EX-99.1 2 earnings.htm EARNINGS RELEASE Earnings Release
NEWS FOR IMMEDIATE RELEASE        EXHIBIT 99.1
April 19, 2006            For Further Information Contact:

Paul M. Limbert
President and Chief Executive Officer

or

Robert H. Young
Executive Vice President and Chief Financial Officer

(304) 234-9000
NASDAQ Trading Symbol: WSBC
Website: www.wesbanco.com


WesBanco Announces First Quarter 2006 Results

Wheeling, WV… 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 first quarter.

Net income for the quarter ended March 31, 2006 was $5.6 million and included $4.9 million in after-tax losses arising in connection with the sale of securities under the planned balance sheet repositioning previously announced, a $1.5 million after-tax gain on the sale of the Ritchie County branch offices and $0.3 million in after-tax costs associated with the restructuring of a business unit, as compared to $11.1 million for the first quarter of 2005, a 49.6% decrease. Diluted earnings per share were $0.25 for the first quarter compared to $0.48 for the same period in 2005. Core operating earnings, excluding the above-noted items, were $9.3 million or $0.42 per diluted share as compared to $11.4 million or $0.49 per share for the first quarter of 2005.

“At the end of the quarter, WesBanco established a plan to reposition its balance sheet,” stated Mr. Limbert, “by selling approximately $200 million in fixed rate securities available for sale and paying down a commensurate amount of high-cost FHLB and other short-term borrowings. While this planned repositioning was costly in the short run, with first quarter earnings reflecting a charge of approximately $8.0 million to record the impairment of securities that were to be disposed early in the second quarter, we believe WesBanco is better positioned in the current flat interest rate environment, with an expected 25 basis point increase in net interest margin, reduced reliance upon expensive short-term wholesale borrowings, and improved measures for tangible equity, efficiency, return on average assets and return on average equity. In addition, we closed on our late 2005-announced sale of four Ritchie County, West Virginia branch offices to another local bank at a net pre-tax gain of approximately $2.5 million. With these actions, WesBanco continues to focus on improving the quality of its earnings while repositioning its branch structure into higher growth markets in central and southwestern Ohio.”

Highlights for the first quarter of 2006 are as follows:

·  
Net interest income for the first quarter decreased $2.5 million or 7.5% compared to the first quarter of 2005 primarily due to compression in the net interest margin, which was 3.40% compared to 3.51% for the first quarter of 2005, along with reductions in net earning assets. A flat to inverted yield curve, along with rising interest rates, particularly on the short end of the curve, contributed to the compression in net interest margin.

·  
Non-interest income, net of the loss associated with the balance sheet repositioning and the gain on the sale of the Ritchie County branches, increased $1.5 million or 15.4% over the first quarter of 2005. The increase was primarily driven by a $1.3 million increase in activity charges on deposit accounts resulting from a new overdraft program introduced in the fourth quarter of 2005, higher electronic banking fees and a 9.3% increase in trust and investment management fees. The trust increase was due to higher asset values under management as well as new business.

·  
WesBanco’s provision for loan losses increased $0.8 million or 43.2% over the first quarter of 2005 due to an increase in non-performing loans, primarily from a $5.0 million commercial loan participation which was placed on non-accrual in the first quarter. Net charge-offs on an annualized basis were 0.18% for the first quarter as compared to 0.14% for the first quarter of 2005. On a linked-quarter basis, net charge-offs decreased from 0.50% in the fourth quarter of 2005, which was elevated due to an increase in bankruptcies, as individuals filed in advance of new bankruptcy laws, and a $0.7 million write-down of certain underperforming commercial loans classified as held for sale at year end. The underperforming loans, totaling $6.7 million, were subsequently sold with no additional gain or loss recognized in the first quarter. The allowance for loan losses as a percentage of total loans increased to 1.10% at the end of the first quarter.
 
