WesBanco Announces Fourth Quarter 2021 Financial Results

Rhea-AI Summary

WesBanco (WSBC) reported a successful end to 2021, with net income of $51.6 million for Q4, up from $50.2 million in Q4 2020, translating to diluted EPS of $0.82. For the full year, net income surged to $232.1 million ($3.53 EPS), compared to $119.4 million ($1.77 EPS) in 2020. Trust assets hit a record $5.6 billion, and deposits grew 13.5% year-over-year. Despite lower net interest income and non-interest income declines, the bank maintained strong capital ratios, and repurchased 1.56 million shares in Q4, highlighting robust shareholder returns.

Positive

• Net income for Q4 2021 increased to $51.6 million, up from $50.2 million in Q4 2020.
• Full-year 2021 net income of $232.1 million represents a significant increase from $119.4 million in 2020.
• Trust assets reached a record $5.6 billion, reflecting organic growth and market appreciation.
• Deposits, excluding CDs, grew by 13.5% year-over-year, driven by increased demand deposits.
• The bank repurchased approximately 1.6 million shares in Q4 under existing authorization.

Negative

• Net interest income decreased by 7.8% in Q4 2021 compared to Q4 2020.
• Non-interest income fell by 6.1% in Q4 2021, primarily due to lower mortgage banking income.
• Loan growth was negatively impacted by elevated commercial real estate payoffs and SBA PPP loan forgiveness.

WHEELING, W.Va., Jan. 25, 2022 /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, 2021.  Net income available to common shareholders for the fourth quarter of 2021 was $51.6 million, with diluted earnings per share of $0.82, compared to $50.2 million and $0.75 per diluted share, respectively, for the fourth quarter of 2020.  For the twelve months ended December 31, 2021, net income was $232.1 million, or $3.53 per diluted share, compared to $119.4 million, or $1.77 per diluted share, for the 2020 period.  Net income available to common shareholders, excluding after-tax restructuring and merger-related expenses, for the three months ended December 31, 2021, was $51.8 million, or $0.82 per diluted share, as compared to $50.6 million and $0.76 per diluted share, respectively, in the prior year quarter (non-GAAP measures).  On the same basis, net income for the twelve months ended December 31, 2021 was $237.4 million, or $3.62 per diluted share, as compared to $127.1 million, or $1.88 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,
			2021				2020					2021				2020
(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)			$      51,757		$       0.82		$      50,593		$       0.76			$    237,441		$       3.62		$    127,083		$       1.88
Less: After-tax restructuring and merger- related expenses			(140)		-		(383)		(0.01)			(5,306)		(0.09)		(7,683)		(0.11)
Net income available to common shareholders (GAAP)			$      51,617		$       0.82		$      50,210		$       0.75			$    232,135		$       3.53		$    119,400		$       1.77
(1)See non-GAAP financial measures for additional information relating to the calculation of these items.

Financial and operational highlights during the quarter ended December 31, 2021:

• Continued expense management demonstrated by a year-to-date efficiency ratio of 58.22% (non-GAAP measure)
• Trust assets reached a record level of $5.6 billion, reflecting both market appreciation and organic growth
• Reflecting strong organic growth, residential mortgage originations increased 9% year-over-year, and totaled a record $1.4 billion during 2021, a 7% year-over-year increase
• Improving macro-economic forecasts and hospitality metrics approaching pre-pandemic levels favorably impacted the provision for credit losses under the Current Expected Credit Losses ("CECL") methodology, which drove both the net benefit in the provision for credit losses and the reduction in allowance for credit losses during the quarter
• Key credit quality metrics such as non-performing assets, past due loans, criticized and classified 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 prior four quarters)
• Deposit growth, excluding certificates of deposit ("CDs"), was 13.5% year-over-year, driven by growth in demand deposits
• During the quarter, we continued to return capital to our shareholders as we purchased approximately 1.6 million shares of our common stock on the open market under existing share repurchase authorizations

"WesBanco had another successful year during 2021 as we remained focused on ensuring a strong organization for our shareholders, and continued to appropriately return capital to them through both long-term, sustainable earnings growth and effective capital management," said Todd F. Clossin, President and Chief Executive Officer of WesBanco.  "Through the successful execution of our well-defined strategies we generated solid annual pre-tax, pre-provision earnings, while remaining a well-capitalized financial institution with a strong balance sheet and solid credit quality."

Mr. Clossin added, "Most importantly, we are proud of our entire organization as it adhered to our community banking roots and diligently focused on serving the financial needs of our customers and communities through the continuing pandemic, the gradual re-opening of our economies, and the completion of our core banking software system conversion, while still managing to receive numerous national accolades.  Lastly, we remain well-positioned for continued success, and are excited about our growth opportunities for the upcoming year."

Balance Sheet
As of December 31, 2021, total portfolio loans were $9.7 billion, and, when excluding SBA Payroll Protection Program ("SBA PPP") loans, total loans of $9.6 billion decreased 0.7% sequentially and 4.9% year-over-year.  Loan growth for the fourth quarter of 2021 reflects the continuation of both SBA PPP loan forgiveness and elevated commercial real estate payoffs.  While commercial real estate payoffs of $160 million during the fourth quarter declined by approximately $100 million from the third quarter, they remained above our more historical $85 million quarterly range.  This higher level of payoffs negatively impacted total loan growth by approximately one percentage point (non-annualized).  Further, the fourth quarter of 2021 included forgiveness of approximately 1,240 SBA PPP loans totaling $109 million (net of deferred fees).  As of December 31, 2021, approximately 1,950 SBA PPP loans for $163 million remained in the loan portfolio.

As of December 31, 2021, total deposits were $13.6 billion, which increased both sequentially and year-over-year due primarily to stimulus funds previously received by our customers and increased personal savings, which more than offset a $325.9 million year-over-year reduction in CDs.  Deposits, excluding CDs, increased 13.5% year-over-year, driven by a 15.3% increase in total demand deposits, which represent approximately 59% of total deposits.

Credit Quality
As of December 31, 2021, total loans past due, non-performing loans, and non-performing assets as percentages of the loan portfolio and total assets have remained relatively low and consistent throughout the last five quarters.  In addition, criticized and classified loans as a percent of the loan portfolio decreased 84 basis points year-over-year to 3.75%.  For the fourth quarter, we realized net loan charge-offs to average loans of four basis points, on an annualized basis.  The allowance for credit losses specific to total portfolio loans at December 31, 2021 was $121.6 million, or 1.25% of total loans; or, when excluding SBA PPP loans, 1.27% of total portfolio loans.  The improvements in macroeconomic forecasts and hospitality qualitative factors resulted in a negative provision for credit losses of $13.6 million for the fourth quarter of 2021, and a negative provision of $64.3 million for the year-to-date period.

