Wesbanco, Inc. · NASDAQ:WSBC
Wesbanco — Q3 2022 Earnings Presentation
17 slides from Wesbanco's earnings presentation, Oct 25, 2022
Slide 1: Third Quarter 2022 Earnings Call Presentation
25 October 2022 Third Quarter 2022 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 2022 Financial and Operational Highlights
Q3 2022 Financial and Operational Highlights Note: financial and operational highlights during the quarter ended September 30, 2022 (1) Non-GAAP measure – please see reconciliation in appendix; excludes restructuring and merger-related expenses Solid pre-tax, pre-provision income and net income (exc
Slide 4: Key Metrics
Q3 2022 Key Metrics Note: PTPP = pre-tax, pre-provision Non-GAAP measure – please see reconciliation in appendix Excludes restructuring and merger-related expenses
Slide 5: Total Portfolio Loans ($MM)
Q3 2022 Total Portfolio Loans ($MM) Loan growth continues to demonstrate the successful execution of our expansion into higher-growth markets and ability to hire top-tier commercial and mortgage loan officers across our footprint Total loan growth (excluding SBA PPP) was broad-based across loan cate
Slide 6: Net Interest Margin (NIM)
Q3 2022 Net Interest Margin (NIM) Q3 2022 net interest margin of 3.33% increased 30 basis points sequentially and 25 basis points year-over-year, which reflects the 225 basis point increase in the federal fund rate from March through July, as well as our successful deployment of excess cash into hig
Slide 7: Non-Interest Income
Q3 2022 Non-Interest Income Trust fees decreased primarily due to the decline in equity markets Net securities brokerage revenue increased due to organic growth Service charges on deposits were higher due to increased general consumer spending Mortgage banking income decreased due to fewer originati
Slide 8: Non-Interest Expense
Q3 2022 Non-Interest Expense Salaries and wages increased due to higher salary expense related to normal merit increases, higher staffing levels (primarily commercial and residential lenders), and hourly minimum wage increase Employee benefits increased sequentially due to an increase in the deferre
Slide 9: 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 10: Q3 2022 Current Expected Credit Loss (CECL)
The slight decrease in the allowance was primarily driven by improvements in the pandemic-related qualitative adjustments more than offsetting the increase from prepayment assumptions, loan growth, and the macroeconomic forecasts utilized Allowance coverage ratio of 1.11% Excludes fair market value
Slide 11: Strong Capital Position
Strong regulatory capital ratios significantly above both regulatory requirements and well-capitalized levels, with tangible equity levels above peers Purchased ~0.4 million shares of WesBanco common stock on the open market during Q3 2022, and ~1.3 million shares remained for repurchase (as of 9/30
Slide 12: Appendix
W W WesBanco By all accounts, better. Appendix
Slide 13: Reconciliation: Pre-Tax, Pre-Provision Income (PTPP) and Ratios
Reconciliation: Pre-Tax, Pre-Provision Income (PTPP) and Ratios
Slide 14: Reconciliation: Net Income, EPS (Diluted), Tangible Book Value per Share
Reconciliation: Net Income, EPS (Diluted), Tangible Book Value per Share
Slide 15: 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
Slide 16: Reconciliation: Return on Average Assets and Tangible Equity to Tangible Assets
Reconciliation: Return on Average Assets and Tangible Equity to Tangible Assets (1) three-, six-, and nine-month (as applicable) figures are annualized Note: Old Line Bancshares merger closed November 2019; Farmers Capital Bank Corporation merger closed August 2018; First Sentry Bancshares merger cl
Slide 17: Reconciliation: Return on Average Tangible Equity
Reconciliation: Return on Average Tangible Equity (1) three-, six-, and nine-month (as applicable) figures are annualized