Wesbanco, Inc. · NASDAQ:WSBC
Wesbanco — Investor Presentation (February 2025)
51 slides from Wesbanco's investor presentation, Feb 10, 2025
Slide 1: Investor Presentation (Q1 2025)
Investor Presentation (Q1 2025) (WSBC financials as of the three months ended December 31, 2024) John Iannone Senior Vice President, Investor Relations 304-905-7021 Note: update footnote copyright year annually
Slide 2: 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
Slide 3: Additional Information about the Acquisition and Where to Find It
In connection with the proposed Merger, the Company filed with the Securities and Exchange Commission (the “SEC”) a Registration Statement on Form S-4 which includes a joint proxy statement of Premier Financial and the Company and a prospectus of the Company with respect to shares of the Company’s c
Slide 4: 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 5: 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 wealth management business with a 100+ year track-record of success managing assets of $6.0
Slide 6: Strategies for Long-Term Success
Strategies for Long-Term Success
Slide 7: 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 8: Diversified loan portfolio built on relationship focus
Focus on strategic diversification and growth built upon strong credit quality Balance disciplined loan origination with prudent underwriting standards Focus on relationship lending Key offerings include loan swaps, treasury management, foreign exchange, cyber security, and lockbox services Strong r
Slide 9: Wealth management business
Securities Brokerage $1.9B in account value 11,550+ accounts Securities investment sales Investment advisory services Licensed banker and regional player/coach programs Expansion opportunities in KY, IN, and Mid-Atlantic markets, as well as external business development opportunities Trust & Investm
Slide 10: Treasury Management capabilities
New capabilities with long-term growth opportunities Treasury Management Focus on building comprehensive business customer relationships by providing individualized services to improve cash flow management, increase earning power, and strengthen fraud protection for clients Key Treasury Management s
Slide 11: Digital banking utilization
Digital banking utilization ~75% of retail customers utilize online digital banking services ~5.0 million web and mobile logins per month Mobile ~50% of total, with an average of 16 monthly logins per customer ~290,000 mobile wallet transactions, ~45,000 Zelle® payments, and ~11,000 mobile deposits
Slide 12: 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 2/3/2025) and represent simple averages; total deposits funding cost includes non-interest bearing deposits Core Deposi
Slide 13: Franchise-Enhancing Expansion
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 14: Delivering Positive Operating Leverage
(1) Track-record of expense control with on-going enhancement efforts Note: financial data as of 12/31; current year data as of 12/31/2024 year-to-date; balance sheet data as of period ends (1) Non-GAAP measure – please see reconciliation in appendix; non-interest expense does not exclude restructur
Slide 15: Strong legacy of credit and risk management
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 16: Commitment to Sustainability
Ensuring a strong financial institution for all of our stakeholders Note: data as of 12/31/2023 except Board diversity (as of 4/17/2024) and financial center reduction (as of 12/31/2023 and compared to 12/31/2018); “CRA” is Community Reinvestment Act; “key senior executive leadership” defined as the
Slide 17: Awards and recognition
WesBanco was one of just 300 public companies being named to Forbes’ inaugural list of the Most Trusted Companies in America Newsweek again named WesBanco Bank one of America’s Best Regional Banks, based on soundness, profitability, and positively impacting their communities Newsweek named WesBanco
Slide 18: WesBanco Financial Overview
Ww . . . WesBanco Financial Overview ©2025 WesBanco, Inc. | All rights reservec d
Slide 19: Q4 2024 highlights
Continued strong loan growth both year-over-year and quarter-over-quarter, driven by commercial lending Total loans have grown at a compound annual rate of 9.1% since year-end 2021 Deposit growth fully funded loan growth both year-over-year and quarter-over-quarter Deposit growth, excluding CDs, inc
Slide 20: Total portfolio loan growth
+8.7% year-over-year and +1.6% (or +6.6% annualized) quarter-over-quarter Commercial loan growth was +10.7% year-over-year and +8.5% quarter-over-quarter annualized Loan growth continues to be driven by the strong performance by our banking teams across our markets Loan production offices continue t
Slide 21: Strong deposit growth fully funded loan growth
Strong deposit growth fully funded strong loan growth Note: “uninsured deposits” are approximated; “collateralized municipal deposits” are collateralized by securities Deposits of $14.1 billion were up 7.3% year-over-year and 8.6% annualized quarter-over-quarter, reflecting the success of our summer
Slide 22: Net interest margin
NIM benefiting from loan growth and the paydown of borrowings Q4 2024 NIM of 3.03 improved 8 basis points from the third quarter and 1 basis point from the prior year period, through a combination of higher loan and securities yields and lower funding costs Loan yields increased 19 basis points year
Slide 23: Non-interest income
Non-interest income increased year-over-year reflecting growth in net swap fee and valuation income, trust fees, and service charges on deposits, which include new products and services and treasury management fees Gross swap fees were $1.3 million, compared to $2.2 million in the prior year Fair ma
Slide 24: Non-interest expense
Focused on efficiency gains to support positive operating leverage Q4 2024 Non-Interest Expense Non-interest expense, excluding merger and restructuring charges, increased just 1% year-over-year, reflecting company-wide efficiency efforts The year-over-year increase was primarily due to equipment an
Slide 25: 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 12/31/2024 YTD; peer bank group includes all U.S. banks with total assets of $10B to $25B from S&P Capital IQ (as of 2/3/2025 and represent simple averages; NIM (fully taxable-equivalent (FTE)
Slide 26: Favorable asset quality measures versus peers
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 2/3/2025) and represent simple averages except criticized & classified loan
Slide 27: Returning value to shareholders
Returning value to shareholders Note: dividend through November 2024 declaration announcement; WSBC dividend yield based upon 1/31/2025 closing stock price of $35.04; 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 2/3/2
Slide 28: WesBanco Appendix
Ww ; WesBanco Appendix ©2025 WesBanco, Inc. | All rights reservec d
Slide 29: Key metrics
Key metrics Note: PTPP = pre-tax, pre-provision Non-GAAP measure – please see reconciliation in appendix Excludes restructuring and merger-related expenses Q4 2024 Financial and Operational Highlights
Slide 30: Q4 2024 Total Securities
Tangible common equity to tangible assets ratio improved 108 basis points year-over-year to 8.70% Weighted average yield 2.63% vs. 2.48% last year Weighted average duration 4.7 Total unrealized securities losses (after-tax): Available for Sale (“AFS”) = $224MM Held to Maturity (“HTM”) = $111MM Note:
Slide 31: Allowance coverage ratio of 1.10%
Allowance coverage ratio of 1.10% Note: ACL at 12/31/2024 excludes off-balance sheet credit exposures of $6.1 million The allowance for credit losses was $138.8 million at December 31, 2024, which provided a coverage ratio of 1.10% Excluded from the allowance for credit losses and related coverage r
Slide 32: Non-Interest Expense to Total Assets and Efficiency Ratio Reconciliation
Non-Interest Expense to Total Assets and Efficiency Ratio Reconciliation Note: “non-interest expense to total assets” are annualized by utilizing the actual numbers of days in the quarter versus the year; “efficiency ratio” is non-interest expense excluding restructuring and merger-related expense d
Slide 33: Pre-Tax, Pre-Provision Income (PTPP) and Ratios Reconciliation
Pre-Tax, Pre-Provision Income (PTPP) and Ratios Reconciliation
Slide 34: Net Income and Diluted EPS Reconciliation
Net Income and Diluted Earnings per Share (EPS) Reconciliation
Slide 35: Tangible Book Value per Share Reconciliation
Tangible Book Value per Share Reconciliation
Slide 36: 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 37: 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
Slide 38: Return on Average Tangible Common Equity Reconciliation
Return on Average Tangible Common 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
Slide 39: Appendix for Proposed Acquisition of Premier Financial Corp.
Appendix for Proposed Acquisition of Premier Financial Corp. NOTE: slides in this section are directly from the presentation filed in conjunction with the acquisition announcement on July 26, 2024 – for additional information, please see the associated Form 8-K filing at https://investor.wesbanco.co
Slide 40: Merger rationale
Increased Scale With ~$27B in assets, the combined organization will benefit from significant economies of scale Complementary geographic footprints in familiar markets Rise to #8 from #15 in Ohio deposit market share Boosted Performance 2025 EPS Accretion of 40%+ driven by cost synergies and margin
Slide 41: Pro forma company profile
Pro forma company profile (1) TCE shown net of deferred tax liability; includes net proceeds from capital raise (2) Excludes one time deal charges, Non-PCD CECL Day-2 double count, and assumes fully phased in cost saves (3) Deposit market share data as of June 30, 2023; excludes National Consumer Co
Slide 42: Structure and consideration
Structure & Consideration 100% stock consideration Fixed exchange ratio – 0.80 WSBC shares to be issued for each PFC share Pro forma ownership: 62% WSBC, 30% PFC, 8% new shareholders Transaction Value Deal value of $959 million, or $26.66 per PFC share(1) Pricing metrics include: 12.0x DV/2025E EPS,
Slide 43: Successful common equity raise
Successfully raised $200 million of common equity prior to the announcement of the Premier Financial Corp. acquisition in order to support the pro-forma bank’s balance sheet and regulatory ratios Equity raised from 10 institutional investors, with a blend of existing and new shareholders Anchor inve
Slide 44: Key transaction assumptions
Earnings Projections for WSBC and PFC based on consensus estimates through 2025; 5% growth thereafter Cost Savings ~26% of PFC’s NIE expense base ($41.4 million on a fully phased basis) 75% to be realized in 2025 and 100% to be realized thereafter Merger Expenses $71.6 million of pre-tax, non-capita
Slide 45: Impact summary
Impact summary Acquisition of Premier Financial Corp. (1) Excludes one time deal charges, Non-PCD CECL Day-2 double count, and assumes fully phased in cost saves. (2) Rate marks include interest rate mark on loans and write-down of trust preferred securities. (3) Excludes all impacts from CECL, incl
Slide 46: Enhanced profitability and capital generation
Enhanced profitability and capital generation Acquisition of Premier Financial Corp. Note: Peers defined as Mid-Atlantic, Midwest and Southeast major exchange-traded banks and thrifts with most recent quarter total assets between $20 billion and $40 billion, excluding merger targets, mutuals, and me
Slide 47: Capital adequacy
WesBanco 06/30/2024 Premier 06/30/2024 Pro- Forma(1) Tier 1 Leverage Ratio (Consolidated) 9.7% 10.3% 8.6% Tier 1 Common Ratio (Consolidated) 10.6% 11.9% 9.6% Tier 1 Risk-Based Capital (Consolidated) 11.6% 12.4% 10.3% Total Risk-Based Capital (Consolidated) 14.4% 14.3% 13.2% Tier 1 Leverage Ratio (Ba
Slide 48: Capital accretion post transaction
Capital accretion post transaction Appendix CET1 Capital Ratio (%) Leverage Ratio (%) Total Risk-Based Capital (%) Tier 1 Risk-Based Capital Ratio (%) Note: Pro-forma capital ratios inclusive of MTM adjustments and ~$191mm of net proceeds from capital raise down-streamed to the bank Consolidated Ban
Slide 49: Illustrative pro forma earnings accretion reconciliation
Illustrative pro forma earnings accretion reconciliation Illustrative Fully Phased-In EPS Accretion Appendix Excludes one time deal charges, Non-PCD CECL Day-2 double count, and assumes fully phased in cost saves. (2) FMV adjustments include accretion of PFC’s AOCI at closing, net loan mark accretio
Slide 50: Tangible book value dilution reconciliation
Tangible book value dilution reconciliation Appendix Estimated Tangible Book Value Dilution Detail Calculation of Estimated Intangibles Created Net proceeds based on a $200mm capital raise (gross) in 2024Q3, utilizing an issuance price of $27.50/share Restructuring cost includes the RSU acceleration
Slide 51: Non-GAAP reconciliations
Non-GAAP reconciliations Appendix WSBC Tangible Book Value PFC Tangible Book Value PFC Tangible Common Equity / Tangible Assets PFC Tangible Book Value per Share Note: Based on June 30, 2024 financials; DTL represents 21% of other intangibles (excluding goodwill) balance