Investor Relation - Press Release

Investor Relation

Press Release

WesBanco Announces Third Quarter 2016 Net Income

Company Release - 10/25/2016 4:10 PM ET

WHEELING, W.Va., Oct. 25, 2016 /PRNewswire/ -- Todd F. Clossin, President and Chief Executive Officer of WesBanco, Inc. (NASDAQ: 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, 2016.  Net income for the nine months ended September 30, 2016 was $62.4 million or $1.61 per diluted share compared to $57.8 million or $1.55 per diluted share for the first nine months of 2015.  Net income for the three months ended September 30, 2016 was $17.4 million, while diluted earnings per share were $0.44, compared to $22.2 million or $0.58 per diluted share for the third quarter of 2015.  Excluding after-tax merger-related expenses (non-GAAP measure) for the nine months ended September 30, 2016, net income increased 6.7% to $69.3 million compared to $64.9 million for 2015, while diluted earnings per share totaled $1.79, compared to $1.75 per share for 2015.  Excluding after-tax merger-related expenses (non-GAAP measure), net income for the three months ended September 30, 2016 was $23.9 million, while diluted earnings per share were $0.60, compared to $22.4 million or $0.58 per diluted share for the third quarter of 2015.

 




For the Three Months Ended September 30, 


For the Nine Months Ended September 30,




2016


2015


2016


2015

(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)


$      23,859


$       0.60


$      22,368


$       0.58


$      69,292


$       1.79


$      64,931


$       1.75

Less: After tax merger-related expenses


(6,424)


(0.16)


(120)


-


(6,875)


(0.18)


(7,171)


(0.20)

Net income (GAAP)



$      17,435


$       0.44


$      22,248


$       0.58


$      62,417


$       1.61


$      57,760


$       1.55

(1)Non-GAAP net income excludes after-tax merger related expenses.  Non-GAAP measures are defined on page 12 under "Non-GAAP Financial Measures."

 

Financial results for Your Community Bankshares, Inc. ("YCB") were included in WesBanco's results after September 9, 2016, the date of the consummation of the merger.  The merger, which was announced on May 3, 2016, was approved by all appropriate regulatory agencies and the shareholders of YCB before the end of August, permitting the transaction to be closed in slightly over four months. YCB, with approximately $1.5 billion of assets, was headquartered in New Albany, Indiana and operated through 34 financial centers in Indiana and Kentucky.  The YCB merger meshes well with WesBanco's strategic growth plans and contiguous market expansion, and expands the WesBanco franchise into new attractive growth markets.  WesBanco now has $9.8 billion in total assets and provides banking services through 174 branch locations in five states.  WesBanco's results also include ESB Financial Corporation's ("ESB") results from February 10, 2015, the date of consummation of that merger.

"On September 9th, we welcomed the customers and employees of Your Community Bank into the WesBanco family," said Mr. Clossin.  "We are excited about the opportunities in Indiana and Kentucky as we continue to execute upon our strategic growth plans, and we look forward to formally unveiling the WesBanco brand over the November 4th weekend in our newest markets.  And, most importantly, we are eager to provide a broad array of products and services to our new retail and commercial customers while continuing to deliver the exceptional service to which they are accustomed."

Mr. Clossin added, "We are pleased with WesBanco's performance during the third quarter of 2016 as we continue to drive positive operating leverage in this extended lower for longer interest rate environment.  Our team is executing well against its growth strategies while continuing to maintain tight control over discretionary expenses as demonstrated by the 118 basis point improvement in our year-to-date efficiency ratio."

Financial Condition

Total assets at September 30, 2016 increased $1.4 billion or 16.1% compared to September 30, 2015 due to the acquisition of YCB.  Excluding the acquisition, total assets decreased slightly as management focused on controlling overall growth in order to delay the financial impact of crossing $10 billion in assets. Portfolio loans increased $1.3 billion or 26.0% over the last twelve months with $1.0 billion from the YCB acquisition and $273.0 million, or 5.5% from organic loan growth. Expanded market areas and additional commercial personnel in our core markets provided the organic loan growth, which occurred primarily in commercial real estate, commercial and industrial and home equity lending categories, and was achieved through $1.4 billion in loan originations in the first nine months of 2016.  Total business loan originations were up approximately 14% compared to the first nine months of 2015.

Total deposits increased $940.6 million or 15.2% during the last twelve months primarily due to the YCB acquisition. Organic total interest bearing and non-interest bearing demand deposits increased 8.9% and total organic deposits, excluding CDs, increased 1.4%.  Through WesBanco's planned funding strategy, certain higher cost or single service CDs were intentionally allowed to run off. Total borrowings increased $162.8 million or 15.0% over the last twelve months, with $122.8 million due to the acquisition, and $36.4 million associated with organic Federal Home Loan Bank ("FHLB") borrowings as part of our stated balance sheet re-mix strategy.

WesBanco continues to maintain strong regulatory capital ratios after the YCB acquisition and implementation of the BASEL III capital standards.  At September 30, 2016, Tier I leverage was 9.51%, Tier I Risk-Based capital was 12.95%, Total Risk-Based capital was 13.94% and the Common Equity Tier 1 capital ratio ("CET 1"), was 11.07%.  Both consolidated and bank-level regulatory capital ratios are well above the applicable "well-capitalized" standards promulgated by bank regulators, as well as the 2015-implemented BASEL III capital standards. Reflecting the impact of the YCB acquisition, these ratios were down somewhat from June 30 levels, however they were higher than originally anticipated at the time of the May merger announcement. Total tangible equity to tangible assets (non-GAAP measure) was 8.26% at September 30, 2016, down 30 basis points from June 30 due to the acquisition, but increasing from 7.87% at September 30, 2015, and 7.95% at December 31, 2015.  Strong earnings and increased total capital have enabled WesBanco to increase the quarterly dividend rate, currently at $0.24 per share, nine times over the last six years, cumulatively representing a 71% increase.  The most recent increase was $0.01 per share per quarter in the first quarter of 2016.

