WHEELING, W.Va., Oct. 18 /PRNewswire-FirstCall/ -- Paul M. Limbert, President and Chief Executive Officer of WesBanco, Inc., (NASDAQ:WSBC) a Wheeling, West Virginia based multi-state bank holding company, today announced earnings for the third quarter and nine months ended September 30, 2006.
Diluted earnings per share for the third quarter ended September 30, 2006 were $0.53 compared to $0.44 for the same period in 2005, an increase of 20.5%, while net income for the third quarter of 2006 increased 17.1% to $11.6 million as compared to $9.9 million for the third quarter of 2005. Highlighting the quarter was continued expansion of the net interest margin as a result of the balance sheet repositioning completed in the second quarter, as well as higher service charges on deposit accounts, increasing non-interest income from the prior year, and reductions in non-interest expense. Return on average assets for the quarter increased to 1.13% from last year's 0.88%, and return on average equity grew to 10.97% from 9.35% in 2005. For the quarter, core operating earnings were the same as reported earnings, and they increased 10.6% as compared to the third quarter of 2005. Core operating diluted earnings per share increased 12.8% to $0.53 in the third quarter of 2006, as compared to $0.47 for the third quarter of 2005.
Diluted earnings per share for the nine months ended September 30, 2006 were $1.30 compared to $1.42 for 2005, while net income for the nine months ended September 30, 2006 decreased 11.8% to $28.4 million as compared to $32.2 million for the same period in 2005. The decrease in year to date net income is primarily attributable to a $4.8 million after-tax loss arising in connection with the balance sheet repositioning completed in the second quarter, which was partially offset by a $1.6 million after-tax gain on the sale of certain branches. On a diluted per share basis, core operating results were unchanged at $1.46 per share for the nine month periods of 2006 and 2005.
"Our net interest margin continued to improve in the third quarter as well as on a year-to-date basis. These improvements resulted from the balance sheet repositioning we completed earlier in the year and our ongoing strategic management of assets and liabilities to continue to achieve profitability in a highly competitive environment with a relatively flat yield curve," stated Mr. Limbert. "The enhancement in our net interest margin along with growth in non-interest income and our continuing focus on reducing operating expenses has enabled us to achieve positive quarterly earnings growth despite challenging market conditions." "Also in the third quarter, we opened a new banking center and closed two existing locations in Barnesville, Ohio as part of our ongoing branch optimization program. Consolidation of these facilities will enhance customer service through the use of upgraded facilities, which will also improve efficiency," said Mr. Limbert.
Highlights for the three and nine month periods ended September 30, 2006:
* Net interest income for the three and nine months ended September 30,
2006 decreased $1.9 million or 5.8% and $7.4 million or 7.4%,
respectively, compared to the same periods in 2005 as a result of the
intentional repositioning of the balance sheet completed in the second
quarter. The net interest margin for the third quarter and nine months
ended September 30, 2006 was 3.56% and 3.50%, respectively, compared to
3.46% and 3.49% for the same periods in 2005. On a linked quarter
basis, the net interest margin increased by two basis points and total
net interest income was flat. * Non-interest income in the third quarter increased $1.8 million or 18.6%
as compared to the third quarter of 2005. Non-interest income for the
nine months ended September 30, 2006, net of the $8.0 million loss
associated with WesBanco's balance sheet repositioning and the gain of
$2.6 million on sale of the Ritchie County branches in the first
quarter, increased $5.6 million or 18.9% as compared to the nine months
ended September 30, 2005. The increase in both periods was primarily
driven by an increase in activity charges on deposit accounts resulting
from new fee-related programs introduced in the fourth quarter of 2005,
and, for the nine month period, approximately $1.0 million of gains on
the early call of certain Federal Home Loan Bank advances in the second
quarter of 2006. Also contributing were higher trust fees as well as
increases in debit card activity-related fees. * The provision for loan losses increased $0.1 million and $1.3 million
over the third quarter and nine months ended September 30, 2005,
respectively, primarily due to higher net losses and general economic
conditions that increased the inherent level of risk in the loan
portfolio. Net charge-offs to average loans, on an annualized basis,
were 0.16% for the third quarter of 2006 as compared to 0.27% for the
third quarter of 2005 and 0.54% for the second quarter of 2006. Net
charge-offs for the nine months ended September 30, 2006 were 0.30% as
compared to 0.22% for the same period in 2005. The increase in year-to-
date net losses is attributable to a $3.1 million charge off on a
commercial loan participation in the second quarter, of which $0.5
million was recovered in the third quarter. The allowance for loan
losses as a percentage of total loans was 1.08% at September 30, 2006,
down from 1.11% at September 30, 2005, but up from 1.05% at both June
30, 2006 and December 31, 2005. * Non-interest expense decreased $1.7 million or 6.3% and $2.6 million or
3.1% compared to the third quarter and nine months ended September 30,
2005. The decrease in both periods was due to a reduction in full-time
equivalent employees, a reduction in restructuring and merger-related
expenses from the 2005 acquisition of Winton Financial Corporation and a
$1.0 million charge in the third quarter of 2005 relating to the
restructuring of certain bank operations. These decreases were
partially offset by an increase in marketing expenses associated with
WesBanco's efforts to acquire new accounts and customers. Marketing
expense was the only major operating expense category to experience a
significant increase, up 40.5% to $0.9 million in the third quarter. Year-to-date marketing expense increased 48.2% to $3.9 million. Salaries and employee benefits for the quarter were down 6.2% to $13.5
million from last year's $14.4 million, and on a year-to-date basis,
decreased $2.6 million or 6.0% from $42.8 million to $40.3 million. Full-time equivalent employees at September 30, 2006 were 1,191 compared
to 1,254 at September 30, 2005. * The provision for income taxes decreased $0.1 million or 4.4% and $2.1
million or 24.1% for the third quarter and nine months ended September
30, 2006 compared to the same periods in 2005 due to a decrease in year-
to-date pre-tax income. The effective tax rate was 19.2% for the nine
months ended September 30, 2006 compared to 21.6% for the same period in
2005. The effective tax rate for the year is expected to range from
19.4% to 20.0%, depending upon the taxable income earned during the
year. * Total loans at September 30, 2006 decreased $16.6 million and $21.7
million compared to September 30, 2005 and December 31, 2005,
