WesBanco Announces Second Quarter 2021 Financial Results

Rhea-AI Summary

WesBanco reported strong financial results for Q2 2021, with net income of $68.1 million and diluted EPS of $1.01, a significant increase from $4.5 million and $0.07 per share in Q2 2020. For the six months, net income reached $138.6 million or $2.06 per share, up from $27.9 million or $0.41. Deposit growth was 14.0% year-over-year, while trust assets rose 22.2%. However, total loans decreased 6.5% due to the forgiveness of SBA PPP loans.

Positive

• Net income for Q2 2021 was $68.1 million, up from $4.5 million in Q2 2020.
• Diluted EPS for Q2 2021 was $1.01, a significant increase from $0.07 per share in the prior year.
• Total deposits increased by 9.3% year-over-year to $13.3 billion.
• Trust assets grew by 22.2% year-over-year to $5.5 billion.
• Year-to-date efficiency ratio improved to 55.33%.

Negative

• Total loans decreased by 6.5% year-over-year, mainly due to the forgiveness of $662 million in SBA PPP loans.
• Net interest margin decreased to 3.12%, down 20 basis points from Q2 2020.

WHEELING, W.Va., July 27, 2021 /PRNewswire/ -- WesBanco, Inc. ("WesBanco") (Nasdaq: WSBC), a diversified, multi-state bank holding company, today announced net income and related earnings per share for the three and six months ended June 30, 2021.  Net income available to common shareholders for the period was $68.1 million, with diluted earnings per share of $1.01, compared to $4.5 million and $0.07 per diluted share, respectively, for the second quarter of 2020.  For the six months ended June 30, 2021, net income was $138.6 million, or $2.06 per diluted share, compared to $27.9 million, or $0.41 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 June 30, 2021, was $69.0 million, or $1.03 per diluted share, as compared to $4.9 million and $0.07 per diluted share, respectively, in the prior year quarter (non-GAAP measures).  On the same basis, net income for the six months ended June 30, 2021 was $140.3 million, or $2.09 per diluted share, as compared to $32.3 million, or $0.48 per diluted share, in the prior year period (non-GAAP measures).

			For the Three Months Ended June 30,									For the Six Months Ended June 30,
			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)			$      69,022		$       1.03		$        4,858		$       0.07			$    140,279		$       2.09		$      32,334		$       0.48
Less: After-tax restructuring and merger-related expenses			(965)		(0.02)		(370)		-			(1,638)		(0.03)		(4,450)		(0.07)
Net income available to common shareholders (GAAP)			$      68,057		$       1.01		$        4,488		$       0.07			$    138,641		$       2.06		$      27,884		$       0.41

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

WesBanco believes that pre-tax, pre-provision income ("PTPP") (non-GAAP measure) provides a more comparable year-over-year measure as it removes the provision for credit losses to improve comparability from period-to-period.  For the three months ended June 30, 2021, PTPP, excluding restructuring and merger-related expenses, increased 3.8% year-over-year to $69.4 million, as compared to $66.8 million for the prior period.  In addition, on the same basis, the PTPP return on average assets was 1.63% for the three months ended June 30, 2021, as compared to 1.61% in the prior year period.  For the six months ended June 30, 2021, PTPP income, excluding restructuring and merger-related expenses, increased 3.7% year-over-year to $133.6 million, as compared to $128.8 million for the prior period.

Financial and operational highlights during the quarter ended June 30, 2021:

• Deposit growth, excluding certificates of deposit ("CDs"), was 14.0% year-over-year, driven by growth in demand deposits
• Trust assets under management increased 22.2% year-over-year to a record $5.5 billion, which was driven by both market appreciation and organic growth
• Continued expense management demonstrated by a year-to-date efficiency ratio of 55.33% (non-GAAP measure)
• Improving macro-economic factors 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, 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)
• During the quarter, we purchased approximately 1.5 million shares of our common stock on the open market under existing share repurchase authorizations
• WesBanco Bank was named, for the third year in a row, one of the world's best banks in an independent ranking based solely on customer satisfaction and feedback
• We anticipate our core banking software system conversion to be completed during the third quarter, which will provide enhanced products and services for our customers, as well as improved operational efficiencies

"We are pleased with WesBanco's performance during the second quarter of 2021 as we continue to deliver pre-tax, pre-provision earnings growth," said Todd F. Clossin, President and Chief Executive Officer of WesBanco.  "Our financial performance this quarter was again driven by strong fee income growth and disciplined expense management.  In addition, we remain focused on ensuring a strong organization for our shareholders and will continue to appropriately return capital to them."

Mr. Clossin added, "The successful execution of our growth and diversification plans has enabled WesBanco to transform into an emerging regional financial institution with the majority of our organization in higher growth markets.  This diversification, combined with our experienced teams, make us well-positioned to drive loan growth once the excess liquidity throughout our economies is absorbed.  In fact, we have continued to make strategic hires across our organization and markets in order to strengthen our teams and enhance our ability to leverage growth opportunities once they fully return."

Balance Sheet
Portfolio loans of $10.4 billion as of June 30, 2021 decreased 6.5% when compared to the prior year period, due primarily to forgiveness of approximately $662 million of SBA Payroll Protection Program ("SBA PPP") loans and lower residential real estate and consumer loans.  Further, when excluding SBA PPP loans, total loans decreased 4.1% year-over-year and 0.7% sequentially.  During the second quarter, approximately 2,320 customers applied for and received forgiveness of their SBA PPP loans totaling $327 million; while our lenders assisted more than 780 businesses with Round 2 SBA PPP loans totaling approximately $27 million, through its conclusion at the end of May.

Total deposits increased 9.3% year-over-year to $13.3 billion due primarily to stimulus funds previously received by our customers and increased personal savings, which more than offset a $324.5 million reduction in CDs.  Deposits, excluding CDs, increased 14.0% year-over-year, driven by a 14.4% increase in total demand deposits, which represent approximately 57% of total deposits.

Credit Quality
As of June 30, 2021, total loans past due, non-performing loans, and non-performing assets as percentages of the portfolio and total assets have remained relatively low and consistent throughout the last five quarters.  In addition, we realized annualized net loan recoveries to average loans of three basis points.  Reflecting improved macroeconomic factors and qualitative adjustments in the CECL calculation, the allowance for credit losses specific to total portfolio loans at June 30, 2021 was $140.7 million, or 1.36% of total loans; or, when excluding SBA PPP loans, 1.43% of total portfolio loans.  The improvements in these macroeconomic factors resulted in a negative provision for credit losses of $21.0 million for the second quarter of 2021.

Net Interest Margin and Income
The net interest margin of 3.12% for the second quarter of 2021 decreased 15 basis points sequentially and 20 basis points from the second quarter of 2020, primarily due to the lower interest rate environment, and a mix shift of higher securities as a percentage of total assets.  As a result of higher cash balances from additional stimulus funds received by our customers and their higher personal savings creating extra liquidity, investment securities increased by $1.0 billion year-over-year and represent approximately 23% of total assets, as of June 30, 2021.  Reflecting the significantly lower interest rate environment, we aggressively reduced our deposit rates throughout the past year, which helped to lower deposit funding costs 13 basis points year-over-year to 17 basis points for the second quarter of 2021, or 12 basis points when including non-interest bearing deposits.  The total cost of deposits was down 2 basis points sequentially.  Furthermore, we continued to lower the cost of FHLB borrowings, down 17 basis points quarter-over-quarter, as second quarter average borrowings declined $0.1 billion, or 20.1%, from the first quarter to $0.4 billion, which have a remaining average life of less than one year.  Accretion from acquisitions benefited the second quarter net interest margin by 12 basis points, as compared to 19 basis points in the prior year period and 13 basis points during the first quarter of 2021.  Lastly, the forgiveness of existing and funding of new SBA PPP loans benefited the second quarter of 2021 net interest margin by a net 5 basis points, and should positively impact the net interest margin as the loans are forgiven during the next few quarters.

Net interest income decreased $3.2 million, or 2.7%, during the second quarter of 2021, as compared to the same quarter of 2021, 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 six months ended June 30, 2021, net interest income decreased $6.8 million, or 2.9%, due to the reasons discussed for the three-month period comparison.

Non-Interest Income
For the second quarter of 2021, non-interest income of $36.1 million increased $3.3 million, or 9.9%, from the second quarter of 2020, driven primarily by a net gain on other real estate owned and other assets, electronic banking fees, and trust fees, which were partially offset by lower other income and net securities gains.  The net gain on other real estate owned and other assets of $4.0 million was due to a gain earned 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.  Electronic banking fees increased $1.0 million, or 24.4%, due primarily to increased point-of-sale transactions and ATM volumes.  Trust fees increased $0.9 million, or 15.3%, due to market value appreciation and organic growth.  Loan swap-related income, which is recorded in other income, of $1.0 million was offset during the quarter by a negative $1.0 million of fair market value adjustments, as compared, respectively, to $3.5 million and a negative $0.5 million last year.

Primarily reflecting the items discussed above, non-interest income, for the six months ended June 30, 2021, increased $8.5 million, or 13.9%.  In addition, reflecting the low interest rate environment and organic growth, mortgage banking fees increased $3.3 million, or 37.3%, compared to the prior year period, net of fair value adjustments, while service charges on deposits were lower due to higher consumer deposits associated with the three rounds of stimulus to-date and lower general consumer spending, resulting in fewer eligible account fees. 

Non-Interest Expense
Total operating expenses continued to be well-controlled through company-wide efforts to effectively manage discretionary costs and full-time equivalent employee counts, as demonstrated by a year-to-date efficiency ratio of 55.33%.  Excluding restructuring and merger-related expenses, non-interest expense for the three months ended June 30, 2021 decreased $2.4 million, or 2.9%, to $82.6 million compared to the prior year period, primarily due to lower FDIC insurance expense, as well as continuing cost control measures over certain discretionary expenses.  FDIC insurance expense decreased $2.2 million, or 92.4%, due to certain prior period reporting adjustments resulting in a $1.0 million refund and improved risk factors.  Equipment and software expense for the second quarter of 2021 increased $1.6 million, or 27.2%, year-over-year due to increased asset size and the SBA PPP loan program.  Other operating expenses decreased $1.1 million, or 6.1%, reflecting a $0.8 million state franchise tax refund.

On a similar basis, non-interest expense during the first half of 2021 decreased $3.1 million, or 1.8%, compared to the prior year period, due primarily to lower salaries and wages from financial center closures during the past year, lower FDIC insurance, and discretionary cost control which more than offset higher equipment and software costs, higher marketing expense from product advertising and brand awareness campaigns that were delayed from 2020 due to the COVID-19 pandemic, and mid-2020 annual salary increases.

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 June 30, 2021, Tier I leverage was 10.42%, Tier I risk-based capital ratio was 15.15%, common equity Tier 1 capital ratio ("CET 1") was 13.83%, and total risk-based capital was 17.68%.

During the second quarter of 2021, WesBanco repurchased 1,478,882 shares of its outstanding common stock on the open market at a total cost of $55.6 million.  As of June 30, 2021, approximately 1.9 million shares remained for repurchase under existing share repurchase authorizations.

Conference Call and Webcast
WesBanco will host a conference call to discuss the Company's financial results for the second quarter of 2021 at 10:00 a.m. ET on Wednesday, July 28, 2021.  Interested parties can access the live webcast of the conference call through the Investor Relations section of the Company's website, www.wesbanco.com.  Participants can also listen to the conference call by dialing 888-347-6607, 855-669-9657 for Canadian callers, or 412-902-4290 for international callers, and asking to be joined into the WesBanco call.

