WesBanco Announces Second Quarter 2022 Financial Results

Rhea-AI Summary

WesBanco, Inc. (WSBC) reported a net income of $40.2 million for Q2 2022, translating to earnings per share (EPS) of $0.67, down from $68.1 million and $1.01 per share in Q2 2021. This decline reflects a lack of provision releases seen in the previous year. Total loans reached $10.2 billion, growing 5.4% sequentially, while deposits stood at $13.6 billion, marking a 5.3% year-over-year increase. Non-interest income fell by 25.3% to $27 million, largely due to lower mortgage banking income. WesBanco repurchased 1.1 million shares, emphasizing capital return to shareholders.

Positive

• 5.4% sequential loan growth, 21.8% annualized
• Deposit growth of 5.3% year-over-year
• Named one of the best banks in Ohio and Kentucky
• Maintained strong credit quality metrics

Negative

• Net income decreased by 41% year-over-year
• Non-interest income decreased by 25.3% from Q2 2021
• Net interest income declined by 3.1% in Q2 2022

WHEELING, W.V., July 26, 2022 /PRNewswire/ -- WesBanco, Inc. ("WesBanco") (Nasdaq: WSBC), a diversified, multi-state bank holding company, today announced net income and related earnings per share for the three months ended June 30, 2022.  Net income available to common shareholders for the second quarter of 2022 was $40.2 million, with diluted earnings per share of $0.67, compared to $68.1 million and $1.01 per diluted share, respectively, for the second quarter of 2021, which included a release of provision for credit losses of $21.0 million, or $16.6 million net of tax, due to improved economic forecasts in the prior year period.  For the six months ended June 30, 2022, net income was $81.8 million, or $1.34 per diluted share, compared to $138.6 million, or $2.06 per diluted share, for the 2021 period, which included a release of provision for credit losses of $49.0 million, or $39.0 million net of tax.  Net income available to common shareholders, excluding after-tax restructuring and merger-related expenses, for the three months ended June 30, 2022, was $40.3 million, or $0.67 per diluted share, as compared to $69.0 million and $1.03 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, 2022 was $83.1 million, or $1.36 per diluted share, as compared to $140.3 million, or $2.09 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,
			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)			$      40,258		$       0.67		$      69,022		$       1.03			$      83,107		$       1.36		$    140,279		$       2.09
Less: After-tax restructuring and merger-related expenses			(41)		-		(965)		(0.02)			(1,300)		(0.02)		(1,638)		(0.03)
Net income available to common shareholders (GAAP)			$      40,217		$       0.67		$      68,057		$       1.01			$      81,807		$       1.34		$    138,641		$       2.06
(1) See non-GAAP financial measures for additional information relating to the calculation of these items.

Financial and operational highlights during the quarter ended June 30, 2022:

• Reflecting the strength of our markets and lending teams, total loan growth was 5.4% sequentially, or 21.8% annualized, and 3.8% year-over-year, when excluding Small Business Administration Payroll Protection Program ("SBA PPP") loans
• Residential mortgage production of $328 million, which was consistent with production in the year ago period, significantly outperformed industry trends
• Deposit growth, excluding certificates of deposit ("CDs"), was 5.3% year-over-year, driven by growth in demand deposits and savings accounts
• Second quarter net interest margin of 3.03% increased 8 basis points sequentially, and, when excluding purchase accounting and SBA PPP loan accretion, it increased 13 basis points sequentially to 2.93%
• Strong execution, combined with being named both one of America's best employers and most trustworthy companies, has enabled us to exceed our previously announced commercial hiring plan in half the time, as we have hired 24 commercial lenders since January, with 10 of those expected to start during the third quarter
• In addition, we announced the hiring of Jeffrey Jackson as Senior Executive Vice President and Chief Operating Officer, with the expectation that he will succeed Todd Clossin as President and CEO upon Mr. Clossin's anticipated retirement date of January 1, 2024, allowing for a smooth and successful transition for our employees, customers, and shareholders
• During the quarter, we continued to return capital to our shareholders as we purchased approximately 1.1 million shares of our common stock on the open market under existing share repurchase authorizations
• 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)
• WesBanco continues to be recognized by its customers for high quality customer service, financial advice, digital services, and trust as it was named multiple times to the Forbes 2022 Best-in-State Banks list as the #1 bank in Ohio and the #2 bank in Kentucky

"We are very pleased with WesBanco's performance during the second quarter of 2022, as we continue to demonstrate the success of our operational strategies implemented the past few years," said Todd F. Clossin, President and Chief Executive Officer of WesBanco.  "We reported strong, broad-based loan growth that was driven by the strength of our teams and their respective markets, as we continued to execute upon our plans of hiring additional revenue-producers across commercial lending, residential lending, and wealth management.  Further, while making strategic, long-term investments, we have maintained our diligent focus on expense management through controlling discretionary costs and managing our financial center footprint.  We believe that the strong foundation we have developed, supported by our unique long-term advantages, position us well for our future opportunities."

Mr. Clossin added, "WesBanco is privileged to have been named one of the top banks in the states of Kentucky and Ohio, which follows our also being recognized by Forbes as the only midsize bank ranked in the top ten of both America's Best Banks for our strong financial performance and Best Midsize Employers for our employee focus.  These top rankings are a strong testament to the outstanding efforts and dedication of our employees, and we are honored to again be recognized by our customers for our trust and service."

Balance Sheet
Loan growth for the second quarter of 2022 reflects strong performance by our commercial and consumer lending teams and efforts to keep more 1-to-4 family residential mortgages on the balance sheet, partially offset by the continuation of both SBA PPP loan forgiveness and elevated commercial real estate payoffs.  As of June 30, 2022, total portfolio loans of $10.2 billion, when excluding SBA PPP loans, driven by strong growth across all loan categories and markets, increased 5.4%, or 21.8% annualized, when compared to March 31, 2022, and increased 3.8% from the prior year period.  This strong sequential quarter loan growth demonstrates the successful execution of our expansion into higher-growth markets, including Kentucky and Maryland, and ability to hire top-tier commercial and mortgage loan officers across our footprint.  The second quarter of 2022 included the forgiveness of approximately 606 SBA PPP loans totaling $50 million (net of deferred fees).  As of June 30, 2022, approximately 480 SBA PPP loans for $27 million remained in the loan portfolio.

As of June 30, 2022, total deposits were $13.6 billion, which increased year-over-year due primarily to increased personal savings, which more than offset a $379.2 million year-over-year reduction in CDs.  Deposits, excluding CDs, increased 5.3% year-over-year, driven by a 4.9% increase in total demand deposits, which represent approximately 59% of total deposits, as well as a 10.5% increase in savings accounts.  Furthermore, non-interest bearing demand deposits represented approximately 35% of total deposits, as of June 30, 2022.

