WesBanco (WSBC) Tops Q4 EPS by 7c

WesBanco (NASDAQ: WSBC) reported Q4 EPS of $0.82, $0.07 better than the analyst estimate of $0.75. Revenue for the quarter came in at $101.77 million versus the consensus estimate of $100.84 million.

• Execution of well-defined long-term growth strategies combined with strong underlying fundamentals driving strong profitability
  • Record net income during 2018 of $143.1 million, or $157.2 million when excluding merger-related costs
    • 2018 net income was positively impacted by the passage of the "Tax Cuts and Jobs Act" in late-2017 which lowered the statutory Federal income tax rate for corporations to 21%, as compared to 35% in prior periods
  • Year-to-date income before provisions for credit losses and income taxes increased 15.2% year-over-year, or 25.7% when excluding merger-related costs
  • Strong core returns on average assets and tangible equity of 1.39% and 17.78%, respectively (non-GAAP measures)
• Sequential and year-over-year improvement in core net interest margin reflects the benefits of the FFKT and FTSB acquisitions and our core deposit funding advantage
• Solid expense management as demonstrated by a 184 basis point improvement in the year-to-date efficiency ratio to 54.6% (non-GAAP measure), despite the inclusion of FFKT's operating expenses since August 20, 2018
• Continued strength across key credit quality metrics reflective of strong legacy of credit and risk management
• Successful implementation of stated acquisition strategy to cross the $10 billion asset threshold
  • Filled-in the southern edge of franchise
  • Became a top ten financial institution in the state of Kentucky

"2018 was another successful year for WesBanco, as well as a year full of milestones," said Todd F. Clossin, President and Chief Executive Officer of WesBanco. "Solid execution and strong fundamentals drove record earnings of $143 million, or $157 million when excluding merger-related costs. We strengthened the franchise by expanding into new and diversified markets with strong demographics, and ensured top market share across our major markets. We remained diligent on expense management while continuing to make technology and staffing investments to support future growth – helping to drive our 2018 efficiency ratio to 54.6%. In addition, we stayed disciplined and balanced on lending decisions as our credit quality ratios have continued to improve to be at or near historic lows."

Mr. Clossin added, "We remain well-positioned for continued success due to our well-defined operational and growth strategies. Furthermore, we are excited about our opportunities for the upcoming year, and look forward to providing additional value to our customers and shareholders."

For earnings history and earnings-related data on WesBanco (WSBC) click here.

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