Credit Quality

While the provision for credit losses increased primarily due to loan growth, credit metrics continued to improve.  The provision for credit losses increased to $2.2 million in the third quarter of 2016, compared to $1.8 million in the third quarter of 2015, while year-to-date the provision increased to $6.4 million from $5.8 million in the same period of 2015. Net charge-offs as a percentage of average portfolio loans of 0.20% in the third quarter of 2016 decreased from 0.30% in the third quarter of 2015. For the first nine months of 2016, net charge-offs as a percentage of average portfolio loans of 0.14% decreased from 0.24% in the same 2015 period.

Non-performing loans (including TDRs), criticized and classified loans and past due loans all improved as a percentage of total portfolio loans from the third quarter of 2015. Total non-performing loans were 0.63% of total loans at September 30, 2016, decreasing from 1.08% of total loans in the third quarter of 2015. Criticized and classified loans were 1.42% of total loans, improving from 1.65% at the end of the 2015 third quarter. Past due loans at September 30, 2016 were 0.32% of total loans, improving from 0.37% at September 30, 2015.

The allowance for loan losses represented 0.69% of total portfolio loans at September 30, 2016 compared to 0.82% as of December 31, 2015.  If the acquired YCB and ESB loans (recorded at fair value at the date of acquisition of $1,714.1 million) were excluded from the ratio, the allowance would approximate 0.95% of the adjusted loan total at September 30, 2016 compared to 1.09% prior to the ESB acquisition.

Net Interest Income

Net interest income increased $1.4 million or 2.3% in the third quarter of 2016 compared to the same quarter of 2015 due to a 10.2% increase in average loan balances resulting in a 3.8% increase in average earning assets, partially offset by a 4 basis point decrease in the net interest margin. For the first nine months of 2016, net interest income increased $5.3 million or 3.0% from the acquisitions and from annualized organic loan growth of approximately 4.2%, reduced by a 14 basis point decline in the net interest margin.

The net interest margin decreased to 3.32% in the third quarter, compared to 3.36% in same quarter of 2015, but increased two basis points from the second quarter of 2016's 3.30%. The year-over-year decrease in the quarter's net interest margin is primarily due to a 9 basis point decrease for total loans due to repricing of existing loans at lower spreads, competitive pricing on new loans and the extended low interest rate environment.  Mitigating this reduction is the aforementioned loan growth, which improves overall asset yields as average loan rates are generally higher than securities rates. Funding costs increased 11 basis points in the third quarter compared to the same quarter in 2015, primarily due to an increase in the percentage of total FHLB borrowings to 16.4% of interest bearing liabilities from 12.7% in 2015, as well as a 34 basis point increase in the average rate on these borrowings year-over-year. Average interest bearing deposits in the third quarter decreased by 3.5%, primarily due to the runoff of CDs.  During the last few quarters, the net interest margin has been relatively stable, ranging from 3.29% to 3.32% and the re-mix in average earning assets has continued as securities as a percentage of total assets have been reduced from 29.8% at September 30, 2015 to 24.0% at September 30, 2016, while loans have increased as a percentage of total assets to 63.6%.  Year-to-date, the decline in the margin of 14 basis points resulted from the same factors affecting the third quarter.  Loan growth has assisted in maintaining the net interest margin at its present level despite lower loan yields and overall spread compression.

Non-Interest Income

For the third quarter of 2016, non-interest income increased $2.8 million or 15.6% compared to the 2015 third quarter.  Trust fees increased $0.3 million or 5.6% compared to the third quarter of last year from increased total assets under management, higher estate fees and market improvements.  Service charges on deposits increased $0.3 million or 7.0% through a larger customer deposit base from the addition of YCB.  Net securities gains increased $0.6 million in the third quarter of 2016 compared to the third quarter of 2015, primarily due to realized gains resulting from the sale of mortgage-backed securities in the quarter.  Net securities brokerage revenue decreased $0.5 million or 26.2% from staff restructuring and an emphasis on deposit retention. Other income increased $1.9 million in the third quarter due to $1.3 million of commercial customer loan swap fee income and improvement in various other income categories including mortgage banking gains. For the nine months ended September 30, 2016, non-interest income increased $5.6 million or 10.2%, reflecting similar trends as in the third quarter, while trust fees decreased 3.0% due to lower total assets under management and lower estate fees earlier in the year, electronic banking fees increased 5.8% and net gain on sales of mortgage loans increased 40.2%.

Non-Interest Expense

The following comments on non-interest expense exclude merger-related expenses in both years.  Non-interest expense in the third quarter of 2016 grew $0.9 million or 2.0%, compared to the same quarter in 2015.  For the first nine months, non-interest expense increased $3.7 million or 2.7%.  With net revenue growth of 4.7% in the first nine months of 2016, this positive operating leverage helped to improve the efficiency ratio in 2016 to 56.1% from 57.3% in the 2015 period.  For the third quarter, salaries and wages increased $1.4 million or 7.0% due to increased compensation expense related to an 18.3% increase in full-time equivalent employees, primarily in the third quarter of 2016 from the YCB acquisition, and routine annual adjustments to compensation. Employee benefits expense increased $0.2 million, primarily from increased deferred compensation expense. Marketing expense decreased $0.2 million as WesBanco focused on preparing for the introduction of YCB customers to our organization. The increase in non-interest expense for the first nine months of 2016 reflects similar trends as in the third quarter.

