WesBanco Announces Increased Earnings

WHEELING, W.Va., July 24, 2012 /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 increased earnings for the three and six months ended June 30, 2012.

Net income for the six month period ended June 30, 2012, was $24.0 million compared to $22.2 million for the same period in 2011, representing an increase of 8.3%, while diluted earnings per share were $0.90, compared to $0.83 per share for the six months ended June 30, 2011. For the quarter ended June 30, 2012, net income was $12.0 million compared to $11.9 million for the second quarter of 2011, while diluted earnings per share were $0.45 for the second quarter of 2012 and 2011.

Mr. Limbert commented, "WesBanco continued to produce strong earnings in the first half of 2012 by increasing non-interest income, reducing the cost of funds and controlling non-interest expense.

"Additionally, our focus on enhancing the loan origination network and processes have resulted in significant increases in new loan production and loan growth in 2012 while at the same time consistently improving credit quality. We are pleased with our results in this area, with our many successes in the first six months of 2012 and with the recent announcement of the pending merger of WesBanco and Fidelity Bancorp, Inc. ("Fidelity").  We look forward to servicing the customers and providing opportunities for the employees of Fidelity in the future, and expanding our presence in the Pittsburgh market."    

Net Interest Income

Net interest income decreased $1.2 million or 1.4% in the first half of 2012 and $1.5 million in the second quarter compared to the same periods in 2011 due to the low interest rate environment. However, average earning assets increased $130.9 million or 2.7% in the year-to-date period and 2.3% in the second quarter, including growth in portfolio loans while the cost of funds continued to improve as a result of lower rates on certificates of deposit, growth in non-interest bearing and lower-cost demand deposits, and a reduction in higher cost FHLB borrowings. The net interest margin was 3.53% in the second quarter of 2012 and was relatively stable in the first two quarters of 2012 compared to the fourth quarter of 2011, but declined by 15 basis points compared to the first half of 2011, as the low interest rate environment resulted in reduced rates earned on the securities and loan portfolios.

Provision and Allowance for Credit Losses

The provision for credit losses decreased $0.9 million for the second quarter to $5.9 million and $2.7 million for the first six months of 2012 to $12.1 million compared to the same periods of 2011, and $0.3 million compared to the first quarter of 2012.  Improvement in credit quality over the last four quarters resulted in the strengthening of coverage ratios while also supporting the lower provision for credit losses in the first two quarters of 2012.  The allowance for loan losses to non-performing loans, and the allowance for loan losses to the total of non-performing loans and loans past due, were both at their highest levels in the last six quarters.

Classified and criticized loans at June 30, 2012 decreased $82.5 million or 27.0% from June 30, 2011, and $13.8 million or 5.8% from March 31, 2012 to $223.3 million.  Total non-performing loans at June 30, 2012 decreased $30.4 million or 30.8% from June 30, 2011, and $12.9 million or 15.9% from March 31, 2012 to $68.1 million.  Net charge-offs in the 2012 second quarter of $6.8 million included $2.2 million relating to the sale of $5.1 million of non-performing loans; however, net charge-offs increased only $0.2 million from the first quarter of 2012 and were relatively the same as the second quarter of 2011. Loans past due 30 days or more and accruing interest at June 30, 2012 decreased $7.0 million or 27.2% compared to June 30, 2011 and represent 0.57% of total portfolio loans.

Non-Interest Income and Non-Interest Expense

Non-interest income increased $1.7 million or 5.7% in the first half of 2012 and $0.9 million or 5.9% in the second quarter compared to the same periods in 2011 principally due to net security gains of $1.4 million year-to-date and $1.3 million in the second quarter.  Electronic banking fees increased 18.2% in the first half and 15.7% in the second quarter of 2012 due to increased transaction volumes, and increased transaction account balances and net gain (loss) on other real estate owned improved $0.6 million in the year-to-date period.  These improvements were partially offset by decreases in service charges on deposits of $0.9 million in the first six months and $0.7 million in the second quarter of 2012, primarily from decreases in customer overdraft fees.  Non-interest expense increased by a moderate 0.8% in the first six months of 2012 compared to the same period in 2011 as reduced FDIC insurance of $0.7 million, due to a new calculation by the FDIC effective in April of 2011, and reductions in many other expense categories were offset by increased salaries and wages due to routine annual adjustments to compensation and increased pension and health plan expense.

Financial Condition

Total assets at June 30, 2012 increased 1.8% or $99.5 million in the last twelve months and were nearly unchanged from the prior year-end.  Increases over the last year were primarily from increased investments in securities, funded by increases in deposits.  Portfolio loans increased $52.1 million in the second quarter compared to the first quarter of 2012 and $36.5 million compared to the prior year-end as a result of growth in commercial and commercial real estate lending in the current quarter and residential mortgage loans in both quarters of 2012.  Loan production increased 30.6% in the first half of 2012 compared to the first half of 2011. 

WesBanco continued to strengthen its regulatory capital ratios with tier I leverage at 8.94%, tier I risk-based capital at 13.11%, and total risk-based capital at 14.36%, all of which consistently improved over the last two and a half years.  Both consolidated and bank-level regulatory capital ratios are well above the applicable "well-capitalized" standards promulgated by bank regulators.  Total tangible equity to tangible assets (non-GAAP measure) was 7.00% at June 30, 2012, a 41 basis point increase from a year ago.  WesBanco increased its quarterly dividend to $0.15 per share in February 2011, to $0.16 per share in August 2011 and to $0.17 per share in February of 2012.

On July 19, 2012 WesBanco and Fidelity, a Pittsburgh-based bank with $0.7 billion in assets and 13 branches, jointly announced that a definitive Agreement and Plan of Merger was executed providing for the merger of Fidelity with and into WesBanco. Under the terms of the Agreement and Plan of Merger, WesBanco will exchange 0.8275 shares of its common stock and $4.50 in cash for each share of Fidelity common stock. The receipt by Fidelity shareholders of shares of WesBanco common stock in exchange for their shares of Fidelity common stock is anticipated to qualify as a tax-free exchange. WesBanco expects the combination to be accretive to 2013 earnings per share, excluding merger-related expenses. The transaction, approved by the directors of both companies, currently is valued at $70.8 million, based on WesBanco's current common stock price and Fidelity's diluted shares outstanding. The acquisition is subject to the approvals of the appropriate banking regulatory authorities and the shareholders of Fidelity. It is expected that the transaction will be completed late in the fourth quarter of 2012 or early 2013.

WesBanco is a multi-state bank holding company with total assets of approximately $5.5 billion, operating through 112 branch locations and 104 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, 2011 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, 2012, 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 may not be fully realized within the expected timeframes; disruption from the merger 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, Financial Institution Regulatory Authority, Municipal Securities Rulemaking Board, 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.

Additional Information About the Merger and Where to Find It

In connection with the proposed Merger, WesBanco will file with the SEC a Registration Statement on Form S-4 that will include a Proxy Statement of Fidelity and a Prospectus of WesBanco, as well as other relevant documents concerning the proposed transaction. INVESTORS AND OTHER INTERESTED PARTIES ARE URGED TO READ THE REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS REGARDING THE MERGER WHEN IT BECOMES AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. The Proxy Statement/Prospectus will be mailed to shareholders of Fidelity prior to the Fidelity shareholder meeting, which has not yet been scheduled. In addition, when the Registration Statement on Form S-4, which will include the Proxy Statements/Prospectus, and other related documents is filed by WesBanco with the SEC, it may be obtained for free at the SEC's website at http://www.sec.gov, on the NASDAQ website at http://www.nasdaq.com and from either WesBanco's or Fidelity's website at http://www.wesbanco.com or http://www.fidelitybancorp-pa.com, respectively.

WesBanco and Fidelity and their respective executive officers and directors may be deemed to be participants in the solicitation of proxies from the shareholders of Fidelity in connection with the proposed Merger. Information about the directors and executive officers of Fidelity will be included in the Proxy Statement/Prospectus and may be found in the proxy statement for Fidelity's annual meeting of shareholders filed with the SEC on January 11, 2012. Information about any other persons who may, under the rules of the SEC, be considered participants in the solicitation of Fidelity shareholders in connection with the proposed Merger will be included in the Proxy Statement/Prospectus. You can find information about WesBanco's directors and executive officers in the proxy statement for WesBanco's annual meeting of shareholders filed with the SEC on March 14, 2012. You can obtain free copies of these documents from the SEC, WesBanco or Fidelity using the website information above.

INVESTORS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS CAREFULLY WHEN IT BECOMES AVAILABLE BEFORE MAKING ANY VOTING OR INVESTMENT DECISIONS WITH RESPECT TO THE PROPOSED MERGER.

This communication shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities.

 

 

WESBANCO, INC.

Consolidated Selected Financial Highlights

Page 3

(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

2012


2011


% Change


2012


2011


% Change


Loans, including fees

$             40,957


$           44,511


(7.98%)


$         82,922


$           88,859


(6.68%)


Interest and dividends on securities:














Taxable 

8,471


9,431


(10.18%)


17,061


18,139


(5.94%)



Tax-exempt

3,079


3,046


1.08%


6,158


6,032


2.09%




Total interest and dividends on securities

11,550


12,477


(7.43%)


23,219


24,171


(3.94%)


Other interest income 

38


54


(29.63%)


85


109


(22.02%)

           Total interest and dividend income

52,545


57,042


(7.88%)


106,226


113,139


(6.11%)

Interest Expense













Interest bearing demand deposits

393


579


(32.12%)


734


1,211


(39.39%)


Money market deposits

493


1,130


(56.37%)


1,299


2,572


(49.49%)


Savings deposits

200


349


(42.69%)


495


837


(40.86%)


Certificates of deposit

6,621


7,929


(16.50%)


13,600


15,980


(14.89%)




Total interest expense on deposits

7,707


9,987


(22.83%)


16,128


20,600


(21.71%)


Federal Home Loan Bank borrowings

1,288


2,003


(35.70%)


2,665


4,028


(33.84%)


Other short-term borrowings

1,156


1,188


(2.69%)


2,334


2,370


(1.52%)


Junior subordinated debt owed to unconsolidated subsidiary trusts

854


811


5.30%


1,728


1,612


7.20%




Total interest expense

11,005


13,989


(21.33%)


22,855


28,610


(20.12%)

Net interest income 

41,540


43,053


(3.51%)


83,371


84,529


(1.37%)


Provision for credit losses

5,903


6,802


(13.22%)


12,105


14,843


(18.45%)

Net interest income after provision for credit losses

35,637


36,251


(1.69%)


71,266


69,686


2.27%

Non-interest income













Trust fees

4,258


4,272


(0.33%)


9,011


9,034


(0.25%)


Service charges on deposits

4,218


4,889


(13.72%)


8,211


9,111


(9.88%)


Electronic banking fees

2,920


2,523


15.74%


5,683


4,807


18.22%


Net securities brokerage revenue

1,114


1,088


2.39%


2,189


2,184


0.23%


Bank-owned life insurance

874


900


(2.89%)


1,754


1,794


(2.23%)


Net gains on sales of mortgage loans

599


389


53.98%


867


971


(10.71%)


Net securities gains

1,294


14


NM


1,394


30


NM


Net loss on other real estate owned and other assets

(282)


(271)


(4.06%)


(250)


(816)


69.36%


Other income

899


1,212


(25.83%)


2,356


2,406


(2.08%)




Total non-interest income

15,894


15,016


5.85%


31,215


29,521


5.74%

Non-interest expense













Salaries and wages

13,955


13,959


(0.03%)


28,270


27,612


2.38%


Employee benefits

4,920


4,249


15.79%


10,538


9,405


12.05%


Net occupancy

2,703


2,461


9.83%


5,479


5,382


1.80%


Equipment 

2,144


2,145


(0.05%)


4,318


4,444


(2.84%)


Marketing

1,716


1,642


4.51%


2,487


2,647


(6.04%)


FDIC insurance 

965


1,015


(4.93%)


2,011


2,669


(24.65%)


Amortization of intangible assets

524


605


(13.39%)


1,061


1,223


(13.25%)


Other operating expenses  

9,157


9,627


(4.88%)


17,585


17,812


(1.27%)




Total non-interest expense

36,084


35,703


1.07%


71,749


71,194


0.78%

Income before provision for income taxes

15,447


15,564


(0.75%)


30,732


28,013


9.71%


Provision for income taxes 

3,449


3,646


(5.40%)


