WHEELING, W.Va., Oct. 23, 2019 /PRNewswire/ — WesBanco, Inc. («WesBanco») (Nasdaq: WSBC), a diversified, multi-state bank holding company, today announced net income and related earnings per share for the three and nine months ended September 30, 2019.  Net income for the three months ended September 30, 2019 was $37.3 million, with diluted earnings per share of $0.68, compared to $32.5 million and $0.64 per diluted share, respectively, for the third quarter of 2018.  For the nine months ended September 30, 2019, net income was $122.5 million, or $2.24 per diluted share, compared to $99.2 million, or $2.11 per diluted share, for the 2018 period.  Net income excluding after-tax merger-related expenses for the three months ended September 30, 2019, decreased 5.7 % year-over-year to $38.7 million, or $0.71 per diluted share as compared to $0.81 per diluted share in the prior year quarter, a decrease of 12.3% (non-GAAP measures).  On the same basis, net income for the nine months ended September 30, 2019 increased 12.6% year-over-year to $126.3 million, or $2.31 per diluted share, down 2.9% when compared to $2.38 per diluted share in the prior year period (non-GAAP measures).

WesBanco Logo (PRNewsfoto/WesBanco, Inc.)

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

2019

2018

2019

2018

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

Net Income

Diluted
Earnings
Per Share

Net Income

Diluted
Earnings
Per Share

Net Income

Diluted
Earnings
Per Share

Net Income

Diluted
Earnings
Per Share

Net income (Non-GAAP)(1)

$      38,681

$       0.71

$      41,027

$       0.81

$    126,349

$       2.31

$    112,194

$       2.38

Less: After tax merger-related expenses

(1,334)

(0.03)

(8,541)

(0.17)

(3,852)

(0.07)

(13,010)

(0.27)

Net income (GAAP)

$      37,347

$       0.68

$      32,486

$       0.64

$    122,497

$       2.24

$      99,184

$       2.11

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

On April 5, 2018, WesBanco consummated the merger with First Sentry Bancshares, Inc. («FTSB»), a bank holding company headquartered in Huntington, WV with $0.7 billion in assets, excluding goodwill.  In addition, on August 20, 2018, WesBanco consummated the merger with Farmers Capital Bank Corporation («FFKT»), a bank holding company headquartered in Frankfort, KY with approximately $1.6 billion in assets, excluding goodwill.  Financial results for both FTSB and FFKT have been included in WesBanco’s results from their respective merger consummation dates.

Financial and operational highlights:

  • The limitation on interchange fees for debit card processing that resulted from the Durbin amendment to the 2010 Dodd-Frank Act, which took effect this quarter
    • This limitation, which only applies to banks with more than $10 billion in total assets, reduced third quarter after-tax earnings by $1.6 million, or $0.03 per diluted share
  • Continued expense management demonstrated by a year-to-date efficiency ratio of 56.09% (non-GAAP measure)
  • Key credit quality metrics such as non-performing assets, past due loans, allowance for loan loss ratios, and net loan charge-offs continue to remain at, or near, historically low levels
    • The increase in criticized and classified loans primarily reflects recent adjustments to our internal loan classification system which impacted risk grades
  • Total year-over-year organic growth in non-interest bearing demand deposits of 2.7% primarily driven by our legacy footprint
  • The pending merger with Old Line Bancshares, Inc. («OLBK») continues to progress, and the transaction is now on track to be completed during the fourth quarter of 2019, pending additional regulatory and shareholder approvals
    • Approval received from the West Virginia Department of Financial Institutions
    • The shareholder meetings of both companies are scheduled for October 29th

«WesBanco’s underlying, core performance during the third quarter of 2019, which was supported by our key long-term differentiators, continued to perform well and within our expectations,» said Todd F. Clossin, President and Chief Executive Officer of WesBanco.  «During the quarter, we experienced a flat, and, at times, inverted, yield curve; multiple Federal Reserve interest rate cuts; a revived pick-up in commercial real estate projects going to the secondary market earlier than expected due to the current rate environment; and the mandatory limitation on interchange fees for banks with more than $10 billion in total assets.  Despite these challenges, we are encouraged by the continued supportive strength of our distinct, long-term strategies and unique advantages.»

Mr. Clossin added, «We are benefiting from our deposit-rich legacy footprint, which provides funding for company-wide loan growth as we allow higher-cost certificates of deposit to mature.  We believe we are continuing to see strength across a number of our lending categories, including a 21% year-over-year increase in total gross production during the third quarter, and commercial loan pipelines, as of September 30th, exceeding $600 million for the first time.  In fact, our commercial and industrial, residential mortgage, and consumer loan categories generated growth on both a year-over-year as well as sequential quarter basis.  In addition, we are maintaining a critical focus on expense management and credit quality – two historical hallmarks of our institution.  We continue to believe we are well-positioned for long-term success, and remain positive about our opportunities.»

Balance Sheet
Portfolio loans of $7.8 billion as of September 30, 2019 increased 0.4% when compared to the prior year period, and 1.0% annualized when compared to the second quarter of 2019.  This low-single digit loan growth was driven by growth across commercial and industrial, residential real estate, and consumer loan categories.  Total deposits decreased 3.1% year-over-year to $8.7 billion due to allowing certain higher-priced certificates of deposit to mature, particularly from prior acquisitions.  Excluding CDs, total deposits of $4.6 billion were about the same as compared to the prior year period, while non-interest bearing demand deposits grew 2.7% over the same time period.

Credit Quality
Overall, we believe our credit quality ratios remained strong as we balanced disciplined loan origination in the current environment with our prudent lending standards.  As of September 30, 2019, both non-performing loans and non-performing assets as percentages of the portfolio and total assets have remained relatively low and consistent throughout the last five quarters.  Criticized and classified loan balances increased to $174.0 million, or 2.24% of total portfolio loans, due to recent adjustments to our internal loan classification system which impacted risk grades.  The provision for credit losses increased to $4.1 million at quarter-end, of which $2.1 million was due to certain borrower downgrades to criticized and classified categories from the change in the internal loan classification system as noted above.  Annualized net loan charge-offs to average loans remained low for the quarter and year-to-date periods at four and five basis points, respectively.

