WesBanco Announces Third Quarter 2023 Financial Results

Rhea-AI Summary

WesBanco, Inc. announces solid deposit and loan growth, strong capital levels, and credit quality. Net income for Q3 2023 was $34.3 million, compared to $50.5 million in Q3 2022. Total loan growth was 10.1% YoY and 7.6% annualized. Credit quality metrics remain favorable. WesBanco remains well-capitalized.

Positive

• WesBanco reports solid deposit and loan growth, with total loan growth at 10.1% YoY and 7.6% annualized. Credit quality metrics remain favorable. WesBanco remains well-capitalized.

Negative

• Net income for Q3 2023 decreased to $34.3 million from $50.5 million in Q3 2022.

Generated solid deposit and loan growth; maintained strong capital levels and credit quality

WHEELING, W.V., Oct. 25, 2023 /PRNewswire/ -- WesBanco, Inc. ("WesBanco") (Nasdaq: WSBC), a diversified, multi-state bank holding company, today announced net income and related earnings per share for the three and nine months ended September 30, 2023.  Net income available to common shareholders for the third quarter of 2023 was $34.3 million, with diluted earnings per share of $0.58, compared to $50.5 million and $0.85 per diluted share, respectively, for the third quarter of 2022.  For the nine months ended September 30, 2023, net income was $116.5 million, or $1.96 per diluted share, compared to $132.3 million, or $2.19 per diluted share, for the 2022 period.  As noted in the following table, net income available to common shareholders, excluding after-tax restructuring and merger-related expenses, for the three and nine months ended September 30, 2023 were $34.8 million, or $0.59 per diluted share, and $119.5 million, or $2.01 per diluted share, respectively (non-GAAP measures).

			For the Three Months Ended September 30,									For the Nine Months Ended September 30,
			2023				2022					2023				2022
(unaudited, dollars in thousands, except per share amounts)			Net Income		Diluted Earnings Per Share		Net Income		Diluted Earnings Per Share			Net Income		Diluted Earnings Per Share		Net Income		Diluted Earnings Per Share
Net income available to common shareholders (Non-GAAP)(1)			$      34,817		$       0.59		$      50,554		$       0.85			$    119,496		$       2.01		$    133,661		$       2.21
Less: After-tax restructuring and merger-related expenses			(506)		(0.01)		(52)		-			(3,026)		(0.05)		(1,352)		(0.02)
Net income available to common shareholders (GAAP)			$      34,311		$       0.58		$      50,502		$       0.85			$    116,470		$       1.96		$    132,309		$       2.19
(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, 2023:

• Deposits increased compared to the quarter ending June 30, 2023, reflecting deposit gathering and retention efforts across retail and business customers
  • Period-end deposits essentially flat to December 31, 2022
  • Average loans to average deposits were 87%
• Total loan growth was 10.1% year-over-year and 7.6% annualized (when compared to December 31, 2022), reflecting the strength of our markets and lending teams
  • Loan production offices, led by our newest in Chattanooga, TN, are contributing meaningfully to the commercial loan pipeline
• Non-interest income trends remained solid, supported by new commercial loan swap and wealth management fees
• 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 (based upon the prior four quarters for banks with total assets between $10 billion and $25 billion)
• WesBanco remains well-capitalized with solid liquidity and a strong balance sheet with capacity to fund loan growth

"For the third quarter of 2023, WesBanco returned deposit balances to year-end 2022 levels and delivered another quarter of year-over-year loan growth at 10%, while maintaining strong credit quality metrics.  Our solid financial results for the quarter reflect the strength of our franchise and the competitiveness of our growth strategies and teams in the current environment," said Jeff Jackson, President and Chief Executive Officer, WesBanco.  "The strong adoption of our new WesBanco One account by new and existing customers, meaningful pipeline contributions from our latest loan production office in Chattanooga, and forthcoming treasury management offerings to support commercial customers are all proof points of our commitment to innovation and investments that serve customers better and drive sustainable growth.  We remain focused on disciplined expense management and generating positive operating leverage.  And, I believe in the long-term growth prospects we are building for our customers, communities, employees and shareholders." 

Balance Sheet
Loan growth for the third quarter of 2023 continues to reflect strong performance by our commercial and residential lending teams.  As of September 30, 2023, total portfolio loans were $11.3 billion, which increased 10.1% year-over-year driven by strong growth across all markets and the closing of loans from the commercial pipeline.  The commercial pipeline totaled $0.8 billion at September 30, 2023, approximately 25% of which is from the four new loan production offices.  Commercial and industrial loans increased 4.7% year-over-year and 7.5% annualized quarter-over-quarter to $1.6 billion, as of September 30, 2023, reflecting our strategic loan production office and lender hiring initiatives.

Total deposits, as of September 30, 2023, were $13.1 billion, up 1.8% from June 30, 2023 and consistent with the level reported at December 31, 2022, reflecting the benefit of deposit gathering and retention efforts by our retail and commercial teams.  In addition, brokered deposits increased $64 million from June 30, 2023.  On a year-over-year basis, the decrease in total deposits reflects the impact of interest rate and inflationary pressures and rising costs across the economy, combined with Federal Reserve's tightening actions to control inflation, which resulted in industry-wide deposit contraction.  While there has been some mix shift in the composition of total deposits, total demand deposits continue to represent 57% of total deposits, with the non-interest bearing component representing 32%, which remains consistent with the percentage range since early 2020.  

Credit Quality
As of September 30, 2023, total loans past due, criticized and classified loans, non-performing loans, and non-performing assets as percentages of the loan portfolio and total assets have remained low, from a historical perspective, and within a consistent range throughout the last five quarters.  Total loans past due as a percent of the loan portfolio decreased 23 basis points from the prior year, while criticized and classified loans as a percent of the loan portfolio decreased 21 basis points to 2.22%.  During the third quarter of 2023, we recorded a provision for credit losses of $6.3 million, as compared to a release of provision in the prior year period of $0.5 million.  The current recorded provision was primarily driven by a $2.9 million specific reserve on one hospitality loan in addition to loan growth and regional macroeconomic factors.  The allowance for credit losses to total portfolio loans at September 30, 2023 was $126.6 million, or 1.12% of total loans.  Excluded from the allowance for credit losses and related coverage ratio are fair market value adjustments on previously acquired loans representing 0.13% of total loans.

Net Interest Margin and Income
The net interest margin of 3.03% for the third quarter of 2023 decreased 15 basis points sequentially primarily due to higher funding costs from increasing deposit costs and continued remix from non-interest bearing deposits into higher tier money market and certificate of deposit accounts.  Total deposit funding costs were 201 basis points for the third quarter of 2023, and, when including non-interest deposits, total deposit funding costs were 136 basis points, up 119 basis points year-over-year and 33 basis points sequentially, which reflect the 525 basis point increase in the federal funds rate since March 2022.  Accretion from acquisitions benefited the third quarter net interest margin by 2 basis points, as compared to 5 basis points in the prior year period.

Net interest income of $117.7 million decreased $6.8 million, or 5.5%, during the third quarter of 2023, as compared to the same quarter of 2022, reflecting loan growth and the impact of rising rates on funding costs and loan and securities yields.  For the nine months ended September 30, 2023, net interest income of $363.6 million increased $19.1 million, or 5.6%, primarily due to the reasons discussed for the three-month period comparison.

Non-Interest Income
For the third quarter of 2023, non-interest income of $30.9 million decreased $1.4 million, or 4.3%, from the third quarter of 2022, due primarily to a $1.5 million gain on the sale of the underlying equity investments held by WesBanco Community Development Corporation last year, which was recorded in net gains on other real estate owned and other assets.  Excluding this prior year gain on sale, non-interest income would have increased 0.5% year-over-year, reflecting the strength in commercial swap fees, which are now reflected as their own line item on the income statement.  New commercial swap fees increased $0.8 million from the prior year period to $2.5 million, while associated fair market value adjustments totaled $1.4 million during the third quarter, as compared to $0.8 million last year.  

Primarily reflecting the items discussed above, as well as lower mortgage banking and bank-owned life insurance income, non-interest income, for the nine months ended September 30, 2023, of $90.4 million increased $0.8 million, or 0.8%.  Mortgage banking income decreased $2.5 million from the prior year to $2.0 million due to a reduction in residential mortgage originations, primarily driven by the higher interest rate environment.  Bank-owned life insurance of $7.5 million decreased $0.7 million year-over-year due to higher death benefits during 2022.

Non-Interest Expense
Excluding restructuring and merger-related expenses, non-interest expense for the three months ended September 30, 2023 totaled $97.3 million, reflecting increased salaries and wages, benefits, equipment and software expense, and FDIC insurance.  Salaries and wages increased $1.1 million, or 2.4%, compared to the prior year period due to higher salary expense related to annual merit increases and new revenue-producing hires, mainly commercial lenders, during the past year, offset somewhat by efficiency improvements in the mortgage banking staffing model.  Employee benefits increased $1.2 million year-over-year due primarily to higher health insurance contributions.  Equipment and software expense increased $1.0 million due to the planned upgrade of our ATM fleet with the latest technology and general inflationary cost increases for existing service agreements.  FDIC insurance expense increased $0.7 million year-over-year due to an increase in the minimum rate for all banks.

Excluding restructuring and merger-related expenses, non-interest expense during the first nine months of 2023 of $286.7 million increased $21.9 million compared to the prior year period, due primarily to higher salaries and wages, employee benefits, FDIC insurance, and equipment and software expense as described above.

Capital
WesBanco continues to maintain what we believe are strong regulatory capital ratios, as both consolidated and bank-level regulatory capital ratios are well above the applicable "well-capitalized" standards promulgated by bank regulators and the BASEL III capital standards.  At September 30, 2023, Tier I leverage was 9.84%, Tier I risk-based capital ratio was 12.07%, common equity Tier 1 capital ratio ("CET 1") was 11.00%, and total risk-based capital was 14.97%.  In addition, the tangible common equity to tangible assets ratio was 7.26%.

Conference Call and Webcast
WesBanco will host a conference call to discuss the Company's financial results for the third quarter of 2023 at 3:00 p.m. ET on Thursday, October 26, 2023. Interested parties can access the live webcast of the conference call through the Investor Relations section of the Company's website, www.wesbanco.com.  Participants can also listen to the conference call by dialing 888-347-6607, 855-669-9657 for Canadian callers, or 412-902-4290 for international callers, and asking to be joined into the WesBanco call.  Please log in or dial in at least 10 minutes prior to the start time to ensure a connection.

A replay of the conference call will be available by dialing 877-344-7529, 855-669-9658 for Canadian callers, or 412-317-0088 for international callers, and providing the access code of 5727200.  The replay will begin at approximately 5:00 p.m. ET on October 26, 2023 and end at 12 a.m. ET on November 9, 2023.  An archive of the webcast will be available for one year on the Investor Relations section of the Company's website (www.wesbanco.com).

Forward-Looking Statements
Forward-looking statements in this report relating to WesBanco's plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The information contained in this report should be read in conjunction with WesBanco's Form 10-K for the year ended December 31, 2022 and documents subsequently filed by WesBanco with the Securities and Exchange Commission ("SEC"), including WesBanco's Form 10-Q for the quarters ended March 31, 2023 and June 30, 2023, which are available at the SEC's website, www.sec.gov or at WesBanco's website, www.WesBanco.com. Investors are cautioned that forward-looking statements, which are not historical fact, involve risks and uncertainties, including those detailed in WesBanco's most recent Annual Report on Form 10-K filed with the SEC under "Risk Factors" in Part I, Item 1A. Such statements are subject to important factors that could cause actual results to differ materially from those contemplated by such statements, including, without limitation, the effects of changing regional and national economic conditions, changes in interest rates, spreads on earning assets and interest-bearing liabilities, and associated interest rate sensitivity; sources of liquidity available to WesBanco and its related subsidiary operations; potential future credit losses and the credit risk of commercial, real estate, and consumer loan customers and their borrowing activities; actions of the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Consumer Financial Protection Bureau, the SEC, the Financial Institution Regulatory Authority, the Municipal Securities Rulemaking Board, the Securities Investors Protection Corporation, and other regulatory bodies; potential legislative and federal and state regulatory actions and reform, including, without limitation, the impact of the implementation of the Dodd-Frank Act; adverse decisions of federal and state courts; fraud, scams and schemes of third parties; cyber-security breaches; competitive conditions in the financial services industry; rapidly changing technology affecting financial services; marketability of debt instruments and corresponding impact on fair value adjustments; and/or other external developments materially impacting WesBanco's operational and financial performance. WesBanco does not assume any duty to update forward-looking statements.

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

About WesBanco, Inc.
Founded in 1870, Wesbanco, Inc. is a diversified and balanced financial services company that delivers large bank capabilities with a community bank feel. Our distinct long-term growth strategies are built upon unique sustainable advantages permitting us to span six states with meaningful market share. The company's banking subsidiary, Wesbanco Bank, Inc., operates more than 190 financial centers in the states of Indiana, Kentucky, Maryland, Ohio, Pennsylvania, and West Virginia. Built upon our 'Better Banking Pledge', our customer-centric service culture is focused on growing long-term relationships by pledging to serve all personal and business customer needs efficiently and effectively. In addition to a full range of online and mobile banking options and a full-suite of commercial products and services, the company provides trust, wealth management, securities brokerage, and private banking services through its century-old Trust and Investment Services department, with approximately $5.0 billion of assets under management (as of September 30, 2023). The company also offers insurance and brokerage services through its affiliates and subsidiaries. Learn more at www.wesbanco.com and follow us on Facebook, LinkedIn and X, formerly Twitter.

 

WESBANCO, INC.
Consolidated Selected Financial Highlights														Page 5
(unaudited, dollars in thousands, except shares and per share amounts)
				For the Three Months Ended						For the Nine Months Ended
Statement of Income				September 30,						September 30,
Interest and dividend income				2023		2022		% Change		2023		2022		% Change
	Loans, including fees			$        155,206		$          109,562		41.7		$        434,352		$          299,094		45.2
	Interest and dividends on securities:
		Taxable		18,082		17,531		3.1		55,651		47,468		17.2
		Tax-exempt		4,679		4,916		(4.8)		14,191		13,965		1.6
			Total interest and dividends on securities	22,761		22,447		1.4		69,842		61,433		13.7
	Other interest income			5,622		2,108		166.7		16,004		4,211		280.1
Total interest and dividend income				183,589		134,117		36.9		520,198		364,738		42.6
Interest expense
	Interest bearing demand deposits			20,873		2,953		606.8		49,181		4,917		900.2
	Money market deposits			10,841		968		NM		22,313		1,672		NM
	Savings deposits			6,699		1,067		527.8		16,559		1,662		896.3
	Certificates of deposit			5,983		958		524.5		10,092		3,347		201.5
			Total interest expense on deposits	44,396		5,946		646.7		98,145		11,598		746.2
	Federal Home Loan Bank borrowings			16,463		348		NM		44,477		1,334		NM
	Other short-term borrowings			745		147		406.8		1,654		244		577.9
	Subordinated debt and junior subordinated debt			4,303		3,175		35.5		12,342		7,123		73.3
			Total interest expense	65,907		9,616		585.4		156,618		20,299		671.6
Net interest income				117,682		124,501		(5.5)		363,580		344,439		5.6
	Provision for credit losses			6,327		(535)		NM		12,932		(4,785)		370.3
Net interest income after provision for credit losses				111,355		125,036		(10.9)		350,648		349,224		0.4
Non-interest income
	Trust fees			6,705		6,517		2.9		21,116		20,879		1.1
	Service charges on deposits			6,726		6,942		(3.1)		19,128		19,520		(2.0)
	Electronic banking fees			4,949		4,808		2.9		14,564		15,307		(4.9)
	Net swap fee and valuation income			3,845		2,430		58.2		7,257		6,053		19.9
	Net securities brokerage revenue			2,394		2,491		(3.9)		7,492		6,969		7.5
	Bank-owned life insurance			2,398		1,999		20.0		7,547		8,263		(8.7)
	Mortgage banking income			975		1,257		(22.4)		2,002		4,508		(55.6)
	Net securities (losses)/gains			(337)		656		(151.4)		13		(1,176)		101.1
	Net (losses)/gains on other real estate owned and other assets			(28)		2,040		(101.4)		1,075		(68)		NM
	Other income			3,252		3,116		4.4		10,178		9,367		8.7
			Total non-interest income	30,879		32,256		(4.3)		90,372		89,622		0.8
Non-interest expense
	Salaries and wages			45,351		44,271		2.4		131,774		124,421		5.9
	Employee benefits			11,922		10,693		11.5		35,492		28,574		24.2
	Net occupancy			6,146		6,489		(5.3)		18,921		19,843		(4.6)
	Equipment and software			9,132		8,083		13.0		27,018		23,795		13.5
	Marketing			3,115		2,377		31.0		8,203		7,546		8.7
	FDIC insurance			3,125		2,391		30.7		8,880		5,850		51.8
	Amortization of intangible assets			2,262		2,560		(11.6)		6,845		7,738		(11.5)
	Restructuring and merger-related expense			641		66		871.2		3,830		1,712		123.7
	Other operating expenses			16,245		15,011		8.2		49,535		47,032		5.3
			Total non-interest expense	97,939		91,941		6.5		290,498		266,511		9.0
Income before provision for income taxes				44,295		65,351		(32.2)		150,522		172,335		(12.7)
	Provision for income taxes			7,453		12,318		(39.5)		26,458		32,432		(18.4)
Net Income				36,842		53,033		(30.5)		124,064		139,903		(11.3)
Preferred stock dividends				2,531		2,531		-		7,594		7,594		-
Net income available to common shareholders				$          34,311		$            50,502		(32.1)		$        116,470		$          132,309		(12.0)
Taxable equivalent net interest income				$        118,926		$          125,808		(5.5)		$        367,352		$          348,151		5.5
Per common share data
Net income per common share - basic				$              0.58		$                0.85		(31.8)		$              1.96		$                2.19		(10.5)
Net income per common share - diluted				0.58		0.85		(31.8)		1.96		2.19		(10.5)
Net income per common share - diluted, excluding certain items (1)(2)				0.59		0.85		(30.6)		2.01		2.21		(9.0)
Dividends declared				0.35		0.34		2.9		1.05		1.02		2.9
Book value (period end)				38.80		37.96		2.2		38.80		37.96		2.2
Tangible book value (period end) (1)				19.82		18.84		5.2		19.82		18.84		5.2
Average common shares outstanding - basic				59,358,653		59,549,244		(0.3)		59,280,644		60,336,637		(1.8)
Average common shares outstanding - diluted				59,443,366		59,697,676		(0.4)		59,386,429		60,489,248		(1.8)
Period end common shares outstanding				59,364,696		59,304,505		0.1		59,364,696		59,304,505		0.1
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,
						2023		2022		% Change
Return on average assets						0.91	%	1.04	%	(12.50)	%
Return on average assets, excluding
after-tax restructuring and merger-related expenses (1)						0.93		1.05		(11.43)
Return on average equity						6.29		6.93		(9.24)
Return on average equity, excluding
after-tax restructuring and merger-related expenses (1)						6.45		7.01		(7.99)
Return on average tangible equity (1)						12.09		13.09		(7.64)
Return on average tangible equity, excluding
after-tax restructuring and merger-related expenses (1)						12.39		13.22		(6.28)
Return on average tangible common equity (1)						13.55		14.58		(7.06)
Return on average tangible common equity, excluding
after-tax restructuring and merger-related expenses (1)						13.88		14.72		(5.71)
Yield on earning assets (2)						4.55		3.29		38.30
Cost of interest bearing liabilities						2.08		0.29		617.24
Net interest spread (2)						2.47		3.00		(17.67)
Net interest margin (2)						3.19		3.11		2.57
Efficiency (1) (2)						62.63		60.49		3.54
Average loans to average deposits						85.25		72.82		17.07
Annualized net loan charge-offs/average loans						0.03		0.02		50.00
Effective income tax rate						17.58		18.82		(6.59)
						For the Three Months Ended
						Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,
						2023		2023		2023		2022		2022
Return on average assets						0.78	%	0.98	%	0.95	%	1.18	%	1.19	%
Return on average assets, excluding
after-tax restructuring and merger-related expenses (1)						0.80		0.98		1.01		1.18		1.19
Return on average equity						5.49		6.81		6.57		8.18		8.05
Return on average equity, excluding
after-tax restructuring and merger-related expenses (1)						5.57		6.82		6.98		8.18		8.06
Return on average tangible equity (1)						10.60		12.98		12.72		16.05		15.39
Return on average tangible equity, excluding
after-tax restructuring and merger-related expenses (1)						10.75		12.99		13.48		16.05		15.41
Return on average tangible common equity (1)						11.87		14.52		14.28		18.09		17.23
Return on average tangible common equity, excluding
after-tax restructuring and merger-related expenses (1)						12.03		14.53		15.13		18.10		17.25
Yield on earning assets (2)						4.72		4.59		4.32		4.00		3.59
Cost of interest bearing liabilities						2.52		2.15		1.52		0.82		0.41
Net interest spread (2)						2.20		2.44		2.80		3.18		3.18
Net interest margin (2)						3.03		3.18		3.36		3.49		3.33
Efficiency (1) (2)						64.95		62.33		60.66		56.91		58.13
Average loans to average deposits						86.79		85.44		83.46		78.43		75.01
Annualized net loan charge-offs and recoveries /average loans						0.01		0.02		0.07		0.02		0.04
Effective income tax rate						16.83		16.80		19.02		18.51		18.85
Trust assets, market value at period end						$   4,982,324		$      5,127,265		$      5,026,631		$      4,878,479		$      4,622,878
(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, 2022
Assets					2023		2022		% Change	2022	to September 30, 2023
Cash and due from banks					$        153,012		$          212,341		(27.9)	$             166,182	(7.9)
Due from banks - interest bearing					342,070		166,215		105.8	242,229	41.2
Securities:
	Equity securities, at fair value				11,453		11,964		(4.3)	11,506	(0.5)
	Available-for-sale debt securities, at fair value				2,196,141		2,645,748		(17.0)	2,529,140	(13.2)
	Held-to-maturity debt securities (fair values of $998,987; $1,065,833
	and $1,084,390, respectively)				1,210,992		1,262,467		(4.1)	1,248,629	(3.0)
		Allowance for credit losses, held-to-maturity debt securities			(180)		(225)		20.0	(220)	18.2
	Net held-to-maturity debt securities				1,210,812		1,262,242		(4.1)	1,248,409	(3.0)
		Total securities			3,418,406		3,919,954		(12.8)	3,789,055	(9.8)
Loans held for sale					17,677		12,887		37.2	8,249	114.3
Portfolio loans:
	Commercial real estate				6,387,183		5,831,384		9.5	6,061,344	5.4
	Commercial and industrial				1,587,611		1,516,856		4.7	1,579,395	0.5
	Residential real estate				2,392,531		2,010,344		19.0	2,140,584	11.8
	Home equity				715,186		609,765		17.3	695,065	2.9
	Consumer				233,362		309,313		(24.6)	226,340	3.1
Total portfolio loans, net of unearned income					11,315,873		10,277,662		10.1	10,702,728	5.7
Allowance for credit losses - loans					(126,615)		(114,584)		(10.5)	(117,790)	(7.5)
		Net portfolio loans			11,189,258		10,163,078		10.1	10,584,938	5.7
Premises and equipment, net					226,377		221,355		2.3	220,892	2.5
Accrued interest receivable					73,014		63,375		15.2	68,522	6.6
Goodwill and other intangible assets, net					1,134,510		1,143,896		(0.8)	1,141,355	(0.6)
Bank-owned life insurance					356,962		350,806		1.8	352,361	1.3
Other assets					433,091		350,840		23.4	358,122	20.9
Total Assets					$  17,344,377		$     16,604,747		4.5	$        16,931,905	2.4
Liabilities
Deposits:
	Non-interest bearing demand				$     4,169,956		$       4,736,722		(12.0)	$          4,700,438	(11.3)
	Interest bearing demand				3,278,956		3,201,714		2.4	3,119,807	5.1
	Money market				1,905,001		1,772,481		7.5	1,684,023	13.1
	Savings deposits				2,559,894		2,741,937		(6.6)	2,741,004	(6.6)
	Certificates of deposit				1,176,421		991,512		18.6	885,818	32.8
		Total deposits			13,090,228		13,444,366		(2.6)	13,131,090	(0.3)
Federal Home Loan Bank borrowings					1,125,000		56,998		NM	705,000	59.6
Other short-term borrowings					106,693		127,983		(16.6)	135,069	(21.0)
Subordinated debt and junior subordinated debt					282,079		281,179		0.3	281,404	0.2
		Total borrowings			1,513,772		466,160		224.7	1,121,473	35.0
Accrued interest payable					11,416		4,358		162.0	4,593	148.6
Other liabilities					281,020		294,211		(4.5)	248,087	13.3
Total Liabilities					14,896,436		14,209,095		4.8	14,505,243	2.7
Shareholders' Equity
Preferred stock, no par value; 1,000,000 shares authorized; 150,000 shares
	6.75% non-cumulative perpetual preferred stock, Series A, liquidation
	preference $150.0 million, issued and outstanding, respectively				144,484		144,484		-	144,484	-
Common stock, $2.0833 par value; 100,000,000 shares authorized;
	68,081,306 shares issued; 59,364,696, 59,304,505 and 59,198,963
	shares outstanding, respectively				141,834		141,834		-	141,834	-
Capital surplus					1,633,395		1,634,280		(0.1)	1,635,877	(0.2)
Retained earnings					1,131,597		1,048,532		7.9	1,077,675	5.0
Treasury stock (8,716,610,  8,776,801 and 8,882,343 shares - at cost, respectively)					(303,424)		(305,033)		0.5	(308,964)	1.8
Accumulated other comprehensive loss					(297,906)		(266,640)		(11.7)	(262,416)	(13.5)
Deferred benefits for directors					(2,039)		(1,805)		(13.0)	(1,828)	(11.5)
Total Shareholders' Equity					2,447,941		2,395,652		2.2	2,426,662	0.9
Total Liabilities and Shareholders' Equity					$  17,344,377		$     16,604,747		4.5	$        16,931,905	2.4
NM = Not Meaningful

 

WESBANCO, INC.
Consolidated Selected Financial Highlights									Page 8
(unaudited, dollars in thousands, except shares)
Balance sheet					September 30,		June 30,
Assets					2023		2023		% Change
Cash and due from banks					$       153,012		$         178,057		(14.1)
Due from banks - interest bearing					342,070		384,261		(11.0)
Securities:
	Equity securities, at fair value				11,453		11,948		(4.1)
	Available-for-sale debt securities, at fair value				2,196,141		2,329,222		(5.7)
	Held-to-maturity debt securities (fair values of $998,987;
	and $1,072,229, respectively)				1,210,992		1,224,470		(1.1)
		Allowance for credit losses, held-to-maturity debt securities			(180)		(193)		6.7
	Net held-to-maturity debt securities				1,210,812		1,224,277		(1.1)
		Total securities			3,418,406		3,565,447		(4.1)
Loans held for sale					17,677		28,970		(39.0)
Portfolio loans:
	Commercial real estate				6,387,183		6,295,467		1.5
	Commercial and industrial				1,587,611		1,558,491		1.9
	Residential real estate				2,392,531		2,341,928		2.2
	Home equity				715,186		701,824		1.9
	Consumer				233,362		232,254		0.5
Total portfolio loans, net of unearned income					11,315,873		11,129,964		1.7
Allowance for credit losses - loans					(126,615)		(120,166)		(5.4)
		Net portfolio loans			11,189,258		11,009,798		1.6
Premises and equipment, net					226,377		219,934		2.9
Accrued interest receivable					73,014		69,773		4.6
Goodwill and other intangible assets, net					1,134,510		1,136,773		(0.2)
Bank-owned life insurance					356,962		355,204		0.5
Other assets					433,091		408,737		6.0
Total Assets					$ 17,344,377		$    17,356,954		(0.1)
Liabilities
Deposits:
	Non-interest bearing demand				$    4,169,956		$      4,286,235		(2.7)
	Interest bearing demand				3,278,956		3,273,745		0.2
	Money market				1,905,001		1,685,667		13.0
	Savings deposits				2,559,894		2,655,680		(3.6)
	Certificates of deposit				1,176,421		960,107		22.5
		Total deposits			13,090,228		12,861,434		1.8
Federal Home Loan Bank borrowings					1,125,000		1,380,000		(18.5)
Other short-term borrowings					106,693		101,286		5.3
Subordinated debt and junior subordinated debt					282,079		281,854		0.1
		Total borrowings			1,513,772		1,763,140		(14.1)
Accrued interest payable					11,416		8,869		28.7
Other liabilities					281,020		258,513		8.7
Total Liabilities					14,896,436		14,891,956		0.0
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; 59,364,696, and 59,355,062
	shares outstanding, respectively				141,834		141,834		-
Capital surplus					1,633,395		1,630,963		0.1
Retained earnings					1,131,597		1,118,135		1.2
Treasury stock (8,716,610 and 8,726,244 shares - at cost, respectively)					(303,424)		(303,770)		0.1
Accumulated other comprehensive loss					(297,906)		(264,627)		(12.6)
Deferred benefits for directors					(2,039)		(2,021)		(0.9)
Total Shareholders' Equity					2,447,941		2,464,998		(0.7)
Total Liabilities and Shareholders' Equity					$ 17,344,377		$    17,356,954		(0.1)

 

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 Sept. 30,								For the Nine Months Ended Sept. 30,
				2023				2022				2023				2022
				Average	Average			Average	Average			Average	Average			Average	Average
Assets				Balance	Rate			Balance	Rate			Balance	Rate			Balance	Rate
Due from banks - interest bearing				$        341,206	5.21	%		$       375,136	2.09	%		$        353,312	5.18	%		$          757,325	0.67	%
Loans, net of unearned income (1)				11,271,211	5.46			10,224,494	4.25			11,012,054	5.27			9,958,318	4.02
Securities: (2)
Taxable				3,100,769	2.31			3,548,271	1.96			3,199,826	2.33			3,472,211	1.83
Tax-exempt (3)				778,069	3.02			823,133	3.00			788,250	3.05			782,141	3.02
Total securities				3,878,838	2.46			4,371,404	2.16			3,988,076	2.47			4,254,352	2.05
Other earning assets				60,963	7.41			12,808	4.05			56,207	5.53			13,840	3.89
Total earning assets (3)				15,552,218	4.72	%		14,983,842	3.59	%		15,409,649	4.55	%		14,983,835	3.29	%
Other assets				1,789,741				1,887,813				1,793,998				1,960,951
Total Assets				$  17,341,959				$  16,871,655				$  17,203,647				$     16,944,786
Liabilities and Shareholders' Equity
Interest bearing demand deposits				$     3,294,370	2.51	%		$    3,306,339	0.35	%		$     3,185,340	2.06	%		$       3,363,152	0.20	%
Money market accounts				1,797,562	2.39			1,780,338	0.22			1,689,350	1.77			1,785,703	0.13
Savings deposits				2,604,075	1.02			2,714,684	0.16			2,702,050	0.82			2,681,084	0.08
Certificates of deposit				1,065,140	2.23			1,049,694	0.36			947,404	1.42			1,154,812	0.39
Total interest bearing deposits				8,761,147	2.01			8,851,055	0.27			8,524,144	1.54			8,984,751	0.17
Federal Home Loan Bank borrowings				1,212,554	5.39			113,530	1.22			1,157,821	5.14			138,766	1.29
Repurchase agreements				112,233	2.63			148,179	0.39			116,159	1.90			150,126	0.22
Subordinated debt and junior subordinated debt				281,943	6.06			281,002	4.48			281,715	5.86			237,046	4.02
Total interest bearing liabilities (4)				10,367,877	2.52	%		9,393,766	0.41	%		10,079,839	2.08	%		9,510,689	0.29	%
Non-interest bearing demand deposits				4,225,529				4,779,216				4,393,714				4,690,218
Other liabilities				269,891				209,735				253,410				193,070
Shareholders' equity				2,478,662				2,488,938				2,476,684				2,550,809
Total Liabilities and Shareholders' Equity				$  17,341,959				$  16,871,655				$  17,203,647				$     16,944,786
Taxable equivalent net interest spread					2.20	%			3.18	%			2.47	%			3.00	%
Taxable equivalent net interest margin					3.03	%			3.33	%			3.19	%			3.11	%
(1) Gross of allowance for credit losses and net of unearned income.  Includes non-accrual and loans held for sale.  Loan fees included in interest income on loans were $0.8 million and $1.4 million for the three months ended September 30, 2023 and 2022, respectively, and were $1.9 million and $8.0 million for the nine months ended September 30, 2023 and 2022.   Additionally, loan accretion included in interest income on loans acquired from prior acquisitions was $1.0 million and $1.7 million for the three months ended September 30, 2023 and 2022, respectively, and $3.5 million and $6.2 million for the nine months ended September 30, 2023 and 2022, respectively.
(2) Average yields on available-for-sale debt securities are calculated based on amortized cost.
(3) Taxable equivalent basis is calculated on tax-exempt securities using a rate of 21% for each period presented.
(4) Accretion on interest bearing liabilities acquired from prior acquisitions was $35 thousand and $0.2 million for the three months ended September 30, 2023 and 2022, respectively, and $0.3 million and $0.9 million for the nine months ended September 30, 2023 and 2022, respectively.

 

WESBANCO, INC.
Consolidated Selected Financial Highlights												Page 10
(unaudited, dollars in thousands, except shares and per share amounts)
				Quarter Ended
Statement of Income				Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,
Interest and dividend income				2023		2023		2023		2022		2022
	Loans, including fees			$        155,206		$          145,741		$          133,406		$          123,307		$          109,562
	Interest and dividends on securities:
		Taxable		18,082		18,483		19,086		18,655		17,531
		Tax-exempt		4,679		4,723		4,790		4,853		4,916
			Total interest and dividends on securities	22,761		23,206		23,876		23,508		22,447
	Other interest income			5,622		7,108		3,273		2,103		2,108
Total interest and dividend income				183,589		176,055		160,555		148,918		134,117
Interest expense
	Interest bearing demand deposits			20,873		17,203		11,106		7,264		2,953
	Money market deposits			10,841		7,220		4,252		1,890		968
	Savings deposits			6,699		5,860		4,000		2,454		1,067
	Certificates of deposit			5,983		2,906		1,203		742		958
			Total interest expense on deposits	44,396		33,189		20,561		12,350		5,946
	Federal Home Loan Bank borrowings			16,463		16,713		11,300		2,634		348
	Other short-term borrowings			745		492		418		324		147
	Subordinated debt and junior subordinated debt			4,303		4,094		3,944		3,736		3,175
			Total interest expense	65,907		54,488		36,223		19,044		9,616
Net interest income				117,682		121,567		124,332		129,874		124,501
	Provision for credit losses			6,327		3,028		3,577		3,123		(535)
Net interest income after provision for credit losses				111,355		118,539		120,755		126,751		125,036
Non-interest income
	Trust fees			6,705		6,918		7,494		6,672		6,517
	Service charges on deposits			6,726		6,232		6,170		6,762		6,942
	Electronic banking fees			4,949		5,010		4,605		4,695		4,808
	Net swap fee and valuation income			3,845		2,612		799		1,015		2,430
	Net securities brokerage revenue			2,394		2,523		2,576		2,556		2,491
	Bank-owned life insurance			2,398		3,189		1,959		2,464		1,999
	Mortgage banking income			975		601		426		621		1,257
	Net securities (losses)/gains			(337)		205		145		(600)		656
	Net (losses)/gains on other real estate owned and other assets			(28)		871		232		550		2,040
	Other income			3,252		3,680		3,247		3,035		3,116
			Total non-interest income	30,879		31,841		27,653		27,770		32,256
Non-interest expense
	Salaries and wages			45,351		44,471		41,952		42,606		44,271
	Employee benefits			11,922		11,511		12,060		9,198		10,693
	Net occupancy			6,146		6,132		6,643		6,262		6,489
	Equipment and software			9,132		8,823		9,063		8,712		8,083
	Marketing			3,115		2,763		2,325		1,788		2,377
	FDIC insurance			3,125		2,871		2,884		2,051		2,391
	Amortization of intangible assets			2,262		2,282		2,301		2,541		2,560
	Restructuring and merger-related expense			641		35		3,153		11		66
	Other operating expenses			16,245		17,549		15,744		17,286		15,011
			Total non-interest expense	97,939		96,437		96,125		90,455		91,941
Income before provision for income taxes				44,295		53,943		52,283		64,066		65,351
	Provision for income taxes			7,453		9,063		9,942		11,856		12,318
Net Income				36,842		44,880		42,341		52,210		53,033
Preferred stock dividends				2,531		2,531		2,531		2,531		2,531
Net income available to common shareholders				$          34,311		$            42,349		$            39,810		$            49,679		$            50,502
Taxable equivalent net interest income				$        118,926		$          122,822		$          125,605		$          131,164		$          125,808
Per common share data
Net income per common share - basic				$              0.58		$                0.71		$                0.67		$                0.84		$                0.85
Net income per common share - diluted				0.58		0.71		0.67		0.84		0.85
Net income per common share - diluted, excluding certain items (1)(2)				0.59		0.71		0.71		0.84		0.85
Dividends declared				0.35		0.35		0.35		0.35		0.34
Book value (period end)				38.80		39.10		39.34		38.55		37.96
Tangible book value (period end) (1)				19.82		20.08		20.27		19.43		18.84
Average common shares outstanding - basic				59,358,653		59,263,949		59,217,711		59,188,238		59,549,244
Average common shares outstanding - diluted				59,443,366		59,385,847		59,375,053		59,374,204		59,697,676
Period end common shares outstanding				59,364,696		59,355,062		59,246,569		59,198,963		59,304,505
Period end preferred shares outstanding				150,000		150,000		150,000		150,000		150,000
Full time equivalent employees				2,427		2,542		2,501		2,495		2,480
(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				2023		2023		2023		2022		2022
Non-performing assets:
	Troubled debt restructurings - accruing			$                -		$                -		$                -		$           3,230		$           4,583
	Non-accrual loans:
		Troubled debt restructurings		-		-		-		1,711		1,756
		Other non-accrual loans		29,878		31,555		39,216		36,474		26,428
		Total non-accrual loans		29,878		31,555		39,216		38,185		28,184
		Total non-performing loans		29,878		31,555		39,216		41,415		32,767
	Other real estate and repossessed assets			1,333		1,432		1,554		1,486		1,595
		Total non-performing assets		$       31,211		$         32,987		$         40,770		$         42,901		$         34,362
Past due loans (1):
	Loans past due 30-89 days			$       16,030		$         18,348		$         12,920		$         15,439		$         21,836
	Loans past due 90 days or more			8,606		5,147		4,570		5,443		24,311
		Total past due loans		$       24,636		$         23,495		$         17,490		$         20,882		$         46,147
Criticized and classified loans (2):
	Criticized loans			$    180,136		$       119,771		$       116,608		$       147,945		$       163,176
	Classified loans			70,997		67,036		57,222		102,555		86,861
		Total criticized and classified loans		$    251,133		$       186,807		$       173,830		$       250,500		$       250,037
Loans past due 30-89 days / total portfolio loans				0.14	%	0.16	%	0.12	%	0.14	%	0.21	%
Loans past due 90 days or more / total portfolio loans				0.08		0.05		0.04		0.05		0.24
Non-performing loans / total portfolio loans				0.26		0.28		0.36		0.39		0.32
Non-performing assets / total portfolio loans, other
	real estate and repossessed assets			0.28		0.30		0.37		0.40		0.33
Non-performing assets / total assets				0.18		0.19		0.24		0.25		0.21
Criticized and classified loans / total portfolio loans				2.22		1.68		1.60		2.34		2.43
Allowance for credit losses
Allowance for credit losses - loans				$    126,615		$       120,166		$       118,698		$       117,790		$       114,584
Allowance for credit losses - loan commitments				9,729		10,124		9,127		8,368		8,938
Provision for credit losses				6,327		3,028		3,577		3,123		(535)
Net loan and deposit account overdraft charge-offs and recoveries				286		581		1,919		493		1,102
Annualized net loan charge-offs and recoveries / average loans				0.01	%	0.02	%	0.07	%	0.02	%	0.04	%
Allowance for credit losses - loans / total portfolio loans				1.12	%	1.08	%	1.09	%	1.10	%	1.11	%
Allowance for credit losses - loans / non-performing loans				4.24	x	3.81	x	3.03	x	2.84	x	3.50	x
Allowance for credit losses - loans / non-performing loans and
	loans past due			2.32	x	2.18	x	2.09	x	1.89	x	1.45	x
				Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,
				2023		2023		2023		2022		2022
Capital ratios
Tier I leverage capital				9.84	%	9.78	%	9.82	%	9.90	%	9.68	%
Tier I risk-based capital				12.07		12.12		12.22		12.33		12.51
Total risk-based capital				14.97		14.83		14.97		15.11		15.37
Common equity tier 1 capital ratio (CET 1)				11.00		11.04		11.11		11.20		11.35
Average shareholders' equity to average assets				14.29		14.42		14.48		14.45		14.75
Tangible equity to tangible assets (3)				8.15		8.24		8.33		8.19		8.16
Tangible common equity to tangible assets (3)				7.26		7.35		7.44		7.28		7.22
(1) Excludes non-performing loans.
(2) Criticized and classified commercial loans may include loans that are also reported as non-performing or past due.
(3) See non-GAAP financial measures for additional information relating to the calculation of this ratio.

