Attached files
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| 8-K - FORM 8-K ON 4TH QTR 2014 EARNINGS RELEASE - WESBANCO INC | fin8k012615.htm |
NEWS FOR IMMEDIATE RELEASE
January 27, 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 10% Increase in Net Income for 2014
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 an increase in net income and related earnings per share for the three and twelve months ended December 31, 2014.
Net income increased 10% for the twelve months ended December 31, 2014, to $70.0 million compared to $63.9 million for 2013, while diluted earnings per share were $2.39, an increase of 10% compared to $2.18 per share for 2013. For the fourth quarter of 2014, net income was $16.5 million compared to $15.4 million for the fourth quarter of 2013, representing an 8% increase. Diluted earnings per share for the fourth quarter were $0.56, compared to $0.52 in the 2013 quarter, also representing an increase of 8%. The fourth quarter results included a pre-tax charge of $1.3 million relating to merger-related expenses. The increased net income improved the return on average assets to 1.12% in 2014 from 1.05% in 2013. Return on assets and return on tangible equity for WesBanco remain well above third quarter 2014 peer group averages, the most recent available.
On January 22, 2015, the shareholders of WesBanco, Inc. and ESB Financial Corporation (“ESB”) approved the merger of ESB with and into WesBanco. The acquisition is expected to close after receipt of all required regulatory approvals which is anticipated to be in the first quarter of 2015. ESB is a Pennsylvania thrift holding company, headquartered in Ellwood City, Lawrence County, with approximately $1.9 billion in assets. When the transaction is consummated, the combination of the two banking companies will create a bank with approximately $8.3 billion in total assets providing banking services through 143 branch locations and 130 ATM's in three states. The transaction will expand WesBanco's franchise in the Pittsburgh region of western Pennsylvania from 16 to 39 offices with approximately $2.5 billion in assets.
Mr. Clossin commented, “We are pleased with our success in 2014. The increase in net income reflects the strong performance across all of our lines of business. Loan growth accelerated in the fourth quarter to an annualized growth rate of 5.4% with actual net loan growth for 2014 of 4.9%. Net interest income increased for the sixth consecutive quarter as a result of loan growth and a reduction in our cost of funds through management of our deposit rate structures and other funding sources. Our wealth management units also continued significant growth in 2014. Credit quality improved throughout the year resulting in a 30% decrease in the provision for credit losses for the year. We continued our disciplined approach to expense control as non-interest expense was nearly unchanged in 2014. We also opened our new Southpointe branch in the southern Pittsburgh metropolitan area during the fourth quarter.
We have negotiated an acquisition that will significantly expand our presence in western Pennsylvania. Upon completion, we will become the 10th largest full service financial institution in western Pennsylvania. We look forward to working with the customers and employees of ESB.”
Financial Condition
Total assets at December 31, 2014 increased 2.5% or $151.8 million from December 31, 2013, primarily due to loan growth. Portfolio loans increased $191.8 million or 4.9% over last year and 1.4% in the fourth quarter of 2014 compared to the third quarter of this year. Loan growth was achieved through $1.4 billion in loan originations in 2014. Loan growth was driven by increased business activity, additional lending personnel, focused marketing efforts, an expanded presence in our larger urban markets, and continued improvement in loan origination processes. Deposits, excluding CDs, increased $192.8 million or 5.4% from December 31, 2013, with deposits for Marcellus and Utica shale gas contributing to the
Page 2
increase. All deposit types increased except certificates of deposit, which decreased $206.4 million due to lower rate offerings for maturing CDs.
WesBanco continues to maintain strong regulatory capital ratios. At December 31, 2014, tier I leverage was 9.88%, tier I risk-based capital was 13.76%, and total risk-based capital was 14.81%, all of which improved from December 31, 2013. Both consolidated and bank-level regulatory capital ratios are well above the applicable “well-capitalized” standards promulgated by bank regulators, as well as the recently finalized fully-implemented BASEL III capital standards. Total tangible equity to tangible assets (non-GAAP measure) was 7.88% at December 31, 2014, increasing from 7.35% at December 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, including TDRs, were $50.9 million or 1.25% of total loans at December 31, 2014, which represents a 1.2% decrease from $51.5 million or 1.32% of total loans at December 31, 2013. Criticized and classified loans were $81.1 million, or 1.99% of total loans at December 31, 2014. This represents a decrease of 40.2% over the last twelve months from $135.6 million or 3.48% of total loans at December 31, 2013.
Net charge-offs for 2014 were $9.3 million or 0.23% of average portfolio loans compared to $14.2 million or 0.38% in 2013. For the fourth quarter, net charge-offs were $2.3 million or 0.23% of average portfolio loans, compared to $2.9 million or 0.30% for the same quarter of 2013.
Lower charge-offs and continued improvement in delinquent, non-performing and classified and criticized loans resulted in a provision for credit losses of $6.4 million in 2014 compared to $9.1 million in 2013. For the fourth quarter of 2014, the provision was $1.9 million compared to $3.1 million in the same quarter of 2013. The allowance for loan losses represented 1.09% of total portfolio loans at December 31, 2014, compared to 1.22% at the end of 2013.
Net Interest Income
Net interest income increased $7.7 million or 4.2% in 2014 compared to 2013 due to a 3.1% increase in average earning assets, primarily through a 4.8% increase in average loan balances, and improvement in the net interest margin. Growth in net interest income has been very consistent. The fourth quarter of 2014 is the sixth consecutive quarter that net interest income has increased. The net interest margin improved by 3 basis points to 3.61% in 2014 compared to 3.58% in 2013. Accretion of various purchase accounting adjustments from a 2012 acquisition benefited the net interest margin throughout 2013 and 2014, but at a decreasing rate. Excluding this benefit from both years, the net interest margin increased by 8 basis points from 3.49% in 2013 to 3.57% in 2014. The improved net interest margin in the current low interest rate environment resulted partially from the aforementioned loan growth as the average rate on loans is higher than the average rate on securities. In addition, funding costs continued to decrease in 2014 as a result of a 9.4% increase in lower-cost demand, money market and savings account deposits, while higher-cost CDs decreased by 11.8%. The average rate on CDs declined by 43 basis points as higher rate CDs matured. In addition, a 29.2% reduction in higher-rate average other borrowings improved funding costs through the prepayment of a higher-rate $22.0 million repurchase agreement with another bank in the third quarter, and through maturities. For both the year and the fourth quarter, increased FHLB borrowings were generally short-term and did not significantly affect funding costs. Overall, average deposits increased by 2.6% in 2014 compared to 2013. For the fourth quarter, net interest income increased by $1.7 million or 3.7% compared to the fourth quarter of 2013, as average earning assets increased by 3.0% from a 5.1% increase in average loans, and the net interest margin increased by two basis points.
