WHEELING, W.Va., July 23, 2014 /PRNewswire/ -- 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 six months ended June 30,
2014.
Net income for the three months ended June 30, 2014 was a record at $18.9 million, compared to $16.4 million for the first quarter of 2014,
representing an increase of 14.9%, while diluted earnings per share
were $0.64, compared to $0.56 per share for the first quarter of 2014,
representing an increase of 14.3%. As compared to the second
quarter of 2013, net income increased 10.9% and diluted earnings
per share increased by 10.3%. For the six month period ended
June 30, 2014, net income totaled
$35.3 million compared to
$33.0 million for the first half of
last year, representing an increase of 6.8%, while diluted earnings
per share totaled $1.20 as compared
to $1.13 for 2013, representing an
increase of 6.2%. The increase in net income improved the
return on average assets to 1.15% from 1.10% in the first six
months of last year. Return on assets and return on tangible
equity for WesBanco remain well above first quarter 2014 peer group
averages, the most recent available.
Mr. Clossin commented, "The second quarter was impressive and we
are very pleased with the results. Loan growth improved in
the second quarter after a challenging first quarter for much of
the economy. Earning assets increased and, when combined with
a steady reduction in the cost of funds, resulted in further
increases in net interest income. Trust fees and securities
brokerage revenue also grew at a strong rate again this quarter.
Improvement in credit quality continues, reducing charge offs
and the credit provision. Expenses continue to be well
managed as we stay disciplined and continue our focus on gaining
efficiencies from our infrastructure investments. The management at
WesBanco is a team that, while recognizing the successes of this
quarter, is prepared to further improve the organization going
forward."
Financial Condition
Total assets at June 30, 2014
increased 3.2% or $193.0 million from
June 30, 2013, primarily due to loan
growth. Portfolio loans increased $144.7 million or 3.8% over the last year and
1.5% in the second quarter of 2014 compared to the first 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
28.4% in the second quarter compared to the first quarter.
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. Deposits increased $178.6 million or 3.6% from June 30, 2013, with approximately $260 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 $150.6 million due to lower rate offerings for
maturing CDs. However, deposits decreased 1.9% in the second
quarter compared to March 31, 2014
due to reduced demand deposits and CDs. Available deposit
funding was also used to reduce higher cost borrowings by 10.6%
over the last twelve months, further reducing the cost of
funds. Total assets at June 30,
2014 increased 2.2% compared to 2013 year-end, due to growth
in both loans and securities balances.
WesBanco continues to maintain strong regulatory capital
ratios. At June 30, 2014, tier
I leverage was 9.64%, tier I risk-based capital was 13.46%, and
total risk-based capital was 14.56%, which all improved from
June 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 7.74% at June 30,
2014, up from 7.07% at June 30,
2013. Strong earnings and improved total capital have
enabled WesBanco to increase the quarterly dividend rate, currently
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 June 30, 2014 were $49.6
million or 1.26% of total loans, which represents a 2.5%
decrease from March 31, 2014 and a
20.4% decrease from $62.3 million or
1.64% of total loans at June 30,
2013. Criticized and classified loans decreased 6.0% in the
second quarter of 2014 compared to March 31,
2014 to $121.5 million, or
3.08% of total loans at June 30,
2014. This represents a decrease of 23.6% over the last
twelve months from $159.1 million or
4.18% of total loans last year.
Net charge-offs for the second quarter of 2014 were $0.6 million or 0.06% of average portfolio loans,
compared to $4.1 million or 0.43% for
the first quarter of 2014 and $2.4
million or 0.26% for the second quarter of 2013.
Year-to-date, net charge-offs were $4.7 million or 0.25% of average portfolio loans
compared to $5.5 million or 0.30% in
the same period of 2013. Second quarter 2014 net charge-offs
benefitted from higher than normal commercial recoveries on loans
charged off in prior periods. Gross charge-offs for the
second quarter of 2014 were $1.9
million or 0.20% of average portfolio loans compared to
$4.7 million or 0.50% for the prior
quarter and $3.3 million or 0.36% for
the same quarter last year.
Lower charge-offs and continued improvement in delinquent,
non-performing and classified and criticized loans resulted in the
provision for credit losses decreasing to $0.8 million for the second quarter of 2014
compared to $2.2 million for the
first quarter of 2014, and $1.0
million in the second quarter of 2013. For the first
half of 2014 the provision was $3.0
million compared to $3.1
million in the same period of 2013. The allowance for loan
losses represented 1.16% of total portfolio loans at June 30, 2014, compared to 1.17% at March 31, 2014 and 1.33% at the end of the 2013
second quarter.
Net Interest Income
Net interest income increased $2.3
million or 5.0% in the second quarter of 2014 compared to
the second quarter of 2013, due to a 2.8% increase in average
earning assets through increased average loan balances and
$0.5 million of other interest income
related to a refund of federal income taxes. Year-to-date net
interest income increased $3.5
million or 3.8% from last year. The net interest
margin improved by 8 basis points to 3.64% in the second quarter of
2014 compared to 3.56% in the same quarter of 2013, while for the
first six months the margin was 3.63% compared to 3.60% in 2013.
The interest on the tax refund contributed 3 basis points to the
margin in the second quarter and 1 basis point in the year-to-date
margin in 2014. Accretion of various purchase accounting
adjustments from a 2012 acquisition benefited the net interest
margin throughout 2013 and the first half of 2014, but at a
decreasing rate. Excluding this benefit from both years, the net
interest margin increased by 13 basis points from the second
quarter of 2013, from 3.48% to 3.61% and 10 basis points from the
first six months of 2013, from 3.49% to 3.59%. 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 six months of 2014 as a result of a 33.2%
reduction in higher-rate average FHLB and other borrowings,
primarily through maturities, and a 9.8% increase in lower-cost
demand, money market and savings account deposits, while
higher-cost CDs decreased by 9.2%. Overall average deposits
increased by 3.6% year-to-date in 2014 compared to the same period
in 2013.
Non-Interest Income and Non-Interest Expense
For the second quarter of 2014, non-interest income increased
$0.5 million or 2.9% compared to the
second quarter of 2013. The increase was due, in part, to a
$1.0 million bank-owned life
insurance death benefit in the current quarter. In addition,
trust fees increased 8.0% as assets under management continued to
increase from customer development initiatives and overall market
improvements. Total trust assets were $3.8 billion at June 30,
2014, representing an increase of 11.7% from $3.4 billion at June 30,
2013. Net securities brokerage revenues increased
22.1%, due to significant production increases from existing
markets, the 2013 deployment of an advisor team in the Pittsburgh market, 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. Service charges on deposits decreased 8.6% compared
to the second quarter of 2013, due to lower overdraft fees that are
affected by lower seasonal usage patterns, consistent increases in
deposit levels and higher average deposits per account.
