Press Release

WesBanco Announces Second Quarter 2020 Financial Results

Company Release - 7/22/2020 4:36 PM ET

WHEELING, W.Va., July 22, 2020 /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 six months ended June 30, 2020.  Reflecting the impact from the 2020 adoption of the new Current Expected Credit Losses ("CECL") accounting standard, net income for the three months ended June 30, 2020 was $4.5 million, with diluted earnings per share of $0.07, compared to $44.8 million and $0.82 per diluted share, respectively, for the second quarter of 2019.  For the six months ended June 30, 2020, net income was $27.9 million, or $0.41 per diluted share, compared to $85.2 million, or $1.56 per diluted share, for the 2019 period.  Net income excluding after-tax merger-related expenses for the three months ended June 30, 2020, was $4.9 million, or $0.07 per diluted share, as compared to $44.9 million and $0.82 per diluted share, respectively, in the prior year quarter (non-GAAP measures).  On the same basis, net income for the six months ended June 30, 2020 was $32.3 million, or $0.48 per diluted share, as compared to $1.60 per diluted share in the prior year period (non-GAAP measures).

(PRNewsfoto/WesBanco, Inc.)




For the Three Months Ended June 30,


For the Six Months Ended June 30,




2020


2019


2020


2019

(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)


$        4,858


$       0.07


$      44,878


$       0.82


$      32,334


$       0.48


$      87,670


$       1.60

Less: After tax merger-related expenses


(370)


(0.00)


(64)


(0.00)


(4,450)


(0.07)


(2,519)


(0.04)

Net income (GAAP)


$        4,488


$       0.07


$      44,814


$       0.82


$      27,884


$       0.41


$      85,151


$       1.56

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

On November 22, 2019, WesBanco consummated the merger with Old Line Bancshares, Inc. ("OLBK"), a bank holding company headquartered in Bowie, MD with approximately $3.0 billion in assets, excluding goodwill.  Financial results for OLBK have been included in WesBanco's results from the merger consummation date.

WesBanco believes that pre-tax, pre-provision income (non-GAAP measure) provides a more comparable year-over-year measure as it removes the impact of the new CECL accounting standard implemented earlier this year.  For the three months ended June 30, 2020, pre-tax, pre-provision income, excluding merger-related expenses, increased 15.7% year-over-year to $66.8 million.  On the same basis, pre-tax, pre-provision income, for the six months ended June 30, 2020, increased 14.5% year-over-year to $128.8 million.  WesBanco believes that these non-GAAP financial measures are useful to investors as they enhance investors' understanding of the company's business and performance.

Financial and operational highlights during the quarter ended June 30, 2020:

  • WesBanco is a well-capitalized financial institution with solid liquidity and a strong balance sheet
  • Organic loan growth was 11.3% year-over-year, driven by WesBanco's support of communities impacted by the pandemic, as well as the commercial and residential real estate loan categories
    • Loan growth includes approximately $837 million of loans funded through the Small Business Administration's Paycheck Protection Program ("SBA PPP"), as established by the CARES Act
    • Commercial and residential real estate loans increased organically 3.9% and 1.6% year-over-year, respectively
  • Organic deposit growth, excluding certificates of deposit, was 20.3% year-over-year, driven by growth in demand deposits
  • Mortgage banking income increased 365.5% year-over-year to a record $7.5 million due to strong originations and organic growth in the current low interest rate environment
  • Continued expense management demonstrated by a year-to-date efficiency ratio of 56.62% (non-GAAP measure)
    • Non-interest expenses, excluding merger-related costs, decreased $1.1 million from the first quarter driven by lower salaries and wages
  • Key credit quality metrics such as non-performing assets, past due loans, criticized & classified loans, and net loan charge-offs, as percentages of total portfolio loans, has remained at low levels and favorable to peer bank averages, those with total assets between $10 billion and $25 billion, for the four quarters prior to the current earnings period
  • The utilization of updated June macroeconomic forecasts, which have deteriorated since the end of the first quarter, resulted in increases in allowance for credit losses and provision for credit losses on both a year-over-year and quarter-over-quarter basis

"WesBanco's underlying performance during the second quarter was evidenced by the strong year-over-year growth of 15.7% in our pre-tax, pre-provision income," said Todd F. Clossin, President and Chief Executive Officer of WesBanco.  "While continuing to make important technology investments, we have maintained our diligent focus on expense management in order to deliver a year-to-date efficiency ratio of 56.6%.  Furthermore, we believe we are well-positioned for the current operating environment due to our well-defined strategies, strong legacy of credit and risk management, solid liquidity, and sound capital position."

Mr. Clossin added, "I am proud of our entire organization as it has worked tirelessly to serve our customers and communities.  Recently, WesBanco Bank was named, for the second year in a row, a World's Best Bank by Forbes magazine.  This ranking is based on customer satisfaction and consumer feedback, and we received very high scores for customer services, financial advice, satisfaction, and digital services.  The efforts of our employees are a true testimonial to our being a community bank."

Pandemic Responses
As a responsible, community-based financial institution, we have endeavored to assist and help protect our communities, customers, and employees.  Thus, on March 18th, we were one of the first banks to launch a number of initiatives and precautionary measures intended to mitigate the impact of the COVID-19 virus outbreak by mainly offering 90-day payment relief options to affected borrowers, as well as participating in the SBA PPP.  Since that early initiation date, we have seen a reduction in the amount of loans receiving payment relief as the significant majority of customers coming off deferral status are not requesting a second deferral.  Thus, as of June 30, 2020, loans receiving relief  now total 17% of total loans, as we have assisted our residential mortgage customers with 470 loan modifications totaling $119 million, consumer and home equity loan customers with 620 loan modifications totaling $24 million, and commercial and business customers with 2,180 loan modifications totaling $1.8 billion.  Furthermore, through the first two rounds of the SBA PPP, as of June 30, 2020, we have funded roughly 6,800 loans totaling approximately $837 million.  In response to the success of our employees working remotely and the increased utilization of our digital channels by our customers, we anticipate accelerating our branch optimization strategy during the second half of 2020.

Balance Sheet
Portfolio loans of $11.1 billion as of June 30, 2020 increased 43.1% when compared to the prior year period due to the OLBK acquisition and participation in the SBA PPP.  Total organic loan growth was 11.3% year-over-year, driven by the SBA PPP, commercial real estate, and residential real estate loans.  When excluding SBA PPP loans, total organic growth increased 0.5% year-over-year, reflecting the impact of shuttered state economies due to the pandemic.  Total deposits increased 40.2% year-over-year to $12.2 billion due primarily to the OLBK acquisition, CARES Act stimulus, and increased personal savings due to the current recession.  Total deposits, excluding the OLBK acquisition, increased $1.1 billion, or 12.3%, year-over-year due to CARES Act stimulus and increased personal savings, which more than offset a $417.1 million reduction in certificates of deposit, as higher cost CDs were allowed to runoff.

Credit Quality
Overall, we believe our credit quality ratios remained strong as we balanced disciplined loan origination in the current environment with prudent lending standards.  The granting of loan deferrals has resulted in continued relatively benign asset quality metrics, as nonperforming and delinquency amounts do not reflect loans that have been modified as a result of the COVID-19 pandemic.  As of June 30, 2020, 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 slightly to 2.23% of total portfolio loans, comparable to the last four quarters.  Reflecting weakened macroeconomic factors, the provision for credit losses increased to $61.8 million, approximately double from the first quarter of 2020.  Annualized net loan charge-offs to average loans remained low for the quarter and year-to-date periods at seven and 13 basis points, respectively.

On January 1, 2020, WesBanco adopted the CECL accounting standard, resulting in adjustments to retained earnings and the allowance for credit losses; prior to this date, the allowance for credit losses was calculated under the incurred loss method.  The allowance for credit losses specific to total portfolio loans at June 30, 2020 was $168.5 million, or 1.52% of total loans; or, when excluding SBA PPP loans, 1.65% of total portfolio loans.  Excluded from the allowance for credit losses and related coverage ratio are fair market value adjustments on previously acquired loans representing 0.43% of total loans.  The increase in the allowance and related provision for credit losses was related to the continued deterioration in the macroeconomic forecast during the second quarter of 2020, primarily driven by the negative forecasted economic impacts of COVID-19.  The forecast, based upon a blend of two nationally-recognized published economic data through June 30, 2020, is primarily driven by national unemployment and interest rate spreads.

Net Interest Margin and Income
The net interest margin of 3.32% for the second quarter of 2020 decreased 35 basis points year-over-year, primarily due to the lower interest rate environment from the five decreases in the Federal Reserve Board's target federal funds rate, totaling 225 basis points, from July 2019 through March 2020, as well as a flattening of the yield curve.  Reflecting the significantly lower interest rate environment, we aggressively reduced our deposit rates beginning in late March, which helped to lower deposit funding costs 40 basis points year-over-year to 30 basis points for the second quarter of 2020.  In addition, we shortened the maturities and experienced lower rates in our second quarter FHLB borrowings as compared to the prior year, which helped to lower the cost of borrowings 38 basis points year-over-year.  Accretion from acquisitions benefited the second quarter net interest margin by 19 basis points, as compared to 18 basis points in the prior year period and 22 basis points during the first quarter of 2020.  Lastly, while the SBA PPP loans will positively impact the net interest margin as the loans are forgiven during the next several quarters, the funding of these loans negatively impacted the second quarter of 2020 net interest margin by a net two basis points.

Net interest income increased $20.5 million, or 20.9%, during the second quarter of 2020, as compared to the same quarter of 2019, due to a 33.7% increase in average total earning assets, primarily driven by the OLBK acquisition and related accretion from purchase accounting, partially offset by the lower loan yields, reflecting repricing of existing loans and lower new offered rates in the current market environment.  For the six months ended June 30, 2020, net interest income increased $42.4 million, or 21.5%, 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 second quarter of 2020, non-interest income of $32.9 million increased $1.7 million, or 5.5%, from the second quarter of 2019, driven primarily by mortgage banking income and higher commercial customer loan swap-related income, which were partially offset by the limitation on interchange fees for debit card processing and lower service charges on deposits.  Reflecting the low interest rate environment and organic growth, mortgage banking fees increased $5.9 million, or 365.5%, compared to the prior year period, due to growth of roughly 125% in residential mortgage origination dollar volume and the associated sale of one-half of those originations into the secondary market.  Loan swap-related income increased $2.4 million, or 477.2%, to $2.9 million, inclusive of $0.5 million in fair value adjustments, due to commercial loan customer demand in the current rate environment.  The limitation on interchange fees is due to the Durbin amendment in the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank Act"), which took effect for WesBanco during the third quarter of 2019, negatively impacted fee income by approximately $2.7 million.  Service charges on deposits were lower due to higher consumer deposits associated with CARES Act stimulus and lower general consumer spending, resulting in fewer eligible account fees.  Primarily reflecting the items discussed above, non-interest income, for the six months ended June 30, 2020, increased $1.9 million, or 3.3%.

Non-Interest Expense
Total operating expenses continued to be well-controlled during the six-month period ending June 30, 2020, as demonstrated by an efficiency ratio of 56.62%.  Excluding merger-related expenses, non-interest expense for the three months ended June 30, 2020 increased $13.2 million, or 18.3%, to $85.0 million compared to the prior year period, primarily reflecting additional staffing and financial center locations from the OLBK acquisition.  In addition, FDIC insurance expense increased $1.2 million, or 107.4%, due to a higher assessment rate associated with our larger asset level.  On a similar basis, non-interest expense during the first half of 2020 increased $28.0 million, or 19.6%, compared to the prior year period, primarily reflecting the OLBK acquisition and the mid-2019 annual salary increases.

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 June 30, 2020, Tier I leverage was 9.09%, Tier I risk-based capital and common equity Tier 1 capital ratio ("CET 1") were 12.59%, and total risk-based capital was 15.33%.  As compared to the prior year period, Tier 1 leverage and Tier 1 risk-based capital ratios were adversely impacted by the movement of $136.5 million of trust preferred securities, during the fourth quarter of 2019, from Tier 1 to Tier 2 risk-based capital, as required by the Dodd-Frank Act for financial institutions with total assets greater than $15 billion.

Conference Call and Webcast
WesBanco will host a conference call to discuss the Company's financial results for the second quarter of 2020 at 10:00 a.m. ET on Thursday, July 23, 2020.  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 10136713.  The replay will begin at approximately 12:00 p.m. ET on July 23, and end at 12 a.m. ET on August 6.  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, 2019 and documents subsequently filed by WesBanco with the Securities and Exchange Commission ("SEC"), including WesBanco's Form 10-Q for the quarter ended March 31, 2020, 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 and under "Risk Factors" in Part II, Item 1A of WesBanco'sMarch 31, 2020 Quarterly Report on Form 10-Q.  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 including the effects of the COVID-19 pandemic; 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.

About WesBanco, Inc.
Founded in 1870, WesBanco, Inc. (www.wesbanco.com) is a diversified and balanced financial services company that delivers large bank capabilities with a community bank feel.  Our distinct long-term growth strategies are built upon unique sustainable advantages permitting us to span six states with meaningful market share.  Built upon our 'Better Banking Pledge', our customer-centric service culture is focused on growing long-term relationships by pledging to serve all personal and business customer needs efficiently and effectively.  In addition to a full range of online and mobile banking options and a full-suite of commercial products and services, WesBanco provides trust, wealth management, securities brokerage, and private banking services through our century-old Trust and Investment Services department, with approximately $4.5 billion of assets under management (as of June 30, 2020).  WesBanco's banking subsidiary, WesBanco Bank, Inc., operates 236 financial centers in the states of Indiana, Kentucky, Maryland, Ohio, Pennsylvania, and West Virginia.  Additionally, WesBanco operates an insurance agency, WesBanco Insurance Services, Inc., and a full service broker/dealer, WesBanco Securities, Inc.

 

 

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 Six Months Ended

STATEMENT OF INCOME

June 30,


June 30,

Interest and dividend income

2020


2019


% Change


2020


2019


% Change


Loans, including fees

$      115,068


$        96,415


19.3


$      234,571


$      191,917


22.2


Interest and dividends on securities:














Taxable 

14,047


16,444


(14.6)


31,034


33,175


(6.5)



Tax-exempt

4,302


5,142


(16.3)


8,758


10,684


(18.0)




Total interest and dividends on securities

18,349


21,586


(15.0)


39,792


43,859


(9.3)


Other interest income 

1,277


1,542


(17.2)


2,779


2,820


(1.5)

          Total interest and dividend income

134,694


119,543


12.7


277,142


238,596


16.2

Interest expense













Interest bearing demand deposits

1,350


4,314


(68.7)


4,745


8,259


(42.5)


Money market deposits

879


2,009


(56.2)


3,231


3,908


(17.3)


Savings deposits

297


678


(56.2)


1,220


1,200


1.7


Certificates of deposit

3,514


4,098


(14.3)


7,568


8,001


(5.4)




Total interest expense on deposits

6,040


11,099


(45.6)


16,764


21,368


(21.5)


Federal Home Loan Bank borrowings

7,293


6,287


16.0


15,525


12,624


23.0


Other short-term borrowings

279


1,483


(81.2)


1,149


3,039


(62.2)


Subordinated debt and junior subordinated debt 

2,069


2,214


(6.5)


4,530


4,743


(4.5)




Total interest expense

15,681


21,083


(25.6)


37,968


41,774


(9.1)

Net interest income 

119,013


98,460


20.9


239,174


196,822


21.5


Provision for credit losses

61,841


2,747


 NM 


91,661


5,254


 NM 

Net interest income after provision for credit losses

57,172


95,713


(40.3)


147,513


191,568


(23.0)

Non-interest income













Trust fees

6,202


6,339


(2.2)


13,154


13,454


(2.2)


Service charges on deposits

4,323


6,197


(30.2)


10,940


12,747


(14.2)


Electronic banking fees

4,066


7,154


(43.2)


8,320


13,046


(36.2)


Net securities brokerage revenue

1,384


1,973


(29.9)


3,063


3,833


(20.1)


Bank-owned life insurance

1,752


1,340


30.7


3,521


2,659


32.4


Mortgage banking income

7,531


1,618


365.5


8,807


2,674


229.4


Net securities gains

1,299


2,909


(55.3)


2,790


3,566


(21.8)


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

(66)


376


(117.6)


103


512


(79.9)


Other income

6,369


3,250


96.0


10,171


6,438


58.0




Total non-interest income

32,860


31,156


5.5


60,869


58,929


3.3

Non-interest expense













Salaries and wages

36,773


31,646


16.2


75,683


62,585


20.9


Employee benefits

10,138


9,705


4.5


20,511


19,694


4.1


Net occupancy

6,634


5,385


23.2


13,717


10,951


25.3


Equipment 

5,722


4,818


18.8


11,761


9,651


21.9


Marketing

1,567


1,254


25.0


2,705


2,497


8.3


FDIC insurance 

2,395


1,155


107.4


4,508


2,508


79.7


Amortization of intangible assets

3,365


2,465


36.5


6,739


4,978


35.4


Restructuring and merger-related expense

468


81


477.8


5,633


3,188


76.7


Other operating expenses  

18,440


15,443


19.4


35,578


30,333


17.3




Total non-interest expense

85,502


71,952


18.8


176,835


146,385


20.8

Income before provision for income taxes

4,530


54,917


(91.8)


31,547


104,112


(69.7)


Provision for income taxes 

42


10,103


(99.6)


3,663


18,961


(80.7)

Net Income

$          4,488


$        44,814


(90.0)


$        27,884


$        85,151


(67.3)
















Taxable equivalent net interest income

$      120,156


$        99,827


20.4


$      241,502


$      199,662


21.0
















Per common share data












Net income per common share - basic

$            0.07


$            0.82


(91.5)


$            0.41


$            1.56


(73.7)

Net income per common share - diluted

0.07


0.82


(91.5)


0.41


1.56


(73.7)

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

0.07


0.82


(91.5)


0.48


1.60


(70.0)

Dividends declared

0.32


0.31


3.2


0.64


0.62


3.2

Book value (period end)

38.23


37.92


0.8


38.23


37.92


0.8

Tangible book value (period end) (1)

21.10


21.40


(1.4)


21.10


21.40


(1.4)

Average common shares outstanding - basic

67,104,628


54,628,029


22.8


67,295,589


54,613,346


23.2

Average common shares outstanding - diluted

67,181,755


54,773,521


22.7


67,410,460


54,724,209


23.2

Period end common shares outstanding

67,211,192


54,697,199


22.9


67,211,192


54,697,199


22.9
















(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.
























NM - Not Meaningful












 

 

WESBANCO, INC.










Consolidated Selected Financial Highlights









Page 6


(unaudited, dollars in thousands)





























Selected ratios

























For the Six Months Ended










June 30,











2020


2019


% Change




























Return on average assets





0.35

%

1.37

%

(74.45)

%








Return on average assets, excluding

















    after-tax merger-related expenses (1)




0.40


1.41


(71.63)









Return on average equity





2.16


8.47


(74.50)









Return on average equity, excluding

















    after-tax merger-related expenses (1)




2.50


8.72


(71.33)









Return on average tangible equity (1)




4.56


16.01


(71.52)









Return on average tangible equity, excluding 
















    after-tax merger-related expenses (1)




5.17


16.46


(68.59)









Yield on earning assets (2) 





3.96


4.45


(11.01)









Cost of interest bearing liabilities





0.77


1.07


(28.04)









Net interest spread (2)






3.19


3.38


(5.62)









Net interest margin (2)






3.42


3.68


(7.07)









Efficiency (1) (2)






56.62


55.38


2.24









Average loans to average deposits




93.18


87.18


6.88









Annualized net loan charge-offs/average loans



0.13


0.06


116.67









Effective income tax rate 





11.61


18.21


(36.24)



























































































For the Quarter Ended











June 30,


Mar. 31,


Dec. 31,


Sept. 30,


June 30,











2020


2020


2019


2019


2019
























Return on average assets





0.11

%

0.60

%

1.04

%

1.19

%

1.44

%




Return on average assets, excluding

















    after-tax merger-related expenses (1)




0.12


0.70


1.30


1.23


1.44





Return on average equity





0.69


3.63


6.20


7.06


8.77





Return on average equity, excluding

















    after-tax merger-related expenses (1)




0.75


4.26


7.75


7.32


8.78





Return on average tangible equity (1)




1.98


7.07


11.53


13.06


16.35





Return on average tangible equity, excluding 
















    after-tax merger-related expenses (1)




2.08


8.18


14.24


13.50


16.38





Yield on earning assets (2) 





3.75


4.19


4.25


4.34


4.45





Cost of interest bearing liabilities





0.63


0.91


0.99


1.09


1.08





Net interest spread (2)






3.12


3.28


3.26


3.25


3.37





Net interest margin (2)






3.32


3.54


3.55


3.56


3.67





Efficiency (1) (2) 






55.57


57.69


58.29


57.57


54.87





Average loans to average deposits




91.87


94.61


90.78


88.96


87.35





Annualized net loan charge-offs /average loans



0.07


0.18


0.20


0.04


0.05





Effective income tax rate 





0.93


13.40


16.23


18.24


18.40





Trust assets, market value at period end




$    4,487,042


$    4,082,141


$    4,719,966


$    4,443,430


$    4,544,103
























(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


June 30,



December 31, 

December 31, 2019

Assets




2020


2019


% Change

2019

to June 30, 2020

Cash and due from banks


$        219,022


$        157,965


38.7

$        182,905

19.7

Due from banks - interest bearing


671,312


36,390


 NM 

51,891

 NM 

Securities:











Equity securities, at fair value


12,277


11,817


3.9

12,343

(0.5)


Available-for-sale debt securities, at fair value


2,073,949


2,129,284


(2.6)

2,393,558

(13.4)


Held-to-maturity debt securities (fair values of $802,666; $921,534 










and $874,523, respectively)


766,416


900,605


(14.9)

851,753

(10.0)


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


(817)


-


(100.0)

-

(100.0)


Net held-to-maturity debt securities


765,599


900,605


(15.0)

851,753

(10.1)


       Total securities


2,851,825


3,041,706


(6.2)

3,257,654

(12.5)

Loans held for sale


53,324


18,649


185.9

43,013

24.0

Portfolio loans:










Commercial real estate


5,694,457


3,877,633


46.9

5,725,008

(0.5)


Commercial and industrial


2,496,096


1,300,577


91.9

1,644,699

51.8


Residential real estate 


1,893,544


1,633,613


15.9

1,873,647

1.1


Home equity


646,323


590,303


9.5

649,678

(0.5)


Consumer 


343,723


335,728


2.4

374,953

(8.3)

Total portfolio loans, net of unearned income


11,074,143


7,737,854


43.1

10,267,985

7.9

Allowance for credit losses - loans  (1)


(168,475)


(50,859)


(231.3)

(52,429)

(221.3)


       Net portfolio loans


10,905,668


7,686,995


41.9

10,215,556

6.8

Premises and equipment, net


255,306


179,866


41.9

261,014

(2.2)

Accrued interest receivable


59,151


38,450


53.8

43,648

35.5

Goodwill and other intangible assets, net


1,166,853


914,678


27.6

1,149,153

1.5

Bank-owned life insurance


303,022


227,976


32.9

299,516

1.2

Other assets


269,912


191,978


40.6

215,762

25.1

Total Assets


$    16,755,395


$    12,494,653


34.1

$    15,720,112

6.6













Liabilities










Deposits:











Non-interest bearing demand


$      4,067,903


$      2,481,065


64.0

$      3,178,270

28.0


Interest bearing demand


2,596,132


2,079,795


24.8

2,316,855

12.1


Money market


1,610,248


1,098,917


46.5

1,518,314

6.1


Savings deposits


2,103,154


1,670,035


25.9

1,934,647

8.7


Certificates of deposit


1,809,016


1,365,116


32.5

2,055,920

(12.0)


       Total deposits


12,186,453


8,694,928


40.2

11,004,006

10.7

Federal Home Loan Bank borrowings


1,129,631


1,121,283


0.7

1,415,615

(20.2)

Other short-term borrowings


390,777


296,148


32.0

282,362

38.4

Subordinated debt and junior subordinated debt 


192,080


156,534


22.7

199,869

(3.9)


       Total borrowings


1,712,488


1,573,965


8.8

1,897,846

(9.8)

Accrued interest payable


6,040


6,559


(7.9)

8,077

(25.2)

Other liabilities


280,893


145,085


93.6

216,262

29.9

Total Liabilities


14,185,874


10,420,537


36.1

13,126,191

8.1













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










       2020 and 2019, respectively; 68,078,116,  54,697,251 and 68,078,116 shares










issued, respectively; 67,211,192, 54,697,199 and 67,824,428 shares


141,827


113,952


24.5

141,827

-


outstanding, respectively









Capital surplus


1,633,079


1,168,212


39.8

1,636,966

(0.2)

Retained earnings


782,990


788,900


(0.7)

824,694

(5.1)

Treasury stock ( 866,924, 52 and 253,688 shares - at cost, respectively)


(27,518)


(2)


 NM 

(9,463)

(190.8)

Accumulated other comprehensive income


40,516


4,113


885.1

1,201

 NM 

Deferred benefits for directors


(1,373)


(1,059)


(29.7)

(1,304)

(5.3)

Total Shareholders' Equity


2,569,521


2,074,116


23.9

2,593,921

(0.9)

Total Liabilities and Shareholders' Equity


$    16,755,395


$    12,494,653


34.1

$    15,720,112

6.6

























(1) Allowance for credit losses - loans as of June 30, 2020 and March 31, 2020 includes a day 1 adjustment of $41.4 million due to the adoption of ASU 2016-13.














NM - Not Meaningful









 

 

WESBANCO, INC.






Consolidated Selected Financial Highlights





Page 8

(unaudited, dollars in thousands, except shares)






Balance sheets


June 30,

March 31,


Assets




2020


2020

% Change

Cash and due from banks


$           219,022


$         183,138

19.6

Due from banks - interest bearing


671,312


410,734

63.4

Securities:








Equity securities, at fair value


12,277


11,230

9.3


Available-for-sale, at fair value


2,073,949


2,262,082

(8.3)


Held-to-maturity (fair values of $802,666 and 841,120, respectively)


766,416


814,414

(5.9)


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


(817)


(236)

(246.2)


Net held-to-maturity debt securities


765,599


814,178

(6.0)


       Total securities


2,851,825


3,087,490

(7.6)

Loans held for sale


53,324


48,021

11.0

Portfolio Loans:







Commercial real estate


5,694,457


5,604,405

1.6


Commercial and industrial


2,496,096


1,801,751

38.5


Residential real estate 


1,893,544


1,929,590

(1.9)


Home equity


646,323


650,754

(0.7)


Consumer 


343,723


363,096

(5.3)

Total portfolio loans, net of unearned income


11,074,143


10,349,596

7.0

Allowance for credit losses - loans  (1)


(168,475)


(114,272)

(47.4)


Net portfolio loans


10,905,668


10,235,324

6.5

Premises and equipment, net


255,306


258,200

(1.1)

Accrued interest receivable


59,151


43,960

34.6

Goodwill and other intangible assets, net


1,166,853


1,170,070

(0.3)

Bank-owned life insurance


303,022


301,270

0.6

Other assets


269,912


257,365

4.9

Total Assets


$      16,755,395


$    15,995,572

4.8










Liabilities







Deposits:








Non-interest bearing demand


$         4,067,903


$      3,191,713

27.5


Interest bearing demand


2,596,132


2,388,406

8.7


Money market


1,610,248


1,539,835

4.6


Savings deposits


2,103,154


1,984,057

6.0


Certificates of deposit


1,809,016


1,939,321

(6.7)


       Total deposits


12,186,453


11,043,332

10.4

Federal Home Loan Bank borrowings


1,129,631


1,585,608

(28.8)

Other short-term borrowings


390,777


333,966

17.0

Subordinated debt and junior subordinated debt 


192,080


192,008

0.0


       Total borrowings


1,712,488


2,111,582

(18.9)

Accrued interest payable


6,040


7,667

(21.2)

Other liabilities


280,893


246,931

13.8

Total liabilities


14,185,874


13,409,512

5.8










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;







68,078,116 and 68,078,116 shares issued, respectively;







67,211,192 and 67,058,155 shares outstanding, respectively


141,827


141,827

-

Capital surplus


1,633,079


1,638,122

(0.3)

Retained earnings


782,990


800,064

(2.1)

Treasury stock (866,924 and 1,019,961 shares - at cost)


(27,518)


(33,714)

18.4

Accumulated other comprehensive income


40,516


41,141

(1.5)

Deferred benefits for directors


(1,373)


(1,380)

0.5

Total Shareholders' Equity


2,569,521


2,586,060

(0.6)

Total Liabilities and Shareholders' Equity


$      16,755,395


$    15,995,572

4.75



















(1) Allowance for credit losses - loans includes a day 1 adjustment of $41.4 million due to the adoption of ASU 2016-13.











NM - Not Meaningful






 

 

WESBANCO, INC.















Consolidated Selected Financial Highlights












Page 9


(unaudited, dollars in thousands)















Average balance sheet and



















net interest margin analysis




Three Months Ended June 30,



For the Six Months Ended June 30,







2020

2019



2020

2019







Average 

Average



Average 

Average



Average 

Average



Average 

Average


Assets





Balance

Rate



Balance

Rate



Balance

Rate



Balance

Rate


Due from banks - interest bearing




$        637,979

0.17

%


$          72,563

3.46

%


$        385,755

0.35

%


$          74,774

2.55

%

Loans, net of unearned income (1)




10,955,694

4.22



7,700,355

5.02



10,665,441

4.42



7,680,062

5.04


Securities: (2)




















    Taxable





2,288,409

2.47



2,336,099

2.82



2,432,539

2.57



2,344,929

2.83


    Tax-exempt (3)





622,637

3.52



741,371

3.51



634,612

3.51



775,845

3.49


        Total securities





2,911,046

2.69



3,077,470

2.98



3,067,151

2.76



3,120,774

2.99


Other earning assets 





71,493

5.68



50,555

7.26



70,537

6.02



51,330

7.28


         Total earning assets (3)




14,576,212

3.75

%


10,900,943

4.45

%


14,188,884

3.96

%


10,926,940

4.45

%

Other assets





2,138,999




1,588,720




2,061,191




1,572,988



Total Assets





$    16,715,211




$    12,489,663




$    16,250,075




$    12,499,928























Liabilities and Shareholders' Equity


















Interest bearing demand deposits




$      2,558,768

0.21

%


$      2,139,372

0.81

%


$      2,450,605

0.39

%


$      2,134,514

0.78

%

Money market accounts 




1,603,395

0.22



1,116,124

0.72



1,573,579

0.41



1,135,237

0.69


Savings deposits





2,060,392

0.06



1,676,477

0.16



2,006,940

0.12



1,668,160

0.15


Certificates of deposit





1,846,929

0.77



1,397,167

1.18



1,918,189

0.79



1,417,703

1.14


    Total interest bearing deposits




8,069,484

0.30



6,329,140

0.70



7,949,313

0.42



6,355,614

0.68


Federal Home Loan Bank borrowings



1,381,093

2.12



1,008,027

2.50



1,426,134

2.19



1,030,396

2.47


Other borrowings





365,793

0.31



320,269

1.86



350,917

0.66



324,033

1.89


Subordinated debt and junior subordinated debt 



192,021

4.33



164,108

5.41



195,257

4.67



176,746

5.41


      Total interest bearing liabilities 



10,008,391

0.63

%


7,821,544

1.08

%


9,921,621

0.77

%


7,886,789

1.07

%

Non-interest bearing demand deposits



3,856,291




2,486,710




3,496,784




2,453,770



Other liabilities





247,591




131,219




233,166




132,657



Shareholders' equity





2,602,938




2,050,190




2,598,504




2,026,712



Total Liabilities and Shareholders' Equity



$    16,715,211




$    12,489,663




$    16,250,075




$    12,499,928



Taxable equivalent net interest spread




3.12

%



3.37

%



3.19

%



3.38

%

Taxable equivalent net interest margin 




3.32

%



3.67

%



3.42

%



3.68

%









































(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 $2.6 million and $0.4 million for the three months ended June 30, 2020 and 2019, respectively, and are $3.3 million and $0.9 million for the six months ended June 30, 2020 and 2019, respectively. As part of loan fees for both the three and six month ended June 30, 2020, is $2.1 million of PPP loan fees. Additionally, loan accretion included in interest income on loans acquired from prior acquisitions was $4.1 million and $4.7 million for the three months ended June 30, 2020 and 2019, respectively, and are $8.2 million and $9.6 million for the six months ended June 30, 2020 and 2019, respectively. Accretion on interest bearing liabilities acquired from the prior acquisitions was $2.6 million and $0.3 million for the three months ended June 30, 2020 and 2019, respectively, and are $6.0 million and  $0.7 million for the six months ended June 30, 2020 and 2019, 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

June 30,


Mar. 31,


Dec. 31,


Sept.  30,


June 30,

Interest and dividend income

2020


2020


2019


2019


2019


Loans, including fees

$      115,068


$      119,503


$      105,879


$        95,369


$        96,415


Interest and dividends on securities:












Taxable 

14,047


16,986


16,586


15,887


16,444



Tax-exempt

4,302


4,456


4,563


4,759


5,142




Total interest and dividends on securities

18,349


21,442


21,149


20,646


21,586


Other interest income 

1,277


1,503


1,281


1,333


1,542

          Total interest and dividend income

134,694


142,448


128,309


117,348


119,543

Interest expense











Interest bearing demand deposits

1,350


3,393


4,054


4,489


4,314


Money market deposits

879


2,352


2,143


1,973


2,009


Savings deposits

297


923


935


861


678


Certificates of deposit

3,514


4,054


3,800


3,830


4,098




Total interest expense on deposits

6,040


10,723


10,932


11,153


11,099


Federal Home Loan Bank borrowings

7,293


8,232


7,279


6,645


6,287


Other short-term borrowings

279


870


1,009


1,353


1,483


Subordinated debt and junior subordinated debt

2,069


2,461


2,125


2,077


2,214




Total interest expense

15,681


22,286


21,345


21,228


21,083

Net interest income 

119,013


120,162


106,964


96,120


98,460


Provision for credit losses

61,841


29,821


1,824


4,121


2,747

Net interest income after provision for credit losses

57,172


90,341


105,140


91,999


95,713

Non-interest income











Trust fees

6,202


6,952


6,699


6,425


6,339


Service charges on deposits

4,323


6,617


7,171


7,056


6,197


Electronic banking fees

4,066


4,254


4,336


5,253


7,154


Net securities brokerage revenue

1,384


1,679


1,393


1,765


1,973


Bank-owned life insurance

1,752


1,769


1,882


1,373


1,340


Mortgage banking income

7,531


1,276


2,957


2,588


1,618


Net securities gains

1,299


1,491


520


235


2,909


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

(66)


169


61


158


376


Other income

6,369


3,802


5,819


2,097


3,250




Total non-interest income

32,860


28,009


30,838


26,950


31,156

Non-interest expense











Salaries and wages

36,773


38,910


36,984


32,915


31,646


Employee benefits

10,138


10,373


9,894


9,726


9,705


Net occupancy

6,634


7,084


6,162


5,392


5,385


Equipment 

5,722


6,039


5,570


5,273


4,818


Marketing

1,567


1,138


2,059


1,505


1,254


FDIC insurance 

2,395


2,113


668


(1,221)


1,155


Amortization of intangible assets

3,365


3,374


2,916


2,446


2,465


Restructuring and merger-related expense

468


5,164


11,522


1,688


81


Other operating expenses  

18,440


17,138


16,781


15,544


15,443




Total non-interest expense

85,502


91,333


92,556


73,268


71,952

Income before provision for income taxes

4,530


27,017


43,422


45,681


54,917


Provision for income taxes 

42


3,621


7,046


8,334


10,103

Net Income


$          4,488


$        23,396


$        36,376


$        37,347


$        44,814














Taxable equivalent net interest income

$      120,156


$      121,346


$      108,177


$        97,385


$        99,827














Per common share data










Net income per common share - basic

$            0.07


$            0.34


$            0.60


$            0.68


$            0.82

Net income per common share - diluted

0.07


0.34


0.60


0.68


0.82

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

0.07


0.40


0.75


0.71


0.82

Dividends declared

0.32


0.32


0.31


0.31


0.31

Book value (period end)

38.23


38.56


38.24


38.42


37.92

Tangible book value (period end) (1)

21.10


21.36


21.55


21.89


21.40

Average common shares outstanding - basic

67,104,628


67,486,550


60,461,325


54,695,578


54,628,029

Average common shares outstanding - diluted

67,181,755


67,587,446


60,562,366


54,751,344


54,773,521

Period end common shares outstanding

67,211,192


67,058,155


67,824,428


54,691,225


54,697,199

Full time equivalent employees

2,676


2,703


2,705


2,330


2,353



























(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






June 30,


Mar. 31,


Dec. 31,


Sept. 30,


June 30,


Asset quality data


2020


2020


2019


2019


2019


Non-performing assets:













Troubled debt restructurings - accruing


$          5,105


$          5,434


$          5,431


$          5,840


$          5,487



Non-accrual loans:














Troubled debt restructurings


1,339


1,571


1,422


1,345


1,924




Other non-accrual loans


34,119


32,796


43,491


33,456


30,974




    Total non-accrual loans


35,458


34,367


44,913


34,801


32,898




    Total non-performing loans 


40,563


39,801


50,344


40,641


38,385



Other real estate and repossessed assets


1,212


1,083


4,178


3,678


4,973




Total non-performing assets


$         41,775


$         40,884


$         54,522


$         44,319


$         43,358
















Past due loans (1):













Loans past due 30-89 days


$         30,595


$         32,805


$         36,330


$         17,906


$         15,446



Loans past due 90 days or more


36,903


14,287


11,613


5,425


2,634




Total past due loans


$         67,498


$         47,092


$         47,943


$         23,331


$         18,080
















Criticized and classified loans (2):













Criticized loans


$       148,580


$       120,801


$       118,959


$         78,880


$         73,236



Classified loans


98,127


95,162


103,519


95,071


41,004




Total criticized and classified loans


$       246,707


$       215,963


$       222,478


$       173,951


$       114,240
















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

0.28

%

0.32

%

0.35

%

0.23

%

0.20

%

Loans past due 90 days or more / total portfolio loans

0.33


0.14


0.11


0.07


0.03


Non-performing loans / total portfolio loans


0.37


0.38


0.49


0.52


0.50


Non-performing assets/total portfolio loans, other












real estate and repossessed assets


0.38


0.39


0.53


0.57


0.56


Non-performing assets / total assets


0.25


0.26


0.35


0.35


0.35


Criticized and classified loans / total portfolio loans

2.23


2.09


2.17


2.24


1.48
















Allowance for credit losses












Allowance for credit losses - loans (4)


$       168,475


$       114,272


$         52,429


$         54,317


$         50,859


Provision for credit losses (4)


61,841


29,821


1,824


4,121


2,747


Net loan and deposit account overdraft charge-offs

1,942


4,716


4,476


791


947
















Annualized net loan charge-offs /average loans


0.07

%

0.18

%

0.20

%

0.04

%

0.05

%

Allowance for credit losses - loans / total portfolio loans

1.52

%

1.10

%

0.51

%

0.70

%

0.66

%

Allowance for credit losses - loans / total portfolio loans excluding PPP loans

1.65

%

1.10

%

0.51

%

0.70

%

0.66

%

Allowance for credit losses - loans / non-performing loans

4.15

x

2.87

x

1.04

x

1.34

x

1.32

x

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












loans past due 


1.56

x

1.32

x

0.53

x

0.85

x

0.90

x

































Quarter Ended






June 30,


Mar. 31,


Dec. 31,


Sept. 30,


June 30,






2020


2020


2019


2019


2019


Capital ratios












Tier I leverage capital


9.09

%

9.64

%

11.30

%

11.30

%

11.09

%

Tier I risk-based capital


12.59


12.51


12.89


15.40


15.39


Total risk-based capital


15.33


14.83


15.12


16.36


16.32


Common equity tier 1 capital ratio (CET 1)


12.59


12.51


12.89


13.87


13.83


Average shareholders' equity to average assets


15.57


16.43


16.73


16.80


16.42


Tangible equity to tangible assets (5)


9.09


9.65


10.02


10.24


10.10






























(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) Total portfolio loans includes $836.8 million of PPP loans as of June 30, 2020.










(4) The provision for credit losses includes $5.1 million and $1.7 million for loan commitments for the three months ended June 30, 2020 and March 31, 2020, respectively.


Excludes the allowance for credit losses - loan commitments, which is included in other liabilities, is $10.7 million and $5.6 million as of June 30, 2020 and March 31, 2020, respectively.