Net Interest Margin and Income
The net interest margin of 3.56% for the third quarter of 2019 increased 6 basis points year-over-year but decreased sequentially by 11 basis points.  Year-over-year, the net interest margin benefited from increases in the Federal Reserve Board’s target federal funds rate during 2018 and the higher margin on the acquired FFKT net assets, partially offset by higher funding costs as well as a flattening of the yield curve.  On a sequential quarter basis, the net interest margin decrease was due roughly one-half from the expected decrease in accretion from purchase accounting and one-half from the two recent 25 basis point decreases in the Federal Reserve Board’s target federal funds rate, combined with the continued partially inverted and very low yield curve.  Accretion from acquisitions benefited the third quarter net interest margin by 13 basis points, as compared to 11 basis points in the prior year period and 18 basis points in the second quarter.  Year-to-date accretion was 17 basis points, as compared to 10 basis points in the prior year. Both the first and second quarters of 2019 benefitted by 3 basis points related to impaired loan payoffs from prior acquisitions, or 2 basis points year-to-date.

Net interest income increased $6.2 million, or 6.9%, during the third quarter of 2019, as compared to the same quarter of 2018, due to a 4.2% increase in average total earning assets, primarily driven by the FFKT acquisition and related accretion from purchase accounting, as well as the overall higher net interest margin.  For the nine months ended September 30, 2019, net interest income increased $47.5 million, or 19.3%, due to higher average total earning assets and an overall higher net interest margin, as discussed for the three-month period comparison.

Non-Interest Income
For the third quarter of 2019, non-interest income of $27.0 million increased $0.7 million, or 2.8%, from the third quarter of 2018.  Mortgage banking fees increased $1.1 million, or 70.2%, compared to the prior year period due to growth in residential mortgage origination dollar volume and the associated sale of approximately one-half of those originations into the secondary market.  Service charges on deposits increased $0.7 million, or 11.8%, year-over-year due to the increased customer base from the FFKT acquisition.  Other income decreased $0.6 million, primarily due to the negative mark-to-market of existing commercial customer loan swaps, as well as lower deferred compensation-related gains, partially offset by an increase in payment processing fee income.  This quarter reflects the beginning of the on-going limitation on interchange fees for debit card processing that resulted from the Durbin amendment to the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act.  This limitation, which applies to banks with more than $10 billion in total assets, reduced electronic banking fees by approximately $1.9 million as compared to the prior year period.  In addition, because WesBanco recognizes electronic banking fees on a one-month lag, this reduction represents only two months for this initial quarter of applicability.

For the nine months ended September 30, 2019, non-interest income increased $12.2 million, or 16.5%, year-over-year to $85.9 million. In addition to the items discussed above, the primary drivers of this increase were the larger customer deposit base and higher transaction volumes associated with the FTSB and FFKT acquisitions which resulted in the year-over-year increases in electronic banking fees and service charges on deposits, while the addition of the trust business from FFKT benefited trust fees. 

Non-Interest Expense
We believe that total operating expenses continued to be well-controlled during both the three- and nine-month periods ending September 30, 2019, as demonstrated by the efficiency ratio of 57.57% and 56.09%, respectively.  Excluding merger-related expenses, non-interest expense for the three months ended September 30, 2019 increased $6.3 million, or 9.6%, to $71.6 million compared to the prior year period, reflecting the FFKT acquisition in the middle of last year’s third quarter.  This year-over-year increase is primarily due to higher salaries and wages, employee benefits, net occupancy, equipment, and other operating costs associated with additional staffing and financial center locations from the acquisition, as well as intangibles amortization.  In addition, salaries and wages reflects annual merit increases and higher average staff during the third quarter related to the FFKT acquisition.  During September 2019, the banking industry was officially notified by the FDIC that its deposit insurance fund («DIF») reached the required minimum reserve ratio of 1.38% that permitted the FDIC to offset current bank assessments with prior credits from 2016 through 2018 earned by banks with less than $10 billion in assets during that time period.  This allowed WesBanco to record a credit of $2.4 million, from the total $3.1 million assessment credit that WesBanco Bank was notified it would receive, covering the FDIC insurance expense otherwise assessable for the second and third quarters of $1.2 million per quarter.  The remaining credit of approximately $0.7 million is anticipated to be recorded during the fourth quarter. 

For the nine months ended September 30, 2019, non-interest expense net of merger-related expenses increased $37.0 million, or 20.8%, to $214.8 million compared to the prior year period, reflecting the acquisitions of FTSB and FFKT and similar factors noted above for the quarterly period.

Capital
WesBanco continues to maintain what we believe are strong regulatory capital ratios as both consolidated and bank-level regulatory capital ratios are well above the applicable «well-capitalized» standards promulgated by bank regulators and the BASEL III capital standards.  At September 30, 2019, Tier I leverage was 11.30%, Tier I Risk-Based capital was 15.40%, Total Risk-Based capital was 16.36%, and the Common Equity Tier 1 capital ratio («CET 1») was 13.87%.  Tangible common equity, increased to 10.24% at period-end from 8.66% as of September 30, 2018, as an increase in other comprehensive income from the mark-to-market of the available-for-sale portion of the investment portfolio benefitted this ratio.

Conference Call and Webcast
WesBanco will host a conference call to discuss the Company’s financial results for the third quarter of 2019 at 2:00 p.m. ET on Thursday, October 24, 2019.  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 10126803.  The replay will begin at approximately 4:00 p.m. ET on October 24, and end at 12 a.m. ET on November 7.  An archive of the webcast will be available for one year on the Investor Relations section of the Company’s website (www.wesbanco.com).

Forward-Looking Statements
Forward-looking statements in this report relating to WesBanco’s plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  The information contained in this report should be read in conjunction with WesBanco’s Form 10-K for the year ended December 31, 2018 and documents subsequently filed by WesBanco with the Securities and Exchange Commission («SEC»), including WesBanco’s Form 10-Q’s for the quarters ended March 31 and June 30, 2019, 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 proposed merger with Old Line Bancshares, Inc. («Old Line») may not close when expected, that the businesses of WesBanco and Old Line 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 Old Line may not be fully realized within the expected timeframes; disruption from the merger of WesBanco and Old Line 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 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.

Additional Information About the Merger and Where to Find It
On July 23, 2019, WesBanco and WesBanco Bank, Inc. («WesBanco Bank») entered into an Agreement and Plan of Merger with Old Line and Old Line Bank, Inc. («Old Line Bank»), pursuant to which Old Line will be merged with and into WesBanco, with WesBanco being the surviving company (the «Merger»), and Old Line Bank will be merged with and into WesBanco Bank, with WesBanco Bank the surviving bank. In connection with the proposed Merger, WesBanco filed with the Securities and Exchange Commission («SEC») a Registration Statement on Form S-4, which was declared effective on September 23, 2019, that includes a Proxy Statement of Old Line and WesBanco and a Prospectus of WesBanco, as well as other relevant documents concerning the proposed transaction. SHAREHOLDERS OF WESBANCO, STOCKHOLDERS OF OLD LINE AND OTHER INTERESTED PARTIES ARE URGED TO READ THE REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS REGARDING THE MERGER AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. The Proxy Statement/Prospectus dated September 23, 2019 was mailed to shareholders of WesBanco and stockholders of Old Line on or around September 26, 2019. The Old Line stockholders meeting and the WesBanco shareholders meeting are both scheduled for October 29, 2019. In addition, the Registration Statement on Form S-4, which includes the Proxy Statements/Prospectus, and other related documents filed by WesBanco with the SEC, may be obtained for free at the SEC’s website at http://www.sec.gov, and from either WesBanco’s or Old Line’s website at http://www.wesbanco.com or http://www.oldlinebank.com, respectively.

Participants in the Solicitation
WesBanco and Old Line and their respective executive officers and directors may be deemed to be participants in the solicitation of proxies from the shareholders of WesBanco and the stockholders of Old Line in connection with the proposed Merger. Information about the directors and executive officers of WesBanco is set forth in the proxy statement for WesBanco’s 2019 annual meeting of shareholders, as filed with the SEC on March 13, 2019 and as supplemented on April 5, 2019.  Information about the directors and executive officers of Old Line is set forth in the proxy statement for Old Line’s 2019 annual meeting of stockholders, as filed with the SEC on April 26, 2019.  Information about any other persons who may, under the rules of the SEC, be considered participants in the solicitation of WesBanco shareholders or Old Line stockholders in connection with the proposed Merger is included in the Proxy Statement/Prospectus. You can obtain free copies of these documents from the SEC, WesBanco or Old Line using the website information above.  This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

WESBANCO SHAREHOLDERS AND OLD LINE STOCKHOLDERS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS CAREFULLY BEFORE MAKING ANY VOTING OR INVESTMENT DECISIONS WITH RESPECT TO THE PROPOSED MERGER.

About WesBanco, Inc.
Founded in 1870, WesBanco, Inc. (www.wesbanco.com) is a multi-state, bank holding company with total assets of approximately $12.6 billion (as of September 30, 2019).  WesBanco is a diversified and well-balanced financial services institution, with a community bank at its core, built upon a strong legacy of credit and risk management.  WesBanco has meaningful market share across its key geographies maintained by its commitment to dedicated customer service and solid fee-based businesses. It also provides wealth management services through a century-old trust and wealth management business, with approximately $4.4 billion of assets under management (as of September 30, 2019), and serves as registered investment advisor to a proprietary mutual fund family, the WesMark Funds.  WesBanco’s banking subsidiary, WesBanco Bank, Inc., operates 199 financial centers in the states of Indiana, Kentucky, Ohio, Pennsylvania, and West Virginia.  In addition, WesBanco operates an insurance agency, WesBanco Insurance Services, Inc., and a full service broker/dealer, WesBanco Securities, Inc.

 

WESBANCO, INC.

Consolidated Selected Financial Highlights

Page 5

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

For the Three Months Ended

For the Nine Months Ended

STATEMENT OF INCOME

September 30,

September 30,

Interest and dividend income

2019

2018

% Change

2019

2018

% Change

Loans, including fees

$             95,369

$               86,605

10.1

$          287,287

$             234,276

22.6

Interest and dividends on securities:

Taxable 

15,887

14,964

6.2

49,061

40,702

20.5

Tax-exempt

4,759

5,326

(10.6)

15,443

15,216

1.5

Total interest and dividends on securities

20,646

20,290

1.8

64,504

55,918

15.4

Other interest income 

1,333

1,498

(11.0)

4,153

3,402

22.1

          Total interest and dividend income

117,348

108,393

8.3

355,944

293,596

21.2

Interest expense

Interest bearing demand deposits

4,489

3,501

28.2

12,749

9,174

39.0

Money market deposits

1,973

1,360

45.1

5,881

3,332

76.5

Savings deposits

861

352

144.6

2,061

768

168.4

Certificates of deposit

3,830

3,276

16.9

11,831

8,789

34.6

Total interest expense on deposits

11,153

8,489

31.4

32,522

22,063

47.4

Federal Home Loan Bank borrowings

6,645

6,691

(0.7)

19,269

17,142

12.4

Other short-term borrowings

1,353

965

40.2

4,392

2,497

75.9

Subordinated debt and junior subordinated debt 

2,077

2,315

(10.3)

6,820

6,425

6.1

Total interest expense

21,228

18,460

15.0

63,003

48,127

30.9

Net interest income 

96,120

89,933

6.9

292,941

245,469

19.3

Provision for credit losses

4,121

1,035

298.2

9,375

4,911

90.9

Net interest income after provision for credit losses

91,999

88,898

3.5

283,566

240,558

17.9

Non-interest income

Trust fees

6,425

6,265

2.6

19,880

18,520

7.3

Service charges on deposits

7,056

6,313

11.8

19,803

16,282

21.6

Electronic banking fees

5,253

6,139

(14.4)

18,299

16,697

9.6

Net securities brokerage revenue

1,765

1,836

(3.9)

5,597

5,315

5.3

Bank-owned life insurance

1,373

1,232

11.4

4,032

5,116

(21.2)

Mortgage banking income

2,588

1,521

70.2

5,262

4,297

22.5

Net securities gains

235

84

179.8

3,800

403

842.9

Net gain on other real estate owned and other assets

158

150

5.3

670

641

4.5

Other income

2,097

2,684

(21.9)

8,535

6,444

32.4

Total non-interest income

26,950

26,224

2.8

85,878

73,715

16.5

Non-interest expense

Salaries and wages

32,915

30,335

8.5

95,501

82,213

16.2

Employee benefits

9,726

7,905

23.0

29,419

22,782

29.1

Net occupancy

5,392

4,957

8.8

16,343

13,715

19.2

Equipment 

5,273

4,488

17.5

14,924

12,532

19.1

Marketing

1,505

1,446

4.1

4,002

3,967

0.9

FDIC insurance 

(1,221)

789

(254.8)

1,287

2,315

(44.4)

Amortization of intangible assets

2,446

1,821

34.3

7,424

4,218

76.0

Restructuring and merger-related expense

1,688

10,811

(84.4)

4,876

16,468

(70.4)

Other operating expenses  

15,544

13,568

14.6

45,876

36,024

27.3

Total non-interest expense

73,268

76,120

(3.7)

219,652

194,234

13.1

Income before provision for income taxes

45,681

39,002

17.1

149,792

120,039

24.8

Provision for income taxes 

8,334

6,516

27.9

27,295

20,855

30.9

Net Income

$             37,347

$               32,486

15.0

$          122,497

$               99,184

23.5

Taxable equivalent net interest income

$            97,385

$            91,348

6.6

$          297,046

$          249,514

19.0

Per common share data

Net income per common share – basic

$                 0.68

$                   0.65

4.6

$                 2.24

$                   2.11

6.2

Net income per common share – diluted

0.68

0.64

6.3

2.24

2.11

6.2

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

0.71

0.81

(12.3)

2.31

2.38

(2.9)

Dividends declared

0.31

0.29

6.9

0.93

0.87

6.9

Book value (period end)

38.42

35.30

8.8

38.42

35.30

8.8

Tangible book value (period end) (1)

21.89

18.54

18.1

21.89

18.54

18.1

Average common shares outstanding – basic

54,695,578

50,277,847

8.8

54,641,057

46,965,095

16.3

Average common shares outstanding – diluted

54,751,344

50,432,112

8.6

54,705,761

47,107,829

16.1

Period end common shares outstanding

54,691,225

54,603,967

0.2

54,691,225

54,603,967

0.2

(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 merger-related expenses.

 

 

WESBANCO, INC.

Consolidated Selected Financial Highlights

Page 6

(unaudited, dollars in thousands)

Selected ratios

For the Nine Months Ended

September 30,

2019

2018

% Change

Return on average assets

1.31

%

1.21

%

8.26

%

Return on average assets, excluding

    after-tax merger-related expenses

1.35

1.37

(1.46)

Return on average equity

7.99

8.59

(6.98)

Return on average equity, excluding

    after-tax merger-related expenses

8.24

9.71

(15.14)

Return on average tangible equity (1)

14.97

15.71

(4.71)

Return on average tangible equity, excluding 

    after-tax merger-related expenses

15.42

17.70

(12.88)

Yield on earning assets (2) 

4.41

4.11

7.30

Cost of interest bearing liabilities

1.07

0.89

20.22

Net interest spread (2)

3.34

3.22

3.73

Net interest margin (2)

3.64

3.44

5.81

Efficiency (1) (2)

56.09

55.00

1.98

Average loans to average deposits

87.77

88.25

(0.54)

Annualized net loan charge-offs/average loans

0.05

0.02

150.00

Effective income tax rate 

18.22

17.37

4.89

For the Quarter Ended

Sept. 30,

June 30,

Mar. 31,

Dec. 31,

Sept. 30,

2019

2019

2019

2018

2018

Return on average assets

1.19

%

1.44

%

1.31

%

1.39

%

1.10

%

Return on average assets, excluding

    after-tax merger-related expenses

1.23

1.44

1.39

1.42

1.39

Return on average equity

7.06

8.77

8.17

8.94

7.50

Return on average equity, excluding

    after-tax merger-related expenses

7.32

8.78

8.67

9.16

9.47

Return on average tangible equity (1)

13.06

16.35

15.65

17.67

14.25

Return on average tangible equity, excluding 

    after-tax merger-related expenses

13.50

16.38

16.56

18.09

17.85

Yield on earning assets (2) 

4.34

4.45

4.45

4.42

4.21

Cost of interest bearing liabilities

1.09

1.08

1.06

0.97

0.95

Net interest spread (2)

3.25

3.37

3.39

3.45

3.26

Net interest margin (2)

3.56

3.67

3.68

3.72

3.50

Efficiency (1) (2) 

57.57

54.87

55.89

53.62

55.55

Average loans to average deposits

88.96

87.35

87.01

85.94

87.56

Annualized net loan charge-offs (recoveries)/average loans

0.04

0.05

0.07

0.14

(0.02)

Effective income tax rate 

18.24

18.40

18.01

19.37

16.71

Trust assets, market value at period end

$     4,443,430

$        4,544,103

$        4,514,013

$        4,269,961

$        4,743,894

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

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

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

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

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

 

 

WESBANCO, INC.

Consolidated Selected Financial Highlights

Page 7

(unaudited, dollars in thousands, except shares)

% Change

Balance sheets

September 30,

December 31,

December 31, 2018

Assets

2019

2018

% Change

2018

to September 30, 2019

Cash and due from banks

$           209,606

$        184,826

13.4

$              124,650

68.2

Due from banks – interest bearing

34,727

88,854

(60.9)

44,536

(22.0)

Securities:

     Equity securities, at fair value

11,644

12,784

(8.9)

11,737

(0.8)

     Available-for-sale debt securities, at fair value

2,209,199

2,008,232

10.0

2,114,129

4.5

     Held-to-maturity debt securities (fair values of $877,809; $1,014,361 

     and $1,020,743, respectively)

852,824

1,025,538

(16.8)

1,020,934

(16.5)

          Total securities

3,073,667

3,046,554

0.9

3,146,800

(2.3)

Loans held for sale

20,715

55,913

(63.0)

8,994

130.3

Portfolio loans:

     Commercial real estate

3,854,653

3,906,221

(1.3)

3,853,695

0.0

     Commercial and industrial

1,332,275

1,292,073

3.1

1,265,460

5.3

     Residential real estate 

1,638,574

1,598,477

2.5

1,611,607

1.7

     Home equity

587,745

604,106

(2.7)

599,331

(1.9)

     Consumer 

343,505

325,546

5.5

326,188

5.3

Total portfolio loans, net of unearned income

7,756,752

7,726,423

0.4

7,656,281

1.3

Allowance for loan losses

(54,317)

(48,902)

(11.1)

(48,948)

(11.0)

          Net portfolio loans

7,702,435

7,677,521

0.3

7,607,333

1.3

Premises and equipment, net

178,344

159,284

12.0

166,925

6.8

Accrued interest receivable

37,156

39,465

(5.9)

38,853

(4.4)

Goodwill and other intangible assets, net

914,705

928,083

(1.4)

918,850

(0.5)

Bank-owned life insurance

229,349

223,995

2.4

225,317

1.8

Other assets

193,183

194,984

(0.9)

176,374

9.5

Total Assets

$    12,593,887

$ 12,599,479

(0.0)

$       12,458,632

1.1

Liabilities

Deposits:

     Non-interest bearing demand

$        2,476,392

$      2,411,862

2.7

$           2,441,041

1.4

     Interest bearing demand

2,128,581

2,187,662

(2.7)

2,146,508

(0.8)

     Money market

1,085,732

1,178,950

(7.9)

1,142,925

(5.0)

     Savings deposits

1,698,125

1,649,684

2.9

1,645,549

3.2

     Certificates of deposit

1,275,533

1,513,600

(15.7)

1,455,610

(12.4)

          Total deposits

8,664,363

8,941,758

(3.1)

8,831,633

(1.9)

Federal Home Loan Bank borrowings

1,161,092

1,131,253

2.6

1,054,174

10.1

Other short-term borrowings

325,247

294,281

10.5

290,522

12.0

Subordinated debt and junior subordinated debt 

156,632

189,745

(17.5)

189,842

(17.5)

          Total borrowings

1,642,971

1,615,279

1.7

1,534,538

7.1

Accrued interest payable

5,273

6,623

(20.4)

4,627

14.0

Other liabilities

180,011

108,550

65.8

109,007

65.1

Total Liabilities

10,492,618

10,672,210

(1.7)

10,479,805

0.1

Shareholders’ Equity

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

     none outstanding

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

          2019 and 2018, respectively; 54,698,250,  54,604,294 and 54,604,294 shares

     issued, respectively; 54,691,225, 54,603,967 and 54,598,134 shares

113,954

113,758

0.2

113,758

0.2

     outstanding, respectively

Capital surplus

1,169,595

1,165,006

0.4

1,166,701

0.2

Retained earnings

809,332

709,477

14.1

737,581

9.7

Treasury stock ( 7,025, 327 and 6,160 shares – at cost, respectively)

(252)

(15)

(1,580.0)

(274)

8.0

Accumulated other comprehensive income (loss)

9,922

(59,873)

116.6

(37,871)

126.2

Deferred benefits for directors

(1,282)

(1,084)

(18.3)

(1,068)

(20.0)

Total Shareholders’ Equity

2,101,269

1,927,269

9.0

1,978,827

6.2

Total Liabilities and Shareholders’ Equity

$    12,593,887

$ 12,599,479

(0.0)

$       12,458,632

1.1

 

 

WESBANCO, INC.

Consolidated Selected Financial Highlights

Page 8

(unaudited, dollars in thousands, except shares)

Balance sheets

September 30,

June 30,

Assets

2019

2019

% Change

Cash and due from banks

$        209,606

$       157,965

32.7

Due from banks – interest bearing

34,727

36,390

(4.6)

Securities:

          Equity securities, at fair value

11,644

11,817

(1.5)

          Available-for-sale, at fair value

2,209,199

2,129,284

3.8

          Held-to-maturity (fair values of $877,809 and 921,534, respectively)

852,824

900,605

(5.3)

               Total securities

3,073,667

3,041,706

1.1

Loans held for sale

20,715

18,649

11.1

Portfolio Loans:

          Commercial real estate

3,854,653

3,877,633

(0.6)

          Commercial and industrial

1,332,275

1,300,577

2.4

          Residential real estate 

1,638,574

1,633,613

0.3

          Home equity

587,745

590,303

(0.4)

          Consumer 

343,505

335,728

2.3

Total portfolio loans, net of unearned income

7,756,752

7,737,854

0.2

Allowance for loan losses

(54,317)

(50,859)

(6.8)

               Net portfolio loans

7,702,435

7,686,995

0.2

Premises and equipment, net

178,344

179,866

(0.8)

Accrued interest receivable

37,156

38,450

(3.4)

Goodwill and other intangible assets, net

914,705

914,678

0.0

Bank-owned life insurance

229,349

227,976

0.6

Other assets

193,183

191,978

0.6

Total Assets

$ 12,593,887

$12,494,653

0.8

Liabilities

Deposits:

          Non-interest bearing demand

$     2,476,392

$     2,481,065

(0.2)

          Interest bearing demand

2,128,581

2,079,795

2.3

          Money market

1,085,732

1,098,917

(1.2)

          Savings deposits

1,698,125

1,670,035

1.7

          Certificates of deposit

1,275,533

1,365,116

(6.6)

               Total deposits

8,664,363

8,694,928

(0.4)

Federal Home Loan Bank borrowings

1,161,092

1,121,283

3.6

Other short-term borrowings

325,247

296,148

9.8

Subordinated debt and junior subordinated debt 

156,632

156,534

0.1

               Total borrowings

1,642,971

1,573,965

4.4

Accrued interest payable

5,273

6,559

(19.6)

Other liabilities

180,011

145,085

24.1

Total liabilities

10,492,618

10,420,537

0.7

Shareholders’ Equity

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

          none outstanding

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

          54,698,250 and 54,697,251 shares issued, respectively;

          54,691,225 and 54,697,199 shares outstanding, respectively

113,954

113,952

0.0

Capital surplus

1,169,595

1,168,212

0.1

Retained earnings

809,332

788,900

2.6

Treasury stock (7,025 and 52 shares – at cost, respectively)

(252)

(2)

(12497.0)

Accumulated other comprehensive income (loss)

9,922

4,113

(141.2)

Deferred benefits for directors

(1,282)

(1,059)

21.1

Total Shareholders’ Equity

2,101,269

2,074,116

1.3

Total Liabilities and Shareholders’ Equity

$ 12,593,887

$12,494,653

0.8

 

 

WESBANCO, INC.