·  
Non-interest expense decreased $0.3 million or 1.2% compared to the first quarter of 2005. The decrease was primarily due to a decrease in full-time equivalent employees, which was somewhat offset by an increase in health care costs. Full-time equivalent employees at the end of the first quarter were 1,165 compared to 1,358 for the first quarter of 2005. In the first quarter of 2006, WesBanco recorded a pre-tax charge of $0.5 million in severance payouts and lease termination costs associated with the restructuring of its mortgage business unit. A similar amount was recorded in the first quarter of 2005 for Winton Financial Corporation merger-related expenses.
 
·  
Total loans decreased by $28.0 million in the first quarter as compared to the first quarter of 2005, but net of approximately $94.0 million in loan sales over the past year, loans were up approximately $34.0 million. In addition, the mix of the portfolio has changed. Residential real estate loans decreased by approximately $102.2 million ($67.8 million of which were sold in the second quarter of 2005), as WesBanco focused on reducing its overall residential loan portfolio as a percentage of total loans, selling a greater portion of new originations into the secondary market, which decrease was partially offset by an increase in commercial and commercial real estate loans of approximately $76.0 million. Consumer and home equity loans remained relatively flat in the first quarter as compared to the first quarter of 2005. Approximately $19.3 million of loans were sold in connection with the sale of the Ritchie County branch offices, in addition to the above-mentioned sale of underperforming loans.

·  
Total deposits decreased by $77.6 million or 2.5% in the first quarter compared to the first quarter of 2005. The decrease in deposits was due to continued runoff in money market deposit accounts, as customer preferences in a rising rate environment have turned to short- and intermediate-term certificates of deposit and non-bank money market funds, and the sale of approximately $37.8 million of deposits in connection with the sale of the Ritchie County branches. WesBanco experienced an increase of 4.2% in average certificates of deposit and 3.7% in average non-interest bearing demand deposit accounts compared to last year, with the free checking account increase a result of an aggressive marketing campaign beginning in the fourth quarter that has resulted in the opening of over 14,000 new accounts.

·  
The provision for income taxes decreased $1.6 million or 54.3% compared to the first quarter of 2005 due to a decrease in pre-tax income. Pre-tax income decreased primarily due to the securities losses associated with the balance sheet repositioning. The effective tax rate for the year is expected to range from 19.5% to 20.0%. The effective rate for core operating earnings, which are presented in the accompanying financial highlights schedules, would be expected to approximate 21.7% for the year.

·  
In the first quarter of 2006, WesBanco’s dividend rate was increased 1.9% to $1.06 per share on an annualized basis ($0.265 per quarter), up from the previous rate of $1.04 per share. During the quarter, Mergent, Inc. recognized WesBanco as one of its “Mergent’s Dividend Achievers®” for 2006. As such, WesBanco is one of just 3% of all U.S. publicly listed companies to meet Mergent’s stringent criteria, including successfully delivering dividend increases to shareholders for 10 or more years. WesBanco has actually increased dividends over the last 21 consecutive years.

·  
For the quarter ended March 31, 2006, WesBanco repurchased a total of 39,200 common shares at an average price of $31.39 per share. WesBanco has 98,961 shares remaining for repurchase under the current repurchase plan approved in March 2005, and 1,000,000 shares under a new plan approved in January 2006.


WesBanco is a multi-state bank holding company with total assets of approximately $4.3 billion, currently operating through 81 banking offices, two loan production offices, and 128 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, filed with the Securities and Exchange Commission (“SEC”), which is 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, 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; 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
        
Page 4
  
(unaudited, dollars in thousands, except per share amounts)
            
             
 
For the Three Months Ended
 
 
March 31,
  
Statement of income
2006
  
2005
  
% Change
  
Interest income
$ 56,447
 
$ 54,884
 
2.85%
  
Interest expense
25,464
 
21,383
 
19.09%
  
Net interest income
30,983
 
33,501
 
(7.52%)
  
Provision for loan losses
2,640
 
1,843
 
43.24%
  
Net interest income after provision for
           
loan losses
28,343
 
31,658
 
(10.47%)
  
Non-interest income
            
Trust fees
4,058
 
3,714
 
9.26%
  
Service charges on deposit accounts
3,797
 
2,462
 
54.22%
  
Net securities (losses)/gains (1)
(7,942)
  
753
 
(1154.71%)
  
Other income (2)
5,501
 
2,602
 
111.41%
  
Total non-interest income
5,414
 
9,531
 
(43.20%)
  
Non-interest expense
            
Salaries and employee benefits
13,416
 
13,896
 
(3.45%)
  
Net occupancy
2,013
 
1,796
 
12.08%
  
Equipment
2,030
 
2,204
 
(7.89%)
  
Core deposit intangibles
633
 
663
 
(4.52%)
  
Merger-related expenses (3)
-
 
493
 
(100.00%)
  
Restructuring expenses (4)
540
 
-
 
100.00%
  
Other operating
8,180
 
8,077
 
1.28%
  
Total non-interest expense
26,812
 
27,129
 
(1.17%)
  
Income before provision for income taxes
6,945
 
14,060
 
(50.60%)
  
Provision for income taxes
1,361
 
2,980
 
(54.33%)
  
Net income
$ 5,584
 
$ 11,080
 
(49.60%)
  
 
            
Taxable equivalent net interest income
$ 33,303
 
$ 36,024
 
(7.55%)
  
             
Per common share data
            
Net income per common share - basic
$ 0.25
 
$ 0.48
 
(46.97%)
  
Net income per common share - diluted
$ 0.25
 
$ 0.48
 
(47.12%)
  
Dividends declared
$ 0.265
 
$ 0.26
 
1.92%
  
Book value (period end)
$ 18.98
 
$ 18.62
 
1.94%
  
Tangible book value (period end)
$ 12.28
 
$ 12.08
 
1.62%
  
Average shares outstanding - basic
21,937,948
 
22,992,398
 
(4.59%)
  
Average shares outstanding - diluted
21,998,750
 
23,043,874
 
(4.54%)
  
Period end shares outstanding
21,925,266
 
22,769,417
 
(3.71%)
  
             
Selected ratios
            
Return on average assets
0.52%
  
0.99%
  
(47.42%)
  
Return on average equity
5.45%
  
10.42%
  
(47.71%)
  
Yield on earning assets (5)
6.01%
  
5.60%
  
7.32%
  
Cost of interest bearing liabilities
2.93%
  
2.33%
  
25.69%
  
Net interest spread (5)
3.08%
  
3.27%
  
(5.78%)
  
Net interest margin (5)
3.40%
  
3.51%
  
(3.20%)
  
Efficiency (5)
69.25%
  
59.55%
  
16.29%
  
Average loans to average deposits
97.78%
  
96.44%
  
1.39%
  
Annualized net loan charge-offs/average loans
0.18%
  
0.14%
  
25.52%
  
Effective income tax rate
19.60%
  
21.19%
  
6.30%
  
 
            
(1) includes other-than-temporary impairment losses totaling $8,048 on available-for-sale securities.
        
(2) includes a gain of $2,465 on the sale of the Ritchie County, West Virginia branch offices.
      
(3) merger-related expenses in 2005, are primarily related to the acquisitions of Winton Financial Corporation and Western
  
Ohio Financial Corporation.
            
(4) restructuring costs associated with a reduction of WesBanco's workforce through layoffs and business unit restructuring.
  
(5) 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
  Page 5  
(unaudited, dollars in thousands)
    
 
 
 
 
 
 
% Change
 
 
 
 
 
% Change
 
Balance sheet (period end)
 
 
 
 
 
 
 
 
March 31, 2005 to
 
 
 
 
 
December 31, 2005
 
Assets
 
 
March 31,
2006
 
 
March 31,
2005
 
 
March 31, 2006
 
 
December 31, 2005
 
 
to March 31, 2006
  
Cash and due from banks
  
$
99,071
  
$
71,138
    
39.27
%
$
108,176
    
(8.42
)%
Due from banks - Interest bearing
   
1,225
   
3,555
   
(65.54
)
  
2,432
   
(49.63
)
Federal funds sold
    
-
   
-
   
-
   
-
   
-
 
Securities
    
936,018
   
1,138,094
   
(17.76
)
  
