NEWS FOR IMMEDIATE RELEASE
October 21, 2014 For Further Information Contact:
Todd F. Clossin
President and Chief Executive Officer
or
Robert H. Young
Executive Vice President and Chief Financial Officer
(304) 234-9000
NASDAQ Symbol: WSBC
Website: www.wesbanco.com
WesBanco Announces 17% Increase in Third Quarter Net Income
Wheeling, WV… Todd F. Clossin, President and Chief Executive Officer of WesBanco, Inc. (NASDAQ Global Market: WSBC), a Wheeling, West Virginia based multi-state bank holding company, today announced an increase in net income and related earnings per share for the three and nine months ended September 30, 2014.
Net income for the three months ended September 30, 2014 was $18.2 million, compared to $15.5 million for the third quarter of 2013, representing an increase of 17%, while diluted earnings per share were $0.62, compared to $0.53 per share for the 2013 quarter, representing an increase of 17%. The third quarter results included a pre-tax charge of $1.4 million relating to the prepayment of a repurchase agreement. See the non-interest income discussion for additional information. For the nine month period ended September 30, 2014, net income totaled $53.5 million, compared to $48.6 million for the same period of last year, representing an increase of 10%, while diluted earnings per share totaled $1.82 as compared to $1.66 for 2013, representing an increase of 10%. The increase in net income improved the return on average assets to 1.15% from 1.07% in the year-to-date period of last year. Return on assets and return on tangible equity for WesBanco remain well above second quarter 2014 peer group averages, the most recent available.
Mr. Clossin commented, "Loan growth has accelerated. In the third quarter loans increased 2.2% and, over the last year, by 5.1%. The loan production team has focused their efforts on continuous improvements that have provided significant increases in loan production. As a result, and through the success of the many revenue generating and expense control activities throughout WesBanco, we are very pleased with third quarter net income. Net interest income has increased in each of the last five quarters as earning assets increase and cost of funds decline. Year-over-year the provision declined as overall credit quality improved. Expenses have been stable, even as the bank grows, due to our strong discipline over expense control. WesBanco is continuing a track record of consistent success.”
Financial Condition
Total assets at September 30, 2014 increased 2.3% or $140.1 million from September 30, 2013, primarily due to loan growth. Portfolio loans increased $195.2 million or 5.1% over the last year and 2.2% in the third quarter of 2014 compared to the second quarter of this year. Loan growth was achieved through $1.4 billion in loan originations over the last twelve months. Although somewhat depressed in the first quarter due to the challenging weather and economy, loan originations increased 49.6% in the third quarter compared to the first quarter and are now at levels similar to 2013 production. Loan growth was driven by increased business activity in markets impacted by Marcellus and Utica shale gas drilling, additional lending personnel, focused marketing efforts, an expanded presence in our larger urban markets, and continued improvement in loan origination processes. Loan growth was funded primarily by growth in deposits and other short term liquidity sources. Deposits, excluding CDs, increased $321.4 million or 9.4% from September 30, 2013, with approximately $247 million of deposits for Marcellus and Utica shale gas payments made over the last twelve months significantly contributing to the increase. All deposit types increased except certificates of deposit, which decreased $280.1 million due to lower rate offerings for maturing CDs. Total assets at September 30, 2014 increased 2.2% compared to 2013 year-end, also due to loan growth.
WesBanco continues to maintain strong regulatory capital ratios. At September 30, 2014, tier I leverage was 9.70%, tier I risk-based capital was 13.56%, and total risk-based capital was 14.62%, which all improved from September 30, 2013. Both consolidated and bank-level regulatory capital ratios are well above the applicable “well-capitalized” standards promulgated by bank regulators, as well as the recently finalized fully-implemented BASEL III capital standards. Total tangible equity to tangible assets (non-GAAP measure) was 7.91% at September 30, 2014, up from 7.19% at September 30, 2013. Strong earnings and improved total capital have enabled WesBanco to increase the quarterly dividend rate, currently
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at $0.22 per share, seven times over the last four years, cumulatively representing a 57% increase. The most recent increase was $0.02 per share in the first quarter of 2014.
Credit Quality
Total non-performing loans, including TDRs, at September 30, 2014 were $49.0 million or 1.22% of total loans, which represents an 8.7% decrease from $53.6 million or 1.40% of total loans at September 30, 2013. Criticized and classified loans were $87.6 million, or 2.17% of total loans at September 30, 2014. This represents a decrease of 38.0% over the last twelve months from $141.3 million or 3.68% of total loans last year. The quarterly decrease is primarily the result of improvement in credit quality of loans that were criticized but not classified throughout the economic downturn.
Net charge-offs for the third quarter of 2014 were $2.2 million or 0.22% of average portfolio loans, compared to $5.8 million or 0.60% for the third quarter of 2013. Year-to-date, net charge-offs were $6.9 million or 0.24% of average portfolio loans compared to $11.3 million or 0.40% in the same period of 2013.
Lower charge-offs and continued improvement in delinquent, non-performing and classified and criticized loans resulted in the provision for credit losses decreasing to $1.5 million for the third quarter of 2014 compared to $2.8 million in the third quarter of 2013. For the nine months ended September 30, 2014 the provision was $4.5 million compared to $5.9 million in the same period of 2013. The allowance for loan losses represented 1.12% of total portfolio loans at September 30, 2014, compared to 1.23% at the end of the 2013 third quarter.
Net Interest Income
Net interest income increased $2.5 million or 5.4% in the third quarter of 2014 compared to the third quarter of 2013 due to a 3.6% increase in average earning assets, primarily through a 4.4% increase in average loan balances, and improvement in the net interest margin. Year-to-date net interest income increased $6.0 million or 4.3% from last year. The net interest margin improved by 6 basis points to 3.58% in the third quarter of 2014 compared to 3.52% in the same quarter of 2013, while for the first nine months the margin was 3.62% compared to 3.58% in 2013. Accretion of various purchase accounting adjustments from a 2012 acquisition benefited the net interest margin throughout 2013 and the first nine months of 2014, but at a decreasing rate. Excluding this benefit from both years, the net interest margin increased by 7 basis points from the third quarter of 2013, and 10 basis points from the first nine months of 2013. The improved net interest margin in the current low interest rate environment resulted partially from the aforementioned loan growth as the average rate on loans is higher than the average rate on securities. In addition, funding costs continued to decrease in the first nine months of 2014 as a result of a 28.4% reduction in higher-rate average other borrowings, primarily through maturities, and a 10.2% increase in lower-cost demand, money market and savings account deposits, while higher-cost CDs decreased by 11.0%. Overall average deposits increased by 3.3% year-to-date in 2014 compared to the same period in 2013.
Non-Interest Income and Non-Interest Expense
For the third quarter of 2014, non-interest income decreased $0.5 million or 2.7% compared to the third quarter of 2013. The third quarter of 2014 included a $1.4 million charge related to the prepayment of a higher rate $22.0 million repurchase agreement with another bank. Non-interest income, excluding this charge, increased $1.0 million or 5.6% Trust fees increased 5.0% in the third quarter as assets under management continued to increase from customer development initiatives and overall market improvements. Total trust assets were $3.8 billion at September 30, 2014, representing an increase of 8.1% from $3.5 billion at September 30, 2013. Net securities brokerage revenues increased $0.2 million or 12.9%, due to significant production increases from the addition of support and producing staff in several regions, as well as an increase in referrals and production from a licensed retail banker program. Net security gains increased by $0.6 million. Service charges on deposits decreased 10.3% compared to the third quarter of 2013 due to lower overdraft fees that are affected by consistent increases in deposit levels and higher average deposits per account. Mortgage loan sale gains decreased 26.2% as increasing interest rates reduced refinancings resulting in lower mortgage activity, which was also impacted by the recently-adopted Qualified Mortgage and Ability-to-Repay rules, which have somewhat limited the Bank’s product offerings. For the first nine months of 2014, non-interest income decreased 0.7% for similar reasons. However, excluding the $1.4 million charge relating to the prepayment, non-interest income increased by 2.0%.
Non-interest expense decreased $0.7 million or 1.9% for the third quarter compared to the third quarter of 2013. Salaries and wages increased 5.2%, due to routine annual adjustments to compensation, increased commissions on higher brokerage revenue and incentive and stock-related compensation granted in 2014. Employee benefits expense decreased
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5.1%, primarily from decreased pension and other benefits expense, partially offset by higher health insurance cost. Marketing expense decreased 19.5% primarily due to differences year-to-year in the timing of campaigns. Other expense decreased 9.6% primarily due to reduced communications and other real estate owned expense. For the year-to-date period of 2014, non-interest expense decreased $0.6 million or 0.5% compared to the same period in 2013. Excluding 2013 merger-related expenses of $1.3 million incurred primarily in the first quarter of 2013, total non-interest expense would have increased $0.7 million or 0.6% for the first nine months. Salaries and wages increased 5.5% and employee benefits decreased 6.8% in the year-to-date period. In addition, net occupancy and equipment expense increased due to higher weather-related expenses, the opening of two branches near the end of 2013, and investment in internal infrastructure in the second half of last year. Other expense decreased 4.1%, also primarily due to lower communication and other real estate owned expenses. However, despite the overall increase in year-to-date non-interest expense, the efficiency ratio improved to 59.3% for the year-to-date period from 60.8% in 2013. The third quarter 2014 ratio dropped to 58.5% compared to 61.5% in the third quarter of last year.
Financial Results Conference Call
WesBanco, Inc. will host a conference call to discuss the Company's financial results for the third quarter of 2014 on Wednesday, October 22, 2014 at 10:00 a.m. E.D.T. Callers wishing to participate should access the call by dialing 1-888-347-6607 or 1-412-902-4290 for international callers. The call may also be listened to live via Webcast through the "Investor Relations" section of the Company's Web site or by registering at http://www.videonewswire.com/event.asp?id=100643. Access to the Webcast will begin approximately 15 minutes prior to the start of the call.
WesBanco is a multi-state bank holding company with total assets of approximately $6.3 billion, operating through 119 branch locations and 105 ATMs in West Virginia, Ohio, and Pennsylvania. WesBanco’s banking subsidiary is WesBanco Bank, Inc., headquartered in Wheeling, West Virginia. WesBanco also operates an insurance brokerage company, WesBanco Insurance Services, Inc., and a full service broker/dealer, WesBanco Securities, Inc.
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 contained in this report should be read in conjunction with WesBanco’s Form 10-K for the year ended December 31, 2013 and documents subsequently filed by WesBanco with the Securities and Exchange Commission (“SEC”), including WesBanco’s Form 10-Q for the quarters ended March 31, 2014 and June 30, 2014, which are available at the SEC’s website, www.sec.gov or at WesBanco’s website, www.wesbanco.com. Investors are cautioned that forward-looking statements, which are not historical fact, involve risks and uncertainties, including those detailed in WesBanco’s most recent Annual Report on Form 10-K filed with the SEC under “Risk Factors” in Part I, Item 1A. Such statements are subject to important factors that could cause actual results to differ materially from those contemplated by such statements, including, without limitation, the effects of changing regional and national economic conditions; changes in interest rates, spreads on earning assets and interest-bearing liabilities, and associated interest rate sensitivity; sources of liquidity available to WesBanco and its related subsidiary operations; potential future credit losses and the credit risk of commercial, real estate, and consumer loan customers and their borrowing activities; actions of the Federal Reserve Board, the Federal Deposit Insurance Corporation, the SEC, the Financial Institution Regulatory Authority, the Municipal Securities Rulemaking Board, the Securities Investors Protection Corporation, and other regulatory bodies; potential legislative and federal and state regulatory actions and reform, including, without limitation, the impact of the implementation of the Dodd-Frank Act; adverse decisions of federal and state courts; fraud, scams and schemes of third parties; internet hacking; competitive conditions in the financial services industry; rapidly changing technology affecting financial services; marketability of debt instruments and corresponding impact on fair value adjustments; and/or other external developments materially impacting WesBanco’s operational and financial performance. WesBanco does not assume any duty to update forward-looking statements.
| WESBANCO, INC. | | | | | | | | | | | |
| Consolidated Selected Financial Highlights | | | | | | | | | | | Page 4 |
| (unaudited, dollars in thousands, except shares and per share amounts) | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | For the Three Months Ended | | For the Nine Months Ended |
| STATEMENT OF INCOME | September 30, | | September 30, |
| Interest and dividend income | 2014 | | 2013 | | % Change | | 2014 | | 2013 | | % Change |
| | Loans, including fees | $ 43,399 | | $ 43,678 | | (0.6) | | $ 128,691 | | $ 131,706 | | (2.3) |
| | Interest and dividends on securities: | | | | | | | | | | | |
| | | Taxable | 7,375 | | 7,226 | | 2.1 | | 22,051 | | 22,015 | | 0.2 |
| | | Tax-exempt | 3,413 | | 3,355 | | 1.7 | | 10,234 | | 9,748 | | 5.0 |
| | | | Total interest and dividends on securities | 10,788 | | 10,581 | | 2.0 | | 32,285 | | 31,763 | | 1.6 |
| | Other interest income | 116 | | 58 | | 100.0 | | 829 | | 165 | | 402.4 |
| Total interest and dividend income | 54,303 | | 54,317 | | (0.0) | | 161,805 | | 163,634 | | (1.1) |
| Interest expense | | | | | | | | | | | |
| | Interest bearing demand deposits | 399 | | 369 | | 8.1 | | 1,168 | | 1,035 | | 12.9 |
| | Money market deposits | 487 | | 345 | | 41.2 | | 1,394 | | 1,023 | | 36.3 |
| | Savings deposits | 135 | | 128 | | 5.5 | | 398 | | 395 | | 0.8 |
| | Certificates of deposit | 3,254 | | 5,597 | | (41.9) | | 10,305 | | 17,626 | | (41.5) |
| | | | Total interest expense on deposits | 4,275 | | 6,439 | | (33.6) | | 13,265 | | 20,079 | | (33.9) |
| | Federal Home Loan Bank borrowings | 264 | | 291 | | (9.3) | | 650 | | 900 | | (27.8) |
| | Other short-term borrowings | 348 | | 651 | | (46.5) | | 1,255 | | 1,900 | | (33.9) |
| | Junior subordinated debt owed to unconsolidated subsidiary trusts | 805 | | 805 | | - | | 2,392 | | 2,506 | | (4.5) |
| | | | Total interest expense | 5,692 | | 8,186 | | (30.5) | | 17,562 | | 25,385 | | (30.8) |
| Net interest income | 48,611 | | 46,131 | | 5.4 | | 144,243 | | 138,249 | | 4.3 |
| | Provision for credit losses | 1,478 | | 2,819 | | (47.6) | | 4,526 | | 5,942 | | (23.8) |
| Net interest income after provision for credit losses | 47,133 | | 43,312 | | 8.8 | | 139,717 | | 132,307 | | 5.6 |
| Non-interest income | | | | | | | | | | | |
| | Trust fees | 5,096 | | 4,854 | | 5.0 | | 15,954 | | 14,694 | | 8.6 |
| | Service charges on deposits | 4,170 | | 4,650 | | (10.3) | | 12,107 | | 13,309 | | (9.0) |
| | Electronic banking fees | 3,268 | | 3,124 | | 4.6 | | 9,549 | | 9,186 | | 4.0 |
| | Net securities brokerage revenue | 1,701 | | 1,506 | | 12.9 | | 5,533 | | 4,644 | | 19.1 |
| | Bank-owned life insurance | 882 | | 911 | | (3.2) | | 3,577 | | 3,739 | | (4.3) |
| | Net gains on sales of mortgage loans | 550 | | 745 | | (26.2) | | 1,178 | | 2,157 | | (45.4) |
| | Net securities gains | 581 | | (15) | | 3,973.3 | | 756 | | 687 | | 10.0 |
| | Net (loss) / gain on other real estate owned and other assets/liabilities | (1,167) | | 8 | | (14,687.5) | | (1,218) | | 63 | | (2,033.3) |
| | Other income | 1,573 | | 1,333 | | 18.0 | | 4,508 | | 3,857 | | 16.9 |
| | | | Total non-interest income | 16,654 | | 17,116 | | (2.7) | | 51,944 | | 52,336 | | (0.7) |
| Non-interest expense | | | | | | | | | | | |
| | Salaries and wages | 17,331 | | 16,480 | | 5.2 | | 50,700 | | 48,079 | | 5.5 |
| | Employee benefits | 5,051 | | 5,323 | | (5.1) | | 16,289 | | 17,481 | | (6.8) |
| | Net occupancy | 2,916 | | 2,921 | | (0.2) | | 9,265 | | 8,943 | | 3.6 |
| | Equipment | 2,837 | | 2,692 | | 5.4 | | 8,534 | | 7,901 | | 8.0 |
| | Marketing | 1,276 | | 1,585 | | (19.5) | | 3,992 | | 4,015 | | (0.6) |
| | FDIC insurance | 786 | | 916 | | (14.2) | | 2,543 | | 2,806 | | (9.4) |
| | Amortization of intangible assets | 477 | | 556 | | (14.2) | | 1,454 | | 1,742 | | (16.5) |
| | Restructuring and merger-related expense | - | | 36 | | (100.0) | | - | | 1,265 | | (100.0) |
| | Other operating expenses | 8,589 | | 9,500 | | (9.6) | | 26,884 | | 28,024 | | (4.1) |
| | | | Total non-interest expense | 39,263 | | 40,009 | | (1.9) | | 119,661 | | 120,256 | | (0.5) |
| Income before provision for income taxes | 24,524 | | 20,419 | | 20.1 | | 72,000 | | 64,387 | | 11.8 |
| | Provision for income taxes | 6,358 | | 4,884 | | 30.2 | | 18,538 | | 15,815 | | 17.2 |
| Net Income | $ 18,166 | | $ 15,535 | | 16.9 | | $ 53,462 | | $ 48,572 | | 10.1 |
| | | | | | | | | | | | | | | |
| Taxable equivalent net interest income | $ 50,449 | | $ 47,938 | | 5.2 | | $ 149,754 | | $ 143,498 | | 4.4 |
| | | | | | | | | | | | | | | |
| Per common share data | | | | | | | | | | | |
| Net income per common share - basic | $ 0.62 | | $ 0.53 | | 17.0 | | $ 1.83 | | $ 1.66 | | 10.2 |
| Net income per common share - diluted | $ 0.62 | | $ 0.53 | | 17.0 | | $ 1.82 | | $ 1.66 | | 9.6 |
| Dividends declared | $ 0.22 | | $ 0.20 | | 10.0 | | $ 0.66 | | $ 0.58 | | 13.8 |
| Book value (period end) | | | | | | | $ 26.94 | | $ 25.10 | | 7.3 |
| Tangible book value (period end) (1) | | | | | | | $ 16.10 | | $ 14.25 | | 13.0 |
| Average common shares outstanding - basic | 29,280,648 | | 29,325,128 | | (0.2) | | 29,235,364 | | 29,260,967 | | (0.1) |
