EX-99 2 wsbc-ex99_1.htm EX-99.1 EX-99

 

img235408680_0.jpg 

 

 

WesBanco Announces First Quarter 2023 Financial Results

 

 

Wheeling, WVa. (April 24, 2023) – WesBanco, Inc. (“WesBanco”) (Nasdaq: WSBC), a diversified, multi-state bank holding company, today announced net income and related earnings per share for the three months ended March 31, 2023. Net income available to common shareholders for the first quarter of 2023 was $39.8 million, with diluted earnings per share of $0.67, compared to $41.6 million and $0.68 per diluted share, respectively, for the first quarter of 2022. As noted in the following table, net income available to common shareholders, excluding after-tax restructuring and merger-related expenses, for the three months ended March 31, 2023, was $42.3 million, or $0.71 per diluted share, as compared to $42.9 million and $0.70 per diluted share, respectively, in the prior year quarter (non-GAAP measures).

 

 

 

For the Three Months Ended March 31,

 

 

 

 

2023

 

 

2022

 

 

(unaudited, dollars in thousands,
except per share amounts)

 

Net
Income

 

 

Diluted
Earnings
Per Share

 

 

Net
Income

 

 

Diluted
Earnings
Per Share

 

 

Net income available to common shareholders (Non-GAAP)(1)

$

42,301

 

 

$

0.71

 

 

$

42,851

 

 

$

0.70

 

 

Less: After tax restructuring and merger-related expenses

 

(2,491

)

 

 

(0.04

)

 

 

(1,258

)

 

 

(0.02

)

 

Net income available to common shareholders (GAAP)

$

39,810

 

 

$

0.67

 

 

$

41,593

 

 

$

0.68

 

 

(1) See non-GAAP financial measures for additional information relating to these items.

 

Financial and operational highlights during the quarter ended March 31, 2023:

•
Generated solid growth in pre-tax, pre-provision income (excluding restructuring and merger-related expenses) of 13.2% year-over-year (non-GAAP)
•
Total loan growth was 11.9% year-over-year and 7.0% annualized when compared to December 31, 2022, reflecting the strength of our markets and lending teams
•
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 with capacity to fund loan growth
o
Returns on average assets and tangible equity were 1.01% and 13.48%, respectively (non-GAAP)
o
Average loans to average deposits were 83.5%
•
Strong new commercial swap fee income, excluding fair market value adjustments, increased $1.7 million year-over-year
•
Controlled discretionary expenses, while continuing to make important long-term growth investments
•
WesBanco continues to be acknowledged for its soundness, profitability, employee focus, and customer service as it continued to receive numerous national accolades the last few months
o
For the 13th time since 2010, named one of America’s Best Banks for strong capital, credit quality, and profitability
o
For the third consecutive year, voted one of America’s Best Midsize Employers by our employees
o
For the fifth year in a row, recognized by our customers as one of the World’s Best Banks

“WesBanco demonstrated the earnings power, capital, and liquidity to perform well during a quarter of industry volatility,” said Todd F. Clossin, President and Chief Executive Officer of WesBanco. “I am pleased with both the company’s performance and our employees continued commitment to serving the needs of our customers and communities. The recent naming of our company as One of America's Best Banks, and One of America's Best Midsize Employers by Forbes is a testament to the dedicated efforts of our teams.”

Jeffrey H. Jackson, Senior Executive Vice President and Chief Operating Officer added, “We continued to effectively execute our strategic business plans, during the quarter, as evidenced by our solid loan growth across all markets, disciplined expense management, and excellent credit quality. Our deposit granularity, as evidenced by our average deposit account size of $27,000, reflects the trust our customers have in our 153-year heritage as a community bank. Our current loan to deposit ratio of 83% also provides us with ample lending capacity to support our customers as they grow.”

 

Balance Sheet

Loan growth for the first quarter of 2023 continues to reflect strong performance by our commercial and consumer lending teams, as well as more 1-to-4 family residential mortgages retained on the balance sheet. As of March 31, 2023, total portfolio loans were $10.9 billion, which increased 7.0% annualized, when compared to December 31, 2022, driven by strong growth across our markets, and the total commercial pipeline was $1.1 billion. Further, commercial real estate payoffs during the first quarter remained in the historical range of approximately $90 million.

Total deposits, as of March 31, 2023, were $12.9 billion, down 2.0%, when compared to December 31, 2022, reflecting the impact of rate and inflationary pressures and rising costs across the economy. Further, the Federal Reserve’s tightening actions to control inflation have resulted in industry-wide deposit contraction. Deposits declined approximately $360 million early during the quarter and remained flat through February and March. Despite the decrease in deposits, early in the quarter, the average loans to average deposits ratio remained relatively low at 83.5% for the first quarter of 2023.

Credit Quality

As of March 31, 2023, total loans past due, non-performing loans, and non-performing assets as percentages of the loan portfolio and total assets have remained low, from a historical perspective, and within a consistent range throughout the last five quarters. Total loans past due as a percent of the loan portfolio decreased 4 basis points from the fourth quarter and 19 basis points from the prior year, while criticized and classified loans as a percent of the loan portfolio decreased 74 and 208 basis points, respectively, to 1.60%. For the first quarter, net loan charge-offs totaled $1.9 million, mostly related to one long-term care facility credit. During the first quarter of 2023, we recorded a provision for credit losses of $3.6 million, as compared to a release of provision in the prior year period of $3.4 million. Reflecting the current recorded provision and loan growth, as well as changes in prepayment assumptions, the allowance for credit losses to total portfolio loans at March 31, 2023 was $118.7 million, or 1.09% of total loans.

Net Interest Margin and Income

The net interest margin of 3.36% for the first quarter of 2023 increased 41 basis points year-over-year, which reflects the 425 basis point increase in the federal fund rate since March 2022, as well as our successful deployment of excess cash into higher-yielding loans. However, the net interest margin decreased 13 basis points from the fourth quarter of 2022 primarily due to higher funding costs as lower cost deposits were replaced with higher cost wholesale borrowings. While our robust legacy deposit base provides a pricing advantage, we are not immune to the impact of rising interest rates on our funding sources, including rising competitive rates for public funds, which totaled approximately $1.4 billion at March 31, 2023. Total deposit funding costs of 100 basis points for the first quarter of 2023 increased 88 basis points year-over-year and 43 quarter-over-quarter, or 57 and 28 basis points, respectively, when including non-interest bearing deposits. This reflects a total deposit beta of 13%, when compared to the 425 basis point increase in the federal fund rate from May 2022 through February 2023. Accretion from acquisitions benefited the first quarter net interest margin by 4 basis points, as compared to 8 basis points in the prior year period.

Net interest income increased $16.6 million, or 15.4%, during the first quarter of 2023, as compared to the same quarter of 2022, reflecting loan growth and the benefit of rising rates on loan and securities yields, which more than offset higher funding costs.

Non-Interest Income

For the first quarter of 2023, non-interest income of $27.7 million decreased $2.7 million, or 9.0%, from the first quarter of 2022, driven primarily by lower bank-owned life insurance and mortgage banking income. Bank-owned life insurance decreased $1.9 million year-over-year due to $1.9 million of higher death benefits received in the prior year period. Mortgage banking income decreased $1.5 million year-over-year due to a reduction in residential mortgage originations, primarily driven by the higher interest rate environment, and our retention of more residential mortgages on the balance sheet as production continues to migrate towards shorter-term adjustable rate mortgage products. First quarter mortgage originations decreased 40% year-over-year to $162 million, with approximately 70% retained, as compared to 75% last year. New commercial swap fees, which are recorded in other income, increased $1.7 million from the prior year period to $1.8 million, while associated fair market value adjustments totaled negative $1.0 million during the first quarter, as compared to a positive $1.5 million last year.

Non-Interest Expense

Excluding restructuring and merger-related expenses, non-interest expense for the three months ended March 31, 2023 totaled $93.0 million, an increase of 8.2% year-over-year, reflecting increased salaries and wages, benefits, FDIC insurance, and equipment expense, partially offset by discretionary cost control. Salaries and wages increased $3.0 million, or 7.7%, compared to the prior year period due to higher salary expense related to higher staffing levels, mainly revenue-producing positions, and merit increases. Employee benefits increased $2.9 million from last year due to higher staffing levels, increased pension expense, and higher health insurance contributions. FDIC insurance expense increased $1.4 million year-over-year due to the 2 basis point increase in the minimum rate for all banks. Equipment and software expense increased $1.1 million due to the planned upgrade to one-third of our ATM fleet with the latest technology and general inflationary cost increases for existing service agreements. Lastly, restructuring charges of $3.2 million during the quarter reflect the associated write-downs of leases and fixed assets related to five properties, two of which are larger back-office facilities, to be closed later this year.

 

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 March 31, 2023, Tier I leverage was 9.82%, Tier I risk-based capital ratio was 12.22%, common equity Tier 1 capital ratio (“CET 1”) was 11.11%, and total risk-based capital was 14.97%. In addition, tangible common equity to tangible assets improved 16 basis points on a sequential quarter basis to 7.44%.

Conference Call and Webcast

WesBanco will host a conference call to discuss the Company's financial results for the first quarter of 2023 at 10:00 a.m. ET on Tuesday, April 25, 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 7397505. The replay will begin at approximately 12:00 p.m. ET on April 25, 2023 and end at 12 a.m. ET on May 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”), 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. 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. In addition to a full range of online and mobile banking options and a full-suite of commercial products and services, WesBanco provides trust, wealth management, securities brokerage, and private banking services through our century-old Trust and Investment Services department, with approximately $5.0 billion of assets under management (as of March 31, 2023). 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. Learn more at www.wesbanco.com. Follow @WesBanco on Facebook, LinkedIn, and Twitter.

SOURCE: WesBanco, Inc.

WesBanco Company Contact:

John H. Iannone

Senior Vice President, Investor and Public Relations

304-905-7021

###

 

 

WESBANCO, INC.

Consolidated Selected Financial Highlights

(unaudited, dollars in thousands, except shares and per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

 

STATEMENT OF INCOME

 

March 31,

 

 

 

 

 

2023

 

 

2022

 

 

% Change

 

 

 

Interest and dividend income

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

133,406

 

 

$

93,121

 

 

 

43.3

 

 

 

Interest and dividends on securities:

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

19,086

 

 

 

14,112

 

 

 

35.2

 

 

 

Tax-exempt

 

 

4,790

 

 

 

4,344

 

 

 

10.3

 

 

 

Total interest and dividends on securities

 

 

23,876

 

 

 

18,456

 

 

 

29.4

 

 

 

Other interest income

 

 

3,273

 

 

 

597

 

 

 

448.2

 

 

 

          Total interest and dividend income

 

 

160,555

 

 

 

112,174

 

 

 

43.1

 

 

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

Interest bearing demand deposits

 

 

11,106

 

 

 

811

 

 

NM

 

 

 

Money market deposits

 

 

4,252

 

 

 

321

 

 

NM

 

 

 

Savings deposits

 

 

4,000

 

 

 

264

 

 

NM

 

 

 

Certificates of deposit

 

 

1,203

 

 

 

1,273

 

 

 

(5.5

)

 

 

Total interest expense on deposits

 

 

20,561

 

 

 

2,669

 

 

 

670.4

 

 

 

Federal Home Loan Bank borrowings

 

 

11,300

 

 

 

575

 

 

NM

 

 

 

Other short-term borrowings

 

 

418

 

 

 

48

 

 

 

770.8

 

 

 

Subordinated debt and junior subordinated debt

 

 

3,944

 

 

 

1,171

 

 

 

236.8

 

 

 

Total interest expense

 

 

36,223

 

 

 

4,463

 

 

 

711.6

 

 

 

Net interest income

 

 

124,332

 

 

 

107,711

 

 

 

15.4

 

 

 

Provision for credit losses

 

 

3,577

 

 

 

(3,438

)

 

 

204.0

 

 

 

Net interest income after provision for credit losses

 

 

120,755

 

 

 

111,149

 

 

 

8.6

 

 

 

Non-interest income

 

 

 

 

 

 

 

 

 

 

 

Trust fees

 

 

7,494

 

 

 

7,835

 

 

 

(4.4

)

 

 

Service charges on deposits

 

 

6,170

 

 

 

6,090

 

 

 

1.3

 

 

 

Electronic banking fees

 

 

4,605

 

 

 

5,345

 

 

 

(13.8

)

 

 

Net securities brokerage revenue

 

 

2,576

 

 

 

2,220

 

 

 

16.0

 

 

 

Bank-owned life insurance

 

 

1,959

 

 

 

3,881

 

 

 

(49.5

)

 

 

Mortgage banking income

 

 

426

 

 

 

1,923

 

 

 

(77.8

)

 

 

Net securities gains/(losses)

 

 

145

 

 

 

(650

)

 

 

122.3

 

 

 

Net gain/(loss) on other real estate owned and other assets

 

 

232

 

 

 

(806

)

 

 

128.8

 

 

 

Other income

 

 

4,046

 

 

 

4,544

 

 

 

(11.0

)

 

 

Total non-interest income

 

 

27,653

 

 

 

30,382

 

 

 

(9.0

)

 

 

Non-interest expense

 

 

 

 

 

 

 

 

 

 

 

Salaries and wages

 

 

41,952

 

 

 

38,937

 

 

 

7.7

 

 

 

Employee benefits

 

 

12,060

 

 

 

9,158

 

 

 

31.7

 

 

 

Net occupancy

 

 

6,643

 

 

 

7,234

 

 

 

(8.2

)

 

 

Equipment and software

 

 

9,063

 

 

 

8,011

 

 

 

13.1

 

 

 

Marketing

 

 

2,325

 

 

 

2,421

 

 

 

(4.0

)

 

 

FDIC insurance

 

 

2,884

 

 

 

1,522

 

 

 

89.5

 

 

 

Amortization of intangible assets

 

 

2,301

 

 

 

2,598

 

 

 

(11.4

)

 

 

Restructuring and merger-related expense

 

 

3,153

 

 

 

1,593

 

 

 

97.9

 

 

 

Other operating expenses

 

 

15,744

 

 

 

16,074

 

 

 

(2.1

)

 

 

Total non-interest expense

 

 

96,125

 

 

 

87,548

 

 

 

9.8

 

 

 

Income before provision for income taxes

 

 

52,283

 

 

 

53,983

 

 

 

(3.1

)

 

 

Provision for income taxes

 

 

9,942

 

 

 

9,859

 

 

 

0.8

 

 

 

Net Income

 

 

42,341

 

 

 

44,124

 

 

 

(4.0

)

 

 

Preferred stock dividends

 

 

2,531

 

 

 

2,531

 

 

 

-

 

 

 

Net income available to common shareholders

 

$

39,810

 

 

$

41,593

 

 

 

(4.3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable equivalent net interest income

 

$

125,605

 

 

$

108,866

 

 

 

15.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per common share data

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - basic

 

$

0.67

 

 

$

0.68

 

 

 

(1.5

)

 

 

Net income per common share - diluted

 

 

0.67

 

 

 

0.68

 

 

 

(1.5

)

 

 

Net income per common share - diluted, excluding certain items (1)(2)

 

 

0.71

 

 

 

0.70

 

 

 

1.4

 

 

 

Dividends declared

 

 

0.35

 

 

 

0.34

 

 

 

2.9

 

 

 

Book value (period end)

 

 

39.34

 

 

 

39.64

 

 

 

(0.8

)

 

 

Tangible book value (period end) (1)

 

 

20.27

 

 

 

20.87

 

 

 

(2.9

)

 

 

Average common shares outstanding - basic

 

 

59,217,711

 

 

 

61,445,399

 

 

 

(3.6

)

 

 

Average common shares outstanding - diluted

 

 

59,375,053

 

 

 

61,593,365

 

 

 

(3.6

)

 

 

Period end common shares outstanding

 

 

59,246,569

 

 

 

60,613,414

 

 

 

(2.3

)

 

 

Period end preferred shares outstanding

 

 

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

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Selected ratios

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

 

 

March 31,

 

 

 

 

2023

 

 

2022

 

 

% Change

 

 

 

Return on average assets

 

0.95

 

%

 

0.99

 

%

 

(4.04

)

%

 

Return on average assets, excluding after-tax restructuring and merger-related expenses (1)

 

1.01

 

 

 

1.02

 

 

 

(0.98

)

 

 

Return on average equity

 

6.57

 

 

 

6.35

 

 

 

3.46

 

 

 

Return on average equity, excluding after-tax restructuring and merger-related expenses (1)

 

6.98

 

 

 

6.54

 

 

 

6.73

 

 

 

Return on average tangible equity (1)

 

12.72

 

 

 

11.67

 

 

 

9.00

 

 

 

Return on average tangible equity, excluding after-tax restructuring and merger-related expenses (1)

 

13.48

 

 

 

12.01

 

 

 

12.24

 

 

 

Return on average tangible common equity (1)

 

14.28

 

 

 

12.90

 

 

 

10.70

 

 

 

Return on average tangible common equity, excluding after-tax restructuring and merger-related expenses (1)

 

15.13

 

 

 

13.27

 

 

 

14.02

 

 

 

Yield on earning assets (2)

 

4.32

 

 

 

3.07

 

 

 

40.72

 

 

 

Cost of interest bearing liabilities

 

1.52

 

 

 

0.19

 

 

 

700.00

 

 

 

Net interest spread (2)

 

2.80

 

 

 

2.88

 

 

 

(2.78

)

 

 

Net interest margin (2)

 

3.36

 

 

 

2.95

 

 

 

13.90

 

 

 

Efficiency (1) (2)

 

60.66

 

 

 

61.73

 

 

 

(1.73

)

 

 

Average loans to average deposits

 

83.46

 

 

 

71.05

 

 

 

17.47

 

 

 

Annualized net loan charge-offs/average loans

 

0.07

 

 

 

0.00

 

 

 

100.00

 

 

 

Effective income tax rate

 

19.02

 

 

 

18.26

 

 

 

4.16

 

 

 

 

For the Three Months Ended

 

 

 

Mar. 31,

 

 

Dec. 31,

 

 

Sept. 30,

 

 

June 30,

 

 

Mar. 31,

 

 

 

2023

 

 

2022

 

 

2022

 

 

2022

 

 

2022

 

 

Return on average assets

 

0.95

 

%

 

1.18

 

%

 

1.19

 

%

 

0.95

 

%

 

0.99

 

%

Return on average assets, excluding after-tax restructuring and merger-related expenses (1)

 

1.01

 

 

 

1.18

 

 

 

1.19

 

 

 

0.95

 

 

 

1.02

 

 

Return on average equity

 

6.57

 

 

 

8.18

 

 

 

8.05

 

 

 

6.43

 

 

 

6.35

 

 

Return on average equity, excluding after-tax restructuring and merger-related expenses (1)

 

6.98

 

 

 

8.18

 

 

 

8.06

 

 

 

6.43

 

 

 

6.54

 

 

Return on average tangible equity (1)

 

12.72

 

 

 

16.05

 

 

 

15.39

 

 

 

12.35

 

 

 

11.67

 

 

Return on average tangible equity, excluding after-tax restructuring and merger-related expenses (1)

 

13.48

 

 

 

16.05

 

 

 

15.41

 

 

 

12.36

 

 

 

12.01

 

 

Return on average tangible common equity (1)

 

14.28

 

 

 

18.09

 

 

 

17.23

 

 

 

13.80

 

 

 

12.90

 

 

Return on average tangible common equity, excluding after-tax restructuring and merger-related expenses (1)

 

15.13

 

 

 

18.10

 

 

 

17.25

 

 

 

13.82

 

 

 

13.27

 

 

Yield on earning assets (2)

 

4.32

 

 

 

4.00

 

 

 

3.59

 

 

 

3.20

 

 

 

3.07

 

 

Cost of interest bearing liabilities

 

1.52

 

 

 

0.82

 

 

 

0.41

 

 

 

0.26

 

 

 

0.19

 

 

Net interest spread (2)

 

2.80

 

 

 

3.18

 

 

 

3.18

 

 

 

2.94

 

 

 

2.88

 

 

Net interest margin (2)

 

3.36

 

 

 

3.49

 

 

 

3.33

 

 

 

3.03

 

 

 

2.95

 

 

Efficiency (1) (2)

 

60.66

 

 

 

56.91

 

 

 

58.13

 

 

 

61.91

 

 

 

61.73

 

 

Average loans to average deposits

 

83.46

 

 

 

78.43

 

 

 

75.01

 

 

 

72.36

 

 

 

71.05

 

 

Annualized net loan charge-offs and recoveries /average loans

 

0.07

 

 

 

0.02

 

 

 

0.04

 

 

 

0.00

 

 

 

0.00

 

 

Effective income tax rate

 

19.02

 

 

 

18.51

 

 

 

18.85

 

 

 

19.35

 

 

 

18.26

 

 

Trust assets, market value at period end

$

5,026,631

 

 

$

4,878,479

 

 

$

4,622,878

 

 

$

4,803,043

 

 

$

5,412,342

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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

 

(unaudited, dollars in thousands, except shares)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

% Change

 

 

 

 

March 31,

 

 

 

 

December 31,

 

December 31, 2022

 

 

Balance sheets

 

2023

 

 

2022

 

 

% Change

 

2022

 

to March 31, 2023

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

152,756

 

 

$

200,513

 

 

 

(23.8

)

$

166,182

 

 

(8.1

)

 

Due from banks - interest bearing

 

 

444,747

 

 

 

1,168,985

 

 

 

(62.0

)

 

242,229

 

 

83.6

 

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities, at fair value

 

 

11,843

 

 

 

12,757

 

 

 

(7.2

)

 

11,506

 

 

2.9

 

 

Available-for-sale debt securities, at fair value

 

 

2,465,996

 

 

 

2,911,373

 

 

 

(15.3

)

 

2,529,140

 

 

(2.5

)

 

Held-to-maturity debt securities (fair values of $1,107,685; $1,092,993, and $1,084,390, respectively)

 

 

1,239,247

 

 

 

1,157,202

 

 

 

7.1

 

 

1,248,629

 

 

(0.8

)

 

Allowance for credit losses - held-to-maturity debt securities

 

 

(212

)

 

 

(285

)

 

 

25.6

 

 

(220

)

 

3.6

 

 

Net held-to-maturity debt securities

 

 

1,239,035

 

 

 

1,156,917

 

 

 

7.1

 

 

1,248,409

 

 

(0.8

)

 

Total securities

 

 

3,716,874

 

 

 

4,081,047

 

 

 

(8.9

)

 

3,789,055

 

 

(1.9

)

 

Loans held for sale

 

 

12,722

 

 

 

15,959

 

 

 

(20.3

)

 

8,249

 

 

54.2

 

 

Portfolio loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

6,197,844

 

 

 

5,580,082

 

 

 

11.1

 

 

6,061,344

 

 

2.3

 

 

Commercial and industrial

 

 

1,519,808

 

 

 

1,513,078

 

 

 

0.4

 

 

1,579,395

 

 

(3.8

)

 

Residential real estate

 

 

2,251,423

 

 

 

1,767,064

 

 

 

27.4

 

 

2,140,584

 

 

5.2

 

 

Home equity

 

 

692,001

 

 

 

592,872

 

 

 

16.7

 

 

695,065

 

 

(0.4

)

 

Consumer

 

 

227,612

 

 

 

280,176

 

 

 

(18.8

)

 

226,340

 

 

0.6

 

 

Total portfolio loans, net of unearned income

 

 

10,888,688

 

 

 

9,733,272

 

 

 

11.9

 

 

10,702,728

 

 

1.7

 

 

Allowance for credit losses - loans

 

 

(118,698

)

 

 

(117,865

)

 

 

(0.7

)

 

(117,790

)

 

(0.8

)

 

Net portfolio loans

 

 

10,769,990

 

 

 

9,615,407

 

 

 

12.0

 

 

10,584,938

 

 

1.7

 

 

Premises and equipment, net

 

 

224,940

 

 

 

219,907

 

 

 

2.3

 

 

220,892

 

 

1.8

 

 

Accrued interest receivable

 

 

69,232

 

 

 

60,370

 

 

 

14.7

 

 

68,522

 

 

1.0

 

 

Goodwill and other intangible assets, net

 

 

1,139,054

 

 

 

1,149,035

 

 

 

(0.9

)

 

1,141,355

 

 

(0.2

)

 

Bank-owned life insurance

 

 

354,320

 

 

 

348,179

 

 

 

1.8

 

 

352,361

 

 

0.6

 

 

Other assets

 

 

389,991

 

 

 

244,613

 

 

 

59.4

 

 

358,122

 

 

8.9

 

 

Total Assets

 

$

17,274,626

 

 

$

17,104,015

 

 

 

1.0

 

$

16,931,905

 

 

2.0

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing demand

 

$

4,478,954

 

 

$

4,670,520

 

 

 

(4.1

)

$

4,700,438

 

 

(4.7

)

 

Interest bearing demand

 

 

3,107,112

 

 

 

3,405,610

 

 

 

(8.8

)

 

3,119,807

 

 

(0.4

)

 

Money market

 

 

1,618,204

 

 

 

1,831,683

 

 

 

(11.7

)

 

1,684,023

 

 

(3.9

)

 

Savings deposits

 

 

2,784,780

 

 

 

2,679,053

 

 

 

3.9

 

 

2,741,004

 

 

1.6

 

 

Certificates of deposit

 

 

884,146

 

 

 

1,211,008

 

 

 

(27.0

)

 

885,818

 

 

(0.2

)

 

Total deposits

 

 

12,873,196

 

 

 

13,797,874

 

 

 

(6.7

)

 

13,131,090

 

 

(2.0

)

 

Federal Home Loan Bank borrowings

 

 

1,280,000

 

 

 

123,898

 

 

 

933.1

 

 

705,000

 

 

81.6

 

 

Other short-term borrowings

 

 

111,176

 

 

 

158,538

 

 

 

(29.9

)

 

135,069

 

 

(17.7

)

 

Subordinated debt and junior subordinated debt

 

 

281,629

 

 

 

280,743

 

 

 

0.3

 

 

281,404

 

 

0.1

 

 

Total borrowings

 

 

1,672,805

 

 

 

563,179

 

 

 

197.0

 

 

1,121,473

 

 

49.2

 

 

Accrued interest payable

 

 

7,669

 

 

 

1,786

 

 

 

329.4

 

 

4,593

 

 

67.0

 

 

Other liabilities

 

 

245,499

 

 

 

193,860

 

 

 

26.6

 

 

248,087

 

 

(1.0

)

 

Total Liabilities

 

 

14,799,169

 

 

 

14,556,699

 

 

 

1.7

 

 

14,505,243

 

 

2.0

 

 

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

 

 

 

-

 

 

144,484

 

 

-

 

 

Common stock, $2.0833 par value; 100,000,000 shares authorized; 68,081,306 shares issued; 59,246,569, 60,613,414 and 59,198,963 shares outstanding, respectively

 

 

141,834

 

 

 

141,834

 

 

 

-

 

 

141,834

 

 

-

 

 

Capital surplus

 

 

1,636,061

 

 

 

1,636,705

 

 

 

-

 

 

1,635,877

 

 

-

 

 

Retained earnings

 

 

1,096,924

 

 

 

998,315

 

 

 

9.9

 

 

1,077,675

 

 

1.8

 

 

Treasury stock (8,834,737, 7,467,892 and 8,882,343 shares - at cost, respectively)

 

 

(307,507

)

 

 

(261,012

)

 

 

(17.8

)

 

(308,964

)

 

0.5

 

 

Accumulated other comprehensive loss

 

 

(234,399

)

 

 

(111,312

)

 

 

(110.6

)

 

(262,416

)

 

10.7

 

 

Deferred benefits for directors

 

 

(1,940

)

 

 

(1,698

)

 

 

(14.3

)

 

(1,828

)

 

(6.1

)

 

Total Shareholders' Equity

 

 

2,475,457

 

 

 

2,547,316

 

 

 

(2.8

)

 

2,426,662

 

 

2.0

 

 

Total Liabilities and Shareholders' Equity

 

$

17,274,626

 

 

$

17,104,015

 

 

 

1.0

 

$

16,931,905

 

 

2.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WESBANCO, INC.

Consolidated Selected Financial Highlights

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended March 31,

 

 

 

 

 

2023

 

 

 

2022

 

 

 

Average balance sheet and net interest margin analysis

 

Average

 

Average

 

 

 

Average

 

Average

 

 

 

 

 

Balance

 

Rate

 

 

 

Balance

 

Rate

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Due from banks - interest bearing

 

$

279,448

 

 

4.29

 

%

 

$

1,161,218

 

 

0.16

 

%

 

Loans, net of unearned income (1)

 

 

10,750,132

 

 

5.03

 

 

 

 

9,712,085

 

 

3.89

 

 

 

Securities: (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

3,302,081

 

 

2.34

 

 

 

 

3,333,379

 

 

1.72

 

 

 

Tax-exempt (3)

 

 

800,804

 

 

3.07

 

 

 

 

729,380

 

 

3.06

 

 

 

Total securities

 

 

4,102,885

 

 

2.49

 

 

 

 

4,062,759

 

 

1.96

 

 

 

Other earning assets

 

 

45,879

 

 

2.82

 

 

 

 

15,446

 

 

3.81

 

 

 

Total earning assets (3)

 

 

15,178,344

 

 

4.32

 

%

 

 

14,951,508

 

 

3.07

 

%

 

Other assets

 

 

1,792,210

 

 

 

 

 

 

2,041,090

 

 

 

 

 

Total Assets

 

$

16,970,554

 

 

 

 

 

$

16,992,598

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing demand deposits

 

$

3,029,944

 

 

1.49

 

%

 

$

3,403,499

 

 

0.10

 

%

 

Money market accounts

 

 

1,632,738

 

 

1.06

 

 

 

 

1,806,719

 

 

0.07

 

 

 

Savings deposits

 

 

2,774,741

 

 

0.58

 

 

 

 

2,626,962

 

 

0.04

 

 

 

Certificates of deposit

 

 

862,703

 

 

0.57

 

 

 

 

1,254,603

 

 

0.41

 

 

 

Total interest bearing deposits

 

 

8,300,126

 

 

1.00

 

 

 

 

9,091,783

 

 

0.12

 

 

 

Federal Home Loan Bank borrowings

 

 

970,000

 

 

4.72

 

 

 

 

180,024

 

 

1.30

 

 

 

Repurchase agreements

 

 

131,186

 

 

1.29

 

 

 

 

156,167

 

 

0.12

 

 

 

Subordinated debt and junior subordinated debt

 

 

281,483

 

 

5.68

 

 

 

 

147,709

 

 

3.22

 

 

 

Total interest bearing liabilities (4)

 

 

9,682,795

 

 

1.52

 

%

 

 

9,575,683

 

 

0.19

 

%

 

Non-interest bearing demand deposits

 

 

4,580,164

 

 

 

 

 

 

4,576,749

 

 

 

 

 

Other liabilities

 

 

249,528

 

 

 

 

 

 

184,359

 

 

 

 

 

Shareholders' equity

 

 

2,458,067

 

 

 

 

 

 

2,655,807

 

 

 

 

 

Total Liabilities and Shareholders' Equity

 

$

16,970,554

 

 

 

 

 

$

16,992,598

 

 

 

 

 

Taxable equivalent net interest spread

 

 

 

 

2.80

 

%

 

 

 

 

2.88

 

%

 

Taxable equivalent net interest margin

 

 

 

 

3.36

 

%

 

 

 

 

2.95

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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 $0.4 million and $4.1 million for the three months ended March 31, 2023 and 2022, respectively. Additionally, loan accretion included in interest income on loans acquired from prior acquisitions was $1.3 million and $2.5 million for the three months ended March 31, 2023 and 2022, 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 $0.4 million for the three months ended March 31, 2023 and 2022, respectively.

 

 

WESBANCO, INC.

 

Consolidated Selected Financial Highlights

 

(unaudited, dollars in thousands, except shares and per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

 

 

 

Mar. 31,

 

 

Dec. 31,

 

 

Sept. 30,

 

 

June 30,

 

 

Mar. 31,

 

 

Statement of Income

 

2023

 

 

2022

 

 

2022

 

 

2022

 

 

2022

 

 

Interest and dividend income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

133,406

 

 

$

123,307

 

 

$

109,562

 

 

$

96,412

 

 

$

93,121

 

 

Interest and dividends on securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

19,086

 

 

 

18,655

 

 

 

17,531

 

 

 

15,825

 

 

 

14,112

 

 

Tax-exempt

 

 

4,790

 

 

 

4,853

 

 

 

4,916

 

 

 

4,706

 

 

 

4,344

 

 

Total interest and dividends on securities

 

 

23,876

 

 

 

23,508

 

 

 

22,447

 

 

 

20,531

 

 

 

18,456

 

 

Other interest income

 

 

3,273

 

 

 

2,103

 

 

 

2,108

 

 

 

1,504

 

 

 

597

 

 

Total interest and dividend income

 

 

160,555

 

 

 

148,918

 

 

 

134,117

 

 

 

118,447

 

 

 

112,174

 

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing demand deposits

 

 

11,106

 

 

 

7,264

 

 

 

2,953

 

 

 

1,153

 

 

 

811

 

 

Money market deposits

 

 

4,252

 

 

 

1,890

 

 

 

968

 

 

 

383

 

 

 

321

 

 

Savings deposits

 

 

4,000

 

 

 

2,454

 

 

 

1,067

 

 

 

330

 

 

 

264

 

 

Certificates of deposit

 

 

1,203

 

 

 

742

 

 

 

958

 

 

 

1,116

 

 

 

1,273

 

 

Total interest expense on deposits

 

 

20,561

 

 

 

12,350

 

 

 

5,946

 

 

 

2,982

 

 

 

2,669

 

 

Federal Home Loan Bank borrowings

 

 

11,300

 

 

 

2,634

 

 

 

348

 

 

 

411

 

 

 

575

 

 

Other short-term borrowings

 

 

418

 

 

 

324

 

 

 

147

 

 

 

48

 

 

 

48

 

 

Subordinated debt and junior subordinated debt

 

 

3,944

 

 

 

3,736

 

 

 

3,175

 

 

 

2,778

 

 

 

1,171

 

 

Total interest expense

 

 

36,223

 

 

 

19,044

 

 

 

9,616

 

 

 

6,219

 

 

 

4,463

 

 

Net interest income

 

 

124,332

 

 

 

129,874

 

 

 

124,501

 

 

 

112,228

 

 

 

107,711

 

 

Provision for credit losses

 

 

3,577

 

 

 

3,123

 

 

 

(535

)

 

 

(812

)

 

 

(3,438

)

 

Net interest income after provision for credit losses

 

 

120,755

 

 

 

126,751

 

 

 

125,036

 

 

 

113,040

 

 

 

111,149

 

 

Non-interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trust fees

 

 

7,494

 

 

 

6,672

 

 

 

6,517

 

 

 

6,527

 

 

 

7,835

 

 

Service charges on deposits

 

 

6,170

 

 

 

6,762

 

 

 

6,942

 

 

 

6,487

 

 

 

6,090

 

 

Electronic banking fees

 

 

4,605

 

 

 

4,695

 

 

 

4,808

 

 

 

5,154

 

 

 

5,345

 

 

Net securities brokerage revenue

 

 

2,576

 

 

 

2,556

 

 

 

2,491

 

 

 

2,258

 

 

 

2,220

 

 

Bank-owned life insurance

 

 

1,959

 

 

 

2,464

 

 

 

1,999

 

 

 

2,384

 

 

 

3,881

 

 

Mortgage banking income

 

 

426

 

 

 

621

 

 

 

1,257

 

 

 

1,328

 

 

 

1,923

 

 

Net securities gains/(losses)

 

 

145

 

 

 

(600

)

 

 

656

 

 

 

(1,183

)

 

 

(650

)

 

Net gain/(loss) on other real estate owned and other assets

 

 

232

 

 

 

550

 

 

 

2,040

 

 

 

(1,302

)

 

 

(806

)

 

Other income

 

 

4,046

 

 

 

4,050

 

 

 

5,546

 

 

 

5,330

 

 

 

4,544

 

 

Total non-interest income

 

 

27,653

 

 

 

27,770

 

 

 

32,256

 

 

 

26,983

 

 

 

30,382

 

 

Non-interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and wages

 

 

41,952

 

 

 

42,606

 

 

 

44,271

 

 

 

41,213

 

 

 

38,937

 

 

Employee benefits

 

 

12,060

 

 

 

9,198

 

 

 

10,693

 

 

 

8,722

 

 

 

9,158

 

 

Net occupancy

 

 

6,643

 

 

 

6,262

 

 

 

6,489

 

 

 

6,119

 

 

 

7,234

 

 

Equipment and software

 

 

9,063

 

 

 

8,712

 

 

 

8,083

 

 

 

7,702

 

 

 

8,011

 

 

Marketing

 

 

2,325

 

 

 

1,788

 

 

 

2,377

 

 

 

2,749

 

 

 

2,421

 

 

FDIC insurance

 

 

2,884

 

 

 

2,051

 

 

 

2,391

 

 

 

1,937

 

 

 

1,522

 

 

Amortization of intangible assets

 

 

2,301

 

 

 

2,541

 

 

 

2,560

 

 

 

2,579

 

 

 

2,598

 

 

Restructuring and merger-related expense

 

 

3,153

 

 

 

11

 

 

 

66

 

 

 

52

 

 

 

1,593

 

 

Other operating expenses

 

 

15,744

 

 

 

17,286

 

 

 

15,011

 

 

 

15,946

 

 

 

16,074

 

 

Total non-interest expense

 

 

96,125

 

 

 

90,455

 

 

 

91,941

 

 

 

87,019

 

 

 

87,548

 

 

Income before provision for income taxes

 

 

52,283

 

 

 

64,066

 

 

 

65,351

 

 

 

53,004

 

 

 

53,983

 

 

Provision for income taxes

 

 

9,942

 

 

 

11,856

 

 

 

12,318

 

 

 

10,256

 

 

 

9,859

 

 

Net Income

 

 

42,341

 

 

 

52,210

 

 

 

53,033

 

 

 

42,748

 

 

 

44,124

 

 

Preferred stock dividends

 

 

2,531

 

 

 

2,531

 

 

 

2,531

 

 

 

2,531

 

 

 

2,531

 

 

Net income available to common shareholders

 

$

39,810

 

 

$

49,679

 

 

$

50,502

 

 

$

40,217

 

 

$

41,593

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable equivalent net interest income

 

$

125,605

 

 

$

131,164

 

 

$

125,808

 

 

$

113,479

 

 

$

108,866

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per common share data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - basic

 

$

0.67

 

 

$

0.84

 

 

$

0.85

 

 

$

0.67

 

 

$

0.68

 

 

Net income per common share - diluted

 

 

0.67

 

 

 

0.84

 

 

 

0.85

 

 

 

0.67

 

 

 

0.68

 

 

Net income per common share - diluted, excluding
   certain items (1)(2)

 

 

0.71

 

 

 

0.84

 

 

 

0.85

 

 

 

0.67

 

 

 

0.70

 

 

Dividends declared

 

 

0.35

 

 

 

0.35

 

 

 

0.34

 

 

 

0.34

 

 

 

0.34

 

 

Book value (period end)

 

 

39.34

 

 

 

38.55

 

 

 

37.96

 

 

 

38.92

 

 

 

39.64

 

 

Tangible book value (period end) (1)

 

 

20.27

 

 

 

19.43

 

 

 

18.84

 

 

 

19.89

 

 

 

20.87

 

 

Average common shares outstanding - basic

 

 

59,217,711

 

 

 

59,188,238

 

 

 

59,549,244

 

 

 

60,036,103

 

 

 

61,445,399

 

 

Average common shares outstanding - diluted

 

 

59,375,053

 

 

 

59,374,204

 

 

 

59,697,676

 

 

 

60,185,207

 

 

 

61,593,365

 

 

Period end common shares outstanding

 

 

59,246,569

 

 

 

59,198,963

 

 

 

59,304,505

 

 

 

59,698,788

 

 

 

60,613,414

 

 

Period end preferred shares outstanding

 

 

150,000

 

 

 

150,000

 

 

 

150,000

 

 

 

150,000

 

 

 

150,000

 

 

Full time equivalent employees

 

 

2,501

 

 

 

2,495

 

 

 

2,480

 

 

 

2,509

 

 

 

2,456

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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

(unaudited, dollars in thousands)

 

 

 

Quarter Ended

 

 

 

 

 

Mar. 31,

 

 

Dec. 31,

 

 

Sept. 30,

 

 

June 30,

 

 

Mar. 31,

 

 

 

Asset quality data

 

2023

 

 

2022

 

 

2022

 

 

2022

 

 

2022

 

 

 

Non-performing assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Troubled debt restructurings - accruing

 

$

-

 

 

$

3,230

 

 

$

4,583

 

 

$

3,579

 

 

$

3,731

 

 

 

Non-accrual loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Troubled debt restructurings

 

 

-

 

 

 

1,711

 

 

 

1,756

 

 

 

2,120

 

 

 

1,348

 

 

 

Other non-accrual loans

 

 

39,216

 

 

 

36,474

 

 

 

26,428

 

 

 

29,594

 

 

 

32,024

 

 

 

Total non-accrual loans

 

 

39,216

 

 

 

38,185

 

 

 

28,184

 

 

 

31,714

 

 

 

33,372

 

 

 

Total non-performing loans

 

 

39,216

 

 

 

41,415

 

 

 

32,767

 

 

 

35,293

 

 

 

37,103

 

 

 

Other real estate and repossessed assets

 

 

1,554

 

 

 

1,486

 

 

 

1,595

 

 

 

31

 

 

 

87

 

 

 

Total non-performing assets

 

$

40,770

 

 

$

42,901

 

 

$

34,362

 

 

$

35,324

 

 

$

37,190

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past due loans (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans past due 30-89 days

 

$

12,920

 

 

$

15,439

 

 

$

21,836

 

 

$

31,388

 

 

$

28,322

 

 

 

Loans past due 90 days or more

 

 

4,570

 

 

 

5,443

 

 

 

24,311

 

 

 

9,560

 

 

 

6,142

 

 

 

Total past due loans

 

$

17,490

 

 

$

20,882

 

 

$

46,147

 

 

$

40,948

 

 

$

34,464

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Criticized and classified loans (2):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Criticized loans

 

$

116,608

 

 

$

147,945

 

 

$

163,176

 

 

$

193,871

 

 

$

234,143

 

 

 

Classified loans

 

 

57,222

 

 

 

102,555

 

 

 

86,861

 

 

 

126,257

 

 

 

123,837

 

 

 

Total criticized and classified loans

 

$

173,830

 

 

$

250,500

 

 

$

250,037

 

 

$

320,128

 

 

$

357,980

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans past due 30-89 days / total portfolio loans (3)

 

 

0.12

 

%

 

0.14

 

%

 

0.21

 

%

 

0.31

 

%

 

0.29

 

%

 

Loans past due 90 days or more / total portfolio loans

 

 

0.04

 

 

 

0.05

 

 

 

0.24

 

 

 

0.09

 

 

 

0.06

 

 

 

Non-performing loans / total portfolio loans

 

 

0.36

 

 

 

0.39

 

 

 

0.32

 

 

 

0.35

 

 

 

0.38

 

 

 

Non-performing assets/total portfolio loans, other
   real estate and repossessed assets

 

 

0.37

 

 

 

0.40

 

 

 

0.33

 

 

 

0.35

 

 

 

0.38

 

 

 

Non-performing assets / total assets

 

 

0.24

 

 

 

0.25

 

 

 

0.21

 

 

 

0.21

 

 

 

0.22

 

 

 

Criticized and classified loans / total portfolio loans

 

 

1.60

 

 

 

2.34

 

 

 

2.43

 

 

 

3.14

 

 

 

3.68

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses - loans

 

$

118,698

 

 

$

117,790

 

 

$

114,584

 

 

$

117,403

 

 

$

117,865

 

 

 

Allowance for credit losses - loan commitments

 

 

9,127

 

 

 

8,368

 

 

 

8,938

 

 

 

7,718

 

 

 

8,050

 

 

 

Provision for credit losses

 

 

3,577

 

 

 

3,123

 

 

 

(535

)

 

 

(812

)

 

 

(3,438

)

 

 

Net loan and deposit account overdraft charge-offs and recoveries

 

 

1,919

 

 

 

493

 

 

 

1,102

 

 

 

2

 

 

 

27

 

 

 

Annualized net loan charge-offs and recoveries / average loans

 

 

0.07

 

%

 

0.02

 

%

 

0.04

 

%

 

0.00

 

%

 

0.00

 

%

 

Allowance for credit losses - loans / total portfolio loans

 

 

1.09

 

%

 

1.10

 

%

 

1.11

 

%

 

1.15

 

%

 

1.21

 

%

 

Allowance for credit losses - loans / non-performing loans

 

 

3.03

 

x

 

2.84

 

x

 

3.50

 

x

 

3.33

 

x

 

3.18

 

x

 

Allowance for credit losses - loans / non-performing loans
   and loans past due

 

 

2.09

 

x

 

1.89

 

x

 

1.45

 

x

 

1.54

 

x

 

1.65

 

x

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

 

 

 

 

Mar. 31,

 

 

Dec. 31,

 

 

Sept. 30,

 

 

June 30,

 

 

Mar. 31,

 

 

 

 

 

2023

 

 

2022

 

 

2022

 

 

2022

 

 

2022

 

 

 

Capital ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier I leverage capital

 

 

9.82

 

%

 

9.90

 

%

 

9.68

 

%

 

9.51

 

%

 

9.67

 

%

 

Tier I risk-based capital

 

 

12.22

 

 

 

12.33

 

 

 

12.51

 

 

 

12.49

 

 

 

13.25

 

 

 

Total risk-based capital

 

 

14.97

 

 

 

15.11

 

 

 

15.37

 

 

 

15.40

 

 

 

16.32

 

 

 

Common equity tier 1 capital ratio (CET 1)

 

 

11.11

 

 

 

11.20

 

 

 

11.35

 

 

 

11.31

 

 

 

12.01

 

 

 

Average shareholders' equity to average assets

 

 

14.48

 

 

 

14.45

 

 

 

14.75

 

 

 

14.79

 

 

 

15.63

 

 

 

Tangible equity to tangible assets (4)

 

 

8.33

 

 

 

8.19

 

 

 

8.16

 

 

 

8.50

 

 

 

8.83

 

 

 

Tangible common equity to tangible assets (4)

 

 

7.44

 

 

 

7.28

 

 

 

7.22

 

 

 

7.58

 

 

 

7.92

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Troubled debt restructurings no longer exist with Wesbanco's adoption of ASU 2022-02 on January 1, 2023.

 

 

 

(2) Excludes non-performing loans.

 

 

 

(3) Criticized and classified commercial loans may include loans that are also reported as non-performing or past due.

 

 

 

(4) See non-GAAP financial measures for additional information relating to the calculation of this ratio.

 

 

 

 

NON-GAAP FINANCIAL MEASURES

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

 

 

 

 

 

 

Mar. 31,

 

 

Dec. 31,

 

 

Sept. 30,

 

 

June 30,

 

 

Mar. 31,

 

 

 

 

(unaudited, dollars in thousands, except shares and per share amounts)

 

2023

 

 

2022

 

 

2022

 

 

2022

 

 

2022

 

 

 

 

Return on average assets, excluding after-tax restructuring and merger-related expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

 

$

39,810

 

 

$

49,679

 

 

$

50,502

 

 

$

40,217

 

 

$

41,593

 

 

 

 

Plus: after-tax restructuring and merger-related expenses (1)

 

 

2,491

 

 

 

9

 

 

 

52

 

 

 

41

 

 

 

1,258

 

 

 

 

Net income available to common shareholders excluding after-tax restructuring and merger-related expenses

 

 

42,301

 

 

 

49,688

 

 

 

50,554

 

 

 

40,258

 

 

 

42,851

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total assets

 

$

16,970,554

 

 

$

16,685,930

 

 

$

16,871,655

 

 

$

16,971,452

 

 

$

16,992,598

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets, excluding after-tax restructuring and merger-related expenses (annualized) (2)

 

 

1.01

%

 

 

1.18

%

 

 

1.19

%

 

 

0.95

%

 

 

1.02

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average equity, excluding after-tax restructuring and merger-related expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

 

$

39,810

 

 

$

49,679

 

 

$

50,502

 

 

$

40,217

 

 

$

41,593

 

 

 

 

Plus: after-tax restructuring and merger-related expenses (1)

 

 

2,491

 

 

 

9

 

 

 

52

 

 

 

41

 

 

 

1,258

 

 

 

 

Net income available to common shareholders excluding after-tax restructuring and merger-related expenses

 

 

42,301

 

 

 

49,688

 

 

 

50,554

 

 

 

40,258

 

 

 

42,851

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total shareholders' equity

 

 

2,458,067

 

 

 

2,410,761

 

 

 

2,488,938

 

 

 

2,509,439

 

 

 

2,655,807

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average equity, excluding after-tax restructuring and merger-related expenses (annualized) (2)

 

 

6.98

%

 

 

8.18

%

 

 

8.06

%

 

 

6.43

%

 

 

6.54

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average tangible equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

 

$

39,810

 

 

$

49,679

 

 

$

50,502

 

 

$

40,217

 

 

$

41,593

 

 

 

 

Plus: amortization of intangibles (1)

 

 

1,818

 

 

 

2,007

 

 

 

2,022

 

 

 

2,037

 

 

 

2,052

 

 

 

 

Net income available to common shareholders before amortization of intangibles

 

 

41,628

 

 

 

51,686

 

 

 

52,524

 

 

 

42,254

 

 

 

43,645

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total shareholders' equity

 

 

2,458,067

 

 

 

2,410,761

 

 

 

2,488,938

 

 

 

2,509,439

 

 

 

2,655,807

 

 

 

 

Less: average goodwill and other intangibles, net of def. tax liability

 

 

(1,131,027

)

 

 

(1,132,894

)

 

 

(1,135,007

)

 

 

(1,137,187

)

 

 

(1,139,242

)

 

 

 

Average tangible equity

 

$

1,327,040

 

 

$

1,277,867

 

 

$

1,353,931

 

 

$

1,372,252

 

 

$

1,516,565

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average tangible equity (annualized) (2)

 

 

12.72

%

 

 

16.05

%

 

 

15.39

%

 

 

12.35

%

 

 

11.67

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average tangible common equity

 

$

1,182,556

 

 

$

1,133,383

 

 

$

1,209,447

 

 

$

1,227,768

 

 

$

1,372,081

 

 

 

 

Return on average tangible common equity (annualized) (2)

 

 

14.28

%

 

 

18.09

%

 

 

17.23

%

 

 

13.80

%

 

 

12.90

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average tangible equity, excluding after-tax restructuring and merger-related expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

 

$

39,810

 

 

$

49,679

 

 

$

50,502

 

 

$

40,217

 

 

$

41,593

 

 

 

 

Plus: after-tax restructuring and merger-related expenses (1)

 

 

2,491

 

 

 

9

 

 

 

52

 

 

 

41

 

 

 

1,258

 

 

 

 

Plus: amortization of intangibles (1)

 

 

1,818

 

 

 

2,007

 

 

 

2,022

 

 

 

2,037

 

 

 

2,052

 

 

 

 

Net income available to common shareholders before amortization of intangibles and
   excluding after-tax restructuring and merger-related expenses

 

 

44,119

 

 

 

51,695

 

 

 

52,576

 

 

 

42,295

 

 

 

44,903

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total shareholders' equity

 

 

2,458,067

 

 

 

2,410,761

 

 

 

2,488,938

 

 

 

2,509,439

 

 

 

2,655,807

 

 

 

 

Less: average goodwill and other intangibles, net of def. tax liability

 

 

(1,131,027

)

 

 

(1,132,894

)

 

 

(1,135,007

)

 

 

(1,137,187

)

 

 

(1,139,242

)

 

 

 

Average tangible equity

 

$

1,327,040

 

 

$

1,277,867

 

 

$

1,353,931

 

 

$

1,372,252

 

 

$

1,516,565

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average tangible equity, excluding after-tax restructuring and merger-related expenses (annualized) (2)

 

 

13.48

%

 

 

16.05

%

 

 

15.41

%

 

 

12.36

%

 

 

12.01

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average tangible common equity

 

$

1,182,556

 

 

$

1,133,383

 

 

$

1,209,447

 

 

$

1,227,768

 

 

$

1,372,081

 

 

 

 

Return on average tangible common equity, excluding after-tax restructuring and merger-related expenses (annualized) (2)

 

 

15.13

%

 

 

18.10

%

 

 

17.25

%

 

 

13.82

%

 

 

13.27

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

Mar. 31,

 

 

Dec. 31,

 

 

Sept. 30

 

 

June 30,

 

 

Mar. 31,

 

 

(unaudited, dollars in thousands, except shares and per share amounts)

 

2023

 

 

2022

 

 

2022

 

 

2022

 

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense

 

$

96,125

 

 

$

90,455

 

 

$

91,941

 

 

$

87,019

 

 

$

87,548

 

 

Less: restructuring and merger-related expense

 

 

(3,153

)

 

 

(11

)

 

 

(66

)

 

 

(52

)

 

 

(1,593

)

 

Non-interest expense excluding restructuring and merger-related expense

 

 

92,972

 

 

 

90,444

 

 

 

91,875

 

 

 

86,967

 

 

 

85,955

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income on a fully taxable equivalent basis

 

 

125,605

 

 

 

131,164

 

 

 

125,808

 

 

 

113,479

 

 

 

108,866

 

 

Non-interest income

 

 

27,653

 

 

 

27,770

 

 

 

32,256

 

 

 

26,983

 

 

 

30,382

 

 

Net interest income on a fully taxable equivalent basis plus non-interest income

 

$

153,258

 

 

$

158,934

 

 

$

158,064

 

 

$

140,462

 

 

$

139,248

 

 

Efficiency Ratio

 

 

60.66

%

 

 

56.91

%

 

 

58.13

%

 

 

61.91

%

 

 

61.73

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders, excluding after-tax restructuring and merger-related expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

 

$

39,810

 

 

$

49,679

 

 

$

50,502

 

 

$

40,217

 

 

$

41,593

 

 

Add: After-tax restructuring and merger-related expenses (1)

 

 

2,491

 

 

 

9

 

 

 

52

 

 

 

41

 

 

 

1,258

 

 

Net income available to common shareholders, excluding after-tax restructuring and merger-related expenses

 

$

42,301

 

 

$

49,688

 

 

$

50,554

 

 

$

40,258

 

 

$

42,851

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - diluted, excluding after-tax restructuring and merger-related expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - diluted

 

$

0.67

 

 

$

0.84

 

 

$

0.85

 

 

$

0.67

 

 

$

0.68

 

 

Add: After-tax restructuring and merger-related expenses per common share - diluted (1)

 

 

0.04

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

0.02

 

 

Net income per common share - diluted, excluding after-tax restructuring and merger-related expenses

 

$

0.71

 

 

$

0.84

 

 

$

0.85

 

 

$

0.67

 

 

$

0.70

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period End

 

 

 

 

Mar. 31,

 

 

Dec. 31,

 

 

Sept. 30,

 

 

June 30,

 

 

Mar. 31,

 

 

 

 

2023

 

 

2022

 

 

2022

 

 

2022

 

 

2022

 

 

Tangible book value per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total shareholders' equity

 

$

2,475,457

 

 

$

2,426,662

 

 

$

2,395,652

 

 

$

2,467,951

 

 

$

2,547,316

 

 

Less: goodwill and other intangible assets, net of def. tax liability

 

 

(1,130,172

)

 

 

(1,131,990

)

 

 

(1,133,998

)

 

 

(1,136,020

)

 

 

(1,138,057

)

 

Less: preferred shareholders' equity

 

 

(144,484

)

 

 

(144,484

)

 

 

(144,484

)

 

 

(144,484

)

 

 

(144,484

)

 

Tangible common equity

 

