EX-99.1 2 ex991.htm EARNINGS RELEASE ex991.htm
 
NEWS FOR IMMEDIATE RELEASE
 


April 29, 2010                                                                             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 80% Increase in First Quarter Earnings

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 ended March 31, 2010.

Net income available to common shareholders for the three months ended March 31, 2010 was $7.9 million, as compared to $4.4 million for the first quarter of 2009, representing an increase of 80.0% while diluted earnings per common share were $0.30 as compared to $0.17 per common share for the first quarter of 2009.   Net income available to common shareholders in the first quarter of 2009 was reduced by TARP-related preferred dividends totaling $1.1 million.

Mr. Limbert commented, “First quarter net income has shown significant progress in the operations of the Bank. Our effort to more effectively invest the recently-acquired AmTrust deposits has resulted in a significant improvement in net income.  Our efficiency ratio shows continued efforts to reduce expenses and improve revenues.  The higher non-performing loans totals are disappointing but reflect the ongoing recession and our customers’ difficulties in doing business in the current environment.  We continue to evaluate our loan portfolio and have provided additional reserves for recessionary levels of loan losses.  We are pleased with the earnings for the first quarter, helping to increase our capital ratios, which continue to be considerably above regulatory “well capitalized” levels.”

Highlights for the first quarter of 2010 include the following:


Provision for Credit Losses

The provision for credit losses increased $2.0 million compared to the first quarter of 2009, but decreased $2.9 million from the fourth quarter to $11.5 million for the first quarter of 2010.  Lower provision expense as compared to the fourth quarter reflects a 49.7% decline in charge-offs.  As compared to the first quarter of 2009, the provision expense was higher reflecting the general deterioration of credit quality due to the prolonged recession, particularly for commercial real estate loans.  Non-performing loans increased $27.1 million as compared to the first quarter of 2009, while loans past due 30 days or more decreased by $12.8 million.  Non-performing loans increased $17.4 million from year end, with most of the increase concentrated in restructured commercial real estate loans. The provision for credit losses exceeded net charge-offs by $4.5 million in the first
 
 
Page 2
 
quarter of 2010, which, coupled with the declines in loan balances, increased the allowance for loan losses to 1.91% of total loans at March 31, 2010 compared to 1.76% at December 31, 2009 and 1.52% at March 31, 2009.

Net Interest Income

Net interest income increased $2.5 million or 6.6% in the first quarter as compared to the first quarter of 2009 due to a 2.6% increase in average earning assets and a 10 basis point increase in the net interest margin to 3.57%.  The increase in average earning assets was the result of the acquisition of five branches at the end of the first quarter of 2009. The improvement in the net interest margin was due to the average rate on interest bearing liabilities decreasing by 61 basis points.  Lower rates on deposits, maturities of higher rate certificates of deposit and an increase in lower cost deposits such as money market accounts all contributed to the improvement in the cost of funds.  In addition, the average balances for higher rate borrowings decreased by $173.1 million or 20.8% from the first quarter of 2009 through planned reductions utilizing the liquidity obtained through the branch acquisition. The margin has also benefited from a 4.5% increase in average non-interest bearing deposit balances.

Non-Interest Income and Non-Interest Expense

In the first quarter of 2010 non-interest income increased 20.9% to $15.0 million compared to the first quarter of 2009.  The increase was primarily due to higher net security gains of $1.3 million, increased trust fees resulting from the improved market, and higher fees relating to deposit accounts, debit cards and customer securities sales. Partially offsetting these increases was a $1.5 million charge in the 2010 quarter for an additional write-down of a property in other real estate owned.

Non-interest expenses were up only slightly as compared with last year as operating efficiencies and lower marketing expenses were offset by higher FDIC insurance premiums, occupancy costs, health care costs and other real estate owned expenses.

Financial Condition

The balance sheet was little changed in the first quarter as compared to year end, but dropped 9.4% from last March.  Portfolio loans decreased 3.8% from last March, primarily due to decreases in residential real estate, commercial and consumer loans.  WesBanco continued to focus on improving overall credit quality in all categories of the loan portfolio, including continued strategic reductions in residential mortgage loan balances.  Total deposits decreased 3.9%, primarily though planned reductions of single service CD customers acquired from AmTrust, somewhat offset by increases in money market and savings deposits.  Federal Home Loan Bank borrowings and other short term borrowings decreased by $92.0 million or 13.4% as compared to December 31, 2009, funded by sales and maturities of securities and the aforementioned loan decreases.  This planned reduction in borrowings over the past year has resulted in an improved net interest margin as well as improved capital ratios.

WesBanco continues to maintain strong regulatory capital ratios of 8.07% tier I leverage capital, 11.42% tier I risk-based capital, and 12.68% total risk-based capital, all of which improved from the fourth quarter of 2009 and are considerably above the “well capitalized” standards promulgated by bank regulators. Total tangible common equity to tangible assets (non-GAAP measure) improved to 6.06% at March 31, 2010 from 5.88% in the fourth quarter of 2009, primarily due to balance sheet strategies and a 1.3% increase in shareholders’ equity.  The increase in equity was the result of improved first quarter results and an increase in other comprehensive income due to higher unrealized securities gains during the quarter.
 
