Wesbanco, Inc. · NASDAQ:WSBC

Wesbanco — FBR Rail Investor Conference (November 2011)

36 slides from Wesbanco's conference presentation, Nov 28, 2011

  1. Slide 1: WesBanco – By all accounts, better

    WwW WesBanco By all accounts, better. FBR Rall investor New York, NY November 29, 2011

  2. Slide 2: Forward-looking statements

    Forward-looking statements in this presentation 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 herein should b

  3. Slide 3: WesBanco at a glance

     Headquarters in Wheeling, West Virginia  Assets: $5.5 billion  Founded in 1870  32 banks/23 companies acquired in 25 years  Banking operations in West Virginia, Ohio and Western Pennsylvania  112 banking offices + Pittsburgh Business Loan Office  123 ATM’s  Non-bank activities include:  We

  4. Slide 4: An Expanding Franchise in Contiguous Markets

    An Expanding Franchise in Contiguous Markets: 112 banking offices  Ranked #1-3 in deposit market share in 15 counties out of 37* Columbus Springfield Wheeling  Expanding along major highways to Dayton population centers (Columbus, Dayton, Cincinnati) Huntington  Organized into seven markets * SNL

  5. Slide 5: Return on Average Assets

    Return on Average Assets 2.00% 1.80% 1.86% 1.60% 1.71% 1.77% 1.67% 1.67% 1.40% 1.20% 1.00% 0.80% 0.88% 0.76% 0.77% 0.80% 0.60% 0.67% 0.40% 0.20% 0.00% 3Q-10 4Q-10 1Q-11 2Q-11 3Q-11 ROAA: Pre-tax, Pre-provision ROAA: GAAP

  6. Slide 6: Summary – Capital Ratios %

    Summary – Capital Ratios % Total Risk Based Capital Tangible Equity to Tangible Assets * 13.20% 13.61% 13.74% 14.00% 12.89% 13.48% 12.00% 10.00% 8.00% 6.33% 6.72% 6.34% 6.43% 6.59% 6.00% 4.00% 2.00% 0.00% 3Q'10 4Q'10 1Q'11 2Q'11 3Q'11 *See non-GAAP measures for additional information relating to the

  7. Slide 7: Recent Accomplishments

    Recent Accomplishments  Increased dividends to shareholders in 1Q’11 and in 3Q’11 by 14.3% in total.  Growth in tangible capital and regulatory capital ratios through growth in retained earnings.  Remained profitable each quarter throughout recession.  Purchased five branches with $600 million i

  8. Slide 8: Growth by Acquisition: A WSBC Core Competency

    Growth by Acquisition: A WSBC Core Competency ($ in billions) (MM) $6.0  Focused on higher growth 7.5 year Asset Growth metro markets and $5.0 CAGR = 11.8% enhancing market share.  Five acquisitions in nine $4.0 years – assets more than doubled since the $3.0 beginning of 2002.  A history of succ

  9. Slide 9: Targeted M&A

    Targeted M&A  WesBanco is focused on targeted M & A opportunities in its market areas.  Limited FDIC-assisted transactions expected, but plenty of moderately distressed banks and “tired” management teams.  Management, technology/back office and capital/liquidity strength to compete for deals of i

  10. Slide 10: Wealth Management Services

    Wealth Management Services  $2.8B of assets under management/custody.  Over 5,000 trust relationships.  4 locations in WV & OH  Improving performance as Assets Under Management ($B) Management Fees ($MM) asset values have grown.  Product capabilities: $17.3 $16.2 $15.8  Trust $14.9 $13.7  Inv

  11. Slide 11: Economic Benefits of WV

    Economic Benefits of WV WV reported a surplus of revenue over expense for the latest fiscal year. State of WV has implemented legislation to reduce Business Franchise and Corporate Net Income Taxes. WV generated 8% higher revenues in 2011 and GDP rose by 4% vs. the 2.6% national average. WV repo

  12. Slide 12: Marcellus Shale Play

    Marcellus Shale Play  Area five time as large as Barnett Shale – primarily in WV & PA, parts of NY & OH.  WVU study suggests 43k- 83k jobs created by Marcellus drilling activity by 2015.  Total estimated economic activity by 2020 - $3B.  WSBC in 10 out of 32 counties in WV with activity.  Top 5

  13. Slide 13: 2011 Business Initiatives

    2011 Business Initiatives  Actively remix the balance sheet – loans & deposits - to improve revenue, interest rate sensitivity, regulatory capital and profitability.  Continuing efforts to address credit quality and impaired loan levels as economy improves.  Focus on organic loan growth, with an

