WHEELING, W.Va., Oct. 25 /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 third quarter and year-to-date periods ended September 30, 2010.
Net income available to common shareholders for the quarter ended September 30, 2010 was $9.2 million as compared to $2.3 million for the third quarter of 2009, representing an increase of 294%, while diluted earnings per common share were $0.34 for the third quarter of 2010, as compared to $0.09 per common share for the third quarter of 2009. For the nine month period, net income available to common shareholders was $25.3 million or $0.95 per common share, while for the same period in 2009, net income available to common shareholders was $11.4 million or $0.43 per common share. Net income available to common shareholders increased 122% in the first nine months of 2010 as compared to 2009.
Mr. Limbert commented, "WesBanco has continued to improve profitability, despite the slow economic recovery. Net income grew significantly in the first nine months of 2010, and the quarter ending September 30, 2010 is the fourth consecutive quarter of growth in net income on a linked-quarter basis. The growth in net income was achieved through improving net interest income, improving revenues from the Trust, Securities and Mortgage business units and the significant benefits of repurchasing TARP preferred shares in the third quarter of 2009, combined with a lower provision for the quarter and continued successful cost control throughout the organization."
Net Interest Income
Net interest income increased $1.6 million or 3.9% in the third quarter and $6.0 million or 5.1% in the year-to-date period of 2010 as compared to the same periods in 2009 due to the Bank's ability to manage rates on its loan and deposit accounts. Net interest income has now increased for six consecutive quarters. The net interest margin was 3.61% in the third quarter of 2010 and 3.58% for the nine months ending September 30, 2010, an increase of 26 basis points in both periods as compared to the same periods in 2009. The average rate on interest bearing liabilities decreased by 65 basis points in the third quarter and 61 basis points in the year-to-date period, while the rate on earning assets declined at a much slower pace of 32 basis points in the third quarter and 28 basis points in the first nine months. Lower rates on maturing higher rate certificates of deposit and an increase in lower cost deposits, primarily money market accounts, all contributed to the improvement in the cost of funds. In addition, the average balance for borrowings, which generally have higher interest rates, decreased by $315.3 million or 39.3% in the third quarter of 2010 from the third quarter of 2009, through planned reductions utilizing the liquidity obtained through the branch acquisition in the first quarter of 2009 and pay downs on loans. Improvements in the mix of deposits accounts, with CD's dropping to 41.8% of total deposits and demand deposits increasing to 25.3% of total deposits, also contributed to the improved cost of funds. The margin also benefited from a 8.9% increase in average non-interest bearing deposit balances as a result of retail marketing campaigns and a focus on treasury management deposits from business customers. Total borrowings excluding junior subordinated debt are down to 8.2% of total assets from 14.5% last year.
Provision and Allowance for Credit Losses
The provision for credit losses decreased $4.4 million in the third quarter and $1.1 million in the first nine months of 2010 compared to the same periods of 2009. The provision in the current quarter was stable compared to each of the preceding quarters in 2010.
Net charge-offs increased $5.6 million in the third quarter compared to the second quarter of 2010 due to $10.5 million of charge-offs relating to the sale of $11.6 million of commercial real estate and $3.0 million of commercial loans at carrying value. Previous reserves associated with these loans totaled $5.4 million. Net charge-offs in the current quarter also include $1.5 million attributable to a foreclosure on a $2.9 million non-accrual commercial real estate loan. The allowance for loan losses decreased $6.2 million compared to June 30, 2010 and $2.2 million compared to December 31, 2009 due primarily to the reduction of required reserves attributable to loans that were sold or otherwise charged down in the current quarter. The allowance for loan losses was 1.78% of total loans at September 30, 2010 compared to 1.76% at December 31, 2009 and 1.74% at September 30, 2009.
Non-accrual loans decreased $11.7 million from year-end primarily as a result of the sale or foreclosure of loans in the current and prior quarters and other successful efforts to exit or reduce this category of loans. However, total non-performing loans increased $8.8 million in the third quarter compared to December 31, 2009 due to a $20.5 million increase in renegotiated loans that continue to perform in accordance with their modified terms. Loans past due 30 days or more and accruing interest decreased $9.4 million in the current quarter compared to June 30, 2010 and were also slightly down from year end.
Non-Interest Income and Non-Interest Expense
For the third quarter of 2010 non-interest income decreased $3.6 million and for the nine months ended September 30, 2010 it decreased $2.7 million as compared to the same period in 2009. The quarterly decrease was principally due to a $1.8 million decline in service charges on deposits resulting from changes in overdraft fee structures mandated by recent regulatory changes, reduced income from bank owned life insurance due to a benefit claim recognized in the third quarter of 2009 and increased losses on other real estate owned. The year-to-date decrease is due to decreases in service charges on deposits and $3.1 million in year-to-date write-downs in other real estate owned of a hotel property. Improvements in non-interest income included trust fee growth of 12.9% in the first nine months of 2010 as compared to the first nine months of 2009 due to new business developed this year and improved market conditions. In addition, revenue increased in most other major non-interest operating areas including electronic banking fees, securities brokerage revenue and mortgage banking.
Non-interest expenses decreased $2.0 million in the third quarter and $6.4 million year-to-date as compared to the same periods in 2009. WesBanco significantly reduced expenses in most expense categories including salaries and wages, employee benefits, marketing and professional fees, somewhat offset by increases in foreclosure-related property expenses and occupancy expenses. In addition, the year-to-date expense reduction includes a decrease in FDIC insurance of $2.1 million primarily due to a special assessment of $2.6 million in the second quarter of 2009, partially offset by premium increases due to higher deposit levels.
