WesBanco Announces Fourth Quarter 2022 Financial Results

Rhea-AI Summary

WesBanco, Inc. (Nasdaq: WSBC) reported fourth-quarter 2022 net income of $49.7 million, translating to diluted earnings per share of $0.84, slightly down from $51.6 million and $0.82 for Q4 2021. For the full year, net income was $182.0 million, or $3.02 per diluted share, compared to $232.1 million and $3.53 in 2021. Loan growth was robust at 11.7% year-over-year, while net interest margin improved by 16 basis points to 3.49%. Non-interest income fell 9.6% due to lower mortgage banking income, but non-interest expenses increased just 2.6% year-over-year, reflecting cost control efforts. The company remains well-capitalized with strong credit metrics.

Positive

• Loan growth of 11.7% year-over-year reflects strong market performance.
• Net interest margin increased to 3.49%, representing a 52 basis point gain year-over-year.
• Non-interest expense growth was contained to 2.6%, indicating effective cost management.
• WesBanco maintains strong regulatory capital ratios, enhancing financial stability.

Negative

• Annual net income declined by 21.6% from 2021, impacting shareholder returns.
• Non-interest income decreased by 11.6% for the year, primarily due to reduced mortgage banking income.

WHEELING, W.Va., Jan. 24, 2023 /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, 2022.  Net income available to common shareholders for the fourth quarter of 2022 was $49.7 million, with diluted earnings per share of $0.84, compared to $51.6 million and $0.82 per diluted share, respectively, for the fourth quarter of 2021.  For the twelve months ended December 31, 2022, net income was $182.0 million, or $3.02 per diluted share, compared to $232.1 million, or $3.53 per diluted share, for the 2021 period, which included a release of provision for credit losses of $64.3 million, or $51.6 million net of tax.  Net income available to common shareholders, excluding after-tax restructuring and merger-related expenses, for the three months ended December 31, 2022, was $49.7 million, or $0.84 per diluted share, as compared to $51.8 million and $0.82 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, 2022 was $183.3 million, or $3.04 per diluted share, as compared to $237.4 million, or $3.62 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,
			2022				2021					2022				2021
(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)			$       49,688		$       0.84		$       51,757		$       0.82			$     183,349		$       3.04		$     237,441		$       3.62
Less: After-tax restructuring and merger- related expenses			(9)		-		(140)		-			(1,361)		(0.02)		(5,306)		(0.09)
Net income available to common shareholders (GAAP)			$       49,679		$       0.84		$       51,617		$       0.82			$     181,988		$       3.02		$     232,135		$       3.53
(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, 2022:

• Total loan growth was 11.7% year-over-year, and 4.2%, or 16.8% annualized, when compared to September 30, 2022, excluding Small Business Administration Payroll Protection Program ("SBA PPP"), reflecting the strength of our markets and lending teams
• Key credit quality metrics such as non-performing assets, total 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 prior four quarters)
• Fourth quarter net interest margin increased 16 basis points sequentially to 3.49%
• Deposits, excluding certificates of deposit ("CDs"), were essentially flat compared to the prior year quarter, as growth in non-interest bearing demand deposits and savings accounts offset a decline in interest-bearing demand deposit balances
• Non-interest expense increased just 2.6% year-over-year, excluding restructuring and merger-related expenses, which demonstrates our commitment to strong discretionary cost control in an inflationary environment
• WesBanco remains well-capitalized with solid liquidity and a strong balance sheet
• Returns on average assets and tangible equity were 1.18% and 16.05%, respectively

"WesBanco had another successful year during 2022 as our operational strategies and core advantages were evident," said Todd F. Clossin, President and Chief Executive Officer of WesBanco.  "We have begun to realize the benefit of our strategic growth initiatives, as we continue to post solid loan growth, as well as organic growth across our wealth management businesses.  We continued to benefit from our core funding advantage, strong credit standards, and focus on discretionary cost control.  Further, we received numerous accolades during the year recognizing us for financial performance, employee satisfaction, customer service, and trust.  I am exceptionally pleased that we were the only midsize bank to be ranked in the top ten as one of America's Best Banks and Best Midsize Employers."

Mr. Clossin added, "We remain focused on ensuring a strong organization with sound credit quality, solid liquidity, and strong balance sheet.  We have the right markets, teams, leadership, and strategies, combined with our core strengths, to provide long-term success for our shareholders, customers, and employees.  I am excited for our future growth opportunities."

Balance Sheet
Loan growth for the fourth quarter of 2022 reflects strong performance by our commercial and consumer lending teams and more 1-to-4 family residential mortgages retained on the balance sheet.  As of December 31, 2022, total portfolio loans were $10.7 billion, which increased 11.7% year-over-year, and 4.2%, or 16.8% annualized, when compared to September 30, 2022, excluding SBA PPP loans, driven by strong growth across our markets.  Commercial real estate payoffs during the fourth quarter moderated, as expected, totaling approximately $63 million, as compared to $173 million in the third quarter and $160 million in the fourth quarter of last year.  The fourth quarter of 2022 included the forgiveness of approximately $5 million of SBA PPP loans, with approximately $8 million remaining in the loan portfolio (net of deferred fees).

Deposits, excluding CDs, were essentially flat to the prior year period but decreased 1.7%, or 6.7% annualized, quarter-over-quarter reflecting the impact of inflationary pressures and rising costs across the economy.  Total deposits, as of December 31, 2022, were $13.1 billion, a decrease of $434.8 million year-over-year due primarily to a $406.8 million reduction in CDs. 

Credit Quality
As of December 31, 2022, total loans past due, non-performing loans, and non-performing assets as percentages of the loan portfolio and total assets have remained relatively low, from a historical perspective, and consistent throughout the last five quarters.  Total loans past due as a percent of the loan portfolio decreased 26 basis points from the third quarter, while criticized and classified loans as a percent of the loan portfolio decreased 9 basis points to 2.34%.  In addition, total loans past due and criticized and classified loans as percentages of the loan portfolio decreased 17 and 141 basis points year-over-year, respectively.  For the fourth quarter, net loan charge-offs to average loans totaled $0.5 million, as compared to $0.9 million in the prior year period.  The allowance for credit losses to total portfolio loans at December 31, 2022 was $117.8 million, or 1.10% of total loans, reflecting increases in current loan growth and projected macroeconomic forecasts, offset by continued improvements in COVID-impacted borrowers.  During the prior year three- and twelve- month periods ending December 31, 2021, we recorded negative provisions for credit losses of $13.6 million and $64.3 million, respectively, due to significantly improved macroeconomic forecasts and other factors, as compared to provisions of $3.1 million and a negative $1.7 million, respectively, in the current year.

Net Interest Margin and Income
The net interest margin of 3.49% for the fourth quarter of 2022 increased 16 basis points sequentially and 52 basis points year-over-year, which reflects the 425 basis point increase in the federal fund rate during 2022, as well as our successful deployment of excess cash into higher-yielding loans.  Variable rate securities, which represent 18% of the total securities portfolio also contributed to the margin.  While our robust legacy deposit base provides a pricing advantage, we are not immune to the impact of rising interest rates on our funding sources.  Deposit funding costs increased 44 basis points year-over-year to 57 basis points for the fourth quarter of 2022, or 29 basis points when including non-interest bearing deposits.  This reflects a total deposit beta of 8%, when compared to the 375 basis point increase in the federal fund rate through November 2022.  Further, total deposit funding costs also increased 20 basis points on a sequential quarter basis.  Accretion from acquisitions benefited the fourth quarter net interest margin by 5 basis points, as compared to 9 basis points in the prior year period.  Lastly, the forgiveness of SBA PPP loans had no material impact on the fourth quarter of 2022 net interest margin, as compared to a net 9 basis point benefit in the prior year period.

Net interest income increased $19.5 million, or 17.7%, during the fourth quarter of 2022, as compared to the same quarter of 2021, reflecting loan growth and the benefit of rising rates on loan and securities yields, which more than offset higher funding costs, lower accretion from purchase accounting, and lower SBA PPP-related loan income.  For the twelve months ended December 31, 2022, net interest income increased $16.4 million, or 3.6%, primarily due to the reasons discussed for the three-month period comparison.

Non-Interest Income
For the fourth quarter of 2022, non-interest income of $27.8 million decreased $2.9 million, or 9.6%, from the fourth quarter of 2021, driven primarily by lower mortgage banking income.  Mortgage banking income decreased $2.3 million year-over-year due to a reduction in residential mortgage originations, primarily driven by the higher interest rate environment, and our retention of more residential mortgages on the balance sheet.  Fourth quarter mortgage originations decreased 53% year-over-year to $179 million, with approximately 80% retained, as compared to 70% last year.  Net securities brokerage revenue increased $1.0 million year-over-year to a record $2.6 million during the quarter due to organic growth.

Non-interest income, for the twelve months ended December 31, 2022, decreased $15.4 million, or 11.6%, to $117.4 million.  In addition to the items discussed above, both service charges on deposits and electronic banking fees increased year-over-year to $26.3 million and $20.0 million, respectively, reflecting increased general consumer spending.  Bank-owned life insurance of $10.7 million increased $1.8 million year-over-year due to higher death benefits and the impact of new policies purchased during the fourth quarter of 2021.  Trust fees decreased $2.0 million year-over-year to $27.6 million, primarily due to the declines in the equity markets on the value of trust assets, which more than offset net organic growth.  The net gain on other real estate owned and other assets of $0.5 million reflects the change in the fair value of an underlying equity investment held by WesBanco Community Development Corporation during the second quarter of 2022, as compared to a net gain of $3.8 million for the same investment in the prior year.

Non-Interest Expense
Excluding restructuring and merger-related expenses, non-interest expense for the three months ended December 31, 2022 totaled $90.4 million, an increase of just 2.6% year-over-year, reflecting discretionary cost control and a credit from adjustments to the mortgage incentive compensation plan.  Salaries and wages increased $2.2 million, or 5.4%, compared to the prior year period due to higher salary expense related to merit increases and higher staffing levels.  Employee benefits of $9.2 million decreased $1.6 million from last year due primarily to a higher health insurance liability recorded in the prior year period, as well as a decrease in this quarter's pension expense.

On a similar basis, non-interest expense for the twelve months ended December 31, 2022 increased $8.8 million, or 2.5%, due primarily to higher salaries and wages, as described above, and higher FDIC insurance, which reflects the benefit to last year's FDIC insurance calculation from the large negative credit loss provision recognized during 2021, partially offset by lower employee benefits from lower deferred compensation expense and discretionary cost control.

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, 2022, Tier I leverage was 9.90%, Tier I risk-based capital ratio was 12.33%, common equity Tier 1 capital ratio ("CET 1") was 11.20%, and total risk-based capital was 15.11%.

Conference Call and Webcast
WesBanco will host a conference call to discuss the Company's financial results for the fourth quarter of 2022 at 10:00 a.m. ET on Wednesday, January 25, 2023. 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. Please log in or dial in at least 10 minutes prior to the start time to ensure a connection.

