Wesbanco, Inc. · NASDAQ:WSBC
Wesbanco — Rodman & Renshaw Annual Global Investment Conference 2011
39 slides from Wesbanco's conference presentation, Sep 12, 2011
Slide 1: WesBanco: By all accounts, better.
WesBanco By all accounts, better. Rodman & Renshaw Annual Global Investment Conference New York, NY September 12 - 13, 20114
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
Slide 3: Headquarters in Wheeling, West Virginia
Headquarters in Wheeling, West Virginia Assets: $5.4 billion Founded in 1870 32 banks/23 companies acquired in 25 years Banking operations in West Virginia, Ohio and Western Pennsylvania 112 banking offices + Pittsburgh Business Loan Office 124 ATM’s Non-bank activities include: Wealth management, s
Slide 4: Deposit market share and footprint
Columbus Springfield Dayton Huntington Wheeling * SNL 12/31/10 Deposit Market Share Data Ranked #1-3 in deposit market share in 15 counties out of 37* Expanding along major highways to population centers (Columbus, Dayton, Cincinnati) Organized into seven markets
Slide 5: Quarterly financial summary
share data) ($ in thousands, except diluted earnings per share) 00 ’ s except per Jun 2011 Mar 2011 Dec 2010 Sep 2010 Jun 2010 Net Income $11,918 $10,240 $10,310 $9,153 $8,238 Diluted Earnings Per Share $ 0.45 $ 0.39 $ 0.39 $ 0.34 $ 0.31 Provision for Credit Losses $6,802 $8,041 $9,625 $11,778 $11,6
Slide 6: Return on Average Assets
Return on Average Assets 2.00% 1.80% 1.60% 1.40% 1.20% 1.00% 0.80% 0.60% 0.40% 0.20% 0.00% 19-10 20-10 30-10 49-10 10-11 20-11 -*ROAA: Pre-tax, Pre-provision ~-*ROAA: GAAP
Slide 7: Net Operating Revenue
• Net Operating Revenue = Net Interest Income plus Non-interest Income, excluding net securities gains and gains/losses on REO. See non-GAAP measures for additional information relating to the calculation of this item.
Slide 8: Summary Capital Ratios
Summary – Capital Ratios % *See non-GAAP measures for additional information relating to the calculation of this item.
Slide 9: 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. Continued growth in earnings per share in each of t
Slide 10: Growth by Acquisition: A WSBC Core Competency
(MM) Growth by Acquisition: A WSBC Core Competency Focused on higher growth metro markets and enhancing market share. Five acquisitions in nine years – assets more than doubled since the beginning of 2002. A history of successful consolidations. Acquired 5 branches in Columbus, Ohio market in 2009,
Slide 11: Focused on targeted M&A opportunities in its market areas
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 interest. Current st
Slide 12: Wealth management: $3.0B of assets under management/custody
$3.0B of assets under management/custody. Over 5,000 trust relationships. 4 locations in WV & OH Improving performance as asset values have grown. Product capabilities: Trust Investment management WesMark Funds Estate planning Financial planning Brokerage sales Retirement planning
Slide 13: 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 reports
Slide 14: Marcellus Shale activity in West Virginia
Map Source: Oil & Gas Financial Journal through Sterne Agee; data from Pennsylvania State University College of Earth and Mineral Sciences Research Study of 5/24/10. Area five time as large as Barnett Shale – primarily in WV & PA, parts of NY & OH. WVU study suggests 43k- 83k jobs created by Marcell
Slide 15: 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 emphas
Slide 16: Price / 2012 Estimated Earnings
Price / 2012 Estimated Earnings (x) (1) Price / 2012 Estimated Earnings (x) (1) Source: FactSet Research Systems and SNL Financial; Market data as of 8/26/2011 (1) 2012E earnings estimates per First Call; SRCE earnings estimate not available (2) Includes nationwide banks and thrifts between $2 billi
Slide 17: Market Performance – Cycle-to-Date
