WHEELING, W.Va., Jan. 18 /PRNewswire-FirstCall/ -- Paul M. Limbert, President and Chief Executive Officer of WesBanco, Inc., a Wheeling, West Virginia based multi-state bank holding company, today announced earnings for the fourth quarter and year ended December 31, 2005.
Net income for the fourth quarter ended December 31, 2005 increased 16.8% to $10.5 million as compared to $9.0 million for the fourth quarter of 2004, while diluted earnings per share were $0.48 compared to $0.43 for the same periods, up 11.6%. Net income for the year ended December 31, 2005 increased 12.0% to $42.8 million compared to $38.2 million for the year ended December 31, 2004, while diluted earnings per share for each of the years ended December 31, 2005 and 2004 were $1.90. The 2005 fourth quarter and full year results include two recent acquisitions, Winton Financial Corporation ("Winton"), a $550 million thrift institution acquired January 3, 2005, and Western Ohio Financial Corporation ("Western Ohio"), a $400 million savings bank acquired August 31, 2004.
"We are pleased that fourth quarter 2005 earnings improved from fourth quarter 2004," said Mr. Limbert. "The improvement was achieved in a difficult operating environment that included pressure on industry-wide net interest margins caused by the flat yield curve and financial institutions competing more aggressively for loans and deposits."
Mr. Limbert remarked, "Consolidation of both of our recent acquisitions is substantially complete. We have been pleased with the efforts of all of our employees in focusing on the needs of our new market customers as we complete the process of consolidating customer records and introducing new products and services to them. We believe the diversification and growth opportunities from these larger metropolitan markets will provide continued opportunities for expansion and greater long-term shareholder value."
"Throughout the year, we have intentionally allowed the balance sheet to shrink, with cash flows from investment security maturities being used to pay down certain short-term borrowings. We believe that prudent balance sheet risk management will allow for additional flexibility in the future as we anticipate the Federal Reserve slowing its pace of increasing short-term rates, allowing spreads to return to more normalized levels. A continued focus on improving our balance sheet mix, the prior quarter's restructuring of certain departments, and the efforts of all of our employees have contributed to the improvement in fourth quarter earnings," Mr. Limbert concluded.
Highlights for the fourth quarter and year ended December 31, 2005:
- Net interest income for the fourth quarter and year ended December 31,
2005 increased $3.1 million or 10.6% and $23.1 million or 21.1%,
respectively, compared to the same periods in 2004. The net interest
margin for the fourth quarter and year ended December 31, 2005 was
3.45% and 3.48%, respectively compared to 3.52% and 3.60% for the
corresponding periods in 2004, with the decrease primarily due to the
acquired institutions having lower net interest margins than WesBanco,
as well as current market conditions. The anticipated increase in
market rates in early 2006, as well as other competitive factors, may
result in a tightening of the net interest margin over the near term.
- Non-interest income increased $0.4 million or 4.3% and $3.6 million or
10.1% over the fourth quarter and year ended December 31, 2004,
respectively. Both the fourth quarter and full year increases for 2005,
as compared to the same periods in 2004, were driven by increased trust
revenues, higher service charge revenue on deposit accounts due to an
increase in fees and in the number of accounts, including those from
the acquisitions, growth in overdraft fees and ATM/debit card
transaction income, and increased mortgage banking income from sales of
loans originated for the secondary market.
- WesBanco's provision for loan losses decreased $0.1 million or 5.6% and
increased $0.3 million or 4.0% over the fourth quarter and year ended
December 31, 2004, respectively. Net charge-offs for the year were
0.29%, down from 2004's 0.31%, despite an increase in fourth quarter
charge-offs from an increase in bankruptcies as individuals filed in
advance of new bankruptcy laws and a $0.7 million write-down of certain
under-performing commercial loans classified as held for sale at year
end. Without bankruptcy-related consumer loan charge-offs in the
fourth quarter, which totaled $1.6 million as compared to $0.4 million
for the fourth quarter of 2004, consumer charge-offs would have been
relatively flat between the two periods. The allowance for loan losses
as a percentage of total loans was 1.05% at December 31, 2005, down
from 1.18% at December 31, 2004. The decrease is due to higher charge-
offs in the third and fourth quarters, as well as the acquired
institutions having lower allowance percentages and a different
portfolio composition than WesBanco.