 
Page 3

WesBanco is a multi-state bank holding company with total assets of approximately $5.4 billion, operating through 114 branch locations and 136 ATMs in West Virginia, Ohio, and Pennsylvania. WesBanco’s banking subsidiary is WesBanco Bank, Inc., headquartered in Wheeling, West Virginia. WesBanco also operates an insurance brokerage company, WesBanco Insurance Services, Inc., and a full service broker/dealer, WesBanco Securities, Inc.

Forward-looking Statements:

Forward-looking statements in this report 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 report should be read in conjunction with WesBanco’s Form 10-K for the year ended December 31, 2009 and documents subsequently filed by WesBanco 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 most recent Annual Report on Form 10-K filed with the SEC under Part I, Item 1A. 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 WesBanco 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, Financial Institution Regulatory Authority, Municipal Securities Rulemaking Board, Securities Investors Protection Corporation, and other regulatory bodies; potential legislative and federal and state regulatory actions and reform; adverse decisions of federal and state courts; fraud, scams and schemes of third parties; internet hacking; competitive conditions in the financial services industry; rapidly changing technology affecting financial services, greater than expected outflows on recent branch acquisition deposits; marketability of debt instruments and corresponding impact on fair value adjustments; and/or other external developments materially impacting WesBanco’s operational and financial performance. WesBanco does not assume any duty to update forward-looking statements.

 
WESBANCO, INC.
            
Consolidated Selected Financial Highlights
          
Page 4
(unaudited, dollars in thousands, except per share amounts)
            
                   
       
 
For the Three Months Ended
STATEMENT OF INCOME
  
March 31,
Interest and dividend income
  
2010
  
2009
  
% Change
 
Loans, including fees
  
 $         48,375
  
 $           52,059
  
(7.08%)
 
Interest and dividends on securities:
            
   
Taxable
  
               9,111
  
                7,518
  
21.19%
   
Tax-exempt
  
               2,994
  
                3,514
  
(14.80%)
     
Total interest and dividends on securities
  
             12,105
  
              11,032
  
9.73%
 
Other interest income
  
                     85
  
                   110
  
(22.73%)
          Total interest and dividend income
  
             60,565
  
              63,201
  
(4.17%)
Interest Expense
            
 
Interest bearing demand deposits
  
                  670
  
                   650
  
3.08%
 
Money market deposits
  
               1,943
  
                1,246
  
55.94%
 
Savings deposits
  
                  602
  
                   534
  
12.73%
 
Certificates of deposit
  
             10,160
  
              13,404
  
(24.20%)
     
Total interest expense on deposits
  
             13,375
  
              15,834
  
(15.53%)
 
Federal Home Loan Bank borrowings
  
               4,334
  
                5,632
  
(23.05%)
 
Other short-term borrowings
  
               1,178
  
                2,069
  
(43.06%)
 
Junior subordinated debt owed to unconsolidated subsidiary trusts
  
               1,045
  
                1,539
  
(32.10%)
     
Total interest expense
  
             19,932
  
              25,074
  
(20.51%)
Net interest income
  
             40,633
  
              38,127
  
6.57%
 
Provision for credit losses
  
             11,500
  
                9,550
  
20.42%
Net interest income after provision for credit losses
  
             29,133
  
              28,577
  
1.95%
Non-interest income
            
 
Trust fees
  
4,058
  
3,353
  
21.03%
 
Service charges on deposits
  
5,317
  
5,217
  
1.92%
 
Bank-owned life insurance
  
944
  
892
  
5.83%
 
Net securities gains
  
1,405
  
142
  
889.44%
 
Net gains on sales of mortgage loans
  
525
  
488
  
7.58%
 
Loss on other real estate owned and other assets
  
(1,530)
  
(132)
  
1059.09%
 
Other income
  
4,322
  
2,476
  
74.56%
     
Total non-interest income
  
15,041
  
12,436
  
20.95%
Non-interest expense
            
 
Salaries and wages
  
13,214
  
13,167
  
0.36%
 
Employee benefits
  
4,997
  
4,707
  
6.16%
 
Net occupancy
  
3,060
  
2,744
  
11.52%
 
Equipment
  
2,604
  
2,542
  
2.44%
 
Marketing
  
630
  
756
  
(16.67%)
 
FDIC Insurance
  
1,605
  
1,254
  
27.99%
 
Amortization of intangible assets
  
699
  
698
  
0.14%
 
Restructuring and merger-related expenses
  
                  200
  
                   429
  
(53.38%)
 
Other operating expenses
  
8,385
  
8,515
  
(1.53%)
     
Total non-interest expense
  
35,394
  
34,812
  
1.67%
Income before provision for income taxes
  
               8,780
  
                6,201
  
41.59%
 
Provision for income taxes
  
                  870
  
                   752
  
15.69%
Net income
  
 $            7,910
  
 $             5,449
  
45.16%
Preferred dividends and expenses associated with unamortized
discount and issuance costs
  
