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


October 25, 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 Improved Third Quarter 2010 Results

Wheeling, WV… Paul M. Limbert, President and Chief Executive Officer of WesBanco, Inc. (NASDAQ Global Market: WSBC), a Wheeling, West Virginia based multi-state bank holding company, today announced earnings for the third quarter and year-to-date periods ended September 30, 2010.

Net income available to common shareholders for the quarter ended September 30, 2010 was $9.2 million as compared to $2.3 million for the third quarter of 2009, representing an increase of 294%, while diluted earnings per common share were $0.34 for the third quarter of 2010, as compared to $0.09 per common share for the third quarter of 2009.  For the nine month period, net income available to common shareholders was $25.3 million or $0.95 per common share, while for the same period in 2009, net income available to common shareholders was $11.4 million or $0.43 per common share.  Net income available to common shareholders increased 122% in the first nine months of 2010 as compared to 2009.

Mr. Limbert commented, “WesBanco has continued to improve profitability, despite the slow economic recovery.  Net income grew significantly in the first nine months of 2010, and the quarter ending September 30, 2010 is the fourth consecutive quarter of growth in net income on a linked-quarter basis.  The growth in net income was achieved through improving net interest income, improving revenues from the Trust, Securities and Mortgage business units and the significant benefits of repurchasing TARP preferred shares in the third quarter of 2009, combined with a lower provision for the quarter and continued successful cost control throughout the organization.”


Net Interest Income

Net interest income increased $1.6 million or 3.9% in the third quarter and $6.0 million or 5.1% in the year-to-date period of 2010 as compared to the same periods in 2009 due to the Bank’s ability to manage rates on its loan and deposit accounts.  Net interest income has now increased for six consecutive quarters.  The net interest margin was 3.61% in the third quarter of 2010 and 3.58% for the nine months ending September 30, 2010, an increase of 26 basis points in both periods as compared to the same periods in 2009.  The average rate on interest bearing liabilities decreased by 65 basis points in the third quarter and 61 basis points in the year-to-date period, while the rate on earning assets declined at a much slower pace of 32 basis points in the third quarter and 28 basis points in the first nine months.  Lower rates on maturing higher rate certificates of deposit and an increase in lower cost deposits, primarily money market accounts, all contributed to the improvement in the cost of funds.  In addition, the average balance for borrowings, which generally have higher interest rates, decreased
 
 
2
 
 
by $315.3 million or 39.3% in the third quarter of 2010 from the third quarter of 2009, through planned reductions utilizing the liquidity obtained through the branch acquisition in the first quarter of 2009 and pay downs on loans.  Improvements in the mix of deposits accounts, with CD’s dropping to 41.8% of total deposits and demand deposits increasing to 25.3% of total deposits, also contributed to the improved cost of funds.  The margin  also benefited from a 8.9% increase in average non-interest bearing deposit balances as a result of retail marketing campaigns and a focus on treasury management deposits from business customers.  Total borrowings excluding junior subordinated debt are down to 8.2% of total assets from 14.5% last year.


Provision and Allowance for Credit Losses

The provision for credit losses decreased $4.4 million in the third quarter and $1.1 million in the first nine months of 2010 compared to the same periods of 2009.  The provision in the current quarter was stable compared to each of the preceding quarters in 2010.
 
Net charge-offs increased $5.6 million in the third quarter compared to the second quarter of 2010 due to $10.5 million of charge-offs relating to the sale of $11.6 million of commercial real estate and $3.0 million of commercial loans at carrying value.  Previous reserves associated with these loans totaled $5.4 million.  Net charge-offs in the current quarter also include $1.5 million attributable to a foreclosure on a $2.9 million non-accrual commercial real estate loan.  The allowance for loan losses decreased $6.2 million compared to June 30, 2010 and $2.2 million compared to December 31, 2009 due primarily to the reduction of required reserves attributable to loans that were sold or otherwise charged down in the current quarter.  The allowance for loan losses was 1.78% of total loans at September 30, 2010 compared to 1.76% at December 31, 2009 and 1.74% at September 30, 2009.

Non-accrual loans decreased $11.7 million from year-end primarily as a result of the sale or foreclosure of loans in the current and prior quarters and other successful efforts to exit or reduce this category of loans.  However, total non-performing loans increased $8.8 million in the third quarter compared to December 31, 2009 due to a $20.5 million increase in renegotiated loans that continue to perform in accordance with their modified terms.  Loans past due 30 days or more and accruing interest decreased $9.4 million in the current quarter compared to June 30, 2010 and were also slightly down from year end.


Non-Interest Income and Non-Interest Expense

For the third quarter of 2010 non-interest income decreased $3.6 million and for the nine months ended September 30, 2010 it decreased $2.7 million as compared to the same period in 2009.  The quarterly decrease was principally due to a $1.8 million decline in service charges on deposits resulting from changes in overdraft fee structures mandated by recent regulatory changes, reduced income from bank owned life insurance due to a benefit claim recognized in the third quarter of 2009 and increased losses on other real estate owned.  The year-to-date decrease is due to decreases in service charges on deposits and $3.1 million in year-to-date write-downs in other real estate owned of a hotel property.  Improvements in non-interest income included trust fee growth of 12.9% in the first nine months of 2010 as compared to the first nine months of 2009 due to new business developed this year and improved market conditions.  In addition, revenue increased in most other major non-interest operating areas including electronic banking fees, securities brokerage revenue and mortgage banking.

Non-interest expenses decreased $2.0 million in the third quarter and $6.4 million year-to-date as compared to the same periods in 2009.  WesBanco significantly reduced expenses in most expense categories including salaries and wages, employee benefits, marketing and professional fees, somewhat offset by increases in foreclosure-related property expenses and occupancy expenses.  In addition, the year-to-date expense reduction
 
 
3
 
 
includes a decrease in FDIC insurance of $2.1 million primarily due to a special assessment of $2.6 million in the second quarter of 2009, partially offset by premium increases due to higher deposit levels.

Financial Condition

Total assets decreased 3.6% from last September, while decreasing only 0.6% as compared to year end 2009.  Portfolio loans decreased 5.2% from last September, primarily due to continued strategic decreases in residential real estate loans, a focus on reasonable credit terms for borrowers and compressed demand for commercial and consumer loans as a result of the slow economic recovery.  Total deposits increased by 4.1%, primarily due to a 25.8% increase in money market deposits, which, combined with smaller increases in demand and savings deposits more than offset a 6.7% decrease in CDs.  The reduction in CDs was due to planned reductions of non-relationship customers acquired with the branch acquisition in 2009.  Total borrowings, excluding junior subordinated debt, decreased by $365.2 million or 45.4% as compared to September 30, 2009 and 35.8% as compared to December 31, 2009, funded by the increased deposits and the decreases in loans.  The planned deleveraging of the balance sheet, together with weak loan demand as a result of the prolonged recession, resulted in a reduction of total average earning assets by 4.9% in the third quarter and 3.6% for the nine month period as compared to 2009.

WesBanco continues to maintain strong regulatory capital ratios of 8.17% tier I leverage, 11.64% tier I risk-based capital, and 12.89% total risk-based capital, all of which improved in each of the last four consecutive quarters and are above the “well-capitalized” standards promulgated by bank regulators. Total tangible equity to tangible assets (non-GAAP measure) improved to 6.34% at September 30, 2010 from 6.27% at June 30, 2010 and from 5.88% at year end, primarily due to balance sheet management strategies and a 3.3% increase in shareholders’ equity from December 31, 2009.  The increase in shareholders’ equity was the result of improved operating results and increases in other comprehensive income due to higher unrealized securities gains.

WesBanco is a multi-state bank holding company with total assets of approximately $5.4 billion, operating through 112 branch locations and 134 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”), including WesBanco’s Forms 10-Q for the quarters ended March 31, and June 30, 2010, 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, including, without limitation, the impact of the implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act; 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; 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
 
For the Nine Months Ended
STATEMENT OF INCOME
September 30,
  
September 30,
Interest and dividend income
2010
  
2009
  
% Change
  
2010
  
2009
  
% Change
 
Loans, including fees
 $         46,753
  
 $           50,970
  
(8.27%)
  
 $       143,038
  
 $         154,513
  
(7.43%)
 
Interest and dividends on securities:
                      
   
Taxable
               8,957
  
              10,563
  
(15.20%)
  
             26,792
  
              28,872
  
(7.20%)
   
Tax-exempt
               2,763
  
                3,595
  
(23.14%)
  
               8,609
  
              10,806
  
(20.33%)
     
Total interest and dividends on securities
             11,720
  
              14,158
  
(17.22%)
  
             35,401
  
              39,678
  
(10.78%)
 
Other interest income
                  103
  
                     84
  
22.62%
  
                  299
  
                   302
  
(0.99%)
          Total interest and dividend income
             58,576
  
              65,212
  
(10.18%)
  
          178,738
  
            194,493
  
(8.10%)
Interest Expense
                      
 
Interest bearing demand deposits
                  650
  
                   787
  
(17.41%)
  
               1,957
  
                2,163
  
(9.52%)
 
Money market deposits
               1,821
  
                1,758
  
3.58%
  
               5,949
  
                4,853
  
22.58%
 
Savings deposits
                  533
  
                   606
  
(12.05%)
  
               1,758
  
                1,784
  
(1.46%)
 
Certificates of deposit
               8,817
  
              13,062
  
(32.50%)
  
             28,299
  
              41,221
  
(31.35%)
     
Total interest expense on deposits
             11,821
  
              16,213
  
(27.09%)
  
             37,963
  
              50,021
  
(24.11%)
 
Federal Home Loan Bank borrowings
               2,576
  
                5,568
  
(53.74%)
  
             10,477
  
              16,814
  
(37.69%)
 
Other short-term borrowings
               1,207
  
                1,780
  
(32.19%)
  
               3,558
  
                5,619
  
(36.68%)
 
Junior subordinated debt owed to unconsolidated subsidiary trusts
                  986
  
                1,222
  
(19.31%)
  
               2,974
  
                4,232
  
(29.73%)
     
Total interest expense
             16,590
  
              24,783
  
(33.06%)
  
             54,972
  
              76,686
  
(28.32%)
Net interest income
             41,986
  
              40,429
  
3.85%
  
          123,766
  
            117,807
  
5.06%
 
Provision for credit losses
             11,778
  
              16,200
  
(27.30%)
  
