Wesbanco, Inc. · NASDAQ:WSBC
Wesbanco — Midwest 2008 SuperCommunity Bank Conference
25 slides from Wesbanco's conference presentation, Feb 26, 2008
Slide 1: Midwest 2008 SuperCommunity Bank Conference
WesBanco By all accounts, better. Midwest 2008 SuperCommunity Bank Conference Chicago, IL February 26, 2008
Slide 2: Forward-Looking Statements
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 informatio
Slide 3: Corporate Profile
Corporate Profile = Founded in 1870 in Wheeling, WV " $5.4 billion in assets = Over 30 acquisitions in past 25 years = Three state presence; two bank charters = 116 full-service banking offices, 1 loan production office & 152 ATMs " Securities brokerage, insurance, proprietary mutual fund family
Slide 4: WesBanco Stock Profile
WesBanco Stock Profile ® NASDAQ Global Stock Market: WSBC " Market capitalization: $670 million* = 2007 average daily shares traded: 86,493 = 26.5 million shares; 93% float = 379% institutional ownership * Closing price of $25.24 on 2/20/08.
Slide 5: Wealth Management Profile
Wealth Management Profile =" Market value of trust assets $3.1 billion at 12/31/07. = Currently manage over 5,000 trust relationships. = 76% of trust assets are under management at 12/31/07. = Trust assets increased 3.6% in 2007. = Trust revenue for 2007 totaled $16.2 million, an increase of 7.8% co
Slide 6: Creates a Powerful Community Bank Franchise
Slide 7: Transaction Rationale
‘Transaction Rationale Financially Attractive Top 15 deposit market share in Ohio Connects geographic gap in branch network Doubles presence in growth markets Increased scale enhances lending capabilities Identifiable, achievable cost savings Accretive to GAAP and Cash EPS in 2009 Common community b
Slide 8: Oak Hill Integration
Oak Hill Integration " Completed disposition of $50 million in underperforming loans and REO. " Begin realization of cost savings during the 34 quarter of 2008. = Branch sales progressing and expected to close in April. = Conversion of back-office systems and merger of bank charters are slated for l
Slide 9: Loans & Deposits - In State vs. Out of State
Loans & Deposits - In State vs. Out of State LOANS 12/31/07 DEPOSITS 12/31/07 WV - $1,658 million WYV - $1,951 million Non-WV - $2,103 million Non-WV - $1,956 million
Slide 10: Market Share - State of Ohio
Market Share - State of Ohio Total Total Deposits Market Branch inMarket Share Rank Institution Count (sm) (96) 1 National City Corp. (OH) 418 $ 30,576 14.6% 2 Fifth Third Bancorp (OH) 391 26,345 12.6% 3 Huntington Bancshares, Inc. (OH) 443 24,333 11.6% 4 KeyCorp (OH) 231 18,078 8.7% 5 JPMorgan Chas
Slide 11: 2008 Strategy / Business Plan
2008 Strategy / Business Plan = Challenging economic conditions ahead. =" Monitor for credit deterioration. = Successful integration of Oak Hill Banks. = Focus on balance sheet remix strategy; higher- yielding loan products and non interest-bearing DDA customers. " Concentrate on efficiency ratio by
Slide 12: 2007 YTD Financial Results
2007 YTD Financial Results YTD YTD (dollars in thousands) 12/31/2007 | 12/31/2006 9% CHG Net income $ 44,669) $ 39,035 14.49 EPS - diluted $ 2.09) §$ 1.79 16.8% Return on assets 1.0996 0.949 15.996 Return on tangible equity 16.76% 14.40% 16.496 Net interest margin 3.449 3.499% (1.496)
Slide 13: 2007 Financial Review
2007 Financial Review = Net interest income declined 2.99% due to a lower average balance sheet and a 5 basis point decrease in net interest margin. The margin improved in the 4" quarter. = Provision for credit losses was relatively flat with prior year, as were net charge-offs. = Non-interest incom
