(Mark One) | ||
x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the quarterly period ended March 31, 2004 | ||
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the transition period from ____________ to ____________ | ||
Commission File Number0-8467 | ||
WESBANCO, INC. | ||
(Exact name of Registrant as specified in its charter) | ||
WEST VIRGINIA | 55-0571723 | |
State or other jurisdiction of | (IRS Employer Identification No.) | |
incorporation or organization) | ||
1 Bank Plaza, Wheeling, WV | 26003 | |
(Address of principal executive offices) | (Zip Code) | |
Registrant's telephone number, including area code: | 304-234-9000 |
Not Applicable | |
(Former name, former address and former fiscal year, if changed since last report) |
WESBANCO, INC. | ||
TABLE OF CONTENTS | ||
ITEM # | ITEM | PAGE NO. |
PART I | ||
1 | Financial Statements and Accompanying Notes | 3 - 11 |
2 | Management’s Discussion and Analysis of Financial | |
Condition and Results of Operations | 12 - 20 | |
3 | Quantitative and Qualitative Disclosures About Market Risk | 20 - 21 |
4 | Controls and Procedures | 22 |
PART II | ||
1 | Legal Proceedings | 22 |
2 | Changes in Securities and Use of Proceeds | 23 |
3 | Defaults Upon Senior Securities | 23 |
4 | Submission of Matters to a Vote of Security Holders | 23 |
5 | Other Information | 23 |
6(a) | Exhibits | 23 |
6(b) | Reports on Form 8-K | 24 |
Signatures | 25 | |
CONSOLIDATED BALANCE SHEETS | |||||||
(dollars in thousands, except per share amounts) | |||||||
March 31,2004 | December 31, 2003 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Cash and due from banks | $ | 68,193 | $ | 88,021 | |||
Due from banks–interest bearing | 3,835 | 3,189 | |||||
Federal funds sold | 13,000 | 17,000 | |||||
Securities: | |||||||
Held to maturity (fair values of$434,110and $449,746, respectively) | 415,997 | 434,226 | |||||
Available for sale, carried at fair value | 726,077 | 766,883 | |||||
Total securities | 1,142,074 | 1,201,109 | |||||
Loans held for sale | 765 | 1,741 | |||||
Total portfolio loans, net of unearned income | 1,948,949 | 1,931,797 | |||||
Allowance for loan losses | (26,802 | ) | (26,235 | ) | |||
Net portfolio loans | 1,922,147 | 1,905,562 | |||||
Premises and equipment | 52,623 | 53,232 | |||||
Accrued interest receivable | 18,054 | 18,247 | |||||
Goodwill | 49,868 | 49,868 | |||||
Core deposit intangible, net | 7,646 | 7,933 | |||||
Bank-owned life insurance | 66,679 | 66,001 | |||||
Other assets | 31,628 | 33,103 | |||||
Total Assets | $ | 3,376,512 | $ | 3,445,006 | |||
LIABILITIES | |||||||
Deposits: | |||||||
Non-interest bearing demand | $ | 317,095 | $ | 328,337 | |||
Interest bearing demand | 292,004 | 307,925 | |||||
Money market | 570,047 | 563,295 | |||||
Savings deposits | 353,206 | 352,324 | |||||
Certificates of deposit | 928,512 | 930,201 | |||||
Total deposits | 2,460,864 | 2,482,082 | |||||
Federal Home Loan Bank borrowings | 360,386 | 361,230 | |||||
Other borrowings | 152,077 | 217,754 | |||||
Junior subordinated debt | 30,936 | 30,936 | |||||
Total borrowings | 543,399 | 609,920 | |||||
Accrued interest payable | 5,490 | 5,793 | |||||
Other liabilities | 41,136 | 28,775 | |||||
