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WesBanco Inc (WSBC)
NASDAQ:WSBC
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WesBanco
(NASDAQ:WSBC)
69Neutral
Positive Factors
Financial Performance
WSBC's PPNR beat expectations by +13% on better NII and Fees with OpEx in line.
Profitability
WSBC remains Manuel’s Top Pick this year on NIMs and growth, with turbocharge profitability as it integrates its PFC deal.
Negative Factors
Valuation
WSBC trades at an unwarranted valuation discount compared to peers despite above-peer expectations for future returns.
WesBanco (WSBC) vs. S&P 500 (SPY)
Market Cap
$2.97B
Dividend Yield4.67%
Average Volume (3M)716.46K
Price to Earnings (P/E)14.5
Beta (1Y)1.13
Revenue Growth13.59%
EPS Growth-10.62%
CountryUS
Employees2,321
SectorFinancial
Sector Strength77
IndustryBanking
Share Statistics
EPS (TTM)2.24
Shares Outstanding95,682,990
10 Day Avg. Volume1,121,363
30 Day Avg. Volume716,456
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.72
Price to Cash Flow (P/CF)8.10
P/FCF Ratio4.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$40.00Price Target Upside30.89% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
WesBanco Business Overview & Revenue Model
Company DescriptionWesBanco, Inc. is a bank holding company. It offers financial services including retail banking, corporate banking, personal and corporate trust services, brokerage services, mortgage banking and insurance. The company operates through the following segments: Community Banking, and Trust & Investment Services. The Community Banking segment offers services traditionally offered by service commercial banks, including commercial demand, individual demand and time deposit accounts, as well as commercial, mortgage and individual installment loans, and certain non-traditional offerings, such as insurance and securities brokerage services. The Trust & Investment Services segment offers trust services as well as various alternative investment products including mutual funds. The company was founded on April 3, 1870 and is headquartered in Wheeling, WV.
How the Company Makes MoneyWesBanco primarily generates its revenue through interest income from its lending activities, which includes commercial real estate loans, residential mortgage loans, and consumer loans. The interest earned on these loans constitutes a significant portion of the company's income. Additionally, WesBanco earns non-interest income through service charges on deposit accounts, fees from its wealth management and investment services, and commissions from its insurance operations. The bank's earnings are also supported by strategic partnerships and its ability to manage its interest margins effectively, balancing between the interest rates paid on deposits and the interest earned on loans.
WesBanco Financial Statement Overview
Summary
WesBanco demonstrates strong financial performance with consistent revenue growth, stable equity, and effective cost management. However, fluctuations in net income and return on equity need attention.Income Statement
WesBanco has demonstrated a solid financial performance with a notable increase in total revenue over the years. The gross profit margin remains strong as total revenue and gross profit are equal, indicating effective cost management. However, the net profit margin shows volatility, with a decline in net income for the latest year. Despite this, the EBIT margin remains robust, indicating operational efficiency.72
Positive
Balance Sheet
The company's balance sheet reflects stability with a strong equity ratio, suggesting a healthy level of stockholder equity relative to total assets. The debt-to-equity ratio is low, highlighting conservative leverage and potential for future borrowing if necessary. However, the return on equity has seen fluctuations, pointing to some inconsistency in generating returns on shareholder investments.68
Positive
Cash Flow
Cash flow analysis shows a mixed picture. Operating cash flow has been positive, indicating good cash generation from operations. The free cash flow growth rate is positive, but volatile, suggesting inconsistent capital expenditure management. The free cash flow to net income ratio is favorable, indicating efficient conversion of profits into cash flow.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 825.64M | 594.69M | 591.70M | 590.72M | 607.66M | Gross Profit |
| 825.64M | 526.88M | 527.39M | 520.66M | 536.92M | EBIT |
| 815.88M | 287.03M | 275.74M | 301.85M | 145.08M | EBITDA |
| 0.00 | 0.00 | 440.00M | 406.27M | 464.57M | Net Income Common Stockholders |
| 151.51M | 159.03M | 192.11M | 242.26M | 122.04M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 2.81B | 595.38M | 2.94B | 4.26B | 2.88B | Total Assets |
| 18.68B | 17.71B | 16.93B | 16.93B | 16.43B | Total Debt |
| 192.07M | 1.73B | 1.12B | 458.67M | 983.24M | Net Debt |
| -376.06M | 1.14B | 713.06M | -792.68M | 77.80M | Total Liabilities |
| 15.89B | 15.18B | 14.51B | 14.23B | 13.67B | Stockholders Equity |
| 2.79B | 2.53B | 2.43B | 2.69B | 2.76B |
| Cash Flow | Free Cash Flow | |||
| 211.00M | 146.82M | 196.15M | 327.76M | 52.05M | Operating Cash Flow |
| 211.00M | 169.32M | 204.14M | 336.30M | 59.61M | Investing Cash Flow |
| -1.03B | -535.22M | -1.07B | -328.50M | 57.79M | Financing Cash Flow |
| 791.90M | 552.87M | 21.07M | 338.11M | 553.25M |
WesBanco Technical Analysis
Negative
30.56
Price Trends
33.47
Negative
33.36
Negative
31.00
Negative
Market Momentum
-0.76
Positive
26.71
Positive
3.33
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WSBC, the sentiment is Negative. The current price of 30.56 is below the 20-day moving average (MA) of 34.36, below the 50-day MA of 33.47, and below the 200-day MA of 31.00, indicating a bearish trend. The MACD of -0.76 indicates Positive momentum. The RSI at 26.71 is Positive, neither overbought nor oversold. The STOCH value of 3.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WSBC.
WesBanco Risk Analysis
WesBanco disclosed 36 risk factors in its most recent earnings report. WesBanco reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
WesBanco Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.78B | 9.65 | 16.19% | 2.55% | 12.13% | 10.42% | |
72 Outperform | $1.51B | 9.45 | 10.44% | ― | -3.61% | -29.58% | |
69 Neutral | $2.97B | 14.46 | 5.69% | 4.67% | 13.59% | -10.62% | |
69 Neutral | $2.00B | 10.05 | 2.68% | 2.69% | -11.99% | -103.10% | |
64 Neutral | $1.58B | 17.19 | 14.02% | 3.11% | 9.38% | -0.59% | |
64 Neutral | $13.80B | 10.64 | 9.23% | 4.22% | 17.66% | -7.66% | |
62 Neutral | $3.18B | 11.71 | 9.69% | 3.95% | 21.10% | -4.20% |
* Financial Sector Average
Performance Comparison
WSBC
WesBanco
30.56
2.99
10.85%
FULT
Fulton Financial
17.24
2.57
17.52%
LKFN
Lakeland Financial
61.11
-2.74
-4.29%
OFG
OFG Bancorp
38.85
3.75
10.68%
TRMK
Trustmark
32.93
7.49
29.44%
CUBI
Customers Bancorp
48.20
-4.05
-7.75%
WesBanco Earnings Call Summary
Earnings Call Date: Jan 22, 2025 | % Change Since: -2.61% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Positive
WesBanco delivered strong financial results with significant loan and deposit growth, improved net interest margin, and national recognition. The pending acquisition of Premier Financial is expected to further enhance growth. However, there were some concerns about decreased full-year net income and an increase in non-performing loans. Overall, the highlights significantly outweigh the lowlights, indicating a positive outlook.Highlights
Strong Loan and Deposit Growth
WesBanco reported strong loan growth of $1 billion, fully funded by deposit growth of $1 billion, achieving a compound annual loan growth rate of 9% over the past 3 years.
Improved Net Interest Margin
The net interest margin improved to 3.03% with expectations of further improvement in 2025 due to deposit repricing and Federal Home Loan Bank borrowings paydown.
Record Financial Performance
Net income excluding merger and restructuring expenses increased 47% year-over-year to $47.6 million, with a return on tangible common equity of 13%.
Pending Acquisition of Premier Financial
The acquisition of Premier Financial is on track for a first-quarter closing, expected to accelerate positive momentum and expand community engagement.
National Recognition
WesBanco received national accolades for stability, trustworthiness, and workplace excellence, including being named one of Forbes' most trusted companies.
Successful Treasury and Wealth Management Initiatives
Treasury management revenue grew significantly, and wealth management achieved record levels of assets under management of $6 billion.
Lowlights
Decreased Full Year Net Income
Full year net income, excluding restructuring and merger-related expenses, decreased to $146.4 million from $151.9 million due to the impact of a common stock raise.
Increased Non-Performing Loans
There was an uptick in non-performing loans and criticized and classified assets, although management expects resolution in the near term.
Loan Payoffs Expected to Increase
Commercial real estate payoffs may increase over time as more projects move into the secondary market, potentially impacting loan growth.
Company Guidance
During the WesBanco Fourth Quarter 2024 Earnings Call, key guidance highlights included the expectation of continued strong loan growth, anticipated to be mid-single-digit during 2025, supported by robust deposit growth. The company reported a $1 billion increase in loans fully funded by a $1 billion rise in deposits, with a compound annual loan growth rate of 9% over the past three years. The net interest margin improved to 3.03% and is projected to further benefit from CD repricing and expected Fed rate cuts. For Q4 2024, WesBanco achieved a net income of $47.6 million and a return on tangible common equity of 13%. The pending acquisition of Premier Financial is set to close in the first quarter, aiming to enhance positive momentum and provide future growth opportunities.WesBanco Corporate Events
M&A TransactionsShareholder MeetingsBusiness Operations and Strategy
WesBanco’s Proposed Merger with Premier Financial Corp
Neutral
Feb 10, 2025
WesBanco announced plans for investor presentations scheduled for the first quarter of 2025, showcasing their financials as of December 31, 2024. The company is also engaged in a proposed merger with Premier Financial Corp, approved by shareholders on December 11, 2024, aiming to integrate operations and realize cost savings and revenue synergies. However, the merger faces uncertainties such as potential integration challenges, regulatory approvals, and economic conditions.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.