WesBanco Announces Fourth Quarter 2021 Financial Results

Company Release - 1/25/2022 4:15 PM ET

WHEELING, W.Va., Jan. 25, 2022 /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 twelve months ended December 31, 2021.  Net income available to common shareholders for the fourth quarter of 2021 was $51.6 million, with diluted earnings per share of $0.82, compared to $50.2 million and $0.75 per diluted share, respectively, for the fourth quarter of 2020.  For the twelve months ended December 31, 2021, net income was $232.1 million, or $3.53 per diluted share, compared to $119.4 million, or $1.77 per diluted share, for the 2020 period.  Net income available to common shareholders, excluding after-tax restructuring and merger-related expenses, for the three months ended December 31, 2021, was $51.8 million, or $0.82 per diluted share, as compared to $50.6 million and $0.76 per diluted share, respectively, in the prior year quarter (non-GAAP measures).  On the same basis, net income for the twelve months ended December 31, 2021 was $237.4 million, or $3.62 per diluted share, as compared to $127.1 million, or $1.88 per diluted share, in the prior year period (non-GAAP measures).




For the Three Months Ended December 31,



For the Twelve Months Ended December 31,




2021


2020



2021


2020

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


Net Income


Diluted

Earnings

Per Share


Net Income


Diluted
Earnings

Per Share



Net Income


Diluted
Earnings
Per Share


Net Income


Diluted
Earnings
Per Share

Net income available to common

shareholders (Non-GAAP)(1)


$      51,757


$       0.82


$      50,593


$       0.76



$    237,441


$       3.62


$    127,083


$       1.88

Less: After-tax restructuring and merger-

related expenses


(140)


-


(383)


(0.01)



(5,306)


(0.09)


(7,683)


(0.11)

Net income available to common

shareholders (GAAP)


$      51,617


$       0.82


$      50,210


$       0.75



$    232,135


$       3.53


$    119,400


$       1.77


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

Financial and operational highlights during the quarter ended December 31, 2021:

  • Continued expense management demonstrated by a year-to-date efficiency ratio of 58.22% (non-GAAP measure)
  • Trust assets reached a record level of $5.6 billion, reflecting both market appreciation and organic growth
  • Reflecting strong organic growth, residential mortgage originations increased 9% year-over-year, and totaled a record $1.4 billion during 2021, a 7% year-over-year increase
  • Improving macro-economic forecasts and hospitality metrics approaching pre-pandemic levels favorably impacted the provision for credit losses under the Current Expected Credit Losses ("CECL") methodology, which drove both the net benefit in the provision for credit losses and the reduction in allowance for credit losses during the quarter
  • Key credit quality metrics such as non-performing assets, past due loans, criticized and classified loans, and net loan charge-offs, as percentages of total portfolio loans, have remained at low levels and favorable to peer bank averages, those with total assets between $10 billion and $25 billion (based upon the prior four quarters)
  • Deposit growth, excluding certificates of deposit ("CDs"), was 13.5% year-over-year, driven by growth in demand deposits
  • During the quarter, we continued to return capital to our shareholders as we purchased approximately 1.6 million shares of our common stock on the open market under existing share repurchase authorizations

"WesBanco had another successful year during 2021 as we remained focused on ensuring a strong organization for our shareholders, and continued to appropriately return capital to them through both long-term, sustainable earnings growth and effective capital management," said Todd F. Clossin, President and Chief Executive Officer of WesBanco.  "Through the successful execution of our well-defined strategies we generated solid annual pre-tax, pre-provision earnings, while remaining a well-capitalized financial institution with a strong balance sheet and solid credit quality."

Mr. Clossin added, "Most importantly, we are proud of our entire organization as it adhered to our community banking roots and diligently focused on serving the financial needs of our customers and communities through the continuing pandemic, the gradual re-opening of our economies, and the completion of our core banking software system conversion, while still managing to receive numerous national accolades.  Lastly, we remain well-positioned for continued success, and are excited about our growth opportunities for the upcoming year."

Balance Sheet
As of December 31, 2021, total portfolio loans were $9.7 billion, and, when excluding SBA Payroll Protection Program ("SBA PPP") loans, total loans of $9.6 billion decreased 0.7% sequentially and 4.9% year-over-year.  Loan growth for the fourth quarter of 2021 reflects the continuation of both SBA PPP loan forgiveness and elevated commercial real estate payoffs.  While commercial real estate payoffs of $160 million during the fourth quarter declined by approximately $100 million from the third quarter, they remained above our more historical $85 million quarterly range.  This higher level of payoffs negatively impacted total loan growth by approximately one percentage point (non-annualized).  Further, the fourth quarter of 2021 included forgiveness of approximately 1,240 SBA PPP loans totaling $109 million (net of deferred fees).  As of December 31, 2021, approximately 1,950 SBA PPP loans for $163 million remained in the loan portfolio.

As of December 31, 2021, total deposits were $13.6 billion, which increased both sequentially and year-over-year due primarily to stimulus funds previously received by our customers and increased personal savings, which more than offset a $325.9 million year-over-year reduction in CDs.  Deposits, excluding CDs, increased 13.5% year-over-year, driven by a 15.3% increase in total demand deposits, which represent approximately 59% of total deposits.

Credit Quality
As of December 31, 2021, total loans past due, non-performing loans, and non-performing assets as percentages of the loan portfolio and total assets have remained relatively low and consistent throughout the last five quarters.  In addition, criticized and classified loans as a percent of the loan portfolio decreased 84 basis points year-over-year to 3.75%.  For the fourth quarter, we realized net loan charge-offs to average loans of four basis points, on an annualized basis.  The allowance for credit losses specific to total portfolio loans at December 31, 2021 was $121.6 million, or 1.25% of total loans; or, when excluding SBA PPP loans, 1.27% of total portfolio loans.  The improvements in macroeconomic forecasts and hospitality qualitative factors resulted in a negative provision for credit losses of $13.6 million for the fourth quarter of 2021, and a negative provision of $64.3 million for the year-to-date period.