Mortgage loan sale gains decreased 32.2% 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. Net security gains decreased by
$0.5 million. For the first
half of 2014, non-interest income increased 0.2% from trends
similar to the second quarter; however there was also a
$1.1 million bank-owned life
insurance death benefit in the first quarter of last year.
Non-interest expense increased $0.8
million or 2.0% for the second quarter compared to the
second quarter of 2013. Salaries and wages increased 7.2%,
due to routine annual adjustments to compensation, increased
commissions on higher brokerage revenue and incentive and
stock-related compensation granted during the quarter.
Employee benefits expense decreased 4.9%, primarily from decreased
pension expense. Other expense decreased 1.1% primarily due
to reduced communications expense. For the first half of
2014, non-interest expense increased $0.2
million or 0.2% compared to the same period in 2013.
Excluding 2013 merger-related expenses of $1.2 million incurred primarily in the first
quarter of 2013, total non-interest expense would have increased
$1.4 million or 1.7% for the first
six months. Salaries and wages increased 5.6% and employee
benefits decreased 7.6% 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 1.2% primarily
due to lower communication and other real estate owned
expenses. However, despite the overall increase in
non-interest expense, the efficiency ratio improved to 59.7% for
the year-to-date period from 60.4% in 2013.
Financial Results Conference Call
WesBanco, Inc. will host a conference call to discuss the
Company's financial results for the second quarter of 2014 on
Thursday, July 24, 2014 at 11:00 a.m.
E.D.T. Callers wishing to participate should access the call
by dialing 1-877-870-4263 or 1-412-317-0790 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=99933. 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 106 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.
Website: www.wesbanco.com
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 quarter
ended March 31, 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.
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Consolidated
Selected Financial Highlights
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Page
4
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(unaudited,
dollars in thousands, except shares and per share
amounts)
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For the Three
Months Ended
|
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For the Six
Months Ended
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STATEMENT OF
INCOME
|
June
30,
|
|
June
30,
|
Interest and
dividend income
|
2014
|
|
2013
|
|
%
Change
|
|
2014
|
|
2013
|
|
%
Change
|
|
Loans, including
fees
|
$
42,546
|
|
$
43,753
|
|
(2.76%)
|
|
$
85,291
|
|
$
88,029
|
|
(3.11%)
|
|
Interest and
dividends on securities:
|
|
|
|
|
|
|
|
|
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|
Taxable
|
7,452
|
|
7,357
|
|
1.29%
|
|
14,676
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|
14,790
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|
(0.77%)
|
|
|
Tax-exempt
|
3,435
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|
3,264
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5.24%
|
|
6,821
|
|
6,392
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|
6.71%
|
|
|
|
Total interest and
dividends on securities
|
10,887
|
|
10,621
|
|
2.50%
|
|
21,497
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|
21,182
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|
1.49%
|
|
Other interest
income
|
611
|
|
50
|
|
1122.00%
|
|
713
|
|
106
|
|
572.64%
|
Total interest and dividend income
|
54,044
|
|
54,424
|
|
(0.70%)
|
|
107,501
|
|
109,317
|
|
(1.66%)
|
Interest
expense
|
|
|
|
|
|
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|
|
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|
Interest bearing
demand deposits
|
395
|
|
365
|
|
8.22%
|
|
768
|
|
666
|
|
15.32%
|
|
Money market
deposits
|
466
|
|
338
|
|
37.87%
|
|
907
|
|
677
|
|
33.97%
|
|
Savings
deposits
|
133
|
|
127
|
|
4.72%
|
|
263
|
|
268
|
|
(1.87%)
|
|
Certificates of
deposit
|
3,422
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|
5,881
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|
(41.81%)
|
|
7,052
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|
12,029
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|
(41.38%)
|
|
|
|
Total interest
expense on deposits
|
4,416
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|
6,711
|
|
(34.20%)
|
|
8,990
|
|
13,640
|
|
(34.09%)
|
|
Federal Home Loan
Bank borrowings
|
175
|
|
289
|
|
(39.45%)
|
|
386
|
|
609
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|
(36.62%)
|
|
Other short-term
borrowings
|
350
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|
627
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|
(44.18%)
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|
907
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|
1,249
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(27.38%)
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Junior subordinated
debt owed to unconsolidated subsidiary trusts
|
796
|
|
808
|
|
(1.49%)
|
|
1,587
|
|
1,701
|
|
(6.70%)
|
|
|
|
Total interest
expense
|
5,737
|
|
8,435
|
|
(31.99%)
|
|
11,870
|
|
17,199
|
|
(30.98%)
|
Net interest
income
|
48,307
|
|
45,989
|
|
5.04%
|
|
95,631
|
|
92,118
|
|
3.81%
|
|
Provision for credit
losses
|
849
|
|
1,021
|
|
(16.85%)
|
|
3,048
|
|
3,123
|
|
(2.40%)
|
Net interest income
after provision for credit losses
|
47,458
|
|
44,968
|
|
5.54%
|
|
92,583
|
|
88,995
|
|
4.03%
|
Non-interest
income
|
|
|
|
|
|
|
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|
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Trust fees
|
5,210
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|
4,823
|
|
8.02%
|
|
10,858
|
|
9,840
|
|
10.35%
|
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Service charges on
deposits
|
4,078
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|
4,462
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(8.61%)
|
|
7,937
|
|
8,659
|
|
(8.34%)
|
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Electronic banking
fees
|
3,267
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|
3,195
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|
2.25%
|
|
6,281
|
|
6,062
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3.61%
