Wesbanco, Inc. · NASDAQ:WSBC

Wesbanco — Stephens Investor Conference, February 2012

34 slides from Wesbanco's conference presentation, Feb 10, 2012

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

    WwW WesBanco By all accounts, better. Steme Agee Investor Orlanclo, FL February 12-14, 2012

  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 company overview

     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  122 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: Annual Performance Comparison

    Annual Performance Comparison ($ in thousands, except diluted earnings per share)00’s except per share data) Dec 2009 Dec 2010 Dec 2011 Net Income $18,700 $35,611 $43,809 Diluted Earnings Per Share $ 0.70 $ 1.34 $ 1.65 Provision for Credit Losses $50,372 $44,578 $35,311 Return on Average Assets 0.43

  6. Slide 6: Annual Return on Average Assets

    Annual Return on Average Assets 2.00% 1.80% 1.60% 1.76% 1.68% 1.67% 1.40% 1.59% 1.45% 1.20% 1.00% 1.09% 0.80% 0.81% 0.60% 0.72% 0.66% 0.40% 0.43% 0.20% 0.00% 2007 2008 2009 2010 2011 ROAA: Pre-tax, Pre-provision ROAA: GAAP

  7. Slide 7: 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% 2007 2008 2009 2010 2011

  8. Slide 8: Summary – Capital Ratios %

    Summary – Capital Ratios % Total Risk Based Capital Tangible Equity to Tangible Assets * 16.00% 14.46% 14.32% 14.00% 13.20% 12.37% 12.00% 11.41% 10.00% 7.90% 8.00% 6.68% 5.94% 5.88% 6.33% 6.00% 4.00% 2.00% 0.00% 2007 2008 2009 2010 2011 *See non-GAAP measures for additional information relating to t

  9. 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.  Remained profitable each quarter throughout recession.  2011 produced the highest loan production increase in 5 years.  44% production

  10. Slide 10: Targeted M&A

    Targeted M&A  History of successful consolidations.  WesBanco is focused on targeted M & A opportunities in its higher growth metro markets within our market areas.  Limited FDIC-assisted transactions expected, but plenty of moderately distressed banks and “tired” management teams, as well as hea

  11. Slide 11: Wealth Management Services

    Wealth Management Services  $3.0B of assets under management/custody.  Over 5,000 trust relationships.  Combined Trust and Brokerage under one Assets Under Management ($B) management team. Management Fees ($MM) Net Securities Brokerage Revenue ($MM)  10 locations in WV & OH $16.2 $15.8 $17.2  I

  12. Slide 12: Economic Benefits of WV

    Economic Benefits of WV WV reported a surplus of revenue over expense for the latest fiscal year. State of WV recently implemented legislation to reduce Business Franchise and Corporate Net Income Taxes over several years. WV reports stable home prices over the past five years. WV reports 7.9% u

  13. Slide 13: WSBC West Virginia and Ohio Marcellus/Utica Shale Opportunity

    WSBC West Virginia and Ohio Marcellus/Utica Shale Opportunity Marcellus Shale Regional Coverage WV and OH Marcellus Shale Opportunity(1) HBAN UBSI BBT PNC JPM UCFC PEBO SMMF Farmers NBC 0.0% 4.0% 8.0% 12.0% 16.0% WesBanco (112 Branches) Deposit Market Share in WV and OH Marcellus Shale Counties Sour

  14. Slide 14: 2012 Business Initiatives

    2012 Business Initiatives  Focus on DDA growth and continued liability mix.  Focus on credit quality, impaired loan levels and reduce charge-offs as economy improves.  Focus on organic loan growth, with an emphasis on business banking and C&I lending - $700 million goal for 2012.  Pursue opportu

  15. Slide 15: Peer Group – Price / 2012 Estimated Earnings

    Peer Group – Price / 2012 Estimated Earnings Price / 2012 Estimated Earnings (x) (1) Median (Excl. WSBC): 12.0x 14.0x 13.5x 13.1x 13.0x 12.8x 12.7x 12.4x 12.2x 12.0x 11.8x 11.8x 11.4x 11.0x 11.0x 11.0x 10.8x 10.5x 10.0x 9.4x 9.0x 8.0x 7.0x 6.0x FFBC STBA UBSI CHCO PRK FNB National ONB PEBO FCF CTBI

  16. Slide 16: 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 8/22/08 10/16/09 12/10/10 2/6/12 WesBanco, Inc. (-28.81%) KBW Bank Index (-60.40%) KBW Regional Banking Index (-41.35%) S&P 500 Index (-10.58%) Source: FactSet Research Systems

  17. Slide 17: Current Market Update – Since January 1, 2010

    Current Market Update Market Performance – Since January 1, 2010 200.00% 180.00% 160.00% 140.00% 120.00% 100.00% 80.00% 60.00% 1/1/10 7/9/10 1/19/11 7/29/11 2/6/12 WesBanco, Inc. (70.18%) KBW Bank Index (4.66%) KBW Regional Banking Index (20.20%) S&P 500 Index (20.56%) Source: FactSet Research Syste

  18. Slide 18: Securities Portfolio – Quality & Liquidity

    Securities Portfolio – Quality & Liquidity Securities = $1.61 B  Average tax-equivalent ~29.1% of total assets portfolio yield of 3.52% at 12/31/11. US Govt.  WAL approx. 5.2 years; Agencies modified duration 4.0%. 12.3% Agency  Over 58% unpledged. Mortgage-  No significant private Backed & labe

  19. Slide 19: Diversified Loan Portfolio

    Diversified Loan Portfolio Total Portfolio Loans = $3.25 B Comm. Real Estate = Comm. & $1.69 B Ind., 13% LHFS, 0.2% Const & Dev. Consumer, 10% 8% Comm. Investor- HELOC, 8% Real owned Estate, 57% 52% Res. Real Owner- Estate, 19% occupied 33%

