WesBanco Announces 29% Increase in Net Income for 2013

By PR Newswire,  January 28, 2014, 08:07:00 PM EDT


WHEELING, W.V., Jan. 28, 2014 /PRNewswire/ -- Paul M. Limbert, 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 earnings per share and related net income for the three and twelve month periods ended December 31, 2013.

Net income increased 29% for the twelve months ended December 31, 2013, to $63.9 million compared to $49.5 million for 2012, while diluted earnings per share were $2.18, an increase of 18% compared to $1.84 per share for 2012. For the fourth quarter of 2013, net income was $15.4 million compared to $12.7 million for the fourth quarter of 2012, representing a 21% increase. Diluted earnings per share for the fourth quarter were $0.52, compared to $0.46 in the 2012 quarter. The increased net income improved the return on average assets to 1.05% in 2013 from 0.88% in 2012, and the return on average tangible equity (non-GAAP measure) increased to approximately 16% from 14%. The results for 2013 include the first full year of the late 2012 acquisition of Pittsburgh based Fidelity Bancorp, Inc. ("Fidelity") that significantly expanded WesBanco's presence in the southwestern Pennsylvania market.

Mr. Limbert commented, "We are pleased with the strong earnings performance in 2013 and third consecutive year of balance sheet growth. Loan growth was achieved through the business development efforts of our additions to customer relationship personnel. Net interest income and margin improved substantially in the last year from higher loan balances as well as a significant reduction in the cost of funds. Accelerated growth of trust assets and growth in deposits over the last year contributed to increased fee income. Credit quality continued to improve, resulting in a significant reduction in problem loans and a lower provision for credit losses. The continued development of our operating and technology resources were also major contributors to the 2013 results."

Financial Condition

Total assets at December 31, 2013 increased 1.1% or $66.1 million from December 31, 2012, primarily due to loan growth. Portfolio loans increased $207.2 million or 5.6% in 2013, with $58.4 million of growth coming in the fourth quarter. Loan growth was achieved through $1.6 billion in loan originations in 2013. This represents an increase of 31.5% in loan originations compared to 2012. Growth was centered in commercial real estate construction and C&I lending as a result of improved economic conditions, increased business activity in markets impacted by Marcellus and Utica shale gas drilling, expansion into the Pittsburgh market, additional lending personnel and continued improvement in loan origination processes. In addition, a $117 million increase in unfunded commitments on construction loans will be advanced over the next twelve to eighteen months which should generate higher loan balances in 2014. Loan growth was funded primarily by growth in deposits and by maturing securities. Deposits increased $118.2 million or 2.4% from December 31, 2012, some of which was the result of initial deposits from bonus and royalty payments for Marcellus and Utica shale gas payments from energy companies operating in our local markets. All deposit types increased except certificates of deposit, which decreased $138.1 million due to lower rate offerings on roll overs of maturities. Available core deposit funding and maturities in the investment portfolio were also used to reduce higher cost borrowings by 19.5%, further reducing cost of funds.

WesBanco continues to maintain strong regulatory capital ratios. At December 31, 2013, tier I leverage was 9.27%, tier I risk-based capital was 13.06%, and total risk-based capital was 14.19%, which were similar to or slightly improved from year end 2012. 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 BASEL III capital standards. Total tangible equity to tangible assets (non-GAAP measure) was 7.35% at December 31, 2013, up from 6.84% at 2012 year-end, despite increased assets, lower other comprehensive income from lower securities valuations and the fourth quarter repurchase of 193,075 shares of WesBanco stock. Strong earnings and improved total capital have enabled WesBanco to increase the quarterly dividend rate, currently at $0.20 per share, six times over the last three years, cumulatively representing a 43% increase, with a 2013 increase of 11%.

Credit Quality

Credit quality has continued to improve over the past quarter and year. Total non-performing loans at December 31, 2013 were $51.5 million or 1.32% of total loans, which represents a 4.0% decrease from September 30, 2013 and a 19.1% decrease from $63.7 million or 1.73% of total loans at December 31, 2012. Criticized and classified loans decreased 4.0% in the fourth quarter of 2013 compared to September 30, 2013 to $135.6 million, or 3.48% of total loans at December 31, 2013 and decreased 21.5% over the last twelve months from $172.7 million and 4.68% last year.

