July 21, 2015 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 Second Quarter 2015 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 net income and related earnings per share for the three and six months ended June 30, 2015. Net income for the three months ended June 30, 2015, excluding after-tax merger-related expenses of $0.7 million, was $22.4 million (non-GAAP measure) compared to $18.9 million for the second quarter of 2014, representing an increase of 18.5%. Diluted earnings per share, excluding after-tax merger-related expenses, were $0.58 (non-GAAP measure), compared to $0.64 per share for the second quarter of 2014. For the six month period ending June 30, 2015, net income excluding after-tax merger-related expenses of $7.1 million, was $42.6 million (non-GAAP measure) compared to $35.3 million for the first half of last year, representing an increase of 20.6%. Diluted earnings per share, excluding after-tax merger-related expenses, totaled $1.17 (non-GAAP measure), compared to $1.20 per share for the first six months of 2014. On a GAAP basis, net income for the three months ended June 30, 2015 was $21.6 million, while diluted earnings per share were $0.56, compared to $18.9 million or $0.64 per diluted share for the second quarter of 2014. Net income for the first half of 2015 was $35.5 million or $0.97 per diluted share compared to $35.3 million or $1.20 per diluted share for the same period of 2014. For the three and six month periods, temporary extra operating costs of $0.3 million and $0.8 million, after tax, were incurred between ESB closing and branch systems conversion.
| | For the Three Months Ended June 30, | | For the Six Months Ended June 30, |
| | 2015 | 2014 | | 2015 | 2014 |
(unaudited, dollars in thousands, except per share amounts) | Net Income | Diluted Earnings Per Share | Net Income | Diluted Earnings Per Share | | Net Income | Diluted Earnings Per Share | Net Income | Diluted Earnings Per Share |
Net income (Non-GAAP)(1) | $ 22,358 | $ 0.58 | $ 18,875 | $ 0.64 | | $ 42,563 | $ 1.17 | $ 35,296 | $ 1.20 |
| Less: After tax merger-related expenses | (725) | (0.02) | - | - | | (7,051) | (0.20) | - | - |
| Net income (GAAP) | $ 21,633 | $ 0.56 | $ 18,875 | $ 0.64 | | $ 35,512 | $ 0.97 | $ 35,296 | $ 1.20 |
(1) Non-GAAP net income excludes after-tax merger related expenses. Non-GAAP measures are defined on page 11 under "Non-GAAP Financial Measures." |
WesBanco’s results for the three and six months ended June 30, 2015 included ESB Financial Corporation’s (“ESB”) results from February 10, 2015, the date of consummation of the merger. ESB was a Pennsylvania thrift holding company, headquartered in Ellwood City, Lawrence County, just to the northwest of Pittsburgh, PA, with approximately $1.9 billion in assets and 23 offices in four southwestern PA counties, three of which are in the Pittsburgh Metropolitan Statistical Area (“MSA”). WesBanco now has $8.4 billion in total assets and provides banking services through 142 branch locations and 130 ATMs in three states. The transaction expanded WesBanco's franchise in western Pennsylvania from 16 to 38 offices with approximately $1.7 billion in total deposits at June 30, 2015.
Mr. Clossin commented, “The second quarter reflects continued improvement in financial results achieved from both our legacy markets and from our February merger with ESB. Net income excluding merger-related expenses increased 18.5% from the second quarter of last year and 10.6% from the first quarter of this year. Our efficiency ratio continues to improve and now stands in the mid 50’s. We continue to experience positive operating leverage with revenue growth exceeding expense growth. Our ability to make sound investments and realize the return on those investments is a relentless focus of ours. Net interest income, a reflection of overall success, has improved in each of the last eight quarters, growing 25.8% since the second quarter of last year. This improvement has occurred despite anticipated pressure on the net interest margin from asset mix changes resulting from the acquisition as well as from broader market interest rate declines. Annualized loan growth was 7.2% from December 31, 2014, exclusive of ESB, as total originations increased. Most credit quality metrics improved in the second quarter, despite an increase in net charge-offs and the provision for credit losses, as total delinquencies and non-performing, criticized and classified loans all decreased as a percentage of loans. Major components of non-interest income are also improving as trust fees, service charges on deposits and electronic banking fees grew from the second quarter of last year. WesBanco has established a solid record of improvement and achievement.”
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Financial Condition
Total assets at June 30, 2015 increased 33.4% or $2.1 billion compared to June 30, 2014 due to the acquisition of ESB and organic growth exclusive of ESB. Portfolio loans increased $987.5 million, with $700.9 million from the acquisition and $286.6 million from loan growth exclusive of ESB. Organic loan growth from December 31, 2014, annualized, was 7.2%, primarily achieved through $825 million in loan originations for the first half of 2015 compared to $625 million last year. Loan growth occurred in all major loan categories, with approximately 25.1% of the growth in commercial and industrial loans. Loan growth was driven by increased business activity, additional commercial and residential lending personnel in our urban markets, focused marketing efforts and continued improvement in loan origination processes. Deposits increased $1.1 billion compared to June 30, 2014, primarily due to the acquisition. Non-interest bearing deposits, excluding the acquisition, were up 7.0% over the last year. Excluding certificates of deposit, deposits increased $149.6 million or 4.1% from June 30, 2014, at an annualized rate of 5.2% for the first half of 2015, with deposits from Marcellus and Utica shale gas customers contributing to the increase. Certificates of deposit, excluding ESB, decreased $211.2 million due to lower rate offerings for maturing CDs.
WesBanco continues to maintain strong regulatory capital ratios after the ESB acquisition and implementation of the new BASEL III capital standards. At June 30, 2015, Tier I leverage was 9.29%, Tier I Risk-Based capital was 13.47%, and Total Risk-Based capital was 14.30%. Both consolidated and bank-level regulatory capital ratios are well above the applicable, revised “well-capitalized” standards promulgated by bank regulators, as well as the recently finalized BASEL III capital standards. As required by BASEL III, a new ratio for 2015, Common Equity Tier 1 capital ratio (CET 1), was 11.71% for the second quarter of 2015, significantly above the requirement of 4.5%. Total tangible equity to tangible assets (non-GAAP measure) was 7.68% at June 30, 2015, decreasing from 7.74% at June 30, 2014, and from year-end’s 7.88% due to accelerating growth in assets, primarily loans, as well as securities and lower accumulated other comprehensive income from unrealized security losses. Strong earnings and improved total capital have enabled WesBanco to increase the quarterly dividend rate, currently at $0.23 per share, eight times over the last five years, cumulatively representing a 64% increase. The most recent increase was $0.01 per share in the first quarter of 2015.
Credit Quality
The provision for credit losses was $2.7 million in the second quarter of 2015 compared to $0.8 million in the same quarter of 2014. Year-to-date, the provision was $4.0 million compared to $3.0 million in the first six months of 2014. Net charge-offs for the first half of 2015 were $4.9 million or 0.21% of average portfolio loans compared to $4.7 million or 0.25% in first half of 2014. The increase in both the provision and charge-offs were primarily due to one non-energy industry-related commercial credit placed on nonaccrual and charged-down by $1.3 million. Portfolio growth also impacted the provision. However, other credit quality metrics, including the loans acquired in the ESB acquisition, continue to improve overall.
Non-performing loans, including TDRs, as well as criticized and classified loans and delinquencies, improved as a percentage of total portfolio loans from their pre-acquisition levels in the fourth quarter of 2014 and from the second quarter of 2014. Total non-performing loans were 1.24% of total loans at June 30, 2015, decreasing from 1.26% of total loans at June 30, 2014. Criticized and classified loans were 1.68% of total loans, improving from 3.08% of total loans a year ago. Past due loans at June 30, 2015 were 0.26% of total loans, decreasing from 0.33% at June 30, 2014. Non-performing loans were up slightly as of June 30, 2015 as compared to March 31, 2015, primarily due to the aforementioned commercial credit being placed on non-accrual at quarter-end.
The allowance for loan losses represented 0.88% of total portfolio loans at June 30, 2015. If the acquired ESB loans (which were recorded at fair value at the date of acquisition) were excluded from the ratio, the allowance would approximate 1.03% of the adjusted loan total as compared to 1.16% at the end of the second quarter of 2014.
Net Interest Income
Net interest income increased $12.5 million or 25.8% in the second quarter of 2015 compared to the second quarter of 2014 due to a 33.2% increase in average earning assets, primarily through the acquisition, and through a 7.8% increase in average loan balances, exclusive of ESB, partially offset by a 20 basis point decrease in the net interest margin. Year-to-date, net interest income increased $20.1 million or 21.0%. Net interest income has shown consistent growth, increasing in each of the last eight consecutive quarters.
The net interest margin decreased to 3.44% in the second quarter compared to 3.64% in the same quarter of 2014. The decrease in the net interest margin is primarily due to a 51 basis point decline in the average rate earned on securities due to lower yields on ESB’s retained securities portfolio and other purchased securities. The lower securities rates were due to the low interest rate environment and were somewhat mitigated by a significantly smaller decrease in rates on loans of only 10 basis points, and a reduction in funding costs of 11 basis points. In addition, the aforementioned loan growth improves total asset yields as the average rate on loans is higher than the average rate on securities. Funding costs continued to decrease in 2015 as a result of a 33 basis point decrease in the average rate on CDs as higher-rate CDs matured. Overall, average deposits increased by 23.9% in the second quarter of 2015 compared to the same quarter of 2014 with a rate decrease of 12 basis points. Increased average FHLB borrowings in the first half of 2015 were generally short to medium-term maturities resulting in a decrease in the second quarter rate by 203 basis points compared to the second quarter of 2014. In addition, the average rate on other borrowings decreased 98 basis points through the prepayment of a higher-rate
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$22.0 million repurchase agreement with another bank in the third quarter of 2014, and through maturities. The decline in the net interest margin is also due to asset and liability mix shifts post-ESB, with a greater percentage of lower-yielding investment securities and a greater percentage of CDs versus lower-cost deposit types. Excluding accretion of various purchase accounting adjustments relating to recent acquisitions and the interest recognized on a tax refund in 2014, the net interest margin would have been 3.32% and 3.38% in the second quarter and year-to-date periods of 2015, respectively, compared to 3.57% and 3.58% for the same periods of 2014.
Non-Interest Income
For the second quarter of 2015, non-interest income was relatively unchanged compared to the second quarter of 2014 primarily due to a $1.0 million bank-owned life insurance death benefit recorded in the second quarter of 2014. However, excluding such death benefit, non-interest income increased in the second quarter of 2015 by $0.8 million or 4.8%. Trust fees increased $0.3 million or 5.1% for the quarter from higher fees, customer development initiatives and overall market improvements. Total trust assets of $3.8 billion at June 30, 2015 were unchanged from June 30, 2014. Service charges on deposits increased $0.2 million or 4.2% from the addition of ESB and an overall higher fee schedule. Electronic banking fees increased $0.2 million or 7.0%. Net gains on sales of other assets improved by $0.3 million due to gains on sales of other real estate in 2015 and decreased losses on other assets. For the first six months of 2015, non-interest income increased by $1.0 million or 2.7%, reflecting similar trends as in the second quarter, however trust fees and electronic banking fees increased 6.2% and 8.6% respectively, compared to the first half of 2014.
Non-Interest Expense
In the second quarter of 2015, net revenue growth of 18.5% outpaced non-interest expense growth of 12.8%, excluding merger-related expenses, compared to the second quarter of 2014. As a result, the efficiency ratio (net of merger-related expenses) improved in the current quarter to 56.1% from 58.9% in the second quarter of 2014. Overall non-interest expense from the combined company increased $6.3 million in the second quarter, principally from the acquisition, and $1.1 million of merger-related expenses. Excluding merger-related expenses, non-interest expense increased $5.2 million or 12.8%. Salaries and wages increased $2.4 million or 14.2%, due to a 17.4% increase in average full-time equivalent employees and routine annual adjustments to compensation, partially offset by increased deferrals of loan costs. Employee benefits expense increased $1.3 million or 23.1%, primarily from increased pension, health insurance, social security contributions and other benefit plan costs. Net occupancy increased $0.4 million principally due to increased building-related costs including utilities and depreciation. Amortization of intangible assets increased $0.5 million or 95.9% from additional ESB intangible assets, primarily related to core deposits. For the first half of 2015, non-interest expense for the combined company increased by $8.8 million or 10.9%, excluding merger-related expenses, compared to the first half of 2014. Increases were also primarily from salaries and wages, employee benefits, occupancy and amortization of intangibles.
Financial Results Conference Call
WesBanco will also host a conference call to discuss the Company's financial results for the second quarter of 2015 on Wednesday, July 22, 2015 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 https://www.webcaster4.com/Webcast/Page/905/9406. 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 $8.4 billion, operating through 142 branch locations and 130 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, 2014 and documents subsequently filed by WesBanco with the Securities and Exchange Commission (“SEC”), including WesBanco’s Form 10-Q for the quarter ended March 31, 2015, 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 Six Months Ended |
| STATEMENT OF INCOME | June 30, | | June 30, |
| Interest and dividend income | 2015 | | 2014 | | % Change | | 2015 | | 2014 | | % Change |
| | Loans, including fees | $ 52,316 | | $ 42,546 | | 23.0 | | $ 100,036 | | $ 85,291 | | 17.3 |
| | Interest and dividends on securities: | | | | | | | | | | | |
| | | Taxable | 10,043 | | 7,452 | | 34.8 | | 18,542 | | 14,676 | | 26.3 |
| | | Tax-exempt | 4,052 | | 3,435 | | 18.0 | | 7,585 | | 6,821 | | 11.2 |
| | | | Total interest and dividends on securities | 14,095 | | 10,887 | | 29.5 | | 26,127 | | 21,497 | | 21.5 |
| | Other interest income | 318 | | 611 | | (48.0) | | 954 | | 713 | | 33.8 |
| Total interest and dividend income | 66,729 | | 54,044 | | 23.5 | | 127,117 | | 107,501 | | 18.2 |
| Interest expense | | | | | | | | | | | |
| | Interest bearing demand deposits | 485 | | 395 | | 22.8 | | 907 | | 768 | | 18.1 |
| | Money market deposits | 490 | | 466 | | 5.2 | | 945 | | 907 | | 4.2 |
| | Savings deposits | 163 | | 133 | | 22.6 | | 311 | | 263 | | 18.3 |
| | Certificates of deposit | 2,869 | | 3,422 | | (16.2) | | 5,741 | | 7,052 | | (18.6) |
| | | | Total interest expense on deposits | 4,007 | | 4,416 | | (9.3) | | 7,904 | | 8,990 | | (12.1) |
| | Federal Home Loan Bank borrowings | 949 | | 175 | | 442.3 | | 1,507 | | 386 | | 290.4 |
| | Other short-term borrowings | 92 | | 350 | | (73.7) | | 165 | | 907 | | (81.8) |
| | Junior subordinated debt owed to unconsolidated subsidiary trusts | 888 | | 796 | | 11.6 | | 1,784 | | 1,587 | | 12.4 |
| | | | Total interest expense | 5,936 | | 5,737 | | 3.5 | | 11,360 | | 11,870 | | (4.3) |
| Net interest income | 60,793 | | 48,307 | | 25.8 | | 115,757 | | 95,631 | | 21.0 |
| | Provision for credit losses | 2,681 | | 849 | | 215.8 | | 3,970 | | 3,048 | | 30.2 |
| Net interest income after provision for credit losses | 58,112 | | 47,458 | | 22.4 | | 111,787 | | 92,583 | | 20.7 |
| Non-interest income | | | | | | | | | | | |
| | Trust fees | 5,476 | | 5,210 | | 5.1 | | 11,529 | | 10,858 | | 6.2 |
| | Service charges on deposits | 4,249 | | 4,078 | | 4.2 | | 7,918 | | 7,937 | | (0.2) |
| | Electronic banking fees | 3,496 | | 3,267 | | 7.0 | | 6,821 | | 6,281 | | 8.6 |
| | Net securities brokerage revenue | 1,842 | | 2,003 | | (8.0) | | 3,901 | | 3,832 | | 1.8 |
| | Bank-owned life insurance | 989 | | 1,821 | | (45.7) | | 2,244 | | 2,695 | | (16.7) |
| | Net gains on sales of mortgage loans | 407 | | 475 | | (14.3) | | 679 | | 628 | | 8.1 |
| | Net securities gains | - | | 165 | | (100.0) | | 22 | | 175 | | (87.4) |
| | Net gain / (loss) on other real estate owned and other assets | 152 | | (165) | | 192.1 | | 185 | | (52) | | 455.8 |
| | Other income | 1,461 | | 1,387 | | 5.3 | | 2,955 | | 2,936 | | 0.6 |
| | | | Total non-interest income | 18,072 | | 18,241 | | (0.9) | | 36,254 | | 35,290 | | 2.7 |
| Non-interest expense | | | | | | | | | | | |
| | Salaries and wages | 19,300 | | 16,904 | | 14.2 | | 37,636 | | 33,370 | | 12.8 |
| | Employee benefits | 6,807 | | 5,529 | | 23.1 | | 14,123 | | 11,238 | | 25.7 |
| | Net occupancy | 3,243 | | 2,857 | | 13.5 | | 6,765 | | 6,348 | | 6.6 |
| | Equipment | 3,017 | | 2,914 | | 3.5 | | 5,958 | | 5,698 | | 4.6 |
| | Marketing | 1,715 | | 1,713 | | 0.1 | | 2,707 | | 2,716 | | (0.3) |
| | FDIC insurance | 1,040 | | 880 | | 18.2 | | 1,950 | | 1,757 | | 11.0 |
| | Amortization of intangible assets | 944 | | 482 | | 95.9 | | 1,510 | | 977 | | 54.6 |
| | Restructuring and merger-related expense | 1,115 | | - | | 100.0 | | 10,848 | | - | | 100.0 |
| | Other operating expenses | 9,408 | | 9,025 | | 4.2 | | 18,550 | | 18,294 | | 1.4 |
| | | | Total non-interest expense | 46,589 | | 40,304 | | 15.6 | | 100,047 | | 80,398 | | 24.4 |
| Income before provision for income taxes | 29,595 | | 25,395 | | 16.5 | | 47,994 | | 47,475 | | 1.1 |
| | Provision for income taxes | 7,962 | | 6,520 | | 22.1 | | 12,482 | | 12,179 | | 2.5 |
| Net Income | $ 21,633 | | $ 18,875 | | 14.6 | | $ 35,512 | | $ 35,296 | | 0.6 |
| | | | | | | | | | | | | | | |
| Taxable equivalent net interest income | $ 62,975 | | $ 50,157 | | 25.6 | | $ 119,841 | | $ 99,304 | | 20.7 |
| | | | | | | | | | | | | | | |
| Per common share data | | | | | | | | | | | |
| Net income per common share - basic | $ 0.56 | | $ 0.65 | | (13.8) | | $ 0.97 | | $ 1.21 | | (19.8) |
| Net income per common share - diluted | 0.56 | | 0.64 | | (12.5) | | 0.97 | | 1.20 | | (19.2) |
| Dividends declared | 0.23 | | 0.22 | | 4.5 | | 0.46 | | 0.44 | | 4.5 |
| Book value (period end) | | | | | | | 28.42 | | 26.59 | | 6.9 |
| Tangible book value (period end) (1) | | | | | | | 15.72 | | 15.75 | | (0.2) |
| Average common shares outstanding - basic | 38,472,229 | | 29,242,180 | | 31.6 | | 36,443,951 | | 29,212,347 | | 24.8 |
| Average common shares outstanding - diluted | 38,531,700 | | 29,321,927 | | 31.4 | | 36,504,671 | | 29,293,424 | | 24.6 |
| Period end common shares outstanding | 38,519,170 | | 29,278,925 | | 31.6 | | 38,519,170 | | 29,278,925 | | 31.6 |
| | | | | | | | | | | | | | | |
| (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 Six Months Ended | | | | | |
| | | June 30, | | | | | | |
| | | 2015 | | 2014 | | % Change | | | | | | |
| | | | | | | | | | | | | |
| Return on average assets | 0.92 | % | 1.15 | % | (20.00) | % | | | | | |
| Return on average equity | 7.15 | | 9.29 | | (23.04) | | | | | | |
| Return on average tangible equity (1) | 12.14 | | 16.17 | | (24.92) | | | | | | |
| Yield on earning assets (2) | 3.82 | | 4.07 | | (6.14) | | | | | | |
| Cost of interest bearing liabilities | 0.42 | | 0.54 | | (22.22) | | | | | | |
| Net interest spread (2) | 3.40 | | 3.53 | | (3.68) | | | | | | |
| Net interest margin (2) | 3.49 | | 3.63 | | (3.86) | | | | | | |
| Efficiency (1) (2) | | 57.14 | | 59.73 | | (4.34) | | | | | | |
| Average loans to average deposits | 77.53 | | 75.46 | | 2.74 | | | | | | |
| Annualized net loan charge-offs/average loans | 0.21 | | 0.25 | | (16.00) | | | | | | |
| Effective income tax rate | 26.01 | | 25.65 | | 1.40 | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | For the Quarter Ended | | |
| | | June 30, | | Mar. 31, | | Dec. 31, | | Sept. 30, | | June 30, | | |
| | | 2015 | | 2015 | | 2014 | | 2014 | | 2014 | | |
| | | | | | | | | | | | | |
| Return on average assets | 1.05 | % | 0.75 | % | 1.04 | % | 1.14 | % | 1.22 | % | |
| Return on average equity | 7.89 | | 5.89 | | 8.17 | | 9.15 | | 9.79 | | |
| Return on average tangible equity (1) | 13.67 | | 10.62 | | 13.77 | | 15.59 | | 16.90 | | |
| Yield on earning assets (2) | 3.76 | | 3.93 | | 3.96 | | 3.98 | | 4.06 | | |
| Cost of interest bearing liabilities | 0.41 | | 0.43 | | 0.47 | | 0.51 | | 0.52 | | |
| Net interest spread (2) | 3.35 | | 3.50 | | 3.49 | | 3.47 | | 3.54 | | |
| Net interest margin (2) | 3.44 | | 3.59 | | 3.60 | | 3.58 | | 3.64 | | |
| Efficiency (1) (2) | | 56.11 | | 58.24 | | 60.37 | | 58.51 | | 58.93 | | |
| Average loans to average deposits | 76.52 | | 77.98 | | 79.07 | | 77.52 | | 75.40 | | |
| Annualized net loan charge-offs/average loans | 0.25 | | 0.16 | | 0.23 | | 0.22 | | 0.06 | | |
| Effective income tax rate | 26.90 | | 24.59 | | 23.89 | | 25.93 | | 25.67 | | |
| Trust assets, market value at period end | $ 3,843,792 | | $ 3,852,165 | | $ 3,840,540 | | $ 3,783,774 | | $ 3,844,116 | | |
| | | | | | | | | | | | | |
| (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 | June 30, | | Dec. 31, | December 31, 2014 |
| Assets | | 2015 | 2014 | % Change | 2014 | to June 30, 2015 |
| Cash and due from banks | $ 88,336 | $ 81,790 | 8.0 | $ 85,597 | 3.2 |
| Due from banks - interest bearing | 20,402 | 12,698 | 60.7 | 8,405 | 142.7 |
| Securities: | | | | | |
| | Available-for-sale, at fair value | 1,594,658 | 1,006,079 | 58.5 | 917,424 | 73.8 |
| | Held-to-maturity (fair values of $864,226; $628,540 and $619,617, respectively) | 848,416 | 607,695 | 39.6 | 593,670 | 42.9 |
| | | Total securities | 2,443,074 | 1,613,774 | 51.4 | 1,511,094 | 61.7 |
| Loans held for sale | 11,160 | 10,641 | 4.9 | 5,865 | 90.3 |
| Portfolio loans: | | | | | |
| | Commercial real estate | 2,194,113 | 1,940,872 | 13.0 | 1,945,460 | 12.8 |
| | Commercial and industrial | 733,478 | 578,665 | 26.8 | 638,410 | 14.9 |
| | Residential real estate | 1,241,470 | 898,357 | 38.2 | 928,770 | 33.7 |
| | Home equity | 379,740 | 295,127 | 28.7 | 330,031 | 15.1 |
| | Consumer | 384,844 | 233,097 | 65.1 | 244,095 | 57.7 |
| Total portfolio loans, net of unearned income | 4,933,645 | 3,946,118 | 25.0 | 4,086,766 | 20.7 |
| Allowance for loan losses | (43,419) | (45,741) | 5.1 | (44,654) | 2.8 |
| | | Net portfolio loans | 4,890,226 | 3,900,377 | 25.4 | 4,042,112 | 21.0 |
| Premises and equipment, net | 111,692 | 92,106 | 21.3 | 93,135 | 19.9 |
| Accrued interest receivable | 24,739 | 19,087 | 29.6 | 18,481 | 33.9 |
| Goodwill and other intangible assets, net | 492,997 | 320,449 | 53.8 | 319,506 | 54.3 |
| Bank-owned life insurance | 154,980 | 121,878 | 27.2 | 123,298 | 25.7 |
| Other assets | 137,813 | 104,220 | 32.2 | 89,072 | 54.7 |
| Total Assets | $ 8,375,419 | $ 6,277,020 | 33.4 | $ 6,296,565 | 33.0 |
| | | | | | | | | |
| Liabilities | | | | | |
| Deposits: | | | | | | |
| | Non-interest bearing demand | $ 1,257,932 | $ 1,021,414 | 23.2 | $ 1,061,075 | 18.6 |
| | Interest bearing demand | 1,156,949 | 871,487 | 32.8 | 885,037 | 30.7 |
| | Money market | 989,888 | 969,518 | 2.1 | 954,957 | 3.7 |
| | Savings deposits | 1,075,711 | 829,155 | 29.7 | 842,818 | 27.6 |
| | Certificates of deposit | 1,778,565 | 1,425,829 | 24.7 | 1,305,096 | 36.3 |
| | | Total deposits | 6,259,045 | 5,117,403 | 22.3 | 5,048,983 | 24.0 |
| Federal Home Loan Bank borrowings | 781,332 | 138,596 | 463.7 | 223,126 | 250.2 |
| Other short-term borrowings | 73,868 | 94,745 | (22.0) | 80,690 | (8.5) |
| Junior subordinated debt owed to unconsolidated subsidiary trusts | 106,196 | 106,156 | 0.0 | 106,176 | 0.0 |
| | | Total borrowings | 961,396 | 339,497 | 183.2 | 409,992 | 134.5 |
| Accrued interest payable | 2,542 | 2,306 | 10.2 | 1,620 | 56.9 |
| Other liabilities | �� 57,783 | 39,189 | 47.4 | 47,780 | 20.9 |
| Total Liabilities | 7,280,766 | 5,498,395 | 32.4 | 5,508,375 | 32.2 |
| | | | | | | | | |
| Shareholders' Equity | | | | | |
| Preferred stock, no par value; 1,000,000 shares authorized; | | | | | |
| | none outstanding | - | - | - | - | - |
| Common stock, $2.0833 par value; 100,000,000 and 50,000,000 shares authorized in 2015 | | | | |