A replay of the conference call will be available by dialing 877-344-7529, 855-669-9658 for Canadian callers, or 412-317-0088 for international callers, and providing the access code of 10150982.  The replay will begin at approximately 12:00 p.m. ET on July 28, and end at 12 a.m. ET on August 11.  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 quarter ended March 31, 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 $5.5 billion of assets under management (as of June 30, 2021).  WesBanco's banking subsidiary, WesBanco Bank, Inc., operates 206 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 Six Months Ended
Statement of Income				June 30,						June 30,
Interest and dividend income				2021		2020		% Change		2021		2020		% Change
	Loans, including fees			$    105,968		$     115,068		(7.9)		$    215,327		$     234,571		(8.2)
	Interest and dividends on securities:
		Taxable		12,900		14,047		(8.2)		24,027		31,034		(22.6)
		Tax-exempt		3,952		4,302		(8.1)		7,862		8,758		(10.2)
			Total interest and dividends on securities	16,852		18,349		(8.2)		31,889		39,792		(19.9)
	Other interest income			507		1,277		(60.3)		1,166		2,779		(58.0)
Total interest and dividend income				123,327		134,694		(8.4)		248,382		277,142		(10.4)
Interest expense
	Interest bearing demand deposits			1,009		1,350		(25.3)		2,052		4,745		(56.8)
	Money market deposits			551		879		(37.3)		1,130		3,231		(65.0)
	Savings deposits			261		297		(12.1)		525		1,220		(57.0)
	Certificates of deposit			2,026		3,514		(42.3)		4,396		7,568		(41.9)
			Total interest expense on deposits	3,847		6,040		(36.3)		8,103		16,764		(51.7)
	Federal Home Loan Bank borrowings			1,781		7,293		(75.6)		4,195		15,525		(73.0)
	Other short-term borrowings			40		279		(85.7)		159		1,149		(86.2)
	Subordinated debt and junior subordinated debt			1,804		2,069		(12.8)		3,593		4,530		(20.7)
			Total interest expense	7,472		15,681		(52.3)		16,050		37,968		(57.7)
Net interest income				115,855		119,013		(2.7)		232,332		239,174		(2.9)
	Provision for credit losses			(21,025)		61,841		(134.0)		(48,984)		91,661		(153.4)
Net interest income after provision for credit losses				136,880		57,172		139.4		281,316		147,513		90.7
Non-interest income
	Trust fees			7,148		6,202		15.3		14,780		13,154		12.4
	Service charges on deposits			4,876		4,323		12.8		9,770		10,940		(10.7)
	Electronic banking fees			5,060		4,066		24.4		9,426		8,320		13.3
	Net securities brokerage revenue			1,829		1,384		32.2		3,352		3,063		9.4
	Bank-owned life insurance			1,707		1,752		(2.6)		3,416		3,521		(3.0)
	Mortgage banking income			7,830		7,531		4.0		12,094		8,807		37.3
	Net securities gains			477		1,299		(63.3)		756		2,790		(72.9)
	Net gain/(loss) on other real estate owned and other assets			4,014		(66)		NM		4,189		103		NM
	Other income			3,171		6,369		(50.2)		11,537		10,171		13.4
			Total non-interest income	36,112		32,860		9.9		69,320		60,869		13.9
Non-interest expense
	Salaries and wages			37,435		36,773		1.8		74,324		75,683		(1.8)
	Employee benefits			9,268		10,138		(8.6)		19,534		20,511		(4.8)
	Net occupancy			6,427		6,634		(3.1)		13,605		13,717		(0.8)
	Equipment and software			7,281		5,722		27.2		14,045		11,761		19.4
	Marketing			1,802		1,567		15.0		4,185		2,705		54.7
	FDIC insurance			181		2,395		(92.4)		1,462		4,508		(67.6)
	Amortization of intangible assets			2,873		3,365		(14.6)		5,769		6,739		(14.4)
	Restructuring and merger-related expense			1,222		468		161.1		2,074		5,633		(63.2)
	Other operating expenses			17,323		18,440		(6.1)		35,141		35,578		(1.2)
			Total non-interest expense	83,812		85,502		(2.0)		170,139		176,835		(3.8)
Income before provision for income taxes				89,180		4,530		NM		180,497		31,547		472.2
	Provision for income taxes			18,592		42		NM		36,793		3,663		904.4
Net Income				70,588		4,488		NM		143,704		27,884		415.4
Preferred stock dividends				2,531		-		100.0		5,063		-		100.0
Net income available to common shareholders				$       68,057		$         4,488		NM		$    138,641		$       27,884		397.2
Taxable equivalent net interest income				$    116,906		$  120,156		(2.7)		$    234,423		$  241,502		(2.9)
Per common share data
Net income per common share - basic				$           1.02		$           0.07		NM		$           2.07		$           0.41		404.9
Net income per common share - diluted				1.01		0.07		NM		2.06		0.41		402.4
Net income per common share - diluted, excluding certain items (1)(2)				1.03		0.07		NM		2.09		0.48		335.4
Dividends declared				0.33		0.32		3.1		0.66		0.64		3.1
Book value (period end)				39.96		38.23		4.5		39.96		38.23		4.5
Tangible book value (period end) (1)				22.61		21.10		7.2		22.61		21.10		7.2
Average common shares outstanding - basic				66,894,398		67,104,628		(0.3)		67,078,036		67,295,589		(0.3)
Average common shares outstanding - diluted				67,066,592		67,181,755		(0.2)		67,239,548		67,410,460		(0.3)
Period end common shares outstanding				65,970,149		67,211,192		(1.8)		65,970,149		67,211,192		(1.8)
Period end preferred shares outstanding				150,000		-		100.0		150,000		-		100.0
(1) See non-GAAP financial measures for additional information relating to the calculation of this item.
(2) Certain items excluded from the calculation consist of after-tax restructuring and merger-related expenses.
NM - Not Meaningful

 