Consolidated Selected Financial Highlights

Page 9

(unaudited, dollars in thousands)

Average balance sheet and

net interest margin analysis

Three Months Ended September 30,

Nine Months Ended September 30,

2019

2018

2019

2018

Average 

Average

Average 

Average

Average 

Average

Average 

Average

Assets

Balance

Rate

Balance

Rate

Balance

Rate

Balance

Rate

Due from banks – interest bearing

$            71,163

2.41

%

$            94,337

2.29

%

$                 73,617

2.50

%

$           50,686

2.28

%

Loans, net of unearned income (1)

7,751,724

4.88

7,227,835

4.75

7,704,212

4.99

6,787,565

4.61

Securities: (2)

    Taxable

2,301,933

2.76

2,194,708

2.73

2,330,439

2.81

2,038,978

2.66

    Tax-exempt (3)

684,164

3.52

785,699

3.43

744,949

3.50

751,403

3.42

        Total securities

2,986,097

2.93

2,980,407

2.91

3,075,388

2.97

2,790,381

2.87

Other earning assets 

53,181

6.80

60,783

6.26

51,954

7.12

56,182

6.02

         Total earning assets (3)

10,862,165

4.34

%

10,363,362

4.21

%

10,905,171

4.41

%

9,684,814

4.11

%

Other assets

1,625,988

1,375,434

1,590,847

1,238,728

Total Assets

$   12,488,153

$   11,738,796

$        12,496,018

$  10,923,542

Liabilities and Shareholders’ Equity

Interest bearing demand deposits

$        2,126,720

0.84

%

$        1,983,340

0.70

%

$            2,131,887

0.80

%

$      1,844,423

0.67

%

Money market accounts 

1,097,930

0.71

1,111,341

0.49

1,122,665

0.70

1,051,104

0.42

Savings deposits

1,686,267

0.20

1,511,075

0.09

1,674,262

0.16

1,389,613

0.07

Certificates of deposit

1,321,696

1.15

1,439,658

0.90

1,385,349

1.14

1,366,109

0.86

    Total interest bearing deposits

6,232,613

0.71

6,045,414

0.56

6,314,163

0.69

5,651,249

0.52

Federal Home Loan Bank borrowings

1,048,401

2.51

1,194,940

2.22

1,036,464

2.49

1,138,350

2.01

Other borrowings

317,931

1.69

269,342

1.42

321,976

1.82

249,030

1.34

Subordinated debt and junior subordinated debt 

156,561

5.26

180,074

5.10

169,944

5.37

172,518

4.98

      Total interest bearing liabilities 

7,755,506

1.09

%

7,689,770

0.95

%

7,842,547

1.07

%

7,211,147

0.89

%

Non-interest bearing demand deposits

2,481,384

2,209,235

2,463,076

2,040,292

Other liabilities

153,729

120,302

139,761

127,699

Shareholders’ equity

2,097,534

1,719,489

2,050,634

1,544,404

Total Liabilities and Shareholders’ Equity

$   12,488,153

$   11,738,796

$        12,496,018

$  10,923,542

Taxable equivalent net interest spread

3.25

%

3.26

%

3.34

%

3.22

%

Taxable equivalent net interest margin 

3.56

%

3.50

%

3.64

%

3.44

%

1) Gross of allowance for loan losses and net of unearned income.  Includes non-accrual and loans held for sale.

Loan fees included in interest income on loans are $0.4 million and $0.8 million for the three months ended September 30, 2019 and 2018 and $1.3 million and $2.1 million for

   the nine months ended September 30, 2019 and 2018, respectively.

Additionally, loan accretion included in interest income on loans acquired from prior acquisitions was $3.4 million and $2.4 million for the three months ended September 30, 2019 and 2018 , respectively,   

   and $13.0 million and $5.9 million  for the nine months ended September 30, 2019 and 2018, respectively.

Accretion on interest bearing liabilities acquired from the prior acquisitions was $0.3 million and $0.6 million for the three months ended September 30, 2019 and 2018, respectively, 

   and $0.9 million and $1.5 million  for the nine months ended September 30, 2019 and 2018, respectively.

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

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

 

 

WESBANCO, INC.

Consolidated Selected Financial Highlights

 Page 10

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

Quarter Ended

Statement of Income

Sept.  30,

June 30,

Mar. 31,

Dec. 31,

Sept.  30,

Interest and dividend income

2019

2019

2019

2018

2018

Loans, including fees

$                        95,369

$                96,415

$              95,502

$                97,685

$              86,605

Interest and dividends on securities:

Taxable 

15,887

16,444

16,733

16,196

14,964

Tax-exempt

4,759

5,142

5,541

5,562

5,326

Total interest and dividends on securities

20,646

21,586

22,274

21,758

20,290

Other interest income 

1,333

1,542

1,277

1,944

1,498

          Total interest and dividend income

117,348

119,543

119,053

121,387

108,393

Interest expense

Interest bearing demand deposits

4,489

4,314

3,946

4,000

3,501

Money market deposits

1,973

2,009

1,899

1,683

1,360

Savings deposits

861

678

522

452

352

Certificates of deposit

3,830

4,098

3,903

3,662

3,276

Total interest expense on deposits

11,153

11,099

10,270

9,797

8,489

Federal Home Loan Bank borrowings

6,645

6,287

6,337

6,191

6,691

Other short-term borrowings

1,353

1,483

1,556

1,221

965

Subordinated debt and junior subordinated debt

2,077

2,214

2,529

2,411

2,315

Total interest expense

21,228

21,083

20,692

19,620

18,460

Net interest income 

96,120

98,460

98,361

101,767

89,933

Provision for credit losses

4,121

2,747

2,507

2,854

1,035

Net interest income after provision for credit losses

91,999

95,713

95,854

98,913

88,898

Non-interest income

Trust fees

6,425

6,339

7,115

6,103

6,265

Service charges on deposits

7,056

6,197

6,549

7,387

6,313

Electronic banking fees

5,253

7,154

5,892

6,604

6,139

Net securities brokerage revenue

1,765

1,973

1,860

1,871

1,836

Bank-owned life insurance

1,373

1,340

1,319

1,312

1,232

Mortgage banking income

2,588

1,618

1,056

1,543

1,521

Net securities gains/(losses)

