EXHIBIT 99
----------
NEWS FOR IMMEDIATE RELEASE
January 23, 2003
For Further Information Contact:
Paul M. Limbert
President & CEO
or
Robert H. Young
Executive VP & CFO
(304) 234-9000
NASDAQ Trading Symbol: WSBC
Website: www.wesbanco.com
WesBanco Announces Record Fourth Quarter and 2002 Earnings Per Share
Wheeling, WV... Paul M. Limbert, President & CEO of WesBanco, Inc., a
Wheeling, West Virginia based multi-state bank holding company, today
announced record earnings for the fourth quarter and the year ended
December 31, 2002.
Mr. Limbert noted that WesBanco's net income for the fourth quarter of 2002
increased 25.1% to $9.1 million compared to $7.3 million for the corresponding
period in 2001. Earnings per share increased 7.3% to $0.44 compared to
$0.41 for the fourth quarter of 2001. For the year ended December 31, 2002,
net income increased 20.1% to $34.8 million versus $29.0 million. Earnings
per share increased 6.3% to $1.70 for the year compared to $1.60 for 2001.
Return on average assets was 1.13% for the year ended December 31, 2002,
compared to 1.21% in 2001, and return on average equity was 10.95% and 11.28%,
respectively. The results for 2002 reflect the acquisition of American
Bancorporation ("American") on March 1, 2002.
Excluding the impact of certain adjusting items, primarily acquisition-related
expenses, net securities gains, asset disposal losses, and goodwill
amortization in 2001, core earnings per share would have been $0.45 or $9.3
million for the fourth quarter of 2002 and $1.74 or $35.6 million for the
year ended December 31, 2002, compared to $0.41 or $7.4 million and $1.64 or
$29.7 million for the same periods in 2001, respectively.
"I am very pleased with the solid earnings performance for the fourth quarter
of 2002 and for the full year. Despite 2002's challenging economic conditions
and the current interest rate environment, we increased our core earnings
per share 6% and remain focused on our financial objective of earnings per
share growth," said Paul M. Limbert, President and Chief Executive Officer.
"WesBanco's shareholders were rewarded with a total return on WesBanco
common stock of 15.1% for 2002, including an excellent dividend yield
approximating 4.0%. We continue to see the benefits of the efficiencies
gained in the American acquisition. In 2003, we will continue expanding our
services in the new market areas of Columbus, Ohio and southwestern
Pennsylvania, as well as exploring new products and services for our
existing markets. However, we also expect additional net interest margin
compression for the first part of the year or until interest rates
begin to rise."
Taxable equivalent net interest income increased $4.5 million or 18.4% for
the fourth quarter of 2002 and $19.1 million or 20.5% for the year ended
December 31, 2002 compared to the corresponding periods in 2001. The
increase resulted primarily from earning asset growth related to the
acquisition of American. For the fourth quarter and the year ended
December 31, 2002, average earning assets increased $742.0 million or
32.4% and $619.6 million or 27.7%, respectively, compared to the
corresponding periods in 2001. The increase in net interest income due
to earning asset growth was partially offset by a decrease in the net
interest margin in 2002. For the fourth quarter and the year ended
December 31, 2002 the net interest margin was 3.80% and 3.93%, respectively,
as compared to 4.26% and 4.17%, respectively, for the corresponding periods
in 2001. The margin decrease resulted from a combination of factors,
including lower-margin acquired net assets of American, rate compression
between loan and deposit products, commercial and residential mortgage
refinancing at historically low interest rates, as well as the continued
run off in higher-yielding but less profitable indirect automobile lending
and reduced commercial loan demand due to uncertain economic conditions in
the business sector.
Non-interest income, excluding net securities gains, increased $0.9 million
or 14.5% for the fourth quarter of 2002 and $2.7 million or 11.5% for the
year ended December 31, 2002, compared to the corresponding periods in 2001.
The increase related to growth in deposit activity fees due to the American
transaction as well as increases in ATM income and debit card interchange
income. The market value of trust assets under management was $2.3 billion
at December 31, 2002 compared to $2.8 billion at December 31, 2001 and $2.2
billion at September 30, 2002. Despite the decline in the market value of
trust assets due to equity market performance, trust fees increased to $3.2
million or 8.0% for the fourth quarter of 2002 as compared to the same
period in 2001. Trust fees remained consistent at $11.5 million for the
years ended December 31, 2002 and 2001 with managed mutual fund asset fees
and higher estate fees helping to offset the impact of reduced market values.
