WesBanco Announces Fourth Quarter 2023 Financial Results

Continued deposit and loan growth while maintaining a stable net interest margin

WHEELING, W.Va., Jan. 23, 2024 /PRNewswire/ — WesBanco, Inc. (“WesBanco”) (Nasdaq: WSBC), a diversified, multi-state bank holding company, today announced net income and related earnings per share for the three and twelve months ended December 31, 2023. Net income available to common shareholders for the fourth quarter of 2023 was $32.4 million, with diluted earnings per share of $0.55, compared to $49.7 million and $0.84 per diluted share, respectively, for the fourth quarter of 2022. For the twelve months ended December 31, 2023, net income was $148.9 million, or $2.51 per diluted share, compared to $182.0 million, or $3.02 per diluted share, for the 2022 period. As noted in the following table, net income available to common shareholders, excluding after-tax restructuring and merger-related expenses, for the three and twelve months ended December 31, 2023 were $32.4 million, or $0.55 per diluted share, and $151.9 million, or $2.56 per diluted share, respectively (non-GAAP measures).

For the Three Months Ended December 31,

For the Twelve Months Ended December 31,

2023

2022

2023

2022

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

Net Income

Diluted
Earnings
Per Share

Net Income

Diluted
Earnings
Per Share

Net Income

Diluted
Earnings
Per Share

Net Income

Diluted
Earnings
Per Share

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

$      32,437

$          0.55

$      49,688

$          0.84

$    151,933

$          2.56

$    183,349

$          3.04

Less: After-tax restructuring and
merger-related expenses

(9)

(3,026)

(0.05)

(1,361)

(0.02)

Net income available to common
shareholders (GAAP)

$      32,437

$          0.55

$      49,679

$          0.84

$    148,907

$          2.51

$    181,988

$          3.02

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

Financial and operational highlights during the quarter ended December 31, 2023:

Deposits of $13.2 billion increased both year-over-year and sequentially, reflecting deposit gathering and retention efforts across retail and business customers

Average loans to average deposits were 87%, providing capacity to fund loan growth

Total loan growth was 8.7% year-over-year and 2.9% quarter-over-quarter, reflecting the strength of our markets and lending teams

Loan production offices continued to contribute meaningfully to the commercial loan pipeline

Non-interest income increased 8.0% year-over-year, supported by new commercial loan swap and wealth management fees

New commercial swap fees totaled $9.0 million during 2023
Trust assets increased to $5.4 billion, driven by both market value adjustments and organic growth

Net interest margin of 3.02% was stable to the third quarter of 2023
Key credit quality metrics such as non-performing assets, total past due loans, and net loan charge-offs, as percentages of total portfolio loans, have remained at low levels and favorable to peer bank averages (based upon the prior four quarters for banks with total assets between $10 billion and $25 billion)
WesBanco remains well-capitalized with solid liquidity and a strong balance sheet with capacity to fund loan growth
WesBanco continued to earn national accolades, being recognized as one of America’s Best Regional Banks by Newsweek

“Record interest rate escalation by the Federal Reserve had a significant impact on all banks, including WesBanco. Despite that headwind, WesBanco performed well during 2023 through our continued focus on customer service and sustainable growth strategies. We achieved sustained loan, deposit, and fee income growth, while maintaining strong capital levels and credit quality,” said Jeff Jackson, President and Chief Executive Officer, WesBanco. “Our focus on further diversifying our revenue streams with new fee-based services is driving positive non-interest income trends. As we begin 2024, we remain well-capitalized with solid liquidity and a strong balance sheet to fund loan growth, positioning us well to continue generating value for our stakeholders.”

Balance SheetAs of December 31, 2023, total portfolio loans were $11.6 billion, which increased 8.7% year-over-year driven by strong performance from our commercial and residential lending teams. Total commercial loans of $8.2 billion, which increased 7.8% year-over-year, reflects the benefit of our commercial banker hiring and loan production office strategies and lower commercial real estate payoffs of $276 million for the year, compared to an anticipated level in the $500 million range within a more normal operating environment.  Our new loan production offices accounted for more than 20% of commercial loan growth during the year. The commercial pipeline totaled $0.7 billion at December 31, 2023, approximately 28% of which is from the four new loan production offices.

Total deposits, as of December 31, 2023, were $13.2 billion, up 0.6% from September 30, 2023 and up 0.3% from December 31, 2022, reflecting the benefit of deposit gathering and retention efforts by our retail and commercial teams. Reflecting the impact of the significant increase in the federal funds rate, there continued to be some mix shift in the composition of total deposits; however, total demand deposits continue to represent 56% of total deposits, with the non-interest bearing component representing 30%, which remains consistent with the percentage range since early 2020.

Credit QualityAs of December 31, 2023, total loans past due, criticized and classified loans, non-performing loans, and non-performing assets as percentages of the loan portfolio and total assets have remained low, from a historical perspective, and within a consistent range throughout the last five quarters. Total loans past due as a percent of the loan portfolio increased 9 basis points from the prior year, but remain below the quarterly average for the last three years. Criticized and classified loans as a percent of the loan portfolio decreased 12 basis points year-over-year to 2.22%, while non-performing assets as a percentage of total assets declined 9 basis points to 0.16%. The current recorded provision was primarily driven by changes in criticized and classified loan balances, prepayment assumptions, and loan growth. The allowance for credit losses to total portfolio loans at December 31, 2023 remained at 1.12% of total loans, as compared to the third quarter, or $130.7 million. Excluded from the allowance for credit losses and related coverage ratio are fair market value adjustments on previously acquired loans representing 0.12% of total loans.

Net Interest Margin and IncomeThe net interest margin of 3.02% for the fourth quarter of 2023 decreased just 1 basis point sequentially but 47 basis points year-over-year primarily due to higher funding costs from increasing deposit costs and continued remix from non-interest bearing deposits into higher tier money market and certificate of deposit accounts. Total deposit funding costs were 234 basis points for the fourth quarter of 2023, and, when including non-interest deposits, total deposit funding costs were 161 basis points. Accretion from acquisitions benefited the fourth quarter net interest margin by 3 basis points, as compared to 5 basis points in the prior year period.

