Continued deposit and loan growth while maintaining a stable net interest margin

WHEELING, W.Va., Jan. 23, 2024 /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, 2023. Net income available to common shareholders for the fourth quarter of 2023 was $32.4 million, with diluted earnings per share of $0.55, compared to $49.7 million and $0.84 per diluted share, respectively, for the fourth quarter of 2022. For the twelve months ended December 31, 2023, net income was $148.9 million, or $2.51 per diluted share, compared to $182.0 million, or $3.02 per diluted share, for the 2022 period. As noted in the following table, net income available to common shareholders, excluding after-tax restructuring and merger-related expenses, for the three and twelve months ended December 31, 2023 were $32.4 million, or $0.55 per diluted share, and $151.9 million, or $2.56 per diluted share, respectively (non-GAAP measures).

WesBanco Logo (PRNewsfoto/WesBanco, Inc.)




For the Three Months Ended December 31,



For the Twelve Months Ended December 31,




2023


2022



2023


2022

(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)


$      32,437


$          0.55


$      49,688


$          0.84



$    151,933


$          2.56


$    183,349


$          3.04

Less: After-tax restructuring and
merger-related expenses


-


-


(9)


-



(3,026)


(0.05)


(1,361)


(0.02)

Net income available to common
shareholders (GAAP)


$      32,437


$          0.55


$      49,679


$          0.84



$    148,907


$          2.51


$    181,988


$          3.02

(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, 2023:

  • Deposits of $13.2 billion increased both year-over-year and sequentially, reflecting deposit gathering and retention efforts across retail and business customers
    • Average loans to average deposits were 87%, providing capacity to fund loan growth
  • Total loan growth was 8.7% year-over-year and 2.9% quarter-over-quarter, reflecting the strength of our markets and lending teams
    • Loan production offices continued to contribute meaningfully to the commercial loan pipeline
  • Non-interest income increased 8.0% year-over-year, supported by new commercial loan swap and wealth management fees
    • New commercial swap fees totaled $9.0 million during 2023
    • Trust assets increased to $5.4 billion, driven by both market value adjustments and organic growth
  • Net interest margin of 3.02% was stable to the third quarter of 2023
  • Key credit quality metrics such as non-performing assets, total 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 (based upon the prior four quarters for banks with total assets between $10 billion and $25 billion)
  • WesBanco remains well-capitalized with solid liquidity and a strong balance sheet with capacity to fund loan growth
  • WesBanco continued to earn national accolades, being recognized as one of America's Best Regional Banks by Newsweek

"Record interest rate escalation by the Federal Reserve had a significant impact on all banks, including WesBanco. Despite that headwind, WesBanco performed well during 2023 through our continued focus on customer service and sustainable growth strategies. We achieved sustained loan, deposit, and fee income growth, while maintaining strong capital levels and credit quality," said Jeff Jackson, President and Chief Executive Officer, WesBanco. "Our focus on further diversifying our revenue streams with new fee-based services is driving positive non-interest income trends. As we begin 2024, we remain well-capitalized with solid liquidity and a strong balance sheet to fund loan growth, positioning us well to continue generating value for our stakeholders."

Balance Sheet
As of December 31, 2023, total portfolio loans were $11.6 billion, which increased 8.7% year-over-year driven by strong performance from our commercial and residential lending teams. Total commercial loans of $8.2 billion, which increased 7.8% year-over-year, reflects the benefit of our commercial banker hiring and loan production office strategies and lower commercial real estate payoffs of $276 million for the year, compared to an anticipated level in the $500 million range within a more normal operating environment.  Our new loan production offices accounted for more than 20% of commercial loan growth during the year. The commercial pipeline totaled $0.7 billion at December 31, 2023, approximately 28% of which is from the four new loan production offices.

Total deposits, as of December 31, 2023, were $13.2 billion, up 0.6% from September 30, 2023 and up 0.3% from December 31, 2022, reflecting the benefit of deposit gathering and retention efforts by our retail and commercial teams. Reflecting the impact of the significant increase in the federal funds rate, there continued to be some mix shift in the composition of total deposits; however, total demand deposits continue to represent 56% of total deposits, with the non-interest bearing component representing 30%, which remains consistent with the percentage range since early 2020.

Credit Quality
As of December 31, 2023, total loans past due, criticized and classified loans, non-performing loans, and non-performing assets as percentages of the loan portfolio and total assets have remained low, from a historical perspective, and within a consistent range throughout the last five quarters. Total loans past due as a percent of the loan portfolio increased 9 basis points from the prior year, but remain below the quarterly average for the last three years. Criticized and classified loans as a percent of the loan portfolio decreased 12 basis points year-over-year to 2.22%, while non-performing assets as a percentage of total assets declined 9 basis points to 0.16%. The current recorded provision was primarily driven by changes in criticized and classified loan balances, prepayment assumptions, and loan growth. The allowance for credit losses to total portfolio loans at December 31, 2023 remained at 1.12% of total loans, as compared to the third quarter, or $130.7 million. Excluded from the allowance for credit losses and related coverage ratio are fair market value adjustments on previously acquired loans representing 0.12% of total loans.

Net Interest Margin and Income
The net interest margin of 3.02% for the fourth quarter of 2023 decreased just 1 basis point sequentially but 47 basis points year-over-year primarily due to higher funding costs from increasing deposit costs and continued remix from non-interest bearing deposits into higher tier money market and certificate of deposit accounts. Total deposit funding costs were 234 basis points for the fourth quarter of 2023, and, when including non-interest deposits, total deposit funding costs were 161 basis points. Accretion from acquisitions benefited the fourth quarter net interest margin by 3 basis points, as compared to 5 basis points in the prior year period.

