WesBanco Announces Third Quarter 2021 Financial Results

Published: Oct. 8, 2021 at 8:00 AM CDT|Updated: Oct. 26, 2021 at 3:32 PM CDT

WHEELING, W.Va., Oct. 26, 2021 /PRNewswire/ -- WesBanco, Inc. ("WesBanco") (Nasdaq: WSBC), a diversified, multi-state bank holding company, today announced net income and related earnings per share for the three and nine months ended September 30, 2021.  Net income available to common shareholders for the period was $41.9 million, with diluted earnings per share of $0.64, compared to $41.3 million and $0.61 per diluted share, respectively, for the third quarter of 2020.  For the nine months ended September 30, 2021, net income was $180.5 million, or $2.71 per diluted share, compared to $69.2 million, or $1.03 per diluted share, for the 2020 period.  Net income available to common shareholders, excluding after-tax restructuring and merger-related expenses, for the three months ended September 30, 2021, was $45.4 million, or $0.70 per diluted share, as compared to $44.2 million and $0.66 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, 2021 was $185.7 million, or $2.79 per diluted share, as compared to $76.5 million, or $1.14 per diluted share, in the prior year period (non-GAAP measures).

WesBanco Logo (PRNewsfoto/WesBanco, Inc.)
WesBanco Logo (PRNewsfoto/WesBanco, Inc.)



For the Three Months Ended September 30,



For the Nine Months Ended September 30,




2021


2020



2021


2020

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


Net Income


Diluted
Earnings
Per Share


Net Income


Diluted
Earnings
Per Share



Net Income


Diluted
Earnings
Per Share


Net Income


Diluted
Earnings
Per Share

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


$      45,406


$       0.70


$      44,155


$       0.66



$    185,685


$       2.79


$      76,489


$       1.14

Less: After-tax restructuring and merger-
related expenses


(3,529)


(0.06)


(2,850)


(0.05)



(5,167)


(0.08)


(7,300)


(0.11)

Net income available to common shareholders (GAAP)


$      41,877


$       0.64


$      41,305


$       0.61



$    180,518


$       2.71


$      69,189


$       1.03

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

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

  • Pre-tax, pre-provision income ("PTPP") excluding restructuring and merger-related expenses (non-GAAP measure) was $57.8 million, which included $2.6 million of settlement costs with respect to the pending resolution of a lawsuit
  • Continued expense management demonstrated by a year-to-date efficiency ratio of 57.04% (non-GAAP measure)
  • Deposit growth, excluding certificates of deposit ("CDs"), was 15.0% year-over-year, driven by growth in demand deposits
  • Improving macro-economic forecasts favorably impacted the provision for credit losses under the Current Expected Credit Losses ("CECL") methodology, which drove both the net benefit in the provision for credit losses and the reduction in allowance for credit losses during the quarter
  • Key credit quality metrics such as non-performing assets, past due loans, and net loan charge-offs, as percentages of total portfolio loans, have remained at low levels and favorable to peer bank averages, those with total assets between $10 billion and $25 billion (based upon the prior four quarters)
  • During the quarter, we purchased approximately 2.1 million shares of our common stock on the open market under existing share repurchase authorizations
  • WesBanco Bank was named, for the second consecutive year, to Newsweek magazine's ranking of America's Best Banks, recognizing those banks that best serve their customers' needs, as well as being named the Best Big Bank in the state of West Virginia
  • Our core banking software system conversion was completed on August 2, which, among other benefits, provides enhanced digital capabilities

"We are pleased with WesBanco's performance during the third quarter of 2021 as we continue to deliver solid pre-tax, pre-provision earnings and manage discretionary expenses," said Todd F. Clossin, President and Chief Executive Officer of WesBanco.  "We remain focused on ensuring a strong organization for our shareholders and will continue to appropriately return capital to them.  In addition, we continue to make strategic hires across our organization and markets to enhance our ability to leverage growth opportunities once they fully return."

Mr. Clossin added, "I remain proud of our entire organization as it has remained diligently focused on serving the financial needs of our customers and communities throughout the pandemic, the re-opening of our economies, and through the completion of our core banking software system conversion.  For the second year in a row, we have been named to Newsweek magazine's ranking of America's Best Banks which recognizes those institutions that best serve their customers' needs.  I would also like to congratulate our Community Development team for their being nationally honored with the ABA Foundation Community Commitment Award for their strong performance and outreach with our New Markets Loan Program."

Balance Sheet
Portfolio loans of $9.9 billion as of September 30, 2021 decreased 9.8% when compared to the prior year period, due primarily to forgiveness of approximately 8,140 SBA Payroll Protection Program ("SBA PPP") loans totaling $940 million and a high level of commercial real estate loan payoffs of $260 million during the third quarter of 2021.  This higher level of payoffs negatively impacted total loan growth by approximately two percentage points.  Further, when excluding SBA PPP loans, total loans decreased 4.9% year-over-year and 1.8% sequentially.  As of September 30, approximately 3,190 SBA PPP loans for $272 million remained in the loan portfolio.

Total deposits increased 10.0% year-over-year to $13.4 billion due primarily to stimulus funds previously received by our customers and increased personal savings, which more than offset a $353.3 million reduction in CDs.  Deposits, excluding CDs, increased 15.0% year-over-year, driven by a 16.5% increase in total demand deposits, which represent approximately 58% of total deposits.

Credit Quality
As of September 30, 2021, total loans past due, non-performing loans, and non-performing assets as percentages of the portfolio and total assets have remained relatively low and consistent throughout the last five quarters.  In addition, for the third quarter, we realized net loan charge-offs to average loans of three basis points, on an annualized basis.  The allowance for credit losses specific to total portfolio loans at September 30, 2021 was $136.6 million, or 1.38% of total loans; or, when excluding SBA PPP loans, 1.42% of total portfolio loans.  The improvements in the macroeconomic forecasts and certain qualitative factors resulted in a negative provision for credit losses of $1.7 million for the third quarter of 2021, and a negative provision of $50.7 million for the year-to-date period.

Net Interest Margin and Income
The net interest margin of 3.08% for the third quarter of 2021 decreased 4 basis points sequentially and 23 basis points from the third quarter of 2020, primarily due to the lower interest rate environment, and a shift to a higher level of securities as a percentage of total assets.  As a result of increased cash balances from our customers' higher personal savings creating extra liquidity, investment securities increased by $1.1 billion year-over-year and, as of September 30, 2021, represented approximately 23% of total assets.  Reflecting the continued low interest rate environment, we remain focused on controlling the costs of our various funding sources.  We have reduced all posted deposit rates, including certificates of deposit, throughout the past year, which helped to lower deposit funding costs 12 basis points year-over-year to 14 basis points for the third quarter of 2021, or 9 basis points when including non-interest bearing deposits.  Furthermore, we continued to reduce our average FHLB borrowings to $0.3 billion, down 71.3% from the prior year, which lowered the cost of these borrowings by 53 basis points year-over-year.  Accretion from acquisitions benefited the third quarter net interest margin by 10 basis points, as compared to 18 basis points in the prior year period.  Lastly, the forgiveness of existing and funding of new SBA PPP loans benefited the third quarter of 2021 net interest margin by a net 14 basis points, as compared to a net 2 basis points in the prior year period.