Net Interest Margin and Income
The net interest margin of 2.97% for the fourth quarter of 2021 decreased 11 basis points sequentially and 34 basis points from the fourth quarter of 2020, primarily due to the lower interest rate environment, and a shift to a higher level of securities as a percentage of total assets.  As a result of increased cash balances from our customers' higher personal savings, investment securities increased by $1.3 billion year-over-year and, as of December 31, 2021, represented approximately 24% of total assets.  Reflecting the continued low interest rate environment, we remain focused on controlling the costs of our various funding sources.  We have reduced deposit funding costs 10 basis points year-over-year to 13 basis points for the fourth quarter of 2021, or just 8 basis points when including non-interest bearing deposits.  When including our continued reductions in FHLB and other borrowings, the costs of total interest-bearing liabilities decreased 25 basis points year-over-year to 20 basis points.  Accretion from acquisitions benefited the fourth quarter net interest margin by 9 basis points, as compared to 16 basis points in the prior year period.  Lastly, the forgiveness of SBA PPP loans benefited the fourth quarter of 2021 net interest margin by a net 9 basis points, as compared to a net 2 basis points in the prior year period.

Net interest income decreased $9.4 million, or 7.8%, during the fourth quarter of 2021, as compared to the same quarter of 2020, reflecting lower loan yields due to repricing of existing loans and lower new offered rates in the current market environment, lower accretion from purchase accounting, and lower rates on new investment securities purchased, partially offset by lower interest paid on deposits and borrowings as described above.  For the twelve months ended December 31, 2021, net interest income decreased $21.5 million, or 4.5%, due to the reasons discussed for the three-month period comparison.

Non-Interest Income
For the fourth quarter of 2021, non-interest income of $30.7 million decreased $2.0 million, or 6.1%, from the fourth quarter of 2020, driven primarily by lower mortgage banking income, which decreased $2.6 million, or 47.2%, as we continued efforts to retain more residential mortgages on the balance sheet.  Residential mortgage originations of $383 million continued to be strong during the quarter, while the amount retained increased from 35% last year to approximately 70%.  Bank-owned life insurance increased $1.1 million, or 63.7%, year-over-year due to death benefits during the quarter and new policies purchased during the third quarter.  Reflective of macroeconomic improvements, service charges on deposits were higher due to increased general consumer spending, resulting in higher eligible account fees.  Lastly, other income decreased $1.9 million, or 28.6%, due to lower loan swap-related income driven by a negative fair market value adjustment as compared to last year, and the sale of the debit card sponsorship business earlier this year.

Non-interest income, for the twelve months ended December 31, 2021, increased $4.6 million, or 3.6%.  The $4.7 million increase in net gain on other real estate owned and other assets was primarily due to a gain earned during the second quarter on an investment made by WesBanco's Community Development Corporation in a start-up firm more than ten years ago that was recently acquired by a public company.  Trust fees increased $3.2 million, or 12.1%, to $29.5 million reflecting a 12.3% year-over-year increase in trust assets to $5.6 billion due to both market appreciation and organic growth.  In addition, net securities gains decreased $3.2 million, or 73.9%, year-over-year due to higher sales of securities during the prior year.  Mortgage banking fees decreased $3.2 million, or 14.1%, compared to the prior year period, net of year-to-date fair value loss adjustments of $1.2 million, from our efforts to keep more 1-to-4 family residential mortgages on the balance sheet.

Non-Interest Expense
Excluding restructuring and merger-related expenses, non-interest expense for the three months ended December 31, 2021 were well-controlled as they increased $0.5 million, or 0.6%, to $88.1 million compared to the prior year period.  Salaries and wages increased $1.3 million, or 3.3%, due to higher securities broker and residential mortgage originator commissions and lower loan contra-costs, which more than offset lower year-over-year salary expense of approximately $1.7 million and a net decrease in bonus and stock compensation expense of $0.6 million compared to the prior year period.  Equipment and software expense for the fourth quarter of 2021 increased $1.5 million, or 22.6%, year-over-year due primarily to the movement of online banking costs from other operating expenses.  Lastly, other operating expenses decreased $2.8 million, or 15.4%, due to the aforementioned move of online banking costs, as well as a reduction in ACH and ATM processing charges related to a change in providers, in conjunction with our core banking software system conversion.

On a similar basis, non-interest expense during the twelve months of 2021 increased just $1.3 million, or 0.4%, compared to the prior year period.  The primary drivers of this slight increase were higher equipment and software costs, legal settlement costs incurred during the third quarter, and marketing expense from product advertising and brand awareness campaigns that were delayed from 2020 due to the COVID-19 pandemic.  The increases were mostly offset by lower FDIC insurance from a refund received during the second quarter and improved risk factors and amortization of intangible asset expense, as well as efficiencies derived from financial center closures during the past year.

Capital
WesBanco continues to maintain what we believe are strong regulatory capital ratios, as both consolidated and bank-level regulatory capital ratios are well above the applicable "well-capitalized" standards promulgated by bank regulators and the BASEL III capital standards.  At December 31, 2021, Tier I leverage was 10.02%, Tier I risk-based capital ratio was 14.05%, common equity Tier 1 capital ratio ("CET 1") was 12.77%, and total risk-based capital was 15.91%.

During the fourth quarter of 2021, WesBanco repurchased 1,560,266 shares of its outstanding common stock on the open market at a total cost of $54.7 million, or $35.03 per share.  During the twelve months of 2021, WesBanco repurchased 5,177,563 shares of its outstanding common stock on the open market.  As of December 31, 2021, approximately 1.4 million shares remained for repurchase under the existing share repurchase authorization that was approved on August 26, 2021, by WesBanco's Board of Directors.

Conference Call and Webcast
WesBanco will host a conference call to discuss the Company's financial results for the fourth quarter of 2021 at 10:00 a.m. ET on Wednesday, January 26, 2022.  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.   

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 4384990.  The replay will begin at approximately 12:00 p.m. ET on January 26, and end at 12 a.m. ET on February 9.  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, 2020 and documents subsequently filed by WesBanco with the Securities and Exchange Commission ("SEC"), including WesBanco's Form 10-Q for the quarters ended March 31, 2021, June 30, 2021 and September 30, 2021, which are available at the SEC's website, www.sec.gov or at WesBanco's website, www.WesBanco.com.  Investors are cautioned that forward-looking statements, which are not historical fact, involve risks and uncertainties, including those detailed in WesBanco's most recent Annual Report on Form 10-K filed with the SEC under "Risk Factors" in Part I, Item 1A.  Such statements are subject to important factors that could cause actual results to differ materially from those contemplated by such statements, including, without limitation, the effects of changing regional and national economic conditions 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.

