Wesbanco, Inc. · NASDAQ:WSBC
Wesbanco — Boenning and Scattergood Investment Conference (November 2009)
27 slides from Wesbanco's conference presentation, Nov 9, 2009
Slide 1: Boenning and Scattergood Investment Conference
Boenning and Scattergood Investment Conference November 9, 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: WesBanco at a Glance
WesBanco at a Glance • Headquarters in Wheeling, West Virginia • Assets: $5.56 billion • Founded in 1870 • 32 banks/23 companies acquired in 25 years • Banking operations in West Virginia, Ohio and Western Pennsylvania 114 114 banking banking offices offices ++ Pittsburgh, Pittsburgh, PA PA Loan
Slide 4: Investment Rationale
Investment Rationale Stability, Diversity and Capital Strength • Strong regulatory capital • Proven acquisition-oriented growth strategy • Improved liquidity • Asset quality compares favorably with regional and national peers • Diversity of earnings stream
Slide 5: Strong Regulatory Capital Base
Strong Regulatory Capital Base Total Capital to Risk-Weighted Assets Ratio 18.0% 14.46% 13.95% 13.43% 15.0% 12.59% 12.23% 12.0% 9.0% 6.0% 3.0% 0.0% 3Q08 4Q08 1Q09 2Q09 3Q09 Common Equity TARP Capital Purchase Trust Preferred Tier 2 Capital Program Securities 3Q08 4Q08 1Q09 2Q09 3Q09 Tier 1 Leverage
Slide 6: Growth by Acquisition: A WSBC Core Competency
Growth by Acquisition: (MM) A WSBC Core Competency $6.0 7.5 year Asset Growth $5.0 CAGR = 11.8% • Focused on higher growth metro markets and $4.0 enhanced market share $3.0 • Five acquisitions in seven years – assets more than $2.0 doubled since 2001 $1.0 • A history of successful $0.0 consolidation
Slide 7: 2009 Acquisition Activity
2009 Acquisition Activity 5 AmTrust Bank Branches • Five offices in Greater Columbus; brings Columbus total to 13 • Completed March 27, 2009 • WSBC now ranks #9 in Columbus market (up from #21) with a 2.3% deposit market share • $599 million in deposits @ 3.5% deposit premium • Invested in $550 mill
Slide 8: 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 3Q 2009 from 103% at year-end 2008 • Reducing reliance on wholesale funding (borrowings & brokered deposits) as funds mature • Securities portfolio of $1.4B highly liquid; 58% unpledged
Slide 9: An Expanding Franchise in Contiguous Markets: 114 banking offices
An Expanding Franchise in Contiguous Markets: 114 banking offices • Ranked #1-3 in deposit market share in 15 counties out of 37* • Expanding along major highways to population centers (Columbus, Dayton, Cincinnati) • Organized into seven markets * SNL September 2009 Deposit Market Share Data
Slide 10: Loan Portfolio as of September 30, 2009
Loan Portfolio as of September 30, 2009 Total Loans = $3.51 B Comm. Real Estate = Comm. Comm. & & Ind. Ind. $1.76 B 13% 13% Const & Dev. Consumer Consumer 14% 9% 9% Comm. Comm. Real Real Estate, Estate, 50% 50% Owner- Owner- HELOC, HELOC, 7% 7% Investor- Investor- Occupied Occupied Owned Owned 36% 3
Slide 11: Conservative Exposure to Potential Problem Loan Areas
Conservative Exposure to Potential Problem Loan Areas WSBC is Below Regulatory CRE Guidelines C&D + Investor-owned CRE = 285% of Total Risk-Based Capital Exposure1 % of Regulatory ($Millions) RBC2 Guideline Land, Construction & Development $ 300.8 70.1% 100% Investor-Owned Commercial 603.5 140.7% N/
Slide 12: Non-Performing Loans by Loan Category
Non-Performing Loans* by Loan Category ($ in MMs) 1Q’09 2Q’09 3Q’09 Land, Construction & Development $ 7.2 $ 9.4 $ 9.4 Investment Property 27.4 29.8 23.9 Owner Occupied 19.5 21.6 20.3 Total CRE Non-Performing Loans 54.1 60.8 53.6 Commercial & Industrial 8.5 11.1 15.5 Residential & Home Equity 12.9 1
Slide 13: Strong Asset Quality Relative to Peers
Strong Asset Quality Relative to Peers NPA ++ ≥≥ 90 NPA 90 PD PD Loans Loans // Total Total Loans Loans ++ OREO OREO Ann. Ann. Net Net Charge-offs Charge-offs // Avg. Avg. Loans Loans WSBC National Peers* WSBC National Peers* 2.21% 4.77% 3.71% 3.11% 1.40% 2.42% 1.84% 0.81% 1.58% 0.78% 2.67% 2.82% 2.