| | and 2014, respectively; 38,546,042; 29,367,511 and 29,367,511 shares | | | | | |
| | issued, respectively; 38,519,170; 29,278,925 and 29,298,188 shares | 80,304 | 61,182 | 31.3 | 61,182 | 31.3 |
| | outstanding, respectively | | | | | |
| Capital surplus | 516,990 | 244,029 | 111.9 | 244,661 | 111.3 |
| Retained earnings | 522,388 | 482,786 | 8.2 | 504,578 | 3.5 |
| Treasury stock (26,872; 88,586 and 69,323 shares - at cost, respectively) | (867) | (2,748) | 68.4 | (2,151) | 59.7 |
| Accumulated other comprehensive loss | (21,702) | (5,393) | (302.4) | (18,825) | (15.3) |
| Deferred benefits for directors | (2,460) | (1,231) | (99.8) | (1,255) | (96.0) |
| Total Shareholders' Equity | 1,094,653 | 778,625 | 40.6 | 788,190 | 38.9 |
| Total Liabilities and Shareholders' Equity | $ 8,375,419 | $ 6,277,020 | 33.4 | $ 6,296,565 | 33.0 |
| WESBANCO, INC. | | | |
| Consolidated Selected Financial Highlights | | | Page 7 |
| (unaudited, dollars in thousands, except shares) | | | |
| Balance sheets | June 30, | March 31, | |
| Assets | | | 2015 | 2015 | % Change |
| Cash and due from banks | $ 88,336 | $ 75,103 | 17.6% |
| Due from banks - interest bearing | 20,402 | 17,871 | 14.2% |
| Securities: | | | |
| | Available-for-sale, at fair value | 1,594,658 | 1,654,264 | (3.6%) |
| | Held-to-maturity (fair values of $864,226 and 772,843, respectively) | 848,416 | 743,925 | 14.0% |
| | | Total securities | 2,443,074 | 2,398,189 | 1.9% |
| Loans held for sale | 11,160 | 6,064 | 84.0% |
| Portfolio Loans: | | | |
| | Commercial real estate | 2,194,113 | 2,196,944 | (0.1%) |
| | Commercial and industrial | 733,478 | 709,621 | 3.4% |
| | Residential real estate | 1,241,470 | 1,239,163 | 0.2% |
| | Home equity | 379,740 | 362,163 | 4.9% |
| | Consumer | 384,844 | 365,830 | 5.2% |
| Total portfolio loans, net of unearned income | 4,933,645 | 4,873,721 | 1.2% |
| Allowance for loan losses | (43,419) | (44,173) | (1.7%) |
| | | Net portfolio loans | 4,890,226 | 4,829,548 | 1.3% |
| Premises and equipment, net | 111,692 | 110,900 | 0.7% |
| Accrued interest receivable | 24,739 | 25,232 | (2.0%) |
| Goodwill and other intangible assets, net | 492,997 | 493,176 | (0.0%) |
| Bank-owned life insurance | 154,980 | 153,991 | 0.6% |
| Other assets | 137,813 | 123,205 | 11.9% |
| Total Assets | $ 8,375,419 | $ 8,233,279 | 1.7% |
| | | | | | | |
| Liabilities | | | |
| Deposits: | | | |
| | Non-interest bearing demand | $ 1,257,932 | $ 1,249,521 | 0.7% |
| | Interest bearing demand | 1,156,949 | 1,199,801 | (3.6%) |
| | Money market | 989,888 | 1,018,184 | (2.8%) |
| | Savings deposits | 1,075,711 | 1,064,808 | 1.0% |
| | Certificates of deposit | 1,778,565 | 1,883,888 | (5.6%) |
| | | Total deposits | 6,259,045 | 6,416,202 | (2.4%) |
| Federal Home Loan Bank borrowings | 781,332 | 432,456 | 80.7% |
| Other short-term borrowings | 73,868 | 76,630 | (3.6%) |
| Junior subordinated debt owed to unconsolidated subsidiary trusts | 106,196 | 142,269 | (25.4%) |
| | | Total borrowings | 961,396 | �� 651,355 | 47.6% |
| Accrued interest payable | 2,542 | 2,297 | 10.7% |
| Other liabilities | 57,783 | 72,041 | (19.8%) |
| Total liabilities | 7,280,766 | 7,141,895 | 1.9% |
| | | | | | | |
| Shareholders' Equity | | | |
| Preferred stock, no par value; 1,000,000 shares authorized; | | |
| | none outstanding | - | - | - |
| Common stock, $2.0833 par value; 100,000,000 and 50,000,000 shares authorized, |
| | respectively; 38,546,042 and 38,546,042 shares issued, respectively; | | | |
| | 38,519,170 and 38,449,812 shares outstanding, respectively | 80,304 | 80,304 | - |
| Capital surplus | 516,990 | 520,596 | (0.7%) |
| Retained earnings | 522,388 | 509,622 | 2.5% |
| Treasury stock ( 26,872 and 96,230 shares - at cost) | (867) | (3,061) | 71.7% |
| Accumulated other comprehensive income (loss) | (21,702) | (13,624) | (59.3%) |
| Deferred benefits for directors | (2,460) | (2,453) | (0.3%) |
| Total Shareholders' Equity | 1,094,653 | 1,091,384 | 0.3% |
| Total Liabilities and Shareholders' Equity | $ 8,375,419 | $ 8,233,279 | 1.7% |
| WESBANCO, INC. | | | | | | | | | | | | |
| Consolidated Selected Financial Highlights | | | | | | | Page 8 | |
| (unaudited, dollars in thousands) | | | | | | | | | | | | |
| Average balance sheet and | | | | | | | | | | | | |
| net interest margin analysis | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | |
| | 2015 | 2014 | | 2015 | 2014 | |
| | Average | Average | | Average | Average | | Average | Average | | Average | Average | |
| Assets | Balance | Rate | | Balance | Rate | | Balance | Rate | | Balance | Rate | |
| Due from banks - interest bearing | $ 17,291 | 0.16 | % | $ 24,134 | 0.33 | % | $ 19,959 | 0.16 | % | $ 37,567 | 0.22 | % |
| Loans, net of unearned income (1) | 4,902,309 | 4.28 | | 3,898,740 | 4.38 | | 4,725,764 | 4.27 | | 3,886,334 | 4.43 | |
| Securities: (2) | | | | | | | | | | | | |
| Taxable | 1,861,123 | 2.16 | | 1,176,963 | 2.53 | | 1,641,531 | 2.26 | | 1,159,072 | 2.53 | |
| Tax-exempt (3) | 542,654 | 4.60 | | 406,718 | 5.20 | | 499,102 | 4.68 | | 403,275 | 5.20 | |
| Total securities | 2,403,777 | 2.71 | | 1,583,681 | 3.22 | | 2,140,633 | 2.82 | | 1,562,347 | 3.22 | |
| Other earning assets (4) | 23,515 | 5.29 | | 10,853 | 21.82 | | 19,993 | 9.38 | | 11,209 | 11.97 | |
| Total earning assets (3) | 7,346,892 | 3.76 | % | 5,517,408 | 4.06 | % | 6,906,349 | 3.82 | % | 5,497,457 | 4.07 | % |
| Other assets | 932,695 | | | 702,230 | | | 890,051 | | | 705,703 | | |
| Total Assets | $ 8,279,587 | | | $ 6,219,638 | | | $ 7,796,400 | | | $ 6,203,160 | | |
