EX-99.1 2 ex991.htm 1ST QTR 2014 EARNINGS RELEASE ex991.htm

NEWS FOR IMMEDIATE RELEASE

April 22, 2014                                                                           For Further Information Contact:

Paul M. Limbert
President and Chief Executive Officer
or
Robert H. Young
Executive Vice President and Chief Financial Officer

(304) 234-9000
NASDAQ Symbol: WSBC
Website: www.wesbanco.com


WesBanco Announces Increase in Net Income

Wheeling, WV… 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 months ended March 31, 2014.
 
Net income for the three months ended March 31, 2014 was $16.4 million, compared to $15.4 million for the fourth quarter of 2013, representing an increase of 7.0%, while diluted earnings per share were $0.56, compared to $0.52 per share for the fourth quarter of 2013, representing an increase of 7.7%.  As compared to the first quarter of 2013, net income increased 2.5% and diluted earnings per share increased by 1.8%.  The increase in net income improved the return on average assets to 1.08% in the first quarter compared to 0.99% in the 2013 fourth quarter, and the return on tangible equity (non-GAAP measure) increased to 15.4% compared to 14.6%.  Both ratios are above fourth quarter 2013 peer group averages, the most recent available.

Mr. Limbert commented, "We are very pleased with our first quarter results and operating accomplishments, as well as the opportunity to share the success with our shareholders by increasing the quarterly dividend rate $0.02 per share or 10% to $0.22 per share paid on April 1st.  The quarterly dividend has increased 16% since April 1st of last year. WesBanco continued to produce strong earnings in the first quarter of 2014 by increasing net interest income through growth in assets and substantial reductions in cost of funds.  Significant improvements in trust fees and securities brokerage revenue contributed to revenue growth.  Credit quality improvements again reduced non-performing, delinquent, criticized and classified loans. To provide additional opportunity to grow loans and deposits, we opened two new branches in the Columbus market over the past few months and we are currently constructing another branch in the southern portion of the Pittsburgh market.  While we were improving our branch network, substantial data processing and other infrastructure improvements completed in 2013 have contributed to our ability to control growth in expenses.”


Financial Condition

Total assets at March 31, 2014 increased 2.7% or $162.1 million from March 31, 2013, primarily due to loan growth.  Portfolio loans increased $203.3 million or 5.5% over the last year.  Loan growth was achieved through $1.5 billion in loan originations over the last twelve months. This represents an increase of 8.5% in loan originations compared to the previous twelve months.  Loan growth was centered in commercial real estate, C&I and residential real estate 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.  Loan growth was funded primarily by growth in deposits and by maturing securities.  Deposits increased $209.5 million or 4.2% from March 31, 2013, some of which was the result of deposits for Marcellus and Utica shale gas payments.  All deposit types increased except certificates of deposit, which decreased $162.6 million due to lower rate offerings for maturing CDs.  Available deposit funding and maturities in the investment portfolio were also used to reduce higher cost borrowings by 24.8%, further reducing the cost of funds.  Total assets at March 31, 2014 were relatively unchanged compared to 2013 year-end, as were total loans.  Loan growth was tempered by weather-related delays in anticipated advances on commercial real estate construction loans, continued prudent underwriting and pricing of new loans, and a focus on achieving greater diversification of the loan portfolio. However, the commercial loan and residential mortgage pipeline has strengthened during the first quarter of 2014.

WesBanco continues to maintain strong regulatory capital ratios.  At March 31, 2014, tier I leverage was 9.45%, tier I risk-based capital was 13.30%, and total risk-based capital was 14.40%, which all improved from March 31, 2013.  Both
 
 
Page 2
 
                                                                                                                                                                                                                                                                                                         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 7.49% at March 31, 2014, up from 7.04% at March 31, 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 at March 31, 2014 were $50.9 million or 1.31% of total loans, which represents a 1.1% decrease from December 31, 2013 and a 19.4% decrease from $63.1 million or 1.71% of total loans at March 31, 2013.  Criticized and classified loans decreased 4.7% in the first quarter of 2014 compared to December 31, 2013 to $129.3 million, or 3.33% of total loans at March 31, 2014.  Over the last twelve months criticized and classified loans decreased 23.1% from $168.1 million and 4.56% of total loans last year.

Net charge-offs for the first quarter of 2014 were 0.43% of average portfolio loans, compared to 0.34% for the first quarter of 2013. The average over the last twelve months was 0.40%. As a result of the continued improvement in delinquent, non-performing and classified and criticized loans, the provision for credit losses decreased to $2.2 million for the first quarter of 2014 as compared to $3.1 million for the fourth quarter of 2013, and it was nearly unchanged from $2.1 million in the first quarter of 2013.  The allowance for loan losses represented 1.17% of total portfolio loans at March 31, 2014, compared to 1.22% at December 31, 2013 and 1.40% at the end of the 2013 first quarter.

