EXHIBIT 19
Report furnished to Shareholders
37
THIRD QUARTER ENDED
SEPTEMBER 30, 1996
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First West Virginia Bancorp Inc. and Subsidiaries
FINANCIAL HIGHLIGHTS
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(In Thousands, Except Per Share Data)
September 30,
1996 1995
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(Unaudited)
Financial Position
at Quarter End:
Total Assets $ 140,551 $ 125,802
Total Deposits $ 123,167 $ 113,156
Total Loans, net of
unearned income $ 76,819 $ 69,071
Total Investment Securities $ 51,858 $ 45,985
Shareholders' Equity $ 12,290 $ 11,415
Book Value per share of
Common Stock $ 15.85 $ 14.72
For the Nine Months Ended
Net Income $ 1.57 $ 1.38
Cash Dividends $ .55 $ .38
Return on Average Assets 1.20% 1.16%
Return on Average Equity 13.67% 13.13%
For the Three Months Ended
Net Income $ .56 $ .54
Cash Dividends $ .19 $ .15
Return on Average Assets 1.24% 1.31%
Return on Average Equity 14.38% 14.78%
Market Information:
Price range of common stock
per share for the quarter*
High $ 22.00 $ 21.75
Low $ 21.38 $ 18.00
* Price range of common stock was
established on March 8, 1995. The high and low
sales prices of the common stock of the Holding
Company presented were as reported by the
American Stock Exchange.
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Dear Shareholders,
I am pleased to report to you the financial performance of First West
Virginia Bancorp, Inc. for the third quarter of 1996. Consolidated net income
for the three months ended September 30, 1996 was $435,046 or $.56 per share as
compared to $418,489 or $.54 per share as of September 30, 1995. The increase
in earnings during the third quarter of 1996 as compared to 1995 was primarily
due to increased net interest income, offset in part by increased operating
expenses; increased provision for loan losses; and decreased noninterest income.
Operational earnings were improved with net interest income increasing $152,550
or 10.8%, to $1,562,518 for the three months ended September 30, 1996 as
compared to the same period in 1995 due primarily to the growth in the loan
portfolio.
For the three months ended September 30, 1996, the return on average assets
(ROA) was 1.24% and the return on average equity (ROE) was 14.38%. The ROA and
ROE earned during the same period last year were 1.31% and 14.78%, respectively.
The book value per share was $15.85 at September 30, 1996 as compared to $14.72
per share at September 30, 1995.
Net loans increased to $75,636,967 at September 30, 1996, up 11.4%, from
September 30, 1995. Total deposits increased 8.8% from $113,155,548 at
September 30, 1995 to $123,167,175 at September 30, 1996. Total stockholders'
equity rose to $12,290,398, a 7.7% increase over the $11,414,610 reported at
September 30, 1995.
Dividends for the third quarter of 1996 were $.19 per share, up from the
$.15 per share paid during the third quarter of 1995.
As always, my gratitude goes to our customers, shareholders, directors and
employees for their ongoing support.
Sincerely,
Ronald L. Solomon
President and Chief Executive Officer
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First West Virginia Bancorp Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS
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(Unaudited) September 30, September 30,
1996 1995
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ASSETS
Cash and Due From Banks $ 5,262,975 $ 4,995,601
Interest Bearing Due From Banks 1,058,330 58,330
Federal Funds Sold 1,636,000 2,202,000
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Total cash and cash equivalents 7,957,305 7,255,931
Investment Securities
Held to Maturity - Market value of
$ 5,576,246 at September 30, 1996 ;
and $ 24,875,711 at September 30, 1995 5,576,457 25,219,508
Available for Sale (at market value) 46,281,258 20,765,111
Loans 76,819,205 69,071,025
Less allowance for possible loan losses (1,182,238) (1,154,974)
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Net loans 75,636,967 67,916,051
Premises and equipment, net 3,314,612 2,948,290
Accrued Income Receivable 1,170,138 1,067,096
Other assets 601,687 581,988
Intangible assets 12,713 48,261
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Total Assets $ 140,551,137 $ 125,802,236
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LIABILITIES
Noninterest bearing deposits:
Demand deposits $ 12,001,582 $ 10,911,287
Interest bearing deposits
Demand deposits 24,754,656 22,571,685
Savings 38,384,091 41,338,405
Time deposits 48,026,846 38,334,171
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Total Deposits 123,167,175 113,155,548
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Fed Funds Purchased and securities sold