WESBANCO, INC.
Consolidated Selected Financial Highlights												Page 6
(unaudited, dollars in thousands)
Selected ratios
		For the Six Months Ended
		June 30,
		2021		2020		% Change
Return on average assets		1.66	%	0.35	%	374.29	%
Return on average assets, excluding
after-tax restructuring and merger-related expenses (1)		1.68		0.40		320.00
Return on average equity		10.04		2.16		364.81
Return on average equity, excluding
after-tax restructuring and merger-related expenses (1)		10.15		2.50		306.00
Return on average tangible equity (1)		17.62		4.56		286.40
Return on average tangible equity, excluding
after-tax restructuring and merger-related expenses (1)		17.82		5.17		244.68
Return on average tangible common equity (1)		19.32		4.56		323.68
Return on average tangible common equity, excluding
after-tax restructuring and merger-related expenses (1)		19.54		5.17		277.95
Yield on earning assets (2)		3.41		3.96		(13.89)
Cost of interest bearing liabilities		0.34		0.77		(55.84)
Net interest spread (2)		3.07		3.19		(3.76)
Net interest margin (2)		3.19		3.42		(6.73)
Efficiency (1) (2)		55.33		56.62		(2.28)
Average loans to average deposits		82.47		93.18		(11.49)
Annualized net loan charge-offs/average loans		(0.00)		0.13		(100.00)
Effective income tax rate		20.38		11.61		75.54
		For the Three Months Ended
		June 30,		Mar. 31,		Dec. 31,		Sept. 30,		June 30,
		2021		2021		2020		2020		2020
Return on average assets		1.60	%	1.72	%	1.21	%	0.98	%	0.11	%
Return on average assets, excluding
after-tax restructuring and merger-related expenses (1)		1.62		1.74		1.22		1.05		0.12
Return on average equity		9.74		10.33		7.28		6.17		0.69
Return on average equity, excluding
after-tax restructuring and merger-related expenses (1)		9.88		10.43		7.33		6.60		0.75
Return on average tangible equity (1)		17.04		18.22		13.18		11.56		1.98
Return on average tangible equity, excluding
after-tax restructuring and merger-related expenses (1)		17.27		18.39		13.28		12.31		2.08
Return on average tangible common equity (1)		18.67		20.00		14.49		12.21		1.98
Return on average tangible common equity, excluding										.
after-tax restructuring and merger-related expenses (1)		18.92		20.18		14.60		13.00		2.08
Yield on earning assets (2)		3.32		3.51		3.61		3.66		3.75
Cost of interest bearing liabilities		0.31		0.37		0.45		0.53		0.63
Net interest spread (2)		3.01		3.14		3.16		3.13		3.12
Net interest margin (2)		3.12		3.27		3.31		3.31		3.32
Efficiency (1) (2)		53.97		56.71		57.06		55.23		55.57
Average loans to average deposits		79.82		85.27		89.64		90.88		91.87
Annualized net loan charge-offs and recoveries /average loans		(0.03)		0.02		0.02		(0.00)		0.07
Effective income tax rate		20.85		19.93		18.13		15.66		0.93
Trust assets, market value at period end		$ 5,480,995		$ 5,244,370		$ 5,025,565		$      4,649,054		$      4,487,042
(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				June 30,					December 31,	December 31, 2020
Assets				2021		2020		% Change	2020	to June 30, 2021
Cash and due from banks				$       208,992		$      219,022		(4.6)	$          184,361	13.4
Due from banks - interest bearing				637,312		671,312		(5.1)	721,086	(11.6)
Securities:
	Equity securities, at fair value			13,494		12,277		9.9	13,047	3.4
	Available-for-sale debt securities, at fair value			2,964,264		2,073,949		42.9	1,978,136	49.9
	Held-to-maturity debt securities (fair values of $934,487; $802,666
	and $768,183, respectively)			902,172		766,416		17.7	731,212	23.4
		Allowance for credit losses, held-to-maturity debt securities		(227)		(817)		72.2	(326)	30.4
	Net held-to-maturity debt securities			901,945		765,599		17.8	730,886	23.4
		Total securities		3,879,703		2,851,825		36.0	2,722,069	42.5
Loans held for sale				41,461		53,324		(22.2)	168,378	(75.4)
Portfolio loans:
	Commercial real estate			5,705,246		5,694,457		0.2	5,705,392	(0.0)
	Commercial and industrial			2,119,186		2,496,096		(15.1)	2,407,438	(12.0)
	Residential real estate			1,625,632		1,893,544		(14.1)	1,720,961	(5.5)
	Home equity			631,059		646,323		(2.4)	646,387	(2.4)
	Consumer			276,069		343,723		(19.7)	309,055	(10.7)
Total portfolio loans, net of unearned income				10,357,192		11,074,143		(6.5)	10,789,233	(4.0)
Allowance for credit losses - loans  (1)				(140,730)		(168,475)		16.5	(185,827)	24.3
		Net portfolio loans		10,216,462		10,905,668		(6.3)	10,603,406	(3.6)
Premises and equipment, net				235,227		255,306		(7.9)	249,421	(5.7)
Accrued interest receivable				64,020		59,151		8.2	66,790	(4.1)
Goodwill and other intangible assets, net				1,157,322		1,166,853		(0.8)	1,163,091	(0.5)
Bank-owned life insurance				309,454		303,022		2.1	306,038	1.1
Other assets				216,914		269,912		(19.6)	240,970	(10.0)
Total Assets				$ 16,966,867		$ 16,755,395		1.3	$     16,425,610	3.3
Liabilities
Deposits:
	Non-interest bearing demand			$   4,409,221		$   4,067,903		8.4	$       4,070,835	8.3
	Interest bearing demand			3,214,484		2,596,132		23.8	2,839,536	13.2
	Money market			1,771,686		1,610,248		10.0	1,685,927	5.1
	Savings deposits			2,438,328		2,103,154		15.9	2,214,565	10.1
	Certificates of deposit			1,484,536		1,809,016		(17.9)	1,618,510	(8.3)
		Total deposits		13,318,255		12,186,453		9.3	12,429,373	7.2
Federal Home Loan Bank borrowings				313,960		1,129,631		(72.2)	549,003	(42.8)
Other short-term borrowings				135,267		390,777		(65.4)	241,950	(44.1)
Subordinated debt and junior subordinated debt				192,571		192,080		0.3	192,291	0.1
		Total borrowings		641,798		1,712,488		(62.5)	983,244	(34.7)
Accrued interest payable				3,342		6,040		(44.7)	4,314	(22.5)
Other liabilities				222,636		280,893		(20.7)	251,942	(11.6)
Total Liabilities				14,186,031		14,185,874		0.0	13,668,873	3.8
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 at June 30, 2021 and
	December 31, 2020 and 0 shares issued and outstanding at June 30, 2020, respectively.			144,484		-		100.0	144,484	-
Common stock, $2.0833 par value; 100,000,000 shares authorized in
	2021 and 2020, respectively; 68,081,306, 68,078,116 and 68,081,306 shares
	issued, respectively; 65,970,149, 67,211,192 and 67,254,706 shares			141,834		141,827		0.0	141,834	-
	outstanding, respectively
Capital surplus				1,632,460		1,633,079		(0.0)	1,634,815	(0.1)
Retained earnings				925,977		782,990		18.3	831,688	11.3
Treasury stock ( 2,111,157, 866,924 and 826,600 shares - at cost, respectively)				(74,996)		(27,518)		(172.5)	(25,949)	(189.0)
Accumulated other comprehensive income				12,586		40,516		(68.9)	31,359	(59.9)
Deferred benefits for directors				(1,509)		(1,373)		(9.9)	(1,494)	(1.0)
Total Shareholders' Equity				2,780,836		2,569,521		8.2	2,756,737	0.9
Total Liabilities and Shareholders' Equity				$ 16,966,867		$ 16,755,395		1.3	$     16,425,610	3.3

 

WESBANCO, INC.
Consolidated Selected Financial Highlights							Page 8
(unaudited, dollars in thousands, except shares)
Balance sheet				June 30,		March 31,
Assets				2021		2021	% Change
Cash and due from banks				$       208,992		$      209,040	(0.0)
Due from banks - interest bearing				637,312		550,008	15.9
Securities:
	Equity securities, at fair value			13,494		13,123	2.8
	Available-for-sale, at fair value			2,964,264		2,775,212	6.8
	Held-to-maturity (fair values of $934,487 and 839,872, respectively)			902,172		813,740	10.9
		Allowance for credit losses, held-to-maturity debt securities		(227)		(290)	21.7
	Net held-to-maturity debt securities			901,945		813,450	21.7
		Total securities		3,879,703		3,601,785	10.9
Loans held for sale				41,461		153,520	7.7
Portfolio Loans:
	Commercial real estate			5,705,246		5,712,742	(0.1)
	Commercial and industrial			2,119,186		2,422,735	(12.5)
	Residential real estate			1,625,632		1,644,422	(1.1)
	Home equity			631,059		634,018	(0.5)
	Consumer			276,069		289,395	(4.6)
Total portfolio loans, net of unearned income				10,357,192		10,703,312	(3.2)
Allowance for credit losses - loans				(140,730)		(160,040)	12.1
	Net portfolio loans			10,216,462		10,543,272	(3.1)
Premises and equipment, net				235,227		239,863	(1.9)
Accrued interest receivable				64,020		68,896	(7.1)
Goodwill and other intangible assets, net				1,157,322		1,160,195	(0.2)
Bank-owned life insurance				309,454		307,747	0.6
Other assets				216,914		223,462	(2.9)
Total Assets				$ 16,966,867		$ 17,057,788	(0.5)
Liabilities
Deposits:
	Non-interest bearing demand			4,409,221		$   4,460,049	(1.1)
	Interest bearing demand			3,214,484		3,126,186	2.8
	Money market			1,771,686		1,771,703	(0.0)
	Savings deposits			2,438,328		2,373,987	2.7
	Certificates of deposit			1,484,536		1,555,074	(4.5)
		Total deposits		13,318,255		13,286,999	0.2
Federal Home Loan Bank borrowings				313,960		433,984	(27.7)
Other short-term borrowings				135,267		137,218	(1.4)
Subordinated debt and junior subordinated debt				192,571		192,430	0.1
		Total borrowings		641,798		763,632	(16.0)
Accrued interest payable				3,342		3,224	3.7
Other liabilities				222,636		218,411	1.9
Total liabilities				14,186,031		14,272,266	(0.6)
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 at June 30, 2021
	and March 31, 2021, respectively			144,484		144,484	-
Common stock, $2.0833 par value; 100,000,000 shares authorized;
	68,081,306 and 68,081,306 shares issued, respectively;
	65,970,149 and 67,282,134 shares outstanding, respectively			141,834		141,834	-
Capital surplus				1,632,460		1,636,103	(0.2)
Retained earnings				925,977		879,786	5.3
Treasury stock (2,111,157 and 799,172 shares - at cost)				(74,996)		(24,989)	(200.1)
Accumulated other comprehensive income				12,586		9,803	28.4
Deferred benefits for directors				(1,509)		(1,499)	(0.7)
Total Shareholders' Equity				2,780,836		2,785,522	(0.2)
Total Liabilities and Shareholders' Equity				$ 16,966,867		$ 17,057,788	(0.5)