|
|
Net securities
brokerage revenue
|
2,003
|
|
1,641
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22.06%
|
|
3,832
|
|
3,138
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|
22.12%
|
|
Bank-owned life
insurance
|
1,821
|
|
880
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106.93%
|
|
2,695
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|
2,829
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(4.74%)
|
|
Net gains on sales of
mortgage loans
|
475
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|
701
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|
(32.24%)
|
|
628
|
|
1,413
|
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(55.56%)
|
|
Net securities
gains
|
165
|
|
686
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|
(75.95%)
|
|
175
|
|
702
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|
(75.07%)
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Net (loss) / gain on
other real estate owned and other assets
|
(165)
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|
101
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(263.37%)
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(52)
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55
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(194.55%)
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Other
income
|
1,387
|
|
1,235
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12.31%
|
|
2,936
|
|
2,522
|
|
16.42%
|
|
|
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Total non-interest
income
|
18,241
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|
17,724
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2.92%
|
|
35,290
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|
35,220
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0.20%
|
Non-interest
expense
|
|
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|
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|
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|
Salaries and
wages
|
16,904
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|
15,772
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7.18%
|
|
33,370
|
|
31,599
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5.60%
|
|
Employee
benefits
|
5,529
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|
5,813
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(4.89%)
|
|
11,238
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|
12,158
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(7.57%)
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|
Net
occupancy
|
2,857
|
|
2,830
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0.95%
|
|
6,348
|
|
6,022
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|
5.41%
|
|
Equipment
|
2,914
|
|
2,802
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4.00%
|
|
5,698
|
|
5,209
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|
9.39%
|
|
Marketing
|
1,713
|
|
1,624
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|
5.48%
|
|
2,716
|
|
2,429
|
|
11.82%
|
|
FDIC
insurance
|
880
|
|
919
|
|
(4.24%)
|
|
1,757
|
|
1,890
|
|
(7.04%)
|
|
Amortization of
intangible assets
|
482
|
|
561
|
|
(14.08%)
|
|
977
|
|
1,186
|
|
(17.62%)
|
|
Restructuring and
merger-related expense
|
-
|
|
51
|
|
(100.00%)
|
|
-
|
|
1,229
|
|
(100.00%)
|
|
Other operating
expenses
|
9,025
|
|
9,127
|
|
(1.12%)
|
|
18,294
|
|
18,524
|
|
(1.24%)
|
|
|
|
Total non-interest
expense
|
40,304
|
|
39,499
|
|
2.04%
|
|
80,398
|
|
80,246
|
|
0.19%
|
Income before
provision for income taxes
|
25,395
|
|
23,193
|
|
9.49%
|
|
47,475
|
|
43,969
|
|
7.97%
|
|
Provision for income
taxes
|
6,520
|
|
6,176
|
|
5.57%
|
|
12,179
|
|
10,932
|
|
11.41%
|
Net
Income
|
$
18,875
|
|
$
17,017
|
|
10.92%
|
|
$
35,296
|
|
$
33,037
|
|
6.84%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable equivalent
net interest income
|
$
50,157
|
|
$
47,747
|
|
5.05%
|
|
$
99,304
|
|
$
95,560
|
|
3.92%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per common share
data
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common
share - basic
|
$
0.65
|
|
$
0.58
|
|
12.07%
|
|
$
1.21
|
|
$
1.13
|
|
7.08%
|
Net income per common
share - diluted
|
$
0.64
|
|
$
0.58
|
|
10.34%
|
|
$
1.20
|
|
$
1.13
|
|
6.19%
|
Dividends
declared
|
$
0.22
|
|
$
0.19
|
|
15.79%
|
|
$
0.44
|
|
$
0.38
|
|
15.79%
|
Book value (period
end)
|
|
|
|
|
|
|
$
26.59
|
|
$
24.80
|
|
7.22%
|
Tangible book value
(period end) (1)
|
|
|
|
|
|
|
$
15.75
|
|
$
13.91
|
|
13.23%
|
Average common shares
outstanding - basic
|
29,242,180
|
|
29,245,201
|
|
(0.01%)
|
|
29,212,347
|
|
29,228,355
|
|
(0.05%)
|
Average common shares
outstanding - diluted
|
29,321,927
|
|
29,308,806
|
|
0.04%
|
|
29,293,424
|
|
29,288,018
|
|
0.02%
|
Period end common
shares outstanding
|
29,278,925
|
|
29,282,412
|
|
(0.01%)
|
|
29,278,925
|
|
29,282,412
|
|
(0.01%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See non-GAAP
financial measures for additional information relating to the
calculation of this item.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WESBANCO,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
Page
5
|
Consolidated
Selected Financial Highlights
|
|
|
|
|
|
|
|
|
(unaudited,
dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected
ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six
Months Ended
|
|
|
|
|
|
|
|
June
30,
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
%
Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
|
|
|
1.15
|
%
|
1.10
|
%
|
4.55
|
%
|
|
|
|
|
|
Return on average
equity
|
|
|
|
|
9.29
|
|
9.16
|
|
1.42
|
|
|
|
|
|
|
Return on average
tangible equity (1)
|
|
|
|
16.17
|
|
16.72
|
|
(3.29)
|
|
|
|
|
|
|
Yield on earning
assets (2)
|
|
|
|
|
4.07
|
|
4.25
|
|
(4.24)
|
|
|
|
|
|
|
Cost of interest
bearing liabilities
|
|
|
|
0.54
|
|
0.79
|
|
(31.65)
|
|
|
|
|
|
|
Net interest spread
(2)
|
|
|
|
|
3.53
|
|
3.46
|
|
2.02
|
|
|
|
|
|
|
Net interest margin
(2)
|
|
|
|
|
3.63
|
|
3.60
|
|
0.83
|
|
|
|
|
|
|
Efficiency (1)
(2)
|
|
|
|
|
|
59.73
|
|
60.42
|
|
(1.14)
|
|
|
|
|
|
|
Average loans to
average deposits
|
|
|
|
75.46
|
|
74.57
|
|
1.19
|
|
|
|
|
|
|
Annualized net loan
charge-offs/average loans
|
|
|
|
0.25
|
|
0.30
|
|
(16.67)
|
|
|
|
|
|
|
Effective income tax
rate
|
|
|
|
|
25.65
|
|
24.86
|
|
3.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter
Ended
|
|
|
|
|
|
|
|
|
June
30,
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Sept.
30,
|
|
June
30,
|
|
|
|
|
|
|
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
|
|
|
|
1.22
|
%
|
1.08
|
%
|
0.99
|
%
|
1.01
|
%
|
1.12
|
%
|
|
Return on average
equity
|
|
|
|
|
9.79
|
|
8.78
|
|
8.17
|
|
8.40
|
|
9.33
|
|
|
Return on average
tangible equity (1)
|
|
|
|
16.90
|
|
15.40
|
|
14.60
|
|
15.20
|
|
16.88
|
|
|
Yield on earning
assets (2)
|
|
|
|
|
4.06
|
|
4.08
|
|
4.09
|
|
4.13
|
|
4.20
|
|
|
Cost of interest
bearing liabilities
|
|
|
|
0.52
|
|
0.56
|
|
0.63
|
|
0.73
|
|
0.77
|
|
|
Net interest spread
(2)
|
|
|
|
|
3.54
|
|
3.52
|
|
3.46
|
|
3.40
|
|
3.43
|
|
|
Net interest margin
(2)
|
|
|
|
|
3.64
|
|
3.63
|
|
3.58
|
|
3.52
|
|
3.56
|
|
|
Efficiency (1)
(2)
|
|
|
|
|
|
58.93
|
|
60.57
|
|
61.66
|
|
61.45
|
|
60.25
|
|
|
Average loans to
average deposits
|
|
|
|
75.40
|
|
75.52
|
|
75.79
|
|
76.16
|
|
75.27
|
|
|
Annualized net loan
charge-offs/average loans
|
|
|
|
0.06
|
|
0.43
|
|
0.30
|
|
0.60
|
|
0.26
|
|
|
Effective income tax
rate
|
|
|
|
|
25.67
|
|
25.63
|
|
24.37
|
|
23.92
|
|
26.63
|
|
|
Trust assets, market
value at period end
|
|
|
|
$ 3,844,116
|
|
$
3,752,142
|
|
$
3,688,734
|
|
$
3,501,873
|
|
$
3,440,666
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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,
|
|
|
|
December
31,
|
December 31,
2013
|
|
Assets
|
|
|
2014
|
|
2013
|
|
%
Change
|
|
2013
|
to June 30,
2014
|
|
Cash and due from
banks
|
|
$
81,790
|
|
$
69,645
|
|
17.44
|
%
|
$
80,001
|
2.24
|
%
|
Due from banks -
interest bearing
|
|
12,698
|
|
8,425
|
|
50.72
|
|
15,550
|
(18.34)
|
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale,
at fair value
|
|
1,006,079
|
|
971,178
|
|
3.59
|
|
934,386
|
7.67
|
|
|
Held-to-maturity
(fair values of $628,540; $615,204 and $596,308,
respectively)
|
|
607,695
|
|
608,761
|
|
(0.18)
|
|
598,520
|
1.53
|
|
|
|
Total
securities
|
|
1,613,774
|
|
1,579,939
|
|
2.14
|
|
1,532,906
|
5.28
|
|
Loans held for
sale
|
|
10,641
|
|
14,517
|
|
(26.70)
|
|
5,855
|
81.74
|
|
Portfolio
loans:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real
estate
|
|
1,940,872
|
|
1,881,083
|
|
3.18
|
|
1,912,919
|
1.46
|
|
|
Commercial and
industrial
|
|
578,665
|
|
542,071
|
|
6.75
|
|
556,249
|
4.03
|
|
|
Residential real
estate
|
|
898,357
|
|
831,362
|
|
8.06
|
|
890,804
|
0.85
|
|
|
Home
equity
|
|
295,127
|
|
280,368
|
|
5.26
|
|
284,687
|
3.67
|
|
|
Consumer
|
|
233,097
|
|
266,498
|
|
(12.53)
|
|
250,258
|
(6.86)
|
|
Total portfolio
loans, net of unearned income
|
|
3,946,118
|
|
3,801,382
|
|
3.81
|
|
3,894,917
|
1.31
|
|
Allowance for loan
losses
|
|
(45,741)
|
|
(50,381)
|
|
9.21
|
|
(47,368)
|
3.43
|
|
|
|
Net portfolio
loans
|
|
3,900,377
|
|
3,751,001
|
|
3.98
|
|
3,847,549
|
1.37
|
|
Premises and
equipment, net
|
|
92,106
|
|
91,894
|
|
0.23
|
|
93,157
|
(1.13)
|
|
Accrued interest
receivable
|
|
19,087
|
|
19,248
|
|
(0.84)
|
|
18,960
|
0.67
|
|
Goodwill and other
intangible assets, net
|
|
320,449
|
|
322,478
|
|
(0.63)
|
|
321,426
|
(0.30)
|
|
Bank-owned life
insurance
|
|
121,878
|
|
119,546
|
|
1.95
|
|
121,390
|
0.40
|
|
Other
assets
|
|
104,220
|
|
107,318
|
|
(2.89)
|
|
107,979
|
(3.48)
|
|
Total
Assets
|
|
$ 6,277,020
|
|
$ 6,084,011
|
|
3.17
|
%
|
$
6,144,773
|
2.15
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing
demand
|
|
$ 1,021,414
|
|
$
901,559
|
|
13.29
|
%
|
$
960,814
|
6.31
|
%
|
|
Interest bearing
demand
|
|
871,487
|
|
840,263
|
|
3.72
|
|
857,761
|
1.60
|
|
|
Money
market
|
|
969,518
|
|
845,294
|
|
14.70
|
|
942,768
|
2.84
|
|
|
Savings
deposits
|
|
829,155
|
|
775,248
|
|
6.95
|
|
789,709
|
5.00
|
|
|
Certificates of
deposit
|
|
1,425,829
|
|
1,576,391
|
|
(9.55)
|
|
1,511,478
|
(5.67)
|
|
|
|
Total
deposits
|
|
5,117,403
|
|
4,938,755
|
|
3.62
|
|
5,062,530
|
1.08
|
|
Federal Home Loan
Bank borrowings
|
|
138,596
|
|
60,344
|
|
129.68
|
|
39,508
|
250.80
|
|
Other short-term
borrowings
|
|
94,745
|
|
200,538
|
|
(52.75)
|
|
150,536
|
(37.06)
|
|
Junior subordinated
debt owed to unconsolidated subsidiary trusts
|
|
106,156
|
|
106,118
|
|
0.04
|
|
106,137
|
0.02
|
|
|
|
Total
borrowings
|
|
339,497
|
|
367,000
|
|
(7.49)
|
|
296,181
|
14.62
|
|
Accrued interest
payable
|
|
2,306
|
|
3,516
|
|
(34.41)
|
|
2,354
|
(2.04)
|
|
Other
liabilities
|
|
39,189
|
|
48,508
|
|
(19.21)
|
|
37,113
|
5.59
|
|
Total
Liabilities
|
|
5,498,395
|
|
5,357,779
|
|
2.62
|
|
5,398,178
|
1.86
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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;
29,282,412 shares and 29,367,511 shares issued,
respectively;
|
|
|
|
|
|
|
|
|
|
|
|
29,278,925 shares;
29,282,412 shares and 29,175,236 shares outstanding,
respectively
|
|
61,182
|
|
61,005
|
|
0.29
|
|
61,182
|
-
|
|
Capital
surplus
|
|
244,029
|
|
242,640
|
|
0.57
|
|
244,974
|
(0.39)
|
|
Retained
earnings
|
|
482,786
|
|
441,168
|
|
9.43
|
|
460,351
|
4.87
|
|
Treasury stock
(88,586; 0 and 192,275 shares - at cost,
|
|
|
|
|
|
|
|
|
|
|
|
respectively)
|
|
(2,748)
|
|
-
|
|
(100.00)
|
|
(5,969)
|
53.96
|
|
Accumulated other
comprehensive loss
|
|
(5,393)
|
|
(17,329)
|
|
68.88
|
|
(12,734)
|
57.65
|
|
Deferred benefits for
directors
|
|
(1,231)
|
|
(1,252)
|
|
1.68
|
|
(1,209)
|
(1.82)
|
|
Total
Shareholders' Equity
|
|
778,625
|
|
726,232
|
|
7.21
|
|
746,595
|
4.29
|
|
Total Liabilities
and Shareholders' Equity
|
|
$ 6,277,020
|
|
$ 6,084,011
|
|
3.17
|
%
|
$
6,144,773
|
2.15
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WESBANCO,
INC.
