EX-99.1 2 wsbc-ex991_6.htm EX-99.1 EARNINGS RELEASE

WesBanco Announces Fourth Quarter 2020 Financial Results

Wheeling, WV, January 26, 2021 – 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 twelve months ended December 31, 2020. Net income available to common shareholders for the three months ended December 31, 2020 was $50.2 million, with diluted earnings per share of $0.75, compared to $36.4 million and $0.60 per diluted share, respectively, for the fourth quarter of 2019. For the twelve months ended December 31, 2020, reflecting the impact from the 2020 adoption of the new Current Expected Credit Losses (“CECL”) accounting standard, net income available to common shareholders was $119.4 million, or $1.77 per diluted share, compared to $158.9 million, or $2.83 per diluted share, for the 2019 period. Net income available to common shareholders excluding after-tax restructuring and merger-related expenses for the three months ended December 31, 2020, was $50.6 million, or $0.76 per diluted share, as compared to $45.5 million and $0.75 per diluted share, respectively, in the prior year quarter (non-GAAP measures). On the same basis, net income available to common shareholders for the twelve months ended December 31, 2020 was $127.1 million, or $1.88 per diluted share, as compared to $171.8 million, or $3.06 per diluted share, in the prior year period (non-GAAP measures).

|  | For the Three Months Ended December 31, |  |  | For the Twelve Months Ended December 31, |
|  | 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 available to common shareholders (Non-GAAP)(1) | $ | 50,593 |  |  | $ | 0.76 |  |  | $ | 45,478 |  |  | $ | 0.75 |  |  | $ | 127,083 |  |  | $ | 1.88 |  |  | $ | 171,827 |  |  | $ | 3.06 |
Less: After tax restructuring and merger-related expenses (2) |  | (383 | ) |  |  | (0.01 | ) |  |  | (9,102 | ) |  |  | (0.15 | ) |  |  | (7,683 | ) |  |  | (0.11 | ) |  |  | (12,954 | ) |  |  | (0.23 | )
Net income available to common shareholders (GAAP) | $ | 50,210 |  |  | $ | 0.75 |  |  | $ | 36,376 |  |  | $ | 0.60 |  |  | $ | 119,400 |  |  | $ | 1.77 |  |  | $ | 158,873 |  |  | $ | 2.83 |

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

(2) | For 2020, after tax merger-related expenses totaled $5.1 million, and after tax restructuring expenses from financial center optimization totaled $2.6 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 December 31, 2020, pre-tax, pre-provision income, excluding restructuring and merger-related expenses, increased 14.2% year-over-year to $64.8 million compared to $56.8 million for the prior period. On the same basis, pre-tax, pre-provision income, for the twelve months ended December 31, 2020, increased 18.9% year-over-year to $262.5 million compared to $220.8 million last year. In addition, on the same basis, the return on average assets was 1.56% for the three month and 1.60% for the twelve month periods ending December 31, 2020. 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 December 31, 2020:

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

| • | Strong year-over-year growth in pre-tax, pre-provision income (non-GAAP measure) for both the quarter and annual periods

| • | Total loan growth was 5.1% year-over-year, driven by WesBanco’s support of small businesses impacted by the pandemic

| o | Total loan growth includes nearly 6,850 loans remaining from the first rounds of the Small Business Administration’s Payroll Protection Program (“SBA PPP”) totaling approximately $726.3 million

| o | Commercial & industrial loan growth was 2.2% year-over-year, excluding SBA PPP loans

| • | Deposit growth, excluding certificates of deposit, was 20.8% year-over-year, driven by growth in demand deposits

| • | Trust assets under management totaled a record $5.0 billion, driven by both market appreciation and organic growth

| • | Continued expense management demonstrated by a year-to-date efficiency ratio of 56.38% (non-GAAP measure)

| • | 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 (based upon the four quarters prior to the current earnings period)

| • | Subsequent to year-end, on January 22, 2021, WesBanco Bank completed its financial center optimization strategy announced during August 2020 through the consolidation of 21 financial centers into nearby locations and the conversion of one location to drive-up only

Todd F. Clossin, President and Chief Executive Officer of WesBanco, commented, “2020 was a successful year for WesBanco, as measured by the more than ten thousand individuals, families, b usinesses, and non-profit s we assisted as they navigated through the pandemic. I am extremely proud of how our employees have responded this past year, from keeping our financial centers open throughout, working around the cl ock closing PPP loans to our commercial customers, and providing charitable donations to support those in need. These actions speak loudly to our community bank roots.”

Mr. Clossin added, “Solid execution on our well-defined, long-term strategies allowed us to generate record annual pre-tax, pre-provision earnings of $263 million, when excluding restructuring and merger-related costs, during 2020. In addition, we remained a well-capitalized financial institution, completed a preferred stock offering during August 2020 that was over-subscribed, and increased our allowance for credit losses. Through our diversified growth engines supported by our strong teams and a continued focus on operating costs, we believe we are well-positioned for long-term success, and remain positive about our opportunities for the upcoming year.”

Financial Center Optimization Strategy

Reflecting the current operating environment and increased utilization of digital services, WesBanco previously announced a plan to accelerate its financial center optimization strategy across Indiana, Kentucky, Ohio, Pennsylvania, and West Virginia. On October 30, two centers were consolidated and another converted to drive-up only. Recently, on January 22, 2021, 21 additional centers were consolidated into nearby locations and another converted to drive-up only. The anticipated cost savings of approximately $6.0 to $6.5 million, approximately half of which will be utilized for growth and digital infrastructure initiatives, remain on plan to be phased-in during the first half of 2021.

Balance Sheet

Portfolio loans of $10.8 billion as of December 31, 2020 increased 5.1% when compared to the prior year period due primarily to participation in the SBA PPP. During the fourth quarter, approximately 486 customers applied for and received forgiveness of their SBA PPP loans totaling $113.0 million.

Total deposits increased 13.0% year-over-year to $12.4 billion due primarily to CARES Act stimulus funds received and increased personal savings, which more than offset a $0.4 million reduction in certificates of deposit. Deposits, excluding CDs, increased 20.8% year-over-year, driven by a 25.8% increase in total demand deposits, which represent approximately 56% of total deposits.

Credit Quality

As of December 31, 2020, total loans past due, non-performing loans, and non-performing assets as percentages of the portfolio and total assets have remained relatively low and consistent throughout the last five quarters. In addition, annualized net loan charge-offs to average loans remained low for the quarter and year-to-date periods at two and six basis points, respectively. Pandemic-related loan deferrals, under the CARES Act, have declined to $171.1 million, or 1.6% of total loans, as of December 31, with approximately $150 million of this total related to the hospitality industry.

Reflecting improved macroeconomic factors in the CECL calculation, the allowance for credit losses specific to total portfolio loans at December 31, 2020 was $185.8 million, or 1.72% of total loans; or, when excluding SBA PPP loans, 1.85% of total portfolio loans. Excluded from the allowance for credit losses and related coverage ratio are fair market value adjustments on previously acquired loans representing 0.37% of total loans. The provision for credit losses was a negative $0.2 million for the quarter ended December 31, 2020.

Criticized and classified loan balances increased to 4.59% of total portfolio loans due to the fourth quarter net downgrades of $133.3 million of hospitality loans as a result of reduced occupancy and debt service coverage from the current pandemic-driven environment. These downgraded loans may have received current or prior CARES Act qualifying loan deferrals, and had an average loan-to-value of approximately 60%, the majority of which are pre-pandemic, as well as strong guarantor support. The Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (“Economic Aid Act”), which became law on December 27, 2020, added a new Second Draw PPP loan program that provides additional assistance to borrowers who previously received a SBA PPP loan. Included in this new authorization, hotels may be eligible for a forgivable loan up to three and one half times their average monthly payroll.

Net Interest Margin and Income

The net interest margin of 3.31% for the fourth quarter of 2020 was consistent with the third quarter’s 3.31% but, decreased 24 basis points year-over-year, primarily due to the lower interest rate environment from the five decreases in the Federal Reserve Board’s target federal funds rate, totaling 225 basis points, from July 2019 through March 2020, as well as a flattening of the yield curve. Reflecting the significantly lower interest rate environment, we aggressively reduced our deposit rates throughout the year, which helped to lower deposit funding costs 40 basis points year-over-year to 23 basis points for the fourth quarter of 2020. Further, we lowered the cost of borrowings 29 basis points year-over-year as we reduced fourth quarter average FHLB borrowings by $0.5 billion, or 41.8%, year-over-year to $0.7 billion, which have a remaining average life of less than one year. Accretion from acquisitions benefited the fourth quarter net interest margin by 16 basis points, as compared to 22 basis points in the prior year period and 18 basis points during the third quarter of 2020. Lastly, the funding of SBA PPP loans benefited the fourth quarter of 2020 net interest margin by a net two basis points, and will positively impact the net interest margin as the loans are forgiven during the next couple of quarters.

Net interest income increased $12.7 million, or 11.9%, during the fourth quarter of 2020, as compared to the same quarter of 2019, reflecting a 19.8% increase in average total earning assets driven by the OLBK acquisition, partially offset by the lower loan yields due to repricing of existing loans and lower new offered rates in the current market environment, and lower related accretion from purchase accounting. For the twelve months ended December 31, 2020, net interest income increased $79.6 million, or 19.9%, despite an overall lower net interest margin, due to higher average total earning assets as discussed for the three-month period comparison, primarily from the OLBK acquisition.

Non-Interest Income

For the fourth quarter of 2020, non-interest income of $32.7 million increased $1.9 million, or 6.1%, from the fourth quarter of 2019, driven primarily by mortgage banking income, which was partially offset by lower service charges on deposits. Reflecting the low interest rate environment and organic growth, mortgage banking fees increased $2.5 million, or 84.0%, compared to the prior year period, as residential mortgage origination dollar volume increased approximately 75% year-over-year, with roughly 65% of those originations sold into the secondary market. Service charges on deposits were lower due to higher consumer deposits associated with CARES Act stimulus and lower general consumer spending, resulting in fewer eligible account fees.

Non-interest income, for the twelve months ended December 31, 2020, increased $11.5 million, or 9.8%, to $128.2 million due primarily to the items discussed above, as well as higher commercial customer loan swap-related income and lower electronic banking fees due to the limitation on interchange fees for debit card processing. Loan swap-related income for the year was $6.1 million, an increase of $2.7 million year-over-year, reflecting commercial loan customer demand in the current rate environment. The limitation on interchange fees, due to the Durbin amendment in the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank Act”), which took effect for WesBanco during the third quarter of 2019, negatively impacted fee income by approximately $5.4 million as compared to the prior year.

Non-Interest Expense

Total operating expenses continued to be well-controlled through company-wide efforts to effectively manage discretionary costs, employee headcount, and marketing expenses. Despite an approximate 25% increase in size due to the OLBK acquisition, as well as the significantly lower interest rate environment, these strong efforts are demonstrated by efficiency ratios of 57.06% and 56.38% for the three-month and twelve-month periods ending December 31, 2020, respectively. Excluding restructuring and merger-related expenses, non-interest expense for the three months ended December 31, 2020 increased $6.6 million, or 8.1%, to $87.6 million compared to the prior year period, primarily due to additional staffing and financial center locations from the OLBK acquisition and the mid-year annual salary increases, partially offset by discretionary cost controls resulting from the pandemic and planned cost savings from the OLBK merger.

On a similar basis, non-interest expense during the twelve months of 2020 increased $49.3 million, or 16.7%, compared to the prior year period, primarily due to the reasons as discussed for the three-month period. In addition, FDIC insurance expense increased $5.8 million, or 295.4%, due to a higher assessment rate associated with our larger asset level, as well as the recording of a $3.1 million assessment credit in the prior year period.

Capital

WesBanco continues to maintain what we believe are strong regulatory capital ratios, enhanced by a $150 million preferred stock capital raise during August 2020, as both consolidated and bank-level regulatory capital ratios are well above the applicable “well-capitalized” standards promulgated by bank regulators and the BASEL III capital standards. At December 31, 2020, Tier I leverage was 10.51%, Tier I risk-based capital ratio was 14.72%, common equity Tier 1 capital ratio (“CET 1”) was 13.40%, and total risk-based capital was 17.57%.

Conference Call and Webcast

WesBanco will host a conference call to discuss the Company's financial results for the fourth quarter of 2020 at 10:00 a.m. ET on Wednesday, January 27, 2021. Interested parties can access the live webcast of the conference call through the Investor Relations section of the Company's website, www.wesbanco.com. Participants can also listen to the conference call by dialing 888-347-6607, 855-669-9657 for Canadian callers, or 412-902-4290 for international callers, and asking to be joined into the WesBanco call.

A replay of the conference call will be available by dialing 877-344-7529, 855-669-9658 for Canadian callers, or 412-317-0088 for international callers, and providing the access code of 10150966. The replay will begin at approximately 12:00 p.m. ET on January 27, and end at 12 a.m. ET on February 10. An archive of the webcast will be available for one year on the Investor Relations section of the Company’s website (www.wesbanco.com).

Forward-Looking Statements

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.

Non-GAAP Financial Measures

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.

About WesBanco, Inc.

Founded in 1870, WesBanco, Inc. (www.wesbanco.com) is a diversified and balanced financial services company that delivers large bank capabilities with a community bank feel. Our distinct long-term growth strategies are built upon unique sustainable advantages permitting us to span six states with meaningful market share. Built upon our ‘Better Banking Pledge’, our customer-centric service culture is focused on growing long-term relationships by pledging to serve all personal and business customer needs efficiently and effectively. In addition to a full range of online and mobile banking options and a full-suite of commercial products and services, WesBanco provides trust, wealth management, securities brokerage, and private banking services through our century-old Trust and Investment Services department, with approximately $5.0 billion of assets under management (as of December 31, 2020). WesBanco's banking subsidiary, WesBanco Bank, Inc., operates 212 financial centers in the states of Indiana, Kentucky, Maryland, Ohio, Pennsylvania, and West Virginia. Additionally, WesBanco operates an insurance agency, WesBanco Insurance Services, Inc., and a full service broker/dealer, WesBanco Securities, Inc.

SOURCE: WesBanco, Inc.

WesBanco Company Contact:

John H. Iannone

Senior Vice President, Investor and Public Relations

304-905-7021

WESBANCO, INC.
Consolidated Selected Financial Highlights
(unaudited, dollars in thousands, except shares and per share amounts)

|  | For the Three Months Ended |  |  | For the Twelve Months Ended |
STATEMENT OF INCOME |  | December 31, |  |  | December 31, |
|  | 2020 |  |  | 2019 |  |  | % Change |  |  | 2020 |  |  | 2019 |  |  | % Change |
Interest and dividend income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans, including fees |  | $ | 114,582 |  |  | $ | 105,879 |  |  |  | 8.2 |  |  | $ | 465,677 |  |  | $ | 393,166 |  |  |  | 18.4 |
Interest and dividends on securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Taxable |  |  | 10,892 |  |  |  | 16,586 |  |  |  | (34.3 | ) |  |  | 53,594 |  |  |  | 65,648 |  |  |  | (18.4 | )
Tax-exempt |  |  | 4,059 |  |  |  | 4,563 |  |  |  | (11.0 | ) |  |  | 16,999 |  |  |  | 20,006 |  |  |  | (15.0 | )
Total interest and dividends on securities |  |  | 14,951 |  |  |  | 21,149 |  |  |  | (29.3 | ) |  |  | 70,593 |  |  |  | 85,654 |  |  |  | (17.6 | )
Other interest income |  |  | 945 |  |  |  | 1,281 |  |  |  | (26.2 | ) |  |  | 5,007 |  |  |  | 5,433 |  |  |  | (7.8 | )
Total interest and dividend income |  |  | 130,478 |  |  |  | 128,309 |  |  |  | 1.7 |  |  |  | 541,277 |  |  |  | 484,253 |  |  |  | 11.8 |
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest bearing demand deposits |  |  | 1,099 |  |  |  | 4,054 |  |  |  | (72.9 | ) |  |  | 7,069 |  |  |  | 16,805 |  |  |  | (57.9 | )
Money market deposits |  |  | 678 |  |  |  | 2,143 |  |  |  | (68.4 | ) |  |  | 4,616 |  |  |  | 8,024 |  |  |  | (42.5 | )
Savings deposits |  |  | 280 |  |  |  | 935 |  |  |  | (70.1 | ) |  |  | 1,802 |  |  |  | 2,995 |  |  |  | (39.8 | )
Certificates of deposit |  |  | 2,797 |  |  |  | 3,800 |  |  |  | (26.4 | ) |  |  | 13,562 |  |  |  | 15,631 |  |  |  | (13.2 | )
Total interest expense on deposits |  |  | 4,854 |  |  |  | 10,932 |  |  |  | (55.6 | ) |  |  | 27,049 |  |  |  | 43,455 |  |  |  | (37.8 | )
Federal Home Loan Bank borrowings |  |  | 3,719 |  |  |  | 7,279 |  |  |  | (48.9 | ) |  |  | 24,701 |  |  |  | 26,548 |  |  |  | (7.0 | )
Other short-term borrowings |  |  | 275 |  |  |  | 1,009 |  |  |  | (72.7 | ) |  |  | 1,729 |  |  |  | 5,401 |  |  |  | (68.0 | )
Subordinated debt and junior subordinated debt |  |  | 1,918 |  |  |  | 2,125 |  |  |  | (9.7 | ) |  |  | 8,318 |  |  |  | 8,945 |  |  |  | (7.0 | )
Total interest expense |  |  | 10,766 |  |  |  | 21,345 |  |  |  | (49.6 | ) |  |  | 61,797 |  |  |  | 84,349 |  |  |  | (26.7 | )
Net interest income |  |  | 119,712 |  |  |  | 106,964 |  |  |  | 11.9 |  |  |  | 479,480 |  |  |  | 399,904 |  |  |  | 19.9 |
Provision for credit losses |  |  | (209 | ) |  |  | 1,824 |  |  | NM |  |  |  | 107,741 |  |  |  | 11,198 |  |  | NM |
Net interest income after provision for credit losses |  |  | 119,921 |  |  |  | 105,140 |  |  |  | 14.1 |  |  |  | 371,739 |  |  |  | 388,706 |  |  |  | (4.4 | )
Non-interest income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trust fees |  |  | 6,754 |  |  |  | 6,699 |  |  |  | 0.8 |  |  |  | 26,335 |  |  |  | 26,579 |  |  |  | (0.9 | )
Service charges on deposits |  |  | 5,671 |  |  |  | 7,171 |  |  |  | (20.9 | ) |  |  | 21,943 |  |  |  | 26,974 |  |  |  | (18.7 | )
Electronic banking fees |  |  | 4,424 |  |  |  | 4,336 |  |  |  | 2.0 |  |  |  | 17,524 |  |  |  | 22,634 |  |  |  | (22.6 | )
Net securities brokerage revenue |  |  | 1,402 |  |  |  | 1,393 |  |  |  | 0.6 |  |  |  | 6,189 |  |  |  | 6,990 |  |  |  | (11.5 | )
Bank-owned life insurance |  |  | 1,750 |  |  |  | 1,882 |  |  |  | (7.0 | ) |  |  | 7,359 |  |  |  | 5,913 |  |  |  | 24.5 |
Mortgage banking income |  |  | 5,442 |  |  |  | 2,957 |  |  |  | 84.0 |  |  |  | 22,736 |  |  |  | 8,219 |  |  |  | 176.6 |
Net securities gains |  |  | 691 |  |  |  | 520 |  |  |  | 32.9 |  |  |  | 4,268 |  |  |  | 4,320 |  |  |  | (1.2 | )
Net gain on other real estate owned and other assets |  |  | 18 |  |  |  | 61 |  |  |  | (70.5 | ) |  |  | 103 |  |  |  | 732 |  |  |  | (85.9 | )
Other income |  |  | 6,553 |  |  |  | 5,819 |  |  |  | 12.6 |  |  |  | 21,728 |  |  |  | 14,355 |  |  |  | 51.4 |
Total non-interest income |  |  | 32,705 |  |  |  | 30,838 |  |  |  | 6.1 |  |  |  | 128,185 |  |  |  | 116,716 |  |  |  | 9.8 |
Non-interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Salaries and wages |  |  | 39,140 |  |  |  | 36,984 |  |  |  | 5.8 |  |  |  | 153,166 |  |  |  | 132,485 |  |  |  | 15.6 |
Employee benefits |  |  | 10,608 |  |  |  | 9,894 |  |  |  | 7.2 |  |  |  | 41,723 |  |  |  | 39,313 |  |  |  | 6.1 |
Net occupancy |  |  | 6,771 |  |  |  | 6,162 |  |  |  | 9.9 |  |  |  | 27,580 |  |  |  | 22,505 |  |  |  | 22.6 |
Equipment |  |  | 6,810 |  |  |  | 5,570 |  |  |  | 22.3 |  |  |  | 24,801 |  |  |  | 20,494 |  |  |  | 21.0 |
Marketing |  |  | 1,675 |  |  |  | 2,059 |  |  |  | (18.6 | ) |  |  | 5,957 |  |  |  | 6,062 |  |  |  | (1.7 | )
FDIC insurance |  |  | 1,278 |  |  |  | 668 |  |  |  | 91.3 |  |  |  | 7,734 |  |  |  | 1,956 |  |  |  | 295.4 |
Amortization of intangible assets |  |  | 3,327 |  |  |  | 2,916 |  |  |  | 14.1 |  |  |  | 13,411 |  |  |  | 10,340 |  |  |  | 29.7 |
Restructuring and merger-related expense |  |  | 484 |  |  |  | 11,522 |  |  |  | (95.8 | ) |  |  | 9,725 |  |  |  | 16,397 |  |  |  | (40.7 | )
Other operating expenses |  |  | 17,976 |  |  |  | 16,781 |  |  |  | 7.1 |  |  |  | 70,748 |  |  |  | 62,656 |  |  |  | 12.9 |
Total non-interest expense |  |  | 88,069 |  |  |  | 92,556 |  |  |  | (4.8 | ) |  |  | 354,845 |  |  |  | 312,208 |  |  |  | 13.7 |
Income before provision for income taxes |  |  | 64,557 |  |  |  | 43,422 |  |  |  | 48.7 |  |  |  | 145,079 |  |  |  | 193,214 |  |  |  | (24.9 | )
Provision for income taxes |  |  | 11,703 |  |  |  | 7,046 |  |  |  | 66.1 |  |  |  | 23,035 |  |  |  | 34,341 |  |  |  | (32.9 | )
Net Income |  |  | 52,854 |  |  |  | 36,376 |  |  |  | 45.3 |  |  |  | 122,044 |  |  |  | 158,873 |  |  |  | (23.2 | )
Preferred stock dividends |  |  | 2,644 |  |  |  | - |  |  |  | 100.0 |  |  |  | 2,644 |  |  |  | - |  |  |  | 100.0 |
Net income available to common shareholders |  | $ | 50,210 |  |  | $ | 36,376 |  |  |  | 38.0 |  |  | $ | 119,400 |  |  | $ | 158,873 |  |  |  | (24.8 | )
Taxable equivalent net interest income |  | $ | 120,790 |  |  | $ | 108,177 |  |  |  | 11.7 |  |  | $ | 483,999 |  |  | $ | 405,222 |  |  |  | 19.4 |
Per common share data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income per common share - basic |  | $ | 0.75 |  |  | $ | 0.60 |  |  |  | 25.0 |  |  | $ | 1.78 |  |  | $ | 2.83 |  |  |  | (37.1 | )
Net income per common share - diluted |  |  | 0.75 |  |  |  | 0.60 |  |  |  | 25.0 |  |  |  | 1.77 |  |  |  | 2.83 |  |  |  | (37.5 | )
Net income per common share - diluted, excluding certain items (1)(2) |  |  | 0.76 |  |  |  | 0.75 |  |  |  | 1.3 |  |  |  | 1.88 |  |  |  | 3.06 |  |  |  | (38.6 | )
Dividends declared |  |  | 0.32 |  |  |  | 0.31 |  |  |  | 3.2 |  |  |  | 1.28 |  |  |  | 1.24 |  |  |  | 3.2 |
Book value (period end) |  |  | 38.84 |  |  |  | 38.24 |  |  |  | 1.6 |  |  |  | 38.84 |  |  |  | 38.24 |  |  |  | 1.6 |
Tangible book value (period end) (1) |  |  | 21.75 |  |  |  | 21.55 |  |  |  | 0.9 |  |  |  | 21.75 |  |  |  | 21.55 |  |  |  | - |
Average common shares outstanding - basic |  |  | 67,238,005 |  |  |  | 60,461,325 |  |  |  | 11.2 |  |  |  | 67,260,796 |  |  |  | 56,108,084 |  |  |  | 19.9 |
Average common shares outstanding - diluted |  |  | 67,304,442 |  |  |  | 60,562,366 |  |  |  | 11.1 |  |  |  | 67,310,584 |  |  |  | 56,214,364 |  |  |  | 19.7 |
Period end common shares outstanding |  |  | 67,254,706 |  |  |  | 67,824,428 |  |  |  | (0.8 | ) |  |  | 67,254,706 |  |  |  | 67,824,428 |  |  |  | (0.8 | )
Period end preferred shares outstanding |  |  | 150,000 |  |  |  | - |  |  |  | 100.0 |  |  |  | 150,000 |  |  |  | - |  |  |  | 100.0 |
(1) See non-GAAP financial measures for additional information relating to the calculation of this item. |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(2) Certain items excluded from the calculation consist of after-tax restructuring and merger-related expenses. |  |  |  |  |  |  |  |  |
NM -Not Meaningful |  |  |  |  |  |  |  |  |