Financial Results Conference Call

WesBanco will also host a conference call to discuss the Company's financial results for the third quarter of 2016 at 1:30 p.m. ET on Wednesday, October 26, 2016.  Interested parties can access the live webcast of the conference call through the Investor Relations section of the Company's website, www.wesbanco.com.  Participants can also listen to the conference call by dialing 888-347-6607, 855-669-9657 for Canadian callers, or 412-902-4290 for international callers, and asking to be joined into the WesBanco call. Please log in or dial in at least 10 minutes prior to the start time to ensure a connection.

A replay of the conference call will be available by dialing 877-344-7529, 855-669-9658 for Canadian callers, or 412-317-0088 for international callers, and providing the access code of 10094264. The replay will begin at approximately 3:30 p.m. ET on October 26, and end at 12 a.m. ET on November 9. An archive of the webcast will be available for one year on the Investor Relations section of the Company's website (www.wesbanco.com).

Founded in 1870, WesBanco, Inc. (www.wesbanco.com) is a multi-state, bank holding company with total assets of approximately $9.8 billion (as of September 30, 2016). WesBanco is a diversified and well-balanced financial services institution, with a community bank at its core, built upon a strong legacy of credit and risk management. WesBanco has meaningful market share across its key geographies maintained by its commitment to dedicated customer service and solid fee-based businesses. It also provides wealth management services through a century-old trust and wealth management business, with more than $3 billion of assets under management, and serves as registered investment advisor to a proprietary mutual fund family, the WesMark Funds.  WesBanco's banking subsidiary, WesBanco Bank, Inc., operates 174 financial centers in the states of Indiana, Kentucky, Ohio, Pennsylvania, and West Virginia. In addition, WesBanco operates an insurance agency, 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, 2015 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, 2016, 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 YCB 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 YCB may not be fully realized within the expected timeframes; disruption from the merger of WesBanco and YCB may make it more difficult to maintain relationships with clients, associates, or suppliers; the effects of changing regional and national economic conditions; changes in interest rates, spreads on earning assets and interest-bearing liabilities, and associated interest rate sensitivity; sources of liquidity available to WesBanco and its related subsidiary operations; potential future credit losses and the credit risk of commercial, real estate, and consumer loan customers and their borrowing activities; actions of the Federal Reserve Board, the Federal Deposit Insurance Corporation, the SEC, the Financial Institution Regulatory Authority, the Municipal Securities Rulemaking Board, the Securities Investors Protection Corporation, and other regulatory bodies; potential legislative and federal and state regulatory actions and reform, including, without limitation, the impact of the implementation of the Dodd-Frank Act; adverse decisions of federal and state courts; fraud, scams and schemes of third parties; internet hacking; competitive conditions in the financial services industry; rapidly changing technology affecting financial services; marketability of debt instruments and corresponding impact on fair value adjustments; and/or other external developments materially impacting WesBanco's operational and financial performance.  WesBanco does not assume any duty to update forward-looking statements.

 

 

WESBANCO, INC.

Consolidated Selected Financial Highlights

(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

2016


2015


% Change


2016


2015


% Change


Loans, including fees

$             55,822


$           51,876


7.6


$       160,858


$         151,913


5.9


Interest and dividends on securities:














Taxable 

9,137


10,251


(10.9)


29,129


28,792


1.2



Tax-exempt

4,559


4,535


0.5


13,620


12,120


12.4




Total interest and dividends on securities

13,696


14,786


(7.4)


42,749


40,912


4.5


Other interest income 

574


273


110.3


1,671


1,227


36.2

          Total interest and dividend income

70,092


66,935


4.7


205,278


194,052


5.8

Interest expense













Interest bearing demand deposits

691


517


33.7


1,841


1,425


29.2


Money market deposits

444


485


(8.5)


1,350


1,430


(5.6)


Savings deposits

173


165


4.8


502


475


5.7


Certificates of deposit

2,592


2,662


(2.6)


7,835


8,403


(6.8)




Total interest expense on deposits

3,900


3,829


1.9


11,528


11,733


(1.7)


Federal Home Loan Bank borrowings

3,005


1,650


82.1


9,104


3,157


188.4


Other short-term borrowings

118


89


32.6


299


254


17.7


Subordinated debt and junior subordinated debt owed to unconsolidated subsidiary trusts

1,043


758


37.6


2,706


2,541


6.5




Total interest expense

8,066


6,326


27.5


23,637


17,685


33.7

Net interest income 

62,026


60,609


2.3


181,641


176,367


3.0


Provision for credit losses

2,214


1,798


23.1


6,350


5,768


10.1

Net interest income after provision for credit losses

59,812


58,811


1.7


175,291


170,599


2.8

Non-interest income













Trust fees

5,413


5,127


5.6


16,160


16,656


(3.0)


Service charges on deposits

4,733


4,425


7.0


12,861


12,342


4.2


Electronic banking fees

3,945


3,849


2.5


11,290


10,670


5.8


Net securities brokerage revenue

1,473


1,996


(26.2)


5,119


5,897


(13.2)


Bank-owned life insurance

995


1,021


(2.5)


2,910


3,264


(10.8)


Net gains on sales of mortgage loans

814


779


4.5


2,045


1,459


40.2


Net securities gains

598


47


1,172.3


2,293


69


3,223.2


Net gain/(loss) on other real estate owned and other assets

184


(18)