Net interest income decreased $5.3 million, or 4.4%, during the third quarter of 2021, as compared to the same quarter of 2020, reflecting lower loan yields due to repricing of existing loans and lower new offered rates in the current market environment, lower accretion from purchase accounting, and lower rates on new investment securities purchased, partially offset by lower interest paid on deposits and borrowings as described above.  For the nine months ended September 30, 2021, net interest income decreased $12.2 million, or 3.4%, due to the reasons discussed for the three-month period comparison.

Non-Interest Income
For the third quarter of 2021, non-interest income of $32.8 million decreased $1.9 million, or 5.4%, from the third quarter of 2020, driven primarily by lower mortgage banking income, which decreased $3.9 million, or 46.2%, from the record level recorded in the prior year period.  While residential mortgage originations of $382 million continued to be strong during the quarter, as compared to $394 million last year, the amount sold in the secondary market decreased from 75% last year to approximately 40%, as we continued efforts to keep more 1-to-4 family residential mortgages on the balance sheet.  Trust fees increased $0.9 million, or 13.4%, primarily from net organic growth during the quarter.  Electronic banking fees increased $0.6 million, or 13.5%, as we transitioned to adjusted settlement processes of a new third-party digital banking service provider.  Lastly, other income decreased $1.0 million, or 19.4%, due to lower loan swap-related income and the sale of the debit card sponsorship business earlier this year.

Non-interest income, for the nine months ended September 30, 2021, increased $6.6 million, or 6.9%.  The net gain on other real estate owned and other assets of $5.0 million was primarily due to a gain earned during the second quarter on an investment made by WesBanco's Community Development Corporation in a start-up firm more than ten years ago that was recently acquired by a public company.  In addition, mortgage banking fees decreased $0.6 million, or 3.7%, compared to the prior year period, net of year-to-date fair value loss adjustments of $1.0 million, while service charges on deposits were lower due to higher consumer deposits associated with the three rounds of stimulus to-date and lower general consumer spending, resulting in fewer eligible account fees.

Non-Interest Expense
Total operating expenses continued to be well-controlled through company-wide efforts to effectively manage discretionary costs and full-time equivalent employee counts, as demonstrated by a year-to-date efficiency ratio of 57.04%.  Excluding restructuring and merger-related expenses, non-interest expense for the three months ended September 30, 2021 increased $3.9 million, or 4.5%, to $90.2 million compared to the prior year period, primarily due to $2.6 million of settlement costs with respect to the pending resolution of a lawsuit, included within other operating expenses, and higher salary expense.  Salaries and wages increased $1.2 million, or 3.0%, due to higher incentive compensation expense of $1.8 million, reflecting increased business growth and financial performance as compared to the pandemic-impacted prior year, which more than offset lower year-over-year salary expense of approximately $0.9 million.  In addition, employee benefits for the third quarter of $10.7 million, as compared to $10.6 million last year, included an additional $1.4 million from higher employee health insurance claims offset by lower pension and deferred compensation expenses.  Equipment and software expense for the third quarter of 2021 increased $1.4 million, or 22.2%, year-over-year due to increased asset size, increased usage of digital banking services, and SBA PPP loan forgiveness.  Lastly, FDIC insurance expense decreased $0.7 million, or 37.0%, year-over-year due to improved risk factors.

On a similar basis, non-interest expense during the first nine months of 2021 increased just $0.8 million, or 0.3%, compared to the prior year period.  The primary drivers of this slight increase were higher equipment and software costs and legal settlement costs mentioned above and higher marketing expense from product advertising and brand awareness campaigns that were delayed from 2020 due to the COVID-19 pandemic.  The increases were mostly offset by lower FDIC insurance from a refund received last quarter and improved risk factors, lower salaries and wages from financial center closures during the past year, and lower amortization of intangible asset expense.

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, 2021, Tier I leverage was 10.10%, Tier I risk-based capital ratio was 14.18%, common equity Tier 1 capital ratio ("CET 1") was 12.91%, and total risk-based capital was 16.38%.

During the third quarter of 2021, WesBanco repurchased 2,138,515 shares of its outstanding common stock on the open market at a total cost of $71.3 million.  As of September 30, 2021, approximately 2.96 million shares remained for repurchase under the existing share repurchase authorization that was approved on August 26, 2021, by WesBanco's Board of Directors.

Conference Call and Webcast
WesBanco will host a conference call to discuss the Company's financial results for the third quarter of 2021 at 10:00 a.m. ET on Wednesday, October 27, 2021.  Interested parties can access the live webcast of the conference call through the Investor Relations section of the Company's website, www.wesbanco.com.  Participants can also listen to the conference call by dialing 888-347-6607, 855-669-9657 for Canadian callers, or 412-902-4290 for international callers, and asking to be joined into the WesBanco call.

A replay of the conference call will be available by dialing 877-344-7529, 855-669-9658 for Canadian callers, or 412-317-0088 for international callers, and providing the access code of 10150984.  The replay will begin at approximately 12:00 p.m. ET on October 27, and end at 12 a.m. ET on November 10.  An archive of the webcast will be available for one year on the Investor Relations section of the Company's website (www.wesbanco.com).

Forward-Looking Statements
Forward-looking statements in this report relating to WesBanco's plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  The information contained in this report should be read in conjunction with WesBanco's Form 10-K for the year ended December 31, 2020 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, 2021 and June 30, 2021, which are available at the SEC's website, www.sec.gov or at WesBanco's website, www.WesBanco.com.  Investors are cautioned that forward-looking statements, which are not historical fact, involve risks and uncertainties, including those detailed in WesBanco's most recent Annual Report on Form 10-K filed with the SEC under "Risk Factors" in Part I, Item 1A.  Such statements are subject to important factors that could cause actual results to differ materially from those contemplated by such statements, including, without limitation, the effects of changing regional and national economic conditions including the effects of the COVID-19 pandemic; changes in interest rates, spreads on earning assets and interest-bearing liabilities, and associated interest rate sensitivity; sources of liquidity available to WesBanco and its related subsidiary operations; potential future credit losses and the credit risk of commercial, real estate, and consumer loan customers and their borrowing activities; actions of the Federal Reserve Board, the Federal Deposit Insurance Corporation, the SEC, the Financial Institution Regulatory Authority, the Municipal Securities Rulemaking Board, the Securities Investors Protection Corporation, and other regulatory bodies; potential legislative and federal and state regulatory actions and reform, including, without limitation, the impact of the implementation of the Dodd-Frank Act; adverse decisions of federal and state courts; fraud, scams and schemes of third parties; cyber-security breaches; competitive conditions in the financial services industry; rapidly changing technology affecting financial services; marketability of debt instruments and corresponding impact on fair value adjustments; and/or other external developments materially impacting WesBanco's operational and financial performance.  WesBanco does not assume any duty to update forward-looking statements.

