2014

WesBanco Announces Increased Earnings

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.




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.










 

 

WESBANCO, INC.






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.


















 

 

WESBANCO, INC.







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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