WesBanco Announces Third Quarter 2021 Financial Results

Rhea-AI Summary

WesBanco reported net income of $41.9 million with a diluted EPS of $0.64 for Q3 2021, a slight increase from $41.3 million and $0.61 per diluted share in Q3 2020. For the first nine months, net income surged to $180.5 million or $2.71 per diluted share compared to $69.2 million or $1.03 in the same period last year. Notably, deposit growth reached 10.0% year-over-year, and the company repurchased 2.1 million shares. However, net interest income declined by $5.3 million or 4.4% in Q3, attributed to lower loan yields in a low interest rate environment.

Positive

• Net income increased to $41.9 million in Q3 2021 from $41.3 million in Q3 2020.
• Diluted EPS rose to $0.64 in Q3 2021 from $0.61 in Q3 2020.
• Year-to-date net income for 2021 is $180.5 million, a substantial rise from $69.2 million in 2020.
• Deposits increased by 10.0% year-over-year, with a 15.0% rise in demand deposits.
• Completed share repurchase of approximately 2.1 million shares totaling $71.3 million.
• Selected as one of America's Best Banks by Newsweek for the second consecutive year.

Negative

• Net interest income decreased by $5.3 million or 4.4% in Q3 2021 compared to Q3 2020.
• Net interest margin declined to 3.08%, down 23 basis points from the previous year.
• Portfolio loans decreased by 9.8% due to the forgiveness of PPP loans and commercial real estate payoffs.

WHEELING, W.Va., Oct. 26, 2021 /PRNewswire/ -- WesBanco, Inc. ("WesBanco") (Nasdaq: WSBC), a diversified, multi-state bank holding company, today announced net income and related earnings per share for the three and nine months ended September 30, 2021.  Net income available to common shareholders for the period was $41.9 million, with diluted earnings per share of $0.64, compared to $41.3 million and $0.61 per diluted share, respectively, for the third quarter of 2020.  For the nine months ended September 30, 2021, net income was $180.5 million, or $2.71 per diluted share, compared to $69.2 million, or $1.03 per diluted share, for the 2020 period.  Net income available to common shareholders, excluding after-tax restructuring and merger-related expenses, for the three months ended September 30, 2021, was $45.4 million, or $0.70 per diluted share, as compared to $44.2 million and $0.66 per diluted share, respectively, in the prior year quarter (non-GAAP measures).  On the same basis, net income for the nine months ended September 30, 2021 was $185.7 million, or $2.79 per diluted share, as compared to $76.5 million, or $1.14 per diluted share, in the prior year period (non-GAAP measures).

 

			For the Three Months Ended September 30,									For the Nine Months Ended September 30,
			2021				2020					2021				2020
(unaudited, dollars in thousands, except per share amounts)			Net Income		Diluted Earnings Per Share		Net Income		Diluted Earnings Per Share			Net Income		Diluted Earnings Per Share		Net Income		Diluted Earnings Per Share
Net income available to common shareholders (Non-GAAP)(1)			$      45,406		$       0.70		$      44,155		$       0.66			$    185,685		$       2.79		$      76,489		$       1.14
Less: After-tax restructuring and merger- related expenses			(3,529)		(0.06)		(2,850)		(0.05)			(5,167)		(0.08)		(7,300)		(0.11)
Net income available to common shareholders (GAAP)			$      41,877		$       0.64		$      41,305		$       0.61			$    180,518		$       2.71		$      69,189		$       1.03
(1)See non-GAAP financial measures for additional information relating to the calculation of these items.

 

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

• Pre-tax, pre-provision income ("PTPP") excluding restructuring and merger-related expenses (non-GAAP measure) was $57.8 million, which included $2.6 million of settlement costs with respect to the pending resolution of a lawsuit
• Continued expense management demonstrated by a year-to-date efficiency ratio of 57.04% (non-GAAP measure)
• Deposit growth, excluding certificates of deposit ("CDs"), was 15.0% year-over-year, driven by growth in demand deposits
• Improving macro-economic forecasts favorably impacted the provision for credit losses under the Current Expected Credit Losses ("CECL") methodology, which drove both the net benefit in the provision for credit losses and the reduction in allowance for credit losses during the quarter
• Key credit quality metrics such as non-performing assets, past due loans, and net loan charge-offs, as percentages of total portfolio loans, have remained at low levels and favorable to peer bank averages, those with total assets between $10 billion and $25 billion (based upon the prior four quarters)
• During the quarter, we purchased approximately 2.1 million shares of our common stock on the open market under existing share repurchase authorizations
• WesBanco Bank was named, for the second consecutive year, to Newsweek magazine's ranking of America's Best Banks, recognizing those banks that best serve their customers' needs, as well as being named the Best Big Bank in the state of West Virginia
• Our core banking software system conversion was completed on August 2, which, among other benefits, provides enhanced digital capabilities

"We are pleased with WesBanco's performance during the third quarter of 2021 as we continue to deliver solid pre-tax, pre-provision earnings and manage discretionary expenses," said Todd F. Clossin, President and Chief Executive Officer of WesBanco.  "We remain focused on ensuring a strong organization for our shareholders and will continue to appropriately return capital to them.  In addition, we continue to make strategic hires across our organization and markets to enhance our ability to leverage growth opportunities once they fully return."

Mr. Clossin added, "I remain proud of our entire organization as it has remained diligently focused on serving the financial needs of our customers and communities throughout the pandemic, the re-opening of our economies, and through the completion of our core banking software system conversion.  For the second year in a row, we have been named to Newsweek magazine's ranking of America's Best Banks which recognizes those institutions that best serve their customers' needs.  I would also like to congratulate our Community Development team for their being nationally honored with the ABA Foundation Community Commitment Award for their strong performance and outreach with our New Markets Loan Program."

Balance Sheet
Portfolio loans of $9.9 billion as of September 30, 2021 decreased 9.8% when compared to the prior year period, due primarily to forgiveness of approximately 8,140 SBA Payroll Protection Program ("SBA PPP") loans totaling $940 million and a high level of commercial real estate loan payoffs of $260 million during the third quarter of 2021.  This higher level of payoffs negatively impacted total loan growth by approximately two percentage points.  Further, when excluding SBA PPP loans, total loans decreased 4.9% year-over-year and 1.8% sequentially.  As of September 30, approximately 3,190 SBA PPP loans for $272 million remained in the loan portfolio.

Total deposits increased 10.0% year-over-year to $13.4 billion due primarily to stimulus funds previously received by our customers and increased personal savings, which more than offset a $353.3 million reduction in CDs.  Deposits, excluding CDs, increased 15.0% year-over-year, driven by a 16.5% increase in total demand deposits, which represent approximately 58% of total deposits.

Credit Quality
As of September 30, 2021, total loans past due, non-performing loans, and non-performing assets as percentages of the portfolio and total assets have remained relatively low and consistent throughout the last five quarters.  In addition, for the third quarter, we realized net loan charge-offs to average loans of three basis points, on an annualized basis.  The allowance for credit losses specific to total portfolio loans at September 30, 2021 was $136.6 million, or 1.38% of total loans; or, when excluding SBA PPP loans, 1.42% of total portfolio loans.  The improvements in the macroeconomic forecasts and certain qualitative factors resulted in a negative provision for credit losses of $1.7 million for the third quarter of 2021, and a negative provision of $50.7 million for the year-to-date period.

Net Interest Margin and Income
The net interest margin of 3.08% for the third quarter of 2021 decreased 4 basis points sequentially and 23 basis points from the third quarter of 2020, primarily due to the lower interest rate environment, and a shift to a higher level of securities as a percentage of total assets.  As a result of increased cash balances from our customers' higher personal savings creating extra liquidity, investment securities increased by $1.1 billion year-over-year and, as of September 30, 2021, represented approximately 23% of total assets.  Reflecting the continued low interest rate environment, we remain focused on controlling the costs of our various funding sources.  We have reduced all posted deposit rates, including certificates of deposit, throughout the past year, which helped to lower deposit funding costs 12 basis points year-over-year to 14 basis points for the third quarter of 2021, or 9 basis points when including non-interest bearing deposits.  Furthermore, we continued to reduce our average FHLB borrowings to $0.3 billion, down 71.3% from the prior year, which lowered the cost of these borrowings by 53 basis points year-over-year.  Accretion from acquisitions benefited the third quarter net interest margin by 10 basis points, as compared to 18 basis points in the prior year period.  Lastly, the forgiveness of existing and funding of new SBA PPP loans benefited the third quarter of 2021 net interest margin by a net 14 basis points, as compared to a net 2 basis points in the prior year period.

Net interest income decreased $5.3 million, or 4.4%, during the third quarter of 2021, as compared to the same quarter of 2020, reflecting lower loan yields due to repricing of existing loans and lower new offered rates in the current market environment, lower accretion from purchase accounting, and lower rates on new investment securities purchased, partially offset by lower interest paid on deposits and borrowings as described above.  For the nine months ended September 30, 2021, net interest income decreased $12.2 million, or 3.4%, due to the reasons discussed for the three-month period comparison.

Non-Interest Income
For the third quarter of 2021, non-interest income of $32.8 million decreased $1.9 million, or 5.4%, from the third quarter of 2020, driven primarily by lower mortgage banking income, which decreased $3.9 million, or 46.2%, from the record level recorded in the prior year period.  While residential mortgage originations of $382 million continued to be strong during the quarter, as compared to $394 million last year, the amount sold in the secondary market decreased from 75% last year to approximately 40%, as we continued efforts to keep more 1-to-4 family residential mortgages on the balance sheet.  Trust fees increased $0.9 million, or 13.4%, primarily from net organic growth during the quarter.  Electronic banking fees increased $0.6 million, or 13.5%, as we transitioned to adjusted settlement processes of a new third-party digital banking service provider.  Lastly, other income decreased $1.0 million, or 19.4%, due to lower loan swap-related income and the sale of the debit card sponsorship business earlier this year.

Non-interest income, for the nine months ended September 30, 2021, increased $6.6 million, or 6.9%.  The net gain on other real estate owned and other assets of $5.0 million was primarily due to a gain earned during the second quarter on an investment made by WesBanco's Community Development Corporation in a start-up firm more than ten years ago that was recently acquired by a public company.  In addition, mortgage banking fees decreased $0.6 million, or 3.7%, compared to the prior year period, net of year-to-date fair value loss adjustments of $1.0 million, while service charges on deposits were lower due to higher consumer deposits associated with the three rounds of stimulus to-date and lower general consumer spending, resulting in fewer eligible account fees.

Non-Interest Expense
Total operating expenses continued to be well-controlled through company-wide efforts to effectively manage discretionary costs and full-time equivalent employee counts, as demonstrated by a year-to-date efficiency ratio of 57.04%.  Excluding restructuring and merger-related expenses, non-interest expense for the three months ended September 30, 2021 increased $3.9 million, or 4.5%, to $90.2 million compared to the prior year period, primarily due to $2.6 million of settlement costs with respect to the pending resolution of a lawsuit, included within other operating expenses, and higher salary expense.  Salaries and wages increased $1.2 million, or 3.0%, due to higher incentive compensation expense of $1.8 million, reflecting increased business growth and financial performance as compared to the pandemic-impacted prior year, which more than offset lower year-over-year salary expense of approximately $0.9 million.  In addition, employee benefits for the third quarter of $10.7 million, as compared to $10.6 million last year, included an additional $1.4 million from higher employee health insurance claims offset by lower pension and deferred compensation expenses.  Equipment and software expense for the third quarter of 2021 increased $1.4 million, or 22.2%, year-over-year due to increased asset size, increased usage of digital banking services, and SBA PPP loan forgiveness.  Lastly, FDIC insurance expense decreased $0.7 million, or 37.0%, year-over-year due to improved risk factors. 

On a similar basis, non-interest expense during the first nine months of 2021 increased just $0.8 million, or 0.3%, compared to the prior year period.  The primary drivers of this slight increase were higher equipment and software costs and legal settlement costs mentioned above and higher marketing expense from product advertising and brand awareness campaigns that were delayed from 2020 due to the COVID-19 pandemic.  The increases were mostly offset by lower FDIC insurance from a refund received last quarter and improved risk factors, lower salaries and wages from financial center closures during the past year, and lower amortization of intangible asset expense.

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 September 30, 2021, Tier I leverage was 10.10%, Tier I risk-based capital ratio was 14.18%, common equity Tier 1 capital ratio ("CET 1") was 12.91%, and total risk-based capital was 16.38%.

During the third quarter of 2021, WesBanco repurchased 2,138,515 shares of its outstanding common stock on the open market at a total cost of $71.3 million.  As of September 30, 2021, approximately 2.96 million shares remained for repurchase under the existing share repurchase authorization that was approved on August 26, 2021, by WesBanco's Board of Directors.

Conference Call and Webcast
WesBanco will host a conference call to discuss the Company's financial results for the third quarter of 2021 at 10:00 a.m. ET on Wednesday, October 27, 2021.  Interested parties can access the live webcast of the conference call through the Investor Relations section of the Company's website, www.wesbanco.com.  Participants can also listen to the conference call by dialing 888-347-6607, 855-669-9657 for Canadian callers, or 412-902-4290 for international callers, and asking to be joined into the WesBanco call. 

A replay of the conference call will be available by dialing 877-344-7529, 855-669-9658 for Canadian callers, or 412-317-0088 for international callers, and providing the access code of 10150984.  The replay will begin at approximately 12:00 p.m. ET on October 27, and end at 12 a.m. ET on November 10.  An archive of the webcast will be available for one year on the Investor Relations section of the Company's website (www.wesbanco.com).

Forward-Looking Statements
Forward-looking statements in this report relating to WesBanco's plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  The information contained in this report should be read in conjunction with WesBanco's Form 10-K for the year ended December 31, 2020 and documents subsequently filed by WesBanco with the Securities and Exchange Commission ("SEC"), including WesBanco's Form 10-Q for the quarters ended March 31, 2021 and June 30, 2021, which are available at the SEC's website, www.sec.gov or at WesBanco's website, www.WesBanco.com.  Investors are cautioned that forward-looking statements, which are not historical fact, involve risks and uncertainties, including those detailed in WesBanco's most recent Annual Report on Form 10-K filed with the SEC under "Risk Factors" in Part I, Item 1A.  Such statements are subject to important factors that could cause actual results to differ materially from those contemplated by such statements, including, without limitation, the effects of changing regional and national economic conditions including the effects of the COVID-19 pandemic; changes in interest rates, spreads on earning assets and interest-bearing liabilities, and associated interest rate sensitivity; sources of liquidity available to WesBanco and its related subsidiary operations; potential future credit losses and the credit risk of commercial, real estate, and consumer loan customers and their borrowing activities; actions of the Federal Reserve Board, the Federal Deposit Insurance Corporation, the SEC, the Financial Institution Regulatory Authority, the Municipal Securities Rulemaking Board, the Securities Investors Protection Corporation, and other regulatory bodies; potential legislative and federal and state regulatory actions and reform, including, without limitation, the impact of the implementation of the Dodd-Frank Act; adverse decisions of federal and state courts; fraud, scams and schemes of third parties; cyber-security breaches; competitive conditions in the financial services industry; rapidly changing technology affecting financial services; marketability of debt instruments and corresponding impact on fair value adjustments; and/or other external developments materially impacting WesBanco's operational and financial performance.  WesBanco does not assume any duty to update forward-looking statements.