- Non-interest expense increased $1.5 million or 6.0% and $19.0 million
or 21.2% compared to the fourth quarter and year ended December 31,
2004. Both period increases were primarily due to increased staffing
from the acquisitions, higher health care costs and overall higher
operating costs due to the two acquisitions. Included in 2005 results
was a pre-tax charge of approximately $1.0 million in severance payouts
and related payroll taxes and health care costs relating to the
previously announced restructuring. Full-time equivalent employees at
December 31, 2005 were 1,200 compared to 1,358 immediately after the
Winton acquisition. A marketing campaign in the fourth quarter
introducing WesBanco's new branding campaign and efforts to increase
free checking account balances caused marketing expenses to increase.
- The provision for income taxes for the fourth quarter of 2005 increased
$0.6 million or 26.1% compared to 2004, and for the year ended December
31, 2005, increased $2.7 million or 30.6% compared to 2004. The
increase for both periods in 2005, compared to the same periods in
2004, was primarily due to an increase in pre-tax income, and to a
lesser extent, the acquisition of institutions that had higher
historical effective tax rates.
- Total loans increased $452.3 million or 18.2% between December 31, 2004
and December 31, 2005. The increase was primarily due to the 2005
Winton acquisition, which added approximately $409 million, net of
related mortgage loan sales, and continued organic loan growth in the
commercial and commercial real estate categories. Loan growth was slow
in the fourth quarter of 2005 due to the payoff of certain commercial
real estate loans and construction lines of credit, and the
continuation of certain risk reduction strategies. At quarter-end,
WesBanco moved approximately $6.7 million in under-performing
commercial loans, plus $20.8 million of loans associated with the
anticipated sale of the Ritchie County branches, into the category of
loans held for sale.
- Total deposits increased $302.4 million or 11.1% between December 31,
2004 and December 31, 2005 primarily due to the Winton acquisition. On
a linked-quarter basis from the third quarter of 2005, increases
occurred in non-interest bearing demand deposits and to a lesser
degree, certificates of deposit, which were offset by a decline in
money market accounts. As a result of a successful marketing campaign,
over a nine week period in the fourth quarter, WesBanco increased the
number of new free checking accounts, along with associated debit cards
and other services, with total average non-interest bearing demand
deposits up 8.3% from the fourth quarter of 2004 compared to the same
period in 2005.
- For the quarter ended December 31, 2005, WesBanco repurchased a total
of 229,291 common shares at an average price of $30.62 per share. For
the year ended December 31, 2005, WesBanco repurchased a total of
1,378,482 shares at an average price of $29.01 per share. WesBanco has
138,161 shares remaining for repurchase under the current repurchase
plan approved in March 2005.
- The sale of WesBanco Bank's four branches in Ritchie County, WV to
Union Bank, Inc. of Middlebourne, WV has received the necessary
regulatory approvals, and is on track to close on or about March 17,
2006. WesBanco expects to record an approximate $2.4 million net pre-
tax gain upon sale of the branches in the first quarter of 2006, which
hold approximately $37.7 million in total deposits and $20.8 million in
related loans. Additionally, on December 16, 2005, WesBanco opened a
new branch office in Bexley, Ohio, a suburb of the Columbus
metropolitan area.
WesBanco is a multi-state bank holding company with total assets of approximately $4.4 billion, currently operating through 85 banking offices, two loan production offices, and 125 ATMs in West Virginia, Ohio, and Pennsylvania. WesBanco's banking subsidiary is WesBanco Bank, Inc., headquartered in Wheeling, West Virginia. In addition, WesBanco operates an insurance brokerage 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 WesBanco's 2004 Annual Report on Form 10-K, as well as the Form 10-Q for the prior quarter ended September 30, 2005, filed with the Securities and Exchange Commission ("SEC"), which are available at the SEC's website http://www.sec.gov/ or at WesBanco's website, http://www.wesbanco.com/. Investors are cautioned that forward-looking statements, which are not historical fact, involve risks and uncertainties, including those detailed in WesBanco's 2004 Annual Report on Form 10-K filed with the SEC under the section "Risk Factors." 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 effects 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, Federal Deposit Insurance Corporation, the SEC, the National Association of Securities Dealers and other regulatory bodies; 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.