Market Performance – Cycle-to-Date Market Performance – Cycle-to-Date 6/30/07 7/11/08 7/28/09 8/11/10 8/26/11 0.00% 25.00% 50.00% 75.00% 100.00% 125.00% WesBanco, Inc. (-38.41%) KBW Regional Banking Index (-54.92%) KBW Bank Index (-66.65%) S&P 500 Index (-21.72%)
Slide 18: Market Performance – Since January 1, 2010
Market Performance – Since January 1, 2010 Market Performance – Since January 1, 2010 1/1/10 5/31/10 10/29/10 3/28/11 8/26/11 60.00% 80.00% 100.00% 120.00% 140.00% 160.00% 180.00% WesBanco, Inc. (47.24%) KBW Regional Banking Index (-7.62%) KBW Bank Index (-11.85%) S&P 500 Index (5.53%)
Slide 19: Securities Portfolio – Quality & Liquidity
Securities Portfolio – Quality & Liquidity Agency Agency Mortgage- Mortgage- Backed & Backed & CMOs, 43.9% CMOs, 43.9% US Govt. US Govt. Agencies Agencies 21.6% 21.6% Securities = $1.52 B ~28.1% of total assets Municipals, 32.0% Equities & Others, 2.5% Average portfolio yield of 3.72% at 6/30/11. WA
Slide 20: Municipal bond portfolio
Portfolio comprised of $494 million of tax exempts and taxable Build America Bonds. Approximately 90% are local issuers. G.O.’s are 74% of total; 26% revenue bonds. 96% rated, with 78% rated AA (or its equivalent) or higher. Only 6.0% below A – all are investment grade. About 59% in held to maturity
Slide 21: Diversified Loan Portfolio
Diversified Loan Portfolio Diversified Loan Portfolio Comm. Real Estate = $1.73 B Const & Dev. 10% Total Portfolio Loans = $3.26 B Investor- owned 57% Owner- occupied 33% Comm. Real Estate, 53% Comm. & Ind., 13% Consumer, 8% HELOC, 8% Res. Real Estate, 18%
Slide 22: Non-Accrual & Restructured Loans
Non-Accrual & Restructured Loans Non-Accrual & Restructured Loans
Slide 23: Net Charge-Offs vs. Provision for Loan Losses
Net Charge-Offs vs. Provision for Loan Losses Net Charge-Offs vs. Provision for Loan Losses
Slide 24: Annualized Net Loan Charge-offs / Average Loans
• National Peer Group = Average of banks nationwide with assets between $2-$10 B. • Source: SNL Financial Annualized Net Loan Charge-offs / Average Loans
Slide 25: NPA + 90 PD Loans / Total Loans + OREO
• National Peer Group = Average of banks nationwide with assets between $2-$10 B. • Source: SNL Financial NPA + 90 PD Loans / Total Loans + OREO
Slide 26: Conservative Exposure to Potential Problem Loan Areas
Exposure ¹ ($ Millions) % of RBC ² Regulatory Guideline Total Land, C&D, and Investor-Owned $ 1,139 233% 300% Conservative Exposure to Potential Problem Loan Areas Conservative Exposure to Potential Problem Loan Areas Land, Construction & Development $257 53% 100% Investor-Owned Commercial $668 137%
Slide 27: Net Interest Margin & Efficiency Ratio
Net Interest Margin & Efficiency Ratio Net Interest Margin & Efficiency Ratio
Slide 28: Diversified Operating Non-interest Income
Diversified Operating Non-interest Income* Diversified Operating Non-interest Income* Noninterest income contributed 26% of 2011 YTD revenue. Non-bank offerings (trust, insurance, securities) contributed $12.4 million in YTD 2011 revenue. Trust fees are up 17.4% year over year. Approximate 17% decli
Slide 29: Interest Rate Sensitivity
Interest Rate Sensitivity Interest Rate Sensitivity Immediate Change in Interest Rates % Change in Net Interest Income from Base Over One Year June 30, 2011 Dec. 31, 2010 Up 1% Rate Shock +1.2% +2.4% Up 2% Rate Shock Up 2% Rate Shock +0.6% +0.6% +1.7% +1.7% Up 2% Rate Ramp +1.5% +2.3% Down 1% Rate S
Slide 30: Investor Remarks
Investor Remarks Investor Remarks • Solid 2Q:11 results on strengthening PTPP and lower credit costs: WesBanco reported 2Q:11 GAAP EPS of $0.45, a 45% increase from the $0.31 reported for 2Q:10 …which was $0.10 above our estimate and $0.07 ahead of the Street. Douglas Rainwater, Rodman & Renshaw, Ju
Slide 31: 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.