| | | | | | | | | | | | | |
| Liabilities and Shareholders' Equity | | | | | | | | | | | | |
| Interest bearing demand deposits | $ 1,175,022 | 0.17 | % | $ 905,080 | 0.18 | % | $ 1,094,115 | 0.17 | % | $ 896,347 | 0.17 | % |
| Money market accounts | 1,027,245 | 0.19 | | 974,731 | 0.19 | | 1,005,218 | 0.19 | | 960,153 | 0.19 | |
| Savings deposits | 1,072,988 | 0.06 | | 824,641 | 0.06 | | 1,018,449 | 0.06 | | 816,720 | 0.06 | |
| Certificates of deposit | 1,848,654 | 0.62 | | 1,444,224 | 0.95 | | 1,744,271 | 0.66 | | 1,474,247 | 0.96 | |
| Total interest bearing deposits | 5,123,909 | 0.31 | | 4,148,676 | 0.43 | | 4,862,053 | 0.33 | | 4,147,467 | 0.44 | |
| Federal Home Loan Bank borrowings | 484,505 | 0.79 | | 24,926 | 2.82 | | 361,427 | 0.84 | | 29,949 | 2.60 | |
| Other borrowings | 100,099 | 0.37 | | 104,109 | 1.35 | | 106,647 | 0.31 | | 109,687 | 1.67 | |
| Junior subordinated debt | 129,189 | 2.76 | | 106,151 | 3.01 | | 124,128 | 2.90 | | 106,146 | 3.02 | |
| Total interest bearing liabilities | 5,837,702 | 0.41 | % | 4,383,862 | 0.52 | % | 5,454,255 | 0.42 | % | 4,393,249 | 0.54 | % |
| Non-interest bearing demand deposits | 1,282,327 | | | 1,022,331 | | | 1,233,328 | | | 1,002,822 | | |
| Other liabilities | 59,256 | | | 40,393 | | | 107,473 | | | 41,104 | | |
| Shareholders' equity | 1,100,302 | | | 773,052 | | | 1,001,344 | | | 765,985 | | |
| Total Liabilities and Shareholders' Equity | $ 8,279,587 | | | $ 6,219,638 | | | $ 7,796,400 | | | $ 6,203,160 | | |
| Taxable equivalent net interest spread | | 3.35 | % | | 3.54 | % | | 3.40 | % | | 3.53 | % |
| Taxable equivalent net interest margin | | 3.44 | % | | 3.64 | % | | 3.49 | % | | 3.63 | % |
| | | | | | | | | | | | | |
| (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 $0.3 million and $0.8 million for the three months ended June 30, 2015 and 2014, respectively, and | |
| $0.7 million and $1.7 million for the six months ended June 30, 2015 and 2014, respectively. | | | | | | | |
| Additionally, loan accretion included in interest income on loans acquired from prior acquisitions was $1.1 million and $0.3 million for the three months | |
| ended June 30, 2015 and 2014, respectively, and $1.9 million and $0.7 million for the six months ended June 30, 2015 and 2014, respectively, |
| while accretion on interest bearing liabilities acquired from the prior acquisitions was $1.7 and $0.2 million for the three months ended June 30, 2015 |
| and 2014, respectively, and $1.9 million and $0.4 million for the six months ended June 30, 2015 and 2014, 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 three and six months ended June 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 | June 30, | | Mar. 31, | | Dec. 31, | | Sept. 30, | | June 30, |
| Interest income | 2015 | | 2015 | | 2014 | | 2014 | | 2014 |
| | Loans, including fees | $ 52,316 | | $ 47,713 | | $ 43,491 | | $ 43,399 | | $ 42,546 |
| | Interest and dividends on securities: | | | | | | | | | |
| | | Taxable | 10,043 | | 8,498 | | 7,181 | | 7,375 | | 7,452 |
| | | Tax-exempt | 4,052 | | 3,533 | | 3,356 | | 3,413 | | 3,435 |
| | | | Total interest and dividends on securities | 14,095 | | 12,031 | | 10,537 | | 10,788 | | 10,887 |
| | Other interest income | 318 | | 635 | | 157 | | 116 | | 611 |
| Total interest and dividend income | 66,729 | | 60,379 | | 54,185 | | 54,303 | | 54,044 |
| Interest expense | | | | | | | | | |
| | Interest bearing demand deposits | 485 | | 422 | | 400 | | 399 | | 395 |
| | Money market deposits | 490 | | 456 | | 483 | | 487 | | 466 |
| | Savings deposits | 163 | | 148 | | 134 | | 135 | | 133 |
| | Certificates of deposit | 2,869 | | 2,872 | | 2,980 | | 3,254 | | 3,422 |
| | | | Total interest expense on deposits | 4,007 | | 3,898 | | 3,997 | | 4,275 | | 4,416 |
| | Federal Home Loan Bank borrowings | 949 | | 557 | | 318 | | 264 | | 175 |
| | Other short-term borrowings | 92 | | 75 | | 78 | | 348 | | 350 |
| | Junior subordinated debt owed to unconsolidated subsidiary trusts | 888 | | 894 | | 806 | | 805 | | 796 |
| | | | Total interest expense | 5,936 | | 5,424 | | 5,199 | | 5,692 | | 5,737 |
| Net interest income | 60,793 | | 54,955 | | 48,986 | | 48,611 | | 48,307 |
| | Provision for credit losses | 2,681 | | 1,289 | | 1,880 | | 1,478 | | 849 |
| Net interest income after provision for credit losses | 58,112 | | 53,666 | | 47,106 | | 47,133 | | 47,458 |
| Non-interest income | | | | | | | | | |
| | Trust fees | 5,476 | | 6,053 | | 5,115 | | 5,096 | | 5,210 |
| | Service charges on deposits | 4,249 | | 3,652 | | 4,028 | | 4,170 | | 4,078 |
| | Electronic banking fees | 3,496 | | 3,325 | | 3,159 | | 3,268 | | 3,267 |
| | Net securities brokerage revenue | 1,842 | | 2,059 | | 1,389 | | 1,701 | | 2,003 |
| | Bank-owned life insurance | 989 | | 1,251 | | 1,037 | | 882 | | 1,821 |
| | Net gains on sales of mortgage loans | 407 | | 272 | | 426 | | 550 | | 475 |
| | Net securities gains | - | | 22 | | 147 | | 581 | | 165 |
| | Net gain / (loss) on other real estate owned and other assets | 152 | | 122 | | 212 | | (1,167) | | (165) |
| | Other income | 1,461 | | 1,434 | | 1,047 | | 1,573 | | 1,387 |
| | | | Total non-interest income | 18,072 | | 18,190 | | 16,560 | | 16,654 | | 18,241 |
| Non-interest expense | | | | | | | | | |
| | Salaries and wages | 19,300 | | 18,357 | | 16,707 | | 17,331 | | 16,904 |
| | Employee benefits | 6,807 | | 7,316 | | 5,229 | | 5,051 | | 5,529 |
| | Net occupancy | 3,243 | | 3,490 | | 2,857 | | 2,916 | | 2,857 |
| | Equipment | 3,017 | | 2,973 | | 3,008 | | 2,837 | | 2,914 |