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

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
















WESBANCO, INC.












Consolidated Selected Financial Highlights











Page 5

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






























For the Three Months Ended


For the Nine Months Ended

Statement of Income

September 30,


September 30,

Interest and dividend income

2021


2020


% Change


2021


2020


% Change


Loans, including fees

$        103,206


$          116,524


(11.4)


$        318,532


$          351,095


(9.3)


Interest and dividends on securities:














Taxable

13,481


11,669


15.5


37,467


42,702


(12.3)



Tax-exempt

4,063


4,182


(2.8)


11,925


12,940


(7.8)




Total interest and dividends on securities

17,544


15,851


10.7


49,392


55,642


(11.2)


Other interest income

628


1,282


(51.0)


1,836


4,062


(54.8)

          Total interest and dividend income

121,378


133,657


(9.2)


369,760


410,799


(10.0)

Interest expense













Interest bearing demand deposits

815


1,225


(33.5)


2,859


5,970


(52.1)


Money market deposits

350


707


(50.5)


1,488


3,937


(62.2)


Savings deposits

244


303


(19.5)


769


1,523


(49.5)


Certificates of deposit

1,726


3,197


(46.0)


6,122


10,765


(43.1)




Total interest expense on deposits

3,135


5,432


(42.3)


11,238


22,195


(49.4)


Federal Home Loan Bank borrowings

1,192


5,457


(78.2)


5,387


20,982


(74.3)


Other short-term borrowings

33


304


(89.1)


192


1,454


(86.8)


Subordinated debt and junior subordinated debt

1,743


1,871


(6.8)


5,336


6,400


(16.6)




Total interest expense

6,103


13,064


(53.3)


22,153


51,031


(56.6)

Net interest income

115,275


120,593


(4.4)


347,607


359,768


(3.4)


Provision for credit losses

(1,730)


16,288


(110.6)


(50,714)


107,949


(147.0)

Net interest income after provision for credit losses

117,005


104,305


12.2


398,321


251,819


58.2

Non-interest income













Trust fees

7,289


6,426


13.4


22,069


19,580


12.7


Service charges on deposits

6,050


5,332


13.5


15,820


16,272


(2.8)


Electronic banking fees

5,427


4,780


13.5


14,853


13,100


13.4


Net securities brokerage revenue

1,965


1,725


13.9


5,318


4,787


11.1


Bank-owned life insurance

2,656


2,088


27.2


6,072


5,609


8.3


Mortgage banking income

4,563


8,488


(46.2)


16,656


17,295


(3.7)


Net securities (losses) gains

(15)


787


(101.9)


740


3,577


(79.3)


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

785


(19)


 NM


4,974


84


 NM


Other income

4,035


5,005


(19.4)


15,574


15,177


2.6




Total non-interest income

32,755


34,612


(5.4)


102,076


95,481


6.9

Non-interest expense













Salaries and wages

39,497


38,342


3.0


113,822


114,025


(0.2)


Employee benefits

10,658


10,604


0.5


30,191


31,115


(3.0)


Net occupancy

6,825


7,092


(3.8)


20,430


20,809


(1.8)


Equipment and software

7,609


6,229


22.2


21,654


17,991


20.4


Marketing

1,848


1,577


17.2


6,033


4,282


40.9


FDIC insurance

1,227


1,948


(37.0)


2,690


6,456


(58.3)


Amortization of intangible assets

2,854


3,346


(14.7)


8,622


10,085


(14.5)


Restructuring and merger-related expense

4,467


3,608


23.8


6,540


9,241


(29.2)


Other operating expenses 

19,716


17,197


14.6


54,858


52,775


3.9




Total non-interest expense

94,701


89,943


5.3


264,840


266,779


(0.7)

Income before provision for income taxes

55,059


48,974


12.4


235,557


80,521


192.5


Provision for income taxes

10,651


7,669


38.9


47,445


11,332


318.7

Net Income

44,408


41,305


7.5


188,112


69,189


171.9

Preferred stock dividends

2,531


-


100.0


7,594


-


100.0

Net income available to common shareholders

$          41,877


$            41,305


1.4


$        180,518


$            69,189


160.9































Taxable equivalent net interest income

$       116,355


$       121,705


(4.4)


$       350,777


$       363,208


(3.4)
















Per common share data












Net income per common share - basic

$               0.64


$                0.61


4.9


$               2.72


$                1.03


164.1

Net income per common share - diluted

0.64


0.61


4.9


2.71


1.03


163.1

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

0.70


0.66


6.1


2.79


1.14


144.7

Dividends declared

0.33


0.32


3.1


0.99


0.96


3.1

Book value (period end)

40.41


40.66


(0.6)


40.41


40.66


(0.6)

Tangible book value (period end) (1)

22.51


21.39


5.2


22.51


21.39


5.2

Average common shares outstanding - basic

64,931,764


67,214,759


(3.4)


66,354,750


67,268,449


(1.4)

Average common shares outstanding - diluted

65,065,848


67,269,303


(3.3)


66,510,357


67,351,857


(1.2)

Period end common shares outstanding

63,838,549


67,216,012


(5.0)


63,838,549


67,216,012


(5.0)

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 Nine Months Ended










September 30,










2021


2020


% Change


























Return on average assets





1.43

%

0.56

%

155.36

%







Return on average assets, excluding
















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



1.47


0.62


137.10








Return on average equity





8.67


3.53


145.61








Return on average equity, excluding
















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



8.92


3.90


128.72








Return on average tangible equity (1)




15.30


6.96


119.83








Return on average tangible equity, excluding
















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



15.72


7.62


106.30








Return on average tangible common equity (1)




16.78


7.09


136.67








Return on average tangible common equity, excluding















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



17.25


7.76


122.29








Yield on earning assets (2)





3.36


3.86


(12.95)








Cost of interest bearing liabilities





0.31


0.69


(55.07)








Net interest spread (2)






3.05


3.17


(3.79)








Net interest margin (2)






3.16


3.38


(6.51)








Efficiency (1) (2)