Credit Quality
As of June 30, 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.  In addition, criticized and classified loans as a percent of the loan portfolio decreased 127 basis points year-over-year to 3.14%.  For the second quarter, net loan charge-offs to average loans were immaterial at zero basis points.  The allowance for credit losses to total portfolio loans at June 30, 2022 was $117.4 million, or 1.15% of total loans.  During the three- and six- month periods ending June 30, 2021, we recorded negative provision for credit losses of $21.0 million and $49.0 million, respectively, due to significantly improved macroeconomic forecasts and other factors during 2021, as compared to negative provisions of $0.8 million and $4.3 million, respectively, in the current year.

Net Interest Margin and Income
The net interest margin of 3.03% for the second quarter of 2022 increased 8 basis points sequentially, which reflects the 125 basis point increase in the federal fund rate during the last 3 months, as well as our successful deployment of excess cash through loan and securities growth.  As a result of increased cash balances from our customers' higher personal savings, investment securities increased by $0.3 billion year-over-year and, as of June 30, 2022, represented approximately 25% of total assets.  We remain focused on controlling the costs of our various funding sources, which is enhanced by the pricing advantage of our robust legacy deposit base.  We have reduced deposit funding costs 4 basis points year-over-year to 13 basis points for the second quarter of 2022, or just 9 basis points when including non-interest bearing deposits.  The cost of total interest-bearing liabilities decreased 5 basis points year-over-year to 26 basis points, or 17 basis points when including non-interest bearing deposits.  Accretion from acquisitions benefited the second quarter net interest margin by 6 basis points, as compared to 12 basis points in the prior year period.  Lastly, the forgiveness of SBA PPP loans benefited the second quarter of 2022 net interest margin by a net 4 basis points, as compared to a net 5 basis points in the prior year period.

Net interest income decreased $3.6 million, or 3.1%, during the second quarter of 2022, as compared to the same quarter of 2021, reflecting lower accretion from purchase accounting and lower SBA PPP-related loan income.  For the six months ended June 30, 2022, net interest income decreased $12.4 million, or 5.3%, primarily due to the reasons discussed for the three-month period comparison.

Non-Interest Income
For the second quarter of 2022, non-interest income of $27.0 million decreased $9.1 million, or 25.3%, from the second quarter of 2021, driven primarily by lower mortgage banking income, which decreased $6.5 million year-over-year, and a net loss on other assets.  Reflective of increased general consumer spending, service charges on deposits increased $1.6 million year-over-year to $6.5 million and electronic banking fees increased slightly to $5.2 million.  While mortgage originations remained strong year-over-year, mortgage banking income was lower due to our continued efforts to retain more residential mortgages on the balance sheet.  We retained 80% of originations during the second quarter of 2022 as compared to 52% last year.  Reflecting the strength of our lending teams and home purchase and construction portfolio, residential mortgage originations during the second quarter totaled $328 million, up 21% from the first quarter and roughly flat to the prior year period.  Net securities losses reflected a $1.2 million loss which is the offset to equity securities in the deferred compensation plan, recorded within employee benefits expense.  The net loss on other assets of $1.3 million reflects the change in the fair value of underlying equity investments held by Wesbanco Community Development Corporation primarily driven by the decline in the equity market, as compared to a net gain of $3.7 million for the same investment in the prior year period.

Primarily reflecting the items discussed above, as well as lower loan swap-related income, which is recorded in other income, non-interest income, for the six months ended June 30, 2022, decreased $12.0 million, or 17.2%.  In addition, bank-owned life insurance of $6.3 million increased $2.8 million year-over-year due to higher death benefits and the impact of new policies purchased during the third quarter of 2021.

Non-Interest Expense
Excluding restructuring and merger-related expenses, non-interest expense for the three months ended June 30, 2022 totaled $87.0 million, a 5.3% year-over-year increase and a 1.2% increase from the first quarter of this year.  Salaries and wages increased $3.8 million, or 10.1%, compared to the prior year period due to higher salary expense related to normal merit increases and the hourly wage increase that we implemented last year, lower deferred loan origination costs, and higher bonus and stock option accruals.  Employee benefits included a $1.2 million credit related to the deferred compensation plan.  FDIC insurance of $1.9 million increased $1.8 million from last year due primarily to certain prior period reporting adjustments resulting in a $1.0 million refund and improved risk factors recorded in the prior year period.  Equipment and software expense for the second quarter of 2022 increased $0.4 million, or 5.8% year-over-year due primarily to the movement of online banking costs from other operating expenses.  Other operating expenses decreased $1.4 million, or 7.9%, due to the aforementioned move of online banking costs, as well as a reduction in ACH and ATM processing charges related to a change in providers, in conjunction with last summer's core banking software system conversion, as well as lower legal costs associated with the resolution of a lawsuit in the prior year period.

On a similar basis, non-interest expense during the first half of 2022 increased $4.9 million, or 2.9%, compared to the prior year period, due primarily to higher salaries and wages and higher FDIC insurance, as described above, 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 June 30, 2022, Tier I leverage was 9.51%, Tier I risk-based capital ratio was 12.49%, common equity Tier 1 capital ratio ("CET 1") was 11.31%, and total risk-based capital was 15.40%.

During the second quarter of 2022, WesBanco repurchased 1.1 million shares of its outstanding common stock on the open market at a total cost of $35.8 million, or $33.28 per share.  As of June 30, 2022, approximately 1.8 million shares remained for repurchase under the existing share repurchase authorization that was approved on February 24, 2022, by WesBanco's Board of Directors.