|
|
|
|
|
|
Consolidated
Selected Financial Highlights
|
|
|
|
|
Page 7
|
(unaudited,
dollars in thousands, except shares)
|
|
|
|
|
|
Balance
sheets
|
|
June
30,
|
|
March
31,
|
|
Assets
|
|
|
|
2014
|
|
2014
|
%
Change
|
Cash and due from
banks
|
|
$
81,790
|
|
$
143,315
|
(42.93%)
|
Due from banks -
interest bearing
|
|
12,698
|
|
31,881
|
(60.17%)
|
Securities:
|
|
|
|
|
|
|
|
Available-for-sale,
at fair value
|
|
1,006,079
|
|
959,775
|
4.82%
|
|
Held-to-maturity
(fair values of $628,540 and 607,886, respectively)
|
|
607,695
|
|
597,624
|
1.69%
|
|
|
Total
securities
|
|
1,613,774
|
|
1,557,399
|
3.62%
|
Loans held for
sale
|
|
10,641
|
|
6,300
|
68.90%
|
Portfolio
Loans:
|
|
|
|
|
|
|
Commercial real
estate
|
|
1,940,872
|
|
1,915,578
|
1.32%
|
|
Commercial and
industrial
|
|
578,665
|
|
560,511
|
3.24%
|
|
Residential real
estate
|
|
898,357
|
|
888,666
|
1.09%
|
|
Home
equity
|
|
295,127
|
|
284,879
|
3.60%
|
|
Consumer
|
|
233,097
|
|
237,468
|
(1.84%)
|
Total portfolio
loans, net of unearned income
|
|
3,946,118
|
|
3,887,102
|
1.52%
|
Allowance for loan
losses
|
|
(45,741)
|
|
(45,483)
|
0.57%
|
|
|
Net portfolio
loans
|
|
3,900,377
|
|
3,841,619
|
1.53%
|
Premises and
equipment, net
|
|
92,106
|
|
92,814
|
(0.76%)
|
Accrued interest
receivable
|
|
19,087
|
|
20,149
|
(5.27%)
|
Goodwill and other
intangible assets, net
|
|
320,449
|
|
320,931
|
(0.15%)
|
Bank-owned life
insurance
|
|
121,878
|
|
122,265
|
(0.32%)
|
Other
assets
|
|
|
104,220
|
|
100,904
|
3.29%
|
Total
Assets
|
|
$ 6,277,020
|
|
$ 6,237,577
|
0.63%
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
Non-interest bearing
demand
|
|
$ 1,021,414
|
|
$ 1,022,119
|
(0.07%)
|
|
Interest bearing
demand
|
|
871,487
|
|
918,629
|
(5.13%)
|
|
Money
market
|
|
969,518
|
|
980,890
|
(1.16%)
|
|
Savings
deposits
|
|
829,155
|
|
824,276
|
0.59%
|
|
Certificates of
deposit
|
|
1,425,829
|
|
1,469,804
|
(2.99%)
|
|
|
Total
deposits
|
|
5,117,403
|
|
5,215,718
|
(1.88%)
|
Federal Home Loan
Bank borrowings
|
|
138,596
|
|
23,282
|
495.29%
|
Other short-term
borrowings
|
|
94,745
|
|
92,737
|
2.17%
|
Junior subordinated
debt owed to unconsolidated subsidiary trusts
|
|
106,156
|
|
106,146
|
0.01%
|
|
|
Total
borrowings
|
|
339,497
|
|
222,165
|
52.81%
|
Accrued interest
payable
|
|
2,306
|
|
2,250
|
2.49%
|
Other
liabilities
|
|
39,189
|
|
36,327
|
7.88%
|
Total
liabilities
|
|
5,498,395
|
|
5,476,460
|
0.40%
|
|
|
|
|
|
|
|
|
|
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;
|
|
|
|
|
|
|
29,278,925 and
29,212,110 shares outstanding, respectively
|
|
61,182
|
|
61,182
|
0.00%
|
Capital
surplus
|
|
244,029
|
|
245,085
|
(0.43%)
|
Retained
earnings
|
|
482,786
|
|
470,352
|
2.64%
|
Treasury stock (
88,586 and 155,401 shares - at cost)
|
|
(2,748)
|
|
(4,822)
|
43.01%
|
Accumulated other
comprehensive income (loss)
|
|
(5,393)
|
|
(9,461)
|
43.00%
|
Deferred benefits for
directors
|
|
(1,231)
|
|
(1,219)
|
(0.98%)
|
Total Shareholders'
Equity
|
|
778,625
|
|
761,117
|
2.30%
|
Total Liabilities
and Shareholders' Equity
|
|
$ 6,277,020
|
|
$ 6,237,577
|
0.63%
|
|
|
|
|
|
|
|
|
|
WESBANCO,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Selected Financial Highlights
|
|
|
|
|
|
|
|
|
|
Page 8
|
(unaudited,
dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Average balance
sheet and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net interest
margin analysis
|
|
|
|
Three Months Ended
June 30,
|
|
|
For the Six Months
Ended June 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
|
|
|
$
24,134
|
0.33%
|
|
$
22,520
|
0.41%
|
|
$
37,567
|
0.22%
|
|
$
44,450
|
0.22%
|
Loans, net of
unearned income (1)
|
|
|
3,898,740
|
4.38%
|
|
3,747,533
|
4.68%
|
|
3,886,334
|
4.43%
|
|
3,706,310
|
4.79%
|
Securities:
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
|
|
|
1,176,963
|
2.53%
|
|
1,201,552
|
2.45%
|
|
1,159,072
|
2.53%
|
|
1,200,634
|
2.46%
|
Tax-exempt (3)
|
|
|
|
|
406,718
|
5.20%
|
|
381,416
|
5.27%
|
|
403,275
|
5.20%
|
|
370,033
|
5.32%
|
Total
securities
|
|
|
|
|
1,583,681
|
3.22%
|
|
1,582,968
|
3.13%
|
|
1,562,347
|
3.22%
|
|
1,570,667
|
3.14%
|
Other earning assets
(4)
|
|
|
|
10,853
|
21.82%
|
|
15,197
|
0.71%
|
|
11,209
|
11.97%
|
|
17,855
|
0.66%
|
Total earning assets (3)
|
|
|
5,517,408
|
4.06%
|
|
5,368,218
|
4.20%
|
|
5,497,457
|
4.07%
|
|
5,339,282
|
4.25%
|
Other
assets
|
|
|
|
|
702,230
|
|
|
704,179
|
|
|
705,703
|
|
|
729,240
|
|
Total
Assets
|
|
|
|
|
$ 6,219,638
|
|
|
$ 6,072,397
|
|
|
$ 6,203,160
|
|
|
$ 6,068,522
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
demand deposits
|
|
|
$
905,080
|
0.18%
|
|
$
861,676
|
0.17%
|
|
$
896,347
|
0.17%
|
|
$
854,127
|
0.16%
|
Money market
accounts
|
|
|
|
974,731
|
0.19%
|
|
848,635
|
0.16%
|
|
960,153
|
0.19%
|
|
847,201
|
0.16%
|
Savings
deposits
|
|
|
|
|
824,641
|
0.06%
|
|
775,605
|
0.07%
|
|
816,720
|
0.06%
|
|
763,087
|
0.07%
|
Certificates of
deposit
|
|
|
|
1,444,224
|
0.95%
|
|
1,602,726
|
