(MENAFN- PR Newswire) WHEELING, W.Va., Oct. 21, 2020 /PRNewswire/ -- WesBanco, Inc. ("WesBanco") (Nasdaq: WSBC ), a diversified, multi-state bank holding company, today announced net income and related earnings per share for the three and nine months ended September 30, 2020. Reflecting the impact from the 2020 adoption of the new Current Expected Credit Losses ("CECL") accounting standard, net income for the three months ended September 30, 2020 was $41.3 million, with diluted earnings per share of $0.61, compared to $37.3 million and $0.68 per diluted share, respectively, for the third quarter of 2019. For the nine months ended September 30, 2020, net income was $69.2 million, or $1.03 per diluted share, compared to $122.5 million, or $2.24 per diluted share, for the 2019 period. Net income excluding after-tax restructuring and merger-related expenses for the three months ended September 30, 2020, was $44.2 million, or $0.66 per diluted share, as compared to $38.7 million and $0.71 per diluted share, respectively, in the prior year quarter (non-GAAP measures). On the same basis, net income for the nine months ended September 30, 2020 was $76.5 million, or $1.14 per diluted share, as compared to $2.31 per diluted share in the prior year period (non-GAAP measures).
| | | | For the Three Months Ended September 30, | | For the Nine Months Ended September 30, |
| | | | 2020 | | 2019 | | 2020 | | 2019 |
| (unaudited, dollars in thousands, except per share amounts) | | Net Income | | Diluted Earnings Per Share | | Net Income | | Diluted Earnings Per Share | | Net Income | | Diluted Earnings Per Share | | Net Income | | Diluted Earnings Per Share |
| Net income (Non-GAAP)(1) | | $ 44,155 | | $ 0.66 | | $ 38,681 | | $ 0.71 | | $ 76,489 | | $ 1.14 | | $ 126,349 | | $ 2.31 |
| Less: After tax restructuring and merger-related expenses(2) | | (2,850) | | (0.05) | | (1,334) | | (0.03) | | (7,300) | | (0.11) | | (3,852) | | (0.07) |
| Net income (GAAP) | | $ 41,305 | | $ 0.61 | | $ 37,347 | | $ 0.68 | | $ 69,189 | | $ 1.03 | | $ 122,497 | | $ 2.24 |
| (1)See non-GAAP financial measures for additional information relating to the calculation of these items. |
| (2)For the third quarter of 2020, after tax merger-related expenses totaled $0.5 million, and after tax restructuring expenses from financial center optimization totaled $2.3 million. |
On November 22, 2019, WesBanco consummated the merger with Old Line Bancshares, Inc. ("OLBK"), a bank holding company headquartered in Bowie, MD with approximately $3.0 billion in assets, excluding goodwill. Financial results for OLBK have been included in WesBanco's results from the merger consummation date.
WesBanco believes that pre-tax, pre-provision income (non-GAAP measure) provides a more comparable year-over-year measure as it removes the impact of the new CECL accounting standard implemented earlier this year. For the three months ended September 30, 2020, pre-tax, pre-provision income, excluding merger-related expenses, increased 33.8% year-over-year to $68.9 million compared to $51.5 million. On the same basis, pre-tax, pre-provision income, for the nine months ended September 30, 2020, increased 20.5% year-over-year to $197.7 million compared to $164.0 million. In addition, on the same basis, the return on average assets was 1.64% for the three month period and 1.61% for the nine month period. WesBanco believes that these non-GAAP financial measures are useful to investors as they enhance investors' understanding of the company's business and performance.
Financial and operational highlights during the quarter ended September 30, 2020:
- WesBanco is a well-capitalized financial institution with solid liquidity and a strong balance sheet
- Capital was enhanced with the issuance of $150 million of non-cumulative perpetual preferred stock
- Organic loan growth was 10.0% year-over-year, driven by WesBanco's support of small businesses impacted by the pandemic, as well as the commercial real estate loan category
- Commercial real estate loans increased organically 4.9% year-over-year due to new loan production, funding of construction loans originated during 2019, and lower payoffs compared to last year
- Funding of nearly 7,200 loans totaling approximately $853.1 million through the Small Business Administration's Payroll Protection Program ("SBA PPP"), as established by the CARES Act
- Pandemic-related loan deferrals have continued to decline and, as of October 16, represent 4.9% of total loans
- Organic deposit growth, excluding certificates of deposit, was 12.9% year-over-year, driven by growth in demand deposits
- Mortgage banking income increased 228.0% year-over-year to a record $8.5 million due to strong originations and organic growth in the current low interest rate environment
- Continued expense management demonstrated by a year-to-date efficiency ratio of 56.15% (non-GAAP measure)
- On August 27, 2020, WesBanco Bank announced the acceleration of its financial center optimization strategy that will consolidate 25 locations by early 2021, with expected gross cost savings of approximately $6.0 to $6.5 million
- 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, for the four quarters prior to the current earnings period
"We are pleased with WesBanco's performance during the third quarter as we exhibited strong fee income growth and disciplined expense management to deliver growth of 33.8% year-over-year and 3.0% quarter-over-quarter in our pre-tax, pre-provision income," said Todd F. Clossin, President and Chief Executive Officer of WesBanco. "WesBanco is a well-capitalized institution with peer-leading reserve levels combined with diversified growth engines and diligent expense management. We remain focused on the long-term success of our company for our shareholders, customers, and communities."
Mr. Clossin added, "I continue to be extremely proud of our employees as they have gone above and beyond to serve our customers and communities during the last six months. In addition to our company donating more than a half million dollars for pandemic-related efforts, our employees continue to provide their time and efforts supporting local charitable organizations. They have assisted more than 7,200 businesses secure Payroll Protection Program loans from the Small Business Administration. Furthermore, they helped nearly 2,300 small business and commercial, 550 residential mortgage, 490 consumer loan, and 230 home equity loan customers during the early stages of the pandemic with primarily 90-day loan deferrals. Our customers have been very grateful for our efforts that allowed them to worry about one less thing during this unprecedented time. These actions speak loudly to our community bank roots."
Financial Center Optimization Strategy WesBanco annually reviews the needs of the communities it serves, as well as the performance of its financial centers, to identify necessary improvement plans. Based in part on customer migration to digital channels, community transition, and capital deployment, it has closed 15 locations during the last three years. Reflecting the current operating environment and increased utilization of digital services, WesBanco announced, on August 27, 2020, a plan to accelerate its financial center optimization strategy. Through this plan, WesBanco will consolidate a total of 25 existing locations and convert two others to drive-up only locations across Indiana, Kentucky, Ohio, Pennsylvania, and West Virginia. One location closed during the last week of September, two others are slated for closure during the fourth quarter of 2020, and the remainder will close on or about January 22, 2021. Cost savings of approximately $6.0 to $6.5 million are expected to be phased-in during the first half of 2021. During the next few quarters, including the third quarter of 2020, WesBanco anticipates incurring total charges of approximately $3.5 to $4.0 million due to the disposition of assets, lease terminations, severance, and other costs associated with the closures, of which $3.0 million was incurred during the third quarter of 2020. Importantly, staff at the locations being consolidated will be given the opportunity to fill certain open positions at other nearby financial centers.
Balance Sheet Portfolio loans of $11.0 billion as of September 30, 2020 increased 41.7% when compared to the prior year period due to the OLBK acquisition and participation in the SBA PPP. Total organic loan growth was 10.0% year-over-year, driven by the SBA PPP and commercial real estate loans. Total deposits increased 40.8% year-over-year to $12.2 billion due primarily to the OLBK acquisition, CARES Act stimulus, and increased personal savings. Total deposits, excluding the OLBK acquisition, increased $1.1 billion, or 12.9%, year-over-year due to CARES Act stimulus and increased personal savings, which more than offset a $0.4 million reduction in certificates of deposit.
Credit Quality As of September 30, 2020, both non-performing loans and non-performing assets as percentages of the portfolio and total assets have remained relatively low and consistent throughout the last five quarters. The granting of loan deferrals has resulted in continued relatively benign asset quality metrics, as nonperforming and delinquency amounts do not reflect loans that have been modified as a result of the COVID-19 pandemic. Total loans past due as a percentage of total portfolio loans of 25 basis points decreased 5 basis points year-over-year and 26 basis points sequentially. In addition, annualized net loan charge-offs to average loans remained low for the quarter and year-to-date periods at zero and 8 basis points, respectively.
The provision for credit losses of $16.3 million decreased significantly from the second quarter due to improved macroeconomic factors. The allowance for credit losses specific to total portfolio loans at September 30, 2020 was $185.1 million, or 1.68% of total loans; or, when excluding SBA PPP loans, 1.83% of total portfolio loans. Excluded from the allowance for credit losses and related coverage ratio are fair market value adjustments on previously acquired loans representing 0.43% of total loans.
Criticized and classified loan balances increased to 3.25% of total portfolio loans due primarily to the downgrade of $72 million of hotel loans resulting from low occupancy due to the current pandemic-driven environment. These downgraded loans satisfy the CARES Act loan deferral guidelines, and have an average LTV of 60% as well as strong guarantor support. Furthermore, the criticized and classified ratio continued to be favorable to peer bank averages.
Net Interest Margin and Income The net interest margin of 3.31% for the third quarter of 2020 decreased 25 basis points year-over-year, primarily due to the lower interest rate environment from the five decreases in the Federal Reserve Board's target federal funds rate, totaling 225 basis points, from July 2019 through March 2020, as well as a flattening of the yield curve. Reflecting the significantly lower interest rate environment, we aggressively reduced our deposit rates beginning in late March, which helped to lower deposit funding costs 45 basis points year-over-year to 26 basis points for the third quarter of 2020. In addition, we shortened the maturities and experienced lower rates in our third quarter FHLB borrowings as compared to the prior year, which helped to lower the cost of borrowings 35 basis points year-over-year. Accretion from acquisitions benefited the third quarter net interest margin by 18 basis points, as compared to 13 basis points in the prior year period and 19 basis points during the second quarter of 2020. Lastly, while the SBA PPP loans will positively impact the net interest margin as the loans are forgiven during the next several quarters, the funding of these loans benefited the third quarter of 2020 net interest margin by a net two basis points.
Net interest income increased $24.5 million, or 25.5%, during the third quarter of 2020, as compared to the same quarter of 2019, due to a 34.8% increase in average total earning assets, primarily driven by the OLBK acquisition and related accretion from purchase accounting, partially offset by the lower loan yields, reflecting repricing of existing loans and lower new offered rates in the current market environment. For the nine months ended September 30, 2020, net interest income increased $66.8 million, or 22.8%, due to higher average total earning assets, despite an overall lower net interest margin, as discussed for the three-month period comparison.
Non-Interest Income For the third quarter of 2020, non-interest income of $34.6 million increased $7.7 million, or 28.4%, from the third quarter of 2019, driven primarily by mortgage banking income and higher commercial customer loan swap-related income, which were partially offset by lower service charges on deposits. Reflecting the low interest rate environment and organic growth, mortgage banking fees increased $5.9 million, or 228.0%, compared to the prior year period, as residential mortgage origination dollar volume doubled, with approximately 75% of those originations sold into the secondary market. Loan swap-related income for the quarter was $1.3 million reflecting commercial loan customer demand in the current rate environment. This quarter represented the one-year anniversary of the limitation on interchange fees due to the Durbin amendment in the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank Act"). Service charges on deposits were lower due to higher consumer deposits associated with CARES Act stimulus and lower general consumer spending, resulting in fewer eligible account fees. Primarily reflecting the items discussed above, non-interest income, for the nine months ended September 30, 2020, increased $9.6 million, or 11.2%.
Non-Interest Expense Excluding restructuring and merger-related expenses, non-interest expense for the three months ended September 30, 2020 increased $14.8 million, or 20.6%, to $86.3 million compared to the prior year period, primarily reflecting additional staffing and financial center locations from the OLBK acquisition. Total operating expenses continued to be well-controlled through company-wide efforts to effectively manage discretionary costs, open positions, and marketing expenses. These efforts are demonstrated by efficiency ratios of 55.23% and 56.15% for the three-month and nine-month periods ending September 30, 2020, respectively. FDIC insurance expense increased $3.2 million, or 259.5%, due to a higher assessment rate associated with our larger asset level, as well as the recording of a $2.4 million assessment credit in the prior year period. On a similar basis, non-interest expense during the first nine months of 2020 increased $42.8 million, or 19.9%, compared to the prior year period, primarily reflecting the OLBK acquisition and the mid-year 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 September 30, 2020, Tier I leverage was 10.18%, Tier I risk-based capital ratio was 14.29%, common equity Tier 1 capital ratio ("CET 1") was 12.99%, and total risk-based capital was 17.18%.
As compared to the prior year period, Tier 1 leverage and Tier 1 risk-based capital ratios were adversely impacted by the movement of $136.5 million of trust preferred securities, during the fourth quarter of 2019, from Tier 1 to Tier 2 risk-based capital, as required by the Dodd-Frank Act for financial institutions with total assets greater than $15 billion. As an offset to this requirement, WesBanco, on August 4, 2020, raised $150 million of preferred stock, considered Tier 1 capital, through the issuance of 6,000,000 depositary shares, which are listed on the Nasdaq Global Select Market under the symbol "WSBCP". The net proceeds from this issuance are expected to be used for general corporate purposes, which may include repayment, redemption or refinancing of indebtedness, capital expenditures, making contributions to the capital of WesBanco Bank to support its lending, investing and other financial services activities, funding of possible acquisitions, working capital, satisfaction of other obligations of WesBanco and its subsidiaries, and repurchase of WesBanco's outstanding equity securities.
Conference Call and Webcast WesBanco will host a conference call to discuss the Company's financial results for the third quarter of 2020 at 3:00 p.m. ET on Thursday, October 22, 2020. Interested parties can access the live webcast of the conference call through the Investor Relations section of the Company's website, [To enable links contact MENAFN] . 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 10136715. The replay will begin at approximately 5:00 p.m. ET on October 22, and end at 12 a.m. ET on November 5. An archive of the webcast will be available for one year on the Investor Relations section of the Company's website ( [To enable links contact MENAFN] ).
Forward-Looking Statements Forward-looking statements in this report relating to WesBanco's plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The information contained in this report should be read in conjunction with WesBanco's Form 10-K for the year ended December 31, 2019 and documents subsequently filed by WesBanco with the Securities and Exchange Commission ("SEC"), including WesBanco's Form 10-Q for the quarters ended March 31 and June 30, 2020, which are available at the SEC's website, [To enable links contact MENAFN] or at WesBanco's website, [To enable links contact MENAFN] . Investors are cautioned that forward-looking statements, which are not historical fact, involve risks and uncertainties, including those detailed in WesBanco's most recent Annual Report on Form 10-K filed with the SEC under "Risk Factors" in Part I, Item 1A and under "Risk Factors" in Part II, Item 1A of WesBanco's March 31, 2020 Quarterly Report on Form 10-Q. Such statements are subject to important factors that could cause actual results to differ materially from those contemplated by such statements, including, without limitation, the effects of changing regional and national economic conditions including the effects of the COVID-19 pandemic; changes in interest rates, spreads on earning assets and interest-bearing liabilities, and associated interest rate sensitivity; sources of liquidity available to WesBanco and its related subsidiary operations; potential future credit losses and the credit risk of commercial, real estate, and consumer loan customers and their borrowing activities; actions of the Federal Reserve Board, the Federal Deposit Insurance Corporation, the SEC, the Financial Institution Regulatory Authority, the Municipal Securities Rulemaking Board, the Securities Investors Protection Corporation, and other regulatory bodies; potential legislative and federal and state regulatory actions and reform, including, without limitation, the impact of the implementation of the Dodd-Frank Act; adverse decisions of federal and state courts; fraud, scams and schemes of third parties; cyber-security breaches; competitive conditions in the financial services industry; rapidly changing technology affecting financial services; marketability of debt instruments and corresponding impact on fair value adjustments; and/or other external developments materially impacting WesBanco's operational and financial performance. WesBanco does not assume any duty to update forward-looking statements.
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. ( [To enable links contact MENAFN] ) is a diversified and balanced financial services company that delivers large bank capabilities with a community bank feel. Our distinct long-term growth strategies are built upon unique sustainable advantages permitting us to span six states with meaningful market share. Built upon our 'Better Banking Pledge', our customer-centric service culture is focused on growing long-term relationships by pledging to serve all personal and business customer needs efficiently and effectively. In addition to a full range of online and mobile banking options and a full-suite of commercial products and services, WesBanco provides trust, wealth management, securities brokerage, and private banking services through our century-old Trust and Investment Services department, with approximately $4.6 billion of assets under management (as of September 30, 2020). WesBanco's banking subsidiary, WesBanco Bank, Inc., operates 235 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.
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| | WESBANCO, INC. | | | | | | | | | | | | |
| | Consolidated Selected Financial Highlights | | | | | | | | | | | Page 5 | |
| | (unaudited, dollars in thousands, except shares and per share amounts) | | | | | | | | | | | |
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| | | | | | For the Three Months Ended | | For the Nine Months Ended | |
| | STATEMENT OF INCOME | September 30, | | September 30, | |
| | Interest and dividend income | 2020 | | 2019 | | % Change | | 2020 | | 2019 | | % Change | |
| | | Loans, including fees | $ 116,524 | | $ 95,369 | | 22.2 | | $ 351,095 | | $ 287,287 | | 22.2 | |
| | | Interest and dividends on securities: | | | | | | | | | | | | |
| | | | Taxable | 11,669 | | 15,887 | | (26.6) | | 42,702 | | 49,061 | | (13.0) | |
| | | | Tax-exempt | 4,182 | | 4,759 | | (12.1) | | 12,940 | | 15,443 | | (16.2) | |
| | | | | Total interest and dividends on securities | 15,851 | | 20,646 | | (23.2) | | 55,642 | | 64,504 | | (13.7) | |