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 8654312. The replay will begin at approximately 12:00 p.m. ET on January 25, 2023 and end at 12 a.m. ET on February 8, 2023. 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, 2021 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, 2022, June 30, 2022 and September 30, 2022, 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 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 Consumer Financial Protection Bureau, 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.  Furthermore, our strong financial performance and employee focus has earned us recognition by Forbes as both one of America's Best Banks and Best Midsize Employers – the only midsize bank making the top ten of both rankings.  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 $4.9 billion of assets under management (as of December 31, 2022).  WesBanco's banking subsidiary, WesBanco Bank, Inc., operates 194 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				2022		2021		% Change		2022		2021		% Change
	Loans, including fees			$       123,307		$         97,432		26.6		$       422,401		$       415,965		1.5
	Interest and dividends on securities:
		Taxable		18,655		12,934		44.2		66,123		50,401		31.2
		Tax-exempt		4,853		4,236		14.6		18,818		16,161		16.4
			Total interest and dividends on securities	23,508		17,170		36.9		84,941		66,562		27.6
	Other interest income			2,103		605		247.6		6,314		2,440		158.8
Total interest and dividend income				148,918		115,207		29.3		513,656		484,967		5.9
Interest expense
	Interest bearing demand deposits			7,264		810		796.8		12,181		3,669		232.0
	Money market deposits			1,890		315		500.0		3,562		1,803		97.6
	Savings deposits			2,454		261		840.2		4,115		1,031		299.1
	Certificates of deposit			742		1,501		(50.6)		4,089		7,623		(46.4)
			Total interest expense on deposits	12,350		2,887		327.8		23,947		14,126		69.5
	Federal Home Loan Bank borrowings			2,634		780		237.7		3,968		6,167		(35.7)
	Other short-term borrowings			324		35		825.7		568		227		150.2
	Subordinated debt and junior subordinated debt			3,736		1,178		217.1		10,860		6,514		66.7
			Total interest expense	19,044		4,880		290.2		39,343		27,034		45.5
Net interest income				129,874		110,327		17.7		474,313		457,933		3.6
	Provision for credit losses			3,123		(13,559)		123.0		(1,663)		(64,274)		97.4
Net interest income after provision for credit losses				126,751		123,886		2.3		475,976		522,207		(8.9)
Non-interest income
	Trust fees			6,672		7,441		(10.3)		27,551		29,511		(6.6)
	Service charges on deposits			6,762		6,592		2.6		26,281		22,412		17.3
	Electronic banking fees			4,695		4,465		5.2		20,002		19,318		3.5
	Net securities brokerage revenue			2,556		1,579		61.9		9,525		6,896		38.1
	Bank-owned life insurance			2,464		2,864		(14.0)		10,728		8,936		20.1
	Mortgage banking income			621		2,872		(78.4)		5,129		19,528		(73.7)
	Net securities (losses)/gains			(600)		372		(261.3)		(1,777)		1,113		(259.7)
	Net gain/(loss) on other real estate owned and other assets			550		(158)		448.1		482		4,816		(90.0)
	Other income			4,050		4,682		(13.5)		19,470		20,255		(3.9)
			Total non-interest income	27,770		30,709		(9.6)		117,391		132,785		(11.6)
Non-interest expense
	Salaries and wages			42,606		40,420		5.4		167,028		154,242		8.3
	Employee benefits			9,198		10,842		(15.2)		37,771		41,033		(7.9)
	Net occupancy			6,262		6,413		(2.4)		26,105		26,843		(2.7)
	Equipment and software			8,712		8,352		4.3		32,508		30,006		8.3
	Marketing			1,788		2,601		(31.3)		9,335		8,634		8.1
	FDIC insurance			2,051		1,460		40.5		7,901		4,150		90.4
	Amortization of intangible assets			2,541		2,834		(10.3)		10,278		11,457		(10.3)
	Restructuring and merger-related expense			11		177		(93.8)		1,723		6,717		(74.3)
	Other operating expenses			17,286		15,204		13.7		64,317		70,061		(8.2)
			Total non-interest expense	90,455		88,303		2.4		356,966		353,143		1.1
Income before provision for income taxes				64,066		66,292		(3.4)		236,401		301,849		(21.7)
	Provision for income taxes			11,856		12,144		(2.4)		44,288		59,589		(25.7)
Net Income				52,210		54,148		(3.6)		192,113		242,260		(20.7)
Preferred stock dividends				2,531		2,531		-		10,125		10,125		-
Net income available to common shareholders				$         49,679		$         51,617		(3.8)		$       181,988		$       232,135		(21.6)
Taxable equivalent net interest income				$      131,164		$      111,453		17.7		$      479,315		$      462,229		3.7
Per common share data
Net income per common share - basic				$              0.84		$              0.82		2.4		$              3.03		$              3.54		(14.4)
Net income per common share - diluted				0.84		0.82		2.4		3.02		3.53		(14.4)
Net income per common share - diluted, excluding certain items (1)(2)				0.84		0.82		2.4		3.04		3.62		(16.0)
Dividends declared				0.35		0.33		6.1		1.37		1.32		3.8
Book value (period end)				38.55		40.91		(5.8)		38.55		40.91		(5.8)
Tangible book value (period end) (1)				19.43		22.61		(14.1)		19.43		22.61		(14.1)
Average common shares outstanding - basic				59,188,238		63,045,061		(6.1)		60,047,177		65,520,527		(8.4)
Average common shares outstanding - diluted				59,374,204		63,183,411		(6.0)		60,215,374		65,669,970		(8.3)
Period end common shares outstanding				59,198,963		62,307,245		(5.0)		59,198,963		62,307,245		(5.0)
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.

 

