WesBanco Announces Third Quarter 2020 Financial Results

 

Wheeling, WV, October 21, 2020 – 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, 2020. Reflecting the impact from the 2020 adoption of the new Current Expected Credit Losses (“CECL”) accounting standard, net income for the three months ended September 30, 2020 was $41.3 million, with diluted earnings per share of $0.61, compared to $37.3 million and $0.68 per diluted share, respectively, for the third quarter of 2019. For the nine months ended September 30, 2020, net income was $69.2 million, or $1.03 per diluted share, compared to $122.5 million, or $2.24 per diluted share, for the 2019 period. Net income excluding after-tax restructuring and merger-related expenses for the three months ended September 30, 2020, was $44.2 million, or $0.66 per diluted share, as compared to $38.7 million and $0.71 per diluted share, respectively, in the prior year quarter (non-GAAP measures). On the same basis, net income for the nine months ended September 30, 2020 was $76.5 million, or $1.14 per diluted share, as compared to $2.31 per diluted share in the prior year period (non-GAAP measures).

 

 

For the Three Months Ended September 30,

 

 

For the Nine Months Ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

(unaudited, dollars in thousands,

except per share amounts)

 

Net

Income

 

 

Diluted

Earnings

Per Share

 

 

Net

Income

 

 

Diluted

Earnings

Per Share

 

 

Net Income

Diluted

Earnings

Per Share

 

 

Net

Income

 

 

Diluted

Earnings

Per Share

 

Net income (Non-GAAP)(1)

 

$

44,155

 

 

$

0.66

 

 

$

38,681

 

 

$

0.71

 

 

$

76,489

 

 

$

1.14

 

 

$

126,349

 

 

$

2.31

 

Less: After tax merger-related expenses

 

 

(2,850

)

 

 

(0.05

)

 

 

(1,334

)

 

 

(0.03

)

 

 

(7,300

)

 

 

(0.11

)

 

 

(3,852

)

 

 

(0.07

)

Net income (GAAP)

 

$

41,305

 

 

$

0.61

 

 

$

37,347

 

 

$

0.68

 

 

$

69,189

 

 

$

1.03

 

 

$

122,497

 

 

$

2.24

 

(1)

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

(2)

For the third quarter of 2020, after tax merger-related expenses totaled $0.5 million, and after tax restructuring expenses from financial center optimization totaled $2.3 million.

 

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

 

WesBanco believes that pre-tax, pre-provision income (non-GAAP measure) provides a more comparable year-over-year measure as it removes the impact of the new CECL accounting standard implemented earlier this year. For the three months ended September 30, 2020, pre-tax, pre-provision income, excluding merger-related expenses, increased 33.8% year-over-year to $68.9 million compared to $51.5 million. On the same basis, pre-tax, pre-provision income, for the nine months ended September 30, 2020, increased 20.5% year-over-year to $197.7 million compared to $164.0 million. In addition, on the same basis, the return on average assets was 1.64% for the three month period and 1.61% for the nine month period. WesBanco believes that these non-GAAP financial measures are useful to investors as they enhance investors’ understanding of the company’s business and performance.

 

Financial and operational highlights during the quarter ended September 30, 2020:

 

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

 

Capital was enhanced with the issuance of $150 million of non-cumulative perpetual preferred stock

 

Organic loan growth was 10.0% year-over-year, driven by WesBanco’s support of small businesses impacted by the pandemic, as well as the commercial real estate loan category

 

o

Commercial real estate loans increased organically 4.9% year-over-year due to new loan production, funding of construction loans originated during 2019, and lower payoffs compared to last year

 

o

Funding of nearly 7,200 loans totaling approximately $853.1 million through the Small Business Administration’s Payroll Protection Program (“SBA PPP”), as established by the CARES Act

 

Pandemic-related loan deferrals have continued to decline and, as of October 16, represent 4.9% of total loans

 

Organic deposit growth, excluding certificates of deposit, was 12.9% year-over-year, driven by growth in demand deposits

 

Mortgage banking income increased 228.0% year-over-year to a record $8.5 million due to strong originations and organic growth in the current low interest rate environment

 

Continued expense management demonstrated by a year-to-date efficiency ratio of 56.15% (non-GAAP measure)

 

On August 27, 2020, WesBanco Bank announced the acceleration of its financial center optimization strategy that will consolidate 25 locations by early 2021, with expected gross cost savings of approximately $6.0 to $6.5 million

 

Key credit quality metrics such as non-performing assets, past due loans, and net loan charge-offs, as percentages of total portfolio loans, have remained at low levels and favorable to peer bank averages, those with total assets between $10 billion and $25 billion, for the four quarters prior to the current earnings period

 


The following information was filed by Wesbanco Inc (WSBC) on Wednesday, October 21, 2020 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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