WESBANCO, INC. 
By WHEELING, W.Va., Jan. 26 /PRNewswire-FirstCall/ -- Paul M. Limbert, President and Chief Executive Officer of WesBanco, Inc. (Nasdaq: WSBC), a Wheeling, West Virginia based multi-state bank holding company, today announced earnings for the fourth quarter and year ended December 31, 2009.
Net income available to common shareholders for the quarter ended December 31, 2009 was $7.3 million while diluted earnings per common share were $0.27, as compared to $5.5 million or $0.21 per common share for the fourth quarter of 2008, and $2.3 million or $0.09 per common share in the prior quarter ended September 30, 2009. For all of 2009, net income available to common shareholders was $18.7 million or $0.70 per common share, while for 2008, net income was $37.8 million or $1.42 per common share. Net income for 2009 before preferred stock dividends and the third quarter amortization expense related to the Troubled Asset Relief Program ("TARP") preferred stock repurchase was $23.9 million as compared to $38.1 million for 2008.
Highlights for the fourth quarter and year ended December 31, 2009 include the following:
-- The provision for credit losses decreased $0.7 million from the fourth
quarter of 2008 and $1.8 million from the third quarter of 2009 to $14.4
million in the fourth quarter of 2009. Lower provision expense for the
2009 fourth quarter reflects a 2.6% decrease in non-performing loans
from the third quarter of 2009, and a 5.9% decrease in past due loans
while charge-offs decreased slightly. The allowance for loan losses
increased in the final quarter of 2009 to 1.76% of total loans from
1.74% at September 30, 2009 and 1.38% at December 31, 2008.
-- Net interest income increased 0.3% in the fourth quarter as compared to
the third quarter of 2009 and 6.4% over the first quarter of 2009 as a
result of the acquisition of five former AmTrust Bank branches in the
Columbus, Ohio metropolitan area on March 27, 2009. Net interest income
and the net interest margin have increased in each of the last three
quarters. The net interest margin increased 11 basis points to 3.46% in
the fourth quarter as compared to the third quarter of 2009 due to lower
rates on interest bearing liabilities, particularly for deposits, as a
result of decreasing market interest rates, maturities of higher rate
certificates of deposit and an increase in lower cost deposits. In
addition, the average balances for higher rate borrowings have decreased
by 12.3% from the first quarter through planned reductions due to
liquidity obtained from the branch acquisitions.
-- In December 2008, WesBanco issued a warrant to the U.S. Department of
the Treasury to purchase 439,282 shares of the Company's common stock
under the TARP program. The warrant was repurchased from the Treasury
department on December 23, 2009 for a negotiated price of $950,000. The
TARP preferred stock issued to the Treasury department in December 2008
was repurchased in September 2009, when the unamortized discount of $2.3
million was expensed.
Mr. Limbert commented, "substantial improvement in net income available to common shareholders in the fourth quarter of 2009 resulted from a combination of consistent growth in net interest income over the last three quarters, reduction in loan loss provision expense through reduced delinquencies, and elimination of the dividend charge on TARP preferred stock. The net interest margin has increased in each of the last two quarters from reductions in our cost of funds due to lower market interest rates. The positive quarter, and the reduction in the size of the balance sheet through the use of the Bank's liquidity position to eliminate higher cost borrowings, improved regulatory capital ratios above our already strong capital position. The recession, however, is not over and continues to affect the allowance for loan losses." Mr. Limbert further remarked, "trust fees improved again in the fourth quarter as equity markets improved, while deposit fee income grew substantially in the last nine months of 2009 due in part to the branch acquisitions in March and implementation of successful retail strategies."
Net Interest Income
Net interest income decreased slightly by 0.7% in the fourth quarter of 2009 and 1.3% for all of 2009 as compared to the same periods in 2008. Average earning assets increased $274.1 million or 6.0% for the quarter and $362.8 million or 7.9% for the year, primarily due to the acquisition of the branches. However, the net interest margin decreased by 25 and 32 basis points in the 2009 fourth quarter and for the year, respectively, as compared to the same periods in 2008, primarily due to reinvesting proceeds from the branch deposit acquisitions into lower yielding, short duration securities. Also, the continuation of the low interest environment in 2009 has impacted the margin as lower security and loan yields and a reduction of interest income from the increased non-performing loans have not been fully offset by decreases in deposit and borrowing cost of funds. However, the margin has benefited from a 5.3% increase in average non-interest bearing deposit balances in 2009, the result of marketing campaigns focused on checking account products.
The net interest margin increased 11 basis points to 3.46% in the fourth quarter as compared to the third quarter of 2009 as a result of a 16 basis point decline in the cost of interest bearing liabilities resulting from the lower interest rate environment and re-pricing of higher rate CDs and certain term borrowings. Net interest income increased by 0.3% from the third to the fourth quarter of 2009 as the benefit of the improved cost of funds was partially offset by a 3.4% decline in average earning assets. Investment security sales and maturities were used to fund the previously anticipated run off of some of AmTrust's former higher rate, single service customer CDs and to proactively reduce FHLB and other maturing borrowings that were generally at higher rates.
Provision for Credit Losses
The provision for credit losses was $14.4 million in the fourth quarter of 2009, a decrease of $0.7 million from the fourth quarter of 2008 and a $1.8 million decrease from the third quarter of 2009. For 2009 the provision was $50.4 million, as compared to $32.6 million in 2008. Lower provision expense for the 2009 fourth quarter reflects decreases in non-performing assets and past due loans from the third quarter of 2009. Higher provision expense for 2009 reflects the general deterioration of credit quality across all segments of the loan portfolio due to the prolonged recession, and three specific larger credits, two of which were customer frauds.
Loans past due 30 days or more decreased 5.9% to 0.88% as a percent of total loans from the third quarter of 2009 and 43.6% from year end 2008. Loans past due 90 days or more and accruing decreased 72.0% from December 31, 2008 to 0.15% of total loans. Non-performing loans decreased $2.1 million from the third quarter to $80.3 million at December 31, 2009 or 2.31% of total loans, and increased $44.0 million from December 31, 2008. The non-performing loan increase in 2009 reflects general deterioration of credit quality which has been most prevalent in the commercial and residential real estate portfolios, but migration into non-accrual status and overall new loan delinquencies have slowed since the first quarter of 2009. Commercial real estate and residential real estate loans represent approximately 62% and 20%, respectively, of non-performing loans at December 31, 2009. Commercial real estate has been impacted by rising vacancy rates and declining property values across all classes of property particularly in the metropolitan markets of central and southwestern Ohio. More residential real estate loans are experiencing extended delinquency that requires them either to be renegotiated to avoid foreclosure whenever possible or placed on non-accrual even if they remain adequately secured. Although categorized as non-performing loans, loans categorized as renegotiated loans are accruing as they generally continue to perform in accordance with their modified terms.
Net charge-offs for the fourth quarter of 2009 increased $5.3 million compared to the fourth quarter of 2008 and decreased slightly compared to the third quarter of 2009. Included in net charge-offs in the 2009 fourth quarter were $3.6 million for three specific loans reserved for in prior quarters and $3.4 million relating to one commercial loan involving borrower fraud. Throughout 2009, worsening economic conditions and declining property values have resulted in higher residential and commercial real estate losses while consumer loan losses have been relatively stable. The provision for loan losses exceeded net charge-offs by $0.4 million in the fourth quarter of 2009 and $11.4 million for all of 2009, which increased the allowance for loan losses to 1.76% of total loans at December 31, 2009 compared to 1.74% at September 30, 2009 and 1.38% at December 31, 2008. The allowance provided coverage of 156% of net charge-offs for the trailing twelve months ended December 31, 2009, and 76% of non-performing loans.
Non-Interest Income
Non-interest income in the fourth quarter of 2009 increased 38.4% over the same quarter in 2008, as nearly all major sources of non-interest income experienced increases, including trust fees, security gains, deposit service charges, securities brokerage income, mortgage gain on sale income, and electronic banking fees. Also contributing to the 2009 fourth quarter increase was a $0.5 million decline in losses recognized on other real estate-owned.
Non-interest income improved by $7.2 million or 12.6%, for the year compared to 2008 due to higher security gains of $4.5 million, growth in securities brokerage income of $1.6 million, a bank owned life insurance claim of $1.0 million, and a combined $1.6 million increase in gains on the sale of mortgage loans, service charges on deposits, and electronic banking fees. Additionally, losses recognized on other real estate-owned declined $0.9 million. These improvements in non-interest income were partially offset by lower trust fees of $1.1 million, due to lower average market values of trust assets, and decreased mortgage servicing income of $0.8 million as a result of increased customer refinancing and an impairment charge to mortgage servicing rights during 2009.
Non-Interest Expense
For the year ended December 31, 2009 non-interest expense increased $7.0 million or 4.9% compared to the same period in 2008; however, expenses only increased $1.1 million or 0.8% excluding Federal Deposit Insurance Corporation ("FDIC") insurance and merger-related expenses. An increase in FDIC insurance of $8.1 million from 2008 results can be attributed to a $2.6 million special assessment in the second quarter of 2009, an increase in the FDIC base rate, usage of certain assessment credits recognized in prior periods and, to a lesser extent, the increase in deposits resulting from the branch acquisitions.
Salaries and wages declined $1.7 million due to a decrease in full time equivalent employees from December 31, 2008 to December 31, 2009; however, employee benefits increased by $4.0 million due to higher health care costs and higher pension expenses resulting from a decline in the value of pension assets experienced in 2008. Improved efficiencies in marketing, net occupancy and equipment, administrative fees, supplies, and postage represented a $1.9 million cost reduction in 2009 as compared to 2008. Miscellaneous taxes decreased by $1.1 million primarily due to state franchise tax reductions and the termination of a REIT subsidiary in the fourth quarter of 2008, while amortization of intangibles expense declined $0.7 million. These cost reductions were partially offset by increased foreclosure expenses, increased costs related to other real estate, higher expenses relating to electronic banking activities and a termination fee related to internet banking software upgrades.
In the fourth quarter of 2009, non-interest expense grew by $3.9 million as compared to the fourth quarter of 2008 due to increases in FDIC insurance, employee health care and pension expenses, restructuring expenses, and other real estate-owned and foreclosure costs, partially offset by a decline in salaries and wages. Restructuring expenses of $1.2 million in the fourth quarter represented costs associated with personnel reductions and impairment of certain branch fixed assets held for sale.
