KBRA Affirms Ratings for Wesbanco, Inc.

KBRA affirms the senior unsecured debt rating of BBB+, the subordinated debt rating of BBB, the preferred shares shares rating of BBB-, and the short-term debt rating of K2 for Wheeling, West Virginia-based Wesbanco, Inc. (NASDAQ: WSBC) (“Wesbanco” or “the company”). In addition, KBRA affirms the deposit and senior unsecured debt ratings of A-, the subordinated debt rating of BBB+, and the short-term deposit and debt ratings of K2 for the bank subsidiary, WesBanco Bank, Inc. The Outlook for all long-term ratings is Stable.

Key Credit Considerations

The ratings and Outlook reflect WSBC's resilient earnings profile, supported by a diversified revenue base, disciplined expense management, strong pre-provision earnings, and historically favorable credit performance. Following below-trend profitability during 2023-2024, the company restored earnings to above historical levels, generating adjusted ROAA of approximately 1.3% in 1H26. Margin expansion from lower funding costs, purchase accounting accretion, securities restructuring, and funding optimization, together with accelerating commercial loan growth, operating leverage, and diversified fee income, support KBRA's expectation that WSBC can sustain ROAA above 1.2% through the cycle while organically building capital and absorbing normalized credit costs. WSBC's strong asset quality profile is supported by a granular, commercially diversified loan portfolio, disciplined underwriting, and an average net charge-off ratio of approximately 0.06% over the past five years. While criticized assets have increased as commercial credit conditions normalize, management views recent migration as borrower-specific rather than systemic, and KBRA expects losses to remain manageable. Potential credit losses remain well covered by a 1.12% allowance for credit losses and a 1.41% purchased credit discount on acquired Premier Financial Corp. loans, while declining investor CRE concentrations and historically low loss experience support the company's favorable credit profile. The company's funding profile remains a key rating strength, supported by a highly granular, relationship-based core deposit franchise representing approximately 92% of total funding, including 24% noninterest-bearing deposits. Funding costs continue to improve as higher-cost certificates of deposit mature and reprice, supporting margin expansion and accelerating commercial loan growth across the franchise, including targeted expansion markets of FL, TN, and Northern VA. Management continues to fund growth primarily through stable core deposits, supplemented by modest wholesale borrowings, maintaining a loan-to-core deposit ratio of approximately 92% at 1Q26. Core capitalization declined following the Premier Financial Corp. acquisition but has steadily rebuilt through retained earnings and remains comfortably above regulatory well-capitalized thresholds. At 2Q26, core capital ratios remain somewhat below similarly rated peers; management targets a CET1 ratio of 10.5% - 11.0%, reporting 10.7% as of June 30, 2026, balancing capital accumulation with organic loan growth in expansion markets. KBRA expects capital to continue strengthening through retained earnings, although above-average balance sheet growth may moderate the pace.

Rating Sensitivities

While a rating upgrade is not currently expected, materially higher levels of core profitability and core capitalization metrics could result in positive momentum if sustained over time. A rating downgrade is not expected. However, negative earnings trends, a material deterioration in asset quality, or capital metrics sustained below similarly rated peers could pressure the ratings.

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