6,744


5,854


15.20%

Net income

$             11,998


$           11,918


0.67%


$         23,988


$           22,159


8.25%
















Taxable equivalent net interest income

$            43,197


$         44,693


(3.35%)


$         86,687


$         87,777


(1.24%)
















Per common share data












Net income per common share - basic

$                 0.45


$               0.45


0.00%


$              0.90


$               0.83


8.43%

Net income per common share - diluted

$                 0.45


$               0.45


0.00%


$              0.90


$               0.83


8.43%

Dividends declared

$                 0.17


$               0.15


13.33%


$              0.34


$               0.30


13.33%

Book value (period end)







$            24.34


$             23.40


4.02%

Tangible book value (period end) (1)







$            13.76


$             12.72


8.18%

Average common shares outstanding - basic

26,647,050


26,610,450


0.14%


26,637,537


26,599,791


0.14%

Average common shares outstanding - diluted

26,650,325


26,611,409


0.15%


26,640,879


26,601,088


0.15%

Period end common shares outstanding

26,664,644


26,629,360


0.13%


26,664,644


26,629,360


0.13%
















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




NM - Not Meaningful.












 

WESBANCO, INC.

Consolidated Selected Financial Highlights



Page 4



(unaudited, dollars in thousands)




















Selected ratios












For the Six Months Ended




June 30,





2012


2011


% Change





















Return on average assets

0.87

%

0.83

%

4.82

%







Return on average equity

7.50


7.27


3.16








Return on average tangible equity (1)

13.75


14.02


(1.93)








Yield on earning assets (2) 

4.48


4.91


(8.76)








Cost of interest bearing liabilities

1.11


1.40


(20.71)








Net interest spread (2)

3.37


3.51


(3.99)








Net interest margin (2)

3.55


3.70


(4.05)








Efficiency (2) 

60.85


60.69


0.26








Average loans to average deposits

73.62


77.26


(4.71)








Annualized net loan charge-offs/average loans

0.83


0.94


(11.70)








Effective income tax rate 

21.95


20.90


5.02





























































For the Quarter Ended





June 30,


Mar. 31,


Dec. 31,


Sept. 30,


June 30,





2012


2012


2011


2011


2011

















Return on average assets

0.87

%

0.87

%

0.77

%

0.80

%

0.88

%



Return on average equity

7.45


7.54


6.61


6.92


7.71




Return on average tangible equity (1)

13.57


13.93


12.31


13.03


14.73




Yield on earning assets (2) 

4.43


4.54


4.61


4.78


4.90




Cost of interest bearing liabilities

1.07


1.14


1.22


1.28


1.35




Net interest spread (2)

3.36


3.40


3.39


3.50


3.55




Net interest margin (2)

3.53


3.57


3.56


3.67


3.73




Efficiency (2) 

61.06


60.64


59.81


56.84


59.79




Average loans to average deposits

73.35


73.88


74.31


76.55


76.47




Annualized net loan charge-offs/average loans

0.84


0.82


1.22


2.11


0.85




Effective income tax rate 

22.33


21.56


15.42


15.65


23.43




Trust Assets, market value at period end

$     3,133,741


$        3,164,235


$        2,973,352


$        2,789,218


$        3,029,320

















(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 5


(unaudited, dollars in thousands, except shares)


% Change


Balance sheets


June 30,




December 31,

December 31, 2011


Assets


2012


2011


% Change


2011

to June 30, 2012


Cash and due from banks


$          99,930


$          73,563


35.84

%

$              129,396

(22.77)

%

Due from banks - interest bearing


2,885


9,782


(70.51)


10,929

(73.60)


Securities:












Available-for-sale, at fair value


1,023,124


938,342


9.04


1,016,340

0.67



Held-to-maturity (fair values of $607,032; $596,341 and $621,472, respectively)


572,671


586,353


(2.33)


592,925

(3.42)



      Total securities


1,595,795


1,524,695


4.66


1,609,265

(0.84)


Loans held for sale


7,305


4,205


73.72


6,084

20.07


Portfolio Loans:












Commercial real estate


1,695,045


1,733,753


(2.23)


1,685,565

0.56



Commercial and industrial


420,689


429,162


(1.97)


426,315

(1.32)



Residential real estate 


662,556


598,720


10.66


621,383

6.63



Home equity


250,988


250,678


0.12


251,785

(0.32)



