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Investor Relation - Press Release

Investor Relation

Press Release

WesBanco Announces Third Quarter 2019 Financial Results

Company Release - 10/23/2019 4:15 PM ET

WHEELING, W.Va., Oct. 23, 2019 /PRNewswire/ -- WesBanco, Inc. ("WesBanco") (Nasdaq: WSBC), a diversified, multi-state bank holding company, today announced net income and related earnings per share for the three and nine months ended September 30, 2019.  Net income for the three months ended September 30, 2019 was $37.3 million, with diluted earnings per share of $0.68, compared to $32.5 million and $0.64 per diluted share, respectively, for the third quarter of 2018.  For the nine months ended September 30, 2019, net income was $122.5 million, or $2.24 per diluted share, compared to $99.2 million, or $2.11 per diluted share, for the 2018 period.  Net income excluding after-tax merger-related expenses for the three months ended September 30, 2019, decreased 5.7 % year-over-year to $38.7 million, or $0.71 per diluted share as compared to $0.81 per diluted share in the prior year quarter, a decrease of 12.3% (non-GAAP measures).  On the same basis, net income for the nine months ended September 30, 2019 increased 12.6% year-over-year to $126.3 million, or $2.31 per diluted share, down 2.9% when compared to $2.38 per diluted share in the prior year period (non-GAAP measures).

WesBanco Logo (PRNewsfoto/WesBanco, Inc.)



For the Three Months Ended September 30,


For the Nine Months Ended September 30,



2019


2018


2019


2018

(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 (Non-GAAP)(1)


$      38,681


$       0.71


$      41,027


$       0.81


$    126,349


$       2.31


$    112,194


$       2.38

Less: After tax merger-related expenses


(1,334)


(0.03)


(8,541)


(0.17)


(3,852)


(0.07)


(13,010)


(0.27)

Net income (GAAP)


$      37,347


$       0.68


$      32,486


$       0.64


$    122,497


$       2.24


$      99,184


$       2.11

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

On April 5, 2018, WesBanco consummated the merger with First Sentry Bancshares, Inc. ("FTSB"), a bank holding company headquartered in Huntington, WV with $0.7 billion in assets, excluding goodwill.  In addition, on August 20, 2018, WesBanco consummated the merger with Farmers Capital Bank Corporation ("FFKT"), a bank holding company headquartered in Frankfort, KY with approximately $1.6 billion in assets, excluding goodwill.  Financial results for both FTSB and FFKT have been included in WesBanco's results from their respective merger consummation dates.

Financial and operational highlights:

  • The limitation on interchange fees for debit card processing that resulted from the Durbin amendment to the 2010 Dodd-Frank Act, which took effect this quarter
    • This limitation, which only applies to banks with more than $10 billion in total assets, reduced third quarter after-tax earnings by $1.6 million, or $0.03 per diluted share
  • Continued expense management demonstrated by a year-to-date efficiency ratio of 56.09% (non-GAAP measure)
  • Key credit quality metrics such as non-performing assets, past due loans, allowance for loan loss ratios, and net loan charge-offs continue to remain at, or near, historically low levels
    • The increase in criticized and classified loans primarily reflects recent adjustments to our internal loan classification system which impacted risk grades
  • Total year-over-year organic growth in non-interest bearing demand deposits of 2.7% primarily driven by our legacy footprint
  • The pending merger with Old Line Bancshares, Inc. ("OLBK") continues to progress, and the transaction is now on track to be completed during the fourth quarter of 2019, pending additional regulatory and shareholder approvals
    • Approval received from the West Virginia Department of Financial Institutions
    • The shareholder meetings of both companies are scheduled for October 29th

"WesBanco's underlying, core performance during the third quarter of 2019, which was supported by our key long-term differentiators, continued to perform well and within our expectations," said Todd F. Clossin, President and Chief Executive Officer of WesBanco.  "During the quarter, we experienced a flat, and, at times, inverted, yield curve; multiple Federal Reserve interest rate cuts; a revived pick-up in commercial real estate projects going to the secondary market earlier than expected due to the current rate environment; and the mandatory limitation on interchange fees for banks with more than $10 billion in total assets.  Despite these challenges, we are encouraged by the continued supportive strength of our distinct, long-term strategies and unique advantages."

Mr. Clossin added, "We are benefiting from our deposit-rich legacy footprint, which provides funding for company-wide loan growth as we allow higher-cost certificates of deposit to mature.  We believe we are continuing to see strength across a number of our lending categories, including a 21% year-over-year increase in total gross production during the third quarter, and commercial loan pipelines, as of September 30th, exceeding $600 million for the first time.  In fact, our commercial and industrial, residential mortgage, and consumer loan categories generated growth on both a year-over-year as well as sequential quarter basis.  In addition, we are maintaining a critical focus on expense management and credit quality – two historical hallmarks of our institution.  We continue to believe we are well-positioned for long-term success, and remain positive about our opportunities."

Balance Sheet
Portfolio loans of $7.8 billion as of September 30, 2019 increased 0.4% when compared to the prior year period, and 1.0% annualized when compared to the second quarter of 2019.  This low-single digit loan growth was driven by growth across commercial and industrial, residential real estate, and consumer loan categories.  Total deposits decreased 3.1% year-over-year to $8.7 billion due to allowing certain higher-priced certificates of deposit to mature, particularly from prior acquisitions.  Excluding CDs, total deposits of $4.6 billion were about the same as compared to the prior year period, while non-interest bearing demand deposits grew 2.7% over the same time period.

Credit Quality
Overall, we believe our credit quality ratios remained strong as we balanced disciplined loan origination in the current environment with our prudent lending standards.  As of September 30, 2019, both non-performing loans and non-performing assets as percentages of the portfolio and total assets have remained relatively low and consistent throughout the last five quarters.  Criticized and classified loan balances increased to $174.0 million, or 2.24% of total portfolio loans, due to recent adjustments to our internal loan classification system which impacted risk grades.  The provision for credit losses increased to $4.1 million at quarter-end, of which $2.1 million was due to certain borrower downgrades to criticized and classified categories from the change in the internal loan classification system as noted above.  Annualized net loan charge-offs to average loans remained low for the quarter and year-to-date periods at four and five basis points, respectively.

