Investor Presentation (Q1 2021) (WSBC financials as of the three months ended 31 December 2020)
John Iannone Senior Vice President, Investor & Public Relations 304-905-7021 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, 2019 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, 2020, 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 and under “Risk Factors” in Part II, Item 1A of WesBanco’s March 31, June 30, and September 30, 2020 Quarterly Reports on Form 10-Q. Such statements are subject to important factors that could cause actual results to differ materially from those contemplated by such statements, including, without limitation, the effects of changing regional and national economic conditions including the effects of the COVID-19 pandemic; 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. In addition to the results of operations presented in accordance with Generally Accepted Accounting Principles (GAAP), WesBanco's management uses, and this presentation contains or references, certain non-GAAP financial measures, such as pre-tax pre-provision income, tangible common equity/tangible assets; net income excluding after-tax restructuring and merger-related expenses; efficiency ratio; return on average assets; and return on average tangible equity. WesBanco believes these financial measures provide information useful to investors in understanding our operational performance and business and performance trends which facilitate comparisons with the performance of others in the financial services industry. Although WesBanco believes that these non- GAAP financial measures enhance investors' understanding of WesBanco's business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. The non-GAAP financial measures contained therein should be read in conjunction with the audited financial statements and analysis as presented in the Annual Report on Form 10-K as well as the unaudited financial statements and analyses as presented in the Quarterly Reports on Forms 10-Q for WesBanco and its subsidiaries, as well as other filings that the company has made with the SEC. 1 Evolving Regional Financial Services Institution
Strong market Strong Market Presence in Major Markets presence across legacy and major #16 in OH Pittsburgh W heeling metropolitan markets #11 Pgh Indianapolis MSA Dayton Columbus #9 in MD Morgantown Balanced loan and Baltimore Cincinnati deposit distribution W ashington D.C. #3 in WV across diverse Lexington Park #11 in KY Huntington Charleston regional footprint Louisville Frankfort Lexington Fort Knox Diversified revenue Broad and Balanced Market Distribution Deposits generation engines Loans WV MD supported by unique MD 19% 18% WV long-term advantages 24% 30% KY KY OH 15% Well-executed long- 14% IN IN 26% OH 5% PA term growth strategies 5% PA 20% 12% 12%
Note: loan and deposit data as of 12/31/2020 (loan distribution excludes SBA PPP loans which were internally recorded in WV); location data as of 2/8/2021; market share based on 2 2020 deposit rankings (exclusions: Pittsburgh MSA – BNY Mellon; state of OH – National Consumer Cooperative Bank) (source: S&P Global Market Intelligence) Investment Rationale
Balanced loan and deposit distribution across footprint Balanced and Diversified earnings streams built for long-term success, led by Diversified with century-old, $5.0B trust and wealth management business Unique Long- Strong presence in economically diverse, major markets Term Advantages supported by positive demographic trends Robust legacy deposit base provides pricing advantage
Emphasis on digital capabilities and customer service to ensure relationship value that meets customer needs efficiently and Distinct and effectively Well-Executed Established lending and wealth management teams Long-Term Growth Strategies Focus on positive operating leverage built upon a culture of expense management, enhanced by consolidated back-office functions in lower cost markets
Legacy of Credit Well-capitalized with solid liquidity and strong credit quality and Quality, Risk regulatory compliance Management, and Seven consecutive “outstanding” CRA ratings since 2003 Shareholder Critical, long-term focus on shareholder return through earnings Focus growth and effective capital management
3 Note: trust assets under management as of 12/31/2020 Strategies for Long-Term Success Long-Term Growth Strategies
Diversified Digital Loan Franchise- Long History Banking Portfolio Enhancing of Strong Service with C&I Expansion Wealth Strategies and Home within Management & Core Lending Contiguous Capabilities Deposit Focus Markets Advantage
Focus on Delivering Positive Operating Leverage
Strong Legacy of Credit Quality, Risk Management, and Compliance
5 Diversified Loan Portfolio Focus on strategic diversification, growth, and credit quality $10.8 Billion Loan Portfolio . Balance disciplined loan origination with Comm'l R/E: Commercial Improved & Industrial prudent lending standards Property 15% 47% . Focus on C&I and home equity lending SBA PPP . Key offerings include treasury 7% Consumer management, foreign exchange, cyber 3% security, and lockbox services HELOC 6% . Strong residential mortgage program Comm'l R/E: Land, Construction Residential R/E Average loans to average deposits ratio 6% 16% of 89.6% provides opportunity for continued loan growth Five-Year CAGR . Low cost of deposits provides a Loan Category Total Organic competitive advantage in the typical C&I 18% 5% higher cost Mid-Atlantic market HELOC 9% 1% Manageable lending exposures Comm’l R/E (Total) 20% 1% Consumer (5%) (11%) De-emphasized consumer and several memo CRE categories in recent years Resi R/E Production 15% 9% Note: loan and deposit data as of quarter ending 12/31/2020; CAGR based on 12/31/2015 and excludes SBA PPP loans; “Resi R/E Production” represents residential R/E mortgages kept on the balance sheet plus those originations sold into the secondary market (i.e., ~$825MM during 2020); organ ic CAGR excludes loans acquired from Old Line 6 Bancshares (11/22/19), Farmers Capital Bank Corporation (8/20/2018), First Sentry Bancshares (4/5/2018), and Your Community B ankshares (9/9/2016) Strong Wealth Management Capabilities
Trust & Investments Insurance Trust Assets $5.0B of trust and mutual fund (Market Value as of 12/31) ($B) Personal, commercial, title, assets under management $5.0 health, and life $4.3 CAGR 6,000+ relationships $3.2 4% Expand title business in all $2.3 $2.4 Growth opportunities from markets shale-related private wealth Applied quotation software management 2002 2008 2012 2018 2020 utilization (personal) Expansion opportunities in Third-party administrator (TPA) KY, IN, and the Mid-Atlantic services for small business WesMark Funds – six healthcare plans proprietary funds across equities, bonds, and tactical assets
Securities Brokerage Private Banking Securities investment sales $930MM in private banking loans and deposits Licensed banker program Priv ate Banking Loans and Deposits (as of 12/31) ($MM) Investment advisory services 3,250+ relationships $890 Regional player/coach program $770 Growth opportunities from $540 CAGR shale-related private wealth Expand external business $270 38% development opportunities $100 management Expansion opportunities in KY, 2013 2015 2017 2019 2020 Expansion opportunities in KY, IN, and Mid-Atlantic Loans Deposits IN, and Mid-Atlantic
7 Note: assets, loans, deposits, and clients as of 12/31/2020; chart financials as of 12/31 unless otherwise stated Digital Platforms Drive Engagement & Efficiency Digital banking utilization . ~72% of retail customers utilize online digital banking services . 4 million web and mobile logins per month • Mobile 50% of total, with an average of 17 monthly logins per customer . Mobile wallet & mobile deposits increased 70% & 55% YoY, respectively . Zelle® to be utilized as a payment service beginning 2H2021 Digital acquisition . ~47% of residential mortgage applications submitted via online portal . ~270 deposit accounts opened per month . WesBanco Insurance Services launched white-label insurance capabilities with a web-based term-life insurance platform, and a fully-integrated digital property & casualty insurance for consumers and small businesses Core upgrade in 2021 . Omni-channel presence – real-time account activity across all channels . Improved customer service through reduced manual activities . More efficient processing cost structure Cloud-based architecture utilization . Early adoption to leverage modernized data and application platforms, combined with significant expense and performance benefits . Actively harnessing advanced artificial intelligence (AI) and robotic process automation (RPA) technologies to automate business processes Note: digital statistics as of 4Q2020; online residential mortgage applications and deposit account opening capabilities launched J uly 2019; WesBanco Insurance Services online term-life and P&C 8 insurance capabilities launched November 2020 and January 2021, respectively Benefits of Core Deposit Funding Advantage
Robust legacy deposit base, enhanced by shale energy-related royalties, provides funding advantage in Mid-Atlantic market Reflecting the significantly lower interest rate environment, aggressively reduced deposit rates throughout 2020 During the last five years: . Total deposits (excluding CDs) have grown organically at a 9% CAGR . Total demand deposits have grown organically at a 13% CAGR to represent ~55% of total deposits Avg Deposits as of 12/31/2015 Avg Deposits as of 12/31/2019 Avg Deposits as of 12/31/2020
Non-int Non-int CDs CDs CDs Bearing Bearing Non-int 13% 26% 17% DD DD Bearing DD 33% 21% Total 29% DD 40% Savings 18% Total Total Savings DD Int DD 18% 55% Bearing 52% DD 19% Int Savings Int Money 18% Bearing Bearing Money Money Mkt DD DD Mkt Mkt 14% 23% 22% 16% 13% Funding Cost Funding Cost Funding Cost Interest-Bearing = 0.31% Interest-Bearing = 0.63% Interest-Bearing = 0.23% Total Deposits = 0.24% Total Deposits = 0.45% Total Deposits = 0.16% [Peer Average Total Deposit Cost = 0.26%] [Peer Average Total Deposit Cost = 0.73%] [Peer Average Total Deposit Cost = 0.26%] Note: text reflects period-end data and pie charts reflect quarterly averages; peer bank group includes all U.S. banks with total assets of $10B to $25B (as of most recent period) 9 from S&P Global Market Intelligence (as of 2/8/2021) and represent simple averages Franchise Expansion
Targeted acquisitions in existing Contiguous Markets Radius markets and new higher-growth metro areas
ESB & FSBI
AmTrust Long-term focus on appropriate branches
capital management to enhance OAKF shareholder value OLBK FFKT FTSB YCB Strong capital and liquidity, along with strong regulatory compliance processes, provides ability to execute transactions quickly Franchise-Enhancing Acquisitions Diligent efforts to maintain a OLBK: announced Jul-19; closed Nov-19 community bank-oriented, value- FFKT: announced Apr-18; closed Aug-18 based approach to our markets FTSB: announced Nov-17; closed Apr-18 YCB: announced May-16; closed Sep-16 ESB: announced Oct-14; closed Feb-15 History of successful acquisitions FSBI: announced Jul-12; closed Nov-12 that have improved earnings AmTrust: announced Jan-09; closed Mar-09 OAKF: announced Jul-07; closed Nov-07 10 Note: AmTrust was an acquisition of five branches Focus on Positive Operating Leverage
Disciplined growth, balanced by a fundamental focus on expense management and supported by franchise-enhancing acquisitions, in order to deliver positive operating leverage and enhance shareholder value Start of “Durbin Pandemic & Amendment” Fed Funds ESB YCB Assets Impact Begun Rate Cut to Merger Merger up 204% Fidelity (Jul-19) 0.0-0.25% (Feb-15) (Sep-16) Merger (Mar-20) Efficiency Ratio (Nov-12) down 775bp $10B Asset FTSB Merger OLBK Lending & Revenue Threshold (Apr-18) Merger Diversification Preparations FFKT Merger (Nov-19) Strategy Begun Begun (Aug-18)
$18.0 66.00%
$17.0 64.13%
$16.0 64.00%
$15.0
$14.0 60.81% 60.98% 60.99% 62.00% $13.0 59.50% 59.59% $12.0 60.00%
$11.0
57.05% 58.00% $10.0 56.69% 56.44% 56.68% 56.38% $9.0 $8.0 54.60% 56.00% $7.0
$6.0 54.00%
$5.0
$4.0 52.00%
$3.0
$2.0 50.00% $1.0 $5.4 $5.4 $5.5 $6.1 $6.1 $6.3 $8.5 $9.8 $9.8 $12.5 $15.7 $16.4 $0.0 48.00% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Operating Leverage 0.6x 9.6x 4.2x 0.7x 1.6x 10.9x 2.2x 1.9x 1.8x 2.5x 1.4x 1.8x Assets ($B) Efficiency Ratio (YTD)
Note: financial data as of 12/31; current year-to-date (YTD) data as of 12/31/2020; balance sheet data as of period ends; Efficiency Ratio presented on a fully taxable-equivalent (FTE) 11 and annualized basis; please see the reconciliations in the appendix Strong Risk Management and Capital Position Strong legacy of credit and risk management and regulatory compliance . Based upon conservative underwriting standards and approval processes supported by centralized back-office and loan funding functions Mature enterprise risk management program headed by Chief Risk Officer addressing key risks in all business lines and functional areas Enhanced compliance and risk management system and testing platform . Strong and scalable BSA/AML function . Examined by CFPB for consumer compliance supervision Seven consecutive “outstanding” CRA ratings since 2003 Strong and improving regulatory capital ratios significantly above regulatory requirements, and high tangible common equity (TCE) levels Tier 1 Risk-Based Capital Ratio Tier 1 Leverage Capital Ratio
10.47% 10.59% 10.21% 10.27% 13.04% 12.81% 12.90% 12.72% 12.66% memo 9.57% memo Well- Well- Capitalized Capitalized 8.0% 5.0% 13.16% 14.12% 15.09% 12.89% 14.72% Required 9.81% 10.39% 10.74% 11.30% 10.51% Required 6.0% 4.0% 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 WSBC $10-25B Banks WSBC $10-25B Banks Note: capital ratios enhanced by August 2020 issuance of $150MM of preferred stock; effective 4Q2019, as required by the Dodd - Frank Act for financial institutions with total assets >$15B, Tier 1 Capital Ratios negatively impacted by the movement of ~$130MM of TruPS from Tier 1 to Tier 2 risk-based capital; peer bank group includes all U.S. banks with total 12 assets of $10B to $25B (as of each period) from S&P Global Market Intelligence (as of 2/8/2021) and represent simple averages Recent Successes and Accolades
Named to Newsweek magazine's inaugural ranking of America's Best Banks, recognizing those banks that best serve their customers needs, as well as being named the Best Big Bank in the state of West Virginia
The Central Ohio market of WesBanco Bank was awarded a “Top Workplaces” honor by Columbus C.E.O. magazine for the fifth consecutive year
The Western Pennsylvania market of WesBanco Bank was awarded a “Top Workplaces” honor by The Pittsburgh Post Gazette for the third consecutive year WesBanco Bank received the America Saves Designation of Savings Excellence for Banks, a designation from America Saves
Bauer Financial again awarded WesBanco their highest rating as a “five-star” bank The FDIC awarded WesBanco Bank it’s 7th consecutive composite “Outstanding” rating for its most recent CRA performance
Based 100% on customer satisfaction and consumer feedback, WesBanco Bank was again named to the second-annual Forbes list of the World’s Best Banks
For the 11th time since the list’s inception in 2010, WesBanco Bank was named to the Forbes list of the Best Banks in America – coming in as the 12th best bank Kroll Bond Rating Agency assigned senior unsecured debt ratings of BBB+ to WesBanco, Inc. and A- to WesBanco Bank, Inc.
13 Note: Kroll Bond Rating Agency rating report issued 8/4/2020 Financial Overview Q4 2020 Financial and Operational Highlights WesBanco is well-capitalized with solid liquidity Pre-Tax, Pre-Provision Income(1) and a strong balance sheet $64.8 million, +14.2% YoY . Total risk-based capital ratio 17.57% Net Income Available to Common Strong growth in pre-tax, pre-provision income Shareholders and Diluted EPS(1) $50.6 million; $0.76/diluted share Positive growth in both loans and deposits Efficiency Ratio(1) Mortgage banking income increased due to a 57.06% high volume of originations Mortgage Banking Income Continued emphasis on expense management $5.4 million, +84.0% YoY . Financial center optimization strategy completed
Loan Growth Key credit quality metrics remained at low levels and favorable to peer bank averages +5.1% YoY
Trust assets under management totaled a record Deposit Growth (x-CDs) $5.0 billion +20.8% YoY
Note: financial and operational highlights during the quarter ended December 31, 2020; loan growth includes approximately $726.3 million of loans funded through the Small Business Administration’s Paycheck Protection Program (“SBA PPP”), as established by the CARES Act; Old Line Bancshares, Inc. (“OLBK”) financial results included in WSBC results since merger consummation date of 11/22/2019 15 (1) Non-GAAP measure – please see reconciliation in appendix Q4 2020 Total Portfolio Loans ($MM)
~6,850 SBA PPP loans from the first rounds totaling ~$726MM remaining (as of 12/31/2020) (recorded in C&I loan category) Comm'l Avg Comm'l Avg Payoff Yield New Yield 4.56% 3.36% Q4 residential real estate loan levels were impacted by Total Loan Growth = 5.1% retaining a smaller percentage
Comm'l Comm'l New SBA PPP All Other Net of the $351 million of Q4 Payoffs Originations Advances / (Paydow ns) mortgage origination dollar volume (~50% refi) on the balance sheet . Sales to the secondary market increased significantly to ~65% (vs. 40-50% historically)
Q4 consumer loans declined 17.6% YoY reflecting payoffs Total Loan Growth = (1.8%) (un-annualized) driven by utilization of residential
Comm'l Comm'l New All Other Net SBA PPP mortgage refinancing and higher Payoffs Originations Advances / (Paydow ns) personal savings
16 Q4 2020 Net Interest Margin (NIM)
Net Interest Margin & Components NIM negatively impacted by YoY 4.75% Total Loan Yield H/(L) the low interest rate Total Earning Assets Yield 4.25% 4.12% (63)bp environment and flattening of Net Interest Margin (64)bp 3.55% 3.61% 3.31% (24)bp the yield curve . The Federal Reserve Board’s target federal funds rate was reduced 225bp from July 0.99% Total Interest-Bearing Liabilities Cost 2019 through March 2020 Total Interest-Bearing Deposit Cost 0.63% (54)bp Purchase Accounting Accretion 0.45% 0.22% 0.23% (40)bp 0.16% (6)bp Aggressively reduced deposit 4Q2019 1Q2020 2Q2020 3Q2020 4Q2020 rates throughout 2020, which helped to lower deposit 4Q2020 Commercial Loan Portfolio Index Mix Variable Commercial Loan Repricing funding costs Variable Rate 48 to 60 Months >60 Months 66% 46% 3% Average FHLB borrowings of $0.5B, with remaining average Fixed life of less than one year, Rate 24 to 48 34% Months down $0.9B year-over-year 3% 3 to 24 <3 Months Months 45% 3% Funding of SBA PPP loans ~$2.3MM of the commercial portf olio has f loors, with ~69% of these currently at their f loors of 4.22% (av g) benefited NIM by a net 2bp
17 Note: OLBK financial results included in WSBC results since merger consummation date of 11/22/2019; commercial loan portfolio index mix excludes SBA PPP loans Q4 2020 Non-Interest Income
Quarter Ending % H / (L) % H / (L) Mortgage banking fees increased due to a 75% year-over-year ($000s) 12/31/20 12/31/19 09/30/20 increase in 1-to-4 family residential mortgage origination dollar volume, Trust fees $6,754 0.8% 5.1% and the associated sale of ~65% of those originations into the Service charges on deposits 5,671 (20.9%) 6.4% secondary market (40-50% historically)
Electronic banking fees 4,424 2.0% (7.4%) Service charges on deposits were Net securities brokerage revenue 1,402 0.6% (18.7%) lower year-over-year due to higher consumer deposits associated with Bank-owned life insurance 1,750 (7.0%) (16.2%) CARES Act stimulus and lower general consumer spending, Mortgage banking income 5,442 84.0% (35.9%) resulting in fewer eligible account fees Net securities gains 691 32.9% (12.2%)
Net (loss)/gain on OREO & other assets 18 (70.5%) (194.6%) Trust fees increased both year- over-year and sequentially due to Other income 6,553 12.6% 30.9% higher levels of assets under management due to both market Total non-interest income $32,705 6.1% (5.5%) appreciation and organic growth
18 Note: OREO = other real estate owned; OLBK financial results included in WSBC results since merger consummation date of 11/22 /2019 Q4 2020 Non-Interest Expense
Quarter Ending % H / (L) % H / (L) Total operating expenses remained well-controlled through company- ($000s) 12/31/20 12/31/19 09/30/20 wide efforts . Efficiency ratio improved 123bp year- Salaries and wages $39,140 5.8% 2.1% over-year to 57.06%
Employee benefits 10,608 7.2% 0.0% Total non-interest expense increased Net occupancy 6,771 9.9% (4.5%) year-over-year due to the additional staffing and financial center locations Equipment 6,810 22.3% 9.3% from the OLBK acquisition
Marketing 1,675 (18.6%) 6.2% . Salaries and wages also reflect mid- year annual salary increases
FDIC insurance 1,278 91.3% (34.4%) FDIC insurance expense reflects Amortization of intangible assets 3,327 14.1% (0.6%) higher assessment rate associated with our larger asset level; plus, the Other operating expenses 17,976 7.1% 4.5% recording of a $0.7MM assessment Sub-total non-interest expense $87,585 8.1% 1.4% credit in the prior year period
Restructuring & merger-related 484 (95.8%) (86.6%) Q4 restructuring charges from financial center optimization plan Total non-interest expense $88,069 (4.8%) (2.1%) totaled $0.3MM, and merger-related charges totaled $0.2MM 19 Note: OLBK financial results included in WSBC results since merger consummation date of 11/22/2019 Comparable Operating Metrics Disciplined execution upon growth strategies providing strong performance compared to all U.S. banks with total assets from $10B to 25B (note: 2020 comparability impacted by timing of the adoption of CECL accounting standard and economic assumptions used by each bank)
Return on Average Tangible Equity Return on Average Assets
17.8% 1.39% 1.34% 15.1% 14.0% 13.9% 1.07% 1.09% 1.34% 1.34% 14.9% 14.6% 11.5% 0.88% 1.08% 1.04% 0.77% 12.1% 11.5% 9.5%
12.7% 12.2% 16.2% 14.0% 8.9% 0.97% 0.96% 1.26% 1.24% 0.73%
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 WSBC (x- merger & DTA revalue costs) WSBC $10-25B Banks WSBC (x- merger & DTA revalue costs) WSBC $10-25B Banks
Efficiency Ratio Net Interest Margin
3.86% 3.79% 3.68% 3.71% 57.8% 57.2% 3.34% 56.1% 55.4% 53.7%
56.7% 56.4% 54.6% 56.7% 56.4% 3.32% 3.44% 3.52% 3.62% 3.37%
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 WSBC $10-25B Banks WSBC $10-25B Banks Note: financial data as of 12/31 YTD; current YTD data as of 12/31/2020; Current Expected Credit Losses (“CECL”) accounting standard adopted January 1, 2020 by WSBC; peer bank group includes all U.S. banks with total assets of $10B to $25B (as of each period) from S&P Global Market Intelligence (as of 2/8/2021) and represent simple averages (ROATE & ROAA are S&P calculations; Efficiency & NIM are company-reported); Efficiency & NIM presented on a fully taxable-equivalent (FTE) and annualized basis; please see 20 the reconciliations in the appendix Solid Legacy of Credit Quality Favorable asset quality measures compared to all U.S. banks with total assets from $10B to 25B (note: 2020 ACL comparability impacted by timing of the adoption of CECL accounting standard and economic assumptions used by each bank) Criticized & Classified Loans as % of Total Loans Non-Performing Assets as % of Total Assets 1.10%
3.91% 0.89% 3.30% 0.71% 3.16% 3.02% 2.98% 0.60% 0.61%
1.20% 1.17% 1.08% 2.17% 4.59% 0.49% 0.50% 0.35% 0.35% 0.25%
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 WSBC $10-25B Banks WSBC $10-25B Banks
Net Charge-Offs as % of Average Loans (annualized) Allowance for Credit Losses as % of Total Loans
0.24% 0.22% 1.51% 0.20% 0.20% 0.19% 1.01% 0.95% 0.87% 0.80%
0.70% 0.71% 0.64% 0.51% 1.72% 0.12% 0.13% 0.06% 0.09% 0.06% 2016 2017 2018 2019 2020 2016 YTD 2017 YTD 2018 YTD 2019 YTD 2020 YTD WSBC $10-25B Banks WSBC $10-25B Banks
Note: financial data as of quarter ending 12/31; current year data as of 12/31/2020; Current Expected Credit Losses (“CECL”) accounting standard adopted January 1, 2020 by WSBC; 21 peer bank group includes all U.S. banks with total assets of $10B to $25B (as of each period) from S&P Global Market Intelligence (as of 2/8/2021) and represent simple averages Returning Value to Shareholders
