WesBanco's Q4 2024: Navigating Contradictions in Loan and Deposit Growth Amid Interest Rate Uncertainty

Financial Performance and Loan Growth:
- WesBanco reported net income excluding expenses available to common shareholders of $47.6 million and diluted earnings per share of $0.71, up 29% year-over-year.
- The company achieved strong loan growth of $1 billion, fully funded by deposit growth.
- This growth was driven by successful strategies in recruitment, product offerings, and market positioning.

Deposit Trends and Funding:
- Total deposits increased $1 billion year-over-year and $300 million quarter-over-quarter, with demand deposits representing 54% of total deposits.
- The growth in demand deposits and non-interest-bearing deposits was attributed to focused customer relationship building and underwriting strategies.

Net Interest Margin Improvement:
- The net interest margin improved both quarter-over-quarter and year-over-year to 3.03%, supported by higher loan and security yields and lower funding costs.
- This improvement was driven by strategic balance sheet management, including the paydown of higher-cost Federal Home Loan Bank borrowings.

Premier Financial Merger and Strategic Growth:
- WesBanco's pending acquisition of Premier Financial Corp., pending Fed and FDIC approvals, aims to accelerate positive momentum and enhance community engagement.
- The acquisition is part of WesBanco's strategy to strengthen its financial services organization and capitalize on growth opportunities.