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- **Record Q3 Earnings**: $90 million net income (excl. merger costs), up 68% YoY, with EPS of $0.94.
- **Strong Loan Growth**: 4.8% YoY and 2.2% QoQ loan growth, despite $235M CRE payoffs.
- **Efficiency Ratio Improvement**: 55% (down 10pts YoY) driven by cost control and Premier synergies.
- **Deposit Momentum**: $570M YoY core deposit growth, fully funding loan expansion.
- **Pipeline Strength**: $1.5B pipeline as of mid-Oct, with Knoxville LPO contributing 5%.
- **Margin Expansion**: 3-5bps quarterly, supported by FHLB borrowing reduction and Series B Preferred issuance.
- **Branch Optimization**: 27 closures to generate $6M annual savings, no new market closures.
- **Health Care Vertical**: $250M loans and $80M deposits in 6 months, targeting $300-500M annualized growth.

**【CEO Summary Section】**
- Reported third-quarter net income of $90 million, excluding merger-related charges, with EPS of $0.94, up 68% year-over-year.
- Loan growth of 4.8% year-over-year and 2.2% quarter-over-quarter, despite $235 million in CRE payoffs.
- Deposit growth of $570 million year-over-year, fully funding loan growth, with core deposit categories driving expansion.
- Efficiency ratio improved to 55%, down 10 percentage points year-over-year, reflecting cost control and operational excellence.
- Customer satisfaction scores rebounded to pre-conversion levels, exceeding industry averages at 80+ percentile.
- New loan production offices (LPOs) contributed $1.5 billion to the pipeline, with Knoxville LPO accounting for 5% of total pipeline.
- Planned 2026 loan growth expected in mid- to upper single digits, supported by strong pipelines and new market expansion.

**【CFO Financial Commentary】**
- GAAP net income of $81 million ($0.84 per share), with non-GAAP EPS of $0.94, up 150% year-over-year.
- Net interest margin of 3.53%, up 58 basis points year-over-year, driven by lower funding costs and higher loan yields.
- Fee income grew 52% year-over-year, with record highs in trust fees, service charges, and swap fees.
- Noninterest expense increased 46% year-over-year due to Premier acquisition and core deposit intangible amortization.
- Credit quality stable, with allowance for loan losses at 1.15% of total loans.
- Regulatory capital ratios well above 'well-capitalized' thresholds, with CET1 ratio expected to improve 15-20 basis points quarterly.

**【Q&A Highlights】**
- **Loan Growth & Pipeline**: CEO Jeff Jackson highlighted $2.3 billion in year-over-year loan production, with a $1.5 billion pipeline as of mid-October. Despite $800 million in annualized CRE payoffs, mid-single-digit loan growth expected for 2025.
- **Net Interest Margin**: CFO Dan Weiss expects 3-5 basis points of quarterly margin expansion, driven by Federal Home Loan Bank borrowing reduction and Series B Preferred Stock issuance.
- **Deposit Competition**: CFO noted deposit pricing normalization as higher-cost CDs mature, with core deposit growth outpacing industry trends.
- **Branch Optimization**: 27 financial centers to close by late January, generating $6 million annual pretax savings, with no new market closures.
- **Health Care Vertical**: New team closed $250 million in loans and $80 million in deposits in 6 months, with potential $300-500 million annualized growth.
- **Capital Management**: $230 million Series B Preferred Stock issuance to redeem $150 million Series A Preferred and $50 million Premier sub debt, improving capital ratios.
- **Buyback & Dividends**: Focus on capital build and dividends, with buybacks unlikely in the near term.

WesBanco, Inc. (WSBC) Q3 2025 Earnings Call Transcript

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