Investments
Total investments at December 31, 2009 increased $327.7 million or 35.0% from the prior year due to the investment of cash from the branch acquisitions, partially offset by security sales at net gains, which funded the repurchase of the TARP preferred stock as well as planned reductions in CDs, Federal Home Loan Bank ("FHLB") borrowings and certain other borrowings. As a result of changes in market interest rates, net unrealized gains on the available-for-sale portfolio increased $3.3 million to $20.8 million at December 31, 2009 from December 31, 2008.
Loans
Total portfolio loans were $3.5 billion at December 31, 2009, down 3.7% from 2008, primarily due to continued strategic reductions in residential mortgage loan balances, while management continues to focus on improving overall credit quality. Reduced new commercial and consumer loan demand as well as normal pay-downs on both consumer and residential loans contributed to the decreases. The average loan to deposit ratio was 87% at December 31, 2009 as compared to 102% in the prior year, primarily as a result of the added liquidity provided by the branch deposit acquisitions.
Deposits
Deposits at December 31, 2009 increased $470.3 million or 13.4% compared to December 31, 2008 due to the branch acquisitions. This increase has been partially offset by expected run off of the acquired, higher-cost CDs over the last three quarters. Some of this runoff has contributed to a remix into lower cost money market and checking account deposits.
Borrowings
FHLB borrowings at December 31, 2009 decreased 16.8% from December 31, 2008 to $496.4 million, while other short-term borrowings decreased $109.3 million or 36.7% from 2008. The shift to a more liquid balance sheet with the recent branch deposit acquisition has provided opportunities to reduce borrowings as they mature.
Income Taxes
The provision for income taxes decreased $5.5 million for the year ended 2009 compared to the same period in 2008 due to a decrease in pre-tax income and a decrease in the effective tax rate. For 2009 the effective tax rate decreased to (4.3%) as compared to 10.5% in 2008, due primarily to a higher percentage of tax-exempt income to total income, and certain filed return adjustments during the year.
Shareholders' Equity
WesBanco continues to maintain strong regulatory capital ratios of 7.86% tier I leverage capital, 11.12% tier I risk-based capital, and 12.37% total risk-based capital, all of which improved from the third quarter of 2009 and are considerably above the "well capitalized" standards promulgated by bank regulators. The improvement in regulatory capital ratios occurred despite the repurchase of the warrant in the fourth quarter which reduced common equity by $950,000. Total tangible common equity to tangible assets (non-GAAP measure) improved to 5.88% at December 31, 2009 from 5.75% in the third quarter, primarily due to balance sheet strategies and improved fourth quarter results, offset somewhat by a decline in other comprehensive income from lower unrealized securities gains and the repurchase of the warrant.
WesBanco is a multi-state bank holding company with total assets of approximately $5.4 billion, operating through 114 branch locations and 138 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, 2008 and documents subsequently filed by WesBanco with the Securities and Exchange Commission ("SEC"), including WesBanco's Form 10-Q as of March 31, June 30, and September 30, 2009, 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 Part I, Item 1A. Risk Factors. 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, Federal Deposit Insurance Corporation, the SEC, the Financial Institution Regulatory Authority and other regulatory bodies; potential legislative and federal and state regulatory actions and reform; 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, greater than expected outflows on recent branch acquisition deposits; 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
------------------------------------------
(unaudited, dollars in thousands, except per share amounts)
For the Three Months Ended
STATEMENT OF INCOME December 31,
------------------- ------------
Interest and dividend
income 2009 2008 % Change
---- ---- --------
Loans, including fees $49,804 $56,320 (11.57%)
Interest and dividends on
securities:
Taxable 9,779 6,940 40.91%
Tax-
exempt 3,204 3,613 (11.32%)
----- ----- ------
Total interest and
dividends on
securities 12,983 10,553 23.03%
------ ------ -----
Other interest income 84 849 (90.13%)
-- --- ------
Total interest
and dividend
income 62,871 67,722 (7.16%)
------ ------ -----
Interest Expense
Interest bearing demand
deposits 757 739 2.50%
Money market deposits 1,834 1,642 11.71%
Savings deposits 601 632 (4.96%)
Certificates of deposit 11,606 14,549 (20.23%)
------ ------ ------
Total interest
expense on
deposits 14,798 17,562 (15.74%)
Federal Home Loan Bank
borrowings 5,035 5,929 (15.08%)
Other short-term borrowings 1,353 1,551 (12.79%)
Junior subordinated debt
owed to unconsolidated
subsidiary trusts 1,120 1,833 (38.88%)
----- ----- ------
Total interest
expense 22,306 26,875 (17.00%)
------ ------ ------
Net interest income 40,565 40,847 (0.69%)
Provision for credit losses 14,353 15,044 (4.59%)
------ ------ -----
Net interest income