| | | Other interest income | 1,282 | | 1,333 | | (3.8) | | 4,062 | | 4,153 | | (2.2) | |
| | Total interest and dividend income | 133,657 | | 117,348 | | 13.9 | | 410,799 | | 355,944 | | 15.4 | |
| | Interest expense | | | | | | | | | | | | |
| | | Interest bearing demand deposits | 1,225 | | 4,489 | | (72.7) | | 5,970 | | 12,749 | | (53.2) | |
| | | Money market deposits | 707 | | 1,973 | | (64.2) | | 3,937 | | 5,881 | | (33.1) | |
| | | Savings deposits | 303 | | 861 | | (64.8) | | 1,523 | | 2,061 | | (26.1) | |
| | | Certificates of deposit | 3,197 | | 3,830 | | (16.5) | | 10,765 | | 11,831 | | (9.0) | |
| | | | | Total interest expense on deposits | 5,432 | | 11,153 | | (51.3) | | 22,195 | | 32,522 | | (31.8) | |
| | | Federal Home Loan Bank borrowings | 5,457 | | 6,645 | | (17.9) | | 20,982 | | 19,269 | | 8.9 | |
| | | Other short-term borrowings | 304 | | 1,353 | | (77.5) | | 1,454 | | 4,392 | | (66.9) | |
| | | Subordinated debt and junior subordinated debt | 1,871 | | 2,077 | | (9.9) | | 6,400 | | 6,820 | | (6.2) | |
| | | | | Total interest expense | 13,064 | | 21,228 | | (38.5) | | 51,031 | | 63,003 | | (19.0) | |
| | Net interest income | 120,593 | | 96,120 | | 25.5 | | 359,768 | | 292,941 | | 22.8 | |
| | | Provision for credit losses | 16,288 | | 4,121 | | NM | | 107,949 | | 9,375 | | NM | |
| | Net interest income after provision for credit losses | 104,305 | | 91,999 | | 13.4 | | 251,819 | | 283,566 | | (11.2) | |
| | Non-interest income | | | | | | | | | | | | |
| | | Trust fees | 6,426 | | 6,425 | | 0.0 | | 19,580 | | 19,880 | | (1.5) | |
| | | Service charges on deposits | 5,332 | | 7,056 | | (24.4) | | 16,272 | | 19,803 | | (17.8) | |
| | | Electronic banking fees | 4,780 | | 5,253 | | (9.0) | | 13,100 | | 18,299 | | (28.4) | |
| | | Net securities brokerage revenue | 1,725 | | 1,765 | | (2.3) | | 4,787 | | 5,597 | | (14.5) | |
| | | Bank-owned life insurance | 2,088 | | 1,373 | | 52.1 | | 5,609 | | 4,032 | | 39.1 | |
| | | Mortgage banking income | 8,488 | | 2,588 | | 228.0 | | 17,295 | | 5,262 | | 228.7 | |
| | | Net securities gains | 787 | | 235 | | 234.9 | | 3,577 | | 3,800 | | (5.9) | |
| | | Net (loss)/gain on other real estate owned and other assets | (19) | | 158 | | (112.0) | | 84 | | 670 | | (87.5) | |
| | | Other income | 5,005 | | 2,097 | | 138.7 | | 15,177 | | 8,535 | | 77.8 | |
| | | | | Total non-interest income | 34,612 | | 26,950 | | 28.4 | | 95,481 | | 85,878 | | 11.2 | |
| | Non-interest expense | | | | | | | | | | | | |
| | | Salaries and wages | 38,342 | | 32,915 | | 16.5 | | 114,025 | | 95,501 | | 19.4 | |
| | | Employee benefits | 10,604 | | 9,726 | | 9.0 | | 31,115 | | 29,419 | | 5.8 | |
| | | Net occupancy | 7,092 | | 5,392 | | 31.5 | | 20,809 | | 16,343 | | 27.3 | |
| | | Equipment | 6,229 | | 5,273 | | 18.1 | | 17,991 | | 14,924 | | 20.6 | |
| | | Marketing | 1,577 | | 1,505 | | 4.8 | | 4,282 | | 4,002 | | 7.0 | |
| | | FDIC insurance | 1,948 | | (1,221) | | 259.5 | | 6,456 | | 1,287 | | 401.6 | |
| | | Amortization of intangible assets | 3,346 | | 2,446 | | 36.8 | | 10,085 | | 7,424 | | 35.8 | |
| | | Restructuring and merger-related expense | 3,608 | | 1,688 | | 113.7 | | 9,241 | | 4,876 | | 89.5 | |
| | | Other operating expenses | 17,197 | | 15,544 | | 10.6 | | 52,775 | | 45,876 | | 15.0 | |
| | | | | Total non-interest expense | 89,943 | | 73,268 | | 22.8 | | 266,779 | | 219,652 | | 21.5 | |
| | Income before provision for income taxes | 48,974 | | 45,681 | | 7.2 | | 80,521 | | 149,792 | | (46.2) | |
| | | Provision for income taxes | 7,669 | | 8,334 | | (8.0) | | 11,332 | | 27,295 | | (58.5) | |
| | Net Income | | 41,305 | | 37,347 | | 10.6 | | 69,189 | | 122,497 | | (43.5) | |
| | Preferred stock dividends | - | | - | | - | | - | | - | | - | |
| | Net income available to common shareholders | $ 41,305 | | $ 37,347 | | 10.6 | | $ 69,189 | | $ 122,497 | | (43.5) | |
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| | Taxable equivalent net interest income | $ 121,705 | | $ 97,385 | | 25.0 | | $ 363,208 | | $ 297,046 | | 22.3 | |
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| | Per common share data | | | | | | | | | | | | |
| | Net income per common share - basic | $ 0.61 | | $ 0.68 | | (10.3) | | $ 1.03 | | $ 2.24 | | (54.0) | |
| | Net income per common share - diluted | 0.61 | | 0.68 | | (10.3) | | 1.03 | | 2.24 | | (54.0) | |
| | Net income per common share - diluted, excluding certain items (1)(2) | 0.66 | | 0.71 | | (7.0) | | 1.14 | | 2.31 | | (50.6) | |
| | Dividends declared | 0.32 | | 0.31 | | 3.2 | | 0.96 | | 0.93 | | 3.2 | |
| | Book value (period end) | 40.66 | | 38.42 | | 5.8 | | 40.66 | | 38.42 | | 5.8 | |
| | Tangible common book value (period end) (1) | 21.39 | | 21.89 | | (2.3) | | 21.39 | | 21.89 | | (2.3) | |
| | Average common shares outstanding - basic | 67,214,759 | | 54,695,578 | | 22.9 | | 67,268,449 | | 54,641,057 | | 23.1 | |
| | Average common shares outstanding - diluted | 67,269,303 | | 54,751,344 | | 22.9 | | 67,351,857 | | 54,705,761 | | 23.1 | |
| | Period end common shares outstanding | 67,216,012 | | 54,691,225 | | 22.9 | | 67,216,012 | | 54,691,225 | | 22.9 | |
| | Period end preferred shares outstanding | 150,000 | | - | | 100.0 | | 150,000 | | - | | 100.0 | |
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| | (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. | | | | | | | | |
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| | NM - Not Meaningful | | | | | | | | | | | | |
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| | WESBANCO, INC. | | | | | | | | | | | | | | | | | | |
| | Consolidated Selected Financial Highlights | | | | | | | | | | | | | | | Page 6 | |
| | (unaudited, dollars in thousands) | | | | | | | | | | | | | | | | |
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| | Selected ratios | | | | | | | | | | | | | | | | | | |
| | | | | | | | For the Nine Months Ended | | | |
| | | | | | | | September 30, | | | | |
| | | | | | | | 2020 | | 2019 | | % Change | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | Return on average assets | | | | | 0.56 | % | 1.31 | % | (57.25) | % | | | | | | | |
| | Return on average assets, excluding | | | | | | | | | | | | | | | | |
| | after-tax restructuring and merger-related expenses (1) | | 0.62 | | 1.35 | | (54.07) | | | | | | | | |
| | Return on average equity | | | | | 3.53 | | 7.99 | | (55.82) | | | | | | | | |
| | Return on average equity, excluding | | | | | | | | | | | | | | | | |
| | after-tax restructuring and merger-related expenses (1) | | 3.90 | | 8.24 | | (52.67) | | | | | | | | |
| | Return on average tangible equity (1) | | | | 6.96 | | 14.97 | | (53.51) | | | | | | | | |
| | Return on average tangible equity, excluding | | | | | | | | | | | | | | | | |
| | after-tax restructuring and merger-related expenses (1) | | 7.62 | | 15.42 | | (50.58) | | | | | | | | |
| | Return on average tangible common equity (1) | | | | 7.09 | | 14.97 | | (52.64) | | | | | | | | |
| | Return on average tangible common equity, excluding | | | | | | | | | | | | | | | |
| | after-tax restructuring and merger-related expenses (1) | | 7.76 | | 15.42 | | (49.68) | | | | | | | | |
| | Yield on earning assets (2) | | | | | 3.86 | | 4.41 | | (12.47) | | | | | | | | |
| | Cost of interest bearing liabilities | | | | | 0.69 | | 1.07 | | (35.51) | | | | | | | | |
| | Net interest spread (2) | | | | | | 3.17 | | 3.34 | | (5.09) | | | | | | | | |
| | Net interest margin (2) | | | | | | 3.38 | | 3.64 | | (7.14) | | | | | | | | |
| | Efficiency (1) (2) | | | | | | 56.15 | | 56.09 | | 0.11 | | | | | | | | |
| | Average loans to average deposits | | | | 92.37 | | 87.77 | | 5.24 | | | | | | | | |
| | Annualized net loan charge-offs/average loans | | | | 0.08 | | 0.05 | | 60.00 | | | | | | | | |
| | Effective income tax rate | | | | | 14.07 | | 18.22 | | (22.78) | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | For the Quarter Ended | | | | |
| | | | | | | | Sept. 30, | | June 30, | | Mar. 31, | | Dec. 31, | | Sept. 30, | | | | |
| | | | | | | | 2020 | | 2020 | | 2020 | | 2019 | | 2019 | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | Return on average assets | | | | | 0.98 | % | 0.11 | % | 0.60 | % | 1.04 | % | 1.19 | % | | | |
| | Return on average assets, excluding | | | | | | | | | | | | | | | | |
| | after-tax restructuring and merger-related expenses (1) | | 1.05 | | 0.12 | | 0.70 | | 1.30 | | 1.23 | | | | |
| | Return on average equity | | | | | 6.17 | | 0.69 | | 3.63 | | 6.20 | | 7.06 | | | | |
| | Return on average equity, excluding | | | | | | | | | | | | | | | | |
| | after-tax restructuring and merger-related expenses (1) | | 6.60 | | 0.75 | | 4.26 | | 7.75 | | 7.32 | | | | |
| | Return on average tangible equity (1) | | | | 11.56 | | 1.98 | | 7.07 | | 11.53 | | 13.06 | | | | |
| | Return on average tangible equity, excluding | | | | | | | | | | | | | | | | |
| | after-tax restructuring and merger-related expenses (1) | | 12.31 | | 2.08 | | 8.18 | | 14.24 | | 13.50 | | | | |
