WesBanco Inc.
04/20/2005 | Press release | Archived content
WesBanco Announces a 13.5% Increase in First Quarter 2005 Net Income
WHEELING, W.Va., April 20 /PRNewswire-FirstCall/ -- Paul M. Limbert, President & Chief Executive Officer of WesBanco, Inc. (Nasdaq: WSBC), a Wheeling, West Virginia-based multi-state bank holding company, today announced earnings for the first quarter.
Net income for the first quarter ended March 31, 2005 increased 13.5% to $11.1 million as compared to $9.8 million for the first quarter of 2004, while diluted earnings per share for the first quarter ended March 31, 2005 were $0.48 compared to $0.49 for 2004, a decrease of 2.0%. The first quarter of 2005 includes Winton Financial Corporation ("Winton"), a $550 million thrift institution acquired on January 3, 2005. The 2004 first quarter results exclude Winton and Western Ohio Financial Corporation ("Western Ohio"), a $400 million savings bank acquired on August 31, 2004. Results for the first quarter of 2005 were 22.7% ahead of the net income of $9.0 million recorded for the fourth quarter of 2004 and diluted earnings per share, as compared to the same period's $0.43, were up 11.6%.
"WesBanco's first quarter results were highlighted by an increase in our total assets due to the Winton acquisition, as well as increased revenues that were achieved through continued growth in our net interest income and non- interest income," Mr. Limbert stated. "Our balance sheet growth continues to be led by loan growth in commercial and commercial real estate lending, which grew organically by 13.9% or $140.5 million since the first quarter of 2004 as well as the additional loans acquired in the Winton and Western Ohio mergers. The improvement in credit quality, which began in 2004, continued in the first quarter of 2005, with noted decreases in net charge-offs and the provision for loan losses," said Mr. Limbert.
Highlights for the first quarter of 2005 included:
* On January 3, 2005, WesBanco completed the acquisition of Winton, which
was announced on August 25, 2004. The acquisition was consummated
through the exchange of a combination of 2,297,000 shares of WesBanco
common stock and cash totaling approximately $42.1 million. For the
first quarter ended March 31, 2005, WesBanco recorded approximately
$0.5 million in merger-related expenses related to this acquisition and
recorded goodwill of $62.7 million and a core deposit intangible of
$2.8 million.
* Net interest income increased $7.2 million or 27.3% over the first
quarter of 2004. The net interest margin was 3.51% compared to 3.71%
for the first quarter of 2004, due primarily to the acquired
institutions having lower net interest margins than WesBanco and
overall market conditions, but it was relatively equal on a linked
quarter basis to the fourth quarter of 2004 which reflected a net
interest margin of 3.52%. WesBanco's net interest margin was higher
than expected in the first quarter of 2005 as core deposit rates have
lagged the increases in short-term market interest rates; however, with
market rates anticipated to further increase over the course of the
year, market competitive factors may result in further margin
compression.
* Non-interest income increased $0.8 million or 8.8% over the first
quarter of 2004, primarily from higher service charge revenue on
deposit accounts, due to an increase in the number of accounts and an
increase in trust revenues.
* WesBanco's provision for loan losses was $1.8 million for both the
first quarter of 2005 and 2004, while the loan portfolio grew by $1.0
billion or 52.0% over March 31, 2004. The same level of provision was
primarily due to the lower risk assets obtained in the two
acquisitions, lower delinquencies and non-performing loans and assets,
as well as decreased net charge-offs compared to 2004. At March 31,
2005 the allowance for loan loss as a percentage of total loans was
1.09%, down from 1.37% at March 31, 2004 due to the acquired
institutions having allowance percentages below 1% as of the
acquisition dates, a change in loan mix and improved economic
conditions with lower overall charge-offs.
