NASDAQ$WSBC

Wesbanco Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Net income increased due to strong fee income growth and disciplined expense management.

WesBanco reported a net income of $41.3 million, or $0.61 per diluted share, for the third quarter of 2020, compared to $37.3 million, or $0.68 per diluted share, for the third quarter of 2019. Pre-tax, pre-provision income, excluding merger-related expenses, increased 33.8% year-over-year.

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

Headline financials

Total Revenue

$155M

Previous: $123M+26.1%
EPS (adj)

$0.66

Previous: $0.71-7.0%
Efficiency ratio

55.2%

No prior period
Tier 1 risk-based capital

14.3%

No prior period
Total risk-based capital

17.2%

No prior period
CET1 capital ratio

13.0%

No prior period
Net interest margin

3.3%

No prior period
Capital Expenditures

-$5.96M

Previous: -$8.34M+28.6%
Free Cash Flow

$35.3M

Previous: $29M+21.9%
Net Income

$41.3M

Previous: $37.3M+10.6%
Operating Income

$119M

Previous: $89.9M+32.2%
Gross Profit

$139M

Previous: $119M+16.8%
Cash & Equivalents

$760M

Previous: $244M+211.2%
Total Assets

$16.6B

Previous: $12.6B+31.4%

Revenue & EPS history

WesBanco · Revenue · Quarterly

$155M

Q3 2020+26.1%vs Q3 2019
Beat estimate in 5 of 16 quarters(31%)
ActualEstimate

Revenue by segment

WesBanco · $34.6M total across 8 segments · Q3 2020

  • Mortgage banking
    $8.49M+228.0%
  • Trust fees
    $6.43M
  • Deposit service charges
    $5.33M
  • Other income
    $5.01M
  • Digital banking income
    $4.78M
  • BOLI income
    $2.09M
  • Brokerage revenue
    $1.73M
  • Securities gains
    $787K

Forward guidance

WesBanco announced a plan to accelerate its financial center optimization strategy. Through this plan, WesBanco will consolidate a total of 25 existing locations and convert two others to drive-up only locations across Indiana, Kentucky, Ohio, Pennsylvania, and West Virginia.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

+0.2%

Avg return

Earnings day

-0.9%

Avg return

5 days after

+1.1%

Avg return

30 days after

49%

32 / 65 earnings

Positive

+7.3%

Q1 2020

Best reaction

-8.4%

Q3 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.3%-3.2%-3.3%
Q4 2025-2.6%+2.2%-1.0%
Q3 2025-2.1%-2.1%+0.2%
Q1 2025-0.4%+1.6%+2.9%
Q4 2024+5.3%+10.4%+11.6%
Q3 2024-1.6%+1.5%+18.1%
Q2 2024-6.2%-7.0%-5.3%
Q1 2024-0.9%-3.6%-3.4%
Q4 2023+1.4%+0.6%-5.5%
Q3 2023+2.7%+3.2%+14.0%
Q2 2023+2.5%-0.8%-10.8%
Q1 2023-6.1%-7.4%-15.3%
Q4 2022-0.0%-0.5%+2.5%
Q3 2022+3.6%+6.0%+5.6%
Q2 2022+2.0%+3.6%+6.3%
Q1 2022-2.1%-3.8%-0.2%
Q4 2021-3.3%-2.6%-5.6%
Q3 2021-8.4%-7.7%-5.9%
Q2 2021+1.3%-0.0%+4.5%
Q1 2021-1.7%-2.8%+4.1%
Q4 2020-7.5%-8.1%+3.0%
Q3 2020+5.8%+5.1%+20.5%
Q2 2020+0.9%-2.9%+4.1%
Q1 2020+7.3%+3.0%+0.8%
Q4 2019-1.9%-6.6%-9.4%
Q3 2019-6.4%-3.9%-6.0%
Q2 2019-4.5%-1.2%-6.8%
Q1 2019-0.7%-3.1%-6.6%
Q4 2018+4.7%+2.2%+6.4%
Q3 2018-2.4%-1.6%+4.4%
Q2 2018+2.3%+2.0%+6.6%
Q1 2018-0.6%-1.0%+7.6%
Q4 2017-0.2%-0.9%+0.1%
Q3 2017-0.4%-3.6%-3.7%
Q2 2017-1.8%-4.4%-10.1%
Q1 2017+3.6%+6.4%+1.9%
Q4 2016+4.2%+1.7%+0.1%
Q3 2016-4.5%-2.1%+18.9%
Q2 2016-1.7%-2.2%-0.7%
Q1 2016+0.9%
Q4 2015+3.1%
Q3 2015-1.6%
Q2 2015-0.7%
Q1 2015-0.8%
Q4 2014-4.4%
Q3 2014+0.7%
Q2 2014+2.6%
Q1 2014+3.1%
Q4 2013-1.8%
Q3 2013-1.2%
Q2 2013+1.1%
Q1 2013+3.9%
Q4 2011+1.4%
Q4 2009+1.4%
Q4 2010+1.4%
Q4 2012+0.2%
Q3 2012+4.2%
Q2 2012-0.5%
Q1 2011+1.1%
Q1 2012+3.0%
Q3 2010+4.3%
Q3 2011+4.3%
Q2 2010+4.8%
Q2 2011+4.8%
Q1 2010-0.9%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro