Wesbanco, Inc. · NASDAQ:WSBC
Wesbanco — Q3 2021 Earnings Presentation
17 slides from Wesbanco's earnings presentation, Oct 26, 2021
Slide 1: Third Quarter 2021 Earnings Call Presentation
26 October 2021 Third Quarter 2021 Earnings Call Presentation
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: Q3 2021 Financial and Operational Highlights
Q3 2021 Financial and Operational Highlights 2 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 resolution of a lawsuit Solid pre-
Slide 4: Key Metrics
Q3 2021 Key Metrics 3 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 $2.6 million of pre-tax settlement costs with respect to the resolution of a lawsuit, excluding
Slide 5: Total Portfolio Loans ($MM)
Q3 2021 Total Portfolio Loans ($MM) 4 ~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 n
Slide 6: Net Interest Margin (NIM)
Q3 2021 Net Interest Margin (NIM) 5 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 ~23
Slide 7: Non-Interest Income
Q3 2021 Non-Interest Income 6 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 banki
Slide 8: Non-Interest Expense
Q3 2021 Non-Interest Expense 7 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 resolution of a lawsuit during Q3 2021 Salaries and wages increased due to higher incentive com
Slide 9: Strong Legacy of Credit Quality
Non-Performing Assets as % of Total Assets Net Charge-Offs as % of Average Loans (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 Strong Legac
Slide 10: 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 11: Strong Capital Position
Strong regulatory capital ratios significantly above both regulatory requirements and well-capitalized levels; and, higher tangible equity levels Purchased approximately 2.1 million shares of WesBanco common stock on the open market during Q3 2021 ~2.96 million shares remained for repurchase (as of
Slide 12: WesBanco Appendix
WesBanco By all accounts, better. Appendix
Slide 13: Reconciliation: Pre-Tax, Pre-Provision Income (PTPP) and Ratios
Reconciliation: Pre-Tax, Pre-Provision Income (PTPP) and Ratios 12
Slide 14: Reconciliation: Net Income, EPS (Diluted), Tangible Book Value per Share
Reconciliation: Net Income, EPS (Diluted), Tangible Book Value per Share 13
Slide 15: Reconciliation: Efficiency Ratio
Reconciliation: Efficiency Ratio 14 Note: “efficiency ratio” is non-interest expense excluding restructuring and merger-related expense divided by total income; FTE represents fully taxable equivalent
Slide 16: Reconciliation: Return on Average Assets and Tangible Equity to Tangible Assets
Reconciliation: Return on Average Assets and Tangible Equity to Tangible Assets 15 (1) three-, six-, and nine-month (as applicable) figures are annualized Note: Old Line Bancshares merger closed November 2019; Farmers Capital Bank Corporation merger closed August 2018; First Sentry Bancshares merger
Slide 17: Reconciliation: Return on Average Tangible Equity
Reconciliation: Return on Average Tangible Equity 16 (1) three-, six-, and nine-month (as applicable) figures are annualized