| Average common shares outstanding - diluted | 29,360,880 | | 29,412,458 | | (0.2) | | 29,316,914 | | 29,328,305 | | (0.0) |
| Period end common shares outstanding | 29,283,675 | | 29,350,061 | | (0.2) | | 29,283,675 | | 29,350,061 | | (0.2) |
| | | | | | | | | | | | | | | |
| (1) See non-GAAP financial measures for additional information relating to the calculation of this item. | | | | | |
| WESBANCO, INC. | | | | | | | | | | | | |
| Consolidated Selected Financial Highlights | | | | | | | | | | | Page 5 |
| (unaudited, dollars in thousands) | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| Selected ratios | | | | | | | | | | | | | |
| | | | For the Nine Months Ended | | | | | | |
| | | | September 30, | | | | | | |
| | | | 2014 | | 2013 | | % Change | | | | | | |
| | | | | | | | | | | | | | |
| Return on average assets | | 1.15 | % | 1.07 | % | 7.48 | % | | | | | |
| Return on average equity | | 9.24 | | 8.91 | | 3.70 | | | | | | |
| Return on average tangible equity (1) | 15.97 | | 16.20 | | (1.42) | | | | | | |
| Yield on earning assets (2) | | 4.04 | | 4.21 | | (4.04) | | | | | | |
| Cost of interest bearing liabilities | 0.53 | | 0.77 | | (31.17) | | | | | | |
| Net interest spread (2) | | 3.51 | | 3.44 | | 2.03 | | | | | | |
| Net interest margin (2) | | 3.62 | | 3.58 | | 1.12 | | | | | | |
| Efficiency (1) (2) | | | 59.33 | | 60.76 | | (2.35) | | | | | | |
| Average loans to average deposits | 76.15 | | 75.11 | | 1.38 | | | | | | |
| Annualized net loan charge-offs/average loans | 0.24 | | 0.40 | | (40.00) | | | | | | |
| Effective income tax rate | | 25.75 | | 24.56 | | 4.85 | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | For the Quarter Ended | | |
| | | | Sept. 30, | | June 30, | | Mar. 31, | | Dec. 31, | | Sept. 30, | | |
| | | | 2014 | | 2014 | | 2014 | | 2013 | | 2013 | | |
| | | | | | | | | | | | | | |
| Return on average assets | | 1.14 | % | 1.22 | % | 1.08 | % | 0.99 | % | 1.01 | % | |
| Return on average equity | | 9.15 | | 9.79 | | 8.78 | | 8.17 | | 8.40 | | |
| Return on average tangible equity (1) | 15.59 | | 16.90 | | 15.40 | | 14.60 | | 15.20 | | |
| Yield on earning assets (2) | | 3.98 | | 4.06 | | 4.08 | | 4.09 | | 4.13 | | |
| Cost of interest bearing liabilities | 0.51 | | 0.52 | | 0.56 | | 0.63 | | 0.73 | | |
| Net interest spread (2) | | 3.47 | | 3.54 | | 3.52 | | 3.46 | | 3.40 | | |
| Net interest margin (2) | | 3.58 | | 3.64 | | 3.63 | | 3.58 | | 3.52 | | |
| Efficiency (1) (2) | | | 58.51 | | 58.93 | | 60.57 | | 61.66 | | 61.45 | | |
| Average loans to average deposits | 77.52 | | 75.40 | | 75.52 | | 75.79 | | 76.16 | | |
| Annualized net loan charge-offs/average loans | 0.22 | | 0.06 | | 0.43 | | 0.30 | | 0.60 | | |
| Effective income tax rate | | 25.93 | | 25.67 | | 25.63 | | 24.37 | | 23.92 | | |
| Trust assets, market value at period end | $ 3,783,774 | | $ 3,844,116 | | $ 3,752,142 | | $ 3,688,734 | | $ 3,501,873 | | |
| | | | | | | | | | | | | | |
| (1) See non-GAAP financial measures for additional information relating to the calculation of this item. | | | | | | |
| (2) The yield on earning assets, net interest margin, net interest spread and efficiency ratios are presented on a fully |
| taxable-equivalent (FTE) and annualized basis. The FTE basis adjusts for the tax benefit of income on certain tax-exempt |
| loans and investments. WesBanco believes this measure to be the preferred industry measurement of net interest income and |
| provides a relevant comparison between taxable and non-taxable amounts. |
| WESBANCO, INC. | | | | | | | |
| Consolidated Selected Financial Highlights | | | | | | | Page 6 |
| (unaudited, dollars in thousands, except shares) | | | | | | | % Change |
| Balance sheets | September 30, | | | December 31, | December 31, 2013 |
| Assets | | 2014 | | 2013 | | % Change | 2013 | to September 30, 2014 |
| Cash and due from banks | $ 73,715 | | $ 140,234 | | (47.4) | $ 80,001 | (7.9) |
| Due from banks - interest bearing | 2,704 | | 5,405 | | (50.0) | 15,550 | (82.6) |
| Securities: | | | | | | | |
| | Available-for-sale, at fair value | 959,553 | | 933,455 | | 2.8 | 934,386 | 2.7 |
| | Held-to-maturity (fair values of $617,332; $607,215 and $596,308, respectively) | 594,860 | | 602,588 | | (1.3) | 598,520 | (0.6) |
| | | Total securities | 1,554,413 | | 1,536,043 | | 1.2 | 1,532,906 | 1.4 |
| Loans held for sale | 6,260 | | 6,601 | | (5.2) | 5,855 | 6.9 |
| Portfolio loans: | | | | | | | |
| | Commercial real estate | 1,973,336 | | 1,867,782 | | 5.7 | 1,912,919 | 3.2 |
| | Commercial and industrial | 603,245 | | 544,202 | | 10.8 | 556,249 | 8.4 |
| | Residential real estate | 909,531 | | 879,703 | | 3.4 | 890,804 | 2.1 |
| | Home equity | 313,711 | | 283,488 | | 10.7 | 284,687 | 10.2 |
| | Consumer | 231,881 | | 261,363 | | (11.3) | 250,258 | (7.3) |
| Total portfolio loans, net of unearned income | 4,031,704 | | 3,836,538 | | 5.1 | 3,894,917 | 3.5 |
| Allowance for loan losses | (45,029) | | (47,342) | | 4.9 | (47,368) | 4.9 |
| | | Net portfolio loans | 3,986,675 | | 3,789,196 | | 5.2 | 3,847,549 | 3.6 |
| Premises and equipment, net | 92,090 | | 92,696 | | (0.7) | 93,157 | (1.1) |
| Accrued interest receivable | 20,032 | | 19,903 | | 0.6 | 18,960 | 5.7 |
| Goodwill and other intangible assets, net | 319,973 | | 321,972 | | (0.6) | 321,426 | (0.5) |
| Bank-owned life insurance | 122,678 | | 120,457 | | 1.8 | 121,390 | 1.1 |
| Other assets | 99,954 | | 105,853 | | (5.6) | 107,979 | (7.4) |
| Total Assets | $ 6,278,494 | | $ 6,138,360 | | 2.3 | $ 6,144,773 | 2.2 |
| | | | | | | | | | | |
| Liabilities | | | | | | | |
| Deposits: | | | | | | | |
| | Non-interest bearing demand | $ 1,027,636 | | $ 917,478 | | 12.0 | $ 960,814 | 7.0 |
| | Interest bearing demand | 897,827 | | 870,319 | | 3.2 | 857,761 | 4.7 |
| | Money market | 993,211 | | 858,422 | | 15.7 | 942,768 | 5.4 |
| | Savings deposits | 824,703 | | 775,776 | | 6.3 | 789,709 | 4.4 |
| | Certificates of deposit | 1,358,308 | | 1,638,447 | | (17.1) | 1,511,478 | (10.1) |
