WesBanco's Stellar 2024 Q4 Performance: Strong Loan Growth, Improved Net Interest Margin, and a Bright Outlook for 2025
WesBanco Inc. has reported impressive results in its fourth quarter of 2024, showcasing strong loan growth, improved net interest margin, and a robust capital position. The company's leadership team took to the conference call on January 23, 2025, to discuss the key highlights from the quarter and provide an update on their operations and initial outlook for 2025.
Jeff Jackson, President and Chief Executive Officer of WesBanco, emphasized that the company's strong loan growth has been fully funded through deposit growth. He also highlighted the improved net interest margin, which is expected to continue improving throughout 2025. The company remains focused on organic growth and efficiency gains to achieve positive operating leverage.
One of the key takeaways from the quarter was WesBanco's successful acquisition of Premier Financial Corp., which is pending Fed and FDIC regulatory approvals. The transformative merger has positioned the company for future growth, with a strong balance sheet and net interest margin expected to benefit from it.
The company achieved a compound annual loan growth rate of 9% over the past three years, raised $200 million in common equity, paid down higher-cost borrowings, and saw key successes in its strategy to strengthen its balance sheet and net interest margin. Additionally, WesBanco continued to focus on cost control while enhancing its wealth and treasury management businesses.
In terms of financial performance, WesBano reported net income, excluding merger and restructuring expenses available to common shareholders of $47.6 million for the quarter ending December 31, 2024, and diluted earnings per share of $0.71. On a similar basis, the company reported full-year net income of $146.4 million and diluted earnings per share of $2.34.
The strength of WesBanco's financial performance was reflected in its fourth-quarter return on tangible common equity of 13%, nonperforming assets to total assets of just 0.22%, and a capital position that continues to provide financial and operational flexibility as demonstrated by its tangible common equity ratio of 8.7%.
WesBanco also received numerous national accolades, recognizing its commitment to sustainability and excellence. These accolades are a testament to the hard work and dedication of the company's employees, who have been instrumental in achieving these milestones. The company launched a renewed mission, vision, and pledge that defines its purpose, aspirations, and values, including respect, exceptional customer experiences, soundness, and stability.
WesBanco's treasury management function was retooled to make it a key component of its relationship banking philosophy, helping drive fee income to a larger percentage of total revenue. The company also realized record levels of trust and investment services assets under management of $6 billion and broker-dealer security account values of $1.9 billion through organic growth and market appreciation.
In conclusion, WesBanco's stellar 2024 Q4 performance is a testament to the company's strong leadership, robust financials, and commitment to excellence. With a bright outlook for 2025 and a pending transformative merger, the company is well-positioned to continue delivering value for its customers and stakeholders.