after provision for
credit losses 26,212 25,803 1.59%
------ ------ ----
Non-interest income
Trust fees 3,597 3,181 13.08%
Service charges on deposits 6,430 6,083 5.71%
Bank-owned life insurance 963 1,111 (13.35%)
Net securities gains 2,113 374 464.89%
Net gains on sales of
mortgage loans 489 535 (8.66%)
Other income 3,696 1,206 206.49%
----- ----- ------
Total non-
interest income 17,288 12,490 38.41%
------ ------ -----
Non-interest expense
Salaries and wages 13,314 13,698 (2.80%)
Employee benefits 4,949 3,594 37.70%
Net occupancy 2,593 2,428 6.78%
Equipment 2,609 2,782 (6.22%)
Marketing 1,132 1,210 (6.43%)
FDIC Insurance 1,713 157 991.08%
Amortization of intangible
assets 795 939 (15.36%)
Restructuring and merger-
related expenses 1,192 701 70.11%
Other operating expenses 9,288 8,220 12.99%
----- ----- -----
Total non-
interest expense 37,585 33,729 11.43%
------ ------ -----
Income before provision
for income taxes 5,915 4,564 29.60%
Provision for income taxes (1,382) (1,257) (9.94%)
------ ------ -----
Net income $7,297 $5,821 25.35%
====== ====== =====
Preferred dividends and
expenses associated with
unamortized
discount and issuance
costs - 293 (100.00%)
- --- -------
Net Income available to
Common Shareholders $7,297 $5,528 32.00%
====== ====== =====
Taxable equivalent net
interest income $42,291 $42,792 (1.17%)
Per common share data
---------------------
Net income available per
common share - basic $0.27 $0.21 28.57%
Net income available per
common share - diluted $0.27 $0.21 28.57%
Dividends declared $0.14 $0.28 (50.00%)
Book value (period end)
Tangible book value
(period end) (1)
Tangible common book
value (period end)
(1)
Average common shares
outstanding - basic 26,567,653 26,560,889 0.03%
Average common shares
outstanding - diluted 26,567,653 26,579,724 (0.05%)
Period end common
shares outstanding 26,567,653 26,560,889 0.03%
Period end preferred
shares outstanding - 75,000 (100.00%)
For the Year Ended
STATEMENT OF INCOME December 31,
------------------- ------------
Interest and dividend
income 2009 2008 % Change
---- ---- --------
Loans, including fees $204,317 $236,923 (13.76%)
Interest and dividends on
securities:
Taxable 38,651 28,129 37.41%
Tax-
exempt 14,010 14,526 (3.55%)
------ ------ -----
Total interest and
dividends on
securities 52,661 42,655 23.46%
------ ------ -----
Other interest income 386 2,188 (82.38%)
--- ----- ------
Total interest
and dividend
income 257,364 281,766 (8.66%)
------- ------- -----
Interest Expense
Interest bearing demand
deposits 2,921 4,809 (39.26%)
Money market deposits 6,687 8,341 (19.83%)
Savings deposits 2,385 3,089 (22.80%)
Certificates of deposit 52,827 68,787 (23.20%)
------ ------ ------
Total interest
expense on
deposits 64,820 85,026 (23.76%)
Federal Home Loan Bank
borrowings 21,849 20,659 5.76%
Other short-term borrowings 6,971 8,401 (17.02%)
Junior subordinated debt
owed to unconsolidated
subsidiary trusts 5,352 7,143 (25.07%)
----- ----- ------
Total interest
expense 98,992 121,229 (18.34%)
------ ------- ------
Net interest income 158,372 160,537 (1.35%)
Provision for credit losses 50,372 32,649 54.28%
------ ------ -----
Net interest income
after provision for
credit losses 108,000 127,888 (15.55%)
------- ------- ------
Non-interest income
Trust fees 13,746 14,883 (7.64%)
Service charges on deposits 24,372 23,986 1.61%
Bank-owned life insurance 4,623 3,807 21.44%
Net securities gains 6,046 1,556 288.55%
Net gains on sales of
mortgage loans 2,094 1,594 31.39%
Other income 13,708 11,520 18.99%
------ ------ -----
Total non-
interest income 64,589 57,346 12.63%
------ ------ -----
Non-interest expense
Salaries and wages 54,399 56,120 (3.07%)
Employee benefits 19,957 16,004 24.70%
Net occupancy 10,269 10,462 (1.85%)
Equipment 10,726 10,968 (2.20%)
Marketing 5,094 5,668 (10.13%)
FDIC Insurance 8,817 731 1106.16%
Amortization of intangible
assets 3,110 3,810 (18.37%)
Restructuring and merger-
related expenses 1,815 3,945 (53.99%)
Other operating expenses 35,461 34,916 1.56%
------ ------ ----
Total non-
interest expense 149,648 142,624 4.93%
------- ------- ----
Income before provision
for income taxes 22,941 42,610 (46.16%)
Provision for income taxes (992) 4,493 (122.08%)
---- ----- -------
Net income $23,933 $38,117 (37.21%)
======= ======= ======
Preferred dividends and
expenses associated with
unamortized
discount and issuance
costs 5,233 293 1686.14%
----- --- -------
Net Income available to
Common Shareholders $18,700 $37,824 (50.56%)
======= ======= ======
Taxable equivalent net
interest income $165,916 $168,359 (1.45%)
Per common share data
---------------------
Net income available per
common share - basic $0.70 $1.42 (50.70%)
Net income available per
common share - diluted $0.70 $1.42 (50.70%)
Dividends declared $0.84 $1.12 (25.00%)
Book value (period end) $22.16 $24.82 (10.72%)
Tangible book value
(period end) (1) $11.31 $14.74 (23.28%)
Tangible common book
value (period end)
(1) $11.31 $12.02 (5.92%)
Average common shares
outstanding - basic 26,566,133 26,551,467 0.06%
Average common shares
outstanding - diluted 26,567,291 26,563,320 0.01%
Period end common
shares outstanding 26,567,653 26,560,889 0.03%
Period end preferred
shares outstanding - 75,000 (100.00%)
(1) See non-GAAP financial measures for additional information relating
to the calculation of this item.