Financial Condition
Total assets decreased 3.6% from last September, while decreasing only 0.6% as compared to year end 2009. Portfolio loans decreased 5.2% from last September, primarily due to continued strategic decreases in residential real estate loans, a focus on reasonable credit terms for borrowers and compressed demand for commercial and consumer loans as a result of the slow economic recovery. Total deposits increased by 4.1%, primarily due to a 25.8% increase in money market deposits, which, combined with smaller increases in demand and savings deposits more than offset a 6.7% decrease in CDs. The reduction in CDs was due to planned reductions of non-relationship customers acquired with the branch acquisition in 2009. Total borrowings, excluding junior subordinated debt, decreased by $365.2 million or 45.4% as compared to September 30, 2009 and 35.8% as compared to December 31, 2009, funded by the increased deposits and the decreases in loans. The planned deleveraging of the balance sheet, together with weak loan demand as a result of the prolonged recession, resulted in a reduction of total average earning assets by 4.9% in the third quarter and 3.6% for the nine month period as compared to 2009.
WesBanco continues to maintain strong regulatory capital ratios of 8.17% tier I leverage, 11.64% tier I risk-based capital, and 12.89% total risk-based capital, all of which improved in each of the last four consecutive quarters and are above the "well-capitalized" standards promulgated by bank regulators. Total tangible equity to tangible assets (non-GAAP measure) improved to 6.34% at September 30, 2010 from 6.27% at June 30, 2010 and from 5.88% at year end, primarily due to balance sheet management strategies and a 3.3% increase in shareholders' equity from December 31, 2009. The increase in shareholders' equity was the result of improved operating results and increases in other comprehensive income due to higher unrealized securities gains.
WesBanco is a multi-state bank holding company with total assets of approximately $5.4 billion, operating through 112 branch locations and 134 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, 2009 and documents subsequently filed by WesBanco with the Securities and Exchange Commission ("SEC"), including WesBanco's Forms 10-Q for the quarters ended March 31, and June 30, 2010, 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 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, Financial Institution Regulatory Authority, Municipal Securities Rulemaking Board, Securities Investors Protection Corporation, and other regulatory bodies; potential legislative and federal and state regulatory actions and reform, including, without limitation, the impact of the implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act; 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.
Website: http://www.wesbanco.com/ WESBANCO, INC. Consolidated Selected Financial Highlights ------------------------------------------ (unaudited, dollars in thousands, except per share amounts) For the Three Months Ended STATEMENT OF INCOME September 30, ------------ ------------- Interest and dividend income 2010 2009 % Change ---- ---- -------- Loans, including fees $46,753 $50,970 (8.27%) Interest and dividends on securities: Taxable 8,957 10,563 (15.20%) Tax-exempt 2,763 3,595 (23.14%) ----- ----- -------- Total interest and dividends on securities 11,720 14,158 (17.22%) ------ ------ -------- Other interest income 103 84 22.62% --- --- ----- Total interest and dividend income 58,576 65,212 (10.18%) ------ ------ -------- Interest Expense Interest bearing demand deposits 650 787 (17.41%) Money market deposits 1,821 1,758 3.58% Savings deposits 533 606 (12.05%) Certificates of deposit 8,817 13,062 (32.50%) ----- ------ -------- Total interest expense on deposits 11,821 16,213 (27.09%) Federal Home Loan Bank borrowings 2,576 5,568 (53.74%) Other short-term borrowings 1,207 1,780 (32.19%) Junior subordinated debt owed to unconsolidated subsidiary trusts 986 1,222 (19.31%) --- ----- -------- Total interest expense 16,590 24,783 (33.06%) ------ ------ -------- Net interest income 41,986 40,429 3.85% Provision for credit losses 11,778 16,200 (27.30%) ------ ------ -------- Net interest income after provision for credit losses 30,208 24,229 24.68% ------ ------ ----- Non-interest income Trust fees 3,765 3,508 7.33% Service charges on deposits 4,897 6,648 (26.34%) Electronic banking fees 2,230 1,953 14.18% Net securities brokerage revenue 1,217 1,310 (7.10%) Bank-owned life insurance 879 1,873 (53.07%) Net securities gains 981 1,329 (26.19%) Net gains on sales of mortgage loans 985 820 20.12% Net loss on other real estate owned and other assets (654) 29 (2355.17%) Other income 676 1,085 (37.70%) --- ----- -------- Total non- interest income 14,976 18,555 (19.29%) ------ ------ -------- Non-interest expense Salaries and wages 13,749 13,920 (1.23%) Employee benefits 4,671 5,240 (10.86%) Net occupancy 2,534 2,572 (1.48%) Equipment 