WESBANCO, INC. 
By WHEELING, W.Va., Jan. 24, 2012 /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 year and fourth quarter ended December 31, 2011.
Net income for the year ended December 31, 2011 was $43.8 million compared to $35.6 million for the same period in 2010, representing an increase of 23.0%, while diluted earnings per share were $1.65 compared to $1.34 per share for 2010. For the fourth quarter of 2011, net income was $10.6 million compared to $10.3 million for the fourth quarter of 2010, while diluted earnings per share were $0.40 compared to $0.39 per share for the fourth quarter of 2010.
Mr. Limbert commented, "WesBanco continued to improve earnings in 2011 through increased net interest income, lower operating expenses and a lower provision for credit losses compared to 2010. Continued focus on credit quality as we emerge from the recession resulted in significant decreases in non-performing assets, classified, criticized and past due loans and OREO in 2011. In addition, trust, securities brokerage and insurance operations continued to provide significant non-interest income with trust assets under management increasing again in 2011."
Net Interest Income
Net interest income increased $3.3 million or 2.0% for the 2011 year due to increases in the net interest margin. The improved net interest margin was caused by the cost of funds declining faster than the decline in asset yields. For the fourth quarter of 2011, net interest income decreased $0.4 million or 1.0% compared to the same quarter of 2010. This was primarily due to the continued low interest rate environment, resulting in a reduction in the yield on earning assets at a more rapid pace than the decrease in average rates paid on interest bearing liabilities. In addition, the fourth quarter reflects a change in asset mix, with a higher percentage of lower-yielding investments.
The net interest margin was 3.66% for 2011 and 3.56% in the fourth quarter, an increase of 6 basis points and a decrease of 10 basis points respectively, compared to the same periods in 2010. The average rate on interest bearing liabilities decreased by 35 basis points in 2011, and 26 basis points in the fourth quarter, while the rate on earning assets declined by 27 and 33 basis points, respectively. Rates earned on the securities and loan portfolios have declined through reinvestment at current lower interest rates with competitive pressures resulting in decreasing rates on high quality loans. However, interest income from the investment portfolio increased 2.9% in 2011 and 4.7% in the fourth quarter compared to 2010, due to the increase in average outstanding balances. The improvement in the cost of funds for the year was due to lower offered rates on maturing certificates of deposit, an increase in balances of lower-cost products including checking, money market and savings accounts, and lower balances of higher cost FHLB borrowings. Average total deposits increased 3.9% in the fourth quarter compared to the fourth quarter of 2010. The average balance for FHLB borrowings, which have the highest average interest cost at 3.35% representing 11.4% of interest expense, decreased 32.9% in the fourth quarter of 2011 from the fourth quarter of 2010 through scheduled maturities. The FHLB maturities were funded primarily by the increase in deposits. Improvements in the mix of deposit accounts also contributed to the improved cost of funds, with average CDs decreasing to 36.9% of total average deposits in the fourth quarter, from 41.2% in the fourth quarter of 2010, while total transaction account types increased to 63.1% of total deposits.
Provision and Allowance for Credit Losses
The provision for credit losses decreased $9.3 million for 2011 compared to 2010. The provision decreased $1.2 million in the fourth quarter compared to the third quarter of 2011 and was substantially unchanged compared to the fourth quarter of 2010. Net charge-offs for the fourth quarter decreased $7.5 million compared to the third quarter of 2011 but increased $3.3 million compared to the fourth quarter of 2010. The sequential quarter decrease was primarily due to $10.3 million of charge-offs in the third quarter relating to the sale of non-performing commercial real estate loans. The increase in the fourth quarter compared to the fourth quarter of 2010 was attributable to higher levels of losses due to the sluggish economy which impacted all segments of the loan portfolio throughout the year. However, fluctuations in sequential quarter charge-offs are the result of the timing of recognizing losses in the portfolio and are therefore not the best indicator of overall credit quality.
Classified and criticized loans decreased $62.0 million or 19.4% compared to December 31, 2010, of which, $17.2 million was attributable to the sale of non-performing loans in the third quarter with the remainder of the decrease resulting from improvements in credit quality, principal reductions or other orderly exits of certain loans, and other charge-offs. Classified and criticized loans decreased $12.5 million or 4.6% in the fourth quarter compared to the previous quarter of 2011. Loans past due 30 days or more and accruing interest at December 31, 2011 decreased 22.9% compared to December 31, 2010.
