Business Segments

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Business Segments

NOTE 12. 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 $4.6 billion and $4.4 billion at September 30, 2020 and 2019, 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 September 30, 2020
Interest and dividend income	$	133,657	$	—	$	133,657
Interest expense		13,064		—		13,064
Net interest income		120,593		—		120,593
Provision for credit losses		16,288		—		16,288
Net interest income after provision for credit losses		104,305		—		104,305
Non-interest income		28,186		6,426		34,612
Non-interest expense		86,011		3,932		89,943
Income before provision for income taxes		46,480		2,494		48,974
Provision for income taxes		7,145		524		7,669
Net income	$	39,335	$	1,970	$	41,305
For The Three Months Ended September 30, 2019
Interest and dividend income	$	117,348	$	—	$	117,348
Interest expense		21,228		—		21,228
Net interest income		96,120		—		96,120
Provision for credit losses		4,121		—		4,121
Net interest income after provision for credit losses		91,999		—		91,999
Non-interest income		20,525		6,425		26,950
Non-interest expense		69,068		4,200		73,268
Income before provision for income taxes		43,456		2,225		45,681
Provision for income taxes		7,866		468		8,334
Net income	$	35,590	$	1,757	$	37,347
For the Nine Months Ended September 30, 2020
Interest and dividend income	$	410,799	$	—	$	410,799
Interest expense		51,031		—		51,031
Net interest income		359,768		—		359,768
Provision for credit losses		107,949		—		107,949
Net interest income after provision for credit losses		251,819		—		251,819
Non-interest income		75,901		19,580		95,481
Non-interest expense		254,517		12,262		266,779
Income before provision for income taxes		73,203		7,318		80,521
Provision for income taxes		9,795		1,537		11,332
Net income	$	63,408	$	5,781	$	69,189
For the Nine Months Ended September 30, 2019
Interest and dividend income	$	355,944	$	—	$	355,944
Interest expense		63,003		—		63,003
Net interest income		292,941		—		292,941
Provision for credit losses		9,375		—		9,375
Net interest income after provision for credit losses		283,566		—		283,566
Non-interest income		65,998		19,880		85,878
Non-interest expense		207,299		12,353		219,652
Income before provision for income taxes		142,265		7,527		149,792
Provision for income taxes		25,714		1,581		27,295
Net income	$	116,551	$	5,946	$	122,497

Total non-fiduciary assets of the trust and investment services segment were $4.2 million (including $2.3 million of trust customer intangibles) and $4.0 million (including $2.5 million of trust customer intangibles) at September 30, 2020 and 2019, respectively.  All other assets, including goodwill and the remainder of other intangible assets, were allocated to the Community Banking segment.