1,122.2


380


167


127.5


Other income

2,862


960


198.1


6,943


3,916


77.3




Total non-interest income

21,017


18,186


15.6


60,001


54,440


10.2

Non-interest expense













Salaries and wages

21,225


19,832


7.0


60,136


57,468


4.6


Employee benefits

6,275


6,028


4.1


20,684


20,151


2.6


Net occupancy

3,647


3,533


3.2


10,459


10,298


1.6


Equipment 

3,557


3,731


(4.7)


10,387


9,689


7.2


Marketing

1,295


1,514


(14.5)


3,876


4,221


(8.2)


FDIC insurance 

961


1,064


(9.7)


3,225


3,014


7.0


Amortization of intangible assets

837


815


2.7


2,263


2,325


(2.7)


Restructuring and merger-related expenses

9,883


185


5,242.2


10,577


11,033


(4.1)


Other operating expenses  

9,921


10,279


(3.5)


28,696


28,830


(0.5)




Total non-interest expense

57,601


46,981


22.6


150,303


147,029


2.2

Income before provision for income taxes

23,228


30,016


(22.6)


84,989


78,010


8.9


Provision for income taxes 

5,793


7,768


(25.4)


22,572


20,250


11.5

Net Income

$             17,435


$           22,248


(21.6)


$         62,417


$           57,760


8.1
















Taxable equivalent net interest income

$            64,481


$         63,051


2.3


$      188,975


$      182,893


3.3
















Per common share data












Net income per common share - basic

$                 0.44


$               0.58


(24.1)


$              1.61


$               1.55


3.9

Net income per common share - diluted

0.44


0.58


(24.1)


1.61


1.55


3.9

Dividends declared

0.24


0.23


4.3


0.72


0.69


4.3

Book value (period end)







30.71


28.97


6.0

Tangible book value (period end) (1)







17.38


16.27


6.8

Average common shares outstanding - basic

39,715,516


38,523,593


3.1


38,828,618


37,144,783


4.5

Average common shares outstanding - diluted

39,743,291


38,556,995


3.1


38,855,453


37,204,114


4.4

Period end common shares outstanding

43,860,883


38,517,542


13.9


43,860,883


38,517,542


13.9
















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




















 

 

WESBANCO, INC.

Consolidated Selected Financial Highlights

(unaudited, dollars in thousands)



















Selected ratios







For the Nine Months Ended









September 30,










2016


2015


% Change


























Return on average assets





0.97

%

0.97

%

-

%







Return on average equity





7.12


7.44


(4.30)








Return on average tangible equity (1)




12.56


12.97


(3.16)








Yield on earning assets (2) 





3.71


3.78


(1.85)








Cost of interest bearing liabilities




0.52


0.42


23.81








Net interest spread (2)





3.19


3.36


(5.06)








Net interest margin (2)





3.30


3.44


(4.07)








Efficiency (1) (2)






56.12


57.30


(2.06)








Average loans to average deposits




85.16


77.85


9.39








Annualized net loan charge-offs/average loans




0.14


0.24


(41.67)








Effective income tax rate 





26.56


25.96


2.31






















































































For the Quarter Ended










Sept. 30,


June 30,


Mar. 31,


Dec. 31,


Sept. 30,










2016


2016


2016


2015


2015






















Return on average assets





0.79

%

1.05

%

1.08

%

1.07

%

1.05

%



Return on average equity





5.71


7.69


8.07


8.11


7.96




Return on average tangible equity (1)




10.02


13.55


14.40


14.68


14.58




Yield on earning assets (2) 





3.73


3.71


3.70


3.69


3.70




Cost of interest bearing liabilities




0.53


0.53


0.52


0.47


0.42




Net interest spread (2)





3.20


3.18


3.18


3.22


3.28




Net interest margin (2)





3.32


3.30


3.29


3.32


3.36




Efficiency (1) (2) 






55.81


57.04


55.52


56.34


57.60




Average loans to average deposits




87.26


84.99


83.22


80.66


78.75




Annualized net loan charge-offs/average loans




0.20


0.08


0.12


0.20


0.30




Effective income tax rate 





24.94


26.78


27.54


26.20


25.88




Trust assets, market value at period end




$     3,694,405


$        3,660,736


$        3,623,532


$        3,625,411


$        3,650,043






















(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

(unaudited, dollars in thousands, except shares)





% Change

Balance sheets


September 30,



Dec. 31, 

December 31, 2015

Assets



2016


2015


% Change

2015

to September 30, 2016

Cash and due from banks


$           106,430


$          90,831


17.2

$                75,707

40.6

Due from banks - interest bearing


9,702


2,144


352.5

10,978

(11.6)

Securities:











Trading securities, at fair value


7,070


6,294


12.3

6,451

9.6


Available-for-sale, at fair value


1,302,029


1,553,424


(16.2)

1,403,069

(7.2)


Held-to-maturity (fair values of $1,089,227; $864,226 and $1,038,207, respectively)


1,049,093


957,352


9.6

1,012,930

3.6



Total securities


2,358,192


2,517,070


(6.3)

2,422,450

(2.7)

Loans held for sale


20,231


10,765


87.9

7,899

156.1

Portfolio loans:










Commercial real estate


2,826,634


2,183,338


29.5

2,256,381

25.3


Commercial and industrial


1,097,788


725,730


51.3

737,878

48.8


Residential real estate 


1,395,886


1,243,630


12.2

1,247,800

11.9


Home equity


505,369


403,387


25.3

416,889

21.2


Consumer 


411,175


394,557


4.2

406,894

1.1

Total portfolio loans, net of unearned income


6,236,852


4,950,642


26.0

5,065,842

23.1

Allowance for loan losses


(42,755)


(41,624)


(2.7)

(41,710)

(2.5)



Net portfolio loans


6,194,097


4,909,018


26.2

5,024,132

23.3

Premises and equipment, net


138,731


111,699


24.2

112,203

23.6

Accrued interest receivable


29,964


27,000


11.0

25,759

16.3

Goodwill and other intangible assets, net


591,866


492,725


20.1

490,888

20.6

Bank-owned life insurance


186,993


155,894


19.9

150,980

23.9

Other assets


176,178


135,284


30.2

149,302

18.0

Total Assets


$      9,812,384


$   8,452,430


16.1

$         8,470,298

15.8













Liabilities









Deposits:











Non-interest bearing demand


$        1,697,476


$      1,280,329


32.6

$           1,311,455

29.4


Interest bearing demand


1,618,514


1,206,837


34.1

1,152,071

40.5


Money market


1,016,300


1,011,420


0.5

967,561

5.0


Savings deposits


1,228,509


1,064,426


15.4

1,077,374

14.0


Certificates of deposit


1,573,712


1,630,890


(3.5)

1,557,838

1.0



Total deposits


7,134,511


6,193,902


15.2

6,066,299

17.6

Federal Home Loan Bank borrowings


950,847


893,117


6.5

1,041,750

(8.7)

Other short-term borrowings


132,497


84,587


56.6

81,356

62.9

Subordinated debt and junior subordinated debt owed to unconsolidated subsidiary trusts


163,364


106,196


53.8

106,196

53.8



Total borrowings


1,246,708


1,083,900


15.0

1,229,302

1.4

Accrued interest payable


2,898


2,832


2.3

1,715

69.0

Other liabilities


81,116


56,054


44.7

50,850

59.5

Total Liabilities


8,465,233


7,336,688


15.4

7,348,166

15.2













Shareholders' Equity









Preferred stock, no par value; 1,000,000 shares authorized; 










none outstanding


-


-


-

-

-

Common stock, $2.0833 par value; 100,000,000 shares authorized in










2016 and 2015, respectively; 43,860,883;  38,546,042 and 38,546,042 shares










issued, respectively; 43,860,883; 38,517,542 and 38,459,635 shares


91,377


80,304


13.8

80,304

13.8


outstanding, respectively









Capital surplus


678,007


515,783


31.5

516,294

31.3

Retained earnings


583,392


535,777


8.9

549,921

6.1

Treasury stock ( 0; 28,500 and 86,407 shares - at cost, respectively)


-


(890)


100.0

(2,640)

100.0

Accumulated other comprehensive loss


(5,062)


(14,446)


65.0

(20,954)

75.8

Deferred benefits for directors


(563)


(786)


28.4

(793)

29.0

Total Shareholders' Equity


1,347,151


1,115,742


20.7

1,122,132

20.1

Total Liabilities and Shareholders' Equity


$      9,812,384


$   8,452,430


16.1

$         8,470,298

15.8

























 

 

WESBANCO, INC.

Consolidated Selected Financial Highlights

(unaudited, dollars in thousands, except shares)






Balance sheets


Sept. 30,


June 30,


Assets




2016


2016

% Change

Cash and due from banks


$         106,430


$          85,788

24.1

Due from banks - interest bearing


9,702


1,838

427.9

Securities:








Trading securities, at fair value


7,070


6,919

2.2


Available-for-sale, at fair value


1,302,029


1,248,016

4.3


Held-to-maturity (fair values of $1,089,227 and 1,044,644, respectively)


1,049,093


997,354

5.2



Total securities


2,358,192


2,252,289

4.7

Loans held for sale


20,231


9,974

102.8

Portfolio Loans:







Commercial real estate


2,826,634


2,283,198

23.8


Commercial and industrial


1,097,788


814,055

34.9


Residential real estate 


1,395,886


1,242,015

12.4


Home equity


505,369


435,187

16.1


Consumer 


411,175


395,377

4.0

Total portfolio loans, net of unearned income


6,236,852


5,169,832

20.6

Allowance for loan losses


(42,755)


(43,328)

(1.3)



Net portfolio loans


6,194,097


5,126,504

20.8

Premises and equipment, net


138,731


110,611

25.4

Accrued interest receivable


29,964


24,588

21.9

Goodwill and other intangible assets, net


591,866


490,143

20.8

Bank-owned life insurance


186,993


152,876

22.3

Other assets



176,178


142,813

23.4

Total Assets


$    9,812,384


$   8,397,424

16.8










Liabilities







Deposits:








Non-interest bearing demand


$      1,697,476


$      1,310,981

29.5


Interest bearing demand


1,618,514


1,208,149

34.0


Money market


1,016,300


890,584

14.1


Savings deposits


1,228,509


1,088,032

12.9


Certificates of deposit


1,573,712


1,430,353

10.0



Total deposits


7,134,511


5,928,099

20.4

Federal Home Loan Bank borrowings


950,847


1,056,970

(10.0)

Other short-term borrowings


132,497


79,103

67.5

Subordinated debt and junior subordinated debt owed to unconsolidated subsidiary trusts


163,364


106,196

53.8



Total borrowings


1,246,708


1,242,269

0.4

Accrued interest payable


2,898


2,200

31.7

Other liabilities


81,116


60,436

34.2

Total liabilities


8,465,233


7,233,004

17.0










Shareholders' Equity






Preferred stock, no par value; 1,000,000 shares authorized; 







none outstanding


-


-

-

Common stock, $2.0833 par value; 100,000,000 shares authorized;







43,860,883 and 38,546,042 shares issued, respectively;







43,860,883 and 38,411,343 shares outstanding, respectively


91,377


80,304

13.8

Capital surplus


678,007


515,156

31.6

Retained earnings


583,392


576,483

1.2

Treasury stock ( 0 and 134,699 shares - at cost)


-


(3,868)

100.0

Accumulated other comprehensive loss


(5,062)


(3,097)

(63.4)

Deferred benefits for directors


(563)


(558)

1.0

Total Shareholders' Equity


1,347,151


1,164,420

15.7

Total Liabilities and Shareholders' Equity


$    9,812,384


$   8,397,424

16.8



















 

 

WESBANCO, INC.

