WesBanco Announces Fourth Quarter 2023 Financial Results
Continued deposit and loan growth while maintaining a stable net interest margin
WHEELING, W.Va., Jan. 23, 2024 /PRNewswire/ — WesBanco, Inc. (“WesBanco”) (Nasdaq: WSBC), a diversified, multi-state bank holding company, today announced net income and related earnings per share for the three and twelve months ended December 31, 2023. Net income available to common shareholders for the fourth quarter of 2023 was $32.4 million, with diluted earnings per share of $0.55, compared to $49.7 million and $0.84 per diluted share, respectively, for the fourth quarter of 2022. For the twelve months ended December 31, 2023, net income was $148.9 million, or $2.51 per diluted share, compared to $182.0 million, or $3.02 per diluted share, for the 2022 period. As noted in the following table, net income available to common shareholders, excluding after-tax restructuring and merger-related expenses, for the three and twelve months ended December 31, 2023 were $32.4 million, or $0.55 per diluted share, and $151.9 million, or $2.56 per diluted share, respectively (non-GAAP measures).
For the Three Months Ended December 31,
For the Twelve Months Ended December 31,
2023
2022
2023
2022
(unaudited, dollars in thousands,
except per share amounts)
Net Income
Diluted
Earnings
Per Share
Net Income
Diluted
Earnings
Per Share
Net Income
Diluted
Earnings
Per Share
Net Income
Diluted
Earnings
Per Share
Net income available to common
shareholders (Non-GAAP)(1)
$ 32,437
$ 0.55
$ 49,688
$ 0.84
$ 151,933
$ 2.56
$ 183,349
$ 3.04
Less: After-tax restructuring and
merger-related expenses
–
–
(9)
–
(3,026)
(0.05)
(1,361)
(0.02)
Net income available to common
shareholders (GAAP)
$ 32,437
$ 0.55
$ 49,679
$ 0.84
$ 148,907
$ 2.51
$ 181,988
$ 3.02
(1) See non-GAAP financial measures for additional information relating to the calculation of these items.
Financial and operational highlights during the quarter ended December 31, 2023:
Deposits of $13.2 billion increased both year-over-year and sequentially, reflecting deposit gathering and retention efforts across retail and business customersAverage loans to average deposits were 87%, providing capacity to fund loan growthTotal loan growth was 8.7% year-over-year and 2.9% quarter-over-quarter, reflecting the strength of our markets and lending teamsLoan production offices continued to contribute meaningfully to the commercial loan pipelineNon-interest income increased 8.0% year-over-year, supported by new commercial loan swap and wealth management feesNew commercial swap fees totaled $9.0 million during 2023Trust assets increased to $5.4 billion, driven by both market value adjustments and organic growthNet interest margin of 3.02% was stable to the third quarter of 2023Key credit quality metrics such as non-performing assets, total past due loans, and net loan charge-offs, as percentages of total portfolio loans, have remained at low levels and favorable to peer bank averages (based upon the prior four quarters for banks with total assets between $10 billion and $25 billion)WesBanco remains well-capitalized with solid liquidity and a strong balance sheet with capacity to fund loan growthWesBanco continued to earn national accolades, being recognized as one of America’s Best Regional Banks by Newsweek
“Record interest rate escalation by the Federal Reserve had a significant impact on all banks, including WesBanco. Despite that headwind, WesBanco performed well during 2023 through our continued focus on customer service and sustainable growth strategies. We achieved sustained loan, deposit, and fee income growth, while maintaining strong capital levels and credit quality,” said Jeff Jackson, President and Chief Executive Officer, WesBanco. “Our focus on further diversifying our revenue streams with new fee-based services is driving positive non-interest income trends. As we begin 2024, we remain well-capitalized with solid liquidity and a strong balance sheet to fund loan growth, positioning us well to continue generating value for our stakeholders.”
Balance Sheet
As of December 31, 2023, total portfolio loans were $11.6 billion, which increased 8.7% year-over-year driven by strong performance from our commercial and residential lending teams. Total commercial loans of $8.2 billion, which increased 7.8% year-over-year, reflects the benefit of our commercial banker hiring and loan production office strategies and lower commercial real estate payoffs of $276 million for the year, compared to an anticipated level in the $500 million range within a more normal operating environment. Our new loan production offices accounted for more than 20% of commercial loan growth during the year. The commercial pipeline totaled $0.7 billion at December 31, 2023, approximately 28% of which is from the four new loan production offices.
Total deposits, as of December 31, 2023, were $13.2 billion, up 0.6% from September 30, 2023 and up 0.3% from December 31, 2022, reflecting the benefit of deposit gathering and retention efforts by our retail and commercial teams. Reflecting the impact of the significant increase in the federal funds rate, there continued to be some mix shift in the composition of total deposits; however, total demand deposits continue to represent 56% of total deposits, with the non-interest bearing component representing 30%, which remains consistent with the percentage range since early 2020.
Credit Quality
As of December 31, 2023, total loans past due, criticized and classified loans, non-performing loans, and non-performing assets as percentages of the loan portfolio and total assets have remained low, from a historical perspective, and within a consistent range throughout the last five quarters. Total loans past due as a percent of the loan portfolio increased 9 basis points from the prior year, but remain below the quarterly average for the last three years. Criticized and classified loans as a percent of the loan portfolio decreased 12 basis points year-over-year to 2.22%, while non-performing assets as a percentage of total assets declined 9 basis points to 0.16%. The current recorded provision was primarily driven by changes in criticized and classified loan balances, prepayment assumptions, and loan growth. The allowance for credit losses to total portfolio loans at December 31, 2023 remained at 1.12% of total loans, as compared to the third quarter, or $130.7 million. Excluded from the allowance for credit losses and related coverage ratio are fair market value adjustments on previously acquired loans representing 0.12% of total loans.
Net Interest Margin and Income
The net interest margin of 3.02% for the fourth quarter of 2023 decreased just 1 basis point sequentially but 47 basis points year-over-year primarily due to higher funding costs from increasing deposit costs and continued remix from non-interest bearing deposits into higher tier money market and certificate of deposit accounts. Total deposit funding costs were 234 basis points for the fourth quarter of 2023, and, when including non-interest deposits, total deposit funding costs were 161 basis points. Accretion from acquisitions benefited the fourth quarter net interest margin by 3 basis points, as compared to 5 basis points in the prior year period.
Fourth quarter net interest income of $117.8 million decreased $12.1 million, or 9.3%, year-over-year, reflecting the impact of rising rates on funding costs more than offsetting higher loan and securities yields and loan growth. For the twelve months ended December 31, 2023, net interest income of $481.3 million increased $7.0 million, or 1.5%, primarily due to loan growth and the benefit of rising rates on earning assets outpacing funding costs.
Non-Interest Income
For the fourth quarter of 2023, non-interest income of $30.1 million increased $2.3 million, or 8.3%, from the fourth quarter of 2022. This increase was primarily due to net securities gains of $0.9 million, as compared to a loss of $0.6 million in the prior year period, from market fluctuations of equity securities in the deferred compensation plan and higher death benefits within bank-owned life insurance. The net swap fee and valuation loss of $0.3 million reflects $2.2 million of new swap fees offset by negative fair value adjustments of $2.5 million, as compared to $1.7 million and negative $0.7 million, respectively, in the prior year period.
