WesBanco(WSBC) - 2022 Q4 - Annual Report

Financial Performance - As of December 31, 2022, Wesbanco's total assets were approximately $16.9 billion[14] - For the year ended December 31, 2022, Wesbanco declared cash dividends of approximately $10.1 million to preferred shareholders and $81.3 million to common shareholders[44] - Wesbanco's Common Equity Tier 1 (CET1) ratio was 11.20%, Tier 1 capital ratio was 12.33%, and total capital ratio was 15.11%, all exceeding minimum requirements[61] - Wesbanco Bank's CET1 ratio was 12.22%, Tier 1 capital ratio was 12.22%, and total capital ratio was 12.81% as of December 31, 2022, indicating strong capital adequacy[61] - Wesbanco's leverage ratio was 9.90% as of December 31, 2022, indicating a strong capital position relative to its total assets[61] - Wesbanco Bank is classified as "well capitalized" under FDIC regulations, allowing it to pay dividends without restrictions as long as it remains adequately capitalized[45] - Wesbanco could receive up to $116.8 million in dividends from Wesbanco Bank without prior regulatory approval as of December 31, 2022[48] Employee and Workforce - Wesbanco employed 2,426 full-time equivalent employees, with an average tenure of approximately 10 years[27] - The turnover rate for Wesbanco's employees in 2022 was 18.98%, while the turnover rate for officers was 9.13%[28] - The company has a diverse workforce, with 9.6% of employees being minorities and 53.6% of officers being women[28] - The company has engaged in leadership training and talent development programs, contributing to its recognition as one of the best workplaces in several markets[32] - Wesbanco's corporate culture emphasizes customer and employee-centric values, focusing on long-term relationships and community engagement[29] Community Engagement and Philanthropy - Wesbanco made over $1.2 million in philanthropic donations in support of communities across its footprint in the past year[33] - Wesbanco originated over $1.9 billion in community development loans in the past five years, supporting local communities[97] - Wesbanco CDC has made over 219 loans totaling over $167 million, creating over 6,200 jobs in low-income, distressed communities[96] - The FDIC assigned Wesbanco an "Outstanding" rating for community development performance for the period of October 2016 through July 2019, marking the seventh consecutive "Outstanding" CRA rating[95] - Wesbanco's commitment to community development includes thousands of hours of employee volunteer work and significant philanthropic donations[97] - Wesbanco has been recognized with the "America Saves Designation of Savings Excellence for Banks" for seven consecutive years[96] - The bank has deployed hundreds of thousands of dollars in philanthropic donations to support local organizations[97] - Wesbanco has leveraged its membership in the Federal Home Loan Bank to sponsor Affordable Housing Program grant applications[97] - The bank's commitment to community development includes thousands of hours of technical assistance and financial education provided by employees[97] - Wesbanco's New Markets Loan Program was recognized with a Community Commitment Award by the ABA Foundation[96] Regulatory Compliance and Capital Management - Wesbanco is subject to enhanced prudential supervision due to exceeding the $10 billion asset threshold[36] - The company is subject to the Durbin Amendment, which caps debit card interchange fees at $0.21 plus an additional 0.05% of the transaction value, affecting its interchange income since July 2019[77] - Wesbanco's total assets exceeded $15 billion as of December 31, 2022, affecting the treatment of trust preferred securities in its capital calculations[62] - The Federal Reserve Board requires a minimum CET1 ratio of at least 4.5%, Tier 1 capital ratio of at least 6%, and total capital ratio of at least 8%[57] - The Dodd-Frank Act requires annual company-run stress tests for bank holding companies with total consolidated assets greater than $100 billion, but Wesbanco is not subject to these rules as it has less than $100 billion in average total consolidated assets[78] - Wesbanco is not subject to the Federal Reserve Enhanced Prudential Standards as it currently has less than $50 billion in consolidated assets[81] - The Volcker Rule limits Wesbanco's ability to engage in proprietary trading and invest in hedge funds or private equity funds, with compliance requirements revised effective January 1, 2020[72] - Wesbanco's gross consolidated trading assets and liabilities have been below $1 billion for four consecutive quarters, allowing it to meet the limited trading compliance presumption under the Volcker Rule[72] - Wesbanco made a timely permanent election to exclude accumulated other comprehensive income from regulatory capital[61] - The Dodd-Frank Act made changes affecting securitization markets, requiring sponsors to retain at least 5% of the credit risk in securitizations[82] Branch and ATM Operations - The company operates 194 branches and 188 ATMs across several states, including West Virginia and Ohio[14] - Wesbanco has 194 branches and 188 ATM machines across multiple states, enhancing its market presence[14] Economic and Legislative Context - The Economic Aid Act provided extensions and amendments to the CARES Act, allowing for additional funding under the Paycheck Protection Program (PPP) through March 31, 2021[86] - The Paycheck Protection Program Flexibility Act allowed borrowers additional time and flexibility to use PPP loan proceeds, reflecting the ongoing impact of the COVID-19 pandemic[86] - The Economic Aid Act extended the relief for troubled debt restructuring (TDRs) until December 31, 2021, allowing banks to modify loans without TDR classification[87] - The Federal Reserve's Main Street Lending Program (MSLP) was terminated as of January 8, 2021, impacting lending to small and medium-sized businesses[88] - The CARES Act established the Paycheck Protection Program (PPP) to provide guaranteed loans to eligible businesses during the COVID-19 pandemic, which Wesbanco participates in[86] - The three primary banking regulators are expected to release a joint interagency proposal for CRA modernization in 2023[98]