Wesbanco, Inc. · NASDAQ:WSBC
Wesbanco — Investor Presentation (May 2022)
31 slides from Wesbanco's investor presentation, May 4, 2022
Slide 1: Investor Presentation (Q2 2022)
John Iannone Senior Vice President, Investor & Public Relations 304-905-7021 Investor Presentation (Q2 2022) (WSBC financials as of the three months ended 31 March 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, $5.4B 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 3,700+ relationships Legacy market private wealth management growth opportunities Strong Wealth Management Capabilities Note: assets, loans, deposits, and clients as of 3/31/2022; 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 ~3.7 million web and mobile logins per month Mobile ~53% of total, with an average of 23 monthly logins per customer Mobile wallet increased ~60% YoY Zelle® payment service utilization up ~40% QoQ (service a
Slide 10: Benefits of Core Deposit Funding Advantage
Benefits of Core Deposit Funding Advantage Robust legacy deposit base provides funding advantage in the Mid-Atlantic market Reflecting the significantly lower interest rate environment, aggressively reduced deposit rates since March 2020 During the last five years: Total deposits (excluding CDs) hav
Slide 11: Franchise Expansion
Franchise Expansion Targeted acquisitions in existing markets and new higher-growth metro areas Long-term focus on appropriate capital management to enhance shareholder value Strong capital and liquidity, along with strong regulatory compliance processes, provides ability to execute transactions qui
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 3/31/20
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: Recent Successes and Accolades
Recent Successes and Accolades Based 100% on customer satisfaction and consumer feedback, WesBanco Bank was named, for the fourth year in a row, one of the World’s Best Banks in an independent ranking by Forbes WesBanco was recognized as one of “America’s Most Trustworthy Companies” by Newsweek, as
Slide 15: Financial Overview
WesBane By all accounts, better. Financial Overview
Slide 16: Q1 2022 Financial and Operational Highlights
Q1 2022 Financial and Operational Highlights Note: financial and operational highlights during the quarter ended March 31, 2022 (1) Non-GAAP measure – please see reconciliation in appendix Solid pre-tax, pre-provision income and net income (excluding restructuring & merger-related expenses) Sequenti
Slide 17: Q1 2022 Total Portfolio Loans
Q1 2022 Total Portfolio Loans ($MM) Total loan growth (excluding SBA PPP) was 0.9% sequentially, or 3.6% annualized Sequential quarter total commercial loan growth of 2.9% (annualized) driven by both commercial real estate and C&I (excluding SBA PPP) Residential mortgage growth of 7.5% year-over-yea
Slide 18: Q1 2022 Net Interest Margin (NIM)
Q1 2022 Net Interest Margin (NIM) NIM negatively impacted by the lower interest rate environment, and a shift to a higher level of securities as a percentage of total assets As a result of higher cash balances from our customers’ higher personal savings, investment securities as of 3/31/2022 represe
Slide 19: Q1 2022 Non-Interest Income
Q1 2022 Non-Interest Income Trust fees and net securities brokerage revenue increased primarily from net organic growth Service charges on deposits and electronic banking fees were higher due to increased general consumer spending Bank-owned life insurance reflects higher death benefits of $1.9 mill
Slide 20: Q1 2022 Non-Interest Expense
Q1 2022 Non-Interest Expense Salaries and wages year-over-year increased due to lower deferred loan origination costs and the impact of normal merit increases and the hourly wage increase implemented last year Salaries and wages were down sequentially due to the lower day count during Q1 2022 Employ
Slide 21: 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 comparability impacted by timing of the adoption of CECL accounting standard and economic assumptions used by each bank) No
Slide 22: 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 $10B to 25B (note: 20
Slide 23: Returning Value to Shareholders
Returning Value to Shareholders Focus on appropriate capital allocation to provide financial flexibility while continuing to enhance shareholder value through earnings growth and effective capital management Capital management strategy: dividends, share repurchases, acquisitions Q1 2022 dividend yie
Slide 24: Appendix
w W WesBanco By all accounts, better. Appendix
Slide 25: Q1 2022 Key Metrics
Q1 2022 Key Metrics Quarter Ending 0331122 |Retum on Average Assets ‘""?) 1.02% IP TPP Return on Average Assets(112 1.24% JRetum on Average Tangible Equity (2 12.01% |PTPP Return on Average Tangible Equity ("7 [Tangible Book Value per Share ($)'") lEMiciency Raio!"10) 61.73% INet Interest Margin INo
Slide 26: Q1 2022 Current Expected Credit Loss (CECL)
The decrease in the allowance was primarily driven by improvements in the macroeconomic forecasts utilized These improvements resulted in a negative provision for credit losses of $3.4 million Allowance coverage ratio of 1.21%, or, excluding SBA PPP loans, 1.22% Excludes fair market value adjustment
Slide 27: Reconciliation: Efficiency Ratio
Reconciliation: Efficiency Ratio
Slide 28: Reconciliation: Pre-Tax, Pre-Provision Income (PTPP) and Ratios
Reconciliation: Pre-Tax, Pre-Provision Income (PTPP) and Ratios
Slide 29: 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 30: Reconciliation: Return on Average Assets
Reconciliation: Return on Average Assets
Slide 31: (1) amortization of intangibles tax effected at 21% for 2018 forward, and 35% for
(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