Non-GAAP Financial Measures
In addition to the results of operations presented in accordance with Generally Accepted Accounting Principles (GAAP), WesBanco's management uses, and this presentation contains or references, certain non-GAAP financial measures, such as pre-tax pre-provision income, tangible common equity/tangible assets; net income excluding after-tax restructuring and merger-related expenses; efficiency ratio; return on average assets; and return on average tangible equity.  WesBanco believes these financial measures provide information useful to investors in understanding our operational performance and business and performance trends which facilitate comparisons with the performance of others in the financial services industry. Although WesBanco believes that these non-GAAP financial measures enhance investors' understanding of WesBanco's business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. The non-GAAP financial measures contained therein should be read in conjunction with the audited financial statements and analysis as presented in the Annual Report on Form 10-K as well as the unaudited financial statements and analyses as presented in the Quarterly Reports on Forms 10-Q for WesBanco and its subsidiaries, as well as other filings that the company has made with the SEC.

About WesBanco, Inc.
Founded in 1870, WesBanco, Inc. (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 $5.6 billion of assets under management (as of December 31, 2021).  WesBanco's banking subsidiary, WesBanco Bank, Inc., operates 205 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 Twelve Months Ended

Statement of Income

December 31,


December 31,

Interest and dividend income

2021


2020


% Change


2021


2020


% Change


Loans, including fees

$          97,432


$          114,582


(15.0)


$        415,965


$          465,677


(10.7)


Interest and dividends on securities:














Taxable 

12,934


10,892


18.7


50,401


53,594


(6.0)



Tax-exempt

4,236


4,059


4.4


16,161


16,999


(4.9)




Total interest and dividends on securities

17,170


14,951


14.8


66,562


70,593


(5.7)


Other interest income 

605


945


(36.0)


2,440


5,007


(51.3)

          Total interest and dividend income

115,207


130,478


(11.7)


484,967


541,277


(10.4)

Interest expense













Interest bearing demand deposits

810


1,099


(26.3)


3,669


7,069


(48.1)


Money market deposits

315


678


(53.5)


1,803


4,616


(60.9)


Savings deposits

261


280


(6.8)


1,031


1,802


(42.8)


Certificates of deposit

1,501


2,797


(46.3)


7,623


13,562


(43.8)




Total interest expense on deposits

2,887


4,854


(40.5)


14,126


27,049


(47.8)


Federal Home Loan Bank borrowings

780


3,719


(79.0)


6,167


24,701


(75.0)


Other short-term borrowings

35


275


(87.3)


227


1,729


(86.9)


Subordinated debt and junior subordinated debt 

1,178


1,918


(38.6)


6,514


8,318


(21.7)




Total interest expense

4,880


10,766


(54.7)


27,034


61,797


(56.3)

Net interest income 

110,327


119,712


(7.8)


457,933


479,480


(4.5)


Provision for credit losses

(13,559)


(209)


 NM 


(64,274)


107,741


(159.7)

Net interest income after provision for credit losses

123,886


119,921


3.3


522,207


371,739


40.5

Non-interest income













Trust fees

7,441


6,754


10.2


29,511


26,335


12.1


Service charges on deposits

6,592


5,671


16.2


22,412


21,943


2.1


Electronic banking fees

4,465


4,424


0.9


19,318


17,524


10.2


Net securities brokerage revenue

1,579


1,402


12.6


6,896


6,189


11.4


Bank-owned life insurance

2,864


1,750


63.7


8,936


7,359


21.4


Mortgage banking income

2,872


5,442


(47.2)


19,528


22,736


(14.1)


Net securities gains (losses)

372


691


(46.2)


1,113


4,268


(73.9)


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

(158)


18


(977.8)


4,816


103


 NM 


Other income

4,682


6,553


(28.6)


20,255


21,728


(6.8)




Total non-interest income

30,709


32,705


(6.1)


132,785


128,185


3.6

Non-interest expense













Salaries and wages

40,420


39,140


3.3


154,242


153,166


0.7


Employee benefits

10,842


10,608


2.2


41,033


41,723


(1.7)


Net occupancy

6,413


6,771


(5.3)


26,843


27,580


(2.7)


Equipment and software

8,352


6,810


22.6


30,006


24,801


21.0


Marketing

2,601


1,675


55.3


8,634


5,957


44.9


FDIC insurance 

1,460


1,278


14.2


4,150


7,734


(46.3)


Amortization of intangible assets

2,834


3,327


(14.8)


11,457


13,411


(14.6)


Restructuring and merger-related expense

177


484


(63.4)


6,717


9,725


(30.9)


Other operating expenses  

15,204


17,976


(15.4)


70,061


70,748


(1.0)




Total non-interest expense

88,303


88,069


0.3


353,143


354,845


(0.5)

Income before provision for income taxes

66,292


64,557


2.7


301,849


145,079


108.1


Provision for income taxes 

12,144


11,703


3.8


59,589


23,035


158.7

Net Income

54,148


52,854


2.4


242,260


122,044


98.5

Preferred stock dividends

2,531


2,644


(4.3)


10,125


2,644


282.9

Net income available to common shareholders

$          51,617


$            50,210


2.8


$        232,135


$          119,400


94.4































Taxable equivalent net interest income

$       111,453


$       120,790


(7.7)


$       462,229


$       483,999


(4.5)
















Per common share data












Net income per common share - basic

$               0.82


$                0.75


9.3


$               3.54


$                1.78


98.9

Net income per common share - diluted

0.82


0.75


9.3


3.53


1.77


99.4

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

0.82


0.76


7.9


3.62


1.88


92.6

Dividends declared

0.33


0.32


3.1


1.32


1.28


3.1

Book value (period end)

40.91


38.84


5.3


40.91


38.84


5.3

Tangible book value (period end) (1)

22.61


21.75


4.0


22.61


21.75


4.0

Average common shares outstanding - basic

63,045,061


67,238,005


(6.2)


65,520,527


67,260,796


(2.6)

Average common shares outstanding - diluted

63,183,411


67,304,442


(6.1)


65,669,970


67,310,584


(2.4)

Period end common shares outstanding

62,307,245


67,254,706


(7.4)


62,307,245


67,254,706


(7.4)

Period end preferred shares outstanding

150,000


150,000


-


150,000


150,000


-
















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







(2) Certain items excluded from the calculation consist of after-tax restructuring and merger-related expenses.






















