WHEELING, W.Va., April 22 /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 first quarter ended March 31, 2009.
Net income, after payment of TARP dividends, for the three months ended March 31, 2009 was $4.4 million, while diluted earnings per common share were $0.17, as compared to $9.5 million or $0.36 per common share for the first quarter of 2008. Earnings per common share for the 2009 quarter included the full effect of the TARP preferred stock dividend of $1.1 million. First quarter results were impacted primarily by a higher provision for loan losses due to an increased level of nonperforming loans, in addition to the preferred stock payment, higher FDIC insurance costs, higher health care and merger related expenses.
On March 27, 2009 WesBanco completed the purchase of all five of AmTrust Bank's Columbus, Ohio branches. As part of the agreement, WesBanco assumed all of the deposit liabilities approximating $600 million, paid a deposit premium of approximately $20.4 million and purchased, or assumed the leases of, the related fixed assets of the branches. WesBanco did not acquire loans as part of the transaction, and will operate the acquired branches under the WesBanco Bank name.
Mr. Limbert commented, "the challenging economic environment has affected many aspects of banking, but a reduction in the loan loss provision as compared to the fourth quarter while continuing to build reserves, and a reduction in net charge-offs, have helped us to limit the downside by virtue of our overall lending standards and the diversification of our lending portfolio. Meanwhile, we are focused on maintaining the quality of new loans, while still helping our customers to meet their needs in the communities we operate in throughout West Virginia, Ohio and Western Pennsylvania. We were also encouraged by our improving expense control results in the first quarter, which should assist the Company when the economy begins to improve." Mr. Limbert further remarked, "the AmTrust branch purchase will also provide opportunities by increasing WesBanco's core funding while maintaining a strong capital position, with a top ten ranking in deposit share in the Columbus market. The additional five branches join the eight other Columbus area branches already owned by the bank, and greatly enhance our ability to serve customers in the market."
Highlights for the first quarter of 2009 include the following: -- Net interest income for the first quarter decreased 1.6% due to a 5 basis point decrease in the net interest margin to 3.47%, and a small decrease in average earning assets. Lower interest rates reduced the cost of funds by 96 basis points in the 2009 quarter, but the yield on earning assets declined at a slightly faster pace, primarily due to the repricing of loans and taxable securities and the reversal of interest income related to the increase in nonperforming loans. Lower interest rates over the past 18 months have generally reduced interest income at a slower pace than the effect on interest bearing liabilities, but as the lower rates continue and deposit rate floors begin to impact WesBanco, repricing of assets is having a larger impact. The margin benefited in the 2009 quarter from a 6.3% increase in average non-interest bearing deposit balances, as compared to the first quarter of 2008, the result of prior marketing campaigns focused on checking account products. The slight decline in total earning assets is primarily due to continued strategic decreases in residential real estate loans through the sale of most originations, while the increase in investments and other short term funds is related to the investment of the proceeds from the branch acquisition towards the end of the quarter. In addition, the increase in deposits from the branch acquisition reduced the loan to deposit ratio from 103% at December 31, 2008 to 85% at March 31, 2009. -- Non-interest income decreased $2.7 million or 17.6% from the first quarter of 2008. The major factors responsible for the decline were lower trust fee income of $0.8 million as a result of decreasing managed asset values and estate fees, a $0.4 million