Wesbanco, Inc. · NASDAQ:WSBC
Wesbanco — Shareholder Meeting (April 2009)
29 slides from Wesbanco's shareholder meeting presentation, Apr 15, 2009
Slide 1: Annual Shareholders' Meeting
Annual Shareholders’ Meeting April 15, 2009
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: Trust and Investment Services
Trust and Investment Services
Slide 4: Whither the Leveraged Consumer?
Whither the Leveraged Consumer? Source: Source: Bloomberg Bloomberg
Slide 5: PCE as a % of GDP Trend Change?
PCE as a % of GDP Trend Change? Source: Source: Commerce Commerce Dept. Dept. (Bloomberg) (Bloomberg)
Slide 6: Note Where the Savings Rate Went to in the Mid-1970's
Note Where the Savings Rate Went to in the Mid-1970’s. . . . . U.S. U.S. Personal Personal Savings Savings as as aa % % of of Disposable Disposable Personal Personal Income Income Source: Source: Bloomberg Bloomberg
Slide 7: How did we get here?
How did we get here? • 2004 SEC dropped net capital rule. • 2007 SEC dropped up-tick rule. • 2007 FASB adopts fair value accounting.
Slide 8: THe
THe NeDCE FUND NIVIGATION pe re — sul BA UE ERTL AVE LT WesBanco
Slide 9: 2008 YTD: The worst 10-year period since 1938
2008 YTD: The worst 10-year period since 1938 10-year moving annualized nominal returns 1835 – 2008* Past Past performance performance is is no no guarantee guarantee of of future future results results *Note: *Note: Returns Returns based based onon calendar calendar years; years; calendar calendar
Slide 10: U.S. equity usually bottoms before recession's end
U.S. equity usually bottoms before recession’s end (S&P 500 since 1969) Source: Source: Datastream, Datastream, UBS UBS Global Global Asset Asset Management Management calculations calculations NBER NBER (National (National Bureau Bureau of of Economic Economic Research) Research)
Slide 11: A Strong 2008 Performance
A Strong 2008 Performance despite the many challenges • Total shareholder return of 38% for FY 2008 • Successfully integrated largest acquisition to-date • Bolstered loan loss reserves by 29% • Opted to participate in TARP Capital Purchase Program • Exceptionally well-capitalized • Earned 5-Star Sup
Slide 12: WesBanco Operating Model
WesBanco Operating Model Growth by Centralized Local Delivery Acquisition Operations Provides Consistent Performance • Experienced management team • Incentives aligned to performance
Slide 13: Experienced & Stable Management Team
Experienced & Stable Management Team Years in Years with Executive Position Banking WSBC James Gardill Chairman of the Board 35 28 Paul Limbert President & CEO 31 31 Dennis Powell EVP & COO 35 4 Robert Young EVP & CFO 22 7 Peter Jaworski EVP & Chief Credit Officer 24 13 Jerome Schmitt EVP - Trust &
Slide 14: What Everyone Wants to Know
What Everyone Wants to Know • Capital Adequacy • Asset Quality • Liquidity
Slide 15: Risk Management: Strong Capital Base
Risk Management: Strong Capital Base Tangible Equity / Tangible Assets 15.00% Total Risk Based Capital • Total Risk-Based Capital for 2008 = 14.46% 12.00% • TARP recipient: $75MM 9.00% • Low portfolio impairment risk/no toxic investments 6.00% • Tangible equity is strong at 7.90%/TCE at 6.44% 3.00%
Slide 16: Securities Portfolio at Dec. 31, 2008
Securities Portfolio at Dec. 31, 2008 Securities = $935 MM =18% of assets • Minimal private label CMOs or corporate/ABS securities Agencies • 85% of municipal bonds are 5% insured; 80% are GO’s Mortgage- Municipals, • Average yield of 5.51% at backed & 38% year-end CMOs, 56% • Wtd. Avg. Life ~ 3.6 y
Slide 17: Credit Performance vs. Peers
Credit Performance vs. Peers* Net Charge-offs / Avg. Loans W SBC Peer* 0.90% 0.60% 0.30% 0.00% 2004 2005 2006 2007 2008 * Peer Group = Median of 14 banks with assets between $1-$10 B in WV, OH, IN, and West PA: FNB, UBSI, ONB, PRK, FCF, IFC, SRCE, STBA, FRME, FFBC, IBNK, MSFG, CHCO, PEBO; Data Sourc
