Company Contact
John Iannone
Vice President, Investor Relations
WesBanco, Inc.
304-905-7021

WesBanco Announces Third Quarter 2018 Net Income

Wheeling, WV, October 24, 2018 – 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 nine months ended September 30, 2018.  Net income for the three months ended September 30, 2018 was $32.5
 million, with diluted earnings per share of $0.64, compared to $26.4 million and $0.60 per diluted share, respectively, for the third quarter of 2017.  For the nine months ended September 30, 2018, net income was $99.2 million, or $2.11 per diluted share, compared to $78.6 million, or $1.78 per diluted share, for the 2017 period.  Net income excluding after-tax merger-related expenses for the three months ended September 30, 2018, increased 55.6% year-over-year to $41.0 million, or $0.81 per diluted share as compared to $0.60 per diluted share in the prior year quarter (non-GAAP measure).  On the same basis, net income for the nine months ended September 30, 2018 increased 42.2% year-over-year to $112.2 million, or $2.38 per diluted share versus $1.79 per diluted share in the prior year period (non-GAAP measure).

     
For the Three Months Ended September 30,
   
For the Nine Months Ended September 30, 
     
2018 
 
2017 
 
2018
 
2017 
(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 (Non-GAAP)(1)
 $      41,027
 
 $       0.81
 
 $      26,356
 
 $       0.60
 
 $    112,194
 
 $       2.38
 
 $      78,903
 
 $       1.79
Less: After tax merger-related expenses
         (8,541)
 
        (0.17)
 
                 -
 
              -
 
       (13,010)
 
        (0.27)
 
(319)
 
        (0.01)
Net income (GAAP)
 
 $      32,486
 
 $       0.64
 
 $      26,356
 
 $       0.60
 
 $      99,184
 
 $       2.11
 
 $      78,584
 
 $       1.78
(1) See non-GAAP financial measures for additional information relating to the calculation of these items.
 
On April 5, 2018, WesBanco consummated the merger with First Sentry Bancshares, Inc. ("FTSB"), a bank holding company headquartered in Huntington, WV with $0.7 billion in assets, excluding goodwill.  In addition, on August 20, 2018, WesBanco consummated the merger with Farmers Capital Bank Corporation ("FFKT"), a bank holding company headquartered in Frankfort, KY with approximately $1.6 billion in assets, excluding goodwill.  Financial results for both FTSB and FFKT have been included in WesBanco's results from their respective merger consummation dates.

Financial and operational highlights:
·
Execution of well-defined long-term growth strategies driving strong profitability
o
Year-to-date income before provisions for credit losses and income taxes increased 6.8% year-over-year, or 20.4% when excluding merger-related costs
·
Sequential improvement in net interest margin reflects partial quarter of recently consummated FFKT acquisition
·
Solid expense management as demonstrated by a year-to-date efficiency ratio of 55.0% (non-GAAP measure), despite the inclusion of FFKT's operating expenses since August 20, 2018
·
Continued strength across key credit quality metrics
·
Successful completion of the merger with FFKT to become a top ten financial institution in the state of Kentucky

"We are pleased with our financial performance during the third quarter of 2018 as we remain focused on enhancing long-term shareholder value," said Todd F. Clossin, President and Chief Executive Officer of WesBanco. "We continued to drive strong profitability and positive operating leverage while successfully executing upon our long-term growth and diversification strategies and maintaining our legacy of sound credit quality in the third quarter."

Mr. Clossin added, "On August 20th, we welcomed the customers and employees of Farmers Capital Bank and its banking affiliate, United Bank & Capital Trust Company, into WesBanco.  I am excited about our opportunities in Kentucky, as we have grown from not having a presence two years ago to now being a top ten financial institution in the state.  We look forward to maintaining a strong commitment to client service and community banking, as we provide our newest customers with a broader array of banking services."

Balance Sheet
Portfolio loans of $7.7 billion, as of September 30, 2018, increased 21.2% when compared to the prior year period due to the acquisitions of FTSB and FFKT.  Total organic loans were relatively flat at just 0.5% down year-over-year, when excluding the consumer loan portfolio de-emphasis strategy, or down 1.2% in total.  The year-over-year decline in total organic loan growth resulted from continued targeted reductions in the consumer portfolio to reduce its risk profile, lower home equity loan balances due to lower demand as a result of higher interest rates, elevated levels of commercial real estate loans moving to an aggressive secondary financing market, and continued deleveraging by commercial customers reflective of the current operating environment and higher cash levels from tax reform.  Total deposits increased 25.9% year-over-year to $8.9 billion due to the FTSB and FFKT acquisitions.  Continuing to reflect the strength of our legacy footprint, total deposits, excluding CDs, increased 3.4% organically, driven by 4.8% organic growth in interest bearing and non-interest bearing demand deposits.

Credit Quality
Our strong legacy of credit and risk management is reflected in the strength of our credit quality ratios as we continue to focus on prudent lending standards while remaining disciplined and balanced on loan growth.  As of September 30, 2018, despite the addition of approximately $1.4 billion of loans from the acquisitions of FTSB and FFKT, non-performing assets, past due loans, and criticized and classified loans decreased year-over-year on both an absolute dollar basis and as a percentage of the portfolio, excluding certain underperforming commercial loans held for sale related to recent mergers.  Non-performing assets as a percentage of total assets of 0.35%, non-performing loans as a percentage of total portfolio loans of 0.49%, and annualized net charge-offs as a percentage of average portfolio loans of 0.02%, on a year-to-date basis, have continued to show improvement and have declined to the lowest levels in many years.  The modest absolute dollar increase in those categories from the sequential quarter was due to the FFKT merger.  Further reflecting the consistently high quality of the loan portfolio, the provision for credit losses decreased from $2.5 million in the third quarter of 2017 to $1.0 million in the current quarter, a result of net recoveries in the quarter of 0.02% and overall improved credit ratios.  Year-to-date, the provision decreased 35.5% due to net charge-offs of 0.02% and the improved credit ratios.

Net Interest Margin and Income
The net interest margin for the third quarter of 2018 increased 2 basis points year-over-year to 3.50%.  The net interest margin benefited from increases in the Federal Reserve Board's target federal funds rate through the past year and partial quarter benefit from the higher margins on the acquired FFKT net assets, partially offset by higher funding costs as well as a flattening of the yield curve.  Also impacting the year-over-year change in the net interest margin was a six basis point reduction related to the lower tax-equivalency of the state and local municipal tax-exempt securities resulting from the "Tax Cuts and Jobs Act".  The increase in the cost of interest bearing liabilities was primarily due to higher rates for interest bearing public funds, higher tier money market accounts, and Federal Home Loan Bank and other borrowings.  Further, reflecting the benefit of our legacy deposit footprint, the year-to-date deposit beta on the four federal funds rate increases since the year ago quarter was 15%, or only 11% when including the strong growth in non-interest bearing deposits.  Lastly, accretion from acquisitions benefited the third quarter net interest margin by approximately 11 basis points, as compared to 12 basis points in the prior year period, and it was 10 basis points for the year-to-date period versus 9 basis points for the same 2017 period.

Net interest income increased $15.7 million, or 21.1%, during the third quarter of 2018 as compared to the same quarter of 2017 due to an 18.1% increase in average total earning assets, primarily driven by the FTSB and FFKT acquisitions and related accretion from purchase accounting.  For the nine months ended September 30, 2018, net interest income increased $28.4 million, or 13.1%, due to higher average total earning assets from a larger investment portfolio and the $2.2 billion in earning assets acquired from FTSB and FFKT.