235

2,909

657

(1,303)

84

Net gain / (loss) on other real estate owned and other assets

158

376

136

(117)

150

Other income

2,097

3,250

3,189

3,161

2,684

Total non-interest income

26,950

31,156

27,773

26,561

26,224

Non-interest expense

Salaries and wages

32,915

31,646

30,940

32,389

30,335

Employee benefits

9,726

9,705

9,989

7,298

7,905

Net occupancy

5,392

5,385

5,566

5,455

4,957

Equipment 

5,273

4,818

4,833

4,667

4,488

Marketing

1,505

1,254

1,243

1,402

1,446

FDIC insurance 

(1,221)

1,155

1,353

927

789

Amortization of intangible assets

2,446

2,465

2,514

2,762

1,821

Restructuring and merger-related expense

1,688

81

3,107

1,389

10,811

Other operating expenses  

15,544

15,443

14,887

14,701

13,568

Total non-interest expense

73,268

71,952

74,432

70,990

76,120

Income before provision for income taxes

45,681

54,917

49,195

54,484

39,002

Provision for income taxes 

8,334

10,103

8,858

10,556

6,516

Net Income

$                        37,347

$                44,814

$              40,337

$                43,928

$              32,486

Taxable equivalent net interest income

$                       97,385

$                99,827

$             99,834

$             103,246

$             91,348

Per common share data

Net income per common share – basic

$                            0.68

$                    0.82

$                  0.74

$                    0.80

$                  0.65

Net income per common share – diluted

0.68

0.82

0.74

0.80

0.64

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

0.71

0.82

0.78

0.82

0.81

Dividends declared

0.31

0.31

0.31

0.29

0.29

Book value (period end)

38.42

37.92

37.05

36.24

35.30

Tangible book value (period end) (1)

21.89

21.40

20.49

19.63

18.54

Average common shares outstanding – basic

54,695,578

54,628,029

54,598,499

54,598,142

50,277,847

Average common shares outstanding – diluted

54,751,344

54,773,521

54,706,337

54,706,691

50,432,112

Period end common shares outstanding

54,691,225

54,697,199

54,599,127

54,598,134

54,603,967

Full time equivalent employees

2,330

2,353

2,329

2,388

2,404

(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 merger-related expenses.

 

 

WESBANCO, INC.

Consolidated Selected Financial Highlights

 Page 11 

(unaudited, dollars in thousands)

Quarter Ended

Sept. 30,

June 30,

Mar. 31,

Dec. 31,

Sept. 30,

Asset quality data

2019

2019

2019

2018

2018

Non-performing assets:

Troubled debt restructurings – accruing

$           5,840

$           5,487

$           5,481

$           5,744

$           6,338

Non-accrual loans:

Troubled debt restructurings

1,345

1,924

2,936

2,855

2,036

Other non-accrual loans

33,456

30,974

27,291

27,845

29,238

    Total non-accrual loans

34,801

32,898

30,227

30,700

31,274

    Total non-performing loans 

40,641

38,385

35,708

36,444

37,612

Other real estate and repossessed assets

3,678

4,973

6,001

7,265

6,877

Total non-performing assets

$         44,319

$         43,358

$         41,709

$         43,709

$         44,489

Past due loans (1):

Loans past due 30-89 days

$         17,906

$         15,446

$         21,433

$         19,569

$         18,016

Loans past due 90 days or more

5,425

2,634

2,740

4,077

2,451

Total past due loans

$         23,331

$         18,080

$         24,173

$         23,646

$         20,467

Criticized and classified loans (2):

Criticized loans

$         78,880

$         73,236

$         69,691

$         51,710

$         46,370

Classified loans

95,071

41,004

39,412

31,244

31,437

Total criticized and classified loans

$       173,951

$       114,240

$       109,103

$         82,954

$         77,807

Loans past due 30-89 days / total portfolio loans

0.23

%

0.20

%

0.28

%

0.26

%

0.23

%

Loans past due 90 days or more / total portfolio loans

0.07

0.03

0.04

0.05

0.03

Non-performing loans / total portfolio loans

0.52

0.50

0.47

0.48

0.49

Non-performing assets/total portfolio loans, other

real estate and repossessed assets

0.57

0.56

0.54

0.57

0.58

Non-performing assets / total assets

0.35

0.35

0.33

0.35

0.35

Criticized and classified loans / total portfolio loans

2.24

1.48

1.42

1.08

1.01

Allowance for loan losses

Allowance for loan losses

$         54,317

$         50,859

$         48,866

$         48,948

$         48,902

Provision for credit losses

4,121

2,747

2,507

2,854

1,035

Net loan and deposit account overdraft charge-offs

791

947

1,370

2,750

(306)

Annualized net loan charge-offs /average loans

0.04

%

0.05

%

0.07

%

0.14

%

(0.02)

%

Allowance for loan losses / total portfolio loans

0.70

%

0.66

%

0.64

%

0.64

%

0.63

%

Allowance for loan losses / non-performing loans

1.34

x

1.32

x

1.37

x

1.34

x

1.30

x

Allowance for loan losses / non-performing loans and

loans past due 

0.85

x

0.90

x

0.82

x

0.81

x

0.84

x

Quarter Ended

Sept. 30,

June 30,

Mar. 31,

Dec. 31,

Sept. 30,

2019

2019

2019

2018

2018

Capital ratios

Tier I leverage capital

11.30

%

11.09

%

10.98

%

10.74

%

11.22

%

Tier I risk-based capital

15.40

15.39

15.31

15.09

14.32

Total risk-based capital

16.36

16.32

16.22

15.99

15.20

Common equity tier 1 capital ratio (CET 1)

13.87

13.83

13.48

13.14

12.41

Average shareholders’ equity to average assets

16.80

16.42

16.01

15.51

14.65

Tangible equity to tangible assets (3)

10.24

10.10

9.57

9.28

8.66

(1) Excludes non-performing loans.

(2) Commercial criticized and classified 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.

