WesBanco Announces Increased Earnings
WesBanco Announces Increased Earnings
PR Newswire
WHEELING, W.Va., Jan. 29, 2013
WHEELING, W.Va., Jan. 29, 2013 /PRNewswire/ -- Paul M. Limbert, President and
Chief Executive Officer of WesBanco, Inc. (NASDAQ Global Market: WSBC), a
Wheeling, West Virginia based multi-state bank holding company, today
announced increased earnings for the three and twelve months ended December
31, 2012.
For the twelve months ended December 31, 2012, net income was $49.5 million as
compared to $43.8 million for 2011, representing an increase of 13.1%, while
diluted earnings per share were $1.84, as compared to $1.65 per share for
2011. Net income, excluding restructuring and merger-related expenses, was
$52.1 million compared to $43.8 million for 2011, representing an increase of
18.9%, while diluted earnings per share, excluding restructuring and
merger-related expenses, were $1.94 (non-GAAP measure), compared to $1.65 per
share for 2011.
During the year, WesBanco had many accomplishments, including the acquisition
of Fidelity Bancorp, Inc. ("Fidelity"), a reduction in non-performing loans,
elimination of certain unprofitable branches, growth in non-interest income,
and increased loan originations and outstanding loan balances, while
maintaining strong capital ratios. As of November 30, 2012, WesBanco
completed the acquisition of Fidelity, a Pittsburgh-based bank. Fidelity had
assets of $0.6 billion and operates 13 branches throughout the Pittsburgh
metropolitan area. Fidelity's assets and liabilities are included in our
financial statements at fair value, and income and expense are included
subsequent to the merger date.
Mr. Limbert commented, "2012 was a successful year in many ways. We are very
pleased with the completion of the acquisition of Fidelity. We are very
excited to work with the experienced Fidelity team in expanding our presence
in Pittsburgh and offering our expanded array of products to their customers.
Another major accomplishment this year was the continued improvement in credit
quality resulting in our ability to reduce the provision for credit losses in
each of the last five quarters. We were also able to grow loans outstanding
through our loan origination efforts which provided net loan growth in 2012 of
over 4.0%. Our accomplishments during 2012 have resulted in the significant
improvement in our operating results and growth in net income."
Financial Condition
Total assets at December 31, 2012 increased 9.8% or $542.7 million from the
prior year-end due to the acquisition of Fidelity and organic growth.
Portfolio loans increased $448.4 million or 13.8% with $313.4 million from the
acquisition and the remaining $135.0 million as WesBanco's originations
outpaced paydowns. Separate from the Fidelity acquisition, WesBanco grew
outstanding loans 4.2% from the previous year as a result of a 29.7% growth in
loan originations from the prior year. The organic loan growth and declines in
higher cost borrowings of $110.9 million over the last twelve months were
funded by organic deposit growth and the use of other liquid assets. Deposits
increased $550.4 million or 12.5% in 2012, with $455.0 million from the
acquisition and $95.4 million from organic growth. Goodwill and core deposit
intangibles created by the merger totaled approximately $43.5 million.
WesBanco has continued to maintain strong regulatory capital ratios even after
the completion of the Fidelity acquisition. At December 31, 2012, tier I
leverage was 8.67%, tier I risk-based capital was 12.82%, and total risk-based
capital was 14.07%, all of which were relatively unchanged from the prior year
end. Both consolidated and bank-level regulatory capital ratios are well
above the applicable "well-capitalized" standards promulgated by bank
regulators. Total tangible equity to tangible assets (non-GAAP measure) was
6.77% at December 31, 2012, a nine basis point increase from a year ago.
Strong earnings and improved capital have enabled WesBanco to increase its
dividend four times over the last two years totaling 29% to the current $0.18
per share, an approximate 3.2% dividend yield.
Credit Quality
WesBanco has continued to improve credit quality over the last two years.
Total non-performing loans were $63.7 million or 1.73% of total loans at
December 31, 2012, which represents a 26.7% decrease from $86.9 million or
2.68% at December 31 of the prior year. The 2012 ending balance includes
accruing and non-accrual troubled debt restructurings ("TDR's") totaling $9.4
million related to the implementation during the quarter of a regulatory
requirement for primarily mortgage, home equity and consumer loans discharged
in bankruptcy, which the borrower has continued to repay after the discharge.
Classified and criticized loans decreased $85.4 million or 33.1% from December
31, 2011. Sales of commercial loans during 2012 decreased non-performing
loans by $9.4 million and classified and criticized loans by $10.3 million
compared to December 31, 2011. Additionally, $11.3 million of non-performing
commercial loans acquired in the Fidelity acquisition, with a fair value of
$6.9 million, were sold concurrent with the merger in the fourth quarter.
