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).
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For the Three Months Ended December 31, |
For the Twelve Months Ended December 31, |
|||||||||||||||||
|
2023 |
2022 |
2023 |
2022 |
|||||||||||||||
|
(unaudited, dollars in thousands, |
Net Income |
Diluted |
Net Income |
Diluted |
Net Income |
Diluted |
Net Income |
Diluted |
||||||||||
|
Net income available to common |
$ 32,437 |
$ 0.55 |
$ 49,688 |
$ 0.84 |
$ 151,933 |
$ 2.56 |
$ 183,349 |
$ 3.04 |
||||||||||
|
Less: After-tax restructuring and |
– |
– |
(9) |
– |
(3,026) |
(0.05) |
(1,361) |
(0.02) |
||||||||||
|
Net income available to common |
$ 32,437 |
$ 0.55 |
$ 49,679 |
$ 0.84 |
$ 148,907 |
$ 2.51 |
$ 181,988 |
$ 3.02 |
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(1) See non-GAAP financial measures for additional information relating to the calculation of these items. |
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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.
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WESBANCO, INC. |
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Consolidated Selected Financial Highlights |
Page 5 |
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(unaudited, dollars in thousands, except shares and per share amounts) |
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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 |
||||||||
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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) |
||||||||
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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) |
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|
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) |
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|
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 |
||||||||
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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) |
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|
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 |
– |
||||||||
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(1) See non-GAAP financial measures for additional information relating to the calculation of this item. |
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(2) Certain items excluded from the calculation consist of after-tax restructuring and merger-related expenses. |
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NM = Not Meaningful |
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WESBANCO, INC. |
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Consolidated Selected Financial Highlights |
Page 6 |
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(unaudited, dollars in thousands) |
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Selected ratios |
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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) |
||||||||||||||
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Return on average equity |
6.02 |
7.23 |
(16.74) |
||||||||||||||
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Return on average equity, excluding |
|||||||||||||||||
|
after-tax restructuring and merger-related expenses (1) |
6.14 |
7.29 |
(15.78) |
||||||||||||||
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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) |
||||||||||||||
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Return on average tangible common equity, excluding |
|||||||||||||||||
|
after-tax restructuring and merger-related expenses (1) |
13.24 |
15.50 |
(14.58) |
||||||||||||||
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Yield on earning assets (2) |
4.63 |
3.47 |
33.43 |
||||||||||||||
|
Cost of interest bearing liabilities |
2.25 |
0.42 |
435.71 |
||||||||||||||
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Net interest spread (2) |
2.38 |
3.05 |
(21.97) |
||||||||||||||
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Net interest margin (2) |
3.14 |
3.20 |
(1.88) |
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Efficiency (1) (2) |
63.64 |
59.53 |
6.90 |
||||||||||||||
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Average loans to average deposits |
85.71 |
74.21 |
15.50 |
||||||||||||||
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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 |
|||||||||||||||
|
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) |
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|
Tangible assets |
$ 16,587,563 |
$ 16,217,794 |
$ 16,228,583 |
$ 16,144,454 |
$ 15,799,915 |
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|
Tangible equity to tangible assets |
8.49 % |
8.15 % |
8.24 % |
8.33 % |
8.19 % |
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|
Tangible common equity to tangible assets |
7.62 % |
7.26 % |
7.35 % |
7.44 % |
7.28 % |
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|
(1) Tax effected at 21% for all periods presented. |
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|
(2) The ratios are annualized by utilizing actual numbers of days in the quarter versus the year. |
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WESBANCO, INC. |
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Additional Non-GAAP Financial Measures |
Page 12 |
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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 |
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Three Months Ended |
Year to Date |
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|
Dec. 31, |
Sept. 30, |
June 30, |
Mar. 31, |
Dec. 31, |
Dec. 31, |
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|
(unaudited, dollars in thousands, except shares and per share amounts) |
2023 |
2023 |
2023 |
2023 |
2022 |
2023 |
2022 |
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|
Pre-tax, pre-provision income: |
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|
Income before provision for income taxes |
$ 43,526 |
$ 44,295 |
$ 53,943 |
$ 52,283 |
$ 64,066 |
$ 194,049 |
$ 236,401 |
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|
Add: provision for credit losses |
4,803 |
6,327 |
3,028 |
3,577 |
3,123 |
17,734 |
(1,663) |
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|
Pre-tax, pre-provision income |
$ 48,329 |
$ 50,622 |
$ 56,971 |
$ 55,860 |
$ 67,189 |
$ 211,783 |
$ 234,738 |
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|
Pre-tax, pre-provision income, excluding restructuring and merger-related expenses: |
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|
Income before provision for income taxes |
$ 43,526 |
$ 44,295 |
$ 53,943 |
$ 52,283 |
$ 64,066 |
$ 194,049 |
$ 236,401 |
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|
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 |
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|
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 |
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|
Return on average assets, excluding certain items (1): |
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|
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 |
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|
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 |
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|
Average total assets |
$ 17,426,111 |
$ 17,341,959 |
$ 17,294,346 |
$ 16,970,554 |
$ 16,685,930 |
$ 17,259,720 |
$ 16,879,541 |
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Return on average assets, excluding certain items (annualized) (1) (2) |
1.10 % |
1.17 % |
1.32 % |
1.41 % |
1.60 % |
1.25 % |
1.40 % |
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|
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 |
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|
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 |
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|
Return on average equity, excluding certain items (annualized) (1) (2) |
7.77 % |
8.21 % |
9.17 % |
9.74 % |
11.06 % |
8.71 % |
9.40 % |
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|
Return on average tangible equity, excluding certain items (1): |
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|
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) |
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|
Add: amortization of intangibles |
2,243 |
2,262 |
2,282 |
2,301 |
2,541 |
9,088 |
10,278 |
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|
Add: restructuring and merger-related expenses |
– |
641 |
35 |
3,153 |
11 |
3,830 |
1,723 |
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|
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 |
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|
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 |
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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) |
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|
Average tangible equity |
$ 1,342,932 |
$ 1,351,258 |
$ 1,363,941 |
$ 1,327,040 |
$ 1,277,867 |
$ 1,346,350 |
$ 1,379,447 |
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|
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 % |
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|
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 |
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|
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 % |
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|
(1) Certain items excluded from the calculations consist of credit provisions, tax provisions and restructuring and merger-related expenses. |
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|
(2) The ratios are annualized by utilizing actual numbers of days in the quarter versus the year. |
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SOURCE WesBanco, Inc.