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

 

img235408680_0.jpg 

 

 

WesBanco Announces Fourth Quarter 2023 Financial Results

Continued deposit and loan growth while maintaining a stable net interest margin

 

 

Wheeling, WVa. (January 23, 2024) – 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 twelve months ended December 31, 2023. Net income available to common shareholders for the fourth quarter of 2023 was $32.4 million, with diluted earnings per share of $0.55, compared to $49.7 million and $0.84 per diluted share, respectively, for the fourth quarter of 2022. For the twelve months ended December 31, 2023, net income was $148.9 million, or $2.51 per diluted share, compared to $182.0 million, or $3.02 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 twelve months ended December 31, 2023 were $32.4 million, or $0.55 per diluted share, and $151.9 million, or $2.56 per diluted share, respectively (non-GAAP measures).

 

 

 

For the Three Months Ended December 31,

 

 

For the Twelve Months Ended December 31,

 

 

 

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)

$

32,437

 

 

$

0.55

 

 

$

49,688

 

 

$

0.84

 

 

$

151,933

 

 

$

2.56

 

 

$

183,349

 

 

$

3.04

 

Less: After tax restructuring and merger-related expenses

 

-

 

 

 

-

 

 

 

(9

)

 

 

-

 

 

 

(3,026

)

 

 

(0.05

)

 

 

(1,361

)

 

 

(0.02

)

Net income available to common shareholders (GAAP)

$

32,437

 

 

$

0.55

 

 

$

49,679

 

 

$

0.84

 

 

$

148,907

 

 

$

2.51

 

 

$

181,988

 

 

$

3.02

 

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

 

 

 

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

•
Deposits of $13.2 billion increased both year-over-year and sequentially, reflecting deposit gathering and retention efforts across retail and business customers
o
Average loans to average deposits were 87%, providing capacity to fund loan growth
•
Total loan growth was 8.7% year-over-year and 2.9% quarter-over-quarter, reflecting the strength of our markets and lending teams
o
Loan production offices continued to contribute meaningfully to the commercial loan pipeline
•
Non-interest income increased 8.0% year-over-year, supported by new commercial loan swap and wealth management fees
o
New commercial swap fees totaled $9.0 million during 2023
o
Trust assets increased to $5.4 billion, driven by both market value adjustments and organic growth
•
Net interest margin of 3.02% was stable to the third quarter of 2023
•
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
•
WesBanco continued to earn national accolades, being recognized as one of America’s Best Regional Banks by Newsweek

 

“Record interest rate escalation by the Federal Reserve had a significant impact on all banks, including WesBanco. Despite that headwind, WesBanco performed well during 2023 through our continued focus on customer service and sustainable growth strategies. We achieved sustained loan, deposit, and fee income growth, while maintaining strong capital levels and credit quality,” said Jeff Jackson, President and Chief Executive Officer, WesBanco. “Our focus on further diversifying our revenue streams with new fee-based services is driving positive non-interest income trends. As we begin 2024, we remain well-capitalized with solid liquidity and a strong balance sheet to fund loan growth, positioning us well to continue generating value for our stakeholders.”

 

 

 

Balance Sheet

As of December 31, 2023, total portfolio loans were $11.6 billion, which increased 8.7% year-over-year driven by strong performance from our commercial and residential lending teams. Total commercial loans of $8.2 billion, which increased 7.8% year-over-year, reflects the benefit of our commercial banker hiring and loan production office strategies and lower commercial real estate payoffs of $276 million for the year, compared to an anticipated level in the $500 million range within a more normal operating environment. Our new loan production offices accounted for more than 20% of commercial loan growth during the year. The commercial pipeline totaled $0.7 billion at December 31, 2023, approximately 28% of which is from the four new loan production offices.

 

Total deposits, as of December 31, 2023, were $13.2 billion, up 0.6% from September 30, 2023 and up 0.3% from December 31, 2022, reflecting the benefit of deposit gathering and retention efforts by our retail and commercial teams. Reflecting the impact of the significant increase in the federal funds rate, there continued to be some mix shift in the composition of total deposits; however, total demand deposits continue to represent 56% of total deposits, with the non-interest bearing component representing 30%, which remains consistent with the percentage range since early 2020.

 

Credit Quality

As of December 31, 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 increased 9 basis points from the prior year, but remain below the quarterly average for the last three years. Criticized and classified loans as a percent of the loan portfolio decreased 12 basis points year-over-year to 2.22%, while non-performing assets as a percentage of total assets declined 9 basis points to 0.16%. The current recorded provision was primarily driven by changes in criticized and classified loan balances, prepayment assumptions, and loan growth. The allowance for credit losses to total portfolio loans at December 31, 2023 remained at 1.12% of total loans, as compared to the third quarter, or $130.7 million. Excluded from the allowance for credit losses and related coverage ratio are fair market value adjustments on previously acquired loans representing 0.12% of total loans.

 

Net Interest Margin and Income

The net interest margin of 3.02% for the fourth quarter of 2023 decreased just 1 basis point sequentially but 47 basis points year-over-year 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 234 basis points for the fourth quarter of 2023, and, when including non-interest deposits, total deposit funding costs were 161 basis points. Accretion from acquisitions benefited the fourth quarter net interest margin by 3 basis points, as compared to 5 basis points in the prior year period.

 

Fourth quarter net interest income of $117.8 million decreased $12.1 million, or 9.3%, year-over-year, reflecting the impact of rising rates on funding costs more than offsetting higher loan and securities yields and loan growth. For the twelve months ended December 31, 2023, net interest income of $481.3 million increased $7.0 million, or 1.5%, primarily due to loan growth and the benefit of rising rates on earning assets outpacing funding costs.

 

Non-Interest Income

For the fourth quarter of 2023, non-interest income of $30.1 million increased $2.3 million, or 8.3%, from the fourth quarter of 2022. This increase was primarily due to net securities gains of $0.9 million, as compared to a loss of $0.6 million in the prior year period, from market fluctuations of equity securities in the deferred compensation plan and higher death benefits within bank-owned life insurance. The net swap fee and valuation loss of $0.3 million reflects $2.2 million of new swap fees offset by negative fair value adjustments of $2.5 million, as compared to $1.7 million and negative $0.7 million, respectively, in the prior year period.

 

For the twelve months ended December 31, 2023, non-interest income of $120.4 million increased $3.1 million, or 2.6%, year-over-year due primarily to the items discussed above, partially offset by lower mortgage banking income. Mortgage banking income decreased $2.5 million from the prior year to $2.7 million due to reduced fair value adjustments on mortgage derivatives. Net gains on other assets of $1.5 million increased $1.0 million year-over-year primarily due to a $1.1 million recovery of an asset previously written-off.

 

Non-Interest Expense

Non-interest expense for the three months ended December 31, 2023 increased $9.0 million year-over-year to $99.5 million, reflecting increased salaries and wages, benefits, equipment and software expense, and FDIC insurance. As anticipated, salaries and wages declined sequentially which reflects efficiency improvements in the mortgage staffing model. Salaries and wages increased $2.6 million, or 6.0%, 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. Employee benefits increased $2.2 million year-over-year due to higher deferred compensation expense, the offsetting gain is located within net securities gains, and higher health insurance contributions. FDIC insurance expense increased $1.3 million

 

year-over-year due to an increase in the minimum rate for all banks. Marketing expense increased $1.2 million in support of deposit and loan generation campaigns. Equipment and software expense increased $0.9 million due to the planned upgrade of our ATM fleet with the latest technology and general inflationary cost increases for existing service agreements.

 

Excluding restructuring and merger-related expenses, non-interest expense during the twelve months of 2023 of $386.2 million increased $30.9 million compared to the prior year period, due primarily to the same factors 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 December 31, 2023, Tier I leverage was 9.87%, Tier I risk-based capital ratio was 12.05%, common equity Tier 1 capital ratio (“CET 1”) was 10.99%, and total risk-based capital was 14.91%. In addition, the tangible common equity to tangible assets ratio improved to 7.62%.

 

Conference Call and Webcast

WesBanco will host a conference call to discuss the Company's financial results for the fourth quarter of 2023 at 10:00 a.m. ET on Wednesday, January 24, 2024. 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 4078172. The replay will begin at approximately 12:00 p.m. ET on January 24, 2024 and end at 12 a.m. ET on February 7, 2024. 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, June 30, 2023 and September 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 $5.4 billion of assets under management (as of December 31, 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.

 

 

SOURCE: WesBanco, Inc.