Non-Interest Income
For the third quarter of 2018, non-interest income of $26.2 million increased $5.3 million, or 25.5%, from the third quarter of 2017, driven by the FTSB and FFKT acquisitions.  The associated larger customer deposit base and higher transaction volumes drove the year-over-year increases in electronic banking fees and service charges on deposits.  Higher trust fees were due to a 21% increase in trust assets from a combination of the acquisition of FFKT's trust business and organic growth, as well as improvement in the equity markets.  Other income increased $1.0 million primarily due to a $0.6 million increase in commercial customer loan swap-related income.  In addition, mortgage banking income increased $0.4 million, or 37.9%, due to the strength of the residential mortgage lending program.

For the nine months ended September 30, 2018, non-interest income increased $7.8 million, or 11.8%.  The primary drivers of this year-to-date increase were increased customer levels, transaction volumes, mortgage banking income, and trust assets, as discussed above.

Non-Interest Expense
Total operating expenses continued to be well-controlled during the third quarter of 2018, despite the inclusion of FFKT's operating expenses since August 20th.  The FFKT cost savings of 35% announced in April remain on track for 75% of the anticipated savings to be achieved during 2019 and 100% thereafter.  Excluding merger-related expenses, non-interest expense increased $9.6 million, or 17.1%, compared to the prior year period, reflecting the two acquisitions.  This year-over-year increase is primarily due to higher salaries and wages, employee benefits, net occupancy, and equipment costs associated with additional staffing and financial center locations from the two acquisitions.  These increases were balanced by strong discretionary expense management as demonstrated by the 148 basis point year-over-year decrease in the efficiency ratio to 55.6%.

Excluding merger-related expenses in both years, non-interest expense during the first nine months of 2018 increased $12.2 million, or 7.4%, compared to the prior year period, reflecting the acquisition of both FTSB and FFKT, partially offset by strong legacy expense management.
 
Provision for Income Taxes
The effective income tax rate and associated provision for income taxes for the third quarter of 2018 are reflective of the recently enacted "Tax Cuts and Jobs Act", which lowered the statutory Federal income tax rate for corporations to 21%.  During the third quarter, the effective tax rate was 16.71% as compared to 28.54% last year, while the provision for income taxes decreased $4.0 million to $6.5 million, despite higher year-over-year pre-tax income.

Capital
WesBanco continues to maintain 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 September 30, 2018, Tier I leverage was 11.22%, Tier I Risk-Based capital was 14.32%, Total Risk-Based capital was 15.20%, and the Common Equity Tier 1 capital ratio ("CET 1") was 12.41%.  Tangible common equity also remained strong at 8.66% at period-end.  Record earnings achieved during 2017, strong regulatory capital and liquidity positions, and solid execution on well-defined long-term operational and growth strategies enabled WesBanco to increase the quarterly cash dividend by 11.5% to $0.29 per share during February of this year.  This was the eleventh increase during the last eight years, representing a cumulative increase of 107%.

Conference Call and Webcast
WesBanco will host a conference call to discuss the Company's financial results for the third quarter of 2018 at 3:00 p.m. ET on Thursday, October 25, 2018.  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 10115497.  The replay will begin at approximately 5:00 p.m. ET on October 25, and end at 12 a.m. ET on November 6.  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 Statements
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 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, 2017 and documents subsequently filed by WesBanco with the Securities and Exchange Commission ("SEC"), including WesBanco's Form 10-Q for the quarters ended March 31 and June 30, 2018, 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, that the businesses of WesBanco and FFKT may not be integrated successfully or such integration may take longer to accomplish than excepted; the expected cost savings and any revenue synergies from the merger of WesBanco and FFKT may not be fully realized within the expected timeframes; disruption from the merger of WesBanco and FFKT may make it more difficult to maintain relationships with clients, associates, or suppliers; 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 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; internet hacking; 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.

About WesBanco, Inc.
Founded in 1870, WesBanco, Inc. (www.wesbanco.com) is a multi-state, bank holding company with total assets of approximately $12.6 billion (as of September 30, 2018).  WesBanco is a diversified and well-balanced financial services institution, with a community bank at its core, built upon a strong legacy of credit and risk management.  WesBanco has meaningful market share across its key geographies maintained by its commitment to dedicated customer service and solid fee-based businesses. It also provides wealth management services through a century-old trust and wealth management business, with approximately $4.7 billion of assets under management (as of September 30, 2018), and serves as registered investment advisor to a proprietary mutual fund family, the WesMark Funds.  WesBanco's banking subsidiary, WesBanco Bank, Inc., operates 209 financial centers in the states of Indiana, Kentucky, Ohio, Pennsylvania, and West Virginia.  In addition, WesBanco operates an insurance agency, WesBanco Insurance Services, Inc., and a full service broker/dealer, WesBanco Securities, Inc.
 
WESBANCO, INC.
                     
Consolidated Selected Financial Highlights
                   
Page 4
(unaudited, dollars in thousands, except shares and per share amounts)
               
       
For the Three Months Ended
 
For the Nine Months Ended
STATEMENT OF INCOME
September 30, 
 
September 30,
Interest and dividend income
2018
 
2017
 
% Change
 
2018
 
2017
 
% Change
 
Loans, including fees
 $             86,605
 
 $               70,342
 
                      23.1
 
 $          234,276
 
 $             202,600
 
                      15.6
 
Interest and dividends on securities:
                     
   
Taxable
                14,964
 
                    9,711
 
                      54.1
 
                40,702
 
                  28,682
 
                      41.9
   
Tax-exempt
                  5,326
 
                    4,862
 
                        9.5
 
                15,216
 
                  14,617
 
                        4.1
     
Total interest and dividends on securities
                20,290
 
                  14,573
 
                      39.2
 
                55,918
 
                  43,299
 
                      29.1
 
Other interest income
                  1,498
 
                       574
 
                    161.0
 
                  3,402
 
                    1,674
 
                    103.2
          Total interest and dividend income
              108,393
 
                  85,489
 
                      26.8
 
              293,596
 
                247,573
 
                      18.6
Interest expense
                     
 
Interest bearing demand deposits
                  3,501
 
                    1,814
 
                      93.0
 
                  9,174
 
                    4,413
 
                    107.9
 
Money market deposits
                  1,360
 
                       751
 
                      81.1
 
                  3,332
 
                    1,970
 
                      69.1
 
Savings deposits
                      352
 
                       189
 
                      86.2
 
                      768
 
                       555
 
                      38.4
 
Certificates of deposit
                  3,276
 
                    2,610
 
                      25.5
 
                  8,789
 
                    7,512
 
                      17.0
     
Total interest expense on deposits
                  8,489
 
                    5,364
 
                      58.3
 
                22,063
 
                  14,450
 
                      52.7
 
Federal Home Loan Bank borrowings
                  6,691
 
                    3,628
 
                      84.4
 
                17,142
 
                    9,608
 
                      78.4
 
Other short-term borrowings
                      965
 
                       394
 
                    144.9
 
                  2,497
 
                       954
 
                    161.7
 
Subordinated debt and junior subordinated debt
                  2,315
 
                    1,849
 
                      25.2
 
                  6,425
 
                    5,449
 
                      17.9
     
Total interest expense
                18,460
 
                  11,235
 
                      64.3
 
                48,127
 
                  30,461
 
                      58.0
Net interest income
                89,933
 
                  74,254
 
                      21.1
 
              245,469
 
                217,112
 
                      13.1
 
Provision for credit losses
                  1,035
 
                    2,516
 
                    (58.9)
 
                  4,911
 
                    7,610
 
                    (35.5)
Net interest income after provision for credit losses
                88,898
 