under agreements to repurchase 4,452,047 627,333
Accrued Interest on deposits 319,854 283,847
Other Liabilities 321,663 320,898
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Total Liabilities 128,260,739 114,387,626
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STOCKHOLDERS' EQUITY
Common Stock - 2,000,000 shares authorized
at $5 par value; 775,268 shares issued at September 30, 1996
and 760,232 shares issued at September 30, 1995 3,876,340 3,801,160
Surplus 3,166,340 2,918,246
Retained Earnings 5,409,335 4,662,950
Net Unrealized Loss on securities available for sale (161,617) 32,254
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Total stockholders' equity 12,290,398 11,414,610
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Total liabilities and stockholders' equity $ 140,551,137 $ 125,802,236
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First West Virginia Bancorp Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
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(Unaudited) Three Months Ended Nine Months Ended
September 30, September 30,
1996 1995 1996 1995
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INTEREST INCOME
Interest and fees on loans and lease financing:
Taxable $ 1,704,911 $ 1,566,805 $ 4,955,222 $ 4,379,905
Tax-exempt 27,242 22,912 78,289 55,021
Investment Securities:
Taxable 662,236 589,563 1,891,269 1,721,023
Tax-exempt 63,384 62,371 180,650 183,621
Dividends 5,203 5,111 15,135 14,541
Other interest income 26,246 608 74,484 1,661
Interest on Federal Funds Sold 66,998 64,717 207,003 214,832
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Total interest income 2,556,220 2,312,087 7,402,052 6,570,604
INTEREST EXPENSE
Deposits 951,633 896,187 2,789,668 2,500,004
Interest on Fed Funds Purchased and
securities sold under agreements to repurchase 42,069 5,932 78,799 11,725
Other borrowings -- -- -- --
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Total interest expense 993,702 902,119 2,868,467 2,511,729
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Net interest income 1,562,518 1,409,968 4,533,585 4,058,875
PROVISION FOR POSSIBLE LOAN LOSSES 16,800 3,800 45,600 46,600
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Net interest income after provision
for possible loan losses 1,545,718 1,406,168 4,487,985 4,012,275
NONINTEREST INCOME
Service charges and other fees 97,511 105,889 270,933 282,935
Securities gains (losses) -- -- (711) 65,475
Other operating income 47,927 45,992 145,363 148,076
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Total noninterest income 145,438 151,881 415,585 496,486
NONINTEREST EXPENSES
Salary and employee benefits 538,000 495,119 1,584,808 1,471,296
Net occupancy expense of premises 74,339 64,060 236,406 203,091
Other operating expenses 422,494 357,463 1,261,907 1,221,524
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Total noninterest expense 1,034,833 916,642 3,083,121 2,895,911
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Income before income taxes 656,323 641,407 1,820,449 1,612,850
-------------- -------------- --------------- ---------------
INCOME TAXES 221,277 222,918 605,765 541,536
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Net income $ 435,046 $ 418,489 $ 1,214,684 $ 1,071,314
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WEIGHTED AVERAGE SHARES OUTSTANDING 775,268 775,268 775,268 775,268
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EARNINGS PER COMMON SHARE $ .56 $ .54 $ 1.57 $ 1.38
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First West Virginia Bancorp, Inc.
DIRECTORS
George F. Beneke
Chairman of the Board,
First West Virginia Bancorp, Inc.
Attorney at Law
President, The Beneke Corporation
Sylvan J. Dlesk
President, Dlesk, Inc.
Robert A. Heyl
Retired Business Owner
Ben R. Honecker
Attorney at Law
Laura G. Inman
Vice Chairman,
First West Virginia Bancorp, Inc.
Senior Vice President,
Progressive Bank, N.A.
James C. Inman, Jr.
Retired Bank Executive
R. Clark Morton
Attorney at Law
Karl W. Neumann
Chairman of the Board,
Progressive Bank, N.A.
Retired Insurance Executive
Thomas A. Noice
Chairman of the Board,
Progressive Bank, N.A. - Bellaire
Peter C. Schuetz
Retired Dairy Consultant
Ronald L. Solomon
President, First West Virginia Bancorp, Inc.
Vice Chairman - Chief Executive Officer,
Progressive Bank, N.A.
Vice Chairman,
Progressive Bank, N.A.- Buckhannon
OFFICERS
George F. Beneke, Chairman of the Board
Laura G. Inman, Vice Chairman
Ronald L. Solomon, President and
Chief Executive Officer
Charles K. Graham, Executive Vice President - Loans
Beverly A. Barker, Senior Vice President, Treasurer
Francie P. Reppy, Controller
Stephanie A. LaFlam, Secretary
James R. Davis, Auditor
SUBSIDIARY BANK DIRECTORS AND OFFICERS
Progressive Bank N.A.
DIRECTORS
Dominic V. Agostino Howard D. Long
George F. Beneke W. H. Lucarelli
Dr. Clyde D. Campbell R. Clark Morton
Sylvan J. Dlesk Karl W. Neumann
Harry N. Duvall William T. Nickerson
Charles K. Graham Edward P. Otte
Ben R. Honecker William G. Petroplus
T. Stewart Hopkins Peter C. Schuetz
Laura G. Inman Ronald L. Solomon
James C. Inman, Jr.
OFFICERS
Karl W. Neumann, Chairman of the Board
Ronald L. Solomon, Vice Chairman & Chief Executive Officer
Charles K. Graham, President
Beverly A. Barker, Executive Vice President/Cashier
Laura G. Inman, Senior Vice President
Francie P. Reppy, Controller
Brad D. Winwood, Vice President
Gary S. Martin, Assistant Vice President/Marketing Coordinator
David E. Wharton, Assistant Vice President/Office Manager Warwood
Stephanie A. LaFlam, Secretary
Michele L. Stanley, Human Resource Manager/
Assistant Office Manager Warwood
Mitzi K. Mattern, Credit Card Manager/Office Manager Wellsburg
Susan E. Reinbeau, Office Manager Woodsdale
Lisa M. Minor, Office Manager Moundsville
Robin L. Snyder, Operations Supervisor Wellsburg
Laura K. Snedeker, Manager Bookkeeping/Proof Operations
Patricia L. Smith, Data Processing Manager
Debra M. Tomlin, Loan Officer
Bryan S. Ramsey, Loan Officer
James R. Davis, Auditor
Progressive Bank N.A. - Buckhannon
DIRECTORS
Charles K. Graham Ronald L. Solomon
J. Burton Hunter, III Douglas M. Stewart
David R. Rexroad Connie R. Tenney
Rick E. Rice J. David Thomas
Dale F. Riggs William L. Fury
OFFICERS
Dale F. Riggs, Chairman
Ronald L. Solomon, Vice Chairman
Connie R. Tenney, President, Chief Executive Officer, Cashier and Secretary
Larry J. Chidester, Assistant Vice President
J. Burton Hunter, III, Assistant Secretary
Cathy Sue Wingler, Assistant Cashier
Robin K. Forinash, Office Manager Weston
Progressive Bank, N.A. - Bellaire
DIRECTORS
George F. Beneke Clarence J. Ramsay
Robert R. Cicogna T. L. Ring, M.D.
Gary P. DeVendra Thomas L. Sable
Robert A. Heyl Ronald L. Solomon
C. Gary Hill Kathy L. Supinsky
Thomas A. Noice David E. Yaeger
OFFICERS
Thomas A. Noice, Chairman
David E. Yaeger, President & Chief Executive Officer
Deborah A. Kloeppner, Vice President and Secretary
Shirrel A. Czap, Assistant Vice President
Helen V. Forbes, Cashier
Carma Suchan, Assistant Operations Officer
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First West Virginia Bancorp Inc. and Subsidiaries
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Progressive Bank, National Association
1701 Warwood Avenue
Wheeling, WV 26003
(304) 277-1100
875 National Road
Wheeling, WV 26003
(304) 233-0060
744 Charles Street
Wellsburg, WV 26070
(304) 737-0821
1306 Lafayette Avenue
Moundsville, WV 26041
(304) 843-2688
Progressive Bank, N.A. - Buckhannon
West Main & Locust Streets
Buckhannon, WV 26201
(304) 472-0052
10 Market Place
Weston, WV 26452
(304) 269-0300
Progressive Bank, N.A. - Bellaire
426 34th Street
Bellaire, OH 43906
(614) 676-3141
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First West Virginia Bancorp Inc. and Subsidiaries
Corporate Information
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Corporate Office:
First West Virginia Bancorp, Inc.
1701 Warwood Avenue
Wheeling, WV 26003
(304) 277-1100
Transfer Agent
Any inquiries related to stockholder
records, stock transfers, changes of
ownership, and changes of address should be
sent to the transfer agent at the following
address:
Chase Mellon Shareholder Services
85 Challenger Road
Overpeck Centre
Ridgefield Park, New Jersey 07660
(800) 756-3353
Stock Trading Information:
First West Virginia Bancorp, Inc.'s common
stock is traded on the American Stock Exchange,
Inc. primary list under the symbol FWV.
Analysts, investors, and others seeking the
current market value of the stock and
additional information should contact
Ronald L. Solomon, President, First West
Virginia Bancorp, Inc., 875 National Road,
Wheeling, WV 26003. (304) 233-0060
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