WESBANCO, INC.
Consolidated Selected Financial Highlights
(unaudited, dollars in thousands, except per share amounts)
For the Three Months Ended
December 31,
Statement of income 2005 2004 % Change
Interest income $57,096 $46,727 22.19%
Interest expense 24,742 17,465 41.67%
Net interest income 32,354 29,262 10.57%
Provision for loan losses 2,142 2,269 (5.60%)
Net interest income after
provision for loan losses 30,212 26,993 11.93%
Non-interest income
Trust fees 3,538 3,334 6.12%
Service charges on deposit accounts 3,515 2,600 35.19%
Net securities gains 59 733 (91.95%)
Other income 2,710 2,750 (1.45%)
Total non-interest income 9,822 9,417 4.30%
Non-interest expense
Salaries and employee benefits 13,446 13,044 3.08%
Net occupancy 1,776 1,496 18.72%
Equipment 1,969 2,177 (9.55%)
Core deposit intangibles 654 414 57.97%
Merger-related expenses (1) - 180 (100.00%)
Restructuring expenses (2) - - 0.00%
Other operating 8,790 7,807 12.59%
Total non-interest expense 26,635 25,118 6.04%
Income before provision for
income taxes 13,399 11,292 18.66%
Provision for income taxes 2,850 2,260 26.11%
Net income $10,549 $9,032 16.80%
Taxable equivalent net interest income $34,786 $31,652 9.90%
Per common share data
Net income per common share - basic $0.48 $0.44 9.09%
Net income per common share - diluted $0.48 $0.43 11.63%
Dividends declared $0.26 $0.25 4.00%
Book value (period end) - - -
Tangible book value (period end) - - -
Average shares outstanding - basic 22,070,906 20,795,545 6.13%
Average shares outstanding - diluted 22,127,684 20,871,212 6.02%
Period end shares outstanding - - -
Selected ratios
Return on average assets 0.95% 0.92% 3.30%
Return on average equity 10.09% 9.79% 3.09%
Yield on earning assets (3) 5.88% 5.45% 7.89%
Cost of interest bearing liabilities 2.74% 2.19% 25.11%
Net interest spread (3) 3.14% 3.26% (3.68%)
Net interest margin (3) 3.45% 3.52% (1.99%)
Efficiency (3) 59.71% 61.16% (2.37%)
Average loans to average deposits 96.92% 89.80% 7.93%
Annualized net loan charge-
offs/average loans 0.50% 0.40% 24.00%
Effective income tax rate 21.27% 20.01% 6.30%
(1) merger-related expenses are primarily related to the acquisitions of
Winton Financial Corporation and Western Ohio Financial Corporation.
(2) restructuring costs associated with a reduction of WesBanco's
workforce through layoffs.
(3) the yield on earning assets, net interest margin, net interest spread
and efficiency ratios are presented on a fully taxable-equivalent
(FTE) and annualized basis. The FTE basis adjusts for the tax benefit
of income on certain tax-exempt loans and investments. WesBanco
believes this measure to be the preferred industry measurement of net
interest income and provides a relevant comparison between taxable and
non-taxable amounts.
WESBANCO, INC.
