WesBanco Announces Second Quarter 2023 Financial Results

Generated solid earnings and loan growth; maintained strong capital levels; stable deposits

WHEELING, W.Va., July 25, 2023 /PRNewswire/ -- WesBanco, Inc. ("WesBanco") (Nasdaq: WSBC), a diversified, multi-state bank holding company, today announced net income and related earnings per share for the three months ended June 30, 2023.  Net income available to common shareholders for the second quarter of 2023 was $42.3 million, with diluted earnings per share of $0.71, compared to $40.2 million and $0.67 per diluted share, respectively, for the second quarter of 2022.  For the six months ended June 30, 2023, net income was $82.2 million, or $1.38 per diluted share, compared to $81.8 million, or $1.34 per diluted share, for the 2022 period.  As noted in the following table, net income available to common shareholders, excluding after-tax restructuring and merger-related expenses, for the six months ended June 30, 2023 was $84.7 million, or $1.43 per diluted share, as compared to $83.1 million, or $1.36 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,
			2023				2022					2023				2022
(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)			$      42,377		$       0.71		$      40,258		$       0.67			$      84,677		$       1.43		$      83,107		$       1.36
Less: After-tax restructuring and merger- related expenses			(28)		-		(41)		-			(2,519)		(0.05)		(1,300)		(0.02)
Net income available to common shareholders (GAAP)			$      42,349		$       0.71		$      40,217		$       0.67			$      82,158		$       1.38		$      81,807		$       1.34
(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, 2023:

• Generated solid growth in pre-tax, pre-provision income (excluding restructuring and merger-related expenses) of 9.2% year-over-year (non-GAAP)
• Total loan growth was 9.0% year-over-year and 8.0% annualized (when compared to December 31, 2022), reflecting the strength of our markets and lending teams
• Both period-end and average total deposits were flat compared to the quarter ending March 31, 2023, reflecting deposit gathering and retention efforts across retail and business customers
• Average loans to average deposits were 85.4%
• Key credit quality metrics such as non-performing assets, total past due loans, and net loan charge-offs, as percentages of total portfolio loans, have remained at low levels and favorable to peer bank averages, those with total assets between $10 billion and $25 billion (based upon the prior four quarters)
• Expanded Tennessee presence with the hiring of a team of commercial and industrial lenders in Chattanooga
• WesBanco remains well-capitalized with solid liquidity and a strong balance sheet with capacity to fund loan growth

"Our second quarter results demonstrate the continued strength of our franchise and successful execution of our strategic initiatives.  We delivered solid earnings and loan growth, and focused on maintaining our net interest margin," said Todd Clossin, President and Chief Executive Officer of WesBanco. "As I close my tenure as CEO, I believe WesBanco is well-positioned for ongoing success with strong market positions, diversified revenue generation capabilities, and distinct long-term advantages.  I am confident these will be the foundation for further growth and expansion through our incoming CEO Jeff Jackson's strategic vision and leadership."

Jeffrey H. Jackson, Senior Executive Vice President and Chief Operating Officer added, "Our solid earnings growth during the second quarter was supported by year-to-date annualized loan growth of 8 percent.  This loan growth was driven by our strong markets and lending teams and underpinned by our strategic loan production office and lender hiring initiatives.  Additionally, our commercial and retail teams concerted efforts enabled us to maintain deposit levels despite industry headwinds.  We remain focused on disciplined expense management while making appropriate investments that ensure a safe and sound financial institution with attractive long-term growth prospects.  As I assume the CEO role on August 1^st, I look forward to building on the impressive foundation Todd and the team have established to deliver continued growth and success for our customers, shareholders, and employees."

Balance Sheet

Loan growth for the second quarter of 2023 continues to reflect strong performance by our commercial and consumer lending teams.  As of June 30, 2023, total portfolio loans were $11.1 billion, which increased 9.0% year-over-year driven by strong growth across all markets and the closing of loans from the commercial pipeline, which totaled $0.7 billion at June 30, 2023.  Reflecting our strategic loan production office and lender hiring initiatives, commercial and industrial loans of $1.6 billion, as of June 30, 2023, increased 10.2% annualized quarter-over-quarter.

Total deposits, as of June 30, 2023, were $12.9 billion, consistent with the level reported at March 31, 2023, reflecting the benefit of deposit gathering and retention efforts by our retail and commercial teams.  In addition, brokered deposits increased $60 million sequentially.  On a year-over-year basis, the decrease in total deposits reflects the impact of interest rate and inflationary pressures and rising costs across the economy, combined with Federal Reserve's tightening actions to control inflation, which has resulted in industry-wide deposit contraction.  While there has been some mix shift in the composition of total deposits, total demand deposits continue to represent 59% of total deposits, with the non-interest bearing component representing 33%, which is consistent with the percentage range since early 2020.  

Credit Quality

As of June 30, 2023, total loans past due, non-performing loans, and non-performing assets as percentages of the loan portfolio and total assets have remained low, from a historical perspective, and within a consistent range throughout the last five quarters.  Total loans past due as a percent of the loan portfolio decreased 19 basis points from the prior year, while criticized and classified loans as a percent of the loan portfolio decreased 146 basis points to 1.68%.  During the second quarter of 2023, we recorded a provision for credit losses of $3.0 million, as compared to a release of provision in the prior year period of $0.8 million.  The current recorded provision was primarily driven by loan growth and adjustments in regional macroeconomic factors and loan concentrations.  The allowance for credit losses to total portfolio loans at June 30, 2023 was $120.2 million, or 1.08% of total loans.  Excluded from the allowance for credit losses and related coverage ratio are fair market value adjustments on previously acquired loans representing 0.14% of total loans.

Net Interest Margin and Income

The net interest margin of 3.18% for the second quarter of 2023 increased 15 basis points year-over-year, which reflects the 500 basis point increase in the federal fund rate since March 2022, and the subsequent increase in funding costs, as well as the deployment of excess cash into higher-yielding loans.  The net interest margin decreased 18 basis points from the first quarter of 2023 primarily due to higher funding costs from increasing deposit costs and higher cost wholesale borrowings to support loan growth.  Total deposit funding costs of 157 basis points for the second quarter of 2023 increased 144 basis points year-over-year and 57 quarter-over-quarter.  When including non-interest deposits, total deposit funding costs were 103 basis points, up 94 basis points year-over-year and 38 basis points sequentially.  Accretion from acquisitions benefited the second quarter net interest margin by 3 basis points, as compared to 6 basis points in the prior year period.

Net interest income of $121.6 million increased $9.3 million, or 8.3%, during the second quarter of 2023, as compared to the same quarter of 2022, reflecting loan growth and the impact of rising rates on loan and securities yields and funding costs.  For the six months ended June 30, 2023, net interest income of $245.9 million increased $26.0 million, or 11.8%, primarily due to the reasons discussed for the three-month period comparison.

Non-Interest Income

For the second quarter of 2023, non-interest income of $31.8 million increased $4.9 million, or 18.0%, from the second quarter of 2022, driven primarily by higher commercial swap fees, as well as, net gains on other assets and net securities gains, both of which reported losses in the prior year period.  New commercial swap fees, which are recorded in other income, increased $1.6 million from the prior year period to $2.4 million, while associated fair market value adjustments totaled $0.2 million during the second quarter, as compared to $1.1 million last year.  Net gains on other assets of $0.9 million increased $2.2 million year-over-year primarily due to a $1.1 million recovery of an asset previously written-off, as well as, a net loss on other assets of $1.3 million in the prior year period from the change in the fair value of an underlying equity investment, which was subsequently sold.  Net securities gains of $0.2 million increased $1.4 million year-over-year due to market fluctuations from equity securities in the deferred compensation plan. 

Primarily reflecting the items discussed above, as well as lower mortgage banking and bank-owned life insurance income, non-interest income, for the six months ended June 30, 2023, of $59.5 million increased $2.1 million, or 3.7%.  Mortgage banking income decreased $2.2 million from the prior year to $1.0 million due to a reduction in residential mortgage originations, primarily driven by the higher interest rate environment.  Bank-owned life insurance of $5.1 million decreased $1.1 million year-over-year due to higher death benefits during 2022.

Non-Interest Expense

Excluding restructuring and merger-related expenses, non-interest expense for the three months ended June 30, 2023 totaled $96.4 million, reflecting increased salaries and wages, benefits, FDIC insurance, and equipment and software expense.  Salaries and wages increased $3.3 million, or 7.9%, compared to the prior year period due to higher salary expense related to higher staffing levels, mainly revenue-producing positions, and merit increases.  Employee benefits increased $2.8 million from last year due to a $1.2 million credit in the prior year period related to the deferred compensation plan, higher staffing levels, and higher health insurance contributions.  Equipment and software expense increased $1.1 million due to the planned upgrade to one-third of our ATM fleet with the latest technology and general inflationary cost increases for existing service agreements.  FDIC insurance expense increased $0.9 million year-over-year due to increase in the minimum rate for all banks.

Excluding restructuring and merger-related expenses, non-interest expense during the first half of 2023 of $189.4 million increased $16.4 million, or 9.5%, compared to the prior year period, due primarily to higher salaries and wages, employee benefits, FDIC insurance, and equipment and software expense as described above.

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, 2023, Tier I leverage was 9.78%, Tier I risk-based capital ratio was 12.12%, common equity Tier 1 capital ratio ("CET 1") was 11.03%, and total risk-based capital was 14.83%.  In addition, the tangible common equity to tangible assets ratio was 7.35%.

During the second quarter, WesBanco repurchased 0.1 million shares of its outstanding common stock on the open market at a total cost of $2.2 million, or $22.02 per share.  As of June 30, 2023, approximately 1.0 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 2023 at 10:00 a.m. ET on Wednesday, July 26, 2023. Interested parties can access the live webcast of the conference call through the Investor Relations section of the Company's website, www.wesbanco.com.  Participants can also listen to the conference call by dialing 888-347-6607, 855-669-9657 for Canadian callers, or 412-902-4290 for international callers, and asking to be joined into the WesBanco call.  Please log in or dial in at least 10 minutes prior to the start time to ensure a connection.

A replay of the conference call will be available by dialing 877-344-7529, 855-669-9658 for Canadian callers, or 412-317-0088 for international callers, and providing the access code of 2737150.  The replay will begin at approximately 12:00 p.m. ET on July 26, 2023 and end at 12 a.m. ET on August 9, 2023.  An archive of the webcast will be available for one year on the Investor Relations section of the Company's website (www.wesbanco.com).

Forward-Looking Statements

Forward-looking statements in this report relating to WesBanco's plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The information contained in this report should be read in conjunction with WesBanco's Form 10-K for the year ended December 31, 2022 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, 2023, which are available at the SEC's website, www.sec.gov or at WesBanco's website, www.WesBanco.com. Investors are cautioned that forward-looking statements, which are not historical fact, involve risks and uncertainties, including those detailed in WesBanco's most recent Annual Report on Form 10-K filed with the SEC under "Risk Factors" in Part I, Item 1A. Such statements are subject to important factors that could cause actual results to differ materially from those contemplated by such statements, including, without limitation, the effects of changing regional and national economic conditions, changes in interest rates, spreads on earning assets and interest-bearing liabilities, and associated interest rate sensitivity; sources of liquidity available to WesBanco and its related subsidiary operations; potential future credit losses and the credit risk of commercial, real estate, and consumer loan customers and their borrowing activities; actions of the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Consumer Financial Protection Bureau, the SEC, the Financial Institution Regulatory Authority, the Municipal Securities Rulemaking Board, the Securities Investors Protection Corporation, and other regulatory bodies; potential legislative and federal and state regulatory actions and reform, including, without limitation, the impact of the implementation of the Dodd-Frank Act; adverse decisions of federal and state courts; fraud, scams and schemes of third parties; cyber-security breaches; competitive conditions in the financial services industry; rapidly changing technology affecting financial services; marketability of debt instruments and corresponding impact on fair value adjustments; and/or other external developments materially impacting WesBanco's operational and financial performance. WesBanco does not assume any duty to update forward-looking statements.

Non-GAAP Financial Measures

In addition to the results of operations presented in accordance with Generally Accepted Accounting Principles (GAAP), WesBanco's management uses, and this presentation contains or references, certain non-GAAP financial measures, such as pre-tax pre-provision income, tangible common equity/tangible assets; net income excluding after-tax restructuring and merger-related expenses; efficiency ratio; return on average assets; and return on average tangible equity. WesBanco believes these financial measures provide information useful to investors in understanding our operational performance and business and performance trends which facilitate comparisons with the performance of others in the financial services industry. Although WesBanco believes that these non-GAAP financial measures enhance investors' understanding of WesBanco's business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. The non-GAAP financial measures contained therein should be read in conjunction with the audited financial statements and analysis as presented in the Annual Report on Form 10-K as well as the unaudited financial statements and analyses as presented in the Quarterly Reports on Forms 10-Q for WesBanco and its subsidiaries, as well as other filings that the company has made with the SEC.

About WesBanco, Inc.

Founded in 1870, Wesbanco, Inc. 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. The company's banking subsidiary, Wesbanco Bank, Inc., operates more than 190 financial centers in the states of Indiana, Kentucky, Maryland, Ohio, Pennsylvania, and West Virginia. 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, the company provides trust, wealth management, securities brokerage, and private banking services through its century-old Trust and Investment Services department, with approximately $5.1 billion of assets under management (as of June 30, 2023). The company also offers insurance and brokerage services through its affiliates and subsidiaries. Learn more at www.wesbanco.com and follow us on Facebook, LinkedIn and Twitter.

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				2023		2022		% Change		2023		2022		% Change
	Loans, including fees			$        145,741		$            96,412		51.2		$        279,147		$          189,532		47.3
	Interest and dividends on securities:
		Taxable		18,483		15,825		16.8		37,569		29,937		25.5
		Tax-exempt		4,723		4,706		0.4		9,513		9,049		5.1
			Total interest and dividends on securities	23,206		20,531		13.0		47,082		38,986		20.8
	Other interest income			7,108		1,504		372.6		10,380		2,103		393.6
Total interest and dividend income				176,055		118,447		48.6		336,609		230,621		46.0
Interest expense
	Interest bearing demand deposits			17,203		1,153		NM		28,309		1,965		NM
	Money market deposits			7,220		383		NM		11,472		704		NM
	Savings deposits			5,860		330		NM		9,860		595		NM
	Certificates of deposit			2,906		1,116		160.4		4,109		2,389		72.0
			Total interest expense on deposits	33,189		2,982		NM		53,750		5,653		850.8
	Federal Home Loan Bank borrowings			16,713		411		NM		28,013		986		NM
	Other short-term borrowings			492		48		925.0		909		96		846.9
	Subordinated debt and junior subordinated debt			4,094		2,778		47.4		8,039		3,948		103.6
			Total interest expense	54,488		6,219		776.2		90,711		10,683		749.1
Net interest income				121,567		112,228		8.3		245,898		219,938		11.8
	Provision for credit losses			3,028		(812)		472.9		6,605		(4,250)		255.4
Net interest income after provision for credit losses				118,539		113,040		4.9		239,293		224,188		6.7
Non-interest income
	Trust fees			6,918		6,527		6.0		14,412		14,362		0.3
	Service charges on deposits			6,232		6,487		(3.9)		12,401		12,577		(1.4)
	Electronic banking fees			5,010		5,154		(2.8)		9,615		10,499		(8.4)
	Net securities brokerage revenue			2,523		2,258		11.7		5,098		4,478		13.8
	Bank-owned life insurance			3,189		2,384		33.8		5,149		6,264		(17.8)
	Mortgage banking income			601		1,328		(54.7)		1,027		3,251		(68.4)
	Net securities gains/(losses)			205		(1,183)		117.3		350		(1,832)		119.1
	Net gain/(loss) on other real estate owned and other assets			871		(1,302)		166.9		1,104		(2,108)		152.4
	Other income			6,292		5,330		18.0		10,337		9,874		4.7
			Total non-interest income	31,841		26,983		18.0		59,493		57,365		3.7
Non-interest expense
	Salaries and wages			44,471		41,213		7.9		86,422		80,150		7.8
	Employee benefits			11,511		8,722		32.0		23,570		17,880		31.8
	Net occupancy			6,132		6,119		0.2		12,775		13,354		(4.3)
	Equipment and software			8,823		7,702		14.6		17,885		15,713		13.8
	Marketing			2,763		2,749		0.5		5,088		5,170		(1.6)
	FDIC insurance			2,871		1,937		48.2		5,755		3,459		66.4
	Amortization of intangible assets			2,282		2,579		(11.5)		4,583		5,178		(11.5)
	Restructuring and merger-related expense			35		52		(32.7)		3,188		1,646		93.7
	Other operating expenses			17,549		15,946		10.1		33,294		32,019		4.0
			Total non-interest expense	96,437		87,019		10.8		192,560		174,569		10.3
Income before provision for income taxes				53,943		53,004		1.8		106,226		106,984		(0.7)
	Provision for income taxes			9,063		10,256		(11.6)		19,005		20,114		(5.5)
Net Income				44,880		42,748		5.0		87,221		86,870		0.4
Preferred stock dividends				2,531		2,531		-		5,063		5,063		-
Net income available to common shareholders				$          42,349		$            40,217		5.3		$          82,158		$            81,807		0.4
Taxable equivalent net interest income				$       122,822		$       113,479		8.2		$       248,427		$       222,343		11.7
Per common share data
Net income per common share - basic				$               0.71		$                0.67		6.0		$               1.39		$                1.35		3.0
Net income per common share - diluted				0.71		0.67		6.0		1.38		1.34		3.0
Net income per common share - diluted, excluding certain items (1)(2)				0.71		0.67		6.0		1.43		1.36		5.1
Dividends declared				0.35		0.34		2.9		0.70		0.68		2.9
Book value (period end)				39.10		38.92		0.5		39.10		38.92		0.5
Tangible book value (period end) (1)				20.08		19.89		1.0		20.08		19.89		1.0
Average common shares outstanding - basic				59,263,949		60,036,103		(1.3)		59,240,958		60,736,858		(2.5)
Average common shares outstanding - diluted				59,385,847		60,185,207		(1.3)		59,389,314		60,899,270		(2.5)
Period end common shares outstanding				59,355,062		59,698,788		(0.6)		59,355,062		59,698,788		(0.6)
Period end preferred shares outstanding				150,000		150,000		-		150,000		150,000		-
(1) See non-GAAP financial measures for additional information relating to the calculation of this item.
(2) Certain items excluded from the calculation consist of after-tax restructuring and merger-related expenses.
NM = Not Meaningful

 

 

WESBANCO, INC.
Consolidated Selected Financial Highlights																	Page 6
(unaudited, dollars in thousands)
Selected ratios
						For the Six Months Ended
						June 30,
						2023		2022		% Change
Return on average assets						0.97	%	0.97	%	-	%
Return on average assets, excluding
after-tax restructuring and merger-related expenses (1)						1.00		0.99		1.01
Return on average equity						6.69		6.39		4.69
Return on average equity, excluding
after-tax restructuring and merger-related expenses (1)						6.90		6.49		6.32
Return on average tangible equity (1)						12.86		12.00		7.17
Return on average tangible equity, excluding
after-tax restructuring and merger-related expenses (1)						13.23		12.18		8.62
Return on average tangible common equity (1)						14.40		13.33		8.03
Return on average tangible common equity, excluding
after-tax restructuring and merger-related expenses (1)						14.82		13.53		9.53
Yield on earning assets (2)						4.46		3.14		42.04
Cost of interest bearing liabilities						1.84		0.23		700.00
Net interest spread (2)						2.62		2.91		(9.97)
Net interest margin (2)						3.27		2.99		9.36
Efficiency (1) (2)						61.50		61.82		(0.52)
Average loans to average deposits						84.46		71.71		17.78
Annualized net loan charge-offs/average loans						0.05		0.00		100.00
Effective income tax rate						17.89		18.80		(4.84)
						For the Three Months Ended
						June 30,		Mar. 31,		Dec. 31,		Sept. 30,		June 30,
						2023		2023		2022		2022		2022
Return on average assets						0.98	%	0.95	%	1.18	%	1.19	%	0.95	%
Return on average assets, excluding
after-tax restructuring and merger-related expenses (1)						0.98		1.01		1.18		1.19		0.95
Return on average equity						6.81		6.57		8.18		8.05		6.43
Return on average equity, excluding
after-tax restructuring and merger-related expenses (1)						6.82		6.98		8.18		8.06		6.43
Return on average tangible equity (1)						12.98		12.72		16.05		15.39		12.35
Return on average tangible equity, excluding
after-tax restructuring and merger-related expenses (1)						12.99		13.48		16.05		15.41		12.36
Return on average tangible common equity (1)						14.52		14.28		18.09		17.23		13.80
Return on average tangible common equity, excluding
after-tax restructuring and merger-related expenses (1)						14.53		15.13		18.10		17.25		13.82
Yield on earning assets (2)						4.59		4.32		4.00		3.59		3.20
Cost of interest bearing liabilities						2.15		1.52		0.82		0.41		0.26
Net interest spread (2)						2.44		2.80		3.18		3.18		2.94
Net interest margin (2)						3.18		3.36		3.49		3.33		3.03
Efficiency (1) (2)						62.33		60.66		56.91		58.13		61.91
Average loans to average deposits						85.44		83.46		78.43		75.01		72.36
Annualized net loan charge-offs and recoveries /average loans						0.02		0.07		0.02		0.04		0.00
Effective income tax rate						16.80		19.02		18.51		18.85		19.35
Trust assets, market value at period end						$   5,127,265		$      5,026,631		$      4,878,479		$      4,622,878		$      4,803,043
(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, 2022
Assets					2023		2022		% Change	2022	to June 30, 2023
Cash and due from banks					$        178,057		$          186,534		(4.5)	$             166,182	7.1
Due from banks - interest bearing					384,261		263,475		45.8	242,229	58.6
Securities:
	Equity securities, at fair value				11,948		11,413		4.7	11,506	3.8
	Available-for-sale debt securities, at fair value				2,329,222		2,884,651		(19.3)	2,529,140	(7.9)
	Held-to-maturity debt securities (fair values of $1,072,229; $1,153,594
	and $1,084,390, respectively)				1,224,470		1,281,295		(4.4)	1,248,629	(1.9)
		Allowance for credit losses, held-to-maturity debt securities			(193)		(265)		27.2	(220)	12.3
	Net held-to-maturity debt securities				1,224,277		1,281,030		(4.4)	1,248,409	(1.9)
		Total securities			3,565,447		4,177,094		(14.6)	3,789,055	(5.9)
Loans held for sale					28,970		17,560		65.0	8,249	251.2
Portfolio loans:
	Commercial real estate				6,295,467		5,852,564		7.6	6,061,344	3.9
	Commercial and industrial				1,558,491		1,549,768		0.6	1,579,395	(1.3)
	Residential real estate				2,341,928		1,907,875		22.8	2,140,584	9.4
	Home equity				701,824		597,845		17.4	695,065	1.0
	Consumer				232,254		300,637		(22.7)	226,340	2.6
Total portfolio loans, net of unearned income					11,129,964		10,208,689		9.0	10,702,728	4.0
Allowance for credit losses - loans					(120,166)		(117,403)		(2.4)	(117,790)	(2.0)
		Net portfolio loans			11,009,798		10,091,286		9.1	10,584,938	4.0
Premises and equipment, net					219,934		216,293		1.7	220,892	(0.4)
Accrued interest receivable					69,773		61,918		12.7	68,522	1.8
Goodwill and other intangible assets, net					1,136,773		1,146,456		(0.8)	1,141,355	(0.4)
Bank-owned life insurance					355,204		348,807		1.8	352,361	0.8
Other assets					408,737		290,201		40.8	358,122	14.1
Total Assets					$  17,356,954		$     16,799,624		3.3	$        16,931,905	2.5
Liabilities
Deposits:
	Non-interest bearing demand				$     4,286,235		$       4,738,830		(9.6)	$          4,700,438	(8.8)
	Interest bearing demand				3,273,745		3,258,871		0.5	3,119,807	4.9
	Money market				1,685,667		1,770,859		(4.8)	1,684,023	0.1
	Savings deposits				2,655,680		2,695,437		(1.5)	2,741,004	(3.1)
	Certificates of deposit				960,107		1,105,305		(13.1)	885,818	8.4
		Total deposits			12,861,434		13,569,302		(5.2)	13,131,090	(2.1)
Federal Home Loan Bank borrowings					1,380,000		122,650		NM	705,000	95.7
Other short-term borrowings					101,286		147,964		(31.5)	135,069	(25.0)
Subordinated debt and junior subordinated debt					281,854		280,910		0.3	281,404	0.2
		Total borrowings			1,763,140		551,524		219.7	1,121,473	57.2
Accrued interest payable					8,869		2,815		215.1	4,593	93.1
Other liabilities					258,513		208,032		24.3	248,087	4.2
Total Liabilities					14,891,956		14,331,673		3.9	14,505,243	2.7
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; 59,355,062, 59,698,788 and 59,198,963
	shares outstanding, respectively				141,834		141,834		-	141,834	-
Capital surplus					1,630,963		1,632,617		(0.1)	1,635,877	(0.3)
Retained earnings					1,118,135		1,018,209		9.8	1,077,675	3.8
Treasury stock (8,726,244,  8,382,518 and 8,882,343 shares - at cost, respectively)					(303,770)		(291,337)		(4.3)	(308,964)	1.7
Accumulated other comprehensive loss					(264,627)		(176,061)		(50.3)	(262,416)	(0.8)
Deferred benefits for directors					(2,021)		(1,795)		(12.6)	(1,828)	(10.6)
Total Shareholders' Equity					2,464,998		2,467,951		(0.1)	2,426,662	1.6
Total Liabilities and Shareholders' Equity					$  17,356,954		$     16,799,624		3.3	$        16,931,905	2.5
NM = Not Meaningful

 

WESBANCO, INC.
Consolidated Selected Financial Highlights									Page 8
(unaudited, dollars in thousands, except shares)
Balance sheet					June 30,		March 31,
Assets					2023		2023		% Change
Cash and due from banks					$       178,057		$         152,756		16.6
Due from banks - interest bearing					384,261		444,747		(13.6)
Securities:
	Equity securities, at fair value				11,948		11,843		0.9
	Available-for-sale debt securities, at fair value				2,329,222		2,465,996		(5.5)
	Held-to-maturity debt securities (fair values of $1,072,229;
	and $1,107,685, respectively)				1,224,470		1,239,247		(1.2)
		Allowance for credit losses, held-to-maturity debt securities			(193)		(212)		9.0
	Net held-to-maturity debt securities				1,224,277		1,239,035		(1.2)
		Total securities			3,565,447		3,716,874		(4.1)
Loans held for sale					28,970		12,722		127.7
Portfolio loans:
	Commercial real estate				6,295,467		6,197,844		1.6
	Commercial and industrial				1,558,491		1,519,808		2.5
	Residential real estate				2,341,928		2,251,423		4.0
	Home equity				701,824		692,001		1.4
	Consumer				232,254		227,612		2.0
Total portfolio loans, net of unearned income					11,129,964		10,888,688		2.2
Allowance for credit losses - loans					(120,166)		(118,698)		(1.2)
		Net portfolio loans			11,009,798		10,769,990		2.2
Premises and equipment, net					219,934		224,940		(2.2)
Accrued interest receivable					69,773		69,232		0.8
Goodwill and other intangible assets, net					1,136,773		1,139,054		(0.2)
Bank-owned life insurance					355,204		354,320		0.2
Other assets					408,737		389,991		4.8
Total Assets					$ 17,356,954		$    17,274,626		0.5
Liabilities
Deposits:
	Non-interest bearing demand				$    4,286,235		$      4,478,954		(4.3)
	Interest bearing demand				3,273,745		3,107,112		5.4
	Money market				1,685,667		1,618,204		4.2
	Savings deposits				2,655,680		2,784,780		(4.6)
	Certificates of deposit				960,107		884,146		8.6
		Total deposits			12,861,434		12,873,196		(0.1)
Federal Home Loan Bank borrowings					1,380,000		1,280,000		7.8
Other short-term borrowings					101,286		111,176		(8.9)
Subordinated debt and junior subordinated debt					281,854		281,629		0.1
		Total borrowings			1,763,140		1,672,805		5.4
Accrued interest payable					8,869		7,669		15.6
Other liabilities					258,513		245,499		5.3
Total Liabilities					14,891,956		14,799,169		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, respectively				144,484		144,484		-
Common stock, $2.0833 par value; 100,000,000 shares authorized;
	68,081,306 shares issued; 59,355,062 and 59,246,569
	shares outstanding, respectively				141,834		141,834		-
Capital surplus					1,630,963		1,636,061		(0.3)
Retained earnings					1,118,135		1,096,924		1.9
Treasury stock (8,726,244 and 8,834,737 shares - at cost, respectively)					(303,770)		(307,507)		1.2
Accumulated other comprehensive loss					(264,627)		(234,399)		(12.9)
Deferred benefits for directors					(2,021)		(1,940)		(4.2)
Total Shareholders' Equity					2,464,998		2,475,457		(0.4)
Total Liabilities and Shareholders' Equity					$ 17,356,954		$    17,274,626		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,
					2023				2022				2023				2022
					Average	Average			Average	Average			Average	Average			Average	Average
Assets					Balance	Rate			Balance	Rate			Balance	Rate			Balance	Rate
Due from banks - interest bearing					$        438,604	5.71	%		$       744,261	0.74	%		$        359,466	5.16	%		$          951,588	0.39	%
Loans, net of unearned income (1)					11,009,093	5.31			9,932,744	3.89			10,880,328	5.17			9,823,024	3.89
Securities: (2)
Taxable					3,198,838	2.32			3,532,624	1.80			3,250,174	2.33			3,433,551	1.76
Tax-exempt (3)					786,128	3.05			792,878	3.01			793,425	3.06			761,304	3.03
Total securities					3,984,966	2.46			4,325,502	2.02			4,043,599	2.47			4,194,855	1.99
Other earning assets					61,613	5.64			13,296	3.82			53,789	4.44			14,365	3.81
Total earning assets (3)					15,494,276	4.59	%		15,015,803	3.20	%		15,337,182	4.46	%		14,983,832	3.14	%
Other assets					1,800,070				1,955,649				1,796,162				1,998,126
Total Assets					$  17,294,346				$  16,971,452				$  17,133,344				$     16,981,958
Liabilities and Shareholders' Equity
Interest bearing demand deposits					$     3,228,799	2.14	%		$    3,380,684	0.14	%		$     3,129,921	1.82	%		$       3,392,029	0.12	%
Money market accounts					1,635,939	1.77			1,770,342	0.09			1,634,347	1.42			1,788,430	0.08
Savings deposits					2,729,210	0.86			2,700,642	0.05			2,751,850	0.72			2,664,005	0.05
Certificates of deposit					912,144	1.28			1,162,392	0.39			887,560	0.93			1,208,243	0.40
Total interest bearing deposits					8,506,092	1.57			9,014,060	0.13			8,403,678	1.29			9,052,707	0.13
Federal Home Loan Bank borrowings					1,288,242	5.20			123,474	1.34			1,130,000	5.00			151,593	1.31
Repurchase agreements					105,266	1.87			146,119	0.13			118,155	1.55			151,115	0.13
Subordinated debt and junior subordinated debt					281,715	5.83			280,962	3.97			281,600	5.76			214,704	3.71
Total interest bearing liabilities (4)					10,181,315	2.15	%		9,564,615	0.26	%		9,933,433	1.84	%		9,570,119	0.23	%
Non-interest bearing demand deposits					4,379,345				4,712,466				4,479,200				4,644,982
Other liabilities					240,590				184,932				245,033				184,600
Shareholders' equity					2,493,096				2,509,439				2,475,678				2,582,257
Total Liabilities and Shareholders' Equity					$  17,294,346				$  16,971,452				$  17,133,344				$     16,981,958
Taxable equivalent net interest spread						2.44	%			2.94	%			2.62	%			2.91	%
Taxable equivalent net interest margin						3.18	%			3.03	%			3.27	%			2.99	%
(1) Gross of allowance for credit losses and net of unearned income.  Includes non-accrual and loans held for sale.  Loan fees included in interest income on loans were $0.7 million and $2.5 million for the three months ended June 30, 2023 and 2022, respectively, and were $1.1 million and $6.6 million for the six months ended June 30, 2023 and 2022.   Additionally, loan accretion included in interest income on loans acquired from prior acquisitions was $1.2 million and $1.9 million for the three months ended June 30, 2023 and 2022, respectively, and $2.5 million and $4.5 million for the six months ended June 30, 2023 and 2022, respectively.
(2) Average yields on available-for-sale debt 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 $0.1 million and $0.3 million for the three months ended June 30, 2023 and 2022, respectively, and $0.3 million and $0.7 million for the six months ended June 30, 2023 and 2022, 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,		March 31,		Dec. 31,		Sept. 30,		June 30,
Interest and dividend income				2023		2023		2022		2022		2022
	Loans, including fees			$        145,741		$          133,406		$          123,307		$          109,562		$            96,412
	Interest and dividends on securities:
		Taxable		18,483		19,086		18,655		17,531		15,825
		Tax-exempt		4,723		4,790		4,853		4,916		4,706
			Total interest and dividends on securities	23,206		23,876		23,508		22,447		20,531
	Other interest income			7,108		3,273		2,103		2,108		1,504
Total interest and dividend income				176,055		160,555		148,918		134,117		118,447
Interest expense
	Interest bearing demand deposits			17,203		11,106		7,264		2,953		1,153
	Money market deposits			7,220		4,252		1,890		968		383
	Savings deposits			5,860		4,000		2,454		1,067		330
	Certificates of deposit			2,906		1,203		742		958		1,116
			Total interest expense on deposits	33,189		20,561		12,350		5,946		2,982
	Federal Home Loan Bank borrowings			16,713		11,300		2,634		348		411
	Other short-term borrowings			492		418		324		147		48
	Subordinated debt and junior subordinated debt			4,094		3,944		3,736		3,175		2,778
			Total interest expense	54,488		36,223		19,044		9,616		6,219
Net interest income				121,567		124,332		129,874		124,501		112,228
	Provision for credit losses			3,028		3,577		3,123		(535)		(812)
Net interest income after provision for credit losses				118,539		120,755		126,751		125,036		113,040
Non-interest income
	Trust fees			6,918		7,494		6,672		6,517		6,527
	Service charges on deposits			6,232		6,170		6,762		6,942		6,487
	Electronic banking fees			5,010		4,605		4,695		4,808		5,154
	Net securities brokerage revenue			2,523		2,576		2,556		2,491		2,258
	Bank-owned life insurance			3,189		1,959		2,464		1,999		2,384
	Mortgage banking income			601		426		621		1,257		1,328
	Net securities gains/(losses)			205		145		(600)		656		(1,183)
	Net gain/(loss) on other real estate owned and other assets			871		232		550		2,040		(1,302)
	Other income			6,292		4,046		4,050		5,546		5,330
			Total non-interest income	31,841		27,653		27,770		32,256		26,983
Non-interest expense
	Salaries and wages			44,471		41,952		42,606		44,271		41,213
	Employee benefits			11,511		12,060		9,198		10,693		8,722
	Net occupancy			6,132		6,643		6,262		6,489		6,119
	Equipment and software			8,823		9,063		8,712		8,083		7,702
	Marketing			2,763		2,325		1,788		2,377		2,749
	FDIC insurance			2,871		2,884		2,051		2,391		1,937
	Amortization of intangible assets			2,282		2,301		2,541		2,560		2,579
	Restructuring and merger-related expense			35		3,153		11		66		52
	Other operating expenses			17,549		15,744		17,286		15,011		15,946
			Total non-interest expense	96,437		96,125		90,455		91,941		87,019
Income before provision for income taxes				53,943		52,283		64,066		65,351		53,004
	Provision for income taxes			9,063		9,942		11,856		12,318		10,256
Net Income				44,880		42,341		52,210		53,033		42,748
Preferred stock dividends				2,531		2,531		2,531		2,531		2,531
Net income available to common shareholders				$          42,349		$            39,810		$            49,679		$            50,502		$            40,217
Taxable equivalent net interest income				$       122,822		$       125,605		$       131,164		$       125,808		$       113,479
Per common share data
Net income per common share - basic				$               0.71		$                0.67		$                0.84		$                0.85		$                0.67
Net income per common share - diluted				0.71		0.67		0.84		0.85		0.67
Net income per common share - diluted, excluding certain items (1)(2)				0.71		0.71		0.84		0.85		0.67
Dividends declared				0.35		0.35		0.35		0.34		0.34
Book value (period end)				39.10		39.34		38.55		37.96		38.92
Tangible book value (period end) (1)				20.08		20.27		19.43		18.84		19.89
Average common shares outstanding - basic				59,263,949		59,217,711		59,188,238		59,549,244		60,036,103
Average common shares outstanding - diluted				59,385,847		59,375,053		59,374,204		59,697,676		60,185,207
Period end common shares outstanding				59,355,062		59,246,569		59,198,963		59,304,505		59,698,788
Period end preferred shares outstanding				150,000		150,000		150,000		150,000		150,000
Full time equivalent employees				2,542		2,501		2,495		2,480		2,509
(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				2023		2023		2022		2022		2022
Non-performing assets:
	Troubled debt restructurings - accruing			$                -		$                -		$           3,230		$           4,583		$           3,579
	Non-accrual loans:
		Troubled debt restructurings		-		-		1,711		1,756		2,120
		Other non-accrual loans		31,555		39,216		36,474		26,428		29,594
		Total non-accrual loans		31,555		39,216		38,185		28,184		31,714
		Total non-performing loans		31,555		39,216		41,415		32,767		35,293
	Other real estate and repossessed assets			1,432		1,554		1,486		1,595		31
		Total non-performing assets		$       32,987		$         40,770		$         42,901		$         34,362		$         35,324
Past due loans (1):
	Loans past due 30-89 days			$       18,348		$         12,920		$         15,439		$         21,836		$         31,388
	Loans past due 90 days or more			5,147		4,570		5,443		24,311		9,560
		Total past due loans		$       23,495		$         17,490		$         20,882		$         46,147		$         40,948
Criticized and classified loans (2):
	Criticized loans			$    119,771		$       116,608		$       147,945		$       163,176		$       193,871
	Classified loans			67,036		57,222		102,555		86,861		126,257
		Total criticized and classified loans		$    186,807		$       173,830		$       250,500		$       250,037		$       320,128
Loans past due 30-89 days / total portfolio loans				0.16	%	0.12	%	0.14	%	0.21	%	0.31	%
Loans past due 90 days or more / total portfolio loans				0.05		0.04		0.05		0.24		0.09
Non-performing loans / total portfolio loans				0.28		0.36		0.39		0.32		0.35
Non-performing assets / total portfolio loans, other
	real estate and repossessed assets			0.30		0.37		0.40		0.33		0.35
Non-performing assets / total assets				0.19		0.24		0.25		0.21		0.21
Criticized and classified loans / total portfolio loans				1.68		1.60		2.34		2.43		3.14
Allowance for credit losses
Allowance for credit losses - loans				$    120,166		$       118,698		$       117,790		$       114,584		$       117,403
Allowance for credit losses - loan commitments				10,124		9,127		8,368		8,938		7,718
Provision for credit losses				3,028		3,577		3,123		(535)		(812)
Net loan and deposit account overdraft charge-offs and recoveries				581		1,919		493		1,102		2
Annualized net loan charge-offs and recoveries / average loans				0.02	%	0.07	%	0.02	%	0.04	%	0.00	%
Allowance for credit losses - loans / total portfolio loans				1.08	%	1.09	%	1.10	%	1.11	%	1.15	%
Allowance for credit losses - loans / non-performing loans				3.81	x	3.03	x	2.84	x	3.50	x	3.33	x
Allowance for credit losses - loans / non-performing loans and
	loans past due			2.18	x	2.09	x	1.89	x	1.45	x	1.54	x
				June 30,		Mar. 31,		Dec. 31,		Sept. 30,		June 30,
				2023		2023		2022		2022		2022
Capital ratios
Tier I leverage capital				9.78	%	9.82	%	9.90	%	9.68	%	9.51	%
Tier I risk-based capital				12.12		12.22		12.33		12.51		12.49
Total risk-based capital				14.83		14.97		15.11		15.37		15.40
Common equity tier 1 capital ratio (CET 1)				11.03		11.11		11.20		11.35		11.31
Average shareholders' equity to average assets				14.42		14.48		14.45		14.75		14.79
Tangible equity to tangible assets (3)				8.24		8.33		8.19		8.16		8.50
Tangible common equity to tangible assets (3)				7.35		7.44		7.28		7.22		7.58
(1) Excludes non-performing loans.
(2) Criticized and classified commercial loans may include loans that are also reported as non-performing or past due.
(3) 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)				2023		2023		2022		2022		2022		2023	2022
Return on average assets, excluding after-tax restructuring and merger-related expenses:
	Net income available to common shareholders			$         42,349		$           39,810		$           49,679		$           50,502		$           40,217		$             82,158	$           81,807
	Plus: after-tax restructuring and merger-related expenses  (1)			28		2,491		9		52		41		2,519	1,300
	Net income available to common shareholders excluding after-tax restructuring and merger-related expenses			42,377		42,301		49,688		50,554		40,258		84,677	83,107
	Average total assets			$ 17,294,346		$    16,970,554		$    16,685,930		$    16,871,655		$    16,971,452		$     17,133,344	$    16,981,958
Return on average assets, excluding after-tax restructuring and merger-related expenses (annualized)  (2)				0.98 %		1.01 %		1.18 %		1.19 %		0.95 %		1.00 %	0.99 %
Return on average equity, excluding after-tax restructuring and merger-related expenses:
	Net income available to common shareholders			$         42,349		$           39,810		$           49,679		$           50,502		$           40,217		$             82,158	$           81,807
	Plus: after-tax restructuring and merger-related expenses  (1)			28		2,491		9		52		41		2,519	1,300
	Net income available to common shareholders excluding after-tax restructuring and merger-related expenses			42,377		42,301		49,688		50,554		40,258		84,677	83,107
	Average total shareholders' equity			$   2,493,096		$      2,458,067		$      2,410,761		$      2,488,938		$      2,509,439		$       2,475,678	$      2,582,257
Return on average equity, excluding after-tax  restructuring and merger-related expenses (annualized)  (2)				6.82 %		6.98 %		8.18 %		8.06 %		6.43 %		6.90 %	6.49 %
Return on average tangible equity:
	Net income available to common shareholders			$         42,349		$           39,810		$           49,679		$           50,502		$           40,217		$             82,158	$           81,807
	Plus: amortization of intangibles (1)			1,803		1,818		2,007		2,022		2,037		3,621	4,091
	Net income available to common shareholders before amortization of intangibles			44,152		41,628		51,686		52,524		42,254		85,779	85,898
	Average total shareholders' equity			2,493,096		2,458,067		2,410,761		2,488,938		2,509,439		2,475,678	2,582,257
	Less: average goodwill and other intangibles, net of def. tax liability			(1,129,155)		(1,131,027)		(1,132,894)		(1,135,007)		(1,137,187)		(1,130,086)	(1,138,209)
	Average tangible equity			$   1,363,941		$      1,327,040		$      1,277,867		$      1,353,931		$      1,372,252		$       1,345,592	$      1,444,048
Return on average tangible equity (annualized)  (2)				12.98 %		12.72 %		16.05 %		15.39 %		12.35 %		12.86 %	12.00 %
	Average tangible common equity			$   1,219,457		$      1,182,556		$      1,133,383		$      1,209,447		$      1,227,768		$       1,201,108	$      1,299,564
Return on average tangible common equity (annualized)  (2)				14.52 %		14.28 %		18.10 %		17.23 %		13.80 %		14.40 %	13.33 %
Return on average tangible equity, excluding after-tax restructuring and merger-related expenses:
	Net income available to common shareholders			$         42,349		$           39,810		$           49,679		$           50,502		$           40,217		$             82,158	$           81,807
	Plus: after-tax restructuring and merger-related expenses  (1)			28		2,491		9		52		41		2,519	1,300
	Plus: amortization of intangibles  (1)			1,803		1,818		2,007		2,022		2,037		3,621	4,091
	Net income available to common shareholders before amortization of intangibles
	and excluding after-tax restructuring and merger-related expenses			44,180		44,119		51,695		52,576		42,295		88,298	87,198
	Average total shareholders' equity			2,493,096		2,458,067		2,410,761		2,488,938		2,509,439		2,475,678	2,582,257
	Less: average goodwill and other intangibles, net of def. tax liability			(1,129,155)		(1,131,027)		(1,132,894)		(1,135,007)		(1,137,187)		(1,130,086)	(1,138,209)
	Average tangible equity			$   1,363,941		$      1,327,040		$      1,277,867		$      1,353,931		$      1,372,252		$       1,345,592	$      1,444,048
Return on average tangible equity, excluding after-tax  restructuring and merger-related expenses (annualized)  (2)				12.99 %		13.48 %		16.05 %		15.41 %		12.36 %		13.23 %	12.18 %
	Average tangible common equity			$   1,219,457		$      1,182,556		$      1,133,383		$      1,209,447		$      1,227,768		$       1,201,108	$      1,299,564
Return on average tangible common equity, excluding after-tax restructuring and merger-related expenses (annualized)  (2)				14.53 %		15.13 %		18.10 %		17.25 %		13.82 %		14.82 %	13.53 %
Efficiency ratio:
	Non-interest expense			$         96,437		$           96,125		$           90,455		$           91,941		$           87,019		$           192,560	$         174,569
	Less: restructuring and merger-related expense			(35)		(3,153)		(11)		(66)		(52)		(3,188)	(1,646)
	Non-interest expense excluding restructuring and merger-related expense			96,402		92,972		90,444		91,875		86,967		189,372	172,923
	Net interest income on a fully taxable equivalent basis			122,822		125,605		131,164		125,808		113,479		248,427	222,343
	Non-interest income			31,841		27,653		27,770		32,256		26,983		59,493	57,365
	Net interest income on a fully taxable equivalent basis plus non-interest income			$       154,663		$         153,258		$         158,934		$         158,064		$         140,462		$           307,920	$         279,708
	Efficiency ratio			62.33 %		60.66 %		56.91 %	#	58.13 %		61.91 %		61.50 %	61.82 %
Net income available to common shareholders, excluding after-tax restructuring and merger-related expenses:
	Net income available to common shareholders			$         42,349		$           39,810		$           49,679		$           50,502		$           40,217		$             82,158	$           81,807
	Add: After-tax restructuring and merger-related expenses (1)			28		2,491		9		52		41		2,519	1,300
Net income available to common shareholders, excluding after-tax restructuring and merger-related expenses				$         42,377		$           42,301		$           49,688		$           50,554		$           40,258		$             84,677	$           83,107
Net income per common share - diluted, excluding after-tax restructuring and merger-related expenses:
	Net income per common share - diluted			$              0.71		$               0.67		$               0.84		$               0.85		$               0.67		$                  1.38	$               1.34
	Add: After-tax restructuring and merger-related expenses per common share - diluted (1)			-		0.04		-		-		-		0.05	0.02
Net income per common share - diluted, excluding after-tax restructuring and merger-related expenses				$              0.71		$               0.71		$               0.84		$               0.85		$               0.67		$                  1.43	$               1.36
				Period End
				June 30,		March 31,		Dec. 31,		Sept. 30,		June 30,
				2023		2023		2022		2022		2022
Tangible book value per share:
	Total shareholders' equity			$   2,464,998		$      2,475,457		$      2,426,662		$      2,395,652		$      2,467,951
	Less:  goodwill and other intangible assets, net of def. tax liability			(1,128,371)		(1,130,172)		(1,131,990)		(1,133,998)		(1,136,020)
	Less: preferred shareholder's equity			(144,484)		(144,484)		(144,484)		(144,484)		(144,484)
	Tangible common equity			1,192,143		1,200,801		1,150,188		1,117,170		1,187,447
	Common shares outstanding			59,355,062		59,246,569		59,198,963		59,304,505		59,698,788
Tangible book value per share				$           20.08		$             20.27		$             19.43		$             18.84		$             19.89
Tangible common equity to tangible assets:
	Total shareholders' equity			$   2,464,998		$      2,475,457		$      2,426,662		$      2,395,652		$      2,467,951
	Less:  goodwill and other intangible assets, net of def. tax liability			(1,128,371)		(1,130,172)		(1,131,990)		(1,133,998)		(1,136,020)
	Tangible equity			1,336,627		1,345,285		1,294,672		1,261,654		1,331,931
	Less: preferred shareholder's equity			(144,484)		(144,484)		(144,484)		(144,484)		(144,484)
	Tangible common equity			1,192,143		1,200,801		1,150,188		1,117,170		1,187,447
	Total assets			17,356,954		17,274,626		16,931,905		16,604,747		16,799,624
	Less:  goodwill and other intangible assets, net of def. tax liability			(1,128,371)		(1,130,172)		(1,131,990)		(1,133,998)		(1,136,020)
	Tangible assets			$ 16,228,583		$    16,144,454		$    15,799,915		$    15,470,749		$    15,663,604
Tangible equity to tangible assets				8.24 %		8.33 %		8.19 %		8.16 %		8.50 %
Tangible common equity to tangible assets				7.35 %		7.44 %		7.28 %		7.22 %		7.58 %
(1) Tax effected at 21% for all periods presented.
(2) The ratios are annualized by utilizing actual numbers of days in the quarter versus the year.

 

 

WESBANCO, INC.
Additional Non-GAAP Financial Measures												Page 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)				2023		2023		2022		2022		2022		2023	2022
Pre-tax, pre-provision income:
	Income before provision for income taxes			$         53,943		$           52,283		$           64,066		$           65,351		$           53,004		$       106,226	$         106,984
	Add: provision for credit losses			3,028		3,577		3,123		(535)		(812)		6,605	(4,250)
Pre-tax, pre-provision income				$         56,971		$           55,860		$           67,189		$           64,816		$           52,192		$       112,831	$         102,734
Pre-tax, pre-provision income, excluding restructuring and merger-related expenses:
	Income before provision for income taxes			$         53,943		$           52,283		$           64,066		$           65,351		$           53,004		$       106,226	$         106,984
	Add: provision for credit losses			3,028		3,577		3,123		(535)		(812)		6,605	(4,250)
	Add: restructuring and merger-related expenses			35		3,153		11		66		52		3,188	1,646
Pre-tax, pre-provision income, excluding restructuring and merger-related expenses				$         57,006		$           59,013		$           67,200		$           64,882		$           52,244		$       116,019	$         104,380
Return on average assets, excluding certain items (1):
	Income before provision for income taxes			$         53,943		$           52,283		$           64,066		$           65,351		$           53,004		$       106,226	$         106,984
	Add: provision for credit losses			3,028		3,577		3,123		(535)		(812)		6,605	(4,250)
	Add: restructuring and merger-related expenses			35		3,153		11		66		52		3,188	1,646
Pre-tax, pre-provision income, excluding restructuring and merger-related expenses				57,006		59,013		67,200		64,882		52,244		116,019	104,380
	Average total assets			$ 17,294,346		$    16,970,554		$    16,685,930		$    16,871,655		$    16,971,452		$ 17,133,344	$    16,981,958
Return on average assets, excluding certain items (annualized)  (1) (2)				1.32 %		1.41 %		1.60 %		1.53 %		1.23 %		1.37 %	1.24 %
Return on average equity, excluding certain items (1):
	Income before provision for income taxes			$         53,943		$           52,283		$           64,066		$           65,351		$           53,004		$       106,226	$         106,984
	Add: provision for credit losses			3,028		3,577		3,123		(535)		(812)		6,605	(4,250)
	Add: restructuring and merger-related expenses			35		3,153		11		66		52		3,188	1,646
Pre-tax, pre-provision income, excluding restructuring and merger-related expenses				57,006		59,013		67,200		64,882		52,244		116,019	104,380
	Average total shareholders' equity			$   2,493,096		$      2,458,067		$      2,410,761		$      2,488,938		$      2,509,439		$   2,475,678	$      2,582,257
Return on average equity, excluding certain items (annualized) (1) (2)				9.17 %		9.74 %		11.06 %		10.34 %		8.35 %		9.45 %	8.15 %
Return on average tangible equity, excluding certain items (1):
	Income before provision for income taxes			$         53,943		$           52,283		$           64,066		$           65,351		$           53,004		$       106,226	$         106,984
	Add: provision for credit losses			3,028		3,577		3,123		(535)		(812)		6,605	(4,250)
	Add: amortization of intangibles			2,282		2,301		2,541		2,560		2,579		4,583	5,178
	Add: restructuring and merger-related expenses			35		3,153		11		66		52		3,188	1,646
Income before provision, restructuring and merger-related expenses and amortization of intangibles				59,288		61,314		69,741		67,442		54,823		120,602	109,558
	Average total shareholders' equity			2,493,096		2,458,067		2,410,761		2,488,938		2,509,439		2,475,678	2,582,257
	Less: average goodwill and other intangibles, net of def. tax liability			(1,129,155)		(1,131,027)		(1,132,894)		(1,135,007)		(1,137,187)		(1,130,086)	(1,138,209)
	Average tangible equity			$   1,363,941		$      1,327,040		$      1,277,867		$      1,353,931		$      1,372,252		$   1,345,592	$      1,444,048
Return on average tangible equity, excluding certain items (annualized) (1) (2)				17.44 %		18.74 %		21.65 %		19.76 %		16.02 %		18.07 %	15.30 %
	Average tangible common equity			$   1,219,457		$      1,182,556		$      1,133,383		$      1,209,447		$      1,227,768		$   1,201,108	$      1,299,564
Return on average tangible common equity, excluding certain items (annualized) (1) (2)				19.50 %		21.03 %		24.41 %		22.12 %		17.91 %		20.25 %	17.00 %
(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-2023-financial-results-301885576.html

SOURCE WesBanco, Inc.