WesBanco Announces Fourth Quarter 2020 Financial Results

Company Release - 1/26/2021 4:30 PM ET

WHEELING, W.Va., Jan. 26, 2021 /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, 2020.  Net income available to common shareholders for the three months ended December 31, 2020 was $50.2 million, with diluted earnings per share of $0.75, compared to $36.4 million and $0.60 per diluted share, respectively, for the fourth quarter of 2019.  For the twelve months ended December 31, 2020, reflecting the impact from the 2020 adoption of the new Current Expected Credit Losses ("CECL") accounting standard, net income available to common shareholders was $119.4 million, or $1.77 per diluted share, compared to $158.9 million, or $2.83 per diluted share, for the 2019 period.  Net income available to common shareholders excluding after-tax restructuring and merger-related expenses for the three months ended December 31, 2020, was $50.6 million, or $0.76 per diluted share, as compared to $45.5 million and $0.75 per diluted share, respectively, in the prior year quarter (non-GAAP measures).  On the same basis, net income available to common shareholders for the twelve months ended December 31, 2020 was $127.1 million, or $1.88 per diluted share, as compared to $171.8 million, or $3.06 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,




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 available to common
shareholders (Non-GAAP)(1)


$      50,593


$       0.76


$      45,478


$       0.75


$    127,083


$       1.88


$    171,827


$       3.06

Less: After tax restructuring and merger-
related expenses(2)


(383)


(0.01)


(9,102)


(0.15)


(7,683)


(0.11)


(12,954)


(0.23)

Net income available to common
shareholders (GAAP)


$      50,210


$       0.75


$      36,376


$       0.60


$    119,400


$       1.77


$    158,873


$       2.83

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

(2)For 2020, after tax merger-related expenses totaled $5.1 million, and after tax restructuring expenses from financial center optimization totaled $2.6 million.

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 December 31, 2020, pre-tax, pre-provision income, excluding restructuring and merger-related expenses, increased 14.2% year-over-year to $64.8 million compared to $56.8 million for the prior period.  On the same basis, pre-tax, pre-provision income, for the twelve months ended December 31, 2020, increased 18.9% year-over-year to $262.5 million compared to $220.8 million last year.  In addition, on the same basis, the return on average assets was 1.56% for the three month and 1.60% for the twelve month periods ending December 31, 2020.  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 December 31, 2020:

  • WesBanco is a well-capitalized financial institution with solid liquidity and a strong balance sheet
  • Strong year-over-year growth in pre-tax, pre-provision income (non-GAAP measure) for both the quarter and annual periods
  • Total loan growth was 5.1% year-over-year, driven by WesBanco's support of small businesses impacted by the pandemic
    • Total loan growth includes nearly 6,850 loans remaining from the first rounds of the Small Business Administration's Payroll Protection Program ("SBA PPP") totaling approximately $726.3 million
    • Commercial & industrial loan growth was 2.2% year-over-year, excluding SBA PPP loans
  • Deposit growth, excluding certificates of deposit, was 20.8% year-over-year, driven by growth in demand deposits
  • Trust assets under management totaled a record $5.0 billion, driven by both market appreciation and organic growth
  • Continued expense management demonstrated by a year-to-date efficiency ratio of 56.38% (non-GAAP measure)
  • Key credit quality metrics such as non-performing assets, past due loans, and net loan charge-offs, as percentages of total portfolio loans, have remained at low levels and favorable to peer bank averages, those with total assets between $10 billion and $25 billion (based upon the four quarters prior to the current earnings period)
  • Subsequent to year-end, on January 22, 2021, WesBanco Bank completed its financial center optimization strategy announced during August 2020 through the consolidation of 21 financial centers into nearby locations and the conversion of one location to drive-up only

Todd F. Clossin, President and Chief Executive Officer of WesBanco, commented, "2020 was a successful year for WesBanco, as measured by the more than ten thousand individuals, families, businesses, and non-profits we assisted as they navigated through the pandemic.  I am extremely proud of how our employees have responded this past year, from keeping our financial centers open throughout, working around the clock closing PPP loans to our commercial customers, and providing charitable donations to support those in need.  These actions speak loudly to our community bank roots." 

Mr. Clossin added, "Solid execution on our well-defined, long-term strategies allowed us to generate record annual pre-tax, pre-provision earnings of $263 million, when excluding restructuring and merger-related costs, during 2020.  In addition, we remained a well-capitalized financial institution, completed a preferred stock offering during August 2020 that was over-subscribed, and increased our allowance for credit losses.  Through our diversified growth engines supported by our strong teams and a continued focus on operating costs, we believe we are well-positioned for long-term success, and remain positive about our opportunities for the upcoming year."

Financial Center Optimization Strategy
Reflecting the current operating environment and increased utilization of digital services, WesBanco previously announced a plan to accelerate its financial center optimization strategy across Indiana, Kentucky, Ohio, Pennsylvania, and West Virginia.  On October 30, two centers were consolidated and another converted to drive-up only.  Recently, on January 22, 2021, 21 additional centers were consolidated into nearby locations and another converted to drive-up only.  The anticipated cost savings of approximately $6.0 to $6.5 million, approximately half of which will be utilized for growth and digital infrastructure initiatives, remain on plan to be phased-in during the first half of 2021.

Balance Sheet
Portfolio loans of $10.8 billion as of December 31, 2020 increased 5.1% when compared to the prior year period due primarily to participation in the SBA PPP.  During the fourth quarter, approximately 331 customers applied for and received forgiveness of their SBA PPP loans totaling $113.0 million.

Total deposits increased 13.0% year-over-year to $12.4 billion due primarily to CARES Act stimulus funds received and increased personal savings, which more than offset a $0.4 million reduction in certificates of deposit.  Deposits, excluding CDs, increased 20.8% year-over-year, driven by a 25.8% increase in total demand deposits, which represent approximately 56% of total deposits.