Net Interest Margin and Income
The net interest margin of 3.56% for the third quarter of 2019 increased 6 basis points year-over-year but decreased sequentially by 11 basis points.  Year-over-year, the net interest margin benefited from increases in the Federal Reserve Board's target federal funds rate during 2018 and the higher margin on the acquired FFKT net assets, partially offset by higher funding costs as well as a flattening of the yield curve.  On a sequential quarter basis, the net interest margin decrease was due roughly one-half from the expected decrease in accretion from purchase accounting and one-half from the two recent 25 basis point decreases in the Federal Reserve Board's target federal funds rate, combined with the continued partially inverted and very low yield curve.  Accretion from acquisitions benefited the third quarter net interest margin by 13 basis points, as compared to 11 basis points in the prior year period and 18 basis points in the second quarter.  Year-to-date accretion was 17 basis points, as compared to 10 basis points in the prior year. Both the first and second quarters of 2019 benefitted by 3 basis points related to impaired loan payoffs from prior acquisitions, or 2 basis points year-to-date.

Net interest income increased $6.2 million, or 6.9%, during the third quarter of 2019, as compared to the same quarter of 2018, due to a 4.2% increase in average total earning assets, primarily driven by the FFKT acquisition and related accretion from purchase accounting, as well as the overall higher net interest margin.  For the nine months ended September 30, 2019, net interest income increased $47.5 million, or 19.3%, due to higher average total earning assets and an overall higher net interest margin, as discussed for the three-month period comparison.

Non-Interest Income
For the third quarter of 2019, non-interest income of $27.0 million increased $0.7 million, or 2.8%, from the third quarter of 2018.  Mortgage banking fees increased $1.1 million, or 70.2%, compared to the prior year period due to growth in residential mortgage origination dollar volume and the associated sale of approximately one-half of those originations into the secondary market.  Service charges on deposits increased $0.7 million, or 11.8%, year-over-year due to the increased customer base from the FFKT acquisition.  Other income decreased $0.6 million, primarily due to the negative mark-to-market of existing commercial customer loan swaps, as well as lower deferred compensation-related gains, partially offset by an increase in payment processing fee income.  This quarter reflects the beginning of the on-going limitation on interchange fees for debit card processing that resulted from the Durbin amendment to the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act.  This limitation, which applies to banks with more than $10 billion in total assets, reduced electronic banking fees by approximately $1.9 million as compared to the prior year period.  In addition, because WesBanco recognizes electronic banking fees on a one-month lag, this reduction represents only two months for this initial quarter of applicability.

For the nine months ended September 30, 2019, non-interest income increased $12.2 million, or 16.5%, year-over-year to $85.9 million. In addition to the items discussed above, the primary drivers of this increase were the larger customer deposit base and higher transaction volumes associated with the FTSB and FFKT acquisitions which resulted in the year-over-year increases in electronic banking fees and service charges on deposits, while the addition of the trust business from FFKT benefited trust fees. 

Non-Interest Expense
We believe that total operating expenses continued to be well-controlled during both the three- and nine-month periods ending September 30, 2019, as demonstrated by the efficiency ratio of 57.57% and 56.09%, respectively.  Excluding merger-related expenses, non-interest expense for the three months ended September 30, 2019 increased $6.3 million, or 9.6%, to $71.6 million compared to the prior year period, reflecting the FFKT acquisition in the middle of last year's third quarter.  This year-over-year increase is primarily due to higher salaries and wages, employee benefits, net occupancy, equipment, and other operating costs associated with additional staffing and financial center locations from the acquisition, as well as intangibles amortization.  In addition, salaries and wages reflects annual merit increases and higher average staff during the third quarter related to the FFKT acquisition.  During September 2019, the banking industry was officially notified by the FDIC that its deposit insurance fund ("DIF") reached the required minimum reserve ratio of 1.38% that permitted the FDIC to offset current bank assessments with prior credits from 2016 through 2018 earned by banks with less than $10 billion in assets during that time period.  This allowed WesBanco to record a credit of $2.4 million, from the total $3.1 million assessment credit that WesBanco Bank was notified it would receive, covering the FDIC insurance expense otherwise assessable for the second and third quarters of $1.2 million per quarter.  The remaining credit of approximately $0.7 million is anticipated to be recorded during the fourth quarter. 

For the nine months ended September 30, 2019, non-interest expense net of merger-related expenses increased $37.0 million, or 20.8%, to $214.8 million compared to the prior year period, reflecting the acquisitions of FTSB and FFKT and similar factors noted above for the quarterly period.

Capital
WesBanco continues to maintain what we believe are strong regulatory capital ratios as both consolidated and bank-level regulatory capital ratios are well above the applicable "well-capitalized" standards promulgated by bank regulators and the BASEL III capital standards.  At September 30, 2019, Tier I leverage was 11.30%, Tier I Risk-Based capital was 15.40%, Total Risk-Based capital was 16.36%, and the Common Equity Tier 1 capital ratio ("CET 1") was 13.87%.  Tangible common equity, increased to 10.24% at period-end from 8.66% as of September 30, 2018, as an increase in other comprehensive income from the mark-to-market of the available-for-sale portion of the investment portfolio benefitted this ratio.

Conference Call and Webcast
WesBanco will host a conference call to discuss the Company's financial results for the third quarter of 2019 at 2:00 p.m. ET on Thursday, October 24, 2019.  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 10126803.  The replay will begin at approximately 4:00 p.m. ET on October 24, and end at 12 a.m. ET on November 7.  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, 2018 and documents subsequently filed by WesBanco with the Securities and Exchange Commission ("SEC"), including WesBanco's Form 10-Q's for the quarters ended March 31 and June 30, 2019, 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, that the proposed merger with Old Line Bancshares, Inc. ("Old Line") may not close when expected, that the businesses of WesBanco and Old Line may not be integrated successfully or such integration may take longer to accomplish than expected; the expected cost savings and any revenue synergies from the merger of WesBanco and Old Line may not be fully realized within the expected timeframes; disruption from the merger of WesBanco and Old Line may make it more difficult to maintain relationships with clients, associates, or suppliers; 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 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.