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

About WesBanco, Inc.
Founded in 1870, WesBanco, Inc. (www.wesbanco.com) is a diversified and balanced financial services company that delivers large bank capabilities with a community bank feel.  Our distinct long-term growth strategies are built upon unique sustainable advantages permitting us to span six states with meaningful market share.  Built upon our 'Better Banking Pledge', our customer-centric service culture is focused on growing long-term relationships by pledging to serve all personal and business customer needs efficiently and effectively.  In addition to a full range of online and mobile banking options and a full-suite of commercial products and services, WesBanco provides trust, wealth management, securities brokerage, and private banking services through our century-old Trust and Investment Services department, with approximately $5.5 billion of assets under management (as of September 30, 2021).  WesBanco's banking subsidiary, WesBanco Bank, Inc., operates 206 financial centers in the states of Indiana, Kentucky, Maryland, Ohio, Pennsylvania, and West Virginia.  Additionally, WesBanco operates an insurance agency, WesBanco Insurance Services, Inc., and a full service broker/dealer, WesBanco Securities, Inc.

 

WESBANCO, INC.
Consolidated Selected Financial Highlights														Page 5
(unaudited, dollars in thousands, except shares and per share amounts)
				For the Three Months Ended						For the Nine Months Ended
Statement of Income				September 30,						September 30,
Interest and dividend income				2021		2020		% Change		2021		2020		% Change
	Loans, including fees			$        103,206		$          116,524		(11.4)		$        318,532		$          351,095		(9.3)
	Interest and dividends on securities:
		Taxable		13,481		11,669		15.5		37,467		42,702		(12.3)
		Tax-exempt		4,063		4,182		(2.8)		11,925		12,940		(7.8)
			Total interest and dividends on securities	17,544		15,851		10.7		49,392		55,642		(11.2)
	Other interest income			628		1,282		(51.0)		1,836		4,062		(54.8)
Total interest and dividend income				121,378		133,657		(9.2)		369,760		410,799		(10.0)
Interest expense
	Interest bearing demand deposits			815		1,225		(33.5)		2,859		5,970		(52.1)
	Money market deposits			350		707		(50.5)		1,488		3,937		(62.2)
	Savings deposits			244		303		(19.5)		769		1,523		(49.5)
	Certificates of deposit			1,726		3,197		(46.0)		6,122		10,765		(43.1)
			Total interest expense on deposits	3,135		5,432		(42.3)		11,238		22,195		(49.4)
	Federal Home Loan Bank borrowings			1,192		5,457		(78.2)		5,387		20,982		(74.3)
	Other short-term borrowings			33		304		(89.1)		192		1,454		(86.8)
	Subordinated debt and junior subordinated debt			1,743		1,871		(6.8)		5,336		6,400		(16.6)
			Total interest expense	6,103		13,064		(53.3)		22,153		51,031		(56.6)
Net interest income				115,275		120,593		(4.4)		347,607		359,768		(3.4)
	Provision for credit losses			(1,730)		16,288		(110.6)		(50,714)		107,949		(147.0)
Net interest income after provision for credit losses				117,005		104,305		12.2		398,321		251,819		58.2
Non-interest income
	Trust fees			7,289		6,426		13.4		22,069		19,580		12.7
	Service charges on deposits			6,050		5,332		13.5		15,820		16,272		(2.8)
	Electronic banking fees			5,427		4,780		13.5		14,853		13,100		13.4
	Net securities brokerage revenue			1,965		1,725		13.9		5,318		4,787		11.1
	Bank-owned life insurance			2,656		2,088		27.2		6,072		5,609		8.3
	Mortgage banking income			4,563		8,488		(46.2)		16,656		17,295		(3.7)
	Net securities (losses) gains			(15)		787		(101.9)		740		3,577		(79.3)
	Net gain/(loss) on other real estate owned and other assets			785		(19)		NM		4,974		84		NM
	Other income			4,035		5,005		(19.4)		15,574		15,177		2.6
			Total non-interest income	32,755		34,612		(5.4)		102,076		95,481		6.9
Non-interest expense
	Salaries and wages			39,497		38,342		3.0		113,822		114,025		(0.2)
	Employee benefits			10,658		10,604		0.5		30,191		31,115		(3.0)
	Net occupancy			6,825		7,092		(3.8)		20,430		20,809		(1.8)
	Equipment and software			7,609		6,229		22.2		21,654		17,991		20.4
	Marketing			1,848		1,577		17.2		6,033		4,282		40.9
	FDIC insurance			1,227		1,948		(37.0)		2,690		6,456		(58.3)
	Amortization of intangible assets			2,854		3,346		(14.7)		8,622		10,085		(14.5)
	Restructuring and merger-related expense			4,467		3,608		23.8		6,540		9,241		(29.2)
	Other operating expenses			19,716		17,197		14.6		54,858		52,775		3.9
			Total non-interest expense	94,701		89,943		5.3		264,840		266,779		(0.7)
Income before provision for income taxes				55,059		48,974		12.4		235,557		80,521		192.5
	Provision for income taxes			10,651		7,669		38.9		47,445		11,332		318.7
Net Income				44,408		41,305		7.5		188,112		69,189		171.9
Preferred stock dividends				2,531		-		100.0		7,594		-		100.0
Net income available to common shareholders				$          41,877		$            41,305		1.4		$        180,518		$            69,189		160.9
Taxable equivalent net interest income				$       116,355		$       121,705		(4.4)		$       350,777		$       363,208		(3.4)
Per common share data
Net income per common share - basic				$               0.64		$                0.61		4.9		$               2.72		$                1.03		164.1
Net income per common share - diluted				0.64		0.61		4.9		2.71		1.03		163.1
Net income per common share - diluted, excluding certain items (1)(2)				0.70		0.66		6.1		2.79		1.14		144.7
Dividends declared				0.33		0.32		3.1		0.99		0.96		3.1
Book value (period end)				40.41		40.66		(0.6)		40.41		40.66		(0.6)
Tangible book value (period end) (1)				22.51		21.39		5.2		22.51		21.39		5.2
Average common shares outstanding - basic				64,931,764		67,214,759		(3.4)		66,354,750		67,268,449		(1.4)
Average common shares outstanding - diluted				65,065,848		67,269,303		(3.3)		66,510,357		67,351,857		(1.2)
Period end common shares outstanding				63,838,549		67,216,012		(5.0)		63,838,549		67,216,012		(5.0)
Period end preferred shares outstanding				150,000		150,000		-		150,000		150,000		-
(1) See non-GAAP financial measures for additional information relating to the calculation of this item.
(2) Certain items excluded from the calculation consist of after-tax restructuring and merger-related expenses.
NM - Not Meaningful

 

WESBANCO, INC.
Consolidated Selected Financial Highlights																	Page 6
(unaudited, dollars in thousands)
Selected ratios
						For the Nine Months Ended
						September 30,
						2021		2020		% Change
Return on average assets						1.43	%	0.56	%	155.36	%
Return on average assets, excluding
after-tax restructuring and merger-related expenses (1)						1.47		0.62		137.10
Return on average equity						8.67		3.53		145.61
Return on average equity, excluding
after-tax restructuring and merger-related expenses (1)						8.92		3.90		128.72
Return on average tangible equity (1)						15.30		6.96		119.83
Return on average tangible equity, excluding
after-tax restructuring and merger-related expenses (1)						15.72		7.62		106.30
Return on average tangible common equity (1)						16.78		7.09		136.67
Return on average tangible common equity, excluding
after-tax restructuring and merger-related expenses (1)						17.25		7.76		122.29
Yield on earning assets (2)						3.36		3.86		(12.95)
Cost of interest bearing liabilities						0.31		0.69		(55.07)
Net interest spread (2)						3.05		3.17		(3.79)
Net interest margin (2)						3.16		3.38		(6.51)
Efficiency (1) (2)						57.04		56.15		1.59
Average loans to average deposits						80.01		92.37		(13.38)
Annualized net loan charge-offs/average loans						0.01		0.08		(87.50)
Effective income tax rate						20.14		14.07		43.14
						For the Three Months Ended
						Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,
						2021		2021		2021		2020		2020
Return on average assets						0.97	%	1.60	%	1.72	%	1.21	%	0.98	%
Return on average assets, excluding
after-tax restructuring and merger-related expenses (1)						1.06		1.62		1.74		1.22		1.05
Return on average equity						5.98		9.74		10.33		7.28		6.17
Return on average equity, excluding
after-tax restructuring and merger-related expenses (1)						6.49		9.88		10.43		7.33		6.60
Return on average tangible equity (1)						10.72		17.04		18.22		13.18		11.56
Return on average tangible equity, excluding
after-tax restructuring and merger-related expenses (1)						11.57		17.27		18.39		13.28		12.31
Return on average tangible common equity (1)						11.76		18.67		20.00		14.49		12.21
Return on average tangible common equity, excluding
after-tax restructuring and merger-related expenses (1)						12.70		18.92		20.18		14.60		13.00
Yield on earning assets (2)						3.24		3.32		3.51		3.61		3.66
Cost of interest bearing liabilities						0.25		0.31		0.37		0.45		0.53
Net interest spread (2)						2.99		3.01		3.14		3.16		3.13
Net interest margin (2)						3.08		3.12		3.27		3.31		3.31
Efficiency (1) (2)						60.52		53.97		56.71		57.06		55.23
Average loans to average deposits						75.46		79.82		85.27		89.64		90.88
Annualized net loan charge-offs and recoveries /average loans						0.03		(0.03)		0.02		0.02		(0.00)
Effective income tax rate						19.34		20.85		19.93		18.13		15.66
Trust assets, market value at period end						$   5,464,159		$      5,480,995		$      5,244,370		$      5,025,565		$      4,649,054
(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					September 30,					December 31,	December 31, 2020
Assets					2021		2020		% Change	2020	to September 30, 2021
Cash and due from banks					$        201,505		$         215,982		(6.7)	$           184,361	9.3
Due from banks - interest bearing					919,611		544,284		69.0	721,086	27.5
Securities:
	Equity securities, at fair value				13,451		12,516		7.5	13,047	3.1
	Available-for-sale debt securities, at fair value				2,986,803		2,045,924		46.0	1,978,136	51.0
	Held-to-maturity debt securities (fair values of $978,494; $782,401
	and $768,183, respectively)				953,920		746,767		27.7	731,212	30.5
		Allowance for credit losses, held-to-maturity debt securities			(257)		(461)		44.3	(326)	21.2
	Net held-to-maturity debt securities				953,663		746,306		27.8	730,886	30.5
		Total securities			3,953,917		2,804,746		41.0	2,722,069	45.3
Loans held for sale					32,308		134,151		(75.9)	168,378	(80.8)
Portfolio loans:
	Commercial real estate				5,657,886		5,708,648		(0.9)	5,705,392	(0.8)
	Commercial and industrial				1,707,214		2,507,235		(31.9)	2,407,438	(29.1)
	Residential real estate				1,655,229		1,798,019		(7.9)	1,720,961	(3.8)
	Home equity				607,735		647,052		(6.1)	646,387	(6.0)
	Consumer				285,101		328,592		(13.2)	309,055	(7.8)
Total portfolio loans, net of unearned income					9,913,165		10,989,546		(9.8)	10,789,233	(8.1)
Allowance for credit losses - loans					(136,605)		(185,109)		26.2	(185,827)	26.5
		Net portfolio loans			9,776,560		10,804,437		(9.5)	10,603,406	(7.8)
Premises and equipment, net					232,134		248,491		(6.6)	249,421	(6.9)
Accrued interest receivable					61,895		65,023		(4.8)	66,790	(7.3)
Goodwill and other intangible assets, net					1,154,468		1,165,566		(1.0)	1,163,091	(0.7)
Bank-owned life insurance					349,735		304,288		14.9	306,038	14.3
Other assets					209,978		265,172		(20.8)	240,970	(12.9)
Total Assets					$  16,892,111		$    16,552,140		2.1	$       16,425,610	2.8
Liabilities
Deposits:
	Non-interest bearing demand				$     4,531,958		$       4,073,305		11.3	$          4,070,835	11.3
	Interest bearing demand				3,283,444		2,633,601		24.7	2,839,536	15.6
	Money market				1,765,480		1,619,410		9.0	1,685,927	4.7
	Savings deposits				2,488,180		2,167,597		14.8	2,214,565	12.4
	Certificates of deposit				1,354,252		1,707,512		(20.7)	1,618,510	(16.3)
		Total deposits			13,423,314		12,201,425		10.0	12,429,373	8.0
Federal Home Loan Bank borrowings					208,940		794,621		(73.7)	549,003	(61.9)
Other short-term borrowings					152,546		381,909		(60.1)	241,950	(37.0)
Subordinated debt and junior subordinated debt					167,711		192,150		(12.7)	192,291	(12.8)
		Total borrowings			529,197		1,368,680		(61.3)	983,244	(46.2)
Accrued interest payable					2,495		5,014		(50.2)	4,314	(42.2)
Other liabilities					213,122		244,055		(12.7)	251,942	(15.4)
Total Liabilities					14,168,128		13,819,174		2.5	13,668,873	3.7
Shareholders' Equity
Preferred stock, no par value; 1,000,000 shares authorized in 2021 and 2020, respectively;
	150,000 shares 6.75% non-cumulative perpetual preferred stock, Series A,
	liquidation preference $150.0 million, issued and outstanding in 2021 and 2020, respectively				144,484		144,529		(0.0)	144,484	-
Common stock, $2.0833 par value; 100,000,000 shares authorized in
	2021 and 2020, respectively; 68,081,306, 68,081,306 and 68,081,306 shares
	issued, respectively; 63,838,549, 67,216,012 and 67,254,706 shares				141,834		141,834		-	141,834	-
	outstanding, respectively
Capital surplus					1,634,086		1,634,172		(0.0)	1,634,815	(0.0)
Retained earnings					946,746		802,892		17.9	831,688	13.8
Treasury stock (4,242,757, 865,294 and 826,600 shares - at cost, respectively)					(146,102)		(27,403)		(433.2)	(25,949)	(463.0)
Accumulated other comprehensive income					4,463		38,301		(88.3)	31,359	(85.8)
Deferred benefits for directors					(1,528)		(1,359)		(12.4)	(1,494)	(2.3)
Total Shareholders' Equity					2,723,983		2,732,966		(0.3)	2,756,737	(1.2)
Total Liabilities and Shareholders' Equity					$  16,892,111		$     16,552,140		2.1	$        16,425,610	2.8

 

WESBANCO, INC.
Consolidated Selected Financial Highlights								Page 8
(unaudited, dollars in thousands, except shares)
Balance sheet					September 30,		June 30,
Assets					2021		2021	% Change
Cash and due from banks					$      201,505		$      208,992	(3.6)
Due from banks - interest bearing					919,611		637,312	44.3
Securities:
	Equity securities, at fair value				13,451		13,494	(0.3)
	Available-for-sale, at fair value				2,986,803		2,964,264	0.8
	Held-to-maturity (fair values of $978,494 and 934,487, respectively)				953,920		902,172	5.7
		Allowance for credit losses, held-to-maturity debt securities			(257)		(227)	(13.2)
	Net held-to-maturity debt securities				953,663		901,945	5.7
		Total securities			3,953,917		3,879,703	1.9
Loans held for sale					32,308		41,461	(22.1)
Portfolio Loans:
	Commercial real estate				5,657,886		5,705,246	(0.8)
	Commercial and industrial				1,707,214		2,119,186	(19.4)
	Residential real estate				1,655,229		1,625,632	1.8
	Home equity				607,735		631,059	(3.7)
	Consumer				285,101		276,069	3.3
Total portfolio loans, net of unearned income					9,913,165		10,357,192	(4.3)
Allowance for credit losses - loans					(136,605)		(140,730)	2.9
	Net portfolio loans				9,776,560		10,216,462	(4.3)
Premises and equipment, net					232,134		235,227	(1.3)
Accrued interest receivable					61,895		64,020	(3.3)
Goodwill and other intangible assets, net					1,154,468		1,157,322	(0.2)
Bank-owned life insurance					349,735		309,454	13.0
Other assets					209,978		216,914	(3.2)
Total Assets					$ 16,892,111		$   16,966,867	(0.4)
Liabilities
Deposits:
	Non-interest bearing demand				4,531,958		4,409,221	2.8
	Interest bearing demand				3,283,444		3,214,484	2.1
	Money market				1,765,480		1,771,686	(0.4)
	Savings deposits				2,488,180		2,438,328	2.0
	Certificates of deposit				1,354,252		1,484,536	(8.8)
		Total deposits			13,423,314		13,318,255	0.8
Federal Home Loan Bank borrowings					208,940		313,960	(33.5)
Other short-term borrowings					152,546		135,267	12.8
Subordinated debt and junior subordinated debt					167,711		192,571	(12.9)
		Total borrowings			529,197		641,798	(17.5)
Accrued interest payable					2,495		3,342	(25.3)
Other liabilities					213,122		222,636	(4.3)
Total liabilities					14,168,128		14,186,031	(0.1)
Shareholders' Equity
Preferred stock, no par value; 1,000,000 shares authorized;
	150,000 shares 6.75% non-cumulative perpetual preferred stock, Series A,
	liquidation preference $150.0 million, issued and outstanding at September 30, 2021
	and June 30, 2021, respectively				144,484		144,484	-
Common stock, $2.0833 par value; 100,000,000 shares authorized;
	68,081,306 and 68,081,306 shares issued, respectively;
	63,838,549 and 65,970,149 shares outstanding, respectively				141,834		141,834	-
Capital surplus					1,634,086		1,632,460	0.1
Retained earnings					946,746		925,977	2.2
Treasury stock (4,242,757 and 2,111,157 shares - at cost)					(146,102)		(74,996)	(94.8)
Accumulated other comprehensive income					4,463		12,586	(64.5)
Deferred benefits for directors					(1,528)		(1,509)	(1.3)
Total Shareholders' Equity					2,723,983		2,780,836	(2.0)
Total Liabilities and Shareholders' Equity					$ 16,892,111		$   16,966,867	(0.4)

 

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 September 30,								For the Nine Months Ended September 30,
					2021				2020				2021				2020
					Average	Average			Average	Average			Average	Average			Average	Average
Assets					Balance	Rate			Balance	Rate			Balance	Rate			Balance	Rate
Due from banks - interest bearing					$        936,084	0.16	%		$          755,575	0.16	%		$        803,713	0.12	%		$          509,928	0.25	%
Loans, net of unearned income (1)					10,164,279	4.03			11,107,106	4.17			10,562,879	4.03			10,813,737	4.34
Securities: (2)
Taxable					3,210,878	1.67			2,121,780	2.19			2,856,041	1.75			2,328,196	2.45
Tax-exempt (3)					650,397	3.14			603,835	3.49			610,449	3.31			624,278	3.50
Total securities					3,861,275	1.91			2,725,615	2.47			3,466,490	2.03			2,952,474	2.67
Other earning assets					23,646	4.23			56,575	6.88			28,494	5.11			65,849	6.27
Total earning assets (3)					14,985,284	3.24	%		14,644,871	3.66	%		14,861,576	3.36	%		14,341,988	3.86	%
Other assets					2,072,509				2,074,846				2,060,312				2,065,777
Total Assets					$  17,057,793				$     16,719,717				$  16,921,888				$     16,407,765
Liabilities and Shareholders' Equity
Interest bearing demand deposits					$     3,297,702	0.10	%		$       2,654,161	0.18	%		$     3,139,992	0.12	%		$       2,518,952	0.32	%
Money market accounts					1,791,494	0.08			1,623,969	0.17			1,764,462	0.11			1,590,498	0.33
Savings deposits					2,471,593	0.04			2,140,932	0.06			2,393,066	0.04			2,051,930	0.10
Certificates of deposit					1,403,812	0.49			1,761,087	0.72			1,501,857	0.54			1,865,439	0.77
Total interest bearing deposits					8,964,601	0.14			8,180,149	0.26			8,799,377	0.17			8,026,819	0.37
Federal Home Loan Bank borrowings					289,334	1.63			1,006,593	2.16			388,518	1.85			1,285,266	2.18
Other borrowings					136,028	0.10			383,771	0.32			152,450	0.17			361,949	0.54
Subordinated debt and junior subordinated debt					188,276	3.67			192,093	3.87			191,018	3.73			194,195	4.40
Total interest bearing liabilities (4)					9,578,239	0.25	%		9,762,606	0.53	%		9,531,363	0.31	%		9,868,229	0.69	%
Non-interest bearing demand deposits					4,504,332				4,041,681				4,402,487				3,679,743
Other liabilities					197,916				252,917				205,309				239,797
Shareholders' equity					2,777,306				2,662,513				2,782,729				2,619,996
Total Liabilities and Shareholders' Equity					$  17,057,793				$     16,719,717				$  16,921,888				$     16,407,765
Taxable equivalent net interest spread						2.99	%			3.13	%			3.05	%			3.17	%
Taxable equivalent net interest margin						3.08	%			3.31	%			3.16	%			3.38	%
(1) Gross of allowance for loan losses and net of unearned income,  Includes non-accrual and loans held for sale.  Loan fees included in interest income on loans were $6.8 million and $6.2 million for the three months ended September 30, 2021 and 2020, respectively and were $21.5 million and $9.5 million for the nine months ended September 30, 2021 and 2020, respectively.  As part of loan fees, PPP loan fees were $7.1 million and $5.6 million for the three months ended September 30, 2021 and 2020, respectively, and were $21.0 million and $7.7 million for the nine months ended September 30, 2021 and 2020, respectively.  Additionally, loan accretion included in interest income on loans acquired from prior acquisitions was $3.0 million and $4.2 million for the three months ended September 30, 2021 and 2020, respectively, and was $10.3 million and $12.5 million for the nine months ended September 30, 2021 and 2020, respectively.
(2) Average yields on available-for-sale securities are calculated based on amortized cost.
(3) Taxable equivalent basis is calculated on tax-exempt securities using a rate of 21% for each period presented.
(4) Accretion on interest bearing liabilities acquired from prior acquisitions was $0.7 million and $2.1 million for the three months ended September 30, 2021 and 2020, respectively, and was $2.6 million and $8.1 million for the nine months ended September 30, 2021 and 2020, respectively.

