0000203596-15-000075.txt : 20151020 0000203596-15-000075.hdr.sgml : 20151020 20151020161624 ACCESSION NUMBER: 0000203596-15-000075 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20151020 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20151020 DATE AS OF CHANGE: 20151020 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WESBANCO INC CENTRAL INDEX KEY: 0000203596 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 550571723 STATE OF INCORPORATION: WV FISCAL YEAR END: 0224 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-08467 FILM NUMBER: 151166476 BUSINESS ADDRESS: STREET 1: 1 BANK PLAZA CITY: WHEELING STATE: WV ZIP: 26003 BUSINESS PHONE: 3042349000 MAIL ADDRESS: STREET 1: ONE BANK PLZ CITY: WHEELING STATE: WV ZIP: 26003 8-K 1 fin8k102015.htm FORM 8-K ON 3RD QTR 2015 EARNINGS RELEASE fin8k102015.htm



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, DC  20549


FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) October 20, 2015

logo

WesBanco, Inc.
 (Exact name of registrant as specified in its charter)


West Virginia
000-08467
55-0571723
(State or other jurisdiction
(Commission File Number)
(IRS Employer
of incorporation)
  
Identification No.)


1 Bank Plaza, Wheeling, WV
26003
(Address of principal executive offices)
(Zip Code)

 

Registrant's telephone number, including area code       (304) 234-9000

Former name or former address, if changed since last report  Not Applicable


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 


Item 2.02 Results of Operations and Financial Condition

WesBanco, Inc. issued a press release today announcing earnings for the three and nine months ended September 30, 2015.  The press release is attached as Exhibit 99.1 to this report.

WesBanco, Inc. will host a conference call to discuss the Company's financial results for the third quarter of 2015 on Wednesday, October 21, 2015 at 1:00 p.m. E.D.T.

Callers wishing to participate should access the call by dialing 1-888-347-6607 or 1-412-902-4290 for international callers.  The call may also be accessed via Webcast through the "Investor Relations" section of the Company's Web site or by registering at https://www.webcaster4.com/Webcast/Page/905/10946. Access to the Webcast will begin approximately 15 minutes prior to the start of the call.

A replay of the call will be available from 2:00 p.m. E.D.T. on the day of the call until 5:00 p.m. E.D.T. on Thursday, October 29, 2015.  The replay can be accessed by dialing 1-877-344-7529 or 1-412-317-0088 for international callers.  The replay access code is 10073893.  Access to the replay will also be available through the “Investor Relations” section of the Company’s web site.



Item 9.01 Financial Statements and Exhibits

d)  
Exhibits – 99.1 -  Press release dated October 20, 2015 announcing earnings for the three and nine months ended September 30, 2015.





SIGNATURE
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


 
WesBanco, Inc.
 
(Registrant)
   
Date:  October 20, 2015
  /s/ Robert H. Young
 
Robert H. Young
 
Executive Vice President and
 
Chief Financial Officer

 
 


 EX-99.1 2 ex991.htm 3RD QTR 2015 EARNINGS RELEASE ex991.htm

NEWS FOR IMMEDIATE RELEASE

October 20, 2015                                                                       For Further Information Contact:

Todd F. Clossin
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 Third Quarter 2015 Net Income

(Wheeling, WV)… Todd F. Clossin, President and Chief Executive Officer of WesBanco, Inc. (NASDAQ Global Market: WSBC), a Wheeling, West Virginia based multi-state bank holding company, today announced net income and related earnings per share for the three and nine months ended September 30, 2015.  Net income for the three months ended September 30, 2015 was $22.2 million, while diluted earnings per share were $0.58, compared to $18.2 million or $0.62 per diluted share for the third quarter of 2014.  Net income for the first nine months of 2015 was $57.8 million or $1.55 per diluted share compared to $53.5 million or $1.82 per diluted share for the same period of 2014.  For the nine month period ending September 30, 2015, net income excluding after-tax merger-related expenses of $7.2 million, increased 21.5% to $64.9 million (non-GAAP measure) compared to $53.5 million for the same period in 2014, while diluted earnings per share, excluding after-tax merger-related expenses, totaled $1.75 (non-GAAP measure), compared to $1.82 per share for the same 2014 period.


 
     
For the Three Months Ended September 30,
     For the Nine Months Ended September 30,
   
2015
  
2014
  
2015
  
2014
(unaudited, dollars in thousands,
except per share amounts)
  
Net Income
    
Diluted Earnings Per Share
    Net Income    
Diluted Earnings Per Share
 
Net Income
    
Diluted Earnings Per Share
    
Net Income
  
Diluted Earnings Per Share
Net income (Non-GAAP)(1)
  
 $       22,368
  
 $        0.58
  
 $       18,166
  
 $        0.62
  
 $       64,931
  
 $        1.75
  
 $       53,462
  
 $        1.82
Less: After tax merger-related expenses
  
(120)
  
              -
  
                   -
  
              -
  
(7,171)
  
         (0.20)
  
                   -
  
              -
Net income (GAAP)
  
 $       22,248
  
 $        0.58
  
 $       18,166
  
 $        0.62
  
 $       57,760
  
 $        1.55
  
 $       53,462
  
 $        1.82
(1) Non-GAAP net income excludes after-tax merger related expenses.  Non-GAAP measures are defined on page 11 under "Non-GAAP Financial Measures."

WesBanco’s results for the three and nine months ended September 30, 2015 included ESB Financial Corporation’s (“ESB”) results from February 10, 2015, the date of consummation of the merger.  ESB was a Pennsylvania thrift holding company, headquartered just to the northwest of Pittsburgh, PA, with approximately $2.0 billion in assets and 23 offices in southwestern PA including three in the Pittsburgh Metropolitan Statistical Area (“MSA”).

Mr. Clossin commented, “The third quarter reflects continued growth in loans and non-interest income against the headwind of net interest margin pressure.  Growth, efficiency and disciplined expense control contributed to the financial results.  Net income excluding after-tax merger-related expenses of $0.1 million increased 23.1% from the third quarter of last year.  Return on average assets is at 1.05% for the second consecutive quarter. Our efficiency ratio continues to stand in the mid 50’s. Annualized loan growth was 5.3% from December 31, 2014, exclusive of ESB, as total originations increased.  Most credit quality metrics improved in the third quarter, despite an increase in net charge-offs, as non-performing, criticized and classified loans all decreased as a percentage of loans.  Major components of non-interest income are also improving as service charges on deposits, electronic banking fees, securities brokerage revenue and gains on sale of mortgage loans all increased from the third quarter of last year and from the second quarter of 2015.”