Fourth quarter net interest income of $117.8 million decreased $12.1 million, or 9.3%, year-over-year, reflecting the impact of rising rates on funding costs more than offsetting higher loan and securities yields and loan growth. For the twelve months ended December 31, 2023, net interest income of $481.3 million increased $7.0 million, or 1.5%, primarily due to loan growth and the benefit of rising rates on earning assets outpacing funding costs.

Non-Interest Income
For the fourth quarter of 2023, non-interest income of $30.1 million increased $2.3 million, or 8.3%, from the fourth quarter of 2022.  This increase was primarily due to net securities gains of $0.9 million, as compared to a loss of $0.6 million in the prior year period, from market fluctuations of equity securities in the deferred compensation plan and higher death benefits within bank-owned life insurance. The net swap fee and valuation loss of $0.3 million reflects $2.2 million of new swap fees offset by negative fair value adjustments of $2.5 million, as compared to $1.7 million and negative $0.7 million, respectively, in the prior year period.

For the twelve months ended December 31, 2023, non-interest income of $120.4 million increased $3.1 million, or 2.6%, year-over-year due primarily to the items discussed above, partially offset by lower mortgage banking income. Mortgage banking income decreased $2.5 million from the prior year to $2.7 million due to reduced fair value adjustments on mortgage derivatives. Net gains on other assets of $1.5 million increased $1.0 million year-over-year primarily due to a $1.1 million recovery of an asset previously written-off.

Non-Interest Expense
Non-interest expense for the three months ended December 31, 2023 increased $9.0 million year-over-year to $99.5 million, reflecting increased salaries and wages, benefits, equipment and software expense, and FDIC insurance. As anticipated, salaries and wages declined sequentially which reflects efficiency improvements in the mortgage staffing model. Salaries and wages increased $2.6 million, or 6.0%, compared to the prior year period due to higher salary expense related to annual merit increases and new revenue-producing hires, mainly commercial lenders, during the past year. Employee benefits increased $2.2 million year-over-year due to higher deferred compensation expense, the offsetting gain is located within net securities gains, and higher health insurance contributions. FDIC insurance expense increased $1.3 million year-over-year due to an increase in the minimum rate for all banks. Marketing expense increased $1.2 million in support of deposit and loan generation campaigns. Equipment and software expense increased $0.9 million due to the planned upgrade of our ATM fleet with the latest technology and general inflationary cost increases for existing service agreements.

Excluding restructuring and merger-related expenses, non-interest expense during the twelve months of 2023 of $386.2 million increased $30.9 million compared to the prior year period, due primarily to the same factors as described above.

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, 2023, Tier I leverage was 9.87%, Tier I risk-based capital ratio was 12.05%, common equity Tier 1 capital ratio ("CET 1") was 10.99%, and total risk-based capital was 14.91%. In addition, the tangible common equity to tangible assets ratio improved to 7.62%.

Conference Call and Webcast
WesBanco will host a conference call to discuss the Company's financial results for the fourth quarter of 2023 at 10:00 a.m. ET on Wednesday, January 24, 2024. Interested parties can access the live webcast of the conference call through the Investor Relations section of the Company's website, www.wesbanco.com. Participants can also listen to the conference call by dialing 888-347-6607, 855-669-9657 for Canadian callers, or 412-902-4290 for international callers, and asking to be joined into the WesBanco call. Please log in or dial in at least 10 minutes prior to the start time to ensure a connection.

A replay of the conference call will be available by dialing 877-344-7529, 855-669-9658 for Canadian callers, or 412-317-0088 for international callers, and providing the access code of 4078172. The replay will begin at approximately 12:00 p.m. ET on January 24, 2024 and end at 12 a.m. ET on February 7, 2024. 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, 2022 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, 2023, June 30, 2023 and September 30, 2023, 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, 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 Consumer Financial Protection Bureau, 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. 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. The company's banking subsidiary, Wesbanco Bank, Inc., operates more than 190 financial centers in the states of Indiana, Kentucky, Maryland, Ohio, Pennsylvania, and West Virginia. 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, the company provides trust, wealth management, securities brokerage, and private banking services through its century-old Trust and Investment Services department, with approximately $5.4 billion of assets under management (as of December 31, 2023). The company also offers insurance and brokerage services through its affiliates and subsidiaries. Learn more at www.wesbanco.com and follow us on Facebook, LinkedIn and X, formerly Twitter.

 

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

2023


2022


% Change


2023


2022


% Change


Loans, including fees

$        162,498


$          123,307


31.8


$        596,852


$          422,401


41.3


Interest and dividends on securities:














Taxable 

17,798


18,655


(4.6)


73,449


66,123


11.1



Tax-exempt

4,639


4,853


(4.4)


18,830


18,818


0.1




Total interest and dividends on securities

22,437


23,508


(4.6)


92,279


84,941


8.6


Other interest income 

6,383


2,103


203.5


22,385


6,314


254.5

          Total interest and dividend income

191,318


148,918


28.5


711,516


513,656


38.5

Interest expense













Interest bearing demand deposits

23,686


7,264


226.1


72,866


12,181


498.2


Money market deposits

14,302


1,890


656.7


36,616


3,562


928.0


Savings deposits

7,310


2,454


197.9


23,869


4,115


480.0


Certificates of deposit

8,380


742


 NM 


18,472


4,089


351.7




Total interest expense on deposits

53,678


12,350


334.6


151,823


23,947


534.0


Federal Home Loan Bank borrowings

14,841


2,634


463.4


59,318


3,968


 NM 


Other short-term borrowings

891


324


175.0


2,545


568


348.1


Subordinated debt and junior subordinated debt 

4,150


3,736


11.1


16,492


10,860


51.9




Total interest expense

73,560


19,044


286.3


230,178


39,343


485.1

Net interest income 

117,758


129,874


(9.3)


