NEWS FOR IMMEDIATE RELEASE EXHIBIT 99.1
April 19, 2006 For Further Information Contact:
Paul M. Limbert
President and Chief Executive Officer
or
Robert H. Young
Executive Vice President and Chief Financial Officer
(304) 234-9000
NASDAQ Trading Symbol: WSBC
Website: www.wesbanco.com
WesBanco Announces First Quarter 2006 Results
Wheeling, WV… 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 first quarter.
Net income for the quarter ended March 31, 2006 was $5.6 million and included $4.9 million in after-tax losses arising in connection with the sale of securities under the planned balance sheet repositioning previously announced, a $1.5 million after-tax gain on the sale of the Ritchie County branch offices and $0.3 million in after-tax costs associated with the restructuring of a business unit, as compared to $11.1 million for the first quarter of 2005, a 49.6% decrease. Diluted earnings per share were $0.25 for the first quarter compared to $0.48 for the same period in 2005. Core operating earnings, excluding the above-noted items, were $9.3 million or $0.42 per diluted share as compared to $11.4 million or $0.49 per share for the first quarter of 2005.
“At the end of the quarter, WesBanco established a plan to reposition its balance sheet,” stated Mr. Limbert, “by selling approximately $200 million in fixed rate securities available for sale and paying down a commensurate amount of high-cost FHLB and other short-term borrowings. While this planned repositioning was costly in the short run, with first quarter earnings reflecting a charge of approximately $8.0 million to record the impairment of securities that were to be disposed early in the second quarter, we believe WesBanco is better positioned in the current flat interest rate environment, with an expected 25 basis point increase in net interest margin, reduced reliance upon expensive short-term wholesale borrowings, and improved measures for tangible equity, efficiency, return on average assets and return on average equity. In addition, we closed on our late 2005-announced sale of four Ritchie County, West Virginia branch offices to another local bank at a net pre-tax gain of approximately $2.5 million. With these actions, WesBanco continues to focus on improving the quality of its earnings while repositioning its branch structure into higher growth markets in central and southwestern Ohio.”
Highlights for the first quarter of 2006 are as follows:
| · | Net interest income for the first quarter decreased $2.5 million or 7.5% compared to the first quarter of 2005 primarily due to compression in the net interest margin, which was 3.40% compared to 3.51% for the first quarter of 2005, along with reductions in net earning assets. A flat to inverted yield curve, along with rising interest rates, particularly on the short end of the curve, contributed to the compression in net interest margin. |
| · | Non-interest income, net of the loss associated with the balance sheet repositioning and the gain on the sale of the Ritchie County branches, increased $1.5 million or 15.4% over the first quarter of 2005. The increase was primarily driven by a $1.3 million increase in activity charges on deposit accounts resulting from a new overdraft program introduced in the fourth quarter of 2005, higher electronic banking fees and a 9.3% increase in trust and investment management fees. The trust increase was due to higher asset values under management as well as new business. |
| · | WesBanco’s provision for loan losses increased $0.8 million or 43.2% over the first quarter of 2005 due to an increase in non-performing loans, primarily from a $5.0 million commercial loan participation which was placed on non-accrual in the first quarter. Net charge-offs on an annualized basis were 0.18% for the first quarter as compared to 0.14% for the first quarter of 2005. On a linked-quarter basis, net charge-offs decreased from 0.50% in the fourth quarter of 2005, which was elevated due to an increase in bankruptcies, as individuals filed in advance of new bankruptcy laws, and a $0.7 million write-down of certain underperforming commercial loans classified as held for sale at year end. The underperforming loans, totaling $6.7 million, were subsequently sold with no additional gain or loss recognized in the first quarter. The allowance for loan losses as a percentage of total loans increased to 1.10% at the end of the first quarter. |
