WesBanco Announces 29% Increase in Net Income for 2013

PR Newswire

WHEELING, W.V., Jan. 28, 2014 /PRNewswire/ -- Paul M. Limbert, President and Chief Executive Officer of WesBanco, Inc. (NASDAQ Global Market: WSBC), a Wheeling, West Virginia based multi-state bank holding company, today announced an increase in earnings per share and related net income for the three and twelve month periods ended December 31, 2013.

Net income increased 29% for the twelve months ended December 31, 2013, to $63.9 million compared to $49.5 million for 2012, while diluted earnings per share were $2.18, an increase of 18% compared to $1.84 per share for 2012. For the fourth quarter of 2013, net income was $15.4 million compared to $12.7 million for the fourth quarter of 2012, representing a 21% increase. Diluted earnings per share for the fourth quarter were $0.52, compared to $0.46 in the 2012 quarter. The increased net income improved the return on average assets to 1.05% in 2013 from 0.88% in 2012, and the return on average tangible equity (non-GAAP measure) increased to approximately 16% from 14%. The results for 2013 include the first full year of the late 2012 acquisition of Pittsburgh based Fidelity Bancorp, Inc. ("Fidelity") that significantly expanded WesBanco's presence in the southwestern Pennsylvania market.

Mr. Limbert commented, "We are pleased with the strong earnings performance in 2013 and third consecutive year of balance sheet growth. Loan growth was achieved through the business development efforts of our additions to customer relationship personnel. Net interest income and margin improved substantially in the last year from higher loan balances as well as a significant reduction in the cost of funds. Accelerated growth of trust assets and growth in deposits over the last year contributed to increased fee income. Credit quality continued to improve, resulting in a significant reduction in problem loans and a lower provision for credit losses. The continued development of our operating and technology resources were also major contributors to the 2013 results."

Financial Condition

Total assets at December 31, 2013 increased 1.1% or $66.1 million from December 31, 2012, primarily due to loan growth. Portfolio loans increased $207.2 million or 5.6% in 2013, with $58.4 million of growth coming in the fourth quarter. Loan growth was achieved through $1.6 billion in loan originations in 2013. This represents an increase of 31.5% in loan originations compared to 2012. Growth was centered in commercial real estate construction and C&I lending as a result of improved economic conditions, increased business activity in markets impacted by Marcellus and Utica shale gas drilling, expansion into the Pittsburgh market, additional lending personnel and continued improvement in loan origination processes. In addition, a $117 million increase in unfunded commitments on construction loans will be advanced over the next twelve to eighteen months which should generate higher loan balances in 2014. Loan growth was funded primarily by growth in deposits and by maturing securities. Deposits increased $118.2 million or 2.4% from December 31, 2012, some of which was the result of initial deposits from bonus and royalty payments for Marcellus and Utica shale gas payments from energy companies operating in our local markets. All deposit types increased except certificates of deposit, which decreased $138.1 million due to lower rate offerings on roll overs of maturities. Available core deposit funding and maturities in the investment portfolio were also used to reduce higher cost borrowings by 19.5%, further reducing cost of funds.

WesBanco continues to maintain strong regulatory capital ratios. At December 31, 2013, tier I leverage was 9.27%, tier I risk-based capital was 13.06%, and total risk-based capital was 14.19%, which were similar to or slightly improved from year end 2012. Both consolidated and bank-level regulatory capital ratios are well above the applicable "well-capitalized" standards promulgated by bank regulators, as well as the recently finalized BASEL III capital standards. Total tangible equity to tangible assets (non-GAAP measure) was 7.35% at December 31, 2013, up from 6.84% at 2012 year-end, despite increased assets, lower other comprehensive income from lower securities valuations and the fourth quarter repurchase of 193,075 shares of WesBanco stock. Strong earnings and improved total capital have enabled WesBanco to increase the quarterly dividend rate, currently at $0.20 per share, six times over the last three years, cumulatively representing a 43% increase, with a 2013 increase of 11%.

Credit Quality

Credit quality has continued to improve over the past quarter and year. Total non-performing loans at December 31, 2013 were $51.5 million or 1.32% of total loans, which represents a 4.0% decrease from September 30, 2013 and a 19.1% decrease from $63.7 million or 1.73% of total loans at December 31, 2012. Criticized and classified loans decreased 4.0% in the fourth quarter of 2013 compared to September 30, 2013 to $135.6 million, or 3.48% of total loans at December 31, 2013 and decreased 21.5% over the last twelve months from $172.7 million and 4.68% last year.