Additional Information About the Merger and Where to Find It
On July 23, 2019, WesBanco and WesBanco Bank, Inc. ("WesBanco Bank") entered into an Agreement and Plan of Merger with Old Line and Old Line Bank, Inc. ("Old Line Bank"), pursuant to which Old Line will be merged with and into WesBanco, with WesBanco being the surviving company (the "Merger"), and Old Line Bank will be merged with and into WesBanco Bank, with WesBanco Bank the surviving bank. In connection with the proposed Merger, WesBanco filed with the Securities and Exchange Commission ("SEC") a Registration Statement on Form S-4, which was declared effective on September 23, 2019, that includes a Proxy Statement of Old Line and WesBanco and a Prospectus of WesBanco, as well as other relevant documents concerning the proposed transaction. SHAREHOLDERS OF WESBANCO, STOCKHOLDERS OF OLD LINE AND OTHER INTERESTED PARTIES ARE URGED TO READ THE REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS REGARDING THE MERGER AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. The Proxy Statement/Prospectus dated September 23, 2019 was mailed to shareholders of WesBanco and stockholders of Old Line on or around September 26, 2019. The Old Line stockholders meeting and the WesBanco shareholders meeting are both scheduled for October 29, 2019. In addition, the Registration Statement on Form S-4, which includes the Proxy Statements/Prospectus, and other related documents filed by WesBanco with the SEC, may be obtained for free at the SEC's website at http://www.sec.gov, and from either WesBanco's or Old Line's website at http://www.wesbanco.com or http://www.oldlinebank.com, respectively.

Participants in the Solicitation
WesBanco and Old Line and their respective executive officers and directors may be deemed to be participants in the solicitation of proxies from the shareholders of WesBanco and the stockholders of Old Line in connection with the proposed Merger. Information about the directors and executive officers of WesBanco is set forth in the proxy statement for WesBanco's 2019 annual meeting of shareholders, as filed with the SEC on March 13, 2019 and as supplemented on April 5, 2019.  Information about the directors and executive officers of Old Line is set forth in the proxy statement for Old Line's 2019 annual meeting of stockholders, as filed with the SEC on April 26, 2019.  Information about any other persons who may, under the rules of the SEC, be considered participants in the solicitation of WesBanco shareholders or Old Line stockholders in connection with the proposed Merger is included in the Proxy Statement/Prospectus. You can obtain free copies of these documents from the SEC, WesBanco or Old Line using the website information above.  This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

WESBANCO SHAREHOLDERS AND OLD LINE STOCKHOLDERS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS CAREFULLY BEFORE MAKING ANY VOTING OR INVESTMENT DECISIONS WITH RESPECT TO THE PROPOSED MERGER.

About WesBanco, Inc.
Founded in 1870, WesBanco, Inc. (www.wesbanco.com) is a multi-state, bank holding company with total assets of approximately $12.6 billion (as of September 30, 2019).  WesBanco is a diversified and well-balanced financial services institution, with a community bank at its core, built upon a strong legacy of credit and risk management.  WesBanco has meaningful market share across its key geographies maintained by its commitment to dedicated customer service and solid fee-based businesses. It also provides wealth management services through a century-old trust and wealth management business, with approximately $4.4 billion of assets under management (as of September 30, 2019), and serves as registered investment advisor to a proprietary mutual fund family, the WesMark Funds.  WesBanco's banking subsidiary, WesBanco Bank, Inc., operates 199 financial centers in the states of Indiana, Kentucky, Ohio, Pennsylvania, and West Virginia.  In addition, WesBanco operates an insurance agency, WesBanco Insurance Services, Inc., and a full service broker/dealer, WesBanco Securities, Inc.

 
















WESBANCO, INC.












Consolidated Selected Financial Highlights











Page 5

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































For the Three Months Ended


For the Nine Months Ended

STATEMENT OF INCOME

September 30,


September 30,

Interest and dividend income

2019


2018


% Change


2019


2018


% Change


Loans, including fees

$             95,369


$               86,605


10.1


$          287,287


$             234,276


22.6


Interest and dividends on securities:














Taxable 

15,887


14,964


6.2


49,061


40,702


20.5



Tax-exempt

4,759


5,326


(10.6)


15,443


15,216


1.5




Total interest and dividends on securities

20,646


20,290


1.8


64,504


55,918


15.4


Other interest income 

1,333


1,498


(11.0)


4,153


3,402


22.1

          Total interest and dividend income

117,348


108,393


8.3


355,944


293,596


21.2

Interest expense













Interest bearing demand deposits

4,489


3,501


28.2


12,749


9,174


39.0


Money market deposits

1,973


1,360


45.1


5,881


3,332


76.5


Savings deposits

861


352


144.6


2,061


768


168.4


Certificates of deposit

3,830


3,276


16.9


11,831


8,789


34.6




Total interest expense on deposits

11,153


8,489


31.4


32,522


22,063


47.4


Federal Home Loan Bank borrowings

6,645


6,691


(0.7)


19,269


17,142


12.4


Other short-term borrowings

1,353


965


40.2


4,392


2,497


75.9


Subordinated debt and junior subordinated debt 

2,077


2,315


(10.3)


6,820


6,425


6.1




Total interest expense

21,228


18,460


15.0


63,003


48,127


30.9

Net interest income 

96,120


89,933


6.9


292,941


245,469


19.3


Provision for credit losses

4,121


1,035


298.2


9,375


4,911


90.9

Net interest income after provision for credit losses

91,999


88,898


3.5


283,566


240,558


17.9

Non-interest income













Trust fees

6,425


6,265


2.6


19,880


18,520


7.3


Service charges on deposits

7,056


6,313


11.8


19,803


16,282


21.6


Electronic banking fees

5,253


6,139


(14.4)


18,299


16,697


9.6


Net securities brokerage revenue

1,765


1,836


(3.9)


5,597


5,315


5.3


Bank-owned life insurance

1,373


1,232


11.4


4,032


5,116


(21.2)


Mortgage banking income

2,588


1,521


70.2


5,262


4,297


22.5


Net securities gains

235


84


179.8


3,800


403


842.9


Net gain on other real estate owned and other assets

158


150


5.3


670


641


4.5


Other income

2,097


2,684


(21.9)


8,535


6,444


32.4




Total non-interest income

26,950


26,224


2.8


85,878


73,715


16.5

Non-interest expense













Salaries and wages

32,915


30,335


8.5


95,501


82,213


16.2


Employee benefits

9,726


7,905


23.0


29,419


22,782


29.1


Net occupancy

5,392


4,957


8.8


16,343


13,715


19.2


Equipment 

5,273


4,488


17.5


14,924


12,532


19.1


Marketing

1,505


1,446


4.1


4,002


3,967


0.9


FDIC insurance 

(1,221)


789


(254.8)


1,287


2,315


(44.4)


Amortization of intangible assets

2,446


1,821


34.3


7,424


4,218


76.0


Restructuring and merger-related expense

1,688


10,811


(84.4)


4,876


16,468


(70.4)


Other operating expenses  

15,544


13,568


14.6


45,876


36,024


27.3




Total non-interest expense

73,268


76,120


(3.7)


219,652


194,234


13.1

Income before provision for income taxes

45,681


39,002


17.1


149,792


120,039


24.8


Provision for income taxes 

8,334


6,516


27.9


27,295


20,855


30.9

Net Income

$             37,347


$               32,486


15.0


$          122,497


$               99,184


23.5
















Taxable equivalent net interest income

$            97,385


$            91,348


6.6


$          297,046


$          249,514


19.0
















Per common share data












Net income per common share - basic

$                 0.68


$                   0.65


4.6


$                 2.24


$                   2.11


6.2

Net income per common share - diluted

0.68


0.64


6.3


2.24


2.11


6.2

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

0.71


0.81


(12.3)


2.31


2.38


(2.9)

Dividends declared

0.31


0.29


6.9


0.93


0.87


6.9

Book value (period end)

38.42


35.30


8.8


38.42


35.30


8.8

Tangible book value (period end) (1)

21.89


18.54


18.1


21.89


18.54


18.1

Average common shares outstanding - basic

54,695,578


50,277,847


8.8


54,641,057


46,965,095


16.3

Average common shares outstanding - diluted

54,751,344


50,432,112


8.6


54,705,761


47,107,829


16.1

Period end common shares outstanding

54,691,225


54,603,967


0.2


54,691,225


54,603,967


0.2
















(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 merger-related expenses.







 

 

WESBANCO, INC.

















Consolidated Selected Financial Highlights














Page 6

(unaudited, dollars in thousands)


































Selected ratios
























For the Nine Months Ended









September 30,










2019


2018


% Change


























Return on average assets





1.31

%

1.21

%

8.26

%







Return on average assets, excluding
















    after-tax merger-related expenses




1.35


1.37


(1.46)








Return on average equity





7.99


8.59


(6.98)








Return on average equity, excluding
















    after-tax merger-related expenses




8.24


9.71


(15.14)








Return on average tangible equity (1)




14.97


15.71


(4.71)








Return on average tangible equity, excluding 
















    after-tax merger-related expenses




15.42


17.70


(12.88)








Yield on earning assets (2) 





4.41


4.11


7.30








Cost of interest bearing liabilities




1.07


0.89


20.22








Net interest spread (2)





3.34


3.22


3.73








Net interest margin (2)





3.64


3.44


5.81








Efficiency (1) (2)






56.09


55.00


1.98








Average loans to average deposits




87.77


88.25


(0.54)








Annualized net loan charge-offs/average loans




0.05


0.02


150.00








Effective income tax rate 





18.22


17.37


4.89






















































































For the Quarter Ended










Sept. 30,


June 30,


Mar. 31,


Dec. 31,


Sept. 30,










2019


2019


2019


2018


2018






















Return on average assets





1.19

%

1.44

%

1.31

%

1.39

%

1.10

%



Return on average assets, excluding
















    after-tax merger-related expenses




1.23


1.44


1.39


1.42


1.39




Return on average equity





7.06


8.77


8.17


8.94


7.50




Return on average equity, excluding
















    after-tax merger-related expenses




7.32


8.78


8.67


9.16


9.47




Return on average tangible equity (1)




13.06


16.35


15.65


17.67


14.25




Return on average tangible equity, excluding 
















    after-tax merger-related expenses




13.50


16.38


16.56


18.09


17.85




Yield on earning assets (2) 





4.34


4.45


4.45


4.42


4.21




Cost of interest bearing liabilities




1.09


1.08


1.06


0.97


0.95




Net interest spread (2)





3.25


3.37


3.39


3.45


3.26




Net interest margin (2)





3.56


3.67


3.68


3.72


3.50




Efficiency (1) (2) 






57.57


54.87


55.89


53.62


55.55




Average loans to average deposits




88.96


87.35


87.01


85.94


87.56




Annualized net loan charge-offs (recoveries)/average loans



0.04


0.05


0.07


0.14


(0.02)




Effective income tax rate 





18.24


18.40


18.01


19.37


16.71




Trust assets, market value at period end




$     4,443,430


$        4,544,103


$        4,514,013


$        4,269,961


$        4,743,894






















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










(2) The yield on earning assets, net interest margin, net interest spread and efficiency ratios are presented on a fully 








    taxable-equivalent (FTE) and annualized basis. The FTE basis adjusts for the tax benefit of income on certain tax-exempt 








   loans and investments.   WesBanco believes this measure to be the preferred industry measurement of net interest income and







   provides a relevant comparison between taxable and non-taxable amounts.












 

 










WESBANCO, INC.









Consolidated Selected Financial Highlights








Page 7

(unaudited, dollars in thousands, except shares)








% Change

Balance sheets


September 30,



December 31,

December 31, 2018

Assets


2019


2018


% Change

2018

to September 30, 2019

Cash and due from banks


$           209,606


$        184,826


13.4

$              124,650

68.2

Due from banks - interest bearing


34,727


88,854


(60.9)

44,536

(22.0)

Securities:









     Equity securities, at fair value


11,644


12,784


(8.9)

11,737

(0.8)

     Available-for-sale debt securities, at fair value


2,209,199


2,008,232


10.0

2,114,129

4.5

     Held-to-maturity debt securities (fair values of $877,809; $1,014,361 









     and $1,020,743, respectively)


852,824


1,025,538


(16.8)

1,020,934

(16.5)

          Total securities


3,073,667


3,046,554


0.9

3,146,800

(2.3)

Loans held for sale


20,715


55,913


(63.0)

8,994

130.3

Portfolio loans:









     Commercial real estate


3,854,653


3,906,221


(1.3)

3,853,695

0.0

     Commercial and industrial


1,332,275


1,292,073


3.1

1,265,460

5.3

     Residential real estate 


1,638,574


1,598,477


2.5

1,611,607

1.7

     Home equity


587,745


604,106


(2.7)

599,331

(1.9)

     Consumer 


343,505


325,546


5.5

326,188

5.3

Total portfolio loans, net of unearned income


7,756,752


7,726,423


0.4

7,656,281

1.3

Allowance for loan losses


(54,317)


(48,902)


(11.1)

(48,948)

(11.0)

          Net portfolio loans


7,702,435


7,677,521


0.3

7,607,333

1.3

Premises and equipment, net


178,344


159,284


12.0

166,925

6.8

Accrued interest receivable


37,156


39,465


(5.9)

38,853

(4.4)

Goodwill and other intangible assets, net


914,705


928,083


(1.4)

918,850

(0.5)

Bank-owned life insurance


229,349


223,995


2.4

225,317

1.8

Other assets


193,183


194,984


(0.9)

176,374

9.5

Total Assets


$    12,593,887


$ 12,599,479


(0.0)

$       12,458,632

1.1










Liabilities









Deposits:









     Non-interest bearing demand


$        2,476,392


$      2,411,862


2.7

$           2,441,041

1.4

     Interest bearing demand


2,128,581


2,187,662


(2.7)

2,146,508

(0.8)

     Money market


1,085,732


1,178,950


(7.9)

1,142,925

(5.0)

     Savings deposits


1,698,125


1,649,684


2.9

1,645,549

3.2

     Certificates of deposit


1,275,533


1,513,600


(15.7)

1,455,610

(12.4)

          Total deposits


8,664,363


8,941,758


(3.1)

8,831,633

(1.9)

Federal Home Loan Bank borrowings


1,161,092


1,131,253


2.6

1,054,174

10.1

Other short-term borrowings


325,247


294,281


10.5

290,522

12.0

Subordinated debt and junior subordinated debt 


156,632


189,745


(17.5)

189,842

(17.5)

          Total borrowings


1,642,971


1,615,279


1.7

1,534,538

7.1

Accrued interest payable


5,273


6,623


(20.4)

4,627

14.0

Other liabilities


180,011


108,550


65.8

109,007

65.1

Total Liabilities


10,492,618


10,672,210


(1.7)

10,479,805

0.1










Shareholders' Equity









Preferred stock, no par value; 1,000,000 shares authorized; 









     none outstanding


-


-


-

-

-

Common stock, $2.0833 par value; 100,000,000 shares authorized in









          2019 and 2018, respectively; 54,698,250,  54,604,294 and 54,604,294 shares









     issued, respectively; 54,691,225, 54,603,967 and 54,598,134 shares


113,954


113,758


0.2

113,758

0.2

     outstanding, respectively









Capital surplus


1,169,595


1,165,006


0.4

1,166,701

0.2

Retained earnings


809,332


709,477


14.1

737,581

9.7

Treasury stock ( 7,025, 327 and 6,160 shares - at cost, respectively)


(252)


(15)


(1,580.0)

(274)

8.0

Accumulated other comprehensive income (loss)


9,922


(59,873)


116.6

(37,871)

126.2

Deferred benefits for directors


(1,282)


(1,084)


(18.3)

(1,068)

(20.0)

Total Shareholders' Equity


2,101,269


1,927,269


9.0

1,978,827

6.2

Total Liabilities and Shareholders' Equity


$    12,593,887


$ 12,599,479


(0.0)

$       12,458,632

1.1

 

 

WESBANCO, INC.

Consolidated Selected Financial Highlights




Page 8

(unaudited, dollars in thousands, except shares)





Balance sheets

September 30,


June 30,


Assets

2019


2019

% Change

Cash and due from banks

$        209,606


$       157,965

32.7

Due from banks - interest bearing

34,727


36,390

(4.6)

Securities:





          Equity securities, at fair value

11,644


11,817

(1.5)

          Available-for-sale, at fair value

2,209,199


2,129,284

3.8

          Held-to-maturity (fair values of $877,809 and 921,534, respectively)

852,824


900,605

(5.3)

               Total securities

3,073,667


3,041,706

1.1

Loans held for sale

20,715


18,649

11.1

Portfolio Loans:





          Commercial real estate

3,854,653


3,877,633

(0.6)

          Commercial and industrial

1,332,275


1,300,577

2.4

          Residential real estate 

1,638,574


1,633,613

0.3

          Home equity

587,745


590,303

(0.4)

          Consumer 

343,505


335,728

2.3

Total portfolio loans, net of unearned income

7,756,752


7,737,854

0.2

Allowance for loan losses

(54,317)


(50,859)

(6.8)

               Net portfolio loans

7,702,435


7,686,995

0.2

Premises and equipment, net

178,344


179,866

(0.8)

Accrued interest receivable

37,156


38,450

(3.4)

Goodwill and other intangible assets, net

914,705


914,678

0.0

Bank-owned life insurance

229,349


227,976

0.6

Other assets

193,183


191,978

0.6

Total Assets

$ 12,593,887


$12,494,653

0.8






Liabilities





Deposits:





          Non-interest bearing demand

$     2,476,392


$     2,481,065

(0.2)

          Interest bearing demand

2,128,581


2,079,795

2.3

          Money market

1,085,732


1,098,917

(1.2)

          Savings deposits

1,698,125


1,670,035

1.7

          Certificates of deposit

1,275,533


1,365,116

(6.6)

               Total deposits

8,664,363


8,694,928

(0.4)

Federal Home Loan Bank borrowings

1,161,092


1,121,283

3.6

Other short-term borrowings

325,247


296,148

9.8

Subordinated debt and junior subordinated debt 

156,632


156,534

0.1

               Total borrowings

1,642,971


1,573,965

4.4

Accrued interest payable

5,273


6,559

(19.6)

Other liabilities

180,011


145,085

24.1

Total liabilities

10,492,618


10,420,537

0.7






Shareholders' Equity





Preferred stock, no par value; 1,000,000 shares authorized; 





          none outstanding

-


-

-

Common stock, $2.0833 par value; 100,000,000 shares authorized;





          54,698,250 and 54,697,251 shares issued, respectively;





          54,691,225 and 54,697,199 shares outstanding, respectively

113,954


113,952

0.0

Capital surplus

1,169,595


1,168,212

0.1

Retained earnings

809,332


788,900

2.6

Treasury stock (7,025 and 52 shares - at cost, respectively)

(252)


(2)

(12497.0)

Accumulated other comprehensive income (loss)

9,922


4,113

(141.2)

Deferred benefits for directors

(1,282)


(1,059)

21.1

Total Shareholders' Equity

2,101,269


2,074,116

1.3

Total Liabilities and Shareholders' Equity

$ 12,593,887


$12,494,653

0.8

 

 

WESBANCO, INC.




















Consolidated Selected Financial Highlights















Page 9



(unaudited, dollars in thousands)



















Average balance sheet and




















net interest margin analysis




Three Months Ended September 30,




Nine Months Ended September 30,









2019

2018



2019

2018








Average 

Average



Average 

Average



Average 

Average



Average 

Average



Assets





Balance

Rate



Balance

Rate



Balance

Rate



Balance

Rate



Due from banks - interest bearing



$            71,163

2.41

%


$            94,337

2.29

%


$                 73,617

2.50

%


$           50,686

2.28

%


Loans, net of unearned income (1)



7,751,724

4.88



7,227,835

4.75



7,704,212

4.99



6,787,565

4.61



Securities: (2)





















    Taxable





2,301,933

2.76



2,194,708

2.73



2,330,439

2.81



2,038,978

2.66



    Tax-exempt (3)





684,164

3.52



785,699

3.43



744,949

3.50



751,403

3.42



        Total securities





2,986,097

2.93



2,980,407

2.91



3,075,388

2.97



2,790,381

2.87



Other earning assets 





53,181

6.80



60,783

6.26



51,954

7.12



56,182

6.02



         Total earning assets (3)



10,862,165

4.34

%


10,363,362

4.21

%


10,905,171

4.41

%


9,684,814

4.11

%


Other assets





1,625,988




1,375,434




1,590,847




1,238,728




Total Assets





$   12,488,153




$   11,738,796




$        12,496,018




$  10,923,542

























Liabilities and Shareholders' Equity



















Interest bearing demand deposits



$        2,126,720

0.84

%


$        1,983,340

0.70

%


$            2,131,887

0.80

%


$      1,844,423

0.67

%


Money market accounts 




1,097,930

0.71



1,111,341

0.49



1,122,665

0.70



1,051,104

0.42



Savings deposits





1,686,267

0.20



1,511,075

0.09



1,674,262

0.16



1,389,613

0.07



Certificates of deposit




1,321,696

1.15



1,439,658

0.90



1,385,349

1.14



1,366,109

0.86



    Total interest bearing deposits



6,232,613

0.71



6,045,414

0.56



6,314,163

0.69



5,651,249

0.52



Federal Home Loan Bank borrowings



1,048,401

2.51



1,194,940

2.22



1,036,464

2.49



1,138,350

2.01



Other borrowings





317,931

1.69



269,342

1.42



321,976

1.82



249,030

1.34



Subordinated debt and junior subordinated debt 



156,561

5.26



180,074

5.10



169,944

5.37



172,518

4.98



      Total interest bearing liabilities 



7,755,506

1.09

%


7,689,770

0.95

%


7,842,547

1.07

%


7,211,147

0.89

%


Non-interest bearing demand deposits



2,481,384




2,209,235




2,463,076




2,040,292




Other liabilities





153,729




120,302




139,761




127,699




Shareholders' equity





2,097,534




1,719,489




2,050,634




1,544,404




Total Liabilities and Shareholders' Equity



$   12,488,153




$   11,738,796




$        12,496,018




$  10,923,542




Taxable equivalent net interest spread




3.25

%



3.26

%



3.34

%



3.22

%


Taxable equivalent net interest margin 




3.56

%



3.50

%



3.64

%



3.44

%












































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 are $0.4 million and $0.8 million for the three months ended September 30, 2019 and 2018 and $1.3 million and $2.1 million for

   the nine months ended September 30, 2019 and 2018, respectively.









Additionally, loan accretion included in interest income on loans acquired from prior acquisitions was $3.4 million and $2.4 million for the three months ended September 30, 2019 and 2018 , respectively,   

   and $13.0 million and $5.9 million  for the nine months ended September 30, 2019 and 2018, respectively.








Accretion on interest bearing liabilities acquired from the prior acquisitions was $0.3 million and $0.6 million for the three months ended September 30, 2019 and 2018, respectively, 

   and $0.9 million and $1.5 million  for the nine months ended September 30, 2019 and 2018, 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.






 

 

WESBANCO, INC.










Consolidated Selected Financial Highlights









 Page 10

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














Quarter Ended

Statement of Income

Sept.  30,


June 30,


Mar. 31,


Dec. 31,


Sept.  30,

Interest and dividend income

2019


2019


2019


2018


2018


Loans, including fees

$                        95,369


$                96,415


$              95,502


$                97,685


$              86,605


Interest and dividends on securities:












Taxable 

15,887


16,444


16,733


16,196


14,964



Tax-exempt

4,759


5,142


5,541


5,562


5,326




Total interest and dividends on securities

20,646


21,586


22,274


21,758


20,290


Other interest income 

1,333


1,542


1,277


1,944


1,498

          Total interest and dividend income

117,348


119,543


119,053


121,387


108,393

Interest expense











Interest bearing demand deposits

4,489


4,314


3,946


4,000


3,501


Money market deposits

1,973


2,009


1,899


1,683


1,360


Savings deposits

861


678


522


452


352


Certificates of deposit

3,830


4,098


3,903


3,662


3,276




Total interest expense on deposits

11,153


11,099


10,270


9,797


8,489


Federal Home Loan Bank borrowings

6,645


6,287


6,337


6,191


6,691


Other short-term borrowings

1,353


1,483


1,556


1,221


965


Subordinated debt and junior subordinated debt

2,077


2,214


2,529


2,411


2,315




Total interest expense

21,228


21,083


20,692


19,620


18,460

Net interest income 

96,120


98,460


98,361


101,767


89,933


Provision for credit losses

4,121


2,747


2,507


2,854


1,035

Net interest income after provision for credit losses

91,999


95,713


95,854


98,913


88,898

Non-interest income











Trust fees

6,425


6,339


7,115


6,103


6,265


Service charges on deposits

7,056


6,197


6,549


7,387


6,313


Electronic banking fees

5,253


7,154


5,892


6,604


6,139


Net securities brokerage revenue

1,765


1,973


1,860


1,871


1,836


Bank-owned life insurance

1,373


1,340


1,319


1,312


1,232


Mortgage banking income

2,588


1,618


1,056


1,543


1,521


Net securities gains/(losses)

235


2,909


657


(1,303)


84


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

158


376


136


(117)


150


Other income

2,097


3,250


3,189


3,161


2,684




Total non-interest income

26,950


31,156


27,773


26,561


26,224

Non-interest expense











Salaries and wages

32,915


31,646


30,940


32,389


30,335


Employee benefits

9,726


9,705


9,989


7,298


7,905


Net occupancy

5,392


5,385


5,566


5,455


4,957


Equipment 

5,273


4,818


4,833


4,667


4,488


Marketing

1,505


1,254


1,243


1,402


1,446


FDIC insurance 

(1,221)


1,155


1,353


927


789


Amortization of intangible assets

2,446


2,465


2,514


2,762


1,821


Restructuring and merger-related expense

1,688


81


3,107


1,389


10,811


Other operating expenses  

15,544


15,443


14,887


14,701


13,568




Total non-interest expense

73,268


71,952


74,432


70,990


76,120

Income before provision for income taxes

45,681


54,917


49,195


54,484


39,002


Provision for income taxes 

8,334


10,103


8,858


10,556


6,516

Net Income

$                        37,347


$                44,814


$              40,337


$                43,928


$              32,486














Taxable equivalent net interest income

$                       97,385


$                99,827


$             99,834


$             103,246


$             91,348














Per common share data










Net income per common share - basic

$                            0.68


$                    0.82


$                  0.74


$                    0.80


$                  0.65

Net income per common share - diluted

0.68


0.82


0.74


0.80


0.64

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

0.71


0.82


0.78


0.82


0.81

Dividends declared

0.31


0.31


0.31


0.29


0.29

Book value (period end)

38.42


37.92


37.05


36.24


35.30

Tangible book value (period end) (1)

21.89


21.40


20.49


19.63


18.54

Average common shares outstanding - basic

54,695,578


54,628,029


54,598,499


54,598,142


50,277,847

Average common shares outstanding - diluted

54,751,344


54,773,521


54,706,337


54,706,691


50,432,112

Period end common shares outstanding

54,691,225


54,697,199


54,599,127


54,598,134


54,603,967

Full time equivalent employees

2,330


2,353


2,329


2,388


2,404



























(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 merger-related expenses.




 

 















WESBANCO, INC.












Consolidated Selected Financial Highlights









 Page 11 


(unaudited, dollars in thousands)
















Quarter Ended






Sept. 30,


June 30,


Mar. 31,


Dec. 31,


Sept. 30,


Asset quality data


2019


2019


2019


2018


2018


Non-performing assets:













Troubled debt restructurings - accruing


$           5,840


$           5,487


$           5,481


$           5,744


$           6,338



Non-accrual loans:














Troubled debt restructurings


1,345


1,924


2,936


2,855


2,036




Other non-accrual loans


33,456


30,974


27,291


27,845


29,238




    Total non-accrual loans


34,801


32,898


30,227


30,700


31,274




    Total non-performing loans 


40,641


38,385


35,708


36,444


37,612



Other real estate and repossessed assets


3,678


4,973


6,001


7,265


6,877




Total non-performing assets


$         44,319


$         43,358


$         41,709


$         43,709


$         44,489
















Past due loans (1):













Loans past due 30-89 days


$         17,906


$         15,446


$         21,433


$         19,569


$         18,016



Loans past due 90 days or more


5,425


2,634


2,740


4,077


2,451




Total past due loans


$         23,331


$         18,080


$         24,173


$         23,646


$         20,467
















Criticized and classified loans (2):













Criticized loans


$         78,880


$         73,236


$         69,691


$         51,710


$         46,370



Classified loans


95,071


41,004


39,412


31,244


31,437




Total criticized and classified loans


$       173,951


$       114,240


$       109,103


$         82,954


$         77,807
















Loans past due 30-89 days / total portfolio loans

0.23

%

0.20

%

0.28

%

0.26

%

0.23

%

Loans past due 90 days or more / total portfolio loans

0.07


0.03


0.04


0.05


0.03


Non-performing loans / total portfolio loans


0.52


0.50


0.47


0.48


0.49


Non-performing assets/total portfolio loans, other












real estate and repossessed assets


0.57


0.56


0.54


0.57


0.58


Non-performing assets / total assets


0.35


0.35


0.33


0.35


0.35


Criticized and classified loans / total portfolio loans


2.24


1.48


1.42


1.08


1.01
















Allowance for loan losses












Allowance for loan losses


$         54,317


$         50,859


$         48,866


$         48,948


$         48,902


Provision for credit losses


4,121


2,747


2,507


2,854


1,035


Net loan and deposit account overdraft charge-offs


791


947


1,370


2,750


(306)
















Annualized net loan charge-offs /average loans


0.04

%

0.05

%

0.07

%

0.14

%

(0.02)

%

Allowance for loan losses / total portfolio loans


0.70

%

0.66

%

0.64

%

0.64

%

0.63

%

Allowance for loan losses / non-performing loans


1.34

x

1.32

x

1.37

x

1.34

x

1.30

x

Allowance for loan losses / non-performing loans and












loans past due 


0.85

x

0.90

x

0.82

x

0.81

x

0.84

x

































Quarter Ended






Sept. 30,


June 30,


Mar. 31,


Dec. 31,


Sept. 30,






2019


2019


2019


2018


2018


Capital ratios












Tier I leverage capital


11.30

%

11.09

%

10.98

%

10.74

%

11.22

%

Tier I risk-based capital


15.40


15.39


15.31


15.09


14.32


Total risk-based capital


16.36


16.32


16.22


15.99


15.20


Common equity tier 1 capital ratio (CET 1)


13.87


13.83


13.48


13.14


12.41


Average shareholders' equity to average assets


16.80


16.42


16.01


15.51


14.65


Tangible equity to tangible assets (3)


10.24


10.10


9.57


9.28


8.66






























(1) Excludes non-performing loans.










(2) Commercial criticized and classified 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

Page 12

The following non-GAAP financial measures used by WesBanco provide information useful to investors in understanding WesBanco's operating performance and trends, and facilitate comparisons with the performance of WesBanco's peers. The following tables summarize the non-GAAP financial measures derived from amounts reported in WesBanco's financial statements.





Three Months Ended


Year to Date 





Sept. 30,


June 30,


Mar. 31,


Dec. 31,


Sept. 30,


Sept. 30,

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

2019


2019


2019


2018


2018


2019

2018

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














Net income (annualized)


$             148,169


$         179,748


$         163,589


$         174,280


$         128,886


$         163,778

$      132,609


Plus: after-tax merger-related expenses (annualized)  (1)

5,291


257


9,954


4,353


33,885


5,150

17,394


Net income excluding after-tax merger-related expenses (annualized)

153,460


180,005


173,543


178,633


162,771


168,928

150,003


















Average total assets


$        12,488,153


$    12,489,663


$    12,510,032


$    12,565,880


$    11,738,796


$    12,496,018

$ 10,923,542

















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

1.23%


1.44%


1.39%


1.42%


1.39%


1.35%

1.37%

















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














Net income (annualized)


$             148,169


$         179,748


$         163,589


$         174,280


$         128,886


$         163,778

$      132,609


Plus: after-tax merger-related expenses (annualized)  (1)

5,291


257


9,954


4,353


33,885


5,150

17,394


Net income excluding after-tax merger-related expenses (annualized)

153,460


180,005


173,543


178,633


162,771


168,928

150,003


















Average total shareholders' equity

2,097,534


2,050,190


2,002,710


1,949,530


1,719,489


2,050,634

1,544,404

















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

7.32%


8.78%


8.67%


9.16%


9.47%


8.24%

9.71%

















Return on average tangible equity:














Net income (annualized)


$             148,169


$         179,748


$         163,589


$         174,280


$         128,886


$         163,778

$      132,609


Plus: amortization of intangibles (annualized) (1)

7,666


7,811


8,055


8,657


5,707


7,841

4,455


Net income before amortization of intangibles (annualized)

155,835


187,559


171,644


182,937


134,593


171,619

137,064


















Average total shareholders' equity

2,097,534


2,050,190


2,002,710


1,949,530


1,719,489


2,050,634

1,544,404


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

(904,204)


(903,243)


(906,041)


(914,214)


(775,267)


(904,489)

(671,786)


Average tangible equity


$          1,193,330


$      1,146,947


$      1,096,669


$      1,035,316


$         944,222


$      1,146,145

$      872,618

















Return on average tangible equity

13.06%


16.35%


15.65%


17.67%


14.25%


14.97%

15.71%

















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














Net income (annualized)


$             148,169


$         179,748


$         163,589


$         174,280


$         128,886


$         163,778

$      132,609


Plus: after-tax merger-related expenses (annualized)  (1)

5,291


257


9,954


4,353


33,885


5,150

17,394


Plus: amortization of intangibles (annualized) (1)

7,666


7,811


8,055


8,657


5,707


7,841

4,455


Net income before amortization of intangibles and excluding 














    after-tax merger-related expenses (annualized)

161,126


187,816


181,598


187,290


168,478


176,769

154,458


















Average total shareholders' equity

2,097,534


2,050,190


2,002,710


1,949,530


1,719,489


2,050,634

1,544,404


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

(904,204)


(903,243)


(906,041)


(914,214)


(775,267)


(904,489)

(671,786)


Average tangible equity


$          1,193,330


$      1,146,947


$      1,096,669


$      1,035,316


$         944,222


$      1,146,145

$      872,618

















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

13.50%


16.38%


16.56%


18.09%


17.85%


15.42%

17.70%

















Efficiency ratio:
















Non-interest expense


$               73,268


$           71,952


$           74,432


$           70,990


$           76,120


$         219,652

$      194,234


Less: restructuring and merger-related expense

(1,688)


(81)


(3,107)


(1,389)


(10,811)


(4,876)

(16,468)


Non-interest expense excluding restructuring and merger-related expense

71,580


71,871


71,325


69,601


65,309


214,776

177,766


















Net interest income on a fully taxable equivalent basis

97,385


99,827


99,834


103,246


91,348


297,046

249,514


Non-interest income


26,950


31,156


27,773


26,561


26,224


85,878

73,715


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

$             124,335


$         130,983


$         127,607


$         129,807


$         117,572


$         382,924

$      323,229


Efficiency Ratio


57.57%


54.87%


55.89%


53.62%


55.55%


56.09%

55.00%

















Net income, excluding after-tax merger-related expenses:














Net income



$               37,347


$           44,814


$           40,337


$           43,928


$           32,486


$         122,497

$        99,184


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

1,334


64


2,454


1,097


8,541


3,852

13,010

Net income, excluding after-tax merger-related expenses

$               38,681


$           44,878


$           42,791


$           45,025


$           41,027


$         126,349

$      112,194

































Net Income, excluding after-tax merger-related expenses per diluted share:














Net income per diluted share

$                   0.68


$               0.82


$               0.74


$               0.80


$               0.64


$               2.24

$            2.11


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

0.03


0.00


0.04


0.02


0.17


0.07

0.27

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

$                   0.71


$               0.82


$               0.78


$               0.82


$               0.81


$               2.31

$            2.38





































Period End








Sept. 30,


June 30,


Mar. 31,


Dec. 31,


Sept. 30,








2019


2019


2019


2018


2018




Tangible book value per share:














Total shareholders' equity

$          2,101,269


$      2,074,116


$      2,023,139


$      1,978,827


$      1,927,269





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

(904,256)


(903,729)


(904,144)


(906,887)


(915,022)





Tangible equity


1,197,013


1,170,387


1,118,995


1,071,940


1,012,247





















Common shares outstanding

54,691,225


54,697,199


54,599,127


54,598,134


54,603,967




















Tangible book value per share


$                 21.89


$             21.40


$             20.49


$             19.63


$             18.54




















Tangible equity to tangible assets:














Total shareholders' equity

$          2,101,269


$      2,074,116


$      2,023,139


$      1,978,827


$      1,927,269





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

(904,256)


(903,729)


(904,144)


(906,887)


(915,022)





Tangible equity


1,197,013


1,170,387


1,118,995


1,071,940


1,012,247





















Total assets



12,593,887


12,494,653


12,601,408


12,458,632


12,599,479





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

(904,256)


(903,729)


(904,144)


(906,887)


(915,022)





Tangible assets


$        11,689,631


$    11,590,924


$    11,697,264


$    11,551,745


$    11,684,457




















Tangible equity to tangible assets

10.24%


10.10%


9.57%


9.28%


8.66%




































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













 

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