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WesBanco Announces Second Quarter 2022 Financial Results

WesBanco Announces Second Quarter 2022 Financial Results
PR Newswire
WHEELING, W.V., July 26, 2022

WHEELING, W.V., July 26, 2022 /PRNewswire/ — WesBanco, Inc. (“WesBanco”) (Nasdaq: WSBC), a diversified, multi-state bank holding company, today anno…

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WesBanco Announces Second Quarter 2022 Financial Results

PR Newswire

WHEELING, W.V., July 26, 2022 /PRNewswire/ -- WesBanco, Inc. ("WesBanco") (Nasdaq: WSBC), a diversified, multi-state bank holding company, today announced net income and related earnings per share for the three months ended June 30, 2022.  Net income available to common shareholders for the second quarter of 2022 was $40.2 million, with diluted earnings per share of $0.67, compared to $68.1 million and $1.01 per diluted share, respectively, for the second quarter of 2021, which included a release of provision for credit losses of $21.0 million, or $16.6 million net of tax, due to improved economic forecasts in the prior year period.  For the six months ended June 30, 2022, net income was $81.8 million, or $1.34 per diluted share, compared to $138.6 million, or $2.06 per diluted share, for the 2021 period, which included a release of provision for credit losses of $49.0 million, or $39.0 million net of tax.  Net income available to common shareholders, excluding after-tax restructuring and merger-related expenses, for the three months ended June 30, 2022, was $40.3 million, or $0.67 per diluted share, as compared to $69.0 million and $1.03 per diluted share, respectively, in the prior year quarter (non-GAAP measures).  On the same basis, net income for the six months ended June 30, 2022 was $83.1 million, or $1.36 per diluted share, as compared to $140.3 million, or $2.09 per diluted share, in the prior year period (non-GAAP measures).




For the Three Months Ended June 30,



For the Six Months Ended June 30,




2022


2021



2022


2021

(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)


$      40,258


$       0.67


$      69,022


$       1.03



$      83,107


$       1.36


$    140,279


$       2.09

Less: After-tax restructuring and merger-related expenses


(41)


-


(965)


(0.02)



(1,300)


(0.02)


(1,638)


(0.03)

Net income available to common shareholders (GAAP)


$      40,217


$       0.67


$      68,057


$       1.01



$      81,807


$       1.34


$    138,641


$       2.06

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

Financial and operational highlights during the quarter ended June 30, 2022:

  • Reflecting the strength of our markets and lending teams, total loan growth was 5.4% sequentially, or 21.8% annualized, and 3.8% year-over-year, when excluding Small Business Administration Payroll Protection Program ("SBA PPP") loans
  • Residential mortgage production of $328 million, which was consistent with production in the year ago period, significantly outperformed industry trends
  • Deposit growth, excluding certificates of deposit ("CDs"), was 5.3% year-over-year, driven by growth in demand deposits and savings accounts
  • Second quarter net interest margin of 3.03% increased 8 basis points sequentially, and, when excluding purchase accounting and SBA PPP loan accretion, it increased 13 basis points sequentially to 2.93%
  • Strong execution, combined with being named both one of America's best employers and most trustworthy companies, has enabled us to exceed our previously announced commercial hiring plan in half the time, as we have hired 24 commercial lenders since January, with 10 of those expected to start during the third quarter
    • In addition, we announced the hiring of Jeffrey Jackson as Senior Executive Vice President and Chief Operating Officer, with the expectation that he will succeed Todd Clossin as President and CEO upon Mr. Clossin's anticipated retirement date of January 1, 2024, allowing for a smooth and successful transition for our employees, customers, and shareholders
  • During the quarter, we continued to return capital to our shareholders as we purchased approximately 1.1 million shares of our common stock on the open market under existing share repurchase authorizations
  • 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 prior four quarters)
  • WesBanco continues to be recognized by its customers for high quality customer service, financial advice, digital services, and trust as it was named multiple times to the Forbes 2022 Best-in-State Banks list as the #1 bank in Ohio and the #2 bank in Kentucky

"We are very pleased with WesBanco's performance during the second quarter of 2022, as we continue to demonstrate the success of our operational strategies implemented the past few years," said Todd F. Clossin, President and Chief Executive Officer of WesBanco.  "We reported strong, broad-based loan growth that was driven by the strength of our teams and their respective markets, as we continued to execute upon our plans of hiring additional revenue-producers across commercial lending, residential lending, and wealth management.  Further, while making strategic, long-term investments, we have maintained our diligent focus on expense management through controlling discretionary costs and managing our financial center footprint.  We believe that the strong foundation we have developed, supported by our unique long-term advantages, position us well for our future opportunities."

Mr. Clossin added, "WesBanco is privileged to have been named one of the top banks in the states of Kentucky and Ohio, which follows our also being recognized by Forbes as the only midsize bank ranked in the top ten of both America's Best Banks for our strong financial performance and Best Midsize Employers for our employee focus.  These top rankings are a strong testament to the outstanding efforts and dedication of our employees, and we are honored to again be recognized by our customers for our trust and service."

Balance Sheet
Loan growth for the second quarter of 2022 reflects strong performance by our commercial and consumer lending teams and efforts to keep more 1-to-4 family residential mortgages on the balance sheet, partially offset by the continuation of both SBA PPP loan forgiveness and elevated commercial real estate payoffs.  As of June 30, 2022, total portfolio loans of $10.2 billion, when excluding SBA PPP loans, driven by strong growth across all loan categories and markets, increased 5.4%, or 21.8% annualized, when compared to March 31, 2022, and increased 3.8% from the prior year period.  This strong sequential quarter loan growth demonstrates the successful execution of our expansion into higher-growth markets, including Kentucky and Maryland, and ability to hire top-tier commercial and mortgage loan officers across our footprint.  The second quarter of 2022 included the forgiveness of approximately 606 SBA PPP loans totaling $50 million (net of deferred fees).  As of June 30, 2022, approximately 480 SBA PPP loans for $27 million remained in the loan portfolio.

As of June 30, 2022, total deposits were $13.6 billion, which increased year-over-year due primarily to increased personal savings, which more than offset a $379.2 million year-over-year reduction in CDs.  Deposits, excluding CDs, increased 5.3% year-over-year, driven by a 4.9% increase in total demand deposits, which represent approximately 59% of total deposits, as well as a 10.5% increase in savings accounts.  Furthermore, non-interest bearing demand deposits represented approximately 35% of total deposits, as of June 30, 2022.

Credit Quality
As of June 30, 2022, total loans past due, non-performing loans, and non-performing assets as percentages of the loan portfolio and total assets have remained relatively low, from a historical perspective, and consistent throughout the last five quarters.  In addition, criticized and classified loans as a percent of the loan portfolio decreased 127 basis points year-over-year to 3.14%.  For the second quarter, net loan charge-offs to average loans were immaterial at zero basis points.  The allowance for credit losses to total portfolio loans at June 30, 2022 was $117.4 million, or 1.15% of total loans.  During the three- and six- month periods ending June 30, 2021, we recorded negative provision for credit losses of $21.0 million and $49.0 million, respectively, due to significantly improved macroeconomic forecasts and other factors during 2021, as compared to negative provisions of $0.8 million and $4.3 million, respectively, in the current year.

Net Interest Margin and Income
The net interest margin of 3.03% for the second quarter of 2022 increased 8 basis points sequentially, which reflects the 125 basis point increase in the federal fund rate during the last 3 months, as well as our successful deployment of excess cash through loan and securities growth.  As a result of increased cash balances from our customers' higher personal savings, investment securities increased by $0.3 billion year-over-year and, as of June 30, 2022, represented approximately 25% of total assets.  We remain focused on controlling the costs of our various funding sources, which is enhanced by the pricing advantage of our robust legacy deposit base.  We have reduced deposit funding costs 4 basis points year-over-year to 13 basis points for the second quarter of 2022, or just 9 basis points when including non-interest bearing deposits.  The cost of total interest-bearing liabilities decreased 5 basis points year-over-year to 26 basis points, or 17 basis points when including non-interest bearing deposits.  Accretion from acquisitions benefited the second quarter net interest margin by 6 basis points, as compared to 12 basis points in the prior year period.  Lastly, the forgiveness of SBA PPP loans benefited the second quarter of 2022 net interest margin by a net 4 basis points, as compared to a net 5 basis points in the prior year period.

Net interest income decreased $3.6 million, or 3.1%, during the second quarter of 2022, as compared to the same quarter of 2021, reflecting lower accretion from purchase accounting and lower SBA PPP-related loan income.  For the six months ended June 30, 2022, net interest income decreased $12.4 million, or 5.3%, primarily due to the reasons discussed for the three-month period comparison.

Non-Interest Income
For the second quarter of 2022, non-interest income of $27.0 million decreased $9.1 million, or 25.3%, from the second quarter of 2021, driven primarily by lower mortgage banking income, which decreased $6.5 million year-over-year, and a net loss on other assets.  Reflective of increased general consumer spending, service charges on deposits increased $1.6 million year-over-year to $6.5 million and electronic banking fees increased slightly to $5.2 million.  While mortgage originations remained strong year-over-year, mortgage banking income was lower due to our continued efforts to retain more residential mortgages on the balance sheet.  We retained 80% of originations during the second quarter of 2022 as compared to 52% last year.  Reflecting the strength of our lending teams and home purchase and construction portfolio, residential mortgage originations during the second quarter totaled $328 million, up 21% from the first quarter and roughly flat to the prior year period.  Net securities losses reflected a $1.2 million loss which is the offset to equity securities in the deferred compensation plan, recorded within employee benefits expense.  The net loss on other assets of $1.3 million reflects the change in the fair value of underlying equity investments held by Wesbanco Community Development Corporation primarily driven by the decline in the equity market, as compared to a net gain of $3.7 million for the same investment in the prior year period.