 

WesBanco Company Contact:

John H. Iannone

Senior Vice President, Investor 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

 

 

For the Twelve Months Ended

 

 

STATEMENT OF INCOME

 

December 31,

 

 

December 31,

 

 

 

 

2023

 

 

2022

 

 

% Change

 

 

2023

 

 

2022

 

 

% Change

 

 

Interest and dividend income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

162,498

 

 

$

123,307

 

 

 

31.8

 

 

$

596,852

 

 

$

422,401

 

 

 

41.3

 

 

Interest and dividends on securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

17,798

 

 

 

18,655

 

 

 

(4.6

)

 

 

73,449

 

 

 

66,123

 

 

 

11.1

 

 

Tax-exempt

 

 

4,639

 

 

 

4,853

 

 

 

(4.4

)

 

 

18,830

 

 

 

18,818

 

 

 

0.1

 

 

Total interest and dividends on securities

 

 

22,437

 

 

 

23,508

 

 

 

(4.6

)

 

 

92,279

 

 

 

84,941

 

 

 

8.6

 

 

Other interest income

 

 

6,383

 

 

 

2,103

 

 

 

203.5

 

 

 

22,385

 

 

 

6,314

 

 

 

254.5

 

 

          Total interest and dividend income

 

 

191,318

 

 

 

148,918

 

 

 

28.5

 

 

 

711,516

 

 

 

513,656

 

 

 

38.5

 

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing demand deposits

 

 

23,686

 

 

 

7,264

 

 

 

226.1

 

 

 

72,866

 

 

 

12,181

 

 

 

498.2

 

 

Money market deposits

 

 

14,302

 

 

 

1,890

 

 

 

656.7

 

 

 

36,616

 

 

 

3,562

 

 

 

928.0

 

 

Savings deposits

 

 

7,310

 

 

 

2,454

 

 

 

197.9

 

 

 

23,869

 

 

 

4,115

 

 

 

480.0

 

 

Certificates of deposit

 

 

8,380

 

 

 

742

 

 

NM

 

 

 

18,472

 

 

 

4,089

 

 

 

351.7

 

 

Total interest expense on deposits

 

 

53,678

 

 

 

12,350

 

 

 

334.6

 

 

 

151,823

 

 

 

23,947

 

 

 

534.0

 

 

Federal Home Loan Bank borrowings

 

 

14,841

 

 

 

2,634

 

 

 

463.4

 

 

 

59,318

 

 

 

3,968

 

 

NM

 

 

Other short-term borrowings

 

 

891

 

 

 

324

 

 

 

175.0

 

 

 

2,545

 

 

 

568

 

 

 

348.1

 

 

Subordinated debt and junior subordinated debt

 

 

4,150

 

 

 

3,736

 

 

 

11.1

 

 

 

16,492

 

 

 

10,860

 

 

 

51.9

 

 

Total interest expense

 

 

73,560

 

 

 

19,044

 

 

 

286.3

 

 

 

230,178

 

 

 

39,343

 

 

 

485.1

 

 

Net interest income

 

 

117,758

 

 

 

129,874

 

 

 

(9.3

)

 

 

481,338

 

 

 

474,313

 

 

 

1.5

 

 

Provision for credit losses

 

 

4,803

 

 

 

3,123

 

 

 

53.8

 

 

 

17,734

 

 

 

(1,663

)

 

NM

 

 

Net interest income after provision for credit losses

 

 

112,955

 

 

 

126,751

 

 

 

(10.9

)

 

 

463,604

 

 

 

475,976

 

 

 

(2.6

)

 

Non-interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trust fees

 

 

7,019

 

 

 

6,672

 

 

 

5.2

 

 

 

28,135

 

 

 

27,551

 

 

 

2.1

 

 

Service charges on deposits

 

 

6,989

 

 

 

6,762

 

 

 

3.4

 

 

 

26,116

 

 

 

26,281

 

 

 

(0.6

)

 

Electronic banking fees

 

 

4,890

 

 

 

4,695

 

 

 

4.2

 

 

 

19,454

 

 

 

20,002

 

 

 

(2.7

)

 

Net swap fee and valuation (loss)/ income

 

 

(345

)

 

 

1,015

 

 

 

(134.0

)

 

 

6,912

 

 

 

7,067

 

 

 

(2.2

)

 

Net securities brokerage revenue

 

 

2,563

 

 

 

2,556

 

 

 

0.3

 

 

 

10,055

 

 

 

9,525

 

 

 

5.6

 

 

Bank-owned life insurance

 

 

3,455

 

 

 

2,464

 

 

 

40.2

 

 

 

11,002

 

 

 

10,728

 

 

 

2.6

 

 

Mortgage banking income

 

 

650

 

 

 

621

 

 

 

4.7

 

 

 

2,652

 

 

 

5,129

 

 

 

(48.3

)

 

Net securities gains/(losses)

 

 

887

 

 

 

(600

)

 

 

247.8

 

 

 

900

 

 

 

(1,777

)

 

 

150.6

 

 

Net gains on other real estate owned and other assets

 

 

445

 

 

 

550

 

 

 

(19.1

)

 

 

1,520

 

 

 

482

 

 

 

215.4

 

 

Other income

 

 

3,521

 

 

 

3,035

 

 

 

16.0

 

 

 

13,701

 

 

 

12,403

 

 

 

10.5

 

 

Total non-interest income

 

 

30,074

 

 

 

27,770

 

 

 

8.3

 

 

 

120,447

 

 

 

117,391

 

 

 

2.6

 

 

Non-interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and wages

 

 

45,164

 

 

 

42,606

 

 

 

6.0

 

 

 

176,938

 

 

 

167,028

 

 

 

5.9

 

 

Employee benefits

 

 

11,409

 

 

 

9,198

 

 

 

24.0

 

 

 

46,901

 

 

 

37,771

 

 

 

24.2

 

 

Net occupancy

 

 

6,417

 

 

 

6,262

 

 

 

2.5

 

 

 

25,338

 

 

 

26,105

 

 

 

(2.9

)

 

Equipment and software

 

 

9,648

 

 

 

8,712

 

 

 

10.7

 

 

 

36,666

 

 

 

32,508

 

 

 

12.8

 

 

Marketing

 

 

2,975

 

 

 

1,788

 

 

 

66.4

 

 

 

11,178

 

 

 

9,335

 

 

 

19.7

 

 

FDIC insurance

 

 

3,369

 

 

 

2,051

 

 

 

64.3

 

 

 

12,249

 

 

 

7,901

 

 

 

55.0

 

 

Amortization of intangible assets

 

 

2,243

 

 

 

2,541

 

 

 

(11.7

)

 

 

9,088

 

 

 

10,278

 

 

 

(11.6

)

 

Restructuring and merger-related expense

 

 

-

 

 

 

11

 

 

 

(100.0

)

 

 

3,830

 

 

 

1,723

 

 

 

122.3

 

 

Other operating expenses

 

 

18,278

 

 

 

17,286

 

 

 

5.7

 

 

 

67,814

 

 

 

64,317

 

 

 

5.4

 

 

Total non-interest expense

 

 

99,503

 

 

 

90,455

 

 

 

10.0

 

 

 

390,002

 

 

 

356,966

 

 

 

9.3

 

 

Income before provision for income taxes

 

 

43,526

 

 

 

64,066

 

 

 

(32.1

)

 

 

194,049

 

 

 

236,401

 

 

 

(17.9

)

 

Provision for income taxes

 

 

8,558

 

 

 

11,856

 

 

 

(27.8

)

 

 

35,017

 

 

 

44,288

 

 

 

(20.9

)

 

Net Income

 

 

34,968

 

 

 

52,210

 

 

 

(33.0

)

 

 

159,032

 

 

 

192,113

 

 

 

(17.2

)

 

Preferred stock dividends

 

 

2,531

 

 

 

2,531

 

 

 

-

 

 

 

10,125

 

 

 

10,125

 

 

 

-

 

 

Net income available to common shareholders

 

$

32,437

 

 

$

49,679

 

 

 

(34.7

)

 

$

148,907

 

 

$

181,988

 

 

 

(18.2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable equivalent net interest income

 

$

118,991

 

 

$

131,164

 

 

 

(9.3

)

 

$

486,343

 

 

$

479,315

 

 

 

1.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per common share data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - basic

 

$

0.55

 

 

$

0.84

 

 

 

(34.5

)

 

$

2.51

 

 

$

3.03

 

 

 

(17.2

)

 

Net income per common share - diluted

 

 

0.55

 

 

 

0.84

 

 

 

(34.5

)

 

 

2.51

 

 

 

3.02

 

 

 

(16.9

)

 

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

 

 

0.55

 

 

 

0.84

 

 

 

(34.5

)

 

 

2.56

 

 

 

3.04

 

 

 

(15.8

)

 

Dividends declared

 

 

0.36

 

 

 

0.35

 

 

 

2.9

 

 

 

1.41

 

 

 

1.37

 

 

 

2.9

 

 

Book value (period end)

 

 

40.23

 

 

 

38.55

 

 

 

4.4

 

 

 

40.23

 