WESBANCO, INC.
Consolidated Selected Financial Highlights
------------------------------------------
(unaudited, dollars in thousands)
Selected ratios
---------------
For the Three Months Ended
December 31,
------------
2009 2008 % Change
---- ---- --------
Return on average assets 0.53% 0.45% 17.11%
Return on average equity 4.85% 3.77% 28.68%
Return on average tangible
equity (2) 10.06% 7.42% 35.51%
Yield on earning assets (1) 5.28% 6.04% (12.64%)
Cost of interest bearing
liabilities 2.05% 2.65% (22.66%)
Net interest spread (1) 3.23% 3.39% (4.80%)
Net interest margin (1) 3.46% 3.71% (6.79%)
Efficiency (1) 63.09% 61.01% 3.40%
Average loans to average
deposits 87.22% 101.75% (14.28%)
Annualized net loan charge-
offs/average loans 1.59% 0.96% 65.29%
Effective income tax rate (23.36%) (27.54%) 15.17%
Trust Assets, market value at
period end $2,668,610 $2,400,211 11.18%
Selected ratios
---------------
For the Year Ended
December 31,
------------
2009 2008 % Change
---- ---- --------
Return on average assets 0.43% 0.73% (41.10%)
Return on average equity 3.73% 6.42% (41.89%)
Return on average tangible
equity (2) 7.26% 12.58% (42.32%)
Yield on earning assets (1) 5.36% 6.32% (15.21%)
Cost of interest bearing
liabilities 2.28% 2.96% (23.09%)
Net interest spread (1) 3.08% 3.36% (8.28%)
Net interest margin (1) 3.36% 3.68% (8.80%)
Efficiency (1) 64.92% 63.19% 2.74%
Average loans to average
deposits 89.42% 99.52% (10.14%)
Annualized net loan charge-
offs/average loans 1.10% 0.58% 90.48%
Effective income tax rate (4.33%) 10.54% (141.04%)
Trust Assets, market value at
period end
For the Quarter Ending
----------------------
Dec. 31, Sept. 30, June 30,
-------- --------- --------
2009 2009 2009
---- ---- ----
Return on average assets 0.53% 0.38% 0.39%
Return on average equity 4.85% 3.35% 3.48%
Return on average tangible
equity (2) 10.06% 6.68% 6.74%
Yield on earning assets (1) 5.28% 5.30% 5.24%
Cost of interest bearing
liabilities 2.05% 2.21% 2.34%
Net interest spread (1) 3.23% 3.09% 2.90%
Net interest margin (1) 3.46% 3.35% 3.17%
Efficiency (1) 63.09% 61.89% 68.71%
Average loans to average
deposits 87.22% 87.21% 84.80%
Annualized net loan charge-
offs/average loans 1.59% 1.58% 0.68%
Effective income tax rate (23.36%) (7.15%) 0.03%
Trust Assets, market value at
period end $2,668,610 $2,579,384 $2,368,578
For the Quarter Ending
----------------------
Mar. 31, Dec. 31,
-------- --------
2009 2008
---- ----
Return on average assets 0.42% 0.45%
Return on average equity 3.33% 3.77%
Return on average tangible
equity (2) 6.05% 7.42%
Yield on earning assets (1) 5.65% 6.04%
Cost of interest bearing
liabilities 2.52% 2.65%
Net interest spread (1) 3.13% 3.39%
Net interest margin (1) 3.47% 3.71%
Efficiency (1) 66.37% 61.01%
Average loans to average
deposits 99.94% 101.75%
Annualized net loan charge-
offs/average loans 0.57% 0.96%
Effective income tax rate 12.13% (27.54%)
Trust Assets, market value at
period end $2,259,987 $2,400,211
(1) 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.
(2) See non-GAAP financial measures for additional information
relating to the calculation of this item.
WESBANCO, INC.