Net charge-offs for the fourth quarter of 2013 were $2.9 million, or 0.30% of average portfolio loans, and $14.2 million or 0.38% for the year, compared to net charge-offs of $4.1 million or 0.47% for the fourth quarter of 2012, and $22.1 million or 0.66% for 2012. As a result of an improvement in all measures of credit quality, including delinquent and non-performing loans and classified and criticized loans, the provision for credit losses decreased to $3.1 million for the fourth quarter of 2013 compared to $3.3 million for the same quarter in 2012, and $9.1 million year-to-date compared to $19.9 million last year. The allowance for loan losses represented 1.22% of total portfolio loans at the end of 2013 compared to 1.43% last year.

Net Interest Income

Net interest income increased $17.1 million or 10.2% in 2013 compared to 2012, due to an 8.5% increase in average earning assets, primarily through increased average loan balances. In addition, the net interest margin increased 5 basis points to 3.58%, benefitting from the loan growth, purchase accounting-related accretion and a continued decrease in funding costs. In the fourth quarter, net interest income increased 9.1% due to a 6.5% increase in average earning assets compared to the same quarter of 2012. The net interest margin for the quarter improved by 8 basis points, also to 3.58%. The margin improvement in 2013 was due to lower funding costs resulting from a 36.1% average reduction in higher rate FHLB advances and other borrowings, primarily through maturities, an 11.8% increase in total average deposits, with 88.6% of the increase from lower cost demand, money market or savings accounts and the repricing at lower rates of maturing CDs. Accretion of various purchase accounting adjustments from the acquisition also improved the net interest margin by 9 b.p. for the year, and 5 b.p. for the quarter.

Non-Interest Income and Non-Interest Expense

For 2013, non-interest income increased $4.5 million or 7.0% compared to 2012. Trust fees increased 8.5% as assets under management continued to increase from customer development initiatives and overall market improvements. Total trust assets were up 13.9% for the year. Net securities brokerage revenues increased 35.7%, due to significant production increases from existing markets, the deployment of an advisor team in the Pittsburgh market, the addition of support and producing staff in several regions, and an increase in referrals and production from a licensed retail banker program. Service charges on deposits and electronic banking fees continued to grow, up 4.6% and 7.6% respectively for 2013. Securities gains were lower due to reduced portfolio restructuring compared to prior periods as interest rates increased. Non-interest income declined by 3.7% in the fourth quarter of 2013 compared to the fourth quarter of 2012 primarily due to lower security gains and lower net gains on sales of mortgage loans, while fee income continued to increase. Mortgage loan sales gains decreased as the percentage of mortgage loans retained for the portfolio increased and loan production declined, beginning in the fourth quarter, as increasing interest rates reduced refinancings. However, WesBanco overall achieved record mortgage loan production in 2013, up 13% from 2012 to $392 million.

Non-interest expense in 2013 increased $10.9 million or 7.3% compared to 2012, but decreased $0.8 million or 2.0% for the fourth quarter of 2013 compared to the fourth quarter of 2012. Increases were partially due to recurring expenses related to operating 13 additional branches acquired in the acquisition. Most of the back office and other administrative savings targeted to be obtained from the merger were accomplished by year-end. Lower merger-related costs benefited both the quarter and the year-to-date periods of 2013 and, combined with generally lower expense growth in the fourth quarter, provided the overall reduction in fourth quarter expenses. Salaries and wages increased 11.1% for 2013 due to routine annual adjustments to compensation, increased full time equivalent employees ("FTEs") in the Pittsburgh market partially offset by the integration efficiencies, increased commissions on higher loan originations and brokerage revenue and higher incentive compensation. Employee benefit expenses increased for the year primarily from increased pension expense and employer taxes. Marketing costs were higher compared to 2012 due to additional marketing initiatives during 2013 and marketing expenses in the new Pittsburgh market.

Financial Results Conference Call

WesBanco, Inc. will host a conference call to discuss the Company's financial results for the fourth quarter of 2013 on Wednesday, January 29, 2014, at 11:00 a.m. E.S.T. Callers wishing to participate should access the call by dialing 1-877-870-4263 or 1-412-317-0790 for international callers. The call may also be listened to live via Webcast through the "Investor Relations" section of the Company's Web site at www.wesbanco.com or by registering at http://www.videonewswire.com/event.asp?id=97572. Access to the Webcast will begin approximately 15 minutes prior to the start of the call.

WesBanco is a multi-state bank holding company with total assets of approximately $6.1 billion, operating through 120 branch locations and 105 ATMs in West Virginia, Ohio, and Pennsylvania. WesBanco's banking subsidiary is WesBanco Bank, Inc., headquartered in Wheeling, West Virginia. WesBanco also operates an insurance brokerage company, WesBanco Insurance Services, Inc., and a full service broker/dealer, WesBanco Securities, Inc.

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, 2012 and documents subsequently filed by WesBanco with the Securities and Exchange Commission ("SEC"), including WesBanco's Form 10-Q for the quarters ended March 31, 2013, June 30, 2013 and September 30, 2013, respectively, 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, that the businesses of WesBanco and Fidelity may not be integrated successfully or such integration may take longer to accomplish than expected; the expected cost savings and any revenue synergies from the merger of WesBanco and Fidelity may not be fully realized within the expected timeframes; disruption from the merger of WesBanco and Fidelity may make it more difficult to maintain relationships with clients, associates, or suppliers; the effects of changing regional and national economic conditions; changes in interest rates, spreads on earning assets and interest-bearing liabilities, and associated interest rate sensitivity; sources of liquidity available to WesBanco and its related subsidiary operations; potential future credit losses and the credit risk of commercial, real estate, and consumer loan customers and their borrowing activities; actions of the Federal Reserve Board, the Federal Deposit Insurance Corporation, the SEC, the Financial Institution Regulatory Authority, the Municipal Securities Rulemaking Board, the Securities Investors Protection Corporation, and other regulatory bodies; potential legislative and federal and state regulatory actions and reform, including, without limitation, the impact of the implementation of the Dodd-Frank Act; adverse decisions of federal and state courts; fraud, scams and schemes of third parties; internet hacking; 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.

 

WESBANCO, INC.












Consolidated Selected Financial Highlights











Page 4

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































For the Three Months Ended


For the Year Ended

STATEMENT OF INCOME

December 31,


December 31,

Interest and dividend income

2013


2012


% Change


2013


2012


% Change


Loans, including fees

$ 43,617


$ 42,311


3.09%


$ 175,323


$ 166,656


5.20%


Interest and dividends on securities:














Taxable

7,178


7,677


(6.50%)


29,193


32,461


(10.07%)



Tax-exempt

3,380


3,129


8.02%


13,128


12,399


5.88%




Total interest and dividends on securities

10,558


10,806


(2.30%)


42,321


44,860


(5.66%)


Other interest income

82


55


49.09%


246


170


44.71%

               Total interest and dividend income

54,257


53,172


2.04%


217,890


211,686


2.93%

Interest expense













Interest bearing demand deposits

380


395


(3.80%)


1,415


1,526


(7.27%)


Money market deposits

440


397


10.83%


1,462


2,183


(33.03%)


Savings deposits

130


168


(22.62%)


525


864


(39.24%)


Certificates of deposit

4,383


6,321


(30.66%)


22,010


26,371


(16.54%)




Total interest expense on deposits

5,333


7,281


(26.75%)


25,412


30,944


(17.88%)


Federal Home Loan Bank borrowings

251


789


(68.19%)


1,151


4,473


(74.27%)


Other short-term borrowings

625


976


(35.96%)


2,525


4,480


(43.64%)


Junior subordinated debt owed to unconsolidated subsidiary trusts

810


840


(3.57%)


3,315


3,438


(3.58%)




Total interest expense

7,019


9,886


(29.00%)


32,403


43,335


(25.23%)

Net interest income

47,238


43,286


9.13%


185,487


168,351


10.18%


Provision for credit losses

3,144


3,272


(3.91%)


9,086


19,874


(54.28%)

Net interest income after provision for credit losses

44,094


40,014


10.20%


176,401


148,477


18.81%

Non-interest income













Trust fees

4,883


4,655


4.90%


19,577


18,044


8.50%


Service charges on deposits

4,616


4,565


1.12%


17,925


17,138


4.59%


Electronic banking fees

3,012


2,807


7.30%


12,198


11,336


7.60%


Net securities brokerage revenue

1,604


1,284


24.92%


6,248


4,604


35.71%


Bank-owned life insurance

925


870


6.32%


4,664


3,516


32.65%


Net gains on sales of mortgage loans

456


1,015


(55.07%)


2,614


2,876


(9.11%)


Net securities (losses) / gains

(3)


752


(100.40%)


684


2,463


(72.23%)


Net loss on other real estate owned and other assets

(144)


(7)


(1957.14%)


(81)


(305)


73.44%


Other income

1,601


1,656


(3.32%)


5,456


5,103


6.92%




Total non-interest income

16,950


17,597


(3.68%)


69,285


64,775


6.96%

Non-interest expense













Salaries and wages

17,352


15,885


9.24%


65,431


58,913


11.06%


Employee benefits

5,774


5,924


(2.53%)


23,255


21,462


8.35%


Net occupancy

2,866


2,771


3.43%


11,809


10,905


8.29%


Equipment

2,768


2,604


6.30%


10,669


9,221


15.70%


Marketing

1,159


953


21.62%


5,174


4,235


22.17%


FDIC insurance

919


937


(1.92%)


3,725


3,899


(4.46%)


Amortization of intangible assets

546


570


(4.21%)


2,288


2,150


6.42%


Restructuring and merger-related expense

45


2,370


(98.10%)


1,310


3,888


(66.31%)


Other operating expenses

9,314


9,567


(2.64%)


37,337


35,447


5.33%




Total non-interest expense

40,743


41,581


(2.02%)


160,998


150,120


7.25%

Income before provision for income taxes

20,301


16,030


26.64%


84,688


63,132


34.14%


Provision for income taxes

4,948


3,380


46.39%


20,763


13,588


52.80%

Net Income

$ 15,353


$ 12,650


21.37%


$ 63,925


$ 49,544


29.03%
















Taxable equivalent net interest income

$ 49,058


$ 44,971


9.09%


$ 192,556


$ 175,027


10.02%
















Per common share data












Net income per common share - basic

$ 0.52


$ 0.46


13.04%


$ 2.18


$ 1.84


18.48%

Net income per common share - diluted

$ 0.52


$ 0.46


13.04%


$ 2.18


$ 1.84


18.48%

Dividends declared

$ 0.20


$ 0.18


11.11%


$ 0.78


$ 0.70


11.43%

Book value (period end)







$ 25.59


$ 24.45


4.66%

Tangible book value (period end) (1)







$ 14.68


$ 13.48


8.90%

Average common shares outstanding - basic

29,300,463


27,523,958


6.45%


29,270,922


26,867,227


8.95%

Average common shares outstanding - diluted

29,387,485


27,549,655


6.67%


29,344,683


26,888,847


9.13%

Period end common shares outstanding

29,175,236


29,214,660


(0.13%)


29,175,236


29,214,660


(0.13%)
















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









 

 

WESBANCO, INC.

















Consolidated Selected Financial Highlights














Page 5

(unaudited, dollars in thousands)


































Selected ratios
























For the Year Ended









December 31,










2013


2012


% Change


























Return on average assets





1.05

%

0.88

%

19.32

%







Return on average equity





8.72


7.54


15.65








Return on average tangible equity (1)




15.79


13.57


16.36








Yield on earning assets (2)





4.18


4.40


(5.00)








Cost of interest bearing liabilities




0.73


1.04


(29.81)








Net interest spread (2)





3.45


3.36


2.68








Net interest margin (2)





3.58


3.53


1.42








Efficiency (1) (2)






60.99


60.98


0.02








Average loans to average deposits




75.28


74.15


1.52








Annualized net loan charge-offs/average loans




0.38


0.66


(42.42)








Effective income tax rate





24.52


21.52


13.94






















































































For the Quarter Ended










Dec. 31,


Sept. 30,


June 30,


Mar. 31,


Dec. 31,










2013


2013


2013


2013


2012






















Return on average assets





0.99

%

1.01

%

1.12

%

1.07

%

0.87

%



Return on average equity





8.17


8.40


9.33


9.00


7.36




Return on average tangible equity (1)




14.60


15.20


16.88


16.55


13.06




Yield on earning assets (2)





4.09


4.13


4.20


4.31


4.27




Cost of interest bearing liabilities




0.63


0.73


0.77


0.81


0.93




Net interest spread (2)





3.46


3.40


3.43


3.50


3.34




Net interest margin (2)





3.58


3.52


3.56


3.64


3.50




Efficiency (1) (2)






61.66


61.45


60.25


60.59


62.67




Average loans to average deposits




75.79


76.16


75.27


73.86


74.40




Annualized net loan charge-offs/average loans




0.30


0.60


0.26


0.34


0.47




Effective income tax rate





24.37


23.92


26.63


22.88


21.09




Trust assets, market value at period end




$ 3,688,734


$ 3,501,873


$ 3,440,666


$ 3,451,124


$ 3,238,556






















(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 6


(unaudited, dollars in thousands, except shares)









% Change


Balance sheets


December 31,




September 30,

September 30, 2013


Assets



2013


2012


% Change


2013

to Dec. 31, 2013


Cash and due from banks


$ 80,001


$ 91,716


(12.77)

%

$ 140,234

(42.95)

%

Due from banks - interest bearing


15,550


33,889


(54.11)


5,405

187.70


Securities:












      Available-for-sale, at fair value


934,386


1,021,244


(8.51)


933,455

0.10


      Held-to-maturity (fair values of $596,308; $639,273 and $607,215, respectively)


598,520


602,509


(0.66)


602,588

(0.68)


            Total securities


1,532,906


1,623,753


(5.59)


1,536,043

(0.20)


Loans held for sale


5,855


21,903


(73.27)


6,601

(11.30)


Portfolio loans:











      Commercial real estate


1,912,919


1,858,345


2.94


1,867,782

2.42


      Commercial and industrial


556,249


478,025


16.36


544,202

2.21


      Residential real estate


890,804


793,702


12.23


879,703

1.26


      Home equity


284,687


277,226


2.69


283,488

0.42


      Consumer


250,258


280,464


(10.77)


261,363

(4.25)


Total portfolio loans, net of unearned income


3,894,917


3,687,762


5.62


3,836,538

1.52


Allowance for loan losses


(47,368)


(52,699)


10.12


(47,342)

(0.05)


            Net portfolio loans


3,847,549


3,635,063


5.85


3,789,196

1.54


Premises and equipment, net


93,157


88,866


4.83


92,696

0.50


Accrued interest receivable


18,960


19,354


(2.04)


19,903

(4.74)


Goodwill and other intangible assets, net


321,426


324,465


(0.94)


321,972

(0.17)


Bank-owned life insurance


121,390


119,671


1.44


120,457

0.77


Other assets


107,979


120,037


(10.05)


105,853

2.01


Total Assets


$ 6,144,773


$ 6,078,717


1.09

%

$ 6,138,360

0.10

%















Liabilities











Deposits:












      Non-interest bearing demand


$ 960,814


$ 874,923


9.82

%

$ 917,478

4.72

%

      Interest bearing demand


857,761


831,368


3.17


870,319

(1.44)


      Money market


942,768


847,805


11.20


858,422

9.83


      Savings deposits


789,709


740,568


6.64


775,776

1.80


      Certificates of deposit


1,511,478


1,649,620


(8.37)


1,638,447

(7.75)


            Total deposits


5,062,530


4,944,284


2.39


5,060,442

0.04


Federal Home Loan Bank borrowings


39,508


111,187


(64.47)


59,918

(34.06)


Other short-term borrowings


150,536


142,971


5.29


124,179

21.23


Junior subordinated debt owed to unconsolidated subsidiary trusts


106,137


113,832


(6.76)


106,127

0.01


            Total borrowings


296,181


367,990


(19.51)


290,224

2.05


Accrued interest payable


2,354


3,856


(38.95)


3,535

(33.41)


Other liabilities


37,113


48,403


(23.33)


47,471

(21.82)


Total Liabilities


5,398,178


5,364,533


0.63


5,401,672

(0.06)
















Shareholders' Equity











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











      none outstanding


-


-


-


-

-


Common stock, $2.0833 par value; 50,000,000 shares authorized;











      29,367,511 shares; 26,214,660 shares and 29,350,061 shares issued, respectively;











      29,175,236 shares; 29,214,660 shares and 29,350,061 shares outstanding, respectively


61,182


60,863


0.52


61,144

0.06


Capital surplus


244,974


241,672


1.37


244,352

0.25


Retained earnings


460,351


419,246


9.80


450,833

2.11


Treasury stock (192,275; 0 and 0 shares - at cost,











      respectively)


(5,969)


-


(100.00)


-

(100.00)


Accumulated other comprehensive loss


(12,734)


(6,365)


(100.06)


(18,442)

30.95


Deferred benefits for directors


(1,209)


(1,232)


1.87


(1,199)

(0.83)


Total Shareholders' Equity


746,595


714,184


4.54


736,688

1.34


Total Liabilities and Shareholders' Equity


$ 6,144,773


$ 6,078,717


1.09

%

$ 6,138,360

0.10

%

 

 

WESBANCO, INC.















Consolidated Selected Financial Highlights












Page 7

(unaudited, dollars in thousands)














Average balance sheet and















net interest margin analysis




Three Months Ended December 31,


Year Ended December 31,






2013

2012


2013

2012






Average

Average


Average

Average


Average

Average


Average

Average

Assets





Balance

Rate


Balance

Rate


Balance

Rate


Balance

Rate

Due from banks - interest bearing



$ 42,415

0.25%


$ 22,277

0.36%


$ 37,556

0.22%


$ 26,865

0.25%

Loans, net of unearned income (1)



3,859,211

4.48%


3,463,911

4.86%


3,772,172

4.65%


3,323,078

5.02%

Securities: (2)
















      Taxable





1,137,977

2.52%


1,275,530

2.41%


1,175,865

2.48%


1,270,446

2.56%

      Tax-exempt (3)





400,049

5.20%


340,788

5.65%


384,069

5.26%


323,885

5.89%

            Total securities





1,538,026

3.23%


1,616,318

3.09%


1,559,934

3.17%


1,594,331

3.23%

Other earning assets





12,200

1.84%


17,158

0.82%


15,165

1.07%


19,621

0.52%

            Total earning assets (3)



5,451,852

4.09%


5,119,664

4.27%


5,384,827

4.18%


4,963,895

4.40%

Other assets





728,851



641,331



724,484



642,491


Total Assets





$ 6,180,703



$ 5,760,995



$ 6,109,311



$ 5,606,386


















Liabilities and Shareholders' Equity














Interest bearing demand deposits



$ 869,568

0.17%


$ 814,894

0.19%


$ 858,679

0.16%


$ 755,908

0.20%

Money market accounts




931,309

0.19%


800,059

0.20%


867,473

0.17%


781,400

0.28%

Savings deposits





782,895

0.07%


679,646

0.10%


770,687

0.07%


645,310

0.13%

Certificates of deposit




1,556,305

1.12%


1,558,594

1.61%


1,607,918

1.37%


1,547,379

1.70%

      Total interest bearing deposits



4,140,077

0.51%


3,853,193

0.75%


4,104,757

0.62%


3,729,997

0.83%

Federal Home Loan Bank borrowings



53,508

1.86%


92,264

3.40%


62,344

1.85%


130,048

3.44%

Other borrowings





132,191

1.88%


178,809

2.17%


142,992

1.77%


191,534

2.34%

Junior subordinated debt




106,132

3.03%


108,673

3.08%


107,665

3.08%


106,727

3.22%

      Total interest bearing liabilities



4,431,908

0.63%


4,232,939

0.93%


4,417,758

0.73%


4,158,306

1.04%

Non-interest bearing demand deposits



951,809



802,385



905,921



751,345


Other liabilities





51,850



41,977



52,383



40,051


Shareholders' equity





745,136



683,694



733,249



656,684


Total Liabilities and Shareholders' Equity



$ 6,180,703



$ 5,760,995



$ 6,109,311



$ 5,606,386


Taxable equivalent net interest spread




3.46%



3.34%



3.45%



3.36%

Taxable equivalent net interest margin




3.58%



3.50%



3.58%



3.53%

















(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 are$0.8 million and $1.0 million for the three months ended December 31, 2013 and 2012,




      and $3.8 million and $4.0 million for the year ended December 31, 2013 and 2012, respectively.








      Additionally, loan accretion included in interest income on acquired Fidelity loans was $0.4 million for the three months





      ended December 31, 2013 and $2.7 million for the year ended December 31, 2013, while accretion on acquired Fidelity interest bearing liabilities




      was $0.4 million for the three months ended December 31, 2013 and $1.7 million for the year ended December 31, 2013.





(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 35% for each period presented.







 

 

WESBANCO, INC.










Consolidated Selected Financial Highlights









Page 8

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














Quarter Ended

Statement of Income

Dec. 31,


Sept. 30,


June 30,


Mar. 31,


Dec. 31,

Interest income

2013


2013


2013


2013


2012


Loans, including fees

$ 43,617


$ 43,678


$ 43,753


$ 44,276


$ 42,311


Interest and dividends on securities:












Taxable

7,178


7,226


7,357


7,433


7,677



Tax-exempt

3,380


3,355


3,264


3,127


3,129




Total interest and dividends on securities

10,558


10,581


10,621


10,560


10,806


Other interest income

82


58


50


56


55

               Total interest and dividend income

54,257


54,317


54,424


54,892


53,172

Interest expense











Interest bearing demand deposits

380


369


365


301


395


Money market deposits

440


345


338


339


397


Savings deposits

130


128


127


141


168


Certificates of deposit

4,383


5,597


5,881


6,148


6,321




Total interest expense on deposits

5,333


6,439


6,711


6,929


7,281


Federal Home Loan Bank borrowings

251


291


289


319


789


Other short-term borrowings

625


651


627


623


976


Junior subordinated debt owed to unconsolidated subsidiary trusts

810


805


808


893


840




Total interest expense

7,019


8,186


8,435


8,764


9,886

Net interest income

47,238


46,131


45,989


46,128


43,286


Provision for credit losses

3,144


2,819


1,021


2,102


3,272

Net interest income after provision for credit losses

44,094


43,312


44,968


44,026


40,014

Non-interest income











Trust fees

4,883


4,854


4,823


5,018


4,655


Service charges on deposits

4,616


4,650


4,462


4,197


4,565


Electronic banking fees

3,012


3,124


3,195


2,866


2,807


Net securities brokerage revenue

1,604


1,506


1,641


1,497


1,284


Bank-owned life insurance

925


911


880


1,949


870


Net gains on sales of mortgage loans

456


745


701


712


1,015


Net securities (losses) / gains

(3)


(15)


