Exhibit 99.1 |
Forward-looking statements in this presentation relating to WesBanco’s plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The information contained herein should be read in conjunction with WesBanco’s 2010 Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”), including WesBanco’s Form 10-Q as of March 31, 2011 and June 30, 2011, which are available on 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 2010 Annual Report on Form 10-K filed with the SEC under the section, “Risk Factors” in Part 1, Item 1A. Such statements are subject to important factors that could cause actual results to differ materially from those contemplated by such statements. WesBanco does not assume any duty to update any forward-looking statements. |
Headquarters in Wheeling, West Virginia Assets: $5.4 billion Founded in 1870 32 banks/23 companies acquired in 25 years Banking operations in West Virginia, Ohio and Western Pennsylvania 112 banking offices + Pittsburgh Business Loan Office 124 ATM’s Non-bank activities include: Wealth management, securities brokerage, insurance and proprietary family of mutual funds |
Columbus Springfield Dayton Huntington Wheeling * SNL 12/31/10 Deposit Market Share Data Ranked #1-3 in deposit market share in 15 counties out of 37* Expanding along major highways to population centers (Columbus, Dayton, Cincinnati) Organized into seven markets |
($ in thousands, except diluted earnings per share)00’s except per share data) Jun 2011 Mar 2011 Dec 2010 Sep 2010 Jun 2010 Net Income $11,918 $10,240 $10,310 $9,153 $8,238 Diluted Earnings Per Share $ 0.45 $ 0.39 $ 0.39 $ 0.34 $ 0.31 Provision for Credit Losses $6,802 $8,041 $9,625 $11,778 $11,675 Return on Average Assets 0.88% 0.77% 0.76% 0.67% 0.61% Return on Average Tangible Equity 14.73% 13.29% 13.09% 11.80% 10.98% Net Interest Margin (FTE) 3.73% 3.67% 3.66% 3.61% 3.56% Efficiency Ratio 59.79% 61.63% 60.36% 61.05% 60.36% |
• Net Operating Revenue = Net Interest Income plus Non-interest Income, excluding net securities gains and gains/losses on REO. See non-GAAP measures for additional information relating to the calculation of this item. |
Summary – Capital Ratios % *See non-GAAP measures for additional information relating to the calculation of this item. |
Recent Accomplishments Increased dividends to shareholders in 1Q’11 and in 3Q’11 by 14.3% in total. Growth in tangible capital and regulatory capital ratios through growth in retained earnings. Remained profitable each quarter throughout recession. Continued growth in earnings per share in each of the past 7 quarters. Purchased five branches with $600 million in deposits using existing capital resources. Paid back $75 million in TARP without common raise. Maintained strong capital position, considered “well capitalized”. |
(MM) Growth by Acquisition: A WSBC Core Competency Focused on higher growth metro markets and enhancing market share. Five acquisitions in nine years – assets more than doubled since the beginning of 2002. A history of successful consolidations. Acquired 5 branches in Columbus, Ohio market in 2009, resulting in #9 market share. Acquired Assets: 2002 to 2011 = $3.6B ($ in billions) $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 YTD |
WesBanco is focused on targeted M & A opportunities in its market areas. Limited FDIC-assisted transactions expected, but plenty of moderately distressed banks and “tired” management teams. Management, technology/back office and capital/liquidity strength to compete for deals of interest. Current stock valuation provides for upside potential for acquired bank’s shareholders. |