Consolidated Selected Financial Highlights
(unaudited, dollars in thousands, except per share amounts)
For the Year Ended
December 31,
Statement of income 2005 2004 % Change
Interest income $224,745 $169,436 32.64%
Interest expense 92,434 60,212 53.51%
Net interest income 132,311 109,224 21.14%
Provision for loan losses 8,045 7,735 4.01%
Net interest income after
provision for loan losses 124,266 101,489 22.44%
Non-interest income
Trust fees 14,305 13,056 9.57%
Service charges on deposit accounts 11,534 9,550 20.77%
Net securities gains 2,021 2,768 (26.99%)
Other income 11,273 10,167 10.88%
Total non-interest income 39,133 35,541 10.11%
Non-interest expense
Salaries and employee benefits 56,290 47,393 18.77%
Net occupancy 7,167 5,763 24.36%
Equipment 8,381 7,728 8.45%
Core deposit intangibles 2,667 1,371 94.53%
Merger-related expenses (1) 578 397 45.59%
Restructuring expenses (2) 952 - 100.00%
Other operating 32,885 27,220 20.81%
Total non-interest expense 108,920 89,872 21.19%
Income before provision for
income taxes 54,479 47,158 15.52%
Provision for income taxes 11,722 8,976 30.59%
Net income $42,757 $38,182 11.98%
Taxable equivalent net interest income $142,139 $118,653 19.79%
Per common share data
Net income per common share - basic $1.90 $1.91 (0.52%)
Net income per common share - diluted $1.90 $1.90 0.00%
Dividends declared $1.04 $1.00 4.00%
Book value (period end) $18.91 $17.77 6.43%
Tangible book value (period end) $12.19 $13.74 (11.30%)
Average shares outstanding - basic 22,474,645 20,028,248 12.21%
Average shares outstanding - diluted 22,528,262 20,083,718 12.17%
Period end shares outstanding 21,955,359 20,837,469 5.36%
Selected ratios
Return on average assets 0.95% 1.07% (10.94%)
Return on average equity 10.13% 11.37% (10.89%)
Yield on earning assets (3) 5.74% 5.43% 5.71%
Cost of interest bearing liabilities 2.52% 2.08% 21.15%
Net interest spread (3) 3.22% 3.35% (3.88%)
Net interest margin (3) 3.48% 3.60% (3.33%)
Efficiency (3) 60.09% 58.29% 3.09%
Average loans to average deposits 96.38% 84.02% 14.71%
Annualized net loan charge-
offs/average loans 0.29% 0.31% (6.00%)
Effective income tax rate 21.52% 19.03% 13.08%
(1) merger-related expenses are primarily related to the acquisitions of
Winton Financial Corporation and Western Ohio Financial Corporation.
(2) restructuring costs associated with a reduction of WesBanco's
workforce through layoffs.
(3) the yield on earning assets, net interest margin, net interest spread
and efficiency ratios are presented on a fully taxable-equivalent
(FTE) and annualized basis. The FTE basis adjusts for the tax benefit
of income on certain tax-exempt loans and investments. WesBanco
believes this measure to be the preferred industry measurement of net
interest income and provides a relevant comparison between taxable and
non-taxable amounts.
WESBANCO, INC.
Consolidated Selected Financial Highlights
(unaudited, dollars in thousands) % Change
Dec. 31,
2004 to
Balance sheet (period end) December 31, December 31, Dec. 31,
Assets 2005 2004 2005
Cash and due from banks $108,176 $93,611 15.56 %
Due from banks - Interest bearing 2,432 3,446 (29.43)
Federal funds sold - - -
Securities 1,036,065 1,172,182 (11.61)
Loans:
Loans held for sale 28,803 3,169 808.90
Commercial and commercial real
estate 1,535,503 1,308,044 17.39
Residential real estate 929,823 771,337 20.55
Consumer and home equity 446,751 405,985 10.04
Total loans 2,940,880 2,488,535 18.18
Allowance for loan losses (30,957) (29,486) 4.99
Net loans 2,909,923 2,459,049 18.34
Premises and equipment, net 64,707 56,670 14.18
Goodwill 137,258 73,760 86.09
Core deposit intangible, net 10,400 10,162 2.34
Other assets 153,154 142,519 7.46
Total Assets $4,422,115 $4,011,399 10.24 %
Liabilities and Shareholders' Equity
Non-interest bearing demand deposits $392,116 $355,364 10.34 %
Interest bearing demand deposits 325,582 312,080 4.33
Money market accounts 444,071 587,523 (24.42)
Savings deposits 462,601 362,581 27.59
Certificates of deposit 1,403,954 1,108,386 26.67
Total deposits 3,028,324 2,725,934 11.09
Federal Home Loan Bank borrowings 612,693 599,411 2.22
Other borrowings 244,301 200,513 21.84
Junior subordinated debt 87,638 72,174 21.43
Other liabilities 33,929 43,186 (21.44)
Shareholders' equity 415,230 370,181 12.17
Total Liabilities and Shareholders'
Equity $4,422,115 $4,011,399 10.24 %
WESBANCO, INC.
