EX-99 2 ex99.htm EARNING RELEASE Earning Release
NEWS FOR IMMEDIATE RELEASE
October 18, 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 Symbol: WSBC
Website: www.wesbanco.com

WesBanco Announces a 20.5% Increase in Third Quarter 2006 Diluted Earnings Per Share

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 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.
 
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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.
 
Page 3

·  
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.
 
 
Page 4


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 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; 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.


### See attached financial highlights.
 
 
                       
WESBANCO, INC.
                      
Consolidated Selected Financial Highlights
                
Page 5
(unaudited, dollars in thousands, except per share amounts)
              
                       
 
For the Three Months Ended
 
For the Nine Months Ended
 
September 30,
  
September 30,
Statement of income
2006
 
2005
 
% Change
 
2006
 
2005
 
% Change
Interest income
$ 56,942
 
$ 56,231
 
1.26%
  
$ 169,383
 
$ 167,649
 
1.03%
Interest expense
26,233
 
23,643
 
10.95%
  
76,827
 
67,692
 
13.49%
    Net interest income
30,709
 
32,588
 
(5.77%)
  
92,556
 
99,957
 
(7.40%)
Provision for loan losses
2,268
 
2,141
 
5.93%
  
7,171
 
5,903
 
21.48%
    Net interest income after provision for
                     
        loan losses
28,441
 
30,447
 
(6.59%)
  
85,385
 
94,054
 
(9.22%)
Non-interest income
                      
    Trust fees
3,711
 
3,541
 
4.80%
  
11,306
 
10,767
 
5.01%
    Service charges on deposits
4,437
 
2,834
 
56.56%
  
12,413
 
8,019
 
54.79%
    Net securities gains/(losses)
17
 
141
 
(87.94%)
  
(7,833)
  
1,962
 
(499.24%)
    Other income
3,492
 
3,324
 
5.05%
  
12,528
 
8,563
 
46.30%
    Gains on early extinguishment of debt
17
 
-
 
100.00%
  
1,064
 
-
 
100.00%
        Total non-interest income
11,674
 
9,840
 
18.64%
  
29,478
 
29,311
 
0.57%
Non-interest expense
                      
    Salaries and employee benefits
13,529
 
14,420
 
(6.18%)
  
40,260
 
42,844
 
(6.03%)
    Net occupancy
1,688
 
1,844
 
(8.46%)
  
5,567
 
5,391
 
3.26%
    Equipment
1,961
 
2,018
 
(2.82%)
  
5,984
 
6,412
 
(6.67%)
    Amortization of intangible assets
628
 
665
 
(5.56%)
  
1,894
 
2,013
 
(5.91%)
    Marketing expense
943
 
671
 
40.54%
  
3,853
 
2,600
 
48.19%
    Restructuring and merger-related expenses (1)
-
 
967
 
(100.00%)
  
540
 
1,530
 
(64.71%)
    Other operating expenses
7,180
 
7,078
 
1.44%
  
21,631
 
21,495
 
0.63%
        Total non-interest expense
25,929
 
27,663
 
(6.27%)
  
79,729
 
82,285
 
(3.11%)
    Income before provision for income taxes
14,186
 
12,624
 
12.37%
  
35,134
 
41,080
 
(14.47%)
Provision for income taxes
2,632
 
2,754
 
(4.43%)
  
6,735
 
8,872
 
(24.09%)
    Net income
$ 11,554
 
$ 9,870
 
17.06%
  
$ 28,399
 
$ 32,208
 
(11.83%)
 
                      
Taxable equivalent net interest income
$ 32,806
 
$ 35,111
 
(6.57%)
  
$ 99,155
 
$ 107,583
 
(7.83%)
 
                      
Per common share data
                      
Net income per common share - basic
$ 0.53
 
$ 0.44
 
20.45%
  
$ 1.30
 
$ 1.42
 
(8.45%)
Net income per common share - diluted
$ 0.53
 
$ 0.44
 
20.45%
  
$ 1.30
 
$ 1.42
 
(8.45%)
Dividends declared
$ 0.265
 
$ 0.26
 
1.92%
  
$ 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
21,700,328
 
22,260,541
 
(2.52%)
  
21,843,203
 
22,610,703
 
(3.39%)
Average shares outstanding - diluted
21,746,255
 
22,320,674
 
(2.57%)
  
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
1.13%
  
0.88%
  
28.06%
  
0.91%
  
0.95%
  
(4.51%)
Return on average equity
10.97%
  
9.35%
  
17.34%
  
9.11%
  
10.14%
  
(10.18%)
Yield on earning assets (2)
6.40%
  
5.78%
  
10.73%
  
6.21%
  
5.70%
  
8.95%
Cost of interest bearing liabilities
3.21%
  
2.59%
  
23.94%
  
3.06%
  
2.45%
  
24.90%
Net interest spread (2)
3.19%
  
3.19%
  
0.00%
  
3.15%
  
3.25%
  
(3.08%)
Net interest margin (2)
3.56%
  
3.46%
  
2.89%
  
3.50%
  
3.49%
  
0.29%
Efficiency (2)
58.30%
  
61.54%
  
(5.26%)
  