Non-Interest Income
For 2014, non-interest income decreased $0.8 million or 1.1% compared to 2013. The third quarter of 2014 included a $1.4 million charge related to the prepayment of the repurchase agreement. Non-interest income, excluding this charge, increased $0.6 million or 0.9% for the year. Trust fees increased 7.6% for the year as assets under management continued to increase from customer development initiatives and overall market improvements. Total trust assets were $3.8 billion at December 31, 2014, representing an increase of 4.1% from $3.7 billion at December 31, 2013. Net securities brokerage revenues increased $0.7 million or 10.8%, due to significant production increases from the addition of support and sales staff in several regions, as well as an increase in referrals and production from a licensed retail banker program. Service charges on deposits decreased 10.0% compared to 2013 due to lower overdraft fees that are affected by consistent increases
Page 3
in deposit levels and higher average deposits per account. Mortgage loan sale gains decreased 38.6% as the weak housing market reduced mortgage demand resulting in lower mortgage activity, which was also impacted by the new 2014 Qualified Mortgage and Ability-to-Repay rules, somewhat limiting the Bank’s product offerings. For the fourth quarter of 2014, non-interest income decreased 2.3% primarily due to a 12.7% decrease in service charges on deposits.
Non-Interest Expense
In 2014, revenue growth outpaced expense growth, as expense growth was minimal excluding merger-related expenses. As a result the efficiency ratio improved to 59.6% for 2014 from 61.0% in 2013. The fourth quarter 2014 ratio dropped to 60.4% compared to 61.7% last year. Non-interest expense increased $0.6 million or only 0.4% for 2014 compared to 2013. Salaries and wages increased 3.0%, due to routine annual adjustments to compensation, increased commissions on higher brokerage revenue and incentive and stock-related compensation granted in 2014, partially offset by lower average full time employees (“FTEs”). In 2014, employee benefits expense decreased 7.5%, primarily from decreased pension and other benefits expense, partially offset by higher health insurance costs. In addition, net occupancy and equipment expense increased due to higher weather-related expenses, the opening of three branches over the last five quarters and investment in internal infrastructure in the second half of last year. For the fourth quarter of 2014, non-interest expense increased by $1.2 million or 3.0% compared to the fourth quarter of 2013 primarily due to an increase in merger-related expense of $1.3 million. Excluding this increase, non-interest expense for the fourth quarter would have decreased slightly. In addition, fourth quarter salaries and wages decreased 3.7% compared to the fourth quarter of 2013 primarily due to lower incentive compensation and commission expense and lower average FTEs, while employee benefits expense decreased 9.4%. These decreases were offset by increased other expenses of $1.0 million primarily due to customer forgery losses recognized totaling $550,000, increased franchise taxes and other miscellaneous fees and costs, partially offset by reduced communication expenses.
Financial Results Conference Call
WesBanco, Inc. will host a conference call to discuss the Company's financial results for the fourth quarter of 2014 on Wednesday, January 28, 2015 at 11:00 a.m. E.S.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 Website or by registering at http://www.videonewswire.com/event.asp?id=101311. Access to the Webcast will begin approximately 15 minutes prior to the start of the call.
WesBanco is a multi-state bank holding company with total assets of approximately $6.3 billion, operating through 120 branch locations and 107 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”), including WesBanco’s Form 10-Q for the quarters ended March 31, 2014, June 30, 2014, and September 30, 2014, respectively, which are available at the SEC’s website, www.sec.gov or at WesBanco’s website, www.wesbanco.com. Investors are cautioned that forward-looking statements, which are not historical fact, involve risks and uncertainties, including those detailed in WesBanco’s most recent Annual Report on Form 10-K filed with the SEC under “Risk Factors” in Part I, Item 1A. Such statements are subject to important factors that could cause actual results to differ materially from those contemplated by such statements, including, without limitation, that the businesses of WesBanco and ESB may not be integrated successfully or such integration may take longer to accomplish than expected; the expected cost savings and any revenue synergies from the merger of WesBanco and ESB may not be fully realized within the expected timeframes; disruption from the merger of WesBanco and ESB may make it more difficult to maintain relationships with clients, associates, or suppliers; the effects of changing regional and national economic conditions; changes in interest rates, spreads on earning assets and interest-bearing liabilities, and associated interest rate sensitivity; sources of liquidity available to WesBanco and its related subsidiary operations; potential future credit losses and the credit risk of commercial, real estate, and consumer loan customers and their borrowing activities; actions of the Federal Reserve Board, the Federal Deposit Insurance Corporation, the SEC, the Financial Institution Regulatory Authority, the Municipal Securities Rulemaking Board, the Securities Investors Protection Corporation, and other regulatory bodies; potential legislative and federal and state regulatory actions and reform, including, without limitation, the impact of the implementation of the Dodd-Frank Act; adverse decisions of federal and state courts; fraud, scams and schemes of third parties; internet hacking; competitive conditions in the financial services industry; rapidly changing technology affecting financial services; marketability of debt instruments and corresponding impact on fair value adjustments; and/or other external developments materially impacting WesBanco’s operational and financial performance. WesBanco does not assume any duty to update forward-looking statements.
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WESBANCO, INC.