Net Interest Margin and Income
The net interest margin of 2.97% for the fourth quarter of 2021 decreased 11 basis points sequentially and 34 basis points from the fourth quarter of 2020, primarily due to the lower interest rate environment, and a shift to a higher level of securities as a percentage of total assets.  As a result of increased cash balances from our customers' higher personal savings, investment securities increased by $1.3 billion year-over-year and, as of December 31, 2021, represented approximately 24% of total assets.  Reflecting the continued low interest rate environment, we remain focused on controlling the costs of our various funding sources.  We have reduced deposit funding costs 10 basis points year-over-year to 13 basis points for the fourth quarter of 2021, or just 8 basis points when including non-interest bearing deposits.  When including our continued reductions in FHLB and other borrowings, the costs of total interest-bearing liabilities decreased 25 basis points year-over-year to 20 basis points.  Accretion from acquisitions benefited the fourth quarter net interest margin by 9 basis points, as compared to 16 basis points in the prior year period.  Lastly, the forgiveness of SBA PPP loans benefited the fourth quarter of 2021 net interest margin by a net 9 basis points, as compared to a net 2 basis points in the prior year period.

Net interest income decreased $9.4 million, or 7.8%, during the fourth quarter of 2021, as compared to the same quarter of 2020, reflecting lower loan yields due to repricing of existing loans and lower new offered rates in the current market environment, lower accretion from purchase accounting, and lower rates on new investment securities purchased, partially offset by lower interest paid on deposits and borrowings as described above.  For the twelve months ended December 31, 2021, net interest income decreased $21.5 million, or 4.5%, due to the reasons discussed for the three-month period comparison.

Non-Interest Income
For the fourth quarter of 2021, non-interest income of $30.7 million decreased $2.0 million, or 6.1%, from the fourth quarter of 2020, driven primarily by lower mortgage banking income, which decreased $2.6 million, or 47.2%, as we continued efforts to retain more residential mortgages on the balance sheet.  Residential mortgage originations of $383 million continued to be strong during the quarter, while the amount retained increased from 35% last year to approximately 70%.  Bank-owned life insurance increased $1.1 million, or 63.7%, year-over-year due to death benefits during the quarter and new policies purchased during the third quarter.  Reflective of macroeconomic improvements, service charges on deposits were higher due to increased general consumer spending, resulting in higher eligible account fees.  Lastly, other income decreased $1.9 million, or 28.6%, due to lower loan swap-related income driven by a negative fair market value adjustment as compared to last year, and the sale of the debit card sponsorship business earlier this year.

Non-interest income, for the twelve months ended December 31, 2021, increased $4.6 million, or 3.6%.  The $4.7 million increase in net gain on other real estate owned and other assets was primarily due to a gain earned during the second quarter on an investment made by WesBanco's Community Development Corporation in a start-up firm more than ten years ago that was recently acquired by a public company.  Trust fees increased $3.2 million, or 12.1%, to $29.5 million reflecting a 12.3% year-over-year increase in trust assets to $5.6 billion due to both market appreciation and organic growth.  In addition, net securities gains decreased $3.2 million, or 73.9%, year-over-year due to higher sales of securities during the prior year.  Mortgage banking fees decreased $3.2 million, or 14.1%, compared to the prior year period, net of year-to-date fair value loss adjustments of $1.2 million, from our efforts to keep more 1-to-4 family residential mortgages on the balance sheet.

Non-Interest Expense
Excluding restructuring and merger-related expenses, non-interest expense for the three months ended December 31, 2021 were well-controlled as they increased $0.5 million, or 0.6%, to $88.1 million compared to the prior year period.  Salaries and wages increased $1.3 million, or 3.3%, due to higher securities broker and residential mortgage originator commissions and lower loan contra-costs, which more than offset lower year-over-year salary expense of approximately $1.7 million and a net decrease in bonus and stock compensation expense of $0.6 million compared to the prior year period.  Equipment and software expense for the fourth quarter of 2021 increased $1.5 million, or 22.6%, year-over-year due primarily to the movement of online banking costs from other operating expenses.  Lastly, other operating expenses decreased $2.8 million, or 15.4%, due to the aforementioned move of online banking costs, as well as a reduction in ACH and ATM processing charges related to a change in providers, in conjunction with our core banking software system conversion.

On a similar basis, non-interest expense during the twelve months of 2021 increased just $1.3 million, or 0.4%, compared to the prior year period.  The primary drivers of this slight increase were higher equipment and software costs, legal settlement costs incurred during the third quarter, and marketing expense from product advertising and brand awareness campaigns that were delayed from 2020 due to the COVID-19 pandemic.  The increases were mostly offset by lower FDIC insurance from a refund received during the second quarter and improved risk factors and amortization of intangible asset expense, as well as efficiencies derived from financial center closures during the past year.

Capital
WesBanco continues to maintain what we believe are strong regulatory capital ratios, 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, 2021, Tier I leverage was 10.02%, Tier I risk-based capital ratio was 14.05%, common equity Tier 1 capital ratio ("CET 1") was 12.77%, and total risk-based capital was 15.91%.

During the fourth quarter of 2021, WesBanco repurchased 1,560,266 shares of its outstanding common stock on the open market at a total cost of $54.7 million, or $35.03 per share.  During the twelve months of 2021, WesBanco repurchased 5,177,563 shares of its outstanding common stock on the open market.  As of December 31, 2021, approximately 1.4 million shares remained for repurchase under the existing share repurchase authorization that was approved on August 26, 2021, by WesBanco's Board of Directors.