| · | Non-interest expense decreased $0.3 million or 1.2% compared to the first quarter of 2005. The decrease was primarily due to a decrease in full-time equivalent employees, which was somewhat offset by an increase in health care costs. Full-time equivalent employees at the end of the first quarter were 1,165 compared to 1,358 for the first quarter of 2005. In the first quarter of 2006, WesBanco recorded a pre-tax charge of $0.5 million in severance payouts and lease termination costs associated with the restructuring of its mortgage business unit. A similar amount was recorded in the first quarter of 2005 for Winton Financial Corporation merger-related expenses. |
| · | Total loans decreased by $28.0 million in the first quarter as compared to the first quarter of 2005, but net of approximately $94.0 million in loan sales over the past year, loans were up approximately $34.0 million. In addition, the mix of the portfolio has changed. Residential real estate loans decreased by approximately $102.2 million ($67.8 million of which were sold in the second quarter of 2005), as WesBanco focused on reducing its overall residential loan portfolio as a percentage of total loans, selling a greater portion of new originations into the secondary market, which decrease was partially offset by an increase in commercial and commercial real estate loans of approximately $76.0 million. Consumer and home equity loans remained relatively flat in the first quarter as compared to the first quarter of 2005. Approximately $19.3 million of loans were sold in connection with the sale of the Ritchie County branch offices, in addition to the above-mentioned sale of underperforming loans. |
| · | Total deposits decreased by $77.6 million or 2.5% in the first quarter compared to the first quarter of 2005. The decrease in deposits was due to continued runoff in money market deposit accounts, as customer preferences in a rising rate environment have turned to short- and intermediate-term certificates of deposit and non-bank money market funds, and the sale of approximately $37.8 million of deposits in connection with the sale of the Ritchie County branches. WesBanco experienced an increase of 4.2% in average certificates of deposit and 3.7% in average non-interest bearing demand deposit accounts compared to last year, with the free checking account increase a result of an aggressive marketing campaign beginning in the fourth quarter that has resulted in the opening of over 14,000 new accounts. |
| · | The provision for income taxes decreased $1.6 million or 54.3% compared to the first quarter of 2005 due to a decrease in pre-tax income. Pre-tax income decreased primarily due to the securities losses associated with the balance sheet repositioning. The effective tax rate for the year is expected to range from 19.5% to 20.0%. The effective rate for core operating earnings, which are presented in the accompanying financial highlights schedules, would be expected to approximate 21.7% for the year. |
| · | In the first quarter of 2006, WesBanco’s dividend rate was increased 1.9% to $1.06 per share on an annualized basis ($0.265 per quarter), up from the previous rate of $1.04 per share. During the quarter, Mergent, Inc. recognized WesBanco as one of its “Mergent’s Dividend Achievers®” for 2006. As such, WesBanco is one of just 3% of all U.S. publicly listed companies to meet Mergent’s stringent criteria, including successfully delivering dividend increases to shareholders for 10 or more years. WesBanco has actually increased dividends over the last 21 consecutive years. |
| · | For the quarter ended March 31, 2006, WesBanco repurchased a total of 39,200 common shares at an average price of $31.39 per share. WesBanco has 98,961 shares remaining for repurchase under the current repurchase plan approved in March 2005, and 1,000,000 shares under a new plan approved in January 2006. |
WesBanco is a multi-state bank holding company with total assets of approximately $4.3 billion, currently operating through 81 banking offices, two loan production offices, and 128 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 2005 Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”), which is 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 2005 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 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.