  14. Slide 14: Peer Group – Price / 2012 Estimated Earnings

    Peer Group – Price / 2012 Estimated Earnings Price / 2012 Estimated Earnings (x) (1) Median (Excl. WSBC): 12.1x 14.0x 13.5x 13.0x 13.0x 12.9x 12.9x 12.4x 12.3x 12.2x 12.0x 11.8x 11.1x 11.0x 11.0x 10.7x 10.4x 10.3x 10.0x 9.1x 9.0x 8.0x 7.0x 6.0x UBSI PRK FNB FFBC STBA CHCO National PEBO CTBI ONB FCF

  15. Slide 15: 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 8/1/08 9/8/09 10/13/10 11/18/11 WesBanco, Inc. (-33.73%) KBW Bank Index (-66.76%) KBW Regional Banking Index (-49.49%) S&P 500 Index (-19.14%) Source: FactSet Research Systems 15

  16. Slide 16: Current Market Update – Since January 1, 2010

    Current Market Update Market Performance – Since January 1, 2010 180.00% 160.00% 140.00% 120.00% 100.00% 80.00% 60.00% 1/1/10 6/21/10 12/10/10 5/30/11 11/18/11 WesBanco, Inc. (58.43%) KBW Bank Index (-12.15%) KBW Regional Banking Index (3.50%) S&P 500 Index (9.02%) Source: FactSet Research Systems 1

  17. Slide 17: Quarterly Performance Comparison

    Quarterly Performance Comparison ($ in thousands, except diluted earnings per share)00’s except per share data) Sep 2011 Jun 2011 Mar 2011 Dec 2010 Sep 2010 Net Income $11,013 $11,918 $10,240 $10,310 $9,153 Diluted Earnings Per Share $ 0.41 $ 0.45 $ 0.39 $ 0.39 $ 0.34 Provision for Credit Losses $10

  18. Slide 18: Securities Portfolio – Quality & Liquidity

    Securities Portfolio – Quality & Liquidity Securities = $1.56 B  Average tax-equivalent ~28.3% of total assets portfolio yield of 3.69% at 9/30/11. US Govt.  WAL approx. 5.4 years; Agencies modified duration 4.1%. Agency 17.7%  Over 53% unpledged. Mortgage-  No significant private Backed & label

  19. Slide 19: Municipal Bond Portfolio Characteristics

    Municipal Bond Portfolio Characteristics  Portfolio comprised of $511 million of tax exempts and taxable Build America Bonds.  Approximately 89% are local issuers.  G.O.’s are 73% of total; 27% revenue bonds.  96% rated, with 80% rated AA (or its equivalent) or higher. Only 5.0% below A – all ar

  20. Slide 20: Diversified Loan Portfolio

    Diversified Loan Portfolio Total Portfolio Loans = $3.25 B Comm. Real Estate = Comm. & $1.70 B Ind., 13% LHFS, 0.3% Const & Dev. Consumer, 11% 8% Comm. Investor- HELOC, 8% Real owned Estate, 56% 52% Res. Real Owner- Estate, 19% occupied 33%

  21. Slide 21: Non-Accrual & Restructured Loans

    Non-Accrual & Restructured Loans ($ in thousands) $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 2Q'10 3Q'10 4Q'10 1Q'11 2Q'11 3Q'11 Non-Accrual TDR's Accruing interest

  22. Slide 22: Net Charge-Offs vs. Provision for Loan Losses

    Net Charge-Offs vs. Provision for Loan Losses ($ in thousands) $20,000 $17,500 $15,000 $12,500 $10,000 $7,500 $5,000 $2,500 $0 4Q'09 1Q'10 2Q'10 3Q'10 4Q'10 1Q'11 2Q'11 3Q'11 Net Charge-Offs Provision for Loan Losses

  23. Slide 23: Annualized Net Loan Charge-offs

    Annualized Net Loan Charge-offs Average Loans WSBC National Peers* 1.96% 2.02% 2.11% 1.71% 1.74% 1.35% 2.09% 1.01% 1.42% 1.03% 0.85% 0.80% 2Q'10 3Q'10 4Q'10 1Q'11 2Q'11 3Q'11 • National Peer Group = Average of 92 of 93 banks nationwide with assets between $2-$10 B. • Source: SNL Financial

  24. Slide 24: NPA + ≥ 90 PD Loans

    NPA + ≥ 90 PD Loans Total Loans + OREO WSBC National Peers* 5.57% 5.63% 5.48% 5.44% 5.33% 5.21% 3.40% 3.16% 3.28% 3.37% 3.10% 2.94% 2Q'10 3Q'10 4Q'10 1Q'11 2Q'11 3Q'11 • National Peer Group = Average of 80 of 93 banks nationwide with assets between $2-$10 B. • Source: SNL Financial

  25. Slide 25: Net Interest Margin & Efficiency Ratio

    Net Interest Margin & Efficiency Ratio Net Interest Margin Efficiency Ratio 3.80% 70.00% 3.70% Net Interest Margin 68.00% Efficiency Ratio 3.60% 66.00% 3.50% 64.00% 3.40% 62.00% 3.30% 3.20% 60.00% 3.10% 58.00% 3.00% 56.00% 2Q'09 3Q'09 4Q'09 1Q'10 2Q'10 3Q'10 4Q'10 1Q'11 2Q'11 3Q'11