Net charge-offs for the fourth quarter of 2013 were $2.9 million, or 0.30% of average portfolio loans, and $14.2 million or 0.38% for the year, compared to net charge-offs of $4.1 million or 0.47% for the fourth quarter of 2012, and $22.1 million or 0.66% for 2012. As a result of an improvement in all measures of credit quality, including delinquent and non-performing loans and classified and criticized loans, the provision for credit losses decreased to $3.1 million for the fourth quarter of 2013 compared to $3.3 million for the same quarter in 2012, and $9.1 million year-to-date compared to $19.9 million last year. The allowance for loan losses represented 1.22% of total portfolio loans at the end of 2013 compared to 1.43% last year.

Net Interest Income

Net interest income increased $17.1 million or 10.2% in 2013 compared to 2012, due to an 8.5% increase in average earning assets, primarily through increased average loan balances. In addition, the net interest margin increased 5 basis points to 3.58%, benefitting from the loan growth, purchase accounting-related accretion and a continued decrease in funding costs. In the fourth quarter, net interest income increased 9.1% due to a 6.5% increase in average earning assets compared to the same quarter of 2012. The net interest margin for the quarter improved by 8 basis points, also to 3.58%. The margin improvement in 2013 was due to lower funding costs resulting from a 36.1% average reduction in higher rate FHLB advances and other borrowings, primarily through maturities, an 11.8% increase in total average deposits, with 88.6% of the increase from lower cost demand, money market or savings accounts and the repricing at lower rates of maturing CDs. Accretion of various purchase accounting adjustments from the acquisition also improved the net interest margin by 9 b.p. for the year, and 5 b.p. for the quarter.

Non-Interest Income and Non-Interest Expense

For 2013, non-interest income increased $4.5 million or 7.0% compared to 2012. Trust fees increased 8.5% as assets under management continued to increase from customer development initiatives and overall market improvements. Total trust assets were up 13.9% for the year. Net securities brokerage revenues increased 35.7%, due to significant production increases from existing markets, the deployment of an advisor team in the Pittsburgh market, the addition of support and producing staff in several regions, and an increase in referrals and production from a licensed retail banker program. Service charges on deposits and electronic banking fees continued to grow, up 4.6% and 7.6% respectively for 2013. Securities gains were lower due to reduced portfolio restructuring compared to prior periods as interest rates increased. Non-interest income declined by 3.7% in the fourth quarter of 2013 compared to the fourth quarter of 2012 primarily due to lower security gains and lower net gains on sales of mortgage loans, while fee income continued to increase. Mortgage loan sales gains decreased as the percentage of mortgage loans retained for the portfolio increased and loan production declined, beginning in the fourth quarter, as increasing interest rates reduced refinancings. However, WesBanco overall achieved record mortgage loan production in 2013, up 13% from 2012 to $392 million.

Non-interest expense in 2013 increased $10.9 million or 7.3% compared to 2012, but decreased $0.8 million or 2.0% for the fourth quarter of 2013 compared to the fourth quarter of 2012. Increases were partially due to recurring expenses related to operating 13 additional branches acquired in the acquisition. Most of the back office and other administrative savings targeted to be obtained from the merger were accomplished by year-end. Lower merger-related costs benefited both the quarter and the year-to-date periods of 2013 and, combined with generally lower expense growth in the fourth quarter, provided the overall reduction in fourth quarter expenses. Salaries and wages increased 11.1% for 2013 due to routine annual adjustments to compensation, increased full time equivalent employees ("FTEs") in the Pittsburgh market partially offset by the integration efficiencies, increased commissions on higher loan originations and brokerage revenue and higher incentive compensation. Employee benefit expenses increased for the year primarily from increased pension expense and employer taxes. Marketing costs were higher compared to 2012 due to additional marketing initiatives during 2013 and marketing expenses in the new Pittsburgh market.

Financial Results Conference Call

WesBanco, Inc. will host a conference call to discuss the Company's financial results for the fourth quarter of 2013 on Wednesday, January 29, 2014, at 11:00 a.m. E.S.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 at www.wesbanco.com or by registering at http://www.videonewswire.com/event.asp?id=97572. 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 $6.1 billion, operating through 120 branch locations and 105 ATMs in West Virginia, Ohio, and Pennsylvania. WesBanco's banking subsidiary is WesBanco Bank, Inc., headquartered in Wheeling, West Virginia. WesBanco also operates an insurance brokerage company, WesBanco Insurance Services, Inc., and a full service broker/dealer, WesBanco Securities, Inc.

Forward-looking Statements:

Forward-looking statements in this report relating to WesBanco's plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The information contained in this report should be read in conjunction with WesBanco's Form 10-K for the year ended December 31, 2012 and documents subsequently filed by WesBanco with the Securities and Exchange Commission ("SEC"), including WesBanco's Form 10-Q for the quarters ended March 31, 2013, June 30, 2013 and September 30, 2013, respectively, 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, that the businesses of WesBanco and Fidelity may not be integrated successfully or such integration may take longer to accomplish than expected; the expected cost savings and any revenue synergies from the merger of WesBanco and Fidelity may not be fully realized within the expected timeframes; disruption from the merger of WesBanco and Fidelity may make it more difficult to maintain relationships with clients, associates, or suppliers; 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 Year Ended

STATEMENT OF INCOME

December 31,



December 31,

Interest and dividend income

2013



2012



% Change



2013



2012



% Change



Loans, including fees

$ 43,617



$ 42,311



3.09%



$ 175,323



$ 166,656



5.20%



Interest and dividends on securities:



























Taxable

7,178



7,677



(6.50%)



29,193



32,461



(10.07%)





Tax-exempt

3,380



3,129



8.02%



13,128



12,399



5.88%







Total interest and dividends on securities

10,558



10,806



(2.30%)



42,321



44,860



(5.66%)



Other interest income

82



55



49.09%



246



170



44.71%

               Total interest and dividend income

54,257



53,172



2.04%



217,890



211,686



2.93%

Interest expense

























Interest bearing demand deposits

380



395



(3.80%)



1,415



1,526



(7.27%)



Money market deposits

440



397



10.83%



1,462



2,183



(33.03%)



Savings deposits

130



168



(22.62%)



525



864



(39.24%)



Certificates of deposit

4,383



6,321



(30.66%)



22,010



26,371



(16.54%)







Total interest expense on deposits

5,333



7,281



(26.75%)



25,412



30,944



(17.88%)



Federal Home Loan Bank borrowings

251



789



(68.19%)



1,151



4,473



(74.27%)



Other short-term borrowings

625



976



(35.96%)



2,525



4,480



(43.64%)



Junior subordinated debt owed to unconsolidated subsidiary trusts

810



840



(3.57%)



3,315



3,438



(3.58%)







Total interest expense

7,019



9,886



(29.00%)



32,403



43,335



(25.23%)

Net interest income

47,238



43,286



9.13%



185,487



168,351



10.18%



Provision for credit losses

3,144



3,272



(3.91%)



9,086



19,874



(54.28%)

Net interest income after provision for credit losses

44,094



40,014



10.20%



176,401



148,477



18.81%

Non-interest income

























Trust fees

4,883



4,655



4.90%



19,577



18,044



8.50%



Service charges on deposits

4,616



4,565



1.12%



17,925



17,138



4.59%



Electronic banking fees

3,012



2,807



7.30%



12,198



11,336



7.60%



Net securities brokerage revenue

1,604



1,284



24.92%



6,248



4,604



35.71%



Bank-owned life insurance

925



870



6.32%



4,664



3,516



32.65%



Net gains on sales of mortgage loans

456



1,015



(55.07%)



2,614



2,876



(9.11%)



Net securities (losses) / gains

(3)



752



(100.40%)



684



2,463



(72.23%)



Net loss on other real estate owned and other assets

(144)



(7)



(1957.14%)



(81)



(305)



73.44%



Other income

1,601



1,656



(3.32%)



5,456



5,103



6.92%







Total non-interest income

16,950



17,597



(3.68%)



69,285



64,775



6.96%

Non-interest expense

























Salaries and wages

17,352



15,885



9.24%



65,431



58,913



11.06%



Employee benefits

5,774



5,924



(2.53%)



23,255



21,462



8.35%



Net occupancy

2,866



2,771



3.43%



11,809



10,905



8.29%



Equipment

2,768



2,604



6.30%



10,669



9,221



15.70%



Marketing

1,159



953



21.62%



5,174



4,235



22.17%



FDIC insurance

919



937



(1.92%)



3,725



3,899



(4.46%)



Amortization of intangible assets

546



570



(4.21%)



2,288



2,150



6.42%



Restructuring and merger-related expense

45



2,370



(98.10%)



1,310



3,888



(66.31%)



Other operating expenses

9,314



9,567



(2.64%)



37,337



35,447



5.33%







Total non-interest expense

40,743



41,581



(2.02%)



