Successful acquisition of Premier Financial combined with strong organic loan and deposit growth
WHEELING, W.Va., April 29, 2025 /PRNewswire/ — WesBanco, Inc. (“WesBanco” or “Company”) (Nasdaq: WSBC), a diversified, multi-state bank holding company, today announced net income and related earnings per share for the three months ended March 31, 2025, which included the closing of the previously announced Premier Financial Corp. (“PFC”) acquisition. WesBanco reported a net loss available to common shareholders for the first quarter of 2025 of $11.5 million, or $(0.15) per share, which reflected the impact of a day one provision for credit losses and other expenses related to the acquisition, as compared to net income of $33.2 million, or $0.56 per share, for the first quarter of 2024. As noted in the following table, net income available to common shareholders, excluding after-tax day one provision for credit losses on acquired loans and restructuring and merger-related expenses, for the three months ended March 31, 2025 was $51.2 million, or $0.66 per share, as compared to $33.2 million, or $0.56 per share, in the prior year period (non-GAAP measures).
Under the Current Expected Credit Loss (“CECL”) accounting standard, which ensures a forward-looking approach to credit risk, WesBanco was required to estimate and record expected credit losses over the life of the acquired PFC loans. At March 31, 2025, we recorded an allowance for credit losses of $88.5 million and a $59.4 million provision for the acquired loan portfolio. This required day one provision for credit losses on acquired loans is considered a non-recurring earnings impact as it is associated with the closing of the PFC acquisition and not indicative of operational or credit quality trends. The first quarter provision for credit losses was $68.9 million and the allowance for credit losses was $233.6 million at March 31st, which provided a coverage ratio of 1.25%, as compared to 1.10% as of December 31, 2024. Excluded from the allowance for credit losses and related coverage ratio are fair market value adjustments on previously acquired loans representing 1.88% of total portfolio loans.
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For the Three Months Ended March 31, |
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|
2025 |
2024 |
||||||||
|
(unaudited, dollars in thousands, |
Net Income |
Diluted |
Net Income |
Diluted |
|||||
|
Net (loss)/income available to common shareholders (GAAP) |
$ (11,523) |
$ (0.15) |
$ 33,162 |
$ 0.56 |
|||||
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Add: After-tax day one provision for credit losses on acquired loans |
46,926 |
0.60 |
– |
– |
|||||
|
Add: After-tax restructuring and merger-related expenses |
15,808 |
0.21 |
– |
– |
|||||
|
Adjusted net income available to common shareholders (Non-GAAP) (1) |
$ 51,211 |
$ 0.66 |
$ 33,162 |
$ 0.56 |
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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 March 31, 2025:
Successfully closed the acquisition of PFC, on February 28th, creating a regional financial services institution with $27.4 billion in assets, significant economies of scale, and strong pro forma profitability metrics
Total organic loan growth was 7.8% year-over-year and 4.4% over the sequential quarter, annualized, and fully funded through deposit growth
Reflecting $5.9 billion of loans from PFC and organic growth, total loans increased 57.3% year-over-year to $18.7 billion
Total organic deposit growth was 6.8% year-over-year and 8.1% over the sequential quarter, annualized
Organic deposit growth, excluding certificates of deposit, increased 4.8% year-over-year and 10.6% over the sequential quarter, annualized
Reflecting $6.9 billion of deposits from PFC and organic growth, total deposits increased 57.8% year-over-year to $21.3 billion
Average loans to average deposits were 89.3%, providing continued capacity to fund loan growth
Net interest margin of 3.35% increased 32 basis points sequentially, as PFC benefited the margin by approximately 25 basis points through interest mark accretion and securities restructuring
Reflecting the PFC acquisition and organic growth, Trust and Investment Services (“WTIS”) assets under management increased to a record $7.0 billion and broker-dealer securities account values (including annuities) increased to a record $2.4 billion
Efficiency ratio of 58.6% improved 803 basis points year-over-year and 261 basis points sequentially due to the benefits of the PFC acquisition, as well as a continued focus on expense management and driving positive operating leverage
Key credit quality metrics continued to remain at low levels and favorable to peer bank averages (based upon the prior four quarters for banks with total assets between $20 billion and $50 billion)
“Our first quarter results demonstrate continued solid operational performance, as we again delivered strong organic loan and deposit growth while driving positive operating leverage. We also continued to strengthen our balance sheet and net interest margin by funding loan growth with deposits and reducing higher-cost borrowings,” said Jeff Jackson, President and Chief Executive Officer, WesBanco. “This quarter also marked a significant milestone for WesBanco as we successfully completed our acquisition of Premier Financial Corp., a merger that expands and strengthens our market position and accelerates our long-term growth strategy. We are pleased to welcome Premier’s talented team, loyal customers and strong community partners to WesBanco. As we move forward together, our teams are focused on executing a seamless integration and delivering on the full potential of the combined organization for all our stakeholders.”
Balance SheetWesBanco’s balance sheet, as of March 31, 2025, reflects both the PFC acquisition and organic growth. Total assets increased 54.2% year-over-year to $27.4 billion, including total portfolio loans of $18.7 billion and total securities of $4.3 billion. Total portfolio loans increased 57.3% year-over-year due to acquired PFC loans of $5.9 billion and organic growth of $0.9 billion, with $0.8 billion from the commercial teams. Commercial real estate payoffs totaled approximately $83 million during the first quarter of 2025. Securities, which represented 15.8% of total assets, increased $1 billion year-over-year due to the addition of PFC securities. In addition, approximately $775 million of lower coupon or variable rate PFC securities were sold and replaced with approximately $475 million of longer-term, higher coupon fixed rate securities.
Deposits of $21.3 billion increased 57.8% year-over-year due to acquired PFC deposits of $6.9 billion and organic growth. Total organic deposit growth was $922 million, or 6.8%, year-over-year and $285 million quarter-over-quarter which fully funded loan growth of $921 million and $138 million, respectively. Reflecting the addition of PFC deposits, which included $1.3 billion of certificates of deposit, total demand deposits represented 49% of total deposits, with the non-interest bearing component representing 25%.
Federal Home Loan Bank (“FHLB”) borrowings totaled $1.5 billion, of which approximately 93% have 2025 maturities, increased $476.5 million, or 47.7%, from December 31, 2024, due to the addition of borrowings from PFC.
Credit QualityAs of March 31, 2025, total loans past due, criticized and classified loans, non-performing loans, and non-performing assets as percentages of the loan portfolio and total assets have remained low, from a historical perspective, and within a consistent range through the last five years. Total loans past due as a percent of the loan portfolio decreased 4 basis points quarter-over-quarter to 0.43%, while non-performing assets as a percentage of total assets increased 8 basis points to 0.30%.
Net Interest Margin and IncomeThe first quarter margin of 3.35% improved 32 basis points compared to the fourth quarter and 43 basis points on a year-over-year basis, through a combination of higher loan and securities yields, lower funding costs, and higher purchase accounting accretion. Despite higher-cost certificates of deposit from PFC, deposit funding costs of 255 basis points for the first quarter of 2025 decreased as compared to 271 basis points in the fourth quarter of 2024 and 256 basis points in the prior year period. When including non-interest bearing deposits, deposit funding costs for the first quarter were 188 basis points. Interest rate mark accretion from the PFC acquisition, in addition to the securities restructuring, benefited the first quarter net interest margin by approximately 25 basis points.
Net interest income for the first quarter of 2025 was $158.5 million, an increase of $44.6 million, or 39.1% year-over-year, reflecting the impact of a larger balance sheet from the PFC acquisition, loan growth, higher loan and securities yields, lower FHLB borrowings, and $9.1 million of purchase accounting accretion from acquisitions.
Non-Interest IncomeFor the first quarter of 2025, non-interest income of $34.7 million increased $4.0 million, or 13.2%, from the first quarter of 2024 due primarily to the acquisition of PFC which drove higher service charges on deposits, bank-owned life insurance (“BOLI”), digital banking income, and trust fees. Service charges on deposits increased $1.8 million year-over-year, reflecting the addition of PFC, fee income from new products and services and treasury management, and increased general consumer spending. BOLI increased $1.4 million year-over-year due to a $0.9 million death benefit received and the addition of PFC. Gross swap fees were $2.0 million in the first quarter, compared to $0.8 million in the prior year period, while fair value adjustments were a loss of $1.0 million compared to a gain of $0.8 million, respectively.
Non-Interest ExpenseReflecting the closing of the PFC acquisition on February 28th, non-interest expense, excluding restructuring and merger-related costs, for the three months ended March 31, 2025 was $114.0 million, a $16.8 million, or 17.2%, increase year-over-year primarily due to the addition of the PFC expense base associated with approximately 900 employees and 70 financial centers. Equipment and software expense of $13.1 million, includes the additional cost of operating two core systems until conversion to one platform in mid-May. Amortization of intangible assets of $4.2 million increased $2.1 million year-over-year due to the core deposit intangible asset that was created from the acquisition of PFC.
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. In conjunction with the February 28th closing of the PFC acquisition, WesBanco issued 28.7 million shares of common stock to acquire the outstanding shares of PFC, which increased total capital by $1.0 billion and, as anticipated, modestly impacted capital ratios. At March 31, 2025, Tier I leverage was 11.01%, Tier I risk-based capital ratio was 10.69%, common equity Tier 1 capital ratio (“CET 1”) was 9.99%, and total risk-based capital was 13.59%. In addition, the tangible common equity to tangible assets ratio was 7.47% due to strong earnings and the third quarter common equity raise.
Conference Call and WebcastWesBanco will host a conference call to discuss the Company’s financial results for the first quarter of 2025 at 9:00 a.m. ET on Wednesday, April 30, 2025. Interested parties can access the live webcast of the conference call through the Investor Relations section of the Company’s website, www.wesbanco.com. Participants can also listen to the conference call by dialing 888-347-6607, 855-669-9657 for Canadian callers, or 1-412-902-4290 for international callers, and asking to be joined into the WesBanco call. Please log in or dial in at least 10 minutes prior to the start time to ensure a connection.
A replay of the conference call will be available by dialing 877-344-7529, 855-669-9658 for Canadian callers, or 1-412-317-0088 for international callers, and providing the access code of 1119838. The replay will begin at approximately 12:00 p.m. ET on April 30, 2025 and end at 12 a.m. ET on May 14, 2025. 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, 2024 and documents subsequently filed by WesBanco with the Securities and Exchange Commission (“SEC”), 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, that the businesses of WesBanco and Premier may not be integrated successfully or such integration may take longer to accomplish than expected; the expected cost savings and any revenue synergies from the merger of WesBanco and Premier may not be fully realized within the expected timeframes; disruption from the merger of WesBanco and Premier may make it more difficult to maintain relationships with clients, associates, or suppliers; 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.
While forward-looking statements reflect our good-faith beliefs, they are not guarantees of future performance. All forward-looking statements are necessarily only estimates of future results. Accordingly, actual results may differ materially from those expressed in or contemplated by the particular forward-looking statement, and, therefore, you are cautioned not to place undue reliance on such statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by applicable law.
Statements in this presentation with respect to the benefits of the merger between WesBanco and Premier, the parties’ plans, obligations, expectations, and intentions, and the statements with respect to accretion, earn back of tangible book value, tangible book value dilution and internal rate of return, constitute forward-looking statements as defined by federal securities laws. Such statements are subject to numerous assumptions, risks, and uncertainties. Actual results could differ materially from those contained or implied by such statements for a variety of factors including: the businesses of WesBanco and Premier may not be integrated successfully or such integration may take longer to accomplish than expected; the expected cost savings and any revenue synergies from the merger may not be fully realized within the expected time frames; disruption from the merger may make it more difficult to maintain relationships with clients, associates, or suppliers; changes in economic conditions; movements in interest rates; competitive pressures on product pricing and services; success and timing of other business strategies; the nature, extent, and timing of governmental actions and reforms; extended disruption of vital infrastructure; and other factors described in WesBanco’s 2024 Annual Report on Form 10-K and documents subsequently filed by WesBanco with the Securities and Exchange Commission.
Non-GAAP Financial MeasuresIn 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 and excluding after-tax day one provision for credit losses on acquired loans; 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.With over 150 years as a community-focused, regional financial services partner, WesBanco Inc. (NASDAQ: WSBC) and its subsidiaries build lasting prosperity through relationships and solutions that empower our customers for success in their financial journeys. Customers across our eight-state footprint choose WesBanco for the comprehensive range and personalized delivery of our retail and commercial banking solutions, as well as trust, brokerage, wealth management and insurance services, all designed to advance their financial goals. Through the strength of our teams, we leverage large bank capabilities and local focus to help make every community we serve a better place for people and businesses to thrive. Headquartered in Wheeling, West Virginia, WesBanco has $27.4 billion in total assets, with our Trust and Investment Services holding $7.0 billion of assets under management and securities account values (including annuities) of $2.4 billion through our broker/dealer, as of March 31, 2025. Learn more at www.wesbanco.com and follow @WesBanco on Facebook, LinkedIn and Instagram.
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WESBANCO, INC. |
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Consolidated Selected Financial Highlights |
Page 6 |
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(unaudited, dollars in thousands, except shares and per share amounts) |
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For the Three Months Ended |
||||||||||
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Statement of Income |
March 31, |
|||||||||
|
Interest and dividend income |
2025 |
2024 |
% Change |
|||||||
|
Loans, including fees |
$ 218,409 |
$ 166,974 |
30.8 |
|||||||
|
Interest and dividends on securities: |
||||||||||
|
Taxable |
22,247 |
17,404 |
27.8 |
|||||||
|
Tax-exempt |
4,529 |
4,586 |
(1.2) |
|||||||
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Total interest and dividends on securities |
26,776 |
21,990 |
21.8 |
|||||||
|
Other interest income |
8,047 |
6,369 |
26.3 |
|||||||
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Total interest and dividend income |
253,232 |
195,333 |
29.6 |
|||||||
|
Interest expense |
||||||||||
|
Interest bearing demand deposits |
29,377 |
25,590 |
14.8 |
|||||||
|
Money market deposits |
21,134 |
16,114 |
31.2 |
|||||||
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Savings deposits |
7,359 |
7,667 |
(4.0) |
|||||||
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Certificates of deposit |
18,558 |
10,247 |
81.1 |
|||||||
|
Total interest expense on deposits |
76,428 |
59,618 |
28.2 |
|||||||
|
Federal Home Loan Bank borrowings |
13,034 |
17,000 |
(23.3) |
|||||||
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Other short-term borrowings |
1,122 |
674 |
66.5 |
|||||||
|
Subordinated debt and junior subordinated debt |
4,129 |
4,075 |
1.3 |
|||||||
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Total interest expense |
94,713 |
81,367 |
16.4 |
|||||||
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Net interest income |
158,519 |
113,966 |
39.1 |
|||||||
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Provision for credit losses |
68,883 |
4,014 |
NM |
|||||||
|
Net interest income after provision for credit losses |
89,636 |
109,952 |
(18.5) |
|||||||
|
Non-interest income |
||||||||||
|
Trust fees |
8,697 |
8,082 |
7.6 |
|||||||
|
Service charges on deposits |
8,587 |
6,784 |
26.6 |
|||||||
|
Digital banking income |
5,404 |
4,704 |
14.9 |
|||||||
|
Net swap fee and valuation income |
961 |
1,563 |
(38.5) |
|||||||
|
Net securities brokerage revenue |
2,701 |
2,548 |
6.0 |
|||||||
|
Bank-owned life insurance |
3,428 |
2,067 |
65.8 |
|||||||
|
Mortgage banking income |
1,140 |
693 |
64.5 |
|||||||
|
Net securities (losses) / gains |
(318) |
537 |
(159.2) |
|||||||
|
Net (losses) / gains on other real estate owned and other assets |
(40) |
154 |
(126.0) |
|||||||
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Other income |
4,105 |
3,497 |
17.4 |
|||||||
|
Total non-interest income |
34,665 |
30,629 |
13.2 |
|||||||
|
Non-interest expense |
||||||||||
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Salaries and wages |
48,577 |
42,997 |
13.0 |
|||||||
|
Employee benefits |
12,970 |
12,184 |
6.5 |
|||||||
|
Net occupancy |
7,778 |
6,623 |
17.4 |
|||||||
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Equipment and software |
13,050 |
10,008 |
30.4 |
|||||||
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Marketing |
2,382 |
1,885 |
26.4 |
|||||||
|
FDIC insurance |
4,187 |
3,448 |
21.4 |
|||||||
|
Amortization of intangible assets |
4,223 |
2,092 |
101.9 |
|||||||
|
Restructuring and merger-related expense |
20,010 |
– |
100.0 |
|||||||
|
Other operating expenses |
20,789 |
17,954 |
15.8 |
|||||||
|
Total non-interest expense |
133,966 |
97,191 |
37.8 |
|||||||
|
(Loss) / Income before provision for income taxes |
(9,665) |
43,390 |
(122.3) |
|||||||
|
(Benefit) provision for income taxes |
(673) |
7,697 |
(108.7) |
|||||||
|
Net (Loss) / Income |
(8,992) |
35,693 |
(125.2) |
|||||||
|
Preferred stock dividends |
2,531 |
2,531 |
– |
|||||||
|
Net (loss) / income available to common shareholders |
$ (11,523) |
$ 33,162 |
(134.7) |
|||||||
|
Taxable equivalent net interest income |
$ 159,723 |
$ 115,185 |
38.7 |
|||||||
|
Per common share data |
||||||||||
|
Net (loss) / income per common share – basic |
$ (0.15) |
$ 0.56 |
(126.8) |
|||||||
|
Net (loss) / income per common share – diluted |
(0.15) |
0.56 |
(126.8) |
|||||||
|
Adjusted net income per common share – diluted, excluding certain items (1)(2) |
0.66 |
0.56 |
17.9 |
|||||||
|
Dividends declared |
0.37 |
0.36 |
2.8 |
|||||||
|
Book value (period end) |
38.02 |
40.30 |
(5.7) |
|||||||
|
Tangible book value (period end) (1) |
20.06 |
21.39 |
(6.2) |
|||||||
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Average common shares outstanding – basic |
76,830,460 |
59,382,758 |
29.4 |
|||||||
|
Average common shares outstanding – diluted |
77,020,592 |
59,523,679 |
29.4 |
|||||||
|
Period end common shares outstanding |
95,672,204 |
59,395,777 |
61.1 |
|||||||
|
Period end preferred shares outstanding |
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 and the after-tax day one provision for credit losses on acquired loans. |
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NM = Not Meaningful |
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WESBANCO, INC. |
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Consolidated Selected Financial Highlights |
Page 7 |
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(unaudited, dollars in thousands, unless otherwise noted) |
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Selected ratios |
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For the Three Months Ended |
|||||||||||||||||
|
March 31, |
|||||||||||||||||
|
2025 |
2024 |
% Change |
|||||||||||||||
|
Return on average assets |
(0.22) |
% |
0.75 |
% |
(129.33) |
% |
|||||||||||
|
Return on average assets, excluding certain items (1) |
0.96 |
0.75 |
28.00 |
||||||||||||||
|
Return on average equity |
(1.45) |
5.24 |
(127.67) |
||||||||||||||
|
Return on average equity, excluding certain items (1) |
6.45 |
5.24 |
23.09 |
||||||||||||||
|
Return on average tangible equity (1) |
(1.74) |
9.85 |
(117.66) |
||||||||||||||
|
Return on average tangible equity, excluding certain items (1) |
11.61 |
9.85 |
17.87 |
||||||||||||||
|
Return on average tangible common equity (1) |
(1.89) |
10.96 |
(117.24) |
||||||||||||||
|
Return on average tangible common equity, excluding certain items (1) |
12.56 |
10.96 |
14.60 |
||||||||||||||
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Yield on earning assets (2) |
5.33 |
4.98 |
7.03 |
||||||||||||||
|
Cost of interest bearing liabilities |
2.78 |
2.98 |
(6.71) |
||||||||||||||
|
Net interest spread (2) |
2.55 |
2.00 |
27.50 |
||||||||||||||
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Net interest margin (2) |
3.35 |
2.92 |
14.73 |
||||||||||||||
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Efficiency (1) (2) |
58.62 |
66.65 |
(12.05) |
||||||||||||||
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Average loans to average deposits |
89.32 |
88.67 |
0.73 |
||||||||||||||
|
Annualized net loan charge-offs/average loans |
0.08 |
0.20 |
(60.00) |
||||||||||||||
|
Effective income tax rate |
(6.96) |
17.74 |
(139.23) |
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For the Three Months Ended |
|||||||||||||||||
|
Mar. 31, |
Dec. 31, |
Sept. 30, |
June 30, |
Mar. 31, |
|||||||||||||
|
2025 |
2024 |
2024 |
2024 |
2024 |
|||||||||||||
|
Return on average assets |
(0.22) |
% |
1.01 |
% |
0.76 |
% |
0.59 |
% |
0.75 |
% |
|||||||
|
Return on average assets, excluding certain items (1) |
0.96 |
1.02 |
0.79 |
0.66 |
0.75 |
||||||||||||
|
Return on average equity |
(1.45) |
6.68 |
5.09 |
4.17 |
5.24 |
||||||||||||
|
Return on average equity, excluding certain items (1) |
6.45 |
6.75 |
5.32 |
4.65 |
5.24 |
||||||||||||
|
Return on average tangible equity (1) |
(1.74) |
11.49 |
9.07 |
7.93 |
9.85 |
||||||||||||
|
Return on average tangible equity, excluding certain items (1) |
11.61 |
11.61 |
9.46 |
8.78 |
9.85 |
||||||||||||
|
Return on average tangible common equity (1) |
(1.89) |
12.56 |
9.97 |
8.83 |
10.96 |
||||||||||||
|
Return on average tangible common equity, excluding certain items (1) |
12.56 |
12.69 |
10.40 |
9.77 |
10.96 |
||||||||||||
|
Yield on earning assets (2) |
5.33 |
5.10 |
5.19 |
5.11 |
4.98 |
||||||||||||
|
Cost of interest bearing liabilities |
2.78 |
2.96 |
3.21 |
3.12 |
2.98 |
||||||||||||
|
Net interest spread (2) |
2.55 |
2.14 |
1.98 |
1.99 |
2.00 |
||||||||||||
|
Net interest margin (2) |
3.35 |
3.03 |
2.95 |
2.95 |
2.92 |
||||||||||||
|
Efficiency (1) (2) |
58.62 |
61.23 |
65.29 |
66.11 |
66.65 |
||||||||||||
|
Average loans to average deposits |
89.32 |
89.24 |
90.58 |
89.40 |
88.67 |
||||||||||||
|
Annualized net loan charge-offs and recoveries /average loans |
0.08 |
0.13 |
0.05 |
0.07 |
0.20 |
||||||||||||
|
Effective income tax rate |
(6.96) |
19.87 |
16.75 |
17.42 |
17.74 |
||||||||||||
|
Trust and Investment Services assets under management (3) |
$ 6,951 |
$ 5,968 |
$ 6,061 |
$ 5,633 |
$ 5,601 |
||||||||||||
|
Broker-dealer securities account values (including annuities) (3) |
$ 2,359 |
$ 1,852 |
$ 1,853 |
$ 1,780 |
$ 1,751 |
||||||||||||
|
(1) Certain items excluded from the calculation can consist of after-tax restructuring and merger-related expenses and the after-tax day one provision for credit losses on acquired |
|||||||||||||||||
|
loans. See non-GAAP financial measures for additional information relating to the calculation of this item. |
|||||||||||||||||
|
(2) The yield on earning assets, net interest margin, net interest spread and efficiency ratios are presented on a fully |
|||||||||||||||||
|
taxable-equivalent (FTE) and annualized basis. The FTE basis adjusts for the tax benefit of income on certain tax-exempt |
|||||||||||||||||
|
loans and investments. WesBanco believes this measure to be the preferred industry measurement of net interest income and |
|||||||||||||||||
|
provides a relevant comparison between taxable and non-taxable amounts. |
|||||||||||||||||
|
(3) Represents market value at period end, in millions. |
|||||||||||||||||
|
WESBANCO, INC. |
|||||||||||
|
Consolidated Selected Financial Highlights |
Page 8 |
||||||||||
|
(unaudited, dollars in thousands, except shares) |
% Change |
||||||||||
|
Balance sheet |
March 31, |
December 31, |
March 31, 2025 |
||||||||
|
Assets |
2025 |
2024 |
% Change |
2024 |
to Dec. 31, 2024 |
||||||
|
Cash and due from banks |
$ 245,897 |
$ 138,940 |
77.0 |
$ 142,271 |
72.8 |
||||||
|
Due from banks – interest bearing |
845,818 |
370,729 |
128.1 |
425,866 |
98.6 |
||||||
|
Securities: |
|||||||||||
|
Equity securities, at fair value |
28,217 |
13,074 |
115.8 |
13,427 |
110.2 |
||||||
|
Available-for-sale debt securities, at fair value |
3,149,043 |
2,119,272 |
48.6 |
2,246,072 |
40.2 |
||||||
|
Held-to-maturity debt securities (fair values of $1,002,796, $1,052,444 |
|||||||||||
|
and $1,006,817, respectively) |
1,143,376 |
1,190,010 |
(3.9) |
1,152,906 |
(0.8) |
||||||
|
Allowance for credit losses, held-to-maturity debt securities |
(137) |
(183) |
25.1 |
(146) |
6.2 |
||||||
|
Net held-to-maturity debt securities |
1,143,239 |
1,189,827 |
(3.9) |
1,152,760 |
(0.8) |
||||||
|
Total securities |
4,320,499 |
3,322,173 |
30.1 |
3,412,259 |
26.6 |
||||||
|
Loans held for sale |
243,281 |
12,472 |
NM |
18,695 |
NM |
||||||
|
Portfolio loans: |
|||||||||||
|
Commercial real estate |
10,501,846 |
6,754,933 |
55.5 |
7,326,681 |
43.3 |
||||||
|
Commercial and industrial |
2,781,728 |
1,683,172 |
65.3 |
1,787,277 |
55.6 |
||||||
|
Residential real estate |
3,930,667 |
2,469,357 |
59.2 |
2,520,086 |
56.0 |
||||||
|
Home equity |
1,020,929 |
740,973 |
37.8 |
821,110 |
24.3 |
||||||
|
Consumer |
438,578 |
224,732 |
95.2 |
201,275 |
117.9 |
||||||
|
Total portfolio loans, net of unearned income |
18,673,748 |
11,873,167 |
57.3 |
12,656,429 |
47.5 |
||||||
|
Allowance for credit losses – loans |
(233,617) |
(129,190) |
(80.8) |
(138,766) |
(68.4) |
||||||
|
Net portfolio loans |
18,440,131 |
11,743,977 |
57.0 |
12,517,663 |
47.3 |
||||||
|
Premises and equipment, net |
281,493 |
232,630 |
21.0 |
219,076 |
28.5 |
||||||
|
Accrued interest receivable |
108,778 |
78,564 |
38.5 |
78,324 |
38.9 |
||||||
|
Goodwill and other intangible assets, net |
1,754,703 |
1,130,175 |
55.3 |
1,124,016 |
56.1 |
||||||
|
Bank-owned life insurance |
548,601 |
357,099 |
53.6 |
360,738 |
52.1 |
||||||
|
Other assets |
623,182 |
385,976 |
61.5 |
385,390 |
61.7 |
||||||
|
Total Assets |
$ 27,412,383 |
$ 17,772,735 |
54.2 |
$ 18,684,298 |
46.7 |
||||||
|
Liabilities |
|||||||||||
|
Deposits: |
|||||||||||
|
Non-interest bearing demand |
$ 5,318,619 |
$ 3,938,610 |
35.0 |
$ 3,842,758 |
38.4 |
||||||
|
Interest bearing demand |
5,000,881 |
3,529,691 |
41.7 |
3,771,314 |
32.6 |
||||||
|
Money market |
4,875,384 |
2,189,769 |
122.6 |
2,429,977 |
100.6 |
||||||
|
Savings deposits |
3,068,618 |
2,499,466 |
22.8 |
2,362,736 |
29.9 |
||||||
|
Certificates of deposit |
3,028,893 |
1,339,237 |
126.2 |
1,726,932 |
75.4 |
||||||
|
Total deposits |
21,292,395 |
13,496,773 |
57.8 |
14,133,717 |
50.6 |
||||||
|
Federal Home Loan Bank borrowings |
1,476,511 |
1,100,000 |
34.2 |
1,000,000 |
47.7 |
||||||
|
Other short-term borrowings |
147,804 |
72,935 |
102.7 |
192,073 |
(23.0) |
||||||
|
Subordinated debt and junior subordinated debt |
360,156 |
279,136 |
29.0 |
279,308 |
28.9 |
||||||
|
Total borrowings |
1,984,471 |
1,452,071 |
36.7 |
1,471,381 |
34.9 |
||||||
|
Accrued interest payable |
26,570 |
15,929 |
66.8 |
14,228 |
86.7 |
||||||
|
Other liabilities |
327,368 |
269,600 |
21.4 |
274,691 |
19.2 |
||||||
|
Total Liabilities |
23,630,804 |
15,234,373 |
55.1 |
15,894,017 |
48.7 |
||||||
|
Shareholders’ Equity |
|||||||||||
|
Preferred stock, no par value; 1,000,000 shares authorized; 150,000 shares |
|||||||||||
|
6.75% non-cumulative perpetual preferred stock, Series A, liquidation |
|||||||||||
|
preference $150.0 million, issued and outstanding, respectively |
144,484 |
144,484 |
– |
144,484 |
– |
||||||
|
Common stock, $2.0833 par value; 200,000,000, 100,000,000 and 200,000,000 |
|||||||||||
|
shares authorized; 95,672,204, 68,081,306 and 75,354,034 shares issued; |
|||||||||||
|
95,672,204, 59,395,777 and 66,919,805 shares outstanding, respectively |
199,313 |
141,834 |
40.5 |
156,985 |
27.0 |
||||||
|
Capital surplus |
2,485,223 |
1,636,964 |
51.8 |
1,809,679 |
37.3 |
||||||
|
Retained earnings |
1,145,396 |
1,154,307 |
(0.8) |
1,192,091 |
(3.9) |
||||||
|
Treasury stock (0, 8,685,529 and 8,434,229 shares – at cost, respectively) |
– |
(302,264) |
(100.0) |
(292,244) |
(100.0) |
||||||
|
Accumulated other comprehensive loss |
(190,710) |
(234,922) |
18.8 |
(218,632) |
12.8 |
||||||
|
Deferred benefits for directors |
(2,127) |
(2,041) |
(4.2) |
(2,082) |
(2.2) |
||||||
|
Total Shareholders’ Equity |
3,781,579 |
2,538,362 |
49.0 |
2,790,281 |
35.5 |
||||||
|
Total Liabilities and Shareholders’ Equity |
$ 27,412,383 |
$ 17,772,735 |
54.2 |
$ 18,684,298 |
46.7 |
||||||
|
WESBANCO, INC. |
|||||||||||||
|
Consolidated Selected Financial Highlights |
Page 9 |
||||||||||||
|
(unaudited, dollars in thousands) |
|||||||||||||
|
Average balance sheet and |
|||||||||||||
|
net interest margin analysis |
For the Three Months Ended March 31, |
||||||||||||
|
2025 |
2024 |
||||||||||||
|
Average |
Average |
Average |
Average |
||||||||||
|
Assets |
Balance |
Rate |
Balance |
Rate |
|||||||||
|
Due from banks – interest bearing |
$ 602,708 |
4.73 |
% |
$ 375,268 |
5.70 |
% |
|||||||
|
Loans, net of unearned income (1) |
14,720,749 |
6.02 |
11,756,875 |
5.71 |
|||||||||
|
Securities: (2) |
|||||||||||||
|
Taxable |
3,237,372 |
2.79 |
2,928,867 |
2.39 |
|||||||||
|
Tax-exempt (3) |
733,105 |
3.17 |
759,797 |
3.07 |
|||||||||
|
Total securities |
3,970,477 |
2.86 |
3,688,664 |
2.53 |
|||||||||
|
Other earning assets |
61,393 |
6.69 |
60,920 |
6.92 |
|||||||||
|
Total earning assets (3) |
19,355,327 |
5.33 |
% |
15,881,727 |
4.98 |
% |
|||||||
|
Other assets |
2,303,025 |
1,822,538 |
|||||||||||
|
Total Assets |
$ 21,658,352 |
$ 17,704,265 |
|||||||||||
|
Liabilities and Shareholders’ Equity |
|||||||||||||
|
Interest bearing demand deposits |
$ 4,166,005 |
2.86 |
% |
$ 3,501,049 |
2.94 |
% |
|||||||
|
Money market accounts |
3,219,335 |
2.66 |
2,087,036 |
3.11 |
|||||||||
|
Savings deposits |
2,605,145 |
1.15 |
2,480,710 |
1.24 |
|||||||||
|
Certificates of deposit |
2,185,662 |
3.44 |
1,291,111 |
3.19 |
|||||||||
|
Total interest bearing deposits |
12,176,147 |
2.55 |
9,359,906 |
2.56 |
|||||||||
|
Federal Home Loan Bank borrowings |
1,168,981 |
4.52 |
1,243,407 |
5.50 |
|||||||||
|
Repurchase agreements |
162,912 |
2.79 |
92,565 |
2.93 |
|||||||||
|
Subordinated debt and junior subordinated debt |
305,309 |
5.48 |
279,103 |
5.87 |
|||||||||
|
Total interest bearing liabilities (4) |
13,813,349 |
2.78 |
% |
10,974,981 |
2.98 |
% |
|||||||
|
Non-interest bearing demand deposits |
4,303,915 |
3,898,990 |
|||||||||||
|
Other liabilities |
322,449 |
284,453 |
|||||||||||
|
Shareholders’ equity |
3,218,639 |
2,545,841 |
|||||||||||
|
Total Liabilities and Shareholders’ Equity |
$ 21,658,352 |
$ 17,704,265 |
|||||||||||
|
Taxable equivalent net interest spread |
2.55 |
% |
2.00 |
% |
|||||||||
|
Taxable equivalent net interest margin |
3.35 |
% |
2.92 |
% |
|||||||||
|
(1) Gross of the allowance for credit losses, net of unearned income and includes non-accrual loans and loans held for sale. Loan fees included in interest income on loans were $1.6 million and $0.3 million for the three months ended March 31, 2025 and 2024, respectively. Additionally, loan accretion included in interest income on loans acquired from prior acquisitions was $6.9 million and $0.8 million for the three months ended March 31, 2025 and 2024, 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 $2.3 million and $0.1 million for the three months ended March 31, 2025 and 2024, respectively. |
|||||||||||||
|
WESBANCO, INC. |
||||||||||||||
|
Consolidated Selected Financial Highlights |
Page 10 |
|||||||||||||
|
(unaudited, dollars in thousands, except shares and per share amounts) |
||||||||||||||
|
Quarter Ended |
||||||||||||||
|
Statement of Income |
Mar. 31, |
Dec. 31, |
Sept. 30, |
June 30, |
Mar. 31, |
|||||||||
|
Interest and dividend income |
2025 |
2024 |
2024 |
2024 |
2024 |
|||||||||
|
Loans, including fees |
$ 218,409 |
$ 183,251 |
$ 184,215 |
$ 175,361 |
$ 166,974 |
|||||||||
|
Interest and dividends on securities: |
||||||||||||||
|
Taxable |
22,247 |
18,575 |
17,651 |
16,929 |
17,404 |
|||||||||
|
Tax-exempt |
4,529 |
4,449 |
4,498 |
4,556 |
4,586 |
|||||||||
|
Total interest and dividends on securities |
26,776 |
23,024 |
22,149 |
21,485 |
21,990 |
|||||||||
|
Other interest income |
8,047 |
7,310 |
7,365 |
6,147 |
6,369 |
|||||||||
|
Total interest and dividend income |
253,232 |
213,585 |
213,729 |
202,993 |
195,333 |
|||||||||
|
Interest expense |
||||||||||||||
|
Interest bearing demand deposits |
29,377 |
27,044 |
28,139 |
26,925 |
25,590 |
|||||||||
|
Money market deposits |
21,134 |
18,734 |
19,609 |
18,443 |
16,114 |
|||||||||
|
Savings deposits |
7,359 |
7,271 |
8,246 |
7,883 |
7,667 |
|||||||||
|
Certificates of deposit |
18,558 |
16,723 |
14,284 |
11,982 |
10,247 |
|||||||||
|
Total interest expense on deposits |
76,428 |
69,772 |
70,278 |
65,233 |
59,618 |
|||||||||
|
Federal Home Loan Bank borrowings |
13,034 |
12,114 |
17,147 |
16,227 |
17,000 |
|||||||||
|
Other short-term borrowings |
1,122 |
1,291 |
1,092 |
896 |
674 |
|||||||||
|
Subordinated debt and junior subordinated debt |
4,129 |
3,902 |
4,070 |
4,044 |
4,075 |
|||||||||
|
Total interest expense |
94,713 |
87,079 |
92,587 |
86,400 |
81,367 |
|||||||||
|
Net interest income |
158,519 |
126,506 |
121,142 |
116,593 |
113,966 |
|||||||||
|
Provision for credit losses |
68,883 |
(147) |
4,798 |
10,541 |
4,014 |
|||||||||
|
Net interest income after provision for credit losses |
89,636 |
126,653 |
116,344 |
106,052 |
109,952 |
|||||||||
|
Non-interest income |
||||||||||||||
|
Trust fees |
8,697 |
7,775 |
7,517 |
7,303 |
8,082 |
|||||||||
|
Service charges on deposits |
8,587 |
8,138 |
7,945 |
7,111 |
6,784 |
|||||||||
|
Digital banking income |
5,404 |
5,125 |
5,084 |
5,040 |
4,704 |
|||||||||
|
Net swap fee and valuation income/ (loss) |
961 |
3,230 |
(627) |
1,776 |
1,563 |
|||||||||
|
Net securities brokerage revenue |
2,701 |
2,430 |
2,659 |
2,601 |
2,548 |
|||||||||
|
Bank-owned life insurance |
3,428 |
2,512 |
2,173 |
2,791 |
2,067 |
|||||||||
|
Mortgage banking income |
1,140 |
1,229 |
1,280 |
1,069 |
693 |
|||||||||
|
Net securities (losses) / gains |
(318) |
61 |
675 |
135 |
537 |
|||||||||
|
Net (losses) / gains on other real estate owned and other assets |
(40) |
193 |
(239) |
34 |
154 |
|||||||||
|
Other income |
4,105 |
5,695 |
3,145 |
3,495 |
3,497 |
|||||||||
|
Total non-interest income |
34,665 |
36,388 |
29,612 |
31,355 |
30,629 |
|||||||||
|
Non-interest expense |
||||||||||||||
|
Salaries and wages |
48,577 |
45,638 |
44,890 |
43,991 |
42,997 |
|||||||||
|
Employee benefits |
12,970 |
11,856 |
11,522 |
10,579 |
12,184 |
|||||||||
|
Net occupancy |
7,778 |
5,999 |
6,226 |
6,309 |
6,623 |
|||||||||
|
Equipment and software |
13,050 |
10,681 |
10,157 |
10,457 |
10,008 |
|||||||||
|
Marketing |
2,382 |
2,531 |
2,977 |
2,371 |
1,885 |
|||||||||
|
FDIC insurance |
4,187 |
3,640 |
3,604 |
3,523 |
3,448 |
|||||||||
|
Amortization of intangible assets |
4,223 |
2,034 |
2,053 |
2,072 |
2,092 |
|||||||||
|
Restructuring and merger-related expense |
20,010 |
646 |
1,977 |
3,777 |
– |
|||||||||
|
Other operating expenses |
20,789 |
18,079 |
17,777 |
19,313 |
17,954 |
|||||||||
|
Total non-interest expense |
133,966 |
101,104 |
101,183 |
102,392 |
97,191 |
|||||||||
|
(Loss) / Income before provision for income taxes |
(9,665) |
61,937 |
44,773 |
35,015 |
43,390 |
|||||||||
|
(Benefit) provision for income taxes |
(673) |
12,308 |
7,501 |
6,099 |
7,697 |
|||||||||
|
Net (Loss) / Income |
(8,992) |
49,629 |
37,272 |
28,916 |
35,693 |
|||||||||
|
Preferred stock dividends |
2,531 |
2,531 |
2,531 |
2,531 |
2,531 |
|||||||||
|
Net (loss) / income available to common shareholders |
$ (11,523) |
$ 47,098 |
$ 34,741 |
$ 26,385 |
$ 33,162 |
|||||||||
|
Taxable equivalent net interest income |
$ 159,723 |
$ 127,689 |
$ 122,338 |
$ 117,804 |
$ 115,185 |
|||||||||
|
Per common share data |
||||||||||||||
|
Net (loss) / income per common share – basic |
$ (0.15) |
$ 0.70 |
$ 0.54 |
$ 0.44 |
$ 0.56 |
|||||||||
|
Net (loss) / income per common share – diluted |
(0.15) |
0.70 |
0.54 |
0.44 |
0.56 |
|||||||||
|
Adjusted net income per common share – diluted, excluding certain items (1)(2) |
0.66 |
0.71 |
0.56 |
0.49 |
0.56 |
|||||||||
|
Dividends declared |
0.37 |
0.37 |
0.36 |
0.36 |
0.36 |
|||||||||
|
Book value (period end) |
38.02 |
39.54 |
39.73 |
40.28 |
40.30 |
|||||||||
|
Tangible book value (period end) (1) |
20.06 |
22.83 |
22.99 |
21.45 |
21.39 |
|||||||||
|
Average common shares outstanding – basic |
76,830,460 |
66,895,834 |
64,488,962 |
59,521,872 |
59,382,758 |
|||||||||
|
Average common shares outstanding – diluted |
77,020,592 |
66,992,009 |
64,634,208 |
59,656,429 |
59,523,679 |
|||||||||
|
Period end common shares outstanding |
95,672,204 |
66,919,805 |
66,871,479 |
59,579,310 |
59,395,777 |
|||||||||
|
Period end preferred shares outstanding |
150,000 |
150,000 |
150,000 |
150,000 |
150,000 |
|||||||||
|
Full time equivalent employees |
3,205 |
2,262 |
2,277 |
2,370 |
2,331 |
|||||||||
|
(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 and the after-tax day one provision for credit losses on acquired loans. |
||||||||||||||
|
WESBANCO, INC. |
|||||||||||||
|
Consolidated Selected Financial Highlights |
Page 11 |
||||||||||||
|
(unaudited, dollars in thousands) |
|||||||||||||
|
Quarter Ended |
|||||||||||||
|
Mar. 31, |
Dec. 31, |
Sept. 30, |
June 30, |
Mar. 31, |
|||||||||
|
Asset quality data |
2025 |
2024 |
2024 |
2024 |
2024 |
||||||||
|
Non-performing assets: |
|||||||||||||
|
Total non-performing loans |
$ 81,489 |
$ 39,752 |
$ 30,421 |
$ 35,468 |
$ 32,919 |
||||||||
|
Other real estate and repossessed assets |
1,854 |
852 |
906 |
1,328 |
1,474 |
||||||||
|
Total non-performing assets |
$ 83,343 |
$ 40,604 |
$ 31,327 |
$ 36,796 |
$ 34,393 |
||||||||
|
Past due loans (1): |
|||||||||||||
|
Loans past due 30-89 days |
$ 69,755 |
$ 45,926 |
$ 33,762 |
$ 20,237 |
$ 18,515 |
||||||||
|
Loans past due 90 days or more |
10,734 |
13,553 |
20,427 |
9,171 |
5,408 |
||||||||
|
Total past due loans |
$ 80,489 |
$ 59,479 |
$ 54,189 |
$ 29,408 |
$ 23,923 |
||||||||
|
Criticized and classified loans (2): |
|||||||||||||
|
Criticized loans |
$ 470,619 |
$ 242,000 |
$ 200,540 |
$ 179,621 |
$ 171,536 |
||||||||
|
Classified loans |
149,452 |
112,669 |
93,185 |
83,744 |
101,898 |
||||||||
|
Total criticized and classified loans |
$ 620,071 |
$ 354,669 |
$ 293,725 |
$ 263,365 |
$ 273,434 |
||||||||
|
Loans past due 30-89 days / total portfolio loans |
0.37 |
% |
0.36 |
% |
0.27 |
% |
0.17 |
% |
0.16 |
% |
|||
|
Loans past due 90 days or more / total portfolio loans |
0.06 |
0.11 |
0.16 |
0.07 |
0.05 |
||||||||
|
Non-performing loans / total portfolio loans |
0.44 |
0.31 |
0.24 |
0.29 |
0.28 |
||||||||
|
Non-performing assets / total portfolio loans, other |
|||||||||||||
|
real estate and repossessed assets |
0.45 |
0.32 |
0.25 |
0.30 |
0.29 |
||||||||
|
Non-performing assets / total assets |
0.30 |
0.22 |
0.17 |
0.20 |
0.19 |
||||||||
|
Criticized and classified loans / total portfolio loans |
3.32 |
2.80 |
2.36 |
2.15 |
2.30 |
||||||||
|
Allowance for credit losses |
|||||||||||||
|
Allowance for credit losses – loans |
$ 233,617 |
$ 138,766 |
$ 140,872 |
$ 136,509 |
$ 129,190 |
||||||||
|
Allowance for credit losses – loan commitments |
6,459 |
6,120 |
8,225 |
9,194 |
8,175 |
||||||||
|
Provision for credit losses |
68,883 |
(147) |
4,798 |
10,541 |
4,014 |
||||||||
|
Net loan and deposit account overdraft charge-offs and recoveries |
2,771 |
4,066 |
1,420 |
2,221 |
5,935 |
||||||||
|
Annualized net loan charge-offs and recoveries / average loans |
0.08 |
% |
0.13 |
% |
0.05 |
% |
0.07 |
% |
0.20 |
% |
|||
|
Allowance for credit losses – loans / total portfolio loans |
1.25 |
% |
1.10 |
% |
1.13 |
% |
1.11 |
% |
1.09 |
% |
|||
|
Allowance for credit losses – loans / non-performing loans |
2.87 |
x |
3.49 |
x |
4.63 |
x |
3.85 |
x |
3.92 |
x |
|||
|
Allowance for credit losses – loans / non-performing loans and |
|||||||||||||
|
loans past due |
1.44 |
x |
1.40 |
x |
1.66 |
x |
2.10 |
x |
2.27 |
x |
|||
|
Mar. 31, |
Dec. 31, |
Sept. 30, |
June 30, |
Mar. 31, |
|||||||||
|
2025 |
2024 |
2024 |
2024 |
2024 |
|||||||||
|
Capital ratios |
|||||||||||||
|
Tier I leverage capital |
11.01 |
% |
10.68 |
% |
10.69 |
% |
9.72 |
% |
9.79 |
% |
|||
|
Tier I risk-based capital |
10.69 |
13.06 |
12.89 |
11.58 |
11.87 |
||||||||
|
Total risk-based capital |
13.59 |
15.88 |
15.74 |
14.45 |
14.76 |
||||||||
|
Common equity tier 1 capital ratio (CET 1) |
9.99 |
12.07 |
11.89 |
10.58 |
10.84 |
||||||||
|
Average shareholders’ equity to average assets |
14.86 |
15.09 |
14.84 |
14.21 |
14.38 |
||||||||
|
Tangible equity to tangible assets (3) |
8.03 |
9.52 |
9.67 |
8.37 |
8.50 |
||||||||
|
Tangible common equity to tangible assets (3) |
7.47 |
8.70 |
8.84 |
7.52 |
7.63 |
||||||||
|
(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 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 |