| | Return on average tangible common equity (1) | | | | 12.21 | | 1.98 | | 7.07 | | 11.53 | | 13.06 | | | | |
| | Return on average tangible common equity, excluding | | | | | . | | | | | | | | | | |
| | after-tax restructuring and merger-related expenses (1) | | 13.00 | | 2.08 | | 8.18 | | 14.24 | | 13.50 | | | | |
| | Yield on earning assets (2) | | | | | 3.66 | | 3.75 | | 4.19 | | 4.25 | | 4.34 | | | | |
| | Cost of interest bearing liabilities | | | | | 0.53 | | 0.63 | | 0.91 | | 0.99 | | 1.09 | | | | |
| | Net interest spread (2) | | | | | | 3.13 | | 3.12 | | 3.28 | | 3.26 | | 3.25 | | | | |
| | Net interest margin (2) | | | | | | 3.31 | | 3.32 | | 3.54 | | 3.55 | | 3.56 | | | | |
| | Efficiency (1) (2) | | | | | | 55.23 | | 55.57 | | 57.69 | | 58.29 | | 57.57 | | | | |
| | Average loans to average deposits | | | | 90.88 | | 91.87 | | 94.61 | | 90.78 | | 88.96 | | | | |
| | Annualized net loan charge-offs and recoveries /average loans | (0.00) | | 0.07 | | 0.18 | | 0.20 | | 0.04 | | | | |
| | Effective income tax rate | | | | | 15.66 | | 0.93 | | 13.40 | | 16.23 | | 18.24 | | | | |
| | Trust assets, market value at period end | | | | $ 4,649,054 | | $ 4,487,042 | | $ 4,082,141 | | $ 4,719,966 | | $ 4,443,430 | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | (1) See non-GAAP financial measures for additional information relating to the calculation of this item. | | | | | | | | | | |
| | (2) The yield on earning assets, net interest margin, net interest spread and efficiency ratios are presented on a fully | | | | | | | | |
| | taxable-equivalent (FTE) and annualized basis. The FTE basis adjusts for the tax benefit of income on certain tax-exempt | | | | | | | | |
| | loans and investments. WesBanco believes this measure to be the preferred industry measurement of net interest income and | | | | | | | | |
| | provides a relevant comparison between taxable and non-taxable amounts. | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | |
| | WESBANCO, INC. | | | | | | | | | |
| | Consolidated Selected Financial Highlights | | | | | | | | Page 7 | |
| | (unaudited, dollars in thousands, except shares) | | | | | | | | % Change | |
| | Balance sheets | | September 30, | | | December 31, | December 31, 2019 | |
| | Assets | | 2020 | | 2019 | | % Change | 2019 | to September 30, 2020 | |
| | Cash and due from banks | | $ 215,982 | | $ 209,606 | | 3.0 | $ 182,905 | 18.1 | |
| | Due from banks - interest bearing | | 544,284 | | 34,727 | | NM | 51,891 | NM | |
| | Securities: | | | | | | | | | |
| | | Equity securities, at fair value | | 12,516 | | 11,644 | | 7.5 | 12,343 | 1.4 | |
| | | Available-for-sale debt securities, at fair value | | 2,045,924 | | 2,209,199 | | (7.4) | 2,393,558 | (14.5) | |
| | | Held-to-maturity debt securities (fair values of $782,401; $877,809 | | | | | | | | | |
| | | and $874,523, respectively) | | 746,767 | | 852,824 | | (12.4) | 851,753 | (12.3) | |
| | | | Allowance for credit losses, held-to-maturity debt securities | | (461) | | - | | (100.0) | - | (100.0) | |
| | | Net held-to-maturity debt securities | | 746,306 | | 852,824 | | (12.5) | 851,753 | (12.4) | |
| | | | Total securities | | 2,804,746 | | 3,073,667 | | (8.7) | 3,257,654 | (13.9) | |
| | Loans held for sale | | 134,151 | | 20,715 | | 547.6 | 43,013 | 211.9 | |
| | Portfolio loans: | | | | | | | | | |
| | | Commercial real estate | | 5,708,648 | | 3,854,653 | | 48.1 | 5,725,008 | (0.3) | |
| | | Commercial and industrial | | 2,507,235 | | 1,332,275 | | 88.2 | 1,644,699 | 52.4 | |
| | | Residential real estate | | 1,798,019 | | 1,638,574 | | 9.7 | 1,873,647 | (4.0) | |
| | | Home equity | | 647,052 | | 587,745 | | 10.1 | 649,678 | (0.4) | |
| | | Consumer | | 328,592 | | 343,505 | | (4.3) | 374,953 | (12.4) | |
| | Total portfolio loans, net of unearned income | | 10,989,546 | | 7,756,752 | | 41.7 | 10,267,985 | 7.0 | |
| | Allowance for credit losses - loans (1) | | (185,109) | | (54,317) | | (240.8) | (52,429) | (253.1) | |
| | | | Net portfolio loans | | 10,804,437 | | 7,702,435 | | 40.3 | 10,215,556 | 5.8 | |
| | Premises and equipment, net | | 248,491 | | 178,344 | | 39.3 | 261,014 | (4.8) | |
| | Accrued interest receivable | | 65,023 | | 37,156 | | 75.0 | 43,648 | 49.0 | |
| | Goodwill and other intangible assets, net | | 1,165,566 | | 914,705 | | 27.4 | 1,149,153 | 1.4 | |
| | Bank-owned life insurance | | 304,288 | | 229,349 | | 32.7 | 299,516 | 1.6 | |
| | Other assets | | 265,172 | | 193,183 | | 37.3 | 215,762 | 22.9 | |
| | Total Assets | | $ 16,552,140 | | $ 12,593,887 | | 31.4 | $ 15,720,112 | 5.3 | |
| | | | | | | | | | | |
| | Liabilities | | | | | | | | | |
| | Deposits: | | | | | | | | | |
| | | Non-interest bearing demand | | $ 4,073,305 | | $ 2,476,392 | | 64.5 | $ 3,178,270 | 28.2 | |
| | | Interest bearing demand | | 2,633,601 | | 2,128,581 | | 23.7 | 2,316,855 | 13.7 | |
| | | Money market | | 1,619,410 | | 1,085,732 | | 49.2 | 1,518,314 | 6.7 | |
| | | Savings deposits | | 2,167,597 | | 1,698,125 | | 27.6 | 1,934,647 | 12.0 | |
| | | Certificates of deposit | | 1,707,512 | | 1,275,533 | | 33.9 | 2,055,920 | (16.9) | |
| | | | Total deposits | | 12,201,425 | | 8,664,363 | | 40.8 | 11,004,006 | 10.9 | |
| | Federal Home Loan Bank borrowings | | 794,621 | | 1,161,092 | | (31.6) | 1,415,615 | (43.9) | |
| | Other short-term borrowings | | 381,909 | | 325,247 | | 17.4 | 282,362 | 35.3 | |
| | Subordinated debt and junior subordinated debt | | 192,150 | | 156,632 | | 22.7 | 199,869 | (3.9) | |
| | | | Total borrowings | | 1,368,680 | | 1,642,971 | | (16.7) | 1,897,846 | (27.9) | |
| | Accrued interest payable | | 5,014 | | 5,273 | | (4.9) | 8,077 | (37.9) | |
| | Other liabilities | | 244,055 | | 180,011 | | 35.6 | 216,262 | 12.9 | |
| | Total Liabilities | | 13,819,174 | | 10,492,618 | | 31.7 | 13,126,191 | 5.3 | |
| | | | | | | | | | | |
| | Shareholders' Equity | | | | | | | | | |
| | Preferred stock, no par value; 1,000,000 shares authorized in 2020 and 2019, respectively; | | | | | | | | | |
| | | 150,000 shares 6.75% non-cumulative perpetual preferred stock, Series A, | | | | | | | | | |
| | | liquidation preference $150.0 million, issued and outstanding at September 30, 2020 | | | | | | | | | |
| | | and 0 shares issued and outstanding at December 31, 2019, respectively. | | 144,529 | | - | | 100.0 | - | 100.0 | |
| | Common stock, $2.0833 par value; 100,000,000 shares authorized in | | | | | | | | | |
| | | 2020 and 2019, respectively; 68,081,306, 54,698,250 and 68,078,116 shares | | | | | | | | | |
| | | issued, respectively; 67,216,012, 54,691,225 and 67,824,428 shares | | 141,834 | | 113,954 | | 24.5 | 141,827 | 0.0 | |
| | | outstanding, respectively | | | | | | | | | |
| | Capital surplus | | 1,634,172 | | 1,169,595 | | 39.7 | 1,636,966 | (0.2) | |
| | Retained earnings | | 802,892 | | 809,332 | | (0.8) | 824,694 | (2.6) | |
| | Treasury stock ( 865,294, 7,025 and 253,688 shares - at cost, respectively) | | (27,403) | | (252) | | NM | (9,463) | (189.6) | |
| | Accumulated other comprehensive income (loss) | | 38,301 | | 9,922 | | 286.0 | 1,201 | NM | |
| | Deferred benefits for directors | | (1,359) | | (1,282) | | (6.0) | (1,304) | (4.2) | |
| | Total Shareholders' Equity | | 2,732,966 | | 2,101,269 | | 30.1 | 2,593,921 | 5.4 | |
| | Total Liabilities and Shareholders' Equity | | $ 16,552,140 | | $ 12,593,887 | | 31.4 | $ 15,720,112 | 5.3 | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | (1) Allowance for credit losses - loans as of September 30, 2020 includes a day 1 adjustment of $41.4 million due to the adoption of ASU 2016-13. | | | | | |
| | | | | | | | | | | |
| | NM - Not Meaningful | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | |
| | WESBANCO, INC. | | | | | | |
| | Consolidated Selected Financial Highlights | | | | | Page 8 | |
| | (unaudited, dollars in thousands, except shares) | | | | | | |
| | Balance sheets | | September 30, | | June 30, | | |
| | Assets | | 2020 | | 2020 | % Change | |
| | Cash and due from banks | | $ 215,982 | | $ 219,022 | (1.4) | |
| | Due from banks - interest bearing | | 544,284 | | 671,312 | (18.9) | |
| | Securities: | | | | | | |
| | | Equity securities, at fair value | | 12,516 | | 12,277 | 1.9 | |
| | | Available-for-sale, at fair value | | 2,045,924 | | 2,073,949 | (1.4) | |
| | | Held-to-maturity (fair values of $782,401 and 802,666, respectively) | | 746,767 | | 766,416 | (2.6) | |
| | | | Allowance for credit losses, held-to-maturity debt securities | | (461) | | (817) | 43.6 | |
| | | Net held-to-maturity debt securities | | 746,306 | | 765,599 | (2.5) | |
| | | | Total securities | | 2,804,746 | | 2,851,825 | (1.7) | |
| | Loans held for sale | | 134,151 | | 53,324 | 151.6 | |
| | Portfolio Loans: | | | | | | |
| | | Commercial real estate | | 5,708,648 | | 5,694,457 | 0.2 | |
| | | Commercial and industrial | | 2,507,235 | | 2,496,096 | 0.4 | |
| | | Residential real estate | | 1,798,019 | | 1,893,544 | (5.0) | |