686


16


752


Net loss on other real estate owned and other assets

(144)


8


101


(46)


(7)


Other income

1,601


1,333


1,235


1,287


1,656




Total non-interest income

16,950


17,116


17,724


17,496


17,597

Non-interest expense











Salaries and wages

17,352


16,480


15,772


15,826


15,885


Employee benefits

5,774


5,323


5,813


6,345


5,924


Net occupancy

2,866


2,921


2,830


3,192


2,771


Equipment

2,768


2,692


2,802


2,407


2,604


Marketing

1,159


1,585


1,624


805


953


FDIC insurance

919


916


919


971


937


Amortization of intangible assets

546


556


561


625


570


Restructuring and merger-related expense

45


36


51


1,178


2,370


Other operating expenses

9,314


9,500


9,127


9,398


9,567




Total non-interest expense

40,743


40,009


39,499


40,747


41,581

Income before provision for income taxes

20,301


20,419


23,193


20,775


16,030


Provision for income taxes

4,948


4,884


6,176


4,754


3,380

Net Income

$ 15,353


$ 15,535


$ 17,017


$ 16,021


$ 12,650














Taxable equivalent net interest income

$ 49,058


$ 47,938


$ 47,747


$ 47,812


$ 44,971














Per common share data










Net income per common share - basic

$ 0.52


$ 0.53


$ 0.58


$ 0.55


$ 0.46

Net income per common share - diluted

$ 0.52


$ 0.53


$ 0.58


$ 0.55


$ 0.46

Dividends declared

$ 0.20


$ 0.20


$ 0.19


$ 0.19


$ 0.18

Book value (period end)

$ 25.59


$ 25.10


$ 24.80


$ 24.80


$ 24.45

Tangible book value (period end) (1)

$ 14.68


$ 14.25


$ 13.91


$ 13.87


$ 13.48

Average common shares outstanding - basic

29,300,463


29,325,128


29,245,201


29,211,321


27,523,958

Average common shares outstanding - diluted

29,387,485


29,412,458


29,308,806


29,268,483


27,549,655

Period end common shares outstanding

29,175,236


29,350,061


29,282,412


29,214,018


29,214,660

Full time equivalent employees

1,469


1,462


1,478


1,448


1,507



























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







 

 

WESBANCO, INC.












Consolidated Selected Financial Highlights









Page 9


(unaudited, dollars in thousands)
















Quarter Ended






Dec. 31,


Sept. 30,


June 30,


Mar. 31,


Dec. 31,


Asset quality data


2013


2013


2013


2013


2012


Non-performing assets:













Troubled debt restructurings - accruing


$ 14,861


$ 15,480


$ 19,269


$ 20,420


$ 24,281



Non-accrual loans:














Troubled debt restructurings


9,324


12,920


15,655


17,106


15,001




Other non-accrual loans


27,309


25,240


27,414


25,620


24,371




      Total non-accrual loans


36,633


38,160


43,069


42,726


39,372




      Total non-performing loans


51,494


53,640


62,338


63,146


63,653



Other real estate and repossessed assets


4,860


5,184


5,007


5,147


5,988




Total non-performing assets


$ 56,354


$ 58,824


$ 67,345


$ 68,293


$ 69,641
















Past due loans (1):













Loans past due 30-89 days


$ 14,831


$ 15,611


$ 15,792


$ 14,507


$ 22,543



Loans past due 90 days or more


2,591


3,043


3,594


4,345


5,294




Total past due loans


$ 17,422


$ 18,654


$ 19,386


$ 18,852


$ 27,837
















Criticized and classified loans (2):