1.47%
|
|
1,474,247
|
0.96%
|
|
1,623,775
|
1.49%
|
Total interest bearing deposits
|
|
|
4,148,676
|
0.43%
|
|
4,088,642
|
0.66%
|
|
4,147,467
|
0.44%
|
|
4,088,190
|
0.67%
|
Federal Home Loan
Bank borrowings
|
|
|
24,926
|
2.82%
|
|
60,559
|
1.91%
|
|
29,949
|
2.60%
|
|
67,958
|
1.81%
|
Other
borrowings
|
|
|
|
|
104,109
|
1.35%
|
|
142,724
|
1.76%
|
|
109,687
|
1.67%
|
|
141,195
|
1.78%
|
Junior subordinated
debt
|
|
|
|
106,151
|
3.01%
|
|
106,114
|
3.05%
|
|
106,146
|
3.02%
|
|
109,228
|
3.14%
|
Total interest
bearing liabilities
|
|
|
4,383,862
|
0.52%
|
|
4,398,039
|
0.77%
|
|
4,393,249
|
0.54%
|
|
4,406,571
|
0.79%
|
Non-interest bearing
demand deposits
|
|
|
1,022,331
|
|
|
890,295
|
|
|
1,002,822
|
|
|
882,231
|
|
Other
liabilities
|
|
|
|
|
40,393
|
|
|
52,128
|
|
|
41,104
|
|
|
52,620
|
|
Shareholders'
equity
|
|
|
|
|
773,052
|
|
|
731,935
|
|
|
765,985
|
|
|
727,100
|
|
Total Liabilities
and Shareholders' Equity
|
|
|
$ 6,219,638
|
|
|
$ 6,072,397
|
|
|
$ 6,203,160
|
|
|
$ 6,068,522
|
|
Taxable equivalent
net interest spread
|
|
|
|
3.54%
|
|
|
3.43%
|
|
|
3.53%
|
|
|
3.46%
|
Taxable equivalent
net interest margin
|
|
|
|
3.64%
|
|
|
3.56%
|
|
|
3.63%
|
|
|
3.60%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 June 30, 2014 and 2013, respectively, and $1.7
million
|
|
and $2.0 million for the
six months ended June 30, 2014 and 2013,
respectively. Additionally, loan accretion
included in interest income on loans acquired
|
|
from a 2012 acquisition
was $0.3 and $0.6 million for the three months ended June 30, 2014
and 2013, respectively, and $0.7 million and $1.9 million for the
six
|
|
months ended June 30,
2014 and 2013, respectively, while accretion on interest bearing
liabilities acquired from a 2012 acquisition was $0.2 and $0.5
million
|
|
for the three months
ended June 30, 2014 and 2013, respectively, and $0.4 million and
$1.0 million for the six months ended June 30, 2014 and
2013.
|
|
|
(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
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
2013
|
|
Loans, including
fees
|
$
42,546
|
|
$
42,746
|
|
$
43,617
|
|
$
43,678
|
|
$
43,753
|
|
Interest and
dividends on securities:
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
7,452
|
|
7,225
|
|
7,178
|
|
7,226
|
|
7,357
|
|
|
Tax-exempt
|
3,435
|
|
3,385
|
|
3,380
|
|
3,355
|
|
3,264
|
|
|
|
Total interest and
dividends on securities
|
10,887
|
|
10,610
|
|
10,558
|
|
10,581
|
|
10,621
|
|
Other interest
income
|
611
|
|
101
|
|
82
|
|
58
|
|
50
|
Total interest and dividend income
|
54,044
|
|
53,457
|
|
54,257
|
|
54,317
|
|
54,424
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
Interest bearing
demand deposits
|
395
|
|
374
|
|
380
|
|
369
|
|
365
|
|
Money market
deposits
|
466
|
|
440
|
|
440
|
|
345
|
|
338
|
|
Savings
deposits
|
133
|
|
130
|
|
130
|
|
128
|
|
127
|
|
Certificates of
deposit
|
3,422
|
|
3,630
|
|
4,383
|
|
5,597
|
|
5,881
|
|
|
|
Total interest
expense on deposits
|
4,416
|
|
4,574
|
|
5,333
|
|
6,439
|
|
6,711
|
|
Federal Home Loan
Bank borrowings
|
175
|
|
211
|
|
251
|
|
291
|
|
289
|
|
Other short-term
borrowings
|
350
|
|
557
|
|
625
|
|
651
|
|
627
|
|
Junior subordinated
debt owed to unconsolidated subsidiary trusts
|
796
|
|
790
|
|
810
|
|
805
|
|
808
|
|
|
|
Total interest
expense
|
5,737
|
|
6,132
|
|
7,019
|
|
8,186
|
|
8,435
|
Net interest
income
|
48,307
|
|
47,325
|
|
47,238
|
|
46,131
|
|
45,989
|
|
Provision for credit
losses
|
849
|
|
2,199
|
|
3,144
|
|
2,819
|
|
1,021
|
Net interest income
after provision for credit losses
|
47,458
|
|
45,126
|
|
44,094
|
|
43,312
|
|
44,968
|
Non-interest
income
|
|
|
|
|
|
|
|
|
|
|
Trust fees
|
5,210
|
|
5,648
|
|
4,883
|
|
4,854
|
|
4,823
|
|
Service charges on
deposits
|
4,078
|
|
3,860
|
|
4,616
|
|
4,650
|
|
4,462
|
|
Electronic banking
fees
|
3,267
|
|
3,013
|
|
3,012
|
|
3,124
|
|
3,195
|
|
Net securities
brokerage revenue
|
2,003
|
|
1,829
|
|
1,604
|
|
1,506
|
|
1,641
|
|
Bank-owned life
insurance
|
1,821
|
|
875
|
|
925
|
|
911
|
|
880
|
|
Net gains on sales of
mortgage loans
|
475
|
|
154
|
|
456
|
|
745
|
|
701
|
|
Net securities gains
/ (losses)
|
165
|
|
10
|
|
(3)
|
|
(15)
|
|
686
|
|
Net (loss) / gain on
other real estate owned and other assets
|
(165)
|
|
113
|
|
(144)
|
|
8
|
|
101
|
|
Other
income
|
1,387
|
|
1,547
|
|
1,601
|
|
1,333
|
|
1,235
|
|
|
|
Total non-interest
income
|
18,241
|
|
17,049
|
|
16,950
|
|
17,116
|
|
17,724
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense
|
|
|
|
|
|
|
|
|
|
|
Salaries and
wages
|
16,904
|
|
16,467
|
|
17,352
|
|
16,480
|
|
15,772
|
|
Employee
benefits
|
5,529
|
|
5,708
|
|
5,774
|
|
5,323
|
|
5,813
|
|
Net
occupancy
|
2,857
|
|
3,491
|
|
2,866
|
|
2,921
|
|
2,830
|
|
Equipment
|
2,914
|
|
2,783
|
|
2,768
|
|
2,692
|
|
2,802
|
|
Marketing
|
1,713
|
|
1,003
|
|
1,159
|
|
1,585
|
|
1,624
|
|
FDIC
insurance
|
880
|
|
877
|
|
919
|
|
916
|
|
919
|
|
Amortization of
