WesBanco Stock: Loan Growth & Margin Expansion To Continue

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Jacqueline Nix

Earnings of WesBanco, Inc. (NASDAQ:WSBC) will most probably recover this year on the back of subdued loan growth. Moreover, the margin will continue to expand, albeit at a slower rate than last year. Recent and upcoming changes in the funding

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Data by YCharts

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Data by YCharts

Financial Position FY18 FY19 FY20 FY21 FY22 FY23E
Net Loans 7,607 10,216 10,603 9,612 10,585 11,015
Growth of Net Loans 20.8% 34.3% 3.8% (9.4)% 10.1% 4.1%
Other Earning Assets 3,200 3,353 3,612 5,151 4,040 4,162
Deposits 8,832 11,004 12,429 13,566 13,131 13,664
Borrowings and Sub-Debt 1,535 1,898 983 459 1,121 1,144
Common equity 1,979 2,594 2,612 2,549 2,282 2,292
Book Value Per Share ($) 40.4 46.1 38.8 40.3 38.4 38.1
Tangible BVPS ($) 21.6 25.7 21.5 22.1 19.2 19.1
Source: SEC Filings, Earnings Releases, Author’s Estimates(In USD million unless otherwise specified)

Income Statement FY18 FY19 FY20 FY21 FY22 FY23E
Net interest income 347 400 479 458 474 542
Provision for loan losses 8 11 108 (64) (2) 12
Non-interest income 100 117 128 133 117 112
Non-interest expense 265 312 355 353 357 389
Net income – Common Sh. 143 159 119 232 182 195
EPS – Diluted ($) 2.92 2.83 1.77 3.53 3.02 3.23
Source: SEC Filings, Earnings Releases, Author’s Estimates(In USD million unless otherwise specified)

FY19 FY20 FY21 FY22 Average
T. Book Value per Share ($) 25.7 21.5 22.1 19.2
Average Market Price ($) 38.1 25.3 34.7 35.3
Historical P/TB 1.48x 1.17x 1.57x 1.84x 1.52x
Source: Company Financials, Yahoo Finance, Author’s Estimates

P/TB Multiple 1.32x 1.42x 1.52x 1.62x 1.72x
TBVPS – Dec 2023 ($) 19.1 19.1 19.1 19.1 19.1
Target Price ($) 25.1 27.1 29.0 30.9 32.8
Market Price ($) 37.2 37.2 37.2 37.2 37.2
Upside/(Downside) (32.4)% (27.2)% (22.1)% (16.9)% (11.8)%
Source: Author’s Estimates

FY19 FY20 FY21 FY22 Average
Earnings per Share ($) 2.83 1.77 3.53 3.02
Average Market Price ($) 38.1 25.3 34.7 35.7
Historical P/E 13.5x 14.3x 9.8x 11.8x 12.3x
Source: Company Financials, Yahoo Finance, Author’s Estimates

P/E Multiple 10.3x 11.3x 12.3x 13.3x 14.3x
EPS – Dec 2023 ($) 3.23 3.23 3.23 3.23 3.23
Target Price ($) 33.4 36.6 39.9 43.1 46.3
Market Price ($) 37.2 37.2 37.2 37.2 37.2
Upside/(Downside) (10.2)% (1.5)% 7.2% 15.9% 24.6%
Source: Author’s Estimates

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