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1. Company Snapshot

1.a. Company Description

WesBanco, Inc.operates as the bank holding company for WesBanco Bank, Inc.that provides retail banking, corporate banking, personal and corporate trust, brokerage, and mortgage banking and insurance services.


It operates in two segments, Community Banking, and Trust and Investment Services.The company offers commercial demand, individual demand, and time deposit accounts; money market accounts; interest bearing and non-interest bearing demand deposits, as well as savings deposits; and certificates of deposit.It also provides commercial real estate loans; commercial and industrial loans; residential real estate loans, including loans to purchase, construct, or refinance borrower's home; home equity lines of credit; installment loans to finance the purchase of automobiles, trucks, motorcycles, boats, and other recreational vehicles, as well as home equity installment loans, unsecured home improvement loans, and revolving lines of credit; and commercial, mortgage, and individual installment loans.


In addition, the company offers trust and investment services, as well as various investment products comprising mutual funds and annuities; and securities brokerage services.Further, WesBanco, Inc., through its non-banking subsidiaries, acts as an agency that specializes in property, casualty, life, and title insurance, as well as benefit plan sales and administration to personal and commercial clients; provides broker dealer and discount brokerage services; holds investment securities and loans; and holds and leases commercial real estate properties, as well as acts as an investment adviser to a family of mutual funds.As of December 31, 2021, it operated 206 branches and 203 ATMs in West Virginia, Ohio, western Pennsylvania, Kentucky, southern Indiana, and Maryland, as well as seven loan production offices in West Virginia, Ohio, western Pennsylvania, Maryland, and northern Virginia.


WesBanco, Inc.was founded in 1870 and is headquartered in Wheeling, West Virginia.

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1.b. Last Insights on WSBC

The recent 3-month performance of WesBanco, Inc. was negatively impacted by the lack of revenue growth over the past 5 years and poor profitability (ROE). Despite the successful acquisition of Premier Financial, which combined with strong organic loan and deposit growth, the company's revenue growth remains stagnant. The acquisition is expected to provide EPS accretion of 42% due to operating synergies, mainly cost savings. However, the company's inability to drive revenue growth and improve profitability remains a concern.

1.c. Company Highlights

2. WesBanco's Q3 Earnings Shine with Strong Loan Growth and NIM Expansion

WesBanco Inc.'s third-quarter 2025 earnings per share was $0.94, excluding merger-related charges, driven by loan growth funded by deposit growth, a net interest margin of 3.53%, and a 52% year-over-year increase in fee income. Net income, excluding merger and restructuring expenses, was $90 million, a 68% year-over-year increase. The efficiency ratio improved to 55%, a 10-percentage-point improvement year-over-year. The company's actual EPS of $0.94 beat estimates of $0.89, demonstrating a strong operational performance.

Publication Date: Nov -02

📋 Highlights
  • Earnings Growth: Excluding merger charges, EPS hit $0.94 with net income surging 68% YoY to $90 million.
  • Fee Income Surge: Noninterest income rose 51.5% to $44.9 million, driven by diversified fee streams.
  • Deposit Growth: Deposits grew 53.8% YoY to $21.3 billion, fully funding $18.9 billion in loan growth.
  • Margin Expansion: Net interest margin widened 58 bps YoY to 3.53%, with a projected rebound to 3.55–3.65 in Q4.
  • Efficiency Gains: Efficiency ratio improved 10 percentage points to 55%, with $6 million annual savings from branch closures.

Loan Growth and Deposit Trends

Total assets were $27.5 billion, a 49% year-over-year increase, with total portfolio loans of $18.9 billion and total securities of $4.4 million. Deposits increased 53.8% year-over-year to $21.3 billion, fully funding loan growth. The company expects mid-single-digit year-over-year loan growth in 2025, driven by its premier markets, new healthcare vertical, and LPOs. The healthcare team has been successful, closing $250 million in loans and bringing in $80 million in deposits over the past six months.

Net Interest Margin and Asset Quality

The net interest margin improved 58 basis points year-over-year to 3.53%. The company expects a net interest margin rebound in the fourth quarter to the mid- to high 3.50s. Commercial real estate payoffs were $235 million in the third quarter and $490 million year-to-date, with a projected $800 million for the year, indicating a manageable asset quality.

Outlook and Valuation

The company expects noninterest income and noninterest expense to remain consistent with third-quarter trends. With a P/TBV ratio of 0.66 and a dividend yield of 4.92%, WesBanco appears attractively valued. Analysts estimate next year's revenue growth at 12.6%, suggesting a positive outlook. The company's focus on driving positive operating leverage through sustainable long-term growth is expected to continue, with an efficiency ratio expected to continue to improve.