WESBANCO, INC.
Consolidated Selected Financial Highlights																	Page 6
(unaudited, dollars in thousands)
Selected ratios
						For the Twelve Months Ended
						December 31,
						2022		2021		% Change
Return on average assets						1.08	%	1.37	%	(21.17)	%
Return on average assets, excluding
after-tax restructuring and merger-related expenses (1)						1.09		1.40		(22.14)
Return on average equity						7.23		8.40		(13.93)
Return on average equity, excluding
after-tax restructuring and merger-related expenses (1)						7.29		8.59		(15.13)
Return on average tangible equity (1)						13.78		14.89		(7.45)
Return on average tangible equity, excluding
after-tax restructuring and merger-related expenses (1)						13.88		15.22		(8.80)
Return on average tangible common equity (1)						15.39		16.35		(5.87)
Return on average tangible common equity, excluding
after-tax restructuring and merger-related expenses (1)						15.50		16.71		(7.24)
Yield on earning assets (2)						3.47		3.29		5.47
Cost of interest bearing liabilities						0.42		0.28		50.00
Net interest spread (2)						3.05		3.01		1.33
Net interest margin (2)						3.20		3.11		2.89
Efficiency (1) (2)						59.53		58.22		2.25
Average loans to average deposits						74.21		78.11		(4.99)
Annualized net loan charge-offs/average loans						0.02		0.02		-
Effective income tax rate						18.73		19.74		(5.12)
						For the Three Months Ended
						Dec. 31,		Sept. 30,		June 30,		Mar. 31,		Dec. 31,
						2022		2022		2022		2022		2021
Return on average assets						1.18	%	1.19	%	0.95	%	0.99	%	1.21	%
Return on average assets, excluding
after-tax restructuring and merger-related expenses (1)						1.18		1.19		0.95		1.02		1.21
Return on average equity						8.18		8.05		6.43		6.35		7.56
Return on average equity, excluding
after-tax restructuring and merger-related expenses (1)						8.18		8.06		6.43		6.54		7.58
Return on average tangible equity (1)						16.05		15.39		12.35		11.67		13.62
Return on average tangible equity, excluding
after-tax restructuring and merger-related expenses (1)						16.05		15.41		12.36		12.01		13.66
Return on average tangible common equity (1)						18.09		17.23		13.80		12.90		15.00
Return on average tangible common equity, excluding
after-tax restructuring and merger-related expenses (1)						18.10		17.25		13.82		13.27		15.04
Yield on earning assets (2)						4.00		3.59		3.20		3.07		3.10
Cost of interest bearing liabilities						0.82		0.41		0.26		0.19		0.20
Net interest spread (2)						3.18		3.18		2.94		2.88		2.90
Net interest margin (2)						3.49		3.33		3.03		2.95		2.97
Efficiency (1) (2)						56.91		58.13		61.91		61.73		61.99
Average loans to average deposits						78.43		75.01		72.36		71.05		72.61
Annualized net loan charge-offs and recoveries /average loans						0.02		0.04		0.00		0.00		0.04
Effective income tax rate						18.51		18.85		19.35		18.26		18.32
Trust assets, market value at period end						$   4,878,479		$   4,622,878		$   4,803,043		$   5,412,342		$   5,644,975
(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,	December 31, 2022
Assets					2022		2021		% Change	2022	to Sept. 30, 2022
Cash and due from banks					$       166,182		$       157,046		5.8	$          212,341	(21.7)
Due from banks - interest bearing					242,229		1,094,312		(77.9)	166,215	45.7
Securities:
	Equity securities, at fair value				11,506		13,466		(14.6)	11,964	(3.8)
	Available-for-sale debt securities, at fair value				2,529,140		3,013,462		(16.1)	2,645,748	(4.4)
	Held-to-maturity debt securities (fair values of $1,084,390; $1,028,452
	and $1,065,833, respectively)				1,248,629		1,004,823		24.3	1,262,467	(1.1)
		Allowance for credit losses, held-to-maturity debt securities			(220)		(268)		17.9	(225)	2.2
	Net held-to-maturity debt securities				1,248,409		1,004,555		24.3	1,262,242	(1.1)
		Total securities			3,789,055		4,031,483		(6.0)	3,919,954	(3.3)
Loans held for sale					8,249		25,277		(67.4)	12,887	(36.0)
Portfolio loans:
	Commercial real estate				6,061,344		5,538,968		9.4	5,831,384	3.9
	Commercial and industrial				1,579,395		1,590,320		(0.7)	1,516,856	4.1
	Residential real estate				2,140,584		1,721,378		24.4	2,010,344	6.5
	Home equity				695,065		605,682		14.8	609,765	14.0
	Consumer				226,340		277,130		(18.3)	309,313	(26.8)
Total portfolio loans, net of unearned income					10,702,728		9,733,478		10.0	10,277,662	4.1
Allowance for credit losses - loans					(117,790)		(121,622)		3.2	(114,584)	(2.8)
		Net portfolio loans			10,584,938		9,611,856		10.1	10,163,078	4.2
Premises and equipment, net					220,892		229,016		(3.5)	221,355	(0.2)
Accrued interest receivable					68,522		60,844		12.6	63,375	8.1
Goodwill and other intangible assets, net					1,141,355		1,151,634		(0.9)	1,143,896	(0.2)
Bank-owned life insurance					352,361		350,359		0.6	350,806	0.4
Other assets					358,122		215,298		66.3	350,840	2.1
Total Assets					$  16,931,905		$  16,927,125		0.0	$    16,604,747	2.0
Liabilities
Deposits:
	Non-interest bearing demand				$    4,700,438		$    4,590,895		2.4	$      4,736,722	(0.8)
	Interest bearing demand				3,119,807		3,380,056		(7.7)	3,201,714	(2.6)
	Money market				1,684,023		1,739,750		(3.2)	1,772,481	(5.0)
	Savings deposits				2,741,004		2,562,510		7.0	2,741,937	(0.0)
	Certificates of deposit				885,818		1,292,652		(31.5)	991,512	(10.7)
		Total deposits			13,131,090		13,565,863		(3.2)	13,444,366	(2.3)
Federal Home Loan Bank borrowings					705,000		183,920		283.3	56,998	NM
Other short-term borrowings					135,069		141,893		(4.8)	127,983	5.5
Subordinated debt and junior subordinated debt					281,404		132,860		111.8	281,179	0.1
		Total borrowings			1,121,473		458,673		144.5	466,160	140.6
Accrued interest payable					4,593		1,901		141.6	4,358	5.4
Other liabilities					248,087		207,522		19.5	294,211	(15.7)
Total Liabilities					14,505,243		14,233,959		1.9	14,209,095	2.1
Shareholders' Equity
Preferred stock, no par value; 1,000,000 shares authorized; 150,000 shares
	6.75% non-cumulative perpetual preferred stock, Series A, liquidation
	preference $150.0 million, issued and outstanding, respectively				144,484		144,484		-	144,484	-
Common stock, $2.0833 par value; 100,000,000 shares authorized;
	68,081,306 shares issued; 59,198,963, 62,307,245 and 59,304,505
	shares outstanding, respectively				141,834		141,834		-	141,834	-