| | | Total deposits | 5,101,685 | | 5,060,442 | | 0.8 | 5,062,530 | 0.8 |
| Federal Home Loan Bank borrowings | 123,374 | | 59,918 | | 105.9 | 39,508 | 212.3 |
| Other short-term borrowings | 117,637 | | 124,179 | | (5.3) | 150,536 | (21.9) |
| Junior subordinated debt owed to unconsolidated subsidiary trusts | 106,166 | | 106,127 | | 0.0 | 106,137 | 0.0 |
| | | Total borrowings | 347,177 | | 290,224 | | 19.6 | 296,181 | 17.2 |
| Accrued interest payable | 2,103 | | 3,535 | | (40.5) | 2,354 | (10.7) |
| Other liabilities | 38,745 | | 47,471 | | (18.4) | 37,113 | 4.4 |
| Total Liabilities | 5,489,710 | | 5,401,672 | | 1.6 | 5,398,178 | 1.7 |
| | | | | | | | | | | |
| Shareholders' Equity | | | | | | | |
| Preferred stock, no par value; 1,000,000 shares authorized; | | | | | | | |
| | none outstanding | - | | - | | - | - | - |
| Common stock, $2.0833 par value; 50,000,000 shares authorized; | | | | | | | |
| | 29,367,511 shares; 29,350,061 shares and 29,367,511 shares issued, respectively; | | | | | | |
| | 29,283,675 shares; 29,350,061 shares and 29,175,236 shares outstanding, respectively | 61,182 | | 61,144 | | 0.1 | 61,182 | - |
| Capital surplus | 244,358 | | 244,352 | | 0.0 | 244,974 | (0.3) |
| Retained earnings | 494,511 | | 450,833 | | 9.7 | 460,351 | 7.4 |
| Treasury stock (83,836; 0 and 192,275 shares - at cost, | | | | | | | |
| | respectively) | (2,601) | | - | | (100.0) | (5,969) | 56.4 |
| Accumulated other comprehensive loss | (7,423) | | (18,442) | | 59.7 | (12,734) | 41.7 |
| Deferred benefits for directors | (1,243) | | (1,199) | | (3.7) | (1,209) | (2.8) |
| Total Shareholders' Equity | 788,784 | | 736,688 | | 7.1 | 746,595 | 5.7 |
| Total Liabilities and Shareholders' Equity | $ 6,278,494 | | $ 6,138,360 | | 2.3 | $ 6,144,773 | 2.2 |
| WESBANCO, INC. | | | | |
| Consolidated Selected Financial Highlights | | | | Page 7 |
| (unaudited, dollars in thousands, except shares) | | | | |
| Balance sheets | Sept. 30, | | June 30, | |
| Assets | | | 2014 | | 2014 | % Change |
| Cash and due from banks | $ 73,715 | | $ 81,790 | (9.9) |
| Due from banks - interest bearing | 2,704 | | 12,698 | (78.7) |
| Securities: | | | | |
| | Available-for-sale, at fair value | 959,553 | | 1,006,079 | (4.6) |
| | Held-to-maturity (fair values of $617,332 and 628,540, respectively) | 594,860 | | 607,695 | (2.1) |
| | | Total securities | 1,554,413 | | 1,613,774 | (3.7) |
| Loans held for sale | 6,260 | | 10,641 | (41.2) |
| Portfolio Loans: | | | | |
| | Commercial real estate | 1,973,336 | | 1,940,872 | 1.7 |
| | Commercial and industrial | 603,245 | | 578,665 | 4.2 |
| | Residential real estate | 909,531 | | 898,357 | 1.2 |
| | Home equity | 313,711 | | 295,127 | 6.3 |
| | Consumer | 231,881 | | 233,097 | (0.5) |
| Total portfolio loans, net of unearned income | 4,031,704 | | 3,946,118 | 2.2 |
| Allowance for loan losses | (45,029) | | (45,741) | (1.6) |
| | | Net portfolio loans | 3,986,675 | | 3,900,377 | 2.2 |
| Premises and equipment, net | 92,090 | | 92,106 | (0.0) |
| Accrued interest receivable | 20,032 | | 19,087 | 5.0 |
| Goodwill and other intangible assets, net | 319,973 | | 320,449 | (0.1) |
| Bank-owned life insurance | 122,678 | | 121,878 | 0.7 |
| Other assets | 99,954 | | 104,220 | (4.1) |
| Total Assets | $ 6,278,494 | | $ 6,277,020 | 0.0 |
| | | | | | | | |
| Liabilities | | | | |
| Deposits: | | | | |
| | Non-interest bearing demand | $ 1,027,636 | | $ 1,021,414 | 0.6 |
| | Interest bearing demand | 897,827 | | 871,487 | 3.0 |
| | Money market | 993,211 | | 969,518 | 2.4 |
| | Savings deposits | 824,703 | | 829,155 | (0.5) |
| | Certificates of deposit | 1,358,308 | | 1,425,829 | (4.7) |
| | | Total deposits | 5,101,685 | | 5,117,403 | (0.3) |
| Federal Home Loan Bank borrowings | 123,374 | | 138,596 | (11.0) |
| Other short-term borrowings | 117,637 | | 94,745 | 24.2 |
| Junior subordinated debt owed to unconsolidated subsidiary trusts | 106,166 | | 106,156 | 0.0 |
| | | Total borrowings | 347,177 | | 339,497 | 2.3 |
| Accrued interest payable | 2,103 | | 2,306 | (8.8) |
| Other liabilities | 38,745 | | 39,189 | (1.1) |
| Total liabilities | 5,489,710 | | 5,498,395 | (0.2) |
| | | | | | | | |
| Shareholders' Equity | | | | |
| Preferred stock, no par value; 1,000,000 shares authorized; | | | |
| | none outstanding | - | | - | - |
| Common stock, $2.0833 par value; 50,000,000 shares authorized; | | | |
| | 29,367,511 shares and 29,367,511 shares issued, respectively; | | | |
| | 29,283,675 and 29,278,925 shares outstanding, respectively | 61,182 | | 61,182 | 0.0 |
| Capital surplus | 244,358 | | 244,029 | 0.1 |
| Retained earnings | 494,511 | | 482,786 | 2.4 |
| Treasury stock ( 83,836 and 88,586 shares - at cost) | (2,601) | | (2,748) | 5.3 |
| Accumulated other comprehensive income (loss) | (7,423) | | (5,393) | (37.6) |
| Deferred benefits for directors | (1,243) | | (1,231) | (1.0) |
| Total Shareholders' Equity | 788,784 | | 778,625 | 1.3 |
| Total Liabilities and Shareholders' Equity | $ 6,278,494 | | $ 6,277,020 | 0.0 |
| WESBANCO, INC. | | | | | | | | | | | | |
| Consolidated Selected Financial Highlights | | | | | | | | | | Page 8 | |
| (unaudited, dollars in thousands) | | | | | | | | | | | | |
| Average balance sheet and | | | | | | | | | | | | |
| net interest margin analysis | Three Months Ended September 30, | | For the Nine Months Ended September 30, |
| | | 2014 | | 2013 | | 2014 | | 2013 | |
| | | Average | Average | | Average | Average | | Average | Average | | Average | Average | |
| Assets | | Balance | Rate | | Balance | Rate | | Balance | Rate | | Balance | Rate | |
| Due from banks - interest bearing | $ 20,064 | 0.24 | % | $ 19,132 | 0.21 | % | $ 31,668 | 0.23 | % | $ 35,918 | 0.22 | % |
| Loans, net of unearned income (1) | 3,983,285 | 4.32 | | 3,814,710 | 4.54 | | 3,919,006 | 4.39 | | 3,742,840 | 4.70 | |
| Securities: (2) | | | | | | | | | | | | | |
| Taxable | | 1,175,750 | 2.51 | | 1,165,023 | 2.48 | | 1,164,693 | 2.52 | | 1,188,633 | 2.47 | |
| Tax-exempt (3) | 405,338 | 5.18 | | 395,705 | 5.22 | | 403,970 | 5.20 | | 378,684 | 5.28 | |
| Total securities | 1,581,088 | 3.19 | | 1,560,728 | 3.18 | | 1,568,663 | 3.21 | | 1,567,317 | 3.15 | |
| Other earning assets (4) | 15,337 | 2.73 | | 12,838 | 1.50 | | 12,600 | 8.20 | | 16,164 | 0.88 | |
| Total earning assets (3) | 5,599,774 | 3.98 | % | 5,407,408 | 4.13 | % | 5,531,937 | 4.04 | % | 5,362,239 | 4.21 | % |
| Other assets | | 709,003 | | | 710,760 | | | 706,815 | | | 723,014 | | |
| Total Assets | | $ 6,308,777 | | | $ 6,118,168 | | | $ 6,238,752 | | | $ 6,085,253 | | |
| | | | | | | | | | | | | | |
| Liabilities and Shareholders' Equity | | | | | | | | | | | | |
| Interest bearing demand deposits | $ 894,386 | 0.18 | % | $ 856,745 | 0.17 | % | $ 895,687 | 0.17 | % | $ 855,009 | 0.16 | % |
| Money market accounts | 989,935 | 0.20 | | 843,520 | 0.16 | | 970,189 | 0.19 | | 845,960 | 0.16 | |
| Savings deposits | 826,048 | 0.06 | | 773,432 | 0.07 | | 819,863 | 0.06 | | 766,574 | 0.07 | |
| Certificates of deposit | 1,391,740 | 0.93 | | 1,628,335 | 1.36 | | 1,446,443 | 0.95 | | 1,625,312 | 1.45 | |
| Total interest bearing deposits | 4,102,109 | 0.41 | | 4,102,032 | 0.62 | | 4,132,182 | 0.43 | | 4,092,855 | 0.66 | |
| Federal Home Loan Bank borrowings | 138,175 | 0.76 | | 60,135 | 1.92 | | 66,421 | 1.31 | | 65,321 | 1.84 | |
| Other borrowings | 95,915 | 1.44 | | 157,328 | 1.64 | | 105,046 | 1.60 | | 146,632 | 1.73 | |
| Junior subordinated debt | 106,161 | 3.01 | | 106,123 | 3.01 | | 106,151 | 3.01 | | 108,181 | 3.10 | |
| Total interest bearing liabilities | 4,442,360 | 0.51 | % | 4,425,618 | 0.73 | % | 4,409,800 | 0.53 | % | 4,412,989 | 0.77 | % |
| Non-interest bearing demand deposits | 1,036,173 | | | 906,638 | | | 1,014,061 | | | 890,456 | | |
| Other liabilities | 42,572 | | | 52,450 | | | 41,597 | | | 52,564 | | |
| Shareholders' equity | 787,672 | | | 733,462 | | | 773,294 | | | 729,244 | | |
| Total Liabilities and Shareholders' Equity | $ 6,308,777 | | | $ 6,118,168 | | | $ 6,238,752 | | | $ 6,085,253 | | |
| Taxable equivalent net interest spread | | 3.47 | % | | 3.40 | % | | 3.51 | % | | 3.44 | % |
| Taxable equivalent net interest margin | | 3.58 | % | | 3.52 | % | | 3.62 | % | | 3.58 | % |
| | | | | | | | | | | | | | |
| (1) Gross of allowance for loan losses and net of unearned income. Includes non-accrual and loans held for sale. | | | | | |
| Loan fees included in interest income on loans are $0.8 million and $1.0 million for the three months ended September 30, 2014 and 2013, respectively, and | |
| $2.5 million and $3.0 million for the nine months ended September 30, 2014 and 2013, respectively. | | | | | | |
| Additionally, accretion on earning assets included in interest income from a 2012 acquisition was $0.4 and $0.4 million for the three months | | |
| ended September 30, 2014 and 2013, respectively, and $1.1 million and $2.3 million for the nine months ended September 30, 2014 and 2013, respectively, while |
| accretion on interest bearing liabilities acquired from the 2012 acquisition was $0.2 and $0.4 million for the three months ended September 30, 2014 and 2013, |
| respectively, and $0.6 million and $1.4 million for the nine months ended September 30, 2014 and 2013, respectively. | |
| (2) Average yields on available-for sale securities are calculated based on amortized cost. | | | | | | | |
| (3) Taxable equivalent basis is calculated on tax-exempt securities using a rate of 35% for each period presented. | | | | | |
| (4) Interest income on other earning assets includes $0.5 million of interest on a federal income tax refund for the nine months ended September 30, 2014. | |
| WESBANCO, INC. | | | | | | | | | |
| Consolidated Selected Financial Highlights | | | | | | | | | Page 9 |
| (unaudited, dollars in thousands, except shares and per share amounts) | | | | | | | | |
| | | | | Quarter Ended |
| Statement of Income | Sept. 30, | | June 30, | | Mar. 31, | | Dec. 31, | | Sept. 30, |
| Interest income | 2014 | | 2014 | | 2014 | | 2013 | | 2013 |
| | Loans, including fees | $ 43,399 | | $ 42,546 | | $ 42,746 | | $ 43,617 | | $ 43,678 |
| | Interest and dividends on securities: | | | | | | | | | |
| | | Taxable | 7,375 | | 7,452 | | 7,225 | | 7,178 | | 7,226 |
| | | Tax-exempt | 3,413 | | 3,435 | | 3,385 | | 3,380 | | 3,355 |
| | | | Total interest and dividends on securities | 10,788 | | 10,887 | | 10,610 | | 10,558 | | 10,581 |
| | Other interest income | 116 | | 611 | | 101 | | 82 | | 58 |
| Total interest and dividend income | 54,303 | | 54,044 | | 53,457 | | 54,257 | | 54,317 |
| Interest expense | | | | | | | | | |
| | Interest bearing demand deposits | 399 | | 395 | | 374 | | 380 | | 369 |
| | Money market deposits | 487 | | 466 | | 440 | | 440 | | 345 |
| | Savings deposits | 135 | | 133 | | 130 | | 130 | | 128 |
| | Certificates of deposit | 3,254 | | 3,422 | | 3,630 | | 4,383 | | 5,597 |
| | | | Total interest expense on deposits | 4,275 | | 4,416 | | 4,574 | | 5,333 | | 6,439 |
| | Federal Home Loan Bank borrowings | �� 264 | | 175 | | 211 | | 251 | | 291 |
| | Other short-term borrowings | 348 | | 350 | | 557 | | 625 | | 651 |
| | Junior subordinated debt owed to unconsolidated subsidiary trusts | 805 | | 796 | | 790 | | 810 | | 805 |
| | | | Total interest expense | 5,692 | | 5,737 | | 6,132 | | 7,019 | | 8,186 |
| Net interest income | 48,611 | | 48,307 | | 47,325 | | 47,238 | | 46,131 |
| | Provision for credit losses | 1,478 | | 849 | | 2,199 | | 3,144 | | 2,819 |
| Net interest income after provision for credit losses | 47,133 | | 47,458 | | 45,126 | | 44,094 | | 43,312 |
| Non-interest income | | | | | | | | | |
| | Trust fees | 5,096 | | 5,210 | | 5,648 | | 4,883 | | 4,854 |
| | Service charges on deposits | 4,170 | | 4,078 | | 3,860 | | 4,616 | | 4,650 |
| | Electronic banking fees | 3,268 | | 3,267 | | 3,013 | | 3,012 | | 3,124 |
| | Net securities brokerage revenue | 1,701 | | 2,003 | | 1,829 | | 1,604 | | 1,506 |
| | Bank-owned life insurance | 882 | | 1,821 | | 875 | | 925 | | 911 |
| | Net gains on sales of mortgage loans | 550 | | 475 | | 154 | | 456 | | 745 |
| | Net securities gains / (losses) | 581 | | 165 | | 10 | | (3) | | (15) |
| | Net (loss) / gain on other real estate owned and other assets/liabilities | (1,167) | | (165) | | 113 | | (144) | | 8 |
| | Other income | 1,573 | | 1,387 | | 1,547 | | 1,601 | | 1,333 |
| | | | Total non-interest income | 16,654 | | 18,241 | | 17,049 | | 16,950 | | 17,116 |
| Non-interest expense | | | | | | | | | |
| | Salaries and wages | 17,331 | | 16,904 | | 16,467 | | 17,352 | | 16,480 |
| | Employee benefits | 5,051 | | 5,529 | | 5,708 | | 5,774 | | 5,323 |
| | Net occupancy | 2,916 | | 2,857 | | 3,491 | | 2,866 | | 2,921 |
| | Equipment | 2,837 | | 2,914 | | 2,783 | | 2,768 | | 2,692 |
| | Marketing | 1,276 | | 1,713 | | 1,003 | | 1,159 | | 1,585 |
| | FDIC insurance | 786 | | 880 | | 877 | | 919 | | 916 |
| | Amortization of intangible assets | 477 | | 482 | | 495 | | 546 | | 556 |
| | Restructuring and merger-related expense | - | | - | | - | | 45 | | 36 |
| | Other operating expenses | 8,589 | | 9,025 | | 9,271 | | 9,314 | | 9,500 |
| | | | Total non-interest expense | 39,263 | | 40,304 | | 40,095 | | 40,743 | | 40,009 |
| Income before provision for income taxes | 24,524 | | 25,395 | | 22,080 | | 20,301 | | 20,419 |
| | Provision for income taxes | 6,358 | | 6,520 | | 5,659 | | 4,948 | | 4,884 |
| Net Income | $ 18,166 | | $ 18,875 | | $ 16,421 | | $ 15,353 | | $ 15,535 |
| | | | | | | | | | | | | |
| Taxable equivalent net interest income | $ 50,449 | | $ 50,157 | | $ 49,148 | | $ 49,058 | | $ 47,938 |
| | | | | | | | | | | | | |
| Per common share data | | | | | | | | | |
| Net income per common share - basic | $ 0.62 | | $ 0.65 | | $ 0.56 | | $ 0.52 | | $ 0.53 |
| Net income per common share - diluted | $ 0.62 | | $ 0.64 | | $ 0.56 | | $ 0.52 | | $ 0.53 |
| Dividends declared | $ 0.22 | | $ 0.22 | | $ 0.22 | | $ 0.20 | | $ 0.20 |
| Book value (period end) | $ 26.94 | | $ 26.59 | | $ 26.05 | | $ 25.59 | | $ 25.10 |
| Tangible book value (period end) (1) | $ 16.10 | | $ 15.75 | | $ 15.17 | | $ 14.68 | | $ 14.25 |
| Average common shares outstanding - basic | 29,280,648 | | 29,242,180 | | 29,182,183 | | 29,300,463 | | 29,325,128 |
| Average common shares outstanding - diluted | 29,360,880 | | 29,321,927 | | 29,262,680 | | 29,387,485 | | 29,412,458 |
| Period end common shares outstanding | 29,283,675 | | 29,278,925 | | 29,212,110 | | 29,175,236 | | 29,350,061 |
| Full time equivalent employees | 1,435 | | 1,456 | | 1,442 | | 1,469 | | 1,462 |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| (1) See non-GAAP financial measures for additional information relating to the calculation of this item. |
| WESBANCO, INC. | | | | | | | | | | | |
| Consolidated Selected Financial Highlights | | | | | | | | | Page 10 | |
| (unaudited, dollars in thousands) | | | | | | | | | | | |
| | | | | Quarter Ended | |
| | | | | Sept. 30, | | June 30, | | Mar. 31, | | Dec. 31, | | Sept. 30, | |
| Asset quality data | | 2014 | | 2014 | | 2014 | | 2013 | | 2013 | |
| Non-performing assets: | | | | | | | | | | | |
| | Troubled debt restructurings - accruing | | $ 12,222 | | $ 13,513 | | $ 14,535 | | $ 14,861 | | $ 15,480 | |
| | Non-accrual loans: | | | | | | | | | | | |
| | | Troubled debt restructurings | | 5,496 | | 6,281 | | 7,406 | | 9,324 | | 12,920 | |
| | | Other non-accrual loans | | 31,275 | | 29,837 | | 28,967 | | 27,309 | | 25,240 | |
| | | Total non-accrual loans | | 36,771 | | 36,118 | | 36,373 | | 36,633 | | 38,160 | |
| | | Total non-performing loans | | 48,993 | | 49,631 | | 50,908 | | 51,494 | | 53,640 | |
| | Other real estate and repossessed assets | 4,695 | | 5,106 | | 5,382 | | 4,860 | | 5,184 | |
| | | Total non-performing assets | | $ 53,688 | | $ 54,737 | | $ 56,290 | | $ 56,354 | | $ 58,824 | |
| | | | | | | | | | | | | | |
| Past due loans (1): | | | | | | | | | | | |
| | Loans past due 30-89 days | | $ 10,745 | | $ 10,138 | | $ 14,650 | | $ 14,831 | | $ 15,611 | |
| | Loans past due 90 days or more | | 3,147 | | 2,947 | | 1,833 | | 2,591 | | 3,043 | |
| | | Total past due loans | | $ 13,892 | | $ 13,085 | | $ 16,483 | | $ 17,422 | | $ 18,654 | |
| | | | | | | | | | | | | | |
| Criticized and classified loans (2): | | | | | | | | | | | |
| | Criticized loans | | $ 39,553 | | $ 68,707 | | $ 73,925 | | $ 75,249 | | $ 76,442 | |
| | Classified loans | | 48,004 | | 52,760 | | 55,341 | | 60,335 | | 64,857 | |
| | | Total criticized and classified loans | | $ 87,557 | | $ 121,467 | | $ 129,266 | | $ 135,584 | | $ 141,299 | |
| | | | | | | | | | | | | | |
| Loans past due 30-89 days / total portfolio loans | 0.27 | % | 0.26 | % | 0.38 | % | 0.38 | % | 0.41 | % |
| Loans past due 90 days or more / total portfolio loans | 0.08 | | 0.07 | | 0.05 | | 0.07 | | 0.08 | |
| Non-performing loans / total portfolio loans | 1.22 | | 1.26 | | 1.31 | | 1.32 | | 1.40 | |
| Non-performing assets/total portfolio loans, other | | | | | | | | | | |
| | real estate and repossessed assets | | 1.33 | | 1.39 | | 1.45 | | 1.45 | | 1.53 | |
| Non-performing assets / total assets | | 0.86 | | 0.87 | | 0.90 | | 0.92 | | 0.96 | |
| Criticized and classified loans / total portfolio loans | 2.17 | | 3.08 | | 3.33 | | 3.48 | | 3.68 | |
| | | | | | | | | | | | | | |
| Allowance for loan losses | | | | | | | | | | | |
| Allowance for loan losses | | $ 45,029 | | $ 45,741 | | $ 45,483 | | $ 47,368 | | $ 47,342 | |
| Provision for credit losses | | 1,478 | | 849 | | 2,199 | | 3,144 | | 2,819 | |
| Net loan and deposit account overdraft charge-offs | 2,193 | | 600 | | 4,141 | | 2,887 | | 5,804 | |
| | | | | | | | | | | | | | |
| Annualized net loan charge-offs /average loans | 0.22 | % | 0.06 | % | 0.43 | % | 0.30 | % | 0.60 | % |