992,564
   
(5.70
)
Loans:
                                
Commercial and commercial real estate
    
1,565,591
   
1,489,547
   
5.11
   
1,535,503
   
1.96
 
Residential real estate
   
926,928
   
1,029,102
   
(9.93
)
  
958,626
   
(3.31
)
Consumer and home equity
    
442,854
   
444,586
   
(0.39
)
  
446,751
   
(0.87
)
Total loans
    
2,935,373
   
2,963,235
   
(0.94
)
  
2,940,880
   
(0.19
)
Allowance for loan losses
    
(32,291
)
  
(32,225
)
  
0.20
   
(30,957
)
  
4.31
 
Net loans
    
2,903,082
   
2,931,010
   
(0.95
)
  
2,909,923
   
(0.24
)
Premises and equipment, net
    
63,899
   
62,363
   
2.46
   
64,707
   
(1.25
)
Goodwill
    
137,258
   
136,619
   
0.47
   
137,258
   
-
 
Core deposit intangible, net
    
9,767
   
12,304
   
(20.62
)
  
10,400
   
(6.09
)
Other assets
    
196,990
   
202,530
   
(2.74
)
  
196,655
   
0.17
 
Total Assets
  
$
4,347,310
  
$
4,557,613
    
(4.61
)%
$
4,422,115
    
(1.69
)%
                                 
Liabilities and Shareholders' Equity
                                
Non-interest bearing demand deposits
  
$
398,408
  
$
359,871
    
10.71
%
$
392,116
    
1.60
%
Interest bearing demand deposits
    
324,572
   
324,268
   
0.09
   
325,582
   
(0.31
)
Money market accounts
   
404,612
   
577,532
   
(29.94
)
  
444,071
   
(8.89
)
Savings deposits
    
467,968
   
448,659
   
4.30
   
462,601
   
1.16
 
Certificates of deposit
    
1,396,463
   
1,359,260
   
2.74
   
1,403,954
   
(0.53
)
Total deposits
    
2,992,023
   
3,069,590
   
(2.53
)
  
3,028,324
   
(1.20
)
Federal Home Loan Bank borrowings
    
574,745
   
711,415
   
(19.21
)
  
612,693
   
(6.19
)
Other borrowings
    
237,437
   
225,893
   
5.11
   
244,301
   
(2.81
)
Junior subordinated debt
    
87,638
   
87,638
   
-
   
87,638
   
-
 
Other liabilities
    
39,296
   
39,031
   
0.68
   
33,929
   
15.82
 
Shareholders' equity
    
416,171
   
424,046
   
(1.86
)
  
415,230
   
0.23
 
Total Liabilities and Shareholders' Equity
  
$
4,347,310
  
$
4,557,613
    
(4.61
)%
$
4,422,115
    
(1.69
)%
                                 
 

Average balance sheet and
  
For the Three Months Ended
net interest margin analysis
  
 March 31,
         
2006
2005
         
Average
Annualized
Average
 
Average
Annualized
Average
Assets
 
 
 
 
Volume
Interest
Rate
 
Volume
Interest
Rate
Due from banks - interest bearing
    
$ 1,806
$ 44
2.44%
  
$ 6,736
$ 81
1.20%
Loans, net of unearned income
    
2,927,528
185,469
6.34%
  
2,959,371
173,764
5.87%
Securities:
                
 
Taxable
  
582,779
23,792
4.08%
  
713,712
27,628
3.87%
Tax-exempt
  
398,180
26,511
6.66%
  
410,699
28,837
7.02%
Total securities
  
980,959
50,303
5.13%
  
1,124,411
56,465
5.02%
Federal funds sold
  
-
-
0.00%
  
3,690
88
2.38%
Other earning assets (1)
  
43,444
1,792
4.12%
  
48,278
1,692
3.50%
Total earning assets
  
3,953,737
$ 237,608
6.01%
  
4,142,486
$ 232,090
5.60%
Other assets
  
396,807
     
407,192
 
  
Total Assets
$ 4,350,544
     
$ 4,549,678
   
                       
Liabilities and Shareholders' Equity
                
Interest bearing demand deposits
  
$ 320,452
$ 2,214
0.69%
  
$ 330,477
$ 1,326
0.40%
Money market accounts
 
425,387
8,902
2.09%
  
588,321
10,796
1.84%
Savings deposits
  
465,307
5,175
1.11%
  
437,892
2,255
0.51%
Certificates of deposit
  
1,409,658
50,666
3.59%
  
1,352,283
39,083
2.89%
Total interest bearing deposits
  
2,620,804
66,957
2.55%
  
2,708,973
53,460
1.97%
Federal Home Loan Bank borrowings
  
602,733
21,730
3.61%
  
719,746
24,102
3.35%
Other borrowings
  
215,088
9,093
4.23%
  
221,499
4,867
2.20%
Junior subordinated debt
  
87,638
5,491
6.27%
  
74,580
4,295
5.76%
Total interest bearing liabilities
 
3,526,263
$ 103,271
2.93%
  
3,724,798
$ 86,724
2.33%
Non-interest bearing demand deposits
  
373,061
     
359,619
   
Other liabilities
  
35,566
     
34,179
   
Shareholders' equity
  
415,654
     
431,082
   
Total Liabilities and
                
Shareholders' Equity
  
$ 4,350,544
     
$ 4,549,678
   
                       
Taxable equivalent net interest spread
    
3.08%
      
3.27%
Taxable equivalent net interest margin
     
3.40%
      
3.51%
                       
(1) Federal Reserve stock, Federal Home Loan Bank stock and equity securities that do not have readily determinable fair market values.
 

                   
WESBANCO, INC.
                  
Consolidated Selected Financial Highlights
                
Page 6
(unaudited, dollars in thousands, except per share amounts)
                
                   
 
Quarter Ended
 
March 31,
  
Dec. 31,
  
Sept. 30,
  
June 30,
  
March 31,
Statement of income
2006
  
2005
  
2005
  
2005
  
2005
Interest income
$ 56,447
 
$ 57,096
 
$ 56,231
 
$ 56,534
 
$ 54,884
Interest expense
25,464
 
24,742
 
23,643
 
22,666
 
21,383
Net interest income
30,983
 
32,354
 
32,588
 
33,868
 
33,501
Provision for loan losses
2,640
 
2,142
 
2,141
 
1,919
 
1,843
Net interest income after provision for
                 
loan losses
28,343
 
30,212
 
30,447
 
31,949
 
31,658
Non-interest income
                  
Trust fees
4,058
 
3,538
 
3,541
 
3,512
 
3,714
Service charges on deposit accounts
3,797
 
3,515
 
2,834
 
2,723
 
2,462
Net securities (losses)/gains
(7,942)
  