57.04


56.15


1.59








Average loans to average deposits





80.01


92.37


(13.38)








Annualized net loan charge-offs/average loans




0.01


0.08


(87.50)








Effective income tax rate





20.14


14.07


43.14






















































































For the Three Months Ended










Sept. 30,


June 30,


Mar. 31,


Dec. 31,


Sept. 30,










2021


2021


2021


2020


2020






















Return on average assets





0.97

%

1.60

%

1.72

%

1.21

%

0.98

%



Return on average assets, excluding
















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



1.06


1.62


1.74


1.22


1.05




Return on average equity





5.98


9.74


10.33


7.28


6.17




Return on average equity, excluding
















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



6.49


9.88


10.43


7.33


6.60




Return on average tangible equity (1)




10.72


17.04


18.22


13.18


11.56




Return on average tangible equity, excluding
















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



11.57


17.27


18.39


13.28


12.31




Return on average tangible common equity (1)




11.76


18.67


20.00


14.49


12.21




Return on average tangible common equity, excluding















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



12.70


18.92


20.18


14.60


13.00




Yield on earning assets (2)





3.24


3.32


3.51


3.61


3.66




Cost of interest bearing liabilities





0.25


0.31


0.37


0.45


0.53




Net interest spread (2)






2.99


3.01


3.14


3.16


3.13




Net interest margin (2)






3.08


3.12


3.27


3.31


3.31




Efficiency (1) (2)






60.52


53.97


56.71


57.06


55.23




Average loans to average deposits





75.46


79.82


85.27


89.64


90.88




Annualized net loan charge-offs and recoveries /average loans

0.03


(0.03)


0.02


0.02


(0.00)




Effective income tax rate





19.34


20.85


19.93


18.13


15.66




Trust assets, market value at period end




$   5,464,159


$      5,480,995


$      5,244,370


$      5,025,565


$      4,649,054






















(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


September 30,



December 31,

December 31, 2020

Assets




2021


2020


% Change

2020

to September 30, 2021

Cash and due from banks


$        201,505


$         215,982


(6.7)

$           184,361

9.3

Due from banks - interest bearing


919,611


544,284


69.0

721,086

27.5

Securities:











Equity securities, at fair value


13,451


12,516


7.5

13,047

3.1


Available-for-sale debt securities, at fair value


2,986,803


2,045,924


46.0

1,978,136

51.0


Held-to-maturity debt securities (fair values of $978,494; $782,401










and $768,183, respectively)


953,920


746,767


27.7

731,212

30.5



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


(257)


(461)


44.3

(326)

21.2


Net held-to-maturity debt securities


953,663


746,306


27.8

730,886

30.5



Total securities


3,953,917


2,804,746


41.0

2,722,069

45.3

Loans held for sale


32,308


134,151


(75.9)

168,378

(80.8)

Portfolio loans:










Commercial real estate


5,657,886


5,708,648


(0.9)

5,705,392

(0.8)


Commercial and industrial


1,707,214


2,507,235


(31.9)

2,407,438

(29.1)


Residential real estate 


1,655,229


1,798,019


(7.9)

1,720,961

(3.8)


Home equity


607,735


647,052


(6.1)

646,387

(6.0)


Consumer 


285,101


328,592


(13.2)

309,055

(7.8)

Total portfolio loans, net of unearned income


9,913,165


10,989,546


(9.8)

10,789,233

(8.1)

Allowance for credit losses - loans 


(136,605)


(185,109)


26.2

(185,827)

26.5



Net portfolio loans


9,776,560


10,804,437


(9.5)

10,603,406

(7.8)

Premises and equipment, net


232,134


248,491


(6.6)

249,421

(6.9)

Accrued interest receivable


61,895


65,023


(4.8)

66,790

(7.3)

Goodwill and other intangible assets, net


1,154,468


1,165,566


(1.0)

1,163,091

(0.7)

Bank-owned life insurance


349,735


304,288


14.9

306,038

14.3

Other assets


209,978


265,172


(20.8)

240,970

(12.9)

Total Assets


$  16,892,111


$    16,552,140


2.1

$       16,425,610

2.8













Liabilities










Deposits:











Non-interest bearing demand


$     4,531,958


$       4,073,305


11.3

$          4,070,835

11.3


Interest bearing demand


3,283,444


2,633,601


24.7

2,839,536

15.6


Money market


1,765,480


1,619,410


9.0

1,685,927

4.7


Savings deposits


2,488,180


2,167,597


14.8

2,214,565

12.4


Certificates of deposit


1,354,252


1,707,512


(20.7)

1,618,510

(16.3)



Total deposits


13,423,314


12,201,425


10.0

12,429,373

8.0

Federal Home Loan Bank borrowings


208,940


794,621


(73.7)

549,003

(61.9)

Other short-term borrowings


152,546


381,909


(60.1)

241,950

(37.0)

Subordinated debt and junior subordinated debt 


167,711


192,150


(12.7)

192,291

(12.8)



Total borrowings


529,197


1,368,680


(61.3)

983,244

(46.2)

Accrued interest payable


2,495


5,014


(50.2)

4,314

(42.2)

Other liabilities


213,122


244,055


(12.7)

251,942

(15.4)

Total Liabilities


14,168,128


13,819,174


2.5

13,668,873

3.7













Shareholders' Equity









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










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










liquidation preference $150.0 million, issued and outstanding in 2021 and 2020, respectively

144,484


144,529


(0.0)

144,484

-

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










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










issued, respectively; 63,838,549, 67,216,012 and 67,254,706 shares


141,834


141,834


-

141,834

-


outstanding, respectively









Capital surplus


1,634,086


1,634,172


(0.0)

1,634,815

(0.0)

Retained earnings


946,746


802,892


17.9

831,688

13.8

Treasury stock (4,242,757, 865,294 and 826,600 shares - at cost, respectively)


(146,102)


(27,403)


(433.2)

(25,949)

(463.0)

Accumulated other comprehensive income


4,463


38,301


(88.3)

31,359

(85.8)

Deferred benefits for directors


(1,528)


(1,359)


(12.4)

(1,494)

(2.3)

Total Shareholders' Equity


2,723,983


2,732,966


(0.3)

2,756,737

(1.2)

Total Liabilities and Shareholders' Equity


$  16,892,111


$     16,552,140


2.1

$        16,425,610

2.8






















WESBANCO, INC.