Capital surplus					1,635,877		1,635,642		0.0	1,634,280	0.1
Retained earnings					1,077,675		977,765		10.2	1,048,532	2.8
Treasury stock (8,882,343,  5,774,061 and 8,776,801 shares - at cost, respectively)					(308,964)		(199,759)		(54.7)	(305,033)	(1.3)
Accumulated other comprehensive loss					(262,416)		(5,120)		NM	(266,640)	1.6
Deferred benefits for directors					(1,828)		(1,680)		(8.8)	(1,805)	(1.3)
Total Shareholders' Equity					2,426,662		2,693,166		(9.9)	2,395,652	1.3
Total Liabilities and Shareholders' Equity					$  16,931,905		$  16,927,125		0.0	$    16,604,747	2.0
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,
					2022				2021				2022				2021
					Average	Average			Average	Average			Average	Average			Average	Average
Assets					Balance	Rate			Balance	Rate			Balance	Rate			Balance	Rate
Due from banks - interest bearing					$       178,706	4.32	%		$    1,028,014	0.16	%		$       611,482	0.94	%		$       860,249	0.13	%
Loans, net of unearned income (1)					10,456,648	4.68			9,839,726	3.93			10,083,925	4.19			10,380,605	4.01
Securities: (2)
Taxable					3,429,372	2.16			3,295,240	1.56			3,461,414	1.91			2,966,745	1.70
Tax-exempt (3)					811,593	3.00			696,695	3.05			789,564	3.02			632,187	3.24
Total securities					4,240,965	2.32			3,991,935	1.82			4,250,978	2.12			3,598,932	1.97
Other earning assets					19,494	3.20			16,539	4.69			15,265	3.66			25,481	5.04
Total earning assets (3)					14,895,813	4.00	%		14,876,214	3.10	%		14,961,650	3.47	%		14,865,267	3.29	%
Other assets					1,790,117				2,071,448				1,917,891				2,063,110
Total Assets					$  16,685,930				$  16,947,662				$  16,879,541				$  16,928,377
Liabilities and Shareholders' Equity
Interest bearing demand deposits					$    3,169,673	0.91	%		$    3,351,982	0.10	%		$    3,314,384	0.37	%		$    3,193,425	0.11	%
Money market accounts					1,739,874	0.43			1,748,900	0.07			1,774,152	0.20			1,760,540	0.10
Savings deposits					2,726,647	0.36			2,521,850	0.04			2,692,568	0.15			2,425,527	0.04
Certificates of deposit					931,853	0.32			1,326,789	0.45			1,098,614	0.37			1,457,730	0.52
Total interest bearing deposits					8,568,047	0.57			8,949,521	0.13			8,879,718	0.27			8,837,222	0.16
Federal Home Loan Bank borrowings					282,934	3.69			208,663	1.48			175,104	2.27			343,185	1.80
Repurchase agreements					136,099	0.94			138,769	0.10			146,590	0.39			149,001	0.15
Subordinated debt and junior subordinated debt					281,265	5.27			149,879	3.12			248,192	4.38			180,649	3.61
Total interest bearing liabilities (4)					9,268,345	0.82	%		9,446,832	0.20	%		9,449,604	0.42	%		9,510,057	0.28	%
Non-interest bearing demand deposits					4,763,773				4,601,270				4,708,758				4,452,590
Other liabilities					243,051				189,778				205,670				201,393
Shareholders' equity					2,410,761				2,709,782				2,515,509				2,764,337
Total Liabilities and Shareholders' Equity					$  16,685,930				$  16,947,662				$  16,879,541				$  16,928,377
Taxable equivalent net interest spread						3.18	%			2.90	%			3.05	%			3.01	%
Taxable equivalent net interest margin						3.49	%			2.97	%			3.20	%			3.11	%
(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 $0.8 million and $4.7 million for the three months ended December 31, 2022 and 2021, respectively, and were $8.8 million and $26.3 million for the twelve months ended December 31, 2022 and 2021, respectively.  As part of loan fees, PPP loan fees were $0.2 million and $4.3 million for the three months ended December 31, 2022 and 2021, respectively, and $5.9 million and $25.3 million for the twelve months ended December 31, 2022 and 2021, respectively.  Additionally, loan accretion included in interest income on loans acquired from prior acquisitions was $1.8 million and $3.0 million for the three months ended December 31, 2022 and 2021, respectively and $8.0 million and $13.3 million for the twelve months ended December 31, 2022 and 2021, 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 $0.2 million and $0.6 million for the three months ended December 31, 2022 and 2021, respectively, and $1.1 million and $3.1 million for the twelve months ended December 31, 2022 and 2021, 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				2022		2022		2022		2022		2021
	Loans, including fees			$       123,307		$       109,562		$         96,412		$         93,121		$         97,432
	Interest and dividends on securities:
		Taxable		18,655		17,531		15,825		14,112		12,934
		Tax-exempt		4,853		4,916		4,706		4,344		4,236
			Total interest and dividends on securities	23,508		22,447		20,531		18,456		17,170
	Other interest income			2,103		2,108		1,504		597		605
Total interest and dividend income				148,918		134,117		118,447		112,174		115,207
Interest expense
	Interest bearing demand deposits			7,264		2,953		1,153		811		810
	Money market deposits			1,890		968		383		321		315
	Savings deposits			2,454		1,067		330		264		261
	Certificates of deposit			742		958		1,116		1,273		1,501
			Total interest expense on deposits	12,350		5,946		2,982		2,669		2,887
	Federal Home Loan Bank borrowings			2,634		348		411		575		780
	Other short-term borrowings			324		147		48		48		35
	Subordinated debt and junior subordinated debt			3,736		3,175		2,778		1,171		1,178
			Total interest expense	19,044		9,616		6,219		4,463		4,880
Net interest income				129,874		124,501		112,228		107,711		110,327
	Provision for credit losses			3,123		(535)		(812)		(3,438)		(13,559)
Net interest income after provision for credit losses				126,751		125,036		113,040		111,149		123,886
Non-interest income
	Trust fees			6,672		6,517		6,527		7,835		7,441
	Service charges on deposits			6,762		6,942		6,487		6,090		6,592
	Electronic banking fees			4,695		4,808		5,154		5,345		4,465
	Net securities brokerage revenue			2,556		2,491		2,258		2,220		1,579
	Bank-owned life insurance			2,464		1,999		2,384		3,881		2,864
	Mortgage banking income			621		1,257		1,328		1,923		2,872
	Net securities (losses)/gains			(600)		656		(1,183)		(650)		372
	Net gain/(loss) on other real estate owned and other assets			550		2,040		(1,302)		(806)		(158)
	Other income			4,050		5,546		5,330		4,544		4,682
			Total non-interest income	27,770		32,256		26,983		30,382		30,709
Non-interest expense
	Salaries and wages			42,606		44,271		41,213		38,937		40,420
