WesBanco, Inc. (NASDAQ:WSBC) Q3 2023 Earnings Conference Call October 26, 2023 3:00 PM ET Company Participants John Iannone - Senior Vice President-Investor Relations Jeff Jackson - President and Chief Executive Officer Dan Weiss - Executive Vice President and Chief Financial Officer Conference Call Participants Casey Whitman - Piper Sandler Daniel Tamayo - Raymond James Manuel Navas - D.A. Davidson Russell Gunther - Stephens Inc. Dave Bishop - Hovde Group Karl Shepard - RBC Capital Markets Daniel Cardenas ...

Financial Performance - Pre-tax, pre-provision income reached $57 million, a 9.1% year-over-year increase[4] - Net income available to common shareholders was $42.4 million, with diluted earnings per share at $0.71[4] - Return on average tangible equity was 13%, up 63 basis points year-over-year[5] Loan and Deposit Growth - Total loan growth showed a 9% year-over-year increase and an 8% year-to-date annualized growth[4] - Total deposits remained stable at $12.9 billion, consistent with the previous quarter[12] - Commercial and industrial (C&I) loans increased at an annualized rate of 10.2% quarter-over-quarter[8] Asset Quality and Capital - Non-performing assets to total assets ratio was 0.19%[4] - Tangible equity to tangible assets ratio stood at 8.24%[4] - Uninsured deposits accounted for 23.5% of total deposits after exclusions[11] Net Interest Margin - Net interest margin was 3.18%, a 15 basis points increase year-over-year[5] - Total deposit funding costs, including non-interest bearing deposits, were 103 basis points[18]

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Wesbanco's financial statements show **$17.36 billion** in total assets by June 30, 2023, with Q2 net income of **$44.9 million** [Note 1. Summary of Significant Accounting Policies](index=9&type=section&id=Note%201.%20Summary%20of%20Significant%20Accounting%20Policies) Wesbanco adopted **ASU 2022-02** on January 1, 2023, discontinuing **TDR** accounting and replacing it with **MBEFD** guidance - Effective January 1, 2023, the company adopted **ASU 2022-02**, discontinuing **Troubled Debt Restructuring (TDR) accounting**. It was replaced by new guidance on **Modifications for Borrowers Experiencing Financial Difficulty (MBEFD)**, which **eliminates the need to measure economic concessions** on loan modifications[21](index=21&type=chunk)[31](index=31&type=chunk) [Note 3. Securities](index=12&type=section&id=Note%203.%20Securities) Total debt securities had **$3.40 billion** fair value and **$3.90 billion** amortized cost, with **$501.6 million** gross unrealized losses Debt Securities Portfolio Composition (in thousands) | Category | Amortized Cost (in thousands) | Fair Value (in thousands) | | :--- | :--- | :--- | | **Available-for-sale** | **$2,678,107** | **$2,329,222** | | Residential mortgage-backed securities | $2,023,958 | $1,721,887 | | Commercial mortgage-backed securities | $313,521 | $305,242 | | **Held-to-maturity** | **$1,224,470** | **$1,072,229** | | Obligations of states and political subdivisions | $1,157,889 | $1,010,481 | | **Total Debt Securities** | **$3,902,577** | **$3,401,451** | - Gross unrealized losses on available-for-sale debt securities totaled **$349.0 million** as of June 30, 2023, primarily in residential mortgage-backed securities (**$302.1 million**). The company does not believe these securities are impaired due to credit quality and does not intend to sell them before recovery[46](index=46&type=chunk) - The allowance for credit losses on held-to-maturity securities was **$193 thousand** at June 30, 2023, down from **$220 thousand** at year-end 2022[45](index=45&type=chunk) [Note 4. Loans and the Allowance for Credit Losses](index=15&type=section&id=Note%204.%20Loans%20and%20the%20Allowance%20for%20Credit%20Losses) Total portfolio loans grew to **$11.13 billion**, with ACL at **$130.3 million**, and non-performing loans decreased to **$31.6 million** Loan Portfolio Composition (in thousands) | Loan Category | June 30, 2023 (in thousands) | % of Total | | :--- | :--- | :--- | | Total Commercial Real Estate | $6,295,467 | 56.3% | | Commercial and Industrial | $1,558,491 | 14.0% | | Residential Real Estate | $2,341,928 | 21.0% | | Home Equity & Consumer | $934,078 | 8.4% | | **Total Portfolio Loans** | **$11,129,964** | **99.7%** | Allowance for Credit Losses Roll-Forward (Six Months Ended June 30, 2023, in thousands) | Description | Loans (in thousands) | Loan Commitments (in thousands) | Total (in thousands) | | :--- | :--- | :--- | :--- | | **Beginning Balance (Dec 31, 2022)** | **$117,790** | **$8,368** | **$126,158** | | Provision for Credit Losses | $4,876 | $1,756 | $6,632 | | Net Charge-offs | $(2,500) | - | $(2,500) | | **Ending Balance (June 30, 2023)** | **$120,166** | **$10,124** | **$130,290** | - Non-performing loans stood at **$31.6 million** (**0.28% of total loans**) as of June 30, 2023, a decrease from **$41.4 million** (**0.39% of total loans**) at December 31, 2022[62](index=62&type=chunk)[191](index=191&type=chunk) [Note 5. Derivatives and Hedging Activities](index=25&type=section&id=Note%205.%20Derivatives%20and%20Hedging%20Activities) Wesbanco uses derivatives with **$1.2 billion** notional for risk management, recording **$78.1 million** in assets and **$77.6 million** in liabilities Derivative Instruments (in thousands) | Derivative Type | Notional Amount (in thousands) | Asset Fair Value (in thousands) | Liability Fair Value (in thousands) | | :--- | :--- | :--- | :--- | | Interest rate swaps and caps | $1,243,199 | $77,753 | $77,458 | | Interest rate lock commitments | $33,293 | $0 | $171 | | Forward TBA contracts | $51,000 | $322 | $0 | | **Total** | | **$78,075** | **$77,629** | - The company recognized income from swap and cap fees of **$4.3 million** for the six months ended June 30, 2023, compared to **$1.0 million** for the same period in 2022[80](index=80&type=chunk) [Note 11. Business Segments](index=33&type=section&id=Note%2011.%20Business%20Segments) Wesbanco operates through Community Banking and Trust and Investment Services, generating **$83.0 million** and managing **$5.1 billion** in assets Segment Net Income (Six Months Ended June 30, 2023, in thousands) | Segment | Net Income (in thousands) | | :--- | :--- | | Community Banking | $83,046 | | Trust and Investment Services | $4,175 | | **Total Net Income** | **$87,221** | - The Trust and Investment Services segment managed or held in custody approximately **$5.1 billion** in assets at June 30, 2023, up from **$4.8 billion** a year prior[126](index=126&type=chunk) Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2023 (in thousands) | December 31, 2022 (in thousands) | | :--- | :--- | :--- | | **Total Assets** | **$17,356,954** | **$16,931,905** | | Net Portfolio Loans | $11,009,798 | $10,584,938 | | Total Securities | $3,565,447 | $3,789,055 | | **Total Liabilities** | **$14,891,956** | **$14,505,243** | | Total Deposits | $12,861,434 | $13,131,090 | | Total Borrowings | $1,763,140 | $1,121,473 | | **Total Shareholders' Equity** | **$2,464,998** | **$2,426,662** | Consolidated Income Statement Highlights (in thousands, except per share data) | Metric | Three Months Ended June 30, 2023 (in thousands) | Three Months Ended June 30, 2022 (in thousands) | Six Months Ended June 30, 2023 (in thousands) | Six Months Ended June 30, 2022 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $121,567 | $112,228 | $245,898 | $219,938 | | Provision for Credit Losses | $3,028 | $(812) | $6,605 | $(4,250) | | Non-Interest Income | $31,841 | $26,983 | $59,493 | $57,365 | | Non-Interest Expense | $96,437 | $87,019 | $192,560 | $174,569 | | **Net Income** | **$44,880** | **$42,748** | **$87,221** | **$86,870** | | **Diluted EPS** | **$0.71** | **$0.67** | **$1.38** | **$1.34** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q2 net income rose **5.2%** due to higher net interest income and margin expansion, offset by increased credit loss provision and expenses [Earnings Summary](index=36&type=section&id=Earnings%20Summary) Q2 2023 net income available to common shareholders was **$42.3 million** (**$0.71** diluted EPS), driven by **8.3%** net interest income growth Quarterly Earnings Performance | Metric | Q2 2023 (in millions) | Q2 2022 (in millions) | | :--- | :--- | :--- | | Net Income (Common) | $42.3M | $40.2M | | Diluted EPS | $0.71 | $0.67 | - Key drivers for Q2 2023 performance include an **8.3% increase in net interest income**, a **$3.0 million provision for credit losses** (compared to a **$0.8 million release** in Q2 2022), an **18.0% increase in non-interest income**, and a **10.8% rise in non-interest expense**[137](index=137&type=chunk)[138](index=138&type=chunk)[139](index=139&type=chunk)[140](index=140&type=chunk) [Financial Condition](index=42&type=section&id=Financial%20Condition) Total assets increased **2.5%** to **$17.4 billion**, driven by **4.0%** loan growth, funded by **57.2%** increased borrowings as deposits declined - Total portfolio loans increased by **$427.2 million** (**4.0%**) since December 31, 2022, driven by growth in improved property and residential real estate loans[171](index=171&type=chunk)[186](index=186&type=chunk) - Total deposits decreased by **$269.7 million** (**2.1%**) since year-end, with a notable **8.8% decline** in non-interest bearing demand deposits, partially offset by an **8.4% increase** in certificates of deposit[171](index=171&type=chunk)[199](index=199&type=chunk) - To fund loan growth amidst deposit outflows, total borrowings increased by **$641.7 million** (**57.2%**), primarily through a **$675.0 million increase** in FHLB borrowings[171](index=171&type=chunk)[202](index=202&type=chunk) [Capital Resources](index=49&type=section&id=Capital%20Resources) Shareholders' equity increased **$38.3 million** to **$2.5 billion**, with all regulatory capital ratios exceeding well-capitalized minimums Regulatory Capital Ratios (Wesbanco, Inc.) | Ratio | June 30, 2023 | Well-Capitalized Minimum | | :--- | :--- | :--- | | Common Equity Tier 1 | 11.03% | 6.50% | | Tier 1 Capital | 12.12% | 8.00% | | Total Capital | 14.83% | 10.00% | | Tier 1 Leverage | 9.78% | 5.00% | - The company repurchased **162,700 shares** of common stock for **$3.7 million** during the first six months of 2023. As of June 30, 2023, **1,021,901 shares** remained authorized for repurchase[206](index=206&type=chunk) [Liquidity Risk](index=50&type=section&id=Liquidity%20Risk) Wesbanco maintains strong liquidity with **$3.3 billion** in FHLB credit, and uninsured deposits estimated at **$3.0 billion** - Uninsured deposits totaled **$3.9 billion** (**30% of total deposits**). After excluding **$846.6 million** in collateralized public funds, the uninsured portion is **$3.0 billion** (**24% of total deposits**)[213](index=213&type=chunk) - The company has significant additional funding sources, including **$3.3 billion** in available FHLB credit, **$235.0 million** in overnight lines of credit, and access to the Federal Reserve's Bank Term Funding Program (BTFP) with **$615.5 million** in qualifying securities[214](index=214&type=chunk)[215](index=215&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=53&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Wesbanco's primary market risk is interest rate risk, with simulation models showing asset sensitivity where a **+100 bps** rate shock increases net interest income by **2.5%** Net Interest Income Sensitivity (as of June 30, 2023) | Rate Shock (bps) | % Change in NII over 1 Year | ALCO Guideline | | :--- | :--- | :--- | | +200 | 5.0% | (10.0%) | | +100 | 2.5% | (7.5%) | | -100 | (2.7%) | (7.5%) | | -200 | (6.3%) | (10.0%) | - Management employs several strategies to manage interest rate risk, including increasing variable-rate loans, selling longer-term mortgages, growing demand deposits, and using back-to-back loan swaps[245](index=245&type=chunk) [Item 4. Controls and Procedures](index=55&type=section&id=Item%204.%20Controls%20and%20Procedures) The CEO and CFO concluded that **disclosure controls and procedures were effective** as of June 30, 2023, with no material changes to internal controls - Management concluded that **disclosure controls and procedures were effective** as of the end of the period covered by the report[246](index=246&type=chunk) - No changes in internal control over financial reporting occurred during the fiscal quarter that materially affected, or are reasonably likely to materially affect, the company's internal controls[248](index=248&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=56&type=section&id=Item%201.%20Legal%20Proceedings) Wesbanco is involved in various ordinary course legal proceedings, none of which management expects to result in a **material loss** - The company is involved in various lawsuits and claims in the ordinary course of business but does not expect any to result in a **material loss**[250](index=250&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=56&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Wesbanco repurchased **243,131 shares** at **$24.35** average price during Q2 2023, with **1,021,901 shares** remaining authorized Share Repurchase Activity (Q2 2023) | Period | Total Shares Purchased | Average Price Paid ($) | | :--- | :--- | :--- | | April 2023 | 49,321 | $29.23 | | May 2023 | 121,246 | $22.20 | | June 2023 | 72,564 | $24.62 | | **Total Q2** | **243,131** | **$24.35** | - As of June 30, 2023, **1,021,901 shares** remained authorized for repurchase under the current plan[251](index=251&type=chunk)[252](index=252&type=chunk)

WesBanco, Inc. (NASDAQ:WSBC) Q2 2023 Earnings Conference Call July 26, 2023 10:00 AM ET Company Participants John Iannone – Senior Vice President-Investor Relations Todd Clossin – President and Chief Executive Officer Jeff Jackson – Senior Executive Vice President and Chief Operating Officer Dan Weiss – Executive Vice President and Chief Financial Officer Conference Call Participants Russell Gunther – Stephens Dave Bishop – Hovde Group Daniel Tamayo – Raymond James Karl Shepard – RBC Capital Markets Casey W ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-39442 WESBANCO, INC. (Exact name of Registrant as specified in its charter) 1 Bank Plaza, Wheeling, WV 26003 (Address of principal ex ...

Financial Data and Key Metrics Changes - For Q1 2023, the company reported net income available to common shareholders of $42.3 million, with diluted earnings per share of $0.71, excluding after-tax merger and restructuring charges [7][24] - The return on average assets was 1.01%, and return on tangible equity was 13.5% [8] - Total assets reached $17.3 billion, with total portfolio loans of $10.9 billion and securities of $3.7 billion [25] Business Line Data and Key Metrics Changes - Total loan growth was 11.9% year-over-year, with residential real estate loans benefiting from retaining approximately 70% of originated mortgages [12][13] - Commercial loan growth was 9% year-over-year, with a pipeline of $1.1 billion, reflecting a 25% increase since year-end [15] - Noninterest income decreased to $27.7 million, down $2.7 million year-over-year, primarily due to lower bank-owned life insurance and mortgage banking income [30] Market Data and Key Metrics Changes - Total deposits at the end of Q1 were $12.9 billion, down 2% or $260 million compared to December 31, 2022 [27] - The net interest margin increased to 3.36%, up 41 basis points year-over-year, but decreased 13 basis points from the previous quarter [28] - Average first quarter C&I line utilization was 32.5%, a year-over-year decrease of approximately 350 basis points [25] Company Strategy and Development Direction - The company is focused on long-term sustainable growth through disciplined expense management and maintaining high credit standards [9][18] - Plans to hire additional commercial bankers primarily in C&I, while monitoring the operating environment [19] - The company aims to strengthen diversified earning streams and enhance customer service through robust digital services [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate broader industry volatility and maintain credit quality [5][6] - The outlook for 2023 anticipates Fed funds to peak at 5.25% and expects deposit betas to be lower than peers [37] - Management acknowledged potential margin compression due to rising funding costs and ongoing economic uncertainty [48] Other Important Information - The company received recognition for soundness, profitability, and customer service, being named one of America's best banks for the 13th time since 2010 [21][23] - The capital position remains solid, with regulatory ratios above well-capitalized standards [34] Q&A Session Summary Question: Margin pressure expectations over the next few quarters - Management indicated that while there may be some margin compression, they are slightly asset sensitive and have seen improvements in commercial loan rates [46][49] Question: Impact of Fed actions on margin and funding - Management noted that if the Fed stops increasing rates, it could ease pressure on margins, allowing for better management of the deposit base [54] Question: Loan demand trends and line utilization - Management explained that higher interest rates have led to decreased line utilization, but they maintain a robust loan pipeline [56][60] Question: Non-interest bearing deposit mix shift - Management discussed efforts to generate core deposits and the potential for higher non-interest bearing deposits compared to pre-pandemic levels [66][70] Question: Office portfolio risk assessment - Management expressed confidence in their office portfolio, emphasizing the suburban nature of their loans and careful monitoring of occupancy rates [72][76]

First Quarter 2023 Earnings Call Presentation 24 April 2023 Forward-Looking Statements and Non-GAAP Financial Measures 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, 2022 and do ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-39442 WESBANCO, INC. (Exact name of Registrant as specified in its charter) | | | (State or other jurisdiction of incorporation or organiz ...

WesBanco, Inc. (NASDAQ:WSBC) Q4 2022 Earnings Conference Call January 25, 2023 10:00 AM ET Company Participants John Iannone - Senior Vice President, Investor Relations Todd Clossin - President and Chief Executive Officer Jeff Jackson - Senior Executive Vice President and Chief Operating Officer Dan Weiss - Executive Vice President and Chief Financial Officer Conference Call Participants Daniel Tamayo - Raymond James Karl Shepard - RBC Capital Markets Casey Whitman - Piper Sandler Catherine Mealor - KBW Man ...

Fourth Quarter 2022 Earnings Call Presentation 24 January 2023 Forward-Looking Statements and Non-GAAP Financial Measures 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, 2021 and ...