WSBCP WesBanco Inc

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 26, 2024

 

 

WESBANCO, INC.

(Exact name of Registrant as Specified in Its Charter)

 

 

West Virginia			001-39442	55-0571723
(State or Other Jurisdiction of Incorporation)			(Commission File Number)	(IRS Employer Identification No.)
1 Bank Plaza
Wheeling, West Virginia				26003
(Address of Principal Executive Offices)				(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: 304 234-9000

 

Former Name or Former Address, if Changed Since Last Report : Not Applicable

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock $2.0833 Par Value		WSBC		Nasdaq Global Select Market
Depositary Shares (each representing 1/40th interest in a share of 6.75% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A)		WSBCP		Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

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Item 2.02 Results of Operations and Financial Condition

Wesbanco, Inc. issued a press release and earnings call presentation today announcing earnings for the three and six months ended June 30, 2024. The press release is attached as Exhibit 99.1 and the earnings call presentation is attached as Exhibit 99.2 to this report.

Wesbanco, Inc. will host a conference call to discuss the Company's financial results for the second quarter of 2024 on Friday, July 26, 2024 at 10:00 a.m. ET.

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 1-412-902-4290 for international callers, and asking to be joined into the WesBanco call. Please log in or dial in at least 10 minutes prior to the start time to ensure a connection.

A replay of the conference call will be available by dialing 877-344-7529, 855-669-9658 for Canadian callers, or 1-412-317-0088 for international callers, and providing the access code of 1675057. The replay will begin at approximately 12:00 p.m. ET on July 26, 2024 and end at 12 a.m. ET on August 9, 2024. An archive of the webcast will be available for one year on the Investor Relations section of the Company’s website (www.wesbanco.com).

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits:

99.1 - Press release dated July 26, 2024 announcing earnings for the three and six months ended June 30, 2024.

99.2 – Second quarter 2024 earnings conference call presentation.

104 - Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

			Wesbanco, Inc. (registrant)
Date:	July 26, 2024	By:	/s/ Daniel K. Weiss, Jr.
			Daniel K. Weiss, Jr. Senior Executive Vice President and Chief Financial Officer

 

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WesBanco Announces Second Quarter 2024 Financial Results

Marks eight consecutive quarters of strong year-over-year loan growth averaging 9%

 

Wheeling, WVa. (July 26, 2024) – WesBanco, Inc. (“WesBanco”) (Nasdaq: WSBC), a diversified, multi-state bank holding company, today announced net income and related earnings per share for the three and six months ended June 30, 2024. Net income available to common shareholders for the second quarter of 2024 was $26.4 million, with diluted earnings per share of $0.44, compared to $42.3 million and $0.71 per diluted share, respectively, for the second quarter of 2023. For the six months ended June 30, 2024, net income was $59.5 million, or $1.00 per diluted share, compared to $82.2 million, or $1.38 per diluted share, for the 2023 period. As noted in the following table, net income available to common shareholders, excluding after-tax restructuring and merger-related expenses, for the six months ended June 30, 2024 was $62.5 million, or $1.05 per diluted share, as compared to $84.7 million, or $1.43 per diluted share (non-GAAP measures).

 

		For the Three Months Ended June 30,																For the Six Months Ended June 30,
		2024								2023								2024								2023
(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)		$	29,369			$	0.49			$	42,377			$	0.71			$	62,530			$	1.05			$	84,677			$	1.43
Less: After tax restructuring and merger-related expenses			(2,984	)			(0.05	)			(28	)			-				(2,984	)			(0.05	)			(2,519	)			(0.05	)
Net income available to common shareholders (GAAP)		$	26,385			$	0.44			$	42,349			$	0.71			$	59,546			$	1.00			$	82,158			$	1.38
(1) See non-GAAP financial measures for additional information relating to these items.

 

Financial and operational highlights during the quarter ended June 30, 2024:

 

“WesBanco sustained its positive momentum in 2024 with solid second-quarter results characterized by continued loan and deposit growth. We maintained a diligent focus on cost control, while making strategic investments in our company to secure our long-term success,” said Jeff Jackson, President and Chief Executive Officer, WesBanco. “The strength of our balance sheet and long-term growth strategies, supported by the high engagement of our diverse and talented teams, as evidenced by our inclusion in Newsweek’s America’s Greatest Workplaces list, position us well for continued growth in the second half of 2024.”

 

 

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Balance Sheet

As of June 30, 2024, portfolio loans were $12.3 billion, which increased $1.1 billion, or 10.1%, year-over-year driven by strong performance from our commercial and residential lending teams. Total commercial loans of $8.8 billion increased 11.5% year-over-year and 15.2% quarter-over-quarter annualized. Commercial loan growth continues to reflect the benefit of our commercial banker hiring and loan production office strategy, as well as lower commercial real estate payoffs. Total residential lending reflects increased mortgage origination production with lower staffing levels, as well as increased home equity line of credit usage.

 

Deposits, as of June 30, 2024, were $13.4 billion, up 4.4% from June 30, 2023 and up 2.0% from December 31, 2023, reflecting the benefit of deposit gathering and retention efforts by our retail and commercial teams. The composition of total deposits continues to have some mix shift, reflecting the impact of the significant increase in the federal funds rate; however, total demand deposits continue to represent 55% of total deposits, with the non-interest bearing component representing 28%, which remains consistent with the percentage range prior to the pandemic.

 

Credit Quality

As of June 30, 2024, total loans past due, criticized and classified loans, non-performing loans, and non-performing assets as percentages of the loan portfolio and total assets have remained low, from a historical perspective, and within a consistent range through the last two years. Criticized and classified loans as a percent of the loan portfolio decreased 15 basis points quarter-over-quarter to 2.15%, while non-performing assets as a percentage of total assets remained consistent with the prior quarter and year periods at 0.20%. The allowance for credit losses to total portfolio loans at June 30, 2024 increased to 1.11% of total loans, or $136.5 million. The increase in the allowance for credit losses and resulting $10.5 million provision for credit losses in the second quarter was due primarily to strong loan growth, higher unemployment assumptions, and a specific reserve for an individual C&I loan. Excluded from the allowance for credit losses and related coverage ratio are fair market value adjustments on previously acquired loans representing 0.10% of total loans.

 

Net Interest Margin and Income

The net interest margin of 2.95% for the second quarter of 2024 increased 3 basis points sequentially as higher loan yields began to outpace higher funding costs. On a year-over-year basis, the net interest margin decreased 23 basis points primarily due to higher funding costs from the remix of non-interest bearing deposits into higher tier money market and certificate of deposit accounts. Deposit funding costs were 274 basis points for the second quarter of 2024, and, when including non-interest deposits, deposit funding costs were 195 basis points. Accretion from acquisitions benefited the second quarter net interest margin by 2 basis points, as compared to 3 basis points in the prior year period.

 

Net interest income for the second quarter of 2024 was $116.6 million, a decrease of $5.0 million, or 4.1% year-over-year, reflecting the impact of rising rates on funding costs more than offsetting loan growth and higher loan and securities yields. For the six months ended June 30, 2024, net interest income of $230.6 million decreased $15.3 million, or 6.2%, primarily due to the reasons discussed for the three-month period comparison.

 

Non-Interest Income

For the second quarter of 2024, non-interest income of $31.4 million decreased $0.5 million, or 1.5%, from the second quarter of 2023. This decrease was primarily due to lower net swap fee and valuation income, as well as higher net gains on other real estate owned and other assets in the prior year period. Gross swap fees were $1.8 million in the second quarter, as compared to $2.4 million in the prior year period. Service charges on deposits increased $0.9 million year-over-year, reflecting fee income from new products and services and increased general consumer spending. Mortgage banking income increased $0.5 million year-over-year due to an 85 basis point improvement in the net gain on sale margin for residential mortgages sold in the secondary market.

 

Primarily reflecting the items discussed above, as well as higher trust fees, non-interest income, for the six months ended June 30, 2024, increased $2.5 million, or 4.2%, year-over-year to $62.0 million. Trust fees increased $1.0 million year-over-year due to a 10% increase in trust assets, driven by both market value adjustments and organic growth.

 

Non-Interest Expense

Non-interest expense, excluding restructuring and merger-related costs, for the three months ended June 30, 2024 were $98.6 million, a $2.2 million, or 2.3%, increase year-over-year primarily due to increases in other operating expenses and equipment and software expenses. Other operating expenses increased $1.8 million primarily due to higher costs and fees in support of loan growth and higher other miscellaneous expenses. Equipment and software expense increased $1.6 million reflecting the impact of the prior year ATM upgrades, which were phased in throughout the prior year. Salaries and wages decreased $0.5 million compared to the prior year period due to lower staffing levels associated with efficiency improvements in the mortgage and branch staffing models, partially offset by normal compensation merit adjustments. Employee benefits decreased $0.9 million due to a lower health insurance costs driven by lower staffing levels, as compared to the prior year period.

 

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Excluding restructuring and merger-related expenses, non-interest expense during the first half of 2024 of $195.8 million increased $6.4 million, or 3.4%, compared to the prior year period, due primarily to other operating expenses and equipment and software expense, as described above, and higher FDIC insurance expense. FDIC insurance increased $1.2 million year-over-year due to due to an increase in the minimum rate for all banks.

 

Capital

WesBanco continues to maintain what we believe are strong regulatory capital ratios, as both consolidated and bank-level regulatory capital ratios are well above the applicable “well-capitalized” standards promulgated by bank regulators and the BASEL III capital standards. At June 30, 2024, Tier I leverage was 9.72%, Tier I risk-based capital ratio was 11.58%, common equity Tier 1 capital ratio (“CET 1”) was 10.58%, and total risk-based capital was 14.45%. In addition, the tangible common equity to tangible assets ratio was 7.52%.

 

Conference Call and Webcast

WesBanco will host a conference call to discuss the Company's financial results for the second quarter of 2024 at 10:00 a.m. ET on Friday, July 26, 2024. Interested parties can access the live webcast of the conference call through the Investor Relations section of the Company's website, www.wesbanco.com. Participants can also listen to the conference call by dialing 888-347-6607, 855-669-9657 for Canadian callers, or 1-412-902-4290 for international callers, and asking to be joined into the WesBanco call. Please log in or dial in at least 10 minutes prior to the start time to ensure a connection.

 

A replay of the conference call will be available by dialing 877-344-7529, 855-669-9658 for Canadian callers, or 1-412-317-0088 for international callers, and providing the access code of 1675057. The replay will begin at approximately 12:00 p.m. ET on July 26, 2024 and end at 12 a.m. ET on August 9, 2024. An archive of the webcast will be available for one year on the Investor Relations section of the Company’s website (www.wesbanco.com).

Forward-Looking Statements

Forward-looking statements in this report relating to WesBanco’s plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The information contained in this report should be read in conjunction with WesBanco’s Form 10-K for the year ended December 31, 2023 and documents subsequently filed by WesBanco with the Securities and Exchange Commission (“SEC”) including WesBanco’s Form 10-Q for the quarter ended March 31, 2024, which are available at the SEC’s website, www.sec.gov or at WesBanco’s website, www.WesBanco.com. Investors are cautioned that forward-looking statements, which are not historical fact, involve risks and uncertainties, including those detailed in WesBanco’s most recent Annual Report on Form 10-K filed with the SEC under “Risk Factors” in Part I, Item 1A. Such statements are subject to important factors that could cause actual results to differ materially from those contemplated by such statements, including, without limitation, the effects of changing regional and national economic conditions, changes in interest rates, spreads on earning assets and interest-bearing liabilities, and associated interest rate sensitivity; sources of liquidity available to WesBanco and its related subsidiary operations; potential future credit losses and the credit risk of commercial, real estate, and consumer loan customers and their borrowing activities; actions of the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Consumer Financial Protection Bureau, the SEC, the Financial Institution Regulatory Authority, the Municipal Securities Rulemaking Board, the Securities Investors Protection Corporation, and other regulatory bodies; potential legislative and federal and state regulatory actions and reform, including, without limitation, the impact of the implementation of the Dodd-Frank Act; adverse decisions of federal and state courts; fraud, scams and schemes of third parties; cyber-security breaches; competitive conditions in the financial services industry; rapidly changing technology affecting financial services; marketability of debt instruments and corresponding impact on fair value adjustments; and/or other external developments materially impacting WesBanco’s operational and financial performance. WesBanco does not assume any duty to update forward-looking statements.

 

Non-GAAP Financial Measures

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

 

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About WesBanco, Inc.

With over 150 years as a community-focused, regional financial services partner, WesBanco Inc. (NASDAQ: WSBC) and its subsidiaries build lasting prosperity through relationships and solutions that empower our customers for success in their financial journeys. Customers across our eight-state footprint choose WesBanco for the comprehensive range and personalized delivery of our retail and commercial banking solutions, as well as trust, brokerage, wealth management and insurance services, all designed to advance their financial goals. Through the strength of our teams, we leverage large bank capabilities and local focus to help make every community we serve a better place for people and businesses to thrive. Headquartered in Wheeling, West Virginia, WesBanco has $18.1 billion in total assets, with our Trust and Investment Services holding $5.6 billion of assets under management and securities account values (including annuities) of $1.8 billion through our broker/dealer, as of June 30, 2024. Learn more at www.wesbanco.com and follow @WesBanco on Facebook, LinkedIn and Instagram.

SOURCE: WesBanco, Inc.

WesBanco Company Contact:

John H. Iannone

Senior Vice President, Investor Relations

304-905-7021

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WESBANCO, INC.
Consolidated Selected Financial Highlights
(unaudited, dollars in thousands, except shares and per share amounts)
			For the Three Months Ended												For the Six Months Ended
	STATEMENT OF INCOME		June 30,												June 30,
			2024				2023				% Change				2024				2023				% Change
	Interest and dividend income
	Loans, including fees		$	175,361			$	145,741				20.3			$	342,335			$	279,147				22.6
	Interest and dividends on securities:
	Taxable			16,929				18,483				(8.4	)			34,334				37,569				(8.6	)
	Tax-exempt			4,556				4,723				(3.5	)			9,142				9,513				(3.9	)
	Total interest and dividends on securities			21,485				23,206				(7.4	)			43,476				47,082				(7.7	)
	Other interest income			6,147				7,108				(13.5	)			12,516				10,380				20.6
	Total interest and dividend income			202,993				176,055				15.3				398,327				336,609				18.3
	Interest expense
	Interest bearing demand deposits			26,925				17,203				56.5				52,516				28,309				85.5
	Money market deposits			18,443				7,220				155.4				34,557				11,472				201.2
	Savings deposits			7,883				5,860				34.5				15,549				9,860				57.7
	Certificates of deposit			11,982				2,906				312.3				22,229				4,109				441.0
	Total interest expense on deposits			65,233				33,189				96.6				124,851				53,750				132.3
	Federal Home Loan Bank borrowings			16,227				16,713				(2.9	)			33,227				28,013				18.6
	Other short-term borrowings			896				492				82.1				1,570				909				72.7
	Subordinated debt and junior subordinated debt			4,044				4,094				(1.2	)			8,119				8,039				1.0
	Total interest expense			86,400				54,488				58.6				167,767				90,711				84.9
	Net interest income			116,593				121,567				(4.1	)			230,560				245,898				(6.2	)
	Provision for credit losses			10,541				3,028				248.1				14,555				6,605				120.4
	Net interest income after provision for credit losses			106,052				118,539				(10.5	)			216,005				239,293				(9.7	)
	Non-interest income
	Trust fees			7,303				6,918				5.6				15,385				14,412				6.8
	Service charges on deposits			7,111				6,232				14.1				13,895				12,401				12.0
	Digital Banking Income			5,040				5,010				0.6				9,745				9,615				1.4
	Net swap fee and valuation income			1,776				2,612				(32.0	)			3,339				3,411				(2.1	)
	Net securities brokerage revenue			2,601				2,523				3.1				5,149				5,098				1.0
	Bank-owned life insurance			2,791				3,189				(12.5	)			4,859				5,149				(5.6	)
	Mortgage banking income			1,069				601				77.9				1,762				1,027				71.6
	Net securities gains			135				205				(34.1	)			672				350				92.0
	Net gains on other real estate owned and other assets			34				871				(96.1	)			188				1,104				(83.0	)
	Other income			3,495				3,680				(5.0	)			6,990				6,926				0.9
	Total non-interest income			31,355				31,841				(1.5	)			61,984				59,493				4.2
	Non-interest expense
	Salaries and wages			43,991				44,471				(1.1	)			86,988				86,422				0.7
	Employee benefits			10,579				11,511				(8.1	)			22,763				23,570				(3.4	)
	Net occupancy			6,309				6,132				2.9				12,932				12,775				1.2
	Equipment and software			10,457				8,823				18.5				20,465				17,885				14.4
	Marketing			2,371				2,763				(14.2	)			4,256				5,088				(16.4	)
	FDIC insurance			3,523				2,871				22.7				6,971				5,755				21.1
	Amortization of intangible assets			2,072				2,282				(9.2	)			4,164				4,583				(9.1	)
	Restructuring and merger-related expense			3,777				35			NM					3,777				3,188				18.5
	Other operating expenses			19,313				17,549				10.1				37,269				33,294				11.9
	Total non-interest expense			102,392				96,437				6.2				199,585				192,560				3.6
	Income before provision for income taxes			35,015				53,943				(35.1	)			78,404				106,226				(26.2	)
	Provision for income taxes			6,099				9,063				(32.7	)			13,795				19,005				(27.4	)
	Net Income			28,916				44,880				(35.6	)			64,609				87,221				(25.9	)
	Preferred stock dividends			2,531				2,531				-				5,063				5,063				-
	Net income available to common shareholders		$	26,385			$	42,349				(37.7	)		$	59,546			$	82,158				(27.5	)
	Taxable equivalent net interest income		$	117,804			$	122,822				(4.1	)		$	232,990			$	248,427				(6.2	)
	Per common share data
	Net income per common share - basic		$	0.44			$	0.71				(38.0	)		$	1.00			$	1.39				(28.1	)
	Net income per common share - diluted			0.44				0.71				(38.0	)			1.00				1.38				(27.5	)
	Net income per common share - diluted, excluding certain items (1)(2)			0.49				0.71				(31.0	)			1.05				1.43				(26.6	)
	Dividends declared			0.36				0.35				2.9				0.72				0.70				2.9
	Book value (period end)			40.28				39.10				3.0				40.28				39.10				3.0
	Tangible book value (period end) (1)			21.45				20.08				6.8				21.45				20.08				6.8
	Average common shares outstanding - basic			59,521,872				59,263,949				0.4				59,452,315				59,240,958				0.4
	Average common shares outstanding - diluted			59,656,429				59,385,847				0.5				59,592,960				59,389,314				0.3
	Period end common shares outstanding			59,579,310				59,355,062				0.4				59,579,310				59,355,062				0.4
	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