Financial Condition

Total assets at September 30, 2015 increased 34.6% or $2.2 billion compared to September 30, 2014, with approximately $2.0 billion from the acquisition of ESB and $0.2 billion from organic growth exclusive of ESB.  Portfolio loans increased $918.9 million, with $701.0 million from the acquisition and $217.9 million from loan growth exclusive of ESB.  Organic loan growth from December 31, 2014, annualized, was 5.3%, primarily achieved through $1.3 billion in loan originations for the first nine months of 2015 compared to $1.0 billion last year. Loan growth occurred in all major loan categories, with approximately 30.0% of the growth in commercial and industrial loans.  Loan growth was driven by increased business activity, additional commercial and residential lending personnel in our urban markets, focused marketing efforts and continued improvement in loan origination processes. Deposits
Page 2
 
increased $1.1 billion compared to September 30, 2014, primarily due to the acquisition.  Non-interest bearing deposits, excluding $128.0 million from the acquisition, were up 12.1% over the last year. Excluding certificates of deposit, deposits increased $221.9 million or 5.9% from September 30, 2014, and also at an annualized rate of 7.9% for the first nine months of 2015, with deposits from Marcellus and Utica shale gas customers contributing to the increase.  Certificates of deposit, excluding $645.1 million from ESB, decreased $372.5 million from September 30, 2014 due to lower rate offerings for maturing CDs and customer preferences for other deposit types.

WesBanco continues to maintain strong regulatory capital ratios after the ESB acquisition and implementation of the new BASEL III capital standards.  At September 30, 2015, Tier I leverage was 9.39%, Tier I Risk-Based capital was 13.69%, and Total Risk-Based capital was 14.48%, all improved since the second quarter of this year.  Both consolidated and bank-level regulatory capital ratios are well above the applicable, revised “well-capitalized” standards promulgated by bank regulators, as well as the recently finalized BASEL III capital standards.  As required by BASEL III, a new ratio for 2015, Common Equity Tier 1 capital ratio (CET 1), was 11.93% for the third quarter of 2015, significantly above the requirement of 4.5%. Total tangible equity to tangible assets (non-GAAP measure) was 7.87% at September 30, 2015, decreasing from 7.91% at September 30, 2014, but nearly unchanged from pre-acquisition year-end’s 7.88% and improved over both of the first two quarters of 2015. Strong earnings and increased total capital have enabled WesBanco to increase the quarterly dividend rate, currently at $0.23 per share, eight times over the last five years, cumulatively representing a 64% increase.  The most recent increase was $0.01 per share in the first quarter of 2015.

Credit Quality

The provision for credit losses was $1.8 million in the third quarter of 2015 compared to $1.5 million in the same quarter of 2014.  Year-to-date, the provision was $5.8 million compared to $4.5 million for 2014. Net charge-offs for the first nine months of 2015 were $8.6 million or 0.24% of average portfolio loans compared to $6.9 million for the same period of 2014, also representing 0.24% of average portfolio loans.  The increase in charge-offs was primarily due to two non-energy industry-related commercial credits placed on nonaccrual and charged-down by $2.5 million. However, other credit metrics continue to improve overall.

Non-performing loans, including TDRs, as well as criticized and classified loans, improved as a percentage of total portfolio loans from their pre-acquisition levels in the fourth and third quarter of 2014. Total non-performing loans were 1.08% of total loans at September 30, 2015, decreasing from 1.22% of total loans at September 30, 2014. Criticized and classified loans were 1.65% of total loans, improving from 2.17% of total loans a year ago.  Past due loans at September 30, 2015 were 0.37% of total loans, increasing slightly from 0.35% at September 30, 2014.
 
 
The allowance for loan losses represented 0.84% of total portfolio loans at September 30, 2015.  If the acquired ESB loans (which were recorded at fair value at the date of acquisition) were excluded from the ratio, the allowance would approximate 0.98% of the adjusted loan total as compared to 1.12% at the end of the third quarter of 2014.

Net Interest Income

Net interest income increased $12.0 million or 24.7% in the third quarter of 2015 compared to the third quarter of 2014 due to a 33.3% increase in average earning assets, primarily through the acquisition, and through a 6.3% increase in average loan balances, exclusive of ESB, partially offset by a 22 basis point decrease in the net interest margin.  Year-to-date, net interest income increased $32.1 million or 22.3%.

The net interest margin decreased to 3.36% in the third quarter compared to 3.58% in the same quarter of 2014. The decrease in the net interest margin is primarily due to a 41 basis point decline in the average rate earned on securities due to lower yields on ESB’s retained securities portfolio and other purchased securities, while rates on loans decreased by 15 basis points due to repricing of existing loans and competitive pricing on new loans.  The lower rates were due to the low interest rate environment and were somewhat mitigated by a reduction in funding costs of 9 basis points.  In addition, the aforementioned loan growth improves asset yields as the average rate on loans is higher than the average rate on securities. Funding costs continued to decrease in 2015 as a result of a 31 basis point decrease in the average rate on CDs as higher-rate CDs matured. Overall, average deposits increased by 21.9% in the third quarter of 2015 compared to the same quarter of 2014 with a decrease in total rate of 10 basis points on interest bearing deposits.  To replace funding from runoff of higher cost CDs, increased average FHLB borrowings of intermediate terms in the first nine months of 2015 resulted in an increase in the third quarter cost of FHLB borrowings by 11 basis points compared to the third quarter of 2014.  The decline in the net interest margin is also due to asset and liability mix shifts post-ESB, with a greater percentage of lower-yielding investment securities and a greater percentage of CDs versus lower-cost deposit types. Compared to the second quarter of 2015, margin compression resulted primarily due to repricing of existing loans and competitive pricing on new loans. Year-to-date the net interest margin decreased to 3.44% from 3.62% in the same period of 2014, as a result of changes to individual balances and rates similar to the third quarter.

Non-Interest Income

For the third quarter of 2015, non-interest income increased $1.5 million or 9.2% compared to the third quarter of 2014. Service charges on deposits increased $0.3 million or 6.1% from the addition of ESB and an overall higher fee schedule.  Electronic banking
 
Page 3
 
fees increased $0.6 million or 17.8% from increases in transaction volume.  Net security brokerage revenue increased by $0.3 million or 17.3% through the addition of support and sales staff in several regions. Net gains on sales of mortgage loans increased $0.2 million or 41.6% from increases in originations and a larger percentage of originations being sold into the secondary market. Net losses on other assets improved by $1.1 million due to a $1.4 million charge in the third quarter of 2014 relating to the prepayment of a repurchase agreement with another bank.  These increases were partially offset by a decrease in net securities gains of $0.5 million and lower other service fee income, primarily swap fees.  For the first nine months of 2015, non-interest income increased by $2.5 million or 4.8%, reflecting similar trends as in the third quarter, while trust fees increased $0.7 million or 4.4% for the year-to-date period from higher fees and customer development initiatives.

Non-Interest Expense

In the third quarter of 2015, net revenue growth of 20.7% outpaced non-interest expense growth of 19.2%, excluding merger-related expenses of $0.2 million, compared to the third quarter of 2014.  As a result, the efficiency ratio (net of merger-related expenses) improved in the current quarter to 57.6% from 58.5% in the third quarter of 2014. Overall non-interest expense increased $7.7 million in the third quarter, principally from the acquisition which increased assets by $2.0 billion and added 23 offices to our branch network, and $0.2 million of merger-related expenses. Salaries and wages increased $2.5 million or 14.4%, due to an increase in average full-time equivalent employees from the merger, increased stock compensation costs and routine annual adjustments to compensation, partially offset by increased deferrals of compensation costs on new loan originations. Employee benefits expense increased $1.0 million or 19.3%, primarily from increased pension, health insurance, social security contributions and other benefit plan costs.  Net occupancy increased $0.6 million principally due to increased building-related costs including utilities, lease expense, and depreciation. Equipment costs increased $0.9 million related to continuous improvements in computer system infrastructure, and origination and customer support systems.  Amortization of intangible assets increased $0.3 million from additional ESB intangible assets, primarily related to core deposits.  Year-to-date through September 30, 2015, non-interest expense for the combined company increased by $16.3 million or 13.7%, excluding merger-related expenses, compared to the first nine months of 2014, reflecting factors similar to the three month period.

Financial Results Conference Call

WesBanco will also host a conference call to discuss the Company's financial results for the third quarter of 2015 on Wednesday, October 21, 2015 at 1:00 p.m. E.D.T.  Callers wishing to participate should access the call by dialing 1-888-347-6607 or 1-412-902-4290 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 https://www.webcaster4.com/Webcast/Page/905/10946. 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 $8.5 billion, operating through 141 branch locations and 129 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, 2014 and documents subsequently filed by WesBanco with the Securities and Exchange Commission (“SEC”), including WesBanco’s Form 10-Q for the quarters ended March 31 and June 30, 2015, 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
  
For the Nine Months Ended
STATEMENT OF INCOME
September 30,
  
September 30,
Interest and dividend income
2015
  
2014
  
% Change
  
2015
  
2014
  
% Change
 
Loans, including fees
 $             51,876
  
 $           43,399
  
               19.5
  
 $       151,913
  
 $         128,691
  
                  18.0
 
Interest and dividends on securities:
                      
   
Taxable
                10,251
  
                7,375
  
               39.0
  
             28,792
  
              22,051
  
                  30.6
   
Tax-exempt
                  4,535
  
                3,413
  
               32.9
  
             12,120
  
              10,234
  
                  18.4
     
Total interest and dividends on securities
                14,786
  
              10,788
  
               37.1
  
             40,912
  
              32,285
  
                  26.7
 
Other interest income
                      273
  
                   116
  
             135.3
  
               1,227
  
                   829
  
                  48.0
          Total interest and dividend income
                66,935
  
              54,303
  
               23.3
  
          194,052
  
            161,805
  
                  19.9
Interest expense
                      
 
Interest bearing demand deposits
                      517
  
                   399
  
               29.6
  
               1,425
  
                1,168
  
                  22.0
 
Money market deposits
                      485
  
                   487
  
                (0.4)
  
               1,430
  
                1,394
  
                    2.6
 
Savings deposits
                      165
  
                   135
  
               22.2
  
                  475
  
                   398
  
                  19.3
 
Certificates of deposit
                  2,662
  
                3,254
  
              (18.2)
  
               8,403
  
              10,305
  
                 (18.5)
     
Total interest expense on deposits
                  3,829
  
                4,275
  
              (10.4)
  
             11,733
  
              13,265
  
                 (11.5)
 
Federal Home Loan Bank borrowings
                  1,650
  
                   264
  
             525.0
  
               3,157
  
                   650
  
                385.7
 
Other short-term borrowings
                        89
  
                   348
  
              (74.4)
  
                  254
  
                1,255
  
                 (79.8)
 
Junior subordinated debt owed to unconsolidated subsidiary trusts
                      758
  
                   805
  
                (5.8)
  
               2,541
  
                2,392
  
                    6.2
     
Total interest expense
                  6,326
  
                5,692
  
               11.1
  
             17,685
  
              17,562
  
                    0.7
Net interest income
                60,609
  
              48,611
  
               24.7
  
          176,367
  
            144,243
  
                  22.3
 
Provision for credit losses
                  1,798
  
                1,478
  
               21.7
  
               5,768
  
                4,526
  
                  27.4
Net interest income after provision for credit losses
                58,811
  
              47,133
  
               24.8
  
          170,599
  
            139,717
  
                  22.1
Non-interest income
                      
 
Trust fees
5,127
  
5,096
  
                 0.6
  
16,656
  
15,954
  
                    4.4
 
Service charges on deposits
4,425
  
4,170
  
                 6.1
  
12,342
  
12,107
  
                    1.9
 
Electronic banking fees
3,849
  
3,268
  
               17.8
  
10,670
  
9,549
  
                  11.7
 
Net securities brokerage revenue
1,996
  
1,701
  
               17.3
  
5,897
  
5,533
  
                    6.6
 
Bank-owned life insurance
1,021
  
882
  
               15.8
  
3,264
  
3,577
  
                   (8.8)
 
Net gains on sales of mortgage loans
779
  
550
  
               41.6
  
1,459
  
1,178
  
                  23.9
 
Net securities gains
                        47
  
581
  
              (91.9)
  
69
  
756
  
                 (90.9)
 
Net (loss) / gain on other real estate owned and other assets
(18)
  
(1,167)
  
               98.5
  
167
  
(1,218)
  
                113.7
 
Other income
                      960
  
1,573
  
              (39.0)
  
               3,916
  
4,508
  
                 (13.1)
     
Total non-interest income
18,186
  
16,654
  
                 9.2
  
54,440
  
51,944
  
                    4.8
Non-interest expense
                      
 
Salaries and wages
19,832
  
17,331
  
               14.4
  
57,468
  
50,700
  
                  13.3
 
Employee benefits
6,028
  
5,051
  
               19.3
  
20,151
  
16,289
  
                  23.7
 
Net occupancy
3,533
  
2,916
  
               21.2
  
10,298
  
9,265
  
                  11.1
 
Equipment
3,731
  
2,837
  
               31.5
  
9,689
  
8,534
  
                  13.5
 
Marketing
1,514
  
1,276
  
               18.7
  
4,221
  
3,992
  
                    5.7
 
FDIC insurance
1,064
  
786
  
               35.4
  
3,014
  
2,543
  
                  18.5
 
Amortization of intangible assets
815
  
477
  
               70.9
  
2,325
  
1,454
  
                  59.9
 
Restructuring and merger-related expense
185
  
                      -
  
             100.0
  
             11,033
  
                      -
  
                100.0
 
Other operating expenses
                10,279
  
8,589
  
               19.7
  
             28,830
  
26,884
  
                    7.2
     
Total non-interest expense
46,981
  
39,263
  
               19.7
  
147,029
  
119,661
  
                  22.9
Income before provision for income taxes
                30,016
  
              24,524
  
               22.4
  
             78,010
  
              72,000
  
                    8.3
 
Provision for income taxes
                  7,768
  
                6,358
  
               22.2
  
             20,250
  
              18,538
  
                    9.2
Net Income
 $             22,248
  
 $           18,166
  
               22.5
  
 $         57,760
  
 $           53,462
  
                    8.0
                             
Taxable equivalent net interest income
 $            63,051
  
 $         50,449
  
               25.0
  
 $      182,893
  
 $      149,754
  
                  22.1
                             
Per common share data
                      
Net income per common share - basic
 $                 0.58
  
 $               0.62
  
                (6.5)
  
 $              1.55
  
 $               1.83
  
                 (15.3)
Net income per common share - diluted
                     0.58
  
                  0.62
  
                (6.5)
  
                 1.55
  
                  1.82
  
                 (14.8)
Dividends declared
                     0.23
  
                  0.22
  
                 4.5
  
                 0.69
  
                  0.66
  
                    4.5
Book value (period end)
            
               28.97
  
                26.94
  
                    7.5
Tangible book value (period end) (1)
            
               16.27
  
                16.10
  
                    1.1
Average common shares outstanding - basic
38,523,593
  
29,280,648
  
               31.6
  
37,144,783
  
29,235,364
  
                  27.1
Average common shares outstanding - diluted
38,556,995
  
       29,360,880
  
               31.3
  
37,204,114
  
       29,316,914
  
                  26.9
Period end common shares outstanding
        38,517,542
  
       29,283,675
  
               31.5
  
     38,517,542
  
       29,283,675
  
                  31.5
                             
(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 Nine Months Ended
          
   
September 30,
            
   
2015
  
2014
  
% Change
            
                         
Return on average assets
  
                 0.97
%
                 1.15
%
             (15.65)
%
          
Return on average equity
  
                 7.44
  
                 9.24
  
             (19.48)
            
Return on average tangible equity (1)
  
12.97
  
15.97
  
             (18.79)
            
Yield on earning assets (2)
  
                 3.78
  
                 4.04
  
               (6.44)
            
Cost of interest bearing liabilities
  
                 0.42
  
                 0.53
  
             (20.75)
            
Net interest spread (2)
  
                 3.36
  
                 3.51
  
               (4.27)
            
Net interest margin (2)
  
                 3.44
  
                 3.62
  
               (4.97)
            
Efficiency (1) (2)
  
               57.30
  
               59.33
  
               (3.42)
            
Average loans to average deposits
  
               77.85
  
               76.15
  
                 2.23
            
Annualized net loan charge-offs/average loans
 
            0.24
  
                 0.24
  
-
            
Effective income tax rate
  
               25.96
  
               25.75
  
                 0.82
            
                         
                         
                         
                         
   
For the Quarter Ended
    
   
Sept. 30,
  
June 30,
  
Mar. 31,
  
Dec. 31,
  
Sept. 30,
    
   
2015
  
2015
  
2015
  
2014
  
2014
    
                         
Return on average assets
  
1.05
%
1.05
%
0.75
%
1.04
%
1.14
%
  
Return on average equity
  
7.96
  
7.89
  
5.89
  
8.17
  
9.15
    
Return on average tangible equity (1)
  
14.58
  
13.67
  
10.62
  
13.77
  
15.59
    
Yield on earning assets (2)
  
3.70
  
3.76
  
3.93
  
3.96
  
3.98
    
Cost of interest bearing liabilities
  
0.42
  
0.41
  
0.43
  
0.47
  
0.51
    
Net interest spread (2)
  
3.28
  
3.35
  
3.50
  
3.49
  
3.47
    
Net interest margin (2)
  
3.36
  
3.44
  
3.59
  
3.60
  
3.58
    
Efficiency (1) (2)
  
57.60
  
56.11
  
58.24
  
60.37
  
58.51
    
Average loans to average deposits
  
78.75
  
76.52
  
77.98
  
79.07
  
77.52
    
Annualized net loan charge-offs/average loans
 
0.30
  
0.25
  
0.16
  
0.23
  
0.22
    
Effective income tax rate
  
25.88
  
26.90
  
24.59
  
23.89
  
25.93
    
Trust assets, market value at period end
  
 $     3,650,043
  
 $     3,843,792
  
 $     3,852,165
  
 $     3,840,540
  
 $     3,783,774
    
                         
(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
September 30,
    
Dec. 31,
December 31, 2014
Assets
  
2015
  
2014
  
% Change
2014
to September 30, 2015
Cash and due from banks
 $        90,831
  
 $        73,715
  
         23.2
 $              85,597
                              6.1
Due from banks - interest bearing
             2,144
  
             2,704
  
        (20.7)
                   8,405
                          (74.5)
Securities:
              
 
Available-for-sale, at fair value
      1,559,718
  
         959,553
  
         62.5
               917,424
                            70.0
  Held-to-maturity (fair values of $983,997; $617,332 and $619,617, respectively)
         957,352
  
         594,860
  
         60.9
               593,670
                            61.3
   
Total securities
      2,517,070
  
      1,554,413
  
         61.9
            1,511,094
                            66.6
Loans held for sale
           10,765
  
             6,260
  
         72.0
                   5,865
                            83.5
Portfolio loans:
              
 
Commercial real estate
      2,183,338
  
      1,973,336
  
         10.6
            1,945,460
                            12.2
 
Commercial and industrial
         725,730
  
         603,245
  
         20.3
               638,410
                            13.7
 
Residential real estate
      1,243,630
  
         909,531
  
         36.7
               928,770
                            33.9
 
Home equity
         403,387
  
         313,711
  
         28.6
               330,031
                            22.2
 
Consumer
         394,557
  
         231,881
  
         70.2
               244,095
                            61.6
Total portfolio loans, net of unearned income
      4,950,642
  
      4,031,704
  
         22.8
            4,086,766
                            21.1
Allowance for loan losses
          (41,624)
  
         (45,029)
  
           7.6
               (44,654)
                              6.8
   
Net portfolio loans
      4,909,018
  
      3,986,675
  
         23.1
            4,042,112
                            21.4
Premises and equipment, net
         111,699
  
           92,090
  
         21.3
                 93,135
                            19.9
Accrued interest receivable
           27,000
  
           20,032
  
         34.8
                 18,481
                            46.1
Goodwill and other intangible assets, net
         492,725
  
         319,973
  
         54.0
               319,506
                            54.2
Bank-owned life insurance
         155,894
  
         122,678
  
         27.1
               123,298
                            26.4
Other assets
         135,284
  
           99,954
  
         35.3
                 89,072
                            51.9
Total Assets
 $   8,452,430
  
 $   6,278,494
  
         34.6
 $         6,296,565
                            34.2
                     
Liabilities
              
Deposits:
                
 
Non-interest bearing demand
 $   1,280,329
  
 $   1,027,636
  
         24.6
 $         1,061,075
                            20.7
 
Interest bearing demand
      1,206,837
  
         897,827
  
         34.4
               885,037
                            36.4
 
Money market
      1,011,420
  
         993,211
  
           1.8
               954,957
                              5.9
 
Savings deposits
      1,064,426
  
         824,703
  
         29.1
               842,818
                            26.3
 
Certificates of deposit
      1,630,890
  
      1,358,308
  
         20.1
            1,305,096
                            25.0
   
Total deposits
      6,193,902
  
      5,101,685
  
         21.4
            5,048,983
                            22.7
Federal Home Loan Bank borrowings
         893,117
  
         123,374
  
       623.9
               223,126
                          300.3
Other short-term borrowings
           84,587
  
         117,637
  
        (28.1)
                 80,690
                              4.8
Junior subordinated debt owed to unconsolidated subsidiary trusts
         106,196
  
         106,166
  
           0.0
               106,176
                              0.0
   
Total borrowings
      1,083,900
  
         347,177
  
       212.2
               409,992
                          164.4
Accrued interest payable
             2,832
  
