WesBanco, Inc. · NASDAQ:WSBC
WesBanco — Investor Presentation (February 2017)
35 slides from WesBanco's investor presentation, Feb 8, 2017
Slide 1: Investor Presentation (Q1 2017)
J o h n I a n n o n e V i c e P r e s i d e n t , I n v e s t o r R e l a t i o n s 3 0 4 - 9 0 5 - 7 0 2 1 I n v e s t o r P r e s e n t a t i o n ( Q 1 2 0 1 7 ) ( f i n a n c i a l s a s o f Q 4 2 0 1 6 )
Slide 2: Forward-Looking Statements
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 cont
Slide 3: Forward-Looking Statements
F o r w a r d - l o o k i n g s t a t e m e n t s i n t h i s r e p o r t r e l a t i n g t o W e s B a n c o ’ s p l a n s , s t r a t e g i e s , o b j e c t i v e s , e x p e c t a t i o n s , i n t e n t i o n s a n d a d e q u a c y o f r e s o u r c e s , a r e m a d e p u r s u a n t t o t h
Slide 4: Who and Where We Are
* W h o a n d W h e r e W e A r e F o u n d e d i n 1 8 7 0 $ 9 . 8 b i l l i o n i n a s s e t s S t r o n g c o m m u n i t y b a n k i n g r o o t s H e a d q u a r t e r e d i n W h e e l i n g , W V T o p s h a r e a c r o s s l e g a c y a n d d i v e r s e , m a j o r m e t r o p o l i t a n
Slide 5: Key Differentiators
* K e y D i f f e r e n t i a t o r s E m e r g i n g f i n a n c i a l s e r v i c e s c o m p a n y w i t h a c o m m u n i t y b a n k a t i t s c o r e D i v e r s i f i e d r e v e n u e g r o w t h e n g i n e s w i t h a c r i t i c a l f o c u s o n c r e d i t q u a l i t y W e l l - b a l
Slide 6: Investment Rationale
* I n v e s t m e n t R a t i o n a l e W e l l - b a l a n c e d f i n a n c i a l s e r v i c e s c o m p a n y w i t h a d i v e r s i f i e d e a r n i n g s s t r e a m S t r o n g l e g a c y o f c r e d i t a n d r i s k m a n a g e m e n t D i s c i p l i n e d g r o w t h , b a l a n c e d
Slide 7: Long-Term Growth Strategies
Long-Term Growth Strategies > Diversified loan portfolio with a focus on Commercial and Industrial (C&l) = Increased productivity from and enhancements to the commercial lending team > Long history of strong wealth management capabilities = Proprietary mutual funds, and a century of trust experience
Slide 8: Long-Term Growth Strategies
* L o n g - T e r m G r o w t h S t r a t e g i e s D i v e r s i f i e d l o a n p o r t f o l i o w i t h a f o c u s o n C o m m e r c i a l a n d I n d u s t r i a l ( C & I ) I n c r e a s e d p r o d u c t i v i t y f r o m a n d e n h a n c e m e n t s t o t h e c o m m e r c i a l l e n d i
Slide 9: Diversified Loan Portfolio
* D i v e r s i f i e d L o a n P o r t f o l i o F o c u s o n e x p a n d i n g C o m m e r c i a l a n d I n d u s t r i a l ( C & I ) b u s i n e s s D e d i c a t e d C & I a n d B u s i n e s s B a n k i n g t e a m s i n a l l m a j o r m e t r o p o l i t a n m a r k e t s w h i l e r e t a
Slide 10: Strong Wealth Management Capabilities
P r i v a t e B a n k i n g $ 3 6 5 M M i n p r i v a t e b a n k i n g l o a n s a n d d e p o s i t s 1 , 3 0 0 + r e l a t i o n s h i p s G r o w t h o p p o r t u n i t i e s f r o m s h a l e - r e l a t e d p r i v a t e w e a l t h m a n a g e m e n t E x p a n s i o n i n K e n t u c k y a
Slide 11: Retail Bank Strategies
* R e t a i l B a n k i n g S t r a t e g i e s E f f i c i e n t f i n a n c i a l c e n t e r n e t w o r k w i t h e f f e c t i v e s t a f f m a n a g e m e n t a n d t e c h n o l o g y u t i l i z a t i o n s u p p o r t e d b y c e n t r a l i z e d , l o w - c o s t b a c k o f f i c e f u
Slide 12: Strong Culture of Expense Management
* S t r o n g C u l t u r e o f E x p e n s e M a n a g e m e n t F u n d a m e n t a l f o c u s o n e x p e n s e m a n a g e m e n t t o d e l i v e r p o s i t i v e o p e r a t i n g l e v e r a g e a n d i n c r e a s e s h a r e h o l d e r v a l u e “ R u l e - o f - t h u m b ” t a r g e t
Slide 13: Franchise Expansion