 

 

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WESBANCO, INC.
Consolidated Selected Financial Highlights
(unaudited, dollars in thousands)
	Selected ratios
		For the Six Months Ended
		June 30,
		2024				2023				% Change
	Return on average assets		0.67		%		0.97		%		(30.93	)	%
	Return on average assets, excluding after-tax restructuring and merger-related expenses (1)		0.71				1.00				(29.00	)
	Return on average equity		4.71				6.69				(29.60	)
	Return on average equity, excluding after-tax restructuring and merger-related expenses (1)		4.94				6.90				(28.41	)
	Return on average tangible equity (1)		8.89				12.86				(30.87	)
	Return on average tangible equity, excluding after-tax restructuring and merger-related expenses (1)		9.31				13.23				(29.63	)
	Return on average tangible common equity (1)		9.90				14.40				(31.25	)
	Return on average tangible common equity, excluding after-tax restructuring and merger-related expenses (1)		10.37				14.82				(30.03	)
	Yield on earning assets (2)		5.04				4.46				13.00
	Cost of interest bearing liabilities		3.05				1.84				65.76
	Net interest spread (2)		1.99				2.62				(24.05	)
	Net interest margin (2)		2.93				3.27				(10.40	)
	Efficiency (1) (2)		66.38				61.50				7.93
	Average loans to average deposits		89.04				84.46				5.42
	Annualized net loan charge-offs/average loans		0.14				0.05				180.00
	Effective income tax rate		17.59				17.89				(1.68	)

 

	For the Three Months Ended
	June 30,				Mar. 31,				Dec. 31,				Sept. 30,				June 30,
	2024				2024				2023				2023				2023
Return on average assets		0.59		%		0.75		%		0.74		%		0.78		%		0.98		%
Return on average assets, excluding after-tax restructuring and merger-related expenses (1)		0.66				0.75				0.74				0.80				0.98
Return on average equity		4.17				5.24				5.21				5.49				6.81
Return on average equity, excluding after-tax restructuring and merger-related expenses (1)		4.65				5.24				5.21				5.57				6.82
Return on average tangible equity (1)		7.93				9.85				10.11				10.60				12.98
Return on average tangible equity, excluding after-tax restructuring and merger-related expenses (1)		8.78				9.85				10.11				10.75				12.99
Return on average tangible common equity (1)		8.83				10.96				11.32				11.87				14.52
Return on average tangible common equity, excluding after-tax restructuring and merger-related expenses (1)		9.77				10.96				11.32				12.03				14.53
Yield on earning assets (2)		5.11				4.98				4.88				4.72				4.59
Cost of interest bearing liabilities		3.12				2.98				2.76				2.52				2.15
Net interest spread (2)		1.99				2.00				2.12				2.20				2.44
Net interest margin (2)		2.95				2.92				3.02				3.03				3.18
Efficiency (1) (2)		66.11				66.65				66.75				64.95				62.33
Average loans to average deposits		89.40				88.67				87.07				86.79				85.44
Annualized net loan charge-offs and recoveries /average loans		0.07				0.20				0.06				0.01				0.02
Effective income tax rate		17.42				17.74				19.66				16.83				16.80
Trust and Investment Services assets under management (3)	$	5,633			$	5,601			$	5,360			$	4,982			$	5,127
Broker-dealer securities account values (including annuities) (3)	$	1,780			$	1,751			$	1,686			$	1,600			$	1,596
(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.
(3) Represents market value at period end, in millions.

 

---

WESBANCO, INC.
Consolidated Selected Financial Highlights
(unaudited, dollars in thousands, except shares)
																	% Change
			June 30,											December 31,			December 31, 2023
	Balance sheets		2024				2023				% Change			2023			to June 30, 2024
	Assets
	Cash and due from banks		$	173,816			$	178,057				(2.4	)	$	158,504			9.7
	Due from banks - interest bearing			312,973				384,261				(18.6	)		436,879			(28.4	)
	Securities:
	Equity securities, at fair value			13,091				11,948				9.6			12,320			6.3
	Available-for-sale debt securities, at fair value			2,102,123				2,329,222				(9.7	)		2,194,329			(4.2	)
	Held-to-maturity debt securities (fair values of $1,028,432; $1,072,229 and $1,069,159, respectively)			1,179,684				1,224,470				(3.7	)		1,199,527			(1.7	)
	Allowance for credit losses - held-to-maturity debt securities			(163	)			(193	)			15.5			(192	)		15.1
	Net held-to-maturity debt securities			1,179,521				1,224,277				(3.7	)		1,199,335			(1.7	)
	Total securities			3,294,735				3,565,447				(7.6	)		3,405,984			(3.3	)
	Loans held for sale			25,433				28,970				(12.2	)		16,354			55.5
	Portfolio loans:
	Commercial real estate			6,998,888				6,295,467				11.2			6,565,448			6.6
	Commercial and industrial			1,760,479				1,558,491				13.0			1,670,659			5.4
	Residential real estate			2,506,957				2,341,928				7.0			2,438,574			2.8
	Home equity			770,599				701,824				9.8			734,219			5.0
	Consumer			220,588				232,254				(5.0	)		229,561			(3.9	)
	Total portfolio loans, net of unearned income			12,257,511				11,129,964				10.1			11,638,461			5.3
	Allowance for credit losses - loans			(136,509	)			(120,166	)			(13.6	)		(130,675	)		(4.5	)
	Net portfolio loans			12,121,002				11,009,798				10.1			11,507,786			5.3
	Premises and equipment, net			222,266				219,934				1.1			233,571			(4.8	)
	Accrued interest receivable			79,759				69,773				14.3			77,435			3.0
	Goodwill and other intangible assets, net			1,128,103				1,136,773				(0.8	)		1,132,267			(0.4	)
	Bank-owned life insurance			358,682				355,204				1.0			355,033			1.0
	Other assets			411,606				408,737				0.7			388,561			5.9
	Total Assets		$	18,128,375			$	17,356,954				4.4		$	17,712,374			2.3
	Liabilities
	Deposits:
	Non-interest bearing demand		$	3,826,249			$	4,286,235				(10.7	)	$	3,962,592			(3.4	)
	Interest bearing demand			3,505,651				3,273,745				7.1			3,463,443			1.2
	Money market			2,283,294				1,685,667				35.5			2,017,713			13.2
	Savings deposits			2,429,241				2,655,680				(8.5	)		2,493,254			(2.6	)
	Certificates of deposit			1,387,938				960,107				44.6			1,231,702			12.7
	Total deposits			13,432,373				12,861,434				4.4			13,168,704			2.0
	Federal Home Loan Bank borrowings			1,475,000				1,380,000				6.9			1,350,000			9.3
	Other short-term borrowings			105,757				101,286				4.4			105,893			(0.1	)
	Subordinated debt and junior subordinated debt			279,193				281,854				(0.9	)		279,078			0.0
	Total borrowings			1,859,950				1,763,140				5.5			1,734,971			7.2
	Accrued interest payable			15,393				8,869				73.6			11,121			38.4
	Other liabilities			276,380				258,513				6.9			264,516			4.5
	Total Liabilities			15,584,096				14,891,956				4.6			15,179,312			2.7
	Shareholders' Equity
	Preferred stock, no par value; 1,000,000 shares authorized; 150,000 shares 6.75% non-cumulative perpetual preferred stock, Series A, liquidation preference $150.0 million, issued and outstanding, respectively			144,484				144,484				-			144,484			-
	Common stock, $2.0833 par value; 100,000,000 shares authorized; 68,081,306 shares issued; 59,579,310, 59,355,062 and 59,376,435 shares outstanding, respectively			141,834				141,834				-			141,834			-
	Capital surplus			1,630,830				1,630,963				(0.0	)		1,635,859			(0.3	)
	Retained earnings			1,159,217				1,118,135				3.7			1,142,586			1.5
	Treasury stock (8,501,996, 8,726,224 and 8,704,871 shares - at cost, respectively)			(294,818	)			(303,770	)			2.9			(302,995	)		2.7
	Accumulated other comprehensive loss			(235,208	)			(264,627	)			11.1			(226,693	)		(3.8	)
	Deferred benefits for directors			(2,060	)			(2,021	)			(1.9	)		(2,013	)		(2.3	)
	Total Shareholders' Equity			2,544,279				2,464,998				3.2			2,533,062			0.4
	Total Liabilities and Shareholders' Equity		$	18,128,375			$	17,356,954				4.4		$	17,712,374			2.3

