Company Contact
John Iannone
Vice President, Investor Relations
WesBanco, Inc.
304-905-7021
WesBanco Announces Fourth Quarter 2018 Net Income

Wheeling, WV, January 28, 2019 – 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, 2018.  Net income for the three months ended December 31, 2018 was $43.9
 million, with diluted earnings per share of $0.80, compared to $15.9 million and $0.36 per diluted share, respectively, for the fourth quarter of 2017.  For the twelve months ended December 31, 2018, net income was $143.1 million, or $2.92 per diluted share, compared to $94.5 million, or $2.14 per diluted share, for the 2017 period.  Net income excluding after-tax merger-related expenses and the 2017 net deferred tax asset revaluation, which resulted from last year's Federal tax reform legislation, for the three months ended December 31, 2018, increased 55.4% year-over-year to $45.0 million, or $0.82 per diluted share as compared to $0.66 per diluted share in the prior year quarter, an increase of 24.2% (non-GAAP measure).  On the same basis, net income for the twelve months ended December 31, 2018 increased 45.7% year-over-year to $157.2 million, or $3.21 per diluted share versus $2.45 per diluted share in the prior year period, an increase of 31.0% (non-GAAP measure).
 
     
For the Three Months Ended December 31,
   
For the Twelve Months Ended December 31, 
     
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)
 
 $   45,025
 
 $     0.82
 
 $   28,972
 
 $     0.66
 
 $ 157,221
 
 $     3.21
 
 $ 107,876
 
 $     2.45
Less: Net deferred tax asset revaluation
 
              -
 
           -
 
     (12,780)
 
      (0.29)
 
              -
 
           -
 
     (12,780)
 
      (0.29)
Less: After tax merger-related expenses
 
       (1,097)
 
      (0.02)
 
          (295)
 
      (0.01)
 
     (14,109)
 
      (0.29)
 
(614)
 
      (0.02)
Net income (GAAP)
 
 $   43,928
 
 $     0.80
 
 $   15,897
 
 $     0.36
 
 $ 143,112
 
 $     2.92
 
 $   94,482
 
 $     2.14
(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 combined with strong underlying fundamentals driving strong profitability
o
Record net income during 2018 of $143.1 million, or $157.2 million when excluding merger-related costs
§
2018 net income was positively impacted by the passage of the "Tax Cuts and Jobs Act" in late-2017 which lowered the statutory Federal income tax rate for corporations to 21%, as compared to 35% in prior periods
o
Year-to-date income before provisions for credit losses and income taxes increased 15.2% year-over-year, or 25.7% when excluding merger-related costs
o
Strong core returns on average assets and tangible equity of 1.39% and 17.78%, respectively (non-GAAP measures)
·
Sequential and year-over-year improvement in core net interest margin reflects the benefits of the FFKT and FTSB acquisitions and our core deposit funding advantage
·
Solid expense management as demonstrated by a 184 basis point improvement in the year-to-date efficiency ratio to 54.6% (non-GAAP measure), despite the inclusion of FFKT's operating expenses since August 20, 2018
·
Continued strength across key credit quality metrics reflective of strong legacy of credit and risk management
·
Successful implementation of stated acquisition strategy to cross the $10 billion asset threshold
o
Filled-in the southern edge of franchise
o
Became a top ten financial institution in the state of Kentucky
 
 
"2018 was another successful year for WesBanco, as well as a year full of milestones," said Todd F. Clossin, President and Chief Executive Officer of WesBanco.  "Solid execution and strong fundamentals drove record earnings of $143 million, or $157 million when excluding merger-related costs.  We strengthened the franchise by expanding into new and diversified markets with strong demographics, and ensured top market share across our major markets.  We remained diligent on expense management while continuing to make technology and staffing investments to support future growth – helping to drive our 2018 efficiency ratio to 54.6%.  In addition, we stayed disciplined and balanced on lending decisions as our credit quality ratios have continued to improve to be at or near historic lows."

Mr. Clossin added, "We remain well-positioned for continued success due to our well-defined operational and growth strategies.  Furthermore, we are excited about our opportunities for the upcoming year, and look forward to providing additional value to our customers and shareholders."

Balance Sheet
Portfolio loans of $7.7 billion, as of December 31, 2018, increased 20.7% when compared to the prior year period due to the acquisitions of FTSB and FFKT.  Total organic loans were down 1.3% year-over-year, when excluding the consumer loan portfolio de-emphasis strategy, or down 1.7% in total.  The year-over-year decline in total organic loan growth resulted from 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 and tax changes, 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 25.4% year-over-year to $8.8 billion due to the FTSB and FFKT acquisitions.  Continuing to reflect the strength of our legacy footprint, total deposits, excluding CDs, increased 2.5% organically, driven by 5.8% organic growth in interest bearing and non-interest bearing demand deposits.

Credit Quality
Our underlying credit fundamentals continue to be reflective of our strong legacy of credit and risk management.  During the fourth quarter of 2018, our credit quality ratios remained strong as we balanced disciplined loan origination growth in the current environment with our prudent lending standards.  Our credit quality measures have been at or near historic lows over the last several periods, and, as such, variability from quarter to quarter may occur, which is not suggestive of a change in the direction of overall credit quality.

As of December 31, 2018, despite the addition of approximately $1.4 billion of portfolio loans from the acquisitions of FTSB and FFKT, non-performing loans and non-performing assets decreased year-over-year both on an absolute dollar basis and as a percentage of the portfolio.  Criticized and classified loan balances decreased as a percentage of total loans year-over-year.

Further reflecting the continued high quality of the loan portfolio, on a year-to-date basis for 2018, the provision for credit losses decreased 22.3% year-over-year to $7.8 million, and annualized net loan charge-offs to average loans decreased 7 basis points year-over-year to 0.06%.

Net Interest Margin and Income
The net interest margin for the fourth quarter of 2018 increased 29 basis points year-over-year to 3.72%.  The net interest margin benefited from increases in the Federal Reserve Board's target federal funds rate through the past year and a full 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 17%, or only 12% when including the strong growth in non-interest bearing deposits.  Lastly, accretion from acquisitions benefited the fourth quarter net interest margin by approximately 23 basis points, as compared to 6 basis points in the prior year period, and it was 14 basis points for 2018 versus 8 basis points during 2017.

Net interest income increased $28.6 million, or 39.1%, during the fourth quarter of 2018 as compared to the same quarter of 2017 due to a 25.5% increase in average total earning assets, primarily driven by the FTSB and FFKT acquisitions and related accretion from purchase accounting, as well as an overall higher net interest margin.  For the year ended December 31, 2018, net interest income increased $56.9 million, or 19.6%, due to higher average total earning assets from the $2.2 billion in earning assets acquired from FTSB and FFKT and a larger investment portfolio, and the aforementioned higher net interest margin.

Non-Interest Income
For the fourth quarter of 2018, non-interest income of $26.6 million increased $3.6 million, or 15.8%, from the fourth 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.  Other income increased $0.8 million primarily due to an increase in payment processing fee income.  Net securities losses of $1.3 million were primarily due to a market adjustment on the deferred compensation plan, while an offsetting reduction of $1.1 million is recorded in employee benefits expense.

For the twelve months ended December 31, 2018, non-interest income increased $11.4 million, or 12.9%.  The primary drivers of this year-to-date increase were increased customer levels and transaction volumes from the two acquisitions, higher trust assets from a combination of the FFKT acquisition and organic growth, and higher mortgage banking income due to the strength of the residential mortgage lending program; partially offset by net securities losses as discussed above.

Non-Interest Expense
Total operating expenses continued to be well-controlled during the fourth quarter of 2018, despite the inclusion of FFKT's operating expenses since August 20th.  The FFKT cost savings of 35% announced in April 2018 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 $15.2 million, or 28.0%, 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.  As mentioned above, the overall employee benefits increase was partially mitigated by a $1.1 million reduction in the deferred compensation plan obligation due to market declines.  These increases were balanced by strong discretionary expense management as demonstrated by the 146 basis point year-over-year decrease in the efficiency ratio to 53.62% for the fourth quarter of 2018.

Excluding merger-related expenses in both years, non-interest expense during the twelve months of 2018 increased $27.4 million, or 12.5%, compared to the prior year period, reflecting the acquisition of both FTSB and FFKT, partially offset by strong discretionary expense management.

Provision for Income Taxes
The effective income tax rate and associated provision for income taxes for the fourth quarter of 2018 are reflective of the late-2017 passage of the "Tax Cuts and Jobs Act", lowering the statutory Federal income tax rate for corporations to 21%.  During the fourth quarter, the effective tax rate was 19.37% as compared to 59.14% last year, which included the impact of the deferred tax revaluation adjustment, while the provision for income taxes decreased $12.4 million to $10.6 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 December 31, 2018, Tier I leverage was 10.74%, Tier I Risk-Based capital was 15.09%, Total Risk-Based capital was 15.99%, and the Common Equity Tier 1 capital ratio ("CET 1") was 13.14%.  Tangible common equity also remained strong, increasing to 9.28% at period-end from 8.79% as of December 31, 2017.  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 2018.  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 fourth quarter of 2018 at 10:00 a.m. ET on Tuesday, January 29, 2019.  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 10126808.  The replay will begin at approximately 12:00 p.m. ET on January 29, and end at 12 a.m. ET on February 12.  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, June 30, and September 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; 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.

About WesBanco, Inc.
Founded in 1870, WesBanco, Inc. (www.wesbanco.com) is a multi-state, bank holding company with total assets of approximately $12.5 billion (as of December 31, 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 $4.3 billion of assets under management (as of December 31, 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 5
(unaudited, dollars in thousands, except shares and per share amounts)
               
       
For the Three Months Ended
 
For the Twelve Months Ended
STATEMENT OF INCOME
December 31,
 
December 31,
Interest and dividend income
2018
 
2017
 
% Change
 
2018
 
2017
 
% Change
 
Loans, including fees
 $             97,685
 
 $               69,408
 
                      40.7
 
 $          331,961
 
 $             272,007
 
                      22.0
 
Interest and dividends on securities:
                     
   
Taxable
                16,196
 
                    9,948
 
                      62.8
 
                56,898
 
                  38,631
 
                      47.3
   
Tax-exempt
                  5,562
 
                    4,872
 
                      14.2
 
                20,778
 
                  19,489
 
                        6.6
     
Total interest and dividends on securities
                21,758
 
                  14,820
 
                      46.8
 
                77,676
 
                  58,120
 
                      33.6
 
Other interest income
                  1,944
 
                       623
 
                    212.0
 
                  5,320
 
                    2,297
 
                    131.6
          Total interest and dividend income
              121,387
 
                  84,851
 
                      43.1
 
              414,957
 
                332,424
 
                      24.8
Interest expense
                     
 
Interest bearing demand deposits
                  4,000
 
                    2,039
 
                      96.2
 
                13,144
 
                    6,452
 
                    103.7
 
Money market deposits
                  1,683
 
                       805
 
                    109.1
 
                  5,016
 
                    2,775
 
                      80.8
 
Savings deposits
                      452
 
                       189
 
                    139.2
 
                  1,225
 
                       745
 
                      64.4
 
Certificates of deposit
                  3,662
 
                    2,597
 
                      41.0
 
                12,450
 
                  10,108
 
                      23.2
     
Total interest expense on deposits
                  9,797
 
                    5,630
 
                      74.0
 
                31,835
 
                  20,080
 
                      58.5
 
Federal Home Loan Bank borrowings
                  6,191
 
                    3,682
 
                      68.1
 
                23,333
 
                  13,290
 
                      75.6
 
Other short-term borrowings
                  1,221
 
                       489
 
                    149.7
 
                  3,717
 
                    1,442
 
                    157.8
 
Subordinated debt and junior subordinated debt
                  2,411
 
                    1,868
 
                      29.1
 
                  8,836
 
                    7,317
 
                      20.8
     
Total interest expense
                19,620
 
                  11,669
 
                      68.1
 
                67,721
 
                  42,129
 
                      60.7
Net interest income
              101,767
 
                  73,182
 
                      39.1
 
              347,236
 
                290,295
 
                      19.6
 
Provision for credit losses
                  2,854
 
                    2,376
 
                      20.1
 
                  7,764
 
                    9,986
 
                    (22.3)
Net interest income after provision for credit losses
                98,913
 
                  70,806
 
                      39.7
 
              339,472
 
                280,309
 
                      21.1
Non-interest income
                     
 
Trust fees
6,103
 
5,667
 
                        7.7
 
24,623
 
22,740
 
                        8.3
 
Service charges on deposits
7,387
 
5,278
 
                      40.0
 
23,670
 
20,532
 
                      15.3
 
Electronic banking fees
6,604
 
4,788
 
                      37.9
 
23,300
 
19,183
 
                      21.5
 
Net securities brokerage revenue
1,871
 
1,508
 
                      24.1
 
7,186
 
6,672
 
                        7.7
 
Bank-owned life insurance
1,312
 
1,123
 
                      16.8
 
6,427
 
4,794
 
                      34.1
 
Mortgage banking income
1,543
 
1,542
 
                        0.1
 
5,840
 
5,053
 
                      15.6
 
Net securities (losses) / gains
                 (1,303)
 
56
 
               (2,426.8)
 
(900)
 
567
 
                  (258.7)
 
Net (loss)/gain on other real estate owned and other assets
(117)
 
649
 
                  (118.0)
 
524
 
658
 
                    (20.4)
 
Other income
                  3,161
 
2,323
 
                      36.1
 
                  9,606
 
8,641
 
                      11.2
     
Total non-interest income
26,561
 
22,934
 
                      15.8
 
100,276
 
88,840
 
                      12.9
Non-interest expense
                     
 
Salaries and wages
32,389
 
25,786
 
                      25.6
 
114,602
 
97,361
 
                      17.7
 
Employee benefits
7,298
 
6,263
 
                      16.5
 
30,079
 
29,933
 
                        0.5
 
Net occupancy
5,455
 
4,132
 
                      32.0
 
19,165
 
17,101
 
                      12.1
 
Equipment
4,667
 
3,983
 
                      17.2
 
17,207
 
16,026
 
                        7.4
 
Marketing
1,402
 
1,238
 
                      13.2
 
5,368
 
5,720
 
                      (6.2)
 
FDIC insurance
927
 
827
 
                      12.1
 
3,242
 
3,504
 
                      (7.5)
 
Amortization of intangible assets
2,762
 
1,204
 
                    129.4
 
6,980
 
4,940
 
                      41.3
 
Restructuring and merger-related expense
                  1,389
 
                       454
 
                    205.9
 
                17,860
 
                       945
 
                 1,789.9
 
Other operating expenses
                14,701
 
10,950
 
                      34.3
 
                50,721
 
45,330
 
                      11.9
     
Total non-interest expense
70,990
 
54,837
 
                      29.5
 
265,224
 
220,860
 
                      20.1
Income before provision for income taxes
                54,484
 
                  38,903
 
                      40.1
 
              174,524
 
                148,289
 
                      17.7
 
Provision for income taxes
                10,556
 
                  23,006
 
                    (54.1)
 
                31,412
 
                  53,807
 
                    (41.6)
Net Income
 $             43,928
 
 $               15,897
 
                    176.3
 
 $          143,112
 
 $               94,482
 
                      51.5
                             
Taxable equivalent net interest income
 $          103,246
 
 $            75,805
 
                      36.2
 
 $          352,760
 
 $          300,789
 
                      17.3
                             
Per common share data
                     
Net income per common share - basic
 $                 0.80
 
 $                   0.36
 
                    122.2
 
 $                 2.93
 
 $                   2.15
 
                      36.3
Net income per common share - diluted
                     0.80
 
                      0.36
 
                    122.2
 
                     2.92
 
                      2.14
 
                      36.4
Net income per common share - diluted, excluding certain items (1)(2)
                     0.82
 
                      0.66
 
                      24.2
 
                     3.21
 
                      2.45
 
                      31.0
Dividends declared
                     0.29
 
                      0.26
 
                      11.5
 
                     1.16
 
                      1.04
 
                      11.5
Book value (period end)
                  36.24
 
                    31.68
 
                      14.4
 
                  36.24
 
                    31.68
 
                      14.4
Tangible book value (period end) (1)
                  19.63
 
                    18.42
 
                        6.6
 
                  19.63
 
                    18.42
 
                        6.6
Average common shares outstanding - basic
54,598,142
 
44,036,416
 
                      24.0
 
48,889,041
 
44,003,208
 
                      11.1
Average common shares outstanding - diluted
54,706,691
 
           44,109,767
 
                      24.0
 
49,022,990
 
           44,075,293
 
                      11.2
Period end common shares outstanding
        54,598,134
 
           44,043,244
 
                      24.0
 
        54,598,134
 
           44,043,244
 
                      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 6
(unaudited, dollars in thousands)
                         
                     
Selected ratios
                   
 
For the Twelve Months Ended
       
 
December 31,
         
 
2018
 
2017
 
% Change
         
                     
Return on average assets
                 1.26
%
                  0.96
%
                31.25
%
       
Return on average assets, excluding
                   
    after-tax merger-related expenses and
                   
    net deferred tax asset revaluation (1)
                 1.39
 
                  1.09
 
                27.52
         
Return on average equity
                 8.68
 
                  6.83
 
                27.09
         
Return on average equity, excluding
                   
    after-tax merger-related expenses and
                   
    net deferred tax asset revaluation (1)
                 9.54
 
                  7.79
 
                22.46
         
Return on average tangible equity (1)
16.24
 
12.23
 
                32.79
         
Return on average tangible equity, excluding
                   
    after-tax merger-related expenses and
                   
    net deferred tax asset revaluation (1)
               17.78
 
                13.90
 
                27.91
         
Yield on earning assets (2)
                 4.19
 
                  3.93
 
                  6.62
         
Cost of interest bearing liabilities
                 0.92
 
                  0.64
 
                43.75
         
Net interest spread (2)
                 3.27
 
                  3.29
 
                (0.61)
         
Net interest margin (2)
                 3.52
 
                  3.44
 
                  2.33
         
Efficiency (1) (2)
               54.60
 
                56.44
 
                (3.26)
         
Average loans to average deposits
               87.60
 
                89.86
 
                (2.52)
         
Annualized net loan charge-offs/average loans
                 0.06
 
                  0.13
 
               (53.85)
         
Effective income tax rate (3)
               18.00
 
                36.29
 
               (50.40)
         
                     
                     
                     
                     
 
For the Quarter Ended
 
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
Mar. 31,
 
Dec. 31,
 
 
2018
 
2018
 
2018
 
2018
 
2017
 
                     
Return on average assets
1.39
%
1.10
%
1.22
%
1.36
%
0.64
%
Return on average assets, excluding
                   
    after-tax merger-related expenses and
                   
    net deferred tax asset revaluation (1)
1.42
 
1.39
 
1.38
 
1.37
 
1.16
 
Return on average equity
8.94
 
7.50
 
8.77
 
9.70
 
4.48
 
Return on average equity, excluding
                   
    after-tax merger-related expenses and
                   
    net deferred tax asset revaluation (1)
9.16
 
9.47
 
9.90
 
9.76
 
8.17
 
Return on average tangible equity (1)
17.67
 
14.25
 
15.87
 
17.10
 
8.05
 
Return on average tangible equity, excluding
                   
    after-tax merger-related expenses and
                   
    net deferred tax asset revaluation (1)
18.09
 
17.85
 
17.85
 
17.20
 
14.36
 
Yield on earning assets (2)
4.42
 
4.21
 
4.11
 
3.98
 
3.95
 
Cost of interest bearing liabilities
0.97
 
0.95
 
0.91
 
0.80
 
0.71
 
Net interest spread (2)
3.45
 
3.26
 
3.20
 
3.18
 
3.24
 
Net interest margin (2)
3.72
 
3.50
 
3.43
 
3.38
 
3.43
 
Efficiency (1) (2)
53.62
 
55.55
 
54.28
 
55.12
 
55.08
 
Average loans to average deposits
85.94
 
87.56
 
88.15
 
89.26
 
90.26
 
Annualized net loan charge-offs (recoveries)/average loans
0.14
 
(0.02)
 
0.03
 
0.07
 
0.16
 
Effective income tax rate (3)
19.37
 
16.71
 
18.11
 
17.28
 
59.14
 
Trust assets, market value at period end
 $  4,269,961
 
 $     4,743,894
 
 $     4,044,207
 
 $ 4,027,358
 
 $ 3,943,519
 
                     
(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 and twelve 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 7
(unaudited, dollars in thousands, except shares)
             
             % Change
Balance sheets
 
December 31,
   
September 30,
December 31, 2018
Assets
   
2018
 
2017
 
% Change
2018
to Sept. 30, 2018
Cash and due from banks
 
 $           124,650
 
 $          97,746
 
          27.5
 $              184,826
                            (32.6)
Due from banks - interest bearing
 
               44,536
 
             19,826
 
         124.6
                  88,854
                            (49.9)
Securities:
               
 
Equity securities, at fair value
 
               11,737
 
             13,457
 
         (12.8)
                  12,784
                             (8.2)
 
Available-for-sale debt securities, at fair value
 
           2,114,129
 
         1,261,865
 
          67.5
              2,008,232
                               5.3
 
Held-to-maturity debt securities (fair values of $1,020,743; $1,023,784
           
 
and $1,014,361, respectively)
 
           1,020,934
 
         1,009,500
 
            1.1
              1,025,538
                             (0.4)
   
Total securities
 
           3,146,800
 
         2,284,822
 
          37.7
              3,046,554
                               3.3
Loans held for sale
 
                 8,994
 
             20,320
 
         (55.7)
                  55,913
                            (83.9)
Portfolio loans:
               
 
Commercial real estate
 
           3,853,695
 
         2,994,448
 
          28.7
              3,906,221
                             (1.3)
 
Commercial and industrial
 
           1,265,460
 
         1,125,327
 
          12.5
              1,292,073
                             (2.1)
 
Residential real estate
 
           1,611,607
 
         1,353,301
 
          19.1
              1,598,477
                               0.8
 
Home equity
 
             599,331
 
           529,196
 
          13.3
                 604,106
                             (0.8)
 
Consumer
 
             326,188
 
           339,169
 
           (3.8)
                 325,546
                               0.2
Total portfolio loans, net of unearned income
 
           7,656,281
 
         6,341,441
 
          20.7
              7,726,423
                             (0.9)
Allowance for loan losses
 
              (48,948)
 
           (45,284)
 
           (8.1)
                 (48,902)
                             (0.1)
   
Net portfolio loans
 
           7,607,333
 
         6,296,157
 
          20.8
              7,677,521
                             (0.9)
Premises and equipment, net
 
             166,925
 
           130,722
 
          27.7
                 159,284
                               4.8
Accrued interest receivable
 
               38,853
 
             29,728
 
          30.7
                  39,465
                             (1.6)
Goodwill and other intangible assets, net
 
             918,850
 
           589,264
 
          55.9
                 928,083
                             (1.0)
Bank-owned life insurance
 
             225,317
 
           192,589
 
          17.0
                 223,995
                               0.6
Other assets
 
             176,374
 
           155,004
 
          13.8
                 194,984
                             (9.5)
Total Assets
 
 $  12,458,632
 
 $   9,816,178
 
          26.9
 $     12,599,479
                             (1.1)
                       
Liabilities
               
Deposits:
               
 
Non-interest bearing demand
 
 $        2,441,041
 
 $      1,846,748
 
          32.2
 $           2,411,862
                               1.2
 
Interest bearing demand
 
           2,146,508
 
         1,625,015
 
          32.1
              2,187,662
                             (1.9)
 
Money market
 
           1,142,925
 
         1,024,856
 
          11.5
              1,178,950
                             (3.1)
 
Savings deposits
 
           1,645,549
 
         1,269,912
 
          29.6
              1,649,684
                             (0.3)
 
Certificates of deposit
 
           1,455,610
 
         1,277,057
 
          14.0
              1,513,600
                             (3.8)
   
Total deposits
 
           8,831,633
 
         7,043,588
 
          25.4
              8,941,758
                             (1.2)
Federal Home Loan Bank borrowings
 
           1,054,174
 
           948,203
 
          11.2
              1,131,253
                             (6.8)
Other short-term borrowings
 
             290,522
 
           184,805
 
          57.2
                 294,281
                             (1.3)
Subordinated debt and junior subordinated debt
 
             189,842
 
           164,327
 
          15.5
                 189,745
                               0.1
   
Total borrowings
 
           1,534,538
 
         1,297,335
 
          18.3
              1,615,279
                             (5.0)
Accrued interest payable
 
                 4,627
 
               3,178
 
          45.6
                    6,623
                            (30.1)
Other liabilities
 
             109,007
 
             76,756
 
          42.0
                 108,550
                               0.4
Total Liabilities
 
         10,479,805
 
         8,420,857
 
          24.5
            10,672,210
                             (1.8)
                       
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,  44,043,244 and 54,604,294 shares
           
 
issued, respectively; 54,598,134, 43,931,715 and 54,603,967 shares
 
             113,758
 
             91,756
 
          24.0
                 113,758
                                -
 
outstanding, respectively
               
Capital surplus
 
           1,166,701
 
           684,730
 
          70.4
              1,165,006
                               0.1
Retained earnings
 
             737,581
 
           651,357
 
          13.2
                 709,477
                               4.0
Treasury stock (6,160,  0 and 327 shares - at cost, respectively)
 
                  (274)
 
                   -
 
       (100.0)
                       (15)
                       (1,726.7)
Accumulated other comprehensive loss
 
              (37,871)
 
           (31,495)
 
         (20.2)
                 (59,873)
                             36.7
Deferred benefits for directors
 
               (1,068)
 
             (1,027)
 
           (4.0)
                   (1,084)
                               1.5
Total Shareholders' Equity
 
           1,978,827
 
         1,395,321
 
          41.8
              1,927,269
                               2.7
Total Liabilities and Shareholders' Equity
 
 $  12,458,632
 
 $   9,816,178
 
          26.9
 $     12,599,479
                             (1.1)
 
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 December 31,
 
For the Year Ended December 31,
 
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
 $          169,189
            2.21
%
 $            18,593
            0.97
 %
 $                 80,535
        2.24
 %
 $           13,811
            0.85
%
Loans, net of unearned income (1)
          7,685,430
            5.04
 
          6,392,138
            4.31
 
               7,013,877
        4.73
 
         6,358,845
            4.28
 
Securities: (2)
                       
    Taxable
2,317,542
            2.80
 
1,615,700
            2.46
 
2,109,191
        2.70
 
1,591,149
            2.43
 
    Tax-exempt (3)
818,456
            3.44
 
723,569
            4.14
 
768,304
        3.42
 
723,019
            4.15
 
        Total securities
3,135,998
            2.96
 
2,339,269
            2.98
 
2,877,495
        2.89
 
2,314,168
            2.96
 
Other earning assets
               52,691
            7.62
 
               47,659
            4.85
 
                   55,302
        6.37
 
             47,548
            4.58
 
         Total earning assets (3)
      11,043,308
            4.42
%
        8,797,659
            3.95
 %
           10,027,209
        4.19
 %
       8,734,372
            3.93
%
Other assets
1,522,572
   
1,110,285
   
1,310,170
   
1,119,940
   
Total Assets
 $ 12,565,880
   
 $   9,907,944
   
 $      11,337,379
   
 $  9,854,312
   
                         
Liabilities and Shareholders' Equity
                     
Interest bearing demand deposits
 $     2,183,732
            0.73
%
 $     1,645,812
            0.49
 %
 $        1,929,876
        0.68
 %
 $      1,613,451
            0.40
%
Money market accounts
1,153,806
            0.58
 
1,003,186
            0.32
 
1,049,059
        0.48
 
1,012,660
            0.27
 
Savings deposits
1,647,144
            0.11
 
1,257,094
            0.06
 
1,454,525
        0.08
 
1,248,985
            0.06
 
Certificates of deposit
1,486,471
            0.98
 
1,311,331
            0.79
 
1,396,446
        0.89
 
1,383,807
            0.73
 
    Total interest bearing deposits
6,471,153
            0.60
 
          5,217,423
            0.43
 
5,829,906
        0.55
 
         5,258,903
            0.38
 
Federal Home Loan Bank borrowings
1,069,944
            2.30
 
             961,164
            1.52
 
1,121,108
        2.08
 
            965,795
            1.38
 
Other borrowings
301,813
            1.60
 
213,069
            0.91
 
260,388
        1.43
 
187,298
            0.77
 
Subordinated debt and junior subordinated debt
189,769
            5.04
 
             164,285
            4.51
 
176,866
        5.00
 
            164,156
            4.46
 
      Total interest bearing liabilities
8,032,679
            0.97
%
6,555,941
            0.71
 %
7,388,268
        0.92
 %
6,576,152
            0.64
%
Non-interest bearing demand deposits
2,472,076
   
1,864,776
   
2,177,142
   
1,817,782
   
Other liabilities
111,595
   
80,964
   
123,544
   
76,443
   
Shareholders' equity
1,949,530
   
1,406,263
   
1,648,425
   
1,383,935
   
Total Liabilities and Shareholders' Equity
 $ 12,565,880
   
 $   9,907,944
   
 $   11,337,379
   
 $  9,854,312
   
Taxable equivalent net interest spread
 
            3.45
%
 
            3.24
 %
 
        3.27
 %
 
            3.29
%
Taxable equivalent net interest margin
            3.72
%
 
            3.43
 %
 
        3.52
 %
 
            3.44
%
                         
                         
(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 $1.2 million for the three months ended December 31, 2018 and 2017,  and $3.4 million and $3.6 million for the years ended December 31, 2018 and 2017, respectively. Additionally, loan accretion included in interest income on loans acquired from prior acquisitions was $5.9 and $1.0  million for the three months ended December 31, 2018 and 2017, respectively, and $11.7 million and $5.7 million  for the years ended December 31, 2018 and 2017, respectively. Accretion on interest bearing liabilities acquired from the prior acquisitions was $0.5 million and $0.3 million for the three months ended December 31, 2018 and 2017, respectively,and $2.0 million and $1.4 million  for the years ended December 31, 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
Dec. 31,
 
Sept.  30,
 
June 30,
 
Mar. 31,
 
Dec. 31,
Interest income
2018
 
2018
 
2018
 
2018
 
2017
 
Loans, including fees
 $                        97,685
 
 $                86,605
 
 $              78,538
 
 $                69,237
 
 $              69,408
 
Interest and dividends on securities:
                 
   
Taxable
                           16,196
 
                   14,964
 
                 14,194
 
                   11,543
 
                   9,948
   
Tax-exempt
                             5,562
 
                     5,326
 
                   5,055
 
                     4,834
 
                   4,872
     
Total interest and dividends on securities
                           21,758
 
                   20,290
 
                 19,249
 
                   16,377
 
                 14,820
 
Other interest income
                             1,944
 
                     1,498
 
                   1,101
 
                        803
 
                      623
          Total interest and dividend income
                         121,387
 
                 108,393
 
                 98,888
 
                   86,417
 
                 84,851
Interest expense
                 
 
Interest bearing demand deposits
                             4,000
 
                     3,501
 
                   3,150
 
                     2,524
 
                   2,039
 
Money market deposits
                             1,683
 
                     1,360
 
                   1,093
 
                        878
 
                      805
 
Savings deposits
                                452
 
                        352
 
                      227
 
                        189
 
                      189
 
Certificates of deposit
                             3,662
 
                     3,276
 
                   2,977
 
                     2,536
 
                   2,597
     
Total interest expense on deposits
                             9,797
 
                     8,489
 
                   7,447
 
                     6,127
 
                   5,630
 
Federal Home Loan Bank borrowings
                             6,191
 
                     6,691
 
                   5,953
 
                     4,498
 
                   3,682
 
Other short-term borrowings
                             1,221
 
                        965
 
                      973
 
                        558
 
                      489
 
Subordinated debt and junior subordinated debt
                             2,411
 
                     2,315
 
                   2,168
 
                     1,942
 
                   1,868
     
Total interest expense
                           19,620
 
                   18,460
 
                 16,541
 
                   13,125
 
                 11,669
Net interest income
                         101,767
 
                   89,933
 
                 82,347
 
                   73,292
 
                 73,182
 
Provision for credit losses
                             2,854
 
                     1,035
 
                   1,708
 
                     2,168
 
                   2,376
Net interest income after provision for credit losses
                           98,913
 
                   88,898
 
                 80,639
 
                   71,124
 
                 70,806
Non-interest income
                 
 
Trust fees
6,103
 
6,265
 
5,752
 
6,503
 
5,667
 
Service charges on deposits
7,387
 
6,313
 
5,146
 
4,822
 
5,278
 
Electronic banking fees
6,604
 
6,139
 
5,728
 
4,829
 
4,788
 
Net securities brokerage revenue
1,871
 
1,836
 
1,809
 
1,670
 
1,508
 
Bank-owned life insurance
1,312
 
1,232
 
1,128
 
2,756
 
1,123
 
Mortgage banking income
1,543
 
1,521
 
1,670
 
1,004
 
1,542
 
Net securities(losses)/gains
(1,303)
 
84
 
358
 
(39)
 
56
 
Net (loss)/gain on other real estate owned and other assets
(117)
 
150
 
229
 
262
 
649
 
Other income
3,161
 
2,684
 
1,588
 
2,173
 
2,323
     
Total non-interest income
26,561
 
26,224
 
23,408
 
23,980
 
22,934
Non-interest expense
                 
 
Salaries and wages
32,389
 
30,335
 
26,872
 
25,006
 
25,786
 
Employee benefits
7,298
 
7,905
 
7,965
 
6,912
 
6,263
 
Net occupancy
5,455
 
4,957
 
4,103
 
4,656
 
4,132
 
Equipment
4,667
 
4,488
 
4,095
 
3,949
 
3,983
 
Marketing
1,402
 
1,446
 
1,405
 
1,116
 
1,238
 
FDIC insurance
927
 
789
 
868
 
658
 
827
 
Amortization of intangible assets
2,762
 
1,821
 
1,312
 
1,086
 
1,204
 
Restructuring and merger-related expense
1,389
 
10,811
 
                   5,412
 
                        245
 
                      454
 
Other operating expenses
14,701
 
13,568
 
11,511
 
10,943
 
10,950
     
Total non-interest expense
70,990
 
76,120
 
63,543
 
54,571
 
54,837
Income before provision for income taxes
                           54,484
 
                   39,002
 
                 40,504
 
                   40,533
 
                 38,903
 
Provision for income taxes
                           10,556
 
                     6,516
 
                   7,335
 
                     7,004
 
                 23,006
Net Income
 $                        43,928
 
 $                32,486
 
 $              33,169
 
 $                33,529
 
 $              15,897
                         
Taxable equivalent net interest income
 $                     103,246
 
 $            91,348
 
 $          83,691
 
 $            74,577
 
 $          75,805
                         
Per common share data
                 
Net income per common share - basic
 $                            0.80
 
 $                    0.65
 
 $                  0.71
 
 $                    0.76
 
 $                  0.36
Net income per common share - diluted
 $                            0.80
 
 $                    0.64
 
 $                  0.71
 
 $                    0.76
 
 $                  0.36
Net income per common share - diluted, excluding certain items (1)(2)
 $                            0.82
 
 $                    0.81
 
 $                  0.80
 
 $                    0.76
 
 $                  0.66
Dividends declared
 $                            0.29
 
 $                    0.29
 
 $                  0.29
 
 $                    0.29
 
 $                  0.26
Book value (period end)
 $                          36.24
 
 $                  35.30
 
 $                32.68
 
 $                  31.84
 
 $                31.68
Tangible book value (period end) (1)
 $                          19.63
 
 $                  18.54
 
 $                18.59
 
 $                  18.56
 
 $                18.42
Average common shares outstanding - basic
54,598,142
 
50,277,847
 
46,498,305
 
44,050,701
 
44,036,416
Average common shares outstanding - diluted
54,706,691
 
50,432,112
 
46,639,780
 
44,168,242
 
44,109,767
Period end common shares outstanding
54,598,134
 
54,603,967
 
46,643,250
 
44,060,957
 
44,043,244
Full time equivalent employees
                             2,388
 
                     2,404
 
                   2,040
 
                     1,939
 
                   1,940
                         
                         
(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
 
     
Dec. 31,
 
Sept. 30,
 
June 30,
 
Mar. 31,
 
Dec. 31,
 
Asset quality data
2018
 
2018
 
2018
 
2018
 
2017
 
Non-performing assets:
                   
 
Troubled debt restructurings - accruing
 $           5,744
 
 $           6,338
 
 $           6,460
 
 $           6,858
 
 $           6,571
 
 
Non-accrual loans:
                   
   
Troubled debt restructurings
              2,855
 
              2,036
 
              2,514
 
              2,397
 
              2,865
 
   
Other non-accrual loans
            27,845
 
            29,238
 
            29,467
 
            29,989
 
            33,960
 
   
    Total non-accrual loans
            30,700
 
            31,274
 
            31,981
 
            32,386
 
            36,825
 
   
    Total non-performing loans
            36,444
 
            37,612
 
            38,441
 
            39,244
 
            43,396
 
 
Other real estate and repossessed assets
              7,265
 
              6,877
 
              4,384
 
              4,067
 
              5,297
 
   
Total non-performing assets
 $      43,709
 
 $         44,489
 
 $         42,825
 
 $         43,311
 
 $         48,693
 
                         
Past due loans (1):
                   
 
Loans past due 30-89 days
 $      19,569
 
 $         18,016
 
 $         13,357
 
 $         14,536
 
 $         11,172
 
 
Loans past due 90 days or more
              4,077
 
              2,451
 
              1,881
 
              1,579
 
              2,726
 
   
Total past due loans
 $      23,646
 
 $         20,467
 
 $         15,238
 
 $         16,115
 
 $         13,898
 
                         
Criticized and classified loans (2):
                   
 
Criticized loans
 $      51,710
 
 $         46,370
 
 $         34,045
 
 $         33,785
 
 $         36,092
 
 
Classified loans
            31,244
 
            31,437
 
            38,982
 
            34,566
 
            37,858
 
   
Total criticized and classified loans
 $      82,954
 
 $         77,807
 
 $         73,027
 
 $         68,351
 
 $         73,950
 
                         
Loans past due 30-89 days / total portfolio loans
                0.26
%
                0.23
%
                0.20
%
                0.23
%
                0.18
%
Loans past due 90 days or more / total portfolio loans
                0.05
 
