Wesbanco, Inc. · NASDAQ:WSBC
Wesbanco — Q1 2023 Earnings Presentation
20 slides from Wesbanco's earnings presentation, Apr 24, 2023
Slide 1: First Quarter 2023 Earnings Call Presentation
24 April 2023 First Quarter 2023 Earnings Call Presentation
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: Q1 2023 Financial and Operational Highlights
Q1 2023 Financial and Operational Highlights Note: financial and operational highlights during the quarter ended March 31, 2023 (1) Non-GAAP measure – please see reconciliation in appendix; excludes restructuring and merger-related expenses Solid pre-tax, pre-provision income and net income (excludi
Slide 4: Key Metrics
Q1 2023 Key Metrics Note: PTPP = pre-tax, pre-provision Non-GAAP measure – please see reconciliation in appendix Excludes restructuring and merger-related expenses
Slide 5: Total Portfolio Loans ($MM)
Q1 2023 Total Portfolio Loans ($MM) Loan growth continues to demonstrate the successful execution of our expansion into higher-growth markets and ability to hire top-tier commercial and mortgage loan officers across our footprint Total loan growth was broad-based across our markets +11.9% year-over-
Slide 6: Q1 2023 Investment Office Loan Portfolio
~310 loans with $465 million total loan balance Average loan size = ~$1.5 million 23% of risk-based capital $495 million total commitments >96% of loan balances in “pass” risk grade classifications Average loan-to-value = ~62% Average debt service coverage ratio = ~1.8x Q1 2023 Investment Office Loa
Slide 7: Total Deposits ($MM)
Q1 2023 Total Deposits ($MM) Total deposits, as of March 31, 2023, were $12.9 billion, down 2.0%, when compared to December 31, 2022, reflecting the impact of rate and inflationary pressures and rising costs across the economy Further, the Federal Reserve’s tightening actions to control inflation ha
Slide 8: Total Securities ($MM)
Q1 2023 Total Securities ($MM) Weighted average yield 2.49% vs. 1.96% last year Weighted average duration 5.4 years Total unrealized securities losses (after-tax): AFS = $234M HTM = $101M Note: not recognized in accumulated other comprehensive income Note: weighted average yields have been calculate
Slide 9: Net Interest Margin (NIM)
Q1 2023 Net Interest Margin (NIM) Q1 2023 net interest margin of 3.36% increased 41 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 13 basis points sequentially due
Slide 10: Non-Interest Income
Q1 2023 Non-Interest Income Q1 trust fees are seasonally higher due to tax preparation fees Electronic banking fees decreased year-over-year due to a $0.7 million credit received during the prior year period from our service provider Bank-owned life insurance decreased year-over-year due to $1.9 mil
Slide 11: Non-Interest Expense
Q1 2023 Non-Interest Expense Salaries and wages increased year-over-year due to higher salary expense from higher staffing levels (primarily commercial and residential lenders) and merit increases Employee benefits increased year-over-year due to due higher staffing levels, increased pension expense
Slide 12: Strong Legacy of Credit Quality
Non-Performing Assets as % of Total Assets Net Charge-Offs as % of Average Loans (Annualized) Allowance for Credit Losses as % of Total Loans Criticized & Classified Loans as % of Total Loans Favorable asset quality measures compared to all U.S. banks with total assets from $10B to $25B Strong Legac
Slide 13: Q1 2023 Current Expected Credit Loss (CECL)
The increase in the allowance was primarily driven by changes in prepayment assumptions and current loan growth, more than offsetting improvements in the pandemic-related qualitative adjustments During Q1 2023, recorded a provision for credit losses of $3.6 million Allowance coverage ratio of 1.09%
Slide 14: Strong Capital Position
Strong regulatory capital ratios significantly above both regulatory requirements and well-capitalized levels, with tangible equity levels above peer averages ~1.2 million shares continue to remain for repurchase (as of 3/31/2023)(1) Tangible Equity to Tangible Assets (2) Tier 1 Risk-Based Capital R
Slide 15: Appendix
wy W WesBanco Appendix
Slide 16: Reconciliation: Pre-Tax, Pre-Provision Income (PTPP) and Ratios
Reconciliation: Pre-Tax, Pre-Provision Income (PTPP) and Ratios
Slide 17: Reconciliation: Net Income, EPS (Diluted), Tangible Book Value per Share
Reconciliation: Net Income, EPS (Diluted), Tangible Book Value per Share
Slide 18: Reconciliation: Efficiency Ratio
Reconciliation: Efficiency Ratio Note: “efficiency ratio” is non-interest expense excluding restructuring and merger-related expense divided by total income; FTE represents fully taxable equivalent
Slide 19: Reconciliation: Return on Average Assets and Tangible Equity to Tangible Assets
Reconciliation: Return on Average Assets and Tangible Equity to Tangible Assets (1) three-, six-, and nine-month (as applicable) figures are annualized Note: Old Line Bancshares merger closed November 2019; Farmers Capital Bank Corporation merger closed August 2018; First Sentry Bancshares merger cl
Slide 20: Reconciliation: Return on Average Tangible Equity
Reconciliation: Return on Average Tangible Equity (1) three-, six-, and nine-month (as applicable) figures are annualized