EXHIBIT 99
NEWS FOR IMMEDIATE RELEASE
July 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 Higher Second 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 second quarter and six months ended June 30, 2005.
Net income for the second quarter ended June 30, 2005 increased 20.2% to $11.3 million as compared to $9.4 million for the second quarter of 2004, while diluted earnings per share for the second quarter ended June 30, 2005 were $0.50 compared to $0.48 for the same period in 2004, an increase of 4.2%. Net income for the six months ended June 30, 2005 increased 16.8% to $22.3 million as compared to $19.1 million for the same period in 2004, while diluted earnings per share for the six months ended June 30, 2005 were $0.98 compared to $0.97 for 2004. The 2005 second quarter and the 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.
"WesBanco’s second quarter and first half of 2005 results showed strong gains given the acquisitions completed in the prior periods and were led by growth in most categories of net interest income and non-interest income," Mr. Limbert stated. "Our balance sheet growth continues to be led by loan growth, primarily in the commercial and commercial real estate categories. New loan volume for the second quarter of 2005 increased in all loan categories on a linked quarter basis from the first quarter of 2005. While loan growth is crucial to the success of any financial institution, credit quality is equally important, with most ratios showing improvement over the same periods in 2004," said Mr. Limbert.
Highlights for the three and six month periods ended June 30, 2005:
| · | Net interest income for the second quarter and first half of 2005 increased $7.5 million or 28.5% and $14.7 million or 27.9%, respectively, compared to the same periods in 2004. The net interest margin for the second quarter and first half of 2005 was 3.52% and 3.51%, respectively compared to 3.67% and 3.69% 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 net interest margin for the second quarter of 2005 remained approximately the same on a linked quarter basis from 3.51% for the first quarter of 2005. WesBanco’s net interest margin has held at the same level over the past few quarters, despite significant short-term rate increases, as core deposit rates have lagged the increases in short-term interest rates; however, with market rates anticipated to further increase over the course of the year, competitive factors may result in further margin compression. |
| · | Non-interest income increased $1.8 million or 22.8% and $2.6 million or 15.5% over the second quarter and first half of 2004, with both periods driven by higher service charge revenue on deposit accounts due to an increase in the number of accounts primarily from the acquisitions, growth in ATM and debit card transaction income and to a lesser extent, an increase in trust revenues. Net securities gains were $1.1 million and $1.8 million for the second quarter and first half of 2005, respectively, which included a $0.7 million gain on the disposition of an equity security, as previously disclosed in a Form 8-K, compared to $0.2 million and $0.8 million for the same periods in 2004. In June 2005, WesBanco sold approximately $67.8 million of 1-4 family, fixed rate residential mortgage loans, with mortgage servicing rights retained, from its existing loan portfolio, at no significant gain or loss. The sale was completed in order to reduce exposure to potential rising interest rates and to improve the company’s asset/liability position. |
| · | WesBanco’s provision for loan losses increased $0.4 million or 28.3% and $0.5 million or 14.1% over the second quarter and first half of 2004, respectively, while the loan portfolio grew by $902.9 million or 44.5% since June 30, 2004. The lower provision, in relation to the growth in the loan portfolio for both periods in 2005, was due to the lower risk loans obtained in the two acquisitions. The allowance for loan losses as a percentage of total loans was 1.10% at June 30, 2005, down from 1.34% at June 30, 2004, due to the acquired institutions having lower allowance percentages as of the acquisition dates, a change in loan mix and a stable loan portfolio risk profile. |
| · | Non-interest expense increased $6.0 million or 28.2% and $12.0 million or 28.3% compared to the second quarter and first half of 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. Final staffing reductions from the Winton transaction occurred in the second quarter of 2005 and accordingly the number of full-time equivalent employees has decreased from 1,358 at March 31, 2005 to 1,311 at June 30, 2005. Cost savings related to the Winton acquisition commenced in March 2005 and are expected to be fully realized later this year. |
| · | The provision for income taxes for the second quarter of 2005 increased $1.0 million or 46.0% compared to 2004, and on a year to date basis for 2005, increased $1.6 million or 34.7% 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 relative tax inefficiency of the income producing assets of recent acquisitions. For the second quarter of 2005, the effective tax rate was 21.8% compared to 18.7% for the same period in 2004, while on a year to date basis for 2005, it was 21.5% compared to 19.2% for the same period in 2004. |
| · | Total loans increased $444.8 million or 17.9% between December 31, 2004 and June 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 $67.8 million mortgage loan sale in June 2005. On a linked quarter basis from the first quarter of 2005, organic loan growth was approximately $35 million or 1.2% for the second quarter of 2005. |
| · | Total deposits increased $330.2 million or 12.1% between December 31, 2004 and June 30, 2005 primarily due to the Winton acquisition. On a linked quarter basis from the first quarter of 2005, WesBanco has seen increases in non-interest bearing demand deposits, savings and certificates of deposit categories, while money market accounts have decreased due to customer preferences, higher certificate of deposit pricing and competitive factors in the markets served by WesBanco. |
| · | For the quarter ended June 30, 2005, WesBanco repurchased a total of 469,742 shares and on a year to date basis for 2005 a total of 962,863 shares were repurchased. The average price paid on a year to date basis for 2005 was $28.58 per share. WesBanco has 553,780 shares still remaining for repurchase under the current one million share stock repurchase plan approved by the Board in March 2005. |
"WesBanco continues to deliver solid results for our shareholders, both quarter after quarter and year over year. For the remainder of 2005, we look to expand our customer base in all of our market areas, as well as new market areas which we identified as having above average growth potential. We will also search for new products and ideas that will greatly enhance our customers overall banking experience and provide new customers a reason to come and experience what WesBanco has to offer. Another area of vital importance to all banks is customer service. WesBanco recently received a 97% customer satisfaction rating based on an independent customer survey. This rating not only shows our commitment and dedication to our existing customers but shows potential customers what makes WesBanco a great place to do business. To support our marketing program, WesBanco recently hired a new marketing and advertising firm, Blattner Brunner, headquartered in Pittsburgh, PA. Blattner Brunner will support WesBanco’s advertising, public relations, research, direct marketing and interactive marketing efforts," said Mr. Limbert.
WesBanco is a multi-state bank holding company with total assets of approximately $4.5 billion, operating through 85 banking offices, 2 loan production offices, and 129 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 March 31, 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 businesses of WesBanco and its recent acquisitions may not be integrated successfully or such integration may take longer to accomplish than expected; the expected cost savings and any revenue synergies from the mergers may not be fully realized within the expected timeframes; disruption from the mergers may make it more difficult to maintain relationships with clients, associates, or suppliers; the effects of changing regional and national economic conditions; changes in interest rates, spreads on earning assets and interest-bearing liabilities, and associated interest rate sensitivity; sources of liquidity available to the parent company and its related subsidiary operations; potential future credit losses and the credit risk of commercial, real estate, and consumer loan customers and their borrowing activities; actions of the Federal Reserve Board, Federal Deposit Insurance Corporation, the SEC, the National Association of Securities Dealers and other regulatory bodies; potential legislative and federal and state regulatory actions and reform; competitive conditions in the financial services industry; rapidly changing technology affecting financial services and/or other external developments materially impacting WesBanco’s operational and financial performance. WesBanco does not assume any duty to update forward-looking statements.
### See attached financial highlights.