Conference Call and Webcast
WesBanco will host a conference call to discuss the Company's financial results for the fourth quarter of 2021 at 10:00 a.m. ET on Wednesday, January 26, 2022.  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 4384990.  The replay will begin at approximately 12:00 p.m. ET on January 26, and end at 12 a.m. ET on February 9.  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, 2020 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, 2021, June 30, 2021 and September 30, 2021, 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.  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 $5.6 billion of assets under management (as of December 31, 2021).  WesBanco's banking subsidiary, WesBanco Bank, Inc., operates 205 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				2021		2020		% Change		2021		2020		% Change
	Loans, including fees			$          97,432		$          114,582		(15.0)		$        415,965		$          465,677		(10.7)
	Interest and dividends on securities:
		Taxable		12,934		10,892		18.7		50,401		53,594		(6.0)
		Tax-exempt		4,236		4,059		4.4		16,161		16,999		(4.9)
			Total interest and dividends on securities	17,170		14,951		14.8		66,562		70,593		(5.7)
	Other interest income			605		945		(36.0)		2,440		5,007		(51.3)
Total interest and dividend income				115,207		130,478		(11.7)		484,967		541,277		(10.4)
Interest expense
	Interest bearing demand deposits			810		1,099		(26.3)		3,669		7,069		(48.1)
	Money market deposits			315		678		(53.5)		1,803		4,616		(60.9)
	Savings deposits			261		280		(6.8)		1,031		1,802		(42.8)
	Certificates of deposit			1,501		2,797		(46.3)		7,623		13,562		(43.8)
			Total interest expense on deposits	2,887		4,854		(40.5)		14,126		27,049		(47.8)
	Federal Home Loan Bank borrowings			780		3,719		(79.0)		6,167		24,701		(75.0)
	Other short-term borrowings			35		275		(87.3)		227		1,729		(86.9)
	Subordinated debt and junior subordinated debt			1,178		1,918		(38.6)		6,514		8,318		(21.7)
			Total interest expense	4,880		10,766		(54.7)		27,034		61,797		(56.3)
Net interest income				110,327		119,712		(7.8)		457,933		479,480		(4.5)
	Provision for credit losses			(13,559)		(209)		NM		(64,274)		107,741		(159.7)
Net interest income after provision for credit losses				123,886		119,921		3.3		522,207		371,739		40.5
Non-interest income
	Trust fees			7,441		6,754		10.2		29,511		26,335		12.1
	Service charges on deposits			6,592		5,671		16.2		22,412		21,943		2.1
	Electronic banking fees			4,465		4,424		0.9		19,318		17,524		10.2
	Net securities brokerage revenue			1,579		1,402		12.6		6,896		6,189		11.4
	Bank-owned life insurance			2,864		1,750		63.7		8,936		7,359		21.4
	Mortgage banking income			2,872		5,442		(47.2)		19,528		22,736		(14.1)
	Net securities gains (losses)			372		691		(46.2)		1,113		4,268		(73.9)
	Net (loss)/gain on other real estate owned and other assets			(158)		18		(977.8)		4,816		103		NM
	Other income			4,682		6,553		(28.6)		20,255		21,728		(6.8)
			Total non-interest income	30,709		32,705		(6.1)		132,785		128,185		3.6
Non-interest expense
	Salaries and wages			40,420		39,140		3.3		154,242		153,166		0.7
	Employee benefits			10,842		10,608		2.2		41,033		41,723		(1.7)
	Net occupancy			6,413		6,771		(5.3)		26,843		27,580		(2.7)
	Equipment and software			8,352		6,810		22.6		30,006		24,801		21.0
	Marketing			2,601		1,675		55.3		8,634		5,957		44.9
	FDIC insurance			1,460		1,278		14.2		4,150		7,734		(46.3)
	Amortization of intangible assets			2,834		3,327		(14.8)		11,457		13,411		(14.6)
	Restructuring and merger-related expense			177		484		(63.4)		6,717		9,725		(30.9)
	Other operating expenses			15,204		17,976		(15.4)		70,061		70,748		(1.0)
			Total non-interest expense	88,303		88,069		0.3		353,143		354,845		(0.5)
Income before provision for income taxes				66,292		64,557		2.7		301,849		145,079		108.1
	Provision for income taxes			12,144		11,703		3.8		59,589		23,035		158.7
Net Income				54,148		52,854		2.4		242,260		122,044		98.5
Preferred stock dividends				2,531		2,644		(4.3)		10,125		2,644		282.9
Net income available to common shareholders				$          51,617		$            50,210		2.8		$        232,135		$          119,400		94.4
Taxable equivalent net interest income				$       111,453		$       120,790		(7.7)		$       462,229		$       483,999		(4.5)
Per common share data
Net income per common share - basic				$               0.82		$                0.75		9.3		$               3.54		$                1.78		98.9
Net income per common share - diluted				0.82		0.75		9.3		3.53		1.77		99.4
Net income per common share - diluted, excluding certain items (1)(2)				0.82		0.76		7.9		3.62		1.88		92.6
Dividends declared				0.33		0.32		3.1		1.32		1.28		3.1
Book value (period end)				40.91		38.84		5.3		40.91		38.84		5.3
Tangible book value (period end) (1)				22.61		21.75		4.0		22.61		21.75		4.0
Average common shares outstanding - basic				63,045,061		67,238,005		(6.2)		65,520,527		67,260,796		(2.6)
Average common shares outstanding - diluted				63,183,411		67,304,442		(6.1)		65,669,970		67,310,584		(2.4)
Period end common shares outstanding				62,307,245		67,254,706		(7.4)		62,307,245		67,254,706		(7.4)
Period end preferred shares outstanding				150,000		150,000		-		150,000		150,000		-
(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,
						2021		2020		% Change
Return on average assets						1.37	%	0.73	%	87.67	%
Return on average assets, excluding
after-tax restructuring and merger-related expenses (1)						1.40		0.77		81.82
Return on average equity						8.40		4.50		86.67
Return on average equity, excluding
after-tax restructuring and merger-related expenses (1)						8.59		4.79		79.33
Return on average tangible equity (1)						14.89		8.61		72.94
Return on average tangible equity, excluding
after-tax restructuring and merger-related expenses (1)						15.22		9.12		66.89
Return on average tangible common equity (1)						16.35		8.94		82.89
Return on average tangible common equity, excluding
after-tax restructuring and merger-related expenses (1)						16.71		9.47		76.45
Yield on earning assets (2)						3.29		3.80		(13.42)
Cost of interest bearing liabilities						0.28		0.63		(55.56)
Net interest spread (2)						3.01		3.17		(5.05)
Net interest margin (2)						3.11		3.37		(7.72)
Efficiency (1) (2)						58.22		56.38		3.26
Average loans to average deposits						78.11		91.66		(14.78)
Annualized net loan charge-offs/average loans						0.02		0.06		(66.67)
Effective income tax rate						19.74		15.88		24.31
						For the Three Months Ended
						Dec. 31,		Sept. 30,		June 30,		Mar. 31,		Dec. 31,
						2021		2021		2021		2021		2020
Return on average assets						1.21	%	0.97	%	1.60	%	1.72	%	1.21	%
Return on average assets, excluding
after-tax restructuring and merger-related expenses (1)						1.21		1.06		1.62		1.74		1.22
Return on average equity						7.56		5.98		9.74		10.33		7.28
Return on average equity, excluding
after-tax restructuring and merger-related expenses (1)						7.58		6.49		9.88		10.43		7.33
Return on average tangible equity (1)						13.62		10.72		17.04		18.22		13.18
Return on average tangible equity, excluding
after-tax restructuring and merger-related expenses (1)						13.66		11.57		17.27		18.39		13.28
Return on average tangible common equity (1)						15.00		11.76		18.67		20.00		14.49
Return on average tangible common equity, excluding
after-tax restructuring and merger-related expenses (1)						15.04		12.70		18.92		20.18		14.60
Yield on earning assets (2)						3.10		3.24		3.32		3.51		3.61
Cost of interest bearing liabilities						0.20		0.25		0.31		0.37		0.45
Net interest spread (2)						2.90		2.99		3.01		3.14		3.16
Net interest margin (2)						2.97		3.08		3.12		3.27		3.31
Efficiency (1) (2)						61.99		60.52		53.97		56.71		57.06
Average loans to average deposits						72.61		75.46		79.82		85.27		89.64
Annualized net loan charge-offs and recoveries /average loans						0.04		0.03		(0.03)		0.02		0.02
Effective income tax rate						18.32		19.34		20.85		19.93		18.13
Trust assets, market value at period end						$   5,644,975		$      5,464,159		$      5,480,995		$      5,244,370		$      5,025,565
(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 sheet					December 31,					September 30,	September 30, 2021
Assets					2021		2020		% Change	2021	to December 31, 2021
Cash and due from banks					$        157,046		$          184,361		(14.8)	$             201,505	(22.1)
Due from banks - interest bearing					1,094,312		721,086		51.8	919,611	19.0
Securities:
	Equity securities, at fair value				13,466		13,047		3.2	13,451	0.1
	Available-for-sale debt securities, at fair value				3,013,462		1,978,136		52.3	2,986,803	0.9
	Held-to-maturity debt securities (fair values of $1,028,452; $768,183
	and $978,494, respectively)				1,004,823		731,212		37.4	953,920	5.3
		Allowance for credit losses - held-to-maturity debt securities			(268)		(326)		17.8	(257)	(4.3)
	Net held-to-maturity debt securities				1,004,555		730,886		37.4	953,663	5.3
		Total securities			4,031,483		2,722,069		48.1	3,953,917	2.0
Loans held for sale					25,277		168,378		(85.0)	32,308	(21.8)
Portfolio loans:
	Commercial real estate				5,538,968		5,705,392		(2.9)	5,657,886	(2.1)
	Commercial and industrial				1,590,320		2,407,438		(33.9)	1,707,214	(6.8)
	Residential real estate				1,721,378		1,720,961		0.0	1,655,229	4.0
	Home equity				605,682		646,387		(6.3)	607,735	(0.3)
	Consumer				277,130		309,055		(10.3)	285,101	(2.8)
Total portfolio loans, net of unearned income					9,733,478		10,789,233		(9.8)	9,913,165	(1.8)
Allowance for credit losses - loans					(121,622)		(185,827)		34.6	(136,605)	11.0
		Net portfolio loans			9,611,856		10,603,406		(9.4)	9,776,560	(1.7)
Premises and equipment, net					229,016		249,421		(8.2)	232,134	(1.3)
Accrued interest receivable					60,844		66,790		(8.9)	61,895	(1.7)
Goodwill and other intangible assets, net					1,151,634		1,163,091		(1.0)	1,154,468	(0.2)
Bank-owned life insurance					350,359		306,038		14.5	349,735	0.2
Other assets					215,298		240,970		(10.7)	209,978	2.5
Total Assets					$  16,927,125		$     16,425,610		3.1	$        16,892,111	0.2
Liabilities
Deposits:
	Non-interest bearing demand				$     4,590,895		$       4,070,835		12.8	$          4,531,958	1.3
	Interest bearing demand				3,380,056		2,839,536		19.0	3,283,444	2.9
	Money market				1,739,750		1,685,927		3.2	1,765,480	(1.5)
	Savings deposits				2,562,510		2,214,565		15.7	2,488,180	3.0
	Certificates of deposit				1,292,652		1,618,510		(20.1)	1,354,252	(4.5)
		Total deposits			13,565,863		12,429,373		9.1	13,423,314	1.1
Federal Home Loan Bank borrowings					183,920		549,003		(66.5)	208,940	(12.0)
Other short-term borrowings					141,893		241,950		(41.4)	152,546	(7.0)
Subordinated debt and junior subordinated debt					132,860		192,291		(30.9)	167,711	(20.8)
		Total borrowings			458,673		983,244		(53.4)	529,197	(13.3)
Accrued interest payable					1,901		4,314		(55.9)	2,495	(23.8)
Other liabilities					207,522		251,942		(17.6)	213,122	(2.6)
Total Liabilities					14,233,959		13,668,873		4.1	14,168,128	0.5
Shareholders' Equity
Preferred stock, no par value; 1,000,000 shares authorized in 2021 and 2020, respectively;
	150,000 shares 6.75% non-cumulative perpetual preferred stock, Series A,
	liquidation preference $150.0 million, issued and outstanding in 2021 and 2020, respectively				144,484		144,484		-	144,484	-
Common stock, $2.0833 par value; 100,000,000 shares authorized in
	2021 and 2020, respectively; 68,081,306, 68,081,306 and 68,081,306 shares
	issued, respectively; 62,307,245, 67,254,706 and 63,838,549 shares				141,834		141,834		-	141,834	-
	outstanding, respectively
Capital surplus					1,635,642		1,634,815		0.1	1,634,086	0.1
Retained earnings					977,765		831,688		17.6	946,746	3.3
Treasury stock (5,774,061, 826,600 and 4,242,757 shares - at cost, respectively)					(199,759)		(25,949)		(669.8)	(146,102)	(36.7)
Accumulated other comprehensive income (loss)					(5,120)		31,359		(116.3)	4,463	(214.7)
Deferred benefits for directors					(1,680)		(1,494)		(12.4)	(1,528)	(9.9)
Total Shareholders' Equity					2,693,166		2,756,737		(2.3)	2,723,983	(1.1)
Total Liabilities and Shareholders' Equity					$  16,927,125		$     16,425,610		3.1	$        16,892,111	0.2