* Non-interest expense increased $6.0 million or 28.4% over the first
quarter of 2004, primarily driven higher by the increase in full-time
equivalent employees, salaries, employee benefits and an overall
increase in operating costs due to the Winton and Western Ohio
acquisitions. Anticipated staffing reductions in the Winton transaction
did not occur until after the data processing conversion late in
February 2005. Included in salary expense for the first quarter of
2005, was approximately $0.3 million for employees who were terminated
as a result of the Winton merger. Cost savings related to the Winton
acquisition commenced in March 2005 and are expected to be fully
realized by 2006.
* Total loans increased $1.0 billion or 52.0% between March 31, 2004 and
March 31, 2005, due primarily to the Winton and Western Ohio
acquisitions, which added approximately $840 million to the loan
portfolio as of their respective merger dates, while the remainder of
the increase is attributed to continued organic loan growth primarily
in the commercial and commercial real estate categories.
* Total deposits increased $608.7 million or 24.7% between March 31, 2004
and March 31, 2005, due primarily to the Winton and Western Ohio
acquisitions, which added approximately $360 million and $255 million,
respectively, to WesBanco's deposits as of their respective merger
dates. As a result of the acquisitions, WesBanco's deposit mix has
become more weighted to the time deposit category.
* In March 2005, WesBanco issued an additional $15.0 million in junior
subordinated debt. The proceeds received from the issuance of the trust
preferred securities will be used for general corporate purposes, which
may include, among other things, share repurchases, potential
acquisitions and employee benefit plans.
* In the first quarter of 2005, WesBanco's dividend rate was increased
4.0% to $1.04 per share on an annualized basis, up from the previous
rate of $1.00 per share.
* For the quarter ended March 31, 2005, WesBanco repurchased a total of
493,121 shares at an average cost of $27.68 per share. In March 2005,
WesBanco's Board of Directors authorized a new one million share
repurchase plan, which is to begin upon completion of the current plan
anticipated in the second quarter.
"WesBanco had an exciting first quarter of 2005. We look forward to the remainder of the year, as WesBanco will continue to integrate both the Winton and Western Ohio acquisitions. We will also look for increased efficiencies within our organization and focus on growth in all product lines, as well as focusing the company on new market areas which hold significant promise," said Mr. Limbert.
WesBanco is a multi-state bank holding company with total assets of approximately $4.6 billion, operating through 85 banking offices, 2 loan production offices, and 129 ATMs in West Virginia, Ohio, Pennsylvania and Indiana. WesBanco's banking subsidiary is WesBanco Bank, Inc., headquartered in Wheeling, West Virginia. In addition, WesBanco operates an insurance brokerage company, WesBanco Insurance Services, Inc., and a full service broker/dealer, WesBanco Securities, Inc. that also operates Mountaineer Securities, WesBanco's discount brokerage operation.
Forward-looking statements in this press release 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 press release should be read in conjunction with WesBanco's 2004 Annual Report on Form 10-K, as well as the 10-Q's for the prior quarters ended September 30, 2004, June 30, 2004 and March 31, 2004, filed with the Securities and Exchange Commission ("SEC"), which are available at the SEC's website www.sec.gov or at WesBanco's website, www.wesbanco.com . Investors are cautioned that forward- looking statements, which are not historical fact, involve risks and uncertainties, including those detailed in WesBanco's 2004 Annual Report on Form 10-K filed with the SEC under the section "Risk Factors". Such statements are subject to important factors that could cause actual results to differ materially from those contemplated by such statements, including without limitation, the businesses of WesBanco and its recent acquisitions 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 mergers may not be fully realized within the expected timeframes; disruption from the mergers 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 the parent company 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, Federal Deposit Insurance Corporation, the SEC, the National Association of Securities Dealers and other regulatory bodies; potential legislative and federal and state regulatory actions and reform; competitive conditions in the financial services industry; rapidly changing technology affecting financial services and/or other external developments materially impacting WesBanco's operational and financial performance. WesBanco does not assume any duty to update forward-looking statements.
See attached financial highlights
WESBANCO, INC.
Consolidated Selected Financial Highlights
(unaudited, dollars in thousands, except per share amounts)
For the Three Months Ended
March 31,
Statement of income 2005 2004 % Change
Interest income $54,884 $39,831 37.79%
Interest expense 21,383 13,504 58.35%
Net interest income 33,501 26,327 27.25%
Provision for loan losses 1,843 1,800 2.39%
Net interest income after
provision for loan losses 31,658 24,527 29.07%
Non-interest income
Trust fees 3,714 3,531 5.18%
Service charges on deposit
accounts 3,530 3,013 17.16%
Net securities gains 753 661 13.92%
Other income 1,534 1,556 (1.41%)
Total non-interest income 9,531 8,761 8.79%
Non-interest expense
Salaries and employee benefits 13,896 11,195 24.13%
Net occupancy 1,796 1,569 14.47%
Equipment 2,204 1,770 24.52%
Core deposit intangibles 663 287 131.01%
Merger-related expenses (1) 493 8 6,062.50%
Other operating 8,077 6,306 28.08%
Total non-interest expense 27,129 21,135 28.36%
Income before provision for
income taxes 14,060 12,153 15.69%
Provision for income taxes 2,980 2,394 24.48%
Net income $11,080 $9,759 13.54%
Taxable equivalent net interest income $36,024 $28,670 25.65%
Per common share data
Net income per common share - basic $0.48 $0.49 (2.04%)
Net income per common share - diluted $0.48 $0.49 (2.04%)
Dividends declared $0.26 $0.25 4.00%
Book value (period end) $18.62 $16.55 12.51%
Tangible book value (period end) $12.08 $13.63 (11.37%)
Average shares outstanding - basic 22,992,398 19,719,934 16.59%
Average shares outstanding - diluted 23,043,874 19,769,505 16.56%
Period end shares outstanding 22,769,417 19,673,103 15.74%
(1) merger-related expenses are primarily related to the acquisitions of
Winton Financial Corporation and Western Ohio Financial Corporation.
WESBANCO, INC.
Consolidated Selected Financial Highlights
(unaudited, dollars in thousands) % Change
March 31,
Balance sheet (period end) March 31, March 31, 2004 to
Assets 2005 2004 March 31,
2005
Cash and due from banks $71,138 $68,193 4.32 %
Due from banks interest bearing 3,555 3,835 (7.30)
Federal funds sold - 13,000 (100.00)
Securities 1,186,642 1,142,074 3.90
Loans:
Commercial and commercial real estate 1,489,547 1,012,278 47.15
Residential real estate 1,029,102 575,458 78.83
Consumer and home equity 444,586 361,978 22.82
Total loans 2,963,235 1,949,714 51.98
Allowance for loan losses (32,225) (26,802) 20.23
Net loans 2,931,010 1,922,912 52.43
Premises and equipment, net 62,363 52,623 18.51
Goodwill 136,619 49,868 173.96
Core deposit intangible, net 12,304 7,646 60.92
Other assets 153,982 116,361 32.33
Total Assets $4,557,613 $3,376,512 34.98 %
Liabilities and Shareholders' Equity
Non-interest bearing demand deposits $359,871 $317,095 13.49 %
Interest bearing demand deposits 324,268 292,004 11.05
Money market accounts 577,532 570,047 1.31
Savings deposits 448,659 353,206 27.02
Certificates of deposit 1,359,260 928,512 46.39
Total deposits 3,069,590 2,460,864 24.74
Federal Home Loan Bank borrowings 711,415 360,386 97.40
Other borrowings 225,893 152,077 48.54
Junior subordinated debt 87,638 30,936 183.29
Other liabilities 39,031 46,626 (16.29)
Shareholders' equity 424,046 325,623 30.23
Total Liabilities and Shareholders'
Equity $4,557,613 $3,376,512 34.98 %
WESBANCO, INC.
