2014

WesBanco Announces Increased Earnings

WHEELING, W.Va., Jan. 29, 2013 /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 twelve months ended December 31, 2012.

For the twelve months ended December 31, 2012, net income was $49.5 million as compared to $43.8 million for 2011, representing an increase of 13.1%, while diluted earnings per share were $1.84, as compared to $1.65 per share for 2011.  Net income, excluding restructuring and merger-related expenses, was $52.1 million compared to $43.8 million for 2011, representing an increase of 18.9%, while diluted earnings per share, excluding restructuring and merger-related expenses, were $1.94 (non-GAAP measure), compared to $1.65 per share for 2011.

During the year, WesBanco had many accomplishments, including the acquisition of Fidelity Bancorp, Inc. ("Fidelity"), a reduction in non-performing loans, elimination of certain unprofitable branches, growth in non-interest income, and increased loan originations and outstanding loan balances, while maintaining strong capital ratios.  As of November 30, 2012, WesBanco completed the acquisition of Fidelity, a Pittsburgh-based bank.  Fidelity had assets of $0.6 billion and operates 13 branches throughout the Pittsburgh metropolitan area.  Fidelity's assets and liabilities are included in our financial statements at fair value, and income and expense are included subsequent to the merger date.

Mr. Limbert commented, "2012 was a successful year in many ways.  We are very pleased with the completion of the acquisition of Fidelity.  We are very excited to work with the experienced Fidelity team in expanding our presence in Pittsburgh and offering our expanded array of products to their customers. Another major accomplishment this year was the continued improvement in credit quality resulting in our ability to reduce the provision for credit losses in each of the last five quarters.  We were also able to grow loans outstanding through our loan origination efforts which provided net loan growth in 2012 of over 4.0%.  Our accomplishments during 2012 have resulted in the significant improvement in our operating results and growth in net income."

Financial Condition

Total assets at December 31, 2012 increased 9.8% or $542.7 million from the prior year-end due to the acquisition of Fidelity and organic growth. Portfolio loans increased $448.4 million or 13.8% with $313.4 million from the acquisition and the remaining $135.0 million as WesBanco's originations outpaced paydowns. Separate from the Fidelity acquisition, WesBanco grew outstanding loans 4.2% from the previous year as a result of a 29.7% growth in loan originations from the prior year. The organic loan growth and declines in higher cost borrowings of $110.9 million over the last twelve months were funded by organic deposit growth and the use of other liquid assets. Deposits increased $550.4 million or 12.5% in 2012, with $455.0 million from the acquisition and $95.4 million from organic growth.  Goodwill and core deposit intangibles created by the merger totaled approximately $43.5 million.

WesBanco has continued to maintain strong regulatory capital ratios even after the completion of the Fidelity acquisition. At December 31, 2012, tier I leverage was 8.67%, tier I risk-based capital was 12.82%, and total risk-based capital was 14.07%, all of which were relatively unchanged from the prior year end.  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 6.77% at December 31, 2012, a nine basis point increase from a year ago.  Strong earnings and improved capital have enabled WesBanco to increase its dividend four times over the last two years totaling 29% to the current $0.18 per share, an approximate 3.2% dividend yield.

Credit Quality

WesBanco has continued to improve credit quality over the last two years. Total non-performing loans were $63.7 million or 1.73% of total loans at December 31, 2012, which represents a 26.7% decrease from $86.9 million or 2.68% at December 31 of the prior year.   The 2012 ending balance includes accruing and non-accrual troubled debt restructurings ("TDR's") totaling $9.4 million related to the implementation during the quarter of a regulatory requirement for primarily mortgage, home equity and consumer loans discharged in bankruptcy, which the borrower has continued to repay after the discharge. Classified and criticized loans decreased $85.4 million or 33.1% from December 31, 2011.  Sales of commercial loans during 2012 decreased non-performing loans by $9.4 million and classified and criticized loans by $10.3 million compared to December 31, 2011.  Additionally, $11.3 million of non-performing commercial loans acquired in the Fidelity acquisition, with a fair value of $6.9 million, were sold concurrent with the merger in the fourth quarter.

Net charge-offs for 2012 were $22.1 million, or 0.67% of average portfolio loans, compared to $42.5 million or 1.30% for 2011. As a result of the improvement in all measures of credit quality, the provision for credit losses was $19.9 million for 2012 compared to $35.3 million for 2011.  The allowance for loan losses represented 1.43% of total portfolio loans at year end; however, if the credit mark on the Fidelity loans were to be included, the allowance would approximate 1.62% of loans.   After an independent review of the merger date loan portfolio, the gross loan mark of $12.6 million was similar to the amount disclosed upon announcement of the merger.

Net Interest Income, Non-Interest Income and Non-Interest Expense

Net interest income decreased $1.0 million or 0.6% for 2012 compared to 2011 as a result of the low interest rate environment.   While the average outstanding loan balances increased during 2012, these increases were not sufficient to offset the decline in average interest rates.  Non-interest income increased $4.9 million or 8.2% in 2012 compared to 2011.  Trust fees increased $0.9 million as assets under management continued to increase from customer initiatives of trust and investment development activities that began in the first half of 2012.  Electronic banking fees increased 12.4% in 2012 due to increased transaction volumes.  Net gains on sales of mortgage loans increased $0.9 million due to increased volume and higher margins on sold loans.  The net loss on other real estate owned improved $1.0 million and net security gains were $2.5 million in 2012.  Service charges on deposits decreased $1.5 million primarily from decreases in customer usage of overdraft lines.

Non-interest expense increased 7.0% for the year compared to 2011 partially due to restructuring and merger-related expenses of $3.9 million.  Merger expenses in 2012 related to the Fidelity merger were $3.2 million, while restructuring costs associated with the closure of six branch offices were $0.7 million.  Total non-interest expense would have increased 4.2% for the year without these charges.  Salaries and wages increased $2.2 million in 2012 due to routine annual adjustments to compensation, increases in incentive compensation expense, and an increase in full-time equivalent employees ("FTE") of 139 primarily due to the acquisition of Fidelity.  Employee benefits expense increased $4.1 million year-to-date primarily from increased pension and employee health insurance costs.  Partially offsetting these increases were reduced marketing expense of $0.9 million and reduced FDIC insurance of $0.9 million

Fourth Quarter of 2012 compared to Fourth Quarter of 2011

For the fourth quarter of 2012, net income was $12.7 million compared to $10.6 million for the fourth quarter of 2011, representing an increase of 18.9%, while diluted earnings per share were $0.46 as compared to $0.40 per share for the fourth quarter of 2011. Net income for the fourth quarter of 2012, excluding restructuring and merger-related expenses, was $14.2 million compared to $10.6 million for 2011, representing an increase of 34.0%, while diluted earnings per share excluding restructuring and merger-related expenses were $0.52, compared to $0.40 per share for 2011.

Net income increased for the quarter primarily due to a $6.4 million decrease in the provision for credit losses as a result of improved credit quality, and a $1.3 million increase in net interest income from increased average assets due to organic loan growth in 2012 and the acquisition of Fidelity.  Non-interest income increased $1.8 million due to a 10.9% increase in trust fees from growth in assets under management, higher electronic banking fees, increased gains on sale of mortgage loans, and near break-even charges on disposition of other real estate owned in the 2012 quarter.  Increases in non-interest expense were due to the restructuring and merger-related expenses, increased FTEs and normal increases at WesBanco for compensation increases, while increased employee benefits were due to higher pension and employee health insurance costs.

WesBanco is a multi-state bank holding company with total assets of approximately $6.1 billion, operating through 118 branch locations and 107 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 quarters ended March 31, 2012, June 30, 2012 and September 30, 2012 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

2012


2011


% Change


2012


2011


% Change


Loans, including fees

$             42,311


$           42,767


(1.07%)


$       166,656


$         175,818


(5.21%)


Interest and dividends on securities:














Taxable 

7,677


8,862


(13.37%)


32,461


36,034


(9.92%)



Tax-exempt

3,129


3,059


2.29%


12,399


12,109


2.39%




Total interest and dividends on securities

10,806


11,921


(9.35%)


44,860


48,143


(6.82%)


Other interest income 

55


52


5.77%


170


206


(17.48%)

          Total interest and dividend income

53,172


54,740


(2.86%)


211,686


224,167


(5.57%)

Interest expense













Interest bearing demand deposits

395


487


(18.89%)


1,526


2,160


(29.35%)


Money market deposits

397


1,108


(64.17%)


2,183


4,802


(54.54%)


Savings deposits

168


337


(50.15%)


864


1,505


(42.59%)


Certificates of deposit

6,321


7,347


(13.96%)


26,371


31,054


(15.08%)




Total interest expense on deposits

7,281


9,279


(21.53%)


30,944


39,521


(21.70%)


Federal Home Loan Bank borrowings

789


1,456


(45.81%)


4,473


7,199


(37.87%)


Other short-term borrowings

976


1,232


(20.78%)


4,480


4,823


(7.11%)


Junior subordinated debt owed to unconsolidated subsidiary trusts

840


839


0.12%


3,438


3,259


5.49%




Total interest expense

9,886


12,806


(22.80%)


43,335


54,802


(20.92%)

Net interest income 

43,286


41,934


3.22%


168,351


169,365


(0.60%)


Provision for credit losses

3,272


9,631


(66.03%)


19,874


35,311


(43.72%)

Net interest income after provision for credit losses

40,014


32,303


23.87%


148,477


134,054


10.76%

Non-interest income













Trust fees

4,655


4,198


10.89%


18,044


17,173


5.07%


Service charges on deposits

4,565


4,638


(1.57%)


17,138


18,629


(8.00%)


Electronic banking fees

2,807


2,603


7.84%


11,336


10,088


12.37%


Net securities brokerage revenue

1,284


1,048


22.52%


4,604


4,413


4.33%


Bank-owned life insurance

870


864


0.69%


3,516


3,566


(1.40%)


Net gains on sales of mortgage loans

1,015


679


49.48%


2,876


1,977


45.47%


Net securities gains

752


865


(13.06%)


2,463


963


155.76%


Net loss on other real estate owned and other assets

(7)


(312)


97.76%


(305)


(1,290)


76.36%


Other income

1,656


1,185


39.75%


5,103


4,369


16.80%




Total non-interest income

17,597


15,768


11.60%


64,775


59,888


8.16%

Non-interest expense













Salaries and wages

15,885


14,633


8.56%


58,913


56,673


3.95%


Employee benefits

5,924


4,456


32.94%


21,462


17,321


23.91%


Net occupancy

2,771


2,805


(1.21%)


10,905


11,255


(3.11%)


Equipment 

2,604


2,193


18.74%


9,221


8,745


5.44%


Marketing

953


1,281


(25.60%)


4,235


5,142


(17.64%)


FDIC insurance 

937


1,008


(7.04%)


3,899


4,768


(18.23%)


Amortization of intangible assets

570


588


(3.06%)


2,150


2,410


(10.79%)


Restructuring and merger-related expense

2,370


-


100.00%


3,888


-


100.00%


Other operating expenses  

9,567


8,530


12.16%


35,447


33,981


4.31%




Total non-interest expense

41,581


35,494


17.15%


150,120


140,295


7.00%

Income before provision for income taxes

16,030


12,577


27.45%


63,132


53,647


17.68%


Provision for income taxes 

3,380


1,940


74.23%


13,588


9,838


38.12%

Net Income

$             12,650


$           10,637


18.92%


$         49,544


$           43,809


13.09%
















Taxable equivalent net interest income

$            44,971


$          43,581


3.19%


$       175,027


$        175,885


(0.49%)
















Per common share data












Net income per common share - basic

$                 0.46


$               0.40


15.00%


$              1.84


$               1.65


11.52%

Net income per common share - diluted

$                 0.46


$               0.40


15.00%


$              1.84


$               1.65


11.52%

Dividends declared

$                 0.18


$               0.16


12.50%


$              0.70


$               0.62


12.90%

Book value (period end)







$            24.45


$             23.80


2.73%

Tangible book value (period end) (1)







$            13.34


$             13.17


1.29%

Average common shares outstanding - basic

27,523,958


26,629,360


3.36%


26,867,227


26,614,697


0.95%

Average common shares outstanding - diluted

27,549,655


26,629,688


3.45%


26,888,847


26,615,281


1.03%

Period end common shares outstanding

29,214,660


26,629,360


9.71%


29,214,660


26,629,360


9.71%
















(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,









2012


2011


% Change


























Return on average assets





0.88

%

0.81

%

8.64

%







Return on average equity





7.54


7.01


7.56








Return on average tangible equity (1)




13.68


13.32


2.70








Yield on earning assets (2) 





4.40


4.80


(8.33)








Cost of interest bearing liabilities




1.04


1.32


(21.21)








Net interest spread (2)





3.36


3.48


(3.45)








Net interest margin (2)





3.53


3.66


(3.55)








Efficiency (1) (2)






60.98


59.50


2.49








Average loans to average deposits




74.15


76.32


(2.84)








Annualized net loan charge-offs/average loans




0.66


1.30


(49.23)








Effective income tax rate 





21.52


18.34


17.34






















































































For the Quarter Ended










Dec. 31,


Sept. 30,


June 30,


Mar. 31,


Dec. 31,










2012


2012


2012


2012


2011






















Return on average assets





0.87

%

0.92

%

0.87

%

0.87

%

0.77

%



Return on average equity





7.36


7.83


7.45


7.54


6.61




Return on average tangible equity (1)




13.16


14.09


13.57


13.93


12.31




Yield on earning assets (2) 





4.27


4.37


4.43


4.54


4.61




Cost of interest bearing liabilities




0.93


1.03


1.07


1.14


1.22




Net interest spread (2)





3.34


3.34


3.36


3.40


3.39




Net interest margin (2)





3.50


3.51


3.53


3.57


3.56




Efficiency (1) (2) 






62.67


59.45


61.06


60.64


59.81




Average loans to average deposits




74.40


74.95


73.35


73.88


74.31




Annualized net loan charge-offs/average loans




0.47


0.54


0.84


0.82


1.22




Effective income tax rate 





21.09


21.16


22.33


21.56


15.42




Trust assets, market value at period end




$     3,238,556


$        3,236,618


$        3,133,741


$        3,164,235


$        2,973,352






















(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, 2012


Assets



2012


2011


% Change


2012

to December 31, 2012


Cash and due from banks


$          91,716


$        129,396


(29.12)

%

$                97,736

(6.16)

%

Due from banks - interest bearing


33,889


10,929


210.08


18,675

81.47


Securities:













Available-for-sale, at fair value


1,021,244


1,016,340


0.48


993,754

2.77



Held-to-maturity (fair values of $639,273; $621,472 and $598,854, respectively)


602,509


592,925


1.62


559,156

7.75



     Total securities


1,623,753


1,609,265


0.90


1,552,910

4.56


Loans held for sale


21,903


6,084


260.01


14,225

53.98


Portfolio loans:












Commercial real estate


1,858,345


1,685,565


10.25


1,717,241

8.22



Commercial and industrial


478,025


426,315


12.13


447,767

6.76



Residential real estate 


793,702


621,383


27.73


684,016

16.04



Home equity


277,226


251,785


10.10


255,787

8.38



Consumer 


280,464


254,320


10.28


248,155

13.02


Total portfolio loans, net of unearned income


3,687,762


3,239,368


13.84


3,352,966

9.99


Allowance for loan losses


(52,699)


(54,810)


3.85


(53,476)

1.45



     Net portfolio loans


3,635,063


3,184,558


14.15


3,299,490

10.17


Premises and equipment, net


88,866


82,204


8.10


80,176

10.84


Accrued interest receivable


19,354


19,268


0.45


19,171

0.95


Goodwill and other intangible assets, net


324,465


283,150


14.59


281,570

15.23


Bank-owned life insurance


119,671


110,074


8.72


112,720

6.17


Other assets


120,037


101,102


18.73


100,286

19.69


Total Assets


$      6,078,717


$     5,536,030


9.80

%

$           5,576,959

9.00

%















Liabilities











Deposits:













Non-interest bearing demand


$         874,923


$        705,415


24.03

%

$              760,308

15.07

%


Interest bearing demand


831,368


698,113


19.09


784,748

5.94



Money market


847,805


789,037


7.45


778,121

8.96



Savings deposits


740,568


596,549


24.14


649,959

13.94



Certificates of deposit


1,649,620


1,604,752


2.80


1,515,076

8.88



     Total deposits


4,944,284


4,393,866


12.53


4,488,212

10.16


Federal Home Loan Bank borrowings


111,187


168,186


(33.89)


91,617

21.36


Other short-term borrowings


142,971


196,887


(27.38)


186,886

(23.50)


Junior subordinated debt owed to unconsolidated subsidiary trusts


113,832


106,066


7.32


106,091

7.30



     Total borrowings


367,990


471,139


(21.89)


384,594

(4.32)


Accrued interest payable


3,856


4,975


(22.49)


4,628

(16.68)


Other liabilities


48,403


32,260


50.04


40,203

20.40


Total Liabilities


5,364,533


4,902,240


9.43


4,917,637

9.09
















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;












29,214,660 shares; 26,633,848 shares and 26,667,739 shares issued, respectively; 












29,214,660 shares; 26,629,360 shares and 26,665,519 shares outstanding, respectively


60,863


55,487


9.69


55,558

9.55


Capital surplus


241,672


191,679


26.08


192,159

25.77


Retained earnings


419,246


388,818


7.83


411,853

1.80


Treasury stock ( 0; 4,488 and 2,220 shares - at cost, respectively)


-


(96)


(100.00)


(44)

(100.00)


Accumulated other comprehensive income (loss)


(6,365)


(902)


(605.65)


1,019

(724.63)


Deferred benefits for directors


(1,232)


(1,196)


(3.01)


(1,223)

(0.74)


Total Shareholders' Equity


714,184


633,790


12.68


659,322

8.32


Total Liabilities and Shareholders' Equity


$    6,078,717


$   5,536,030


9.80

%

$         5,576,959

9.00

%















 

 

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,


For the Year Ended December 31,






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



$            22,277

0.36%


$            53,005

0.25%


$            26,865

0.25%


$            48,723

0.21%

Loans, net of unearned income (1)



3,463,911

4.86%


3,237,808

5.24%


3,323,078

5.02%


3,256,887

5.40%

Securities: (2)
















    Taxable





1,275,530

2.41%


1,246,971

2.84%


1,270,446

2.56%


1,179,458

3.06%

    Tax-exempt (3)





340,788

5.65%


305,129

6.17%


323,885

5.89%


299,357

6.22%

        Total securities





1,616,318

3.09%


1,552,100

3.50%


1,594,331

3.23%


1,478,815

3.70%

Other earning assets





17,158

0.82%


22,899

0.33%


19,621

0.52%


25,030

0.42%

         Total earning assets (3)



5,119,664

4.27%


4,865,812

4.61%


4,963,895

4.40%


4,809,455

4.80%

Other assets





641,331



647,999



642,491



630,788


Total Assets





$       5,760,995



$       5,513,811



$       5,606,386



$       5,440,243


















Liabilities and Shareholders' Equity














Interest bearing demand deposits



$          814,894

0.19%


$          577,644

0.33%


$          755,908

0.20%


$          628,037

0.34%

Money market accounts 




800,059

0.20%


900,494

0.49%


781,400

0.28%


792,565

0.61%

Savings deposits





679,646

0.10%


588,799

0.23%


645,310

0.13%


570,093

0.26%

Certificates of deposit




1,558,594

1.61%


1,609,711

1.81%


1,547,379

1.70%


1,636,753

1.90%

    Total interest bearing deposits



3,853,193

0.75%


3,676,648

1.00%


3,729,997

0.83%


3,627,448

1.09%

Federal Home Loan Bank borrowings



92,264

3.40%


172,609

3.35%


130,048

3.44%


210,506

3.42%

Other borrowings





178,809

2.17%


204,311

2.39%


191,534

2.34%


194,768

2.48%

Junior subordinated debt




108,673

3.08%


106,062

3.14%


106,727

3.22%


106,050

3.07%

      Total interest bearing liabilities 



4,232,939

0.93%


4,159,630

1.22%


4,158,306

1.04%


4,138,772

1.32%

Non-interest bearing demand deposits



802,385



680,637



751,345



639,837


Other liabilities





41,977



34,888



40,051



36,573


Shareholders' equity





683,694



638,656



656,684



625,061


Total Liabilities and Shareholders' Equity



$     5,760,995



$       5,513,811



$       5,606,386



$       5,440,243


Taxable equivalent net interest spread




3.34%



3.39%



3.36%



3.48%

Taxable equivalent net interest margin 




3.50%



3.56%



3.53%



3.66%

















(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 $0.9 million for the three months ended December 31, 2012 and 2011,




     and $4.0 million and $4.3 million for the year ended December 31, 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

Dec. 31,


Sept. 30,


June 30,


Mar. 31, 


Dec. 31,

Interest income

2012


2012


2012


2012


2011

     Loans, including fees

$          42,311


$                41,423


$              40,957


$                41,964


$              42,767

     Interest and dividends on securities:










          Taxable 

7,677


7,722


8,471


8,590


8,862

          Tax-exempt

3,129


3,113


3,079


3,079


3,059

               Total interest and dividends on securities

10,806


10,835


11,550


11,669


11,921

Other interest income 

55


30


38


47


52

           Total interest and dividend income

53,172


52,288


52,545


53,680


54,740

Interest expense










     Interest bearing demand deposits

395


397


393


405


487

     Money market deposits

397


487


493


742


1,108

     Savings deposits

168


202


200


295


337

     Certificates of deposit

6,321


6,450


6,621


6,979


7,347

               Total interest expense on deposits

7,281


7,536


7,707


8,421


9,279

     Federal Home Loan Bank borrowings

789


1,020


1,288


1,377


1,456

     Other short-term borrowings

976


1,169


1,156


1,178


1,232

     Junior subordinated debt owed to unconsolidated subsidiary trusts

840


869


854


874


839

               Total interest expense

9,886


10,594


11,005


11,850


12,806

Net interest income 

43,286


41,694


41,540


41,830


41,934

     Provision for credit losses

3,272


4,497


5,903


6,202


9,631

Net interest income after provision for credit losses

40,014


37,197


35,637


35,628


32,303

Non-interest income










     Trust fees

4,655


4,379


4,258


4,753


4,198

     Service charges on deposits

4,565


4,362


4,218


3,993


4,638

     Electronic banking fees

2,807


2,846


2,920


2,763


2,603

     Net securities brokerage revenue

1,284


1,131


1,114


1,075


1,048

     Bank-owned life insurance

870


891


874


880


864

     Net gains on sales of mortgage loans

1,015


993


599


268


679

     Net securities gains

752


316


1,294


100


865

     Net loss on other real estate owned and other assets

(7)


(48)


(282)


32


(312)

     Other income

1,656


1,092


899


1,458


1,185

              Total non-interest income

17,597


15,962


15,894


15,322


15,768

Non-interest expense










     Salaries and wages

15,885


14,758


13,955


14,315


14,633

     Employee benefits

5,924


5,000


4,920


5,618


4,456

     Net occupancy

2,771


2,654


2,703


2,776


2,805

     Equipment 

2,604


2,300


2,144


2,174


2,193

     Marketing

953


795


1,716


771


1,281

     FDIC insurance 

937


951


965


1,045


1,008

     Amortization of intangible assets

570


519


524


537


588

     Restructuring and merger-related expense

2,370


1,518


-


-


-

     Other operating expenses  

9,567


8,295


9,157


8,429


8,530

              Total non-interest expense

41,581


36,790


36,084


35,665


35,494

Income before provision for income taxes

16,030


16,369


15,447


15,285


12,577

     Provision for income taxes 

3,380


3,463


3,449


3,295


1,940

Net Income

$                      12,650


$                12,906


$              11,998


$                11,990


$              10,637











Taxable equivalent net interest income

$                     44,971


$               43,370


$             43,197


$               43,488


$             43,581











Per common share data










Net income per common share - basic

$                          0.46


$                    0.48


$                  0.45


$                    0.45


$                  0.40

Net income per common share - diluted

$                          0.46


$                    0.48


$                  0.45


$                    0.45


$                  0.40

Dividends declared

$                          0.18


$                    0.18


$                  0.17


$                    0.17


$                  0.16

Book value (period end)

$                        24.45


$                  24.73


$                24.34


$                  24.11


$                23.80

Tangible book value (period end) (1)

$                        13.34


$                  14.17


$                13.76


$                  13.50


$                13.17

Average common shares outstanding - basic

27,523,958


26,664,882


26,647,050


26,628,025


26,629,360

Average common shares outstanding - diluted

27,549,655


26,672,849


26,650,325


26,631,187


26,629,688

Period end common shares outstanding

29,214,660


26,665,519


26,664,644


26,627,689


26,629,360

Full time equivalent employees

1,507


1,366


1,404


1,371


1,368























(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


2012


2012


2012


2012


2011


Non-performing assets:













Troubled debt restructurings - accruing


$         24,281


$         24,858


$         28,165


$         27,900


$         29,411



Non-accrual loans:














Troubled debt restructurings


15,001


9,449


11,159


16,935


17,287




Other non-accrual loans


24,371


24,841


28,793


36,139


40,205




    Total non-accrual loans


39,372


34,290


39,952


53,074


57,492




    Total non-performing loans 


63,653


59,148


68,117


80,974


86,903



Other real estate and repossessed assets


5,988


3,951


3,918


3,178


3,029




Total non-performing assets


$         69,641


$         63,099


$         72,035


$         84,152


$         89,932
















Past due loans (1):













Loans past due 30-89 days


$         20,843


$         17,332


$         15,117


$         15,034


$         19,888



Loans past due 90 days or more


5,294


3,560


3,639


3,146


5,135




Total past due loans


$         26,137


$         20,892


$         18,756


$         18,180


$         25,023
















Criticized and classified loans (2):













Criticized loans


$         86,777


$       102,792


$       122,854


$       129,312


$       141,195



Classified loans


85,960


94,613


100,436


107,757


116,973




Total criticized and classified loans


$       172,737


$       197,405


$       223,290


$       237,069


$       258,168
















Loans past due 30-89 days / total portfolio loans

0.57

%

0.52

%

0.46

%

0.47

%

0.61

%

Loans past due 90 days or more / total portfolio loans

0.14


0.11


0.11


0.10


0.16


Non-performing loans / total portfolio loans


1.73


1.76


2.08


2.51


2.68


Non-performing assets/total portfolio loans, other












real estate and repossessed assets


1.89


1.88


2.20


2.61


2.77


Criticized and classified loans / total portfolio loans

4.68


5.89


6.82


7.35


7.97
















Allowance for loan losses












Allowance for loan losses


$         52,699


$         53,476


$         53,610


$         54,395


$         54,810


Provision for credit losses


3,272


4,497


5,903


6,202


9,631


Net loan and deposit account overdraft charge-offs

4,124


4,566


6,805


6,617


9,921
















Annualized net loan charge-offs /average loans

0.47

%

0.54

%

0.84

%

0.82

%

1.22

%

Allowance for loan losses/total portfolio loans

1.43

%

1.59

%

1.64

%

1.69

%

1.69

%

Allowance for loan losses/non-performing loans

0.83

x

0.90

x

0.79

x

0.67

x

0.63

x

Allowance for loan losses/non-performing loans and












loans past due 


0.59

x

0.67

x

0.62

x

0.55

x

0.49

x

































Quarter Ended






Dec. 31,


Sept. 30,


June 30,


Mar. 31,


Dec. 31,






2012


2012


2012


2012


2011


Capital ratios












Tier I leverage capital


8.67

%

9.11

%

8.94

%

8.81

%

8.71

%

Tier I risk-based capital


12.82


13.20


13.11


12.89


12.68


Total risk-based capital


14.07


14.45


14.36


14.14


13.93


Average shareholders' equity to average assets

11.87


11.80


11.66


11.52


11.58


Tangible equity to tangible assets (3)


6.77


7.13


7.00


6.76


6.68