-----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, GHYyKuT0Y5hxVkVx4IqKV7Y3aDQUm8RL4BNAFalSJeN+cQLrocXqwQ5dY73Z/e38 8t/vFYuKukG6P6HKXZnogg== 0000203596-03-000009.txt : 20030718 0000203596-03-000009.hdr.sgml : 20030718 20030717174534 ACCESSION NUMBER: 0000203596-03-000009 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030717 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030718 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: 03791909 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 er8k.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) July 17, 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 9. Regulation FD Disclosure and ITEM 12. Results of Operations and Financial Condition. On July 17, 2003, WesBanco, Inc. issued a news release announcing its earnings for the six months and quarter ended June 30, 2003. This news release along with related financial highlights is being furnished as Exhibit 99.1 in this Form 8-K under both Item 9 - Regulation FD Disclosure and Item 12 - Results of Operations and Financial Condition and shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended. 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) July 17, 2003 /s/ Robert H. Young - -------------- ---------------------------------- Date Robert H. Young Executive Vice President & Chief Financial Officer Index to Exhibits Exhibit Number Description -------------- ----------- 99.1 Press Release and related financial highlights issued by WesBanco, Inc., dated July 17, 2003. EX-99 4 hilight.txt NEWS FOR IMMEDIATE RELEASE July 17, 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 Earnings for the Six Months ended June 30, 2003 - ------------------------------------------------------------------ Wheeling, WV. Paul M. Limbert, President & CEO of WesBanco, Inc., a Wheeling, West Virginia based multi-state bank holding company, today announced earnings for the six months and quarter ended June 30, 2003. Mr. Limbert stated that WesBanco's earnings per share for the first half of 2003 were $0.82, compared to $0.83 for the first half of 2002. For the second quarter of 2003 earnings per share were $0.38, compared to $0.41 for the second quarter of 2002. Net income for the first half and second quarter of 2003 was impacted by a $0.4 million, net of tax, write-off of unamortized issuance costs, or $.02 per share, related to the redemption of $12.65 million in trust preferred securities. Net income for the first half of 2003 was $16.6 million compared to $16.7 million for the first half of 2002. Net income for the second quarter of 2003 was $7.7 million compared to $8.7 million for the second quarter of 2002. Return on average assets was 1.01% for the six months ended June 30, 2003, compared to 1.15% in 2002, and return on average equity was 10.41% and 11.04%, respectively. The financial results for 2002 reflect the acquisition of American Bancorporation ("American") as of March 1, 2002. "WesBanco's performance for the first half and second quarter of 2003 was impacted by the weak economic conditions in our market areas and the extended low interest rate environment. These factors have caused continued pressure on WesBanco's net interest margin," said Mr. Limbert. "However, we are beginning to see an increase in loan volume exhibited by the $60.1 million or 7.4% growth in commercial and commercial real estate loans during the first half of 2003. The growth in commercial and commercial real estate loans was achieved by adding new lenders in key markets such as Columbus, Ohio and Western Pennsylvania and renewed efforts in WesBanco, Inc. Announces Earnings for the Six Months ended June 30, 2003 - ------------------------------------------------------------------------ Page 2 existing West Virginia markets. WesBanco continues to reposition its balance sheet and adjust product pricing to navigate through the current interest rate environment." Net interest income decreased $2.0 million or 3.9% and $2.6 million or 9.7% compared to the first half and second quarter of 2002. The primary cause for the decrease in net interest income was the net interest margin decreasing to 3.55% and 3.44%, for the first half and second quarter of 2003, compared to 4.04% and 3.93% for the corresponding periods in 2002. The decrease in net interest income was partially offset by the volume of average earning assets increasing $309.8 million or 11.4% and $116.7 million or 4.0%, compared to the first half and second quarter