             34,953
  
              36,019
  
(2.96%)
Net interest income after provision for credit losses
             30,208
  
              24,229
  
24.68%
  
             88,813
  
              81,788
  
8.59%
Non-interest income
                      
 
Trust fees
3,765
  
3,508
  
7.33%
  
11,459
  
10,149
  
12.91%
 
Service charges on deposits
4,897
  
6,648
  
(26.34%)
  
15,914
  
17,941
  
(11.30%)
 
Electronic banking fees
2,230
  
1,953
  
14.18%
  
6,335
  
5,554
  
14.06%
 
Net securities brokerage revenue
1,217
  
1,310
  
(7.10%)
  
3,642
  
3,110
  
17.11%
 
Bank-owned life insurance
879
  
1,873
  
(53.07%)
  
2,789
  
3,661
  
(23.82%)
 
Net securities gains
981
  
1,329
  
(26.19%)
  
3,284
  
3,933
  
(16.50%)
 
Net gains on sales of mortgage loans
985
  
820
  
20.12%
  
2,079
  
1,606
  
29.45%
 
Net loss on other real estate owned and other assets
(654)
  
29
  
(2355.17%)
  
(3,499)
  
(397)
  
781.36%
 
Other income
676
  
1,085
  
(37.70%)
  
2,599
  
1,744
  
49.03%
     
Total non-interest income
14,976
  
18,555
  
(19.29%)
  
44,602
  
47,301
  
(5.71%)
Non-interest expense
                      
 
Salaries and wages
13,749
  
13,920
  
(1.23%)
  
40,326
  
41,085
  
(1.85%)
 
Employee benefits
4,671
  
5,240
  
(10.86%)
  
14,016
  
15,008
  
(6.61%)
 
Net occupancy
2,534
  
2,572
  
(1.48%)
  
8,133
  
7,676
  
5.95%
 
Equipment
2,460
  
2,888
  
(14.82%)
  
7,440
  
8,117
  
(8.34%)
 
Marketing
1,223
  
1,486
  
(17.70%)
  
3,008
  
3,961
  
(24.06%)
 
FDIC Insurance
1,740
  
1,528
  
13.87%
  
5,028
  
7,104
  
(29.22%)
 
Amortization of intangible assets
676
  
806
  
(16.13%)
  
2,060
  
2,315
  
(11.02%)
 
Restructuring and merger-related expenses
                   (32)
  
                       2
  
(1700.00%)
  
                  175
  
                   623
  
(71.91%)
 
Other operating expenses
8,660
  
9,263
  
(6.51%)
  
25,454
  
26,174
  
(2.75%)
     
Total non-interest expense
35,681
  
37,705
  
(5.37%)
  
105,640
  
112,063
  
(5.73%)
Income before provision for income taxes
               9,503
  
                5,079
  
87.10%
  
             27,775
  
              17,026
  
63.13%
 
Provision for income taxes
                  350
  
                  (363)
  
196.42%
  
               2,473
  
                   390
  
534.10%
Net income
 $            9,153
  
 $             5,442
  
68.19%
  
 $         25,302
  
 $           16,636
  
52.09%
Preferred dividends and expenses associated with unamortized
                    
discount and issuance costs
                      -
  
                3,121
  
(100.00%)
  
                      -
  
                5,233
  
(100.00%)
Net Income available to common shareholders
 $            9,153
  
 $             2,321
  
294.36%
  
 $         25,302
  
 $           11,403
  
121.89%
                             
Taxable equivalent net interest income
 $         43,474
  
 $         42,365
  
2.62%
  
 $      128,402
  
 $      123,626
  
3.86%
                             
Per common share data
                      
Net income available per common share - basic
 $              0.34
  
 $               0.09
  
277.78%
  
 $              0.95
  
 $               0.43
  
120.93%
Net income available per common share - diluted
 $              0.34
  
 $               0.09
  
277.78%
  
 $              0.95
  
 $               0.43
  
120.93%
Dividends declared
 $              0.14
  
 $               0.14
  
0.00%
  
 $              0.42
  
 $               0.70
  
(40.00%)
Book value (period end)
            
 $            22.88
  
 $             22.30
  
2.60%
Tangible book value (period end) (1)
            
 $            12.11
  
 $             11.41
  
6.13%
Average common shares outstanding - basic
26,586,953
  
26,567,653
  
0.07%
  
26,577,302
  
26,565,621
  
0.04%
Average common shares outstanding - diluted
26,587,281
  
       26,568,081
  
0.07%
  
26,577,827
  
       26,567,174
  
0.04%
Period end common shares outstanding
     26,586,953
  
       26,567,653
  
0.07%
  
     26,586,953
  
       26,567,653
  
0.07%
                             
(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 Nine Months Ended            
       September 30,
 
          
     
2010
  
2009
  
% Change
            
                           
Return on average assets
  
                 0.62
%
                 0.40
%
56.75
%
          
Return on average equity
  
                 5.60
  
                 3.39
  
65.40
            
Return on average tangible equity (1)
11.25
  
6.48
  
73.61
            
Yield on earning assets (2)
  
                 5.11
  
                 5.39
  
(5.12)
            
Cost of interest bearing liabilities
                 1.74
  
                 2.35
  
(26.08)
            
Net interest spread (2)
  
