Core Viewpoint WesBanco, Inc. reported strong financial performance for the fourth quarter and the full year of 2025, driven by solid loan and deposit growth, improved net interest margins, and successful integration of the Premier Financial Corp. acquisition. Financial Performance - Net income for Q4 2025 was $78.2 million, or $0.81 per diluted share, compared to $47.1 million and $0.70 per diluted share in Q4 2024 [1] - For the full year 2025, net income was $202.6 million, or $2.23 per diluted share, reflecting a day one provision for credit losses and expenses related to the PFC acquisition [1] - Adjusted earnings per diluted share for Q4 2025, excluding restructuring and merger-related expenses, was $0.84, up from $0.71 in the prior year [2] Loan and Deposit Growth - Total deposits increased 53.3% year-over-year to $21.7 billion, with $6.9 billion from PFC and organic growth of 4.7% [4] - Total loans increased 51.9% year-over-year to $19.2 billion, driven by organic growth of 5.2% and $5.9 billion from PFC [4] - The company experienced a 6.2% annualized increase in total loans from Q3 2025, despite $415 million in commercial real estate payoffs during the quarter [4] Net Interest Margin and Income - The net interest margin improved to 3.61%, an increase of 58 basis points year-over-year, due to higher earning asset yields and lower funding costs [4][10] - Net interest income for Q4 2025 was $222.3 million, a 75.7% increase year-over-year, attributed to the PFC acquisition and loan growth [11] Non-Interest Income - Non-interest income for Q4 2025 was $43.3 million, an 18.9% increase from the previous year, primarily due to the PFC acquisition [12] - Trust fees and service charges on deposits increased significantly, reflecting the addition of PFC clients and higher consumer spending [12] Non-Interest Expense - Non-interest expense for Q4 2025, excluding restructuring and merger-related costs, was $144.4 million, a 43.7% increase year-over-year, mainly due to the PFC expense base [14] - The efficiency ratio improved to 51.6%, benefiting from expense synergies from the PFC acquisition and a focus on cost control [4][5] Balance Sheet Strength - Total assets increased 48.2% year-over-year to $27.7 billion, reflecting both the PFC acquisition and organic growth [6] - The allowance for credit losses was 1.14% of total portfolio loans, amounting to $218.7 million [9] Capital Ratios - WesBanco maintained strong regulatory capital ratios, with a Tier I leverage ratio of 9.42% and a total risk-based capital ratio of 13.88% as of December 31, 2025 [17]

Financial Results Announcement - Wesbanco, Inc. will release its financial results for Q4 2025 after market close on January 27, 2026[6] - A conference call to discuss the Q4 2025 financial results is scheduled for January 28, 2026, at 9:00 a.m. ET[6] - The press release regarding the earnings announcement is attached as Exhibit 99.1[7]

Core Viewpoint - WesBanco, Inc. will host a conference call to discuss its financial results for the fourth quarter of 2025 on January 28, 2026, following the release of results after market close on January 27, 2026 [1]. Group 1: Conference Call Details - The conference call will be led by Jeff Jackson, President and CEO, and Dan Weiss, Senior Executive Vice President and CFO [1]. - Interested parties can access the live webcast through the Investor Relations section of the company's website or by dialing specific phone numbers for participation [2]. - A replay of the conference call will be available starting January 28, 2026, and will last until February 11, 2026, with access codes provided for listeners [3]. Group 2: Company Overview - WesBanco, Inc. has over 150 years of experience as a community-focused financial services provider, offering a range of banking solutions, trust, brokerage, wealth management, and insurance services [4]. - The company has total assets of $27.5 billion, with $7.7 billion in assets under management in its Trust and Investment Services, and securities account values of $2.6 billion as of September 30, 2025 [4].

Group 1 - WesBanco Inc. (NASDAQ:WSBC) is recognized as one of the best financial pure plays under $100, with a Buy rating assigned by Piper Sandler analyst Manuel Navas, indicating more than 25% upside potential with a target price of $42 [1][2] - Navas has a positive outlook for WesBanco through 2027, driven by strong economic growth and a slight steepening of the yield curve, supported by a dovish monetary policy from the Federal Reserve [2] - Consensus estimates from four analysts covering WesBanco show positive sentiment, with three analysts giving Buy ratings and one assigning a Hold rating, forecasting a 1-year average price target of $39, suggesting an estimated upside of over 16% for investors [3] Group 2 - WesBanco Inc. operates as a community-focused bank providing retail and commercial banking services, wealth management, brokerage, and insurance offerings, as well as lending for community development projects and tax credit loans [4]

Core Viewpoint - The article emphasizes a value-oriented investment philosophy that focuses on intrinsic value and long-term opportunities to achieve superior absolute returns over time [1]. Group 1 - The author founded an investment company in 1995, aiming for portfolios with unusual investment tenures sometimes exceeding 10 years [1]. - The author has experience in micro and small capitalization research at Wasatch Advisors and private banking with J.P. Morgan Private Bank [1]. - The author is a registered investment advisor and licensed professional engineer, with an educational background from the Darden School at the University of Virginia [1].