Consolidated Selected Financial Highlights

(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,








2016

2015



2016

2015







Average 

Average



Average 

Average



Average 

Average



Average 

Average


Assets





Balance

Rate



Balance

Rate



Balance

Rate



Balance

Rate


Due from banks - interest bearing



$            17,433

0.80

%


$            10,448

0.19

%


$                 31,750

0.52

%


$           16,754

0.17

%

Loans, net of unearned income (1)



5,436,876

4.08



4,933,840

4.17



5,231,118

4.11



4,789,807

4.24


Securities: (2)




















    Taxable





1,590,233

2.30



1,854,679

2.21



1,698,558

2.29



1,719,438

2.23


    Tax-exempt (3)





655,356

4.28



628,475

4.44



645,522

4.33



542,700

4.58


        Total securities





2,245,589

2.88



2,483,154

2.78



2,344,080

2.85



2,262,138

2.80


Other earning assets (4)




45,258

4.76



34,712

3.09



45,460

4.54



24,953

6.43


         Total earning assets (3)



7,745,156

3.73

%


7,462,154

3.70

%


7,652,408

3.71

%


7,093,652

3.78

%

Other assets





989,068




937,706




951,530




906,112



Total Assets





$     8,734,224




$     8,399,860




$          8,603,938




$    7,999,764























Liabilities and Shareholders' Equity


















Interest bearing demand deposits



$        1,328,403

0.21

%


$        1,193,502

0.17

%


$            1,250,157

0.20

%


$      1,127,608

0.17

%

Money market accounts 




927,839

0.19



1,007,674

0.19



935,339

0.19



1,006,046

0.19


Savings deposits





1,122,715

0.06



1,070,179

0.06



1,100,094

0.06



1,035,882

0.06


Certificates of deposit




1,426,559

0.72



1,708,206

0.62



1,500,591

0.70



1,732,117

0.65


    Total interest bearing deposits



4,805,516

0.32



4,979,561

0.31



4,786,181

0.32



4,901,653

0.32


Federal Home Loan Bank borrowings



989,585

1.21



754,194

0.87



1,019,696

1.19



493,788

0.85


Other borrowings





114,390

0.41



103,461

0.34



100,054

0.40



105,573

0.32


Subordinated debt and junior subordinated debt owed to unconsolidated subsidiary trusts


119,246

3.48



106,196

2.83



110,582

3.27



118,085

2.88


      Total interest bearing liabilities 



6,028,737

0.53

%


5,943,412

0.42

%


6,016,513

0.52

%


5,619,099

0.42

%

Non-interest bearing demand deposits



1,425,416




1,285,509




1,356,336




1,250,913



Other liabilities





65,258




62,323




60,290




92,258



Shareholders' equity





1,214,813




1,108,616




1,170,799




1,037,494



Total Liabilities and Shareholders' Equity



$     8,734,224




$     8,399,860




$          8,603,938




$    7,999,764



Taxable equivalent net interest spread




3.20

%



3.28

%



3.19

%



3.36

%

Taxable equivalent net interest margin 




3.32

%



3.36

%



3.30

%



3.44

%





















(1) Gross of allowance for loan losses and net of unearned income.  Includes non-accrual and loans held for sale. Loan fees included in interest income on loans are $0.8 million and $40 thousand for the three months ended September 30, 2016 and 2015, respectively, and  $2.3 million and $0.8 million for the nine months ended September 30, 2016 and 2015, respectively. Additionally, loan accretion included in interest income on loans acquired from prior acquisitions was $0.8 million and $1.1 million for the three months ended September 30, 2016 and 2015, respectively, and $2.3 million and $3.0 million for the nine months ended September 30, 2016 and 2015, respectively, while accretion on interest bearing liabilities acquired from the prior acquisitions was $0.3 and $0.8 million for the three months ended September 30, 2016 and 2015, respectively, and $1.2 million and $2.7 million for the nine months ended September 30, 2016 and 2015, 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.









































 

 

WESBANCO, INC.