 

1,200,801

 

 

 

1,150,188

 

 

 

1,117,170

 

 

 

1,187,447

 

 

 

1,264,775

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

 

59,246,569

 

 

 

59,198,963

 

 

 

59,304,505

 

 

 

59,698,788

 

 

 

60,613,414

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible book value per share

 

$

20.27

 

 

$

19.43

 

 

$

18.84

 

 

$

19.89

 

 

$

20.87

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity to tangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total shareholders' equity

 

$

2,475,457

 

 

$

2,426,662

 

 

$

2,395,652

 

 

$

2,467,951

 

 

$

2,547,316

 

 

Less: goodwill and other intangible assets, net of def. tax liability

 

 

(1,130,172

)

 

 

(1,131,990

)

 

 

(1,133,998

)

 

 

(1,136,020

)

 

 

(1,138,057

)

 

Tangible equity

 

 

1,345,285

 

 

 

1,294,672

 

 

 

1,261,654

 

 

 

1,331,931

 

 

 

1,409,259

 

 

Less: preferred shareholders' equity

 

 

(144,484

)

 

 

(144,484

)

 

 

(144,484

)

 

 

(144,484

)

 

 

(144,484

)

 

Tangible common equity

 

 

1,200,801

 

 

 

1,150,188

 

 

 

1,117,170

 

 

 

1,187,447

 

 

 

1,264,775

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

17,274,626

 

 

 

16,931,905

 

 

 

16,604,747

 

 

 

16,799,624

 

 

 

17,104,015

 

 

Less: goodwill and other intangible assets, net of def. tax liability

 

 

(1,130,172

)

 

 

(1,131,990

)

 

 

(1,133,998

)

 

 

(1,136,020

)

 

 

(1,138,057

)

 

Tangible assets

 

$

16,144,454

 

 

$

15,799,915

 

 

$

15,470,749

 

 

$

15,663,604

 

 

$

15,965,958

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible equity to tangible assets

 

 

8.33

%

 

 

8.19

%

 

 

8.16

%

 

 

8.50

%

 

 

8.83

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity to tangible assets

 

 

7.44

%

 

 

7.28

%

 

 

7.22

%

 

 

7.58

%

 

 

7.92

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Tax effected at 21% for all periods presented.

 

 

(2) The ratios are annualized by utilizing actual number of days in the quarter versus the year.

 

 

 

 

ADDITIONAL NON-GAAP FINANCIAL MEASURES

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

 

 

 

 

 

 

Mar. 31,

 

 

Dec. 31,

 

 

Sept. 30,

 

 

June 30,

 

 

Mar. 31,

 

 

 

 

(unaudited, dollars in thousands, except shares and per share amounts)

 

2023

 

 

2022

 

 

2022

 

 

2022

 

 

2022

 

 

 

 

Pre-tax, pre-provision income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before provision for income taxes

 

$

52,283

 

 

$

64,066

 

 

$

65,351

 

 

$

53,004

 

 

$

53,983

 

 

 

 

Add: provision for credit losses

 

 

3,577

 

 

 

3,123

 

 

 

(535

)

 

 

(812

)

 

 

(3,438

)

 

 

 

Pre-tax, pre-provision income

 

$

55,860

 

 

$

67,189

 

 

$

64,816

 

 

$

52,192

 

 

$

50,545

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-tax, pre-provision income, excluding restructuring and merger-related expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before provision for income taxes

 

$

52,283

 

 

$

64,066

 

 

$

65,351

 

 

$

53,004

 

 

$

53,983

 

 

 

 

Add: provision for credit losses

 

 

3,577

 

 

 

3,123

 

 

 

(535

)

 

 

(812

)

 

 

(3,438

)

 

 

 

Add: restructuring and merger-related expenses

 

 

3,153

 

 

 

11

 

 

 

66

 

 

 

52

 

 

 

1,593

 

 

 

 

Pre-tax, pre-provision income, excluding restructuring and merger-related expenses

 

$

59,013

 

 

$

67,200

 

 

$

64,882

 

 

$

52,244

 

 

$

52,138

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

'Return on average assets, excluding certain items (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before provision for income taxes

 

$

52,283

 

 

$

64,066

 

 

$

65,351

 

 

$

53,004

 

 

$

53,983

 

 

 

 

Add: provision for credit losses

 

 

3,577

 

 

 

3,123

 

 

 

(535

)

 

 

(812

)

 

 

(3,438

)

 

 

 

Add: restructuring and merger-related expenses

 

 

3,153

 

 

 

11

 

 

 

66

 

 

 

52

 

 

 

1,593

 

 

 

 

Pre-tax, pre-provision income, excluding restructuring and merger-related expenses

 

 

59,013

 

 

 

67,200

 

 

 

64,882

 

 

 

52,244

 

 

 

52,138

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total assets

 

$

16,970,554

 

 

$

16,685,930

 

 

$

16,871,655

 

 

$

16,971,452

 

 

$

16,992,598

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets, excluding certain items (annualized) (1) (2)

 

 

1.41

%

 

 

1.60

%

 

 

1.53

%

 

 

1.23

%

 

 

1.24

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average equity, excluding certain items (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before provision for income taxes

 

$

52,283

 

 

$

64,066

 

 

$

65,351

 

 

$

53,004

 

 

$

53,983

 

 

 

 

Add: provision for credit losses

 

 

3,577

 

 

 

3,123

 

 

 

(535

)

 

 

(812

)

 

 

(3,438

)

 

 

 

Add: restructuring and merger-related expenses

 

 

3,153

 

 

 

11

 

 

 

66

 

 

 

52

 

 

 

1,593

 

 

 

 

Pre-tax, pre-provision income, excluding restructuring and merger-related expenses

 

 

59,013

 

 

 

67,200

 

 

 

64,882

 

 

 

52,244

 

 

 

52,138

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total shareholders' equity

 

$

2,458,067

 

 

$

2,410,761

 

 

$

2,488,938

 

 

$

2,509,439

 

 

$

2,655,807

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average equity, excluding certain items (annualized) (1) (2)

 

 

9.74

%

 

 

11.06

%

 

 

10.34

%

 

 

8.35

%

 

 

7.96

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average tangible equity, excluding certain items (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before provision for income taxes

 

$

52,283

 

 

$

64,066

 

 

$

65,351

 

 

$

53,004

 

 

$

53,983

 

 

 

 

Add: provision for credit losses

 

 

3,577

 

 

 

3,123

 

 

 

(535

)

 

 

(812

)

 

 

(3,438

)

 

 

 

Add: amortization of intangibles

 

 

2,301

 

 

 

2,541

 

 

 

2,560

 

 

 

2,579

 

 

 

2,598

 

 

 

 

Add: restructuring and merger-related expenses

 

 

3,153

 

 

 

11

 

 

 

66

 

 

 

52

 

 

 

1,593

 

 

 

 

Income before provision, restructuring and merger-related expenses and amortization of intangibles

 

 

61,314

 

 

 

69,741

 

 

 

67,442

 

 

 

54,823

 

 

 

54,736

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total shareholders' equity

 

 

2,458,067

 

 

 

2,410,761

 

 

 

2,488,938

 

 

 

2,509,439

 

 

 

2,655,807

 

 

 

 

Less: average goodwill and other intangibles, net of def. tax liability

 

 

(1,131,027

)

 

 

(1,132,894

)

 

 

(1,135,007

)

 

 

(1,137,187

)

 

 

(1,139,242

)

 

 

 

Average tangible equity

 

$

1,327,040

 

 

$

1,277,867

 

 

$

1,353,931

 

 

$

1,372,252

 

 

$

1,516,565

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average tangible equity, excluding certain items (annualized) (1) (2)

 

 

18.74

%

 

 

21.65

%

 

 

19.76

%

 

 

16.02

%

 

 

14.64

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average tangible common equity

 

$

1,182,556

 

 

$

1,133,383

 

 

$

1,209,447

 

 

$

1,227,768

 

 

$

1,372,081

 

 

 

 

Return on average tangible common equity, excluding provision items (annualized) (1) (2)

 

 

21.03

%

 

 

24.41

%

 

 

22.12

%

 

 

17.91

%

 

 

16.18

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.