WesBanco Releases Q1 2025 Financial Results Highlighting Growth and Challenges Following PFC Acquisition

WesBanco Reports Financial Results for Q1 2025

WesBanco, Inc., a diversified financial institution, has released its financial results for the first quarter of 2025, highlighting both the challenges and successes following its acquisition of Premier Financial Corp (PFC). The bank reported a net loss of $11.5 million, or $(0.15) per share, reflecting the initial costs associated with the acquisition. In contrast, the preceding year saw a net income of $33.2 million, or $0.56 per share.

Acquisition Impact and Net Income Adjustments

Despite the reported loss, WesBanco's adjusted net income for the first quarter—excluding certain one-time costs—showed strength. After adjusting for the after-tax day one provision for credit losses from acquired loans and merger-related expenses, net income was $51.2 million, translating to $0.66 per share. This increase demonstrates a growing profitability trend compared to the prior year’s adjusted income, which was also $33.2 million at $0.56 per share.

The significant financial maneuvering required in the wake of acquiring PFC was further stressed by the Current Expected Credit Loss (CECL) accounting standard, which necessitated recording expected credit losses over the expected life of the PFC loans. As of March 31, the bank set aside an allowance for credit losses totaling $88.5 million.

Key Financial Metrics

The quarterly results disclosed strong organic loan growth, with a notable 7.8% increase year-over-year and a 4.4% uptick from the previous quarter, fully funded through deposit growth. Total loans surged to $18.7 billion, buoyed by an additional $5.9 billion from the PFC acquisition and organic growth initiatives. Meanwhile, total deposits escalated to $21.3 billion, reflecting a year-over-year growth of 57.8% aided by $6.9 billion in deposits from PFC.

The net interest margin rose to 3.35%, an improvement that came about due to operational efficiency and a concerted effort to optimize funding costs. The bank’s efficiency ratio also saw an improvement of over 800 basis points year-over-year, reaching 58.6% thanks to cost management strategies and the benefits from the PFC acquisition.

Management Commentary

Jeff Jackson, WesBanco’s President and CEO, emphasized the bank's resilience amid significant operational changes. He remarked, "Our first quarter results demonstrate continued solid operational performance, as we again delivered strong organic loan and deposit growth while driving positive operating leverage. The successful completion of our PFC acquisition marks a pivotal moment for WesBanco, further solidifying our position in the market and enhancing our growth trajectory.”

Future Outlook

The bank will hold a follow-up conference call on April 30 to discuss these results in greater detail and outline the future direction of the company. Jackson asserts that the team's focus is on seamless integration with PFC and maximizing the advantages that this union presents for all stakeholders.

This quarter's mixed financial outcomes showcase the impact of strategic decisions in the financial services sector, as WesBanco aligns itself for robust future growth through careful asset management and enhanced capabilities across its expansive footprint.

Conclusion

WesBanco's Q1 2025 performance highlights a blend of challenges stemming from significant acquisitions and operational adjustments. Still, the bank remains committed to leveraging growth opportunities, emphasizing its financial resilience and ongoing commitment to providing superior banking solutions to its customers across its multi-state operational base.