160,998



150,120



7.25%

Income before provision for income taxes

20,301



16,030



26.64%



84,688



63,132



34.14%



Provision for income taxes

4,948



3,380



46.39%



20,763



13,588



52.80%

Net Income

$ 15,353



$ 12,650



21.37%



$ 63,925



$ 49,544



29.03%































Taxable equivalent net interest income

$ 49,058



$ 44,971



9.09%



$ 192,556



$ 175,027



10.02%































Per common share data























Net income per common share - basic

$ 0.52



$ 0.46



13.04%



$ 2.18



$ 1.84



18.48%

Net income per common share - diluted

$ 0.52



$ 0.46



13.04%



$ 2.18



$ 1.84



18.48%

Dividends declared

$ 0.20



$ 0.18



11.11%



$ 0.78



$ 0.70



11.43%

Book value (period end)













$ 25.59



$ 24.45



4.66%

Tangible book value (period end) (1)













$ 14.68



$ 13.48



8.90%

Average common shares outstanding - basic

29,300,463



27,523,958



6.45%



29,270,922



26,867,227



8.95%

Average common shares outstanding - diluted

29,387,485



27,549,655



6.67%



29,344,683



26,888,847



9.13%

Period end common shares outstanding

29,175,236



29,214,660



(0.13%)



29,175,236



29,214,660



(0.13%)































(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 Year Ended

















December 31,



















2013



2012



% Change



















































Return on average assets









1.05

%

0.88

%

19.32

%













Return on average equity









8.72



7.54



15.65















Return on average tangible equity (1)







15.79



13.57



16.36















Yield on earning assets (2)









4.18



4.40



(5.00)















Cost of interest bearing liabilities







0.73



1.04



(29.81)















Net interest spread (2)









3.45



3.36



2.68















Net interest margin (2)









3.58



3.53



1.42















Efficiency (1) (2)











60.99



60.98



0.02















Average loans to average deposits







75.28



74.15



1.52















Annualized net loan charge-offs/average loans







0.38



0.66



(42.42)















Effective income tax rate









24.52



21.52



13.94











































































































































































For the Quarter Ended



















Dec. 31,



Sept. 30,



June 30,



Mar. 31,



Dec. 31,



















2013



2013



2013



2013



2012











































Return on average assets









0.99

%

1.01

%

1.12

%

1.07

%

0.87

%





Return on average equity









8.17



8.40



9.33



9.00



7.36







Return on average tangible equity (1)







14.60



15.20



16.88



16.55



13.06







Yield on earning assets (2)









4.09



4.13



4.20



4.31



4.27







Cost of interest bearing liabilities







0.63



0.73



0.77



0.81



0.93







Net interest spread (2)









3.46



3.40



3.43



3.50



3.34







Net interest margin (2)









3.58



3.52



3.56



3.64



3.50







Efficiency (1) (2)











61.66



61.45



60.25



60.59



62.67







Average loans to average deposits







75.79



76.16



75.27



73.86



74.40







Annualized net loan charge-offs/average loans







0.30



0.60



0.26



0.34



0.47







Effective income tax rate









24.37



23.92



26.63



22.88



21.09







Trust assets, market value at period end







$ 3,688,734



$ 3,501,873



$ 3,440,666



$ 3,451,124



$ 3,238,556











































(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



December 31,







September 30,

September 30, 2013



Assets





2013



2012



% Change



2013

to Dec. 31, 2013



Cash and due from banks



$ 80,001



$ 91,716



(12.77)

%

$ 140,234

(42.95)

%

Due from banks - interest bearing



15,550



33,889



(54.11)



5,405

187.70



Securities:























      Available-for-sale, at fair value



934,386



1,021,244



(8.51)



933,455

0.10



      Held-to-maturity (fair values of $596,308; $639,273 and $607,215, respectively)



598,520



602,509



(0.66)



602,588

(0.68)



            Total securities



1,532,906



1,623,753



(5.59)



1,536,043

(0.20)



Loans held for sale



5,855



21,903



(73.27)



6,601

(11.30)



Portfolio loans:





















      Commercial real estate



1,912,919



1,858,345



2.94



1,867,782

2.42



      Commercial and industrial



556,249



478,025



16.36



544,202

2.21



      Residential real estate



890,804



793,702



12.23



879,703

1.26



      Home equity



284,687



277,226



2.69



283,488

0.42



      Consumer



250,258



280,464



(10.77)



261,363

(4.25)



Total portfolio loans, net of unearned income



3,894,917



3,687,762



5.62



3,836,538

1.52



Allowance for loan losses



(47,368)



(52,699)



10.12



(47,342)

(0.05)