Credit Quality
As of December 31, 2020, total loans past due, 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.  In addition, annualized net loan charge-offs to average loans remained low for the quarter and year-to-date periods at two and six basis points, respectively.  Pandemic-related loan deferrals, under the CARES Act, have declined to $171.1 million, or 1.6% of total loans, as of December 31, with approximately $150 million of this total related to the hospitality industry.

Reflecting improved macroeconomic factors in the CECL calculation, the allowance for credit losses specific to total portfolio loans at December 31, 2020 was $185.8 million, or 1.72% of total loans; or, when excluding SBA PPP loans, 1.85% 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 0.37% of total loans.  The provision for credit losses was a negative $0.2 million for the quarter ended December 31, 2020.

Criticized and classified loan balances increased to 4.59% of total portfolio loans due to the fourth quarter net downgrades of $133.3 million of hospitality loans as a result of reduced occupancy and debt service coverage from the current pandemic-driven environment.  These downgraded loans may have received current or prior CARES Act qualifying loan deferrals, and had an average loan-to-value of approximately 60%, the majority of which are pre-pandemic, as well as strong guarantor support.  The Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act ("Economic Aid Act"), which became law on December 27, 2020, added a new Second Draw PPP loan program that provides additional assistance to borrowers who previously received a SBA PPP loan.  Included in this new authorization, hotels may be eligible for a forgivable loan up to three and one half times their average monthly payroll.

Net Interest Margin and Income
The net interest margin of 3.31% for the fourth quarter of 2020 was consistent with the third quarter's 3.31% but, decreased 24 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 throughout the year, which helped to lower deposit funding costs 40 basis points year-over-year to 23 basis points for the fourth quarter of 2020.  Further, we lowered the cost of borrowings 29 basis points year-over-year as we reduced fourth quarter average FHLB borrowings by $0.5 billion, or 41.8%, year-over-year to $0.7 billion, which have a remaining average life of less than one year.  Accretion from acquisitions benefited the fourth quarter net interest margin by 16 basis points, as compared to 22 basis points in the prior year period and 18 basis points during the third quarter of 2020.  Lastly, the funding of SBA PPP loans benefited the fourth quarter of 2020 net interest margin by a net two basis points, and will positively impact the net interest margin as the loans are forgiven during the next couple of quarters.

Net interest income increased $12.7 million, or 11.9%, during the fourth quarter of 2020, as compared to the same quarter of 2019, reflecting a 19.8% increase in average total earning assets driven by the OLBK acquisition, partially offset by the lower loan yields due to repricing of existing loans and lower new offered rates in the current market environment, and lower related accretion from purchase accounting.  For the twelve months ended December 31, 2020, net interest income increased $79.6 million, or 19.9%, despite an overall lower net interest margin, due to higher average total earning assets as discussed for the three-month period comparison, primarily from the OLBK acquisition.

Non-Interest Income
For the fourth quarter of 2020, non-interest income of $32.7 million increased $1.9 million, or 6.1%, from the fourth quarter of 2019, driven primarily by mortgage banking income, which was partially offset by lower service charges on deposits.  Reflecting the low interest rate environment and organic growth, mortgage banking fees increased $2.5 million, or 84.0%, compared to the prior year period, as residential mortgage origination dollar volume increased approximately 75% year-over-year, with roughly 65% of those originations sold into the secondary market.  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. 

Non-interest income, for the twelve months ended December 31, 2020, increased $11.5 million, or 9.8%, to $128.2 million due primarily to the items discussed above, as well as higher commercial customer loan swap-related income and lower electronic banking fees due to the limitation on interchange fees for debit card processing.  Loan swap-related income for the year was $6.1 million, an increase of $2.7 million year-over-year, reflecting commercial loan customer demand in the current rate environment.  The limitation on interchange fees, 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 $5.4 million as compared to the prior year.

Non-Interest Expense
Total operating expenses continued to be well-controlled through company-wide efforts to effectively manage discretionary costs, employee headcount, and marketing expenses.  Despite an approximate 25% increase in size due to the OLBK acquisition, as well as the significantly lower interest rate environment, these strong efforts are demonstrated by efficiency ratios of 57.06% and 56.38% for the three-month and twelve-month periods ending December 31, 2020, respectively.  Excluding restructuring and merger-related expenses, non-interest expense for the three months ended December 31, 2020 increased $6.6 million, or 8.1%, to $87.6 million compared to the prior year period, primarily due to additional staffing and financial center locations from the OLBK acquisition and the mid-year annual salary increases, partially offset by discretionary cost controls resulting from the pandemic and planned cost savings from the OLBK merger. 

On a similar basis, non-interest expense during the twelve months of 2020 increased $49.3 million, or 16.7%, compared to the prior year period, primarily due to the reasons as discussed for the three-month period.  In addition, FDIC insurance expense increased $5.8 million, or 295.4%, due to a higher assessment rate associated with our larger asset level, as well as the recording of a $3.1 million assessment credit in the prior year period. 

Capital
WesBanco continues to maintain what we believe are strong regulatory capital ratios, enhanced by a $150 million preferred stock capital raise during August 2020, 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, 2020, Tier I leverage was 10.51%, Tier I risk-based capital ratio was 14.72%, common equity Tier 1 capital ratio ("CET 1") was 13.40%, and total risk-based capital was 17.57%. 

Conference Call and Webcast
WesBanco will host a conference call to discuss the Company's financial results for the fourth quarter of 2020 at 10:00 a.m. ET on Wednesday, January 27, 2021.  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 10150966.  The replay will begin at approximately 12:00 p.m. ET on January 27, and end at 12 a.m. ET on February 10.  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 quarters ended March 31, June 30, and September 30, 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's March 31, June 30, and September 30, 2020 Quarterly Reports 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.