decrease in service fees on deposits due to lower overdraft fees, and a noncash impairment charge of $0.4 million recognized on mortgage servicing rights, partially offset by an increase in overall mortgage banking income due to increased mortgage refinancing fees from the lower interest rate environment. Securities brokerage and insurance fees were also lower by $0.2 million from the prior year, securities gains declined $0.4 million and other banking fees declined by $0.2 million. -- The provision for credit losses in the first quarter of 2009 decreased $5.5 million from the fourth quarter of 2008, but increased $4.1 million over the 2008 first quarter, to $9.6 million. The decrease in the provision from the fourth quarter is primarily due to a 41.0% decrease in net charge offs, partially offset by a $24.2 million increase in non-accrual loans and a $10.0 million increase in renegotiated loans and their resulting impact on the estimation of the loan loss reserve. The increase in non-accrual loans is the result of approximately $17.6 million of commercial real estate loans and approximately $7.2 million of residential real estate loans being placed on non-accrual during the first quarter. The increase in non-accrual commercial real estate loans consists of loans for several different types of properties primarily in the Ohio metropolitan markets due to diminished repayment capacity of the borrowers. The increase in non-accrual residential real estate loans is the result of placing a number of such loans that are 90 days or more past due on non-accrual even though the current value of their collateral is generally sufficient to secure the loans. Non-accrual loans were comprised of 70.7% from commercial real estate, 12.7% from commercial and industrial and the remainder from residential real estate and other consumer lines. The increase in renegotiated loans is primarily attributable to a $7.3 million commercial real estate loan secured by a hotel and modifications of terms on residential real estate loans as an alternative to foreclosure. The allowance for loan losses provided coverage of 77% of non performing loans at March 31, 2009, however the $54.2 million allowance represented 238% of trailing twelve months' net charge-offs and 266% of annualized first quarter net charge-offs. The provision exceeded net charge offs by $4.4 million in the first quarter of 2009 representing 187% of net charge offs, while the allowance for loan losses as a percent of total loans increased from 1.38% as of December 31, 2008 to 1.52% at March 31, 2009. This additional provision is a reflection of deteriorating economic conditions adversely impacting our market areas which have caused increases in non-performing assets and loan delinquencies. Economic conditions have generally worsened since the first quarter of 2008 and were exacerbated more recently by a sharp increase in unemployment in nearly all of WesBanco's markets, record declines in the equity markets, and declining real estate values, particularly in our Ohio metropolitan markets. For the first quarter of 2009, net charge offs were 0.57% of average loans, as compared to 0.96% for the fourth quarter of 2008. Non-performing loans as a percent of total loans were 1.97% at March 31, 2009 as compared to 1.01% at December 31, 2008; however, loans past due 90 days and accruing interest or more decreased to $5.7 million or 0.16% of total loans as compared to $18.8 million or 0.52% at December 31, 2008. -- WesBanco has improved and effectively controlled costs since the late 2007 Oak Hill acquisition, and as a result, total non-interest expense in the first quarter decreased 5.0% or $1.8 million from the first quarter of 2008. The combined decreases in salaries and benefits, net occupancy, marketing, and merger and restructuring expenses represented a $2.1 million cost reduction from the 2008 first quarter which was partially offset by a $0.6 million increase in other expenses, primarily due to the increased cost associated with FDIC insurance, which was up $1.1 million in the first quarter. The 2008 expenses included the cost of operating two separate