WesBanco Inc.
07/23/2008 | Press release | Archived content
WesBanco Announces Results for the Second Quarter and Six Months of 2008
WHEELING, W.Va., July 23 /PRNewswire-FirstCall/ -- Paul M. Limbert, President and Chief Executive Officer of WesBanco, Inc. (Nasdaq: WSBC), a Wheeling, West Virginia based multi-state bank holding company, today announced earnings for the second quarter and year-to-date periods ended June 30, 2008.
Net income for the quarter ended June 30, 2008 was $11.3 million while diluted earnings per share were $0.42, as compared to $9.5 million or $0.36 per share for the first quarter of 2008. Earnings per share for 2008 included the full effect of the issuance of additional shares of stock for the purchase of Oak Hill Financial, Inc. ("Oak Hill"). The increase in net income over the first quarter was primarily due to improvement in the net interest margin, increasing to 3.75% from 3.48% in the first quarter, resulting primarily from a decline in the cost of funds. The margin increase provided a $2.1 million increase in net interest income in the 2008 second quarter as compared to the first quarter. The quarter also benefited from a decrease in non-interest expenses from the first quarter of 2.6%, excluding merger related expenses, due to additional operating efficiencies resulting from the merger and continued integration of the former Oak Hill Banks.
Net income decreased 8.2% during the second quarter of 2008, as compared to the second quarter of 2007; however, income before provision for income taxes decreased only 1.7%. A tax provision adjustment relating to previous years' deferred taxes was recorded in the second quarter of 2007. Offsetting factors to the decrease in income before income taxes were a 39.5% improvement in net interest income from the larger balance sheet due to the acquisition of Oak Hill, an increase in the net interest margin, and a $3.9 million or 222.2% increase in the provision for credit losses. The margin improvements were due primarily to a decline in the cost of funds, while the increase in the provision for credit losses was primarily the result of general economic conditions. The decrease in diluted earnings per share to $0.42 in the second quarter of 2008 as compared to $0.59 per share in the 2007 second quarter, was also impacted by the additional shares issued for the acquisition of Oak Hill.
For the six month period, net income was $20.8 million or $0.78 per share in 2008, while for the same 2007 period, net income was $24.2 million or $1.15 per share. The net interest margin was 3.67% in the first half of 2008 as compared to 3.52% in the same 2007 period. The margin increase and the increase in the balance sheet provided a 34.0% increase in net interest income. These increases were somewhat offset by a higher provision for loan losses, which increased $7.9 million for the 2008 six month period, compared to the prior year period.
"The net interest margin has grown in each of the last three quarters at an accelerating rate, as the cost of liabilities continues to decline due to the improved interest rate environment," said Mr. Limbert. "Total non-interest income has also increased primarily from a change in deposit demographics which led to improvements in service charges and other fee businesses. However, the challenging economic environment for the banking industry continues, which significantly affected our loan loss provision year-to-date."
"A number of merger-related integration efforts were completed in the second quarter. In April, five former Oak Hill branches were sold, the former Oak Hill Banks was merged into WesBanco Bank and all data processing systems were converted to WesBanco's systems. In June, two additional branches located in Ohio were closed. These accomplishments have standardized products and delivery systems for our customers' benefit and improved efficiencies, reducing non-interest expenses by 2.6%, excluding merger related expenses, in the second quarter compared to the first quarter of 2008. We will continue through 2008 to integrate the Oak Hill operations into WesBanco to further realize the benefits of this acquisition. WesBanco remains on track to realize its previously announced cost saving targets."
Highlights for the second quarter and six months ended June 30, 2008 include the following:
-- Net interest income increased $2.1 million or 5.5% over the first quarter due to improvement in the net interest margin, which increased to 3.75% from 3.48% in the first quarter. The twenty-seven basis point increase in the net interest margin was primarily due to a forty-eight basis point decline in the cost of interest bearing liabilities. This decrease in interest expense resulted from the effect on WesBanco's liability sensitive balance sheet of declining interest rates over the previous twelve months. The margin has also benefited from higher average non-interest bearing deposit balances. Year-to-date, net interest income increased 34.0% due to an increase in average earning assets of 25.4% resulting from the acquisition of Oak Hill and a fifteen basis point increase in the net interest margin to 3.67%. Net interest income for the second quarter of 2008 increased 39.5% compared to the 2007 second quarter, due to the higher average balance sheet and an increase in the net interest margin to 3.75% from 3.46%.
-- In the second quarter non-interest income decreased $0.2 million compared to the 2008 first quarter, due to a decrease in other income of $0.8 million, primarily from a gain recorded in the first quarter of $0.4 million from the mandatory redemption of VISA class B stock, and other smaller decreases, partially offset by an increase in service charges on deposits of $0.9 million. Non-interest income for the first six months of 2008 increased $3.3 million compared to the same period of 2007 primarily resulting from increases in service charges on deposits and improved revenue from electronic banking fees, insurance and securities brokerage operations. In the 2008 second quarter, non-interest income increased by $1.4 million as compared to the second quarter of 2007 primarily due to increases in service charges on deposits. Other income decreased by $1.0 million due to gains in the 2007 quarter of $0.9 million on a bank owned life insurance contract and $0.9 million on the early extinguishment of debt.
-- The provision for credit losses in the second quarter of 2008 increased $0.3 million compared to the first quarter of 2008. For the six months ended June 30, 2008 the provision increased $7.9 million as compared to the same 2007 period. This additional provision is a reflection of changing economic conditions adversely impacting our market areas which have caused charge-offs and non-performing loans to increase. For the 2008 second quarter, net charge-offs were 0.45% as compared to 0.39% in the 2008 first quarter and 0.19% in the 2007 second quarter. Net charge offs were $4.1 million in the second quarter of 2008. Non-performing loans as a percent of total loans were 0.82% for the 2008 second quarter, 0.72% for the first quarter of 2008 and 0.34% for the second quarter of 2007. The increase in non-performing loans from the first quarter of 2008 was primarily the result of a single commercial real estate loan of $2.2 million being placed on non-accrual during the second quarter. Loans past due 90 days or more and accruing interest were 0.42% for the 2008 second quarter, 0.38% for the first quarter of 2008 and 0.28% for the second quarter of 2007. Delinquencies on loans past due 30 to 89 days were 1.34% for the 2008 second quarter, 1.66% for the first quarter of 2008 and 1.15% for the second quarter of 2007. Credit deterioration is due to general economic conditions primarily in our metropolitan markets. As a result of the year-to-date provision exceeding net charge offs by $1.7 million, the allowance for loan losses as a percent of total loans increased from 1.04% as of December 31, 2007 to 1.15% at June 30, 2008. In addition, at June 30, 2008, $7.5 million of impaired loans acquired from Oak Hill are carried net of an SOP-03-3 credit valuation adjustment of $2.7 million.
-- Non-interest expense for the 2008 second quarter decreased 0.8%, or 2.6% excluding merger related expenses, compared to the first quarter of 2008 due to Oak Hill integration efforts. The bank charters were merged, the data processing systems were converted and the sale of five branches was completed in April. Two additional branches were closed on June 30. The primary benefit of these integration efforts are expected be realized beginning in the third and fourth quarters. For the first half of 2008 expenses increased $19.4 million, or $16.7 million excluding merger related expenses. These increases were primarily in salaries, benefits, facilities and other normal operating costs and were consistent with the 32.2% increase in assets from June 30, 2007 to June 30, 2008, and the costs of operating two separate bank charters through April of 2008. Occupancy and equipment costs were also affected by two new branch facilities opened in 2007 and recent technology and other equipment upgrades. Non-interest expense in the second quarter of 2008 increased $9.2 million or 34.3%, due primarily to the Oak Hill acquisition, or 28.1%, excluding merger related expenses as compared to the second quarter of 2007. Merger-related expenses, all of which related to Oak Hill, charged to operations in 2008 were $1.7 million in the second quarter and $2.7 million in the year-to-date period.
-- The provision for income taxes decreased $0.4 million in the first half of 2008 compared to the same 2007 period due to a decrease in pre-tax income, partially offset by an increase in the effective tax rate. For 2008 the effective tax rate increased to 18.2% as compared to 17.2% in the first half of 2007 due primarily to a $1.6 million correction of deferred taxes in the second quarter of 2007. The effective tax rate was impacted in 2008 by a higher percentage of tax-exempt income to total income and the benefit of certain tax credits including New Market Tax Credits awarded to WesBanco Bank.