 

 

38.55

 

 

 

4.4

 

 

Tangible book value (period end) (1)

 

 

21.28

 

 

 

19.43

 

 

 

9.5

 

 

 

21.28

 

 

 

19.43

 

 

 

9.5

 

 

Average common shares outstanding - basic

 

 

59,370,171

 

 

 

59,188,238

 

 

 

0.3

 

 

 

59,303,210

 

 

 

60,047,177

 

 

 

(1.2

)

 

Average common shares outstanding - diluted

 

 

59,479,031

 

 

 

59,374,204

 

 

 

0.2

 

 

 

59,427,989

 

 

 

60,215,374

 

 

 

(1.3

)

 

Period end common shares outstanding

 

 

59,376,435

 

 

 

59,198,963

 

 

 

0.3

 

 

 

59,376,435

 

 

 

59,198,963

 

 

 

0.3

 

 

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

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Selected ratios

 

 

 

 

 

 

 

 

 

 

 

For the Twelve Months Ended

 

 

 

 

December 31,

 

 

 

 

2023

 

 

2022

 

 

% Change

 

 

 

Return on average assets

 

0.86

 

%

 

1.08

 

%

 

(20.37

)

%

 

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

 

0.88

 

 

 

1.09

 

 

 

(19.27

)

 

 

Return on average equity

 

6.02

 

 

 

7.23

 

 

 

(16.74

)

 

 

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

 

6.14

 

 

 

7.29

 

 

 

(15.78

)

 

 

Return on average tangible equity (1)

 

11.59

 

 

 

13.78

 

 

 

(15.89

)

 

 

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

 

11.82

 

 

 

13.88

 

 

 

(14.84

)

 

 

Return on average tangible common equity (1)

 

12.99

 

 

 

15.39

 

 

 

(15.59

)

 

 

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

 

13.24

 

 

 

15.50

 

 

 

(14.58

)

 

 

Yield on earning assets (2)

 

4.63

 

 

 

3.47

 

 

 

33.43

 

 

 

Cost of interest bearing liabilities

 

2.25

 

 

 

0.42

 

 

 

435.71

 

 

 

Net interest spread (2)

 

2.38

 

 

 

3.05

 

 

 

(21.97

)

 

 

Net interest margin (2)

 

3.14

 

 

 

3.20

 

 

 

(1.88

)

 

 

Efficiency (1) (2)

 

63.64

 

 

 

59.53

 

 

 

6.90

 

 

 

Average loans to average deposits

 

85.71

 

 

 

74.21

 

 

 

15.50

 

 

 

Annualized net loan charge-offs/average loans

 

0.04

 

 

 

0.02

 

 

 

100.00

 

 

 

Effective income tax rate

 

18.05

 

 

 

18.73

 

 

 

(3.63

)

 

 

 

For the Three Months Ended

 

 

 

Dec. 31,

 

 

Sept. 30,

 

 

June 30,

 

 

Mar. 31,

 

 

Dec. 31,

 

 

 

2023

 

 

2023

 

 

2023

 

 

2023

 

 

2022

 

 

Return on average assets

 

0.74

 

%

 

0.78

 

%

 

0.98

 

%

 

0.95

 

%

 

1.18

 

%

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

 

0.74

 

 

 

0.80

 

 

 

0.98

 

 

 

1.01

 

 

 

1.18

 

 

Return on average equity

 

5.21

 

 

 

5.49

 

 

 

6.81

 

 

 

6.57

 

 

 

8.18

 

 

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

 

5.21

 

 

 

5.57

 

 

 

6.82

 

 

 

6.98

 

 

 

8.18

 

 

Return on average tangible equity (1)

 

10.11

 

 

 

10.60

 

 

 

12.98

 

 

 

12.72

 

 

 

16.05

 

 

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

 

10.11

 

 

 

10.75

 

 

 

12.99

 

 

 

13.48

 

 

 

16.05

 

 

Return on average tangible common equity (1)

 

11.32

 

 

 

11.87

 

 

 

14.52

 

 

 

14.28

 

 

 

18.09

 

 

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

 

11.32

 

 

 

12.03

 

 

 

14.53

 

 

 

15.13

 

 

 

18.10

 

 

Yield on earning assets (2)

 

4.88

 

 

 

4.72

 

 

 

4.59

 

 

 

4.32

 

 

 

4.00

 

 

Cost of interest bearing liabilities

 

2.76

 

 

 

2.52

 

 

 

2.15

 

 

 

1.52

 

 

 

0.82

 

 

Net interest spread (2)

 

2.12

 

 

 

2.20

 

 

 

2.44

 

 

 

2.80

 

 

 

3.18

 

 

Net interest margin (2)

 

3.02

 

 

 

3.03

 

 

 

3.18

 

 

 

3.36

 

 

 

3.49

 

 

Efficiency (1) (2)

 

66.75

 

 

 

64.95

 

 

 

62.33

 

 

 

60.66

 

 

 

56.91

 

 

Average loans to average deposits

 

87.07

 

 

 

86.79

 

 

 

85.44

 

 

 

83.46

 

 

 

78.43

 

 

Annualized net loan charge-offs and recoveries /average loans

 

0.06

 

 

 

0.01

 

 

 

0.02

 

 

 

0.07

 

 

 

0.02

 

 

Effective income tax rate

 

19.66

 

 

 

16.83

 

 

 

16.80

 

 

 

19.02

 

 

 

18.51

 

 

Trust assets, market value at period end

$

5,360,657

 

 

$

4,982,324

 

 

$

5,127,265

 

 

$

5,026,631

 

 

$

4,878,479

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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

 

 

 

 

December 31,

 

 

 

 

September 30,

 

September 30, 2023

 

 

Balance sheets

 

2023

 

 

2022

 

 

% Change

 

2023

 

to December 31, 2023

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

158,504

 

 

$

166,182

 

 

 

(4.6

)

$

153,012

 

 

3.6

 

 

Due from banks - interest bearing

 

 

436,879

 

 

 

242,229

 

 

 

80.4

 

 

342,070

 

 

27.7

 

 

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity securities, at fair value

 

 

12,320

 

 

 

11,506

 

 

 

7.1

 

 

11,453

 

 

7.6

 

 

Available-for-sale debt securities, at fair value

 

 

2,194,329

 

 

 

2,529,140

 

 

 

(13.2

)

 

2,196,141

 

 

(0.1

)

 

Held-to-maturity debt securities (fair values of $1,069,159; $1,084,390 and $998,987, respectively)

 

 

1,199,527

 

 

 

1,248,629

 

 

 

(3.9

)

 

1,210,992

 

 

(0.9

)

 

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

 

 

(192

)

 

 

(220

)

 

 

12.7

 

 

(180

)

 

(6.7

)

 

Net held-to-maturity debt securities

 

 

1,199,335

 

 

 

1,248,409

 

 

 

(3.9

)

 

1,210,812

 

 

(0.9

)

 

Total securities

 

 

3,405,984

 

 

 

3,789,055

 

 

 

(10.1

)

 

3,418,406

 

 

(0.4

)

 

Loans held for sale

 

 

16,354

 

 

 

8,249

 

 

 

98.3

 

 

17,677

 

 

(7.5

)

 

Portfolio loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate

 

 

6,565,448

 

 

 

6,061,344

 

 

 

8.3

 

 

6,387,183

 

 

2.8

 

 

Commercial and industrial

 

 

1,670,659

 

 

 

1,579,395

 

 

 

5.8

 

 

1,587,611

 

 

5.2

 

 

Residential real estate

 

 

2,438,574

 

 

 

2,140,584

 

 

 

13.9

 

 

2,392,531

 

 

1.9

 

 

Home equity

 

 

734,219

 

 

 

695,065

 

 

 

5.6

 

 

715,186

 

 

2.7

 

 

Consumer

 

 

229,561

 

 

 

226,340

 

 

 

1.4

 

 

233,362

 

 

(1.6

)

 

Total portfolio loans, net of unearned income

 

 

11,638,461

 

 

 

10,702,728

 

 

 

8.7

 

 

11,315,873

 

 

2.9

 

 

Allowance for credit losses - loans

 

 

(130,675

)

 

 

(117,790

)

 

 

(10.9

)

 

(126,615

)

 

(3.2

)

 

Net portfolio loans

 

 

11,507,786

 

 

 

10,584,938

 

 

 

8.7

 

 

11,189,258

 

 

2.8

 

 

Premises and equipment, net

 

 

233,571

 

 

 

220,892

 

 

 

5.7

 

 

226,377

 

 

3.2

 

 

Accrued interest receivable

 

 

77,435

 

 

 

68,522

 

 

 

13.0

 

 

73,014

 

 

6.1

 

 

Goodwill and other intangible assets, net

 

 

1,132,267

 

 

 

1,141,355

 

