NEWS FOR IMMEDIATE RELEASE
July 23, 2001 For Further Information Contact:
Edward M. George
President & CEO (304) 234-9208
Nasdaq Trading Symbol: WSBC
WesBanco Announces 14% Increase in Earnings Per Share and Regulatory
Notification
Wheeling, WV . . . . Edward M. George, President & Chief Executive Officer
of WesBanco, Inc., a Wheeling, West Virginia based multi-state bank holding
company, today announced strong earnings for the second quarter and
six-months ended June 30, 2001. Mr. George also released information
regarding a regulatory notification received July 20, 2001 by WesBanco Bank,
Inc.
Mr. George stated that WesBanco's earnings per share for the six-months ended
June 30, 2001 increased 14.3% to $0.80 compared to $0.70 for the six-months
ended June 30, 2000. Net income increased 8.0% to $14.7 million compared to
$13.6 million. WesBanco's increased net income was primarily due to a
reduction in non-interest expense from improved internal operating
efficiencies and increases in net interest income and deposit service
activity fees. The percentage increase in earnings per share exceeded the
percentage increase in net income due to shares repurchased under WesBanco's
current corporate stock repurchase plan.
WesBanco's earnings per share for the second quarter increased 14.3% to $0.40
compared to $0.35 for the same quarter last year. Net income increased 9.3%
to $7.3 million compared to $6.7 million.
Mr. George stated that WesBanco's core earnings per share for the six-months
ended June 30, 2001 increased 13.7% to $0.83 compared to $0.73 for the
six-months ended June 30, 2000. Core earnings, which excludes amortization
of goodwill, net securities gains and net gains/losses on sale of assets
increased 7.2% to $15.2 million compared to $14.2 million.
WesBanco's banking subsidiary, WesBanco Bank, Inc., has received preliminary
notification from its bank regulatory agency, the Federal Reserve Bank of
Cleveland, of a downgrading of
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the bank's Community Reinvestment Act rating. The impact of this change
could be anticipated to adversely affect the ability of WesBanco to obtain
regulatory approval for its two previously announced acquisitions with
Freedom Bancshares, Inc. and American Bancorporation (NASDAQ - AMBC).
WesBanco and representatives of the two institutions are presently weighing
the consequences of the rating, the regulatory appeals available to WesBanco,
the timing and delays which could result therefrom and the likelihood of
WesBanco's ability to close the transactions. This regulatory action is not
directed at, nor does it involve, either Freedom Bancshares, Inc. or American
Bancorporation. The organizations anticipate providing further information as
these issues are clarified.
With the increased earnings, WesBanco's key earnings performance ratios
improved for the six-month comparative period. Return on average assets
increased to 1.26% from 1.20% and return on average equity increased to
11.53% from 10.47%.
Net interest income on a taxable-equivalent basis, increased $0.7 million for
the six-months ended June 30, 2001 compared to the six-months ended June 30,
2000. The decline of interest rates during the first half of 2001 favorably
impacted WesBanco's net interest income for the six-months ended June 30,
2001.
Non-interest income, excluding net securities gains, increased $0.6 million
or 5.4% for the six-months ended June 30, 2001 compared to the six-months
ended June 30, 2000. This increase resulted primarily from increases in
deposit activity income and loan fees generated from real estate loans
originated and sold in the secondary market. Trust revenue remained strong
at $6.0 million for the comparative periods.
Non-interest expense for the six-months ended June 30, 2001 decreased $0.7
million or 2.2% compared to the six-months ended June 30, 2000 due primarily
to reduced levels of other operating expense and employee costs. The
consolidation of WesBanco's four banking affiliates and mortgage company
affiliate into a single bank charter in 2000 continues to provide improved
internal operating efficiencies. As a result, WesBanco's operating
efficiency ratio has improved to 53.5% from 56.3% last year.
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Total loans decreased $22.8 million between June 30, 2001 and June 30, 2000.
The decrease in the loan portfolio was primarily due to a general slowdown
in the regional economy. WesBanco generated loan volume by increasing real
estate loans originated and sold to the secondary market by 67.3% to $42.5
million for the six-months ended June 30, 2001 compared to $25.4 million for
the six-months ended June 30, 2000.
The allowance for loan losses as a percentage of total loans remained
consistent at 1.3% at June 30, 2001 and June 30, 2000, respectively. The
provision for loan losses increased $0.6 million for the six-months ended
June 30, 2001 compared to the six-months ended June 30, 2000. Non-performing
loans to total loans ratio increased to 0.51% from 0.30% for the comparative
periods. This increase resulted primarily from three commercial loans
totaling $4.1 million reclassified as renegotiated during the first quarter
of 2001. Net loan charge-offs for the six-months ended June 30, 2001
increased $1.1 million compared to the six-months ended June 30, 2000.
Personal loan net charge-offs for the comparative period increased $0.7
million due to higher consumer loan delinquencies. The net loan charge-offs
to average loans ratio increased to 0.13% from 0.06% for the comparative
periods.
WesBanco's shareholders' equity remained strong, highlighted by a Tier I
leverage ratio of 9.8% at June 30, 2001 and estimated ratios of 14.2% and
15.4% for Tier I and total risk-based capital, respectively. Book value per
share was $13.98 at June 30, 2001. Shareholders' equity decreased $6.8
million from December 31, 2000 to June 30, 2001, due primarily to the stock
repurchase plan. WesBanco's corporate stock repurchase plan reduced
shareholders' equity for the six-months ended June 30, 2001 by $13.1 million
and reduced outstanding shares by 622,404. As of June 30, 2001, 611,296
shares of WesBanco common stock may be repurchased under the current stock
repurchase plan, which began on March 23, 2001. Up to one million shares of
WesBanco common stock may be repurchased under the plan. The timing, price
and quantity of purchases are at the discretion of the Corporation and the
plan may be discontinued or suspended at anytime.
WesBanco is a multi-state bank holding company presently operating through
59 banking offices in West Virginia and Ohio. Its banking subsidiary is
WesBanco Bank, Inc., headquartered in Wheeling, West Virginia. In addition,
WesBanco operates an insurance company, WesBanco
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Insurance Services, Inc., and a full service broker/dealer, WesBanco
Securities, Inc. that also operates Mountaineer Securities, WesBanco's
discount brokerage operation.
Certain information contained in this Press Release is considered to
constitute forward-looking statements with respect to WesBanco and its
subsidiaries. Forward-looking statements relating to the Corporation'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. Investors are cautioned that
such forward-looking statements, which are not historical fact, involve
risks and uncertainties. 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 effect of changing
regional and national economic conditions; changes in interest rates; credit
risks of commercial, real estate, and consumer loan customers and their
lending activities; actions of the Federal Reserve Board and Federal Deposit
Insurance Corporation, legislative, and federal and state regulatory actions
or reforms; or other unanticipated external developments materially
impacting the Corporation's operational and financial performance. The
Corporation does not assume any duty to update forward-looking statements.
###
See attached financial highlights.
WESBANCO, INC.
Consolidated Selected Financial Highlights
June 30, 2001 and 2000
- -----------------------------------------------------------------------------
(unaudited, dollars in thousands, except per share amounts)
For the Three Months Ended For the Six Months Ended
June 30, June 30,
-------------------------- -------------------------
2001 2000 2001 2000
------------ ------------ ----------- ------------
Statement of income
- -------------------
Interest income (1) $ 42,725 $ 41,648 $ 84,850 $ 82,303
Interest expense 19,642 19,316 39,611 37,785
----------- ----------- ----------- -----------
Net interest income (1) 23,083 22,332 45,239 44,518
Provision for loan losses 1,123 880 2,023 1,447
----------- ----------- ----------- -----------
Net interest income after
provision for loan losses (1) 21,960 21,452 43,216 43,071
----------- ----------- ----------- -----------
Non-interest income
Trust fees 2,831 2,848 5,953 5,967
Service charges on deposits 2,397 2,153 4,486 3,894
Other income 696 515 1,230 1,206
Net securities gains 129 221 384 217
----------- ----------- ----------- -----------
Total non-interest income 6,053 5,737 12,053 11,284
----------- ----------- ----------- -----------
Non-interest expense
Salaries and employee benefits 8,282 8,199 16,183 16,405
Net occupancy 1,061 948 2,053 1,888
Equipment 1,496 1,534 3,028 3,137
Other operating 5,348 5,314 9,967 10,507
----------- ----------- ----------- -----------
Total non-interest expense 16,187 15,995 31,231 31,937
----------- ----------- ----------- -----------
Income before income taxes (1) 11,826 11,194 24,038 22,418
Taxable-equivalent adjustment 1,385 1,287 2,605 2,616
Provision for income taxes 3,141 3,226 6,728 6,191
----------- ----------- ----------- -----------
Net income $ 7,300 $ 6,681 $ 14,705 $ 13,611
=========== =========== =========== ===========
Per common share data
- ---------------------
Net income $ 0.40 $ 0.35 $ 0.80 $ 0.70
Dividends declared 0.23 0.225 0.46 0.445
Book value (period end) --- --- 13.98 13.49
Average shares outstanding 18,118,639 19,215,808 18,301,754 19,431,770
Period end shares outstanding --- --- 17,998,933 19,055,209
Core earnings
- -------------
Core earnings (2) $ 7,640 $ 6,952 $ 15,188 $ 14,170
Core earnings per share (2) 0.42 0.36 0.83 0.73
Profitability ratios (annualized)
- --------------------------------
Return on average assets 1.22% 1.18% 1.26% 1.20%
Return on average equity 11.44% 10.44% 11.53% 10.47%
Yield on earning assets (1) 7.68% 7.89% 7.80% 7.81%
Cost of interest bearing liabilities 4.17% 4.35% 4.32% 4.27%
Net interest margin (1) 4.15% 4.23% 4.15% 4.22%
Efficiency (1), (2) 54.39% 55.96% 53.50% 56.29%
(1) taxable-equivalent basis.
(2) excludes goodwill amortization, net securities gains and net gains/losses
on sale of assets.
WESBANCO, INC.
Consolidated Selected Financial Highlights
June 30, 2001 and 2000
- -----------------------------------------------------------------------------
(unaudited, dollars in thousands, except per share amounts)
June 30,
-------------------------
Balance sheet (period end) 2001 2000
- -------------------------- ----------- -----------
Assets $ 2,398,110 $ 2,307,407
Earning assets 2,240,914 2,146,986
Securities 651,862 540,718
Loans, net of unearned income 1,548,017 1,570,799
Interest bearing liabilities 1,894,039 1,805,380
Total deposits 1,863,596 1,852,874
Non-interest bearing demand 230,607 222,581
Interest bearing demand 597,385 578,067
Savings 253,536 267,509
Certificates of deposit 782,068 784,717
Other borrowings 261,050 175,087
Shareholders' equity 251,674 257,121
Asset quality data
- ------------------
Non-performing assets:
Non-accrual loans $ 4,023 $ 4,706
Renegotiated loans 3,812 ---
----------- -----------
Total non-performing loans 7,835 4,706
Other real estate owned 3,037 4,024
----------- -----------
Total non-performing assets $ 10,872 $ 8,730
=========== ===========
Past due loans 90 days or more $ 6,612 $ 4,078
Allowance for loan losses 19,974 20,209
Net loan charge-offs:
Quarter-to-date 1,120 456
Year-to-date 2,079 990
Non-performing loans/total loans 0.51% 0.30%
Non-performing assets/total assets 0.45 0.38
Allowance for loan losses/total loans 1.29 1.29
Net loan charge-offs (year-to-date)/average loans 0.13 0.06
Capital ratios
- --------------
Total risk-based capital (1) 15.40% 15.96%
Tier I risk-based capital (1) 14.17 14.74
Tier I Leverage capital 9.76 10.79
(1) estimated at June 30, 2001.
For the Three Months Ended For the Six Months Ended
June 30, June 30,
-------------------------- -------------------------
2001 2000 2001 2000
------------ ------------ ----------- ------------
Average balance sheet
- ---------------------
Assets $ 2,392,234 $ 2,280,595 $ 2,349,857 $ 2,271,627
Earning assets 2,228,619 2,123,811 2,188,235 2,120,524
Securities, at amortized cost 620,151 562,795 575,670 568,836
Loans, net of unearned income 1,556,241 1,550,229 1,566,712 1,539,213
Interest bearing liabilities 1,888,602 1,786,535 1,849,328 1,779,666
Deposits 1,870,707 1,863,446 1,859,815 1,852,323
Shareholders' equity 256,054 257,296 257,146 261,537