Consumer 


246,552


250,733


(1.67)


254,320

(3.05)


Total portfolio loans, net of unearned income


3,275,830


3,263,046


0.39


3,239,368

1.13


Allowance for loan losses


(53,610)


(61,418)


12.71


(54,810)

2.19



    Net portfolio loans


3,222,220


3,201,628


0.64


3,184,558

1.18


Premises and equipment, net


80,668


84,325


(4.34)


82,204

(1.87)


Accrued interest receivable


18,233


20,683


(11.85)


19,268

(5.37)


Goodwill and other intangible assets, net


282,088


284,336


(0.79)


283,150

(0.38)


Bank-owned life insurance


111,829


108,296


3.26


110,074

1.59


Other assets


104,452


114,394


(8.69)


101,102

3.31


Total Assets


$    5,525,405


$   5,425,907


1.83

%

$         5,536,030

(0.19)

%













Liabilities











Deposits:











Non-interest bearing demand


$         759,779


$        629,429


20.71

%

$              705,415

7.71

%


Interest bearing demand


728,521


595,447


22.35


698,114

4.36



Money market


753,964


798,289


(5.55)


789,036

(4.44)



Savings deposits


646,385


570,274


13.35


596,549

8.35



Certificates of deposit


1,505,133


1,627,900


(7.54)


1,604,752

(6.21)



    Total deposits


4,393,782


4,221,339


4.09


4,393,866

(0.00)


Federal Home Loan Bank borrowings


141,877


226,897


(37.47)


168,186

(15.64)


Other short-term borrowings


191,275


208,704


(8.35)


196,887

(2.85)


Junior subordinated debt owed to unconsolidated subsidiary trusts


106,083


106,050


0.03


106,066

0.02



    Total borrowings


439,235


541,651


(18.91)


471,139

(6.77)


Accrued interest payable


4,741


5,906


(19.73)


4,975

(4.70)


Other liabilities


38,535


33,974


13.42


32,260

19.45


Total liabilities


4,876,293


4,802,870


1.53


4,902,240

(0.53)














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;












26,667,739 shares; 26,633,848 shares and 26,633,848 shares issued, respectively; 












26,664,644 shares; 26,629,360 shares and 26,629,360 shares outstanding, respectively


55,558


55,487


0.13


55,487

0.13


Capital surplus


191,926


191,263


0.35


191,679

0.13


Retained earnings


403,746


375,689


7.47


388,818

3.84


Treasury stock (3,095; 4,488 and 4,488 shares - at cost, 












respectively)


(61)


(96)


36.46


(96)

36.46


Accumulated other comprehensive income


(843)


1,875


(144.96)


(902)

6.54


Deferred benefits for directors


(1,214)


(1,181)


(2.79)


(1,196)

(1.51)


Total Shareholders' Equity


649,112


623,037


4.19


633,790

2.42


Total Liabilities and Shareholders' Equity


$    5,525,405


$   5,425,907


1.83

%

$         5,536,030

(0.19)

%















 

WESBANCO, INC.




Consolidated Selected Financial Highlights

Page 6


(unaudited, dollars in thousands, except shares)


Balance sheets


June 30,

March 31,



Assets


2012


2012

% Change


Cash and due from banks


$          99,930


$              152,817

(34.61)

%

Due from banks - interest bearing


2,885


4,426

(34.82)


Securities:








Available-for-sale, at fair value


1,023,124


1,087,836

(5.95)



Held-to-maturity (fair values of $607,032 and $608,186, respectively)


572,671


577,923

(0.91)



      Total securities


1,595,795


1,665,759

(4.20)


Loans held for sale


7,305


8,611

(15.17)


Portfolio Loans:








Commercial real estate


1,695,045


1,675,341

1.18



Commercial and industrial


420,689


410,369

2.51



Residential real estate 


662,556


637,879

3.87



Home equity


250,988


250,757

0.09



Consumer 


246,552


249,351

(1.12)


Total portfolio loans, net of unearned income


3,275,830


3,223,697

1.62


Allowance for loan losses


(53,610)


(54,395)

1.44



      Net portfolio loans


3,222,220


3,169,302

1.67


Premises and equipment, net


80,668


81,592

(1.13)


Accrued interest receivable


18,233


19,501

(6.50)


Goodwill and other intangible assets, net


282,088


282,612

(0.19)


Bank-owned life insurance


111,829


110,954

0.79


Other assets


104,452


105,069

(0.59)


Total Assets


$    5,525,405


$         5,600,643

(1.34)

%









Liabilities







Deposits:








Non-interest bearing demand


$         759,779


$              749,733

1.34

%


Interest bearing demand


728,521


706,117

3.17



Money market


753,964


825,577

(8.67)



Savings deposits


646,385


633,504

2.03



Certificates of deposit


1,505,133


1,558,926

(3.45)



      Total deposits


4,393,782


4,473,857

(1.79)


Federal Home Loan Bank borrowings


141,877


147,913

(4.08)


Other short-term borrowings


191,275


187,632

1.94


Junior subordinated debt owed to unconsolidated subsidiary trusts


106,083


106,074

0.01



      Total borrowings


439,235


441,619

(0.54)


Accrued interest payable


4,741


5,007

(5.31)


Other liabilities


38,535


38,159

0.99


Total liabilities


4,876,293


4,958,642

(1.66)










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;








26,667,739 shares and 26,633,848 shares issued, respectively;








26,664,644 and 26,627,689 shares outstanding, respectively


55,558


55,487

0.13


Capital surplus


191,926


191,891

0.02


Retained earnings


403,746


396,281

1.88


Treasury stock (3,095 and 6,159 shares - at cost)


(61)


(127)

51.97


Accumulated other comprehensive income


(843)


(326)

(158.59)


Deferred benefits for directors


(1,214)


(1,205)

(0.75)


Total Shareholders' Equity


649,112


642,001

1.11


Total Liabilities and Shareholders' Equity


$    5,525,405


$         5,600,643

(1.34)

%











 

WESBANCO, INC.



Consolidated Selected Financial Highlights


Page 7

(unaudited, dollars in thousands)




Average balance sheet and




net interest margin analysis

Three Months Ended June 30,



For the Six Months Ended June 30,



2012

2011


2012

2011


Average 

Average


Average 

Average


Average 

Average


Average 

Average

Assets

Balance

Rate


Balance

Rate


Balance

Rate


Balance

Rate

Due from banks - interest bearing

$            17,382

0.39%


$            36,602

0.27%


$            30,885

0.25%


$            44,952

0.20%

Loans, net of unearned income (1)

3,248,090

5.07%


3,249,625

5.49%


3,249,863

5.13%


3,256,821

5.50%

Securities: (2)












    Taxable

1,311,223

2.58%


1,189,965

3.17%


1,290,239

2.64%


1,149,507

3.16%

    Tax-exempt (3)

317,197

5.97%


302,831

6.19%


313,907

6.04%


297,320

6.24%

        Total securities

1,628,420

3.24%


1,492,796

3.78%


1,604,146

3.31%


1,446,827

3.79%

Other earning assets

20,538

0.41%


25,546

0.45%


21,229

0.44%


26,592

0.49%

         Total earning assets (3)