| | | Home equity | | 647,052 | | 646,323 | 0.1 | |
| | | Consumer | | 328,592 | | 343,723 | (4.4) | |
| | Total portfolio loans, net of unearned income | | 10,989,546 | | 11,074,143 | (0.8) | |
| | Allowance for credit losses - loans (1) | | (185,109) | | (168,475) | (9.9) | |
| | | Net portfolio loans | | 10,804,437 | | 10,905,668 | (0.9) | |
| | Premises and equipment, net | | 248,491 | | 255,306 | (2.7) | |
| | Accrued interest receivable | | 65,023 | | 59,151 | 9.9 | |
| | Goodwill and other intangible assets, net | | 1,165,566 | | 1,166,853 | (0.1) | |
| | Bank-owned life insurance | | 304,288 | | 303,022 | 0.4 | |
| | Other assets | | 265,172 | | 269,912 | (1.8) | |
| | Total Assets | | $ 16,552,140 | | $ 16,755,395 | (1.2) | |
| | | | | | | | | | |
| | Liabilities | | | | | | |
| | Deposits: | | | | | | |
| | | Non-interest bearing demand | | $ 4,073,305 | | $ 4,067,903 | 0.1 | |
| | | Interest bearing demand | | 2,633,601 | | 2,596,132 | 1.4 | |
| | | Money market | | 1,619,410 | | 1,610,248 | 0.6 | |
| | | Savings deposits | | 2,167,597 | | 2,103,154 | 3.1 | |
| | | Certificates of deposit | | 1,707,512 | | 1,809,016 | (5.6) | |
| | | | Total deposits | | 12,201,425 | | 12,186,453 | 0.1 | |
| | Federal Home Loan Bank borrowings | | 794,621 | | 1,129,631 | (29.7) | |
| | Other short-term borrowings | | 381,909 | | 390,777 | (2.3) | |
| | Subordinated debt and junior subordinated debt | | 192,150 | | 192,080 | 0.0 | |
| | | | Total borrowings | | 1,368,680 | | 1,712,488 | (20.1) | |
| | Accrued interest payable | | 5,014 | | 6,040 | (17.0) | |
| | Other liabilities | | 244,055 | | 280,893 | (13.1) | |
| | Total liabilities | | 13,819,174 | | 14,185,874 | (2.6) | |
| | | | | | | | | | |
| | Shareholders' Equity | | | | | | |
| | Preferred stock, no par value; 1,000,000 shares authorized in 2020 and 2019, respectively; | | | | | | |
| | | 150,000 shares 6.75% non-cumulative perpetual preferred stock, Series A, | | | | | | |
| | | liquidation preference $150.0 million, issued and outstanding at September 30, 2020 | | | | | | |
| | | and 0 shares issued and outstanding at December 31, 2019, respectively. | | 144,529 | | - | 100.0 | |
| | Common stock, $2.0833 par value; 100,000,000 shares authorized; | | | | | | |
| | | 68,081,306 and 68,078,116 shares issued, respectively; | | | | | | |
| | | 67,216,012 and 67,211,192 shares outstanding, respectively | | 141,834 | | 141,827 | 0.0 | |
| | Capital surplus | | 1,634,172 | | 1,633,079 | 0.1 | |
| | Retained earnings | | 802,892 | | 782,990 | 2.5 | |
| | Treasury stock (865,294 and 866,924 shares - at cost) | | (27,403) | | (27,518) | 0.4 | |
| | Accumulated other comprehensive income (loss) | | 38,301 | | 40,516 | (5.5) | |
| | Deferred benefits for directors | | (1,359) | | (1,373) | 1.0 | |
| | Total Shareholders' Equity | | 2,732,966 | | 2,569,521 | 6.4 | |
| | Total Liabilities and Shareholders' Equity | | $ 16,552,140 | | $ 16,755,395 | (1.2) | |
| | | | | | | | | | |
| | | | | | | | | | |
| | (1) Allowance for credit losses - loans includes a day 1 adjustment of $41.4 million due to the adoption of ASU 2016-13. | | | | | | |
| | | | | | | | | | |
| | NM - Not Meaningful | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | WESBANCO, INC. | | | | | | | | | | | | | | | | | | | | |
| | Consolidated Selected Financial Highlights | | | | | | | | | | | | | | | | Page 9 | | |
| | (unaudited, dollars in thousands) | | | | | | | | | | | | | | | | | | |
| | Average balance sheet and | | | | | | | | | | | | | | | | | | | |
| | net interest margin analysis | | | | Three Months Ended September 30, | | | | For the Nine Months Ended September 30, | | | |
| | | | | | | 2020 | 2019 | | | 2020 | 2019 | | |
| | | | | | | Average | Average | | | Average | Average | | | Average | Average | | | Average | Average | | |
| | Assets | | | | | Balance | Rate | | | Balance | Rate | | | Balance | Rate | | | Balance | Rate | | |
| | Due from banks - interest bearing | | | | $ 755,575 | 0.16 | % | | $ 71,163 | 2.41 | % | | $ 509,928 | 0.25 | % | | $ 73,617 | 2.50 | % | |
| | Loans, net of unearned income (1) | | | | 11,107,106 | 4.17 | | | 7,751,724 | 4.88 | | | 10,813,737 | 4.34 | | | 7,704,212 | 4.99 | | |
| | Securities: (2) | | | | | | | | | | | | | | | | | | | | |
| | Taxable | | | | | 2,121,780 | 2.19 | | | 2,301,933 | 2.76 | | | 2,328,196 | 2.45 | | | 2,330,439 | 2.81 | | |
| | Tax-exempt (3) | | | | | 603,835 | 3.49 | | | 684,164 | 3.52 | | | 624,278 | 3.50 | | | 744,949 | 3.50 | | |
| | Total securities | | | | | 2,725,615 | 2.47 | | | 2,986,097 | 2.93 | | | 2,952,474 | 2.67 | | | 3,075,388 | 2.97 | | |
| | Other earning assets | | | | | 56,575 | 6.88 | | | 53,181 | 6.80 | | | 65,849 | 6.27 | | | 51,954 | 7.12 | | |
| | Total earning assets (3) | | | | 14,644,871 | 3.66 | % | | 10,862,165 | 4.34 | % | | 14,341,988 | 3.86 | % | | 10,905,171 | 4.41 | % | |
| | Other assets | | | | | 2,074,846 | | | | 1,625,988 | | | | 2,065,777 | | | | 1,590,847 | | | |
| | Total Assets | | | | | $ 16,719,717 | | | | $ 12,488,153 | | | | $ 16,407,765 | | | | $ 12,496,018 | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | Liabilities and Shareholders' Equity | | | | | | | | | | | | | | | | | | |
| | Interest bearing demand deposits | | | | $ 2,654,161 | 0.18 | % | | $ 2,126,720 | 0.84 | % | | $ 2,518,952 | 0.32 | % | | $ 2,131,887 | 0.80 | % | |
| | Money market accounts | | | | 1,623,969 | 0.17 | | | 1,097,930 | 0.71 | | | 1,590,498 | 0.33 | | | 1,122,665 | 0.70 | | |
| | Savings deposits | | | | | 2,140,932 | 0.06 | | | 1,686,267 | 0.20 | | | 2,051,930 | 0.10 | | | 1,674,262 | 0.16 | | |
| | Certificates of deposit | | | | | 1,761,087 | 0.72 | | | 1,321,696 | 1.15 | | | 1,865,439 | 0.77 | | | 1,385,349 | 1.14 | | |
| | Total interest bearing deposits | | | | 8,180,149 | 0.26 | | | 6,232,613 | 0.71 | | | 8,026,819 | 0.37 | | | 6,314,163 | 0.69 | | |
| | Federal Home Loan Bank borrowings | | | 1,006,593 | 2.16 | | | 1,048,401 | 2.51 | | | 1,285,266 | 2.18 | | | 1,036,464 | 2.49 | | |
| | Other borrowings | | | | | 383,771 | 0.32 | | | 317,931 | 1.69 | | | 361,949 | 0.54 | | | 321,976 | 1.82 | | |
| | Subordinated debt and junior subordinated debt | | | 192,093 | 3.87 | | | 156,561 | 5.26 | | | 194,195 | 4.40 | | | 169,944 | 5.37 | | |
| | Total interest bearing liabilities | | | 9,762,606 | 0.53 | % | | 7,755,506 | 1.09 | % | | 9,868,229 | 0.69 | % | | 7,842,547 | 1.07 | % | |
| | Non-interest bearing demand deposits | | | 4,041,681 | | | | 2,481,384 | | | | 3,679,743 | | | | 2,463,076 | | | |
| | Other liabilities | | | | | 252,917 | | | | 153,729 | | | | 239,797 | | | | 139,761 | | | |
| | Shareholders' equity | | | | | 2,662,513 | | | | 2,097,534 | | | | 2,619,996 | | | | 2,050,634 | | | |
| | Total Liabilities and Shareholders' Equity | | | $ 16,719,717 | | | | $ 12,488,153 | | | | $ 16,407,765 | | | | $ 12,496,018 | | | |
| | Taxable equivalent net interest spread | | | | 3.13 | % | | | 3.25 | % | | | 3.17 | % | | | 3.34 | % | |
| | Taxable equivalent net interest margin | | | | 3.31 | % | | | 3.56 | % | | | 3.38 | % | | | 3.64 | % | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | (1) Gross of allowance for loan losses and net of unearned income. Includes non-accrual and loans held for sale. Loan fees included in interest income on loans are $6.2 million and $0.4 million for the three months ended September 30, 2020 and 2019, respectively, and are $9.5 million and $1.3 million for the nine months ended September 30, 2020 and 2019, respectively. As part of loan fees for both the three and nine month ended September 30, 2020, is $5.6 million and $7.7 million of PPP loan fees. Additionally, loan accretion included in interest income on loans acquired from prior acquisitions was $4.2 million and $3.4 million for the three months ended September 30, 2020 and 2019, respectively, and are $12.5 million and $13.0 million for the nine months ended September 30, 2020 and 2019, respectively. Accretion on interest bearing liabilities acquired from the prior acquisitions was $2.1 million and $0.3 million for the three months ended September 30, 2020 and 2019, respectively, and are $8.1 million and $0.9 million for the nine months ended September 30, 2020 and 2019, respectively.(2) Average yields on available-for-sale securities are calculated based on amortized cost.(3) Taxable equivalent basis is calculated on tax-exempt securities using a rate of 21% for each period presented. | | |
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| | WESBANCO, INC. | | | | | | | | | | |
| | Consolidated Selected Financial Highlights | | | | | | | | | Page 10 | |
| | (unaudited, dollars in thousands, except shares and per share amounts) | |
| | | | | | Quarter Ended | |
| | Statement of Income | Sept. 30, | | June 30, | | Mar. 31, | | Dec. 31, | | Sept. 30, | |
| | Interest and dividend income | 2020 | | 2020 | | 2020 | | 2019 | | 2019 | |
