Wesbanco, Inc. · NASDAQ:WSBC
Wesbanco — Investor Presentation (May 2023)
34 slides from Wesbanco's investor presentation, May 15, 2023
Slide 1: Investor Presentation (Q2 2023)
John Iannone Senior Vice President, Investor Relations 304-905-7021 Investor Presentation (Q2 2023) (WSBC financials as of the three months ended 31 March 2023)
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, $5.0B 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 loan swaps, treasury management, foreign exchange, cyber security, and lockbox serv
Slide 8: Strong Wealth Management Capabilities
Private Banking $1.1B in private banking loans and deposits 4,500+ relationships Legacy market private wealth management growth opportunities Strong Wealth Management Capabilities Note: assets, loans, deposits, and clients as of 3/31/2023; chart financials as of 12/31 unless otherwise stated $100 $3
Slide 9: Digital banking utilization
Digital banking utilization >74% of retail customers utilize online digital banking services ~4.5 million web and mobile logins per month Mobile ~49% of total, with an average of 22 monthly logins per customer >145,000 mobile wallet transactions, >28,000 mobile deposits, and >28,000 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 and major metro markets During the last five years: Total deposits (
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 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: Commitment to Sustainability
Commitment to Sustainability Note: data as of 12/31/2022 except Board diversity (as of 4/19/2023) and financial center reduction (as of 12/31/2022 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
Slide 15: Commitment to Excellence
Commitment to Excellence Based 100% on customer satisfaction and consumer feedback: WesBanco Bank was named, for the 5th year in a row, one of the World’s Best Banks in an independent ranking by Forbes WesBanco Bank was named to the Best-In-State Banks List by Forbes as the #1 bank in Ohio and the #
Slide 16: Financial Overview
wy W WesBanco Financial Overview
Slide 17: Q1 2023 Financial and Operational Highlights
Q1 2023 Financial and Operational Highlights Note: financial and operational highlights during the quarter ended March 31, 2023 (1) Non-GAAP measure – please see reconciliation in appendix; excludes restructuring and merger-related expenses Solid pre-tax, pre-provision income and net income (excludi
Slide 18: Q1 2023 Total Portfolio Loans
Q1 2023 Total Portfolio Loans ($MM) Loan growth continues to demonstrate the successful execution of our expansion into higher-growth markets and ability to hire top-tier commercial and mortgage loan officers across our footprint Total loan growth was broad-based across our markets +11.9% year-over-
Slide 19: Q1 2023 Net Interest Margin (NIM)
Q1 2023 Net Interest Margin (NIM) Q1 2023 net interest margin of 3.36% increased 41 basis points year-over-year, reflecting increases in the federal fund rate since March 2022 and deployment of excess cash into higher-yielding loans The net interest margin decreased 13 basis points sequentially due
Slide 20: Q1 2023 Non-Interest Income
Q1 2023 Non-Interest Income Q1 trust fees are seasonally higher due to tax preparation fees Electronic banking fees decreased year-over-year due to a $0.7 million credit received during the prior year period from our service provider Bank-owned life insurance decreased year-over-year due to $1.9 mil
Slide 21: Q1 2023 Non-Interest Expense
Q1 2023 Non-Interest Expense Salaries and wages increased year-over-year due to higher salary expense from higher staffing levels (primarily commercial and residential lenders) and merit increases Employee benefits increased year-over-year due to due higher staffing levels, increased pension expense
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 $10B to 25B (note: 20
Slide 24: Returning Value to Shareholders
Returning Value to Shareholders Focus on appropriate capital allocation to provide financial flexibility while continuing to enhance shareholder value through earnings growth and effective capital management Capital management strategy: dividends, share repurchases, acquisitions ~1.2 million shares
Slide 25: Appendix
wy W WesBanco Appendix
Slide 26: Q1 2023 Key Metrics
Q1 2023 Key Metrics Note: PTPP = pre-tax, pre-provision Non-GAAP measure – please see reconciliation in appendix Excludes restructuring and merger-related expenses
Slide 27: Q1 2023 Total Deposits
Q1 2023 Total Deposits ($MM) Total deposits, as of March 31, 2023, were $12.9 billion, down 2.0%, when compared to December 31, 2022, reflecting the impact of rate and inflationary pressures and rising costs across the economy Further, the Federal Reserve’s tightening actions to control inflation ha
Slide 28: Q1 2023 Total Securities
Q1 2023 Total Securities ($MM) Weighted average yield 2.49% vs. 1.96% last year Weighted average duration 5.4 years Total unrealized securities losses (after-tax): AFS = $234M HTM = $101M Note: not recognized in accumulated other comprehensive income Note: weighted average yields have been calculate
Slide 29: Q1 2023 Current Expected Credit Loss (CECL)
The increase in the allowance was primarily driven by changes in prepayment assumptions and current loan growth, more than offsetting improvements in the pandemic-related qualitative adjustments During Q1 2023, recorded a provision for credit losses of $3.6 million Allowance coverage ratio of 1.09%
Slide 30: 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 31: Reconciliation: Pre-Tax, Pre-Provision Income (PTPP) and Ratios
Reconciliation: Pre-Tax, Pre-Provision Income (PTPP) and Ratios
Slide 32: 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 33: 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 34: Reconciliation: Return on Average Tangible Equity
(1) amortization of intangibles tax effected at 21% for all periods presented 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 B