Slide 32: Loans by market
Commercial Retail Total Loans Upper Ohio Valley $ 465 $ 381 $ 846 North Central WV Parkersburg Kanawha Valley Western PA Total East Markets $ 1,163 $ 689 $ 1,852 Central Ohio Southwest Ohio Southeast Ohio Total West Markets $ 1,003 $ 409 $ 1,412 Total Bank $ 2,166 $ 1,098 $ 3,264 ($ in thousands)
Slide 33: Appendix: Credit Quality By Market
* - Includes $0.9 Million for bank-owned hospitality property. Day PD & Accruing Non- Accrual TDR Other RE Owned Upper Ohio Valley $ 1,494 $ 7,691 $ 4,200 $ 472 North Central WV Parkersburg 6,099 Kanawha Valley 2,722 N/A Western PA 2,538 Total East Markets $ 3,345 $ 19,569 $ 5,543 $ 1,377 Central Oh
Slide 34: Tangible equity to tangible assets
2Q’10 3Q’10 4Q’10 1Q’11 2Q’11 Total shareholder’s equity $ 604,714 $ 608,287 $ 606,863 $ 611,978 $ 623,037 Less: goodwill & other intangible assets (286,908) (286,228) (285,559) (284,941) (284,336) Tangible equity 317,806 322,059 321,304 327,037 338,701 Total assets 5,356,261 5,362,623 5,361,458 5,3
Slide 35: Net Revenue
2Q’10 3Q’10 4Q’10 1Q’11 2Q’11 Net Interest income $ 41,148 $ 41,986 $ 42,326 $ 41,476 $ 43,053 Plus: Non-interest income 14,585 14,976 14,997 14,504 15,019 Less: Net securities gains and net gains/losses on other real estate owned and other assets (417) (551) (528) (257) Net revenue $ 56,150 $ 56,63
Slide 36: Operating non-interest income
2007 2008 2009 2010 2011 (annualized) Non-interest Income $ 52,939 $ 57,346 $ 64,589 $ 59,599 $ 59,531 Less: Net Securities gains 1,556 6,046 3,362 Less: losses on other real estate owned and other assets 1,306 (1,715) (747) (4,128) (1,646) Net operating non-interest income $ 50,690 $ 57,505 $ 59,29
Slide 37: Return on Average Tangible Equity
2Q’10 3Q’10 4Q’10 1Q’11 2Q’11 Net income (annualized) $ 33,043 $ 36,313 $ 40,903 $ 41,531 $ 47,805 Plus: amortization of intangibles (annualized) 1,787 1,743 1,724 1,629 1,577 Net income before amortization of intangibles (annualized) 34,830 38,056 42,627 43,159 49,382 Average total shareholders’ eq
Slide 38: ROAA: Pre-tax, Pre-provision
1Q’10 2Q’10 3Q’10 4Q’10 1Q’11 2Q’11 Income before provision for income taxes $ 8,780 $ 9,491 $ 9,503 $12,187 $12,448 $15,564 Provision for credit losses 11,500 11,675 11,778 9,625 8,041 6,802 Taxable equivalent adjustment 1,612 1,535 1,488 1,507 1,608 1,640 21,892 22,701 22,769 23,319 22,097 24,006
Slide 39: WesBanco: By all accounts, better.
WesBanco By all accounts, better.
WesBanco — Rodman & Renshaw Annual Global Investment Conference 2011 on 6ix