 

WESBANCO, INC.
Consolidated Selected Financial Highlights																Page 9
(unaudited, dollars in thousands)
Average balance sheet and
net interest margin analysis		For the Three Months Ended June 30,								For the Six Months Ended June 30,
		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		$       696,967	0.09	%		$      637,979	0.17	%		$       736,387	0.09	%		$      385,755	0.35	%
Loans, net of unearned income (1)		10,641,970	3.99			10,955,694	4.22			10,765,483	4.03			10,665,441	4.42
Securities: (2)
Taxable		3,042,009	1.70			2,288,409	2.47			2,676,198	1.81			2,432,539	2.57
Tax-exempt (3)		599,980	3.34			622,637	3.52			590,144	3.40			634,612	3.51
Total securities		3,641,989	1.97			2,911,046	2.69			3,266,342	2.10			3,067,151	2.76
Other earning assets		28,702	4.95			71,493	5.68			30,958	5.45			70,537	6.02
Total earning assets (3)		15,009,628	3.32	%		14,576,212	3.75	%		14,799,170	3.41	%		14,188,884	3.96	%
Other assets		2,032,519				2,138,999				2,041,154				2,061,191
Total Assets		$ 17,042,147				$ 16,715,211				$ 16,840,324				$ 16,250,075
Liabilities and Shareholders' Equity
Interest bearing demand deposits		$   3,147,915	0.13	%		$   2,558,768	0.21	%		$   3,059,830	0.14	%		$   2,450,605	0.39	%
Money market accounts		1,774,556	0.12			1,603,395	0.22			1,750,194	0.13			1,573,579	0.41
Savings deposits		2,414,824	0.04			2,060,392	0.06			2,353,083	0.04			2,006,940	0.12
Certificates of deposit		1,519,590	0.53			1,846,929	0.77			1,551,692	0.57			1,918,189	0.79
Total interest bearing deposits		8,856,885	0.17			8,069,484	0.30			8,714,799	0.19			7,949,313	0.42
Federal Home Loan Bank borrowings		390,020	1.83			1,381,093	2.12			438,932	1.93			1,426,134	2.19
Other borrowings		130,171	0.12			365,793	0.31			160,753	0.20			350,917	0.66
Subordinated debt and junior subordinated debt		192,483	3.76			192,021	4.33			192,412	3.77			195,257	4.67
Total interest bearing liabilities (4)		9,569,559	0.31	%		10,008,391	0.63	%		9,506,896	0.34	%		9,921,621	0.77	%
Non-interest bearing demand deposits		4,474,784				3,856,291				4,338,546				3,496,784
Other liabilities		196,350				247,591				208,861				233,166
Shareholders' equity		2,801,455				2,602,938				2,786,021				2,598,504
Total Liabilities and Shareholders' Equity		$ 17,042,147				$ 16,715,211				$ 16,840,324				$ 16,250,075
Taxable equivalent net interest spread			3.01	%			3.12	%			3.07	%			3.19	%
Taxable equivalent net interest margin			3.12	%			3.32	%			3.19	%			3.42	%
(1) Gross of allowance for loan losses and net of unearned income,  Includes non-accrual and loans held for sale.  Loan fees included in interest income on loans were $6.5 million and $2.6 million for the three months ended June 30, 2021 and 2020, respectively, and were $14.7 million and $3.3 million for the six months ended June 30, 2021 and 2020, respectively.  As part of loan fees, PPP loan fees were $7.8 million and $2.1 million for the three months ended June 30, 2021 and 2020, respectively and $17.7 million and $2.1 million for the six months ended June 30, 2021 and 2020, respectively.  Additionally, loan accretion included in interest income on loans acquired from prior acquisitions was $3.8 million and $4.1 million for the three months ended June 30, 2021 and 2020, respectively. and $7.3 million and $8.2 million for the six months ended June 30, 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 $0.8 million and $2.6 million for the three months ended June 30, 2021 and 2020, respectively, and $1.9 million and $6.0 million for the six months ended June 30, 2021 and 2020, respectively.

 

WESBANCO, INC.
Consolidated Selected Financial Highlights												Page 10
(unaudited, dollars in thousands, except shares and per share amounts)
				Quarter Ended
Statement of Income				June 30,		Mar. 31,		Dec. 31,		Sept.  30,		June 30,
Interest and dividend income				2021		2021		2020		2020		2020
	Loans, including fees			$   105,968		$   109,358		$     114,582		$     116,524		$     115,068
	Interest and dividends on securities:
		Taxable		12,900		11,127		10,892		11,669		14,047
		Tax-exempt		3,952		3,910		4,059		4,182		4,302
			Total interest and dividends on securities	16,852		15,037		14,951		15,851		18,349
	Other interest income			507		659		945		1,282		1,277
Total interest and dividend income				123,327		125,054		130,478		133,657		134,694
Interest expense
	Interest bearing demand deposits			1,009		1,043		1,099		1,225		1,350
	Money market deposits			551		578		678		707		879
	Savings deposits			261		264		280		303		297
	Certificates of deposit			2,026		2,370		2,797		3,197		3,514
			Total interest expense on deposits	3,847		4,255		4,854		5,432		6,040
	Federal Home Loan Bank borrowings			1,781		2,414		3,719		5,457		7,293
	Other short-term borrowings			40		118		275		304		279
	Subordinated debt and junior subordinated debt			1,804		1,789		1,918		1,871		2,069
			Total interest expense	7,472		8,576		10,766		13,064		15,681
Net interest income				115,855		116,478		119,712		120,593		119,013
	Provision for credit losses			(21,025)		(27,958)		(209)		16,288		61,841
Net interest income after provision for credit losses				136,880		144,436		119,921		104,305		57,172
Non-interest income
	Trust fees			7,148		7,631		6,754		6,426		6,202
	Service charges on deposits			4,876		4,894		5,671		5,332		4,323
	Electronic banking fees			5,060		4,365		4,424		4,780		4,066
	Net securities brokerage revenue			1,829		1,524		1,402		1,725		1,384
	Bank-owned life insurance			1,707		1,709		1,750		2,088		1,752
	Mortgage banking income			7,830		4,264		5,442		8,488		7,531
	Net securities gains			477		279		691		787		1,299
	Net gain / (loss) on other real estate owned and other assets			4,014		175		18		(19)		(66)
	Other income			3,171		8,367		6,553		5,005		6,369
			Total non-interest income	36,112		33,208		32,705		34,612		32,860
Non-interest expense
	Salaries and wages			37,435		36,890		39,140		38,342		36,773
	Employee benefits			9,268		10,266		10,608		10,604		10,138
	Net occupancy			6,427		7,177		6,771		7,092		6,634
	Equipment and software			7,281		6,765		6,810		6,229		5,722
	Marketing			1,802		2,384		1,675		1,577		1,567
	FDIC insurance			181		1,282		1,278		1,948		2,395
	Amortization of intangible assets			2,873		2,896		3,327		3,346		3,365
	Restructuring and merger-related expense			1,222		851		484		3,608		468
	Other operating expenses			17,323		17,816		17,976		17,198		18,440
			Total non-interest expense	83,812		86,327		88,069		89,943		85,502
Income before provision for income taxes				89,180		91,317		64,557		48,974		4,530
	Provision for income taxes			18,592		18,202		11,703		7,669		42
Net Income				70,588		73,115		52,854		41,305		4,488
Preferred stock dividends				2,531		2,531		2,644		-		-
Net income available to common shareholders				$     68,057		$     70,584		$       50,210		$       41,305		$         4,488
Taxable equivalent net interest income				$  116,906		$   117,517		$  120,790		$  121,705		$  120,156
Per common share data
Net income per common share - basic				$          1.02		$         1.05		$           0.75		$           0.61		$           0.07
Net income per common share - diluted				1.01		1.05		0.75		0.61		0.07
Net income per common share - diluted, excluding certain items (1)(2)				1.03		1.06		0.76		0.66		0.07
Dividends declared				0.33		0.33		0.32		0.32		0.32
Book value (period end)				39.96		39.25		38.84		38.51		38.23
Tangible book value (period end) (1)				22.61		22.21		21.75		21.39		21.10
Average common shares outstanding - basic				66,894,398		67,263,714		67,238,005		67,214,759		67,104,628
Average common shares outstanding - diluted				67,066,592		67,335,418		67,304,442		67,269,303		67,181,755
Period end common shares outstanding				65,970,149		67,282,134		67,254,706		67,216,012		67,211,192
Period end preferred shares outstanding				150,000		150,000		150,000		150,000		-
Full time equivalent employees				2,459		2,490		2,612		2,618		2,676
(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 11
(unaudited, dollars in thousands)
				Quarter Ended
				June 30,		Mar. 31,		Dec. 31,		Sept. 30,		June 30,
Asset quality data				2021		2021		2020		2020		2020
Non-performing assets:
	Troubled debt restructurings - accruing			$      5,799		$     3,563		$     3,927		$     4,191		$     5,105
	Non-accrual loans:
		Troubled debt restructurings		1,664		1,768		1,828		1,818		1,339
		Other non-accrual loans		34,548		32,807		35,052		35,448		34,119
		Total non-accrual loans		36,212		34,575		36,880		37,266		35,458
		Total non-performing loans		42,011		38,138		40,807		41,457		40,563
	Other real estate and repossessed assets			773		393		549		738		1,212
		Total non-performing assets		$   42,784		$   38,531		$   41,356		$   42,195		$   41,775
Past due loans (1):
	Loans past due 30-89 days			$   21,233		$   20,602		$   31,596		$   17,338		$   30,595
	Loans past due 90 days or more			8,318		12,824		8,846		10,170		36,903
		Total past due loans		$   29,551		$   33,426		$   40,442		$   27,508		$   67,498
Criticized and classified loans (2):
	Criticized loans			$ 319,448		$ 340,943		$ 362,295		$ 248,264		$ 148,580
	Classified loans			136,927		114,884		132,650		108,594		98,127
		Total criticized and classified loans		$ 456,375		$ 455,827		$ 494,945		$ 356,858		$ 246,707
Loans past due 30-89 days / total portfolio loans (3)				0.21	%	0.19	%	0.29	%	0.16	%	0.28	%
Loans past due 90 days or more / total portfolio loans				0.08		0.12		0.08		0.09		0.33
Non-performing loans / total portfolio loans				0.41		0.36		0.38		0.38		0.37
Non-performing assets/total portfolio loans, other
	real estate and repossessed assets			0.41		0.36		0.38		0.38		0.38
Non-performing assets / total assets				0.25		0.23		0.25		0.26		0.25
Criticized and classified loans / total portfolio loans				4.41		4.26		4.59		3.25		2.23
Allowance for credit losses
Allowance for credit losses - loans				$ 140,730		$ 160,040		$ 185,827		$ 185,109		$ 168,475
Allowance for credit losses - loan commitments				5,766		6,731		9,514		10,829		10,685
Provision for credit losses				(21,025)		(27,958)		(209)		16,288		61,841
Net loan and deposit account overdraft charge-offs and recoveries				(689)		648		524		(133)		1,942
Annualized net loan charge-offs and recoveries /average loans				(0.03)	%	0.02	%	0.02	%	(0.00)	%	0.07	%
Allowance for credit losses - loans / total portfolio loans				1.36	%	1.50	%	1.72	%	1.68	%	1.52	%
Allowance for credit losses - loans / total portfolio loans excluding PPP loans				1.43	%	1.62	%	1.85	%	1.83	%	1.65	%
Allowance for credit losses - loans / non-performing loans				3.35	x	4.20	x	4.55	x	4.47	x	4.15	x
Allowance for credit losses - loans / non-performing loans and
	loans past due			1.97	x	2.24	x	2.29	x	2.68	x	1.56	x
				Quarter Ended
				June 30,		Mar. 31,		Dec. 31,		Sept. 30,		June 30,
				2021		2021		2020		2020		2020
Capital ratios
Tier I leverage capital				10.42	%	10.74	%	10.51	%	10.18	%	9.09	%
Tier I risk-based capital				15.15		14.95		14.72		14.29		12.59
Total risk-based capital				17.68		17.58		17.58		17.18		15.33
Common equity tier 1 capital ratio (CET 1)				13.83		13.65		13.40		12.99		12.59
Average shareholders' equity to average assets				16.44		16.65		16.59		15.92		15.57
Tangible equity to tangible assets (4)				10.34		10.30		10.52		10.27		9.09
Tangible common equity to tangible assets (4)				9.43		9.39		9.58		9.33		9.09
(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 $543.6 million of PPP loans as of June 30, 2021.
(4) See non-GAAP financial measures for additional information relating to the calculation of this ratio.

 

WESBANCO, INC.
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
		June 30,		Mar. 31,		Dec. 31,		Sept. 30,		June 30,		June 30,
(unaudited, dollars in thousands, except shares and per share amounts)		2021		2021		2020		2020		2020		2021	2020
Return on average assets, excluding after-tax restructuring and merger-related expenses:
	Net income available to common shareholders	$         68,057		$        70,584		$        50,210		$        41,305		$          4,488		$       138,641	$        27,884
	Plus: after-tax restructuring and merger-related expenses  (1)	965		672		383		2,850		370		1,638	4,450
	Net income available to common shareholders excluding after-tax restructuring and merger-related expenses	69,022		71,256		50,593		44,155		4,858		140,279	32,334
	Average total assets	$ 17,042,147		$ 16,636,258		$ 16,546,761		$ 16,719,717		$ 16,715,211		$ 16,840,324	$ 16,250,075
Return on average assets, excluding after-tax restructuring and merger-related expenses (annualized)  (2)		1.62%		1.74%		1.22%		1.05%		0.12%		1.68%	0.40%
Return on average equity, excluding after-tax restructuring and merger-related expenses:
	Net income available to common shareholders	$         68,057		$        70,584		$        50,210		$        41,305		$          4,488		$       138,641	$        27,884
	Plus: after-tax restructuring and merger-related expenses  (1)	965		672		383		2,850		370		1,638	4,450
	Net income available to common shareholders excluding after-tax restructuring and merger-related expenses	69,022		71,256		50,593		44,155		4,858		140,279	32,334
	Average total shareholders' equity	$   2,801,455		$   2,770,416		$   2,744,936		$   2,662,513		$   2,602,938		$   2,786,021	$   2,598,504
Return on average equity, excluding after-tax  restructuring and merger-related expenses (annualized)  (2)		9.88%		10.43%		7.33%		6.60%		0.75%		10.15%	2.50%
Return on average tangible equity:
	Net income available to common shareholders	$         68,057		$        70,584		$        50,210		$        41,305		$          4,488		$       138,641	$        27,884
	Plus: amortization of intangibles (1)	2,270		2,288		2,628		2,643		2,658		4,558	5,324
	Net income available to common shareholders before amortization of intangibles	70,327		72,872		52,838		43,948		7,146		143,199	33,208
	Average total shareholders' equity	2,801,455		2,770,416		2,744,936		2,662,513		2,602,938		2,786,021	2,598,504
	Less: average goodwill and other intangibles, net of def. tax liability	(1,145,882)		(1,148,171)		(1,150,184)		(1,150,549)		(1,152,856)		(1,147,020)	(1,132,591)
	Average tangible equity	$   1,655,573		$   1,622,245		$   1,594,752		$   1,511,964		$   1,450,082		$   1,639,001	$   1,465,913
Return on average tangible equity (annualized)  (2)		17.04%		18.22%		13.18%		11.56%		1.98%		17.62%	4.56%
	Average tangible common equity	$   1,511,089		$   1,477,736		$   1,450,243		$   1,431,657		$   1,450,082		$   1,494,517	$   1,465,913
Return on average tangible common equity (annualized)  (2)		18.67%		20.00%		14.49%		12.21%		1.98%		19.32%	4.56%
Return on average tangible equity, excluding after-tax restructuring and merger-related expenses:
	Net income available to common shareholders	$         68,057		$        70,584		$        50,210		$        41,305		$          4,488		$       138,641	$        27,884
	Plus: after-tax restructuring and merger-related expenses  (1)	965		672		383		2,850		370		1,638	4,450
	Plus: amortization of intangibles  (1)	2,270		2,288		2,628		2,643		2,658		4,558	5,324
	Net income available to common shareholders before amortization of intangibles
	and excluding after-tax restructuring and merger-related expenses	71,292		73,544		53,221		46,798		7,516		144,837	37,659
	Average total shareholders' equity	2,801,455		2,770,416		2,744,936		2,662,513		2,602,938		2,786,021	2,598,504
	Less: average goodwill and other intangibles, net of def. tax liability	(1,145,882)		(1,148,171)		(1,150,184)		(1,150,549)		(1,152,856)		(1,147,020)	(1,132,591)
	Average tangible equity	$   1,655,573		$   1,622,245		$   1,594,752		$   1,511,964		$   1,450,082		$   1,639,001	$   1,465,913
Return on average tangible equity, excluding after-tax restructuring and merger-related expenses (annualized)  (2)		17.27%		18.39%		13.28%		12.31%		2.08%		17.82%	5.17%
	Average tangible common equity	$   1,511,089		$   1,477,736		$   1,450,243		$   1,431,657		$   1,450,082		$   1,494,517	$   1,465,913
Return on average tangible common equity, excluding after-tax restructuring and merger-related expenses (annualized)  (2)		18.92%		20.18%		14.60%		13.00%		2.08%		19.54%	5.17%
Efficiency ratio:
	Non-interest expense	$         83,812		$        86,327		$        88,069		$        89,943		$        85,502		$       170,139	$      176,835
	Less: restructuring and merger-related expense	(1,222)		(851)		(484)		(3,608)		(468)		(2,074)	(5,633)
	Non-interest expense excluding restructuring and merger-related expense	82,590		85,476		87,585		86,335		85,034		168,065	171,202
	Net interest income on a fully taxable equivalent basis	116,906		117,517		120,790		121,705		120,156		234,423	241,502
	Non-interest income	36,112		33,208		32,705		34,612		32,860		69,320	60,869
	Net interest income on a fully taxable equivalent basis plus non-interest income	$       153,018		$      150,725		$      153,495		$      156,317		$      153,016		$       303,743	$      302,371
	Efficiency ratio	53.97%		56.71%		57.06%		55.23%		55.57%		55.33%	56.62%
Net income available to common shareholders, excluding after-tax restructuring and merger-related expenses:
	Net income available to common shareholders	$         68,057		$        70,584		$        50,210		$        41,305		$          4,488		$       138,641	$        27,884
	Add: After-tax restructuring and merger-related expenses (1)	965		672		383		2,850		370		1,638	4,450
Net income available to common shareholders, excluding after-tax restructuring and merger-related expenses		$         69,022		$        71,256		$        50,593		$        44,155		$          4,858		$       140,279	$        32,334
Net income per common share - diluted, excluding after-tax restructuring and merger-related expenses:
	Net income per common share - diluted	$              1.01		$            1.05		$            0.75		$            0.61		$            0.07		$              2.06	$            0.41
	Add: After-tax restructuring and merger-related expenses per common share - diluted (1)	0.02		0.01		0.01		0.05		(0.00)		0.03	0.07
Net income per common share - diluted, excluding after-tax restructuring and merger-related expenses		$              1.03		$            1.06		$            0.76		$            0.66		$            0.07		$              2.09	$            0.48
		Period End
		June 30,		Mar. 31,		Dec. 31,		Sept. 30,		June 30,
		2021		2021		2020		2020		2020
Tangible book value per share:
	Total shareholders' equity	$   2,780,836		$   2,785,522		$   2,756,737		$   2,732,966		$   2,569,521
	Less:  goodwill and other intangible assets, net of def. tax liability	(1,144,604)		(1,146,874)		(1,149,161)		(1,150,939)		(1,151,523)
	Less: preferred shareholder's equity	(144,484)		(144,484)		(144,484)		(144,529)		-
	Tangible common equity	1,491,748		1,494,164		1,463,092		1,437,498		1,417,998
	Common shares outstanding	65,970,149		67,282,134		67,254,706		67,216,012		67,211,192
Tangible book value per share		$           22.61		$          22.21		$          21.75		$          21.39		$          21.10
Tangible common equity to tangible assets:
	Total shareholders' equity	$   2,780,836		$   2,785,522		$   2,756,737		$   2,732,966		$   2,569,521
	Less:  goodwill and other intangible assets, net of def. tax liability	(1,144,604)		(1,146,874)		(1,149,161)		(1,150,939)		(1,151,523)
	Tangible equity	1,636,232		1,638,648		1,607,576		1,582,027		1,417,998
	Less: preferred shareholder's equity	(144,484)		(144,484)		(144,484)		(144,529)		-
	Tangible common equity	1,491,748		1,494,164		1,463,092		1,437,498		1,417,998
	Total assets	16,966,867		17,057,788		16,425,610		16,552,140		16,755,395
	Less:  goodwill and other intangible assets, net of def. tax liability	(1,144,604)		(1,146,874)		(1,149,161)		(1,150,939)		(1,151,523)
	Tangible assets	$ 15,822,263		$ 15,910,914		$ 15,276,449		$ 15,401,201		$ 15,603,872
Tangible equity to tangible assets		10.34%		10.30%		10.52%		10.27%		9.09%
Tangible common equity to tangible assets		9.43%		9.39%		9.58%		9.33%		9.09%
(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 13
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
		June 30,		Mar. 31,		Dec. 31,		Sept. 30,		June 30,		June 30,
(unaudited, dollars in thousands, except shares and per share amounts)		2021		2021		2020		2020		2020		2021	2020
Pre-tax, pre-provision income:
	Income before provision for income taxes	$         89,180		$        91,317		$        64,557		$        48,974		$          4,530		$       180,497	$        31,547
	Add: provision for credit losses	(21,025)		(27,958)		(209)		16,288		61,841		(48,984)	91,661
Pre-tax, pre-provision income		$         68,155		$        63,359		$        64,348		$        65,262		$        66,371		$       131,513	$      123,208
Pre-tax, pre-provision income, excluding restructuring and merger-related expenses:
	Income before provision for income taxes	$         89,180		$        91,317		$        64,557		$        48,974		$          4,530		$       180,497	$        31,547
	Add: provision for credit losses	(21,025)		(27,958)		(209)		16,288		61,841		(48,984)	91,661
	Add: restructuring and merger-related expenses	1,222		851		484		3,608		468		2,074	5,633
Pre-tax, pre-provision income, excluding restructuring and merger-related expenses		$         69,377		$        64,210		$        64,832		$        68,870		$        66,839		$       133,587	$      128,841
Return on average assets, excluding certain items (1):
	Income before provision for income taxes	$         89,180		$        91,317		$        64,557		$        48,974		$          4,530		$       180,497	$        31,547
	Add: provision for credit losses	(21,025)		(27,958)		(209)		16,288		61,841		(48,984)	91,661
	Add: restructuring and merger-related expenses	1,222		851		484		3,608		468		2,074	5,633
Pre-tax, pre-provision income, excluding restructuring and merger-related expenses		69,377		64,210		64,832		68,870		66,839		133,587	128,841
	Average total assets	$ 17,042,147		$ 16,636,258		$ 16,546,761		$ 16,719,717		$ 16,715,211		$ 16,840,324	$ 16,250,075
Return on average assets, excluding certain items (annualized)  (1) (2)		1.63%		1.57%		1.56%		1.64%		1.61%		1.60%	1.59%
Return on average equity, excluding certain items (1):
	Income before provision for income taxes	$         89,180		$        91,317		$        64,557		$        48,974		$          4,530		$       180,497	$        31,547
	Add: provision for credit losses	(21,025)		(27,958)		(209)		16,288		61,841		(48,984)	91,661
	Add: restructuring and merger-related expenses	1,222		851		484		3,608		468		2,074	5,633
Pre-tax, pre-provision income, excluding restructuring and merger-related expenses		69,377		64,210		64,832		68,870		66,839		133,587	128,841
	Average total shareholders' equity	$   2,801,455		$   2,770,416		$   2,744,936		$   2,662,513		$   2,602,938		$   2,786,021	$   2,598,504
Return on average equity, excluding certain items (annualized) (1) (2)		9.93%		9.40%		9.40%		10.29%		10.33%		9.67%	9.97%
Return on average tangible equity, excluding certain items (1):
	Income before provision for income taxes	$         89,180		$        91,317		$        64,557		$        48,974		$          4,530		$       180,497	$        31,547
	Add: provision for credit losses	(21,025)		(27,958)		(209)		16,288		61,841		(48,984)	91,661
	Add: amortization of intangibles	2,873		2,896		3,327		3,346		3,365		5,769	6,739
	Add: restructuring and merger-related expenses	1,222		851		484		3,608		468		2,074	5,633
Income before provision, restructuring and merger-related expenses and amortization of intangibles		72,250		67,106		68,159		72,216		70,204		139,356	135,580
	Average total shareholders' equity	2,801,455		2,770,416		2,744,936		2,662,513		2,602,938		2,786,021	2,598,504
	Less: average goodwill and other intangibles, net of def. tax liability	(1,145,882)		(1,148,171)		(1,150,184)		(1,150,549)		(1,152,856)		(1,147,020)	(1,132,591)
	Average tangible equity	$   1,655,573		$   1,622,245		$   1,594,752		$   1,511,964		$   1,450,082		$   1,639,001	$   1,465,913
Return on average tangible equity, excluding certain items (annualized) (1) (2)		17.50%		16.78%		17.00%		19.00%		19.47%		17.15%	18.60%
	Average tangible common equity	$   1,511,089		$   1,477,736		$   1,450,243		$   1,431,657		$   1,450,082		$   1,494,517	$   1,465,913
Return on average tangible common equity, excluding certain items (annualized) (1) (2)		19.18%		18.42%		18.70%		20.07%		19.47%		18.80%	18.60%
(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 earnings for Q2 2021?

WesBanco reported net income of $68.1 million and diluted earnings per share of $1.01 for Q2 2021.

How did WesBanco's performance compare to Q2 2020?

In Q2 2020, WesBanco's net income was $4.5 million, and diluted EPS was $0.07.

What is the total deposit growth reported by WesBanco?

WesBanco reported a 9.3% year-over-year increase in total deposits, amounting to $13.3 billion.

What was the change in WesBanco's net interest margin?

WesBanco's net interest margin decreased to 3.12% for Q2 2021, down 20 basis points from the prior year.

How did trust assets perform for WesBanco in 2021?

WesBanco's trust assets increased by 22.2% year-over-year to a record $5.5 billion.