                 3.38
  
                 3.03
  
11.44
            
Net interest margin (2)
  
                 3.58
  
                 3.32
  
7.83
            
Efficiency (2)
    
               61.06
  
               65.56
  
(6.86)
            
Average loans to average deposits
               83.32
  
               90.18
  
(7.61)
            
Annualized net loan charge-offs/average loans
                 1.44
  
                 0.95
  
51.82
            
Effective income tax rate
  
                 8.90
  
                 2.29
  
288.65
            
Trust Assets, market value at period end
 $     2,797,935
  
 $     2,579,384
  
8.47
            
                           
                           
                           
     
For the Quarter Ending
    
     
Sept. 30,
  
June 30,
  
Mar. 31,
  
Dec. 31,
  
Sept. 30,
    
     
2010
  
2010
  
2010
  
2009
  
2009
    
                           
Return on average assets
  
0.67
%
0.61
%
0.59
%
0.53
%
0.38
%
  
Return on average equity
  
5.96
  
5.47
  
5.36
  
4.85
  
3.35
    
Return on average tangible equity (1)
11.80
  
10.98
  
10.94
  
10.06
  
6.68
    
Yield on earning assets (2)
  
4.98
  
5.10
  
5.26
  
5.28
  
5.30
    
Cost of interest bearing liabilities
1.56
  
1.74
  
1.91
  
2.05
  
2.21
    
Net interest spread (2)
  
3.42
  
3.36
  
3.35
  
3.23
  
3.09
    
Net interest margin (2)
  
3.61
  
3.56
  
3.57
  
3.46
  
3.35
    
Efficiency (2)
    
61.05
  
60.36
  
61.78
  
63.09
  
61.89
    
Average loans to average deposits
80.60
  
83.37
  
86.16
  
87.22
  
87.21
    
Annualized net loan charge-offs/average loans
2.09
  
1.42
  
0.83
  
1.59
  
1.58
    
Effective income tax rate
  
3.69
  
13.20
  
9.91
  
(23.36)
  
(7.15)
    
Trust Assets, market value at period end
 $     2,797,935
  
 $     2,614,284
  
 $     2,778,687
  
 $     2,668,610
  
 $     2,579,384
    
                           
(1) See non-GAAP financial measures for additional information relating to the calculation of this item.
            
(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 6
  
(unaudited, dollars in thousands)
              
% Change
  
Balance sheets
  
September 30,
    
 
December 31,
December 31, 2009
  
Assets
      
2010
2009
% Change
    
2009
to September 30,2010
  
Cash and due from banks
  
 $        88,371
 $        75,257
         17.43
%
  
 $              72,054
                         22.65
%
Due from banks - interest bearing
  
                583
           11,999
       (95.14)
    
                 10,813
                       (94.61)
  
Securities:
                    
 
Available-for-sale, at fair value
  
         893,414
      1,417,687
       (36.98)
    
            1,261,804
                       (29.20)
  
 
Held-to-maturity (fair values of 476,710; 931 and 1,443, respectively)
         465,297
             1,450
 NM
    
                   1,450
 NM
  
   
Total securities
  
      1,358,711
      1,419,137
         (4.26)
    
            1,263,254
                           7.56
  
Loans held for sale
  
           13,132
             6,860
         91.43
    
                   9,441
                         39.10
  
Portfolio Loans:
                  
 
Commercial
  
         431,996
         463,948
         (6.89)
    
               451,688
                         (4.36)
  
 
Commercial real estate
  
      1,733,426
      1,764,791
         (1.78)
    
            1,780,221
                         (2.63)
  
 
Residential real estate
  
         635,934
         739,151
       (13.96)
    
               708,397
                       (10.23)
  
 
Home equity
  
         248,481
         235,427
           5.54
    
               239,784
                           3.63
  
 
Consumer
  
         268,265
         298,305
       (10.07)
    
               290,856
                         (7.77)
  
Total portfolio loans, net of unearned income
  
      3,318,102
      3,501,622
         (5.24)
    
            3,470,946
                         (4.40)
  
Allowance for loan losses
  
          (58,989)
         (60,755)
           2.91
    
               (61,160)
                           3.55
  
   
Net portfolio loans
  
      3,259,113
      3,440,867
         (5.28)
    
            3,409,786
                         (4.42)
  
Premises and equipment, net
  
           85,868
           91,411
         (6.06)
    
                 89,603
                         (4.17)
  
Accrued interest receivable
  
           20,882
           22,091
         (5.47)
    
                 20,048
                           4.16
  
Goodwill and other intangible assets, net
  
         286,228
         289,087
         (0.99)
    
               288,292
                         (0.72)
  
Bank-owned life insurance
  
         106,054
         102,670
           3.30
    
               103,637
                           2.33
  
Other assets
  
         143,681
         101,712
         41.26
    
               130,424
                         10.16
  
Total Assets
  
 $   5,362,623
 $   5,561,091
         (3.57)
%
  
 $         5,397,352
                         (0.64)
%
                         
Liabilities
                    
Deposits:
                    