 

 

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,
					2021				2020				2021				2020
					Average	Average			Average	Average			Average	Average			Average	Average
Assets					Balance	Rate			Balance	Rate			Balance	Rate			Balance	Rate
Due from banks - interest bearing					$     1,028,014	0.16	%		$          661,696	0.12	%		$        860,249	0.13	%		$          548,078	0.21	%
Loans, net of unearned income (1)					9,839,726	3.93			11,056,512	4.12			10,380,605	4.01			10,874,763	4.28
Securities: (2)
Taxable					3,295,240	1.56			2,144,038	2.02			2,966,745	1.70			2,281,905	2.35
Tax-exempt (3)					696,695	3.05			594,559	3.44			632,187	3.24			616,808	3.49
Total securities					3,991,935	1.82			2,738,597	2.33			3,598,932	1.97			2,898,713	2.59
Other earning assets					16,539	4.69			42,797	6.91			25,481	5.04			60,054	6.38
Total earning assets (3)					14,876,214	3.10	%		14,499,602	3.61	%		14,865,267	3.29	%		14,381,608	3.80	%
Other assets					2,071,448				2,047,159				2,063,110				2,061,096
Total Assets					$  16,947,662				$     16,546,761				$  16,928,377				$     16,442,704
Liabilities and Shareholders' Equity
Interest bearing demand deposits					$     3,351,982	0.10	%		$       2,730,976	0.16	%		$     3,193,425	0.11	%		$       2,572,248	0.27	%
Money market accounts					1,748,900	0.07			1,672,597	0.16			1,760,540	0.10			1,611,135	0.29
Savings deposits					2,521,850	0.04			2,181,804	0.05			2,425,527	0.04			2,084,576	0.09
Certificates of deposit					1,326,789	0.45			1,663,558	0.67			1,457,730	0.52			1,814,693	0.75
Total interest bearing deposits					8,949,521	0.13			8,248,935	0.23			8,837,222	0.16			8,082,652	0.33
Federal Home Loan Bank borrowings					208,663	1.48			691,183	2.14			343,185	1.80			1,135,934	2.17
Repurchase agreements					138,769	0.10			342,659	0.32			149,001	0.15			357,100	0.48
Subordinated debt and junior subordinated debt					149,879	3.12			192,200	3.97			180,649	3.61			193,693	4.29
Total interest bearing liabilities (4)					9,446,832	0.20	%		9,474,977	0.45	%		9,510,057	0.28	%		9,769,379	0.63	%
Non-interest bearing demand deposits					4,601,270				4,084,889				4,452,590				3,781,583
Other liabilities					189,778				241,959				201,393				240,340
Shareholders' equity					2,709,782				2,744,936				2,764,337				2,651,402
Total Liabilities and Shareholders' Equity					$  16,947,662				$     16,546,761				$  16,928,377				$     16,442,704
Taxable equivalent net interest spread						2.90	%			3.16	%			3.01	%			3.17	%
Taxable equivalent net interest margin						2.97	%			3.31	%			3.11	%			3.37	%
(1) Gross of allowance for credit losses and net of unearned income.  Includes non-accrual and loans held for sale.  Loan fees included in interest income on loans were $4.7 million and $6.7 million for the three months ended December 31, 2021 and 2020, respectively and were $26.3 million and $16.2 million for the twelve months ended December 31, 2021 and 2020, respectively.  As part of loan fees, PPP loan fees were $4.3 million and $5.7 million for the three months ended December 31, 2021 and 2020, respectively, and were $25.3 million and $13.4 million for the twelve months ended December 31, 2021 and 2020, respectively.  Additionally, loan accretion included in interest income on loans acquired from prior acquisitions was $3.0 million and $4.6 million for the three months ended December 31, 2021 and 2020, respectively, and was $13.3 million and $17.0 million for the twelve months ended December 31, 2021 and 2020, 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.
(4) Accretion on interest bearing liabilities acquired from prior acquisitions was $0.6 million and $1.5 million for the three months ended December 31, 2021 and 2020, respectively, and was $3.1 million and $9.5 million for the twelve months ended December 31, 2021 and 2020, respectively.

 

 