intangible assets
|
482
|
|
495
|
|
546
|
|
556
|
|
561
|
|
Restructuring and
merger-related expense
|
-
|
|
-
|
|
45
|
|
36
|
|
51
|
|
Other operating
expenses
|
9,025
|
|
9,271
|
|
9,314
|
|
9,500
|
|
9,127
|
|
|
|
Total non-interest
expense
|
40,304
|
|
40,095
|
|
40,743
|
|
40,009
|
|
39,499
|
Income before
provision for income taxes
|
25,395
|
|
22,080
|
|
20,301
|
|
20,419
|
|
23,193
|
|
Provision for income
taxes
|
6,520
|
|
5,659
|
|
4,948
|
|
4,884
|
|
6,176
|
Net
Income
|
$
18,875
|
|
$
16,421
|
|
$
15,353
|
|
$
15,535
|
|
$
17,017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable equivalent
net interest income
|
$
50,157
|
|
$
49,148
|
|
$
49,058
|
|
$
47,938
|
|
$
47,747
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per common share
data
|
|
|
|
|
|
|
|
|
|
Net income per common
share - basic
|
$
0.65
|
|
$
0.56
|
|
$
0.52
|
|
$
0.53
|
|
$
0.58
|
Net income per common
share - diluted
|
$
0.64
|
|
$
0.56
|
|
$
0.52
|
|
$
0.53
|
|
$
0.58
|
Dividends
declared
|
$
0.22
|
|
$
0.22
|
|
$
0.20
|
|
$
0.20
|
|
$
0.19
|
Book value (period
end)
|
$
26.59
|
|
$
26.05
|
|
$
25.59
|
|
$
25.10
|
|
$
24.80
|
Tangible book value
(period end) (1)
|
$
15.75
|
|
$
15.17
|
|
$
14.68
|
|
$
14.25
|
|
$
13.91
|
Average common shares
outstanding - basic
|
29,242,180
|
|
29,182,183
|
|
29,300,463
|
|
29,325,128
|
|
29,245,201
|
Average common shares
outstanding - diluted
|
29,321,927
|
|
29,262,680
|
|
29,387,485
|
|
29,412,458
|
|
29,308,806
|
Period end common
shares outstanding
|
29,278,925
|
|
29,212,110
|
|
29,175,236
|
|
29,350,061
|
|
29,282,412
|
Full time equivalent
employees
|
1,456
|
|
1,442
|
|
1,469
|
|
1,462
|
|
1,478
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
2013
|
|
Non-performing
assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Troubled debt
restructurings - accruing
|
|
$
13,513
|
|
$
14,535
|
|
$
14,861
|
|
$
15,480
|
|
$
19,269
|
|
|
Non-accrual
loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Troubled debt
restructurings
|
|
6,281
|
|
7,406
|
|
9,324
|
|
12,920
|
|
15,655
|
|
|
|
Other non-accrual
loans
|
|
29,837
|
|
28,967
|
|
27,309
|
|
25,240
|
|
27,414
|
|
|
|
Total non-accrual loans
|
|
36,118
|
|
36,373
|
|
36,633
|
|
38,160
|
|
43,069
|
|
|
|
Total non-performing loans
|
|
49,631
|
|
50,908
|
|
51,494
|
|
53,640
|
|
62,338
|
|
|
Other real estate and
repossessed assets
|
|
5,106
|
|
5,382
|
|
4,860
|
|
5,184
|
|
5,007
|
|
|
|
Total non-performing
assets
|
|
$
54,737
|
|
$
56,290
|
|
$
56,354
|
|
$
58,824
|
|
$
67,345
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Past due loans
(1):
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans past due 30-89
days
|
|
$
10,138
|
|
$
14,650
|
|
$
14,831
|
|
$
15,611
|
|
$
15,792
|
|
|
Loans past due 90
days or more
|
|
2,947
|
|
1,833
|
|
2,591
|
|
3,043
|
|
3,594
|
|
|
|
Total past due
loans
|
|
$
13,085
|
|
$
16,483
|
|
$
17,422
|
|
$
18,654
|
|
$
19,386
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Criticized and
classified loans (2):
|
|
|
|
|
|
|
|
|
|
|
|
|
Criticized
loans
|
|
$
68,707
|
|
$
73,925
|
|
$
75,249
|
|
$
76,442
|
|
$
78,457
|
|
|
Classified
loans
|
|
52,760
|
|
55,341
|
|
60,335
|
|
64,857
|
|
80,621
|
|
|
|
Total criticized and
classified loans
|
|
$
121,467
|
|
$ 129,266
|
|
$ 135,584
|
|
$ 141,299
|
|
$ 159,078
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans past due 30-89
days / total portfolio loans
|
0.26
|
%
|
0.38
|
%
|
0.38
|
%
|
0.41
|
%
|
0.42
|
%
|
Loans past due 90
days or more / total portfolio loans
|
0.07
|
|
0.05
|
|
0.07
|
|
0.08
|
|
0.09
|
|
Non-performing loans
/ total portfolio loans
|
|
1.26
|
|
1.31
|
|
1.32
|
|
1.40
|
|
1.64
|
|
Non-performing
assets/total portfolio loans, other
|
|
|
|
|
|
|
|
|
|
|
|
real estate and
repossessed assets
|
|
1.39
|
|
1.45
|
|
1.45
|
|
1.53
|
|
1.77
|
|
Non-performing assets
/ total assets
|
|
0.87
|
|
0.90
|
|
0.92
|
|
0.96
|
|
1.11
|
|
Criticized and
classified loans / total portfolio loans
|
3.08
|
|
3.33
|
|
3.48
|
|
3.68
|
|
4.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses
|
|
$
45,741
|
|
$
45,483
|
|
$
47,368
|
|
$
47,342
|
|
$
50,381
|
|
Provision for credit
losses
|
|
849
|
|
2,199
|
|
3,144
|
|
2,819
|
|
1,021
|
|
Net loan and deposit
account overdraft charge-offs
|
600
|
|
4,141
|
|
2,887
|
|
5,804
|
|
2,433
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annualized net loan
charge-offs /average loans
|
0.06
|
%
|
0.43
|
%
|
0.30
|
%
|
0.60
|
%
|
0.26
|
%
|
Allowance for loan
losses / total portfolio loans
|
1.16
|
%
|
1.17
|
%
|
1.22
|
%
|
1.23
|
%
|
1.33
|
%
|
Allowance for loan
losses / non-performing loans
|
0.92
|
x
|
0.89
|
x
|
0.92
|
x
|
0.88
|
x
|
0.81
|
x
|
Allowance for loan
losses / non-performing loans and
|
|
|
|
|
|
|
|
|
|
|
|
loans past
due
|
|
0.73
|
x
|
0.67
|
x
|
0.69
|
x
|
0.65
|
x
|
0.62
|
x
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
|
|
|
|
|
June
30,
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Sept.
