WesBanco Announces Third Quarter 2022 Financial Results

Rhea-AI Summary

WesBanco reported net income of $50.5 million and diluted EPS of $0.85 for Q3 2022, a rise from $41.9 million and $0.64 in Q3 2021. For the nine months ending September 30, 2022, net income was $132.3 million or $2.19 per diluted share, down from $180.5 million or $2.71 per share in 2021. The bank achieved a 6.5% year-over-year increase in total loans and a 3.33% net interest margin. Non-interest income fell 1.5% year over year, primarily due to lower mortgage banking income. WesBanco remains well-capitalized with a Tier I risk-based capital ratio of 12.51%.

Positive

• Net income for Q3 2022 increased to $50.5 million, a 20% rise year-over-year.
• Total loans grew 6.5% year-over-year, showcasing strong demand.
• Net interest margin improved to 3.33%, reflecting effective cash deployment.
• Non-interest expense rose only 1.8% year-over-year, indicating strong cost control.

Negative

• Net income for the nine months ended September 30, 2022 decreased by $48.2 million compared to the previous year.
• Non-interest income decreased by $0.5 million in Q3 2022 largely due to lower mortgage banking income.
• Commercial real estate payoffs increased significantly from $98 million to $173 million quarter-over-quarter.

WHEELING, W.Va., Oct. 25, 2022 /PRNewswire/ -- WesBanco, Inc. ("WesBanco") (Nasdaq: WSBC), a diversified, multi-state bank holding company, today announced net income and related earnings per share for the three and nine months ended September 30, 2022.  Net income available to common shareholders for the third quarter of 2022 was $50.5 million, with diluted earnings per share of $0.85, compared to $41.9 million and $0.64 per diluted share, respectively, for the third quarter of 2021.  For the nine months ended September 30, 2022, net income was $132.3 million, or $2.19 per diluted share, compared to $180.5 million, or $2.71 per diluted share, for the 2021 period, which included a release of provision for credit losses of $50.7 million, or $40.5 million net of tax.  Net income available to common shareholders, excluding after-tax restructuring and merger-related expenses, for the three months ended September 30, 2022, was $50.6 million, or $0.85 per diluted share, as compared to $45.4 million and $0.70 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, 2022 was $133.7 million, or $2.21 per diluted share, as compared to $185.7 million, or $2.79 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,
			2022				2021					2022				2021
(unaudited, dollars in thousands, except per share amounts)			Net Income		Diluted Earnings Per Share		Net Income		Diluted Earnings Per Share			Net Income		Diluted Earnings Per Share		Net Income		Diluted Earnings Per Share
Net income available to common shareholders (Non-GAAP)(1)			$       50,554		$       0.85		$       45,406		$       0.70			$     133,661		$       2.21		$     185,685		$       2.79
Less: After-tax restructuring and merger- related expenses			(52)		-		(3,529)		(0.06)			(1,352)		(0.02)		(5,167)		(0.08)
Net income available to common shareholders (GAAP)			$       50,502		$       0.85		$       41,877		$       0.64			$     132,309		$       2.19		$     180,518		$       2.71
(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, 2022:

• Third quarter net interest margin of 3.33% increased 30 basis points sequentially, and, when excluding purchase accounting and Small Business Administration Payroll Protection Program ("SBA PPP") loan accretion, it increased 34 basis points sequentially to 3.27%
• Reflecting the pricing advantage of our robust legacy deposit base and growth in non-interest bearing demand deposits, year-over-year total deposits increased 8 basis points to 0.17%
• Reflecting the strength of our markets and lending teams, total loan growth was 6.5% year-over-year, and 0.8%, or 3.2% annualized, when compared to June 30, 2022, excluding SBA PPP loans
• Deposit growth, excluding certificates of deposit ("CDs"), was 3.2% year-over-year and essentially flat compared to the second quarter, driven by growth in non-interest bearing demand deposits and savings accounts
• Strong discretionary cost control as evidenced by non-interest expenses increasing just 1.8% year-over-year, excluding restructuring and merger-related expenses
• 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)
• WesBanco remains well-capitalized with solid liquidity and a strong balance sheet
• Returns on average assets and tangible equity were 1.19% and 15.39%, respectively

"We are pleased with WesBanco's performance during the third quarter of 2022, as we continued to deliver loan growth, control discretionary expenses, and manage the costs of our funding sources," said Todd F. Clossin, President and Chief Executive Officer of WesBanco.  "We again reported strong, broad-based, year-over-year loan growth during the quarter, despite elevated commercial real estate loan payoffs.  Furthermore, our commercial loan pipeline remains robust.  Our core funding advantage of our legacy markets continues to provide us with strong, low cost deposit flows during a time of quickly rising interest rates.  And, our historic strengths of risk management and loan underwriting remain evident through our solid credit quality measures."

Mr. Clossin added, "For more than 150 years, we have been a source of stability, strength and trust for our customers, communities, employees, and shareholders.  The success of our operational strategies implemented the past few years continues to be evident, and combined with our core strengths, will allow us to succeed regardless of the operating environment."

Balance Sheet
Loan growth for the third quarter of 2022 reflects strong performance by our commercial and consumer lending teams and more 1-to-4 family residential mortgages retained on the balance sheet, partially offset by the continuation of both SBA PPP loan forgiveness and elevated commercial real estate payoffs.  As of September 30, 2022, total portfolio loans of $10.3 billion, when excluding SBA PPP loans, driven by strong growth across all loan categories and markets, increased 6.5% year-over-year, and 0.8%, or 3.2% annualized, when compared to June 30, 2022.  While down from the prior year period, commercial real estate payoffs increased to $173 million during the third quarter, as compared to $98 million in the second quarter.  The third quarter of 2022 included the forgiveness of approximately $14 million of SBA PPP loans, with approximately $13 million remaining in the loan portfolio (net of deferred fees).

As of September 30, 2022, total deposits of $13.4 billion increased $21.1 million year-over-year due primarily to increased net personal savings across the other deposit categories, which more than offset a $362.7 million year-over-year reduction in CDs.  Deposits, excluding CDs, were essentially flat to the quarter ending June 30, 2022 but increased 3.2% year-over-year, driven by a 1.6% increase in total demand deposits, which represent approximately 59% of total deposits, and a 10.2% increase in savings accounts.

Credit Quality
As of September 30, 2022, total loans past due, non-performing loans, and non-performing assets as percentages of the loan portfolio and total assets have remained relatively low, from a historical perspective, and consistent throughout the last five quarters.  In addition, criticized and classified loans as a percent of the loan portfolio decreased 178 basis points year-over-year to 2.43%.  For the third quarter, net loan charge-offs to average loans totaled $1.1 million, as compared to $0.8 million in the prior year period.  The allowance for credit losses to total portfolio loans at September 30, 2022 was $114.6 million, or 1.11% of total loans, reflecting a slight increase in projected future unemployment rates, offset by continued improvements in COVID-impacted borrowers.  During the prior year three- and nine- month periods ending September 30, 2021, we recorded negative provisions for credit losses of $1.7 million and $50.7 million, respectively, due to significantly improved macroeconomic forecasts and other factors, as compared to negative provisions of $0.5 million and $4.8 million, respectively, in the current year.

Net Interest Margin and Income
The net interest margin of 3.33% for the third quarter of 2022 increased 30 basis points sequentially, which reflects the 225 basis point increase in the federal fund rate from March through July, as well as our successful deployment of excess cash into higher-yielding loans.  Variable rate securities, which represent 18% of the total securities portfolio also contributed to the margin.  We remain focused on controlling the costs of our various funding sources, which is enhanced by the pricing advantage of our robust legacy deposit base.  Deposit funding costs increased just 13 basis points year-over-year to 27 basis points for the third quarter of 2022, or 17 basis points when including non-interest bearing deposits.  This reflects a total deposit beta of just 4%, when compared to the 225 basis point increase in the federal fund rate through July of this year.  Further, total deposit funding costs also increased 8 basis points on a sequential quarter basis.  Accretion from acquisitions benefited the third quarter net interest margin by 5 basis points, as compared to 10 basis points in the prior year period.  Lastly, the forgiveness of SBA PPP loans benefited the third quarter of 2022 net interest margin by a net 1 basis point, as compared to a net 14 basis points in the prior year period.

Net interest income increased $9.2 million, or 8.0%, during the third quarter of 2022, as compared to the same quarter of 2021, reflecting loan growth and the benefit of rising rates on loan and securities yields, which more than offset lower accretion from purchase accounting and lower SBA PPP-related loan income.  For the nine months ended September 30, 2022, net interest income decreased $3.2 million, or 0.9%, primarily due to the reasons discussed for the three-month period comparison.

Non-Interest Income
For the third quarter of 2022, non-interest income of $32.3 million decreased $0.5 million, or 1.5%, from the third quarter of 2021, driven primarily by lower mortgage banking income.  Other income of $5.5 million increased $1.5 million, or 37.4%, year-over-year due primarily to higher commercial loan swap-related income.  Net gain on other real estate owned and other assets increased $1.3 million year-over-year to $2.0 million due to the gain on the sale of the underlying equity investments held by WesBanco Community Development Corporation.  Mortgage banking income decreased $3.3 million year-over-year due to a reduction in residential mortgage originations and our retention of more residential mortgages on the balance sheet.  Third quarter mortgage originations decreased 38% year-over-year to $235 million, with approximately 73% retained, as compared to 63% last year.

Non-interest income, for the nine months ended September 30, 2022, decreased $12.5 million, or 12.2%, to $89.6 million.  In addition to the items discussed above, service charges on deposits increased $3.7 million year-over-year to $19.5 million, reflective of increased general consumer spending.  Bank-owned life insurance of $8.3 million increased $2.2 million year-over-year due to higher death benefits and the impact of new policies purchased during the third quarter of 2021.  The net loss on other real estate owned and other assets of $0.1 million also reflects the change in the fair value of underlying equity investments held by WesBanco Community Development Corporation primarily driven by the decline in the equity market during the second quarter of 2022, as compared to a net gain of $4.2 million for the same investment during the first nine months of 2021.

Non-Interest Expense
Excluding restructuring and merger-related expenses, non-interest expense for the three months ended September 30, 2022 totaled $91.9 million, an increase of only 1.8% year-over-year, reflecting discretionary cost control.  As compared to the second quarter, the increase in expenses reflects the hiring of additional commercial and residential lenders and hourly wage increases, as noted in our prior quarterly comments.  Salaries and wages increased $4.8 million, or 12.1%, compared to the prior year period due to higher salary expense related to normal merit increases, higher staffing levels, and hourly wage increase implemented during the third quarter.  FDIC insurance of $2.4 million increased $1.2 million from last year due primarily to the benefit to last year's FDIC insurance calculation from the large negative credit loss provision recognized during 2021.

On a similar basis, non-interest expense during the first nine months of 2022 increased $6.5 million, or 2.5%, compared to the prior year period, due primarily to higher salaries and wages and higher FDIC insurance, as described above, partially offset by lower employee benefits from lower deferred compensation expense and discretionary cost control.

Capital
WesBanco continues to maintain what we believe are strong regulatory capital ratios, as both consolidated and bank-level regulatory capital ratios are well above the applicable "well-capitalized" standards promulgated by bank regulators and the BASEL III capital standards.  At September 30, 2022, Tier I leverage was 9.68%, Tier I risk-based capital ratio was 12.51%, common equity Tier 1 capital ratio ("CET 1") was 11.35%, and total risk-based capital was 15.37%.

During the third quarter of 2022, WesBanco repurchased 409 thousand shares of its outstanding common stock on the open market at a total cost of $14.2 million, or $34.64 per share.  As of September 30, 2022, approximately 1.3 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 third quarter of 2022 at 10:00 a.m. ET on Wednesday, October 26, 2022.  Interested parties can access the live webcast of the conference call through the Investor Relations section of the Company's website, www.wesbanco.com.  Participants can also listen to the conference call by dialing 888-347-6607, 855-669-9657 for Canadian callers, or 412-902-4290 for international callers, and asking to be joined into the WesBanco call.  Please log in or dial in at least 10 minutes prior to the start time to ensure a connection.

A replay of the conference call will be available by dialing 877-344-7529, 855-669-9658 for Canadian callers, or 412-317-0088 for international callers, and providing the access code of 10162209.  The replay will begin at approximately 12:00 p.m. ET on October 26, 2022 and end at 12 a.m. ET on November 9, 2022.  An archive of the webcast will be available for one year on the Investor Relations section of the Company's website (www.wesbanco.com).

Forward-Looking Statements
Forward-looking statements in this report relating to WesBanco's plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  The information contained in this report should be read in conjunction with WesBanco's Form 10-K for the year ended December 31, 2021 and documents subsequently filed by WesBanco with the Securities and Exchange Commission ("SEC"), including WesBanco's Form 10-Q for the quarters ended March 31, 2022 and June 30, 2022, which are available at the SEC's website, www.sec.gov or at WesBanco's website, www.WesBanco.com.  Investors are cautioned that forward-looking statements, which are not historical fact, involve risks and uncertainties, including those detailed in WesBanco's most recent Annual Report on Form 10-K filed with the SEC under "Risk Factors" in Part I, Item 1A.  Such statements are subject to important factors that could cause actual results to differ materially from those contemplated by such statements, including, without limitation, the effects of changing regional and national economic conditions including the effects of the COVID-19 pandemic; changes in interest rates, spreads on earning assets and interest-bearing liabilities, and associated interest rate sensitivity; sources of liquidity available to WesBanco and its related subsidiary operations; potential future credit losses and the credit risk of commercial, real estate, and consumer loan customers and their borrowing activities; actions of the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Consumer Financial Protection Bureau, the SEC, the Financial Institution Regulatory Authority, the Municipal Securities Rulemaking Board, the Securities Investors Protection Corporation, and other regulatory bodies; potential legislative and federal and state regulatory actions and reform, including, without limitation, the impact of the implementation of the Dodd-Frank Act; adverse decisions of federal and state courts; fraud, scams and schemes of third parties; cyber-security breaches; competitive conditions in the financial services industry; rapidly changing technology affecting financial services; marketability of debt instruments and corresponding impact on fair value adjustments; and/or other external developments materially impacting WesBanco's operational and financial performance.  WesBanco does not assume any duty to update forward-looking statements.

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

About WesBanco, Inc.
Founded in 1870, WesBanco, Inc. (www.wesbanco.com) is a diversified and balanced financial services company that delivers large bank capabilities with a community bank feel.  Our distinct long-term growth strategies are built upon unique sustainable advantages permitting us to span six states with meaningful market share.  Built upon our 'Better Banking Pledge', our customer-centric service culture is focused on growing long-term relationships by pledging to serve all personal and business customer needs efficiently and effectively.  Furthermore, our strong financial performance and employee focus has earned us recognition by Forbes as both one of America's Best Banks and Best Midsize Employers – the only midsize bank making the top ten of both rankings.  In addition to a full range of online and mobile banking options and a full-suite of commercial products and services, WesBanco provides trust, wealth management, securities brokerage, and private banking services through our century-old Trust and Investment Services department, with approximately $4.6 billion of assets under management (as of September 30, 2022).  WesBanco's banking subsidiary, WesBanco Bank, Inc., operates 194 financial centers in the states of Indiana, Kentucky, Maryland, Ohio, Pennsylvania, and West Virginia.  Additionally, WesBanco operates an insurance agency, WesBanco Insurance Services, Inc., and a full service broker/dealer, WesBanco Securities, Inc.

 

WESBANCO, INC.
Consolidated Selected Financial Highlights														Page 5
(unaudited, dollars in thousands, except shares and per share amounts)
				For the Three Months Ended						For the Nine Months Ended
Statement of Income				September 30,						September 30,
Interest and dividend income				2022		2021		% Change		2022		2021		% Change
Loans, including fees				$       109,562		$       103,206		6.2		$       299,094		$       318,532		(6.1)
Interest and dividends on securities:
Taxable				17,531		13,481		30.0		47,468		37,467		26.7
Tax-exempt				4,916		4,063		21.0		13,965		11,925		17.1
Total interest and dividends on securities				22,447		17,544		27.9		61,433		49,392		24.4
Other interest income				2,108		628		235.7		4,211		1,836		129.4
Total interest and dividend income				134,117		121,378		10.5		364,738		369,760		(1.4)
Interest expense
Interest bearing demand deposits				2,953		815		262.3		4,917		2,859		72.0
Money market deposits				968		350		176.6		1,672		1,488		12.4
Savings deposits				1,067		244		337.3		1,662		769		116.1
Certificates of deposit				958		1,726		(44.5)		3,347		6,122		(45.3)
Total interest expense on deposits				5,946		3,135		89.7		11,598		11,238		3.2
Federal Home Loan Bank borrowings				348		1,192		(70.8)		1,334		5,387		(75.2)
Other short-term borrowings				147		33		345.5		244		192		27.1
Subordinated debt and junior subordinated debt				3,175		1,743		82.2		7,123		5,336		33.5
Total interest expense				9,616		6,103		57.6		20,299		22,153		(8.4)
Net interest income				124,501		115,275		8.0		344,439		347,607		(0.9)
Provision for credit losses				(535)		(1,730)		69.1		(4,785)		(50,714)		90.6
Net interest income after provision for credit losses				125,036		117,005		6.9		349,224		398,321		(12.3)
Non-interest income
Trust fees				6,517		7,289		(10.6)		20,879		22,069		(5.4)
Service charges on deposits				6,942		6,050		14.7		19,520		15,820		23.4
Electronic banking fees				4,808		5,427		(11.4)		15,307		14,853		3.1
Net securities brokerage revenue				2,491		1,965		26.8		6,969		5,318		31.0
Bank-owned life insurance				1,999		2,656		(24.7)		8,263		6,072		36.1
Mortgage banking income				1,257		4,563		(72.5)		4,508		16,656		(72.9)
Net securities gains/(losses)				656		(15)		NM		(1,176)		740		(258.9)
Net gain/(loss) on other real estate owned and other assets				2,040		785		159.9		(68)		4,974		(101.4)
Other income				5,546		4,035		37.4		15,420		15,574		(1.0)
Total non-interest income				32,256		32,755		(1.5)		89,622		102,076		(12.2)
Non-interest expense
Salaries and wages				44,271		39,497		12.1		124,421		113,822		9.3
Employee benefits				10,693		10,658		0.3		28,574		30,191		(5.4)
Net occupancy				6,489		6,825		(4.9)		19,843		20,430		(2.9)
Equipment and software				8,083		7,609		6.2		23,795		21,654		9.9
Marketing				2,377		1,848		28.6		7,546		6,033		25.1
FDIC insurance				2,391		1,227		94.9		5,850		2,690		117.5
Amortization of intangible assets				2,560		2,854		(10.3)		7,738		8,622		(10.3)
Restructuring and merger-related expense				66		4,467		(98.5)		1,712		6,540		(73.8)
Other operating expenses				15,011		19,716		(23.9)		47,032		54,858		(14.3)
Total non-interest expense				91,941		94,701		(2.9)		266,511		264,840		0.6
Income before provision for income taxes				65,351		55,059		18.7		172,335		235,557		(26.8)
Provision for income taxes				12,318		10,651		15.7		32,432		47,445		(31.6)
Net Income				53,033		44,408		19.4		139,903		188,112		(25.6)
Preferred stock dividends				2,531		2,531		-		7,594		7,594		-
Net income available to common shareholders				$         50,502		$         41,877		20.6		$       132,309		$       180,518		(26.7)
Taxable equivalent net interest income				$      125,808		$      116,355		8.1		$      348,151		$      350,777		(0.7)
Per common share data
Net income per common share - basic				$              0.85		$              0.64		32.8		$              2.19		$              2.72		(19.5)
Net income per common share - diluted				0.85		0.64		32.8		2.19		2.71		(19.2)
Net income per common share - diluted, excluding certain items (1)(2)				0.85		0.70		21.4		2.21		2.79		(20.8)
Dividends declared				0.34		0.33		3.0		1.02		0.99		3.0
Book value (period end)				37.96		40.41		(6.1)		37.96		40.41		(6.1)
Tangible book value (period end) (1)				18.84		22.51		(16.3)		18.84		22.51		(16.3)
Average common shares outstanding - basic				59,549,244		64,931,764		(8.3)		60,336,637		66,354,750		(9.1)
Average common shares outstanding - diluted				59,697,676		65,065,848		(8.3)		60,489,248		66,510,357		(9.1)
Period end common shares outstanding				59,304,505		63,838,549		(7.1)		59,304,505		63,838,549		(7.1)
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,
						2022		2021		% Change
Return on average assets						1.04	%	1.43	%	(27.27)	%
Return on average assets, excluding
after-tax restructuring and merger-related expenses (1)						1.05		1.47		(28.57)
Return on average equity						6.93		8.67		(20.07)
Return on average equity, excluding
after-tax restructuring and merger-related expenses (1)						7.01		8.92		(21.41)
Return on average tangible equity (1)						13.09		15.30		(14.44)
Return on average tangible equity, excluding
after-tax restructuring and merger-related expenses (1)						13.22		15.72		(15.90)
Return on average tangible common equity (1)						14.58		16.78		(13.11)
Return on average tangible common equity, excluding
after-tax restructuring and merger-related expenses (1)						14.72		17.25		(14.67)
Yield on earning assets (2)						3.29		3.36		(2.08)
Cost of interest bearing liabilities						0.29		0.31		(6.45)
Net interest spread (2)						3.00		3.05		(1.64)
Net interest margin (2)						3.11		3.16		(1.58)
Efficiency (1) (2)						60.49		57.04		6.05
Average loans to average deposits						72.82		80.01		(8.99)
Annualized net loan charge-offs/average loans						0.02		0.01		100.00
Effective income tax rate						18.82		20.14		(6.55)
						For the Three Months Ended
						Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,
						2022		2022		2022		2021		2021
Return on average assets						1.19	%	0.95	%	0.99	%	1.21	%	0.97	%
Return on average assets, excluding
after-tax restructuring and merger-related expenses (1)						1.19		0.95		1.02		1.21		1.06
Return on average equity						8.05		6.43		6.35		7.56		5.98
Return on average equity, excluding
after-tax restructuring and merger-related expenses (1)						8.06		6.43		6.54		7.58		6.49
Return on average tangible equity (1)						15.39		12.35		11.67		13.62		10.72
Return on average tangible equity, excluding
after-tax restructuring and merger-related expenses (1)						15.41		12.36		12.01		13.66		11.57
Return on average tangible common equity (1)						17.23		13.80		12.90		15.00		11.76
Return on average tangible common equity, excluding
after-tax restructuring and merger-related expenses (1)						17.25		13.82		13.27		15.04		12.70
Yield on earning assets (2)						3.59		3.20		3.07		3.10		3.24
Cost of interest bearing liabilities						0.41		0.26		0.19		0.20		0.25
Net interest spread (2)						3.18		2.94		2.88		2.90		2.99
Net interest margin (2)						3.33		3.03		2.95		2.97		3.08
Efficiency (1) (2)						58.13		61.91		61.73		61.99		60.52
Average loans to average deposits						75.01		72.36		71.05		72.61		75.46
Annualized net loan charge-offs and recoveries /average loans						0.04		0.00		0.00		0.04		0.03
Effective income tax rate						18.85		19.35		18.26		18.32		19.34
Trust assets, market value at period end						$   4,622,878		$   4,803,043		$   5,412,342		$   5,644,975		$   5,464,159
(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, 2021
Assets					2022		2021		% Change	2021	to Sept. 30, 2022
Cash and due from banks					$       212,341		$       201,505		5.4	$          157,046	35.2
Due from banks - interest bearing					166,215		919,611		(81.9)	1,094,312	(84.8)
Securities:
	Equity securities, at fair value				11,964		13,451		(11.1)	13,466	(11.2)
	Available-for-sale debt securities, at fair value				2,645,748		2,986,803		(11.4)	3,013,462	(12.2)
	Held-to-maturity debt securities (fair values of $1,065,833; $978,494
	and $1,028,452, respectively)				1,262,467		953,920		32.3	1,004,823	25.6
		Allowance for credit losses, held-to-maturity debt securities			(225)		(257)		12.5	(268)	16.0
	Net held-to-maturity debt securities				1,262,242		953,663		32.4	1,004,555	25.7
		Total securities			3,919,954		3,953,917		(0.9)	4,031,483	(2.8)
Loans held for sale					12,887		32,308		(60.1)	25,277	(49.0)
Portfolio loans:
	Commercial real estate				5,831,384		5,657,886		3.1	5,538,968	5.3
	Commercial and industrial				1,516,856		1,707,214		(11.2)	1,590,320	(4.6)
	Residential real estate				2,010,344		1,655,229		21.5	1,721,378	16.8
	Home equity				609,765		607,735		0.3	605,682	0.7
	Consumer				309,313		285,101		8.5	277,130	11.6
Total portfolio loans, net of unearned income					10,277,662		9,913,165		3.7	9,733,478	5.6
Allowance for credit losses - loans					(114,584)		(136,605)		16.1	(121,622)	5.8
		Net portfolio loans			10,163,078		9,776,560		4.0	9,611,856	5.7
Premises and equipment, net					221,355		232,134		(4.6)	229,016	(3.3)
Accrued interest receivable					63,375		61,895		2.4	60,844	4.2
Goodwill and other intangible assets, net					1,143,896		1,154,468		(0.9)	1,151,634	(0.7)
Bank-owned life insurance					350,806		349,735		0.3	350,359	0.1
Other assets					350,840		209,978		67.1	215,298	63.0
Total Assets					$  16,604,747		$  16,892,111		(1.7)	$    16,927,125	(1.9)
Liabilities
Deposits:
	Non-interest bearing demand				$    4,736,722		$    4,531,958		4.5	$      4,590,895	3.2
	Interest bearing demand				3,201,714		3,283,444		(2.5)	3,380,056	(5.3)
	Money market				1,772,481		1,765,480		0.4	1,739,750	1.9
	Savings deposits				2,741,937		2,488,180		10.2	2,562,510	7.0
	Certificates of deposit				991,512		1,354,252		(26.8)	1,292,652	(23.3)
		Total deposits			13,444,366		13,423,314		0.2	13,565,863	(0.9)
Federal Home Loan Bank borrowings					56,998		208,940		(72.7)	183,920	(69.0)
Other short-term borrowings					127,983		152,546		(16.1)	141,893	(9.8)
Subordinated debt and junior subordinated debt					281,179		167,711		67.7	132,860	111.6
		Total borrowings			466,160		529,197		(11.9)	458,673	1.6
Accrued interest payable					4,358		2,495		74.7	1,901	129.2
Other liabilities					294,211		213,122		38.0	207,522	41.8
Total Liabilities					14,209,095		14,168,128		0.3	14,233,959	(0.2)
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; 59,304,505, 63,838,549 and 62,307,245
	shares outstanding, respectively				141,834		141,834		-	141,834	-
Capital surplus					1,634,280		1,634,086		0.0	1,635,642	(0.1)
Retained earnings					1,048,532		946,746		10.8	977,765	7.2
Treasury stock (8,776,801, 4,242,757 and 5,774,061 shares - at cost, respectively)					(305,033)		(146,102)		(108.8)	(199,759)	(52.7)
Accumulated other comprehensive (loss)/income					(266,640)		4,463		NM	(5,120)	NM
Deferred benefits for directors					(1,805)		(1,528)		(18.1)	(1,680)	(7.4)
Total Shareholders' Equity					2,395,652		2,723,983		(12.1)	2,693,166	(11.0)
Total Liabilities and Shareholders' Equity					$  16,604,747		$  16,892,111		(1.7)	$    16,927,125	(1.9)
NM = Not Meaningful

 

WESBANCO, INC.
Consolidated Selected Financial Highlights								Page 8
(unaudited, dollars in thousands, except shares)
Balance sheet					September 30,		June 30,
Assets					2022		2022	% Change
Cash and due from banks					$      212,341		$      186,534	13.8
Due from banks - interest bearing					166,215		263,475	(36.9)
Securities:
	Equity securities, at fair value				11,964		11,413	4.8
	Available-for-sale, at fair value				2,645,748		2,884,651	(8.3)
	Held-to-maturity (fair values of $1,065,833 and $1,153,594 , respectively)				1,262,467		1,281,295	(1.5)
		Allowance for credit losses, held-to-maturity debt securities			(225)		(265)	15.1
	Net held-to-maturity debt securities				1,262,242		1,281,030	(1.5)
		Total securities			3,919,954		4,177,094	(6.2)
Loans held for sale					12,887		17,560	(26.6)
Portfolio Loans:
	Commercial real estate				5,831,384		5,852,564	(0.4)
	Commercial and industrial				1,516,856		1,549,768	(2.1)
	Residential real estate				2,010,344		1,907,875	5.4
	Home equity				609,765		597,845	2.0
	Consumer				309,313		300,637	2.9
Total portfolio loans, net of unearned income					10,277,662		10,208,689	0.7
Allowance for credit losses - loans					(114,584)		(117,403)	2.4
	Net portfolio loans				10,163,078		10,091,286	0.7
Premises and equipment, net					221,355		216,293	2.3
Accrued interest receivable					63,375		61,918	2.4
Goodwill and other intangible assets, net					1,143,896		1,146,456	(0.2)
Bank-owned life insurance					350,806		348,807	0.6
Other assets					350,840		290,201	20.9
Total Assets					$ 16,604,747		$ 16,799,624	(1.2)
Liabilities
Deposits:
	Non-interest bearing demand				$   4,736,722		$   4,738,830	(0.0)
	Interest bearing demand				3,201,714		3,258,871	(1.8)
	Money market				1,772,481		1,770,859	0.1
	Savings deposits				2,741,937		2,695,437	1.7
	Certificates of deposit				991,512		1,105,305	(10.3)
		Total deposits			13,444,366		13,569,302	(0.9)
Federal Home Loan Bank borrowings					56,998		122,650	(53.5)
Other short-term borrowings					127,983		147,964	(13.5)
Subordinated debt and junior subordinated debt					281,179		280,910	0.1
		Total borrowings			466,160		551,524	(15.5)
Accrued interest payable					4,358		2,815	54.8
Other liabilities					294,211		208,032	41.4
Total liabilities					14,209,095		14,331,673	(0.9)
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;
	59,304,505 and 59,698,788 shares outstanding, respectively				141,834		141,834	-
Capital surplus					1,634,280		1,632,617	0.1
Retained earnings					1,048,532		1,018,209	3.0
Treasury stock (8,776,801 and 8,382,518  shares - at cost)					(305,033)		(291,337)	(4.7)
Accumulated other comprehensive loss					(266,640)		(176,061)	(51.4)
Deferred benefits for directors					(1,805)		(1,795)	(0.6)
Total Shareholders' Equity					2,395,652		2,467,951	(2.9)
Total Liabilities and Shareholders' Equity					$ 16,604,747		$ 16,799,624	(1.2)

 

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,
					2022				2021				2022				2021
					Average	Average			Average	Average			Average	Average			Average	Average
Assets					Balance	Rate			Balance	Rate			Balance	Rate			Balance	Rate
Due from banks - interest bearing					$       375,136	2.09	%		$       936,084	0.16	%		$       757,325	0.67	%		$       803,713	0.12	%
Loans, net of unearned income (1)					10,224,494	4.25			10,164,279	4.03			9,958,318	4.02			10,562,879	4.03
Securities: (2)
Taxable					3,548,271	1.96			3,210,878	1.67			3,472,211	1.83			2,856,041	1.75
Tax-exempt (3)					823,133	3.00			650,397	3.14			782,141	3.02			610,449	3.31
Total securities					4,371,404	2.16			3,861,275	1.91			4,254,352	2.05			3,466,490	2.03
Other earning assets					12,808	4.05			23,646	4.23			13,840	3.89			28,494	5.11
Total earning assets (3)					14,983,842	3.59	%		14,985,284	3.24	%		14,983,835	3.29	%		14,861,576	3.36	%
Other assets					1,887,813				2,072,509				1,960,951				2,060,312
Total Assets					$  16,871,655				$  17,057,793				$  16,944,786				$  16,921,888
Liabilities and Shareholders' Equity
Interest bearing demand deposits					$    3,306,339	0.35	%		$    3,297,702	0.10	%		$    3,363,152	0.20	%		$    3,139,992	0.12	%
Money market accounts					1,780,338	0.22			1,791,494	0.08			1,785,703	0.13			1,764,462	0.11
Savings deposits					2,714,684	0.16			2,471,593	0.04			2,681,084	0.08			2,393,066	0.04
Certificates of deposit					1,049,694	0.36			1,403,812	0.49			1,154,812	0.39			1,501,857	0.54
Total interest bearing deposits					8,851,055	0.27			8,964,601	0.14			8,984,751	0.17			8,799,377	0.17
Federal Home Loan Bank borrowings					113,530	1.22			289,334	1.63			138,766	1.29			388,518	1.85
Repurchase agreements					148,179	0.39			136,028	0.10			150,126	0.22			152,450	0.17
Subordinated debt and junior subordinated debt					281,002	4.48			188,276	3.67			237,046	4.02			191,018	3.73
Total interest bearing liabilities (4)					9,393,766	0.41	%		9,578,239	0.25	%		9,510,689	0.29	%		9,531,363	0.31	%
Non-interest bearing demand deposits					4,779,216				4,504,332				4,690,218				4,402,487
Other liabilities					209,735				197,916				193,070				205,309
Shareholders' equity					2,488,938				2,777,306				2,550,809				2,782,729
Total Liabilities and Shareholders' Equity					$  16,871,655				$  17,057,793				$  16,944,786				$  16,921,888
Taxable equivalent net interest spread						3.18	%			2.99	%			3.00	%			3.05	%
Taxable equivalent net interest margin						3.33	%			3.08	%			3.11	%			3.16	%
(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 $1.4 million and $6.8 million for the three months ended September 30, 2022 and 2021, respectively, and were $8.0 million and $21.5 million for the nine months ended September 30, 2022 and 2021, respectively. As part of loan fees, PPP loan fees were $0.6 million and $7.1 million for the three months ended September 30, 2022 and 2021, respectively and $5.7 million and $21.0 million for the nine months ended September 30, 2022 and 2021, respectively.  Additionally, loan accretion included in interest income on loans acquired from prior acquisitions was $1.7 million and $3.0 million for the three months ended September 30, 2022 and 2021, respectively. and $6.2 million and $10.3 million for the nine months ended September 30, 2022 and 2021, respectively.
(2) Average yields on available-for-sale securities are calculated based on amortized cost.
(3) Taxable equivalent basis is calculated on tax-exempt securities using a rate of 21% for each period presented.
(4) Accretion on interest bearing liabilities acquired from prior acquisitions was $0.2 million and $0.7 million for the three months ended September 30, 2022 and 2021, respectively, and $0.9 million and $2.6 million for the nine months ended September 30, 2022 and 2021, respectively.

