Wesbanco, Inc. · NASDAQ:WSBC
Wesbanco — Shareholder Meeting (April 2010)
27 slides from Wesbanco's shareholder meeting presentation, Apr 21, 2010
Slide 1: Annual Shareholders' Meeting: 2009 Year In Review
WesBanco, Inc. Annual Shareholders’ Meeting 2009 Year In Review April 21, 2010 1
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 at a Glance
WesBanco at a Glance • Headquarters in Wheeling, West Virginia • Assets: $5.4 billion • Founded in 1870 • 32 banks/23 companies acquired in 25 years • Banking operations in WV, OH and Western PA 114 banking offices + Pittsburgh, PA Loan Office 138 ATM’s • Non-bank activities include: Wealth ma
Slide 4: An Expanding Franchise in Contiguous Markets
An Expanding Franchise in Contiguous Markets: 114 banking offices Springfield Columbus Dayton Wheeling Huntington 4
Slide 5: 2009 Year in Review
2009 Year in Review 1. Started 2009 with TARP. 2. Purchased 5 AmTrust offices with $600 million in deposits. a)Moved into top 10 in Columbus Market share. 3. Opened new branch office in Morgantown, WV. 4. Redeemed TARP preferred stock without issuance of any new common shares. 5
Slide 6: 2009 Year in Review (con't.)
2009 Year in Review (con’t.) 5. Repurchased warrants from US Treasury. 6. Reduced staffing by 108 full time equivalent employees. 7. Began balance sheet restructuring for rising interest rates. 8. FDIC Insurance premiums increased $8.1 mil. 9. Loan loss provision increased $17.7 mil. 10.Net Charge-o
Slide 7: WesBanco Stock Performance Chart
WesBanco Stock Performance Chart January 1, 2007 thru December 31, 2009 100-based Index Analysis: WSBC vs. Peers/IXBK (3 years) IBNK Peers WSBC 105 90 75 60 45 30 N ov -07 N ov -08 N ov -09 M ar-07 M ay -07 J u l- 0 7 J an-08 M ar-08 M ay -08 J u l- 0 8 J an-09 M ar-09 M ay -09 J u l- 0 9 Sep-07 Sep
Slide 8: WSBC Historical Price / Forward Earnings
WSBC Historical Price / Forward Earnings 8
Slide 9: State of Financial Industry
State of Financial Industry Based on all FDIC Insured Banks 2009 2008 2007 Earnings $12.5B $4.5B $100B ROA 0.09% 0.03% 0.81% ROE 0.90% 0.35% 7.75% Net Charge offs to loans 2.49% 1.29% 0.59% 9
Slide 10: State of Financial Industry
State of Financial Industry FDIC Insurance fund had a negative balance in spite of assessments. Industry loan balances decreased during 2009. Net charge-offs to loans increased to 2.49% in 2009 compared to 1.29% in 2008. 10
Slide 11: State of Financial Industry
State of Financial Industry 707 Banks accepted TARP funds. 64 have fully repaid their TARP funds. 8 have made partial payments. Of 524 public financial institutions, 275 have cut, omitted or discontinued their dividends since 2008. Of 8,012 FDIC insured banks – 14% are under formal enforce
Slide 12: WesBanco Compared to Industry 2009
WesBanco Compared to Industry 2009 WesBanco Industry ROA 0.43% 0.09% ROE 3.73% 0.90% Change in Loan Balances -3.7% -7.5% Net Charge-off % 1.10% 2.49% Non-performing asset ratio 1.65% 3.32% 12
Slide 13: Henderson Road, Columbus OH
Henderson Road, Columbus OH 13
Slide 14: Suncrest Office, Morgantown WV
Suncrest Office, Morgantown WV 14
Slide 15: What Everyone Wants to Know - Again
What Everyone Wants to Know - Again • Capital Adequacy • Asset Quality • Liquidity 15
Slide 16: Risk Management: Strong Capital Base
Risk Management: Strong Capital Base 15.00% 12.00% 9.00% 6.00% 3.00% 0.00% 2005 2006 2007 2008 2009 Tangible Equity / Tangible Assets Total Risk Based Capital Data Source = SNL Financial 16
Slide 17: Loan Portfolio = $3.47B
Loan Portfolio = $3.47B Comm. & Ind. 13% Consumer 8% HELOC, 7% Comm. Real Investor- Owned Owner- Estate, 51% 54% Occupied 28% Res. Real Estate, 21% 17
Slide 18: Strong Asset Quality Relative to Peers
Strong Asset Quality Relative to Peers Annual Net Charge-offs / Average Loans WSBC National Peers* 2.52% 2.19% 1.79% 1.34% 1.17% 1.59% 1.58% 0.96% 0.57% 0.68% 4Q'08 1Q'09 2Q'09 3Q'09 4Q'09 • National Peer Group = Median of 107 banks nationwide with assets between $2-$10 B. 18 The 4Q ’09 peer data ha
Slide 19: Securities = $1.26 B ~23% of Total Assets
Securities = $1.26 B ~23% of Total Assets Agencies, Equities & 15.1% Other, 0.8% Agency Municipals, Mortgage- 28.8% Backed & CMOs, 55.3% 19
Slide 20: Liquidity Significantly Improved with $600 Million of AmTrust Deposits
Liquidity Significantly Improved with $600 Million of AmTrust Deposits • Loan to Deposit Ratio improved to 87% at 12/31/09, down from 103% at year- end 2008. • Reducing reliance on wholesale funding (borrowings & brokered deposits) as funds mature - < 13% of total assets at year-end. 20
Slide 21: Liquidity Significantly Improved with $600 Million of AmTrust Deposits
Liquidity Significantly Improved with $600 Million of AmTrust Deposits • Securities portfolio of $1.26B highly liquid; 55.5% unpledged and $20.8 million in net unrealized gains at year-end. • Lines of credit Over $914.6 million FHLB availability at 12/31/09. Holding company line undrawn at $25 m
Slide 22: Wealth Management Services
Wealth Management Services Assets Under Management ($B) $3.0 $3.1 $2.6 $2.7 $2.4 2005 2006 2007 2008 2009 22
Slide 23: 2010 Initiatives
2010 Initiatives • Continue to restructure balance sheet to promote efficiency and for anticipated increase in overall interest rates. • Maintain regulatory capital ratios in excess of “unofficial” well capitalized ratios. • Continue improvement of net interest income through introduction of new pro
Slide 24: 2010 Initiatives (con't.)
2010 Initiatives (con’t.) • Improve credit quality. • Improve non-interest fee income through introduction of new banking products and increased sales of non- traditional products. • Control non-interest expenses through improved monitoring process and technology initiatives. 24
Slide 25: Why WesBanco?
Why WesBanco? • Earnings derived from diversified product lines, markets and customers. • Responsive to local market conditions and opportunities. • Proven ability to manage risk. • Financially conservative. • Strong regulatory capital. 25
Slide 26: Stock Performance – Long-term Cumulative Return
Stock Performance – Long-term Cumulative Return Cumulative Returns - 1978 to 1Q 2010 WSBC S&P 500 500% 450% 400% 350% 300% 250% 200% 150% 100% 50% 0% 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 1Q 2010 26
Slide 27: Questions?
Questions? Annual Shareholders’ Meeting April 21, 2010 27