This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

10 Best Bank Stocks of 2010

6. WesBanco, Inc.

Company Profile

Shares of WesBanco of Wheeling, W.V. closed at $18.65 Wednesday, returning 56% year-to-date according to SNL Financial.

WesBanco shares have shot up dramatically this year, up 56% since the start of 2010. The stock moved from a level around $12 in January to top $20 in the spring, then back down to the mid-teens in early fall. Now it's climbing back toward $20, closing above $19.50 in a recent session for the first time in months. The stock also pays a 14-cent quarterly dividend, half of its pre-crisis level but still a reasonable income stream relative to other bank stocks. Based on that payout, the shares yield 3.00%.

Income Statement

For the third quarter, WesBanco reported net income of $9.2 million, or 34 cents a share, compared to net income to common shareholders of $2.3 million, or 9 cents a share, a year earlier, when the company paid $3.1 million unamortized discounts and dividends when it redeemed the $75 million in preferred shares held by the government to completely exit TARP.

The third-quarter provision for credit losses was $11.8 million, declining from $16.2 million a year earlier. The company "released" $6.2 million in loan loss reserves, since third-quarter net charge-offs totaled $17.7 million. This followed the pattern for many of the nation's largest bank holding companies, including Citigroup, with loan loss reserves declining $2.5 billion during the third quarter, along with Bank of America and JPMorgan Chase (JPM), which each reported a $1.68 billion decline in loan loss reserves.

WesBanco's third-quarter ROA was 0.62% and its net interest margin was 3.61%, improving from 3.35% a year earlier.

The improvements have come from a combination of top-line growth and lower credit costs, even as WesBanco's loan portfolio shrunk. The bank is reaching into business lines like wealth management and trust services, which helped pad fee income, while reducing problematic commercial real-estate holdings.

Balance Sheet

Total assets were $5.4 billion as of September 30 and the NPA ratio was 1.33%, improving from 1.47% a year earlier. The third-quarter net charge-off ratio was 2.10% and loan loss reserves covered 1.77% of total loans as of September 30.

In a point of pride, WesBanco was able to repay its bailout funds last year without raising any new common stock. Management has touted a strategy of growing through opportunistic acquisitions, focused on big cities and thoroughfares in its Midwest footprint.

The Tier 1 leverage ratio was 8.17% and the total risk-based capital ratio was 12.89% as of September 30. The tangible common equity ratio was 6.34% according to SNL Financial.

Stock Ratios

The shares trade for 1.5 times tangible book value and 13.5 times the $1.38 consensus earnings estimate for 2011. The forward P/E drops to 10.9 based on the 2012 consensus earnings estimate of $1.71 a share.

Analyst RatingsOut of seven analysts covering WesBanco, two rate the shares a buy, while the other five recommend investors hold the shares.

6 of 11

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,960.57 -123.23 -0.72%
S&P 500 1,978.34 -9.64 -0.48%
NASDAQ 4,449.5640 -22.5440 -0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs