Wesbanco, Inc. · NASDAQ:WSBC
Wesbanco — Keefe, Bruyette & Woods Community Bank Investor Conference 2008
20 slides from Wesbanco's conference presentation, Jul 30, 2008
Slide 1: Keefe, Bruyette & Woods Community Bank Investor Conference
Keefe, Bruyette & Woods Community Bank Investor Conference New York, NY July 29 - 30, 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: WesBanco Stock Profile
WesBanco Stock Profile NASDAQ Global Stock Market: WSBC Market capitalization: $535 million* 2008 average daily shares traded: 138,000 26.5 million shares; 93% float 43% institutional ownership * Closing price of $20.14 on 7/24/08. 3
Slide 4: Corporate Profile
Corporate Profile Founded in 1870 in Wheeling, WV $5.3 billion in assets Over 30 acquisitions in past 25 years Three state presence 109 full-service banking offices & 148 ATMs Trust, securities brokerage, insurance, proprietary mutual fund family 4
Slide 5: WesBanco Market Areas
WesBanco Market Areas Source: SNL Financial and Microsoft MapPoint 5
Slide 6: 2008 Strategy / Business Plan
2008 Strategy / Business Plan Focus on balance sheet remix strategy; higher- yielding loan products and non interest-bearing DDA. Concentrate on efficiency ratio by improving non- interest income and reducing expenses. Monitor for credit deterioration. 6
Slide 7: Balance Sheet Re-Mix Strategy
Balance Sheet Re-Mix Strategy Increase non-interest bearing deposit relationships and decrease less profitable single service CD’s. Adjust loan pricing to increase yields. Continue implementation of liquidity strategies to reduce mortgage loans and investment securities to support balance shee
Slide 8: Improve Efficiency Ratio
Improve Efficiency Ratio Continue to evaluate lower cost alternatives for necessary services and infrastructure. Eliminate practices and processes that do not support business strategy. Continued improvement will result from the full integration of Oak Hill operations. 8
Slide 9: Monitor for Credit Deterioration
Monitor for Credit Deterioration Enhance depth and frequency of credit evaluation process including additional professional resources. Continue to focus on borrower contact and knowledge of business risks. Executive management involved in continual monitoring process. Emphasize accountabilit
Slide 10: Wealth Management Profile
Wealth Management Profile Market value of trust assets $2.9 billion at 6/30/08. Currently manage over 5,000 trust relationships. 74% of trust assets are under management at 6/30/08. Trust contributed $0.20 to earnings per share in 2007. Trust revenue for the first six months of 2008 totale
Slide 11: 2008 Second Quarter Financial Results
2008 Second Quarter Financial Results QTD QTD (dollars in thousands) 6/30/2008 3/31/2008 % CHG Net income $ 11,284 $ 9,503 18.7% EPS - diluted $ 0.42 $ 0.36 16.7% Return on assets 0.87% 0.72% 20.8% Return on tangible equity 14.48% 12.12% 19.5% Net interest margin 3.75% 3.48% 7.8% 11
Slide 12: 2008 YTD Financial Results
2008 YTD Financial Results YTD YTD (dollars in thousands) 6/30/2008 6/30/2007 % CHG Net income $ 20,787 $ 24,242 (14.3%) EPS - diluted $ 0.78 $ 1.15 (32.2%) Return on assets 0.79% 1.22% (35.0%) Return on tangible equity 13.34% 18.46% (27.8%) Net interest margin 3.67% 3.52% 4.3% 12
Slide 13: Composition of Loans
Composition of Loans 6/30/08 6/30/07 Held for Sale Held for Sale Commercial & Commercial & 2% Industrial 2% Industrial Consumer Consumer 14% Home Equity 9% 13% Home Equity 9% 6% 6% 25% Residential 39% Residential 44% Real Estate Real Estate 31% Commercial Real Estate Commercial Real Estate 13
Slide 14: Commercial Real Estate
Commercial Real Estate $000s % of % of Category Committed Capital CRE Land & Land Development $ 85,472 14.6% 5.1% Residential Development 63,161 10.9% 3.8% Commercial Construction 119,171 20.4% 7.1% Subtotal Subject to 100% of Capital Guidelines 267,804 45.9% 16.0% Investor Owned CRE: Residential/Mu
Slide 15: Credit Quality
Credit Quality In thousands Non-performing In thousands Net charge-offs $35,000 assets 0.70% $18,000 0.60% $16,000 0.45% $30,000 0.61% 0.60% 0.49% $14,000 0.44% $25,000 0.50% $12,000 0.40% $20,000 0.40% 0.31% 0.29% $10,000 0.28% 0.27% 0.23% $15,000 0.26% 0.30% $8,000 $6,000 0.20% $10,000 0.20% $4,00
Slide 16: Interest Rate Risk
Interest Rate Risk Change in Interest Change in Net Interest Rates Income from Base (1) 6/30/2008 12/31/2007 Down 2% Rate Shock 2.88% 4.52% Down 1% Rate Shock 2.59% 3.54% Up 2% Rate Ramp -1.85% -3.40% Up 1% Rate Shock -2.75% -4.97% Up 2% Rate Shock -5.66% -10.23% • Recent A/LM strategies focus on be
Slide 17: Capital Ratios
Capital Ratios 6/30/2008 12/31/2007 % CHG Tier 1 Leverage 8.54% 8.27% 2.2% Tangible Equity to Assets 6.29% 5.96% 5.4% Total Cap to Risk Wtd Assets 12.09% 11.49% 5.2% Capital ratios continue to improve subsequent to the merger with Oak Hill. 17
Slide 18: WesBanco / Peer Group – Stock Price Performance
WesBanco / Peer Group – Stock Price Performance WesBanco 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 -36.0% -16.5% 2008 YTD* -14.6% -14.7% '02-'08 YTD (1) 4.1% -3.9% (1) From 2002 through June 30, 2008 WesBanco has outperformed both the NASDAQ Bank
Slide 19: Dividend Payout Ratio
Dividend Payout Ratio 72% 55% 2002 2005 2008 ( a n n u a lize d ) 1) 23 consecutive years of dividend increases. 2) Current dividend yield of approximately 5.6% (at 7/24/08). 3) 19% increase in dividends since 2002. 19
Slide 20: Key Investor Messages
Key Investor Messages Outperformed median peer group in stock price between 2002 and June 30, 2008. 23 consecutive years of dividend increases with a current yield of approximately 5.6%. Net interest margin shows significant increase YTD. Credit deterioration and resulting losses are managea
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