            Net portfolio loans



3,847,549



3,635,063



5.85



3,789,196

1.54



Premises and equipment, net



93,157



88,866



4.83



92,696

0.50



Accrued interest receivable



18,960



19,354



(2.04)



19,903

(4.74)



Goodwill and other intangible assets, net



321,426



324,465



(0.94)



321,972

(0.17)



Bank-owned life insurance



121,390



119,671



1.44



120,457

0.77



Other assets



107,979



120,037



(10.05)



105,853

2.01



Total Assets



$ 6,144,773



$ 6,078,717



1.09

%

$ 6,138,360

0.10

%





























Liabilities





















Deposits:























      Non-interest bearing demand



$ 960,814



$ 874,923



9.82

%

$ 917,478

4.72

%

      Interest bearing demand



857,761



831,368



3.17



870,319

(1.44)



      Money market



942,768



847,805



11.20



858,422

9.83



      Savings deposits



789,709



740,568



6.64



775,776

1.80



      Certificates of deposit



1,511,478



1,649,620



(8.37)



1,638,447

(7.75)



            Total deposits



5,062,530



4,944,284



2.39



5,060,442

0.04



Federal Home Loan Bank borrowings



39,508



111,187



(64.47)



59,918

(34.06)



Other short-term borrowings



150,536



142,971



5.29



124,179

21.23



Junior subordinated debt owed to unconsolidated subsidiary trusts



106,137



113,832



(6.76)



106,127

0.01



            Total borrowings



296,181



367,990



(19.51)



290,224

2.05



Accrued interest payable



2,354



3,856



(38.95)



3,535

(33.41)



Other liabilities



37,113



48,403



(23.33)



47,471

(21.82)



Total Liabilities



5,398,178



5,364,533



0.63



5,401,672

(0.06)































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; 26,214,660 shares and 29,350,061 shares issued, respectively;





















      29,175,236 shares; 29,214,660 shares and 29,350,061 shares outstanding, respectively



61,182



60,863



0.52



61,144

0.06



Capital surplus



244,974



241,672



1.37



244,352

0.25



Retained earnings



460,351



419,246



9.80



450,833

2.11



Treasury stock (192,275; 0 and 0 shares - at cost,





















      respectively)



(5,969)



-



(100.00)



-

(100.00)



Accumulated other comprehensive loss



(12,734)



(6,365)



(100.06)



(18,442)

30.95



Deferred benefits for directors



(1,209)



(1,232)



1.87



(1,199)

(0.83)



Total Shareholders' Equity



746,595



714,184



4.54



736,688

1.34



Total Liabilities and Shareholders' Equity



$ 6,144,773



$ 6,078,717



1.09

%

$ 6,138,360

0.10

%

 

 

WESBANCO, INC.





























Consolidated Selected Financial Highlights























Page 7

(unaudited, dollars in thousands)



























Average balance sheet and





























net interest margin analysis







Three Months Ended December 31,



Year Ended December 31,











2013

2012



2013

2012











Average

Average



Average

Average



Average

Average



Average

Average

Assets









Balance

Rate



Balance

Rate



Balance

Rate



Balance

Rate

Due from banks - interest bearing





$ 42,415

0.25%



$ 22,277

0.36%



$ 37,556

0.22%



$ 26,865

0.25%

Loans, net of unearned income (1)





3,859,211

4.48%



3,463,911

4.86%



3,772,172

4.65%



3,323,078

5.02%

Securities: (2)































      Taxable









1,137,977

2.52%



1,275,530

2.41%



1,175,865

2.48%



1,270,446

2.56%

      Tax-exempt (3)









400,049

5.20%



340,788

5.65%



384,069

5.26%



323,885

5.89%

            Total securities









1,538,026

3.23%



1,616,318

3.09%



1,559,934

3.17%



1,594,331

3.23%

Other earning assets









12,200

1.84%



17,158

0.82%



15,165

1.07%



19,621

0.52%

            Total earning assets (3)





