WesBanco Announces Third Quarter 2020 Financial Results

WHEELING, W.Va., Oct. 21, 2020 /PRNewswire/ -- WesBanco, Inc. ("WesBanco") (Nasdaq: WSBC), a diversified, multi-state bank holding company, today announced net income and related earnings per share for the three and nine months ended September 30, 2020.  Reflecting the impact from the 2020 adoption of the new Current Expected Credit Losses ("CECL") accounting standard, net income for the three months ended September 30, 2020 was $41.3 million, with diluted earnings per share of $0.61, compared to $37.3 million and $0.68 per diluted share, respectively, for the third quarter of 2019.  For the nine months ended September 30, 2020, net income was $69.2 million, or $1.03 per diluted share, compared to $122.5 million, or $2.24 per diluted share, for the 2019 period.  Net income excluding after-tax restructuring and merger-related expenses for the three months ended September 30, 2020, was $44.2 million, or $0.66 per diluted share, as compared to $38.7 million and $0.71 per diluted share, respectively, in the prior year quarter (non-GAAP measures).  On the same basis, net income for the nine months ended September 30, 2020 was $76.5 million, or $1.14 per diluted share, as compared to $2.31 per diluted share in the prior year period (non-GAAP measures).

			For the Three Months Ended September 30,								For the Nine Months Ended September 30,
			2020				2019				2020				2019
(unaudited, dollars in thousands, except per share amounts)			Net Income		Diluted Earnings Per Share		Net Income		Diluted Earnings Per Share		Net Income		Diluted Earnings Per Share		Net Income		Diluted Earnings Per Share
Net income (Non-GAAP)(1)			$      44,155		$       0.66		$      38,681		$       0.71		$      76,489		$       1.14		$    126,349		$       2.31
Less: After tax restructuring and merger- related expenses(2)			(2,850)		(0.05)		(1,334)		(0.03)		(7,300)		(0.11)		(3,852)		(0.07)
Net income (GAAP)			$      41,305		$       0.61		$      37,347		$       0.68		$      69,189		$       1.03		$    122,497		$       2.24
(1)See non-GAAP financial measures for additional information relating to the calculation of these items.
(2)For the third quarter of 2020, after tax merger-related expenses totaled $0.5 million, and after tax restructuring expenses from financial center optimization totaled $2.3 million.

On November 22, 2019, WesBanco consummated the merger with Old Line Bancshares, Inc. ("OLBK"), a bank holding company headquartered in Bowie, MD with approximately $3.0 billion in assets, excluding goodwill.  Financial results for OLBK have been included in WesBanco's results from the merger consummation date.

WesBanco believes that pre-tax, pre-provision income (non-GAAP measure) provides a more comparable year-over-year measure as it removes the impact of the new CECL accounting standard implemented earlier this year.  For the three months ended September 30, 2020, pre-tax, pre-provision income, excluding merger-related expenses, increased 33.8% year-over-year to $68.9 million compared to $51.5 million.  On the same basis, pre-tax, pre-provision income, for the nine months ended September 30, 2020, increased 20.5% year-over-year to $197.7 million compared to $164.0 million.  In addition, on the same basis, the return on average assets was 1.64% for the three month period and 1.61% for the nine month period.  WesBanco believes that these non-GAAP financial measures are useful to investors as they enhance investors' understanding of the company's business and performance.

Financial and operational highlights during the quarter ended September 30, 2020:

• WesBanco is a well-capitalized financial institution with solid liquidity and a strong balance sheet
• Capital was enhanced with the issuance of $150 million of non-cumulative perpetual preferred stock
• Organic loan growth was 10.0% year-over-year, driven by WesBanco's support of small businesses impacted by the pandemic, as well as the commercial real estate loan category
• Commercial real estate loans increased organically 4.9% year-over-year due to new loan production, funding of construction loans originated during 2019, and lower payoffs compared to last year
• Funding of nearly 7,200 loans totaling approximately $853.1 million through the Small Business Administration's Payroll Protection Program ("SBA PPP"), as established by the CARES Act
• Pandemic-related loan deferrals have continued to decline and, as of October 16, represent 4.9% of total loans
• Organic deposit growth, excluding certificates of deposit, was 12.9% year-over-year, driven by growth in demand deposits
• Mortgage banking income increased 228.0% year-over-year to a record $8.5 million due to strong originations and organic growth in the current low interest rate environment
• Continued expense management demonstrated by a year-to-date efficiency ratio of 56.15% (non-GAAP measure)
• On August 27, 2020, WesBanco Bank announced the acceleration of its financial center optimization strategy that will consolidate 25 locations by early 2021, with expected gross cost savings of approximately $6.0 to $6.5 million
• Key credit quality metrics such as non-performing assets, past due loans, and net loan charge-offs, as percentages of total portfolio loans, have remained at low levels and favorable to peer bank averages, those with total assets between $10 billion and $25 billion, for the four quarters prior to the current earnings period

"We are pleased with WesBanco's performance during the third quarter as we exhibited strong fee income growth and disciplined expense management to deliver growth of 33.8% year-over-year and 3.0% quarter-over-quarter in our pre-tax, pre-provision income," said Todd F. Clossin, President and Chief Executive Officer of WesBanco.  "WesBanco is a well-capitalized institution with peer-leading reserve levels combined with diversified growth engines and diligent expense management.  We remain focused on the long-term success of our company for our shareholders, customers, and communities."

Mr. Clossin added, "I continue to be extremely proud of our employees as they have gone above and beyond to serve our customers and communities during the last six months.  In addition to our company donating more than a half million dollars for pandemic-related efforts, our employees continue to provide their time and efforts supporting local charitable organizations.  They have assisted more than 7,200 businesses secure Payroll Protection Program loans from the Small Business Administration.  Furthermore, they helped nearly 2,300 small business and commercial, 550 residential mortgage, 490 consumer loan, and 230 home equity loan customers during the early stages of the pandemic with primarily 90-day loan deferrals.  Our customers have been very grateful for our efforts that allowed them to worry about one less thing during this unprecedented time.  These actions speak loudly to our community bank roots."

Financial Center Optimization Strategy
WesBanco annually reviews the needs of the communities it serves, as well as the performance of its financial centers, to identify necessary improvement plans.  Based in part on customer migration to digital channels, community transition, and capital deployment, it has closed 15 locations during the last three years.  Reflecting the current operating environment and increased utilization of digital services, WesBanco announced, on August 27, 2020, a plan to accelerate its financial center optimization strategy.  Through this plan, WesBanco will consolidate a total of 25 existing locations and convert two others to drive-up only locations across Indiana, Kentucky, Ohio, Pennsylvania, and West Virginia.  One location closed during the last week of September, two others are slated for closure during the fourth quarter of 2020, and the remainder will close on or about January 22, 2021.  Cost savings of approximately $6.0 to $6.5 million are expected to be phased-in during the first half of 2021.  During the next few quarters, including the third quarter of 2020, WesBanco anticipates incurring total charges of approximately $3.5 to $4.0 million due to the disposition of assets, lease terminations, severance, and other costs associated with the closures, of which $3.0 million was incurred during the third quarter of 2020.  Importantly, staff at the locations being consolidated will be given the opportunity to fill certain open positions at other nearby financial centers.

Balance Sheet
Portfolio loans of $11.0 billion as of September 30, 2020 increased 41.7% when compared to the prior year period due to the OLBK acquisition and participation in the SBA PPP.  Total organic loan growth was 10.0% year-over-year, driven by the SBA PPP and commercial real estate loans.  Total deposits increased 40.8% year-over-year to $12.2 billion due primarily to the OLBK acquisition, CARES Act stimulus, and increased personal savings.  Total deposits, excluding the OLBK acquisition, increased $1.1 billion, or 12.9%, year-over-year due to CARES Act stimulus and increased personal savings, which more than offset a $0.4 million reduction in certificates of deposit.

Credit Quality
As of September 30, 2020, both non-performing loans and non-performing assets as percentages of the portfolio and total assets have remained relatively low and consistent throughout the last five quarters. The granting of loan deferrals has resulted in continued relatively benign asset quality metrics, as nonperforming and delinquency amounts do not reflect loans that have been modified as a result of the COVID-19 pandemic. Total loans past due as a percentage of total portfolio loans of 25 basis points decreased 5 basis points year-over-year and 26 basis points sequentially.  In addition, annualized net loan charge-offs to average loans remained low for the quarter and year-to-date periods at zero and 8 basis points, respectively.

The provision for credit losses of $16.3 million decreased significantly from the second quarter due to improved macroeconomic factors.  The allowance for credit losses specific to total portfolio loans at September 30, 2020 was $185.1 million, or 1.68% of total loans; or, when excluding SBA PPP loans, 1.83% of total portfolio loans.  Excluded from the allowance for credit losses and related coverage ratio are fair market value adjustments on previously acquired loans representing 0.43% of total loans.

Criticized and classified loan balances increased to 3.25% of total portfolio loans due primarily to the downgrade of $72 million of hotel loans resulting from low occupancy due to the current pandemic-driven environment.  These downgraded loans satisfy the CARES Act loan deferral guidelines, and have an average LTV of 60% as well as strong guarantor support.  Furthermore, the criticized and classified ratio continued to be favorable to peer bank averages.

Net Interest Margin and Income
The net interest margin of 3.31% for the third quarter of 2020 decreased 25 basis points year-over-year, primarily due to the lower interest rate environment from the five decreases in the Federal Reserve Board's target federal funds rate, totaling 225 basis points, from July 2019 through March 2020, as well as a flattening of the yield curve.  Reflecting the significantly lower interest rate environment, we aggressively reduced our deposit rates beginning in late March, which helped to lower deposit funding costs 45 basis points year-over-year to 26 basis points for the third quarter of 2020.  In addition, we shortened the maturities and experienced lower rates in our third quarter FHLB borrowings as compared to the prior year, which helped to lower the cost of borrowings 35 basis points year-over-year.  Accretion from acquisitions benefited the third quarter net interest margin by 18 basis points, as compared to 13 basis points in the prior year period and 19 basis points during the second quarter of 2020.  Lastly, while the SBA PPP loans will positively impact the net interest margin as the loans are forgiven during the next several quarters, the funding of these loans benefited the third quarter of 2020 net interest margin by a net two basis points.

Net interest income increased $24.5 million, or 25.5%, during the third quarter of 2020, as compared to the same quarter of 2019, due to a 34.8% increase in average total earning assets, primarily driven by the OLBK acquisition and related accretion from purchase accounting, partially offset by the lower loan yields, reflecting repricing of existing loans and lower new offered rates in the current market environment.  For the nine months ended September 30, 2020, net interest income increased $66.8 million, or 22.8%, due to higher average total earning assets, despite an overall lower net interest margin, as discussed for the three-month period comparison.

Non-Interest Income
For the third quarter of 2020, non-interest income of $34.6 million increased $7.7 million, or 28.4%, from the third quarter of 2019, driven primarily by mortgage banking income and higher commercial customer loan swap-related income, which were partially offset by lower service charges on deposits.  Reflecting the low interest rate environment and organic growth, mortgage banking fees increased $5.9 million, or 228.0%, compared to the prior year period, as residential mortgage origination dollar volume doubled, with approximately 75% of those originations sold into the secondary market.  Loan swap-related income for the quarter was $1.3 million reflecting commercial loan customer demand in the current rate environment.  This quarter represented the one-year anniversary of the limitation on interchange fees due to the Durbin amendment in the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank Act").  Service charges on deposits were lower due to higher consumer deposits associated with CARES Act stimulus and lower general consumer spending, resulting in fewer eligible account fees.  Primarily reflecting the items discussed above, non-interest income, for the nine months ended September 30, 2020, increased $9.6 million, or 11.2%.

Non-Interest Expense
Excluding restructuring and merger-related expenses, non-interest expense for the three months ended September 30, 2020 increased $14.8 million, or 20.6%, to $86.3 million compared to the prior year period, primarily reflecting additional staffing and financial center locations from the OLBK acquisition.  Total operating expenses continued to be well-controlled through company-wide efforts to effectively manage discretionary costs, open positions, and marketing expenses.  These efforts are demonstrated by efficiency ratios of 55.23% and 56.15% for the three-month and nine-month periods ending September 30, 2020, respectively.  FDIC insurance expense increased $3.2 million, or 259.5%, due to a higher assessment rate associated with our larger asset level, as well as the recording of a $2.4 million assessment credit in the prior year period.  On a similar basis, non-interest expense during the first nine months of 2020 increased $42.8 million, or 19.9%, compared to the prior year period, primarily reflecting the OLBK acquisition and the mid-year annual salary increases.

Capital
WesBanco continues to maintain what we believe are strong regulatory capital ratios as both consolidated and bank-level regulatory capital ratios are well above the applicable "well-capitalized" standards promulgated by bank regulators and the BASEL III capital standards.  At September 30, 2020, Tier I leverage was 10.18%, Tier I risk-based capital ratio was 14.29%, common equity Tier 1 capital ratio ("CET 1") was 12.99%, and total risk-based capital was 17.18%. 

As compared to the prior year period, Tier 1 leverage and Tier 1 risk-based capital ratios were adversely impacted by the movement of $136.5 million of trust preferred securities, during the fourth quarter of 2019, from Tier 1 to Tier 2 risk-based capital, as required by the Dodd-Frank Act for financial institutions with total assets greater than $15 billion.  As an offset to this requirement, WesBanco, on August 4, 2020, raised $150 million of preferred stock, considered Tier 1 capital, through the issuance of 6,000,000 depositary shares, which are listed on the Nasdaq Global Select Market under the symbol "WSBCP".  The net proceeds from this issuance are expected to be used for general corporate purposes, which may include repayment, redemption or refinancing of indebtedness, capital expenditures, making contributions to the capital of WesBanco Bank to support its lending, investing and other financial services activities, funding of possible acquisitions, working capital, satisfaction of other obligations of WesBanco and its subsidiaries, and repurchase of WesBanco's outstanding equity securities.

Conference Call and Webcast
WesBanco will host a conference call to discuss the Company's financial results for the third quarter of 2020 at 3:00 p.m. ET on Thursday, October 22, 2020.  Interested parties can access the live webcast of the conference call through the Investor Relations section of the Company's website, 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 10136715.  The replay will begin at approximately 5:00 p.m. ET on October 22, and end at 12 a.m. ET on November 5.  An archive of the webcast will be available for one year on the Investor Relations section of the Company's website (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, 2019 and documents subsequently filed by WesBanco with the Securities and Exchange Commission ("SEC"), including WesBanco's Form 10-Q for the quarters ended March 31 and June 30, 2020, which are available at the SEC's website, 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 and under "Risk Factors" in Part II, Item 1A of WesBanco's March 31, 2020 Quarterly Report on Form 10-Q.  Such statements are subject to important factors that could cause actual results to differ materially from those contemplated by such statements, including, without limitation, the effects of changing regional and national economic conditions including the effects of the COVID-19 pandemic; changes in interest rates, spreads on earning assets and interest-bearing liabilities, and associated interest rate sensitivity; sources of liquidity available to WesBanco and its related subsidiary operations; potential future credit losses and the credit risk of commercial, real estate, and consumer loan customers and their borrowing activities; actions of the Federal Reserve Board, the Federal Deposit Insurance Corporation, the SEC, the Financial Institution Regulatory Authority, the Municipal Securities Rulemaking Board, the Securities Investors Protection Corporation, and other regulatory bodies; potential legislative and federal and state regulatory actions and reform, including, without limitation, the impact of the implementation of the Dodd-Frank Act; adverse decisions of federal and state courts; fraud, scams and schemes of third parties; cyber-security breaches; competitive conditions in the financial services industry; rapidly changing technology affecting financial services; marketability of debt instruments and corresponding impact on fair value adjustments; and/or other external developments materially impacting WesBanco's operational and financial performance.  WesBanco does not assume any duty to update forward-looking statements.

