Wesbanco, Inc. · NASDAQ:WSBC
Wesbanco — Investor Presentation (November 2023)
35 slides from Wesbanco's investor presentation, Nov 1, 2023
Slide 1: Investor Presentation (Q4 2023)
Investor Presentation (Q4 2023) (WSBC financials as of the three months ended 30 September 2023) John Iannone Senior Vice President, Investor Relations 304-905-7021
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: Evolving Regional Financial Services Institution
Strong market presence across legacy and major metropolitan markets Balanced loan and deposit distribution across diverse regional footprint Diversified revenue generation engines supported by unique long-term advantages Well-executed long-term growth strategies Note: loan and deposit data as of 9/3
Slide 4: Investment Rationale
Balanced loan and deposit distribution across footprint Diversified earnings streams built for long-term success, led by century-old, $5.0B trust and wealth management business Strong presence in economically diverse, major markets supported by positive demographic trends Robust legacy deposit base
Slide 5: Strategies for Long-Term Success
Strategies for Long-Term Success
Slide 6: Long-Term Growth Strategies
Strategic pillars focused on driving shareholder return Long-Term Growth Strategies Focus on Delivering Positive Operating Leverage Strong Legacy of Credit Quality, Risk Management, and Compliance Diversified Loan Portfolio with a Relationship Lending Focus Long History of Strong Wealth Management C
Slide 7: Diversified Loan Portfolio
Focus on strategic diversification, growth, and credit quality Balance disciplined loan origination with prudent underwriting standards Focus on relationship lending, especially for C&I Key offerings include loan swaps, treasury management, foreign exchange, cyber security, and lockbox services Stro
Slide 8: Trust & Investments
Trust & Investments $5.0B of trust and mutual fund assets under management 6,700+ relationships Legacy market private wealth management growth opportunities Expansion opportunities in the Mid-Atlantic market WesMark Funds – six proprietary funds across equities, bonds, and tactical assets Strong cap
Slide 9: Digital banking utilization
Digital banking utilization ~72% of retail customers utilize online digital banking services ~4.5 million web and mobile logins per month Mobile ~50% of total, with an average of 17 monthly logins per customer >170,000 mobile wallet transactions, ~30,000 mobile deposits, and >30,000 Zelle® payments
Slide 10: Granular core deposit funding base
Granular core deposit funding base supports diversified commercial and retail strategy Robust legacy deposit base provides competitive funding advantage, especially in the typical higher cost Mid-Atlantic and major metro markets During the last five years: Total deposits (excluding CDs) have grown o
Slide 11: Franchise-Enhancing Expansion
Targeted acquisitions in existing markets and new higher-growth metro areas; as well as 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 processes, provides abi
Slide 12: Delivering positive operating leverage; enhancing shareholder value
Delivering positive operating leverage; enhancing shareholder value Note: financial data as of 12/31; current data as of 9/30/2023 (operating leverage YTD); balance sheet data as of period ends; Focus on Enhancing Shareholder Value ESB Merger (Feb-15) $10B Asset Threshold Preparations Begun Lending
Slide 13: Strong legacy of credit and risk management and regulatory compliance
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 14: Commitment to Sustainability
Ensuring a strong financial institution for all of our stakeholders Note: data as of 12/31/2022 except Board diversity (as of 4/19/2023) and financial center reduction (as of 12/31/2022 and compared to 12/31/2018); “CRA” is Community Reinvestment Act; “key senior executive leadership” defined as the
Slide 15: Awards and recognition from Forbes and Bauer Financial
WesBanco Bank was named, for the 5th year in a row, one of the World’s Best Banks in an independent ranking by Forbes, based 100% on customer satisfaction and consumer feedback High scores for ‘customer service’, ‘digital services’, ‘satisfaction’, and ‘financial advice’ For the 3rd consecutive year
Slide 16: WesBanco Financial Overview
Ww . . . WesBanco Financial Overview ©2023 WesBanco Inc. | All rights reserved
Slide 17: Q3 2023 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 18: 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 19: Net interest margin of 3.03%
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 20: 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 21: 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 22: Comparable operating measures to peer bank group
Comparable operating measures to peer bank group Note: financial data as of 12/31 YTD; current data as of 9/30/2023 YTD; Current Expected Credit Losses (“CECL”) accounting standard adopted January 1, 2020 by WSBC; peer bank group includes all U.S. banks with total assets of $10B to $25B (as of each
Slide 23: Favorable asset quality measures compared to peer bank group
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 10/31/2023) and represent simple averages except criticized & classified lo
Slide 24: Returning value to shareholders
Returning value to shareholders Note: dividend through August 2023 declaration announcement; WSBC dividend yield based upon 10/30/2023 closing stock price of $24.27; 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 10/31/
Slide 25: WesBanco Appendix
Ww . WesBanco Appendix ©2023 WesBanco Inc. | All rights reserved
Slide 26: 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 27: 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 28: 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 29: 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 30: Efficiency Ratio Reconciliation
Efficiency Ratio Reconciliation Note: “efficiency ratio” is non-interest expense excluding restructuring and merger-related expense divided by total income; FTE represents fully taxable equivalent; Old Line Bancshares merger closed November 2019; Farmers Capital Bank Corporation merger closed August
Slide 31: Pre-Tax, Pre-Provision Income (PTPP) and Ratios Reconciliation
Pre-Tax, Pre-Provision Income (PTPP) and Ratios Reconciliation
Slide 32: Net Income and Diluted Earnings per Share (EPS) Reconciliation
Net Income and Diluted Earnings per Share (EPS) Reconciliation
Slide 33: Tangible Book Value per Share Reconciliation
Tangible Book Value per Share Reconciliation
Slide 34: 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 35: 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