             2,103
  
         34.7
                   1,620
                            74.8
Other liabilities
           56,054
  
           38,745
  
         44.7
                 47,780
                            17.3
Total Liabilities
      7,336,688
  
      5,489,710
  
         33.6
            5,508,375
                            33.2
                     
Shareholders' Equity
              
Preferred stock, no par value; 1,000,000 shares authorized;
              
 
none outstanding
 -
  
                   -
  
             -
 -
                                -
Common stock, $2.0833 par value; 100,000,000 and 50,000,000 shares authorized in 2015
            
 
and 2014, respectively; 38,546,042; 29,367,511 and 29,367,511 shares
              
 
issued, respectively; 38,517,542; 29,283,675 and 29,298,188 shares
           80,304
  
           61,182
  
         31.3
                 61,182
                            31.3
 
outstanding, respectively
              
Capital surplus
         515,783
  
         244,358
  
       111.1
               244,661
                          110.8
Retained earnings
         535,777
  
         494,511
  
           8.3
               504,578
                              6.2
Treasury stock (28,500; 83,836 and 69,323 shares - at cost, respectively)
               (890)
  
           (2,601)
  
         65.8
                 (2,151)
                            58.6
Accumulated other comprehensive loss
          (14,446)
  
           (7,423)
  
        (94.6)
               (18,825)
                            23.3
Deferred benefits for directors
               (786)
  
           (1,243)
  
         36.8
                 (1,255)
                            37.4
Total Shareholders' Equity
      1,115,742
  
         788,784
  
         41.5
               788,190
                            41.6
Total Liabilities and Shareholders' Equity
 $   8,452,430
  
 $   6,278,494
  
         34.6
 $         6,296,565
                            34.2
                     




             
WESBANCO, INC.
        
Consolidated Selected Financial Highlights
      
Page 7
(unaudited, dollars in thousands, except shares)
        
Balance sheets
September 30,
  
June 30,
  
Assets
2015
  
2015
% Change
Cash and due from banks
 $          90,831
  
 $          88,336
2.8
Due from banks - interest bearing
               2,144
  
             20,402
(89.5)
Securities:
        
 
Available-for-sale, at fair value
         1,559,718
  
         1,594,658
(2.2)
   Held-to-maturity (fair values of $983,997 and 864,226, respectively)
           957,352
  
           848,416
12.8
   
Total securities
         2,517,070
  
         2,443,074
3.0
Loans held for sale
             10,765
  
             11,160
(3.5)
Portfolio Loans:
        
 
Commercial real estate
         2,183,338
  
         2,194,113
(0.5)
 
Commercial and industrial
           725,730
  
           733,478
(1.1)
 
Residential real estate
         1,243,630
  
         1,241,470
0.2
 
Home equity
           403,387
  
           379,740
6.2
 
Consumer
           394,557
  
           384,844
2.5
Total portfolio loans, net of unearned income
         4,950,642
  
         4,933,645
0.3
Allowance for loan losses
            (41,624)
  
           (43,419)
(4.1)
   
Net portfolio loans
         4,909,018
  
         4,890,226
0.4
Premises and equipment, net
           111,699
  
           111,692
0.0
Accrued interest receivable
             27,000
  
             24,739
9.1
Goodwill and other intangible assets, net
           492,725
  
           492,997
(0.1)
Bank-owned life insurance
           155,894
  
           154,980
0.6
Other assets
           135,284
  
           137,813
(1.8)
Total Assets
 $    8,452,430
  
 $   8,375,419
0.9
             
Liabilities
        
Deposits:
        
 
Non-interest bearing demand
 $      1,280,329
  
 $      1,257,932
1.8
 
Interest bearing demand
         1,206,837
  
         1,156,949
4.3
 
Money market
         1,011,420
  
           989,888
2.2
 
Savings deposits
         1,064,426
  
         1,075,711
(1.0)
 
Certificates of deposit
         1,630,890
  
         1,778,565
(8.3)
   
Total deposits
         6,193,902
  
         6,259,045
(1.0)
Federal Home Loan Bank borrowings
           893,117
  
           781,332
14.3
Other short-term borrowings
             84,587
  
             73,868
14.5
Junior subordinated debt owed to unconsolidated subsidiary trusts
           106,196
  
           106,196
0.0
   
Total borrowings
         1,083,900
  
           961,396
12.7
Accrued interest payable
               2,832
  
               2,542
11.4
Other liabilities
             56,054
  
             57,783
(3.0)
Total liabilities
         7,336,688
  
         7,280,766
0.8
             
Shareholders' Equity
        
Preferred stock, no par value; 1,000,000 shares authorized;
      
 
none outstanding
                   -
  
  -
0.0
Common stock, $2.0833 par value; 100,000,000 shares authorized;
    
 
38,546,042 and 38,546,042 shares issued, respectively;
      
 
38,517,542 and 38,519,170 shares outstanding, respectively
             80,304
  
             80,304
(0.0)
Capital surplus
           515,783
  
           516,990
(0.2)
Retained earnings
           535,777
  
           522,388
2.6
Treasury stock ( 28,500 and 26,872 shares - at cost)
                (890)
  
                (867)
(2.7)
Accumulated other comprehensive income (loss)
            (14,446)
  
           (21,702)
33.4
Deferred benefits for directors
                (786)
  
             (2,460)
68.0
Total Shareholders' Equity
         1,115,742
  
         1,094,653
1.9
Total Liabilities and Shareholders' Equity
 $    8,452,430
  
 $   8,375,419
0.9
             


WESBANCO, INC.
                                
Consolidated Selected Financial Highlights
                        
Page 8
  
(unaudited, dollars in thousands)
                                
Average balance sheet and
                                
net interest margin analysis
  
For the Three Months Ended September 30,
  
For the Nine Months Ended September 30,
   
2015
  
2014
  
2015
  
2014
   
Average
Average
    
Average
Average
    
Average
Average
    
Average
Average
  
Assets
  
Balance
Rate
    
Balance
Rate
    
Balance
Rate
    
Balance
Rate
  
Due from banks - interest bearing
  
 $          10,448
           0.19
%
  
 $          20,064
           0.24
 %
  
 $          16,754
           0.17
 %
 $          31,668
           0.23
%
Loans, net of unearned income (1)
  
        4,933,840
           4.17
    
        3,983,285
           4.32
    
        4,789,807
           4.24
    
        3,919,006
           4.39
  
Securities: (2)
                                
    Taxable
  
1,854,679
           2.21
    
1,175,750
           2.51
    
1,719,438
           2.23
    
1,164,693
           2.52
  
    Tax-exempt (3)
  
628,475
           4.44
    
405,338
           5.18
    
542,700
           4.58
    
403,970
           5.20
  
        Total securities
  
2,483,154
           2.78
    
1,581,088
           3.19
    
2,262,138
           2.80
    
1,568,663
           3.21
  
Other earning assets (4)
  
             34,712
           3.09
    
             15,337
           2.73
    
             24,953
           6.43
    
             12,600
           8.20
  
         Total earning assets (3)
  
