WesBanco Announces Fourth Quarter 2020 Financial Results

 

Wheeling, WV, January 26, 2021 – WesBanco, Inc. (“WesBanco”) (Nasdaq: WSBC), a diversified, multi-state bank holding company, today announced net income and related earnings per share for the three and twelve months ended December 31, 2020. Net income available to common shareholders for the three months ended December 31, 2020 was $50.2 million, with diluted earnings per share of $0.75, compared to $36.4 million and $0.60 per diluted share, respectively, for the fourth quarter of 2019. For the twelve months ended December 31, 2020, reflecting the impact from the 2020 adoption of the new Current Expected Credit Losses (“CECL”) accounting standard, net income available to common shareholders was $119.4 million, or $1.77 per diluted share, compared to $158.9 million, or $2.83 per diluted share, for the 2019 period. Net income available to common shareholders excluding after-tax restructuring and merger-related expenses for the three months ended December 31, 2020, was $50.6 million, or $0.76 per diluted share, as compared to $45.5 million and $0.75 per diluted share, respectively, in the prior year quarter (non-GAAP measures). On the same basis, net income available to common shareholders for the twelve months ended December 31, 2020 was $127.1 million, or $1.88 per diluted share, as compared to $171.8 million, or $3.06 per diluted share, in the prior year period (non-GAAP measures).

 

 

For the Three Months Ended December 31,

 

 

For the Twelve Months Ended December 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

(unaudited, dollars in thousands,

except per share amounts)

 

Net

Income

 

 

Diluted

Earnings

Per Share

 

 

Net

Income

 

 

Diluted

Earnings

Per Share

 

 

Net Income

Diluted

Earnings

Per Share

 

 

Net

Income

 

 

Diluted

Earnings

Per Share

 

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

$

50,593

 

 

$

0.76

 

 

$

45,478

 

 

$

0.75

 

 

$

127,083

 

 

$

1.88

 

 

$

171,827

 

 

$

3.06

 

Less: After tax restructuring and merger-related expenses (2)

 

(383

)

 

 

(0.01

)

 

 

(9,102

)

 

 

(0.15

)

 

 

(7,683

)

 

 

(0.11

)

 

 

(12,954

)

 

 

(0.23

)

Net income available to common shareholders (GAAP)

$

50,210

 

 

$

0.75

 

 

$

36,376

 

 

$

0.60

 

 

$

119,400

 

 

$

1.77

 

 

$

158,873

 

 

$

2.83

 

(1)

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

(2)

For 2020, after tax merger-related expenses totaled $5.1 million, and after tax restructuring expenses from financial center optimization totaled $2.6 million.

 

On November 22, 2019, WesBanco consummated the merger with Old Line Bancshares, Inc. (“OLBK”), a bank holding company headquartered in Bowie, MD with approximately $3.0 billion in assets, excluding goodwill. Financial results for OLBK have been included in WesBanco’s results from the merger consummation date.

 

WesBanco believes that pre-tax, pre-provision income (non-GAAP measure) provides a more comparable year-over-year measure as it removes the impact of the new CECL accounting standard implemented earlier this year. For the three months ended December 31, 2020, pre-tax, pre-provision income, excluding restructuring and merger-related expenses, increased 14.2% year-over-year to $64.8 million compared to $56.8 million for the prior period. On the same basis, pre-tax, pre-provision income, for the twelve months ended December 31, 2020, increased 18.9% year-over-year to $262.5 million compared to $220.8 million last year. In addition, on the same basis, the return on average assets was 1.56% for the three month and 1.60% for the twelve month periods ending December 31, 2020. WesBanco believes that these non-GAAP financial measures are useful to investors as they enhance investors’ understanding of the Company’s business and performance.

 

Financial and operational highlights during the quarter ended December 31, 2020:

 

WesBanco is a well-capitalized financial institution with solid liquidity and a strong balance sheet

 

Strong year-over-year growth in pre-tax, pre-provision income (non-GAAP measure) for both the quarter and annual periods

 

Total loan growth was 5.1% year-over-year, driven by WesBanco’s support of small businesses impacted by the pandemic

 

o

Total loan growth includes nearly 6,850 loans remaining from the first rounds of the Small Business Administration’s Payroll Protection Program (“SBA PPP”) totaling approximately $726.3 million

 

o

Commercial & industrial loan growth was 2.2% year-over-year, excluding SBA PPP loans

 

Deposit growth, excluding certificates of deposit, was 20.8% year-over-year, driven by growth in demand deposits

 

Trust assets under management totaled a record $5.0 billion, driven by both market appreciation and organic growth

 

Continued expense management demonstrated by a year-to-date efficiency ratio of 56.38% (non-GAAP measure)

 

Key credit quality metrics such as non-performing assets, 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, those with total assets between $10 billion and $25 billion (based upon the four quarters prior to the current earnings period)

 

Subsequent to year-end, on January 22, 2021, WesBanco Bank completed its financial center optimization strategy announced during August 2020 through the consolidation of 21 financial centers into nearby locations and the conversion of one location to drive-up only


The following information was filed by Wesbanco Inc (WSBC) on Tuesday, January 26, 2021 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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