Conference Call and Webcast
WesBanco will host a conference call to discuss the Company's financial results for the second quarter of 2022 at 10:00 a.m. ET on Wednesday, July 27, 2022.  Interested parties can access the live webcast of the conference call through the Investor Relations section of the Company's website, www.wesbanco.com.  Participants can also listen to the conference call by dialing 888-347-6607, 855-669-9657 for Canadian callers, or 412-902-4290 for international callers, and asking to be joined into the WesBanco call.  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 10162208.  The replay will begin at approximately 12:00 p.m. ET on July 27, 2022 and end at 12 a.m. ET on August 10, 2022.  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 quarter ended March 31, 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 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 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 $4.8 billion of assets under management (as of June 30, 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 Six Months Ended
Statement of Income				June 30,						June 30,
Interest and dividend income				2022		2021		% Change		2022		2021		% Change
	Loans, including fees			$       96,412		$     105,968		(9.0)		$    189,532		$     215,327		(12.0)
	Interest and dividends on securities:
		Taxable		15,825		12,900		22.7		29,937		24,027		24.6
		Tax-exempt		4,706		3,952		19.1		9,049		7,862		15.1
			Total interest and dividends on securities	20,531		16,852		21.8		38,986		31,889		22.3
	Other interest income			1,504		507		196.6		2,103		1,166		80.4
Total interest and dividend income				118,447		123,327		(4.0)		230,621		248,382		(7.2)
Interest expense
	Interest bearing demand deposits			1,153		1,009		14.3		1,965		2,052		(4.2)
	Money market deposits			383		551		(30.5)		704		1,130		(37.7)
	Savings deposits			330		261		26.4		595		525		13.3
	Certificates of deposit			1,116		2,026		(44.9)		2,389		4,396		(45.7)
			Total interest expense on deposits	2,982		3,847		(22.5)		5,653		8,103		(30.2)
	Federal Home Loan Bank borrowings			411		1,781		(76.9)		986		4,195		(76.5)
	Other short-term borrowings			48		40		20.0		96		159		(39.6)
	Subordinated debt and junior subordinated debt			2,778		1,804		54.0		3,948		3,593		9.9
			Total interest expense	6,219		7,472		(16.8)		10,683		16,050		(33.4)
Net interest income				112,228		115,855		(3.1)		219,938		232,332		(5.3)
	Provision for credit losses			(812)		(21,025)		96.1		(4,250)		(48,984)		91.3
Net interest income after provision for credit losses				113,040		136,880		(17.4)		224,188		281,316		(20.3)
Non-interest income
	Trust fees			6,527		7,148		(8.7)		14,362		14,780		(2.8)
	Service charges on deposits			6,487		4,876		33.0		12,577		9,770		28.7
	Electronic banking fees			5,154		5,060		1.9		10,499		9,426		11.4
	Net securities brokerage revenue			2,258		1,829		23.5		4,478		3,352		33.6
	Bank-owned life insurance			2,384		1,707		39.7		6,264		3,416		83.4
	Mortgage banking income			1,328		7,830		(83.0)		3,251		12,094		(73.1)
	Net securities (losses)/gains			(1,183)		477		(348.0)		(1,832)		756		(342.3)
	Net (loss)/gain on other real estate owned and other assets			(1,302)		4,014		(132.4)		(2,108)		4,189		(150.3)
	Other income			5,330		3,171		68.1		9,874		11,537		(14.4)
			Total non-interest income	26,983		36,112		(25.3)		57,365		69,320		(17.2)
Non-interest expense
	Salaries and wages			41,213		37,435		10.1		80,150		74,324		7.8
	Employee benefits			8,722		9,268		(5.9)		17,880		19,534		(8.5)
	Net occupancy			6,119		6,427		(4.8)		13,354		13,605		(1.8)
	Equipment and software			7,702		7,281		5.8		15,713		14,045		11.9
	Marketing			2,749		1,802		52.6		5,170		4,185		23.5
	FDIC insurance			1,937		181		970.2		3,459		1,462		136.6
	Amortization of intangible assets			2,579		2,873		(10.2)		5,178		5,769		(10.2)
	Restructuring and merger-related expense			52		1,222		(95.7)		1,646		2,074		(20.6)
	Other operating expenses			15,946		17,323		(7.9)		32,019		35,141		(8.9)
			Total non-interest expense	87,019		83,812		3.8		174,569		170,139		2.6
Income before provision for income taxes				53,004		89,180		(40.6)		106,984		180,497		(40.7)
	Provision for income taxes			10,256		18,592		(44.8)		20,114		36,793		(45.3)
Net Income				42,748		70,588		(39.4)		86,870		143,704		(39.5)
Preferred stock dividends				2,531		2,531		-		5,063		5,063		-
Net income available to common shareholders				$       40,217		$       68,057		(40.9)		$       81,807		$     138,641		(41.0)
Taxable equivalent net interest income				$    113,479		$  116,906		(2.9)		$    222,343		$  234,423		(5.2)
Per common share data
Net income per common share - basic				$           0.67		$           1.02		(34.3)		$           1.35		$           2.07		(34.8)
Net income per common share - diluted				0.67		1.01		(33.7)		1.34		2.06		(35.0)
Net income per common share - diluted, excluding certain items (1)(2)				0.67		1.03		(35.0)		1.36		2.09		(34.9)
Dividends declared				0.34		0.33		3.0		0.68		0.66		3.0
Book value (period end)				38.92		39.96		(2.6)		38.92		39.96		(2.6)
Tangible book value (period end) (1)				19.89		22.61		(12.0)		19.89		22.61		(12.0)
Average common shares outstanding - basic				60,036,103		66,894,398		(10.3)		60,736,858		67,078,036		(9.5)
Average common shares outstanding - diluted				60,185,207		67,066,592		(10.3)		60,899,270		67,239,548		(9.4)
Period end common shares outstanding				59,698,788		65,970,149		(9.5)		59,698,788		65,970,149		(9.5)
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 Six Months Ended
						June 30,
						2022		2021		% Change
Return on average assets						0.97	%	1.66	%	(41.57)	%
Return on average assets, excluding
after-tax restructuring and merger-related expenses (1)						0.99		1.68		(41.07)
Return on average equity						6.39		10.04		(36.35)
Return on average equity, excluding
after-tax restructuring and merger-related expenses (1)						6.49		10.15		(36.06)
Return on average tangible equity (1)						12.00		17.62		(31.90)