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WESBANCO, INC. | | | | | | |
Consolidated Selected Financial Highlights | | | | | Page 4 | |
(unaudited, dollars in thousands, except per share amounts) | | | | | | |
| | | | | | | |
| | For the Three Months Ended | |
| | March 31, | |
Statement of income | 2006 | | 2005 | | % Change | |
| Interest income | $ 56,447 | | $ 54,884 | | 2.85% | |
| Interest expense | 25,464 | | 21,383 | | 19.09% | |
| Net interest income | 30,983 | | 33,501 | | (7.52%) | |
| Provision for loan losses | 2,640 | | 1,843 | | 43.24% | |
| Net interest income after provision for | | | | | | |
| loan losses | 28,343 | | 31,658 | | (10.47%) | |
| Non-interest income | | | | | | |
| Trust fees | 4,058 | | 3,714 | | 9.26% | |
| Service charges on deposit accounts | 3,797 | | 2,462 | | 54.22% | |
| Net securities (losses)/gains (1) | (7,942) | | 753 | | (1154.71%) | |
| Other income (2) | 5,501 | | 2,602 | | 111.41% | |
| Total non-interest income | 5,414 | | 9,531 | | (43.20%) | |
| Non-interest expense | | | | | | |
| Salaries and employee benefits | 13,416 | | 13,896 | | (3.45%) | |
| Net occupancy | 2,013 | | 1,796 | | 12.08% | |
| Equipment | 2,030 | | 2,204 | | (7.89%) | |
| Core deposit intangibles | 633 | | 663 | | (4.52%) | |
| Merger-related expenses (3) | - | | 493 | | (100.00%) | |
| Restructuring expenses (4) | 540 | | - | | 100.00% | |
| Other operating | 8,180 | | 8,077 | | 1.28% | |
| Total non-interest expense | 26,812 | | 27,129 | | (1.17%) | |
| Income before provision for income taxes | 6,945 | | 14,060 | | (50.60%) | |
| Provision for income taxes | 1,361 | | 2,980 | | (54.33%) | |
| Net income | $ 5,584 | | $ 11,080 | | (49.60%) | |
| | | | | | | |
Taxable equivalent net interest income | $ 33,303 | | $ 36,024 | | (7.55%) | |
| | | | | | | |
Per common share data | | | | | | |
| Net income per common share - basic | $ 0.25 | | $ 0.48 | | (46.97%) | |
| Net income per common share - diluted | $ 0.25 | | $ 0.48 | | (47.12%) | |
| Dividends declared | $ 0.265 | | $ 0.26 | | 1.92% | |
| Book value (period end) | $ 18.98 | | $ 18.62 | | 1.94% | |
| Tangible book value (period end) | $ 12.28 | | $ 12.08 | | 1.62% | |
| Average shares outstanding - basic | 21,937,948 | | 22,992,398 | | (4.59%) | |
| Average shares outstanding - diluted | 21,998,750 | | 23,043,874 | | (4.54%) | |
| Period end shares outstanding | 21,925,266 | | 22,769,417 | | (3.71%) | |
| | | | | | | |
Selected ratios | | | | | | |
| Return on average assets | 0.52% | | 0.99% | | (47.42%) | |
| Return on average equity | 5.45% | | 10.42% | | (47.71%) | |
| Yield on earning assets (5) | 6.01% | | 5.60% | | 7.32% | |
| Cost of interest bearing liabilities | 2.93% | | 2.33% | | 25.69% | |
| Net interest spread (5) | 3.08% | | 3.27% | | (5.78%) | |
| Net interest margin (5) | 3.40% | | 3.51% | | (3.20%) | |
| Efficiency (5) | 69.25% | | 59.55% | | 16.29% | |
| Average loans to average deposits | 97.78% | | 96.44% | | 1.39% | |
| Annualized net loan charge-offs/average loans | 0.18% | | 0.14% | | 25.52% | |
| Effective income tax rate | 19.60% | | 21.19% | | 6.30% | |
| | | | | | | |
(1) includes other-than-temporary impairment losses totaling $8,048 on available-for-sale securities. | | | | |
(2) includes a gain of $2,465 on the sale of the Ritchie County, West Virginia branch offices. | | | |
(3) merger-related expenses in 2005, are primarily related to the acquisitions of Winton Financial Corporation and Western | |
Ohio Financial Corporation. | | | | | | |
(4) restructuring costs associated with a reduction of WesBanco's workforce through layoffs and business unit restructuring. | |
(5) 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. | |
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WESBANCO, INC. | | | | | | | | | | | |
Consolidated Selected Financial Highlights | Page 5 | |
(unaudited, dollars in thousands) | | | | | | | | | % Change | | | | | | % Change | |
Balance sheet (period end) | | | | | | | | | March 31, 2005 to | | | | | | December 31, 2005 | |
Assets | | | | | | | | | March 31, 2006 | | | December 31, 2005 | | | to March 31, 2006 | |
| Cash and due from banks | | $ | 99,071 | | $ | 71,138 | | | 39.27 | % | $ | 108,176 | | | (8.42 | )% |
| Due from banks - Interest bearing | | | 1,225 | | | 3,555 | | | (65.54 | ) | | 2,432 | | | (49.63 | ) |
| Federal funds sold | | | - | | | - | | | - | | | - | | | - | |
| Securities | | | 936,018 | | | 1,138,094 | | | (17.76 | ) | | 992,564 | | | (5.70 | ) |
| Loans: | | | | | | | | | | | | | | | | |
| Commercial and commercial real estate | | | 1,565,591 | | | 1,489,547 | | | 5.11 | | | 1,535,503 | | | 1.96 | |
| Residential real estate | | | 926,928 | | | 1,029,102 | | | (9.93 | ) | | 958,626 | | | (3.31 | ) |
| Consumer and home equity | | | 442,854 | | | 444,586 | | | (0.39 | ) | | 446,751 | | | (0.87 | ) |
| Total loans | | | 2,935,373 | | | 2,963,235 | | | (0.94 | ) | | 2,940,880 | | | (0.19 | ) |
| Allowance for loan losses | | | (32,291 | ) | | (32,225 | ) | | 0.20 | | | (30,957 | ) | | 4.31 | |
| Net loans | | | 2,903,082 | | | 2,931,010 | | | (0.95 | ) | | 2,909,923 | | | (0.24 | ) |
| Premises and equipment, net | | | 63,899 | | | 62,363 | | | 2.46 | | | 64,707 | | | (1.25 | ) |
| Goodwill | | | 137,258 | | | 136,619 | | | 0.47 | | | 137,258 | | | - | |
| Core deposit intangible, net | | | 9,767 | | | 12,304 | | | (20.62 | ) | | 10,400 | | | (6.09 | ) |
| Other assets | | | 196,990 | | | 202,530 | | | (2.74 | ) | | 196,655 | | | 0.17 | |
Total Assets | | $ | 4,347,310 | | $ | 4,557,613 | | | (4.61 | )% | $ | 4,422,115 | | | (1.69 | )% |
| | | | | | | | | | | | | | | | | |
Liabilities and Shareholders' Equity | | | | | | | | | | | | | | | | |
| Non-interest bearing demand deposits | | $ | 398,408 | | $ | 359,871 | | | 10.71 | % | $ | 392,116 | | | 1.60 | % |
| Interest bearing demand deposits | | | 324,572 | | | 324,268 | | | 0.09 | | | 325,582 | | | (0.31 | ) |
| Money market accounts | | | 404,612 | | | 577,532 | | | (29.94 | ) | | 444,071 | | | (8.89 | ) |
| Savings deposits | | | 467,968 | | | 448,659 | | | 4.30 | | | 462,601 | | | 1.16 | |
| Certificates of deposit | | | 1,396,463 | | | 1,359,260 | | | 2.74 | | | 1,403,954 | | | (0.53 | ) |
| Total deposits | | | 2,992,023 | | | 3,069,590 | | | (2.53 | ) | | 3,028,324 | | | (1.20 | ) |
| Federal Home Loan Bank borrowings | | | 574,745 | | | 711,415 | | | (19.21 | ) | | 612,693 | | | (6.19 | ) |
| Other borrowings | | | 237,437 | | | 225,893 | | | 5.11 | | | 244,301 | | | (2.81 | ) |
| Junior subordinated debt | | | 87,638 | | | 87,638 | | | - | | | 87,638 | | | - | |
| Other liabilities | | | 39,296 | | | 39,031 | | | 0.68 | | | 33,929 | | | 15.82 | |
| Shareholders' equity | | | 416,171 | | | 424,046 | | | (1.86 | ) | | 415,230 | | | 0.23 | |
Total Liabilities and Shareholders' Equity | | $ | 4,347,310 | | $ | 4,557,613 | | | (4.61 | )% | $ | 4,422,115 | | | (1.69 | )% |
| | | | | | | | | | | | | | | | | |
Average balance sheet and | | For the Three Months Ended |
net interest margin analysis | | March 31, |
| | | | | | 2006 | 2005 |
| | | | | | Average | Annualized | Average | | Average | Annualized | Average |
Assets | | | | | Volume | Interest | Rate | | Volume | Interest | Rate |
| Due from banks - interest bearing | | | $ 1,806 | $ 44 | 2.44% | | $ 6,736 | $ 81 | 1.20% |
| Loans, net of unearned income | | | 2,927,528 | 185,469 | 6.34% | | 2,959,371 | 173,764 | 5.87% |
| Securities: | | | | | | | | | |
| Taxable | | 582,779 | 23,792 | 4.08% | | 713,712 | 27,628 | 3.87% |
| Tax-exempt | | 398,180 | 26,511 | 6.66% | | 410,699 | 28,837 | 7.02% |
| Total securities | | 980,959 | 50,303 | 5.13% | | 1,124,411 | 56,465 | 5.02% |
| Federal funds sold | | - | - | 0.00% | | 3,690 | 88 | 2.38% |
| Other earning assets (1) | | 43,444 | 1,792 | 4.12% | | 48,278 | 1,692 | 3.50% |
Total earning assets | | 3,953,737 | $ 237,608 | 6.01% | | 4,142,486 | $ 232,090 | 5.60% |
| Other assets | | 396,807 | | | | 407,192 | | |
Total Assets | $ 4,350,544 | | | | $ 4,549,678 | | |
| | | | | | | | | | | | |
Liabilities and Shareholders' Equity | | | | | | | | |
| Interest bearing demand deposits | | $ 320,452 | $ 2,214 | 0.69% | | $ 330,477 | $ 1,326 | 0.40% |
| Money market accounts | | 425,387 | 8,902 | 2.09% | | 588,321 | 10,796 | 1.84% |
| Savings deposits | | 465,307 | 5,175 | 1.11% | | 437,892 | 2,255 | 0.51% |
| Certificates of deposit | | 1,409,658 | 50,666 | 3.59% | | 1,352,283 | 39,083 | 2.89% |
| Total interest bearing deposits | | 2,620,804 | 66,957 | 2.55% | | 2,708,973 | 53,460 | 1.97% |
| Federal Home Loan Bank borrowings | | 602,733 | 21,730 | 3.61% | | 719,746 | 24,102 | 3.35% |
| Other borrowings | | 215,088 | 9,093 | 4.23% | | 221,499 | 4,867 | 2.20% |
| Junior subordinated debt | | 87,638 | 5,491 | 6.27% | | 74,580 | 4,295 | 5.76% |
Total interest bearing liabilities | | 3,526,263 | $ 103,271 | 2.93% | | 3,724,798 | $ 86,724 | 2.33% |
| Non-interest bearing demand deposits | | 373,061 | | | | 359,619 | | |
| Other liabilities | | 35,566 | | | | 34,179 | | |
| Shareholders' equity | | 415,654 | | | | 431,082 | | |
Total Liabilities and | | | | | | | | |
Shareholders' Equity | | $ 4,350,544 | | | | $ 4,549,678 | | |
| | | | | | | | | | | | |
Taxable equivalent net interest spread | | | 3.08% | | | | 3.27% |
Taxable equivalent net interest margin | | | | 3.40% | | | | 3.51% |
| | | | | | | | | | | | |
(1) Federal Reserve stock, Federal Home Loan Bank stock and equity securities that do not have readily determinable fair market values. |
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WESBANCO, INC. | | | | | | | | | |
Consolidated Selected Financial Highlights | | | | | | | | | Page 6 |
(unaudited, dollars in thousands, except per share amounts) | | | | | | | | |
| | | | | | | | | | |
| | Quarter Ended |
| | March 31, | | Dec. 31, | | Sept. 30, | | June 30, | | March 31, |