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 $5.0 billion of assets under management (as of December 31, 2020).  WesBanco's banking subsidiary, WesBanco Bank, Inc., operates 212 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

2020


2019


% Change


2020


2019


% Change


Loans, including fees

$          114,582


$             105,879


8.2


$          465,677


$             393,166


18.4


Interest and dividends on securities:














Taxable 

10,892


16,586


(34.3)


53,594


65,648


(18.4)



Tax-exempt

4,059


4,563


(11.0)


16,999


20,006


(15.0)




Total interest and dividends on securities

14,951


21,149


(29.3)


70,593


85,654


(17.6)


Other interest income 

945


1,281


(26.2)


5,007


5,433


(7.8)

          Total interest and dividend income

130,478


128,309


1.7


541,277


484,253


11.8

Interest expense













Interest bearing demand deposits

1,099


4,054


(72.9)


7,069


16,805


(57.9)


Money market deposits

678


2,143


(68.4)


4,616


8,024


(42.5)


Savings deposits

280


935


(70.1)


1,802


2,995


(39.8)


Certificates of deposit

2,797


3,800


(26.4)


13,562


15,631


(13.2)




Total interest expense on deposits

4,854


10,932


(55.6)


27,049


43,455


(37.8)


Federal Home Loan Bank borrowings

3,719


7,279


(48.9)


24,701


26,548


(7.0)


Other short-term borrowings

275


1,009


(72.7)


1,729


5,401


(68.0)


Subordinated debt and junior subordinated debt 

1,918


2,125


(9.7)


8,318


8,945


(7.0)




Total interest expense

10,766


21,345


(49.6)


61,797


84,349


(26.7)

Net interest income 

119,712


106,964


11.9


479,480


399,904


19.9


Provision for credit losses

(209)


1,824


 NM 


107,741


11,198


 NM 

Net interest income after provision for credit losses

119,921


105,140


14.1


371,739


388,706


(4.4)

Non-interest income













Trust fees

6,754


6,699


0.8


26,335


26,579


(0.9)


Service charges on deposits

5,671


7,171


(20.9)


21,943


26,974


(18.7)


Electronic banking fees

4,424


4,336


2.0


17,524


22,634


(22.6)


Net securities brokerage revenue

1,402


1,393


0.6


6,189


6,990


(11.5)


Bank-owned life insurance

1,750


1,882


(7.0)


7,359


5,913


24.5


Mortgage banking income

5,442


2,957


84.0


22,736


8,219


176.6


Net securities gains

691


520


32.9


4,268


4,320


(1.2)


Net gain on other real estate owned and other assets

18


61


(70.5)


103


732


(85.9)


Other income

6,553


5,819


12.6


21,728


14,355


51.4




Total non-interest income

32,705


30,838


6.1


128,185


116,716


9.8

Non-interest expense













Salaries and wages

39,140


36,984


5.8


153,166


132,485


15.6


Employee benefits

10,608


9,894


7.2


41,723


39,313


6.1


Net occupancy

6,771


6,162


9.9


27,580


22,505


22.6


Equipment 

6,810


5,570


22.3


24,801


20,494


21.0


Marketing

1,675


2,059


(18.6)


5,957


6,062


(1.7)


FDIC insurance 

1,278


668


91.3


7,734


1,956


295.4


Amortization of intangible assets

3,327


2,916


14.1


13,411


10,340


29.7


Restructuring and merger-related expense

484


11,522


(95.8)


9,725


16,397


(40.7)


Other operating expenses  

17,976


16,781


7.1


70,748


62,656


12.9




Total non-interest expense

88,069


92,556


(4.8)


354,845


312,208


13.7

Income before provision for income taxes

64,557


43,422


48.7


145,079


193,214


(24.9)


Provision for income taxes 

11,703


7,046


66.1


23,035


34,341


(32.9)

Net Income

52,854


36,376


45.3


122,044


158,873


(23.2)

Preferred stock dividends

2,644


-


100.0


2,644


-


100.0

Net income available to common shareholders

$             50,210


$               36,376


38.0


$          119,400


$             158,873


(24.8)































Taxable equivalent net interest income

$          120,790


$          108,177


11.7


$          483,999


$          405,222


19.4
















Per common share data












Net income per common share - basic

$                 0.75


$                   0.60


25.0


$                 1.78


$                   2.83


(37.1)

Net income per common share - diluted

0.75


0.60


25.0


1.77


2.83


(37.5)

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

0.76


0.75


1.3


1.88


3.06


(38.6)

Dividends declared

0.32


0.31


3.2


1.28


1.24


3.2

Book value (period end)

38.84


38.24


1.6


38.84


38.24


1.6

Tangible book value (period end) (1)

21.75


21.55


0.9


21.75


21.55


-

Average common shares outstanding - basic

67,238,005


60,461,325


11.2


67,260,796


56,108,084


19.9

Average common shares outstanding - diluted

67,304,442


60,562,366


11.1


67,310,584


56,214,364


19.7

Period end common shares outstanding

67,254,706


67,824,428


(0.8)


67,254,706


67,824,428


(0.8)

Period end preferred shares outstanding

150,000


-


100.0


150,000


-


100.0
















(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,










2020


2019


% Change


























Return on average assets





0.73

%

1.24

%

(41.13)

%







Return on average assets, excluding
















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

0.77


1.34


(42.54)








Return on average equity





4.50


7.49


(39.92)








Return on average equity, excluding
















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

4.79


8.11


(40.94)








Return on average tangible equity (1)




8.61


14.01


(38.54)








Return on average tangible equity, excluding 
















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

9.12


15.10


(39.60)








Return on average tangible common equity (1)