Return on average tangible equity, excluding
after-tax restructuring and merger-related expenses (1)						12.18		17.82		(31.65)
Return on average tangible common equity (1)						13.33		19.32		(31.00)
Return on average tangible common equity, excluding
after-tax restructuring and merger-related expenses (1)						13.53		19.54		(30.76)
Yield on earning assets (2)						3.14		3.41		(7.92)
Cost of interest bearing liabilities						0.23		0.34		(32.35)
Net interest spread (2)						2.91		3.07		(5.21)
Net interest margin (2)						2.99		3.19		(6.27)
Efficiency (1) (2)						61.82		55.33		11.73
Average loans to average deposits						71.71		82.47		(13.05)
Annualized net loan charge-offs/average loans						0.00		0.00		-
Effective income tax rate						18.80		20.38		(7.75)
						For the Three Months Ended
						June 30,		Mar. 31,		Dec. 31,		Sept. 30,		June 30,
						2022		2022		2021		2021		2021
Return on average assets						0.95	%	0.99	%	1.21	%	0.97	%	1.60	%
Return on average assets, excluding
after-tax restructuring and merger-related expenses (1)						0.95		1.02		1.21		1.06		1.62
Return on average equity						6.43		6.35		7.56		5.98		9.74
Return on average equity, excluding
after-tax restructuring and merger-related expenses (1)						6.43		6.54		7.58		6.49		9.88
Return on average tangible equity (1)						12.35		11.67		13.62		10.72		17.04
Return on average tangible equity, excluding
after-tax restructuring and merger-related expenses (1)						12.36		12.01		13.66		11.57		17.27
Return on average tangible common equity (1)						13.80		12.90		15.00		11.76		18.67
Return on average tangible common equity, excluding
after-tax restructuring and merger-related expenses (1)						13.82		13.27		15.04		12.70		18.92
Yield on earning assets (2)						3.20		3.07		3.10		3.24		3.32
Cost of interest bearing liabilities						0.26		0.19		0.20		0.25		0.31
Net interest spread (2)						2.94		2.88		2.90		2.99		3.01
Net interest margin (2)						3.03		2.95		2.97		3.08		3.12
Efficiency (1) (2)						61.91		61.73		61.99		60.52		53.97
Average loans to average deposits						72.36		71.05		72.61		75.46		79.82
Annualized net loan charge-offs and recoveries /average loans						0.00		0.00		0.04		0.03		(0.03)
Effective income tax rate						19.35		18.26		18.32		19.34		20.85
Trust assets, market value at period end						$ 4,803,043		$ 5,412,342		$ 5,644,975		$ 5,464,159		$ 5,480,995
(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, 2021
Assets					2022		2021		% Change	2021	to June 30, 2022
Cash and due from banks					$       186,534		$      208,992		(10.7)	$          157,046	18.8
Due from banks - interest bearing					263,475		637,312		(58.7)	1,094,312	(75.9)
Securities:
	Equity securities, at fair value				11,413		13,494		(15.4)	13,466	(15.2)
	Available-for-sale debt securities, at fair value				2,884,651		2,964,264		(2.7)	3,013,462	(4.3)
	Held-to-maturity debt securities (fair values of $1,153,594; $934,487
	and $1,028,452, respectively)				1,281,295		902,172		42.0	1,004,823	27.5
		Allowance for credit losses, held-to-maturity debt securities			(265)		(227)		(16.7)	(268)	1.1
	Net held-to-maturity debt securities				1,281,030		901,945		42.0	1,004,555	27.5
		Total securities			4,177,094		3,879,703		7.7	4,031,483	3.6
Loans held for sale					17,560		41,461		(57.6)	25,277	(30.5)
Portfolio loans:
	Commercial real estate				5,852,564		5,705,246		2.6	5,538,968	5.7
	Commercial and industrial				1,549,768		2,119,186		(26.9)	1,590,320	(2.5)
	Residential real estate				1,907,875		1,625,632		17.4	1,721,378	10.8
	Home equity				597,845		631,059		(5.3)	605,682	(1.3)
	Consumer				300,637		276,069		8.9	277,130	8.5
Total portfolio loans, net of unearned income					10,208,689		10,357,192		(1.4)	9,733,478	4.9
Allowance for credit losses - loans					(117,403)		(140,730)		16.6	(121,622)	3.5
		Net portfolio loans			10,091,286		10,216,462		(1.2)	9,611,856	5.0
Premises and equipment, net					216,293		235,227		(8.0)	229,016	(5.6)
Accrued interest receivable					61,918		64,020		(3.3)	60,844	1.8
Goodwill and other intangible assets, net					1,146,456		1,157,322		(0.9)	1,151,634	(0.4)
Bank-owned life insurance					348,807		309,454		12.7	350,359	(0.4)
Other assets					290,201		216,914		33.8	215,298	34.8
Total Assets					$ 16,799,624		$ 16,966,867		(1.0)	$     16,927,125	(0.8)
Liabilities
Deposits:
	Non-interest bearing demand				$   4,738,830		$   4,409,221		7.5	$       4,590,895	3.2
	Interest bearing demand				3,258,871		3,214,484		1.4	3,380,056	(3.6)
	Money market				1,770,859		1,771,686		(0.0)	1,739,750	1.8
	Savings deposits				2,695,437		2,438,328		10.5	2,562,510	5.2
	Certificates of deposit				1,105,305		1,484,536		(25.5)	1,292,652	(14.5)
		Total deposits			13,569,302		13,318,255		1.9	13,565,863	0.0
Federal Home Loan Bank borrowings					122,650		313,960		(60.9)	183,920	(33.3)
Other short-term borrowings					147,964		135,267		9.4	141,893	4.3
Subordinated debt and junior subordinated debt					280,910		192,571		45.9	132,860	111.4
		Total borrowings			551,524		641,798		(14.1)	458,673	20.2
Accrued interest payable					2,815		3,342		(15.8)	1,901	48.1
Other liabilities					208,032		222,636		(6.6)	207,522	0.2
Total Liabilities					14,331,673		14,186,031		1.0	14,233,959	0.7
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; 59,698,788, 65,970,149 and 62,307,245
	shares outstanding, respectively				141,834		141,834		-	141,834	-
Capital surplus					1,632,617		1,632,460		0.0	1,635,642	(0.2)
Retained earnings					1,018,209		925,977		10.0	977,765	4.1
Treasury stock (8,382,518, 2,111,157 and 5,774,061 shares - at cost, respectively)					(291,337)		(74,996)		(288.5)	(199,759)	(45.8)
Accumulated other comprehensive (loss)/income					(176,061)		12,586		NM	(5,120)	NM
Deferred benefits for directors					(1,795)		(1,509)		(19.0)	(1,680)	(6.8)
Total Shareholders' Equity					2,467,951		2,780,836		(11.3)	2,693,166	(8.4)
Total Liabilities and Shareholders' Equity					$ 16,799,624		$ 16,966,867		(1.0)	$     16,927,125	(0.8)
NM = Not Meaningful

 

 

WESBANCO, INC.
Consolidated Selected Financial Highlights								Page 8
(unaudited, dollars in thousands, except shares)
Balance sheet					June 30,		March 31,
Assets					2022		2022	% Change
Cash and due from banks					$       186,534		$      200,513	(7.0)
Due from banks - interest bearing					263,475		1,168,985	(77.5)
Securities:
	Equity securities, at fair value				11,413		12,757	(10.5)
	Available-for-sale, at fair value				2,884,651		2,911,373	(0.9)
	Held-to-maturity (fair values of $1,153,594 and $1,092,993, respectively)				1,281,295		1,157,202	10.7
		Allowance for credit losses, held-to-maturity debt securities			(265)		(285)	7.0
	Net held-to-maturity debt securities				1,281,030		1,156,917	7.0
		Total securities			4,177,094		4,081,047	10.7
Loans held for sale					17,560		15,959	2.4
Portfolio Loans:
	Commercial real estate				5,852,564		5,580,082	4.9
	Commercial and industrial				1,549,768		1,513,078	2.4
	Residential real estate				1,907,875		1,767,064	8.0
	Home equity				597,845		592,872	0.8
	Consumer				300,637		280,176	7.3
Total portfolio loans, net of unearned income					10,208,689		9,733,272	4.9
Allowance for credit losses - loans					(117,403)		(117,865)	0.4
	Net portfolio loans				10,091,286		9,615,407	4.9
Premises and equipment, net					216,293		219,907	(1.6)
Accrued interest receivable					61,918		60,370	2.6
Goodwill and other intangible assets, net					1,146,456		1,149,035	(0.2)
Bank-owned life insurance					348,807		348,179	0.2
Other assets					290,201		244,613	18.6
Total Assets					$ 16,799,624		$ 17,104,015	(1.8)
Liabilities
Deposits:
	Non-interest bearing demand				$   4,738,830		$   4,670,520	1.5
	Interest bearing demand				3,258,871		3,405,610	(4.3)
	Money market				1,770,859		1,831,683	(3.3)
	Savings deposits				2,695,437		2,679,053	0.6
	Certificates of deposit				1,105,305		1,211,008	(8.7)
		Total deposits			13,569,302		13,797,874	(1.7)
Federal Home Loan Bank borrowings					122,650		123,898	(1.0)
Other short-term borrowings					147,964		158,538	(6.7)
Subordinated debt and junior subordinated debt					280,910		280,743	0.1
		Total borrowings			551,524		563,179	(2.1)
Accrued interest payable					2,815		1,786	57.6
Other liabilities					208,032		193,860	7.3
Total liabilities					14,331,673		14,556,699	(1.5)
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	-
Common stock, $2.0833 par value; 100,000,000 shares authorized;
	68,081,306 shares issued;
	59,698,788 and 60,613,414 shares outstanding, respectively				141,834		141,834	-
Capital surplus					1,632,617		1,636,705	(0.2)
Retained earnings					1,018,209		998,315	2.0
Treasury stock (8,382,518 and 7,467,892 shares - at cost)					(291,337)		(261,012)	(11.6)
Accumulated other comprehensive loss					(176,061)		(111,312)	(58.2)
Deferred benefits for directors					(1,795)		(1,698)	(5.7)
Total Shareholders' Equity					2,467,951		2,547,316	(3.1)
Total Liabilities and Shareholders' Equity					$ 16,799,624		$ 17,104,015	(1.8)

 

 

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,
					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					$       744,261	0.74	%		$      696,967	0.09	%		$       951,588	0.39	%		$      736,387	0.09	%
Loans, net of unearned income (1)					9,932,744	3.89			10,641,970	3.99			9,823,024	3.89			10,765,483	4.03
Securities: (2)
Taxable					3,532,624	1.80			3,042,009	1.70			3,433,551	1.76			2,676,198	1.81
Tax-exempt (3)					792,878	3.01			599,980	3.34			761,304	3.03			590,144	3.40
Total securities					4,325,502	2.02			3,641,989	1.97			4,194,855	1.99			3,266,342	2.10
Other earning assets					13,296	3.82			28,702	4.95			14,365	3.81			30,958	5.45
Total earning assets (3)					15,015,803	3.20	%		15,009,628	3.32	%		14,983,832	3.14	%		14,799,170	3.41	%
Other assets					1,955,649				2,032,519				1,998,126				2,041,154
Total Assets					$ 16,971,452				$ 17,042,147				$ 16,981,958				$ 16,840,324
Liabilities and Shareholders' Equity
Interest bearing demand deposits					$   3,380,684	0.14	%		$   3,147,915	0.13	%		$   3,392,029	0.12	%		$   3,059,830	0.14	%
Money market accounts					1,770,342	0.09			1,774,556	0.12			1,788,430	0.08			1,750,194	0.13
Savings deposits					2,700,642	0.05			2,414,824	0.04			2,664,005	0.05			2,353,083	0.04
Certificates of deposit					1,162,392	0.39			1,519,590	0.53			1,208,243	0.40			1,551,692	0.57
Total interest bearing deposits					9,014,060	0.13			8,856,885	0.17			9,052,707	0.13			8,714,799	0.19
Federal Home Loan Bank borrowings					123,474	1.34			390,020	1.83			151,593	1.31			438,932	1.93
Repurchase agreements					146,119	0.13			130,171	0.12			151,115	0.13			160,753	0.20
Subordinated debt and junior subordinated debt					280,962	3.97			192,483	3.76			214,704	3.71			192,412	3.77
Total interest bearing liabilities (4)					9,564,615	0.26	%		9,569,559	0.31	%		9,570,119	0.23	%		9,506,896	0.34	%
Non-interest bearing demand deposits					4,712,466				4,474,784				4,644,982				4,338,546
Other liabilities					184,932				196,349				184,600				208,861
Shareholders' equity					2,509,439				2,801,455				2,582,257				2,786,021
Total Liabilities and Shareholders' Equity					$ 16,971,452				$ 17,042,147				$ 16,981,958				$ 16,840,324
Taxable equivalent net interest spread						2.94	%			3.01	%			2.91	%			3.07	%
Taxable equivalent net interest margin						3.03	%			3.12	%			2.99	%			3.19	%
(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 $2.5 million and $6.5 million for the three months ended June 30, 2022 and 2021, respectively, and were $6.6 million and $14.7 million for the six months ended June 30, 2022 and 2021, respectively.  As part of loan fees, PPP loan fees were $1.9 million and $6.0 million for the three months ended June 30, 2022 and 2021, respectively, and $5.1 million and $13.9 million for the six months ended June 30, 2022 and 2021, respectively.  Additionally, loan accretion included in interest income on loans acquired from prior acquisitions was $1.9 million and $3.8 million for the three months ended June 30, 2022 and 2021, respectively, and $4.5 million and $7.3 million for the six months ended June 30, 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 $0.3 million and $0.8 million for the three months ended June 30, 2022 and 2021, respectively, and $0.8 million and $1.9 million for the six months ended June 30, 2022 and 2021, 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				2022		2022		2021		2021		2021
	Loans, including fees			$     96,412		$       93,121		$       97,432		$     103,206		$     105,968
	Interest and dividends on securities:
		Taxable		15,825		14,112		12,934		13,481		12,900
		Tax-exempt		4,706		4,344		4,236		4,063		3,952
			Total interest and dividends on securities	20,531		18,456		17,170		17,544		16,852
	Other interest income			1,504		597		605		628		507
Total interest and dividend income				118,447		112,174		115,207		121,378		123,327
Interest expense
	Interest bearing demand deposits			1,153		811		810		815		1,009
	Money market deposits			383		321		315		350		551
	Savings deposits			330		264		261		244		261
	Certificates of deposit			1,116		1,273		1,501		1,726		2,026
			Total interest expense on deposits	2,982		2,669		2,887		3,135		3,847
	Federal Home Loan Bank borrowings			411		575		780		1,192		1,781
	Other short-term borrowings			48		48		35		33		40
	Subordinated debt and junior subordinated debt			2,778		1,171		1,178		1,743		1,804
			Total interest expense	6,219		4,463		4,880		6,103		7,472
Net interest income				112,228		107,711		110,327		115,275		115,855
	Provision for credit losses			(812)		(3,438)		(13,559)		(1,730)		(21,025)
Net interest income after provision for credit losses				113,040		111,149		123,886		117,005		136,880
Non-interest income
	Trust fees			6,527		7,835		7,441		7,289		7,148
	Service charges on deposits			6,487		6,090		6,592		6,050		4,876
	Electronic banking fees			5,154		5,345		4,465		5,427		5,060
	Net securities brokerage revenue			2,258		2,220		1,579		1,965		1,829
	Bank-owned life insurance			2,384		3,881		2,864		2,656		1,707
	Mortgage banking income			1,328		1,923		2,872		4,563		7,830
	Net securities (losses)/gains			(1,183)		(650)		372		(15)		477
	Net (loss)/gain on other real estate owned and other assets			(1,302)		(806)		(158)		785		4,014
	Other income			5,330		4,544		4,682		4,035		3,171
			Total non-interest income	26,983		30,382		30,709		32,755		36,112
Non-interest expense
	Salaries and wages			41,213		38,937		40,420		39,497		37,435
	Employee benefits			8,722		9,158		10,842		10,658		9,268
	Net occupancy			6,119		7,234		6,413		6,825		6,427
	Equipment and software			7,702		8,011		8,352		7,609		7,281
	Marketing			2,749		2,421		2,601		1,848		1,802
	FDIC insurance			1,937		1,522		1,460		1,227		181
	Amortization of intangible assets			2,579		2,598		2,834		2,854		2,873
	Restructuring and merger-related expense			52		1,593		177		4,467		1,222
	Other operating expenses			15,946		16,074		15,204		19,716		17,323
			Total non-interest expense	87,019		87,548		88,303		94,701		83,812
Income before provision for income taxes				53,004		53,983		66,292		55,059		89,180
	Provision for income taxes			10,256		9,859		12,144		10,651		18,592
Net Income				42,748		44,124		54,148		44,408		70,588
Preferred stock dividends				2,531		2,531		2,531		2,531		2,531
Net income available to common shareholders				$     40,217		$       41,593		$       51,617		$       41,877		$       68,057
Taxable equivalent net interest income				$  113,479		$  108,866		$  111,453		$  116,355		$  116,906
Per common share data
Net income per common share - basic				$          0.67		$           0.68		$           0.82		$           0.64		$           1.02
Net income per common share - diluted				0.67		0.68		0.82		0.64		1.01
Net income per common share - diluted, excluding certain items (1)(2)				0.67		0.70		0.82		0.70		1.03
Dividends declared				0.34		0.34		0.33		0.33		0.33
Book value (period end)				38.92		39.64		40.91		40.41		39.96
Tangible book value (period end) (1)				19.89		20.87		22.61		22.51		22.61
Average common shares outstanding - basic				60,036,103		61,445,399		63,045,061		64,931,764		66,894,398
Average common shares outstanding - diluted				60,185,207		61,593,365		63,183,411		65,065,848		67,066,592
Period end common shares outstanding				59,698,788		60,613,414		62,307,245		63,838,549		65,970,149
Period end preferred shares outstanding				150,000		150,000		150,000		150,000		150,000
Full time equivalent employees				2,509		2,456		2,462		2,425		2,459
(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				2022		2022		2021		2021		2021
Non-performing assets:
	Troubled debt restructurings - accruing			$      3,579		$     3,731		$     3,746		$     3,707		$     5,799
	Non-accrual loans:
		Troubled debt restructurings		2,120		1,348		1,547		1,615		1,664
		Other non-accrual loans		29,594		32,024		34,195		34,644		34,548
		Total non-accrual loans		31,714		33,372		35,742		36,259		36,212
		Total non-performing loans		35,293		37,103		39,488		39,966		42,011
	Other real estate and repossessed assets			31		87		-		293		773
		Total non-performing assets		$   35,324		$   37,190		$   39,488		$   40,259		$   42,784
Past due loans (1):
	Loans past due 30-89 days			$   31,388		$   28,322		$   27,152		$   32,682		$   21,233
	Loans past due 90 days or more			9,560		6,142		7,804		11,252		8,318
		Total past due loans		$   40,948		$   34,464		$   34,956		$   43,934		$   29,551
Criticized and classified loans (2):
	Criticized loans			$ 193,871		$ 234,143		$ 248,518		$ 290,281		$ 319,448
	Classified loans			126,257		123,837		116,013		127,022		136,927
		Total criticized and classified loans		$ 320,128		$ 357,980		$ 364,531		$ 417,303		$ 456,375
Loans past due 30-89 days / total portfolio loans (3)				0.31	%	0.29	%	0.28	%	0.33	%	0.21	%
Loans past due 90 days or more / total portfolio loans				0.09		0.06		0.08		0.11		0.08
Non-performing loans / total portfolio loans				0.35		0.38		0.41		0.40		0.41
Non-performing assets / total portfolio loans, other
	real estate and repossessed assets			0.35		0.38		0.41		0.41		0.41
Non-performing assets / total assets				0.21		0.22		0.23		0.24		0.25
Criticized and classified loans / total portfolio loans				3.14		3.68		3.75		4.21		4.41
Allowance for credit losses
Allowance for credit losses - loans				$ 117,403		$ 117,865		$ 121,622		$ 136,605		$ 140,730
Allowance for credit losses - loan commitments				7,718		8,050		7,775		7,290		5,766
Provision for credit losses				(812)		(3,438)		(13,559)		(1,730)		(21,025)
Net loan and deposit account overdraft charge-offs and recoveries				2		27		929		842		(689)
Annualized net loan charge-offs and recoveries / average loans				0.00	%	0.00	%	0.04	%	0.03	%	(0.03)	%
Allowance for credit losses - loans / total portfolio loans				1.15	%	1.21	%	1.25	%	1.38	%	1.36	%
Allowance for credit losses - loans / total portfolio loans excluding PPP loans				1.15	%	1.22	%	1.27	%	1.42	%	1.43	%
Allowance for credit losses - loans / non-performing loans				3.33	x	3.18	x	3.08	x	3.42	x	3.35	x
Allowance for credit losses - loans / non-performing loans and
	loans past due			1.54	x	1.65	x	1.63	x	1.63	x	1.97	x
				June 30,		Mar. 31,		Dec. 31,		Sept. 30,		June 30,
				2022		2022		2021		2021		2021
Capital ratios
Tier I leverage capital				9.51	%	9.67	%	10.02	%	10.10	%	10.42	%
Tier I risk-based capital				12.49		13.25		14.05		14.18		15.15
Total risk-based capital				15.40		16.32		15.91		16.38		17.68
Common equity tier 1 capital ratio (CET 1)				11.31		12.01		12.77		12.91		13.83
Average shareholders' equity to average assets				14.79		15.63		15.99		16.28		16.44
Tangible equity to tangible assets (4)				8.50		8.83		9.84		10.04		10.34
Tangible common equity to tangible assets (4)				7.58		7.92		8.92		9.12		9.43
(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 $26.7 million of PPP loans as of June 30, 2022.
(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)				2022		2022		2021		2021		2021		2022	2021
Return on average assets, excluding after-tax restructuring and merger-related expenses:
	Net income available to common shareholders			$         40,217		$        41,593		$        51,617		$        41,877		$        68,057		$         81,807	$      138,641
	Plus: after-tax restructuring and merger-related expenses  (1)			41		1,258		140		3,529		965		1,300	1,638
	Net income available to common shareholders excluding after-tax restructuring and merger-related expenses			40,258		42,851		51,757		45,406		69,022		83,107	140,279
	Average total assets			$ 16,971,452		$ 16,992,598		$ 16,947,662		$ 17,057,793		$ 17,042,147		$ 16,981,958	$ 16,840,324
Return on average assets, excluding after-tax restructuring and merger-related expenses (annualized)  (2)				0.95 %		1.02 %		1.21 %		1.06 %		1.62 %		0.99 %	1.68 %
Return on average equity, excluding after-tax restructuring and merger-related expenses:
	Net income available to common shareholders			$         40,217		$        41,593		$        51,617		$        41,877		$        68,057		$         81,807	$      138,641
	Plus: after-tax restructuring and merger-related expenses  (1)			41		1,258		140		3,529		965		1,300	1,638
	Net income available to common shareholders excluding after-tax restructuring and merger-related expenses			40,258		42,851		51,757		45,406		69,022		83,107	140,279
	Average total shareholders' equity			$   2,509,439		$   2,655,807		$   2,709,782		$   2,777,306		$   2,801,455		$   2,582,257	$   2,786,021
Return on average equity, excluding after-tax  restructuring and merger-related expenses (annualized)  (2)				6.43 %		6.54 %		7.58 %		6.49 %		9.88 %		6.49 %	10.15 %
Return on average tangible equity:
	Net income available to common shareholders			$         40,217		$        41,593		$        51,617		$        41,877		$        68,057		$         81,807	$      138,641
	Plus: amortization of intangibles (1)			2,037		2,052		2,239		2,255		2,270		4,091	4,558
	Net income available to common shareholders before amortization of intangibles			42,254		43,645		53,856		44,132		70,327		85,898	143,199
	Average total shareholders' equity			2,509,439		2,655,807		2,709,782		2,777,306		2,801,455		2,582,257	2,786,021
	Less: average goodwill and other intangibles, net of def. tax liability			(1,137,187)		(1,139,242)		(1,141,307)		(1,143,522)		(1,145,882)		(1,138,209)	(1,147,020)
	Average tangible equity			$   1,372,252		$   1,516,565		$   1,568,475		$   1,633,784		$   1,655,573		$   1,444,048	$   1,639,001
Return on average tangible equity (annualized)  (2)				12.35 %		11.67 %		13.62 %		10.72 %		17.04 %		12.00 %	17.62 %
	Average tangible common equity			$   1,227,768		$   1,372,081		$   1,423,991		$   1,489,300		$   1,511,089		$   1,299,564	$   1,494,517
Return on average tangible common equity (annualized)  (2)				13.80 %		12.90 %		15.00 %		11.76 %		18.67 %		13.33 %	19.32 %
Return on average tangible equity, excluding after-tax restructuring and merger-related expenses:
	Net income available to common shareholders			$         40,217		$        41,593		$        51,617		$        41,877		$        68,057		$         81,807	$      138,641
	Plus: after-tax restructuring and merger-related expenses  (1)			41		1,258		140		3,529		965		1,300	1,638
	Plus: amortization of intangibles  (1)			2,037		2,052		2,239		2,255		2,270		4,091	4,558
	Net income available to common shareholders before amortization of intangibles
	and excluding after-tax restructuring and merger-related expenses			42,295		44,903		53,996		47,661		71,292		87,198	144,837
	Average total shareholders' equity			2,509,439		2,655,807		2,709,782		2,777,306		2,801,455		2,582,257	2,786,021
	Less: average goodwill and other intangibles, net of def. tax liability			(1,137,187)		(1,139,242)		(1,141,307)		(1,143,522)		(1,145,882)		(1,138,209)	(1,147,020)
	Average tangible equity			$   1,372,252		$   1,516,565		$   1,568,475		$   1,633,784		$   1,655,573		$   1,444,048	$   1,639,001
Return on average tangible equity, excluding after-tax  restructuring and merger-related expenses (annualized)  (2)				12.36 %		12.01 %		13.66 %		11.57 %		17.27 %		12.18 %	17.82 %
	Average tangible common equity			$   1,227,768		$   1,372,081		$   1,423,991		$   1,489,300		$   1,511,089		$   1,299,564	$   1,494,517
Return on average tangible common equity, excluding after-tax restructuring and merger-related expenses (annualized)  (2)				13.82 %		13.27 %		15.04 %		12.70 %		18.92 %		13.53 %	19.54 %
Efficiency ratio:
	Non-interest expense			$         87,019		$        87,548		$        88,303		$        94,701		$        83,812		$       174,569	$      170,139
	Less: restructuring and merger-related expense			(52)		(1,593)		(177)		(4,467)		(1,222)		(1,646)	(2,074)
	Non-interest expense excluding restructuring and merger-related expense			86,967		85,955		88,126		90,234		82,590		172,923	168,065
	Net interest income on a fully taxable equivalent basis			113,479		108,866		111,453		116,355		116,906		222,343	234,423
	Non-interest income			26,983		30,382		30,709		32,755		36,112		57,365	69,320
	Net interest income on a fully taxable equivalent basis plus non-interest income			$       140,462		$      139,248		$      142,162		$      149,110		$      153,018		$       279,708	$      303,743
	Efficiency ratio			61.91 %		61.73 %		61.99 %		60.52 %		53.97 %		61.82 %	55.33 %