59
 
141
 
1,068
 
753
Other income
5,501
 
2,710
 
3,324
 
2,637
 
2,602
Total non-interest income
5,414
 
9,822
 
9,840
 
9,940
 
9,531
Non-interest expense
                  
Salaries and employee benefits
13,416
 
13,446
 
14,420
 
14,528
 
13,896
Net occupancy
2,013
 
1,776
 
1,844
 
1,751
 
1,796
Equipment
2,030
 
1,969
 
2,018
 
2,190
 
2,204
Core deposit intangibles
633
 
654
 
665
 
685
 
663
Merger-related expenses (1)
-
 
-
 
15
 
70
 
493
Restructuring expenses (2)
540
 
-
 
952
 
-
 
-
Other operating
8,180
 
8,790
 
7,749
 
8,269
 
8,077
Total non-interest expense
26,812
 
26,635
 
27,663
 
27,493
 
27,129
Income before income taxes
6,945
 
13,399
 
12,624
 
14,396
 
14,060
Provision for income taxes
1,361
 
2,850
 
2,754
 
3,138
 
2,980
Net income
$ 5,584
 
$ 10,549
 
$ 9,870
 
$ 11,258
 
$ 11,080
                   
Taxable equivalent net interest income
$ 33,303
 
$ 34,786
 
$ 35,111
 
$ 36,448
 
$ 36,024
                   
Per common share data
                  
Net income per common share - basic
$ 0.25
 
$0.48
 
$ 0.44
 
$ 0.50
 
$ 0.48
Net income per common share - diluted
$ 0.25
 
$0.48
 
$ 0.44
 
$ 0.50
 
$ 0.48
Dividends declared
$ 0.265
 
$0.26
 
$ 0.26
 
$ 0.26
 
$ 0.26
Book value (period end)
$ 18.98
 
$18.91
 
$ 18.74
 
$ 18.82
 
$ 18.62
Tangible book value (period end)
$ 12.28
 
$12.19
 
$ 12.08
 
$ 12.15
 
$ 12.08
Average shares outstanding - basic
21,937,948
 
22,070,906
 
22,260,541
 
22,587,213
 
22,992,398
Average shares outstanding - diluted
21,998,750
 
22,127,684
 
22,320,674
 
22,643,463
 
23,043,874
Period end shares outstanding
21,925,266
 
21,955,359
 
22,156,096
 
22,321,525
 
22,769,417
Full time equivalent employees
1,165
 
1,200
 
1,254
 
1,311
 
1,358
                   
Selected ratios
                  
Return on average assets
0.52%
  
0.95%
  
0.88%
  
0.99%
  
0.99%
Return on average equity
5.45%
  
10.09%
  
9.35%
  
10.66%
  
10.42%
Yield on earning assets (3)
6.01%
  
5.88%
  
5.78%
  
5.71%
  
5.60%
Cost of interest bearing liabilities
2.93%
  
2.74%
  
2.59%
  
2.44%
  
2.33%
Net interest spread (3)
3.08%
  
3.14%
  
3.19%
  
3.27%
  
3.27%
Net interest margin (3)
3.40%
  
3.45%
  
3.46%
  
3.52%
  
3.51%
Efficiency (3)
69.25%
  
59.71%
  
61.54%
  
59.27%
  
59.55%
Average loans to average deposits
97.78%
  
96.92%
  
95.80%
  
96.36%
  
96.44%
Trust Assets, market value at period end
$ 2,871,129
 
$ 2,599,463
 
$ 2,598,993
 
$ 2,557,916
 
$ 2,589,631
                   
(1) merger-related expenses in 2005, are primarily related to the acquisitions of Winton Financial Corporation and Western.
Ohio Financial Corporation.
(2) restructuring costs associated with a reduction of WesBanco's workforce through layoffs and business unit restructuring.
(3) 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
                
Page 7
 
(unaudited, dollars in thousands)
                    
       
Quarter Ended
       
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
March 31,
 
Asset quality data
 
2006
 
2005
 
2005
 
2005
 
2005
  
Non-performing assets:
                    
 Non-accrual loans
$ 14,129
 
$ 9,920
 
$ 9,812
 
$ 10,941
 
$ 8,476
 
 Renegotiated loans
-
 
-
 
-
 
-
 
-
 
 Total non-performing loans
14,129
 
9,920
 
9,812
 
10,941
 
8,476
 
 Other real estate and repossessed assets
2,692
 
1,868
 
1,929
 
2,525
 
2,497
 
 Total non-performing loans and assets
$ 16,821
 
$ 11,788
 
$ 11,741
 
$ 13,466
 
$ 10,973
 
Loans past due 90 days or more
$ 6,528
 
$ 10,054
 
$ 8,411
 
$ 7,585
 
$ 8,032
 
                           
Non-performing assets/total assets
0.39
%
0.27
%
0.27
%
0.30
%
0.24
%
Non-performing assets/total loans, other real
                   
 estate and repossessed assets
0.57
%
0.40
%
0.40
%
0.46
%
0.37
%
Non-performing loans/total loans
0.48
%
0.34
%
0.33
%
0.37
%
0.29
%
Non-performing loans and loans past due 90
                   
 days or more/total loans
0.70
%
0.68
%
0.62
%
0.63
%
0.56
%
Non-performing loans, loans past due 90 days and other
                   
 real estate owned/total loans and other real estate owned
0.79
%
0.74
%
0.69
%
0.72
%
0.64
%
                           