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||||||||||||||
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Consolidated Selected Financial Highlights
|
Page 4
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|||||||||||||
|
(unaudited, dollars in thousands, except shares and per share amounts)
|
||||||||||||||
|
For the Three Months Ended
|
For the Year Ended
|
|||||||||||||
|
STATEMENT OF INCOME
|
December 31,
|
December 31,
|
||||||||||||
|
Interest and dividend income
|
2014
|
2013
|
% Change
|
2014
|
2013
|
% Change
|
||||||||
|
Loans, including fees
|
$ 43,491
|
$ 43,617
|
(0.3)
|
$ 172,182
|
$ 175,323
|
(1.8)
|
||||||||
|
Interest and dividends on securities:
|
||||||||||||||
|
Taxable
|
7,181
|
7,178
|
0.0
|
29,233
|
29,193
|
0.1
|
||||||||
|
Tax-exempt
|
3,356
|
3,380
|
(0.7)
|
13,589
|
13,128
|
3.5
|
||||||||
|
Total interest and dividends on securities
|
10,537
|
10,558
|
(0.2)
|
42,822
|
42,321
|
1.2
|
||||||||
|
Other interest income
|
157
|
82
|
91.5
|
987
|
246
|
301.2
|
||||||||
|
Total interest and dividend income
|
54,185
|
54,257
|
(0.1)
|
215,991
|
217,890
|
(0.9)
|
||||||||
|
Interest expense
|
||||||||||||||
|
Interest bearing demand deposits
|
400
|
380
|
5.3
|
1,568
|
1,415
|
10.8
|
||||||||
|
Money market deposits
|
483
|
440
|
9.8
|
1,877
|
1,462
|
28.4
|
||||||||
|
Savings deposits
|
134
|
130
|
3.1
|
532
|
525
|
1.3
|
||||||||
|
Certificates of deposit
|
2,980
|
4,383
|
(32.0)
|
13,286
|
22,010
|
(39.6)
|
||||||||
|
Total interest expense on deposits
|
3,997
|
5,333
|
(25.1)
|
17,263
|
25,412
|
(32.1)
|
||||||||
|
Federal Home Loan Bank borrowings
|
318
|
251
|
26.7
|
968
|
1,151
|
(15.9)
|
||||||||
|
Other short-term borrowings
|
78
|
625
|
(87.5)
|
1,333
|
2,525
|
(47.2)
|
||||||||
|
Junior subordinated debt owed to unconsolidated subsidiary trusts
|
806
|
810
|
(0.5)
|
3,199
|
3,315
|
(3.5)
|
||||||||
|
Total interest expense
|
5,199
|
7,019
|
(25.9)
|
22,763
|
32,403
|
(29.8)
|
||||||||
|
Net interest income
|
48,986
|
47,238
|
3.7
|
193,228
|
185,487
|
4.2
|
||||||||
|
Provision for credit losses
|
1,880
|
3,144
|
(40.2)
|
6,405
|
9,086
|
(29.5)
|
||||||||
|
Net interest income after provision for credit losses
|
47,106
|
44,094
|
6.8
|
186,823
|
176,401
|
5.9
|
||||||||
|
Non-interest income
|
||||||||||||||
|
Trust fees
|
5,115
|
4,883
|
4.8
|
21,069
|
19,577
|
7.6
|
||||||||
|
Service charges on deposits
|
4,028
|
4,616
|
(12.7)
|
16,135
|
17,925
|
(10.0)
|
||||||||
|
Electronic banking fees
|
3,159
|
3,012
|
4.9
|
12,708
|
12,198
|
4.2
|
||||||||
|
Net securities brokerage revenue
|
1,389
|
1,604
|
(13.4)
|
6,922
|
6,248
|
10.8
|
||||||||
|
Bank-owned life insurance
|
1,037
|
925
|
12.1
|
4,614
|
4,664
|
(1.1)
|
||||||||
|
Net gains on sales of mortgage loans
|
426
|
456
|
(6.6)
|
1,604
|
2,614
|
(38.6)
|
||||||||
|
Net securities gains
|
147
|
(3)
|
5,000.0
|
903
|
684
|
32.0
|
||||||||
|
Net gain / (loss) on other real estate owned and other assets
|
212
|
(144)
|
247.2
|
(1,006)
|
(81)
|
(1,142.0)
|
||||||||
|
Other income
|
1,047
|
1,601
|
(34.6)
|
5,555
|
5,456
|
1.8
|
||||||||
|
Total non-interest income
|
16,560
|
16,950
|
(2.3)
|
68,504
|
69,285
|
(1.1)
|
||||||||
|
Non-interest expense
|
||||||||||||||
|
Salaries and wages
|
16,707
|
17,352
|
(3.7)
|
67,408
|
65,431
|
3.0
|
||||||||
|
Employee benefits
|
5,229
|
5,774
|
(9.4)
|
21,518
|
23,255
|
(7.5)
|
||||||||
|
Net occupancy
|
2,857
|
2,866
|
(0.3)
|
12,122
|
11,809
|
2.7
|
||||||||
|
Equipment
|
3,008
|
2,768
|
8.7
|
11,542
|
10,669
|
8.2
|
||||||||
|
Marketing
|
1,250
|
1,159
|
7.9
|
5,242
|
5,174
|
1.3
|
||||||||
|
FDIC insurance
|
833
|
919
|
(9.4)
|
3,376
|
3,725
|
(9.4)
|
||||||||
|
Amortization of intangible assets
|
466
|
546
|
(14.7)
|
1,920
|
2,288
|
(16.1)
|
||||||||
|
Restructuring and merger-related expense
|
1,309
|
45
|
2,808.9
|
1,309
|
1,310
|
(0.1)
|
||||||||
|
Other operating expenses
|
10,313
|
9,314
|
10.7
|
37,196
|
37,337
|
(0.4)
|
||||||||
|
Total non-interest expense
|
41,972
|
40,743
|
3.0
|
161,633
|
160,998
|
0.4
|
||||||||
|
Income before provision for income taxes
|
21,694
|
20,301
|
6.9
|
93,694
|
84,688
|
10.6
|
||||||||
|
Provision for income taxes
|
5,182
|
4,948
|
4.7
|
23,720
|
20,763
|
14.2
|
||||||||
|
Net Income
|
$ 16,512
|
$ 15,353
|
7.5
|
$ 69,974
|
$ 63,925
|
9.5
|
||||||||
|
Taxable equivalent net interest income
|
$ 50,793
|
$ 49,058
|
3.5
|
$ 200,545
|
$ 192,556
|
4.1
|
||||||||
|
Per common share data
|
||||||||||||||
|
Net income per common share - basic
|
$ 0.56
|
$ 0.52
|
7.7
|
$ 2.39
|
$ 2.18
|
9.6
|
||||||||
|
Net income per common share - diluted
|
0.56
|
0.52
|
7.7
|
2.39
|
2.18
|
9.6
|
||||||||
|
Dividends declared
|
0.22
|
0.20
|
10.0
|
0.88
|
0.78
|
12.8
|
||||||||
|
Book value (period end)
|
26.90
|
25.59
|
5.1
|
|||||||||||
|
Tangible book value (period end) (1)
|
16.09
|
14.68
|
9.6
|
|||||||||||
|
Average common shares outstanding - basic
|
29,291,440
|
29,300,463
|
(0.0)
|
29,249,499
|
29,270,922
|
(0.1)
|
||||||||
|
Average common shares outstanding - diluted
|
29,383,506
|
29,387,485
|
(0.0)
|
29,333,876
|
29,344,683
|
(0.0)
|
||||||||
|
Period end common shares outstanding
|
29,298,188
|
29,175,236
|
0.4
|
29,298,188
|
29,175,236
|
0.4
|
||||||||
|
(1) See non-GAAP financial measures for additional information relating to the calculation of this item.