Slide 18: Loan Portfolio as of Dec. 31, 2008
Loan Portfolio as of Dec. 31, 2008 Total Loans O/S = $3.6 B Comm. RE = $1.7 B Commercial & Industrial Construction Construction 14% Investor-Owned Investor-Owned & & Develop. Develop. Consumer 50% 50% 14% 14% 9% Commercial HELOC, 6% Real Estate, 47% Res. Real Estate, 24% Owner-Occupied Owner-Occupie
Slide 19: Risk Management: Liquidity
Risk Management: Liquidity • Liquid assets $936 MM securities portfolio – over 40% unpledged $141 MM cash and cash equivalents • Deposits $1.8 B in non-maturity deposits Only 15% jumbo/brokered deposits • FHLB line of credit $850 MM availability at year-end • Other Lines of credit with b
Slide 20: 2009 Initiatives
2009 Initiatives • Loans: Shift to C&I lending from real estate • Improve credit infrastructure – –– Add Add staff staff to to Special Special Assets, Assets, Credit Credit Risk Risk Management Management and and Secured Secured Credit Credit Admin. Admin. –– Additional Additional credit credit trai
Slide 21: WesBanco at a Glance
WesBanco at a Glance • Headquarters in Wheeling, West Virginia • Founded in 1870 • Assets: $5.6 billion • 32 banks/23 companies acquired in 25 years • Banking operations in WV, OH and PA 114 114 banking banking offices offices ++ Pittsburgh Pittsburgh LPO LPO 139 139 ATMs ATMs • Non-bank act
Slide 22: An Expanding Franchise in Contiguous Markets
An Expanding Franchise in Contiguous Markets: 109 banking offices • Banking operations in 37 counties • Wheeling, WV HQ for holding company Wheeling • Two regions organized into seven markets markets • Expanding along major highways to population centers (Columbus, Dayton, Cincinnati) • Ranked #1-3
Slide 23: Growth by Acquisition: A WSBC Core Competency
Growth by Acquisition: A WSBC Core Competency (MM) Total Assets $6.0 7 year Asset Growth • Four major acquisitions in $5.0 CAGR = 11.4% six years – assets more $4.0 than doubled since 2001 $3.0 • A history of successful consolidations/EPS growth $2.0 • Focusing on higher growth $1.0 metro markets an
Slide 24: Recent Acquisition Activity
Recent Acquisition Activity • AmTrust Bank Branches -- Announced January 23, 2009 – $600 million in deposits @3.5% deposit premium – Five offices in greater Columbus, will bring Columbus total to13 – WSBC will rank #9 in Columbus with a 2.3% deposit market share – Acquisition closed March 27, 2009 •
Slide 25: Yes, We Issued $75 Million of TARP Preferred
Yes, We Issued $75 Million of TARP Preferred… • TARP is a reasonably priced source of regulatory capital • Regulators encouraged participation by healthy banks • Provides greater safety in recessionary environment and flexibility to pursue available options • WesBanco used funds to: Purchase Purch
Slide 26: Significant Government Intervention
Significant Government Intervention • Troubled Troubled Asset Asset Relief Relief Program Program (TARP) (TARP) • Term Term Asset-Backed Asset-Backed Securities Securities Lending Lending Facility Facility (TALF) (TALF) • Temporary Temporary Liquidity Liquidity Guarantee Guarantee Program Program (T
Slide 27: 23+ Years of Strong, Stable Dividends
23+ Years of Strong, Stable Dividends $1.20 3:2 Split $0.90 2:1 Split 3:1 $0.60 Split $0.30 $0.00 1985 1988 1991 1994 1997 2000 2003 2006 • 23 year compound annual growth: 5.46% • Current yield: 6.10%11 and $1.12 per share annualized • Analysts’ projections cover dividend run rate • 20 year total sh
Slide 28: Stock Performance – Long-term Cumulative Return
Stock Performance – Long-term Cumulative Return 500% 400% 300% 200% 100% 0% -100% 9 5 9 1 3 5 7 7 9 1 3 7 9 1 3 7 5 '0 '9 '9 '0 '0 '0 '0 '7 '7 '8 '8 '8 '8 '9 '9 '9 '8 1Q WesBanco S & P 500
Slide 29: Questions?
Questions? Annual Shareholders Meeting April 15, 2009