Net income available to common shareholders, excluding after-tax restructuring and merger-related expenses:
	Net income available to common shareholders			$         40,217		$        41,593		$        51,617		$        41,877		$        68,057		$         81,807	$      138,641
	Add: After-tax restructuring and merger-related expenses (1)			41		1,258		140		3,529		965		1,300	1,638
Net income available to common shareholders, excluding after-tax restructuring and merger-related expenses				$         40,258		$        42,851		$        51,757		$        45,406		$        69,022		$         83,107	$      140,279
Net income per common share - diluted, excluding after-tax restructuring and merger-related expenses:
	Net income per common share - diluted			$              0.67		$            0.68		$            0.82		$            0.64		$            1.01		$              1.34	$            2.06
	Add: After-tax restructuring and merger-related expenses per common share - diluted (1)			-		0.02		-		0.06		0.02		0.02	0.03
Net income per common share - diluted, excluding after-tax restructuring and merger-related expenses				$              0.67		$            0.70		$            0.82		$            0.70		$            1.03		$              1.36	$            2.09
				Period End
				June 30,		Mar. 31,		Dec. 31,		Sept. 30,		June 30,
				2022		2022		2021		2021		2021
Tangible book value per share:
	Total shareholders' equity			$   2,467,951		$   2,547,316		$   2,693,166		$   2,723,983		$   2,780,836
	Less:  goodwill and other intangible assets, net of def. tax liability			(1,136,020)		(1,138,057)		(1,140,111)		(1,142,350)		(1,144,604)
	Less: preferred shareholder's equity			(144,484)		(144,484)		(144,484)		(144,484)		(144,484)
	Tangible common equity			1,187,447		1,264,775		1,408,571		1,437,149		1,491,748
	Common shares outstanding			59,698,788		60,613,414		62,307,245		63,838,549		65,970,149
Tangible book value per share				$           19.89		$          20.87		$          22.61		$          22.51		$          22.61
Tangible common equity to tangible assets:
	Total shareholders' equity			$   2,467,951		$   2,547,316		$   2,693,166		$   2,723,983		$   2,780,836
	Less:  goodwill and other intangible assets, net of def. tax liability			(1,136,020)		(1,138,057)		(1,140,111)		(1,142,350)		(1,144,604)
	Tangible equity			1,331,931		1,409,259		1,553,055		1,581,633		1,636,232
	Less: preferred shareholder's equity			(144,484)		(144,484)		(144,484)		(144,484)		(144,484)
	Tangible common equity			1,187,447		1,264,775		1,408,571		1,437,149		1,491,748
	Total assets			16,799,624		17,104,015		16,927,125		16,892,111		16,966,867
	Less:  goodwill and other intangible assets, net of def. tax liability			(1,136,020)		(1,138,057)		(1,140,111)		(1,142,350)		(1,144,604)
	Tangible assets			$ 15,663,604		$ 15,965,958		$ 15,787,014		$ 15,749,761		$ 15,822,263
Tangible equity to tangible assets				8.50 %		8.83 %		9.84 %		10.04 %		10.34 %
Tangible common equity to tangible assets				7.58 %		7.92 %		8.92 %		9.12 %		9.43 %
(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)				2022		2022		2021		2021		2021		2022	2021
Pre-tax, pre-provision income:
	Income before provision for income taxes			$         53,004		$        53,983		$        66,292		$        55,059		$        89,180		$       106,984	$      180,497
	Add: provision for credit losses			(812)		(3,438)		(13,559)		(1,730)		(21,025)		(4,250)	(48,984)
Pre-tax, pre-provision income				$         52,192		$        50,545		$        52,733		$        53,329		$        68,155		$       102,734	$      131,513
Pre-tax, pre-provision income, excluding restructuring and merger-related expenses:
	Income before provision for income taxes			$         53,004		$        53,983		$        66,292		$        55,059		$        89,180		$       106,984	$      180,497
	Add: provision for credit losses			(812)		(3,438)		(13,559)		(1,730)		(21,025)		(4,250)	(48,984)
	Add: restructuring and merger-related expenses			52		1,593		177		4,467		1,222		1,646	2,074
Pre-tax, pre-provision income, excluding restructuring and merger-related expenses				$         52,244		$        52,138		$        52,910		$        57,796		$        69,377		$       104,380	$      133,587
Return on average assets, excluding certain items (1):
	Income before provision for income taxes			$         53,004		$        53,983		$        66,292		$        55,059		$        89,180		$       106,984	$      180,497
	Add: provision for credit losses			(812)		(3,438)		(13,559)		(1,730)		(21,025)		(4,250)	(48,984)
	Add: restructuring and merger-related expenses			52		1,593		177		4,467		1,222		1,646	2,074
Pre-tax, pre-provision income, excluding restructuring and merger-related expenses				52,244		52,138		52,910		57,796		69,377		104,380	133,587
	Average total assets			$ 16,971,452		$ 16,992,598		$ 16,947,662		$ 17,057,793		$ 17,042,147		$ 16,981,958	$ 16,840,324
Return on average assets, excluding certain items (annualized)  (1) (2)				1.23 %		1.24 %		1.24 %		1.34 %		1.63 %		1.24 %	1.60 %
Return on average equity, excluding certain items (1):
	Income before provision for income taxes			$         53,004		$        53,983		$        66,292		$        55,059		$        89,180		$       106,984	$      180,497
	Add: provision for credit losses			(812)		(3,438)		(13,559)		(1,730)		(21,025)		(4,250)	(48,984)
	Add: restructuring and merger-related expenses			52		1,593		177		4,467		1,222		1,646	2,074
Pre-tax, pre-provision income, excluding restructuring and merger-related expenses				52,244		52,138		52,910		57,796		69,377		104,380	133,587
	Average total shareholders' equity			$   2,509,439		$   2,655,807		$   2,709,782		$   2,777,306		$   2,801,455		$   2,582,257	$   2,786,021
Return on average equity, excluding certain items (annualized) (1) (2)				8.35 %		7.96 %		7.75 %		8.26 %		9.93 %		8.15 %	9.67 %
Return on average tangible equity, excluding certain items (1):
	Income before provision for income taxes			$         53,004		$        53,983		$        66,292		$        55,059		$        89,180		$       106,984	$      180,497
	Add: provision for credit losses			(812)		(3,438)		(13,559)		(1,730)		(21,025)		(4,250)	(48,984)
	Add: amortization of intangibles			2,579		2,598		2,834		2,854		2,873		5,178	5,769
	Add: restructuring and merger-related expenses			52		1,593		177		4,467		1,222		1,646	2,074
Income before provision, restructuring and merger-related expenses and amortization of intangibles				54,823		54,736		55,744		60,650		72,250		109,558	139,356
	Average total shareholders' equity			2,509,439		2,655,807		2,709,782		2,777,306		2,801,455		2,582,257	2,786,021
	Less: average goodwill and other intangibles, net of def. tax liability			(1,137,187)		(1,139,242)		(1,141,307)		(1,143,522)		(1,145,882)		(1,138,209)	(1,147,020)
	Average tangible equity			$   1,372,252		$   1,516,565		$   1,568,475		$   1,633,784		$   1,655,573		$   1,444,048	$   1,639,001
Return on average tangible equity, excluding certain items (annualized) (1) (2)				16.02 %		14.64 %		14.10 %		14.73 %		17.50 %		15.30 %	17.15 %
	Average tangible common equity			$   1,227,768		$   1,372,081		$   1,423,991		$   1,489,300		$   1,511,089		$   1,299,564	$   1,494,517
Return on average tangible common equity, excluding certain items (annualized) (1) (2)				17.91 %		16.18 %		15.53 %		16.16 %		19.18 %		17.00 %	18.80 %
(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.

 

 

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/wesbanco-announces-second-quarter-2022-financial-results-301593709.html

SOURCE WesBanco, Inc.

FAQ

What were WesBanco's earnings for Q2 2022?

WesBanco reported net income of $40.2 million and earnings per share of $0.67 for Q2 2022.

How did WesBanco's loan growth perform in Q2 2022?

WesBanco experienced a loan growth of 5.4% sequentially and 3.8% year-over-year.

What was the change in WesBanco's net income compared to Q2 2021?

WesBanco's net income decreased by 41% from $68.1 million in Q2 2021 to $40.2 million in Q2 2022.

How did non-interest income change in Q2 2022 for WesBanco?

Non-interest income for WesBanco fell by 25.3% year-over-year, down to $27 million.

What is WesBanco's stock symbol?

WesBanco's stock symbol is WSBC.