                      -
  
                1,055
  
(100.00%)
Net Income available to common shareholders
  
 $            7,910
  
 $             4,394
  
80.02%
                   
Taxable equivalent net interest income
  
 $         42,245
  
 $         40,019
  
5.56%
                   
Per common share data
            
Net income available per common share - basic
  
 $              0.30
  
 $               0.17
  
76.47%
Net income available per common share - diluted
  
 $              0.30
  
 $               0.17
  
76.47%
Dividends declared
  
 $              0.14
  
 $               0.28
  
(50.00%)
Book value (period end)
  
 $            22.45
  
 $             24.85
  
(9.66%)
Tangible book value (period end) (1)
  
 $            11.63
  
 $             14.00
  
(16.93%)
Tangible common book value (period end) (1)
  
 $            11.63
  
 $             11.27
  
3.19%
Average common shares outstanding - basic
  
26,567,653
  
26,561,490
  
0.02%
Average common shares outstanding - diluted
  
26,568,172
  
       26,563,945
  
0.02%
Period end common shares outstanding
  
     26,567,653
  
       26,567,653
  
                      -
Period end preferred shares outstanding
  
                      -
  
              75,000
  
(100.00%)
                   
(1) See non-GAAP financial measures for additional information relating to the calculation of this item.


WESBANCO, INC.
                                  
Consolidated Selected Financial Highlights
                          
Page 5
(unaudited, dollars in thousands)
                              
                                   
Selected ratios
                                  
              For the Three Months Ended              
           
 March 31,
 
            
           
2010
  
2009
  
% Change
              
                                   
Return on average assets
        
0.59
%
0.42
%
41.08
%
            
Return on average equity
        
5.36
  
3.33
  
61.10
              
Return on average tangible equity (2)
      
10.94
  
6.05
  
80.79
              
Yield on earning assets (1)
        
5.26
  
5.65
  
(6.87)
              
Cost of interest bearing liabilities
      
1.91
  
2.52
  
(24.40)
              
Net interest spread (1)
        
3.35
  
3.13
  
6.91
              
Net interest margin (1)
        
3.57
  
3.47
  
2.87
              
Efficiency (1)
          
61.78
  
66.37
  
(6.91)
              
Average loans to average deposits
      
86.16
  
99.94
  
(13.79)
              
Annualized net loan charge-offs/average loans
  
0.83
  
0.57
  
44.82
              
Effective income tax rate
        
9.91
  
12.13
  
(18.34)
              
Trust Assets, market value at period end
      
 $     2,778,687
  
 $     2,259,987
  
22.95
              
                                   
                                   
                                   
           
For the Quarter Ending
      
           
Mar. 31,
  
Dec. 31,
  
Sept. 30,
  
June 30,
  
Mar. 31,
      
           
2010
  
2009
  
2009
  
2009
  
2009
      
                                   
Return on average assets
        
0.59
%
0.53
%
0.38
%
0.39
%
0.42
%
    
Return on average equity
        
5.36
  
4.85
  
3.35
  
3.48
  
3.33
      
Return on average tangible equity (2)
      
10.94
  
10.06
  
6.68
  
6.74
  
6.05
      
Yield on earning assets (1)
        
5.26
  
5.28
  
5.30
  
5.24
  
5.65
      
Cost of interest bearing liabilities
      
1.91
  
2.05
  
2.21
  
2.34
  
2.52
      
Net interest spread (1)
        
3.35
  
3.23
  
3.09
  
2.90
  
3.13
      
Net interest margin (1)
        
3.57
  
3.46
  
3.35
  
3.17
  
3.47
      
Efficiency (1)
          
61.78
  
63.09
  
61.89
  
68.71
  
66.37
      
Average loans to average deposits
      
86.16
  
87.22
  
87.21
  
84.80
  
99.94
      
Annualized net loan charge-offs/average loans
  
0.83
  
1.59
  
1.58
  
0.68
  
0.57
      
Effective income tax rate
        
9.91
  
(23.36)
  
(7.15)
  
0.03
  
12.13
      
Trust Assets, market value at period end
    
 $     2,778,687
  
 $     2,668,610
  
 $     2,579,384
  
 $     2,368,578
  
 $     2,259,987
      
                                   
(1) 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.
              
(2) See non-GAAP financial measures for additional information relating to the calculation of this item.
                

 
WESBANCO, INC.
                    