                  71,738
 
                      23.9
 
              240,558
 
                209,502
 
                      14.8
Non-interest income
                     
 
Trust fees
6,265
 
5,358
 
                      16.9
 
18,520
 
17,073
 
                        8.5
 
Service charges on deposits
6,313
 
5,320
 
                      18.7
 
16,282
 
15,254
 
                        6.7
 
Electronic banking fees
6,139
 
4,883
 
                      25.7
 
16,697
 
14,395
 
                      16.0
 
Net securities brokerage revenue
1,836
 
1,721
 
                        6.7
 
5,315
 
5,164
 
                        2.9
 
Bank-owned life insurance
1,232
 
1,164
 
                        5.8
 
5,116
 
3,671
 
                      39.4
 
Mortgage banking income
1,521
 
1,103
 
                      37.9
 
4,297
 
3,511
 
                      22.4
 
Net securities gains
                        84
 
6
 
                 1,300.0
 
403
 
511
 
                    (21.1)
 
Net gain/(loss) on other real estate owned and other assets
150
 
(298)
 
                    150.3
 
641
 
9
 
                 7,022.2
 
Other income
                  2,684
 
1,642
 
                      63.5
 
                  6,444
 
6,318
 
                        2.0
     
Total non-interest income
26,224
 
20,899
 
                      25.5
 
73,715
 
65,906
 
                      11.8
Non-interest expense
                     
 
Salaries and wages
30,335
 
24,957
 
                      21.5
 
82,213
 
71,575
 
                      14.9
 
Employee benefits
7,905
 
7,728
 
                        2.3
 
22,782
 
23,670
 
                      (3.8)
 
Net occupancy
4,957
 
4,132
 
                      20.0
 
13,715
 
12,969
 
                        5.8
 
Equipment
4,488
 
3,905
 
                      14.9
 
12,532
 
12,043
 
                        4.1
 
Marketing
1,446
 
1,599
 
                      (9.6)
 
3,967
 
4,482
 
                    (11.5)
 
FDIC insurance
789
 
945
 
                    (16.5)
 
2,315
 
2,677
 
                    (13.5)
 
Amortization of intangible assets
1,821
 
1,223
 
                      48.9
 
4,218
 
3,736
 
                      12.9
 
Restructuring and merger-related expense
                10,811
 
                         -
 
                    100.0
 
                16,468
 
                       491
 
                 3,254.0
 
Other operating expenses
                13,568
 
11,265
 
                      20.4
 
                36,024
 
34,380
 
                        4.8
     
Total non-interest expense
76,120
 
55,754
 
                      36.5
 
194,234
 
166,023
 
                      17.0
Income before provision for income taxes
                39,002
 
                  36,883
 
                        5.7
 
              120,039
 
                109,385
 
                        9.7
 
Provision for income taxes
                  6,516
 
                  10,527
 
                    (38.1)
 
                20,855
 
                  30,801
 
                    (32.3)
Net Income
 $             32,486
 
 $               26,356
 
                      23.3
 
 $             99,184
 
 $               78,584
 
                      26.2
                             
Taxable equivalent net interest income
 $            91,348
 
 $            76,872
 
                      18.8
 
 $          249,514
 
 $          224,983
 
                      10.9
                             
Per common share data
                     
Net income per common share - basic
 $                 0.65
 
 $                   0.60
 
                        8.3
 
 $                 2.11
 
 $                   1.79
 
                      17.9
Net income per common share - diluted
                     0.64
 
                      0.60
 
                        6.7
 
                     2.11
 
                      1.78
 
                      18.5
Net income per common share - diluted, excluding certain items (1)(2)
                     0.81
 
                      0.60
 
                      35.0
 
                     2.38
 
                      1.79
 
                      33.0
Dividends declared
                     0.29
 
                      0.26
 
                      11.5
 
                     0.87
 
                      0.78
 
                      11.5
Book value (period end)
                  35.30
 
                    31.67
 
                      11.5
 
                  35.30
 
                    31.67
 
                      11.5
Tangible book value (period end) (1)
                  18.54
 
                    18.40
 
                        0.8
 
                  18.54
 
                    18.40
 
                        0.8
Average common shares outstanding - basic
50,277,847
 
44,031,813
 
                      14.2
 
46,965,095
 
43,992,017
 
                        6.8
Average common shares outstanding - diluted
50,432,112
 
           44,086,881
 
                      14.4
 
47,107,829
 
           44,059,469
 
                        6.9
Period end common shares outstanding
        54,603,967
 
           44,033,585
 
                      24.0
 
        54,603,967
 
           44,033,585
 
                      24.0
                             
(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 merger-related expenses and the net deferred tax asset revaluation.
 
WESBANCO, INC.
                               
Consolidated Selected Financial Highlights
                 
Page 5
(unaudited, dollars in thousands)
                             
                                   
Selected ratios
                                 
 
For the Nine Months Ended
         
 
September 30,
           
 
2018
 
2017
 
% Change
           
                       
Return on average assets
                 1.21
%
                 1.07
%
               13.08
%
         
Return on average assets, excluding
                     
    after-tax merger-related expenses and
                     
    net deferred tax asset revaluation (1)
                 1.37
 
                 1.07
 
               28.04
           
Return on average equity
                 8.59
 
                 7.63
 
               12.58
           
Return on average equity, excluding
                     
    after-tax merger-related expenses and
                     
    net deferred tax asset revaluation (1)
                 9.71
 
                 7.66
 
               26.76
           
Return on average tangible equity (1)
15.71
 
13.69
 
               14.76
           
Return on average tangible equity, excluding
                     
    after-tax merger-related expenses and
                     
    net deferred tax asset revaluation (1)
               17.70
 
               13.74
 
               28.82
           
Yield on earning assets (2)
                 4.11
 
                 3.92
 
                 4.85
           
Cost of interest bearing liabilities
                 0.89
 
                 0.62
 
               43.55
           
Net interest spread (2)
                 3.22
 
                 3.30
 
               (2.42)
           
Net interest margin (2)
                 3.44
 
                 3.45
 
               (0.29)
           
Efficiency (1) (2)
               55.00
 
               56.91
 
               (3.36)
           
Average loans to average deposits
               88.25
 
               89.72
 
               (1.64)
           
Annualized net loan (recoveries) charge-offs/average loans
                 0.02
 
                 0.12
 
             (83.33)
           
Effective income tax rate (3)
               17.37
 
               28.16
 
             (38.32)
           
                       
                       
                       
                       
 
For the Quarter Ended
   
 
Sept. 30,
 
June 30,
 
Mar. 31,
 
Dec. 31,
 
Sept. 30,
   
 
2018
 
2018
 
2018
 
2017
 
2017
   
                       
Return on average assets
1.10
%
1.22
%
1.36
%
0.64
%
1.06
%
 
Return on average assets, excluding
                     
    after-tax merger-related expenses and
                     
    net deferred tax asset revaluation (1)
1.39
 
1.38
 
1.37
 
1.16
 
1.06
   
Return on average equity
7.50
 
8.77
 
9.70
 
4.48
 
7.50
   
Return on average equity, excluding
                     
    after-tax merger-related expenses and
                     
    net deferred tax asset revaluation (1)
9.47
 
9.90
 
9.76
 
8.17
 
7.50
   
Return on average tangible equity (1)
14.25
 
15.87
 
17.10
 
8.05
 
13.31
   
Return on average tangible equity, excluding
                     
    after-tax merger-related expenses and
                     
    net deferred tax asset revaluation (1)
17.85
 
17.85
 
17.20
 
14.36
 
13.31
   
Yield on earning assets (2)
4.21
 
4.11
 
3.98
 
3.95
 
3.99
   
Cost of interest bearing liabilities
0.95
 
0.91
 
0.80
 
0.71
 
0.67
   
Net interest spread (2)
3.26
 
3.20
 
3.18
 
3.24
 
3.32
   
Net interest margin (2)
3.50
 
3.43
 
3.38
 
3.43
 
3.48
   
Efficiency (1) (2)
55.55
 
54.28
 
55.12
 
55.08
 
57.03
   
Average loans to average deposits
87.56
 
88.15
 
89.26
 
90.26
 
90.43
   
Annualized net loan (recoveries) charge-offs/average loans
(0.02)
 
0.03
 
0.07
 
0.16
 
0.12
   
Effective income tax rate (3)
16.71
 
18.11
 
17.28
 
59.14
 
28.54
   
Trust assets, market value at period end
 $     4,743,894
 
 $     4,044,207
 
 $     4,027,358
 
 $     3,943,519
 
 $     3,908,705
   
                       
(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.      
(3) The three months ended December 31, 2017 include a $12.8 million tax expense as a result of the net deferred tax asset revaluation. 
 
