Business Segments

12 Months Ended

Dec. 31, 2019

NOTE 24. BUSINESS SEGMENTS

Wesbanco operates two reportable segments: (i) Community Banking and (ii) 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 of the trust and investment services segment was approximately $4.7 billion, $4.3 billion and $3.9 billion at December 31, 2019, 2018 and 2017, 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:

(in thousands)	Community Banking		Trust and Investment Services		Consolidated
For the Year Ended December 31, 2019
Interest and dividend income	$	484,253	$	—	$	484,253
Interest expense		84,349		—		84,349
Net interest income		399,904		—		399,904
Provision for credit losses		11,198		—		11,198
Net interest income after provision for credit losses		388,706		—		388,706
Non-interest income		90,137		26,579		116,716
Non-interest expense		295,747		16,461		312,208
Income before provision for income taxes		183,096		10,118		193,214
Provision for income taxes		32,216		2,125		34,341
Net income	$	150,880	$	7,993	$	158,873
For the Year Ended December 31, 2018
Interest and dividend income	$	414,957	$	-		414,957
Interest expense		67,721		-		67,721
Net interest income		347,236		-		347,236
Provision for credit losses		7,764		-		7,764
Net interest income after provision for credit losses		339,472		-		339,472
Non-interest income		75,653		24,623		100,276
Non-interest expense		250,338		14,886		265,224
Income before provision for income taxes		164,787		9,737		174,524
Provision for income taxes		29,367		2,045		31,412
Net income	$	135,420	$	7,692	$	143,112
For the Year Ended December 31, 2017
Interest and dividend income	$	332,424	$	-		332,424
Interest expense		42,129		-		42,129
Net interest income		290,295		-		290,295
Provision for credit losses		9,986		-		9,986
Net interest income after provision for credit losses		280,309		-		280,309
Non-interest income		66,100		22,740		88,840
Non-interest expense		207,441		13,419		220,860
Income before provision for income taxes		138,968		9,321		148,289
Provision for income taxes		50,079		3,728		53,807
Net income	$	88,889	$	5,593	$	94,482

Total non-fiduciary assets of the trust and investment services segment were $4.2 million (including $2.6 million of trust customer intangibles), $4.6 million, and $1.5 million at December 31, 2019, 2018, and 2017, respectively. All other assets, including goodwill and the remainder of other intangible assets, were allocated to the Community Banking segment.