 
Non-interest bearing demand
  
 $      562,770
 $      514,726
           9.33
%
  
 $            545,019
                           3.26
%
 
Interest bearing demand
  
         493,172
         467,085
           5.59
    
               450,697
                           9.42
  
 
Money market
  
         853,324
         678,099
         25.84
    
               714,926
                         19.36
  
 
Savings deposits
  
         520,074
         479,342
           8.50
    
               486,055
                           7.00
  
 
Certificates of deposit
  
      1,741,736
      1,866,256
         (6.67)
    
            1,777,536
                         (2.01)
  
   
Total deposits
  
      4,171,076
      4,005,508
           4.13
    
            3,974,233
                           4.95
  
Federal Home Loan Bank borrowings
  
         259,179
         567,939
       (54.36)
    
               496,393
                       (47.79)
  
Other short-term borrowings
  
         180,422
         236,884
       (23.84)
    
               188,522
                         (4.30)
  
Junior subordinated debt owed to unconsolidated subsidiary trusts
  
         106,027
         111,175
         (4.63)
    
               111,176
                         (4.63)
  
   
Total borrowings
  
         545,628
         915,998
       (40.43)
    
               796,091
                       (31.46)
  
Accrued interest payable
  
             6,888
           10,664
       (35.41)
    
                   9,208
                       (25.20)
  
Other liabilities
  
           30,744
           36,586
       (15.97)
    
                 29,104
                           5.63
  
Total liabilities
  
      4,754,336
      4,968,756
         (4.32)
    
            4,808,636
                         (1.13)
  
                         
Shareholders' Equity
                  
Preferred stock, no par value; 1,000,000 shares authorized;
                  
 
none outstanding
  
                   -
                   -
               -
    
                        -
                              -
  
Common stock, $2.0833 par value; 50,000,000 shares authorized;
                  
 
26,633,848 shares issued; 26,586,953 shares, 26,567,653
                  
 
shares and 26,567,653 shares outstanding, respectively
  
           55,487
           55,487
               -
    
                 55,487
                              -
  
Capital surplus
  
         191,902
         193,211
         (0.68)
    
               192,268
                         (0.19)
  
Retained earnings
  
         354,925
         337,211
           5.25
    
               340,788
                           4.15
  
Treasury stock (46,895; 66,195 and 66,195 shares - at cost,
                  
 
respectively)
  
            (1,063)
           (1,498)
         29.02
    
                 (1,498)
                         29.02
  
Accumulated other comprehensive income
  
             8,221
             9,195
         10.59
    
                   2,949
                       178.77
  
Deferred benefits for directors
  
            (1,185)
           (1,271)
           6.73
    
                 (1,278)
                           7.24
  
Total Shareholders' Equity
  
         608,287
         592,335
           2.69
    
               588,716
                           3.32
  
Total Liabilities and Shareholders' Equity
  
 $   5,362,623
 $   5,561,091
         (3.57)
%
  
 $         5,397,352
                         (0.64)
%
                         
NM - Not Meaningful
                  

 
WESBANCO, INC.
                          
Consolidated Selected Financial Highlights
                    
Page 7
(unaudited, dollars in thousands)
                        
Average balance sheet and
                        
net interest margin analysis
  
Three Months Ended September 30,
  
Nine Months Ended September 30,
       
2010
  
2009
  
2010
  
2009
       
Average
Average
  
Average
Average
  
Average
Average
  
Average
Average
Assets
      
Balance
Rate
  
Balance
Rate
  
Balance
Rate
  
Balance
Rate
Due from banks - interest bearing
  
 $          79,613
0.32%
  
 $          38,772
0.19%
  
 $          95,895
0.23%
  
 $          43,606
0.19%
Loans, net of unearned income (1)
  
        3,367,628
5.51%
  
        3,529,534
5.73%
  
        3,414,824
5.60%
  
        3,563,632
5.80%
Securities: (2)
                            
    Taxable
      
1,054,588
3.40%
  
1,100,345
3.84%
  
981,320
3.64%
  
991,584
3.88%
    Tax-exempt (3)
    
260,944
6.52%
  
337,130
6.56%
  
269,142
6.56%
  
336,334
6.59%
        Total securities
    
1,315,532
4.02%
  
1,437,475
4.48%
  
1,250,462
4.27%
  
1,327,918
4.57%
Federal funds sold
    
                    -
0.00%
  
                    -
0.00%
  
                    -
                    -
  
               2,755
0.24%
Other earning assets
    
             29,743
0.54%
  
             31,911
0.83%
  
             30,121
0.60%
  
             32,055
0.97%
         Total earning assets (3)
  
