NEWS FOR IMMEDIATE RELEASE
Tuesday, July 1, 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, Inc. Redeems All Outstanding 8.50% Cumulative Trust Preferred
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Securities and Received $30 Million From Two Pooled Trust Preferred
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Transactions.
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WesBanco, Inc. (Nasdaq: WSBC), today announced that on June 30, 2003 it
redeemed all of the 8.50% Junior Subordinated Deferrable Interest Debentures
held by its trust subsidiary WesBanco Capital Trust I, by redeeming
1,265,000 shares of its outstanding 8.50% Cumulative Trust Preferred
Securities (Nasdaq: WSBCP). The Trust Preferred Securities have been
redeemed at a price of $10.00 per share plus accrued and unpaid interest.
After June 30, 2003 holders of the Trust Preferred Securities will not
have any further rights other than to receive $10.00 per share plus accrued
interest through June 30, 2003, upon surrender of their Trust Preferred
Securities to the Trustee.
WesBanco has created two new trusts, WesBanco, Inc. Capital Trust II and
WesBanco, Inc. Capital Statutory Trust III for the purpose of issuing $30
million of Floating Rate Preferred Securities. These securities were
included in two pooled trust preferred programs issued by Trapeza
Funding III LLC, and by FTN Financial Capital Markets/Keefe, Bruyette &
Wood's during June 2003.
This restructuring will result in WesBanco achieving an average coupon on
the new securities of approximately 5.66% by electing a fixed rate period
for the first five years of the 30 year term securities. Thereafter they
will float at a spread above three month LIBOR of approximately 312 basis
points.
In connection with this issuance, WesBanco has taken a charge approximating
$375,000 net of tax, or $0.02 per share in the second quarter representing
unamortized issuance costs on WesBanco's 8.50% Cumulative Trust Preferred
Securities.
WesBanco is a multi-state bank holding company presently operating through
72 banking offices and 102 ATM machines in West Virginia, Central and
Eastern Ohio and Western Pennsylvania. WesBanco is the second largest bank
holding company headquartered in West Virginia with the third overall deposit
market share. 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.
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 the company's most
recent annual report filed with the Securities and Exchange Commission on
Form 10-K for the year ended December 31, 2002 and Form 10-Q for the quarter
ended March 31, 2003. Investors are cautioned that 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, 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 and Federal Deposit
Insurance Corporation; 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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