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WESBANCO, INC.
|
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|
Consolidated Selected Financial Highlights
|
Page 5
|
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|
(unaudited, dollars in thousands)
|
||||||||||||||
|
Selected ratios
|
||||||||||||||
| For the Year Ended |
|
|||||||||||||
|
December 31,
|
||||||||||||||
|
2014
|
2013
|
% Change
|
||||||||||||
|
Return on average assets
|
1.12
|
%
|
1.05
|
%
|
6.67
|
%
|
||||||||
|
Return on average equity
|
8.97
|
8.72
|
2.87
|
|||||||||||
|
Return on average tangible equity (1)
|
15.39
|
15.79
|
(2.53)
|
|||||||||||
|
Yield on earning assets (2)
|
4.02
|
4.18
|
(3.83)
|
|||||||||||
|
Cost of interest bearing liabilities
|
0.52
|
0.73
|
(28.77)
|
|||||||||||
|
Net interest spread (2)
|
3.50
|
3.45
|
1.45
|
|||||||||||
|
Net interest margin (2)
|
3.61
|
3.58
|
0.84
|
|||||||||||
|
Efficiency (1) (2)
|
59.59
|
60.99
|
(2.30)
|
|||||||||||
|
Average loans to average deposits
|
76.89
|
75.28
|
2.14
|
|||||||||||
|
Annualized net loan charge-offs/average loans
|
0.23
|
0.38
|
(39.47)
|
|||||||||||
|
Effective income tax rate
|
25.32
|
24.52
|
3.26
|
|||||||||||
|
For the Quarter Ended
|
||||||||||||||
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
Mar. 31,
|
Dec. 31,
|
||||||||||
|
2014
|
2014
|
2014
|
2014
|
2013
|
||||||||||
|
Return on average assets
|
1.04
|
%
|
1.14
|
%
|
1.22
|
%
|
1.08
|
%
|
0.99
|
%
|
||||
|
Return on average equity
|
8.17
|
9.15
|
9.79
|
8.78
|
8.17
|
|||||||||
|
Return on average tangible equity (1)
|
13.77
|
15.59
|
16.90
|
15.40
|
14.60
|
|||||||||
|
Yield on earning assets (2)
|
3.96
|
3.98
|
4.06
|
4.08
|
4.09
|
|||||||||
|
Cost of interest bearing liabilities
|
0.47
|
0.51
|
0.52
|
0.56
|
0.63
|
|||||||||
|
Net interest spread (2)
|
3.49
|
3.47
|
3.54
|
3.52
|
3.46
|
|||||||||
|
Net interest margin (2)
|
3.60
|
3.58
|
3.64
|
3.63
|
3.58
|
|||||||||
|
Efficiency (1) (2)
|
60.37
|
58.51
|
58.93
|
60.57
|
61.66
|
|||||||||
|
Average loans to average deposits
|
79.07
|
77.52
|
75.40
|
75.52
|
75.79
|
|||||||||
|
Annualized net loan charge-offs/average loans
|
0.23
|
0.22
|
0.06
|
0.43
|
0.30
|
|||||||||
|
Effective income tax rate
|
23.89
|
25.93
|
25.67
|
25.63
|
24.37
|
|||||||||
|
Trust assets, market value at period end
|
$ 3,840,540
|
$ 3,783,774
|
$ 3,844,116
|
$ 3,752,142
|
$ 3,688,734
|
|||||||||
|
(1) See non-GAAP financial measures for additional information relating to the calculation of this item.
|
||||||||||||||
|
(2) The yield on earning assets, net interest margin, net interest spread and efficiency ratios are presented on a fully
|
||||||||||||||
|
taxable-equivalent (FTE) and annualized basis. The FTE basis adjusts for the tax benefit of income on certain tax-exempt
|
||||||||||||||
|
loans and investments. WesBanco believes this measure to be the preferred industry measurement of net interest income and
|
||||||||||||||
|
provides a relevant comparison between taxable and non-taxable amounts.
|
||||||||||||||
|
WESBANCO, INC.
|
||||||||||
|
Consolidated Selected Financial Highlights
|
Page 6
|
|||||||||
|
(unaudited, dollars in thousands, except shares)
|
% Change
|
|||||||||
|
Balance sheets
|
December 31,
|
September 30,
|
September 30, 2014
|
|||||||
|
Assets
|
2014
|
2013
|
% Change
|
2014
|
to December 31, 2014
|
|||||
|
Cash and due from banks
|
$ 85,597
|
$ 80,001
|
7.0
|
$ 73,715
|
16.1
|
|||||
|
Due from banks - interest bearing
|
8,405
|
15,550
|
(45.9)
|
2,704
|
210.8
|
|||||
|
Securities:
|
||||||||||
|
Available-for-sale, at fair value
|
917,424
|
934,386
|
(1.8)
|
959,553
|
(4.4)
|
|||||
|
Held-to-maturity (fair values of $619,617; $596,308 and $617,332, respectively)
|
593,670
|
598,520
|
(0.8)
|
594,860
|
(0.2)
|
|||||
|
Total securities
|
1,511,094
|
1,532,906
|
(1.4)
|
1,554,413
|
(2.8)
|
|||||
|
Loans held for sale
|
5,865
|
5,855
|
0.2
|
6,260
|
(6.3)
|
|||||
|
Portfolio loans:
|
||||||||||
|
Commercial real estate
|
1,945,460
|
1,912,919
|
1.7
|
1,973,336
|
(1.4)
|
|||||
|
Commercial and industrial
|
638,410
|
556,249
|
14.8
|
603,245
|
5.8
|
|||||
|
Residential real estate
|
928,770
|
890,804
|
4.3
|
909,531
|
2.1
|
|||||
|
Home equity
|
330,031
|
284,687
|
15.9
|
313,711
|
5.2
|
|||||
|
Consumer
|
244,095
|
250,258
|
(2.5)
|
231,881
|
5.3
|
|||||
|
Total portfolio loans, net of unearned income
|
4,086,766
|
3,894,917
|
4.9
|
4,031,704
|
1.4
|
|||||
|
Allowance for loan losses
|
(44,654)
|
(47,368)
|
5.7
|
(45,029)
|
0.8
|
|||||
|
Net portfolio loans
|
4,042,112
|
3,847,549
|
5.1
|
3,986,675
|
1.4
|
|||||
|
Premises and equipment, net
|
93,135
|
93,157
|
(0.0)
|
92,090
|
1.1
|
|||||
|
Accrued interest receivable
|
18,481
|
18,960
|
(2.5)
|
20,032
|
(7.7)
|
|||||
|
Goodwill and other intangible assets, net
|
319,506
|
321,426
|
(0.6)
|
319,973
|
(0.1)
|
|||||
|
Bank-owned life insurance
|
123,298
|
121,390
|
1.6
|
122,678
|
0.5
|
|||||
|
Other assets
|
89,072
|
107,979
|
(17.5)
|
99,954
|
(10.9)
|
|||||
|
Total Assets
|
$ 6,296,565
|
$ 6,144,773
|
2.5
|
$ 6,278,494
|
0.3
|
|||||
|
Liabilities
|
||||||||||
|
Deposits:
|
||||||||||
|
Non-interest bearing demand
|
$ 1,061,075
|
$ 960,814
|
10.4
|
$ 1,027,636
|
3.3
|
|||||
|
Interest bearing demand
|
885,037
|
857,761