The increase in net securities gains for the year ended December 31, 2002,
as compared to the corresponding period in 2001, resulted primarily from
sales of U.S. Agency securities to improve liquidity and reposition the
securities portfolio primarily after the acquisition of American.
The provision for loan losses increased $1.0 million or 58.2% for the fourth
quarter of 2002 and $3.4 million or 56.1% for the year ended December 31,
2002, compared to the corresponding periods in 2001, primarily due to the
larger size of the total loan portfolio as a result of the American
acquisition and higher loan charge-offs. Net loan charge-offs as a
percentage of average total loans on an annualized basis for the fourth
quarter of 2002 and for the year ended December 31, 2002 were 0.53% and 0.50%,
respectively, compared to 0.38% and 0.34% for the corresponding periods in
2001.
The allowance for loan losses at December 31, 2002 was $25.1 million,
compared to $20.8 million for 2001. The allowance for loan losses as a
percentage of total loans was 1.38% at December 31, 2002 and 1.35% at
December 31, 2001. The allowance for loan losses provided coverage of
2.48 times non-performing loans, or 1.13 times non-performing loans plus
loans past due 90 days or more as of December 31, 2002. Non-performing
loans as a percentage of total loans were 0.56% at December 31, 2002 up
from 0.51% at December 31, 2001.
Non-interest expenses, excluding non-recurring expenses, increased $1.8
million or 10.1% and $9.5 million or 14.7% compared to the fourth quarter
and for the year ended December 31, 2001, respectively. The increase was
related primarily to expansion of internal operations and personnel
and new banking offices acquired in the American transaction. In addition,
pension and health care costs were significant contributors to higher
employee benefit expense. Due to reduced pension asset values and a lower
pension liability discount rate assumption, WesBanco recorded a $3.0 million,
net of tax, reduction to shareholders' equity and other comprehensive income
as of December 31, 2002. WesBanco anticipates a significantly higher
pension expense in 2003 as a result of these factors and a reduced long-term
rate of return assumption. Non-recurring expenses of $0.4 million and $2.5
million were recorded in the fourth quarter and for the year ended
December 31, 2002, respectively, related to the American acquisition.
On January 1, 2002, WesBanco adopted Statement of Financial Accounting
Standards No. 142, "Goodwill and Other Intangible Assets", whereby goodwill
is not amortized but is subject to annual impairment tests. In accordance
with the new standard, no goodwill amortization was recorded for the year
ended December 31, 2002. WesBanco recorded $1.3 million in goodwill
amortization for 2001. In connection with the American acquisition,
WesBanco recorded $0.5 million and $1.8 million in core deposit intangible
amortization as a component of non-interest expense for the fourth quarter
of 2002 and for the year ended December 31, 2002, respectively. Total
goodwill and core deposit intangible amounts recorded in the acquisition
amounted to $30.6 million and $11.1 million, respectively.
The provision for income taxes decreased $0.4 million or 12.6% as pre-tax
income increased $1.5 million or 14.2% for the fourth quarter of 2002, and
decreased $1.7 million or 13.5% as pre-tax income increased $4.2 million or
10.1% for the year ended December 31, 2002, as compared to the same
periods in 2001. The effective tax rate declined in the fourth quarter of
2002 to 22% from 29%, and to 23% from 30% for the year ended December 31,
2002, compared to the same periods in 2001, respectively. The decline in the
effective tax rate resulted primarily from an increase in state and municipal
tax-exempt interest both from the acquired American investment securities
portfolio and additional purchases. The effective tax rate was also
reduced by certain prior years' tax settlements. For 2003, the current
anticipated effective tax rate will approximate 20%.
Total loans increased $281.2 million or 18.3% for the year ended December 31,
2002. Excluding American, loan balances decreased during the fourth quarter
of 2002 and for the year ended December 31, 2002, compared to the
corresponding periods in 2001, reflecting declines in consumer and real
estate loans, which more than offset a modest increase in commercial loans.
The reduction in consumer loans resulted from tightening credit standards for
indirect automobile lending, along with the increased competition for these
loans from automobile manufacturing finance companies offering low interest
rate loans primarily in the new car segment. The decline in real estate
loans reflected prepayments of both higher fixed rate and adjustable rate
mortgages as customers sought to lock in lower fixed rate loans.
Total deposits increased $486.5 million or 25.4% for the year ended December
31, 2002, the majority of which was related to American. Excluding American,
deposit growth during the fourth quarter of 2002 and for the year ended
December 31, 2002, compared to the corresponding periods in 2001, consisted
of increases in money market deposit accounts and interest bearing demand
deposits. Customers shifted balances out of certificates of deposits and
savings account products in favor of competitively-priced short-term prime
rate money market products.
Shareholders' equity remained strong for the year ended December 31, 2002,
highlighted by a Tier I leverage ratio of 8.53%. Book value increased to
$15.89 per share at December 31, 2002 from $14.46 per share at December 31,
2001, and WesBanco's common stock price increased 10.7% from $21.13 at
December 31, 2001 to $23.39 at December 31, 2002.
As of December 31, 2002, WesBanco had repurchased a total of 508,599 shares
through the stock repurchase plan approved by the Board on June 20, 2002.
Under the current plan, WesBanco can repurchase up to one million shares of
WesBanco common stock representing approximately 4.7% of outstanding shares
on the open market. The timing, price and quantity of purchases are at the
discretion of WesBanco and the program may be discontinued or suspended at
any time. For the year ended December 31, 2002, WesBanco repurchased a total
of 928,201 shares through its stock repurchase plans.
WesBanco is a multi-state bank holding company presently operating through
72 banking offices in West Virginia, Ohio and Pennsylvania. The American
acquisition increased WesBanco's market share in the tri-state area with
expansion into new markets in Washington, Pennsylvania and Columbus and
Cambridge, Ohio. WesBanco is the second largest bank holding company
headquartered in West Virginia. Its banking subsidiary is WesBanco Bank, Inc.,
headquartered in Wheeling, West Virginia. In addition, WesBanco operates an
insurance company, WesBanco 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. The information contained in this press release should be
read in conjunction with the company's most recent annual report filed with
the Securities and Exchange Commission on Form 10-K for the year ended
December 31, 2001 and the quarterly report on Form 10-Q for the quarter
ended September 30, 2002. Forward-looking statements 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. 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
and reform, or unanticipated 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.
WESBANCO, INC.
Consolidated Selected Financial Highlights
December 31, 2002 and 2001
- ------------------------------------------------------------------------------
(unaudited, dollars in thousands)
Balance sheet (period end)
- -------------------------- September 30, December 31,
------------- --------------------------
Assets 2002 2002 2001
---------- --------------------------
Cash and due from banks $ 86,612 $ 80,101 $ 81,563
Due from banks - Interest bearing 913 984 712
Federal funds sold 1,900 --- ---
Securities 1,160,909 1,193,896 758,470
Loans:
Commercial 729,230 759,690 569,193
Real Estate 761,205 748,195 657,784
Personal 330,507 313,000 312,718
---------- ---------- ----------
Total loans 1,820,942 1,820,885 1,539,695
Allowance for loan losses (24,893) (25,080) (20,786)
---------- ---------- ----------
Net loans 1,796,049 1,795,805 1,518,909
---------- ---------- ----------
Premises and equipment 56,473 55,725 50,252
Goodwill 46,940 49,520 18,878
Other intangibles 14,868 9,310 ---
Other assets 68,097 111,890 45,670
---------- ---------- ----------
Total Assets $3,232,761 $3,297,231 $2,474,454
========== ========== ==========
Liabilities and Shareholders' Equity
Non-interest bearing
demand deposits $ 291,479 $ 301,262 $ 244,422
Interest bearing demand deposits 271,912 276,131 245,447
Money market accounts 486,367 508,062 406,727
Savings deposits 365,614 357,290 252,438
Certificates of deposit 974,447 957,211 764,424
---------- ---------- ----------
Total deposits 2,389,819 2,399,956 1,913,458
---------- ---------- ----------
Other borrowings 447,047 518,958 279,131
Trust preferred securities 12,650 12,650 ---
Other liabilities 52,018 40,496 23,664
Shareholders' equity 331,227 325,171 258,201
---------- ---------- ----------
Total Liabilities and
Shareholders' Equity $3,232,761 $3,297,231 $2,474,454
========== ========== ==========
Average balance sheet and net interest analysis
- -----------------------------------------------
For the Three Months Ended For the Year Ended
December 31, December 31,
--------------------------------------- ---------------------------------------
2002 2001 2002 2001
------------------ ------------------ ------------------ ------------------
Average Average Average Average Average Average Average Average
Volume Rate Volume Rate Volume Rate Volume Rate
------------------ ------------------ ------------------ ------------------
Loans, net of unearned income $1,819,943 6.71% $1,547,775 7.73% $1,789,078 6.98% $1,559,145 8.10%
Securities:
Taxable 810,819 4.63% 494,279 5.69% 703,308 4.93% 425,006 6.05%
Tax-exempt 368,738 7.45% 222,533 7.74% 327,331 7.51% 209,268 7.59%
------------------ ------------------ ------------------ ------------------
Total securities 1,179,557 5.51% 716,812 6.33% 1,030,639 5.75% 634,274 6.56%
Federal funds sold 31,694 1.55% 24,571 2.28% 35,683 1.69% 42,421 3.98%
------------------ ------------------ ------------------ ------------------
Total earning assets 3,031,194 6.19% 2,289,158 7.23% 2,855,400 6.47% 2,235,840 7.58%
Other assets 248,962 179,115 235,070 167,593
---------- ---------- ---------- ----------
Total Assets $3,280,156 $2,468,273 $3,090,470 $2,403,433
========== ========== ========== ==========
Liabilities and
Shareholders' Equity
Interest bearing
demand deposits $ 277,884 0.49% $ 240,131 1.06% $ 267,944 0.63% $ 245,712 1.60%
Money market accounts 504,617 2.37% 392,947 3.16% 468,696 2.75% 374,100 3.74%
Savings deposits 359,674 0.92% 252,674 1.49% 352,333 1.09% 252,606 1.85%
Certificates of deposit 966,611 3.82% 778,425 5.20% 946,425 4.07% 776,852 5.62%
------------------ ------------------ ------------------ ------------------
Total interest
bearing deposits 2,108,786 2.54% 1,664,177 3.56% 2,035,398 2.80% 1,649,270 4.02%
------------------ ------------------ ------------------ ------------------
Other borrowings 502,261 3.51% 278,106 3.29% 416,085 3.54% 245,390 4.13%
Trust preferred securities 12,650 8.62% --- --- 10,603 8.65% --- ---
------------------ ------------------ ------------------ ------------------
Total interest bearing
liabilities 2,623,697 2.76% 1,942,283 3.52% 2,462,086 2.95% 1,894,660 4.03%
------------------ ------------------ ------------------ ------------------
Non-interest bearing demand 292,616 238,176 279,560 228,936
Other liabilities 35,661 27,600 30,762 22,759
Shareholders' equity 328,182 260,214 318,062 257,078
---------- ---------- ---------- ----------
Total Liabilities and
Shareholders' Equity $3,280,156 $2,468,273 $3,090,470 $2,403,433
========== ========== ========== ==========
Taxable equivalent
net yield on average
earning assets 3.80% 4.26% 3.93% 4.17%
===== ===== ===== =====
WESBANCO, INC.
Consolidated Selected Financial Highlights
December 31, 2002 and 2001
- -----------------------------------------------------------------------------
(unaudited, dollars in thousands, except per share amounts)
For the Three
Months Ended For the Year Ended
December 31, December 31,
-------------------- --------------------
Statement of income 2002 2001 2002 2001
- ------------------- --------- --------- --------- ---------
Interest income $ 44,734 $ 40,131 $ 176,155 $ 163,939
Interest expense 18,226 17,224 72,555 76,354
--------- --------- --------- ---------
Net interest income 26,508 22,907 103,600 87,585
Provision for loan losses 2,603 1,645 9,359 5,995
--------- --------- --------- ---------
Net interest income after
provision for loan losses 23,905 21,262 94,241 81,590
--------- --------- --------- ---------
Non-interest income
Trust fees 3,180 2,944 11,526 11,504
Service charges on deposits 2,889 2,387 10,818 9,182
Other income 852 715 3,617 2,596
Net securities gains 529 339 1,891 1,306
--------- --------- --------- ---------
Total non-interest income 7,450 6,385 27,852 24,588
Non-interest expense
Salaries and employee benefits 9,843 8,925 39,223 33,841
Net occupancy 1,302 961 5,012 3,998
Equipment 1,752 1,499 6,854 5,913
Other operating 6,364 6,108 23,043 20,907
Non-recurring expenses (1) 392 (90) 2,515 235
--------- --------- --------- ---------
Total non-interest expense 19,653 17,403 76,647 64,894
--------- --------- --------- ---------
Income before income taxes 11,702 10,244 45,446 41,284
Provision for income taxes 2,582 2,953 10,620 12,282
--------- --------- --------- ---------
Net income $ 9,120 $ 7,291 $ 34,826 $ 29,002
========= ========= ========= =========
Taxable equivalent net
interest income $ 28,909 $ 24,414 $ 112,200 $ 93,147
Per common share data
- ---------------------
Net income (2) $ 0.44 $ 0.41 $ 1.70 $ 1.60
Dividends declared 0.235 0.23 0.935 0.92
Book value (period end) 15.89 14.46
Tangible book value (period end) 13.02 13.40
Average shares outstanding 20,641,964 17,915,161 20,459,122 18,123,851
Period end shares outstanding 20,461,745 17,854,497
Core earnings
- -------------
Core earnings $ 9,289 $ 7,360 $ 35,598 $ 29,742
Core earnings per share 0.45 0.41 1.74 1.64
Reconciliation of core
earnings to GAAP earnings
- --------------------------
Net income $ 9,120 $ 7,291 $ 34,826 $ 29,002
--------- --------- --------- ---------
Less: Net gains on securities and
net losses on sale of assets(3) 86 213 863 726
Plus: Non-recurring expenses (3) 255 (59) 1,635 153
Plus: Amortization of goodwill --- 341 --- 1,313
--------- --------- --------- ---------
Core earnings $ 9,289 $ 7,360 $ 35,598 $ 29,742
========= ========= ======== =========
Net income per share $ 0.44 $ 0.41 $ 1.70 $ 1.60
--------- --------- -------- ---------
Less: Net gains on securities and
net losses on sale of assets(3) 0.00 0.01 0.04 0.04
Plus: Non-recurring expenses (3) 0.01 0.00 0.08 0.01
Plus: Amortization of goodwill 0.00 0.01 0.00 0.07
--------- --------- -------- ---------
Core earnings per share $ 0.45 $ 0.41 $ 1.74 $ 1.64
========= ========= ======== =========
(1) non-recurring expenses are primarily related to the acquisition of
American Bancorporation.
(2) basic and diluted were the same.
(3) tax effected.
WESBANCO, INC.
Consolidated Selected Financial Highlights
December 31, 2002 and 2001
- ------------------------------------------------------------------------------
(unaudited, dollars in thousands)
For the
Three Months Ended For the Year Ended
December 31, December 31,
------------------- ------------------
Profitability ratios (annualized) 2002 2001 2002 2001
- --------------------------------- -------- -------- -------- --------
Return on average assets 1.10% 1.17% 1.13% 1.21%
Return on average equity 11.02% 11.12% 10.95% 11.28%
Yield on earning assets (1) 6.19% 7.23% 6.47% 7.58%
Cost of interest bearing liabilities 2.76% 3.52% 2.95% 4.03%
Net interest margin (1) 3.80% 4.26% 3.93% 4.17%
Efficiency (1), (2) 53.16% 56.23% 53.44% 54.25%
December 31,
Asset quality data ----------------------
- ------------------ 2002 2001
Non-performing assets: ---------- ----------
Non-accrual loans $ 7,480 $ 4,030
Renegotiated loans 2,646 3,756
---------- ----------
Total non-performing loans 10,126 7,786
Other real estate and repossessed assets 4,213 3,215
---------- ----------
Total non-performing loans and assets $ 14,339 $ 11,001
========== ==========
Loans past due 90 days or more $ 12,105 $ 10,496
Allowance for loan losses 25,080 20,786
Net loan charge-offs:
Quarter-to-date 2,415 1,465
Year-to-date 8,968 5,239
Allowance for loan losses/non-performing loans 2.48X 2.67X
Allowance for loan losses/non-performing loans and
past due 90 days or more 1.13X 1.14X
Allowance for loan losses/total loans 1.38% 1.35%
Non-performing assets/total assets 0.43 0.44
Non-performing assets/total loans, other real
estate and repossessed assets 0.79 0.71
Non-performing loans/total loans 0.56 0.51
Non-performing loans and loans past due 90
days or more/allowance for loan losses 88.64 87.95
Net loan charge-offs(annualized)/average loans:
Quarterly 0.53 0.38
Annually 0.50 0.34
Regulatory Guidelines
---------------------
Well
Capital ratios Minimum Capitalized
- ----------------- ------- -----------
Tier I leverage capital 4.00 % 5.00 % 8.53% 9.62%
Tier I risk-based capital 4.00 6.00 12.95 14.09
Total risk-based capital 8.00 10.00 14.13 15.34
(1) taxable equivalent basis.
(2) excludes amortization of goodwill, non-recurring items, net securities
gains and net losses on sale of assets.