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				2021		2021		2021		2021		2020
	Loans, including fees			$          97,432		$          103,206		$          105,968		$          109,358		$          114,582
	Interest and dividends on securities:
		Taxable		12,934		13,481		12,900		11,127		10,892
		Tax-exempt		4,236		4,063		3,952		3,910		4,059
			Total interest and dividends on securities	17,170		17,544		16,852		15,037		14,951
	Other interest income			605		628		507		659		945
Total interest and dividend income				115,207		121,378		123,327		125,054		130,478
Interest expense
	Interest bearing demand deposits			810		815		1,009		1,043		1,099
	Money market deposits			315		350		551		578		678
	Savings deposits			261		244		261		264		280
	Certificates of deposit			1,501		1,726		2,026		2,370		2,797
			Total interest expense on deposits	2,887		3,135		3,847		4,255		4,854
	Federal Home Loan Bank borrowings			780		1,192		1,781		2,414		3,719
	Other short-term borrowings			35		33		40		118		275
	Subordinated debt and junior subordinated debt			1,178		1,743		1,804		1,789		1,918
			Total interest expense	4,880		6,103		7,472		8,576		10,766
Net interest income				110,327		115,275		115,855		116,478		119,712
	Provision for credit losses			(13,559)		(1,730)		(21,025)		(27,958)		(209)
Net interest income after provision for credit losses				123,886		117,005		136,880		144,436		119,921
Non-interest income
	Trust fees			7,441		7,289		7,148		7,631		6,754
	Service charges on deposits			6,592		6,050		4,876		4,894		5,671
	Electronic banking fees			4,465		5,427		5,060		4,365		4,424
	Net securities brokerage revenue			1,579		1,965		1,829		1,524		1,402
	Bank-owned life insurance			2,864		2,656		1,707		1,709		1,750
	Mortgage banking income			2,872		4,563		7,830		4,264		5,442
	Net securities gains (losses)			372		(15)		477		279		691
	Net (loss) / gain on other real estate owned and other assets			(158)		785		4,014		175		18
	Other income			4,682		4,035		3,171		8,367		6,553
			Total non-interest income	30,709		32,755		36,112		33,208		32,705
Non-interest expense
	Salaries and wages			40,420		39,497		37,435		36,890		39,140
	Employee benefits			10,842		10,658		9,268		10,266		10,608
	Net occupancy			6,413		6,825		6,427		7,177		6,771
	Equipment and software			8,352		7,609		7,281		6,765		6,810
	Marketing			2,601		1,848		1,802		2,384		1,675
	FDIC insurance			1,460		1,227		181		1,282		1,278
	Amortization of intangible assets			2,834		2,854		2,873		2,896		3,327
	Restructuring and merger-related expense			177		4,467		1,222		851		484
	Other operating expenses			15,204		19,716		17,323		17,816		17,976
			Total non-interest expense	88,303		94,701		83,812		86,327		88,069
Income before provision for income taxes				66,292		55,059		89,180		91,317		64,557
	Provision for income taxes			12,144		10,651		18,592		18,202		11,703
Net Income				54,148		44,408		70,588		73,115		52,854
Preferred stock dividends				2,531		2,531		2,531		2,531		2,644
Net income available to common shareholders				$          51,617		$            41,877		$            68,057		$            70,584		$            50,210
Taxable equivalent net interest income				$       111,453		$       116,355		$       116,906		$       117,517		$       120,790
Per common share data
Net income per common share - basic				$               0.82		$                0.64		$                1.02		$                1.05		$                0.75
Net income per common share - diluted				0.82		0.64		1.01		1.05		0.75
Net income per common share - diluted, excluding certain items (1)(2)				0.82		0.70		1.03		1.06		0.76
Dividends declared				0.33		0.33		0.33		0.33		0.32
Book value (period end)				40.91		40.41		39.96		39.25		38.84
Tangible book value (period end) (1)				22.61		22.51		22.61		22.21		21.75
Average common shares outstanding - basic				63,045,061		64,931,764		66,894,398		67,263,714		67,238,005
Average common shares outstanding - diluted				63,183,411		65,065,848		67,066,592		67,335,418		67,304,442
Period end common shares outstanding				62,307,245		63,838,549		65,970,149		67,282,134		67,254,706
Period end preferred shares outstanding				150,000		150,000		150,000		150,000		150,000
Full time equivalent employees				2,462		2,425		2,459		2,490		2,612
(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				2021		2021		2021		2021		2020
Non-performing assets:
	Troubled debt restructurings - accruing			$         3,746		$           3,707		$           5,799		$           3,563		$           3,927
	Non-accrual loans:
		Troubled debt restructurings		1,547		1,615		1,664		1,768		1,828
		Other non-accrual loans		34,195		34,644		34,548		32,807		35,052
		Total non-accrual loans		35,742		36,259		36,212		34,575		36,880
		Total non-performing loans		39,488		39,966		42,011		38,138		40,807
	Other real estate and repossessed assets			-		293		773		393		549
		Total non-performing assets		$       39,488		$         40,259		$         42,784		$         38,531		$         41,356
Past due loans (1):
	Loans past due 30-89 days			$       27,152		$         32,682		$         21,233		$         20,602		$         31,596
	Loans past due 90 days or more			7,804		11,252		8,318		12,824		8,846
		Total past due loans		$       34,956		$         43,934		$         29,551		$         33,426		$         40,442
Criticized and classified loans (2):
	Criticized loans			$    248,518		$       290,281		$       319,448		$       340,943		$       362,295
	Classified loans			116,013		127,022		136,927		114,884		132,650
		Total criticized and classified loans		$    364,531		$       417,303		$       456,375		$       455,827		$       494,945
Loans past due 30-89 days / total portfolio loans (3)				0.28	%	0.33	%	0.21	%	0.19	%	0.29	%
Loans past due 90 days or more / total portfolio loans				0.08		0.11		0.08		0.12		0.08
Non-performing loans / total portfolio loans				0.41		0.40		0.41		0.36		0.38
Non-performing assets / total portfolio loans, other
	real estate and repossessed assets			0.41		0.41		0.41		0.36		0.38
Non-performing assets / total assets				0.23		0.24		0.25		0.23		0.25
Criticized and classified loans / total portfolio loans				3.75		4.21		4.41		4.26		4.59
Allowance for credit losses
Allowance for credit losses - loans				$    121,622		$       136,605		$       140,730		$       160,040		$       185,827
Allowance for credit losses - loan commitments				7,775		7,290		5,766		6,731		9,514
Provision for credit losses				(13,559)		(1,730)		(21,025)		(27,958)		(209)
Net loan and deposit account overdraft charge-offs and recoveries				929		842		(689)		648		524
Annualized net loan charge-offs and recoveries / average loans				0.04	%	0.03	%	(0.03)	%	0.02	%	0.02	%
Allowance for credit losses - loans / total portfolio loans				1.25	%	1.38	%	1.36	%	1.50	%	1.72	%
Allowance for credit losses - loans / total portfolio loans excluding PPP loans				1.27	%	1.42	%	1.43	%	1.62	%	1.85	%
Allowance for credit losses - loans / non-performing loans				3.08	x	3.42	x	3.35	x	4.20	x	4.55	x
Allowance for credit losses - loans / non-performing loans and
	loans past due			1.63	x	1.63	x	1.97	x	2.24	x	2.29	x
				Dec. 31,		Sept. 30,		June 30,		Mar. 31,		Dec. 31,
				2021		2021		2021		2021		2020
Capital ratios
Tier I leverage capital				10.02	%	10.10	%	10.42	%	10.74	%	10.51	%
Tier I risk-based capital				14.05		14.18		15.15		14.95		14.72
Total risk-based capital				15.91		16.38		17.68		17.58		17.58
Common equity tier 1 capital ratio (CET 1)				12.77		12.91		13.83		13.65		13.40
Average shareholders' equity to average assets				15.99		16.28		16.44		16.65		16.59
Tangible equity to tangible assets (4)				9.84		10.04		10.34		10.30		10.52
Tangible common equity to tangible assets (4)				8.92		9.12		9.43		9.39		9.58
(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 $162.7 million of PPP loans as of December 31, 2021.
(4) See non-GAAP financial measures for additional information relating to the calculation of this ratio.

 

 

WESBANCO, INC.
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)				2021		2021		2021		2021		2020		2021	2020
Return on average assets, excluding after-tax restructuring and merger-related expenses:
	Net income available to common shareholders			$         51,617		$           41,877		$           68,057		$           70,584		$           50,210		$           232,135	$         119,400
	Plus: after-tax restructuring and merger-related expenses  (1)			140		3,529		965		672		383		5,306	7,683
	Net income available to common shareholders excluding after-tax restructuring and merger-related expenses			51,757		45,406		69,022		71,256		50,593		237,441	127,083
	Average total assets			$ 16,947,662		$    17,057,793		$    17,042,147		$    16,636,258		$    16,546,761		$     16,928,377	$    16,442,704
Return on average assets, excluding after-tax restructuring and merger-related expenses (annualized)  (2)				1.21%		1.06%		1.62%		1.74%		1.22%		1.40%	0.77%
Return on average equity, excluding after-tax restructuring and merger-related expenses:
	Net income available to common shareholders			$         51,617		$           41,877		$           68,057		$           70,584		$           50,210		$           232,135	$         119,400
	Plus: after-tax restructuring and merger-related expenses  (1)			140		3,529		965		672		383		5,306	7,683
	Net income available to common shareholders excluding after-tax restructuring and merger-related expenses			51,757		45,406		69,022		71,256		50,593		237,441	127,083
	Average total shareholders' equity			$   2,709,782		$      2,777,306		$      2,801,455		$      2,770,416		$      2,744,936		$       2,764,337	$      2,651,402
Return on average equity, excluding after-tax  restructuring and merger-related expenses (annualized)  (2)				7.58%		6.49%		9.88%		10.43%		7.33%		8.59%	4.79%
Return on average tangible equity:
	Net income available to common shareholders			$         51,617		$           41,877		$           68,057		$           70,584		$           50,210		$           232,135	$         119,400
	Plus: amortization of intangibles (1)			2,239		2,255		2,270		2,288		2,628		9,051	10,595
	Net income available to common shareholders before amortization of intangibles			53,856		44,132		70,327		72,872		52,838		241,186	129,995
	Average total shareholders' equity			2,709,782		2,777,306		2,801,455		2,770,416		2,744,936		2,764,337	2,651,402
	Less: average goodwill and other intangibles, net of def. tax liability			(1,141,307)		(1,143,522)		(1,145,882)		(1,148,171)		(1,150,184)		(1,144,698)	(1,141,528)
	Average tangible equity			$   1,568,475		$      1,633,784		$      1,655,573		$      1,622,245		$      1,594,752		$       1,619,639	$      1,509,874
Return on average tangible equity (annualized)  (2)				13.62%		10.72%		17.04%		18.22%		13.18%		14.89%	8.61%
	Average tangible common equity			$   1,423,991		$      1,489,300		$      1,511,089		$      1,477,736		$      1,450,243		$       1,475,155	$      1,453,363
Return on average tangible common equity (annualized)  (2)				15.00%		11.76%		18.67%		20.00%		14.49%		16.35%	8.94%
Return on average tangible equity, excluding after-tax restructuring and merger-related expenses:
	Net income available to common shareholders			$         51,617		$           41,877		$           68,057		$           70,584		$           50,210		$           232,135	$         119,400
	Plus: after-tax restructuring and merger-related expenses  (1)			140		3,529		965		672		383		5,306	7,683
	Plus: amortization of intangibles  (1)			2,239		2,255		2,270		2,288		2,628		9,051	10,595
	Net income available to common shareholders before amortization of intangibles
	and excluding after-tax restructuring and merger-related expenses			53,996		47,661		71,292		73,544		53,221		246,492	137,678
	Average total shareholders' equity			2,709,782		2,777,306		2,801,455		2,770,416		2,744,936		2,764,337	2,651,402
	Less: average goodwill and other intangibles, net of def. tax liability			(1,141,307)		(1,143,522)		(1,145,882)		(1,148,171)		(1,150,184)		(1,144,698)	(1,141,528)
	Average tangible equity			$   1,568,475		$      1,633,784		$      1,655,573		$      1,622,245		$      1,594,752		$       1,619,639	$      1,509,874
Return on average tangible equity, excluding after-tax  restructuring and merger-related expenses (annualized)  (2)				13.66%		11.57%		17.27%		18.39%		13.28%		15.22%	9.12%
	Average tangible common equity			$   1,423,991		$      1,489,300		$      1,511,089		$      1,477,736		$      1,450,243		$       1,475,155	$      1,453,363
Return on average tangible common equity, excluding after-tax restructuring and merger-related expenses (annualized)  (2)				15.04%		12.70%		18.92%		20.18%		14.60%		16.71%	9.47%
Efficiency ratio:
	Non-interest expense			$         88,303		$           94,701		$           83,812		$           86,327		$           88,069		$           353,143	$         354,845
	Less: restructuring and merger-related expense			(177)		(4,467)		(1,222)		(851)		(484)		(6,717)	(9,725)
	Non-interest expense excluding restructuring and merger-related expense			88,126		90,234		82,590		85,476		87,585		346,426	345,120
	Net interest income on a fully taxable equivalent basis			111,453		116,355		116,906		117,517		120,790		462,229	483,999
	Non-interest income			30,709		32,755		36,112		33,208		32,705		132,785	128,185
	Net interest income on a fully taxable equivalent basis plus non-interest income			$       142,162		$         149,110		$         153,018		$         150,725		$         153,495		$           595,014	$         612,184
	Efficiency ratio			61.99%		60.52%		53.97%		56.71%		57.06%		58.22%	56.38%
Net income available to common shareholders, excluding after-tax restructuring and merger-related expenses:
	Net income available to common shareholders			$         51,617		$           41,877		$           68,057		$           70,584		$           50,210		$           232,135	$         119,400
	Add: After-tax restructuring and merger-related expenses (1)			140		3,529		965		672		383		5,306	7,683
Net income available to common shareholders, excluding after-tax restructuring and merger-related expenses				$         51,757		$           45,406		$           69,022		$           71,256		$           50,593		$           237,441	$         127,083
Net income per common share - diluted, excluding after-tax restructuring and merger-related expenses:
	Net income per common share - diluted			$              0.82		$               0.64		$               1.01		$               1.05		$               0.75		$                  3.53	$               1.77
	Add: After-tax restructuring and merger-related expenses per common share - diluted (1)			-		0.06		0.02		0.01		0.01		0.09	0.11
Net income per common share - diluted, excluding after-tax restructuring and merger-related expenses				$              0.82		$               0.70		$               1.03		$               1.06		$               0.76		$                  3.62	$               1.88
				Period End
				Dec. 31,		Sept. 30,		June 30,		Mar. 31,		Dec. 31,
				2021		2021		2021		2021		2020
Tangible book value per share:
	Total shareholders' equity			$   2,693,166		$      2,723,983		$      2,780,836		$      2,785,522		$      2,756,737
	Less:  goodwill and other intangible assets, net of def. tax liability			(1,140,111)		(1,142,350)		(1,144,604)		(1,146,874)		(1,149,161)
	Less: preferred shareholder's equity			(144,484)		(144,484)		(144,484)		(144,484)		(144,484)
	Tangible common equity			1,408,571		1,437,149		1,491,748		1,494,164		1,463,092
	Common shares outstanding			62,307,245		63,838,549		65,970,149		67,282,134		67,254,706
Tangible book value per share				$           22.61		$             22.51		$             22.61		$             22.21		$             21.75
Tangible common equity to tangible assets:
	Total shareholders' equity			$   2,693,166		$      2,723,983		$      2,780,836		$      2,785,522		$      2,756,737
	Less:  goodwill and other intangible assets, net of def. tax liability			(1,140,111)		(1,142,350)		(1,144,604)		(1,146,874)		(1,149,161)
	Tangible equity			1,553,055		1,581,633		1,636,232		1,638,648		1,607,576
	Less: preferred shareholder's equity			(144,484)		(144,484)		(144,484)		(144,484)		(144,484)
	Tangible common equity			1,408,571		1,437,149		1,491,748		1,494,164		1,463,092
	Total assets			16,927,125		16,892,111		16,966,867		17,057,788		16,425,610
	Less:  goodwill and other intangible assets, net of def. tax liability			(1,140,111)		(1,142,350)		(1,144,604)		(1,146,874)		(1,149,161)
	Tangible assets			$ 15,787,014		$    15,749,761		$    15,822,263		$    15,910,914		$    15,276,449
Tangible equity to tangible assets				9.84%		10.04%		10.34%		10.30%		10.52%
Tangible common equity to tangible assets				8.92%		9.12%		9.43%		9.39%		9.58%
(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.

