Business Segments

6 Months Ended

Jun. 30, 2019

NOTE 13. BUSINESS SEGMENTS

WesBanco operates two reportable segments: community banking and trust and investment services. WesBanco’s community banking segment offers services traditionally offered by full-service commercial banks, including commercial demand, individual demand and time deposit accounts, as well as commercial, mortgage and individual installment loans, and certain non-traditional offerings, such as insurance and securities brokerage services. The trust and investment services segment offers trust services as well as various alternative investment products including mutual funds. The market value of assets managed or held in custody by the trust and investment services segment was approximately $4.5 billion and $4.0 billion at June 30, 2019 and 2018, respectively. These assets are held by WesBanco in fiduciary or agency capacities for their customers and therefore are not included as assets on WesBanco’s Consolidated Balance Sheets.

Condensed financial information by business segment is presented below:

			Trust and
	Community		Investment
(unaudited, in thousands)	Banking		Services		Consolidated
For The Three Months Ended June 30, 2019
Interest and dividend income	$	119,543	$	—	$	119,543
Interest expense		21,083		—		21,083
Net interest income		98,460		—		98,460
Provision for credit losses		2,747		—		2,747
Net interest income after provision for credit losses		95,713		—		95,713
Non-interest income		24,817		6,339		31,156
Non-interest expense		67,957		3,995		71,952
Income before provision for income taxes		52,573		2,344		54,917
Provision for income taxes		9,611		492		10,103
Net income	$	42,962	$	1,852	$	44,814

For The Three Months Ended June 30, 2018
Interest and dividend income	$	98,888	$	—	$	98,888
Interest expense		16,541		—		16,541
Net interest income		82,347		—		82,347
Provision for credit losses		1,708		—		1,708
Net interest income after provision for credit losses		80,639		—		80,639
Non-interest income		17,656		5,752		23,408
Non-interest expense		60,026		3,517		63,543
Income before provision for income taxes		38,269		2,235		40,504
Provision for income taxes		6,865		470		7,335
Net income	$	31,404	$	1,765	$	33,169

For the Six Months Ended June 30, 2019
Interest and dividend income	$	238,596	$	—	$	238,596
Interest expense		41,774		—		41,774
Net interest income		196,822		—		196,822
Provision for credit losses		5,254		—		5,254
Net interest income after provision for credit losses		191,568		—		191,568
Non-interest income		45,475		13,454		58,929
Non-interest expense		138,233		8,152		146,385
Income before provision for income taxes		98,810		5,302		104,112
Provision for income taxes		17,848		1,113		18,961
Net income	$	80,962	$	4,189	$	85,151

For the Six Months Ended June 30, 2018
Interest and dividend income	$	185,203	$	—	$	185,203
Interest expense		29,667		—		29,667
Net interest income		155,536		—		155,536
Provision for credit losses		3,876		—		3,876
Net interest income after provision for credit losses		151,660		—		151,660
Non-interest income		35,236		12,255		47,491
Non-interest expense		110,920		7,194		118,114
Income before provision for income taxes		75,976		5,061		81,037
Provision for income taxes		13,276		1,063		14,339
Net income	$	62,700	$	3,998	$	66,698

Total non-fiduciary assets of the trust and investment services segment were $3.9 million (including $2.6 million of trust customer intangibles) and $1.7 million at June 30, 2019 and 2018, respectively. All other assets, including goodwill and the remainder of other intangible assets, were allocated to the Community Banking segment.