Consolidated Selected Financial Highlights
------------------------------------------
%
(unaudited, dollars in thousands) Change
Dec. 31,
Balance sheets December 31, September 30, 2009
-------------- ------------ ------------
to
% Sept. 30,
Assets 2009 2008 Change 2009 2009
---- ---- ------ ---- ---------
Cash and due from
banks $72,054 $76,025 (5.22)% $75,257 (4.26)%
Due from banks -
interest bearing 10,813 65,145 (83.40) 11,999 (9.88)
Securities:
Available-for-
sale, at fair
value 1,261,804 934,138 35.08 1,417,687 (11.00)
Held-to-
maturity (fair
values of
1,443; 1,214
and 1,372,
respectively) 1,450 1,450 - 1,450 -
----- ----- - ----- -
Total
securities 1,263,254 935,588 35.02 1,419,137 (10.98)
--------- ------- ----- --------- ------
Loans held for
sale 9,441 3,874 143.71 6,860 37.63
----- ----- ------ ----- -----
Portfolio Loans:
Commercial 451,688 510,902 (11.59) 463,948 (2.64)
Commercial real
estate 1,780,221 1,699,023 4.78 1,764,791 0.87
Residential
real estate 708,397 856,999 (17.34) 739,151 (4.16)
Home equity 239,784 217,436 10.28 235,427 1.85
Consumer 290,856 319,949 (9.09) 298,305 (2.50)
------- ------- ----- ------- -----
Total portfolio
loans, net of
unearned income 3,470,946 3,604,309 (3.70) 3,501,622 (0.88)
Allowance for
loan losses (61,160) (49,803) 22.80 (60,755) 0.67
------- ------- ----- ------- ----
Net portfolio
loans 3,409,786 3,554,506 (4.07) 3,440,867 (0.90)
Premises and
equipment, net 89,603 93,693 (4.37) 91,411 (1.98)
Accrued interest
receivable 20,048 19,966 0.41 22,091 (9.25)
Goodwill and
other intangible
assets, net 288,292 267,883 7.62 289,087 (0.28)
Bank-owned life
insurance 103,637 101,229 2.38 102,670 0.94
Other assets 130,424 104,132 25.25 101,712 28.23
------- ------- ----- ------- -----
Total Assets $5,397,352 $5,222,041 3.36% $5,561,091 (2.94)%
========== ========== ==== ========== =====
Liabilities
Deposits:
Non-interest
bearing demand $545,019 $486,752 11.97% $514,726 5.89%
Interest
bearing demand 450,697 429,414 4.96 467,085 (3.51)
Money market 714,926 479,256 49.17 678,099 5.43
Savings deposits 486,055 423,830 14.68 479,342 1.40
Certificates of
deposit 1,777,536 1,684,664 5.51 1,866,256 (4.75)
--------- --------- ---- --------- -----
Total deposits 3,974,233 3,503,916 13.42 4,005,508 (0.78)
--------- --------- ----- --------- -----
Federal Home Loan
Bank borrowings 496,393 596,890 (16.84) 567,939 (12.60)
Other short-term
borrowings 188,522 297,805 (36.70) 236,884 (20.42)
Junior
subordinated debt
owed to
unconsolidated
subsidiary trusts 111,176 111,110 0.06 111,175 -
------- ------- ---- ------- ----
Total
borrowings 796,091 1,005,805 (20.85) 915,998 (13.09)
------- --------- ------ ------- ------
Accrued interest
payable 9,208 10,492 (12.24) 10,664 (13.65)
Other liabilities 29,104 42,457 (31.45) 36,586 (20.45)
------ ------ ------ ------ ------
Total liabilities 4,808,636 4,562,670 5.39 4,968,756 (3.22)
--------- --------- ---- --------- -----
Shareholders' Equity
Fixed Rate Cumulative
Perpetual Preferred
Stock, Series A,
no par value;
1,000,000
shares authorized;
0 shares,
and 75,000
shares issued
and outstanding,
respectively - 72,332 (100.00) - -
Common stock,
$2.0833 par value;
50,000,000 shares
authorized;
26,633,848 shares
issued;
26,567,653 shares,
26,560,889
shares and 26,567,653
shares outstanding,
respectively 55,487 55,487 - 55,487 -
Capital surplus 192,268 193,221 (0.49) 193,211 (0.49)
Retained earnings 40,788 344,403 (1.05) 337,211 1.06
Treasury stock
(66,195; 72,959
and 66,195
shares - at cost,
respectively) (1,498) (1,661) 9.78 (1,498) -
Accumulated other
comprehensive
income 2,949 (3,182) 192.69 9,195 (67.92)
Deferred benefits
for directors (1,278) (1,229) (3.97) (1,271) 0.53
------ ------ ----- ------ ----
Total
Shareholder's
Equity 588,716 659,371 (10.72) 592,335 (0.61)
------- ------- ------ ------- -----
Total Liabilities
and Shareholders'
Equity $5,397,352 $5,222,041 3.36% $5,561,091 (2.94)%
========== ========== ==== ========== =====
WESBANCO, INC.
