Slide 1: Fourth Quarter 2023 Earnings Call Presentation
Fourth Quarter 2023 Earnings Call Presentation 23 January 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: Q4 2023 Financial and Operational Highlights
Deposits increased both year-over-year and sequentially, reflecting deposit gathering and retention efforts across retail and business customers Solid loan growth reflecting the strength of our markets and lending teams, including our loan production offices Non-interest income trends up 8% year-ove
Slide 4: Q4 2023 Key Metrics
Net interest margin of 3.02%, stable to the third quarter Note: PTPP = pre-tax, pre-provision Non-GAAP measure – please see reconciliation in appendix Excludes restructuring and merger-related expenses Q4 2023 Key Metrics
Slide 5: Q4 2023 Total Portfolio Loans
+8.7% year-over-year and +2.9% (or +11.4% annualized) quarter-over-quarter Loan growth continues to demonstrate the strength of our markets and lending teams Loan production offices are contributing meaningfully to both commercial loan growth and the loan pipeline Q4 2023 loan yields above 8% C&I lo
Slide 6: Q4 2023 Total Deposits
Strong team efforts drive ~1% deposit growth quarter-over-quarter Note: “uninsured deposits” are approximated; “collateralized municipal deposits” are collateralized by securities Total deposits, as of December 31, 2023, were $13.2 billion, up both year-over-year and quarter-over-quarter, reflecting
Slide 7: Q4 2023 Total Securities
Tangible common equity to tangible assets ratio improved 34 basis points sequentially to 7.62% Weighted average yield 2.48% vs. 2.32% last year Weighted average duration 5.2 Total unrealized securities losses (after-tax): Available for Sale (“AFS”) = $233MM Held to Maturity (“HTM”) = $99MM Note: HTM
Slide 8: Q4 2023 Net Interest Margin (NIM)
Net interest margin of 3.02%, down just 1bp quarter-over-quarter Q4 2023 net interest margin of 3.02% reflects higher funding costs from increasing deposit costs and continued remix from non-interest bearing deposits into higher tier money market and certificate of deposit accounts, partially offset
Slide 9: Q4 2023 Non-Interest Income
Non-interest income increased 8% year-over-year reflecting the strength in new commercial swap fees and organic growth New swap fee and valuation income includes $2.2 million in new swap fees, up $0.5 million year-over-year Negative fair market value adjustments totaled $2.5 million, as compared to
Slide 10: Q4 2023 Non-Interest Expense
Appropriate growth investments; focused on expense management Q4 2023 Non-Interest Expense Salaries and wages declined sequentially, as anticipated, reflecting efficiency improvements in the residential mortgage staffing model Year-over-year increase due to annual merit and new revenue-producing hir
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 from S&P Capital IQ (as of 1/10/2024) and represent simple averages except criticized & classified loa
Slide 12: Q4 2023 Current Expected Credit Loss (CECL)
Allowance coverage ratio of 1.12% Note: ACL at 12/31/2023 excludes off-balance sheet credit exposures of $8.6 million The increase in the allowance was primarily driven by the dollar change in criticized and classified loan balance, prepayment assumptions, and loan growth During Q4 2023, recorded a
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 12/31/2023; WSBC adopted Current Expected Credit Losses (“CECL”) CECL accounting standard 1/1/2020 Under the existing share repurchase authorization that was appr
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