Consolidated Selected Financial Highlights





Page 8

(unaudited, dollars in thousands, except shares)






Balance sheet


September 30,


June 30,


Assets




2021


2021

% Change

Cash and due from banks


$      201,505


$      208,992

(3.6)

Due from banks - interest bearing


919,611


637,312

44.3

Securities:








Equity securities, at fair value


13,451


13,494

(0.3)


Available-for-sale, at fair value


2,986,803


2,964,264

0.8


Held-to-maturity (fair values of $978,494 and 934,487, respectively)


953,920


902,172

5.7



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


(257)


(227)

(13.2)


Net held-to-maturity debt securities


953,663


901,945

5.7



Total securities


3,953,917


3,879,703

1.9

Loans held for sale


32,308


41,461

(22.1)

Portfolio Loans:







Commercial real estate


5,657,886


5,705,246

(0.8)


Commercial and industrial


1,707,214


2,119,186

(19.4)


Residential real estate 


1,655,229


1,625,632

1.8


Home equity


607,735


631,059

(3.7)


Consumer 


285,101


276,069

3.3

Total portfolio loans, net of unearned income


9,913,165


10,357,192

(4.3)

Allowance for credit losses - loans


(136,605)


(140,730)

2.9


Net portfolio loans


9,776,560


10,216,462

(4.3)

Premises and equipment, net


232,134


235,227

(1.3)

Accrued interest receivable


61,895


64,020

(3.3)

Goodwill and other intangible assets, net


1,154,468


1,157,322

(0.2)

Bank-owned life insurance


349,735


309,454

13.0

Other assets


209,978


216,914

(3.2)

Total Assets


$ 16,892,111


$   16,966,867

(0.4)










Liabilities







Deposits:








Non-interest bearing demand


4,531,958


4,409,221

2.8


Interest bearing demand


3,283,444


3,214,484

2.1


Money market


1,765,480


1,771,686

(0.4)


Savings deposits


2,488,180


2,438,328

2.0


Certificates of deposit


1,354,252


1,484,536

(8.8)



Total deposits


13,423,314


13,318,255

0.8

Federal Home Loan Bank borrowings


208,940


313,960

(33.5)

Other short-term borrowings


152,546


135,267

12.8

Subordinated debt and junior subordinated debt 


167,711


192,571

(12.9)



Total borrowings


529,197


641,798

(17.5)

Accrued interest payable


2,495


3,342

(25.3)

Other liabilities


213,122


222,636

(4.3)

Total liabilities


14,168,128


14,186,031

(0.1)










Shareholders' Equity






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







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







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







and June 30, 2021, respectively


144,484


144,484

-

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







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







63,838,549 and 65,970,149 shares outstanding, respectively


141,834


141,834

-

Capital surplus


1,634,086


1,632,460

0.1

Retained earnings


946,746


925,977

2.2

Treasury stock (4,242,757 and 2,111,157 shares - at cost)


(146,102)


(74,996)

(94.8)

Accumulated other comprehensive income 


4,463


12,586

(64.5)

Deferred benefits for directors


(1,528)


(1,509)

(1.3)

Total Shareholders' Equity


2,723,983


2,780,836

(2.0)

Total Liabilities and Shareholders' Equity


$ 16,892,111


$   16,966,867

(0.4)



















WESBANCO, INC.






















Consolidated Selected Financial Highlights
















Page 9



(unaudited, dollars in thousands)





















Average balance sheet and





















net interest margin analysis




For the Three Months Ended September 30,




For the Nine Months Ended September 30,










2021

2020



2021

2020









Average

Average



Average

Average



Average

Average



Average

Average




Assets





Balance

Rate



Balance

Rate



Balance

Rate



Balance

Rate




Due from banks - interest bearing




$        936,084

0.16

%


$          755,575

0.16

%


$        803,713

0.12

%


$          509,928

0.25

%



Loans, net of unearned income (1)




10,164,279

4.03



11,107,106

4.17



10,562,879

4.03



10,813,737

4.34




Securities: (2)






















    Taxable





3,210,878

1.67



2,121,780

2.19



2,856,041

1.75



2,328,196

2.45




    Tax-exempt (3)





650,397

3.14



603,835

3.49



610,449

3.31



624,278

3.50




        Total securities





3,861,275

1.91



2,725,615

2.47



3,466,490

2.03



2,952,474

2.67




Other earning assets





23,646

4.23



56,575

6.88



28,494

5.11



65,849

6.27




         Total earning assets (3)




14,985,284

3.24

%


14,644,871

3.66

%


14,861,576

3.36

%


14,341,988

3.86

%



Other assets





2,072,509




2,074,846




2,060,312




2,065,777





Total Assets





$  17,057,793




$     16,719,717




$  16,921,888




$     16,407,765



























Liabilities and Shareholders' Equity




















Interest bearing demand deposits




$     3,297,702

0.10

%


$       2,654,161

0.18

%


$     3,139,992

0.12

%


$       2,518,952

0.32

%



Money market accounts




1,791,494

0.08



1,623,969

0.17



1,764,462

0.11



1,590,498

0.33




Savings deposits





2,471,593

0.04



2,140,932

0.06



2,393,066

0.04



2,051,930

0.10




Certificates of deposit





1,403,812

0.49



1,761,087

0.72



1,501,857

0.54



1,865,439

0.77




    Total interest bearing deposits




8,964,601

0.14



8,180,149

0.26



8,799,377

0.17



8,026,819

0.37




Federal Home Loan Bank borrowings



289,334

1.63



1,006,593

2.16



388,518

1.85



1,285,266

2.18




Other borrowings





136,028

0.10



383,771

0.32



152,450

0.17



361,949

0.54




Subordinated debt and junior subordinated debt

188,276

3.67



192,093

3.87



191,018

3.73



194,195

4.40




      Total interest bearing liabilities (4)



9,578,239

0.25

%


9,762,606

0.53

%


9,531,363

0.31

%


9,868,229

0.69

%



Non-interest bearing demand deposits



4,504,332




4,041,681




4,402,487




3,679,743





Other liabilities





197,916




252,917




205,309




239,797





Shareholders' equity





2,777,306




2,662,513




2,782,729




2,619,996





Total Liabilities and Shareholders' Equity



$  17,057,793




$     16,719,717




$  16,921,888




$     16,407,765





Taxable equivalent net interest spread




2.99

%



3.13

%



3.05

%



3.17

%



Taxable equivalent net interest margin




3.08

%



3.31

%



3.16

%



3.38

%















































(1) Gross of allowance for loan losses and net of unearned income,  Includes non-accrual and loans held for sale.  Loan fees included in interest income on loans were $6.8 million and $6.2 million for the three months ended September 30, 2021 and 2020, respectively and were $21.5 million and $9.5 million for the nine months ended September 30, 2021 and 2020, respectively.  As part of loan fees, PPP loan fees were $7.1 million and $5.6 million for the three months ended September 30, 2021 and 2020, respectively, and were $21.0 million and $7.7 million for the nine months ended September 30, 2021 and 2020, respectively.  Additionally, loan accretion included in interest income on loans acquired from prior acquisitions was $3.0 million and $4.2 million for the three months ended September 30, 2021 and 2020, respectively, and was $10.3 million and $12.5 million for the nine months ended September 30, 2021 and 2020, respectively. 



