Wesbanco, Inc. · NASDAQ:WSBC
Wesbanco — Q2 2023 Earnings Presentation
21 slides from Wesbanco's earnings presentation, Jul 25, 2023
Slide 1: Second Quarter 2023 Earnings Call Presentation
Second Quarter 2023 Earnings Call Presentation 25 July 2023
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: Q2 2023 Financial and Operational Highlights
Solid pre-tax, pre-provision income and net income (excluding restructuring & merger-related expenses) Strong, broad-based year-over-year and sequential quarter total loan growth Maintained deposit levels consistent to Q1 2023 through gathering efforts despite industry headwinds Key credit quality m
Slide 4: Q2 2023 Key Metrics
13% return on average tangible equity, up 63bp year-over-year Note: PTPP = pre-tax, pre-provision Non-GAAP measure – please see reconciliation in appendix Excludes restructuring and merger-related expenses Q2 2023 Key Metrics
Slide 5: Q2 2023 Total Portfolio Loans
Loan growth continues to demonstrate the successful execution of our expansion into higher-growth markets, including our loan production office initiative, and ability to hire top-tier lending officers across our footprint +9.0% year-over-year and +2.2% (or +8.9% annualized) quarter-over-quarter C&I
Slide 6: Total deposits stable, reflecting deposit gathering efforts
Total deposits stable, reflecting deposit gathering efforts Note: “uninsured deposits” are approximated; “collateralized municipal deposits” are collateralized by securities; “exclusions” represent accrued interest payable Total deposits, as of June 30, 2023, were $12.9 billion, flat to the level re
Slide 7: Q2 2023 Total Securities
Weighted average yield 2.46% vs. 2.02% last year Weighted average duration 5.3% Total unrealized securities losses (after-tax): Available for Sale (“AFS”) = $264M Held to Maturity (“HTM”) = $115M Note: HTM losses not recognized in accumulated other comprehensive income Securities 20.5% of assets, do
Slide 8: Q2 2023 Net Interest Margin (NIM)
Net interest margin of 3.18%, up 15 basis points year-over-year Q2 2023 net interest margin of 3.18% increased 15 basis points year-over-year, reflecting increases in the federal fund rate since March 2022 and deployment of excess cash into higher-yielding loans The net interest margin decreased 18
Slide 9: Q2 2023 Non-Interest Income
Commercial loan swap income, which is recorded with other income, reflects $2.4 million in new swap fees, up $1.6 million year-over-year Fair market value adjustments totaled $0.2 million, as compared to $1.1 million last year Bank-owned life insurance increased during Q2 2023 due to additional high
Slide 10: Q2 2023 Non-Interest Expense
Disciplined expense management; appropriate growth investments Q2 2023 Non-Interest Expense Salaries and wages increased due to higher salary expense from higher staffing levels, primarily revenue-producing positions, and merit increases Employee benefits increased year-over-year due to a $1.2 milli
Slide 11: Strong Legacy of Credit Quality
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; peer data from S&P Global Market Intelligence (as of 7/14/2023) and represent simple averages except
Slide 12: Q2 2023 Current Expected Credit Loss (CECL)
Allowance coverage ratio of 1.1% Note: ACL at 6/30/2023 excludes off-balance sheet credit exposures of $10.1 million The increase in the allowance was primarily driven by loan growth and adjustments in regional macroeconomic factors and loan concentrations During Q2 2023, recorded a provision for cr
Slide 13: Strong Capital Position
Capital ratios above both regulatory and well-capitalized levels Note: financial data as of quarter ending 12/31; current year data as of 6/30/2023; WSBC adopted Current Expected Credit Losses (“CECL”) CECL accounting standard 1/1/2020 Under the existing share repurchase authorization that was appro
Slide 14: WesBanco Appendix
Ww . WesBanco Appendix ©2023 WesBanco Inc. | All rights reserved
Slide 15: Pre-Tax, Pre-Provision Income (PTPP) and Ratios Reconciliation
Pre-Tax, Pre-Provision Income (PTPP) and Ratios Reconciliation
Slide 16: Net Income and Diluted EPS Reconciliation
Net Income and Diluted Earnings per Share (EPS) Reconciliation
Slide 17: Tangible Book Value per Share Reconciliation
Tangible Book Value per Share Reconciliation
Slide 18: Efficiency Ratio Reconciliation
Efficiency Ratio Reconciliation
Slide 19: Return on Average Assets Reconciliation
Return on Average Assets (1) three-, six-, and nine-month (as applicable) figures are annualized Reconciliation
Slide 20: Return on Average Tangible Equity Reconciliation
Return on Average Tangible Equity (1) three-, six-, and nine-month (as applicable) figures are annualized Reconciliation
Slide 21: Tangible Equity to Tangible Assets
Tangible Equity to Tangible Assets Note: Old Line Bancshares merger closed November 2019; Farmers Capital Bank Corporation merger closed August 2018; First Sentry Bancshares merger closed April 2018; Your Community Bankshares merger closed September 2016; ESB Financial merger closed February 2015; F