Wesbanco, Inc. · NASDAQ:WSBC
Wesbanco — Investor Presentation (February 2022)
31 slides from Wesbanco's investor presentation, Feb 15, 2022
Slide 1: Investor Presentation (Q1 2022)
John Iannone Senior Vice President, Investor & Public Relations 304-905-7021 Investor Presentation (Q1 2022) (WSBC financials as of the three months ended 31 December 2021)
Slide 2: Non-GAAP and forward-looking statements
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 pre-tax pre-provision income, tangible common equity/tangible
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, $5.6B 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 treasury management, foreign exchange, cyber security, and lockbox services Strong
Slide 8: Strong Wealth Management Capabilities
Private Banking $1.0B in private banking loans and deposits 3,650+ relationships Legacy market private wealth management growth opportunities Strong Wealth Management Capabilities Note: assets, loans, deposits, and clients as of 12/31/2021; chart financials as of 12/31 unless otherwise stated $100 $
Slide 9: Digital banking utilization
Digital banking utilization ~70% of retail customers utilize online digital banking services ~4.1 million web and mobile logins per month Mobile ~50% of total, with an average of 19 monthly logins per customer Mobile wallet & mobile deposits increased ~60% & ~15% YoY, respectively Zelle® payment ser
Slide 10: Benefits of Core Deposit Funding Advantage
Benefits of Core Deposit Funding Advantage Robust legacy deposit base provides funding advantage in the Mid-Atlantic market Reflecting the significantly lower interest rate environment, aggressively reduced deposit rates since March 2020 During the last five years: Total deposits (excluding CDs) hav
Slide 11: Franchise Expansion
Franchise Expansion Targeted acquisitions in existing markets and new higher-growth metro areas Long-term focus on appropriate capital management to enhance shareholder value Strong capital and liquidity, along with strong regulatory compliance processes, provides ability to execute transactions qui
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 12/31/2
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: Recent Successes and Accolades
Recent Successes and Accolades WesBanco Bank was again named one of the ten Best Banks in America by Forbes – coming in as the 10th best bank, as well as the third year in a row in the top 12 For the second consecutive year, named to Newsweek magazine's ranking of America's Best Banks, recognizing t
Slide 15: Financial Overview
WesBane By all accounts, better. Financial Overview
Slide 16: Q4 2021 Financial and Operational Highlights
Q4 2021 Financial and Operational Highlights Note: financial and operational highlights during the quarter ended December 31, 2021 (1) Non-GAAP measure – please see reconciliation in appendix Solid pre-tax, pre-provision income and net income (excluding restructuring & merger-related expenses) Conti
Slide 17: Q4 2021 Total Portfolio Loans
Q4 2021 Total Portfolio Loans ($MM) Loan growth for Q4 2021 reflects the continuation of both SBA PPP loan forgiveness and elevated commercial real estate payoffs ~1,950 SBA PPP loans remaining total ~$163 million (as of 12/31/2021) During Q4 2021, ~1,240 customers received forgiveness of SBA PPP lo
Slide 18: Q4 2021 Net Interest Margin (NIM)
Q4 2021 Net Interest Margin (NIM) 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, 12/31/2021 investment securities increased $1.3 billion year-over-year, to represent ~24%
Slide 19: Q4 2021 Non-Interest Income
Q4 2021 Non-Interest Income Trust fees increased primarily from net organic growth in trust assets under management ($5.6 billion) Service charges on deposits were higher due to increased general consumer spending, resulting in higher eligible account fees Mortgage banking income decreased due to ho
Slide 20: Q4 2021 Non-Interest Expense
Q4 2021 Non-Interest Expense Salaries and wages increased due to higher employee commissions and lower loan contra-costs Base salary expenses decreased $1.7 million and bonus and stock compensation expense decreased $0.6 million, year-over-year Equipment and software increased due primarily to the m
Slide 21: 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 comparability impacted by timing of the adoption of CECL accounting standard and economic assumptions used by each bank) No
Slide 22: 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 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: dividends, share repurchases, acquisitions Q4 2021 dividend yie
Slide 24: Appendix
w W WesBanco By all accounts, better. Appendix
Slide 25: Q4 2021 Key Metrics
Q4 2021 Key Metrics 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 pending resolution of a lawsuit, excl
Slide 26: Q4 2021 Current Expected Credit Loss (CECL)
The decrease in the allowance was primarily driven by improvements in the COVID-19 pandemic related adjustments These improvements resulted in a negative provision for credit losses of $13.6 million Allowance coverage ratio of 1.25%, or, excluding SBA PPP loans, 1.27% Excludes fair market value adju
Slide 27: 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 28: Reconciliation: Pre-Tax, Pre-Provision Income (PTPP) and Ratios
Reconciliation: Pre-Tax, Pre-Provision Income (PTPP) and Ratios
Slide 29: 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 30: 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 31: Reconciliation: Return on Average Tangible Equity
(1) amortization of intangibles tax effected at 21% for 2018 forward, and 35% for all prior periods 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 Augus