Consolidated Selected Financial Highlights
(unaudited, dollars in thousands) % Change
Balance sheet (period end) December 31, December 31,
2004 2004
Assets to March 31,
2005
Cash and due from banks $93,611 (24.01)%
Due from banks interest bearing 3,446 3.16
Federal funds sold - -
Securities 1,172,182 1.23
Loans:
Commercial and commercial real
estate 1,308,044 13.88
Residential real estate 774,506 32.87
Consumer and home equity 405,985 9.51
Total loans 2,488,535 19.08
Allowance for loan losses (29,486) 9.29
Net loans 2,459,049 19.19
Premises and equipment, net 56,670 10.05
Goodwill 73,760 85.22
Core deposit intangible, net 10,162 21.08
Other assets 142,519 8.04
Total Assets $4,011,399 13.62 %
Liabilities and Shareholders' Equity
Non-interest bearing demand deposits $355,364 1.27 %
Interest bearing demand deposits 312,080 3.91
Money market accounts 587,523 (1.70)
Savings deposits 362,581 23.74
Certificates of deposit 1,108,386 22.63
Total deposits 2,725,934 12.61
Federal Home Loan Bank borrowings 599,411 18.69
Other borrowings 200,513 12.66
Junior subordinated debt 72,174 21.43
Other liabilities 43,186 (9.62)
Shareholders' equity 370,181 14.55
Total Liabilities and Shareholders'
Equity $4,011,399 13.62 %
Average balance sheet and
net interest margin analysis For the Three Months Ended
March 31,
2005
Average Annualized Average
Assets Volume Interest Rate
Due from banks - interest bearing $6,736 $81 1.20%
Loans, net of unearned income 2,959,371 173,764 5.87%
Securities:
Taxable 761,990 29,320 3.85%
Tax-exempt 410,699 28,837 7.02%
Total securities 1,172,689 58,157 4.96%
Federal funds sold 3,690 88 2.38%
Total earning assets 4,142,486 $232,090 5.60%
Other assets 407,192
Total Assets $4,549,678
Liabilities and Shareholders' Equity
Interest bearing demand deposits $330,477 $1,326 0.40%
Money market accounts 588,321 10,796 1.84%
Savings deposits 437,892 2,255 0.51%
Certificates of deposit 1,352,283 39,083 2.89%
Total interest bearing deposits 2,708,973 53,460 1.97%
Federal Home Loan Bank borrowings 719,746 24,102 3.35%
Other borrowings 221,499 4,867 2.20%
Junior subordinated debt 74,580 4,295 5.76%
Total interest bearing
liabilities 3,724,798 $86,724 2.33%
Non-interest bearing demand deposits 359,619
Other liabilities 34,179
Shareholders' equity 431,082
Total Liabilities and
Shareholders' Equity $4,549,678
Taxable equivalent net interest
spread 3.27%
Taxable equivalent net interest
margin 3.51%
Average balance sheet and For the Three Months Ended
net interest margin analysis March 31,
2004
Average Annualized Average
Assets Volume Interest Rate
Due from banks - interest bearing $3,835 $37 0.96%
Loans, net of unearned income 1,927,964 113,267 5.87%
Securities:
Taxable 786,329 29,139 3.71%
Tax-exempt 375,284 26,775 7.13%
Total securities 1,161,613 55,914 4.81%
Federal funds sold 10,476 96 0.92%
Total earning assets 3,103,888 $169,314 5.45%
Other assets 270,001
Total Assets $3,373,889
Liabilities and Shareholders' Equity
Interest bearing demand deposits $293,956 $784 0.27%
Money market accounts 564,266 9,395 1.66%
Savings deposits 351,748 1,126 0.32%
Certificates of deposit 930,399 26,276 2.82%
Total interest bearing deposits 2,140,369 37,581 1.76%
Federal Home Loan Bank borrowings 357,757 12,830 3.59%
Other borrowings 175,957 2,176 1.24%
Junior subordinated debt 30,936 1,725 5.58%
Total interest bearing
liabilities 2,705,019 $54,312 2.01%
Non-interest bearing demand deposits 315,015
Other liabilities 33,023
Shareholders' equity 320,832
Total Liabilities and
Shareholders' Equity $3,373,889
Taxable equivalent net interest
spread 3.45%
Taxable equivalent net interest
margin 3.71%
WESBANCO, INC.