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



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



(4) Accretion on interest bearing liabilities acquired from prior acquisitions was $0.7 million and $2.1 million for the three months ended September 30, 2021 and 2020, respectively, and was $2.6 million and $8.1 million for the nine months ended September 30, 2021 and 2020, respectively.





WESBANCO, INC.










Consolidated Selected Financial Highlights









 Page 10

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













Quarter Ended

Statement of Income

Sept. 30,


June 30,


Mar. 31,


Dec. 31,


Sept. 30,

Interest and dividend income

2021


2021


2021


2020


2020


Loans, including fees

$        103,206


$          105,968


$          109,358


$          114,582


$          116,524


Interest and dividends on securities:












Taxable

13,481


12,900


11,127


10,892


11,669



Tax-exempt

4,063


3,952


3,910


4,059


4,182




Total interest and dividends on securities

17,544


16,852


15,037


14,951


15,851


Other interest income

628


507


659


945


1,282

          Total interest and dividend income

121,378


123,327


125,054


130,478


133,657

Interest expense











Interest bearing demand deposits

815


1,009


1,043


1,099


1,225


Money market deposits

350


551


578


678


707


Savings deposits

244


261


264


280


303


Certificates of deposit

1,726


2,026


2,370


2,797


3,197




Total interest expense on deposits

3,135


3,847


4,255


4,854


5,432


Federal Home Loan Bank borrowings

1,192


1,781


2,414


3,719


5,457


Other short-term borrowings

33


40


118


275


304


Subordinated debt and junior subordinated debt

1,743


1,804


1,789


1,918


1,871




Total interest expense

6,103


7,472


8,576


10,766


13,064

Net interest income

115,275


115,855


116,478


119,712


120,593


Provision for credit losses

(1,730)


(21,025)


(27,958)


(209)


16,288

Net interest income after provision for credit losses

117,005


136,880


144,436


119,921


104,305

Non-interest income











Trust fees

7,289


7,148


7,631


6,754


6,426


Service charges on deposits

6,050


4,876


4,894


5,671


5,332


Electronic banking fees

5,427


5,060


4,365


4,424


4,780


Net securities brokerage revenue

1,965


1,829


1,524


1,402


1,725


Bank-owned life insurance

2,656


1,707


1,709


1,750


2,088


Mortgage banking income

4,563


7,830


4,264


5,442


8,488


Net securities (losses) gains

(15)


477


279


691


787


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

785


4,014


175


18


(19)


Other income

4,035


3,171


8,367


6,553


5,005




Total non-interest income

32,755


36,112


33,208


32,705


34,612

Non-interest expense











Salaries and wages

39,497


37,435


36,890


39,140


38,342


Employee benefits

10,658


9,268


10,266


10,608


10,604


Net occupancy

6,825


6,427


7,177


6,771


7,092


Equipment and software

7,609


7,281


6,765


6,810


6,229


Marketing

1,848


1,802


2,384


1,675


1,577


FDIC insurance

1,227


181


1,282


1,278


1,948


Amortization of intangible assets

2,854


2,873


2,896


3,327


3,346


Restructuring and merger-related expense

4,467


1,222


851


484


3,608


Other operating expenses 

19,716


17,323


17,816


17,976


17,198




Total non-interest expense

94,701


83,812


86,327


88,069


89,943

Income before provision for income taxes

55,059


89,180


91,317


64,557


48,974


Provision for income taxes

10,651


18,592


18,202


11,703


7,669

Net Income

44,408


70,588


73,115


52,854


41,305

Preferred stock dividends

2,531


2,531


2,531


2,644


-

Net income available to common shareholders

$          41,877


$            68,057


$            70,584


$            50,210


$            41,305














Taxable equivalent net interest income

$       116,355


$          116,906


$       117,517


$       120,790


$       121,705














Per common share data










Net income per common share - basic

$               0.64


$                1.02


$                1.05


$                0.75


$                0.61

Net income per common share - diluted

0.64


1.01


1.05


0.75


0.61

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

0.70


1.03


1.06


0.76


0.66

Dividends declared

0.33


0.33


0.33


0.32


0.32

Book value (period end)

40.41


39.96


39.25


38.84


38.51

Tangible book value (period end) (1)

22.51


22.61


22.21


21.75


21.39

Average common shares outstanding - basic

64,931,764


66,894,398


67,263,714


67,238,005


67,214,759

Average common shares outstanding - diluted

65,065,848


67,066,592


67,335,418


67,304,442


67,269,303

Period end common shares outstanding

63,838,549


65,970,149


67,282,134


67,254,706


67,216,012

Period end preferred shares outstanding

150,000


150,000


150,000


150,000


150,000

Full time equivalent employees

2,425


2,459


2,490


2,612


2,618














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





(2) Certain items excluded from the calculation consist of after-tax restructuring and merger-related expenses.
































WESBANCO, INC.












Consolidated Selected Financial Highlights










 Page 11

(unaudited, dollars in thousands)
















Quarter Ended






Sept. 30,


June 30,


Mar. 31,


Dec. 31,


Sept. 30,


Asset quality data


2021


2021


2021


2020


2020


Non-performing assets:













Troubled debt restructurings - accruing

$         3,707


$           5,799


$           3,563


$           3,927


$           4,191



Non-accrual loans:














Troubled debt restructurings


1,615


1,664


1,768


1,828


1,818




Other non-accrual loans


34,644


34,548


32,807


35,052


35,448




    Total non-accrual loans


36,259


36,212


34,575


36,880


37,266




    Total non-performing loans


39,966


42,011


38,138


40,807


41,457



Other real estate and repossessed assets

293


773


393


549


738




Total non-performing assets


$       40,259


$         42,784


$         38,531


$         41,356


$         42,195
















Past due loans (1):













Loans past due 30-89 days


$       32,682


$         21,233


$         20,602


$         31,596


$         17,338



Loans past due 90 days or more


11,252


8,318


12,824


8,846


10,170




Total past due loans


$       43,934


$         29,551


$         33,426


$         40,442


$         27,508
















Criticized and classified loans (2):