        4,792,516
4.98%
  
        5,037,692
5.30%
  
        4,791,302
5.11%
  
        4,969,966
5.39%
Other assets
      
629,665
    
624,389
    
633,237
    
620,730
  
Total Assets
      
 $     5,422,181
    
 $     5,662,081
    
 $     5,424,539
    
 $     5,590,696
  
                             
Liabilities and Shareholders' Equity
                        
Interest bearing demand deposits
  
 $        474,897
0.54%
  
 $        456,939
0.68%
  
 $        468,571
0.56%
  
 $        452,836
0.64%
Money market accounts
    
851,910
0.85%
  
680,008
1.03%
  
804,810
0.99%
  
604,735
1.07%
Savings deposits
      
518,272
0.41%
  
483,273
0.50%
  
508,740
0.46%
  
466,819
0.51%
Certificates of deposit
    
1,765,540
1.98%
  
1,905,645
2.72%
  
1,763,315
2.15%
  
1,906,149
2.89%
    Total interest bearing deposits
  
3,610,619
1.30%
  
        3,525,865
1.82%
  
3,545,436
1.43%
  
        3,430,539
1.95%
Federal Home Loan Bank borrowings
  
303,377
3.37%
  
           574,097
3.85%
  
393,279
3.56%
  
           583,837
3.85%
Other borrowings
    
183,895
2.60%
  
228,514
3.09%
  
181,441
2.62%
  
232,982
3.22%
Junior subordinated debt
    
109,889
3.56%
  
           111,164
4.36%
  
110,739
3.59%
  
           111,143
5.09%
      Total interest bearing liabilities
  
4,207,780
1.56%
  
4,439,640
2.21%
  
4,230,895
1.74%
  
4,358,501
2.35%
Non-interest bearing demand deposits
567,645
    
521,477
    
553,170
    
521,157
  
Other liabilities
      
37,824
    
57,260
    
36,672
    
54,405
  
Shareholders' equity
    
608,932
    
643,704
    
603,802
    
656,633
  
Total Liabilities and Shareholders' Equity
 $     5,422,181
    
 $     5,662,081
    
 $     5,424,539
    
 $     5,590,696
  
Taxable equivalent net interest spread
3.42%
    
3.09%
    
3.38%
    
3.03%
Taxable equivalent net interest margin
3.61%
    
3.35%
    
3.58%
    
3.32%
                             
(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 $0.9 million and $3.1 million for the three and nine months ended September 30, 2010, respectively,
     and $0.9 million and $3.7 million for the same periods in 2009.
                  
(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
Sept. 30,
  
June 30,
  
Mar. 31,
  
Dec. 31,
  
Sept. 30,
Interest income
2010
  
2010
  
2010
  
2009
  
2009
 
Loans, including fees
 $    46,753
  
 $                  47,911
  
 $              48,375
  
 $                49,804
  
 $              50,970
 
Interest and dividends on securities:
                  
   
Taxable
                  8,957
  
                      8,724
  
                       9,111
  
                      9,779
  
                   10,563
   
Tax-exempt
                  2,763
  
                       2,851
  
                    2,994
  
                      3,204
  
                    3,595
     
Total interest and dividends on securities
                  11,720
  
                      11,575
  
                    12,105
  
                     12,983
  
                    14,158
 
Other interest income
                      103
  
                             111
  
                          85
  
                            84
  
                          84
          Total interest and dividend income
                58,576
  
                    59,597
  
                  60,565
  
                     62,871
  
                   65,212
Interest Expense
                  
 
Interest bearing demand deposits
                     650
  
                          636
  
                        670
  
                          757
  
                        787
 
Money market deposits
                    1,821
  
                       2,185
  
                     1,943
  
                       1,834
  
                     1,758
 
Savings deposits
                     533
  
                          623
  
                        602
  
                           601
  
                        606
 
Certificates of deposit
                   8,817
  
                      9,322
  
                    10,160
  
                      11,606
  
                   13,062
     
Total interest expense on deposits
                  11,821
  
                     12,766
  
                   13,375
  
                     14,798
  
                    16,213
 
Federal Home Loan Bank borrowings
                  2,576
  
                      3,567
  
                    4,334
  
                      5,035
  
                    5,568
 
Other short-term borrowings
                   1,207
  
                        1,173
  
                      1,178
  
                       1,353
  
                     1,780
 
Junior subordinated debt owed to unconsolidated subsidiary trusts
                     986
  
                          943
  
                     1,045
  
                        1,120
  
                     1,222
     
Total interest expense
                 16,590
  
                     18,449
  
                   19,932
  
                    22,306
  
                  24,783
Net interest income
                 41,986
  
                      41,148
  
                  40,633
  
                    40,565
  
                  40,429
 
Provision for credit losses
                  11,778
  
                      11,675
  
                    11,500
  
                     14,353
  
                   16,200
Net interest income after provision for credit losses
                30,208
  
                    29,473
  
                   29,133
  
                     26,212
  
                  24,229
Non-interest income
                  
 
Trust fees
3,765
  
3,636
  
4,058
  
3,597
  
3,508
 
Service charges on deposits
4,897
  
5,701
  
5,317
  
6,430
  
6,648
 
Electronic banking fees
2,230
  
2,190
  
1,915
  
1,868
  
1,953
 
Net securities brokerage revenue
1,217
  
1,055
  
1,370
  
1,059
  
1,310
 
Bank-owned life insurance
879
  
966
  
944
  
963
  
1,873
 
Net securities gains/(losses)
981
  
898
  
1,405
  
2,113
  
1,329
 
Net gains on sales of mortgage loans
985
  
569
  
525
  
489
  
820
 
Net gain (loss) on other real estate owned and other assets
(654)
  
(1,315)
  
(1,530)
  
(350)
  