        7,462,154
           3.70
%
  
        5,599,774
           3.98
 %
  
        7,093,652
           3.78
 %
        5,531,937
           4.04
%
Other assets
  
937,706
      
709,003
      
906,112
      
706,815
    
Total Assets
  
 $     8,399,860
      
 $     6,308,777
      
 $     7,999,764
      
 $     6,238,752
    
                                 
Liabilities and Shareholders' Equity
                                
Interest bearing demand deposits
  
 $     1,193,502
           0.17
%
  
 $        894,386
           0.18
 %
  
 $     1,127,608
           0.17
 %
 $        895,687
           0.17
%
Money market accounts
  
1,007,674
           0.19
    
989,935
           0.20
    
1,006,046
           0.19
    
970,189
           0.19
  
Savings deposits
  
1,070,179
           0.06
    
826,048
           0.06
    
1,035,882
           0.06
    
819,863
           0.06
  
Certificates of deposit
  
1,708,206
           0.62
    
1,391,740
           0.93
    
1,732,117
           0.65
    
1,446,443
           0.95
  
    Total interest bearing deposits
  
4,979,561
           0.31
    
        4,102,109
           0.41
    
4,901,653
           0.32
    
        4,132,182
           0.43
  
Federal Home Loan Bank borrowings
  
754,194
           0.87
    
           138,175
           0.76
    
493,788
           0.85
    
             66,421
           1.31
  
Other borrowings
  
103,461
           0.34
    
95,915
           1.44
    
105,573
           0.32
    
105,046
           1.60
  
Junior subordinated debt
  
106,196
           2.83
    
           106,161
           3.01
    
118,085
           2.88
    
           106,151
           3.01
  
      Total interest bearing liabilities
  
5,943,412
           0.42
%
  
4,442,360
           0.51
 %
  
5,619,099
           0.42
 %
4,409,800
           0.53
%
Non-interest bearing demand deposits
  
1,285,509
      
1,036,173
      
1,250,913
      
1,014,061
    
Other liabilities
  
62,323
      
42,572
      
92,258
      
41,597
    
Shareholders' equity
  
1,108,616
      
787,672
      
1,037,494
      
773,294
    
Total Liabilities and Shareholders' Equity
  
 $     8,399,860
      
 $     6,308,777
      
 $     7,999,764
      
 $     6,238,752
    
Taxable equivalent net interest spread
    
           3.28
%
    
           3.47
 %
    
           3.36
 %
  
           3.51
%
Taxable equivalent net interest margin
    
           3.36
%
    
           3.58
 %
    
           3.44
 %
  
           3.62
%
                                 
(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 $40 thousand and $0.8 million for the three months ended September 30, 2015 and 2014, respectively, and
     $0.8 million and $2.5 million for the nine months ended September 30, 2015 and 2014, respectively.
     Additionally, loan accretion included in interest income on loans acquired from prior acquisitions was $1.1 million and $0.4 million for the three months
     ended September 30, 2015 and 2014, respectively, and $3.0 million and $1.1 million for the nine months ended September 30, 2015 and 2014, respectively,
     while accretion on interest bearing liabilities acquired from the prior acquisitions was $0.8 and $0.2 million for the three months ended September 30, 2015
      and 2014, respectively, and $2.7 million and $0.6 million for the nine months ended September 30, 2015 and 2014, 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.
(4) Interest income on other earning assets includes $0.6 million of a special dividend from FHLB Pittsburgh for the nine months ended September 30, 2015
      and $0.5 million of interest on a federal income tax refund for the nine months ended September 30, 2014.
                                 


WESBANCO, INC.
                  
Consolidated Selected Financial Highlights
                
 Page 9
(unaudited, dollars in thousands, except shares and per share amounts)
                
       
Quarter Ended
Statement of Income
Sept. 30,
  
June 30,
  
Mar. 31,
  
Dec. 31,
  
Sept. 30,
Interest income
2015
  
2015
  
2015
  
2014
  
2014
 
Loans, including fees
 $    51,876
  
 $                 52,316
  
 $               47,713
  
 $                 43,491
  
 $              43,399
 
Interest and dividends on securities:
                  
   
Taxable
                  10,251
  
                     10,043
  
                    8,498
  
                        7,181
  
                    7,375
   
Tax-exempt
                  4,535
  
                      4,052
  
                    3,533
  
                      3,356
  
                     3,413
     
Total interest and dividends on securities
                 14,786
  
                     14,095
  
                    12,031
  
                     10,537
  
                   10,788
 
Other interest income
                     273
  
                           318
  
                        635
  
                           157
  
                          116
          Total interest and dividend income
                66,935
  
                    66,729
  
                  60,379
  
                     54,185
  
                  54,303
Interest expense
                  
 
Interest bearing demand deposits
                      517
  
                          485
  
                        422
  
                          400
  
                        399
 
Money market deposits
                     485
  
                          490
  
                        456
  
                          483
  
                        487
 
Savings deposits
                      165
  
                           163
  
                         148
  
                           134
  
                         135
 
Certificates of deposit
                  2,662
  
                      2,869
  
                    2,872
  
                      2,980
  
                    3,254
     
Total interest expense on deposits
                  3,829
  
                      4,007
  
                    3,898
  
                      3,997
  
                    4,275
 
Federal Home Loan Bank borrowings
                   1,650
  
                          949
  
                        557
  
                           318
  
                        264
 
Other short-term borrowings
                       89
  
                            92
  
                          75
  
                            78
  
                        348
 
Junior subordinated debt owed to unconsolidated subsidiary trusts
                     758
  
                          888
  
                        894
  
                          806
  
                        805
     
Total interest expense
                  6,326
  
                      5,936
  
                    5,424
  
                       5,199
  
                    5,692
Net interest income
                60,609
  
                    60,793
  
                  54,955
  
                    48,986
  
                    48,611
 
Provision for credit losses
                   1,798
  
                       2,681
  
                     1,289
  
                       1,880
  
                     1,478
Net interest income after provision for credit losses
                  58,811
  
                      58,112
  
                  53,666
  
                     47,106
  
                   47,133
Non-interest income
                  
 
Trust fees
5,127
  
5,476
  
6,053
  
5,115
  
5,096
 
Service charges on deposits
4,425
  
4,249
  
3,652
  
4,028
  
4,170
 
Electronic banking fees
3,849
  
3,496
  
3,325
  
3,159
  
3,268
 
Net securities brokerage revenue
1,996
  
1,842
  
2,059
  
1,389
  
1,701
 
Bank-owned life insurance
1,021
  
989
  
1,251
  
1,037
  
882
 
Net gains on sales of mortgage loans
779
  
407
  
272
  
426
  
550
 
Net securities gains
47
  
-
  
22
  
147
  
581
 
Net (loss) / gain on other real estate owned and other assets
(18)
  
152
  
122
  
212
  
(1,167)
 