Consolidated Selected Financial Highlights
                
Page 6
  
(unaudited, dollars in thousands)
                
% Change
  
Balance sheets
  
March 31,
      
 
December 31,
December 31, 2009
  
Assets
      
2010
2009
  
% Change
    
2009
to March 31, 2010
  
Cash and due from banks
  
 $        73,316
 $        85,932
  
       (14.68)
%
  
 $              72,054
                           1.75
%
Due from banks - interest bearing
  
           87,477
         300,984
  
       (70.94)
    
                 10,813
                       709.00
  
Securities:
                      
 
Available-for-sale, at fair value
  
      1,211,358
      1,413,524
  
       (14.30)
    
            1,261,804
                         (4.00)
  
 
Held-to-maturity (fair values of 1,146; 972 and 1,443, respectively)
             1,451
             1,450
  
               -
    
                   1,450
                              -
  
   
Total securities
  
      1,212,809
      1,414,974
  
       (14.29)
    
            1,263,254
                         (3.99)
  
Loans held for sale
  
             6,544
             6,945
  
         (5.78)
    
                   9,441
                       (30.69)
  
Portfolio Loans:
                    
 
Commercial
  
         449,255
         497,034
  
         (9.61)
    
               451,688
                         (0.54)
  
 
Commercial real estate
  
      1,782,249
      1,732,361
  
           2.88
    
            1,780,221
                           0.11
  
 
Residential real estate
  
         683,979
         817,709
  
       (16.35)
    
               708,397
                         (3.45)
  
 
Home equity
  
         241,701
         222,743
  
           8.51
    
               239,784
                           0.80
  
 
Consumer
  
         279,773
         303,902
  
         (7.94)
    
               290,856
                         (3.81)
  
Total portfolio loans, net of unearned income
  
      3,436,957
      3,573,749
  
         (3.83)
    
            3,470,946
                         (0.98)
  
Allowance for loan losses
  
          (65,625)
         (54,252)
  
         20.96
    
               (61,160)
                           7.30
  
   
Net portfolio loans
  
      3,371,332
      3,519,497
  
         (4.21)
    
            3,409,786
                         (1.13)
  
Premises and equipment, net
  
           87,729
           93,497
  
         (6.17)
    
                 89,603
                         (2.09)
  
Accrued interest receivable
  
           20,787
           21,788
  
         (4.59)
    
                 20,048
                           3.69
  
Goodwill and other intangible assets, net
  
         287,593
         288,332
  
         (0.26)
    
               288,292
                         (0.24)
  
Bank-owned life insurance
  
         104,389
         102,115
  
           2.23
    
               103,637
                           0.73
  
Other assets
  
         128,465
         106,009
  
         21.18
    
               130,424
                         (1.50)
  
Total Assets
  
 $   5,380,441
 $   5,940,073
  
         (9.42)
%
  
 $         5,397,352
                         (0.31)
%
                           
Liabilities
                      
Deposits:
                      
 
Non-interest bearing demand
  
 $      540,135
 $      511,398
  
           5.62
%
  
 $            545,019
                         (0.90)
%
 
Interest bearing demand
  
         461,075
         447,695
  
           2.99
    
               450,697
                           2.30
  
 
Money market
  
         783,872
         636,228
  
         23.21
    
               714,926
                           9.64
  
 
Savings deposits
  
         506,252
         485,583
  
           4.26
    
               486,055
                           4.16
  
 
Certificates of deposit
  
      1,750,231
      2,124,789
  
       (17.63)
    
            1,777,536
                         (1.54)
  
   
Total deposits
  
      4,041,565
      4,205,693
  
         (3.90)
    
            3,974,233
                           1.69
  
Federal Home Loan Bank borrowings
  
         416,750
         588,467
  
       (29.18)
    
               496,393
                       (16.04)
  
Other short-term borrowings
  
         176,187
         227,089
  
       (22.41)
    
               188,522
                         (6.54)
  
Junior subordinated debt owed to unconsolidated subsidiary trusts
  
         111,167
         111,131
  
           0.03
    
               111,176
                         (0.01)
  
   
Total borrowings
  
         704,104
         926,687
  
       (24.02)
    
               796,091
                       (11.55)
  
Accrued interest payable
  
             7,318
           13,163
  
       (44.40)
    
                   9,208
                       (20.52)
  
Other liabilities
  
           30,981
         134,329
  
       (76.94)
    
                 29,104
                           6.45
  
Total liabilities
  
      4,783,968
      5,279,872
  
         (9.39)
    
            4,808,636
                         (0.51)
  
                           
Shareholders' Equity
                    
Fixed Rate Cumulative Perpetual Preferred Stock, Series A,
                    
 
no par value; 1,000,000 shares authorized; 0 shares, 75,000
                    
 
and 0 shares issued and outstanding, respectively
  
                   -
           72,441
  
     (100.00)
    
                        -
                              -
  
Common stock, $2.0833 par value; 50,000,000 shares authorized;
                    
 
26,633,848 shares issued; 26,567,653 shares, 26,567,653
                    
 
shares and 26,567,653 shares outstanding, respectively
  
           55,487
           55,487
  
               -
    
                 55,487
                              -
  
Capital surplus
  
         192,268
         193,182
  
         (0.47)
    
               192,268
                              -
  
Retained earnings
  
         344,978
         341,361
  
           1.06
    
               340,788
                           1.23
  
Treasury stock (66,195; 66,195 and 66,195 shares - at cost,
                    
 
respectively)
  
            (1,498)
           (1,498)
  
               -
    
                 (1,498)
                              -
  
Accumulated other comprehensive income
  
             6,516
                470
  
    1,286.37
    
                   2,949
                       120.95
  
Deferred benefits for directors
  
            (1,278)
           (1,242)
  
         (2.88)
    
                 (1,278)
                              -
  
Total Shareholders' Equity
  
         596,473
         660,201
  
         (9.65)
    
               588,716
                           1.32
  
Total Liabilities and Shareholders' Equity
  
 $   5,380,441
 $   5,940,073
  
         (9.42)
%
  
 $         5,397,352
                         (0.31)
%


WESBANCO, INC.
                  