NM - Not Meaningful












 

 

WESBANCO, INC.
















Consolidated Selected Financial Highlights











Page 6


(unaudited, dollars in thousands)





































Selected ratios

























For the Twelve Months Ended











December 31,











2021


2020


% Change




























Return on average assets





1.37

%

0.73

%

87.67

%








Return on average assets, excluding

















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



1.40


0.77


81.82









Return on average equity





8.40


4.50


86.67









Return on average equity, excluding

















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



8.59


4.79


79.33









Return on average tangible equity (1)




14.89


8.61


72.94









Return on average tangible equity, excluding 

















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



15.22


9.12


66.89









Return on average tangible common equity (1)




16.35


8.94


82.89









Return on average tangible common equity, excluding 
















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



16.71


9.47


76.45









Yield on earning assets (2) 





3.29


3.80


(13.42)









Cost of interest bearing liabilities





0.28


0.63


(55.56)









Net interest spread (2)






3.01


3.17


(5.05)









Net interest margin (2)






3.11


3.37


(7.72)









Efficiency (1) (2)






58.22


56.38


3.26









Average loans to average deposits





78.11


91.66


(14.78)









Annualized net loan charge-offs/average loans




0.02


0.06


(66.67)









Effective income tax rate 





19.74


15.88


24.31



























































































For the Three Months Ended











Dec. 31,


Sept. 30,


June 30,


Mar. 31,


Dec. 31,











2021


2021


2021


2021


2020
























Return on average assets





1.21

%

0.97

%

1.60

%

1.72

%

1.21

%




Return on average assets, excluding

















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



1.21


1.06


1.62


1.74


1.22





Return on average equity





7.56


5.98


9.74


10.33


7.28





Return on average equity, excluding

















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



7.58


6.49


9.88


10.43


7.33





Return on average tangible equity (1)




13.62


10.72


17.04


18.22


13.18





Return on average tangible equity, excluding 

















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



13.66


11.57


17.27


18.39


13.28





Return on average tangible common equity (1)




15.00


11.76


18.67


20.00


14.49





Return on average tangible common equity, excluding 
















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



15.04


12.70


18.92


20.18


14.60





Yield on earning assets (2) 





3.10


3.24


3.32


3.51


3.61





Cost of interest bearing liabilities





0.20


0.25


0.31


0.37


0.45





Net interest spread (2)






2.90


2.99


3.01


3.14


3.16





Net interest margin (2)






2.97


3.08


3.12


3.27


3.31





Efficiency (1) (2) 






61.99


60.52


53.97


56.71


57.06





Average loans to average deposits





72.61


75.46


79.82


85.27


89.64





Annualized net loan charge-offs and recoveries /average loans

0.04


0.03


(0.03)


0.02


0.02





Effective income tax rate 





18.32


19.34


20.85


19.93


18.13





Trust assets, market value at period end




$   5,644,975


$      5,464,159


$      5,480,995


$      5,244,370


$      5,025,565
























(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 sheet


December 31,



September 30,

September 30, 2021

Assets




2021


2020


% Change

2021

to December 31, 2021

Cash and due from banks


$        157,046


$          184,361


(14.8)

$             201,505

(22.1)

Due from banks - interest bearing


1,094,312


721,086


51.8

919,611

19.0

Securities:











Equity securities, at fair value


13,466


13,047


3.2

13,451

0.1


Available-for-sale debt securities, at fair value


3,013,462


1,978,136


52.3

2,986,803

0.9


Held-to-maturity debt securities (fair values of $1,028,452; $768,183










and $978,494, respectively)


1,004,823


731,212


37.4

953,920

5.3



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


(268)


(326)


17.8

(257)

(4.3)


Net held-to-maturity debt securities


1,004,555


730,886


37.4

953,663

5.3



Total securities


4,031,483


2,722,069


48.1

3,953,917

2.0

Loans held for sale


25,277


168,378


(85.0)

32,308

(21.8)

Portfolio loans:










Commercial real estate


5,538,968


5,705,392


(2.9)

5,657,886

(2.1)


Commercial and industrial


1,590,320


2,407,438


(33.9)

1,707,214

(6.8)


Residential real estate 


1,721,378


1,720,961


0.0

1,655,229

4.0


Home equity


605,682


646,387


(6.3)

607,735

(0.3)


Consumer 


277,130


309,055


(10.3)

285,101

(2.8)

Total portfolio loans, net of unearned income


9,733,478


10,789,233


(9.8)

9,913,165

(1.8)

Allowance for credit losses - loans 


(121,622)


(185,827)


34.6

(136,605)

11.0



Net portfolio loans


9,611,856


10,603,406


(9.4)

9,776,560

(1.7)

Premises and equipment, net


229,016


249,421


(8.2)

232,134

(1.3)

Accrued interest receivable


60,844


66,790


(8.9)

61,895

(1.7)

Goodwill and other intangible assets, net


1,151,634


1,163,091


(1.0)

1,154,468

(0.2)

Bank-owned life insurance


350,359


306,038


14.5

349,735

0.2

Other assets


215,298


240,970


(10.7)

209,978

2.5

Total Assets


$  16,927,125


$     16,425,610


3.1

$        16,892,111

0.2













Liabilities










Deposits:











Non-interest bearing demand


$     4,590,895


$       4,070,835


12.8

$          4,531,958

1.3


Interest bearing demand


3,380,056


2,839,536


19.0

3,283,444

2.9


Money market


1,739,750


1,685,927


3.2

1,765,480

(1.5)


Savings deposits


2,562,510


2,214,565


15.7

2,488,180

3.0


Certificates of deposit


1,292,652


1,618,510


(20.1)

1,354,252

(4.5)



Total deposits


13,565,863


12,429,373


9.1

13,423,314

1.1

Federal Home Loan Bank borrowings


183,920


549,003


(66.5)

208,940

(12.0)

Other short-term borrowings


141,893


241,950


(41.4)

152,546

(7.0)

Subordinated debt and junior subordinated debt 


132,860


192,291


(30.9)

167,711

(20.8)



Total borrowings


458,673


983,244


(53.4)

529,197

(13.3)

Accrued interest payable


1,901


4,314


(55.9)

2,495

(23.8)

Other liabilities


207,522


251,942


(17.6)

213,122

(2.6)

Total Liabilities


14,233,959


13,668,873


4.1

14,168,128

0.5













Shareholders' Equity









Preferred stock, no par value; 1,000,000 shares authorized in 2021 and 2020, respectively; 










150,000 shares 6.75% non-cumulative perpetual preferred stock, Series A, 










liquidation preference $150.0 million, issued and outstanding in 2021 and 2020, respectively

144,484


144,484


-

144,484

-

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










2021 and 2020, respectively; 68,081,306, 68,081,306 and 68,081,306 shares










issued, respectively; 62,307,245, 67,254,706 and 63,838,549 shares


141,834


141,834


-

141,834

-


outstanding, respectively









Capital surplus


1,635,642


1,634,815


0.1

1,634,086

0.1

Retained earnings


977,765


831,688


17.6

946,746

3.3

Treasury stock (5,774,061, 826,600 and 4,242,757 shares - at cost, respectively)


(199,759)


(25,949)


(669.8)

(146,102)

(36.7)

Accumulated other comprehensive income (loss)


(5,120)


31,359


(116.3)

4,463

(214.7)

Deferred benefits for directors


(1,680)


(1,494)


(12.4)

(1,528)

(9.9)

Total Shareholders' Equity


2,693,166


2,756,737


(2.3)

2,723,983

(1.1)

Total Liabilities and Shareholders' Equity


$  16,927,125


$     16,425,610


3.1

$        16,892,111

0.2













 

 

WESBANCO, INC.



















Consolidated Selected Financial Highlights













Page 8


(unaudited, dollars in thousands)
















Average balance sheet and
















net interest margin analysis


For the Three Months Ended December 31,




For the Twelve Months Ended December 31,









2021

2020



2021

2020








Average 

Average



Average 

Average



Average 

Average



Average 

Average



Assets





Balance

Rate



Balance

Rate



Balance

Rate



Balance

Rate



Due from banks - interest bearing




$     1,028,014

0.16

%


$          661,696

0.12

%


$        860,249

0.13

%


$          548,078

0.21

%


Loans, net of unearned income (1)




9,839,726

3.93



11,056,512

4.12



10,380,605

4.01



10,874,763

4.28



Securities: (2)





















    Taxable





3,295,240

1.56



2,144,038

2.02



2,966,745

1.70



2,281,905

2.35



    Tax-exempt (3)





696,695

3.05



594,559

3.44



632,187

3.24



616,808

3.49



        Total securities





3,991,935

1.82



2,738,597

2.33



3,598,932

1.97



2,898,713

2.59



Other earning assets 





16,539

4.69



42,797

6.91



25,481

5.04



60,054

6.38



         Total earning assets (3)




14,876,214

3.10

%


14,499,602

3.61

%


14,865,267

3.29

%


14,381,608

3.80

%


Other assets





2,071,448




2,047,159




2,063,110




2,061,096




Total Assets





$  16,947,662




$     16,546,761




$  16,928,377




$     16,442,704

























Liabilities and Shareholders' Equity



















Interest bearing demand deposits




$     3,351,982

0.10

%


$       2,730,976

0.16

%


$     3,193,425

0.11

%


$       2,572,248

0.27

%


Money market accounts 




1,748,900

0.07



1,672,597

0.16



1,760,540

0.10



1,611,135

0.29



Savings deposits





2,521,850

0.04



2,181,804

0.05



2,425,527

0.04



2,084,576

0.09



Certificates of deposit





1,326,789

0.45



1,663,558

0.67



1,457,730

0.52



1,814,693

0.75



    Total interest bearing deposits




8,949,521

0.13



8,248,935

0.23



8,837,222

0.16



8,082,652

0.33



Federal Home Loan Bank borrowings



208,663

1.48



691,183

2.14



343,185

1.80



1,135,934

2.17



Repurchase agreements




138,769

0.10



342,659

0.32



149,001

0.15



357,100

0.48



Subordinated debt and junior subordinated debt 

149,879

3.12



192,200

3.97



180,649

3.61



193,693

4.29



      Total interest bearing liabilities (4)



9,446,832

0.20

%


9,474,977

0.45

%


9,510,057

0.28

%


9,769,379

0.63

%


Non-interest bearing demand deposits



4,601,270




4,084,889




4,452,590




3,781,583




Other liabilities





189,778




241,959




201,393




240,340




Shareholders' equity





2,709,782




2,744,936




2,764,337




2,651,402




Total Liabilities and Shareholders' Equity



$  16,947,662




$     16,546,761




$  16,928,377




$     16,442,704




Taxable equivalent net interest spread




2.90

%



3.16

%



3.01

%



3.17

%


Taxable equivalent net interest margin 




2.97

%



3.31

%



3.11

%



3.37

%












































(1) Gross of allowance for credit losses and net of unearned income.  Includes non-accrual and loans held for sale.  Loan fees included in interest income on loans were $4.7 million and $6.7 million for the three months ended December 31, 2021 and 2020, respectively and were $26.3 million and $16.2 million for the twelve months ended December 31, 2021 and 2020, respectively.  As part of loan fees, PPP loan fees were $4.3 million and $5.7 million for the three months ended December 31, 2021 and 2020, respectively, and were $25.3 million and $13.4 million for the twelve months ended December 31, 2021 and 2020, respectively.  Additionally, loan accretion included in interest income on loans acquired from prior acquisitions was $3.0 million and $4.6 million for the three months ended December 31, 2021 and 2020, respectively, and was $13.3 million and $17.0 million for the twelve months ended December 31, 2021 and 2020, respectively.  


(2) Average yields on available-for-sale securities are calculated based on amortized cost.


(3) Taxable equivalent basis is calculated on tax-exempt securities using a rate of 21% for each period presented.


(4) Accretion on interest bearing liabilities acquired from prior acquisitions was $0.6 million and $1.5 million for the three months ended December 31, 2021 and 2020, respectively, and was $3.1 million and $9.5 million for the twelve months ended December 31, 2021 and 2020, respectively.
























 

 

WESBANCO, INC.










Consolidated Selected Financial Highlights









 Page 9 

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













Quarter Ended

Statement of Income

Dec. 31,


Sept. 30,


June 30,


Mar. 31,


Dec. 31,

Interest and dividend income

2021


2021


2021


2021


2020


Loans, including fees

$          97,432


$          103,206


$          105,968


$          109,358


$          114,582


Interest and dividends on securities:












Taxable 

12,934


13,481


12,900


11,127


10,892



Tax-exempt

4,236


4,063


3,952


3,910


4,059




Total interest and dividends on securities

17,170


17,544


16,852


15,037


14,951


Other interest income 

605


628


507


659


945

          Total interest and dividend income

115,207


121,378


123,327


125,054


130,478

Interest expense











Interest bearing demand deposits

810


815


1,009


1,043


1,099


Money market deposits

315


350


551


578


678


Savings deposits

261


244


261


264


280


Certificates of deposit

1,501


1,726


2,026


2,370


2,797




Total interest expense on deposits

2,887


3,135


3,847


4,255


4,854


Federal Home Loan Bank borrowings

780


1,192


1,781


2,414


3,719


Other short-term borrowings

35


33


40


118


275


Subordinated debt and junior subordinated debt

1,178


1,743


1,804


1,789


1,918




Total interest expense

4,880


6,103


7,472


8,576


10,766

Net interest income 

110,327


115,275


115,855


116,478


119,712


Provision for credit losses

(13,559)


(1,730)


(21,025)


(27,958)


(209)

Net interest income after provision for credit losses

123,886


117,005


136,880


144,436


119,921

Non-interest income











Trust fees

7,441


7,289


7,148


7,631


6,754


Service charges on deposits

6,592


6,050


4,876


4,894


5,671


Electronic banking fees

4,465


5,427


5,060


4,365


4,424


Net securities brokerage revenue

1,579


1,965


1,829


1,524


1,402


Bank-owned life insurance

2,864


2,656


1,707


1,709


1,750


Mortgage banking income

2,872


4,563


7,830


4,264


5,442


Net securities gains (losses)

372


(15)


477


279


691


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

(158)


785


4,014


175


18


Other income

4,682


4,035


3,171


8,367


6,553




Total non-interest income

30,709


32,755


36,112


33,208


32,705

Non-interest expense











Salaries and wages

40,420


39,497


37,435


36,890


39,140


Employee benefits

10,842


10,658


9,268


10,266


10,608


Net occupancy

6,413


6,825


6,427


7,177


6,771


Equipment and software

8,352


7,609


7,281


6,765


6,810


Marketing

2,601


1,848


1,802


2,384


1,675


FDIC insurance 

1,460


1,227


181


1,282


1,278


Amortization of intangible assets

2,834


2,854


2,873


2,896


3,327


Restructuring and merger-related expense

177


4,467


1,222


851


484


Other operating expenses  

15,204


19,716


17,323


17,816


17,976




Total non-interest expense

88,303


94,701


83,812


86,327


88,069

Income before provision for income taxes

66,292


55,059


89,180


91,317


64,557


Provision for income taxes 

12,144


10,651


18,592


18,202


11,703

Net Income

54,148


44,408


70,588


73,115


52,854

Preferred stock dividends

2,531


2,531


2,531


2,531


2,644

Net income available to common shareholders

$          51,617


$            41,877


$            68,057


$            70,584


$            50,210














Taxable equivalent net interest income

$       111,453


$       116,355


$       116,906


$       117,517


$       120,790














Per common share data










Net income per common share - basic

$               0.82


$                0.64


$                1.02


$                1.05


$                0.75

Net income per common share - diluted

0.82


0.64


1.01


1.05


0.75

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

0.82


0.70


1.03


1.06


0.76

Dividends declared

0.33


0.33


0.33


0.33


0.32

Book value (period end)

40.91


40.41


39.96


39.25


38.84

Tangible book value (period end) (1)

22.61


22.51


22.61


22.21


21.75

Average common shares outstanding - basic

63,045,061


64,931,764


66,894,398


67,263,714


67,238,005

Average common shares outstanding - diluted

63,183,411


65,065,848


67,066,592


67,335,418


67,304,442

Period end common shares outstanding

62,307,245


63,838,549


65,970,149


67,282,134


67,254,706

Period end preferred shares outstanding

150,000


150,000


150,000


150,000


150,000

Full time equivalent employees

2,462


2,425


2,459


2,490


2,612














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





(2) Certain items excluded from the calculation consist of after-tax restructuring and merger-related expenses.


















 

 















WESBANCO, INC.












Consolidated Selected Financial Highlights










 Page 10 

(unaudited, dollars in thousands)
















Quarter Ended






Dec. 31,


Sept. 30,


June 30,


Mar. 31,


Dec. 31,


Asset quality data


2021


2021


2021


2021


2020


Non-performing assets:













Troubled debt restructurings - accruing

$         3,746


$           3,707


$           5,799


$           3,563


$           3,927



Non-accrual loans:














Troubled debt restructurings


1,547


1,615


1,664


1,768


1,828




Other non-accrual loans


34,195


34,644


34,548


32,807


35,052




    Total non-accrual loans


35,742


36,259


36,212


34,575


36,880




    Total non-performing loans 


39,488


39,966


42,011


38,138


40,807



Other real estate and repossessed assets

-


293


773


393


549




Total non-performing assets


$       39,488


$         40,259


$         42,784


$         38,531


$         41,356
















Past due loans (1):













Loans past due 30-89 days


$       27,152


$         32,682


$         21,233


$         20,602


$         31,596



Loans past due 90 days or more


7,804


11,252


8,318


12,824


8,846




Total past due loans


$       34,956


$         43,934


$         29,551


$         33,426


$         40,442
















Criticized and classified loans (2):













Criticized loans


$    248,518


$       290,281


$       319,448


$       340,943


$       362,295



Classified loans


116,013


127,022


136,927


114,884


132,650




Total criticized and classified loans

$    364,531


$       417,303


$       456,375


$       455,827


$       494,945
















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

0.28

%

0.33

%

0.21

%

0.19

%

0.29

%

Loans past due 90 days or more / total portfolio loans

0.08


0.11


0.08


0.12


0.08


Non-performing loans / total portfolio loans

0.41


0.40


0.41


0.36


0.38


Non-performing assets / total portfolio loans, other












real estate and repossessed assets


0.41


0.41


0.41


0.36


0.38


Non-performing assets / total assets


0.23


0.24


0.25


0.23


0.25


Criticized and classified loans / total portfolio loans

3.75


4.21


4.41


4.26


4.59
















Allowance for credit losses












Allowance for credit losses - loans


$    121,622


$       136,605


$       140,730


$       160,040


$       185,827


Allowance for credit losses - loan commitments

7,775


7,290


5,766


6,731


9,514


Provision for credit losses


(13,559)


(1,730)


(21,025)


(27,958)


(209)


Net loan and deposit account overdraft charge-offs and recoveries

929


842


(689)


648


524
















Annualized net loan charge-offs and recoveries / average loans

0.04

%

0.03

%

(0.03)

%

0.02

%

0.02

%

Allowance for credit losses - loans / total portfolio loans

1.25

%

1.38

%

1.36

%

1.50

%

1.72

%

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

1.27

%

1.42

%

1.43

%

1.62

%

1.85

%

Allowance for credit losses - loans / non-performing loans

3.08

x

3.42

x

3.35

x

4.20

x

4.55

x

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












loans past due 


1.63

x

1.63

x

1.97

x

2.24

x

2.29

x















































Dec. 31,


Sept. 30,


June 30,


Mar. 31,


Dec. 31,






2021


2021


2021


2021


2020


Capital ratios












Tier I leverage capital


10.02

%

10.10

%

10.42

%

10.74

%

10.51

%

Tier I risk-based capital


14.05


14.18


15.15


14.95


14.72


Total risk-based capital


15.91


16.38


17.68


17.58


17.58


Common equity tier 1 capital ratio (CET 1)

12.77


12.91


13.83


13.65


13.40


Average shareholders' equity to average assets

15.99


16.28


16.44


16.65


16.59


Tangible equity to tangible assets (4)


9.84


10.04


10.34


10.30


10.52


Tangible common equity to tangible assets (4)

8.92


9.12


9.43


9.39


9.58






























(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 $162.7 million of PPP loans as of December 31, 2021.










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






















 

 

WESBANCO, INC.















Non-GAAP Financial Measures












Page 11


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






Three Months Ended


Year to Date 






Dec. 31,


Sept. 30,


June 30,


Mar. 31,


Dec. 31,


Dec. 31,


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

2021


2021


2021


2021


2020


2021

2020


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















Net income available to common shareholders

$         51,617


$           41,877


$           68,057


$           70,584


$           50,210


$           232,135

$         119,400



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

140


3,529


965


672


383


5,306

7,683



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

51,757


45,406


69,022


71,256


50,593


237,441

127,083




















Average total assets


$ 16,947,662


$    17,057,793


$    17,042,147


$    16,636,258


$    16,546,761


$     16,928,377

$    16,442,704



















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

1.21%


1.06%


1.62%


1.74%


1.22%


1.40%

0.77%



















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















Net income available to common shareholders

$         51,617


$           41,877


$           68,057


$           70,584


$           50,210


$           232,135

$         119,400



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

140


3,529


965


672


383


5,306

7,683



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

51,757


45,406


69,022


71,256


50,593


237,441

127,083




















Average total shareholders' equity

$   2,709,782


$      2,777,306


$      2,801,455


$      2,770,416


$      2,744,936


$       2,764,337

$      2,651,402



















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

7.58%


6.49%


9.88%


10.43%


7.33%


8.59%

4.79%



















Return on average tangible equity:















Net income available to common shareholders

$         51,617


$           41,877


$           68,057


$           70,584


$           50,210


$           232,135

$         119,400



Plus: amortization of intangibles (1)

2,239


2,255


2,270


2,288


2,628


9,051

10,595



Net income available to common shareholders before amortization of intangibles 

53,856


44,132


70,327


72,872


52,838


241,186

129,995




















Average total shareholders' equity

2,709,782


2,777,306


2,801,455


2,770,416


2,744,936


2,764,337

2,651,402



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

(1,141,307)


(1,143,522)


(1,145,882)


(1,148,171)


(1,150,184)


(1,144,698)

(1,141,528)



Average tangible equity

$   1,568,475


$      1,633,784


$      1,655,573


$      1,622,245


$      1,594,752


$       1,619,639

$      1,509,874



















Return on average tangible equity (annualized)  (2)

13.62%


10.72%


17.04%


18.22%


13.18%


14.89%

8.61%




















Average tangible common equity

$   1,423,991


$      1,489,300


$      1,511,089


$      1,477,736


$      1,450,243


$       1,475,155

$      1,453,363


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

15.00%


11.76%


18.67%


20.00%


14.49%


16.35%

8.94%



















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















Net income available to common shareholders

$         51,617


$           41,877


$           68,057


$           70,584


$           50,210


$           232,135

$         119,400



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

140


3,529


965


672


383


5,306

7,683



Plus: amortization of intangibles  (1)

2,239


2,255


2,270


2,288


2,628


9,051

10,595



Net income available to common shareholders before amortization of intangibles 















     and excluding after-tax restructuring and merger-related expenses

53,996


47,661


71,292


73,544


53,221


246,492

137,678




















Average total shareholders' equity

2,709,782


2,777,306


2,801,455


2,770,416


2,744,936


2,764,337

2,651,402



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

(1,141,307)


(1,143,522)


(1,145,882)


(1,148,171)


(1,150,184)


(1,144,698)

(1,141,528)



Average tangible equity

$   1,568,475


$      1,633,784


$      1,655,573


$      1,622,245


$      1,594,752


$       1,619,639

$      1,509,874



















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

13.66%


11.57%


17.27%


18.39%


13.28%


15.22%

9.12%




















Average tangible common equity

$   1,423,991


$      1,489,300


$      1,511,089


$      1,477,736


$      1,450,243


$       1,475,155

$      1,453,363


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

15.04%


12.70%


18.92%


20.18%


14.60%


16.71%

9.47%



















Efficiency ratio:

















Non-interest expense


$         88,303


$           94,701


$           83,812


$           86,327


$           88,069


$           353,143

$         354,845



Less: restructuring and merger-related expense

(177)


(4,467)


(1,222)


(851)


(484)


(6,717)

(9,725)



Non-interest expense excluding restructuring and merger-related expense

88,126


90,234


82,590


85,476


87,585


346,426

345,120




















Net interest income on a fully taxable equivalent basis

111,453


116,355


116,906


117,517


120,790


462,229

483,999



Non-interest income


30,709


32,755


36,112


33,208


32,705


132,785

128,185



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

$       142,162


$         149,110


$         153,018


$         150,725


$         153,495


$           595,014

$         612,184



Efficiency ratio


61.99%


60.52%


53.97%


56.71%


57.06%


58.22%

56.38%




































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















Net income available to common shareholders

$         51,617


$           41,877


$           68,057


$           70,584


$           50,210


$           232,135

$         119,400



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

140


3,529


965


672


383


5,306

7,683


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

$         51,757


$           45,406


$           69,022


$           71,256


$           50,593


$           237,441

$         127,083




































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















Net income per common share - diluted

$              0.82


$               0.64


$               1.01


$               1.05


$               0.75


$                  3.53

$               1.77



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

-


0.06


0.02


0.01


0.01


0.09

0.11


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

$              0.82


$               0.70


$               1.03


$               1.06


$               0.76


$                  3.62

$               1.88








































Period End









Dec. 31,


Sept. 30,


June 30,


Mar. 31,


Dec. 31, 









2021


2021


2021


2021


2020





Tangible book value per share:















Total shareholders' equity

$   2,693,166


$      2,723,983


$      2,780,836


$      2,785,522


$      2,756,737






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

(1,140,111)


(1,142,350)


(1,144,604)


(1,146,874)


(1,149,161)






Less: preferred shareholder's equity

(144,484)


(144,484)


(144,484)


(144,484)


(144,484)






Tangible common equity

1,408,571


1,437,149


1,491,748


1,494,164


1,463,092























Common shares outstanding

62,307,245


63,838,549


65,970,149


67,282,134


67,254,706






















Tangible book value per share

$           22.61


$             22.51


$             22.61


$             22.21


$             21.75






















Tangible common equity to tangible assets:















Total shareholders' equity

$   2,693,166


$      2,723,983


$      2,780,836


$      2,785,522


$      2,756,737






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

(1,140,111)


(1,142,350)


(1,144,604)


(1,146,874)


(1,149,161)






Tangible equity


1,553,055


1,581,633


1,636,232


1,638,648


1,607,576






Less: preferred shareholder's equity

(144,484)


(144,484)


(144,484)


(144,484)


(144,484)






Tangible common equity

1,408,571


1,437,149


1,491,748


1,494,164


1,463,092























Total assets


16,927,125


16,892,111


16,966,867


17,057,788


16,425,610






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

(1,140,111)


(1,142,350)


(1,144,604)


(1,146,874)


(1,149,161)






Tangible assets


$ 15,787,014


$    15,749,761


$    15,822,263


$    15,910,914


$    15,276,449






















Tangible equity to tangible assets

9.84%


10.04%


10.34%


10.30%


10.52%






















Tangible common equity to tangible assets

8.92%


9.12%


9.43%


9.39%


9.58%







































(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.































 

 

WESBANCO, INC.















Additional 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 






Dec. 31,


Sept. 30,


June 30,


Mar. 31,


Dec. 31,


Dec. 31,


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

2021


2021


2021


2021


2020


2021

2020


Pre-tax, pre-provision income:















Income before provision for income taxes

$         66,292


$           55,059


$           89,180


$           91,317


$           64,557


$       301,849

$         145,079



Add: provision for credit losses

(13,559)


(1,730)


(21,025)


(27,958)


(209)


(64,274)

107,741


Pre-tax, pre-provision income


$         52,733


$           53,329


$           68,155


$           63,359


$           64,348


$       237,575

$         252,820



















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















Income before provision for income taxes

$         66,292


$           55,059


$           89,180


$           91,317


$           64,557


$       301,849

$         145,079



Add: provision for credit losses

(13,559)


(1,730)


(21,025)


(27,958)


(209)


(64,274)

107,741



Add: restructuring and merger-related expenses

177


4,467


1,222


851


484


6,717

9,725


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

$         52,910


$           57,796


$           69,377


$           64,210


$           64,832


$       244,292

$         262,545



















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















Income before provision for income taxes

$         66,292


$           55,059


$           89,180


$           91,317


$           64,557


$       301,849

$         145,079



Add: provision for credit losses

(13,559)


(1,730)


(21,025)


(27,958)


(209)


(64,274)

107,741



Add: restructuring and merger-related expenses

177


4,467


1,222


851


484


6,717

9,725


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

52,910


57,796


69,377


64,210


64,832


244,292

262,545




















Average total assets


$ 16,947,662


$    17,057,793


$    17,042,147


$    16,636,258


$    16,546,761


$ 16,928,377

$    16,442,704



















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

1.24%


1.34%


1.63%


1.57%


1.56%


1.44%

1.60%



















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















Income before provision for income taxes

$         66,292


$           55,059


$           89,180


$           91,317


$           64,557


$       301,849

$         145,079



Add: provision for credit losses

(13,559)


(1,730)


(21,025)


(27,958)


(209)


(64,274)

107,741



Add: restructuring and merger-related expenses

177


4,467


1,222


851


484


6,717

9,725


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

52,910


57,796


69,377


64,210


64,832


244,292

262,545




















Average total shareholders' equity

$   2,709,782


$      2,777,306


$      2,801,455


$      2,770,416


$      2,744,936


$   2,764,337

$      2,651,402



















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

7.75%


8.26%


9.93%


9.40%


9.40%


8.84%

9.90%



















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















Income before provision for income taxes

$         66,292


$           55,059


$           89,180


$           91,317


$           64,557


$       301,849

$         145,079



Add: provision for credit losses

(13,559)


(1,730)


(21,025)


(27,958)


(209)


(64,274)

107,741



Add: amortization of intangibles

2,834


2,854


2,873


2,896


3,327


11,457

13,411



Add: restructuring and merger-related expenses

177


4,467


1,222


851


484


6,717

9,725


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

55,744


60,650


72,250


67,106


68,159


255,749

275,956




















Average total shareholders' equity

2,709,782


2,777,306


2,801,455


2,770,416


2,744,936


2,764,337

2,651,402



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

(1,141,307)


(1,143,522)


(1,145,882)


(1,148,171)


(1,150,184)


(1,144,698)

(1,141,528)



Average tangible equity

$   1,568,475


$      1,633,784


$      1,655,573


$      1,622,245