| | Marketing | 1,715 | | 965 | | 1,250 | | 1,276 | | 1,713 |
| | FDIC insurance | 1,040 | | 910 | | 833 | | 786 | | 880 |
| | Amortization of intangible assets | 944 | | 566 | | 466 | | 477 | | 482 |
| | Restructuring and merger-related expense | 1,115 | | 9,733 | | 1,309 | | - | | - |
| | Other operating expenses | 9,408 | | 9,131 | | 10,313 | | 8,589 | | 9,025 |
| | | | Total non-interest expense | 46,589 | | 53,441 | | 41,972 | | 39,263 | | 40,304 |
| Income before provision for income taxes | 29,595 | | 18,415 | | 21,694 | | 24,524 | | 25,395 |
| | Provision for income taxes | 7,962 | | 4,528 | | 5,182 | | 6,358 | | 6,520 |
| Net Income | $ 21,633 | | $ 13,887 | | $ 16,512 | | $ 18,166 | | $ 18,875 |
| | | | | | | | | | | | | |
| Taxable equivalent net interest income | $ 62,975 | | $ 56,857 | | $ 50,793 | | $ 50,449 | | $ 50,157 |
| | | | | | | | | | | | | |
| Per common share data | | | | | | | | | |
| Net income per common share - basic | $ 0.56 | | $ 0.40 | | $ 0.56 | | $ 0.62 | | $ 0.65 |
| Net income per common share - diluted | $ 0.56 | | $ 0.40 | | $ 0.56 | | $ 0.62 | | $ 0.64 |
| Dividends declared | $ 0.23 | | $ 0.23 | | $ 0.22 | | $ 0.22 | | $ 0.22 |
| Book value (period end) | $ 28.42 | | $ 28.38 | | $ 26.90 | | $ 26.94 | | $ 26.59 |
| Tangible book value (period end) (1) | $ 15.72 | | $ 15.67 | | $ 16.09 | | $ 16.10 | | $ 15.75 |
| Average common shares outstanding - basic | 38,472,229 | | 34,393,137 | | 29,291,440 | | 29,280,648 | | 29,242,180 |
| Average common shares outstanding - diluted | 38,531,700 | | 34,478,335 | | 29,383,506 | | 29,360,880 | | 29,321,927 |
| Period end common shares outstanding | 38,519,170 | | 38,449,812 | | 29,298,188 | | 29,283,675 | | 29,278,925 |
| Full time equivalent employees | 1,667 | | 1,713 | | 1,448 | | 1,435 | | 1,456 |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| (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 | |
| | | | June 30, | | Mar. 31, | | Dec. 31, | | Sept. 30, | | June 30, | |
| Asset quality data | 2015 | | 2015 | | 2014 | | 2014 | | 2014 | |
| Non-performing assets: | | | | | | | | | | |
| | Troubled debt restructurings - accruing | $ 12,958 | | $ 17,330 | | $ 12,066 | | $ 12,222 | | $ 13,513 | |
| | Non-accrual loans: | | | | | | | | | | |
| | | Troubled debt restructurings | 13,140 | | 9,224 | | 5,420 | | 5,496 | | 6,281 | |
| | | Other non-accrual loans | 35,064 | | 32,150 | | 33,398 | | 31,275 | | 29,837 | |
| | | Total non-accrual loans | 48,204 | | 41,374 | | 38,818 | | 36,771 | | 36,118 | |
| | | Total non-performing loans | 61,162 | | 58,704 | | 50,884 | | 48,993 | | 49,631 | |
| | Other real estate and repossessed assets | 6,168 | | 6,226 | | 5,082 | | 4,695 | | 5,106 | |
| | | Total non-performing assets | $ 67,330 | | $ 64,930 | | $ 55,966 | | $ 53,688 | | $ 54,737 | |
| | | | | | | | | | | | | |
| Past due loans (1): | | | | | | | | | | |
| | Loans past due 30-89 days | $ 10,320 | | $ 12,003 | | $ 9,347 | | $ 10,745 | | $ 10,138 | |
| | Loans past due 90 days or more | 2,471 | | 1,031 | | 2,288 | | 3,147 | | 2,947 | |
| | | Total past due loans | $ 12,791 | | $ 13,034 | | $ 11,635 | | $ 13,892 | | $ 13,085 | |
| | | | | | | | | | | | | |
| Criticized and classified loans (2): | | | | | | | | | | |
| | Criticized loans | $ 28,280 | | $ 40,659 | | $ 34,288 | | $ 39,553 | | $ 68,707 | |
| | Classified loans | 54,645 | | 52,295 | | 46,851 | | 48,004 | | 52,760 | |
| | | Total criticized and classified loans | $ 82,925 | | $ 92,954 | | $ 81,139 | | $ 87,557 | | $ 121,467 | |
| | | | | | | | | | | | | |
| Loans past due 30-89 days / total portfolio loans | 0.21 | % | 0.25 | % | 0.23 | % | 0.27 | % | 0.26 | % |
| Loans past due 90 days or more / total portfolio loans | 0.05 | | 0.02 | | 0.06 | | 0.08 | | 0.07 | |
| Non-performing loans / total portfolio loans | 1.24 | | 1.20 | | 1.25 | | 1.22 | | 1.26 | |
| Non-performing assets/total portfolio loans, other | | | | | | | | | | |
| | real estate and repossessed assets | 1.36 | | 1.33 | | 1.37 | | 1.33 | | 1.39 | |
| Non-performing assets / total assets | 0.80 | | 0.79 | | 0.89 | | 0.86 | | 0.87 | |
| Criticized and classified loans / total portfolio loans | 1.68 | | 1.91 | | 1.99 | | 2.17 | | 3.08 | |
| | | | | | | | | | | | | |
| Allowance for loan losses | | | | | | | | | | |
| Allowance for loan losses | $ 43,419 | | $ 44,173 | | $ 44,654 | | $ 45,029 | | $ 45,741 | |
| Provision for credit losses | 2,681 | | 1,289 | | 1,880 | | 1,478 | | 849 | |
| Net loan and deposit account overdraft charge-offs | 3,108 | | 1,747 | | 2,332 | | 2,193 | | 600 | |
| | | | | | | | | | | | | |
| Annualized net loan charge-offs /average loans | 0.25 | % | 0.16 | % | 0.23 | % | 0.22 | % | 0.06 | % |
| Allowance for loan losses / total portfolio loans | 0.88 | % | 0.91 | % | 1.09 | % | 1.12 | % | 1.16 | % |
| Allowance for loan losses / non-performing loans | 0.71 | x | 0.75 | x | 0.88 | x | 0.92 | x | 0.92 | x |
| Allowance for loan losses / non-performing loans and | | | | | | | | | | |
| | loans past due | 0.59 | x | 0.62 | x | 0.71 | x | 0.72 | x | 0.73 | x |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | Quarter Ended | |
| | | | June 30, | | Mar. 31, | | Dec. 31, | | Sept. 30, | | June 30, | |
| | | | 2015 | | 2015 | | 2014 | | 2014 | | 2014 | |
| Capital ratios | | | | | | | | | | |
| Tier I leverage capital | 9.29 | % | 10.62 | % | 9.88 | % | 9.70 | % | 9.64 | % |
| Tier I risk-based capital | 13.47 | | 14.09 | | 13.76 | | 13.56 | | 13.46 | |
| Total risk-based capital | 14.30 | | 14.92 | | 14.81 | | 14.62 | | 14.56 | |