5,451,852

4.09%



5,119,664

4.27%



5,384,827

4.18%



4,963,895

4.40%

Other assets









728,851





641,331





724,484





642,491



Total Assets









$ 6,180,703





$ 5,760,995





$ 6,109,311





$ 5,606,386



































Liabilities and Shareholders' Equity



























Interest bearing demand deposits





$ 869,568

0.17%



$ 814,894

0.19%



$ 858,679

0.16%



$ 755,908

0.20%

Money market accounts







931,309

0.19%



800,059

0.20%



867,473

0.17%



781,400

0.28%

Savings deposits









782,895

0.07%



679,646

0.10%



770,687

0.07%



645,310

0.13%

Certificates of deposit







1,556,305

1.12%



1,558,594

1.61%



1,607,918

1.37%



1,547,379

1.70%

      Total interest bearing deposits





4,140,077

0.51%



3,853,193

0.75%



4,104,757

0.62%



3,729,997

0.83%

Federal Home Loan Bank borrowings





53,508

1.86%



92,264

3.40%



62,344

1.85%



130,048

3.44%

Other borrowings









132,191

1.88%



178,809

2.17%



142,992

1.77%



191,534

2.34%

Junior subordinated debt







106,132

3.03%



108,673

3.08%



107,665

3.08%



106,727

3.22%

      Total interest bearing liabilities





4,431,908

0.63%



4,232,939

0.93%



4,417,758

0.73%



4,158,306

1.04%

Non-interest bearing demand deposits





951,809





802,385





905,921





751,345



Other liabilities









51,850





41,977





52,383





40,051



Shareholders' equity









745,136





683,694





733,249





656,684



Total Liabilities and Shareholders' Equity





$ 6,180,703





$ 5,760,995





$ 6,109,311





$ 5,606,386



Taxable equivalent net interest spread







3.46%





3.34%





3.45%





3.36%

Taxable equivalent net interest margin







3.58%





3.50%





3.58%





3.53%

































(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 December 31, 2013 and 2012,







      and $3.8 million and $4.0 million for the year ended December 31, 2013 and 2012, respectively.















      Additionally, loan accretion included in interest income on acquired Fidelity loans was $0.4 million for the three months









      ended December 31, 2013 and $2.7 million for the year ended December 31, 2013, while accretion on acquired Fidelity interest bearing liabilities







      was $0.4 million for the three months ended December 31, 2013 and $1.7 million for the year ended December 31, 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.













 

 

WESBANCO, INC.



















Consolidated Selected Financial Highlights

















Page 8

(unaudited, dollars in thousands, except shares and per share amounts)



























Quarter Ended

Statement of Income

Dec. 31,



Sept. 30,



June 30,



Mar. 31,



Dec. 31,

Interest income

2013



2013



2013



2013



2012



Loans, including fees

$ 43,617



$ 43,678



$ 43,753



$ 44,276



$ 42,311



Interest and dividends on securities:























Taxable

7,178



7,226



7,357



7,433



7,677





Tax-exempt

3,380



3,355



3,264



3,127



3,129







Total interest and dividends on securities

10,558



10,581



10,621



10,560



10,806



Other interest income

82



58



50



56



55

               Total interest and dividend income

54,257



54,317



54,424



54,892



53,172

Interest expense





















Interest bearing demand deposits

380



369



365



301



395



Money market deposits

440



345



338



339



397



Savings deposits

130



128



127



141



168



Certificates of deposit

4,383



5,597



5,881



6,148



6,321







Total interest expense on deposits

5,333



6,439



6,711



6,929



7,281



Federal Home Loan Bank borrowings

251



291



289



319



789



Other short-term borrowings

625



651



627



623



976



Junior subordinated debt owed to unconsolidated subsidiary trusts

810



805



808



893



840







Total interest expense

7,019



8,186



8,435



8,764



9,886

Net interest income

47,238



46,131



45,989



46,128



43,286



Provision for credit losses

3,144



2,819



1,021



2,102



3,272

Net interest income after provision for credit losses

44,094



43,312



44,968



44,026



40,014

Non-interest income





















Trust fees

4,883



4,854



4,823



5,018



4,655



Service charges on deposits

4,616



4,650



4,462



4,197



4,565



Electronic banking fees

3,012



3,124



3,195



2,866



2,807



Net securities brokerage revenue

1,604



1,506



1,641



1,497



1,284



Bank-owned life insurance

925



911



880



1,949



870



Net gains on sales of mortgage loans

456



745



701



712



1,015



Net securities (losses) / gains

(3)



(15)



686



16



752



Net loss on other real estate owned and other assets

(144)



8



101



(46)



(7)