Focus on appropriate capital allocation to provide financial flexibility while continuing to enhance shareholder value through earnings growth and effective capital management
Capital management strategy: dividends, share repurchases, acquisitions . Q4 2020 dividend yield 4.1%, compared to 2.7% for bank group . Share repurchase program has a remaining authorization of 1.7 million shares
Quarterly Dividend per Share ($) Tangible Book Value per Share ($) $0.32 +129% +80% $21.75
$12.09 $0.14
4Q10 4Q20 4Q10 4Q20
Note: dividend through November 2020 declaration announcement; WSBC dividend payout ratio based on earnings per share excluding merger-related costs and including impact from adoption of the new Current Expected Credit Losses (“CECL”) accounting standard; WSBC dividend yield based upon 2/8/2020 closing stock price of $31.34; peer bank group 22 includes all U.S. banks with total assets of $10B to $25B (as of most recent period) from S&P Global Market Intelligence (as of 2/8/2020) and represent simple averages Appendix Q4 2020 Key Metrics
Quarter Ending H / (L) H / (L) Year-to-Date H / (L)
12/31/20 12/31/19 09/30/20 12/31/20 12/31/19
Return on Average Assets (1)(2) 1.22% (8bp) 17bp 0.77% (57bp)
PTPP Return on Average Assets (1)(2) 1.56% (6bp) (8bp) 1.60% (12bp)
Return on Average Tangible Equity (1)(2) 13.28% (96bp) 97bp 9.12% (598bp)
PTPP Return on Average Tangible Equity (1)(2) 17.00% (78bp) (200bp) 18.28% (111bp)
Tangible Book Value per Share ($) (1) $21.75 0.9% 1.7% $21.75 0.9%
Efficiency Ratio (1)(2) 57.06% (123bp) 183bp 56.38% (30bp)
Net Interest Margin 3.31% (24bp) 0bp 3.37% (25bp)
Non-Performing Assets to Total Assets 0.25% (10bp) (1bp) 0.25% (10bp)
Net Loan Charge-offs to Average Loans (annualized) 0.02% (18bp) 2bp 0.06% (3bp)
Note: PTPP = pre-tax, pre-provision; OLBK financial results included in WSBC results since merger consummation date of 11/22/2019 (1) Non-GAAP measure – please see reconciliation in appendix 24 (2) Excludes restructuring and merger-related expenses Q4 2020 Current Expected Credit Loss (CECL)
The increase in the allowance was related to the COVID-19 related adjustments and changes in prepayment assumptions and the loan portfolio partially offset by improvement in the macroeconomic forecast
Allowance coverage ratio of 1.72%, or, excluding SBA PPP loans, 1.85% . Excludes fair market value adjustments on previously acquired loans representing 0.37% of total portfolio loans
($000s)
Changes in prepayment speeds Qualitative Changes to adjustments for Changes in macroeconomic COVID-19 portfolio mix variables pandemic, regional macroeconomic Changes in Includes changes factors, and credit quality in both quantitative hospitality industry and qualitative classification loans Aging of existing economic factors portfolio
Economic Pandemic Portfolio Factors Qualitative Factors Changes / Other Note: ACL at 12/31/2020 excludes off-balance sheet credit exposures of $9.5 million; on January 1, 2020, WSBC adopted the CECL account ing standard (prior to this date, the 25 allowance for credit losses was calculated under the incurred method) Customer Support Efforts During the Pandemic
Pandemic-related loan deferral balances down ~90% from May 2020 peak . All retail deferrals targeted to run-off by 3/31/2021 . Non-hospitality commercial deferrals targeted to run-off by 4/30/2021 The hospitality portfolio has been fully reviewed, and associated loan deferrals are CARES Act qualified . Hospitality loan deferrals represent ~20% of total hospitality loans outstanding . Majority of hospitality deferrals could remain throughout 2021, however, if certain triggers are met, loans could come off deferral earlier . Average loan-to-value ~67% . The Economic Aid Act added second draw SBA PPP loans to provide additional assistance to borrowers who previously received a loan, including hotels which will be eligible for a forgivable loan up to three and one half times their average monthly payroll Deferrals ($MM) as of Pandemic-Related Loan Deferrals May peak 07/31/2020 10/16/2020 12/31/2020 Commercial - All Other $1,428 $550 $251 $4 Commercial - Hospitality $605 $512 $256 $150 Residential Mortgages $132 $31 $24 $16 HELOCs $16 $4 $2 $0 Consumer $10 $3 $2 $1 Total Deferrals $2,191 $1,100 $535 $171 as % of total loans incl. PPP 21.2% 9.9% 4.9% 1.6% (3/31, 6/30, 9/30, 12/31 respectively)
26 Note: deferral data reflects loan deferrals accepted and closed by customers for each time period; the majority of hospitalit y loan-to-values are pre-pandemic Reconciliation: Efficiency Ratio & Operating Leverage
Three Months Ending Twelve Months Ending
($000s) 12/31/19 09/30/20 12/31/20 12/31/09 12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20
Non-Interest Expense $92,556 $89,943 $88,069 $149,648 $141,152 $140,295 $150,120 $160,998 $161,633 $193,923 $208,680 $220,860 $265,224 $312,208 $354,845
Restructuring & Merger-Related ($11,522) ($3,608) ($484) ($1,815) ($175) $0 ($3,888) ($1,310) ($1,309) ($11,082) ($13,261) ($945) ($17,860) ($16,397) ($9,725) Expense
Non-Interest Expense (excluding restructuring & merger-related $81,034 $86,335 $87,585 $147,833 $140,977 $140,295 $146,232 $159,688 $160,324 $182,841 $195,419 $219,915 $247,364 $295,811 $345,120 expense)
Net Interest Income (FTE-basis) $108,177 $121,705 $120,790 $165,916 $172,235 $175,885 $175,027 $192,556 $200,545 $246,014 $263,232 $300,790 $352,760 $405,222 $483,999
Non-Interest Income $30,838 $34,612 $32,705 $64,589 $59,599 $59,888 $64,775 $69,285 $68,504 $74,466 $81,499 $88,840 $100,276 $116,716 $128,185
Total Income $139,015 $156,317 $153,495 $230,505 $231,834 $235,773 $239,802 $261,841 $269,049 $320,480 $344,731 $389,630 $453,036 $521,938 $612,184
Efficiency Ratio 58.29% 55.23% 57.06% 64.13% 60.81% 59.50% 60.98% 60.99% 59.59% 57.05% 56.69% 56.44% 54.60% 56.68% 56.38%
Net Interest Income (before provision $106,964 $120,593 $119,712 $158,372 $166,092 $169,365 $168,351 $185,487 $193,228 $236,987 $253,330 $290,295 $347,236 $399,904 $479,480 expense)(non-FTE)
Non-Interest Income $30,838 $34,612 $32,705 $64,589 $59,599 $59,888 $64,775 $69,285 $68,504 $74,466 $81,499 $88,840 $100,276 $116,716 $128,185
Total Revenue $137,802 $155,205 $152,417 $222,961 $225,691 $229,253 $233,126 $254,772 $261,732 $311,453 $334,829 $379,135 $447,512 $516,620 $607,665
YoY Change in Total Revenue $14,615 $5,078 $2,730 $3,562 $3,873 $21,646 $6,960 $49,721 $23,376 $44,306 $68,377 $69,108 $91,045
YoY Change in Non-Interest Expense (excluding restructuring & merger- $6,551 $9,154 ($6,856) ($682) $5,937 $13,456 $636 $22,517 $12,578 $24,496 $27,449 $48,447 $49,309 related expense)
Operating Leverage 2.2x 0.6x 9.6x 4.2x 0.7x 1.6x 10.9x 2.2x 1.9x 1.8x 2.5x 1.4x 1.8x
Note: “efficiency ratio” is non-interest expense excluding restructuring and merger-related expense divided by total income; FTE represents fully taxable equivalent; Old Line Bancshares merger closed November 2019; Farmers Capital Bank Corporation merger closed August 2018; First Sentry Bancshares merger close d April 2018; Your Community Bankshares merger27 closed September 2016; ESB Financial merger closed February 2015; Fidelity Bancorp merger closed November 2012; AmTrust 5 bra nch acquisition closed March 2009 Reconciliation: Pre-Tax, Pre-Provision Income (PTPP) and Ratios
Three Months Ending Twelve Months Ending
($000s) 12/31/19 09/30/20 12/31/20 12/31/19 12/31/20
Income before Provision for Income Taxes $43,422 $48,974 $64,557 $193,214 $145,079
Provision for Credit Losses 1,824 16,288 (209) 11,198 107,741
Pre-Tax, Pre-Provision Income ("PTPP") $45,246 $65,262 $64,348 $204,412 $252,820
Restructuring and Merger-Related Expense 11,522 3,608 484 16,397 9,725
PTPP (excluding restructuring and merger-related expense) $56,768 $68,870 $64,832 $220,809 $262,545
PTPP (excluding restructuring and merger-related expense) $56,768 $68,870 $64,832 $220,809 $262,545
Average Total Assets 13,919,430 16,719,717 16,546,761 12,853,920 16,422,704
PTPP Return on Average Assets 1.62% 1.64% 1.56% 1.72% 1.60%
PTPP (excluding restructuring and merger-related expense) $56,768 $68,870 $64,832 $220,809 $262,545
Amortization of Intangibles 2,916 3,346 3,327 10,340 13,411
PTPP before Amortization of Intangibles (excluding restructuring and merger-related expense) $59,684 $72,216 $68,159 $231,149 $275,956
Average Total Shareholders' Equity $2,329,121 $2,662,513 $2,744,936 $2,119,995 $2,651,402
Average Goodwill and Other Intangibles (net of deferred tax liability) (997,658) (1,150,549) (1,150,184) (927,974) (1,141,528)
Average Tangible Equity $1,331,463 $1,511,964 $1,594,752 $1,192,021 $1,509,874
PTPP Return on Average Tangible Equity 17.78% 19.00% 17.00% 19.39% 18.28%
28 Note: Old Line Bancshares merger closed November 2019 Reconciliation: Net Income, EPS & Tangible Book Value per Share
Three Months Ending Twelve Months Ending
($000s, except earnings per share) 12/31/10 12/31/19 09/30/20 12/31/20 12/31/19 12/31/20
Net Income Available to Common Shareholders n/a $36,376 $41,305 $50,210 $158,873 $119,400
Restructuring and Merger-Related Expense (net of tax) n/a 9,102 2,850 383 12,954 7,683
Net Income Available to Common Shareholders (excluding restructuring n/a $45,478 $44,155 $50,593 $171,827 $127,083 and merger-related expense)
Net Income Available to Common Shareholders per Diluted Share ($) n/a $0.60 $0.61 $0.75 $2.83 $1.77
Restructuring and Merger-Related Expense (net of tax) n/a 0.15 0.05 0.01 0.23 0.11
Net Income Available to Common Shareholders per Diluted Share ($) n/a $0.75 $0.66 $0.76 $3.06 $1.88 (excluding restructuring and merger-related expense)
Average Common Shares Outstanding – Diluted (000s) n/a 60,562 67,269 67,304 56,214 67,311
Total Shareholders's Equity (period-end) $606,863 $2,593,921 $2,732,966 $2,756,737 $2,593,921 $2,756,737
Goodwill & Other Intangible Assets (net of deferred tax liability)(period-end) (285,559) (1,132,262) (1,150,939) (1,149,161) (1,132,262) (1,149,161)
Preferred Shareholders' Equity 0 0 (144,529) (144,484) 0 (144,484)
Tangible Common Equity (period-end) $321,304 $1,461,659 $1,437,498 $1,463,092 $1,461,659 $1,463,092
Common Shares Outstanding (period-end) (000s) 26,587 67,824 67,216 67,255 67,824 67,255
Tangible Common Book Value per Share ($) $12.09 $21.55 $21.39 $21.75 $21.55 $21.75
29 Note: Current Expected Credit Losses (“CECL”) accounting standard adopted January 1, 2020 by WSBC; Old Line Bancshares merger closed November 2019 Reconciliation: Return on Average Assets
Three Months Ending Twelve Months Ending
($000s) 12/31/19 12/31/20 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20
Net Income Available to Common $36,376 $50,210 $86,635 $94,482 $143,112 $158,873 $119,400 Shareholders
Restructuring and Merger-Related $9,102 $383 $8,619 $614 $14,109 $12,954 $7,683 Expenses (net of tax)
Net Income Available to Common Shareholders (excluding restructuring $45,478 $50,593 $95,254 $107,876 $157,221 $171,827 $127,083 & merger-related expense)
Average Assets $13,919,430 $16,546,761 $8,939,886 $9,854,312 $11,337,379 $12,853,920 $16,442,704
Return on Average Assets 1.04% 1.21% 0.97% 0.96% 1.26% 1.24% 0.73%
Return on Average Assets (excluding 1.30% 1.22% 1.07% 1.09% 1.39% 1.34% 0.77% restructuring & merger-related expense)
Note: Current Expected Credit Losses (“CECL”) accounting standard adopted January 1, 2020 by WSBC; Old Line Bancshares merger closed November 2019; Farmers Capital 30 Bank Corporation merger closed August 2018; First Sentry Bancshares merger closed April 2018; Your Community Bankshares merge r closed September 2016 Reconciliation: Return on Average Tangible Equity
Three Months Ending Twelve Months Ending
($000s) 12/31/19 12/31/20 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20
Net Income Available to Common Shareholders $36,376 $50,210 $86,635 $94,482 $143,112 $158,873 $119,400
Amortization of Intangibles (1) $2,304 $2,628 $2,339 $3,211 $5,514 $8,169 $10,595
Net Income Available to Common Shareholders $38,680 $52,838 $88,974 $97,693 $148,626 $167,042 $129,995 before Amortization of Intangibles
Restructuring and Merger-Related Expenses (net of tax) $9,102 $383 $8,619 $614 $14,109 $12,954 $7,683
Net Income Available to Common Shareholders before Amortization of Intangibles and $47,782 $53,221 $97,593 $111,087 $162,735 $179,996 $137,678 Restructuring & Merger-Related Expenses
Average Total Shareholders Equity $2,329,121 $2,744,936 $1,215,888 $1,383,935 $1,648,425 $2,119,995 $2,651,402
Average Goodwill & Other Intangibles, Net of Deferred ($997,658) ($1,150,184) ($516,840) ($584,885) ($732,978) ($927,974) ($1,141,528) Tax Liabilities
Average Tangible Equity $1,331,463 $1,594,752 $699,048 $799,050 $915,447 $1,192,021 $1,509,874
Return on Average Tangible Equity 11.53% 13.18% 12.73% 12.23% 16.24% 14.01% 8.61%
Return on Average Tangible Equity Excluding 14.24% 13.28% 13.96% 13.90% 17.78% 15.10% 9.12% Restructuring & Merger-Related Expenses
(1) amortization of intangibles tax effected at 21% for 2018 forward, and 35% for all prior periods Note: Current Expected Credit Losses (“CECL”) accounting standard adopted January 1, 2020 by WSBC; Old Line Bancshares merger closed November 2019; Farmers Capital 31 Bank Corporation merger closed August 2018; First Sentry Bancshares merger closed April 2018; Your Community Bankshares merge r closed September 2016