|
3.2
|
897,827
|
(1.4)
|
|||||
|
Money market
|
954,957
|
942,768
|
1.3
|
993,211
|
(3.9)
|
|||||
|
Savings deposits
|
842,818
|
789,709
|
6.7
|
824,703
|
2.2
|
|||||
|
Certificates of deposit
|
1,305,096
|
1,511,478
|
(13.7)
|
1,358,308
|
(3.9)
|
|||||
|
Total deposits
|
5,048,983
|
5,062,530
|
(0.3)
|
5,101,685
|
(1.0)
|
|||||
|
Federal Home Loan Bank borrowings
|
223,126
|
39,508
|
464.8
|
123,374
|
80.9
|
|||||
|
Other short-term borrowings
|
80,690
|
150,536
|
(46.4)
|
117,637
|
(31.4)
|
|||||
|
Junior subordinated debt owed to unconsolidated subsidiary trusts
|
106,176
|
106,137
|
0.0
|
106,166
|
0.0
|
|||||
|
Total borrowings
|
409,992
|
296,181
|
38.4
|
347,177
|
18.1
|
|||||
|
Accrued interest payable
|
1,620
|
2,354
|
(31.2)
|
2,103
|
(23.0)
|
|||||
|
Other liabilities
|
47,780
|
37,113
|
28.7
|
38,745
|
23.3
|
|||||
|
Total Liabilities
|
5,508,375
|
5,398,178
|
2.0
|
5,489,710
|
0.3
|
|||||
|
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 issued;
|
||||||||||
|
29,298,188 shares; 29,175,236 shares and 29,283,675 shares outstanding, respectively
|
61,182
|
61,182
|
-
|
61,182
|
-
|
|||||
|
Capital surplus
|
244,661
|
244,974
|
(0.1)
|
244,358
|
0.1
|
|||||
|
Retained earnings
|
504,578
|
460,351
|
9.6
|
494,511
|
2.0
|
|||||
|
Treasury stock (69,323; 192,275 and 83,836 shares - at cost,
|
||||||||||
|
respectively)
|
(2,151)
|
(5,969)
|
64.0
|
(2,601)
|
17.3
|
|||||
|
Accumulated other comprehensive loss
|
(18,825)
|
(12,734)
|
(47.8)
|
(7,423)
|
(153.6)
|
|||||
|
Deferred benefits for directors
|
(1,255)
|
(1,209)
|
(3.8)
|
(1,243)
|
(1.0)
|
|||||
|
Total Shareholders' Equity
|
788,190
|
746,595
|
5.6
|
788,784
|
(0.1)
|
|||||
|
Total Liabilities and Shareholders' Equity
|
$ 6,296,565
|
$ 6,144,773
|
2.5
|
$ 6,278,494
|
0.3
|
|||||
|
WESBANCO, INC.
|
|||||||||||||||||
|
Consolidated Selected Financial Highlights
|
Page 7
|
||||||||||||||||
|
(unaudited, dollars in thousands)
|
|||||||||||||||||
|
Average balance sheet and
|
|||||||||||||||||
|
net interest margin analysis
|
Three Months Ended December 31,
|
For the Year Ended December 31,
|
|||||||||||||||
|
2014
|
2013
|
2014
|
2013
|
||||||||||||||
|
Average
|
Average
|
Average
|
Average
|
Average
|
Average
|
Average
|
Average
|
||||||||||
|
Assets
|
Balance
|
Rate
|
Balance
|
Rate
|
Balance
|
Rate
|
Balance
|
Rate
|
|||||||||
|
Due from banks - interest bearing
|
$ 8,042
|
0.30
|
%
|
$ 42,415
|
0.25
|
%
|
$ 25,713
|
0.23
|
%
|
$ 37,556
|
0.22
|
%
|
|||||
|
Loans, net of unearned income (1)
|
4,057,138
|
4.25
|
3,859,211
|
4.48
|
3,953,823
|
4.35
|
3,772,172
|
4.65
|
|||||||||
|
Securities: (2)
|
|||||||||||||||||
|
Taxable
|
1,141,069
|
2.52
|
1,137,977
|
2.52
|
1,158,738
|
2.52
|
1,175,865
|
2.48
|
|||||||||
|
Tax-exempt (3)
|
400,470
|
5.16
|
400,049
|
5.20
|
403,088
|
5.19
|
384,069
|
5.26
|
|||||||||
|
Total securities
|
1,541,539
|
3.20
|
1,538,026
|
3.23
|
1,561,826
|
3.21
|
1,559,934
|
3.17
|
|||||||||
|
Other earning assets (4)
|
9,135
|
6.61
|
12,200
|
1.84
|
11,726
|
7.91
|
15,165
|
1.07
|
|||||||||
|
Total earning assets (3)
|
5,615,854
|
3.96
|
%
|
5,451,852
|
4.09
|
%
|
5,553,088
|
4.02
|
%
|
5,384,827
|
4.18
|
%
|
|||||
|
Other assets
|
680,428
|
728,851
|
700,165
|
724,484
|
|||||||||||||
|
Total Assets
|
$ 6,296,282
|
$ 6,180,703
|
$ 6,253,253
|
$ 6,109,311
|
|||||||||||||
|
Liabilities and Shareholders' Equity
|
|||||||||||||||||
|
Interest bearing demand deposits
|
$ 912,352
|
0.17
|
%
|
$ 869,568
|
0.17
|
%
|
$ 899,887
|
0.17
|
%
|
$ 858,679
|
0.16
|
%
|
|||||
|
Money market accounts
|
979,343
|
0.20
|
931,309
|
0.19
|
972,496
|
0.19
|
867,473
|
0.17
|
|||||||||
|
Savings deposits
|
829,215
|
0.06
|
782,895
|
0.07
|
822,221
|
0.06
|
770,687
|
0.07
|
|||||||||
|
Certificates of deposit
|
1,335,421
|
0.89
|
1,556,305
|
1.12
|
1,418,459
|
0.94
|
1,607,918
|
1.37
|
|||||||||
|
Total interest bearing deposits
|
4,056,331
|
0.39
|
4,140,077
|
0.51
|
4,113,063
|
0.42
|
4,104,757
|
0.62
|
|||||||||
|
Federal Home Loan Bank borrowings
|
124,892
|
1.01
|
53,508
|
1.86
|
81,159
|
1.19
|
62,344
|
1.85
|
|||||||||
|
Other borrowings
|
90,152
|
0.35
|
132,191
|
1.88
|
101,291
|
1.32
|
142,992
|
1.77
|
|||||||||
|
Junior subordinated debt
|
106,171
|
3.01
|
106,132
|
3.03
|
106,156
|
3.01
|
107,665
|
3.08
|
|||||||||
|
Total interest bearing liabilities
|
4,377,546
|
0.47
|
%
|
4,431,908
|
0.63
|
%
|
4,401,669
|
0.52
|
%
|
4,417,758
|
0.73
|
%
|
|||||
|
Non-interest bearing demand deposits
|
1,074,797
|
951,809
|
1,029,370
|
905,921
|
|||||||||||||
|
Other liabilities
|
42,360
|
51,850
|
41,791
|
52,383
|
|||||||||||||
|
Shareholders' equity
|
801,579
|
745,136
|
780,423
|
733,249
|
|||||||||||||
|
Total Liabilities and Shareholders' Equity
|
$ 6,296,282
|
$ 6,180,703
|
$ 6,253,253
|
$ 6,109,311
|
|||||||||||||
|
Taxable equivalent net interest spread
|
3.49
|
%
|
3.46
|
%
|
3.50
|
%
|
3.45
|
%
|
|||||||||
|
Taxable equivalent net interest margin
|
3.60
|
%
|
3.58
|
%
|
3.61
|
%
|
3.58
|
%
|
|||||||||
|
(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 $1.0 million and $0.8 million for the three months ended December 31, 2014 and 2013,
|
|||||||||||||||||
|
respectively, and $3.5 million and $3.8 million for the year ended December 31, 2014 and 2013, respectively.
|
|||||||||||||||||
|
Additionally, loan accretion included in interest income on loans acquired from a 2012 acquisition was $0.3 million and $0.4 million for the
|
|||||||||||||||||
|
three months ended December 31, 2014 and 2013, respectively, and $1.4 million and $2.7 million for the year ended December 31, 2014 and 2013, respectively,
|
|||||||||||||||||
|
while accretion on interest bearing liabilities acquired from the 2012 acquisition was $0.1 million and $0.4 million for the three months ended
|
|||||||||||||||||
|
December 31, 2014 and 2013, respectively, and $0.7 million and $1.7 million for the year ended December 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.
|
|||||||||||||||||
|
(4) Interest income on other earning assets includes $0.5 million of interest on a federal income tax refund for the year ended December 31, 2014.
|
|||||||||||||||||
|
WESBANCO, INC.
|
||||||||||||
|
Consolidated Selected Financial Highlights
|
Page 8
|
|||||||||||
|
(unaudited, dollars in thousands, except shares and per share amounts)
|
||||||||||||
|
Quarter Ended
|
||||||||||||
|
Statement of Income
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
Mar. 31,
|
Dec. 31,
|
|||||||
|
Interest income
|
2014
|
2014
|
2014
|
2014
|
2013
|
|||||||
|
Loans, including fees
|
$ 43,491
|
$ 43,399
|
$ 42,546
|
$ 42,746
|
$ 43,617
|
|||||||
|
Interest and dividends on securities:
|
||||||||||||
|
Taxable
|
7,181
|
7,375
|
7,452
|
7,225
|
7,178
|
|||||||
|
Tax-exempt
|
3,356
|
3,413
|
3,435
|
3,385
|
3,380
|
|||||||
|
Total interest and dividends on securities
|
10,537
|
10,788
|
10,887
|
10,610
|
10,558
|
|||||||
|
Other interest income
|
157
|
116
|
611
|
101
|
82
|
|||||||
|
Total interest and dividend income
|
54,185
|
54,303
|
54,044
|
53,457
|
54,257
|
|||||||
|
Interest expense
|
||||||||||||
|
Interest bearing demand deposits
|
400
|
399
|
395
|
374
|
380
|
|||||||
|
Money market deposits
|
483
|
487
|
466
|
440
|
440
|
|||||||
|
Savings deposits
|
134
|
135
|
133
|
130
|
130
|
|||||||
|
Certificates of deposit
|
2,980
|
3,254
|
3,422
|
3,630
|
4,383
|
|||||||
|
Total interest expense on deposits
|
3,997
|
4,275
|
4,416
|
4,574
|
5,333
|
|||||||
|
Federal Home Loan Bank borrowings
|
318
|
264
|
175
|
211
|
251
|
|||||||
|
Other short-term borrowings
|
78
|
348
|
350
|
557
|
625
|
|||||||
|
Junior subordinated debt owed to unconsolidated subsidiary trusts
|
806
|
805
|
796
|
790
|
810
|
|||||||
|
Total interest expense
|
5,199
|
5,692
|
5,737
|
6,132
|
7,019
|
|||||||
|
Net interest income
|
48,986
|
48,611
|
48,307
|
47,325
|
47,238
|
|||||||
|
Provision for credit losses
|
1,880
|
1,478
|
849
|
2,199
|
3,144
|
|||||||
|
Net interest income after provision for credit losses
|
47,106
|
47,133
|
47,458
|
45,126
|
44,094
|
|||||||
|
Non-interest income
|
||||||||||||
|
Trust fees
|
5,115
|
5,096
|
5,210
|
5,648
|
4,883
|
|||||||
|
Service charges on deposits
|
4,028
|
4,170
|
4,078
|
3,860
|
4,616
|
|||||||
|
Electronic banking fees
|
3,159
|
3,268
|
3,267
|
3,013
|
3,012
|
|||||||
|
Net securities brokerage revenue
|
1,389
|
1,701
|
2,003
|
1,829
|
1,604
|
|||||||
|
Bank-owned life insurance
|
1,037
|
882
|
1,821
|
875
|
925
|
|||||||
|
Net gains on sales of mortgage loans
|
426
|
550
|
475
|
154
|
456
|
|||||||
|
Net securities gains / (losses)
|
147
|
581
|
165
|
10
|
(3)
|
|||||||
|
Net gain / (loss) on other real estate owned and other assets
|
212
|
(1,167)
|
(165)
|
113
|
(144)
|
|||||||
|
Other income
|
1,047
|
1,573
|
1,387
|
1,547
|
1,601
|
|||||||
|
Total non-interest income
|
16,560
|
16,654
|
18,241
|
17,049
|
16,950
|
|||||||
|
Non-interest expense
|
||||||||||||
|
Salaries and wages
|
16,707
|
17,331
|
16,904
|
16,467
|
17,352
|
|||||||
|
Employee benefits
|
5,229
|
5,051
|
5,529
|
5,708
|
5,774
|
|||||||
|
Net occupancy
|
2,857
|
2,916
|
2,857
|
3,491
|
2,866
|
|||||||
|
Equipment
|
3,008
|
2,837
|
2,914
|
2,783
|
2,768
|
|||||||
|
Marketing
|
1,250
|
1,276
|
1,713
|
1,003
|
1,159
|
|||||||
|
FDIC insurance
|
833
|
786
|
880
|
877
|
919
|
|||||||
|
Amortization of intangible assets
|
466
|
477
|
482
|
495
|
546
|
|||||||
|
Restructuring and merger-related expense
|
1,309
|
-
|
-
|
-
|
45
|
|||||||
|
Other operating expenses
|
10,313
|
8,589
|
9,025
|
9,271
|
9,314
|
|||||||
|
Total non-interest expense
|
41,972
|
39,263
|
40,304
|
40,095
|
40,743
|
|||||||
|
Income before provision for income taxes
|
21,694
|
24,524
|
25,395
|
22,080
|
20,301
|
|||||||
|
Provision for income taxes
|
5,182
|
6,358
|
6,520
|
5,659
|
4,948
|
|||||||
|
Net Income
|
$ 16,512
|
$ 18,166
|
$ 18,875
|
$ 16,421
|
$ 15,353
|
|||||||
|
Taxable equivalent net interest income
|
$ 50,793
|
$ 50,449
|
$ 50,157
|
$ 49,148
|
$ 49,058
|
|||||||
|
Per common share data
|