-- Total loans at June 30, 2008 decreased 1.7% compared to March 31, 2008 primarily due to the sale of five branches and reduced loan demand. However, a continued focus on maintaining appropriate interest margins on new loans, continuing efforts to maintain or improve credit quality, the Bank's strategy of reducing existing residential mortgage loans and selling most new residential mortgage loan originations also affected outstanding loan balances during the second quarter.
-- Total deposits at June 30, 2008 decreased 4.8% compared to March 31, 2008. The decrease was primarily in certificates of deposits and money market accounts as WesBanco attempted to aggressively reduce its cost of funds as market rates were falling. In addition, 35.1% of the decrease was due to the sale of the five branches.
-- At June 30, 2008, FHLB borrowings increased 14.5% from March 31, 2008. The average cost of these borrowings in the second quarter of 2008 was 2.76%, a 145 basis point decline from the average cost for the first quarter of 2008 and only eight basis points above the average cost of total interest bearing deposits in the 2008 second quarter. The Company has carefully managed deposit rates, particularly in markets where larger banks are aggressively pursuing higher cost CD's and MMDA's, and used more reasonably priced borrowings as part of its strategy to control the net interest margin.
-- Tangible equity to tangible assets increased from 5.96% at December 31, 2008 to 6.29% at the end of the first half of 2008. No shares were repurchased during the first six months of 2008. A total of 584,325 shares remain under the current board-approved repurchase authorization.
WesBanco is a multi-state bank holding company with total assets of approximately $5.3 billion, operating through 109 locations and 148 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 Statement
This press release contains certain forward-looking statements, including certain plans, expectations, goals, and projections, and including statements about the benefits of the merger between WesBanco and Oak Hill, which are subject to numerous assumptions, risks, and uncertainties. Actual results could differ materially from those contained or implied by such statements for a variety of factors including: the businesses of WesBanco and Oak Hill 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 may not be fully realized within the expected timeframes; disruption from the merger may make it more difficult to maintain relationships with clients, associates, or suppliers; changes in economic conditions; movements in interest rates; competitive pressures on product pricing and services; success and timing of other business strategies; the nature, extent, and timing of governmental actions and reforms; and extended disruption of vital infrastructure; and other factors described in WesBanco's 2007 Annual Report on Form 10-K and documents subsequently filed by WesBanco with the Securities and Exchange Commission, including WesBanco's Form 10-Q as of March 31, 2008. All forward-looking statements included in this news release are based on information available at the time of the release. WesBanco assumes no obligation to update any forward-looking statement.
WESBANCO, INC.
Consolidated Selected Financial Highlights
(unaudited, dollars in thousands, except per share amounts)
For the Three Months Ended
June 30,
Statement of income 2008 2007 % Change
Interest income $70,958 $57,812 22.74%
Interest expense 30,237 28,626 5.63%
Net interest income 40,721 29,186 39.52%
Provision for credit losses 5,723 1,776 222.24%
Net interest income after
provision for credit losses 34,998 27,410 27.68%
Non-interest income
Trust fees 3,939 3,885 1.39%
Service charges on deposits 6,472 4,431 46.06%
Net securities gains/(losses) 401 39 928.21%
Other income 4,063 5,097 (20.29%)
Total non-interest income 14,875 13,452 10.58%
Non-interest expense
Salaries and employee benefits 18,188 13,815 31.65%
Net occupancy 2,375 1,866 27.28%
Equipment 3,267 1,884 73.41%
Amortization of intangible assets 908 596 52.35%
Marketing expense 1,210 1,414 (14.43%)
Merger and restructuring expenses 1,658 - 100.00%
Other operating expenses 8,610 7,397 16.40%
Total non-interest expense 36,216 26,972 34.27%
Income before provision for
income taxes 13,657 13,890 (1.68%)
Provision for income taxes 2,373 1,595 48.78%
Net income $11,284 $12,295 (8.22%)
Taxable equivalent net interest income $42,619 $31,133 36.89%
Per common share data
Net income per common share - basic $0.42 $ 0.59 (28.81%)
Net income per common share - diluted $0.42 $ 0.59 (28.81%)
Dividends declared $0.28 $0.275 1.82%
Book value (period end)
Tangible book value (period end)
Average shares outstanding - basic 26,547,498 20,838,798 27.39%
Average shares outstanding - diluted 26,553,724 20,884,156 27.15%
Period end shares outstanding
Selected ratios
Return on average assets 0.87% 1.23% (29.24%)
Return on average equity 7.67% 12.12% (36.68%)
Yield on earning assets (1) 6.42% 6.60% (2.73%)
Cost of interest bearing liabilities 2.97% 3.61% (17.73%)
Net interest spread (1) 3.45% 2.99% 15.38%
Net interest margin (1) 3.75% 3.46% 8.38%
Efficiency (1) 62.99% 60.50% 4.12%
Average loans to average deposits 98.52% 94.88% 3.83%
Annualized net loan
charge-offs/average loans 0.45% 0.19% 136.73%
Effective income tax rate 17.38% 11.48% 51.36%
WESBANCO, INC.
Consolidated Selected Financial Highlights
(unaudited, dollars in thousands, except per share amounts)
For the Six Months Ended
June 30,
Statement of income 2008 2007 % Change
Interest income $145,651 $115,005 26.65%
Interest expense 66,342 55,826 18.84%
Net interest income 79,309 59,179 34.02%
Provision for credit losses 11,148 3,236 244.50%
Net interest income after
provision for credit losses 68,161 55,943 21.84%
Non-interest income
Trust fees 8,063 8,223 (1.95%)
Service charges on deposits 12,058 8,314 45.03%
Net securities gains/(losses) 906 717 (26.36%)
Other income 8,953 9,434 (5.10%)
Total non-interest income 29,980 26,688 12.34%
Non-interest expense
Salaries and employee benefits 36,789 27,693 32.85%
Net occupancy 5,342 3,869 38.07%
Equipment 5,650 3,786 49.23%
Amortization of intangible assets 1,921 1,192 61.16%
Marketing expense 2,380 2,036 16.90%
Merger and restructuring expenses 2,705 - 100.00%
Other operating expenses 17,943 14,781 21.39%
Total non-interest expense 72,730 53,357 36.31%
Income before provision for
income taxes 25,411 29,274 (13.20%)
Provision for income taxes 4,624 5,032 (8.11%)
Net income $20,787 $24,242 (14.25%)
Taxable equivalent net interest income $83,253 $63,138 31.86%
Per common share data
Net income per common share - basic $0.78 $ 1.15 (32.17%)
Net income per common share - diluted $0.78 $ 1.15 (32.17%)
Dividends declared $0.56 $ 0.55 1.82%
Book value (period end) $21.98 $19.54 12.48%
Tangible book value (period end) $11.79 $12.60 (6.41%)
Average shares outstanding - basic 26,547,286 21,053,868 26.09%
Average shares outstanding - diluted 26,556,832 21,103,429 25.84%
Period end shares outstanding 26,547,697 20,759,920 27.88%
Selected ratios
Return on average assets 0.79% 1.22% (34.95%)
Return on average equity 7.12% 11.94% (40.36%)
Yield on earning assets (1) 6.60% 6.60% 0.00%
Cost of interest bearing liabilities 3.22% 3.50% (8.00%)
Net interest spread (1) 3.38% 3.07% 10.10%
Net interest margin (1) 3.67% 3.52% 4.26%
Efficiency (1) 64.23% 59.40% 8.13%
Average loans to average deposits 97.64% 95.79% 1.94%
Annualized net loan
charge-offs/average loans 0.42% 0.21% 100.00%
Effective income tax rate 18.20% 17.19% 5.86%
(1) 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) % Change
Balance sheet June 30,
(period end) June 30, December 2008 to
Assets 2008 2007 % Change 2007 Dec. 31,
2007
Cash and due
from banks $187,018 $69,369 169.60% $130,219 43.62%
Fed Funds sold - - - 276 (100.00)
Securities 899,481 726,393 23.83 937,084 (4.01)
Loans held
for sale 6,443 6,778 (4.94) 39,717 (83.78)
Portfolio Loans:
Commercial and
commercial real
estate 2,183,088 1,560,506 39.90 2,188,216 (0.23)
Residential
real estate 908,524 841,512 7.96 975,151 (6.83)
Consumer and
home equity 543,819 427,780 27.13 557,182 (2.40)
Total portfolio
loans 3,635,431 2,829,798 28.47 3,720,549 (2.29)
Allowance for
loan losses (41,852) (31,928) 31.08 (38,543) 8.59
Net portfolio
loans 3,593,579 2,797,870 28.44 3,682,006 (2.40)
Premises and
equipment, net 95,825 68,496 39.90 94,143 1.79
Goodwill 254,834 137,258 85.66 257,199 (0.92)
Core deposit
intangible, net 15,570 6,698 132.46 19,531 (20.28)
Other assets 218,192 174,325 25.16 224,151 (2.66)
Total Assets $5,270,942 $3,987,187 32.20% $5,384,326 (2.11)%
Liabilities and
Shareholders'
Equity
Non-interest
bearing demand
deposits $524,529 $ 394,660 32.91% $519,287 1.01%
Interest bearing
demand deposits 433,723 351,233 23.49 416,470 4.14
Money market
accounts 537,004 381,281 40.84 612,089 (12.27)
Savings deposits 443,384 421,513 5.19 440,358 0.69
Certificates
of deposit 1,714,668 1,444,656 18.69 1,919,726 (10.68)
Total
deposits 3,653,308 2,993,343 22.05 3,907,930 (6.52)
Federal Home
Loan Bank
borrowings 529,863 265,119 99.86 405,798 30.57
Short-term
borrowings 353,755 197,871 78.78 329,515 7.36
Junior
subordinated
debt 111,055 87,638 26.72 111,024 0.03
Other
liabilities 39,489 37,665 4.84 49,740 (20.61)
Shareholders'
equity 583,472 405,551 43.87 580,319 0.54
Total
Liabilities and
Shareholders'
Equity $5,270,942 $3,987,187 32.20% $5,384,326 (2.11)%
Average balance sheet and
net interest margin analysis Three months ended June 30,
2008 2007
Average Average Average Average
Assets Balance Rate Balance Rate
Due from banks -
interest bearing $7,971 7.42% $1,466 2.19%
Loans, net of
unearned income 3,654,575 6.54% 2,832,325 6.85%
Securities:
Taxable 522,162 5.55% 408,187 5.01%
Tax-exempt 329,607 6.58% 332,504 6.69%
Total securities 851,769 5.94% 740,691 5.76%
Federal funds sold 8,218 2.19% 31,767 5.45%
Other earning assets (1) 29,256 6.08% 21,517 5.78%
Total earning assets 4,551,789 6.42% 3,627,766 6.60%
Other assets 663,014 383,209
Total Assets $5,214,803 $4,010,975
Liabilities and
Shareholders' Equity
Interest bearing
demand deposits $440,524 1.94% $357,780 1.37%
Money market accounts 494,812 0.88% 372,368 2.72%
Savings deposits 501,585 0.59% 428,268 1.34%
Certificates of deposit 1,772,779 3.96% 1,442,201 4.60%
Total interest bearing
deposits 3,209,700 2.68% 2,600,617 3.35%
Federal Home Loan Bank
borrowings 465,568 2.76% 327,172 4.08%
Short-term borrowings 297,255 5.23% 167,772 5.14%
Junior subordinated debt 111,053 6.33% 87,638 6.49%
Total interest bearing
liabilities 4,083,576 2.97% 3,183,199 3.61%
Non-interest bearing
demand deposits 499,875 384,435
Other liabilities 40,018 36,294
Shareholders' equity 591,334 407,047
Total Liabilities and
Shareholders' Equity $5,214,803 $4,010,975
Taxable equivalent net
interest spread 3.45% 2.99%
Taxable equivalent net
interest margin 3.75% 3.46%
Average balance sheet and
net interest margin analysis Six months ended June 30,
2008 2007
Average Average Average Average
Assets Balance Rate Balance Rate
Due from banks -
interest bearing $6,024 5.54% $1,388 2.18%
Loans, net of
unearned income 3,688,942 6.69% 2,848,651 6.84%
Securities:
Taxable 488,910 5.92% 400,049 4.94%
Tax-exempt 320,781 7.03% 337,519 6.70%
Total securities 809,691 6.36% 737,568 5.75%
Federal funds sold 19,732 2.70% 20,513 5.27%
Other earning assets (1) 28,898 5.52% 22,123 5.53%
Total earning assets 4,553,287 6.60% 3,630,243 6.60%
Other assets 714,084 387,402
Total Assets $5,267,371 $4,017,645
Liabilities and
Shareholders' Equity
Interest bearing
demand deposits $428,064 1.49% $350,598 1.29%
Money market accounts 439,449 2.07% 364,158 2.61%
Savings deposits 577,773 0.60% 433,870 1.36%
Certificates of deposit 1,840,031 4.26% 1,440,551 4.51%
Total interest bearing
deposits 3,285,317 2.96% 2,589,177 3.28%
Federal Home Loan Bank
borrowings 458,953 3.47% 338,639 3.95%
Short-term borrowings 288,997 4.43% 171,080 5.00%
Junior subordinated debt 111,039 6.54% 87,638 6.51%
Total interest bearing
liabilities 4,144,306 3.22% 3,186,534 3.53%
Non-interest bearing
demand deposits 492,648 384,636
Other liabilities 43,376 37,097
Shareholders' equity 587,041 409,378
Total Liabilities and
Shareholders' Equity $5,267,371 $4,017,645
Taxable equivalent net
interest spread 3.38% 3.07%
Taxable equivalent net
interest margin 3.67% 3.52%
(1) Federal Reserve stock, Federal Home Loan Bank stock and equity
securities that do not have readily determinable fair market values.
WESBANCO, INC.
Consolidated Selected Financial Highlights
(unaudited, dollars in thousands, except per share amounts)
Quarter Ended
Statement of June 30, Mar 31, Dec. 31, Sept. 30, June 30,
income 2008 2008 2007 2007 2007
Interest
income $70,958 $74,693 $63,928 $57,460 $57,812
Interest
expense 30,237 36,105 32,154 29,100 28,626
Net interest
income 40,721 38,588 31,774 28,360 29,186
Provision for
credit losses 5,723 5,425 3,832 1,448 1,776
Net interest
income after
provision for
credit losses 34,998 33,163 27,942 26,912 27,410
Non-interest
income
Trust fees 3,939 4,124 4,048 3,941 3,885
Service charges
on deposits 6,472 5,586 5,348 4,683 4,431
Net securities
gains 401 505 204 22 39
Other income 4,063 4,890 4,242 3,763 5,097
Total non-
interest
income 14,875 15,105 13,842 12,409 13,452
Non-interest
expense
Salaries and
employee
benefits 18,188 18,601 15,577 14,131 13,815
Net occupancy 2,375 2,967 2,098 2,002 1,866
Equipment 3,267 2,383 1,998 1,872 1,884
Core deposit
intangibles 908 1,013 704 589 596
Marketing
expense 1,210 1,170 1,115 1,331 1,414
Merger and
restructuring
expenses 1,658 1,047 635 - -
Other
operating
expenses 8,610 9,333 7,906 7,731 7,397
Total non-
interest
expense 36,216 36,514 30,033 27,656 26,972
Income before
provision for
income taxes 13,657 11,754 11,751 11,665 13,890
Provision for
income taxes 2,373 2,251 1,087 1,902 1,595
Net income $ 11,284 $9,503 $10,664 $9,763 $12,295
Taxable equivalent
net interest
income $42,619 $40,634 $33,752 $30,252 $31,133
Per common share data
Net income per
common share
- basic $0.42 $0.36 $0.47 $0.47 $0.59
Net income per
common share
- diluted $0.42 $0.36 $0.47 $0.47 $0.59
Dividends
declared $0.28 $0.28 $0.275 $0.275 $0.275
Book value
(period end) $21.98 $22.15 $21.86 $19.94 $19.54
Tangible book
value
(period end) $11.79 $11.81 $11.44 $12.99 $12.60
Average shares
outstanding
- basic 26,547,498 26,547,073 22,544,167 20,711,866 20,838,798
Average shares
outstanding
- diluted 26,553,724 26,556,614 22,551,781 20,732,741 20,884,156
Period end
shares
outstanding 26,547,697 26,547,073 26,547,073 20,628,092 20,759,920
Full time
equivalent
employees 1,539 1,566 1,562 1,177 1,191
Selected
ratios
Return on
average assets 0.87% 0.72% 0.96% 0.98% 1.23%
Return on
average equity 7.67% 6.55% 9.09% 9.51% 12.12%
Yield on
earning
assets (1) 6.42% 6.58% 6.63% 6.61% 6.60%
Cost of
interest
bearing
liabilities 2.97% 3.45% 3.65% 3.69% 3.61%
Net interest
spread (1) 3.45% 3.13% 2.98% 2.92% 2.99%
Net interest
margin (1) 3.75% 3.48% 3.40% 3.38% 3.46%
Efficiency (1) 62.99% 65.46% 63.10% 64.83% 60.50%
Average loans
to average
deposits 98.52% 96.74% 94.79% 94.81% 94.88%
Trust Assets,
market value
at period
end $2,921,768 $2,951,052 $3,084,145 $3,129,179 $3,041,464
(1) 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
June 30, Mar. 31, Dec. 31, Sept. 30, June 30,
Asset quality data 2008 2008 2007 2007 2007
Non-performing assets:
Non-accrual loans $29,660 $26,530 $19,857 $10,859 $9,651
Renegotiated loans - - - - -
Total non-
performing loans 29,660 26,530 19,857 10,859 9,651
Other real estate and
repossessed assets 2,751 3,457 3,998 3,483 4,067
Total non-performing
loans and assets $32,411 $29,987 $23,855 $14,342 $13,718
Loans past due 90 days
or more $15,213 $14,000 $11,546 $7,544 $7,869
Non-performing
assets/total assets 0.61% 0.57% 0.44% 0.36% 0.34%
Non-performing
assets/total loans,
other real estate and
repossessed assets 0.89% 0.82% 0.64% 0.51% 0.48%
Non-performing loans/
total loans 0.82% 0.72% 0.54% 0.39% 0.34%
Non-performing loans
and loans past due 90
days or more/total loans 1.23% 1.11% 0.85% 0.66% 0.62%
Non-performing loans,
loans past due 90 days
and other real estate
owned/total loans and
other real estate owned 1.29% 1.19% 0.95% 0.77% 0.75%
Allowance for
loan losses
Allowance for
loan losses $41,852 $40,234 $38,543 $31,647 $31,928
Provision for
loan losses 5,700 5,275 3,807 1,500 1,500
Net loan charge-offs 4,087 3,582 3,316 1,781 1,329
Annualized net
loan charge-offs/
average loans 0.45% 0.39% 0.41% 0.25% 0.19%
Allowance for
loan losses/total loans 1.15% 1.10% 1.04% 1.13% 1.13%
Allowance for
loan losses/
non-performing loans 1.41x 1.52x 1.94x 2.91x 3.31x
Allowance for
loan losses/
non-performing loans
and past due 90 days
or more 0.93x 0.99x 1.23x 1.72x 1.82x
Quarter Ended
June 30, Mar. 31, Dec. 31, Sept. 30, June 30,
2008 2008 2007 2007 2007
Capital ratios
Tier I leverage capital 8.54% 7.87% 8.27% 9.38% 9.21%
Tier I risk-based capital 10.99% 10.90% 10.50% 12.10% 11.98%
Total risk-based capital 12.09% 11.96% 11.49% 13.18% 13.07%
Shareholders' equity to
assets 11.34% 10.96% 10.35% 10.31% 10.15%
Tangible equity to
tangible assets (1) 6.29% 6.23% 5.96% 7.02% 6.81%
(1) Tangible equity is defined as shareholders' equity less goodwill and
other intangible assets, and tangible assets are defined as total
assets less goodwill and other intangible assets. The calculation is
based on period end balances.
SOURCE WesBanco, Inc.
Contact: Paul M. Limbert, President and Chief Executive Officer, or Robert H. Young, Executive Vice President and Chief Financial Officer, both of WesBanco, Inc., +1-304-234-9000