 

 

NON-GAAP FINANCIAL MEASURES

Page 12

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

Three Months Ended

Year to Date 

Sept. 30,

June 30,

Mar. 31,

Dec. 31,

Sept. 30,

Sept. 30,

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

2019

2019

2019

2018

2018

2019

2018

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

Net income (annualized)

$             148,169

$         179,748

$         163,589

$         174,280

$         128,886

$         163,778

$      132,609

Plus: after-tax merger-related expenses (annualized)  (1)

5,291

257

9,954

4,353

33,885

5,150

17,394

Net income excluding after-tax merger-related expenses (annualized)

153,460

180,005

173,543

178,633

162,771

168,928

150,003

Average total assets

$        12,488,153

$    12,489,663

$    12,510,032

$    12,565,880

$    11,738,796

$    12,496,018

$ 10,923,542

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

1.23%

1.44%

1.39%

1.42%

1.39%

1.35%

1.37%

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

Net income (annualized)

$             148,169

$         179,748

$         163,589

$         174,280

$         128,886

$         163,778

$      132,609

Plus: after-tax merger-related expenses (annualized)  (1)

5,291

257

9,954

4,353

33,885

5,150

17,394

Net income excluding after-tax merger-related expenses (annualized)

153,460

180,005

173,543

178,633

162,771

168,928

150,003

Average total shareholders’ equity

2,097,534

2,050,190

2,002,710

1,949,530

1,719,489

2,050,634

1,544,404

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

7.32%

8.78%

8.67%

9.16%

9.47%

8.24%

9.71%

Return on average tangible equity:

Net income (annualized)

$             148,169

$         179,748

$         163,589

$         174,280

$         128,886

$         163,778

$      132,609

Plus: amortization of intangibles (annualized) (1)

7,666

7,811

8,055

8,657

5,707

7,841

4,455

Net income before amortization of intangibles (annualized)

155,835

187,559

171,644

182,937

134,593

171,619

137,064

Average total shareholders’ equity

2,097,534

2,050,190

2,002,710

1,949,530

1,719,489

2,050,634

1,544,404

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

(904,204)

(903,243)

(906,041)

(914,214)

(775,267)

(904,489)

(671,786)

Average tangible equity

$          1,193,330

$      1,146,947

$      1,096,669

$      1,035,316

$         944,222

$      1,146,145

$      872,618

Return on average tangible equity

13.06%

16.35%

15.65%

17.67%

14.25%

14.97%

15.71%

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

Net income (annualized)

$             148,169

$         179,748

$         163,589

$         174,280

$         128,886

$         163,778

$      132,609

Plus: after-tax merger-related expenses (annualized)  (1)

5,291

257

9,954

4,353

33,885

5,150

17,394

Plus: amortization of intangibles (annualized) (1)

7,666

7,811

8,055

8,657

5,707

7,841

4,455

Net income before amortization of intangibles and excluding 

    after-tax merger-related expenses (annualized)

161,126

187,816

181,598

187,290

168,478

176,769

154,458

Average total shareholders’ equity

2,097,534

2,050,190

2,002,710

1,949,530

1,719,489

2,050,634

1,544,404

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

(904,204)

(903,243)

(906,041)

(914,214)

(775,267)

(904,489)

(671,786)

Average tangible equity

$          1,193,330

$      1,146,947

$      1,096,669

$      1,035,316

$         944,222

$      1,146,145

$      872,618

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

13.50%

16.38%

16.56%

18.09%

17.85%

15.42%

17.70%

Efficiency ratio:

Non-interest expense

$               73,268

$           71,952

$           74,432

$           70,990

$           76,120

$         219,652

$      194,234

Less: restructuring and merger-related expense

(1,688)

(81)

(3,107)

(1,389)

(10,811)

(4,876)

(16,468)

Non-interest expense excluding restructuring and merger-related expense

71,580

71,871

71,325

69,601

65,309

214,776

177,766

Net interest income on a fully taxable equivalent basis

97,385

99,827

99,834

103,246

91,348

297,046

249,514

Non-interest income

26,950

31,156

27,773

26,561

26,224

85,878

73,715

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

$             124,335

$         130,983

$         127,607

$         129,807

$         117,572

$         382,924

$      323,229

Efficiency Ratio

57.57%

54.87%

55.89%

53.62%

55.55%

56.09%

55.00%

Net income, excluding after-tax merger-related expenses:

Net income

$               37,347

$           44,814

$           40,337

$           43,928

$           32,486

$         122,497

$        99,184

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

1,334

64

2,454

1,097

8,541

3,852

13,010

Net income, excluding after-tax merger-related expenses

$               38,681

$           44,878

$           42,791

$           45,025

$           41,027

$         126,349

$      112,194

Net Income, excluding after-tax merger-related expenses per diluted share:

Net income per diluted share

$                   0.68

$               0.82

$               0.74

$               0.80

$               0.64

$               2.24

$            2.11

Add: After-tax merger-related expenses per diluted share (1)

0.03

0.00

0.04

0.02

0.17

0.07

0.27

Net income, excluding after-tax merger-related expenses per diluted share

$                   0.71

$               0.82

$               0.78

$               0.82

$               0.81

$               2.31

$            2.38

Period End

Sept. 30,

June 30,

Mar. 31,

Dec. 31,

Sept. 30,

2019

2019

2019

2018

2018

Tangible book value per share:

Total shareholders’ equity

$          2,101,269

$      2,074,116

$      2,023,139

$      1,978,827

$      1,927,269

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

(904,256)

(903,729)

(904,144)

(906,887)

(915,022)

Tangible equity

1,197,013

1,170,387

1,118,995

1,071,940

1,012,247

Common shares outstanding

54,691,225

54,697,199

54,599,127

54,598,134

54,603,967

Tangible book value per share

$                 21.89

$             21.40

$             20.49

$             19.63

$             18.54

Tangible equity to tangible assets:

Total shareholders’ equity

$          2,101,269

$      2,074,116

$      2,023,139

$      1,978,827

$      1,927,269

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

(904,256)

(903,729)

(904,144)

(906,887)

(915,022)

Tangible equity

1,197,013

1,170,387

1,118,995

1,071,940

1,012,247

Total assets

12,593,887

12,494,653

12,601,408

12,458,632

12,599,479

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

(904,256)

(903,729)

(904,144)

(906,887)

(915,022)

Tangible assets

$        11,689,631

$    11,590,924

$    11,697,264

$    11,551,745

$    11,684,457

Tangible equity to tangible assets

10.24%

10.10%

9.57%

9.28%

8.66%

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

 

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SOURCE WesBanco, Inc.