| Common equity tier 1 capital ratio (CET 1) | 11.71 | | 11.49 | | | | | | | |
| Average shareholders' equity to average assets | 13.29 | | 12.71 | | 12.73 | | 12.49 | | 12.43 | |
| Tangible equity to tangible assets (3) | 7.68 | | 7.78 | | 7.88 | | 7.91 | | 7.74 | |
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| | | | | | | | | | | | | |
| (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 |
| | | June 30, | | Mar. 31, | | Dec. 31, | | Sept. 30, | | June 30, | | June 30, |
| (unaudited, dollars in thousands, except shares and per share amounts) | 2015 | | 2015 | | 2014 | | 2014 | | 2014 | | 2015 | 2014 |
| Return on average tangible equity: | | | | | | | | | | | | |
| | Net income (annualized) | $ 86,770 | | $ 56,319 | | $ 65,510 | | $ 72,072 | | $ 75,708 | | $ 71,612 | $ 71,177 |
| | Plus: amortization of intangibles (annualized) (1) | 2,462 | | 1,491 | | 1,202 | | 1,230 | | 1,256 | | 1,979 | 1,281 |
| | Net income before amortization of intangibles (annualized) | 89,232 | | 57,810 | | 66,712 | | 73,302 | | 76,964 | | 73,591 | 72,458 |
| | | | | | | | | | | | | | |
| | Average total shareholders' equity | 1,100,302 | | 956,836 | | 801,579 | | 787,672 | | 773,052 | | 1,001,344 | 765,985 |
| | Less: average goodwill and other intangibles, net of def. tax liability | (447,709) | | (412,454) | | (317,061) | | (317,368) | | (317,679) | | (394,957) | (317,836) |
| | Average tangible equity | $ 652,593 | | $ 544,382 | | $ 484,518 | | $ 470,304 | | $ 455,373 | | $ 606,387 | $ 448,149 |
| | | | | | | | | | | | | | |
| Return on average tangible equity | 13.67% | | 10.62% | | 13.77% | | 15.59% | | 16.90% | | 12.14% | 16.17% |
| | | | | | | | | | | | | | |
| Efficiency ratio: | | | | | | | | | | | | |
| | Non-interest expense | $ 46,589 | | $ 53,441 | | $ 41,972 | | $ 39,263 | | $ 40,304 | | $ 100,047 | $ 80,398 |
| | Less: restructuring and merger-related expense | (1,115) | | (9,733) | | (1,309) | | - | | - | | (10,848) | - |
| | Non-interest expense excluding restructuring and merger-related expense | 45,474 | | 43,708 | | 40,663 | | 39,263 | | 40,304 | | 89,199 | 80,398 |
| | | | | | | | | | | | | | |
| | Net interest income on a fully taxable equivalent basis | 62,975 | | 56,857 | | 50,793 | | 50,449 | | 50,157 | | 119,841 | 99,304 |
| | Non-interest income | 18,072 | | 18,190 | | 16,560 | | 16,654 | | 18,241 | | 36,254 | 35,290 |
| | Net interest income on a fully taxable equivalent basis plus non-interest income | $ 81,047 | | $ 75,047 | | $ 67,353 | | $ 67,103 | | $ 68,398 | | $ 156,095 | $ 134,594 |
| | Efficiency Ratio | 56.11% | | 58.24% | | 60.37% | | 58.51% | | 58.93% | | 57.14% | 59.73% |
| | | | | | | | | | | | | | |
| Net Income, excluding after-tax merger-related expenses: | | | | | | | | | | | |
| | Net income | $ 21,633 | | $ 13,887 | | $ 16,512 | | $ 18,166 | | $ 18,875 | | $ 35,512 | $ 35,296 |
| | Add: After-tax merger-related expenses (1) | 725 | | 6,326 | | 851 | | - | | - | | 7,051 | - |
| Net income, excluding after-tax merger-related expenses | $ 22,358 | | $ 20,213 | | $ 17,363 | | $ 18,166 | | $ 18,875 | | $ 42,563 | $ 35,296 |
| | | | | | | | | | | | | | |
| Net Income, excluding after-tax merger-related expenses per diluted share: | | | | | | | | | | | |
| | Net income per diluted share | $ 0.56 | | $ 0.40 | | $ 0.56 | | $ 0.62 | | $ 0.64 | | $ 0.97 | $ 1.20 |
| | Add: After-tax merger-related expenses per diluted share (1) | 0.02 | | 0.19 | | 0.03 | | - | | - | | 0.20 | - |
| Net income, excluding after-tax merger-related expenses per diluted share | $ 0.58 | | $ 0.59 | | $ 0.59 | | $ 0.62 | | $ 0.64 | | $ 1.17 | $ 1.20 |
| | | | | | | | | | | | | | |
| | | Period End | | | |
| | | June 30, | | Mar. 31, | | Dec. 31, | | Sept. 30, | June 30, | | | |
| | | 2015 | | 2015 | | 2014 | | 2014 | | 2014 | | | |
| Tangible book value: | | | | | | | | | | | | |
| | Total shareholders' equity | $ 1,094,653 | | $ 1,091,384 | | $ 788,190 | | $ 788,784 | | $ 778,625 | | | |
| | Less: goodwill and other intangible assets, net of def. tax liability | (488,949) | | (488,911) | | (316,914) | | (317,217) | | (317,527) | | | |
| | Tangible equity | 605,704 | | 602,473 | | 471,276 | | 471,567 | | 461,098 | | | |
| | | | | | | | | | | | | | |
| | Common shares outstanding | 38,519,170 | | 38,449,812 | | 29,298,188 | | 29,283,675 | | 29,278,925 | | | |
| | | | | | | | | | | | | | |
| Tangible book value | $ 15.72 | | $ 15.67 | | $ 16.09 | | $ 16.10 | | $ 15.75 | | | |
| | | | | | | | | | | | | | |
| Tangible equity to tangible assets: | | | | | | | | | | | | |
| | Total shareholders' equity | $ 1,094,653 | | $ 1,091,384 | | $ 788,190 | | $ 788,784 | | $ 778,625 | | | |
| | Less: goodwill and other intangible assets, net of def. tax liability | (488,949) | | (488,911) | | (316,914) | | (317,217) | | (317,527) | | | |
| | Tangible equity | 605,704 | | 602,473 | | 471,276 | | 471,567 | | 461,098 | | | |
| | | | | | | | | | | | | | |
| | Total assets | 8,375,419 | | 8,233,279 | | 6,296,565 | | 6,278,494 | | 6,277,020 | | | |
| | Less: goodwill and other intangible assets, net of def. tax liability | (488,949) | | (488,911) | | (316,914) | | (317,217) | | (317,527) | | | |
| | Tangible assets | $ 7,886,470 | | $ 7,744,368 | | $ 5,979,651 | | $ 5,961,277 | | $ 5,959,493 | | | |
| | | | | | | | | | | | | | |
| Tangible equity to tangible assets | 7.68% | | 7.78% | | 7.88% | | 7.91% | | 7.74% | | | |
| | | | | | | | | | | | | | |
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| (1) Tax effected at 35%. | | | | | | | | | | | | |