Capital Management

The company's CET1 capital ratio target is between 10.5% and 11%, and it is growing CET1 by 15 to 20 basis points per quarter. The company raised $230 million in capital, with $150 million to be used to pay off the Series A preferred stock, effectively borrowing back from the Federal Home Loan Bank. This capital management strategy is expected to support the company's growth initiatives.

3. NewsRoom

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Cetera Investment Advisers Has $1.69 Million Position in WesBanco, Inc. $WSBC

Dec -01

Source: defenseworld.net

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WesBanco, Inc. $WSBC is Bayview Asset Management LLC’s 9th Largest Position

Dec -01

Source: defenseworld.net

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WesBanco, Inc. $WSBC Stock Holdings Decreased by Creative Planning

Nov -24

Source: defenseworld.net

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WesBanco Declares Quarterly Cash Dividend upon Its Perpetual Preferred Stock, Series B

Nov -19

Source: prnewswire.com

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WesBanco Declares Increase in Quarterly Cash Dividend to Its Shareholders

Nov -19

Source: prnewswire.com

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Allworth Financial LP Increases Position in WesBanco, Inc. $WSBC

Nov -19

Source: defenseworld.net

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Is WesBanco Stock a Buy After a Member of the Board of Directors Purchased Shares Worth $100,000?

Nov -08

Source: fool.com

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Y Intercept Hong Kong Ltd Takes Position in WesBanco, Inc. $WSBC

Nov -06

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.09%)

6. Segments

Community Banking

Expected Growth: 5%

WesBanco's Community Banking segment growth is driven by strategic acquisitions, expanding commercial loan portfolio, and increased deposit market share. Additionally, investments in digital banking platforms and enhanced customer experience contribute to growth. Furthermore, a strong presence in the Mid-Atlantic region and a focus on small business and consumer banking also support growth.

Trust and Investment Services

Expected Growth: 7%

WesBanco's Trust and Investment Services segment growth is driven by increasing demand for wealth management services, strategic acquisitions, and expansion into new markets. Additionally, the company's focus on digital transformation, enhanced customer experience, and diversified product offerings contribute to its 7% growth rate.

7. Detailed Products

Consumer Banking

Provides personal banking services, including checking and savings accounts, credit cards, personal loans, and mortgages.

Commercial Banking

Offers financial solutions for businesses, including commercial loans, cash management, and treasury management services.

Wealth Management

Provides investment and wealth management services, including brokerage, trust, and insurance services.

Mortgage Banking

Offers mortgage lending services, including residential and commercial mortgage loans.

Treasury Management

Provides cash management and treasury services, including account management, payment processing, and fraud prevention.

Insurance Services

Offers insurance products, including life, disability, and long-term care insurance.

8. WesBanco, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

WesBanco, Inc. operates in a highly competitive banking industry, where customers have various alternatives for their banking needs. However, the company's strong brand presence and extensive branch network help to mitigate the threat of substitutes.

Bargaining Power Of Customers

WesBanco, Inc.'s customers have some bargaining power due to the availability of alternative banking services. However, the company's focus on customer relationships and personalized services helps to reduce the bargaining power of customers.

Bargaining Power Of Suppliers

WesBanco, Inc. has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company's strong financial position also gives it negotiating power over its suppliers.

Threat Of New Entrants

The banking industry has high barriers to entry, including regulatory hurdles and significant capital requirements. This limits the threat of new entrants and gives WesBanco, Inc. a competitive advantage.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players competing for market share. WesBanco, Inc. faces intense competition from larger banks and fintech companies, which puts pressure on its market share and pricing power.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 40.65%
Debt Cost 5.51%
Equity Weight 59.35%
Equity Cost 8.39%
WACC 7.22%
Leverage 68.49%

11. Quality Control: WesBanco, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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First Bancorp

A-Score: 6.6/10

Value: 7.0

Growth: 4.9

Quality: 5.9

Yield: 9.0

Momentum: 5.0

Volatility: 8.0

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Bar Harbor Bank

A-Score: 6.3/10

Value: 5.5

Growth: 5.9

Quality: 6.4

Yield: 8.0

Momentum: 5.0

Volatility: 7.0

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Farmers National Banc

A-Score: 6.2/10

Value: 7.0

Growth: 5.6

Quality: 5.4

Yield: 8.0

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Stellar Bancorp

A-Score: 6.2/10

Value: 6.0

Growth: 4.9

Quality: 7.5

Yield: 4.0

Momentum: 7.0

Volatility: 7.7

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WesBanco

A-Score: 5.8/10

Value: 5.1

Growth: 4.0

Quality: 4.2

Yield: 8.0

Momentum: 6.0

Volatility: 7.3

1-Year Total Return ->

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California Bank

A-Score: 4.8/10

Value: 5.8

Growth: 8.4

Quality: 6.3

Yield: 0.0

Momentum: 5.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

32.71$

Current Price

32.71$

Potential

-0.00%

Expected Cash-Flows