$3.0B of assets under management/custody. Over 5,000 trust relationships. 4 locations in WV & OH Improving performance as asset values have grown. Product capabilities: Trust Investment management WesMark Funds Estate planning Financial planning Brokerage sales Retirement planning |
Economic Benefits of WV WV reported a surplus of revenue over expense for the latest fiscal year. State of WV has implemented legislation to reduce Business Franchise and Corporate Net Income Taxes. WV generated 8% higher revenues in 2011 and GDP rose by 4% vs. the 2.6% national average. WV reports stable home prices over the past five years. WV reports lower than national average unemployment. |
Map Source: Oil & Gas Financial Journal through Sterne Agee; data from Pennsylvania State University College of Earth and Mineral Sciences Research Study of 5/24/10. Area five time as large as Barnett Shale – primarily in WV & PA, parts of NY & OH. WVU study suggests 43k- 83k jobs created by Marcellus drilling activity by 2015. Total estimated economic activity by 2020 - $3B. WSBC in 10 out of 32 counties in WV with activity. Top 5 in deposit share in five of those counties. Over 1,000 Marcellus wells drilled to date in WV. 4,145 drilling permits applied for between 1/1/09 – 7/31/11 in WV. |
2011 Business Initiatives Actively remix the balance sheet – loans & deposits - to improve revenue, interest rate sensitivity, regulatory capital and profitability. Continuing efforts to address credit quality and impaired loan levels as economy improves. Focus on organic loan growth, with an emphasis on business banking and C&I lending. Pursue opportunities for activities related to Marcellus Shale. Continue to focus on wealth management and other fee- related opportunities. Monitor opportunities for selective acquisitions in footprint. |
Price / 2012 Estimated Earnings (x) (1) Price / 2012 Estimated Earnings (x) (1) Source: FactSet Research Systems and SNL Financial; Market data as of 8/26/2011 (1) 2012E earnings estimates per First Call; SRCE earnings estimate not available (2) Includes nationwide banks and thrifts between $2 billion and $10 billion in total assets |
Market Performance – Cycle-to-Date Market Performance – Cycle-to-Date 6/30/07 7/11/08 7/28/09 8/11/10 8/26/11 0.00% 25.00% 50.00% 75.00% 100.00% 125.00% WesBanco, Inc. (-38.41%) KBW Regional Banking Index (-54.92%) KBW Bank Index (-66.65%) S&P 500 Index (-21.72%) |
Market Performance – Since January 1, 2010 Market Performance – Since January 1, 2010 1/1/10 5/31/10 10/29/10 3/28/11 8/26/11 60.00% 80.00% 100.00% 120.00% 140.00% 160.00% 180.00% WesBanco, Inc. (47.24%) KBW Regional Banking Index (-7.62%) KBW Bank Index (-11.85%) S&P 500 Index (5.53%) |
Securities Portfolio – Quality & Liquidity Agency Agency Mortgage- Mortgage- Backed & Backed & CMOs, 43.9% CMOs, 43.9% US Govt. US Govt. Agencies Agencies 21.6% 21.6% Securities = $1.52 B ~28.1% of total assets Municipals, 32.0% Equities & Others, 2.5% Average portfolio yield of 3.72% at 6/30/11. WAL approx. 4.8 years, modified duration 3.6%. Over 55% unpledged. No significant private label RMBS, equities and corporate/ABS securities. Net unrealized AFS securities gains of $11.0 million at 6/30/11: total portfolio gain of $20.3 million. |
Portfolio comprised of $494 million of tax exempts and taxable Build America Bonds. Approximately 90% are local issuers. G.O.’s are 74% of total; 26% revenue bonds. 96% rated, with 78% rated AA (or its equivalent) or higher. Only 6.0% below A – all are investment grade. About 59% in held to maturity – longer dated maturities. Average tax-equivalent yield – 5.8%; average life 6.8 years. Average size of each issue is $644 thousand. Average holdings per issuer are $914 thousand. |
Diversified Loan Portfolio Diversified Loan Portfolio Comm. Real Estate = $1.73 B Const & Dev. 10% Total Portfolio Loans = $3.26 B Investor- owned 57% Owner- occupied 33% Comm. Real Estate, 53% Comm. & Ind., 13% Consumer, 8% HELOC, 8% Res. Real Estate, 18% |
Non-Accrual & Restructured Loans Non-Accrual & Restructured Loans |
Net Charge-Offs vs. Provision for Loan Losses Net Charge-Offs vs. Provision for Loan Losses |
• National Peer Group = Average of 94 banks nationwide with assets between $2-$10 B. • Source: SNL Financial Annualized Net Loan Charge-offs / Average Loans |
• National Peer Group = Average of 94 banks nationwide with assets between $2-$10 B. • Source: SNL Financial NPA + 90 PD Loans / Total Loans + OREO |
Conservative Exposure to Potential Problem Loan Areas Conservative Exposure to Potential Problem Loan Areas Exposure¹ ($ Millions) % of RBC² Regulatory Guideline Land, Construction & Development $257 53% 100% Investor-Owned Commercial $668 137% N/A Investor-Owned Multi-Family $214 43% N/A Total Land, C&D, and Investor-Owned $ 1,139 233% 300% 1 Total Loans Outstanding and Unfunded Commitments. 2 Total Risk-Based Capital = $488.3 million at 6/30/11 WSBC is Below Regulatory CRE Guidelines |
Net Interest Margin & Efficiency Ratio Net Interest Margin & Efficiency Ratio |
Diversified Operating Non-interest Income* Diversified Operating Non-interest Income* Noninterest income contributed 26% of 2011 YTD revenue. Non-bank offerings (trust, insurance, securities) contributed $12.4 million in YTD 2011 revenue. Trust fees are up 17.4% year over year. Approximate 17% decline in service fee income for YTD 2011, as a result of mid- 2010 implemented regulatory requirements. * Operating non-interest income excludes G/L on securities and G/L on sale of OREO property, see non-GAAP measures for additional information relating to the calculation of this. |
Interest Rate Sensitivity Interest Rate Sensitivity Immediate Change in Interest Rates % Change in Net Interest Income from Base Over One Year June 30, 2011 Dec. 31, 2010 Up 1% Rate Shock +1.2% +2.4% Up 2% Rate Shock Up 2% Rate Shock +0.6% +0.6% +1.7% +1.7% Up 2% Rate Ramp +1.5% +2.3% Down 1% Rate Shock -3.7% -2.9% |
Investor Remarks Investor Remarks • Solid 2Q:11 results on strengthening PTPP and lower credit costs: WesBanco reported 2Q:11 GAAP EPS of $0.45, a 45% increase from the $0.31 reported for 2Q:10 …which was $0.10 above our estimate and $0.07 ahead of the Street. Douglas Rainwater, Rodman & Renshaw, July 28, 2011. • "Solid upside surprise in 2Q11; raising estimates; shares likely have moderate near-term upside. 2Q11 earnings entailed the third consecutive upside surprise and likely a round of upward estimate revisions." Kenneth James, Sterne Agee, July 27, 2011. • "Reported Better-Than-Expected 2Q11 Results; Raising Rating to Outperform and Initiating $23.00 Target Price. Matthew Schultheis, Boenning & Scattergood, July 27, 2011. • "WSBC reported another quarter of earnings improvement, beating both the Street and our estimate. Catherine Mealor, Keefe, Bruyette & Woods, July 26, 2011. |
Stability, Diversity and Capital Strength Financial performance indicates well managed bank. Strong regulatory capital. Proven acquisition-oriented growth strategy. Excellent liquidity. Asset quality compares favorably with peers. Diverse earnings stream. Potential for improved stock price. |
