WesBanco Announces First Quarter 2024 Financial Results

Published

Deposit growth outpaces strong sequential quarter loan growth

WHEELING, W.Va., April 23, 2024 /PRNewswire/ -- WesBanco, Inc. ("WesBanco") (Nasdaq: WSBC), a diversified, multi-state bank holding company, today announced net income and related earnings per share for the three months ended March 31, 2024. Net income available to common shareholders for the first quarter of 2024 was $33.2 million, with diluted earnings per share of $0.56, compared to $39.8 million and $0.67 per diluted share, respectively, for the first quarter of 2023. As noted in the following table, net income available to common shareholders, excluding after-tax restructuring and merger-related expenses, for the three months ended March 31, 2024 was $33.2 million, or $0.56 per diluted share, as compared to $42.3 million, or $0.71 per diluted share (non-GAAP measures).

WesBanco Logo (PRNewsfoto/WesBanco, Inc.)

For the Three Months Ended March 31,

2024

2023

(unaudited, dollars in thousands,

except per share amounts)

Net Income

DilutedEarningsPer Share

Net Income

DilutedEarningsPer Share

Net income available to common shareholders (Non-GAAP)(1)

$           33,162

$               0.56

$           42,301

$               0.71

Less: After-tax restructuring and merger-related expenses

-

-

(2,491)

(0.04)

Net income available to common shareholders (GAAP)

$           33,162

$               0.56

$           39,810

$               0.67

(1) See non-GAAP financial measures for additional information relating to the calculation of these items.

Financial and operational highlights during the quarter ended March 31, 2024:

  • Deposits of $13.5 billion increased 4.8% year-over-year and 2.5% quarter-over-quarter
    • Average loans to average deposits were 88.7%, providing continued capacity to fund loan growth
    • Solid sequential quarter deposit growth allowed for both the funding of loan growth and the pay-down of Federal Home Loan Bank borrowings
  • Total loan growth was 9.0% year-over-year and 2.0% quarter-over-quarter, or 8.1% annualized
    • Total loans are up $1.0 billion as compared to the prior year period
  • Non-interest income increased 10.8% year-over-year, supported by new commercial loan swap and wealth management fees
    • Trust assets increased to $5.6 billion, driven by both market value adjustments and organic growth
  • Non-interest expense declined sequentially due to management of staffing levels and marketing costs
  • Key credit quality metrics such as non-performing assets, total past due loans, and net loan charge-offs, as percentages of total portfolio loans, have remained at low levels and favorable to peer bank averages (based upon the prior four quarters for banks with total assets between $10 billion and $25 billion)
  • WesBanco continues to earn national accolades, most recently Forbes' America's Best Banks 2024

"WesBanco's first quarter results marked a strong start to 2024. We grew loans and deposits while smartly managing borrowings, controlling costs, and advancing our efforts to diversify revenue streams and drive non-interest income," said Jeff Jackson, President and Chief Executive Officer, WesBanco. "Our commitment to customer service, sustainable growth strategies, and strong credit quality earned us yet another national accolade this quarter. With this solid start to the year and the continued strength of our teams, markets, and strategies, we are well-positioned to continue delivering value for our shareholders."

Balance SheetAs of March 31, 2024, total portfolio loans were $11.9 billion, which increased $1.0 billion, or 9.0%, year-over-year driven by strong performance from our commercial and residential lending teams. Total commercial loans of $8.4 billion increased 9.3% year-over-year and 9.8% quarter-over-quarter annualized. Commercial loan growth continues to reflect the benefit of our commercial banker hiring and loan production office strategies, as well as lower commercial real estate payoffs of $63 million for the quarter, compared to an anticipated annual level in the $500 million range within a more normal operating environment. The commercial pipeline was a record $1.2 billion at March 31, 2024, with substantial generation from the four new loan production offices.