  20. Slide 20: 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 2007 2008 2009 2010 2011 Non-Accrual TDRs Accruing interest

  21. Slide 21: Net Charge-Offs vs. Provision for Loan Losses

    Net Charge-Offs vs. Provision for Loan Losses ($ in thousands) $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 2007 2008 2009 2010 2011 Net Charge-Offs Provision for Loan Losses

  22. Slide 22: Net Loan Charge-offs / Average Loans

    Net Loan Charge-offs Average Loans WSBC National Peers* 1.75% 1.61% 1.34% 1.28% 1.30% 0.80% 1.10% 0.24% 0.58% 0.28% 2007 2008 2009 2010 2011 • National Peer Group = Average of 81 of 99 banks nationwide with assets between $2-$10 B. • Source: SNL Financial

  23. Slide 23: NPA + ≥90 PD Loans / Total Loans + OREO

    NPA + ≥ 90 PD Loans Total Loans + OREO WSBC National Peers* 5.13% 4.77% 3.83% 2.48% 3.40% 2.71% 2.93% 1.15% 1.60% 0.96% 2007 2008 2009 2010 2011 • National Peer Group = Average of 41 of 99 banks nationwide with assets between $2-$10 B. • Source: SNL Financial

  24. Slide 24: Diversified Operating Non-interest Income

    Diversified Operating Non-interest Income* Other Inc. Insurance Securities brokerage Trust  Non-interest income contributed Service charges & Fees 26% of 2011 YTD net revenue. ($MM) $60.4 $60.2  Non-bank offerings (trust, $57.3 $59.3 insurance, securities) contributed $52.5 $24 million in YTD 2011

  25. Slide 25: Interest Rate Sensitivity

    Interest Rate Sensitivity % Change in Net Interest Income from Immediate Change in Base Over One Year Interest Rates Dec. 31, 2011 Dec. 31, 2010 Up 1% Rate Shock +1.7% +2.4% Up 2% Rate Shock +1.3% +1.7% Up 2% Rate Ramp +2.0% +2.3% Down 1% Rate Shock -3.5% -2.9% EVE Up 2% Rate Ramp +12.4% +4.4% EVE D

  26. Slide 26: Performance, Stability, Diversity in Earnings and Capital Strength

    Performance, Stability, Diversity in Earnings 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 fo

  27. Slide 27: Appendix: Loan Totals by Market

    Appendix: Loan Totals by Market ($ millions) December 31, 2011 Commercial Retail Total % of Total Loans Upper Ohio Valley $ 459 $ 392 $ 851 26% North Central WV 244 186 430 13% Parkersburg 206 86 292 9% Kanawha Valley 61 44 105 3% Western PA 176 13 189 6% Total East Markets $ 1,146 $ 721 $ 1,867 57%

  28. Slide 28: Appendix: Credit Quality By Market

    Appendix: Credit Quality By Market ($ thousands) December 31, 2012 90 Day PD Non- TDR Other RE Total by % of Total & Accruing Accrual Owned Region Upper Ohio Valley $ 760 $ 8,261 $ 4,024 $ 688 $13,733 15% North Central WV 458 823 1,052 56 2,389 3% Parkersburg 386 4,760 1,157 312 6,615 7% Kanawha Val

  29. Slide 29: Non-GAAP Financial Measures

    Non-GAAP Financial Measures Tangible equity to tangible assets ($ in thousands) 2007 2008 2009 2010 2011 Total shareholder’s equity $ 580,319 $ 659,371 $ 588,716 $ 606,863 $ 633,790 Less: goodwill & other intangible assets (276,730) (267,883) (288,292) (285,559) (283,150) Tangible equity $ 303,589 $

  30. Slide 30: Non-GAAP Financial Measures

    Non-GAAP Financial Measures Net Revenue ($ in thousands) 2007 2008 2009 2010 2011 Net Interest income $ 119,313 $ 160,537 $ 158,372 $ 166,092 $ 169,365 Plus: Non-interest income 52,939 57,346 64,589 59,599 59,888 Less: Net securities gains and net gains/losses on other real estate owned and other as

  31. Slide 31: Non-GAAP Financial Measures

    Non-GAAP Financial Measures Operating non-interest income ($ in thousands) 2007 2008 2009 2010 2011 Non-interest Income $ 52,939 $ 57,346 $ 64,589 $ 59,599 $ 59,888 Less: Net Securities gains 943 1,556 6,046 3,362 963 Less: net gains/losses on other real estate owned and other assets (1,325) (1,715)

  32. Slide 32: Non-GAAP Financial Measures

    Non-GAAP Financial Measures Return on Average Tangible Equity ($ in thousands) 2007 2008 2009 2010 2011 Net income $ 44,669 $ 38,117 $ 23,933 $ 35,611 $ 43,809 Plus: amortization of intangibles (1) 1,615 2,477 2,022 1,774 1,566 Net income before amortization of intangibles $ 46,284 $ 40,594 $ 25,955

  33. Slide 33: Non-GAAP Financial Measures

    Non-GAAP Financial Measures ROAA: Pre-tax, Pre-provision and Pre-TARP * ($ in thousands) 2007 2008 2009* 2010* 2011 Income before provision for income taxes and TARP* $ 52,690 $ 42,610 $ 22,941 $ 39,961 $ 53,647 Provision for credit losses 8,516 32,649 50,372 44,578 35,311 Taxable equivalent adjustm

  34. Slide 34: WesBanco

    W WesBanco By all accounts, better.

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