481,338


474,313


1.5


Provision for credit losses

4,803


3,123


53.8


17,734


(1,663)


 NM 

Net interest income after provision for credit losses

112,955


126,751


(10.9)


463,604


475,976


(2.6)

Non-interest income













Trust fees

7,019


6,672


5.2


28,135


27,551


2.1


Service charges on deposits

6,989


6,762


3.4


26,116


26,281


(0.6)


Electronic banking fees

4,890


4,695


4.2


19,454


20,002


(2.7)


Net swap fee and valuation (loss)/income 

(345)


1,015


(134.0)


6,912


7,067


(2.2)


Net securities brokerage revenue

2,563


2,556


0.3


10,055


9,525


5.6


Bank-owned life insurance

3,455


2,464


40.2


11,002


10,728


2.6


Mortgage banking income

650


621


4.7


2,652


5,129


(48.3)


Net securities gains/(losses)

887


(600)


247.8


900


(1,777)


150.6


Net gains on other real estate owned and other assets

445


550


(19.1)


1,520


482


215.4


Other income

3,521


3,035


16.0


13,701


12,403


10.5




Total non-interest income

30,074


27,770


8.3


120,447


117,391


2.6

Non-interest expense













Salaries and wages

45,164


42,606


6.0


176,938


167,028


5.9


Employee benefits

11,409


9,198


24.0


46,901


37,771


24.2


Net occupancy

6,417


6,262


2.5


25,338


26,105


(2.9)


Equipment and software

9,648


8,712


10.7


36,666


32,508


12.8


Marketing

2,975


1,788


66.4


11,178


9,335


19.7


FDIC insurance 

3,369


2,051


64.3


12,249


7,901


55.0


Amortization of intangible assets

2,243


2,541


(11.7)


9,088


10,278


(11.6)


Restructuring and merger-related expense

-


11


(100.0)


3,830


1,723


122.3


Other operating expenses  

18,278


17,286


5.7


67,814


64,317


5.4




Total non-interest expense

99,503


90,455


10.0


390,002


356,966


9.3

Income before provision for income taxes

43,526


64,066


(32.1)


194,049


236,401


(17.9)


Provision for income taxes 

8,558


11,856


(27.8)


35,017


44,288


(20.9)

Net Income

34,968


52,210


(33.0)


159,032


192,113


(17.2)

Preferred stock dividends

2,531


2,531


-


10,125


10,125


-

Net income available to common shareholders

$          32,437


$            49,679


(34.7)


$        148,907


$          181,988


(18.2)































Taxable equivalent net interest income

$       118,991


$       131,164


(9.3)


$       486,343


$       479,315


1.5
















Per common share data












Net income per common share - basic

$               0.55


$                0.84


(34.5)


$               2.51


$                3.03


(17.2)

Net income per common share - diluted

0.55


0.84


(34.5)


2.51


3.02


(16.9)

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

0.55


0.84


(34.5)


2.56


3.04


(15.8)

Dividends declared

0.36


0.35


2.9


1.41


1.37


2.9

Book value (period end)

40.23


38.55


4.4


40.23


38.55


4.4

Tangible book value (period end) (1)

21.28


19.43


9.5


21.28


19.43


9.5

Average common shares outstanding - basic

59,370,171


59,188,238


0.3


59,303,210


60,047,177


(1.2)

Average common shares outstanding - diluted

59,479,031


59,374,204


0.2


59,427,989


60,215,374


(1.3)

Period end common shares outstanding

59,376,435


59,198,963


0.3


59,376,435


59,198,963


0.3

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,










2023


2022


% Change


























Return on average assets





0.86

%

1.08

%

(20.37)

%







Return on average assets, excluding
















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



0.88


1.09


(19.27)








Return on average equity





6.02


7.23


(16.74)








Return on average equity, excluding
















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



6.14


7.29


(15.78)








Return on average tangible equity (1)




11.59


13.78


(15.89)








Return on average tangible equity, excluding 
















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



11.82


13.88


(14.84)








Return on average tangible common equity (1)




12.99


15.39


(15.59)








Return on average tangible common equity, excluding 















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



13.24


15.50


(14.58)








Yield on earning assets (2) 





4.63


3.47


33.43








Cost of interest bearing liabilities





2.25


0.42


435.71








Net interest spread (2)






2.38


3.05


(21.97)








Net interest margin (2)






3.14


3.20


(1.88)








Efficiency (1) (2)






63.64


59.53


6.90








Average loans to average deposits





85.71


74.21


15.50








Annualized net loan charge-offs/average loans




0.04


0.02


100.00








Effective income tax rate 





18.05


18.73


(3.63)






















































































For the Three Months Ended










Dec. 31,


Sept. 30,


June 30,


Mar. 31,


Dec. 31,










2023


2023


2023


2023


2022






















Return on average assets





0.74

%

0.78

%

0.98

%

0.95

%

1.18

%



Return on average assets, excluding
















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



0.74


0.80


0.98


1.01


1.18




Return on average equity





5.21


5.49


6.81


6.57


8.18




Return on average equity, excluding
















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



5.21


5.57


6.82


6.98


8.18




Return on average tangible equity (1)




10.11


10.60


12.98


12.72


16.05




Return on average tangible equity, excluding 
















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



10.11


10.75


12.99


13.48


16.05




Return on average tangible common equity (1)