	Employee benefits			9,198		10,693		8,722		9,158		10,842
	Net occupancy			6,262		6,489		6,119		7,234		6,413
	Equipment and software			8,712		8,083		7,702		8,011		8,352
	Marketing			1,788		2,377		2,749		2,421		2,601
	FDIC insurance			2,051		2,391		1,937		1,522		1,460
	Amortization of intangible assets			2,541		2,560		2,579		2,598		2,834
	Restructuring and merger-related expense			11		66		52		1,593		177
	Other operating expenses			17,286		15,011		15,946		16,074		15,204
			Total non-interest expense	90,455		91,941		87,019		87,548		88,303
Income before provision for income taxes				64,066		65,351		53,004		53,983		66,292
	Provision for income taxes			11,856		12,318		10,256		9,859		12,144
Net Income				52,210		53,033		42,748		44,124		54,148
Preferred stock dividends				2,531		2,531		2,531		2,531		2,531
Net income available to common shareholders				$         49,679		$         50,502		$         40,217		$         41,593		$         51,617
Taxable equivalent net interest income				$      131,164		$      125,808		$      113,479		$      108,866		$      111,453
Per common share data
Net income per common share - basic				$              0.84		$              0.85		$              0.67		$              0.68		$              0.82
Net income per common share - diluted				0.84		0.85		0.67		0.68		0.82
Net income per common share - diluted, excluding certain items (1)(2)				0.84		0.85		0.67		0.70		0.82
Dividends declared				0.35		0.34		0.34		0.34		0.33
Book value (period end)				38.55		37.96		38.92		39.64		40.91
Tangible book value (period end) (1)				19.43		18.84		19.89		20.87		22.61
Average common shares outstanding - basic				59,188,238		59,549,244		60,036,103		61,445,399		63,045,061
Average common shares outstanding - diluted				59,374,204		59,697,676		60,185,207		61,593,365		63,183,411
Period end common shares outstanding				59,198,963		59,304,505		59,698,788		60,613,414		62,307,245
Period end preferred shares outstanding				150,000		150,000		150,000		150,000		150,000
Full time equivalent employees				2,495		2,480		2,509		2,456		2,462
(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				2022		2022		2022		2022		2021
Non-performing assets:
	Troubled debt restructurings - accruing			$        3,230		$        4,583		$        3,579		$        3,731		$        3,746
	Non-accrual loans:
		Troubled debt restructurings		1,711		1,756		2,120		1,348		1,547
		Other non-accrual loans		36,474		26,428		29,594		32,024		34,195
		Total non-accrual loans		38,185		28,184		31,714		33,372		35,742
		Total non-performing loans		41,415		32,767		35,293		37,103		39,488
	Other real estate and repossessed assets			1,486		1,595		31		87		-
		Total non-performing assets		$      42,901		$      34,362		$      35,324		$      37,190		$      39,488
Past due loans (1):
	Loans past due 30-89 days			$      15,439		$      21,836		$      31,388		$      28,322		$      27,152
	Loans past due 90 days or more			5,443		24,311		9,560		6,142		7,804
		Total past due loans		$      20,882		$      46,147		$      40,948		$      34,464		$      34,956
Criticized and classified loans (2):
	Criticized loans			$    147,945		$    163,176		$    193,871		$    234,143		$    248,518
	Classified loans			102,555		86,861		126,257		123,837		116,013
		Total criticized and classified loans		$    250,500		$    250,037		$    320,128		$    357,980		$    364,531
Loans past due 30-89 days / total portfolio loans (3)				0.14	%	0.21	%	0.31	%	0.29	%	0.28	%
Loans past due 90 days or more / total portfolio loans				0.05		0.24		0.09		0.06		0.08
Non-performing loans / total portfolio loans				0.39		0.32		0.35		0.38		0.41
Non-performing assets / total portfolio loans, other
	real estate and repossessed assets			0.40		0.33		0.35		0.38		0.41
Non-performing assets / total assets				0.25		0.21		0.21		0.22		0.23
Criticized and classified loans / total portfolio loans				2.34		2.43		3.14		3.68		3.75
Allowance for credit losses
Allowance for credit losses - loans				$    117,790		$    114,584		$    117,403		$    117,865		$    121,622
Allowance for credit losses - loan commitments				8,368		8,938		7,718		8,050		7,775
Provision for credit losses				3,123		(535)		(812)		(3,438)		(13,559)
Net loan and deposit account overdraft charge-offs and recoveries				493		1,102		2		27		929
Annualized net loan charge-offs and recoveries / average loans				0.02	%	0.04	%	0.00	%	0.00	%	0.04	%
Allowance for credit losses - loans / total portfolio loans				1.10	%	1.11	%	1.15	%	1.21	%	1.25	%
Allowance for credit losses - loans / total portfolio loans excluding PPP loans				1.10	%	1.12	%	1.15	%	1.22	%	1.27	%
Allowance for credit losses - loans / non-performing loans				2.84	x	3.50	x	3.33	x	3.18	x	3.08	x
Allowance for credit losses - loans / non-performing loans and
	loans past due			1.89	x	1.45	x	1.54	x	1.65	x	1.63	x
				Dec. 31,		Sept. 30,		June 30,		Mar. 31,		Dec. 31,
				2022		2022		2022		2022		2021
Capital ratios
Tier I leverage capital				9.90	%	9.68	%	9.51	%	9.67	%	10.02	%
Tier I risk-based capital				12.33		12.51		12.49		13.25		14.05
Total risk-based capital				15.11		15.37		15.40		16.32		15.91
Common equity tier 1 capital ratio (CET 1)				11.20		11.35		11.31		12.01		12.77
Average shareholders' equity to average assets				14.45		14.75		14.79		15.63		15.99
Tangible equity to tangible assets (4)				8.19		8.16		8.50		8.83		9.84
Tangible common equity to tangible assets (4)				7.28		7.22		7.58		7.92		8.92
(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 $8.1 million of PPP loans as of December 31, 2022.
(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)				2022		2022		2022		2022		2021		2022	2021
Return on average assets, excluding after-tax restructuring and merger-related expenses:
	Net income available to common shareholders			$        49,679		$        50,502		$        40,217		$        41,593		$        51,617		$          181,988	$      232,135
	Plus: after-tax restructuring and merger-related expenses  (1)			9		52		41		1,258		140		1,361	5,306
	Net income available to common shareholders excluding after-tax restructuring and merger-related expenses			49,688		50,554		40,258		42,851		51,757		183,349	237,441
	Average total assets			$ 16,685,930		$ 16,871,655		$ 16,971,452		$ 16,992,598		$16,947,662		$    16,879,541	$ 16,928,377
