Wesbanco, Inc. · NASDAQ:WSBC
Wesbanco — Q2 2024 Earnings Presentation
21 slides from Wesbanco's earnings presentation, Jul 26, 2024
Slide 1: Second Quarter 2024 Earnings Call Presentation
Second Quarter 2024 Earnings Call Presentation 26 July 2024
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 2024 Financial and Operational Highlights
Q2 2024 Financial and Operational Highlights 8 consecutive quarters of strong YoY loan growth averaging 9% • Continued strong loan growth both year- Net Income Available to Common over-year and quarter-over-quarter Shareholders and Diluted EPS(1) Total loans up $1.1 billion year-over-year $29.4 mi
Slide 4: Q2 2024 Key Metrics
Q2 2024 Key Metrics Quarter Ending H / (L) H / (L) Year-to-Date H / (L) 06/30/24 06/30/23 03/31/24 06/30/24 06/30/23 Return on Average Assets (1)(2) 0.66% (32bp) (9bp) 0.71% (29bp) PTPP Return on Average Assets (1)(2) 1.11% (21bp) 3bp 1.09% (28bp) Return on Average Equity (1)(2) 4.65% (217bp) (59bp)
Slide 5: Total Portfolio Loans
Q2 2024 Total Portfolio Loans Total loans up $1.1 billion YoY and $0.4 billion QoQ • +10.1% year-over-year and +3.2% (or ($MM) +12.9% annualized) quarter-over-quarter Loan growth continues to demonstrate the strength of our markets and lending teams Comm'l Avg Payoff Yield Comm'l Avg New Yield L
Slide 6: Total Deposits
Q2 2024 Total Deposits Solid year-over-year deposit growth of 4.4% ($MM) • Deposits of $13.4 billion were up 4.4% year-over-year, reflecting deposit gathering and retention efforts by our retail and commercial teams • Distribution: consumer ~54% and business ~32% (note: public funds, which are separ
Slide 7: Total Securities
Q2 2024 Total Securities Securities 18.2% of assets, down 237 basis points year-over-year Equities • Tangible common equity to tangible assets ($MM) 0% ratio improved 17 basis points year-over- 95% States & Political Subdivisions year to 7.52% Held-to- Maturity 5% Other 36% • Weighted average yield
Slide 8: Net Interest Margin (NIM)
Q2 2024 Net Interest Margin (NIM) NIM continues to reflect the higher rate environment and deposit remix • Q2 2024 net interest margin of 2.95% reflects higher funding costs from the remix of non-interest bearing deposits into higher tier money market and certificate of deposit accounts, offset by l
Slide 9: Non-Interest Income
Q2 2024 Non-Interest Income Wealth management and new product/service fees driving growth Quarter Ending % H / (L) % H / (L) • Non-interest income decreased 1.5% year-over-year primarily due to lower net ($000s) 06/30/24 06/30/23 03/31/24 swap fee and valuation income, as well as higher net gains on
Slide 10: Non-Interest Expense
Q2 2024 Non-Interest Expense Committed to discretionary expense management • Non-interest expense increased year- Quarter Ending % H / (L) % H / (L) over-year due to increases in equipment ($000s) 06/30/24 06/30/23 03/31/24 and software expenses and other operating expenses Salaries and wages $43,99
Slide 11: Strong Legacy of Credit Quality
Strong Legacy of Credit Quality Favorable asset quality measures compared to peer bank group Criticized & Classified Loans as % of Total Loans Non-Performing Assets as % of Total Assets 0.36% 3.21% 0.33% 3.02% 0.31% 2.81% 0.28% 2.65% 1.68% 2.22% 2.22% 2.30% 2.15% 0.19% 0.18% 0.16% 0.19% 0.20% 6/30/2
Slide 12: Current Expected Credit Loss (CECL)
Q2 2024 Current Expected Credit Loss (CECL) Allowance coverage ratio of 1.11% • The increase in the allowance was driven by strong loan growth, higher unemployment assumptions, and a reserve for an individual C&I loan • During Q2 2024, recorded a provision for credit losses of $10.5 million, as comp
Slide 13: Strong Capital Position
Strong Capital Position Capital ratios above both regulatory and well-capitalized levels • Strong regulatory capital ratios significantly above both regulatory requirements and well- capitalized levels, with favorable tangible equity levels compared to peers • ~1.0 million shares continue to remain
Slide 14: Appendix
Appendix ©2024 WesBanco Inc. | All rights reserved
Slide 15: Pre-Tax, Pre-Provision Income (PTPP) and Ratios
Reconciliation Pre-Tax, Pre-Provision Income (PTPP) and Ratios Quarter Ending Year-to-Date ($000s) 06/30/24 03/31/24 06/30/23 06/30/24 06/30/23 Income before Provision for Income Taxes $35,015 $43,390 $53,943 $78,404 $106,226 Provision for Credit Losses 10,541 4,014 3,028 14,555 6,605 Pre-Tax, Pre-P
Slide 16: Net Income and Diluted Earnings per Share (EPS)
Reconciliation Net Income and Diluted Earnings per Share (EPS) Quarter Ending Year-to-Date ($000s, except earnings per share) 06/30/24 03/31/24 06/30/23 06/30/24 06/30/23 Net Income Available to Common Shareholders $26,385 $33,162 $42,349 $59,546 $82,158 Restructuring and Merger-Related Expense (net
Slide 17: Tangible Book Value per Share
Reconciliation Tangible Book Value per Share Quarter Ending Year-to-Date ($000s, except shares and per share data) 06/30/24 03/31/24 06/30/23 06/30/24 06/30/23 Total Shareholders' Equity $2,544,279 $2,538,362 $2,464,998 $2,544,279 $2,464,998 Goodwill & Other Intangible Assets (net of deferred tax li
Slide 18: Efficiency Ratio
Reconciliation Efficiency Ratio Quarter Ending Year-to-Date ($000s) 06/30/24 03/31/24 06/30/23 06/30/24 06/30/23 Non-Interest Expense $102,392 $97,191 $96,437 $199,585 $192,560 Restructuring & Merger-Related Expense (3,777) 0 (35) (3,777) (3,188) Non-Interest Expense (excluding restructuring and mer
Slide 19: Return on Average Assets
Reconciliation Return on Average Assets Quarter Ending Year-to-Date ($000s) 06/30/24 03/31/24 06/30/23 06/30/24 06/30/23 Net Income Available to Common Shareholders $26,385 $33,162 $42,349 $59,546 $82,158 Restructuring and Merger-Related Expenses (net of tax) 2,984 0 28 2,984 2,519 Net Income Availa
Slide 20: Return on Average Tangible Equity
Reconciliation Return on Average Tangible Equity Quarter Ending Year-to-Date ($000s) 06/30/24 03/31/24 06/30/23 06/30/24 06/30/23 Net Income Available to Common Shareholders $26,385 $33,162 $42,349 $59,546 $82,158 Amortization of Intangibles (tax effected at 21%) 1,637 1,653 1,803 3,290 3,621 Net In
Slide 21: Tangible Equity to Tangible Assets
Reconciliation Tangible Equity to Tangible Assets Period Ending ($000s) 12/31/07 12/31/08 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 06/30/24 Total Shareholders' Equity $580,319 $659,371 $588,716 $606,863 $63