27.07.2021 22:15:00

WesBanco Announces Second Quarter 2021 Financial Results

WHEELING, W.Va., July 27, 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 six months ended June 30, 2021.  Net income available to common shareholders for the period was $68.1 million, with diluted earnings per share of $1.01, compared to $4.5 million and $0.07 per diluted share, respectively, for the second quarter of 2020.  For the six months ended June 30, 2021, net income was $138.6 million, or $2.06 per diluted share, compared to $27.9 million, or $0.41 per diluted share, for the 2020 period.    Net income available to common shareholders, excluding after-tax restructuring and merger-related expenses, for the three months ended June 30, 2021, was $69.0 million, or $1.03 per diluted share, as compared to $4.9 million and $0.07 per diluted share, respectively, in the prior year quarter (non-GAAP measures).  On the same basis, net income for the six months ended June 30, 2021 was $140.3 million, or $2.09 per diluted share, as compared to $32.3 million, or $0.48 per diluted share, in the prior year period (non-GAAP measures).

WesBanco Logo (PRNewsfoto/WesBanco, Inc.)




For the Three Months Ended June 30,



For the Six Months Ended June 30,




2021


2020



2021


2020

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


Net Income


Diluted
Earnings
Per Share


Net Income


Diluted
Earnings
Per Share



Net Income


Diluted
Earnings
Per Share


Net Income


Diluted
Earnings
Per Share

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


$      69,022


$       1.03


$        4,858


$       0.07



$    140,279


$       2.09


$      32,334


$       0.48

Less: After-tax restructuring and merger-related expenses


(965)


(0.02)


(370)


-



(1,638)


(0.03)


(4,450)


(0.07)

Net income available to common shareholders (GAAP)


$      68,057


$       1.01


$        4,488


$       0.07



$    138,641


$       2.06


$      27,884


$       0.41

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

WesBanco believes that pre-tax, pre-provision income ("PTPP") (non-GAAP measure) provides a more comparable year-over-year measure as it removes the provision for credit losses to improve comparability from period-to-period.  For the three months ended June 30, 2021, PTPP, excluding restructuring and merger-related expenses, increased 3.8% year-over-year to $69.4 million, as compared to $66.8 million for the prior period.  In addition, on the same basis, the PTPP return on average assets was 1.63% for the three months ended June 30, 2021, as compared to 1.61% in the prior year period.  For the six months ended June 30, 2021, PTPP income, excluding restructuring and merger-related expenses, increased 3.7% year-over-year to $133.6 million, as compared to $128.8 million for the prior period.

Financial and operational highlights during the quarter ended June 30, 2021:

  • Deposit growth, excluding certificates of deposit ("CDs"), was 14.0% year-over-year, driven by growth in demand deposits
  • Trust assets under management increased 22.2% year-over-year to a record $5.5 billion, which was driven by both market appreciation and organic growth
  • Continued expense management demonstrated by a year-to-date efficiency ratio of 55.33% (non-GAAP measure)
  • Improving macro-economic factors favorably impacted the provision for credit losses under the Current Expected Credit Losses ("CECL") methodology, which drove both the net benefit in the provision for credit losses and the reduction in allowance for credit losses during the quarter
  • Key credit quality metrics such as non-performing assets, past due loans, and net loan charge-offs, as percentages of total portfolio loans, have remained at low levels and favorable to peer bank averages, those with total assets between $10 billion and $25 billion (based upon the prior four quarters)
  • During the quarter, we purchased approximately 1.5 million shares of our common stock on the open market under existing share repurchase authorizations
  • WesBanco Bank was named, for the third year in a row, one of the world's best banks in an independent ranking based solely on customer satisfaction and feedback
  • We anticipate our core banking software system conversion to be completed during the third quarter, which will provide enhanced products and services for our customers, as well as improved operational efficiencies

"We are pleased with WesBanco's performance during the second quarter of 2021 as we continue to deliver pre-tax, pre-provision earnings growth," said Todd F. Clossin, President and Chief Executive Officer of WesBanco.  "Our financial performance this quarter was again driven by strong fee income growth and disciplined expense management.  In addition, we remain focused on ensuring a strong organization for our shareholders and will continue to appropriately return capital to them."

Mr. Clossin added, "The successful execution of our growth and diversification plans has enabled WesBanco to transform into an emerging regional financial institution with the majority of our organization in higher growth markets.  This diversification, combined with our experienced teams, make us well-positioned to drive loan growth once the excess liquidity throughout our economies is absorbed.  In fact, we have continued to make strategic hires across our organization and markets in order to strengthen our teams and enhance our ability to leverage growth opportunities once they fully return."

Balance Sheet
Portfolio loans of $10.4 billion as of June 30, 2021 decreased 6.5% when compared to the prior year period, due primarily to forgiveness of approximately $662 million of SBA Payroll Protection Program ("SBA PPP") loans and lower residential real estate and consumer loans.  Further, when excluding SBA PPP loans, total loans decreased 4.1% year-over-year and 0.7% sequentially.  During the second quarter, approximately 2,320 customers applied for and received forgiveness of their SBA PPP loans totaling $327 million; while our lenders assisted more than 780 businesses with Round 2 SBA PPP loans totaling approximately $27 million, through its conclusion at the end of May.

Total deposits increased 9.3% year-over-year to $13.3 billion due primarily to stimulus funds previously received by our customers and increased personal savings, which more than offset a $324.5 million reduction in CDs.  Deposits, excluding CDs, increased 14.0% year-over-year, driven by a 14.4% increase in total demand deposits, which represent approximately 57% of total deposits.

Credit Quality
As of June 30, 2021, 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, we realized annualized net loan recoveries to average loans of three basis points.  Reflecting improved macroeconomic factors and qualitative adjustments in the CECL calculation, the allowance for credit losses specific to total portfolio loans at June 30, 2021 was $140.7 million, or 1.36% of total loans; or, when excluding SBA PPP loans, 1.43% of total portfolio loans.  The improvements in these macroeconomic factors resulted in a negative provision for credit losses of $21.0 million for the second quarter of 2021.