* F r a n c h i s e E x p a n s i o n T a r g e t e d a c q u i s i t i o n s i n e x i s t i n g m a r k e t s a n d n e w h i g h e r - g r o w t h m e t r o a r e a s C r i t i c a l , l o n g - t e r m f o c u s o n s h a r e h o l d e r r e t u r n A d e q u a t e c a p i t a l a n d l i q u i
Slide 14: Preparing for $10 Billion Asset Threshold
M e t h o d i c a l l y p h a s i n g i n t h e c o s t s o f p r o c e s s e s , p e r s o n n e l , a n d e n h a n c i n g o u r s t r o n g c o m p l i a n c e m a n a g e m e n t s y s t e m L i q u i d i t y , l o a n , a n d c a p i t a l s t r e s s t e s t i n g i n p r e p a r a t i o n f
Slide 15: Above Peer Group Performance
* A b o v e P e e r G r o u p P e r f o r m a n c e D i s c i p l i n e d e x e c u t i o n u p o n g r o w t h s t r a t e g i e s p r o v i d i n g a b o v e p e e r g r o u p p e r f o r m a n c e a c r o s s k e y o p e r a t i n g m e t r i c s N o t e : f i n a n c i a l d a t a a s o f 1 2 /
Slide 16: Return Value to Shareholders
R e t u r n i n g V a l u e t o S h a r e h o l d e r s F o c u s o n a p p r o p r i a t e c a p i t a l a l l o c a t i o n t o p r o v i d e f l e x i b i l i t y w h i l e c o n t i n u i n g t o e n h a n c e s h a r e h o l d e r v a l u e Q 4 2 0 1 6 d i v i d e n d p a y o u t r a t i o 4 0
Slide 17: Financial and Operational Highlights — Q4 2016
Financial and Operational Highlights — Q4 2016 > Net income up 12.7% and EPS of $0.59 (excluding merger-related costs) > Return on tangible common equity of 13.9% (excluding merger-related costs) > Converted and integrated YCB into WSBC during November 4'* weekend Some of the expected cost savings b
Slide 18: Financial and Operational Highlights – Q4 2016
* F i n a n c i a l a n d O p e r a t i o n a l H i g h l i g h t s – Q 4 2 0 1 6 N e t i n c o m e u p 1 2 . 7 % a n d E P S o f $ 0 . 5 9 ( e x c l u d i n g m e r g e r - r e l a t e d c o s t s ) R e t u r n o n t a n g i b l e c o m m o n e q u i t y o f 1 3 . 9 % ( e x c l u d i n g m e r g e
Slide 19: Financial Performance Summary (Non-GAAP)
F i n a n c i a l P e r f o r m a n c e S u m m a r y ( N o n - G A A P ) * e x c l u d e s m e r g e r - r e l a t e d e x p e n s e s a l l f i g u r e s a r e t h r e e m o n t h e n d i n g f i g u r e s ; d o n o t d i s c l o s e y e a r - t o - d a t e f i g u r e s N o t e : p l e a s e s e
Slide 20: Net Interest Margin
N e t I n t e r e s t M a r g i n D u r i n g 2 0 1 6 , n e t i n t e r e s t m a r g i n ( N I M ) w a s i m p a c t e d b y : I n c r e a s e d f u n d i n g c o s t s a s s o c i a t e d w i t h a h i g h e r p r o p o r t i o n o f F e d e r a l H o m e L o a n B a n k m e d i u m - t e r m b o
Slide 21: Interest Rate Sensitivity
I n t e r e s t R a t e S e n s i t i v i t y P o s i t i o n e d f o r a s s e t s e n s i t i v i t y i n r i s i n g r a t e s h o c k a n d r a m p e n v i r o n m e n t s * I m m e d i a t e C h a n g e i n I n t e r e s t R a t e s C h a n g e i n N e t I n t e r e s t I n c o m e f r o m B a
Slide 22: Securities Portfolio
S e c u r i t i e s P o r t f o l i o S e c u r i t i e s p o r t f o l i o r e p r e s e n t s ~ 2 4 % o f t o t a l a s s e t s ( c o m p a r e d t o ~ 2 9 % l a s t y e a r ) S c h e d u l e d m a t u r i t i e s a n d s e l e c t s a l e s o f s h o r t - t e r m , l o w e r - y i e l d i n g s
Slide 23: Diversified Revenue Generation: Non-Interest Income
D i v e r s i f i e d R e v e n u e G e n e r a t i o n : N o n - I n t e r e s t I n c o m e O p e r a t i n g n o n - i n t e r e s t i n c o m e c o n t r i b u t e d 2 4 % o f n e t r e v e n u e d u r i n g 2 0 1 6 Q 4 2 0 1 6 o p e r a t i n g n o n - i n t e r e s t i n c o m e r e f l e c t
Slide 24: Risk Management and Regulatory Compliance
S t r o n g l e g a c y o f c r e d i t a n d r i s k m a n a g e m e n t b a s e d u p o n c o n s e r v a t i v e u n d e r w r i t i n g s t a n d a r d s F i v e c o n s e c u t i v e “ o u t s t a n d i n g ” C R A r a t i n g s L i q u i d i t y , l o a n , a n d c a p i t a l s t r e s s t e
Slide 25: Stock Performance: Long-Term Cumulative Return
Stock Performance: Long-Term Cumulative Return 600% + 500% + 400% + 300% + 200% + 100% + 0% + (100%) / 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013 2016 —WSBC — S&P500 WwW Note: cumulative return since WSBC IPO compared to the cumulative return for the S&P500 Index over the same
Slide 26: Stock Performance: Long-Term Cumulative Return
S t o c k P e r f o r m a n c e : L o n g - T e r m C u m u l a t i v e R e t u r n * N o t e : c u m u l a t i v e r e t u r n s i n c e W S B C I P O c o m p a r e d t o t h e c u m u l a t i v e r e t u r n f o r t h e S & P 5 0 0 I n d e x o v e r t h e s a m e t i m e p e r i o d
Slide 27: Executive Management
E x e c u t i v e P o s i t i o n Y e a r s i n B a n k i n g Y e a r s a t W S B C J a m e s G a r d i l l C h a i r m a n o f t h e B o a r d 4 4 * 4 4 T o d d C l o s s i n P r e s i d e n t & C h i e f E x e c u t i v e O f f i c e r 3 2 3 R o b e r t Y o u n g E V P – C h i e f F i n a n c i a
Slide 28: Financial Performance Summary Trend – Annual
F i n a n c i a l P e r f o r m a n c e S u m m a r y T r e n d – A n n u a l * E f f i c i e n c y R a t i o ( 1 ) N e t I n c o m e ( 1 ) ( $ M M ) ( 1 ) e x c l u d e s m e r g e r - r e l a t e d e x p e n s e s N o t e : p l e a s e s e e t h e r e c o n c i l i a t i o n s t o G A A P r e s u
Slide 29: Diligent Focus on Credit Quality – Annual Trend
L o a n l o s s a l l o w a n c e d e c l i n e d u e t o i m p r o v e m e n t i n c r e d i t q u a l i t y L e g a c y L o a n L o s s A l l o w a n c e t o L e g a c y L o a n s N o n - P e r f o r m i n g A s s e t s t o T o t a l A s s e t s N e t C h a r g e - O f f s a s % o f A v e r a g e
Slide 30: Reconciliation: Efficiency Ratio
R e c o n c i l i a t i o n : E f f i c i e n c y R a t i o * N o t e : “ e f f i c i e n c y r a t i o ” i s n o n - i n t e r e s t e x p e n s e e x c l u d i n g r e s t r u c t u r i n g a n d m e r g e r - r e l a t e d e x p e n s e d i v i d e d b y t o t a l i n c o m e ; F T E r e p r e s
Slide 31: Reconciliation: Net Income and EPS (Diluted)
R e c o n c i l i a t i o n : N e t I n c o m e a n d E P S ( D i l u t e d ) * N o t e : Y o u r C o m m u n i t y B a n k s h a r e s m e r g e r c l o s e d S e p t e m b e r 2 0 1 6 , E S B F i n a n c i a l m e r g e r c l o s e d F e b r u a r y 2 0 1 5 , a n d F i d e l i t y B a n c o r p m
Slide 32: Reconciliation: Return on Average Assets
* ( 1 ) t h r e e - m o n t h n e t i n c o m e f i g u r e s a r e a n n u a l i z e d N o t e : Y o u r C o m m u n i t y B a n k s h a r e s m e r g e r c l o s e d S e p t e m b e r 2 0 1 6 , E S B F i n a n c i a l m e r g e r c l o s e d F e b r u a r y 2 0 1 5 , a n d F i d e l i t y B a n c
Slide 33: Reconciliation: Return on Average Tangible Equity
* ( 1 ) t h r e e - m o n t h n e t i n c o m e f i g u r e s a r e a n n u a l i z e d ; a m o r t i z a t i o n o f i n t a n g i b l e s t a x e f f e c t e d a t 3 5 % N o t e : Y o u r C o m m u n i t y B a n k s h a r e s m e r g e r c l o s e d S e p t e m b e r 2 0 1 6 , E S B F i n a n c i
Slide 34: Reconciliation: Operating Non-Interest Income
R e c o n c i l i a t i o n : O p e r a t i n g N o n - I n t e r e s t I n c o m e * N o t e : Y o u r C o m m u n i t y B a n k s h a r e s m e r g e r c l o s e d S e p t e m b e r 2 0 1 6 , E S B F i n a n c i a l m e r g e r c l o s e d F e b r u a r y 2 0 1 5 , a n d F i d e l i t y B a n c o
Slide 35: Reconciliation: Legacy Loan Loss Allowance to Total Legacy Loans
* N o t e : Y o u r C o m m u n i t y B a n k s h a r e s m e r g e r c l o s e d S e p t e m b e r 2 0 1 6 , E S B F i n a n c i a l m e r g e r c l o s e d F e b r u a r y 2 0 1 5 , a n d F i d e l i t y B a n c o r p m e r g e r c l o s e d N o v e m b e r 2 0 1 2 R e c o n c i l i a t i o n : L