Consolidated Selected Financial Highlights
(unaudited, dollars in thousands, except per share amounts)
Quarter Ended
March 31, Dec.31, Sept. 30,
Statement of income 2005 2004 2004
Interest income $54,884 $46,727 $42,858
Interest expense 21,383 17,465 15,585
Net interest income 33,501 29,262 27,273
Provision for loan losses 1,843 2,269 2,170
Net interest income after
provision for loan losses 31,658 26,993 25,103
Non-interest income
Trust fees 3,714 3,334 2,981
Service charges on deposit
accounts 3,530 3,595 3,509
Net securities gains 753 733 867
Other income 1,534 1,755 1,914
Total non-interest income 9,531 9,417 9,271
Non-interest expense
Salaries and employee benefits 13,896 13,044 11,876
Net occupancy 1,796 1,496 1,336
Equipment 2,204 2,177 1,897
Core deposit intangibles 663 414 382
Merger-related expenses (1) 493 180 200
Other operating 8,077 7,807 6,482
Total non-interest expense 27,129 25,118 22,173
Income before provision for
income taxes 14,060 11,292 12,201
Provision for income taxes 2,980 2,260 2,173
Net income $11,080 $9,032 $10,028
Taxable equivalent net interest income $36,024 $31,652 $29,642
Per common share data
Net income per common share - basic $0.48 $0.44 $0.50
Net income per common share - diluted $0.48 $0.43 $0.50
Dividends declared $0.26 $0.25 $0.25
Book value (period end) $18.62 $17.77 $17.59
Tangible book value (period end) $12.08 $13.74 $13.49
Average shares outstanding - basic 22,992,398 20,795,545 20,206,108
Average shares outstanding - diluted 23,043,874 20,871,212 20,256,465
Period end shares outstanding 22,769,417 20,837,469 20,823,606
Full time equivalent employees (period
end) 1,358 1,209 1,229
Selected ratios
Return on average assets 0.99% 0.92% 1.10%
Return on average equity 10.42% 9.79% 11.88%
Yield on earning assets (2) 5.60% 5.45% 5.37%
Cost of interest bearing liabilities 2.33% 2.19% 2.12%
Net interest spread (2) 3.27% 3.26% 3.25%
Net interest margin (2) 3.51% 3.52% 3.52%
Efficiency (2) 59.55% 61.16% 56.98%
Average loans to average deposits 96.44% 89.80% 87.29%
Trust assets, market value at period
end $2,589,631 $2,664,795 $2,594,226
(1) merger-related expenses are primarily related to the acquisitions of
Winton Financial Corporation and Western Ohio Financial Corporation.
(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 per share amounts)
Quarter Ended
June 30, March 31,
Statement of income 2004 2004
Interest income $40,020 $39,831
Interest expense 13,658 13,504
Net interest income 26,362 26,327
Provision for loan losses 1,496 1,800
Net interest income after
provision for loan losses 24,866 24,527
Non-interest income
Trust fees 3,210 3,531
Service charges on deposit
accounts 3,233 3,013
Net securities gains 155 661
Other income 1,494 1,556
Total non-interest income 8,092 8,761
Non-interest expense
Salaries and employee benefits 11,278 11,195
Net occupancy 1,362 1,569
Equipment 1,884 1,770
Core deposit intangibles 287 287
Merger-related expenses (1) 8 8
Other operating 6,627 6,306
Total non-interest expense 21,446 21,135
Income before provision for
income taxes 11,512 12,153
Provision for income taxes 2,149 2,394
Net income $9,363 $9,759
Taxable equivalent net interest
income $28,689 $28,670
Per common share data
Net income per common share - basic $0.48 $0.49
Net income per common share - diluted $0.48 $0.49
Dividends declared $0.25 $0.25
Book value (period end) $16.22 $16.55
Tangible book value (period end) $13.30 $13.63
Average shares outstanding - basic 19,665,779 19,719,934
Average shares outstanding - diluted 19,709,958 19,769,505
Period end shares outstanding 19,649,453 19,673,103
Full time equivalent employees
(period end) 1,161 1,133
Selected ratios
Return on average assets 1.10% 1.16%
Return on average equity 11.80% 12.23%
Yield on earning assets (2) 5.42% 5.45%
Cost of interest bearing liabilities 2.00% 2.01%
Net interest spread (2) 3.41% 3.45%
Net interest margin (2) 3.67% 3.71%
Efficiency (2) 58.31% 56.46%
Average loans to average deposits 80.72% 78.52%
Trust assets, market value at period
end $2,577,985 $2,755,289
(1) merger-related expenses are primarily related to the acquisitions of
Winton Financial Corporation and Western Ohio Financial Corporation.