Return on average assets, excluding after-tax restructuring and merger-related expenses (annualized)  (2)				1.18 %		1.19 %		0.95 %		1.02 %		1.21 %		1.09 %	1.40 %
Return on average equity, excluding after-tax restructuring and merger-related expenses:
	Net income available to common shareholders			$        49,679		$        50,502		$        40,217		$        41,593		$        51,617		$          181,988	$      232,135
	Plus: after-tax restructuring and merger-related expenses  (1)			9		52		41		1,258		140		1,361	5,306
	Net income available to common shareholders excluding after-tax restructuring and merger-related expenses			49,688		50,554		40,258		42,851		51,757		183,349	237,441
	Average total shareholders' equity			$   2,410,761		$   2,488,938		$   2,509,439		$   2,655,807		$   2,709,782		$       2,515,509	$   2,764,337
Return on average equity, excluding after-tax  restructuring and merger-related expenses (annualized)  (2)				8.18 %		8.06 %		6.43 %		6.54 %		7.58 %		7.29 %	8.59 %
Return on average tangible equity:
	Net income available to common shareholders			$        49,679		$        50,502		$        40,217		$        41,593		$        51,617		$          181,988	$      232,135
	Plus: amortization of intangibles (1)			2,007		2,022		2,037		2,052		2,239		8,120	9,051
	Net income available to common shareholders before amortization of intangibles			51,686		52,524		42,254		43,645		53,856		190,108	241,186
	Average total shareholders' equity			2,410,761		2,488,938		2,509,439		2,655,807		2,709,782		2,515,509	2,764,337
	Less: average goodwill and other intangibles, net of def. tax liability			(1,132,894)		(1,135,007)		(1,137,187)		(1,139,242)		(1,141,307)		(1,136,062)	(1,144,698)
	Average tangible equity			$   1,277,867		$   1,353,931		$   1,372,252		$   1,516,565		$   1,568,475		$       1,379,447	$   1,619,639
Return on average tangible equity (annualized)  (2)				16.05 %		15.39 %		12.35 %		11.67 %		13.62 %		13.78 %	14.89 %
	Average tangible common equity			$   1,133,383		$   1,209,447		$   1,227,768		$   1,372,081		$   1,423,991		$       1,234,963	$   1,475,155
Return on average tangible common equity (annualized)  (2)				18.09 %		17.23 %		13.80 %		12.90 %		15.00 %		15.39 %	16.35 %
Return on average tangible equity, excluding after-tax restructuring and merger-related expenses:
	Net income available to common shareholders			$        49,679		$        50,502		$        40,217		$        41,593		$        51,617		$          181,988	$      232,135
	Plus: after-tax restructuring and merger-related expenses  (1)			9		52		41		1,258		140		1,361	5,306
	Plus: amortization of intangibles  (1)			2,007		2,022		2,037		2,052		2,239		8,120	9,051
	Net income available to common shareholders before amortization of intangibles
	and excluding after-tax restructuring and merger-related expenses			51,695		52,576		42,295		44,903		53,996		191,469	246,492
	Average total shareholders' equity			2,410,761		2,488,938		2,509,439		2,655,807		2,709,782		2,515,509	2,764,337
	Less: average goodwill and other intangibles, net of def. tax liability			(1,132,894)		(1,135,007)		(1,137,187)		(1,139,242)		(1,141,307)		(1,136,062)	(1,144,698)
	Average tangible equity			$   1,277,867		$   1,353,931		$   1,372,252		$   1,516,565		$   1,568,475		$       1,379,447	$   1,619,639
Return on average tangible equity, excluding after-tax  restructuring and merger-related expenses (annualized)  (2)				16.05 %		15.41 %		12.36 %		12.01 %		13.66 %		13.88 %	15.22 %
	Average tangible common equity			$   1,133,383		$   1,209,447		$   1,227,768		$   1,372,081		$   1,423,991		$       1,234,963	$   1,475,155
Return on average tangible common equity, excluding after-tax restructuring and merger-related expenses (annualized)  (2)				18.10 %		17.25 %		13.82 %		13.27 %		15.04 %		15.50 %	16.71 %
Efficiency ratio:
	Non-interest expense			$        90,455		$        91,941		$        87,019		$        87,548		$        88,303		$          356,966	$      353,143
	Less: restructuring and merger-related expense			(11)		(66)		(52)		(1,593)		(177)		(1,723)	(6,717)
	Non-interest expense excluding restructuring and merger-related expense			90,444		91,875		86,967		85,955		88,126		355,243	346,426
	Net interest income on a fully taxable equivalent basis			131,164		125,808		113,479		108,866		111,453		479,315	462,229
	Non-interest income			27,770		32,256		26,983		30,382		30,709		117,391	132,785
	Net interest income on a fully taxable equivalent basis plus non-interest income			$      158,934		$      158,064		$      140,462		$      139,248		$      142,162		$          596,706	$      595,014
	Efficiency ratio			56.91 %		58.13 %		61.91 %		61.73 %		61.99 %		59.53 %	58.22 %
Net income available to common shareholders, excluding after-tax restructuring and merger-related expenses:
	Net income available to common shareholders			$        49,679		$        50,502		$        40,217		$        41,593		$        51,617		$          181,988	$      232,135
	Add: After-tax restructuring and merger-related expenses (1)			9		52		41		1,258		140		1,361	5,306
Net income available to common shareholders, excluding after-tax restructuring and merger-related expenses				$        49,688		$        50,554		$        40,258		$        42,851		$        51,757		$          183,349	$      237,441
Net income per common share - diluted, excluding after-tax restructuring and merger-related expenses:
	Net income per common share - diluted			$             0.84		$             0.85		$             0.67		$             0.68		$             0.82		$                 3.02	$             3.53
	Add: After-tax restructuring and merger-related expenses per common share - diluted (1)			-		-		-		0.02		-		0.02	0.09
Net income per common share - diluted, excluding after-tax restructuring and merger-related expenses				$             0.84		$             0.85		$             0.67		$             0.70		$             0.82		$                 3.04	$             3.62
				Period End
				Dec. 31,		Sept. 30,		June 30,		Mar. 31,		Dec. 31,
				2022		2022		2022		2022		2021
Tangible book value per share:
	Total shareholders' equity			$   2,426,662		$   2,395,652		$   2,467,951		$   2,547,316		$   2,693,166
	Less:  goodwill and other intangible assets, net of def. tax liability			(1,131,990)		(1,133,998)		(1,136,020)		(1,138,057)		(1,140,111)