  26. Slide 26: Diversified Operating Non-interest Income

    Diversified Operating Non-interest Income* Other Inc. Insurance Securities brokerage Trust  Non-interest income Service charges & Fees contributed 26% of 2011 YTD ($MM) net revenue. $60.4 $60.2 $57.5 $59.3  Non-bank offerings (trust, $50.7 insurance, securities) contributed $18.1 million in YTD 20

  27. Slide 27: Interest Rate Sensitivity

    Interest Rate Sensitivity % Change in Net Interest Income from Immediate Change in Base Over One Year Interest Rates Sept. 30, 2011 Dec. 31, 2010 Up 1% Rate Shock +2.2% +2.4% Up 2% Rate Shock +2.0% +1.7% Up 2% Rate Ramp +2.2% +2.3% Down 1% Rate Shock -4.1% -2.9%

  28. Slide 28: Stability, Diversity and Capital Strength

    Stability, Diversity and Capital Strength Financial performance indicates well-managed bank. Strong regulatory capital. Proven acquisition-oriented growth strategy. Excellent liquidity. Asset quality compares favorably with peers. Diverse earnings stream. Potential for improved stock price.

  29. Slide 29: Appendix: Loan Totals by Market

    Appendix: Loan Totals by Market ($ millions) Commercial Retail Total % of Total Loans Upper Ohio Valley $ 457 $ 396 $ 853 26% North Central WV 239 183 422 13% Parkersburg 214 86 300 9% Kanawha Valley 63 39 102 3% Western PA 207 15 222 7% Total East Markets $ 1,180 $ 719 $ 1,899 58% Central Ohio 493

  30. Slide 30: Appendix: Credit Quality By Market

    Appendix: Credit Quality By Market ($ thousands) 90 Day PD Non- TDR Other RE Total by % of Total & Accruing Accrual Owned Region Upper Ohio Valley $ 789 $ 7,243 $ 4,400 $ 790 $13,222 14% North Central WV 679 704 995 81 2,459 2% Parkersburg 665 5,574 1,046 30 7,315 8% Kanawha Valley 130 2,280 N/A 60

  31. Slide 31: Non-GAAP Financial Measures – Tangible equity

    Non-GAAP Financial Measures Tangible equity to tangible assets ($ in thousands) 3Q’10 4Q’10 1Q’11 2Q’11 3Q’11 Total shareholder’s equity $ 608,287 $ 606,863 $ 611,978 $ 623,037 $ 634,402 Less: goodwill & other intangible assets (286,228) (285,559) (284,941) (284,336) (283,737) Tangible equity $ 322,

  32. Slide 32: Non-GAAP Financial Measures – Net Revenue

    Non-GAAP Financial Measures Net Revenue ($ in thousands) 3Q’10 4Q’10 1Q’11 2Q’11 3Q’11 Net Interest income $ 41,986 $ 42,326 $ 41,476 $ 43,053 $ 42,901 Plus: Non-interest income 14,976 14,997 14,504 15,016 14,599 Less: Net securities gains and net gains/losses on other real estate owned and other as

  33. Slide 33: Non-GAAP Financial Measures – Operating non-interest income

    Non-GAAP Financial Measures Operating non-interest income ($ in thousands) 2011 2007 2008 2009 2010 (annualized) Non-interest Income $ 52,939 $ 57,346 $ 64,589 $ 59,599 $ 58,988 Less: Net Securities gains 943 1,556 6,046 3,362 130 Less: net gains/losses on other real estate owned and other assets 1,

  34. Slide 34: Non-GAAP Financial Measures – Return on Average Tangible Equity

    Non-GAAP Financial Measures Return on Average Tangible Equity ($ in thousands) 3Q’10 4Q’10 1Q’11 2Q’11 3Q’11 Net income (annualized) $ 36,313 $ 40,903 $ 41,531 $ 47,805 $ 43,694 Plus: amortization of intangibles (annualized) 1,743 1,724 1,629 1,577 1,545 Net income before amortization of intangibles

  35. Slide 35: Non-GAAP Financial Measures – ROAA Pre-tax, Pre-provision

    Non-GAAP Financial Measures ROAA: Pre-tax, Pre-provision ($ in thousands) 2Q’10 3Q’10 4Q’10 1Q’11 2Q’11 3Q’11 Income before provision for income taxes $ 9,491 $ 9,503 $12,187 $12,448 $15,564 $13,057 Provision for credit losses 11,675 11,778 9,625 8,041 6,802 10,836 Taxable equivalent adjustment 1,53

  36. Slide 36: WesBanco

    W WesBanco By all accounts, better.

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