Criticized loans


$    290,281


$       319,448


$       340,943


$       362,295


$       248,264



Classified loans


127,022


136,927


114,884


132,650


108,594




Total criticized and classified loans

$    417,303


$       456,375


$       455,827


$       494,945


$       356,858
















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

0.33

%

0.21

%

0.19

%

0.29

%

0.16

%

Loans past due 90 days or more / total portfolio loans

0.11


0.08


0.12


0.08


0.09


Non-performing loans / total portfolio loans

0.40


0.41


0.36


0.38


0.38


Non-performing assets / total portfolio loans, other












real estate and repossessed assets


0.41


0.41


0.36


0.38


0.38


Non-performing assets / total assets


0.24


0.25


0.23


0.25


0.26


Criticized and classified loans / total portfolio loans

4.21


4.41


4.26


4.59


3.25
















Allowance for credit losses












Allowance for credit losses - loans


$    136,605


$       140,730


$       160,040


$       185,827


$       185,109


Allowance for credit losses - loan commitments

7,290


5,766


6,731


9,514


10,829


Provision for credit losses


(1,730)


(21,025)


(27,958)


(209)


16,288


Net loan and deposit account overdraft charge-offs and recoveries

842


(689)


648


524


(133)
















Annualized net loan charge-offs and recoveries / average loans

0.03

%

(0.03)

%

0.02

%

0.02

%

(0.00)

%

Allowance for credit losses - loans / total portfolio loans

1.38

%

1.36

%

1.50

%

1.72

%

1.68

%

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

1.42

%

1.43

%

1.62

%

1.85

%

1.83

%

Allowance for credit losses - loans / non-performing loans

3.42

x

3.35

x

4.20

x

4.55

x

4.47

x

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












loans past due


1.63

x

1.97

x

2.24

x

2.29

x

2.68

x















































Sept. 30,


June 30,


Mar. 31,


Dec. 31,


Sept. 30,






2021


2021


2021


2020


2020


Capital ratios












Tier I leverage capital


10.10

%

10.42

%

10.74

%

10.51

%

10.18

%

Tier I risk-based capital


14.18


15.15


14.95


14.72


14.29


Total risk-based capital


16.38


17.68


17.58


17.58


17.18


Common equity tier 1 capital ratio (CET 1)

12.91


13.83


13.65


13.40


12.99


Average shareholders' equity to average assets

16.28


16.44


16.65


16.59


15.92


Tangible equity to tangible assets (4)


10.04


10.34


10.30


10.52


10.27


Tangible common equity to tangible assets (4)

9.12


9.43


9.39


9.58


9.33






























(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 $272.1 million of PPP loans as of September 30, 2021.










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






















WESBANCO, INC.














Non-GAAP Financial Measures












Page 12

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





Three Months Ended


Year to Date 





Sept. 30,


June 30,


Mar. 31,


Dec. 31,


Sept. 30,


Sept. 30,

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

2021


2021


2021


2020


2020


2021

2020

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














Net income available to common shareholders

$     41,877


$     68,057


$    70,584


$   50,210


$     41,305


$        180,518

$ 69,189


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

3,529


965


672


383


2,850


5,167

7,300


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

45,406


69,022


71,256


50,593


44,155


185,685

76,489


















Average total assets


$17,057,793


$   17,042,147


$   16,636,258


$   16,546,761


$   16,719,717


$ 16,921,888

$  16,407,765

















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

1.06%


1.62%


1.74%


1.22%


1.05%


1.47%

0.62%

















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














Net income available to common shareholders

$ 41,877


$    68,057


$   70,584


$          50,210


$       41,305


$     180,518

$      69,189


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

3,529


965


672


383


2,850


5,167

7,300


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

45,406


69,022


71,256


50,593


44,155


185,685

76,489


















Average total shareholders' equity

$  2,777,306


$  2,801,455


$   2,770,416


$   2,744,936


$ 2,662,513


$ 2,782,729

$  2,619,996

















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

6.49%


9.88%


10.43%


7.33%


6.60%


8.92%

3.90%

















Return on average tangible equity:














Net income available to common shareholders

$     41,877


$      68,057


$    70,584


$    50,210


$      41,305


$     180,518

$      69,189


Plus: amortization of intangibles (1)

2,255


2,270


2,288


2,628


2,643


6,811

7,967


Net income available to common shareholders before amortization of intangibles 

44,132


70,327


72,872


52,838


43,948


187,329

77,156


















Average total shareholders' equity

2,777,306


2,801,455


2,770,416


2,744,936


2,662,513


2,782,729

2,619,996


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

(1,143,522)


(1,145,882)


(1,148,171)


(1,150,184)


(1,150,549)


(1,145,841)

(1,138,621)


Average tangible equity

$ 1,633,784


$    1,655,573


$    1,622,245


$   1,594,752


$    1,511,964


$    1,636,888

$   1,481,375

















Return on average tangible equity (annualized)  (2)

10.72%


17.04%


18.22%


13.18%


11.56%


15.30%

6.96%


















Average tangible common equity

$  1,489,300


$   1,511,089


$   1,477,736


$   1,450,243


$  1,431,657


$    1,492,404

$   1,454,411

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

11.76%


18.67%


20.00%


14.49%


12.21%


16.78%

7.09%

















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














Net income available to common shareholders

$    41,877


$      68,057


$     70,584


$     50,210


$      41,305


$   180,518

$   69,189


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

3,529


965


672


383


2,850


5,167

7,300


Plus: amortization of intangibles  (1)

2,255


2,270


2,288


2,628


2,643


6,811

7,967


Net income available to common shareholders before amortization of intangibles 














     and excluding after-tax restructuring and merger-related expenses

47,661


71,292


73,544


53,221


46,798


192,496

84,456


















Average total shareholders' equity

2,777,306


2,801,455


2,770,416


2,744,936


2,662,513


2,782,729

2,619,996


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

(1,143,522)


(1,145,882)


(1,148,171)


(1,150,184)


(1,150,549)


(1,145,841)

(1,138,621)


Average tangible equity

$  1,633,784


$     1,655,573


$     1,622,245


$     1,594,752


$   1,511,964


$   1,636,888

$   1,481,375

















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

11.57%


17.27%


18.39%


13.28%


12.31%


15.72%

7.62%


















Average tangible common equity

$  1,489,300


$     1,511,089


$     1,477,736


$   1,450,243


$  1,431,657


$   1,492,404

$    1,454,411

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

12.70%


18.92%


20.18%


14.60%


13.00%


17.25%

7.76%

















Efficiency ratio:
















Non-interest expense


$     94,701


$     83,812


$      86,327


$     88,069


$     89,943


$     264,840

$    266,779


Less: restructuring and merger-related expense

(4,467)


(1,222)


(851)


(484)


(3,608)


(6,540)

(9,241)


