Wesbanco, Inc. · NASDAQ:WSBC

Wesbanco — Mid-Atlantic Super-Community Bank Conference 2007

28 slides from Wesbanco's conference presentation, Nov 5, 2007

  1. Slide 1: Mid-Atlantic Super-Community Bank Conference

    Mid­Atlantic Super­Community Bank Conference Philadelphia, PA November 5, 2007

  2. Slide 2: Forward Looking Statements

    Forward Looking Statements This presentation contains certain forward­looking statements, including certain plans, expectations, goals, and projections, and including statements about the benefits of the merger between WesBanco and Oak Hill, which are subject to numerous assumptions, risks, and unce

  3. Slide 3: WesBanco Corporate Profile

    WesBanco Corporate Profile* • NASDAQ Global Stock Market: WSBC • Founded in 1870 in Wheeling, WV • $4.0 billion in assets • 78 offices, 1 loan production office, & 111 ATM’s • $3.1 billion in trust and investment management assets • Market capitalization: $515 million* • 2007 average daily shares tr

  4. Slide 4: Strategy / Business Plan - 2007

    Strategy / Business Plan ­ 2007 Ø Remix balance sheet – fewer lower yielding residential mortgages and investment securities in flat yield curve environment. Reduction in non­earning assets – cash and due from banks. Ø Remix customers – fewer single service retail customers from thrift acquisitions;

  5. Slide 5: Strategy / Business Plan - 2007 (Cont.)

    Strategy / Business Plan – 2007 (Cont.) Ø Focus on restructuring commercial lending and growing pipeline, while maintaining credit quality. Ø New leadership installed first quarter; restructuring of lending teams in second quarter. Implemented new origination technology in second quarter to improve

  6. Slide 6: Strategy / Business Plan - 2007 (Cont.)

    Strategy / Business Plan – 2007 (Cont.) Ø Grow non­interest income – as of 9/30, non­interest income at 30% of total revenues, improving over 2005 when it was 23% of revenues. Ø Improvement to deposit fee income from overdraft and debit card programs. Ø Trust fee revenue enhancements. Ø Increases fr

  7. Slide 7: Wealth Management Profile

    Wealth Management Profile Ø Market value of trust assets of approximately $3.1 billion. Ø Currently manage over 5,000 trust relationships. Ø Staff of over 70 individuals including Attorneys, CPAs and Chartered Financial Analysts. Ø Professional services include: • Trust services • Investment service

  8. Slide 8: Oak Hill Financial, Inc. Overview

    Oak Hill Financial, Inc. Overview Overview Markets w Founded in 1902 w 36 branches and 1 loan production w Assets of $1.286 billion office over 16 counties w Central and Southern Ohio w Key Counties : Jackson, Scioto, Lawrence, Hamilton Financial Highlights (as of 6/30/07) w Net Loans ($M) $ 1,025 w

  9. Slide 9: Creates a Powerful Community Bank Franchise

    Creates a Powerful Community Bank Franchise Pro Forma Financial Highlights Projected Population Growth* (% ) Assets: $ 5.4 Billion 4.00 2.72 2.17 Deposits: $ 4.0 Billion 2.00 Branches: 114 0.00 (2.00) (1.16) (4.00) WSBC OAKF Ohio Median 2006 Household Income $60,000 $49,467 $45,000 $39,879 $42,159 $

  10. Slide 10: Transaction Summary

    Transaction Summary Consideration Mix: 90% stock / 10% cash Exchange Ratio: 1.256 WSBC shares for each OAKF share (fixed) Cash Consideration: $38.00 per share Stock Options: Cashed out or rolled over Transaction Value: $195 million (including merger­related expenses ­ at time of announcement) Per sh

  11. Slide 11: Transaction Rationale

    Transaction Rationale w Top 15 deposit market share in Ohio Doubles Ohio Market Share w 51% of pro forma deposits located in Ohio w Connects and fills the geographic gap in WesBanco’s branch network w Doubles presence in growth markets w Significant increase in metropolitan deposit composition Enhan

  12. Slide 12: Pricing Consistent with Recent Transactions

    Pricing Consistent with Recent Transactions Transaction Multiples WSBC / OAKF Median (3) Price / LTM Earnings 19.2 x 24.3 x Price / Forward Earnings (1) 17.0 21.0 Price / Tangible Book Value 232 % 272 % Core Deposit Premium (2) 14.1 22.7 WSBC Pro­Forma Impact Impact Analysis Per Share: 2008 Est. EPS

  13. Slide 13: Significant Market Share Gain

    Significant Market Share Gain STATE: Ohio Total Total Deposits Market Branch in Market Share Rank Institution Count ($000) (%) 1 National City Corp. (OH) 410 30,937,085 14.79 2 Fifth Third Bancorp (OH) 393 25,880,367 12.38 3 Huntington Bancshares Inc. (OH) 446 24,898,042 11.91 4 KeyCorp (OH) 226 22,

  14. Slide 14: Disposition of Underperforming Loans

    Disposition of Underperforming Loans Ø As part of the transaction, Oak Hill anticipates disposition of approximately $50 million in identified underperforming loans and REO. Ø After the sale, it is expected that Oak Hill’s non­performing assets should approximate $3.5 million or 0.27% of total asset

  15. Slide 15: Oak Hill Financial, Inc. Profile

    Oak Hill Financial, Inc. Profile 6/30/2007 Loans (Dollars in thousands) Year Ended December 31, 6/30/2007 Balance Sheet Items 2004 2005 2006 2007 Total Assets $1,083,040 $1,241,058 $1,275,635 $1,286,611 Consumer & Other Residential R.E. 13.4% 22.0% Total Net Loans 909,392 1,011,755 1,018,073 1,024,7