Consolidated Selected Financial Highlights
(unaudited, dollars in thousands) % Change
Balance sheet (period end) September 30,
2005 to
September 30, December 31,
Assets 2005 2005
Cash and due from banks $79,638 35.83 %
Due from banks - Interest bearing 1,622 49.94
Federal funds sold - -
Securities 1,079,910 (4.06)
Loans:
Loans held for sale 5,563 417.76
Commercial and commercial real estate 1,521,570 0.92
Residential real estate 944,718 (1.58)
Consumer and home equity 463,915 (3.70)
Total loans 2,935,766 0.17
Allowance for loan losses (32,497) (4.74)
Net loans 2,903,269 0.23
Premises and equipment, net 63,365 2.12
Goodwill 136,697 0.41
Core deposit intangible, net 11,054 (5.92)
Other assets 146,880 4.27
Total Assets $4,422,435 (0.01)%
Liabilities and Shareholders' Equity
Non-interest bearing demand deposits $356,705 9.93 %
Interest bearing demand deposits 330,203 (1.40)
Money market accounts 481,999 (7.87)
Savings deposits 473,351 (2.27)
Certificates of deposit 1,397,045 0.49
Total deposits 3,039,303 (0.36)
Federal Home Loan Bank borrowings 636,634 (3.76)
Other borrowings 207,665 17.64
Junior subordinated debt 87,638 -
Other liabilities 35,020 (3.12)
Shareholders' equity 416,175 (0.23)
Total Liabilities and Shareholders' Equity $4,422,435 (0.01)%
Average balance sheet and
net interest margin analysis Three months ended December 31,
2005 2004
Average Average Average Average
Assets Volume Rate Volume Rate
Due from banks - interest bearing $2,941 2.97% $4,824 0.99%
Loans, net of unearned income 2,945,172 6.18% 2,449,108 5.73%
Securities:
Taxable 649,485 4.05% 731,807 3.79%
Tax-exempt 417,460 6.66% 387,493 7.04%
Total securities 1,066,945 5.07% 1,119,300 4.92%
Federal funds sold 332 4.78% 15,664 1.92%
Total earning assets 4,015,390 5.88% 3,588,896 5.45%
Other assets 388,546 334,313
Total Assets $4,403,936 $3,923,209
Liabilities and Shareholders' Equity
Interest bearing demand deposits $328,829 0.66% $316,843 0.37%
Money market accounts 461,912 2.02% 606,816 1.72%
Savings deposits 466,185 0.97% 360,260 0.32%
Certificates of deposit 1,403,569 3.37% 1,094,541 2.87%
Total interest bearing deposits 2,660,495 2.38% 2,378,460 1.86%
Federal Home Loan Bank borrowings 618,781 3.51% 546,603 3.34%
Other borrowings 210,690 3.68% 175,194 1.73%
Junior subordinated debt 87,638 6.16% 72,174 5.59%
Total interest bearing
liabilities 3,577,604 2.74% 3,172,431 2.19%
Non-interest bearing demand deposits 378,342 348,861
Other liabilities 33,300 34,938
Shareholders' equity 414,690 366,979
Total Liabilities and
Shareholders' Equity $4,403,936 $3,923,209
Taxable equivalent net interest
spread 3.14% 3.26%
Taxable equivalent net interest
margin 3.45% 3.52%
Average balance sheet and
net interest margin analysis For the year ended December 31,
2005 2004
Average Average Average Average
Assets Volume Rate Volume Rate
Due from banks - interest bearing $4,165 1.34% $3,227 0.96%
Loans, net of unearned income 2,950,987 6.04% 2,134,181 5.78%
Securities:
Taxable 711,635 3.96% 767,750 3.71%
Tax-exempt 418,904 6.70% 379,175 7.10%
Total securities 1,130,539 4.97% 1,146,925 4.83%
Federal funds sold 1,377 2.98% 7,946 1.43%
Total earning assets 4,087,068 5.74% 3,292,279 5.43%
Other assets 399,992 292,175
Total Assets $4,487,060 $3,584,454
Liabilities and Shareholders' Equity
Interest bearing demand deposits $329,498 0.52% $299,746 0.30%
Money market accounts 523,285 1.91% 575,594 1.69%
Savings deposits 457,613 0.75% 355,678 0.32%
Certificates of deposit 1,381,090 3.12% 981,325 2.83%
Total interest bearing deposits 2,691,486 2.16% 2,212,343 1.79%
Federal Home Loan Bank borrowings 670,157 3.41% 445,622 3.41%
Other borrowings 214,710 2.94% 176,783 1.40%
Junior subordinated debt 84,418 5.99% 53,242 5.52%
Total interest bearing
liabilities 3,660,771 2.52% 2,887,990 2.08%
Non-interest bearing demand deposits 370,448 327,754
Other liabilities 33,824 32,919
Shareholders' equity 422,017 335,791
Total Liabilities and
Shareholders' Equity $4,487,060 $3,584,454
Taxable equivalent net interest
spread 3.22% 3.35%
Taxable equivalent net interest
margin 3.48% 3.60%
WESBANCO, INC.
Consolidated Selected Financial Highlights
(unaudited, dollars in thousands, except per share amounts)
Quarter Ended
Dec. 31, Sept. 30, June 30,
Statement of income 2005 2005 2005
Interest income $57,096 $56,231 $56,534
Interest expense 24,742 23,643 22,666
Net interest income 32,354 32,588 33,868
Provision for loan losses 2,142 2,141 1,919
Net interest income after
provision for loan losses 30,212 30,447 31,949
Non-interest income
Trust fees 3,538 3,541 3,512
Service charges on deposit accounts 3,515 2,834 2,723
Net securities gains 59 141 1,068
Other income 2,710 3,324 2,637
Total non-interest income 9,822 9,840 9,940
Non-interest expense
Salaries and employee benefits 13,446 14,420 14,528
Net occupancy 1,776 1,844 1,751
Equipment 1,969 2,018 2,190
Core deposit intangibles 654 665 685
Merger-related expenses (1) - 15 70
Restructuring expenses (2) - 952 -
Other operating 8,790 7,749 8,269
Total non-interest expense 26,635 27,663 27,493
Income before income taxes 13,399 12,624 14,396
Provision for income taxes 2,850 2,754 3,138
Net income $10,549 $9,870 $11,258
Taxable equivalent net interest income $34,786 $35,111 $36,448
Per common share data
Net income per common share - basic $0.48 $0.44 $0.50
Net income per common share - diluted $0.48 $0.44 $0.50
Dividends declared $0.26 $0.26 $0.26
Book value (period end) $18.91 $18.74 $18.82
Tangible book value (period end) $12.19 $12.08 $12.15
Average shares outstanding - basic 22,070,906 22,260,541 22,587,213
Average shares outstanding - diluted 22,127,684 22,320,674 22,643,463
Period end shares outstanding 21,955,359 22,156,096 22,321,525
Full time equivalent employees 1,200 1,254 1,311
Selected ratios
Return on average assets 0.95% 0.88% 0.99%
Return on average equity 10.09% 9.35% 10.66%
Yield on earning assets (3) 5.88% 5.78% 5.71%
Cost of interest bearing liabilities 2.74% 2.59% 2.44%
Net interest spread (3) 3.14% 3.19% 3.27%
Net interest margin (3) 3.45% 3.46% 3.52%
Efficiency (3) 59.71% 61.54% 59.27%
Average loans to average deposits 96.92% 95.80% 96.36%
Trust Assets, market value at period
end $2,599,463 $2,598,993 $2,557,916
(1) merger-related expenses are primarily related to the acquisitions of
Winton Financial Corporation and Western Ohio Financial Corporation.
(2) restructuring costs associated with a reduction of WesBanco's
workforce through layoffs.
(3) the yield on earning assets, net interest margin, net interest
spread and efficiency ratios are presented on a fully
taxable-equivalent (FTE) and annualized basis. The FTE basis adjusts
for the tax benefit of income on certain tax-exempt loans and
investments. WesBanco believes this measure to be the preferred
industry measurement of net interest income and provides a relevant
comparison between taxable and non-taxable amounts.
WESBANCO, INC.
Consolidated Selected Financial Highlights
(unaudited, dollars in thousands, except per share amounts)
Quarter Ended
March 31, Dec. 31,
Statement of income 2005 2004
Interest income $54,884 $46,727
Interest expense 21,383 17,465
Net interest income 33,501 29,262
Provision for loan losses 1,843 2,269
Net interest income after
provision for loan losses 31,658 26,993
Non-interest income
Trust fees 3,714 3,334
Service charges on deposit accounts 2,462 2,600
Net securities gains 753 733
Other income 2,602 2,750
Total non-interest income 9,531 9,417
Non-interest expense
Salaries and employee benefits 13,896 13,044
Net occupancy 1,796 1,496
Equipment 2,204 2,177
Core deposit intangibles 663 414
Merger-related expenses (1) 493 180
Restructuring expenses (2) - -
Other operating 8,077 7,807
Total non-interest expense 27,129 25,118
Income before income taxes 14,060 11,292
Provision for income taxes 2,980 2,260
Net income $11,080 $9,032
Taxable equivalent net interest income $36,024 $31,652
Per common share data
Net income per common share - basic $0.48 $0.44
Net income per common share - diluted $0.48 $0.43
Dividends declared $0.26 $0.25
Book value (period end) $18.62 $17.77
Tangible book value (period end) $12.08 $13.74
Average shares outstanding - basic 22,992,398 20,795,545
Average shares outstanding - diluted 23,043,874 20,871,212
Period end shares outstanding 22,769,417 20,837,469
Full time equivalent employees 1,358 1,209
Selected ratios
Return on average assets 0.99% 0.92%
Return on average equity 10.42% 9.79%
Yield on earning assets (3) 5.60% 5.45%
Cost of interest bearing liabilities 2.33% 2.19%
Net interest spread (3) 3.27% 3.26%
Net interest margin (3) 3.51% 3.52%
Efficiency (3) 59.55% 61.16%
Average loans to average deposits 96.44% 89.80%
Trust Assets, market value at period end $2,589,631 $2,664,795
(1) merger-related expenses are primarily related to the acquisitions of
Winton Financial Corporation and Western Ohio Financial Corporation.
(2) restructuring costs associated with a reduction of WesBanco's
workforce through layoffs.
(3) the yield on earning assets, net interest margin, net interest
spread and efficiency ratios are presented on a fully
taxable-equivalent (FTE) and annualized basis. The FTE basis adjusts
for the tax benefit of income on certain tax-exempt loans and
investments. WesBanco believes this measure to be the preferred
industry measurement of net interest income and provides a relevant
comparison between taxable and non-taxable amounts.
WESBANCO, INC.
Consolidated Selected Financial Highlights
(unaudited, dollars in thousands)
Quarter Ended
Dec. 31, Sept. 30, June 30, March 31, Dec. 31,
Asset quality data 2005 2005 2005 2005 2004
Non-performing assets:
Non-accrual loans $9,920 $9,812 $10,941 $8,476 $8,195
Renegotiated loans - - - - -
Total non-performing
loans 9,920 9,812 10,941 8,476 8,195
Other real estate and
repossessed assets 1,868 1,929 2,525 2,497 2,059
Total non-performing
loans and assets $11,788 $11,741 $13,466 $10,973 $10,254
Loans past due 90 days
or more $10,054 $8,411 $7,585 $8,032 $7,584
Non-performing
assets/total assets 0.27 % 0.27 % 0.30 % 0.24 % 0.26 %
Non-performing
assets/total loans,
other real estate and
repossessed assets 0.40 % 0.40 % 0.46 % 0.37 % 0.41 %
Non-performing
loans/total loans 0.34 % 0.33 % 0.37 % 0.29 % 0.33 %
Non-performing loans and
loans past due 90 days
or more/total loans 0.68 % 0.62 % 0.63 % 0.56 % 0.63 %
Allowance for loan losses
Allowance for loan
losses $30,957 $32,497 $32,348 $32,225 $29,486
Provision for loan
losses 2,142 2,141 1,919 1,843 2,269
Net loan charge-offs 3,682 1,993 1,795 1,051 2,478
Annualized net loan
charge-offs/average
loans 0.50 % 0.27 % 0.24 % 0.14 % 0.40 %
Allowance for loan
losses/total loans 1.05 % 1.11 % 1.10 % 1.09 % 1.18 %
Allowance for loan
losses/non-performing
loans 3.12 x 3.31 x 2.96 x 3.80 x 3.60 x
Allowance for loan
losses/non-performing
loans and past due
90 days or more 1.55 x 1.78 x 1.75 x 1.95 x 1.87 x
Capital ratios
Tier I leverage capital 8.46 % 8.38 % 8.17 % 8.34 % 9.34 %
Tier I risk-based
capital 11.94 % 11.92 % 11.93 % 12.03 % 13.43 %
Total risk-based
capital 12.97 % 13.01 % 13.01 % 13.09 % 14.54 %
Shareholders' equity to
assets 9.42 % 9.43 % 9.34 % 9.30 % 9.23 %
Tangible equity to
tangible assets (1) 6.28 % 6.31 % 6.24 % 6.52 % 7.36 %
(1) tangible equity is defined as shareholders' equity less goodwill and
other intangible assets, and tangible assets are defined as total
assets less goodwill and other intangible assets. The calculation is
based on quarterly averages.
WESBANCO, INC.
Reconciliation Table - Non-GAAP Financial Information
(unaudited, dollars in thousands, except per share amounts)
Note: This press release contains financial information other than that
provided by accounting principles generally accepted in the United States
of America ("GAAP"). The Company's management believes these Non-GAAP
measurements, which exclude the effects of merger-related and
restructuring expenses, are essential to a proper understanding of the
operating results of the Company's core business largely because they
allow investors to see clearly the performance of the Company without the
restructuring charges included in certain key financial ratios. These Non-
GAAP measurements are not a substitute for operating results determined in
accordance with GAAP nor do they necessarily conform to Non-GAAP
performance measures that may be presented by other companies. These Non-
GAAP measures should not be compared to Non-GAAP performance measures of
other companies.
For the Three For the
Months Ended Year Ended
December 31, December 31,
2005 2004 2005 2004
Net income $10,549 $9,032 $42,757 $38,182
Add back: merger-related expenses, net
of tax (1) - 108 347 238
Add back: restructuring expenses, net
of tax (1) - - 571 -
Core operating earnings $10,549 $9,140 $43,675 $38,420
Net income per common share - basic $0.48 $0.44 $1.90 $1.91
Effects of merger-related expenses, net
of tax (1) - 0.01 0.02 0.01
Effects of restructuring expenses, net
of tax (1) - - 0.03 -
Core operating earnings per common
share - basic $0.48 $0.45 $1.95 $1.92
Net income per common share - diluted $0.48 $0.43 $1.90 $1.90
Effects of merger-related expenses, net
of tax (1) - 0.01 0.02 0.01
Effects of restructuring expenses, net
of tax (1) - - 0.03 -
Core operating earnings per common
share - diluted $0.48 $0.44 $1.95 $1.91
Selected ratios
Return on average assets 0.95% 0.92% 0.95% 1.07%
Effects of merger-related expenses, net
of tax (1) 0.00% 0.01% 0.01% 0.01%
Effects of restructuring expenses, net
of tax (1) 0.00% 0.00% 0.01% 0.00%
Core return on average assets 0.95% 0.93% 0.97% 1.08%
Return on average equity 10.09% 9.79% 10.13% 11.37%
Effects of merger-related expenses, net
of tax (1) 0.00% 0.12% 0.08% 0.07%
Effects of restructuring expenses, net
of tax (1) 0.00% 0.00% 0.14% 0.00%
Core return on average equity 10.09% 9.91% 10.35% 11.44%
Efficiency ratio (2) 59.71% 61.16% 60.09% 58.29%
Effects of merger-related expenses 0.00% (0.44%) (0.32%) (0.26%)
Effects of restructuring expenses 0.00% 0.00% (0.53%) 0.00%
Core efficiency ratio 59.71% 60.72% 59.24% 58.03%
(1) the related income tax expense is calculated using a combined Federal
and State income tax rate of 40%.
(2) the yield on earning assets, net interest margin, net interest spread
and efficiency ratios are presented on a fully taxable-equivalent
(FTE) and annualized basis. The FTE basis adjusts for the tax benefit
of income on certain tax-exempt loans and investments. WesBanco
believes this measure to be the preferred industry measurement of net
interest income and provides a relevant comparison between taxable and
non-taxable amounts.
First Call Analyst:
FCMN Contact:
