WesBanco Inc.
10/19/2005 | Press release | Archived content
WesBanco Announces Third Quarter Earnings
WHEELING, W.Va., Oct. 19 /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 third quarter and nine months ended September 30, 2005.
Net income for the third quarter ended September 30, 2005 was $9.9 million as compared to $10.0 million for the third quarter of 2004, while diluted earnings per share for the third quarter ended September 30, 2005 were $0.44 compared to $0.50 for the same period in 2004. The third quarter of 2005 included a pre-tax charge of approximately $1.0 million, or $0.03 after-tax per diluted share, relating to the previously announced restructuring of certain business lines. Net income for the nine months ended September 30, 2005 increased 10.5% to $32.2 million as compared to $29.2 million for the same period in 2004, while diluted earnings per share for the nine months ended September 30, 2005 were $1.42 compared to $1.47 for 2004. The 2005 third quarter and year to date results include Winton Financial Corporation ("Winton"), a $550 million thrift institution acquired on January 3, 2005 and Western Ohio Financial Corporation ("Western Ohio"), a $400 million savings bank acquired on August 31, 2004. The third quarter of 2004 includes one month of Western Ohio's results of operations.
"WesBanco made some intermediate and long-term decisions in the third quarter of 2005 that involved the restructuring of certain business lines within the company and the improvement of our banking center network. Our goal is to efficiently provide a high level of customer satisfaction while we create more value for our shareholders," Mr. Limbert stated. "Late in the third quarter WesBanco announced the sale of four branch offices located in Ritchie County, WV. The sale is scheduled to be consummated in early 2006. WesBanco also closed a loan production office and restructured certain business lines which resulted in the immediate reduction of its workforce through layoffs and provided for additional reductions through attrition. New banking centers are planned for Wheeling, WV, and in the Columbus, OH suburbs of Reynoldsburg and Bexley. We will consolidate five existing banking centers into just two locations through new structures that are to be built in Barnesville, OH and Marietta, OH. We will improve our efficiency while we offer an expanded variety of services. This phase of restructuring helps position the company for future growth and increased profitability," said Mr. Limbert.
Highlights for the three and nine month periods ended September 30, 2005:
- Net interest income for the third quarter and nine months ended
September 30, 2005 increased $5.3 million or 19.5% and $20.0 million or
25.0%, respectively, compared to the same periods in 2004. Net interest
margin for the third quarter and nine months ended September 30, 2005
was 3.46% and 3.49%, respectively compared to 3.52% and 3.63% for the
corresponding periods in 2004, with the decrease primarily due to the
acquired institutions having lower net interest margins than WesBanco,
as well as current market conditions. The anticipated increase in
market rates over the remainder of the year and into early 2006, as
well as other competitive factors may result in a tightening margin
over the near term.
- Non-interest income increased $0.6 million or 6.1% and $3.2 million or
12.2% over the third quarter and nine months ended September 30, 2004,
respectively. Both the third quarter and year to date increases for
2005, as compared to the same periods in 2004, were driven by increased
trust revenues, higher service charge revenue on deposit accounts due
to an increase in fees and an increase in the number of accounts,
including those from the acquisitions, and to a lesser extent, growth
in ATM and debit card transaction income. Net securities gains were
$0.1 million and $2.0 million for the third quarter and nine months
ended September 30, 2005, respectively, compared to $1.2 million and
$2.0 million for the same periods in 2004.
- WesBanco's provision for loan losses decreased $29 thousand or 1.3% and
increased $0.4 million or 8.0% over the third quarter and nine months
ended September 30, 2004, respectively. The increase for the year was
primarily the result of higher net charge-offs due to an increase in
consumer bankruptcies as individuals filed in advance of new bankruptcy
laws which became effective October 17, 2005. The allowance for loan
losses as a percentage of total loans was 1.11% at September 30, 2005,
down from 1.23% at September 30, 2004, due to the acquired institutions
having lower allowance percentages and a different portfolio
composition than WesBanco as of the acquisition dates.
- Non-interest expense increased $5.5 million or 24.8% and $17.5 million
or 27.1% compared to the third quarter and nine months ended September
30, 2004. Both period increases were primarily due to increased
staffing from the acquisitions, higher health care costs and overall
higher operating costs due to the Winton and Western Ohio acquisitions.
Included in the third quarter and nine month results was a pre-tax
charge of approximately $1.0 million in severance payouts and related
payroll taxes and health care costs relating to the restructuring. The
staff reductions resulting from the third quarter restructuring had a
minimal impact on non-interest expenses for the quarter. The
restructuring is anticipated to reduce certain non-interest expenses,
primarily salaries and employee benefits, beginning in October 2005 and
is expected to result in cost savings of approximately $2.5 million in
2006.
- The provision for income taxes for the third quarter of 2005 increased
$0.6 million or 26.7% compared to 2004, and on a year to date basis for
2005, increased $2.2 million or 32.1% compared to 2004. The increase
for both periods in 2005, compared to the same periods in 2004, was
primarily due to an increase in pretax income, and to a lesser extent,
the Winton and Western Ohio acquisitions which both had effective tax
rates approximating 33% prior to the respective merger. For the third
quarter of 2005, the effective tax rate was 21.8% compared to 17.8% for
the same period in 2004, while on a year to date basis for 2005, it was
21.6% compared to 18.7% for the same period in 2004.
- Total loans increased $447.2 million or 18.0% between December 31, 2004
and September 30, 2005. The increase was primarily due to the 2005
Winton acquisition, which added approximately $477 million to the loan
portfolio at the time of the merger and continued organic loan growth
in the commercial and commercial real estate categories, which was
partially offset by the sale of $67.8 million of residential mortgage
loans in June 2005. Loan growth in the third quarter of 2005, compared
to the second quarter of 2005, was slower than expected due to the
implementation of certain risk reduction strategies, as well as
disciplined underwriting and pricing practices to preserve credit
quality and improve targeted risk adjusted rates of return.
- Total deposits increased $313.4 million or 11.5% between December 31,
2004 and September 30, 2005 primarily due to the Winton acquisition. On
a linked quarter basis from the second quarter of 2005, increases
occurred in interest bearing demand deposits, savings and certificates
of deposit categories, which was offset by declines in non-interest
bearing demand and money market accounts. WesBanco has experienced a
continued decrease in money market accounts as customers seek higher
rates of return from certificates of deposit as well as other
competitive products in the markets served by WesBanco.
- For the quarter ended September 30, 2005, WesBanco repurchased a total
of 186,328 shares and on a year to date basis for 2005 a total of
1,149,191 shares have been repurchased. The average price paid on a
year to date basis for 2005 was $28.69 per share. WesBanco has 367,452
shares still remaining for repurchase under the current stock
repurchase plan approved by the Board in March 2005.
"Through our strategic and business planning processes, we will continue to analyze our business lines, product lines and overall corporate structure to continue to improve our efficiency, increase our profitability and provide higher shareholder value and returns. For the remainder of 2005, WesBanco will execute our previously announced restructuring plan and look to expand our presence in our new market areas. In the last quarter of the year, we will roll out a new marketing campaign that will energize the WesBanco brand around our customers' satisfaction with the overall WesBanco banking experience and new products and services," said Mr. Limbert.
WesBanco is a multi-state bank holding company with total assets of approximately $4.4 billion, currently operating through 85 banking offices, 1 loan production office, and 124 ATMs in West Virginia, Ohio, and Pennsylvania. 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 Form 10-Q for the prior quarter ended June 30, 2005, 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 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.
WESBANCO, INC.
Consolidated Selected Financial Highlights
(unaudited, dollars in thousands, except per share amounts)
For the Three Months Ended
September 30,
Statement of income 2005 2004 % Change
Interest income $56,231 $42,858 31.20%
Interest expense 23,643 15,585 51.70%
Net interest income 32,588 27,273 19.49%
Provision for loan losses 2,141 2,170 (1.34%)
Net interest income after
provision for loan losses 30,447 25,103 21.29%
Non-interest income
Trust fees 3,541 2,981 18.79%
Service charges on deposit accounts 2,834 2,462 15.11%
Net securities gains 141 1,219 (88.43%)
Other income 3,324 2,609 27.41%
Total non-interest income 9,840 9,271 6.14%
Non-interest expense
Salaries and employee benefits 14,420 11,876 21.42%
Net occupancy 1,844 1,336 38.02%
Equipment 2,018 1,897 6.38%
Core deposit intangibles 665 382 74.08%
Merger-related expenses (1) 15 200 (92.50%)
Restructuring expenses (2) 952 - 100.00%
Other operating 7,749 6,482 19.55%
Total non-interest expense 27,663 22,173 24.76%
Income before provision for
income taxes 12,624 12,201 3.47%
Provision for income taxes 2,754 2,173 26.74%
Net income $9,870 $10,028 (1.58%)
Taxable equivalent net interest income $35,111 $29,642 18.45%
Per common share data
Net income per common share - basic $0.44 $0.50 (11.32%)
Net income per common share - diluted $0.44 $0.50 (11.56%)
Dividends declared $0.26 $0.25 4.00%
Book value (period end)
Tangible book value (period end)
Average shares outstanding - basic 22,260,541 20,206,108 10.17%
Average shares outstanding - diluted 22,320,674 20,256,465 10.19%
Period end shares outstanding
Selected ratios
Return on average assets 0.88% 1.10% (19.92%)
Return on average equity 9.35% 11.88% (21.33%)
Yield on earning assets (3) 5.78% 5.37% 7.64%
Cost of interest bearing liabilities 2.59% 2.12% 22.17%
Net interest spread (3) 3.19% 3.25% (1.85%)
Net interest margin (3) 3.46% 3.52% (1.70%)
Efficiency (3) 61.54% 56.98% 8.00%
Average loans to average deposits 95.80% 87.29% 9.74%
Annualized net loan charge-
offs/average loans 0.27% 0.27% 0.00%
(1) merger-related expenses are primarily related to the acquisitions of
Winton Financial Corporation and Western Ohio Financial Corporation.
(2) restructuring costs associated with a reduction in workforce through
layoffs.
(3) 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)
For the Nine Months Ended
September 30,
Statement of income 2005 2004 % Change
Interest income $167,649 $122,710 36.62%
Interest expense 67,692 42,748 58.35%
Net interest income 99,957 79,962 25.01%
Provision for loan losses 5,903 5,466 7.99%
Net interest income after
provision for loan losses 94,054 74,496 26.25%
Non-interest income
Trust fees 10,767 9,722 10.75%
Service charges on deposit accounts 8,019 6,949 15.40%
Net securities gains 1,962 2,035 (3.59%)
Other income 8,563 7,418 15.44%
Total non-interest income 29,311 26,124 12.20%
Non-interest expense
Salaries and employee benefits 42,844 34,349 24.73%
Net occupancy 5,391 4,266 26.37%
Equipment 6,412 5,551 15.51%
Core deposit intangibles 2,013 956 110.56%
Merger-related expenses (1) 578 217 166.36%
Restructuring expenses (2) 952 - 100.00%
Other operating 24,095 19,415 24.11%
Total non-interest expense 82,285 64,754 27.07%
Income before provision for
income taxes 41,080 35,866 14.54%
Provision for income taxes 8,872 6,716 32.10%
Net income $32,208 $29,150 10.49%
Taxable equivalent net interest income $107,583 $87,001 23.66%
Per common share data
Net income per common share - basic $1.42 $1.47 (3.10%)
Net income per common share - diluted $1.42 $1.47 (3.33%)
Dividends declared $0.78 $0.75 4.00%
Book value (period end) $18.78 $17.59 6.79%
Tangible book value (period end) $12.12 $13.49 (10.19%)
Average shares outstanding - basic 22,610,703 19,802,210 14.18%
Average shares outstanding - diluted 22,664,922 19,854,885 14.15%
Period end shares outstanding 22,156,096 20,823,606 6.40%
Selected ratios
Return on average assets 0.95% 1.12% (14.84%)
Return on average equity 10.14% 11.97% (15.25%)
Yield on earning assets (3) 5.70% 5.41% 5.36%
Cost of interest bearing liabilities 2.45% 2.04% 20.10%
Net interest spread (3) 3.25% 3.37% (3.56%)
Net interest margin (3) 3.49% 3.63% (3.86%)
Efficiency (3) 60.11% 57.24% 5.01%
Average loans to average deposits 96.20% 82.24% 16.97%
Annualized net loan charge-
offs/average loans 0.22% 0.27% (18.85%)
(1) merger-related expenses are primarily related to the acquisitions of
Winton Financial Corporation and Western Ohio Financial Corporation.
(2) restructuring costs associated with a reduction in workforce through
layoffs.
(3) 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 % Change
Sept. 30, Dec. 31,
Balance sheet 2004 to 2004 to
(period end) Sept. 30, Sept. 30, Sept. 30, Dec. 31, Sept. 30,
Assets 2005 2004 2005 2004 2005
Cash and due from banks $79,638 $83,232 (4.32)% $93,611 (14.93)%
Due from banks -
Interest bearing 1,622 3,309 (50.98) 3,446 (52.93)
Federal funds sold - - - - -
Securities 1,079,910 1,144,606 (5.65) 1,172,182 (7.87)
Loans:
Commercial and
commercial
real estate 1,527,133 1,239,208 23.23 1,308,044 16.75
Residential real
estate 944,718 770,272 22.65 774,506 21.98
Consumer and home
equity 463,915 408,828 13.47 405,985 14.27
Total loans 2,935,766 2,418,308 21.40 2,488,535 17.97
Allowance for loan
losses (32,497) (29,694) 9.44 (29,486) 10.21
Net loans 2,903,269 2,388,614 21.55 2,459,049 18.06
Premises and equipment,
net 63,365 56,949 11.27 56,670 11.81
Goodwill 136,697 74,765 82.84 73,760 85.33
Core deposit intangible,
net 11,054 10,576 4.52 10,162 8.78
Other assets 146,880 140,600 4.47 142,519 3.06
Total Assets $4,422,435 $3,902,651 13.32 % $4,011,399 10.25 %
Liabilities and
Shareholders' Equity
Non-interest bearing
demand deposits $356,705 $343,790 3.76 % $355,364 0.38 %
Interest bearing
demand deposits 330,203 309,921 6.54 312,080 5.81
Money market accounts 481,999 616,492 (21.82) 587,523 (17.96)
Savings deposits 473,351 360,276 31.39 362,581 30.55
Certificates of
deposit 1,397,045 1,071,734 30.35 1,108,386 26.04
Total deposits 3,039,303 2,702,213 12.47 2,725,934 11.50
Federal Home Loan Bank
borrowings 636,634 563,860 12.91 599,411 6.21
Other borrowings 207,665 162,192 28.04 200,513 3.57
Junior subordinated debt 87,638 72,174 21.43 72,174 21.43
Other liabilities 35,020 35,909 (2.48) 43,186 (18.91)
Shareholders' equity 416,175 366,303 13.61 370,181 12.42
Total Liabilities and
Shareholders' Equity $4,422,435 $3,902,651 13.32 % $4,011,399 10.25 %
Average balance sheet and
net interest margin analysis Three months ended September 30,
2005 2004
Average Average Average Average
Assets Volume Rate Volume Rate
Due from banks - interest bearing $2,413 3.62% $2,760 1.15%
Loans, net of unearned income 2,931,165 6.08% 2,200,181 5.64%
Securities:
Taxable 685,244 3.88% 773,502 3.68%
Tax-exempt 423,286 6.81% 381,672 7.09%
Total securities 1,108,530 4.99% 1,155,174 4.81%
Federal funds sold 1,522 3.39% 1,266 1.01%
Total earning assets 4,043,630 5.78% 3,359,381 5.37%
Other assets 401,464 258,981
Total Assets $4,445,094 $3,618,362
Liabilities and Shareholders' Equity
Interest bearing demand deposits $328,441 0.59% $296,209 0.32%
Money market accounts 499,088 1.95% 572,630 1.71%
Savings deposits 470,014 0.83% 354,793 0.31%
Certificates of deposit 1,390,833 3.18% 972,452 2.84%
Total interest bearing deposits 2,688,376 2.23% 2,196,084 1.80%
Federal Home Loan Bank borrowings 648,272 3.44% 482,549 3.37%
Other borrowings 197,049 3.21% 175,905 1.36%
Junior subordinated debt 87,638 6.04% 72,174 5.42%
Total interest bearing
liabilities 3,621,335 2.59% 2,926,712 2.12%
Non-interest bearing demand deposits 371,412 324,542
Other liabilities 33,339 31,295
Shareholders' equity 419,008 335,813
Total Liabilities and
Shareholders' Equity $4,445,094 $3,618,362
Taxable equivalent net interest
spread 3.19% 3.25%
Taxable equivalent net interest
margin 3.46% 3.52%
Average balance sheet and
net interest margin analysis Nine months ended September 30,
2005 2004
Average Average Average Average
Assets Volume Rate Volume Rate
Due from banks - interest bearing $4,577 1.64% $2,690 0.95%
Loans, net of unearned income 2,952,946 5.99% 2,037,278 5.77%
Securities:
Taxable 729,328 3.88% 779,799 3.69%
Tax-exempt 422,644 6.87% 376,382 7.12%
Total securities 1,151,972 4.97% 1,156,181 4.81%
Federal funds sold 1,729 2.85% 5,355 0.97%
Total earning assets 4,111,224 5.70% 3,201,504 5.41%
Other assets 403,849 269,183
Total Assets $4,515,073 $3,470,687
Liabilities and Shareholders' Equity
Interest bearing demand deposits $329,723 0.47% $294,005 0.28%
Money market accounts 543,968 1.88% 565,111 1.68%
Savings deposits 454,725 0.67% 354,140 0.32%
Certificates of deposit 1,373,515 3.03% 943,311 2.82%
Total interest bearing deposits 2,701,931 2.09% 2,156,567 1.76%
Federal Home Loan Bank borrowings 687,471 3.38% 411,716 3.44%
Other borrowings 216,065 2.70% 177,316 1.30%
Junior subordinated debt 83,333 5.93% 46,886 5.49%
Total interest bearing
liabilities 3,688,800 2.45% 2,792,485 2.04%
Non-interest bearing demand deposits 367,787 320,667
Other liabilities 34,000 32,216
Shareholders' equity 424,486 325,319
Total Liabilities and
Shareholders' Equity $4,515,073 $3,470,687
Taxable equivalent net interest
spread 3.25% 3.37%
Taxable equivalent net interest
margin 3.49% 3.63%
WESBANCO, INC.
Consolidated Selected Financial Highlights
(unaudited, dollars in thousands, except per share amounts)
Quarter Ended
Sept. 30, June 30, March 31,
Statement of income 2005 2005 2005
Interest income $56,231 $56,534 $54,884
Interest expense 23,643 22,666 21,383
Net interest income 32,588 33,868 33,501
Provision for loan losses 2,141 1,919 1,843
Net interest income after
provision for loan losses 30,447 31,949 31,658
Non-interest income
Trust fees 3,541 3,512 3,714
Service charges on deposit accounts 2,834 2,723 2,462
Net securities gains 141 1,068 753
Other income 3,324 2,637 2,602
Total non-interest income 9,840 9,940 9,531
Non-interest expense
Salaries and employee benefits 14,420 14,528 13,896
Net occupancy 1,844 1,751 1,796
Equipment 2,018 2,190 2,204
Core deposit intangibles 665 685 663
Merger-related expenses (1) 15 70 493
Restructuring expenses (2) 952 - -
Other operating 7,749 8,269 8,077
Total non-interest expense 27,663 27,493 27,129
Income before income taxes 12,624 14,396 14,060
Provision for income taxes 2,754 3,138 2,980
Net income $9,870 $11,258 $11,080
Taxable equivalent net interest income $35,111 $36,448 $36,024
Per common share data
Net income per common share - basic $0.44 $0.50 $0.48
Net income per common share - diluted $0.44 $0.50 $0.48
Dividends declared $0.26 $0.26 $0.26
Book value (period end) $18.78 $18.82 $18.62
Tangible book value (period end) $12.12 $12.15 $12.08
Average shares outstanding - basic 22,260,541 22,587,213 22,992,398
Average shares outstanding - diluted 22,320,674 22,643,463 23,043,874
Period end shares outstanding 22,156,096 22,321,525 22,769,417
Full time equivalent employees 1,254 1,311 1,358
Selected ratios
Return on average assets 0.88% 0.99% 0.99%
Return on average equity 9.35% 10.66% 10.42%
Yield on earning assets (3) 5.78% 5.71% 5.60%
Cost of interest bearing liabilities 2.59% 2.44% 2.33%
Net interest spread (3) 3.19% 3.27% 3.27%
Net interest margin (3) 3.46% 3.52% 3.51%
Efficiency (3) 61.54% 59.27% 59.55%
Average loans to average deposits 95.80% 96.36% 96.44%
Trust Assets, market value at period
end $2,598,993 $2,557,916 $2,589,631
(1) merger-related expenses are primarily related to the acquisitions of
Winton Financial Corporation and Western Ohio Financial Corporation.
(2) restructuring costs associated with a reduction in workforce through
layoffs.
(3) 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)
Dec. 31, Sept. 30,
Statement of income 2004 2004
Interest income $46,727 $42,858
Interest expense 17,465 15,585
Net interest income 29,262 27,273
Provision for loan losses 2,269 2,170
Net interest income after
provision for loan losses 26,993 25,103
Non-interest income
Trust fees 3,334 2,981
Service charges on deposit
accounts 2,600 2,483
Net securities gains 733 1,219
Other income 2,750 2,588
Total non-interest income 9,417 9,271
Non-interest expense
Salaries and employee benefits 13,044 11,876
Net occupancy 1,496 1,336
Equipment 2,177 1,897
Core deposit intangibles 414 382
Merger-related expenses (1) 180 200
Restructuring expenses (2) - -
Other operating 7,807 6,482
Total non-interest expense 25,118 22,173
Income before income taxes 11,292 12,201
Provision for income taxes 2,260 2,173
Net income $9,032 $10,028
Taxable equivalent net interest income $31,652 $29,642
Per common share data
Net income per common share - basic $0.44 $0.50
Net income per common share - diluted $0.43 $0.50
Dividends declared $0.25 $0.25
Book value (period end) $17.77 $17.59
Tangible book value (period end) $13.74 $13.49
Average shares outstanding - basic 20,795,545 20,206,108
Average shares outstanding - diluted 20,871,212 20,256,465
Period end shares outstanding 20,837,469 20,823,606
Full time equivalent employees 1,209 1,229
Selected ratios
Return on average assets 0.92% 1.10%
Return on average equity 9.79% 11.88%
Yield on earning assets (3) 5.45% 5.37%
Cost of interest bearing liabilities 2.19% 2.12%
Net interest spread (3) 3.26% 3.25%
Net interest margin (3) 3.52% 3.52%
Efficiency (3) 61.16% 56.98%
Average loans to average deposits 89.80% 87.29%
Trust Assets, market value at period
end $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) restructuring costs associated with a reduction in workforce through
layoffs.
(3) 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
Sept. 30, June 30, March 31, Dec.31, Sept. 30,
Asset quality data 2005 2005 2005 2004 2004
Non-performing assets:
Non-accrual loans $9,812 $10,941 $8,476 $8,195 $7,685
Renegotiated loans - - - - -
Total non-performing
loans 9,812 10,941 8,476 8,195 7,685
Other real estate and
repossessed assets 1,929 2,525 2,497 2,059 1,986
Total non-performing
loans and assets $11,741 $13,466 $10,973 $10,254 $9,671
Loans past due 90 days
or more $8,411 $7,585 $8,032 $7,584 $6,262
Non-performing
assets/total assets 0.27 % 0.30 % 0.24 % 0.26 % 0.25 %
Non-performing
assets/total loans,
other real estate and
repossessed assets 0.40 % 0.46 % 0.37 % 0.41 % 0.40 %
Non-performing
loans/total loans 0.33 % 0.37 % 0.29 % 0.33 % 0.32 %
Non-performing loans
and loans past due 90
days or more/total loans 0.62 % 0.63 % 0.56 % 0.63 % 0.58 %
Allowance for loan
losses
Allowance for loan
losses $32,497 $32,348 $32,225 $29,486 $29,694
Provision for loan
losses $2,141 $1,919 $1,843 $2,269 $2,170
Net loan charge-offs 1,993 1,795 1,051 2,478 1,814
Annualized net loan
charge-offs /average
loans 0.27 % 0.24 % 0.14 % 0.40 % 0.33 %
Allowance for loan
losses/total loans 1.11 % 1.10 % 1.09 % 1.18 % 1.23 %
Allowance for loan
losses/non-performing
loans 3.31 x 2.96 x 3.80 x 3.60 x 3.86 x
Allowance for loan
losses/non-performing
loans and past due
90 days or more 1.78 x 1.75 x 1.95 x 1.87 x 2.13 x
Capital ratios
Tier I leverage capital 8.39 % 8.17 % 8.34 % 9.34 % 9.98 %
Tier I risk-based
capital 11.93 % 11.93 % 12.03 % 13.43 % 13.61 %
Total risk-based
capital 13.02 % 13.01 % 13.09 % 14.54 % 14.76 %
Shareholders' equity to
assets 9.43 % 9.34 % 9.30 % 9.23 % 9.39 %
Tangible equity to
tangible assets (1) 6.31 % 6.24 % 6.52 % 7.36 % 7.59 %
(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 quarterly averages.
WESBANCO, INC.
Reconciliation Table - Non-GAAP Financial Information
(unaudited, dollars in thousands, except per share amounts)
Note: This press release contains financial information other than that
provided by accounting principles generally accepted in the United States
of America ('GAAP'). The Company's management believes these Non-GAAP
measurements, which exclude the effects of merger-related and
restructuring expenses, are essential to a proper understanding of the
operating results of the Company's core business largely because they
allow investors to see clearly the performance of the Company without the
restructuring charges included in certain key financial ratios. These Non-
GAAP measurements are not a substitute for operating results determined in
accordance with GAAP nor do they necessarily conform to Non-GAAP
performance measures that may be presented by other companies. These Non-
GAAP measures should not be compared to Non-GAAP performance measures of
other companies.
For the Three For the Nine
Months Ended Months Ended
September 30, September 30,
2005 2004 2005 2004
Net income $9,870 $10,028 $32,208 $29,150
Add back: merger-related expenses, net
of tax (1) 9 120 347 130
Add back: restructuring expenses, net
of tax (1) 571 - 571 -
Core operating earnings $10,450 $10,148 $33,126 $29,280
Net income per common share - basic $0.44 $0.50 $1.42 $1.47
Effects of merger-related expenses,
net of tax (1) - - 0.02 0.01
Effects of restructuring expenses, net
of tax (1) 0.03 - 0.03 -
Core operating earnings per common
share - basic $0.47 $0.50 $1.47 $1.48
Net income per common share - diluted $0.44 $0.50 $1.42 $1.47
Effects of merger-related expenses,
net of tax (1) - - 0.01 -
Effects of restructuring expenses, net
of tax (1) 0.03 - 0.03 -
Core operating earnings per common
share - diluted $0.47 $0.50 $1.46 $1.47
Selected ratios
Return on average assets 0.88% 1.10% 0.95% 1.12%
Effects of merger-related expenses,
net of tax (1) 0.00% 0.02% 0.01% 0.01%
Effects of restructuring expenses, net
of tax (1) 0.05% - 0.02% -
Core return on average assets 0.93% 1.12% 0.98% 1.13%
Return on average equity 9.35% 11.88% 10.14% 11.97%
Effects of merger-related expenses,
net of tax (1) 0.00% 0.14% 0.14% 0.05%
Effects of restructuring expenses, net
of tax (1) 0.54% - 0.18% -
Core return on average equity 9.89% 12.02% 10.46% 12.02%
Efficiency ratio (2) 61.54% 56.98% 60.11% 57.24%
Effects of merger-related expenses -0.03% -0.51% -0.42% -0.19%
Effects of restructuring expenses -2.12% - -0.70% -
Core efficiency ratio 59.39% 56.47% 58.99% 57.05%
(1) The related income tax expense is calculated using a combined Federal
and State income tax rate of 40%.
(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.
SOURCE WesBanco, Inc.
-0- 10/19/2005
/CONTACT: Paul M. Limbert, President and Chief Executive Officer, or
Robert H. Young, Executive VP and Chief Financial Officer of WesBanco, Inc.,
+1-304-234-9000/
(WSBC)
CO: WesBanco, Inc.
ST: West Virginia, Ohio
IN: FIN INS
SU: ERN
JE-AK
-- CLW076 --
8360 10/19/200517:00 EDThttp://www.prnewswire.com