 

WESBANCO, INC.
Consolidated Selected Financial Highlights												Page 10
(unaudited, dollars in thousands, except shares and per share amounts)
				Quarter Ended
Statement of Income				Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,
Interest and dividend income				2022		2022		2022		2021		2021
	Loans, including fees			$       109,562		$         96,412		$         93,121		$         97,432		$       103,206
	Interest and dividends on securities:
		Taxable		17,531		15,825		14,112		12,934		13,481
		Tax-exempt		4,916		4,706		4,344		4,236		4,063
			Total interest and dividends on securities	22,447		20,531		18,456		17,170		17,544
	Other interest income			2,108		1,504		597		605		628
Total interest and dividend income				134,117		118,447		112,174		115,207		121,378
Interest expense
	Interest bearing demand deposits			2,953		1,153		811		810		815
	Money market deposits			968		383		321		315		350
	Savings deposits			1,067		330		264		261		244
	Certificates of deposit			958		1,116		1,273		1,501		1,726
			Total interest expense on deposits	5,946		2,982		2,669		2,887		3,135
	Federal Home Loan Bank borrowings			348		411		575		780		1,192
	Other short-term borrowings			147		48		48		35		33
	Subordinated debt and junior subordinated debt			3,175		2,778		1,171		1,178		1,743
			Total interest expense	9,616		6,219		4,463		4,880		6,103
Net interest income				124,501		112,228		107,711		110,327		115,275
	Provision for credit losses			(535)		(812)		(3,438)		(13,559)		(1,730)
Net interest income after provision for credit losses				125,036		113,040		111,149		123,886		117,005
Non-interest income
	Trust fees			6,517		6,527		7,835		7,441		7,289
	Service charges on deposits			6,942		6,487		6,090		6,592		6,050
	Electronic banking fees			4,808		5,154		5,345		4,465		5,427
	Net securities brokerage revenue			2,491		2,258		2,220		1,579		1,965
	Bank-owned life insurance			1,999		2,384		3,881		2,864		2,656
	Mortgage banking income			1,257		1,328		1,923		2,872		4,563
	Net securities gains/(losses)			656		(1,183)		(650)		372		(15)
	Net gain/(loss) on other real estate owned and other assets			2,040		(1,302)		(806)		(158)		785
	Other income			5,546		5,330		4,544		4,682		4,035
			Total non-interest income	32,256		26,983		30,382		30,709		32,755
Non-interest expense
	Salaries and wages			44,271		41,213		38,937		40,420		39,497
	Employee benefits			10,693		8,722		9,158		10,842		10,658
	Net occupancy			6,489		6,119		7,234		6,413		6,825
	Equipment and software			8,083		7,702		8,011		8,352		7,609
	Marketing			2,377		2,749		2,421		2,601		1,848
	FDIC insurance			2,391		1,937		1,522		1,460		1,227
	Amortization of intangible assets			2,560		2,579		2,598		2,834		2,854
	Restructuring and merger-related expense			66		52		1,593		177		4,467
	Other operating expenses			15,011		15,946		16,074		15,204		19,716
			Total non-interest expense	91,941		87,019		87,548		88,303		94,701
Income before provision for income taxes				65,351		53,004		53,983		66,292		55,059
	Provision for income taxes			12,318		10,256		9,859		12,144		10,651
Net Income				53,033		42,748		44,124		54,148		44,408
Preferred stock dividends				2,531		2,531		2,531		2,531		2,531
Net income available to common shareholders				$         50,502		$         40,217		$         41,593		$         51,617		$         41,877
Taxable equivalent net interest income				$      125,808		$      113,479		$      108,866		$      111,453		$      116,355
Per common share data
Net income per common share - basic				$              0.85		$              0.67		$              0.68		$              0.82		$              0.64
Net income per common share - diluted				0.85		0.67		0.68		0.82		0.64
Net income per common share - diluted, excluding certain items (1)(2)				0.85		0.67		0.70		0.82		0.70
Dividends declared				0.34		0.34		0.34		0.33		0.33
Book value (period end)				37.96		38.92		39.64		40.91		40.41
Tangible book value (period end) (1)				18.84		19.89		20.87		22.61		22.51
Average common shares outstanding - basic				59,549,244		60,036,103		61,445,399		63,045,061		64,931,764
Average common shares outstanding - diluted				59,697,676		60,185,207		61,593,365		63,183,411		65,065,848
Period end common shares outstanding				59,304,505		59,698,788		60,613,414		62,307,245		63,838,549
Period end preferred shares outstanding				150,000		150,000		150,000		150,000		150,000
Full time equivalent employees				2,480		2,509		2,456		2,462		2,425
(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				2022		2022		2022		2021		2021
Non-performing assets:
	Troubled debt restructurings - accruing			$        4,583		$        3,579		$        3,731		$        3,746		$        3,707
	Non-accrual loans:
		Troubled debt restructurings		1,756		2,120		1,348		1,547		1,615
		Other non-accrual loans		26,428		29,594		32,024		34,195		34,644
		Total non-accrual loans		28,184		31,714		33,372		35,742		36,259
		Total non-performing loans		32,767		35,293		37,103		39,488		39,966
	Other real estate and repossessed assets			1,595		31		87		-		293
		Total non-performing assets		$      34,362		$      35,324		$      37,190		$      39,488		$      40,259
Past due loans (1):
	Loans past due 30-89 days			$      21,836		$      31,388		$      28,322		$      27,152		$      32,682
	Loans past due 90 days or more			24,311		9,560		6,142		7,804		11,252
		Total past due loans		$      46,147		$      40,948		$      34,464		$      34,956		$      43,934
Criticized and classified loans (2):
	Criticized loans			$    163,176		$    193,871		$    234,143		$    248,518		$    290,281
	Classified loans			86,861		126,257		123,837		116,013		127,022
		Total criticized and classified loans		$    250,037		$    320,128		$    357,980		$    364,531		$    417,303
Loans past due 30-89 days / total portfolio loans (3)				0.21	%	0.31	%	0.29	%	0.28	%	0.33	%
Loans past due 90 days or more / total portfolio loans				0.24		0.09		0.06		0.08		0.11
Non-performing loans / total portfolio loans				0.32		0.35		0.38		0.41		0.40
Non-performing assets / total portfolio loans, other
	real estate and repossessed assets			0.33		0.35		0.38		0.41		0.41
Non-performing assets / total assets				0.21		0.21		0.22		0.23		0.24
Criticized and classified loans / total portfolio loans				2.43		3.14		3.68		3.75		4.21
Allowance for credit losses
Allowance for credit losses - loans				$    114,584		$    117,403		$    117,865		$    121,622		$    136,605
Allowance for credit losses - loan commitments				8,938		7,718		8,050		7,775		7,290
Provision for credit losses				(535)		(812)		(3,438)		(13,559)		(1,730)
Net loan and deposit account overdraft charge-offs and recoveries				1,102		2		27		929		842
Annualized net loan charge-offs and recoveries / average loans				0.04	%	0.00	%	0.00	%	0.04	%	0.03	%
Allowance for credit losses - loans / total portfolio loans				1.11	%	1.15	%	1.21	%	1.25	%	1.38	%
Allowance for credit losses - loans / total portfolio loans excluding PPP loans				1.12	%	1.15	%	1.22	%	1.27	%	1.42	%
Allowance for credit losses - loans / non-performing loans				3.50	x	3.33	x	3.18	x	3.08	x	3.42	x
Allowance for credit losses - loans / non-performing loans and
	loans past due			1.45	x	1.54	x	1.65	x	1.63	x	1.63	x
				Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,
				2022		2022		2022		2021		2021
Capital ratios
Tier I leverage capital				9.68	%	9.51	%	9.67	%	10.02	%	10.10	%
Tier I risk-based capital				12.51		12.49		13.25		14.05		14.18
Total risk-based capital				15.37		15.40		16.32		15.91		16.38
Common equity tier 1 capital ratio (CET 1)				11.35		11.31		12.01		12.77		12.91
Average shareholders' equity to average assets				14.75		14.79		15.63		15.99		16.28
Tangible equity to tangible assets (4)				8.16		8.50		8.83		9.84		10.04
Tangible common equity to tangible assets (4)				7.22		7.58		7.92		8.92		9.12
(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 $13.0 million of PPP loans as of September 30, 2022.
(4) See non-GAAP financial measures for additional information relating to the calculation of this ratio.