Consolidated Selected Financial Highlights
              
Page 7
(unaudited, dollars in thousands)
                
Average balance sheet and
                  
net interest margin analysis
      
Three Months Ended March 31,
         
2010
  
2009
         
Average
Average
  
Average
Average
Assets
        
Balance
Rate
  
Balance
Rate
Due from banks - interest bearing
      
 $          93,515
0.14%
  
 $          35,902
0.01%
Loans, net of unearned income (1)
      
        3,456,171
5.68%
  
        3,598,710
5.87%
Securities: (2)
                  
    Taxable
        
918,329
3.97%
  
653,516
4.60%
    Tax-exempt (3)
        
279,432
6.59%
  
328,275
6.59%
        Total securities
        
1,197,761
4.58%
  
981,791
5.27%
Federal funds sold
        
                                  -
                                   -
  
               8,356
0.24%
Other earning assets
        
             30,506
0.69%
  
             32,341
1.30%
         Total earning assets (3)
      
        4,777,953
5.26%
  
        4,657,100
5.65%
Other assets
        
636,388
    
599,712
  
Total Assets
        
 $     5,414,341
    
 $     5,256,812
  
                   
Liabilities and Shareholders' Equity
                
Interest bearing demand deposits
      
 $        459,145
0.59%
  
 $        432,378
0.61%
Money market accounts
        
746,671
1.06%
  
484,425
1.04%
Savings deposits
        
495,874
0.49%
  
432,432
0.50%
Certificates of deposit
        
1,771,825
2.33%
  
1,736,511
3.13%
    Total interest bearing deposits
      
3,473,515
1.56%
  
        3,085,746
2.08%
Federal Home Loan Bank borrowings
      
471,925
3.72%
  
           593,244
3.85%
Other borrowings
        
186,254
2.56%
  
238,070
3.52%
Junior subordinated debt
        
111,171
3.81%
  
           111,121
5.62%
      Total interest bearing liabilities
      
4,242,865
1.91%
  
4,028,181
2.52%
Non-interest bearing demand deposits
      
538,052
    
514,973
  
Other liabilities
        
35,402
    
49,381
  
Shareholders' equity
        
598,022
    
664,277
  
Total Liabilities and Shareholders' Equity
      
 $     5,414,341
    
 $     5,256,812
  
Taxable equivalent net interest spread
        
3.35%
    
3.13%
Taxable equivalent net interest margin
        
3.57%
    
3.47%
                   
(1) Gross of allowance for loan losses and net of unearned income.  Includes non-accrual and loans held for sale.
     Loan fees included in interest income on loans are not material.
  
(2) Average yields on available-for sale securities are calculated based on amortized cost.
(3) Taxable equivalent basis is calculated on tax-exempt securities using a rate of 35% for each period presented.


WESBANCO, INC.
                  
Consolidated Selected Financial Highlights
                
 Page 8
(unaudited, dollars in thousands, except per share amounts)
                  
       
Quarter Ended
Statement of Income
Mar. 31,
  
Dec. 31,
  
Sept. 30,
  
June 30,
  
Mar. 31,
Interest income
2010
  
2009
  
2009
  
2009
  
2009
 
Loans, including fees
 $    48,375
  
 $                49,804
  
 $              50,970
  
 $                 51,482
  
 $              52,059
 
Interest and dividends on securities:
                  
   
Taxable
                    9,111
  
                      9,779
  
                   10,563
  
                      10,791
  
                     7,518
   
Tax-exempt
                  2,994
  
                      3,204
  
                    3,595
  
                      3,698
  
                     3,514
     
Total interest and dividends on securities
                  12,105
  
                     12,983
  
                    14,158
  
                     14,489
  
                    11,032
 
Other interest income
                       85
  
                            84
  
                          84
  
                           108
  
                          110
          Total interest and dividend income
                60,565
  
                     62,871
  
                   65,212
  
                    66,079
  
                   63,201
Interest Expense
                  
 
Interest bearing demand deposits
                     670
  
                          757
  
                        787
  
                          727
  
                        650
 
Money market deposits
                   1,943
  
                       1,834
  
                     1,758
  
                       1,848
  
                     1,246
 
Savings deposits
                     602
  
                           601
  
                        606
  
                          644
  
                        534
 
Certificates of deposit
                  10,160
  
                      11,606
  
                   13,062
  
                     14,755
  
                   13,404
     
Total interest expense on deposits
                 13,375
  
                     14,798
  
                    16,213
  
                     17,974
  
                   15,834
 
Federal Home Loan Bank borrowings
                  4,334
  
                      5,035
  
                    5,568
  
                       5,614
  
                    5,632
 
Other short-term borrowings
                    1,178
  
                       1,353
  
                     1,780
  
                       1,770
  
                    2,069
 
Junior subordinated debt owed to unconsolidated subsidiary trusts
                   1,045
  
                        1,120
  
                     1,222
  
                       1,470
  
                     1,539
     
Total interest expense
                 19,932
  
                    22,306
  
                  24,783
  
                    26,828
  
                  25,074
Net interest income
                40,633
  
                    40,565
  
                  40,429
  
                     39,251
  
                   38,127
 
Provision for credit losses
                  11,500
  
                     14,353
  
                   16,200
  
                     10,269
  
                    9,550
Net interest income after provision for credit losses
                 29,133
  
                     26,212
  
                  24,229
  
                    28,982
  
                  28,577
Non-interest income
                  
 
Trust fees
4,058
  
3,597
  
3,508
  
3,288
  
3,353
 
Service charges on deposits
5,317
  
6,430
  
6,648
  
6,076
  
5,217
 
Bank-owned life insurance
944
  
963
  
1,873
  
897
  
892
 
Net securities gains/(losses)
1,405
  
2,113
  
1,329
  
2,462
  
142
 
Net gains on sales of mortgage loans
525
  
489
  
820
  
297
  
488
 
Loss on other real estate owned and other assets
(1,530)
  
(350)
  
29
  
(294)
  
(132)
 
Other income
4,322
  
4,046
  
4,348
  
3,583
  
2,476
     
Total non-interest income
15,041
  
17,288
  
18,555
  
16,309
  
12,436
Non-interest expense
                  
 
Salaries and wages
13,214
  
13,314
  
13,920
  
13,998
  
13,167
 
Employee benefits
4,997
  
4,949
  
5,240
  
5,061
  
4,707
 
Net occupancy
3,060
  
2,593
  
2,572
  
2,361
  
2,744
 
Equipment
2,604
  
2,609
  
2,888
  
2,687
  
2,542
 
Marketing
630
  
1,132
  
1,486
  
1,720
  
756
 
FDIC Insurance
1,605
  
1,713
  
1,528
  
4,322
  
1,254
 
Amortization of intangible assets
699
  
795
  
806
  
812
  
698
 
Restructuring and merger-related expenses
                     200
  
                        1,192
  
                             2
  
                           192
  
                        429
 
Other operating expenses
8,385
  
9,288
  
9,263
  
8,392
  
8,515
     
Total non-interest expense
35,394
  
37,585
  
37,705
  
39,545
  
34,812
Income before provision for income taxes
                  8,780
  
                       5,915
  
                    5,079
  
                      5,746
  
                     6,201
 
Provision for income taxes
                     870
  
                     (1,382)
  
                      (363)
  
                               2
  
                        752
Net income
 $                7,910
  
 $                  7,297
  
 $                5,442
  
 $                  5,744
  
 $                5,449
Preferred dividends
                        -
  
                              -
  
                      3,121
  
                       1,057
  
                     1,055
Net Income available to common shareholders
 $                7,910
  
 $                  7,297
  
 $                 2,321
  
 $                  4,687
  
 $                4,394
                         
Taxable equivalent net interest income
 $           42,245
  
 $              42,291
  
 $           42,365
  
 $              41,242
  
 $            40,019
                         
Per common share data
                  
Net income available per common share - basic
 $                     0.30
  
 $                       0.27
  
 $                     0.09
  
 $                       0.18
  
 $                      0.17
Net income available per common share - diluted
 $                     0.30
  
 $                       0.27
  
 $                     0.09
  
 $                       0.18
  
 $                      0.17
Dividends declared
 $                     0.14
  
 $                       0.14
  
 $                     0.14
  
 $                       0.28
  
 $                      0.28
Book value (period end)
 $                  22.45
  
 $                     22.16
  
 $                   22.30
  
 $                     24.61
  
 $                    24.85
Tangible book value (period end) (1)
 $                  11.63
  
 $                     11.31
  
 $                   11.41
  
 $                     13.69
  
 $                    14.00
Tangible common book value (period end) (1)
 $                  11.63
  
 $                     11.31
  
 $                   11.41
  
 $                     10.96
  
 $                    11.27
Average common shares outstanding - basic
26,567,653
  
26,567,653
  
26,567,653
 
26,567,653
  
26,561,490
Average common shares outstanding - diluted
26,568,172
  
26,567,653
  
26,568,081
 
26,568,752
  
26,563,945
Period end common shares outstanding
26,567,653
  
           26,567,653
  
         26,567,653
  
           26,567,653
  
         26,567,653
Period end preferred shares outstanding
                           -
  
                              -
  
                            -
  
                    75,000
  
                  75,000
Full time equivalent employees (2)
                   1,379
  
                       1,393
  
                     1,428
  
                       1,473
  
                     1,448
                         
                         
(1) See non-GAAP financial measures for additional information relating to the calculation of this item.
            
