NEWS FOR IMMEDIATE RELEASE
April 20, 2005 For Further Information Contact:
Paul M. Limbert
President & Chief Executive Officer
or
Robert H. Young
Executive VP & Chief Financial Officer
(304) 234-9000
NASDAQ Trading Symbol: WSBC
Website: www.wesbanco.com
WesBanco Announces a 13.5% Increase in First Quarter 2005 Net Income
Wheeling, WV…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 websitewww.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.
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See attached financial highlights.