| | | Loans, including fees | $ 116,524 | | $ 115,068 | | $ 119,503 | | $ 105,879 | | $ 95,369 | |
| | | Interest and dividends on securities: | | | | | | | | | | |
| | | | Taxable | 11,669 | | 14,047 | | 16,986 | | 16,586 | | 15,887 | |
| | | | Tax-exempt | 4,182 | | 4,302 | | 4,456 | | 4,563 | | 4,759 | |
| | | | | Total interest and dividends on securities | 15,851 | | 18,349 | | 21,442 | | 21,149 | | 20,646 | |
| | | Other interest income | 1,282 | | 1,277 | | 1,503 | | 1,281 | | 1,333 | |
| | Total interest and dividend income | 133,657 | | 134,694 | | 142,448 | | 128,309 | | 117,348 | |
| | Interest expense | | | | | | | | | | |
| | | Interest bearing demand deposits | 1,225 | | 1,350 | | 3,393 | | 4,054 | | 4,489 | |
| | | Money market deposits | 707 | | 879 | | 2,352 | | 2,143 | | 1,973 | |
| | | Savings deposits | 303 | | 297 | | 923 | | 935 | | 861 | |
| | | Certificates of deposit | 3,197 | | 3,514 | | 4,054 | | 3,800 | | 3,830 | |
| | | | | Total interest expense on deposits | 5,432 | | 6,040 | | 10,723 | | 10,932 | | 11,153 | |
| | | Federal Home Loan Bank borrowings | 5,457 | | 7,293 | | 8,232 | | 7,279 | | 6,645 | |
| | | Other short-term borrowings | 304 | | 279 | | 870 | | 1,009 | | 1,353 | |
| | | Subordinated debt and junior subordinated debt | 1,871 | | 2,069 | | 2,461 | | 2,125 | | 2,077 | |
| | | | | Total interest expense | 13,064 | | 15,681 | | 22,286 | | 21,345 | | 21,228 | |
| | Net interest income | 120,593 | | 119,013 | | 120,162 | | 106,964 | | 96,120 | |
| | | Provision for credit losses | 16,288 | | 61,841 | | 29,821 | | 1,824 | | 4,121 | |
| | Net interest income after provision for credit losses | 104,305 | | 57,172 | | 90,341 | | 105,140 | | 91,999 | |
| | Non-interest income | | | | | | | | | | |
| | | Trust fees | 6,426 | | 6,202 | | 6,952 | | 6,699 | | 6,425 | |
| | | Service charges on deposits | 5,332 | | 4,323 | | 6,617 | | 7,171 | | 7,056 | |
| | | Electronic banking fees | 4,780 | | 4,066 | | 4,254 | | 4,336 | | 5,253 | |
| | | Net securities brokerage revenue | 1,725 | | 1,384 | | 1,679 | | 1,393 | | 1,765 | |
| | | Bank-owned life insurance | 2,088 | | 1,752 | | 1,769 | | 1,882 | | 1,373 | |
| | | Mortgage banking income | 8,488 | | 7,531 | | 1,276 | | 2,957 | | 2,588 | |
| | | Net securities gains | 787 | | 1,299 | | 1,491 | | 520 | | 235 | |
| | | Net (loss) / gain on other real estate owned and other assets | (19) | | (66) | | 169 | | 61 | | 158 | |
| | | Other income | 5,005 | | 6,369 | | 3,802 | | 5,819 | | 2,097 | |
| | | | | Total non-interest income | 34,612 | | 32,860 | | 28,009 | | 30,838 | | 26,950 | |
| | Non-interest expense | | | | | | | | | | |
| | | Salaries and wages | 38,342 | | 36,773 | | 38,910 | | 36,984 | | 32,915 | |
| | | Employee benefits | 10,604 | | 10,138 | | 10,373 | | 9,894 | | 9,726 | |
| | | Net occupancy | 7,092 | | 6,634 | | 7,084 | | 6,162 | | 5,392 | |
| | | Equipment | 6,229 | | 5,722 | | 6,039 | | 5,570 | | 5,273 | |
| | | Marketing | 1,577 | | 1,567 | | 1,138 | | 2,059 | | 1,505 | |
| | | FDIC insurance | 1,948 | | 2,395 | | 2,113 | | 668 | | (1,221) | |
| | | Amortization of intangible assets | 3,346 | | 3,365 | | 3,374 | | 2,916 | | 2,446 | |
| | | Restructuring and merger-related expense | 3,608 | | 468 | | 5,164 | | 11,522 | | 1,688 | |
| | | Other operating expenses | 17,197 | | 18,440 | | 17,138 | | 16,781 | | 15,544 | |
| | | | | Total non-interest expense | 89,943 | | 85,502 | | 91,333 | | 92,556 | | 73,268 | |
| | Income before provision for income taxes | 48,974 | | 4,530 | | 27,017 | | 43,422 | | 45,681 | |
| | | Provision for income taxes | 7,669 | | 42 | | 3,621 | | 7,046 | | 8,334 | |
| | Net Income | | 41,305 | | 4,488 | | 23,396 | | 36,376 | | 37,347 | |
| | Preferred stock dividends | - | | - | | - | | - | | - | |
| | Net income available to common shareholders | $ 41,305 | | $ 4,488 | | $ 23,396 | | $ 36,376 | | $ 37,347 | |
| | | | | | | | | | | | | | | |
| | Taxable equivalent net interest income | $ 121,705 | | $ 120,156 | | $ 121,346 | | $ 108,177 | | $ 97,385 | |
| | | | | | | | | | | | | | | |
| | Per common share data | | | | | | | | | | |
| | Net income per common share - basic | $ 0.61 | | $ 0.07 | | $ 0.34 | | $ 0.60 | | $ 0.68 | |
| | Net income per common share - diluted | 0.61 | | 0.07 | | 0.34 | | 0.60 | | 0.68 | |
| | Net income per common share - diluted, excluding certain items (1)(2) | 0.66 | | 0.07 | | 0.40 | | 0.75 | | 0.71 | |
| | Dividends declared | 0.32 | | 0.32 | | 0.32 | | 0.31 | | 0.31 | |
| | Book value (period end) | 40.66 | | 38.23 | | 38.56 | | 38.24 | | 38.42 | |
| | Tangible common book value (period end) (1) | 21.39 | | 21.10 | | 21.36 | | 21.55 | | 21.89 | |
| | Average common shares outstanding - basic | 67,214,759 | | 67,104,628 | | 67,486,550 | | 60,461,325 | | 54,695,578 | |
| | Average common shares outstanding - diluted | 67,269,303 | | 67,181,755 | | 67,587,446 | | 60,562,366 | | 54,751,344 | |
| | Period end common shares outstanding | 67,216,012 | | 67,211,192 | | 67,058,155 | | 67,824,428 | | 54,691,225 | |
| | Full time equivalent employees | 2,618 | | 2,676 | | 2,703 | | 2,705 | | 2,330 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | (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. | | | | | | | |
| | | | | | | | | | | | | | | |
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| | WESBANCO, INC. | | | | | | | | | | | | |
| | Consolidated Selected Financial Highlights | | | | | | | | | | Page 11 | | |
| | (unaudited, dollars in thousands) | | | | | | | | | | | | |
| | | | | | Quarter Ended | | |
| | | | | | Sept. 30, | | June 30, | | Mar. 31, | | Dec. 31, | | Sept. 30, | | |
| | Asset quality data | | 2020 | | 2020 | | 2020 | | 2019 | | 2019 | | |
| | Non-performing assets: | | | | | | | | | | | | |
| | | Troubled debt restructurings - accruing | | $ 4,191 | | $ 5,105 | | $ 5,434 | | $ 5,431 | | $ 5,840 | | |
| | | Non-accrual loans: | | | | | | | | | | | | |
| | | | Troubled debt restructurings | | 1,818 | | 1,339 | | 1,571 | | 1,422 | | 1,345 | | |
| | | | Other non-accrual loans | | 35,448 | | 34,119 | | 32,796 | | 43,491 | | 33,456 | | |
| | | | Total non-accrual loans | | 37,266 | | 35,458 | | 34,367 | | 44,913 | | 34,801 | | |
| | | | Total non-performing loans | | 41,457 | | 40,563 | | 39,801 | | 50,344 | | 40,641 | | |
| | | Other real estate and repossessed assets | | 738 | | 1,212 | | 1,083 | | 4,178 | | 3,678 | | |
| | | | Total non-performing assets | | $ 42,195 | | $ 41,775 | | $ 40,884 | | $ 54,522 | | $ 44,319 | | |
| | | | | | | | | | | | | | | | |
| | Past due loans (1): | | | | | | | | | | | | |
| | | Loans past due 30-89 days | | $ 17,338 | | $ 30,595 | | $ 32,805 | | $ 36,330 | | $ 17,906 | | |
| | | Loans past due 90 days or more | | 10,170 | | 36,903 | | 14,287 | | 11,613 | | 5,425 | | |
| | | | Total past due loans | | $ 27,508 | | $ 67,498 | | $ 47,092 | | $ 47,943 | | $ 23,331 | | |
| | | | | | | | | | | | | | | | |
| | Criticized and classified loans (2): | | | | | | | | | | | | |
| | | Criticized loans | | $ 248,264 | | $ 148,580 | | $ 120,801 | | $ 118,959 | | $ 78,880 | | |
| | | Classified loans | | 108,594 | | 98,127 | | 95,162 | | 103,519 | | 95,071 | | |
| | | | Total criticized and classified loans | | $ 356,858 | | $ 246,707 | | $ 215,963 | | $ 222,478 | | $ 173,951 | | |
| | | | | | | | | | | | | | | | |
| | Loans past due 30-89 days / total portfolio loans (3) | 0.16 | % | 0.28 | % | 0.32 | % | 0.35 | % | 0.23 | % | |
| | Loans past due 90 days or more / total portfolio loans | 0.09 | | 0.33 | | 0.14 | | 0.11 | | 0.07 | | |
| | Non-performing loans / total portfolio loans | | 0.38 | | 0.37 | | 0.38 | | 0.49 | | 0.52 | | |
| | Non-performing assets/total portfolio loans, other | | | | | | | | | | | |
| | | real estate and repossessed assets | | 0.38 | | 0.38 | | 0.39 | | 0.53 | | 0.57 | | |
| | Non-performing assets / total assets | | 0.26 | | 0.25 | | 0.26 | | 0.35 | | 0.35 | | |
| | Criticized and classified loans / total portfolio loans | 3.25 | | 2.23 | | 2.09 | | 2.17 | | 2.24 | | |
| | | | | | | | | | | | | | | | |
| | Allowance for credit losses | | | | | | | | | | | | |
| | Allowance for credit losses - loans (4) | | $ 185,109 | | $ 168,475 | | $ 114,272 | | $ 52,429 | | $ 54,317 | | |
| | Provision for credit losses (4) | | 16,288 | | 61,841 | | 29,821 | | 1,824 | | 4,121 | | |
| | Net loan and deposit account overdraft charge-offs and recoveries | (133) | | 1,942 | | 4,716 | | 4,476 | | 791 | | |
| | | | | | | | | | | | | | | | |
| | Annualized net loan charge-offs and recoveries /average loans | (0.00) | % | 0.07 | % | 0.18 | % | 0.20 | % | 0.04 | % | |
| | Allowance for credit losses - loans / total portfolio loans | 1.68 | % | 1.52 | % | 1.10 | % | 0.51 | % | 0.70 | % | |
| | Allowance for credit losses - loans / total portfolio loans excluding PPP loans | 1.83 | % | 1.65 | % | 1.10 | % | 0.51 | % | 0.70 | % | |
| | Allowance for credit losses - loans / non-performing loans | 4.47 | x | 4.15 | x | 2.87 | x | 1.04 | x | 1.34 | x | |