Consolidated Selected Financial Highlights

(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

2016


2016


2016


2015


2015


Loans, including fees

$            55,822


$                52,697


$              52,338


$                52,080


$              51,876


Interest and dividends on securities:












Taxable 

9,137


9,775


10,217


10,522


10,251



Tax-exempt

4,559


4,540


4,521


4,644


4,535




Total interest and dividends on securities

13,696


14,315


14,738


15,166


14,786


Other interest income 

574


573


525


414


273

          Total interest and dividend income

70,092


67,585


67,601


67,660


66,935

Interest expense











Interest bearing demand deposits

691


643


507


518


517


Money market deposits

444


450


456


484


485


Savings deposits

173


165


165


165


165


Certificates of deposit

2,592


2,583


2,659


2,630


2,662




Total interest expense on deposits

3,900


3,841


3,787


3,797


3,829


Federal Home Loan Bank borrowings

3,005


3,031


3,068


2,353


1,650


Other short-term borrowings

118


99


82


116


89


Subordinated debt and junior subordinated debt owed to unconsolidated subsidiary trusts

1,043


840


822


774


758




Total interest expense

8,066


7,811


7,759


7,040


6,326

Net interest income 

62,026


59,774


59,842


60,620


60,609


Provision for credit losses

2,214


1,811


2,324


2,585


1,798

Net interest income after provision for credit losses

59,812


57,963


57,518


58,035


58,811

Non-interest income











Trust fees

5,413


5,036


5,711


5,244


5,127


Service charges on deposits

4,733


4,176


3,952


4,401


4,425


Electronic banking fees

3,945


3,742


3,604


3,691


3,849


Net securities brokerage revenue

1,473


1,750


1,896


1,795


1,996


Bank-owned life insurance

995


942


973


1,598


1,021


Net gains on sales of mortgage loans

814


683


548


612


779


Net securities gains

598


585


1,111


880


47


Net gain / (loss) on other real estate owned and other assets

184


214


(18)


189


(18)


Other income

2,862


2,463


1,616


1,616


960




Total non-interest income

21,017


19,591


19,393


20,026


18,186

Non-interest expense











Salaries and wages

21,225


19,731


19,180


19,872


19,832


Employee benefits

6,275


7,332


7,077


6,745


6,028


Net occupancy

3,647


3,220


3,591


3,336


3,533


Equipment 

3,557


3,402


3,428


3,506


3,731


Marketing

1,295


1,608


973


1,425


1,514


FDIC insurance 

961


1,099


1,166


1,093


1,064


Amortization of intangible assets

837


697


730


811


815


Restructuring and merger-related expenses

9,883


694


-


48


185


Other operating expenses  

9,921


9,577


9,198


10,058


10,279




Total non-interest expense

57,601


47,360


45,343


46,894


46,981

Income before provision for income taxes

23,228


30,194


31,568


31,167


30,016


Provision for income taxes 

5,793


8,085


8,694


8,165


7,768

Net Income

$                        17,435


$                22,109


$              22,874


$                23,002


$              22,248














Taxable equivalent net interest income

$                       64,481


$               62,219


$             62,276


$               63,121


$             63,051














Per common share data










Net income per common share - basic

$                            0.44


$                    0.58


$                  0.60


$                    0.60


$                  0.58

Net income per common share - diluted

$                            0.44


$                    0.58


$                  0.60


$                    0.60


$                  0.58

Dividends declared

$                            0.24


$                    0.24


$                  0.24


$                    0.23


$                  0.23

Book value (period end)

$                          30.71


$                  30.31


$                29.87


$                  29.18


$                28.97

Tangible book value (period end) (1)

$                          17.38


$                  17.64


$                17.17


$                  16.51


$                16.27

Average common shares outstanding - basic

39,715,516


38,373,610


38,386,983


38,507,772


38,523,593

Average common shares outstanding - diluted

39,743,291


38,410,393


38,402,316


38,538,771


38,556,995

Period end common shares outstanding

43,860,883


38,411,343


38,362,534


38,459,635


38,517,542

Full time equivalent employees

1,936


1,650


1,624


1,633


1,637



























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

 

 

WESBANCO, INC.

Consolidated Selected Financial Highlights

(unaudited, dollars in thousands)





Quarter Ended






Sept. 30,


June 30,


Mar. 31,


Dec. 31,


Sept. 30,


Asset quality data


2016


2016


2016


2015


2015


Non-performing assets:













Troubled debt restructurings - accruing


$           8,605


$           8,979


$           9,550


$         11,548


$         12,030



Non-accrual loans:














Troubled debt restructurings


3,759


4,121


4,517


4,617


12,661




Other non-accrual loans


26,897


28,334


29,343


28,764


28,633




    Total non-accrual loans


30,656


32,455


33,860


33,381


41,294




    Total non-performing loans 


39,261


41,434


43,410


44,929


53,324



Other real estate and repossessed assets


9,794


4,481


5,329


5,825


6,062




Total non-performing assets


$         49,055


$         45,915


$         48,739


$         50,754


$         59,386
















Past due loans (1):













Loans past due 30-89 days


$         17,569


$         10,392


$         11,888


$         11,005


$         12,422



Loans past due 90 days or more


2,392


2,263


4,186


3,126


6,079




Total past due loans


$         19,961


$         12,655


$         16,074


$         14,131


$         18,501
















Criticized and classified loans (2):













