Wesbanco, Inc. · NASDAQ:WSBC
Wesbanco — Investor Presentation (January 2024)
35 slides from Wesbanco's investor presentation, Jan 31, 2024
Slide 1: Investor Presentation (Q1 2024)
Investor Presentation (Q1 2024) (WSBC financials as of the three months ended 31 December 2023) John Iannone Senior Vice President, Investor Relations 304-905-7021
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures Forward-looking statements in this report relating to WesBanco’s plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform A
Slide 3: Diversified business model with strong market presence
Strong and balanced market presence across diverse geographies that supports disciplined organic growth Granular core deposit funding base supports robust commercial and consumer business model Diversified revenue streams built upon unique long-term advantages Distinct long-term growth strategies bu
Slide 4: Investment Rationale
Balanced loan and deposit distribution across contiguous eight state footprint, with complementary loan production office strategy Full suite of commercial and consumer banking capabilities, complemented by a $5.4B wealth management business with a 100+ year track-record of success Robust legacy dep
Slide 5: Strategies for Long-Term Success
Strategies for Long-Term Success
Slide 6: Long-Term Growth Strategies
Organic growth-oriented business model Long-Term Growth Strategies Focus on Delivering Positive Operating Leverage Strong Legacy of Credit, Capital, and Risk Management Diversified Loan Portfolio Built upon a Relationship Focused Model Distinct Revenue Capabilities, Led by 100+ Year Wealth Managemen
Slide 7: Diversified Loan Portfolio
Focus on strategic diversification, growth, and credit quality Balance disciplined loan origination with prudent underwriting standards Focus on relationship lending, especially for C&I Key offerings include loan swaps, treasury management, foreign exchange, cyber security, and lockbox services Stro
Slide 8: Wealth Management: Trust & Investments
Trust & Investments $5.4B of trust and mutual fund assets under management 6,700+ relationships Legacy market private wealth management growth opportunities Expansion opportunities in the Mid-Atlantic market WesMark Funds – six proprietary funds across equities, bonds, and tactical assets Strong cap
Slide 9: Digital banking utilization
Digital banking utilization ~72% of retail customers utilize online digital banking services ~4.7 million web and mobile logins per month Mobile ~50% of total, with an average of 17 monthly logins per customer >185,000 mobile wallet transactions, ~30,000 mobile deposits, and >30,000 Zelle® payments
Slide 10: Differentiated and peer-leading deposit profile
Differentiated and peer-leading deposit profile Note: quarterly financial data; peer bank group includes all U.S. banks with total assets of $10B to $25B from S&P Capital IQ (as of 1/30/2024) and represent simple averages; total deposits funding cost includes non-interest bearing deposits Core Depos
Slide 11: Franchise-Enhancing Expansion: LPO Strategy and Targeted Acquisitions
Targeted acquisitions in existing markets and new higher-growth metro areas, as well as a complementary loan production office (“LPO”) strategy Long-term focus on appropriate capital management to enhance shareholder value Strong capital and liquidity, along with strong regulatory compliance process
Slide 12: Delivering Positive Operating Leverage
(1) Track-record of expense control with on-going enhancement efforts Note: financial data as of 12/31; current data as of 12/31/2023 (operating leverage YTD); balance sheet data as of period ends (1) Non-GAAP measure – please see reconciliation in appendix; non-interest expense does not exclude res
Slide 13: Strong legacy of credit and risk management and regulatory compliance
Strong legacy of credit and risk management and regulatory compliance Based upon conservative underwriting standards and approval processes supported by centralized back-office and loan funding functions Mature enterprise risk management program headed by Chief Risk Officer addressing key risks in a
Slide 14: Commitment to Sustainability
Ensuring a strong financial institution for all of our stakeholders Note: data as of 12/31/2022 except Board diversity (as of 4/19/2023) and financial center reduction (as of 12/31/2022 and compared to 12/31/2018); “CRA” is Community Reinvestment Act; “key senior executive leadership” defined as the
Slide 15: Awards and recognition
Newsweek named WesBanco Bank one of America’s Best Regional Banks, based on soundness, profitability, and customer reviews WesBanco Bank was named, for the 5th year in a row, one of the World’s Best Banks in an independent ranking by Forbes, based 100% on customer satisfaction and consumer feedback
Slide 16: WesBanco Financial Overview
Ww . . . WesBanco Financial Overview ©2023 WesBanco Inc. | All rights reserved
Slide 17: Q4 2023 highlights
Deposits increased both year-over-year and sequentially, reflecting deposit gathering and retention efforts across retail and business customers Solid loan growth reflecting the strength of our markets and lending teams, including our loan production offices Non-interest income trends up 8% year-ove
