Wesbanco, Inc. · NASDAQ:WSBC
Wesbanco — Investor Presentation (November 2021)
31 slides from Wesbanco's investor presentation, Nov 3, 2021
Slide 1: Investor Presentation (Q4 2021)
John Iannone Senior Vice President, Investor & Public Relations 304-905-7021 Investor Presentation (Q4 2021) (WSBC financials as of the three months ended 30 September 2021)
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: Evolving Regional Financial Services Institution
2 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 grow
Slide 4: Investment Rationale
3 Investment Rationale Balanced loan and deposit distribution across footprint Diversified earnings streams built for long-term success, led by century-old, $5.5B trust and wealth management business Strong presence in economically diverse, major markets supported by positive demographic trends Robu
Slide 5: Strategies for Long-Term Success
Strategies for Long-Term Success
Slide 6: Long-Term Growth Strategies
5 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 De
Slide 7: Diversified Loan Portfolio
6 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 Stron
Slide 8: Strong Wealth Management Capabilities
Private Banking $1.0B in private banking loans and deposits 3,550+ relationships Growth opportunities from shale-related private wealth management Expansion opportunities in KY, IN, and Mid-Atlantic 7 Strong Wealth Management Capabilities Note: assets, loans, deposits, and clients as of 9/30/2021; c
Slide 9: Digital banking utilization
Digital banking utilization ~70% of retail customers utilize online digital banking services ~4.3 million web and mobile logins per month Mobile ~50% of total, with an average of 17 monthly logins per customer Mobile wallet & mobile deposits increased ~60% & ~15% YoY, respectively Zelle® utilized as
Slide 10: Benefits of Core Deposit Funding Advantage
9 Benefits of Core Deposit Funding Advantage Robust legacy deposit base, enhanced by shale energy-related royalties, provides funding advantage in Mid-Atlantic market Reflecting the significantly lower interest rate environment, aggressively reduced deposit rates since March 2020 During the last fiv
Slide 11: Franchise Expansion
10 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
Slide 12: Focus on Enhancing Shareholder Value
11 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 9/30
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
13 Recent Successes and Accolades For the second consecutive year, named to Newsweek magazine's ranking of America's Best Banks, recognizing those banks that best serve their customers needs, as well as being named the Best Big Bank in the state of West Virginia Based 100% on customer satisfaction a
Slide 15: Financial Overview
WesBanco By all accounts, better. é Financial Overview
Slide 16: Q3 2021 Financial and Operational Highlights
Q3 2021 Financial and Operational Highlights 15 Note: financial and operational highlights during the quarter ended September 30, 2021 (1) Non-GAAP measure – please see reconciliation in appendix; includes $2.6 million of pre-tax settlement costs with respect to the pending resolution of a lawsuit S
Slide 17: Q3 2021 Total Portfolio Loans
Q3 2021 Total Portfolio Loans ($MM) 16 ~3,190 SBA PPP loans remaining total ~$272 million (as of 9/30/2021) During Q3 2021, ~3,080 customers applied for and received forgiveness of their SBA PPP loans totaling $278 million Continued commercial real estate pay-offs via an aggressive secondary market
Slide 18: Q3 2021 Net Interest Margin (NIM)
Q3 2021 Net Interest Margin (NIM) 17 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, 9/30/2021 investment securities increased $1.1 billion year-over-year, to represent ~2
Slide 19: Q3 2021 Non-Interest Income
Q3 2021 Non-Interest Income 18 Trust fees increased primarily from net organic growth in trust assets under management ($5.5 billion) Electronic banking fees increased primarily due to our transition to adjusted settlement processes of a new third-party digital banking service provider Mortgage bank
Slide 20: Q3 2021 Non-Interest Expense
Q3 2021 Non-Interest Expense 19 Total operating expenses remained well-controlled Year-to-date efficiency ratio 57.04% Other operating expenses includes $2.6 million of settlement costs with respect to the pending resolution of a lawsuit during Q3 2021 Salaries and wages increased due to higher ince
Slide 21: Comparable Operating Metrics
20 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)
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 Q3 2021 dividend yie
Slide 24: Appendix
WesBanco By all accounts, better. Appendix
Slide 25: Q3 2021 Key Metrics
Q3 2021 Key Metrics 24 Note: PTPP = pre-tax, pre-provision Non-GAAP measure – please see reconciliation in appendix Excludes restructuring and merger-related expenses Q3 2021 non-interest expense includes $2.6 million of pre-tax settlement costs with respect to the pending resolution of a lawsuit, e
Slide 26: Q3 2021 Current Expected Credit Loss (CECL)
The decrease in the allowance was primarily driven by improvements in the COVID-19 pandemic related adjustments and macroeconomic forecast These improvements resulted in a negative provision for credit losses of $1.7 million Allowance coverage ratio of 1.38%, or, excluding SBA PPP loans, 1.42% Exclu
Slide 27: Reconciliation: Efficiency Ratio
Reconciliation: Efficiency Ratio 26 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 Au
Slide 28: Reconciliation: Pre-Tax, Pre-Provision Income (PTPP) and Ratios
Reconciliation: Pre-Tax, Pre-Provision Income (PTPP) and Ratios 27
Slide 29: Reconciliation: Net Income, EPS & Tangible Book Value per Share
Reconciliation: Net Income, EPS & Tangible Book Value per Share 28 Note: Current Expected Credit Losses (“CECL”) accounting standard adopted January 1, 2020 by WSBC
Slide 30: Reconciliation: Return on Average Assets
29 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 31: Reconciliation: Return on Average Tangible Equity
30 (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 Au