Wesbanco, Inc. · NASDAQ:WSBC
Wesbanco — Investor Presentation (February 2020)
30 slides from Wesbanco's investor presentation, Feb 12, 2020
Slide 1: Investor Presentation (Q1 2020)
John Iannone Senior Vice President, Investor & Public Relations 304-905-7021 Investor Presentation (Q1 2020) (WSBC financials as of Q4 2019)
Slide 2: Forward-Looking Statements
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 Act of 1995. The information contained in this report should
Slide 3: Non-GAAP Financial Measures
In addition to the results of operations presented in accordance with Generally Accepted Accounting Principles (GAAP), WesBanco's management uses, and this presentation contains or references, certain non-GAAP financial measures, such as tangible common equity/tangible assets; net income excluding a
Slide 4: Key Differentiators
Key Differentiators Balanced loan and deposit distribution across footprint Diversified earnings streams built for long-term success Strong market positions in economically diverse, major markets with positive demographic trends Robust legacy deposit base, enhanced by shale gas royalties Balanced an
Slide 5: Balanced and Diversified
Balanced and Diversified Strong market positions across legacy and major metropolitan markets Balanced loan and deposit distribution across diverse regional footprint Diversified revenue generation engines supported by unique advantages Well-executed long-term growth strategies Note: loan and deposi
Slide 6: Investment Rationale
Investment Rationale Balanced financial services company with a diversified earnings stream and a strong legacy of credit and risk management Disciplined growth that delivers positive operating leverage Emphasis on customer service to ensure relationship value that meets customer needs efficiently a
Slide 7: Strategies for Long-Term Success
Strategies for Long-Term Success
Slide 8: 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 Retail Banking Service Strategies & Core Depos
Slide 9: 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 Average
Slide 10: Strong Wealth Management Capabilities
Private Banking $770MM in private banking loans and deposits 2,750+ relationships Growth opportunities from shale-related private wealth management Expansion in Kentucky, Indiana, and Mid-Atlantic Strong Wealth Management Capabilities Note: assets, loans, deposits, and clients as of 12/31/2019; char
Slide 11: Focus on Positive Operating Leverage
Focus on Positive Operating Leverage 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 year-to-date (YTD)
Slide 12: Long-Term Funding and Growth Advantages
Pennsylvania Long-Term Funding and Growth Advantages Source: demographic data pulled April 2018 (source: S&P Global Market Intelligence); Marcellus & Utica shale data from US Department of Energy and PA Department of Community and Economic Development Columbus Morgantown Charleston Huntington ? Shal
Slide 13: Technology to Drive Revenue and Save Costs
Online deposit account opening Technology to Drive Revenue and Save Costs P-to-P payments Scalable infrastructure Residential & small business online loan applications “Thin-client” technology Online budgeting tools >50% of back-office and support staffs in Wheeling
Slide 14: Franchise Expansion
Franchise Expansion Targeted acquisitions in existing markets and new higher-growth metro areas Critical, long-term focus on shareholder return Strong capital and liquidity, along with strong regulatory compliance processes, provides ability to execute transactions quickly Diligent efforts to mainta
Slide 15: Strategies for Mid-Atlantic Market Success
Strategies for Mid-Atlantic Market Success Key leadership and talent retained High-growth market with good demographics Washington D.C. and Baltimore are the 5th and 19th largest MSAs, respectively Strong employment, household income, and projected population growth Median household incomes are 30-6
Slide 16: Financial Overview
~~ WesBanco By all accounts, better. Financial Overview
Slide 17: Financial Performance Summary
Financial Performance Summary (Non-GAAP) excludes after-tax merger-related expenses represent annualized net loan charge-offs as percentage of average loans Note: please see the reconciliations to GAAP results in the appendix; Old Line Bancshares merger closed November 2019; Farmers Capital Bank Cor
Slide 18: Financial and Operational Highlights – Q4 2019
Note: financial data as of quarter ending 12/31/2019, and compared to the quarter ending 12/31/2018; certain costs excludes after-tax merger-related expenses; please see the reconciliations to GAAP results in the appendix Financial and Operational Highlights – Q4 2019 Execution of fundamental strate
Slide 19: Benefits of Core Deposit Funding Advantage
Benefits of Core Deposit Funding Advantage Robust legacy deposit base, enhanced by shale energy-related royalties, provides funding advantage in Mid-Atlantic market During the last five years: Total deposits (excluding CDs) have grown organically at a 3% CAGR Total demand deposits have grown organic
Slide 20: Risk Management and Regulatory Compliance
Strong legacy of credit and risk management Based upon conservative underwriting standards and approval processes Centralized back-office and loan funding functions Mature enterprise risk management program headed by Chief Risk Officer addressing key risks in all business lines and functional areas
Slide 21: Strong Legacy of Credit Quality
Favorable asset quality measures compared to all U.S. banks with total assets from $10B to 25B Loan Loss Allowance as % of Total Loans Strong Legacy of Credit Quality Note: financial data as of quarter ending 12/31; current year data as of 12/31/2019; please see the reconciliations in the appendix;
Slide 22: Favorable Operating Metrics
Favorable Operating Metrics Disciplined execution upon growth strategies providing strong performance compared to all U.S. banks with total assets from $10B to 25B Note: financial data as of 12/31 YTD; current YTD data as of 12/31/2019; please see the reconciliations in the appendix; bank group incl
Slide 23: Returning Value to Shareholders
Returning Value to Shareholders Focus on appropriate capital allocation to provide financial flexibility while continuing to enhance shareholder value through earnings growth and effective capital management Capital management strategy: acquisitions, dividends, share repurchases Q4 2019 dividend pay
Slide 24: Appendix
~~ WesBanco By all accounts, better. Appendix
Slide 25: Net Interest Margin
Year-to-date NIM reflects the benefit to asset yields from the increases in the Federal Reserve Board’s target federal funds rate during 2018, the higher margin Farmers Capital acquired net earning assets, and higher purchase accounting As a slightly asset sensitive bank, not immune from the factors
Slide 26: Financial Performance Summary Trend – Annual
Financial Performance Summary Trend – Annual Efficiency Ratio (1) Net Income (1) ($MM) (1) excludes merger-related expenses and net deferred tax asset revaluation (as applicable) Note: please see the reconciliations to GAAP results in the appendix; Old Line Bancshares merger closed November 2019; Fa
Slide 27: Reconciliation: Efficiency Ratio & Operating Leverage
Reconciliation: Efficiency Ratio & Operating Leverage 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 Corporatio
Slide 28: Reconciliation: Net Income and EPS (Diluted)
Reconciliation: Net Income and EPS (Diluted) Note: Old Line Bancshares merger closed November 2019; Farmers Capital Bank Corporation merger closed August 2018; First Sentry Bancshares merger closed April 2018; Your Community Bankshares merger closed September 2016; ESB Financial merger closed Februa
Slide 29: Reconciliation: Return on Average Assets
(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 closed April 2018; Your Community Bankshares merger closed September 2016; ESB Fin
Slide 30: Reconciliation: Return on Average Tangible Equity
(1) three-, six-, and nine-month (as applicable) figures are annualized; amortization of intangibles tax effected at 21% for 2018 forward, and 35% for all prior periods Note: Old Line Bancshares merger closed November 2019; Farmers Capital Bank Corporation merger closed August 2018; First Sentry Ban