 
 
Net Interest Income

Net interest income increased $1.2 million or 2.6% in the first quarter of 2014 compared to the first quarter of 2013, due to a 3.1% increase in average earning assets through increased average loan balances.  The net interest margin was nearly unchanged at 3.63% compared to 3.64% in the first quarter of 2013.  Accretion of various purchase accounting adjustments from the 2012 acquisition also benefited the net interest margin throughout 2013 and the first quarter of 2014, but at a decreasing rate. Excluding this benefit from both periods, the net interest margin increased by 8 basis points from the first quarter of 2013, from 3.50% to 3.58%.  The improved adjusted net interest margin in the current low interest rate environment was assisted by the aforementioned loan growth, as rates earned on loans are higher than securities.  In addition, funding costs continued to decrease as a result of a 30.1% reduction in higher-rate average FHLB and other borrowings, primarily through maturities, and a 9.3% increase in lower-cost demand, money market and savings account deposits, while higher-cost CDs decreased by 8.5%.  Overall average deposits increased by 3.4% from last year’s first quarter.


Non-Interest Income and Non-Interest Expense

For the first quarter of 2014, non-interest income decreased $0.4 million or 2.6% compared to the first quarter of 2013.  The decrease was due to a $1.1 million bank-owned life insurance death benefit in the first quarter of 2013.  Excluding this benefit, non-interest income increased $0.7 million in the first quarter of 2014. Trust fees increased 12.6% as assets under management continued to increase from customer development initiatives and overall market improvements. Total trust assets were $3.8 billion at March 31, 2014, representing an increase of 8.7% from $3.5 billion at March 31, 2013. Net securities brokerage revenues increased 22.2%, 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.  Electronic banking fees continued to grow, up 5.1% for the first quarter of 2014.  Service charges on deposits decreased 8.0% compared to the first 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 78.4% as increasing interest rates reduced refinancings resulting in lower production and, in addition, the percentage of mortgage loans retained for the portfolio increased.  Mortgage activity was also impacted by the recently-adopted Qualified Mortgage and Ability-to-Repay rules, which have somewhat limited our product offerings.

Non-interest expense decreased $0.7 million or 1.6% for the first quarter compared to the first quarter of 2013, partially due to merger-related expenses of $1.2 million incurred in the first quarter of 2013.  Total non-interest expense would have only increased $0.5 million or 1.3% for the quarter without these merger-related expenses.  Salaries and wages increased 4.1%, due to routine annual adjustments to compensation, increased commissions on higher brokerage revenue and increased incentive and stock-related compensation.  Employee benefits expense decreased 10.0%, primarily from
 
 
Page 3
 
 
decreased pension expense, partially offset by increased health insurance costs.  Net occupancy and equipment expense increased due to higher weather-related expenses, the opening of two branches over the last two quarters and improvements in internal infrastructure including data processing, communication and teller equipment in the second half of last year. However, despite these increases, overall efficiency remained at 60.6% for the quarter, the same as last year.


Financial Results Conference Call

WesBanco, Inc. will host a conference call to discuss the Company's financial results for the first quarter of 2014 on Wednesday, April 23, 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=98671. 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 $6.2 billion, operating through 120 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.

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”), which are available at the SEC’s website, www.sec.gov or at WesBanco’s website, www.wesbanco.com.  Investors are cautioned that forward-looking statements, which are not historical fact, involve risks and uncertainties, including those detailed in WesBanco’s most recent Annual Report on Form 10-K filed with the SEC under “Risk Factors” in Part I, Item 1A.  Such statements are subject to important factors that could cause actual results to differ materially from those contemplated by such statements, including, without limitation, the effects of changing regional and national economic conditions; changes in interest rates, spreads on earning assets and interest-bearing liabilities, and associated interest rate sensitivity; sources of liquidity available to WesBanco and its related subsidiary operations; potential future credit losses and the credit risk of commercial, real estate, and consumer loan customers and their borrowing activities; actions of the Federal Reserve Board, the Federal Deposit Insurance Corporation, the SEC, the Financial Institution Regulatory Authority, the Municipal Securities Rulemaking Board, the Securities Investors Protection Corporation, and other regulatory bodies; potential legislative and federal and state regulatory actions and reform, including, without limitation, the impact of the implementation of the Dodd-Frank Act; adverse decisions of federal and state courts; fraud, scams and schemes of third parties; internet hacking; competitive conditions in the financial services industry; rapidly changing technology affecting financial services; marketability of debt instruments and corresponding impact on fair value adjustments; and/or other external developments materially impacting WesBanco’s operational and financial performance.  WesBanco does not assume any duty to update forward-looking statements.


WESBANCO, INC.
           