Statement of income | 2006 | | 2005 | | 2005 | | 2005 | | 2005 |
| Interest income | $ 56,447 | | $ 57,096 | | $ 56,231 | | $ 56,534 | | $ 54,884 |
| Interest expense | 25,464 | | 24,742 | | 23,643 | | 22,666 | | 21,383 |
| Net interest income | 30,983 | | 32,354 | | 32,588 | | 33,868 | | 33,501 |
| Provision for loan losses | 2,640 | | 2,142 | | 2,141 | | 1,919 | | 1,843 |
| Net interest income after provision for | | | | | | | | | |
| loan losses | 28,343 | | 30,212 | | 30,447 | | 31,949 | | 31,658 |
| Non-interest income | | | | | | | | | |
| Trust fees | 4,058 | | 3,538 | | 3,541 | | 3,512 | | 3,714 |
| Service charges on deposit accounts | 3,797 | | 3,515 | | 2,834 | | 2,723 | | 2,462 |
| Net securities (losses)/gains | (7,942) | | 59 | | 141 | | 1,068 | | 753 |
| Other income | 5,501 | | 2,710 | | 3,324 | | 2,637 | | 2,602 |
| Total non-interest income | 5,414 | | 9,822 | | 9,840 | | 9,940 | | 9,531 |
| Non-interest expense | | | | | | | | | |
| Salaries and employee benefits | 13,416 | | 13,446 | | 14,420 | | 14,528 | | 13,896 |
| Net occupancy | 2,013 | | 1,776 | | 1,844 | | 1,751 | | 1,796 |
| Equipment | 2,030 | | 1,969 | | 2,018 | | 2,190 | | 2,204 |
| Core deposit intangibles | 633 | | 654 | | 665 | | 685 | | 663 |
| Merger-related expenses (1) | - | | - | | 15 | | 70 | | 493 |
| Restructuring expenses (2) | 540 | | - | | 952 | | - | | - |
| Other operating | 8,180 | | 8,790 | | 7,749 | | 8,269 | | 8,077 |
| Total non-interest expense | 26,812 | | 26,635 | | 27,663 | | 27,493 | | 27,129 |
| Income before income taxes | 6,945 | | 13,399 | | 12,624 | | 14,396 | | 14,060 |
| Provision for income taxes | 1,361 | | 2,850 | | 2,754 | | 3,138 | | 2,980 |
| Net income | $ 5,584 | | $ 10,549 | | $ 9,870 | | $ 11,258 | | $ 11,080 |
| | | | | | | | | | |
Taxable equivalent net interest income | $ 33,303 | | $ 34,786 | | $ 35,111 | | $ 36,448 | | $ 36,024 |
| | | | | | | | | | |
Per common share data | | | | | | | | | |
| Net income per common share - basic | $ 0.25 | | $0.48 | | $ 0.44 | | $ 0.50 | | $ 0.48 |
| Net income per common share - diluted | $ 0.25 | | $0.48 | | $ 0.44 | | $ 0.50 | | $ 0.48 |
| Dividends declared | $ 0.265 | | $0.26 | | $ 0.26 | | $ 0.26 | | $ 0.26 |
| Book value (period end) | $ 18.98 | | $18.91 | | $ 18.74 | | $ 18.82 | | $ 18.62 |
| Tangible book value (period end) | $ 12.28 | | $12.19 | | $ 12.08 | | $ 12.15 | | $ 12.08 |
| Average shares outstanding - basic | 21,937,948 | | 22,070,906 | | 22,260,541 | | 22,587,213 | | 22,992,398 |
| Average shares outstanding - diluted | 21,998,750 | | 22,127,684 | | 22,320,674 | | 22,643,463 | | 23,043,874 |
| Period end shares outstanding | 21,925,266 | | 21,955,359 | | 22,156,096 | | 22,321,525 | | 22,769,417 |
| Full time equivalent employees | 1,165 | | 1,200 | | 1,254 | | 1,311 | | 1,358 |
| | | | | | | | | | |
Selected ratios | | | | | | | | | |
| Return on average assets | 0.52% | | 0.95% | | 0.88% | | 0.99% | | 0.99% |
| Return on average equity | 5.45% | | 10.09% | | 9.35% | | 10.66% | | 10.42% |
| Yield on earning assets (3) | 6.01% | | 5.88% | | 5.78% | | 5.71% | | 5.60% |
| Cost of interest bearing liabilities | 2.93% | | 2.74% | | 2.59% | | 2.44% | | 2.33% |
| Net interest spread (3) | 3.08% | | 3.14% | | 3.19% | | 3.27% | | 3.27% |
| Net interest margin (3) | 3.40% | | 3.45% | | 3.46% | | 3.52% | | 3.51% |