8.94


14.01


(36.19)








Return on average tangible common equity, excluding 














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

9.47


15.10


(37.28)








Yield on earning assets (2) 





3.80


4.37


(13.04)








Cost of interest bearing liabilities




0.63


1.05


(40.00)








Net interest spread (2)





3.17


3.32


(4.52)








Net interest margin (2)





3.37


3.62


(6.91)








Efficiency (1) (2)






56.38


56.68


(0.53)








Average loans to average deposits




91.66


88.59


3.47








Annualized net loan charge-offs/average loans




0.06


0.09


(33.33)








Effective income tax rate 





15.88


17.77


(10.64)






















































































For the Quarter Ended










Dec. 31,


Sept. 30,


June 30,


Mar. 31,


Dec. 31,










2020


2020


2020


2020


2019






















Return on average assets





1.21

%

0.98

%

0.11

%

0.60

%

1.04

%



Return on average assets, excluding
















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

1.22


1.05


0.12


0.70


1.30




Return on average equity





7.28


6.17


0.69


3.63


6.20




Return on average equity, excluding
















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

7.33


6.60


0.75


4.26


7.75




Return on average tangible equity (1)




13.18


11.56


1.98


7.07


11.53




Return on average tangible equity, excluding 
















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

13.28


12.31


2.08


8.18


14.24




Return on average tangible common equity (1)




14.49


12.21


1.98


7.07


11.53




Return on average tangible common equity, excluding 






.








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

14.60


13.00


2.08


8.18


14.24




Yield on earning assets (2) 





3.61


3.66


3.75


4.19


4.25




Cost of interest bearing liabilities




0.45


0.53


0.63


0.91


0.99




Net interest spread (2)





3.16


3.13


3.12


3.28


3.26




Net interest margin (2)





3.31


3.31


3.32


3.54


3.55




Efficiency (1) (2) 






57.06


55.23


55.57


57.69


58.29




Average loans to average deposits




89.64


90.88


91.87


94.61


90.78




Annualized net loan charge-offs and recoveries /average loans

0.02


(0.00)


0.07


0.18


0.20




Effective income tax rate 





18.13


15.66


0.93


13.40


16.23




Trust assets, market value at period end




$     5,025,565


$        4,649,054


$        4,487,042


$        4,082,141


$        4,719,966






















(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


December 31,



September 30,

September 30, 2020

Assets



2020


2019


% Change

2020

to December 31, 2020

Cash and due from banks


$           184,361


$        182,905


0.8

$              215,982

(14.6)

Due from banks - interest bearing


721,086


51,891


 NM 

544,284

32.5

Securities:











Equity securities, at fair value


13,047


12,343


5.7

12,516

4.2


Available-for-sale debt securities, at fair value


1,978,136


2,393,558


(17.4)

2,045,924

(3.3)


Held-to-maturity debt securities (fair values of $768,183; $874,523 










and $782,401, respectively)


731,212


851,753


(14.2)

746,767

(2.1)



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


(326)


-


(100.0)

(461)

29.3


Net held-to-maturity debt securities


730,886


851,753


(14.2)

746,306

(2.1)



Total securities


2,722,069


3,257,654


(16.4)

2,804,746

(2.9)

Loans held for sale


168,378


43,013


291.5

134,151

25.5

Portfolio loans:










Commercial real estate


5,705,392


5,725,008


(0.3)

5,708,648

(0.1)


Commercial and industrial


2,407,438


1,644,699


46.4

2,507,235

(4.0)


Residential real estate 


1,720,961


1,873,647


(8.1)

1,798,019

(4.3)


Home equity


646,387


649,678


(0.5)

647,052

(0.1)


Consumer 


309,055


374,953


(17.6)

328,592

(5.9)

Total portfolio loans, net of unearned income


10,789,233


10,267,985


5.1

10,989,546

(1.8)

Allowance for credit losses - loans  (1)


(185,827)


(52,429)


(254.4)

(185,109)

(0.4)



Net portfolio loans


10,603,406


10,215,556


3.8

10,804,437

(1.9)

Premises and equipment, net


249,421


261,014


(4.4)

248,491

0.4

Accrued interest receivable


66,790


43,648


53.0

65,023

2.7

Goodwill and other intangible assets, net


1,163,091


1,149,153


1.2

1,165,566

(0.2)

Bank-owned life insurance


306,038


299,516


2.2

304,288

0.6

Other assets


240,970


215,762


11.7

265,172

(9.1)

Total Assets


$    16,425,610


$ 15,720,112


4.5

$       16,552,140

(0.8)













Liabilities









Deposits:











Non-interest bearing demand


$        4,070,835


$      3,178,270


28.1

$           4,073,305

(0.1)


Interest bearing demand


2,839,536


2,316,855


22.6

2,633,601

7.8


Money market


1,685,927


1,518,314


11.0

1,619,410

4.1


Savings deposits


2,214,565


1,934,647


14.5

2,167,597

2.2


Certificates of deposit


1,618,510


2,055,920


(21.3)

1,707,512

(5.2)



Total deposits


12,429,373


11,004,006


13.0

12,201,425

1.9

Federal Home Loan Bank borrowings


549,003


1,415,615


(61.2)

794,621

(30.9)

Other short-term borrowings


241,950


282,362


(14.3)

381,909

(36.6)

Subordinated debt and junior subordinated debt 


192,291


199,869


(3.8)

192,150

0.1



Total borrowings


983,244


1,897,846


(48.2)

1,368,680

(28.2)

Accrued interest payable


4,314


8,077


(46.6)

5,014

(14.0)

Other liabilities


251,942


216,262


16.5

244,055

3.2

Total Liabilities


13,668,873


13,126,191


4.1

13,819,174

(1.1)













Shareholders' Equity









Preferred stock, no par value; 1,000,000 shares authorized in 2020 and 2019, respectively; 









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










liquidation preference $150.0 million, issued and outstanding at December 31, 2020










and 0 shares issued and outstanding at December 31, 2019, respectively.


144,484


-


100.0

144,529

(0.0)

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










2020 and 2019, respectively; 68,081,306,  68,078,116 and 68,081,306 shares










issued, respectively; 67,254,706, 67,824,428 and 67,216,012 shares


141,834


141,827


0.0

141,834

-


outstanding, respectively









Capital surplus


1,634,815


1,636,966


(0.1)

1,634,172

0.0

Retained earnings


831,688


824,694


0.8

802,892

3.6

Treasury stock ( 826,600, 253,688 and 865,294 shares - at cost, respectively)


(25,949)


(9,463)


(174.2)

(27,403)

5.3

Accumulated other comprehensive income


31,359


1,201


 NM 

38,301

(18.1)

Deferred benefits for directors


(1,494)


(1,304)


(14.6)

(1,359)

(9.9)

Total Shareholders' Equity


2,756,737


2,593,921


6.3

2,732,966

0.9

Total Liabilities and Shareholders' Equity


$    16,425,610


$ 15,720,112


4.5

$       16,552,140

(0.8)

























(1) Allowance for credit losses - loans as of December 31, 2020 and September 30, 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)


















Average balance sheet and



















net interest margin analysis




For the Three Months Ended December 31,




For the Twelve Months Ended December 31,








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



$          661,696

0.12

%


$            67,820

2.00

%


$               548,078

0.21

%


$           71,312

2.41

%

Loans, net of unearned income (1)



11,056,512

4.12



8,842,437

4.75



10,874,763

4.28



7,991,107

4.92


Securities: (2)




















    Taxable





2,144,038

2.02



2,474,024

2.68



2,281,905

2.35



2,366,631

2.77


    Tax-exempt (3)





594,559

3.44



655,443

3.52



616,808

3.49



722,388

3.51


        Total securities





2,738,597

2.33



3,129,467

2.86



2,898,713

2.59



3,089,019

2.95


Other earning assets 





42,797

6.91



59,750

6.31



60,054

6.38



53,919

6.89


         Total earning assets (3)



14,499,602

3.61

%


12,099,474

4.25

%


14,381,608

3.80

%


11,205,357

4.37

%

Other assets





2,047,159




1,819,956




2,061,096




1,648,563



Total Assets





$   16,546,761




$   13,919,430




$        16,442,704




$  12,853,920























Liabilities and Shareholders' Equity


















Interest bearing demand deposits



$        2,730,976

0.16

%


$        2,224,423

0.72

%


$            2,572,248

0.27

%


$      2,155,211

0.78

%

Money market accounts 




1,672,597

0.16



1,291,999

0.66



1,611,135

0.29



1,165,346

0.69


Savings deposits





2,181,804

0.05



1,799,617

0.21



2,084,576

0.09



1,705,858

0.18


Certificates of deposit




1,663,558

0.67



1,613,060

0.93



1,814,693

0.75



1,442,745

1.08


    Total interest bearing deposits



8,248,935

0.23



6,929,099

0.63



8,082,652

0.33



6,469,160

0.67


Federal Home Loan Bank borrowings



691,183

2.14



1,188,220

2.43



1,135,934

2.17



1,074,715

2.47


Other borrowings





342,659

0.32



304,554

1.31



357,100

0.48



317,585

1.70


Subordinated debt and junior subordinated debt 



192,200

3.97



174,067

4.84



193,693

4.29



170,983

5.23


      Total interest bearing liabilities 



9,474,977

0.45

%


8,595,940

0.99

%


9,769,379

0.63

%


8,032,443

1.05

%

Non-interest bearing demand deposits



4,084,889




2,811,367




3,781,583




2,550,864



Other liabilities





241,959




183,002




240,340




150,618



Shareholders' equity





2,744,936




2,329,121




2,651,402




2,119,995



Total Liabilities and Shareholders' Equity



$   16,546,761




$   13,919,430




$        16,442,704




$  12,853,920



Taxable equivalent net interest spread




3.16

%



3.26

%



3.17

%



3.32

%

Taxable equivalent net interest margin 




3.31

%



3.55

%



3.37

%



3.62

%









































(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 were $6.7 million and $0.5

million for the three months ended December 31, 2020 and 2019, respectively, and were $16.2 million and $1.8 million for the years ended December 31, 2020 and 2019, respectively. As part

of loan fees for both the three months and year ended December 31, 2020, PPP loan fees were $5.7 million and $13.4 million. Additionally, loan accretion included in interest income on loans

acquired from prior acquisitions was $4.6 million and $4.9 million for the three months ended December 31, 2020 and 2019, respectively, and was $17.0 million and $17.9 million for the

years ended December 31, 2020 and 2019, respectively. Accretion on interest bearing liabilities acquired from prior acquisitions was $1.5 million and $1.9 million for the three months

ended December 31, 2020 and 2019, respectively, and was $9.5 million and $2.8 million for the years ended December 31, 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 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

2020


2020


2020


2020


2019


Loans, including fees

$                      114,582


$              116,524


$            115,068


$              119,503


$            105,879


Interest and dividends on securities:












Taxable 

10,892


11,669


14,047


16,986


16,586



Tax-exempt

4,059


4,182


4,302


4,456


4,563




Total interest and dividends on securities

14,951


15,851


18,349


21,442


21,149


Other interest income 

945


1,282


1,277


1,503


1,281

          Total interest and dividend income

130,478


133,657


134,694


142,448


128,309

Interest expense











Interest bearing demand deposits

1,099


1,225


1,350


3,393


4,054


Money market deposits

678


707


879


2,352


2,143


Savings deposits

280


303


297


923


935


Certificates of deposit

2,797


3,197


3,514


4,054


3,800




Total interest expense on deposits

4,854


5,432


6,040


10,723


10,932


Federal Home Loan Bank borrowings

3,719


5,457


7,293


8,232


7,279


Other short-term borrowings

275


304


279


870


1,009


Subordinated debt and junior subordinated debt

1,918


1,871


2,069


2,461


2,125




Total interest expense

10,766


13,064


15,681


22,286


21,345

Net interest income 

119,712


120,593


119,013


120,162


106,964


Provision for credit losses

(209)


16,288


61,841


29,821


1,824

Net interest income after provision for credit losses

119,921


104,305


57,172


90,341


105,140

Non-interest income











Trust fees

6,754


6,426


6,202


6,952


6,699


Service charges on deposits

5,671


5,332


4,323


6,617


7,171


Electronic banking fees

4,424


4,780


4,066


4,254


4,336


Net securities brokerage revenue

1,402


1,725


1,384


1,679


1,393


Bank-owned life insurance

1,750


2,088


1,752


1,769


1,882


Mortgage banking income

5,442


8,488


7,531


1,276


2,957


Net securities gains

691


787


1,299


1,491


520


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

18


-19


-66


169


61


Other income

6,553


5,005


6,369


3,802


5,819




Total non-interest income

32,705


34,612


32,860


28,009


30,838

Non-interest expense











Salaries and wages

39,140


38,342


36,773


38,910


36,984


Employee benefits

10,608


10,604


10,138


10,373


9,894


Net occupancy

6,771


7,092


6,634


7,084


6,162


Equipment 

6,810


6,229


5,722


6,039


5,570


Marketing

1,675


1,577


1,567


1,138


2,059


FDIC insurance 

1,278


1,948


2,395


2,113


668


Amortization of intangible assets

3,327


3,346


3,365


3,374


2,916


Restructuring and merger-related expense

484


3,608


468


5,164


11,522


Other operating expenses  

17,976


17,198


18,440


17,138


16,781




Total non-interest expense

88,069


89,943


85,502


91,333


92,556

Income before provision for income taxes

64,557


48,974


4,530


27,017


43,422


Provision for income taxes 

11,703


7,669


42


3,621


7,046

Net Income


52,854


41,305


4,488


23,396


36,376

Preferred stock dividends

2,644


-


-


-


-

Net income available to common shareholders

$                        50,210


$                41,305


$                4,488


$                23,396


$              36,376














Taxable equivalent net interest income

$                     120,790


$             121,705


$           120,156


$             121,346


$           108,177














Per common share data










Net income per common share - basic

$                            0.75


$                    0.61


$                  0.07


$                    0.34


$                  0.60

Net income per common share - diluted

0.75


0.61


0.07


0.34


0.60

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

0.76


0.66


0.07


0.40


0.75

Dividends declared

0.32


0.32


0.32


0.32


0.31

Book value (period end)

38.84


38.51


38.23


38.56


38.24

Tangible book value (period end) (1)

21.75


21.39


21.10


21.36


21.55

Average common shares outstanding - basic

67,238,005


67,214,759


67,104,828


67,486,550


60,461,325

Average common shares outstanding - diluted

67,304,442


67,269,303


67,181,756


67,587,446


60,562,366

Period end common shares outstanding

67,254,706


67,216,012


67,211,192


67,058,155


67,824,428

Period end preferred shares outstanding

150,000


150,000


-


-


-

Full time equivalent employees

2,612


2,618


2,676


2,703


2,705



























(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


2020


2020


2020


2020


2019


Non-performing assets:













Troubled debt restructurings - accruing


$           3,927


$           4,191


$           5,105


$           5,434


$           5,431



Non-accrual loans:














Troubled debt restructurings


1,828


1,818


1,339


1,571


1,422




Other non-accrual loans


35,052


35,448


34,119


32,796


43,491




    Total non-accrual loans


36,880


37,266


35,458


34,367


44,913




    Total non-performing loans 


40,807


41,457


40,563


39,801


50,344



Other real estate and repossessed assets


549


738


1,212


1,083


4,178




Total non-performing assets


$         41,356


$         42,195


$         41,775


$         40,884


$         54,522
















Past due loans (1):













Loans past due 30-89 days


$         31,596


$         17,338


$         30,595


$         32,805


$         36,330



Loans past due 90 days or more


8,846


10,170


36,903


14,287


11,613




Total past due loans


$         40,442


$         27,508


$         67,498


$         47,092


$         47,943
















Criticized and classified loans (2):













Criticized loans


$       362,295


$       248,264


$       148,580


$       120,801


$       118,959



Classified loans


132,650


108,594


98,127


95,162


103,519




Total criticized and classified loans


$       494,945


$       356,858


$       246,707


$       215,963


$       222,478
















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

0.29

%

0.16

%

0.28

%

0.32

%

0.35

%

Loans past due 90 days or more / total portfolio loans

0.08


0.09


0.33


0.14


0.11


Non-performing loans / total portfolio loans


0.38


0.38


0.37


0.38


0.49


Non-performing assets/total portfolio loans, other












real estate and repossessed assets


0.38


0.38


0.38


0.39


0.53


Non-performing assets / total assets


0.25


0.26


0.25


0.26


0.35


Criticized and classified loans / total portfolio loans

4.59


3.25


2.23


2.09


2.17
















Allowance for credit losses












Allowance for credit losses - loans (4)


$       185,827


$       185,109


$       168,475


$       114,272


$         52,429


Provision for credit losses (5)


(209)


16,288


61,841


29,821


1,824


Net loan and deposit account overdraft charge-offs and recoveries

524


(133)