Slide 14: Recent Analyst Comments - Fourth Quarter
Recent Analyst Comments - Fourth Quarter “Results beat expectations given lower expense growth and a lower tax rate; however, longer term core earnings power is better than previously expected following the OAKF acquisition.” David Darst, CFA Senior Analyst, FTN Midwest Securities Corp. 14
Slide 15: Recent Analyst Comments - Fourth Quarter
Recent Analyst Comments - Fourth Quarter “On a sequential-quarter-basis, WesBanco’s NIM expanded two basis points to 8.40%. We believe the Oak Hill transaction explains the improvement in NIM. Looking forward, we would expect NIM to remain stable or improve slightly through 2008.” Matthew Schultheis
Slide 16: Composition of Loans
Composition of Loans 12/31/07 12/31/06
Slide 17: Commercial Real Estate
Commercial Real Estate $000s % of % of Category Committed Capital CRE Land & Land Development $110,545 19.1% 5.9% Residential Development 113,992 19.6% 6.1% Commercial Construction 159,064 27.4% 8.5% Total Subject to 100% of Capital Guidelines $ 383,601 66.1% 20.5% Investor Owned CRE: Residential 31
Slide 18: Credit Quality
Credit Quality Inthousands Non-performing Tn thousands Net offs $30,000 assets 0.50% $9,000 0.60% ee $8,000 $25,000 0.45% . O20) $7,000 $20,000 $6,000 0.40% 0.30% $5,000 $15,000 $4,000 0.20% $10,000 $3,000 0.20% 0.10% $2,000 $5,000 $1,000 $0 0.00% $0 0.00% 2003 2004 2005 2006 2007 2003 2004 2005 200
Slide 19: Composition of Securities Portfolio
Composition of Securities Portfolio ¢ No private label CMO’s or ABS securities. *¢ 8596 of municpal bonds are insured; 79% are general obligation bonds. *¢ Selective muni bond sales where no underlying rating for a downgraded bond insurer. WesBanco
Slide 20: GAAP Efficiency vs. Peer
GAAP Efficiency vs. Peer 66% 4 64% 4 63.4% 62% 4 60% 4 58% 4 56% 4 34% 4 54.7% 52% 4 50% T T T T T 1 2002 2003 2004 2005 2006 2007 —k- Wes Banco ~® Peer Median Since 2002, WesBanco has had a better efficiency ratio than its peer median in four of the last six years. Source: SNL Financial Peers inclu
Slide 21: Interest Rate Risk
Interest Rate Risk Change in Interest Rates (basis pts.) Change in Net Interest Income from Base Down 200 Rate Shock. Down 100 Rate Shock Up 200 Rate Ramp Up 100 Rate Shock Up 200 Rate Shock 12/31/2007 12/31/2006 4.52% 2.50% 8.5496 2.80% -38.40% -1.829% -4.979 -38.30% -10.23% -6.70% ¢ Recent A/LM st
Slide 22: Capital Ratios
Capital Ratios Ubi 9.27% 8.76% 8% | 7% 4 6% 5.96% 5% 4 4% 4 3% 2003 2004 2005 2006 2007 -t- Tier I leverage -® Tangible equity to assets
Slide 23: New Markets Tax Credits
New Markets Tax Credits = In 2004, Oak Hill Banks CDC was awarded a $20 million allocation of New Market Tax Credit authority. = In 2007, a new allocation of $40 million of NMTC authority was awarded. = Tax credits total 39% of each allocation and are recognized over a 7-year credit allowance period
Slide 24: WesBanco / Peer Group - Stock Price Performance
WesBanco / Peer Group - Stock Price Performance Total Return Analysis % Peer ‘Wes Banco Median 2002 15.3% 4.7% 2003 22.7% 28.5% 2004 19.6% 14.2% 2005 -1.5% -4.9% 2006 14.2% 8.2% 2007 -86.0% -16.5% 2008 YTD* 24.5% 5.0% '02-'08 YTD* 51.7% 25.4% From 2002 through February 5, 2008 WesBanco has outperfor
Slide 25: Key Investor Messages
Key Investor Messages = “Against the tide” earnings increase in 2007. = Recent stock price rally still leaves opportunity for appreciation as earnings visibility improves post-Oak Hill. = 22 consecutive years of dividend increases; payout ratio ted at. 55% of earnings; current yield above market at
WesBanco — Midwest 2008 SuperCommunity Bank Conference on 6ix