 

WESBANCO, INC.
Consolidated Selected Financial Highlights												Page 10
(unaudited, dollars in thousands, except shares and per share amounts)
				Quarter Ended
Statement of Income				Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,
Interest and dividend income				2021		2021		2021		2020		2020
	Loans, including fees			$        103,206		$          105,968		$          109,358		$          114,582		$          116,524
	Interest and dividends on securities:
		Taxable		13,481		12,900		11,127		10,892		11,669
		Tax-exempt		4,063		3,952		3,910		4,059		4,182
			Total interest and dividends on securities	17,544		16,852		15,037		14,951		15,851
	Other interest income			628		507		659		945		1,282
Total interest and dividend income				121,378		123,327		125,054		130,478		133,657
Interest expense
	Interest bearing demand deposits			815		1,009		1,043		1,099		1,225
	Money market deposits			350		551		578		678		707
	Savings deposits			244		261		264		280		303
	Certificates of deposit			1,726		2,026		2,370		2,797		3,197
			Total interest expense on deposits	3,135		3,847		4,255		4,854		5,432
	Federal Home Loan Bank borrowings			1,192		1,781		2,414		3,719		5,457
	Other short-term borrowings			33		40		118		275		304
	Subordinated debt and junior subordinated debt			1,743		1,804		1,789		1,918		1,871
			Total interest expense	6,103		7,472		8,576		10,766		13,064
Net interest income				115,275		115,855		116,478		119,712		120,593
	Provision for credit losses			(1,730)		(21,025)		(27,958)		(209)		16,288
Net interest income after provision for credit losses				117,005		136,880		144,436		119,921		104,305
Non-interest income
	Trust fees			7,289		7,148		7,631		6,754		6,426
	Service charges on deposits			6,050		4,876		4,894		5,671		5,332
	Electronic banking fees			5,427		5,060		4,365		4,424		4,780
	Net securities brokerage revenue			1,965		1,829		1,524		1,402		1,725
	Bank-owned life insurance			2,656		1,707		1,709		1,750		2,088
	Mortgage banking income			4,563		7,830		4,264		5,442		8,488
	Net securities (losses) gains			(15)		477		279		691		787
	Net gain / (loss) on other real estate owned and other assets			785		4,014		175		18		(19)
	Other income			4,035		3,171		8,367		6,553		5,005
			Total non-interest income	32,755		36,112		33,208		32,705		34,612
Non-interest expense
	Salaries and wages			39,497		37,435		36,890		39,140		38,342
	Employee benefits			10,658		9,268		10,266		10,608		10,604
	Net occupancy			6,825		6,427		7,177		6,771		7,092
	Equipment and software			7,609		7,281		6,765		6,810		6,229
	Marketing			1,848		1,802		2,384		1,675		1,577
	FDIC insurance			1,227		181		1,282		1,278		1,948
	Amortization of intangible assets			2,854		2,873		2,896		3,327		3,346
	Restructuring and merger-related expense			4,467		1,222		851		484		3,608
	Other operating expenses			19,716		17,323		17,816		17,976		17,198
			Total non-interest expense	94,701		83,812		86,327		88,069		89,943
Income before provision for income taxes				55,059		89,180		91,317		64,557		48,974
	Provision for income taxes			10,651		18,592		18,202		11,703		7,669
Net Income				44,408		70,588		73,115		52,854		41,305
Preferred stock dividends				2,531		2,531		2,531		2,644		-
Net income available to common shareholders				$          41,877		$            68,057		$            70,584		$            50,210		$            41,305
Taxable equivalent net interest income				$       116,355		$          116,906		$       117,517		$       120,790		$       121,705
Per common share data
Net income per common share - basic				$               0.64		$                1.02		$                1.05		$                0.75		$                0.61
Net income per common share - diluted				0.64		1.01		1.05		0.75		0.61
Net income per common share - diluted, excluding certain items (1)(2)				0.70		1.03		1.06		0.76		0.66
Dividends declared				0.33		0.33		0.33		0.32		0.32
Book value (period end)				40.41		39.96		39.25		38.84		38.51
Tangible book value (period end) (1)				22.51		22.61		22.21		21.75		21.39
Average common shares outstanding - basic				64,931,764		66,894,398		67,263,714		67,238,005		67,214,759
Average common shares outstanding - diluted				65,065,848		67,066,592		67,335,418		67,304,442		67,269,303
Period end common shares outstanding				63,838,549		65,970,149		67,282,134		67,254,706		67,216,012
Period end preferred shares outstanding				150,000		150,000		150,000		150,000		150,000
Full time equivalent employees				2,425		2,459		2,490		2,612		2,618
(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
				Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,
Asset quality data				2021		2021		2021		2020		2020
Non-performing assets:
	Troubled debt restructurings - accruing			$         3,707		$           5,799		$           3,563		$           3,927		$           4,191
	Non-accrual loans:
		Troubled debt restructurings		1,615		1,664		1,768		1,828		1,818
		Other non-accrual loans		34,644		34,548		32,807		35,052		35,448
		Total non-accrual loans		36,259		36,212		34,575		36,880		37,266
		Total non-performing loans		39,966		42,011		38,138		40,807		41,457
	Other real estate and repossessed assets			293		773		393		549		738
		Total non-performing assets		$       40,259		$         42,784		$         38,531		$         41,356		$         42,195
Past due loans (1):
	Loans past due 30-89 days			$       32,682		$         21,233		$         20,602		$         31,596		$         17,338
	Loans past due 90 days or more			11,252		8,318		12,824		8,846		10,170
		Total past due loans		$       43,934		$         29,551		$         33,426		$         40,442		$         27,508
Criticized and classified loans (2):
	Criticized loans			$    290,281		$       319,448		$       340,943		$       362,295		$       248,264
	Classified loans			127,022		136,927		114,884		132,650		108,594
		Total criticized and classified loans		$    417,303		$       456,375		$       455,827		$       494,945		$       356,858
Loans past due 30-89 days / total portfolio loans (3)				0.33	%	0.21	%	0.19	%	0.29	%	0.16	%
Loans past due 90 days or more / total portfolio loans				0.11		0.08		0.12		0.08		0.09
Non-performing loans / total portfolio loans				0.40		0.41		0.36		0.38		0.38
Non-performing assets / total portfolio loans, other
	real estate and repossessed assets			0.41		0.41		0.36		0.38		0.38
Non-performing assets / total assets				0.24		0.25		0.23		0.25		0.26
Criticized and classified loans / total portfolio loans				4.21		4.41		4.26		4.59		3.25
Allowance for credit losses
Allowance for credit losses - loans				$    136,605		$       140,730		$       160,040		$       185,827		$       185,109
Allowance for credit losses - loan commitments				7,290		5,766		6,731		9,514		10,829
Provision for credit losses				(1,730)		(21,025)		(27,958)		(209)		16,288
Net loan and deposit account overdraft charge-offs and recoveries				842		(689)		648		524		(133)
Annualized net loan charge-offs and recoveries / average loans				0.03	%	(0.03)	%	0.02	%	0.02	%	(0.00)	%
Allowance for credit losses - loans / total portfolio loans				1.38	%	1.36	%	1.50	%	1.72	%	1.68	%
Allowance for credit losses - loans / total portfolio loans excluding PPP loans				1.42	%	1.43	%	1.62	%	1.85	%	1.83	%
Allowance for credit losses - loans / non-performing loans				3.42	x	3.35	x	4.20	x	4.55	x	4.47	x
Allowance for credit losses - loans / non-performing loans and
	loans past due			1.63	x	1.97	x	2.24	x	2.29	x	2.68	x
				Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,
				2021		2021		2021		2020		2020
Capital ratios
Tier I leverage capital				10.10	%	10.42	%	10.74	%	10.51	%	10.18	%
Tier I risk-based capital				14.18		15.15		14.95		14.72		14.29
Total risk-based capital				16.38		17.68		17.58		17.58		17.18
Common equity tier 1 capital ratio (CET 1)				12.91		13.83		13.65		13.40		12.99
Average shareholders' equity to average assets				16.28		16.44		16.65		16.59		15.92
Tangible equity to tangible assets (4)				10.04		10.34		10.30		10.52		10.27
Tangible common equity to tangible assets (4)				9.12		9.43		9.39		9.58		9.33
(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 $272.1 million of PPP loans as of September 30, 2021.
(4) See non-GAAP financial measures for additional information relating to the calculation of this ratio.

 

WESBANCO, INC.
Non-GAAP Financial Measures															Page 12
The following non-GAAP financial measures used by WesBanco provide information useful to investors in understanding WesBanco's operating performance and trends, and facilitate comparisons with the performance of WesBanco's peers. The following tables summarize the non-GAAP financial measures derived from amounts reported in WesBanco's financial statements.
				Three Months Ended										Year to Date
				Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,		Sept. 30,
(unaudited, dollars in thousands, except shares and per share amounts)				2021		2021		2021		2020		2020		2021	2020
Return on average assets, excluding after-tax restructuring and merger-related expenses:
	Net income available to common shareholders			$     41,877		$     68,057		$    70,584		$   50,210		$     41,305		$        180,518	$ 69,189
	Plus: after-tax restructuring and merger-related expenses  (1)			3,529		965		672		383		2,850		5,167	7,300
	Net income available to common shareholders excluding after-tax restructuring and merger-related expenses			45,406		69,022		71,256		50,593		44,155		185,685	76,489
	Average total assets			$17,057,793		$   17,042,147		$   16,636,258		$   16,546,761		$   16,719,717		$ 16,921,888	$  16,407,765
Return on average assets, excluding after-tax restructuring and merger-related expenses (annualized)  (2)				1.06%		1.62%		1.74%		1.22%		1.05%		1.47%	0.62%
Return on average equity, excluding after-tax restructuring and merger-related expenses:
	Net income available to common shareholders			$ 41,877		$    68,057		$   70,584		$          50,210		$       41,305		$     180,518	$      69,189
	Plus: after-tax restructuring and merger-related expenses  (1)			3,529		965		672		383		2,850		5,167	7,300
	Net income available to common shareholders excluding after-tax restructuring and merger-related expenses			45,406		69,022		71,256		50,593		44,155		185,685	76,489
	Average total shareholders' equity			$  2,777,306		$  2,801,455		$   2,770,416		$   2,744,936		$ 2,662,513		$ 2,782,729	$  2,619,996
Return on average equity, excluding after-tax  restructuring and merger-related expenses (annualized)  (2)				6.49%		9.88%		10.43%		7.33%		6.60%		8.92%	3.90%
Return on average tangible equity:
	Net income available to common shareholders			$     41,877		$      68,057		$    70,584		$    50,210		$      41,305		$     180,518	$      69,189
	Plus: amortization of intangibles (1)			2,255		2,270		2,288		2,628		2,643		6,811	7,967
	Net income available to common shareholders before amortization of intangibles			44,132		70,327		72,872		52,838		43,948		187,329	77,156
	Average total shareholders' equity			2,777,306		2,801,455		2,770,416		2,744,936		2,662,513		2,782,729	2,619,996
	Less: average goodwill and other intangibles, net of def. tax liability			(1,143,522)		(1,145,882)		(1,148,171)		(1,150,184)		(1,150,549)		(1,145,841)	(1,138,621)
	Average tangible equity			$ 1,633,784		$    1,655,573		$    1,622,245		$   1,594,752		$    1,511,964		$    1,636,888	$   1,481,375
Return on average tangible equity (annualized)  (2)				10.72%		17.04%		18.22%		13.18%		11.56%		15.30%	6.96%
	Average tangible common equity			$  1,489,300		$   1,511,089		$   1,477,736		$   1,450,243		$  1,431,657		$    1,492,404	$   1,454,411
Return on average tangible common equity (annualized)  (2)				11.76%		18.67%		20.00%		14.49%		12.21%		16.78%	7.09%
Return on average tangible equity, excluding after-tax restructuring and merger-related expenses:
	Net income available to common shareholders			$    41,877		$      68,057		$     70,584		$     50,210		$      41,305		$   180,518	$   69,189
	Plus: after-tax restructuring and merger-related expenses  (1)			3,529		965		672		383		2,850		5,167	7,300
	Plus: amortization of intangibles  (1)			2,255		2,270		2,288		2,628		2,643		6,811	7,967
	Net income available to common shareholders before amortization of intangibles
	and excluding after-tax restructuring and merger-related expenses			47,661		71,292		73,544		53,221		46,798		192,496	84,456
	Average total shareholders' equity			2,777,306		2,801,455		2,770,416		2,744,936		2,662,513		2,782,729	2,619,996
	Less: average goodwill and other intangibles, net of def. tax liability			(1,143,522)		(1,145,882)		(1,148,171)		(1,150,184)		(1,150,549)		(1,145,841)	(1,138,621)
	Average tangible equity			$  1,633,784		$     1,655,573		$     1,622,245		$     1,594,752		$   1,511,964		$   1,636,888	$   1,481,375
Return on average tangible equity, excluding after-tax  restructuring and merger-related expenses (annualized)  (2)				11.57%		17.27%		18.39%		13.28%		12.31%		15.72%	7.62%
	Average tangible common equity			$  1,489,300		$     1,511,089		$     1,477,736		$   1,450,243		$  1,431,657		$   1,492,404	$    1,454,411
Return on average tangible common equity, excluding after-tax restructuring and merger-related expenses (annualized)  (2)				12.70%		18.92%		20.18%		14.60%		13.00%		17.25%	7.76%
Efficiency ratio:
	Non-interest expense			$     94,701		$     83,812		$      86,327		$     88,069		$     89,943		$     264,840	$    266,779
	Less: restructuring and merger-related expense			(4,467)		(1,222)		(851)		(484)		(3,608)		(6,540)	(9,241)
	Non-interest expense excluding restructuring and merger-related expense			90,234		82,590		85,476		87,585		86,335		258,300	257,538
	Net interest income on a fully taxable equivalent basis			116,355		116,906		117,517		120,790		121,705		350,777	363,208
	Non-interest income			32,755		36,112		33,208		32,705		34,612		102,076	95,481
	Net interest income on a fully taxable equivalent basis plus non-interest income			$   149,110		$    153,018		$ 150,725		$  153,495		$     156,317		$    452,853	$    458,689
	Efficiency ratio			60.52%		53.97%		56.71%		57.06%		55.23%		57.04%	56.15%
Net income available to common shareholders, excluding after-tax restructuring and merger-related expenses:
	Net income available to common shareholders			$   41,877		$     68,057		$      70,584		$     50,210		$      41,305		$     180,518	$   69,189
	Add: After-tax restructuring and merger-related expenses (1)			3,529		965		672		383		2,850		5,167	7,300
Net income available to common shareholders, excluding after-tax restructuring and merger-related expenses				$    45,406		$     69,022		$    71,256		$     50,593		$     44,155		$     185,685	$     76,489
Net income per common share - diluted, excluding after-tax restructuring and merger-related expenses:
	Net income per common share - diluted			$         0.64		$      1.01		$     1.05		$          0.75		$        0.61		$           2.71	$       1.03
	Add: After-tax restructuring and merger-related expenses per common share - diluted (1)			0.06		0.02		0.01		0.01		0.05		0.08	0.11
Net income per common share - diluted, excluding after-tax restructuring and merger-related expenses				$     0.70		$          1.03		$       1.06		$         0.76		$      0.66		$           2.79	$        1.14
				Period End
				Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,
				2021		2021		2021		2020		2020
Tangible book value per share:
	Total shareholders' equity			$2,723,983		$    2,780,836		$   2,785,522		$   2,756,737		$    2,732,966
	Less:  goodwill and other intangible assets, net of def. tax liability			(1,142,350)		(1,144,604)		(1,146,874)		(1,149,161)		(1,150,939)
	Less: preferred shareholder's equity			(144,484)		(144,484)		(144,484)		(144,484)		(144,529)
	Tangible common equity			1,437,149		1,491,748		1,494,164		1,463,092		1,437,498
	Common shares outstanding			63,838,549		65,970,149		67,282,134		67,254,706		67,216,012
Tangible book value per share				$     22.51		$     22.61		$       22.21		$       21.75		$        21.39
Tangible common equity to tangible assets:
	Total shareholders' equity			$  2,723,983		$   2,780,836		$    2,785,522		$    2,756,737		$    2,732,966
	Less:  goodwill and other intangible assets, net of def. tax liability			(1,142,350)		(1,144,604)		(1,146,874)		(1,149,161)		(1,150,939)
	Tangible equity			1,581,633		1,636,232		1,638,648		1,607,576		1,582,027
	Less: preferred shareholder's equity			(144,484)		(144,484)		(144,484)		(144,484)		(144,529)
	Tangible common equity			1,437,149		1,491,748		1,494,164		1,463,092		1,437,498
	Total assets			16,892,111		16,966,867		17,057,788		16,425,610		16,552,140
	Less:  goodwill and other intangible assets, net of def. tax liability			(1,142,350)		(1,144,604)		(1,146,874)		(1,149,161)		(1,150,939)
	Tangible assets			$15,749,761		$  15,822,263		$  15,910,914		$  15,276,449		$  15,401,201
Tangible equity to tangible assets				10.04%		10.34%		10.30%		10.52%		10.27%
Tangible common equity to tangible assets				9.12%		9.43%		9.39%		9.58%		9.33%
(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
				Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,		Sept. 30,
(unaudited, dollars in thousands, except shares and per share amounts)				2021		2021		2021		2020		2020		2021	2020
Pre-tax, pre-provision income:
	Income before provision for income taxes			$      55,059		$      89,180		$      91,317		$      64,557		$      48,974		$   235,557	$      80,521
	Add: provision for credit losses			(1,730)		(21,025)		(27,958)		(209)		16,288		(50,714)	107,949
Pre-tax, pre-provision income				$    53,329		$    68,155		$    63,359		$     64,348		$    65,262		$184,843	$   188,470
Pre-tax, pre-provision income, excluding restructuring and merger-related expenses:
	Income before provision for income taxes			$   55,059		$     89,180		$   91,317		$     64,557		$       48,974		$     235,557	$      80,521
	Add: provision for credit losses			(1,730)		(21,025)		(27,958)		(209)		16,288		(50,714)	107,949
	Add: restructuring and merger-related expenses			4,467		1,222		851		484		3,608		6,540	9,241
Pre-tax, pre-provision income, excluding restructuring and merger-related expenses				$     57,796		$   69,377		$     64,210		$      64,832		$      68,870		$   191,383	$    197,711
Return on average assets, excluding certain items (1):
	Income before provision for income taxes			$   55,059		$      89,180		$     91,317		$   64,557		$     48,974		$   235,557	$     80,521
	Add: provision for credit losses			(1,730)		(21,025)		(27,958)		(209)		16,288		(50,714)	107,949
	Add: restructuring and merger-related expenses			4,467		1,222		851		484		3,608		6,540	9,241
Pre-tax, pre-provision income, excluding restructuring and merger-related expenses				57,796		69,377		64,210		64,832		68,870		191,383	197,711
	Average total assets			$17,057,793		$  17,042,147		$   16,636,258		$  16,546,761		$   16,719,717		$16,921,888	$   16,407,765
Return on average assets, excluding certain items (annualized)  (1) (2)				1.34%		1.63%		1.57%		1.56%		1.64%		1.51%	1.61%
Return on average equity, excluding certain items (1):
	Income before provision for income taxes			$     55,059		$       89,180		$       91,317		$      64,557		$       48,974		$    235,557	$      80,521
	Add: provision for credit losses			(1,730)		(21,025)		(27,958)		(209)		16,288		(50,714)	107,949
	Add: restructuring and merger-related expenses			4,467		1,222		851		484		3,608		6,540	9,241
Pre-tax, pre-provision income, excluding restructuring and merger-related expenses				57,796		69,377		64,210		64,832		68,870		191,383	197,711
	Average total shareholders' equity			$  2,777,306		$     2,801,455		$     2,770,416		$     2,744,936		$     2,662,513		$ 2,782,729	$     2,619,996
Return on average equity, excluding certain items (annualized) (1) (2)				8.26%		9.93%		9.40%		9.40%		10.29%		9.20%	10.08%
Return on average tangible equity, excluding certain items (1):
	Income before provision for income taxes			$   55,059		$    89,180		$     91,317		$     64,557		$       48,974		$   235,557	$      80,521
	Add: provision for credit losses			(1,730)		(21,025)		(27,958)		(209)		16,288		(50,714)	107,949
	Add: amortization of intangibles			2,854		2,873		2,896		3,327		3,346		8,622	10,085
	Add: restructuring and merger-related expenses			4,467		1,222		851		484		3,608		6,540	9,241
Income before provision, restructuring and merger-related expenses and amortization of intangibles				60,650		72,250		67,106		68,159		72,216		200,005	207,796
	Average total shareholders' equity			2,777,306		2,801,455		2,770,416		2,744,936		2,662,513		2,782,729	2,619,996
	Less: average goodwill and other intangibles, net of def. tax liability			(1,143,522)		(1,145,882)		(1,148,171)		(1,150,184)		(1,150,549)		(1,145,841)	(1,138,621)
	Average tangible equity			$  1,633,784		$     1,655,573		$     1,622,245		$     1,594,752		$     1,511,964		$ 1,636,888	$    1,481,375
Return on average tangible equity, excluding certain items (annualized) (1) (2)				14.73%		17.50%		16.78%		17.00%		19.00%		16.34%	18.74%
	Average tangible common equity			$  1,489,300		$     1,511,089		$     1,477,736		$     1,450,243		$     1,431,657		$ 1,492,404	$     1,454,411
Return on average tangible common equity, excluding certain items (annualized) (1) (2)				16.16%		19.18%		18.42%		18.70%		20.07%		17.92%	19.08%
(1) Certain items excluded from the calculations consist of credit provisions, tax provisions and restructuring and merger-related expenses.
(2) The ratios are annualized by utilizing actual numbers of days in the quarter versus the year.

 

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SOURCE WesBanco, Inc.

FAQ

What were WesBanco's earnings for Q3 2021?

WesBanco reported net income of $41.9 million and diluted earnings per share of $0.64 for Q3 2021.

How did WesBanco's year-to-date earnings for 2021 compare to 2020?

For the nine months ended September 30, 2021, WesBanco's net income was $180.5 million, significantly higher than $69.2 million for the same period in 2020.

What was the growth in deposits for WesBanco in 2021?

WesBanco experienced a 10.0% year-over-year growth in total deposits as of September 30, 2021.

Did WesBanco engage in share repurchase activity in 2021?

Yes, WesBanco repurchased approximately 2.1 million shares of common stock during the third quarter of 2021.

How did WesBanco's net interest margin change in Q3 2021?

WesBanco's net interest margin for Q3 2021 was 3.08%, a decrease of 23 basis points from Q3 2020.