Wesbanco, Inc. · NASDAQ:WSBC
Wesbanco — Q3 2023 Earnings Presentation
21 slides from Wesbanco's earnings presentation, Oct 25, 2023
Slide 1: Third Quarter 2023 Earnings Call Presentation
Third Quarter 2023 Earnings Call Presentation 25 October 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: Q3 2023 Financial and Operational Highlights
Period-end and average total deposits increased sequentially, reflecting deposit gathering and retention efforts across retail and business customers Solid loan growth reflecting the strength of our markets and lending teams, as well as our loan production offices, led by Chattanooga Non-interest in
Slide 4: Q3 2023 Key Metrics
12.39% return on average tangible equity year-to-date Note: PTPP = pre-tax, pre-provision Non-GAAP measure – please see reconciliation in appendix Excludes restructuring and merger-related expenses Q3 2023 Key Metrics
Slide 5: Q3 2023 Total Portfolio Loans
Loan growth continues to demonstrate the successful execution of our expansion into higher-growth markets and ability to hire top-tier lending officers across our footprint Loan production offices, led by newest in Chattanooga, are contributing meaningfully to the commercial loan pipeline +10.1% yea
Slide 6: Strong team efforts drive 1.8% deposit growth quarter-over-quarter
Strong team efforts drive 1.8% deposit growth quarter-over-quarter Note: “uninsured deposits” are approximated; “collateralized municipal deposits” are collateralized by securities; “exclusions” represent accrued interest payable Total deposits, as of September 30, 2023, were $13.1 billion, consiste
Slide 7: Q3 2023 Total Securities
Weighted average yield 2.46% vs. 2.16% last year Weighted average duration 5.1 Total unrealized securities losses (after-tax): Available for Sale (“AFS”) = $298MM Held to Maturity (“HTM”) = $161MM Note: HTM losses not recognized in accumulated other comprehensive income Securities 19.7% of assets, d
Slide 8: Q3 2023 Net Interest Margin (NIM)
Net interest margin of 3.03%, reflects current rate environment Q3 2023 net interest margin of 3.03% reflects the 525 basis point increase in the federal fund rate since March 2022, partially offset by the deployment of excess cash into higher-yielding loans The net interest margin decreased 15 basi
Slide 9: Q3 2023 Non-Interest Income
Excluding a gain on sale in the prior year period, non-interest income would have increased 0.5% year-over-year, reflecting the strength in commercial swap fees Commercial loan swap income, which is now listed separately on the income statement, reflects $2.5 million in new swap fees, up $0.8 millio
Slide 10: Q3 2023 Non-Interest Expense
Disciplined expense management; appropriate growth investments Q3 2023 Non-Interest Expense Salaries and wages increased due to higher salary expense related to annual merit increases and new revenue-producing hires, mainly commercial lenders, during the past year, offset somewhat by efficiency impr
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 10/13/2023) and represent simple averages except
Slide 12: Q3 2023 Current Expected Credit Loss (CECL)
Allowance coverage ratio of 1.12% Note: ACL at 9/30/2023 excludes off-balance sheet credit exposures of $9.7 million The increase in the allowance was primarily driven by a $2.9 million specific reserve on one hospitality loan in addition to loan growth and adjustments in regional macroeconomic fact
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 9/30/2023; WSBC adopted Current Expected Credit Losses (“CECL”) CECL accounting standard 1/1/2020; peer bank group includes all U.S. banks with total assets of $1
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 Earnings per Share (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