Non-interest expense excluding restructuring and merger-related expense

90,234


82,590


85,476


87,585


86,335


258,300

257,538


















Net interest income on a fully taxable equivalent basis

116,355


116,906


117,517


120,790


121,705


350,777

363,208


Non-interest income


32,755


36,112


33,208


32,705


34,612


102,076

95,481


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

$   149,110


$    153,018


$ 150,725


$  153,495


$     156,317


$    452,853

$    458,689


Efficiency ratio


60.52%


53.97%


56.71%


57.06%


55.23%


57.04%

56.15%

































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














Net income available to common shareholders

$   41,877


$     68,057


$      70,584


$     50,210


$      41,305


$     180,518

$   69,189


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

3,529


965


672


383


2,850


5,167

7,300

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

$    45,406


$     69,022


$    71,256


$     50,593


$     44,155


$     185,685

$     76,489

































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














Net income per common share - diluted

$         0.64


$      1.01


$     1.05


$          0.75


$        0.61


$           2.71

$       1.03


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

0.06


0.02


0.01


0.01


0.05


0.08

0.11

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

$     0.70


$          1.03


$       1.06


$         0.76


$      0.66


$           2.79

$        1.14





































Period End








Sept. 30,


June 30,


Mar. 31,


Dec. 31, 


Sept. 30,








2021


2021


2021


2020


2020




Tangible book value per share:














Total shareholders' equity

$2,723,983


$    2,780,836


$   2,785,522


$   2,756,737


$    2,732,966





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

(1,142,350)


(1,144,604)


(1,146,874)


(1,149,161)


(1,150,939)





Less: preferred shareholder's equity

(144,484)


(144,484)


(144,484)


(144,484)


(144,529)





Tangible common equity

1,437,149


1,491,748


1,494,164


1,463,092


1,437,498





















Common shares outstanding

63,838,549


65,970,149


67,282,134


67,254,706


67,216,012




















Tangible book value per share

$     22.51


$     22.61


$       22.21


$       21.75


$        21.39




















Tangible common equity to tangible assets:














Total shareholders' equity

$  2,723,983


$   2,780,836


$    2,785,522


$    2,756,737


$    2,732,966





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

(1,142,350)


(1,144,604)


(1,146,874)


(1,149,161)


(1,150,939)





Tangible equity


1,581,633


1,636,232


1,638,648


1,607,576


1,582,027





Less: preferred shareholder's equity

(144,484)


(144,484)


(144,484)


(144,484)


(144,529)





Tangible common equity

1,437,149


1,491,748


1,494,164


1,463,092


1,437,498





















Total assets


16,892,111


16,966,867


17,057,788


16,425,610


16,552,140





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

(1,142,350)


(1,144,604)


(1,146,874)


(1,149,161)


(1,150,939)





Tangible assets


$15,749,761


$  15,822,263


$  15,910,914


$  15,276,449


$  15,401,201




















Tangible equity to tangible assets

10.04%


10.34%


10.30%


10.52%


10.27%




















Tangible common equity to tangible assets

9.12%


9.43%


9.39%


9.58%


9.33%




































(1) Tax effected at 21% for all periods presented.













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





























WESBANCO, INC.














Additional Non-GAAP Financial Measures












Page 13

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





















Three Months Ended


Year to Date 





Sept. 30,


June 30,


Mar. 31,


Dec. 31,


Sept. 30,


Sept. 30,

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

2021


2021


2021


2020


2020


2021

2020

Pre-tax, pre-provision income:














Income before provision for income taxes

$      55,059


$      89,180


$      91,317


$      64,557


$      48,974


$   235,557

$      80,521


Add: provision for credit losses

(1,730)


(21,025)


(27,958)


(209)


16,288


(50,714)

107,949

Pre-tax, pre-provision income


$    53,329


$    68,155


$    63,359


$     64,348


$    65,262


$184,843

$   188,470

















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














Income before provision for income taxes

$   55,059


$     89,180


$   91,317


$     64,557


$       48,974


$     235,557

$      80,521


Add: provision for credit losses

(1,730)


(21,025)


(27,958)


(209)


16,288


(50,714)

107,949


Add: restructuring and merger-related expenses

4,467


1,222


851


484


3,608


6,540

9,241

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

$     57,796


$   69,377


$     64,210


$      64,832


$      68,870


$   191,383

$    197,711

















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














Income before provision for income taxes

$   55,059


$      89,180


$     91,317


$   64,557


$     48,974


$   235,557

$     80,521


Add: provision for credit losses

(1,730)


(21,025)


(27,958)


(209)


16,288


(50,714)

107,949


Add: restructuring and merger-related expenses

4,467


1,222


851


484


3,608


6,540

9,241

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

57,796


69,377


64,210


64,832


68,870


191,383

197,711


















Average total assets


$17,057,793


$  17,042,147


$   16,636,258


$  16,546,761


$   16,719,717


$16,921,888

$   16,407,765

















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

1.34%


1.63%


1.57%


1.56%


1.64%


1.51%

1.61%

















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














Income before provision for income taxes

$     55,059


$       89,180


$       91,317


$      64,557


$       48,974


$    235,557

$      80,521


Add: provision for credit losses

(1,730)


(21,025)


(27,958)


(209)


16,288


(50,714)

107,949


Add: restructuring and merger-related expenses

4,467


1,222


851


484


3,608


6,540

9,241

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

57,796


69,377


64,210


64,832


68,870


191,383

197,711


















Average total shareholders' equity

$  2,777,306


$     2,801,455


$     2,770,416


$     2,744,936


$     2,662,513


$ 2,782,729

$     2,619,996

















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

8.26%


9.93%


9.40%


9.40%


10.29%


9.20%

10.08%

















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














Income before provision for income taxes

$   55,059


$    89,180


$     91,317


$     64,557


$       48,974


$   235,557

$      80,521


Add: provision for credit losses

(1,730)


(21,025)


(27,958)


(209)


16,288


(50,714)

107,949


Add: amortization of intangibles

2,854


2,873


2,896


3,327


3,346


8,622

10,085


Add: restructuring and merger-related expenses

4,467


1,222


851


484


3,608


6,540

9,241

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

60,650


72,250


67,106


68,159


72,216


200,005

207,796


















Average total shareholders' equity

2,777,306


2,801,455


2,770,416


2,744,936


2,662,513


2,782,729

2,619,996


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

(1,143,522)


(1,145,882)


(1,148,171)


(1,150,184)


(1,150,549)


(1,145,841)

(1,138,621)


Average tangible equity

$  1,633,784


$     1,655,573


$     1,622,245


$     1,594,752


$     1,511,964


$ 1,636,888

$    1,481,375

















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

14.73%


17.50%


16.78%


17.00%


19.00%


16.34%

18.74%


















Average tangible common equity

$  1,489,300


$     1,511,089


$     1,477,736


$     1,450,243


$     1,431,657


$ 1,492,404

$     1,454,411

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

16.16%


19.18%


18.42%


18.70%


20.07%


17.92%

19.08%

















































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








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





























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