Criticized loans


$ 75,249


$ 76,442


$ 78,457


$ 84,146


$ 86,777



Classified loans


60,335


64,857


80,621


83,988


85,960




Total criticized and classified loans


$ 135,584


$ 141,299


$ 159,078


$ 168,134


$ 172,737
















Loans past due 30-89 days / total loans


0.38

%

0.41

%

0.42

%

0.39

%

0.61

%

Loans past due 90 days or more / total loans


0.07


0.08


0.09


0.12


0.14


Non-performing loans / total loans


1.32


1.40


1.64


1.71


1.73


Non-performing assets/total loans, other













real estate and repossessed assets


1.45


1.53


1.77


1.85


1.89


Criticized and classified loans / total loans


3.48


3.68


4.18


4.56


4.68
















Allowance for loan losses












Allowance for loan losses


$ 47,368


$ 47,342


$ 50,381


$ 51,664


$ 52,699


Provision for credit losses


3,144


2,819


1,021


2,102


3,272


Net loan and deposit account overdraft charge-offs

2,887


5,804


2,433


3,032


4,124
















Annualized net loan charge-offs /average loans

0.30

%

0.60

%

0.26

%

0.34

%

0.47

%

Allowance for loan losses / portfolio loans


1.22

%

1.23

%

1.33

%

1.40

%

1.43

%

Allowance for loan losses / non-performing loans

0.92

x

0.88

x

0.81

x

0.82

x

0.83

x

Allowance for loan losses / non-performing loans and












loans past due


0.69

x

0.65

x

0.62

x

0.63

x

0.59

x

































Quarter Ended






Dec. 31,


Sept. 30,


June 30,


Mar. 31,


Dec. 31,






2013


2013


2013


2013


2012


Capital ratios












Tier I leverage capital


9.27

%

9.27

%

9.13

%

8.92

%

9.34

%

Tier I risk-based capital


13.06


13.08


12.85


12.88


12.82


Total risk-based capital


14.19


14.23


14.08


14.13


14.07


Average shareholders' equity to average assets

12.06


11.99


12.05


11.91


11.87


Tangible equity to tangible assets (3)


7.35


7.19


7.07


7.03


6.84






























(1) Excludes non-performing loans.












(2) Criticized and classified loans may include loans that are also reported as non-performing or past due.






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






 

 

NON-GAAP FINANCIAL MEASURES












Page 10

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





Three Months Ended


Year to Date





Dec. 31,


Sept. 30,


June 30,


Mar. 31,


Dec. 31,


Dec. 31,

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

2013


2013


2013


2013


2012


2013

2012

Return on average tangible equity:














Net income (annualized)


$ 60,911


$ 61,634


$ 68,256


$ 64,974


$ 50,325


$ 63,925

$ 49,544


Plus: amortization of intangibles (annualized) (1)

1,408


1,434


1,464


1,647


1,473


1,487

1,398


Net income before amortization of intangibles (annualized)

62,319


63,068


69,720


66,621


51,798


65,412

50,942


















Average total shareholders' equity

745,136


733,462


731,935


722,211


683,694


733,249

656,684


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

(318,333)


(318,661)


(318,971)


(319,706)


(287,008)


(318,913)

(281,326)


Average tangible equity


426,803


414,801


412,964


402,505


396,686


414,336

375,358

















Return on average tangible equity


14.60%


15.20%


16.88%


16.55%


13.06%


15.79%

13.57%

















Net Income, excluding restructuring and merger-related expenses per diluted share:














Net income



$ 15,353


$ 15,535


$ 17,017


$ 16,021


$ 12,650


$ 63,925

$ 49,544


Add: Restructuring and merger-related expenses, net of tax (1)

29


23


33


766


1,541


852

2,527


Net income, excluding restructuring and merger-related expenses

$ 15,382


$ 15,558


$ 17,050


$ 16,787


$ 14,191


$ 64,777

$ 52,071


















Average common shares outstanding - diluted

29,387,485


29,412,458


29,308,806


29,268,483


27,549,655


29,344,683

26,888,847

















Net income, excluding restructuring and merger-related expense per diluted share

$ 0.52


$ 0.53


$ 0.58


$ 0.57


$ 0.52


$ 2.21

$ 1.94





















Period End








Dec. 31,


Sept. 30,


June 30,


Mar. 31,


Dec. 31,








2013


2013


2013


2013


2012




Tangible book value:















Total shareholders' equity


$ 746,595


$ 736,688


$ 726,232


$ 724,409


$ 714,184





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

(318,161)


(318,516)


(318,828)


(319,156)


(320,399)





Tangible equity


428,434


418,172


407,404


405,253


393,785





















Common shares outstanding


29,175,236


29,350,061


29,282,412


29,214,018


29,214,660




















Tangible book value



$ 14.68


$ 14.25


$ 13.91


$ 13.87


$ 13.48




































Tangible equity to tangible assets:














Total shareholders' equity


$ 746,595


$ 736,688


$ 726,232


$ 724,409


$ 714,184





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

(318,161)


(318,516)


(318,828)


(319,156)


(320,399)





Tangible equity


428,434


418,172


407,404


405,253


393,785





















Total assets



6,144,773


6,138,360


6,084,011


6,085,448


6,078,717





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

(318,161)


(318,516)


(318,828)


(319,156)


(320,399)





Tangible assets


5,826,611


5,819,844


5,765,183


5,766,292


5,758,318




















Tangible equity to tangible assets


7.35%


7.19%


7.07%


7.03%


6.84%


































































































Efficiency ratio:















Efficiency ratio is calculated by dividing non-interest expense less restructuring and merger related expenses by the sum of net interest income on a fully taxable equivalent basis plus non-interest income.

















(1) Tax effected at 35%.














 

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