4,914,430

4.43%


4,804,569

4.90%


4,906,123

4.48%


4,775,192

4.91%

Other assets

643,895



624,178



647,620



621,044


Total Assets

$       5,558,325



$       5,428,747



$     5,553,743



$     5,396,236














Liabilities and Shareholders' Equity












Interest bearing demand deposits

$          746,891

0.21%


$          794,808

0.29%


$          727,136

0.20%


$          606,355

0.40%

Money market accounts 

771,905

0.26%


621,253

0.73%


778,561

0.34%


782,442

0.66%

Savings deposits

639,539

0.13%


568,462

0.25%


626,043

0.16%


555,599

0.30%

Certificates of deposit

1,532,781

1.74%


1,638,775

1.94%


1,560,067

1.75%


1,657,027

1.94%

    Total interest bearing deposits

3,691,116

0.84%


3,623,298

1.11%


3,691,807

0.88%


3,601,423

1.15%

Federal Home Loan Bank borrowings

144,924

3.57%


231,153

3.47%


154,497

3.47%


235,624

3.45%

Other borrowings

192,097

2.42%


186,735

2.55%


196,164

2.39%


187,245

2.55%

Junior subordinated debt

106,079

3.24%


106,046

3.07%


106,074

3.28%


106,042

3.07%

      Total interest bearing liabilities 

4,134,216

1.07%


4,147,232

1.35%


4,148,542

1.11%


4,130,334

1.40%

Non-interest bearing demand deposits

737,143



626,502



722,857



613,955


Other liabilities

38,952



35,059



38,747



36,904


Shareholders' equity

648,014



619,954



643,597



615,043


Total Liabilities and Shareholders' Equity

$     5,558,325



$     5,428,747



$     5,553,743



$     5,396,236


Taxable equivalent net interest spread


3.36%



3.55%



3.37%



3.51%

Taxable equivalent net interest margin 


3.53%



3.73%



3.55%



3.70%













(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 $1.0 million and $1.4 million for the three months ended June 30, 2012 and 2011,

      and $2.0 million and $2.3 million for the six months ended June 30, 2012 and 2011, 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 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

June 30,


Mar. 31, 


Dec. 31,


Sept. 30,


June 30,

Interest income

2012


2012


2011


2011


2011


Loans, including fees

$          40,957


$                41,964


$              42,767


$                44,191


$              44,511


Interest and dividends on securities:












Taxable 

8,471


8,590


8,862


9,032


9,431



Tax-exempt

3,079


3,079


3,059


3,019


3,046




Total interest and dividends on securities

11,550


11,669


11,921


12,051


12,477


Other interest income 

38


47


52


45


54

          Total interest and dividend income

52,545


53,680


54,740


56,287


57,042

Interest Expense











Interest bearing demand deposits

393


405


487


462


579


Money market deposits

493


742


1,108


1,121


1,130


Savings deposits

200


295


337


332


349


Certificates of deposit

6,621


6,979


7,347


7,728


7,929




Total interest expense on deposits

7,707


8,421


9,279


9,643


9,987


Federal Home Loan Bank borrowings

1,288


1,377


1,456


1,714


2,003


Other short-term borrowings

1,156


1,178


1,232


1,220


1,188


Junior subordinated debt owed to unconsolidated subsidiary trusts

854


874


839


809


811




Total interest expense

11,005


11,850


12,806


13,386


13,989

Net interest income 

41,540


41,830


41,934


42,901


43,053


Provision for credit losses

5,903


6,202


9,631


10,836


6,802

Net interest income after provision for credit losses

35,637


35,628


32,303


32,065


36,251

Non-interest income











Trust fees

4,258


4,753


4,198


3,941


4,272


Service charges on deposits

4,218


3,993


4,638


4,881


4,889


Electronic banking fees

2,920


2,763


2,603


2,679


2,523


Net securities brokerage revenue

1,114


1,075


1,048


1,182


1,088


Bank-owned life insurance

874


880


864


908


900


Net gains on sales of mortgage loans

599


268


679


327


389


Net securities gains

1,294


100


865


67


14


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

(282)


32


(312)


(162)


(271)


Other income

899


1,458


1,185


776


1,212




Total non-interest income

15,894


15,322


15,768


14,599


15,016

Non-interest expense











Salaries and wages

13,955


14,315


14,633


14,427


13,959


Employee benefits

4,920


5,618


4,456


3,462


4,249


Net occupancy

2,703


2,776


2,805


3,068


2,461


Equipment 

2,144


2,174


2,193


2,107


2,145


Marketing

1,716


771


1,281


1,214


1,642


FDIC insurance 

965


1,045


1,008


1,091


1,015


Amortization of intangible assets

524


537


588


599


605


Other operating expenses  

9,157


8,429


8,530


7,639


9,627




Total non-interest expense

36,084


35,665


35,494


33,607


35,703

Income before provision for income taxes

15,447


15,285


12,577


13,057


15,564


Provision for income taxes 

3,449


3,295


1,940


2,044


3,646

Net income

$                      11,998


$                11,990


$              10,637


$                11,013


$              11,918














Taxable equivalent net interest income

$                     43,197


$               43,488


$             43,581


$               44,526


$             44,693














Per common share data










Net income per common share - basic

$                          0.45


$                    0.45


$                  0.40


$                    0.41


$                  0.45

Net income per common share - diluted

$                          0.45


$                    0.45


$                  0.40


$                    0.41


$                  0.45

Dividends declared

$                          0.17


$                    0.17


$                  0.16


$                    0.16


$                  0.15

Book value (period end)