WESBANCO, INC.
               
Consolidated Selected Financial Highlights
             
Page 6
 (unaudited, dollars in thousands, except shares)            % Change
Balance sheets
 
September 30,
   
December 31,
December 31, 2017
Assets
   
2018
 
2017
 
% Change
2017
to Sept. 30, 2018
Cash and due from banks
 
 $        184,826
 
 $        96,167
 
         92.2
 $     97,746
                            89.1
Due from banks - interest bearing
 
             88,854
 
           14,704
 
       504.3
                 19,826
                          348.2
Securities:
               
 
Equity securities, at fair value
 
             12,784
 
             7,929
 
         61.2
                 13,457
                            (5.0)
 
Available-for-sale debt securities, at fair value
 
        2,008,232
 
      1,305,532
 
         53.8
            1,261,865
                            59.1
 
Held-to-maturity debt securities (fair values of $1,014,361; $1,044,748
               
 
and $1,023,784, respectively)
 
        1,025,538
 
      1,025,688
 
          (0.0)
            1,009,500
                              1.6
   
Total securities
 
        3,046,554
 
      2,339,149
 
         30.2
            2,284,822
                            33.3
Loans held for sale
 
             55,913
 
           26,888
 
       107.9
                 20,320
                          175.2
Portfolio loans:
               
 
Commercial real estate
 
        3,906,221
 
      3,014,412
 
         29.6
            2,994,448
                            30.4
 
Commercial and industrial
 
        1,292,073
 
      1,125,693
 
         14.8
            1,125,327
                            14.8
 
Residential real estate
 
        1,598,477
 
      1,356,580
 
         17.8
            1,353,301
                            18.1
 
Home equity
 
           604,106
 
         527,216
 
         14.6
               529,196
                            14.2
 
Consumer
 
           325,546
 
         349,148
 
          (6.8)
               339,169
                            (4.0)
Total portfolio loans, net of unearned income
 
        7,726,423
 
      6,373,049
 
         21.2
            6,341,441
                            21.8
Allowance for loan losses
 
            (48,902)
 
         (45,487)
 
          (7.5)
               (45,284)
                            (8.0)
   
Net portfolio loans
 
        7,677,521
 
      6,327,562
 
         21.3
            6,296,157
                            21.9
Premises and equipment, net
 
           159,284
 
         133,497
 
         19.3
               130,722
                            21.8
Accrued interest receivable
 
             39,465
 
           30,152
 
         30.9
                 29,728
                            32.8
Goodwill and other intangible assets, net
 
           928,083
 
         590,249
 
         57.2
               589,264
                            57.5
Bank-owned life insurance
 
           223,995
 
         191,466
 
         17.0
               192,589
                            16.3
Other assets
 
           194,984
 
         168,443
 
         15.8
               155,004
                            25.8
Total Assets
 
 $   12,599,479
 
 $   9,918,277
 
         27.0
 $   9,816,178
                            28.4
                       
Liabilities
               
Deposits:
               
 
Non-interest bearing demand
 
 $     2,411,862
 
 $   1,851,167
 
         30.3
 $      1,846,748
                            30.6
 
Interest bearing demand
 
        2,187,662
 
      1,666,117
 
         31.3
            1,625,015
                            34.6
 
Money market
 
        1,178,950
 
         990,788
 
         19.0
            1,024,856
                            15.0
 
Savings deposits
 
        1,649,684
 
      1,258,887
 
         31.0
            1,269,912
                            29.9
 
Certificates of deposit
 
        1,513,600
 
      1,334,066
 
         13.5
            1,277,057
                            18.5
   
Total deposits
 
        8,941,758
 
      7,101,025
 
         25.9
            7,043,588
                            26.9
Federal Home Loan Bank borrowings
 
        1,131,253
 
      1,015,011
 
         11.5
               948,203
                            19.3
Other short-term borrowings
 
           294,281
 
         165,576
 
         77.7
               184,805
                            59.2
Subordinated debt and junior subordinated debt
 
           189,745
 
         164,278
 
         15.5
               164,327
                            15.5
   
Total borrowings
 
        1,615,279
 
      1,344,865
 
         20.1
            1,297,335
                            24.5
Accrued interest payable
 
               6,623
 
             3,924
 
         68.8
                   3,178
                          108.4
Other liabilities
 
           108,550
 
           73,905
 
         46.9
                 76,756
                            41.4
Total Liabilities
 
      10,672,210
 
      8,523,719
 
         25.2
            8,420,857
                            26.7
                       
Shareholders' Equity
               
Preferred stock, no par value; 1,000,000 shares authorized;
               
 
none outstanding
 
 -
 
                   -
 
             -
 -
                                -
Common stock, $2.0833 par value; 100,000,000 shares authorized in
               
   
2018 and 2017, respectively; 54,604,294,  44,041,572 and 44,043,244 shares
               
 
issued, respectively; 54,603,967, 44,033,585 and 44,043,244 shares
 
           113,758
 
           91,753
 
         24.0
                 91,756
                            24.0
 
outstanding, respectively
               
Capital surplus
 
        1,165,006
 
         683,348
 
         70.5
               684,730
                            70.1
Retained earnings
 
           709,477
 
         641,329
 
         10.6
               651,357
                              8.9
Treasury stock (327,  7,987 and 0 shares - at cost, respectively)
 
                   (15)
 
              (300)
 
         95.0
                        -
                                -
Accumulated other comprehensive loss
 
            (59,873)
 
         (20,837)
 
      (187.3)
               (31,495)
                          (90.1)
Deferred benefits for directors
 
              (1,084)
 
              (735)
 
        (47.5)
                 (1,027)
                            (5.6)
Total Shareholders' Equity
 
        1,927,269
 
      1,394,558
 
         38.2
            1,395,321
                            38.1
Total Liabilities and Shareholders' Equity
 
 $   12,599,479
 
 $   9,918,277
 
         27.0
 $    9,816,178
                            28.4
 
WESBANCO, INC.
         
