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WesBanco Inc (WSBC)
NASDAQ:WSBC
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WesBanco
(NASDAQ:WSBC)
Rating:70Outperform
Price Target:
$34.00
▲( 11.84% Upside)
Positive Factors
Mergers and Acquisitions
WSBC is actively pursuing growth opportunities through mergers and acquisitions, particularly in Virginia and Tennessee, which could enhance its market presence.
Net Interest Margin
The bank's net interest margin (NIM) is set to expand meaningfully due to favorable repricing conditions and improvements in loan yields.
Negative Factors
Earnings Forecast
There are adjustments, including lowering net interest income forecasts and reducing future EPS estimates due to tighter NIM and delayed acquisition closing dates.
WesBanco (WSBC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.91B
Dividend Yield4.78%
Average Volume (3M)564.59K
Price to Earnings (P/E)19.8
Beta (1Y)0.95
Revenue Growth17.74%
EPS Growth-35.93%
CountryUS
Employees3,205
SectorFinancial
Sector Strength82
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.66
Shares Outstanding95,672,200
10 Day Avg. Volume413,733
30 Day Avg. Volume564,589
Financial Highlights & Ratios
PEG Ratio1.42
Price to Book (P/B)0.70
Price to Sales (P/S)0.00
P/FCF Ratio14.71
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$37.25Price Target Upside22.53% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
WesBanco Business Overview & Revenue Model
Company DescriptionWesBanco, Inc. (WSBC) is a diversified financial services company headquartered in Wheeling, West Virginia. It operates through two primary segments: community banking and trust and investment services. The company provides a broad range of financial products and services including personal and business banking, wealth management, and insurance. WesBanco serves individuals, businesses, and governmental entities through a network of branches and ATMs across several states including West Virginia, Ohio, and Pennsylvania.
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 shows a strong financial profile with consistent revenue growth and operational efficiency. The conservative leverage and healthy equity position indicate financial stability. However, fluctuations in net income and return on equity suggest areas needing improvement.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
30.40
Price Trends
30.28
Positive
31.84
Negative
31.66
Negative
Market Momentum
0.33
Positive
45.96
Neutral
13.49
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 30.4 is below the 20-day moving average (MA) of 30.97, above the 50-day MA of 30.28, and below the 200-day MA of 31.66, indicating a neutral trend. The MACD of 0.33 indicates Positive momentum. The RSI at 45.96 is Neutral, neither overbought nor oversold. The STOCH value of 13.49 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 35 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 3 New Risks
1.
The market price of our common stock may decline in the future as a result of the Merger. Q4, 2024
2.
We are subject to business uncertainties and contractual restrictions DURING THE INTEGRATION PROCESS, which could adversely affect our business and operations. Q4, 2024
3.
We have incurred, and will incur, significant transaction-related costs in connection with the Merger. Q4, 2024
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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $2.96B | 15.55 | 10.91% | 3.27% | 14.34% | 12.98% | |
72 Outperform | $3.01B | 11.90 | 10.25% | 1.13% | 5.14% | ― | |
70 Outperform | $2.91B | 19.83 | 3.38% | 4.78% | 17.74% | -35.93% | |
69 Neutral | $2.79B | 12.62 | 6.63% | 7.10% | -0.05% | -15.66% | |
69 Neutral | $3.02B | 10.89 | 10.07% | 3.11% | 2.76% | -12.43% | |
66 Neutral | $2.94B | 12.75 | 9.11% | 4.41% | -0.47% | 5.97% | |
64 Neutral | $12.64B | 9.78 | 7.67% | 17015.08% | 12.23% | -6.02% |
* Financial Sector Average
Performance Comparison
WSBC
WesBanco
30.40
4.43
17.06%
CATY
Cathay General Bancorp
42.85
8.07
23.20%
CBU
Community Bank System
55.66
11.89
27.16%
FIBK
First Interstate Bancsystem
26.61
1.75
7.04%
WSFS
Wsfs Financial
52.76
9.44
21.79%
FHB
First Hawaiian
23.42
3.90
19.98%
WesBanco Earnings Call Summary
Earnings Call Date:Apr 29, 2025
(Q1-2025)
| % Change Since: 1.64%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Positive
The earnings call reflects a generally positive sentiment with strong organic growth and successful acquisition of Premier Financial, leading to improved financial metrics. However, challenges such as negative GAAP net income, increased provisions, and macroeconomic uncertainties present areas of concern.Q1-2025 Updates
Positive Updates
Successful Acquisition of Premier Financial
The acquisition of Premier Financial was successfully completed, elevating WesBanco into the ranks of the top 100 largest U.S. banks by asset size. Nearly 90% of Premier employees were retained, and the merger has received positive feedback.
Strong Organic Loan and Deposit Growth
First quarter organic loan growth was 8% year-over-year and 4% quarter-over-quarter annualized. Total deposits increased by $922 million year-over-year, with organic deposit growth, excluding CDs, at 5% year-over-year and nearly 11% quarter-over-quarter annualized.
Improved Financial Metrics
Net income, excluding merger and restructuring expenses, increased 54% from the prior year to $51.2 million. The net interest margin increased to 3.35%, and the efficiency ratio improved to 58.62%.
Positive Operating Leverage
The company delivered strong organic loan and deposit growth while achieving positive operating leverage. Pre-tax, pre-provision earnings grew by 25% year-over-year.
Negative Updates
Negative GAAP Net Income
Reported GAAP net income available to common shareholders was negative $11.5 million, or $0.15 per share, due to the day one provision for credit losses and merger-related expenses.
Increased Provision for Credit Losses
The first quarter provision for credit losses was $69 million, with $59 million related to the day one non-PCD provision. The allowance for credit losses increased the coverage ratio to 1.25% from 1.10% as of December 31, 2024.
Challenges in Managing Expenses
Non-interest expenses increased 17.2% year-over-year due to the addition of Premier's expense base and higher amortization of intangible assets. The company is operating two core systems until conversion, leading to higher equipment and software expenses.
Macroeconomic Uncertainty
The macroeconomic environment is extremely volatile due to trade war threats and tariffs, creating uncertainty for the company's performance.
Company Guidance
During the WesBanco First Quarter 2025 Earnings Conference Call, guidance provided highlighted several key metrics. The acquisition of Premier Financial was successfully completed, increasing WesBanco's standing among the top 100 largest U.S. banks by asset size. The company reported net income, excluding merger and restructuring expenses and the day-one provision on acquired loans, of $51.2 million, with diluted earnings per share increasing 18% year-over-year to $0.66. Net interest margin improved to 3.35%, with expectations to surpass 3.50% in the second quarter, while the efficiency ratio improved to 58.62%. Organic loan growth was robust at 8% year-over-year and 4% quarter-over-quarter annualized, supported by organic deposit growth of $922 million year-over-year. The commercial loan pipeline stood at approximately $1.3 billion, growing to $1.4 billion in the weeks after quarter-end. WesBanco's balance sheet grew significantly, with total assets increasing 54% year-over-year to $27.4 billion. The company anticipates mid-single-digit loan growth for 2025, despite the volatile macroeconomic environment, and maintains a focus on disciplined expense management to drive positive operating leverage.WesBanco Corporate Events
M&A TransactionsBusiness Operations and Strategy
WesBanco Highlights Q2 2025 Strategic Focus
Neutral
May 15, 2025
WesBanco has announced its Q2 2025 investor presentation, highlighting its strategic focus on disciplined growth and market presence. The company emphasizes its strong credit quality metrics, diversified business model, and long-term growth strategies. The merger with Premier Financial is expected to enhance its market positioning, although potential integration challenges and economic conditions could impact expected synergies and cost savings. WesBanco continues to leverage digital capabilities and maintain a focus on shareholder returns through effective capital management.
The most recent analyst rating on (WSBC) stock is a Buy with a $44.00 price target. To see the full list of analyst forecasts on WesBanco stock, see the WSBC Stock Forecast page.
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.