WesBanco Announces Increased Earnings

WHEELING, W.Va., July 23, 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 an increase in earnings per share and related net income for the second quarter and first half of 2013.

Diluted earnings per share for the second quarter ending June 30, 2013 were up 28.9% to $0.58 as compared to $0.45 for the same period last year, while net income for the second quarter was $17.0 million compared to $12.0 million for the second quarter last year, representing an increase of 41.8%.  For the six month period ended June 30, 2013, diluted earnings per share totaled $1.13 as compared to $0.90 for the first half of last year, representing an increase of 25.6%, while net income for the 2013 six month period totaled $33.0 million compared to $24.0 million for 2012, representing an increase of 37.7%. 

Year-to-date, without merger-related expenses, net income was $33.8 million vs. $24.0 million last year for the same period, representing an increase of 41.1%, and earnings per share were $1.16 (non-GAAP measure) vs. $0.90, an increase of 28.3%.  The increased net income improved the return on average assets to 1.10% from 0.87% in the first half of last year, and the return on average tangible equity (non-GAAP measure) increased to 16.88% from 13.75%.  Both of these ratios are well above peer group averages as compared to March 31, 2013.  First half results have been enhanced by the acquisition in late 2012 and integration in the first quarter of 2013 of the approximate $655 million, 13 branch Fidelity Bancorp, Inc., Pittsburgh, PA ("Fidelity").

Mr. Limbert commented, "The 2013 first half financial results were very strong.  We are extremely pleased with our revenue growth in multiple areas of the Company. Many of the operating strategies which were implemented last year are beginning to produce additional revenues or have helped control expenses.  The addition of lending officers and other types of revenue producers are beginning to generate either additional loan volume or additional fee income.  Our ability to quickly integrate the Fidelity acquisition has allowed us to obtain necessary cost savings, while making the customer transition as smooth as possible.  All of our markets are showing improvements in loan volumes and outstandings, securities brokerage and wealth management revenues and secondary market mortgage activity.  Our team has performed very well this year and our shareholders are being rewarded by this performance."

Financial Condition

Total assets at June 30, 2013 increased 10.1% or $558.6 million from June 30, 2012, due to the acquisition of Fidelity and an accelerated organic loan growth rate.  Portfolio loans increased $525.6 million or 16.0% from June 30, 2012, with $338.0 million from western Pennsylvania, which includes the Fidelity-acquired loans.  The remaining $187.6 million increase in net loan outstandings, a 6.1% growth rate year-over-year, came from other WesBanco markets as loan originations and resulting outstanding balances outpaced loan repayments. Total loans grew $117.6 million or 3.2% from March 31, 2013, as a result of a 9.8% growth in loan originations in the second quarter compared to the first quarter of 2013.  Total loan originations for the first six months were up 54% compared to the first six months of 2012.  Deposits increased $545.0 million or 12.4% from June 30, 2012, with $428.2 million from the western Pennsylvania region.  Total assets at June 30, 2013 were relatively unchanged compared to 2012 year-end, as loan growth was funded with securities maturities and other available liquidity sources.  Total loan originations were $448 million in the second quarter as compared to $408 million for the first quarter, a 10% increase, with both total loan commitments and the commercial loan pipeline higher at quarter-end over the prior quarter.

WesBanco has continued to maintain strong regulatory capital ratios.  At June 30, 2013, tier I leverage was 9.13%, tier I risk-based capital was 12.85%, and total risk-based capital was 14.08%, which were similar to year-end.  Both consolidated and bank-level regulatory capital ratios are well above the applicable "well-capitalized" standards promulgated by bank regulators, as well as the recently finalized BASEL III capital standards.  Total tangible equity to tangible assets (non-GAAP measure) was 7.01% at June 30, 2013, about the same as a year ago, and up from 6.77% at year-end, despite lower other comprehensive income ("OCI") from lower securities valuations.  Strong earnings and improved total capital have enabled WesBanco to increase the current $0.19 quarterly dividend rate five times over the last two and a half years, cumulatively representing a 36% increase.

Credit Quality

Credit quality has continued to improve over the past year.  Total non-performing loans at June 30, 2013 were $62.3 million or 1.64% of total loans, which represents an 8.5% decrease from $68.1 million or 2.08% at June 30, 2012.  Criticized and classified loans decreased 28.8% over the last twelve months to $159.1 million at June 30, 2013 from $223.3 million last year.  Criticized and classified loans were 4.18% of total loans at June 30, 2013 compared to 6.82% as of June 30, 2012.

Net charge-offs for the second quarter of 2013 were $2.4 million, or 0.26% of average portfolio loans, and $5.5 million or 0.30% for the first half of the year, representing the lowest charge-off level in several years.  As a comparison, net charge-offs were $6.8 million or 0.84% for the second quarter of 2012, and $13.4 million or 0.83% for the first half of last year.  As a result of the improvement in all measures of credit quality, the provision for credit losses was $1.0 million for the second quarter of 2013, compared to $5.9 million for the same quarter in 2012, and $3.1 million year-to-date compared to $12.1 million last year.  The allowance for loan losses represented 1.33% of total portfolio loans at the end of the second quarter. 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 1.41% of the adjusted loan total.

Net Interest Income

Net interest income increased $4.4 million or 10.7% in the second quarter of 2013 compared to the same quarter for 2012, due to an 8.8% increase in average earning assets, primarily through increased average loan balances, both organic and from the Fidelity acquisition.  Year-to-date, net interest income increased $8.7 million or 10.5% from last year.  In addition, the net interest margin increased to 3.56% in the second quarter of 2013, from 3.53% last year, 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 40.4% reduction in higher rate average FHLB and other borrowings, primarily through maturities, a 12.6% increase in total average deposits, of which 88.5% 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 improved the net interest margin by 11 basis points year-to-date.

Non-Interest Income and Non-Interest Expense

Non-interest income for the quarter ended June 30, 2013 increased $1.8 million or 11.5% compared to 2012, and year-to-date it was up $4.0 million or 12.8%.  Trust fees increased 13.3% for the quarter and 9.2% year-to-date, as assets under management continued to increase from customer development initiatives and overall market improvements.  Total trust assets were up 9.8% year-over-year.  Net securities brokerage revenues increased 47.3% and 43.4%, respectively, for the quarter and year-to-date periods.  Net gains on sales of mortgage loans increased 63.0% year-to-date, and the six month period includes a $1.1 million bank-owned life insurance death benefit as part of a 61.3% increase in total BOLI income. Securities gains were lower for both the quarter and year-to-date periods due to reduced portfolio restructuring as compared to prior periods.

Non-interest expense increased $3.4 million or 9.5% for the second quarter compared to the second quarter of 2012, and $8.5 million or 11.8% for the first six months of 2013, partially due to Fidelity merger-related expenses of $1.2 million year-to-date and other normal expenses related to operating 13 additional branches. Expenses were the same as the first quarter of 2013, net of restructuring charges. Most of the back-office and other administrative savings targeted to be obtained from the merger have been accomplished by quarter-end. Salaries and wages increased 13.0% and 11.8% respectively for the quarter and year-to-date periods, due to routine annual adjustments to compensation, increased commissions on higher loan originations and brokerage revenue and an increase in full-time equivalent employees ("FTEs") of 74, primarily from the Fidelity acquisition and temporary summer help.  Pre-merger, Fidelity had approximately 150 FTEs. Employee benefit expenses increased primarily from increased pension and employee health insurance costs.  As compared to the first quarter of 2013, most major expense categories were lower, particularly employee benefits and OREO expense.  The one exception was marketing expense as our bank-wide spring campaign commenced; however, for the first half of 2013 marketing expenses were consistent with the previous year.

Financial Results Conference Call

WesBanco, Inc. will host a conference call to discuss the Company's financial results for the second quarter of 2013 on Wednesday, July 24, 2013, at 11:00 a.m. E.D.T.  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=94827.  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 104 ATMs in West Virginia, Ohio, and Pennsylvania.  WesBanco's banking subsidiary is WesBanco Bank, Inc., headquartered in Wheeling, West Virginia.  WesBanco also operates an insurance brokerage company, WesBanco Insurance Services, Inc., and a full service broker/dealer, WesBanco Securities, Inc.

Forward-looking Statements:
Forward-looking statements in this report relating to WesBanco's plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  The information contained in this report should be read in conjunction with WesBanco's Form 10-K for the year ended December 31, 2012 and documents subsequently filed by WesBanco with the Securities and Exchange Commission ("SEC"), including WesBanco's Form 10-Q for the quarter ended March 31, 2013, 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 Six Months Ended

STATEMENT OF INCOME

June 30,


June 30,

Interest and dividend income

2013


2012


% Change


2013


2012


% Change


Loans, including fees

$             43,753


$           40,957


6.83%


$         88,029


$           82,922


6.16%


Interest and dividends on securities:














Taxable 

7,357


8,471


(13.15%)


14,790


17,061


(13.31%)



Tax-exempt

3,264


3,079


6.01%


6,392


6,158


3.80%




Total interest and dividends on securities

10,621


11,550


(8.04%)


21,182


23,219


(8.77%)


Other interest income 

50


38


31.58%


106


85


24.71%



Total interest and dividend income

54,424


52,545


3.58%


109,317


106,226


2.91%

Interest expense













Interest bearing demand deposits

365


393


(7.12%)


666


734


(9.26%)


Money market deposits

338


493


(31.44%)


677


1,299


(47.88%)


Savings deposits

127


200


(36.50%)


268


495


(45.86%)


Certificates of deposit

5,881


6,621


(11.18%)


12,029


13,600


(11.55%)




Total interest expense on deposits

6,711


7,707


(12.92%)


13,640


16,128


(15.43%)


Federal Home Loan Bank borrowings

289


1,288


(77.56%)


609


2,665


(77.15%)


Other short-term borrowings

627


1,156


(45.76%)


1,249


2,334


(46.49%)


Junior subordinated debt owed to unconsolidated subsidiary trusts

808


854


(5.39%)


1,701


1,728


(1.56%)




Total interest expense

8,435


11,005


(23.35%)


17,199


22,855


(24.75%)

Net interest income 

45,989


41,540


10.71%


92,118


83,371


10.49%


Provision for credit losses

1,021


5,903


(82.70%)


3,123


12,105


(74.20%)

Net interest income after provision for credit losses

44,968


35,637


26.18%


88,995


71,266


24.88%

Non-interest income













Trust fees

4,823


4,258


13.27%


9,840


9,011


9.20%


Service charges on deposits

4,462


4,218


5.78%


8,659


8,211


5.46%


Electronic banking fees

3,195


2,920


9.42%


6,062


5,683


6.67%


Net securities brokerage revenue

1,641


1,114


47.31%


3,138


2,189


43.35%


Bank-owned life insurance

880


874


0.69%


2,829


1,754


61.29%


Net gains on sales of mortgage loans

701


599


17.03%


1,413


867


62.98%


Net securities gains

686


1,294


(46.99%)


702


1,394


(49.64%)


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

101


(282)


135.82%


55


(250)


122.00%


Other income

1,235


899


37.37%


2,522


2,356


7.05%




Total non-interest income

17,724


15,894


11.51%


35,220


31,215


12.83%

Non-interest expense













Salaries and wages

15,772


13,955


13.02%


31,599


28,270


11.78%


Employee benefits

5,813


4,920


18.15%


12,158


10,538


15.37%


Net occupancy

2,830


2,703


4.70%


6,022


5,479


9.91%


Equipment 

2,802


2,144


30.69%


5,209


4,318


20.63%


Marketing

1,624


1,716


(5.36%)


2,429


2,487


(2.33%)


FDIC insurance 

919


965


(4.77%)


1,890


2,011


(6.02%)


Amortization of intangible assets

561


524


7.06%


1,186


1,061


11.78%


Restructuring and merger-related expense

51


-


100.00%


1,229


-


100.00%


Other operating expenses  

9,127


9,157


(0.33%)


18,524


17,585


5.34%




Total non-interest expense

39,499


36,084


9.46%


80,246


71,749


11.84%

Income before provision for income taxes

23,193


15,447


50.15%


43,969


30,732


43.07%


Provision for income taxes 

6,176


3,449


79.07%


10,932


6,744


62.10%

Net Income

$             17,017


$           11,998


41.83%


$         33,037


$           23,988


37.72%
















Taxable equivalent net interest income

$            47,747


$         43,197


10.53%


$         95,560


$         86,687


10.24%
















Per common share data












Net income per common share - basic

$                 0.58


$               0.45


28.89%


$              1.13


$               0.90


25.56%

Net income per common share - diluted

$                 0.58


$               0.45


28.89%


$              1.13


$               0.90


25.56%

Dividends declared

$                 0.19


$               0.17


11.76%


$              0.38


$               0.34


11.76%

Book value (period end)







$            24.80


$             24.34


1.89%

Tangible book value (period end) (1)







$            13.79


$             13.76


0.22%

Average common shares outstanding - basic

29,245,201


26,647,050


9.75%


29,288,355


26,637,537


9.95%

Average common shares outstanding - diluted

29,308,806


26,650,325


9.98%


29,288,018


26,640,879


9.94%

Period end common shares outstanding

29,282,412


26,664,644


9.82%


29,282,412


26,664,644


9.82%
















(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 Six Months Ended









June 30,










2013


2012


% Change


























Return on average assets





1.10

%

0.87

%

26.44

%







Return on average equity





9.16


7.50


22.13








Return on average tangible equity (1)




16.88


13.75


22.76








Yield on earning assets (2) 





4.25


4.48


(5.13)








Cost of interest bearing liabilities




0.79


1.11


(28.83)








Net interest spread (2)





3.46


3.37


2.67








Net interest margin (2)





3.60


3.55


1.41








Efficiency (1) (2)






60.42


60.85


(0.71)








Average loans to average deposits




74.57


73.62


1.29








Annualized net loan charge-offs/average loans




0.30


0.83


(63.86)








Effective income tax rate 





24.86


21.95


13.26






















































































For the Quarter Ended










June 30,


Mar. 31,


Dec. 31,


Sept. 30,


June 30,










2013


2013


2012


2012


2012






















Return on average assets





1.12

%

1.07

%

0.87

%

0.92

%

0.87

%



Return on average equity





9.33


9.00


7.36


7.83


7.45




Return on average tangible equity (1)




17.04


16.72


13.16


14.09


13.57




Yield on earning assets (2) 





4.20


4.31


4.27


4.37


4.43




Cost of interest bearing liabilities




0.77


0.81


0.93


1.03


1.07




Net interest spread (2)





3.43


3.50


3.34


3.34


3.36




Net interest margin (2)





3.56


3.64


3.50


3.51


3.53




Efficiency (1) (2) 






60.25


60.59


62.67


59.45


61.06




Average loans to average deposits




75.27


73.86


74.40


74.95


73.35




Annualized net loan charge-offs/average loans




0.26


0.34


0.47


0.54


0.84




Effective income tax rate 





26.63


22.88


21.09


21.16


22.33




Trust assets, market value at period end




$     3,440,666


$        3,451,124


$        3,238,556


$        3,236,618


$        3,133,741






















(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


June 30,




December 31,

December 31, 2012


Assets



2013


2012


% Change


2012

to June 30, 2013


Cash and due from banks


$          69,645


$          99,930


(30.31)

%

$                91,716

(24.06)

%

Due from banks - interest bearing


8,425


2,885


192.03


33,889

(75.14)


Securities:













Available-for-sale, at fair value


971,178


1,023,124


(5.08)


1,021,244

(4.90)



Held-to-maturity (fair values of $615,203; $607,032 and $639,273, respectively)


608,761


572,671


6.30


602,509

1.04



      Total securities


1,579,939


1,595,795


(0.99)


1,623,753

(2.70)


Loans held for sale


14,517


7,305


98.73


21,903

(33.72)


Portfolio loans:












Commercial real estate


1,881,083


1,695,045


10.98


1,858,345

1.22



Commercial and industrial


542,071


420,689


28.85


478,025

13.40



Residential real estate 


831,362


662,556


25.48


793,702

4.74



Home equity


280,368


250,988


11.71


277,226

1.13



Consumer 


266,498


246,552


8.09


280,464

(4.98)


Total portfolio loans, net of unearned income


3,801,382


3,275,830


16.04


3,687,762

3.08


Allowance for loan losses


(50,381)


(53,610)


6.02


(52,699)

4.40



      Net portfolio loans


3,751,001


3,222,220


16.41


3,635,063

3.19


Premises and equipment, net


91,894


80,668


13.92


88,866

3.41


Accrued interest receivable


19,248


18,233


5.57


19,354

(0.55)


Goodwill and other intangible assets, net


322,478


282,088


14.32


324,465

(0.61)


Bank-owned life insurance


119,546


111,829


6.90


119,671

(0.10)


Other assets


107,318


104,452


2.74


120,037

(10.60)


Total Assets


$    6,084,011


$   5,525,405


10.11

%

$         6,078,717

0.09

%















Liabilities











Deposits:













Non-interest bearing demand


$         901,559


$        759,779


18.66

%

$              874,923

3.04

%


Interest bearing demand


840,263


728,521


15.34


831,368

1.07



Money market


845,294


753,964


12.11


847,805

(0.30)



Savings deposits


775,248


646,385


19.94


740,568

4.68



Certificates of deposit


1,576,391


1,505,133


4.73


1,649,620

(4.44)



      Total deposits


4,938,755


4,393,782


12.40


4,944,284

(0.11)


Federal Home Loan Bank borrowings


60,344


141,877


(57.47)


111,187

(45.73)


Other short-term borrowings


200,538


191,275


4.84


142,971

40.26


Junior subordinated debt owed to unconsolidated subsidiary trusts


106,118


106,083


0.03


113,832

(6.78)



      Total borrowings


367,000


439,235


(16.45)


367,990

(0.27)


Accrued interest payable


3,516


4,741


(25.84)


3,856

(8.82)


Other liabilities


48,508


38,535


25.88


48,403

0.22


Total Liabilities


5,357,779


4,876,293


9.87


5,364,533

(0.13)
















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;












29,282,412 shares; 26,667,739 shares and 29,214,660 shares issued, respectively; 












29,282,412 shares; 26,664,644 shares and 29,214,660 shares outstanding, respectively


61,005


55,558


9.80


60,863

0.23


Capital surplus


242,640


191,926


26.42


241,672

0.40


Retained earnings


441,168


403,746


9.27


419,246

5.23


Treasury stock (0; 3,095 and 0 shares - at cost, 












respectively)


-


(61)


(100.00)


-

-


Accumulated other comprehensive income (loss)


(17,329)


(843)


(1,955.63)


(6,365)

(172.25)


Deferred benefits for directors


(1,252)


(1,214)


(3.13)


(1,232)

(1.62)


Total Shareholders' Equity


726,232


649,112


11.88


714,184

1.69


Total Liabilities and Shareholders' Equity


$    6,084,011


$   5,525,405


10.11

%

$         6,078,717

0.09

%

 








WESBANCO, INC.







Consolidated Selected Financial Highlights





Page 7


(unaudited, dollars in thousands, except shares)







Balance sheets


June 30,

March 31,



Assets


2013


2013

% Change


Cash and due from banks


$           69,645


$          121,692

(42.77)

%

Due from banks - interest bearing


8,425


56,571

(85.11)


Securities:







      Available-for-sale, at fair value


971,178


993,270

(2.22)


      Held-to-maturity (fair values of $615,203 and $624,627, respectively)


608,761


592,033

2.83


            Total securities


1,579,939


1,585,303

(0.34)


Loans held for sale


14,517


14,299

1.52


Portfolio Loans:







      Commercial real estate


1,881,083


1,831,754

2.69


      Commercial and industrial


542,071


495,748

9.34


      Residential real estate 


831,362


808,528

2.82


      Home equity


280,368


278,812

0.56


      Consumer 


266,498


268,959

(0.92)


Total portfolio loans, net of unearned income


3,801,382


3,683,801

3.19


Allowance for loan losses


(50,381)


(51,664)

2.48


            Net portfolio loans


3,751,001


3,632,137

3.27


Premises and equipment, net


91,894


90,879

1.12


Accrued interest receivable


19,248


19,909

(3.32)


Goodwill and other intangible assets, net


322,478


323,003

(0.16)


Bank-owned life insurance


119,546


118,666

0.74


Other assets


107,318


122,989

(12.74)


Total Assets


$   6,084,011


$    6,085,448

(0.02)

%








Liabilities







Deposits:







      Non-interest bearing demand


$         901,559


$          888,109

1.51

%

      Interest bearing demand


840,263


870,067

(3.43)


      Money market


845,294


849,401

(0.48)


      Savings deposits


775,248


766,265

1.17


      Certificates of deposit


1,576,391


1,632,360

(3.43)


            Total deposits


4,938,755


5,006,202

(1.35)


Federal Home Loan Bank borrowings


60,344


60,767

(0.70)


Other short-term borrowings


200,538


128,372

56.22


Junior subordinated debt owed to unconsolidated subsidiary trusts


106,118


106,109

0.01


            Total borrowings


367,000


295,248

24.30


Accrued interest payable


3,516


3,620

(2.87)


Other liabilities


48,508


55,969

(13.33)


Total liabilities


5,357,779


5,361,039

(0.06)









Shareholders' Equity







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







      none outstanding


-


-

-


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







      29,282,412 shares and 29,214,018 shares issued, respectively;







      29,282,412 and 29,214,018 shares outstanding, respectively


61,005


60,862

0.23


Capital surplus


242,640


241,880

0.31


Retained earnings


441,168


429,715

2.67


Treasury stock ( 0 and 0 shares - at cost)


-


-

-


Accumulated other comprehensive income (loss)


(17,329)


(6,806)

(154.61)


Deferred benefits for directors


(1,252)


(1,242)

(0.81)


Total Shareholders' Equity


726,232


724,409

0.25


Total Liabilities and Shareholders' Equity


$   6,084,011


$    6,085,448

(0.02)

%

 

WESBANCO, INC.















Consolidated Selected Financial Highlights












Page 8

(unaudited, dollars in thousands)














Average balance sheet and















net interest margin analysis




Three Months Ended June 30,


Six Months Ended June 30,






2013

2012


2013

2012






Average 

Average


Average 

Average


Average 

Average


Average 

Average

Assets





Balance

Rate


Balance

Rate


Balance

Rate


Balance

Rate

Due from banks - interest bearing



$            22,520

0.41%


$            17,382

0.39%


$            44,450

0.22%


$            30,885

0.25%

Loans, net of unearned income (1)



3,747,533

4.68%


3,248,090

5.07%


3,706,310

4.79%


3,249,863

5.13%

Securities: (2)
















    Taxable





1,201,552

2.45%


1,311,223

2.58%


1,200,634

2.46%


1,290,239

2.64%

    Tax-exempt (3)





381,416

5.27%


317,197

5.97%


370,033

5.32%


313,907

6.04%

        Total securities





1,582,968

3.13%


1,628,420

3.24%


1,570,667

3.14%


1,604,146

3.31%

Other earning assets





15,197

0.71%


20,538

0.41%


17,855

0.66%


21,229

0.44%

         Total earning assets (3)



5,368,218

4.20%


4,914,430

4.43%


5,339,282

4.25%


4,906,123

4.48%

Other assets





704,179



643,895



729,240



647,620


Total Assets





$     6,072,397



$     5,558,325



$     6,068,522



$     5,553,743


















Liabilities and Shareholders' Equity














Interest bearing demand deposits



$          861,676

0.17%


$          746,891

0.21%


$          854,127

0.16%


$          727,136

0.20%

Money market accounts 




848,635

0.16%


771,905

0.26%


847,201

0.16%


778,561

0.34%

Savings deposits





775,605

0.07%


639,539

0.13%


763,087

0.07%


626,043

0.16%

Certificates of deposit




1,602,726

1.47%


1,532,781

1.74%


1,623,775

1.49%


1,560,067

1.75%

    Total interest bearing deposits



4,088,642

0.66%


3,691,116

0.84%


4,088,190

0.67%


3,691,807

0.88%

Federal Home Loan Bank borrowings



60,559

1.91%


144,924

3.57%


67,958

1.81%


154,497

3.47%

Other borrowings





142,724

1.76%


192,097

2.42%


141,195

1.78%


196,164

2.39%

Junior subordinated debt




106,114

3.05%


106,079

3.24%


109,228

3.14%


106,074

3.28%

      Total interest bearing liabilities 



4,398,039

0.77%


4,134,216

1.07%


4,406,571

0.79%


4,148,542

1.11%

Non-interest bearing demand deposits



890,295



737,143



882,231



722,857


Other liabilities





52,128



38,952



52,620



38,747


Shareholders' equity





731,935



648,014



727,100



643,597


Total Liabilities and Shareholders' Equity



$     6,072,397



$     5,558,325



$     6,068,522



$     5,553,743


Taxable equivalent net interest spread




3.43%



3.36%



3.46%



3.37%

Taxable equivalent net interest margin 




3.56%



3.53%



3.60%



3.55%

















(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 June 30, 2013 and 2012,





     and $2.0 million and $2.0 million for the six months ended June 30, 2013 and 2012, respectively. 








     Additionally, loan accretion included in interest income on acquired Fidelity loans was $0.6 million for the three months





     ended June 30, 2013 and $1.9 million for the six months ended June 30, 2013, while accretion on acquired Fidelity interest bearing liabilities 




     was $0.5 million for the three months ended June 30, 2013 and $1.0 million for the six months ended June 30, 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 9 

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














Quarter Ended

Statement of Income

June 30,


Mar. 31,


Dec. 31,


Sept. 30,


June 30,

Interest income

2013


2013


2012


2012


2012


Loans, including fees

$          43,753


$                44,276


$              42,311


$                41,423


$              40,957


Interest and dividends on securities:












Taxable 

7,357


7,433


7,677


7,722


8,471



Tax-exempt

3,264


3,127


3,129


3,113


3,079




Total interest and dividends on securities

10,621


10,560


10,806


10,835


11,550


Other interest income 

50


56


55


30


38

          Total interest and dividend income

54,424


54,892


53,172


52,288


52,545

Interest expense











Interest bearing demand deposits

365


301


395


397


393


Money market deposits

338


339


397


487


493


Savings deposits

127


141


168


202


200


Certificates of deposit

5,881


6,148


6,321


6,450


6,621




Total interest expense on deposits

6,711


6,929


7,281


7,536


7,707


Federal Home Loan Bank borrowings

289


319


789


1,020


1,288


Other short-term borrowings

627


623


976


1,169


1,156


Junior subordinated debt owed to unconsolidated subsidiary trusts

808


893


840


869


854




Total interest expense

8,435


8,764


9,886


10,594


11,005

Net interest income 

45,989


46,128


43,286


41,694


41,540


Provision for credit losses

1,021


2,102


3,272


4,497


5,903

Net interest income after provision for credit losses

44,968


44,026


40,014


37,197


35,637

Non-interest income











Trust fees

4,823


5,018


4,655


4,379


4,258


Service charges on deposits

4,462


4,197


4,565


4,362


4,218


Electronic banking fees

3,195


2,866


2,807


2,846


2,920


Net securities brokerage revenue

1,641


1,497


1,284


1,131


1,114


Bank-owned life insurance

880


1,949


870


891


874


Net gains on sales of mortgage loans

701


712


1,015


993


599


Net securities gains

686


16


752


316


1,294


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

101


(46)


(7)


(48)


(282)


Other income

1,235


1,287


1,656


1,092


899




Total non-interest income

17,724


17,496


17,597


15,962


15,894

Non-interest expense











Salaries and wages

15,772


15,826


15,885


14,758


13,955


Employee benefits

5,813


6,345


5,924


5,000


4,920


Net occupancy

2,830


3,192


2,771


2,654


2,703


Equipment 

2,802


2,407


2,604


2,300


2,144


Marketing

1,624


805


953


795


1,716


FDIC insurance 

919


971


937


951


965


Amortization of intangible assets

561


625


570


519


524


Restructuring and merger-related expense

51


1,178


2,370


1,518


-


Other operating expenses  

9,127


9,398


9,567


8,295


9,157




Total non-interest expense

39,499


40,747


41,581


36,790


36,084

Income before provision for income taxes

23,193


20,775


16,030


16,369


15,447


Provision for income taxes 

6,176


4,754


3,380


3,463


3,449

Net Income

$                      17,017


$                16,021


$              12,650


$                12,906


$              11,998














Taxable equivalent net interest income

$                     47,747


$             47,812


$           44,971


$             43,370


$           43,197














Per common share data










Net income per common share - basic

$                          0.58


$                    0.55


$                  0.46


$                    0.48


$                  0.45

Net income per common share - diluted

$                          0.58


$                    0.55


$                  0.46


$                    0.48


$                  0.45

Dividends declared

$                          0.19


$                    0.19


$                  0.18


$                    0.18


$                  0.17

Book value (period end)

$                        24.80


$                  24.80


$                24.45


$                  24.73


$                24.34

Tangible book value (period end) (1)

$                        13.79


$                  13.74


$                13.34


$                  14.17


$                13.76

Average common shares outstanding - basic

29,245,201


29,211,321


27,523,958


26,664,882


26,647,050

Average common shares outstanding - diluted

29,308,806


29,268,483


27,549,655


26,672,849


26,650,325

Period end common shares outstanding

29,282,412


29,214,018


29,214,660


26,665,519


26,664,644

Full time equivalent employees

1,478


1,448


1,507


1,366


1,404



























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







 

WESBANCO, INC.












Consolidated Selected Financial Highlights









 Page 10 


(unaudited, dollars in thousands)
















Quarter Ended






June 30,


Mar. 31,


Dec. 31,


Sept. 30,


June 30,


Asset quality data


2013


2013


2012


2012


2012


Non-performing assets:













Troubled debt restructurings - accruing


$         19,269


$         20,420


$         24,281


$         24,858


$         28,165



Non-accrual loans:














Troubled debt restructurings


15,655


17,106


15,001


9,449


11,159




Other non-accrual loans


27,414


25,620


24,371


24,841


28,793




    Total non-accrual loans


43,069


42,726


39,372


34,290


39,952




    Total non-performing loans 


62,338


63,146


63,653


59,148


68,117



Other real estate and repossessed assets


5,007


5,147


5,988


3,951


3,918




Total non-performing assets


$         67,345


$         68,293


$         69,641


$         63,099


$         72,035
















Past due loans (1):













Loans past due 30-89 days


$         15,792


$         14,507


$         22,543


$         17,332


$         15,117



Loans past due 90 days or more


3,594


4,345


5,294


3,560


3,639




Total past due loans


$         19,386


$         18,852


$         27,837


$         20,892


$         18,756
















Criticized and classified loans (2):













Criticized loans


$         78,457


$         84,146


$         86,777


$       102,792


$       122,854



Classified loans


80,621


83,988


85,960


94,613


100,436




Total criticized and classified loans


$       159,078


$       168,134


$       172,737


$       197,405


$       223,290
















Loans past due 30-89 days / total loans


0.42

%

0.39

%

0.61

%

0.52

%

0.46

%

Loans past due 90 days or more / total loans


0.09


0.12


0.14


0.11


0.11


Non-performing loans / total loans


1.64


1.71


1.73


1.76


2.08


Non-performing assets/total loans, other













real estate and repossessed assets


1.77


1.85


1.89


1.88


2.20


Criticized and classified loans / total loans


4.18


4.56


4.68


5.89


6.82
















Allowance for loan losses












Allowance for loan losses


$         50,381


$         51,664


$         52,699


$         53,476


$         53,610


Provision for credit losses


1,021


2,102


3,272


4,497


5,903


Net loan and deposit account overdraft charge-offs

2,433


3,032


4,124


4,566


6,805
















Annualized net loan charge-offs /average loans

0.26

%

0.34

%

0.47

%

0.54

%

0.84

%

Allowance for loan losses / portfolio loans


1.33

%

1.40

%

1.43

%

1.59

%

1.64

%

Allowance for loan losses / non-performing loans

0.81

x

0.82

x

0.83

x

0.90

x

0.79

x

Allowance for loan losses / non-performing loans and












loans past due 


0.62

x

0.63

x

0.59

x

0.67

x

0.62

x

































Quarter Ended






June 30,


Mar. 31,


Dec. 31,


Sept. 30,


June 30,






2013


2013


2012


2012


2012


Capital ratios












Tier I leverage capital


9.13

%

8.92

%

9.34

%

9.11

%

8.94

%

Tier I risk-based capital


12.85


12.88


12.82


13.20


13.11


Total risk-based capital


14.08


14.13


14.07


14.45


14.37


Average shareholders' equity to average assets

12.05


11.91


11.87


11.80


11.66


Tangible equity to tangible assets (3)


7.01


6.97


6.77


7.13


7.00






























(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 11




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





Three Months Ended


Year to Date 





June 30,


Mar. 31,


Dec. 31,


Sept. 30,


June 30,


June 30,

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

2013


2013


2012


2012


2012


2013

2012

Return on average tangible equity:














Net income (annualized)


$              68,256


$        64,974


$       50,325


$       51,345


$       48,255


$       66,622

$        48,239


Plus: amortization of intangibles (annualized) (1)

1,464


1,647


1,473


1,342


1,370


1,555

1,387


Net income before amortization of intangibles (annualized)

69,720


66,621


51,798


52,687


49,625


68,177

49,626


















Average total shareholders' equity

731,935


722,211


683,694


655,666


648,014


727,100

643,597


Less: average goodwill and other intangibles

(322,717)


(323,662)


(290,054)


(281,820)


(282,339)


(323,187)

(282,594)


Average tangible equity


409,218


398,548


393,640


373,846


365,676


403,913

361,003

















Return on average tangible equity


17.04%


16.72%


13.16%


14.09%


13.57%


16.88%

13.75%

















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














Net income 



$              17,017


$        16,021


$       12,650


$       12,906


$       11,998


$       33,037

$        23,988


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

33


766


1,541


987


-


799

-


Net income, excluding restructuring and merger-related expenses

$              17,050


$        16,787


$       14,191


$       13,893


$       11,998


$       33,836

$        23,988


















Average common shares outstanding - diluted

29,308,806


29,268,483


27,549,655


26,672,849


26,650,325


29,288,018

26,640,879

















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

$                  0.58


$            0.57


$           0.52


$           0.52


$           0.45


$           1.16

$            0.90





















Period End








June 30,


Mar. 31,


Dec. 31,


Sept. 30,


June 30,








2013


2013


2012


2012


2012




Tangible book value:















Total shareholders' equity


$            726,232


$      724,409


$     714,184


$     659,322


$     649,112





Less:  goodwill and other intangible assets

(322,478)


(323,003)


(324,465)


(281,570)


(282,088)





Tangible equity


403,754


401,406


389,719


377,752


367,024





















Common shares outstanding


29,282,412


29,214,018


29,214,660


26,665,519


26,664,644




















Tangible book value



$                13.79


$          13.74


$         13.34


$         14.17


$         13.76




































Tangible equity to tangible assets:














Total shareholders' equity


$            726,232


$      724,409


$     714,184


$     659,322


$     649,112





Less:  goodwill and other intangible assets

(322,478)


(323,003)


(324,465)


(281,570)


(282,088)





Tangible equity


403,754


401,406


389,719


377,752


367,024





















Total assets



6,084,011


6,085,448


6,078,717


5,576,959


5,525,405





Less:  goodwill and other intangible assets

(322,478)


(323,003)


(324,465)


(281,570)


(282,088)





Tangible assets


5,761,533


5,762,445


5,754,252


5,295,389


5,243,317




















Tangible equity to tangible assets


7.01%


6.97%


6.77%


7.13%


7.00%



















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.



RELATED LINKS
http://www.wesbanco.com

More by this Source

Best of Content We Love 2014 


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.