Net charge-offs for 2012 were $22.1 million, or 0.67% of average portfolio
loans, compared to $42.5 million or 1.30% for 2011. As a result of the
improvement in all measures of credit quality, the provision for credit losses
was $19.9 million for 2012 compared to $35.3 million for 2011. The allowance
for loan losses represented 1.43% of total portfolio loans at year end;
however, if the credit mark on the Fidelity loans were to be included, the
allowance would approximate 1.62% of loans. After an independent review of
the merger date loan portfolio, the gross loan mark of $12.6 million was
similar to the amount disclosed upon announcement of the merger.
Net Interest Income, Non-Interest Income and Non-Interest Expense
Net interest income decreased $1.0 million or 0.6% for 2012 compared to 2011
as a result of the low interest rate environment. While the average
outstanding loan balances increased during 2012, these increases were not
sufficient to offset the decline in average interest rates. Non-interest
income increased $4.9 million or 8.2% in 2012 compared to 2011. Trust fees
increased $0.9 million as assets under management continued to increase from
customer initiatives of trust and investment development activities that began
in the first half of 2012. Electronic banking fees increased 12.4% in 2012
due to increased transaction volumes. Net gains on sales of mortgage loans
increased $0.9 million due to increased volume and higher margins on sold
loans. The net loss on other real estate owned improved $1.0 million and net
security gains were $2.5 million in 2012. Service charges on deposits
decreased $1.5 million primarily from decreases in customer usage of overdraft
lines.
Non-interest expense increased 7.0% for the year compared to 2011 partially
due to restructuring and merger-related expenses of $3.9 million. Merger
expenses in 2012 related to the Fidelity merger were $3.2 million, while
restructuring costs associated with the closure of six branch offices were
$0.7 million. Total non-interest expense would have increased 4.2% for the
year without these charges. Salaries and wages increased $2.2 million in 2012
due to routine annual adjustments to compensation, increases in incentive
compensation expense, and an increase in full-time equivalent employees
("FTE") of 139 primarily due to the acquisition of Fidelity. Employee
benefits expense increased $4.1 million year-to-date primarily from increased
pension and employee health insurance costs. Partially offsetting these
increases were reduced marketing expense of $0.9 million and reduced FDIC
insurance of $0.9 million.
Fourth Quarter of 2012 compared to Fourth Quarter of 2011
For the fourth quarter of 2012, net income was $12.7 million compared to $10.6
million for the fourth quarter of 2011, representing an increase of 18.9%,
while diluted earnings per share were $0.46 as compared to $0.40 per share for
the fourth quarter of 2011. Net income for the fourth quarter of 2012,
excluding restructuring and merger-related expenses, was $14.2 million
compared to $10.6 million for 2011, representing an increase of 34.0%, while
diluted earnings per share excluding restructuring and merger-related expenses
were $0.52, compared to $0.40 per share for 2011.
Net income increased for the quarter primarily due to a $6.4 million decrease
in the provision for credit losses as a result of improved credit quality, and
a $1.3 million increase in net interest income from increased average assets
due to organic loan growth in 2012 and the acquisition of Fidelity.
Non-interest income increased $1.8 million due to a 10.9% increase in trust
fees from growth in assets under management, higher electronic banking fees,
increased gains on sale of mortgage loans, and near break-even charges on
disposition of other real estate owned in the 2012 quarter. Increases in
non-interest expense were due to the restructuring and merger-related
expenses, increased FTEs and normal increases at WesBanco for compensation
increases, while increased employee benefits were due to higher pension and
employee health insurance costs.
WesBanco is a multi-state bank holding company with total assets of
approximately $6.1 billion, operating through 118 branch locations and 107
ATMs in West Virginia, Ohio, and Pennsylvania. WesBanco's banking subsidiary
is WesBanco Bank, Inc., headquartered in Wheeling, West Virginia. WesBanco
also operates an insurance brokerage company, WesBanco Insurance Services,
Inc., and a full service broker/dealer, WesBanco Securities, Inc.
Forward-looking Statements:
Forward-looking statements in this report relating to WesBanco's plans,
strategies, objectives, expectations, intentions and adequacy of resources,
are made pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. The information contained in this report
should be read in conjunction with WesBanco's Form 10-K for the year ended
December 31, 2011 and documents subsequently filed by WesBanco with the
Securities and Exchange Commission ("SEC"), including WesBanco's Form 10-Q for
the quarters ended March 31, 2012, June 30, 2012 and September 30, 2012
respectively, which are available at the SEC's website, www.sec.gov or at
WesBanco's website, www.wesbanco.com. Investors are cautioned that
forward-looking statements, which are not historical fact, involve risks and
uncertainties, including those detailed in WesBanco's most recent Annual
Report on Form 10-K filed with the SEC under "Risk Factors" in Part I, Item
1A. Such statements are subject to important factors that could cause actual
results to differ materially from those contemplated by such statements,
including, without limitation, that the businesses of WesBanco and Fidelity
may not be integrated successfully or such integration may take longer to
accomplish than expected; the expected cost savings and any revenue synergies
from the merger of WesBanco and Fidelity may not be fully realized within the
expected timeframes; disruption from the merger of WesBanco and Fidelity may
make it more difficult to maintain relationships with clients, associates, or
suppliers; the effects of changing regional and national economic conditions;
changes in interest rates, spreads on earning assets and interest-bearing
liabilities, and associated interest rate sensitivity; sources of liquidity
available to WesBanco and its related subsidiary operations; potential future
credit losses and the credit risk of commercial, real estate, and consumer
loan customers and their borrowing activities; actions of the Federal Reserve
Board, the Federal Deposit Insurance Corporation, the SEC, the Financial
Institution Regulatory Authority, the Municipal Securities Rulemaking Board,
the Securities Investors Protection Corporation, and other regulatory bodies;
potential legislative and federal and state regulatory actions and reform,
including, without limitation, the impact of the implementation of the
Dodd-Frank Act; adverse decisions of federal and state courts; fraud, scams
and schemes of third parties; internet hacking; competitive conditions in the
financial services industry; rapidly changing technology affecting financial
services; marketability of debt instruments and corresponding impact on fair
value adjustments; and/or other external developments materially impacting
WesBanco's operational and financial performance. WesBanco does not assume
any duty to update forward-looking statements.
WESBANCO, INC.
Consolidated
Selected Page 4
Financial
Highlights
(unaudited,
dollars in
thousands,
except shares
and per share
amounts)
For the Three Months Ended For the Year Ended
STATEMENT OF December 31, December 31,
INCOME
Interest and 2012 2011 % Change 2012 2011 % Change
dividend income
Loans, $ $ (1.07%) $ $ (5.21%)
including fees 42,311 42,767 166,656 175,818
Interest and
dividends on
securities:
Taxable 7,677 8,862 (13.37%) 32,461 36,034 (9.92%)
Tax-exempt 3,129 3,059 2.29% 12,399 12,109 2.39%
Total
interest and 10,806 11,921 (9.35%) 44,860 48,143 (6.82%)
dividends on
securities
Other interest 55 52 5.77% 170 206 (17.48%)
income
Total
interest and 53,172 54,740 (2.86%) 211,686 224,167 (5.57%)
dividend income
Interest
expense
Interest
bearing demand 395 487 (18.89%) 1,526 2,160 (29.35%)
deposits
Money market 397 1,108 (64.17%) 2,183 4,802 (54.54%)
deposits
Savings 168 337 (50.15%) 864 1,505 (42.59%)
deposits
Certificates 6,321 7,347 (13.96%) 26,371 31,054 (15.08%)
of deposit
Total
interest 7,281 9,279 (21.53%) 30,944 39,521 (21.70%)
expense on
deposits
Federal Home
Loan Bank 789 1,456 (45.81%) 4,473 7,199 (37.87%)
borrowings
Other
short-term 976 1,232 (20.78%) 4,480 4,823 (7.11%)
borrowings
Junior
subordinated
debt owed to 840 839 0.12% 3,438 3,259 5.49%
unconsolidated
subsidiary
trusts
Total
interest 9,886 12,806 (22.80%) 43,335 54,802 (20.92%)
expense
Net interest 43,286 41,934 3.22% 168,351 169,365 (0.60%)
income
Provision for 3,272 9,631 (66.03%) 19,874 35,311 (43.72%)
credit losses
Net interest
income after 40,014 32,303 23.87% 148,477 134,054 10.76%
provision for
credit losses
Non-interest
income
Trust fees 4,655 4,198 10.89% 18,044 17,173 5.07%
Service
charges on 4,565 4,638 (1.57%) 17,138 18,629 (8.00%)
deposits
Electronic 2,807 2,603 7.84% 11,336 10,088 12.37%
banking fees
Net securities
brokerage 1,284 1,048 22.52% 4,604 4,413 4.33%
revenue
Bank-owned 870 864 0.69% 3,516 3,566 (1.40%)
life insurance
Net gains on
sales of 1,015 679 49.48% 2,876 1,977 45.47%
mortgage loans
Net securities 752 865 (13.06%) 2,463 963 155.76%
gains
Net loss on
other real
estate owned (7) (312) 97.76% (305) (1,290) 76.36%
and other
assets
Other income 1,656 1,185 39.75% 5,103 4,369 16.80%
Total
non-interest 17,597 15,768 11.60% 64,775 59,888 8.16%
income
Non-interest
expense
Salaries and 15,885 14,633 8.56% 58,913 56,673 3.95%
wages
Employee 5,924 4,456 32.94% 21,462 17,321 23.91%
benefits
Net occupancy 2,771 2,805 (1.21%) 10,905 11,255 (3.11%)
Equipment 2,604 2,193 18.74% 9,221 8,745 5.44%
Marketing 953 1,281 (25.60%) 4,235 5,142 (17.64%)
FDIC 937 1,008 (7.04%) 3,899 4,768 (18.23%)
insurance
Amortization
of intangible 570 588 (3.06%) 2,150 2,410 (10.79%)
assets
Restructuring
and 2,370 - 100.00% 3,888 - 100.00%
merger-related
expense
Other
operating 9,567 8,530 12.16% 35,447 33,981 4.31%
expenses
Total
non-interest 41,581 35,494 17.15% 150,120 140,295 7.00%
expense
Income before
provision for 16,030 12,577 27.45% 63,132 53,647 17.68%
income taxes
Provision for 3,380 1,940 74.23% 13,588 9,838 38.12%
income taxes
Net Income $ $ 18.92% $ $ 13.09%
12,650 10,637 49,544 43,809
Taxable $ $ $ $
equivalent net 44,971 43,581 3.19% 175,027 175,885 (0.49%)
interest income
Per common
share data
Net income per $ $ $ $
common share - 0.40 15.00% 1.84 1.65 11.52%
basic 0.46
Net income per $ $ $ $
common share - 0.40 15.00% 1.84 1.65 11.52%
diluted 0.46
Dividends $ $ $ $
declared 0.16 12.50% 0.70 0.62 12.90%
0.18
Book value $ $ 2.73%
(period end) 24.45 23.80
Tangible book $ $
value (period 13.34 13.17 1.29%
end) (1)
Average common
shares 27,523,958 26,629,360 3.36% 26,867,227 26,614,697 0.95%
outstanding -
basic
Average common
shares 27,549,655 26,629,688 3.45% 26,888,847 26,615,281 1.03%
outstanding -
diluted
Period end
common shares 29,214,660 26,629,360 9.71% 29,214,660 26,629,360 9.71%
outstanding
(1) See non-GAAP financial measures
for additional information relating to
the calculation of this item.
WESBANCO, INC.
Consolidated Page
Selected Financial 5
Highlights
(unaudited, dollars
in thousands)
Selected
ratios
For the Year Ended
December 31,
2012 2011 % Change
Return on average 0.88 % 0.81 % 8.64 %
assets
Return on average 7.54 7.01 7.56
equity
Return on average 13.68 13.32 2.70
tangible equity (1)
Yield on earning 4.40 4.80 (8.33)
assets (2)
Cost of interest 1.04 1.32 (21.21)
bearing liabilities
Net interest 3.36 3.48 (3.45)
spread (2)
Net interest 3.53 3.66 (3.55)
margin (2)
Efficiency (1) 60.98 59.50 2.49
(2)
Average loans to 74.15 76.32 (2.84)
average deposits
Annualized net loan
charge-offs/average 0.66 1.30 (49.23)
loans
Effective income 21.52 18.34 17.34
tax rate
For the Quarter Ended
Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31,
2012 2012 2012 2012 2011
Return on average 0.87 % 0.92 % 0.87 % 0.87 % 0.77 %
assets
Return on average 7.36 7.83 7.45 7.54 6.61
equity
Return on average 13.16 14.09 13.57 13.93 12.31
tangible equity (1)
Yield on earning 4.27 4.37 4.43 4.54 4.61
assets (2)
Cost of interest 0.93 1.03 1.07 1.14 1.22
bearing liabilities
Net interest 3.34 3.34 3.36 3.40 3.39
spread (2)
Net interest 3.50 3.51 3.53 3.57 3.56
margin (2)
Efficiency (1) 62.67 59.45 61.06 60.64 59.81
(2)
Average loans to 74.40 74.95 73.35 73.88 74.31
average deposits
Annualized net loan
charge-offs/average 0.47 0.54 0.84 0.82 1.22
loans
Effective income 21.09 21.16 22.33 21.56 15.42
tax rate
Trust assets, $ $ $ $ $
market value at 3,238,556 3,236,618 3,133,741 3,164,235 2,973,352
period end
(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 Page 6
Financial Highlights
(unaudited, dollars in
thousands, except % Change
shares)
Balance sheets December 31, September September
30, 30, 2012
to
Assets 2012 2011 % Change 2012 December
31, 2012
$ $ $
Cash and due from banks 91,716 129,396 (29.12) % (6.16) %
97,736
Due from banks - 33,889 10,929 210.08 18,675 81.47
interest bearing
Securities:
Available-for-sale, 1,021,244 1,016,340 0.48 993,754 2.77
at fair value
Held-to-maturity
(fair values of
$639,273; $621,472 602,509 592,925 1.62 559,156 7.75
and $598,854,
respectively)
Total 1,623,753 1,609,265 0.90 1,552,910 4.56
securities
Loans held for sale 21,903 6,084 260.01 14,225 53.98
Portfolio loans:
Commercial real 1,858,345 1,685,565 10.25 1,717,241 8.22
estate
Commercial and 478,025 426,315 12.13 447,767 6.76
industrial
Residential real 793,702 621,383 27.73 684,016 16.04
estate
Home equity 277,226 251,785 10.10 255,787 8.38
Consumer 280,464 254,320 10.28 248,155 13.02
Total portfolio loans, 3,687,762 3,239,368 13.84 3,352,966 9.99
net of unearned income
Allowance for loan (52,699) (54,810) 3.85 (53,476) 1.45
losses
Net portfolio 3,635,063 3,184,558 14.15 3,299,490 10.17
loans
Premises and equipment, 88,866 82,204 8.10 80,176 10.84
net
Accrued interest 19,354 19,268 0.45 19,171 0.95
receivable
Goodwill and other 324,465 283,150 14.59 281,570 15.23
intangible assets, net
Bank-owned life 119,671 110,074 8.72 112,720 6.17
insurance
Other assets 120,037 101,102 18.73 100,286 19.69
$ $ $
Total Assets 6,078,717 5,536,030 9.80 % 9.00 %
5,576,959
Liabilities
Deposits:
Non-interest $ $ $
bearing demand 874,923 705,415 24.03 % 15.07 %
760,308
Interest bearing 831,368 698,113 19.09 784,748 5.94
demand
Money market 847,805 789,037 7.45 778,121 8.96
Savings deposits 740,568 596,549 24.14 649,959 13.94
Certificates of 1,649,620 1,604,752 2.80 1,515,076 8.88
deposit
Total deposits 4,944,284 4,393,866 12.53 4,488,212 10.16
Federal Home Loan Bank 111,187 168,186 (33.89) 91,617 21.36
borrowings
Other short-term 142,971 196,887 (27.38) 186,886 (23.50)
borrowings
Junior subordinated debt
owed to unconsolidated 113,832 106,066 7.32 106,091 7.30
subsidiary trusts
Total 367,990 471,139 (21.89) 384,594 (4.32)
borrowings
Accrued interest payable 3,856 4,975 (22.49) 4,628 (16.68)
Other liabilities 48,403 32,260 50.04 40,203 20.40
Total Liabilities 5,364,533 4,902,240 9.43 4,917,637 9.09
Shareholders' Equity
Preferred stock, no par
value; 1,000,000 shares
authorized;
none outstanding - - - - -
Common stock, $2.0833
par value; 50,000,000
shares authorized;
29,214,660 shares;
26,633,848 shares
and 26,667,739
shares issued,
respectively;
29,214,660 shares;
26,629,360 shares
and 26,665,519 60,863 55,487 9.69 55,558 9.55
shares outstanding,
respectively
Capital surplus 241,672 191,679 26.08 192,159 25.77
Retained earnings 419,246 388,818 7.83 411,853 1.80
Treasury stock ( 0;
4,488 and 2,220 shares - - (96) (100.00) (44) (100.00)
at cost, respectively)
Accumulated other
comprehensive income (6,365) (902) (605.65) 1,019 (724.63)
(loss)
Deferred benefits for (1,232) (1,196) (3.01) (1,223) (0.74)
directors
Total Shareholders' 714,184 633,790 12.68 659,322 8.32
Equity
Total Liabilities and $ $ 9.80 % $ 9.00 %
Shareholders' Equity 6,078,717 5,536,030 5,576,959
WESBANCO, INC.
Consolidated
Selected Page 7
Financial
Highlights
(unaudited,
dollars in
thousands)
Average
balance sheet
and
net interest
margin Three Months Ended December 31, For the Year Ended December 31,
analysis
2012 2011 2012 2011
Average Average Average Average Average Average Average Average
Assets Balance Rate Balance Rate Balance Rate Balance Rate
Due from banks $ $ $ $
- interest 22,277 0.36% 53,005 0.25% 26,865 0.25% 48,723 0.21%
bearing
Loans, net of
unearned income 3,463,911 4.86% 3,237,808 5.24% 3,323,078 5.02% 3,256,887 5.40%
(1)
Securities:
(2)
Taxable 1,275,530 2.41% 1,246,971 2.84% 1,270,446 2.56% 1,179,458 3.06%
Tax-exempt 340,788 5.65% 305,129 6.17% 323,885 5.89% 299,357 6.22%
(3)
Total 1,616,318 3.09% 1,552,100 3.50% 1,594,331 3.23% 1,478,815 3.70%
securities
Other earning 17,158 0.82% 22,899 0.33% 19,621 0.52% 25,030 0.42%
assets
Total
earning assets 5,119,664 4.27% 4,865,812 4.61% 4,963,895 4.40% 4,809,455 4.80%
(3)
Other assets 641,331 647,999 642,491 630,788
Total Assets $ $ $ $
5,760,995 5,513,811 5,606,386 5,440,243
Liabilities and
Shareholders'
Equity
Interest $ $ $ $
bearing demand 814,894 0.19% 577,644 0.33% 755,908 0.20% 628,037 0.34%
deposits
Money market 800,059 0.20% 900,494 0.49% 781,400 0.28% 792,565 0.61%
accounts
Savings 679,646 0.10% 588,799 0.23% 645,310 0.13% 570,093 0.26%
deposits
Certificates 1,558,594 1.61% 1,609,711 1.81% 1,547,379 1.70% 1,636,753 1.90%
of deposit
Total
interest 3,853,193 0.75% 3,676,648 1.00% 3,729,997 0.83% 3,627,448 1.09%
bearing
deposits
Federal Home
Loan Bank 92,264 3.40% 172,609 3.35% 130,048 3.44% 210,506 3.42%
borrowings
Other 178,809 2.17% 204,311 2.39% 191,534 2.34% 194,768 2.48%
borrowings
Junior
subordinated 108,673 3.08% 106,062 3.14% 106,727 3.22% 106,050 3.07%
debt
Total
interest 4,232,939 0.93% 4,159,630 1.22% 4,158,306 1.04% 4,138,772 1.32%
bearing
liabilities
Non-interest
bearing demand 802,385 680,637 751,345 639,837
deposits
Other 41,977 34,888 40,051 36,573
liabilities
Shareholders' 683,694 638,656 656,684 625,061
equity
Total
Liabilities and $ $ $ $
Shareholders' 5,760,995 5,513,811 5,606,386 5,440,243
Equity
Taxable
equivalent net 3.34% 3.39% 3.36% 3.48%
interest spread
Taxable
equivalent net 3.50% 3.56% 3.53% 3.66%
interest
margin
(1) Gross of allowance for loan losses and net of
unearned income. Includes non-accrual and loans held
for sale.
Loan fees included in interest income on loans are $1.0 million and
$0.9 million for the three months ended December 31, 2012 and 2011,
and $4.0 million and $4.3 million for the
year ended December 31, 2012 and 2011,
respectively.
(2) Average yields on available-for sale
securities are calculated based on amortized
cost.
(3) Taxable equivalent basis is calculated on
tax-exempt securities using a rate of 35% for each
period presented.
WESBANCO, INC.
Consolidated
Selected Financial Page 8
Highlights
(unaudited, dollars
in thousands,
except shares and
per share amounts)
Quarter Ended
Statement of Income Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31,
Interest income 2012 2012 2012 2012 2011
Loans, $ $ $ $ $
including fees 42,311
41,423 40,957 41,964 42,767
Interest and
dividends on
securities:
Taxable 7,677 7,722 8,471 8,590 8,862
3,129 3,113 3,079 3,079 3,059
Tax-exempt
Total interest and 10,806 10,835 11,550 11,669 11,921
dividends on
securities
Other interest 55 30 38 47 52
income
Total
interest and 53,172 52,288 52,545 53,680 54,740
dividend income
Interest expense
Interest
bearing demand 395 397 393 405 487
deposits
Money market 397 487 493 742 1,108
deposits
Savings 168 202 200 295 337
deposits
Certificates 6,321 6,450 6,621 6,979 7,347
of deposit
Total interest 7,281 7,536 7,707 8,421 9,279
expense on deposits
Federal Home
Loan Bank 789 1,020 1,288 1,377 1,456
borrowings
Other
short-term 976 1,169 1,156 1,178 1,232
borrowings
Junior
subordinated debt
owed to 840 869 854 874 839
unconsolidated
subsidiary trusts
Total interest 9,886 10,594 11,005 11,850 12,806
expense
Net interest 43,286 41,694 41,540 41,830 41,934
income
Provision for 3,272 4,497 5,903 6,202 9,631
credit losses
Net interest income
after provision for 40,014 37,197 35,637 35,628 32,303
credit losses
Non-interest income
Trust fees 4,655 4,379 4,258 4,753 4,198
Service 4,565 4,362 4,218 3,993 4,638
charges on deposits
Electronic 2,807 2,846 2,920 2,763 2,603
banking fees
Net securities 1,284 1,131 1,114 1,075 1,048
brokerage revenue
Bank-owned 870 891 874 880 864
life insurance
Net gains on
sales of mortgage 1,015 993 599 268 679
loans
Net securities 752 316 1,294 100 865
gains
Net loss on
other real estate (7) (48) (282) 32 (312)
owned and other
assets
Other income 1,656 1,092 899 1,458 1,185
Total 17,597 15,962 15,894 15,322 15,768
non-interest income
Non-interest
expense
Salaries and 15,885 14,758 13,955 14,315 14,633
wages
Employee 5,924 5,000 4,920 5,618 4,456
benefits
Net occupancy 2,771 2,654 2,703 2,776 2,805
Equipment 2,604 2,300 2,144 2,174 2,193
Marketing 953 795 1,716 771 1,281
FDIC 937 951 965 1,045 1,008
insurance
Amortization
of intangible 570 519 524 537 588
assets
Restructuring
and merger-related 2,370 1,518 - - -
expense
Other
operating 9,567 8,295 9,157 8,429 8,530
expenses
Total
non-interest 41,581 36,790 36,084 35,665 35,494
expense
Income before
provision for 16,030 16,369 15,447 15,285 12,577
income taxes
Provision for 3,380 3,463 3,449 3,295 1,940
income taxes
$ $ $ $ $
Net Income
12,650 12,906 11,998 11,990 10,637
Taxable equivalent $ $ $ $ $
net interest income 43,197 43,581
44,971 43,370 43,488
Per common share
data
Net income per $ $ $ $ $
common share -
basic 0.48 0.45 0.45 0.40
0.46
Net income per $ $ $ $ $
common share -
diluted 0.48 0.45 0.45 0.40
0.46
$ $ $ $ $
Dividends declared
0.18 0.17 0.17 0.16
0.18
Book value (period $ $ $ $ $
end)
24.45 24.73 24.34 24.11 23.80
Tangible book value $ $ $ $ $
(period end) (1)
13.34 14.17 13.76 13.50 13.17
Average common
shares outstanding 27,523,958 26,664,882 26,647,050 26,628,025 26,629,360
- basic
Average common
shares outstanding 27,549,655 26,672,849 26,650,325 26,631,187 26,629,688
- diluted
Period end common 29,214,660 26,665,519 26,664,644 26,627,689 26,629,360
shares outstanding
Full time
equivalent 1,507 1,366 1,404 1,371 1,368
employees
(1) See non-GAAP financial measures for
additional information relating to the
calculation of this item.
WESBANCO, INC.
Consolidated Selected Page
Financial Highlights 9
(unaudited, dollars in
thousands)
Quarter Ended
Dec. 31, Sept. June 30, Mar. Dec.
30, 31, 31,
Asset quality data 2012 2012 2012 2012 2011
Non-performing assets:
Troubled debt $ $ $ $ $
restructurings - 24,281 24,858 28,165
accruing 27,900 29,411
Non-accrual loans:
Troubled debt 15,001 9,449 11,159 16,935 17,287
restructurings
Other non-accrual 24,371 24,841 28,793 36,139 40,205
loans
Total 39,372 34,290 39,952 53,074 57,492
non-accrual loans
Total
non-performing 63,653 59,148 68,117 80,974 86,903
loans
Other real estate and 5,988 3,951 3,918 3,178 3,029
repossessed assets
Total $ $ $ $ $
non-performing 69,641 63,099 72,035
assets 84,152 89,932
Past due loans (1):
Loans past due 30-89 $ $ $ $ $
days 20,843 17,332 15,117
15,034 19,888
Loans past due 90 5,294 3,560 3,639 3,146 5,135
days or more
Total past due $ $ $ $ $
loans 26,137 20,892 18,756
18,180 25,023
Criticized and
classified loans (2):
Criticized loans $ $ $ $ $
86,777 102,792 122,854 129,312 141,195
Classified loans 85,960 94,613 100,436 107,757 116,973
Total criticized $ $ $ $ $
and classified 172,737 197,405 223,290 237,069 258,168
loans
Loans past due 30-89 days 0.57 % 0.52 % 0.46 % 0.47 % 0.61 %
/ total portfolio loans
Loans past due 90 days or
more / total portfolio 0.14 0.11 0.11 0.10 0.16
loans
Non-performing loans / 1.73 1.76 2.08 2.51 2.68
total portfolio loans
Non-performing
assets/total portfolio
loans, other
real estate and 1.89 1.88 2.20 2.61 2.77
repossessed assets
Criticized and classified
loans / total portfolio 4.68 5.89 6.82 7.35 7.97
loans
Allowance for loan
losses
Allowance for loan $ $ $ $ $
losses 52,699 53,476 53,610
54,395 54,810
Provision for credit 3,272 4,497 5,903 6,202 9,631
losses
Net loan and deposit
account overdraft 4,124 4,566 6,805 6,617 9,921
charge-offs
Annualized net loan
charge-offs /average 0.47 % 0.54 % 0.84 % 0.82 % 1.22 %
loans
Allowance for loan
losses/total portfolio 1.43 % 1.59 % 1.64 % 1.69 % 1.69 %
loans
Allowance for loan
losses/non-performing 0.83 x 0.90 x 0.79 x 0.67 x 0.63 x
loans
Allowance for loan
losses/non-performing
loans and
loans past due 0.59 x 0.67 x 0.62 x 0.55 x 0.49 x
Quarter Ended
Dec. 31, Sept. June 30, Mar. Dec.
30, 31, 31,
2012 2012 2012 2012 2011
Capital ratios
Tier I leverage capital 8.67 % 9.11 % 8.94 % 8.81 % 8.71 %
Tier I risk-based 12.82 13.20 13.11 12.89 12.68
capital
Total risk-based capital 14.07 14.45 14.36 14.14 13.93
Average shareholders' 11.87 11.80 11.66 11.52 11.58
equity to average assets
Tangible equity to 6.77 7.13 7.00 6.76 6.68
tangible assets (3)
(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 Page 10
MEASURES
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
Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31, Dec. 31,
(unaudited,
dollars in 2012 2012 2012 2012 2011 2012 2011
thousands)
Return on average
tangible equity:
Net income $ $ $ $ $ $ $
(annualized) 50,325 51,345 48,255 48,223 42,201 49,544 43,809
Plus:
amortization
of intangibles 1,473 1,342 1,370 1,405 1,516 1,398 1,566
(annualized)
(1)
Net income
before
amortization 51,798 52,687 49,625 49,628 43,717 50,942 45,375
of intangibles
(annualized)
Average total
shareholders' 683,694 655,666 648,014 639,180 638,656 656,684 625,061
equity
Less: average
goodwill and (290,054) (281,820) (282,339) (282,849) (283,406) (284,270) (284,304)
other
intangibles
Average
tangible 393,640 373,846 365,676 356,331 355,250 372,414 340,757
equity
Return on
average tangible 13.16% 14.09% 13.57% 13.93% 12.31% 13.68% 13.32%
equity
Period End
Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31,
2012 2012 2012 2012 2011
Tangible book
value:
Total $ $ $ $ $
shareholders' 714,184 659,322 649,112 642,001 633,790
equity
Less:
goodwill and
other (324,465) (281,570) (282,088) (282,612) (283,150)
intangible
assets
Tangible 389,719 377,752 367,024 359,389 350,640
equity
Common shares 29,214,660 26,665,519 26,664,644 26,627,689 26,629,360
outstanding
Tangible book $ $ $ $ $
value 13.34 14.17 13.76 13.50 13.17
Tangible equity
to tangible
assets:
Total $ $ $ $ $
shareholders' 714,184 659,322 649,112 642,001 633,790
equity
Less:
goodwill and
other (324,465) (281,570) (282,088) (282,612) (283,150)
intangible
assets
Tangible 389,719 377,752 367,024 359,389 350,640
equity
Total 6,078,717 5,576,959 5,525,405 5,600,643 5,536,030
assets
Less:
goodwill and
other (324,465) (281,570) (282,088) (282,612) (283,150)
intangible
assets
Tangible 5,754,252 5,295,389 5,243,317 5,318,031 5,252,880
assets
Tangible equity
to tangible 6.77% 7.13% 7.00% 6.76% 6.68%
assets
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.
Diluted earnings per share excluding
restructuring and merger-related
expense:
Calculated by subtracting tax effected restructuring and
merger-related expense from net income and dividing by diluted
average shares outstanding.
(1) Tax effected
at 35%.
SOURCE WesBanco, Inc.
Website: http://www.wesbanco.com
Contact: Paul M. Limbert, President and Chief Executive Officer, or Robert H.
Young, Executive Vice President and Chief Financial Officer, +1-304-234-9000
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