Wesbanco, Inc. · NASDAQ:WSBC
Wesbanco — Q3 2024 Earnings Presentation
21 slides from Wesbanco's earnings presentation, Oct 24, 2024
Slide 1: Third Quarter 2024 Earnings Call Presentation
Third Quarter 2024 Earnings Call Presentation 23 October 2024
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: Q3 2024 Financial and Operational Highlights
Q3 2024 Financial and Operational Highlights Strong sequential quarter deposit and loan growth • Continued strong loan growth both year- Net Income Available to Common over-year and quarter-over-quarter, Shareholders and Diluted EPS(1) driven by commercial lending $36.3 million; $0.56/share Total
Slide 4: Key Metrics
Q3 2024 Key Metrics Quarter Ending H / (L) H / (L) Year-to-Date H / (L) 09/30/24 09/30/23 06/30/24 09/30/24 09/30/23 Return on Average Assets (1)(2) 0.79% (1bp) 13bp 0.73% (20bp) PTPP Return on Average Assets (1)(2) 1.12% (5bp) 1bp 1.10% (20bp) Return on Average Equity (1)(2) 5.32% (25bp) 67bp 5.07%
Slide 5: Total Portfolio Loans
Q3 2024 Total Portfolio Loans Total loans up $1.1 billion YoY and $0.8 billion QoQ annualized • +10.0% year-over-year and +1.6% (or +6.3% annualized) quarter-over-quarter Loan growth continues to demonstrate the strength of commercial and residential lending teams and success of our strategies • L
Slide 6: Total Deposits
Q3 2024 Total Deposits Strong sequential quarter deposit growth of 12.1% annualized • Deposits of $13.8 billion were up 5.7% year-over-year and 12.1% annualized quarter-over-quarter, reflecting the success of our summer deposit gathering and retention campaign Strong sequential quarter deposit gro
Slide 7: Total Securities
Q3 2024 Total Securities Securities 18.4% of assets, down 132 basis points year-over-year Equities • Tangible common equity to tangible assets ($MM) 0% ratio improved 158 basis points year-over- Held-to- 95% States & Political Subdivisions year to 8.84% Maturity 5% Other 34% • Weighted average yield
Slide 8: Net Interest Margin (NIM)
Q3 2024 Net Interest Margin (NIM) NIM continues to reflect the high rate environment and deposit remix • Q3 2024 NIM of 2.95% remained flat to the second quarter as higher loan yields balanced higher funding costs Loan yields increased 8 basis points quarter-over-quarter and 47 basis points year-o
Slide 9: Non-Interest Income
Q3 2024 Non-Interest Income Strong trust and securities brokerage fees of $10.2 million • Non-interest income decreased 4.1% year- Quarter Ending % H / (L) % H / (L) over-year due to lower net swap fee and valuation income ($000s) 09/30/24 09/30/23 06/30/24 • Trust fees and net securities brokerage
Slide 10: Non-Interest Expense
Q3 2024 Non-Interest Expense Focused on efficiency gains to support positive operating leverage • Non-interest expense increased year- Quarter Ending % H / (L) % H / (L) over-year due to increases in other ($000s) 09/30/24 09/30/23 06/30/24 operating expenses and equipment and software expenses Sala
Slide 11: Strong Legacy of Credit Quality
Strong Legacy of Credit Quality Favorable asset quality measures compared to peer bank group Criticized & Classified Loans as % of Total Loans Non-Performing Assets as % of Total Assets 0.38% 0.36% 3.40% 0.33% 3.21% 0.31% 3.02% 2.81% 2.22% 2.22% 2.30% 2.15% 2.36% 0.18% 0.16% 0.19% 0.20% 0.17% 9/30/2
Slide 12: Current Expected Credit Loss (CECL)
Q3 2024 Current Expected Credit Loss (CECL) Allowance coverage ratio of 1.13% • The increase in the allowance was primarily driven by higher unemployment assumptions and other qualitative adjustments • During Q3 2024, recorded a provision for credit losses of $4.8 million, as compared to $6.3 millio
Slide 13: Strong Capital Position
Strong Capital Position Capital ratios above both regulatory and well-capitalized levels • Strong regulatory capital ratios significantly above both regulatory requirements and well- capitalized levels, with favorable tangible equity levels compared to peers • As previously disclosed, in conjunction
Slide 14: Appendix
Appendix ©2024 WesBanco Inc. | All rights reserved
Slide 15: Pre-Tax, Pre-Provision Income (PTPP) and Ratios
Reconciliation Pre-Tax, Pre-Provision Income (PTPP) and Ratios Quarter Ending Year-to-Date ($000s) 09/30/24 06/30/24 09/30/23 09/30/24 09/30/23 Income before Provision for Income Taxes $44,773 $35,015 $44,295 $123,177 $150,522 Provision for Credit Losses 4,798 10,541 6,327 19,352 12,932 Pre-Tax, Pre
Slide 16: Net Income and Diluted Earnings per Share (EPS)
Reconciliation Net Income and Diluted Earnings per Share (EPS) Quarter Ending Year-to-Date ($000s, except earnings per share) 09/30/24 06/30/24 09/30/23 09/30/24 09/30/23 Net Income Available to Common Shareholders $34,741 $26,385 $34,311 $94,287 $116,470 Restructuring and Merger-Related Expense (ne
Slide 17: Tangible Book Value per Share
Reconciliation Tangible Book Value per Share Quarter Ending Year-to-Date ($000s, except shares and per share data) 09/30/24 06/30/24 09/30/23 09/30/24 09/30/23 Total Shareholders' Equity $2,801,585 $2,544,279 $2,447,941 $2,801,585 $2,447,941 Goodwill & Other Intangible Assets (net of deferred tax li
Slide 18: Efficiency Ratio
Reconciliation Efficiency Ratio Quarter Ending Year-to-Date ($000s) 09/30/24 06/30/24 09/30/23 09/30/24 09/30/23 Non-Interest Expense $101,183 $102,392 $97,939 $300,768 $290,498 Restructuring & Merger-Related Expense (1,977) (3,777) (641) (5,755) (3,830) Non-Interest Expense (excluding restructuring
Slide 19: Return on Average Assets
Reconciliation Return on Average Assets Quarter Ending Year-to-Date ($000s) 09/30/24 06/30/24 09/30/23 09/30/24 09/30/23 Net Income Available to Common Shareholders $34,741 $26,385 $34,311 $94,287 $116,470 Restructuring and Merger-Related Expenses (net of tax) 1,562 2,984 506 4,546 3,026 Net Income
Slide 20: Return on Average Tangible Equity
Reconciliation Return on Average Tangible Equity Quarter Ending Year-to-Date ($000s) 09/30/24 06/30/24 09/30/23 09/30/24 09/30/23 Net Income Available to Common Shareholders $34,741 $26,385 $34,311 $94,287 $116,470 Amortization of Intangibles (tax effected at 21%) 1,622 1,637 1,787 4,911 5,408 Net I
Slide 21: Tangible Equity to Tangible Assets
Reconciliation Tangible Equity to Tangible Assets Period Ending ($000s) 12/31/07 12/31/08 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 09/30/24 Total Shareholders' Equity $580,319 $659,371 $588,716 $606,863 $63