 

 

(0.8

)

 

1,134,510

 

 

(0.2

)

 

Bank-owned life insurance

 

 

355,033

 

 

 

352,361

 

 

 

0.8

 

 

356,962

 

 

(0.5

)

 

Other assets

 

 

388,561

 

 

 

358,122

 

 

 

8.5

 

 

433,091

 

 

(10.3

)

 

Total Assets

 

$

17,712,374

 

 

$

16,931,905

 

 

 

4.6

 

$

17,344,377

 

 

2.1

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest bearing demand

 

$

3,962,592

 

 

$

4,700,438

 

 

 

(15.7

)

$

4,169,956

 

 

(5.0

)

 

Interest bearing demand

 

 

3,463,443

 

 

 

3,119,807

 

 

 

11.0

 

 

3,278,956

 

 

5.6

 

 

Money market

 

 

2,017,713

 

 

 

1,684,023

 

 

 

19.8

 

 

1,905,001

 

 

5.9

 

 

Savings deposits

 

 

2,493,254

 

 

 

2,741,004

 

 

 

(9.0

)

 

2,559,894

 

 

(2.6

)

 

Certificates of deposit

 

 

1,231,702

 

 

 

885,818

 

 

 

39.0

 

 

1,176,421

 

 

4.7

 

 

Total deposits

 

 

13,168,704

 

 

 

13,131,090

 

 

 

0.3

 

 

13,090,228

 

 

0.6

 

 

Federal Home Loan Bank borrowings

 

 

1,350,000

 

 

 

705,000

 

 

 

91.5

 

 

1,125,000

 

 

20.0

 

 

Other short-term borrowings

 

 

105,893

 

 

 

135,069

 

 

 

(21.6

)

 

106,693

 

 

(0.7

)

 

Subordinated debt and junior subordinated debt

 

 

279,078

 

 

 

281,404

 

 

 

(0.8

)

 

282,079

 

 

(1.1

)

 

Total borrowings

 

 

1,734,971

 

 

 

1,121,473

 

 

 

54.7

 

 

1,513,772

 

 

14.6

 

 

Accrued interest payable

 

 

11,121

 

 

 

4,593

 

 

 

142.1

 

 

11,416

 

 

(2.6

)

 

Other liabilities

 

 

264,516

 

 

 

248,087

 

 

 

6.6

 

 

281,020

 

 

(5.9

)

 

Total Liabilities

 

 

15,179,312

 

 

 

14,505,243

 

 

 

4.6

 

 

14,896,436

 

 

1.9

 

 

Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock, no par value; 1,000,000 shares authorized; 150,000 shares 6.75% non-cumulative perpetual preferred stock, Series A, liquidation preference $150.0 million, issued and outstanding, respectively

 

 

144,484

 

 

 

144,484

 

 

 

-

 

 

144,484

 

 

-

 

 

Common stock, $2.0833 par value; 100,000,000 shares authorized; 68,081,306 shares issued; 59,376,435, 59,198,963 and 59,364,696 shares outstanding, respectively

 

 

141,834

 

 

 

141,834

 

 

 

-

 

 

141,834

 

 

-

 

 

Capital surplus

 

 

1,635,859

 

 

 

1,635,877

 

 

 

(0.0

)

 

1,633,395

 

 

0.2

 

 

Retained earnings

 

 

1,142,586

 

 

 

1,077,675

 

 

 

6.0

 

 

1,131,597

 

 

1.0

 

 

Treasury stock (8,704,871, 8,882,343 and 8,716,610 shares - at cost, respectively)

 

 

(302,995

)

 

 

(308,964

)

 

 

1.9

 

 

(303,424

)

 

0.1

 

 

Accumulated other comprehensive loss

 

 

(226,693

)

 

 

(262,416

)

 

 

13.6

 

 

(297,906

)

 

23.9

 

 

Deferred benefits for directors

 

 

(2,013

)

 

 

(1,828

)

 

 

(10.1

)

 

(2,039

)

 

1.3

 

 

Total Shareholders' Equity

 

 

2,533,062

 

 

 

2,426,662

 

 

 

4.4

 

 

2,447,941

 

 

3.5

 

 

Total Liabilities and Shareholders' Equity

 

$

17,712,374

 

 

$

16,931,905

 

 

 

4.6

 

$

17,344,377

 

 

2.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WESBANCO, INC.

Consolidated Selected Financial Highlights

(unaudited, dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended Dec. 31,

 

 

 

For the Twelve Months Ended Dec. 31,

 

 

 

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

 

 

Average balance sheet and net interest margin analysis

 

Average

 

Average

 

 

 

Average

 

Average

 

 

 

Average

 

Average

 

 

 

Average

 

Average

 

 

 

 

 

Balance

 

Rate

 

 

 

Balance

 

Rate

 

 

 

Balance

 

Rate

 

 

 

Balance

 

Rate

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Due from banks - interest bearing

 

$

332,670

 

 

6.25

 

%

 

$

178,706

 

 

4.32

 

%

 

$

348,109

 

 

5.43

 

%

 

$

611,482

 

 

0.94

 

%

 

Loans, net of unearned income (1)

 

 

11,490,379

 

 

5.61

 

 

 

 

10,456,648

 

 

4.68

 

 

 

 

11,132,618

 

 

5.36

 

 

 

 

10,083,925

 

 

4.19

 

 

 

Securities: (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

3,010,064

 

 

2.35

 

 

 

 

3,429,372

 

 

2.16

 

 

 

 

3,150,781

 

 

2.33

 

 

 

 

3,461,414

 

 

1.91

 

 

 

Tax-exempt (3)

 

 

770,186

 

 

3.02

 

 

 

 

811,593

 

 

3.00

 

 

 

 

783,697

 

 

3.04

 

 

 

 

789,564

 

 

3.02

 

 

 

Total securities

 

 

3,780,250

 

 

2.48

 

 

 

 

4,240,965

 

 

2.32

 

 

 

 

3,934,478

 

 

2.47

 

 

 

 

4,250,978

 

 

2.12

 

 

 

Other earning assets

 

 

52,879

 

 

8.57

 

 

 

 

19,494

 

 

3.20

 

%

 

 

55,368

 

 

6.26

 

 

 

 

15,265

 

 

3.66

 

 

 

Total earning assets (3)

 

 

15,656,178

 

 

4.88

 

%

 

 

14,895,813

 

 

4.00

 

%

 

 

15,470,573

 

 

4.63

 

%

 

 

14,961,650

 

 

3.47

 

%

 

Other assets

 

 

1,769,933

 

 

 

 

 

 

1,790,117

 

 

 

 

 

 

1,789,147

 

 

 

 

 

 

1,917,891

 

 

 

 

 

Total Assets

 

$

17,426,111

 

 

 

 

 

$

16,685,930

 

 

 

 

 

$

17,259,720

 

 

 

 

 

$

16,879,541

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing demand deposits

 

$

3,417,220

 

 

2.75

 

%

 

$

3,169,673

 

 

0.91

 

%

 

$

3,243,786

 

 

2.25

 

%

 

$

3,314,384

 

 

0.37

 

%

 

Money market accounts

 

 

1,985,203

 

 

2.86

 

 

 

 

1,739,874

 

 

0.43

 

 

 

 

1,763,921

 

 

2.08

 

 

 

 

1,774,152

 

 

0.20

 

 

 

Savings deposits

 

 

2,515,798

 

 

1.15

 

 

 

 

2,726,647

 

 

0.36

 

 

 

 

2,655,105

 

 

0.90

 

 

 

 

2,692,568

 

 

0.15

 

 

 

Certificates of deposit

 

 

1,191,583

 

 

2.79

 

 

 

 

931,853

 

 

0.32

 

 

 

 

1,008,950

 

 

1.83

 

 

 

 

1,098,614

 

 

0.37

 

 

 

Total interest bearing deposits

 

 

9,109,804

 

 

2.34

 

 

 

 

8,568,047

 

 

0.57

 

 

 

 

8,671,762

 

 

1.75

 

 

 

 

8,879,718

 

 

0.27

 

 

 

Federal Home Loan Bank borrowings

 

 

1,080,163

 

 

5.45

 

 

 

 

282,934

 

 

3.69

 

 

 

 

1,138,247

 

 

5.21

 

 

 

 

175,104

 

 

2.27

 

 

 

Repurchase agreements

 

 

114,801

 

 

3.08

 

 

 

 

136,099

 

 

0.94

 

 

 

 

115,817

 

 

2.20

 

 

 

 

146,590

 

 

0.39

 

 

 

Subordinated debt and junior subordinated debt

 

 

282,004

 

 

5.84

 

 

 

 

281,265

 

 

5.27

 

 

 

 

281,788

 

 

5.85

 

 

 

 

248,192

 

 

4.38

 

 