Fourth quarter net interest income of $117.8 million decreased $12.1 million, or 9.3%, year-over-year, reflecting the impact of rising rates on funding costs more than offsetting higher loan and securities yields and loan growth. For the twelve months ended December 31, 2023, net interest income of $481.3 million increased $7.0 million, or 1.5%, primarily due to loan growth and the benefit of rising rates on earning assets outpacing funding costs.

Non-Interest IncomeFor the fourth quarter of 2023, non-interest income of $30.1 million increased $2.3 million, or 8.3%, from the fourth quarter of 2022.  This increase was primarily due to net securities gains of $0.9 million, as compared to a loss of $0.6 million in the prior year period, from market fluctuations of equity securities in the deferred compensation plan and higher death benefits within bank-owned life insurance. The net swap fee and valuation loss of $0.3 million reflects $2.2 million of new swap fees offset by negative fair value adjustments of $2.5 million, as compared to $1.7 million and negative $0.7 million, respectively, in the prior year period.

For the twelve months ended December 31, 2023, non-interest income of $120.4 million increased $3.1 million, or 2.6%, year-over-year due primarily to the items discussed above, partially offset by lower mortgage banking income. Mortgage banking income decreased $2.5 million from the prior year to $2.7 million due to reduced fair value adjustments on mortgage derivatives. Net gains on other assets of $1.5 million increased $1.0 million year-over-year primarily due to a $1.1 million recovery of an asset previously written-off.

Non-Interest ExpenseNon-interest expense for the three months ended December 31, 2023 increased $9.0 million year-over-year to $99.5 million, reflecting increased salaries and wages, benefits, equipment and software expense, and FDIC insurance. As anticipated, salaries and wages declined sequentially which reflects efficiency improvements in the mortgage staffing model. Salaries and wages increased $2.6 million, or 6.0%, compared to the prior year period due to higher salary expense related to annual merit increases and new revenue-producing hires, mainly commercial lenders, during the past year. Employee benefits increased $2.2 million year-over-year due to higher deferred compensation expense, the offsetting gain is located within net securities gains, and higher health insurance contributions. FDIC insurance expense increased $1.3 million year-over-year due to an increase in the minimum rate for all banks. Marketing expense increased $1.2 million in support of deposit and loan generation campaigns. Equipment and software expense increased $0.9 million due to the planned upgrade of our ATM fleet with the latest technology and general inflationary cost increases for existing service agreements.

Excluding restructuring and merger-related expenses, non-interest expense during the twelve months of 2023 of $386.2 million increased $30.9 million compared to the prior year period, due primarily to the same factors as described above.

CapitalWesBanco continues to maintain what we believe are strong regulatory capital ratios, as both consolidated and bank-level regulatory capital ratios are well above the applicable “well-capitalized” standards promulgated by bank regulators and the BASEL III capital standards. At December 31, 2023, Tier I leverage was 9.87%, Tier I risk-based capital ratio was 12.05%, common equity Tier 1 capital ratio (“CET 1”) was 10.99%, and total risk-based capital was 14.91%. In addition, the tangible common equity to tangible assets ratio improved to 7.62%.

Conference Call and WebcastWesBanco will host a conference call to discuss the Company’s financial results for the fourth quarter of 2023 at 10:00 a.m. ET on Wednesday, January 24, 2024. Interested parties can access the live webcast of the conference call through the Investor Relations section of the Company’s website, www.wesbanco.com. Participants can also listen to the conference call by dialing 888-347-6607, 855-669-9657 for Canadian callers, or 412-902-4290 for international callers, and asking to be joined into the WesBanco call. Please log in or dial in at least 10 minutes prior to the start time to ensure a connection.

A replay of the conference call will be available by dialing 877-344-7529, 855-669-9658 for Canadian callers, or 412-317-0088 for international callers, and providing the access code of 4078172. The replay will begin at approximately 12:00 p.m. ET on January 24, 2024 and end at 12 a.m. ET on February 7, 2024. An archive of the webcast will be available for one year on the Investor Relations section of the Company’s website (www.wesbanco.com).

Forward-Looking StatementsForward-looking statements in this report relating to WesBanco’s plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The information contained in this report should be read in conjunction with WesBanco’s Form 10-K for the year ended December 31, 2022 and documents subsequently filed by WesBanco with the Securities and Exchange Commission (“SEC”), including WesBanco’s Form 10-Q for the quarters ended March 31, 2023, June 30, 2023 and September 30, 2023, which are available at the SEC’s website, www.sec.gov or at WesBanco’s website, www.WesBanco.com. Investors are cautioned that forward-looking statements, which are not historical fact, involve risks and uncertainties, including those detailed in WesBanco’s most recent Annual Report on Form 10-K filed with the SEC under “Risk Factors” in Part I, Item 1A. Such statements are subject to important factors that could cause actual results to differ materially from those contemplated by such statements, including, without limitation, the effects of changing regional and national economic conditions, changes in interest rates, spreads on earning assets and interest-bearing liabilities, and associated interest rate sensitivity; sources of liquidity available to WesBanco and its related subsidiary operations; potential future credit losses and the credit risk of commercial, real estate, and consumer loan customers and their borrowing activities; actions of the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Consumer Financial Protection Bureau, the SEC, the Financial Institution Regulatory Authority, the Municipal Securities Rulemaking Board, the Securities Investors Protection Corporation, and other regulatory bodies; potential legislative and federal and state regulatory actions and reform, including, without limitation, the impact of the implementation of the Dodd-Frank Act; adverse decisions of federal and state courts; fraud, scams and schemes of third parties; cyber-security breaches; competitive conditions in the financial services industry; rapidly changing technology affecting financial services; marketability of debt instruments and corresponding impact on fair value adjustments; and/or other external developments materially impacting WesBanco’s operational and financial performance. WesBanco does not assume any duty to update forward-looking statements.

Non-GAAP Financial Measures

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

About WesBanco, Inc.

Founded in 1870, Wesbanco, Inc. is a diversified and balanced financial services company that delivers large bank capabilities with a community bank feel. Our distinct long-term growth strategies are built upon unique sustainable advantages permitting us to span six states with meaningful market share. The company’s banking subsidiary, Wesbanco Bank, Inc., operates more than 190 financial centers in the states of Indiana, Kentucky, Maryland, Ohio, Pennsylvania, and West Virginia. Built upon our ‘Better Banking Pledge’, our customer-centric service culture is focused on growing long-term relationships by pledging to serve all personal and business customer needs efficiently and effectively. In addition to a full range of online and mobile banking options and a full-suite of commercial products and services, the company provides trust, wealth management, securities brokerage, and private banking services through its century-old Trust and Investment Services department, with approximately $5.4 billion of assets under management (as of December 31, 2023). The company also offers insurance and brokerage services through its affiliates and subsidiaries. Learn more at www.wesbanco.com and follow us on Facebook, LinkedIn and X, formerly Twitter.

WESBANCO, INC.

Consolidated Selected Financial Highlights

Page 5

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

For the Three Months Ended

For the Twelve Months Ended

Statement of Income

December 31,

December 31,

Interest and dividend income

2023

2022

% Change

2023

2022

% Change

Loans, including fees

$        162,498

$          123,307

31.8

$        596,852

$          422,401

41.3

Interest and dividends on securities:

Taxable 

17,798

18,655

(4.6)

73,449

66,123

11.1

Tax-exempt

4,639

4,853

(4.4)

18,830

18,818

0.1

Total interest and dividends on securities

22,437

23,508

(4.6)

92,279

84,941

8.6

Other interest income 

6,383

2,103

203.5

22,385

6,314

254.5

          Total interest and dividend income

191,318

148,918

28.5

711,516

513,656

38.5

Interest expense

Interest bearing demand deposits

23,686

7,264

226.1

72,866

12,181

498.2

Money market deposits

14,302

1,890

656.7

36,616

3,562

928.0

Savings deposits

7,310

2,454

197.9

23,869

4,115

480.0

Certificates of deposit

8,380

742

 NM 

18,472

4,089

351.7

Total interest expense on deposits

53,678

12,350

334.6

151,823

23,947

534.0

Federal Home Loan Bank borrowings

14,841

2,634

463.4

59,318

3,968

 NM 

Other short-term borrowings

891

324

175.0

2,545

568

348.1

Subordinated debt and junior subordinated debt 

4,150

3,736

11.1

16,492

10,860

51.9

Total interest expense

73,560

19,044

286.3

230,178

39,343

485.1

Net interest income 

117,758

129,874

(9.3)

481,338

474,313

1.5

Provision for credit losses

4,803

3,123

53.8

17,734

(1,663)

 NM 

Net interest income after provision for credit losses

112,955

126,751

(10.9)

463,604

475,976

(2.6)

Non-interest income

Trust fees

7,019

6,672

5.2

28,135

27,551

2.1

Service charges on deposits

6,989

6,762

3.4

26,116

26,281

(0.6)

Electronic banking fees

4,890

4,695

4.2

19,454

20,002

(2.7)

Net swap fee and valuation (loss)/income 

(345)

1,015

(134.0)

6,912

7,067

(2.2)

Net securities brokerage revenue

2,563

2,556

0.3

10,055

9,525

5.6

Bank-owned life insurance

3,455

2,464

40.2

11,002

10,728

2.6

Mortgage banking income

650

621

4.7

2,652

5,129

(48.3)

Net securities gains/(losses)

887

(600)

247.8

900

(1,777)

150.6

Net gains on other real estate owned and other assets

445

550

(19.1)

1,520

482

215.4

Other income

3,521

3,035

16.0

13,701

12,403

10.5

Total non-interest income

30,074

27,770

8.3

120,447

117,391

2.6

Non-interest expense

Salaries and wages

45,164

42,606

6.0

176,938

167,028

5.9

Employee benefits

11,409

9,198

24.0

46,901

37,771

24.2

Net occupancy

6,417

6,262

2.5

25,338

26,105

(2.9)

Equipment and software

9,648

8,712

10.7

36,666

32,508

12.8

Marketing

2,975

1,788

66.4

11,178

9,335

19.7

FDIC insurance 

3,369

2,051

64.3

12,249

7,901

55.0

Amortization of intangible assets

2,243

2,541

(11.7)

9,088

10,278

(11.6)

Restructuring and merger-related expense

11

(100.0)

3,830

1,723

122.3

Other operating expenses  

18,278

17,286

5.7

67,814

64,317

5.4

Total non-interest expense

99,503

90,455

10.0

390,002

356,966

9.3

Income before provision for income taxes

43,526

64,066

(32.1)

194,049

236,401

(17.9)

Provision for income taxes 

8,558

11,856

(27.8)

35,017

44,288

(20.9)

Net Income

34,968

52,210

(33.0)

159,032

192,113

(17.2)

Preferred stock dividends

2,531

2,531

10,125

10,125

Net income available to common shareholders

$          32,437

$            49,679

(34.7)

$        148,907

$          181,988

(18.2)

Taxable equivalent net interest income

$       118,991

$       131,164

(9.3)

$       486,343

$       479,315

1.5

Per common share data

Net income per common share – basic

$               0.55

$                0.84

(34.5)

$               2.51

$                3.03

(17.2)

Net income per common share – diluted

0.55

0.84

(34.5)

2.51

3.02

(16.9)

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

0.55

0.84

(34.5)

2.56

3.04

(15.8)

Dividends declared

0.36

0.35

2.9

1.41

1.37

2.9

Book value (period end)

40.23

38.55

4.4

40.23

38.55

4.4

Tangible book value (period end) (1)

21.28

19.43

9.5

21.28

19.43

9.5

Average common shares outstanding – basic

59,370,171

59,188,238

0.3

59,303,210

60,047,177

(1.2)

Average common shares outstanding – diluted

59,479,031

59,374,204

0.2

59,427,989

60,215,374

(1.3)

Period end common shares outstanding

59,376,435

59,198,963

0.3

59,376,435

59,198,963

0.3

Period end preferred shares outstanding

150,000

150,000

150,000

150,000

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

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

NM = Not Meaningful

WESBANCO, INC.

Consolidated Selected Financial Highlights

Page 6

(unaudited, dollars in thousands)

Selected ratios

For the Twelve Months Ended

December 31,

2023

2022

% Change

Return on average assets

0.86

%

1.08

%

(20.37)

%

Return on average assets, excluding

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

0.88

1.09

(19.27)

Return on average equity

6.02

7.23

(16.74)

Return on average equity, excluding

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

6.14

7.29

(15.78)

Return on average tangible equity (1)

11.59

13.78

(15.89)

Return on average tangible equity, excluding 

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

11.82

13.88

(14.84)

Return on average tangible common equity (1)

12.99

15.39

(15.59)

Return on average tangible common equity, excluding 

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

13.24

15.50

(14.58)

Yield on earning assets (2) 

4.63

3.47

33.43

Cost of interest bearing liabilities

2.25

0.42

435.71

Net interest spread (2)

2.38

3.05

(21.97)

Net interest margin (2)

3.14

3.20

(1.88)

Efficiency (1) (2)

63.64

59.53

6.90

Average loans to average deposits

85.71

74.21

15.50

Annualized net loan charge-offs/average loans

0.04

0.02

100.00

Effective income tax rate 

18.05

18.73

(3.63)

For the Three Months Ended

Dec. 31,

Sept. 30,

June 30,

Mar. 31,

Dec. 31,

2023

2023

2023

2023

2022

Return on average assets

0.74

%

0.78

%

0.98

%

0.95

%

1.18

%

Return on average assets, excluding

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

0.74

0.80

0.98

1.01

1.18

Return on average equity

5.21

5.49

6.81

6.57

8.18

Return on average equity, excluding

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

5.21

5.57

6.82

6.98

8.18

Return on average tangible equity (1)

10.11

10.60

12.98

12.72

16.05

Return on average tangible equity, excluding 

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

10.11

10.75

12.99

13.48

16.05

Return on average tangible common equity (1)

11.32

11.87

14.52

14.28

18.09

Return on average tangible common equity, excluding 

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

11.32

12.03

14.53

15.13

18.10

Yield on earning assets (2) 

4.88

4.72

4.59

4.32

4.00

Cost of interest bearing liabilities

2.76

2.52

2.15

1.52

0.82

Net interest spread (2)

2.12

2.20

2.44

2.80

3.18

Net interest margin (2)

3.02

3.03

3.18

3.36

3.49

Efficiency (1) (2) 

66.75

64.95

62.33

60.66

56.91

Average loans to average deposits

87.07

86.79

85.44

83.46

78.43

Annualized net loan charge-offs and recoveries /average loans

0.06

0.01

0.02

0.07

0.02

Effective income tax rate 

19.66

16.83

16.80

19.02

18.51

Trust assets, market value at period end

$   5,360,657

$      4,982,324

$      5,127,265

$      5,026,631

$      4,878,479

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

(2) The yield on earning assets, net interest margin, net interest spread and efficiency ratios are presented on a fully 

    taxable-equivalent (FTE) and annualized basis. The FTE basis adjusts for the tax benefit of income on certain tax-exempt 

   loans and investments.   WesBanco believes this measure to be the preferred industry measurement of net interest income and

   provides a relevant comparison between taxable and non-taxable amounts.

WESBANCO, INC.

Consolidated Selected Financial Highlights

Page 7

(unaudited, dollars in thousands, except shares)

% Change

Balance sheet

December 31,

September 30,

September 30, 2023

Assets

2023

2022

% Change

2023

to December 31, 2023

Cash and due from banks

$        158,504

$          166,182

(4.6)

$             153,012

3.6

Due from banks – interest bearing

436,879

242,229

80.4

342,070

27.7

Securities:

Equity securities, at fair value

12,320

11,506

7.1

11,453

7.6

Available-for-sale debt securities, at fair value

2,194,329

2,529,140

(13.2)

2,196,141

(0.1)

Held-to-maturity debt securities (fair values of $1,069,159; $1,084,390

and $998,987, respectively)

1,199,527

1,248,629

(3.9)

1,210,992

(0.9)

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

(192)

(220)

12.7

(180)

(6.7)

Net held-to-maturity debt securities

1,199,335

1,248,409

(3.9)

1,210,812

(0.9)

Total securities

3,405,984

3,789,055

(10.1)

3,418,406

(0.4)

Loans held for sale

16,354

8,249

98.3

17,677

(7.5)

Portfolio loans:

Commercial real estate

6,565,448

6,061,344

8.3

6,387,183

2.8

Commercial and industrial

1,670,659

1,579,395

5.8

1,587,611

5.2

Residential real estate 

2,438,574

2,140,584

13.9

2,392,531

1.9

Home equity

734,219

695,065

5.6

715,186

2.7

Consumer 

229,561

226,340

1.4

233,362

(1.6)

Total portfolio loans, net of unearned income

11,638,461

10,702,728

8.7

11,315,873

2.9

Allowance for credit losses – loans 

(130,675)

(117,790)

(10.9)

(126,615)

(3.2)

Net portfolio loans

11,507,786

10,584,938

8.7

11,189,258

2.8

Premises and equipment, net

233,571

220,892

5.7

226,377

3.2

Accrued interest receivable

77,435

68,522

13.0

73,014

6.1

Goodwill and other intangible assets, net

1,132,267

1,141,355

(0.8)

1,134,510

(0.2)

Bank-owned life insurance

355,033

352,361

0.8

356,962

(0.5)

Other assets

388,561

358,122

8.5

433,091

(10.3)

Total Assets

$  17,712,374

$     16,931,905

4.6

$        17,344,377

2.1

Liabilities

Deposits:

Non-interest bearing demand

$     3,962,592

$       4,700,438

(15.7)

$          4,169,956

(5.0)

Interest bearing demand

3,463,443

3,119,807

11.0

3,278,956

5.6

Money market

2,017,713

1,684,023

19.8

1,905,001

5.9

Savings deposits

2,493,254

2,741,004

(9.0)

2,559,894

(2.6)

Certificates of deposit

1,231,702

885,818

39.0

1,176,421

4.7

Total deposits

13,168,704

13,131,090

0.3

13,090,228

0.6

Federal Home Loan Bank borrowings

1,350,000

705,000

91.5

1,125,000

20.0

Other short-term borrowings

105,893

135,069

(21.6)

106,693

(0.7)

Subordinated debt and junior subordinated debt 

279,078

281,404

(0.8)

282,079

(1.1)

Total borrowings

1,734,971

1,121,473

54.7

1,513,772

14.6

Accrued interest payable

11,121

4,593

142.1

11,416

(2.6)

Other liabilities

264,516

248,087

6.6

281,020

(5.9)

Total Liabilities

15,179,312

14,505,243

4.6

14,896,436

1.9

Shareholders’ Equity

Preferred stock, no par value; 1,000,000 shares authorized; 150,000 shares

6.75% non-cumulative perpetual preferred stock, Series A, liquidation

preference $150.0 million, issued and outstanding, respectively

144,484

144,484

144,484

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

68,081,306 shares issued; 59,376,435, 59,198,963 and 59,364,696

shares outstanding, respectively

141,834

141,834

141,834

Capital surplus

1,635,859

1,635,877

(0.0)

1,633,395

0.2

Retained earnings

1,142,586

1,077,675

6.0

1,131,597

1.0

Treasury stock (8,704,871, 8,882,343 and 8,716,610 shares – at cost, respectively)

(302,995)

(308,964)

1.9

(303,424)

0.1

Accumulated other comprehensive loss

(226,693)

(262,416)

13.6

(297,906)

23.9

Deferred benefits for directors

(2,013)

(1,828)

(10.1)

(2,039)

1.3

Total Shareholders’ Equity

2,533,062

2,426,662

4.4

2,447,941

3.5

Total Liabilities and Shareholders’ Equity

$  17,712,374

$     16,931,905

4.6

$        17,344,377

2.1

WESBANCO, INC.

Consolidated Selected Financial Highlights

Page 8

(unaudited, dollars in thousands)

Average balance sheet and

net interest margin analysis

For the Three Months Ended Dec. 31,

For the Twelve Months Ended Dec. 31, 

2023

2022

2023

2022

Average 

Average

Average 

Average

Average 

Average

Average 

Average

Assets

Balance

Rate

Balance

Rate

Balance

Rate

Balance

Rate

Due from banks – interest bearing

$        332,670

6.25

%

$       178,706

4.32

%

$        348,109

5.43

%

$          611,482

0.94

%

Loans, net of unearned income (1)

11,490,379

5.61

10,456,648

4.68

11,132,618

5.36

10,083,925

4.19

Securities: (2)

    Taxable

3,010,064

2.35

3,429,372

2.16

3,150,781

2.33

3,461,414

1.91

    Tax-exempt (3)

770,186

3.02

811,593

3.00

783,697

3.04

789,564

3.02

        Total securities

3,780,250

2.48

4,240,965

2.32

3,934,478

2.47

4,250,978

2.12

Other earning assets 

52,879

8.57

19,494

3.20

55,368

6.26

15,265

3.66

         Total earning assets (3)

15,656,178

4.88

%

14,895,813

4.00

%

15,470,573

4.63

%

14,961,650

3.47

%

Other assets

1,769,933

1,790,117

1,789,147

1,917,891

Total Assets

$  17,426,111

$  16,685,930

$  17,259,720

$     16,879,541

Liabilities and Shareholders’ Equity

Interest bearing demand deposits

$     3,417,220

2.75

%

$    3,169,673

0.91

%

$     3,243,786

2.25

%

$       3,314,384

0.37

%

Money market accounts 

1,985,203

2.86

1,739,874

0.43

1,763,921

2.08

1,774,152

0.20

Savings deposits

2,515,798

1.15

2,726,647

0.36

2,655,105

0.90

2,692,568

0.15

Certificates of deposit

1,191,583

2.79

931,853

0.32

1,008,950

1.83

1,098,614

0.37

    Total interest bearing deposits

9,109,804

2.34

8,568,047

0.57

8,671,762

1.75

8,879,718

0.27

Federal Home Loan Bank borrowings

1,080,163

5.45

282,934

3.69

1,138,247

5.21

175,104

2.27

Repurchase agreements

114,801

3.08

136,099

0.94

115,817

2.20

146,590

0.39

Subordinated debt and junior subordinated debt 

282,004

5.84

281,265

5.27

281,788

5.85

248,192

4.38

      Total interest bearing liabilities (4)

10,586,772

2.76

%

9,268,345

0.82

%

10,207,614

2.25

%

9,449,604

0.42

%

Non-interest bearing demand deposits

4,086,366

4,763,773

4,316,245

4,708,758

Other liabilities

284,448

243,051

261,234

205,670

Shareholders’ equity

2,468,525

2,410,761

2,474,627

2,515,509

Total Liabilities and Shareholders’ Equity

$  17,426,111

$  16,685,930

$  17,259,720

$     16,879,541

Taxable equivalent net interest spread

2.12

%

3.18

%

2.38

%

3.05

%

Taxable equivalent net interest margin 

3.02

%

3.49

%

3.14

%

3.20

%

(1) Gross of allowance for loan losses and net of unearned income.  Includes non-accrual and loans held for sale.  Loan fees included in interest income on loans were $0.7 million and $0.8 million for the three months ended December 31, 2023 and 2022, respectively, and were $2.7 million and $8.8 million for the years ended December 31, 2023 and 2022, respectively.  Additionally, loan accretion included in interest income on loans acquired from prior acquisitions was $1.0 million and $1.8 million for the three months ended December 31, 2023 and 2022, respectively, and $4.5 million and $8.0 million for the years ended December 31, 2023 and 2022, respectively.
  

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

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

(4) Accretion on interest bearing liabilities acquired from prior acquisitions was $0.2 million for both the three months ended December 31, 2023 and 2022, and $0.5 million and $1.1 million for the years ended December 31, 2023 and 2022, respectively.

WESBANCO, INC.

Consolidated Selected Financial Highlights

 Page 9 

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

Quarter Ended

Statement of Income

Dec. 31,

Sept. 30,

June 30,

Mar. 31,

Dec. 31,

Interest and dividend income

2023

2023

2023

2023

2022

Loans, including fees

$        162,498

$          155,206

$          145,741

$          133,406

$          123,307

Interest and dividends on securities:

Taxable 

17,798

18,082

18,483

19,086

18,655

Tax-exempt

4,639

4,679

4,723

4,790

4,853

Total interest and dividends on securities

22,437

22,761

23,206

23,876

23,508

Other interest income 

6,383

5,622

7,108

3,273

2,103

          Total interest and dividend income

191,318

183,589

176,055

160,555

148,918

Interest expense

Interest bearing demand deposits

23,686

20,873

17,203

11,106

7,264

Money market deposits

14,302

10,841

7,220

4,252

1,890

Savings deposits

7,310

6,699

5,860

4,000

2,454

Certificates of deposit

8,380

5,983

2,906

1,203

742

Total interest expense on deposits

53,678

44,396

33,189

20,561

12,350

Federal Home Loan Bank borrowings

14,841

16,463

16,713

11,300

2,634

Other short-term borrowings

891

745

492

418

324

Subordinated debt and junior subordinated debt

4,150

4,303

4,094

3,944

3,736

Total interest expense

73,560

65,907

54,488

36,223

19,044

Net interest income 

117,758

117,682

121,567

124,332

129,874

Provision for credit losses

4,803

6,327

3,028

3,577

3,123

Net interest income after provision for credit losses

112,955

111,355

118,539

120,755

126,751

Non-interest income

Trust fees

7,019

6,705

6,918

7,494

6,672

Service charges on deposits

6,989

6,726

6,232

6,170

6,762

Electronic banking fees

4,890

4,949

5,010

4,605

4,695

Net swap fee and valuation (loss)/income 

(345)

3,845

2,612

799

1,015

Net securities brokerage revenue

2,563

2,394

2,523

2,576

2,556

Bank-owned life insurance

3,455

2,398

3,189

1,959

2,464

Mortgage banking income

650

975

601

426

621

Net securities gains/(losses)

887

(337)

205

145

(600)

Net gains/(losses) on other real estate owned and other assets

445

(28)

871

232

550

Other income

3,521

3,252

3,680

3,247

3,035

Total non-interest income

30,074

30,879

31,841

27,653

27,770

Non-interest expense

Salaries and wages

45,164

45,351

44,471

41,952

42,606

Employee benefits

11,409

11,922

11,511

12,060

9,198

Net occupancy

6,417

6,146

6,132

6,643

6,262

Equipment and software

9,648

9,132

8,823

9,063

8,712

Marketing

2,975

3,115

2,763

2,325

1,788

FDIC insurance 

3,369

3,125

2,871

2,884

2,051

Amortization of intangible assets

2,243

2,262

2,282

2,301

2,541

Restructuring and merger-related expense

641

35

3,153

11

Other operating expenses  

18,278

16,245

17,549

15,744

17,286

Total non-interest expense

99,503

97,939

96,437

96,125

90,455

Income before provision for income taxes

43,526

44,295

53,943

52,283

64,066

Provision for income taxes 

8,558

7,453

9,063

9,942

11,856

Net Income

34,968

36,842

44,880

42,341

52,210

Preferred stock dividends

2,531

2,531

2,531

2,531

2,531

Net income available to common shareholders

$          32,437

$            34,311

$            42,349

$            39,810

$            49,679

Taxable equivalent net interest income

$       118,991

$       118,926

$       122,822

$       125,605

$       131,164

Per common share data

Net income per common share – basic

$               0.55

$                0.58

$                0.71

$                0.67

$                0.84

Net income per common share – diluted

0.55

0.58

0.71

0.67

0.84

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

0.55

0.59

0.71

0.71

0.84

Dividends declared

0.36

0.35

0.35

0.35

0.35

Book value (period end)

40.23

38.80

39.10

39.34

38.55

Tangible book value (period end) (1)

21.28

19.82

20.08

20.27

19.43

Average common shares outstanding – basic

59,370,171

59,358,653

59,263,949

59,217,711

59,188,238

Average common shares outstanding – diluted

59,479,031

59,443,366

59,385,847

59,375,053

59,374,204

Period end common shares outstanding

59,376,435

59,364,696

59,355,062

59,246,569

59,198,963

Period end preferred shares outstanding

150,000

150,000

150,000

150,000

150,000

Full time equivalent employees

2,368

2,427

2,542

2,501

2,495

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

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

WESBANCO, INC.

Consolidated Selected Financial Highlights

 Page 10 

(unaudited, dollars in thousands)

Quarter Ended

Dec. 31,

Sept. 30,

June 30,

Mar. 31, 

Dec. 31,

Asset quality data

2023

2023

2023

2023

2022

Non-performing assets:

Troubled debt restructurings – accruing

$                –

$                –

$                –

$                –

$           3,230

Non-accrual loans:

Troubled debt restructurings

1,711

Other non-accrual loans

26,808

29,878

31,555

39,216

36,474

    Total non-accrual loans

26,808

29,878

31,555

39,216

38,185

    Total non-performing loans 

26,808

29,878

31,555

39,216

41,415

Other real estate and repossessed assets

1,497

1,333

1,432

1,554

1,486

Total non-performing assets

$       28,305

$         31,211

$         32,987

$         40,770

$         42,901

Past due loans (1):

Loans past due 30-89 days

$       22,875

$         16,030

$         18,348

$         12,920

$         15,439

Loans past due 90 days or more

9,638

8,606

5,147

4,570

5,443

Total past due loans

$       32,513

$         24,636

$         23,495

$         17,490

$         20,882

Criticized and classified loans (2):

Criticized loans

$    183,174

$       180,136

$       119,771

$       116,608

$       147,945

Classified loans

75,497

70,997

67,036

57,222

102,555

Total criticized and classified loans

$    258,671

$       251,133

$       186,807

$       173,830

$       250,500

Loans past due 30-89 days / total portfolio loans 

0.20

%

0.14

%

0.16

%

0.12

%

0.14

%

Loans past due 90 days or more / total portfolio loans

0.08

0.08

0.05

0.04

0.05

Non-performing loans / total portfolio loans

0.23

0.26

0.28

0.36

0.39

Non-performing assets / total portfolio loans, other

real estate and repossessed assets

0.24

0.28

0.30

0.37

0.40

Non-performing assets / total assets

0.16

0.18

0.19

0.24

0.25

Criticized and classified loans / total portfolio loans

2.22

2.22

1.68

1.60

2.34

Allowance for credit losses

Allowance for credit losses – loans

$    130,675

$       126,615

$       120,166

$       118,698

$       117,790

Allowance for credit losses – loan commitments

8,604

9,729

10,124

9,127

8,368

Provision for credit losses

4,803

6,327

3,028

3,577

3,123

Net loan and deposit account overdraft charge-offs and recoveries

1,857

286

581

1,919

493

Annualized net loan charge-offs and recoveries / average loans

0.06

%

0.01

%

0.02

%

0.07

%

0.02

%

Allowance for credit losses – loans / total portfolio loans

1.12

%

1.12

%

1.08

%

1.09

%

1.10

%

Allowance for credit losses – loans / non-performing loans

4.87

x

4.24

x

3.81

x

3.03

x

2.84

x

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

loans past due 

2.20

x

2.32

x

2.18

x

2.09

x

1.89

x

Dec. 31,

Sept. 30,

June 30,

Mar. 31,

Dec. 31,

2023

2023

2023

2023

2022

Capital ratios

Tier I leverage capital

9.87

%

9.84

%

9.78

%

9.82

%

9.90

%

Tier I risk-based capital

12.05

12.07

12.12

12.22

12.33

Total risk-based capital

14.91

14.97

14.83

14.97

15.11

Common equity tier 1 capital ratio (CET 1)

10.99

11.00

11.04

11.11

11.20

Average shareholders’ equity to average assets

14.17

14.29

14.42

14.48

14.45

Tangible equity to tangible assets (3)

8.49

8.15

8.24

8.33

8.19

Tangible common equity to tangible assets (3)

7.62

7.26

7.35

7.44

7.28

(1) Excludes non-performing loans.

(2) Criticized and classified commercial loans may include loans that are also reported as non-performing or past due.

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

WESBANCO, INC.

Non-GAAP Financial Measures

Page 11

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

Three Months Ended

Year to Date 

Dec. 31,

Sept. 30,

June 30,

Mar. 31,

Dec. 31,

Dec. 31,

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

2023

2023

2023

2023

2022

2023

2022

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

Net income available to common shareholders

$         32,437

$           34,311

$           42,349

$           39,810

$           49,679

$           148,907

$         181,988

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

506

28

2,491

9

3,026

1,361

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

32,437

34,817

42,377

42,301

49,688

151,933

183,349

Average total assets

$ 17,426,111

$    17,341,959

$    17,294,346

$    16,970,554

$    16,685,930

$     17,259,720

$    16,879,541

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

0.74 %

0.80 %

0.98 %

1.01 %

1.18 %

0.88 %

1.09 %

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

Net income available to common shareholders

$         32,437

$           34,311

$           42,349

$           39,810

$           49,679

$           148,907

$         181,988

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

506

28

2,491

9

3,026

1,361

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

32,437

34,817

42,377

42,301

49,688

151,933

183,349

Average total shareholders’ equity

$   2,468,525

$      2,478,662

$      2,493,096

$      2,458,067

$      2,410,761

$       2,474,627

$      2,515,509

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

5.21 %

5.57 %

6.82 %

6.98 %

8.18 %

6.14 %

7.29 %

Return on average tangible equity:

Net income available to common shareholders

$         32,437

$           34,311

$           42,349

$           39,810

$           49,679

$           148,907

$         181,988

Plus: amortization of intangibles (1)

1,772

1,787

1,803

1,818

2,007

7,180

8,120

Net income available to common shareholders before amortization of intangibles 

34,209

36,098

44,152

41,628

51,686

156,087

190,108

Average total shareholders’ equity

2,468,525

2,478,662

2,493,096

2,458,067

2,410,761

2,474,627

2,515,509

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

(1,125,593)

(1,127,404)

(1,129,155)

(1,131,027)

(1,132,894)

(1,128,277)

(1,136,062)

Average tangible equity

$   1,342,932

$      1,351,258

$      1,363,941

$      1,327,040

$      1,277,867

$       1,346,350

$      1,379,447

Return on average tangible equity (annualized)  (2)

10.11 %

10.60 %

12.98 %

12.72 %

16.05 %

11.59 %

13.78 %

Average tangible common equity

$   1,198,448

$      1,206,774

$      1,219,457

$      1,182,556

$      1,133,383

$       1,201,866

$      1,234,963

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

11.32 %

11.87 %

14.52 %

14.28 %

18.09 %

12.99 %

15.39 %

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

Net income available to common shareholders

$         32,437

$           34,311

$           42,349

$           39,810

$           49,679

$           148,907

$         181,988

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

506

28

2,491

9

3,026

1,361

Plus: amortization of intangibles  (1)

1,772

1,787

1,803

1,818

2,007

7,180

8,120

Net income available to common shareholders before amortization of intangibles 

     and excluding after-tax restructuring and merger-related expenses

34,209

36,604

44,180

44,119

51,695

159,113

191,469

Average total shareholders’ equity

2,468,525

2,478,662

2,493,096

2,458,067

2,410,761

2,474,627

2,515,509

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

(1,125,593)

(1,127,404)

(1,129,155)

(1,131,027)

(1,132,894)

(1,128,277)

(1,136,062)

Average tangible equity

$   1,342,932

$      1,351,258

$      1,363,941

$      1,327,040

$      1,277,867

$       1,346,350

$      1,379,447

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

10.11 %

10.75 %

12.99 %

13.48 %

16.05 %

11.82 %

13.88 %

Average tangible common equity

$   1,198,448

$      1,206,774

$      1,219,457

$      1,182,556

$      1,133,383

$       1,201,866

$      1,234,963

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

11.32 %

12.03 %

14.53 %

15.13 %

18.10 %

13.24 %

15.50 %

Efficiency ratio:

Non-interest expense

$         99,503

$           97,939

$           96,437

$           96,125

$           90,455

$           390,002

$         356,966

Less: restructuring and merger-related expense

(641)

(35)

(3,153)

(11)

(3,830)

(1,723)

Non-interest expense excluding restructuring and merger-related expense

99,503

97,298

96,402

92,972

90,444

386,172

355,243

Net interest income on a fully taxable equivalent basis

118,991

118,926

122,822

125,605

131,164

486,343

479,315

Non-interest income

30,074

30,879

31,841

27,653

27,770

120,447

117,391

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

$       149,065

$         149,805

$         154,663

$         153,258

$         158,934

$           606,790

$         596,706

Efficiency ratio

66.75 %

64.95 %

62.33 %

60.66 %

56.91 %

63.64 %

59.53 %

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

Net income available to common shareholders

$         32,437

$           34,311

$           42,349

$           39,810

$           49,679

$           148,907

$         181,988

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

506

28

2,491

9

3,026

1,361

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

$         32,437

$           34,817

$           42,377

$           42,301

$           49,688

$           151,933

$         183,349

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

Net income per common share – diluted

$              0.55

$               0.58

$               0.71

$               0.67

$               0.84

$                  2.51

$               3.02

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

0.01

0.04

0.05

0.02

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

$              0.55

$               0.59

$               0.71

$               0.71

$               0.84

$                  2.56

$               3.04

Period End

Dec. 31,

Sept. 30,

June 30,

March 31,

Dec. 31,

2023

2023

2023

2023

2022

Tangible book value per share:

Total shareholders’ equity

$   2,533,062

$      2,447,941

$      2,464,998

$      2,475,457

$      2,426,662

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

(1,124,811)

(1,126,583)

(1,128,371)

(1,130,172)

(1,131,990)

Less: preferred shareholders equity

(144,484)

(144,484)

(144,484)

(144,484)

(144,484)

Tangible common equity

1,263,767

1,176,874

1,192,143

1,200,801

1,150,188

Common shares outstanding

59,376,435

59,364,696

59,355,062

59,246,569

59,198,963

Tangible book value per share

$           21.28

$             19.82

$             20.08

$             20.27

$             19.43

Tangible common equity to tangible assets:

Total shareholders’ equity

$   2,533,062

$      2,447,941

$      2,464,998

$      2,475,457

$      2,426,662

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

(1,124,811)

(1,126,583)

(1,128,371)

(1,130,172)

(1,131,990)

Tangible equity

1,408,251

1,321,358

1,336,627

1,345,285

1,294,672

Less: preferred shareholders equity

(144,484)

(144,484)

(144,484)

(144,484)

(144,484)

Tangible common equity

1,263,767

1,176,874

1,192,143

1,200,801

1,150,188

Total assets

17,712,374

17,344,377

17,356,954

17,274,626

16,931,905

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

(1,124,811)

(1,126,583)

(1,128,371)

(1,130,172)

(1,131,990)

Tangible assets

$ 16,587,563

$    16,217,794

$    16,228,583

$    16,144,454

$    15,799,915

Tangible equity to tangible assets

8.49 %

8.15 %

8.24 %

8.33 %

8.19 %

Tangible common equity to tangible assets

7.62 %

7.26 %

7.35 %

7.44 %

7.28 %

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

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

WESBANCO, INC.

Additional Non-GAAP Financial Measures

Page 12

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

Three Months Ended

Year to Date 

Dec. 31,

Sept. 30,

June 30,

Mar. 31,

Dec. 31,

Dec. 31,

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

2023

2023

2023

2023

2022

2023

2022

Pre-tax, pre-provision income:

Income before provision for income taxes

$         43,526

$           44,295

$           53,943

$           52,283

$           64,066

$       194,049

$         236,401

Add: provision for credit losses

4,803

6,327

3,028

3,577

3,123

17,734

(1,663)

Pre-tax, pre-provision income

$         48,329

$           50,622

$           56,971

$           55,860

$           67,189

$       211,783

$         234,738

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

Income before provision for income taxes

$         43,526

$           44,295

$           53,943

$           52,283

$           64,066

$       194,049

$         236,401

Add: provision for credit losses

4,803

6,327

3,028

3,577

3,123

17,734

(1,663)

Add: restructuring and merger-related expenses

641

35

3,153

11

3,830

1,723

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

$         48,329

$           51,263

$           57,006

$           59,013

$           67,200

$       215,613

$         236,461

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

Income before provision for income taxes

$         43,526

$           44,295

$           53,943

$           52,283

$           64,066

$       194,049

$         236,401

Add: provision for credit losses

4,803

6,327

3,028

3,577

3,123

17,734

(1,663)

Add: restructuring and merger-related expenses

641

35

3,153

11

3,830

1,723

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

48,329

51,263

57,006

59,013

67,200

215,613

236,461

Average total assets

$ 17,426,111

$    17,341,959

$    17,294,346

$    16,970,554

$    16,685,930

$ 17,259,720

$    16,879,541

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

1.10 %

1.17 %

1.32 %

1.41 %

1.60 %

1.25 %

1.40 %

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

Income before provision for income taxes

$         43,526

$           44,295

$           53,943

$           52,283

$           64,066

$       194,049

$         236,401

Add: provision for credit losses

4,803

6,327

3,028

3,577

3,123

17,734

(1,663)

Add: restructuring and merger-related expenses

641

35

3,153

11

3,830

1,723

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

48,329

51,263

57,006

59,013

67,200

215,613

236,461

Average total shareholders’ equity

$   2,468,525

$      2,478,662

$      2,493,096

$      2,458,067

$      2,410,761

$   2,474,627

$      2,515,509

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

7.77 %

8.21 %

9.17 %

9.74 %

11.06 %

8.71 %

9.40 %

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

Income before provision for income taxes

$         43,526

$           44,295

$           53,943

$           52,283

$           64,066

$       194,049

$         236,401

Add: provision for credit losses

4,803

6,327

3,028

3,577

3,123

17,734

(1,663)

Add: amortization of intangibles

2,243

2,262

2,282

2,301

2,541

9,088

10,278

Add: restructuring and merger-related expenses

641

35

3,153

11

3,830

1,723

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

50,572

53,525

59,288

61,314

69,741

224,701

246,739

Average total shareholders’ equity

2,468,525

2,478,662

2,493,096

2,458,067

2,410,761

2,474,627

2,515,509

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

(1,125,593)

(1,127,404)

(1,129,155)

(1,131,027)

(1,132,894)

(1,128,277)

(1,136,062)

Average tangible equity

$   1,342,932

$      1,351,258

$      1,363,941

$      1,327,040

$      1,277,867

$   1,346,350

$      1,379,447

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

14.94 %

15.72 %

17.44 %

18.74 %

21.65 %

16.69 %

17.89 %

Average tangible common equity

$   1,198,448

$      1,206,774

$      1,219,457

$      1,182,556

$      1,133,383

$   1,201,866

$      1,234,963

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

16.74 %

17.60 %

19.50 %

21.03 %

24.41 %

18.70 %

19.98 %

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

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

SOURCE WesBanco, Inc.

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