WesBanco Announces Fourth Quarter 2020 Financial Results

Rhea-AI Summary

WesBanco, Inc. (NASDAQ: WSBC) reported strong financial results for Q4 and the full year 2020. Q4 net income was $50.2 million, with EPS of $0.75, up from $36.4 million and $0.60 respectively in Q4 2019. Full-year net income dropped to $119.4 million ($1.77 EPS) from $158.9 million ($2.83 EPS) in 2019, affected by the adoption of the CECL standard. Notably, pre-tax, pre-provision income rose 14.2% YoY to $64.8 million in Q4. Total deposits increased by 13% to $12.4 billion, and loans grew by 5.1%, driven by ongoing support for small businesses during the pandemic.

Positive

• Q4 net income increased to $50.2 million, EPS at $0.75, from $36.4 million, $0.60 in 2019.
• Pre-tax, pre-provision income rose 14.2% YoY to $64.8 million.
• Total deposits up 13% YoY to $12.4 billion.
• Loan portfolio grew by 5.1% YoY, supporting small business recovery.

Negative

• Full-year net income decreased to $119.4 million from $158.9 million in 2019.
• EPS for the year dropped to $1.77 from $2.83 in the previous year.

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.

 

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SOURCE WesBanco, Inc.