WESBANCO, INC.
Consolidated Selected Financial Highlights
(unaudited, dollars in thousands)

Selected ratios |  |  |  |  |  |  |  |  |  |  |  |  |
|  | For the Twelve Months Ended |  |
|  | December 31, |  |
|  | 2020 |  |  | 2019 |  |  | % Change |  |
Return on average assets |  |  | 0.73 |  | % |  | 1.24 |  | % |  | (41.13 | ) | %
Return on average assets, excluding |  |  |  |  |  |  |  |  |  |  |  |  |
after-tax restructuring and merger-related expenses (1) |  |  | 0.77 |  |  |  | 1.34 |  |  |  | (42.54 | ) |
Return on average equity |  |  | 4.50 |  |  |  | 7.49 |  |  |  | (39.92 | ) |
Return on average equity, excluding |  |  |  |  |  |  |  |  |  |  |  |  |
after-tax restructuring and merger-related expenses (1) |  |  | 4.79 |  |  |  | 8.11 |  |  |  | (40.94 | ) |
Return on average tangible equity (1) |  |  | 8.61 |  |  |  | 14.01 |  |  |  | (38.54 | ) |
Return on average tangible equity, excluding |  |  |  |  |  |  |  |  |  |  |  |  |
after-tax restructuring and merger-related expenses (1) |  |  | 9.12 |  |  |  | 15.10 |  |  |  | (39.60 | ) |
Return on average tangible common equity (1) |  |  | 8.94 |  |  |  | 14.01 |  |  |  | (36.19 | ) |
Return on average tangible common equity, excluding |  |  |  |  |  |  |  |  |  |  |  |  |
after-tax restructuring and merger-related expenses (1) |  |  | 9.47 |  |  |  | 15.10 |  |  |  | (37.28 | ) |
Yield on earning assets (2) |  |  | 3.80 |  |  |  | 4.37 |  |  |  | (13.04 | ) |
Cost of interest bearing liabilities |  |  | 0.63 |  |  |  | 1.05 |  |  |  | (40.00 | ) |
Net interest spread (2) |  |  | 3.17 |  |  |  | 3.32 |  |  |  | (4.52 | ) |
Net interest margin (2) |  |  | 3.37 |  |  |  | 3.62 |  |  |  | (6.91 | ) |
Efficiency (1) (2) |  |  | 56.38 |  |  |  | 56.68 |  |  |  | (0.53 | ) |
Average loans to average deposits |  |  | 91.66 |  |  |  | 88.59 |  |  |  | 3.47 |  |
Annualized net loan charge-offs/average loans |  |  | 0.06 |  |  |  | 0.09 |  |  |  | (33.33 | ) |
Effective income tax rate |  |  | 15.88 |  |  |  | 17.77 |  |  |  | (10.64 | ) |

|  | For the Quarter Ended |  |
|  | Dec. 31, |  |  | Sept. 30, |  |  | June 30, |  |  | Mar. 31, |  |  | Dec. 31, |  |
|  | 2020 |  |  | 2020 |  |  | 2020 |  |  | 2020 |  |  | 2019 |  |
Return on average assets |  |  | 1.21 |  | % |  | 0.98 |  | % |  | 0.11 |  | % |  | 0.60 |  | % |  | 1.04 |  | %
Return on average assets, excluding |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
after-tax restructuring and merger-related expenses (1) |  |  | 1.22 |  |  |  | 1.05 |  |  |  | 0.12 |  |  |  | 0.70 |  |  |  | 1.30 |  |
Return on average equity |  |  | 7.28 |  |  |  | 6.17 |  |  |  | 0.69 |  |  |  | 3.63 |  |  |  | 6.20 |  |
Return on average equity, excluding |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
after-tax restructuring and merger-related expenses (1) |  |  | 7.33 |  |  |  | 6.60 |  |  |  | 0.75 |  |  |  | 4.26 |  |  |  | 7.75 |  |
Return on average tangible equity (1) |  |  | 13.18 |  |  |  | 11.56 |  |  |  | 1.98 |  |  |  | 7.07 |  |  |  | 11.53 |  |
Return on average tangible equity, excluding |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
after-tax restructuring and merger-related expenses (1) |  |  | 13.28 |  |  |  | 12.31 |  |  |  | 2.08 |  |  |  | 8.18 |  |  |  | 14.24 |  |
Return on average tangible common equity (1) |  |  | 14.49 |  |  |  | 12.21 |  |  |  | 1.98 |  |  |  | 7.07 |  |  |  | 11.53 |  |
Return on average tangible common equity, excluding |  |  |  |  |  |  |  |  |  | . |  |  |  |  |  |  |  |  |  |
after-tax restructuring and merger-related expenses (1) |  |  | 14.60 |  |  |  | 13.00 |  |  |  | 2.08 |  |  |  | 8.18 |  |  |  | 14.24 |  |
Yield on earning assets (2) |  |  | 3.61 |  |  |  | 3.66 |  |  |  | 3.75 |  |  |  | 4.19 |  |  |  | 4.25 |  |
Cost of interest bearing liabilities |  |  | 0.45 |  |  |  | 0.53 |  |  |  | 0.63 |  |  |  | 0.91 |  |  |  | 0.99 |  |
Net interest spread (2) |  |  | 3.16 |  |  |  | 3.13 |  |  |  | 3.12 |  |  |  | 3.28 |  |  |  | 3.26 |  |
Net interest margin (2) |  |  | 3.31 |  |  |  | 3.31 |  |  |  | 3.32 |  |  |  | 3.54 |  |  |  | 3.55 |  |
Efficiency (1) (2) |  |  | 57.06 |  |  |  | 55.23 |  |  |  | 55.57 |  |  |  | 57.69 |  |  |  | 58.29 |  |
Average loans to average deposits |  |  | 89.64 |  |  |  | 90.88 |  |  |  | 91.87 |  |  |  | 94.61 |  |  |  | 90.78 |  |
Annualized net loan charge-offs and recoveries /average loans |  |  | 0.02 |  |  |  | (0.00 | ) |  |  | 0.07 |  |  |  | 0.18 |  |  |  | 0.20 |  |
Effective income tax rate |  |  | 18.13 |  |  |  | 15.66 |  |  |  | 0.93 |  |  |  | 13.40 |  |  |  | 16.23 |  |
Trust assets, market value at period end |  | $ | 5,025,565 |  |  | $ | 4,649,054 |  |  | $ | 4,487,042 |  |  | $ | 4,082,141 |  |  | $ | 4,719,966 |  |
(1) See non-GAAP financial measures for additional information relating to the calculation of this item.
(2) The yield on earning assets, net interest margin, net interest spread and efficiency ratios are presented on a fully taxable-equivalent (FTE) and annualized basis. The FTE basis adjusts for the tax benefit of income on certain tax-exempt loans and investments. WesBanco believes this measure to be the preferred industry measurement of net interest income and provides a relevant comparison between taxable and non-taxable amounts.

WESBANCO, INC.

Consolidated Selected Financial Highlights

(unaudited, dollars in thousands, except shares)

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | % Change |
|  | December 31, |  |  |  |  |  | September 30, |  | September 30, 2020 |
Balance sheets |  | 2020 |  |  | 2019 |  |  | % Change |  | 2020 |  | to December 31, 2020 |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and due from banks |  | $ | 184,361 |  |  | $ | 182,905 |  |  |  | 0.8 |  | $ | 215,982 |  |  | (14.6 | )
Due from banks - interest bearing |  |  | 721,086 |  |  |  | 51,891 |  |  | NM |  |  | 544,284 |  |  | 32.5 |
Securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity securities, at fair value |  |  | 13,047 |  |  |  | 12,343 |  |  |  | 5.7 |  |  | 12,516 |  |  | 4.2 |
Available-for-sale debt securities, at fair value |  |  | 1,978,136 |  |  |  | 2,393,558 |  |  |  | (17.4 | ) |  | 2,045,924 |  |  | (3.3 | )
Held-to-maturity debt securities (fair values of $768,183; $874,523 and $782,401, respectively) |  |  | 731,212 |  |  |  | 851,753 |  |  |  | (14.2 | ) |  | 746,767 |  |  | (2.1 | )
Allowance for credit losses, held-to-maturity debt securities |  |  | (326 | ) |  |  | - |  |  |  | (100.0 | ) |  | (461 | ) |  | 29.3 |
Net held-to-maturity debt securities |  |  | 730,886 |  |  |  | 851,753 |  |  |  | (14.2 | ) |  | 746,306 |  |  | (2.1 | )
Total securities |  |  | 2,722,069 |  |  |  | 3,257,654 |  |  |  | (16.4 | ) |  | 2,804,746 |  |  | (2.9 | )
Loans held for sale |  |  | 168,378 |  |  |  | 43,013 |  |  |  | 291.5 |  |  | 134,151 |  |  | 25.5 |
Portfolio loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial real estate |  |  | 5,705,392 |  |  |  | 5,725,008 |  |  |  | (0.3 | ) |  | 5,708,648 |  |  | (0.1 | )
Commercial and industrial |  |  | 2,407,438 |  |  |  | 1,644,699 |  |  |  | 46.4 |  |  | 2,507,235 |  |  | (4.0 | )
Residential real estate |  |  | 1,720,961 |  |  |  | 1,873,647 |  |  |  | (8.1 | ) |  | 1,798,019 |  |  | (4.3 | )
Home equity |  |  | 646,387 |  |  |  | 649,678 |  |  |  | (0.5 | ) |  | 647,052 |  |  | (0.1 | )
Consumer |  |  | 309,055 |  |  |  | 374,953 |  |  |  | (17.6 | ) |  | 328,592 |  |  | (5.9 | )
Total portfolio loans, net of unearned income |  |  | 10,789,233 |  |  |  | 10,267,985 |  |  |  | 5.1 |  |  | 10,989,546 |  |  | (1.8 | )
Allowance for credit losses - loans (1) |  |  | (185,827 | ) |  |  | (52,429 | ) |  |  | (254.4 | ) |  | (185,109 | ) |  | (0.4 | )
Net portfolio loans |  |  | 10,603,406 |  |  |  | 10,215,556 |  |  |  | 3.8 |  |  | 10,804,437 |  |  | (1.9 | )
Premises and equipment, net |  |  | 249,421 |  |  |  | 261,014 |  |  |  | (4.4 | ) |  | 248,491 |  |  | 0.4 |
Accrued interest receivable |  |  | 66,790 |  |  |  | 43,648 |  |  |  | 53.0 |  |  | 65,023 |  |  | 2.7 |
Goodwill and other intangible assets, net |  |  | 1,163,091 |  |  |  | 1,149,153 |  |  |  | 1.2 |  |  | 1,165,566 |  |  | (0.2 | )
Bank-owned life insurance |  |  | 306,038 |  |  |  | 299,516 |  |  |  | 2.2 |  |  | 304,288 |  |  | 0.6 |
Other assets |  |  | 240,970 |  |  |  | 215,762 |  |  |  | 11.7 |  |  | 265,172 |  |  | (9.1 | )
Total Assets |  | $ | 16,425,610 |  |  | $ | 15,720,112 |  |  |  | 4.5 |  | $ | 16,552,140 |  |  | (0.8 | )
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Deposits: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Non-interest bearing demand |  | $ | 4,070,835 |  |  | $ | 3,178,270 |  |  |  | 28.1 |  | $ | 4,073,305 |  |  | (0.1 | )
Interest bearing demand |  |  | 2,839,536 |  |  |  | 2,316,855 |  |  |  | 22.6 |  |  | 2,633,601 |  |  | 7.8 |
Money market |  |  | 1,685,927 |  |  |  | 1,518,314 |  |  |  | 11.0 |  |  | 1,619,410 |  |  | 4.1 |
Savings deposits |  |  | 2,214,565 |  |  |  | 1,934,647 |  |  |  | 14.5 |  |  | 2,167,597 |  |  | 2.2 |
Certificates of deposit |  |  | 1,618,510 |  |  |  | 2,055,920 |  |  |  | (21.3 | ) |  | 1,707,512 |  |  | (5.2 | )
Total deposits |  |  | 12,429,373 |  |  |  | 11,004,006 |  |  |  | 13.0 |  |  | 12,201,425 |  |  | 1.9 |
Federal Home Loan Bank borrowings |  |  | 549,003 |  |  |  | 1,415,615 |  |  |  | (61.2 | ) |  | 794,621 |  |  | (30.9 | )
Other short-term borrowings |  |  | 241,950 |  |  |  | 282,362 |  |  |  | (14.3 | ) |  | 381,909 |  |  | (36.6 | )
Subordinated debt and junior subordinated debt |  |  | 192,291 |  |  |  | 199,869 |  |  |  | (3.8 | ) |  | 192,150 |  |  | 0.1 |
Total borrowings |  |  | 983,244 |  |  |  | 1,897,846 |  |  |  | (48.2 | ) |  | 1,368,680 |  |  | (28.2 | )
Accrued interest payable |  |  | 4,314 |  |  |  | 8,077 |  |  |  | (46.6 | ) |  | 5,014 |  |  | (14.0 | )
Other liabilities |  |  | 251,942 |  |  |  | 216,262 |  |  |  | 16.5 |  |  | 244,055 |  |  | 3.2 |
Total Liabilities |  |  | 13,668,873 |  |  |  | 13,126,191 |  |  |  | 4.1 |  |  | 13,819,174 |  |  | (1.1 | )
Shareholders' Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock, no par value; 1,000,000 shares authorized in 2020 and 2019, respectively; 150,000 shares 6.75% non-cumulative perpetual preferred stock, Series A, liquidation preference $150.0 million, issued and outstanding at December 31, 2020 and 0 shares issued and outstanding at December 31, 2019, respectively. |  |  | 144,484 |  |  |  | - |  |  |  | 100.0 |  |  | 144,529 |  |  | (0.0 | )
Common stock, $2.0833 par value; 100,000,000 shares authorized in 2020 and 2019, respectively; 68,081,306, 68,078,116 and 68,081,306 shares issued, respectively; 67,254,706, 67,824,428 and 67,216,012 shares outstanding, respectively |  |  | 141,834 |  |  |  | 141,827 |  |  |  | 0.0 |  |  | 141,834 |  |  | - |
Capital surplus |  |  | 1,634,815 |  |  |  | 1,636,966 |  |  |  | (0.1 | ) |  | 1,634,172 |  |  | 0.0 |
Retained earnings |  |  | 831,688 |  |  |  | 824,694 |  |  |  | 0.8 |  |  | 802,892 |  |  | 3.6 |
Treasury stock ( 826,600, 253,688 and 865,294 shares - at cost, respectively) |  |  | (25,949 | ) |  |  | (9,463 | ) |  |  | (174.2 | ) |  | (27,403 | ) |  | 5.3 |
Accumulated other comprehensive income |  |  | 31,359 |  |  |  | 1,201 |  |  | NM |  |  | 38,301 |  |  | (18.1 | )
Deferred benefits for directors |  |  | (1,494 | ) |  |  | (1,304 | ) |  |  | (14.6 | ) |  | (1,359 | ) |  | (9.9 | )
Total Shareholders' Equity |  |  | 2,756,737 |  |  |  | 2,593,921 |  |  |  | 6.3 |  |  | 2,732,966 |  |  | 0.9 |
Total Liabilities and Shareholders' Equity |  | $ | 16,425,610 |  |  | $ | 15,720,112 |  |  |  | 4.5 |  | $ | 16,552,140 |  |  | (0.8 | )
(1) Allowance for credit losses - loans as of December 31, 2020 and September 30, 2020 includes a day 1 adjustment of $41.4 million due to the adoption of ASU 2016-13. |
NM - Not Meaningful |

WESBANCO, INC. |
Consolidated Selected Financial Highlights |
(unaudited, dollars in thousands) |

|  | For the Three Months Ended December 31, |  |  |  | For the Twelve Months Ended December 31, |  |
|  | 2020 |  |  |  | 2019 |  |  |  | 2020 |  |  |  | 2019 |  |
Average balance sheet and net interest margin analysis |  | Average |  | Average |  |  |  | Average |  | Average |  |  |  | Average |  | Average |  |  |  | Average |  | Average |  |
|  | Balance |  | Rate |  |  |  | Balance |  | Rate |  |  |  | Balance |  | Rate |  |  |  | Balance |  | Rate |  |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Due from banks - interest bearing |  | $ | 661,696 |  |  | 0.12 |  | % |  | $ | 67,820 |  |  | 2.00 |  | % |  | $ | 548,078 |  |  | 0.21 |  | % |  | $ | 71,312 |  |  | 2.41 |  | %
Loans, net of unearned income (1) |  |  | 11,056,512 |  |  | 4.12 |  |  |  |  | 8,842,437 |  |  | 4.75 |  |  |  |  | 10,874,763 |  |  | 4.28 |  |  |  |  | 7,991,107 |  |  | 4.92 |  |
Securities: (2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Taxable |  |  | 2,144,038 |  |  | 2.02 |  |  |  |  | 2,474,024 |  |  | 2.68 |  |  |  |  | 2,281,905 |  |  | 2.35 |  |  |  |  | 2,366,631 |  |  | 2.77 |  |
Tax-exempt (3) |  |  | 594,559 |  |  | 3.44 |  |  |  |  | 655,443 |  |  | 3.52 |  |  |  |  | 616,808 |  |  | 3.49 |  |  |  |  | 722,388 |  |  | 3.51 |  |
Total securities |  |  | 2,738,597 |  |  | 2.33 |  |  |  |  | 3,129,467 |  |  | 2.86 |  |  |  |  | 2,898,713 |  |  | 2.59 |  |  |  |  | 3,089,019 |  |  | 2.95 |  |
Other earning assets |  |  | 42,797 |  |  | 6.91 |  |  |  |  | 59,750 |  |  | 6.31 |  |  |  |  | 60,054 |  |  | 6.38 |  |  |  |  | 53,919 |  |  | 6.89 |  |
Total earning assets (3) |  |  | 14,499,602 |  |  | 3.61 |  | % |  |  | 12,099,474 |  |  | 4.25 |  | % |  |  | 14,381,608 |  |  | 3.80 |  | % |  |  | 11,205,357 |  |  | 4.37 |  | %
Other assets |  |  | 2,047,159 |  |  |  |  |  |  |  | 1,819,956 |  |  |  |  |  |  |  | 2,061,096 |  |  |  |  |  |  |  | 1,648,563 |  |  |  |  |
Total Assets |  | $ | 16,546,761 |  |  |  |  |  |  | $ | 13,919,430 |  |  |  |  |  |  | $ | 16,442,704 |  |  |  |  |  |  | $ | 12,853,920 |  |  |  |  |
Liabilities and Shareholders' Equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest bearing demand deposits |  | $ | 2,730,976 |  |  | 0.16 |  | % |  | $ | 2,224,423 |  |  | 0.72 |  | % |  | $ | 2,572,248 |  |  | 0.27 |  | % |  | $ | 2,155,211 |  |  | 0.78 |  | %
Money market accounts |  |  | 1,672,597 |  |  | 0.16 |  |  |  |  | 1,291,999 |  |  | 0.66 |  |  |  |  | 1,611,135 |  |  | 0.29 |  |  |  |  | 1,165,346 |  |  | 0.69 |  |
Savings deposits |  |  | 2,181,804 |  |  | 0.05 |  |  |  |  | 1,799,617 |  |  | 0.21 |  |  |  |  | 2,084,576 |  |  | 0.09 |  |  |  |  | 1,705,858 |  |  | 0.18 |  |
Certificates of deposit |  |  | 1,663,558 |  |  | 0.67 |  |  |  |  | 1,613,060 |  |  | 0.93 |  |  |  |  | 1,814,693 |  |  | 0.75 |  |  |  |  | 1,442,745 |  |  | 1.08 |  |
Total interest bearing deposits |  |  | 8,248,935 |  |  | 0.23 |  |  |  |  | 6,929,099 |  |  | 0.63 |  |  |  |  | 8,082,652 |  |  | 0.33 |  |  |  |  | 6,469,160 |  |  | 0.67 |  |
Federal Home Loan Bank borrowings |  |  | 691,183 |  |  | 2.14 |  |  |  |  | 1,188,220 |  |  | 2.43 |  |  |  |  | 1,135,934 |  |  | 2.17 |  |  |  |  | 1,074,715 |  |  | 2.47 |  |
Other borrowings |  |  | 342,659 |  |  | 0.32 |  |  |  |  | 304,554 |  |  | 1.31 |  |  |  |  | 357,100 |  |  | 0.48 |  |  |  |  | 317,585 |  |  | 1.70 |  |
Subordinated debt and junior subordinated debt |  |  | 192,200 |  |  | 3.97 |  |  |  |  | 174,067 |  |  | 4.84 |  |  |  |  | 193,693 |  |  | 4.29 |  |  |  |  | 170,983 |  |  | 5.23 |  |
Total interest bearing liabilities |  |  | 9,474,977 |  |  | 0.45 |  | % |  |  | 8,595,940 |  |  | 0.99 |  | % |  |  | 9,769,379 |  |  | 0.63 |  | % |  |  | 8,032,443 |  |  | 1.05 |  | %
Non-interest bearing demand deposits |  |  | 4,084,889 |  |  |  |  |  |  |  | 2,811,367 |  |  |  |  |  |  |  | 3,781,583 |  |  |  |  |  |  |  | 2,550,864 |  |  |  |  |
Other liabilities |  |  | 241,959 |  |  |  |  |  |  |  | 183,002 |  |  |  |  |  |  |  | 240,340 |  |  |  |  |  |  |  | 150,618 |  |  |  |  |
Shareholders' equity |  |  | 2,744,936 |  |  |  |  |  |  |  | 2,329,121 |  |  |  |  |  |  |  | 2,651,402 |  |  |  |  |  |  |  | 2,119,995 |  |  |  |  |
Total Liabilities and Shareholders' Equity |  | $ | 16,546,761 |  |  |  |  |  |  | $ | 13,919,430 |  |  |  |  |  |  | $ | 16,442,704 |  |  |  |  |  |  | $ | 12,853,920 |  |  |  |  |
Taxable equivalent net interest spread |  |  |  |  |  | 3.16 |  | % |  |  |  |  |  | 3.26 |  | % |  |  |  |  |  | 3.17 |  | % |  |  |  |  |  | 3.32 |  | %
Taxable equivalent net interest margin |  |  |  |  |  | 3.31 |  | % |  |  |  |  |  | 3.55 |  | % |  |  |  |  |  | 3.37 |  | % |  |  |  |  |  | 3.62 |  | %