Consolidated Selected Financial Highlights
         
Page 4
(unaudited, dollars in thousands, except shares and per share amounts)
                   
         
For the Three Months Ended
STATEMENT OF INCOME
 
March 31,
Interest and dividend income
 
2014
 
2013
 
% Change
 
Loans, including fees
 
 $         42,746
 
 $           44,276
 
(3.46%)
 
Interest and dividends on securities:
           
   
Taxable
 
               7,225
 
                7,433
 
(2.80%)
   
Tax-exempt
 
               3,385
 
                3,127
 
8.25%
     
Total interest and dividends on securities
 
             10,610
 
              10,560
 
0.47%
 
Other interest income
 
                  101
 
                     56
 
80.36%
          Total interest and dividend income
 
             53,457
 
              54,892
 
(2.61%)
Interest expense
           
 
Interest bearing demand deposits
 
                  374
 
                   301
 
24.25%
 
Money market deposits
 
                  440
 
                   339
 
29.79%
 
Savings deposits
 
                  130
 
                   141
 
(7.80%)
 
Certificates of deposit
 
               3,630
 
                6,148
 
(40.96%)
     
Total interest expense on deposits
 
               4,574
 
                6,929
 
(33.99%)
 
Federal Home Loan Bank borrowings
 
                  211
 
                   319
 
(33.86%)
 
Other short-term borrowings
 
                  557
 
                   623
 
(10.59%)
 
Junior subordinated debt owed to unconsolidated subsidiary trusts
 
                  790
 
                   893
 
(11.53%)
     
Total interest expense
 
               6,132
 
                8,764
 
(30.03%)
Net interest income
 
             47,325
 
              46,128
 
2.59%
 
Provision for credit losses
 
               2,199
 
                2,102
 
4.61%
Net interest income after provision for credit losses
 
             45,126
 
              44,026
 
2.50%
Non-interest income
           
 
Trust fees
 
5,648
 
5,018
 
12.55%
 
Service charges on deposits
 
3,860
 
4,197
 
(8.03%)
 
Electronic banking fees
 
3,013
 
2,866
 
5.13%
 
Net securities brokerage revenue
 
1,829
 
1,497
 
22.18%
 
Bank-owned life insurance
 
875
 
1,949
 
(55.11%)
 
Net gains on sales of mortgage loans
 
154
 
712
 
(78.37%)
 
Net securities gains
 
10
 
16
 
(37.50%)
 
Net gain / (loss) on other real estate owned and other assets
 
113
 
(46)
 
345.65%
 
Other income
 
               1,547
 
1,287
 
20.20%
     
Total non-interest income
 
17,049
 
17,496
 
(2.55%)
Non-interest expense
           
 
Salaries and wages
 
16,467
 
15,826
 
4.05%
 
Employee benefits
 
5,708
 
6,345
 
(10.04%)
 
Net occupancy
 
3,491
 
3,192
 
9.37%
 
Equipment
 
2,783
 
2,407
 
15.62%
 
Marketing
 
1,003
 
805
 
24.60%
 
FDIC insurance
 
877
 
971
 
(9.68%)
 
Amortization of intangible assets
 
495
 
625
 
(20.80%)
 
Restructuring and merger-related expense
 
                      -
 
                1,178
 
(100.00%)
 
Other operating expenses
 
               9,271
 
9,398
 
(1.35%)
     
Total non-interest expense
 
40,095
 
40,747
 
(1.60%)
Income before provision for income taxes
 
             22,080
 
              20,775
 
6.28%
 
Provision for income taxes
 
               5,659
 
                4,754
 
19.04%
Net Income
 
 $         16,421
 
 $           16,021
 
2.50%
                   
Taxable equivalent net interest income
 
 $         49,148
 
 $         47,812
 
2.79%
                   
Per common share data
           
Net income per common share - basic
 
 $              0.56
 
 $               0.55
 
1.82%
Net income per common share - diluted
 
 $              0.56
 
 $               0.55
 
1.82%
Dividends declared
 
 $              0.22
 
 $               0.19
 
15.79%
Book value (period end)
 
 $            26.05
 
 $             24.80
 
5.04%
Tangible book value (period end) (1)
 
 $            15.17
 
 $             13.87
 
9.37%
Average common shares outstanding - basic
 
29,182,183
 
29,211,321
 
(0.10%)
Average common shares outstanding - diluted
 
29,262,680
 
       29,268,483
 
(0.02%)
Period end common shares outstanding
 
     29,212,110
 
       29,214,018
 
(0.01%)
                   
(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 Three Months Ended              
       
March 31,
             
       
2014
 
2013
 
% Change
             
                               
Return on average assets
   
                 1.08
%
                 1.07
%
                 0.93
%
           
Return on average equity
   
                 8.78
 
                 9.00
 
               (2.44)
             
Return on average tangible equity (1)
 
15.40
 
16.55
 
               (6.95)
             
Yield on earning assets (2)
   
                 4.08
 
                 4.31
 
               (5.34)
             
Cost of interest bearing liabilities
 
                 0.56
 
                 0.81
 
             (30.86)
             
Net interest spread (2)
   
                 3.52
 
                 3.50
 
                 0.57
             
Net interest margin (2)
   
                 3.63
 
                 3.64
 
               (0.27)
             
Efficiency (1) (2)
     
               60.57
 
               60.59
 
               (0.03)
             
Average loans to average deposits
 
               75.52
 
               73.86
 
                 2.25
             
Annualized net loan charge-offs/average loans
                 0.43
 
                 0.34
 
               26.47
             
Effective income tax rate
   
               25.63
 
               22.88
 
               12.02
             
                               
                               
                               
                               
       
For the Quarter Ended
     
       
Mar. 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
Mar. 31,
     
       
2014
 
2013
 
2013
 
2013
 
2013
     
                               
Return on average assets
   
1.08
%
0.99
%
1.01
%
1.12
%
1.07
%
   
Return on average equity
   
8.78
 
8.17
 
8.40
 
9.33
 
9.00
     
Return on average tangible equity (1)
 
15.40
 
14.60
 
15.20
 
16.88
 
16.55
     
Yield on earning assets (2)
   
4.08
 
4.09
 
4.13
 
4.20
 
4.31
     
Cost of interest bearing liabilities
 
0.56
 
0.63
 
0.73
 
0.77
 
0.81
     
Net interest spread (2)
   
3.52
 
3.46
 
3.40
 
3.43
 
3.50
     
Net interest margin (2)
   
3.63
 
3.58
 
3.52
 
3.56
 
3.64
     
Efficiency (1) (2)
     
60.57
 
61.66
 
61.45
 
60.25
 
60.59
     
Average loans to average deposits
 
75.52
 
75.79
 
76.16
 
75.27
 
73.86
     
Annualized net loan charge-offs/average loans
0.43
 
0.30
 
0.60
 
0.26
 
0.34
     
Effective income tax rate
   
25.63
 
24.37
 
23.92
 
26.63
 
22.88
     
Trust assets, market value at period end
 
 $     3,752,142
 
 $     3,688,734
 
 $     3,501,873
 
 $     3,440,666
 
 $     3,451,124
     
                               
(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
March 31,
     
December 31,
December 31, 2013
 
Assets
 
2014
 
2013
 
% Change
 
2013
to March 31, 2014
 
Cash and due from banks
 $      143,315
 
 $      121,692
 
                 17.77
%
 $              80,001
                         79.14
 %
Due from banks - interest bearing
           31,881
 
           56,571
 
               (43.64)
 
                 15,550
                       105.02
 
Securities:
                 
 
Available-for-sale, at fair value
         959,775
 
         993,270
 
                 (3.37)
 
               934,386
                           2.72
 
 
Held-to-maturity (fair values of $607,886; $624,627 and $596,308, respectively)
         597,624
 
         592,033
 
                   0.94
 
               598,520
                         (0.15)
 
   
Total securities
      1,557,399
 
      1,585,303
 
                 (1.76)
 
            1,532,906
                           1.60
 
Loans held for sale
             6,300
 
           14,299
 
               (55.94)
 
                   5,855
                           7.60
 
Portfolio loans:
                 
 
Commercial real estate
      1,915,578
 
      1,831,754
 
                   4.58
 
            1,912,919
                           0.14
 
 
Commercial and industrial
         560,511
 
         495,748
 
                 13.06
 
               556,249
                           0.77
 
 
Residential real estate
         888,666
 
         808,528
 
                   9.91
 
               890,804
                         (0.24)
 
 
Home equity
         284,879
 
         278,812
 
                   2.18
 
               284,687
                           0.07
 
 
Consumer
         237,468
 
         268,959
 
               (11.71)
 
               250,258
                         (5.11)
 
Total portfolio loans, net of unearned income
      3,887,102
 
      3,683,801
 
                   5.52
 
            3,894,917
                         (0.20)
 
Allowance for loan losses
          (45,483)
 
         (51,664)
 
                 11.96
 
               (47,368)
                           3.98
 
   
Net portfolio loans
      3,841,619
 
      3,632,137
 
                   5.77
 
            3,847,549
                         (0.15)
 
Premises and equipment, net
           92,814
 
           90,879
 
                   2.13
 
                 93,157
                         (0.37)
 
Accrued interest receivable
           20,149
 
           19,909
 
                   1.21
 
                 18,960
                           6.27
 
Goodwill and other intangible assets, net
         320,931
 
         323,003
 
                 (0.64)
 
               321,426
                         (0.15)
 
Bank-owned life insurance
         122,265
 
         118,666
 
                   3.03
 
               121,390
                           0.72
 
Other assets
         100,904
 
         113,026
 
               (10.72)
 
               107,979
                         (6.55)
 
Total Assets
 $   6,237,577
 
 $   6,075,485
 
                   2.67
%
 $         6,144,773
                        1.51
%
                         
Liabilities
                 
Deposits:
                 
 
Non-interest bearing demand
 $   1,022,119
 
 $      888,109
 
                 15.09
%
 $            960,814
                           6.38
%
 
Interest bearing demand
         918,629
 
         870,067
 
                   5.58
 
               857,761
                           7.10
 
 
Money market
         980,890
 
         849,401
 
                 15.48
 
               942,768
                           4.04
 
 
Savings deposits
         824,276
 
         766,265
 
                   7.57
 
               789,709
                           4.38
 
 
Certificates of deposit
      1,469,804
 
      1,632,360
 
                 (9.96)
 
            1,511,478
                         (2.76)
 
   
Total deposits
      5,215,718
 
      5,006,202
 
                   4.19
 
            5,062,530
                           3.03
 
Federal Home Loan Bank borrowings
           23,282
 
           60,767
 
               (61.69)
 