Net Interest Margin and Income
The net interest margin of 3.12% for the second quarter of 2021 decreased 15 basis points sequentially and 20 basis points from the second quarter of 2020, primarily due to the lower interest rate environment, and a mix shift of higher securities as a percentage of total assets.  As a result of higher cash balances from additional stimulus funds received by our customers and their higher personal savings creating extra liquidity, investment securities increased by $1.0 billion year-over-year and represent approximately 23% of total assets, as of June 30, 2021.  Reflecting the significantly lower interest rate environment, we aggressively reduced our deposit rates throughout the past year, which helped to lower deposit funding costs 13 basis points year-over-year to 17 basis points for the second quarter of 2021, or 12 basis points when including non-interest bearing deposits.  The total cost of deposits was down 2 basis points sequentially.  Furthermore, we continued to lower the cost of FHLB borrowings, down 17 basis points quarter-over-quarter, as second quarter average borrowings declined $0.1 billion, or 20.1%, from the first quarter to $0.4 billion, which have a remaining average life of less than one year.  Accretion from acquisitions benefited the second quarter net interest margin by 12 basis points, as compared to 19 basis points in the prior year period and 13 basis points during the first quarter of 2021.  Lastly, the forgiveness of existing and funding of new SBA PPP loans benefited the second quarter of 2021 net interest margin by a net 5 basis points, and should positively impact the net interest margin as the loans are forgiven during the next few quarters.

Net interest income decreased $3.2 million, or 2.7%, during the second quarter of 2021, as compared to the same quarter of 2021, reflecting lower loan yields due to repricing of existing loans and lower new offered rates in the current market environment, lower accretion from purchase accounting, and lower rates on new investment securities purchased, partially offset by lower interest paid on deposits and borrowings as described above.  For the six months ended June 30, 2021, net interest income decreased $6.8 million, or 2.9%, due to the reasons discussed for the three-month period comparison.

Non-Interest Income
For the second quarter of 2021, non-interest income of $36.1 million increased $3.3 million, or 9.9%, from the second quarter of 2020, driven primarily by a net gain on other real estate owned and other assets, electronic banking fees, and trust fees, which were partially offset by lower other income and net securities gains.  The net gain on other real estate owned and other assets of $4.0 million was due to a gain earned on an investment made by WesBanco's Community Development Corporation in a start-up firm more than ten years ago that was recently acquired by a public company.  Electronic banking fees increased $1.0 million, or 24.4%, due primarily to increased point-of-sale transactions and ATM volumes.  Trust fees increased $0.9 million, or 15.3%, due to market value appreciation and organic growth.  Loan swap-related income, which is recorded in other income, of $1.0 million was offset during the quarter by a negative $1.0 million of fair market value adjustments, as compared, respectively, to $3.5 million and a negative $0.5 million last year.

Primarily reflecting the items discussed above, non-interest income, for the six months ended June 30, 2021, increased $8.5 million, or 13.9%.  In addition, reflecting the low interest rate environment and organic growth, mortgage banking fees increased $3.3 million, or 37.3%, compared to the prior year period, net of fair value adjustments, while service charges on deposits were lower due to higher consumer deposits associated with the three rounds of stimulus to-date and lower general consumer spending, resulting in fewer eligible account fees. 

Non-Interest Expense
Total operating expenses continued to be well-controlled through company-wide efforts to effectively manage discretionary costs and full-time equivalent employee counts, as demonstrated by a year-to-date efficiency ratio of 55.33%.  Excluding restructuring and merger-related expenses, non-interest expense for the three months ended June 30, 2021 decreased $2.4 million, or 2.9%, to $82.6 million compared to the prior year period, primarily due to lower FDIC insurance expense, as well as continuing cost control measures over certain discretionary expenses.  FDIC insurance expense decreased $2.2 million, or 92.4%, due to certain prior period reporting adjustments resulting in a $1.0 million refund and improved risk factors.  Equipment and software expense for the second quarter of 2021 increased $1.6 million, or 27.2%, year-over-year due to increased asset size and the SBA PPP loan program.  Other operating expenses decreased $1.1 million, or 6.1%, reflecting a $0.8 million state franchise tax refund.

On a similar basis, non-interest expense during the first half of 2021 decreased $3.1 million, or 1.8%, compared to the prior year period, due primarily to lower salaries and wages from financial center closures during the past year, lower FDIC insurance, and discretionary cost control which more than offset higher equipment and software costs, higher marketing expense from product advertising and brand awareness campaigns that were delayed from 2020 due to the COVID-19 pandemic, and mid-2020 annual salary increases.

Capital
WesBanco continues to maintain what we believe are strong regulatory capital ratios, as both consolidated and bank-level regulatory capital ratios are well above the applicable "well-capitalized" standards promulgated by bank regulators and the BASEL III capital standards.  At June 30, 2021, Tier I leverage was 10.42%, Tier I risk-based capital ratio was 15.15%, common equity Tier 1 capital ratio ("CET 1") was 13.83%, and total risk-based capital was 17.68%.

During the second quarter of 2021, WesBanco repurchased 1,478,882 shares of its outstanding common stock on the open market at a total cost of $55.6 million.  As of June 30, 2021, approximately 1.9 million shares remained for repurchase under existing share repurchase authorizations.

Conference Call and Webcast
WesBanco will host a conference call to discuss the Company's financial results for the second quarter of 2021 at 10:00 a.m. ET on Wednesday, July 28, 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 10150982.  The replay will begin at approximately 12:00 p.m. ET on July 28, and end at 12 a.m. ET on August 11.  An archive of the webcast will be available for one year on the Investor Relations section of the Company's website (www.wesbanco.com).

Forward-Looking Statements
Forward-looking statements in this report relating to WesBanco's plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  The information contained in this report should be read in conjunction with WesBanco's Form 10-K for the year ended December 31, 2020 and documents subsequently filed by WesBanco with the Securities and Exchange Commission ("SEC"), including WesBanco's Form 10-Q for the quarter ended March 31, 2021, which are available at the SEC's website, www.sec.gov or at WesBanco's website, www.WesBanco.com.  Investors are cautioned that forward-looking statements, which are not historical fact, involve risks and uncertainties, including those detailed in WesBanco's most recent Annual Report on Form 10-K filed with the SEC under "Risk Factors" in Part I, Item 1A.  Such statements are subject to important factors that could cause actual results to differ materially from those contemplated by such statements, including, without limitation, the effects of changing regional and national economic conditions including the effects of the COVID-19 pandemic; changes in interest rates, spreads on earning assets and interest-bearing liabilities, and associated interest rate sensitivity; sources of liquidity available to WesBanco and its related subsidiary operations; potential future credit losses and the credit risk of commercial, real estate, and consumer loan customers and their borrowing activities; actions of the Federal Reserve Board, the Federal Deposit Insurance Corporation, the SEC, the Financial Institution Regulatory Authority, the Municipal Securities Rulemaking Board, the Securities Investors Protection Corporation, and other regulatory bodies; potential legislative and federal and state regulatory actions and reform, including, without limitation, the impact of the implementation of the Dodd-Frank Act; adverse decisions of federal and state courts; fraud, scams and schemes of third parties; cyber-security breaches; competitive conditions in the financial services industry; rapidly changing technology affecting financial services; marketability of debt instruments and corresponding impact on fair value adjustments; and/or other external developments materially impacting WesBanco's operational and financial performance.  WesBanco does not assume any duty to update forward-looking statements.

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

About WesBanco, Inc.
Founded in 1870, WesBanco, Inc. (www.wesbanco.com) is a diversified and balanced financial services company that delivers large bank capabilities with a community bank feel.  Our distinct long-term growth strategies are built upon unique sustainable advantages permitting us to span six states with meaningful market share.  Built upon our 'Better Banking Pledge', our customer-centric service culture is focused on growing long-term relationships by pledging to serve all personal and business customer needs efficiently and effectively.  In addition to a full range of online and mobile banking options and a full-suite of commercial products and services, WesBanco provides trust, wealth management, securities brokerage, and private banking services through our century-old Trust and Investment Services department, with approximately $5.5 billion of assets under management (as of June 30, 2021).  WesBanco's banking subsidiary, WesBanco Bank, Inc., operates 206 financial centers in the states of Indiana, Kentucky, Maryland, Ohio, Pennsylvania, and West Virginia.  Additionally, WesBanco operates an insurance agency, WesBanco Insurance Services, Inc., and a full service broker/dealer, WesBanco Securities, Inc.

 

 

WESBANCO, INC.












Consolidated Selected Financial Highlights











Page 5

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






























For the Three Months Ended


For the Six Months Ended

Statement of Income

June 30,


June 30,

Interest and dividend income

2021


2020


% Change


2021


2020


% Change


Loans, including fees

$    105,968


$     115,068


(7.9)


$    215,327


$     234,571


(8.2)


Interest and dividends on securities:














Taxable 

12,900


14,047


(8.2)


24,027


31,034


(22.6)



Tax-exempt

3,952


4,302


(8.1)


7,862


8,758


(10.2)




Total interest and dividends on securities

16,852


18,349


(8.2)


31,889


39,792


(19.9)


Other interest income 

507


1,277


(60.3)


1,166


2,779


(58.0)

          Total interest and dividend income

123,327


134,694


(8.4)


248,382


277,142


(10.4)

Interest expense













Interest bearing demand deposits

1,009


1,350


(25.3)


2,052


4,745


(56.8)


Money market deposits

551


879


(37.3)


1,130


3,231


(65.0)


Savings deposits

261


297


(12.1)


525


1,220


(57.0)


Certificates of deposit

2,026


3,514


(42.3)


4,396


7,568


(41.9)




Total interest expense on deposits

3,847


6,040


(36.3)


8,103


16,764


(51.7)


Federal Home Loan Bank borrowings

1,781


7,293


(75.6)


4,195


15,525


(73.0)


Other short-term borrowings

40


279


(85.7)


159


1,149


(86.2)


Subordinated debt and junior subordinated debt 

1,804


2,069


(12.8)


3,593


4,530


(20.7)




Total interest expense

7,472


15,681


(52.3)


16,050


37,968


(57.7)

Net interest income 

115,855


119,013


(2.7)


232,332


239,174


(2.9)


Provision for credit losses

(21,025)


61,841


(134.0)


(48,984)


91,661


(153.4)

Net interest income after provision for credit losses

136,880


57,172


139.4


281,316


147,513


90.7

Non-interest income













Trust fees

7,148


6,202


15.3


14,780


13,154


12.4


Service charges on deposits

4,876


4,323


12.8


9,770


10,940


(10.7)


Electronic banking fees

5,060


4,066


24.4


9,426


8,320


13.3


Net securities brokerage revenue

1,829


1,384


32.2


3,352


3,063


9.4


Bank-owned life insurance

1,707


1,752


(2.6)


3,416


3,521


(3.0)


Mortgage banking income

7,830


7,531


4.0


12,094


8,807


37.3


Net securities gains

477


1,299


(63.3)


756


2,790


(72.9)


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

4,014


(66)


 NM 


4,189


103


 NM 


Other income

3,171


6,369


(50.2)


11,537


10,171


13.4




Total non-interest income

36,112


32,860


9.9


69,320


60,869


13.9

Non-interest expense













Salaries and wages

37,435


36,773


1.8


74,324


75,683


(1.8)


Employee benefits

9,268


10,138


(8.6)


19,534


20,511


(4.8)


Net occupancy

6,427


6,634


(3.1)


13,605


13,717


(0.8)


Equipment and software

7,281


5,722


27.2


14,045


11,761


19.4


Marketing

1,802


1,567


15.0


4,185


2,705


54.7


FDIC insurance 

181


2,395


(92.4)


1,462


4,508


(67.6)


Amortization of intangible assets

2,873


3,365


(14.6)


5,769


6,739


(14.4)


Restructuring and merger-related expense

1,222


468


161.1


2,074


5,633


(63.2)


Other operating expenses  

17,323


18,440


(6.1)


35,141


35,578


(1.2)




Total non-interest expense

83,812


85,502


(2.0)


170,139


176,835


(3.8)

Income before provision for income taxes

89,180


4,530


 NM 


180,497


31,547


472.2


Provision for income taxes 

18,592


42


 NM 


36,793


3,663


904.4

Net Income

70,588


4,488


 NM 


143,704


27,884


415.4

Preferred stock dividends

2,531


-


100.0


5,063


-


100.0

Net income available to common shareholders

$       68,057


$         4,488


 NM 


$    138,641


$       27,884


397.2































Taxable equivalent net interest income

$    116,906


$  120,156


(2.7)


$    234,423


$  241,502


(2.9)
















Per common share data












Net income per common share - basic

$           1.02


$           0.07


 NM 


$           2.07


$           0.41


404.9

Net income per common share - diluted

1.01


0.07


 NM 


2.06


0.41


402.4

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

1.03


0.07


 NM 


2.09


0.48


335.4

Dividends declared

0.33


0.32


3.1


0.66


0.64


3.1

Book value (period end)

39.96


38.23


4.5


39.96


38.23


4.5

Tangible book value (period end) (1)

22.61


21.10


7.2


22.61


21.10


7.2

Average common shares outstanding - basic

66,894,398


67,104,628


(0.3)


67,078,036


67,295,589


(0.3)

Average common shares outstanding - diluted

67,066,592


67,181,755


(0.2)


67,239,548


67,410,460


(0.3)

Period end common shares outstanding

65,970,149


67,211,192


(1.8)


65,970,149


67,211,192


(1.8)

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 Six Months Ended






June 30,






2021


2020


% Change




















Return on average assets


1.66

%

0.35

%

374.29

%






Return on average assets, excluding













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


1.68


0.40


320.00







Return on average equity


10.04


2.16


364.81







Return on average equity, excluding













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


10.15


2.50


306.00







Return on average tangible equity (1)


17.62


4.56


286.40







Return on average tangible equity, excluding 













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


17.82


5.17


244.68







Return on average tangible common equity (1)


19.32


4.56


323.68







Return on average tangible common equity, excluding 













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


19.54


5.17


277.95







Yield on earning assets (2) 


3.41


3.96


(13.89)







Cost of interest bearing liabilities


0.34


0.77


(55.84)







Net interest spread (2)


3.07


3.19


(3.76)







Net interest margin (2)


3.19


3.42


(6.73)







Efficiency (1) (2)


55.33


56.62


(2.28)







Average loans to average deposits


82.47


93.18


(11.49)







Annualized net loan charge-offs/average loans


(0.00)


0.13


(100.00)







Effective income tax rate 


20.38


11.61


75.54





























































For the Three Months Ended





June 30,


Mar. 31,


Dec. 31,


Sept. 30,


June 30,





2021


2021


2020


2020


2020
















Return on average assets


1.60

%

1.72

%

1.21

%

0.98

%

0.11

%


Return on average assets, excluding













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


1.62


1.74


1.22


1.05


0.12



Return on average equity


9.74


10.33


7.28


6.17


0.69



Return on average equity, excluding













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


9.88


10.43


7.33


6.60


0.75



Return on average tangible equity (1)


17.04


18.22


13.18


11.56


1.98



Return on average tangible equity, excluding 













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


17.27


18.39


13.28


12.31


2.08



Return on average tangible common equity (1)


18.67


20.00


14.49


12.21


1.98



Return on average tangible common equity, excluding 










.



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


18.92


20.18


14.60


13.00


2.08



Yield on earning assets (2) 


3.32


3.51


3.61


3.66


3.75



Cost of interest bearing liabilities


0.31


0.37


0.45


0.53


0.63



Net interest spread (2)


3.01


3.14


3.16


3.13


3.12



Net interest margin (2)


3.12


3.27


3.31


3.31


3.32



Efficiency (1) (2) 


53.97


56.71


57.06


55.23


55.57



Average loans to average deposits


79.82


85.27


89.64


90.88


91.87



Annualized net loan charge-offs and recoveries /average loans


(0.03)


0.02


0.02


(0.00)


0.07



Effective income tax rate 


20.85


19.93


18.13


15.66


0.93



Trust assets, market value at period end


$ 5,480,995


$ 5,244,370


$ 5,025,565


$      4,649,054


$      4,487,042
















(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


June 30,



December 31,

December 31, 2020

Assets



2021


2020


% Change

2020

to June 30, 2021

Cash and due from banks


$       208,992


$      219,022


(4.6)

$          184,361

13.4

Due from banks - interest bearing


637,312


671,312


(5.1)

721,086

(11.6)

Securities:










Equity securities, at fair value


13,494


12,277


9.9

13,047

3.4


Available-for-sale debt securities, at fair value


2,964,264


2,073,949


42.9

1,978,136

49.9


Held-to-maturity debt securities (fair values of $934,487; $802,666 










and $768,183, respectively)


902,172


766,416


17.7

731,212

23.4



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


(227)


(817)


72.2

(326)

30.4


Net held-to-maturity debt securities


901,945


765,599


17.8

730,886

23.4



Total securities


3,879,703


2,851,825


36.0

2,722,069

42.5

Loans held for sale


41,461


53,324


(22.2)

168,378

(75.4)

Portfolio loans:










Commercial real estate


5,705,246


5,694,457


0.2

5,705,392

(0.0)


Commercial and industrial


2,119,186


2,496,096


(15.1)

2,407,438

(12.0)


Residential real estate 


1,625,632


1,893,544


(14.1)

1,720,961

(5.5)


Home equity


631,059


646,323


(2.4)

646,387

(2.4)


Consumer 


276,069


343,723


(19.7)

309,055

(10.7)

Total portfolio loans, net of unearned income


10,357,192


11,074,143


(6.5)

10,789,233

(4.0)

Allowance for credit losses - loans  (1)


(140,730)


(168,475)


16.5

(185,827)

24.3



Net portfolio loans


10,216,462


10,905,668


(6.3)

10,603,406

(3.6)

Premises and equipment, net


235,227


255,306


(7.9)

249,421

(5.7)

Accrued interest receivable


64,020


59,151


8.2

66,790

(4.1)

Goodwill and other intangible assets, net


1,157,322


1,166,853


(0.8)

1,163,091

(0.5)

Bank-owned life insurance


309,454


303,022


2.1

306,038

1.1

Other assets


216,914


269,912


(19.6)

240,970

(10.0)

Total Assets


$ 16,966,867


$ 16,755,395


1.3

$     16,425,610

3.3












Liabilities









Deposits:










Non-interest bearing demand


$   4,409,221


$   4,067,903


8.4

$       4,070,835

8.3


Interest bearing demand


3,214,484


2,596,132


23.8

2,839,536

13.2


Money market


1,771,686


1,610,248


10.0

1,685,927

5.1


Savings deposits


2,438,328


2,103,154


15.9

2,214,565

10.1


Certificates of deposit


1,484,536


1,809,016


(17.9)

1,618,510

(8.3)



Total deposits


13,318,255


12,186,453


9.3

12,429,373

7.2

Federal Home Loan Bank borrowings


313,960


1,129,631


(72.2)

549,003

(42.8)

Other short-term borrowings


135,267


390,777


(65.4)

241,950

(44.1)

Subordinated debt and junior subordinated debt 


192,571


192,080


0.3

192,291

0.1



Total borrowings


641,798


1,712,488


(62.5)

983,244

(34.7)

Accrued interest payable


3,342


6,040


(44.7)

4,314

(22.5)

Other liabilities


222,636


280,893


(20.7)

251,942

(11.6)

Total Liabilities


14,186,031


14,185,874


0.0

13,668,873

3.8












Shareholders' Equity









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










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










liquidation preference $150.0 million, issued and outstanding at June 30, 2021 and 










December 31, 2020 and 0 shares issued and outstanding at June 30, 2020, respectively.


144,484


-


100.0

144,484

-

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










2021 and 2020, respectively; 68,081,306, 68,078,116 and 68,081,306 shares










issued, respectively; 65,970,149, 67,211,192 and 67,254,706 shares


141,834


141,827


0.0

141,834

-


outstanding, respectively









Capital surplus


1,632,460


1,633,079


(0.0)

1,634,815

(0.1)

Retained earnings


925,977


782,990


18.3

831,688

11.3

Treasury stock ( 2,111,157, 866,924 and 826,600 shares - at cost, respectively)


(74,996)


(27,518)


(172.5)

(25,949)

(189.0)

Accumulated other comprehensive income


12,586


40,516


(68.9)

31,359

(59.9)

Deferred benefits for directors


(1,509)


(1,373)


(9.9)

(1,494)

(1.0)

Total Shareholders' Equity


2,780,836


2,569,521


8.2

2,756,737

0.9

Total Liabilities and Shareholders' Equity


$ 16,966,867


$ 16,755,395


1.3

$     16,425,610

3.3

 

WESBANCO, INC.






Consolidated Selected Financial Highlights





Page 8

(unaudited, dollars in thousands, except shares)






Balance sheet


June 30,


March 31,


Assets



2021


2021

% Change

Cash and due from banks


$       208,992


$      209,040

(0.0)

Due from banks - interest bearing


637,312


550,008

15.9

Securities:







Equity securities, at fair value


13,494


13,123

2.8


Available-for-sale, at fair value


2,964,264


2,775,212

6.8


Held-to-maturity (fair values of $934,487 and 839,872, respectively)


902,172


813,740

10.9



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


(227)


(290)

21.7


Net held-to-maturity debt securities


901,945


813,450

21.7



Total securities


3,879,703


3,601,785

10.9

Loans held for sale


41,461


153,520

7.7

Portfolio Loans:







Commercial real estate


5,705,246


5,712,742

(0.1)


Commercial and industrial


2,119,186


2,422,735

(12.5)


Residential real estate 


1,625,632


1,644,422

(1.1)


Home equity


631,059


634,018

(0.5)


Consumer 


276,069


289,395

(4.6)

Total portfolio loans, net of unearned income


10,357,192


10,703,312

(3.2)

Allowance for credit losses - loans


(140,730)


(160,040)

12.1


Net portfolio loans


10,216,462


10,543,272

(3.1)

Premises and equipment, net


235,227


239,863

(1.9)

Accrued interest receivable


64,020


68,896

(7.1)

Goodwill and other intangible assets, net


1,157,322


1,160,195

(0.2)

Bank-owned life insurance


309,454


307,747

0.6

Other assets


216,914


223,462

(2.9)

Total Assets


$ 16,966,867


$ 17,057,788

(0.5)









Liabilities






Deposits:







Non-interest bearing demand


4,409,221


$   4,460,049

(1.1)


Interest bearing demand


3,214,484


3,126,186

2.8


Money market


1,771,686


1,771,703

(0.0)


Savings deposits


2,438,328


2,373,987

2.7


Certificates of deposit


1,484,536


1,555,074

(4.5)



Total deposits


13,318,255


13,286,999

0.2

Federal Home Loan Bank borrowings


313,960


433,984

(27.7)

Other short-term borrowings


135,267


137,218

(1.4)

Subordinated debt and junior subordinated debt 


192,571


192,430

0.1



Total borrowings


641,798


763,632

(16.0)

Accrued interest payable


3,342


3,224

3.7

Other liabilities


222,636


218,411

1.9

Total liabilities


14,186,031


14,272,266

(0.6)









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 at June 30, 2021







and March 31, 2021, respectively


144,484


144,484

-

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







68,081,306 and 68,081,306 shares issued, respectively;







65,970,149 and 67,282,134 shares outstanding, respectively


141,834


141,834

-

Capital surplus


1,632,460


1,636,103

(0.2)

Retained earnings


925,977


879,786

5.3

Treasury stock (2,111,157 and 799,172 shares - at cost)


(74,996)


(24,989)

(200.1)

Accumulated other comprehensive income 


12,586


9,803

28.4

Deferred benefits for directors


(1,509)


(1,499)

(0.7)

Total Shareholders' Equity


2,780,836


2,785,522

(0.2)

Total Liabilities and Shareholders' Equity


$ 16,966,867


$ 17,057,788

(0.5)

 

WESBANCO, INC.

















Consolidated Selected Financial Highlights
















Page 9

(unaudited, dollars in thousands)

















Average balance sheet and

















net interest margin analysis


For the Three Months Ended June 30,



For the Six Months Ended June 30,




2021


2020




2021


2020





Average 

Average



Average 

Average



Average 

Average



Average 

Average


Assets


Balance

Rate



Balance

Rate



Balance

Rate



Balance

Rate


Due from banks - interest bearing


$       696,967

0.09

%


$      637,979

0.17

%


$       736,387

0.09

%


$      385,755

0.35

%

Loans, net of unearned income (1)


10,641,970

3.99



10,955,694

4.22



10,765,483

4.03



10,665,441

4.42


Securities: (2)

















    Taxable


3,042,009

1.70



2,288,409

2.47



2,676,198

1.81



2,432,539

2.57


    Tax-exempt (3)


599,980

3.34



622,637

3.52



590,144

3.40



634,612

3.51


        Total securities


3,641,989

1.97



2,911,046

2.69



3,266,342

2.10



3,067,151

2.76


Other earning assets 


28,702

4.95



71,493

5.68



30,958

5.45



70,537

6.02


         Total earning assets (3)


15,009,628

3.32

%


14,576,212

3.75

%


14,799,170

3.41

%


14,188,884

3.96

%

Other assets


2,032,519




2,138,999




2,041,154




2,061,191



Total Assets


$ 17,042,147




$ 16,715,211




$ 16,840,324




$ 16,250,075




















Liabilities and Shareholders' Equity

















Interest bearing demand deposits


$   3,147,915

0.13

%


$   2,558,768

0.21

%


$   3,059,830

0.14

%


$   2,450,605

0.39

%

Money market accounts 


1,774,556

0.12



1,603,395

0.22



1,750,194

0.13



1,573,579

0.41


Savings deposits


2,414,824

0.04



2,060,392

0.06



2,353,083

0.04



2,006,940

0.12


Certificates of deposit


1,519,590

0.53



1,846,929

0.77



1,551,692

0.57



1,918,189

0.79


    Total interest bearing deposits


8,856,885

0.17



8,069,484

0.30



8,714,799

0.19



7,949,313

0.42


Federal Home Loan Bank borrowings


390,020

1.83



1,381,093

2.12



438,932

1.93



1,426,134

2.19


Other borrowings


130,171

0.12



365,793

0.31



160,753

0.20



350,917

0.66


Subordinated debt and junior subordinated debt 


192,483

3.76



192,021

4.33



192,412

3.77



195,257

4.67


      Total interest bearing liabilities (4)


9,569,559

0.31

%


10,008,391

0.63

%


9,506,896

0.34

%


9,921,621

0.77

%

Non-interest bearing demand deposits


4,474,784




3,856,291




4,338,546




3,496,784



Other liabilities


196,350




247,591




208,861




233,166



Shareholders' equity


2,801,455




2,602,938




2,786,021




2,598,504



Total Liabilities and Shareholders' Equity


$ 17,042,147




$ 16,715,211




$ 16,840,324




$ 16,250,075



Taxable equivalent net interest spread



3.01

%



3.12

%



3.07

%



3.19

%

Taxable equivalent net interest margin 



3.12

%



3.32

%



3.19

%



3.42

%




















































(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 $6.5 million and $2.6 million for the three months ended June 30, 2021 and 2020, respectively, and were $14.7 million and $3.3 million for the six months ended June 30, 2021 and 2020, respectively.  As part of loan fees, PPP loan fees were $7.8 million and $2.1 million for the three months ended June 30, 2021 and 2020, respectively and $17.7 million and $2.1 million for the six months ended June 30, 2021 and 2020, respectively.  Additionally, loan accretion included in interest income on loans acquired from prior acquisitions was $3.8 million and $4.1 million for the three months ended June 30, 2021 and 2020, respectively. and $7.3 million and $8.2 million for the six months ended June 30, 2021 and 2020, respectively. 

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

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

(4) Accretion on interest bearing liabilities acquired from prior acquisitions was $0.8 million and $2.6 million for the three months ended June 30, 2021 and 2020, respectively, and $1.9 million and $6.0 million for the six months ended June 30, 2021 and 2020, respectively.

 

WESBANCO, INC.










Consolidated Selected Financial Highlights









 Page 10 

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













Quarter Ended

Statement of Income

June 30,


Mar. 31,


Dec. 31,


Sept.  30,


June 30,

Interest and dividend income

2021


2021


2020


2020


2020


Loans, including fees

$   105,968


$   109,358


$     114,582


$     116,524


$     115,068


Interest and dividends on securities:












Taxable 

12,900


11,127


10,892


11,669


14,047



Tax-exempt

3,952


3,910


4,059


4,182


4,302




Total interest and dividends on securities

16,852


15,037


14,951


15,851


18,349


Other interest income 

507


659


945


1,282


1,277

          Total interest and dividend income

123,327


125,054


130,478


133,657


134,694

Interest expense











Interest bearing demand deposits

1,009


1,043


1,099


1,225


1,350


Money market deposits

551


578


678


707


879


Savings deposits

261


264


280


303


297


Certificates of deposit

2,026


2,370


2,797


3,197


3,514




Total interest expense on deposits

3,847


4,255


4,854


5,432


6,040


Federal Home Loan Bank borrowings

1,781


2,414


3,719


5,457


7,293


Other short-term borrowings

40


118


275


304


279


Subordinated debt and junior subordinated debt

1,804


1,789


1,918


1,871


2,069




Total interest expense

7,472


8,576


10,766


13,064


15,681

Net interest income 

115,855


116,478


119,712


120,593


119,013


Provision for credit losses

(21,025)


(27,958)


(209)


16,288


61,841

Net interest income after provision for credit losses

136,880


144,436


119,921


104,305


57,172

Non-interest income











Trust fees

7,148


7,631


6,754


6,426


6,202


Service charges on deposits

4,876


4,894


5,671


5,332


4,323


Electronic banking fees

5,060


4,365


4,424


4,780


4,066


Net securities brokerage revenue

1,829


1,524


1,402


1,725


1,384


Bank-owned life insurance

1,707


1,709


1,750


2,088


1,752


Mortgage banking income

7,830


4,264


5,442


8,488


7,531


Net securities gains

477


279


691


787


1,299


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

4,014


175


18


(19)


(66)


Other income

3,171


8,367


6,553


5,005


6,369




Total non-interest income

36,112


33,208


32,705


34,612


32,860

Non-interest expense











Salaries and wages

37,435


36,890


39,140


38,342


36,773


Employee benefits

9,268


10,266


10,608


10,604


10,138


Net occupancy

6,427


7,177


6,771


7,092


6,634


Equipment and software

7,281


6,765


6,810


6,229


5,722


Marketing

1,802


2,384


1,675


1,577


1,567


FDIC insurance 

181


1,282


1,278


1,948


2,395


Amortization of intangible assets

2,873


2,896


3,327


3,346


3,365


Restructuring and merger-related expense

1,222


851


484


3,608


468


Other operating expenses  

17,323


17,816


17,976


17,198


18,440




Total non-interest expense

83,812


86,327


88,069


89,943


85,502

Income before provision for income taxes

89,180


91,317


64,557


48,974


4,530


Provision for income taxes 

18,592


18,202


11,703


7,669


42

Net Income

70,588


73,115


52,854


41,305


4,488

Preferred stock dividends

2,531


2,531


2,644


-


-

Net income available to common shareholders

$     68,057


$     70,584


$       50,210


$       41,305


$         4,488














Taxable equivalent net interest income

$  116,906


$   117,517


$  120,790


$  121,705


$  120,156














Per common share data










Net income per common share - basic

$          1.02


$         1.05


$           0.75


$           0.61


$           0.07

Net income per common share - diluted

1.01


1.05


0.75


0.61


0.07

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

1.03


1.06


0.76


0.66


0.07

Dividends declared

0.33


0.33


0.32


0.32


0.32

Book value (period end)

39.96


39.25


38.84


38.51


38.23

Tangible book value (period end) (1)

22.61


22.21


21.75


21.39


21.10

Average common shares outstanding - basic

66,894,398


67,263,714


67,238,005


67,214,759


67,104,628

Average common shares outstanding - diluted

67,066,592


67,335,418


67,304,442


67,269,303


67,181,755

Period end common shares outstanding

65,970,149


67,282,134


67,254,706


67,216,012


67,211,192

Period end preferred shares outstanding

150,000


150,000


150,000


150,000


-

Full time equivalent employees

2,459


2,490


2,612


2,618


2,676














(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 11 

(unaudited, dollars in thousands)
















Quarter Ended






June 30,


Mar. 31,


Dec. 31,


Sept. 30,


June 30,


Asset quality data


2021


2021


2020


2020


2020


Non-performing assets:













Troubled debt restructurings - accruing

$      5,799


$     3,563


$     3,927


$     4,191


$     5,105



Non-accrual loans:














Troubled debt restructurings


1,664


1,768


1,828


1,818


1,339




Other non-accrual loans


34,548


32,807


35,052


35,448


34,119




    Total non-accrual loans


36,212


34,575


36,880


37,266


35,458




    Total non-performing loans 


42,011


38,138


40,807


41,457


40,563



Other real estate and repossessed assets

773


393


549


738


1,212




Total non-performing assets


$   42,784


$   38,531


$   41,356


$   42,195


$   41,775
















Past due loans (1):













Loans past due 30-89 days


$   21,233


$   20,602


$   31,596


$   17,338


$   30,595



Loans past due 90 days or more


8,318


12,824


8,846


10,170


36,903




Total past due loans


$   29,551


$   33,426


$   40,442


$   27,508


$   67,498
















Criticized and classified loans (2):













Criticized loans


$ 319,448


$ 340,943


$ 362,295


$ 248,264


$ 148,580



Classified loans


136,927


114,884


132,650


108,594


98,127




Total criticized and classified loans

$ 456,375


$ 455,827


$ 494,945


$ 356,858


$ 246,707
















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

0.21

%

0.19

%

0.29

%

0.16

%

0.28

%

Loans past due 90 days or more / total portfolio loans

0.08


0.12


0.08


0.09


0.33


Non-performing loans / total portfolio loans

0.41


0.36


0.38


0.38


0.37


Non-performing assets/total portfolio loans, other












real estate and repossessed assets


0.41


0.36


0.38


0.38


0.38


Non-performing assets / total assets


0.25


0.23


0.25


0.26


0.25


Criticized and classified loans / total portfolio loans

4.41


4.26


4.59


3.25


2.23
















Allowance for credit losses












Allowance for credit losses - loans


$ 140,730


$ 160,040


$ 185,827


$ 185,109


$ 168,475


Allowance for credit losses - loan commitments

5,766


6,731


9,514


10,829


10,685


Provision for credit losses


(21,025)


(27,958)


(209)


16,288


61,841


Net loan and deposit account overdraft charge-offs and recoveries

(689)


648


524


(133)


1,942
















Annualized net loan charge-offs and recoveries /average loans

(0.03)

%

0.02

%

0.02

%

(0.00)

%

0.07

%

Allowance for credit losses - loans / total portfolio loans

1.36

%

1.50

%

1.72

%

1.68

%

1.52

%

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

1.43

%

1.62

%

1.85

%

1.83

%

1.65

%

Allowance for credit losses - loans / non-performing loans

3.35

x

4.20

x

4.55

x

4.47

x

4.15

x

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












loans past due 


1.97

x

2.24

x

2.29

x

2.68

x

1.56

x

































Quarter Ended






June 30,


Mar. 31,


Dec. 31,


Sept. 30,


June 30,






2021


2021


2020


2020


2020


Capital ratios












Tier I leverage capital


10.42

%

10.74

%

10.51

%

10.18

%

9.09

%

Tier I risk-based capital


15.15


14.95


14.72


14.29


12.59


Total risk-based capital


17.68


17.58


17.58


17.18


15.33


Common equity tier 1 capital ratio (CET 1)

13.83


13.65


13.40


12.99


12.59


Average shareholders' equity to average assets

16.44


16.65


16.59


15.92


15.57


Tangible equity to tangible assets (4)


10.34


10.30


10.52


10.27


9.09


Tangible common equity to tangible assets (4)

9.43


9.39


9.58


9.33


9.09






























(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 $543.6 million of PPP loans as of June 30, 2021.

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

 

WESBANCO, INC.













Non-GAAP Financial Measures












Page 12

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



Three Months Ended


Year to Date 



June 30,


Mar. 31,


Dec. 31,


Sept. 30,


June 30,


June 30,

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

2021


2021


2020


2020


2020


2021

2020

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














Net income available to common shareholders

$         68,057


$        70,584


$        50,210


$        41,305


$          4,488


$       138,641

$        27,884


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

965


672


383


2,850


370


1,638

4,450


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

69,022


71,256


50,593


44,155


4,858


140,279

32,334
















Average total assets

$ 17,042,147


$ 16,636,258


$ 16,546,761


$ 16,719,717


$ 16,715,211


$ 16,840,324

$ 16,250,075















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

1.62%


1.74%


1.22%


1.05%


0.12%


1.68%

0.40%















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














Net income available to common shareholders

$         68,057


$        70,584


$        50,210


$        41,305


$          4,488


$       138,641

$        27,884


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

965


672


383


2,850


370


1,638

4,450


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

69,022


71,256


50,593


44,155


4,858


140,279

32,334
















Average total shareholders' equity

$   2,801,455


$   2,770,416


$   2,744,936


$   2,662,513


$   2,602,938


$   2,786,021

$   2,598,504















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

9.88%


10.43%


7.33%


6.60%


0.75%


10.15%

2.50%















Return on average tangible equity:














Net income available to common shareholders

$         68,057


$        70,584


$        50,210


$        41,305


$          4,488


$       138,641

$        27,884


Plus: amortization of intangibles (1)

2,270


2,288


2,628


2,643


2,658


4,558

5,324


Net income available to common shareholders before amortization of intangibles 

70,327


72,872


52,838


43,948


7,146


143,199

33,208
















Average total shareholders' equity

2,801,455


2,770,416


2,744,936


2,662,513


2,602,938


2,786,021

2,598,504


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

(1,145,882)


(1,148,171)


(1,150,184)


(1,150,549)


(1,152,856)


(1,147,020)

(1,132,591)


Average tangible equity

$   1,655,573


$   1,622,245


$   1,594,752


$   1,511,964


$   1,450,082


$   1,639,001

$   1,465,913















Return on average tangible equity (annualized)  (2)

17.04%


18.22%


13.18%


11.56%


1.98%


17.62%

4.56%
















Average tangible common equity

$   1,511,089


$   1,477,736


$   1,450,243


$   1,431,657


$   1,450,082


$   1,494,517

$   1,465,913

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

18.67%


20.00%


14.49%


12.21%


1.98%


19.32%

4.56%















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














Net income available to common shareholders

$         68,057


$        70,584


$        50,210


$        41,305


$          4,488


$       138,641

$        27,884


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

965


672


383


2,850


370


1,638

4,450


Plus: amortization of intangibles  (1)

2,270


2,288


2,628


2,643


2,658


4,558

5,324


Net income available to common shareholders before amortization of intangibles 














     and excluding after-tax restructuring and merger-related expenses

71,292


73,544


53,221


46,798


7,516


144,837

37,659
















Average total shareholders' equity

2,801,455


2,770,416


2,744,936


2,662,513


2,602,938


2,786,021

2,598,504


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

(1,145,882)


(1,148,171)


(1,150,184)


(1,150,549)


(1,152,856)


(1,147,020)

(1,132,591)


Average tangible equity

$   1,655,573


$   1,622,245


$   1,594,752


$   1,511,964


$   1,450,082


$   1,639,001

$   1,465,913















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

17.27%


18.39%


13.28%


12.31%


2.08%


17.82%

5.17%
















Average tangible common equity

$   1,511,089


$   1,477,736


$   1,450,243


$   1,431,657


$   1,450,082


$   1,494,517

$   1,465,913

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

18.92%


20.18%


14.60%


13.00%


2.08%


19.54%

5.17%















Efficiency ratio:














Non-interest expense

$         83,812


$        86,327


$        88,069


$        89,943


$        85,502


$       170,139

$      176,835


Less: restructuring and merger-related expense

(1,222)


(851)


(484)


(3,608)


(468)


(2,074)

(5,633)


Non-interest expense excluding restructuring and merger-related expense

82,590


85,476


87,585


86,335


85,034


168,065

171,202
















Net interest income on a fully taxable equivalent basis

116,906


117,517


120,790


121,705


120,156


234,423

241,502


Non-interest income

36,112


33,208


32,705


34,612


32,860


69,320

60,869


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

$       153,018


$      150,725


$      153,495


$      156,317


$      153,016


$       303,743

$      302,371


Efficiency ratio

53.97%


56.71%


57.06%


55.23%


55.57%


55.33%

56.62%





























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














Net income available to common shareholders

$         68,057


$        70,584


$        50,210


$        41,305


$          4,488


$       138,641

$        27,884


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

965


672


383


2,850


370


1,638

4,450

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

$         69,022


$        71,256


$        50,593


$        44,155


$          4,858


$       140,279

$        32,334





























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














Net income per common share - diluted

$              1.01


$            1.05


$            0.75


$            0.61


$            0.07


$              2.06

$            0.41


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

0.02


0.01


0.01


0.05


(0.00)


0.03

0.07

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

$              1.03


$            1.06


$            0.76


$            0.66


$            0.07


$              2.09

$            0.48































Period End






June 30,


Mar. 31,


Dec. 31, 


Sept. 30,


June 30,






2021


2021


2020


2020


2020




Tangible book value per share:














Total shareholders' equity

$   2,780,836


$   2,785,522


$   2,756,737


$   2,732,966


$   2,569,521





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

(1,144,604)


(1,146,874)


(1,149,161)


(1,150,939)


(1,151,523)





Less: preferred shareholder's equity

(144,484)


(144,484)


(144,484)


(144,529)


-





Tangible common equity

1,491,748


1,494,164


1,463,092


1,437,498


1,417,998



















Common shares outstanding

65,970,149


67,282,134


67,254,706


67,216,012


67,211,192


















Tangible book value per share

$           22.61


$          22.21


$          21.75


$          21.39


$          21.10


















Tangible common equity to tangible assets:














Total shareholders' equity

$   2,780,836


$   2,785,522


$   2,756,737


$   2,732,966


$   2,569,521





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

(1,144,604)


(1,146,874)


(1,149,161)


(1,150,939)


(1,151,523)





Tangible equity

1,636,232


1,638,648


1,607,576


1,582,027


1,417,998





Less: preferred shareholder's equity

(144,484)


(144,484)


(144,484)


(144,529)


-





Tangible common equity

1,491,748


1,494,164


1,463,092


1,437,498


1,417,998



















Total assets

16,966,867


17,057,788


16,425,610


16,552,140


16,755,395





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

(1,144,604)


(1,146,874)


(1,149,161)


(1,150,939)


(1,151,523)





Tangible assets

$ 15,822,263


$ 15,910,914


$ 15,276,449


$ 15,401,201


$ 15,603,872


















Tangible equity to tangible assets

10.34%


10.30%


10.52%


10.27%


9.09%


















Tangible common equity to tangible assets

9.43%


9.39%


9.58%


9.33%


9.09%
































(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 13

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

















Three Months Ended


Year to Date 



June 30,


Mar. 31,


Dec. 31,


Sept. 30,


June 30,


June 30,

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

2021


2021


2020


2020


2020


2021

2020

Pre-tax, pre-provision income:














Income before provision for income taxes

$         89,180


$        91,317


$        64,557


$        48,974


$          4,530


$       180,497

$        31,547


Add: provision for credit losses

(21,025)


(27,958)


(209)


16,288


61,841


(48,984)

91,661

Pre-tax, pre-provision income

$         68,155


$        63,359


$        64,348


$        65,262


$        66,371


$       131,513

$      123,208















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














Income before provision for income taxes

$         89,180


$        91,317


$        64,557


$        48,974


$          4,530


$       180,497

$        31,547


Add: provision for credit losses

(21,025)


(27,958)


(209)


16,288


61,841


(48,984)

91,661


Add: restructuring and merger-related expenses

1,222


851


484


3,608


468


2,074

5,633

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

$         69,377


$        64,210


$        64,832


$        68,870


$        66,839


$       133,587

$      128,841















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














Income before provision for income taxes

$         89,180


$        91,317


$        64,557


$        48,974


$          4,530


$       180,497

$        31,547


Add: provision for credit losses

(21,025)


(27,958)


(209)


16,288


61,841


(48,984)

91,661


Add: restructuring and merger-related expenses

1,222


851


484


3,608


468


2,074

5,633

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

69,377


64,210


64,832


68,870


66,839


133,587

128,841
















Average total assets

$ 17,042,147


$ 16,636,258


$ 16,546,761


$ 16,719,717


$ 16,715,211


$ 16,840,324

$ 16,250,075















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

1.63%


1.57%


1.56%


1.64%


1.61%


1.60%

1.59%















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














Income before provision for income taxes

$         89,180


$        91,317


$        64,557


$        48,974


$          4,530


$       180,497

$        31,547


Add: provision for credit losses

(21,025)


(27,958)


(209)


16,288


61,841


(48,984)

91,661


Add: restructuring and merger-related expenses

1,222


851


484


3,608


468


2,074

5,633

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

69,377


64,210


64,832


68,870


66,839


133,587

128,841
















Average total shareholders' equity

$   2,801,455


$   2,770,416


$   2,744,936


$   2,662,513


$   2,602,938


$   2,786,021

$   2,598,504















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

9.93%


9.40%


9.40%


10.29%


10.33%


9.67%

9.97%















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














Income before provision for income taxes

$         89,180


$        91,317


$        64,557


$        48,974


$          4,530


$       180,497

$        31,547


Add: provision for credit losses

(21,025)


(27,958)


(209)


16,288


61,841


(48,984)

91,661


Add: amortization of intangibles

2,873


2,896


3,327


3,346


3,365


5,769

6,739


Add: restructuring and merger-related expenses

1,222


851


484


3,608


468


2,074

5,633

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

72,250


67,106


68,159


72,216


70,204


139,356

135,580
















Average total shareholders' equity

2,801,455


2,770,416


2,744,936


2,662,513


2,602,938


2,786,021

2,598,504


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

(1,145,882)


(1,148,171)


(1,150,184)


(1,150,549)


(1,152,856)


(1,147,020)

(1,132,591)


Average tangible equity

$   1,655,573


$   1,622,245


$   1,594,752


$   1,511,964


$   1,450,082


$   1,639,001

$   1,465,913















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

17.50%


16.78%


17.00%


19.00%


19.47%


17.15%

18.60%
















Average tangible common equity

$   1,511,089


$   1,477,736


$   1,450,243


$   1,431,657


$   1,450,082


$   1,494,517

$   1,465,913

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

19.18%


18.42%


18.70%


20.07%


19.47%


18.80%

18.60%





























(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.

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/wesbanco-announces-second-quarter-2021-financial-results-301342503.html

SOURCE WesBanco, Inc.

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