Wesbanco, Inc. · NASDAQ:WSBC
Wesbanco — Q2 2020 Earnings Presentation
21 slides from Wesbanco's earnings presentation, Jul 22, 2020
Slide 1: Second Quarter 2020 Earnings Call Presentation
22 July 2020 Second 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: Q2 2020 Financial and Operational Highlights
Q2 2020 Financial and Operational Highlights Note: financial and operational highlights during the quarter ended June 30, 2020; loan growth includes approximately $836.8 million of loans funded through the Small Business Administration’s Paycheck Protection Program (“SBA PPP”), as established by the
Slide 4: Key Metrics
Q2 2020 Key Metrics Note: PTPP = pre-tax, pre-provision; Old Line Bancshares, Inc. (“OLBK”) financial results included in WSBC results since merger consummation date of 11/22/2019 (1) Non-GAAP measure – please see reconciliation in appendix
Slide 5: Total Portfolio Loans ($MM)
Q2 2020 Total Portfolio Loans ($MM) Note: Small Business Administration’s Paycheck Protection Program (“SBA PPP”), as established by the CARES Act; Old Line Bancshares, Inc. (“OLBK”) financial results included in WSBC results since merger consummation date of 11/22/2019 Funded more than 6,800 SBA PP
Slide 6: Loan Portfolio Diversification
Q2 2020 Loan Portfolio Diversification Note: loan data as of quarter ending 6/30/2020; SBA PPP loans totaled $836.8MM and are reflected in the C&I (left chart) and All Other Loans (right chart) categories Focus on balanced loan distribution across 6-state footprint and strategic loan growth and dive
Slide 7: Hotel Portfolio
Q2 2020 Hotel Portfolio Note: loan balances as of 6/30/2020 and excludes SBA PPP loans ~210 loans with $729MM total loan balance Average loan-to-value = 56.0% Average debt service coverage ratio = 1.60x Most hotels in suburban markets, and near major highways and office parks 17% in shale gas market
Slide 8: Selected Commercial Loan Portfolio Details
Selected Commercial Loan Portfolio Details Retail Portfolio Restaurant Portfolio Direct Energy Portfolio 1,394 retail loans with $904MM total loan balance Loan balance distribution as % of total loans (x-PPP) R/E – shopping center: 2.9% R/E – other retail: 2.6% Retail sales / other: 1.4% Gasoline/co
Slide 9: Customer Support Efforts During Pandemic
Customer Support Efforts During Pandemic Note: deferral data as of 7/20/2020 and reflects approved loan deferrals that were accepted and closed by customers ‘% Category’ calculations based on 6/30/2020 balances and excludes ~6,800 SBA PPP loans totaling $836.8MM (as of 6/30/2020) from the category t
Slide 10: SBA's Paycheck Protection Program
SBA’s Paycheck Protection Program Note: data as of 6/30/2020 Participating in Round 3 – no material requests in queue “Thank you so much for your help in processing my PPP loan. It has taken a load off of my mind. I really appreciate how quickly and efficiently you were able to process everything.”
Slide 11: Net Interest Margin (NIM)
Q2 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 12: Non-Interest Income
Q2 2020 Non-Interest Income Mortgage banking fees increased due to a 70% QoQ (and 125% YoY) increase in 1-to-4 family residential mortgage origination dollar volume, and the associated sale of ~50% of those originations into the secondary market New commercial loan swaps (“other income”) increased 3
Slide 13: Non-Interest Expense
Q2 2020 Non-Interest Expense Total operating expenses remained well-controlled Salaries and wages reflects the OLBK merger-related staff cuts implemented during late-Q1, after the signage and system conversion Other operating expenses increased due to pandemic-relief and other donations of $0.8MM To
Slide 14: Strong Legacy of Credit Quality
Non-Performing Assets as % of Total Assets Net Charge-Offs as % of Average Loans (Annualized) (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
Slide 15: Q2 2020 Current Expected Credit Loss (CECL)
The increase in the allowance and related provision for credit losses was related to the continued deterioration in the macroeconomic forecast during Q2 2020, primarily driven by the negative forecasted economic impacts of the pandemic The forecast, based upon a blend of two nationally-recognized pu
Slide 16: Appendix
150 WesBanco Appendix Eg
Slide 17: 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 18: 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 19: 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 20: 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 21: 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