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

About WesBanco, Inc.
Founded in 1870, WesBanco, Inc. (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 $4.6 billion of assets under management (as of September 30, 2020).  WesBanco's banking subsidiary, WesBanco Bank, Inc., operates 235 financial centers in the states of Indiana, Kentucky, Maryland, Ohio, Pennsylvania, and West Virginia.  Additionally, WesBanco operates an insurance agency, WesBanco Insurance Services, Inc., and a full service broker/dealer, WesBanco Securities, Inc.

 

	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				2020		2019		% Change		2020		2019		% Change
		Loans, including fees			$           116,524		$             95,369		22.2		$           351,095		$           287,287		22.2
		Interest and dividends on securities:
			Taxable		11,669		15,887		(26.6)		42,702		49,061		(13.0)
			Tax-exempt		4,182		4,759		(12.1)		12,940		15,443		(16.2)
				Total interest and dividends on securities	15,851		20,646		(23.2)		55,642		64,504		(13.7)
		Other interest income			1,282		1,333		(3.8)		4,062		4,153		(2.2)
	Total interest and dividend income				133,657		117,348		13.9		410,799		355,944		15.4
	Interest expense
		Interest bearing demand deposits			1,225		4,489		(72.7)		5,970		12,749		(53.2)
		Money market deposits			707		1,973		(64.2)		3,937		5,881		(33.1)
		Savings deposits			303		861		(64.8)		1,523		2,061		(26.1)
		Certificates of deposit			3,197		3,830		(16.5)		10,765		11,831		(9.0)
				Total interest expense on deposits	5,432		11,153		(51.3)		22,195		32,522		(31.8)
		Federal Home Loan Bank borrowings			5,457		6,645		(17.9)		20,982		19,269		8.9
		Other short-term borrowings			304		1,353		(77.5)		1,454		4,392		(66.9)
		Subordinated debt and junior subordinated debt			1,871		2,077		(9.9)		6,400		6,820		(6.2)
				Total interest expense	13,064		21,228		(38.5)		51,031		63,003		(19.0)
	Net interest income				120,593		96,120		25.5		359,768		292,941		22.8
		Provision for credit losses			16,288		4,121		NM		107,949		9,375		NM
	Net interest income after provision for credit losses				104,305		91,999		13.4		251,819		283,566		(11.2)
	Non-interest income
		Trust fees			6,426		6,425		0.0		19,580		19,880		(1.5)
		Service charges on deposits			5,332		7,056		(24.4)		16,272		19,803		(17.8)
		Electronic banking fees			4,780		5,253		(9.0)		13,100		18,299		(28.4)
		Net securities brokerage revenue			1,725		1,765		(2.3)		4,787		5,597		(14.5)
		Bank-owned life insurance			2,088		1,373		52.1		5,609		4,032		39.1
		Mortgage banking income			8,488		2,588		228.0		17,295		5,262		228.7
		Net securities gains			787		235		234.9		3,577		3,800		(5.9)
		Net (loss)/gain on other real estate owned and other assets			(19)		158		(112.0)		84		670		(87.5)
		Other income			5,005		2,097		138.7		15,177		8,535		77.8
				Total non-interest income	34,612		26,950		28.4		95,481		85,878		11.2
	Non-interest expense
		Salaries and wages			38,342		32,915		16.5		114,025		95,501		19.4
		Employee benefits			10,604		9,726		9.0		31,115		29,419		5.8
		Net occupancy			7,092		5,392		31.5		20,809		16,343		27.3
		Equipment			6,229		5,273		18.1		17,991		14,924		20.6
		Marketing			1,577		1,505		4.8		4,282		4,002		7.0
		FDIC insurance			1,948		(1,221)		259.5		6,456		1,287		401.6
		Amortization of intangible assets			3,346		2,446		36.8		10,085		7,424		35.8
		Restructuring and merger-related expense			3,608		1,688		113.7		9,241		4,876		89.5
		Other operating expenses			17,197		15,544		10.6		52,775		45,876		15.0
				Total non-interest expense	89,943		73,268		22.8		266,779		219,652		21.5
	Income before provision for income taxes				48,974		45,681		7.2		80,521		149,792		(46.2)
		Provision for income taxes			7,669		8,334		(8.0)		11,332		27,295		(58.5)
	Net Income				41,305		37,347		10.6		69,189		122,497		(43.5)
	Preferred stock dividends				-		-		-		-		-		-
	Net income available to common shareholders				$             41,305		$             37,347		10.6		$             69,189		$           122,497		(43.5)
	Taxable equivalent net interest income				$          121,705		$            97,385		25.0		$          363,208		$          297,046		22.3
	Per common share data
	Net income per common share - basic				$                 0.61		$                 0.68		(10.3)		$                 1.03		$                 2.24		(54.0)
	Net income per common share - diluted				0.61		0.68		(10.3)		1.03		2.24		(54.0)
	Net income per common share - diluted, excluding certain items (1)(2)				0.66		0.71		(7.0)		1.14		2.31		(50.6)
	Dividends declared				0.32		0.31		3.2		0.96		0.93		3.2
	Book value (period end)				40.66		38.42		5.8		40.66		38.42		5.8
	Tangible common book value (period end) (1)				21.39		21.89		(2.3)		21.39		21.89		(2.3)
	Average common shares outstanding - basic				67,214,759		54,695,578		22.9		67,268,449		54,641,057		23.1
	Average common shares outstanding - diluted				67,269,303		54,751,344		22.9		67,351,857		54,705,761		23.1
	Period end common shares outstanding				67,216,012		54,691,225		22.9		67,216,012		54,691,225		22.9
	Period end preferred shares outstanding				150,000		-		100.0		150,000		-		100.0
	(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,
							2020		2019		% Change
	Return on average assets						0.56	%	1.31	%	(57.25)	%
	Return on average assets, excluding
	after-tax restructuring and merger-related expenses (1)						0.62		1.35		(54.07)
	Return on average equity						3.53		7.99		(55.82)
	Return on average equity, excluding
	after-tax restructuring and merger-related expenses (1)						3.90		8.24		(52.67)
	Return on average tangible equity (1)						6.96		14.97		(53.51)
	Return on average tangible equity, excluding
	after-tax restructuring and merger-related expenses (1)						7.62		15.42		(50.58)
	Return on average tangible common equity (1)						7.09		14.97		(52.64)
	Return on average tangible common equity, excluding
	after-tax restructuring and merger-related expenses (1)						7.76		15.42		(49.68)
	Yield on earning assets (2)						3.86		4.41		(12.47)
	Cost of interest bearing liabilities						0.69		1.07		(35.51)
	Net interest spread (2)						3.17		3.34		(5.09)
	Net interest margin (2)						3.38		3.64		(7.14)
	Efficiency (1) (2)						56.15		56.09		0.11
	Average loans to average deposits						92.37		87.77		5.24
	Annualized net loan charge-offs/average loans						0.08		0.05		60.00
	Effective income tax rate						14.07		18.22		(22.78)
							For the Quarter Ended
							Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,
							2020		2020		2020		2019		2019
	Return on average assets						0.98	%	0.11	%	0.60	%	1.04	%	1.19	%
	Return on average assets, excluding
	after-tax restructuring and merger-related expenses (1)						1.05		0.12		0.70		1.30		1.23
	Return on average equity						6.17		0.69		3.63		6.20		7.06
	Return on average equity, excluding
	after-tax restructuring and merger-related expenses (1)						6.60		0.75		4.26		7.75		7.32
	Return on average tangible equity (1)						11.56		1.98		7.07		11.53		13.06
	Return on average tangible equity, excluding
	after-tax restructuring and merger-related expenses (1)						12.31		2.08		8.18		14.24		13.50
	Return on average tangible common equity (1)						12.21		1.98		7.07		11.53		13.06
	Return on average tangible common equity, excluding								.
	after-tax restructuring and merger-related expenses (1)						13.00		2.08		8.18		14.24		13.50
	Yield on earning assets (2)						3.66		3.75		4.19		4.25		4.34
	Cost of interest bearing liabilities						0.53		0.63		0.91		0.99		1.09
	Net interest spread (2)						3.13		3.12		3.28		3.26		3.25
	Net interest margin (2)						3.31		3.32		3.54		3.55		3.56
	Efficiency (1) (2)						55.23		55.57		57.69		58.29		57.57
	Average loans to average deposits						90.88		91.87		94.61		90.78		88.96
	Annualized net loan charge-offs and recoveries /average loans						(0.00)		0.07		0.18		0.20		0.04
	Effective income tax rate						15.66		0.93		13.40		16.23		18.24
	Trust assets, market value at period end						$        4,649,054		$        4,487,042		$        4,082,141		$        4,719,966		$        4,443,430
	(1) See non-GAAP financial measures for additional information relating to the calculation of this item.
	(2) The yield on earning assets, net interest margin, net interest spread and efficiency ratios are presented on a fully
	taxable-equivalent (FTE) and annualized basis. The FTE basis adjusts for the tax benefit of income on certain tax-exempt
	loans and investments. WesBanco believes this measure to be the preferred industry measurement of net interest income and
	provides a relevant comparison between taxable and non-taxable amounts.

