WesBanco Inc.
10/22/2013 | Press release | Archived content
WesBanco Announces 20% Increase in Third Quarter Net Income
WHEELING, W.Va., Oct. 22, 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 three and nine month periods ended September 30, 2013.
Diluted earnings per share for the nine month period ended September 30, 2013 were up 20.3% to $1.66 compared to $1.38 for the same period last year, while net income for the 2013 nine month period was $48.6 million compared to $36.9 million for 2012, representing an increase of 31.7%. For the third quarter of 2013, diluted earnings per share totaled $0.53 compared to $0.48 for the third quarter of last year, representing an increase of 10.4%, while net income for the 2013 third quarter totaled $15.5 million compared to $12.9 million for 2012, representing an increase of 20.4%. The increased net income improved the return on average assets to 1.07% from 0.89% in the first nine months of last year, and the return on average tangible equity (non-GAAP measure) increased to 16.35% from 13.87%. The 2013 results include the effect of the late 2012 acquisition of Fidelity Bancorp, Inc., Pittsburgh, PA (" Fidelity").
Mr. Limbert commented, "The third quarter results reflect a continued ability to pass through to our shareholders increased dividends due to the improvement in profitability through growth from the acquisition and from our ability to increase net revenues. Loan growth over the last two quarters combined with strategies to reduce funding costs have continued to enhance net interest income. Trust fees, securities brokerage revenue and other components of non-interest income continued to improve. The provision for credit losses remains significantly lower than the provisions recorded in recent years. Our shareholders have again benefited from these positive results as the dividend was raised to $0.20 per share in August, the second increase in 2013."
Financial Condition
Total assets at September 30, 2013 increased 10.1% or $561.4 million from September 30, 2012, due to the acquisition of Fidelity and organic loan growth. Portfolio loans increased $483.6 million or 14.4% from September 30, 2012, with $319.2 million from western Pennsylvania, which includes the Fidelity-acquired loans. The remaining $164.4 million increase in net loan outstandings, a 4.3% organic growth rate year-over-year, came from other WesBanco markets as loan originations outpaced loan repayments. Total loans grew $148.8 million or 4.0% from December 31, 2012, as a result of a 40.1% growth in loan originations in the first nine months of 2013 compared to originations in the same period in 2012. In addition, total loan commitments increased 10.8% year-to-date in 2013. Deposits increased $572.2 million or 12.8% from September 30, 2012, with $403.6 million from the western Pennsylvania region. Total assets at September 30, 2013 increased 1.0% compared to 2012 year-end, as loan growth was funded with maturing securities and increases in deposits.
WesBanco has continued to maintain strong regulatory capital ratios. At September 30, 2013, tier I leverage was 9.27%, tier I risk-based capital was 13.08%, and total risk-based capital was 14.23%, which were similar to or slightly improved from 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 7.13% at September 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 and increased assets. Strong earnings and improved total capital have enabled WesBanco to increase the quarterly dividend rate, currently at $0.20 per share, six times over the last two and a half years, cumulatively representing a 43% increase.
Credit Quality
Credit quality has continued to improve over the past year. Total non-performing loans at September 30, 2013 were $53.6 million or 1.40% of total loans, which represents a 9.3% decrease from $59.1 million or 1.76% at September 30, 2012. Criticized and classified loans decreased 28.4% over the last twelve months to $141.3 million, or 3.68% of total loans at September 30, 2013 from $197.4 million and 5.89% last year. The decreases in non-performing loans and criticized and classified loans included the effect of a third quarter 2013 sale of classified loans with a carrying value of $9.4 million, of which $7.3 million were non-performing.
Net charge-offs for the third quarter of 2013 were $5.8 million, or 0.60% of average portfolio loans, and $11.3 million or 0.30% for the year-to-date period, compared to net charge-offs of $4.6 million or 0.54% for the third quarter of 2012, and $18.0 million or 0.55% for the first nine months of 2012. The third quarter of 2013 includes charges-offs related to the loan sale of $3.5 million which were mostly covered by existing reserves.
As a result of an improvement in all measures of credit quality, the provision for credit losses was $2.8 million for the third quarter of 2013, compared to $4.5 million for the same quarter in 2012, and $5.9 million year-to-date compared to $16.6 million last year. The third quarter provision increased $1.8 million from the second quarter of 2013 due primarily to loan growth, increases in one smaller loan specific reserve and the impact on applicable historical loss rates of charge-offs related to the loan sales in the current quarter. The allowance for loan losses represented 1.23% of total portfolio loans at the end of the third quarter 2013 compared to 1.59% last year.
Net Interest Income
Net interest income increased $4.4 million or 10.6% in the third quarter of 2013 compared to the same quarter for 2012, due to a 9.8% 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 $13.2 million or 10.5% from last year. In addition, the net interest margin increased slightly to 3.52% in the third quarter of 2013, from 3.51% last year. Year-to-date the margin was 3.58% compared to 3.53% in 2012. The year-to-date margin improvement was due to lower funding costs resulting from a 37.4% average reduction in higher rate FHLB advances and other borrowings, primarily through maturities, a 12.7% increase in total average deposits, with 85.4% of the increase from lower cost demand, money market or savings accounts and the repricing at lower rates of maturing CDs. Accretion of the purchase accounting adjustments for loans, CDs and borrowings acquired with the Fidelity merger also improved the net interest margin by 10 basis points year-to-date.
Non-Interest Income and Non-Interest Expense
Non-interest income for the quarter ended September 30, 2013 increased $1.2 million or 7.2% compared to the third quarter of 2012, and year-to-date the increase was $5.2 million or 10.9%. Trust fees increased 10.9% for the quarter and 9.7% year-to-date, as assets under management continued to increase from customer development initiatives and overall market improvements. Total trust assets were up 8.2% year-over-year. Net securities brokerage revenues increased 33.2% and 39.9%, respectively, for the quarter and year-to-date periods also due to the new business initiatives. Service charges on deposits and electronic banking fees also continued to grow in the third quarter. Net gains on sales of mortgage loans increased 16.0% year-to-date but decreased in the third quarter due to mortgages being retained during the quarter. Securities gains were lower due to reduced portfolio restructuring compared to prior periods as interest rates increased.
Non-interest expense increased $3.2 million or 8.8% for the 2013 third quarter compared to the third quarter of 2012, and $11.7 million or 10.8% for the first nine months of 2013, partially due to recurring expenses related to operating 13 additional branches acquired in the Fidelity acquisition. Most of the back-office and other administrative savings targeted to be obtained from the merger were accomplished by the end of the second quarter. Salaries and wages increased 11.7% for the third quarter and year-to-date periods compared to the same periods in 2012, 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 96, primarily from the Fidelity acquisition. Employee benefit expenses increased primarily from increased pension expense and payroll taxes. Marketing costs were higher compared to 2012 due to additional marketing initiatives during 2013. Lower merger-related costs benefited both the quarter and the year-to-date period of 2013.
Financial Results Conference Call
WesBanco, Inc. will host a conference call to discuss the Company's financial results for the third quarter of 2013 on Wednesday, October 23, 2013, at 11:00 a.m. E.D.T. Callers wishing to participate should access the call by dialing (800) 870-4263 or +1 (412) 317-0790 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=96267. 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 quarters ended March 31, 2013 and June 30, 2013, 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.
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WESBANCO, INC. |
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Consolidated Selected Financial Highlights |
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Page 4 |
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(unaudited, dollars in thousands, except shares and per share amounts) |
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For the Three Months Ended |
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For the Nine Months Ended |
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STATEMENT OF INCOME |
September 30, |
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September 30, |
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Interest and dividend income |
2013 |
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2012 |
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% Change |
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2013 |
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2012 |
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% Change |
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Loans, including fees |
$ 43,678 |
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$ 41,423 |
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5.44% |
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$ 131,706 |
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$ 124,345 |
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5.92% |
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Interest and dividends on securities: |
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Taxable |
7,226 |
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7,722 |
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(6.42%) |
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22,015 |
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24,784 |
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(11.17%) |
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Tax-exempt |
3,355 |
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3,113 |
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7.77% |
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9,748 |
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9,270 |
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5.16% |
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Total interest and dividends on securities |
10,581 |
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10,835 |
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(2.34%) |
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31,763 |
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34,054 |
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(6.73%) |
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Other interest income |
58 |
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30 |
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93.33% |
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165 |
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115 |
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43.48% |
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Total interest and dividend income |
54,317 |
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52,288 |
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3.88% |
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163,634 |
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158,514 |
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3.23% |
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Interest expense |
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Interest bearing demand deposits |
369 |
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397 |
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(7.05%) |
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1,035 |
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1,132 |
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(8.57%) |
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Money market deposits |
345 |
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487 |
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(29.16%) |
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1,023 |
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1,786 |
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(42.72%) |
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Savings deposits |
128 |
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202 |
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(36.63%) |
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395 |
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697 |
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(43.33%) |
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Certificates of deposit |
5,597 |
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6,450 |
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(13.22%) |
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17,626 |
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20,050 |
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(12.09%) |
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Total interest expense on deposits |
6,439 |
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7,536 |
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(14.56%) |
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20,079 |
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23,665 |
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(15.15%) |
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Federal Home Loan Bank borrowings |
291 |
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1,020 |
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(71.47%) |
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900 |
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3,684 |
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(75.57%) |
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Other short-term borrowings |
651 |
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1,169 |
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(44.31%) |
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1,900 |
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3,503 |
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(45.76%) |
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Junior subordinated debt owed to unconsolidated subsidiary trusts |
805 |
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869 |
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(7.36%) |
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2,506 |
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2,598 |
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(3.54%) |
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Total interest expense |
8,186 |
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10,594 |
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(22.73%) |
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25,385 |
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33,450 |
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(24.11%) |
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Net interest income |
46,131 |
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41,694 |
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10.64% |
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138,249 |
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125,064 |
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10.54% |
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Provision for credit losses |
2,819 |
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4,497 |
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(37.31%) |
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5,942 |
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16,602 |
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(64.21%) |
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Net interest income after provision for credit losses |
43,312 |
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37,197 |
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16.44% |
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132,307 |
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108,462 |
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21.98% |
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Non-interest income |
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Trust fees |
4,854 |
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4,379 |
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10.85% |
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14,694 |
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13,390 |
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9.74% |
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Service charges on deposits |
4,650 |
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4,362 |
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6.60% |
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13,309 |
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12,574 |
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5.85% |
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Electronic banking fees |
3,124 |
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2,846 |
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9.77% |
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9,186 |
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8,529 |
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7.70% |
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Net securities brokerage revenue |
1,506 |
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1,131 |
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33.16% |
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4,644 |
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3,319 |
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39.92% |
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Bank-owned life insurance |
911 |
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891 |
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2.24% |
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3,739 |
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2,646 |
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41.31% |
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Net gains on sales of mortgage loans |
745 |
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993 |
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(24.97%) |
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2,157 |
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1,860 |
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15.97% |
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Net securities (losses) / gains |
(15) |
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316 |
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(104.75%) |
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687 |
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1,711 |
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(59.85%) |
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Net gain / (loss) on other real estate owned and other assets |
8 |
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(48) |
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116.67% |
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63 |
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(298) |
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121.14% |
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Other income |
1,333 |
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1,092 |
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22.07% |
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3,857 |
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3,447 |
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11.89% |
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Total non-interest income |
17,116 |
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15,962 |
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7.23% |
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52,336 |
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47,178 |
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10.93% |
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Non-interest expense |
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Salaries and wages |
16,480 |
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14,758 |
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11.67% |
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48,079 |
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43,028 |
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11.74% |
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Employee benefits |
5,323 |
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5,000 |
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6.46% |
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17,481 |
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15,538 |
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12.50% |
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Net occupancy |
2,921 |
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2,654 |
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10.06% |
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8,943 |
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8,133 |
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9.96% |
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Equipment |
2,692 |
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2,300 |
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17.04% |
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7,901 |
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6,617 |
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19.40% |
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Marketing |
1,585 |
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795 |
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99.37% |
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4,015 |
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3,282 |
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22.33% |
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FDIC insurance |
916 |
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951 |
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(3.68%) |
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2,806 |
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2,962 |
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(5.27%) |
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Amortization of intangible assets |
556 |
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519 |
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7.13% |
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1,742 |
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1,580 |
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10.25% |
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Restructuring and merger-related expense |
36 |
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1,518 |
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(97.63%) |
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1,265 |
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1,518 |
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(16.67%) |
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Other operating expenses |
9,500 |
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8,295 |
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14.53% |
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28,024 |
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25,880 |
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8.28% |
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Total non-interest expense |
40,009 |
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36,790 |
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8.75% |
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120,256 |
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108,538 |
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10.80% |
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Income before provision for income taxes |
20,419 |
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16,369 |
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24.74% |
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64,387 |
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47,102 |
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36.70% |
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Provision for income taxes |
4,884 |
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3,463 |
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41.03% |
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15,815 |
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10,208 |
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54.93% |
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Net Income |
$ 15,535 |
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$ 12,906 |
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20.37% |
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$ 48,572 |
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$ 36,894 |
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31.65% |
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Taxable equivalent net interest income |
$ 47,938 |
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$ 43,370 |
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10.53% |
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$ 143,498 |
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$ 130,056 |
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10.34% |
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Per common share data |
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Net income per common share - basic |
$ 0.53 |
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$ 0.48 |
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10.42% |
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$ 1.66 |
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$ 1.38 |
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20.29% |
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Net income per common share - diluted |
$ 0.53 |
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$ 0.48 |
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10.42% |
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$ 1.66 |
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$ 1.38 |
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20.29% |
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Dividends declared |
$ 0.20 |
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$ 0.18 |
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11.11% |
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$ 0.58 |
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$ 0.52 |
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11.54% |
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Book value (period end) |
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$ 25.10 |
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$ 24.73 |
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1.50% |
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Tangible book value (period end) (1) |
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$ 14.13 |
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$ 14.17 |
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(0.28%) |
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Average common shares outstanding - basic |
29,325,128 |
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26,664,882 |
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9.98% |
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29,260,967 |
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26,646,719 |
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9.81% |
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Average common shares outstanding - diluted |
29,412,458 |
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26,672,849 |
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10.27% |
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29,328,305 |
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26,651,322 |
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10.04% |
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Period end common shares outstanding |
29,350,061 |
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26,665,519 |
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10.07% |
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29,350,061 |
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26,665,519 |
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10.07% |
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(1) See non-GAAP financial measures for additional information relating to the calculation of this item. |
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WESBANCO, INC. |
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Consolidated Selected Financial Highlights |
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Page 5 |
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(unaudited, dollars in thousands) |
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Selected ratios |
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For the Nine Months Ended |
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September 30, |
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2013 |
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2012 |
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% Change |
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Return on average assets |
1.07 |
% |
0.89 |
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20.22 |
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Return on average equity |
8.91 |
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7.61 |
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17.08 |
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Return on average tangible equity (1) |
16.35 |
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13.87 |
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17.88 |
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Yield on earning assets (2) |
4.21 |
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4.44 |
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(5.18) |
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Cost of interest bearing liabilities |
0.77 |
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1.08 |
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(28.70) |
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Net interest spread (2) |
3.44 |
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3.36 |
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2.38 |
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Net interest margin (2) |
3.58 |
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3.53 |
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1.42 |
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Efficiency (1) (2) |
60.76 |
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60.38 |
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0.63 |
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Average loans to average deposits |
75.11 |
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74.07 |
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1.40 |
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Annualized net loan charge-offs/average loans |
0.40 |
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0.73 |
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(45.21) |
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|
|||||
|
Effective income tax rate |
24.56 |
|
21.67 |
|
13.34 |
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
|
||||||||
|
|
|
|
|
|
|
Sept. 30, |
|
June 30, |
|
Mar. 31, |
|
Dec. 31, |
|
Sept. 30, |
|
|
|
|
|
|
|
|
2013 |
|
2013 |
|
2013 |
|
2012 |
|
2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
|
|
|
1.01 |
% |
1.12 |
% |
1.07 |
% |
0.87 |
% |
0.92 |
% |
|
|
Return on average equity |
|
|
|
|
8.40 |
|
9.33 |
|
9.00 |
|
7.36 |
|
7.83 |
|
|
|
Return on average tangible equity (1) |
|
|
|
15.34 |
|
17.04 |
|
16.72 |
|
13.16 |
|
14.09 |
|
||
|
Yield on earning assets (2) |
|
|
|
|
4.13 |
|
4.20 |
|
4.31 |
|
4.27 |
|
4.37 |
|
|
|
Cost of interest bearing liabilities |
|
|
|
0.73 |
|
0.77 |
|
0.81 |
|
0.93 |
|
1.03 |
|
||
|
Net interest spread (2) |
|
|
|
|
3.40 |
|
3.43 |
|
3.50 |
|
3.34 |
|
3.34 |
|
|
|
Net interest margin (2) |
|
|
|
|
3.52 |
|
3.56 |
|
3.64 |
|
3.50 |
|
3.51 |
|
|
|
Efficiency (1) (2) |
|
|
|
|
|
61.45 |
|
60.25 |
|
60.59 |
|
62.67 |
|
59.45 |
|
|
Average loans to average deposits |
|
|
|
76.16 |
|
75.27 |
|
73.86 |
|
74.40 |
|
74.95 |
|
||
|
Annualized net loan charge-offs/average loans |
0.60 |
|
0.26 |
|
0.34 |
|
0.47 |
|
0.54 |
|
|||||
|
Effective income tax rate |
|
|
|
|
23.92 |
|
26.63 |
|
22.88 |
|
21.09 |
|
21.16 |
|
|
|
Trust assets, market value at period end |
$ 3,501,873 |
|
$ 3,440,666 |
|
$ 3,451,124 |
|
$ 3,238,556 |
|
$ 3,236,618 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
(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 |
|
September 30, |
|
|
|
December 31, |
December 31, 2012 |
|
|||||
|
Assets |
|
|
2013 |
|
2012 |
|
% Change |
|
2012 |
to Sept. 30, 2013 |
|
||
|
Cash and due from banks |
|
$ 140,234 |
|
$ 97,736 |
|
43.48 |
% |
$ 91,716 |
52.90 |
% |
|||
|
Due from banks - interest bearing |
|
5,405 |
|
18,675 |
|
(71.06) |
|
33,889 |
(84.05) |
|
|||
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Available-for-sale, at fair value |
|
933,455 |
|
993,754 |
|
(6.07) |
|
1,021,244 |
(8.60) |
|
||
|
|
Held-to-maturity (fair values of $607,215; $598,854 and $639,273, respectively) |
|
602,588 |
|
559,156 |
|
7.77 |
|
602,509 |
0.01 |
|
||
|
|
|
Total securities |
|
1,536,043 |
|
1,552,910 |
|
(1.09) |
|
1,623,753 |
(5.40) |
|
|
|
Loans held for sale |
|
6,601 |
|
14,225 |
|
(53.60) |
|
21,903 |
(69.86) |
|
|||
|
Portfolio loans: |
|
|
|
|
|
|
|
|
|
|
|||
|
|
Commercial real estate |
|
1,867,782 |
|
1,717,241 |
|
8.77 |
|
1,858,345 |
0.51 |
|
||
|
|
Commercial and industrial |
|
544,202 |
|
447,767 |
|
21.54 |
|
478,025 |
13.84 |
|
||
|
|
Residential real estate |
|
879,703 |
|
684,016 |
|
28.61 |
|
793,702 |
10.84 |
|
||
|
|
Home equity |
|
283,488 |
|
255,787 |
|
10.83 |
|
277,226 |
2.26 |
|
||
|
|
Consumer |
|
261,363 |
|
248,155 |
|
5.32 |
|
280,464 |
(6.81) |
|
||
|
Total portfolio loans, net of unearned income |
|
3,836,538 |
|
3,352,966 |
|
14.42 |
|
3,687,762 |
4.03 |
|
|||
|
Allowance for loan losses |
|
(47,342) |
|
(53,476) |
|
11.47 |
|
(52,699) |
10.17 |
|
|||
|
|
|
Net portfolio loans |
|
3,789,196 |
|
3,299,490 |
|
14.84 |
|
3,635,063 |
4.24 |
|
|
|
Premises and equipment, net |
|
92,696 |
|
80,176 |
|
15.62 |
|
88,866 |
4.31 |
|
|||
|
Accrued interest receivable |
|
19,903 |
|
19,171 |
|
3.82 |
|
19,354 |
2.84 |
|
|||
|
Goodwill and other intangible assets, net |
|
321,972 |
|
281,570 |
|
14.35 |
|
324,465 |
(0.77) |
|
|||
|
Bank-owned life insurance |
|
120,457 |
|
112,720 |
|
6.86 |
|
119,671 |
0.66 |
|
|||
|
Other assets |
|
105,853 |
|
100,286 |
|
5.55 |
|
120,037 |
(11.82) |
|
|||
|
Total Assets |
|
$ 6,138,360 |
|
$ 5,576,959 |
|
10.07 |
% |
$ 6,078,717 |
0.98 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|||
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Non-interest bearing demand |
|
$ 917,478 |
|
$ 760,308 |
|
20.67 |
% |
$ 874,923 |
4.86 |
% |
||
|
|
Interest bearing demand |
|
870,319 |
|
784,748 |
|
10.90 |
|
831,368 |
4.69 |
|
||
|
|
Money market |
|
858,422 |
|
778,121 |
|
10.32 |
|
847,805 |
1.25 |
|
||
|
|
Savings deposits |
|
775,776 |
|
649,959 |
|
19.36 |
|
740,568 |
4.75 |
|
||
|
|
Certificates of deposit |
|
1,638,447 |
|
1,515,076 |
|
8.14 |
|
1,649,620 |
(0.68) |
|
||
|
|
|
Total deposits |
|
5,060,442 |
|
4,488,212 |
|
12.75 |
|
4,944,284 |
2.35 |
|
|
|
Federal Home Loan Bank borrowings |
|
59,918 |
|
91,617 |
|
(34.60) |
|
111,187 |
(46.11) |
|
|||
|
Other short-term borrowings |
|
124,179 |
|
186,886 |
|
(33.55) |
|
142,971 |
(13.14) |
|
|||
|
Junior subordinated debt owed to unconsolidated subsidiary trusts |
|
106,127 |
|
106,091 |
|
0.03 |
|
113,832 |
(6.77) |
|
|||
|
|
|
Total borrowings |
|
290,224 |
|
384,594 |
|
(24.54) |
|
367,990 |
(21.13) |
|
|
|
Accrued interest payable |
|
3,535 |
|
4,628 |
|
(23.62) |
|
3,856 |
(8.32) |
|
|||
|
Other liabilities |
|
47,471 |
|
40,203 |
|
18.08 |
|
48,403 |
(1.93) |
|
|||
|
Total Liabilities |
|
5,401,672 |
|
4,917,637 |
|
9.84 |
|
5,364,533 |
0.69 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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; |
|
|
|
|
|
|
|
|
|
|
|||
|
|
29,350,061 shares; 26,667,739 shares and 29,214,660 shares issued, respectively; |
|
|
|
|
|
|
|
|
|
|
||
|
|
29,350,061 shares; 26,665,519 shares and 29,214,660 shares outstanding, respectively |
|
61,144 |
|
55,558 |
|
10.05 |
|
60,863 |
0.46 |
|
||
|
Capital surplus |
|
244,352 |
|
192,159 |
|
27.16 |
|
241,672 |
1.11 |
|
|||
|
Retained earnings |
|
450,833 |
|
411,853 |
|
9.46 |
|
419,246 |
7.53 |
|
|||
|
Treasury stock (0; 2,220 and 0 shares - at cost, |
|
|
|
|
|
|
|
|
|
|
|||
|
|
respectively) |
|
- |
|
(44) |
|
(100.00) |
|
- |
- |
|
||
|
Accumulated other comprehensive income (loss) |
|
(18,442) |
|
1,019 |
|
(1,909.81) |
|
(6,365) |
(189.74) |
|
|||
|
Deferred benefits for directors |
|
(1,199) |
|
(1,223) |
|
1.96 |
|
(1,232) |
2.68 |
|
|||
|
Total Shareholders' Equity |
|
736,688 |
|
659,322 |
|
11.73 |
|
714,184 |
3.15 |
|
|||
|
Total Liabilities and Shareholders' Equity |
|
$ 6,138,360 |
|
$ 5,576,959 |
|
10.07 |
% |
$ 6,078,717 |
0.98 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WESBANCO, INC. |
|
|
|
|
|
|
|||
|
Consolidated Selected Financial Highlights |
|
|
|
|
Page 7 |
|
|||
|
(unaudited, dollars in thousands, except shares) |
|
|
|
|
|
|
|||
|
Balance sheets |
|
September 30, |
|
June 30, |
|
|
|||
|
Assets |
|
|
|
2013 |
|
2013 |
% Change |
|
|
|
Cash and due from banks |
|
$ 140,234 |
|
$ 69,645 |
101.36 |
% |
|||
|
Due from banks - interest bearing |
|
5,405 |
|
8,425 |
(35.85) |
|
|||
|
Securities: |
|
|
|
|
|
|
|
||
|
|
Available-for-sale, at fair value |
|
933,455 |
|
971,178 |
(3.88) |
|
||
|
|
Held-to-maturity (fair values of $607,215 and $615,203, respectively) |
602,588 |
|
608,761 |
(1.01) |
|
|||
|
|
|
Total securities |
|
1,536,043 |
|
1,579,939 |
(2.78) |
|
|
|
Loans held for sale |
|
6,601 |
|
14,517 |
(54.53) |
|
|||
|
Portfolio Loans: |
|
|
|
|
|
|
|||
|
|
Commercial real estate |
|
1,867,782 |
|
1,881,083 |
(0.71) |
|
||
|
|
Commercial and industrial |
|
544,202 |
|
542,071 |
0.39 |
|
||
|
|
Residential real estate |
|
879,703 |
|
831,362 |
5.81 |
|
||
|
|
Home equity |
|
283,488 |
|
280,368 |
1.11 |
|
||
|
|
Consumer |
|
261,363 |
|
266,498 |
(1.93) |
|
||
|
Total portfolio loans, net of unearned income |
|
3,836,538 |
|
3,801,382 |
0.92 |
|
|||
|
Allowance for loan losses |
|
(47,342) |
|
(50,381) |
6.03 |
|
|||
|
|
|
Net portfolio loans |
|
3,789,196 |
|
3,751,001 |
1.02 |
|
|
|
Premises and equipment, net |
|
92,696 |
|
91,894 |
0.87 |
|
|||
|
Accrued interest receivable |
|
19,903 |
|
19,248 |
3.40 |
|
|||
|
Goodwill and other intangible assets, net |
|
321,972 |
|
322,478 |
(0.16) |
|
|||
|
Bank-owned life insurance |
|
120,457 |
|
119,546 |
0.76 |
|
|||
|
Other assets |
|
105,853 |
|
107,318 |
(1.37) |
|
|||
|
Total Assets |
|
$ 6,138,360 |
|
$ 6,084,011 |
0.89 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
||
|
Deposits: |
|
|
|
|
|
|
|
||
|
|
Non-interest bearing demand |
|
$ 917,478 |
|
$ 901,559 |
1.77 |
% |
||
|
|
Interest bearing demand |
|
870,319 |
|
840,263 |
3.58 |
|
||
|
|
Money market |
|
858,422 |
|
845,294 |
1.55 |
|
||
|
|
Savings deposits |
|
775,776 |
|
775,248 |
0.07 |
|
||
|
|
Certificates of deposit |
|
1,638,447 |
|
1,576,391 |
3.94 |
|
||
|
|
|
Total deposits |
|
5,060,441 |
|
4,938,755 |
2.46 |
|
|
|
Federal Home Loan Bank borrowings |
|
59,918 |
|
60,344 |
(0.71) |
|
|||
|
Other short-term borrowings |
|
124,179 |
|
200,538 |
(38.08) |
|
|||
|
Junior subordinated debt owed to unconsolidated subsidiary trusts |
|
106,127 |
|
106,118 |
0.01 |
|
|||
|
|
|
Total borrowings |
|
290,224 |
|
367,000 |
(20.92) |
|
|
|
Accrued interest payable |
|
3,535 |
|
3,516 |
0.54 |
|
|||
|
Other liabilities |
|
47,471 |
|
48,508 |
(2.14) |
|
|||
|
Total liabilities |
|
5,401,672 |
|
5,357,779 |
0.82 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
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; |
|
|
|
|
|
|
|||
|
|
29,350,061 shares and 29,282,412 shares issued, respectively; |
|
|
|
|
|
|||
|
|
29,350,061 and 29,282,412 shares outstanding, respectively |
61,144 |
|
61,005 |
0.23 |
|
|||
|
Capital surplus |
|
244,352 |
|
242,640 |
0.71 |
|
|||
|
Retained earnings |
|
450,833 |
|
441,168 |
2.19 |
|
|||
|
Treasury stock ( 0 and 0 shares - at cost) |
|
- |
|
- |
- |
|
|||
|
Accumulated other comprehensive income (loss) |
|
(18,442) |
|
(17,329) |
(6.42) |
|
|||
|
Deferred benefits for directors |
|
(1,199) |
|
(1,252) |
4.23 |
|
|||
|
Total Shareholders' Equity |
|
736,688 |
|
726,232 |
1.44 |
|
|||
|
Total Liabilities and Shareholders' Equity |
|
$ 6,138,360 |
|
$ 6,084,011 |
0.89 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
WESBANCO, INC. |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Consolidated Selected Financial Highlights |
|
|
|
|
|
|
|
|
|
|
Page 8 |
||||
|
(unaudited, dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Average balance sheet and |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
net interest margin analysis |
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 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 |
|
|
$ 19,132 |
0.21% |
|
$ 23,504 |
0.17% |
|
$ 35,918 |
0.22% |
|
$ 28,407 |
0.23% |
||
|
Loans, net of unearned income (1) |
|
|
3,814,710 |
4.54% |
|
3,327,666 |
4.95% |
|
3,742,840 |
4.70% |
|
3,275,987 |
5.07% |
||
|
Securities: (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
|
|
|
1,165,023 |
2.48% |
|
1,226,207 |
2.52% |
|
1,188,633 |
2.47% |
|
1,268,739 |
2.60% |
|
Tax-exempt (3) |
|
|
|
|
395,705 |
5.22% |
|
326,722 |
5.86% |
|
378,684 |
5.28% |
|
318,210 |
5.98% |
|
Total securities |
|
|
|
|
1,560,728 |
3.18% |
|
1,552,929 |
3.22% |
|
1,567,317 |
3.15% |
|
1,586,949 |
3.28% |
|
Other earning assets |
|
|
|
|
12,838 |
1.50% |
|
18,904 |
0.42% |
|
16,164 |
0.88% |
|
20,448 |
0.44% |
|
Total earning assets (3) |
|
|
5,407,408 |
4.13% |
|
4,923,003 |
4.37% |
|
5,362,239 |
4.21% |
|
4,911,791 |
4.44% |
||
|
Other assets |
|
|
|
|
710,760 |
|
|
633,380 |
|
|
723,014 |
|
|
642,838 |
|
|
Total Assets |
|
|
|
|
$ 6,118,168 |
|
|
$ 5,556,383 |
|
|
$ 6,085,253 |
|
|
$ 5,554,629 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Interest bearing demand deposits |
|
|
$ 856,745 |
0.17% |
|
$ 753,966 |
0.21% |
|
$ 855,009 |
0.16% |
|
$ 736,144 |
0.21% |
||
|
Money market accounts |
|
|
|
843,520 |
0.16% |
|
768,527 |
0.25% |
|
845,960 |
0.16% |
|
775,192 |
0.31% |
|
|
Savings deposits |
|
|
|
|
773,432 |
0.07% |
|
649,231 |
0.12% |
|
766,574 |
0.07% |
|
633,829 |
0.15% |
|
Certificates of deposit |
|
|
|
1,628,335 |
1.36% |
|
1,511,330 |
1.70% |
|
1,625,312 |
1.45% |
|
1,543,703 |
1.73% |
|
|
Total interest bearing deposits |
|
|
4,102,032 |
0.62% |
|
3,683,054 |
0.81% |
|
4,092,855 |
0.66% |
|
3,688,868 |
0.86% |
||
|
Federal Home Loan Bank borrowings |
|
60,135 |
1.92% |
|
119,464 |
3.40% |
|
65,321 |
1.84% |
|
142,734 |
3.45% |
|||
|
Other borrowings |
|
|
|
|
157,328 |
1.64% |
|
195,109 |
2.38% |
|
146,632 |
1.73% |
|
195,810 |
2.39% |
|
Junior subordinated debt |
|
|
|
106,123 |
3.01% |
|
106,087 |
3.26% |
|
108,181 |
3.10% |
|
106,079 |
3.27% |
|
|
Total interest bearing liabilities |
4,425,618 |
0.73% |
|
4,103,714 |
1.03% |
|
4,412,989 |
0.77% |
|
4,133,491 |
1.08% |
||||
|
Non-interest bearing demand deposits |
906,638 |
|
|
756,782 |
|
|
890,456 |
|
|
734,248 |
|
||||
|
Other liabilities |
|
|
|
|
52,450 |
|
|
40,221 |
|
|
52,564 |
|
|
39,241 |
|
|
Shareholders' equity |
|
|
|
|
733,462 |
|
|
655,666 |
|
|
729,244 |
|
|
647,649 |
|
|
Total Liabilities and Shareholders' Equity |
$ 6,118,168 |
|
|
$ 5,556,383 |
|
|
$ 6,085,253 |
|
|
$ 5,554,629 |
|
||||
|
Taxable equivalent net interest spread |
|
3.40% |
|
|
3.34% |
|
|
3.44% |
|
|
3.36% |
||||
|
Taxable equivalent net interest margin |
|
3.52% |
|
|
3.51% |
|
|
3.58% |
|
|
3.53% |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 September 30, 2013 and 2012, |
|
|
|
||||||||||||
|
and $3.0 million and $3.1 million for the nine months ended September 30, 2013 and 2012, respectively. |
|
|
|
|
|
|
|||||||||
|
Additionally, loan accretion included in interest income on acquired Fidelity loans was $0.4 million for the three months |
|
|
|
|
|||||||||||
|
ended September 30, 2013 and $2.3 million for the nine months ended September 30, 2013, while accretion on acquired Fidelity interest bearing liabilities |
|
||||||||||||||
|
was $0.4 million for the three months ended September 30, 2013 and $1.4 million for the nine months ended September 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 |
Sept. 30, |
|
June 30, |
|
Mar. 31, |
|
Dec. 31, |
|
Sept. 30, |
|||
|
Interest income |
2013 |
|
2013 |
|
2013 |
|
2012 |
|
2012 |
|||
|
|
Loans, including fees |
$ 43,678 |
|
$ 43,753 |
|
$ 44,276 |
|
$ 42,311 |
|
$ 41,423 |
||
|
|
Interest and dividends on securities: |
|
|
|
|
|
|
|
|
|
||
|
|
|
Taxable |
7,226 |
|
7,357 |
|
7,433 |
|
7,677 |
|
7,722 |
|
|
|
|
Tax-exempt |
3,355 |
|
3,264 |
|
3,127 |
|
3,129 |
|
3,113 |
|
|
|
|
|
Total interest and dividends on securities |
10,581 |
|
10,621 |
|
10,560 |
|
10,806 |
|
10,835 |
|
|
Other interest income |
58 |
|
50 |
|
56 |
|
55 |
|
30 |
||
|
Total interest and dividend income |
54,317 |
|
54,424 |
|
54,892 |
|
53,172 |
|
52,288 |
|||
|
Interest expense |
|
|
|
|
|
|
|
|
|
|||
|
|
Interest bearing demand deposits |
369 |
|
365 |
|
301 |
|
395 |
|
397 |
||
|
|
Money market deposits |
345 |
|
338 |
|
339 |
|
397 |
|
487 |
||
|
|
Savings deposits |
128 |
|
127 |
|
141 |
|
168 |
|
202 |
||
|
|
Certificates of deposit |
5,597 |
|
5,881 |
|
6,148 |
|
6,321 |
|
6,450 |
||
|
|
|
|
Total interest expense on deposits |
6,439 |
|
6,711 |
|
6,929 |
|
7,281 |
|
7,536 |
|
|
Federal Home Loan Bank borrowings |
291 |
|
289 |
|
319 |
|
789 |
|
1,020 |
||
|
|
Other short-term borrowings |
651 |
|
627 |
|
623 |
|
976 |
|
1,169 |
||
|
|
Junior subordinated debt owed to unconsolidated subsidiary trusts |
805 |
|
808 |
|
893 |
|
840 |
|
869 |
||
|
|
|
|
Total interest expense |
8,186 |
|
8,435 |
|
8,764 |
|
9,886 |
|
10,594 |
|
Net interest income |
46,131 |
|
45,989 |
|
46,128 |
|
43,286 |
|
41,694 |
|||
|
|
Provision for credit losses |
2,819 |
|
1,021 |
|
2,102 |
|
3,272 |
|
4,497 |
||
|
Net interest income after provision for credit losses |
43,312 |
|
44,968 |
|
44,026 |
|
40,014 |
|
37,197 |
|||
|
Non-interest income |
|
|
|
|
|
|
|
|
|
|||
|
|
Trust fees |
4,854 |
|
4,823 |
|
5,018 |
|
4,655 |
|
4,379 |
||
|
|
Service charges on deposits |
4,650 |
|
4,462 |
|
4,197 |
|
4,565 |
|
4,362 |
||
|
|
Electronic banking fees |
3,124 |
|
3,195 |
|
2,866 |
|
2,807 |
|
2,846 |
||
|
|
Net securities brokerage revenue |
1,506 |
|
1,641 |
|
1,497 |
|
1,284 |
|
1,131 |
||
|
|
Bank-owned life insurance |
911 |
|
880 |
|
1,949 |
|
870 |
|
891 |
||
|
|
Net gains on sales of mortgage loans |
745 |
|
701 |
|
712 |
|
1,015 |
|
993 |
||
|
|
Net securities (losses) / gains |
(15) |
|
686 |
|
16 |
|
752 |
|
316 |
||
|
|
Net gain / (loss) on other real estate owned and other assets |
8 |
|
101 |
|
(46) |
|
(7) |
|
(48) |
||
|
|
Other income |
1,333 |
|
1,235 |
|
1,287 |
|
1,656 |
|
1,092 |
||
|
|
|
|
Total non-interest income |
17,116 |
|
17,724 |
|
17,496 |
|
17,597 |
|
15,962 |
|
Non-interest expense |
|
|
|
|
|
|
|
|
|
|||
|
|
Salaries and wages |
16,480 |
|
15,772 |
|
15,826 |
|
15,885 |
|
14,758 |
||
|
|
Employee benefits |
5,323 |
|
5,813 |
|
6,345 |
|
5,924 |
|
5,000 |
||
|
|
Net occupancy |
2,921 |
|
2,830 |
|
3,192 |
|
2,771 |
|
2,654 |
||
|
|
Equipment |
2,692 |
|
2,802 |
|
2,407 |
|
2,604 |
|
2,300 |
||
|
|
Marketing |
1,585 |
|
1,624 |
|
805 |
|
953 |
|
795 |
||
|
|
FDIC insurance |
916 |
|
919 |
|
971 |
|
937 |
|
951 |
||
|
|
Amortization of intangible assets |
556 |
|
561 |
|
625 |
|
570 |
|
519 |
||
|
|
Restructuring and merger-related expense |
36 |
|
51 |
|
1,178 |
|
2,370 |
|
1,518 |
||
|
|
Other operating expenses |
9,500 |
|
9,127 |
|
9,398 |
|
9,567 |
|
8,295 |
||
|
|
|
|
Total non-interest expense |
40,009 |
|
39,499 |
|
40,747 |
|
41,581 |
|
36,790 |
|
Income before provision for income taxes |
20,419 |
|
23,193 |
|
20,775 |
|
16,030 |
|
16,369 |
|||
|
|
Provision for income taxes |
4,884 |
|
6,176 |
|
4,754 |
|
3,380 |
|
3,463 |
||
|
Net Income |
$ 15,535 |
|
$ 17,017 |
|
$ 16,021 |
|
$ 12,650 |
|
$ 12,906 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable equivalent net interest income |
$ 47,938 |
|
$ 47,747 |
|
$ 47,812 |
|
$ 44,971 |
|
$ 43,370 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per common share data |
|
|
|
|
|
|
|
|
|
|||
|
Net income per common share - basic |
$ 0.53 |
|
$ 0.58 |
|
$ 0.55 |
|
$ 0.46 |
|
$ 0.48 |
|||
|
Net income per common share - diluted |
$ 0.53 |
|
$ 0.58 |
|
$ 0.55 |
|
$ 0.46 |
|
$ 0.48 |
|||
|
Dividends declared |
$ 0.20 |
|
$ 0.19 |
|
$ 0.19 |
|
$ 0.18 |
|
$ 0.18 |
|||
|
Book value (period end) |
$ 25.10 |
|
$ 24.80 |
|
$ 24.80 |
|
$ 24.45 |
|
$ 24.73 |
|||
|
Tangible book value (period end) (1) |
$ 14.13 |
|
$ 13.79 |
|
$ 13.74 |
|
$ 13.34 |
|
$ 14.17 |
|||
|
Average common shares outstanding - basic |
29,325,128 |
|
29,245,201 |
|
29,211,321 |
|
27,523,958 |
|
26,664,882 |
|||
|
Average common shares outstanding - diluted |
29,412,458 |
|
29,308,806 |
|
29,268,483 |
|
27,549,655 |
|
26,672,849 |
|||
|
Period end common shares outstanding |
29,350,061 |
|
29,282,412 |
|
29,214,018 |
|
29,214,660 |
|
26,665,519 |
|||
|
Full time equivalent employees |
1,462 |
|
1,478 |
|
1,448 |
|
1,507 |
|
1,366 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 |
|
||||||||
|
|
|
|
|
Sept. 30, |
|
June 30, |
|
Mar. 31, |
|
Dec. 31, |
|
Sept. 30, |
|
|
Asset quality data |
|
2013 |
|
2013 |
|
2013 |
|
2012 |
|
2012 |
|
||
|
Non-performing assets: |
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Troubled debt restructurings - accruing |
|
$ 15,480 |
|
$ 19,269 |
|
$ 20,420 |
|
$ 24,281 |
|
$ 24,858 |
|
|
|
|
Non-accrual loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Troubled debt restructurings |
|
12,920 |
|
15,655 |
|
17,106 |
|
15,001 |
|
9,449 |
|
|
|
|
Other non-accrual loans |
|
25,240 |
|
27,414 |
|
25,620 |
|
24,371 |
|
24,841 |
|
|
|
|
Total non-accrual loans |
|
38,160 |
|
43,069 |
|
42,726 |
|
39,372 |
|
34,290 |
|
|
|
|
Total non-performing loans |
|
53,640 |
|
62,338 |
|
63,146 |
|
63,653 |
|
59,148 |
|
|
|
Other real estate and repossessed assets |
|
5,184 |
|
5,007 |
|
5,147 |
|
5,988 |
|
3,951 |
|
|
|
|
|
Total non-performing assets |
|
$ 58,824 |
|
$ 67,345 |
|
$ 68,293 |
|
$ 69,641 |
|
$ 63,099 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Past due loans (1): |
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Loans past due 30-89 days |
|
$ 15,611 |
|
$ 15,792 |
|
$ 14,507 |
|
$ 22,543 |
|
$ 17,332 |
|
|
|
|
Loans past due 90 days or more |
|
3,043 |
|
3,594 |
|
4,345 |
|
5,294 |
|
3,560 |
|
|
|
|
|
Total past due loans |
|
$ 18,654 |
|
$ 19,386 |
|
$ 18,852 |
|
$ 27,837 |
|
$ 20,892 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Criticized and classified loans (2): |
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Criticized loans |
|
$ 76,442 |
|
$ 78,457 |
|
$ 84,146 |
|
$ 86,777 |
|
$ 102,792 |
|
|
|
|
Classified loans |
|
64,857 |
|
80,621 |
|
83,988 |
|
85,960 |
|
94,613 |
|
|
|
|
|
Total criticized and classified loans |
|
$ 141,299 |
|
$ 159,078 |
|
$ 168,134 |
|
$ 172,737 |
|
$ 197,405 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans past due 30-89 days / total loans |
|
0.41 |
% |
0.42 |
% |
0.39 |
% |
0.61 |
% |
0.52 |
% |
||
|
Loans past due 90 days or more / total loans |
|
0.08 |
|
0.09 |
|
0.12 |
|
0.14 |
|
0.11 |
|
||
|
Non-performing loans / total loans |
|
1.40 |
|
1.64 |
|
1.71 |
|
1.73 |
|
1.76 |
|
||
|
Non-performing assets/total loans, other |
|
|
|
|
|
|
|
|
|
|
|
||
|
|
real estate and repossessed assets |
|
1.53 |
|
1.77 |
|
1.85 |
|
1.89 |
|
1.88 |
|
|
|
Criticized and classified loans / total loans |
|
3.68 |
|
4.18 |
|
4.56 |
|
4.68 |
|
5.89 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses |
|
|
|
|
|
|
|
|
|
|
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|
Allowance for loan losses |
|
$ 47,342 |
|
$ 50,381 |
|
$ 51,664 |
|
$ 52,699 |
|
$ 53,476 |
|
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|
Provision for credit losses |
|
2,819 |
|
1,021 |
|
2,102 |
|
3,272 |
|
4,497 |
|
||
|
Net loan and deposit account overdraft charge-offs |
5,804 |
|
2,433 |
|
3,032 |
|
4,124 |
|
4,566 |
|
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|
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|
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|
Annualized net loan charge-offs /average loans |
0.60 |
% |
0.26 |
% |
0.34 |
% |
0.47 |
% |
0.54 |
% |
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|
Allowance for loan losses / portfolio loans |
|
1.23 |
% |
1.33 |
% |
1.40 |
% |
1.43 |
% |
1.59 |
% |
||
|
Allowance for loan losses / non-performing loans |
0.88 |
x |
0.81 |
x |
0.82 |
x |
0.83 |
x |
0.90 |
x |
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|
Allowance for loan losses / non-performing loans and |
|
|
|
|
|
|
|
|
|
|
|||
|
|
loans past due |
|
0.65 |
x |
0.62 |
x |
0.63 |
x |
0.59 |
x |
0.67 |
x |
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Quarter Ended |
|
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|
Sept. 30, |
|
June 30, |
|
Mar. 31, |
|
Dec. 31, |
|
Sept. 30, |
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|
|
2013 |
|
2013 |
|
2013 |
|
2012 |
|
2012 |
|
|
Capital ratios |
|
|
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|
Tier I leverage capital |
|
9.27 |
% |
9.13 |
% |
8.92 |
% |
9.34 |
% |
9.11 |
% |
||
|
Tier I risk-based capital |
|
13.08 |
|
12.85 |
|
12.88 |
|
12.82 |
|
13.20 |
|
||
|
Total risk-based capital |
|
14.23 |
|
14.08 |
|
14.13 |
|
14.07 |
|
14.45 |
|
||
|
Average shareholders' equity to average assets |
11.99 |
|
12.05 |
|
11.91 |
|
11.87 |
|
11.80 |
|
|||
|
Tangible equity to tangible assets (3) |
|
7.13 |
|
7.01 |
|
6.97 |
|
6.77 |
|
7.13 |
|
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|
(1) Excludes non-performing loans. |
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|
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|
(2) Criticized and classified loans may include loans that are also reported as non-performing or past due. |
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|
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|
(3) See non-GAAP financial measures for additional information relating to the calculation of this ratio. |
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|
NON-GAAP FINANCIAL MEASURES |
|
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|
Page 11 |
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|||
|
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. |
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|
Three Months Ended |
|
Year to Date |
|||||||||
|
|
|
|
|
Sept. 30, |
|
June 30, |
|
Mar. 31, |
|
Dec. 31, |
|
Sept. 30, |
|
Sept. 30, |
|
|
(unaudited, dollars in thousands, except shares and per share amounts) |
2013 |
|
2013 |
|
2013 |
|
2012 |
|
2012 |
|
2013 |
2012 |
|||
|
Return on average tangible equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Net income (annualized) |
|
$ 61,634 |
|
$ 68,256 |
|
$ 64,974 |
|
$ 50,325 |
|
$ 51,345 |
|
$ 64,941 |
$ 49,282 |
|
|
|
Plus: amortization of intangibles (annualized) (1) |
1,434 |
|
1,464 |
|
1,647 |
|
1,473 |
|
1,342 |
|
1,514 |
1,372 |
||
|
|
Net income before amortization of intangibles (annualized) |
63,068 |
|
69,720 |
|
66,621 |
|
51,798 |
|
52,687 |
|
66,455 |
50,654 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total shareholders' equity |
733,462 |
|
731,935 |
|
722,211 |
|
683,694 |
|
655,666 |
|
729,244 |
647,649 |
||
|
|
Less: average goodwill and other intangibles |
(322,209) |
|
(322,717) |
|
(323,662) |
|
(290,054) |
|
(281,820) |
|
(322,857) |
(282,334) |
||
|
|
Average tangible equity |
|
411,253 |
|
409,218 |
|
398,548 |
|
393,640 |
|
373,846 |
|
406,387 |
365,315 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average tangible equity |
|
15.34% |
|
17.04% |
|
16.72% |
|
13.16% |
|
14.09% |
|
16.35% |
13.87% |
||
|
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|
|
|
|
|
|
|
Net Income, excluding restructuring and merger-related expenses per diluted share: |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Net income |
|
|
$ 15,535 |
|
$ 17,017 |
|
$ 16,021 |
|
$ 12,650 |
|
$ 12,906 |
|
$ 48,572 |
$ 36,894 |
|
|
Add: Restructuring and merger-related expenses, net of tax (1) |
23 |
|
33 |
|
766 |
|
1,541 |
|
987 |
|
822 |
987 |
||
|
|
Net income, excluding restructuring and merger-related expenses |
$ 15,558 |
|
$ 17,050 |
|
$ 16,787 |
|
$ 14,191 |
|
$ 13,893 |
|
$ 49,394 |
$ 37,881 |
||
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
Average common shares outstanding - diluted |
29,412,458 |
|
29,308,806 |
|
29,268,483 |
|
27,549,655 |
|
26,672,849 |
|
29,328,305 |
26,646,719 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, excluding restructuring and merger-related expense per diluted share |
$ 0.53 |
|
$ 0.58 |
|
$ 0.57 |
|
$ 0.52 |
|
$ 0.52 |
|
$ 1.68 |
$ 1.42 |
|||
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|
|
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|
|
Period End |
|
|
|
||||||||
|
|
|
|
|
Sept. 30, |
|
June 30, |
|
Mar. 31, |
|
Dec. 31, |
|
Sept. 30, |
|
|
|
|
|
|
|
|
2013 |
|
2013 |
|
2013 |
|
2012 |
|
2012 |
|
|
|
|
Tangible book value: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Total shareholders' equity |
|
$ 736,688 |
|
$ 726,232 |
|
$ 724,409 |
|
$ 714,184 |
|
$ 659,322 |
|
|
|
|
|
|
Less: goodwill and other intangible assets |
(321,972) |
|
(322,478) |
|
(323,003) |
|
(324,465) |
|
(281,570) |
|
|
|
||
|
|
Tangible equity |
|
414,716 |
|
403,754 |
|
401,406 |
|
389,719 |
|
377,752 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding |
|
29,350,061 |
|
29,282,412 |
|
29,214,018 |
|
29,214,660 |
|
26,665,519 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book value |
|
|
$ 14.13 |
|
$ 13.79 |
|
$ 13.74 |
|
$ 13.34 |
|
$ 14.17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible equity to tangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Total shareholders' equity |
|
$ 736,688 |
|
$ 726,232 |
|
$ 724,409 |
|
$ 714,184 |
|
$ 659,322 |
|
|
|
|
|
|
Less: goodwill and other intangible assets |
(321,972) |
|
(322,478) |
|
(323,003) |
|
(324,465) |
|
(281,570) |
|
|
|
||
|
|
Tangible equity |
|
414,716 |
|
403,754 |
|
401,406 |
|
389,719 |
|
377,752 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
6,138,360 |
|
6,084,011 |
|
6,085,448 |
|
6,078,717 |
|
5,576,959 |
|
|
|
|
|
Less: goodwill and other intangible assets |
(321,972) |
|
(322,478) |
|
(323,003) |
|
(324,465) |
|
(281,570) |
|
|
|
||
|
|
Tangible assets |
|
5,816,388 |
|
5,761,533 |
|
5,762,445 |
|
5,754,252 |
|
5,295,389 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible equity to tangible assets |
|
7.13% |
|
7.01% |
|
6.97% |
|
6.77% |
|
7.13% |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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. |
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|
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|
|
|
|
|
|
(1) Tax effected at 35%. |
|
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|
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|
|
|
|
|
|
|
|
SOURCE WesBanco, Inc.