61.98%
  
60.11%
  
3.11%
Average loans to average deposits
98.40%
  
95.80%
  
2.71%
  
97.98%
  
96.20%
  
1.85%
Annualized net loan charge-offs/average loans
0.16%
  
0.27%
  
(39.83%)
  
0.30%
  
0.22%
  
34.40%
Effective income tax rate
18.55%
  
21.82%
  
6.30%
  
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.
                
  Page 6
  
Consolidated Selected Financial Highlights
                
(unaudited, dollars in thousands)
                
% Change
  
Balance sheet (period end)
  
September 30,
      
 
December 31,
September 30, 2006
  
Assets
  
2006
2005
  
% Change
    
2005
to Dec. 31, 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,
  
Nine months ended September 30,
   
2006
  
2005
  
2006
  
2005
   
Average
Average
 
Average
Average
 
Average
Average
 
Average
Average
Assets
  
Balance
Rate
  
Balance
Rate
  
Balance
Rate
  
Balance
Rate
Due from banks - interest bearing
  
$ 2,198
1.99%
 
$ 2,413
1.91%
  
$ 2,249
2.02%
  
$ 4,577
1.64%
Loans, net of unearned income
  
2,908,500
6.61%
 
2,931,165
6.08%
  
2,920,565
6.46%
 
2,952,946
5.99%
Securities:
                      
 
    Taxable
  
371,065
4.61%
  
641,628
3.95%
  
451,712
4.33%
  
684,657
3.94%
    Tax-exempt
  
357,080
6.71%
  
420,027
6.65%
  
376,239
6.68%
  
419,390
6.72%
        Total securities
  
728,145
5.63%
  
1,061,655
5.03%
  
827,951
5.39%
  
1,104,047
4.99%
Federal funds sold
  
-
0.00%
  
1,522
3.42%
  
2,418
4.74%
  
1,729
2.85%
Other earning assets (1)
  
26,219
5.02%
  
46,875
3.60%
  
33,483
4.79%
  
47,925
3.81%
        Total earning assets
  
3,665,062
6.40%
  
4,043,630
5.78%
  
3,786,666
6.21%
  
4,111,224
5.70%
Other assets
  
402,458
   
401,464
   
398,796
   
403,849
 
Total Assets
  
$ 4,067,520
   
$ 4,445,094
   
$ 4,185,462
   
$ 4,515,073
 
 
                        
Liabilities and Shareholders' Equity  
                    
Interest bearing demand deposits
  
$ 341,695
1.20%
  
$ 328,441
0.59%
  
$ 338,345
1.00%
  
$ 329,723
0.47%
Money market accounts
 
363,256
2.20%
  
499,088
1.95%
  
392,488
2.15%
  
543,968
1.88%
Savings deposits
  
459,463
1.36%
  
470,014
0.83%
  
463,567
1.25%
  
454,725
0.67%
Certificates of deposit
  
1,416,605
4.02%
  
1,390,833
3.18%
  
1,409,089
3.81%
  
1,373,515
3.03%
    Total interest bearing deposits
  
2,581,019
2.92%
  
2,688,376
2.23%
  
2,603,489
2.74%
  
2,701,931
2.09%
Federal Home Loan Bank borrowings
  
411,833
3.80%
  
648,272
3.44%
  
494,230
3.68%
  
687,471
3.38%
Short-term borrowings
  
157,122
4.78%
  
197,049
3.21%
  
169,860
4.45%
  
216,065
2.70%
Junior subordinated debt
  
87,638
6.45%
  
87,638
6.04%
  
87,638
6.37%
  
83,333
5.93%
    Total interest bearing liabilities
 
3,237,612
3.21%
  
3,621,335
2.59%
  
3,355,217
3.06%
  
3,688,800
2.45%
Non-interest bearing demand deposits
  
374,798
   
371,412
   
377,219
   
367,787
 
Other liabilities
  
37,283
   
33,339
   
36,155
   
34,000
 
Shareholders' equity
  
417,827
   
419,008
   
416,871
   
424,486
 
 
                        
Total Liabilities and Shareholders' Equity
  
$ 4,067,520
   
$ 4,445,094
   
$ 4,185,462
   
$ 4,515,073
 
 
                        
Taxable equivalent net interest spread  
3.19%
    
3.19%
    
3.15%
    
3.25%
Taxable equivalent net interest margin   
3.56%
    
3.46%
    
3.50%
    
3.49%
 
                        
(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 7
(unaudited, dollars in thousands, except per share amounts)
                