For the twelve months ended December 31, 2023, non-interest income of $120.4 million increased $3.1 million, or 2.6%, year-over-year due primarily to the items discussed above, partially offset by lower mortgage banking income. Mortgage banking income decreased $2.5 million from the prior year to $2.7 million due to reduced fair value adjustments on mortgage derivatives. Net gains on other assets of $1.5 million increased $1.0 million year-over-year primarily due to a $1.1 million recovery of an asset previously written-off.
Non-Interest Expense
Non-interest expense for the three months ended December 31, 2023 increased $9.0 million year-over-year to $99.5 million, reflecting increased salaries and wages, benefits, equipment and software expense, and FDIC insurance. As anticipated, salaries and wages declined sequentially which reflects efficiency improvements in the mortgage staffing model. Salaries and wages increased $2.6 million, or 6.0%, compared to the prior year period due to higher salary expense related to annual merit increases and new revenue-producing hires, mainly commercial lenders, during the past year. Employee benefits increased $2.2 million year-over-year due to higher deferred compensation expense, the offsetting gain is located within net securities gains, and higher health insurance contributions. FDIC insurance expense increased $1.3 million year-over-year due to an increase in the minimum rate for all banks. Marketing expense increased $1.2 million in support of deposit and loan generation campaigns. Equipment and software expense increased $0.9 million due to the planned upgrade of our ATM fleet with the latest technology and general inflationary cost increases for existing service agreements.
Excluding restructuring and merger-related expenses, non-interest expense during the twelve months of 2023 of $386.2 million increased $30.9 million compared to the prior year period, due primarily to the same factors as described above.
Capital
WesBanco continues to maintain what we believe are strong regulatory capital ratios, as both consolidated and bank-level regulatory capital ratios are well above the applicable “well-capitalized” standards promulgated by bank regulators and the BASEL III capital standards. At December 31, 2023, Tier I leverage was 9.87%, Tier I risk-based capital ratio was 12.05%, common equity Tier 1 capital ratio (“CET 1”) was 10.99%, and total risk-based capital was 14.91%. In addition, the tangible common equity to tangible assets ratio improved to 7.62%.
Conference Call and Webcast
WesBanco will host a conference call to discuss the Company’s financial results for the fourth quarter of 2023 at 10:00 a.m. ET on Wednesday, January 24, 2024. Interested parties can access the live webcast of the conference call through the Investor Relations section of the Company’s website, www.wesbanco.com. Participants can also listen to the conference call by dialing 888-347-6607, 855-669-9657 for Canadian callers, or 412-902-4290 for international callers, and asking to be joined into the WesBanco call. Please log in or dial in at least 10 minutes prior to the start time to ensure a connection.
A replay of the conference call will be available by dialing 877-344-7529, 855-669-9658 for Canadian callers, or 412-317-0088 for international callers, and providing the access code of 4078172. The replay will begin at approximately 12:00 p.m. ET on January 24, 2024 and end at 12 a.m. ET on February 7, 2024. An archive of the webcast will be available for one year on the Investor Relations section of the Company’s website (www.wesbanco.com).
Forward-Looking Statements
Forward-looking statements in this report relating to WesBanco’s plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The information contained in this report should be read in conjunction with WesBanco’s Form 10-K for the year ended December 31, 2022 and documents subsequently filed by WesBanco with the Securities and Exchange Commission (“SEC”), including WesBanco’s Form 10-Q for the quarters ended March 31, 2023, June 30, 2023 and September 30, 2023, which are available at the SEC’s website, www.sec.gov or at WesBanco’s website, www.WesBanco.com. Investors are cautioned that forward-looking statements, which are not historical fact, involve risks and uncertainties, including those detailed in WesBanco’s most recent Annual Report on Form 10-K filed with the SEC under “Risk Factors” in Part I, Item 1A. Such statements are subject to important factors that could cause actual results to differ materially from those contemplated by such statements, including, without limitation, the effects of changing regional and national economic conditions, changes in interest rates, spreads on earning assets and interest-bearing liabilities, and associated interest rate sensitivity; sources of liquidity available to WesBanco and its related subsidiary operations; potential future credit losses and the credit risk of commercial, real estate, and consumer loan customers and their borrowing activities; actions of the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Consumer Financial Protection Bureau, the SEC, the Financial Institution Regulatory Authority, the Municipal Securities Rulemaking Board, the Securities Investors Protection Corporation, and other regulatory bodies; potential legislative and federal and state regulatory actions and reform, including, without limitation, the impact of the implementation of the Dodd-Frank Act; adverse decisions of federal and state courts; fraud, scams and schemes of third parties; cyber-security breaches; competitive conditions in the financial services industry; rapidly changing technology affecting financial services; marketability of debt instruments and corresponding impact on fair value adjustments; and/or other external developments materially impacting WesBanco’s operational and financial performance. WesBanco does not assume any duty to update forward-looking statements.
Non-GAAP Financial Measures
In addition to the results of operations presented in accordance with Generally Accepted Accounting Principles (GAAP), WesBanco’s management uses, and this presentation contains or references, certain non-GAAP financial measures, such as pre-tax pre-provision income, tangible common equity/tangible assets; net income excluding after-tax restructuring and merger-related expenses; efficiency ratio; return on average assets; and return on average tangible equity. WesBanco believes these financial measures provide information useful to investors in understanding our operational performance and business and performance trends which facilitate comparisons with the performance of others in the financial services industry. Although WesBanco believes that these non-GAAP financial measures enhance investors’ understanding of WesBanco’s business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. The non-GAAP financial measures contained therein should be read in conjunction with the audited financial statements and analysis as presented in the Annual Report on Form 10-K as well as the unaudited financial statements and analyses as presented in the Quarterly Reports on Forms 10-Q for WesBanco and its subsidiaries, as well as other filings that the company has made with the SEC.
About WesBanco, Inc.
Founded in 1870, Wesbanco, Inc. is a diversified and balanced financial services company that delivers large bank capabilities with a community bank feel. Our distinct long-term growth strategies are built upon unique sustainable advantages permitting us to span six states with meaningful market share. The company’s banking subsidiary, Wesbanco Bank, Inc., operates more than 190 financial centers in the states of Indiana, Kentucky, Maryland, Ohio, Pennsylvania, and West Virginia. Built upon our ‘Better Banking Pledge’, our customer-centric service culture is focused on growing long-term relationships by pledging to serve all personal and business customer needs efficiently and effectively. In addition to a full range of online and mobile banking options and a full-suite of commercial products and services, the company provides trust, wealth management, securities brokerage, and private banking services through its century-old Trust and Investment Services department, with approximately $5.4 billion of assets under management (as of December 31, 2023). The company also offers insurance and brokerage services through its affiliates and subsidiaries. Learn more at www.wesbanco.com and follow us on Facebook, LinkedIn and X, formerly Twitter.
WESBANCO, INC.
Consolidated Selected Financial Highlights
Page 5
(unaudited, dollars in thousands, except shares and per share amounts)
For the Three Months Ended
For the Twelve Months Ended
Statement of Income
December 31,
December 31,
Interest and dividend income
2023
2022
% Change
2023
2022
% Change
Loans, including fees
$ 162,498
$ 123,307
31.8
$ 596,852
$ 422,401
41.3
Interest and dividends on securities:
Taxable
17,798
18,655
(4.6)
73,449
66,123
11.1
Tax-exempt
4,639
4,853
(4.4)
18,830
18,818
0.1
Total interest and dividends on securities
22,437
23,508
(4.6)
92,279
84,941
8.6
Other interest income
6,383
2,103
203.5
22,385
6,314
254.5
Total interest and dividend income
191,318
148,918
28.5
711,516
513,656
38.5
Interest expense
Interest bearing demand deposits
23,686
7,264
226.1
72,866
12,181
498.2
Money market deposits
14,302
1,890
656.7
36,616
3,562
928.0
Savings deposits
7,310
2,454
197.9
23,869
4,115
480.0
Certificates of deposit
8,380
742
NM
18,472
4,089
351.7
Total interest expense on deposits
53,678
12,350
334.6
151,823
23,947
534.0
Federal Home Loan Bank borrowings
14,841
2,634
463.4
59,318
3,968
NM
Other short-term borrowings
891
324
175.0
2,545
568
348.1
Subordinated debt and junior subordinated debt
4,150
3,736
11.1
16,492
10,860
51.9
Total interest expense
73,560
19,044
286.3
230,178
39,343
485.1
Net interest income
117,758
129,874
(9.3)
481,338
474,313
1.5
Provision for credit losses
4,803
3,123
53.8
17,734
(1,663)
NM
Net interest income after provision for credit losses
112,955
126,751
(10.9)
463,604
475,976
(2.6)
Non-interest income
Trust fees
7,019
6,672
5.2
28,135
27,551
2.1
Service charges on deposits
6,989
6,762
3.4
26,116
26,281
(0.6)
Electronic banking fees
4,890
4,695
4.2
19,454
20,002
(2.7)
Net swap fee and valuation (loss)/income
(345)
1,015
(134.0)
6,912
7,067
(2.2)
Net securities brokerage revenue
2,563
2,556
0.3
10,055
9,525
5.6
Bank-owned life insurance
3,455
2,464
40.2
11,002
10,728
2.6
Mortgage banking income
650
621
4.7
2,652
5,129
(48.3)
Net securities gains/(losses)
887
(600)
247.8
900
(1,777)
150.6
Net gains on other real estate owned and other assets
445
550
(19.1)
1,520
482
215.4
Other income
3,521
3,035
16.0
13,701
12,403
10.5
Total non-interest income
30,074
27,770
8.3
120,447
117,391
2.6
Non-interest expense
Salaries and wages
45,164
42,606
6.0
176,938
167,028
5.9
Employee benefits
11,409
9,198
24.0
46,901
37,771
24.2
Net occupancy
6,417
6,262
2.5
25,338
26,105
(2.9)
Equipment and software
9,648
8,712
10.7
36,666
32,508
12.8
Marketing
2,975
1,788
66.4
11,178
9,335
19.7
FDIC insurance
3,369
2,051
64.3
12,249
7,901
55.0
Amortization of intangible assets
2,243
2,541
(11.7)
9,088
10,278
(11.6)
Restructuring and merger-related expense
–
11
(100.0)
3,830
1,723
122.3
Other operating expenses
18,278
17,286
5.7
67,814
64,317
5.4
Total non-interest expense
99,503
90,455
10.0
390,002
356,966
9.3
Income before provision for income taxes
43,526
64,066
(32.1)
194,049
236,401
(17.9)
Provision for income taxes
8,558
11,856
(27.8)
35,017
44,288
(20.9)
Net Income
34,968
52,210
(33.0)
159,032
192,113
(17.2)
Preferred stock dividends
2,531
2,531
–
10,125
10,125
–
Net income available to common shareholders
$ 32,437
$ 49,679
(34.7)
$ 148,907
$ 181,988
(18.2)
Taxable equivalent net interest income
$ 118,991
$ 131,164
(9.3)
$ 486,343
$ 479,315
1.5
Per common share data
Net income per common share – basic
$ 0.55
$ 0.84
(34.5)
$ 2.51
$ 3.03
(17.2)
Net income per common share – diluted
0.55
0.84
(34.5)
2.51
3.02
(16.9)
Net income per common share – diluted, excluding certain items (1)(2)
0.55
0.84
(34.5)
2.56
3.04
(15.8)
Dividends declared
0.36
0.35
2.9
1.41
1.37
2.9
Book value (period end)
40.23
38.55
4.4
40.23
38.55
4.4
Tangible book value (period end) (1)
21.28
19.43
9.5
21.28
19.43
9.5
Average common shares outstanding – basic
59,370,171
59,188,238
0.3
59,303,210
60,047,177
(1.2)
Average common shares outstanding – diluted
59,479,031
59,374,204
0.2
59,427,989
60,215,374
(1.3)
Period end common shares outstanding
59,376,435
59,198,963
0.3
59,376,435
59,198,963
0.3
Period end preferred shares outstanding
150,000
150,000
–
150,000
150,000
–
(1) See non-GAAP financial measures for additional information relating to the calculation of this item.
(2) Certain items excluded from the calculation consist of after-tax restructuring and merger-related expenses.
NM = Not Meaningful
WESBANCO, INC.