30,
|
|
June
30,
|
|
|
|
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
2013
|
|
Capital
ratios
|
|
|
|
|
|
|
|
|
|
|
|
Tier I leverage
capital
|
|
9.64
|
%
|
9.45
|
%
|
9.27
|
%
|
9.27
|
%
|
9.13
|
%
|
Tier I risk-based
capital
|
|
13.46
|
|
13.29
|
|
13.06
|
|
13.08
|
|
12.85
|
|
Total risk-based
capital
|
|
14.56
|
|
14.40
|
|
14.19
|
|
14.23
|
|
14.08
|
|
Average shareholders'
equity to average assets
|
12.43
|
|
12.27
|
|
12.06
|
|
11.99
|
|
12.05
|
|
Tangible equity to
tangible assets (3)
|
|
7.74
|
|
7.49
|
|
7.35
|
|
7.19
|
|
7.07
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
2013
|
|
2014
|
2013
|
Return on average
tangible equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(annualized)
|
|
$
75,708
|
|
$ 66,596
|
|
$ 60,911
|
|
$ 61,634
|
|
$ 68,256
|
|
$
71,177
|
$ 66,622
|
|
Plus: amortization of
intangibles (annualized) (1)
|
1,256
|
|
1,305
|
|
1,408
|
|
1,434
|
|
1,464
|
|
1,281
|
1,555
|
|
Net income before
amortization of intangibles (annualized)
|
76,964
|
|
67,901
|
|
62,319
|
|
63,068
|
|
69,720
|
|
72,458
|
68,177
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average total
shareholders' equity
|
773,052
|
|
758,841
|
|
745,136
|
|
733,462
|
|
731,935
|
|
765,985
|
727,100
|
|
Less: average
goodwill and other intangibles, net of def. tax
liability
|
(317,679)
|
|
(317,996)
|
|
(318,333)
|
|
(318,661)
|
|
(318,971)
|
|
(317,836)
|
(319,337)
|
|
Average tangible
equity
|
|
455,373
|
|
440,845
|
|
426,803
|
|
414,801
|
|
412,964
|
|
448,149
|
407,763
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average
tangible equity
|
|
16.90%
|
|
15.40%
|
|
14.60%
|
|
15.20%
|
|
16.88%
|
|
16.17%
|
16.72%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense
|
|
$
40,304
|
|
$ 40,095
|
|
$ 40,743
|
|
$ 40,009
|
|
$ 39,499
|
|
$
80,398
|
$ 80,246
|
|
Less: restructuring
and merger-related expense
|
-
|
|
-
|
|
(45)
|
|
(36)
|
|
(51)
|
|
-
|
(1,229)
|
|
Non-interest expense
excluding restructuring and merger-related expense
|
40,304
|
|
40,095
|
|
40,698
|
|
39,973
|
|
39,448
|
|
80,398
|
79,017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
on a fully taxable equivalent basis
|
50,157
|
|
49,148
|
|
49,058
|
|
47,938
|
|
47,747
|
|
99,304
|
95,560
|
|
Non-interest
income
|
|
18,241
|
|
17,049
|
|
16,950
|
|
17,116
|
|
17,724
|
|
35,290
|
35,220
|
|
Net interest income
on a fully taxable equivalent basis plus non-interest
income
|
68,398
|
|
66,197
|
|
66,008
|
|
65,054
|
|
65,471
|
|
134,594
|
130,780
|
|
Efficiency
Ratio
|
|
58.93%
|
|
60.57%
|
|
61.66%
|
|
61.45%
|
|
60.25%
|
|
59.73%
|
60.42%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period
End
|
|
|
|
|
|
|
|
June
30,
|
|
Mar.
31,
|
|
Dec.
31,
|
|
Sept.
30,
|
|
June
30,
|
|
|
|
|
|
|
|
2014
|
|
2014
|
|
2013
|
|
2013
|
|
2013
|
|
|
|
Tangible book
value:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
$
778,625
|
|
$ 761,117
|
|
$ 746,595
|
|
$ 736,688
|
|
$ 726,232
|
|
|
|
|
Less: goodwill
and other intangible assets, net of def. tax liability
|
(317,527)
|
|
(317,840)
|
|
(318,161)
|
|
(318,516)
|
|
(318,828)
|
|
|
|
|
Tangible
equity
|
|
461,098
|
|
443,277
|
|
428,434
|
|
418,172
|
|
407,404
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding
|
|
29,278,925
|
|
29,212,110
|
|
29,175,236
|
|
29,350,061
|
|
29,282,412
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible book
value
|
|
|
$
15.75
|
|
$
15.17
|
|
$ 14.68
|
|
$ 14.25
|
|
$ 13.91
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible equity to
tangible assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders'
equity
|
|
$
778,625
|
|
$ 761,117
|
|
$ 746,595
|
|
$ 736,688
|
|
$ 726,232
|
|
|
|
|
Less: goodwill
and other intangible assets, net of def. tax liability
|
(317,527)
|
|
(317,840)
|
|
(318,161)
|
|
(318,516)
|
|
(318,828)
|
|
|
|
|
Tangible
equity
|
|
461,098
|
|
443,277
|
|
428,434
|
|
418,172
|
|
407,404
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
|
6,277,020
|
|
6,237,577
|
|
6,144,773
|
|
6,138,360
|
|
6,084,011
|
|
|
|
|
Less: goodwill
and other intangible assets, net of def. tax liability
|
(317,527)
|
|
(317,840)
|
|
(318,161)
|
|
(318,516)
|
|
(318,828)
|
|
|
|
|
Tangible
assets
|
|
5,959,493
|
|
5,919,737
|
|
5,826,612
|
|
5,819,844
|
|
5,765,183
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible equity to
tangible assets
|
|
7.74%
|
|
7.49%
|
|
7.35%
|
|
7.19%
|
|
7.07%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Tax effected at 35%.
SOURCE WesBanco, Inc.