(1) | Gross of allowance for loan losses and net of unearned income. Includes non-accrual and loans held for sale. Loan fees included in interest income on loans were $6.7 million and $0.5 million for the three months ended December 31, 2020 and 2019, respectively, and were $16.2 million and $1.8 million for the years ended December 31, 2020 and 2019, respectively. As part of loan fees for both the three months and year ended December 31, 2020, PPP loan fees were $5.7 million and $13.4 million. Additionally, loan accretion included in interest income on loans acquired from prior acquisitions was $4.6 million and $4.9 million for the three months ended December 31, 2020 and 2019, respectively, and was $17.0 million and $17.9 million for the years ended December 31, 2020 and 2019, respectively. Accretion on interest bearing liabilities acquired from prior acquisitions was $1.5 million and $1.9 million for the three months ended December 31, 2020 and 2019, respectively, and was $9.5 million and $2.8 million for the years ended December 31, 2020 and 2019, respectively.

(2) | Average yields on available-for-sale securities are calculated based on amortized cost.

(3) | Taxable equivalent basis is calculated on tax-exempt securities using a rate of 21% for each period presented.

WESBANCO, INC. |
Consolidated Selected Financial Highlights |
(unaudited, dollars in thousands, except shares and per share amounts) |

|  | Quarter Ended |
|  | Dec. 31, |  |  | Sept. 30, |  |  | June 30, |  |  | Mar. 31, |  |  | Dec. 31, |
Statement of Income |  | 2020 |  |  | 2020 |  |  | 2020 |  |  | 2020 |  |  | 2019 |
Interest and dividend income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans, including fees |  | $ | 114,582 |  |  | $ | 116,524 |  |  | $ | 115,068 |  |  | $ | 119,503 |  |  | $ | 105,879 |
Interest and dividends on securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Taxable |  |  | 10,892 |  |  |  | 11,669 |  |  |  | 14,047 |  |  |  | 16,986 |  |  |  | 16,586 |
Tax-exempt |  |  | 4,059 |  |  |  | 4,182 |  |  |  | 4,302 |  |  |  | 4,456 |  |  |  | 4,563 |
Total interest and dividends on securities |  |  | 14,951 |  |  |  | 15,851 |  |  |  | 18,349 |  |  |  | 21,442 |  |  |  | 21,149 |
Other interest income |  |  | 945 |  |  |  | 1,282 |  |  |  | 1,277 |  |  |  | 1,503 |  |  |  | 1,281 |
Total interest and dividend income |  |  | 130,478 |  |  |  | 133,657 |  |  |  | 134,694 |  |  |  | 142,448 |  |  |  | 128,309 |
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest bearing demand deposits |  |  | 1,099 |  |  |  | 1,225 |  |  |  | 1,350 |  |  |  | 3,393 |  |  |  | 4,054 |
Money market deposits |  |  | 678 |  |  |  | 707 |  |  |  | 879 |  |  |  | 2,352 |  |  |  | 2,143 |
Savings deposits |  |  | 280 |  |  |  | 303 |  |  |  | 297 |  |  |  | 923 |  |  |  | 935 |
Certificates of deposit |  |  | 2,797 |  |  |  | 3,197 |  |  |  | 3,514 |  |  |  | 4,054 |  |  |  | 3,800 |
Total interest expense on deposits |  |  | 4,854 |  |  |  | 5,432 |  |  |  | 6,040 |  |  |  | 10,723 |  |  |  | 10,932 |
Federal Home Loan Bank borrowings |  |  | 3,719 |  |  |  | 5,457 |  |  |  | 7,293 |  |  |  | 8,232 |  |  |  | 7,279 |
Other short-term borrowings |  |  | 275 |  |  |  | 304 |  |  |  | 279 |  |  |  | 870 |  |  |  | 1,009 |
Subordinated debt and junior subordinated debt |  |  | 1,918 |  |  |  | 1,871 |  |  |  | 2,069 |  |  |  | 2,461 |  |  |  | 2,125 |
Total interest expense |  |  | 10,766 |  |  |  | 13,064 |  |  |  | 15,681 |  |  |  | 22,286 |  |  |  | 21,345 |
Net interest income |  |  | 119,712 |  |  |  | 120,593 |  |  |  | 119,013 |  |  |  | 120,162 |  |  |  | 106,964 |
Provision for credit losses |  |  | (209 | ) |  |  | 16,288 |  |  |  | 61,841 |  |  |  | 29,821 |  |  |  | 1,824 |
Net interest income after provision for credit losses |  |  | 119,921 |  |  |  | 104,305 |  |  |  | 57,172 |  |  |  | 90,341 |  |  |  | 105,140 |
Non-interest income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trust fees |  |  | 6,754 |  |  |  | 6,426 |  |  |  | 6,202 |  |  |  | 6,952 |  |  |  | 6,699 |
Service charges on deposits |  |  | 5,671 |  |  |  | 5,332 |  |  |  | 4,323 |  |  |  | 6,617 |  |  |  | 7,171 |
Electronic banking fees |  |  | 4,424 |  |  |  | 4,780 |  |  |  | 4,066 |  |  |  | 4,254 |  |  |  | 4,336 |
Net securities brokerage revenue |  |  | 1,402 |  |  |  | 1,725 |  |  |  | 1,384 |  |  |  | 1,679 |  |  |  | 1,393 |
Bank-owned life insurance |  |  | 1,750 |  |  |  | 2,088 |  |  |  | 1,752 |  |  |  | 1,769 |  |  |  | 1,882 |
Mortgage banking income |  |  | 5,442 |  |  |  | 8,488 |  |  |  | 7,531 |  |  |  | 1,276 |  |  |  | 2,957 |
Net securities gains |  |  | 691 |  |  |  | 787 |  |  |  | 1,299 |  |  |  | 1,491 |  |  |  | 520 |
Net gain / (loss) on other real estate owned and other assets |  |  | 18 |  |  |  | (19 | ) |  |  | (66 | ) |  |  | 169 |  |  |  | 61 |
Other income |  |  | 6,553 |  |  |  | 5,005 |  |  |  | 6,369 |  |  |  | 3,802 |  |  |  | 5,819 |
Total non-interest income |  |  | 32,705 |  |  |  | 34,612 |  |  |  | 32,860 |  |  |  | 28,009 |  |  |  | 30,838 |
Non-interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Salaries and wages |  |  | 39,140 |  |  |  | 38,342 |  |  |  | 36,773 |  |  |  | 38,910 |  |  |  | 36,984 |
Employee benefits |  |  | 10,608 |  |  |  | 10,604 |  |  |  | 10,138 |  |  |  | 10,373 |  |  |  | 9,894 |
Net occupancy |  |  | 6,771 |  |  |  | 7,092 |  |  |  | 6,634 |  |  |  | 7,084 |  |  |  | 6,162 |
Equipment |  |  | 6,810 |  |  |  | 6,229 |  |  |  | 5,722 |  |  |  | 6,039 |  |  |  | 5,570 |
Marketing |  |  | 1,675 |  |  |  | 1,577 |  |  |  | 1,567 |  |  |  | 1,138 |  |  |  | 2,059 |
FDIC insurance |  |  | 1,278 |  |  |  | 1,948 |  |  |  | 2,395 |  |  |  | 2,113 |  |  |  | 668 |
Amortization of intangible assets |  |  | 3,327 |  |  |  | 3,346 |  |  |  | 3,365 |  |  |  | 3,374 |  |  |  | 2,916 |
Restructuring and merger-related expense |  |  | 484 |  |  |  | 3,608 |  |  |  | 468 |  |  |  | 5,164 |  |  |  | 11,522 |
Other operating expenses |  |  | 17,976 |  |  |  | 17,198 |  |  |  | 18,440 |  |  |  | 17,138 |  |  |  | 16,781 |
Total non-interest expense |  |  | 88,069 |  |  |  | 89,943 |  |  |  | 85,502 |  |  |  | 91,333 |  |  |  | 92,556 |
Income before provision for income taxes |  |  | 64,557 |  |  |  | 48,974 |  |  |  | 4,530 |  |  |  | 27,017 |  |  |  | 43,422 |
Provision for income taxes |  |  | 11,703 |  |  |  | 7,669 |  |  |  | 42 |  |  |  | 3,621 |  |  |  | 7,046 |
Net Income |  |  | 52,854 |  |  |  | 41,305 |  |  |  | 4,488 |  |  |  | 23,396 |  |  |  | 36,376 |
Preferred stock dividends |  |  | 2,644 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Net income available to common shareholders |  | $ | 50,210 |  |  | $ | 41,305 |  |  | $ | 4,488 |  |  | $ | 23,396 |  |  | $ | 36,376 |
Taxable equivalent net interest income |  | $ | 120,790 |  |  | $ | 121,705 |  |  | $ | 120,156 |  |  | $ | 121,346 |  |  | $ | 108,177 |
Per common share data |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income per common share - basic |  | $ | 0.75 |  |  | $ | 0.61 |  |  | $ | 0.07 |  |  | $ | 0.34 |  |  | $ | 0.60 |
Net income per common share - diluted |  |  | 0.75 |  |  |  | 0.61 |  |  |  | 0.07 |  |  |  | 0.34 |  |  |  | 0.60 |
Net income per common share - diluted, excluding certain items (1)(2) |  |  | 0.76 |  |  |  | 0.66 |  |  |  | 0.07 |  |  |  | 0.40 |  |  |  | 0.75 |
Dividends declared |  |  | 0.32 |  |  |  | 0.32 |  |  |  | 0.32 |  |  |  | 0.32 |  |  |  | 0.31 |
Book value (period end) |  |  | 38.84 |  |  |  | 38.51 |  |  |  | 38.23 |  |  |  | 38.56 |  |  |  | 38.24 |
Tangible book value (period end) (1) |  |  | 21.75 |  |  |  | 21.39 |  |  |  | 21.10 |  |  |  | 21.36 |  |  |  | 21.55 |
Average common shares outstanding - basic |  |  | 67,238,005 |  |  |  | 67,214,759 |  |  |  | 67,104,828 |  |  |  | 67,486,550 |  |  |  | 60,461,325 |
Average common shares outstanding - diluted |  |  | 67,304,442 |  |  |  | 67,269,303 |  |  |  | 67,181,756 |  |  |  | 67,587,446 |  |  |  | 60,562,366 |
Period end common shares outstanding |  |  | 67,254,706 |  |  |  | 67,216,012 |  |  |  | 67,211,192 |  |  |  | 67,058,155 |  |  |  | 67,824,428 |
Period end preferred shares outstanding |  |  | 150,000 |  |  |  | 150,000 |  |  |  | - |  |  |  | - |  |  |  | - |
Full time equivalent employees |  |  | 2,612 |  |  |  | 2,618 |  |  |  | 2,676 |  |  |  | 2,703 |  |  |  | 2,705 |
(1) See non-GAAP financial measures for additional information relating to the calculation of this item. |
(2) Certain items excluded from the calculation consist of after-tax restructuring and merger-related expenses. |

WESBANCO, INC. |
Consolidated Selected Financial Highlights |
(unaudited, dollars in thousands) |

|  | Quarter Ended |  |
|  | Dec. 31, |  |  | Sept. 30, |  |  | June 30, |  |  | Mar. 31, |  |  | Dec. 31, |  |
Asset quality data |  | 2020 |  |  | 2020 |  |  | 2020 |  |  | 2020 |  |  | 2019 |  |
Non-performing assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Troubled debt restructurings - accruing |  | $ | 3,927 |  |  | $ | 4,191 |  |  | $ | 5,105 |  |  | $ | 5,434 |  |  | $ | 5,431 |  |
Non-accrual loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Troubled debt restructurings |  |  | 1,828 |  |  |  | 1,818 |  |  |  | 1,339 |  |  |  | 1,571 |  |  |  | 1,422 |  |
Other non-accrual loans (1) |  |  | 35,052 |  |  |  | 35,448 |  |  |  | 34,119 |  |  |  | 32,796 |  |  |  | 43,491 |  |
Total non-accrual loans |  |  | 36,880 |  |  |  | 37,266 |  |  |  | 35,458 |  |  |  | 34,367 |  |  |  | 44,913 |  |
Total non-performing loans |  |  | 40,807 |  |  |  | 41,457 |  |  |  | 40,563 |  |  |  | 39,801 |  |  |  | 50,344 |  |
Other real estate and repossessed assets |  |  | 549 |  |  |  | 738 |  |  |  | 1,212 |  |  |  | 1,083 |  |  |  | 4,178 |  |
Total non-performing assets |  | $ | 41,356 |  |  | $ | 42,195 |  |  | $ | 41,775 |  |  | $ | 40,884 |  |  | $ | 54,522 |  |
Past due loans (1): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Loans past due 30-89 days |  | $ | 31,596 |  |  | $ | 17,338 |  |  | $ | 30,595 |  |  | $ | 32,805 |  |  | $ | 36,330 |  |
Loans past due 90 days or more |  |  | 8,846 |  |  |  | 10,170 |  |  |  | 36,903 |  |  |  | 14,287 |  |  |  | 11,613 |  |
Total past due loans |  | $ | 40,442 |  |  | $ | 27,508 |  |  | $ | 67,498 |  |  | $ | 47,092 |  |  | $ | 47,943 |  |
Criticized and classified loans (2): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Criticized loans |  | $ | 362,295 |  |  | $ | 248,264 |  |  | $ | 148,580 |  |  | $ | 120,801 |  |  | $ | 118,959 |  |
Classified loans |  |  | 132,650 |  |  |  | 108,594 |  |  |  | 98,127 |  |  |  | 95,162 |  |  |  | 103,519 |  |
Total criticized and classified loans |  | $ | 494,945 |  |  | $ | 356,858 |  |  | $ | 246,707 |  |  | $ | 215,963 |  |  | $ | 222,478 |  |
Loans past due 30-89 days / total portfolio loans (3) |  |  | 0.29 |  | % |  | 0.16 |  | % |  | 0.28 |  | % |  | 0.32 |  | % |  | 0.35 |  | %
Loans past due 90 days or more / total portfolio loans |  |  | 0.08 |  |  |  | 0.09 |  |  |  | 0.33 |  |  |  | 0.14 |  |  |  | 0.11 |  |
Non-performing loans / total portfolio loans |  |  | 0.38 |  |  |  | 0.38 |  |  |  | 0.37 |  |  |  | 0.38 |  |  |  | 0.49 |  |
Non-performing assets/total portfolio loans, other real estate and repossessed assets |  |  | 0.38 |  |  |  | 0.38 |  |  |  | 0.38 |  |  |  | 0.39 |  |  |  | 0.53 |  |
Non-performing assets / total assets |  |  | 0.25 |  |  |  | 0.26 |  |  |  | 0.25 |  |  |  | 0.26 |  |  |  | 0.35 |  |
Criticized and classified loans / total portfolio loans |  |  | 4.59 |  |  |  | 3.25 |  |  |  | 2.23 |  |  |  | 2.09 |  |  |  | 2.17 |  |
Allowance for credit losses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for credit losses - loans (4) |  | $ | 185,827 |  |  | $ | 185,109 |  |  | $ | 168,475 |  |  | $ | 114,272 |  |  | $ | 52,429 |  |
Provision for credit losses (5) |  |  | (209 | ) |  |  | 16,288 |  |  |  | 61,841 |  |  |  | 29,821 |  |  |  | 1,824 |  |
Net loan and deposit account overdraft charge-offs |  |  | 524 |  |  |  | (133 | ) |  |  | 1,942 |  |  |  | 4,716 |  |  |  | 4,476 |  |
Annualized net loan charge-offs and recoveries / average loans |  |  | 0.02 |  | % |  | (0.00 | ) | % |  | 0.07 |  | % |  | 0.18 |  | % |  | 0.20 |  | %
Allowance for credit losses - loans / total portfolio loans |  |  | 1.72 |  | % |  | 1.68 |  | % |  | 1.52 |  | % |  | 1.10 |  | % |  | 0.51 |  | %
Allowance for credit losses - loans / total portfolio loans excluding PPP loans |  |  | 1.85 |  | % |  | 1.83 |  | % |  | 1.65 |  | % |  | 1.10 |  | % |  | 0.51 |  | %
Allowance for credit losses - loans / non-performing loans |  |  | 4.55 |  | x |  | 4.47 |  | x |  | 4.15 |  | x |  | 2.87 |  | x |  | 1.04 |  | x
Allowance for credit losses - loans / non-performing loans and loans past due |  |  | 2.29 |  | x |  | 2.68 |  | x |  | 1.56 |  | x |  | 1.32 |  | x |  | 0.53 |  | x
|  | Quarter Ended |  |
|  | Dec. 31, |  |  | Sept. 30, |  |  | June 30, |  |  | Mar. 31, |  |  | Dec. 31, |  |
|  | 2020 |  |  | 2020 |  |  | 2020 |  |  | 2020 |  |  | 2019 |  |
Capital ratios |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tier I leverage capital |  |  | 10.51 |  | % |  | 10.18 |  | % |  | 9.09 |  | % |  | 9.64 |  | % |  | 11.30 |  | %
Tier I risk-based capital |  |  | 14.72 |  |  |  | 14.29 |  |  |  | 12.59 |  |  |  | 12.51 |  |  |  | 12.89 |  |
Total risk-based capital |  |  | 17.57 |  |  |  | 17.18 |  |  |  | 15.33 |  |  |  | 14.83 |  |  |  | 15.12 |  |
Common equity tier 1 capital ratio (CET 1) |  |  | 13.40 |  |  |  | 12.99 |  |  |  | 12.59 |  |  |  | 12.51 |  |  |  | 12.89 |  |
Average shareholders' equity to average assets |  |  | 16.59 |  |  |  | 15.92 |  |  |  | 15.57 |  |  |  | 16.43 |  |  |  | 16.73 |  |
Tangible equity to tangible assets (6) |  |  | 10.52 |  |  |  | 10.27 |  |  |  | 9.09 |  |  |  | 9.65 |  |  |  | 10.02 |  |
Tangible common equity to tangible assets (6) |  |  | 9.58 |  |  |  | 9.33 |  |  |  | 9.09 |  |  |  | 9.65 |  |  |  | 10.02 |  |
(1) Excludes non-performing loans. |  |
(2) Criticized and classified commercial loans may include loans that are also reported as non-performing or past due. |  |
(3) Total portfolio loans includes $726.3 million of PPP loans as of December 31, 2020. |  |
(4) Excludes the allowance for credit losses - loan commitments, which is included in other liabilities, of $9.5 million, $10.8 million and $10.7 million as of December 31, 2020, September 30, 2020 and June 30, 2020, respectively. |  |
(5) The provision for credit losses includes ($1.3) million, $0.1 million and $5.1 million for loan commitments for the three months ended December 31, 2020, September 30, 2020 and June 30, 2020, respectively. |  |
(6) See non-GAAP financial measures for additional information relating to the calculation of this ratio. |  |

NON-GAAP FINANCIAL MEASURES |  |  |  |  |  |  |
The following non-GAAP financial measures used by WesBanco provide information useful to investors in understanding WesBanco’s operating performance and trends, and facilitate comparisons with the performance of WesBanco’s peers. The following tables summarize the non-GAAP financial measures derived from amounts reported in WesBanco’s financial statements. |
|  |  |  | Three Months Ended |  |  | Year to Date |
|  |  |  | Dec. 31, |  |  | Sept. 30, |  |  | June 30, |  |  | Mar. 31, |  |  | Dec. 31, |  |  | Dec. 31, |
|  | (unaudited, dollars in thousands, except shares and per share amounts) |  | 2020 |  |  | 2020 |  |  | 2020 |  |  | 2020 |  |  | 2019 |  |  | 2020 |  | 2019 |
|  | Return on average assets, excluding after-tax restructuring and merger-related expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Net income available to common shareholders |  | $ | 50,210 |  |  | $ | 41,305 |  |  | $ | 4,488 |  |  | $ | 23,396 |  |  | $ | 36,376 |  |  | $ | 119,400 |  | $ | 158,873 |
|  | Plus: after-tax restructuring and merger-related expenses (1) |  |  | 383 |  |  |  | 2,850 |  |  |  | 370 |  |  |  | 4,080 |  |  |  | 9,102 |  |  |  | 7,683 |  |  | 12,954 |
|  | Net income available to common shareholders excluding after-tax restructuring and merger-related expenses |  |  | 50,593 |  |  |  | 44,155 |  |  |  | 4,858 |  |  |  | 27,476 |  |  |  | 45,478 |  |  |  | 127,083 |  |  | 171,827 |
|  | Average total assets |  | $ | 16,546,761 |  |  | $ | 16,719,717 |  |  | $ | 16,715,211 |  |  | $ | 15,784,939 |  |  | $ | 13,919,430 |  |  | $ | 16,442,704 |  | $ | 12,853,920 |
|  | Return on average assets, excluding after-tax restructuring and merger-related expenses (annualized) (2) |  |  | 1.22 | % |  |  | 1.05 | % |  |  | 0.12 | % |  |  | 0.70 | % |  |  | 1.30 | % |  |  | 0.77 | % |  | 1.34 | %
|  | Return on average equity, excluding after-tax restructuring and merger-related expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Net income available to common shareholders |  | $ | 50,210 |  |  | $ | 41,305 |  |  | $ | 4,488 |  |  | $ | 23,396 |  |  | $ | 36,376 |  |  | $ | 119,400 |  | $ | 158,873 |
|  | Plus: after-tax restructuring and merger-related expenses (1) |  |  | 383 |  |  |  | 2,850 |  |  |  | 370 |  |  |  | 4,080 |  |  |  | 9,102 |  |  |  | 7,683 |  |  | 12,954 |
|  | Net income available to common shareholders excluding after-tax restructuring and merger-related expenses |  |  | 50,593 |  |  |  | 44,155 |  |  |  | 4,858 |  |  |  | 27,476 |  |  |  | 45,478 |  |  |  | 127,083 |  |  | 171,827 |
|  | Average total shareholders' equity |  |  | 2,744,936 |  |  |  | 2,662,513 |  |  |  | 2,602,938 |  |  |  | 2,594,069 |  |  |  | 2,329,121 |  |  |  | 2,651,402 |  |  | 2,119,995 |
|  | Return on average equity, excluding after-tax restructuring and merger-related expenses (annualized) (2) |  |  | 7.33 | % |  |  | 6.60 | % |  |  | 0.75 | % |  |  | 4.26 | % |  |  | 7.75 | % |  |  | 4.79 | % |  | 8.11 | %
|  | Return on average tangible equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Net income available to common shareholders |  | $ | 50,210 |  |  | $ | 41,305 |  |  | $ | 4,488 |  |  | $ | 23,396 |  |  | $ | 36,376 |  |  | $ | 119,400 |  | $ | 158,873 |
|  | Plus: amortization of intangibles (1) |  |  | 2,628 |  |  |  | 2,643 |  |  |  | 2,658 |  |  |  | 2,665 |  |  |  | 2,304 |  |  |  | 10,595 |  |  | 8,169 |
|  | Net income available to common shareholders before amortization of intangibles |  |  | 52,838 |  |  |  | 43,948 |  |  |  | 7,146 |  |  |  | 26,061 |  |  |  | 38,680 |  |  |  | 129,995 |  |  | 167,042 |
|  | Average total shareholders' equity |  |  | 2,744,936 |  |  |  | 2,662,513 |  |  |  | 2,602,938 |  |  |  | 2,594,069 |  |  |  | 2,329,121 |  |  |  | 2,651,402 |  |  | 2,119,995 |
|  | Less: average goodwill and other intangibles, net of def. tax liability |  |  | (1,150,184 | ) |  |  | (1,150,549 | ) |  |  | (1,152,856 | ) |  |  | (1,112,327 | ) |  |  | (997,658 | ) |  |  | (1,141,528 | ) |  | (927,974 | )
|  | Average tangible equity |  | $ | 1,594,752 |  |  | $ | 1,511,964 |  |  | $ | 1,450,082 |  |  | $ | 1,481,742 |  |  | $ | 1,331,463 |  |  | $ | 1,509,874 |  | $ | 1,192,021 |
|  | Return on average tangible equity (annualized) (2) |  |  | 13.18 | % |  |  | 11.56 | % |  |  | 1.98 | % |  |  | 7.07 | % |  |  | 11.53 | % |  |  | 8.61 | % |  | 14.01 | %
|  | Average tangible common equity |  | $ | 1,450,243 |  |  | $ | 1,431,657 |  |  | $ | 1,450,082 |  |  | $ | 1,481,742 |  |  | $ | 1,331,463 |  |  | $ | 1,453,363 |  | $ | 1,192,021 |
|  | Return on average common tangible equity (annualized) (2) |  |  | 14.49 | % |  |  | 12.21 | % |  |  | 1.98 | % |  |  | 7.07 | % |  |  | 11.53 | % |  |  | 8.94 | % |  | 14.01 | %
|  | Return on average tangible equity, excluding after-tax restructuring and merger-related expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Net income available to common shareholders |  | $ | 50,210 |  |  | $ | 41,305 |  |  | $ | 4,488 |  |  | $ | 23,396 |  |  | $ | 36,376 |  |  | $ | 119,400 |  | $ | 158,873 |
|  | Plus: after-tax restructuring and merger-related expenses (1) |  |  | 383 |  |  |  | 2,850 |  |  |  | 370 |  |  |  | 4,080 |  |  |  | 9,102 |  |  |  | 7,683 |  |  | 12,954 |
|  | Plus: amortization of intangibles (1) |  |  | 2,628 |  |  |  | 2,643 |  |  |  | 2,658 |  |  |  | 2,665 |  |  |  | 2,304 |  |  |  | 10,595 |  |  | 8,169 |
|  | Net income available to common shareholders before amortization of intangibles and excluding after-tax restructuring and merger-related expenses |  |  | 53,221 |  |  |  | 46,798 |  |  |  | 7,516 |  |  |  | 30,141 |  |  |  | 47,782 |  |  |  | 137,678 |  |  | 179,996 |
|  | Average total shareholders' equity |  |  | 2,744,936 |  |  |  | 2,662,513 |  |  |  | 2,602,938 |  |  |  | 2,594,069 |  |  |  | 2,329,121 |  |  |  | 2,651,402 |  |  | 2,119,995 |
|  | Less: average goodwill and other intangibles, net of def. tax liability |  |  | (1,150,184 | ) |  |  | (1,150,549 | ) |  |  | (1,152,856 | ) |  |  | (1,112,327 | ) |  |  | (997,658 | ) |  |  | (1,141,528 | ) |  | (927,974 | )
|  | Average tangible equity |  | $ | 1,594,752 |  |  | $ | 1,511,964 |  |  | $ | 1,450,082 |  |  | $ | 1,481,742 |  |  | $ | 1,331,463 |  |  | $ | 1,509,874 |  | $ | 1,192,021 |
|  | Return on average tangible equity, excluding after-tax restructuring and merger-related expenses (annualized) (2) |  |  | 13.28 | % |  |  | 12.31 | % |  |  | 2.08 | % |  |  | 8.18 | % |  |  | 14.24 | % |  |  | 9.12 | % |  | 15.10 | %
|  | Average tangible equity |  | $ | 1,450,243 |  |  | $ | 1,431,657 |  |  | $ | 1,450,082 |  |  | $ | 1,481,742 |  |  | $ | 1,331,463 |  |  | $ | 1,453,363 |  | $ | 1,192,021 |
|  | Return on average tangible common equity, excluding after-tax restructuring and merger-related expenses (annualized) (2) |  |  | 14.60 | % |  |  | 13.00 | % |  |  | 2.08 | % |  |  | 8.18 | % |  |  | 14.24 | % |  |  | 9.47 | % |  | 15.10 | %

|  | Efficiency ratio: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Non-interest expense |  | $ | 88,069 |  |  | $ | 89,943 |  |  | $ | 85,502 |  |  | $ | 91,333 |  |  | $ | 92,556 |  |  | $ | 354,845 |  | $ | 312,208 |
|  | Less: restructuring and merger-related expense |  |  | (484 | ) |  |  | (3,608 | ) |  |  | (468 | ) |  |  | (5,164 | ) |  |  | (11,522 | ) |  |  | (9,725 | ) |  | (16,397 | )
|  | Non-interest expense excluding restructuring and merger-related expense |  |  | 87,585 |  |  |  | 86,335 |  |  |  | 85,034 |  |  |  | 86,169 |  |  |  | 81,034 |  |  |  | 345,120 |  |  | 295,811 |
|  | Net interest income on a fully taxable equivalent basis |  |  | 120,790 |  |  |  | 121,705 |  |  |  | 120,156 |  |  |  | 121,346 |  |  |  | 108,177 |  |  |  | 483,999 |  |  | 405,222 |
|  | Non-interest income |  |  | 32,705 |  |  |  | 34,612 |  |  |  | 32,860 |  |  |  | 28,009 |  |  |  | 30,838 |  |  |  | 128,185 |  |  | 116,716 |
|  | Net interest income on a fully taxable equivalent basis plus non-interest income |  | $ | 153,495 |  |  | $ | 156,317 |  |  | $ | 153,016 |  |  | $ | 149,355 |  |  | $ | 139,015 |  |  | $ | 612,184 |  | $ | 521,938 |
|  | Efficiency Ratio |  |  | 57.06 | % |  |  | 55.23 | % |  |  | 55.57 | % |  |  | 57.69 | % |  |  | 58.29 | % |  |  | 56.38 | % |  | 56.68 | %
|  | Net income available to common shareholders, excluding after-tax restructuring and merger-related expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Net income available to common shareholders |  | $ | 50,210 |  |  | $ | 41,305 |  |  | $ | 4,488 |  |  | $ | 23,396 |  |  | $ | 36,376 |  |  | $ | 119,400 |  | $ | 158,873 |
|  | Add: After-tax restructuring and merger-related expenses (1) |  |  | 383 |  |  |  | 2,850 |  |  |  | 370 |  |  |  | 4,080 |  |  |  | 9,102 |  |  |  | 7,683 |  |  | 12,954 |
|  | Net income available to common shareholders, excluding after-tax restructuring and merger-related expenses |  | $ | 50,593 |  |  | $ | 44,155 |  |  | $ | 4,858 |  |  | $ | 27,476 |  |  | $ | 45,478 |  |  | $ | 127,083 |  | $ | 171,827 |
|  | Net income per common share - diluted, excluding after-tax restructuring and merger-related expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Net income per common share - diluted |  | $ | 0.75 |  |  | $ | 0.61 |  |  | $ | 0.07 |  |  | $ | 0.35 |  |  | $ | 0.60 |  |  | $ | 1.77 |  | $ | 2.83 |
|  | Add: After-tax restructuring and merger-related expenses per common share - diluted (1) |  |  | 0.01 |  |  |  | 0.05 |  |  |  | (0.00 | ) |  |  | 0.06 |  |  |  | 0.15 |  |  |  | 0.11 |  |  | 0.23 |
|  | Net income per common share - diluted, excluding after-tax restructuring and merger-related expenses |  | $ | 0.76 |  |  | $ | 0.66 |  |  | $ | 0.07 |  |  | $ | 0.41 |  |  | $ | 0.75 |  |  | $ | 1.88 |  | $ | 3.06 |

|  | Period End |  |  |  |
|  | Dec. 31, |  |  | Sept. 30, |  |  | June 30, |  |  | Mar. 31, |  |  | Dec. 31, |  |  |  |
|  | 2020 |  |  | 2020 |  |  | 2020 |  |  | 2020 |  |  | 2019 |  |  |  |
Tangible book value per share: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total shareholders' equity |  | $ | 2,756,737 |  |  | $ | 2,732,966 |  |  | $ | 2,569,521 |  |  | $ | 2,586,060 |  |  | $ | 2,593,921 |  |  |  |
Less: goodwill and other intangible assets, net of def. tax liability |  |  | (1,149,161 | ) |  |  | (1,150,939 | ) |  |  | (1,151,523 | ) |  |  | (1,154,033 | ) |  |  | (1,132,262 | ) |  |  |
Less: preferred shareholders' equity |  |  | (144,484 | ) |  |  | (144,529 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  |
Tangible common equity |  |  | 1,463,092 |  |  |  | 1,437,498 |  |  |  | 1,417,998 |  |  |  | 1,432,027 |  |  |  | 1,461,659 |  |  |  |
Common shares outstanding |  |  | 67,254,706 |  |  |  | 67,216,012 |  |  |  | 67,211,192 |  |  |  | 67,058,155 |  |  |  | 67,824,428 |  |  |  |
Tangible book value per share |  | $ | 21.75 |  |  | $ | 21.39 |  |  | $ | 21.10 |  |  | $ | 21.36 |  |  | $ | 21.55 |  |  |  |
Tangible common equity to tangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total shareholders' equity |  | $ | 2,756,737 |  |  | $ | 2,732,966 |  |  | $ | 2,569,521 |  |  | $ | 2,586,060 |  |  | $ | 2,593,921 |  |  |  |
Less: goodwill and other intangible assets, net of def. tax liability |  |  | (1,149,161 | ) |  |  | (1,150,939 | ) |  |  | (1,151,523 | ) |  |  | (1,154,033 | ) |  |  | (1,132,262 | ) |  |  |
Tangible equity |  |  | 1,607,576 |  |  |  | 1,582,027 |  |  |  | 1,417,998 |  |  |  | 1,432,027 |  |  |  | 1,461,659 |  |  |  |
Less: preferred shareholders' equity |  |  | (144,484 | ) |  |  | (144,529 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  |
Tangible common equity |  |  | 1,463,092 |  |  |  | 1,437,498 |  |  |  | 1,417,998 |  |  |  | 1,432,027 |  |  |  | 1,461,659 |  |  |  |
Total assets |  |  | 16,425,610 |  |  |  | 16,552,140 |  |  |  | 16,755,395 |  |  |  | 15,995,572 |  |  |  | 15,720,112 |  |  |  |
Less: goodwill and other intangible assets, net of def. tax liability |  |  | (1,149,161 | ) |  |  | (1,150,939 | ) |  |  | (1,151,523 | ) |  |  | (1,154,033 | ) |  |  | (1,132,262 | ) |  |  |
Tangible assets |  | $ | 15,276,449 |  |  | $ | 15,401,201 |  |  | $ | 15,603,872 |  |  | $ | 14,841,539 |  |  | $ | 14,587,850 |  |  |  |
Tangible equity to tangible assets |  |  | 10.52 | % |  |  | 10.27 | % |  |  | 9.09 | % |  |  | 9.65 | % |  |  | 10.02 | % |  |  |
Tangible common equity to tangible assets |  |  | 9.58 | % |  |  | 9.33 | % |  |  | 9.09 | % |  |  | 9.65 | % |  |  | 10.02 | % |  |  |
(1) Tax effected at 21% for all periods presented. |  |  |  |
(2) The ratios are annualized by utilizing actual number of days in the quarter versus the year. |  |  |  |

ADDITIONAL NON-GAAP FINANCIAL MEASURES |
The following non-GAAP financial measures used by WesBanco provide information useful to investors in understanding WesBanco’s operating performance and trends, and facilitate comparisons with the performance of WesBanco’s peers. The following tables summarize the non-GAAP financial measures derived from amounts reported in WesBanco’s financial statements.

|  |  |  | Three Months Ended |  |  | Year to Date |
|  |  |  | Dec. 31, |  |  | Sept. 30, |  |  | June 30, |  |  | Mar. 31, |  |  | Dec. 31, |  |  | Dec. 31, |
|  | (unaudited, dollars in thousands, except shares and per share amounts) |  | 2020 |  |  | 2020 |  |  | 2020 |  |  | 2020 |  |  | 2019 |  |  | 2020 |  | 2019 |
|  | Pre-tax, pre-provision income: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Income before provision for income taxes |  | $ | 64,557 |  |  | $ | 48,974 |  |  | $ | 4,530 |  |  | $ | 27,017 |  |  | $ | 43,422 |  |  | $ | 145,079 |  | $ | 193,214 |
|  | Add: provision for credit losses |  |  | (209 | ) |  |  | 16,288 |  |  |  | 61,841 |  |  |  | 29,821 |  |  |  | 1,824 |  |  |  | 107,741 |  |  | 11,198 |
|  | Pre-tax, pre-provision income |  | $ | 64,348 |  |  | $ | 65,262 |  |  | $ | 66,371 |  |  | $ | 56,838 |  |  | $ | 45,246 |  |  | $ | 252,820 |  | $ | 204,412 |
|  | Pre-tax, pre-provision income, excluding restructuring and merger-related expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Income before provision for income taxes |  | $ | 64,557 |  |  | $ | 48,974 |  |  | $ | 4,530 |  |  | $ | 27,017 |  |  | $ | 43,422 |  |  | $ | 145,079 |  | $ | 193,214 |
|  | Add: provision for credit losses |  |  | (209 | ) |  |  | 16,288 |  |  |  | 61,841 |  |  |  | 29,821 |  |  |  | 1,824 |  |  |  | 107,741 |  |  | 11,198 |
|  | Add: restructuring and merger-related expenses |  |  | 484 |  |  |  | 3,608 |  |  |  | 468 |  |  |  | 5,164 |  |  |  | 11,522 |  |  |  | 9,725 |  |  | 16,397 |
|  | Pre-tax, pre-provision income, excluding restructuring and merger-related expenses |  | $ | 64,832 |  |  | $ | 68,870 |  |  | $ | 66,839 |  |  | $ | 62,002 |  |  | $ | 56,768 |  |  | $ | 262,545 |  | $ | 220,809 |
|  | 'Return on average assets, excluding certain items (1): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Income before provision for income taxes |  | $ | 64,557 |  |  | $ | 48,974 |  |  | $ | 4,530 |  |  | $ | 27,017 |  |  | $ | 43,422 |  |  | $ | 145,079 |  | $ | 193,214 |
|  | Add: provision for credit losses |  |  | (209 | ) |  |  | 16,288 |  |  |  | 61,841 |  |  |  | 29,821 |  |  |  | 1,824 |  |  |  | 107,741 |  |  | 11,198 |
|  | Add: restructuring and merger-related expenses |  |  | 484 |  |  |  | 3,608 |  |  |  | 468 |  |  |  | 5,164 |  |  |  | 11,522 |  |  |  | 9,725 |  |  | 16,397 |
|  | Pre-tax, pre-provision income, excluding restructuring and merger-related expenses |  |  | 64,832 |  |  |  | 68,870 |  |  |  | 66,839 |  |  |  | 62,002 |  |  |  | 56,768 |  |  |  | 262,545 |  |  | 220,809 |
|  | Average total assets |  | $ | 16,546,761 |  |  | $ | 16,719,717 |  |  | $ | 16,715,211 |  |  | $ | 15,784,939 |  |  | $ | 13,919,430 |  |  | $ | 16,442,704 |  | $ | 12,853,920 |
|  | Return on average assets, excluding certain items (annualized) (1) (2) |  |  | 1.56 | % |  |  | 1.64 | % |  |  | 1.61 | % |  |  | 1.58 | % |  |  | 1.62 | % |  |  | 1.60 | % |  | 1.72 | %
|  | Return on average equity, excluding certain items (1): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Income before provision for income taxes |  | $ | 64,557 |  |  | $ | 48,974 |  |  | $ | 4,530 |  |  | $ | 27,017 |  |  | $ | 43,422 |  |  | $ | 145,079 |  | $ | 193,214 |
|  | Add: provision for credit losses |  |  | (209 | ) |  |  | 16,288 |  |  |  | 61,841 |  |  |  | 29,821 |  |  |  | 1,824 |  |  |  | 107,741 |  |  | 11,198 |
|  | Add: restructuring and merger-related expenses |  |  | 484 |  |  |  | 3,608 |  |  |  | 468 |  |  |  | 5,164 |  |  |  | 11,522 |  |  |  | 9,725 |  |  | 16,397 |
|  | Pre-tax, pre-provision income, excluding restructuring and merger-related expenses |  |  | 64,832 |  |  |  | 68,870 |  |  |  | 66,839 |  |  |  | 62,002 |  |  |  | 56,768 |  |  |  | 262,545 |  |  | 220,809 |
|  | Average total shareholders' equity |  | $ | 2,744,936 |  |  | $ | 2,662,513 |  |  | $ | 2,602,938 |  |  | $ | 2,594,069 |  |  | $ | 2,329,121 |  |  | $ | 2,651,402 |  | $ | 2,119,995 |
|  | Return on average equity, excluding certain items (annualized) (1) (2) |  |  | 9.40 | % |  |  | 10.29 | % |  |  | 10.33 | % |  |  | 9.61 | % |  |  | 9.67 | % |  |  | 9.90 | % |  | 10.42 | %
|  | Return on average tangible equity, excluding certain items (1): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Income before provision for income taxes |  | $ | 64,557 |  |  | $ | 48,974 |  |  | $ | 4,530 |  |  | $ | 27,017 |  |  | $ | 43,422 |  |  | $ | 145,079 |  | $ | 193,214 |
|  | Add: provision for credit losses |  |  | (209 | ) |  |  | 16,288 |  |  |  | 61,841 |  |  |  | 29,821 |  |  |  | 1,824 |  |  |  | 107,741 |  |  | 11,198 |
|  | Add: amortization of intangibles |  |  | 3,327 |  |  |  | 3,346 |  |  |  | 3,365 |  |  |  | 3,374 |  |  |  | 2,916 |  |  |  | 13,411 |  |  | 10,340 |
|  | Add: restructuring and merger-related expenses |  |  | 484 |  |  |  | 3,608 |  |  |  | 468 |  |  |  | 5,164 |  |  |  | 11,522 |  |  |  | 9,725 |  |  | 16,397 |
|  | Income before provision, restructuring and merger-related expenses and amortization of intangibles |  |  | 68,159 |  |  |  | 72,216 |  |  |  | 70,204 |  |  |  | 65,376 |  |  |  | 59,684 |  |  |  | 275,956 |  |  | 231,149 |
|  | Average total shareholders' equity |  |  | 2,744,936 |  |  |  | 2,662,513 |  |  |  | 2,602,938 |  |  |  | 2,594,069 |  |  |  | 2,329,121 |  |  |  | 2,651,402 |  |  | 2,119,995 |
|  | Less: average goodwill and other intangibles, net of def. tax liability |  |  | (1,150,184 | ) |  |  | (1,150,549 | ) |  |  | (1,152,856 | ) |  |  | (1,112,327 | ) |  |  | (997,658 | ) |  |  | (1,141,528 | ) |  | (927,974 | )
|  | Average tangible equity |  | $ | 1,594,752 |  |  | $ | 1,511,964 |  |  | $ | 1,450,082 |  |  | $ | 1,481,742 |  |  | $ | 1,331,463 |  |  | $ | 1,509,874 |  | $ | 1,192,021 |
|  | Return on average tangible equity, excluding certain items (annualized) (1) (2) |  |  | 17.00 | % |  |  | 19.00 | % |  |  | 19.47 | % |  |  | 17.75 | % |  |  | 17.78 | % |  |  | 18.28 | % |  | 19.39 | %
|  | Average tangible common equity |  | $ | 1,450,243 |  |  | $ | 1,431,657 |  |  | $ | 1,450,082 |  |  | $ | 1,481,742 |  |  | $ | 1,331,463 |  |  | $ | 1,453,363 |  | $ | 1,192,021 |
|  | Return on average tangible common equity, excluding provision items (annualized) (1) (2) |  |  | 18.70 | % |  |  | 20.07 | % |  |  | 19.47 | % |  |  | 17.75 | % |  |  | 17.78 | % |  |  | 18.99 | % |  | 19.39 | %

(1) | Certain items excluded from the calculations consist of credit provisions, tax provisions and restructuring and merger-related expenses.

(2) | The ratios are annualized by utilizing actual numbers of days in the quarter versus the year.