||||||||||||
|
Net income per common share - basic
|
$ 0.56
|
$ 0.62
|
$ 0.65
|
$ 0.56
|
$ 0.52
|
|||||||
|
Net income per common share - diluted
|
$ 0.56
|
$ 0.62
|
$ 0.64
|
$ 0.56
|
$ 0.52
|
|||||||
|
Dividends declared
|
$ 0.22
|
$ 0.22
|
$ 0.22
|
$ 0.22
|
$ 0.20
|
|||||||
|
Book value (period end)
|
$ 26.90
|
$ 26.94
|
$ 26.59
|
$ 26.05
|
$ 25.59
|
|||||||
|
Tangible book value (period end) (1)
|
$ 16.09
|
$ 16.10
|
$ 15.75
|
$ 15.17
|
$ 14.68
|
|||||||
|
Average common shares outstanding - basic
|
29,291,440
|
29,280,648
|
29,242,180
|
29,182,183
|
29,300,463
|
|||||||
|
Average common shares outstanding - diluted
|
29,383,506
|
29,360,880
|
29,321,927
|
29,262,680
|
29,387,485
|
|||||||
|
Period end common shares outstanding
|
29,298,188
|
29,283,675
|
29,278,925
|
29,212,110
|
29,175,236
|
|||||||
|
Full time equivalent employees
|
1,448
|
1,435
|
1,456
|
1,442
|
1,469
|
|||||||
|
(1) See non-GAAP financial measures for additional information relating to the calculation of this item.
|
||||||||||||
|
WESBANCO, INC.
|
||||||||||||
|
Consolidated Selected Financial Highlights
|
Page 9
|
|||||||||||
|
(unaudited, dollars in thousands)
|
||||||||||||
|
Quarter Ended
|
||||||||||||
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
Mar. 31,
|
Dec. 31,
|
||||||||
|
Asset quality data
|
2014
|
2014
|
2014
|
2014
|
2013
|
|||||||
|
Non-performing assets:
|
||||||||||||
|
Troubled debt restructurings - accruing
|
$ 12,066
|
$ 12,222
|
$ 13,513
|
$ 14,535
|
$ 14,861
|
|||||||
|
Non-accrual loans:
|
||||||||||||
|
Troubled debt restructurings
|
5,420
|
5,496
|
6,281
|
7,406
|
9,324
|
|||||||
|
Other non-accrual loans
|
33,398
|
31,275
|
29,837
|
28,967
|
27,309
|
|||||||
|
Total non-accrual loans
|
38,818
|
36,771
|
36,118
|
36,373
|
36,633
|
|||||||
|
Total non-performing loans
|
50,884
|
48,993
|
49,631
|
50,908
|
51,494
|
|||||||
|
Other real estate and repossessed assets
|
5,082
|
4,695
|
5,106
|
5,382
|
4,860
|
|||||||
|
Total non-performing assets
|
$ 55,966
|
$ 53,688
|
$ 54,737
|
$ 56,290
|
$ 56,354
|
|||||||
|
Past due loans (1):
|
||||||||||||
|
Loans past due 30-89 days
|
$ 9,347
|
$ 10,745
|
$ 10,138
|
$ 14,650
|
$ 14,831
|
|||||||
|
Loans past due 90 days or more
|
2,288
|
3,147
|
2,947
|
1,833
|
2,591
|
|||||||
|
Total past due loans
|
$ 11,635
|
$ 13,892
|
$ 13,085
|
$ 16,483
|
$ 17,422
|
|||||||
|
Criticized and classified loans (2):
|
||||||||||||
|
Criticized loans
|
$ 34,288
|
$ 39,553
|
$ 68,707
|
$ 73,925
|
$ 75,249
|
|||||||
|
Classified loans
|
46,851
|
48,004
|
52,760
|
55,341
|
60,335
|
|||||||
|
Total criticized and classified loans
|
$ 81,139
|
$ 87,557
|
$ 121,467
|
$ 129,266
|
$ 135,584
|
|||||||
|
Loans past due 30-89 days / total portfolio loans
|
0.23
|
%
|
0.27
|
%
|
0.26
|
%
|
0.38
|
%
|
0.38
|
%
|
||
|
Loans past due 90 days or more / total portfolio loans
|
0.06
|
0.08
|
0.07
|
0.05
|
0.07
|
|||||||
|
Non-performing loans / total portfolio loans
|
1.25
|
1.22
|
1.26
|
1.31
|
1.32
|
|||||||
|
Non-performing assets/total portfolio loans, other
|
||||||||||||
|
real estate and repossessed assets
|
1.37
|
1.33
|
1.39
|
1.45
|
1.45
|
|||||||
|
Non-performing assets / total assets
|
0.89
|
0.86
|
0.87
|
0.90
|
0.92
|
|||||||
|
Criticized and classified loans / total portfolio loans
|
1.99
|
2.17
|
3.08
|
3.33
|
3.48
|
|||||||
|
Allowance for loan losses
|
||||||||||||
|
Allowance for loan losses
|
$ 44,654
|
$ 45,029
|
$ 45,741
|
$ 45,483
|
$ 47,368
|
|||||||
|
Provision for credit losses
|
1,880
|
1,478
|
849
|
2,199
|
3,144
|
|||||||
|
Net loan and deposit account overdraft charge-offs
|
2,332
|
2,193
|
600
|
4,141
|
2,887
|
|||||||
|
Annualized net loan charge-offs /average loans
|
0.23
|
%
|
0.22
|
%
|
0.06
|
%
|
0.43
|
%
|
0.30
|
%
|
||
|
Allowance for loan losses / total portfolio loans
|
1.09
|
%
|
1.12
|
%
|
1.16
|
%
|
1.17
|
%
|
1.22
|
%
|
||
|
Allowance for loan losses / non-performing loans
|
0.88
|
x
|
0.92
|
x
|
0.92
|
x
|
0.89
|
x
|
0.92
|
x
|
||
|
Allowance for loan losses / non-performing loans and
|
||||||||||||
|
loans past due
|
0.71
|
x
|
0.72
|
x
|
0.73
|
x
|
0.67
|
x
|
0.69
|
x
|
||
|
Quarter Ended
|
||||||||||||
|
Dec. 31,
|
Sept. 30,
|
June 30,
|
Mar. 31,
|
Dec. 31,
|
||||||||
|
2014
|
2014
|
2014
|
2014
|
2013
|
||||||||
|
Capital ratios
|
||||||||||||
|
Tier I leverage capital
|
9.88
|
%
|
9.70
|
%
|
9.64
|
%
|
9.45
|
%
|
9.27
|
%
|
||
|
Tier I risk-based capital
|
13.76
|
13.56
|
13.46
|
13.29
|
13.06
|
|||||||
|
Total risk-based capital
|
14.81
|
14.62
|
14.56
|
14.40
|
14.19
|
|||||||
|
Average shareholders' equity to average assets
|
12.73
|
12.49
|
12.43
|
12.27
|
12.06
|
|||||||
|
Tangible equity to tangible assets (3)
|
7.88
|
7.91
|
7.74
|
7.49
|
7.35
|
|||||||
|
(1) Excludes non-performing loans.
|
||||||||||||
|
(2) Criticized and classified loans may include loans that are also reported as non-performing or past due.
|
||||||||||||
|
(3) See non-GAAP financial measures for additional information relating to the calculation of this ratio.
|
||||||||||||
|
NON-GAAP FINANCIAL MEASURES
|
Page 10
|
||||||||||||
|
The following non-GAAP financial measures used by WesBanco provide information useful to investors in understanding WesBanco’s operating performance and trends, and facilitate comparisons with the performance of WesBanco’s peers. The following tables summarize the non-GAAP financial measures derived from amounts reported in WesBanco’s financial statements.
|
|||||||||||||
|
Three Months Ended
|
Year to Date
|
||||||||||||
| (unaudited, dollars in thousands, |
Dec. 31,
|
Sept. 30,
|
June 30,
|
Mar. 31,
|
Dec. 31,
|
Dec. 31,
|
|||||||
|
except shares and per share amounts)
|
2014
|
2014
|
2014
|
2014
|
2013
|
2014
|
2013
|
||||||
|
Return on average tangible equity:
|
|||||||||||||
|
Net income (annualized)
|
$ 65,510
|
$ 72,072
|
$ 75,708
|
$ 66,596
|
$ 60,911
|
$ 69,974
|
$ 63,925
|
||||||
|
Plus: amortization of intangibles (annualized) (1)
|
1,202
|
1,230
|
1,256
|
1,305
|
1,408
|
1,248
|
1,487
|
||||||
|
Net income before amortization of intangibles (annualized)
|
66,712
|
73,302
|
76,964
|
67,901
|
62,319
|
71,222
|
65,412
|
||||||
|
Average total shareholders' equity
|
801,579
|
787,672
|
773,052
|
758,841
|
745,136
|
780,423
|
733,249
|
||||||
|
Less: average goodwill and other intangibles, net of def. tax liability
|
(317,061)
|
(317,368)
|
(317,679)
|
(317,996)
|
(318,333)
|
(317,523)
|
(318,913)
|
||||||
|
Average tangible equity
|
484,518
|
470,304
|
455,373
|
440,845
|
426,803
|
462,900
|
414,336
|
||||||
|
Return on average tangible equity
|
13.77%
|
15.59%
|
16.90%
|
15.40%
|
14.60%
|
15.39%
|
15.79%
|
||||||
|
Efficiency ratio:
|
|||||||||||||
|
Non-interest expense
|
$ 41,972
|
$ 39,263
|
$ 40,304
|
$ 40,095
|
$ 40,743
|
$ 161,633
|
$ 160,998
|
||||||
|
Less: restructuring and merger-related expense
|
(1,309)
|
-
|
-
|
-
|
(45)
|
(1,309)
|
(1,310)
|
||||||
|
Non-interest expense excluding restructuring and merger-related expense
|
40,663
|
39,263
|
40,304
|
40,095
|
40,698
|
160,324
|
159,688
|
||||||
|
Net interest income on a fully taxable equivalent basis
|
50,793
|
50,449
|
50,157
|
49,148
|
49,058
|
200,545
|
192,556
|
||||||
|
Non-interest income
|
16,560
|
16,654
|
18,241
|
17,049
|
16,950
|
68,504
|
69,285
|
||||||
|
Net interest income on a fully taxable equivalent basis plus non-interest income
|
67,353
|
67,103
|
68,398
|
66,197
|
66,008
|
269,049
|
261,841
|
||||||
| Efficiency Ratio |
60.37%
|
58.51%
|
58.93%
|
60.57%
|
61.66%
|
59.59%
|
60.99%
|
||||||
|
Period End
|
|||||||||||||
|
Dec. 31,
|
Sept. 30, |
|
June 30, |
|
Mar. 31, |
|
Dec. 31, |
|
|||||
|
2014
|
2014
|
2014
|
2014
|
2013
|
|||||||||
|
Tangible book value:
|
|||||||||||||
|
Total shareholders' equity
|
$ 788,190
|
$ 788,784
|
$ 778,625
|
$ 761,117
|
$ 746,595
|
||||||||
|
Less: goodwill and other intangible assets, net of def. tax liability
|
(316,914)
|
(317,217)
|
(317,527)
|
(317,840)
|
(318,161)
|
||||||||
|
Tangible equity
|
471,276
|
471,567
|
461,098
|
443,277
|
428,434
|
||||||||
|
Common shares outstanding
|
29,298,188
|
29,283,675
|
29,278,925
|
29,212,110
|
29,175,236
|
||||||||
|
Tangible book value
|
$ 16.09
|
$ 16.10
|
$ 15.75
|
$ 15.17
|
$ 14.68
|
||||||||
|
Tangible equity to tangible assets:
|
|||||||||||||
|
Total shareholders' equity
|
$ 788,190
|
$ 788,784
|
$ 778,625
|
$ 761,117
|
$ 746,595
|
||||||||
|
Less: goodwill and other intangible assets, net of def. tax liability
|
(316,914)
|
(317,217)
|
(317,527)
|
(317,840)
|
(318,161)
|
||||||||
|
Tangible equity
|
471,276
|
471,567
|
461,098
|
443,277
|
428,434
|
||||||||
|
Total assets
|
6,296,565
|
6,278,494
|
6,277,020
|
6,237,577
|
6,144,773
|
||||||||
|
Less: goodwill and other intangible assets, net of def. tax liability
|
(316,914)
|
(317,217)
|
(317,527)
|
(317,840)
|
(318,161)
|
||||||||
|
Tangible assets
|
5,979,651
|
5,961,277
|
5,959,493
|
5,919,737
|
5,826,612
|
||||||||
|
Tangible equity to tangible assets
|
7.88%
|
7.91%
|
7.74%
|
7.49%
|
7.35%
|
||||||||
(1) Tax effected at 35%