Business Segments

3 Months Ended

Mar. 31, 2020

NOTE 12. BUSINESS SEGMENTS

Wesbanco operates two reportable segments: community banking and trust and investment services. Wesbanco’s community banking segment offers services traditionally offered by full-service commercial banks, including commercial demand, individual demand and time deposit accounts, as well as commercial, mortgage and individual installment loans, and certain non-traditional offerings, such as insurance and securities brokerage services. The trust and investment services segment offers trust services as well as various alternative investment products including mutual funds. The market value of assets managed or held in custody by the trust and investment services segment was approximately $4.0 billion and $4.5 billion at March 31, 2020 and 2019, respectively. These assets are held by Wesbanco in fiduciary or agency capacities for their customers and therefore are not included as assets on Wesbanco’s Consolidated Balance Sheets.

Condensed financial information by business segment is presented below:

			Trust and
	Community		Investment
(unaudited, in thousands)	Banking		Services		Consolidated
For The Three Months Ended March 31, 2020
Interest and dividend income	$	142,448	$	—	$	142,448
Interest expense		22,286		—		22,286
Net interest income		120,162		—		120,162
Provision for credit losses		29,821		—		29,821
Net interest income after provision for credit losses		90,341		—		90,341
Non-interest income		21,057		6,952		28,009
Non-interest expense		86,918		4,415		91,333
Income before provision for income taxes		24,480		2,537		27,017
Provision for income taxes		3,088		533		3,621
Net income	$	21,392	$	2,004	$	23,396

For The Three Months Ended March 31, 2019
Interest and dividend income	$	119,053	$	—	$	119,053
Interest expense		20,692		—		20,692
Net interest income		98,361		—		98,361
Provision for credit losses		2,507		—		2,507
Net interest income after provision for credit losses		95,854		—		95,854
Non-interest income		20,658		7,115		27,773
Non-interest expense		70,275		4,157		74,432
Income before provision for income taxes		46,237		2,958		49,195
Provision for income taxes		8,237		621		8,858
Net income	$	38,000	$	2,337	$	40,337

Total non-fiduciary assets of the trust and investment services segment were $3.8 million (including $2.2 million of trust customer intangibles) and $4.1 million (including $2.4 million of trust customer intangibles) at March 31, 2020 and 2019, respectively. All other assets, including goodwill and the remainder of other intangible assets, were allocated to the Community Banking segment.