Criticized loans


$         35,468


$         26,543


$         31,410


$         26,298


$         32,253



Classified loans


52,909


52,789


53,182


53,408


49,204




Total criticized and classified loans


$         88,377


$         79,332


$         84,592


$         79,706


$         81,457
















Loans past due 30-89 days / total portfolio loans

0.28

%

0.20

%

0.23

%

0.22

%

0.25

%

Loans past due 90 days or more / total portfolio loans

0.04


0.04


0.08


0.06


0.12


Non-performing loans / total portfolio loans


0.63


0.80


0.85


0.89


1.08


Non-performing assets/total portfolio loans, other












real estate and repossessed assets


0.79


0.89


0.95


1.00


1.20


Non-performing assets / total assets


0.50


0.55


0.57


0.60


0.70


Criticized and classified loans / total portfolio loans

1.42


1.53


1.65


1.57


1.65
















Allowance for loan losses












Allowance for loan losses


$         42,755


$         43,328


$         42,525


$         41,710


$         41,624


Provision for credit losses


2,214


1,811


2,324


2,585


1,798


Net loan and deposit account overdraft charge-offs

2,798


1,013


1,532


2,516


3,768
















Annualized net loan charge-offs /average loans

0.20

%

0.08

%

0.12

%

0.20

%

0.30

%

Allowance for loan losses / total portfolio loans

0.69

%

0.84

%

0.83

%

0.82

%

0.84

%

Allowance for loan losses / non-performing loans

1.09

x

1.05

x

0.98

x

0.93

x

0.78

x

Allowance for loan losses / non-performing loans and












loans past due 


0.72

x

0.80

x

0.71

x

0.71

x

0.58

x

































Quarter Ended






Sept. 30,


June 30,


Mar. 31,


Dec. 31,


Sept. 30,






2016


2016


2016


2015


2015


Capital ratios












Tier I leverage capital


9.51

%

9.71

%

9.46

%

9.38

%

9.39

%

Tier I risk-based capital


12.95


13.62


13.30


13.35


13.68


Total risk-based capital


13.94


14.40


14.06


14.11


14.47


Common equity tier 1 capital ratio (CET 1)


11.07


11.88


11.58


11.66


11.92


Average shareholders' equity to average assets

13.91


13.60


13.32


13.24


13.20


Tangible equity to tangible assets (3)


8.26


8.56


8.15


7.95


7.87






























(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

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)

2016


2016


2016


2015


2015


2016

2015

Return on average tangible equity:














Net income (annualized)


$               69,361


$           88,922


$           91,999


$           91,258


$           88,267


$       83,375

$        77,225


Plus: amortization of intangibles (annualized) (1)

2,164


1,822


1,908


2,091


2,102


1,965

2,021


Net income before amortization of intangibles (annualized)

71,525


90,744


93,907


93,349


90,369


85,340

79,246


















Average total shareholders' equity

1,214,813


1,156,923


1,139,514


1,124,759


1,108,616


1,170,799

1,037,494


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

(500,752)


(487,085)


(487,210)


(488,677)


(488,726)


(491,465)

(426,557)


Average tangible equity


$             714,061


$         669,838


$         652,304


$         636,082


$         619,890


$     679,334

$      610,937

















Return on average tangible equity


10.02%


13.55%


14.40%


14.68%


14.58%


12.56%

12.97%

















Efficiency ratio:
















Non-interest expense


$               57,601


$           47,360


$           45,343


$           46,894


$           46,981


$     150,303

$      147,029


Less: restructuring and merger-related expenses

(9,883)


(694)


-


(48)


(185)


(10,577)

(11,033)


Non-interest expense excluding restructuring and merger-related expenses

47,718


46,666


45,343


46,846


46,796


139,726

135,996


















Net interest income on a fully taxable equivalent basis

64,481


62,219


62,276


63,121


63,051


188,975

182,893


Non-interest income


21,017


19,591


19,393


20,026


18,186


60,001

54,440


Net interest income on a fully taxable equivalent basis plus non-interest income

$               85,498


$           81,810


$           81,669


$           83,147


$           81,237


$     248,975

$      237,333


Efficiency Ratio


55.81%


57.04%


55.52%


56.34%


57.60%


56.12%

57.30%

















Net Income, excluding after-tax merger-related expenses:














Net income 



$               17,435


$           22,109


$           22,874


$           23,002


$           22,248


$       62,417

$        57,760


Add: After-tax merger-related expenses (1)

6,424


451


-


31


120


6,875

7,171

Net income, excluding after-tax merger-related expenses

$               23,859


$           22,560


$           22,874


$           23,033


$           22,368


$       69,292

$        64,931

















Net Income, excluding after-tax merger-related expenses per diluted share:














Net income per diluted share


$                   0.44


$               0.58


$               0.60


$               0.60


$               0.58


$           1.61

$            1.55


Add: After-tax merger-related expenses per diluted share (1)

0.16


0.01


-


-


-


0.18

0.20

Net income, excluding after-tax merger-related expenses per diluted share

$                   0.60


$               0.59


$               0.60


$               0.60


$               0.58


$           1.79

$            1.75





































Period End








Sept. 30,


June 30,


Mar. 31,


Dec. 31,


Sept. 30,








2016


2016


2016


2015


2015




Tangible book value:















Total shareholders' equity


$          1,347,151


$      1,164,420


$      1,145,910


$      1,122,132


$      1,115,742





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

(584,690)


(486,913)


(487,267)


(487,270)


(488,893)





Tangible equity


762,461


677,507


658,643


634,862


626,849





















Common shares outstanding


43,860,883


38,411,343


38,362,534


38,459,635


38,517,542




















Tangible book value



$                 17.38


$             17.64


$             17.17


$             16.51


$             16.27




















Tangible equity to tangible assets:














Total shareholders' equity


$          1,347,151


$      1,674,420


$      1,145,910


$      1,122,132


$      1,115,742





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

(584,690)


(486,913)


(497,267)


(487,270)


(488,893)





Tangible equity


762,461


677,507


658,643


634,862


626,849





















Total assets



9,812,384


8,397,424


8,569,381


8,470,298


8,452,430





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

(584,690)


(486,913)


(487,267)


(487,270)


(488,893)





Tangible assets


$          9,227,694


$      7,910,511


$      8,082,114


$      7,983,028


$      7,963,537




















Tangible equity to tangible assets


8.26%


8.56%


8.15%


7.95%


7.87%




































(1) Tax effected at 35%.






























 

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/wesbanco-announces-third-quarter-2016-net-income-300350881.html

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