WesBanco's third quarter results met revenue expectations but drew a negative market reaction, reflecting investor concerns despite adjusted earnings per share surpassing consensus. Management pointed to strong loan growth funded by deposit expansion, an improved efficiency ratio, and sharply higher fee income as operational highlights. CEO Jeffrey Jackson attributed the performance to successful integration of Premier, deposit campaign execution, and proactive cost controls. He noted, “Our third quarter results demonstrate the successful integration of Premier and continued operational discipline.” The bank also highlighted customer satisfaction rebounding quickly following the Premier acquisition, which management believes underscores the effectiveness of its integration strategy.
Is now the time to buy WSBC? Find out in our full research report (it’s free for active Edge members).
WesBanco (WSBC) Q3 CY2025 Highlights:
- Revenue: $261.6 million vs analyst estimates of $262 million (73.5% year-on-year growth, in line)
- Adjusted EPS: $0.94 vs analyst estimates of $0.88 (6.6% beat)
- Adjusted Operating Income: $115 million vs analyst estimates of $118.7 million (43.9% margin, 3.1% miss)
- Market Capitalization: $2.95 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From WesBanco’s Q3 Earnings Call
- Karl Shepard (RBC Capital Markets) asked about the balance between strong loan production and commercial real estate paydowns. CEO Jeffrey Jackson described paydowns as partly intentional and forecasted mid-single-digit loan growth despite these headwinds.
- Catherine Mealor (KBW) inquired about the impact of branch closures on expense trends and operating leverage. CFO Daniel Weiss indicated that closures provide a significant expense tailwind, supporting further improvements in the efficiency ratio.
- David Bishop (Homsey) questioned the scale and potential of the new healthcare vertical. Jackson estimated annualized healthcare loan production could reach $300–$500 million, with substantial deposit and fee generation.
- Russell Elliott Gunther (Stephens) sought clarity on capital management targets and the potential for share buybacks. Weiss emphasized ongoing capital build and indicated that buybacks are a low priority in favor of organic growth and dividends.
- Daniel Tamayo (Raymond James) asked about deposit competition and plans for future market expansion. Weiss reported deposit competition as stable, while Jackson reiterated a focus on organic growth through loan production offices rather than acquisitions.
Catalysts in Upcoming Quarters
In the quarters ahead, our analysts will closely monitor (1) the pace and sustainability of organic loan growth, especially within new markets and the healthcare vertical, (2) the realization of cost savings and efficiency gains from branch closures, and (3) the stability of core deposit funding as WesBanco continues to reduce reliance on higher-cost deposits. Progress in further optimizing the branch network and expanding loan production offices will also be important signposts.
WesBanco currently trades at $30.21, down from $31.35 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).
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