Wesbanco, Inc. · NASDAQ:WSBC

Wesbanco — Keefe, Bruyette & Woods One-on-One Meetings, February 5-6, 2013

32 slides from Wesbanco's conference presentation, Feb 4, 2013

  1. Slide 1: Keefe, Bruyette & Woods One-on-One Meetings

    Keefe, Bruyette & Woods One-on-One Meetings Charlotte, NC & Atlanta, GA February 5 - 6, 2013

  2. Slide 2: Forward-looking statements

    Forward-looking statements in this report 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 in this report should

  3. Slide 3: WesBanco company overview

     Headquarters in Wheeling, West Virginia  Assets: $6.1 billion  Founded in 1870  33 banks/24 companies acquired in 25 years  Banking operations in West Virginia, Ohio and Western Pennsylvania  118 banking offices + Pittsburgh Business Loan Office  107 ATM’s  Wealth management, securities bro

  4. Slide 4: Executive management team

    Years in Years with Executive Position Banking WSBC James Gardill Chairman of the Board 40* 40 Paul Limbert President & CEO 35 35 Robert Young, CPA EVP & CFO 26 11 Peter Jaworski EVP & Chief Credit Officer 28 17 Bernard Twigg EVP – Commercial Loans 28 9 Jonathan Dargusch EVP – Wealth Management 31 2

  5. Slide 5: 2012 highlights

     Increased dividends to shareholders 4 times in last 8 quarters totaling 28.6%.  Continued growth in earnings and improved credit quality.  Continued control of expenses.  Continued growth in deposits and loans with a strong loan origination focus.  Formed a private banking team to coordinate d

  6. Slide 6: Fidelity Bancorp acquisition rationale

     Natural expansion opportunity into largest deposit market in close proximity to WSBC headquarters.  Builds on WSBC’s existing commercial/retail presence in Pittsburgh market.  Provides high quality branch network with no overlap to existing WSBC branches.  Attractive financial results.  Deploy

  7. Slide 7: An Expanding Franchise in Contiguous Markets

    An Expanding Franchise in Contiguous Markets: 118 banking offices WesBanco Fidelity Bancorp 7

  8. Slide 8: Western Pennsylvania growth plan

     With Fidelity we have 15 offices and a loan production office in Western PA.  Build upon community bank reputation of Fidelity.  Operate as a separate market with a market president.  Expect to grow to $1 billion in loans in next few years.  Add Production Staff – reducing back office staff. 

  9. Slide 9: Targeted M&A opportunities

     History of successful consolidations.  WesBanco is focused on targeted M & A opportunities in its higher growth metro markets within our market areas.  Management, technology/ back office and capital/ liquidity strength to compete for deals of interest.  Current stock valuation provides for ups

  10. Slide 10: Marcellus/Utica Shale Opportunity

    Marcellus/Utica Shale Opportunity Land owners are finding new wealth. Large cash payments for drilling rights. Land owners need financial advice.  Our products in the retail bank provide short-term solutions.  Our products in the wealth management function provide longer term solutions.  Priv

  11. Slide 11: 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 WSBC UBSI BBT PNC JPM UCFC PEBO SMMF Farmers NBC 0.0% 4.0% 8.0% 12.0% 16.0% WesBanco (105 Branches) Fidelity (13 Branches) Deposit Market Share in WV and OH M

  12. Slide 12: Trust and wealth management

     $3.2B of assets under management/custody.  Over 5,000 trust relationships.  Combined Trust and Assets Under Management ($B) Brokerage under one Management Fees ($MM) Net Securities Brokerage Revenue ($MM) management team.  10 locations in WV & OH $15.8 $17.2 $18.0 $14.9  Improving performance

  13. Slide 13: 2012 financial results summary

    Year Ended Year Ended ($ in thousands, except diluted earnings per share)00’s December December except per share data) 2012 2011 % Change Net Income excluding restructuring and $52,071 $43,809 18.86% merger related expenses * Diluted Earnings Per Share excluding restructuring and merger related $ 1.

  14. Slide 14: Core earnings volatility vs. peers

    Last 8 quarters core earnings volatility 1 43% 42% 41% 30% 26% 25% 23% Median: 24% 13% 11% 11% 9% 7% 6% STBA PRK FCF FRME PEBO MSFG CHCO ONB FNB CTBI UBSI FFBC Source: SNL Financial, Company filings Note: Financial data as of September 30, 2012 ¹ Volatility calculated as the standard deviation of ch

  15. Slide 15: Proven and disciplined acquirer and integrator

    WesBanco is a proven and disciplined acquirer and integrator, having successfully deployed capital to strategically grow franchise and create shareholder value Announce = Target HQ Branches Total deposits Total assets Dealvalue = Price / TBV Target date (City, state) @___ (mm) ____(Smm)_(Smm) ® Whol

  16. Slide 16: Tangible book value per share and cumulative dividends

    ($ per share) Tangible book value per share Cumulative dividends $18.59 $17.41 $15.71 $4.42 $14.24 $14.37 $4.24 $3.62 $12.54 $2.22 $3.06 $1.10 $14.17 $13.17 $11.44 $12.02 $12.09 $11.31 2007Y 2008Y 2009Y 2010Y 2011Y 2012Q3 Source: SNL Financial Note: Financial data as of September 30, 2012; Dividends

  17. Slide 17: Total risk based capital and tangible equity

    Total Risk Based Capital Tangible Equity to Tangible Assets * 16.00% 13.93% 14.14% 14.36% 14.45% 13.86% 14.00% 12.00% 10.00% 8.00% 6.68% 6.76% 7.00% 7.13% 6.77% 6.00% 4.00% 2.00% 0.00% 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 *See non-GAAP measures for additional information relating to the calculation of this

  18. Slide 18: Loan, deposit and capital growth

    $ 550 450 350 250 150 50 (50) 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12* Loan Growth Deposit Growth Capital Growth 18 *4Q’12 includes the 11/30/12 acquisition of Fidelity Bancorp.