Slide 14: Credit Risk Management
Credit Risk Management • Centralized credit administration (commercial and retail) • Senior credit officers in each region, report directly to Chief Credit Officer • Commercial banking executives in each region, & support staff in each market providing localized decision making • Credit analyst supp
Slide 15: Improving Credit Infrastructure: 2009 Initiatives
Improving Credit Infrastructure: 2009 Initiatives • Added more staff to Special Assets • Conducted skills assessment to identify and prioritize opportunities for lender development • Initiated formal credit training program for commercial & retail sales force • Centralized underwriting and administr
Slide 16: Financial Results
WesBanco Financial Results
Slide 17: Quarterly Performance Comparison
Quarterly Performance Comparison ($000’s except per share data) 3Q 2009 2Q 2009 LQ %∆ Net Income $5,442 $5,744 - 5.3% Net Income Available to $2,321 $4,687 - 50.5% Common Shareholders Diluted Earnings Per Share $0.09 $0.18 - 50.0% Loan Loss Provision $16,200 $10,269 + 57.8% Return on Average Assets
Slide 18: Nine Months' Performance Comparison
Nine Months’ Performance Comparison ($000’s except per share data) 2009 2008 YOY %Δ Net Income $16,636 $32,296 - 48.5% Net Income Available to $11,403 $32,296 - 64.7% Common Shareholders Diluted Earnings Per Share $0.43 $1.22 - 64.8% Loan Loss Provision $36,019 $17,605 +104.6% Return on Average Asse
Slide 19: Net Interest Margin
Net Interest Margin NIM Yield on Earning Assets Cost of Funds 7.00% 6.18% 6.04% 6.00% 5.65% 5.24% 5.30% 5.00% 4.00% 3.70% 3.71% 3.47% 3.17% 3.35% 3.00% 2.80% 2.65% 2.52% 2.34% 2.21% 2.00% 1.00% 0.00% 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 NIM decrease in 2Q 09 due to increased liquidity from branch acquisiti
Slide 20: Stable Deposit Mix
Stable Deposit Mix Time Deposits Savings MMDA Interest Bearing Non-Interest • 2009 2009 deposits deposits impacted impacted by by recent recent 100% acquisition acquisition of of AmTrust AmTrust branches branches with with higher higher CD CD levels levels 80% • Continued Continued initiatives initi
Slide 21: Securities Portfolio at September 30, 2009
Securities Portfolio at September 30, 2009 Securities = $1.42 B • Average portfolio yield of 4.57% YTD ~26% of total assets • WAL approx. 4 years • Over 58% unpledged Agencies, 16% • Minimal private label CMOs or corporate/ABS securities Agency Municipals, Municipals, • Net unrealized securities gai
Slide 22: Interest Rate Sensitivity
Interest Rate Sensitivity % Change in Net Interest Income from Base Over One Year Immediate Change in Interest Rates Dec. 31, 2008 Sept. 30, 2009 Up 2% Rate Shock -0.5% -3.9% Up 2 % Rate Ramp +0.7% +1.1% Up 1% Rate Shock +0.8% +0.4% Recent strategies focus on becoming more interest rate neutral subs
Slide 23: Growing & Diversified Noninterest Income
Growing & Diversified Noninterest Income* • Noninterest Noninterest income income contributed contributed Trust Securities services (Net) 28.6% of 11stst 99 mo. 28.6% of mo. ‘09 ‘09 revenue. revenue. ($MM) Insurance (Net) Gain on Mtg. Loan Sales • Deposit Deposit service service charges charges and
Slide 24: Wealth Management Services
Wealth Management Services • $2.6B of assets under management & administration • Over 5,000 trust relationships • 3 locations in WV & 1 in Assets Under Management ($B) Columbus, OH Management Fees ($MM) • Improving performance $15.0 $16.2 $14.9 quarter over quarter as asset $14.3 $13.6* values recov
Slide 25: One Year Stock Price Changes
One Year Stock Price Changes WSBC vs. NASDAQ Bank Index (IXBK)
Slide 26: Why WesBanco?
Why WesBanco? • Earnings derived from diversified product lines, markets and customers • Efficient controls and delivery channels • Responsive to local market conditions and opportunities • Proven ability to manage risk • Financially conservative
Slide 27: ms oS aA D =
ms oS aA D =
Wesbanco — Boenning and Scattergood Investment Conference (November 2009) on 6ix