Total deposits, as of March 31, 2024, were $13.5 billion, up 4.8% from March 31, 2023 and up 2.5% from December 31, 2023, reflecting the benefit of deposit gathering and retention efforts by our retail and commercial teams. The composition of total deposits continues to have some mix shift, reflecting the impact of the significant increase in the federal funds rate; however, total demand deposits continue to represent 55% of total deposits, with the non-interest bearing component representing 29%, which remains consistent with the percentage range prior to the pandemic.

Credit QualityAs of March 31, 2024, total loans past due, criticized and classified loans, non-performing loans, and non-performing assets as percentages of the loan portfolio and total assets have remained low, from a historical perspective, and within a consistent range through the last two years. Total loans past due as a percent of the loan portfolio increased 4 basis points from the prior year but declined 8 basis points sequentially. Criticized and classified loans as a percent of the loan portfolio increased 8 basis points quarter-over-quarter to 2.30%, while non-performing assets as a percentage of total assets increased 3 basis points to 0.19% but were down 5 basis points from the prior year period. Net charge-offs of $5.9 million primarily reflect a single borrower with loans totaling $4.8 million. The allowance for credit losses to total portfolio loans at March 31, 2024 decreased slightly, as compared to the fourth quarter, to 1.09% of total loans, or $129.2 million. Excluded from the allowance for credit losses and related coverage ratio are fair market value adjustments on previously acquired loans representing 0.11% of total loans.

Net Interest Margin and IncomeAs anticipated, the net interest margin of 2.92% for the first quarter of 2024 decreased 10 basis points sequentially and 44 basis points year-over-year primarily due to higher funding costs from increasing deposit costs and associated remix from non-interest bearing deposits into higher tier money market and certificate of deposit accounts. Total deposit funding costs were 256 basis points for the first quarter of 2024, and, when including non-interest deposits, total deposit funding costs were 181 basis points. Accretion from acquisitions benefited the first quarter net interest margin by 3 basis points, as compared to 4 basis points in the prior year period.

First quarter net interest income of $114.0 million decreased $10.4 million, or 8.3%, year-over-year, reflecting the impact of rising rates on funding costs more than offsetting higher loan and securities yields and loan growth.

Non-Interest IncomeFor the first quarter of 2024, non-interest income of $30.6 million increased $3.0 million, or 10.8%, from the first quarter of 2023. This increase was primarily due to net swap fee and valuation income, service charges on deposits, and trust fees. The net swap fee and valuation income of $1.6 million reflects $0.8 million of new swap fees and net fair value adjustments of $0.8 million, as compared to $1.8 million and negative $1.0 million, respectively, in the prior year period. Service charges on deposits increased $0.6 million year-over-year, reflecting fee income from new products and services and increased general consumer spending. Trust fees, which are seasonally higher during the first quarter, increased $0.6 million year-over-year due to an 11.4% increase in trust assets, driven by both market value adjustments and organic growth.

Non-Interest ExpenseNon-interest expense, excluding restructuring and merger-related costs, for the three months ended March 31, 2024 were $97.2 million, a $4.2 million increase year-over-year but a $2.3 million decrease sequentially, which reflects lower quarterly average staffing levels and the timing of marketing campaigns. The year-over-year increase was primarily driven by increases in other operating expenses, salaries and wages, and equipment and software expenses. Other operating expenses increased $2.2 million primarily due to higher costs and fees in support of loan growth and higher miscellaneous taxes and expenses. Salaries and wages increased $1.0 million compared to the prior year period due to higher salary expense related to annual merit increases and new revenue-producing hires, mainly commercial lenders during the past year, partially offset by efficiency improvements in the mortgage and branch staffing models. Equipment and software expense increased $0.9 million due to the planned upgrade of our ATM fleet with the latest technology and general inflationary cost increases for existing service agreements.

CapitalWesBanco continues to maintain what we believe are strong regulatory capital ratios, as both consolidated and bank-level regulatory capital ratios are well above the applicable "well-capitalized" standards promulgated by bank regulators and the BASEL III capital standards. At March 31, 2024, Tier I leverage was 9.79%, Tier I risk-based capital ratio was 11.87%, common equity Tier 1 capital ratio ("CET 1") was 10.84%, and total risk-based capital was 14.76%. In addition, the tangible common equity to tangible assets ratio improved to 7.63%.

Conference Call and WebcastWesBanco will host a conference call to discuss the Company's financial results for the first quarter of 2024 at 10:00 a.m. ET on Wednesday, April 24, 2024. Interested parties can access the live webcast of the conference call through the Investor Relations section of the Company's website, www.wesbanco.com. Participants can also listen to the conference call by dialing 888-347-6607, 855-669-9657 for Canadian callers, or 412-902-4290 for international callers, and asking to be joined into the WesBanco call. Please log in or dial in at least 10 minutes prior to the start time to ensure a connection.

A replay of the conference call will be available by dialing 877-344-7529, 855-669-9658 for Canadian callers, or 412-317-0088 for international callers, and providing the access code of 7101399. The replay will begin at approximately 12:00 p.m. ET on April 24, 2024 and end at 12 a.m. ET on May 8, 2024. An archive of the webcast will be available for one year on the Investor Relations section of the Company's website (www.wesbanco.com).

Forward-Looking StatementsForward-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 be read in conjunction with WesBanco's Form 10-K for the year ended December 31, 2023 and documents subsequently filed by WesBanco with the Securities and Exchange Commission ("SEC"), which are available at the SEC's website, www.sec.gov or at WesBanco's website, www.WesBanco.com. Investors are cautioned that forward-looking statements, which are not historical fact, involve risks and uncertainties, including those detailed in WesBanco's most recent Annual Report on Form 10-K filed with the SEC under "Risk Factors" in Part I, Item 1A. Such statements are subject to important factors that could cause actual results to differ materially from those contemplated by such statements, including, without limitation, the effects of changing regional and national economic conditions, changes in interest rates, spreads on earning assets and interest-bearing liabilities, and associated interest rate sensitivity; sources of liquidity available to WesBanco and its related subsidiary operations; potential future credit losses and the credit risk of commercial, real estate, and consumer loan customers and their borrowing activities; actions of the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Consumer Financial Protection Bureau, the SEC, the Financial Institution Regulatory Authority, the Municipal Securities Rulemaking Board, the Securities Investors Protection Corporation, and other regulatory bodies; potential legislative and federal and state regulatory actions and reform, including, without limitation, the impact of the implementation of the Dodd-Frank Act; adverse decisions of federal and state courts; fraud, scams and schemes of third parties; cyber-security breaches; competitive conditions in the financial services industry; rapidly changing technology affecting financial services; marketability of debt instruments and corresponding impact on fair value adjustments; and/or other external developments materially impacting WesBanco's operational and financial performance. WesBanco does not assume any duty to update forward-looking statements.

Non-GAAP Financial MeasuresIn 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 assets; net income excluding after-tax restructuring and merger-related expenses; efficiency ratio; return on average assets; and return on average tangible equity. WesBanco believes these financial measures provide information useful to investors in understanding our operational performance and business and performance trends which facilitate comparisons with the performance of others in the financial services industry. Although WesBanco believes that these non-GAAP financial measures enhance investors' understanding of WesBanco's business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. The non-GAAP financial measures contained therein should be read in conjunction with the audited financial statements and analysis as presented in the Annual Report on Form 10-K as well as the unaudited financial statements and analyses as presented in the Quarterly Reports on Forms 10-Q for WesBanco and its subsidiaries, as well as other filings that the company has made with the SEC.