(2) The quarter ended March 31, 2009 excludes AmTrust employees which were acquired on March 27, 2009.
            

WESBANCO, INC.
                      
Consolidated Selected Financial Highlights
                
 Page 9
  
(unaudited, dollars in thousands)
                      
       
Quarter Ended
  
       
Mar. 31,
  
Dec. 31,
  
Sept. 30,
  
June 30,
  
Mar. 31,
  
Asset quality data
  
2010
  
2009
  
2009
  
2009
  
2009
  
Non-performing assets:
                      
 
Non-accrual loans
  
 $         68,439
  
 $         65,273
  
 $         67,355
  
 $         70,021
  
 $         55,959
  
 
Renegotiated loans
  
            29,188
  
            14,988
  
            15,013
  
            11,586
  
            14,580
  
   
Total non-performing loans
  
            97,627
  
            80,261
  
            82,368
  
            81,607
  
            70,539
  
 
Other real estate and repossessed assets
              7,758
  
              8,691
  
              8,665
  
              2,892
  
              2,755
  
   
Total non-performing assets
  
 $       105,385
  
 $         88,952
  
 $         91,033
  
 $         84,499
  
 $         73,294
  
Loans past due 90 days or more and accruing
              5,202
  
              5,275
  
              7,769
  
            10,163
  
              5,656
  
   
Total non-performing assets and loans past due
                    
   
   90 days or more
  
 $       110,587
  
 $         94,227
  
 $         98,802
  
 $         94,662
  
 $         78,950
  
Loans past due 30-89 days
  
 $         24,784
  
 $         25,396
  
 $         24,833
  
 $         26,371
  
 $         37,178
  
                           
Loans past due 90 days or more and
                      
 
accruing / total loans
  
                0.15
%
                0.15
%
                0.22
%
                0.29
%
                0.16
%
Non-performing loans/total loans
  
                2.84
  
                2.31
  
                2.35
  
                2.30
  
                1.97
  
Non-performing loans and loans past due 90
                    
 
days or more/total loans
  
                2.99
  
                2.46
  
                2.57
  
                2.59
  
                2.13
  
                           
Non-performing assets/total loans, other
                      
 
real estate and repossessed assets
  
                3.06
  
                2.56
  
                2.59
  
                2.38
  
                2.05
  
Loans past due 30-89 days/total loans
  
                0.72
  
                0.73
  
                0.71
  
                0.74
  
                1.04
  
                           
Allowance for loan losses
                      
Allowance for loan losses
  
 $         65,625
  
 $         61,160
  
 $         60,755
  
 $         58,572
  
 $         54,252
  
Provision for loan losses
  
            11,500
  
            14,395
  
            16,200
  
            10,400
  
              9,550
  
Net loan and deposit account overdraft charge-offs
              7,035
  
            13,990
  
            14,017
  
              6,080
  
              5,101
  
Annualized net loan charge-offs /average loans
                0.83
%
                1.59
%
                1.58
%
                0.68
%
                0.57
%
Allowance for loan losses/total loans
  
                1.91
%
                1.76
%
                1.74
%
                1.65
%
                1.52
%
Allowance for loan losses/non-performing loans
                0.67
 x
                0.76
 x
                0.74
 x
                0.72
 x
                0.77
 x
Allowance for loan losses/non-performing loans and
                    
 
loans past due 90 days or more
  
                0.64
 x
                0.72
 x
                0.67
 x
                0.64
 x
                0.71
 x
                           
                           
       
Quarter Ended
  
       
Mar. 31,
  
Dec. 31,
  
Sept. 30,
  
June 30,
  
Mar. 31,
  
       
2010
  
2009
  
2009
  
2009
  
2009
  
Capital ratios
                      
Tier I leverage capital
  
                8.07
%
                7.86
%
                7.55
%
                8.61
%
                9.72
%
Tier I risk-based capital
  
              11.42
  
              11.12
  
              10.95
  
              12.18
  
              12.70
  
Total risk-based capital
  
              12.68
  
              12.37
  
              12.21
  
              13.43
  
              13.95
  
Shareholders' equity to assets
  
              11.05
  
              10.86
  
              11.37
  
              11.32
  
              12.64
  
Tangible equity to tangible assets (1)
  
                6.06
  
                5.88
  
                5.75
  
                6.68
  
                6.58
  
Tangible common equity to tangible assets (1)
                6.06
  
                5.88
  
                5.75
  
                5.35
  
                5.30
  
                           
(1) See non-GAAP financial measures for additional information relating to the calculation of this item.
          


NON-GAAP FINANCIAL MEASURES
                
Page 10
The following non-GAAP financial measures used by WesBanco provide information useful to investors in understanding WesBanco’s operating performance and trends, and facilitate comparisons with the performance of WesBanco’s peers. The following tables summarize the non-GAAP financial measures derived from amounts reported in WesBanco’s financial statements.
       