 

 

WESBANCO, INC.
Additional 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)				2021		2021		2021		2021		2020		2021	2020
Pre-tax, pre-provision income:
	Income before provision for income taxes			$         66,292		$           55,059		$           89,180		$           91,317		$           64,557		$       301,849	$         145,079
	Add: provision for credit losses			(13,559)		(1,730)		(21,025)		(27,958)		(209)		(64,274)	107,741
Pre-tax, pre-provision income				$         52,733		$           53,329		$           68,155		$           63,359		$           64,348		$       237,575	$         252,820
Pre-tax, pre-provision income, excluding restructuring and merger-related expenses:
	Income before provision for income taxes			$         66,292		$           55,059		$           89,180		$           91,317		$           64,557		$       301,849	$         145,079
	Add: provision for credit losses			(13,559)		(1,730)		(21,025)		(27,958)		(209)		(64,274)	107,741
	Add: restructuring and merger-related expenses			177		4,467		1,222		851		484		6,717	9,725
Pre-tax, pre-provision income, excluding restructuring and merger-related expenses				$         52,910		$           57,796		$           69,377		$           64,210		$           64,832		$       244,292	$         262,545
Return on average assets, excluding certain items (1):
	Income before provision for income taxes			$         66,292		$           55,059		$           89,180		$           91,317		$           64,557		$       301,849	$         145,079
	Add: provision for credit losses			(13,559)		(1,730)		(21,025)		(27,958)		(209)		(64,274)	107,741
	Add: restructuring and merger-related expenses			177		4,467		1,222		851		484		6,717	9,725
Pre-tax, pre-provision income, excluding restructuring and merger-related expenses				52,910		57,796		69,377		64,210		64,832		244,292	262,545
	Average total assets			$ 16,947,662		$    17,057,793		$    17,042,147		$    16,636,258		$    16,546,761		$ 16,928,377	$    16,442,704
Return on average assets, excluding certain items (annualized)  (1) (2)				1.24%		1.34%		1.63%		1.57%		1.56%		1.44%	1.60%
Return on average equity, excluding certain items (1):
	Income before provision for income taxes			$         66,292		$           55,059		$           89,180		$           91,317		$           64,557		$       301,849	$         145,079
	Add: provision for credit losses			(13,559)		(1,730)		(21,025)		(27,958)		(209)		(64,274)	107,741
	Add: restructuring and merger-related expenses			177		4,467		1,222		851		484		6,717	9,725
Pre-tax, pre-provision income, excluding restructuring and merger-related expenses				52,910		57,796		69,377		64,210		64,832		244,292	262,545
	Average total shareholders' equity			$   2,709,782		$      2,777,306		$      2,801,455		$      2,770,416		$      2,744,936		$   2,764,337	$      2,651,402
Return on average equity, excluding certain items (annualized) (1) (2)				7.75%		8.26%		9.93%		9.40%		9.40%		8.84%	9.90%
Return on average tangible equity, excluding certain items (1):
	Income before provision for income taxes			$         66,292		$           55,059		$           89,180		$           91,317		$           64,557		$       301,849	$         145,079
	Add: provision for credit losses			(13,559)		(1,730)		(21,025)		(27,958)		(209)		(64,274)	107,741
	Add: amortization of intangibles			2,834		2,854		2,873		2,896		3,327		11,457	13,411
	Add: restructuring and merger-related expenses			177		4,467		1,222		851		484		6,717	9,725
Income before provision, restructuring and merger-related expenses and amortization of intangibles				55,744		60,650		72,250		67,106		68,159		255,749	275,956
	Average total shareholders' equity			2,709,782		2,777,306		2,801,455		2,770,416		2,744,936		2,764,337	2,651,402
	Less: average goodwill and other intangibles, net of def. tax liability			(1,141,307)		(1,143,522)		(1,145,882)		(1,148,171)		(1,150,184)		(1,144,698)	(1,141,528)
	Average tangible equity			$   1,568,475		$      1,633,784		$      1,655,573		$      1,622,245		$      1,594,752		$   1,619,639	$      1,509,874
Return on average tangible equity, excluding certain items (annualized) (1) (2)				14.10%		14.73%		17.50%		16.78%		17.00%		15.79%	18.28%
	Average tangible common equity			$   1,423,991		$      1,489,300		$      1,511,089		$      1,477,736		$      1,450,243		$   1,475,155	$      1,453,363
Return on average tangible common equity, excluding certain items (annualized) (1) (2)				15.53%		16.16%		19.18%		18.42%		18.70%		17.34%	18.99%
(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.

FAQ

What are WesBanco's earnings results for Q4 2021?

WesBanco reported a net income of $51.6 million for Q4 2021, with diluted earnings per share of $0.82.

How did WesBanco perform in 2021 compared to 2020?

In 2021, WesBanco's net income was $232.1 million, significantly up from $119.4 million in 2020.

What growth metrics did WesBanco report for 2021?

WesBanco saw a 13.5% year-over-year increase in deposits and record trust assets of $5.6 billion.

What challenges did WesBanco face in Q4 2021?

WesBanco faced a 7.8% decrease in net interest income and a 6.1% decline in non-interest income in Q4 2021.

How much stock did WesBanco repurchase in Q4 2021?

WesBanco repurchased approximately 1.6 million shares of its common stock in Q4 2021.