respectively. The decrease in total loans was primarily due to the sale
in the first quarter of $6.0 million of under-performing commercial real
estate loans and $19.3 million of loans in connection with the sale of
the Ritchie County branches. Loan growth in 2006 was also impacted by
an intentional reduction in the retention of fixed rate residential real
estate loans in the portfolio and a focus on obtaining appropriate
interest rate margins on new loans in a highly competitive lending
environment. Although total loans decreased as of September 30, 2006,
commercial loans were up $41.7 million and $27.7 million, respectively,
as compared to September 30, 2005 and December 31, 2005, with the
increase primarily attributable to higher commercial real estate
balances. * Total deposits as of September 30, 2006 decreased by $19.5 million and
$8.5 million as compared to September 30, 2005 and December 31, 2005,
respectively. The decrease in deposits was due to the sale in the first
quarter of approximately $37.8 million of deposits in connection with
the sale of the Ritchie County branches. Money market accounts
decreased as customers in a rising rate environment turned to short- and
intermediate-term certificates of deposit, non-bank money market funds
and higher rates offered by competitors. WesBanco experienced an
increase of 5.9% in certificates of deposit and 9.0% in non-interest
bearing demand deposit accounts as of September 30, 2006 compared to
last year. The increase in the demand deposit accounts was due to
concerted marketing campaigns that resulted in the opening of a
significant number of new retail accounts. * FHLB and other short-term borrowings, decreased from $857.0 million as
of December 31, 2005, prior to the balance sheet repositioning completed
in the second quarter, to $532.4 million, a $324.6 million or 37.9%
reduction. These borrowings as a percent of total assets decreased to
13.0% from December's 19.4%. Likewise, total investment securities have
dropped since year-end from $992.6 million to $716.2 million at quarter-
end, a 27.8% decrease, primarily due to the repositioning and sales from
the available-for-sale portfolio, as well as continued maturities and
pay-downs. In the current interest rate environment WesBanco has decided
that supporting further leverage on its balance sheet with wholesale
borrowings does not make fundamental economic sense, despite some
associated give-up in short-term earnings. A benefit of the downsizing
has been increased tangible and other capital ratios, despite an ongoing
share repurchase plan, with tangible leverage increasing from 6.28% at
year-end to 6.93% at September 30, 2006. The downsizing has also
reduced the company's liability sensitivity to rising rates. * For the quarter ended September 30, 2006, WesBanco repurchased a total
of 231,647 shares and on a year to date basis for 2006 a total of
429,263 shares were repurchased. The average price paid on a year to
date basis for 2006 was $29.73 per share. WesBanco has 708,898 shares
remaining for repurchase under the current one million share repurchase
plan approved by the board of directors in January 2006.
WesBanco is a multi-state bank holding company with total assets of approximately $4.1 billion, operating through 78 banking offices, one loan production office, and 108 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 2005 Annual Report on Form 10-K, as well as the Form 10-Q for the prior quarter ended June 30, 2006 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 2005 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; adverse decisions of federal and state courts; 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
September 30,
Statement of income 2006 2005 % Change Interest income $56,942 $56,231 1.26%
Interest expense 26,233 23,643 10.95%
Net interest income 30,709 32,588 (5.77%)
Provision for loan losses 2,268 2,141 5.93%
Net interest income after
provision for loan losses 28,441 30,447 (6.59%)
Non-interest income
Trust fees 3,711 3,541 4.80%
Service charges on deposits 4,437 2,834 56.56%
Net securities gains/(losses) 17 141 (87.94%)
Other income 3,492 3,324 5.05%
Gains on early extinguishment of
debt 17 - 100.00%
Total non-interest income 11,674 9,840 18.64%
Non-interest expense
Salaries and employee benefits 13,529 14,420 (6.18%)
Net occupancy 1,688 1,844 (8.46%)
Equipment 1,961 2,018 (2.82%)
Amortization of intangible assets 628 665 (5.56%)
Marketing expense 943 671 40.54%
Restructuring and merger-related
expenses (1) - 967 (100.00%)
Other operating expenses 7,180 7,078 1.44%
Total non-interest expense 25,929 27,663 (6.27%)
Income before provision for
income taxes 14,186 12,624 12.37%
Provision for income taxes 2,632 2,754 (4.43%)
Net income $11,554 $9,870 17.06% Taxable equivalent net interest
income $32,806 $35,111 (6.57%) Per common share data
Net income per common share - basic $0.53 $0.44 20.45%
Net income per common share - diluted $0.53 $0.44 20.45%
Dividends declared $0.265 $0.26 1.92%
Book value (period end)
Tangible book value (period end)
Average shares outstanding - basic 21,700,328 22,260,541 (2.52%)
Average shares outstanding - diluted 21,746,255 22,320,674 (2.57%)
Period end shares outstanding Selected ratios
Return on average assets 1.13% 0.88% 28.06%
Return on average equity 10.97% 9.35% 17.34%
Yield on earning assets (2) 6.40% 5.78% 10.73%
Cost of interest bearing liabilities 3.21% 2.59% 23.94%
Net interest spread (2) 3.19% 3.19% 0.00%
Net interest margin (2) 3.56% 3.46% 2.89%
Efficiency (2) 58.30% 61.54% (5.26%)
Average loans to average deposits 98.40% 95.80% 2.71%
Annualized net loan charge-
offs/average loans 0.16% 0.27% (39.83%)
Effective income tax rate 18.55% 21.82% 6.30%
WESBANCO, INC. Consolidated Selected Financial Highlights
(unaudited, dollars in thousands, except per share amounts) For the Nine Months Ended
September 30,
Statement of income 2006 2005 % Change Interest income $169,383 $167,649 1.03%
Interest expense 76,827 67,692 13.49%
Net interest income 92,556 99,957 (7.40%)
Provision for loan losses 7,171 5,903 21.48%
Net interest income after
provision for loan losses 85,385 94,054 (9.22%)
Non-interest income
Trust fees 11,306 10,767 5.01%
Service charges on deposits 12,413 8,019 54.79%
Net securities gains/(losses) (7,833) 1,962 (499.24%)
Other income 12,528 8,563 46.30%
Gains on early extinguishment of
debt 1,064 - 100.00%
Total non-interest income 29,478 29,311 0.57%
Non-interest expense
Salaries and employee benefits 40,260 42,844 (6.03%)
Net occupancy 5,567 5,391 3.26%
Equipment 5,984 6,412 (6.67%)
Amortization of intangible assets 1,894 2,013 (5.91%)
Marketing expense 3,853 2,600 48.19%
Restructuring and merger-related
expenses (1) 540 1,530 (64.71%)
Other operating expenses 21,631 21,495 0.63%
Total non-interest expense 79,729 82,285 (3.11%)
Income before provision for
income taxes 35,134 41,080 (14.47%)
Provision for income taxes 6,735 8,872 (24.09%)
Net income $28,399 $32,208 (11.83%) Taxable equivalent net interest
income $99,155 $107,583 (7.83%) Per common share data
Net income per common share - basic $1.30 $1.42 (8.45%)
Net income per common share - diluted $1.30 $1.42 (8.45%)
Dividends declared $0.795 $0.78 1.92%
Book value (period end) $19.45 $18.78 3.57%
Tangible book value (period end) $12.69 $12.12 4.70%
Average shares outstanding - basic 21,843,203 22,610,703 (3.39%)
Average shares outstanding - diluted 21,896,265 22,664,922 (3.39%)
Period end shares outstanding 21,551,703 22,156,096 (2.73%) Selected ratios
Return on average assets 0.91% 0.95% (4.51%)
Return on average equity 9.11% 10.14% (10.18%)
Yield on earning assets (2) 6.21% 5.70% 8.95%
Cost of interest bearing liabilities 3.06% 2.45% 24.90%
Net interest spread (2) 3.15% 3.25% (3.08%)
Net interest margin (2) 3.50% 3.49% 0.29%
Efficiency (2) 61.98% 60.11% 3.11%
Average loans to average deposits 97.98% 96.20% 1.85%
Annualized net loan charge-
offs/average loans 0.30% 0.22% 34.40%
Effective income tax rate 19.17% 21.60% 13.08% (1) Restructuring costs are associated with a reduction in WesBanco's
workforce through layoffs. Merger-related expenses are primarily
related to the acquisitions of Winton Financial Corporation and
Western Ohio Financial Corporation. (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 sheet (period end) % Change
September 30,
2006
September 30, December 31, to Dec. 31,
Assets 2006 2005 % Change 2005 2005
Cash and due
from banks $98,657 $79,638 23.88% $108,176 (8.80) %
Due from
banks -
Interest
bearing 1,744 1,622 7.52 2,432 (28.29) Securities 716,210 1,079,910 (33.68) 992,564 (27.84) Loans:
Loans held
for sale 4,135 5,563 (25.67) 28,803 (85.64) Commercial and
commercial
real
estate 1,563,238 1,521,570 2.74 1,535,503 1.81 Residential
real
estate 908,171 944,718 (3.87) 929,823 (2.33) Consumer and
home equity 443,597 463,915 (4.38) 446,751 (0.71) Total
loans 2,919,141 2,935,766 (0.57) 2,940,880 (0.74) Allowance
for loan
losses (31,669) (32,497) (2.55) (30,957) 2.30 Net loans 2,887,472 2,903,269 (0.54) 2,909,923 (0.77) Premises
and
equipment,
net 66,010 63,365 4.17 64,707 2.01 Goodwill 137,258 136,697 0.41 137,258 - Core deposit
intangible,
net 8,506 11,054 (23.05) 10,400 (18.21) Other assets 180,230 146,880 22.71 196,655 (8.35) Total
Assets $4,096,087 $4,422,435 (7.38)% $4,422,115 (7.37)% Liabilities
and
Shareholders'
Equity
Non-interest
bearing
demand
deposits $388,642 $356,705 8.95% $392,116 (0.89)%
Interest
bearing
demand
deposits 344,986 330,203 4.48 325,582 5.96 Money
market
accounts 354,659 481,999 (26.42) 444,071 (20.13) Savings
deposits 452,382 473,351 (4.43) 462,601 (2.21) Certificates
of deposit 1,479,113 1,397,045 5.87 1,403,954 5.35 Total
deposits 3,019,782 3,039,303 (0.64) 3,028,324 (0.28) Federal
Home
Loan
Bank
borrowings 371,910 636,634 (41.58) 612,693 (39.30) Short-term
borrowings 160,538 207,665 (22.69) 244,301 (34.29) Junior
subordinated
debt 87,638 87,638 - 87,638 - Other
liabilities 36,962 35,020 5.55 33,929 8.94 Shareholders'
equity 419,257 416,175 0.74 415,230 0.97 Total
Liabilities
and
Shareholders'
Equity $4,096,087 $4,422,435 (7.38)% $4,422,115 (7.37) % Average balance sheet and
net interest margin analysis Three months ended September 30,
2006 2005
Average Average Average Average
Assets Balance Rate Balance Rate Due from banks - interest bearing $2,198 1.99% $2,413 1.91%
Loans, net of unearned income 2,908,500 6.61% 2,931,165 6.08%
Securities:
Taxable 371,065 4.61% 641,628 3.95%
Tax-exempt 357,080 6.71% 420,027 6.65%
Total securities 728,145 5.63% 1,061,655 5.03%
Federal funds sold - 0.00% 1,522 3.42%
Other earning assets (1) 26,219 5.02% 46,875 3.60%
Total earning assets 3,665,062 6.40% 4,043,630 5.78%
Other assets 402,458 401,464
Total Assets $4,067,520 $4,445,094 Liabilities and Shareholders'
Equity
Interest bearing demand deposits $341,695 1.20% $328,441 0.59%
Money market accounts 363,256 2.20% 499,088 1.95%
Savings deposits 459,463 1.36% 470,014 0.83%
Certificates of deposit 1,416,605 4.02% 1,390,833 3.18%
Total interest bearing deposits 2,581,019 2.92% 2,688,376 2.23%
Federal Home Loan Bank borrowings 411,833 3.80% 648,272 3.44%
Short-term borrowings 157,122 4.78% 197,049 3.21%
Junior subordinated debt 87,638 6.45% 87,638 6.04%
Total interest bearing
liabilities 3,237,612 3.21% 3,621,335 2.59%
Non-interest bearing demand
deposits 374,798 371,412
Other liabilities 37,283 33,339
Shareholders' equity 417,827 419,008 Total Liabilities and Shareholders'
Equity $4,067,520 $4,445,094 Taxable equivalent net interest
spread 3.19% 3.19%
Taxable equivalent net interest
margin 3.56% 3.46%
Average balance sheet and
net interest margin analysis Nine months ended September 30,
2006 2005
Average Average Average Average
Assets Balance Rate Balance Rate Due from banks - interest bearing $2,249 2.02% $4,577 1.64%
Loans, net of unearned income 2,920,565 6.46% 2,952,946 5.99%
Securities:
Taxable 451,712 4.33% 684,657 3.94%
Tax-exempt 376,239 6.68% 419,390 6.72%
Total securities 827,951 5.39% 1,104,047 4.99%
Federal funds sold 2,418 4.74% 1,729 2.85%
Other earning assets (1) 33,483 4.79% 47,925 3.81%
Total earning assets 3,786,666 6.21% 4,111,224 5.70%
Other assets 398,796 403,849
Total Assets $4,185,462 $4,515,073 Liabilities and Shareholders'
Equity
Interest bearing demand deposits $338,345 1.00% $329,723 0.47%
Money market accounts 392,488 2.15% 543,968 1.88%
Savings deposits 463,567 1.25% 454,725 0.67%
Certificates of deposit 1,409,089 3.81% 1,373,515 3.03%
Total interest bearing deposits 2,603,489 2.74% 2,701,931 2.09%
Federal Home Loan Bank borrowings 494,230 3.68% 687,471 3.38%
Short-term borrowings 169,860 4.45% 216,065 2.70%
Junior subordinated debt 87,638 6.37% 83,333 5.93%
Total interest bearing
liabilities 3,355,217 3.06% 3,688,800 2.45%
Non-interest bearing demand
deposits 377,219 367,787
Other liabilities 36,155 34,000
Shareholders' equity 416,871 424,486 Total Liabilities and Shareholders'
Equity $4,185,462 $4,515,073 Taxable equivalent net interest
spread 3.15% 3.25%
Taxable equivalent net interest
margin 3.50% 3.49% WESBANCO, INC. Consolidated Selected Financial Highlights
(unaudited, dollars in thousands, except per share amounts) Quarter Ended
Sept. 30, June 30, March 31,
Statement of income 2006 2006 2006 Interest income $56,942 $55,994 $56,447
Interest expense 26,233 25,130 25,464
Net interest income 30,709 30,864 30,983
Provision for loan losses 2,268 2,263 2,640
Net interest income after
provision for loan losses 28,441 28,601 28,343
Non-interest income
Trust fees 3,711 3,537 4,058
Service charges on deposits 4,437 4,179 3,797
Net securities gains 17 92 (7,942)
Other income 3,492 3,535 5,501
Gains on early extinguishment of
debt 17 1,047 -
Total non-interest income 11,674 12,390 5,414
Non-interest expense
Salaries and employee benefits 13,529 13,315 13,416
Net occupancy 1,688 1,866 2,013
Equipment 1,961 1,993 2,030
Core deposit intangibles 628 633 633
Marketing expense 943 1,837 1,073
Restructuring and merger-related
expenses (1) - - 540
Other operating expenses 7,180 7,344 7,107
Total non-interest expense 25,929 26,988 26,812
Income before provision for
income taxes 14,186 14,003 6,945
Provision for income taxes 2,632 2,742 1,361
Net income $11,554 $11,261 $5,584 Taxable equivalent net interest income $32,806 $33,046 $33,303 Per common share data
Net income per common share - basic $0.53 $0.52 $0.25
Net income per common share - diluted $0.53 $0.52 $0.25
Dividends declared $0.265 $0.265 $0.265
Book value (period end) $19.45 $19.13 $18.98
Tangible book value (period end) $12.69 $12.41 $12.28
Average shares outstanding - basic 21,700,328 21,893,943 21,937,948
Average shares outstanding - diluted 21,746,255 21,946,829 21,998,750
Period end shares outstanding 21,551,703 21,783,350 21,925,266
Full time equivalent employees 1,191 1,176 1,165 Selected ratios
Return on average assets 1.13% 1.09% 0.52%
Return on average equity 10.97% 10.83% 5.45%
Yield on earning assets (2) 6.40% 6.23% 6.01%
Cost of interest bearing liabilities 3.21% 3.05% 2.93%
Net interest spread (2) 3.19% 3.18% 3.08%
Net interest margin (2) 3.56% 3.54% 3.40%
Efficiency (2) 58.30% 59.40% 69.25%
Average loans to average deposits 98.40% 97.82% 97.78%
Trust Assets, market value at period
end $2,873,159 $2,797,321 $2,871,129 WESBANCO, INC. Consolidated Selected Financial Highlights
(unaudited, dollars in thousands, except per share amounts) Quarter Ended
Dec. 31, Sept. 30,
Statement of income 2005 2005 Interest income $57,096 $56,231
Interest expense 24,742 23,643
Net interest income 32,354 32,588
Provision for loan losses 2,142 2,141
Net interest income after
provision for
loan losses 30,212 30,447
Non-interest income
Trust fees 3,538 3,541
Service charges on deposits 3,515 2,834
Net securities gains 59 141
Other income 2,710 3,324
Gains on early extinguishment of
debt - -
Total non-interest income 9,822 9,840
Non-interest expense
Salaries and employee benefits 13,446 14,420
Net occupancy 1,776 1,844
Equipment 1,969 2,018
Core deposit intangibles 654 665
Marketing expense 1,935 671
Restructuring and merger-related
expenses (1) - 967
Other operating expenses 6,855 7,078
Total non-interest expense 26,635 27,663
Income before provision for
income taxes 13,399 12,624
Provision for income taxes 2,850 2,754
Net income $10,549 $9,870 Taxable equivalent net interest
income $34,786 $35,111 Per common share data
Net income per common share - basic $0.48 $0.44
Net income per common share - diluted $0.48 $0.44
Dividends declared $0.26 $0.26
Book value (period end) $18.91 $18.78
Tangible book value (period end) $12.19 $12.12
Average shares outstanding - basic 22,070,906 22,260,541
Average shares outstanding - diluted 22,127,684 22,320,674
Period end shares outstanding 21,955,359 22,156,096
Full time equivalent employees 1,200 1,254 Selected ratios
Return on average assets 0.95% 0.88%
Return on average equity 10.09% 9.35%
Yield on earning assets (2) 5.88% 5.78%
Cost of interest bearing liabilities 2.74% 2.59%
Net interest spread (2) 3.14% 3.19%
Net interest margin (2) 3.45% 3.46%
Efficiency (2) 59.71% 61.54%
Average loans to average deposits 96.92% 95.80%
Trust Assets, market value at period
end $2,599,463 $2,598,993 (1) Restructuring costs are associated with a reduction in WesBanco's
workforce through layoffs. Merger-related expenses are primarily
related to the acquisitions of Winton Financial Corporation and
Western Ohio Financial Corporation. (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)
Quarter Ended
Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
Asset quality data 2006 2006 2006 2005 2005
Non-performing assets:
Non-accrual loans $10,356 $13,361 $14,129 $9,920 $9,812
Renegotiated loans - - - - -
Total non-performing
loans 10,356 13,361 14,129 9,920 9,812
Other real estate and
repossessed assets 4,109 3,263 2,692 1,868 1,929
Total non-performing
loans and assets $14,465 $16,624 $16,821 $11,788 $11,741
Loans past due 90 days
or more $11,594 $9,784 $6,528 $10,054 $8,411 Non-performing
assets/total assets 0.35 % 0.41 % 0.39 % 0.27 % 0.27 %
Non-performing
assets/total loans,
other real estate and
repossessed assets 0.49 % 0.57 % 0.57 % 0.40 % 0.40 %