$                        24.34


$                  24.11


$                23.80


$                  23.82


$                23.40

Tangible book value (period end) (1)

$                        13.76


$                  13.50


$                13.17


$                  13.17


$                12.72

Average common shares outstanding - basic

26,647,050


26,628,025


26,629,360


26,629,360


26,610,450

Average common shares outstanding - diluted

26,650,325


26,631,187


26,629,688


26,629,543


26,611,409

Period end common shares outstanding

26,664,644


26,627,689


26,629,360


26,629,360


26,629,360

Full time equivalent employees

1,404


1,371


1,368


1,377


1,406



























(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





June 30,


Mar. 31,


Dec. 31,


Sept. 30,


June 30,


Asset quality data

2012


2012


2011


2011


2011


Non-performing assets:












Troubled debt restructurings - accruing

$         28,165


$         27,900


$         29,411


$         27,416


$         36,437



Non-accrual loans:













Troubled debt restructurings

11,159


16,935


17,287


16,312


17,632




Other non-accrual loans

28,793


36,139


40,205


40,505


44,409




    Total non-accrual loans

39,952


53,074


57,492


56,817


62,041




    Total non-performing loans 

68,117


80,974


86,903


84,233


98,478



Other real estate and repossessed assets

3,918


3,178


3,029


4,687


5,012




Total non-performing assets

$         72,035


$         84,152


$         89,932


$         88,920


$       103,490















Past due loans (1):












Loans past due 30-89 days

$         15,117


$         15,034


$         19,888


$         23,658


$         19,047



Loans past due 90 days or more

3,639


3,146


5,135


6,401


6,732




Total past due loans

$         18,756


$         18,180


$         25,023


$         30,059


$         25,779















Criticized and classified loans (2):












Criticized loans

$       122,854


$       129,312


$       141,195


$       147,572


$       169,162



Classified loans

100,436


107,757


116,973


123,102


136,583




Total criticized and classified loans

$       223,290


$       237,069


$       258,168


$       270,674


$       305,745















Loans past due 30-89 days / total loans

0.46

%

0.47

%

0.61

%

0.73

%

0.58

%

Loans past due 90 days or more / total loans

0.11


0.10


0.16


0.20


0.21


Non-performing loans / total loans

2.08


2.51


2.68


2.60


3.02


Non-performing assets/total loans, other












real estate and repossessed assets

2.20


2.61


2.77


2.74


3.17


Criticized and classified loans / total loans

6.82


7.35


7.97


8.35


9.37















Allowance for loan losses











Allowance for loan losses

$         53,610


$         54,395


$         54,810


$         55,098


$         61,418


Provision for credit losses

5,903


6,202


9,631


10,836


6,802


Net loan and deposit account overdraft charge-offs

6,805


6,617


9,921


17,392


6,877















Annualized net loan charge-offs /average loans

0.84

%

0.82

%

1.22

%

2.11

%

0.85

%

Allowance for loan losses/total loans

1.64

%

1.69

%

1.69

%

1.70

%

1.88

%

Allowance for loan losses/non-performing loans

0.79

x

0.67

x

0.63

x

0.65

x

0.62

x

Allowance for loan losses/non-performing loans and












loans past due 

0.62

x

0.55

x

0.49

x

0.48

x

0.49

x






























Quarter Ended





June 30,


Mar. 31,


Dec. 31,


Sept. 30,


June 30,





2012


2012


2011


2011


2011


Capital ratios











Tier I leverage capital

8.94

%

8.81

%

8.71

%

8.69

%

8.59

%

Tier I risk-based capital

13.11


12.89


12.68


12.49


12.35


Total risk-based capital

14.36


14.14


13.93


13.74


13.61


Average shareholders' equity to average assets

11.66


11.52


11.58


11.57


11.42


Tangible equity to tangible assets (3)

7.00


6.76


6.68


6.72


6.59




























(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 



June 30,


Mar. 31,


Dec. 31, 


Sept. 30, 


June 30,


June 30,

(unaudited, dollars in thousands)

2012


2012


2011


2011


2011


2012

2011

Return on average tangible equity: