Wesbanco, Inc. · NASDAQ:WSBC
Wesbanco — Q2 2021 Earnings Presentation
17 slides from Wesbanco's earnings presentation, Jul 27, 2021
Slide 1: Second Quarter 2021 Earnings Call Presentation
27 July 2021 Second 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: Q2 2021 Financial and Operational Highlights
Q2 2021 Financial and Operational Highlights 2 Note: financial and operational highlights during the quarter ended June 30, 2021; loan growth includes approximately $544 million of loans funded through the Small Business Administration’s Paycheck Protection Program (“SBA PPP”), as established by the
Slide 4: Key Metrics
Q2 2021 Key Metrics 3 Note: PTPP = pre-tax, pre-provision Non-GAAP measure – please see reconciliation in appendix Excludes restructuring and merger-related expenses
Slide 5: Total Portfolio Loans
Q2 2021 Total Portfolio Loans ($MM) 4 ~6,190 SBA PPP loans remaining total ~$544 million (as of 6/30/2021) During Q2 2021, ~2,320 customers applied for and received forgiveness of their round 1 and 2 SBA PPP loans totaling $327 million (~$116 million of which were loans >$2 million) C&I loan levels
Slide 6: Net Interest Margin (NIM)
Q2 2021 Net Interest Margin (NIM) 5 NIM negatively impacted by the low interest rate environment, and a mix shift of higher securities as a percentage of total assets As a result of higher cash balances, 6/30/2021 investment securities increased $1.0 billion year-over-year and ~$0.3 billion sequenti
Slide 7: Non-Interest Income
Q2 2021 Non-Interest Income 6 The net gain on OREO & other assets of $4.0 million was due to a gain earned on an investment made by WSBC’s Community Development Corporation in a start-up firm more than ten years ago that was recently acquired by a public company Electronic banking fees increased due
Slide 8: Non-Interest Expense
Q2 2021 Non-Interest Expense 7 Total operating expenses remained well-controlled through company-wide efforts to manage certain open positions and discretionary expenses Year-to-date efficiency ratio improved 129bp year-over-year to 55.33% Equipment and software expense increased due to increased as
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: Q2 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 $21.0 million Allowance coverage ratio of 1.36%, or, excluding SBA PPP loans, 1.43% Excl
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 1.5 million shares of WesBanco common stock on the open market during Q2 2021 Repurchases represented ~45% of existing share repur
Slide 12: 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