 

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WESBANCO, INC.
Consolidated Selected Financial Highlights
(unaudited, dollars in thousands, except shares)
			June 30,				March 31,
	Balance sheets		2024				2024				% Change
	Assets
	Cash and due from banks		$	173,816			$	138,940				25.1
	Due from banks - interest bearing			312,973				370,729				(15.6	)
	Securities:
	Equity securities, at fair value			13,091				13,074				0.1
	Available-for-sale debt securities, at fair value			2,102,123				2,119,272				(0.8	)
	Held-to-maturity (fair values of $1,028,432; and $1,107,685, respectively)			1,179,684				1,190,010				(0.9	)
	Allowance for credit losses - held-to-maturity debt securities			(163	)			(183	)			10.9
	Net held-to-maturity debt securities			1,179,521				1,189,827				(0.9	)
	Total securities			3,294,735				3,322,173				(0.8	)
	Loans held for sale			25,433				12,472				103.9
	Portfolio loans:
	Commercial real estate			6,998,888				6,754,933				3.6
	Commercial and industrial			1,760,479				1,683,172				4.6
	Residential real estate			2,506,957				2,469,357				1.5
	Home equity			770,599				740,973				4.0
	Consumer			220,588				224,732				(1.8	)
	Total portfolio loans, net of unearned income			12,257,511				11,873,167				3.2
	Allowance for credit losses - loans			(136,509	)			(129,190	)			(5.7	)
	Net portfolio loans			12,121,002				11,743,977				3.2
	Premises and equipment, net			222,266				232,630				(4.5	)
	Accrued interest receivable			79,759				78,564				1.5
	Goodwill and other intangible assets, net			1,128,103				1,130,175				(0.2	)
	Bank-owned life insurance			358,682				357,099				0.4
	Other assets			411,606				385,976				6.6
	Total Assets		$	18,128,375			$	17,772,735				2.0
	Liabilities
	Deposits:
	Non-interest bearing demand		$	3,826,249			$	3,938,610				(2.9	)
	Interest bearing demand			3,505,651				3,529,691				(0.7	)
	Money market			2,283,294				2,189,769				4.3
	Savings deposits			2,429,241				2,499,466				(2.8	)
	Certificates of deposit			1,387,938				1,339,237				3.6
	Total deposits			13,432,373				13,496,773				(0.5	)
	Federal Home Loan Bank borrowings			1,475,000				1,100,000				34.1
	Other short-term borrowings			105,757				72,935				45.0
	Subordinated debt and junior subordinated debt			279,193				279,136				0.0
	Total borrowings			1,859,950				1,452,071				28.1
	Accrued interest payable			15,393				15,929				(3.4	)
	Other liabilities			276,380				269,600				2.5
	Total Liabilities			15,584,096				15,234,373				2.3
	Shareholders' Equity
	Preferred stock, no par value; 1,000,000 shares authorized; 150,000 shares 6.75% non-cumulative perpetual preferred stock, Series A, liquidation preference $150.0 million, issued and outstanding, respectively			144,484				144,484				-
	Common stock, $2.0833 par value; 100,000,000 shares authorized; 68,081,306 shares issued; 59,355,062 and 59,246,569 shares outstanding, respectively			141,834				141,834				-
	Capital surplus			1,630,830				1,636,964				(0.4	)
	Retained earnings			1,159,217				1,154,307				0.4
	Treasury stock (8,726,244 and 8,834,737 shares - at cost, respectively)			(294,818	)			(302,264	)			2.5
	Accumulated other comprehensive loss			(235,208	)			(234,922	)			(0.1	)
	Deferred benefits for directors			(2,060	)			(2,041	)			(0.9	)
	Total Shareholders' Equity			2,544,279				2,538,362				0.2
	Total Liabilities and Shareholders' Equity		$	18,128,375			$	17,772,735				2.0

 

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WESBANCO, INC.
Consolidated Selected Financial Highlights
(unaudited, dollars in thousands)
			For the Three Months Ended June 30,																For the Six Months Ended June 30,
			2024								2023								2024								2023
	Average balance sheet and net interest margin analysis		Average			Average					Average			Average					Average			Average					Average			Average
			Balance			Rate					Balance			Rate					Balance			Rate					Balance			Rate
	Assets
	Due from banks - interest bearing		$	352,986			5.62		%		$	438,604			5.71		%		$	364,127			5.66		%		$	359,466			5.16		%
	Loans, net of unearned income (1)			12,057,831			5.85					11,009,093			5.31					11,907,353			5.78					10,880,328			5.17
	Securities: (2)
	Taxable			2,863,213			2.38					3,198,838			2.32					2,896,040			2.38					3,250,174			2.33
	Tax-exempt (3)			753,151			3.08					786,128			3.05					756,474			3.08					793,425			3.06
	Total securities			3,616,364			2.52					3,984,966			2.46					3,652,514			2.53					4,043,599			2.47
	Other earning assets			56,077			8.71					61,613			5.64					58,499			7.78					53,789			4.44
	Total earning assets (3)			16,083,258			5.11		%			15,494,276			4.59		%			15,982,493			5.04		%			15,337,182			4.46		%
	Other assets			1,807,056								1,800,070								1,814,796								1,796,162
	Total Assets		$	17,890,314							$	17,294,346							$	17,797,289							$	17,133,344
	Liabilities and Shareholders' Equity
	Interest bearing demand deposits		$	3,527,316			3.07		%		$	3,228,799			2.14		%		$	3,514,182			3.01		%		$	3,129,921			1.82		%
	Money market accounts			2,228,070			3.33					1,635,939			1.77					2,157,553			3.22					1,634,347			1.42
	Savings deposits			2,441,949			1.30					2,729,210			0.86					2,461,330			1.27					2,751,850			0.72
	Certificates of deposit			1,371,179			3.51					912,144			1.28					1,331,145			3.36					887,560			0.93
	Total interest bearing deposits			9,568,514			2.74					8,506,092			1.57					9,464,210			2.65					8,403,678			1.29
	Federal Home Loan Bank borrowings			1,186,538			5.50					1,288,242			5.20					1,214,973			5.50					1,130,000			5.00
	Repurchase agreements			107,811			3.34					105,266			1.87					100,188			3.15					118,155			1.55
	Subordinated debt and junior subordinated debt			279,159			5.83					281,715			5.83					279,131			5.85					281,600			5.76
	Total interest bearing liabilities (4)			11,142,022			3.12		%			10,181,315			2.15		%			11,058,502			3.05		%			9,933,433			1.84		%
	Non-interest bearing demand deposits			3,918,685								4,379,345								3,908,837								4,479,200
	Other liabilities			286,659								240,590								285,556								245,033
	Shareholders' equity			2,542,948								2,493,096								2,544,394								2,475,678
	Total Liabilities and Shareholders' Equity		$	17,890,314							$	17,294,346							$	17,797,289							$	17,133,344
	Taxable equivalent net interest spread						1.99		%						2.44		%						1.99		%						2.62		%
	Taxable equivalent net interest margin						2.95		%						3.18		%						2.93		%						3.27		%
	(1) Gross of allowance for credit losses and net of unearned income. Includes non-accrual and loans held for sale. Loan fees included in interest income on loans were $0.9 million and $0.7 million for the three months ended June 30, 2024 and 2023, respectively, and were $1.2 million and $1.1 million for the six months ended June 30, 2024 and 2023. Additionally, loan accretion included in interest income on loans acquired from prior acquisitions was $0.8 million and $1.2 million for the three months ended June 30, 2024 and 2023, respectively, and $1.5 million and $2.5 million for the six months ended June 30, 2024 and 2023, 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 $0.1 million for the three months ended June 30, 2024 and 2023, respectively, and $0.2 million and $0.3 million for the six months ended June 30, 2024 and 2023, respectively.

 

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WESBANCO, INC.
Consolidated Selected Financial Highlights
(unaudited, dollars in thousands, except shares and per share amounts)
			Quarter Ended
			June 30,				Mar. 31,				Dec. 31,				Sept. 30,				June 30,
	Statement of Income		2024				2024				2023				2023				2023
	Interest and dividend income
	Loans, including fees		$	175,361			$	166,974			$	162,498			$	155,206			$	145,741
	Interest and dividends on securities:
	Taxable			16,929				17,404				17,798				18,082				18,483
	Tax-exempt			4,556				4,586				4,639				4,679				4,723
	Total interest and dividends on securities			21,485				21,990				22,437				22,761				23,206
	Other interest income			6,147				6,369				6,383				5,622				7,108
	Total interest and dividend income			202,993				195,333				191,318				183,589				176,055
	Interest expense
	Interest bearing demand deposits			26,925				25,590				23,686				20,873				17,203
	Money market deposits			18,443				16,114				14,302				10,841				7,220
	Savings deposits			7,883				7,667				7,310				6,699				5,860
	Certificates of deposit			11,982				10,247				8,380				5,983				2,906
	Total interest expense on deposits			65,233				59,618				53,678				44,396				33,189
	Federal Home Loan Bank borrowings			16,227				17,000				14,841				16,463				16,713
	Other short-term borrowings			896				674				891				745				492
	Subordinated debt and junior subordinated debt			4,044				4,075				4,150				4,303				4,094
	Total interest expense			86,400				81,367				73,560				65,907				54,488
	Net interest income			116,593				113,966				117,758				117,682				121,567
	Provision for credit losses			10,541				4,014				4,803				6,327				3,028
	Net interest income after provision for credit losses			106,052				109,952				112,955				111,355				118,539
	Non-interest income
	Trust fees			7,303				8,082				7,019				6,705				6,918
	Service charges on deposits			7,111				6,784				6,989				6,726				6,232
	Digital banking income			5,040				4,704				4,890				4,949				5,010
	Net swap fee and valuation income(loss)			1,776				1,563				(345	)			3,845				2,612
	Net securities brokerage revenue			2,601				2,548				2,563				2,394				2,523
	Bank-owned life insurance			2,791				2,067				3,455				2,398				3,189
	Mortgage banking income			1,069				693				650				975				601
	Net securities gains/(losses)			135				537				887				(337	)			205
	Net gain/(loss) on other real estate owned and other assets			34				154				445				(28	)			871
	Other income			3,495				3,497				3,521				3,252				3,680
	Total non-interest income			31,355				30,629				30,074				30,879				31,841
	Non-interest expense
	Salaries and wages			43,991				42,997				45,164				45,351				44,471
	Employee benefits			10,579				12,184				11,409				11,922				11,511
	Net occupancy			6,309				6,623				6,417				6,146				6,132
	Equipment and software			10,457				10,008				9,648				9,132				8,823
	Marketing			2,371				1,885				2,975				3,115				2,763
	FDIC insurance			3,523				3,448				3,369				3,125				2,871
	Amortization of intangible assets			2,072				2,092				2,243				2,262				2,282
	Restructuring and merger-related expense			3,777				-				-				641				35
	Other operating expenses			19,313				17,954				18,278				16,245				17,549
	Total non-interest expense			102,392				97,191				99,503				97,939				96,437
	Income before provision for income taxes			35,015				43,390				43,526				44,295				53,943
	Provision for income taxes			6,099				7,697				8,558				7,453				9,063
	Net Income			28,916				35,693				34,968				36,842				44,880
	Preferred stock dividends			2,531				2,531				2,531				2,531				2,531
	Net income available to common shareholders		$	26,385			$	33,162			$	32,437			$	34,311			$	42,349
	Taxable equivalent net interest income		$	117,804			$	115,185			$	118,991			$	118,926			$	122,822
	Per common share data
	Net income per common share - basic		$	0.44			$	0.56			$	0.55			$	0.58			$	0.71
	Net income per common share - diluted			0.44				0.56				0.55				0.58				0.71
	Net income per common share - diluted, excluding    certain items (1)(2)			0.49				0.56				0.55				0.59				0.71
	Dividends declared			0.36				0.36				0.36				0.35				0.35
	Book value (period end)			40.28				40.30				40.23				38.80				39.10
	Tangible book value (period end) (1)			21.45				21.39				21.28				19.82				20.08
	Average common shares outstanding - basic			59,521,872				59,382,758				59,370,171				59,358,653				59,263,949
	Average common shares outstanding - diluted			59,656,429				59,523,679				59,479,031				59,443,366				59,385,847
	Period end common shares outstanding			59,579,310				59,395,777				59,376,435				59,364,696				59,355,062
	Period end preferred shares outstanding			150,000				150,000				150,000				150,000				150,000
	Full time equivalent employees			2,370				2,331				2,368				2,427				2,542
	(1) See non-GAAP financial measures for additional information relating to the calculation of this item.
	(2) Certain items excluded from the calculation consist of after-tax restructuring and merger-related expenses.

 

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WESBANCO, INC.
Consolidated Selected Financial Highlights
(unaudited, dollars in thousands)
			Quarter Ended
			June 30,				Mar. 31,				Dec. 31,				Sept. 30,				June 30,
	Asset quality data		2024				2024				2023				2023				2023
	Non-performing assets:
	Total non-performing loans		$	35,468			$	32,919			$	26,808			$	29,878			$	31,555
	Other real estate and repossessed assets			1,328				1,474				1,497				1,333				1,432
	Total non-performing assets		$	36,796			$	34,393			$	28,305			$	31,211			$	32,987
	Past due loans (1):
	Loans past due 30-89 days		$	20,237			$	18,515			$	22,875			$	16,030			$	18,348
	Loans past due 90 days or more			9,171				5,408				9,638				8,606				5,147
	Total past due loans		$	29,408			$	23,923			$	32,513			$	24,636			$	23,495
	Criticized and classified loans (2):
	Criticized loans		$	179,621			$	171,536			$	183,174			$	180,136			$	119,771
	Classified loans			83,744				101,898				75,497				70,997				67,036
	Total criticized and classified loans		$	263,365			$	273,434			$	258,671			$	251,133			$	186,807
	Loans past due 30-89 days / total portfolio loans (3)			0.17		%		0.16		%		0.20		%		0.14		%		0.16		%
	Loans past due 90 days or more / total portfolio loans			0.07				0.05				0.08				0.08				0.05
	Non-performing loans / total portfolio loans			0.29				0.28				0.23				0.26				0.28
	Non-performing assets/total portfolio loans, other    real estate and repossessed assets			0.30				0.29				0.24				0.28				0.30
	Non-performing assets / total assets			0.20				0.19				0.16				0.18				0.19
	Criticized and classified loans / total portfolio loans			2.15				2.30				2.22				2.22				1.68
	Allowance for credit losses
	Allowance for credit losses - loans		$	136,509			$	129,190			$	130,675			$	126,615			$	120,166
	Allowance for credit losses - loan commitments			9,194				8,175				8,604				9,729				10,124
	Provision for credit losses			10,541				4,014				4,803				6,327				3,028
	Net loan and deposit account overdraft charge-offs and recoveries			2,221				5,935				1,857				286				581
	Annualized net loan charge-offs and recoveries / average loans			0.07		%		0.20		%		0.06		%		0.01		%		0.02		%
	Allowance for credit losses - loans / total portfolio loans			1.11		%		1.09		%		1.12		%		1.12		%		1.08		%
	Allowance for credit losses - loans / non-performing loans			3.85		x		3.92		x		4.87		x		4.24		x		3.81		x
	Allowance for credit losses - loans / non-performing loans    and loans past due			2.10		x		2.27		x		2.20		x		2.32		x		2.18		x
			Quarter Ended
			June 30,				Mar. 31,				Dec. 31,				Sept. 30,				June 30,
			2024				2024				2023				2023				2023
	Capital ratios
	Tier I leverage capital			9.72		%		9.79		%		9.87		%		9.84		%		9.78		%
	Tier I risk-based capital			11.58				11.87				12.05				12.07				12.12
	Total risk-based capital			14.45				14.76				14.91				14.97				14.83
	Common equity tier 1 capital ratio (CET 1)			10.58				10.84				10.99				11.00				11.04
	Average shareholders' equity to average assets			14.21				14.38				14.17				14.29				14.42
	Tangible equity to tangible assets (4)			8.37				8.50				8.49				8.15				8.24
	Tangible common equity to tangible assets (4)			7.52				7.63				7.62				7.26				7.35
	(1) Excludes non-performing loans.
	(2) Criticized and classified commercial loans may include loans that are also reported as non-performing or past due.
	(3) See non-GAAP financial measures for additional information relating to the calculation of this ratio.

 

 

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NON-GAAP FINANCIAL MEASURES
The following non-GAAP financial measures used by WesBanco provide information useful to investors in understanding WesBanco’s operating performance and trends, and facilitate comparisons with the performance of WesBanco’s peers. The following tables summarize the non-GAAP financial measures derived from amounts reported in WesBanco’s financial statements.
				Three Months Ended																				Year to Date
				June 30,				Mar. 31,				Dec. 31,				Sept. 30,				June 30,				June 30,
		(unaudited, dollars in thousands, except shares and per share amounts)		2024				2024				2023				2023				2023				2024			2023
		Return on average assets, excluding after-tax restructuring and merger-related expenses:
		Net income available to common shareholders		$	26,385			$	33,162			$	32,437			$	34,311			$	42,349			$	59,546		$	82,158
		Plus: after-tax restructuring and merger-related expenses (1)			2,984				-				-				506				28				2,984			2,519
		Net income available to common shareholders excluding after-tax restructuring and merger-related expenses			29,369				33,162				32,437				34,817				42,377				62,530			84,677
		Average total assets		$	17,890,314			$	17,704,265			$	17,426,111			$	17,341,959			$	17,294,346			$	17,797,289		$	17,133,344
		Return on average assets, excluding after-tax restructuring and merger-related expenses (annualized) (2)			0.66	%			0.75	%			0.74	%			0.80	%			0.98	%			0.71	%		1.00	%
		Return on average equity, excluding after-tax restructuring and merger-related expenses:
		Net income available to common shareholders		$	26,385			$	33,162			$	32,437			$	34,311			$	42,349			$	59,546		$	82,158
		Plus: after-tax restructuring and merger-related expenses (1)			2,984				-				-				506				28				2,984			2,519
		Net income available to common shareholders excluding after-tax restructuring and merger-related expenses			29,369				33,162				32,437				34,817				42,377				62,530			84,677
		Average total shareholders' equity			2,542,948				2,545,841				2,468,525				2,478,662				2,493,096				2,544,394			2,475,678
		Return on average equity, excluding after-tax restructuring and merger-related expenses (annualized) (2)			4.65	%			5.24	%			5.21	%			5.57	%			6.82	%			4.94	%		6.90	%
		Return on average tangible equity:
		Net income available to common shareholders		$	26,385			$	33,162			$	32,437			$	34,311			$	42,349			$	59,546		$	82,158
		Plus: amortization of intangibles (1)			1,637				1,653				1,772				1,787				1,803				3,290			3,621
		Net income available to common shareholders before amortization of intangibles			28,022				34,815				34,209				36,098				44,152				62,836			85,779
		Average total shareholders' equity			2,542,948				2,545,841				2,468,525				2,478,662				2,493,096				2,544,394			2,475,678
		Less: average goodwill and other intangibles, net of def. tax liability			(1,122,264	)			(1,123,938	)			(1,125,593	)			(1,127,404	)			(1,129,155	)			(1,123,101	)		(1,130,086	)
		Average tangible equity		$	1,420,684			$	1,421,903			$	1,342,932			$	1,351,258			$	1,363,941			$	1,421,293		$	1,345,592
		Return on average tangible equity (annualized) (2)			7.93	%			9.85	%			10.11	%			10.60	%			12.98	%			8.89	%		12.86	%
		Average tangible common equity		$	1,276,200			$	1,277,419			$	1,198,448			$	1,206,774			$	1,219,457			$	1,276,809		$	1,201,108
		Return on average tangible common equity (annualized) (2)			8.83	%			10.96	%			11.32	%			11.87	%			14.52	%			9.90	%		14.40	%
		Return on average tangible equity, excluding after-tax restructuring and merger-related expenses:
		Net income available to common shareholders		$	26,385			$	33,162			$	32,437			$	34,311			$	42,349			$	59,546		$	82,158
		Plus: after-tax restructuring and merger-related expenses (1)			2,984				-				-				506				28				2,984			2,519
		Plus: amortization of intangibles (1)			1,637				1,653				1,772				1,787				1,803				3,290			3,621
		Net income available to common shareholders before amortization of intangibles and    excluding after-tax restructuring and merger-related expenses			31,006				34,815				34,209				36,604				44,180				65,820			88,298
		Average total shareholders' equity			2,542,948				2,545,841				2,468,525				2,478,662				2,493,096				2,544,394			2,475,678
		Less: average goodwill and other intangibles, net of def. tax liability			(1,122,264	)			(1,123,938	)			(1,125,593	)			(1,127,404	)			(1,129,155	)			(1,123,101	)		(1,130,086	)
		Average tangible equity		$	1,420,684			$	1,421,903			$	1,342,932			$	1,351,258			$	1,363,941			$	1,421,293		$	1,345,592
		Return on average tangible equity, excluding after-tax restructuring and merger-related expenses (annualized) (2)			8.78	%			9.85	%			10.11	%			10.75	%			12.99	%			9.31	%		13.23	%
		Average tangible common equity		$	1,276,200			$	1,277,419			$	1,198,448			$	1,206,774			$	1,219,457			$	1,276,809		$	1,201,108
		Return on average tangible common equity, excluding after-tax restructuring and merger-related expenses (annualized) (2)			9.77	%			10.96	%			11.32	%			12.03	%			14.53	%			10.37	%		14.82	%

 

 

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		Three Months Ended																				Year to Date
		June 30,				Mar. 31,				Dec. 31,				Sept. 30				June 30,				June 30,
(unaudited, dollars in thousands, except shares and per share amounts)		2024				2024				2023				2023				2023				2024			2023
Efficiency ratio:
Non-interest expense		$	102,392			$	97,191			$	99,503			$	97,939			$	96,437			$	199,585		$	192,560
Less: restructuring and merger-related expense			(3,777	)			-				-				(641	)			(35	)			(3,777	)		(3,188	)
Non-interest expense excluding restructuring and merger-related expense			98,615				97,191				99,503				97,298				96,402				195,808			189,372
Net interest income on a fully taxable equivalent basis			117,804				115,185				118,991				118,926				122,822				232,990			248,427
Non-interest income			31,355				30,629				30,074				30,879				31,841				61,984			59,493
Net interest income on a fully taxable equivalent basis plus non-interest income		$	149,159			$	145,814			$	149,065			$	149,805			$	154,663			$	294,974		$	307,920
Efficiency Ratio			66.11	%			66.65	%			66.75	%			64.95	%			62.33	%			66.38	%		61.50	%
Net income available to common shareholders, excluding after-tax restructuring and merger-related expenses:
Net income available to common shareholders		$	26,385			$	33,162			$	32,437			$	34,311			$	42,349			$	59,546		$	82,158
Add: After-tax restructuring and merger-related expenses (1)			2,984				-				-				506				28				2,984			2,519
Net income available to common shareholders, excluding after-tax restructuring and merger-related expenses		$	29,369			$	33,162			$	32,437			$	34,817			$	42,377			$	62,530		$	84,677
Net income per common share - diluted, excluding after-tax restructuring and merger-related expenses:
Net income per common share - diluted		$	0.44			$	0.56			$	0.55			$	0.58			$	0.71			$	1.00		$	1.38
Add: After-tax restructuring and merger-related expenses per common share - diluted (1)			0.05				-				-				0.01				-				0.05			0.05
Net income per common share - diluted, excluding after-tax restructuring and merger-related expenses		$	0.49			$	0.56			$	0.55			$	0.59			$	0.71			$	1.05		$	1.43
		Period End
		June 30,				Mar. 31,				Dec. 31,				Sept. 30,				June 30,
		2024				2024				2023				2023				2023
Tangible book value per share:
Total shareholders' equity		$	2,544,279			$	2,538,362			$	2,533,062			$	2,447,941			$	2,464,998
Less: goodwill and other intangible assets, net of def. tax liability			(1,121,521	)			(1,123,158	)			(1,124,811	)			(1,126,583	)			(1,128,371	)
Less: preferred shareholders' equity			(144,484	)			(144,484	)			(144,484	)			(144,484	)			(144,484	)
Tangible common equity			1,278,274				1,270,720				1,263,767				1,176,874				1,192,143
Common shares outstanding			59,579,310				59,395,777				59,376,435				59,364,696				59,355,062
Tangible book value per share		$	21.45			$	21.39			$	21.28			$	19.82			$	20.08
Tangible common equity to tangible assets:
Total shareholders' equity		$	2,544,279			$	2,538,362			$	2,533,062			$	2,447,941			$	2,464,998
Less: goodwill and other intangible assets, net of def. tax liability			(1,121,521	)			(1,123,158	)			(1,124,811	)			(1,126,583	)			(1,128,371	)
Tangible equity			1,422,758				1,415,204				1,408,251				1,321,358				1,336,627
Less: preferred shareholders' equity			(144,484	)			(144,484	)			(144,484	)			(144,484	)			(144,484	)
Tangible common equity			1,278,274				1,270,720				1,263,767				1,176,874				1,192,143
Total assets			18,128,375				17,772,735				17,712,374				17,344,377				17,356,954
Less: goodwill and other intangible assets, net of def. tax liability			(1,121,521	)			(1,123,158	)			(1,124,811	)			(1,126,583	)			(1,128,371	)
Tangible assets		$	17,006,854			$	16,649,577			$	16,587,563			$	16,217,794			$	16,228,583
Tangible equity to tangible assets			8.37	%			8.50	%			8.49	%			8.15	%			8.24	%
Tangible common equity to tangible assets			7.52	%			7.63	%			7.62	%			7.26	%			7.35	%
(1) Tax effected at 21% for all periods presented.
(2) The ratios are annualized by utilizing actual number of days in the quarter versus the year.

 

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ADDITIONAL NON-GAAP FINANCIAL MEASURES
The following non-GAAP financial measures used by WesBanco provide information useful to investors in understanding WesBanco’s operating performance and trends, and facilitate comparisons with the performance of WesBanco’s peers. The following tables summarize the non-GAAP financial measures derived from amounts reported in WesBanco’s financial statements.
				Three Months Ended																				Year to Date
				June 30,				Mar. 31,				Dec. 31,				Sept. 30,				June 30,				June 30,
		(unaudited, dollars in thousands, except shares and per share amounts)		2024				2024				2023				2023				2023				2024			2023
		Pre-tax, pre-provision income:
		Income before provision for income taxes		$	35,015			$	43,390			$	43,526			$	44,295			$	53,943			$	78,404		$	106,226
		Add: provision for credit losses			10,541				4,014				4,803				6,327				3,028				14,555			6,605
		Pre-tax, pre-provision income		$	45,556			$	47,404			$	48,329			$	50,622			$	56,971			$	92,959		$	112,831
		Pre-tax, pre-provision income, excluding restructuring and merger-related expenses:
		Income before provision for income taxes		$	35,015			$	43,390			$	43,526			$	44,295			$	53,943			$	78,404		$	106,226
		Add: provision for credit losses			10,541				4,014				4,803				6,327				3,028				14,555			6,605
		Add: restructuring and merger-related expenses			3,777				-				-				641				35				3,777			3,188
		Pre-tax, pre-provision income, excluding restructuring and merger-related expenses		$	49,333			$	47,404			$	48,329			$	51,263			$	57,006			$	96,736		$	116,019
		'Return on average assets, excluding certain items (1):
		Income before provision for income taxes		$	35,015			$	43,390			$	43,526			$	44,295			$	53,943			$	78,404		$	106,226
		Add: provision for credit losses			10,541				4,014				4,803				6,327				3,028				14,555			6,605
		Add: restructuring and merger-related expenses			3,777				-				-				641				35				3,777			3,188
		Pre-tax, pre-provision income, excluding restructuring and merger-related expenses			49,333				47,404				48,329				51,263				57,006				96,736			116,019
		Average total assets		$	17,890,314			$	17,704,265			$	17,426,111			$	17,341,959			$	17,294,346			$	17,797,289		$	17,133,344
		Return on average assets, excluding certain items (annualized) (1) (2)			1.11	%			1.08	%			1.10	%			1.17	%			1.32	%			1.09	%		1.37	%
		Return on average equity, excluding certain items (1):
		Income before provision for income taxes		$	35,015			$	43,390			$	43,526			$	44,295			$	53,943			$	78,404		$	106,226
		Add: provision for credit losses			10,541				4,014				4,803				6,327				3,028				14,555			6,605
		Add: restructuring and merger-related expenses			3,777				-				-				641				35				3,777			3,188
		Pre-tax, pre-provision income, excluding restructuring and merger-related expenses			49,333				47,404				48,329				51,263				57,006				96,736			116,019
		Average total shareholders' equity		$	2,542,948			$	2,545,841			$	2,468,525			$	2,478,662			$	2,493,096			$	2,544,394		$	2,475,678
		Return on average equity, excluding certain items (annualized) (1) (2)			7.80	%			7.49	%			7.77	%			8.21	%			9.17	%			7.65	%		9.45	%
		Return on average tangible equity, excluding certain items (1):
		Income before provision for income taxes		$	35,015			$	43,390			$	43,526			$	44,295			$	53,943			$	78,404		$	106,226
		Add: provision for credit losses			10,541				4,014				4,803				6,327				3,028				14,555			6,605
		Add: amortization of intangibles			2,072				2,092				2,243				2,262				2,282				4,164			4,583
		Add: restructuring and merger-related expenses			3,777				-				-				641				35				3,777			3,188
		Income before provision, restructuring and merger-related expenses and amortization of intangibles			51,405				49,496				50,572				53,525				59,288				100,900			120,602
		Average total shareholders' equity			2,542,948				2,545,841				2,468,525				2,478,662				2,493,096				2,544,394			2,475,678
		Less: average goodwill and other intangibles, net of def. tax liability			(1,122,264	)			(1,123,938	)			(1,125,593	)			(1,127,404	)			(1,129,155	)			(1,123,101	)		(1,130,086	)
		Average tangible equity		$	1,420,684			$	1,421,903			$	1,342,932			$	1,351,258			$	1,363,941			$	1,421,293		$	1,345,592
		Return on average tangible equity, excluding certain items (annualized) (1) (2)			14.55	%			14.00	%			14.94	%			15.72	%			17.44	%			14.28	%		18.07	%
		Average tangible common equity		$	1,276,200			$	1,277,419			$	1,198,448			$	1,206,774			$	1,219,457			$	1,276,809		$	1,201,108
		Return on average tangible common equity, excluding certain items (annualized) (1) (2)			16.20	%			15.58	%			16.74	%			17.60	%			19.50	%			15.89	%		20.25	%
		(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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Second Quarter 2024Earnings Call Presentation 26 July 2024 Note: update footnote copyright year annually

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Forward-Looking Statements and Non-GAAP Financial Measures 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, 2023 and documents subsequently filed by WesBanco with the Securities and Exchange Commission (“SEC”) including WesBanco’s Form 10-Q for the quarter ended March 31, 2024, which are available at the SEC’s website, www.sec.gov or at WesBanco’s website, www.WesBanco.com. Investors are cautioned that forward-looking statements, which are not historical fact, involve risks and uncertainties, including those detailed in WesBanco’s most recent Annual Report on Form 10-K filed with the SEC under “Risk Factors” in Part I, Item 1A. Such statements are subject to important factors that could cause actual results to differ materially from those contemplated by such statements, including, without limitation, the effects of changing regional and national economic conditions, changes in interest rates, spreads on earning assets and interest-bearing liabilities, and associated interest rate sensitivity; sources of liquidity available to WesBanco and its related subsidiary operations; potential future credit losses and the credit risk of commercial, real estate, and consumer loan customers and their borrowing activities; actions of the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Consumer Financial Protection Bureau, the SEC, the Financial Institution Regulatory Authority, the Municipal Securities Rulemaking Board, the Securities Investors Protection Corporation, and other regulatory bodies; potential legislative and federal and state regulatory actions and reform, including, without limitation, the impact of the implementation of the Dodd-Frank Act; adverse decisions of federal and state courts; fraud, scams and schemes of third parties; cyber-security breaches; competitive conditions in the financial services industry; rapidly changing technology affecting financial services; marketability of debt instruments and corresponding impact on fair value adjustments; and/or other external developments materially impacting WesBanco’s operational and financial performance. WesBanco does not assume any duty to update forward-looking statements. 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.

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Continued strong loan growth both year-over-year and quarter-over-quarter Total loans up $1.1 billion year-over-year Deposits increased 4.4% year-over-year Non-interest income increased 2.4% quarter-over-quarter Continued efforts to optimize our financial center network to improve efficiencies Key credit quality metrics remained at low levels and favorable to peer bank averages WesBanco remains well-capitalized with solid liquidity and a strong balance sheet with capacity to fund loan growth Nationally recognized as a ‘greatest workplace’ for the high engagement of our diverse and talented teams Net Income Available to Common Shareholders and Diluted EPS(1) $29.4 million; $0.49/diluted share Total Loan Growth +12.9% QoQ (annualized); +10.1% YoY Total Deposits +4.4% YoY Non-Interest Income +2.4% QoQ Average loans to average deposits 89.4% Non-Performing Assets to Total Assets 0.20% Tangible Common Equity to Tangible Assets(1) 7.52% 8 consecutive quarters of strong YoY loan growth averaging 9% Note: financial and operational highlights during the quarter ended June 30, 2024 (1) Non-GAAP measure – please see reconciliation in appendix; excludes restructuring and merger-related expenses Q2 2024 Financial and Operational Highlights

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Q2 2024 Key Metrics Note: PTPP = pre-tax, pre-provision Non-GAAP measure – please see reconciliation in appendix Excludes restructuring and merger-related expenses

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+10.1% year-over-year and +3.2% (or +12.9% annualized) quarter-over-quarter Loan growth continues to demonstrate the strength of our markets and lending teams Loan production offices are contributing meaningfully to both commercial loan growth and loan pipeline, which was approximately $950 million, as of 6/30/2024 C&I loans increased 13.0% year-over-year and 18.4% quarter-over-quarter annualized, reflecting strategic loan production office and lender hiring initiatives CRE loan payoffs totaled approximately $32 million during the second quarter ($95 million year-to-date), as compared to an anticipated annual level in the $500 million range within a more normal operating environment C&I line utilization, for the second quarter, increased 370 basis points year-over-year to ~36%, as compared to a mid-40% range prior to the pandemic Total loans up $1.1 billion YoY and $0.4 billion QoQ Q2 2024 Total Portfolio Loans

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Solid year-over-year deposit growth of 4.4% Note: “uninsured deposits” are approximated; “collateralized municipal deposits” are collateralized by securities Deposits of $13.4 billion were up 4.4% year-over-year, reflecting deposit gathering and retention efforts by our retail and commercial teams Distribution: consumer ~54% and business ~32% (note: public funds, which are separately collateralized, ~14%) The composition of total deposits continues to have some mix shift, reflecting the impact of the significant increase in the federal funds rate Total demand deposits continued to represented 55% of total deposits, with the non-interest bearing component representing 28% Non-interest bearing demand deposits as a percentage of total deposits remain consistent with the percentage range prior to the pandemic Average loans to average deposits were 89.4%, providing continued capacity to fund loan growth Q2 2024 Total Deposits

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Tangible common equity to tangible assets ratio improved 17 basis points year-over-year to 7.52% Weighted average yield 2.52% vs. 2.46% last year Weighted average duration 4.9 Total unrealized securities losses (after-tax): Available for Sale (“AFS”) = $242MM Held to Maturity (“HTM”) = $115MM Note: HTM losses not recognized in accumulated other comprehensive income Securities 18.2% of assets, down 237 basis points year-over-year Note: weighted average yields have been calculated on a taxable-equivalent basis using the federal statutory rate of 21%; after-tax unrealized losses have been calculated using the Other Comprehensive Income (“OCI”) tax rate of ~24% Non-GAAP measure – please see reconciliation in appendix Q2 2024 Total Securities

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NIM continues to reflect the higher rate environment and deposit remix Q2 2024 net interest margin of 2.95% reflects higher funding costs from the remix of non-interest bearing deposits into higher tier money market and certificate of deposit accounts, offset by loan growth and the benefit of rising interest rates on earning assets As anticipated, NIM increased 3 basis points quarter-over-quarter as higher loan yields outpaced higher funding costs Loan yields increased 14 basis points quarter-over-quarter and 54 basis points year-over-year, as rates on new commercial loans continue to average 8% Deposit funding costs, including non-interest bearing deposits, were 195 basis points, increasing 14 basis points sequentially and 92 basis points year-over-year, reflecting a continuation of the decline in the rate of increase as the pace of remix continues to soften Q2 2024 Net Interest Margin (NIM)

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Non-interest income decreased 1.5% year-over-year primarily due to lower net swap fee and valuation income, as well as higher net gains on other real estate owned and other assets in the prior year period Gross swap fees were $1.8 million, compared to $2.4 million in the prior year Fair market valuation adjustment of zero, as compared to $0.2 million last year The year-over-year increase in service charges on deposits reflects fee income from new products and services and increased general consumer spending Mortgage banking income increased year-over-year due to an improvement in the net gain on sale margin for residential mortgages sold in the secondary market Wealth management and new product/service fees driving growth Note: OREO = other real estate owned Q2 2024 Non-Interest Income

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Committed to discretionary expense management Q2 2024 Non-Interest Expense Non-interest expense increased year-over-year due to increases in equipment and software expenses and other operating expenses Equipment and software expense increased due to he impact of the prior year ATM upgrades, which were phased in throughout the prior year Other operating expenses increased primarily due to higher costs and fees in support of loan growth and higher other miscellaneous expenses Salaries and wages decreased year-over-year due to lower staffing levels associated with efficiency improvements in the mortgage and branch staffing models, partially offset by normal compensation merit adjustments Employee benefits decreased due to lower health insurance costs driven by lower staffing levels

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Favorable asset quality measures compared to peer bank group Note: financial data as of quarter ending for dates specified; peer bank group includes all U.S. banks with total assets of $10B to $25B from S&P Capital IQ (as of 7/8/2024) and represent simple averages except criticized & classified loans as % of total loans which is a weighted average Non-Performing Assets as % of Total Assets Net Charge-Offs as % of Average Loans (Annualized) Allowance for Credit Losses as % of Total Loans Criticized & Classified Loans as % of Total Loans Strong Legacy of Credit Quality

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Allowance coverage ratio of 1.11% Note: ACL at 6/30/2024 excludes off-balance sheet credit exposures of $9.2 million The increase in the allowance was driven by strong loan growth, higher unemployment assumptions, and a reserve for an individual C&I loan During Q2 2024, recorded a provision for credit losses of $10.5 million, as compared to $3.0 million in the prior year period Allowance coverage ratio of 1.11% Excludes fair market value adjustments on previously acquired loans representing 0.10% of total portfolio loans Q2 2024 Current Expected Credit Loss (CECL)

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Capital ratios above both regulatory and well-capitalized levels Note: financial data as of quarter ending 12/31; current year data as of 6/30/2024; WSBC adopted Current Expected Credit Losses (“CECL”) CECL accounting standard 1/1/2020 Under the existing share repurchase authorization that was approved on February 24, 2022 by WesBanco’s Board of Directors Non-GAAP measure – please see reconciliation in appendix Tangible Equity to Tangible Assets (2) Tier 1 Risk-Based Capital Ratio Well-Capitalized 8.0% Required 6.0% Strong regulatory capital ratios significantly above both regulatory requirements and well-capitalized levels, with favorable tangible equity levels compared to peers ~1.0 million shares continue to remain for repurchase (as of 6/30/2024)(1) No shares repurchased on the open market during Q2 2024 Strong Capital Position

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Appendix

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Pre-Tax, Pre-Provision Income (PTPP) and Ratios Reconciliation

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Net Income and Diluted Earnings per Share (EPS) Reconciliation

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Tangible Book Value per Share Reconciliation

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Efficiency Ratio Reconciliation

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Return on Average Assets (1) three-, six-, and nine-month (as applicable) figures are annualized Reconciliation

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Return on Average Tangible Equity (1) three-, six-, and nine-month (as applicable) figures are annualized Reconciliation

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Tangible Equity to Tangible Assets Note: Old Line Bancshares merger closed November 2019; Farmers Capital Bank Corporation merger closed August 2018; First Sentry Bancshares merger closed April 2018; Your Community Bankshares merger closed September 2016; ESB Financial merger closed February 2015; Fidelity Bancorp merger closed November 2012; AmTrust 5 branch acquisition closed March 2009; Oak Hill Financial closed November 2007 Reconciliation

v3.24.2

Document And Entity Information	Jul. 26, 2024
Document Information [Line Items]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jul. 26, 2024
Entity Registrant Name	WESBANCO, INC.
Entity Central Index Key	0000203596
Entity Emerging Growth Company	false
Entity File Number	001-39442
Entity Incorporation, State or Country Code	WV
Entity Tax Identification Number	55-0571723
Entity Address, Address Line One	1 Bank Plaza
Entity Address, City or Town	Wheeling
Entity Address, State or Province	WV
Entity Address, Postal Zip Code	26003
City Area Code	304
Local Phone Number	234-9000
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Common Stock [Member]
Document Information [Line Items]
Title of 12(b) Security	Common Stock $2.0833 Par Value
Trading Symbol	WSBC
Security Exchange Name	NASDAQ
Depositary Shares [Member]
Document Information [Line Items]
Title of 12(b) Security	Depositary Shares (each representing 1/40th interest in a share of 6.75% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A)
Trading Symbol	WSBCP
Security Exchange Name	NASDAQ

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