 

WESBANCO, INC.
Non-GAAP Financial Measures															Page 12
The following non-GAAP financial measures used by WesBanco provide information useful to investors in understanding WesBanco's operating performance and trends, and facilitate comparisons with the performance of WesBanco's peers. The following tables summarize the non-GAAP financial measures derived from amounts reported in WesBanco's financial statements.
				Three Months Ended										Year to Date
				Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,		Sept. 30,
(unaudited, dollars in thousands, except shares and per share amounts)				2023		2023		2023		2022		2022		2023	2022
Return on average assets, excluding after-tax restructuring and merger-related expenses:
	Net income available to common shareholders			$         34,311		$           42,349		$           39,810		$           49,679		$           50,502		$           116,470	$         132,309
	Plus: after-tax restructuring and merger-related expenses  (1)			506		28		2,491		9		52		3,026	1,352
	Net income available to common shareholders excluding after-tax restructuring and merger-related expenses			34,817		42,377		42,301		49,688		50,554		119,496	133,661
	Average total assets			$ 17,341,959		$    17,294,346		$    16,970,554		$    16,685,930		$    16,871,655		$     17,203,647	$    16,944,786
Return on average assets, excluding after-tax restructuring and merger-related expenses (annualized)  (2)				0.80 %		0.98 %		1.01 %		1.18 %		1.19 %		0.93 %	1.05 %
Return on average equity, excluding after-tax restructuring and merger-related expenses:
	Net income available to common shareholders			$         34,311		$           42,349		$           39,810		$           49,679		$           50,502		$           116,470	$         132,309
	Plus: after-tax restructuring and merger-related expenses  (1)			506		28		2,491		9		52		3,026	1,352
	Net income available to common shareholders excluding after-tax restructuring and merger-related expenses			34,817		42,377		42,301		49,688		50,554		119,496	133,661
	Average total shareholders' equity			$   2,478,662		$      2,493,096		$      2,458,067		$      2,410,761		$      2,488,938		$       2,476,684	$      2,550,809
Return on average equity, excluding after-tax  restructuring and merger-related expenses (annualized)  (2)				5.57 %		6.82 %		6.98 %		8.18 %		8.06 %		6.45 %	7.01 %
Return on average tangible equity:
	Net income available to common shareholders			$         34,311		$           42,349		$           39,810		$           49,679		$           50,502		$           116,470	$         132,309
	Plus: amortization of intangibles (1)			1,787		1,803		1,818		2,007		2,022		5,408	6,113
	Net income available to common shareholders before amortization of intangibles			36,098		44,152		41,628		51,686		52,524		121,878	138,422
	Average total shareholders' equity			2,478,662		2,493,096		2,458,067		2,410,761		2,488,938		2,476,684	2,550,809
	Less: average goodwill and other intangibles, net of def. tax liability			(1,127,404)		(1,129,155)		(1,131,027)		(1,132,894)		(1,135,007)		(1,129,182)	(1,137,130)
	Average tangible equity			$   1,351,258		$      1,363,941		$      1,327,040		$      1,277,867		$      1,353,931		$       1,347,502	$      1,413,679
Return on average tangible equity (annualized)  (2)				10.60 %		12.98 %		12.72 %		16.05 %		15.39 %		12.09 %	13.09 %
	Average tangible common equity			$   1,206,774		$      1,219,457		$      1,182,556		$      1,133,383		$      1,209,447		$       1,203,018	$      1,269,195
Return on average tangible common equity (annualized)  (2)				11.87 %		14.52 %		14.28 %		18.10 %		17.23 %		13.55 %	14.58 %
Return on average tangible equity, excluding after-tax restructuring and merger-related expenses:
	Net income available to common shareholders			$         34,311		$           42,349		$           39,810		$           49,679		$           50,502		$           116,470	$         132,309
	Plus: after-tax restructuring and merger-related expenses  (1)			506		28		2,491		9		52		3,026	1,352
	Plus: amortization of intangibles  (1)			1,787		1,803		1,818		2,007		2,022		5,408	6,113
	Net income available to common shareholders before amortization of intangibles
	and excluding after-tax restructuring and merger-related expenses			36,604		44,180		44,119		51,695		52,576		124,904	139,774
	Average total shareholders' equity			2,478,662		2,493,096		2,458,067		2,410,761		2,488,938		2,476,684	2,550,809
	Less: average goodwill and other intangibles, net of def. tax liability			(1,127,404)		(1,129,155)		(1,131,027)		(1,132,894)		(1,135,007)		(1,129,182)	(1,137,130)
	Average tangible equity			$   1,351,258		$      1,363,941		$      1,327,040		$      1,277,867		$      1,353,931		$       1,347,502	$      1,413,679
Return on average tangible equity, excluding after-tax  restructuring and merger-related expenses (annualized)  (2)				10.75 %		12.99 %		13.48 %		16.05 %		15.41 %		12.39 %	13.22 %
	Average tangible common equity			$   1,206,774		$      1,219,457		$      1,182,556		$      1,133,383		$      1,209,447		$       1,203,018	$      1,269,195
Return on average tangible common equity, excluding after-tax restructuring and merger-related expenses (annualized)  (2)				12.03 %		14.53 %		15.13 %		18.10 %		17.25 %		13.88 %	14.72 %
Efficiency ratio:
	Non-interest expense			$         97,939		$           96,437		$           96,125		$           90,455		$           91,941		$           290,498	$         266,511
	Less: restructuring and merger-related expense			(641)		(35)		(3,153)		(11)		(66)		(3,830)	(1,712)
	Non-interest expense excluding restructuring and merger-related expense			97,298		96,402		92,972		90,444		91,875		286,668	264,799
	Net interest income on a fully taxable equivalent basis			118,926		122,822		125,605		131,164		125,808		367,352	348,151
	Non-interest income			30,879		31,841		27,653		27,770		32,256		90,372	89,622
	Net interest income on a fully taxable equivalent basis plus non-interest income			$       149,805		$         154,663		$         153,258		$         158,934		$         158,064		$           457,724	$         437,773
	Efficiency ratio			64.95 %		62.33 %		60.66 %		56.91 %		58.13 %		62.63 %	60.49 %
Net income available to common shareholders, excluding after-tax restructuring and merger-related expenses:
	Net income available to common shareholders			$         34,311		$           42,349		$           39,810		$           49,679		$           50,502		$           116,470	$         132,309
	Add: After-tax restructuring and merger-related expenses (1)			506		28		2,491		9		52		3,026	1,352
Net income available to common shareholders, excluding after-tax restructuring and merger-related expenses				$         34,817		$           42,377		$           42,301		$           49,688		$           50,554		$           119,496	$         133,661
Net income per common share - diluted, excluding after-tax restructuring and merger-related expenses:
	Net income per common share - diluted			$              0.58		$               0.71		$               0.67		$               0.84		$               0.85		$                 1.96	$               2.19
	Add: After-tax restructuring and merger-related expenses per common share - diluted (1)			0.01		-		0.04		-		-		0.05	0.02
Net income per common share - diluted, excluding after-tax restructuring and merger-related expenses				$              0.59		$               0.71		$               0.71		$               0.84		$               0.85		$                 2.01	$               2.21
				Period End
				Sept. 30,		June 30,		March 31,		Dec. 31,		Sept. 30,
				2023		2023		2023		2022		2022
Tangible book value per share:
	Total shareholders' equity			$   2,447,941		$      2,464,998		$      2,475,457		$      2,426,662		$      2,395,652
	Less:  goodwill and other intangible assets, net of def. tax liability			(1,126,583)		(1,128,371)		(1,130,172)		(1,131,990)		(1,133,998)
	Less: preferred shareholder's equity			(144,484)		(144,484)		(144,484)		(144,484)		(144,484)
	Tangible common equity			1,176,874		1,192,143		1,200,801		1,150,188		1,117,170
	Common shares outstanding			59,364,696		59,355,062		59,246,569		59,198,963		59,304,505
Tangible book value per share				$           19.82		$             20.08		$             20.27		$             19.43		$             18.84
Tangible common equity to tangible assets:
	Total shareholders' equity			$    2,447,941		$      2,464,998		$      2,475,457		$      2,426,662		$      2,395,652
	Less:  goodwill and other intangible assets, net of def. tax liability			(1,126,583)		(1,128,371)		(1,130,172)		(1,131,990)		(1,133,998)
	Tangible equity			1,321,358		1,336,627		1,345,285		1,294,672		1,261,654
	Less: preferred shareholder's equity			(144,484)		(144,484)		(144,484)		(144,484)		(144,484)
	Tangible common equity			1,176,874		1,192,143		1,200,801		1,150,188		1,117,170
	Total assets			17,344,377		17,356,954		17,274,626		16,931,905		16,604,747
	Less:  goodwill and other intangible assets, net of def. tax liability			(1,126,583)		(1,128,371)		(1,130,172)		(1,131,990)		(1,133,998)
	Tangible assets			$  16,217,794		$    16,228,583		$    16,144,454		$    15,799,915		$    15,470,749
Tangible equity to tangible assets				8.15 %		8.24 %		8.33 %		8.19 %		8.16 %
Tangible common equity to tangible assets				7.26 %		7.35 %		7.44 %		7.28 %		7.22 %
(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)				2023		2023		2023		2022		2022		2023	2022
Pre-tax, pre-provision income:
	Income before provision for income taxes			$         44,295		$           53,943		$           52,283		$           64,066		$           65,351		$       150,522	$         172,335
	Add: provision for credit losses			6,327		3,028		3,577		3,123		(535)		12,932	(4,785)
Pre-tax, pre-provision income				$         50,622		$           56,971		$           55,860		$           67,189		$           64,816		$       163,454	$         167,550
Pre-tax, pre-provision income, excluding restructuring and merger-related expenses:
	Income before provision for income taxes			$         44,295		$           53,943		$           52,283		$           64,066		$           65,351		$       150,522	$         172,335
	Add: provision for credit losses			6,327		3,028		3,577		3,123		(535)		12,932	(4,785)
	Add: restructuring and merger-related expenses			641		35		3,153		11		66		3,830	1,712
Pre-tax, pre-provision income, excluding restructuring and merger-related expenses				$         51,263		$           57,006		$           59,013		$           67,200		$           64,882		$       167,284	$         169,262
Return on average assets, excluding certain items (1):
	Income before provision for income taxes			$         44,295		$           53,943		$           52,283		$           64,066		$           65,351		$       150,522	$         172,335
	Add: provision for credit losses			6,327		3,028		3,577		3,123		(535)		12,932	(4,785)
	Add: restructuring and merger-related expenses			641		35		3,153		11		66		3,830	1,712
Pre-tax, pre-provision income, excluding restructuring and merger-related expenses				51,263		57,006		59,013		67,200		64,882		167,284	169,262
	Average total assets			$  17,341,959		$    17,294,346		$    16,970,554		$    16,685,930		$    16,871,655		$  17,203,647	$    16,944,786
Return on average assets, excluding certain items (annualized)  (1) (2)				1.17 %		1.32 %		1.41 %		1.60 %		1.53 %		1.30 %	1.34 %
Return on average equity, excluding certain items (1):
	Income before provision for income taxes			$         44,295		$           53,943		$           52,283		$           64,066		$           65,351		$       150,522	$         172,335
	Add: provision for credit losses			6,327		3,028		3,577		3,123		(535)		12,932	(4,785)
	Add: restructuring and merger-related expenses			641		35		3,153		11		66		3,830	1,712
Pre-tax, pre-provision income, excluding restructuring and merger-related expenses				51,263		57,006		59,013		67,200		64,882		167,284	169,262
	Average total shareholders' equity			$   2,478,662		$      2,493,096		$      2,458,067		$      2,410,761		$      2,488,938		$   2,476,684	$      2,550,809
Return on average equity, excluding certain items (annualized) (1) (2)				8.21 %		9.17 %		9.74 %		11.06 %		10.34 %		9.03 %	8.87 %
Return on average tangible equity, excluding certain items (1):
	Income before provision for income taxes			$         44,295		$           53,943		$           52,283		$           64,066		$           65,351		$       150,522	$         172,335
	Add: provision for credit losses			6,327		3,028		3,577		3,123		(535)		12,932	(4,785)
	Add: amortization of intangibles			2,262		2,282		2,301		2,541		2,560		6,845	7,738
	Add: restructuring and merger-related expenses			641		35		3,153		11		66		3,830	1,712
Income before provision, restructuring and merger-related expenses and amortization of intangibles				53,525		59,288		61,314		69,741		67,442		174,129	177,000
	Average total shareholders' equity			2,478,662		2,493,096		2,458,067		2,410,761		2,488,938		2,476,684	2,550,809
	Less: average goodwill and other intangibles, net of def. tax liability			(1,127,404)		(1,129,155)		(1,131,027)		(1,132,894)		(1,135,007)		(1,129,182)	(1,137,130)
	Average tangible equity			$   1,351,258		$      1,363,941		$      1,327,040		$      1,277,867		$      1,353,931		$   1,347,502	$      1,413,679
Return on average tangible equity, excluding certain items (annualized) (1) (2)				15.72 %		17.44 %		18.74 %		21.65 %		19.76 %		17.28 %	16.74 %
	Average tangible common equity			$   1,206,774		$      1,219,457		$      1,182,556		$      1,133,383		$      1,209,447		$   1,203,018	$      1,269,195
Return on average tangible common equity, excluding certain items (annualized) (1) (2)				17.60 %		19.50 %		21.03 %		24.41 %		22.12 %		19.35 %	18.65 %
(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 is the net income for Q3 2023?

The net income for Q3 2023 was $34.3 million.

What is the total loan growth?

The total loan growth was 10.1% year-over-year and 7.6% annualized.

How is the credit quality?

The credit quality metrics remain favorable.

Is WesBanco well-capitalized?

Yes, WesBanco remains well-capitalized.