Wesbanco, Inc. · NASDAQ:WSBC

Wesbanco — Keefe, Bruyette & Woods One-on-One Southeast Bank Mini Conference 2013

33 slides from Wesbanco's conference presentation, Jun 4, 2013

  1. Slide 1: KBW One-on-One Southeast Bank Mini Conference

    Keefe, Bruyette & Woods One-on-One Southeast Bank Mini Conference Greenbrier Resort, West Virginia June 5th – 6th, 2013

  2. Slide 2: 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

  3. Slide 3: WesBanco company overview

     Headquarters in Wheeling, West Virginia  Assets: $6.1 billion  Founded in 1870  33 banks/24 companies acquired in 25 years  Banking operations in West Virginia, Ohio and Western Pennsylvania  118 banking offices + Pittsburgh Business Loan Office  106 ATM’s  Wealth management, securities bro

  4. Slide 4: Executive management

    Years in Years with Executive Position Banking WSBC James Gardill Chairman of the Board 40* 40 Paul Limbert President & CEO 35 35 Robert Young EVP & CFO 26 11 Peter Jaworski EVP & Chief Credit Officer 28 17 Jonathan Dargusch EVP – Trust & Investments 31 2 Bernard Twigg EVP – Chief Lending Officer 28

  5. Slide 5: 2012 highlights and Fidelity Bancorp acquisition

     Increased dividends to shareholders 5 times in last 9 quarters representing a 36.0% increase.  Continued growth in deposits and loans.  Strong loan origination focus.  Deposits have been impacted by Marcellus and Utica shale payments.  Acquired Fidelity Bancorp.  Opens new markets in Pittsbur

  6. Slide 6: Earnings, credit quality and branch restructuring

     Continued growth in earnings and improved credit quality.  Formed a private banking team to coordinate delivery of special service products.  Continued control of expenses.  Continued restructuring of branch offices.  Closed 6 branches.  Will open 3 new branches in 2013.  Maintained strong c

  7. Slide 7: An Expanding Franchise in Contiguous Markets

    An Expanding Franchise in Contiguous Markets: 118 banking offices Pennsylvania Ohio Pittsburgh Columbus Wheeling Parkersburg Morgantown Cincinnati Jackson Charleston West Virginia

  8. Slide 8: Western Pennsylvania growth plan with Fidelity

     With Fidelity we have 15 offices and a loan production office in Western PA.  Build upon community bank reputation of Fidelity.  Operate as a separate market with a market president.  Expect to grow to $1 billion in loans in next few years.  Add revenue generating staff – reducing back office.

  9. Slide 9: Targeted M&A opportunities

     History of successful consolidations.  WesBanco is focused on targeted M & A opportunities in its higher growth metro markets within our market areas.  Management, technology/ back office and capital/ liquidity strength to compete for deals of interest.  Current stock valuation provides for ups

  10. Slide 10: Marcellus/Utica Shale Opportunities for Organic Growth

    West Virginia and Ohio Marcellus/Utica Shale Opportunities for Organic Growth Marcellus Shale Regional Coverage Land owners are finding new wealth. Large cash payments for drilling rights. Land owners need financial advice. Our products in the retail bank provide short-term solutions. Our produ

  11. Slide 11: Trust and securities assets under management

     $3.5B of assets under management/custody.  Over 5,000 trust relationships.  Combined Trust and Securities under one management team. Assets Under Management ($B) Management Fees ($MM)  10 locations in WV, OH & PA. Net Securities Brokerage Revenue ($MM)  Improving performance as asset values ha

  12. Slide 12: First quarter 2013 financial results

    Quarter Quarter ($ in thousands, except diluted earnings per share)00’s Ended March Ended March except per share data) 2013 2012 % Change Net Income $16,021 $11,990 33.6% Diluted Earnings Per Share $ 0.55 $ 0.45 22.2% Provision for Credit Losses $2,102 $6,202 (66.1%) Return on Average Assets 1.07% 0

  13. Slide 13: Total risk based capital and tangible equity

    Total Risk Based Capital Tangible Equity to Tangible Assets * 16.00% 14.14% 14.36% 14.45% 14.07% 14.13% 14.00% 12.00% 10.00% 8.00% 6.76% 7.00% 7.13% 6.97% 6.77% 6.00% 4.00% 2.00% 0.00% 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 *See non-GAAP measures for additional information relating to the calculation of this

  14. Slide 14: Loan, deposit and capital growth

    $ 850 750 650 550 450 350 250 150 50 (50) 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 Loan Growth Deposit Growth Capital Growth 14 *11/30/12 acquisition of Fidelity Bancorp.

  15. Slide 15: Securities portfolio

    Securities = $1.59 B  Average tax-equivalent ~26.1% of total assets portfolio yield of 3.17% at US Govt. 3/31/13. Agencies  WAL approx. 4.6 years; 4.1% modified duration 3.9%.  Over 55% unpledged. Municipals,  Sold approx. 60% or $130 Agency 37.7% million of Fidelity Mortgage- portfolio includin

  16. Slide 16: Total portfolio loans

    3/31/13 Total Portfolio Loans = $3.70 B Comm. Real Estate = Comm. & $1.83 B Ind., 13.4% LHFS, 0.4% Const & Dev. Consumer, 10.1% 7.3% Comm. Investor- HELOC, Real owned 7.5% Estate, 60.9% 49.5% Res. Real Owner- Estate, occupied 21.9% 29.0% 16

  17. Slide 17: Non-interest income

    Other Inc. Insurance  Non-interest income contributed Securities brokerage Trust 28% of net revenue for the 1Q Service charges & Fees 2013. ($MM)  Non-bank offerings (trust, $71.1 $60.4 $60.2 $62.6 insurance, securities) contributed $59.3 $7.3 million to 1Q 2013 revenue.  Securities brokerage rev

  18. Slide 18: Peer Group – Price / 2013 Estimated Earnings

    Peer Group – Price / 2013 Estimated Earnings Price / 2013 Estimated Earnings (x) (1) 18.0x Median (Excl. WSBC): 13.4x 16.0x 15.5x 14.8x 14.7x 13.9x 13.9x 14.0x 13.8x 13.5x 13.3x 12.9x 12.8x 12.5x 12.0x 11.9x 11.8x 12.0x 10.0x 8.0x 6.0x FCF FFBC UBSI National PRK FNB ONB CHCO STBA FRME MSFG CTBI PEBO

  19. Slide 19: Peer Group – Price / 2014 Estimated Earnings

    Peer Group – Price / 2014 Estimated Earnings Price / 2014 Estimated Earnings (x) (1) Median (Excl. WSBC): 12.7x 16.0x 14.2x 14.1x 13.9x 14.0x 13.4x 13.1x 13.1x 12.7x 12.7x 12.6x 12.0x 12.0x 11.7x 11.6x 11.5x 11.4x 10.0x 8.0x 6.0x FFBC FCF UBSI PRK National STBA FNB CHCO ONB CTBI PEBO MSFG WSBC FRME

  20. Slide 20: Current Market Update: Cycle-to-Date

    Current Market Update Market Performance – Cycle-to-Date 125.00% 100.00% 75.00% 50.00% 25.00% 0.00% 6/30/07 12/19/08 6/15/10 12/7/11 5/31/13 S&P 500 Index (8.47%) WSBC (-15.08%) KBW Regional Banking Index (-32.70%) KBW Bank Index (-45.43%) 20 Source: FactSet Research System.

  21. Slide 21: Current Market Update: Since January 1, 2010

    Current Market Update Market Performance – Since January 1, 2010 225.00% 200.00% 175.00% 150.00% 125.00% 100.00% 75.00% 50.00% 1/1/10 11/8/10 9/16/11 7/23/12 5/31/13 WSBC (103.00%) S&P 500 Index (46.24%) KBW Bank Index (44.23%) KBW Regional Banking Index (37.92%) 21 Source: FactSet Research System.

  22. Slide 22: Interest Rate Sensitivity

    Interest Rate Sensitivity % Change in Net Interest Income from Base Over One Immediate Change in Interest Rates Year Mar. 31, 2013 Up 1% Rate Shock +2.2% Up 2% Rate Shock +2.6% Up 3% Rate Shock +1.6% Up 2% Rate Ramp +1.7% Down 1% Rate Shock -2.2% EVE Up 2% Rate Ramp +8.5% EVE Down 1% Rate Ramp -0.1%

  23. Slide 23: Investment highlights

     Strong regulatory capital.  Proven acquisition-oriented growth strategy.  Liquidity to provide for additional lending capacity.  Asset quality compares favorably with regional and national peers.  Diversity of earnings stream.  Potential upside market appreciation. 23

  24. Slide 24: Appendix

    24 Appendix By all accounts, better.

  25. Slide 25: NPAs and criticized & classified loans

    10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 NPA's as a % of total Loans Criticized & Classified Loans as a % of total Loans 25

  26. Slide 26: Allowance and non-performing loans

    3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 ALL as % of total Loans Non Performing Loans as a % of total Loans 26

  27. Slide 27: Total bank loans by market

    ) March 31, 2013 Commercial Retail Total % of Total Loans Upper Ohio Valley $ 496 $ 431 $ 927 25% North Central WV 259 203 462 12% Parkersburg 165 82 247 7% Kanawha Valley 66 55 121 3% Western PA 329 167 496 13% Total East Markets $ 1,315 $ 938 $ 2,253 60% Central Ohio 550 118 668 19% Southwest Ohio

  28. Slide 28: Non-performing assets by market

    March 31, 2013 90 Day PD Non- TDR Other RE Total by % of Total & Accruing Accrual Owned Region Upper Ohio Valley $ 640 $ 4,509 $ 3,855 $ 45 $9,049 12% North Central WV 417 2,119 2,770 ---- 5,306 7% Parkersburg 12 1,598 1,681 94 3,385 5% Kanawha Valley ---- 2,280 394 ---- 2,674 4% Western PA 894 4,37

  29. Slide 29: Efficiency ratio reconciliation

    ($ in thousands, except per share data) 3/31/13 3/31/12 Non-interest expense $ 40,747 $ 35,665 Less: restructuring and merger related expense 1,178 --- Non-interest expense excluding restructuring and merger related expense $ 39,569 $35,665 Net Interest income (on a fully taxable equivalent basis) $

  30. Slide 30: Tangible equity to tangible assets reconciliation

    ($ in thousands) 1Q’12 2Q’12 3Q’12 4Q’12 1Q’13 Total shareholder’s equity $ 642,001 $ 649,112 $ 659,322 $ 714,184 $ 724,409 Less: goodwill & other intangible assets (282,612) (282,088) (281,570) (324,465) (323,003) Tangible equity $ 359,389 $ 367,024 $ 377,752 $ 389,719 $ 401,406 Total assets $5,600

  31. Slide 31: Operating non-interest income reconciliation

    ($ in thousands) 2009 2010 2011 2012 2013* Non-interest Income $ 64,589 $ 59,599 $ 59,888 $ 64,775 $ 70,956 Less: Net Securities gains 6,046 3,362 963 2,463 65 Less: net gains/losses on other real estate owned and other assets (747) (4,128) (1,290) (305) (187) Net operating non-interest income $ 59,

  32. Slide 32: Return on average tangible equity reconciliation

    ($ in thousands) 3/31/12 YTD 3/31/13 YTD Net income* $ 48,223 $ 64,974 Plus: amortization of intangibles* 1,405 1,647 Net income before amortization of intangibles* $ 49,628 $ 66,621 Average total shareholders’ equity $ 639,180 $ 722,211 Less: average goodwill & other intangibles (282,849) (323,662)

  33. Slide 33: WesBanco

    33 WesBanco By all accounts, better.

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