11.32


11.87


14.52


14.28


18.09




Return on average tangible common equity, excluding 















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



11.32


12.03


14.53


15.13


18.10




Yield on earning assets (2) 





4.88


4.72


4.59


4.32


4.00




Cost of interest bearing liabilities





2.76


2.52


2.15


1.52


0.82




Net interest spread (2)






2.12


2.20


2.44


2.80


3.18




Net interest margin (2)






3.02


3.03


3.18


3.36


3.49




Efficiency (1) (2) 






66.75


64.95


62.33


60.66


56.91




Average loans to average deposits





87.07


86.79


85.44


83.46


78.43




Annualized net loan charge-offs and recoveries /average loans

0.06


0.01


0.02


0.07


0.02




Effective income tax rate 





19.66


16.83


16.80


19.02


18.51




Trust assets, market value at period end




$   5,360,657


$      4,982,324


$      5,127,265


$      5,026,631


$      4,878,479






















(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, 2023

Assets




2023


2022


% Change

2023

to December 31, 2023

Cash and due from banks


$        158,504


$          166,182


(4.6)

$             153,012

3.6

Due from banks - interest bearing


436,879


242,229


80.4

342,070

27.7

Securities:











Equity securities, at fair value


12,320


11,506


7.1

11,453

7.6


Available-for-sale debt securities, at fair value


2,194,329


2,529,140


(13.2)

2,196,141

(0.1)


Held-to-maturity debt securities (fair values of $1,069,159; $1,084,390










and $998,987, respectively)


1,199,527


1,248,629


(3.9)

1,210,992

(0.9)



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


(192)


(220)


12.7

(180)

(6.7)


Net held-to-maturity debt securities


1,199,335


1,248,409


(3.9)

1,210,812

(0.9)



Total securities


3,405,984


3,789,055


(10.1)

3,418,406

(0.4)

Loans held for sale


16,354


8,249


98.3

17,677

(7.5)

Portfolio loans:










Commercial real estate


6,565,448


6,061,344


8.3

6,387,183

2.8


Commercial and industrial


1,670,659


1,579,395


5.8

1,587,611

5.2


Residential real estate 


2,438,574


2,140,584


13.9

2,392,531

1.9


Home equity


734,219


695,065


5.6

715,186

2.7


Consumer 


229,561


226,340


1.4

233,362

(1.6)

Total portfolio loans, net of unearned income


11,638,461


10,702,728


8.7

11,315,873

2.9

Allowance for credit losses - loans 


(130,675)


(117,790)


(10.9)

(126,615)

(3.2)



Net portfolio loans


11,507,786


10,584,938


8.7

11,189,258

2.8

Premises and equipment, net


233,571


220,892


5.7

226,377

3.2

Accrued interest receivable


77,435


68,522


13.0

73,014

6.1

Goodwill and other intangible assets, net


1,132,267


1,141,355


(0.8)

1,134,510

(0.2)

Bank-owned life insurance


355,033


352,361


0.8

356,962

(0.5)

Other assets


388,561


358,122


8.5

433,091

(10.3)

Total Assets


$  17,712,374


$     16,931,905


4.6

$        17,344,377

2.1













Liabilities










Deposits:











Non-interest bearing demand


$     3,962,592


$       4,700,438


(15.7)

$          4,169,956

(5.0)


Interest bearing demand


3,463,443


3,119,807


11.0

3,278,956

5.6


Money market


2,017,713


1,684,023


19.8

1,905,001

5.9


Savings deposits


2,493,254


2,741,004


(9.0)

2,559,894

(2.6)


Certificates of deposit


1,231,702


885,818


39.0

1,176,421

4.7



Total deposits


13,168,704


13,131,090


0.3

13,090,228

0.6

Federal Home Loan Bank borrowings


1,350,000


705,000


91.5

1,125,000

20.0

Other short-term borrowings


105,893


135,069


(21.6)

106,693

(0.7)

Subordinated debt and junior subordinated debt 


279,078


281,404


(0.8)

282,079

(1.1)



Total borrowings


1,734,971


1,121,473


54.7

1,513,772

14.6

Accrued interest payable


11,121


4,593


142.1

11,416

(2.6)

Other liabilities


264,516


248,087


6.6

281,020

(5.9)

Total Liabilities


15,179,312


14,505,243


4.6

14,896,436

1.9













Shareholders' Equity









Preferred stock, no par value; 1,000,000 shares authorized; 150,000 shares










6.75% non-cumulative perpetual preferred stock, Series A, liquidation










preference $150.0 million, issued and outstanding, respectively


144,484


144,484


-

144,484

-

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










68,081,306 shares issued; 59,376,435, 59,198,963 and 59,364,696










shares outstanding, respectively


141,834


141,834


-

141,834

-

Capital surplus


1,635,859


1,635,877


(0.0)

1,633,395

0.2

Retained earnings


1,142,586


1,077,675


6.0

1,131,597

1.0

Treasury stock (8,704,871, 8,882,343 and 8,716,610 shares - at cost, respectively)


(302,995)


(308,964)


1.9

(303,424)

0.1

Accumulated other comprehensive loss


(226,693)


(262,416)


13.6

(297,906)

23.9

Deferred benefits for directors


(2,013)


(1,828)


(10.1)

(2,039)

1.3

Total Shareholders' Equity


2,533,062


2,426,662


4.4

2,447,941

3.5

Total Liabilities and Shareholders' Equity


$  17,712,374


$     16,931,905


4.6

$        17,344,377

2.1

























 

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 Dec. 31,




For the Twelve Months Ended Dec. 31, 








2023

2022



2023

2022







Average 

Average



Average 

Average



Average 

Average



Average 

Average


Assets





Balance

Rate



Balance

Rate



Balance

Rate



Balance

Rate


Due from banks - interest bearing




$        332,670

6.25

%


$       178,706

4.32

%


$        348,109

5.43

%


$          611,482

0.94

%

Loans, net of unearned income (1)




11,490,379

5.61



10,456,648

4.68



11,132,618

5.36



10,083,925

4.19


Securities: (2)




















    Taxable





3,010,064

2.35



3,429,372

2.16



3,150,781

2.33



3,461,414

1.91


    Tax-exempt (3)





770,186

3.02



811,593

3.00



783,697

3.04



789,564

3.02


        Total securities





3,780,250

2.48



4,240,965

2.32



3,934,478

2.47



4,250,978

2.12


Other earning assets 





52,879

8.57



19,494

3.20



55,368

6.26



15,265

3.66


         Total earning assets (3)




15,656,178

4.88

%


14,895,813

4.00

%


15,470,573

4.63

%


14,961,650

3.47

%

Other assets





1,769,933




1,790,117




1,789,147




1,917,891



Total Assets





$  17,426,111




$  16,685,930




$  17,259,720




$     16,879,541























Liabilities and Shareholders' Equity


















Interest bearing demand deposits




$     3,417,220

2.75

%


$    3,169,673

0.91

%


$     3,243,786

2.25

%


$       3,314,384

0.37

%

Money market accounts 




1,985,203

2.86



1,739,874

0.43



1,763,921

2.08



1,774,152

0.20


Savings deposits





2,515,798

1.15



2,726,647

0.36



2,655,105

0.90



2,692,568

0.15


Certificates of deposit





1,191,583

2.79



931,853

0.32



1,008,950

1.83



1,098,614

0.37


    Total interest bearing deposits




9,109,804

2.34



8,568,047

0.57



8,671,762

1.75



8,879,718

0.27


Federal Home Loan Bank borrowings



1,080,163

5.45



282,934

3.69



1,138,247

5.21



175,104

2.27


Repurchase agreements




114,801

3.08



136,099

0.94



115,817

2.20



146,590

0.39


Subordinated debt and junior subordinated debt 

282,004

5.84



281,265

5.27



281,788

5.85



248,192

4.38


      Total interest bearing liabilities (4)



10,586,772

2.76

%


9,268,345

0.82

%


10,207,614

2.25

%


9,449,604

0.42

%

Non-interest bearing demand deposits



4,086,366




4,763,773




4,316,245




4,708,758



Other liabilities





284,448




243,051




261,234




205,670



Shareholders' equity





2,468,525




2,410,761




2,474,627




2,515,509



Total Liabilities and Shareholders' Equity



$  17,426,111




$  16,685,930




$  17,259,720




$     16,879,541



Taxable equivalent net interest spread




2.12

%



3.18

%



2.38

%



3.05

%

Taxable equivalent net interest margin 




3.02

%



3.49

%



3.14

%



3.20

%









































(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 $0.7 million and $0.8 million for the three months ended December 31, 2023 and 2022, respectively, and were $2.7 million and $8.8 million for the years ended December 31, 2023 and 2022, respectively.  Additionally, loan accretion included in interest income on loans acquired from prior acquisitions was $1.0 million and $1.8 million for the three months ended December 31, 2023 and 2022, respectively, and $4.5 million and $8.0 million for the years ended December 31, 2023 and 2022, 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 $0.2 million for both the three months ended December 31, 2023 and 2022, and $0.5 million and $1.1 million for the years ended December 31, 2023 and 2022, 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

2023


2023


2023


2023


2022


Loans, including fees

$        162,498


$          155,206


$          145,741


$          133,406


$          123,307


Interest and dividends on securities:












Taxable 

17,798


18,082


18,483


19,086


18,655



Tax-exempt

4,639


4,679


4,723


4,790


4,853




Total interest and dividends on securities

22,437


22,761


23,206


23,876


23,508


Other interest income 

6,383


5,622


7,108


3,273


2,103

          Total interest and dividend income

191,318


183,589


176,055


160,555


148,918

Interest expense











Interest bearing demand deposits

23,686


20,873


17,203


11,106


7,264


Money market deposits

14,302


10,841


7,220


4,252


1,890


Savings deposits

7,310


6,699


5,860


4,000


2,454


Certificates of deposit

8,380


5,983


2,906


1,203


742




Total interest expense on deposits

53,678


44,396


33,189


20,561


12,350


Federal Home Loan Bank borrowings

14,841


16,463


16,713


11,300


2,634


Other short-term borrowings

891


745


492


418


324


Subordinated debt and junior subordinated debt

4,150


4,303


4,094


3,944


3,736




Total interest expense

73,560


65,907


54,488


36,223


19,044

Net interest income 

117,758


117,682


121,567


124,332


129,874


Provision for credit losses

4,803


6,327


3,028


3,577


3,123

Net interest income after provision for credit losses

112,955


111,355


118,539


120,755


126,751

Non-interest income











Trust fees

7,019


6,705


6,918


7,494


6,672


Service charges on deposits

6,989


6,726


6,232


6,170


6,762


Electronic banking fees

4,890


4,949


5,010


4,605


4,695


Net swap fee and valuation (loss)/income 

(345)


3,845


2,612


799


1,015


Net securities brokerage revenue

2,563


2,394


2,523


2,576


2,556


Bank-owned life insurance

3,455


2,398


3,189


1,959


2,464


Mortgage banking income

650


975


601


426


621


Net securities gains/(losses)

887


(337)


205


145


(600)


Net gains/(losses) on other real estate owned and other assets

445


(28)


871


232


550


Other income

3,521


3,252


3,680


3,247


3,035




Total non-interest income

30,074


30,879


31,841


27,653


27,770

Non-interest expense











Salaries and wages

45,164


45,351


44,471


41,952


42,606


Employee benefits

11,409


11,922


11,511


12,060


9,198


Net occupancy

6,417


6,146


6,132


6,643


6,262


Equipment and software

9,648


9,132


8,823


9,063


8,712


Marketing

2,975


3,115


2,763


2,325


1,788


FDIC insurance 

3,369


3,125


2,871


2,884


2,051


Amortization of intangible assets

2,243


2,262


2,282


2,301


2,541


Restructuring and merger-related expense

-


641


35


3,153


11


Other operating expenses  

18,278


16,245


17,549


15,744


17,286




Total non-interest expense

99,503


97,939


96,437


96,125


90,455

Income before provision for income taxes

43,526


44,295


53,943


52,283


64,066


Provision for income taxes 

8,558


7,453


9,063


9,942


11,856

Net Income

34,968


36,842


44,880


42,341


52,210

Preferred stock dividends

2,531


2,531


2,531


2,531


2,531

Net income available to common shareholders

$          32,437


$            34,311


$            42,349


$            39,810


$            49,679














Taxable equivalent net interest income

$       118,991


$       118,926


$       122,822


$       125,605


$       131,164














Per common share data










Net income per common share - basic

$               0.55


$                0.58


$                0.71


$                0.67


$                0.84

Net income per common share - diluted

0.55


0.58


0.71


0.67


0.84

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

0.55


0.59


0.71


0.71


0.84

Dividends declared

0.36


0.35


0.35


0.35


0.35

Book value (period end)

40.23


38.80


39.10


39.34


38.55

Tangible book value (period end) (1)

21.28


19.82


20.08


20.27


19.43

Average common shares outstanding - basic

59,370,171


59,358,653


59,263,949


59,217,711


59,188,238

Average common shares outstanding - diluted

59,479,031


59,443,366


59,385,847


59,375,053


59,374,204

Period end common shares outstanding

59,376,435


59,364,696


59,355,062


59,246,569


59,198,963

Period end preferred shares outstanding

150,000


150,000


150,000


150,000


150,000

Full time equivalent employees

2,368


2,427


2,542


2,501


2,495














(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


2023


2023


2023


2023


2022


Non-performing assets:













Troubled debt restructurings - accruing

$                -


$                -


$                -


$                -


$           3,230



Non-accrual loans:














Troubled debt restructurings


-


-


-


-


1,711




Other non-accrual loans


26,808


29,878


31,555


39,216


36,474




    Total non-accrual loans


26,808


29,878


31,555


39,216


38,185




    Total non-performing loans 


26,808


29,878


31,555


39,216


41,415



Other real estate and repossessed assets

1,497


1,333


1,432


1,554


1,486




Total non-performing assets


$       28,305


$         31,211


$         32,987


$         40,770


$         42,901
















Past due loans (1):













Loans past due 30-89 days


$       22,875


$         16,030


$         18,348


$         12,920


$         15,439



Loans past due 90 days or more


9,638


8,606


5,147


4,570


5,443




Total past due loans


$       32,513


$         24,636


$         23,495


$         17,490


$         20,882
















Criticized and classified loans (2):













Criticized loans


$    183,174


$       180,136


$       119,771


$       116,608


$       147,945



Classified loans


75,497


70,997


67,036


57,222


102,555




Total criticized and classified loans

$    258,671


$       251,133


$       186,807


$       173,830


$       250,500
















Loans past due 30-89 days / total portfolio loans 

0.20

%

0.14

%

0.16

%

0.12

%

0.14

%

Loans past due 90 days or more / total portfolio loans

0.08


0.08


0.05


0.04


0.05


Non-performing loans / total portfolio loans

0.23


0.26


0.28


0.36


0.39


Non-performing assets / total portfolio loans, other












real estate and repossessed assets


0.24


0.28


0.30


0.37


0.40


Non-performing assets / total assets


0.16


0.18


0.19


0.24


0.25


Criticized and classified loans / total portfolio loans

2.22


2.22


1.68


1.60


2.34
















Allowance for credit losses












Allowance for credit losses - loans


$    130,675


$       126,615


$       120,166


$       118,698


$       117,790


Allowance for credit losses - loan commitments

8,604


9,729


10,124


9,127


8,368


Provision for credit losses


4,803


6,327


3,028


3,577


3,123


Net loan and deposit account overdraft charge-offs and recoveries

1,857


286


581


1,919


493
















Annualized net loan charge-offs and recoveries / average loans

0.06

%

0.01

%

0.02

%

0.07

%

0.02

%

Allowance for credit losses - loans / total portfolio loans

1.12

%

1.12

%

1.08

%

1.09

%

1.10

%

Allowance for credit losses - loans / non-performing loans

4.87

x

4.24

x

3.81

x

3.03

x

2.84

x

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












loans past due 


2.20

x

2.32

x

2.18

x

2.09

x

1.89

x















































Dec. 31,


Sept. 30,


June 30,


Mar. 31,


Dec. 31,






2023


2023


2023


2023


2022


Capital ratios












Tier I leverage capital


9.87

%

9.84

%

9.78

%

9.82

%

9.90

%

Tier I risk-based capital


12.05


12.07


12.12


12.22


12.33


Total risk-based capital


14.91


14.97


14.83


14.97


15.11


Common equity tier 1 capital ratio (CET 1)

10.99


11.00


11.04


11.11


11.20


Average shareholders' equity to average assets

14.17


14.29


14.42


14.48


14.45


Tangible equity to tangible assets (3)


8.49


8.15


8.24


8.33


8.19


Tangible common equity to tangible assets (3)

7.62


7.26


7.35


7.44


7.28






























(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) 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)

2023


2023


2023


2023


2022


2023

2022

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














Net income available to common shareholders

$         32,437


$           34,311


$           42,349


$           39,810


$           49,679


$           148,907

$         181,988


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

-


506


28


2,491


9


3,026

1,361


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

32,437


34,817


42,377


42,301


49,688


151,933

183,349


















Average total assets


$ 17,426,111


$    17,341,959


$    17,294,346


$    16,970,554


$    16,685,930


$     17,259,720

$    16,879,541

















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

0.74 %


0.80 %


0.98 %


1.01 %


1.18 %


0.88 %

1.09 %

















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














Net income available to common shareholders

$         32,437


$           34,311


$           42,349


$           39,810


$           49,679


$           148,907

$         181,988


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

-


506


28


2,491


9


3,026

1,361


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

32,437


34,817


42,377


42,301


49,688


151,933

183,349


















Average total shareholders' equity

$   2,468,525


$      2,478,662


$      2,493,096


$      2,458,067


$      2,410,761


$       2,474,627

$      2,515,509

















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

5.21 %


5.57 %


6.82 %


6.98 %


8.18 %


6.14 %

7.29 %

















Return on average tangible equity:














Net income available to common shareholders

$         32,437


$           34,311


$           42,349


$           39,810


$           49,679


$           148,907

$         181,988


Plus: amortization of intangibles (1)

1,772


1,787


1,803


1,818


2,007


7,180

8,120


Net income available to common shareholders before amortization of intangibles 

34,209


36,098


44,152


41,628


51,686


156,087

190,108


















Average total shareholders' equity

2,468,525


2,478,662


2,493,096


2,458,067


2,410,761


2,474,627

2,515,509


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

(1,125,593)


(1,127,404)


(1,129,155)


(1,131,027)


(1,132,894)


(1,128,277)

(1,136,062)


Average tangible equity

$   1,342,932


$      1,351,258


$      1,363,941


$      1,327,040


$      1,277,867


$       1,346,350

$      1,379,447

















Return on average tangible equity (annualized)  (2)

10.11 %


10.60 %


12.98 %


12.72 %


16.05 %


11.59 %

13.78 %


















Average tangible common equity

$   1,198,448


$      1,206,774


$      1,219,457


$      1,182,556


$      1,133,383


$       1,201,866

$      1,234,963

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

11.32 %


11.87 %


14.52 %


14.28 %


18.09 %


12.99 %

15.39 %

















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














Net income available to common shareholders

$         32,437


$           34,311


$           42,349


$           39,810


$           49,679


$           148,907

$         181,988


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

-


506


28


2,491


9


3,026

1,361


Plus: amortization of intangibles  (1)

1,772


1,787


1,803


1,818


2,007


7,180

8,120


Net income available to common shareholders before amortization of intangibles 














     and excluding after-tax restructuring and merger-related expenses

34,209


36,604


44,180


44,119


51,695


159,113

191,469


















Average total shareholders' equity

2,468,525


2,478,662


2,493,096


2,458,067


2,410,761


2,474,627

2,515,509


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

(1,125,593)


(1,127,404)


(1,129,155)


(1,131,027)


(1,132,894)


(1,128,277)

(1,136,062)


Average tangible equity

$   1,342,932


$      1,351,258


$      1,363,941


$      1,327,040


$      1,277,867


$       1,346,350

$      1,379,447

















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

10.11 %


10.75 %


12.99 %


13.48 %


16.05 %


11.82 %

13.88 %


















Average tangible common equity

$   1,198,448


$      1,206,774


$      1,219,457


$      1,182,556


$      1,133,383


$       1,201,866

$      1,234,963

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

11.32 %


12.03 %


14.53 %


15.13 %


18.10 %


13.24 %

15.50 %

















Efficiency ratio:
















Non-interest expense


$         99,503


$           97,939


$           96,437


$           96,125


$           90,455


$           390,002

$         356,966


Less: restructuring and merger-related expense

-


(641)


(35)


(3,153)


(11)


(3,830)

(1,723)


Non-interest expense excluding restructuring and merger-related expense

99,503


97,298


96,402


92,972


90,444


386,172

355,243


















Net interest income on a fully taxable equivalent basis

118,991


118,926


122,822


125,605


131,164


486,343

479,315


Non-interest income


30,074


30,879


31,841


27,653


27,770


120,447

117,391


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

$       149,065


$         149,805


$         154,663


$         153,258


$         158,934


$           606,790

$         596,706


Efficiency ratio


66.75 %


64.95 %


62.33 %


60.66 %


56.91 %


63.64 %

59.53 %

































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














Net income available to common shareholders

$         32,437


$           34,311


$           42,349


$           39,810


$           49,679


$           148,907

$         181,988


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

-


506


28


2,491


9


3,026

1,361

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

$         32,437


$           34,817


$           42,377


$           42,301


$           49,688


$           151,933

$         183,349

































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














Net income per common share - diluted

$              0.55


$               0.58


$               0.71


$               0.67


$               0.84


$                  2.51

$               3.02


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

-


0.01


-


0.04


-


0.05

0.02

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

$              0.55


$               0.59


$               0.71


$               0.71


$               0.84


$                  2.56

$               3.04





































Period End








Dec. 31,


Sept. 30,


June 30,


March 31,


Dec. 31,








2023


2023


2023


2023


2022




Tangible book value per share:














Total shareholders' equity

$   2,533,062


$      2,447,941


$      2,464,998


$      2,475,457


$      2,426,662





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

(1,124,811)


(1,126,583)


(1,128,371)


(1,130,172)


(1,131,990)





Less: preferred shareholder's equity

(144,484)


(144,484)


(144,484)


(144,484)


(144,484)





Tangible common equity

1,263,767


1,176,874


1,192,143


1,200,801


1,150,188





















Common shares outstanding

59,376,435


59,364,696


59,355,062


59,246,569


59,198,963




















Tangible book value per share

$           21.28


$             19.82


$             20.08


$             20.27


$             19.43




















Tangible common equity to tangible assets:














Total shareholders' equity

$   2,533,062


$      2,447,941


$      2,464,998


$      2,475,457


$      2,426,662





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

(1,124,811)


(1,126,583)


(1,128,371)


(1,130,172)


(1,131,990)





Tangible equity


1,408,251


1,321,358


1,336,627


1,345,285


1,294,672





Less: preferred shareholder's equity

(144,484)


(144,484)


(144,484)


(144,484)


(144,484)





Tangible common equity

1,263,767


1,176,874


1,192,143


1,200,801


1,150,188





















Total assets


17,712,374


17,344,377


17,356,954


17,274,626


16,931,905





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

(1,124,811)


(1,126,583)


(1,128,371)


(1,130,172)


(1,131,990)





Tangible assets


$ 16,587,563


$    16,217,794


$    16,228,583


$    16,144,454


$    15,799,915




















Tangible equity to tangible assets

8.49 %


8.15 %


8.24 %


8.33 %


8.19 %




















Tangible common equity to tangible assets

7.62 %


7.26 %


7.35 %


7.44 %


7.28 %




































(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)

2023


2023


2023


2023


2022


2023

2022

Pre-tax, pre-provision income:














Income before provision for income taxes

$         43,526


$           44,295


$           53,943


$           52,283


$           64,066


$       194,049

$         236,401


Add: provision for credit losses

4,803


6,327


3,028


3,577


3,123


17,734

(1,663)

Pre-tax, pre-provision income


$         48,329


$           50,622


$           56,971


$           55,860


$           67,189


$       211,783

$         234,738

















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














Income before provision for income taxes

$         43,526


$           44,295


$           53,943


$           52,283


$           64,066


$       194,049

$         236,401


Add: provision for credit losses

4,803


6,327


3,028


3,577


3,123


17,734

(1,663)


Add: restructuring and merger-related expenses

-


641


35


3,153


11


3,830

1,723

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

$         48,329


$           51,263


$           57,006


$           59,013


$           67,200


$       215,613

$         236,461

















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














Income before provision for income taxes

$         43,526


$           44,295


$           53,943


$           52,283


$           64,066


$       194,049

$         236,401


Add: provision for credit losses

4,803


6,327


3,028


3,577


3,123


17,734

(1,663)


Add: restructuring and merger-related expenses

-


641


35


3,153


11


3,830

1,723

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

48,329


51,263


57,006


59,013


67,200


215,613

236,461


















Average total assets


$ 17,426,111


$    17,341,959


$    17,294,346


$    16,970,554


$    16,685,930


$ 17,259,720

$    16,879,541

















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

1.10 %


1.17 %


1.32 %


1.41 %


1.60 %


1.25 %

1.40 %

















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














Income before provision for income taxes

$         43,526


$           44,295


$           53,943


$           52,283


$           64,066


$       194,049

$         236,401


Add: provision for credit losses

4,803


6,327


3,028


3,577


3,123


17,734

(1,663)


Add: restructuring and merger-related expenses

-


641


35


3,153


11


3,830

1,723

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

48,329


51,263


57,006


59,013


67,200


215,613

236,461


















Average total shareholders' equity

$   2,468,525


$      2,478,662


$      2,493,096


$      2,458,067


$      2,410,761


$   2,474,627

$      2,515,509

















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

7.77 %


8.21 %


9.17 %


9.74 %


11.06 %


8.71 %

9.40 %

















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














Income before provision for income taxes

$         43,526


$           44,295


$           53,943


$           52,283


$           64,066


$       194,049

$         236,401


Add: provision for credit losses

4,803


6,327


3,028


3,577


3,123


17,734

(1,663)


Add: amortization of intangibles

2,243


2,262


2,282


2,301


2,541


9,088

10,278


Add: restructuring and merger-related expenses

-


641


35


3,153


11


3,830

1,723

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

50,572


53,525


59,288


61,314


69,741


224,701

246,739


















Average total shareholders' equity

2,468,525


2,478,662


2,493,096


2,458,067


2,410,761


2,474,627

2,515,509


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

(1,125,593)


(1,127,404)


(1,129,155)


(1,131,027)


(1,132,894)


(1,128,277)

(1,136,062)


Average tangible equity

$   1,342,932


$      1,351,258


$      1,363,941


$      1,327,040


$      1,277,867


$   1,346,350

$      1,379,447

















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

14.94 %


15.72 %


17.44 %


18.74 %


21.65 %


16.69 %

17.89 %


















Average tangible common equity

$   1,198,448


$      1,206,774


$      1,219,457


$      1,182,556


$      1,133,383


$   1,201,866

$      1,234,963

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

16.74 %


17.60 %


19.50 %


21.03 %


24.41 %


18.70 %

19.98 %

































(1) Certain items excluded from the calculations consist of credit provisions, tax provisions and restructuring and merger-related expenses.

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













 

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SOURCE WesBanco, Inc.

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