(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)
Quarter Ended
March 31, Dec. 31, Sept. 30, June 30, March 31,
Asset quality data 2005 2004 2004 2004 2004
Non-performing assets:
Non-accrual loans $8,476 $8,195 $7,685 $8,639 $9,158
Renegotiated loans - - - 646 651
Total non-performing
loans 8,476 8,195 7,685 9,285 9,809
Other real estate and
repossessed assets 2,497 2,059 1,986 1,708 2,493
Total non-performing
loans and assets $10,973 $10,254 $9,671 $10,993 $12,302
Loans past due 90 days
or more $8,032 $7,584 $6,262 $4,169 $5,041
Non-performing
assets/total assets 0.24 % 0.26 % 0.25 % 0.31 % 0.36 %
Non-performing
assets/total loans,
other real estate and
repossessed assets 0.37 % 0.41 % 0.40 % 0.54 % 0.63 %
Non-performing
loans/total loans 0.29 % 0.33 % 0.32 % 0.46 % 0.50 %
Non-performing loans
and loans past due 90
days or more/total
loans 0.56 % 0.63 % 0.58 % 0.66 % 0.76 %
Allowance for loan
losses
Allowance for loan
losses $32,225 $29,486 $29,694 $27,267 $26,802
Provision for loan
losses $1,843 $2,269 $2,170 $1,496 $1,800
Net loan charge-offs 1,051 2,478 1,814 1,031 1,233
Annualized net loan
charge-offs /average
loans 0.14 % 0.31 % 0.27 % 0.31 % 0.26 %
Allowance for loan
losses/total loans 1.09 % 1.18 % 1.23 % 1.34 % 1.37 %
Allowance for loan
losses/non-performing
loans 3.80 x 3.60 x 3.86 x 2.94 x 2.73 x
Allowance for loan
losses/non-performing
loans and past due 90
days or more 1.95 x 1.87 x 2.13 x 2.03 x 1.80 x
Capital ratios
Tier I leverage capital 8.39 % 9.34 % 9.98 % 10.11 % 8.92 %
Tier I risk-based
capital 12.10 % 13.43 % 13.61 % 15.00 % 13.49 %
Total risk-based
capital 13.15 % 14.54 % 14.76 % 16.21 % 14.71 %
Shareholders' equity to
assets 9.30 % 9.23 % 9.39 % 9.11 % 9.64 %
Tangible equity to
tangible assets (1) 6.52 % 7.36 % 7.59 % 7.79 % 7.94 %
(1) Tangible equity is defined as shareholders' equity less goodwill and
other intangible assets.
SOURCE WesBanco, Inc.
-0- 04/20/2005
/CONTACT: Paul M. Limbert, President & Chief Executive Officer, or Robert
H. Young, Executive VP & Chief Financial Officer of WesBanco, Inc.,
+1-304-234-9000 /
/Web site: http://www.wesbanco.com /
(WSBC)
CO: WesBanco, Inc.
ST: West Virginia
IN: FIN
SU: ERN
JS-JT
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7904 04/20/200516:09 EDThttp://www.prnewswire.com