About WesBanco, Inc.Founded in 1870, Wesbanco, Inc. is a diversified and balanced financial services company that delivers large bank capabilities with a community bank feel. Our distinct long-term growth strategies are built upon unique sustainable advantages permitting us to span six states with meaningful market share. The company's banking subsidiary, Wesbanco Bank, Inc., operates more than 190 financial centers in the states of Indiana, Kentucky, Maryland, Ohio, Pennsylvania, and West Virginia. Built upon our 'Better Banking Pledge', our customer-centric service culture is focused on growing long-term relationships by pledging to serve all personal and business customer needs efficiently and effectively. In addition to a full range of online and mobile banking options and a full-suite of commercial products and services, the company provides trust, wealth management, securities brokerage, and private banking services through its century-old Trust and Investment Services department, with approximately $5.6 billion of assets under management (as of March 31, 2024). The company also offers insurance and brokerage services through its affiliates and subsidiaries. Learn more at www.wesbanco.com and follow us on Facebook, LinkedIn and X, formerly Twitter.

WESBANCO, INC.

Consolidated Selected Financial Highlights

Page 5

(unaudited, dollars in thousands, except shares and per share amounts)

For the Three Months Ended

Statement of Income

March 31,

Interest and dividend income

2024

2023

% Change

Loans, including fees

$         166,974

$         133,406

25.2

Interest and dividends on securities:

Taxable 

17,404

19,086

(8.8)

Tax-exempt

4,586

4,790

(4.3)

Total interest and dividends on securities

21,990

23,876

(7.9)

Other interest income 

6,369

3,273

94.6

          Total interest and dividend income

195,333

160,555

21.7

Interest expense

Interest bearing demand deposits

25,590

11,106

130.4

Money market deposits

16,114

4,252

279.0

Savings deposits

7,667

4,000

91.7

Certificates of deposit

10,247

1,203

751.8

Total interest expense on deposits

59,618

20,561

190.0

Federal Home Loan Bank borrowings

17,000

11,300

50.4

Other short-term borrowings

674

418

61.2

Subordinated debt and junior subordinated debt 

4,075

3,944

3.3

Total interest expense

81,367

36,223

124.6

Net interest income 

113,966

124,332

(8.3)

Provision for credit losses

4,014

3,577

12.2

Net interest income after provision for credit losses

109,952

120,755

(8.9)

Non-interest income

Trust fees

8,082

7,494

7.8

Service charges on deposits

6,784

6,170

10.0

Digital banking income

4,704

4,605

2.1

Net swap fee and valuation income 

1,563

799

95.6

Net securities brokerage revenue

2,548

2,576

(1.1)

Bank-owned life insurance

2,067

1,959

5.5

Mortgage banking income

693

426

62.7

Net securities gains

537

145

270.3

Net gains on other real estate owned and other assets

154

232

(33.6)

Other income

3,497

3,247

7.7

Total non-interest income

30,629

27,653

10.8

Non-interest expense

Salaries and wages

42,997

41,952

2.5

Employee benefits

12,184

12,060

1.0

Net occupancy

6,623

6,643

(0.3)

Equipment and software

10,008

9,063

10.4

Marketing

1,885

2,325

(18.9)

FDIC insurance 

3,448

2,884

19.6

Amortization of intangible assets

2,092

2,301

(9.1)

Restructuring and merger-related expense

-

3,153

(100.0)

Other operating expenses  

17,954

15,744

14.0

Total non-interest expense

97,191

96,125

1.1

Income before provision for income taxes

43,390

52,283

(17.0)

Provision for income taxes 

7,697

9,942

(22.6)

Net Income

35,693

42,341

(15.7)

Preferred stock dividends

2,531

2,531

-

Net income available to common shareholders

$           33,162

$           39,810

(16.7)

Taxable equivalent net interest income

$        115,185

$        125,605

(8.3)

Per common share data

Net income per common share - basic

$               0.56

$               0.67

(16.4)

Net income per common share - diluted

0.56

0.67

(16.4)

Net income per common share - diluted, excluding certain items (1)(2)

0.56

0.71

(21.1)

Dividends declared

0.36

0.35

2.9

Book value (period end)

40.30

39.34

2.4

Tangible book value (period end) (1)

21.39

20.27

5.5

Average common shares outstanding - basic

59,382,758

59,217,711

0.3

Average common shares outstanding - diluted

59,523,679

59,375,053

0.3

Period end common shares outstanding

59,395,777

59,246,569

0.3

Period end preferred shares outstanding

150,000

150,000

-

(1) See non-GAAP financial measures for additional information relating to the calculation of this item.

(2) Certain items excluded from the calculation consist of after-tax restructuring and merger-related expenses.

 

WESBANCO, INC.

Consolidated Selected Financial Highlights

Page 6

(unaudited, dollars in thousands, unless otherwise noted)

Selected ratios

For the Three Months Ended

March 31,

2024

2023

% Change

Return on average assets

0.75

%

0.95

%

(21.05)

%

Return on average assets, excluding

    after-tax restructuring and merger-related expenses (1)

0.75

1.01

(25.74)

Return on average equity

5.24

6.57

(20.24)

Return on average equity, excluding

    after-tax restructuring and merger-related expenses (1)

5.24

6.98

(24.93)

Return on average tangible equity (1)

9.85

12.72

(22.56)

Return on average tangible equity, excluding 

    after-tax restructuring and merger-related expenses (1)

9.85

13.48

(26.93)

Return on average tangible common equity (1)

10.96

14.28

(23.25)

Return on average tangible common equity, excluding 

    after-tax restructuring and merger-related expenses (1)

10.96

15.13

(27.56)

Yield on earning assets (2) 

4.98

4.32

15.28

Cost of interest bearing liabilities

2.98

1.52

96.05

Net interest spread (2)

2.00

2.80

(28.57)

Net interest margin (2)

2.92

3.36

(13.10)

Efficiency (1) (2)

66.65

60.66

9.87

Average loans to average deposits

88.67

83.46

6.24

Annualized net loan charge-offs/average loans

0.20

0.07

185.71

Effective income tax rate 

17.74

19.02

(6.73)

For the Three Months Ended

Mar. 31,

Dec. 31,

Sept. 30,

June 30,

Mar. 31,

2024

2023

2023

2023

2023

Return on average assets

0.75

%

0.74

%

0.78

%

0.98

%

0.95

%

Return on average assets, excluding

    after-tax restructuring and merger-related expenses (1)

0.75

0.74

0.80

0.98

1.01

Return on average equity

5.24

5.21

5.49

6.81

6.57

Return on average equity, excluding

    after-tax restructuring and merger-related expenses (1)

5.24

5.21

5.57

6.82

6.98

Return on average tangible equity (1)

9.85

10.11

10.60

12.98

12.72

Return on average tangible equity, excluding 

    after-tax restructuring and merger-related expenses (1)

9.85

10.11

10.75

12.99

13.48

Return on average tangible common equity (1)

10.96

11.32

11.87

14.52

14.28

Return on average tangible common equity, excluding 

    after-tax restructuring and merger-related expenses (1)

10.96

11.32

12.03

14.53

15.13

Yield on earning assets (2) 

4.98

4.88

4.72

4.59

4.32

Cost of interest bearing liabilities

2.98

2.76

2.52

2.15

1.52

Net interest spread (2)

2.00

2.12

2.20

2.44

2.80

Net interest margin (2)

2.92

3.02

3.03

3.18

3.36

Efficiency (1) (2) 

66.65

66.75

64.95

62.33

60.66

Average loans to average deposits

88.67

87.07

86.79

85.44

83.46

Annualized net loan charge-offs and recoveries /average loans

0.20

0.06

0.01

0.02

0.07

Effective income tax rate 

17.74

19.66

16.83

16.80

19.02

Trust assets, market value at period end ($MM)

$            5,601

$            5,360

$            4,982

$            5,127

$            5,026

Securities brokerage account value (includes annuities) ($MM)

$            1,751

$            1,686

$            1,600

$            1,596

$            1,551

(1) See non-GAAP financial measures for additional information relating to the calculation of this item.

(2) The yield on earning assets, net interest margin, net interest spread and efficiency ratios are presented on a fully 

    taxable-equivalent (FTE) and annualized basis. The FTE basis adjusts for the tax benefit of income on certain tax-exempt 

   loans and investments.   WesBanco believes this measure to be the preferred industry measurement of net interest income and

   provides a relevant comparison between taxable and non-taxable amounts.

$MM = in millions

 

WESBANCO, INC.

Consolidated Selected Financial Highlights

Page 7

(unaudited, dollars in thousands, except shares)

% Change

Balance sheet

March 31,

December 31,

December 31, 2023

Assets

2024

2023

% Change

2023

to March 31, 2024

Cash and due from banks

$         138,940

$         152,756

(9.0)

$           158,504

(12.3)

Due from banks - interest bearing

370,729

444,747

(16.6)

436,879

(15.1)

Securities:

Equity securities, at fair value

13,074

11,843

10.4

12,320

6.1

Available-for-sale debt securities, at fair value

2,119,272

2,465,996

(14.1)

2,194,329

(3.4)

Held-to-maturity debt securities (fair values of $1,052,444; $1,107,685

and $1,069,159, respectively)

1,190,010

1,239,247

(4.0)

1,199,527

(0.8)

Allowance for credit losses, held-to-maturity debt securities

(183)

(212)

13.7

(192)

4.7

Net held-to-maturity debt securities

1,189,827

1,239,035

(4.0)

1,199,335

(0.8)

Total securities

3,322,173

3,716,874

(10.6)

3,405,984

(2.5)

Loans held for sale

12,472

12,722

(2.0)

16,354

(23.7)

Portfolio loans:

Commercial real estate

6,754,933

6,197,844

9.0

6,565,448

2.9

Commercial and industrial

1,683,172

1,519,808

10.7

1,670,659

0.7

Residential real estate

2,469,357

2,251,423

9.7

2,438,574

1.3

Home equity

740,973

692,001

7.1

734,219

0.9

Consumer

224,732

227,612

(1.3)

229,561

(2.1)

Total portfolio loans, net of unearned income

11,873,167

10,888,688

9.0

11,638,461

2.0

Allowance for credit losses - loans

(129,190)

(118,698)

(8.8)

(130,675)

1.1

Net portfolio loans

11,743,977

10,769,990

9.0

11,507,786

2.1

Premises and equipment, net

232,630

224,940

3.4

233,571

(0.4)

Accrued interest receivable

78,564

69,232

13.5

77,435

1.5

Goodwill and other intangible assets, net

1,130,175

1,139,054

(0.8)

1,132,267

(0.2)

Bank-owned life insurance

357,099

354,320

0.8

355,033

0.6

Other assets

385,976

389,991

(1.0)

388,561

(0.7)

Total Assets

$    17,772,735

$    17,274,626

2.9

$      17,712,374

0.3

Liabilities

Deposits:

Non-interest bearing demand

$      3,938,610

$      4,478,954

(12.1)

$        3,962,592

(0.6)

Interest bearing demand

3,529,691

3,107,112

13.6

3,463,443

1.9

Money market

2,189,769

1,618,204

35.3

2,017,713

8.5

Savings deposits

2,499,466

2,784,780

(10.2)

2,493,254

0.2

Certificates of deposit

1,339,237

884,146

51.5

1,231,702

8.7

Total deposits

13,496,773

12,873,196

4.8

13,168,704

2.5

Federal Home Loan Bank borrowings

1,100,000

1,280,000

(14.1)

1,350,000

(18.5)

Other short-term borrowings

72,935

111,176

(34.4)

105,893

(31.1)

Subordinated debt and junior subordinated debt

279,136

281,629

(0.9)

279,078

0.0

Total borrowings

1,452,071

1,672,805

(13.2)

1,734,971

(16.3)

Accrued interest payable

15,929

7,669

107.7

11,121

43.2

Other liabilities

269,600

245,499

9.8

264,516

1.9

Total Liabilities

15,234,373

14,799,169

2.9

15,179,312

0.4

Shareholders' Equity

Preferred stock, no par value; 1,000,000 shares authorized; 150,000 shares

6.75% non-cumulative perpetual preferred stock, Series A, liquidation

preference $150.0 million, issued and outstanding, respectively

144,484

144,484

-

144,484

-

Common stock, $2.0833 par value; 100,000,000 shares authorized;

68,081,306 shares issued; 59,395,777, 59,246,569 and 59,376,435

shares outstanding, respectively

141,834

141,834

-

141,834

-

Capital surplus

1,636,964

1,636,061

0.1

1,635,859

0.1

Retained earnings

1,154,307

1,096,924

5.2

1,142,586

1.0

Treasury stock (8,685,529, 8,834,737 and 8,704,871 shares - at cost, respectively)

(302,264)

(307,507)

1.7

(302,995)

0.2

Accumulated other comprehensive loss

(234,922)

(234,399)

(0.2)

(226,693)

(3.6)

Deferred benefits for directors

(2,041)

(1,940)

(5.2)

(2,013)

(1.4)

Total Shareholders' Equity

2,538,362

2,475,457

2.5

2,533,062

0.2

Total Liabilities and Shareholders' Equity

$    17,772,735

$    17,274,626

2.9

$      17,712,374

0.3

 

WESBANCO, INC.

Consolidated Selected Financial Highlights

Page 8

(unaudited, dollars in thousands)

Average balance sheet and

net interest margin analysis

For the Three Months Ended March 31,

2024

2023

Average

Average

Average

Average

Assets

Balance

Rate

Balance

Rate

Due from banks - interest bearing

$           375,268

5.70

%

$        279,448

4.29

%

Loans, net of unearned income (1)

11,756,875

5.71

10,750,132

5.03

Securities: (2)

    Taxable

2,928,867

2.39

3,302,081

2.34

    Tax-exempt (3)

759,797

3.07

800,804

3.07

        Total securities

3,688,664

2.53

4,102,885

2.49

Other earning assets

60,920

6.92

45,879

2.82

         Total earning assets (3)

15,881,727

4.98

%

15,178,344

4.32

%

Other assets

1,822,538

1,792,210

Total Assets

$      17,704,265

$   16,970,554

Liabilities and Shareholders' Equity

Interest bearing demand deposits

$        3,501,049

2.94

%

$     3,029,944

1.49

%

Money market accounts

2,087,036

3.11

1,632,738

1.06

Savings deposits

2,480,710

1.24

2,774,741

0.58

Certificates of deposit

1,291,111

3.19

862,703

0.57

    Total interest bearing deposits

9,359,906

2.56

8,300,126

1.00

Federal Home Loan Bank borrowings

1,243,407

5.50

970,000

4.72

Repurchase agreements

92,565

2.93

131,186

1.29

Subordinated debt and junior subordinated debt

279,103

5.87

281,483

5.68

      Total interest bearing liabilities (4)

10,974,981

2.98

%

9,682,795

1.52

%

Non-interest bearing demand deposits

3,898,990

4,580,164

Other liabilities

284,453

249,528

Shareholders' equity

2,545,841

2,458,067

Total Liabilities and Shareholders' Equity

$      17,704,265

$   16,970,554

Taxable equivalent net interest spread

2.00

%

2.80

%

Taxable equivalent net interest margin

2.92

%

3.36

%

(1) Gross of allowance for loan losses and net of unearned income,  Includes non-accrual and loans held for sale.  Loan fees included in interest income on loans were $0.3 million and $0.4million for the three months ended March 31, 2024 and 2023, respectively.  Additionally, loan accretion included in interest income on loans acquired from prior acquisitions was $0.8 millionand $1.3 million for the three months ended March 31, 2024 and 2023, respectively.

(2) Average yields on available-for-sale securities are calculated based on amortized cost.

(3) Taxable equivalent basis is calculated on tax-exempt securities using a rate of 21% for each period presented.

(4) Accretion on interest bearing liabilities acquired from prior acquisitions was $0.1 million and $0.2 million for the three months ended March 31, 2024 and 2023, respectively.

 

WESBANCO, INC.

Consolidated Selected Financial Highlights

 Page 9

(unaudited, dollars in thousands, except shares and per share amounts)

Quarter Ended

Statement of Income

Mar. 31,

Dec. 31,

Sept. 30,

June 30,

Mar. 31,

Interest and dividend income

2024

2023

2023

2023

2023

Loans, including fees

$         166,974

$         162,498

$         155,206

$         145,741

$         133,406

Interest and dividends on securities:

Taxable

17,404

17,798

18,082

18,483

19,086

Tax-exempt

4,586

4,639

4,679

4,723

4,790

Total interest and dividends on securities

21,990

22,437

22,761

23,206

23,876

Other interest income

6,369

6,383

5,622

7,108

3,273

          Total interest and dividend income

195,333

191,318

183,589

176,055

160,555

Interest expense

Interest bearing demand deposits

25,590

23,686

20,873

17,203

11,106

Money market deposits

16,114

14,302

10,841

7,220

4,252

Savings deposits

7,667

7,310

6,699

5,860

4,000

Certificates of deposit

10,247

8,380

5,983

2,906

1,203

Total interest expense on deposits

59,618

53,678

44,396

33,189

20,561

Federal Home Loan Bank borrowings

17,000

14,841

16,463

16,713

11,300

Other short-term borrowings

674

891

745

492

418

Subordinated debt and junior subordinated debt

4,075

4,150

4,303

4,094

3,944

Total interest expense

81,367

73,560

65,907

54,488

36,223

Net interest income

113,966

117,758

117,682

121,567

124,332

Provision for credit losses

4,014

4,803

6,327

3,028

3,577

Net interest income after provision for credit losses

109,952

112,955

111,355

118,539

120,755

Non-interest income

Trust fees

8,082

7,019

6,705

6,918

7,494

Service charges on deposits

6,784

6,989

6,726

6,232

6,170

Digital banking income

4,704

4,890

4,949

5,010

4,605

Net swap fee and valuation income/(loss)

1,563

(345)

3,845

2,612

799

Net securities brokerage revenue

2,548

2,563

2,394

2,523

2,576

Bank-owned life insurance

2,067

3,455

2,398

3,189

1,959

Mortgage banking income

693

650

975

601

426

Net securities gains/(losses)

537

887

(337)

205

145

Net gains/(losses) on other real estate owned and other assets

154

445

(28)

871

232

Other income

3,497

3,521

3,252

3,680

3,247

Total non-interest income

30,629

30,074

30,879

31,841

27,653

Non-interest expense

Salaries and wages

42,997

45,164

45,351

44,471

41,952

Employee benefits

12,184

11,409

11,922

11,511

12,060

Net occupancy

6,623

6,417

6,146

6,132

6,643

Equipment and software

10,008

9,648

9,132

8,823

9,063

Marketing

1,885

2,975

3,115

2,763

2,325

FDIC insurance

3,448

3,369

3,125

2,871

2,884

Amortization of intangible assets

2,092

2,243

2,262

2,282

2,301

Restructuring and merger-related expense

-

-

641

35

3,153

Other operating expenses 

17,954

18,278

16,245

17,549

15,744

Total non-interest expense

97,191

99,503

97,939

96,437

96,125

Income before provision for income taxes

43,390

43,526

44,295

53,943

52,283

Provision for income taxes

7,697

8,558

7,453

9,063

9,942

Net Income

35,693

34,968