Wesbanco, Inc. · NASDAQ:WSBC

Wesbanco — Investor Presentation (May 2011)

38 slides from Wesbanco's investor presentation, May 11, 2011

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

    Ay VAY WesBanco By all accounts, better. Kasil, Cruyattie & Weods Wooels Marcalus Shale | Mey 12, 2020

  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: $5.4 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  126 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: Quarterly Performance Comparison

    Quarterly Performance Comparison ($ in thousands, except diluted earnings per share)00’s except per share data) Mar 2011 Dec 2010 Sep 2010 Jun 2010 Mar 2010 Net Income $10,240 $10,310 $9,153 $8,238 $7,910 Diluted Earnings Per Share $ 0.39 $ 0.39 $ 0.34 $ 0.31 $ 0.30 Provision for Credit Losses $8,04

  6. Slide 6: Return on Average Assets

    Return on Average Assets 1.80% 1.60% 1.67% 1.67% 1.71% 1.67% 1.59% 1.64% 1.40% 1.20% 1.00% 0.80% 0.60% 0.76% 0.77% 0.61% 0.67% 0.53% 0.59% 0.40% 0.20% 0.00% 4Q-09 1Q-10 2Q-10 3Q-10 4Q-10 1Q-11 ROAA: Pre-tax, Pre-provision ROAA: GAAP

  7. Slide 7: Summary – Capital Ratios %

    Summary – Capital Ratios % Total Risk Based Capital Tangible Equity to Tangible Assets * 14.00% 12.87% 12.89% 13.17% 13.48% 12.21% 12.37% 12.68% 12.00% 10.00% 8.00% 5.75% 5.88% 6.06% 6.27% 6.34% 6.33% 6.43% 6.00% 4.00% 2.00% 0.00% 3Q'09 4Q'09 1Q'10 2Q'10 3Q'10 4Q'10 1Q'11 *See non-GAAP measures for

  8. Slide 8: Recent Accomplishments

    Recent Accomplishments  Remained profitable each quarter throughout recession.  Continued growth in earnings per share in each of the past 5 quarters.  Purchased five branches with $600 million in deposits using existing capital resources.  Paid back $75 million in TARP without common raise.  M

  9. Slide 9: Growth by Acquisition: A WSBC Core Competency

    Growth by Acquisition: A WSBC Core Competency (MM) $6.0  Focused on higher 7.5 year Asset Growth CAGR = 11.8% growth metro markets $5.0 and enhancing market $4.0 share.  Five acquisitions in $3.0 nine years – assets $2.0 more than doubled since 2001. $1.0  A history of successful consolidations.

  10. Slide 10: Targeted M&A

    Targeted M&A  WesBanco is focused on targeted M & A opportunities in market area.  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 intere

  11. Slide 11: Wealth Management Services

    Wealth Management Services  $3.1B of assets under management/custody.  Over 5,000 trust relationships.  4 locations in WV & OH  Improving performance as Assets Under Management ($B) Management Fees ($MM) asset values have grown.  Product capabilities: $16.2 $15.8 $16.2 $14.9  Trust $13.7  Inv

  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.  PSU study suggests 200k jobs created by Marcellus drilling activity by 2020.  Total estimated economic activity by 2020 - $19B.  Portion relating to WV - $3B.  WSBC in 10 out of 32 counties

  13. Slide 13: 2011 Business Initiatives

    2011 Business Initiatives  Actively remix the balance sheet – loans & deposits - to improve I/R 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 emphasis on busines

  14. Slide 14: Peer Group – Price / Tangible Book

    Peer Group – Price / Tangible Book Price / Tangible Book (x) Redeemed TARP / Did not Receive 2.56 Still Has TARP 2.50 Common Equity Raise Since Jan. 2008 2.09 1.98 1.84 Median (Excl. WSBC): 1.47x 2.00 1.77 1.59 1.50 1.47 1.45 1.50 (x) 1.19 1.07 1.02 1.00 0.99 1.00 0.50 0.00 FNB UBSI CHCO PRK STBA WS

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

    Peer Group – Price / 2012 Estimated Earnings Price / 2012 Estimated Earnings (x) (1) Median (Excl. WSBC): 15.0x 12.5x 13.9x 14.0x 13.2x 13.2x 13.0x 12.5x 12.6x 12.6x 12.5x 12.1x 12.0x 12.0x 11.4x 11.3x 11.2x 11.2x 11.0x 10.0x 10.0x 9.0x 8.0x 7.0x (2) 6.0x MSFG STBA WSBC FRME CTBI PRK ONB FFBC CHCO N

  16. Slide 16: Current Market Update: Cycle-to-Date

    Current Market Update Market Performance – Cycle-to-Date 125.0% 100.0% 75.0% 50.0% 25.0% 0.0% 6/30/2007 6/13/2008 6/2/2009 5/19/2010 5/6/2011 WesBanco, Inc. (-33.66%) KBW Bank Index (-55.06%) KBW Regional Banking Index (-43.16%) S&P 500 Index (-10.85%) Source: FactSet Research Systems 16

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

    Current Market Update Market Performance – Since January 1, 2010 180.0% 170.0% 160.0% 150.0% 140.0% 130.0% 120.0% 110.0% 100.0% 90.0% 80.0% 1/1/2010 5/3/2010 9/3/2010 1/3/2011 5/6/2011 WesBanco, Inc. (58.59%) KBW Bank Index (18.78%) KBW Regional Banking Index (16.48%) S&P 500 Index (20.19%) Source:

  18. Slide 18: Significant Liquidity

    Significant Liquidity  Loan-to-deposit ratio at 78% at 3/31/11, allowing for plenty of loan growth.  Reduced reliance on wholesale funding (borrowings and brokered CDs); < 15% of total assets.  Securities portfolio of $1.5B highly liquid; 54% unpledged and $6.1 MM in net unrealized gains on AFS s

  19. Slide 19: Securities Portfolio – Quality & Liquidity

    Securities Portfolio – Quality & Liquidity Securities = $1.47 B  Average portfolio yield ~27.3% of total assets of 3.90% at 3/31/11.  WAL approx. 4.7 years, duration 3.5%. US Govt.  Over 54% unpledged. Agencies Agency  Minimal private label 24.6% Mortgage- CMO’s, equities and Backed & corporate/

  20. Slide 20: Municipal Bond Portfolio Characteristics

    Municipal Bond Portfolio Characteristics  Portfolio comprised of $487 million of tax exempts and taxable Build America Bonds.  Approximately 88% are local issuers.  G.O.‟s are 73% of total; 27% revenue bonds.  96% rated, with 76% rated AA (or its equivalent) or higher. Only 7.8% below A – all ar

  21. Slide 21: Diversified Loan Portfolio

    Diversified Loan Portfolio Total Portfolio Loans = $3.24 B Comm. Real Estate = Comm. & $1.74 B Ind., 13% Const & Dev. Consumer, 9% 8% Comm. Investor- HELOC, 8% Real owned Estate, 57% 53% Res. Real Owner- Estate, 18% occupied 34%

  22. Slide 22: Non-Accrual & Restructured Loans

    Non-Accrual & Restructured Loans $80,000 $68,439 $70,000 $65,083 $59,571 $60,000 $53,578 $48,820 $50,000 $47,483 $40,000 $30,000 $35,532 $36,636 $29,188 $29,472 $20,000 $10,000 $0 1Q'10 2Q'10 3Q'10 4Q'10 1Q'11 Non-Accruals Restructureds

  23. Slide 23: Annualized Net Charge-offs / Average Loans

    Annualized Net Charge-offs / Average Loans WSBC National Peers* 2.23% 1.97% 1.92% 1.90% 2.09% 1.71% 1.75% 1.67% 1.47% 1.59% 1.42% 1.03% 1.58% 0.83% 0.80% 0.68% 2Q'09 3Q'09 4Q'09 1Q'10 2Q'10 3Q'10 4Q'10 1Q'11 • National Peer Group = Average of 96 banks nationwide (92 of 96 for 1Q „11) ) with assets b

  24. Slide 24: NPA + ≥ 90 PD Loans / Total Loans + OREO

    NPA + ≥ 90 PD Loans / Total Loans + OREO WSBC National Peers* 5.52% 5.65% 5.59% 5.38% 5.46% 5.07% 4.48% 3.91% 3.21% 3.40% 3.28% 2.81% 3.10% 3.16% 2.67% 2.70% 2Q'09 3Q'09 4Q'09 1Q'10 2Q'10 3Q'10 4Q'10 1Q'11 • National Peer Group = Average of 96 banks nationwide (47 of 96 for 1Q „11) with assets betwe

  25. Slide 25: Conservative Exposure to Potential Problem Loan Areas

    Conservative Exposure to Potential Problem Loan Areas WSBC is Below Regulatory CRE Guidelines Exposure1 % of Regulatory ($Millions) RBC2 Guideline Land, Construction & Development $219 46% 100% Investor-Owned Commercial $664 139% N/A Investor-Owned Multi-Family $216 45% N/A Total Land, C&D, and Inve

  26. Slide 26: Net Interest Margin

    Net Interest Margin NIM Yield on Earning Assets Cost of Funds 7.00% 6.00% 5.26% 5.10% 4.94% 4.92% 4.98% 5.00% 4.00% 3.57% 3.61% 3.66% 3.56% 3.67% 3.00% 1.91% 2.00% 1.74% 1.56% 1.48% 1.44% 1.00% 0.00% 1Q'10 2Q'10 3Q'10 4Q'10 1Q'11