Allowance for loan losses
                      
Allowance for loan losses
$ 32,291
 
$ 30,957
 
$ 32,497
 
$ 32,348
 
$ 32,225
 
Provision for loan losses
2,640
 
2,142
 
2,141
 
1,919
 
1,843
 
Net loan charge-offs
1,306
 
3,682
 
1,993
 
1,795
 
1,051
 
Annualized net loan charge-offs /average loans
0.18
%
0.50
%
0.27
%
0.24
%
0.14
%
Allowance for loan losses/total loans
1.10
%
1.05
%
1.11
%
1.10
%
1.09
%
Allowance for loan losses/non-performing loans
2.29
x
3.12
x
3.31
x
2.96
x
3.80
x
Allowance for loan losses/non-performing loans and
                    
past due 90 days or more
1.56
x
1.55
x
1.78
x
1.75
x
1.95
x
                           
                           
                           
                           
Capital ratios
                      
Tier I leverage capital
8.56
%
8.46
%
8.38
%
8.17
%
8.34
%
Tier I risk-based capital
11.98
%
11.94
%
11.92
%
11.93
%
12.03
%
Total risk-based capital
13.06
%
12.97
%
13.01
%
13.01
%
13.09
%
Shareholders' equity to assets
9.55
%
9.42
%
9.43
%
9.34
%
9.30
%
Tangible equity to tangible assets (1)
6.38
%
6.28
%
6.31
%
6.24
%
6.52
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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
              
Page 8
(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 expenses, restructuring expenses, and other-than-temporary impairment losses on available-for-sale securities 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 Ended
 
          
March 31,
           
2006
 
2005
Net income
          
$ 5,584
 
$ 11,080
Add: merger-related expenses, net of tax (1)
          
-
 
296
Add: restructuring expenses, net of tax (1)
          
324
 
-
Add: other-than-temporary impairment losses, net of tax (1)
        
4,829
 
-
Subtract: gain on branch sale, net of tax (1)
          
(1,479)
  
-
Core operating earnings
          
$ 9,258
 
$ 11,376
                 
                 
Net income per common share (3)
         
$ 0.25
 
$ 0.48
Effects of merger-related expenses, net of tax (1)
          
-
 
0.01
Effects of restructuring expenses, net of tax (1)
          
0.02
 
-
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)
          
$ 0.42
 
$ 0.49
                 
                 
Selected ratios
                
Return on average assets
          
0.52 %
  
0.99 %
Effects of merger-related expenses, net of tax (1)
          
0.00 %
  
0.02 %
Effects of restructuring expenses, net of tax (1)
          
0.03 %
  
0.00 %
Effects of other-than-temporary impairment losses, net of tax (1)
        
0.45 %
  
0.00 %
Effects of gain on branch sale, net of tax (1)
          
(0.14%)
  
0.00 %
Core return on average assets
          
0.86 %
  
1.01 %
                 
                 
Return on average equity
          
5.45 %
  
10.42 %
Effects of merger-related expenses, net of tax (1)
          
0.00 %
  
0.28 %
Effects of restructuring expenses, net of tax (1)
          
0.32 %
  
0.00 %
Effects of other-than-temporary impairment losses, net of tax (1)
        
4.71 %
  
0.00 %
Effects of gain on branch sale, net of tax (1)
          
(1.44%)
  
0.00 %
Core return on average equity
          
9.04 %
  
10.70 %
                 
                 
Efficiency ratio (2)
         
69.25 %
  
59.55 %
Effects of merger-related expenses
          
0.00 %
  
(1.08%)
Effects of restructuring expenses
          
(1.61%)
  
0.00 %
Effects of other-than-temporary impairment losses
          
(13.79%)
  
0.00 %
Effects of gain on branch sale
          
5.45 %
  
0.00 %
Core efficiency ratio
          
59.30 %
  
58.47 %
                 
                 
(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.