 

 

	WESBANCO, INC.
	Consolidated Selected Financial Highlights										Page 7
	(unaudited, dollars in thousands, except shares)										% Change
	Balance sheets				September 30,					December 31,	December 31, 2019
	Assets				2020		2019		% Change	2019	to September 30, 2020
	Cash and due from banks				$           215,982		$         209,606		3.0	$               182,905	18.1
	Due from banks - interest bearing				544,284		34,727		NM	51,891	NM
	Securities:
		Equity securities, at fair value			12,516		11,644		7.5	12,343	1.4
		Available-for-sale debt securities, at fair value			2,045,924		2,209,199		(7.4)	2,393,558	(14.5)
		Held-to-maturity debt securities (fair values of $782,401; $877,809
		and $874,523, respectively)			746,767		852,824		(12.4)	851,753	(12.3)
			Allowance for credit losses, held-to-maturity debt securities		(461)		-		(100.0)	-	(100.0)
		Net held-to-maturity debt securities			746,306		852,824		(12.5)	851,753	(12.4)
			Total securities		2,804,746		3,073,667		(8.7)	3,257,654	(13.9)
	Loans held for sale				134,151		20,715		547.6	43,013	211.9
	Portfolio loans:
		Commercial real estate			5,708,648		3,854,653		48.1	5,725,008	(0.3)
		Commercial and industrial			2,507,235		1,332,275		88.2	1,644,699	52.4
		Residential real estate			1,798,019		1,638,574		9.7	1,873,647	(4.0)
		Home equity			647,052		587,745		10.1	649,678	(0.4)
		Consumer			328,592		343,505		(4.3)	374,953	(12.4)
	Total portfolio loans, net of unearned income				10,989,546		7,756,752		41.7	10,267,985	7.0
	Allowance for credit losses - loans  (1)				(185,109)		(54,317)		(240.8)	(52,429)	(253.1)
			Net portfolio loans		10,804,437		7,702,435		40.3	10,215,556	5.8
	Premises and equipment, net				248,491		178,344		39.3	261,014	(4.8)
	Accrued interest receivable				65,023		37,156		75.0	43,648	49.0
	Goodwill and other intangible assets, net				1,165,566		914,705		27.4	1,149,153	1.4
	Bank-owned life insurance				304,288		229,349		32.7	299,516	1.6
	Other assets				265,172		193,183		37.3	215,762	22.9
	Total Assets				$      16,552,140		$    12,593,887		31.4	$          15,720,112	5.3
	Liabilities
	Deposits:
		Non-interest bearing demand			$         4,073,305		$      2,476,392		64.5	$            3,178,270	28.2
		Interest bearing demand			2,633,601		2,128,581		23.7	2,316,855	13.7
		Money market			1,619,410		1,085,732		49.2	1,518,314	6.7
		Savings deposits			2,167,597		1,698,125		27.6	1,934,647	12.0
		Certificates of deposit			1,707,512		1,275,533		33.9	2,055,920	(16.9)
			Total deposits		12,201,425		8,664,363		40.8	11,004,006	10.9
	Federal Home Loan Bank borrowings				794,621		1,161,092		(31.6)	1,415,615	(43.9)
	Other short-term borrowings				381,909		325,247		17.4	282,362	35.3
	Subordinated debt and junior subordinated debt				192,150		156,632		22.7	199,869	(3.9)
			Total borrowings		1,368,680		1,642,971		(16.7)	1,897,846	(27.9)
	Accrued interest payable				5,014		5,273		(4.9)	8,077	(37.9)
	Other liabilities				244,055		180,011		35.6	216,262	12.9
	Total Liabilities				13,819,174		10,492,618		31.7	13,126,191	5.3
	Shareholders' Equity
	Preferred stock, no par value; 1,000,000 shares authorized in 2020 and 2019, respectively;
		150,000 shares 6.75% non-cumulative perpetual preferred stock, Series A,
		liquidation preference $150.0 million, issued and outstanding at September 30, 2020
		and 0 shares issued and outstanding at December 31, 2019, respectively.			144,529		-		100.0	-	100.0
	Common stock, $2.0833 par value; 100,000,000 shares authorized in
		2020 and 2019, respectively; 68,081,306,  54,698,250 and 68,078,116 shares
		issued, respectively; 67,216,012, 54,691,225 and 67,824,428 shares			141,834		113,954		24.5	141,827	0.0
		outstanding, respectively
	Capital surplus				1,634,172		1,169,595		39.7	1,636,966	(0.2)
	Retained earnings				802,892		809,332		(0.8)	824,694	(2.6)
	Treasury stock ( 865,294, 7,025 and 253,688 shares - at cost, respectively)				(27,403)		(252)		NM	(9,463)	(189.6)
	Accumulated other comprehensive income (loss)				38,301		9,922		286.0	1,201	NM
	Deferred benefits for directors				(1,359)		(1,282)		(6.0)	(1,304)	(4.2)
	Total Shareholders' Equity				2,732,966		2,101,269		30.1	2,593,921	5.4
	Total Liabilities and Shareholders' Equity				$      16,552,140		$    12,593,887		31.4	$          15,720,112	5.3
	(1) Allowance for credit losses - loans as of September 30, 2020 includes a day 1 adjustment of $41.4 million due to the adoption of ASU 2016-13.
	NM - Not Meaningful

 

 

	WESBANCO, INC.
	Consolidated Selected Financial Highlights							Page 8
	(unaudited, dollars in thousands, except shares)
	Balance sheets				September 30,		June 30,
	Assets				2020		2020	% Change
	Cash and due from banks				$           215,982		$         219,022	(1.4)
	Due from banks - interest bearing				544,284		671,312	(18.9)
	Securities:
		Equity securities, at fair value			12,516		12,277	1.9
		Available-for-sale, at fair value			2,045,924		2,073,949	(1.4)
		Held-to-maturity (fair values of $782,401 and 802,666, respectively)			746,767		766,416	(2.6)
			Allowance for credit losses, held-to-maturity debt securities		(461)		(817)	43.6
		Net held-to-maturity debt securities			746,306		765,599	(2.5)
			Total securities		2,804,746		2,851,825	(1.7)
	Loans held for sale				134,151		53,324	151.6
	Portfolio Loans:
		Commercial real estate			5,708,648		5,694,457	0.2
		Commercial and industrial			2,507,235		2,496,096	0.4
		Residential real estate			1,798,019		1,893,544	(5.0)
		Home equity			647,052		646,323	0.1
		Consumer			328,592		343,723	(4.4)
	Total portfolio loans, net of unearned income				10,989,546		11,074,143	(0.8)
	Allowance for credit losses - loans  (1)				(185,109)		(168,475)	(9.9)
		Net portfolio loans			10,804,437		10,905,668	(0.9)
	Premises and equipment, net				248,491		255,306	(2.7)
	Accrued interest receivable				65,023		59,151	9.9
	Goodwill and other intangible assets, net				1,165,566		1,166,853	(0.1)
	Bank-owned life insurance				304,288		303,022	0.4
	Other assets				265,172		269,912	(1.8)
	Total Assets				$      16,552,140		$    16,755,395	(1.2)
	Liabilities
	Deposits:
		Non-interest bearing demand			$         4,073,305		$      4,067,903	0.1
		Interest bearing demand			2,633,601		2,596,132	1.4
		Money market			1,619,410		1,610,248	0.6
		Savings deposits			2,167,597		2,103,154	3.1
		Certificates of deposit			1,707,512		1,809,016	(5.6)
			Total deposits		12,201,425		12,186,453	0.1
	Federal Home Loan Bank borrowings				794,621		1,129,631	(29.7)
	Other short-term borrowings				381,909		390,777	(2.3)
	Subordinated debt and junior subordinated debt				192,150		192,080	0.0
			Total borrowings		1,368,680		1,712,488	(20.1)
	Accrued interest payable				5,014		6,040	(17.0)
	Other liabilities				244,055		280,893	(13.1)
	Total liabilities				13,819,174		14,185,874	(2.6)
	Shareholders' Equity
	Preferred stock, no par value; 1,000,000 shares authorized in 2020 and 2019, respectively;
		150,000 shares 6.75% non-cumulative perpetual preferred stock, Series A,
		liquidation preference $150.0 million, issued and outstanding at September 30, 2020
		and 0 shares issued and outstanding at December 31, 2019, respectively.			144,529		-	100.0
	Common stock, $2.0833 par value; 100,000,000 shares authorized;
		68,081,306 and 68,078,116 shares issued, respectively;
		67,216,012 and 67,211,192 shares outstanding, respectively			141,834		141,827	0.0
	Capital surplus				1,634,172		1,633,079	0.1
	Retained earnings				802,892		782,990	2.5
	Treasury stock (865,294 and 866,924 shares - at cost)				(27,403)		(27,518)	0.4
	Accumulated other comprehensive income (loss)				38,301		40,516	(5.5)
	Deferred benefits for directors				(1,359)		(1,373)	1.0
	Total Shareholders' Equity				2,732,966		2,569,521	6.4
	Total Liabilities and Shareholders' Equity				$      16,552,140		$    16,755,395	(1.2)
	(1) Allowance for credit losses - loans includes a day 1 adjustment of $41.4 million due to the adoption of ASU 2016-13.
	NM - Not Meaningful

 

 

	WESBANCO, INC.
	Consolidated Selected Financial Highlights																		Page 9
	(unaudited, dollars in thousands)
	Average balance sheet and
	net interest margin analysis					Three Months Ended September 30,								For the Nine Months Ended September 30,
						2020				2019				2020				2019
						Average	Average			Average	Average			Average	Average			Average	Average
	Assets					Balance	Rate			Balance	Rate			Balance	Rate			Balance	Rate
	Due from banks - interest bearing					$           755,575	0.16	%		$             71,163	2.41	%		$                509,928	0.25	%		$           73,617	2.50	%
	Loans, net of unearned income (1)					11,107,106	4.17			7,751,724	4.88			10,813,737	4.34			7,704,212	4.99
	Securities: (2)
	Taxable					2,121,780	2.19			2,301,933	2.76			2,328,196	2.45			2,330,439	2.81
	Tax-exempt (3)					603,835	3.49			684,164	3.52			624,278	3.50			744,949	3.50
	Total securities					2,725,615	2.47			2,986,097	2.93			2,952,474	2.67			3,075,388	2.97
	Other earning assets					56,575	6.88			53,181	6.80			65,849	6.27			51,954	7.12
	Total earning assets (3)					14,644,871	3.66	%		10,862,165	4.34	%		14,341,988	3.86	%		10,905,171	4.41	%
	Other assets					2,074,846				1,625,988				2,065,777				1,590,847
	Total Assets					$      16,719,717				$      12,488,153				$           16,407,765				$     12,496,018
	Liabilities and Shareholders' Equity
	Interest bearing demand deposits					$        2,654,161	0.18	%		$        2,126,720	0.84	%		$             2,518,952	0.32	%		$       2,131,887	0.80	%
	Money market accounts					1,623,969	0.17			1,097,930	0.71			1,590,498	0.33			1,122,665	0.70
	Savings deposits					2,140,932	0.06			1,686,267	0.20			2,051,930	0.10			1,674,262	0.16
	Certificates of deposit					1,761,087	0.72			1,321,696	1.15			1,865,439	0.77			1,385,349	1.14
	Total interest bearing deposits					8,180,149	0.26			6,232,613	0.71			8,026,819	0.37			6,314,163	0.69
	Federal Home Loan Bank borrowings					1,006,593	2.16			1,048,401	2.51			1,285,266	2.18			1,036,464	2.49
	Other borrowings					383,771	0.32			317,931	1.69			361,949	0.54			321,976	1.82
	Subordinated debt and junior subordinated debt					192,093	3.87			156,561	5.26			194,195	4.40			169,944	5.37
	Total interest bearing liabilities					9,762,606	0.53	%		7,755,506	1.09	%		9,868,229	0.69	%		7,842,547	1.07	%
	Non-interest bearing demand deposits					4,041,681				2,481,384				3,679,743				2,463,076
	Other liabilities					252,917				153,729				239,797				139,761
	Shareholders' equity					2,662,513				2,097,534				2,619,996				2,050,634
	Total Liabilities and Shareholders' Equity					$      16,719,717				$      12,488,153				$           16,407,765				$     12,496,018
	Taxable equivalent net interest spread						3.13	%			3.25	%			3.17	%			3.34	%
	Taxable equivalent net interest margin						3.31	%			3.56	%			3.38	%			3.64	%
	(1) Gross of allowance for loan losses and net of unearned income.  Includes non-accrual and loans held for sale. Loan fees included in interest income on loans are $6.2 million and $0.4 million for the three months ended September 30, 2020 and 2019, respectively, and are $9.5 million and $1.3 million for the nine months ended September 30, 2020 and 2019, respectively. As part of loan fees for both the three and nine month ended September 30, 2020, is $5.6 million and $7.7 million of PPP loan fees. Additionally, loan accretion included in interest income on loans acquired from prior acquisitions was $4.2 million and $3.4 million for the three months ended September 30, 2020 and 2019, respectively, and are $12.5 million and $13.0 million for the nine months ended September 30, 2020 and 2019, respectively. Accretion on interest bearing liabilities acquired from the prior acquisitions was $2.1 million and $0.3 million for the three months ended September 30, 2020 and 2019, respectively, and are $8.1 million and  $0.9 million for the nine months ended September 30, 2020 and 2019, respectively. (2) Average yields on available-for-sale securities are calculated based on amortized cost. (3) Taxable equivalent basis is calculated on tax-exempt securities using a rate of 21% for each period presented.

 

 

	WESBANCO, INC.
	Consolidated Selected Financial Highlights												Page 10
	(unaudited, dollars in thousands, except shares and per share amounts)
					Quarter Ended
	Statement of Income				Sept.  30,		June 30,		Mar. 31,		Dec. 31,		Sept.  30,
	Interest and dividend income				2020		2020		2020		2019		2019
		Loans, including fees			$                     116,524		$             115,068		$            119,503		$             105,879		$              95,369
		Interest and dividends on securities:
			Taxable		11,669		14,047		16,986		16,586		15,887
			Tax-exempt		4,182		4,302		4,456		4,563		4,759
				Total interest and dividends on securities	15,851		18,349		21,442		21,149		20,646
		Other interest income			1,282		1,277		1,503		1,281		1,333
	Total interest and dividend income				133,657		134,694		142,448		128,309		117,348
	Interest expense
		Interest bearing demand deposits			1,225		1,350		3,393		4,054		4,489
		Money market deposits			707		879		2,352		2,143		1,973
		Savings deposits			303		297		923		935		861
		Certificates of deposit			3,197		3,514		4,054		3,800		3,830
				Total interest expense on deposits	5,432		6,040		10,723		10,932		11,153
		Federal Home Loan Bank borrowings			5,457		7,293		8,232		7,279		6,645
		Other short-term borrowings			304		279		870		1,009		1,353
		Subordinated debt and junior subordinated debt			1,871		2,069		2,461		2,125		2,077
				Total interest expense	13,064		15,681		22,286		21,345		21,228
	Net interest income				120,593		119,013		120,162		106,964		96,120
		Provision for credit losses			16,288		61,841		29,821		1,824		4,121
	Net interest income after provision for credit losses				104,305		57,172		90,341		105,140		91,999
	Non-interest income
		Trust fees			6,426		6,202		6,952		6,699		6,425
		Service charges on deposits			5,332		4,323		6,617		7,171		7,056
		Electronic banking fees			4,780		4,066		4,254		4,336		5,253
		Net securities brokerage revenue			1,725		1,384		1,679		1,393		1,765
		Bank-owned life insurance			2,088		1,752		1,769		1,882		1,373
		Mortgage banking income			8,488		7,531		1,276		2,957		2,588
		Net securities gains			787		1,299		1,491		520		235
		Net (loss) / gain on other real estate owned and other assets			(19)		(66)		169		61		158
		Other income			5,005		6,369		3,802		5,819		2,097
				Total non-interest income	34,612		32,860		28,009		30,838		26,950
	Non-interest expense
		Salaries and wages			38,342		36,773		38,910		36,984		32,915
		Employee benefits			10,604		10,138		10,373		9,894		9,726
		Net occupancy			7,092		6,634		7,084		6,162		5,392
		Equipment			6,229		5,722		6,039		5,570		5,273
		Marketing			1,577		1,567		1,138		2,059		1,505
		FDIC insurance			1,948		2,395		2,113		668		(1,221)
		Amortization of intangible assets			3,346		3,365		3,374		2,916		2,446
		Restructuring and merger-related expense			3,608		468		5,164		11,522		1,688
		Other operating expenses			17,197		18,440		17,138		16,781		15,544
				Total non-interest expense	89,943		85,502		91,333		92,556		73,268
	Income before provision for income taxes				48,974		4,530		27,017		43,422		45,681
		Provision for income taxes			7,669		42		3,621		7,046		8,334
	Net Income				41,305		4,488		23,396		36,376		37,347
	Preferred stock dividends				-		-		-		-		-
	Net income available to common shareholders				$                       41,305		$                 4,488		$              23,396		$               36,376		$              37,347
	Taxable equivalent net interest income				$                    121,705		$             120,156		$           121,346		$             108,177		$             97,385
	Per common share data
	Net income per common share - basic				$                          0.61		$                   0.07		$                 0.34		$                   0.60		$                 0.68
	Net income per common share - diluted				0.61		0.07		0.34		0.60		0.68
	Net income per common share - diluted, excluding certain items (1)(2)				0.66		0.07		0.40		0.75		0.71
	Dividends declared				0.32		0.32		0.32		0.31		0.31
	Book value (period end)				40.66		38.23		38.56		38.24		38.42
	Tangible common book value (period end) (1)				21.39		21.10		21.36		21.55		21.89
	Average common shares outstanding - basic				67,214,759		67,104,628		67,486,550		60,461,325		54,695,578
	Average common shares outstanding - diluted				67,269,303		67,181,755		67,587,446		60,562,366		54,751,344
	Period end common shares outstanding				67,216,012		67,211,192		67,058,155		67,824,428		54,691,225
	Full time equivalent employees				2,618		2,676		2,703		2,705		2,330
	(1) See non-GAAP financial measures for additional information relating to the calculation of this item.
	(2) Certain items excluded from the calculation consist of after-tax restructuring and merger-related expenses.

 

 

	WESBANCO, INC.
	Consolidated Selected Financial Highlights												Page 11
	(unaudited, dollars in thousands)
					Quarter Ended
					Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,
	Asset quality data				2020		2020		2020		2019		2019
	Non-performing assets:
		Troubled debt restructurings - accruing			$          4,191		$          5,105		$          5,434		$          5,431		$          5,840
		Non-accrual loans:
			Troubled debt restructurings		1,818		1,339		1,571		1,422		1,345
			Other non-accrual loans		35,448		34,119		32,796		43,491		33,456
			Total non-accrual loans		37,266		35,458		34,367		44,913		34,801
			Total non-performing loans		41,457		40,563		39,801		50,344		40,641
		Other real estate and repossessed assets			738		1,212		1,083		4,178		3,678
			Total non-performing assets		$         42,195		$         41,775		$         40,884		$         54,522		$         44,319
	Past due loans (1):
		Loans past due 30-89 days			$         17,338		$         30,595		$         32,805		$         36,330		$         17,906
		Loans past due 90 days or more			10,170		36,903		14,287		11,613		5,425
			Total past due loans		$         27,508		$         67,498		$         47,092		$         47,943		$         23,331
	Criticized and classified loans (2):
		Criticized loans			$       248,264		$       148,580		$       120,801		$       118,959		$         78,880
		Classified loans			108,594		98,127		95,162		103,519		95,071
			Total criticized and classified loans		$       356,858		$       246,707		$       215,963		$       222,478		$       173,951
	Loans past due 30-89 days / total portfolio loans (3)				0.16	%	0.28	%	0.32	%	0.35	%	0.23	%
	Loans past due 90 days or more / total portfolio loans				0.09		0.33		0.14		0.11		0.07
	Non-performing loans / total portfolio loans				0.38		0.37		0.38		0.49		0.52
	Non-performing assets/total portfolio loans, other
		real estate and repossessed assets			0.38		0.38		0.39		0.53		0.57
	Non-performing assets / total assets				0.26		0.25		0.26		0.35		0.35
	Criticized and classified loans / total portfolio loans				3.25		2.23		2.09		2.17		2.24
	Allowance for credit losses
	Allowance for credit losses - loans (4)				$       185,109		$       168,475		$       114,272		$         52,429		$         54,317
	Provision for credit losses (4)				16,288		61,841		29,821		1,824		4,121
	Net loan and deposit account overdraft charge-offs and recoveries				(133)		1,942		4,716		4,476		791
	Annualized net loan charge-offs and recoveries /average loans				(0.00)	%	0.07	%	0.18	%	0.20	%	0.04	%
	Allowance for credit losses - loans / total portfolio loans				1.68	%	1.52	%	1.10	%	0.51	%	0.70	%
	Allowance for credit losses - loans / total portfolio loans excluding PPP loans				1.83	%	1.65	%	1.10	%	0.51	%	0.70	%
	Allowance for credit losses - loans / non-performing loans				4.47	x	4.15	x	2.87	x	1.04	x	1.34	x
	Allowance for credit losses - loans / non-performing loans and
		loans past due			2.68	x	1.56	x	1.32	x	0.53	x	0.85	x
					Quarter Ended
					Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,
					2020		2020		2020		2019		2019
	Capital ratios
	Tier I leverage capital				10.18	%	9.09	%	9.64	%	11.30	%	11.30	%
	Tier I risk-based capital				14.29		12.59		12.51		12.89		15.40
	Total risk-based capital				17.18		15.33		14.83		15.12		16.36
	Common equity tier 1 capital ratio (CET 1)				12.99		12.59		12.51		12.89		13.87
	Average shareholders' equity to average assets				15.92		15.57		16.43		16.73		16.80
	Tangible equity to tangible assets (5)				10.27		9.09		9.65		10.02		10.24
	Tangible common equity to tangible assets (5)				9.33		9.09		9.65		10.02		10.24
	(1) Excludes non-performing loans.
	(2) Criticized and classified commercial loans may include loans that are also reported as non-performing or past due.
	(3) Total portfolio loans includes $853.1 million of PPP loans as of September 30, 2020.
	(4) The provision for credit losses includes $0.1 million and $5.1 million for loan commitments for the three months ended September 30, 2020 and June 30, 2020, respectively.
		Excludes the allowance for credit losses - loan commitments, which is included in other liabilities, is $10.8 million and $10.7 million as of September 30, 2020 and June 30, 2020, respectively.
	(5) See non-GAAP financial measures for additional information relating to the calculation of this ratio.