Consolidated Selected Financial Highlights
       
Page 7
(unaudited, dollars in thousands, except shares)
         
Balance sheets
September 30,
June 30,
 
Assets
 
2018
2018
% Change
Cash and due from banks
 $         184,826
 $        101,905
81.4
Due from banks - interest bearing
             88,854
             53,654
65.6
Securities:
     
 
Trading securities, at fair value
             12,784
             13,494
(5.3)
 
Available-for-sale, at fair value
         2,008,232
         1,796,571
11.8
 
Held-to-maturity (fair values of $1,014,361 and 1,016,111, respectively)
         1,025,538
         1,019,746
0.6
   
Total securities
         3,046,554
         2,829,811
7.7
Loans held for sale
             55,913
             12,053
363.9
Portfolio Loans:
     
 
Commercial real estate
         3,906,221
         3,189,335
22.5
 
Commercial and industrial
         1,292,073
         1,294,488
(0.2)
 
Residential real estate
         1,598,477
         1,450,829
10.2
 
Home equity
           604,106
           535,653
12.8
 
Consumer
           325,546
           322,594
0.9
Total portfolio loans, net of unearned income
         7,726,423
         6,792,899
13.7
Allowance for loan losses
            (48,902)
           (47,638)
(2.7)
   
Net portfolio loans
         7,677,521
         6,745,261
13.8
Premises and equipment, net
           159,284
           131,502
21.1
Accrued interest receivable
             39,465
             33,868
16.5
Goodwill and other intangible assets, net
           928,083
           661,616
40.3
Bank-owned life insurance
           223,995
           191,701
16.8
Other assets
           194,984
           185,213
5.3
Total Assets
 $  12,599,479
 $ 10,946,584
15.1
             
Liabilities
     
Deposits:
     
 
Non-interest bearing demand
 $      2,411,862
 $      2,046,537
17.9
 
Interest bearing demand
         2,187,662
         1,809,140
20.9
 
Money market
         1,178,950
         1,051,043
12.2
 
Savings deposits
         1,649,684
         1,385,356
19.1
 
Certificates of deposit
         1,513,600
         1,376,528
10.0
   
Total deposits
         8,941,758
         7,668,604
16.6
Federal Home Loan Bank borrowings
         1,131,253
         1,248,406
(9.4)
Other short-term borrowings
           294,281
           258,067
14.0
Subordinated debt and junior subordinated debt
           189,745
           165,420
               14.7
   
Total borrowings
         1,615,279
         1,671,893
(3.4)
Accrued interest payable
               6,623
               4,417
49.9
Other liabilities
           108,550
             77,564
39.9
Total liabilities
       10,672,210
         9,422,478
13.3
             
Shareholders' Equity
     
Preferred stock, no par value; 1,000,000 shares authorized;
   
 
none outstanding
                   -
                   -
                  -
Common stock, $2.0833 par value; 100,000,000 shares authorized;
   
 
54,604,294 and 46,655,012 shares issued, respectively;
   
 
54,603,967 and 46,643,250 shares outstanding, respectively
           113,758
             97,197
17.0
Capital surplus
         1,165,006
           789,038
47.6
Retained earnings
           709,477
           692,820
2.4
Treasury stock (327 and 11,762 shares - at cost)
                  (15)
                (555)
(97.3)
Accumulated other comprehensive loss
            (59,873)
           (53,352)
(12.2)
Deferred benefits for directors
             (1,084)
             (1,042)
4.1
Total Shareholders' Equity
         1,927,269
         1,524,106
               26.5
Total Liabilities and Shareholders' Equity
 $  12,599,479
 $ 10,946,584
15.1
 
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 September 30,
 
For the Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
 
 
Average
Average
 
Average
Average
 
Average
Average
 
Average
Average
 
Assets
Balance
Rate
 
Balance
Rate
 
Balance
Rate
 
Balance
Rate
 
Due from banks - interest bearing
 $            94,337
             2.29
%
 $              9,841
             1.26
 %
 $         50,686
        2.28
 %
 $          12,199
             0.80
%
Loans, net of unearned income (1)
          7,227,835
             4.75
 
          6,396,897
             4.36
 
               6,787,565
        4.61
 
        6,347,626
             4.27
 
Securities: (2)
                       
    Taxable
2,194,708
             2.73
 
1,595,263
             2.43
 
2,038,978
        2.66
 
1,582,875
             2.42
 
    Tax-exempt (3)
785,699
             3.43
 
721,343
             4.15
 
751,403
        3.42
 
722,834
             4.15
 
        Total securities
2,980,407
             2.91
 
2,316,606
             2.97
 
2,790,381
        2.87
 
2,305,709
             2.96
 
Other earning assets
               60,783
             6.26
 
               48,961
             4.44
 
                    56,182
        6.02
 
             47,511
             4.49
 
         Total earning assets (3)
        10,363,362
             4.21
%
          8,772,305
             3.99
 %
               9,684,814
        4.11
 %
        8,713,045
             3.92
%
Other assets
1,375,434
   
1,125,182
   
1,238,728
   
1,123,193
   
Total Assets
 $     11,738,796
   
 $       9,897,487
   
 $    10,923,542
   
 $     9,836,238
   
                         
Liabilities and Shareholders' Equity
                       
Interest bearing demand deposits
 $       1,983,340
             0.70
%
 $       1,635,956
             0.44
 %
 $      1,844,423
        0.67
 %
 $     1,602,546
             0.37
%
Money market accounts
1,111,341
             0.49
 
994,772
             0.30
 
1,051,104
        0.42
 
1,015,852
             0.26
 
Savings deposits
1,511,075
             0.09
 
1,257,785
             0.06
 
1,389,613
        0.07
 
1,246,252
             0.06
 
Certificates of deposit
1,439,658
             0.90
 
1,367,581
             0.76
 
1,366,109
        0.86
 
1,408,231
             0.71
 
    Total interest bearing deposits
6,045,414
             0.56
 
          5,256,094
             0.40
 
5,651,249
        0.52
 
        5,272,881
             0.37
 
Federal Home Loan Bank borrowings
1,194,940
             2.22
 
          1,005,106
             1.43
 
1,138,350
        2.01
 
           967,356
             1.33
 
Other borrowings
269,342
             1.42
 
185,051
             0.85
 
249,030
        1.34
 
178,613
             0.71
 
Subordinated debt and junior subordinated debt
180,074
             5.10
 
             164,236
             4.47
 
172,518
        4.98
 
           164,112
             4.44
 
      Total interest bearing liabilities
7,689,770
             0.95
%
6,610,487
             0.67
 %
7,211,147
        0.89
 %
6,582,962
             0.62
%
Non-interest bearing demand deposits
2,209,235
   
1,817,781
   
2,040,292
   
1,801,945
   
Other liabilities
120,302
   
75,254
   
127,699
   
74,920
   
Shareholders' equity
1,719,489
   
1,393,965
   
1,544,404
   
1,376,411
   
Total Liabilities and Shareholders' Equity
 $     11,738,796
   
 $       9,897,487
   
 $    10,923,542
   
 $     9,836,238
   
Taxable equivalent net interest spread
 
             3.26
%
 
             3.32
 %
 
        3.22
 %
 
             3.30
%
Taxable equivalent net interest margin
 
             3.50
%
 
             3.48
 %
 
        3.44
 %
 
             3.45
%
                         
                         
(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 are $0.9 million and $0.8 million for the three months ended September 30, 2018 and 2017, respectively, and $2.3 million and $2.4 million for the nine months ended September 30, 2018 and 2017, respectively. Additionally, loan accretion included in interest income on loans acquired from prior acquisitions was $2.4 million for both the three months ended September 30, 2018 and 2017 and $5.9 million and $4.9 million  for the nine months ended September 30, 2018 and 2017, respectively. Accretion on interest bearing liabilities acquired from the prior acquisitions was $0.6 million and $0.3 million for the three months ended September 30, 2018 and 2017, respectively, and $1.5 million and $1.1 million  for the nine months ended September 30, 2018 and 2017, 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 2018 and 35% for each prior period presented.
 
WESBANCO, INC.
                 