bank charters and back offices through April, 2008, and heavier marketing spending to establish name identity in the former Oak Hill banking markets. Excluding the former AmTrust employees who joined us on March 27, 2009, full time equivalent employees decreased 7.5% from 1,566 at March 31, 2008 to 1,448 at March 31, 2009. -- Total investments increased $398.4 million or 42.6% from December 31, 2008 due primarily to the AmTrust Acquisition. The acquired funds are being invested in agency, mortgage-backed agency securities, and money market funds which invest at least 80% in federal government obligations. WesBanco's portfolio is primarily comprised of agency, mortgage-backed agency securities and rated, insured state and municipal securities. Net unrealized gains on the available-for-sale portfolio increased from $17.9 million at December 31, 2008 to $22.9 million at March 31, 2009. -- Total portfolio loans at March 31, 2009 decreased 0.9% compared to December 31, 2008, as WesBanco continues its focus on maintaining asset yield and credit quality, and as a result, certain consumer indirect loans are decreasing while the Bank continues its strategy of reducing existing fixed rate residential mortgage loans and selling into the secondary market most residential mortgage loan originations. However, commercial loans increased 2.2% over the last year, primarily from commercial real estate loans from our newer Ohio-based markets. -- Deposits at March 31, 2009 increased $701.8 million or 20.0% compared to December 31, 2008 primarily due to the AmTrust branch acquisition which provided approximately $600 million of additional deposits. The increase was primarily in certificates of deposit and money market accounts. Money market accounts and certificates of deposit acquired through the branch acquisition were $126.1 million and $381.7 million respectively. In addition to the branch acquisition, deposits increased in nearly all categories totaling approximately $100 million as lower market interest rates improved opportunities to acquire reasonably priced deposits through our branch network and through the national Certificate of Deposit Account Registry Services (CDARS(R)) program. -- At March 31, 2009, FHLB borrowings decreased 1.4% from December 31, 2008 and increased $125.6 million or 27.1% from March 31, 2008 to $588.5 million. The average cost of FHLB borrowings in the first quarter of 2009 was 3.85%, as compared to 4.07% for the first quarter of 2008. Throughout 2008 and 2009, the Bank continued to manage deposit rates, particularly in markets where larger banks were aggressively pursuing higher cost CD's and MMDA's, and used more reasonably priced wholesale term borrowings as part of a strategy to improve net interest margin in 2008. The shift to a more liquid balance sheet with the recent branch deposit acquisition should provide opportunities to reduce short-term borrowings as they mature. -- The provision for income taxes decreased $1.5 million in 2009 due to a decrease in pre-tax income and a decrease in the effective tax rate. For 2009 the effective tax rate decreased to 12.1% as compared to 19.2% in the first quarter of 2008, due primarily to a higher percentage of tax-exempt income to total income. -- WesBanco continues to post strong regulatory capital ratios of 9.71% tier I leverage capital ratio, 12.18% tier I risk-based capital ratio, and 13.44% total risk-based capital ratio, all of which are considerably above the "well capitalized" standards promulgated by bank regulators. Total tangible equity to tangible assets was 6.68% at March 31, 2009 as compared to 7.90% at December 31, 2008. This decrease was primarily due to the acquisition of AmTrust.
WesBanco is a multi-state bank holding company with total assets of approximately $5.9 billion, operating through 114 branch locations and 143 ATMs in West Virginia, Ohio, and Pennsylvania. WesBanco's banking subsidiary is WesBanco Bank, Inc., headquartered in Wheeling, West Virginia. WesBanco also operates an insurance brokerage company, WesBanco Insurance Services, Inc., and a full service broker/dealer, WesBanco Securities, Inc.
Forward-looking Statements
Forward-looking statements in this report 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 report should be read in conjunction with WesBanco's Form 10-K for the year ended December 31, 2008 filed with the Securities and Exchange Commission ("SEC"), which is 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 most recent Annual report on Form 10-K filed with the SEC under Part I, Item 1A. 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 WesBanco 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 Financial Institution Regulatory Authority and other regulatory bodies; potential legislative and federal and state regulatory actions and reform; adverse decisions of federal and state courts; fraud, scams and schemes of third parties; internet hacking; competitive conditions in the financial services industry; rapidly changing technology affecting financial services, marketability of debt instruments and corresponding impact on fair value adjustments; 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 March 31, ----------------------------- Statement of income 2009 2008 % Change ------------------- ---- ---- -------- Interest income $63,201 $74,781 (15.49%) Interest expense 25,074 36,037 (30.42%) ------ ------ ------ Net interest income 38,127 38,744 (1.59%) Provision for credit losses 9,550 5,425 76.04% ----- ----- ----- Net interest income after provision for credit losses 28,577 33,319 (14.23%) ------ ------ ------ Non-interest income Trust fees 3,353 4,124 (18.70%) Service charges on deposits 5,217 5,603 (6.89%) Bank-owned life insurance 892 860 3.72% Net securities gains/ (losses) 142 506 (71.94%) Net gains on sales of mortgage loans 488 56 771.43% Other income 2,344 3,946 (40.60%) ----- ----- ------ Total non-interest income 12,436 15,095 (17.62%) Non-interest expense Salaries and employee benefits 17,874 18,566 (3.73%) Net occupancy 2,744 3,088 (11.14%) Equipment 2,542 2,584 (1.63%) Amortization of intangible assets 698 1,014 (31.16%) Marketing expense 756 1,169 (35.33%) Merger and restructuring expenses 429 1,049 (59.10%) Other operating expenses 9,769 9,190 6.30% ----- ----- ---- Total non-interest expense 34,812 36,660 (5.04%) ------ ------ ----- Income before provision for income taxes 6,201 11,754 (47.24%) Provision for income taxes 752 2,251 (66.59%) --- ----- ------ Net income $5,449 $9,503 (42.66%) ====== ====== ====== Preferred dividends 1,055 - 100.00% ----- --- ------ Net Income available to Common Shareholders $4,394 $9,503 (53.76%) ====== ====== ====== Taxable equivalent net interest income $40,019 $40,790 (1.89%) Per common share data --------------------- Net income available per common share - basic $0.17 $0.36 (52.78%) Net income available per common share - diluted $0.17 $0.36 (52.78%) Dividends declared $0.28 $0.28 0.00% Book value (period end) $24.85 $22.15 12.20% Tangible book value (period end) $14.00 $11.81 18.55% Tangible common book value (period end) $11.27 $11.81 (4.54%) Average common shares outstanding - basic 26,561,490 26,547,073 0.05% Average common shares outstanding - diluted 26,563,945 26,556,104 0.03% Period end common shares outstanding 26,567,653 26,547,073 0.08% Period end preferred shares outstanding 75,000 - 100.00% Selected ratios --------------- Return on average assets 0.34% 0.72% (52.92%) Return on average equity 2.68% 6.55% (59.04%) Return on average common equity 3.01% 6.55% (54.03%) Return on average tangible common equity 5.51% 12.47% (55.77%) Yield on earning assets (1) 5.65% 6.64% (14.91%) Cost of interest bearing liabilities 2.52% 3.48% (27.59%) Net interest spread (1) 3.13% 3.16% (0.95%) Net interest margin (1) 3.47% 3.52% (1.42%) Efficiency (1) 66.37% 65.60% 1.17% Average loans to average deposits 99.94% 96.74% 3.31% Annualized net loan charge- offs/average loans 0.57% 0.39% 47.43% Effective income tax rate 12.13% 19.15% (36.67%) (1) 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 Balance sheet (period end) March 31, 2009 March 31, December 31, to Dec. 31, Assets 2009 2008 % Change 2008 2008 ---- ---- -------- ---- ---------- Cash and due from banks $85,932 $117,716 (27.00)% $76,025 13.03% Due from banks - interest bearing 300,984 3,960 7,500.61 65,145 362.02 Fed Funds sold - 28,024 (100.00) - - Securities 1,333,977 915,360 45.73 935,588 42.58 Loans held for sale 6,945 40,005 (82.64) 3,874 79.27 Portfolio Loans: Commercial and commercial real estate 2,229,395 2,180,514 2.24 2,209,925 0.88 Residential real estate 817,709 934,677 (12.51) 856,999 (4.58) Consumer and home equity 526,645 549,779 (4.21) 537,385 (2.00) ------- ------- ----- ------- ----- Total portfolio loans 3,573,749 3,664,970 (2.49) 3,604,309 (0.85) Allowance for loan losses (54,252) (40,234) 34.84 (49,803) 8.93 ------- ------- ----- ------- ---- Net portfolio loans 3,519,497 3,624,736 (2.90) 3,554,506 (0.98) --------- --------- ----- --------- ----- Premises and equipment, net 93,497 95,759 (2.36) 93,693 (0.21) Accrued interest receivable 21,788 23,274 (6.38) 19,966 9.13 Goodwill and other intangible assets, net 288,332 274,508 5.04 267,883 7.63 Bank-owned life insurance 102,115 99,166 2.97 101,229 0.88 Other assets 106,009 80,276 32.06 104,132 1.80 ------- ------ ----- ------- ---- Total Assets $5,859,076 $5,302,784 10.49% $5,222,041 12.20% ========== ========== ===== ========== ===== Liabilities and Shareholders' Equity Non-interest bearing demand deposits $511,398 $513,057 (0.32)% $486,752 5.06% Interest bearing demand deposits 447,695 425,790 5.14 429,414 4.26 Money market accounts 636,228 586,061 8.56 479,256 32.75 Savings deposits 485,583 446,878 8.66 423,830 14.57 Certificates of deposit 2,124,789 1,867,016 13.81 1,684,664 26.13 --------- --------- ----- --------- ----- Total deposits 4,205,693 3,838,802 9.56 3,503,916 20.03 --------- --------- ---- --------- ----- Federal Home Loan Bank borrowings 588,467 462,857 27.14 596,890 (1.41) Short-term borrowings 227,089 261,136 (13.04) 297,805 (23.75) Junior subordinated debt 111,131 111,049 0.07 111,110 0.02 Accrued interest payable 13,163 12,429 5.91 10,492 25.46 Other liabilities 53,332 28,562 86.72 42,457 25.61 Shareholders' equity (1) 660,201 587,949 12.29 659,371 0.13 ------- ------- ----- ------- ---- Total Liabilities and Shareholders' Equity $5,859,076 $5,302,784 10.49% $5,222,041 12.20% ========== ========== ===== ========== ===== Average balance sheet and net interest margin analysis ------------------------- Three months ended March 31, 2009 2008 ---- ---- Average Average Average Average Assets Balance Rate Balance Rate ------- ---- ------- ---- Due from banks - interest bearing $35,902 0.01% $2,459 3.13% Loans, net of unearned income 3,598,710 5.87% 3,720,600 6.90% Securities: Taxable 653,516 4.60% 544,974 5.33% Tax-exempt 328,275 6.59% 355,140 6.58% ------- ---- ------- ---- Total securities 981,791 5.27% 900,114 5.81% Federal funds sold 8,356 0.24% 31,337 2.82% Other earning assets (2) 32,341 1.30% 28,842 2.86% ------ ---- ------ ---- Total earning assets 4,657,100 5.65% 4,683,352 6.64% Other assets 599,712 636,291 ------- ------- Total Assets $5,256,812 $5,319,643 ========== ========== Liabilities and Shareholders' Equity Interest bearing demand deposits $432,378 0.61% $415,603 2.06% Money market accounts 484,425 1.04% 595,863 1.62% Savings deposits 432,432 0.50% 442,185 0.91% Certificates of deposit 1,736,511 3.13% 1,907,753 4.57% --------- ---- --------- ---- Total interest bearing deposits 3,085,746 2.08% 3,361,404 3.25% Federal Home Loan Bank borrowings 593,244 3.85% 452,337 4.07% Short-term borrowings 238,070 3.52% 280,738 3.85% Junior subordinated debt 111,121 5.62% 111,025 6.82% ------- ---- ------- ---- Total interest bearing liabilities 4,028,181 2.52% 4,205,504 3.48% --------- ---- --------- ---- Non-interest bearing demand deposits 514,973 484,410 Other liabilities 49,381 46,447 Shareholders' equity 664,277 583,282 ------- ------- Total Liabilities and Shareholders' Equity $5,256,812 $5,319,643 ========== ========== Taxable equivalent net interest spread 3.13% 3.16% ==== ==== Taxable equivalent net interest margin 3.47% 3.52% ==== ==== (1) Shareholders equity at March 31, 2009, and December 31, 2008 includes preferred stock and warrants issued to the U.S. Treasury in the total amount of $75.1 million and $75.0 million, respectively. (2) Federal Home Loan Bank stock and equity securities that do not have readily determinable fair market values. WESBANCO, INC. Consolidated Selected Financial Highlights ------------------------------------------ (unaudited, dollars in thousands, except per share amounts) Quarter Ended ------------- Mar. 31, Dec. 31 Sept. 30, Statement of income 2009 2008 2008 ------------------- ---- ---- ---- Interest income $63,201 $67,722 $68,675 Interest expense 25,074 26,875 28,388 ------ ------ ------ Net interest income 38,127 40,847 40,287 Provision for credit losses 9,550 15,044 6,457 ----- ------ ----- Net interest income after provision for credit losses 28,577 25,803 33,830 ------ ------ ------ Non-interest income Trust fees 3,353 3,181 3,639 Service charges on deposits 5,217 6,083 6,280 Bank-owned life insurance 892 1,111 934 Net securities gains 142 374 276 Net gains on sales of mortgage loans 488 535 595 Other income 2,344 1,206 3,246 ----- ----- ----- Total non-interest income 12,436 12,490 14,970 Non-interest expense Salaries and employee benefits 17,874 17,292 18,042 Net occupancy 2,744 2,428 2,511 Equipment 2,542 2,782 2,739 Core deposit intangibles 698 939 950 Marketing expense 756 1,210 2,078 Merger and restructuring expenses 429 701 539 Other operating expenses 9,769 8,377 9,306 ----- ----- ----- Total non-interest expense 34,812 33,729 36,165 ------ ------ ------ Income before provision for income taxes 6,201 4,564 12,635 Provision for income taxes 752 (1,257) 1,126 --- ------ ----- Net income $5,449 $5,821 $11,509 ====== ====== ======= Preferred dividends 1,055 293 - ----- --- --- Net Income available to Common Shareholders $4,394 $5,528 $11,509 ====== ====== ======= Taxable equivalent net interest income $40,019 $42,792 $42,220 Per common share data --------------------- Net income per common share - basic $0.17 $0.21 $0.43 Net income per common share - diluted $0.17 $0.21 $0.43 Dividends declared $0.28 $0.28 $0.28 Book value (period end) $24.85 $24.82 $22.04 Tangible book value (period end) $14.00 $14.74 $11.91 Tangible common book value (period end) $11.27 $12.02 $11.91 Average common shares outstanding - basic 26,561,490 26,560,889 26,550,318 Average common shares outstanding - diluted 26,563,945 26,579,724 26,561,874 Period end common shares outstanding 26,567,653 26,560,889 26,560,889 Period end preferred shares outstanding 75,000 75,000 - Full time equivalent employees (2) 1,448 1,501 1,519 Selected ratios --------------- Return on average assets 0.34% 0.42% 0.88% Return on average equity 2.68% 3.59% 7.78% Return on average common equity 3.01% 3.72% 7.78% Return on average tangible common equity 5.51% 6.80% 14.36% Yield on earning assets (1) 5.65% 6.04% 6.18% Cost of interest bearing liabilities 2.52% 2.65% 2.80% Net interest spread (1) 3.13% 3.39% 3.38% Net interest margin (1) 3.47% 3.71% 3.70% Efficiency (1) 66.37% 61.01% 63.24% Average loans to average deposits 99.94% 101.75% 101.25% Trust Assets, market value at period end $2,259,987 $2,400,211 $2,732,514 Quarter Ended ------------- June 30, Mar 31, Statement of income 2008 2008 ------------------- ---- ---- Interest income $70,588 $74,781 Interest expense 29,929 36,037 ------ ------ Net interest income 40,659 38,744 Provision for credit losses 5,723 5,425 ----- ----- Net interest income after provision for credit losses 34,936 33,319 ------ ------ Non-interest income Trust fees 3,939 4,124 Service charges on deposits 6,020 5,603 Bank-owned life insurance 902 860 Net securities gains 400 506 Net gains on sales of mortgage loans 408 56 Other income 3,122 3,946 ----- ----- Total non-interest income 14,791 15,095 Non-interest expense Salaries and employee benefits 18,223 18,566 Net occupancy 2,435 3,088 Equipment 2,862 2,584 Core deposit intangibles 908 1,014 Marketing expense 1,211 1,169 Merger and restructuring expenses 1,656 1,049 Other operating expenses 8,775 9,190 ----- ----- Total non-interest expense 36,070 36,660 ------ ------ Income before provision for income taxes 13,657 11,754 Provision for income taxes 2,373 2,251 ----- ----- Net income $11,284 $9,503 ======= ====== Preferred dividends - - - - Net Income available to Common Shareholders $11,284 $9,503 ======= ====== Taxable equivalent net interest income $42,557 $40,790 Per common share data --------------------- Net income per common share - basic $0.42 $0.36 Net income per common share - diluted $0.42 $0.36 Dividends declared $0.28 $0.28 Book value (period end) $21.98 $22.15 Tangible book value (period end) $11.79 $11.81 Tangible common book value (period end) $11.79 $11.81 Average common shares outstanding - basic 26,547,498 26,547,073 Average common shares outstanding - diluted 26,553,724 26,556,104 Period end common shares outstanding 26,547,697 26,547,073 Period end preferred shares outstanding - - Full time equivalent employees (2) 1,539 1,566 Selected ratios --------------- Return on average assets 0.87% 0.72% Return on average equity 7.67% 6.55% Return on average common equity 7.67% 6.55% Return on average tangible common equity 14.17% 12.47% Yield on earning assets (1) 6.40% 6.64% Cost of interest bearing liabilities 2.95% 3.48% Net interest spread (1) 3.45% 3.16% Net interest margin (1) 3.75% 3.52% Efficiency (1) 62.90% 65.60% Average loans to average deposits 98.52% 96.74% Trust Assets, market value at period end $2,921,768 $2,951,052 (1) 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. (2) Excludes AmTrust employees which were acquired on 3/27/09. WESBANCO, INC. Consolidated Selected Financial Highlights ------------------------------------------ (unaudited, dollars in thousands) Quarter Ended ------------- Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31, Asset quality data 2009 2008 2008 2008 2008 ------------------ ---- ---- ---- ---- ---- Non-performing assets: Non-accrual loans $55,959 $31,737 $34,384 $29,660 $26,530 Renegotiated loans 14,580 4,559 - - - ------ ----- - - - Total non-performing loans 70,539 36,296 34,384 29,660 26,530 Other real estate and repossessed assets 2,754 2,554 2,800 2,751 3,457 ----- ----- ----- ----- ----- Total non-performing assets $73,293 $38,850 $37,184 $32,411 $29,987 Loans past due 90 days or more and accruing 5,655 18,810 12,274 15,213 14,000 Total non-performing assets and loans past due 90 days or more $78,948 $57,660 $49,458 $47,624 $43,987 ======= ======= ======= ======= ======= Loans past due 90 days or more and accruing / total loans 0.16% 0.52% 0.34% 0.41% 0.39% Non-performing loans/total loans 1.97% 1.01% 0.96% 0.82% 0.72% ---- ---- ---- ---- ---- Non-performing loans and loans past due 90 days or more/total loans 2.13% 1.53% 1.30% 1.23% 1.11% ==== ==== ==== ==== ==== Non-performing assets/total loans, other real estate and repossessed assets 2.05% 1.08% 1.03% 0.89% 0.82% Allowance for loan losses ------------------------- Allowance for loan losses $54,252 $49,803 $43,480 $41,852 $40,234 Provision for loan losses 9,550 15,000 6,549 5,700 5,275 Net loan charge-offs 5,102 8,652 4,947 4,087 3,584 Annualized net loan charge-offs / average loans 0.57% 0.96% 0.55% 0.45% 0.39% Allowance for loan losses/total loans 1.52% 1.38% 1.21% 1.15% 1.10% Allowance for loan losses/non-performing loans 0.77 x 1.37 x 1.26 x 1.41 x 1.52 x Allowance for loan losses/ non-performing loans and past due 90 days or more 0.71 x 0.90 x 0.93 x 0.93 x 0.99 x Quarter Ended ------------- Mar. 31, Dec. 31, Sept. 30, June 30, Mar. 31, 2009 2008 2008 2008 2008 ---- ---- ---- ---- ---- Capital ratios -------------- Tier I leverage capital 9.71% 10.27% 8.82% 8.63% 8.30% Tier I risk-based capital 12.19% 13.21% 11.44% 11.17% 10.87% Total risk-based capital 13.44% 14.46% 12.59% 12.28% 11.93% Shareholders' equity to assets 12.64% 11.82% 11.37% 11.34% 10.96% Tangible equity to tangible assets (1) 6.68% 7.90% 6.48% 6.29% 6.23% Tangible common equity to tangible assets (1) 5.38% 6.44% 6.48% 6.29% 6.23% (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. Tangible common equity also excludes preferred stock, net of discount. The calculation is based on period end balances.
WesBanco, Inc.
CONTACT: Paul M. Limbert, President and Chief Executive Officer, or
Robert H. Young, Executive Vice President and Chief Financial Officer, both of
WesBanco, Inc., +1-304-234-9000
Web Site: http://www.wesbanco.com/