Three Months Ended
       
Mar. 31,
  
Dec. 31,
  
Sept. 30,
  
June 30,
  
Mar. 31,
(unaudited, dollars in thousands)
2010
  
2009
  
2009
  
2009
  
2009
Return on average tangible equity:
                  
 
Net income (annualized)
 $        32,081
  
 $       28,949
  
 $       21,591
  
 $       23,039
  
 $       22,099
 
Plus: amortization of intangibles (annualized) (1)
             1,842
  
            2,050
  
            2,079
  
            2,116
  
            1,839
 
Net income before amortization of intangibles (annualized)
           33,923
  
          30,999
  
          23,670
  
          25,155
  
          23,938
                         
 
Average total shareholders' equity
         598,022
  
        596,747
  
        643,700
  
        662,162
  
        664,277
 
Less: average goodwill and other intangibles
       (287,908)
  
      (288,661)
  
      (289,470)
  
      (288,780)
  
      (268,662)
 
Average tangible equity
         310,114
  
        308,086
  
        354,230
  
        373,382
  
        395,615
                         
Return on average tangible equity
10.94%
  
10.06%
  
6.68%
  
6.74%
  
6.05%
                         
                         
       
Period End
       
Mar. 31,
  
Dec. 31,
  
Sept. 30,
  
June 30,
  
Mar. 31,
       
2010
  
2009
  
2009
  
2009
  
2009
Tangible book value:
                    
 
Total shareholders' equity
 $      596,473
  
 $     588,716
  
 $     592,335
  
 $     653,720
  
 $     660,201
 
Less:  goodwill and other intangible assets
       (287,593)
  
      (288,292)
  
      (289,087)
  
      (289,893)
  
      (288,332)
 
Tangible equity
  
         308,880
  
        300,424
  
        303,248
  
        363,827
  
        371,869
                         
 
Common shares outstanding
    26,567,653
  
   26,567,653
  
   26,567,653
  
   26,567,653
  
   26,567,653
                         
Tangible book value
  
 $          11.63
  
 $         11.31
  
 $         11.41
  
 $         13.69
  
 $         14.00
                         
                         
Tangible equity to tangible assets:
                  
 
Total shareholders' equity
 $      596,473
  
 $     588,716
  
 $     592,335
  
 $     653,720
  
 $     660,201
 
Less:  goodwill and other intangible assets
       (287,593)
  
      (288,292)
  
      (289,087)
  
      (289,893)
  
      (288,332)
 
Tangible equity
  
         308,880
  
        300,424
  
        303,248
  
        363,827
  
        371,869
                         
 
Total assets
  
      5,380,441
  
     5,397,352
  
     5,561,091
  
     5,736,941
  
     5,940,073
 
Less:  goodwill and other intangible assets
       (287,593)
  
      (288,292)
  
      (289,087)
  
      (289,893)
  
      (288,332)
 
Tangible assets
  
      5,092,848
  
     5,109,060
  
     5,272,004
  
     5,447,048
  
     5,651,741
                         
Tangible equity to tangible assets
6.06%
  
5.88%
  
5.75%
  
6.68%
  
6.58%
                         
                         
Tangible common equity to tangible assets:
                  
 
Total shareholders' equity
 $      596,473
  
 $     588,716
  
 $     592,335
  
 $     653,720
  
 $     660,201
 
Less:  goodwill and other intangible assets
       (287,593)
  
      (288,292)
  
      (289,087)
  
      (289,893)
  
      (288,332)
 
Less:  preferred shareholders' equity
                   -
  
                  -
  
                  -
  
        (72,560)
  
        (72,441)
 
Tangible common equity
         308,880
  
        300,424
  
        303,248
  
        291,267
  
        299,428
                         
 
Total assets
  
      5,380,441
  
     5,397,352
  
     5,561,091
  
     5,736,941
  
     5,940,073
 
Less:  goodwill and other intangible assets
       (287,593)
  
      (288,292)
  
      (289,087)
  
      (289,893)
  
      (288,332)
 
Tangible assets
  
      5,092,848
  
     5,109,060
  
     5,272,004
  
     5,447,048
  
     5,651,741
                         
Tangible common equity to tangible assets
6.06%
  
5.88%
  
5.75%
  
5.35%
  
5.30%
                         
                         
Tangible common book value:
                  
 
Total shareholders' equity
 $      596,473
  
 $     588,716
  
 $     592,335
  
 $     653,720
  
 $     660,201
 
Less:  goodwill and other intangible assets
       (287,593)
  
      (288,292)
  
      (289,087)
  
      (289,893)
  
      (288,332)
 
Less:  preferred shareholders' equity
                   -
  
                  -
  
                  -
  
        (72,560)
  
        (72,441)
 
Tangible common equity
         308,880
  
        300,424
  
        303,248
  
        291,267
  
        299,428
                         
 
Common shares outstanding
    26,567,653
  
   26,567,653
  
   26,567,653
  
   26,567,653
  
   26,567,653
                         
Tangible common book value
 $          11.63
  
 $         11.31
  
 $         11.41
  
 $         10.96
  
 $         11.27
                         
(1) Tax effected at 35%.