WHEELING, W.Va., April 24, 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 months ended March 31, 2013.
Net income for the three months ended March 31, 2013 was $16.0 million compared to $12.0 million for the first quarter of 2012, representing an increase of 33.6%, while diluted earnings per share were $0.55, compared to $0.45 per share for the first quarter of 2012, representing an increase of 22.2%. Net income, excluding merger-related expenses of $1.2 million, was $16.8 million compared to $12.0 million for 2012, representing an increase of 40.0%, while diluted earnings per share, excluding merger-related expenses, were $0.57 (non-GAAP measure), compared to $0.45 per share for 2012. The increased earnings improved the return on average assets to 1.07% from 0.87% in the first quarter of last year and the return on average tangible equity (non-GAAP measure) grew to 16.72% from 13.93%.
Mr. Limbert commented, "The 2013 first quarter financial results were very positive. We are pleased with the continued improvement in operating results and the opportunities that our fourth quarter acquisition of Pittsburgh-based Fidelity Bancorp, Inc. ("Fidelity") provides in our expanded western Pennsylvania market. The Fidelity acquisition has already contributed to the increase in net interest income and many components of non-interest income. In February, we changed the name on each of the acquired branches and launched our initial marketing campaign. The operations, communication, branch support and accounting systems were also successfully converted and we are now focused on growing our Pittsburgh customer base and loan originations, while providing expanded products and services to our newest market."
Financial Condition
Total assets at March 31, 2013 increased 8.7% or $484.8 million from March 31, 2012 due to the acquisition of Fidelity and organic growth. The Fidelity acquisition added 13 branches to WesBanco, located throughout the Pittsburgh metropolitan area. Portfolio loans increased $460.1 million or 14.3% from March 31, 2012 with $312.3 million from western Pennsylvania, which includes the Fidelity acquired loans, and the remaining $147.8 million from other WesBanco regions as originations continued to outpace paydowns. Separate from the western Pennsylvania region, WesBanco grew outstanding loans 4.9% from March 31, 2012 as a result of a 52.2% growth in loan originations from the prior year. Loan growth, excluding the acquisition, and declines in higher cost borrowings of $146.4 million over the last twelve months were funded by deposit growth and the use of other liquid assets. Deposits increased $532.3 million or 11.9% from March 31, 2012, with $433.3 million from the western Pennsylvania region. Total assets at March 31, 2013 were relatively unchanged compared to 2012 year-end, as were total loans. However, originated loans increased 23.0% in the first quarter compared to the fourth quarter of last year and the commercial pipeline remains strong.
WesBanco has continued to maintain strong regulatory capital ratios. At March 31, 2013, tier I leverage was 8.92%, tier I risk-based capital was 12.88%, and total risk-based capital was 14.13%, all of which were relatively unchanged from the end of the first quarter of 2012. 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 6.97% at March 31, 2013, a 21 basis point increase from a year ago. Strong earnings and improved capital have enabled WesBanco to increase its dividend five times over the last two years, cumulatively a 36% increase. The current $0.19 per share quarterly dividend rate represents an approximate 3.2% dividend yield.
Credit Quality
WesBanco has significantly improved credit quality over the past year. Total non-performing loans were $63.1 million or 1.71% of total loans at March 31, 2013, which represents a 22.0% decrease from $81.0 million or 2.51% at March 31 of the prior year. Criticized and classified loans decreased 29.1% over the last twelve months to $168.1 million at March 31, of 2013. Criticized and classified loans were 4.56% of total loans compared to 7.35% at the end of the 2012 first quarter.
Net charge-offs for the first quarter of 2013 were $3.0 million, or 0.34% of average portfolio loans, and represented the lowest charge-off level in over three years. Net charge-offs were $6.6 million or 0.82% for the first quarter of 2012. As a result of the improvement in all measures of credit quality, the provision for credit losses was $2.1 million for the first quarter of 2013 compared to $6.2 million for the same quarter of 2012. The allowance for loan losses represented 1.40% of total portfolio loans at the end of the first quarter. However, if the acquired Fidelity loans (which were recorded at fair value at the date of acquisition) were excluded from the ratio, the allowance would approximate 1.50% of the adjusted loan total compared to 1.69% at March 31, 2012.
Net Interest Income
Net interest income increased $4.3 million or 10.3% in the first quarter of 2013 compared to the first quarter of 2012 due to an 8.4% increase in average earning assets, primarily through increased average loan balances. This increase mitigated the effect of the low interest rate environment, as loans provide the highest rate for investment in new earning assets. In addition, the net interest margin increased by seven basis points to 3.64% in the first quarter of 2013 through a decrease in rates paid on interest bearing liabilities in excess of the decrease in rates earned on assets. This improvement in funding costs resulted from a 41.0% reduction in higher rate average FHLB and other borrowings, primarily through maturities, a 12.7% increase in total deposits, of which 89.7% were lower cost demand, money market or savings accounts, and the lowering of rates for certain deposit types. Accretion of the purchase accounting adjustments for loans, CDs and borrowings acquired with the Fidelity merger also benefited the net interest margin in the 2013 first quarter.
Non-Interest Income and Non-Interest Expense
Non-interest income for the quarter ended March 31, 2013 increased $2.2 million or 14.2% compared to the same 2012 quarter. Trust fees increased $0.3 million or 5.6% as assets under management continued to increase from customer development initiatives of trust and investment activities. Net securities brokerage revenues increased $0.4 million or 39.3% due to additional market coverage in the Pittsburgh area and improved production in other markets. Net gains on sales of mortgage loans increased $0.4 million due to increased volume and higher margins on sold loans. In addition, the first quarter of 2013 includes a $1.1 million bank-owned life insurance death benefit.
Non-interest expense increased $5.1 million or 14.3% for the first quarter compared to the first quarter of 2012 partially due to Fidelity merger-related expenses of $1.2 million. Total non-interest expense would have increased 10.9% for the quarter without these charges, to a large extent due to the acquisition of the 13 Fidelity offices in the Pittsburgh area. Salaries and wages increased $1.5 million due to routine annual adjustments to compensation, increased commissions on higher loan origination and brokerage revenue and an increase in full-time equivalent employees ("FTE") of 77 primarily due to the acquisition of Fidelity. Personnel cost savings from Fidelity were primarily achieved by the end of the first quarter. Employee benefits expense increased $0.7 million primarily from increased pension and employee health insurance costs.
Financial Results Conference Call
WesBanco, Inc. will host a conference call to discuss the Company's financial results for the first quarter of 2013 on Thursday, April 25, 2013, at 11:00 AM EDT. Callers wishing to participate should access the call by dialing (800) 860-2442 or +1 (412) 858-4600 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=93119. 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 118 branch locations and 106 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"), 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. |
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Consolidated Selected Financial Highlights |
Page 4 |
|||||||
(unaudited, dollars in thousands, except shares and per share amounts) |
||||||||
For the Three Months Ended |
||||||||
STATEMENT OF INCOME |
March 31, |
|||||||
Interest and dividend income |
2013 |
2012 |
% Change |
|||||
Loans, including fees |
$ 44,276 |
$ 41,964 |
5.51% |
|||||
Interest and dividends on securities: |
||||||||
Taxable |
7,433 |
8,590 |
(13.47%) |
|||||
Tax-exempt |
3,127 |
3,079 |
1.56% |
|||||
Total interest and dividends on securities |
10,560 |
11,669 |
(9.50%) |
|||||
Other interest income |
56 |
47 |
19.15% |
|||||
Total interest and dividend income |
54,892 |
53,680 |
2.26% |
|||||
Interest expense |
||||||||
Interest bearing demand deposits |
301 |
405 |
(25.68%) |
|||||
Money market deposits |
339 |
742 |
(54.31%) |
|||||
Savings deposits |
141 |
295 |
(52.20%) |
|||||
Certificates of deposit |
6,148 |
6,979 |
(11.91%) |
|||||
Total interest expense on deposits |
6,929 |
8,421 |
(17.72%) |
|||||
Federal Home Loan Bank borrowings |
319 |
1,377 |
(76.83%) |
|||||
Other short-term borrowings |
623 |
1,178 |
(47.11%) |
|||||
Junior subordinated debt owed to unconsolidated subsidiary trusts |
893 |
874 |
2.17% |
|||||
Total interest expense |
8,764 |
11,850 |
(26.04%) |
|||||
Net interest income |
46,128 |
41,830 |
10.27% |
|||||
Provision for credit losses |
2,102 |
6,202 |
(66.11%) |
|||||
Net interest income after provision for credit losses |
44,026 |
35,628 |
23.57% |
|||||
Non-interest income |
||||||||
Trust fees |
5,018 |
4,753 |
5.58% |
|||||
Service charges on deposits |
4,197 |
3,993 |
5.11% |
|||||
Electronic banking fees |
2,866 |
2,763 |
3.73% |
|||||
Net securities brokerage revenue |
1,497 |
1,075 |
39.26% |
|||||
Bank-owned life insurance |
1,949 |
880 |
121.48% |
|||||
Net gains on sales of mortgage loans |
712 |
268 |
165.67% |
|||||
Net securities gains |
16 |
100 |
(84.00%) |
|||||
Net (loss) / gain on other real estate owned and other assets |
(46) |
32 |
(243.75%) |
|||||
Other income |
1,287 |
1,458 |
(11.73%) |
|||||
Total non-interest income |
17,496 |
15,322 |
14.19% |
|||||
Non-interest expense |
||||||||
Salaries and wages |
15,826 |
14,315 |
10.56% |
|||||
Employee benefits |
6,345 |
5,618 |
12.94% |
|||||
Net occupancy |
3,192 |
2,776 |
14.99% |
|||||
Equipment |
2,407 |
2,174 |
10.72% |
|||||
Marketing |
805 |
771 |
4.41% |
|||||
FDIC insurance |
971 |
1,045 |
(7.08%) |
|||||
Amortization of intangible assets |
625 |
537 |
16.39% |
|||||
Restructuring and merger-related expense |
1,178 |
- |
100.00% |
|||||
Other operating expenses |
9,398 |
8,429 |
11.50% |
|||||
Total non-interest expense |
40,747 |
35,665 |
14.25% |
|||||
Income before provision for income taxes |
20,775 |
15,285 |
35.92% |
|||||
Provision for income taxes |
4,754 |
3,295 |
44.28% |
|||||
Net Income |
$ 16,021 |
$ 11,990 |
33.62% |
|||||
Taxable equivalent net interest income |
$ 47,812 |
$ 43,488 |
9.94% |
|||||
Per common share data |
||||||||
Net income per common share - basic |
$ 0.55 |
$ 0.45 |
22.22% |
|||||
Net income per common share - diluted |
$ 0.55 |
$ 0.45 |
22.22% |
|||||
Dividends declared |
$ 0.19 |
$ 0.17 |
11.76% |
|||||
Book value (period end) |
$ 24.80 |
$ 24.11 |
2.86% |
|||||
Tangible book value (period end) (1) |
$ 13.74 |
$ 13.50 |
1.78% |
|||||
Average common shares outstanding - basic |
29,211,321 |
26,628,025 |
9.70% |
|||||
Average common shares outstanding - diluted |
29,268,483 |
26,631,187 |
9.90% |
|||||
Period end common shares outstanding |
29,214,018 |
26,627,689 |
9.71% |
|||||
(1) See non-GAAP financial measures for additional information relating to the calculation of this item. |
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WESBANCO, INC. |
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Consolidated Selected Financial Highlights |
Page 5 |
|||||||||||
(unaudited, dollars in thousands) |
||||||||||||
Selected ratios |
||||||||||||
For the Three Months Ended |
||||||||||||
March 31, |
||||||||||||
2013 |
2012 |
% Change |
||||||||||
Return on average assets |
1.07 |
% |
0.87 |
% |
22.99 |
% |
||||||
Return on average equity |
9.00 |
7.54 |
19.36 |
|||||||||
Return on average tangible equity (1) |
16.72 |
13.93 |
20.03 |
|||||||||
Yield on earning assets (2) |
4.31 |
4.54 |
(5.07) |
|||||||||
Cost of interest bearing liabilities |
0.81 |
1.14 |
(28.95) |
|||||||||
Net interest spread (2) |
3.50 |
3.40 |
2.94 |
|||||||||
Net interest margin (2) |
3.64 |
3.57 |
1.96 |
|||||||||
Efficiency (1) (2) |
60.59 |
60.64 |
(0.08) |
|||||||||
Average loans to average deposits |
73.86 |
73.88 |
(0.03) |
|||||||||
Annualized net loan charge-offs/average loans |
0.34 |
0.82 |
(58.54) |
|||||||||
Effective income tax rate |
22.88 |
21.56 |
6.12 |
|||||||||
For the Quarter Ended |
||||||||||||
Mar. 31, |
Dec. 31, |
Sept. 30, |
June 30, |
Mar. 31, |
||||||||
2013 |
2012 |
2012 |
2012 |
2012 |
||||||||
Return on average assets |
1.07 |
% |
0.87 |
% |
0.92 |
% |
0.87 |
% |
0.87 |
% |
||
Return on average equity |
9.00 |
7.36 |
7.83 |
7.45 |
7.54 |
|||||||
Return on average tangible equity (1) |
16.72 |
13.16 |
14.09 |
13.57 |
13.93 |
|||||||
Yield on earning assets (2) |
4.31 |
4.27 |
4.37 |
4.43 |
4.54 |
|||||||
Cost of interest bearing liabilities |
0.81 |
0.93 |
1.03 |
1.07 |
1.14 |
|||||||
Net interest spread (2) |
3.50 |
3.34 |
3.34 |
3.36 |
3.40 |
|||||||
Net interest margin (2) |
3.64 |
3.50 |
3.51 |
3.53 |
3.57 |
|||||||
Efficiency (1) (2) |
60.59 |
62.67 |
59.45 |
61.06 |
60.64 |
|||||||
Average loans to average deposits |
73.86 |
74.40 |
74.95 |
73.35 |
73.88 |
|||||||
Annualized net loan charge-offs/average loans |
0.34 |
0.47 |
0.54 |
0.84 |
0.82 |
|||||||
Effective income tax rate |
22.88 |
21.09 |
21.16 |
22.33 |
21.56 |
|||||||
Trust assets, market value at period end |
$ 3,451,124 |
$ 3,238,556 |
$ 3,236,618 |
$ 3,133,741 |
$ 3,164,235 |
|||||||
(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. |
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WESBANCO, INC. |
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Consolidated Selected Financial Highlights |
Page 6 |
|||||||||||
(unaudited, dollars in thousands, except shares) |
% Change |
|||||||||||
Balance sheets |
March 31, |
December 31, |
December 31, 2012 |
|||||||||
Assets |
2013 |
2012 |
% Change |
2012 |
to March 31, 2013 |
|||||||
Cash and due from banks |
$ 121,692 |
$ 152,817 |
(20.37) |
% |
$ 91,716 |
32.68 |
% |
|||||
Due from banks - interest bearing |
56,571 |
4,426 |
1,178.15 |
33,889 |
66.93 |
|||||||
Securities: |
||||||||||||
Available-for-sale, at fair value |
993,270 |
1,087,836 |
(8.69) |
1,021,244 |
(2.74) |
|||||||
Held-to-maturity (fair values of $624,627; $608,186 and $639,273, respectively) |
592,033 |
577,923 |
2.44 |
602,509 |
(1.74) |
|||||||
Total securities |
1,585,303 |
1,665,759 |
(4.83) |
1,623,753 |
(2.37) |
|||||||
Loans held for sale |
14,299 |
8,611 |
66.06 |
21,903 |
(34.72) |
|||||||
Portfolio loans: |
||||||||||||
Commercial real estate |
1,831,754 |
1,675,341 |
9.34 |
1,858,345 |
(1.43) |
|||||||
Commercial and industrial |
495,748 |
410,369 |
20.81 |
478,025 |
3.71 |
|||||||
Residential real estate |
808,528 |
637,879 |
26.75 |
793,702 |
1.87 |
|||||||
Home equity |
278,812 |
250,757 |
11.19 |
277,226 |
0.57 |
|||||||
Consumer |
268,959 |
249,351 |
7.86 |
280,464 |
(4.10) |
|||||||
Total portfolio loans, net of unearned income |
3,683,801 |
3,223,697 |
14.27 |
3,687,762 |
(0.11) |
|||||||
Allowance for loan losses |
(51,664) |
(54,395) |
5.02 |
(52,699) |
1.96 |
|||||||
Net portfolio loans |
3,632,137 |
3,169,302 |
14.60 |
3,635,063 |
(0.08) |
|||||||
Premises and equipment, net |
90,879 |
81,592 |
11.38 |
88,866 |
2.27 |
|||||||
Accrued interest receivable |
19,909 |
19,501 |
2.09 |
19,354 |
2.87 |
|||||||
Goodwill and other intangible assets, net |
323,003 |
282,612 |
14.29 |
324,465 |
(0.45) |
|||||||
Bank-owned life insurance |
118,666 |
110,954 |
6.95 |
119,671 |
(0.84) |
|||||||
Other assets |
122,989 |
105,069 |
17.06 |
120,037 |
2.46 |
|||||||
Total Assets |
$ 6,085,448 |
$ 5,600,643 |
8.66 |
% |
$ 6,078,717 |
0.11 |
% |
|||||
Liabilities |
||||||||||||
Deposits: |
||||||||||||
Non-interest bearing demand |
$ 888,109 |
$ 749,733 |
18.46 |
% |
$ 874,923 |
1.51 |
% |
|||||
Interest bearing demand |
870,067 |
706,117 |
23.22 |
831,368 |
4.65 |
|||||||
Money market |
849,401 |
825,577 |
2.89 |
847,805 |
0.19 |
|||||||
Savings deposits |
766,265 |
633,504 |
20.96 |
740,568 |
3.47 |
|||||||
Certificates of deposit |
1,632,360 |
1,558,926 |
4.71 |
1,649,620 |
(1.05) |
|||||||
Total deposits |
5,006,202 |
4,473,857 |
11.90 |
4,944,284 |
1.25 |
|||||||
Federal Home Loan Bank borrowings |
60,767 |
147,913 |
(58.92) |
111,187 |
(45.35) |
|||||||
Other short-term borrowings |
128,372 |
187,632 |
(31.58) |
142,971 |
(10.21) |
|||||||
Junior subordinated debt owed to unconsolidated subsidiary trusts |
106,109 |
106,074 |
0.03 |
113,832 |
(6.78) |
|||||||
Total borrowings |
295,248 |
441,619 |
(33.14) |
367,990 |
(19.77) |
|||||||
Accrued interest payable |
3,620 |
5,007 |
(27.70) |
3,856 |
(6.12) |
|||||||
Other liabilities |
55,969 |
38,159 |
46.67 |
48,403 |
15.63 |
|||||||
Total Liabilities |
5,361,039 |
4,958,642 |
8.12 |
5,364,533 |
(0.07) |
|||||||
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; |
||||||||||||
29,214,018 shares; 26,633,848 shares and 29,214,660 shares issued, respectively; |
||||||||||||
29,214,018 shares; 26,627,689 shares and 29,214,660 shares outstanding, respectively |
60,862 |
55,487 |
9.69 |
60,863 |
(0.00) |
|||||||
Capital surplus |
241,880 |
191,891 |
26.05 |
241,672 |
0.09 |
|||||||
Retained earnings |
429,715 |
396,281 |
8.44 |
419,246 |
2.50 |
|||||||
Treasury stock (0; 6,159 and 0 shares - at cost, respectively) |
- |
(127) |
100.00 |
- |
- |
|||||||
Accumulated other comprehensive income |
(6,806) |
(326) |
(1,987.73) |
(6,365) |
(6.93) |
|||||||
Deferred benefits for directors |
(1,242) |
(1,205) |
(3.07) |
(1,232) |
(0.81) |
|||||||
Total Shareholders' Equity |
724,409 |
642,001 |
12.84 |
714,184 |
1.43 |
|||||||
Total Liabilities and Shareholders' Equity |
$ 6,085,448 |
$ 5,600,643 |
8.66 |
% |
$ 6,078,717 |
0.11 |
% |
|||||
WESBANCO, INC. |
|||||||||
Consolidated Selected Financial Highlights |
Page 7 |
||||||||
(unaudited, dollars in thousands) |
|||||||||
Average balance sheet and |
|||||||||
net interest margin analysis |
Three Months Ended March 31, |
||||||||
2013 |
2012 |
||||||||
Average |
Average |
Average |
Average |
||||||
Assets |
Balance |
Rate |
Balance |
Rate |
|||||
Due from banks - interest bearing |
$ 66,623 |
0.15% |
$ 44,389 |
0.19% |
|||||
Loans, net of unearned income (1) |
3,664,629 |
4.90% |
3,251,637 |
5.19% |
|||||
Securities: (2) |
|||||||||
Taxable |
1,199,706 |
2.48% |
1,269,255 |
2.71% |
|||||
Tax-exempt (3) |
358,524 |
5.37% |
310,617 |
6.10% |
|||||
Total securities |
1,558,230 |
3.14% |
1,579,872 |
3.37% |
|||||
Other earning assets |
20,542 |
0.60% |
21,920 |
0.47% |
|||||
Total earning assets (3) |
5,310,024 |
4.31% |
4,897,818 |
4.54% |
|||||
Other assets |
754,962 |
651,344 |
|||||||
Total Assets |
$ 6,064,986 |
$ 5,549,162 |
|||||||
Liabilities and Shareholders' Equity |
|||||||||
Interest bearing demand deposits |
$ 846,494 |
0.14% |
$ 702,418 |
0.23% |
|||||
Money market accounts |
845,751 |
0.16% |
790,181 |
0.38% |
|||||
Savings deposits |
750,430 |
0.08% |
612,547 |
0.19% |
|||||
Certificates of deposit |
1,645,058 |
1.52% |
1,587,353 |
1.77% |
|||||
Total interest bearing deposits |
4,087,733 |
0.69% |
3,692,499 |
0.92% |
|||||
Federal Home Loan Bank borrowings |
75,438 |
1.72% |
164,070 |
3.38% |
|||||
Other borrowings |
139,650 |
1.81% |
200,232 |
2.37% |
|||||
Junior subordinated debt |
112,376 |
3.23% |
106,070 |
3.31% |
|||||
Total interest bearing liabilities (1) |
4,415,197 |
0.81% |
4,162,871 |
1.14% |
|||||
Non-interest bearing demand deposits |
874,078 |
708,570 |
|||||||
Other liabilities |
53,500 |
38,541 |
|||||||
Shareholders' equity |
722,211 |
639,180 |
|||||||
Total Liabilities and Shareholders' Equity |
$ 6,064,986 |
$ 5,549,162 |
|||||||
Taxable equivalent net interest spread |
3.50% |
3.40% |
|||||||
Taxable equivalent net interest margin |
3.64% |
3.57% |
|||||||
(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 $1.0 million for the three months ended March 31, 2013 and 2012, respectively. Additionally, loan accretion included in net interest income on acquired Fidelity loans was $1.3 million for the three months ended March 31, 2013, while accretion on acquired Fidelity interest bearing liabilities was $0.5 million for the three months ended March 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 |
Mar. 31, |
Dec. 31, |
Sept. 30, |
June 30, |
Mar. 31, |
|||||||
Interest income |
2013 |
2012 |
2012 |
2012 |
2012 |
|||||||
Loans, including fees |
$ 44,276 |
$ 42,311 |
$ 41,423 |
$ 40,957 |
$ 41,964 |
|||||||
Interest and dividends on securities: |
||||||||||||
Taxable |
7,433 |
7,677 |
7,722 |
8,471 |
8,590 |
|||||||
Tax-exempt |
3,127 |
3,129 |
3,113 |
3,079 |
3,079 |
|||||||
Total interest and dividends on securities |
10,560 |
10,806 |
10,835 |
11,550 |
11,669 |
|||||||
Other interest income |
56 |
55 |
30 |
38 |
47 |
|||||||
Total interest and dividend income |
54,892 |
53,172 |
52,288 |
52,545 |
53,680 |
|||||||
Interest expense |
||||||||||||
Interest bearing demand deposits |
301 |
395 |
397 |
393 |
405 |
|||||||
Money market deposits |
339 |
397 |
487 |
493 |
742 |
|||||||
Savings deposits |
141 |
168 |
202 |
200 |
295 |
|||||||
Certificates of deposit |
6,148 |
6,321 |
6,450 |
6,621 |
6,979 |
|||||||
Total interest expense on deposits |
6,929 |
7,281 |
7,536 |
7,707 |
8,421 |
|||||||
Federal Home Loan Bank borrowings |
319 |
789 |
1,020 |
1,288 |
1,377 |
|||||||
Other short-term borrowings |
623 |
976 |
1,169 |
1,156 |
1,178 |
|||||||
Junior subordinated debt owed to unconsolidated subsidiary trusts |
893 |
840 |
869 |
854 |
874 |
|||||||
Total interest expense |
8,764 |
9,886 |
10,594 |
11,005 |
11,850 |
|||||||
Net interest income |
46,128 |
43,286 |
41,694 |
41,540 |
41,830 |
|||||||
Provision for credit losses |
2,102 |
3,272 |
4,497 |
5,903 |
6,202 |
|||||||
Net interest income after provision for credit losses |
44,026 |
40,014 |
37,197 |
35,637 |
35,628 |
|||||||
Non-interest income |
||||||||||||
Trust fees |
5,018 |
4,655 |
4,379 |
4,258 |
4,753 |
|||||||
Service charges on deposits |
4,197 |
4,565 |
4,362 |
4,218 |
3,993 |
|||||||
Electronic banking fees |
2,866 |
2,807 |
2,846 |
2,920 |
2,763 |
|||||||
Net securities brokerage revenue |
1,497 |
1,284 |
1,131 |
1,114 |
1,075 |
|||||||
Bank-owned life insurance |
1,949 |
870 |
891 |
874 |
880 |
|||||||
Net gains on sales of mortgage loans |
712 |
1,015 |
993 |
599 |
268 |
|||||||
Net securities gains |
16 |
752 |
316 |
1,294 |
100 |
|||||||
Net (loss) / gain on other real estate owned and other assets |
(46) |
(7) |
(48) |
(282) |
32 |
|||||||
Other income |
1,287 |
1,656 |
1,092 |
899 |
1,458 |
|||||||
Total non-interest income |
17,496 |
17,597 |
15,962 |
15,894 |
15,322 |
|||||||
Non-interest expense |
||||||||||||
Salaries and wages |
15,826 |
15,885 |
14,758 |
13,955 |
14,315 |
|||||||
Employee benefits |
6,345 |
5,924 |
5,000 |
4,920 |
5,618 |
|||||||
Net occupancy |
3,192 |
2,771 |
2,654 |
2,703 |
2,776 |
|||||||
Equipment |
2,407 |
2,604 |
2,300 |
2,144 |
2,174 |
|||||||
Marketing |
805 |
953 |
795 |
1,716 |
771 |
|||||||
FDIC insurance |
971 |
937 |
951 |
965 |
1,045 |
|||||||
Amortization of intangible assets |
625 |
570 |
519 |
524 |
537 |
|||||||
Restructuring and merger-related expense |
1,178 |
2,370 |
1,518 |
- |
- |
|||||||
Other operating expenses |
9,398 |
9,567 |
8,295 |
9,157 |
8,429 |
|||||||
Total non-interest expense |
40,747 |
41,581 |
36,790 |
36,084 |
35,665 |
|||||||
Income before provision for income taxes |
20,775 |
16,030 |
16,369 |
15,447 |
15,285 |
|||||||
Provision for income taxes |
4,754 |
3,380 |
3,463 |
3,449 |
3,295 |
|||||||
Net Income |
$ 16,021 |
$ 12,650 |
$ 12,906 |
$ 11,998 |
$ 11,990 |
|||||||
Taxable equivalent net interest income |
$ 47,812 |
$ 44,971 |
$ 43,370 |
$ 43,197 |
$ 43,488 |
|||||||
Per common share data |
||||||||||||
Net income per common share - basic |
$ 0.55 |
$ 0.46 |
$ 0.48 |
$ 0.45 |
$ 0.45 |
|||||||
Net income per common share - diluted |
$ 0.55 |
$ 0.46 |
$ 0.48 |
$ 0.45 |
$ 0.45 |
|||||||
Dividends declared |
$ 0.19 |
$ 0.18 |
$ 0.18 |
$ 0.17 |
$ 0.17 |
|||||||
Book value (period end) |
$ 24.80 |
$ 24.45 |
$ 24.73 |
$ 24.34 |
$ 24.11 |
|||||||
Tangible book value (period end) (1) |
$ 13.74 |
$ 13.34 |
$ 14.17 |
$ 13.76 |
$ 13.50 |
|||||||
Average common shares outstanding - basic |
29,211,321 |
27,523,958 |
26,664,882 |
26,647,050 |
26,628,025 |
|||||||
Average common shares outstanding - diluted |
29,268,483 |
27,549,655 |
26,672,849 |
26,650,325 |
26,631,187 |
|||||||
Period end common shares outstanding |
29,214,018 |
29,214,660 |
26,665,519 |
26,664,644 |
26,627,689 |
|||||||
Full time equivalent employees |
1,448 |
1,507 |
1,366 |
1,404 |
1,371 |
|||||||
(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 |
||||||||||||
Mar. 31, |
Dec. 31, |
Sept. 30, |
June 30, |
Mar. 31, |
||||||||
Asset quality data |
2013 |
2012 |
2012 |
2012 |
2012 |
|||||||
Non-performing assets: |
||||||||||||
Troubled debt restructurings - accruing |
$ 20,420 |
$ 24,281 |
$ 24,858 |
$ 28,165 |
$ 27,900 |
|||||||
Non-accrual loans: |
||||||||||||
Troubled debt restructurings |
17,106 |
15,001 |
9,449 |
11,159 |
16,935 |
|||||||
Other non-accrual loans |
25,620 |
24,371 |
24,841 |
28,793 |
36,139 |
|||||||
Total non-accrual loans |
42,726 |
39,372 |
34,290 |
39,952 |
53,074 |
|||||||
Total non-performing loans |
63,146 |
63,653 |
59,148 |
68,117 |
80,974 |
|||||||
Other real estate and repossessed assets |
5,147 |
5,988 |
3,951 |
3,918 |
3,178 |
|||||||
Total non-performing assets |
$ 68,293 |
$ 69,641 |
$ 63,099 |
$ 72,035 |
$ 84,152 |
|||||||
Past due loans (1): |
||||||||||||
Loans past due 30-89 days |
$ 14,507 |
$ 22,543 |
$ 17,332 |
$ 15,117 |
$ 15,034 |
|||||||
Loans past due 90 days or more |
4,345 |
5,294 |
3,560 |
3,639 |
3,146 |
|||||||
Total past due loans |
$ 18,852 |
$ 27,837 |
$ 20,892 |
$ 18,756 |
$ 18,180 |
|||||||
Criticized and classified loans (2): |
||||||||||||
Criticized loans |
$ 84,146 |
$ 86,777 |
$ 102,792 |
$ 122,854 |
$ 129,312 |
|||||||
Classified loans |
83,988 |
85,960 |
94,613 |
100,436 |
107,757 |
|||||||
Total criticized and classified loans |
$ 168,134 |
$ 172,737 |
$ 197,405 |
$ 223,290 |
$ 237,069 |
|||||||
Loans past due 30-89 days / total loans |
0.39 |
% |
0.61 |
% |
0.52 |
% |
0.46 |
% |
0.47 |
% |
||
Loans past due 90 days or more / total loans |
0.12 |
0.14 |
0.11 |
0.11 |
0.10 |
|||||||
Non-performing loans / total loans |
1.71 |
1.73 |
1.76 |
2.08 |
2.51 |
|||||||
Non-performing assets/total loans, other |
||||||||||||
real estate and repossessed assets |
1.85 |
1.89 |
1.88 |
2.20 |
2.61 |
|||||||
Criticized and classified loans / total loans |
4.56 |
4.68 |
5.89 |
6.82 |
7.35 |
|||||||
Allowance for loan losses |
||||||||||||
Allowance for loan losses |
$ 51,664 |
$ 52,699 |
$ 53,476 |
$ 53,610 |
$ 54,395 |
|||||||
Provision for credit losses |
2,102 |
3,272 |
4,497 |
5,903 |
6,202 |
|||||||
Net loan and deposit account overdraft charge-offs |
3,032 |
4,124 |
4,566 |
6,805 |
6,617 |
|||||||
Annualized net loan charge-offs /average loans |
0.34 |
% |
0.47 |
% |
0.54 |
% |
0.84 |
% |
0.82 |
% |
||
Allowance for loan losses/total loans |
1.40 |
% |
1.43 |
% |
1.59 |
% |
1.64 |
% |
1.69 |
% |
||
Allowance for loan losses/non-performing loans |
0.82 |
x |
0.83 |
x |
0.90 |
x |
0.79 |
x |
0.67 |
x |
||
Allowance for loan losses/non-performing loans and |
||||||||||||
loans past due |
0.63 |
x |
0.59 |
x |
0.67 |
x |
0.62 |
x |
0.55 |
x |
||
Quarter Ended |
||||||||||||
Mar. 31, |
Dec. 31, |
Sept. 30, |
June 30, |
Mar. 31, |
||||||||
2013 |
2012 |
2012 |
2012 |
2012 |
||||||||
Capital ratios |
||||||||||||
Tier I leverage capital |
8.92 |
% |
9.34 |
% |
9.11 |
% |
8.94 |
% |
8.81 |
% |
||
Tier I risk-based capital |
12.88 |
12.82 |
13.20 |
13.11 |
12.89 |
|||||||
Total risk-based capital |
14.13 |
14.07 |
14.45 |
14.36 |
14.14 |
|||||||
Average shareholders' equity to average assets |
11.91 |
11.87 |
11.80 |
11.66 |
11.52 |
|||||||
Tangible equity to tangible assets (3) |
6.97 |
6.77 |
7.13 |
7.00 |
6.76 |
|||||||
(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 |
||||||||||||
Mar. 31, |
Dec. 31, |
Sept. 30, |
June 30, |
Mar. 31, |
||||||||
(unaudited, dollars in thousands, except shares and per share amounts) |
2013 |
2012 |
2012 |
2012 |
2012 |
|||||||
Return on average tangible equity: |
||||||||||||
Net income (annualized) |
$ 64,974 |
$ 50,325 |
$ 51,345 |
$ 48,255 |
$ 48,223 |
|||||||
Plus: amortization of intangibles (annualized) (1) |
1,647 |
1,473 |
1,342 |
1,370 |
1,405 |
|||||||
Net income before amortization of intangibles (annualized) |
66,621 |
51,798 |
52,687 |
49,625 |
49,628 |
|||||||
Average total shareholders' equity |
722,211 |
683,694 |
655,666 |
648,014 |
639,180 |
|||||||
Less: average goodwill and other intangibles |
(323,662) |
(290,054) |
(281,820) |
(282,339) |
(282,849) |
|||||||
Average tangible equity |
398,548 |
393,640 |
373,846 |
365,676 |
356,331 |
|||||||
Return on average tangible equity |
16.72% |
13.16% |
14.09% |
13.57% |
13.93% |
|||||||
Period End |
||||||||||||
Mar. 31, |
Dec. 31, |
Sept. 30, |
June 30, |
Mar. 31, |
||||||||
2013 |
2012 |
2012 |
2012 |
2012 |
||||||||
Tangible book value: |
||||||||||||
Total shareholders' equity |
$ 724,409 |
$ 714,184 |
$ 659,322 |
$ 649,112 |
$ 642,001 |
|||||||
Less: goodwill and other intangible assets |
(323,003) |
(324,465) |
(281,570) |
(282,088) |
(282,612) |
|||||||
Tangible equity |
401,406 |
389,719 |
377,752 |
367,024 |
359,389 |
|||||||
Common shares outstanding |
29,214,018 |
29,214,660 |
26,665,519 |
26,664,644 |
26,627,689 |
|||||||
Tangible book value |
$ 13.74 |
$ 13.34 |
$ 14.17 |
$ 13.76 |
$ 13.50 |
|||||||
Tangible equity to tangible assets: |
||||||||||||
Total shareholders' equity |
$ 724,409 |
$ 714,184 |
$ 659,322 |
$ 649,112 |
$ 642,001 |
|||||||
Less: goodwill and other intangible assets |
(323,003) |
(324,465) |
(281,570) |
(282,088) |
(282,612) |
|||||||
Tangible equity |
401,406 |
389,719 |
377,752 |
367,024 |
359,389 |
|||||||
Total assets |
6,085,448 |
6,078,717 |
5,576,959 |
5,525,405 |
5,600,643 |
|||||||
Less: goodwill and other intangible assets |
(323,003) |
(324,465) |
(281,570) |
(282,088) |
(282,612) |
|||||||
Tangible assets |
5,762,445 |
5,754,252 |
5,295,389 |
5,243,317 |
5,318,031 |
|||||||
Tangible equity to tangible assets |
6.97% |
6.77% |
7.13% |
7.00% |
6.76% |
|||||||
Net income, excluding restructuring and merger-related expenses per diluted share: |
||||||||||||
Net income |
$ 16,021 |
$ 12,650 |
$ 12,906 |
$ 11,998 |
$ 11,990 |
|||||||
Add: restructuring and merger-related expenses, net of tax (1) |
766 |
1,541 |
987 |
- |
- |
|||||||
Net income, excluding restructuring and merger-related expenses |
$ 16,787 |
$ 14,191 |
$ 13,893 |
$ 11,998 |
$ 11,990 |
|||||||
Average common shares outstanding - diluted |
29,268,483 |
27,549,655 |
26,672,849 |
26,650,325 |
26,631,187 |
|||||||
Net income, excluding restructuring and merger-related expense per diluted share |
$ 0.57 |
$ 0.52 |
$ 0.52 |
$ 0.45 |
$ 0.45 |
|||||||
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%. |
SOURCE WesBanco, Inc.
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