| | Allowance for credit losses - loans / non-performing loans and | | | | | | | | | | | |
| | | loans past due | | 2.68 | x | 1.56 | x | 1.32 | x | 0.53 | x | 0.85 | x | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | Quarter Ended | | |
| | | | | | Sept. 30, | | June 30, | | Mar. 31, | | Dec. 31, | | Sept. 30, | | |
| | | | | | 2020 | | 2020 | | 2020 | | 2019 | | 2019 | | |
| | Capital ratios | | | | | | | | | | | | |
| | Tier I leverage capital | | 10.18 | % | 9.09 | % | 9.64 | % | 11.30 | % | 11.30 | % | |
| | Tier I risk-based capital | | 14.29 | | 12.59 | | 12.51 | | 12.89 | | 15.40 | | |
| | Total risk-based capital | | 17.18 | | 15.33 | | 14.83 | | 15.12 | | 16.36 | | |
| | Common equity tier 1 capital ratio (CET 1) | | 12.99 | | 12.59 | | 12.51 | | 12.89 | | 13.87 | | |
| | Average shareholders' equity to average assets | | 15.92 | | 15.57 | | 16.43 | | 16.73 | | 16.80 | | |
| | Tangible equity to tangible assets (5) | | 10.27 | | 9.09 | | 9.65 | | 10.02 | | 10.24 | | |
| | Tangible common equity to tangible assets (5) | | 9.33 | | 9.09 | | 9.65 | | 10.02 | | 10.24 | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | (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 $853.1 million of PPP loans as of September 30, 2020. | | | | | | | | | | |
| | (4) The provision for credit losses includes $0.1 million and $5.1 million for loan commitments for the three months ended September 30, 2020 and June 30, 2020, respectively. | | |
| | | Excludes the allowance for credit losses - loan commitments, which is included in other liabilities, is $10.8 million and $10.7 million as of September 30, 2020 and June 30, 2020, respectively. | | |
| | (5) See non-GAAP financial measures for additional information relating to the calculation of this ratio. | | | | | | | | |
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| | 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 | |
| | | | Sept. 30, | | June 30, | | Mar. 31, | | Dec. 31, | | Sept. 30, | | Sept. 30, | |
| | (unaudited, dollars in thousands, except shares and per share amounts) | 2020 | | 2020 | | 2020 | | 2019 | | 2019 | | 2020 | 2019 | |
| | Return on average assets, excluding after-tax restructuring and merger-related expenses: | | | | | | | | | | | | | |
| | | Net income | $ 41,305 | | $ 4,488 | | $ 23,396 | | $ 36,376 | | $ 37,347 | | $ 69,189 | $ 122,497 | |
| | | Plus: after-tax restructuring and merger-related expenses (1) | 2,850 | | 370 | | 4,080 | | 9,102 | | 1,334 | | 7,300 | 3,852 | |
| | | Net income excluding after-tax restructuring and merger-related expenses | 44,155 | | 4,858 | | 27,476 | | 45,478 | | 38,681 | | 76,489 | 126,349 | |
| | | | | | | | | | | | | | | | |
| | | Average total assets | $ 16,719,717 | | $ 16,715,211 | | $ 15,784,939 | | $ 13,919,430 | | $ 12,488,153 | | $ 16,407,765 | $ 12,496,018 | |
| | | | | | | | | | | | | | | | |
| | Return on average assets, excluding after-tax restructuring and merger-related expenses (annualized) (2) | 1.05% | | 0.12% | | 0.70% | | 1.30% | | 1.23% | | 0.62% | 1.35% | |
| | | | | | | | | | | | | | | | |
| | Return on average equity, excluding after-tax restructuring and merger-related expenses: | | | | | | | | | | | | | |
| | | Net income | $ 41,305 | | $ 4,488 | | $ 23,396 | | $ 36,376 | | $ 37,347 | | $ 69,189 | $ 122,497 | |
| | | Plus: after-tax restructuring and merger-related expenses (1) | 2,850 | | 370 | | 4,080 | | 9,102 | | 1,334 | | 7,300 | 3,852 | |
| | | Net income excluding after-tax restructuring and merger-related expenses z | 44,155 | | 4,858 | | 27,476 | | 45,478 | | 38,681 | | 76,489 | 126,349 | |
| | | | | | | | | | | | | | | | |
| | | Average total shareholders' equity | 2,662,513 | | 2,602,938 | | 2,594,069 | | 2,329,121 | | 2,097,534 | | 2,619,996 | 2,050,634 | |
| | | | | | | | | | | | | | | | |
| | Return on average equity, excluding after-tax restructuring and merger-related expenses (annualized) (2) | 6.60% | | 0.75% | | 4.26% | | 7.75% | | 7.32% | | 3.90% | 8.24% | |
| | | | | | | | | | | | | | | | |
| | Return on average tangible equity: | | | | | | | | | | | | | |
| | | Net income | $ 41,305 | | $ 4,488 | | $ 23,396 | | $ 36,376 | | $ 37,347 | | $ 69,189 | $ 122,497 | |
| | | Plus: amortization of intangibles (1) | 2,643 | | 2,658 | | 2,665 | | 2,304 | | 1,932 | | 7,967 | 5,865 | |
| | | Net income before amortization of intangibles | 43,948 | | 7,146 | | 26,061 | | 38,680 | | 39,279 | | 77,156 | 128,362 | |
| | | | | | | | | | | | | | | | |
| | | Average total shareholders' equity | 2,662,513 | | 2,602,938 | | 2,594,069 | | 2,329,121 | | 2,097,534 | | 2,619,996 | 2,050,634 | |
| | | Less: average goodwill and other intangibles, net of def. tax liability | (1,150,549) | | (1,152,856) | | (1,112,327) | | (997,658) | | (904,204) | | (1,138,621) | (904,489) | |
| | | Average tangible equity | $ 1,511,964 | | $ 1,450,082 | | $ 1,481,742 | | $ 1,331,463 | | $ 1,193,330 | | $ 1,481,375 | $ 1,146,145 | |
| | | | | | | | | | | | | | | | |
| | Return on average tangible equity (annualized) (2) | 11.56% | | 1.98% | | 7.07% | | 11.53% | | 13.06% | | 6.96% | 14.97% | |
| | | | | | | | | | | | | | | | |
| | | Average common tangible equity | $ 1,431,657 | | $ 1,450,082 | | $ 1,481,742 | | $ 1,331,463 | | $ 1,193,330 | | $ 1,454,411 | $ 1,146,145 | |
| | Return on average common tangible equity (annualized) (2) | 12.21% | | 1.98% | | 7.07% | | 11.53% | | 13.06% | | 7.09% | 14.97% | |
| | | | | | | | | | | | | | | | |
| | Return on average tangible equity, excluding after-tax restructuring and merger-related expenses: | | | | | | | | | | | | | |
| | | Net income | $ 41,305 | | $ 4,488 | | $ 23,396 | | $ 36,376 | | $ 37,347 | | $ 69,189 | $ 122,497 | |
| | | Plus: after-tax restructuring and merger-related expenses (1) | 2,850 | | 370 | | 4,080 | | 9,102 | | 1,334 | | 7,300 | 3,852 | |
| | | Plus: amortization of intangibles (1) | 2,643 | | 2,658 | | 2,665 | | 2,304 | | 1,932 | | 7,967 | 5,865 | |
| | | Net income before amortization of intangibles and excluding | | | | | | | | | | | | | |
| | | after-tax restructuring and merger-related expenses | 46,798 | | 7,516 | | 30,141 | | 47,782 | | 40,613 | | 84,456 | 132,214 | |
| | | | | | | | | | | | | | | | |
| | | Average total shareholders' equity | 2,662,513 | | 2,602,938 | | 2,594,069 | | 2,329,121 | | 2,097,534 | | 2,619,996 | 2,050,634 | |
| | | Less: average goodwill and other intangibles, net of def. tax liability | (1,150,549) | | (1,152,856) | | (1,112,327) | | (997,658) | | (904,204) | | (1,138,621) | (904,489) | |
| | | Average tangible equity | $ 1,511,964 | | $ 1,450,082 | | $ 1,481,742 | | $ 1,331,463 | | $ 1,193,330 | | $ 1,481,375 | $ 1,146,145 | |
| | | | | | | | | | | | | | | | |
| | Return on average tangible equity, excluding after-tax restructuring and merger-related expenses (annualized) (2) | 12.31% | | 2.08% | | 8.18% | | 14.24% | | 13.50% | | 7.62% | 15.42% | |
| | | | | | | | | | | | | | | | |
| | | Average tangible common equity | $ 1,431,657 | | $ 1,450,082 | | $ 1,481,742 | | $ 1,331,463 | | $ 1,193,330 | | $ 1,454,411 | $ 1,146,145 | |
| | Return on average tangible common equity, excluding after-tax restructuring and merger-related expenses (annualized) (2) | 13.00% | | 2.08% | | 8.18% | | 14.24% | | 13.50% | | 7.76% | 15.42% | |
| | | | | | | | | | | | | | | | |
| | Efficiency ratio: | | | | | | | | | | | | | |
| | | Non-interest expense | $ 89,943 | | $ 85,502 | | $ 91,333 | | $ 92,556 | | $ 73,268 | | $ 266,779 | $ 219,652 | |
| | | Less: restructuring and merger-related expense | (3,608) | | (468) | | (5,164) | | (11,522) | | (1,688) | | (9,241) | (4,876) | |
| | | Non-interest expense excluding restructuring and merger-related expense | 86,335 | | 85,034 | | 86,169 | | 81,034 | | 71,580 | | 257,538 | 214,776 | |
| | | | | | | | | | | | | | | | |
| | | Net interest income on a fully taxable equivalent basis | 121,705 | | 120,156 | | 121,346 | | 108,177 | | 97,385 | | 363,208 | 297,046 | |
| | | Non-interest income | 34,612 | | 32,860 | | 28,009 | | 30,838 | | 26,950 | | 95,481 | 85,878 | |
| | | Net interest income on a fully taxable equivalent basis plus non-interest income | $ 156,317 | | $ 153,016 | | $ 149,355 | | $ 139,015 | | $ 124,335 | | $ 458,689 | $ 382,924 | |
| | | Efficiency Ratio | 55.23% | | 55.57% | | 57.69% | | 58.29% | | 57.57% | | 56.15% | 56.09% | |
| | | | | | | | | | | | | | | | |
| | Net income, excluding after-tax restructuring and merger-related expenses: | | | | | | | | | | | | | |
| | | Net income | $ 41,305 | | $ 4,488 | | $ 23,396 | | $ 36,376 | | $ 37,347 | | $ 69,189 | $ 122,497 | |
| | | Add: After-tax restructuring and merger-related expenses (1) | 2,850 | | 370 | | 4,080 | | 9,102 | | 1,334 | | 7,300 | 3,852 | |
| | Net income, excluding after-tax restructuring and merger-related expenses | $ 44,155 | | $ 4,858 | | $ 27,476 | | $ 45,478 | | $ 38,681 | | $ 76,489 | $ 126,349 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | Net Income, excluding after-tax restructuring and merger-related expenses per diluted share: | | | | | | | | | | | | | |
| | | Net income per diluted share | $ 0.61 | | $ 0.07 | | $ 0.35 | | $ 0.60 | | $ 0.68 | | $ 1.03 | $ 2.24 | |
| | | Add: After-tax restructuring and merger-related expenses per diluted share (1) | 0.05 | | (0.00) | | 0.06 | | 0.15 | | 0.03 | | 0.11 | 0.07 | |
| | Net income, excluding after-tax restructuring and merger-related expenses per diluted share | $ 0.66 | | $ 0.07 | | $ 0.41 | | $ 0.75 | | $ 0.71 | | $ 1.14 | $ 2.31 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | Period End | | | | |
| | | | Sept. 30, | | June 30, | | Mar. 31, | | Dec. 31, | | Sept. 30, | | | | |
| | | | 2020 | | 2020 | | 2020 | | 2019 | | 2019 | | | | |
| | Tangible common book value per share: | | | | | | | | | | | | | |
| | | Total shareholders' equity | $ 2,732,966 | | $ 2,569,521 | | $ 2,586,060 | | $ 2,593,921 | | $ 2,101,269 | | | | |
| | | Less: goodwill and other intangible assets, net of def. tax liability | (1,150,939) | | (1,151,523) | | (1,154,033) | | (1,132,262) | | (904,256) | | | | |
| | | Less: preferred shareholders' equity | (144,529) | | - | | - | | - | | - | | | | |
| | | Tangible common equity | 1,437,498 | | 1,417,998 | | 1,432,027 | | 1,461,659 | | 1,197,013 | | | | |
| | | | | | | | | | | | | | | | |
| | | Common shares outstanding | 67,216,012 | | 67,211,192 | | 67,058,155 | | 67,824,428 | | 54,691,225 | | | | |
| | | | | | | | | | | | | | | | |
| | Tangible common book value per share | $ 21.39 | | $ 21.10 | | $ 21.36 | | $ 21.55 | | $ 21.89 | | | | |
| | | | | | | | | | | | | | | | |
| | Tangible common equity to tangible assets: | | | | | | | | | | | | | |
| | | Total shareholders' equity | $ 2,732,966 | | $ 2,569,521 | | $ 2,586,060 | | $ 2,593,921 | | $ 2,101,269 | | | | |
| | | Less: goodwill and other intangible assets, net of def. tax liability | (1,150,939) | | (1,151,523) | | (1,154,033) | | (1,132,262) | | (904,256) | | | | |
| | | Tangible equity | 1,582,027 | | 1,417,998 | | 1,432,027 | | 1,461,659 | | 1,197,013 | | | | |
| | | Less: preferred shareholders' equity | (144,529) | | - | | - | | - | | - | | | | |
| | | Tangible common equity | 1,437,498 | | 1,417,998 | | 1,432,027 | | 1,461,659 | | 1,197,013 | | | | |
| | | | | | | | | | | | | | | | |
| | | Total assets | 16,552,140 | | 16,755,395 | | 15,995,572 | | 15,720,112 | | 12,593,887 | | | | |
| | | Less: goodwill and other intangible assets, net of def. tax liability | (1,150,939) | | (1,151,523) | | (1,154,033) | | (1,132,262) | | (904,256) | | | | |
| | | Tangible assets | $ 15,401,201 | | $ 15,603,872 | | $ 14,841,539 | | $ 14,587,850 | | $ 11,689,631 | | | | |
| | | | | | | | | | | | | | | | |
| | Tangible equity to tangible assets | 10.27% | | 9.09% | | 9.65% | | 10.02% | | 10.24% | | | | |
| | | | | | | | | | | | | | | | |
| | Tangible common equity to tangible assets | 9.33% | | 9.09% | | 9.65% | | 10.02% | | 10.24% | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | (1) Tax effected at 21% for all periods presented. | | | | | | | | | | | | | |
| | (2) The ratios are annualized by utilizing actual numbers of days in the quarter versus the year. | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | ADDITONAL NON-GAAP FINANCIAL MEASURES | | | | | | | | | | | | Page 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 | |
| | | | Sept. 30, | | June 30, | | Mar. 31, | | Dec. 31, | | Sept. 30, | | Sept. 30, | |
| | (unaudited, dollars in thousands, except shares and per share amounts) | 2020 | | 2020 | | 2020 | | 2019 | | 2019 | | 2020 | 2019 | |
| | Pre-tax, pre-provision income: | | | | | | | | | | | | | |
| | | Income before provision for income taxes | $ 48,974 | | $ 4,530 | | $ 27,017 | | $ 43,422 | | $ 45,681 | | $ 80,521 | $ 149,792 | |
| | | Add: provision for credit losses | 16,288 | | 61,841 | | 29,821 | | 1,824 | | 4,121 | | 107,949 | 9,375 | |
| | Pre-tax, pre-provision income | $ 65,262 | | $ 66,371 | | $ 56,838 | | $ 45,246 | | $ 49,802 | | $ 188,470 | $ 159,167 | |
| | | | | | | | | | | | | | | | |
| | Pre-tax, pre-provision income, excluding restructuring and merger-related expenses: | | | | | | | | | | | | | |
| | | Income before provision for income taxes | $ 48,974 | | $ 4,530 | | $ 27,017 | | $ 43,422 | | $ 45,681 | | $ 80,521 | $ 149,792 | |
| | | Add: provision for credit losses | 16,288 | | 61,841 | | 29,821 | | 1,824 | | 4,121 | | 107,949 | 9,375 | |
| | | Add: restructuring and merger-related expenses | 3,608 | | 468 | | 5,164 | | 11,522 | | 1,688 | | 9,241 | 4,876 | |
| | Pre-tax, pre-provision income, excluding restructuring and merger-related expenses | $ 68,870 | | $ 66,839 | | $ 62,002 | | $ 56,768 | | $ 51,490 | | $ 197,711 | $ 164,043 | |
| | | | | | | | | | | | | | | | |
| | Return on average assets, excluding certain items (1): | | | | | | | | | | | | | |
| | | Income before provision for income taxes | $ 48,974 | | $ 4,530 | | $ 27,017 | | $ 43,422 | | $ 45,681 | | $ 80,521 | $ 149,792 | |
| | | Add: provision for credit losses | 16,288 | | 61,841 | | 29,821 | | 1,824 | | 4,121 | | 107,949 | 9,375 | |
| | | Add: restructuring and merger-related expenses | 3,608 | | 468 | | 5,164 | | 11,522 | | 1,688 | | 9,241 | 4,876 | |
| | Pre-tax, pre-provision income, excluding restructuring and merger-related expenses | 68,870 | | 66,839 | | 62,002 | | 56,768 | | 51,490 | | 197,711 | 164,043 | |
| | | | | | | | | | | | | | | | |
| | | Average total assets | $ 16,719,717 | | $ 16,715,211 | | $ 15,784,939 | | $ 13,919,430 | | $ 12,488,153 | | $ 16,407,765 | $ 12,496,018 | |
| | | | | | | | | | | | | | | | |
| | Return on average assets, excluding certain items (annualized) (1) (2) | 1.64% | | 1.61% | | 1.58% | | 1.62% | | 1.64% | | 1.61% | 1.76% | |
| | | | | | | | | | | | | | | | |
| | Return on average equity, excluding certain items (1): | | | | | | | | | | | | | |
| | | Income before provision for income taxes | $ 48,974 | | $ 4,530 | | $ 27,017 | | $ 43,422 | | $ 45,681 | | $ 80,521 | $ 149,792 | |
| | | Add: provision for credit losses | 16,288 | | 61,841 | | 29,821 | | 1,824 | | 4,121 | | 107,949 | 9,375 | |
| | | Add: restructuring and merger-related expenses | 3,608 | | 468 | | 5,164 | | 11,522 | | 1,688 | | 9,241 | 4,876 | |
| | Pre-tax, pre-provision income, excluding restructuring and merger-related expenses | 68,870 | | 66,839 | | 62,002 | | 56,768 | | 51,490 | | 197,711 | 164,043 | |
| | | | | | | | | | | | | | | | |
| | | Average total shareholders' equity | 2,662,513 | | 2,602,938 | | 2,594,069 | | 2,329,121 | | 2,097,534 | | 2,619,996 | 2,050,634 | |
| | | | | | | | | | | | | | | | |
| | Return on average equity, excluding certain items (annualized) (1) (2) | 10.29% | | 10.33% | | 9.61% | | 9.67% | | 9.74% | | 10.08% | 10.70% | |
| | | | | | | | | | | | | | | | |
| | Return on average tangible equity, excluding certain items (1): | | | | | | | | | | | | | |
| | | Income before provision for income taxes | $ 48,974 | | $ 4,530 | | $ 27,017 | | $ 43,422 | | $ 45,681 | | $ 80,521 | $ 149,792 | |
| | | Add: provision for credit losses | 16,288 | | 61,841 | | 29,821 | | 1,824 | | 4,121 | | 107,949 | 9,375 | |
| | | Add: amortization of intangibles | 3,346 | | 3,365 | | 3,374 | | 2,916 | | 2,446 | | 10,085 | 7,424 | |
| | | Add: restructuring and merger-related expenses | 3,608 | | 468 | | 5,164 | | 11,522 | | 1,688 | | 9,241 | 4,876 | |
| | Income before provision, restructuring & merger-related expenses and amortization of intangibles | 72,216 | | 70,204 | | 65,376 | | 59,684 | | 53,936 | | 207,796 | 171,467 | |
| | | | | | | | | | | | | | | | |
| | | Average total shareholders' equity | 2,662,513 | | 2,602,938 | | 2,594,069 | | 2,329,121 | | 2,097,534 | | 2,619,996 | 2,050,634 | |
| | | Less: average goodwill and other intangibles, net of def. tax liability | (1,150,549) | | (1,152,856) | | (1,112,327) | | (997,658) | | (904,204) | | (1,138,621) | (904,489) | |
| | | Average tangible equity | $ 1,511,964 | | $ 1,450,082 | | $ 1,481,742 | | $ 1,331,463 | | $ 1,193,330 | | $ 1,481,375 | $ 1,146,145 | |
| | | | | | | | | | | | | | | | |
| | Return on average tangible equity, excluding certain items (annualized) (1) (2) | 19.00% | | 19.47% | | 17.75% | | 17.78% | | 17.93% | | 18.74% | 20.00% | |
| | | | | | | | | | | | | | | | |
| | | Average tangible common equity | $ 1,431,657 | | $ 1,450,082 | | $ 1,481,742 | | $ 1,331,463 | | $ 1,193,330 | | $ 1,454,411 | $ 1,146,145 | |
| | Return on average tangible common equity, excluding certain items (annualized) (1) (2) | 20.07% | | 19.47% | | 17.75% | | 17.78% | | 17.93% | | 19.08% | 20.00% | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | (1) Certain items excluded from the calculation consist of credit provision, tax provision and restructuring & merger-related expenses. | | | | | | | | |
| | (2) The ratios are annualized by utilizing actual numbers of days in the quarter versus the year. | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
SOURCE WesBanco, Inc.