Non-performing
loans/total loans 0.35 % 0.46 % 0.48 % 0.34 % 0.33 %
Non-performing loans
and loans past due 90
days or more/total
loans 0.75 % 0.79 % 0.70 % 0.68 % 0.62 %
Non-performing loans,
loans past due 90 days
and other real estate
owned/total loans
and other real
estate owned 0.87 % 0.89 % 0.79 % 0.74 % 0.69 % Allowance for loan
losses
Allowance for loan
losses $31,669 $30,592 $32,291 $30,957 $32,497
Provision for loan
losses 2,268 2,263 2,640 2,142 2,141
Net loan charge-offs 1,191 3,962 1,306 3,682 1,993
Annualized net loan
charge-offs /average
loans 0.16 % 0.54 % 0.18 % 0.50 % 0.27 %
Allowance for loan
losses/total loans 1.08 % 1.05 % 1.10 % 1.05 % 1.11 %
Allowance for loan
losses/non-performing
loans 3.06 x 2.29 x 2.29 x 3.12 x 3.31 x
Allowance for loan
losses/non-performing
loans and past due 90
days or more 1.44 x 1.32 x 1.56 x 1.55 x 1.78 x Capital ratios
Tier I leverage capital 9.23 % 9.06 % 8.56 % 8.46 % 8.38 %
Tier I risk-based
capital 12.30 % 12.32 % 11.98 % 11.94 % 11.92 %
Total risk-based
capital 13.38 % 13.37 % 13.06 % 12.97 % 13.01 %
Shareholders' equity to
assets 10.27 % 10.07 % 9.55 % 9.42 % 9.43 %
Tangible equity to
tangible assets (1) 6.93 % 6.77 % 6.38 % 6.28 % 6.31 % (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 Months For the Nine Months
Ended Ended
September 30, September 30,
2006 2005 2006 2005 Net income $11,554 $9,870 $28,399 $32,208
Add: restructuring & merger-related
expenses, net of tax (1) - 580 324 918
Add: other-than-temporary
impairment losses, net of tax (1) - - 4,829 -
Subtract: gain on branch sale, net
of tax (1) - - (1,571) -
Core operating earnings $11,554 $10,450 $31,981 $33,126
Net income per common share (3) $0.53 $0.44 $1.30 $1.42
Effects of restructuring & merger-
related expenses, net of tax (1) - 0.03 0.01 (4) 0.04
Effects of other-than-temporary
impairment losses, net of tax (1) - - 0.22 -
Effects of gain on branch sale, net
of tax (1) - - (0.07) -
Core operating earnings per common
share (3) $0.53 $0.47 $1.46 $1.46 Selected ratios
Return on average assets 1.13% 0.88% 0.91% 0.95%
Effects of restructuring & merger-
related expenses, net of tax (1) 0.00% 0.05% 0.01% 0.03%
Effects of other-than-temporary
impairment losses, net of tax (1) 0.00% 0.00% 0.12% 0.00%
Effects of gain on branch sale, net
of tax (1) 0.00% 0.00% (0.04%) 0.00%
Core operating return on average
assets 1.13% 0.93% 1.00% 0.98%
Return on average equity 10.97% 9.35% 9.11% 10.14%
Effects of restructuring & merger-
related expenses, net of tax (1) 0.00% 0.54% 0.08% 0.32%
Effects of other-than-temporary
impairment losses, net of tax (1) 0.00% 0.00% 1.16% 0.00%
Effects of gain on branch sale, net
of tax (1) 0.00% 0.00% (0.38%) 0.00%
Core operating return on average
equity 10.97% 9.89% 9.97% 10.46% Efficiency ratio (2) 58.30% 61.54% 61.98% 60.11%
Effects of restructuring & merger-
related expenses, net of tax (1) 0.00% (2.15%) (0.44%) (1.12%)
Effects of other-than-temporary
impairment losses 0.00% 0.00% (3.82%) 0.00%
Effects of gain on branch sale 0.00% 0.00% 1.35% 0.00%
Core operating efficiency ratio 58.30% 59.39% 59.07% 58.99% (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. (3) The dilutive effect from stock options was immaterial and accordingly,
basic and diluted earnings per share are the same. (4) Previously reported at $0.02. Change due to rounding. DATASOURCE: WesBanco, Inc.
CONTACT: Paul M. Limbert, President and Chief Executive Officer, or Robert H. Young, Executive Vice President and Chief Financial Officer, +1-304-234-9000, both of WesBanco, Inc.
Web site: http://www.wesbanco.com/
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