Primarily reflecting the items discussed above, as well as lower loan swap-related income, which is recorded in other income, non-interest income, for the six months ended June 30, 2022, decreased $12.0 million, or 17.2%.  In addition, bank-owned life insurance of $6.3 million increased $2.8 million year-over-year due to higher death benefits and the impact of new policies purchased during the third quarter of 2021.

Non-Interest Expense
Excluding restructuring and merger-related expenses, non-interest expense for the three months ended June 30, 2022 totaled $87.0 million, a 5.3% year-over-year increase and a 1.2% increase from the first quarter of this year.  Salaries and wages increased $3.8 million, or 10.1%, compared to the prior year period due to higher salary expense related to normal merit increases and the hourly wage increase that we implemented last year, lower deferred loan origination costs, and higher bonus and stock option accruals.  Employee benefits included a $1.2 million credit related to the deferred compensation plan.  FDIC insurance of $1.9 million increased $1.8 million from last year due primarily to certain prior period reporting adjustments resulting in a $1.0 million refund and improved risk factors recorded in the prior year period.  Equipment and software expense for the second quarter of 2022 increased $0.4 million, or 5.8% year-over-year due primarily to the movement of online banking costs from other operating expenses.  Other operating expenses decreased $1.4 million, or 7.9%, due to the aforementioned move of online banking costs, as well as a reduction in ACH and ATM processing charges related to a change in providers, in conjunction with last summer's core banking software system conversion, as well as lower legal costs associated with the resolution of a lawsuit in the prior year period.

On a similar basis, non-interest expense during the first half of 2022 increased $4.9 million, or 2.9%, compared to the prior year period, due primarily to higher salaries and wages and higher FDIC insurance, as described above, partially offset by lower employee benefits from lower deferred compensation expense and discretionary cost control.

Capital
WesBanco continues to maintain what we believe are strong regulatory capital ratios, 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 June 30, 2022, Tier I leverage was 9.51%, Tier I risk-based capital ratio was 12.49%, common equity Tier 1 capital ratio ("CET 1") was 11.31%, and total risk-based capital was 15.40%.

During the second quarter of 2022, WesBanco repurchased 1.1 million shares of its outstanding common stock on the open market at a total cost of $35.8 million, or $33.28 per share.  As of June 30, 2022, approximately 1.8 million shares remained for repurchase under the existing share repurchase authorization that was approved on February 24, 2022, by WesBanco's Board of Directors.

Conference Call and Webcast
WesBanco will host a conference call to discuss the Company's financial results for the second quarter of 2022 at 10:00 a.m. ET on Wednesday, July 27, 2022.  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.  Please log in or dial in at least 10 minutes prior to the start time to ensure a connection.

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 10162208.  The replay will begin at approximately 12:00 p.m. ET on July 27, 2022 and end at 12 a.m. ET on August 10, 2022.  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, 2021 and documents subsequently filed by WesBanco with the Securities and Exchange Commission ("SEC"), including WesBanco's Form 10-Q for the quarter ended March 31, 2022, 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.  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 Consumer Financial Protection Bureau, 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.  Furthermore, our strong financial performance and employee focus has earned us recognition by Forbes as both one of America's Best Banks and Best Midsize Employers – the only midsize bank making the top ten of both rankings.  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 $4.8 billion of assets under management (as of June 30, 2022).  WesBanco's banking subsidiary, WesBanco Bank, Inc., operates 194 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.

 

WESBANCO, INC.












Consolidated Selected Financial Highlights











Page 5

(unaudited, dollars in thousands, except shares and per share amounts)































For the Three Months Ended


For the Six Months Ended

Statement of Income

June 30,


June 30,

Interest and dividend income

2022


2021


% Change


2022


2021


% Change


Loans, including fees

$       96,412


$     105,968


(9.0)


$    189,532


$     215,327


(12.0)


Interest and dividends on securities:














Taxable 

15,825


12,900


22.7


29,937


24,027


24.6



Tax-exempt

4,706


3,952


19.1


9,049


7,862


15.1




Total interest and dividends on securities

20,531


16,852


21.8


38,986


31,889


22.3


Other interest income 

1,504


507


196.6


2,103


1,166


80.4

          Total interest and dividend income

118,447


123,327


(4.0)


230,621


248,382


(7.2)

Interest expense













Interest bearing demand deposits

1,153


1,009


14.3


1,965


2,052


(4.2)


Money market deposits

383


551


(30.5)


704


1,130


(37.7)


Savings deposits

330


261


26.4


595


525


13.3


Certificates of deposit

1,116


2,026


(44.9)


2,389


4,396


(45.7)




Total interest expense on deposits

2,982


3,847


(22.5)


5,653


8,103


(30.2)


Federal Home Loan Bank borrowings

411


1,781


(76.9)


986


4,195


(76.5)


Other short-term borrowings

48


40


20.0


96


159


(39.6)


Subordinated debt and junior subordinated debt 

2,778


1,804


54.0


3,948


3,593


9.9




Total interest expense

6,219


7,472


(16.8)


10,683


16,050


(33.4)

Net interest income 

112,228


115,855


(3.1)


219,938


232,332


(5.3)


Provision for credit losses

(812)


(21,025)


96.1


(4,250)


(48,984)


91.3

Net interest income after provision for credit losses

113,040


136,880


(17.4)


224,188


281,316


(20.3)

Non-interest income













Trust fees

6,527


7,148


(8.7)


14,362


14,780


(2.8)


Service charges on deposits

6,487


4,876


33.0


12,577


9,770


28.7


Electronic banking fees

5,154


5,060


1.9


10,499


9,426


11.4


Net securities brokerage revenue

2,258


1,829


23.5


4,478


3,352


33.6


Bank-owned life insurance

2,384


1,707


39.7


6,264


3,416


83.4


Mortgage banking income

1,328


7,830


(83.0)


3,251


12,094


(73.1)


Net securities (losses)/gains

(1,183)


477


(348.0)


(1,832)


756


(342.3)


Net (loss)/gain on other real estate owned and other assets

(1,302)


4,014


(132.4)


(2,108)


4,189


(150.3)


Other income

5,330


3,171


68.1


9,874


11,537


(14.4)




Total non-interest income

26,983


36,112


(25.3)


57,365


69,320


(17.2)

Non-interest expense













Salaries and wages

41,213


37,435


10.1


80,150


74,324


7.8


Employee benefits

8,722


9,268


(5.9)


17,880


19,534


(8.5)


Net occupancy

6,119


6,427


(4.8)


13,354


13,605


(1.8)


Equipment and software

7,702


7,281


5.8


15,713


14,045


11.9


Marketing

2,749


1,802


52.6


5,170


4,185


23.5


FDIC insurance 

1,937


181


970.2


3,459


1,462


136.6


Amortization of intangible assets

2,579


2,873


(10.2)


5,178


5,769


(10.2)


Restructuring and merger-related expense

52


1,222


(95.7)


1,646


2,074


(20.6)


Other operating expenses  

15,946


17,323


(7.9)


32,019


35,141


(8.9)




Total non-interest expense

87,019


83,812


3.8


174,569


170,139


2.6

Income before provision for income taxes

53,004


89,180


(40.6)


106,984


180,497


(40.7)


Provision for income taxes 

10,256


18,592


(44.8)


20,114


36,793


(45.3)

Net Income

42,748


70,588


(39.4)


86,870


143,704


(39.5)

Preferred stock dividends

2,531


2,531


-


5,063


5,063


-

Net income available to common shareholders

$       40,217


$       68,057


(40.9)


$       81,807


$     138,641


(41.0)































Taxable equivalent net interest income

$    113,479


$  116,906


(2.9)


$    222,343


$  234,423


(5.2)
















Per common share data












Net income per common share - basic

$           0.67


$           1.02


(34.3)


$           1.35


$           2.07


(34.8)

Net income per common share - diluted

0.67


1.01


(33.7)


1.34


2.06


(35.0)

Net income per common share - diluted, excluding certain items (1)(2)

0.67


1.03


(35.0)


1.36


2.09


(34.9)

Dividends declared

0.34


0.33


3.0


0.68


0.66


3.0

Book value (period end)

38.92


39.96


(2.6)


38.92


39.96


(2.6)

Tangible book value (period end) (1)

19.89


22.61


(12.0)


19.89


22.61


(12.0)

Average common shares outstanding - basic

60,036,103


66,894,398


(10.3)


60,736,858


67,078,036


(9.5)

Average common shares outstanding - diluted

60,185,207


67,066,592


(10.3)


60,899,270


67,239,548


(9.4)

Period end common shares outstanding

59,698,788


65,970,149


(9.5)


59,698,788


65,970,149


(9.5)

Period end preferred shares outstanding

150,000


150,000


-


150,000


150,000


-
















(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















Page 6

(unaudited, dollars in thousands)



































Selected ratios
























For the Six Months Ended










June 30,










2022


2021


% Change


























Return on average assets





0.97

%

1.66

%

(41.57)

%







Return on average assets, excluding
















    after-tax restructuring and merger-related expenses (1)



0.99


1.68


(41.07)








Return on average equity





6.39


10.04


(36.35)








Return on average equity, excluding
















    after-tax restructuring and merger-related expenses (1)



6.49


10.15


(36.06)








Return on average tangible equity (1)




12.00


17.62


(31.90)








Return on average tangible equity, excluding 
















    after-tax restructuring and merger-related expenses (1)



12.18


17.82


(31.65)








Return on average tangible common equity (1)




13.33


19.32


(31.00)








Return on average tangible common equity, excluding 















    after-tax restructuring and merger-related expenses (1)



13.53


19.54


(30.76)








Yield on earning assets (2) 





3.14


3.41


(7.92)








Cost of interest bearing liabilities





0.23


0.34


(32.35)








Net interest spread (2)






2.91


3.07


(5.21)








Net interest margin (2)






2.99


3.19


(6.27)








Efficiency (1) (2)






61.82


55.33


11.73








Average loans to average deposits





71.71


82.47


(13.05)








Annualized net loan charge-offs/average loans




0.00


0.00


-








Effective income tax rate 





18.80


20.38


(7.75)






















































































For the Three Months Ended










June 30,


Mar. 31,


Dec. 31,


Sept. 30,


June 30,










2022


2022


2021


2021


2021






















Return on average assets





0.95

%

0.99

%

1.21

%

0.97

%

1.60

%



Return on average assets, excluding
















    after-tax restructuring and merger-related expenses (1)



0.95


1.02


1.21


1.06


1.62




Return on average equity





6.43


6.35


7.56


5.98


9.74




Return on average equity, excluding
















    after-tax restructuring and merger-related expenses (1)



6.43


6.54


7.58


6.49


9.88




Return on average tangible equity (1)




12.35


11.67


13.62


10.72


17.04




Return on average tangible equity, excluding 
















    after-tax restructuring and merger-related expenses (1)



12.36


12.01


13.66


11.57


17.27




Return on average tangible common equity (1)




13.80


12.90


15.00


11.76


18.67




Return on average tangible common equity, excluding 















    after-tax restructuring and merger-related expenses (1)



13.82


13.27


15.04


12.70


18.92




Yield on earning assets (2) 





3.20


3.07


3.10


3.24


3.32




Cost of interest bearing liabilities





0.26


0.19


0.20


0.25


0.31




Net interest spread (2)






2.94


2.88


2.90


2.99


3.01




Net interest margin (2)






3.03


2.95


2.97


3.08


3.12




Efficiency (1) (2) 






61.91


61.73


61.99


60.52


53.97




Average loans to average deposits





72.36


71.05


72.61


75.46


79.82




Annualized net loan charge-offs and recoveries /average loans

0.00


0.00


0.04


0.03


(0.03)




Effective income tax rate 





19.35


18.26


18.32


19.34


20.85




Trust assets, market value at period end




$ 4,803,043


$ 5,412,342


$ 5,644,975


$ 5,464,159


$ 5,480,995






















(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








Page 7

(unaudited, dollars in thousands, except shares)








% Change

Balance sheet


June 30,



December 31,

December 31, 2021

Assets




2022


2021


% Change

2021

to June 30, 2022

Cash and due from banks


$       186,534


$      208,992


(10.7)

$          157,046

18.8

Due from banks - interest bearing


263,475


637,312


(58.7)

1,094,312

(75.9)

Securities:











Equity securities, at fair value


11,413


13,494


(15.4)

13,466

(15.2)


Available-for-sale debt securities, at fair value


2,884,651


2,964,264


(2.7)

3,013,462

(4.3)


Held-to-maturity debt securities (fair values of $1,153,594; $934,487










and $1,028,452, respectively)


1,281,295


902,172


42.0

1,004,823

27.5



Allowance for credit losses, held-to-maturity debt securities


(265)


(227)


(16.7)

(268)

1.1


Net held-to-maturity debt securities


1,281,030


901,945


42.0

1,004,555

27.5



Total securities


4,177,094


3,879,703


7.7

4,031,483

3.6

Loans held for sale


17,560


41,461


(57.6)

25,277

(30.5)

Portfolio loans:










Commercial real estate


5,852,564


5,705,246


2.6

5,538,968

5.7


Commercial and industrial


1,549,768


2,119,186


(26.9)

1,590,320

(2.5)


Residential real estate 


1,907,875


1,625,632


17.4

1,721,378

10.8


Home equity


597,845


631,059


(5.3)

605,682

(1.3)


Consumer 


300,637


276,069


8.9

277,130

8.5

Total portfolio loans, net of unearned income


10,208,689


10,357,192


(1.4)

9,733,478

4.9

Allowance for credit losses - loans 


(117,403)


(140,730)


16.6

(121,622)

3.5



Net portfolio loans


10,091,286


10,216,462


(1.2)

9,611,856

5.0

Premises and equipment, net


216,293


235,227


(8.0)

229,016

(5.6)

Accrued interest receivable


61,918


64,020


(3.3)

60,844

1.8

Goodwill and other intangible assets, net


1,146,456


1,157,322


(0.9)

1,151,634

(0.4)

Bank-owned life insurance


348,807


309,454


12.7

350,359

(0.4)

Other assets


290,201


216,914


33.8

215,298

34.8

Total Assets


$ 16,799,624


$ 16,966,867


(1.0)

$     16,927,125

(0.8)













Liabilities










Deposits:











Non-interest bearing demand


$   4,738,830


$   4,409,221


7.5

$       4,590,895

3.2


Interest bearing demand


3,258,871


3,214,484


1.4

3,380,056

(3.6)


Money market


1,770,859


1,771,686


(0.0)

1,739,750

1.8


Savings deposits


2,695,437


2,438,328


10.5

2,562,510

5.2


Certificates of deposit


1,105,305


1,484,536


(25.5)

1,292,652

(14.5)



Total deposits


13,569,302


13,318,255


1.9

13,565,863

0.0

Federal Home Loan Bank borrowings


122,650


313,960


(60.9)

183,920

(33.3)

Other short-term borrowings


147,964


135,267


9.4

141,893

4.3

Subordinated debt and junior subordinated debt 


280,910


192,571


45.9

132,860

111.4



Total borrowings


551,524


641,798


(14.1)

458,673

20.2

Accrued interest payable


2,815


3,342


(15.8)

1,901

48.1

Other liabilities


208,032


222,636


(6.6)

207,522

0.2

Total Liabilities


14,331,673


14,186,031


1.0

14,233,959

0.7













Shareholders' Equity









Preferred stock, no par value; 1,000,000 shares authorized; 150,000 shares










6.75% non-cumulative perpetual preferred stock, Series A, liquidation










preference $150.0 million, issued and outstanding, respectively


144,484


144,484


-

144,484

-

Common stock, $2.0833 par value; 100,000,000 shares authorized;










68,081,306 shares issued; 59,698,788, 65,970,149 and 62,307,245










shares outstanding, respectively


141,834


141,834


-

141,834

-

Capital surplus


1,632,617


1,632,460


0.0

1,635,642

(0.2)

Retained earnings


1,018,209


925,977


10.0

977,765

4.1

Treasury stock (8,382,518, 2,111,157 and 5,774,061 shares - at cost, respectively)


(291,337)


(74,996)


(288.5)

(199,759)

(45.8)

Accumulated other comprehensive (loss)/income


(176,061)


12,586


 NM 

(5,120)

 NM 

Deferred benefits for directors


(1,795)


(1,509)


(19.0)

(1,680)

(6.8)

Total Shareholders' Equity


2,467,951


2,780,836


(11.3)

2,693,166

(8.4)

Total Liabilities and Shareholders' Equity


$ 16,799,624


$ 16,966,867


(1.0)

$     16,927,125

(0.8)













NM = Not Meaningful









 

 

WESBANCO, INC.






Consolidated Selected Financial Highlights





Page 8

(unaudited, dollars in thousands, except shares)






Balance sheet


June 30,

March 31,


Assets




2022


2022

% Change

Cash and due from banks


$       186,534


$      200,513

(7.0)

Due from banks - interest bearing


263,475


1,168,985

(77.5)

Securities:








Equity securities, at fair value


11,413


12,757

(10.5)


Available-for-sale, at fair value


2,884,651


2,911,373

(0.9)


Held-to-maturity (fair values of $1,153,594 and $1,092,993, respectively)


1,281,295


1,157,202

10.7



Allowance for credit losses, held-to-maturity debt securities


(265)


(285)

7.0


Net held-to-maturity debt securities


1,281,030


1,156,917

7.0



Total securities


4,177,094


4,081,047

10.7

Loans held for sale


17,560


15,959

2.4

Portfolio Loans:







Commercial real estate


5,852,564


5,580,082

4.9


Commercial and industrial


1,549,768


1,513,078

2.4


Residential real estate 


1,907,875


1,767,064

8.0


Home equity


597,845


592,872

0.8


Consumer 


300,637


280,176

7.3

Total portfolio loans, net of unearned income


10,208,689


9,733,272

4.9

Allowance for credit losses - loans


(117,403)


(117,865)

0.4


Net portfolio loans


10,091,286


9,615,407

4.9

Premises and equipment, net


216,293


219,907

(1.6)

Accrued interest receivable


61,918


60,370

2.6

Goodwill and other intangible assets, net


1,146,456


1,149,035

(0.2)

Bank-owned life insurance


348,807


348,179

0.2

Other assets


290,201


244,613

18.6

Total Assets


$ 16,799,624


$ 17,104,015

(1.8)










Liabilities







Deposits:








Non-interest bearing demand


$   4,738,830


$   4,670,520

1.5


Interest bearing demand


3,258,871


3,405,610

(4.3)


Money market


1,770,859


1,831,683

(3.3)


Savings deposits


2,695,437


2,679,053

0.6


Certificates of deposit


1,105,305


1,211,008

(8.7)



Total deposits


13,569,302


13,797,874

(1.7)

Federal Home Loan Bank borrowings


122,650


123,898

(1.0)

Other short-term borrowings


147,964


158,538

(6.7)

Subordinated debt and junior subordinated debt 


280,910


280,743

0.1



Total borrowings


551,524


563,179

(2.1)

Accrued interest payable


2,815


1,786

57.6

Other liabilities


208,032


193,860

7.3

Total liabilities


14,331,673


14,556,699

(1.5)










Shareholders' Equity






Preferred stock, no par value; 1,000,000 shares authorized; 







150,000 shares 6.75% non-cumulative perpetual preferred stock, Series A, 







liquidation preference $150.0 million, issued and outstanding,







respectively


144,484


144,484

-

Common stock, $2.0833 par value; 100,000,000 shares authorized;







68,081,306 shares issued;







59,698,788 and 60,613,414 shares outstanding, respectively


141,834


141,834

-

Capital surplus


1,632,617


1,636,705

(0.2)

Retained earnings


1,018,209


998,315

2.0

Treasury stock (8,382,518 and 7,467,892 shares - at cost)


(291,337)


(261,012)

(11.6)

Accumulated other comprehensive loss


(176,061)


(111,312)

(58.2)

Deferred benefits for directors


(1,795)


(1,698)

(5.7)

Total Shareholders' Equity


2,467,951


2,547,316

(3.1)

Total Liabilities and Shareholders' Equity


$ 16,799,624


$ 17,104,015

(1.8)

 

 

WESBANCO, INC.




















Consolidated Selected Financial Highlights
















Page 9

(unaudited, dollars in thousands)



















Average balance sheet and



















net interest margin analysis




For the Three Months Ended June 30,




For the Six Months Ended June 30,








2022

2021



2022

2021







Average 

Average



Average 

Average



Average 

Average



Average 

Average


Assets





Balance

Rate



Balance

Rate



Balance

Rate



Balance

Rate


Due from banks - interest bearing




$       744,261

0.74

%


$      696,967

0.09

%


$       951,588

0.39

%


$      736,387

0.09

%

Loans, net of unearned income (1)




9,932,744

3.89



10,641,970

3.99



9,823,024

3.89



10,765,483

4.03


Securities: (2)




















    Taxable





3,532,624

1.80



3,042,009

1.70



3,433,551

1.76



2,676,198

1.81


    Tax-exempt (3)





792,878

3.01



599,980

3.34



761,304

3.03



590,144

3.40


        Total securities





4,325,502

2.02



3,641,989

1.97



4,194,855

1.99



3,266,342

2.10


Other earning assets 





13,296

3.82



28,702

4.95



14,365

3.81



30,958

5.45


         Total earning assets (3)




15,015,803

3.20

%


15,009,628

3.32

%


14,983,832

3.14

%


14,799,170

3.41

%

Other assets





1,955,649




2,032,519




1,998,126




2,041,154



Total Assets





$ 16,971,452




$ 17,042,147




$ 16,981,958




$ 16,840,324























Liabilities and Shareholders' Equity


















Interest bearing demand deposits




$   3,380,684

0.14

%


$   3,147,915

0.13

%


$   3,392,029

0.12

%


$   3,059,830

0.14

%

Money market accounts 




1,770,342

0.09



1,774,556

0.12



1,788,430

0.08



1,750,194

0.13


Savings deposits





2,700,642

0.05



2,414,824

0.04



2,664,005

0.05



2,353,083

0.04


Certificates of deposit





1,162,392

0.39



1,519,590

0.53



1,208,243

0.40



1,551,692

0.57


    Total interest bearing deposits




9,014,060

0.13



8,856,885

0.17



9,052,707

0.13



8,714,799

0.19


Federal Home Loan Bank borrowings



123,474

1.34



390,020

1.83



151,593

1.31



438,932

1.93


Repurchase agreements




146,119

0.13



130,171

0.12



151,115

0.13



160,753

0.20


Subordinated debt and junior subordinated debt 

280,962

3.97



192,483

3.76



214,704

3.71



192,412

3.77


      Total interest bearing liabilities (4)



9,564,615

0.26

%


9,569,559

0.31

%


9,570,119

0.23

%


9,506,896

0.34

%

Non-interest bearing demand deposits



4,712,466




4,474,784




4,644,982




4,338,546



Other liabilities





184,932




196,349




184,600




208,861



Shareholders' equity





2,509,439




2,801,455




2,582,257




2,786,021



Total Liabilities and Shareholders' Equity



$ 16,971,452




$ 17,042,147




$ 16,981,958




$ 16,840,324



Taxable equivalent net interest spread




2.94

%



3.01

%



2.91

%



3.07

%

Taxable equivalent net interest margin 




3.03

%



3.12

%



2.99

%



3.19

%









































(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 $2.5 million and $6.5 million for the three months ended June 30, 2022 and 2021, respectively, and were $6.6 million and $14.7 million for the six months ended June 30, 2022 and 2021, respectively.  As part of loan fees, PPP loan fees were $1.9 million and $6.0 million for the three months ended June 30, 2022 and 2021, respectively, and $5.1 million and $13.9 million for the six months ended June 30, 2022 and 2021, respectively.  Additionally, loan accretion included in interest income on loans acquired from prior acquisitions was $1.9 million and $3.8 million for the three months ended June 30, 2022 and 2021, respectively, and $4.5 million and $7.3 million for the six months ended June 30, 2022 and 2021, 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.

(4) Accretion on interest bearing liabilities acquired from prior acquisitions was $0.3 million and $0.8 million for the three months ended June 30, 2022 and 2021, respectively, and $0.8 million and $1.9 million for the six months ended June 30, 2022 and 2021, respectively.

 

WESBANCO, INC.










Consolidated Selected Financial Highlights









 Page 10 

(unaudited, dollars in thousands, except shares and per share amounts)













Quarter Ended

Statement of Income

June 30,


Mar. 31,


Dec. 31,


Sept. 30,


June 30,

Interest and dividend income

2022


2022


2021


2021


2021


Loans, including fees

$     96,412


$       93,121


$       97,432


$     103,206


$     105,968


Interest and dividends on securities:












Taxable 

15,825


14,112


12,934


13,481


12,900



Tax-exempt

4,706


4,344


4,236


4,063


3,952




Total interest and dividends on securities

20,531


18,456


17,170


17,544


16,852


Other interest income 

1,504


597


605


628


507

          Total interest and dividend income

118,447


112,174


115,207


121,378


123,327

Interest expense











Interest bearing demand deposits

1,153


811


810


815


1,009


Money market deposits

383


321


315


350


551


Savings deposits

330


264


261


244


261


Certificates of deposit

1,116


1,273


1,501


1,726


2,026




Total interest expense on deposits

2,982


2,669


2,887


3,135


3,847


Federal Home Loan Bank borrowings

411


575


780


1,192


1,781


Other short-term borrowings

48


48


35


33


40


Subordinated debt and junior subordinated debt

2,778


1,171


1,178


1,743


1,804




Total interest expense

6,219


4,463


4,880


6,103


7,472

Net interest income 

112,228


107,711


110,327


115,275


115,855


Provision for credit losses

(812)


(3,438)


(13,559)


(1,730)


(21,025)

Net interest income after provision for credit losses

113,040


111,149


123,886


117,005


136,880

Non-interest income











Trust fees

6,527


7,835


7,441


7,289


7,148


Service charges on deposits

6,487


6,090


6,592


6,050


4,876


Electronic banking fees

5,154


5,345


4,465


5,427


5,060


Net securities brokerage revenue

2,258


2,220


1,579


1,965


1,829


Bank-owned life insurance

2,384


3,881


2,864


2,656


1,707


Mortgage banking income

1,328


1,923


2,872


4,563


7,830


Net securities (losses)/gains

(1,183)


(650)


372


(15)


477


Net (loss)/gain on other real estate owned and other assets

(1,302)


(806)


(158)


785


4,014


Other income

5,330


4,544


4,682


4,035


3,171




Total non-interest income

26,983


30,382


30,709


32,755


36,112

Non-interest expense











Salaries and wages

41,213


38,937


40,420


39,497


37,435


Employee benefits

8,722


9,158


10,842


10,658


9,268


Net occupancy

6,119


7,234


6,413


6,825


6,427


Equipment and software

7,702


8,011


8,352


7,609


7,281


Marketing

2,749


2,421


2,601


1,848


1,802


FDIC insurance 

1,937


1,522


1,460


1,227


181


Amortization of intangible assets

2,579


2,598


2,834


2,854


2,873


Restructuring and merger-related expense

52


1,593


177


4,467


1,222


Other operating expenses  

15,946


16,074


15,204


19,716


17,323




Total non-interest expense

87,019


87,548


88,303


94,701


83,812

Income before provision for income taxes

53,004


53,983


66,292


55,059


89,180


Provision for income taxes 

10,256


9,859


12,144


10,651


18,592

Net Income

42,748


44,124


54,148


44,408


70,588

Preferred stock dividends

2,531


2,531


2,531


2,531


2,531

Net income available to common shareholders

$     40,217


$       41,593


$       51,617


$       41,877


$       68,057














Taxable equivalent net interest income

$  113,479


$  108,866


$  111,453


$  116,355


$  116,906














Per common share data










Net income per common share - basic

$          0.67


$           0.68


$           0.82


$           0.64


$           1.02

Net income per common share - diluted

0.67


0.68


0.82


0.64


1.01

Net income per common share - diluted, excluding certain items (1)(2)

0.67


0.70


0.82


0.70


1.03

Dividends declared

0.34


0.34


0.33


0.33


0.33

Book value (period end)

38.92


39.64


40.91


40.41


39.96

Tangible book value (period end) (1)

19.89


20.87


22.61


22.51


22.61

Average common shares outstanding - basic

60,036,103


61,445,399


63,045,061


64,931,764


66,894,398

Average common shares outstanding - diluted

60,185,207


61,593,365


63,183,411


65,065,848


67,066,592

Period end common shares outstanding

59,698,788


60,613,414


62,307,245


63,838,549


65,970,149

Period end preferred shares outstanding

150,000


150,000


150,000


150,000


150,000

Full time equivalent employees

2,509


2,456


2,462


2,425


2,459














(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










 Page 11 

(unaudited, dollars in thousands)
















Quarter Ended






June 30,


Mar. 31,


Dec. 31,


Sept. 30,


June 30,


Asset quality data


2022


2022


2021


2021


2021


Non-performing assets:













Troubled debt restructurings - accruing

$      3,579


$     3,731


$     3,746


$     3,707


$     5,799



Non-accrual loans:














Troubled debt restructurings


2,120


1,348


1,547


1,615


1,664




Other non-accrual loans


29,594


32,024


34,195


34,644


34,548




    Total non-accrual loans


31,714


33,372


35,742


36,259


36,212




    Total non-performing loans 


35,293


37,103


39,488


39,966


42,011



Other real estate and repossessed assets

31


87


-


293


773




Total non-performing assets


$   35,324


$   37,190


$   39,488


$   40,259


$   42,784
















Past due loans (1):













Loans past due 30-89 days


$   31,388


$   28,322


$   27,152


$   32,682


$   21,233



Loans past due 90 days or more


9,560


6,142


7,804


11,252


8,318




Total past due loans


$   40,948


$   34,464


$   34,956


$   43,934


$   29,551
















Criticized and classified loans (2):













Criticized loans


$ 193,871


$ 234,143


$ 248,518


$ 290,281


$ 319,448



Classified loans


126,257


123,837


116,013


127,022


136,927




Total criticized and classified loans

$ 320,128


$ 357,980


$ 364,531


$ 417,303


$ 456,375
















Loans past due 30-89 days / total portfolio loans (3)

0.31

%

0.29

%

0.28

%

0.33

%

0.21

%

Loans past due 90 days or more / total portfolio loans

0.09


0.06


0.08


0.11


0.08


Non-performing loans / total portfolio loans

0.35


0.38


0.41


0.40


0.41


Non-performing assets / total portfolio loans, other












real estate and repossessed assets


0.35


0.38


0.41


0.41


0.41


Non-performing assets / total assets


0.21


0.22


0.23


0.24


0.25


Criticized and classified loans / total portfolio loans

3.14


3.68


3.75


4.21


4.41
















Allowance for credit losses












Allowance for credit losses - loans


$ 117,403


$ 117,865


$ 121,622


$ 136,605


$ 140,730


Allowance for credit losses - loan commitments

7,718


8,050


7,775


7,290


5,766


Provision for credit losses


(812)


(3,438)


(13,559)


(1,730)


(21,025)


Net loan and deposit account overdraft charge-offs and recoveries

2


27


929


842


(689)
















Annualized net loan charge-offs and recoveries / average loans

0.00

%

0.00

%

0.04

%

0.03

%

(0.03)

%

Allowance for credit losses - loans / total portfolio loans

1.15

%

1.21

%

1.25

%

1.38

%

1.36

%

Allowance for credit losses - loans / total portfolio loans excluding PPP loans

1.15

%

1.22

%

1.27

%

1.42

%

1.43

%

Allowance for credit losses - loans / non-performing loans

3.33

x

3.18

x

3.08

x

3.42

x

3.35

x

Allowance for credit losses - loans / non-performing loans and












loans past due 


1.54

x

1.65

x

1.63

x

1.63

x

1.97

x















































June 30,


Mar. 31,


Dec. 31,


Sept. 30,


June 30,






2022


2022


2021


2021


2021


Capital ratios












Tier I leverage capital


9.51

%

9.67

%

10.02

%

10.10

%

10.42

%

Tier I risk-based capital


12.49


13.25


14.05


14.18


15.15


Total risk-based capital


15.40


16.32


15.91


16.38


17.68


Common equity tier 1 capital ratio (CET 1)

11.31


12.01


12.77


12.91


13.83


Average shareholders' equity to average assets

14.79


15.63


15.99


16.28


16.44


Tangible equity to tangible assets (4)


8.50


8.83


9.84


10.04


10.34


Tangible common equity to tangible assets (4)

7.58


7.92


8.92


9.12


9.43






























(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 $26.7 million of PPP loans as of June 30, 2022.




(4) See non-GAAP financial measures for additional information relating to the calculation of this ratio.




 

 

WESBANCO, INC.














Non-GAAP Financial Measures












Page 12

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 





June 30,


Mar. 31,


Dec. 31,


Sept. 30,


June 30,


June 30,

(unaudited, dollars in thousands, except shares and per share amounts)

2022


2022


2021


2021


2021


2022

2021

Return on average assets, excluding after-tax restructuring and merger-related expenses:














Net income available to common shareholders

$         40,217


$        41,593


$        51,617


$        41,877


$        68,057


$         81,807

$      138,641


Plus: after-tax restructuring and merger-related expenses  (1)

41


1,258


140


3,529


965


1,300

1,638


Net income available to common shareholders excluding after-tax restructuring and merger-related expenses

40,258


42,851


51,757


45,406


69,022


83,107

140,279


















Average total assets


$ 16,971,452


$ 16,992,598


$ 16,947,662


$ 17,057,793


$ 17,042,147


$ 16,981,958

$ 16,840,324

















Return on average assets, excluding after-tax restructuring and merger-related expenses (annualized)  (2)

0.95 %


1.02 %


1.21 %


1.06 %


1.62 %


0.99 %

1.68 %

















Return on average equity, excluding after-tax restructuring and merger-related expenses:














Net income available to common shareholders

$         40,217


$        41,593


$        51,617


$        41,877


$        68,057


$         81,807

$      138,641


Plus: after-tax restructuring and merger-related expenses  (1)

41


1,258


140


3,529


965


1,300

1,638


Net income available to common shareholders excluding after-tax restructuring and merger-related expenses 

40,258


42,851


51,757


45,406


69,022


83,107

140,279


















Average total shareholders' equity

$   2,509,439


$   2,655,807


$   2,709,782


$   2,777,306


$   2,801,455


$   2,582,257

$   2,786,021

















Return on average equity, excluding after-tax  restructuring and merger-related expenses (annualized)  (2)

6.43 %


6.54 %


7.58 %


6.49 %


9.88 %


6.49 %

10.15 %

















Return on average tangible equity:














Net income available to common shareholders

$         40,217


$        41,593


$        51,617


$        41,877


$        68,057


$         81,807

$      138,641


Plus: amortization of intangibles (1)

2,037


2,052


2,239


2,255


2,270


4,091

4,558


Net income available to common shareholders before amortization of intangibles 

42,254


43,645


53,856


44,132


70,327


85,898

143,199


















Average total shareholders' equity

2,509,439


2,655,807


2,709,782


2,777,306


2,801,455


2,582,257

2,786,021


Less: average goodwill and other intangibles, net of def. tax liability

(1,137,187)


(1,139,242)


(1,141,307)


(1,143,522)


(1,145,882)


(1,138,209)

(1,147,020)


Average tangible equity

$   1,372,252


$   1,516,565


$   1,568,475


$   1,633,784


$   1,655,573


$   1,444,048

$   1,639,001

















Return on average tangible equity (annualized)  (2)

12.35 %


11.67 %


13.62 %


10.72 %


17.04 %


12.00 %

17.62 %


















Average tangible common equity

$   1,227,768


$   1,372,081


$   1,423,991


$   1,489,300


$   1,511,089


$   1,299,564

$   1,494,517

Return on average tangible common equity (annualized)  (2)

13.80 %


12.90 %


15.00 %


11.76 %


18.67 %


13.33 %

19.32 %

















Return on average tangible equity, excluding after-tax restructuring and merger-related expenses:














Net income available to common shareholders

$         40,217


$        41,593


$        51,617


$        41,877


$        68,057


$         81,807

$      138,641


Plus: after-tax restructuring and merger-related expenses  (1)

41


1,258


140


3,529


965


1,300

1,638


Plus: amortization of intangibles  (1)

2,037


2,052


2,239


2,255


2,270


4,091

4,558


Net income available to common shareholders before amortization of intangibles 














     and excluding after-tax restructuring and merger-related expenses

42,295


44,903


53,996


47,661


71,292


87,198

144,837


















Average total shareholders' equity

2,509,439


2,655,807


2,709,782


2,777,306


2,801,455


2,582,257

2,786,021


Less: average goodwill and other intangibles, net of def. tax liability

(1,137,187)


(1,139,242)


(1,141,307)


(1,143,522)


(1,145,882)


(1,138,209)

(1,147,020)


Average tangible equity

$   1,372,252


$   1,516,565


$   1,568,475


$   1,633,784


$   1,655,573


$   1,444,048

$   1,639,001

















Return on average tangible equity, excluding after-tax  restructuring and merger-related expenses (annualized)  (2)