Total Liabilities | 3,050,889 | 3,126,570 | |||||
SHAREHOLDERS' EQUITY | |||||||
Preferred stock, no par value; 1,000,000 shares authorized; none outstanding | — | — | |||||
Common stock ($2.0833 par value;50,000,000 shares authorized; | |||||||
21,319,348 shares issued) | 44,415 | 44,415 | |||||
Capital surplus | 52,994 | 52,900 | |||||
Retained earnings | 267,887 | 263,080 | |||||
Treasury stock (1,646,245 and 1,577,884 shares, respectively, at cost) | (40,588 | ) | (38,383 | ) | |||
Accumulated other comprehensive income (loss) | 2,344 | (1,864 | ) | ||||
Deferred benefits for directors and employees | (1,429 | ) | (1,712 | ) | |||
Total Shareholders' Equity | 325,623 | 318,436 | |||||
Total Liabilities and Shareholders' Equity | $ | 3,376,512 | $ | 3,445,006 | |||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||
(Unaudited, dollars in thousands, except per share amounts) | ||||||||||
For the Three Months Ended, March 31, | ||||||||||
2004 |
|
| 2003 | |||||||
INTEREST INCOME | ||||||||||
Loans, including fees | $ | 28,162 | $ | 28,747 | ||||||
Securities: | ||||||||||
Taxable | 7,294 | 8,597 | ||||||||
Tax-exempt | 4,351 | 4,464 | ||||||||
Total interest on securities | 11,645 | 13,061 | ||||||||
Federal funds sold | 24 | 97 | ||||||||
Total interest income | 39,831 | 41,905 | ||||||||
INTEREST EXPENSE | ||||||||||
Interest bearing demand deposits | 195 | 305 | ||||||||
Money market deposits | 2,336 | 2,898 | ||||||||
Savings deposits | 280 | 694 | ||||||||
Certificates of deposit | 6,533 | 8,716 | ||||||||
Total interest on deposits | 9,344 | 12,613 | ||||||||
Federal Home Loan Bank borrowings | 3,190 | 3,570 | ||||||||
Other borrowings | 541 | 605 | ||||||||
Junior subordinated debt | 429 | — | ||||||||
Trust preferred securities | — | 275 | ||||||||
Total interest expense | 13,504 | 17,063 | ||||||||
NET INTEREST INCOME | 26,327 | 24,842 | ||||||||
Provision for loan losses | 1,800 | 1,980 | ||||||||
Net interest income after provision for loan losses | 24,527 | 22,862 | ||||||||
NON-INTEREST INCOME | ||||||||||
Trust fees | 3,531 | 2,982 | ||||||||
Service charges on deposits | 3,013 | 2,696 | ||||||||
Bank-owned life insurance | 689 | 791 | ||||||||
Other income | 867 | 772 | ||||||||
Net securities gains | 661 | 1,006 | ||||||||
Total non-interest income | 8,761 | 8,247 | ||||||||
NON-INTEREST EXPENSE | ||||||||||
Salaries and wages | 8,586 | 7,960 | ||||||||
Employee benefits | 2,609 | 2,481 | ||||||||
Net occupancy | 1,569 | 1,491 | ||||||||
Equipment | 1,770 | 1,818 | ||||||||
Core deposit intangible amortization | 287 | 293 | ||||||||
Other operating | 6,314 | 6,012 | ||||||||
Total non-interest expense | 21,135 | 20,055 | ||||||||
Income before provision for income taxes | 12,153 | 11,054 | ||||||||
Provision for income taxes | 2,394 | 2,165 | ||||||||
NET INCOME | $ | 9,759 | $ | 8,889 | ||||||
Earnings per share - basic | $ | 0.49 | $ | 0.44 | ||||||
Earnings per share - diluted | $ | 0.49 | $ | 0.44 | ||||||
Average shares outstanding - basic | 19,719,934 | 20,366,287 | ||||||||
Average shares outstanding - diluted | 19,769,505 | 20,380,708 | ||||||||
Dividends per share | $ | 0.25 | $ | 0.24 |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY | |||||||||||||||||||||||||
(Unaudited, dollars in thousands, except per share amounts) | |||||||||||||||||||||||||
For the Three Months Ended March 31, | |||||||||||||||||||||||||
Accumulated | Deferred | ||||||||||||||||||||||||
| Other | Benefits for | |||||||||||||||||||||||
| Common Stock | Capital | Retained | Treasury | Comprehensive | Directors & | |||||||||||||||||||
Shares | Amount | Surplus | Earnings | Stock | Income | Employees | Total | ||||||||||||||||||
December 31, 2002 | 20,461,745 | $44,415 | $52,855 | $246,148 | $(20,482) | $4,305 | $(2,070) | $325,171 | |||||||||||||||||
Net income | 8,889 | 8,889 | |||||||||||||||||||||||
Change in accumulated | |||||||||||||||||||||||||
other comprehensive income | (1,995) | (1,995) | |||||||||||||||||||||||
Comprehensive income | 6,894 | ||||||||||||||||||||||||
Cash dividends: Common ($.24 per share) | (4,868) | (4,868) | |||||||||||||||||||||||
Treasury shares purchased | (282,893) | (6,755) | (6,755) | ||||||||||||||||||||||
Treasury shares sold | 23,226 | 13 | 558 | 571 | |||||||||||||||||||||
Deferred benefits for directors – net | — | — | |||||||||||||||||||||||
March 31, 2003 | 20,202,078 | $44,415 | $52,868 | $250,169 | $(26,679) | $2,310 | $(2,070) | $321,013 | |||||||||||||||||
December 31, 2003 | 19,741,464 | $44,415 | $52,900 | $263,080 | $(38,383) | $(1,864) | $(1,712) | $318,436 | |||||||||||||||||
Net income | 9,759 | 9,759 | |||||||||||||||||||||||
Change in accumulated | |||||||||||||||||||||||||
other comprehensive income | 4,208 | 4,208 | |||||||||||||||||||||||
Comprehensive income | 13,967 | ||||||||||||||||||||||||
Cash dividends: Common ($.25 per share) | (4,952) | (4,952) | |||||||||||||||||||||||
Treasury shares purchased | (106,874) | (3,124) | (3,124) | ||||||||||||||||||||||
Treasury shares sold | 38,513 | 94 | 919 | 1,013 | |||||||||||||||||||||
Deferred benefits for directors – net | 283 | 283 | |||||||||||||||||||||||
March 31, 2004 | 19,673,103 | $44,415 | $52,994 | $267,887 | $(40,588) | $2,344 | $(1,429) | $325,623 | |||||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||
(Unaudited, in thousands) | |||||||||||||
For the Three Months Ended March 31, | |||||||||||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 2004 |
|
| 2003 | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||
Net income | $ | 9,759 | $ | 8,889 | |||||||||
Adjustments to reconcile net income to net cash | |||||||||||||
provided by operating activities: | |||||||||||||
Depreciation | 1,448 | 1,457 | |||||||||||
Net amortization | 896 | 565 | |||||||||||
Provision for loan losses | 1,800 | 1,980 | |||||||||||
Gains on sales of securities – net | (661 | ) | (1,006 | ) | |||||||||
Gains on sales of loans – net | (67 | ) | (150 | ) | |||||||||
Deferred income taxes | (609 | ) | (106 | ) | |||||||||
Increase in cash surrender value of bank-owned life insurance | (678 | ) | (776 | ) | |||||||||
Loans originated for sale | (3,387 | ) | (10,215 | ) | |||||||||
Proceeds from the sale of loans originated for sale | 4,430 | 10,080 | |||||||||||
Other – net | (101 | ) | 43 | ||||||||||
Net change in: | |||||||||||||
Other assets and interest receivable | 644 | (5,020 | ) | ||||||||||
Other liabilities and interest payable | 11,736 | 16,371 | |||||||||||
Net cash provided by operating activities | 25,210 | 22,112 | |||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||
Securities held to maturity: | |||||||||||||
Proceeds from maturities, prepayments and calls | 20,704 | 30,680 | |||||||||||
Payments for purchases | (2,674 | ) | (4,708 | ) | |||||||||
Securities available for sale: | |||||||||||||
Proceeds from sales | 49,622 | 48,786 | |||||||||||
Proceeds from maturities, prepayments and calls | 47,829 | 121,038 | |||||||||||
Payments for purchases | (50,613 | ) | (211,111 | ) | |||||||||
Increase in loans | (18,386 | ) | (6,339 | ) | |||||||||
Purchases of premises and equipment – net | (818 | ) | (1,230 | ) | |||||||||
Net cash provided by (used in) investing activities | 45,664 | (22,884 | ) | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||
Increase (decrease) in deposits | (20,998 | ) | 56,149 | ||||||||||
Decrease in Federal Home Loan Bank borrowings | (518 | ) | (154 | ) | |||||||||
Decrease in other borrowings | (55,676 | ) | (5,584 | ) | |||||||||
Decrease in federal funds purchased | (10,000 | ) | — | ||||||||||
Dividends paid | (4,753 | ) | (4,834 | ) | |||||||||
Treasury shares purchased – net | (2,111 | ) | (6,184 | ) | |||||||||
Net cash provided by (used in) financing activities | (94,056 | ) | 39,393 | ||||||||||
Net increase (decrease) in cash and cash equivalents | (23,182 | ) | 38,621 | ||||||||||
Cash and cash equivalents at beginning of period | 108,210 | 81,085 | |||||||||||
Cash and cash equivalents at end of period | $ | 85,028 | $ | 119,706 | |||||||||
SUPPLEMENTAL DISCLOSURES: | |||||||||||||
Interest paid on deposits and other borrowings | $ | 13,806 | $ | 17,582 | |||||||||
Income taxes paid | 1,110 | 200 | |||||||||||
Transfers of loans to other real estate owned | 231 | 620 | |||||||||||
Commitments to purchase investment securities | 9,997 | 9,050 | |||||||||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
(Unaudited, in thousands, except per share amounts) | |||||
For the Three Months Ended March 31, | |||||
2004 | 2003 | ||||
Net income as reported | $9,759 | $8,889 | |||
Stock based compensation expense under fair value based method – net of tax(1) | (50) | (132 | ) | ||
Pro forma net income | $9,709 | $8,757 | |||
Earnings per share as reported - basic | $0.49 | $0.44 | |||
Earnings per share as reported - diluted | $0.49 | $0.44 | |||
Pro forma earnings per share - basic | $0.49 | $0.43 | |||
Pro forma earnings per share - diluted | $0.49 | $0.43 | |||
1)Assumes expense is amortized over a three year vesting period |
Community Banking | Trust and Investment Services | Consolidated | |
(Unaudited, in thousands) | |||
For the three months ended March 31, 2004: | |||
Net interest income | $26,327 | — | $26,327 |
Provision for loan losses | 1,800 | — | 1,800 |
Non-interest income | 5,230 | $3,531 | 8,761 |
Non-interest expense | 19,115 | 2,020 | 21,135 |
Provision for income taxes | 1,790 | 604 | 2,394 |
Net income | $ 8,852 | $ 907 | $ 9,759 |
For the three months ended March 31, 2003: | |||
Net interest income | $24,842 | — | $24,842 |
Provision for loan losses | 1,980 | — | 1,980 |
Non-interest income | 5,265 | $2,982 | 8,247 |
Non-interest expense | 18,100 | 1,955 | 20,055 |
Provision for income taxes | 1,754 | 411 | 2,165 |
Net income | $ 8,273 | $ 616 | $ 8,889 |
Year | Amount | |
Remainder of 2004 | $867 | |
2005 | 957 | |
2006 | 802 | |
2007 | 677 | |
2008 | 573 | |
For the Three Months Ended March 31, | |||
(Unaudited, in thousands) | 2004 | 2003 | |
Net Income | $ 9,759 | $ 8,889 | |
Securities available for sale: | |||
Net change in unrealized gains (losses) on securities available for sale | 8,069 | (2,399) | |
Related income tax (expense) benefit(1) | (3,187) | 948 | |
Net securities (gains) losses reclassified into earnings | (661) | (1,005) | |
Related income tax expense (benefit)(1) | 261 | 397 | |
Net effect on other comprehensive income for the period | 4,482 | (2,059) | |
Cash flow hedge derivatives: | |||
Net change in unrealized gains (losses) on derivatives | (411) | 154 | |
Related income tax (expense) benefit(1) | 162 | (61) | |
Net derivative (gains) losses reclassified into earnings | (42) | (48) | |
Related income tax expense (benefit)(1) | 17 | 19 | |
Net effect on other comprehensive income for the period | (274) | 64 | |
Total change in other comprehensive income (loss) | 4,208 | (1,995) | |
Comprehensive income | $13,967 | $ 6,894 | |
(Unaudited, in thousands) | Minimum Pension Liability | Unrealized Gains (Losses) on Securities Available for Sale | Net Unrealized Gains (Losses) on Derivative Instruments Used in Cash Flow Hedging Relationships | Total |
Balance, December 31, 2002 | $(2,955) | $10,337 | $(3,077) | $ 4,305 |
Period change, net of tax | — | (2,059) | 64 | (1,995) |
Balance, March 31, 2003 | $(2,955) | $ 8,278 | $(3,013) | $ 2,310 |
Balance, December 31, 2003 | — | $ 561 | $(2,425) | $(1,864) |
Period change, net of tax | — | 4,482 | (274) | 4,208 |
Balance, March 31, 2004 | — | $ 5,043 | $(2,699) | $ 2,344 |
Trust | Junior | Stated | Optional | ||
Preferred | Common | Subordinated | Maturity | Redemption | |
(Unaudited, in thousands) | Securities | Securities | Debt | Date | Date |
WesBanco, Inc. Capital Trust II(1) | $13,000 | $410 | $13,410 | 6/30/2033 | 6/30/2008 |
WesBanco, Inc. Capital Statutory Trust III(2) | 17,000 | 526 | 17,526 | 6/26/2033 | 6/26/2008 |
Total trust preferred securities | $30,000 | $936 | $30,936 | ||
(Unaudited, in thousands) | For the Three Months Ended March 31, | |||
2004 | 2003 | |||
Service cost– benefits earned during year | $515 |
| $363 | |
Interest cost on projected benefit obligation | 652 | 599 | ||
Expected return on plan assets | (729) | (590) | ||
Net amortization and recognized loss | 175 |
| 184 | |
Net periodic pension cost | $613 | $556 | ||
|
Employer Contributions | Amount | |
2004 | $1,979 | |
Three Months ended March 31, | |||||||||
2004 | 2003 | ||||||||
Average | Average | Average | Average | ||||||
(dollars in thousands) | Volume | Rate | Volume | Rate | |||||
ASSETS | |||||||||
Loans, net of unearned income(1) | $1,927,964 | 5.87% | $1,816,433 | 6.42% | |||||
Securities:(2) | |||||||||
Taxable | 790,164 | 3.69 | 785,351 | 4.38 | |||||
Tax-exempt(3) | 375,284 | 7.13 | 371,797 | 7.39 | |||||
Total securities | 1,165,448 | 4.80 | 1,157,148 | 5.35 | |||||