 

Total interest bearing liabilities (4)

 

 

10,586,772

 

 

2.76

 

%

 

 

9,268,345

 

 

0.82

 

%

 

 

10,207,614

 

 

2.25

 

%

 

 

9,449,604

 

 

0.42

 

%

 

Non-interest bearing demand deposits

 

 

4,086,366

 

 

 

 

 

 

4,763,773

 

 

 

 

 

 

4,316,245

 

 

 

 

 

 

4,708,758

 

 

 

 

 

Other liabilities

 

 

284,448

 

 

 

 

 

 

243,051

 

 

 

 

 

 

261,234

 

 

 

 

 

 

205,670

 

 

 

 

 

Shareholders' equity

 

 

2,468,525

 

 

 

 

 

 

2,410,761

 

 

 

 

 

 

2,474,627

 

 

 

 

 

 

2,515,509

 

 

 

 

 

Total Liabilities and Shareholders' Equity

 

$

17,426,111

 

 

 

 

 

$

16,685,930

 

 

 

 

 

$

17,259,720

 

 

 

 

 

$

16,879,541

 

 

 

 

 

Taxable equivalent net interest spread

 

 

 

 

2.12

 

%

 

 

 

 

3.18

 

%

 

 

 

 

2.38

 

%

 

 

 

 

3.05

 

%

 

Taxable equivalent net interest margin

 

 

 

 

3.02

 

%

 

 

 

 

3.49

 

%

 

 

 

 

3.14

 

%

 

 

 

 

3.20

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Gross of allowance for credit losses and net of unearned income. Includes non-accrual and loans held for sale. Loan fees included in interest income on loans were $0.7 million and $0.8 million for the three months ended December 31, 2023 and 2022, respectively, and were $2.7 million and $8.8 million for the years ended December 31, 2023 and 2022, respectively. Additionally, loan accretion included in interest income on loans acquired from prior acquisitions was $1.0 million and $1.8 million for the three months ended December 31, 2023 and 2022, respectively, and $4.5 million and $8.0 million for the years ended December 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 for both the three months ended December 31, 2023 and 2022, and $0.5 million and $1.1 million for the years ended December 31, 2023 and 2022, respectively.

 

 

WESBANCO, INC.

 

Consolidated Selected Financial Highlights

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

 

 

 

Dec. 31,

 

 

Sept. 30,

 

 

June 30,

 

 

Mar. 31,

 

 

Dec. 31,

 

 

Statement of Income

 

2023

 

 

2023

 

 

2023

 

 

2023

 

 

2022

 

 

Interest and dividend income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

162,498

 

 

$

155,206

 

 

$

145,741

 

 

$

133,406

 

 

$

123,307

 

 

Interest and dividends on securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

17,798

 

 

 

18,082

 

 

 

18,483

 

 

 

19,086

 

 

 

18,655

 

 

Tax-exempt

 

 

4,639

 

 

 

4,679

 

 

 

4,723

 

 

 

4,790

 

 

 

4,853

 

 

Total interest and dividends on securities

 

 

22,437

 

 

 

22,761

 

 

 

23,206

 

 

 

23,876

 

 

 

23,508

 

 

Other interest income

 

 

6,383

 

 

 

5,622

 

 

 

7,108

 

 

 

3,273

 

 

 

2,103

 

 

Total interest and dividend income

 

 

191,318

 

 

 

183,589

 

 

 

176,055

 

 

 

160,555

 

 

 

148,918

 

 

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing demand deposits

 

 

23,686

 

 

 

20,873

 

 

 

17,203

 

 

 

11,106

 

 

 

7,264

 

 

Money market deposits

 

 

14,302

 

 

 

10,841

 

 

 

7,220

 

 

 

4,252

 

 

 

1,890

 

 

Savings deposits

 

 

7,310

 

 

 

6,699

 

 

 

5,860

 

 

 

4,000

 

 

 

2,454

 

 

Certificates of deposit

 

 

8,380

 

 

 

5,983

 

 

 

2,906

 

 

 

1,203

 

 

 

742

 

 

Total interest expense on deposits

 

 

53,678

 

 

 

44,396

 

 

 

33,189

 

 

 

20,561

 

 

 

12,350

 

 

Federal Home Loan Bank borrowings

 

 

14,841

 

 

 

16,463

 

 

 

16,713

 

 

 

11,300

 

 

 

2,634

 

 

Other short-term borrowings

 

 

891

 

 

 

745

 

 

 

492

 

 

 

418

 

 

 

324

 

 

Subordinated debt and junior subordinated debt

 

 

4,150

 

 

 

4,303

 

 

 

4,094

 

 

 

3,944

 

 

 

3,736

 

 

Total interest expense

 

 

73,560

 

 

 

65,907

 

 

 

54,488

 

 

 

36,223

 

 

 

19,044

 

 

Net interest income

 

 

117,758

 

 

 

117,682

 

 

 

121,567

 

 

 

124,332

 

 

 

129,874

 

 

Provision for credit losses

 

 

4,803

 

 

 

6,327

 

 

 

3,028

 

 

 

3,577

 

 

 

3,123

 

 

Net interest income after provision for credit losses

 

 

112,955

 

 

 

111,355

 

 

 

118,539

 

 

 

120,755

 

 

 

126,751

 

 

Non-interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trust fees

 

 

7,019

 

 

 

6,705

 

 

 

6,918

 

 

 

7,494

 

 

 

6,672

 

 

Service charges on deposits

 

 

6,989

 

 

 

6,726

 

 

 

6,232

 

 

 

6,170

 

 

 

6,762

 

 

Electronic banking fees

 

 

4,890

 

 

 

4,949

 

 

 

5,010

 

 

 

4,605

 

 

 

4,695

 

 

Net swap fee and valuation (loss)/income

 

 

(345

)

 

 

3,845

 

 

 

2,612

 

 

 

799

 

 

 

1,015

 

 

Net securities brokerage revenue

 

 

2,563

 

 

 

2,394

 

 

 

2,523

 

 

 

2,576

 

 

 

2,556

 

 

Bank-owned life insurance

 

 

3,455

 

 

 

2,398

 

 

 

3,189

 

 

 

1,959

 

 

 

2,464

 

 

Mortgage banking income

 

 

650

 

 

 

975

 

 

 

601

 

 

 

426

 

 

 

621

 

 

Net securities gains/(losses)

 

 

887

 

 

 

(337

)

 

 

205

 

 

 

145

 

 

 

(600

)

 

Net gains/(losses) on other real estate owned and other assets

 

 

445

 

 

 

(28

)

 

 

871

 

 

 

232

 

 

 

550

 

 

Other income

 

 

3,521

 

 

 

3,252

 

 

 

3,680

 

 

 

3,247

 

 

 

3,035

 

 

Total non-interest income

 

 

30,074

 

 

 

30,879

 

 

 

31,841

 

 

 

27,653

 

 

 

27,770

 

 

Non-interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and wages

 

 

45,164

 

 

 

45,351

 

 

 

44,471

 

 

 

41,952

 

 

 

42,606

 

 

Employee benefits

 

 

11,409

 

 

 

11,922

 

 

 

11,511

 

 

 

12,060

 

 

 

9,198

 

 

Net occupancy

 

 

6,417

 

 

 

6,146

 

 

 

6,132

 

 

 

6,643

 

 

 

6,262

 

 

Equipment and software

 

 

9,648

 

 

 

9,132

 

 

 

8,823

 

 

 

9,063

 

 

 

8,712

 

 

Marketing

 

 

2,975

 

 

 

3,115

 

 

 

2,763

 

 

 

2,325

 

 

 

1,788

 

 

FDIC insurance

 

 

3,369

 

 

 

3,125

 

 

 

2,871

 

 

 

2,884

 

 

 

2,051

 

 

Amortization of intangible assets

 

 

2,243

 

 

 

2,262

 

 

 

2,282

 

 

 

2,301

 

 

 

2,541

 

 

Restructuring and merger-related expense

 

-

 

 

 

641

 

 

 

35

 

 

 

3,153

 

 

 

11

 

 

Other operating expenses

 

 

18,278

 

 

 

16,245

 

 

 

17,549

 

 

 

15,744

 

 

 

17,286

 

 

Total non-interest expense

 

 

99,503

 

 

 

97,939

 

 

 

96,437

 

 

 

96,125

 

 

 

90,455

 

 

Income before provision for income taxes

 

 

43,526

 

 

 

44,295

 

 

 

53,943

 

 

 

52,283

 

 

 

64,066

 

 

Provision for income taxes

 

 

8,558

 

 

 

7,453

 

 

 

9,063

 

 

 

9,942

 

 

 

11,856

 

 

Net Income

 

 

34,968

 

 

 

36,842

 

 

 

44,880

 

 

 

42,341

 

 

 

52,210

 

 

Preferred stock dividends

 

 

2,531

 

 

 

2,531

 

 

 

2,531

 

 

 

2,531

 

 

 

2,531

 

 

Net income available to common shareholders

 

$

32,437

 

 

$

34,311

 

 

$

42,349

 

 

$

39,810

 

 

$

49,679

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable equivalent net interest income

 

$

118,991

 

 

$

118,926

 

 

$

122,822

 

 

$

125,605

 

 

$

131,164

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per common share data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - basic

 

$

0.55

 

 

$

0.58

 

 

$

0.71

 

 

$

0.67

 

 

$

0.84

 

 

Net income per common share - diluted

 

 

0.55

 

 

 

0.58

 

 

 

0.71

 

 

 

0.67

 

 

 

0.84

 

 

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

 

 

0.55

 

 

 

0.59

 

 

 

0.71

 

 

 

0.71

 

 

 

0.84

 

 

Dividends declared

 

 

0.36

 

 

 

0.35

 

 

 

0.35

 

 

 

0.35

 

 

 

0.35

 

 

Book value (period end)

 

 

40.23

 

 

 

38.80

 

 

 

39.10

 

 

 

39.34

 

 

 

38.55

 

 

Tangible book value (period end) (1)

 

 

21.28

 

 

 

19.82

 

 

 

20.08

 

 

 

20.27

 

 

 

19.43

 

 

Average common shares outstanding - basic

 

 

59,370,171

 

 

 

59,358,653

 

 

 

59,263,949

 

 

 

59,217,711

 

 

 

59,188,238

 

 

Average common shares outstanding - diluted

 

 

59,479,031

 

 

 

59,443,366

 

 

 

59,385,847

 

 

 

59,375,053

 

 

 

59,374,204

 

 

Period end common shares outstanding

 

 

59,376,435

 

 

 

59,364,696

 

 

 

59,355,062

 

 

 

59,246,569

 

 

 

59,198,963

 

 

Period end preferred shares outstanding

 

 

150,000

 

 

 

150,000

 

 

 

150,000

 

 

 

150,000

 

 

 

150,000

 

 

Full time equivalent employees

 

 

2,368

 

 

 

2,427

 

 

 

2,542

 

 

 

2,501

 

 

 

2,495

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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

 

 

 

 

 

Dec. 31,

 

 

Sept. 30,

 

 

June 30,

 

 

Mar. 31,

 

 

Dec. 31,

 

 

 

Asset quality data

 

2023

 

 

2023

 

 

2023

 

 

2023

 

 

2022

 

 

 

Non-performing assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Troubled debt restructurings - accruing

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

3,230

 

 

 

Non-accrual loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Troubled debt restructurings

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,711

 

 

 

Other non-accrual loans

 

 

26,808

 

 

 

29,878

 

 

 

31,555

 

 

 

39,216

 

 

 

36,474

 

 

 

Total non-accrual loans

 

 

26,808

 

 

 

29,878

 

 

 

31,555

 

 

 

39,216

 

 

 

38,185

 

 

 

Total non-performing loans

 

 

26,808

 

 

 

29,878

 

 

 

31,555

 

 

 

39,216

 

 

 

41,415

 

 

 

Other real estate and repossessed assets

 

 

1,497

 

 

 

1,333

 

 

 

1,432

 

 

 

1,554

 

 

 

1,486

 

 

 

Total non-performing assets

 

$

28,305

 

 

$

31,211

 

 

$

32,987

 

 

$

40,770

 

 

$

42,901

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Past due loans (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans past due 30-89 days

 

$

22,875

 

 

$

16,030

 

 

$

18,348

 

 

$

12,920

 

 

$

15,439

 

 

 

Loans past due 90 days or more

 

 

9,638

 

 

 

8,606

 

 

 

5,147

 

 

 

4,570

 

 

 

5,443

 

 

 

Total past due loans

 

$

32,513

 

 

$

24,636

 

 

$

23,495

 

 

$

17,490

 

 

$

20,882

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Criticized and classified loans (2):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Criticized loans

 

$

183,174

 

 

$

180,136

 

 

$

119,771

 

 

$

116,608

 

 

$

147,945

 

 

 

Classified loans

 

 

75,497

 

 

 

70,997

 

 

 

67,036

 

 

 

57,222

 

 

 

102,555

 

 

 

Total criticized and classified loans

 

$

258,671

 

 

$

251,133

 

 

$

186,807

 

 

$

173,830

 

 

$

250,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans past due 30-89 days / total portfolio loans

 

 

0.20

 

%

 

0.14

 

%

 

0.16

 

%

 

0.12

 

%

 

0.14

 

%

 

Loans past due 90 days or more / total portfolio loans

 

 

0.08

 

 

 

0.08

 

 

 

0.05

 

 

 

0.04

 

 

 

0.05

 

 

 

Non-performing loans / total portfolio loans

 

 

0.23

 

 

 

0.26

 

 

 

0.28

 

 

 

0.36

 

 

 

0.39

 

 

 

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

 

 

0.24

 

 

 

0.28

 

 

 

0.30

 

 

 

0.37

 

 

 

0.40

 

 

 

Non-performing assets / total assets

 

 

0.16

 

 

 

0.18

 

 

 

0.19

 

 

 

0.24

 

 

 

0.25

 

 

 

Criticized and classified loans / total portfolio loans

 

 

2.22

 

 

 

2.22

 

 

 

1.68

 

 

 

1.60

 

 

 

2.34

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses - loans

 

$

130,675

 

 

$

126,615

 

 

$

120,166

 

 

$

118,698

 

 

$

117,790

 

 

 

Allowance for credit losses - loan commitments

 

 

8,604

 

 

 

9,729

 

 

 

10,124

 

 

 

9,127

 

 

 

8,368

 

 

 

Provision for credit losses

 

 

4,803

 

 

 

6,327

 

 

 

3,028

 

 

 

3,577

 

 

 

3,123

 

 

 

Net loan and deposit account overdraft charge-offs and recoveries

 

 

1,857

 

 

 

286

 

 

 

581

 

 

 

1,919

 

 

 

493

 

 

 

Annualized net loan charge-offs and recoveries / average loans

 

 

0.06

 

%

 

0.01

 

%

 

0.02

 

%

 

0.07

 

%

 

0.02

 

%

 

Allowance for credit losses - loans / total portfolio loans

 

 

1.12

 

%

 

1.12

 

%

 

1.08

 

%

 

1.09

 

%

 

1.10

 

%

 

Allowance for credit losses - loans / non-performing loans

 

 

4.87

 

x

 

4.24

 

x

 

3.81

 

x

 

3.03

 

x

 

2.84

 

x

 

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

 

 

2.20

 

x

 

2.32

 

x

 

2.18

 

x

 

2.09

 

x

 

1.89

 

x

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

 

 

 

 

Dec. 31,

 

 

Sept. 30,

 

 

June 30,

 

 

Mar. 31,

 

 

Dec. 31,

 

 

 

 

 

2023

 

 

2023

 

 

2023

 

 

2023

 

 

2022

 

 

 

Capital ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier I leverage capital

 

 

9.87

 

%

 

9.84

 

%

 

9.78

 

%

 

9.82

 

%

 

9.90

 

%

 

Tier I risk-based capital

 

 

12.05

 

 

 

12.07

 

 

 

12.12

 

 

 

12.22

 

 

 

12.33

 

 

 

Total risk-based capital

 

 

14.91

 

 

 

14.97

 

 

 

14.83

 

 

 

14.97

 

 

 

15.11

 

 

 

Common equity tier 1 capital ratio (CET 1)

 

 

10.99

 

 

 

11.00

 

 

 

11.03

 

 

 

11.11

 

 

 

11.20

 

 

 

Average shareholders' equity to average assets

 

 

14.17

 

 

 

14.29

 

 

 

14.42

 

 

 

14.48

 

 

 

14.45

 

 

 

Tangible equity to tangible assets (3)

 

 

8.49

 

 

 

8.15

 

 

 

8.24

 

 

 

8.33

 

 

 

8.19

 

 

 

Tangible common equity to tangible assets (3)

 

 

7.62

 

 

 

7.26

 

 

 

7.35

 

 

 

7.44

 

 

 

7.28

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.

 

 

 

 

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

 

 

Year to Date

 

 

 

 

 

Dec. 31,

 

 

Sept. 30,

 

 

June 30,

 

 

Mar. 31,

 

 

Dec. 31,

 

 

Dec. 31,

 

 

 

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

 

2023

 

 

2023

 

 

2023

 

 

2023

 

 

2022

 

 

2023

 

2022

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

 

$

32,437

 

 

$

34,311

 

 

$

42,349

 

 

$

39,810

 

 

$

49,679

 

 

$

148,907

 

$

181,988

 

 

 

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

 

 

-

 

 

 

506

 

 

 

28

 

 

 

2,491

 

 

 

9

 

 

 

3,026

 

 

1,361

 

 

 

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

 

 

32,437

 

 

 

34,817

 

 

 

42,377

 

 

 

42,301

 

 

 

49,688

 

 

 

151,933

 

 

183,349

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total assets

 

$

17,426,111

 

 

$

17,341,959

 

 

$

17,294,346

 

 

$

16,970,554

 

 

$

16,685,930

 

 

$

17,259,720

 

$

16,879,541

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

0.74

%

 

 

0.80

%

 

 

0.98

%

 

 

1.01

%

 

 

1.18

%

 

 

0.88

%

 

1.09

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

 

$

32,437

 

 

$

34,311

 

 

$

42,349

 

 

$

39,810

 

 

$

49,679

 

 

$

148,907

 

$

181,988

 

 

 

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

 

 

-

 

 

 

506

 

 

 

28

 

 

 

2,491

 

 

 

9

 

 

 

3,026

 

 

1,361

 

 

 

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

 

 

32,437

 

 

 

34,817

 

 

 

42,377

 

 

 

42,301

 

 

 

49,688

 

 

 

151,933

 

 

183,349

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total shareholders' equity

 

 

2,468,525

 

 

 

2,478,662

 

 

 

2,493,096

 

 

 

2,458,067

 

 

 

2,410,761

 

 

 

2,474,627

 

 

2,515,509

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

5.21

%

 

 

5.57

%

 

 

6.82

%

 

 

6.98

%

 

 

8.18

%

 

 

6.14

%

 

7.29

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average tangible equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

 

$

32,437

 

 

$

34,311

 

 

$

42,349

 

 

$

39,810

 

 

$

49,679

 

 

$

148,907

 

$

181,988

 

 

 

Plus: amortization of intangibles (1)

 

 

1,772

 

 

 

1,787

 

 

 

1,803

 

 

 

1,818

 

 

 

2,007

 

 

 

7,180

 

 

8,120

 

 

 

Net income available to common shareholders before amortization of intangibles

 

 

34,209

 

 

 

36,098

 

 

 

44,152

 

 

 

41,628

 

 

 

51,686

 

 

 

156,087

 

 

190,108

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total shareholders' equity

 

 

2,468,525

 

 

 

2,478,662

 

 

 

2,493,096

 

 

 

2,458,067

 

 

 

2,410,761

 

 

 

2,474,627

 

 

2,515,509

 

 

 

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

 

 

(1,125,593

)

 

 

(1,127,404

)

 

 

(1,129,155

)

 

 

(1,131,027

)

 

 

(1,132,894

)

 

 

(1,128,277

)

 

(1,136,062

)

 

 

Average tangible equity

 

$

1,342,932

 

 

$

1,351,258

 

 

$

1,363,941

 

 

$

1,327,040

 

 

$

1,277,867

 

 

$

1,346,350

 

$

1,379,447

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average tangible equity (annualized) (2)

 

 

10.11

%

 

 

10.60

%

 

 

12.98

%

 

 

12.72

%

 

 

16.05

%

 

 

11.59

%

 

13.78

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average tangible common equity

 

$

1,198,448

 

 

$

1,206,774

 

 

$

1,219,457

 

 

$

1,182,556

 

 

$

1,133,383

 

 

$

1,201,866

 

$

1,234,963

 

 

 

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

 

 

11.32

%

 

 

11.87

%

 

 

14.52

%

 

 

14.28

%

 

 

18.09

%

 

 

12.99

%

 

15.39

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

 

$

32,437

 

 

$

34,311

 

 

$

42,349

 

 

$

39,810

 

 

$

49,679

 

 

$

148,907

 

$

181,988

 

 

 

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

 

 

-

 

 

 

506

 

 

 

28

 

 

 

2,491

 

 

 

9

 

 

 

3,026

 

 

1,361

 

 

 

Plus: amortization of intangibles (1)

 

 

1,772

 

 

 

1,787

 

 

 

1,803

 

 

 

1,818

 

 

 

2,007

 

 

 

7,180

 

 

8,120

 

 

 

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

 

 

34,209

 

 

 

36,604

 

 

 

44,180

 

 

 

44,119

 

 

 

51,695

 

 

 

159,113

 

 

191,469

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total shareholders' equity

 

 

2,468,525

 

 

 

2,478,662

 

 

 

2,493,096

 

 

 

2,458,067

 

 

 

2,410,761

 

 

 

2,474,627

 

 

2,515,509

 

 

 

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

 

 

(1,125,593

)

 

 

(1,127,404

)

 

 

(1,129,155

)

 

 

(1,131,027

)

 

 

(1,132,894

)

 

 

(1,128,277

)

 

(1,136,062

)

 

 

Average tangible equity

 

$

1,342,932

 

 

$

1,351,258

 

 

$

1,363,941

 

 

$

1,327,040

 

 

$

1,277,867

 

 

$

1,346,350

 

$

1,379,447

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

10.11

%

 

 

10.75

%

 

 

12.99

%

 

 

13.48

%

 

 

16.05

%

 

 

11.82

%

 

13.88

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average tangible common equity

 

$

1,198,448

 

 

$

1,206,774

 

 

$

1,219,457

 

 

$

1,182,556

 

 

$

1,133,383

 

 

$

1,201,866

 

$

1,234,963

 

 

 

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

 

 

11.32

%

 

 

12.03

%

 

 

14.53

%

 

 

15.13

%

 

 

18.10

%

 

 

13.24

%

 

15.50

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Year to Date

 

 

 

Dec. 31,

 

 

Sept. 30,

 

 

June 30,

 

 

Mar. 31,

 

 

Dec. 31,

 

 

Dec. 31,

 

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

 

2023

 

 

2023

 

 

2023

 

 

2023

 

 

2022

 

 

2023

 

2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest expense

 

$

99,503

 

 

$

97,939

 

 

$

96,437

 

 

$

96,125

 

 

$

90,455

 

 

$

390,002

 

$

356,966

 

Less: restructuring and merger-related expense

 

 

-

 

 

 

(641

)

 

 

(35

)

 

 

(3,153

)

 

 

(11

)

 

 

(3,830

)

 

(1,723

)

Non-interest expense excluding restructuring and merger-related expense

 

 

99,503

 

 

 

97,298

 

 

 

96,402

 

 

 

92,972

 

 

 

90,444

 

 

 

386,172

 

 

355,243

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income on a fully taxable equivalent basis

 

 

118,991

 

 

 

118,926

 

 

 

122,822

 

 

 

125,605

 

 

 

131,164

 

 

 

486,343

 

 

479,315

 

Non-interest income

 

 

30,074

 

 

 

30,879

 

 

 

31,841

 

 

 

27,653

 

 

 

27,770

 

 

 

120,447

 

 

117,391

 

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

 

$

149,065

 

 

$

149,805

 

 

$

154,663

 

 

$

153,258

 

 

$

158,934

 

 

$

606,790

 

$

596,706

 

Efficiency Ratio

 

 

66.75

%

 

 

64.95

%

 

 

62.33

%

 

 

60.66

%

 

 

56.91

%

 

 

63.64

%

 

59.53

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

 

$

32,437

 

 

$

34,311

 

 

$

42,349

 

 

$

39,810

 

 

$

49,679

 

 

$

148,907

 

$

181,988

 

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

 

 

-

 

 

 

506

 

 

 

28

 

 

 

2,491

 

 

 

9

 

 

 

3,026

 

 

1,361

 

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

 

$

32,437

 

 

$

34,817

 

 

$

42,377

 

 

$

42,301

 

 

$

49,688

 

 

$

151,933

 

$

183,349

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share - diluted

 

$

0.55

 

 

$

0.58

 

 

$

0.71

 

 

$

0.67

 

 

$

0.84

 

 

$

2.51

 

$

3.02

 

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

 

$

0.55

 

 

$

0.59

 

 

$

0.71

 

 

$

0.71

 

 

$

0.84

 

 

$

2.56

 

$

3.04

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Period End

 

 

 

 

 

 

 

 

Dec. 31,

 

 

Sept. 30,

 

 

June 30,

 

 

Mar. 31,

 

 

Dec. 31,

 

 

 

 

 

 

 

 

2023

 

 

2023

 

 

2023

 

 

2023

 

 

2022

 

 

 

 

 

 

Tangible book value per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total shareholders' equity

 

$

2,533,062

 

 

$

2,447,941

 

 

$

2,464,998

 

 

$

2,475,457

 

 

$

2,426,662

 

 

 

 

 

 

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

 

 

(1,124,811

)

 

 

(1,126,583

)

 

 

(1,128,371

)

 

 

(1,130,172

)

 

 

(1,131,990

)

 

 

 

 

 

Less: preferred shareholders' equity

 

 

(144,484

)

 

 

(144,484

)

 

 

(144,484

)

 

 

(144,484

)

 

 

(144,484

)

 

 

 

 

 

Tangible common equity

 

 

1,263,767

 

 

 

1,176,874

 

 

 

1,192,143

 

 

 

1,200,801

 

 

 

1,150,188

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

 

59,376,435

 

 

 

59,364,696

 

 

 

59,355,062

 

 

 

59,246,569

 

 

 

59,198,963

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible book value per share

 

$

21.28

 

 

$

19.82

 

 

$

20.08

 

 

$

20.27

 

 

$

19.43

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity to tangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total shareholders' equity

 

$

2,533,062

 

 

$

2,447,941

 

 

$

2,464,998

 

 

$

2,475,457

 

 

$

2,426,662

 

 

 

 

 

 

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

 

 

(1,124,811

)

 

 

(1,126,583

)

 

 

(1,128,371

)

 

 

(1,130,172

)

 

 

(1,131,990

)

 

 

 

 

 

Tangible equity

 

 

1,408,251

 

 

 

1,321,358

 

 

 

1,336,627

 

 

 

1,345,285

 

 

 

1,294,672

 

 

 

 

 

 

Less: preferred shareholders' equity

 

 

(144,484

)

 

 

(144,484

)

 

 

(144,484

)

 

 

(144,484

)

 

 

(144,484

)

 

 

 

 

 

Tangible common equity

 

 

1,263,767

 

 

 

1,176,874

 

 

 

1,192,143

 

 

 

1,200,801

 

 

 

1,150,188

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

17,712,374

 

 

 

17,344,377

 

 

 

17,356,954

 

 

 

17,274,626

 

 

 

16,931,905

 

 

 

 

 

 

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

 

 

(1,124,811

)

 

 

(1,126,583

)

 

 

(1,128,371

)

 

 

(1,130,172

)

 

 

(1,131,990

)

 

 

 

 

 

Tangible assets

 

$

16,587,563

 

 

$

16,217,794

 

 

$

16,228,583

 

 

$

16,144,454

 

 

$

15,799,915

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible equity to tangible assets

 

 

8.49

%

 

 

8.15

%

 

 

8.24

%

 

 

8.33

%

 

 

8.19

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity to tangible assets

 

 

7.62

%

 

 

7.26

%

 

 

7.35

%

 

 

7.44

%

 

 

7.28

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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

 

 

Year to Date

 

 

 

 

 

Dec. 31,

 

 

Sept. 30,

 

 

June 30,

 

 

Mar. 31,

 

 

Dec. 31,

 

 

Dec. 31,

 

 

 

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

 

2023

 

 

2023

 

 

2023

 

 

2023

 

 

2022

 

 

2023

 

2022

 

 

 

Pre-tax, pre-provision income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before provision for income taxes

 

$

43,526

 

 

$

44,295

 

 

$

53,943

 

 

$

52,283

 

 

$

64,066

 

 

$

194,049

 

$

236,401

 

 

 

Add: provision for credit losses

 

 

4,803

 

 

 

6,327

 

 

 

3,028

 

 

 

3,577

 

 

 

3,123

 

 

 

17,734

 

 

(1,663

)

 

 

Pre-tax, pre-provision income

 

$

48,329

 

 

$

50,622

 

 

$

56,971

 

 

$

55,860

 

 

$

67,189

 

 

$

211,783

 

$

234,738

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before provision for income taxes

 

$

43,526

 

 

$

44,295

 

 

$

53,943

 

 

$

52,283

 

 

$

64,066

 

 

$

194,049

 

$

236,401

 

 

 

Add: provision for credit losses

 

 

4,803

 

 

 

6,327

 

 

 

3,028

 

 

 

3,577

 

 

 

3,123

 

 

 

17,734

 

 

(1,663

)

 

 

Add: restructuring and merger-related expenses

 

 

-

 

 

 

641

 

 

 

35

 

 

 

3,153

 

 

 

11

 

 

 

3,830

 

 

1,723

 

 

 

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

 

$

48,329

 

 

$

51,263

 

 

$

57,006

 

 

$

59,013

 

 

$

67,200

 

 

$

215,613

 

$

236,461

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before provision for income taxes

 

$

43,526

 

 

$

44,295

 

 

$

53,943

 

 

$

52,283

 

 

$

64,066

 

 

$

194,049

 

$

236,401

 

 

 

Add: provision for credit losses

 

 

4,803

 

 

 

6,327

 

 

 

3,028

 

 

 

3,577

 

 

 

3,123

 

 

 

17,734

 

 

(1,663

)

 

 

Add: restructuring and merger-related expenses

 

 

-

 

 

 

641

 

 

 

35

 

 

 

3,153

 

 

 

11

 

 

 

3,830

 

 

1,723

 

 

 

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

 

 

48,329

 

 

 

51,263

 

 

 

57,006

 

 

 

59,013

 

 

 

67,200

 

 

 

215,613

 

 

236,461

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total assets

 

$

17,426,111

 

 

$

17,341,959

 

 

$

17,294,346

 

 

$

16,970,554

 

 

$

16,685,930

 

 

$

17,259,720

 

$

16,879,541

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

1.10

%

 

 

1.17

%

 

 

1.32

%

 

 

1.41

%

 

 

1.60

%

 

 

1.25

%

 

1.40

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before provision for income taxes

 

$

43,526

 

 

$

44,295

 

 

$

53,943

 

 

$

52,283

 

 

$

64,066

 

 

$

194,049

 

$

236,401

 

 

 

Add: provision for credit losses

 

 

4,803

 

 

 

6,327

 

 

 

3,028

 

 

 

3,577

 

 

 

3,123

 

 

 

17,734

 

 

(1,663

)

 

 

Add: restructuring and merger-related expenses

 

 

-

 

 

 

641

 

 

 

35

 

 

 

3,153

 

 

 

11

 

 

 

3,830

 

 

1,723

 

 

 

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

 

 

48,329

 

 

 

51,263

 

 

 

57,006

 

 

 

59,013

 

 

 

67,200

 

 

 

215,613

 

 

236,461

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total shareholders' equity

 

$

2,468,525

 

 

$

2,478,662

 

 

$

2,493,096

 

 

$

2,458,067

 

 

$

2,410,761

 

 

$

2,474,627

 

$

2,515,509

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

7.77

%

 

 

8.21

%

 

 

9.17

%

 

 

9.74

%

 

 

11.06

%

 

 

8.71

%

 

9.40

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before provision for income taxes

 

$

43,526

 

 

$

44,295

 

 

$

53,943

 

 

$

52,283

 

 

$

64,066

 

 

$

194,049

 

$

236,401

 

 

 

Add: provision for credit losses

 

 

4,803

 

 

 

6,327

 

 

 

3,028

 

 

 

3,577

 

 

 

3,123

 

 

 

17,734

 

 

(1,663

)

 

 

Add: amortization of intangibles

 

 

2,243

 

 

 

2,262

 

 

 

2,282

 

 

 

2,301

 

 

 

2,541

 

 

 

9,088

 

 

10,278

 

 

 

Add: restructuring and merger-related expenses

 

 

-

 

 

 

641

 

 

 

35

 

 

 

3,153

 

 

 

11

 

 

 

3,830

 

 

1,723

 

 

 

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

 

 

50,572

 

 

 

53,525

 

 

 

59,288

 

 

 

61,314

 

 

 

69,741

 

 

 

224,701

 

 

246,739

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average total shareholders' equity

 

 

2,468,525

 

 

 

2,478,662

 

 

 

2,493,096

 

 

 

2,458,067

 

 

 

2,410,761

 

 

 

2,474,627

 

 

2,515,509

 

 

 

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

 

 

(1,125,593

)

 

 

(1,127,404

)

 

 

(1,129,155

)

 

 

(1,131,027

)

 

 

(1,132,894

)

 

 

(1,128,277

)

 

(1,136,062

)

 

 

Average tangible equity

 

$

1,342,932

 

 

$

1,351,258

 

 

$

1,363,941

 

 

$

1,327,040

 

 

$

1,277,867

 

 

$

1,346,350

 

$

1,379,447

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

14.94

%

 

 

15.72

%

 

 

17.44

%

 

 

18.74

%

 

 

21.65

%

 

 

16.69

%

 

17.89

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average tangible common equity

 

$

1,198,448

 

 

$

1,206,774

 

 

$

1,219,457

 

 

$

1,182,556

 

 

$

1,133,383

 

 

$

1,201,866

 

$

1,234,963

 

 

 

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

 

 

16.74

%

 

 

17.60

%

 

 

19.50

%

 

 

21.03

%

 

 

24.41

%

 

 

18.70

%

 

19.98

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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.