                0.03
 
                0.03
 
                0.02
 
                0.04
 
Non-performing loans / total portfolio loans
                0.48
 
                0.49
 
                0.57
 
                0.62
 
                0.68
 
Non-performing assets/total portfolio loans, other
                   
 
real estate and repossessed assets
                0.57
 
                0.58
 
                0.63
 
                0.68
 
                0.77
 
Non-performing assets / total assets
                0.35
 
                0.35
 
                0.39
 
                0.42
 
                0.50
 
Criticized and classified loans / total portfolio loans
                1.08
 
                1.01
 
                1.08
 
                1.08
 
                1.17
 
                         
Allowance for loan losses
                   
Allowance for loan losses
 $      48,948
 
 $         48,902
 
 $         47,638
 
 $         46,334
 
 $         45,284
 
Provision for credit losses
              2,854
 
              1,035
 
              1,708
 
              2,168
 
              2,376
 
Net loan and deposit account overdraft charge-offs
              2,750
 
               (306)
 
                 425
 
              1,063
 
              2,652
 
                         
Annualized net loan charge-offs /average loans
                0.14
 %
              (0.02)
 %
                0.02
 %
                0.07
 %
                0.16
 %
Allowance for loan losses / total portfolio loans
                0.64
 %
                0.63
 %
                0.70
 %
                0.73
 %
                0.71
 %
Allowance for loan losses / non-performing loans
                1.34
x
                1.30
x
                1.24
x
                1.18
x
                1.04
x
Allowance for loan losses / non-performing loans and
                   
 
loans past due
                0.81
x
                0.84
x
                0.89
x
                0.84
x
                0.79
x
                         
                         
     
Quarter Ended
 
     
Dec. 31,
 
Sept. 30,
 
June 30,
 
Mar. 31,
 
Dec. 31,
 
     
2018
 
2018
 
2018
 
2018
 
2017
 
Capital ratios
                   
Tier I leverage capital
              10.74
%
              11.22
%
              10.21
%
              10.56
%
              10.39
%
Tier I risk-based capital
              15.09
 
              14.32
 
              14.26
 
              14.31
 
              14.12
 
Total risk-based capital
              15.99
 
              15.20
 
              15.26
 
              15.35
 
              15.16
 
Common equity tier 1 capital ratio (CET 1)
              13.14
 
              12.41
 
              12.38
 
              12.33
 
              12.14
 
Average shareholders' equity to average assets
              15.51
 
              14.65
 
              13.89
 
              14.02
 
              14.19
 
Tangible equity to tangible assets (3)
                9.28
 
                8.66
 
                8.43
 
                8.46
 
                8.79
 
                         
                         
(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
   
Dec. 31,
 
Sept. 30,
 
June 30,
 
Mar. 31,
 
Dec. 31,
 
Dec. 31,
(unaudited, dollars in thousands, except shares and per share amounts)
2018
 
2018
 
2018
 
2018
 
2017
 
2018
2017
Return on average assets, excluding after-tax merger-related expenses and net deferred tax asset revaluation:
         
 
Net income (annualized)
 $             174,280
 
 $         128,886
 
 $         133,039
 
 $         135,979
 
 $           63,068
 
 $         143,112
 $        94,482
 
Plus: after-tax merger-related expenses (annualized)  (1)
                    4,353
 
              33,885
 
              17,150
 
                   784
 
                1,170
 
              14,109
                614
 
Plus: net deferred tax asset revaluation (annualized)
                         -
 
                      -
 
                      -
 
                      -
 
              50,703
 
                      -
           12,780
 
Net income excluding after-tax merger-related expenses and net deferred tax asset revaluation (annualized)
                178,633
 
            162,771
 
            150,189
 
            136,763
 
            114,941
 
            157,221
         107,876
                           
 
Average total assets
 $     12,565,880
 
 $    11,738,796
 
 $    10,918,731
 
 $      9,993,364
 
 $      9,907,944
 
 $    11,337,379
 $   9,854,312
                           
Return on average tangible assets, excluding after-tax merger-related expenses and net deferred tax asset revaluation
1.42%
 
1.39%
 
1.38%
 
1.37%
 
1.16%
 
1.39%
1.09%
                           
Return on average equity, excluding after-tax merger-related expenses and net deferred tax asset revaluation:
         
 
Net income (annualized)
 $             174,280
 
 $         128,886
 
 $         133,039
 
 $         135,979
 
 $           63,068
 
 $         143,112
 $        94,482
 
Plus: after-tax merger-related expenses (annualized)  (1)
                    4,353
 
              33,885
 
              17,150
 
                   784
 
                1,170
 
              14,109
                614
 
Plus: net deferred tax asset revaluation (annualized)
                         -
 
                      -
 
                      -
 
                      -
 
              50,703
 
                      -
           12,780
 
Net income excluding after-tax merger-related expenses and net deferred tax asset revaluation (annualized)
                178,633
 
            162,771
 
            150,189
 
            136,763
 
            114,941
 
            157,221
         107,876
                           
 
Average total shareholders' equity
             1,949,530
 
         1,719,489
 
         1,517,036
 
         1,401,271
 
         1,406,263
 
         1,648,425
      1,383,935
                           
Return on average tangible equity, excluding after-tax merger-related expenses and net deferred tax asset revaluation
9.16%
 
9.47%
 
9.90%
 
9.76%
 
8.17%
 
9.54%
7.79%
                           
Return on average tangible equity:
                       
 
Net income (annualized)
 $             174,280
 
 $         128,886
 
 $         133,039
 
 $         135,979
 
 $           63,068
 
 $         143,112
 $        94,482
 
Plus: amortization of intangibles (annualized) (1)
                    8,657
 
                5,707
 
                4,156
 
                3,479
 
                3,104
 
                5,514
             3,211
 
Net income before amortization of intangibles (annualized)
                182,937
 
            134,593
 
            137,195
 
            139,458
 
              66,172
 
            148,626
           97,693
                           
 
Average total shareholders' equity
             1,949,530
 
         1,719,489
 
         1,517,036
 
         1,401,271
 
         1,406,263
 
         1,648,425
      1,383,935
 
Less: average goodwill and other intangibles, net of def. tax liability
              (914,214)
 
          (775,267)
 
          (652,318)
 
          (585,711)
 
          (584,227)
 
           (732,978)
       (584,885)
 
Average tangible equity
 $          1,035,316
 
 $         944,222
 
 $         864,718
 
 $         815,560
 
 $         822,036
 
 $         915,447
 $      799,050
                           
Return on average tangible equity
17.67%
 
14.25%
 
15.87%
 
17.10%
 
8.05%
 
16.24%
12.23%
                           
Return on average tangible equity, excluding after-tax merger-related expenses and net deferred tax asset revaluation:
 
Net income (annualized)
 $             174,280
 
 $         128,886
 
 $         133,039
 
 $         135,979
 
 $           63,068
 
 $         143,112
 $        94,482
 
Plus: after-tax merger-related expenses (annualized)  (1)
                    4,353
 
