Wesbanco, Inc. · NASDAQ:WSBC
Wesbanco — Q3 2020 Earnings Presentation
21 slides from Wesbanco's earnings presentation, Oct 21, 2020
Slide 1: Third Quarter 2020 Earnings Call Presentation
21 October 2020 Third Quarter 2020 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: Q3 2020 Financial and Operational Highlights
Q3 2020 Financial and Operational Highlights Note: financial and operational highlights during the quarter ended September 30, 2020; loan growth includes approximately $853.1 million of loans funded through the Small Business Administration’s Paycheck Protection Program (“SBA PPP”), as established b
Slide 4: Q3 2020 Key Metrics
Q3 2020 Key Metrics Note: PTPP = pre-tax, pre-provision; OLBK financial results included in WSBC results since merger consummation date of 11/22/2019 Non-GAAP measure – please see reconciliation in appendix Excludes restructuring and merger-related expenses
Slide 5: Q3 2020 Total Portfolio Loans ($MM)
Q3 2020 Total Portfolio Loans ($MM) Note: OLBK financial results included in WSBC results since merger consummation date of 11/22/2019 Funded nearly 7,200 SBA PPP loans YTD totaling ~$853MM (as of 9/30/2020)(recorded in C&I loan category) Q3 CRE loan YoY organic growth of 4.9% was driven by new prod
Slide 6: Q3 2020 Loan Portfolio Diversification
Q3 2020 Loan Portfolio Diversification Note: loan data as of quarter ending 9/30/2020; SBA PPP loans totaled $853.1MM and are reflected in the ‘C&I’ (left chart) and ‘All Other Loans’ (right chart) categories Focus on balanced loan distribution across six-state footprint and strategic loan growth an
Slide 7: Successfully Helping Others During the Pandemic
Successfully Helping Others During the Pandemic Note: deferral data reflects all initial loan deferrals accepted and closed by customers since March 2020 Protected employees and customers by working remote, implementing appropriate safety protocols, and continuously serving customers via both drive-
Slide 8: Customer Support Efforts During the Pandemic
Customer Support Efforts During the Pandemic Note: deferral data as of 10/16/2020 reflects loan deferrals accepted and closed by customers including 186 2nd deferrals for $217MM ‘% Category’ and ‘% Total Loans’ calculations based on 9/30/2020 balances and excludes ~7,200 SBA PPP loans totaling $853.
Slide 9: Q3 2020 Net Interest Margin (NIM)
Q3 2020 Net Interest Margin (NIM) NIM negatively impacted by the low interest rate environment and flattening of the yield curve The Federal Reserve Board’s target federal funds rate was reduced 225bp from July 2019 through March 2020 Aggressively reduced deposit rates beginning in late-March, which
Slide 10: Q3 2020 Non-Interest Income
Q3 2020 Non-Interest Income Mortgage banking fees increased due to a 100% YoY (and 7% QoQ) increase in 1-to-4 family residential mortgage origination dollar volume, and the associated sale of ~75% of those originations into the secondary market (40-50% historically) New commercial loan swaps (“other
Slide 11: Q3 2020 Non-Interest Expense
Q3 2020 Non-Interest Expense Total operating expenses remained well-controlled through company-wide efforts Efficiency ratio improved 234bp YoY to 55.23% Total non-interest expense increased YoY due to the additional staffing and financial center locations from the OLBK acquisition Salaries and wage
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: Q3 2020 Current Expected Credit Loss (CECL)
The increase in the allowance and related provision for credit losses was related to the COVID-19 related adjustments partially offset by improvement in the macroeconomic forecast and changes in prepayment assumptions and the loan portfolio Allowance coverage ratio of 1.68%, or, excluding SBA PPP lo
Slide 14: Strong Capital Position
Tier 1 Risk-Based Capital Ratio Strong Capital Position Strong regulatory capital ratios significantly above both regulatory requirements and well-capitalized levels; and, higher tangible equity levels Enhanced by the August 2020 issuance of $150 million of preferred stock Note: financial data as of
Slide 15: Appendix
150 WesBanco Appendix Eg
Slide 16: Reconciliation: Pre-Tax, Pre-Provision Income (PTPP) and Ratios
Reconciliation: Pre-Tax, Pre-Provision Income (PTPP) and Ratios Note: Old Line Bancshares merger closed November 2019
Slide 17: Reconciliation: Net Income, EPS (Diluted), Tangible Book Value per Share
Reconciliation: Net Income, EPS (Diluted), Tangible Book Value per Share Note: Old Line Bancshares merger closed November 2019
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; Old Line Bancshares merger closed November 2019
Slide 19: Reconciliation: Returns on Average Assets and Average Equity
Reconciliation: Returns on Average Assets and Average Equity Note: Old Line Bancshares merger closed November 2019 (1) three-, six-, and nine-month (as applicable) figures are annualized
Slide 20: Reconciliation: Return on Average Tangible Equity
Reconciliation: Return on Average Tangible Equity Note: Old Line Bancshares merger closed November 2019 (1) three-, six-, and nine-month (as applicable) figures are annualized
Slide 21: Reconciliation: Tangible Equity to Tangible Assets
Reconciliation: 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