12.36 %


12.01 %


13.66 %


11.57 %


17.27 %


12.18 %

17.82 %


















Average tangible common equity

$   1,227,768


$   1,372,081


$   1,423,991


$   1,489,300


$   1,511,089


$   1,299,564

$   1,494,517

Return on average tangible common equity, excluding after-tax restructuring and merger-related expenses (annualized)  (2)

13.82 %


13.27 %


15.04 %


12.70 %


18.92 %


13.53 %

19.54 %

















Efficiency ratio:
















Non-interest expense


$         87,019


$        87,548


$        88,303


$        94,701


$        83,812


$       174,569

$      170,139


Less: restructuring and merger-related expense

(52)


(1,593)


(177)


(4,467)


(1,222)


(1,646)

(2,074)


Non-interest expense excluding restructuring and merger-related expense

86,967


85,955


88,126


90,234


82,590


172,923

168,065


















Net interest income on a fully taxable equivalent basis

113,479


108,866


111,453


116,355


116,906


222,343

234,423


Non-interest income


26,983


30,382


30,709


32,755


36,112


57,365

69,320


Net interest income on a fully taxable equivalent basis plus non-interest income

$       140,462


$      139,248


$      142,162


$      149,110


$      153,018


$       279,708

$      303,743


Efficiency ratio


61.91 %


61.73 %


61.99 %


60.52 %


53.97 %


61.82 %

55.33 %

































Net income available to common shareholders, excluding after-tax restructuring and merger-related expenses:














Net income available to common shareholders

$         40,217


$        41,593


$        51,617


$        41,877


$        68,057


$         81,807

$      138,641


Add: After-tax restructuring and merger-related expenses (1)

41


1,258


140


3,529


965


1,300

1,638

Net income available to common shareholders, excluding after-tax restructuring and merger-related expenses

$         40,258


$        42,851


$        51,757


$        45,406


$        69,022


$         83,107

$      140,279

































Net income per common share - diluted, excluding after-tax restructuring and merger-related expenses:














Net income per common share - diluted

$              0.67


$            0.68


$            0.82


$            0.64


$            1.01


$              1.34

$            2.06


Add: After-tax restructuring and merger-related expenses per common share - diluted (1)

-


0.02


-


0.06


0.02


0.02

0.03

Net income per common share - diluted, excluding after-tax restructuring and merger-related expenses

$              0.67


$            0.70


$            0.82


$            0.70


$            1.03


$              1.36

$            2.09





































Period End








June 30,


Mar. 31,


Dec. 31,


Sept. 30,


June 30,








2022


2022


2021


2021


2021




Tangible book value per share:














Total shareholders' equity

$   2,467,951


$   2,547,316


$   2,693,166


$   2,723,983


$   2,780,836





Less:  goodwill and other intangible assets, net of def. tax liability

(1,136,020)


(1,138,057)


(1,140,111)


(1,142,350)


(1,144,604)





Less: preferred shareholder's equity

(144,484)


(144,484)


(144,484)


(144,484)


(144,484)





Tangible common equity

1,187,447


1,264,775


1,408,571


1,437,149


1,491,748





















Common shares outstanding

59,698,788


60,613,414


62,307,245


63,838,549


65,970,149




















Tangible book value per share

$           19.89


$          20.87


$          22.61


$          22.51


$          22.61




















Tangible common equity to tangible assets:














Total shareholders' equity

$   2,467,951


$   2,547,316


$   2,693,166


$   2,723,983


$   2,780,836





Less:  goodwill and other intangible assets, net of def. tax liability

(1,136,020)


(1,138,057)


(1,140,111)


(1,142,350)


(1,144,604)





Tangible equity


1,331,931


1,409,259


1,553,055


1,581,633


1,636,232





Less: preferred shareholder's equity

(144,484)


(144,484)


(144,484)


(144,484)


(144,484)





Tangible common equity

1,187,447


1,264,775


1,408,571


1,437,149


1,491,748





















Total assets


16,799,624


17,104,015


16,927,125


16,892,111


16,966,867





Less:  goodwill and other intangible assets, net of def. tax liability

(1,136,020)


(1,138,057)


(1,140,111)


(1,142,350)


(1,144,604)





Tangible assets


$ 15,663,604


$ 15,965,958


$ 15,787,014


$ 15,749,761


$ 15,822,263




















Tangible equity to tangible assets

8.50 %


8.83 %


9.84 %


10.04 %


10.34 %




















Tangible common equity to tangible assets

7.58 %


7.92 %


8.92 %


9.12 %


9.43 %




































(1) Tax effected at 21% for all periods presented.













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













 

WESBANCO, INC.














Additional Non-GAAP Financial Measures












Page 13

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 





June 30,


Mar. 31,


Dec. 31,


Sept. 30,


June 30,


June 30,

(unaudited, dollars in thousands, except shares and per share amounts)

2022


2022


2021


2021


2021


2022

2021

Pre-tax, pre-provision income:














Income before provision for income taxes

$         53,004


$        53,983


$        66,292


$        55,059


$        89,180


$       106,984

$      180,497


Add: provision for credit losses

(812)


(3,438)


(13,559)


(1,730)


(21,025)


(4,250)

(48,984)

Pre-tax, pre-provision income


$         52,192


$        50,545


$        52,733


$        53,329


$        68,155


$       102,734

$      131,513

















Pre-tax, pre-provision income, excluding restructuring and merger-related expenses:














Income before provision for income taxes

$         53,004


$        53,983


$        66,292


$        55,059


$        89,180


$       106,984

$      180,497


Add: provision for credit losses

(812)


(3,438)


(13,559)


(1,730)


(21,025)


(4,250)

(48,984)


Add: restructuring and merger-related expenses

52


1,593


177


4,467


1,222


1,646

2,074

Pre-tax, pre-provision income, excluding restructuring and merger-related expenses

$         52,244


$        52,138


$        52,910


$        57,796


$        69,377


$       104,380

$      133,587

















Return on average assets, excluding certain items (1):














Income before provision for income taxes

$         53,004


$        53,983


$        66,292


$        55,059


$        89,180


$       106,984

$      180,497


Add: provision for credit losses

(812)


(3,438)


(13,559)


(1,730)


(21,025)


(4,250)

(48,984)


Add: restructuring and merger-related expenses

52


1,593


177


4,467


1,222


1,646

2,074

Pre-tax, pre-provision income, excluding restructuring and merger-related expenses

52,244


52,138


52,910


57,796


69,377


104,380

133,587


















Average total assets


$ 16,971,452


$ 16,992,598


$ 16,947,662


$ 17,057,793


$ 17,042,147


$ 16,981,958

$ 16,840,324

















Return on average assets, excluding certain items (annualized)  (1) (2)

1.23 %


1.24 %


1.24 %


1.34 %


1.63 %


1.24 %

1.60 %

















Return on average equity, excluding certain items (1):














Income before provision for income taxes

$         53,004


$        53,983


$        66,292


$        55,059


$        89,180


$       106,984

$      180,497


Add: provision for credit losses

(812)


(3,438)


(13,559)


(1,730)


(21,025)


(4,250)

(48,984)


Add: restructuring and merger-related expenses

52


1,593


177


4,467


1,222


1,646

2,074

Pre-tax, pre-provision income, excluding restructuring and merger-related expenses

52,244


52,138


52,910


57,796


69,377


104,380

133,587


















Average total shareholders' equity

$   2,509,439


$   2,655,807


$   2,709,782


$   2,777,306


$   2,801,455


$   2,582,257

$   2,786,021

















Return on average equity, excluding certain items (annualized) (1) (2)

8.35 %


7.96 %


7.75 %


8.26 %


9.93 %


8.15 %

9.67 %

















Return on average tangible equity, excluding certain items (1):














Income before provision for income taxes

$         53,004


$        53,983


$        66,292


$        55,059


$        89,180


$       106,984

$      180,497


Add: provision for credit losses

(812)


(3,438)


(13,559)


(1,730)


(21,025)


(4,250)

(48,984)


Add: amortization of intangibles

2,579


2,598


2,834


2,854


2,873


5,178

5,769


Add: restructuring and merger-related expenses

52


1,593


177


4,467


1,222


1,646

2,074

Income before provision, restructuring and merger-related expenses and amortization of intangibles

54,823


54,736


55,744


60,650


72,250


109,558

139,356


















Average total shareholders' equity

2,509,439


2,655,807


2,709,782


2,777,306


2,801,455


2,582,257

2,786,021


Less: average goodwill and other intangibles, net of def. tax liability

(1,137,187)


(1,139,242)


(1,141,307)


(1,143,522)


(1,145,882)


(1,138,209)

(1,147,020)


Average tangible equity

$   1,372,252


$   1,516,565


$   1,568,475


$   1,633,784


$   1,655,573


$   1,444,048

$   1,639,001

















Return on average tangible equity, excluding certain items (annualized) (1) (2)

16.02 %


14.64 %


14.10 %


14.73 %


17.50 %


15.30 %

17.15 %


















Average tangible common equity

$   1,227,768


$   1,372,081


$   1,423,991


$   1,489,300


$   1,511,089


$   1,299,564

$   1,494,517

Return on average tangible common equity, excluding certain items (annualized) (1) (2)

17.91 %


16.18 %


15.53 %


16.16 %


19.18 %


17.00 %

18.80 %

































(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.













 

 

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/wesbanco-announces-second-quarter-2022-financial-results-301593709.html

SOURCE WesBanco, Inc.

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Government

Four Years Ago This Week, Freedom Was Torched

Four Years Ago This Week, Freedom Was Torched

Authored by Jeffrey Tucker via The Brownstone Institute,

"Beware the Ides of March,” Shakespeare…

Published

on

Four Years Ago This Week, Freedom Was Torched

Authored by Jeffrey Tucker via The Brownstone Institute,

"Beware the Ides of March,” Shakespeare quotes the soothsayer’s warning Julius Caesar about what turned out to be an impending assassination on March 15. The death of American liberty happened around the same time four years ago, when the orders went out from all levels of government to close all indoor and outdoor venues where people gather. 

It was not quite a law and it was never voted on by anyone. Seemingly out of nowhere, people who the public had largely ignored, the public health bureaucrats, all united to tell the executives in charge – mayors, governors, and the president – that the only way to deal with a respiratory virus was to scrap freedom and the Bill of Rights. 

And they did, not only in the US but all over the world. 

The forced closures in the US began on March 6 when the mayor of Austin, Texas, announced the shutdown of the technology and arts festival South by Southwest. Hundreds of thousands of contracts, of attendees and vendors, were instantly scrapped. The mayor said he was acting on the advice of his health experts and they in turn pointed to the CDC, which in turn pointed to the World Health Organization, which in turn pointed to member states and so on. 

There was no record of Covid in Austin, Texas, that day but they were sure they were doing their part to stop the spread. It was the first deployment of the “Zero Covid” strategy that became, for a time, official US policy, just as in China. 

It was never clear precisely who to blame or who would take responsibility, legal or otherwise. 

This Friday evening press conference in Austin was just the beginning. By the next Thursday evening, the lockdown mania reached a full crescendo. Donald Trump went on nationwide television to announce that everything was under control but that he was stopping all travel in and out of US borders, from Europe, the UK, Australia, and New Zealand. American citizens would need to return by Monday or be stuck. 

Americans abroad panicked while spending on tickets home and crowded into international airports with waits up to 8 hours standing shoulder to shoulder. It was the first clear sign: there would be no consistency in the deployment of these edicts. 

There is no historical record of any American president ever issuing global travel restrictions like this without a declaration of war. Until then, and since the age of travel began, every American had taken it for granted that he could buy a ticket and board a plane. That was no longer possible. Very quickly it became even difficult to travel state to state, as most states eventually implemented a two-week quarantine rule. 

The next day, Friday March 13, Broadway closed and New York City began to empty out as any residents who could went to summer homes or out of state. 

On that day, the Trump administration declared the national emergency by invoking the Stafford Act which triggers new powers and resources to the Federal Emergency Management Administration. 

In addition, the Department of Health and Human Services issued a classified document, only to be released to the public months later. The document initiated the lockdowns. It still does not exist on any government website.

The White House Coronavirus Response Task Force, led by the Vice President, will coordinate a whole-of-government approach, including governors, state and local officials, and members of Congress, to develop the best options for the safety, well-being, and health of the American people. HHS is the LFA [Lead Federal Agency] for coordinating the federal response to COVID-19.

Closures were guaranteed:

Recommend significantly limiting public gatherings and cancellation of almost all sporting events, performances, and public and private meetings that cannot be convened by phone. Consider school closures. Issue widespread ‘stay at home’ directives for public and private organizations, with nearly 100% telework for some, although critical public services and infrastructure may need to retain skeleton crews. Law enforcement could shift to focus more on crime prevention, as routine monitoring of storefronts could be important.

In this vision of turnkey totalitarian control of society, the vaccine was pre-approved: “Partner with pharmaceutical industry to produce anti-virals and vaccine.”

The National Security Council was put in charge of policy making. The CDC was just the marketing operation. That’s why it felt like martial law. Without using those words, that’s what was being declared. It even urged information management, with censorship strongly implied.

The timing here is fascinating. This document came out on a Friday. But according to every autobiographical account – from Mike Pence and Scott Gottlieb to Deborah Birx and Jared Kushner – the gathered team did not meet with Trump himself until the weekend of the 14th and 15th, Saturday and Sunday. 

According to their account, this was his first real encounter with the urge that he lock down the whole country. He reluctantly agreed to 15 days to flatten the curve. He announced this on Monday the 16th with the famous line: “All public and private venues where people gather should be closed.”

This makes no sense. The decision had already been made and all enabling documents were already in circulation. 

There are only two possibilities. 

One: the Department of Homeland Security issued this March 13 HHS document without Trump’s knowledge or authority. That seems unlikely. 

Two: Kushner, Birx, Pence, and Gottlieb are lying. They decided on a story and they are sticking to it. 

Trump himself has never explained the timeline or precisely when he decided to greenlight the lockdowns. To this day, he avoids the issue beyond his constant claim that he doesn’t get enough credit for his handling of the pandemic.

With Nixon, the famous question was always what did he know and when did he know it? When it comes to Trump and insofar as concerns Covid lockdowns – unlike the fake allegations of collusion with Russia – we have no investigations. To this day, no one in the corporate media seems even slightly interested in why, how, or when human rights got abolished by bureaucratic edict. 

As part of the lockdowns, the Cybersecurity and Infrastructure Security Agency, which was and is part of the Department of Homeland Security, as set up in 2018, broke the entire American labor force into essential and nonessential.

They also set up and enforced censorship protocols, which is why it seemed like so few objected. In addition, CISA was tasked with overseeing mail-in ballots. 

Only 8 days into the 15, Trump announced that he wanted to open the country by Easter, which was on April 12. His announcement on March 24 was treated as outrageous and irresponsible by the national press but keep in mind: Easter would already take us beyond the initial two-week lockdown. What seemed to be an opening was an extension of closing. 

This announcement by Trump encouraged Birx and Fauci to ask for an additional 30 days of lockdown, which Trump granted. Even on April 23, Trump told Georgia and Florida, which had made noises about reopening, that “It’s too soon.” He publicly fought with the governor of Georgia, who was first to open his state. 

Before the 15 days was over, Congress passed and the president signed the 880-page CARES Act, which authorized the distribution of $2 trillion to states, businesses, and individuals, thus guaranteeing that lockdowns would continue for the duration. 

There was never a stated exit plan beyond Birx’s public statements that she wanted zero cases of Covid in the country. That was never going to happen. It is very likely that the virus had already been circulating in the US and Canada from October 2019. A famous seroprevalence study by Jay Bhattacharya came out in May 2020 discerning that infections and immunity were already widespread in the California county they examined. 

What that implied was two crucial points: there was zero hope for the Zero Covid mission and this pandemic would end as they all did, through endemicity via exposure, not from a vaccine as such. That was certainly not the message that was being broadcast from Washington. The growing sense at the time was that we all had to sit tight and just wait for the inoculation on which pharmaceutical companies were working. 

By summer 2020, you recall what happened. A restless generation of kids fed up with this stay-at-home nonsense seized on the opportunity to protest racial injustice in the killing of George Floyd. Public health officials approved of these gatherings – unlike protests against lockdowns – on grounds that racism was a virus even more serious than Covid. Some of these protests got out of hand and became violent and destructive. 

Meanwhile, substance abuse rage – the liquor and weed stores never closed – and immune systems were being degraded by lack of normal exposure, exactly as the Bakersfield doctors had predicted. Millions of small businesses had closed. The learning losses from school closures were mounting, as it turned out that Zoom school was near worthless. 

It was about this time that Trump seemed to figure out – thanks to the wise council of Dr. Scott Atlas – that he had been played and started urging states to reopen. But it was strange: he seemed to be less in the position of being a president in charge and more of a public pundit, Tweeting out his wishes until his account was banned. He was unable to put the worms back in the can that he had approved opening. 

By that time, and by all accounts, Trump was convinced that the whole effort was a mistake, that he had been trolled into wrecking the country he promised to make great. It was too late. Mail-in ballots had been widely approved, the country was in shambles, the media and public health bureaucrats were ruling the airwaves, and his final months of the campaign failed even to come to grips with the reality on the ground. 

At the time, many people had predicted that once Biden took office and the vaccine was released, Covid would be declared to have been beaten. But that didn’t happen and mainly for one reason: resistance to the vaccine was more intense than anyone had predicted. The Biden administration attempted to impose mandates on the entire US workforce. Thanks to a Supreme Court ruling, that effort was thwarted but not before HR departments around the country had already implemented them. 

As the months rolled on – and four major cities closed all public accommodations to the unvaccinated, who were being demonized for prolonging the pandemic – it became clear that the vaccine could not and would not stop infection or transmission, which means that this shot could not be classified as a public health benefit. Even as a private benefit, the evidence was mixed. Any protection it provided was short-lived and reports of vaccine injury began to mount. Even now, we cannot gain full clarity on the scale of the problem because essential data and documentation remains classified. 

After four years, we find ourselves in a strange position. We still do not know precisely what unfolded in mid-March 2020: who made what decisions, when, and why. There has been no serious attempt at any high level to provide a clear accounting much less assign blame. 

Not even Tucker Carlson, who reportedly played a crucial role in getting Trump to panic over the virus, will tell us the source of his own information or what his source told him. There have been a series of valuable hearings in the House and Senate but they have received little to no press attention, and none have focus on the lockdown orders themselves. 

