EXHIBIT 19
Report furnished to Shareholders
SECOND QUARTER ENDED
JUNE 30, 1997
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First West Virginia Bancorp Inc. and Subsidiaries
FINANCIAL HIGHLIGHTS
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(In Thousands, Except Per Share Data)
June 30,
1997 1996
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(Unaudited)
Financial Position
at Quarter End:
Total Assets $ 150,621 $ 137,698
Total Deposits $ 133,404 $ 120,336
Total Loans, net of
unearned income $ 86,143 $ 74,021
Total Investment Securities $ 54,086 $ 48,937
Shareholders' Equity $ 13,305 $ 11,926
Book Value per share of
Common Stock $ 16.51 $ 14.80
For the Six Months Ended
Net Income $ 1.18 $ 0.97
Cash Dividends $ 0.40 $ 0.35
Return on Average Assets 1.28% 1.18%
Return on Average Equity 14.69% 13.27%
For the Three Months Ended
Net Income $ 0.59 $ 0.50
Cash Dividends $ 0.20 $ 0.19
Return on Average Assets 1.25% 1.19%
Return on Average Equity 14.39% 13.82%
Market Information:
Price range of common stock
per share for the quarter*
High $ 27.88 $ 22.00
Low $ 25.00 $ 21.00
* 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 second quarter of 1997. Consolidated net income
for the three months ended June 30, 1997 was
$474,485 or $.59 per share as compared to $405,277 or
$.50 per share as of June 30, 1996. The increase in
earnings during the second quarter of 1997 as
compared to 1996 was primarily due to increased net
interest income and noninterest income, offset in part
by increased operating expenses and the provision for
loan losses. Operational earnings were improved with
net interest income increasing $169,111 or 11.2%, to
$1,683,813 for the three months ended June 30, 1997
as compared to the same period in 1996 due primarily
to the growth in the loan portfolio.
For the three months ended June 30, 1997, the
return on average assets (ROA) was 1.25% and the
return on average equity (ROE) was 14.39%. The
ROA and ROE earned during the same period last
year were 1.19% and 13.82%, respectively. The book
value per share was $16.51 at June 30, 1997 as
compared to $14.80 per share at June 30, 1996.
Dividends for the second quarter of 1997 were $.20
per share, up from the $.19 per share paid during the
second quarter of 1996.
Net loans increased to $84,953,016 at June 30,
1997, up 16.6%, from June 30, 1996. Total deposits
increased 10.9% from $120,336,484 at June 30, 1996 to
$133,404,318 at June 30, 1997. Total stockholders'
equity rose to $13,304,925, an 11.6% increase over the
$11,926,437 reported at June 30, 1996.
During the second quarter of 1997, an application
was filed with the Office of the Comptroller of the
Currency pursuant to an Agreement of Merger and
Plan of Reorganization between First West Virginia
Bancorp, Inc., and two of its subsidiary banks,
Progressive Bank, N.A., Wheeling, West Virginia and
Progressive Bank, N.A. - Bellaire. Pursuant to the
agreement, Progressive Bank, N.A.- Bellaire will be
merged with and into Progressive Bank, N.A. and will
operate as a branch bank of Progressive Bank, N.A.
The merger of the two subsidiary banks, which is
subject to approval by regulatory authorities and the
shareholders of Progressive Bank, N.A. - Bellaire, is
expected to be completed during the third quarter of
1997.
A continued strong performance during 1997 is
anticipated and I extend my gratitude 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) June 30, June 30,
1997 1996
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ASSETS
Cash and Due From Banks $ 4,564,501 $ 4,212,794
Interest Bearing Due From Banks 80,999 3,078,987
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Total cash and cash equivalents 4,645,500 7,291,781
Federal Funds Sold 1,986,000 3,643,000
Investment Securities
Available for Sale (at market value) 48,564,245 43,819,899
Held to Maturity - (market value of
$ 5,549,659 at June 30, 1997;
and $ 5,103,719 at June 30, 1996) 5,522,065 5,117,027
Loans 86,142,661 74,020,562
Less allowance for possible loan losses (1,189,645) (1,182,088)
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Net loans 84,953,016 72,838,474
Premises and equipment, net 3,153,863 3,390,800
Accrued Income Receivable 1,112,938 961,162
Other assets 677,335 614,747
Intangible assets 6,072 21,600
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Total Assets $ 150,621,034 $ 137,698,490
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LIABILITIES
Noninterest bearing deposits:
Demand $ 12,588,960 $ 12,661,814
Interest bearing deposits
Demand 21,985,330 22,358,580
Savings 44,009,051 39,695,873
Time 54,820,977 45,620,217
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Total Deposits 133,404,318 120,336,484
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Repurchase agreements 3,153,100 4,885,612
Accrued Interest on deposits 383,327 324,428
Other Liabilities 375,364 225,529
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Total Liabilities 137,316,109 125,772,053
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STOCKHOLDERS' EQUITY
Common Stock - 2,000,000 shares authorized at $5 par value;
806,107 shares issued at June 30, 1997
775,268 shares issued at June 30, 1996 4,030,535 3,876,340
Surplus 3,764,000 3,166,340
Retained Earnings 5,563,952 5,121,590
Net Unrealized Loss on securities available for sale (53,562) (237,833)
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Total stockholders' equity 13,304,925 11,926,437
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Total liabilities and stockholders' equity $ 150,621,034 $ 137,698,490
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First West Virginia Bancorp Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME
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(Unaudited) Three Months Ended Six Months Ended
June 30, June 30,
1997 1996 1997 1996
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INTEREST INCOME
Interest and fees on loans and lease financing:
Taxable $ 1,890,729 $ 1,635,461 $ 3,662,697 $ 3,250,311
Tax-exempt 29,054 25,046 53,373 51,047
Investment securities:
Taxable 760,015 635,207 1,461,414 1,229,033
Tax-exempt 66,252 57,923 136,967 117,266
Dividends 5,371 4,746 10,545 9,932
Interest on deposits in banks 6,014 38,129 24,229 48,238
Interest on federal funds sold 87,730 76,943 194,279 140,005
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Total interest income 2,845,165 2,473,455 5,543,504 4,845,832
INTEREST EXPENSE
Deposits 1,109,993 927,948 2,145,724 1,838,035
Other borrowings 51,359 30,805 103,597 36,730
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Total interest expense 1,161,352 958,753 2,249,321 1,874,765
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Net interest income 1,683,813 1,514,702 3,294,183 2,971,067
PROVISION FOR POSSIBLE LOAN LOSSES 36,000 14,400 61,500 28,800
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Net interest income after provision
for possible loan losses 1,647,813 1,500,302 3,232,683 2,942,267
NONINTEREST INCOME
Service charges 104,717 92,116 196,041 173,422
Securities gains (losses) - 339 - (711)
Other operating income 42,968 46,121 119,678 97,436
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Total noninterest income 147,685 138,576 315,719 270,147
NONINTEREST EXPENSES
Salary and employee benefits 567,580 519,095 1,142,502 1,038,401
Net occupancy and equipment expenses 202,326 213,697 400,866 420,488
Other operating expenses 315,601 302,599 580,954 589,399
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Total noninterest expense 1,085,507 1,035,391 2,124,322 2,048,288
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Income before income taxes 709,991 603,487 1,424,080 1,164,126
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INCOME TAXES 235,506 198,210 472,988 384,488
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Net income $ 474,485 $ 405,277 $ 951,092 $ 779,638
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WEIGHTED AVERAGE SHARES OUTSTANDING 806,107 806,107 806,107 806,107
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EARNINGS PER COMMON SHARE $ 0.59 $ 0.50 $ 1.18 $ 0.97
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First West Virginia Bancorp, Inc.
DIRECTORS
George F. Beneke
Chairman of the Board,
First West Virginia Bancorp, Inc.
Retired 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
Chairman of the Board,
Progressive Bank, N.A.
Attorney at Law
Karl W. Neumann
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 - Chief Executive Officer
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
Connie R. Tenney, Vice President
David E. Yaeger, Vice President
Stephanie A. LaFlam, Secretary
James R. Davis, Auditor
SUBSIDIARY BANK DIRECTORS AND OFFICERS
Progressive Bank N.A.
DIRECTORS
Dominic V. Agostino James C. Inman, Jr.
George F. Beneke Howard D. Long
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
OFFICERS
R. Clark Morton, 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
Debra M. Tomlin, Loan Officer
Bryan S. Ramsey, Loan Officer
James R. Davis, Auditor
Progressive Bank N.A. - Buckhannon
DIRECTORS
Margaret D. Brown Dale F. Riggs
William L. Fury Ronald L. Solomon
Charles K. Graham Douglas M. Stewart
J. Burton Hunter III Connie R. Tenney
David R. Rexroad J. David Thomas
Rickie E. Rice
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
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First West Virginia Bancorp Inc. and Subsidiaries
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Progressive Bank, N.A.
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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