October 18, 2021

error page

Business is my step

WesBanco Announces Fourth Quarter 2020 Financial Results

23 min read

WHEELING, W.Va., Jan. 26, 2021 /PRNewswire/ — WesBanco, Inc. (“WesBanco”) (NASDAQ: WSBC), a diversified, multi-state bank holding company, today announced net income and related earnings per share for the three and twelve months ended December 31, 2020.  Net income available to common shareholders for the three months ended December 31, 2020 was $50.2 million, with diluted earnings per share of $0.75, compared to $36.4 million and $0.60 per diluted share, respectively, for the fourth quarter of 2019.  For the twelve months ended December 31, 2020, reflecting the impact from the 2020 adoption of the new Current Expected Credit Losses (“CECL”) accounting standard, net income available to common shareholders was $119.4 million, or $1.77 per diluted share, compared to $158.9 million, or $2.83 per diluted share, for the 2019 period.  Net income available to common shareholders excluding after-tax restructuring and merger-related expenses for the three months ended December 31, 2020, was $50.6 million, or $0.76 per diluted share, as compared to $45.5 million and $0.75 per diluted share, respectively, in the prior year quarter (non-GAAP measures).  On the same basis, net income available to common shareholders for the twelve months ended December 31, 2020 was $127.1 million, or $1.88 per diluted share, as compared to $171.8 million, or $3.06 per diluted share, in the prior year period (non-GAAP measures).



For the Three Months Ended December 31,

For the Twelve Months Ended December 31,

2020

2019

2020

2019

(unaudited, dollars in thousands,
except per share amounts)

Net Income

Diluted
Earnings
Per Share

Net Income

Diluted
Earnings
Per Share

Net Income

Diluted
Earnings
Per Share

Net
Income

Diluted
Earnings
Per Share

Net income available to common
shareholders (Non-GAAP)(1)

$      50,593

$       0.76

$      45,478

$       0.75

$    127,083

$       1.88

$    171,827

$       3.06

Less: After tax restructuring and merger-
related expenses(2)

(383)

(0.01)

(9,102)

(0.15)

(7,683)

(0.11)

(12,954)

(0.23)

Net income available to common
shareholders (GAAP)

$      50,210

$       0.75

$      36,376

$       0.60

$    119,400

$       1.77

$    158,873

$       2.83

(1)See non-GAAP financial measures for additional information relating to the calculation of these items.

(2)For 2020, after tax merger-related expenses totaled $5.1 million, and after tax restructuring expenses from financial center optimization totaled $2.6 million.

On November 22, 2019, WesBanco consummated the merger with Old Line Bancshares, Inc. (“OLBK”), a bank holding company headquartered in Bowie, MD with approximately $3.0 billion in assets, excluding goodwill.  Financial results for OLBK have been included in WesBanco’s results from the merger consummation date.

WesBanco believes that pre-tax, pre-provision income (non-GAAP measure) provides a more comparable year-over-year measure as it removes the impact of the new CECL accounting standard implemented earlier this year.  For the three months ended December 31, 2020, pre-tax, pre-provision income, excluding restructuring and merger-related expenses, increased 14.2% year-over-year to $64.8 million compared to $56.8 million for the prior period.  On the same basis, pre-tax, pre-provision income, for the twelve months ended December 31, 2020, increased 18.9% year-over-year to $262.5 million compared to $220.8 million last year.  In addition, on the same basis, the return on average assets was 1.56% for the three month and 1.60% for the twelve month periods ending December 31, 2020.  WesBanco believes that these non-GAAP financial measures are useful to investors as they enhance investors’ understanding of the Company’s business and performance.

Financial and operational highlights during the quarter ended December 31, 2020:

  • WesBanco is a well-capitalized financial institution with solid liquidity and a strong balance sheet
  • Strong year-over-year growth in pre-tax, pre-provision income (non-GAAP measure) for both the quarter and annual periods
  • Total loan growth was 5.1% year-over-year, driven by WesBanco’s support of small businesses impacted by the pandemic
  • Total loan growth includes nearly 6,850 loans remaining from the first rounds of the Small Business Administration’s Payroll Protection Program (“SBA PPP”) totaling approximately $726.3 million
  • Commercial & industrial loan growth was 2.2% year-over-year, excluding SBA PPP loans
  • Deposit growth, excluding certificates of deposit, was 20.8% year-over-year, driven by growth in demand deposits
  • Trust assets under management totaled a record $5.0 billion, driven by both market appreciation and organic growth
  • Continued expense management demonstrated by a year-to-date efficiency ratio of 56.38% (non-GAAP measure)
  • Key credit quality metrics such as non-performing assets, past due loans, and net loan charge-offs, as percentages of total portfolio loans, have remained at low levels and favorable to peer bank averages, those with total assets between $10 billion and $25 billion (based upon the four quarters prior to the current earnings period)
  • Subsequent to year-end, on January 22, 2021, WesBanco Bank completed its financial center optimization strategy announced during August 2020 through the consolidation of 21 financial centers into nearby locations and the conversion of one location to drive-up only
  • Todd F. Clossin, President and Chief Executive Officer of WesBanco, commented, “2020 was a successful year for WesBanco, as measured by the more than ten thousand individuals, families, businesses, and non-profits we assisted as they navigated through the pandemic.  I am extremely proud of how our employees have responded this past year, from keeping our financial centers open throughout, working around the clock closing PPP loans to our commercial customers, and providing charitable donations to support those in need.  These actions speak loudly to our community bank roots.” 

    Mr. Clossin added, “Solid execution on our well-defined, long-term strategies allowed us to generate record annual pre-tax, pre-provision earnings of $263 million, when excluding restructuring and merger-related costs, during 2020.  In addition, we remained a well-capitalized financial institution, completed a preferred stock offering during August 2020 that was over-subscribed, and increased our allowance for credit losses.  Through our diversified growth engines supported by our strong teams and a continued focus on operating costs, we believe we are well-positioned for long-term success, and remain positive about our opportunities for the upcoming year.”

    Financial Center Optimization Strategy
    Reflecting the current operating environment and increased utilization of digital services, WesBanco previously announced a plan to accelerate its financial center optimization strategy across Indiana, Kentucky, Ohio, Pennsylvania, and West Virginia.  On October 30, two centers were consolidated and another converted to drive-up only.  Recently, on January 22, 2021, 21 additional centers were consolidated into nearby locations and another converted to drive-up only.  The anticipated cost savings of approximately $6.0 to $6.5 million, approximately half of which will be utilized for growth and digital infrastructure initiatives, remain on plan to be phased-in during the first half of 2021.

    Balance Sheet
    Portfolio loans of $10.8 billion as of December 31, 2020 increased 5.1% when compared to the prior year period due primarily to participation in the SBA PPP.  During the fourth quarter, approximately 331 customers applied for and received forgiveness of their SBA PPP loans totaling $113.0 million.

    Total deposits increased 13.0% year-over-year to $12.4 billion due primarily to CARES Act stimulus funds received and increased personal savings, which more than offset a $0.4 million reduction in certificates of deposit.  Deposits, excluding CDs, increased 20.8% year-over-year, driven by a 25.8% increase in total demand deposits, which represent approximately 56% of total deposits.

    Credit Quality
    As of December 31, 2020, total loans past due, non-performing loans, and non-performing assets as percentages of the portfolio and total assets have remained relatively low and consistent throughout the last five quarters.  In addition, annualized net loan charge-offs to average loans remained low for the quarter and year-to-date periods at two and six basis points, respectively.  Pandemic-related loan deferrals, under the CARES Act, have declined to $171.1 million, or 1.6% of total loans, as of December 31, with approximately $150 million of this total related to the hospitality industry.

    Reflecting improved macroeconomic factors in the CECL calculation, the allowance for credit losses specific to total portfolio loans at December 31, 2020 was $185.8 million, or 1.72% of total loans; or, when excluding SBA PPP loans, 1.85% of total portfolio loans.  Excluded from the allowance for credit losses and related coverage ratio are fair market value adjustments on previously acquired loans representing 0.37% of total loans.  The provision for credit losses was a negative $0.2 million for the quarter ended December 31, 2020.

    Criticized and classified loan balances increased to 4.59% of total portfolio loans due to the fourth quarter net downgrades of $133.3 million of hospitality loans as a result of reduced occupancy and debt service coverage from the current pandemic-driven environment.  These downgraded loans may have received current or prior CARES Act qualifying loan deferrals, and had an average loan-to-value of approximately 60%, the majority of which are pre-pandemic, as well as strong guarantor support.  The Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (“Economic Aid Act”), which became law on December 27, 2020, added a new Second Draw PPP loan program that provides additional assistance to borrowers who previously received a SBA PPP loan.  Included in this new authorization, hotels may be eligible for a forgivable loan up to three and one half times their average monthly payroll.

    Net Interest Margin and Income
    The net interest margin of 3.31% for the fourth quarter of 2020 was consistent with the third quarter’s 3.31% but, decreased 24 basis points year-over-year, primarily due to the lower interest rate environment from the five decreases in the Federal Reserve Board’s target federal funds rate, totaling 225 basis points, from July 2019 through March 2020, as well as a flattening of the yield curve.  Reflecting the significantly lower interest rate environment, we aggressively reduced our deposit rates throughout the year, which helped to lower deposit funding costs 40 basis points year-over-year to 23 basis points for the fourth quarter of 2020.  Further, we lowered the cost of borrowings 29 basis points year-over-year as we reduced fourth quarter average FHLB borrowings by $0.5 billion, or 41.8%, year-over-year to $0.7 billion, which have a remaining average life of less than one year.  Accretion from acquisitions benefited the fourth quarter net interest margin by 16 basis points, as compared to 22 basis points in the prior year period and 18 basis points during the third quarter of 2020.  Lastly, the funding of SBA PPP loans benefited the fourth quarter of 2020 net interest margin by a net two basis points, and will positively impact the net interest margin as the loans are forgiven during the next couple of quarters.

    Net interest income increased $12.7 million, or 11.9%, during the fourth quarter of 2020, as compared to the same quarter of 2019, reflecting a 19.8% increase in average total earning assets driven by the OLBK acquisition, partially offset by the lower loan yields due to repricing of existing loans and lower new offered rates in the current market environment, and lower related accretion from purchase accounting.  For the twelve months ended December 31, 2020, net interest income increased $79.6 million, or 19.9%, despite an overall lower net interest margin, due to higher average total earning assets as discussed for the three-month period comparison, primarily from the OLBK acquisition.

    Non-Interest Income
    For the fourth quarter of 2020, non-interest income of $32.7 million increased $1.9 million, or 6.1%, from the fourth quarter of 2019, driven primarily by mortgage banking income, which was partially offset by lower service charges on deposits.  Reflecting the low interest rate environment and organic growth, mortgage banking fees increased $2.5 million, or 84.0%, compared to the prior year period, as residential mortgage origination dollar volume increased approximately 75% year-over-year, with roughly 65% of those originations sold into the secondary market.  Service charges on deposits were lower due to higher consumer deposits associated with CARES Act stimulus and lower general consumer spending, resulting in fewer eligible account fees. 

    Non-interest income, for the twelve months ended December 31, 2020, increased $11.5 million, or 9.8%, to $128.2 million due primarily to the items discussed above, as well as higher commercial customer loan swap-related income and lower electronic banking fees due to the limitation on interchange fees for debit card processing.  Loan swap-related income for the year was $6.1 million, an increase of $2.7 million year-over-year, reflecting commercial loan customer demand in the current rate environment.  The limitation on interchange fees, due to the Durbin amendment in the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”), which took effect for WesBanco during the third quarter of 2019, negatively impacted fee income by approximately $5.4 million as compared to the prior year.

    Non-Interest Expense
    Total operating expenses continued to be well-controlled through company-wide efforts to effectively manage discretionary costs, employee headcount, and marketing expenses.  Despite an approximate 25% increase in size due to the OLBK acquisition, as well as the significantly lower interest rate environment, these strong efforts are demonstrated by efficiency ratios of 57.06% and 56.38% for the three-month and twelve-month periods ending December 31, 2020, respectively.  Excluding restructuring and merger-related expenses, non-interest expense for the three months ended December 31, 2020 increased $6.6 million, or 8.1%, to $87.6 million compared to the prior year period, primarily due to additional staffing and financial center locations from the OLBK acquisition and the mid-year annual salary increases, partially offset by discretionary cost controls resulting from the pandemic and planned cost savings from the OLBK merger. 

    On a similar basis, non-interest expense during the twelve months of 2020 increased $49.3 million, or 16.7%, compared to the prior year period, primarily due to the reasons as discussed for the three-month period.  In addition, FDIC insurance expense increased $5.8 million, or 295.4%, due to a higher assessment rate associated with our larger asset level, as well as the recording of a $3.1 million assessment credit in the prior year period. 

    Capital
    WesBanco continues to maintain what we believe are strong regulatory capital ratios, enhanced by a $150 million preferred stock capital raise during August 2020, as both consolidated and bank-level regulatory capital ratios are well above the applicable “well-capitalized” standards promulgated by bank regulators and the BASEL III capital standards.  At December 31, 2020, Tier I leverage was 10.51%, Tier I risk-based capital ratio was 14.72%, common equity Tier 1 capital ratio (“CET 1”) was 13.40%, and total risk-based capital was 17.57%. 

    Conference Call and Webcast
    WesBanco will host a conference call to discuss the Company’s financial results for the fourth quarter of 2020 at 10:00 a.m. ET on Wednesday, January 27, 2021.  Interested parties can access the live webcast of the conference call through the Investor Relations section of the Company’s website, www.wesbanco.com.  Participants can also listen to the conference call by dialing 888-347-6607, 855-669-9657 for Canadian callers, or 412-902-4290 for international callers, and asking to be joined into the WesBanco call.

    A replay of the conference call will be available by dialing 877-344-7529, 855-669-9658 for Canadian callers, or 412-317-0088 for international callers, and providing the access code of 10150966.  The replay will begin at approximately 12:00 p.m. ET on January 27, and end at 12 a.m. ET on February 10.  An archive of the webcast will be available for one year on the Investor Relations section of the Company’s website (www.wesbanco.com).

    Forward-Looking Statements
    Forward-looking statements in this report relating to WesBanco’s plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  The information contained in this report should be read in conjunction with WesBanco’s Form 10-K for the year ended December 31, 2019 and documents subsequently filed by WesBanco with the Securities and Exchange Commission (“SEC”), including WesBanco’s Form 10-Q for the quarters ended March 31, June 30, and September 30, 2020, which are available at the SEC’s website, www.sec.gov or at WesBanco’s website, www.WesBanco.com.  Investors are cautioned that forward-looking statements, which are not historical fact, involve risks and uncertainties, including those detailed in WesBanco’s most recent Annual Report on Form 10-K filed with the SEC under “Risk Factors” in Part I, Item 1A and under “Risk Factors” in Part II, Item 1A of WesBanco’s March 31, June 30, and September 30, 2020 Quarterly Reports on Form 10-Q.  Such statements are subject to important factors that could cause actual results to differ materially from those contemplated by such statements, including, without limitation, the effects of changing regional and national economic conditions including the effects of the COVID-19 pandemic; changes in interest rates, spreads on earning assets and interest-bearing liabilities, and associated interest rate sensitivity; sources of liquidity available to WesBanco and its related subsidiary operations; potential future credit losses and the credit risk of commercial, real estate, and consumer loan customers and their borrowing activities; actions of the Federal Reserve Board, the Federal Deposit Insurance Corporation, the SEC, the Financial Institution Regulatory Authority, the Municipal Securities Rulemaking Board, the Securities Investors Protection Corporation, and other regulatory bodies; potential legislative and federal and state regulatory actions and reform, including, without limitation, the impact of the implementation of the Dodd-Frank Act; adverse decisions of federal and state courts; fraud, scams and schemes of third parties; cyber-security breaches; competitive conditions in the financial services industry; rapidly changing technology affecting financial services; marketability of debt instruments and corresponding impact on fair value adjustments; and/or other external developments materially impacting WesBanco’s operational and financial performance.  WesBanco does not assume any duty to update forward-looking statements.

    Non-GAAP Financial Measures
    In addition to the results of operations presented in accordance with Generally Accepted Accounting Principles (GAAP), WesBanco’s management uses, and this presentation contains or references, certain non-GAAP financial measures, such as pre-tax pre-provision income, tangible common equity/tangible assets; net income excluding after-tax restructuring and merger-related expenses; efficiency ratio; return on average assets; and return on average tangible equity.  WesBanco believes these financial measures provide information useful to investors in understanding our operational performance and business and performance trends which facilitate comparisons with the performance of others in the financial services industry. Although WesBanco believes that these non-GAAP financial measures enhance investors’ understanding of WesBanco’s business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. The non-GAAP financial measures contained therein should be read in conjunction with the audited financial statements and analysis as presented in the Annual Report on Form 10-K as well as the unaudited financial statements and analyses as presented in the Quarterly Reports on Forms 10-Q for WesBanco and its subsidiaries, as well as other filings that the company has made with the SEC.

    About WesBanco, Inc.
    Founded in 1870, WesBanco, Inc. (www.wesbanco.com) is a diversified and balanced financial services company that delivers large bank capabilities with a community bank feel.  Our distinct long-term growth strategies are built upon unique sustainable advantages permitting us to span six states with meaningful market share.  Built upon our ‘Better Banking Pledge’, our customer-centric service culture is focused on growing long-term relationships by pledging to serve all personal and business customer needs efficiently and effectively.  In addition to a full range of online and mobile banking options and a full-suite of commercial products and services, WesBanco provides trust, wealth management, securities brokerage, and private banking services through our century-old Trust and Investment Services department, with approximately $5.0 billion of assets under management (as of December 31, 2020).  WesBanco’s banking subsidiary, WesBanco Bank, Inc., operates 212 financial centers in the states of Indiana, Kentucky, Maryland, Ohio, Pennsylvania, and West Virginia.  Additionally, WesBanco operates an insurance agency, WesBanco Insurance Services, Inc., and a full service broker/dealer, WesBanco Securities, Inc.

    WESBANCO, INC.

    Consolidated Selected Financial Highlights

    Page 5

    (unaudited, dollars in thousands, except shares and per share amounts)

    For the Three Months Ended

    For the Twelve Months Ended

    STATEMENT OF INCOME

    December 31,

    December 31,

    Interest and dividend income

    2020

    2019

    % Change

    2020

    2019

    % Change

    Loans, including fees

    $          114,582

    $             105,879

    8.2

    $          465,677

    $             393,166

    18.4

    Interest and dividends on securities:

    Taxable 

    10,892

    16,586

    (34.3)

    53,594

    65,648

    (18.4)

    Tax-exempt

    4,059

    4,563

    (11.0)

    16,999

    20,006

    (15.0)

    Total interest and dividends on securities

    14,951

    21,149

    (29.3)

    70,593

    85,654

    (17.6)

    Other interest income 

    945

    1,281

    (26.2)

    5,007

    5,433

    (7.8)

              Total interest and dividend income

    130,478

    128,309

    1.7

    541,277

    484,253

    11.8

    Interest expense

    Interest bearing demand deposits

    1,099

    4,054

    (72.9)

    7,069

    16,805

    (57.9)

    Money market deposits

    678

    2,143

    (68.4)

    4,616

    8,024

    (42.5)

    Savings deposits

    280

    935

    (70.1)

    1,802

    2,995

    (39.8)

    Certificates of deposit

    2,797

    3,800

    (26.4)

    13,562

    15,631

    (13.2)

    Total interest expense on deposits

    4,854

    10,932

    (55.6)

    27,049

    43,455

    (37.8)

    Federal Home Loan Bank borrowings

    3,719

    7,279

    (48.9)

    24,701

    26,548

    (7.0)

    Other short-term borrowings

    275

    1,009

    (72.7)

    1,729

    5,401

    (68.0)

    Subordinated debt and junior subordinated debt 

    1,918

    2,125

    (9.7)

    8,318

    8,945

    (7.0)

    Total interest expense

    10,766

    21,345

    (49.6)

    61,797

    84,349

    (26.7)

    Net interest income 

    119,712

    106,964

    11.9

    479,480

    399,904

    19.9

    Provision for credit losses

    (209)

    1,824

     NM 

    107,741

    11,198

     NM 

    Net interest income after provision for credit losses

    119,921

    105,140

    14.1

    371,739

    388,706

    (4.4)

    Non-interest income

    Trust fees

    6,754

    6,699

    0.8

    26,335

    26,579

    (0.9)

    Service charges on deposits

    5,671

    7,171

    (20.9)

    21,943

    26,974

    (18.7)

    Electronic banking fees

    4,424

    4,336

    2.0

    17,524

    22,634

    (22.6)

    Net securities brokerage revenue

    1,402

    1,393

    0.6

    6,189

    6,990

    (11.5)

    Bank-owned life insurance

    1,750

    1,882

    (7.0)

    7,359

    5,913

    24.5

    Mortgage banking income

    5,442

    2,957

    84.0

    22,736

    8,219

    176.6

    Net securities gains

    691

    520

    32.9

    4,268

    4,320

    (1.2)

    Net gain on other real estate owned and other assets

    18

    61

    (70.5)

    103

    732

    (85.9)

    Other income

    6,553

    5,819

    12.6

    21,728

    14,355

    51.4

    Total non-interest income

    32,705

    30,838

    6.1

    128,185

    116,716

    9.8

    Non-interest expense

    Salaries and wages

    39,140

    36,984

    5.8

    153,166

    132,485

    15.6

    Employee benefits

    10,608

    9,894

    7.2

    41,723

    39,313

    6.1

    Net occupancy

    6,771

    6,162

    9.9

    27,580

    22,505

    22.6

    Equipment 

    6,810

    5,570

    22.3

    24,801

    20,494

    21.0

    Marketing

    1,675

    2,059

    (18.6)

    5,957

    6,062

    (1.7)

    FDIC insurance 

    1,278

    668

    91.3

    7,734

    1,956

    295.4

    Amortization of intangible assets

    3,327

    2,916

    14.1

    13,411

    10,340

    29.7

    Restructuring and merger-related expense

    484

    11,522

    (95.8)

    9,725

    16,397

    (40.7)

    Other operating expenses  

    17,976

    16,781

    7.1

    70,748

    62,656

    12.9

    Total non-interest expense

    88,069

    92,556

    (4.8)

    354,845

    312,208

    13.7

    Income before provision for income taxes

    64,557

    43,422

    48.7

    145,079

    193,214

    (24.9)

    Provision for income taxes 

    11,703

    7,046

    66.1

    23,035

    34,341

    (32.9)

    Net Income

    52,854

    36,376

    45.3

    122,044

    158,873

    (23.2)

    Preferred stock dividends

    2,644

    100.0

    2,644

    100.0

    Net income available to common shareholders

    $             50,210

    $               36,376

    38.0

    $          119,400

    $             158,873

    (24.8)

    Taxable equivalent net interest income

    $          120,790

    $          108,177

    11.7

    $          483,999

    $          405,222

    19.4

    Per common share data

    Net income per common share – basic

    $                 0.75

    $                   0.60

    25.0

    $                 1.78

    $                   2.83

    (37.1)

    Net income per common share – diluted

    0.75

    0.60

    25.0

    1.77

    2.83

    (37.5)

    Net income per common share – diluted, excluding certain items (1)(2)

    0.76

    0.75

    1.3

    1.88

    3.06

    (38.6)

    Dividends declared

    0.32

    0.31

    3.2

    1.28

    1.24

    3.2

    Book value (period end)

    38.84

    38.24

    1.6

    38.84

    38.24

    1.6

    Tangible book value (period end) (1)

    21.75

    21.55

    0.9

    21.75

    21.55

    Average common shares outstanding – basic

    67,238,005

    60,461,325

    11.2

    67,260,796

    56,108,084

    19.9

    Average common shares outstanding – diluted

    67,304,442

    60,562,366

    11.1

    67,310,584

    56,214,364

    19.7

    Period end common shares outstanding

    67,254,706

    67,824,428

    (0.8)

    67,254,706

    67,824,428

    (0.8)

    Period end preferred shares outstanding

    150,000

    100.0

    150,000

    100.0

    (1) See non-GAAP financial measures for additional information relating to the calculation of this item.

    (2) Certain items excluded from the calculation consist of after-tax restructuring and merger-related expenses.

    NM – Not Meaningful

     

    WESBANCO, INC.

    Consolidated Selected Financial Highlights

    Page 6

    (unaudited, dollars in thousands)

    Selected ratios

    For the Twelve Months Ended

    December 31,

    2020

    2019

    % Change

    Return on average assets

    0.73

    %

    1.24

    %

    (41.13)

    %

    Return on average assets, excluding

        after-tax restructuring and merger-related expenses (1)

    0.77

    1.34

    (42.54)

    Return on average equity

    4.50

    7.49

    (39.92)

    Return on average equity, excluding

        after-tax restructuring and merger-related expenses (1)

    4.79

    8.11

    (40.94)

    Return on average tangible equity (1)

    8.61

    14.01

    (38.54)

    Return on average tangible equity, excluding 

        after-tax restructuring and merger-related expenses (1)

    9.12

    15.10

    (39.60)

    Return on average tangible common equity (1)

    8.94

    14.01

    (36.19)

    Return on average tangible common equity, excluding 

        after-tax restructuring and merger-related expenses (1)

    9.47

    15.10

    (37.28)

    Yield on earning assets (2) 

    3.80

    4.37

    (13.04)

    Cost of interest bearing liabilities

    0.63

    1.05

    (40.00)

    Net interest spread (2)

    3.17

    3.32

    (4.52)

    Net interest margin (2)

    3.37

    3.62

    (6.91)

    Efficiency (1) (2)

    56.38

    56.68

    (0.53)

    Average loans to average deposits

    91.66

    88.59

    3.47

    Annualized net loan charge-offs/average loans

    0.06

    0.09

    (33.33)

    Effective income tax rate 

    15.88

    17.77

    (10.64)

    For the Quarter Ended

    Dec. 31,

    Sept. 30,

    June 30,

    Mar. 31,

    Dec. 31,

    2020

    2020

    2020

    2020

    2019

    Return on average assets

    1.21

    %

    0.98

    %

    0.11

    %

    0.60

    %

    1.04

    %

    Return on average assets, excluding

        after-tax restructuring and merger-related expenses (1)

    1.22

    1.05

    0.12

    0.70

    1.30

    Return on average equity

    7.28

    6.17

    0.69

    3.63

    6.20

    Return on average equity, excluding

        after-tax restructuring and merger-related expenses (1)

    7.33

    6.60

    0.75

    4.26

    7.75

    Return on average tangible equity (1)

    13.18

    11.56

    1.98

    7.07

    11.53

    Return on average tangible equity, excluding 

        after-tax restructuring and merger-related expenses (1)

    13.28

    12.31

    2.08

    8.18

    14.24

    Return on average tangible common equity (1)

    14.49

    12.21

    1.98

    7.07

    11.53

    Return on average tangible common equity, excluding 

    .

        after-tax restructuring and merger-related expenses (1)

    14.60

    13.00

    2.08

    8.18

    14.24

    Yield on earning assets (2) 

    3.61

    3.66

    3.75

    4.19

    4.25

    Cost of interest bearing liabilities

    0.45

    0.53

    0.63

    0.91

    0.99

    Net interest spread (2)

    3.16

    3.13

    3.12

    3.28

    3.26

    Net interest margin (2)

    3.31

    3.31

    3.32

    3.54

    3.55

    Efficiency (1) (2) 

    57.06

    55.23

    55.57

    57.69

    58.29

    Average loans to average deposits

    89.64

    90.88

    91.87

    94.61

    90.78

    Annualized net loan charge-offs and recoveries /average loans

    0.02

    (0.00)

    0.07

    0.18

    0.20

    Effective income tax rate 

    18.13

    15.66

    0.93

    13.40

    16.23

    Trust assets, market value at period end

    $     5,025,565

    $        4,649,054

    $        4,487,042

    $        4,082,141

    $        4,719,966

    (1) See non-GAAP financial measures for additional information relating to the calculation of this item.

    (2) The yield on earning assets, net interest margin, net interest spread and efficiency ratios are presented on a fully 

        taxable-equivalent (FTE) and annualized basis. The FTE basis adjusts for the tax benefit of income on certain tax-exempt 

       loans and investments.   WesBanco believes this measure to be the preferred industry measurement of net interest income and

       provides a relevant comparison between taxable and non-taxable amounts.

     

    WESBANCO, INC.

    Consolidated Selected Financial Highlights

    Page 7

    (unaudited, dollars in thousands, except shares)

    % Change

    Balance sheets

    December 31,

    September 30,

    September 30, 2020

    Assets

    2020

    2019

    % Change

    2020

    to December 31, 2020

    Cash and due from banks

    $           184,361

    $        182,905

    0.8

    $              215,982

    (14.6)

    Due from banks – interest bearing

    721,086

    51,891

     NM 

    544,284

    32.5

    Securities:

    Equity securities, at fair value

    13,047

    12,343

    5.7

    12,516

    4.2

    Available-for-sale debt securities, at fair value

    1,978,136

    2,393,558

    (17.4)

    2,045,924

    (3.3)

    Held-to-maturity debt securities (fair values of $768,183; $874,523 

    and $782,401, respectively)

    731,212

    851,753

    (14.2)

    746,767

    (2.1)

    Allowance for credit losses, held-to-maturity debt securities

    (326)

    (100.0)

    (461)

    29.3

    Net held-to-maturity debt securities

    730,886

    851,753

    (14.2)

    746,306

    (2.1)

    Total securities

    2,722,069

    3,257,654

    (16.4)

    2,804,746

    (2.9)

    Loans held for sale

    168,378

    43,013

    291.5

    134,151

    25.5

    Portfolio loans:

    Commercial real estate

    5,705,392

    5,725,008

    (0.3)

    5,708,648

    (0.1)

    Commercial and industrial

    2,407,438

    1,644,699

    46.4

    2,507,235

    (4.0)

    Residential real estate 

    1,720,961

    1,873,647

    (8.1)

    1,798,019

    (4.3)

    Home equity

    646,387

    649,678

    (0.5)

    647,052

    (0.1)

    Consumer 

    309,055

    374,953

    (17.6)

    328,592

    (5.9)

    Total portfolio loans, net of unearned income

    10,789,233

    10,267,985

    5.1

    10,989,546

    (1.8)

    Allowance for credit losses – loans  (1)

    (185,827)

    (52,429)

    (254.4)

    (185,109)

    (0.4)

    Net portfolio loans

    10,603,406

    10,215,556

    3.8

    10,804,437

    (1.9)

    Premises and equipment, net

    249,421

    261,014

    (4.4)

    248,491

    0.4

    Accrued interest receivable

    66,790

    43,648

    53.0

    65,023

    2.7

    Goodwill and other intangible assets, net

    1,163,091

    1,149,153

    1.2

    1,165,566

    (0.2)

    Bank-owned life insurance

    306,038

    299,516

    2.2

    304,288

    0.6

    Other assets

    240,970

    215,762

    11.7

    265,172

    (9.1)

    Total Assets

    $    16,425,610

    $ 15,720,112

    4.5

    $       16,552,140

    (0.8)

    Liabilities

    Deposits:

    Non-interest bearing demand

    $        4,070,835

    $      3,178,270

    28.1

    $           4,073,305

    (0.1)

    Interest bearing demand

    2,839,536

    2,316,855

    22.6

    2,633,601

    7.8

    Money market

    1,685,927

    1,518,314

    11.0

    1,619,410

    4.1

    Savings deposits

    2,214,565

    1,934,647

    14.5

    2,167,597

    2.2

    Certificates of deposit

    1,618,510

    2,055,920

    (21.3)

    1,707,512

    (5.2)

    Total deposits

    12,429,373

    11,004,006

    13.0

    12,201,425

    1.9

    Federal Home Loan Bank borrowings

    549,003

    1,415,615

    (61.2)

    794,621

    (30.9)

    Other short-term borrowings

    241,950

    282,362

    (14.3)

    381,909

    (36.6)

    Subordinated debt and junior subordinated debt 

    192,291

    199,869

    (3.8)

    192,150

    0.1

    Total borrowings

    983,244

    1,897,846

    (48.2)

    1,368,680

    (28.2)

    Accrued interest payable

    4,314

    8,077

    (46.6)

    5,014

    (14.0)

    Other liabilities

    251,942

    216,262

    16.5

    244,055

    3.2

    Total Liabilities

    13,668,873

    13,126,191

    4.1

    13,819,174

    (1.1)

    Shareholders’ Equity

    Preferred stock, no par value; 1,000,000 shares authorized in 2020 and 2019, respectively; 

    150,000 shares 6.75% non-cumulative perpetual preferred stock, Series A, 

    liquidation preference $150.0 million, issued and outstanding at December 31, 2020

    and 0 shares issued and outstanding at December 31, 2019, respectively.

    144,484

    100.0

    144,529

    (0.0)

    Common stock, $2.0833 par value; 100,000,000 shares authorized in

    2020 and 2019, respectively; 68,081,306,  68,078,116 and 68,081,306 shares

    issued, respectively; 67,254,706, 67,824,428 and 67,216,012 shares

    141,834

    141,827

    0.0

    141,834

    outstanding, respectively

    Capital surplus

    1,634,815

    1,636,966

    (0.1)

    1,634,172

    0.0

    Retained earnings

    831,688

    824,694

    0.8

    802,892

    3.6

    Treasury stock ( 826,600, 253,688 and 865,294 shares – at cost, respectively)

    (25,949)

    (9,463)

    (174.2)

    (27,403)

    5.3

    Accumulated other comprehensive income

    31,359

    1,201

     NM 

    38,301

    (18.1)

    Deferred benefits for directors

    (1,494)

    (1,304)

    (14.6)

    (1,359)

    (9.9)

    Total Shareholders’ Equity

    2,756,737

    2,593,921

    6.3

    2,732,966

    0.9

    Total Liabilities and Shareholders’ Equity

    $    16,425,610

    $ 15,720,112

    4.5

    $       16,552,140

    (0.8)

    (1) Allowance for credit losses – loans as of December 31, 2020 and September 30, 2020 includes a day 1 adjustment of $41.4 million due to the adoption of ASU 2016-13.

    NM – Not Meaningful

     

    WESBANCO, INC.

    Consolidated Selected Financial Highlights

    Page 8

    (unaudited, dollars in thousands)

    Average balance sheet and

    net interest margin analysis

    For the Three Months Ended December 31,

    For the Twelve Months Ended December 31,

    2020

    2019

    2020

    2019

    Average 

    Average

    Average 

    Average

    Average 

    Average

    Average 

    Average

    Assets

    Balance

    Rate

    Balance

    Rate

    Balance

    Rate

    Balance

    Rate

    Due from banks – interest bearing

    $          661,696

    0.12

    %

    $            67,820

    2.00

    %

    $               548,078

    0.21

    %

    $           71,312

    2.41

    %

    Loans, net of unearned income (1)

    11,056,512

    4.12

    8,842,437

    4.75

    10,874,763

    4.28

    7,991,107

    4.92

    Securities: (2)

        Taxable

    2,144,038

    2.02

    2,474,024

    2.68

    2,281,905

    2.35

    2,366,631

    2.77

        Tax-exempt (3)

    594,559

    3.44

    655,443

    3.52

    616,808

    3.49

    722,388

    3.51

            Total securities

    2,738,597

    2.33

    3,129,467

    2.86

    2,898,713

    2.59

    3,089,019

    2.95

    Other earning assets 

    42,797

    6.91

    59,750

    6.31

    60,054

    6.38

    53,919

    6.89

             Total earning assets (3)

    14,499,602

    3.61

    %

    12,099,474

    4.25

    %

    14,381,608

    3.80

    %

    11,205,357

    4.37

    %

    Other assets

    2,047,159

    1,819,956

    2,061,096

    1,648,563

    Total Assets

    $   16,546,761

    $   13,919,430

    $        16,442,704

    $  12,853,920

    Liabilities and Shareholders’ Equity

    Interest bearing demand deposits

    $        2,730,976

    0.16

    %

    $        2,224,423

    0.72

    %

    $            2,572,248

    0.27

    %

    $      2,155,211

    0.78

    %

    Money market accounts 

    1,672,597

    0.16

    1,291,999

    0.66

    1,611,135

    0.29

    1,165,346

    0.69

    Savings deposits

    2,181,804

    0.05

    1,799,617

    0.21

    2,084,576

    0.09

    1,705,858

    0.18

    Certificates of deposit

    1,663,558

    0.67

    1,613,060

    0.93

    1,814,693

    0.75

    1,442,745

    1.08

        Total interest bearing deposits

    8,248,935

    0.23

    6,929,099

    0.63

    8,082,652

    0.33

    6,469,160

    0.67

    Federal Home Loan Bank borrowings

    691,183

    2.14

    1,188,220

    2.43

    1,135,934

    2.17

    1,074,715

    2.47

    Other borrowings

    342,659

    0.32

    304,554

    1.31

    357,100

    0.48

    317,585

    1.70

    Subordinated debt and junior subordinated debt 

    192,200

    3.97

    174,067

    4.84

    193,693

    4.29

    170,983

    5.23

          Total interest bearing liabilities 

    9,474,977

    0.45

    %

    8,595,940

    0.99

    %

    9,769,379

    0.63

    %

    8,032,443

    1.05

    %

    Non-interest bearing demand deposits

    4,084,889

    2,811,367

    3,781,583

    2,550,864

    Other liabilities

    241,959

    183,002

    240,340

    150,618

    Shareholders’ equity

    2,744,936

    2,329,121

    2,651,402

    2,119,995

    Total Liabilities and Shareholders’ Equity

    $   16,546,761

    $   13,919,430

    $        16,442,704

    $  12,853,920

    Taxable equivalent net interest spread

    3.16

    %

    3.26

    %

    3.17

    %

    3.32

    %

    Taxable equivalent net interest margin 

    3.31

    %

    3.55

    %

    3.37

    %

    3.62

    %

    (1) Gross of allowance for loan losses and net of unearned income.  Includes non-accrual and loans held for sale. Loan fees included in interest income on loans were $6.7 million and $0.5

    million for the three months ended December 31, 2020 and 2019, respectively, and were $16.2 million and $1.8 million for the years ended December 31, 2020 and 2019, respectively. As part

    of loan fees for both the three months and year ended December 31, 2020, PPP loan fees were $5.7 million and $13.4 million. Additionally, loan accretion included in interest income on loans

    acquired from prior acquisitions was $4.6 million and $4.9 million for the three months ended December 31, 2020 and 2019, respectively, and was $17.0 million and $17.9 million for the

    years ended December 31, 2020 and 2019, respectively. Accretion on interest bearing liabilities acquired from prior acquisitions was $1.5 million and $1.9 million for the three months

    ended December 31, 2020 and 2019, respectively, and was $9.5 million and $2.8 million for the years ended December 31, 2020 and 2019, respectively.

    (2) Average yields on available-for-sale securities are calculated based on amortized cost.

    (3) Taxable equivalent basis is calculated on tax-exempt securities using a rate of 21% for each period presented.

     

    WESBANCO, INC.

    Consolidated Selected Financial Highlights

     Page 9 

    (unaudited, dollars in thousands, except shares and per share amounts)

    Quarter Ended

    Statement of Income

    Dec. 31,

    Sept.  30,

    June 30,

    Mar. 31,

    Dec. 31,

    Interest and dividend income

    2020

    2020

    2020

    2020

    2019

    Loans, including fees

    $                      114,582

    $              116,524

    $            115,068

    $              119,503

    $            105,879

    Interest and dividends on securities:

    Taxable 

    10,892

    11,669

    14,047

    16,986

    16,586

    Tax-exempt

    4,059

    4,182

    4,302

    4,456

    4,563

    Total interest and dividends on securities

    14,951

    15,851

    18,349

    21,442

    21,149

    Other interest income 

    945

    1,282

    1,277

    1,503

    1,281

              Total interest and dividend income

    130,478

    133,657

    134,694

    142,448

    128,309

    Interest expense

    Interest bearing demand deposits

    1,099

    1,225

    1,350

    3,393

    4,054

    Money market deposits

    678

    707

    879

    2,352

    2,143

    Savings deposits

    280

    303

    297

    923

    935

    Certificates of deposit

    2,797

    3,197

    3,514

    4,054

    3,800

    Total interest expense on deposits

    4,854

    5,432

    6,040

    10,723

    10,932

    Federal Home Loan Bank borrowings

    3,719

    5,457

    7,293

    8,232

    7,279

    Other short-term borrowings

    275

    304

    279

    870

    1,009

    Subordinated debt and junior subordinated debt

    1,918

    1,871

    2,069

    2,461

    2,125

    Total interest expense

    10,766

    13,064

    15,681

    22,286

    21,345

    Net interest income 

    119,712

    120,593

    119,013

    120,162

    106,964

    Provision for credit losses

    (209)

    16,288

    61,841

    29,821

    1,824

    Net interest income after provision for credit losses

    119,921

    104,305

    57,172

    90,341

    105,140

    Non-interest income

    Trust fees

    6,754

    6,426

    6,202

    6,952

    6,699

    Service charges on deposits

    5,671

    5,332

    4,323

    6,617

    7,171

    Electronic banking fees

    4,424

    4,780

    4,066

    4,254

    4,336

    Net securities brokerage revenue

    1,402

    1,725

    1,384

    1,679

    1,393

    Bank-owned life insurance

    1,750

    2,088

    1,752

    1,769

    1,882

    Mortgage banking income

    5,442

    8,488

    7,531

    1,276

    2,957

    Net securities gains

    691

    787

    1,299

    1,491

    520

    Net gain / (loss) on other real estate owned and other assets

    18

    -19

    -66

    169

    61

    Other income

    6,553

    5,005

    6,369

    3,802

    5,819

    Total non-interest income

    32,705

    34,612

    32,860

    28,009

    30,838

    Non-interest expense

    Salaries and wages

    39,140

    38,342

    36,773

    38,910

    36,984

    Employee benefits

    10,608

    10,604

    10,138

    10,373

    9,894

    Net occupancy

    6,771

    7,092

    6,634

    7,084

    6,162

    Equipment 

    6,810

    6,229

    5,722

    6,039

    5,570

    Marketing

    1,675

    1,577

    1,567

    1,138

    2,059

    FDIC insurance 

    1,278

    1,948

    2,395

    2,113

    668

    Amortization of intangible assets

    3,327

    3,346

    3,365

    3,374

    2,916

    Restructuring and merger-related expense

    484

    3,608

    468

    5,164

    11,522

    Other operating expenses  

    17,976

    17,198

    18,440

    17,138

    16,781

    Total non-interest expense

    88,069

    89,943

    85,502

    91,333

    92,556

    Income before provision for income taxes

    64,557

    48,974

    4,530

    27,017

    43,422

    Provision for income taxes 

    11,703

    7,669

    42

    3,621

    7,046

    Net Income

    52,854

    41,305

    4,488

    23,396

    36,376

    Preferred stock dividends

    2,644

    Net income available to common shareholders

    $                        50,210

    $                41,305

    $                4,488

    $                23,396

    $              36,376

    Taxable equivalent net interest income

    $                     120,790

    $             121,705

    $           120,156

    $             121,346

    $           108,177

    Per common share data

    Net income per common share – basic

    $                            0.75

    $                    0.61

    $                  0.07

    $                    0.34

    $                  0.60

    Net income per common share – diluted

    0.75

    0.61

    0.07

    0.34

    0.60

    Net income per common share – diluted, excluding certain items (1)(2)

    0.76

    0.66

    0.07

    0.40

    0.75

    Dividends declared

    0.32

    0.32

    0.32

    0.32

    0.31

    Book value (period end)

    38.84

    38.51

    38.23

    38.56

    38.24

    Tangible book value (period end) (1)

    21.75

    21.39

    21.10

    21.36

    21.55

    Average common shares outstanding – basic

    67,238,005

    67,214,759

    67,104,828

    67,486,550

    60,461,325

    Average common shares outstanding – diluted

    67,304,442

    67,269,303

    67,181,756

    67,587,446

    60,562,366

    Period end common shares outstanding

    67,254,706

    67,216,012

    67,211,192

    67,058,155

    67,824,428

    Period end preferred shares outstanding

    150,000

    150,000

    Full time equivalent employees

    2,612

    2,618

    2,676

    2,703

    2,705

    (1) See non-GAAP financial measures for additional information relating to the calculation of this item.

    (2) Certain items excluded from the calculation consist of after-tax restructuring and merger-related expenses.

     

    WESBANCO, INC.

    Consolidated Selected Financial Highlights

     Page 10 

    (unaudited, dollars in thousands)

    Quarter Ended

    Dec. 31,

    Sept. 30,

    June 30,

    Mar. 31,

    Dec. 31,

    Asset quality data

    2020

    2020

    2020

    2020

    2019

    Non-performing assets:

    Troubled debt restructurings – accruing

    $           3,927

    $           4,191

    $           5,105

    $           5,434

    $           5,431

    Non-accrual loans:

    Troubled debt restructurings

    1,828

    1,818

    1,339

    1,571

    1,422

    Other non-accrual loans

    35,052

    35,448

    34,119

    32,796

    43,491

        Total non-accrual loans

    36,880

    37,266

    35,458

    34,367

    44,913

        Total non-performing loans 

    40,807

    41,457

    40,563

    39,801

    50,344

    Other real estate and repossessed assets

    549

    738

    1,212

    1,083

    4,178

    Total non-performing assets

    $         41,356

    $         42,195

    $         41,775

    $         40,884

    $         54,522

    Past due loans (1):

    Loans past due 30-89 days

    $         31,596

    $         17,338

    $         30,595

    $         32,805

    $         36,330

    Loans past due 90 days or more

    8,846

    10,170

    36,903

    14,287

    11,613

    Total past due loans

    $         40,442

    $         27,508

    $         67,498

    $         47,092

    $         47,943

    Criticized and classified loans (2):

    Criticized loans

    $       362,295

    $       248,264

    $       148,580

    $       120,801

    $       118,959

    Classified loans

    132,650

    108,594

    98,127

    95,162

    103,519

    Total criticized and classified loans

    $       494,945

    $       356,858

    $       246,707

    $       215,963

    $       222,478

    Loans past due 30-89 days / total portfolio loans (3)

    0.29

    %

    0.16

    %

    0.28

    %

    0.32

    %

    0.35

    %

    Loans past due 90 days or more / total portfolio loans

    0.08

    0.09

    0.33

    0.14

    0.11

    Non-performing loans / total portfolio loans

    0.38

    0.38

    0.37

    0.38

    0.49

    Non-performing assets/total portfolio loans, other

    real estate and repossessed assets

    0.38

    0.38

    0.38

    0.39

    0.53

    Non-performing assets / total assets

    0.25

    0.26

    0.25

    0.26

    0.35

    Criticized and classified loans / total portfolio loans

    4.59

    3.25

    2.23

    2.09

    2.17

    Allowance for credit losses

    Allowance for credit losses – loans (4)

    $       185,827

    $       185,109

    $       168,475

    $       114,272

    $         52,429

    Provision for credit losses (5)

    (209)

    16,288

    61,841

    29,821

    1,824

    Net loan and deposit account overdraft charge-offs and recoveries

    524

    (133)

    1,942

    4,716

    4,476

    Annualized net loan charge-offs and recoveries /average loans

    0.02

    %

    (0.00)

    %

    0.07

    %

    0.18

    %

    0.20

    %

    Allowance for credit losses – loans / total portfolio loans

    1.72

    %

    1.68

    %

    1.52

    %

    1.10

    %

    0.51

    %

    Allowance for credit losses – loans / total portfolio loans excluding PPP loans

    1.85

    %

    1.83

    %

    1.65

    %

    1.10

    %

    0.51

    %

    Allowance for credit losses – loans / non-performing loans

    4.55

    x

    4.47

    x

    4.15

    x

    2.87

    x

    1.04

    x

    Allowance for credit losses – loans / non-performing loans and

    loans past due 

    2.29

    x

    2.68

    x

    1.56

    x

    1.32

    x

    0.53

    x

    Quarter Ended

    Dec. 31,

    Sept. 30,

    June 30,

    Mar. 31,

    Dec. 31,

    2020

    2020

    2020

    2020

    2019

    Capital ratios

    Tier I leverage capital

    10.51

    %

    10.18

    %

    9.09

    %

    9.64

    %

    11.30

    %

    Tier I risk-based capital

    14.72

    14.29

    12.59

    12.51

    12.89

    Total risk-based capital

    17.57

    17.18

    15.33

    14.83

    15.12

    Common equity tier 1 capital ratio (CET 1)

    13.40

    12.99

    12.59

    12.51

    12.89

    Average shareholders’ equity to average assets

    16.59

    15.92

    15.57

    16.43

    16.73

    Tangible equity to tangible assets (6)

    10.52

    10.27

    9.09

    9.65

    10.02

    Tangible common equity to tangible assets (6)

    9.58

    9.33

    9.09

    9.65

    10.02

    (1) Excludes non-performing loans.

    (2) Criticized and classified commercial loans may include loans that are also reported as non-performing or past due.