  19. Slide 19: Securities portfolio

    Securities = $1.62 B  Average tax-equivalent ~26.7% of total assets portfolio yield of 3.06% at 12/31/12. US Govt.  WAL approx. 3.9 years; Agencies modified duration 3.3%. 5.9%  Over 50% unpledged. Agency  Sold approx. 60% or $130 Municipals, Mortgage- 36.8% million of Fidelity Backed & CMOs, 54

  20. Slide 20: Loan portfolio composition

    12/31/12 Total Portfolio Loans = $3.71 B Comm. Real Estate = Comm. & $1.86 B Ind., 12.9% LHFS, 0.5% Const & Dev. Consumer, 10.4% 7.6% Comm. Investor- HELOC, Real owned 7.5% Estate, 60.3% 50.1% Res. Real Owner- Estate, occupied 21.4% 29.3% 20

  21. Slide 21: Non performing assets and criticized loans

    10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 Total Non Performing Assets Total Criticized and Classified Loans 21

  22. Slide 22: Allowance for loan losses and non performing loans

    3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 Allowance for Loan Losses Non Performing Loans 22

  23. Slide 23: Non-interest income

    Other Inc. Insurance  Non-interest income contributed Securities brokerage Trust 28% of net revenue for the year Service charges & Fees 2012. ($MM)  Non-bank offerings (trust, $60.4 $62.6 $59.3 $60.2 insurance, securities) contributed $57.5 $25.2 million to 2012 revenue.  Electronic banking incom

  24. Slide 24: Investment highlights

     Strong regulatory capital.  Proven acquisition-oriented growth strategy.  Liquidity to provide for additional lending capacity.  Asset quality compares favorably with regional and national peers.  Diversity of earnings stream. 24

  25. Slide 25: Loans by region

    ) December 31, 2012 Commercial Retail Total % of Total Loans Upper Ohio Valley $ 473 $ 417 $ 890 25% North Central WV 251 204 455 12% Parkersburg 172 83 255 7% Kanawha Valley 69 55 124 3% Western PA 320 165 485 13% Total East Markets $ 1,285 $ 924 $ 2,209 60% Central Ohio 611 166 777 21% Southwest O

  26. Slide 26: Problem assets by region

    December 31, 2012 90 Day PD Non- TDR Other RE Total by % of Total & Accruing Accrual Owned Region Upper Ohio Valley $ 722 $ 4,807 $ 3,748 $ 129 $9,406 13% North Central WV 460 2,721 2,639 ---- 5,820 8% Parkersburg 310 1,693 1,491 267 3,761 5% Kanawha Valley 25 678 411 215 1,329 2% Western PA 1,353 2

  27. Slide 27: Operating earnings per share reconciliation

    ($ in thousands, except per share data) 12/31/12 12/31/11 Net Income $49,544 $43,809 Add: restructuring and merger related expense (net of tax) 2,527 --- Net Income excluding restructuring and merger related expense $52,071 $43,809 Earnings per common share – diluted $1.84 $1.65 Add: restructuring a

  28. Slide 28: Efficiency ratio reconciliation

    ($ in thousands, except per share data) 12/31/12 12/31/11 Non-interest expense $150,120 $140,295 Less: restructuring and merger related expense 3,888 --- Non-interest expense excluding restructuring and merger related expense $146,232 $140,295 Net Interest income (on a fully taxable equivalent basis

  29. Slide 29: Tangible equity to tangible assets reconciliation

    ($ in thousands) 4Q’11 1Q’12 2Q’12 3Q’12 4Q’12 Total shareholder’s equity $ 633,790 $ 642,001 $ 649,112 $ 659,322 $ 714,184 Less: goodwill & other intangible assets (283,150) (282,612) (282,088) (281,570) (324,465) Tangible equity $ 350,640 $ 359,389 $ 367,024 $ 377,752 $ 389,719 Total assets $5,536

  30. Slide 30: Net operating non-interest income reconciliation

    ($ in thousands) 2008 2009 2010 2011 2012 Non-interest Income $ 57,346 $ 64,589 $ 59,599 $ 59,888 $ 64,775 Less: Net Securities gains 1,556 6,046 3,362 963 2,463 Less: net gains/losses on other real estate owned and other assets (1,715) (747) (4,128) (1,290) (305) Net operating non-interest income $

  31. Slide 31: Return on average tangible equity reconciliation

    ($ in thousands) 12/31/11 YTD 12/31/12 YTD Net income $ 43,809 $ 49,544 Plus: amortization of intangibles 1,566 1,398 Net income before amortization of intangibles $ 45,375 $ 50,942 Average total shareholders’ equity $ 625,061 $ 656,684 Less: average goodwill & other intangibles (284,304) (284,270)

  32. Slide 32: WesBanco

    32 WesBanco By all accounts, better.

Wesbanco — Keefe, Bruyette & Woods One-on-One Meetings, February 5-6, 2013 on 6ix