 

 

	NON-GAAP FINANCIAL MEASURES													Page 12
	The following non-GAAP financial measures used by WesBanco provide information useful to investors in understanding WesBanco's operating performance and trends, and facilitate comparisons with the performance of WesBanco's peers. The following tables summarize the non-GAAP financial measures derived from amounts reported in WesBanco's financial statements.
			Three Months Ended										Year to Date
			Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,		Sept. 30,
	(unaudited, dollars in thousands, except shares and per share amounts)		2020		2020		2020		2019		2019		2020	2019
	Return on average assets, excluding after-tax restructuring and merger-related expenses:
		Net income	$              41,305		$              4,488		$           23,396		$           36,376		$           37,347		$           69,189	$      122,497
		Plus: after-tax restructuring and merger-related expenses  (1)	2,850		370		4,080		9,102		1,334		7,300	3,852
		Net income excluding after-tax restructuring and merger-related expenses	44,155		4,858		27,476		45,478		38,681		76,489	126,349
		Average total assets	$        16,719,717		$      16,715,211		$    15,784,939		$    13,919,430		$    12,488,153		$     16,407,765	$  12,496,018
	Return on average assets, excluding after-tax restructuring and merger-related expenses (annualized)  (2)		1.05%		0.12%		0.70%		1.30%		1.23%		0.62%	1.35%
	Return on average equity, excluding after-tax restructuring and merger-related expenses:
		Net income	$              41,305		$              4,488		$           23,396		$           36,376		$           37,347		$           69,189	$      122,497
		Plus: after-tax restructuring and merger-related expenses  (1)	2,850		370		4,080		9,102		1,334		7,300	3,852
		Net income excluding after-tax restructuring and merger-related expenses z	44,155		4,858		27,476		45,478		38,681		76,489	126,349
		Average total shareholders' equity	2,662,513		2,602,938		2,594,069		2,329,121		2,097,534		2,619,996	2,050,634
	Return on average equity, excluding after-tax  restructuring and merger-related expenses (annualized)  (2)		6.60%		0.75%		4.26%		7.75%		7.32%		3.90%	8.24%
	Return on average tangible equity:
		Net income	$              41,305		$              4,488		$           23,396		$           36,376		$           37,347		$           69,189	$      122,497
		Plus: amortization of intangibles (1)	2,643		2,658		2,665		2,304		1,932		7,967	5,865
		Net income before amortization of intangibles	43,948		7,146		26,061		38,680		39,279		77,156	128,362
		Average total shareholders' equity	2,662,513		2,602,938		2,594,069		2,329,121		2,097,534		2,619,996	2,050,634
		Less: average goodwill and other intangibles, net of def. tax liability	(1,150,549)		(1,152,856)		(1,112,327)		(997,658)		(904,204)		(1,138,621)	(904,489)
		Average tangible equity	$          1,511,964		$        1,450,082		$      1,481,742		$      1,331,463		$      1,193,330		$       1,481,375	$   1,146,145
	Return on average tangible equity (annualized)  (2)		11.56%		1.98%		7.07%		11.53%		13.06%		6.96%	14.97%
		Average common tangible equity	$          1,431,657		$        1,450,082		$      1,481,742		$      1,331,463		$      1,193,330		$       1,454,411	$   1,146,145
	Return on average common tangible equity (annualized)  (2)		12.21%		1.98%		7.07%		11.53%		13.06%		7.09%	14.97%
	Return on average tangible equity, excluding after-tax restructuring and merger-related expenses:
		Net income	$              41,305		$              4,488		$           23,396		$           36,376		$           37,347		$           69,189	$      122,497
		Plus: after-tax  restructuring and merger-related expenses  (1)	2,850		370		4,080		9,102		1,334		7,300	3,852
		Plus: amortization of intangibles  (1)	2,643		2,658		2,665		2,304		1,932		7,967	5,865
		Net income before amortization of intangibles and excluding
		after-tax  restructuring and merger-related expenses	46,798		7,516		30,141		47,782		40,613		84,456	132,214
		Average total shareholders' equity	2,662,513		2,602,938		2,594,069		2,329,121		2,097,534		2,619,996	2,050,634
		Less: average goodwill and other intangibles, net of def. tax liability	(1,150,549)		(1,152,856)		(1,112,327)		(997,658)		(904,204)		(1,138,621)	(904,489)
		Average tangible equity	$          1,511,964		$        1,450,082		$      1,481,742		$      1,331,463		$      1,193,330		$       1,481,375	$   1,146,145
	Return on average tangible equity, excluding after-tax  restructuring and merger-related expenses (annualized)  (2)		12.31%		2.08%		8.18%		14.24%		13.50%		7.62%	15.42%
		Average tangible common equity	$          1,431,657		$        1,450,082		$      1,481,742		$      1,331,463		$      1,193,330		$       1,454,411	$   1,146,145
	Return on average tangible common equity, excluding after-tax restructuring and merger-related expenses (annualized)  (2)		13.00%		2.08%		8.18%		14.24%		13.50%		7.76%	15.42%
	Efficiency ratio:
		Non-interest expense	$              89,943		$            85,502		$           91,333		$           92,556		$           73,268		$         266,779	$      219,652
		Less: restructuring and merger-related expense	(3,608)		(468)		(5,164)		(11,522)		(1,688)		(9,241)	(4,876)
		Non-interest expense excluding restructuring and merger-related expense	86,335		85,034		86,169		81,034		71,580		257,538	214,776
		Net interest income on a fully taxable equivalent basis	121,705		120,156		121,346		108,177		97,385		363,208	297,046
		Non-interest income	34,612		32,860		28,009		30,838		26,950		95,481	85,878
		Net interest income on a fully taxable equivalent basis plus non-interest income	$            156,317		$           153,016		$         149,355		$         139,015		$         124,335		$         458,689	$      382,924
		Efficiency Ratio	55.23%		55.57%		57.69%		58.29%		57.57%		56.15%	56.09%
	Net income, excluding after-tax  restructuring and merger-related expenses:
		Net income	$              41,305		$              4,488		$           23,396		$           36,376		$           37,347		$           69,189	$      122,497
		Add: After-tax  restructuring and merger-related expenses (1)	2,850		370		4,080		9,102		1,334		7,300	3,852
	Net income, excluding after-tax restructuring and merger-related expenses		$              44,155		$              4,858		$           27,476		$           45,478		$           38,681		$           76,489	$      126,349
	Net Income, excluding after-tax  restructuring and merger-related expenses per diluted share:
		Net income per diluted share	$                  0.61		$                0.07		$              0.35		$              0.60		$              0.68		$               1.03	$            2.24
		Add: After-tax restructuring and merger-related expenses per diluted share (1)	0.05		(0.00)		0.06		0.15		0.03		0.11	0.07
	Net income, excluding after-tax restructuring and merger-related expenses per diluted share		$                  0.66		$                0.07		$              0.41		$              0.75		$              0.71		$               1.14	$            2.31
			Period End
			Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,
			2020		2020		2020		2019		2019
	Tangible common book value per share:
		Total shareholders' equity	$          2,732,966		$        2,569,521		$      2,586,060		$      2,593,921		$      2,101,269
		Less:  goodwill and other intangible assets, net of def. tax liability	(1,150,939)		(1,151,523)		(1,154,033)		(1,132,262)		(904,256)
		Less: preferred shareholders' equity	(144,529)		-		-		-		-
		Tangible common equity	1,437,498		1,417,998		1,432,027		1,461,659		1,197,013
		Common shares outstanding	67,216,012		67,211,192		67,058,155		67,824,428		54,691,225
	Tangible common book value per share		$                21.39		$              21.10		$             21.36		$             21.55		$             21.89
	Tangible common equity to tangible assets:
		Total shareholders' equity	$          2,732,966		$        2,569,521		$      2,586,060		$      2,593,921		$      2,101,269
		Less:  goodwill and other intangible assets, net of def. tax liability	(1,150,939)		(1,151,523)		(1,154,033)		(1,132,262)		(904,256)
		Tangible equity	1,582,027		1,417,998		1,432,027		1,461,659		1,197,013
		Less: preferred shareholders' equity	(144,529)		-		-		-		-
		Tangible common equity	1,437,498		1,417,998		1,432,027		1,461,659		1,197,013
		Total assets	16,552,140		16,755,395		15,995,572		15,720,112		12,593,887
		Less:  goodwill and other intangible assets, net of def. tax liability	(1,150,939)		(1,151,523)		(1,154,033)		(1,132,262)		(904,256)
		Tangible assets	$        15,401,201		$      15,603,872		$    14,841,539		$    14,587,850		$    11,689,631
	Tangible equity to tangible assets		10.27%		9.09%		9.65%		10.02%		10.24%
	Tangible common equity to tangible assets		9.33%		9.09%		9.65%		10.02%		10.24%
	(1) Tax effected at 21% for all periods presented.
	(2) The ratios are annualized by utilizing actual numbers of days in the quarter versus the year.