|||||||||||||
|
Mar. 31, |
Dec. 31, |
Sept. 30, |
June 30, |
Mar. 31, |
|||||||||
|
(unaudited, dollars in thousands, except shares and per share amounts) |
2025 |
2024 |
2024 |
2024 |
2024 |
||||||||
|
Return on average assets, excluding certain items: |
|||||||||||||
|
Net (loss) / income available to common shareholders |
$ (11,523) |
$ 47,098 |
$ 34,741 |
$ 26,385 |
$ 33,162 |
||||||||
|
Plus: after-tax restructuring and merger-related expenses (1) |
15,808 |
510 |
1,562 |
2,984 |
– |
||||||||
|
Plus: after-tax day one provision for credit losses on acquired loans (1) |
46,926 |
– |
– |
– |
– |
||||||||
|
Net income available to common shareholders, excluding certain items |
51,211 |
47,608 |
36,303 |
29,369 |
33,162 |
||||||||
|
Average total assets |
$ 21,658,352 |
$ 18,593,265 |
$ 18,295,583 |
$ 17,890,314 |
$ 17,704,265 |
||||||||
|
Return on average assets, excluding certain items (annualized) (2) |
0.96 % |
1.02 % |
0.79 % |
0.66 % |
0.75 % |
||||||||
|
Return on average equity, excluding certain items: |
|||||||||||||
|
Net (loss) / income available to common shareholders |
$ (11,523) |
$ 47,098 |
$ 34,741 |
$ 26,385 |
$ 33,162 |
||||||||
|
Plus: after-tax restructuring and merger-related expenses (1) |
15,808 |
510 |
1,562 |
2,984 |
– |
||||||||
|
Plus: after-tax day one provision for credit losses on acquired loans (1) |
46,926 |
– |
– |
– |
– |
||||||||
|
Net income available to common shareholders excluding certain items |
51,211 |
47,608 |
36,303 |
29,369 |
33,162 |
||||||||
|
Average total shareholders’ equity |
$ 3,218,639 |
$ 2,806,079 |
$ 2,715,461 |
$ 2,542,948 |
$ 2,545,841 |
||||||||
|
Return on average equity, excluding certain items (annualized) (2) |
6.45 % |
6.75 % |
5.32 % |
4.65 % |
5.24 % |
||||||||
|
Return on average tangible equity: |
|||||||||||||
|
Net (loss) / income available to common shareholders |
$ (11,523) |
$ 47,098 |
$ 34,741 |
$ 26,385 |
$ 33,162 |
||||||||
|
Plus: amortization of intangibles (1) |
3,336 |
1,607 |
1,622 |
1,637 |
1,653 |
||||||||
|
Net (loss) / income available to common shareholders before amortization of intangibles |
(8,187) |
48,705 |
36,363 |
28,022 |
34,815 |
||||||||
|
Average total shareholders’ equity |
3,218,639 |
2,806,079 |
2,715,461 |
2,542,948 |
2,545,841 |
||||||||
|
Less: average goodwill and other intangibles, net of def. tax liability |
(1,312,855) |
(1,119,060) |
(1,120,662) |
(1,122,264) |
(1,123,938) |
||||||||
|
Average tangible equity |
$ 1,905,784 |
$ 1,687,019 |
$ 1,594,799 |
$ 1,420,684 |
$ 1,421,903 |
||||||||
|
Return on average tangible equity (annualized) (2) |
-1.74 % |
11.49 % |
9.07 % |
7.93 % |
9.85 % |
||||||||
|
Average tangible common equity |
$ 1,761,300 |
$ 1,542,535 |
$ 1,450,315 |
$ 1,276,200 |
$ 1,277,419 |
||||||||
|
Return on average tangible common equity (annualized) (2) |
-1.89 % |
12.56 % |
9.97 % |
8.83 % |
10.96 % |
||||||||
|
Return on average tangible equity, excluding certain items: |
|||||||||||||
|
Net (loss) / income available to common shareholders |
$ (11,523) |
$ 47,098 |
$ 34,741 |
$ 26,385 |
$ 33,162 |
||||||||
|
Plus: after-tax restructuring and merger-related expenses (1) |
15,808 |
510 |
1,562 |
2,984 |
– |
||||||||
|
Plus: amortization of intangibles (1) |
3,336 |
1,607 |
1,622 |
1,637 |
1,653 |
||||||||
|
Plus: after-tax day one provision for credit losses on acquired loans (1) |
46,926 |
– |
– |
– |
– |
||||||||
|
Net income available to common shareholders before amortization of intangibles |
|||||||||||||
|
and excluding certain items |
54,547 |
49,215 |
37,925 |
31,006 |
34,815 |
||||||||
|
Average total shareholders’ equity |
3,218,639 |
2,806,079 |
2,715,461 |
2,542,948 |
2,545,841 |
||||||||
|
Less: average goodwill and other intangibles, net of def. tax liability |
(1,312,855) |
(1,119,060) |
(1,120,662) |
(1,122,264) |
(1,123,938) |
||||||||
|
Average tangible equity |
$ 1,905,784 |
$ 1,687,019 |
$ 1,594,799 |
$ 1,420,684 |
$ 1,421,903 |
||||||||
|
Return on average tangible equity, excluding certain items (annualized) (2) |
11.61 % |
11.61 % |
9.46 % |
8.78 % |
9.85 % |
||||||||
|
Average tangible common equity |
$ 1,761,300 |
$ 1,542,535 |
$ 1,450,315 |
$ 1,276,200 |
$ 1,277,419 |
||||||||
|
Return on average tangible common equity, excluding certain items (annualized) (2) |
12.56 % |
12.69 % |
10.40 % |
9.77 % |
10.96 % |
||||||||
|
Efficiency ratio: |
|||||||||||||
|
Non-interest expense |
$ 133,966 |
$ 101,104 |
$ 101,183 |
$ 102,392 |
$ 97,191 |
||||||||
|
Less: restructuring and merger-related expense |
(20,010) |
(646) |
(1,977) |
(3,777) |
– |
||||||||
|
Non-interest expense excluding restructuring and merger-related expense |
113,956 |
100,458 |
99,206 |
98,615 |
97,191 |
||||||||
|
Net interest income on a fully taxable equivalent basis |
159,723 |
127,689 |
122,338 |
117,804 |
115,185 |
||||||||
|
Non-interest income |
34,665 |
36,388 |
29,612 |
31,355 |
0 |
30,629 |
|||||||
|
Net interest income on a fully taxable equivalent basis plus non-interest income |
$ 194,388 |
$ 164,077 |
$ 151,950 |
$ 149,159 |
0 |
$ 145,814 |
|||||||
|
Efficiency ratio |
58.62 % |
61.23 % |
65.29 % |
66.11 % |
66.65 % |
||||||||
|
Adjusted net income available to common shareholders, excluding certain items: |
|||||||||||||
|
Net (loss) / income available to common shareholders |
$ (11,523) |
$ 47,098 |
$ 34,741 |
$ 26,385 |
$ 33,162 |
||||||||
|
Add: After-tax restructuring and merger-related expenses (1) |
15,808 |
510 |
1,562 |
2,984 |
– |
||||||||
|
Add: after-tax day one provision for credit losses on acquired loans (1) |
46,926 |
– |
– |
– |
– |
||||||||
|
Adjusted net income available to common shareholders, excluding certain items: |
$ 51,211 |
$ 47,608 |
$ 36,303 |
$ 29,369 |
$ 33,162 |
||||||||
|
Adjusted net income per common share – diluted, excluding certain items: |
|||||||||||||
|
Net (loss) / income per common share – diluted |
$ (0.15) |
$ 0.70 |
$ 0.54 |
$ 0.44 |
$ 0.56 |
||||||||
|
Add: After-tax restructuring and merger-related expenses per common share – diluted (1) |
0.21 |
0.01 |
0.02 |
0.05 |
– |
||||||||
|
Add: after-tax day one provision for credit losses on acquired loans (1) |
0.60 |
– |
– |
– |
– |
||||||||
|
Adjusted net income per common share – diluted, excluding certain items: |
$ 0.66 |
$ 0.71 |
$ 0.56 |
$ 0.49 |
$ 0.56 |
||||||||
|
Period End |
|||||||||||||
|
Mar. 31, |
Dec. 31, |
Sept. 30, |
June 30, |
Mar. 31, |
|||||||||
|
2025 |
2024 |
2024 |
2024 |
2024 |
|||||||||
|
Tangible book value per share: |
|||||||||||||
|
Total shareholders’ equity |
$ 3,781,579 |
$ 2,790,281 |
$ 2,801,585 |
$ 2,544,279 |
$ 2,538,362 |
||||||||
|
Less: goodwill and other intangible assets, net of def. tax liability |
(1,718,048) |
(1,118,293) |
(1,119,899) |
(1,121,521) |
(1,123,158) |
||||||||
|