	Less: preferred shareholder's equity			(144,484)		(144,484)		(144,484)		(144,484)		(144,484)
	Tangible common equity			1,150,188		1,117,170		1,187,447		1,264,775		1,408,571
	Common shares outstanding			59,198,963		59,304,505		59,698,788		60,613,414		62,307,245
Tangible book value per share				$           19.43		$           18.84		$           19.89		$           20.87		$          22.61
Tangible common equity to tangible assets:
	Total shareholders' equity			$   2,426,662		$   2,395,652		$   2,467,951		$   2,547,316		$   2,693,166
	Less:  goodwill and other intangible assets, net of def. tax liability			(1,131,990)		(1,133,998)		(1,136,020)		(1,138,057)		(1,140,111)
	Tangible equity			1,294,672		1,261,654		1,331,931		1,409,259		1,553,055
	Less: preferred shareholder's equity			(144,484)		(144,484)		(144,484)		(144,484)		(144,484)
	Tangible common equity			1,150,188		1,117,170		1,187,447		1,264,775		1,408,571
	Total assets			16,931,905		16,604,747		16,799,624		17,104,015		16,927,125
	Less:  goodwill and other intangible assets, net of def. tax liability			(1,131,990)		(1,133,998)		(1,136,020)		(1,138,057)		(1,140,111)
	Tangible assets			$ 15,799,915		$ 15,470,749		$ 15,663,604		$ 15,965,958		$15,787,014
Tangible equity to tangible assets				8.19 %		8.16 %		8.50 %		8.83 %		9.84 %
Tangible common equity to tangible assets				7.28 %		7.22 %		7.58 %		7.92 %		8.92 %
(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)				2022		2022		2022		2022		2021		2022	2021
Pre-tax, pre-provision income:
	Income before provision for income taxes			$        64,066		$        65,351		$        53,004		$        53,983		$        66,292		$      236,401	$      301,849
	Add: provision for credit losses			3,123		(535)		(812)		(3,438)		(13,559)		(1,663)	(64,274)
Pre-tax, pre-provision income				$        67,189		$        64,816		$        52,192		$        50,545		$        52,733		$      234,738	$      237,575
Pre-tax, pre-provision income, excluding restructuring and merger-related expenses:
	Income before provision for income taxes			$        64,066		$        65,351		$        53,004		$        53,983		$        66,292		$      236,401	$      301,849
	Add: provision for credit losses			3,123		(535)		(812)		(3,438)		(13,559)		(1,663)	(64,274)
	Add: restructuring and merger-related expenses			11		66		52		1,593		177		1,723	6,717
Pre-tax, pre-provision income, excluding restructuring and merger-related expenses				$        67,200		$        64,882		$        52,244		$        52,138		$        52,910		$      236,461	$      244,292
Return on average assets, excluding certain items (1):
	Income before provision for income taxes			$        64,066		$        65,351		$        53,004		$        53,983		$        66,292		$      236,401	$      301,849
	Add: provision for credit losses			3,123		(535)		(812)		(3,438)		(13,559)		(1,663)	(64,274)
	Add: restructuring and merger-related expenses			11		66		52		1,593		177		1,723	6,717
Pre-tax, pre-provision income, excluding restructuring and merger-related expenses				67,200		64,882		52,244		52,138		52,910		236,461	244,292
	Average total assets			$ 16,685,930		$ 16,871,655		$ 16,971,452		$ 16,992,598		$ 16,947,662		$ 16,879,541	$ 16,928,377
Return on average assets, excluding certain items (annualized)  (1) (2)				1.60 %		1.53 %		1.23 %		1.24 %		1.24 %		1.40 %	1.44 %
Return on average equity, excluding certain items (1):
	Income before provision for income taxes			$        64,066		$        65,351		$        53,004		$        53,983		$        66,292		$      236,401	$      301,849
	Add: provision for credit losses			3,123		(535)		(812)		(3,438)		(13,559)		(1,663)	(64,274)
	Add: restructuring and merger-related expenses			11		66		52		1,593		177		1,723	6,717
Pre-tax, pre-provision income, excluding restructuring and merger-related expenses				67,200		64,882		52,244		52,138		52,910		236,461	244,292
	Average total shareholders' equity			$   2,410,761		$   2,488,938		$   2,509,439		$   2,655,807		$   2,709,782		$   2,515,509	$   2,764,337
Return on average equity, excluding certain items (annualized) (1) (2)				11.06 %		10.34 %		8.35 %		7.96 %		7.75 %		9.40 %	8.84 %
Return on average tangible equity, excluding certain items (1):
	Income before provision for income taxes			$        64,066		$        65,351		$        53,004		$        53,983		$        66,292		$      236,401	$      301,849
	Add: provision for credit losses			3,123		(535)		(812)		(3,438)		(13,559)		(1,663)	(64,274)
	Add: amortization of intangibles			2,541		2,560		2,579		2,598		2,834		10,278	11,457
	Add: restructuring and merger-related expenses			11		66		52		1,593		177		1,723	6,717
Income before provision, restructuring and merger-related expenses and amortization of intangibles				69,741		67,442		54,823		54,736		55,744		246,739	255,749
	Average total shareholders' equity			2,410,761		2,488,938		2,509,439		2,655,807		2,709,782		2,515,509	2,764,337
	Less: average goodwill and other intangibles, net of def. tax liability			(1,132,894)		(1,135,007)		(1,137,187)		(1,139,242)		(1,141,307)		(1,136,062)	(1,144,698)
	Average tangible equity			$   1,277,867		$   1,353,931		$   1,372,252		$   1,516,565		$   1,568,475		$   1,379,447	$   1,619,639
Return on average tangible equity, excluding certain items (annualized) (1) (2)				21.65 %		19.76 %		16.02 %		14.64 %		14.10 %		17.89 %	15.79 %
	Average tangible common equity			$   1,133,383		$   1,209,447		$   1,227,768		$   1,372,081		$   1,423,991		$   1,234,963	$   1,475,155
Return on average tangible common equity, excluding certain items (annualized) (1) (2)				24.41 %		22.12 %		17.91 %		16.18 %		15.53 %		19.98 %	17.34 %
(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 were WesBanco's Q4 2022 earnings per share?

WesBanco reported earnings per share of $0.84 for Q4 2022.

How much did WesBanco earn for the full year of 2022?

WesBanco's net income for 2022 was $182.0 million, or $3.02 per diluted share.

What was the loan growth percentage for WesBanco in 2022?

WesBanco experienced loan growth of 11.7% year-over-year.

What is WesBanco's net interest margin for Q4 2022?

The net interest margin for WesBanco was 3.49% in Q4 2022.

How did non-interest income change for WesBanco in 2022?

WesBanco's non-interest income decreased by 11.6% in 2022.