  16. Slide 16: Year-to-Date 2007 Financial Results

    Year­to­Date 2007 Financial Results YTD YTD (dollars in thousands) 9/30/2007 9/30/2006 % CHG Net income $ 34,005 $ 28,399 19.7% EPS ­ diluted $ 1.62 $ 1.30 24.6% Return on assets 1.14% 0.91% 25.3% Return on equity 11.12% 9.11% 22.1% Return on tangible equity 17.19% 14.50% 18.6% Net interest margin 3

  17. Slide 17: 3rd Quarter 2007 Financial Results

    3rd Quarter 2007 Financial Results 3rd Quarter 3rd Quarter (dollars in thousands) 2007 2006 % CHG Net income $ 9,763 $ 11,554 (15.5%) EPS ­ diluted $ 0.47 $ 0.53 (11.3%) Return on assets 0.98% 1.13% (13.3%) Return on equity 9.51% 10.97% (13.3%) Return on tangible equity 14.68% 16.87% (13.0%) Net int

  18. Slide 18: 3rd Quarter 2007 Financial Results

    3rd Quarter 2007 Financial Results Ø Decrease in net interest income due to competitive loan and deposit pricing pressure, and overall flat or inverted yield curve. Ø Increase in non­interest income of $0.7 million or 6.3%. Trust fees up 6.2% and service charge income up 5.5%. Ø Non­interest expense

  19. Slide 19: Credit Quality

    Credit Quality In thousands Non­performing In thousands Net charge­offs $25,000 assets 0.60% $2,000 0.60% $1,800 $20,000 $1,600 0.49% $1,400 0.40% 0.40% $15,000 $1,200 0.38% 0.35% 0.36% 0.34% $1,000 $10,000 $800 0.20% 0.24% 0.25% 0.20% $600 0.19% $5,000 $400 0.16% 0.17% $200 $0 0.00% $0 0.00% 3Q06 4

  20. Slide 20: Interest Rate Risk

    INTEREST RATE RISK Change in Interest Change in Net Interest Rates (basis pts.) Income from Base (1) 9/30/2007 9/30/2006 Down 100 Rate Shock 3.00% 0.90% Down 200 Rate Shock 4.60% ­0.48% Up 200 Rate Ramp ­7.70% ­1.23% Up 200 Rate Shock ­2.70% ­3.13% Up 100 Rate Shock ­3.70% ­1.44% (1) For the next 12

  21. Slide 21: Commercial Real Estate Concentration Test

    COMMERCIAL REAL ESTATE CONCENTRATION TEST Concentration Category $000s Committed % of Capital % of Loans Land & Land Development $ 75,400 15% 2.2% Construction: 1­4 Family Owner Contracted 22,900 5% 0.7% 1­4 Family Spec & Development 78,100 15% 2.3% Multi Family 40,500 8% 1.2% Commercial 92,600 18%

  22. Slide 22: Geographic Distribution of Selected Real Estate Loans

    GEOGRAPHIC DISTRIBUTION OF SELECTED REAL ESTATE LOANS Upper Central Central West PA & Loan Type OV WV OH OH Other Commercial: Land & Land Development 33% 33% 27% 5% 2% 1­4 Family Spec & Development 5% 17% 62% 5% 11% Commercial Construction 33% 20% 10% 4% 33% Multi­Family Property 11% 26% 9% 42% 12%

  23. Slide 23: Credit Quality of 1-4 Family Residential Mortgages

    CREDIT QUALITY OF 1­4 FAMILY RESIDENTIAL MORTGAGES % Total Residential % Total Average Age Loan Characteristics Mortgages Loans (Months) % Past Due Low bureau scores when made (1) 5.4% 1.6% 46 2.3% Low / moderate income programs 4.3% 1.3% 25 1.2% Purchased pools 6.8% 2.0% 42 0.5% Bureau scores not t

  24. Slide 24: Dividends Per Share

    Dividends Per Share $1.10 $0.94 2002 2003 2004 2005 2006 2007 Annualized 1) 22 consecutive years of dividend increases. 2) Current dividend yield of approximately 4.6% (at 10/22/07). 3) 17% increase in dividends since 2002.

  25. Slide 25: Return to Shareholders

    Return to Shareholders (in thousands) 1,600 12.00% 9.62% 9.34% 9.38% 1,400 8.76% 9.13% 8.46% 10.00% 1,200 8.21% 9.75% 8.00% 1,000 8.53% 7.69% 7.65% 6.00% 800 6.87% 6.33% 6.75% 600 4.00% 400 2.00% 200 ­ 0.00% 06 01 02 03 04 05 7 00 20 20 20 20 20 20 /2 30 9/ Shares repurchased Tier I leverage Tangibl

  26. Slide 26: WesBanco Peer Group - 2007 Stock Price Performance

    WesBanco Peer Group – 2007 Stock Price Performance Pricing as of on 10/22/2007 Stock Closing Closing Price Price Price Change Institution 12/31/2006 10/22/2007 (%) FirstMerit Corporation $24.14 $18.57 (23.07) % Old National Bancorp $18.92 $16.43 (13.16) United Bankshares, Inc. $38.65 $28.18 (27.09)

  27. Slide 27: Key Investor Messages

    Key Investor Messages Ø Increased dividend in February 2007 – 22 consecutive years of dividend increases. Dividend yield of 4.6% (at 10/22/07). Ø Tangible capital supportive of share repurchases. § Repurchased approximately 1.7 million shares in last two years, with 736,600 shares remaining in curre

  28. Slide 28: Additional Information

    Additional Information In connection with WesBanco’s proposed merger with Oak Hill, WesBanco has filed a registration statement on Form S­4 with the Securities and Exchange Commission containing a joint proxy statement/prospectus dated October 10, 2007, which has been mailed to both WesBanco and Oak

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