-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, S4QsrwtIGSyoWFDWCxCm5ldYN3dR5+Y1MetJu3dpfwJiZZpipZ1zgHdVrY/zN2uU f6ThFlSIZDIspT706wPiEw== 0000203596-03-000001.txt : 20030129 0000203596-03-000001.hdr.sgml : 20030129 20030129165322 ACCESSION NUMBER: 0000203596-03-000001 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030123 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20030129 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WESBANCO INC CENTRAL INDEX KEY: 0000203596 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 550571723 STATE OF INCORPORATION: WV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-08467 FILM NUMBER: 03530290 BUSINESS ADDRESS: STREET 1: 1 BANK PLAZA CITY: WHEELING STATE: WV ZIP: 26003 BUSINESS PHONE: 3042349000 MAIL ADDRESS: STREET 1: ONE BANK PLZ CITY: WHEELING STATE: WV ZIP: 26003 8-K 1 fin8k.txt SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Form 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) January 23, 2003 ---------------- WesBanco, Inc. ------------------------------------------------------ (Exact name of registrant as specified in its charter) West Virginia 0-8467 55-0571723 - ---------------------------- ---------- ------------------- (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 1 Bank Plaza, Wheeling, WV 26003 - ---------------------------------------- --------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (304) 234-9000 -------------- Former name or former address, if changed since last report Not Applicable -------------- ITEM 5. Other Events Press release dated January 23, 2003, WesBanco, Inc. announced earnings for the fourth quarter and full year 2002. ITEM 7. Financials and Exhibits Exhibits -------- 99 - Press release dated January 23, 2003. Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. WesBanco, Inc. ------------- (Registrant) January 29, 2002 /s/ Paul M. Limbert - ---------------- ----------------------------- Date Paul M. Limbert President & Chief Executive Officer EX-99 3 earnings.txt EXHIBIT 99 ---------- NEWS FOR IMMEDIATE RELEASE January 23, 2003 For Further Information Contact: Paul M. Limbert President & CEO or Robert H. Young Executive VP & CFO (304) 234-9000 NASDAQ Trading Symbol: WSBC Website: www.wesbanco.com WesBanco Announces Record Fourth Quarter and 2002 Earnings Per Share Wheeling, WV... Paul M. Limbert, President & CEO of WesBanco, Inc., a Wheeling, West Virginia based multi-state bank holding company, today announced record earnings for the fourth quarter and the year ended December 31, 2002. Mr. Limbert noted that WesBanco's net income for the fourth quarter of 2002 increased 25.1% to $9.1 million compared to $7.3 million for the corresponding period in 2001. Earnings per share increased 7.3% to $0.44 compared to $0.41 for the fourth quarter of 2001. For the year ended December 31, 2002, net income increased 20.1% to $34.8 million versus $29.0 million. Earnings per share increased 6.3% to $1.70 for the year compared to $1.60 for 2001. Return on average assets was 1.13% for the year ended December 31, 2002, compared to 1.21% in 2001, and return on average equity was 10.95% and 11.28%, respectively. The results for 2002 reflect the acquisition of American Bancorporation ("American") on March 1, 2002. Excluding the impact of certain adjusting items, primarily acquisition-related expenses, net securities gains, asset disposal losses, and goodwill amortization in 2001, core earnings per share would have been $0.45 or $9.3 million for the fourth quarter of 2002 and $1.74 or $35.6 million for the year ended December 31, 2002, compared to $0.41 or $7.4 million and $1.64 or $29.7 million for the same periods in 2001, respectively. "I am very pleased with the solid earnings performance for the fourth quarter of 2002 and for the full year. Despite 2002's challenging economic conditions and the current interest rate environment, we increased our core earnings per share 6% and remain focused on our financial objective of earnings per share growth," said Paul M. Limbert, President and Chief Executive Officer. "WesBanco's shareholders were rewarded with a total return on WesBanco common stock of 15.1% for 2002, including an excellent dividend yield approximating 4.0%. We