                 39,508
                       (41.07)
 
Other short-term borrowings
           92,737
 
         128,372
 
               (27.76)
 
               150,536
                       (38.40)
 
Junior subordinated debt owed to unconsolidated subsidiary trusts
         106,146
 
         106,109
 
                   0.03
 
               106,137
                           0.01
 
   
Total borrowings
         222,165
 
         295,248
 
               (24.75)
 
               296,181
                       (24.99)
 
Accrued interest payable
             2,250
 
             3,620
 
               (37.85)
 
                   2,354
                         (4.42)
 
Other liabilities
           36,327
 
           46,006
 
               (21.04)
 
                 37,113
                         (2.12)
 
Total Liabilities
      5,476,460
 
      5,351,076
 
                   2.34
 
            5,398,178
                           1.45
 
                         
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; 29,214,018 shares and 29,367,511 shares issued, respectively;
               
 
29,212,110 shares; 29,214,018 shares and 29,175,236 shares outstanding, respectively
           61,182
 
           60,862
 
                   0.53
 
                 61,182
                              -
 
Capital surplus
         245,085
 
         241,880
 
                   1.33
 
               244,974
                           0.05
 
Retained earnings
         470,352
 
         429,715
 
                   9.46
 
               460,351
                           2.17
 
Treasury stock (155,401; 0 and 192,275 shares - at cost,
                 
 
respectively)
            (4,822)
 
                   -
 
             (100.00)
 
                 (5,969)
                         19.22
 
Accumulated other comprehensive loss
            (9,461)
 
           (6,806)
 
               (39.01)
 
               (12,734)
                         25.70
 
Deferred benefits for directors
            (1,219)
 
           (1,242)
 
                   1.85
 
                 (1,209)
                         (0.83)
 
Total Shareholders' Equity
         761,117
 
         724,409
 
                   5.07
 
               746,595
                           1.95
 
Total Liabilities and Shareholders' Equity
 $   6,237,577
 
 $   6,075,485
 
                   2.67
%
 $         6,144,773
                           1.51
%

 
WESBANCO, INC.
             
Consolidated Selected Financial Highlights
         
Page 7
(unaudited, dollars in thousands)
           
Average balance sheet and
             
net interest margin analysis
 
Three Months Ended March 31,
       
2014
 
2013
       
Average
Average
 
Average
Average
Assets
     
Balance
Rate
 
Balance
Rate
Due from banks - interest bearing
 
 $                      51,149
0.17%
 
 $                         66,623
0.15%
Loans, net of unearned income (1)
 
                    3,873,789
4.48%
 
                       3,664,629
4.90%
Securities: (2)
               
    Taxable
     
1,140,982
2.53%
 
1,199,706
2.48%
    Tax-exempt (3)
     
399,794
5.21%
 
358,524
5.37%
        Total securities
   
1,540,776
3.23%
 
1,558,230
3.14%
Other earning assets
   
                         11,568
2.73%
 
                            20,542
0.60%
         Total earning assets (3)
 
                    5,477,282
4.08%
 
                       5,310,024
4.31%
Other assets
     
709,216
   
754,962
 
Total Assets
     
 $                 6,186,498
   
 $                    6,064,986
 
                 
Liabilities and Shareholders' Equity
           
Interest bearing demand deposits
 
 $                    887,518
0.17%
 
 $                       846,494
0.14%
Money market accounts
   
945,412
0.19%
 
845,751
0.16%
Savings deposits
     
808,710
0.07%
 
750,430
0.08%
Certificates of deposit
   
1,504,605
0.98%
 
1,645,058
1.52%
    Total interest bearing deposits
 
4,146,245
0.45%
 
                       4,087,733
0.69%
Federal Home Loan Bank borrowings
 
35,028
2.44%
 
                            75,438
1.72%
Other borrowings
     
115,326
1.96%
 
139,650
1.81%
Junior subordinated debt
   
106,141
3.02%
 
                          112,376
3.23%
      Total interest bearing liabilities
 
4,402,740
0.56%
 
4,415,197
0.81%
Non-interest bearing demand deposits
 
983,096
   
874,078
 
Other liabilities
     
41,821
   
53,497
 
Shareholders' equity
   
758,841
   
722,214
 
Total Liabilities and Shareholders' Equity
 
 $                 6,186,498
   
 $                    6,064,986
 
Taxable equivalent net interest spread
 
3.52%
   
3.50%
Taxable equivalent net interest margin
 
3.63%
   
3.64%
                 
(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 $0.9 million and $1.0 million for the three months ended March 31, 2014 and 2013, respectively.
     Additionally, loan accretion included in interest income on acquired Fidelity loans was $0.4 and $1.3 million for the three months
     ended March 31, 2014 and 2013, while accretion on acquired Fidelity interest bearing liabilities
     was $0.2 and $0.5 million for the three months ended March 31, 2014 and 2013, respectively.
(2) Average yields on available-for-sale securities are calculated based on amortized cost.
(3) Taxable equivalent basis is calculated on tax-exempt securities using a rate of 35% for each period presented.


WESBANCO, INC.
                 
Consolidated Selected Financial Highlights
               
 Page 8
(unaudited, dollars in thousands, except shares and per share amounts)
               
       
Quarter Ended
Statement of Income
Mar. 31,
 
Dec. 31,
 
Sep. 30,
 
June 30,
 
Mar. 31,
Interest income
2014
 
2013
 
2013
 
2013
 
2013
 
Loans, including fees
 $    42,746
 
 $                 43,617
 
 $              43,678
 
 $                43,753
 
 $              44,276
 
Interest and dividends on securities:
                 
   
Taxable
                  7,225
 
                       7,178
 
                    7,226
 
                      7,357
 
                    7,433
   
Tax-exempt
                  3,385
 
                      3,380
 
                    3,355
 
                      3,264
 
                     3,127
     
Total interest and dividends on securities
                  10,610
 
                     10,558
 
                    10,581
 
                      10,621
 
                   10,560
 
Other interest income
                       101
 
                            82
 
                          58
 
                            50
 
                          56
          Total interest and dividend income
                53,457
 
                    54,257
 
                   54,317
 
                    54,424
 
                  54,892
Interest expense
                 
 
Interest bearing demand deposits
                     374
 
                          380
 
                        369
 
                          365
 
                         301
 
Money market deposits
                     440
 
                          440
 
                        345
 
                          338
 
                        339
 
Savings deposits
                      130
 
                           130
 
                         128
 
                           127
 
                          141
 
Certificates of deposit
                  3,630
 
                      4,383
 
                    5,597
 
                       5,881
 
                     6,148
     
Total interest expense on deposits
                  4,574
 
                      5,333
 
                    6,439
 
                        6,711
 
                    6,929
 
Federal Home Loan Bank borrowings
                       211
 
                           251
 
                         291
 
                          289
 
                         319
 
Other short-term borrowings
                     557
 
                          625
 
                         651
 
                          627
 
                        623
 
Junior subordinated debt owed to unconsolidated subsidiary trusts
                     790
 
                           810
 
                        805
 
                          808
 
                        893
     
Total interest expense
                   6,132
 
                       7,019
 
                     8,186
 
                      8,435
 
                    8,764
Net interest income
                47,325
 
                    47,238
 
                    46,131
 
                    45,989
 
                   46,128
 
Provision for credit losses
                   2,199
 
                       3,144
 
                     2,819
 
                        1,021
 
                     2,102
Net interest income after provision for credit losses
                 45,126
 
                    44,094
 
                   43,312
 
                    44,968
 
                  44,026
Non-interest income
                 
 
Trust fees
5,648
 
4,883
 
4,854
 
4,823
 
5,018
 
Service charges on deposits
3,860
 
4,616
 
4,650
 
4,462
 
4,197
 
Electronic banking fees
3,013
 
3,012
 
3,124
 
3,195
 
2,866
 
Net securities brokerage revenue
1,829
 
1,604
 
1,506
 
1,641
 
1,497
 
Bank-owned life insurance
875
 
925
 
911
 
880
 
1,949
 
Net gains on sales of mortgage loans
154
 
456
 
745
 
701
 
712
 
Net securities gains / (losses)
10
 
(3)
 
(15)
 
686
 
16
 
Net gain / (loss) on other real estate owned and other assets
113
 
(144)
 
8
 
101
 
(46)
 
Other income
1,547
 
1,601
 
1,333
 
1,235
 
1,287
     
Total non-interest income
17,049
 
16,950
 
17,116
 
17,724
 
17,496
Non-interest expense
                 
 
Salaries and wages
16,467
 
17,352
 
16,480
 
15,772
 
15,826
 
Employee benefits
5,708
 
5,774
 
5,323
 
5,813
 
6,345
 
Net occupancy
3,491
 
2,866
 
2,921
 
2,830
 
3,192
 
Equipment
2,783
 
2,768
 
2,692
 
2,802
 
2,407
 
Marketing
1,003
 
1,159
 
1,585
 
1,624
 
805
 
FDIC insurance
877
 
919
 
916
 
919
 
971
 
Amortization of intangible assets
495
 
546
 
556
 
561
 
625
 
Restructuring and merger-related expense
                        -
 
                            45
 
                          36
 
                             51
 
                      1,178
 
Other operating expenses
9,271
 
9,314
 
9,500
 
9,127
 
9,398
     
Total non-interest expense
40,095
 
40,743
 
40,009
 
39,499
 
40,747
Income before provision for income taxes
                22,080
 
                     20,301
 
                   20,419
 
                     23,193
 
                  20,775
 
Provision for income taxes
                  5,659
 
                      4,948
 
                    4,884
 
                       6,176
 
                    4,754
Net Income
 $              16,421
 
 $                 15,353
 
 $               15,535
 
 $                  17,017
 
 $                16,021
                         
Taxable equivalent net interest income
 $            49,148
 
 $             49,058
 
 $           47,938
 
 $             47,747
 
 $            47,812
                         
Per common share data
                 
Net income per common share - basic
 $                 0.56
 
 $                   0.52
 
 $                 0.53
 
 $                   0.58
 
 $                 0.55
Net income per common share - diluted
 $                 0.56
 