Federal funds sold | 10,476 | 0.92 | 33,180 | 1.17 | |||||
Total earning assets(3) | 3,103,888 | 5.45% | 3,006,761 | 5.95% | |||||
Other assets | 270,001 | 286,997 | |||||||
Total assets | $3,373,889 | $3,293,758 | |||||||
LIABILITIES AND | |||||||||
SHAREHOLDERS' EQUITY | |||||||||
Interest bearing demand deposits | $ 293,956 | 0.27% | $ 276,748 | 0.45% | |||||
Money market | 564,266 | 1.67 | 514,607 | 2.28 | |||||
Savings deposits | 351,748 | 0.32 | 358,244 | 0.79 | |||||
Certificates of deposit | 930,399 | 2.82 | 972,013 | 3.64 | |||||
Total interest bearing deposits | 2,140,369 | 1.76 | 2,121,612 | 2.41 | |||||
Federal Home Loan Bank borrowings | 357,757 | 3.59 | 342,670 | 4.22 | |||||
Other borrowings | 175,957 | 1.24 | 167,715 | 1.46 | |||||
Trust preferred securities and junior | |||||||||
subordinated debt | 30,936 | 5.58 | 12,650 | 8.70 | |||||
Total interest bearing liabilities | 2,705,019 | 2.01% | 2,644,647 | 2.62% | |||||
Non-interest bearing demand deposits | 315,015 | 290,300 | |||||||
Other liabilities | 33,023 | 35,098 | |||||||
Shareholders' equity | 320,832 | 323,713 | |||||||
Total liabilities and shareholders’ equity | $3,373,889 | $3,293,758 | |||||||
Net interest spread | 3.44% | 3.33% | |||||||
Taxable equivalent net interest margin(3) | 3.71% | 3.65% | |||||||
Three Months Ended March 31, 2004 Compared to March 31, 2003 | ||||||
(in thousands) | Net Increase | |||||
Volume | Rate | (Decrease) | ||||
Increase (decrease) in interest income: | ||||||
Loans, net of unearned income | $33,131 | $(33,716) | $ (585) | |||
Taxable securities | 1,573 | (2,876) | (1,303) | |||
Tax-exempt securities(2) | 1,595 | (1,708) | (113) | |||
Federal funds sold | (55) | (18) | (73) | |||
Total interest income change | 36,244 | (38,318) | (2,074) | |||
Increase (decrease) in interest expense: | ||||||
Interest bearing demand deposits | 521 | (631) | (110) | |||
Money market | 6,580 | (7,142) | (562) | |||
Savings deposits | (12) | (402) | (414) | |||
Certificates of deposit | (351) | (1,832) | (2,183) | |||
Federal Home Loan Bank borrowings | 3,863 | (4,243) | (380) | |||
Other borrowings | 721 | (785) | (64) | |||
Trust preferred securities and junior subordinated debt | 2,666 | (2,512) | 154 | |||
Total interest expense change | 13,988 | (17,547) | (3,559) | |||
Net interest income increase (decrease)(2) | $22,256 | $(20,771) | $1,485 | |||
TABLE 3: Reconciliation of Income Tax Rates | For the Three Months Ended March 31, | |||
2004 | 2003 | |||
Federal statutory tax rate | 35.0 | % | 35.0 | % |
Tax-exempt interest income on securities of state and political subdivisions-net | (12.4 | ) | (13.7 | ) |
State income taxes, net of federal tax effect | 1.2 | 1.5 | ||
Bank-owned life insurance | (2.0 | ) | (2.5 | ) |
All other – net | (2.1 | ) | (0.7 | ) |
Effective tax rate | 19.7 | % | 19.6 | % |
TABLE 4: Composition of Securities | ||
March 31, | December 31, | |
(in thousands) | 2004 | 2003 |
Securities held to maturity (at amortized cost): | ||
U.S. Treasury and Federal Agency securities | $ 32,010 | $ 39,574 |
Obligations of states and political subdivisions(1) | 359,393 | 369,816 |
Other debt securities | 24,594 | 24,836 |
Total securities held to maturity | 415,997 | 434,226 |
Securities available for sale (at fair value): | ||
U.S. Treasury and Federal Agency securities | 375,669 | 387,419 |
Obligations of states and political subdivisions(1) | 21,885 | 17,944 |
Mortgage-backed securities | 319,221 | 348,080 |
Corporate and other securities(2) | 9,302 | 13,440 |
Total securities available for sale | 726,077 | 766,883 |
Total securities | $1,142,074 | $1,201,109 |
TABLE 5: Composition of Loans | March 31, | Percent of | December 31, | Percent of | |||
(dollars in thousands) | 2004 | Total | 2003 | Total | |||
Commercial | $ 363,640 | 18.7 | % | $ 369,786 | 19.1 | % | |
Commercial real estate | 648,638 | 33.3 | 623,243 | 32.2 | |||
Residential real estate | 574,693 | 29.5 | 577,362 | 29.9 | |||
Home equity | 114,038 | 5.8 | 111,981 | 5.8 | |||
Consumer | 247,940 | 12.7 | 249,425 | 12.9 | |||
Total portfolio loans | 1,948,949 | 100.0 | 1,931,797 | 99.9 | |||
Loans held for sale | 765 | - | 1,741 | 0.1 | |||
Total Loans | $ 1,949,714 | 100.0 | % | $ 1,933,538 | 100.0 | % | |
March 31, | December 31, | ||
(dollars in thousands) | 2004 | 2003 | |
Non-accrual loans | $9,158 | $ 8,262 | |
Renegotiated loans | 651 | 653 | |
Total non-performing loans | 9,809 | 8,915 | |
Other real estate owned and repossessed assets | 2,493 | 2,907 | |
Total non-performing assets | 12,302 | 11,822 | |
Other impaired loans | 5,881 | 6,031 | |
Total non-performing assets and other impaired loans | $18,183 | $17,853 | |
Loans past due 90 days or more | $ 5,041 | $ 7,795 | |
Non-performing loans as a percentage of total loans | 0.50% | 0.46% | |
Non-performing assets as a percentage of total assets | 0.36 | 0.34 | |
Non-performing assets as a percentage of total loans, other real estate owned and repossessed assets | 0.63 | 0.61 | |
Non-performing loans and loans 90 days or more past due as a percentage of total loans | 0.76 | 0.86 | |
For the Three Months Ended March 31, | |||
(dollars in thousands) | 2004 | 2003 | |
Balance, at beginning of period | $26,235 | $25,080 | |
Charge-offs: | |||
Commercial | (244) | (227) | |
Commercial real estate | (93) | (117) | |
Residential real estate | (13) | (108) | |
Home equity | (3) | — | |
Consumer | (1,169) | (1,245) | |
Total charge-offs | (1,522) | (1,697) | |
Recoveries: | |||
Commercial | 29 | 40 | |
Commercial real estate | 2 | — | |
Residential real estate | 6 | 5 | |
Home equity | — | — | |
Consumer | 252 | 108 | |
Total recoveries | 289 | 153 | |
Net loan charge-offs | (1,233) | (1,544) | |
Provision for loan losses | 1,800 | 1,980 | |
Balance, at end of period | $26,802 | $25,516 | |
Annualized net loan charge-offs to average loans outstanding | 0.26% | 0.34% | |
Allowance for loan losses to total loans | 1.37 | 1.40 | |
Allowance for loan losses to total non-performing loans | 2.73x | 2.22x | |
Allowance for loan losses to total non-performing loans and Loans past due 90 days or more | 1.80x | 1.25x | |
(dollars in thousands) | March 31, | Percent of | December 31, | Percent of | ||
2004 | Total | 2003 | Total | |||
Commercial | $ 9,236 | 34.5 | % | $ 9,852 | 37.6 | % |
Commercial real estate | 12,307 | 45.9 | 10,660 | 40.6 | ||
Residential real estate | 576 | 2.1 | 749 | 2.9 | ||
Home equity | 216 | 0.8 | 223 | 0.8 | ||
Consumer | 4,467 | 16.7 | 4,751 | 18.1 | ||
Total allowance for loan losses | $26,802 | 100.0 | % | $26,235 | 100.0 | % |
TABLE 9: FHLB Maturities: | Scheduled | Weighted |
Year | Maturity | Average Rate |
2004 | $ 29,900 | 1.66% |
2005 | 64,883 | 2.74 |
2006 | 45,009 | 2.77 |
2007 | 98,253 | 3.05 |
2008 | — | — |
2009 and thereafter | 122,341 | 4.57 |
Total | $360,386 | 3.36% |
TABLE 10: Other Borrowed Funds: | ||
(in thousands) | March 31, | December 31, |
2004 | 2003 | |
Federal funds purchased | $ — | $ 10,000 |
Securities sold under agreements to repurchase | 147,924 | 169,937 |
Treasury tax and loan notes and other | 3,153 | 37,817 |
Revolving line of credit, parent company | 1,000 | — |
Total | $152,077 | $217,754 |
March 31, 2004 | December 31, 2003 | |||||
(dollars in thousands) | Minimum(1) | Well Capitalized(2) | Amount | Ratio | Amount | Ratio |
WesBanco, Inc. |
| |||||
Tier 1 Leverage | N/A | N/A | $295,752 | 8.92% | $292,487 | 8.76% |
Tier 1 Capital to Risk-Weighted Assets | N/A | N/A | 295,752 | 13.49 | 292,487 | 13.31 |
Total Capital to Risk-Weighted Assets | N/A | N/A | 322,554 | 14.71 | 318,723 | 14.50 |
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WesBanco Bank, Inc. |
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Tier 1 Leverage | 4.0% | 5.0% | $284,447 | 8.61% | $273,729 | 8.23% |
Tier 1 Capital to Risk-Weighted Assets | 4.0% | 6.0% | 284,447 | 13.04 | 273,729 | 12.51 |
Total Capital to Risk-Weighted Assets | 8.0% | 10.0% | 311,246 | 14.27 | 299,960 | 13.71 |
Percentage Change in | |||
Net Interest Income from Base | |||
Change in Interest Rates | ALCO | ||
(basis points) | March 31, 2004 | December 31, 2003 | Guidelines |
+ 200 | -2.48% | -3.04% | +/- 5.0% |
+ 100 | 0.34% | -0.39% | - |
Flat | - | - | N/A |
-100 | -1.66% | -1.59% | N/A |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plan | Maximum Number of Shares that May Yet Be Purchased Under the Plan |
Balance remaining at December 31, 2003 | 661,117 | |||
January 1, 2004 to January 31, 2004 | 6,700 | $27.86 | 6,700 | 654,417 |
February 1, 2004 to February 29, 2004 | 89,174 | 29.14 | 89,174 | 565,243 |
March 1, 2004 to March 31, 2004 | 11,000 | 30.80 | 11,000 | 554,243 |
Total | 106,874 | $29.23 | 106,874 | |
For | Withheld | ||
James E. Altmeyer | 14,670,365 | 304,733 | |
Christopher V. Criss | 14,678,085 | 297,013 | |
Vaughn L. Kiger | 14,855,737 | 119,361 | |
Robert E. Kirkbride | 14,859,429 | 115,669 | |
Paul M. Limbert | 14,837,347 | 137,751 |
2.1 | Agreement and Plan of Merger dated April 1, 2004, by and between WesBanco, Inc., WOFC, Inc. and Western Ohio Financial Corporation. |
31.1 | Chief Executive Officer’s Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.2 | Chief Financial Officer’s Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
32.1 | Chief Executive Officer’s and Chief Financial Officer’s Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
WESBANCO, INC. | ||
Date: May 10, 2004 | /s/ Paul M. Limbert | |
Paul M. Limbert | ||
President and Chief Executive Officer | ||
Date: May 10, 2004 | /s/Robert H. Young | |
Robert H. Young | ||
Executive Vice President and Chief Financial Officer | ||