(5) 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 





June 30,


Mar. 31,


Dec. 31,


Sept. 30,


June 30,


June 30,

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

2020


2020


2019


2019


2019


2020

2019

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














Net income



$             4,488


$           23,396


$           36,376


$           37,347


$           44,814


$           27,884

$           85,151


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

370


4,080


9,102


1,334


64


4,450

2,519


Net income excluding after-tax merger-related expenses

4,858


27,476


45,478


38,681


44,878


32,334

87,670


















Average total assets


$    16,715,211


$    15,784,939


$    13,919,430


$    12,488,153


$    12,489,663


$    16,250,075

$    12,499,928

















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

0.12%


0.70%


1.30%


1.23%


1.44%


0.40%

1.41%

















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














Net income



$             4,488


$           23,396


$           36,376


$           37,347


$           44,814


$           27,884

$           85,151


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

370


4,080


9,102


1,334


64


4,450

2,519


Net income excluding after-tax merger-related expenses 

4,858


27,476


45,478


38,681


44,878


32,334

87,670


















Average total shareholders' equity

2,602,938


2,594,069


2,329,121


2,097,534


2,050,190


2,598,504

2,026,712

















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

0.75%


4.26%


7.75%


7.32%


8.78%


2.50%

8.72%

















Return on average tangible equity:














Net income 



$             4,488


$           23,396


$           36,376


$           37,347


$           44,814


$           27,884

$           85,151


Plus: amortization of intangibles (1)

2,658


2,665


2,304


1,932


1,947


5,324

3,933


Net income before amortization of intangibles 

7,146


26,061


38,680


39,279


46,761


33,208

89,084


















Average total shareholders' equity

2,602,938


2,594,069


2,329,121


2,097,534


2,050,190


2,598,504

2,026,712


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

(1,152,856)


(1,112,327)


(997,658)


(904,204)


(903,243)


(1,132,591)

(904,634)


Average tangible equity


$      1,450,082


$      1,481,742


$      1,331,463


$      1,193,330


$      1,146,947


$      1,465,913

$      1,122,078

















Return on average tangible equity (annualized)  (2)

1.98%


7.07%


11.53%


13.06%


16.35%


4.56%

16.01%

















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














Net income



$             4,488


$           23,396


$           36,376


$           37,347


$           44,814


$           27,884

$           85,151


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

370


4,080


9,102


1,334


64


4,450

2,519


Plus: amortization of intangibles  (1)

2,658


2,665


2,304


1,932


1,947


5,324

3,933


Net income before amortization of intangibles and excluding 














    after-tax merger-related expenses

7,516


30,141


47,782


40,613


46,825


37,659

91,603


















Average total shareholders' equity

2,602,938


2,594,069


2,329,121


2,097,534


2,050,190


2,598,504

2,026,712


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

(1,152,856)


(1,112,327)


(997,658)


(904,204)


(903,243)


(1,132,591)

(904,634)


Average tangible equity


$      1,450,082


$      1,481,742


$      1,331,463


$      1,193,330


$      1,146,947


$      1,465,913

$      1,122,078

















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

2.08%


8.18%


14.24%


13.50%


16.38%


5.17%

16.46%

















Efficiency ratio:
















Non-interest expense


$           85,502


$           91,333


$           92,556


$           73,268


$           71,952


$         176,835

$         146,385


Less: restructuring and merger-related expense

(468)


(5,164)


(11,522)


(1,688)


(81)


(5,633)

(3,188)


Non-interest expense excluding restructuring and merger-related expense

85,034


86,169


81,034


71,580


71,871


171,202

143,197


















Net interest income on a fully taxable equivalent basis

120,156


121,346


108,177


97,385


99,827


241,502

199,662


Non-interest income


32,860


28,009


30,838


26,950


31,156


60,869

58,929


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

$         153,016


$         149,355


$         139,015


$         124,335


$         130,983


$         302,371

$         258,591


Efficiency Ratio


55.57%


57.69%


58.29%


57.57%


54.87%


56.62%

55.38%

















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














Net income



$             4,488


$           23,396


$           36,376


$           37,347


$           44,814


$           27,884

$           85,151


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

370


4,080


9,102


1,334


64


4,450

2,519

Net income, excluding after-tax merger-related expenses

$             4,858


$           27,476


$           45,478


$           38,681


$           44,878


$           32,334

$           87,670

































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














Net income per diluted share

$              0.07


$              0.35


$              0.60


$              0.68


$              0.82


$              0.41

$              1.56


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

(0.00)


0.06


0.15


0.03


0.00


0.07

0.04

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

$              0.07


$              0.41


$              0.75


$              0.71


$              0.82


$              0.48

$              1.60





































Period End








June 30,


Mar. 31,


Dec. 31, 


Sept. 30,


June 30,








2020


2020


2019


2019


2019




Tangible book value per share:















Total shareholders' equity


$      2,569,521


$      2,586,060


$      2,593,921


$      2,101,269


$      2,074,116





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

(1,151,523)


(1,154,033)


(1,132,262)


(904,256)


(903,729)





Tangible equity


1,417,998


1,432,027


1,461,659


1,197,013


1,170,387





















Common shares outstanding

67,211,192


67,058,155


67,824,428


54,691,225


54,697,199




















Tangible book value per share


$             21.10


$             21.36


$             21.55


$             21.89


$             21.40




















Tangible equity to tangible assets:














Total shareholders' equity


$      2,569,521


$      2,586,060


$      2,593,921


$      2,101,269


$      2,074,116





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

(1,151,523)


(1,154,033)


(1,132,262)


(904,256)


(903,729)





Tangible equity


1,417,998


1,432,027


1,461,659


1,197,013


1,170,387





















Total assets



16,755,395


15,995,572


15,720,112


12,593,887


12,494,653





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

(1,151,523)


(1,154,033)


(1,132,262)


(904,256)


(903,729)





Tangible assets


$    15,603,872


$    14,841,539


$    14,587,850


$    11,689,631


$    11,590,924




















Tangible equity to tangible assets


9.09%


9.65%


10.02%


10.24%


10.10%




































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

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

 

 

ADDITIONAL NON-GAAP FINANCIAL MEASURES












Page 13

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





















Three Months Ended


Year to Date 





June 30,


Mar. 31,


Dec. 31,


Sept. 30,


June 30,


June 30,

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

2020


2020


2019


2019


2019


2020<