Commercial Retail Total Loans Upper Ohio Valley $ 465 $ 381 $ 846 North Central WV 236 175 411 Parkersburg 204 84 288 Kanawha Valley 59 35 94 Western PA 199 14 213 Total East Markets $ 1,163 $ 689 $ 1,852 Central Ohio 520 138 658 Southwest Ohio 329 148 477 Southeast Ohio 154 123 277 Total West Markets $ 1,003 $ 409 $ 1,412 Total Bank $ 2,166 $ 1,098 $ 3,264 ($ in thousands) |
90 Day PD & Accruing Non- Accrual TDR Other RE Owned Upper Ohio Valley $ 1,494 $ 7,691 $ 4,200 $ 472 North Central WV 702 519 859 147 Parkersburg 956 6,099 235 188 Kanawha Valley 88 2,722 N/A 295 Western PA 105 2,538 249 275 Total East Markets $ 3,345 $ 19,569 $ 5,543 $ 1,377 Central Ohio 1,678 17,899 18,737 2,003 Southwest Ohio 1,176 21,059 11,923 1,239 Southeast Ohio 536 3,517 232 162 Total West Markets $ 3,390 $ 42,475 $ 30,892 $ 3,404 Total Bank $ 6,735 $ 62,044 $ 36,435 $ 4,781 * - Includes $0.9 Million for bank-owned hospitality property. ($ in thousands) Appendix: Credit Quality By Market ($ thousands) |
2Q’10 3Q’10 4Q’10 1Q’11 2Q’11 Total shareholder’s equity $ 604,714 $ 608,287 $ 606,863 $ 611,978 $ 623,037 Less: goodwill & other intangible assets (286,908) (286,228) (285,559) (284,941) (284,336) Tangible equity 317,806 322,059 321,304 327,037 338,701 Total assets 5,356,261 5,362,623 5,361,458 5,368,852 5,425,907 Less: goodwill & other intangible assets (286,908) (286,228) (285,559) (284,941) (284,336) Tangible assets $5,069,353 $5,076,395 $5,075,899 $5,083,911 $5,141,571 Tangible equity to tangible assets 6.27% 6.34% 6.33% 6.43% 6.59% Non-GAAP Financial Measures Tangible equity to tangible assets ($ in thousands) |
2Q’10 3Q’10 4Q’10 1Q’11 2Q’11 Net Interest income $ 41,148 $ 41,986 $ 42,326 $ 41,476 $ 43,053 Plus: Non-interest income 14,585 14,976 14,997 14,504 15,019 Less: Net securities gains and net gains/losses on other real estate owned and other assets (417) 327 (551) (528) (257) Net revenue $ 56,150 $ 56,635 $ 57,874 $ 56,508 $ 58,329 Non-GAAP Financial Measures Net Revenue ($ in thousands) |
2007 2008 2009 2010 2011 (annualized) Non-interest Income $ 52,939 $ 57,346 $ 64,589 $ 59,599 $ 59,531 Less: Net Securities gains 943 1,556 6,046 3,362 60 Less: losses on other real estate owned and other assets 1,306 (1,715) (747) (4,128) (1,646) Net operating non-interest income $ 50,690 $ 57,505 $ 59,290 $ 60,365 $ 61,117 Non-GAAP Financial Measures Operating non-interest income ($ in thousands) |
2Q’10 3Q’10 4Q’10 1Q’11 2Q’11 Net income (annualized) $ 33,043 $ 36,313 $ 40,903 $ 41,531 $ 47,805 Plus: amortization of intangibles (annualized) 1,787 1,743 1,724 1,629 1,577 Net income before amortization of intangibles (annualized) 34,830 38,056 42,627 43,159 49,382 Average total shareholders’ equity $ 604,334 $ 608,932 $ 611,497 $ 610,077 $ 619,954 Less: average goodwill & other intangibles (287,221) (286,537) (285,860) (285,219) (284,611) Average tangible equity $ 317,113 $ 322,395 $ 325,637 $ 324,858 $ 335,343 Return on average tangible equity 10.98% 11.80% 13.09% 13.29% 14.73% Non-GAAP Financial Measures Return on Average Tangible Equity ($ in thousands) |
1Q’10 2Q’10 3Q’10 4Q’10 1Q’11 2Q’11 Income before provision for income taxes $ 8,780 $ 9,491 $ 9,503 $12,187 $12,448 $15,564 Provision for credit losses 11,500 11,675 11,778 9,625 8,041 6,802 Taxable equivalent adjustment 1,612 1,535 1,488 1,507 1,608 1,640 21,892 22,701 22,769 23,319 22,097 24,006 Annualized $ 88,784 $ 91,053 $ 90,334 $ 92,516 $ 89,616 $ 96,288 Average assets $ 5,414,341 $ 5,437,010 $ 5,422,181 $ 5,394,837 $ 5,363,365 $ 5,428,747 ROAA 1.64% 1.67% 1.67% 1.71% 1.67% 1.77% Non-GAAP Financial Measures ROAA: Pre-tax, Pre-provision ($ in thousands) |
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