1,942


4,716


4,476
















Annualized net loan charge-offs and recoveries /average loans

0.02

%

(0.00)

%

0.07

%

0.18

%

0.20

%

Allowance for credit losses - loans / total portfolio loans

1.72

%

1.68

%

1.52

%

1.10

%

0.51

%

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

1.85

%

1.83

%

1.65

%

1.10

%

0.51

%

Allowance for credit losses - loans / non-performing loans

4.55

x

4.47

x

4.15

x

2.87

x

1.04

x

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












loans past due 


2.29

x

2.68

x

1.56

x

1.32

x

0.53

x

































Quarter Ended






Dec. 31,


Sept. 30,


June 30,


Mar. 31,


Dec. 31,






2020


2020


2020


2020


2019


Capital ratios












Tier I leverage capital


10.51

%

10.18

%

9.09

%

9.64

%

11.30

%

Tier I risk-based capital


14.72


14.29


12.59


12.51


12.89


Total risk-based capital


17.57


17.18


15.33


14.83


15.12


Common equity tier 1 capital ratio (CET 1)


13.40


12.99


12.59


12.51


12.89


Average shareholders' equity to average assets

16.59


15.92


15.57


16.43


16.73


Tangible equity to tangible assets (6)


10.52


10.27


9.09


9.65


10.02


Tangible common equity to tangible assets (6)

9.58


9.33


9.09


9.65


10.02






























(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 $726.3 million of PPP loans as of December 31, 2020.










(4)

Excludes the allowance for credit losses - loan commitments, which is included in other liabilities, of $9.5 million, $10.8 million and $10.7 million as of December 31,

2020, September 30, 2020 and June 30, 2020, respectively.




(5)

The provision for credit losses includes ($1.3) million, $0.1 million and $5.1 million for loan commitments for the three months ended December 31, 2020, September 30,

2020 and June 30, 2020, respectively.




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








 

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)

2020


2020


2020


2020


2019


2020

2019

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














Net income available to common shareholders

$               50,210


$             41,305


$             4,488


$           23,396


$           36,376


$         119,400

$      158,873


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

383


2,850


370


4,080


9,102


7,683

12,954


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

50,593


44,155


4,858


27,476


45,478


127,083

171,827


















Average total assets


$        16,546,761


$      16,719,717


$    16,715,211


$    15,784,939


$    13,919,430


$    16,442,704

$ 12,853,920

















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

1.22%


1.05%


0.12%


0.70%


1.30%


0.77%

1.34%

















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














Net income available to common shareholders

$               50,210


$             41,305


$             4,488


$           23,396


$           36,376


$         119,400

$      158,873


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

383


2,850


370


4,080


9,102


7,683

12,954


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

50,593


44,155


4,858


27,476


45,478


127,083

171,827


















Average total shareholders' equity

2,744,936


2,662,513


2,602,938


2,594,069


2,329,121


2,651,402

2,119,995

















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

7.33%


6.60%


0.75%


4.26%


7.75%


4.79%

8.11%

















Return on average tangible equity:














Net income available to common shareholders

$               50,210


$             41,305


$             4,488


$           23,396


$           36,376


$         119,400

$      158,873


Plus: amortization of intangibles (1)

2,628


2,643


2,658


2,665


2,304


10,595

8,169


Net income available to common shareholders before amortization of intangibles 

52,838


43,948


7,146


26,061


38,680


129,995

167,042


















Average total shareholders' equity

2,744,936


2,662,513


2,602,938


2,594,069


2,329,121


2,651,402

2,119,995


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

(1,150,184)


(1,150,549)


(1,152,856)


(1,112,327)


(997,658)


(1,141,528)

(927,974)


Average tangible equity


$          1,594,752


$        1,511,964


$      1,450,082


$      1,481,742


$      1,331,463


$      1,509,874

$   1,192,021

















Return on average tangible equity (annualized)  (2)

13.18%


11.56%


1.98%


7.07%


11.53%


8.61%

14.01%


















Average tangible common equity

$          1,450,243


$        1,431,657


$      1,450,082


$      1,481,742


$      1,331,463


$      1,453,363

$   1,192,021

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

14.49%


12.21%


1.98%


7.07%


11.53%


8.94%

14.01%

















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














Net income available to common shareholders

$               50,210


$             41,305


$             4,488


$           23,396


$           36,376


$         119,400

$      158,873


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

383


2,850


370


4,080


9,102


7,683

12,954


Plus: amortization of intangibles  (1)

2,628


2,643


2,658


2,665


2,304


10,595

8,169


Net income available to common shareholders before amortization of intangibles 














     and excluding after-tax restructuring and merger-related expenses

53,221


46,798


7,516


30,141


47,782


137,678

179,996


















Average total shareholders' equity

2,744,936


2,662,513


2,602,938


2,594,069


2,329,121


2,651,402

2,119,995


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

(1,150,184)


(1,150,549)


(1,152,856)


(1,112,327)


(997,658)


(1,141,528)

(927,974)


Average tangible equity


$          1,594,752


$        1,511,964


$      1,450,082


$      1,481,742


$      1,331,463


$      1,509,874

$   1,192,021

















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

13.28%


12.31%


2.08%


8.18%


14.24%


9.12%

15.10%


















Average tangible common equity

$          1,450,243


$        1,431,657


$      1,450,082


$      1,481,742


$      1,331,463


$      1,453,363

$   1,192,021

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

14.60%


13.00%


2.08%


8.18%


14.24%


9.47%

15.10%

















Efficiency ratio:
















Non-interest expense


$               88,069


$             89,943


$           85,502


$           91,333


$           92,556


$         354,845

$      312,208


Less: restructuring and merger-related expense

(484)


(3,608)


(468)


(5,164)


(11,522)


(9,725)

(16,397)


Non-interest expense excluding restructuring and merger-related expense

87,585


86,335


85,034


86,169


81,034


345,120

295,811


















Net interest income on a fully taxable equivalent basis

120,790


121,705


120,156


121,346


108,177


483,999

405,222


Non-interest income


32,705


34,612


32,860


28,009


30,838


128,185

116,716


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

$             153,495


$           156,317


$         153,016


$         149,355


$         139,015


$         612,184

$      521,938


Efficiency Ratio


57.06%


55.23%


55.57%


57.69%


58.29%


56.38%

56.68%

















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














Net income available to common shareholders

$               50,210


$             41,305


$             4,488


$           23,396


$           36,376


$         119,400

$      158,873


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

383


2,850


370


4,080


9,102


7,683

12,954

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

$               50,593


$             44,155


$             4,858


$           27,476


$           45,478


$         127,083

$      171,827

































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














Net income per common share - diluted

$                   0.75


$                 0.61


$               0.07


$               0.35


$               0.60


$               1.77

$            2.83


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

0.01


0.05


(0.00)


0.06


0.15


0.11

0.23

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

$                   0.76


$                 0.66


$               0.07


$               0.41


$               0.75


$               1.88

$            3.06





































Period End








Dec. 31, 


Sept. 30,


June 30,


Mar. 31,


Dec. 31, 








2020


2020


2020


2020


2019




Tangible book value per share:














Total shareholders' equity

$          2,756,737


$        2,732,966


$      2,569,521


$      2,586,060


$      2,593,921





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

(1,149,161)


(1,150,939)


(1,151,523)


(1,154,033)


(1,132,262)





Less: preferred shareholder's equity

(144,484)


(144,529)


-


-


-





Tangible common equity


1,463,092


1,437,498


1,417,998


1,432,027


1,461,659





















Common shares outstanding

67,254,706


67,216,012


67,211,192


67,058,155


67,824,428




















Tangible book value per share


$                 21.75


$               21.39


$             21.10


$             21.36


$             21.55




















Tangible common equity to tangible assets:














Total shareholders' equity

$          2,756,737


$        2,732,966


$      2,569,521


$      2,586,060


$      2,593,921





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

(1,149,161)


(1,150,939)


(1,151,523)


(1,154,033)


(1,132,262)





Tangible equity


1,607,576


1,582,027


1,417,998


1,432,027


1,461,659





Less: preferred shareholder's equity

(144,484)


(144,529)




-


-





Tangible common equity


1,463,092


1,437,498


1,417,998


1,432,027


1,461,659





















Total assets



16,425,610


16,552,140


16,755,395


15,995,572


15,720,112





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

(1,149,161)


(1,150,939)


(1,151,523)


(1,154,033)


(1,132,262)





Tangible assets


$        15,276,449


$      15,401,201


$    15,603,872


$    14,841,539


$    14,587,850




















Tangible equity to tangible assets

10.52%


10.27%


9.09%


9.65%


10.02%




















Tangible common equity to tangible assets

9.58%


9.33%


9.09%


9.65%


10.02%




































(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.













 

ADDITONAL 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)

2020


2020


2020


2020


2019


2020

2019

Pre-tax, pre-provision income:















Income before provision for income taxes

$         64,557


$        48,974


$          4,530


$        27,017


$          43,422


$      145,079

$           193,214


Add: provision for credit losses

(209)


16,288


61,841


29,821


1,824


107,741

11,198

Pre-tax, pre-provision income


$         64,348


$        65,262


$        66,371


$        56,838


$          45,246


$      252,820

$           204,412

















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














Income before provision for income taxes

$         64,557


$        48,974


$          4,530


$        27,017


$          43,422


$      145,079

$           193,214


Add: provision for credit losses

(209)


16,288


61,841


29,821


1,824


107,741

11,198


Add: restructuring and merger-related expenses

484


3,608


468


5,164


11,522


9,725

16,397

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

$         64,832


$        68,870


$        66,839


$        62,002


$          56,768


$      262,545

$           220,809

















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














Income before provision for income taxes

$         64,557


$        48,974


$          4,530


$        27,017


$          43,422


$      145,079

$           193,214


Add: provision for credit losses

(209)


16,288


61,841


29,821


1,824


107,741

11,198


Add: restructuring and merger-related expenses

484


3,608


468


5,164


11,522


9,725

16,397

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

64,832


68,870


66,839


62,002


56,768


262,545

220,809


















Average total assets


$  16,546,761


$ 16,719,717


$ 16,715,211


$ 15,784,939


$   13,919,430


$ 16,442,704

$      12,853,920

















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

1.56%


1.64%


1.61%


1.58%


1.62%


1.60%

1.72%

















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














Income before provision for income taxes

$         64,557


$        48,974


$          4,530


$        27,017


$          43,422


$      145,079

$           193,214


Add: provision for credit losses

(209)


16,288


61,841


29,821


1,824


107,741

11,198


Add: restructuring and merger-related expenses

484


3,608


468


5,164


11,522


9,725

16,397

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

64,832


68,870


66,839


62,002


56,768


262,545

220,809


















Average total shareholders' equity

2,744,936


2,662,513


2,602,938


2,594,069


2,329,121


2,651,402

2,119,995

















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

9.40%


10.29%


10.33%


9.61%


9.67%


9.90%

10.42%

















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














Income before provision for income taxes

$         64,557


$        48,974


$          4,530


$        27,017


$          43,422


$      145,079

$           193,214


Add: provision for credit losses

(209)


16,288


61,841


29,821


1,824


107,741

11,198


Add: amortization of intangibles

3,327


3,346


3,365


3,374


2,916


13,411

10,340


Add: restructuring and merger-related expenses

484


3,608


468


5,164


11,522


9,725

16,397

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

68,159


72,216


70,204