Less: preferred shareholder’s equity |
(144,484) |
(144,484) |
(144,484) |
(144,484) |
(144,484) |
||||||||
|
Tangible common equity |
1,919,047 |
1,527,504 |
1,537,202 |
1,278,274 |
1,270,720 |
||||||||
|
Common shares outstanding |
95,672,204 |
66,919,805 |
66,871,479 |
59,579,310 |
59,395,777 |
||||||||
|
Tangible book value per share |
$ 20.06 |
$ 22.83 |
$ 22.99 |
$ 21.45 |
$ 21.39 |
||||||||
|
Tangible common equity to tangible assets: |
|||||||||||||
|
Total shareholders’ equity |
$ 3,781,579 |
$ 2,790,281 |
$ 2,801,585 |
$ 2,544,279 |
$ 2,538,362 |
||||||||
|
Less: goodwill and other intangible assets, net of def. tax liability |
(1,718,048) |
(1,118,293) |
(1,119,899) |
(1,121,521) |
(1,123,158) |
||||||||
|
Tangible equity |
2,063,531 |
1,671,988 |
1,681,686 |
1,422,758 |
1,415,204 |
||||||||
|
Less: preferred shareholder’s equity |
(144,484) |
(144,484) |
(144,484) |
(144,484) |
(144,484) |
||||||||
|
Tangible common equity |
1,919,047 |
1,527,504 |
1,537,202 |
1,278,274 |
1,270,720 |
||||||||
|
Total assets |
27,412,383 |
18,684,298 |
18,514,169 |
18,128,375 |
17,772,735 |
||||||||
|
Less: goodwill and other intangible assets, net of def. tax liability |
(1,718,048) |
(1,118,293) |
(1,119,899) |
(1,121,521) |
(1,123,158) |
||||||||
|
Tangible assets |
$ 25,694,335 |
$ 17,566,005 |
$ 17,394,270 |
$ 17,006,854 |
$ 16,649,577 |
||||||||
|
Tangible equity to tangible assets |
8.03 % |
9.52 % |
9.67 % |
8.37 % |
8.50 % |
||||||||
|
Tangible common equity to tangible assets |
7.47 % |
8.70 % |
8.84 % |
7.52 % |
7.63 % |
||||||||
|
(1) Tax effected at 21% for all periods presented. |
|||||||||||||
|
(2) The ratios are annualized by utilizing actual numbers of days in the quarter versus the year. |
|||||||||||||
|
WESBANCO, INC. |
|||||||||||||
|
Additional Non-GAAP Financial Measures |
Page 13 |
||||||||||||
|
The following non-GAAP financial measures used by WesBanco provide information useful to investors in understanding WesBanco’s operating performance and trends, and facilitate comparisons |
|||||||||||||
|
Three Months Ended |
|||||||||||||
|
Mar. 31, |
Dec. 31, |
Sept. 30, |
June 30, |
Mar. 31, |
|||||||||
|
(unaudited, dollars in thousands, except shares and per share amounts) |
2025 |
2024 |
2024 |
2024 |
2024 |
||||||||
|
Pre-tax, pre-provision income: |
|||||||||||||
|
(Loss) / Income before (benefit) / provision for income taxes |
$ (9,665) |
$ 61,937 |
$ 44,773 |
$ 35,015 |
$ 43,390 |
||||||||
|
Add: provision for credit losses |
68,883 |
(147) |
4,798 |
10,541 |
4,014 |
||||||||
|
Pre-tax, pre-provision income |
$ 59,218 |
$ 61,790 |
$ 49,571 |
$ 45,556 |
$ 47,404 |
||||||||
|
Pre-tax, pre-provision income, excluding restructuring and merger-related expenses: |
|||||||||||||
|
(Loss) / Income before (benefit) / provision for income taxes |
$ (9,665) |
$ 61,937 |
$ 44,773 |
$ 35,015 |
$ 43,390 |
||||||||
|
Add: provision for credit losses |
68,883 |
(147) |
4,798 |
10,541 |
4,014 |
||||||||
|
Add: restructuring and merger-related expenses |
20,010 |
646 |
1,977 |
3,777 |
– |
||||||||
|
Pre-tax, pre-provision income, excluding restructuring and merger-related expenses |
$ 79,228 |
$ 62,436 |
$ 51,548 |
$ 49,333 |
$ 47,404 |
||||||||
|
Pre-tax, pre-provision return on average assets, excluding restructuring and merger-related expenses: |
|||||||||||||
|
(Loss) / Income before (benefit) / provision for income taxes |
$ (9,665) |
$ 61,937 |
$ 44,773 |
$ 35,015 |
$ 43,390 |
||||||||
|
Add: provision for credit losses |
68,883 |
(147) |
4,798 |
10,541 |
4,014 |
||||||||
|
Add: restructuring and merger-related expenses |
20,010 |
646 |
1,977 |
# |
3,777 |
– |
|||||||
|
Pre-tax, pre-provision income, excluding restructuring and merger-related expenses |
79,228 |
62,436 |
51,548 |
# |
49,333 |
47,404 |
|||||||
|
Average total assets |
$ 21,658,352 |
$ 18,593,265 |
$ 18,295,583 |
$ 17,890,314 |
$ 17,704,265 |
||||||||
|
Pre-tax, pre-provision return on average assets, excluding restructuring and merger-related expenses (annualized) (2) |
1.48 % |
1.34 % |
1.12 % |
1.11 % |
1.08 % |
||||||||
|
Pre-tax, pre-provision return on average equity, excluding restructuring and merger-related expenses: |
|||||||||||||
|
(Loss) / Income before (benefit) / provision for income taxes |
$ (9,665) |
$ 61,937 |
$ 44,773 |
$ 35,015 |
$ 43,390 |
||||||||
|
Add: provision for credit losses |
68,883 |
(147) |
4,798 |
10,541 |
4,014 |
||||||||
|
Add: restructuring and merger-related expenses |
20,010 |
646 |
1,977 |
# |
3,777 |
– |
|||||||
|
Pre-tax, pre-provision income, excluding restructuring and merger-related expenses |
79,228 |
62,436 |
51,548 |
# |
49,333 |
47,404 |
|||||||
|
Average total shareholders’ equity |
$ 3,218,639 |
$ 2,806,079 |
$ 2,715,461 |
$ 2,542,948 |
$ 2,545,841 |
||||||||
|
Pre-tax, pre-provision return on average equity, excluding restructuring and merger-related expenses (annualized) (2) |
9.98 % |
8.85 % |
7.55 % |
7.80 % |
7.49 % |
||||||||
|
Pre-tax, pre-provision return on average tangible equity, excluding certain items (1): |
|||||||||||||
|
(Loss) / Income before (benefit) / provision for income taxes |
$ (9,665) |
$ 61,937 |
$ 44,773 |
$ 35,015 |
$ 43,390 |
||||||||
|
Add: provision for credit losses |
68,883 |
(147) |
4,798 |
10,541 |
4,014 |
||||||||
|
Add: amortization of intangibles |
4,223 |
2,034 |
2,053 |
2,072 |
2,092 |
||||||||
|
Add: restructuring and merger-related expenses |
20,010 |
646 |
1,977 |
# |
3,777 |
– |
|||||||
|
Pre-tax, pre-provision income before restructuring and merger-related expenses and amortization of intangibles |
83,451 |
64,470 |
53,601 |
# |
51,405 |
49,496 |
|||||||
|
Average total shareholders’ equity |
3,218,639 |
2,806,079 |
2,715,461 |
2,542,948 |
2,545,841 |
||||||||
|
Less: average goodwill and other intangibles, net of def. tax liability |
(1,312,855) |
(1,119,060) |
(1,120,662) |
(1,122,264) |
(1,123,938) |
||||||||
|
Average tangible equity |
$ 1,905,784 |
$ 1,687,019 |
$ 1,594,799 |
$ 1,420,684 |
$ 1,421,903 |
||||||||
|
Pre-tax, pre-provision return on average tangible equity, excluding certain items (annualized) (1) (2) |
17.76 % |
15.20 % |
13.37 % |
14.55 % |
14.00 % |
||||||||
|
Average tangible common equity |
$ 1,761,300 |
$ 1,542,535 |
$ 1,450,315 |
$ 1,276,200 |
$ 1,277,419 |
||||||||
|
Pre-tax, pre-provision return on average tangible common equity, excluding certain items (annualized) (1) (2) |
19.22 % |
16.63 % |
14.70 % |
16.20 % |
15.58 % |
||||||||
|
(1) Certain items excluded from the calculations consist of credit provisions, tax provisions and restructuring and merger-related expenses. |
|||||||||||||
|
(2) The ratios are annualized by utilizing actual numbers of days in the quarter versus the year. |
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SOURCE WesBanco, Inc.