of 2002. The margin decrease resulted from a combination of factors including the American acquisition with its lower overall net interest margin, increased loan and investment security prepayments and the sustained low interest rate environment which has caused rate compression between loan and deposit pricing. Due to the low interest rate conditions, WesBanco's earning assets are repricing at an accelerated rate compared to the repricing of interest bearing liabilities, which may result in an additional reduction in the net interest margin over the next six months. WesBanco has taken steps to minimize the impact of this reduction, by decreasing rates on certain deposit products, shortening the maturities of certain long-term borrowings and reducing short-term liquidity instruments. However, with rates approaching historical lows, combined with the most recent Federal Reserve rate cut, it has become increasingly more difficult to reduce deposit rates. Non-interest income, excluding net securities gains, increased $1.7 million or 13.4% and $0.5 million or 8.2% compared to the first half and second quarter of 2002. The increase is related to growth in deposit activity fees, increases in ATM and debit card interchange income and an increase in bank owned life insurance income. Trust fees decreased $0.3 million or 4.3% and $0.1 million or 4.4% compared to the first half and second quarter of 2002. The decrease was primarily due to lower equity valuations, partially offset by new account relationships and growth in the WesMark funds. The market value of trust assets under management increased to approximately $2.5 billion at June 30, 2003, which was up from $2.3 billion at both December 31, 2002 and March 31, 2003, due to a recent recovery in valuations in the equity markets. Net securities gains increased $0.7 million for the first half of 2003 and $0.8 million for the second quarter of 2003, compared to the corresponding periods in 2002, as WesBanco sold certain agency mortgage-backed securities with recent high prepayment rates. WesBanco, Inc. Announces Earnings for the Six Months ended June 30, 2003 - ------------------------------------------------------------------------ Page 3 The provision for loan losses increased $0.5 million or 11.5% for the first half of 2003 and $0.7 million or 40.9% for the second quarter of 2003, compared to the corresponding periods in 2002. The increase in commercial loan growth, the current economic environment and overall higher nonperforming loans caused the increase in the provision. Net loan charge-offs as a percentage of average total loans on an annualized basis for the first half and second quarter of 2003, were 0.44% and 0.53%, respectively, compared to 0.51% and 0.37%, for the corresponding periods in 2002. The allowance for loan losses was $25.6 million or 1.39% of total loans at June 30, 2003, compared to $25.1 million or 1.38% of total loans at December 31, 2002. The allowance currently provides coverage of 1.65 times non-performing loans and 1.08 times non-performing loans plus loans past due 90 days or more. Non-performing loans, excluding loans past due 90 days or more, increased $5.4 million or 53.4%, compared to December 31, 2002. The extended downturn in the economy has contributed to heightened levels of non-performing loans. Most of the increase in WesBanco's non-performing loans during the first half of 2003 is attributable to weakening credit characteristics for certain commercial real estate loans to the lodging industry as that sector of the economy has been particularly impacted by decreased business and leisure travel. However, loans past due 90 days or more at June 30, 2003 decreased $4.0 million or 33.2%, compared to December 31, 2002, as a result of increased collection efforts, migration of certain loans to nonperforming status and charge-offs. Non-performing loans as a percentage of total loans increased to 0.84% at June 30, 2003, compared to 0.56% at December 31, 2002. Management believes the allowance for loan losses is appropriate based on its evaluation of the credit risk in the loan portfolio. Non-interest expense for the first half and second quarter of 2003, excluding merger-related expenses and other special charges, increased $3.8 million or 10.5% and $0.7 million or 3.8% compared to the first half and second quarter of 2002, respectively. The increase in non-interest expenses for the first half of 2003 in comparison to the first half of 