29
 
Other income
676
  
885
  
1,037
  
1,119
  
1,085
     
Total non-interest income
14,976
  
14,585
  
15,041
  
17,288
  
18,555
Non-interest expense
                  
 
Salaries and wages
13,749
  
13,362
  
13,214
  
13,314
  
13,920
 
Employee benefits
4,671
  
4,347
  
4,997
  
4,949
  
5,240
 
Net occupancy
2,534
  
2,540
  
3,060
  
2,593
  
2,572
 
Equipment
2,460
  
2,376
  
2,604
  
2,609
  
2,888
 
Marketing
1,223
  
1,155
  
630
  
1,132
  
1,486
 
FDIC Insurance
1,740
  
1,683
  
1,605
  
1,713
  
1,528
 
Amortization of intangible assets
676
  
685
  
699
  
795
  
806
 
Restructuring and merger-related expenses
                      (32)
  
                               7
  
                        200
  
                        1,192
  
                             2
 
Other operating expenses
8,660
  
8,412
  
8,385
  
9,288
  
9,263
     
Total non-interest expense
35,681
  
34,567
  
35,394
  
37,585
  
37,705
Income before provision for income taxes
                  9,503
  
                       9,491
  
                    8,780
  
                       5,915
  
                    5,079
 
Provision for income taxes
                     350
  
                       1,253
  
                        870
  
                     (1,382)
  
                      (363)
Net income
 $                9,153
  
 $                  8,238
  
 $                 7,910
  
 $                  7,297
  
 $                5,442
Preferred dividends
                        -
  
                              -
  
                            -
  
                              -
  
                      3,121
Net Income available to common shareholders
 $                9,153
  
 $                  8,238
  
 $                 7,910
  
 $                  7,297
  
 $                 2,321
                         
Taxable equivalent net interest income
 $             43,474
  
 $               42,683
  
 $             42,245
  
 $                42,291
  
 $             42,365
                         
Per common share data
                  
Net income available per common share - basic
  $              0.34
  
   $                 0.31
  
   $               0.30
  
   $                  0.27
  
   $               0.09
Net income available per common share - diluted
  $              0.34
  
   $                 0.31
  
   $               0.30
  
   $                  0.27
  
   $               0.09
Dividends declared
  $              0.14
  
   $                 0.14
  
   $               0.14
  
   $                  0.14
  
   $               0.14
Book value (period end)
  $            22.88
  
   $               22.74
  
   $             22.45
  
   $                22.16
  
   $             22.30
Tangible book value (period end) (1)
  $            12.11
  
   $               11.95
  
   $             11.63
  
   $                11.31
  
   $             11.41
Average common shares outstanding - basic
26,586,953
  
26,577,065
  
26,567,653
  
26,567,653
  
26,567,653
Average common shares outstanding - diluted
26,587,281
  
26,577,828
  
26,568,172
  
26,567,653
  
26,568,081
Period end common shares outstanding
26,586,953
  
           26,586,903
  
         26,567,653
  
           26,567,653
  
         26,567,653
Full time equivalent employees
                    1,371
  
                        1,415
  
                     1,379
  
                       1,393
  
                     1,428
                         
                         
(1) See non-GAAP financial measures for additional information relating to the calculation of this item.
            


WESBANCO, INC.
                      
Consolidated Selected Financial Highlights
                
 Page 9
  
(unaudited, dollars in thousands)
                      
       
Quarter Ended
  
       
Sept. 30,
  
June 30,
  
Mar. 31,
  
Dec. 31,
  
Sept. 30,
  
Asset quality data
  
2010
  
2010
  
2010
  
2009
  
2009
  
Non-performing assets:
                      
 
Non-accrual loans
  
 $         53,578
  
 $         65,083
  
 $         68,439
  
 $         65,273
  
 $         67,355
  
 
Renegotiated loans
  
            35,532
  
            29,472
  
            29,188
  
            14,988
  
            15,013
  
   
Total non-performing loans
  
            89,110
  
            94,555
  
            97,627
  
            80,261
  
            82,368
  
 
Other real estate and repossessed assets
              8,577
  
              6,068
  
              7,758
  
              8,691
  
              8,665
  
   
Total non-performing assets
  
 $         97,687
  
 $       100,623
  
 $       105,385
  
 $         88,952
  
 $         91,033
  
Loans past due 90 days or more and accruing
              7,316
  
              4,826
  
              5,202
  
              5,275
  
              7,769
  
   
Total non-performing assets and loans past due
                    
   
   90 days or more
  
 $       105,003
  
 $       105,449
  
 $       110,587
  
 $         94,227
  
 $         98,802
  
Loans past due 30-89 days
  
 $         23,661
  
 $         35,517
  
 $         24,784
  
 $         25,396
  
 $         24,833
  
                           
Loans past due 90 days or more and
                      
 
accruing / total loans
  
                0.22
%
                0.14
%
                0.15
%
                0.15
%
                0.22
%
Non-performing loans/total loans
  
                2.69
  
                2.78
  
                2.84
  
                2.31
  
                2.35
  
Non-performing loans and loans past due 90
                    
 
days or more/total loans
  
                2.91
  
                2.92
  
                2.99
  
                2.46
  
                2.57
  
                           
Non-performing assets/total loans, other
                      
 
real estate and repossessed assets
  
                2.94
  
                2.95
  
                3.06
  
                2.56
  
                2.59
  
Loans past due 30-89 days/total loans
  
                0.71
  
                1.04
  
                0.72
  
                0.73
  
                0.71
  
                           
Allowance for loan losses
                      
Allowance for loan losses
  
 $         58,989
  
 $         65,203
  
 $         65,625
  
 $         61,160
  
 $         60,755
  
Provision for loan losses
  
            11,491
  
            11,675
  
            11,500
  
            14,395
  
            16,200
  
Net loan and deposit account overdraft charge-offs
            17,705
  
            12,097
  
              7,035
  
            13,990
  
            14,017
  
Annualized net loan charge-offs /average loans
                2.09
 %
                1.42
 %
                0.83
 %
                1.59
 %
                1.58
%
Allowance for loan losses/total loans
  
                1.78
 %
                1.92
 %
                1.91
 %
                1.76
 %
                1.74
%
Allowance for loan losses/non-performing loans
                0.66
x
                0.69
x
                0.67
x
                0.76
x
                0.74
x
Allowance for loan losses/non-performing loans and
                    
 
loans past due 90 days or more
  
                0.61
x
                0.66
x
                0.64
x
                0.72
x
                0.67
x
                           
                           
       
Quarter Ended
  
       
Sept. 30,
  
June 30,
  
Mar. 31,
  
Dec. 31,
  
Sept. 30,
  
       
2010
  
2010
  
2010
  
2009
  
2009
  
Capital ratios
                      
Tier I leverage capital
  
                8.17
%
                8.13
%
                8.07
%
                7.86
%
                7.55
%
Tier I risk-based capital
  
              11.64
  
              11.61
  
              11.42
  
              11.12
  
              10.95
  
Total risk-based capital
  
              12.89
  
              12.87
  
              12.68
  
              12.37
  
              12.21
  
Shareholders' equity to assets
  
              11.23
  
              11.12
  
              11.05
  
              10.86
  
              11.37
  
Tangible equity to tangible assets (1)
  
                6.34
  
                6.27
  
                6.06
  
                5.88
  
                5.75
  
                           
(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
  
Year to Date
     
Sept. 30,
  
June 30,
  
Mar. 31,
  
Dec. 31,
  
Sept. 30,
  
Sept. 30,
(unaudited, dollars in thousands)
2010
  
2010
  
2010
  
2009
  
2009
  
2010
2009
Return on average tangible equity:
                        
 
Net income (annualized)
 $        36,313
  
 $       33,043
  
 $       32,081
  
 $       28,949
  
 $       21,591
  
 $       33,828
 $        22,242
 
Plus: amortization of intangibles (annualized) (1)
             1,743
  
            1,787
  
            1,842
  
            2,050
  
            2,079
  
            1,791
             2,012
 
Net income before amortization of intangibles (annualized)
           38,056
  
          34,830
  
          33,923
  
          30,999
  
          23,670
  
          35,619
           24,254
                             
 
Average total shareholder's equity
         608,932
  
        604,334
  
        598,022
  
        596,747
  
        643,700
  
        603,802
         656,633
 
Less: average goodwill and other intangibles
       (286,537)
  
      (287,221)
  
      (287,908)
  
      (288,661)
  
      (289,470)
  
      (287,217)
       (282,380)
 
Average tangible equity
         322,395
  
        317,113
  
        310,114
  
        308,086
  
        354,230
  
        316,585
         374,253
                             
Return on average tangible equity
11.80%
  
10.98%
  
10.94%
  
10.06%
  
6.68%
  
11.25%
6.48%
                             
                             
     
Period End
      
     
Sept. 30,
  
June 30,
  
Mar. 31,
  
Dec. 31,
  
Sept. 30,
      
     
2010
  
2010
  
2010
  
2009
  
2009
      
Tangible book value:
                          
 
Total shareholders' equity
 $      608,287
  
 $     604,714
  
 $     596,473
  
 $     588,716
  
 $     592,335
      
 
Less:  goodwill and other intangible assets
       (286,228)
  
      (286,908)
  
      (287,593)
  
      (288,292)
  
      (289,087)
      
 
Tangible equity
  
         322,059
  
        317,806
  
        308,880
  
        300,424
  
        303,248
      
                             
 
Common shares outstanding
    26,586,953
  
   26,586,903
  
   26,567,653
  
   26,567,653
  
   26,567,653
      
                             
Tangible book value
  
 $          12.11
  
 $         11.95
  
 $         11.63
  
 $         11.31
  
 $         11.41
      
                             
                             
Tangible equity to tangible assets:
                        
 
Total shareholders' equity
 $      608,287
  
 $     604,714
  
 $     596,473
  
 $     588,716
  
 $     592,335
      
 
Less:  goodwill and other intangible assets
       (286,228)
  
      (286,908)
  
      (287,593)
  
      (288,292)
  
      (289,087)
      
 
Tangible equity
  
         322,059
  
        317,806
  
        308,880
  
        300,424
  
        303,248
      
                             
 
Total assets
  
      5,362,623
  
     5,356,261
  
     5,380,441
  
     5,397,352
  
     5,561,091
      
 
Less:  goodwill and other intangible assets
       (286,228)
  
      (286,908)
  
      (287,593)
  
      (288,292)
  
      (289,087)
      
 
Tangible assets
  
      5,076,395
  
     5,069,353
  
     5,092,848
  
     5,109,060
  
     5,272,004
      
                             
Tangible equity to tangible assets
6.34%
  
6.27%
  
6.06%
  
5.88%
  
5.75%
      
                             
                             
                             
                             
(1) Tax effected at 35%.