WesBanco (WSBC) Q4 2024 earnings summary

Executive summary

• Achieved $1 billion growth in both loans and deposits for 2024, fully funding loan growth with deposits and driven primarily by commercial lending.

• Net income, excluding merger and restructuring expenses, was $47.6 million for Q4 and $146.4 million for the year, with diluted EPS up 29% year-over-year.

• Announced transformative merger with Premier Financial Corp, on track for Q1 2025 close pending regulatory approval and expected to deliver cost savings and revenue synergies.

• Recognized nationally for stability, workplace excellence, and trustworthiness.

• Focused on organic growth, efficiency, and positive operating leverage.

Financial highlights

• Q4 GAAP net income available to common shareholders: $47.1 million ($0.70/share); adjusted net income: $47.6 million ($0.71/share), up 47% year-over-year.

• Full year adjusted net income: $146.4 million ($2.34/share), compared to $151.9 million ($2.56/share) in 2023.

• Total loan growth was 8.7% year-over-year and 6.6% annualized quarter-over-quarter; commercial loans up 10.7% year-over-year.

• Deposits increased 7.3% year-over-year and 8.6% annualized quarter-over-quarter; demand deposits represent 54% of total.

• Net interest margin for Q4 2024 was 3.03%, up 8 bps sequentially and 1 bp year-over-year.

Outlook and guidance

• Expect mid-single-digit net loan growth in 2025, fully funded by deposit growth.

• Modeling two Fed rate cuts in 2025; anticipate 4-6 bps NIM improvement in Q1, more in Q2 as $1B in CDs reprice lower.

• Expense run rate for H1 2025 to be consistent with Q4 2024 ($101M), with modest growth in H2 due to merit increases and higher costs.

• Effective tax rate expected between 17.5% and 18.5%.

• Management expects continued capacity to fund loan growth, supported by strong liquidity and capital positions.