2002 was impacted by the March 1, 2002 acquisition of American. In addition to the incrementally higher operating expenses due to American, WesBanco experienced a $0.8 million increase in pension costs and a $0.2 million increase in health insurance costs as well as a $0.3 million increase in marketing expenses. Assuming the American acquisition had occurred on January 1, 2002, non-interest expenses would have increased approximately $0.9 million or 2.2% for the first half of 2003 compared to the corresponding period last year. The increase in the second quarter comparison consisted primarily of an increase in salary and employee benefit expenses of $0.5 million WesBanco, Inc. Announces Earnings for the Six Months ended June 30, 2003 - ------------------------------------------------------------------------ Page 4 resulting from rising health insurance and pension costs. The increase in these costs was partially offset by a reduction in staffing levels as average full-time equivalent employees decreased to 1,140 in the second quarter of 2003 from 1,170 in the second quarter of 2002. The provision for income taxes decreased $2.9 million or 45.5% and $1.7 million or 58.4% compared to the first half and second quarter of 2002. The effective tax rate declined to 17.0% and 13.8% for the first half and second quarter of 2003, compared to 27.2% and 25.6% for the corresponding periods in 2002. The decrease in the effective tax rate was primarily due to a decrease in pretax income, which was further reduced by an increase in state and municipal tax-exempt interest income and income on bank owned life insurance, as well as the implementation of other strategic business and tax planning initiatives. For the remainder of 2003, the anticipated effective tax rate should approximate 17% to 18%, depending on the level of pretax income. Total loans increased $17.9 million or 1.0% at June 30, 2003 compared to December 31, 2002 as a result of strong growth in commercial and commercial real estate lending, which was offset by a decline in consumer loans. Commercial and commercial real estate loans increased $60.1 million or 7.4% as a result of a greater focus on new business development in all markets. Residential real estate loans increased $2.6 million or 0.4% despite rapid prepayments of both higher fixed rate and adjustable rate mortgages. WesBanco originated $121.0 million in new residential real estate loans for its portfolio during the first half of 2003 compared to $76.7 million during the same period in 2002. Consumer and home equity loans decreased $44.7 million or 10.3% primarily as a result of the continued planned reduction in indirect automobile lending coupled with strong competition from automobile manufacturing finance companies offering low or zero interest rate loans primarily in the new car segment. The yield on loans continues to decrease due to lower rates on new loans and scheduled or negotiated repricing of existing loans at current historic low market rates. Total investment securities increased $74.7 million or 6.3% at June 30, 2003, compared to December 31, 2002. The increase in investment securities was primarily due to growth in core deposits. Additional security purchases were funded by fixed rate Federal Home Loan Bank borrowings. Cash flows from the portfolio due to calls, maturities and prepayments increased to $343.7 million for the first half of 2003, compared to $94.6 million for the first half of 2002. The reinvestment of these cash flows into lower yielding securities, along with increased premium amortization on mortgage backed securities due to elevated prepayment rates, has decreased the portfolio's tax equivalent yield for the first half of 2003 to 5.12% from last year's 5.89%. WesBanco, Inc. Announces Earnings for the Six Months ended June 30, 2003 - ------------------------------------------------------------------------ Page 5 WesBanco's tax equivalent yield for the second quarter of 2003 decreased to 4.91% compared to 5.35% for the first quarter of 2003. At June 30, 2003, the available for sale and the held to maturity portfolio's weighted average life was 1.9 years and 4.8 years, respectively, compared to 2.7 years and 5.4 years at June 30, 2002. The held to maturity portfolio is comprised primarily of longer duration tax exempt state and municipal securities with an average tax equivalent yield of approximately 6.90% at June 30, 2003. Total deposits increased $68.9 million or 2.9% at June 30 2003, compared to December 31, 2002. Deposit growth, compared to December 31, 2002, reflected increases in all deposit categories. Money market accounts, which grew $41.7 million or 8.2%, represented the largest single increase as customers continue to favor our competitively-priced money market product. The average rate paid on deposits for the first half of 2003 decreased to 2.32%, compared to 2.95% for the first half in 2002, as WesBanco reduced interest rates on most of its deposit products. In the second quarter of 2003, WesBanco redeemed all of the 8.50% Junior Subordinated Deferrable Interest Debentures held by its trust subsidiary WesBanco Capital Trust I, by redeeming 1,265,000 shares of its outstanding 8.50% Cumulative Trust Preferred Securities. A total of $12.65 million of Trust Preferred Securities were redeemed at a price of $10.00 per share plus accrued and unpaid interest. Related to the redemption of these securities, WesBanco included in non- interest expenses the write-off of $0.6 million in unamortized issuance costs. On an after-tax basis, the write-off of these costs was $0.4 million. WesBanco also created two new trusts, WesBanco, Inc. Capital Trust II and WesBanco, Inc. Capital Statutory Trust III, which issued $30 million of Floating Rate Preferred Securities with an average coupon of approximately 5.66%, fixed for the first five years of the 30 year term. Thereafter the securities will float at 312 basis points above the three-month LIBOR. The restructuring of the existing trust preferred securities and the issuance of the two new trust preferred securities will lower overall long-term borrowing costs, as well as support the existing share repurchase program. Shareholders' equity remained strong at June 30, 2003 highlighted by a Tier I leverage ratio of 8.70%, compared to 8.53% at December 31, 2002. Book value increased to $15.92 per share from $15.89 per share at December 31, 2002. In the first half of 2003, WesBanco repurchased a total of 480,876 shares through its current stock repurchase plan at an average cost of $24.28 per share. As of June 30, 2003, WesBanco had repurchased a total of 989,475 shares through the current one million-share stock repurchase plan WesBanco, Inc. Announces Earnings for the Six Months ended June 30, 2003 - ------------------------------------------------------------------------ Page 6 approved by the Board on June 20, 2002. In the second quarter of 2003, WesBanco also announced a new one million-share repurchase plan, as the current plan nears completion. The timing, price and quantity of purchases are at the discretion of WesBanco and the program may be discontinued or suspended at any time. WesBanco is a multi-state bank holding company presently operating through 72 banking offices and 105 ATM machines in West Virginia, Central and Eastern Ohio and Western Pennsylvania. WesBanco is the second largest bank holding company headquartered in West Virginia with the third overall deposit market share. Its 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 the company's most recent annual report filed with the Securities and Exchange Commission on Form 10-K for the year ended December 31, 2002, as well as Form 10-Q for the prior quarter ended March 31, 2003 which are available at the SEC's website (www.sec.gov) or at WesBanco's website (www.wesbanco.com). Investors are cautioned that 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, 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 and Federal Deposit Insurance Corporation; potential legislative and federal and state regulatory actions and reform; competitive conditions in the financial services industry; rapidly changing technology affecting financial services, and/or other external developments materially impacting WesBanco's operational and financial performance. WesBanco does not assume any duty to update forward-looking statements. ### See attached financial highlights. WESBANCO, INC. Consolidated Selected Financial Highlights June 30, 2003 and 2002 and December 31, 2002 Page 7 - ----------------------------------------------------------------------------- (unaudited, dollars in thousands) Balance sheet (period end) - -------------------------- June 30, December 31, June 30, Assets 2003 2002 2002 ---------- ----------- ---------- Cash and due from banks $ 100,436 $ 80,101 $ 72,711 Due from banks - Interest bearing 1,282 984 1,074 Federal funds sold --- --- 46,800 Securities 1,268,607 1,193,896 1,082,854 Loans: Commercial and Commercial Real Estate 871,050 810,973 801,195 Residential Real Estate 576,390 573,819 573,743 Consumer and Home Equity 391,390 436,093 467,458 ---------- ---------- ---------- Total loans 1,838,830 1,820,885 1,842,396 Allowance for loan losses (25,578) (25,080) (24,281) ---------- ---------- ---------- Net loans 1,813,252 1,795,805 1,818,115 ---------- ---------- ---------- Premises and equipment 54,974 55,725 57,180 Goodwill 49,520 49,520 46,940 Other intangibles 8,650 9,310 15,417 Other assets 114,261 111,890 65,770 ---------- ---------- ---------- Total Assets $3,410,982 $3,297,231 $3,206,861 ========== ========== ========== Liabilities and Shareholders' Equity Non-interest bearing demand deposits $ 308,299 $ 301,262 $ 302,067 Interest bearing demand deposits 287,505 276,131 268,516 Money market accounts 549,766 508,062 473,138 Savings deposits 360,948 357,290 372,453 Certificates of deposit 962,315 957,211 986,128 ---------- ---------- ---------- Total deposits 2,468,833 2,399,956 2,402,302 ---------- ---------- ---------- Other borrowings 520,902 518,958 427,430 Trust preferred securities 30,000 12,650 12,650 Other liabilities 72,508 40,496 33,304 Shareholders' equity 318,739 325,171 331,175 ---------- ---------- ---------- Total Liabilities and Shareholders' Equity $3,410,982 $3,297,231 $3,206,861 ========== ========== ========== Average balance sheet and For the Three Months Ended For the Six Months Ended net interest analysis June 30, June 30, - ------------------------- ---------------------------------------- ------------------------------------ 2003 2002 2003 2002 ------------------- ----------------- ----------------- ----------------- Average Average Average Average Average Average Average Average Assets Volume Rate Volume Rate Volume Rate Volume Rate ------------------- ----------------- ----------------- ----------------- Loans, net of unearned income $1,819,403 6.20% $1,855,188 7.04% $1,817,922 6.31% $1,752,259 7.20% Securities: Taxable 838,206 3.84% 707,944 4.92% 811,925 4.10% 636,284 5.12% Tax-exempt 364,154 7.36% 337,184 7.54% 367,955 7.38% 296,520 7.55% ------------------ ----------------- ----------------- ----------------- Total securities 1,202,360 4.91% 1,045,128 5.76% 1,179,880 5.12% 932,804 5.89% Federal funds sold 36,042 1.20% 40,830 1.74% 34,619 1.18% 37,551 1.67% ------------------ ----------------- ----------------- ----------------- Total earning assets 3,057,805 5.63% 2,941,146 6.51% 3,032,421 5.79% 2,722,614 6.68% Other assets 290,681 243,584 288,852 219,028 ---------- ---------- ---------- ---------- Total Assets $3,348,486 $3,184,730 $3,321,273 $2,941,642 ========== ========== ========== ========== Liabilities and Shareholders' Equity Interest bearing demand deposits $ 283,563 0.40% $ 270,113 0.72% $ 280,175 0.42% $ 261,202 0.73% Money market accounts 536,682 2.27% 463,779 2.88% 525,705 2.28% 443,262 2.92% Savings deposits 363,794 0.68% 378,411 1.21% 361,034 0.73% 339,577 1.16% Certificates of deposit 971,923 3.33% 993,994 4.00% 971,968 3.48% 920,898 4.25% ------------------ ----------------- ----------------- ----------------- Total interest bearing deposits 2,155,962 2.23% 2,106,297 2.83% 2,138,882 2.32% 1,964,939 2.95% Other borrowings 516,624 3.29% 420,438 3.59% 513,522 3.30% 365,350 3.54% Trust preferred securities 15,159 8.07% 12,650 8.73% 13,912 8.41% 8,527 8.68% ------------------ ----------------- ----------------- ----------------- Total interest bearing liabilities 2,687,745 2.49% 2,539,385 2.99% 2,666,316 2.54% 2,338,816 3.06% ------------------ ----------------- ----------------- ----------------- Non-interest bearing demand deposits 298,609 286,583 294,478 269,455 Other liabilities 41,603 28,712 38,367 27,485 Shareholders' equity 320,529 330,050 322,112 305,886 ---------- ---------- ---------- ---------- Total Liabilities and Shareholders' Equity $3,348,486 $3,184,730 $3,321,273 $2,941,642 ========== ========== ========== ========== Taxable equivalent net yield on average earning assets 3.44% 3.93% 3.55% 4.04% ======= ======= ======= =======
WESBANCO, INC. Consolidated Selected Financial Highlights June 30, 2003 and 2002 Page 8 - ------------------------------------------------------------------------------ (unaudited, dollars in thousands, except per share amounts) For the Three Months Ended For the Six Months Ended June 30, June 30, -------------------------- ------------------------ Statement of income 2003 2002 2003 2002 - ------------------- ---------- ---------- ---------- ---------- Interest income $ 40,619 $ 45,566 $ 82,524 $ 86,435 Interest expense 16,540 18,915 33,604 35,533 ---------- ---------- ---------- ---------- Net interest income 24,079 26,651 48,920 50,902 Provision for loan losses 2,479 1,760 4,459 3,999 ---------- ---------- ---------- ---------- Net interest income after provision for loan losses 21,600 24,891 44,461 46,903 ---------- ---------- ---------- ---------- Non-interest income Trust fees 2,615 2,735 5,597 5,850 Service charges on deposits 2,985 2,805 5,703 5,096 Other income 1,321 858 2,863 1,548 Net securities gains 1,347 509 2,353 1,683 ---------- ---------- ---------- ---------- Total non-interest income 8,268 6,907 16,516 14,177 Non-interest expense Salaries and employee benefits 10,652 10,117 21,094 19,358 Net occupancy 1,341 1,256 2,831 2,358 Equipment 1,818 1,909 3,636 3,292 Other operating 6,346 6,137 12,559 11,288 Merger-related expenses and other special charges (1) 728 715 820 1,781 ---------- ---------- ---------- ---------- Total non-interest expense 20,885 20,134 40,940 38,077 ---------- ---------- ---------- ---------- Income before income taxes 8,983 11,664 20,037 23,003 Provision for income taxes 1,242 2,986 3,407 6,257 ---------- ---------- ---------- ---------- Net income $ 7,741 $ 8,678 $ 16,630 $ 16,746 ========== ========== ========== ========== Taxable equivalent net interest income $ 26,425 $ 28,876 $ 53,670 $ 54,818 Per common share data - --------------------- Net income (2) $ 0.38 $ 0.41 $ 0.82 $ 0.83 Dividends declared 0.24 0.235 0.48 0.465 Book value (period end) 15.92 15.74 Tangible book value (period end) 13.01 12.77 Average shares outstanding 20,122,685 21,213,306 20,243,813 20,121,032 Period end shares outstanding 20,027,323 21,045,001 Profitability ratios (annualized) - --------------------------------- Return on average assets 0.93% 1.09% 1.01% 1.15% Return on average equity 9.69% 10.55% 10.41% 11.04% Yield on earning assets (3) 5.63% 6.51% 5.79% 6.68% Cost of interest bearing liabilities 2.49% 2.99% 2.54% 3.06% Net interest margin (3) 3.44% 3.93% 3.55% 4.04% Efficiency (3), (4) 60.11% 54.98% 58.94% 53.76%
(1) merger-related expenses are primarily related to the acquisition of American Bancorporation and other special charges include the writeoff of $0.6 million in unamortized issuance costs associated with the redemption of trust preferred securities occurring in the second quarter of 2003. (2) basic and diluted were the same. (3) taxable equivalent basis. (4) excludes merger related expenses, other special charges, net securities gains and net losses on sale of assets. WESBANCO, INC. Consolidated Selected Financial Highlights June 30, 2003 and 2002 and December 31, 2002 Page 9 - ----------------------------------------------------------------------------- (unaudited, dollars in thousands) June 30, December 31, June 30, Asset quality data 2003 2002 2002 - ------------------ ------------ --------------- ------------ Non-performing assets: Non-accrual loans $ 14,867 $ 7,480 $ 8,319 Renegotiated loans 663 2,646 2,676 ------------ --------------- ------------ Total non-performing loans 15,530 10,126 10,995 Other real state and repossessed assets 3,862 4,213 3,609 ------------ --------------- ------------ Total non-performing loans and assets $ 19,392 $ 14,339 $ 14,604 ============ =============== ============ Loans past due 90 days or more $ 8,091 $ 12,105 $ 10,894 Allowance for loan losses 25,578 25,080 24,281 Net loan charge-offs: Quarter-to-date 2,417 2,415 1,698 Year -to-date 3,961 8,968 4,407 Allowance for loan losses/non- performing loans 1.65 X 2.48 X 2.21 X Allowance for loan losses/non- performing loans and past due 90 days or more 1.08 X 1.13 X 1.11 X Allowance for loan losses/total loans 1.39 % 1.38 % 1.32 % Non-performing assets/total assets 0.57 0.43 0.46 Non-performing assets/total loans, other real estate and repossessed assets 1.05 0.79 0.79 Non-performing loans/total loans 0.84 0.56 0.60 Non-performing loans and loans past due 90 days or more/total loans 1.28 1.22 1.19 Net loan charge-offs(annualized) /average loans 0.44 0.53 0.51 Regulatory Guidelines ----------------------- Well Capital ratios Minimum Capitalized --------- ----------- Tier I leverage capital 4.00 % 5.00 % 8.70 % 8.53 % 8.85 % Tier I risk-based capital 4.00 6.00 13.29 12.95 13.22 Total risk-based capital 8.00 10.00 14.47 14.13 14.38
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