Wesbanco, Inc. · NASDAQ:WSBC
Wesbanco — Q1 2025 Earnings Presentation
51 slides from Wesbanco's earnings presentation, Apr 30, 2025
Slide 1: Investor Presentation (Q1 2025)
Investor Presentation (Q1 2025) (WSBC financials as of the three months ended December 31, 2024) John Iannone Senior Vice President, Investor Relations 304-905-7021
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures Forward-looking statements in this report relating to WesBanco’s plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform A
Slide 3: Additional Information about the Acquisition and Where to Find It
Additional Information about the Acquisition and Where to Find It In connection with the proposed Merger, the Company filed with the Securities and Exchange Commission (the “SEC”) a Registration Statement on Form S-4 which includes a joint proxy statement of Premier Financial and the Company and a p
Slide 4: Differentiated Regional Financial Services Institution
Differentiated Regional Financial Services Institution Diversified business model with strong market presence Strong Market Presence in Major Markets • Strong and balanced market presence across diverse #10 Pgh geographies that supports #17 in OH MSA disciplined organic growth #13 in MD #3 in WV • G
Slide 5: Investment Rationale
Investment Rationale Unique advantages, sustainable growth, shareholder focus • Balanced loan and deposit distribution across contiguous eight state footprint, with complementary loan production office strategy Balanced and • Full suite of commercial and consumer banking capabilities, complemented b
Slide 6: Strategies for Long-Term Success
Strategies for Long-Term Success ©2025 WesBanco, Inc. | All rights reserved
Slide 7: Long-Term Growth Strategies
Long-Term Growth Strategies Organic growth-oriented business model Diversified Distinct Digital Franchise- Loan Revenue Banking Enhancing Portfolio Capabilities, Service Expansion Built upon a Led by 100+ Strategies through LPO Relationship Year Wealth and Core Strategy and Focused Management Deposi
Slide 8: Diversified Loan Portfolio
Diversified Loan Portfolio Focus on balanced loan growth with strong underwriting standards • Focus on strategic diversification and growth built $12.7 Billion Loan Portfolio upon strong credit quality Comm'l & Industrial ▪ Balance disciplined loan origination with prudent Comm'l R/E: 14% Consumer u
Slide 9: Wealth Management
Wealth Management Strong capabilities built upon a century of success Trust & Investment Services Securities Brokerage • $6.0B of trust and mutual fund • $1.9B in account value assets under management • 11,550+ accounts • 6,800+ relationships • Securities investment sales • Legacy market private wea
Slide 10: Treasury Management
Treasury Management New capabilities with long-term growth opportunities • Focus on building comprehensive business customer relationships by providing individualized services to improve cash flow management, increase earning power, and strengthen fraud protection for clients • Key Treasury Manageme
Slide 11: Robust Digital Capabilities
Robust Digital Capabilities Leveraging digital to drive customer value and enterprise efficiency • Digital banking utilization ▪ ~75% of retail customers utilize online digital banking services ▪ ~5.0 million web and mobile logins per month ▪ Mobile ~50% of total, with an average of 16 monthly login
Slide 12: Core Deposit Funding and Pricing Advantages
Core Deposit Funding and Pricing Advantages Differentiated and peer-leading deposit profile • Granular core deposit funding base supports diversified commercial and retail strategy • Peer-leading non-interest bearing deposit levels drives competitive funding advantage ▪ Total demand deposits (~54% o
Slide 13: Franchise-Enhancing Expansion
Franchise-Enhancing Expansion Franchise-Enhancing Expansion Loan production office strategy and targeted acquisitions Contiguous Markets Expansion • Targeted acquisitions in existing markets and new higher-growth metro areas, as well as a complementary loan production office (“LPO”) strategy • Long-
Slide 14: Delivering Positive Operating Leverage
Delivering Positive Operating Leverage Track-record of expense control with on-going enhancement efforts • Track-record of disciplined growth, balanced by a fundamental focus on expense management and supported by franchise-enhancing acquisitions, in order to deliver positive operating leverage and
Slide 15: Strong Risk Management and Capital Position
Strong Risk Management and Capital Position Capital ratios above both regulatory and well-capitalized levels • Strong legacy of credit and risk management and regulatory compliance ▪ Based upon conservative underwriting standards and approval processes supported by centralized back-office and loan f
Slide 16: Commitment to Sustainability
Commitment to Sustainability Ensuring a strong financial institution for all of our stakeholders $2.3 billion 8 consecutive ”Outstanding” composite ~70% female Community Development Employees, including Lending (2019-2023) ratings from the FDIC for CRA performance, a period ~55% of Bank Officers spa
Slide 17: Commitment to Excellence
Commitment to Excellence National accolades a testament to strong performance & foundation • WesBanco was one of just 300 public companies being named to Forbes’ inaugural list of the Most Trusted Companies in America • Newsweek again named WesBanco Bank one of America’s Best Regional Banks, based o
Slide 18: Financial Overview
Financial Overview ©2025 WesBanco, Inc. | All rights reserved
Slide 19: Q4 2024 Financial and Operational Highlights
Q4 2024 Financial and Operational Highlights Loan growth of $1 billion matched by deposit growth of $1 billion • Continued strong loan growth both year- Net Income Available to Common over-year and quarter-over-quarter, Shareholders and Diluted EPS(1) driven by commercial lending $47.6 million; $0.7
Slide 20: Total Loans up $1.0 Billion Year-over-Year
Q4 2024 Total Portfolio Loans Total loans up $1.0 billion year-over-year ($MM) • +8.7% year-over-year and +1.6% (or +6.6% annualized) quarter-over-quarter ▪ Commercial loan growth was +10.7% year- over-year and +8.5% quarter-over-quarter annualized Comm'l Avg Comm'l Avg Payoff Yield New Yield 7.46%
Slide 21: Strong Deposit Growth Fully Funded Strong Loan Growth
Q4 2024 Total Deposits Strong deposit growth fully funded strong loan growth • Deposits of $14.1 billion were up 7.3% ($MM) year-over-year and 8.6% annualized quarter-over-quarter, reflecting the success of our summer deposit gathering and retention campaign ▪ When excluding CDs, total deposits incr
Slide 22: NIM Benefiting From Loan Growth and the Paydown of Borrowings
Q4 2024 Net Interest Margin (NIM) NIM benefiting from loan growth and the paydown of borrowings • Q4 2024 NIM of 3.03 improved 8 basis points from the third quarter and 1 basis point from the prior year period, through a combination of higher loan and securities yields and lower funding costs • Loan
Slide 23: Fee Income Increased $6.3 Million, or 21%, Year-over-Year
Q4 2024 Non-Interest Income Fee income increased $6.3 million, or 21%, year-over-year • Non-interest income increased year-over- Quarter Ending % H / (L) % H / (L) year reflecting growth in net swap fee and ($000s) 12/31/24 12/31/23 09/30/24 valuation income, trust fees, and service charges on depos
Slide 24: Focused on Efficiency Gains to Support Positive Operating Leverage
Q4 2024 Non-Interest Expense Focused on efficiency gains to support positive operating leverage • Non-interest expense, excluding merger Quarter Ending % H / (L) % H / (L) and restructuring charges, increased just ($000s) 12/31/24 12/31/23 09/30/24 1% year-over-year, reflecting company- wide efficie
Slide 25: Disciplined Execution Upon Growth Strategies
Disciplined Execution upon Growth Strategies Comparable operating measures to peer bank group Return on Average Tangible Common Equity Return on Average Assets 15.5% 1.40% 16.7% 15.5% 1.18% 13.2% 13.1% 1.27% 1.09% 0.95% 0.90% 15.6% 0.89% 0.88% 0.81% 10.9% 11.0% 0.77% 9.5% 11.0% 8.9% 16.4% 15.4% 13.0
Slide 26: Strong Legacy of Credit Quality
Strong Legacy of Credit Quality Favorable asset quality measures compared to peer bank group Criticized & Classified Loans as % of Total Loans Non-Performing Assets as % of Total Assets 4.76% 0.60% 0.49% 3.30% 2.88% 3.03% 0.38% 0.37% 0.31% 1.90% 4.59% 3.75% 2.34% 2.22% 2.80% 0.25% 0.23% 0.25% 0.16%
Slide 27: Capital Management Strategy
Capital Management Strategy Returning value to shareholders • Focus on appropriate capital allocation to provide financial flexibility while continuing to enhance shareholder value through earnings growth and effective capital management • Capital management strategy: dividends, loan growth, acquisi
Slide 28: Appendix
Appendix ©2025 WesBanco, Inc. | All rights reserved
Slide 29: Q4 2024 Financial and Operational Highlights
Q4 2024 Financial and Operational Highlights Key metrics Quarter Ending H / (L) H / (L) Year-to-Date H / (L) 12/31/24 12/31/23 09/30/24 12/31/24 12/31/23 Return on Average Assets (1)(2) 1.02% 28bp 23bp 0.81% (7bp) PTPP Return on Average Assets (1)(2) 1.34% 24bp 22bp 1.16% (9bp) Return on Average Equ
Slide 30: Securities 18.3% of Assets
Q4 2024 Total Securities Securities 18.3% of assets, down 97 basis points year-over-year Equities • Tangible common equity to tangible assets ($MM) 0% ratio improved 108 basis points year-over- Held-to- 95% States & Political Subdivisions year to 8.70% Maturity 34% 5% Other • Weighted average yield
Slide 31: Allowance Coverage Ratio of 1.10%
Q4 2024 Current Expected Credit Loss (CECL) Allowance coverage ratio of 1.10% • The allowance for credit losses was $138.8 million at December 31, 2024, which provided a coverage ratio of 1.10% • Excluded from the allowance for credit losses and related coverage ratio are fair market value adjustmen
Slide 32: Non-Interest Expense to Total Assets and Efficiency Ratio
Reconciliation Non-Interest Expense to Total Assets and Efficiency Ratio Three Months Ending Twelve Months Ending Twelve Months Ending ($000s) 12/31/23 09/30/24 12/31/24 12/31/23 12/31/24 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 12/3
Slide 33: Pre-Tax, Pre-Provision Income (PTPP) and Ratios
Reconciliation Pre-Tax, Pre-Provision Income (PTPP) and Ratios Three Months Ending Twelve Months Ending ($000s) 12/31/23 09/30/24 12/31/24 12/31/23 12/31/24 Income before Provision for Income Taxes $43,526 $44,773 $61,937 $194,049 $185,114 Provision for Credit Losses 4,803 4,798 (147) 17,734 19,206
Slide 34: Net Income and Diluted Earnings per Share (EPS)
Reconciliation Net Income and Diluted Earnings per Share (EPS) Three Months Ending Twelve Months Ending ($000s, except earnings per share) 12/31/23 09/30/24 12/31/24 12/31/23 12/31/24 Net Income Available to Common Shareholders $32,437 $34,741 $47,098 $148,907 $141,385 Restructuring and Merger-Relat
Slide 35: Tangible Book Value per Share
Reconciliation Tangible Book Value per Share Three Months Ending Twelve Months Ending ($000s, except earnings per share) 12/31/10 12/31/23 09/30/24 12/31/24 12/31/23 12/31/24 Total Shareholders Equity (period-end) $606,863 $2,533,062 $2,801,585 $2,790,281 $2,533,062 $2,790,281 Goodwill & Other Intan
Slide 36: Return on Average Assets
Reconciliation Return on Average Assets Three Months Ending Twelve Months Ending Twelve Months Ending ($000s) 12/31/23 12/31/24 12/31/23 12/31/24 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 Net Income Available to Common Shareholders $32,437 $47,098 $148,907 $141,385 $119,400 $232,135 $181,988 $148
Slide 37: Return on Average Tangible Equity
Reconciliation Return on Average Tangible Equity Three Months Ending Twelve Months Ending Twelve Months Ending ($000s) 12/31/23 12/31/24 12/31/23 12/31/24 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 Net Income Available to Common Shareholders $32,437 $47,098 $148,907 $141,385 $119,400 $232,135 $181
Slide 38: Return on Average Tangible Common Equity
Reconciliation Return on Average Tangible Common Equity Three Months Ending Twelve Months Ending Twelve Months Ending ($000s) 12/31/23 12/31/24 12/31/23 12/31/24 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 Net Income Available to Common Shareholders $32,437 $47,098 $148,907 $141,385 $119,400 $232,1
Slide 39: Appendix for Proposed Acquisition of Premier Financial Corp.
Appendix for Proposed Acquisition of Premier Financial Corp. NOTE: slides in this section are directly from the presentation filed in conjunction with the acquisition announcement on July 26, 2024 – for additional information, please see the associated Form 8-K filing at https://investor.wesbanco.co
Slide 40: Merger rationale
Acquisition of Premier Financial Corp. Merger rationale • With ~$27B in assets, the combined organization will benefit from significant economies of scale • Complementary geographic footprints in familiar markets Increased Scale • Rise to #8 from #15 in Ohio deposit market share • 2025 EPS Accretion
Slide 41: Pro forma company profile
Acquisition of Premier Financial Corp. Pro forma company profile Projected Balance Sheet Highlights at Close Projected 2025Y Performance Highlights(2) $27B $21B $19B $1.8B 13.2% 40%+ 1.3% 18.6% 3.46% Total Assets Total Deposits Net Loans TCE(1) TRBC Ratio EPS Accretion ROAA ROATCE NIM +0.4% vs. +7.2
Slide 42: Merger terms
Acquisition of Premier Financial Corp. Merger terms • 100% stock consideration Structure & • Fixed exchange ratio – 0.80 WSBC shares to be issued for each PFC share Consideration • Pro forma ownership: 62% WSBC, 30% PFC, 8% new shareholders • Deal value of $959 million, or $26.66 per PFC share(1) Tr
Slide 43: Successful common equity raise
Acquisition of Premier Financial Corp. Successful common equity raise • Successfully raised $200 million of common equity prior to the announcement of the Premier Financial Corp. acquisition in order to support the pro-forma bank’s balance sheet and regulatory ratios • Equity raised from 10 institut
Slide 44: Key transaction assumptions
Acquisition of Premier Financial Corp. Key transaction assumptions • Projections for WSBC and PFC based on consensus estimates through 2025; Earnings 5% growth thereafter • ~26% of PFC’s NIE expense base ($41.4 million on a fully phased basis) Cost Savings • 75% to be realized in 2025 and 100% to be
Slide 45: Impact summary
Acquisition of Premier Financial Corp. Impact summary Earnings and TBV Impact Strong Capital Ratios Excluding Excluding Rate Metrics shown at closing(5) Rate Marks/ Core Marks/CDI(1)(2) CDI/CECL(1)(2)(3) 10.9% 9.0% 12.1% (1) Tier 1 Tier 1 Total Risk- ~40%+ ~28% ~21% Common Leverage Based 2025 EPS 20
Slide 46: Enhanced profitability and capital generation
Acquisition of Premier Financial Corp. Enhanced profitability and capital generation (2025E) Comparison with $20B – $40B Peers ROAA 1.3% Forma Pro 18.6% ROATCE (2025E) Forma Pro (2025E) 3.46% NIM Forma Pro 51% EFFCNCY. (2025E) RATIO Forma Pro Note: Peers defined as Mid-Atlantic, Midwest and Southeas
Slide 47: Capital adequacy
Acquisition of Premier Financial Corp. Capital adequacy Pro forma capital ratios remain strong, supported by additional common equity and balance sheet repositioning WesBanco Premier Pro- 06/30/2024 06/30/2024 Forma(1) Tier 1 Leverage Ratio (Consolidated) 9.7% 10.3% 8.6% Tier 1 Common Ratio (Consoli
Slide 48: Capital accretion post transaction
Appendix Capital accretion post transaction CET1 Capital Ratio (%) Tier 1 Risk-Based Capital Ratio (%) 10.9 11.3 11.3 10.9 10.7 10.1 10.3 9.6 At Close 12/31/2025 At Close 12/31/2025 Total Risk-Based Capital (%) Leverage Ratio (%) 9.5 9.0 9.0 13.5 8.6 13.2 12.5 12.1 At Close 12/31/2025 At Close 12/31
Slide 49: Illustrative pro forma earnings accretion reconciliation
Appendix Illustrative pro forma earnings accretion reconciliation Illustrative Fully Phased-In EPS Accretion Adjusted Unadjusted Dollars in millions; excluding per share data 2025E (1) 2025E WSBC Earnings $ 150.7 $ 150.7 PFC Earnings 80.2 80.2 Combined Earnings $ 230.8 $ 230.8 Run-Rate Cost Savings
Slide 50: Tangible book value dilution reconciliation
Appendix Tangible book value dilution reconciliation Estimated Tangible Book Value Dilution Detail Calculation of Estimated Intangibles Created Shares $ per $ Millions $ Millions (Millions) Share Aggregate Transaction Value $ 959 WSBC TBV at Close (12/31/2024) $ 1,305 60 $ 21.90 Net Proceeds from Eq
Slide 51: Non-GAAP reconciliations
Appendix Non-GAAP reconciliations WSBC Tangible Book Value PFC Tangible Book Value $ Millions $ Millions Total Shareholders' Equity $ 2,544.3 Total Shareholders' Equity $ 979.1 Less: Goodwill and Other Intangible Assets, net of DTL (1,121.5) Add back: DTL 2.2 Tangible Equity 1,422.8 Less: Goodwill a