continue to see the benefits of the efficiencies gained in the American acquisition. In 2003, we will continue expanding our services in the new market areas of Columbus, Ohio and southwestern Pennsylvania, as well as exploring new products and services for our existing markets. However, we also expect additional net interest margin compression for the first part of the year or until interest rates begin to rise." Taxable equivalent net interest income increased $4.5 million or 18.4% for the fourth quarter of 2002 and $19.1 million or 20.5% for the year ended December 31, 2002 compared to the corresponding periods in 2001. The increase resulted primarily from earning asset growth related to the acquisition of American. For the fourth quarter and the year ended December 31, 2002, average earning assets increased $742.0 million or 32.4% and $619.6 million or 27.7%, respectively, compared to the corresponding periods in 2001. The increase in net interest income due to earning asset growth was partially offset by a decrease in the net interest margin in 2002. For the fourth quarter and the year ended December 31, 2002 the net interest margin was 3.80% and 3.93%, respectively, as compared to 4.26% and 4.17%, respectively, for the corresponding periods in 2001. The margin decrease resulted from a combination of factors, including lower-margin acquired net assets of American, rate compression between loan and deposit products, commercial and residential mortgage refinancing at historically low interest rates, as well as the continued run off in higher-yielding but less profitable indirect automobile lending and reduced commercial loan demand due to uncertain economic conditions in the business sector. Non-interest income, excluding net securities gains, increased $0.9 million or 14.5% for the fourth quarter of 2002 and $2.7 million or 11.5% for the year ended December 31, 2002, compared to the corresponding periods in 2001. The increase related to growth in deposit activity fees due to the American transaction as well as increases in ATM income and debit card interchange income. The market value of trust assets under management was $2.3 billion at December 31, 2002 compared to $2.8 billion at December 31, 2001 and $2.2 billion at September 30, 2002. Despite the decline in the market value of trust assets due to equity market performance, trust fees increased to $3.2 million or 8.0% for the fourth quarter of 2002 as compared to the same period in 2001. Trust fees remained consistent at $11.5 million for the years ended December 31, 2002 and 2001 with managed mutual fund asset fees and higher estate fees helping to offset the impact of reduced market values. The increase in net securities gains for the year ended December 31, 2002, as compared to the corresponding period in 2001, resulted primarily from sales of U.S. Agency securities to improve liquidity and reposition the securities portfolio primarily after the acquisition of American. The provision for loan losses increased $1.0 million or 58.2% for the fourth quarter of 2002 and $3.4 million or 56.1% for the year ended December 31, 2002, compared to the corresponding periods in 2001, primarily due to the larger size of the total loan portfolio as a result of the American acquisition and higher loan charge-offs. Net loan charge-offs as a percentage of average total loans on an annualized basis for the fourth quarter of 2002 and for the year ended December 31, 2002 were 0.53% and 0.50%, respectively, compared to 0.38% and 0.34% for the corresponding periods in 2001. The allowance for loan losses at December 31, 2002 was $25.1 million, compared to $20.8 million for 2001. The allowance for loan losses as a percentage of total loans was 1.38% at December 31, 2002 and 1.35% at December 31, 2001. The allowance for loan losses provided coverage of 2.48 times non-performing loans, or 1.13 times non-performing loans plus loans past due 90 days or more as of December 31, 2002. Non-performing loans as a percentage of total loans were 0.56% at December 31, 2002 up from 0.51% at December 31, 2001. Non-interest expenses, excluding non-recurring expenses, increased $1.8 million or 10.1% and $9.5 million or 14.7% compared to the fourth quarter and for the year ended December 31, 2001, respectively. The increase was related primarily to expansion of internal operations and personnel and new banking offices acquired in the American transaction. In addition, pension and health care costs were significant contributors to higher employee benefit expense. Due to reduced pension asset values and a lower pension liability discount rate assumption, WesBanco recorded a $3.0 million, net of tax, reduction to shareholders' equity and other comprehensive income as of December 31, 2002. WesBanco anticipates a significantly higher pension expense in 2003 as a result of these factors and a reduced long-term rate of return assumption. Non-recurring expenses of $0.4 million and $2.5 million were recorded in the fourth quarter and for the year ended December 31, 2002, respectively, related to the American acquisition. On January 1, 2002, WesBanco adopted Statement of Financial Accounting Standards No. 142, "Goodwill and Other Intangible Assets", whereby goodwill is not amortized but is subject to annual impairment tests. In accordance with the new standard, no goodwill amortization was recorded for the year ended December 31, 2002. WesBanco recorded $1.3 million in goodwill amortization for 2001. In connection with the American acquisition, WesBanco recorded $0.5 million and $1.8 million in core deposit intangible amortization as a component of non-interest expense for the fourth quarter of 2002 and for the year ended December 31, 2002, respectively. Total goodwill and core deposit intangible amounts recorded in the acquisition amounted to $30.6 million and $11.1 million, respectively. The provision for income taxes decreased $0.4 million or 12.6% as pre-tax income increased $1.5 million or 14.2% for the fourth quarter of 2002, and decreased $1.7 million or 13.5% as pre-tax income increased $4.2 million or 10.1% for the year ended December 31, 2002, as compared to the same periods in 2001. The effective tax rate declined in the fourth quarter of 2002 to 22% from 29%, and to 23% from 30% for the year ended December 31, 2002, compared to the same periods in 2001, respectively. The decline in the effective tax rate resulted primarily from an increase in state and municipal tax-exempt interest both from the acquired American investment securities portfolio and additional purchases. The effective tax rate was also reduced by certain prior years' tax settlements. For 2003, the current anticipated effective tax rate will approximate 20%. Total loans increased $281.2 million or 18.3% for the year ended December 31, 2002. Excluding American, loan balances decreased during the fourth quarter of 2002 and for the year ended December 31, 2002, compared to the corresponding periods in 2001, reflecting declines in consumer and real estate loans, which more than offset a modest increase in commercial loans. The reduction in consumer loans resulted from tightening credit standards for indirect automobile lending, along with the increased competition for these loans from automobile manufacturing finance companies offering low interest rate loans primarily in the new car segment. The decline in real estate loans reflected prepayments of both higher fixed rate and adjustable rate mortgages as customers sought to lock in lower fixed rate loans. Total deposits increased $486.5 million or 25.4% for the year ended December 31, 2002, the majority of which was related to American. Excluding American, deposit growth during the fourth quarter of 2002 and for the year ended December 31, 2002, compared to the corresponding periods in 2001, consisted of increases in money market deposit accounts and interest bearing demand deposits. Customers shifted balances out of certificates of deposits and savings account products in favor of competitively-priced short-term prime rate money market products. Shareholders' equity remained strong for the year ended December 31, 2002, highlighted by a Tier I leverage ratio of 8.53%. Book value increased to $15.89 per share at December 31, 2002 from $14.46 per share at December 31, 2001, and WesBanco's common stock price increased 10.7% from $21.13 at December 31, 2001 to $23.39 at December 31, 2002. As of December 31, 2002, WesBanco had repurchased a total of 508,599 shares through the stock repurchase plan approved by the Board on June 20, 2002. Under the current plan, WesBanco can repurchase up to one million shares of WesBanco common stock representing approximately 4.7% of outstanding shares on the open market. The timing, price and quantity of purchases are at the discretion of WesBanco and the program may be discontinued or suspended at any time. For the year ended December 31, 2002, WesBanco repurchased a total of 928,201 shares through its stock repurchase plans. WesBanco is a multi-state bank holding company presently operating through 72 banking offices in West Virginia, Ohio and Pennsylvania. The American acquisition increased WesBanco's market share in the tri-state area with expansion into new markets in Washington, Pennsylvania and Columbus and Cambridge, Ohio. WesBanco is the second largest bank holding company headquartered in West Virginia. Its banking subsidiary is WesBanco Bank, Inc., headquartered in Wheeling, West Virginia. In addition, WesBanco operates an insurance company, WesBanco Insurance Services, Inc. and a full service broker/dealer, WesBanco Securities, Inc. that also operates Mountaineer Securities, WesBanco's discount brokerage operation. Certain information contained in this Press Release is considered to constitute forward-looking statements with respect to WesBanco and its subsidiaries. The information contained in this press release should be read in conjunction with the company's most recent annual report filed with the Securities and Exchange Commission on Form 10-K for the year ended December 31, 2001 and the quarterly report on Form 10-Q for the quarter ended September 30, 2002. Forward-looking statements 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. Investors are cautioned that such forward-looking statements, which are not historical fact, involve risks and uncertainties. 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 effect of changing regional and national economic conditions; changes in interest rates; credit risks of commercial, real estate, and consumer loan customers and their lending activities; actions of the Federal Reserve Board and Federal Deposit Insurance Corporation, legislative and federal and state regulatory actions and reform, or unanticipated external developments materially impacting WesBanco's operational and financial performance. WesBanco does not assume any duty to update forward-looking statements. ### See attached financial highlights. WESBANCO, INC. Consolidated Selected Financial Highlights December 31, 2002 and 2001 - ------------------------------------------------------------------------------ (unaudited, dollars in thousands) Balance sheet (period end) - -------------------------- September 30, December 31, ------------- -------------------------- Assets 2002 2002 2001 ---------- -------------------------- Cash and due from banks $ 86,612 $ 80,101 $ 81,563 Due from banks - Interest bearing 913 984 712 Federal funds sold 1,900 --- --- Securities 1,160,909 1,193,896 758,470 Loans: Commercial 729,230 759,690 569,193 Real Estate 761,205 748,195 657,784 Personal 330,507 313,000 312,718 ---------- ---------- ---------- Total loans 1,820,942 1,820,885 1,539,695 Allowance for loan losses (24,893) (25,080) (20,786) ---------- ---------- ---------- Net loans 1,796,049 1,795,805 1,518,909 ---------- ---------- ---------- Premises and equipment 56,473 55,725 50,252 Goodwill 46,940 49,520 18,878 Other intangibles 14,868 9,310 --- Other assets 68,097 111,890 45,670 ---------- ---------- ---------- Total Assets $3,232,761 $3,297,231 $2,474,454 ========== ========== ========== Liabilities and Shareholders' Equity Non-interest bearing demand deposits $ 291,479 $ 301,262 $ 244,422 Interest bearing demand deposits 271,912 276,131 245,447 Money market accounts 486,367 508,062 406,727 Savings deposits 365,614 357,290 252,438 Certificates of deposit 974,447 957,211 764,424 ---------- ---------- ---------- Total deposits 2,389,819 2,399,956 1,913,458 ---------- ---------- ---------- Other borrowings 447,047 518,958 279,131 Trust preferred securities 12,650 12,650 --- Other liabilities 52,018 40,496 23,664 Shareholders' equity 331,227 325,171 258,201 ---------- ---------- ---------- Total Liabilities and Shareholders' Equity $3,232,761 $3,297,231 $2,474,454 ========== ========== ========== Average balance sheet and net interest analysis - ----------------------------------------------- For the Three Months Ended For the Year Ended December 31, December 31, --------------------------------------- --------------------------------------- 2002 2001 2002 2001 ------------------ ------------------ ------------------ ------------------ Average Average Average Average Average Average Average Average Volume Rate Volume Rate Volume Rate Volume Rate ------------------ ------------------ ------------------ ------------------ Loans, net of unearned income $1,819,943 6.71% $1,547,775 7.73% $1,789,078 6.98% $1,559,145 8.10% Securities: Taxable 810,819 4.63% 494,279 5.69% 703,308 4.93% 425,006 6.05% Tax-exempt 368,738 7.45% 222,533 7.74% 327,331 7.51% 209,268 7.59% ------------------ ------------------ ------------------ ------------------ Total securities 1,179,557 5.51% 716,812 6.33% 1,030,639 5.75% 634,274 6.56% Federal funds sold 31,694 1.55% 24,571 2.28% 35,683 1.69% 42,421 3.98% ------------------ ------------------ ------------------ ------------------ Total earning assets 3,031,194 6.19% 2,289,158 7.23% 2,855,400 6.47% 2,235,840 7.58% Other assets 248,962 179,115 235,070 167,593 ---------- ---------- ---------- ---------- Total Assets $3,280,156 $2,468,273 $3,090,470 $2,403,433 ========== ========== ========== ========== Liabilities and Shareholders' Equity Interest bearing demand deposits $ 277,884 0.49% $ 240,131 1.06% $ 267,944 0.63% $ 245,712 1.60% Money market accounts 504,617 2.37% 392,947 3.16% 468,696 2.75% 374,100 3.74% Savings deposits 359,674 0.92% 252,674 1.49% 352,333 1.09% 252,606 1.85% Certificates of deposit 966,611 3.82% 778,425 5.20% 946,425 4.07% 776,852 5.62% ------------------ ------------------ ------------------ ------------------ Total interest bearing deposits 2,108,786 2.54% 1,664,177 3.56% 2,035,398 2.80% 1,649,270 4.02% ------------------ ------------------ ------------------ ------------------ Other borrowings 502,261 3.51% 278,106 3.29% 416,085 3.54% 245,390 4.13% Trust preferred securities 12,650 8.62% --- --- 10,603 8.65% --- --- ------------------ ------------------ ------------------ ------------------ Total interest bearing liabilities 2,623,697 2.76% 1,942,283 3.52% 2,462,086 2.95% 1,894,660 4.03% ------------------ ------------------ ------------------ ------------------ Non-interest bearing demand 292,616 238,176 279,560 228,936 Other liabilities 35,661 27,600 30,762 22,759 Shareholders' equity 328,182 260,214 318,062 257,078 ---------- ---------- ---------- ---------- Total Liabilities and Shareholders' Equity $3,280,156 $2,468,273 $3,090,470 $2,403,433 ========== ========== ========== ========== Taxable equivalent net yield on average earning assets 3.80% 4.26% 3.93% 4.17% ===== ===== ===== =====
WESBANCO, INC. Consolidated Selected Financial Highlights December 31, 2002 and 2001 - ----------------------------------------------------------------------------- (unaudited, dollars in thousands, except per share amounts) For the Three Months Ended For the Year Ended December 31, December 31, -------------------- -------------------- Statement of income 2002 2001 2002 2001 - ------------------- --------- --------- --------- --------- Interest income $ 44,734 $ 40,131 $ 176,155 $ 163,939 Interest expense 18,226 17,224 72,555 76,354 --------- --------- --------- --------- Net interest income 26,508 22,907 103,600 87,585 Provision for loan losses 2,603 1,645 9,359 5,995 --------- --------- --------- --------- Net interest income after provision for loan losses 23,905 21,262 94,241 81,590 --------- --------- --------- --------- Non-interest income Trust fees 3,180 2,944 11,526 11,504 Service charges on deposits 2,889 2,387 10,818 9,182 Other income 852 715 3,617 2,596 Net securities gains 529 339 1,891 1,306 --------- --------- --------- --------- Total non-interest income 7,450 6,385 27,852 24,588 Non-interest expense Salaries and employee benefits 9,843 8,925 39,223 33,841 Net occupancy 1,302 961 5,012 3,998 Equipment 1,752 1,499 6,854 5,913 Other operating 6,364 6,108 23,043 20,907 Non-recurring expenses (1) 392 (90) 2,515 235 --------- --------- --------- --------- Total non-interest expense 19,653 17,403 76,647 64,894 --------- --------- --------- --------- Income before income taxes 11,702 10,244 45,446 41,284 Provision for income taxes 2,582 2,953 10,620 12,282 --------- --------- --------- --------- Net income $ 9,120 $ 7,291 $ 34,826 $ 29,002 ========= ========= ========= ========= Taxable equivalent net interest income $ 28,909 $ 24,414 $ 112,200 $ 93,147 Per common share data - --------------------- Net income (2) $ 0.44 $ 0.41 $ 1.70 $ 1.60 Dividends declared 0.235 0.23 0.935 0.92 Book value (period end) 15.89 14.46 Tangible book value (period end) 13.02 13.40 Average shares outstanding 20,641,964 17,915,161 20,459,122 18,123,851 Period end shares outstanding 20,461,745 17,854,497 Core earnings - ------------- Core earnings $ 9,289 $ 7,360 $ 35,598 $ 29,742 Core earnings per share 0.45 0.41 1.74 1.64 Reconciliation of core earnings to GAAP earnings - -------------------------- Net income $ 9,120 $ 7,291 $ 34,826 $ 29,002 --------- --------- --------- --------- Less: Net gains on securities and net losses on sale of assets(3) 86 213 863 726 Plus: Non-recurring expenses (3) 255 (59) 1,635 153 Plus: Amortization of goodwill --- 341 --- 1,313 --------- --------- --------- --------- Core earnings $ 9,289 $ 7,360 $ 35,598 $ 29,742 ========= ========= ======== ========= Net income per share $ 0.44 $ 0.41 $ 1.70 $ 1.60 --------- --------- -------- --------- Less: Net gains on securities and net losses on sale of assets(3) 0.00 0.01 0.04 0.04 Plus: Non-recurring expenses (3) 0.01 0.00 0.08 0.01 Plus: Amortization of goodwill 0.00 0.01 0.00 0.07 --------- --------- -------- --------- Core earnings per share $ 0.45 $ 0.41 $ 1.74 $ 1.64 ========= ========= ======== ========= (1) non-recurring expenses are primarily related to the acquisition of American Bancorporation. (2) basic and diluted were the same. (3) tax effected. WESBANCO, INC. Consolidated Selected Financial Highlights December 31, 2002 and 2001 - ------------------------------------------------------------------------------ (unaudited, dollars in thousands) For the Three Months Ended For the Year Ended December 31, December 31, ------------------- ------------------ Profitability ratios (annualized) 2002 2001 2002 2001 - --------------------------------- -------- -------- -------- -------- Return on average assets 1.10% 1.17% 1.13% 1.21% Return on average equity 11.02% 11.12% 10.95% 11.28% Yield on earning assets (1) 6.19% 7.23% 6.47% 7.58% Cost of interest bearing liabilities 2.76% 3.52% 2.95% 4.03% Net interest margin (1) 3.80% 4.26% 3.93% 4.17% Efficiency (1), (2) 53.16% 56.23% 53.44% 54.25% December 31, Asset quality data ---------------------- - ------------------ 2002 2001 Non-performing assets: ---------- ---------- Non-accrual loans $ 7,480 $ 4,030 Renegotiated loans 2,646 3,756 ---------- ---------- Total non-performing loans 10,126 7,786 Other real estate and repossessed assets 4,213 3,215 ---------- ---------- Total non-performing loans and assets $ 14,339 $ 11,001 ========== ========== Loans past due 90 days or more $ 12,105 $ 10,496 Allowance for loan losses 25,080 20,786 Net loan charge-offs: Quarter-to-date 2,415 1,465 Year-to-date 8,968 5,239 Allowance for loan losses/non-performing loans 2.48X 2.67X Allowance for loan losses/non-performing loans and past due 90 days or more 1.13X 1.14X Allowance for loan losses/total loans 1.38% 1.35% Non-performing assets/total assets 0.43 0.44 Non-performing assets/total loans, other real estate and repossessed assets 0.79 0.71 Non-performing loans/total loans 0.56 0.51 Non-performing loans and loans past due 90 days or more/allowance for loan losses 88.64 87.95 Net loan charge-offs(annualized)/average loans: Quarterly 0.53 0.38 Annually 0.50 0.34 Regulatory Guidelines --------------------- Well Capital ratios Minimum Capitalized - ----------------- ------- ----------- Tier I leverage capital 4.00 % 5.00 % 8.53% 9.62% Tier I risk-based capital 4.00 6.00 12.95 14.09 Total risk-based capital 8.00 10.00 14.13 15.34 (1) taxable equivalent basis. (2) excludes amortization of goodwill, non-recurring items, net securities gains and net losses on sale of assets. -----END PRIVACY-ENHANCED MESSAGE-----