Total non-performing loans at December 31, 2011 decreased $9.4 million or 9.8% from December 31, 2010, and increased $2.7 million or 3.2% from September 30, 2011. Non-accrual loans at December 31, 2011, which comprise the greatest portion of total non-performing loans, increased $8.7 million or 17.8% compared to the fourth quarter of 2010, but were relatively unchanged compared to September 30, 2011. The increase from the end of 2010 was the result of certain troubled debt restructured loans being placed on non-accrual, primarily during the first six months of 2011, partially offset by the sale of certain non-accrual loans in the third quarter of 2011, and Ohio residential mortgages in foreclosure due to the protracted foreclosure timeline in that state. Troubled debt restructurings accruing interest decreased $18.1 million or 38.1% compared to December 31, 2010 also primarily due to the loan sale and the movement of the aforementioned restructured loans to non-accrual.
The allowance for loan losses decreased by 10.2% compared to December 31, 2010, and 0.5% compared to September 30, 2011. The decrease in the allowance during 2011 was due primarily to the reduction in classified and criticized loans, lower delinquency, and the elimination of reserves attributable to loans that were charged-off during the year, including loans that were sold in the third quarter of 2011. The allowance for loan losses was 1.69% of total loans at December 31, 2011, 1.70% at September 30, 2011 and 1.86% at December 31, 2010.
Non-Interest Income and Non-Interest Expense
For 2011, non-interest income increased $0.3 million or 0.5%, and, in the fourth quarter, increased $0.8 million or 5.1% compared to the same periods of 2010. The annual increase was primarily due to $1.6 million increase in electronic banking fees due to increased transaction volume, a $1.3 million or 8.5% increase in trust fees through new business and fee increases, and a decrease in losses on other real estate owned of $2.8 million. These improvements were partially offset by a $2.4 million decrease in net securities gains, a $0.9 million decrease in bank-owned life insurance due to a benefit claim recognized in the fourth quarter of 2010, and a decrease in service charges on deposits of $2.0 million due to regulatory changes effective in the third quarter of last year. Service charges on deposits stabilized in the second half of 2011 compared to both the second half of 2010 and the first six months of 2011. Also for the year, net gains on sale of mortgage loans decreased $0.9 million as more loans with terms of 15 years and less were being retained in 2011. The quarterly increase was primarily due to a $0.8 million increase in net securities gains, a $0.5 million increase in electronic banking fees and a decrease in losses on other real estate owned of $0.3 million. These improvements were partially offset by the aforementioned decrease in bank-owned life insurance.
Non-interest expense decreased $0.9 million or 0.6% for 2011 and was nearly unchanged in the fourth quarter, compared to the same periods in 2010. For the year, FDIC insurance decreased $1.9 million due to a new calculation by the FDIC effective earlier this year and equipment expense decreased $1.2 million due to lower service agreement and depreciation expense. These decreases were partially offset by a $1.6 million or 2.9% increase in salaries and wages due to routine annual adjustments to compensation, and a $1.0 million increase in marketing, primarily from customer incentives that were part of promotions focused on growing demand deposits and home equity loans. In the fourth quarter FDIC insurance decreased $0.6 million, while salaries and wages increased $0.3 million or 2.2%, and employee benefits increased $0.4 million from higher health care costs. WesBanco's efficiency ratio was 59.5% for 2011, down from 60.9% for 2010, and 59.8% in the fourth quarter compared to 60.4% in the fourth quarter of 2010.
Financial Condition
Total assets at December 31, 2011 increased 3.3% or $174.6 million from the prior year-end primarily from increased investments in securities, funded by increases in deposits. Available funding was also utilized to pay down higher-cost FHLB borrowings by $85.4 million or 33.7%. The investment portfolio has grown 12.8% to $1.6 billion at December 31, 2011 which provides significant amounts of liquidity as well as additional interest income.
Portfolio loan production increased significantly in 2011 with new loan volume at the highest level in the last five years. Categories with increases in loan production included commercial, commercial real estate and personal loans with commensurate improvement in fee income for the year. Commercial loan production in 2011 was 44% greater than in 2010. In addition, the bank began retaining more residential mortgage loans in the portfolio during the year, rather than selling them to the secondary market. However, total portfolio loans at December 31, 2011 decreased 1.5% or $49.3 million from December 31, 2010. The net decrease in portfolio loans resulted primarily from the payoffs of performing commercial real estate loans that were refinanced in the secondary market or as a result of borrowers selling properties, and pay-downs on commercial lines of credit. However, excluding the effect of the loan sale in the third quarter of 2011, portfolio loans decreased only 1.0% for the year and, in the fourth quarter loan growth was achieved in all categories other than commercial real estate.
Total deposits increased 5.3% or $221.4 million compared to December 31, 2010, due to an increase in all deposit categories other than CDs, which decreased 6.4% due to planned reductions through lower offered rates for new and rollover CDs. This growth included deposits received from customers participating in Marcellus shale gas activity, which exceeded $125 million in initial deposits for the year. The total increase in lower cost deposit categories other than CDs was 13.5%, with non-interest bearing demand deposits increasing 19.4% as a result of marketing campaigns, customer incentives, additional wealth management deposits, and treasury management and other business banking initiatives for commercial customers. Total non-interest bearing checking accounts are now 16.1% of total deposits compared to 14.2% at year-end 2010. WesBanco's loan-to-deposit ratio was 74% at year-end. This ratio is an indication of funding capability for more loan growth.
WesBanco continued to strengthen its regulatory capital ratios with tier I leverage at 8.71%, tier I risk-based capital at 13.06%, and total risk-based capital at 14.32%, all of which improved in each of the last nine consecutive quarters. 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 6.68% at December 31, 2011, a 35 basis point increase from 6.33% at December 31, 2010, primarily due to a $26.9 million increase in shareholders' equity. The increase in shareholders' equity was due to improved operating results net of dividends declared. WesBanco increased its quarterly dividend to $0.15 per share in February and to $0.16 per share in August, representing a cumulative 14.3% increase over the prior year rate.
WesBanco is a multi-state bank holding company with total assets of approximately $5.5 billion, operating through 112 branch locations and 122 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, 2010 and documents subsequently filed by WesBanco with the Securities and Exchange Commission ("SEC"), including WesBanco's Forms 10-Q for the quarters ended March 31, June 30, and September 30, 2011 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, 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, Financial Institution Regulatory Authority, Municipal Securities Rulemaking Board, Securities Investors Protection Corporation, and other regulatory bodies; potential legislative and federal and state regulatory actions and reform, including, without limitation, the impact of the implementation of the Dodd-Frank Act; adverse decisions of federal and state courts; fraud, scams and schemes of third parties; internet hacking; competitive conditions in the financial services industry; rapidly changing technology affecting financial services; marketability of debt instruments and corresponding impact on fair value adjustments; and/or other external developments materially impacting WesBanco's operational and financial performance. WesBanco does not assume any duty to update forward-looking statements.
WESBANCO, INC.
Consolidated Selected Financial Highlights
------------------------------------------
(unaudited, dollars in thousands, except shares and per share amounts)
For the Three Months Ended For the Year Ended
STATEMENT OF INCOME December 31, December 31,
------------------- ------------ ------------
Interest and dividend income 2011 2010 % Change 2011 2010 % Change
---- ---- -------- ---- ---- --------
Loans, including fees $42,767 $46,341 (7.71%) $175,818 $189,380 (7.16%)
Interest and dividends on securities:
Taxable 8,862 8,589 3.18% 36,034 35,375 1.86%
Tax-exempt 3,059 2,799 9.29% 12,109 11,408 6.14%
----- ----- ---- ------ ------ ----
Total interest and dividends on
securities 11,921 11,388 4.68% 48,143 46,783 2.91%
------ ------ ---- ------ ------ ----
Other interest income 52 66 (21.21%) 206 365 (43.56%)
--- --- -------- --- --- --------
Total interest and dividend income 54,740 57,795 (5.29%) 224,167 236,528 (5.23%)
------ ------ ------- ------- ------- -------
Interest Expense
Interest bearing demand deposits 416 610 (31.80%) 1,814 2,561 (29.17%)
Money market deposits 1,179 1,581 (25.43%) 5,148 7,529 (31.62%)
Savings deposits 337 484 (30.37%) 1,505 2,242 (32.87%)
Certificates of deposit 7,347 8,518 (13.75%) 31,054 36,817 (15.65%)
----- ----- -------- ------ ------ --------
Total interest expense on deposits 9,279 11,193 (17.10%) 39,521 49,149 (19.59%)
Federal Home Loan Bank borrowings 1,456 2,244 (35.12%) 7,199 12,721 (43.41%)
Other short-term borrowings 1,232 1,214 1.48% 4,823 4,774 1.03%
Junior subordinated debt owed to
unconsolidated subsidiary trusts 839 818 2.57% 3,259 3,792 (14.06%)
--- --- ---- ----- ----- --------
Total interest expense 12,806 15,469 (17.22%) 54,802 70,436 (22.20%)
------ ------ -------- ------ ------ --------
Net interest income 41,934 42,326 (0.93%) 169,365 166,092 1.97%
Provision for credit losses 9,631 9,625 0.06% 35,311 44,578 (20.79%)
----- ----- ---- ------ ------ --------