  27. Slide 27: Net Interest Margin & Efficiency Ratio

    Net Interest Margin & Efficiency Ratio Net Interest Margin Efficiency Ratio 3.80% 69.50% Net Interest Margin 3.70% Efficiency Ratio 68.00% 3.60% 66.50% 3.50% 65.00% 3.40% 3.30% 63.50% 3.20% 62.00% 3.10% 60.50% 3.00% 59.00% 2Q'09 3Q'09 4Q'09 1Q'10 2Q'10 3Q'10 4Q'10 1Q'11

  28. Slide 28: Diversified Noninterest Income

    Diversified Noninterest Income Other Inc. Insurance Securities brokerage Trust Service charges & Fees  Noninterest income ($MM) $64.6 contributed 26% of 2011 $59.6 $58.8 YTD revenue. $57.3 $52.9  Non-bank offerings (trust, insurance, securities) contributed $6.5 million in YTD 2011 revenue.  Trus

  29. Slide 29: Interest Rate Sensitivity

    Interest Rate Sensitivity % Change in Net Interest Income from Immediate Change in Base Over One Year Interest Rates Mar. 31, 2011 Dec. 31, 2010 Up 1% Rate Shock +1.9% +2.4% Up 2% Rate Shock +1.3% +1.7% Up 2% Rate Ramp +2.0% +2.3% Down 1% Rate Shock -2.7% -2.9%

  30. Slide 30: Stability, Diversity and Capital Strength

    Stability, Diversity and Capital Strength Strong regulatory capital. Proven acquisition-oriented growth strategy. Excellent liquidity. Asset quality compares favorably with peers. Diverse earnings stream. Positioned for rising rates. Potential for improved stock price.

  31. Slide 31: Questions?

    Questions?

  32. Slide 32: Appendix: Loan Totals by Market

    Appendix: Loan Totals by Market ($ millions) Commercial Retail Total Loans Upper Ohio Valley $ 453 $ 378 $ 831 North Central WV 233 172 405 Parkersburg 203 83 286 Kanawha Valley 61 34 95 Western PA 196 14 210 Total East Markets $ 1,146 $ 681 $ 1,827 Central Ohio 513 139 652 Southwest Ohio 339 150 48

  33. Slide 33: Appendix: Credit Quality By Market

    Appendix: Credit Quality By Market ($ thousands) 90 Day PD Non- Reneg. Other RE & Accruing Accrual Loans Owned Upper Ohio Valley $ 1,213 $ 6,296 $ 5,227 $ 1,105 North Central WV 325 588 740 169 Parkersburg 324 5,658 721 222 Kanawha Valley 133 2,468 N/A 295 Western PA 582 1,377 250 275 Total East Mar

  34. Slide 34: Non-GAAP Financial Measures

    Non-GAAP Financial Measures Tangible equity to tangible assets 3Q’09 4Q’09 1Q’10 2Q’10 3Q’10 4Q’10 1Q’11 Total shareholder’s equity $ 592,335 $ 588,716 $ 596,473 $ 604,714 $ 608,287 $ 606,863 $ 611,978 Less: goodwill & other intangible assets (289,087) (288,292) (287,593) (286,908) (286,228) (285,55

  35. Slide 35: Non-GAAP Financial Measures

    Non-GAAP Financial Measures Return on Average Tangible Equity 1Q’09 2Q’09 3Q’09 4Q’09 Net income (annualized) $ 22,099 $ 23,039 $ 21,591 $ 28,949 Plus :amortization of intangibles (annualized) 1,839 2,116 2,079 2,050 Net income before amortization of intangibles (annualized) 23,938 25,155 23,670 30,

  36. Slide 36: Non-GAAP Financial Measures

    Non-GAAP Financial Measures Return on Average Tangible Equity 1Q’10 2Q’10 3Q’10 4Q’10 1Q’11 Net income (annualized) $ 32,081 $ 33,043 $ 36,313 $ 40,903 $ 41,531 Plus :amortization of intangibles (annualized) 1,842 1,787 1,743 1,724 1,629 Net income before amortization of intangibles (annualized) 33,

  37. Slide 37: Non-GAAP Financial Measures

    Non-GAAP Financial Measures ROAA: Pre-tax, Pre-provision, Pre-TARP 4Q’09 1Q’10 2Q’10 3Q’10 4Q’10 1Q’11 Income before provision for income taxes $ 5,915 $ 8,780 $ 9,491 $ 9,503 $12,187 $12,448 Provision for credit losses 14,353 11,500 11,675 11,778 9,625 8,041 Taxable equivalent adjustment 1,725 1,61

  38. Slide 38: WesBanco

    W WesBanco By all accounts, better.

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