Company Overview - WesBanco, Inc. (WSBC) is currently experiencing significant activity in the options market, particularly with the Feb 20, 2026 $30.00 Put option showing high implied volatility, indicating potential for a major price movement in the stock [1] - The company holds a Zacks Rank of 3 (Hold) within the Banks - Southeast industry, which is positioned in the top 17% of the Zacks Industry Rank [3] Analyst Sentiment - Over the past 60 days, there have been no increases in earnings estimates for the current quarter, while two analysts have lowered their estimates, resulting in a decrease of the Zacks Consensus Estimate from earnings of 93 cents per share to 84 cents [3] Options Market Insights - The high implied volatility surrounding WesBanco shares suggests that options traders are anticipating a significant price movement, which could be indicative of an upcoming event that may lead to either a rally or a sell-off [2][4] - Options traders often seek to capitalize on high implied volatility by selling premium, aiming for the underlying stock to not move as much as expected by expiration [4]

Core Points - WesBanco, Inc. has declared a quarterly cash dividend of $0.5326 per depositary share on its 7.375% Non-Cumulative Perpetual Preferred Stock, Series B, for the period from September 17, 2025, to January 1, 2026 [1] - The cash dividend is payable on January 1, 2026, to shareholders of record on December 15, 2025 [1] Company Overview - WesBanco, Inc. is a diversified, multi-state bank holding company with over 150 years of experience in community-focused financial services [2] - The company has total assets of $27.5 billion, with $7.7 billion in Trust and Investment Services assets under management and $2.6 billion in securities account values as of September 30, 2025 [2]

Financial Performance - Net income for the three months ended September 30, 2025, reached $83,573 thousand, compared to $37,272 thousand for the same period in 2024, marking a growth of 124.0%[11]. - For the nine months ended September 30, 2025, net income reached $131,995,000, compared to $101,881,000 in 2024, marking a 29.5% increase[16]. - Comprehensive income for the three months ended September 30, 2025, was $108,548 thousand, compared to $90,676 thousand for the same period in 2024, an increase of 19.7%[12]. - Total revenues for the three months ended September 30, 2025, were $259,498 thousand, with a segment profit of $83,573 thousand[160]. - Total revenues for the nine months ended September 30, 2025, reached $641,307,000, with non-interest income at $23,874,000[170]. Asset Growth - Total assets increased to $27,518,042 thousand as of September 30, 2025, up from $18,684,298 thousand at December 31, 2024, representing a growth of 47.0%[9]. - Total deposits rose to $21,284,262 thousand as of September 30, 2025, up from $14,133,717 thousand at December 31, 2024, an increase of 50.9%[9]. - Total loans increased to $19,058,045,000 as of September 30, 2025, compared to $12,675,124,000 at December 31, 2024, indicating a growth of 50.1%[75]. - Cash, cash equivalents, and restricted cash at the end of the period reached $1,008,237,000, up from $620,897,000 at the end of the same period last year, marking a 62.4% increase[18]. Income and Expenses - Net interest income for the three months ended September 30, 2025, was $216,716 thousand, a 79.0% increase from $121,142 thousand in the same period of 2024[11]. - Non-interest income for the nine months ended September 30, 2025, was $123,486 thousand, a 34.7% increase from $91,596 thousand in the same period of 2024[11]. - Total non-interest expense for the nine months ended September 30, 2025, was $476,689 thousand, up from $300,768 thousand in the same period of 2024, reflecting a 58.5% increase[11]. - Non-interest income for Q3 2025 increased by $15.3 million or 51.5% compared to Q3 2024, largely due to the acquisition of PFC and increased consumer spending[188]. Credit Losses and Provisions - The provision for credit losses for the nine months ended September 30, 2025, was $74,183 thousand, significantly higher than $19,352 thousand in the same period of 2024[11]. - The total provision for credit losses was $2.1 million in Q3 2025, down from $4.8 million in Q3 2024, indicating improved credit quality[187]. - The total allowance for credit losses for loans and loan commitments at September 30, 2025, is $138,766 thousand, an increase from $130,675 thousand at December 31, 2024[78]. Acquisition Impact - Wesbanco completed the acquisition of Premier Financial Corp. on February 28, 2025, valued at $1.0 billion, with PFC holding approximately $7.9 billion in assets[38]. - The issuance of common stock for the acquisition of Premier Financial Corp. amounted to $1,007,845,000, significantly impacting the capital structure[16]. - The acquisition resulted in Wesbanco issuing 28,738,104 shares, with PFC shareholders owning about 30% of Wesbanco's voting interests post-acquisition[38]. - Wesbanco's goodwill increased to $1.6 billion as of September 30, 2025, from $1.1 billion at December 31, 2024, primarily due to the PFC acquisition[105]. Shareholder Returns - The company declared dividends of $0.37 per common share for the three months ended September 30, 2025, compared to $0.36 in the same period of 2024[11]. - Common dividends declared were $35,229,000 ($0.37 per share) for the three months ended September 30, 2025, compared to $23,849,000 ($0.36 per share) in 2024, reflecting a 47.7% increase in dividends[14]. - Dividends paid to common shareholders increased to $94,918,000, up from $63,568,000, indicating a 49.3% increase in shareholder returns[18]. Loan Performance - Non-performing loans were 0.50% of total portfolio loans as of September 30, 2025, up from 0.24% at September 30, 2024[202]. - The total amount of classified loans as substandard is $175.648 million as of September 30, 2025, compared to $112.669 million as of December 31, 2024, indicating an increase of approximately 55.9%[88]. - The total amount of unfunded commercial loan commitments is $26.7 million as of September 30, 2025, compared to $36.1 million as of December 31, 2024, reflecting a decrease of approximately 26.5%[88]. Market and Economic Conditions - The effective tax rate for the first nine months of 2025 was 19.8%, up from 17.3% in the same period of 2024, reflecting increased pretax income[190]. - The company anticipates net pre-tax savings of approximately $6 million from its financial center optimization strategy, with closures of 27 locations expected to be completed by January 2026[182]. - The company reported a total loss of $1.346 million from derivative financial instruments for the three months ended September 30, 2025, compared to a loss of $2.331 million for the same period in 2024[118].

Core Insights - Zahid Afzal, a board member of WesBanco, purchased 3,321 shares on October 30, 2025, indicating confidence in the company's stock performance [1][9] - The transaction represents a 33.54% increase in Mr. Afzal's direct holdings, raising them from 9,902 to 13,223 shares [3] - The purchase was valued at approximately $100,000, bringing the total market value of his direct holdings to around $398,000 [2][4] Transaction Details - The shares were acquired at a weighted average price of $30.11, close to the closing price of $30.10 on October 31, 2025 [6] - This acquisition is the largest individual open-market transaction disclosed by Mr. Afzal to date [3] - The increase in direct ownership reflects an expansion of holdings rather than a reallocation among existing shares [5] Company Performance - WesBanco reported a net income of $81 million for Q3 2025, significantly up from $34.7 million in the previous year, resulting in diluted earnings per share of $0.84 compared to $0.54 in 2024 [10] - The company has seen a 54% year-over-year increase in deposits, totaling $21.3 billion, attributed to the acquisition of Premier Financial Corp. and organic growth [11] - Despite facing short-term challenges from the acquisition, WesBanco is expected to emerge as a stronger financial institution in the long run [12] Company Overview - WesBanco operates as a regional financial institution with a diversified product portfolio, including community banking and trust/investment services [8] - The company generates revenue from various sources, including loans, deposits, trust, brokerage, and insurance operations [8] - As of the latest report, WesBanco's revenue for the trailing twelve months (TTM) stands at $762.17 million, with a net income of $125.20 million and a dividend yield of 4.79% [7]

Core Insights - WesBanco, Inc. is expanding its operations in Tennessee by opening a commercial loan production office in Knoxville and a retail banking center in Chattanooga, marking its first retail presence in the state [1][7]. Expansion Strategy - The new Knoxville commercial loan production office (LPO) is part of WesBanco's strategy initiated in 2022 to target metro markets with strong growth demographics adjacent to its existing footprint, contributing to high-single digit loan growth since 2021 [4]. - The Chattanooga retail banking center will offer a comprehensive suite of products, including deposit services, and is set to open in the first half of 2026 [8]. Leadership and Team Development - Adam Thomas has been promoted to Regional President for Tennessee, having previously served as City President in Chattanooga, where he led significant growth [2][3]. - Herc Ligdis has been appointed as City President and Senior Commercial Banker for the new Knoxville LPO, bringing 30 years of banking experience and local market insight [5][6]. Community Engagement and Recognition - WesBanco has established a community advisory board in Chattanooga to better align with local needs and has expanded its team from four to 14 bankers since opening the Chattanooga LPO [7]. - The bank has received multiple accolades for soundness, profitability, and community development, including an "Outstanding" FDIC Community Reinvestment Act rating and recognition in Forbes' Most Trusted Companies in America [8]. Financial Overview - As of September 30, 2025, WesBanco has total assets of $27.5 billion, with $7.7 billion in Trust and Investment Services assets under management and $2.6 billion in securities account values [9].