    (3) Total portfolio loans includes $726.3 million of PPP loans as of December 31, 2020.

    (4)

    Excludes the allowance for credit losses – loan commitments, which is included in other liabilities, of $9.5 million, $10.8 million and $10.7 million as of December 31,

    2020, September 30, 2020 and June 30, 2020, respectively.

    (5)

    The provision for credit losses includes ($1.3) million, $0.1 million and $5.1 million for loan commitments for the three months ended December 31, 2020, September 30,

    2020 and June 30, 2020, respectively.

    (6) See non-GAAP financial measures for additional information relating to the calculation of this ratio.

     

    NON-GAAP FINANCIAL MEASURES

    Page 11

    The following non-GAAP financial measures used by WesBanco provide information useful to investors in understanding WesBanco’s operating performance and trends, and facilitate comparisons with the performance of WesBanco’s peers. The following tables summarize the non-GAAP financial measures derived from amounts reported in WesBanco’s financial statements.

    Three Months Ended

    Year to Date 

    Dec. 31,

    Sept. 30,

    June 30,

    Mar. 31,

    Dec. 31,

    Dec. 31,

    (unaudited, dollars in thousands, except shares and per share amounts)

    2020

    2020

    2020

    2020

    2019

    2020

    2019

    Return on average assets, excluding after-tax restructuring and merger-related expenses:

    Net income available to common shareholders

    $               50,210

    $             41,305

    $             4,488

    $           23,396

    $           36,376

    $         119,400

    $      158,873

    Plus: after-tax restructuring and merger-related expenses  (1)

    383

    2,850

    370

    4,080

    9,102

    7,683

    12,954

    Net income available to common shareholders excluding after-tax restructuring and merger-related expenses

    50,593

    44,155

    4,858

    27,476

    45,478

    127,083

    171,827

    Average total assets

    $        16,546,761

    $      16,719,717

    $    16,715,211

    $    15,784,939

    $    13,919,430

    $    16,442,704

    $ 12,853,920

    Return on average assets, excluding after-tax restructuring and merger-related expenses (annualized)  (2)

    1.22%

    1.05%

    0.12%

    0.70%

    1.30%

    0.77%

    1.34%

    Return on average equity, excluding after-tax restructuring and merger-related expenses:

    Net income available to common shareholders

    $               50,210

    $             41,305

    $             4,488

    $           23,396

    $           36,376

    $         119,400

    $      158,873

    Plus: after-tax restructuring and merger-related expenses  (1)

    383

    2,850

    370

    4,080

    9,102

    7,683

    12,954

    Net income available to common shareholders excluding after-tax restructuring and merger-related expenses 

    50,593

    44,155

    4,858

    27,476

    45,478

    127,083

    171,827

    Average total shareholders’ equity

    2,744,936

    2,662,513

    2,602,938

    2,594,069

    2,329,121

    2,651,402

    2,119,995

    Return on average equity, excluding after-tax restructuring and merger-related expenses (annualized)  (2)

    7.33%

    6.60%

    0.75%

    4.26%

    7.75%

    4.79%

    8.11%

    Return on average tangible equity:

    Net income available to common shareholders

    $               50,210

    $             41,305

    $             4,488

    $           23,396

    $           36,376

    $         119,400

    $      158,873

    Plus: amortization of intangibles (1)

    2,628

    2,643

    2,658

    2,665

    2,304

    10,595

    8,169

    Net income available to common shareholders before amortization of intangibles 

    52,838

    43,948

    7,146

    26,061

    38,680

    129,995

    167,042

    Average total shareholders’ equity

    2,744,936

    2,662,513

    2,602,938

    2,594,069

    2,329,121

    2,651,402

    2,119,995

    Less: average goodwill and other intangibles, net of def. tax liability

    (1,150,184)

    (1,150,549)

    (1,152,856)

    (1,112,327)

    (997,658)

    (1,141,528)

    (927,974)

    Average tangible equity

    $          1,594,752

    $        1,511,964

    $      1,450,082

    $      1,481,742

    $      1,331,463

    $      1,509,874

    $   1,192,021

    Return on average tangible equity (annualized)  (2)

    13.18%

    11.56%

    1.98%

    7.07%

    11.53%

    8.61%

    14.01%

    Average tangible common equity

    $          1,450,243

    $        1,431,657

    $      1,450,082

    $      1,481,742

    $      1,331,463

    $      1,453,363

    $   1,192,021

    Return on average tangible common equity (annualized)  (2)

    14.49%

    12.21%

    1.98%

    7.07%

    11.53%

    8.94%

    14.01%

    Return on average tangible equity, excluding after-tax restructuring and merger-related expenses:

    Net income available to common shareholders

    $               50,210

    $             41,305

    $             4,488

    $           23,396

    $           36,376

    $         119,400

    $      158,873

    Plus: after-tax restructuring and merger-related expenses  (1)

    383

    2,850

    370

    4,080

    9,102

    7,683

    12,954

    Plus: amortization of intangibles  (1)

    2,628

    2,643

    2,658

    2,665

    2,304

    10,595

    8,169

    Net income available to common shareholders before amortization of intangibles 

         and excluding after-tax restructuring and merger-related expenses

    53,221

    46,798

    7,516

    30,141

    47,782

    137,678

    179,996

    Average total shareholders’ equity

    2,744,936

    2,662,513

    2,602,938

    2,594,069

    2,329,121

    2,651,402

    2,119,995

    Less: average goodwill and other intangibles, net of def. tax liability

    (1,150,184)

    (1,150,549)

    (1,152,856)

    (1,112,327)

    (997,658)

    (1,141,528)

    (927,974)

    Average tangible equity

    $          1,594,752

    $        1,511,964

    $      1,450,082

    $      1,481,742

    $      1,331,463

    $      1,509,874

    $   1,192,021

    Return on average tangible equity, excluding after-tax  restructuring and merger-related expenses (annualized)  (2)

    13.28%

    12.31%

    2.08%

    8.18%

    14.24%

    9.12%

    15.10%

    Average tangible common equity

    $          1,450,243

    $        1,431,657

    $      1,450,082

    $      1,481,742

    $      1,331,463

    $      1,453,363

    $   1,192,021

    Return on average tangible common equity, excluding after-tax restructuring and merger-related expenses (annualized)  (2)

    14.60%

    13.00%

    2.08%

    8.18%

    14.24%

    9.47%

    15.10%

    Efficiency ratio:

    Non-interest expense

    $               88,069

    $             89,943

    $           85,502

    $           91,333

    $           92,556

    $         354,845

    $      312,208

    Less: restructuring and merger-related expense

    (484)

    (3,608)

    (468)

    (5,164)

    (11,522)

    (9,725)

    (16,397)

    Non-interest expense excluding restructuring and merger-related expense

    87,585

    86,335

    85,034

    86,169

    81,034

    345,120

    295,811

    Net interest income on a fully taxable equivalent basis

    120,790

    121,705

    120,156

    121,346

    108,177

    483,999

    405,222

    Non-interest income

    32,705

    34,612

    32,860

    28,009

    30,838

    128,185

    116,716

    Net interest income on a fully taxable equivalent basis plus non-interest income

    $             153,495

    $           156,317

    $         153,016

    $         149,355

    $         139,015

    $         612,184

    $      521,938

    Efficiency Ratio

    57.06%

    55.23%

    55.57%

    57.69%

    58.29%

    56.38%

    56.68%

    Net income available to common shareholders, excluding after-tax restructuring and merger-related expenses:

    Net income available to common shareholders

    $               50,210

    $             41,305

    $             4,488

    $           23,396

    $           36,376

    $         119,400

    $      158,873

    Add: After-tax restructuring and merger-related expenses (1)

    383

    2,850

    370

    4,080

    9,102

    7,683

    12,954

    Net income available to common shareholders, excluding after-tax restructuring and merger-related expenses

    $               50,593

    $             44,155

    $             4,858

    $           27,476

    $           45,478

    $         127,083

    $      171,827

    Net income per common share – diluted, excluding after-tax restructuring and merger-related expenses:

    Net income per common share – diluted

    $                   0.75

    $                 0.61

    $               0.07

    $               0.35

    $               0.60

    $               1.77

    $            2.83

    Add: After-tax restructuring and merger-related expenses per common share – diluted (1)

    0.01

    0.05

    (0.00)

    0.06

    0.15

    0.11

    0.23

    Net income per common share – diluted, excluding after-tax restructuring and merger-related expenses

    $                   0.76

    $                 0.66

    $               0.07

    $               0.41

    $               0.75

    $               1.88

    $            3.06

    Period End

    Dec. 31, 

    Sept. 30,

    June 30,

    Mar. 31,

    Dec. 31, 

    2020

    2020

    2020

    2020

    2019

    Tangible book value per share:

    Total shareholders’ equity

    $          2,756,737

    $        2,732,966

    $      2,569,521

    $      2,586,060

    $      2,593,921

    Less:  goodwill and other intangible assets, net of def. tax liability

    (1,149,161)

    (1,150,939)

    (1,151,523)

    (1,154,033)

    (1,132,262)

    Less: preferred shareholder’s equity

    (144,484)

    (144,529)

    Tangible common equity

    1,463,092

    1,437,498

    1,417,998

    1,432,027

    1,461,659

    Common shares outstanding

    67,254,706

    67,216,012

    67,211,192

    67,058,155

    67,824,428

    Tangible book value per share

    $                 21.75

    $               21.39

    $             21.10

    $             21.36

    $             21.55

    Tangible common equity to tangible assets:

    Total shareholders’ equity

    $          2,756,737

    $        2,732,966

    $      2,569,521

    $      2,586,060

    $      2,593,921

    Less:  goodwill and other intangible assets, net of def. tax liability

    (1,149,161)

    (1,150,939)

    (1,151,523)

    (1,154,033)

    (1,132,262)

    Tangible equity

    1,607,576

    1,582,027

    1,417,998

    1,432,027

    1,461,659

    Less: preferred shareholder’s equity

    (144,484)

    (144,529)

    Tangible common equity

    1,463,092

    1,437,498

    1,417,998

    1,432,027

    1,461,659

    Total assets

    16,425,610

    16,552,140

    16,755,395

    15,995,572

    15,720,112

    Less:  goodwill and other intangible assets, net of def. tax liability

    (1,149,161)

    (1,150,939)

    (1,151,523)

    (1,154,033)

    (1,132,262)

    Tangible assets

    $        15,276,449

    $      15,401,201

    $    15,603,872

    $    14,841,539

    $    14,587,850

    Tangible equity to tangible assets

    10.52%

    10.27%

    9.09%

    9.65%

    10.02%

    Tangible common equity to tangible assets

    9.58%

    9.33%

    9.09%

    9.65%

    10.02%

    (1) Tax effected at 21% for all periods presented.

    (2) The ratios are annualized by utilizing actual numbers of days in the quarter versus the year.

     

    ADDITONAL NON-GAAP FINANCIAL MEASURES

    Page 12

    The following non-GAAP financial measures used by WesBanco provide information useful to investors in understanding WesBanco’s operating performance and trends, and facilitate comparisons with the performance of WesBanco’s peers. The following tables summarize the non-GAAP financial measures derived from amounts reported in WesBanco’s financial statements.

    Three Months Ended

    Year to Date 

    Dec. 31,

    Sept. 30,

    June 30,

    Mar. 31,

    Dec. 31,

    Dec. 31,

    (unaudited, dollars in thousands, except shares and per share amounts)

    2020

    2020

    2020

    2020

    2019

    2020

    2019

    Pre-tax, pre-provision income:

    Income before provision for income taxes

    $         64,557

    $        48,974

    $          4,530

    $        27,017

    $          43,422

    $      145,079

    $           193,214

    Add: provision for credit losses

    (209)

    16,288

    61,841

    29,821

    1,824

    107,741

    11,198

    Pre-tax, pre-provision income

    $         64,348

    $        65,262

    $        66,371

    $        56,838

    $          45,246

    $      252,820

    $           204,412

    Pre-tax, pre-provision income, excluding restructuring and merger-related expenses:

    Income before provision for income taxes

    $         64,557

    $        48,974

    $          4,530

    $        27,017

    $          43,422

    $      145,079

    $           193,214

    Add: provision for credit losses

    (209)

    16,288

    61,841

    29,821

    1,824

    107,741

    11,198

    Add: restructuring and merger-related expenses

    484

    3,608

    468

    5,164

    11,522

    9,725

    16,397

    Pre-tax, pre-provision income, excluding restructuring and merger-related expenses

    $         64,832

    $        68,870

    $        66,839

    $        62,002

    $          56,768

    $      262,545

    $           220,809

    Return on average assets, excluding certain items (1):

    Income before provision for income taxes

    $         64,557

    $        48,974

    $          4,530

    $        27,017

    $          43,422

    $      145,079

    $           193,214

    Add: provision for credit losses

    (209)

    16,288

    61,841

    29,821

    1,824

    107,741

    11,198

    Add: restructuring and merger-related expenses

    484

    3,608

    468

    5,164

    11,522

    9,725

    16,397

    Pre-tax, pre-provision income, excluding restructuring and merger-related expenses

    64,832

    68,870

    66,839

    62,002

    56,768

    262,545

    220,809

    Average total assets

    $  16,546,761

    $ 16,719,717

    $ 16,715,211

    $ 15,784,939

    $   13,919,430

    $ 16,442,704

    $      12,853,920

    Return on average assets, excluding certain items (annualized)  (1) (2)

    1.56%

    1.64%

    1.61%

    1.58%

    1.62%

    1.60%

    1.72%

    Return on average equity, excluding certain items (1):

    Income before provision for income taxes

    $         64,557

    $        48,974

    $          4,530

    $        27,017

    $          43,422

    $      145,079

    $           193,214

    Add: provision for credit losses

    (209)

    16,288

    61,841

    29,821

    1,824

    107,741

    11,198

    Add: restructuring and merger-related expenses

    484

    3,608

    468

    5,164

    11,522

    9,725

    16,397

    Pre-tax, pre-provision income, excluding restructuring and merger-related expenses

    64,832

    68,870

    66,839

    62,002

    56,768

    262,545

    220,809

    Average total shareholders’ equity

    2,744,936

    2,662,513

    2,602,938

    2,594,069

    2,329,121

    2,651,402

    2,119,995

    Return on average equity, excluding certain items (annualized) (1) (2)

    9.40%

    10.29%

    10.33%

    9.61%

    9.67%

    9.90%

    10.42%

    Return on average tangible equity, excluding certain items (1):

    Income before provision for income taxes

    $         64,557

    $        48,974

    $          4,530

    $        27,017

    $          43,422

    $      145,079

    $           193,214

    Add: provision for credit losses

    (209)

    16,288

    61,841

    29,821

    1,824

    107,741

    11,198

    Add: amortization of intangibles

    3,327

    3,346

    3,365

    3,374

    2,916

    13,411

    10,340

    Add: restructuring and merger-related expenses

    484

    3,608

    468

    5,164

    11,522

    9,725

    16,397

    Income before provision, restructuring and merger-related expenses and amortization of intangibles

    68,159

    72,216

    70,204

    65,376

    59,684

    275,956

    231,149

    Average total shareholders’ equity

    2,744,936

    2,662,513

    2,602,938

    2,594,069

    2,329,121

    2,651,402

    2,119,995

    Less: average goodwill and other intangibles, net of def. tax liability

    (1,150,184)

    (1,150,549)

    (1,152,856)

    (1,112,327)

    (997,658)

    (1,141,528)

    (927,974)

    Average tangible equity

    $    1,594,752

    $   1,511,964

    $   1,450,082

    $   1,481,742

    $     1,331,463

    $   1,509,874

    $        1,192,021

    Return on average tangible equity, excluding other items (annualized) (1) (2)

    17.00%

    19.00%

    19.47%

    17.75%

    17.78%

    18.28%

    19.39%

    Average tangible common equity

    $    1,450,243

    $   1,431,657

    $   1,450,082

    $   1,481,742

    $     1,331,463

    $   1,453,363

    $        1,192,021

    Return on average tangible common equity, excluding provision items (annualized) (1) (2)

    18.70%

    20.07%

    19.47%

    17.75%

    17.78%

    18.99%

    19.39%

    (1) Certain items excluded from the calculations consist of credit provisions, tax provisions and restructuring and merger-related expenses.

    (2) The ratios are annualized by utilizing actual numbers of days in the quarter versus the year.

     

    Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/wesbanco-announces-fourth-quarter-2020-financial-results-301215592.html

    SOURCE WesBanco, Inc.

    error-page.com © All rights reserved. | Newsphere by AF themes.