Net interest income after provision
for credit losses 32,303 32,701 (1.22%) 134,054 121,514 10.32%
------ ------ ------- ------- ------- -----
Non-interest income
Trust fees 4,198 4,377 (4.09%) 17,173 15,835 8.45%
Service charges on deposits 4,638 4,731 (1.97%) 18,629 20,645 (9.77%)
Electronic banking fees 2,603 2,147 21.24% 10,088 8,482 18.93%
Net securities brokerage revenue 1,048 922 13.67% 4,413 4,563 (3.29%)
Bank-owned life insurance 864 1,716 (49.65%) 3,566 4,505 (20.84%)
Net gains on sales of mortgage loans 679 806 (15.76%) 1,977 2,885 (31.47%)
Net securities gains 865 78 1008.97% 963 3,362 (71.36%)
Net loss on other real estate owned
and other assets (312) (629) 50.40% (1,290) (4,128) 68.75%
Other income 1,185 849 39.58% 4,369 3,450 26.64%
----- --- ----- ----- ----- -----
Total non-interest income 15,768 14,997 5.14% 59,888 59,599 0.48%
------ ------ ---- ------ ------ ----
Non-interest expense
Salaries and wages 14,433 14,127 2.17% 56,045 54,452 2.93%
Employee benefits 4,656 4,299 8.30% 17,949 18,315 (2.00%)
Net occupancy 2,805 2,595 8.09% 11,255 10,728 4.91%
Equipment 2,193 2,475 (11.39%) 8,745 9,914 (11.79%)
Marketing 1,281 1,179 8.65% 5,142 4,187 22.81%
FDIC insurance 1,008 1,653 (39.02%) 4,768 6,681 (28.63%)
Amortization of intangible assets 588 669 (12.11%) 2,410 2,729 (11.69%)
Other operating expenses 8,530 8,514 0.19% 33,981 34,146 (0.48%)
----- ----- ---- ------ ------ -------
Total non-interest expense 35,494 35,511 (0.05%) 140,295 141,152 (0.61%)
------ ------ ------- ------- ------- -------
Income before provision for income
taxes 12,577 12,187 3.20% 53,647 39,961 34.25%
Provision for income taxes 1,940 1,877 3.36% 9,838 4,350 126.16%
----- ----- ---- ----- ----- ------
Net income $10,637 $10,310 3.17% $43,809 $35,611 23.02%
======= ======= ==== ======= ======= =====
Taxable equivalent net interest income $43,581 $43,833 (0.57%) $175,885 $172,234 2.12%
Per common share data
---------------------
Net income per common share - basic $0.40 $0.39 2.56% $1.65 $1.34 23.13%
Net income per common share - diluted $0.40 $0.39 2.56% $1.65 $1.34 23.13%
Dividends declared $0.16 $0.14 14.29% $0.62 $0.56 10.71%
Book value (period end) $23.80 $22.83 4.25%
Tangible book value (period end) (1) $13.17 $12.09 8.93%
Average common shares outstanding -
basic 26,629,360 26,586,953 0.16% 26,614,697 26,579,735 0.13%
Average common shares outstanding -
diluted 26,629,688 26,587,471 0.16% 26,615,281 26,580,293 0.13%
Period end common shares outstanding 26,629,360 26,586,953 0.16% 26,629,360 26,586,953 0.16%
(1) See non-GAAP financial measures for additional information relating to the calculation of this item.
WESBANCO, INC.
Consolidated Selected Financial Highlights
------------------------------------------
(unaudited, dollars in thousands)
Selected ratios
---------------
For the Year Ended
December 31,
------------
2011 2010 % Change
---- ---- --------
Return on average assets 0.81% 0.66% 22.73%
Return on average equity 7.01 5.88 19.22
Return on average tangible
equity (1) 13.32 11.72 13.65
Yield on earning assets
(2) 4.80 5.07 (5.33)
Cost of interest bearing
liabilities 1.32 1.67 (20.96)
Net interest spread (2) 3.48 3.40 2.35
Net interest margin (2) 3.66 3.60 1.67
Efficiency (2) 59.50 60.89 (2.28)
Average loans to average
deposits 76.32 82.14 (7.09)
Annualized net loan
charge-offs/average
loans 1.30 1.28 1.56
Effective income tax rate 18.34 10.89 68.41
For the Quarter Ended
---------------------
Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31,
2011 2011 2011 2011 2010
---- ---- ---- ---- ----
Return on average assets 0.77% 0.80% 0.88% 0.77% 0.76%
Return on average equity 6.61 6.92 7.71 6.81 6.69
Return on average tangible
equity (1) 12.31 13.03 14.73 13.29 13.09
Yield on earning assets (2) 4.61 4.78 4.90 4.92 4.94
Cost of interest bearing
liabilities 1.22 1.28 1.35 1.44 1.48
Net interest spread (2) 3.39 3.50 3.55 3.47 3.46
Net interest margin (2) 3.56 3.67 3.73 3.67 3.66
Efficiency (2) 59.81 56.84 59.79 61.63 60.36
Average loans to average
deposits 74.31 76.55 76.47 78.08 78.69
Annualized net loan charge-
offs/average loans 1.22 2.11 0.85 1.03 0.80
Effective income tax rate 15.42 15.65 23.43 17.74 15.40
Trust Assets, market value at
period end $2,973,352 $2,789,218 $3,029,320 $3,061,907 $2,943,786
(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
------------------------------------------
(unaudited, dollars in thousands, except shares) % Change
Balance sheets December 31, September 30, September 30, 2011
-------------- ------------ ------------- ------------------
to December 31,
Assets 2011 2010 % Change 2011 2011
---- ---- -------- ---- ----------------
Cash and due from banks $129,396 $57,242 126.05% $126,437 2.34%
Due from banks - interest bearing 10,929 21,894 (50.08) 19,081 (42.72)
Securities:
Available-for-sale, at fair value 1,016,340 957,481 6.15 952,065 6.75
Held-to-maturity (fair values of
$621,472; $465,902 and $631,405,
respectively) 592,925 468,710 26.50 604,994 (1.99)
-------
Total securities 1,609,265 1,426,191 12.84 1,557,059 3.35
--------- --------- ----- --------- ----
Loans held for sale 6,084 10,800 (43.67) 8,139 (25.25)
----- ------ ------ ----- ------
Portfolio Loans:
Commercial real estate 1,685,565 1,757,249 (4.08) 1,697,791 (0.72)
Commercial and industrial 426,315 412,726 3.29 426,165 0.04
Residential real estate 621,383 608,693 2.08 612,647 1.43
Home equity 251,785 249,423 0.95 250,867 0.37
Consumer 254,320 260,585 (2.40) 252,908 0.56
-------
Total portfolio loans, net of unearned income 3,239,368 3,288,676 (1.50) 3,240,378 (0.03)
Allowance for loan losses (54,810) (61,051) 10.22 (55,098) 0.52
------- ------- ----- ------- ----
Net portfolio loans 3,184,558 3,227,625 (1.33) 3,185,280 (0.02)
--------- --------- ----- --------- -----
Premises and equipment, net 82,204 85,928 (4.33) 83,198 (1.19)
Accrued interest receivable 19,268 20,536 (6.17) 20,837 (7.53)
Goodwill and other intangible assets, net 283,150 285,559 (0.84) 283,737 (0.21)
Bank-owned life insurance 110,074 106,502 3.35 109,204 0.80
Other assets 101,102 119,181 (15.17) 109,186 (7.40)
------- ------- ------ ------- -----
Total Assets $5,536,030 $5,361,458 3.26% $5,502,158 0.62%
========== ========== ==== ========== ====
Liabilities
Deposits:
Non-interest bearing demand $705,415 $591,052 19.35% $676,724 4.24%
Interest bearing demand 577,033 481,129 19.93 571,736 0.93
Money market 910,117 854,836 6.47 903,724 0.71
Savings deposits 596,549 530,701 12.41 587,263 1.58
Certificates of deposit 1,604,752 1,714,705 (6.41) 1,616,961 (0.76)
---------
Total deposits 4,393,866 4,172,423 5.31 4,356,408 0.86
--------- --------- ---- --------- ----
Federal Home Loan Bank borrowings 168,186 253,606 (33.68) 176,581 (4.75)
Other short-term borrowings 196,887 187,385 5.07 192,780 2.13
Junior subordinated debt owed to unconsolidated
subsidiary trusts 106,066 106,034 0.03 106,058 0.01
------- ------- ---- ------- ----
Total borrowings 471,139 547,025 (13.87) 475,419 (0.90)
------- ------- ------ ------- -----
Accrued interest payable 4,975 6,559 (24.15) 5,772 (13.81)
Other liabilities 32,260 28,588 12.84 30,157 6.97
----- ----
Total liabilities 4,902,240 4,754,595 3.11 4,867,756 0.71
--------- --------- ---- --------- ----
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;
26,633,848 shares issued; 26,629,360
shares, 26,586,953
shares and 26,629,360 shares outstanding,
respectively 55,487 55,487 - 55,487 -
Capital surplus 191,679 191,987 (0.16) 191,471 0.11
Retained earnings 388,818 361,513 7.55 382,442 1.67
Treasury stock (4,488; 46,895 and 4,488 shares -at
cost, respectively) (96) (1,063) 90.97 (96) -
Accumulated other comprehensive income (902) 131 (788.55) 6,287 (114.35)
Deferred benefits for directors (1,196) (1,192) (0.34) (1,189) (0.59)
----- -----
Total Shareholders' Equity 633,790 606,863 4.44 634,402 (0.10)
------- ------- -------
Total Liabilities and Shareholders' Equity $5,536,030 $5,361,458 3.26% $5,502,158 0.62%
========== ========== ==== ========== ====
WESBANCO, INC.
Consolidated Selected Financial Highlights
------------------------------------------
(unaudited, dollars in thousands)
Average balance sheet and net interest margin analysis
------------------------------------------------------
Three Months Ended December 31, Year Ended December 31,
------------------------------- -----------------------
2011 2010 2011 2010
---- ---- ---- ----
Average Average Average Average Average Average Average Average
Assets Balance Rate Balance Rate Balance Rate Balance Rate
------- ---- ------- ---- ------- ---- ------- ----
Due from banks - interest bearing $53,005 0.25% $44,325 0.31% $48,723 0.21% $82,380 0.24%
Loans, net of unearned income (1) 3,237,808 5.24% 3,300,182 5.57% 3,256,887 5.40% 3,385,928 5.59%
Securities: (2)
Taxable 1,246,971 2.84% 1,117,493 3.07% 1,179,458 3.06% 1,015,643 3.48%
Tax-exempt (3) 305,129 6.17% 275,560 6.25% 299,357 6.22% 270,759 6.48%
------- ---- ------- ---- ------- ---- ------- ----
Total securities 1,552,100 3.50% 1,393,053 3.70% 1,478,815 3.70% 1,286,402 4.11%
Other earning assets 22,899 0.33% 29,000 0.44% 25,030 0.42% 29,838 0.56%
------ ---- ------ ---- ------ ---- ------ ----
Total earning assets (3) 4,865,812 4.61% 4,766,560 4.94% 4,809,455 4.80% 4,784,548 5.07%
--------- ---- --------- ---- --------- ---- --------- ----
Other assets 647,999 628,277 630,788 631,922
------- ------- ------- -------
Total Assets $5,513,811 $5,394,837 $5,440,243 $5,416,470
========== ========== ========== ==========
Liabilities and Shareholders' Equity
Interest bearing demand deposits $577,644 0.29% $495,920 0.49% $528,109 0.34% $474,979 0.54%
Money market accounts 900,494 0.52% 854,250 0.73% 892,493 0.58% 817,272 0.92%
Savings deposits 588,799 0.23% 522,823 0.37% 570,093 0.26% 512,289 0.44%
Certificates of deposit 1,609,711 1.81% 1,729,554 1.95% 1,636,753 1.90% 1,754,805 2.10%
--------- ---- --------- ---- --------- ---- --------- ----
Total interest bearing deposits 3,676,648 1.00% 3,602,547 1.23% 3,627,448 1.09% 3,559,345 1.38%
Federal Home Loan Bank borrowings 172,609 3.35% 257,323 3.46% 210,506 3.42% 359,010 3.54%
Other borrowings 204,311 2.39% 189,778 2.54% 194,768 2.48% 183,542 2.60%
Junior subordinated debt 106,062 3.14% 106,031 3.06% 106,050 3.07% 109,552 3.46%
------- ---- ------- ---- ------- ---- ------- ----
Total interest bearing liabilities 4,159,630 1.22% 4,155,679 1.48% 4,138,772 1.32% 4,211,449 1.67%
--------- ---- --------- ---- --------- ---- --------- ----
Non-interest bearing demand deposits 680,637 591,612 639,837 562,763
Other liabilities 34,888 36,049 36,573 36,516
Shareholders' equity 638,656 611,497 625,061 605,742
------- ------- ------- -------
Total Liabilities and Shareholders' Equity $5,513,811 $5,394,837 $5,440,243 $5,416,470
========== ========== ========== ==========
Taxable equivalent net interest spread 3.39% 3.46% 3.48% 3.40%
==== ==== ==== ====
Taxable equivalent net interest margin 3.56% 3.66% 3.66% 3.60%
==== ==== ==== ====
(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 $0.9 million and $1.0 million for the three months ended December 31, 2011 and 2010,
and $4.3 million and $4.2 million for the year ended December 31, 2011 and 2010, 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 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 2011 2011 2011 2011 2010
---- ---- ---- ---- ----
Loans, including fees $42,767 $44,191 $44,511 $44,348 $46,341
Interest and dividends on securities:
Taxable 8,862 9,032 9,431 8,708 8,589
Tax-exempt 3,059 3,019 3,046 2,986 2,799
Total interest and dividends on
securities 11,921 12,051 12,477 11,694 11,388
------ ------ ------ ------ ------
Other interest income 52 45 54 56 66
Total interest and dividend income 54,740 56,287 57,042 56,098 57,795
Interest Expense
Interest bearing demand deposits 416 394 501 503 610
Money market deposits 1,179 1,189 1,208 1,572 1,581
Savings deposits 337 332 349 488 484
Certificates of deposit 7,347 7,728 7,929 8,050 8,518
Total interest expense on deposits 9,279 9,643 9,987 10,613 11,193
Federal Home Loan Bank borrowings 1,456 1,714 2,003 2,026 2,244
Other short-term borrowings 1,232 1,220 1,188 1,182 1,214
Junior subordinated debt owed to
unconsolidated subsidiary trusts 839 809 811 801 818
--- --- --- --- ---
Total interest expense 12,806 13,386 13,989 14,622 15,469
Net interest income 41,934 42,901 43,053 41,476 42,326
Provision for credit losses 9,631 10,836 6,802 8,041 9,625
Net interest income after provision
for credit losses 32,303 32,065 36,251 33,435 32,701
------ ------ ------ ------ ------
Non-interest income
Trust fees 4,198 3,941 4,272 4,762 4,377
Service charges on deposits 4,638 4,881 4,889 4,222 4,731
Electronic banking fees 2,603 2,679 2,523 2,284 2,147
Net securities brokerage revenue 1,048 1,182 1,088 1,096 922
Bank-owned life insurance 864 908 900 895 1,716
Net gains on sales of mortgage loans 679 327 389 582 806
Net securities gains 865 67 14 17 78
Net loss on other real estate owned
and other assets (312) (162) (271) (545) (629)
Other income 1,185 776 1,212 1,191 849
----- --- ----- ----- ---
Total non-interest income 15,768 14,599 15,016 14,504 14,997
------ ------ ------ ------ ------
Non-interest expense
Salaries and wages 14,433 14,227 13,800 13,585 14,127
Employee benefits 4,656 3,662 4,408 5,224 4,299
Net occupancy 2,805 3,068 2,461 2,921 2,595
Equipment 2,193 2,107 2,145 2,300 2,475
Marketing 1,281 1,214 1,642 1,005 1,179
FDIC insurance 1,008 1,091 1,015 1,654 1,653
Amortization of intangible assets 588 599 605 618 669
Other operating expenses 8,530 7,639 9,627 8,184 8,514
----- ----- ----- ----- -----
Total non-interest expense 35,494 33,607 35,703 35,491 35,511
------ ------ ------ ------ ------
Income before provision for income
taxes 12,577 13,057 15,564 12,448 12,187
Provision for income taxes 1,940 2,044 3,646 2,208 1,877
Net income $10,637 $11,013 $11,918 $10,240 $10,310
======= ======= ======= ======= =======
Taxable equivalent net interest income $43,581 $44,526 $44,693 $43,084 $43,833
Per common share data
---------------------
Net income per common share - basic $0.40 $0.41 $0.45 $0.39 $0.39
Net income per common share - diluted $0.40 $0.41 $0.45 $0.39 $0.39
Dividends declared $0.16 $0.16 $0.15 $0.15 $0.14
Book value (period end) $23.80 $23.82 $23.40 $23.01 $22.83
Tangible book value (period end) (1) $13.17 $13.17 $12.72 $12.30 $12.09
Average common shares outstanding -
basic 26,629,360 26,629,360 26,610,450 26,589,013 26,586,953
Average common shares outstanding -
diluted 26,629,688 26,629,543 26,611,409 26,590,410 26,587,471
Period end common shares outstanding 26,629,360 26,629,360 26,629,360 26,593,510 26,586,953
Full time equivalent employees 1,368 1,377 1,406 1,376 1,377
(1) See non-GAAP financial measures for additional information relating to the calculation of this item.
WESBANCO, INC.
Consolidated Selected Financial Highlights
------------------------------------------
(unaudited, dollars in
thousands)
Quarter Ended
-------------
Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31,
Asset quality data 2011 2011 2011 2011 2010
------------------ ---- ---- ---- ---- ----
Past due loans - accruing:
Loans past due 30-89 days $19,888 $23,658 $19,047 $22,367 $24,774
Loans past due 90 days or
more 5,135 6,401 6,732 4,869 7,683
----- ----- ----- ----- -----
Total past due loans $25,023 $30,059 $25,779 $27,236 $32,457
======= ======= ======= ======= =======
Non-performing assets:
Troubled debt
restructurings (1) $29,411 $27,416 $36,437 $36,636 $47,483
Non-accrual loans:
Troubled debt
restructurings on non-
accrual 17,287 16,312 17,632 13,153 9,864
Other non-accrual loans 40,205 40,505 44,409 46,418 38,956
------ ------ ------ ------ ------
Total non-accrual loans 57,492 56,817 62,041 59,571 48,820
------ ------ ------ ------ ------
Total non-performing
loans 86,903 84,233 98,478 96,207 96,303
------ ------ ------ ------ ------
Other real estate and
repossessed assets 3,029 4,687 5,012 5,554 8,069
----- ----- ----- ----- -----
Total non-performing
assets $89,932 $88,920 $103,490 $101,761 $104,372
======= ======= ======== ======== ========
Criticized and classified
loans:
Criticized loans $141,195 $147,572 $169,162 $172,760 $179,905
Classified loans 116,973 123,102 136,583 136,807 140,311
------- ------- ------- ------- -------
Total criticized and
classified loans $258,168 $270,674 $305,745 $309,567 $320,216
======== ======== ======== ======== ========
Loans past due 30-89 days
/total loans 0.61% 0.73% 0.58% 0.69% 0.75%
Loans past due 90 days or
more /total loans 0.16 0.20 0.21 0.15 0.23
Non-performing loans /
total loans 2.68 2.60 3.02 2.97 2.93
Non-performing assets/
total loans, other
real estate and
repossessed assets 2.77 2.74 3.17 3.13 3.17
Criticized and classified
loans /total loans 7.97 8.35 9.37 9.54 9.74
Allowance for loan losses
-------------------------
Allowance for loan losses $54,810 $55,098 $61,418 $61,440 $61,051
Provision for credit
losses 9,631 10,836 6,802 8,041 9,625
Net loan and deposit
account overdraft charge-
offs 9,921 17,392 6,877 8,298 6,641
Annualized net loan
charge-offs /average
loans 1.22% 2.11% 0.85% 1.03% 0.80%
Allowance for loan losses/
total loans 1.69% 1.70% 1.88% 1.89% 1.86%
Allowance for loan losses/
non-performing loans 0.63 x 0.65 x 0.62 x 0.64 x 0.63 x
Allowance for loan losses/non-
performing loans and
loans past due 0.49 x 0.48 x 0.49 x 0.50 x 0.47 x
Quarter Ended
-------------
Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31,
2011 2011 2011 2011 2010
---- ---- ---- ---- ----
Capital ratios
--------------
Tier I leverage capital 8.71% 8.69% 8.59% 8.53% 8.35%
Tier I risk-based capital 13.06 12.49 12.35 12.23 11.94
Total risk-based capital 14.32 13.74 13.61 13.48 13.20
Average shareholders'
equity to average assets 11.58 11.57 11.42 11.37 11.33
Tangible equity to
tangible assets (2) 6.68 6.72 6.59 6.43 6.33
(1) Balances include troubled debt restructurings that are accruing interest. Troubled
debt restructurings not accruing interest are included in non-accrual loans.
(2) See non-GAAP financial measures for additional information relating to the
calculation of this item.
NON-GAAP FINANCIAL 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 thousands) 2011 2011 2011 2011 2010 2011 2010
---- ---- ---- ---- ---- ---- ----
Return on average tangible equity:
Net income (annualized) $42,201 $43,694 $47,805 $41,531 $40,903 $43,809 $35,611
Plus: amortization of intangibles
(annualized) (1) 1,516 1,545 1,577 1,629 1,724 1,566 1,774
----- ----- ----- ----- ----- ----- -----
Net income before amortization of
intangibles (annualized) 43,717 45,239 49,382 43,159 42,627 45,375 37,385
------ ------ ------ ------ ------ ------ ------
Average total shareholders' equity 638,656 631,174 619,954 610,077 611,497 625,061 605,742
Less: average goodwill and other
intangibles (283,406) (284,003) (284,611) (285,219) (285,860) (284,304) (286,875)
-------- -------- -------- -------- -------- -------- --------
Average tangible equity 355,250 347,171 335,343 324,858 325,637 340,757 318,867
------- ------- ------- ------- -------
Return on average tangible equity 12.31% 13.03% 14.73% 13.29% 13.09% 13.32% 11.72%
===== ===== ===== ===== ===== ===== =====
Period End
----------
Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31,
2011 2011 2011 2011 2010
---- ---- ---- ---- ----
Tangible book value:
Total shareholders' equity $633,790 $634,402 $623,037 $611,978 $606,863
Less: goodwill and other intangible
assets (283,150) (283,737) (284,336) (284,941) (285,559)
-------- -------- -------- -------- --------
Tangible equity 350,640 350,665 338,701 327,037 321,304
Common shares outstanding 26,629,360 26,629,360 26,629,360 26,593,510 26,586,953
---------- ---------- ---------- ---------- ----------
Tangible
book
value $13.17 $13.17 $12.72 $12.30 $12.09
====== ====== ====== ====== ======
Tangible equity to tangible assets:
Total shareholders' equity $633,790 $634,402 $623,037 $611,978 $606,863
Less: goodwill and other intangible
assets (283,150) (283,737) (284,336) (284,941) (285,559)
-------- -------- -------- -------- --------
Tangible equity 350,640 350,665 338,701 327,037 321,304
Total
assets 5,536,030 5,502,158 5,425,907 5,368,852 5,361,458
Less: goodwill and other intangible
assets (283,150) (283,737) (284,336) (284,941) (285,559)
-------- -------- -------- -------- --------
Tangible assets 5,252,880 5,218,421 5,141,571 5,083,911 5,075,899
--------- --------- --------- --------- ---------
Tangible equity to tangible assets 6.68% 6.72% 6.59% 6.43% 6.33%
==== ==== ==== ==== ====
(1) Tax effected at 35%.
SOURCE WesBanco, Inc.