              33,885
 
              17,150
 
                   784
 
                1,170
 
              14,109
                614
 
Plus: net deferred tax asset revaluation (annualized)
                         -
 
                      -
 
                      -
 
                      -
 
              50,703
 
                      -
           12,780
 
Plus: amortization of intangibles (annualized) (1)
                    8,657
 
                5,707
 
                4,156
 
                3,479
 
                3,104
 
                5,514
             3,211
 
Net income before amortization of intangibles and excluding
                       
 
    after-tax merger-related expenses and net deferred tax asset revaluation (annualized)
                187,290
 
            168,478
 
            154,345
 
            140,242
 
            118,045
 
            162,735
         111,087
                           
 
Average total shareholders' equity
             1,949,530
 
         1,719,489
 
         1,517,036
 
         1,401,271
 
         1,406,263
 
         1,648,425
      1,383,935
 
Less: average goodwill and other intangibles, net of def. tax liability
              (914,214)
 
          (775,267)
 
          (652,318)
 
          (585,711)
 
          (584,227)
 
           (732,978)
       (584,885)
 
Average tangible equity
 $          1,035,316
 
 $         944,222
 
 $         864,718
 
 $         815,560
 
 $         822,036
 
 $         915,447
 $      799,050
                           
Return on average tangible equity, excluding after-tax merger-related expenses and net deferred tax asset revaluation
18.09%
 
17.85%
 
17.85%
 
17.20%
 
14.36%
 
17.78%
13.90%
                           
Efficiency ratio:
                       
 
Non-interest expense
 $               70,990
 
 $           76,120
 
 $           63,543
 
 $           54,571
 
 $           54,837
 
 $         265,224
 $      220,860
 
Less: restructuring and merger-related expense
                  (1,389)
 
            (10,811)
 
              (5,412)
 
                 (245)
 
                 (454)
 
             (17,860)
              (945)
 
Non-interest expense excluding restructuring and merger-related expense
                  69,601
 
              65,309
 
              58,131
 
              54,326
 
              54,383
 
            247,364
         219,915
                           
 
Net interest income on a fully taxable equivalent basis
                103,246
 
              91,348
 
              83,691
 
              74,577
 
              75,805
 
            352,760
         300,789
 
Non-interest income
                  26,561
 
              26,224
 
              23,408
 
              23,980
 
              22,934
 
            100,276
           88,840
 
Net interest income on a fully taxable equivalent basis plus non-interest income
 $             129,807
 
 $         117,572
 
 $         107,099
 
 $           98,557
 
 $           98,739
 
 $         453,036
 $      389,629
 
Efficiency Ratio
53.62%
 
55.55%
 
54.28%
 
55.12%
 
55.08%
 
54.60%
56.44%
                           
Net income, excluding net deferred tax asset revaluation and  after-tax merger-related expenses:
  Net income
 $               43,928
 
 $           32,486
 
 $           33,169
 
 $           33,529
 
 $           15,897
 
 $         143,112
 $        94,482
 
Add: Net deferred tax asset revaluation
                         -
 
                      -
 
                      -
 
                      -
 
              12,780
 
                      -
           12,780
 
Add: After-tax merger-related expenses (1)
                    1,097
 
                8,541
 
                4,276
 
                   193
 
                   295
 
              14,109
                614
Net income, excluding net deferred tax asset revaluation and  after-tax merger-related expenses
 $               45,025
 
 $           41,027
 
 $           37,445
 
 $           33,722
 
 $           28,972
 
 $         157,221
 $      107,876
                           
                           
Net Income, excluding net deferred tax asset revaluation and after-tax merger-related expenses per diluted share:
 
Net income per diluted share
 $                   0.80
 
 $               0.64
 
 $               0.71
 
 $               0.76
 
 $               0.36
 
 $               2.92
 $            2.14
 
Add: Net deferred tax asset revaluation per diluted share
                         -
 
                      -
 
                      -
 
                      -
 
                  0.29
 
                      -
               0.29
 
Add: After-tax merger-related expenses per diluted share (1)
                      0.02
 
                  0.17
 
                  0.09
 
                      -
 
                  0.01
 
                  0.29
               0.02
Net income, excluding net deferred tax asset revaluation and  after-tax merger-related expenses per diluted share
 $                   0.82
 
 $               0.81
 
 $               0.80
 
 $               0.76
 
 $               0.66
 
 $               3.21
 $            2.45
                           
                           
   
Period End 
     
   
Dec. 31,
Sept. 30,
June 30,
Mar. 31,
Dec. 31,
   
   
2018
 
2018
 
2018
 
2018
 
2017
     
Tangible book value per share:
                       
 
Total shareholders' equity
 $          1,978,827
 
 $      1,927,269
 
 $      1,524,106
 
 $      1,403,026
 
 $      1,395,321
     
 
Less:  goodwill and other intangible assets, net of def. tax liability
              (906,887)
 
          (915,022)
 
          (657,111)
 
          (585,316)
 
          (583,903)
     
 
Tangible equity
             1,071,940
 
         1,012,247
 
            866,995
 
            817,711
 
            811,418
     
                           
 
Common shares outstanding
           54,598,134
 
       54,603,967
 
       46,643,250
 
       44,060,957
 
       44,043,244
     
                           
Tangible book value per share
 $                 19.63
 
 $             18.54
 
 $             18.59
 
 $             18.56
 
 $             18.42
     
                           
Tangible equity to tangible assets:
                       
 
Total shareholders' equity
 $          1,978,827
 
 $      1,927,269
 
 $      1,524,106
 
 $      1,403,026
 
 $      1,395,321
     
 
Less:  goodwill and other intangible assets, net of def. tax liability
              (906,887)
 
          (915,022)
 
          (657,111)
 
          (585,316)
 
          (583,903)
     
 
Tangible equity
             1,071,940
 
         1,012,247
 
            866,995
 
            817,711
 
            811,418
     
                           
 
Total assets
           12,458,632
 
       12,599,479
 
       10,946,584
 
       10,245,419
 
         9,816,178
     
 
Less:  goodwill and other intangible assets, net of def. tax liability
              (906,887)
 
          (915,022)
 
          (657,111)
 
          (585,316)
 
          (583,903)
     
 
Tangible assets
 $     11,551,745
 
 $    11,684,457
 
 $    10,289,473
 
 $      9,660,103
 
 $      9,232,275
     
                           
Tangible equity to tangible assets
9.28%
 
8.66%
 
8.43%
 
8.46%
 
8.79%
     
                           
                           
(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 Monday, January 28, 2019 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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