 $                   0.52
 
 $                 0.53
 
 $                   0.58
 
 $                 0.55
Dividends declared
 $                 0.22
 
 $                   0.20
 
 $                 0.20
 
 $                   0.19
 
 $                 0.19
Book value (period end)
 $               26.05
 
 $                 25.59
 
 $               25.10
 
 $                 24.80
 
 $               24.80
Tangible book value (period end) (1)
 $               15.17
 
 $                 14.68
 
 $               14.25
 
 $                 13.91
 
 $               13.87
Average common shares outstanding - basic
29,182,183
 
29,300,463
 
29,325,128
 
29,245,201
 
29,211,321
Average common shares outstanding - diluted
29,262,680
 
29,387,485
 
29,412,458
 
29,308,806
 
29,268,483
Period end common shares outstanding
29,212,110
 
            29,175,236
 
          29,350,061
 
            29,282,412
 
           29,214,018
Full time equivalent employees
                   1,442
 
                       1,469
 
                     1,462
 
                       1,478
 
                     1,448
                         
                         
(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
 
       
Mar. 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
Mar. 31,
 
Asset quality data
 
2014
 
2013
 
2013
 
2013
 
2013
 
Non-performing assets:
                     
 
Troubled debt restructurings - accruing
 $         14,535
 
 $         14,861
 
 $         15,480
 
 $         19,269
 
 $         20,420
 
 
Non-accrual loans:
                     
   
Troubled debt restructurings
 
              7,406
 
              9,324
 
            12,920
 
            15,655
 
            17,106
 
   
Other non-accrual loans
 
            28,967
 
            27,309
 
            25,240
 
            27,414
 
            25,620
 
   
    Total non-accrual loans
 
            36,373
 
            36,633
 
            38,160
 
            43,069
 
            42,726
 
   
    Total non-performing loans
 
            50,908
 
            51,494
 
            53,640
 
            62,338
 
            63,146
 
 
Other real estate and repossessed assets
              5,382
 
              4,860
 
              5,184
 
              5,007
 
              5,147
 
   
Total non-performing assets
 
 $         56,290
 
 $         56,354
 
 $         58,824
 
 $         67,345
 
 $         68,293
 
                           
Past due loans (1):
                     
 
Loans past due 30-89 days
 
 $         14,650
 
 $         14,831
 
 $         15,611
 
 $         15,792
 
 $         14,507
 
 
Loans past due 90 days or more
 
              1,833
 
              2,591
 
              3,043
 
              3,594
 
              4,345
 
   
Total past due loans
 
 $         16,483
 
 $         17,422
 
 $         18,654
 
 $         19,386
 
 $         18,852
 
                           
Criticized and classified loans (2):
                     
 
Criticized loans
 
 $         73,925
 
 $         75,249
 
 $         76,442
 
 $         78,457
 
 $         84,146
 
 
Classified loans
 
            55,341
 
            60,335
 
            64,857
 
            80,621
 
            83,988
 
   
Total criticized and classified loans
 
 $       129,266
 
 $       135,584
 
 $       141,299
 
 $       159,078
 
 $       168,134
 
                           
Loans past due 30-89 days / total loans
 
                0.38
%
                0.38
%
                0.41
%
                0.42
%
                0.39
Loans past due 90 days or more / total loans
                0.05
 
                0.07
 
                0.08
 
                0.09
 
                0.12
 
Non-performing loans / total loans
 
                1.31
 
                1.32
 
                1.40
 
                1.64
 
                1.71
 
Non-performing assets/total loans, other
                     
 
real estate and repossessed assets
 
                1.45
 
                1.45
 
                1.53
 
                1.77
 
                1.85
 
Non-performing assets / total assets
 
                0.90
 
                0.92
 
                0.96
 
                1.11
 
                1.12
 
Criticized and classified loans / total loans
 
                3.33
 
                3.48
 
                3.68
 
                4.18
 
                4.56
 
                           
Allowance for loan losses
                     
Allowance for loan losses
 
 $         45,483
 
 $         47,368
 
 $         47,342
 
 $         50,381
 
 $         51,664
 
Provision for credit losses
 
              2,199
 
              3,144
 
              2,819
 
              1,021
 
              2,102
 
Net loan and deposit account overdraft charge-offs
              4,141
 
              2,887
 
              5,804
 
              2,433
 
              3,032
 
                           
Annualized net loan charge-offs /average loans
                0.43
 %
                0.30
 %
                0.60
 %
                0.26
 %
                0.34
Allowance for loan losses / portfolio loans
 
                1.17
 %
                1.22
 %
                1.23
 %
                1.33
 %
                1.40
%
Allowance for loan losses / non-performing loans
                0.89
x
                0.92
x
                0.88
x
                0.81
x
                0.82
 x
Allowance for loan losses / non-performing loans and
                   
 
loans past due
 
                0.67
x
                0.69
x
                0.65
x
                0.62
x
                0.63
 x
                           