| Allowance for loan losses / total portfolio loans | 1.12 | % | 1.16 | % | 1.17 | % | 1.22 | % | 1.23 | % |
| Allowance for loan losses / non-performing loans | 0.92 | x | 0.92 | x | 0.89 | x | 0.92 | x | 0.88 | x |
| Allowance for loan losses / non-performing loans and | | | | | | | | | | |
| | loans past due | | 0.72 | x | 0.73 | x | 0.67 | x | 0.69 | x | 0.65 | x |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | Quarter Ended | |
| | | | | Sept. 30, | | June 30, | | Mar. 31, | | Dec. 31, | | Sept. 30, | |
| | | | | 2014 | | 2014 | | 2014 | | 2013 | | 2013 | |
| Capital ratios | | | | | | | | | | | |
| Tier I leverage capital | | 9.70 | % | 9.64 | % | 9.45 | % | 9.27 | % | 9.27 | % |
| Tier I risk-based capital | | 13.56 | | 13.46 | | 13.29 | | 13.06 | | 13.08 | |
| Total risk-based capital | | 14.62 | | 14.56 | | 14.40 | | 14.19 | | 14.23 | |
| Average shareholders' equity to average assets | 12.49 | | 12.43 | | 12.27 | | 12.06 | | 11.99 | |
| Tangible equity to tangible assets (3) | | 7.91 | | 7.74 | | 7.49 | | 7.35 | | 7.19 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| (1) Excludes non-performing loans. | | | | | | | | | | | |
| (2) Criticized and classified loans may include loans that are also reported as non-performing or past due. | | | | | |
| (3) See non-GAAP financial measures for additional information relating to the calculation of this ratio. | | | | | |
| NON-GAAP FINANCIAL MEASURES | | | | | | | | | | | | Page 11 |
| The following non-GAAP financial measures used by WesBanco provide information useful to investors in understanding WesBanco’s operating performance and trends, and facilitate comparisons with the performance of WesBanco’s peers. The following tables summarize the non-GAAP financial measures derived from amounts reported in WesBanco’s financial statements. |
| | | Three Months Ended | | Year to Date |
| | | Sept. 30, | | June 30, | | Mar. 31, | | Dec. 31, | | Sept. 30, | | Sept. 30, |
| (unaudited, dollars in thousands, except shares and per share amounts) | 2014 | | 2014 | | 2014 | | 2013 | | 2013 | | 2014 | 2013 |
| Return on average tangible equity: | | | | | | | | | | | | |
| | Net income (annualized) | $ 72,072 | | $ 75,708 | | $ 66,596 | | $ 60,911 | | $ 61,634 | | $ 71,478 | $ 64,941 |
| | Plus: amortization of intangibles (annualized) (1) | 1,230 | | 1,256 | | 1,305 | | 1,408 | | 1,434 | | 1,264 | 1,514 |
| | Net income before amortization of intangibles (annualized) | 73,302 | | 76,964 | | 67,901 | | 62,319 | | 63,068 | | 72,742 | 66,455 |
| | | | | | | | | | | | | | |
| | Average total shareholders' equity | 787,672 | | 773,052 | | 758,841 | | 745,136 | | 733,462 | | 773,294 | 729,244 |
| | Less: average goodwill and other intangibles, net of def. tax liability | (317,368) | | (317,679) | | (317,996) | | (318,333) | | (318,661) | | (317,678) | (319,108) |
| | Average tangible equity | 470,304 | | 455,373 | | 440,845 | | 426,803 | | 414,801 | | 455,616 | 410,136 |
| | | | | | | | | | | | | | |
| Return on average tangible equity | 15.59% | | 16.90% | | 15.40% | | 14.60% | | 15.20% | | 15.97% | 16.20% |
| | | | | | | | | | | | | | |
| Efficiency ratio: | | | | | | | | | | | | |
| | Non-interest expense | $ 39,263 | | $ 40,304 | | $ 40,095 | | $ 40,743 | | $ 40,009 | | $ 119,661 | $ 120,256 |
| | Less: restructuring and merger-related expense | - | | - | | - | | (45) | | (36) | | - | (1,265) |
| | Non-interest expense excluding restructuring and merger-related expense | 39,263 | | 40,304 | | 40,095 | | 40,698 | | 39,973 | | 119,661 | 118,991 |
| | | | | | | | | | | | | | |
| | Net interest income on a fully taxable equivalent basis | 50,449 | | 50,157 | | 49,148 | | 49,058 | | 47,938 | | 149,754 | 143,498 |
| | Non-interest income | 16,654 | | 18,241 | | 17,049 | | 16,950 | | 17,116 | | 51,944 | 52,336 |
| | Net interest income on a fully taxable equivalent basis plus non-interest income | 67,103 | | 68,398 | | 66,197 | | 66,008 | | 65,054 | | 201,698 | 195,834 |
| | Efficiency Ratio | 58.51% | | 58.93% | | 60.57% | | 61.66% | | 61.45% | | 59.33% | 60.76% |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | Period End | | | |
| | | Sept. 30, | | June 30, | | Mar. 31, | | Dec. 31, | | Sept. 30, | | | |
| | | 2014 | | 2014 | | 2014 | | 2013 | | 2013 | | | |
| Tangible book value: | | | | | | | | | | | | |
| | Total shareholders' equity | $ 788,784 | | $ 778,625 | | $ 761,117 | | $ 746,595 | | $ 736,688 | | | |
| | Less: goodwill and other intangible assets, net of def. tax liability | (317,217) | | (317,527) | | (317,840) | | (318,161) | | (318,516) | | | |
| | Tangible equity | 471,567 | | 461,098 | | 443,277 | | 428,434 | | 418,172 | | | |
| | | | | | | | | | | | | | |
| | Common shares outstanding | 29,283,675 | | 29,278,925 | | 29,212,110 | | 29,175,236 | | 29,350,061 | | | |
| | | | | | | | | | | | | | |
| Tangible book value | $ 16.10 | | $ 15.75 | | $ 15.17 | | $ 14.68 | | $ 14.25 | | | |
| | | | | | | | | | | | | | |
| Tangible equity to tangible assets: | | | | | | | | | | | | |
| | Total shareholders' equity | $ 788,784 | | $ 778,625 | | $ 761,117 | | $ 746,595 | | $ 736,688 | | | |
| | Less: goodwill and other intangible assets, net of def. tax liability | (317,217) | | (317,527) | | (317,840) | | (318,161) | | (318,516) | | | |
| | Tangible equity | 471,567 | | 461,098 | | 443,277 | | 428,434 | | 418,172 | | | |
| | | | | | | | | | | | | | |
| | Total assets | 6,278,494 | | 6,277,020 | | 6,237,577 | | 6,144,773 | | 6,138,360 | | | |
| | Less: goodwill and other intangible assets, net of def. tax liability | (317,217) | | (317,527) | | (317,840) | | (318,161) | | (318,516) | | | |
| | Tangible assets | 5,961,277 | | 5,959,493 | | 5,919,737 | | 5,826,612 | | 5,819,844 | | | |
| | | | | | | | | | | | | | |
| Tangible equity to tangible assets | 7.91% | | 7.74% | | 7.49% | | 7.35% | | 7.19% | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| (1) Tax effected at 35%. | | | | | | | | | | | | |
