WesBanco Reports $11.5 Million Net Loss in Q1 2025 Due to Credit Loss Provision

WesBanco, Inc. reported a net loss of $11.5 million, or $(0.15) per share, for the first quarter of 2025, a significant decline from the net income of $33.2 million, or $0.56 per share, recorded in the same period of 2024. The loss was primarily attributed to a $59.4 million provision for credit losses related to the acquisition of Premier Financial Corp. (PFC), which closed on February 28, 2025. Excluding this provision and merger-related expenses, adjusted net income was $51.2 million, or $0.66 per share, compared to the previous year's $33.2 million.

Total assets surged by 46.7% to $27.4 billion as of March 31, 2025, driven largely by the PFC acquisition, which added approximately $7.9 billion in assets. Total loans increased by 47.5% to $18.7 billion, with $5.9 billion attributed to the acquired PFC loans. Deposits also rose significantly, up 50.6% to $21.3 billion, reflecting the addition of PFC's deposit base and organic growth efforts. The company reported a total allowance for credit losses of $240.1 million, representing 1.25% of total portfolio loans.

WesBanco's non-interest income increased by 13.2% year-over-year to $34.7 million, bolstered by higher service charges on deposits, bank-owned life insurance income, and digital banking income. The increase in service charges was particularly notable, rising by 26.6% due to the integration of PFC and enhanced fee income from new products. However, net securities losses and a decrease in net swap fee income partially offset these gains.

The company’s non-interest expenses rose by 37.8% to $134.0 million, primarily due to $20.0 million in merger-related costs and the incorporation of PFC's operational expenses. Salaries and wages increased by 13.0% as a result of adding approximately 900 employees from the acquisition. WesBanco's effective tax rate for the quarter was 7.0%, a decrease from 17.7% in the prior year, reflecting the net loss incurred in the current quarter.

Looking ahead, WesBanco anticipates that the integration of PFC will yield operational synergies and enhance its market presence, particularly in Ohio and Michigan. The company remains focused on managing credit risk and maintaining liquidity, with a robust capital position that exceeds regulatory requirements. The outlook for the remainder of 2025 will depend on the successful integration of PFC and the overall economic environment, including interest rate fluctuations and credit quality trends.