                           
       
Quarter Ended
 
       
Mar. 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
Mar. 31,
 
       
2014
 
2013
 
2013
 
2013
 
2013
 
Capital ratios
                     
Tier I leverage capital
 
                9.45
%
                9.27
%
                9.27
%
                9.13
%
                8.92
Tier I risk-based capital
 
              13.30
 
              13.06
 
              13.08
 
              12.85
 
              12.88
 
Total risk-based capital
 
              14.40
 
              14.19
 
              14.23
 
              14.08
 
              14.13
 
Average shareholders' equity to average assets
              12.27
 
              12.06
 
              11.99
 
              12.05
 
              11.91
 
Tangible equity to tangible assets (3)
 
7.49
 
                7.35
 
                7.19
 
                7.07
 
                7.04
 
                           
                           
(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
 
       
Mar. 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
Mar. 31,
 
(unaudited, dollars in thousands, except shares and per share amounts)
2014
 
2013
 
2013
 
2013
 
2013
 
Return on average tangible equity:
                   
 
Net income (annualized)
 
 $              66,596
 
 $        60,911
 
 $       61,634
 
 $       68,256
 
 $       64,974
 
 
Plus: amortization of intangibles (annualized) (1)
                   1,305
 
             1,408
 
            1,434
 
            1,464
 
            1,647
 
 
Net income before amortization of intangibles (annualized)
                 67,901
 
           62,319
 
          63,068
 
          69,720
 
          66,621
 
                           
 
Average total shareholders' equity
               758,841
 
         745,136
 
        733,462
 
        731,935
 
        722,214
 
 
Less: average goodwill and other intangibles, net of def. tax liability
             (317,996)
 
       (318,333)
 
      (318,661)
 
      (318,971)
 
      (319,706)
 
 
Average tangible equity
 
               440,845
 
         426,803
 
        414,801
 
        412,964
 
        402,508
 
                           
Return on average tangible equity
15.40%
 
14.60%
 
15.20%
 
16.88%
 
16.55%
 
                           
       
Period End
 
       
Mar. 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
Mar. 31,
 
       
2014
 
2013
 
2013
 
2013
 
2013
 
Tangible book value:
                     
 
Total shareholders' equity
 
 $            761,117
 
 $      746,595
 
 $     736,688
 
 $     726,232
 
 $     724,409
 
 
Less:  goodwill and other intangible assets, net of def. tax liability
             (317,840)
 
       (318,161)
 
      (318,516)
 
      (318,828)
 
      (319,156)
 
 
Tangible equity
 
               443,277
 
         428,434
 
        418,172
 
        407,404
 
        405,253
 
                           
 
Common shares outstanding
          29,212,110
 
    29,175,236
 
   29,350,061
 
   29,282,412
 
   29,214,018
 
                           
Tangible book value
 
 $                15.17
 
 $          14.68
 
 $         14.25
 
 $         13.91
 
 $         13.87
 
                           
Tangible equity to tangible assets:
                   
 
Total shareholders' equity
 
 $            761,117
 
 $      746,595
 
 $     736,688
 
 $     726,232
 
 $     724,409
 
 
Less:  goodwill and other intangible assets, net of def. tax liability
             (317,840)
 
       (318,161)
 
      (318,516)
 
      (318,828)
 
      (319,156)
 
 
Tangible equity
 
               443,277
 
         428,434
 
        418,172
 
        407,404
 
        405,253
 
                           
 
Total assets
   
            6,237,577
 
      6,144,773
 
     6,138,360
 
     6,084,011
 
     6,075,485
 
 
Less:  goodwill and other intangible assets, net of def. tax liability
             (317,840)
 
       (318,161)
 
      (318,516)
 
      (318,828)
 
      (319,156)
 
 
Tangible assets
 
            5,919,737
 
      5,826,612
 
     5,819,844
 
     5,765,183
 
     5,756,329
 
                           
Tangible equity to tangible assets
7.49%
 
7.35%
 
7.19%
 
7.07%
 
7.04%
 
                           
Efficiency ratio:
                       
 
Non-interest expense
 
 $              40,095
 
 $        40,743
 
 $       40,009
 
 $       39,499
 
 $       40,747
 
 
Less: restructuring and merger-related expense
                         -
 
                (45)
 
               (36)
 
               (51)
 
          (1,178)
 
 
Non-interest expense excluding restructuring and merger-related expense
                 40,095
 
           40,698
 
          39,973
 
          39,448
 
          39,569
 
                           
 
Net interest income on a fully taxable equivalent basis
                 49,148
 
           49,058
 
          47,938
 
          47,747
 
          47,812
 
 
Non-interest income
 
                 17,049
 
           16,950
 
          17,116
 
          17,724
 
          17,496
 
 
Net interest income on a fully taxable equivalent basis plus non-interest income
                 66,197
 
           66,008
 
          65,054
 
          65,471
 
          65,308
 
 
Efficiency Ratio
 
60.57%
 
61.66%
 
61.45%
 
60.25%
 
60.59%
 
                           
(1) Tax effected at 35%.