 

 

	ADDITONAL NON-GAAP FINANCIAL MEASURES													Page 13
	The following non-GAAP financial measures used by WesBanco provide information useful to investors in understanding WesBanco's operating performance and trends, and facilitate comparisons with the performance of WesBanco's peers. The following tables summarize the non-GAAP financial measures derived from amounts reported in WesBanco's financial statements.
			Three Months Ended										Year to Date
			Sept. 30,		June 30,		Mar. 31,		Dec. 31,		Sept. 30,		Sept. 30,
	(unaudited, dollars in thousands, except shares and per share amounts)		2020		2020		2020		2019		2019		2020	2019
	Pre-tax, pre-provision income:
		Income before provision for income taxes	$         48,974		$          4,530		$        27,017		$        43,422		$          45,681		$        80,521	$           149,792
		Add: provision for credit losses	16,288		61,841		29,821		1,824		4,121		107,949	9,375
	Pre-tax, pre-provision income		$         65,262		$        66,371		$        56,838		$        45,246		$          49,802		$      188,470	$           159,167
	Pre-tax, pre-provision income, excluding restructuring and merger-related expenses:
		Income before provision for income taxes	$         48,974		$          4,530		$        27,017		$        43,422		$          45,681		$        80,521	$           149,792
		Add: provision for credit losses	16,288		61,841		29,821		1,824		4,121		107,949	9,375
		Add: restructuring and merger-related expenses	3,608		468		5,164		11,522		1,688		9,241	4,876
	Pre-tax, pre-provision income, excluding restructuring and merger-related expenses		$         68,870		$        66,839		$        62,002		$        56,768		$          51,490		$      197,711	$           164,043
	Return on average assets, excluding certain items (1):
		Income before provision for income taxes	$         48,974		$          4,530		$        27,017		$        43,422		$          45,681		$        80,521	$           149,792
		Add: provision for credit losses	16,288		61,841		29,821		1,824		4,121		107,949	9,375
		Add: restructuring and merger-related expenses	3,608		468		5,164		11,522		1,688		9,241	4,876
	Pre-tax, pre-provision income, excluding restructuring and merger-related expenses		68,870		66,839		62,002		56,768		51,490		197,711	164,043
		Average total assets	$   16,719,717		$  16,715,211		$  15,784,939		$  13,919,430		$   12,488,153		$  16,407,765	$      12,496,018
	Return on average assets, excluding certain items (annualized)  (1) (2)		1.64%		1.61%		1.58%		1.62%		1.64%		1.61%	1.76%
	Return on average equity, excluding certain items (1):
		Income before provision for income taxes	$         48,974		$          4,530		$        27,017		$        43,422		$          45,681		$        80,521	$           149,792
		Add: provision for credit losses	16,288		61,841		29,821		1,824		4,121		107,949	9,375
		Add: restructuring and merger-related expenses	3,608		468		5,164		11,522		1,688		9,241	4,876
	Pre-tax, pre-provision income, excluding restructuring and merger-related expenses		68,870		66,839		62,002		56,768		51,490		197,711	164,043
		Average total shareholders' equity	2,662,513		2,602,938		2,594,069		2,329,121		2,097,534		2,619,996	2,050,634
	Return on average equity, excluding certain items (annualized) (1) (2)		10.29%		10.33%		9.61%		9.67%		9.74%		10.08%	10.70%
	Return on average tangible equity, excluding certain items (1):
		Income before provision for income taxes	$         48,974		$          4,530		$        27,017		$        43,422		$          45,681		$        80,521	$           149,792
		Add: provision for credit losses	16,288		61,841		29,821		1,824		4,121		107,949	9,375
		Add: amortization of intangibles	3,346		3,365		3,374		2,916		2,446		10,085	7,424
		Add: restructuring and merger-related expenses	3,608		468		5,164		11,522		1,688		9,241	4,876
	Income before provision, restructuring & merger-related expenses and amortization of intangibles		72,216		70,204		65,376		59,684		53,936		207,796	171,467
		Average total shareholders' equity	2,662,513		2,602,938		2,594,069		2,329,121		2,097,534		2,619,996	2,050,634
		Less: average goodwill and other intangibles, net of def. tax liability	(1,150,549)		(1,152,856)		(1,112,327)		(997,658)		(904,204)		(1,138,621)	(904,489)
		Average tangible equity	$     1,511,964		$   1,450,082		$   1,481,742		$   1,331,463		$     1,193,330		$   1,481,375	$        1,146,145
	Return on average tangible equity, excluding certain items (annualized) (1) (2)		19.00%		19.47%		17.75%		17.78%		17.93%		18.74%	20.00%
		Average tangible common equity	$     1,431,657		$   1,450,082		$   1,481,742		$   1,331,463		$     1,193,330		$   1,454,411	$        1,146,145
	Return on average tangible common equity, excluding certain items (annualized) (1) (2)		20.07%		19.47%		17.75%		17.78%		17.93%		19.08%	20.00%
	(1) Certain items excluded from the calculation consist of credit provision, tax provision and restructuring & merger-related expenses.
	(2) The ratios are annualized by utilizing actual numbers of days in the quarter versus the year.

 

 

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SOURCE WesBanco, Inc.