 

WESBANCO, INC.
Non-GAAP Financial Measures															Page 12
The following non-GAAP financial measures used by WesBanco provide information useful to investors in understanding WesBanco's operating performance and trends, and facilitate comparisons with the performance of WesBanco's peers. The following tables summarize the non-GAAP financial measures derived from amounts reported in WesBanco's financial statements.
				Three Months Ended										Year to Date
				Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,		Sept. 30,
(unaudited, dollars in thousands, except shares and per share amounts)				2022		2022		2022		2021		2021		2022	2021
Return on average assets, excluding after-tax restructuring and merger-related expenses:
	Net income available to common shareholders			$        50,502		$        40,217		$        41,593		$        51,617		$        41,877		$          132,309	$      180,518
	Plus: after-tax restructuring and merger-related expenses  (1)			52		41		1,258		140		3,529		1,352	5,167
	Net income available to common shareholders excluding after-tax restructuring and merger-related expenses			50,554		40,258		42,851		51,757		45,406		133,661	185,685
	Average total assets			$ 16,871,655		$ 16,971,452		$ 16,992,598		$ 16,947,662		$17,057,793		$    16,944,786	$ 16,921,888
Return on average assets, excluding after-tax restructuring and merger-related expenses (annualized)  (2)				1.19 %		0.95 %		1.02 %		1.21 %		1.06 %		1.05 %	1.47 %
Return on average equity, excluding after-tax restructuring and merger-related expenses:
	Net income available to common shareholders			$        50,502		$        40,217		$        41,593		$        51,617		$        41,877		$          132,309	$      180,518
	Plus: after-tax restructuring and merger-related expenses  (1)			52		41		1,258		140		3,529		1,352	5,167
	Net income available to common shareholders excluding after-tax restructuring and merger-related expenses			50,554		40,258		42,851		51,757		45,406		133,661	185,685
	Average total shareholders' equity			$   2,488,938		$   2,509,439		$   2,655,807		$   2,709,782		$   2,777,306		$       2,550,809	$   2,782,729
Return on average equity, excluding after-tax  restructuring and merger-related expenses (annualized)  (2)				8.06 %		6.43 %		6.54 %		7.58 %		6.49 %		7.01 %	8.92 %
Return on average tangible equity:
	Net income available to common shareholders			$        50,502		$        40,217		$        41,593		$        51,617		$        41,877		$          132,309	$      180,518
	Plus: amortization of intangibles (1)			2,022		2,037		2,052		2,239		2,255		6,113	6,811
	Net income available to common shareholders before amortization of intangibles			52,524		42,254		43,645		53,856		44,132		138,422	187,329
	Average total shareholders' equity			2,488,938		2,509,439		2,655,807		2,709,782		2,777,306		2,550,809	2,782,729
	Less: average goodwill and other intangibles, net of def. tax liability			(1,135,007)		(1,137,187)		(1,139,242)		(1,141,307)		(1,143,522)		(1,137,130)	(1,145,841)
	Average tangible equity			$   1,353,931		$   1,372,252		$   1,516,565		$   1,568,475		$   1,633,784		$       1,413,679	$   1,636,888
Return on average tangible equity (annualized)  (2)				15.39 %		12.35 %		11.67 %		13.62 %		10.72 %		13.09 %	15.30 %
	Average tangible common equity			$   1,209,447		$   1,227,768		$   1,372,081		$   1,423,991		$   1,489,300		$       1,269,195	$   1,492,404
Return on average tangible common equity (annualized)  (2)				17.23 %		13.80 %		12.90 %		15.00 %		11.76 %		14.58 %	16.78 %
Return on average tangible equity, excluding after-tax restructuring and merger-related expenses:
	Net income available to common shareholders			$        50,502		$        40,217		$        41,593		$        51,617		$        41,877		$          132,309	$      180,518
	Plus: after-tax restructuring and merger-related expenses  (1)			52		41		1,258		140		3,529		1,352	5,167
	Plus: amortization of intangibles  (1)			2,022		2,037		2,052		2,239		2,255		6,113	6,811
	Net income available to common shareholders before amortization of intangibles
	and excluding after-tax restructuring and merger-related expenses			52,576		42,295		44,903		53,996		47,661		139,774	192,496
	Average total shareholders' equity			2,488,938		2,509,439		2,655,807		2,709,782		2,777,306		2,550,809	2,782,729
	Less: average goodwill and other intangibles, net of def. tax liability			(1,135,007)		(1,137,187)		(1,139,242)		(1,141,307)		(1,143,522)		(1,137,130)	(1,145,841)
	Average tangible equity			$   1,353,931		$   1,372,252		$   1,516,565		$   1,568,475		$   1,633,784		$       1,413,679	$   1,636,888
Return on average tangible equity, excluding after-tax  restructuring and merger-related expenses (annualized)  (2)				15.41 %		12.36 %		12.01 %		13.66 %		11.57 %		13.22 %	15.72 %
	Average tangible common equity			$   1,209,447		$   1,227,768		$   1,372,081		$   1,423,991		$   1,489,300		$       1,269,195	$   1,492,404
Return on average tangible common equity, excluding after-tax restructuring and merger-related expenses (annualized)  (2)				17.25 %		13.82 %		13.27 %		15.04 %		12.70 %		14.72 %	17.25 %
Efficiency ratio:
	Non-interest expense			$        91,941		$        87,019		$        87,548		$        88,303		$        94,701		$          266,511	$      264,840
	Less: restructuring and merger-related expense			(66)		(52)		(1,593)		(177)		(4,467)		(1,712)	(6,540)
	Non-interest expense excluding restructuring and merger-related expense			91,875		86,967		85,955		88,126		90,234		264,799	258,300
	Net interest income on a fully taxable equivalent basis			125,808		113,479		108,866		111,453		116,355		348,151	350,777
	Non-interest income			32,256		26,983		30,382		30,709		32,755		89,622	102,076
	Net interest income on a fully taxable equivalent basis plus non-interest income			$      158,064		$      140,462		$      139,248		$      142,162		$      149,110		$          437,773	$      452,853
	Efficiency ratio			58.13 %		61.91 %		61.73 %		61.99 %		60.52 %		60.49 %	57.04 %
Net income available to common shareholders, excluding after-tax restructuring and merger-related expenses:
	Net income available to common shareholders			$        50,502		$        40,217		$        41,593		$        51,617		$        41,877		$          132,309	$      180,518
	Add: After-tax restructuring and merger-related expenses (1)			52		41		1,258		140		3,529		1,352	5,167
Net income available to common shareholders, excluding after-tax restructuring and merger-related expenses				$        50,554		$        40,258		$        42,851		$        51,757		$        45,406		$          133,661	$      185,685
Net income per common share - diluted, excluding after-tax restructuring and merger-related expenses:
	Net income per common share - diluted			$             0.85		$             0.67		$             0.68		$             0.82		$             0.64		$                 2.19	$             2.71
	Add: After-tax restructuring and merger-related expenses per common share - diluted (1)			-		-		0.02		-		0.06		0.02	0.08
Net income per common share - diluted, excluding after-tax restructuring and merger-related expenses				$             0.85		$             0.67		$             0.70		$             0.82		$             0.70		$                 2.21	$             2.79
				Period End
				Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,
				2022		2022		2022		2021		2021
Tangible book value per share:
	Total shareholders' equity			$   2,395,652		$   2,467,951		$   2,547,316		$   2,693,166		$   2,723,983
	Less:  goodwill and other intangible assets, net of def. tax liability			(1,133,998)		(1,136,020)		(1,138,057)		(1,140,111)		(1,142,350)
	Less: preferred shareholder's equity			(144,484)		(144,484)		(144,484)		(144,484)		(144,484)
	Tangible common equity			1,117,170		1,187,447		1,264,775		1,408,571		1,437,149
	Common shares outstanding			59,304,505		59,698,788		60,613,414		62,307,245		63,838,549
Tangible book value per share				$           18.84		$           19.89		$           20.87		$           22.61		$          22.51
Tangible common equity to tangible assets:
	Total shareholders' equity			$   2,395,652		$   2,467,951		$   2,547,316		$   2,693,166		$   2,723,983
	Less:  goodwill and other intangible assets, net of def. tax liability			(1,133,998)		(1,136,020)		(1,138,057)		(1,140,111)		(1,142,350)
	Tangible equity			1,261,654		1,331,931		1,409,259		1,553,055		1,581,633
	Less: preferred shareholder's equity			(144,484)		(144,484)		(144,484)		(144,484)		(144,484)
	Tangible common equity			1,117,170		1,187,447		1,264,775		1,408,571		1,437,149
	Total assets			16,604,747		16,799,624		17,104,015		16,927,125		16,892,111
	Less:  goodwill and other intangible assets, net of def. tax liability			(1,133,998)		(1,136,020)		(1,138,057)		(1,140,111)		(1,142,350)
	Tangible assets			$ 15,470,749		$ 15,663,604		$ 15,965,958		$ 15,787,014		$15,749,761
Tangible equity to tangible assets				8.16 %		8.50 %		8.83 %		9.84 %		10.04 %
Tangible common equity to tangible assets				7.22 %		7.58 %		7.92 %		8.92 %		9.12 %
(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)				2022		2022		2022		2021		2021		2022	2021
Pre-tax, pre-provision income:
	Income before provision for income taxes			$        65,351		$        53,004		$        53,983		$        66,292		$        55,059		$      172,335	$      235,557
	Add: provision for credit losses			(535)		(812)		(3,438)		(13,559)		(1,730)		(4,785)	(50,714)
Pre-tax, pre-provision income				$        64,816		$        52,192		$        50,545		$        52,733		$        53,329		$      167,550	$      184,843
Pre-tax, pre-provision income, excluding restructuring and merger-related expenses:
	Income before provision for income taxes			$        65,351		$        53,004		$        53,983		$        66,292		$        55,059		$      172,335	$      235,557
	Add: provision for credit losses			(535)		(812)		(3,438)		(13,559)		(1,730)		(4,785)	(50,714)
	Add: restructuring and merger-related expenses			66		52		1,593		177		4,467		1,712	6,540
Pre-tax, pre-provision income, excluding restructuring and merger-related expenses				$        64,882		$        52,244		$        52,138		$        52,910		$        57,796		$      169,262	$      191,383
Return on average assets, excluding certain items (1):
	Income before provision for income taxes			$        65,351		$        53,004		$        53,983		$        66,292		$        55,059		$      172,335	$      235,557
	Add: provision for credit losses			(535)		(812)		(3,438)		(13,559)		(1,730)		(4,785)	(50,714)
	Add: restructuring and merger-related expenses			66		52		1,593		177		4,467		1,712	6,540
Pre-tax, pre-provision income, excluding restructuring and merger-related expenses				64,882		52,244		52,138		52,910		57,796		169,262	191,383
	Average total assets			$ 16,871,655		$ 16,971,452		$ 16,992,598		$ 16,947,662		$ 17,057,793		$ 16,944,786	$ 16,921,888
Return on average assets, excluding certain items (annualized)  (1) (2)				1.53 %		1.23 %		1.24 %		1.24 %		1.34 %		1.34 %	1.51 %
Return on average equity, excluding certain items (1):
	Income before provision for income taxes			$        65,351		$        53,004		$        53,983		$        66,292		$        55,059		$      172,335	$      235,557
	Add: provision for credit losses			(535)		(812)		(3,438)		(13,559)		(1,730)		(4,785)	(50,714)
	Add: restructuring and merger-related expenses			66		52		1,593		177		4,467		1,712	6,540
Pre-tax, pre-provision income, excluding restructuring and merger-related expenses				64,882		52,244		52,138		52,910		57,796		169,262	191,383
	Average total shareholders' equity			$   2,488,938		$   2,509,439		$   2,655,807		$   2,709,782		$   2,777,306		$   2,550,809	$   2,782,729
Return on average equity, excluding certain items (annualized) (1) (2)				10.34 %		8.35 %		7.96 %		7.75 %		8.26 %		8.87 %	9.20 %
Return on average tangible equity, excluding certain items (1):
	Income before provision for income taxes			$        65,351		$        53,004		$        53,983		$        66,292		$        55,059		$      172,335	$      235,557
	Add: provision for credit losses			(535)		(812)		(3,438)		(13,559)		(1,730)		(4,785)	(50,714)
	Add: amortization of intangibles			2,560		2,579		2,598		2,834		2,854		7,738	8,622
	Add: restructuring and merger-related expenses			66		52		1,593		177		4,467		1,712	6,540
Income before provision, restructuring and merger-related expenses and amortization of intangibles				67,442		54,823		54,736		55,744		60,650		177,000	200,005
	Average total shareholders' equity			2,488,938		2,509,439		2,655,807		2,709,782		2,777,306		2,550,809	2,782,729
	Less: average goodwill and other intangibles, net of def. tax liability			(1,135,007)		(1,137,187)		(1,139,242)		(1,141,307)		(1,143,522)		(1,137,130)	(1,145,841)
	Average tangible equity			$   1,353,931		$   1,372,252		$   1,516,565		$   1,568,475		$   1,633,784		$   1,413,679	$   1,636,888
Return on average tangible equity, excluding certain items (annualized) (1) (2)				19.76 %		16.02 %		14.64 %		14.10 %		14.73 %		16.74 %	16.34 %
	Average tangible common equity			$   1,209,447		$   1,227,768		$   1,372,081		$   1,423,991		$   1,489,300		$   1,269,195	$   1,492,404
Return on average tangible common equity, excluding certain items (annualized) (1) (2)				22.12 %		17.91 %		16.18 %		15.53 %		16.16 %		18.65 %	17.92 %
(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 2022?

WesBanco reported net income of $50.5 million and diluted earnings per share of $0.85 for Q3 2022.

How did WesBanco's earnings compare year-over-year for Q3?

In Q3 2021, WesBanco's net income was $41.9 million with diluted EPS of $0.64, representing a 20% increase in net income for Q3 2022.

What is WesBanco's net interest margin for Q3 2022?

WesBanco's net interest margin for Q3 2022 was 3.33%, a 30 basis point increase sequentially.

What is the outlook for WesBanco's loan growth?

WesBanco experienced a 6.5% year-over-year increase in total loans, indicating a robust lending environment.

How much did WesBanco's non-interest income decline in Q3 2022?

Non-interest income for Q3 2022 decreased by $0.5 million, or 1.5%, compared to Q3 2021.