WesBanco's Q2 2025: Unraveling Contradictions in Loan Growth, Capital Deployment, and Integration Strategy

Strong Financial Performance and Growth:
- WesBanco reported net income, excluding merger and restructuring expenses, of $87.3 million and diluted earnings per share of $0.91, marking an 86% year-over-year increase.
- This growth was driven by a net interest margin improvement to 3.59%, an increase in fee income by 40% year-over-year, and solid organic loan growth.

Premier Acquisition and Integration:
- The successful conversion of Premier Bank and Trust department customer data systems contributed to WesBanco's strong second quarter.
- This seamless integration was facilitated by the collaboration of employees, ensuring exceptional service for customers and enhanced operational efficiency.

Deposit and Loan Growth:
- Total deposits increased by $800 million year-over-year, representing a 6% increase, while organic loan growth was 6% year-over-year and 3% quarter-over-quarter annualized.
- The growth in deposits was driven by the acquisition of Premier and organic growth, fully funding organic loan growth.

Margin and Cost Management:
- The second quarter net interest margin improved to 3.59%, with a deposit funding cost of 246 basis points, reflecting lower funding costs and purchase accounting accretion.
- WesBanco achieved significant savings from the Premier acquisition, contributing to an efficiency ratio improvement of 10 percentage points year-over-year.