| Efficiency (3) | 69.25% | | 59.71% | | 61.54% | | 59.27% | | 59.55% |
| Average loans to average deposits | 97.78% | | 96.92% | | 95.80% | | 96.36% | | 96.44% |
| Trust Assets, market value at period end | $ 2,871,129 | | $ 2,599,463 | | $ 2,598,993 | | $ 2,557,916 | | $ 2,589,631 |
| | | | | | | | | | |
(1) merger-related expenses in 2005, are primarily related to the acquisitions of Winton Financial Corporation and Western. |
Ohio Financial Corporation. |
(2) restructuring costs associated with a reduction of WesBanco's workforce through layoffs and business unit restructuring. |
(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 | | | | | | | | | Page 7 | |
(unaudited, dollars in thousands) | | | | | | | | | | |
| | | | | Quarter Ended |
| | | | | March 31, | | Dec. 31, | | Sept. 30, | | June 30, | | March 31, | |
Asset quality data | | 2006 | | 2005 | | 2005 | | 2005 | | 2005 | |
| Non-performing assets: | | | | | | | | | | |
| Non-accrual loans | $ 14,129 | | $ 9,920 | | $ 9,812 | | $ 10,941 | | $ 8,476 | |
| Renegotiated loans | - | | - | | - | | - | | - | |
| Total non-performing loans | 14,129 | | 9,920 | | 9,812 | | 10,941 | | 8,476 | |
| Other real estate and repossessed assets | 2,692 | | 1,868 | | 1,929 | | 2,525 | | 2,497 | |
| Total non-performing loans and assets | $ 16,821 | | $ 11,788 | | $ 11,741 | | $ 13,466 | | $ 10,973 | |
| Loans past due 90 days or more | $ 6,528 | | $ 10,054 | | $ 8,411 | | $ 7,585 | | $ 8,032 | |
| | | | | | | | | | | | | | |
| Non-performing assets/total assets | 0.39 | % | 0.27 | % | 0.27 | % | 0.30 | % | 0.24 | % |
| Non-performing assets/total loans, other real | | | | | | | | | | |
| estate and repossessed assets | 0.57 | % | 0.40 | % | 0.40 | % | 0.46 | % | 0.37 | % |
| Non-performing loans/total loans | 0.48 | % | 0.34 | % | 0.33 | % | 0.37 | % | 0.29 | % |
| Non-performing loans and loans past due 90 | | | | | | | | | | |
| days or more/total loans | 0.70 | % | 0.68 | % | 0.62 | % | 0.63 | % | 0.56 | % |
| Non-performing loans, loans past due 90 days and other | | | | | | | | | | |
| real estate owned/total loans and other real estate owned | 0.79 | % | 0.74 | % | 0.69 | % | 0.72 | % | 0.64 | % |
| | | | | | | | | | | | | | |
Allowance for loan losses | | | | | | | | | | | |
| Allowance for loan losses | $ 32,291 | | $ 30,957 | | $ 32,497 | | $ 32,348 | | $ 32,225 | |
| Provision for loan losses | 2,640 | | 2,142 | | 2,141 | | 1,919 | | 1,843 | |
| Net loan charge-offs | 1,306 | | 3,682 | | 1,993 | | 1,795 | | 1,051 | |
| Annualized net loan charge-offs /average loans | 0.18 | % | 0.50 | % | 0.27 | % | 0.24 | % | 0.14 | % |
| Allowance for loan losses/total loans | 1.10 | % | 1.05 | % | 1.11 | % | 1.10 | % | 1.09 | % |
| Allowance for loan losses/non-performing loans | 2.29 | x | 3.12 | x | 3.31 | x | 2.96 | x | 3.80 | x |
| Allowance for loan losses/non-performing loans and | | | | | | | | | | |
| past due 90 days or more | 1.56 | x | 1.55 | x | 1.78 | x | 1.75 | x | 1.95 | x |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Capital ratios | | | | | | | | | | | |
| Tier I leverage capital | 8.56 | % | 8.46 | % | 8.38 | % | 8.17 | % | 8.34 | % |
| Tier I risk-based capital | 11.98 | % | 11.94 | % | 11.92 | % | 11.93 | % | 12.03 | % |
| Total risk-based capital | 13.06 | % | 12.97 | % | 13.01 | % | 13.01 | % | 13.09 | % |
| Shareholders' equity to assets | 9.55 | % | 9.42 | % | 9.43 | % | 9.34 | % | 9.30 | % |
| Tangible equity to tangible assets (1) | 6.38 | % | 6.28 | % | 6.31 | % | 6.24 | % | 6.52 | % |
| | | | | | | | | | | | | |
(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 | | | | | | | | Page 8 |
(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 expenses, restructuring expenses, and other-than-temporary impairment losses on available-for-sale securities 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 Months Ended |
| | | | | | | March 31, |
| | | | | | | 2006 | | 2005 |
| Net income | | | | | | $ 5,584 | | $ 11,080 |
| Add: merger-related expenses, net of tax (1) | | | | | | - | | 296 |
| Add: restructuring expenses, net of tax (1) | | | | | | 324 | | - |
| Add: other-than-temporary impairment losses, net of tax (1) | | | | | 4,829 | | - |
| Subtract: gain on branch sale, net of tax (1) | | | | | | (1,479) | | - |
| Core operating earnings | | | | | | $ 9,258 | | $ 11,376 |
| | | | | | | | | |
| | | | | | | | | |
| Net income per common share (3) | | | | | | $ 0.25 | | $ 0.48 |
| Effects of merger-related expenses, net of tax (1) | | | | | | - | | 0.01 |
| Effects of restructuring expenses, net of tax (1) | | | | | | 0.02 | | - |
| Effects of other-than-temporary impairment losses, net of tax (1) | | | | | 0.22 | | - |
| Effects of gain on branch sale, net of tax (1) | | | | | | (0.07) | | - |
| Core operating earnings per common share (3) | | | | | | $ 0.42 | | $ 0.49 |
| | | | | | | | | |
| | | | | | | | | |
Selected ratios | | | | | | | | |
| Return on average assets | | | | | | 0.52 % | | 0.99 % |
| Effects of merger-related expenses, net of tax (1) | | | | | | 0.00 % | | 0.02 % |
| Effects of restructuring expenses, net of tax (1) | | | | | | 0.03 % | | 0.00 % |
| Effects of other-than-temporary impairment losses, net of tax (1) | | | | | 0.45 % | | 0.00 % |
| Effects of gain on branch sale, net of tax (1) | | | | | | (0.14%) | | 0.00 % |
| Core return on average assets | | | | | | 0.86 % | | 1.01 % |
| | | | | | | | | |
| | | | | | | | | |
| Return on average equity | | | | | | 5.45 % | | 10.42 % |
| Effects of merger-related expenses, net of tax (1) | | | | | | 0.00 % | | 0.28 % |
| Effects of restructuring expenses, net of tax (1) | | | | | | 0.32 % | | 0.00 % |
| Effects of other-than-temporary impairment losses, net of tax (1) | | | | | 4.71 % | | 0.00 % |
| Effects of gain on branch sale, net of tax (1) | | | | | | (1.44%) | | 0.00 % |
| Core return on average equity | | | | | | 9.04 % | | 10.70 % |
| | | | | | | | | |
| | | | | | | | | |
| Efficiency ratio (2) | | | | | | 69.25 % | | 59.55 % |
| Effects of merger-related expenses | | | | | | 0.00 % | | (1.08%) |
| Effects of restructuring expenses | | | | | | (1.61%) | | 0.00 % |
| Effects of other-than-temporary impairment losses | | | | | | (13.79%) | | 0.00 % |
| Effects of gain on branch sale | | | | | | 5.45 % | | 0.00 % |
| Core efficiency ratio | | | | | | 59.30 % | | 58.47 % |
| | | | | | | | | |
| | | | | | | | | |
(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. |
(3) the dilutive effect from stock options was immaterial and accordingly, basic and diluted earnings per share are the same. |
