WesBanco (WSBC) Q4 2024 earnings summary

Executive summary

• Achieved $1 billion growth in both loans and deposits in 2024, fully funding loan growth with deposits and maintaining robust capital and credit quality.

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

• Announced transformative merger with Premier Financial Corp, on track for Q1 2025 close pending regulatory approvals and shareholder approval obtained.

• 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 loans grew 8.7% year-over-year and 6.6% annualized quarter-over-quarter; commercial loans up 10.7% year-over-year.

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

• Fee income rose $6.3 million, or 21%, year-over-year, driven by trust fees, service charges, and swap fee valuation gains.

Outlook and guidance

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

• Modeling two Fed funds rate cuts in 2025; anticipate 4–6 bps NIM improvement in Q1, more meaningful improvement 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 healthcare/software costs.

• Effective tax rate expected between 17.5% and 18.5% for 2025.

• Integration of Premier Financial Corp. expected to deliver cost savings and revenue synergies, subject to regulatory and operational risks.