Other income
960
  
1,461
  
1,434
  
1,047
  
1,573
     
Total non-interest income
18,186
  
18,072
  
18,190
  
16,560
  
16,654
Non-interest expense
                  
 
Salaries and wages
19,832
  
19,300
  
18,357
  
16,707
  
17,331
 
Employee benefits
6,028
  
6,807
  
7,316
  
5,229
  
5,051
 
Net occupancy
3,533
  
3,243
  
3,490
  
2,857
  
2,916
 
Equipment
3,731
  
3,017
  
2,973
  
3,008
  
2,837
 
Marketing
1,514
  
1,715
  
965
  
1,250
  
1,276
 
FDIC insurance
1,064
  
1,040
  
910
  
833
  
786
 
Amortization of intangible assets
815
  
944
  
566
  
466
  
477
 
Restructuring and merger-related expense
185
  
                         1,115
  
                    9,733
  
                       1,309
  
                            -
 
Other operating expenses
10,279
  
9,408
  
9,131
  
10,313
  
8,589
     
Total non-interest expense
46,981
  
46,589
  
53,441
  
41,972
  
39,263
Income before provision for income taxes
                 30,016
  
                    29,595
  
                    18,415
  
                     21,694
  
                  24,524
 
Provision for income taxes
                  7,768
  
                      7,962
  
                    4,528
  
                       5,182
  
                    6,358
Net Income
 $             22,248
  
 $                 21,633
  
 $               13,887
  
 $                  16,512
  
 $                18,166
                         
Taxable equivalent net interest income
 $            63,051
  
 $             62,975
  
 $           56,857
  
 $             50,793
  
 $           50,449
                         
Per common share data
                  
Net income per common share - basic
 $                 0.58
  
 $                     0.56
  
 $                   0.40
  
 $                     0.56
  
 $                   0.62
Net income per common share - diluted
 $                 0.58
  
 $                     0.56
  
 $                   0.40
  
 $                     0.56
  
 $                   0.62
Dividends declared
 $                 0.23
  
 $                     0.23
  
 $                   0.23
  
 $                     0.22
  
 $                   0.22
Book value (period end)
 $               28.97
  
$                   28.42
  
 $                 28.38
  
 $                   26.90
  
 $                 26.94
Tangible book value (period end) (1)
 $               16.27
  
 $                   15.72
  
 $                 15.67
  
 $                   16.09
  
 $                 16.10
Average common shares outstanding - basic
38,523,593
  
38,472,229
  
34,393,137
  
29,291,440
  
29,280,648
Average common shares outstanding - diluted
38,556,995
  
38,531,700
  
34,478,335
  
29,383,506
  
29,360,880
Period end common shares outstanding
38,517,542
  
             38,519,170
  
          38,449,812
  
            29,298,188
  
         29,283,675
Full time equivalent employees
                   1,637
  
                       1,667
  
                      1,713
  
                       1,448
  
                     1,435
                         
                         
(1) See non-GAAP financial measures for additional information relating to the calculation of this item.
                

                           
WESBANCO, INC.
                      
Consolidated Selected Financial Highlights
                
 Page 10
  
(unaudited, dollars in thousands)
                      
       
Quarter Ended
  
       
Sept. 30,
  
June 30,
  
Mar. 31,
  
Dec. 31,
  
Sept. 30,
  
Asset quality data
  
2015
  
2015
  
2015
  
2014
  
2014
  
Non-performing assets:
                      
 
Troubled debt restructurings - accruing
 $         12,030
  
 $         12,958
  
 $         17,330
  
 $         12,066
  
 $         12,222
  
 
Non-accrual loans:
                      
   
Troubled debt restructurings
  
            12,661
  
            13,140
  
              9,224
  
              5,420
  
              5,496
  
   
Other non-accrual loans
  
            28,633
  
            35,064
  
            32,150
  
            33,398
  
            31,275
  
   
    Total non-accrual loans
  
            41,294
  
            48,204
  
            41,374
  
            38,818
  
            36,771
  
   
    Total non-performing loans
  
            53,324
  
            61,162
  
            58,704
  
            50,884
  
            48,993
  
 
Other real estate and repossessed assets
              6,062
  
              6,168
  
              6,226
  
              5,082
  
              4,695
  
   
Total non-performing assets
  
 $         59,386
  
 $         67,330
  
 $         64,930
  
 $         55,966
  
 $         53,688
  
                           
Past due loans (1):
                      
 
Loans past due 30-89 days
  
 $         12,422
  
 $         10,320
  
 $         12,003
  
 $           9,347
  
 $         10,745
  
 
Loans past due 90 days or more
  
              6,079
  
              2,471
  
              1,031
  
              2,288
  
              3,147
  
   
Total past due loans
  
 $         18,501
  
 $         12,791
  
 $         13,034
  
 $         11,635
  
 $         13,892
  
                           
Criticized and classified loans (2):
                      
 
Criticized loans
  
 $         32,253
  
 $         28,280
  
 $         40,659
  
 $         34,288
  
 $         39,553
  
 
Classified loans
  
            49,204
  
            54,645
  
            52,295
  
            46,851
  
            48,004
  
   
Total criticized and classified loans
 $         81,457
  
 $         82,925
  
 $         92,954
  
 $         81,139
  
 $         87,557
  
                           
Loans past due 30-89 days / total portfolio loans
                0.25
%
                0.21
%
                0.25
%
                0.23
%
                0.27
%
Loans past due 90 days or more / total portfolio loans
                0.12
  
                0.05
  
                0.02
  
                0.06
  
                0.08
  
Non-performing loans / total portfolio loans
                1.08
  
                1.24
  
                1.20
  
                1.25
  
                1.22
  
Non-performing assets/total portfolio loans, other
                    
 
real estate and repossessed assets
  
                1.20
  
                1.36
  
                1.33
  
                1.37
  
                1.33
  
Non-performing assets / total assets
  
                0.70
  
                0.80
  
                0.79
  
                0.89
  
                0.86
  
Criticized and classified loans / total portfolio loans
                1.65
  
                1.68
  
                1.91
  
                1.99
  
                2.17
  
                           
Allowance for loan losses
                      
Allowance for loan losses
  
 $         41,624
  
 $         43,419
  
 $         44,173
  
 $         44,654
  
 $         45,029
  
Provision for credit losses
  
              1,798
  
              2,681
  
              1,289
  
              1,880
  
              1,478
  
Net loan and deposit account overdraft charge-offs
              3,768
  
              3,108
  
              1,747
  
              2,332
  
              2,193
  
                           
Annualized net loan charge-offs /average loans
                0.30
 %
                0.25
 %
                0.16
 %
                0.23
 %
                0.22
 %
Allowance for loan losses / total portfolio loans
                0.84
 %
                0.88
 %
                0.91
 %
                1.09
 %
                1.12
 %
Allowance for loan losses / non-performing loans
                0.78
x
                0.71
x
                0.75
x
                0.88
x
                0.92
x
Allowance for loan losses / non-performing loans and
                    
 
loans past due
  
                0.58
x
                0.59
x
                0.62
x
                0.71
x
                0.72
x
                           
                           
       
Quarter Ended
  
       
Sept. 30,
  
June 30,
  
Mar. 31,
  
Dec. 31,
  
Sept. 30,
  
       
2015
  
2015
  
2015
  
2014
  
2014
  
Capital ratios
                      
Tier I leverage capital
  
                9.39
%
                9.29
%
              10.62
%
                9.88
%
                9.70
%
Tier I risk-based capital
  
              13.69
  
              13.47
  
              14.09
  
              13.76
  
              13.56
  
Total risk-based capital
  
              14.48
  
              14.30
  
              14.92
  
              14.81
  
              14.62
  
Common equity tier 1 capital ratio (CET 1)
              11.93
  
              11.71
  
              11.49
          
Average shareholders' equity to average assets
              13.20
  
              13.29
  
              12.71
  
              12.73
  
              12.49
  
Tangible equity to tangible assets (3)
  
                7.87
  
                7.68
  
                7.78
  
                7.88
  
                7.91
  
                           
                           
(1) Excludes non-performing loans.
                      
