WesBanco Reports Mixed Q3 Results, Announces Merger with Premier Financial Corp.

WesBanco, Inc. reported its financial results for the three and nine months ended September 30, 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period. Total interest and dividend income for the third quarter increased to $213.7 million, up from $183.6 million in Q3 2023, while for the nine months, it rose to $612.1 million from $520.2 million. However, total interest expense also surged, reaching $92.6 million in Q3 2024 compared to $65.9 million in Q3 2023, and $260.4 million for the nine months, up from $156.6 million.

Net interest income for Q3 2024 was $121.1 million, a slight increase from $117.7 million in the same quarter of 2023. After accounting for provisions for credit losses, net interest income was $116.3 million, compared to $111.4 million in Q3 2023. Net income for the third quarter was $37.3 million, slightly up from $36.8 million a year earlier, while net income available to common shareholders increased to $34.7 million from $34.3 million. However, basic earnings per share decreased to $0.54 from $0.58.

For the nine-month period, net income available to common shareholders fell to $94.3 million from $116.5 million in 2023, with earnings per share declining to $1.54 from $1.96. The decrease in net income was attributed to higher interest expenses and a reduction in net interest margin, which fell by 25 basis points to 2.94%.

WesBanco's total assets increased to $18.3 billion as of September 30, 2024, from $17.3 billion a year prior, with total deposits rising to $13.8 billion, reflecting a 5.1% increase. The bank's net portfolio loans also grew by 7.0% to $12.5 billion, driven by strong demand in commercial loans and a notable increase in land and construction loans.

Strategically, WesBanco announced a merger with Premier Financial Corp. on July 25, 2024, expected to close in Q1 2025, pending regulatory and shareholder approvals. The merger is anticipated to yield cost savings and synergies, although it may present integration challenges. WesBanco incurred $2.0 million in merger-related expenses for the nine months ended September 30, 2024.

The bank's shareholders' equity increased by 10.6% to $2.8 billion, primarily due to a $191 million common equity capital raise to support the merger and other corporate purposes. WesBanco's quarterly dividend was raised to $0.36 per share, marking a cumulative increase of 157% since 2010.