Consolidated Selected Financial Highlights
Page 6
(unaudited, dollars in thousands)
Selected ratios
For the Twelve Months Ended
December 31,
2023
2022
% Change
Return on average assets
0.86
%
1.08
%
(20.37)
%
Return on average assets, excluding
after-tax restructuring and merger-related expenses (1)
0.88
1.09
(19.27)
Return on average equity
6.02
7.23
(16.74)
Return on average equity, excluding
after-tax restructuring and merger-related expenses (1)
6.14
7.29
(15.78)
Return on average tangible equity (1)
11.59
13.78
(15.89)
Return on average tangible equity, excluding
after-tax restructuring and merger-related expenses (1)
11.82
13.88
(14.84)
Return on average tangible common equity (1)
12.99
15.39
(15.59)
Return on average tangible common equity, excluding
after-tax restructuring and merger-related expenses (1)
13.24
15.50
(14.58)
Yield on earning assets (2)
4.63
3.47
33.43
Cost of interest bearing liabilities
2.25
0.42
435.71
Net interest spread (2)
2.38
3.05
(21.97)
Net interest margin (2)
3.14
3.20
(1.88)
Efficiency (1) (2)
63.64
59.53
6.90
Average loans to average deposits
85.71
74.21
15.50
Annualized net loan charge-offs/average loans
0.04
0.02
100.00
Effective income tax rate
18.05
18.73
(3.63)
For the Three Months Ended
Dec. 31,
Sept. 30,
June 30,
Mar. 31,
Dec. 31,
2023
2023
2023
2023
2022
Return on average assets
0.74
%
0.78
%
0.98
%
0.95
%
1.18
%
Return on average assets, excluding
after-tax restructuring and merger-related expenses (1)
0.74
0.80
0.98
1.01
1.18
Return on average equity
5.21
5.49
6.81
6.57
8.18
Return on average equity, excluding
after-tax restructuring and merger-related expenses (1)
5.21
5.57
6.82
6.98
8.18
Return on average tangible equity (1)
10.11
10.60
12.98
12.72
16.05
Return on average tangible equity, excluding
after-tax restructuring and merger-related expenses (1)
10.11
10.75
12.99
13.48
16.05
Return on average tangible common equity (1)
11.32
11.87
14.52
14.28
18.09
Return on average tangible common equity, excluding
after-tax restructuring and merger-related expenses (1)
11.32
12.03
14.53
15.13
18.10
Yield on earning assets (2)
4.88
4.72
4.59
4.32
4.00
Cost of interest bearing liabilities
2.76
2.52
2.15
1.52
0.82
Net interest spread (2)
2.12
2.20
2.44
2.80
3.18
Net interest margin (2)
3.02
3.03
3.18
3.36
3.49
Efficiency (1) (2)
66.75
64.95
62.33
60.66
56.91
Average loans to average deposits
87.07
86.79
85.44
83.46
78.43
Annualized net loan charge-offs and recoveries /average loans
0.06
0.01
0.02
0.07
0.02
Effective income tax rate
19.66
16.83
16.80
19.02
18.51
Trust assets, market value at period end
$ 5,360,657
$ 4,982,324
$ 5,127,265
$ 5,026,631
$ 4,878,479
(1) See non-GAAP financial measures for additional information relating to the calculation of this item.
(2) The yield on earning assets, net interest margin, net interest spread and efficiency ratios are presented on a fully
taxable-equivalent (FTE) and annualized basis. The FTE basis adjusts for the tax benefit of income on certain tax-exempt
loans and investments. WesBanco believes this measure to be the preferred industry measurement of net interest income and
provides a relevant comparison between taxable and non-taxable amounts.
WESBANCO, INC.
Consolidated Selected Financial Highlights
Page 7
(unaudited, dollars in thousands, except shares)
% Change
Balance sheet
December 31,
September 30,
September 30, 2023
Assets
2023
2022
% Change
2023
to December 31, 2023
Cash and due from banks
$ 158,504
$ 166,182
(4.6)
$ 153,012
3.6
Due from banks – interest bearing
436,879
242,229
80.4
342,070
27.7
Securities:
Equity securities, at fair value
12,320
11,506
7.1
11,453
7.6
Available-for-sale debt securities, at fair value
2,194,329
2,529,140
(13.2)
2,196,141
(0.1)
Held-to-maturity debt securities (fair values of $1,069,159; $1,084,390
and $998,987, respectively)
1,199,527
1,248,629
(3.9)
1,210,992
(0.9)
Allowance for credit losses, held-to-maturity debt securities
(192)
(220)
12.7
(180)
(6.7)
Net held-to-maturity debt securities
1,199,335
1,248,409
(3.9)
1,210,812
(0.9)
Total securities
3,405,984
3,789,055
(10.1)
3,418,406
(0.4)
Loans held for sale
16,354
8,249
98.3
17,677
(7.5)
Portfolio loans:
Commercial real estate
6,565,448
6,061,344
8.3
6,387,183
2.8
Commercial and industrial
1,670,659
1,579,395
5.8
1,587,611
5.2
Residential real estate
2,438,574
2,140,584
13.9
2,392,531
1.9
Home equity
734,219
695,065
5.6
715,186
2.7
Consumer
229,561
226,340
1.4
233,362
(1.6)
Total portfolio loans, net of unearned income
11,638,461
10,702,728
8.7
11,315,873
2.9
Allowance for credit losses – loans
(130,675)
(117,790)
(10.9)
(126,615)
(3.2)
Net portfolio loans
11,507,786
10,584,938
8.7
11,189,258
2.8
Premises and equipment, net
233,571
220,892
5.7
226,377
3.2
Accrued interest receivable
77,435
68,522
13.0
73,014
6.1
Goodwill and other intangible assets, net
1,132,267
1,141,355
(0.8)
1,134,510
(0.2)
Bank-owned life insurance
355,033
352,361
0.8
356,962
(0.5)
Other assets
388,561
358,122
8.5
433,091
(10.3)
Total Assets
$ 17,712,374
$ 16,931,905
4.6
$ 17,344,377
2.1
Liabilities
Deposits:
Non-interest bearing demand
$ 3,962,592
$ 4,700,438
(15.7)
$ 4,169,956
(5.0)
Interest bearing demand
3,463,443
3,119,807
11.0
3,278,956
5.6
Money market
2,017,713
1,684,023
19.8
1,905,001
5.9
Savings deposits
2,493,254
2,741,004
(9.0)
2,559,894
(2.6)
Certificates of deposit
1,231,702
885,818
39.0
1,176,421
4.7
Total deposits
13,168,704
13,131,090
0.3
13,090,228
0.6
Federal Home Loan Bank borrowings
1,350,000
705,000
91.5
1,125,000
20.0
Other short-term borrowings
105,893
135,069
(21.6)
106,693
(0.7)
Subordinated debt and junior subordinated debt
279,078
281,404
(0.8)
282,079
(1.1)
Total borrowings
1,734,971
1,121,473
54.7
1,513,772
14.6
Accrued interest payable
11,121
4,593
142.1
11,416
(2.6)
Other liabilities
264,516
248,087
6.6
281,020
(5.9)
Total Liabilities
15,179,312
14,505,243
4.6
14,896,436
1.9
Shareholders’ Equity
Preferred stock, no par value; 1,000,000 shares authorized; 150,000 shares
6.75% non-cumulative perpetual preferred stock, Series A, liquidation
preference $150.0 million, issued and outstanding, respectively
144,484
144,484
–
144,484
–
Common stock, $2.0833 par value; 100,000,000 shares authorized;
68,081,306 shares issued; 59,376,435, 59,198,963 and 59,364,696
shares outstanding, respectively
141,834
141,834
–
141,834
–
Capital surplus
1,635,859
1,635,877
(0.0)
1,633,395
0.2
Retained earnings
1,142,586
1,077,675
6.0
1,131,597
1.0
Treasury stock (8,704,871, 8,882,343 and 8,716,610 shares – at cost, respectively)
(302,995)
(308,964)
1.9
(303,424)
0.1
Accumulated other comprehensive loss
(226,693)
(262,416)
13.6
(297,906)
23.9
Deferred benefits for directors
(2,013)
(1,828)
(10.1)
(2,039)
1.3
Total Shareholders’ Equity
2,533,062
2,426,662
4.4
2,447,941
3.5
Total Liabilities and Shareholders’ Equity
$ 17,712,374
$ 16,931,905
4.6
$ 17,344,377
2.1
WESBANCO, INC.
Consolidated Selected Financial Highlights
Page 8
(unaudited, dollars in thousands)
Average balance sheet and
net interest margin analysis
For the Three Months Ended Dec. 31,
For the Twelve Months Ended Dec. 31,
2023
2022
2023
2022
Average
Average
Average
Average
Average
Average
Average
Average
Assets
Balance
Rate
Balance
Rate
Balance
Rate
Balance
Rate
Due from banks – interest bearing
$ 332,670
6.25
%
$ 178,706
4.32
%
$ 348,109
5.43
%
$ 611,482
0.94
%
Loans, net of unearned income (1)
11,490,379
5.61
10,456,648
4.68
11,132,618
5.36
10,083,925
4.19
Securities: (2)
Taxable
3,010,064
2.35
3,429,372
2.16
3,150,781
2.33
3,461,414
1.91
Tax-exempt (3)
770,186
3.02
811,593
3.00
783,697
3.04
789,564
3.02
Total securities
3,780,250
2.48
4,240,965
2.32
3,934,478
2.47
4,250,978
2.12
Other earning assets
52,879
8.57
19,494
3.20
55,368
6.26
15,265
3.66
Total earning assets (3)
15,656,178
4.88
%
14,895,813
4.00
%
15,470,573
4.63
%
14,961,650
3.47
%
Other assets
1,769,933
1,790,117
1,789,147
1,917,891
Total Assets
$ 17,426,111
$ 16,685,930
$ 17,259,720
$ 16,879,541
Liabilities and Shareholders’ Equity
Interest bearing demand deposits
$ 3,417,220
2.75
%
$ 3,169,673
0.91
%
$ 3,243,786
2.25
%
$ 3,314,384
0.37
%
Money market accounts
1,985,203
2.86
1,739,874
0.43
1,763,921
2.08
1,774,152
0.20
Savings deposits
2,515,798
1.15
2,726,647
0.36
2,655,105
0.90
2,692,568
0.15
Certificates of deposit
1,191,583
2.79
931,853
0.32
1,008,950
1.83
1,098,614
0.37
Total interest bearing deposits
9,109,804
2.34
8,568,047
0.57
8,671,762
1.75
8,879,718
0.27
Federal Home Loan Bank borrowings
1,080,163
5.45
282,934
3.69
1,138,247
5.21
175,104
2.27
Repurchase agreements
114,801
3.08
136,099
0.94
115,817
2.20
146,590
0.39
Subordinated debt and junior subordinated debt
282,004
5.84
281,265
5.27
281,788
5.85
248,192
4.38
Total interest bearing liabilities (4)
10,586,772
2.76
%
9,268,345
0.82
%
10,207,614
2.25
%
9,449,604
0.42
%
Non-interest bearing demand deposits
4,086,366
4,763,773
4,316,245
4,708,758
Other liabilities
284,448
243,051
261,234
205,670
Shareholders’ equity
2,468,525
2,410,761
2,474,627
2,515,509
Total Liabilities and Shareholders’ Equity
$ 17,426,111
$ 16,685,930
$ 17,259,720
$ 16,879,541
Taxable equivalent net interest spread
2.12
%
3.18
%
2.38
%
3.05
%
Taxable equivalent net interest margin
3.02
%
3.49
%
3.14
%
3.20
%
(1) Gross of allowance for loan losses and net of unearned income. Includes non-accrual and loans held for sale. Loan fees included in interest income on loans were $0.7 million and $0.8 million for the three months ended December 31, 2023 and 2022, respectively, and were $2.7 million and $8.8 million for the years ended December 31, 2023 and 2022, respectively. Additionally, loan accretion included in interest income on loans acquired from prior acquisitions was $1.0 million and $1.8 million for the three months ended December 31, 2023 and 2022, respectively, and $4.5 million and $8.0 million for the years ended December 31, 2023 and 2022, respectively.
(2) Average yields on available-for-sale securities are calculated based on amortized cost.
(3) Taxable equivalent basis is calculated on tax-exempt securities using a rate of 21% for each period presented.
(4) Accretion on interest bearing liabilities acquired from prior acquisitions was $0.2 million for both the three months ended December 31, 2023 and 2022, and $0.5 million and $1.1 million for the years ended December 31, 2023 and 2022, respectively.
WESBANCO, INC.
Consolidated Selected Financial Highlights
Page 9
(unaudited, dollars in thousands, except shares and per share amounts)
Quarter Ended
Statement of Income
Dec. 31,
Sept. 30,
June 30,
Mar. 31,
Dec. 31,
Interest and dividend income
2023
2023
2023
2023
2022
Loans, including fees
$ 162,498
$ 155,206
$ 145,741
$ 133,406
$ 123,307
Interest and dividends on securities:
Taxable
17,798
18,082
18,483
19,086
18,655
Tax-exempt
4,639
4,679
4,723
4,790
4,853
Total interest and dividends on securities
22,437
22,761
23,206
23,876
23,508
Other interest income
6,383
5,622
7,108
3,273
2,103
Total interest and dividend income
191,318
183,589
176,055
160,555
148,918
Interest expense
Interest bearing demand deposits
23,686
20,873
17,203
11,106
7,264
Money market deposits
14,302
10,841
7,220
4,252
1,890
Savings deposits
7,310
6,699
5,860
4,000
2,454
Certificates of deposit
8,380
5,983
2,906
1,203
742
Total interest expense on deposits
53,678
44,396
33,189
20,561
12,350
Federal Home Loan Bank borrowings
14,841
16,463
16,713
11,300
2,634
Other short-term borrowings
891
745
492
418
324
Subordinated debt and junior subordinated debt
4,150
4,303
4,094
3,944
3,736
Total interest expense
73,560
65,907
54,488
36,223
19,044
Net interest income
117,758
117,682
121,567
124,332
129,874
Provision for credit losses
4,803
6,327
3,028
3,577
3,123
Net interest income after provision for credit losses
112,955
111,355
118,539
120,755
126,751
Non-interest income
Trust fees
7,019
6,705
6,918
7,494
6,672
Service charges on deposits
6,989
6,726
6,232
6,170
6,762
Electronic banking fees
4,890
4,949
5,010
4,605
4,695
Net swap fee and valuation (loss)/income
(345)
3,845
2,612
799
1,015
Net securities brokerage revenue
2,563
2,394
2,523
2,576
2,556
Bank-owned life insurance
3,455
2,398
3,189
1,959
2,464
Mortgage banking income
650
975
601
426
621
Net securities gains/(losses)
887
(337)
205
145
(600)
Net gains/(losses) on other real estate owned and other assets
445
(28)
871
232
550
Other income
3,521
3,252
3,680
3,247
3,035
Total non-interest income
30,074
30,879
31,841
27,653
27,770
Non-interest expense
Salaries and wages
45,164
45,351
44,471
41,952
42,606
Employee benefits
11,409
11,922
11,511
12,060
9,198
Net occupancy
6,417
6,146
6,132
6,643
6,262
Equipment and software
9,648
9,132
8,823
9,063
8,712
Marketing
2,975
3,115
2,763
2,325
1,788
FDIC insurance
3,369
3,125
2,871
2,884
2,051
Amortization of intangible assets
2,243
2,262
2,282
2,301
2,541
Restructuring and merger-related expense
–
641
35
3,153
11
Other operating expenses
18,278
16,245
17,549
15,744
17,286
Total non-interest expense
99,503
97,939
96,437
96,125
90,455
Income before provision for income taxes
43,526
44,295
53,943
52,283
64,066
Provision for income taxes
8,558
7,453
9,063
9,942
11,856
Net Income
34,968
36,842
44,880
42,341
52,210
Preferred stock dividends
2,531
2,531
2,531
2,531
2,531
Net income available to common shareholders
$ 32,437
$ 34,311
$ 42,349
$ 39,810
$ 49,679
Taxable equivalent net interest income
$ 118,991
$ 118,926
$ 122,822
$ 125,605
$ 131,164
Per common share data
Net income per common share – basic
$ 0.55
$ 0.58
$ 0.71
$ 0.67
$ 0.84
Net income per common share – diluted
0.55
0.58
0.71
0.67
0.84
Net income per common share – diluted, excluding certain items (1)(2)
0.55
0.59
0.71
0.71
0.84
Dividends declared
0.36
0.35
0.35
0.35
0.35
Book value (period end)
40.23
38.80
39.10
39.34
38.55
Tangible book value (period end) (1)
21.28
19.82
20.08
20.27
19.43
Average common shares outstanding – basic
59,370,171
59,358,653
59,263,949
59,217,711
59,188,238
Average common shares outstanding – diluted
59,479,031
59,443,366
59,385,847
59,375,053
59,374,204
Period end common shares outstanding
59,376,435
59,364,696
59,355,062
59,246,569
59,198,963
Period end preferred shares outstanding
150,000
150,000
150,000
150,000
150,000
Full time equivalent employees
2,368
2,427
2,542
2,501
2,495
(1) See non-GAAP financial measures for additional information relating to the calculation of this item.
(2) Certain items excluded from the calculation consist of after-tax restructuring and merger-related expenses.
WESBANCO, INC.
Consolidated Selected Financial Highlights
Page 10
(unaudited, dollars in thousands)
Quarter Ended
Dec. 31,
Sept. 30,
June 30,
Mar. 31,
Dec. 31,
Asset quality data
2023
2023
2023
2023
2022
Non-performing assets:
Troubled debt restructurings – accruing
$ –
$ –
$ –
$ –
$ 3,230
Non-accrual loans:
Troubled debt restructurings
–
–
–
–
1,711
Other non-accrual loans
26,808
29,878
31,555
39,216
36,474
Total non-accrual loans
26,808
29,878
31,555
39,216
38,185
Total non-performing loans
26,808
29,878
31,555
39,216
41,415
Other real estate and repossessed assets
1,497
1,333
1,432
1,554
1,486
Total non-performing assets
$ 28,305
$ 31,211
$ 32,987
$ 40,770
$ 42,901
Past due loans (1):
Loans past due 30-89 days
$ 22,875
$ 16,030
$ 18,348
$ 12,920
$ 15,439
Loans past due 90 days or more
9,638
8,606
5,147
4,570
5,443
Total past due loans
$ 32,513
$ 24,636
$ 23,495
$ 17,490
$ 20,882
Criticized and classified loans (2):
Criticized loans
$ 183,174
$ 180,136
$ 119,771
$ 116,608
$ 147,945
Classified loans
75,497
70,997
67,036
57,222
102,555
Total criticized and classified loans
$ 258,671
$ 251,133
$ 186,807
$ 173,830
$ 250,500
Loans past due 30-89 days / total portfolio loans
0.20
%
0.14
%
0.16
%
0.12
%
0.14
%
Loans past due 90 days or more / total portfolio loans
0.08
0.08
0.05
0.04
0.05
Non-performing loans / total portfolio loans
0.23
0.26
0.28
0.36
0.39
Non-performing assets / total portfolio loans, other
real estate and repossessed assets
0.24
0.28
0.30
0.37
0.40
Non-performing assets / total assets
0.16
0.18
0.19
0.24
0.25
Criticized and classified loans / total portfolio loans
2.22
2.22
1.68
1.60
2.34
Allowance for credit losses
Allowance for credit losses – loans
$ 130,675
$ 126,615
$ 120,166
$ 118,698
$ 117,790
Allowance for credit losses – loan commitments
8,604
9,729
10,124
9,127
8,368
Provision for credit losses
4,803
6,327
3,028
3,577
3,123
Net loan and deposit account overdraft charge-offs and recoveries
1,857
286
581
1,919
493
Annualized net loan charge-offs and recoveries / average loans
0.06
%
0.01
%
0.02
%
0.07
%
0.02
%
Allowance for credit losses – loans / total portfolio loans
1.12
%
1.12
%
1.08
%
1.09
%
1.10
%
Allowance for credit losses – loans / non-performing loans
4.87
x
4.24
x
3.81
x
3.03
x
2.84
x
Allowance for credit losses – loans / non-performing loans and
loans past due
2.20
x
2.32
x
2.18
x
2.09
x
1.89
x
Dec. 31,
Sept. 30,
June 30,
Mar. 31,
Dec. 31,
2023
2023
2023
2023
2022
Capital ratios
Tier I leverage capital
9.87
%
9.84
%
9.78
%
9.82
%
9.90
%
Tier I risk-based capital
12.05
12.07
12.12
12.22
12.33
Total risk-based capital
14.91
14.97
14.83
14.97
15.11
Common equity tier 1 capital ratio (CET 1)
10.99
11.00
11.04
11.11
11.20
Average shareholders’ equity to average assets
14.17
14.29
14.42
14.48
14.45
Tangible equity to tangible assets (3)
8.49
8.15
8.24
8.33
8.19
Tangible common equity to tangible assets (3)
7.62
7.26
7.35
7.44
7.28
(1) Excludes non-performing loans.
(2) Criticized and classified commercial loans may include loans that are also reported as non-performing or past due.
(3) See non-GAAP financial measures for additional information relating to the calculation of this ratio.
WESBANCO, INC.
Non-GAAP Financial Measures
Page 11
The following non-GAAP financial measures used by WesBanco provide information useful to investors in understanding WesBanco’s operating performance and trends, and facilitate comparisons
with the performance of WesBanco’s peers. The following tables summarize the non-GAAP financial measures derived from amounts reported in WesBanco’s financial statements.
Three Months Ended
Year to Date
Dec. 31,
Sept. 30,
June 30,
Mar. 31,
Dec. 31,
Dec. 31,
(unaudited, dollars in thousands, except shares and per share amounts)
2023
2023
2023
2023
2022
2023
2022
Return on average assets, excluding after-tax restructuring and merger-related expenses:
Net income available to common shareholders
$ 32,437
$ 34,311
$ 42,349
$ 39,810
$ 49,679
$ 148,907
$ 181,988
Plus: after-tax restructuring and merger-related expenses (1)
–
506
28
2,491
9
3,026
1,361
Net income available to common shareholders excluding after-tax restructuring and merger-related expenses
32,437
34,817
42,377
42,301
49,688
151,933
183,349
Average total assets
$ 17,426,111
$ 17,341,959
$ 17,294,346
$ 16,970,554
$ 16,685,930
$ 17,259,720
$ 16,879,541
Return on average assets, excluding after-tax restructuring and merger-related expenses (annualized) (2)
0.74 %
0.80 %
0.98 %
1.01 %
1.18 %
0.88 %
1.09 %
Return on average equity, excluding after-tax restructuring and merger-related expenses:
Net income available to common shareholders
$ 32,437
$ 34,311
$ 42,349
$ 39,810
$ 49,679
$ 148,907
$ 181,988
Plus: after-tax restructuring and merger-related expenses (1)
–
506
28
2,491
9
3,026
1,361
Net income available to common shareholders excluding after-tax restructuring and merger-related expenses
32,437
34,817
42,377
42,301
49,688
151,933
183,349
Average total shareholders’ equity
$ 2,468,525
$ 2,478,662
$ 2,493,096
$ 2,458,067
$ 2,410,761
$ 2,474,627
$ 2,515,509
Return on average equity, excluding after-tax restructuring and merger-related expenses (annualized) (2)
5.21 %
5.57 %
6.82 %
6.98 %
8.18 %
6.14 %
7.29 %
Return on average tangible equity:
Net income available to common shareholders
$ 32,437
$ 34,311
$ 42,349
$ 39,810
$ 49,679
$ 148,907
$ 181,988
Plus: amortization of intangibles (1)
1,772
1,787
1,803
1,818
2,007
7,180
8,120
Net income available to common shareholders before amortization of intangibles
34,209
36,098
44,152
41,628
51,686
156,087
190,108
Average total shareholders’ equity
2,468,525
2,478,662
2,493,096
2,458,067
2,410,761
2,474,627
2,515,509
Less: average goodwill and other intangibles, net of def. tax liability
(1,125,593)
(1,127,404)
(1,129,155)
(1,131,027)
(1,132,894)
(1,128,277)
(1,136,062)
Average tangible equity
$ 1,342,932
$ 1,351,258
$ 1,363,941
$ 1,327,040
$ 1,277,867
$ 1,346,350
$ 1,379,447
Return on average tangible equity (annualized) (2)
10.11 %
10.60 %
12.98 %
12.72 %
16.05 %
11.59 %
13.78 %
Average tangible common equity
$ 1,198,448
$ 1,206,774
$ 1,219,457
$ 1,182,556
$ 1,133,383
$ 1,201,866
$ 1,234,963
Return on average tangible common equity (annualized) (2)
11.32 %
11.87 %
14.52 %
14.28 %
18.09 %
12.99 %
15.39 %
Return on average tangible equity, excluding after-tax restructuring and merger-related expenses:
Net income available to common shareholders
$ 32,437
$ 34,311
$ 42,349
$ 39,810
$ 49,679
$ 148,907
$ 181,988
Plus: after-tax restructuring and merger-related expenses (1)
–
506
28
2,491
9
3,026
1,361
Plus: amortization of intangibles (1)
1,772
1,787
1,803
1,818
2,007
7,180
8,120
Net income available to common shareholders before amortization of intangibles
and excluding after-tax restructuring and merger-related expenses
34,209
36,604
44,180
44,119
51,695
159,113
191,469
Average total shareholders’ equity
2,468,525
2,478,662
2,493,096
2,458,067
2,410,761
2,474,627
2,515,509
Less: average goodwill and other intangibles, net of def. tax liability
(1,125,593)
(1,127,404)
(1,129,155)
(1,131,027)
(1,132,894)
(1,128,277)
(1,136,062)
Average tangible equity
$ 1,342,932
$ 1,351,258
$ 1,363,941
$ 1,327,040
$ 1,277,867
$ 1,346,350
$ 1,379,447
Return on average tangible equity, excluding after-tax restructuring and merger-related expenses (annualized) (2)
10.11 %
10.75 %
12.99 %
13.48 %
16.05 %
11.82 %
13.88 %
Average tangible common equity
$ 1,198,448
$ 1,206,774
$ 1,219,457
$ 1,182,556
$ 1,133,383
$ 1,201,866
$ 1,234,963
Return on average tangible common equity, excluding after-tax restructuring and merger-related expenses (annualized) (2)
11.32 %
12.03 %
14.53 %
15.13 %
18.10 %
13.24 %
15.50 %
Efficiency ratio:
Non-interest expense
$ 99,503
$ 97,939
$ 96,437
$ 96,125
$ 90,455
$ 390,002
$ 356,966
Less: restructuring and merger-related expense
–
(641)
(35)
(3,153)
(11)
(3,830)
(1,723)
Non-interest expense excluding restructuring and merger-related expense
99,503
97,298
96,402
92,972
90,444
386,172
355,243
Net interest income on a fully taxable equivalent basis
118,991
118,926
122,822
125,605
131,164
486,343
479,315
Non-interest income
30,074
30,879
31,841
27,653
27,770
120,447
117,391
Net interest income on a fully taxable equivalent basis plus non-interest income
$ 149,065
$ 149,805
$ 154,663
$ 153,258
$ 158,934
$ 606,790
$ 596,706
Efficiency ratio
66.75 %
64.95 %
62.33 %
60.66 %
56.91 %
63.64 %
59.53 %
Net income available to common shareholders, excluding after-tax restructuring and merger-related expenses:
Net income available to common shareholders
$ 32,437
$ 34,311
$ 42,349
$ 39,810
$ 49,679
$ 148,907
$ 181,988
Add: After-tax restructuring and merger-related expenses (1)
–
506
28
2,491
9
3,026
1,361
Net income available to common shareholders, excluding after-tax restructuring and merger-related expenses
$ 32,437
$ 34,817
$ 42,377
$ 42,301
$ 49,688
$ 151,933
$ 183,349
Net income per common share – diluted, excluding after-tax restructuring and merger-related expenses:
Net income per common share – diluted
$ 0.55
$ 0.58
$ 0.71
$ 0.67
$ 0.84
$ 2.51
$ 3.02
Add: After-tax restructuring and merger-related expenses per common share – diluted (1)
–
0.01
–
0.04
–
0.05
0.02
Net income per common share – diluted, excluding after-tax restructuring and merger-related expenses
$ 0.55
$ 0.59
$ 0.71
$ 0.71
$ 0.84
$ 2.56
$ 3.04
Period End
Dec. 31,
Sept. 30,
June 30,
March 31,
Dec. 31,
2023
2023
2023
2023
2022
Tangible book value per share:
Total shareholders’ equity
$ 2,533,062
$ 2,447,941
$ 2,464,998
$ 2,475,457
$ 2,426,662
Less: goodwill and other intangible assets, net of def. tax liability
(1,124,811)
(1,126,583)
(1,128,371)
(1,130,172)
(1,131,990)
Less: preferred shareholder’s equity
(144,484)
(144,484)
(144,484)
(144,484)
(144,484)
Tangible common equity
1,263,767
1,176,874
1,192,143
1,200,801
1,150,188
Common shares outstanding
59,376,435
59,364,696
59,355,062
59,246,569
59,198,963
Tangible book value per share
$ 21.28
$ 19.82
$ 20.08
$ 20.27
$ 19.43
Tangible common equity to tangible assets:
Total shareholders’ equity
$ 2,533,062
$ 2,447,941
$ 2,464,998
$ 2,475,457
$ 2,426,662
Less: goodwill and other intangible assets, net of def. tax liability
(1,124,811)
(1,126,583)
(1,128,371)
(1,130,172)
(1,131,990)
Tangible equity
1,408,251
1,321,358
1,336,627
1,345,285
1,294,672
Less: preferred shareholder’s equity
(144,484)
(144,484)
(144,484)
(144,484)
(144,484)
Tangible common equity
1,263,767
1,176,874
1,192,143
1,200,801
1,150,188
Total assets
17,712,374
17,344,377
17,356,954
17,274,626
16,931,905
Less: goodwill and other intangible assets, net of def. tax liability
(1,124,811)
(1,126,583)
(1,128,371)
(1,130,172)
(1,131,990)
Tangible assets
$ 16,587,563
$ 16,217,794
$ 16,228,583
$ 16,144,454
$ 15,799,915
Tangible equity to tangible assets
8.49 %
8.15 %
8.24 %
8.33 %
8.19 %
Tangible common equity to tangible assets
7.62 %
7.26 %
7.35 %
7.44 %
7.28 %
(1) Tax effected at 21% for all periods presented.
(2) The ratios are annualized by utilizing actual numbers of days in the quarter versus the year.
WESBANCO, INC.
Additional Non-GAAP Financial Measures
Page 12
The following non-GAAP financial measures used by WesBanco provide information useful to investors in understanding WesBanco’s operating performance and trends, and facilitate comparisons
with the performance of WesBanco’s peers. The following tables summarize the non-GAAP financial measures derived from amounts reported in WesBanco’s financial statements.
Three Months Ended
Year to Date
Dec. 31,
Sept. 30,
June 30,
Mar. 31,
Dec. 31,
Dec. 31,
(unaudited, dollars in thousands, except shares and per share amounts)
2023
2023
2023
2023
2022
2023
2022
Pre-tax, pre-provision income:
Income before provision for income taxes
$ 43,526
$ 44,295
$ 53,943
$ 52,283
$ 64,066
$ 194,049
$ 236,401
Add: provision for credit losses
4,803
6,327
3,028
3,577
3,123
17,734
(1,663)
Pre-tax, pre-provision income
$ 48,329
$ 50,622
$ 56,971
$ 55,860
$ 67,189
$ 211,783
$ 234,738
Pre-tax, pre-provision income, excluding restructuring and merger-related expenses:
Income before provision for income taxes
$ 43,526
$ 44,295
$ 53,943
$ 52,283
$ 64,066
$ 194,049
$ 236,401
Add: provision for credit losses
4,803
6,327
3,028
3,577
3,123
17,734
(1,663)
Add: restructuring and merger-related expenses
–
641
35
3,153
11
3,830
1,723
Pre-tax, pre-provision income, excluding restructuring and merger-related expenses
$ 48,329
$ 51,263
$ 57,006
$ 59,013
$ 67,200
$ 215,613
$ 236,461
Return on average assets, excluding certain items (1):
Income before provision for income taxes
$ 43,526
$ 44,295
$ 53,943
$ 52,283
$ 64,066
$ 194,049
$ 236,401
Add: provision for credit losses
4,803
6,327
3,028
3,577
3,123
17,734
(1,663)
Add: restructuring and merger-related expenses
–
641
35
3,153
11
3,830
1,723
Pre-tax, pre-provision income, excluding restructuring and merger-related expenses
48,329
51,263
57,006
59,013
67,200
215,613
236,461
Average total assets
$ 17,426,111
$ 17,341,959
$ 17,294,346
$ 16,970,554
$ 16,685,930
$ 17,259,720
$ 16,879,541
Return on average assets, excluding certain items (annualized) (1) (2)
1.10 %
1.17 %
1.32 %
1.41 %
1.60 %
1.25 %
1.40 %
Return on average equity, excluding certain items (1):
Income before provision for income taxes
$ 43,526
$ 44,295
$ 53,943
$ 52,283
$ 64,066
$ 194,049
$ 236,401
Add: provision for credit losses
4,803
6,327
3,028
3,577
3,123
17,734
(1,663)
Add: restructuring and merger-related expenses
–
641
35
3,153
11
3,830
1,723
Pre-tax, pre-provision income, excluding restructuring and merger-related expenses
48,329
51,263
57,006
59,013
67,200
215,613
236,461
Average total shareholders’ equity
$ 2,468,525
$ 2,478,662
$ 2,493,096
$ 2,458,067
$ 2,410,761
$ 2,474,627
$ 2,515,509
Return on average equity, excluding certain items (annualized) (1) (2)
7.77 %
8.21 %
9.17 %
9.74 %
11.06 %
8.71 %
9.40 %
Return on average tangible equity, excluding certain items (1):
Income before provision for income taxes
$ 43,526
$ 44,295
$ 53,943
$ 52,283
$ 64,066
$ 194,049
$ 236,401
Add: provision for credit losses
4,803
6,327
3,028
3,577
3,123
17,734
(1,663)
Add: amortization of intangibles
2,243
2,262
2,282
2,301
2,541
9,088
10,278
Add: restructuring and merger-related expenses
–
641
35
3,153
11
3,830
1,723
Income before provision, restructuring and merger-related expenses and amortization of intangibles
50,572
53,525
59,288
61,314
69,741
224,701
246,739
Average total shareholders’ equity
2,468,525
2,478,662
2,493,096
2,458,067
2,410,761
2,474,627
2,515,509
Less: average goodwill and other intangibles, net of def. tax liability
(1,125,593)
(1,127,404)
(1,129,155)
(1,131,027)
(1,132,894)
(1,128,277)
(1,136,062)
Average tangible equity
$ 1,342,932
$ 1,351,258
$ 1,363,941
$ 1,327,040
$ 1,277,867
$ 1,346,350
$ 1,379,447
Return on average tangible equity, excluding certain items (annualized) (1) (2)
14.94 %
15.72 %
17.44 %
18.74 %
21.65 %
16.69 %
17.89 %
Average tangible common equity
$ 1,198,448
$ 1,206,774
$ 1,219,457
$ 1,182,556
$ 1,133,383
$ 1,201,866
$ 1,234,963
Return on average tangible common equity, excluding certain items (annualized) (1) (2)
16.74 %
17.60 %
19.50 %
21.03 %
24.41 %
18.70 %
19.98 %
(1) Certain items excluded from the calculations consist of credit provisions, tax provisions and restructuring and merger-related expenses.
(2) The ratios are annualized by utilizing actual numbers of days in the quarter versus the year.
View original content to download multimedia:https://www.prnewswire.com/news-releases/wesbanco-announces-fourth-quarter-2023-financial-results-302042463.html
SOURCE WesBanco, Inc.
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