Other income

1,601



1,333



1,235



1,287



1,656







Total non-interest income

16,950



17,116



17,724



17,496



17,597

Non-interest expense





















Salaries and wages

17,352



16,480



15,772



15,826



15,885



Employee benefits

5,774



5,323



5,813



6,345



5,924



Net occupancy

2,866



2,921



2,830



3,192



2,771



Equipment

2,768



2,692



2,802



2,407



2,604



Marketing

1,159



1,585



1,624



805



953



FDIC insurance

919



916



919



971



937



Amortization of intangible assets

546



556



561



625



570



Restructuring and merger-related expense

45



36



51



1,178



2,370



Other operating expenses

9,314



9,500



9,127



9,398



9,567







Total non-interest expense

40,743



40,009



39,499



40,747



41,581

Income before provision for income taxes

20,301



20,419



23,193



20,775



16,030



Provision for income taxes

4,948



4,884



6,176



4,754



3,380

Net Income

$ 15,353



$ 15,535



$ 17,017



$ 16,021



$ 12,650



























Taxable equivalent net interest income

$ 49,058



$ 47,938



$ 47,747



$ 47,812



$ 44,971



























Per common share data



















Net income per common share - basic

$ 0.52



$ 0.53



$ 0.58



$ 0.55



$ 0.46

Net income per common share - diluted

$ 0.52



$ 0.53



$ 0.58



$ 0.55



$ 0.46

Dividends declared

$ 0.20



$ 0.20



$ 0.19



$ 0.19



$ 0.18

Book value (period end)

$ 25.59



$ 25.10



$ 24.80



$ 24.80



$ 24.45

Tangible book value (period end) (1)

$ 14.68



$ 14.25



$ 13.91



$ 13.87



$ 13.48

Average common shares outstanding - basic

29,300,463



29,325,128



29,245,201



29,211,321



27,523,958

Average common shares outstanding - diluted

29,387,485



29,412,458



29,308,806



29,268,483



27,549,655

Period end common shares outstanding

29,175,236



29,350,061



29,282,412



29,214,018



29,214,660

Full time equivalent employees

1,469



1,462



1,478



1,448



1,507





















































(1) See non-GAAP financial measures for additional information relating to the calculation of this item.













 

 

WESBANCO, INC.























Consolidated Selected Financial Highlights

















Page 9



(unaudited, dollars in thousands)































Quarter Ended











Dec. 31,



Sept. 30,



June 30,



Mar. 31,



Dec. 31,



Asset quality data



2013



2013



2013



2013



2012



Non-performing assets:

























Troubled debt restructurings - accruing



$ 14,861



$ 15,480



$ 19,269



$ 20,420



$ 24,281





Non-accrual loans:



























Troubled debt restructurings



9,324



12,920



15,655



17,106



15,001







Other non-accrual loans



27,309



25,240



27,414



25,620



24,371







      Total non-accrual loans



36,633



38,160



43,069



42,726



39,372







      Total non-performing loans



51,494



53,640



62,338



63,146



63,653





Other real estate and repossessed assets



4,860



5,184



5,007



5,147



5,988







Total non-performing assets



$ 56,354



$ 58,824



$ 67,345



$ 68,293



$ 69,641































Past due loans (1):

























Loans past due 30-89 days



$ 14,831



$ 15,611



$ 15,792



$ 14,507



$ 22,543





Loans past due 90 days or more



2,591



3,043



3,594



4,345



5,294







Total past due loans



$ 17,422



$ 18,654



$ 19,386



$ 18,852



$ 27,837































Criticized and classified loans (2):

