Consolidated Selected
Financial Highlights
---------------------
(unaudited, dollars in
thousands)
Average balance sheet and
-------------------------
net interest margin
analysis Three months ended December 31,
------------------- ------------------------------
2009 2008
---- ----
Average Average Average Average
Assets Balance Rate Balance Rate
------- ---- ------- ----
Due from banks -
interest bearing $47,412 0.20% $40,819 2.36%
Loans, net of unearned
income (1) 3,498,133 5.65% 3,601,413 6.22%
Securities: (2)
Taxable 990,989 3.95% 562,479 4.94%
Tax-exempt (3) 298,251 6.61% 337,436 6.59%
------- ---- ------- ----
Total securities 1,289,240 4.56% 899,915 5.56%
Federal funds sold - 0 14,121 0.82%
Other earning assets 31,238 0.77% 35,646 0.82%
------ ---- ------ ----
Total earning assets
(3) 4,866,023 5.28% 4,591,914 6.04%
Other assets 627,422 595,932
------- -------
Total Assets $5,493,445 $5,187,846
========== ==========
Liabilities and Shareholders'
Equity
Interest bearing demand
deposits $462,023 0.65% $445,687 0.66%
Money market accounts 703,065 1.04% 492,289 1.33%
Savings deposits 482,364 0.49% 425,248 0.59%
Certificates of deposit 1,830,379 2.52% 1,675,054 3.46%
--------- ---- --------- ----
Total interest
bearing
deposits 3,477,831 1.69% 3,038,278 2.30%
Federal Home Loan Bank
borrowings 528,971 3.78% 605,953 3.89%
Other borrowings 199,920 2.68% 277,316 2.23%
Junior subordinated debt 111,179 4.00% 111,100 6.56%
------- ---- ------- ----
Total interest
bearing
liabilities 4,317,901 2.05% 4,032,647 2.65%
--------- ---- --------- ----
Non-interest bearing
demand
deposits 533,097 501,087
Other liabilities 45,700 40,952
Shareholders' equity 596,747 613,160
------- -------
Total Liabilities and
Shareholders' Equity $5,493,445 $5,187,846
========== ==========
Taxable equivalent net
interest spread 3.23% 3.39%
==== ====
Taxable equivalent net
interest margin 3.46% 3.71%
==== ====
Average balance sheet and
-------------------------
net interest margin
analysis For the year ended December 31,
------------------- -------------------------------
2009 2008
---- ----
Average Average Average Average
Assets Balance Rate Balance Rate
------- ---- ------- ----
Due from banks -
interest bearing $44,565 0.19% $35,702 2.71%
Loans, net of unearned
income (1) 3,547,122 5.76% 3,648,968 6.49%
Securities: (2)
Taxable 991,434 3.90% 522,523 5.38%
Tax-exempt (3) 326,735 6.60% 328,755 6.80%
------- ---- ------- ----
Total securities 1,318,169 4.57% 851,278 5.93%
Federal funds sold 2,060 0.24% 13,512 2.21%
Other earning assets 31,849 0.92% 31,464 2.93%
------ ---- ------ ----
Total earning assets
(3) 4,943,765 5.36% 4,580,924 6.32%
Other assets 622,418 643,518
------- -------
Total Assets $5,566,183 $5,224,442
========== ==========
Liabilities and Shareholders'
Equity
Interest bearing demand
deposits $455,151 0.64% $433,661 1.11%
Money market accounts 629,520 1.06% 472,634 1.76%
Savings deposits 470,737 0.51% 504,335 0.61%
Certificates of deposit 1,887,051 2.80% 1,758,124 3.91%
--------- ---- --------- ----
Total interest
bearing
deposits 3,442,459 1.88% 3,168,754 2.68%
Federal Home Loan Bank
borrowings 570,008 3.83% 520,636 3.97%
Other borrowings 224,649 3.10% 289,541 2.90%
Junior subordinated debt 111,152 4.82% 111,063 6.43%
------- ---- ------- ----
Total interest
bearing
liabilities 4,348,268 2.28% 4,089,994 2.96%
--------- ---- --------- ----
Non-interest bearing
demand
deposits 524,167 497,681
Other liabilities 52,211 42,766
Shareholders' equity 641,537 594,001
------- -------
Total Liabilities and
Shareholders' Equity $5,566,183 $5,224,442
========== ==========
Taxable equivalent net
interest spread 3.08% 3.36%
==== ====
Taxable equivalent net
interest margin 3.36% 3.68%
==== ====
(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 not material.
(2) Average yields on available-for sale securities are
calculated based on amortized cost.
(3) Taxable eqivalent basis is calcualted on tax-exempt
securities using a rate of 35% for each period presented.
WESBANCO, INC.