Slide 18: Q4 2023 Total Portfolio Loans
+8.7% year-over-year and +2.9% (or +11.4% annualized) quarter-over-quarter Loan growth continues to demonstrate the strength of our markets and lending teams Loan production offices are contributing meaningfully to both commercial loan growth and the loan pipeline Q4 2023 loan yields above 8% C&I lo
Slide 19: Net interest margin of 3.02%
Net interest margin of 3.02%, down just 1bp quarter-over-quarter Q4 2023 net interest margin of 3.02% reflects higher funding costs from increasing deposit costs and continued remix from non-interest bearing deposits into higher tier money market and certificate of deposit accounts, partially offset
Slide 20: Q4 2023 Non-Interest Income
Non-interest income increased 8% year-over-year reflecting the strength in new commercial swap fees and organic growth New swap fee and valuation income includes $2.2 million in new swap fees, up $0.5 million year-over-year Negative fair market value adjustments totaled $2.5 million, as compared to
Slide 21: Q4 2023 Non-Interest Expense
Appropriate growth investments; focused on expense management Q4 2023 Non-Interest Expense Salaries and wages declined sequentially, as anticipated, reflecting efficiency improvements in the residential mortgage staffing model Year-over-year increase due to annual merit and new revenue-producing hir
Slide 22: Comparable operating measures to peer bank group
Comparable operating measures to peer bank group Note: historical data as of 12/31 YTD; current data as of 12/31/2023 YTD; peer bank group includes all U.S. banks with total assets of $10B to $25B from S&P Capital IQ (as of 1/30/2024 and represent simple averages; NIM (fully taxable-equivalent (FTE)
Slide 23: Favorable asset quality measures compared to peer bank group
Favorable asset quality measures compared to peer bank group Note: financial data as of quarter ending for dates specified; peer bank group includes all U.S. banks with total assets of $10B to $25B from S&P Capital IQ (as of 1/30/2024) and represent simple averages except criticized & classified loa
Slide 24: Returning value to shareholders
Returning value to shareholders Note: dividend through November 2023 declaration announcement; WSBC dividend yield based upon 1/29/2024 closing stock price of $31.22; peer bank group includes all U.S. banks with total assets of $10B to $25B (as of most recent period) from S&P Capital IQ (as of 1/30/
Slide 25: WesBanco Appendix
Ww . WesBanco Appendix ©2023 WesBanco Inc. | All rights reserved
Slide 26: Q4 2023 Key Metrics
Net interest margin of 3.02%, stable to the third quarter Note: PTPP = pre-tax, pre-provision Non-GAAP measure – please see reconciliation in appendix Excludes restructuring and merger-related expenses Q4 2023 Key Metrics
Slide 27: Q4 2023 Total Deposits
Strong team efforts drive ~1% deposit growth quarter-over-quarter Note: “uninsured deposits” are approximated; “collateralized municipal deposits” are collateralized by securities Total deposits, as of December 31, 2023, were $13.2 billion, up both year-over-year and quarter-over-quarter, reflecting
Slide 28: Q4 2023 Total Securities
Tangible common equity to tangible assets ratio improved 34 basis points sequentially to 7.62% Weighted average yield 2.48% vs. 2.32% last year Weighted average duration 5.2 Total unrealized securities losses (after-tax): Available for Sale (“AFS”) = $233MM Held to Maturity (“HTM”) = $99MM Note: HTM
Slide 29: Q4 2023 Current Expected Credit Loss (CECL)
Allowance coverage ratio of 1.12% Note: ACL at 12/31/2023 excludes off-balance sheet credit exposures of $8.6 million The increase in the allowance was primarily driven by the dollar change in criticized and classified loan balance, prepayment assumptions, and loan growth During Q4 2023, recorded a
Slide 30: Non-Interest Expense to Total Assets and Efficiency Ratio Reconciliation
Non-Interest Expense to Total Assets and Efficiency Ratio Reconciliation Note: “efficiency ratio” is non-interest expense excluding restructuring and merger-related expense divided by total income; FTE represents fully taxable equivalent; Old Line Bancshares merger closed November 2019; Farmers Capi
Slide 31: Pre-Tax, Pre-Provision Income (PTPP) and Ratios Reconciliation
Pre-Tax, Pre-Provision Income (PTPP) and Ratios Reconciliation
Slide 32: Net Income and Diluted EPS Reconciliation
Net Income and Diluted Earnings per Share (EPS) Reconciliation
Slide 33: Tangible Book Value per Share Reconciliation
Tangible Book Value per Share Reconciliation
Slide 34: Return on Average Assets Reconciliation
Return on Average Assets (1) Ratios are annualized by utilizing the actual numbers of days in the quarter versus the year Note: Current Expected Credit Losses (“CECL”) accounting standard adopted January 1, 2020 by WSBC; Old Line Bancshares merger closed November 2019 Reconciliation
Slide 35: Return on Average Tangible Equity Reconciliation
Return on Average Tangible Equity Reconciliation (1) Amortization of intangibles tax effected at 21% for all prior periods (2) Ratios are annualized by utilizing the actual numbers of days in the quarter versus the year Note: Current Expected Credit Losses (“CECL”) accounting standard adopted Januar