Wesbanco, Inc. · NASDAQ:WSBC
Wesbanco — Q4 2020 Earnings Presentation
19 slides from Wesbanco's earnings presentation, Jan 26, 2021
Slide 1: Fourth Quarter 2020 Earnings Call Presentation
26 January 2021 Fourth Quarter 2020 Earnings Call Presentation
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures 1 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
Slide 3: Q4 2020 Financial and Operational Highlights
Q4 2020 Financial and Operational Highlights 2 Note: financial and operational highlights during the quarter ended December 31, 2020; loan growth includes approximately $726.3 million of loans funded through the Small Business Administration’s Paycheck Protection Program (“SBA PPP”), as established
Slide 4: Q4 2020 Key Metrics
Q4 2020 Key Metrics 3 Note: PTPP = pre-tax, pre-provision; OLBK financial results included in WSBC results since merger consummation date of 11/22/2019 Non-GAAP measure – please see reconciliation in appendix Excludes restructuring and merger-related expenses
Slide 5: Q4 2020 Total Portfolio Loans
Q4 2020 Total Portfolio Loans ($MM) 4 ~6,850 SBA PPP loans from the first rounds totaling ~$726MM remaining (as of 12/31/2020) (recorded in C&I loan category) Q4 residential real estate loan levels were impacted by retaining a smaller percentage of the $351 million of Q4 mortgage origination dollar
Slide 6: Customer Support Efforts During the Pandemic
5 Customer Support Efforts During the Pandemic Note: deferral data reflects loan deferrals accepted and closed by customers for each time period; the majority of hospitality loan-to-values are pre-pandemic Pandemic-related loan deferral balances down ~90% from May 2020 peak All retail deferrals targ
Slide 7: Q4 2020 Net Interest Margin (NIM)
Q4 2020 Net Interest Margin (NIM) 6 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 throughout 2020, which helpe
Slide 8: Q4 2020 Non-Interest Income
Q4 2020 Non-Interest Income 7 Mortgage banking fees increased due to a 75% year-over-year increase in 1-to-4 family residential mortgage origination dollar volume, and the associated sale of ~65% of those originations into the secondary market (40-50% historically) Service charges on deposits were l
Slide 9: Q4 2020 Non-Interest Expense
Q4 2020 Non-Interest Expense 8 Total operating expenses remained well-controlled through company-wide efforts Efficiency ratio improved 123bp year-over-year to 57.06% Total non-interest expense increased year-over-year due to the additional staffing and financial center locations from the OLBK acqui
Slide 10: 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 11: Q4 2020 Current Expected Credit Loss (CECL)
The increase in the allowance was related to the COVID-19 related adjustments and changes in prepayment assumptions and the loan portfolio partially offset by improvement in the macroeconomic forecast Allowance coverage ratio of 1.72%, or, excluding SBA PPP loans, 1.85% Excludes fair market value ad
Slide 12: Strong Capital Position
Tier 1 Risk-Based Capital Ratio 11 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
Slide 13: Appendix
150 VU WesBanco Appendix
Slide 14: Reconciliation: Pre-Tax, Pre-Provision Income (PTPP) and Ratios
Reconciliation: Pre-Tax, Pre-Provision Income (PTPP) and Ratios 13 Note: Old Line Bancshares merger closed November 2019
Slide 15: Reconciliation: Net Income, EPS (Diluted), Tangible Book Value per Share
Reconciliation: Net Income, EPS (Diluted), Tangible Book Value per Share 14 Note: Old Line Bancshares merger closed November 2019
Slide 16: Reconciliation: Efficiency Ratio
Reconciliation: Efficiency Ratio 15 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 17: Reconciliation: Return on Average Assets
Reconciliation: Return on Average Assets 16 Note: Old Line Bancshares merger closed November 2019 (1) three-, six-, and nine-month (as applicable) figures are annualized
Slide 18: Reconciliation: Return on Average Tangible Equity
Reconciliation: Return on Average Tangible Equity 17 Note: Old Line Bancshares merger closed November 2019 (1) three-, six-, and nine-month (as applicable) figures are annualized
Slide 19: Reconciliation: Tangible Equity to Tangible Assets
Reconciliation: Tangible Equity to Tangible Assets 18 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 clos