The prevailing attitude in public life is just to forget the whole thing. And yet we live now in a country very different from the one we inhabited five years ago. Our media is captured. Social media is widely censored in violation of the First Amendment, a problem being taken up by the Supreme Court this month with no certainty of the outcome. The administrative state that seized control has not given up power. Crime has been normalized. Art and music institutions are on the rocks. Public trust in all official institutions is at rock bottom. We don’t even know if we can trust the elections anymore. 

In the early days of lockdown, Henry Kissinger warned that if the mitigation plan does not go well, the world will find itself set “on fire.” He died in 2023. Meanwhile, the world is indeed on fire. The essential struggle in every country on earth today concerns the battle between the authority and power of permanent administration apparatus of the state – the very one that took total control in lockdowns – and the enlightenment ideal of a government that is responsible to the will of the people and the moral demand for freedom and rights. 

How this struggle turns out is the essential story of our times. 

CODA: I’m embedding a copy of PanCAP Adapted, as annotated by Debbie Lerman. You might need to download the whole thing to see the annotations. If you can help with research, please do.

*  *  *

Jeffrey Tucker is the author of the excellent new book 'Life After Lock-Down'

Tyler Durden Mon, 03/11/2024 - 23:40

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Government

CDC Warns Thousands Of Children Sent To ER After Taking Common Sleep Aid

CDC Warns Thousands Of Children Sent To ER After Taking Common Sleep Aid

Authored by Jack Phillips via The Epoch Times (emphasis ours),

A…

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CDC Warns Thousands Of Children Sent To ER After Taking Common Sleep Aid

Authored by Jack Phillips via The Epoch Times (emphasis ours),

A U.S. Centers for Disease Control (CDC) paper released Thursday found that thousands of young children have been taken to the emergency room over the past several years after taking the very common sleep-aid supplement melatonin.

The Centers for Disease Control and Prevention (CDC) headquarters in Atlanta, Georgia, on April 23, 2020. (Tami Chappell/AFP via Getty Images)

The agency said that melatonin, which can come in gummies that are meant for adults, was implicated in about 7 percent of all emergency room visits for young children and infants “for unsupervised medication ingestions,” adding that many incidents were linked to the ingestion of gummy formulations that were flavored. Those incidents occurred between the years 2019 and 2022.

Melatonin is a hormone produced by the human body to regulate its sleep cycle. Supplements, which are sold in a number of different formulas, are generally taken before falling asleep and are popular among people suffering from insomnia, jet lag, chronic pain, or other problems.

The supplement isn’t regulated by the U.S. Food and Drug Administration and does not require child-resistant packaging. However, a number of supplement companies include caps or lids that are difficult for children to open.

The CDC report said that a significant number of melatonin-ingestion cases among young children were due to the children opening bottles that had not been properly closed or were within their reach. Thursday’s report, the agency said, “highlights the importance of educating parents and other caregivers about keeping all medications and supplements (including gummies) out of children’s reach and sight,” including melatonin.

The approximately 11,000 emergency department visits for unsupervised melatonin ingestions by infants and young children during 2019–2022 highlight the importance of educating parents and other caregivers about keeping all medications and supplements (including gummies) out of children’s reach and sight.

The CDC notes that melatonin use among Americans has increased five-fold over the past 25 years or so. That has coincided with a 530 percent increase in poison center calls for melatonin exposures to children between 2012 and 2021, it said, as well as a 420 percent increase in emergency visits for unsupervised melatonin ingestion by young children or infants between 2009 and 2020.

Some health officials advise that children under the age of 3 should avoid taking melatonin unless a doctor says otherwise. Side effects include drowsiness, headaches, agitation, dizziness, and bed wetting.

Other symptoms of too much melatonin include nausea, diarrhea, joint pain, anxiety, and irritability. The supplement can also impact blood pressure.

However, there is no established threshold for a melatonin overdose, officials have said. Most adult melatonin supplements contain a maximum of 10 milligrams of melatonin per serving, and some contain less.

Many people can tolerate even relatively large doses of melatonin without significant harm, officials say. But there is no antidote for an overdose. In cases of a child accidentally ingesting melatonin, doctors often ask a reliable adult to monitor them at home.

Dr. Cora Collette Breuner, with the Seattle Children’s Hospital at the University of Washington, told CNN that parents should speak with a doctor before giving their children the supplement.

“I also tell families, this is not something your child should take forever. Nobody knows what the long-term effects of taking this is on your child’s growth and development,” she told the outlet. “Taking away blue-light-emitting smartphones, tablets, laptops, and television at least two hours before bed will keep melatonin production humming along, as will reading or listening to bedtime stories in a softly lit room, taking a warm bath, or doing light stretches.”

In 2022, researchers found that in 2021, U.S. poison control centers received more than 52,000 calls about children consuming worrisome amounts of the dietary supplement. That’s a six-fold increase from about a decade earlier. Most such calls are about young children who accidentally got into bottles of melatonin, some of which come in the form of gummies for kids, the report said.

Dr. Karima Lelak, an emergency physician at Children’s Hospital of Michigan and the lead author of the study published in 2022 by the CDC, found that in about 83 percent of those calls, the children did not show any symptoms.

However, other children had vomiting, altered breathing, or other symptoms. Over the 10 years studied, more than 4,000 children were hospitalized, five were put on machines to help them breathe, and two children under the age of two died. Most of the hospitalized children were teenagers, and many of those ingestions were thought to be suicide attempts.

Those researchers also suggested that COVID-19 lockdowns and virtual learning forced more children to be at home all day, meaning there were more opportunities for kids to access melatonin. Also, those restrictions may have caused sleep-disrupting stress and anxiety, leading more families to consider melatonin, they suggested.

The Associated Press contributed to this report.

Tyler Durden Mon, 03/11/2024 - 21:40

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International

Red Candle In The Wind

Red Candle In The Wind

By Benjamin PIcton of Rabobank

February non-farm payrolls superficially exceeded market expectations on Friday by…

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Red Candle In The Wind

By Benjamin PIcton of Rabobank

February non-farm payrolls superficially exceeded market expectations on Friday by printing at 275,000 against a consensus call of 200,000. We say superficially, because the downward revisions to prior months totalled 167,000 for December and January, taking the total change in employed persons well below the implied forecast, and helping the unemployment rate to pop two-ticks to 3.9%. The U6 underemployment rate also rose from 7.2% to 7.3%, while average hourly earnings growth fell to 0.2% m-o-m and average weekly hours worked languished at 34.3, equalling pre-pandemic lows.

Undeterred by the devil in the detail, the algos sprang into action once exchanges opened. Market darling NVIDIA hit a new intraday high of $974 before (presumably) the humans took over and sold the stock down more than 10% to close at $875.28. If our suspicions are correct that it was the AIs buying before the humans started selling (no doubt triggering trailing stops on the way down), the irony is not lost on us.

The 1-day chart for NVIDIA now makes for interesting viewing, because the red candle posted on Friday presents quite a strong bearish engulfing signal. Volume traded on the day was almost double the 15-day simple moving average, and similar price action is observable on the 1-day charts for both Intel and AMD. Regular readers will be aware that we have expressed incredulity in the past about the durability the AI thematic melt-up, so it will be interesting to see whether Friday’s sell off is just a profit-taking blip, or a genuine trend reversal.

AI equities aside, this week ought to be important for markets because the BTFP program expires today. That means that the Fed will no longer be loaning cash to the banking system in exchange for collateral pledged at-par. The KBW Regional Banking index has so far taken this in its stride and is trading 30% above the lows established during the mini banking crisis of this time last year, but the Fed’s liquidity facility was effectively an exercise in can-kicking that makes regional banks a sector of the market worth paying attention to in the weeks ahead. Even here in Sydney, regulators are warning of external risks posed to the banking sector from scheduled refinancing of commercial real estate loans following sharp falls in valuations.

Markets are sending signals in other sectors, too. Gold closed at a new record-high of $2178/oz on Friday after trading above $2200/oz briefly. Gold has been going ballistic since the Friday before last, posting gains even on days where 2-year Treasury yields have risen. Gold bugs are buying as real yields fall from the October highs and inflation breakevens creep higher. This is particularly interesting as gold ETFs have been recording net outflows; suggesting that price gains aren’t being driven by a retail pile-in. Are gold buyers now betting on a stagflationary outcome where the Fed cuts without inflation being anchored at the 2% target? The price action around the US CPI release tomorrow ought to be illuminating.

Leaving the day-to-day movements to one side, we are also seeing further signs of structural change at the macro level. The UK budget last week included a provision for the creation of a British ISA. That is, an Individual Savings Account that provides tax breaks to savers who invest their money in the stock of British companies. This follows moves last year to encourage pension funds to head up the risk curve by allocating 5% of their capital to unlisted investments.

As a Hail Mary option for a government cruising toward an electoral drubbing it’s a curious choice, but it’s worth highlighting as cash-strapped governments increasingly see private savings pools as a funding solution for their spending priorities.

Of course, the UK is not alone in making creeping moves towards financial repression. In contrast to announcements today of increased trade liberalisation, Australian Treasurer Jim Chalmers has in the recent past flagged his interest in tapping private pension savings to fund state spending priorities, including defence, public housing and renewable energy projects. Both the UK and Australia appear intent on finding ways to open up the lungs of their economies, but government wants more say in directing private capital flows for state goals.

So, how far is the blurring of the lines between free markets and state planning likely to go? Given the immense and varied budgetary (and security) pressures that governments are facing, could we see a re-up of WWII-era Victory bonds, where private investors are encouraged to do their patriotic duty by directly financing government at negative real rates?

That would really light a fire under the gold market.

Tyler Durden Mon, 03/11/2024 - 19:00

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