Consolidated Selected Financial Highlights
               
 Page 9
(unaudited, dollars in thousands, except shares and per share amounts)
               
Quarter Ended
Statement of Income
Sept.  30,
 
June 30,
 
Mar. 31,
 
Dec. 31,
 
Sept.  30,
Interest income
2018
 
2018
 
2018
 
2017
 
2017
Loans, including fees
 $                    86,605
 
 $            78,538
 
 $           69,237
 
 $            69,408
 
 $           70,342
 
Interest and dividends on securities:
                 
   
Taxable
                       14,964
 
               14,194
 
              11,543
 
                 9,948
 
                9,711
   
Tax-exempt
                         5,326
 
                 5,055
 
                4,834
 
                 4,872
 
                4,862
     
Total interest and dividends on securities
                       20,290
 
               19,249
 
              16,377
 
               14,820
 
              14,573
 
Other interest income
                         1,498
 
                 1,101
 
                   803
 
                    623
 
                   574
          Total interest and dividend income
                     108,393
 
               98,888
 
              86,417
 
               84,851
 
              85,489
Interest expense
                 
 
Interest bearing demand deposits
                         3,501
 
                 3,150
 
                2,524
 
                 2,039
 
                1,814
 
Money market deposits
                         1,360
 
                 1,093
 
                   878
 
                    805
 
                   751
 
Savings deposits
                            352
 
                    227
 
                   189
 
                    189
 
                   189
 
Certificates of deposit
                         3,276
 
                 2,977
 
                2,536
 
                 2,597
 
                2,610
     
Total interest expense on deposits
                         8,489
 
                 7,447
 
                6,127
 
                 5,630
 
                5,364
 
Federal Home Loan Bank borrowings
                         6,691
 
                 5,953
 
                4,498
 
                 3,682
 
                3,628
 
Other short-term borrowings
                            965
 
                    973
 
                   558
 
                    489
 
                   394
 
Subordinated debt and junior subordinated debt
                         2,315
 
                 2,168
 
                1,942
 
                 1,868
 
                1,849
     
Total interest expense
                       18,460
 
               16,541
 
              13,125
 
               11,669
 
              11,235
Net interest income
                       89,933
 
               82,347
 
              73,292
 
               73,182
 
              74,254
 
Provision for credit losses
                         1,035
 
                 1,708
 
                2,168
 
                 2,376
 
                2,516
Net interest income after provision for credit losses
                       88,898
 
               80,639
 
              71,124
 
               70,806
 
              71,738
Non-interest income
                 
 
Trust fees
6,265
 
5,752
 
6,503
 
5,667
 
5,358
 
Service charges on deposits
6,313
 
5,146
 
4,822
 
5,278
 
5,320
 
Electronic banking fees
6,139
 
5,728
 
4,829
 
4,788
 
4,883
 
Net securities brokerage revenue
1,836
 
1,809
 
1,670
 
1,508
 
1,721
 
Bank-owned life insurance
1,232
 
1,128
 
2,756
 
1,123
 
1,164
 
Mortgage banking income
1,521
 
1,670
 
1,004
 
1,542
 
1,103
 
Net securities gains/(losses)
84
 
358
 
(39)
 
56
 
6
 
Net gain/(loss) on other real estate owned and other assets
150
 
229
 
262
 
649
 
(298)
 
Other income
2,684
 
1,588
 
2,173
 
2,323
 
1,642
     
Total non-interest income
26,224
 
23,408
 
23,980
 
22,934
 
20,899
Non-interest expense
                 
 
Salaries and wages
30,335
 
26,872
 
25,006
 
25,786
 
24,957
 
Employee benefits
7,905
 
7,965
 
6,912
 
6,263
 
7,728
 
Net occupancy
4,957
 
4,103
 
4,656
 
4,132
 
4,132
 
Equipment
4,488
 
4,095
 
3,949
 
3,983
 
3,905
 
Marketing
1,446
 
1,405
 
1,116
 
1,238
 
1,599
 
FDIC insurance
789
 
868
 
658
 
827
 
945
 
Amortization of intangible assets
1,821
 
1,312
 
1,086
 
1,204
 
1,223
 
Restructuring and merger-related expense
10,811
 
5,412
 
                   245
 
                    454
 
                      -
 
Other operating expenses
13,568
 
11,511
 
10,943
 
10,950
 
11,265
     
Total non-interest expense
76,120
 
63,543
 
54,571
 
54,837
 
55,754
Income before provision for income taxes
                       39,002
 
               40,504
 
              40,533
 
               38,903
 
              36,883
 
Provision for income taxes
                         6,516
 
                 7,335
 
                7,004
 
               23,006
 
              10,527
Net Income
 $                    32,486
 
 $            33,169
 
 $           33,529
 
 $            15,897
 
 $           26,356
                         
Taxable equivalent net interest income
 $                   91,348
 
 $            83,691
 
 $          74,577
 
 $            75,805
 
 $          76,872
                         
Per common share data
                 
Net income per common share - basic
 $                        0.65
 
 $                0.71
 
 $               0.76
 
 $                0.36
 
 $               0.60
Net income per common share - diluted
 $                        0.64
 
 $                0.71
 
 $               0.76
 
 $                0.36
 
 $               0.60
Net income per common share - diluted, excluding certain items (1)(2)
 $                        0.81
 
 $                0.80
 
 $               0.76
 
 $                0.66
 
 $               0.60
Dividends declared
 $                        0.29
 
 $                0.29
 
 $               0.29
 
 $                0.26
 
 $               0.26
Book value (period end)
 $                      35.30
 
 $              32.68
 
 $             31.84
 
 $              31.68
 
 $             31.67
Tangible book value (period end) (1)
 $                      18.54
 
 $              18.59
 
 $             18.56
 
 $              18.42
 
 $             18.40
Average common shares outstanding - basic
50,277,847
 
46,498,305
 
44,050,701
 
44,036,416
 
44,031,813
Average common shares outstanding - diluted
50,432,112
 
46,639,780
 
44,168,242
 
44,109,767
 
44,086,881
Period end common shares outstanding
54,603,967
 
46,643,250
 
44,060,957
 
44,043,244
 
44,033,585
Full time equivalent employees
                         2,404
 
                 2,040
 
                1,939
 
                 1,940
 
                1,944
                         
                         
(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 merger-related expenses and the net deferred tax asset revaluation.
 
WESBANCO, INC.
                   
Consolidated Selected Financial Highlights
                 
 Page 10
(unaudited, dollars in thousands)
                   
     
Quarter Ended
 
     
Sept. 30,
 
June 30,
 
Mar. 31,
 
Dec. 31,
 
Sept. 30,
 
Asset quality data
2018
 
2018
 
2018
 
2017
 
2017
 
Non-performing assets:
                   
 
Troubled debt restructurings - accruing
 $           6,338
 
 $           6,460
 
 $           6,858
 
 $           6,571
 
 $           6,638
 
 
Non-accrual loans:
                   
   
Troubled debt restructurings
              2,036
 
              2,514
 
              2,397
 
              2,865
 
              2,982
 
   
Other non-accrual loans
            29,238
 
            29,467
 
            29,989
 
            33,960
 
            32,476
 
   
    Total non-accrual loans
            31,274
 
            31,981
 
            32,386
 
            36,825
 
            35,458
 
   
    Total non-performing loans
            37,612
 
            38,441
 
            39,244
 
            43,396
 
            42,096
 
 
Other real estate and repossessed assets
              6,877
 
              4,384
 
              4,067
 
              5,297
 
              5,782
 
   
Total non-performing assets
 $         44,489
 
 $         42,825
 
 $         43,311
 
 $         48,693
 
 $         47,878
 
                         
Past due loans (1):
                   
 
Loans past due 30-89 days
 $         18,016
 
 $         13,357
 
 $         14,536
 
 $         11,172
 
 $         17,292
 
 
Loans past due 90 days or more
              2,451
 
              1,881
 
              1,579
 
              2,726
 
              4,856
 
   
Total past due loans
 $         20,467
 
 $         15,238
 
 $         16,115
 
 $         13,898
 
 $         22,148
 
                         
Criticized and classified loans (2):
                   
 
Criticized loans
 $         46,370
 
 $         34,045
 
 $         33,785
 
 $         36,092
 
 $         34,784
 
 
Classified loans
            31,437
 
            38,982
 
            34,566
 
            37,858
 
            44,303
 
   
Total criticized and classified loans
 $         77,807
 
 $         73,027
 
 $         68,351
 
 $         73,950
 
 $         79,087
 
                         
Loans past due 30-89 days / total portfolio loans
                0.23
%
                0.20
%
                0.23
%
                0.18
%
                0.27
%
Loans past due 90 days or more / total portfolio loans
                0.03
 
                0.03
 
                0.02
 
                0.04
 
                0.08
 
Non-performing loans / total portfolio loans
                0.49
 
                0.57
 
                0.62
 
                0.68
 
                0.66
 
Non-performing assets/total portfolio loans, other
                   
 
real estate and repossessed assets
                0.58
 
                0.63
 
                0.68
 
                0.77
 
                0.75
 
Non-performing assets / total assets
                0.35
 
                0.39
 
                0.42
 
                0.50
 
                0.48
 
Criticized and classified loans / total portfolio loans
                1.01
 
                1.08
 
                1.08
 
                1.17
 
                1.24
 
                         
Allowance for loan losses
                   
Allowance for loan losses
 $         48,902
 
 $         47,638
 
 $         46,334
 
 $         45,284
 
 $         45,487
 
Provision for credit losses
              1,035
 
              1,708
 
              2,168
 
              2,376
 
              2,516
 
Net loan and deposit account overdraft (recoveries) charge-offs
               (306)
 
                 425
 
              1,063
 
              2,652
 
              1,888
 
                         
Annualized net loan (recoveries) charge-offs /average loans
              (0.02)
 %
                0.02
 %
                0.07
 %
                0.16
 %
                0.12
 %
Allowance for loan losses / total portfolio loans
                0.63
 %
                0.70
 %
                0.73
 %
                0.71
 %
                0.71
 %
Allowance for loan losses / non-performing loans
                1.30
x
                1.24
x
                1.18
x
                1.04
x
                1.08
x
Allowance for loan losses / non-performing loans and
                   
 
loans past due
                0.84
x
                0.89
x
                0.84
x
                0.79
x
                0.71
x
                         
                         
     
Quarter Ended
 
     
Sept. 30,
 
June 30,
 
Mar. 31,
 
Dec. 31,
 
Sept. 30,
 
     
2018
 
2018
 
2018
 
2017
 
2017
 
Capital ratios
                   
Tier I leverage capital
              11.22
%
              10.21
%
              10.56
%
              10.39
%
              10.21
%
Tier I risk-based capital
              14.32
 
              14.26
 
              14.31
 
              14.12
 
              13.62
 
Total risk-based capital
              15.20
 
              15.26
 
              15.35
 
              15.16
 
              14.65
 
Common equity tier 1 capital ratio (CET 1)
              12.41
 
              12.38
 
              12.33
 
              12.14
 
              11.70
 
Average shareholders' equity to average assets
              14.65
 
              13.89
 
              14.02
 
              14.19
 
              14.08
 
Tangible equity to tangible assets (3)
                8.66
 
                8.43
 
                8.46
 
                8.79
 
                8.68
 
 
(1) Excludes non-performing loans.
(2) Criticized and classified loans may include loans that are also reported as non-performing or past due.
(3) See non-GAAP financial measures for additional information relating to the calculation of this ratio.
 
NON-GAAP FINANCIAL MEASURES
                     
Page 11
The following non-GAAP financial measures used by WesBanco provide information useful to investors in understanding WesBanco's operating performance and trends, and facilitate comparisons with the performance of WesBanco's peers. The following tables summarize the non-GAAP financial measures derived from amounts reported in WesBanco's financial statements.
   
Three Months Ended
 
Year to Date
   
Sept. 30,
 
June 30,
 
Mar. 31,
 
Dec. 31,
 
Sept. 30,
 
Sept. 30,
(unaudited, dollars in thousands, except shares and per share amounts)
2018
 
2018
 
2018
 
2017
 
2017
 
2018
2017
Return on average assets, excluding after-tax merger-related expenses and net deferred tax asset revaluation:
         
 
Net income (annualized)
 $             128,886
 
 $         133,039
 
 $         135,979
 
 $           63,068
 
 $         104,566
 
 $         132,609
 $      105,067
 
Plus: after-tax merger-related expenses (annualized)  (1)
                  33,885
 
              17,150
 
                   784
 
                1,170
 
                      -
 
              17,394
                427
 
Plus: net deferred tax asset revaluation (annualized)
                         -
 
                      -
 
                      -
 
              50,703
 
                      -
 
                      -
                   -
 
Net income excluding after-tax merger-related expenses and net deferred tax asset revaluation (annualized)
                162,771
 
            150,189
 
            136,763
 
            114,941
 
            104,566
 
            150,003
         105,494
                           
 
Average total assets
 $        11,738,796
 
 $    10,918,731
 
 $      9,993,364
 
 $      9,907,944
 
 $      9,897,487
 
 $    10,923,542
 $   9,836,238
                           
Return on average assets, excluding after-tax merger-related expenses and net deferred tax asset revaluation
1.39%
 
1.38%
 
1.37%
 
1.16%
 
1.06%
 
1.37%
1.07%
                           
Return on average equity, excluding after-tax merger-related expenses and net deferred tax asset revaluation:
         
 
Net income (annualized)
 $             128,886
 
 $         133,039
 
 $         135,979
 
 $           63,068
 
 $         104,566
 
 $         132,609
 $      105,067
 
Plus: after-tax merger-related expenses (annualized)  (1)
                  33,885
 
              17,150
 
                   784
 
                1,170
 
                      -
 
              17,394
                427
 
Plus: net deferred tax asset revaluation (annualized)
                         -
 
                      -
 
                      -
 
              50,703
 
                      -
 
                      -
                   -
 
Net income excluding after-tax merger-related expenses and net deferred tax asset revaluation (annualized)
                162,771
 
            150,189
 
            136,763
 
            114,941
 
            104,566
 
            150,003
         105,494
                           
 
Average total shareholders' equity
             1,719,489
 
         1,517,036
 
         1,401,271
 
         1,406,263
 
         1,393,965
 
         1,544,404
      1,376,411
                           
Return on average equity, excluding after-tax merger-related expenses and net deferred tax asset revaluation
9.47%
 
9.90%
 
9.76%
 
8.17%
 
7.50%
 
9.71%
7.66%
                           
Return on average tangible equity:
                       
 
Net income (annualized)
 $             128,886
 
 $         133,039
 
 $         135,979
 
 $           63,068
 
 $         104,566
 
 $         132,609
 $      105,067
 
Plus: amortization of intangibles (annualized) (1)
                    5,707
 
                4,156
 
                3,479
 
                3,104
 
                3,154
 
                4,455
             3,247
 
Net income before amortization of intangibles (annualized)
                134,593
 
            137,195
 
            139,458
 
              66,172
 
            107,720
 
            137,064
         108,314
                           
 
Average total shareholders' equity
             1,719,489
 
         1,517,036
 
         1,401,271
 
         1,406,263
 
         1,393,965
 
         1,544,404
      1,376,411
 
Less: average goodwill and other intangibles, net of def. tax liability
              (775,267)
 
          (652,318)
 
          (585,711)
 
          (584,227)
 
          (584,903)
 
           (671,786)
       (585,107)
 
Average tangible equity
 $             944,222
 
 $         864,718
 
 $         815,560
 
 $         822,036
 
 $         809,062
 
 $         872,618
 $      791,304
                           
Return on average tangible equity
14.25%
 
15.87%
 
17.10%
 
8.05%
 
13.31%
 
15.71%
13.69%
                           
Return on average tangible equity, excluding after-tax merger-related expenses and net deferred tax asset revaluation:
 
Net income (annualized)
 $             128,886
 
 $         133,039
 
 $         135,979
 
 $           63,068
 
 $         104,566
 
 $         132,609
 $      105,067
 
Plus: after-tax merger-related expenses (annualized)  (1)
                  33,885
 
              17,150
 
                   784
 
                1,170
 
                      -
 
              17,394
                427
 
Plus: net deferred tax asset revaluation (annualized)
                         -
 
                      -
 
                      -
 
              50,703
 
                      -
 
                      -
                   -
 
Plus: amortization of intangibles (annualized) (1)
                    5,707
 
                4,156
 
                3,479
 
                3,104
 
                3,154
 
                4,455
             3,247
 
Net income before amortization of intangibles and excluding
                       
 
    after-tax merger-related expenses and net deferred tax asset revaluation (annualized)
                168,478
 
            154,345
 
            140,242
 
            118,045
 
            107,720
 
            154,458
         108,741
                           
 
Average total shareholders' equity
             1,719,489
 
         1,517,036
 
         1,401,271
 
         1,406,263
 
         1,393,965
 
         1,544,404
      1,376,411
 
Less: average goodwill and other intangibles, net of def. tax liability
              (775,267)
 
          (652,318)
 
          (585,711)
 
          (584,227)
 
          (584,903)
 
           (671,786)
       (585,107)
 
Average tangible equity
 $             944,222
 
 $         864,718
 
 $         815,560
 
 $         822,036
 
 $         809,062
 
 $         872,618
 $      791,304
                           
Return on average tangible equity, excluding after-tax merger-related expenses and net deferred tax asset revaluation
17.85%
 
17.85%
 
17.20%
 
14.36%
 
13.31%
 
17.70%
13.74%
                           
Efficiency ratio:
                       
 
Non-interest expense
 $               76,120
 
 $           63,543
 
 $           54,571
 
 $           54,837
 
 $           55,754
 
 $         194,234
 $      166,023
 
Less: restructuring and merger-related expense
                (10,811)
 
              (5,412)
 
                 (245)
 
                 (454)
 
                      -
 
             (16,468)
              (491)
 
Non-interest expense excluding restructuring and merger-related expense
                  65,309
 
              58,131
 
              54,326
 
              54,383
 
              55,754
 
            177,766
         165,532
                           
 
Net interest income on a fully taxable equivalent basis
                  91,348
 
              83,691
 
              74,577
 
              75,805
 
              76,872
 
            249,514
         224,983
 
Non-interest income
                  26,224
 
              23,408
 
              23,980
 
              22,934
 
              20,899
 
              73,715
           65,906
 
Net interest income on a fully taxable equivalent basis plus non-interest income
 $             117,572
 
 $         107,099
 
 $           98,557
 
 $           98,739
 
 $           97,771
 
 $         323,229
 $      290,889
 
Efficiency Ratio
55.55%
 
54.28%
 
55.12%
 
55.08%
 
57.03%
 
55.00%
56.91%
                           
Net income, excluding net deferred tax asset revaluation and  after-tax merger-related expenses:
 
Net income
 $               32,486
 
 $           33,169
 
 $           33,529
 
 $           15,897
 
 $           26,356
 
 $           99,184
 $        78,584
 
Add: Net deferred tax asset revaluation
                         -
 
                      -
 
                      -
 
              12,780
 
                      -
 
                      -
                   -
 
Add: After-tax merger-related expenses (1)
                    8,541
 
                4,276
 
                   193
 
                   295
 
                      -
 
              13,010
                319
Net income, excluding net deferred tax asset revaluation and  after-tax merger-related expenses
 $               41,027
 
 $           37,445
 
 $           33,722
 
 $           28,972
 
 $           26,356
 
 $         112,194
 $        78,903
                           
                           
Net Income, excluding net deferred tax asset revaluation and after-tax merger-related expenses per diluted share:
 
Net income per diluted share
 $                   0.64
 
 $               0.71
 
 $               0.76
 
 $               0.36
 
 $               0.60
 
 $               2.11
 $            1.78
 
Add: Net deferred tax asset revaluation per diluted share
                         -
 
                      -
 
                      -
 
                  0.29
 
                      -
 
                      -
                   -
 
Add: After-tax merger-related expenses per diluted share (1)
                      0.17
 
                  0.09
 
                      -
 
                  0.01
 
                      -
 
                  0.27
               0.01
Net income, excluding net deferred tax asset revaluation and  after-tax merger-related expenses per diluted share
 $                   0.81
 
 $               0.80
 
 $               0.76
 
 $               0.66
 
 $               0.60
 
 $               2.38
 $            1.79
                           
                           
   
Period End 
     
   
Sept. 30,
 
June 30,
 
Mar. 31,
 
Dec. 31,
 
Sept. 30,
     
   
2018
 
2018
 
2018
 
2017
 
2017
     
Tangible book value per share:
                       
 
Total shareholders' equity
 $          1,927,269
 
 $      1,524,106
 
 $      1,403,026
 
 $      1,395,321
 
 $      1,394,558
     
 
Less:  goodwill and other intangible assets, net of def. tax liability
              (915,022)
 
          (657,111)
 
          (585,316)
 
          (583,903)
 
          (584,543)
     
 
Tangible equity
             1,012,247
 
            866,995
 
            817,711
 
            811,418
 
            810,015
     
                           
 
Common shares outstanding
           54,603,967
 
       46,643,250
 
       44,060,957
 
       44,043,244
 
       44,033,585
     
                           
Tangible book value per share
 $                 18.54
 
 $             18.59
 
 $             18.56
 
 $             18.42
 
 $             18.40
     
                           
Tangible equity to tangible assets:
                       
 
Total shareholders' equity
 $          1,927,269
 
 $      1,524,106
 
 $      1,403,026
 
 $      1,395,321
 
 $      1,394,558
     
 
Less:  goodwill and other intangible assets, net of def. tax liability
              (915,022)
 
          (657,111)
 
          (585,316)
 
          (583,903)
 
          (584,543)
     
 
Tangible equity
             1,012,247
 
            866,995
 
            817,711
 
            811,418
 
            810,015
     
                           
 
Total assets
           12,599,479
 
       10,946,584
 
       10,245,419
 
         9,816,178
 
         9,918,277
     
 
Less:  goodwill and other intangible assets, net of def. tax liability
              (915,022)
 
          (657,111)
 
          (585,316)
 
          (583,903)
 
          (584,543)
     
 
Tangible assets
 $        11,684,457
 
 $    10,289,473
 
 $      9,660,103
 
 $      9,232,275
 
 $      9,333,734
     
                           
Tangible equity to tangible assets
8.66%
 
8.43%
 
8.46%
 
8.79%
 
8.68%
     
                           
                           
(1) Tax effected at 21% for the periods in 2018 and 35% for all prior periods.

The following information was filed by Wesbanco Inc (WSBC) on Wednesday, October 24, 2018 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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