Wesbanco, Inc. · NASDAQ:WSBC
Wesbanco — Investor Presentation (August 2022)
32 slides from Wesbanco's investor presentation, Aug 30, 2022
Slide 1: Investor Presentation (Q3 2022)
John Iannone Senior Vice President, Investor & Public Relations 304-905-7021 Investor Presentation (Q3 2022) (WSBC financials as of the three months ended 30 June 2022)
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
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
Slide 4: Investment Rationale
Investment Rationale Balanced loan and deposit distribution across footprint Diversified earnings streams built for long-term success, led by century-old, $4.8B trust and wealth management business Strong presence in economically diverse, major markets supported by positive demographic trends Robust
Slide 5: Strategies for Long-Term Success
Strategies for Long-Term Success
Slide 6: Long-Term Growth Strategies
Long-Term Growth Strategies Focus on Delivering Positive Operating Leverage Strong Legacy of Credit Quality, Risk Management, and Compliance Diversified Loan Portfolio with C&I and Home Lending Focus Long History of Strong Wealth Management Capabilities Digital Banking Service Strategies & Core Depo
Slide 7: Diversified Loan Portfolio
Diversified Loan Portfolio Focus on strategic diversification, growth, and credit quality Balance disciplined loan origination with prudent lending standards Focus on C&I and home equity lending Key offerings include treasury management, foreign exchange, cyber security, and lockbox services Strong
Slide 8: Strong Wealth Management Capabilities
Private Banking $1.0B in private banking loans and deposits 3,850+ relationships Legacy market private wealth management growth opportunities Strong Wealth Management Capabilities Note: assets, loans, deposits, and clients as of 6/30/2022; chart financials as of 12/31 unless otherwise stated $100 $2
Slide 9: Digital banking utilization
Digital banking utilization ~70% of retail customers utilize online digital banking services ~3.8 million web and mobile logins per month Mobile ~53% of total, with an average of 23 monthly logins per customer ~100,000 mobile wallet transactions, ~28,000 mobile deposits, and ~16,000 Zelle® payments
Slide 10: Benefits of Core Deposit Funding Advantage
Benefits of Core Deposit Funding Advantage Remain focused on controlling the costs of our various funding sources Robust legacy deposit base provides competitive funding advantage, especially in the typical higher cost Mid-Atlantic market During the last five years: Total deposits (excluding CDs) ha
Slide 11: Franchise Expansion
Franchise 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 pro
Slide 12: Focus on Enhancing Shareholder Value
Focus on Enhancing Shareholder Value Disciplined growth, balanced by a fundamental focus on expense management and supported by franchise-enhancing acquisitions, in order to deliver positive operating leverage and enhance shareholder value Note: financial data as of 12/31; current data as of 6/30/20
Slide 13: Strong Risk Management and Capital Position
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
Commitment to Sustainability Note: data as of 12/31/2021 except Board diversity (as of 4/20/2022) and financial center reduction (as of 6/30/2022 and compared to 12/31/2018); “CRA” is Community Reinvestment Act; “key senior executive leadership” defined as the CEO’s direct reports and their direct r
Slide 15: Commitment to Excellence
Commitment to Excellence Based on customer satisfaction and consumer feedback, WesBanco Bank was named The #1 bank in Ohio and the #2 bank in Kentucky For the fourth year in a row, one of the World’s Best Banks WesBanco was recognized as one of “America’s Most Trustworthy Companies”, as well as bein
Slide 16: Financial Overview
wy W WesBanco Financial Overview
Slide 17: Q2 2022 Financial and Operational Highlights
Q2 2022 Financial and Operational Highlights Note: financial and operational highlights during the quarter ended June 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 (excludin
Slide 18: Q2 2022 Total Portfolio Loans
Q2 2022 Total Portfolio Loans ($MM) Total loan growth (excluding SBA PPP) was broad-based across all loan categories and markets +5.4 (or +21.8% annualized) quarter-over-quarter and +3.8% year-over-year Strong sequential quarter loan growth demonstrates the successful execution of our expansion into
Slide 19: Q2 2022 Net Interest Margin (NIM)
Q2 2022 Net Interest Margin (NIM) Q2 2022 net interest margin of 3.03% increased 8 basis points sequentially, which reflects the 125 basis point increase in the federal fund rate during the last 3 months, as well as our successful deployment of excess cash through loan and securities growth When exc
Slide 20: Q2 2022 Non-Interest Income
Q2 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 and electronic banking fees were higher due to increased general consumer spending While originations remained
Slide 21: Q2 2022 Non-Interest Expense
Q2 2022 Non-Interest Expense Salaries and wages increased due to higher salary expense related to normal merit increases and the hourly wage increase that we implemented last year, lower deferred loan origination costs, and higher bonus and stock option accruals FDIC insurance increased year-over-ye
Slide 22: Comparable Operating Metrics
Comparable Operating Metrics Disciplined execution upon growth strategies providing strong performance compared to all U.S. banks with total assets from $10B to 25B (note: 2020 and 2021 comparability impacted by timing of the adoption of CECL accounting standard and economic assumptions used by each
Slide 23: Solid Legacy of Credit Quality
Non-Performing Assets as % of Total Assets Net Charge-Offs as % of Average Loans (YTD 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 (note: 20
Slide 24: Returning Value to Shareholders
Returning Value to Shareholders Focus on appropriate capital allocation to provide financial flexibility while continuing to enhance shareholder value through earnings growth and effective capital management Capital management strategy: dividends, share repurchases, acquisitions Q2 2022 dividend yie
Slide 25: Appendix
wy W WesBanco Appendix
Slide 26: Q2 2022 Key Metrics
Q2 2022 Key Metrics Note: PTPP = pre-tax, pre-provision Non-GAAP measure – please see reconciliation in appendix Excludes restructuring and merger-related expenses
Slide 27: Q2 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 the macroeconomic forecasts utilized Allowance coverage ratio of 1.15% Excludes fair market value adjustments on previously acquired loans
Slide 28: 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; Farmers Capital Bank Corporation merger closed Augus
Slide 29: Reconciliation: Pre-Tax, Pre-Provision Income (PTPP) and Ratios
Reconciliation: Pre-Tax, Pre-Provision Income (PTPP) and Ratios
Slide 30: Reconciliation: Net Income, EPS & Tangible Book Value per Share
Reconciliation: Net Income, EPS & Tangible Book Value per Share Note: Current Expected Credit Losses (“CECL”) accounting standard adopted January 1, 2020 by WSBC
Slide 31: Reconciliation: Return on Average Assets
Note: Current Expected Credit Losses (“CECL”) accounting standard adopted January 1, 2020 by WSBC; Old Line Bancshares merger closed November 2019; Farmers Capital Bank Corporation merger closed August 2018; First Sentry Bancshares merger closed April 2018 Reconciliation: Return on Average Assets
Slide 32: Reconciliation: Return on Average Tangible Equity
(1) amortization of intangibles tax effected at 21% for 2018 forward, and 35% for all prior periods Note: Current Expected Credit Losses (“CECL”) accounting standard adopted January 1, 2020 by WSBC; Old Line Bancshares merger closed November 2019; Farmers Capital Bank Corporation merger closed Augus