2,460 2,888 (14.82%) Marketing 1,223 1,486 (17.70%) FDIC Insurance 1,740 1,528 13.87% Amortization of intangible assets 676 806 (16.13%) Restructuring and merger-related expenses (32) 2 (1700.00%) Other operating expenses 8,660 9,263 (6.51%) ----- ----- ------- Total non- interest expense 35,681 37,705 (5.37%) ------ ------ ------- Income before provision for income taxes 9,503 5,079 87.10% Provision for income taxes 350 (363) 196.42% --- ---- ------ Net income $9,153 $5,442 68.19% ====== ====== ===== Preferred dividends and expenses associated with unamortized discount and issuance costs - 3,121 (100.00%) --- ----- Net Income available to common shareholders $9,153 $2,321 294.36% ====== ====== ====== Taxable equivalent net interest income $43,474 $42,365 2.62% Per common share data ---------------- Net income available per common share - basic $0.34 $0.09 277.78% Net income available per common share - diluted $0.34 $0.09 277.78% Dividends declared $0.14 $0.14 0.00% Book value (period end) Tangible book value (period end) (1) Average common shares outstanding - basic 26,586,953 26,567,653 0.07% Average common shares outstanding - diluted 26,587,281 26,568,081 0.07% Period end common shares outstanding 26,586,953 26,567,653 0.07% For the Nine Months Ended STATEMENT OF INCOME September 30, ------------------- ------------- Interest and dividend income 2010 2009 % Change ---- ---- -------- Loans, including fees $143,038 $154,513 (7.43%) Interest and dividends on securities: Taxable 26,792 28,872 (7.20%) Tax-exempt 8,609 10,806 (20.33%) ----- ------ -------- Total interest and dividends on securities 35,401 39,678 (10.78%) ------ ------ -------- Other interest income 299 302 (0.99%) --- --- ------- Total interest and dividend income 178,738 194,493 (8.10%) ------- ------- ------- Interest Expense Interest bearing demand deposits 1,957 2,163 (9.52%) Money market deposits 5,949 4,853 22.58% Savings deposits 1,758 1,784 (1.46%) Certificates of deposit 28,299 41,221 (31.35%) ------ ------ -------- Total interest expense on deposits 37,963 50,021 (24.11%) Federal Home Loan Bank borrowings 10,477 16,814 (37.69%) Other short-term borrowings 3,558 5,619 (36.68%) Junior subordinated debt owed to unconsolidated subsidiary trusts 2,974 4,232 (29.73%) ----- ----- -------- Total interest expense 54,972 76,686 (28.32%) ------ ------ -------- Net interest income 123,766 117,807 5.06% Provision for credit losses 34,953 36,019 (2.96%) ------ ------ ------- Net interest income after provision for credit losses 88,813 81,788 8.59% ------ ------ ---- Non-interest income Trust fees 11,459 10,149 12.91% Service charges on deposits 15,914 17,941 (11.30%) Electronic banking fees 6,335 5,554 14.06% Net securities brokerage revenue 3,642 3,110 17.11% Bank-owned life insurance 2,789 3,661 (23.82%) Net securities gains 3,284 3,933 (16.50%) Net gains on sales of mortgage loans 2,079 1,606 29.45% Net loss on other real estate owned and other assets (3,499) (397) 781.36% Other income 2,599 1,744 49.03% ----- ----- ----- Total non-interest income 44,602 47,301 (5.71%) ------ ------ ------- Non-interest expense Salaries and wages 40,326 41,085 (1.85%) Employee benefits 14,016 15,008 (6.61%) Net occupancy 8,133 7,676 5.95% Equipment 7,440 8,117 (8.34%) Marketing 3,008 3,961 (24.06%) FDIC Insurance 5,028 7,104 (29.22%) Amortization of intangible assets 2,060 2,315 (11.02%) Restructuring and merger-related expenses 175 623 (71.91%) Other operating expenses 25,454 26,174 (2.75%) ------ ------ ------- Total non-interest expense 105,640 112,063 (5.73%) ------- ------- ------- Income before provision for income taxes 27,775 17,026 63.13% Provision for income taxes 2,473 390 534.10% ----- --- ------ Net income $25,302 $16,636 52.09% ======= ======= ===== Preferred dividends and expenses associated with unamortized discount and issuance costs - 5,233 (100.00%) --- ----- Net Income available to common shareholders $25,302 $11,403 121.89% ======= ======= ====== Taxable equivalent net interest income $128,402 $123,626 3.86% Per common share data --------------------- Net income available per common share - basic $0.95 $0.43 120.93% Net income available per common share - diluted $0.95 $0.43 120.93% Dividends declared $0.42 $0.70 (40.00%) Book value (period end) $22.88 $22.30 2.60% Tangible book value (period end) (1) $12.11 $11.41 6.13% Average common shares outstanding -basic 26,577,302 26,565,621 0.04% Average common shares outstanding - diluted 26,577,827 26,567,174 0.04% Period end common shares outstanding 26,586,953 26,567,653 0.07% (1) See non-GAAP financial measures for additional information relating to the calculation of this item. WESBANCO, INC. Consolidated Selected Financial Highlights (unaudited, dollars in thousands) Selected ratios --------------- For the Nine Months Ended September 30, ------------- 2010 2009 % Change ---- ---- -------- Return on average assets 0.62% 0.40% 56.75% Return on average equity 5.60 3.39 65.40 Return on average tangible equity (1) 11.25 6.48 73.61 Yield on earning assets (2) 5.11 5.39 (5.12) Cost of interest bearing liabilities 1.74 2.35 (26.08) Net interest spread (2) 3.38 3.03 11.44 Net interest margin (2) 3.58 3.32 7.83 Efficiency (2) 61.06 65.56 (6.86) Average loans to average deposits 83.32 90.18 (7.61) Annualized net loan charge- offs/average loans 1.44 0.95 51.82 Effective income tax rate 8.90 2.29 288.65 Trust Assets, market value at period end $2,797,935 $2,579,384 8.47 For the Quarter Ending ---------------------- Sept. 30, June 30, Mar. 31, 2010 2010 2010 ---- ---- ---- Return on average assets 0.67% 0.61% 0.59% Return on average equity 5.96 5.47 5.36 Return on average tangible equity (1) 11.80 10.98 10.94 Yield on earning assets (2) 4.98 5.10 5.26 Cost of interest bearing liabilities 1.56 1.74 1.91 Net interest spread (2) 3.42 3.36 3.35 Net interest margin (2) 3.61 3.56 3.57 Efficiency (2) 61.05 60.36 61.78 Average loans to average deposits 80.60 83.37 86.16 Annualized net loan charge- offs/average loans 2.09 1.42 0.83 Effective income tax rate 3.69 13.20 9.91 Trust Assets, market value at period end $2,797,935 $2,614,284 $2,778,687 For the Quarter Ending ---------------------- Dec. 31, Sept. 30, 2009 2009 ---- ---- Return on average assets 0.53% 0.38% Return on average equity 4.85 3.35 Return on average tangible equity (1) 10.06 6.68 Yield on earning assets (2) 5.28 5.30 Cost of interest bearing liabilities 2.05 2.21 Net interest spread (2) 3.23 3.09 Net interest margin (2) 3.46 3.35 Efficiency (2) 63.09 61.89 Average loans to average deposits 87.22 87.21 Annualized net loan charge- offs/average loans 1.59 1.58 Effective income tax rate (23.36) (7.15) Trust Assets, market value at period end $2,668,610 $2,579,384 (1) See non-GAAP financial measures for additional information relating to the calculation of this item. (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. WESBANCO, INC. Consolidated Selected Financial Highlights (unaudited, dollars in thousands) Balance sheets September 30, -------------- ------------- Assets 2010 2009 % Change ---- ---- -------- Cash and due from banks $88,371 $75,257 17.43% Due from banks - interest bearing 583 11,999 (95.14) Securities: Available-for-sale, at fair value 893,414 1,417,687 (36.98) Held-to-maturity (fair values of 476,710; 931 and 1,443, respectively) 465,297 1,450 NM ------- ----- --- Total securities 1,358,711 1,419,137 (4.26) --------- --------- ----- Loans held for sale 13,132 6,860 91.43 ------ ----- ----- Portfolio Loans: Commercial 431,996 463,948 (6.89) Commercial real estate 1,733,426 1,764,791 (1.78) Residential real estate 635,934 739,151 (13.96) Home equity 248,481 235,427 5.54 Consumer 268,265 298,305 (10.07) ------- ------- ------ Total portfolio loans, net of unearned income 3,318,102 3,501,622 (5.24) Allowance for loan losses (58,989) (60,755) 2.91 ------- ------- ---- Net portfolio loans 3,259,113 3,440,867 (5.28) --------- --------- ----- Premises and equipment, net 85,868 91,411 (6.06) Accrued interest receivable 20,882 22,091 (5.47) Goodwill and other intangible assets, net 286,228 289,087 (0.99) Bank-owned life insurance 106,054 102,670 3.30 Other assets 143,681 101,712 41.26 Total Assets $5,362,623 $5,561,091 (3.57)% ========== ========== ====== Liabilities Deposits: Non-interest bearing demand $562,770 $514,726 9.33% Interest bearing demand 493,172 467,085 5.59 Money market 853,324 678,099 25.84 Savings deposits 520,074 479,342 8.50 Certificates of deposit 1,741,736 1,866,256 (6.67) --------- --------- ----- Total deposits 4,171,076 4,005,508 4.13 --------- --------- ---- Federal Home Loan Bank borrowings 259,179 567,939 (54.36) Other short-term borrowings 180,422 236,884 (23.84) Junior subordinated debt owed to unconsolidated subsidiary trusts 106,027 111,175 (4.63) ------- ------- ----- Total borrowings 545,628 915,998 (40.43) ------- ------- ------ Accrued interest payable 6,888 10,664 (35.41) Other liabilities 30,744 36,586 (15.97) ------ Total liabilities 4,754,336 4,968,756 (4.32) --------- --------- ----- Shareholders' Equity Preferred stock, no par value; 1,000,000 shares authorized; none outstanding - - - Common stock, $2.0833 par value; 50,000,000 shares authorized; 26,633,848 shares issued; 26,586,953 shares, 26,567,653 shares and 26,567,653 shares outstanding, respectively 55,487 55,487 - Capital surplus 191,902 193,211 (0.68) Retained earnings 354,925 337,211 5.25 Treasury stock (46,895; 66,195 and 66,195 shares -at cost, respectively) (1,063) (1,498) 29.02 Accumulated other comprehensive income 8,221 9,195 10.59 Deferred benefits for directors (1,185) (1,271) 6.73 ---- Total Shareholders' Equity 608,287 592,335 2.69 ------- ------- Total Liabilities and Shareholders' Equity $5,362,623 $5,561,091 (3.57)% ========== ========== ====== (unaudited, dollars in thousands) % Change Balance sheets December 31, December 31, 2009 -------------- ------------ Assets 2009 to September 30, 2010 ---- --------------------- Cash and due from banks $72,054 22.65% Due from banks -interest bearing 10,813 (94.61) Securities: Available-for-sale, at fair value 1,261,804 (29.20) Held-to-maturity (fair values of 476,710; 931 and 1,443, respectively) 1,450 NM ----- --- Total securities 1,263,254 7.56 --------- ---- Loans held for sale 9,441 39.10 ----- ----- Portfolio Loans: Commercial 451,688 (4.36) Commercial real estate 1,780,221 (2.63) Residential real estate 708,397 (10.23) Home equity 239,784 3.63 Consumer 290,856 (7.77) ------- ----- Total portfolio loans, net of unearned income 3,470,946 (4.40) Allowance for loan losses (61,160) 3.55 ------- ---- Net portfolio loans 3,409,786 (4.42) --------- ----- Premises and equipment, net 89,603 (4.17) Accrued interest receivable 20,048 4.16 Goodwill and other intangible assets, net 288,292 (0.72) Bank-owned life insurance 103,637 2.33 Other assets 130,424 10.16 Total Assets $5,397,352 (0.64)% ========== ====== Liabilities Deposits: Non-interest bearing demand $545,019 3.26% Interest bearing demand 450,697 9.42 Money market 714,926 19.36 Savings deposits 486,055 7.00 Certificates of deposit 1,777,536 (2.01) --------- ----- Total deposits 3,974,233 4.95 --------- ---- Federal Home Loan Bank borrowings 496,393 (47.79) Other short-term borrowings 188,522 (4.30) Junior subordinated debt owed to unconsolidated subsidiary trusts 111,176 (4.63) ------- ----- Total borrowings 796,091 (31.46) ------- ------ Accrued interest payable 9,208 (25.20) Other liabilities 29,104 5.63 Total liabilities 4,808,636 (1.13) --------- ----- Shareholders' Equity Preferred stock, no par value; 1,000,000 shares authorized; none outstanding - - Common stock, $2.0833 par value; 50,000,000 shares authorized; 26,633,848 shares issued; 26,586,953 shares, 26,567,653 shares and 26,567,653 shares outstanding, respectively 55,487 - Capital surplus 192,268 (0.19) Retained earnings 340,788 4.15 Treasury stock (46,895; 66,195 and 66,195 shares -at cost, respectively) (1,498) 29.02 Accumulated other comprehensive income 2,949 178.77 Deferred benefits for directors (1,278) 7.24 Total Shareholders' Equity 588,716 3.32 ------- ---- Total Liabilities and Shareholders' Equity $5,397,352 (0.64)% ========== ====== NM - Not Meaningful WESBANCO, INC. Consolidated Selected Financial Highlights (unaudited, dollars in thousands) Average balance sheet and --------------- net interest margin analysis Three Months Ended September 30, ------------------- 2010 2009 ---- ---- Average Average Average Average Assets Balance Rate Balance Rate ------- ---- ------- ---- Due from banks - interest bearing $79,613 0.32% $38,772 0.19% Loans, net of unearned income (1) 3,367,628 5.51% 3,529,534 5.73% Securities: (2) Taxable 1,054,588 3.40% 1,100,345 3.84% Tax-exempt (3) 260,944 6.52% 337,130 6.56% ------- ---- ------- ---- Total securities 1,315,532 4.02% 1,437,475 4.48% Federal funds sold - 0.00% - 0.00% Other earning assets 29,743 0.54% 31,911 0.83% ------ ---- ------ ---- Total earning assets (3) 4,792,516 4.98% 5,037,692 5.30% Other assets 629,665 624,389 Total Assets $5,422,181 $5,662,081 ========== ========== Liabilities and Shareholders' Equity Interest bearing demand deposits $474,897 0.54% $456,939 0.68% Money market accounts 851,910 0.85% 680,008 1.03% Savings deposits 518,272 0.41% 483,273 0.50% Certificates of deposit 1,765,540 1.98% 1,905,645 2.72% --------- ---- --------- ---- Total interest bearing deposits 3,610,619 1.30% 3,525,865 1.82% Federal Home Loan Bank borrowings 303,377 3.37% 574,097 3.85% Other borrowings 183,895 2.60% 228,514 3.09% Junior subordinated debt 109,889 3.56% 111,164 4.36% ------- ---- ------- ---- Total interest bearing liabilities 4,207,780 1.56% 4,439,640 2.21% --------- ---- --------- ---- Non-interest bearing demand deposits 567,645 521,477 Other liabilities 37,824 57,260 Shareholders' equity 608,932 643,704 ------- ------- Total Liabilities and Shareholders' Equity $5,422,181 $5,662,081 ========== ========== Taxable equivalent net interest spread 3.42% 3.09% ==== ==== Taxable equivalent net interest margin 3.61% 3.35% ==== ==== Average balance sheet and --------------- net interest margin analysis Nine Months Ended September 30, ---------------- ------------------------------- 2010 2009 ---- ---- Average Average Average Average Assets Balance Rate Balance Rate ------- ---- ------- ---- Due from banks - interest bearing $95,895 0.23% $43,606 0.19% Loans, net of unearned income (1) 3,414,824 5.60% 3,563,632 5.80% Securities: (2) Taxable 981,320 3.64% 991,584 3.88% Tax-exempt (3) 269,142 6.56% 336,334 6.59% ------- ---- ------- ---- Total securities 1,250,462 4.27% 1,327,918 4.57% Federal funds sold - - 2,755 0.24% Other earning assets 30,121 0.60% 32,055 0.97% ------ ---- ------ ---- Total earning assets (3) 4,791,302 5.11% 4,969,966 5.39% Other assets 633,237 620,730 Total Assets $5,424,539 $5,590,696 ========== ========== Liabilities and Shareholders' Equity Interest bearing demand deposits $468,571 0.56% $452,836 0.64% Money market accounts 804,810 0.99% 604,735 1.07% Savings deposits 508,740 0.46% 466,819 0.51% Certificates of deposit 1,763,315 2.15% 1,906,149 2.89% --------- ---- --------- ---- Total interest bearing deposits 3,545,436 1.43% 3,430,539 1.95% Federal Home Loan Bank borrowings 393,279 3.56% 583,837 3.85% Other borrowings 181,441 2.62% 232,982 3.22% Junior subordinated debt 110,739 3.59% 111,143 5.09% ------- ---- ------- ---- Total interest bearing liabilities 4,230,895 1.74% 4,358,501 2.35% --------- ---- --------- ---- Non-interest bearing demand deposits 553,170 521,157 Other liabilities 36,672 54,405 Shareholders' equity 603,802 656,633 ------- ------- Total Liabilities and Shareholders' Equity $5,424,539 $5,590,696 ========== ========== Taxable equivalent net interest spread 3.38% 3.03% ==== ==== Taxable equivalent net interest margin 3.58% 3.32% ==== ==== (1) Gross of allowance for loan losses and net of unearned income. Includes non-accrual and loans held for sale. Loan fees included in interest income on loans are $0.9 million and $3.1 million for the three and nine months ended September 30, 2010, respectively, and $0.9 million and $3.7 million for the same periods in 2009. (2) Average yields on available-for sale securities are calculated based on amortized cost. (3) Taxable equivalent basis is calculated on tax-exempt securities using a rate of 35% for each period presented. WESBANCO, INC. Consolidated Selected Financial Highlights ------------------------------------------ (unaudited, dollars in thousands, except per share amounts) Quarter Ended ------------- Statement of Income Sept. 30, June 30, Mar. 31, ------------------- Interest income 2010 2010 2010 ---- ---- ---- Loans, including fees $46,753 $47,911 $48,375 Interest and dividends on securities: Taxable 8,957 8,724 9,111 Tax-exempt 2,763 2,851 2,994 ----- ----- ----- Total interest and dividends on securities 11,720 11,575 12,105 ------ ------ ------ Other interest income 103 111 85 --- --- --- Total interest and dividend income 58,576 59,597 60,565 ------ ------ ------ Interest Expense Interest bearing demand deposits 650 636 670 Money market deposits 1,821 2,185 1,943 Savings deposits 533 623 602 Certificates of deposit 8,817 9,322 10,160 ----- ----- ------ Total interest expense on deposits 11,821 12,766 13,375 ------ ------ ------ Federal Home Loan Bank borrowings 2,576 3,567 4,334 Other short-term borrowings 1,207 1,173 1,178 Junior subordinated debt owed to unconsolidated subsidiary trusts 986 943 1,045 --- --- ----- Total interest expense 16,590 18,449 19,932 ------ ------ ------ Net interest income 41,986 41,148 40,633 Provision for credit losses 11,778 11,675 11,500 ------ ------ ------ Net interest income after provision for credit losses 30,208 29,473 29,133 Non-interest income Trust fees 3,765 3,636 4,058 Service charges on deposits 4,897 5,701 5,317 Electronic banking fees 2,230 2,190 1,915 Net securities brokerage revenue 1,217 1,055 1,370 Bank-owned life insurance 879 966 944 Net securities gains/ (losses) 981 898 1,405 Net gains on sales of mortgage loans 985 569 525 Net gain (loss) on other real estate owned and other assets (654) (1,315) (1,530) Other income 676 885 1,037 --- --- ----- Total non-interest income 14,976 14,585 15,041 ------ ------ ------ Non-interest expense Salaries and wages 13,749 13,362 13,214 Employee benefits 4,671 4,347 4,997 Net occupancy 2,534 2,540 3,060 Equipment 2,460 2,376 2,604 Marketing 1,223 1,155 630 FDIC Insurance 1,740 1,683 1,605 Amortization of intangible assets 676 685 699 Restructuring and merger- related expenses (32) 7 200 Other operating expenses 8,660 8,412 8,385 ----- ----- ----- Total non-interest expense 35,681 34,567 35,394 ------ ------ ------ Income before provision for income taxes 9,503 9,491 8,780 Provision for income taxes 350 1,253 870 --- ----- --- Net income $9,153 $8,238 $7,910 ====== ====== ====== Preferred dividends - - - --- --- --- Net Income available to common shareholders $9,153 $8,238 $7,910 ====== ====== ====== Taxable equivalent net interest income $43,474 $42,683 $42,245 Per common share data --------------------- Net income available per common share -basic $0.34 $0.31 $0.30 Net income available per common share -diluted $0.34 $0.31 $0.30 Dividends declared $0.14 $0.14 $0.14 Book value (period end) $22.88 $22.74 $22.45 Tangible book value (period end) (1) $12.11 $11.95 $11.63 Average common shares outstanding -basic 26,586,953 26,577,065 26,567,653 Average common shares outstanding -diluted 26,587,281 26,577,828 26,568,172 Period end common shares outstanding 26,586,953 26,586,903 26,567,653 Full time equivalent employees 1,371 1,415 1,379 Quarter Ended ------------- Statement of Income Dec. 31, Sept. 30, ------------------- Interest income 2009 2009 ---- ---- Loans, including fees $49,804 $50,970 Interest and dividends on securities: Taxable 9,779 10,563 Tax-exempt 3,204 3,595 ----- ----- Total interest and dividends on securities 12,983 14,158 ------ ------ Other interest income 84 84 --- --- Total interest and dividend income 62,871 65,212 ------ ------ Interest Expense Interest bearing demand deposits 757 787 Money market deposits 1,834 1,758 Savings deposits 601 606 Certificates of deposit 11,606 13,062 ------ ------ Total interest expense on deposits 14,798 16,213 ------ ------ Federal Home Loan Bank borrowings 5,035 5,568 Other short-term borrowings 1,353 1,780 Junior subordinated debt owed to unconsolidated subsidiary trusts 1,120 1,222 ----- ----- Total interest expense 22,306 24,783 ------ ------ Net interest income 40,565 40,429 Provision for credit losses 14,353 16,200 ------ ------ Net interest income after provision for credit losses 26,212 24,229 Non-interest income Trust fees 3,597 3,508 Service charges on deposits 6,430 6,648 Electronic banking fees 1,868 1,953 Net securities brokerage revenue 1,059 1,310 Bank-owned life insurance 963 1,873 Net securities gains/(losses) 2,113 1,329 Net gains on sales of mortgage loans 489 820 Net gain (loss) on other real estate owned and other assets (350) 29 Other income 1,119 1,085 ----- ----- Total non-interest income 17,288 18,555 ------ ------ Non-interest expense Salaries and wages 13,314 13,920 Employee benefits 4,949 5,240 Net occupancy 2,593 2,572 Equipment 2,609 2,888 Marketing 1,132 1,486 FDIC Insurance 1,713 1,528 Amortization of intangible assets 795 806 Restructuring and merger-related expenses 1,192 2 Other operating expenses 9,288 9,263 ----- ----- Total non-interest expense 37,585 37,705 ------ ------ Income before provision for income taxes 5,915 5,079 Provision for income taxes (1,382) (363) ------ ---- Net income $7,297 $5,442 ====== ====== Preferred dividends - 3,121 --- ----- Net Income available to common shareholders $7,297 $2,321 ====== ====== Taxable equivalent net interest income $42,291 $42,365 Per common share data --------------------- Net income available per common share - basic $0.27 $0.09 Net income available per common share - diluted $0.27 $0.09 Dividends declared $0.14 $0.14 Book value (period end) $22.16 $22.30 Tangible book value (period end) (1) $11.31 $11.41 Average common shares outstanding - basic 26,567,653 26,567,653 Average common shares outstanding - diluted 26,567,653 26,568,081 Period end common shares outstanding 26,567,653 26,567,653 Full time equivalent employees 1,393 1,428 (1) See non-GAAP financial measures for additional information relating to the calculation of this item. WESBANCO, INC. Consolidated Selected Financial Highlights ------------------------------------------ (unaudited, dollars in thousands) Quarter Ended ------------- Sept. 30, June 30, Mar. 31, Asset quality data 2010 2010 2010 ------------------ ---- ---- ---- Non-performing assets: Non-accrual loans $53,578 $65,083 $68,439 Renegotiated loans 35,532 29,472 29,188 ------ ------ ------ Total non-performing loans 89,110 94,555 97,627 Other real estate and repossessed assets 8,577 6,068 7,758 ----- ----- ----- Total non-performing assets $97,687 $100,623 $105,385 Loans past due 90 days or more and accruing 7,316 4,826 5,202 Total non-performing assets and loans past due 90 days or more $105,003 $105,449 $110,587 ======== ======== ======== Loans past due 30-89 days $23,661 $35,517 $24,784 ======= ======= ======= Loans past due 90 days or more and accruing / total loans 0.22% 0.14% 0.15% Non-performing loans/total loans 2.69 2.78 2.84 ---- ---- ---- Non-performing loans and loans past due 90 days or more/total loans 2.91 2.92 2.99 ==== ==== ==== Non-performing assets/total loans, other real estate and repossessed assets 2.94 2.95 3.06 Loans past due 30-89 days/ total loans 0.71 1.04 0.72 Allowance for loan losses ------------------------- Allowance for loan losses $58,989 $65,203 $65,625 Provision for loan losses 11,491 11,675 11,500 Net loan and deposit account overdraft charge-offs 17,705 12,097 7,035 Annualized net loan charge- offs /average loans 2.09% 1.42% 0.83% Allowance for loan losses/ total loans 1.78% 1.92% 1.91% Allowance for loan losses/ non-performing loans 0.66 x 0.69 x 0.67 x Allowance for loan losses/ non-performing loans and loans past due 90 days or more 0.61 x 0.66 x 0.64 x Quarter Ended ------------- Dec. Sept. 31, 30, Asset quality data 2009 2009 ------------------ ---- ---- Non-performing assets: Non-accrual loans $65,273 $67,355 Renegotiated loans 14,988 15,013 ------ ------ Total non-performing loans 80,261 82,368 Other real estate and repossessed assets 8,691 8,665 ----- ----- Total non-performing assets $88,952 $91,033 Loans past due 90 days or more and accruing 5,275 7,769 Total non-performing assets and loans past due 90 days or more $94,227 $98,802 ======= ======= Loans past due 30-89 days $25,396 $24,833 ======= ======= Loans past due 90 days or more and accruing / total loans 0.15% 0.22% Non-performing loans/total loans 2.31 2.35 ---- ---- Non-performing loans and loans past due 90 days or more/total loans 2.46 2.57 ==== ==== Non-performing assets/total loans, other real estate and repossessed assets 2.56 2.59 Loans past due 30-89 days/total loans 0.73 0.71 Allowance for loan losses ------------------------- Allowance for loan losses $61,160 $60,755 Provision for loan losses 14,395 16,200 Net loan and deposit account overdraft charge-offs 13,990 14,017 Annualized net loan charge-offs /average loans 1.59% 1.58% Allowance for loan losses/total loans 1.76% 1.74% Allowance for loan losses/non-performing loans 0.76 x 0.74 x Allowance for loan losses/non-performing loans and loans past due 90 days or more 0.72 x 0.67 x Quarter Ended ------------- Sept. Dec. Sept. 30, June 30, Mar. 31, 31, 30, 2010 2010 2010 2009 2009 ---- ---- ---- ---- ---- Capital ratios -------------- Tier I leverage capital 8.17% 8.13% 8.07% 7.86% 7.55% Tier I risk-based capital 11.64 11.61 11.42 11.12 10.95 Total risk-based capital 12.89 12.87 12.68 12.37 12.21 Shareholders' equity to assets 11.23 11.12 11.05 10.86 11.37 Tangible equity to tangible assets (1) 6.34 6.27 6.06 5.88 5.75 (1) See non-GAAP financial measures for additional information relating to the calculation of this item. NON-GAAP FINANCIAL MEASURES --------------------------- The following non-GAAP financial measures used by WesBanco provide information useful to investors in understanding WesBanco's operating performance and trends, and facilitate comparisons with the performance of WesBanco's peers. The following tables summarize the non-GAAP financial measures derived from amounts reported in WesBanco's financial statements. Three Months Ended ------------------ Sept. 30, June 30, Mar. 31, (unaudited, dollars in thousands) 2010 2010 2010 ---- ---- ---- Return on average tangible equity: Net income (annualized) $36,313 $33,043 $32,081 Plus: amortization of intangibles (annualized) (1) 1,743 1,787 1,842 ----- ----- ----- Net income before amortization of intangibles (annualized) 38,056 34,830 33,923 ------ ------ ------ Average total shareholder's equity 608,932 604,334 598,022 Less: average goodwill and other intangibles (286,537) (287,221) (287,908) -------- -------- -------- Average tangible equity 322,395 317,113 310,114 ------- ------- ------- Return on average tangible equity 11.80% 10.98% 10.94% ===== ===== ===== Three Months Ended ------------------ Dec. 31, Sept. 30, (unaudited, dollars in thousands) 2009 2009 ---- ---- Return on average tangible equity: Net income (annualized) $28,949 $21,591 Plus: amortization of intangibles (annualized) (1) 2,050 2,079 ----- ----- Net income before amortization of intangibles (annualized) 30,999 23,670 ------ ------ Average total shareholder's equity 596,747 643,700 Less: average goodwill and other intangibles (288,661) (289,470) -------- -------- Average tangible equity 308,086 354,230 ------- ------- Return on average tangible equity 10.06% 6.68% ===== ==== Year to Date ------------ Sept. 30, (unaudited, dollars in thousands) 2010 2009 ---- ---- Return on average tangible equity: Net income (annualized) $33,828 $22,242 Plus: amortization of intangibles (annualized) (1) 1,791 2,012 ----- ----- Net income before amortization of intangibles (annualized) 35,619 24,254 ------ ------ Average total shareholder's equity 603,802 656,633 Less: average goodwill and other intangibles (287,217) (282,380) -------- -------- Average tangible equity 316,585 374,253 ------- ------- Return on average tangible equity 11.25% 6.48% ===== ==== Period End ---------- Sept. 30, June 30, Mar. 31, 2010 2010 2010 ---- ---- ---- Tangible book value: Total shareholders' equity $608,287 $604,714 $596,473 Less: goodwill and other intangible assets (286,228) (286,908) (287,593) -------- -------- -------- Tangible equity 322,059 317,806 308,880 Common shares outstanding 26,586,953 26,586,903 26,567,653 ---------- ---------- ---------- Tangible book value $12.11 $11.95 $11.63 ====== ====== ====== Tangible equity to tangible assets: Total shareholders' equity $608,287 $604,714 $596,473 Less: goodwill and other intangible assets (286,228) (286,908) (287,593) -------- -------- -------- Tangible equity 322,059 317,806 308,880 Total assets 5,362,623 5,356,261 5,380,441 Less: goodwill and other intangible assets (286,228) (286,908) (287,593) -------- -------- -------- Tangible assets 5,076,395 5,069,353 5,092,848 --------- --------- --------- Tangible equity to tangible assets 6.34% 6.27% 6.06% ==== ==== ==== Period End ---------- Dec. 31, Sept. 30, 2009 2009 ---- ---- Tangible book value: Total shareholders' equity $588,716 $592,335 Less: goodwill and other intangible assets (288,292) (289,087) -------- -------- Tangible equity 300,424 303,248 Common shares outstanding 26,567,653 26,567,653 ---------- ---------- Tangible book value $11.31 $11.41 ====== ====== Tangible equity to tangible assets: Total shareholders' equity $588,716 $592,335 Less: goodwill and other intangible assets (288,292) (289,087) -------- -------- Tangible equity 300,424 303,248 Total assets 5,397,352 5,561,091 Less: goodwill and other intangible assets (288,292) (289,087) -------- -------- Tangible assets 5,109,060 5,272,004 --------- --------- Tangible equity to tangible assets 5.88% 5.75% ==== ==== (1) Tax effected at 35%.
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/