                   
 
Quarter Ended
 
Sept. 30,
  
June 30,
  
March 31,
  
Dec. 31,
  
Sept. 30,
Statement of income
2006
  
2006
  
2006
  
2005
  
2005
Interest income
$ 56,942
 
$ 55,994
 
$ 56,447
 
$ 57,096
 
$ 56,231
Interest expense
26,233
 
25,130
 
25,464
 
24,742
 
23,643
    Net interest income
30,709
 
30,864
 
30,983
 
32,354
 
32,588
Provision for loan losses
2,268
 
2,263
 
2,640
 
2,142
 
2,141
    Net interest income after provision for
                 
        loan losses
28,441
 
28,601
 
28,343
 
30,212
 
30,447
Non-interest income
                  
    Trust fees
3,711
 
3,537
 
4,058
 
3,538
 
3,541
    Service charges on deposits
4,437
 
4,179
 
3,797
 
3,515
 
2,834
    Net securities gains
17
 
92
 
(7,942)
  
59
 
141
    Other income
3,492
 
3,535
 
5,501
 
2,710
 
3,324
    Gains on early extinguishment of debt
17
 
1,047
 
-
 
-
 
-
        Total non-interest income
11,674
 
12,390
 
5,414
 
9,822
 
9,840
Non-interest expense
                  
    Salaries and employee benefits
13,529
 
13,315
 
13,416
 
13,446
 
14,420
    Net occupancy
1,688
 
1,866
 
2,013
 
1,776
 
1,844
    Equipment
1,961
 
1,993
 
2,030
 
1,969
 
2,018
    Core deposit intangibles
628
 
633
 
633
 
654
 
665
    Marketing expense
943
 
1,837
 
1,073
 
1,935
 
671
    Restructuring and merger-related expenses (1)
-
 
-
 
540
 
-
 
967
    Other operating expenses
7,180
 
7,344
 
7,107
 
6,855
 
7,078
        Total non-interest expense
25,929
 
26,988
 
26,812
 
26,635
 
27,663
    Income before provision for income taxes
14,186
 
14,003
 
6,945
 
13,399
 
12,624
Provision for income taxes
2,632
 
2,742
 
1,361
 
2,850
 
2,754
    Net income
$ 11,554
 
$ 11,261
 
$ 5,584
 
$ 10,549
 
$ 9,870
 
                  
Taxable equivalent net interest income
$ 32,806
 
$ 33,046
 
$ 33,303
 
$ 34,786
 
$ 35,111
 
                  
Per common share data
                  
Net income per common share - basic
$ 0.53
 
$ 0.52
 
$ 0.25
 
$ 0.48
 
$ 0.44
Net income per common share - diluted
$ 0.53
 
$ 0.52
 
$ 0.25
 
$ 0.48
 
$ 0.44
Dividends declared
$ 0.265
 
$ 0.265
 
$ 0.265
 
$ 0.26
 
$ 0.26
Book value (period end)
$ 19.45
 
$ 19.13
 
$ 18.98
 
$ 18.91
 
$ 18.78
Tangible book value (period end)
$ 12.69
 
$ 12.41
 
$ 12.28
 
$ 12.19
 
$ 12.12
Average shares outstanding - basic
21,700,328
 
21,893,943
 
21,937,948
 
22,070,906
 
22,260,541
Average shares outstanding - diluted
21,746,255
 
21,946,829
 
21,998,750
 
22,127,684
 
22,320,674
Period end shares outstanding
21,551,703
 
21,783,350
 
21,925,266
 
21,955,359
 
22,156,096
Full time equivalent employees
1,191
 
1,176
 
1,165
 
1,200
 
1,254
 
                  
Selected ratios
                  
Return on average assets
1.13%
  
1.09%
  
0.52%
  
0.95%
  
0.88%
Return on average equity
10.97%
  
10.83%
  
5.45%
  
10.09%
  
9.35%
Yield on earning assets (2)
6.40%
  
6.23%
  
6.01%
  
5.88%
  
5.78%
Cost of interest bearing liabilities
3.21%
  
3.05%
  
2.93%
  
2.74%
  
2.59%
Net interest spread (2)
3.19%
  
3.18%
  
3.08%
  
3.14%
  
3.19%
Net interest margin (2)
3.56%
  
3.54%
  
3.40%
  
3.45%
  
3.46%
Efficiency (2)
58.30%
  
59.40%
  
69.25%
  
59.71%
  
61.54%
Average loans to average deposits
98.40%
  
97.82%
  
97.78%
  
96.92%
  
95.80%
Trust Assets, market value at period end
$ 2,873,159
 
$ 2,797,321
 
$ 2,871,129
 
$ 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
                  
Page 8
 
(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
          
Page 9
(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 Ended
  
For the Nine Months 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.