Criticized loans



$ 75,249



$ 76,442



$ 78,457



$ 84,146



$ 86,777





Classified loans



60,335



64,857



80,621



83,988



85,960







Total criticized and classified loans



$ 135,584



$ 141,299



$ 159,078



$ 168,134



$ 172,737































Loans past due 30-89 days / total loans



0.38

%

0.41

%

0.42

%

0.39

%

0.61

%

Loans past due 90 days or more / total loans



0.07



0.08



0.09



0.12



0.14



Non-performing loans / total loans



1.32



1.40



1.64



1.71



1.73



Non-performing assets/total loans, other

























real estate and repossessed assets



1.45



1.53



1.77



1.85



1.89



Criticized and classified loans / total loans



3.48



3.68



4.18



4.56



4.68































Allowance for loan losses























Allowance for loan losses



$ 47,368



$ 47,342



$ 50,381



$ 51,664



$ 52,699



Provision for credit losses



3,144



2,819



1,021



2,102



3,272



Net loan and deposit account overdraft charge-offs

2,887



5,804



2,433



3,032



4,124































Annualized net loan charge-offs /average loans

0.30

%

0.60

%

0.26

%

0.34

%

0.47

%

Allowance for loan losses / portfolio loans



1.22

%

1.23

%

1.33

%

1.40

%

1.43

%

Allowance for loan losses / non-performing loans

0.92

x

0.88

x

0.81

x

0.82

x

0.83

x

Allowance for loan losses / non-performing loans and























loans past due



0.69

x

0.65

x

0.62

x

0.63

x

0.59

x

































































Quarter Ended











Dec. 31,



Sept. 30,



June 30,



Mar. 31,



Dec. 31,











2013



2013



2013



2013



2012



Capital ratios























Tier I leverage capital



9.27

%

9.27

%

9.13

%

8.92

%

9.34

%

Tier I risk-based capital



13.06



13.08



12.85



12.88



12.82



Total risk-based capital



14.19



14.23



14.08



14.13



14.07



Average shareholders' equity to average assets

12.06



11.99



12.05



11.91



11.87



Tangible equity to tangible assets (3)



7.35



7.19



7.07



7.03



6.84



























































(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 10

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









Dec. 31,



Sept. 30,



June 30,



Mar. 31,



Dec. 31,



Dec. 31,

(unaudited, dollars in thousands, except shares and per share amounts)

2013



2013



2013



2013



2012



2013

2012

Return on average tangible equity:



























Net income (annualized)



$ 60,911



$ 61,634



$ 68,256



$ 64,974



$ 50,325



$ 63,925

$ 49,544



Plus: amortization of intangibles (annualized) (1)

1,408



1,434



1,464



1,647



1,473



1,487

1,398



Net income before amortization of intangibles (annualized)

62,319



63,068



69,720



66,621



51,798



65,412

50,942



































Average total shareholders' equity

745,136



733,462



731,935



722,211



683,694



733,249

656,684



Less: average goodwill and other intangibles, net of def. tax liability

(318,333)



(318,661)



(318,971)



(319,706)



(287,008)



(318,913)

(281,326)



Average tangible equity



426,803



414,801



412,964



402,505



396,686



414,336

375,358

































Return on average tangible equity



14.60%



15.20%



16.88%



16.55%



13.06%



15.79%

13.57%

































Net Income, excluding restructuring and merger-related expenses per diluted share:



























Net income





$ 15,353



$ 15,535



$ 17,017



$ 16,021



$ 12,650



$ 63,925

$ 49,544



Add: Restructuring and merger-related expenses, net of tax (1)

29



23



33



766



1,541



852

2,527



Net income, excluding restructuring and merger-related expenses

$ 15,382



$ 15,558



$ 17,050



$ 16,787



$ 14,191



$ 64,777

$ 52,071



































Average common shares outstanding - diluted

29,387,485



29,412,458



29,308,806



29,268,483



27,549,655



29,344,683

26,888,847

































Net income, excluding restructuring and merger-related expense per diluted share

$ 0.52



$ 0.53



$ 0.58



$ 0.57



$ 0.52



$ 2.21

$ 1.94









































Period End















Dec. 31,



Sept. 30,



June 30,



Mar. 31,



Dec. 31,















2013



2013



2013



2013



2012







Tangible book value:





























Total shareholders' equity



$ 746,595



$ 736,688



$ 726,232



$ 724,409



$ 714,184









Less: goodwill and other intangible assets, net of def. tax liability

(318,161)



(318,516)



(318,828)



(319,156)



(320,399)









Tangible equity



428,434



418,172



407,404



405,253



393,785









































Common shares outstanding



29,175,236



29,350,061



29,282,412



29,214,018



29,214,660







































Tangible book value





$ 14.68



$ 14.25



$ 13.91



$ 13.87



$ 13.48







































































Tangible equity to tangible assets:



























Total shareholders' equity



$ 746,595



$ 736,688



$ 726,232



$ 724,409



$ 714,184









Less: goodwill and other intangible assets, net of def. tax liability

(318,161)



(318,516)



(318,828)



(319,156)



(320,399)









Tangible equity



428,434



418,172



407,404



405,253



393,785









































Total assets





6,144,773



6,138,360



6,084,011



6,085,448



6,078,717









Less: goodwill and other intangible assets, net of def. tax liability

(318,161)



(318,516)



(318,828)



(319,156)



(320,399)









Tangible assets



5,826,611



5,819,844



5,765,183



5,766,292



5,758,318







































Tangible equity to tangible assets



7.35%



7.19%



7.07%



7.03%



6.84%



































































































































































































Efficiency ratio:





























Efficiency ratio is calculated by dividing non-interest expense less restructuring and merger related expenses by the sum of net interest income on a fully taxable equivalent basis plus non-interest income.

































(1) Tax effected at 35%.



























 

SOURCE WesBanco, Inc.



This article appears in: News Headlines

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