Consolidated Selected Financial Highlights
------------------------------------------
(unaudited, dollars in thousands, except per share amounts)
Quarter Ended
-------------
Statement of Income Dec. 31, Sept. 30, June 30,
-------------------
Interest income 2009 2009 2009
---- ---- ----
Loans, including fees $49,804 $50,970 $51,482
Interest and dividends on securities:
Taxable 9,779 10,563 10,791
Tax-
exempt 3,204 3,595 3,698
----- ----- -----
Total interest and dividends
on securities 12,983 14,158 14,489
------ ------ ------
Other interest income 84 84 108
-- -- ---
Total interest and
dividend income 62,871 65,212 66,079
------ ------ ------
Interest Expense
Interest bearing demand deposits 757 787 727
Money market deposits 1,834 1,758 1,848
Savings deposits 601 606 644
Certificates of deposit 11,606 13,062 14,755
------ ------ ------
Total interest expense on
deposits 14,798 16,213 17,974
------ ------ ------
Federal Home Loan Bank borrowings 5,035 5,568 5,614
Other short-term borrowings 1,353 1,780 1,770
Junior subordinated debt owed to
unconsolidated subsidiary trusts 1,120 1,222 1,470
----- ----- -----
Total interest expense 22,306 24,783 26,828
------ ------ ------
Net interest income 40,565 40,429 39,251
Provision for credit losses 14,353 16,200 10,269
------ ------ ------
Net interest income after provision
for credit losses 26,212 24,229 28,982
Non-interest income
Trust fees 3,597 3,508 3,288
Service charges on deposits 6,430 6,648 6,076
Bank-owned life insurance 963 1,873 897
Net securities gains/(losses) 2,113 1,329 2,462
Net gains on sales of mortgage
loans 489 820 297
Other income 3,696 4,377 3,289
----- ----- -----
Total non-interest income 17,288 18,555 16,309
------ ------ ------
Non-interest expense
Salaries and wages 13,314 13,920 13,998
Employee benefits 4,949 5,240 5,061
Net occupancy 2,593 2,572 2,361
Equipment 2,609 2,888 2,687
Marketing 1,132 1,486 1,720
FDIC Insurance 1,713 1,528 4,322
Amortization of intangible assets 795 806 812
Restructuring and merger-related
expenses 1,192 2 192
Other operating expenses 9,288 9,263 8,392
----- ----- -----
Total non-interest expense 37,585 37,705 39,545
------ ------ ------
Income before provision for income
taxes 5,915 5,079 5,746
Provision for income taxes (1,382) (363) 2
------ ---- -
Net income $7,297 $5,442 $5,744
====== ====== ======
Preferred dividends - 3,121 1,057
- ----- -----
Net Income available to Common
Shareholders $7,297 $2,321 $4,687
====== ====== ======
Taxable equivalent net interest
income $42,291 $42,365 $41,242
Per common share data
---------------------
Net income available per common
share - basic $0.27 $0.09 $0.18
Net income available per common
share -diluted $0.27 $0.09 $0.18
Dividends declared $0.14 $0.14 $0.28
Book value (period end) $22.16 $22.30 $24.61
Tangible book value (period end) (1) $11.31 $11.41 $13.69
Tangible common book value (period
end) (1) $11.31 $11.41 $10.96
Average common shares outstanding -
basic 26,567,653 26,567,653 26,567,653
Average common shares outstanding -
diluted 26,567,653 26,568,081 26,568,752
Period end common shares outstanding 26,567,653 26,567,653 26,567,653
Period end preferred shares
outstanding - - 75,000
Full time equivalent employees (2) 1,393 1,428 1,473
Quarter Ended
-------------
Statement of Income Mar. 31, Dec. 31,
-------------------
Interest income 2009 2008
---- ----
Loans, including fees $52,059 $56,320
Interest and dividends on securities:
Taxable 7,518 6,940
Tax-exempt 3,514 3,613
----- -----
Total interest and dividends on securities 11,032 10,553
------ ------
Other interest income 110 849
--- ---
Total interest and dividend income 63,201 67,722
------ ------
Interest Expense -
Intereest bearing demand deposits 650 739
Money market deposits 1,246 1,642
Savings deposits 534 632
Certificates of deposit 13,404 14,549
------ ------
Total interest expense on deposits 15,834 17,562
------ ------
Federal Home Loan Bank borrowings 5,632 5,929
Other short-term borrowings 2,069 1,551
Junior subordinated debt owed to unconsolidated
subsidiary trusts 1,539 1,833
----- -----
Total interest expense 25,074 26,875
------ ------
Net interest income 38,127 40,847
Provision for credit losses 9,550 15,044
----- ------
Net interest income after provision for credit
losses 28,577 25,803
Non-interest income
Trust fees 3,353 3,181
Service charges on deposits 5,217 6,083
Bank-owned life insurance 892 1,111
Net securities gains/(losses) 142 374
Net gains on sales of mortgage loans 488 535
Other income 2,344 1,206
----- -----
Total non-interest income 12,436 12,490
------ ------
Non-interest expense
Salaries and wages 13,167 13,698
Employee benefits 4,707 3,594
Net occupancy 2,744 2,428
Equipment 2,542 2,782
Marketing 756 1,210
FDIC Insurance 1,254 157
Amortization of intangible assets 698 939
Restructuring and merger-related expenses 429 701
Other operating expenses 8,515 8,220
----- -----
Total non-interest expense 34,812 33,729
------ ------
Income before provision for income taxes 6,201 4,564
Provision for income taxes 752 (1,257)
--- ------
Net income $5,449 $5,821
====== ======
Preferred dividends 1,055 293
----- ---
Net Income available to Common Shareholders $4,394 $5,528
====== ======
-
Taxable equivalent net interest income $40,019 $42,792
Per common share data
---------------------
Net income available per common share - basic $0.17 $0.21
Net income available per common share - diluted $0.17 $0.21
Dividends declared $0.28 $0.28
Book value (period end) $24.85 $24.82
Tangible book value (period end) (1) $14.00 $14.74
Tangible common book value (period end) (1) $11.27 $12.02
Average common shares outstanding - basic 26,561,490 26,560,889
Average common shares outstanding - diluted 26,563,945 26,579,724
Period end common shares outstanding 26,567,653 26,560,889
Period end preferred shares outstanding