(2) Criticized and classified loans may include loans that are also reported as non-performing or past due.
          
(3) See non-GAAP financial measures for additional information relating to the calculation of this ratio.
          
                           


                           
NON-GAAP FINANCIAL MEASURES
                      
Page 11
The following non-GAAP financial measures used by WesBanco provide information useful to investors in understanding WesBanco’s operating performance and trends, and facilitate comparisons with the performance of WesBanco’s peers. The following tables summarize the non-GAAP financial measures derived from amounts reported in WesBanco’s financial statements.
 
   
Three Months Ended
  
Year to Date
   
Sept. 30,
  
June 30,
  
Mar. 31,
  
Dec. 31,
  
Sept. 30,
  
Sept. 30,
(unaudited, dollars in thousands, except shares and per share amounts)
2015
  
2015
  
2015
  
2014
  
2014
  
2015
2014
Return on average tangible equity:
                        
 
Net income (annualized)
 $               88,267
  
 $           86,770
  
 $           56,319
  
 $           65,510
  
 $           72,072
  
 $       77,225
 $        71,478
 
Plus: amortization of intangibles (annualized) (1)
                    2,102
  
                2,462
  
                1,491
  
                1,202
  
                1,230
  
            2,021
             1,264
 
Net income before amortization of intangibles (annualized)
                  90,369
  
              89,232
  
              57,810
  
              66,712
  
              73,302
  
          79,246
           72,742
                           
 
Average total shareholders' equity
             1,108,616
  
         1,100,302
  
            956,836
  
            801,579
  
            787,672
  
     1,037,494
         773,294
 
Less: average goodwill and other intangibles, net of def. tax liability
              (488,726)
  
          (447,709)
  
          (412,454)
  
          (317,061)
  
          (317,368)
  
      (426,557)
       (317,678)
 
Average tangible equity
 $             619,890
  
 $         652,593
  
 $         544,382
  
 $         484,518
  
 $         470,304
  
 $     610,937
 $      455,616
                           
Return on average tangible equity
14.58%
  
13.67%
  
10.62%
  
13.77%
  
15.59%
  
12.97%
15.97%
                           
Efficiency ratio:
                        
 
Non-interest expense
 $               46,981
  
 $           46,589
  
 $           53,441
  
 $           41,972
  
 $           39,263
  
 $     147,029
 $      119,661
 
Less: restructuring and merger-related expense
                     (185)
  
              (1,115)
  
              (9,733)
  
              (1,309)
  
                      -
  
        (11,033)
                   -
 
Non-interest expense excluding restructuring and merger-related expense
                  46,796
  
              45,474
  
              43,708
  
              40,663
  
              39,263
  
        135,996
         119,661
                           
 
Net interest income on a fully taxable equivalent basis
                  63,051
  
              62,975
  
              56,857
  
              50,793
  
              50,449
  
        182,893
         149,754
 
Non-interest income
                  18,186
  
              18,072
  
              18,190
  
              16,560
  
              16,654
  
          54,440
           51,944
 
Net interest income on a fully taxable equivalent basis plus non-interest income
 $               81,237
  
 $           81,047
  
 $           75,047
  
 $           67,353
  
 $           67,103
  
 $     237,333
 $      201,698
 
Efficiency Ratio
57.60%
  
56.11%
  
58.24%
  
60.37%
  
58.51%
  
57.30%
59.33%
                           
Net Income, excluding after-tax merger-related expenses:
                  
 
Net income
 $               22,248
  
 $           21,633
  
 $           13,887
  
 $           16,512
  
 $           18,166
  
 $       57,760
 $        53,462
 
Add: After-tax merger-related expenses (1)
                       120
  
                   725
  
                6,326
  
                   851
  
                      -
  
            7,171
                   -
Net income, excluding after-tax merger-related expenses
 $               22,368
  
 $           22,358
  
 $           20,213
  
 $           17,363
  
 $           18,166
  
 $       64,931
 $        53,462
                           
Net Income, excluding after-tax merger-related expenses per diluted share:
          
 
Net income per diluted share
 $                   0.58
  
 $               0.56
  
 $               0.40
  
 $               0.56
  
 $               0.62
  
 $           1.55
 $            1.82
 
Add: After-tax merger-related expenses per diluted share (1)
                         -
  
                  0.02
  
                  0.19
  
                  0.03
  
                      -
  
              0.20
                   -
Net income, excluding after-tax merger-related expenses per diluted share
 $                   0.58
  
 $               0.58
  
 $               0.59
  
 $               0.59
  
 $               0.62
  
 $           1.75
 $            1.82
                           
                           
   
Period End
      
   
Sept. 30,
  
June 30,
  
Mar. 31,
  
Dec. 31,
  
Sept. 30,
    
   
2015
  
2015
  
2015
  
2014
  
2014
      
Tangible book value:
                        
 
Total shareholders' equity
 $          1,115,742
  
 $      1,094,653
  
 $      1,091,384
  
 $         788,190
  
 $         788,784
      
 
Less:  goodwill and other intangible assets, net of def. tax liability
              (488,893)
  
          (488,949)
  
          (488,911)
  
          (316,914)
  
          (317,217)
      
 
Tangible equity
                626,849
  
            605,704
  
            602,473
  
            471,276
  
            471,567
      
                           
 
Common shares outstanding
           38,517,542
  
       38,519,170
  
       38,449,812
  
       29,298,188
  
       29,283,675
      
                           
Tangible book value
 $                 16.27
  
 $             15.72
  
 $             15.67
  
 $             16.09
  
 $             16.10
      
                           
Tangible equity to tangible assets:
                        
 
Total shareholders' equity
 $          1,115,742
  
 $      1,094,653
  
 $      1,091,384
  
 $         788,190
  
 $         788,784
      
 
Less:  goodwill and other intangible assets, net of def. tax liability
              (488,893)
  
          (488,949)
  
          (488,911)
  
          (316,914)
  
          (317,217)
      
 
Tangible equity
                626,849
  
            605,704
  
            602,473
  
            471,276
  
            471,567
      
                           
 
Total assets
             8,452,430
  
         8,375,419
  
         8,233,279
  
         6,296,565
  
         6,278,494
      
 
Less:  goodwill and other intangible assets, net of def. tax liability
              (488,893)
  
          (488,949)
  
          (488,911)
  
          (316,914)
  
          (317,217)
      
 
Tangible assets
 $          7,963,537
  
 $      7,886,470
  
 $      7,744,368
  
 $      5,979,651
  
 $      5,961,277
      
                           
Tangible equity to tangible assets
7.87%
  
7.68%
  
7.78%
  
7.88%
  
7.91%
      


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