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


January 26, 2011                                                                                                                                   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 Increased Earnings

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 increased earnings for the fourth quarter and year ended December 31, 2010.

Net income available to common shareholders for the quarter ended December 31, 2010 was $10.3 million as compared to $7.3 million for the fourth quarter of 2009, representing an increase of 41.3%, while earnings per share were $0.39 for the fourth quarter of 2010, as compared to $0.27 per share for the fourth quarter of 2009, an increase of 44.4%.  For all of 2010, net income available to common shareholders was $35.6 million or $1.34 per common share, while for 2009, net income available to common shareholders was $18.7 million or $0.70 per common share.  Diluted earnings per common share were up 91.4% year-over-year.

Mr. Limbert commented, “The 2010 financial performance reflects continued improvement from the difficult economic climate of the two previous years. The challenges of a slow recovery and increased regulatory burden have been mitigated by successes in managing our core businesses.  The quarter ending December 31, 2010 is the fifth consecutive quarter of growth in net income and per share earnings on a linked-quarter basis.  The growth in net income was achieved through a lower provision for credit losses for both the quarter and for the year, consistent improvement in net interest income, higher gross revenues from the Trust, Securities and Mortgage business units, continued cost control throughout the organization resulting in lower overall expenses, and the significant benefits of repurchasing our TARP preferred shares in the third quarter of 2009.”

Mr. Limbert further remarked, “Our 2010 performance has also been noticed nationally, helping us stand out as compared to peer banks.  WesBanco received recognition in two recent national investment publications.  In the December 14, 2010 edition of the online publication “The Street”, WesBanco was included in their list of “The 10 Best Bank Stocks for 2010” based on our increase in stock price approximating 56% on a year to date basis.  In addition, “Forbes” magazine recently recognized WesBanco in its list of “America’s 100 Best Banks”, ranking it 38th in the 2010 listing.”

Net Interest Income

Net interest income increased $1.8 million or 4.3% in the fourth quarter and $7.7 million or 4.9% for all of 2010 as compared to the same periods in 2009 due to the Bank’s ability to manage rates on its loans and other earning assets, while seeing significant improvement in the cost of funds for both deposits and other borrowings.  Net
 
 
Page 2
 
 
interest income has now increased for each of the past seven quarters.  The net interest margin improved to 3.66% in the fourth quarter of 2010 and 3.60% for the year, an increase of 20 basis points and 24 basis points, respectively, as compared to the same periods in 2009.  The average rate on interest bearing liabilities decreased by 57 basis points in the fourth quarter and 61 basis points for the year, while the rate on earning assets declined at a much slower pace of 34 basis points in the fourth quarter and 29 basis points for the year.  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 costs, decreased by $281.8 million or 38.7% in the fourth quarter of 2010 from the fourth quarter of 2009, through planned reductions utilizing the liquidity obtained through pay downs on loans and increased deposits.  Improvements in the mix of deposit accounts also contributed to the improved cost of funds, with average CD’s decreasing to 41.2% of total average deposits, from 45.6% in the fourth quarter of 2009, and average demand deposits increasing to 25.9% of total average deposits from 24.8% in 2009.  The increase in total interest bearing and non-interest bearing demand deposits was primarily due to an 11.0% increase in average non-interest bearing deposit balances as a result of retail marketing campaigns and customer incentives, as well as a focus on increasing treasury management products and services from business customers.  Total borrowings, excluding junior subordinated debt, are down to 8.2% of total assets from 12.7% last year.

Provision and Allowance for Credit Losses

The provision for credit losses decreased $4.7 million in the fourth quarter and $5.8 million for all of 2010 compared to the same periods of 2009.  The provision in the current quarter also decreased $2.2 million as compared to the third quarter of 2010.  The provision for all of 2010 was 103% of net charge-offs for the year.

Net charge-offs decreased $7.3 million in the fourth quarter as compared to the fourth quarter of 2009, and $11.1 million as compared to the third quarter. The consecutive quarter decrease was primarily due to $10.5 million of charge-offs in the third quarter related to a sale of certain impaired commercial and commercial real estate loans totaling $14.6 million, and the year-over-year improvement was due to a better overall economic environment and a $3.4 million charge in the fourth quarter of 2009 relating to one commercial loan involving borrower fraud.  Net charge-offs for all of 2010 increased $4.3 million, primarily due to the third quarter loan sale.

Non-accrual loans at December 31, 2010 decreased $4.8 million from the third quarter of 2010 and $16.5 million as compared to December 31, 2009, as a result of the third quarter sale of loans and other continuing workout efforts to reduce this category of loans.  However, renegotiated loans increased $12.0 million for the fourth quarter and $32.5 million for the year primarily due to rate or other term-related modifications granted to borrowers on construction, commercial real estate and residential mortgage loans.

The allowance for loan losses increased $2.1 million compared to September 30, 2010 and was relatively unchanged as compared to December 31, 2009.  The allowance for loan losses was 1.86% of total loans at December 31, 2010 compared to 1.78% at September 30, 2010 and 1.76% at December 31, 2009.  The allowance for loan losses at December 31, 2010 as compared to the third quarter includes higher specific reserves on several non-accrual and impaired loans, as well as an increase in the allocation for residential real estate loans, which more recently have experienced higher delinquencies and partial charge-offs.  However, offsetting these factors, the general allowance for commercial and industrial loans decreased, as management’s estimate of loss reflected a declining trend in historical loss rates.
 
 
Page 3

 
Non-Interest Income and Non-Interest Expense

For the fourth quarter of 2010, total non-interest income decreased $2.3 million, and for the year ended December 31, 2010 it decreased $5.0 million, as compared to the same periods in 2009.  The quarterly decrease was principally due to a $2.0 million decline in net security gains and a $1.7 million decline in service charges on deposits resulting from regulatory changes which led to fewer customer overdraft transactions.  These decreases were partially offset by a $0.8 million or 21.7% increase in trust fees from new business, market improvements, and fourth quarter revisions to fee schedules; and a $0.8 million increase in bank-owned life insurance due to a benefit claim recognized in the fourth quarter.  The year-to-date decrease is due to decreases in service charges on deposits, decreases in net security gains, and $3.1 million in write-downs in other real estate owned, primarily for an owned hospitality-related property.  Improvements in non-interest income year-to-date included trust fee growth of 15.2% as well as increases in most other major non-interest operating areas including a 14.3% increase in electronic banking fees, a 9.5% increase in securities brokerage income and a 37.8% increase in mortgage banking income.

Non-interest expense decreased $2.1 million, or 5.5% in the fourth quarter and $8.5 million or 5.7% year-to-date as compared to the same periods in 2009.  The decrease in the fourth quarter is due to restructuring expenses of $1.2 million in the fourth quarter of 2009 relating to personnel reductions and impairment on certain premises held for sale.  In addition, employee benefits expense decreased $0.7 million from lower pension and health insurance costs.  These decreases were partially offset by $0.8 million of increased salaries and wages.  WesBanco took actions in 2010 resulting in significant reductions in costs for many expense categories, including employee benefits, equipment, marketing, professional fees and restructuring expenses, somewhat offset by increases in foreclosure-related property management expenses.  In addition, the year-to-date expense reduction 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.

Financial Condition

Total assets were comparable to year-end 2009.  Portfolio loans decreased 5.3% for the year primarily due to continued strategic reductions in residential real estate loans, the sale of certain impaired loans, a focus on maintaining credit quality and reduced demand for commercial and consumer loans.

Total deposits increased by 5.0% as compared to year end 2009, primarily due to a 19.6% increase in money market deposits, which combined with smaller increases in demand and savings deposits more than offset a 3.5% decrease in CDs.  The reduction in CDs was due to planned reductions of non-relationship customers acquired with a large branch acquisition in 2009.  Total borrowings, excluding junior subordinated debt, decreased by $243.9 million or 35.6% as compared to December 31, 2009, funded by the increased deposits and the decreases in loans.  The planned de-leveraging 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 of 2.0% in the fourth quarter and 3.2% for the twelve month period as compared to 2009.

WesBanco continued to improve already strong regulatory capital ratios of 8.35% tier I leverage, 11.92% tier I risk-based capital, and 13.17% total risk-based capital, all of which improved in each of the last five consecutive quarters while both consolidated and bank-level regulatory capital ratios are well above the applicable “well-capitalized” standards promulgated by bank regulators.  Total tangible equity to tangible assets (non-GAAP measure) was 6.33% at December 31, 2010, nearly unchanged from September 30, 2010, but an improvement of 45 basis points from 5.88% at year-end 2009, primarily due to balance sheet management strategies and a 3.1% increase in shareholders’ equity.  The increase in shareholders’ equity was the result of improved operating results net of dividends declared, partially offset by decreases in other comprehensive income due to lower
 
 
Page 4
 
 
unrealized securities gains at year end as certain term market interest rates rose in the fourth quarter.  Total dividends declared for the year were $14.9 million or 41.8% of net income.

WesBanco is a multi-state bank holding company with total assets of approximately $5.4 billion, operating through 112 branch locations and 132 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, June 30, and September 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 fourth 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 5
(unaudited, dollars in thousands, except per share amounts)
                    
                             
       
For the Three Months Ended
 
For the Year Ended
STATEMENT OF INCOME
  December 31,  
December 31,
Interest and dividend income
2010
  
2009
  
% Change
  
2010
  
2009
  
% Change
 
Loans, including fees
 $             46,341
  
 $           49,804
  
(6.95%)
  
 $       189,380
  
 $         204,317
  
(7.31%)
 
Interest and dividends on securities:
                      
   
Taxable
                  8,589
  
                9,779
  
(12.17%)
  
             35,375
  
              38,651
  
(8.48%)
   
Tax-exempt
                  2,799
  
                3,204
  
(12.64%)
  
             11,408
  
              14,010
  
(18.57%)
     
Total interest and dividends on securities
                11,388
  
              12,983
  
(12.29%)
  
             46,783
  
              52,661
  
(11.16%)
 
Other interest income
                        66
  
                     84
  
(21.43%)
  
                  365
  
                   386
  
(5.44%)
          Total interest and dividend income
                57,795
  
              62,871
  
(8.07%)
  
          236,528
  
            257,364
  
(8.10%)
Interest Expense
                      
 
Interest bearing demand deposits
                      610
  
                   757
  
(19.42%)
  
               2,561
  
                2,921
  
(12.32%)
 
Money market deposits
                  1,581
  
                1,834
  
(13.79%)
  
               7,529
  
                6,687
  
12.59%
 
Savings deposits
                      484
  
                   601
  
(19.47%)
  
               2,242
  
                2,385
  
(6.00%)
 
Certificates of deposit
                  8,518
  
              11,606
  
(26.61%)
  
             36,817
  
              52,827
  
(30.31%)
     
Total interest expense on deposits
                11,193
  
              14,798
  
(24.36%)
  
             49,149
  
              64,820
  
(24.18%)
 
Federal Home Loan Bank borrowings
                  2,244
  
                5,035
  
(55.43%)
  
             12,721
  
              21,849
  
(41.78%)
 
Other short-term borrowings
                  1,214
  
                1,353
  
(10.27%)
  
               4,774
  
                6,971
  
(31.52%)
 
Junior subordinated debt owed to unconsolidated subsidiary trusts
                      818
  
                1,120
  
(26.96%)
  
               3,792
  
                5,352
  
(29.15%)
     
Total interest expense
                15,469
  
              22,306
  
(30.65%)
  
             70,436
  
              98,992
  
(28.85%)
Net interest income
                42,326
  
              40,565
  
4.34%
  
          166,092
  
            158,372
  
4.87%
 
Provision for credit losses
                  9,625
  
              14,353
  
(32.94%)
  
             44,578
  
              50,372
  
(11.50%)
Net interest income after provision for credit losses
                32,701
  
              26,212
  
24.76%
  
          121,514
  
            108,000
  
12.51%
Non-interest income
                      
 
Trust fees
4,377
  
3,597
  
21.68%
  
15,835
  
13,746
  
15.20%
 
Service charges on deposits
4,731
  
6,430
  
(26.42%)
  
20,645
  
24,372
  
(15.29%)
 
Electronic banking fees
2,147
  
1,868
  
14.94%
  
8,482
  
7,422
  
14.28%
 
Net securities brokerage revenue
922
  
1,059
  
(12.94%)
  
4,563
  
4,169
  
9.45%
 
Net insurance services revenue
653
  
613
  
6.53%
  
2,352
  
2,329
  
0.99%
 
Bank-owned life insurance
1,716
  
963
  
78.19%
  
4,505
  
4,623
  
(2.55%)
 
Net securities gains
78
  
2,113
  
(96.31%)
  
3,362
  
6,046
  
(44.39%)
 
Net gains on sales of mortgage loans
806
  
489
  
64.83%
  
2,885
  
2,094
  
37.77%
 
Net loss on other real estate owned and other assets
(629)
  
(350)
  
(79.71%)
  
(4,128)
  
(747)
  
(452.61%)
 
Other income
                      196
  
506
  
(61.26%)
  
1,098
  
535
  
105.23%
     
Total non-interest income
14,997
  
17,288
  
(13.25%)
  
59,599
  
64,589
  
(7.73%)
Non-interest expense
                      
 
Salaries and wages
14,127
  
13,314
  
6.11%
  
54,452
  
54,399
  
0.10%
 
Employee benefits
4,299
  
4,949
  
(13.13%)
  
18,315
  
19,957
  
(8.23%)
 
Net occupancy
2,595
  
2,593
  
0.08%
  
10,728
  
10,269
  
4.47%
 
Equipment
2,475
  
2,609
  
(5.14%)
  
9,914
  
10,726
  
(7.57%)
 
Marketing
1,179
  
1,132
  
4.15%
  
4,187
  
5,094
  
(17.81%)
 
FDIC Insurance
1,653
  
1,713
  
(3.50%)
  
6,681
  
8,817
  
(24.23%)
 
Amortization of intangible assets
669
  
795
  
(15.85%)
  
2,729
  
3,110
  
(12.25%)
 
Restructuring and merger-related expenses
                         -
  
                1,192
  
(100.00%)
  
                  175
  
                1,815
  
(90.36%)
 
Other operating expenses
8,514
  
9,288
  
(8.33%)
  
33,971
  
35,461
  
(4.20%)
     
Total non-interest expense
35,511
  
37,585
  
(5.52%)
  
141,152
  
149,648
  
(5.68%)
Income before provision for income taxes
                12,187
  
                5,915
  
106.04%
  
             39,961
  
              22,941
  
74.19%
 
Provision for income taxes
                  1,877
  
               (1,382)
  
235.82%
  
               4,350
  
                  (992)
  
538.51%
Net income
 $             10,310
  
 $             7,297
  
41.29%
  
 $         35,611
  
 $           23,933
  
48.79%
Preferred dividends and expenses associated with unamortized
                    
discount and issuance costs
                         -
  
                      -
  
                      -
  
                      -
  
                5,233
  
(100.00%)
Net Income available to common shareholders
 $             10,310
  
 $             7,297
  
41.29%
  
 $         35,611
  
 $           18,700
  
90.43%
                             
Taxable equivalent net interest income
 $            43,833
  
 $         42,291
  
3.65%
  
 $      172,234
  
 $      165,916
  
3.81%
                             
Per common share data
                      
Net income available per common share - basic
 $                 0.39
  
 $               0.27
  
44.44%
  
 $              1.34
  
 $               0.70
  
91.43%
Net income available per common share - diluted
 $                 0.39
  
 $               0.27
  
44.44%
  
 $              1.34
  
 $               0.70
  
91.43%
Dividends declared
 $                 0.14
  
 $               0.14
  
                      -
  
 $              0.56
  
 $               0.84
  
(33.33%)
Book value (period end)
            
 $            22.83
  
 $             22.16
  
3.02%
Tangible book value (period end) (1)
            
 $            12.09
  
 $             11.31
  
6.90%
Average common shares outstanding - basic
26,586,953
  
26,567,653
  
0.07%
  
26,579,735
  
26,566,133
  
0.05%
Average common shares outstanding - diluted
26,587,471
  
       26,567,653
  
0.07%
  
26,580,293
  
       26,567,291
  
0.05%
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 6
(unaudited, dollars in thousands)
                          
                               
Selected ratios
                              
            For the Year Ended            
         
December 31,
            
         
2010
  
2009
  
% Change
            
                               
Return on average assets
      
                 0.66
%
                 0.43
%
53.49
%
          
Return on average equity
      
                 5.88
  
                 3.73
  
57.64
            
Return on average tangible equity (1)
    
11.72
  
7.26
  
61.43
            
Yield on earning assets (2)
      
                 5.07
  
                 5.36
  
(5.41)
            
Cost of interest bearing liabilities
    
                 1.67
  
                 2.28
  
(26.75)
            
Net interest spread (2)
      
                 3.40
  
                 3.08
  
10.39
            
Net interest margin (2)
      
                 3.60
  
                 3.36
  
7.14
            
Efficiency (2)
        
               60.89
  
               64.92
  
(6.21)
            
Average loans to average deposits
    
               82.14
  
               89.42
  
(8.14)
            
Annualized net loan charge-offs/average loans
  
                 1.28
  
                 1.10
  
16.36
            
Effective income tax rate
      
               10.89
  
               (4.33)
  
351.50
            
Trust Assets, market value at period end
    
 $     2,943,786
  
 $     2,668,610
  
10.31
            
                               
                               
                               
         
For the Quarter Ending
    
         
Dec. 31,
  
Sept. 30,
  
June 30,
  
Mar. 31,
  
Dec. 31,
    
         
2010
  
2010
  
2010
  
2010
  
2009
    
                               
Return on average assets
      
0.76
%
0.67
%
0.61
%
0.59
%
0.53
%
  
Return on average equity
      
6.69
  
5.96
  
5.47
  
5.36
  
4.85
    
Return on average tangible equity (1)
    
13.09
  
11.80
  
10.98
  
10.94
  
10.06
    
Yield on earning assets (2)
      
4.94
  
4.98
  
5.10
  
5.26
  
5.28
    
Cost of interest bearing liabilities
    
1.48
  
1.56
  
1.74
  
1.91
  
2.05
    
Net interest spread (2)
      
3.46
  
3.42
  
3.36
  
3.35
  
3.23
    
Net interest margin (2)
      
3.66
  
3.61
  
3.56
  
3.57
  
3.46
    
Efficiency (2)
        
60.36
  
61.05
  
60.36
  
61.78
  
63.09
    
Average loans to average deposits
    
78.69
  
80.60
  
83.37
  
86.16
  
87.22
    
Annualized net loan charge-offs/average loans
  
0.80
  
2.09
  
1.42
  
0.83
  
1.59
    
Effective income tax rate
      
15.40
  
3.69
  
13.20
  
9.91
  
(23.36)
    
Trust Assets, market value at period end
  
 $     2,943,786
  
 $     2,797,935
  
 $     2,614,284
  
 $     2,778,687
  
 $     2,668,610
    
                               
(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 7
  
(unaudited, dollars in thousands)
            
% Change
  
Balance sheets
December 31,
    
 
September 30,
September 30, 2010
  
Assets
    
2010
2009
% Change
    
2010
to December 31, 2010
  
Cash and due from banks
 $        57,242
 $        72,054
       (20.56)
%
  
 $              88,371
                       (35.23)
 %
Due from banks - interest bearing
           21,894
           10,813
       102.48
    
                      583
                    3,655.43
  
Securities:
                  
 
Available-for-sale, at fair value
         957,481
      1,261,804
       (24.12)
    
               893,414
                           7.17
  
 
Held-to-maturity (fair values of 465,902; 1,443 and 476,710, respectively)
         468,710
             1,450
 NM
    
               465,297
                           0.73
  
   
Total securities
      1,426,191
      1,263,254
         12.90
    
            1,358,711
                           4.97
  
Loans held for sale
           10,800
             9,441
         14.40
    
                 13,132
                       (17.75)
  
Portfolio Loans:
                
 
Commercial real estate
      1,757,249
      1,780,221
         (1.29)
    
            1,733,426
                           1.37
  
 
Commercial and industrial
         412,726
         451,688
         (8.63)
    
               431,996
                         (4.46)
  
 
Residential real estate
         608,693
         708,397
       (14.07)
    
               635,934
                         (4.28)
  
 
Home equity
         249,423
         239,784
           4.02
    
               248,481
                           0.38
  
 
Consumer
         260,585
         290,856
       (10.41)
    
               268,265
                         (2.86)
  
Total portfolio loans, net of unearned income
      3,288,676
      3,470,946
         (5.25)
    
            3,318,102
                         (0.89)
  
Allowance for loan losses
          (61,051)
         (61,160)
           0.18
    
               (58,989)
                         (3.50)
  
   
Net portfolio loans
      3,227,625
      3,409,786
         (5.34)
    
            3,259,113
                         (0.97)
  
Premises and equipment, net
           85,928
           89,603
         (4.10)
    
                 85,868
                           0.07
  
Accrued interest receivable
           20,536
           20,048
           2.44
    
                 20,882
                         (1.66)
  
Goodwill and other intangible assets, net
         285,559
         288,292
         (0.95)
    
               286,228
                         (0.23)
  
Bank-owned life insurance
         106,502
         103,637
           2.76
    
               106,054
                           0.42
  
Other assets
         119,181
         130,424
         (8.62)
    
               143,681
                       (17.05)
  
Total Assets
 $   5,361,458
 $   5,397,352
         (0.67)
%
  
 $         5,362,623
                         (0.02)
 %
                       
Liabilities
                  
Deposits:
                  
 
Non-interest bearing demand
 $      591,052
 $      545,019
           8.45
%
  
 $            562,770
                           5.03
 %
 
Interest bearing demand
         481,129
         450,697
           6.75
    
               493,172
                         (2.44)
  
 
Money market
         854,836
         714,926
         19.57
    
               853,324
                           0.18
  
 
Savings deposits
         530,701
         486,055
           9.19
    
               520,074
                           2.04
  
 
Certificates of deposit
      1,714,705
      1,777,536
         (3.53)
    
            1,741,736
                         (1.55)
  
   
Total deposits
      4,172,423
      3,974,233
           4.99
    
            4,171,076
                           0.03
  
Federal Home Loan Bank borrowings
         253,606
         496,393
       (48.91)
    
               259,179
                         (2.15)
  
Other short-term borrowings
         187,385
         188,522
         (0.60)
    
               180,422
                           3.86
  
Junior subordinated debt owed to unconsolidated subsidiary trusts
         106,034
         111,176
         (4.62)
    
               106,027
                           0.01
  
   
Total borrowings
         547,025
         796,091
       (31.29)
    
               545,628
                           0.26
  
Accrued interest payable
             6,559
             9,208
       (28.77)
    
                   6,888
                         (4.78)
  
Other liabilities
           28,588
           29,104
         (1.77)
    
                 30,744
                         (7.01)
  
Total liabilities
      4,754,595
      4,808,636
         (1.12)
    
            4,754,336
                           0.01
  
                       
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 26,586,953 shares outstanding, respectively
           55,487
           55,487
               -
    
                 55,487
                              -
  
Capital surplus
         191,987
         192,268
         (0.15)
    
               191,902
                           0.04
  
Retained earnings
         361,513
         340,788
           6.08
    
               354,925
                           1.86
  
Treasury stock (46,895; 66,195 and 46,895 shares - at cost,
                
 
respectively)
            (1,063)
           (1,498)
         29.02
    
                 (1,063)
                              -
  
Accumulated other comprehensive income
                131
             2,949
       (95.55)
    
                   8,221
                       (98.40)
  
Deferred benefits for directors
            (1,192)
           (1,278)
           6.70
    
                 (1,185)
                         (0.63)
  
Total Shareholders' Equity
         606,863
         588,716
           3.08
    
               608,287
                         (0.23)
  
Total Liabilities and Shareholders' Equity
 $   5,361,458
 $   5,397,352
         (0.67)
%
  
 $         5,362,623
                         (0.02)
 %
                       
                       
NM - Not Meaningful
                

WESBANCO, INC.
                            
Consolidated Selected Financial Highlights
                      
Page 8
(unaudited, dollars in thousands)
                          
Average balance sheet and
                          
net interest margin analysis
    
Three Months Ended December 31,
  
Year Ended December 31,
         
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
    
 $          44,325
0.31%
  
 $          47,412
0.20%
  
 $          82,380
0.24%
  
 $          44,565
0.19%
Loans, net of unearned income (1)
    
        3,300,182
5.57%
  
        3,498,133
5.65%
  
        3,385,928
5.59%
  
        3,547,122
5.76%
Securities: (2)
                              
    Taxable
        
1,117,493
3.07%
  
990,989
3.95%
  
1,015,643
3.48%
  
991,434
3.90%
    Tax-exempt (3)
      
275,560
6.25%
  
298,251
6.61%
  
270,759
6.48%
  
326,735
6.60%
        Total securities
      
1,393,053
3.70%
  
1,289,240
4.56%
  
1,286,402
4.11%
  
1,318,169
4.57%
Federal funds sold
        
                    -
0.00%
  
                    -
0.00%
  
                    -
                    -
  
               2,060
0.24%
Other earning assets
      
             29,000
0.44%
  
             31,238
0.77%
  
             29,838
0.56%
  
             31,849
0.92%
         Total earning assets (3)
    
        4,766,560
4.94%
  
        4,866,023
5.28%
  
        4,784,548
5.07%
  
        4,943,765
5.36%
Other assets
        
628,277
    
627,422
    
631,922
    
622,418
  
Total Assets
        
 $     5,394,837
    
 $     5,493,445
    
 $     5,416,470
    
 $     5,566,183
  
                               
Liabilities and Shareholders' Equity
                          
Interest bearing demand deposits
    
 $        495,920
0.49%
  
 $        462,023
0.65%
  
 $        474,979
0.54%
  
 $        455,151
0.64%
Money market accounts
      
854,250
0.73%
  
703,065
1.04%
  
817,272
0.92%
  
629,520
1.06%
Savings deposits
        
522,823
0.37%
  
482,364
0.49%
  
512,289
0.44%
  
470,737
0.51%
Certificates of deposit
      
1,729,554
1.95%
  
1,830,379
2.52%
  
1,754,805
2.10%
  
1,887,051
2.80%
    Total interest bearing deposits
    
3,602,547
1.23%
  
        3,477,831
1.69%
  
3,559,345
1.38%
  
        3,442,459
1.88%
Federal Home Loan Bank borrowings
    
257,323
3.46%
  
           528,971
3.78%
  
359,010
3.54%
  
           570,008
3.83%
Other borrowings
        
189,778
2.54%
  
199,920
2.68%
  
183,542
2.60%
  
224,649
3.10%
Junior subordinated debt
      
106,031
3.06%
  
           111,179
4.00%
  
109,552
3.46%
  
           111,152
4.82%
      Total interest bearing liabilities
    
4,155,679
1.48%
  
4,317,901
2.05%
  
4,211,449
1.67%
  
4,348,268
2.28%
Non-interest bearing demand deposits
591,612
    
533,097
    
562,763
    
524,167
  
Other liabilities
        
36,049
    
45,700
    
36,516
    
52,211
  
Shareholders' equity
      
611,497
    
596,747
    
605,742
    
641,537
  
Total Liabilities and Shareholders' Equity
  
 $     5,394,837
    
 $     5,493,445
    
 $     5,416,470
    
 $     5,566,183
  
Taxable equivalent net interest spread
  
3.46%
    
3.23%
    
3.40%
    
3.08%
Taxable equivalent net interest margin
3.66%
    
3.46%
    
3.60%
    
3.36%
                               
(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 $1.0 million and $4.2 million for the three months and year ended December 31, 2010, respectively,
     and $0.9 million and $4.6 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 9
(unaudited, dollars in thousands, except per share amounts)
                  
       
Quarter Ended
Statement of Income
Dec. 31,
  
Sept. 30,
  
June 30,
  
Mar. 31,
  
Dec. 31,
Interest income
2010
  
2010
  
2010
  
2010
  
2009
 
Loans, including fees
 $    46,341
  
 $                46,753
  
 $                47,911
  
 $                48,375
  
 $              49,804
 
Interest and dividends on securities:
                  
   
Taxable
                  8,589
  
                      8,957
  
                    8,724
  
                         9,111
  
                    9,779
   
Tax-exempt
                  2,799
  
                      2,763
  
                     2,851
  
                      2,994
  
                    3,204
     
Total interest and dividends on securities
                  11,388
  
                      11,720
  
                    11,575
  
                      12,105
  
                   12,983
 
Other interest income
                       66
  
                           103
  
                           111
  
                            85
  
                          84
          Total interest and dividend income
                57,795
  
                    58,576
  
                  59,597
  
                    60,565
  
                   62,871
Interest Expense
                  
 
Interest bearing demand deposits
                      610
  
                          650
  
                        636
  
                          670
  
                        757
 
Money market deposits
                    1,581
  
                        1,821
  
                     2,185
  
                       1,943
  
                     1,834
 
Savings deposits
                     484
  
                          533
  
                        623
  
                          602
  
                         601
 
Certificates of deposit
                   8,518
  
                       8,817
  
                    9,322
  
                      10,160
  
                    11,606
     
Total interest expense on deposits
                  11,193
  
                       11,821
  
                   12,766
  
                     13,375
  
                   14,798
 
Federal Home Loan Bank borrowings
                  2,244
  
                      2,576
  
                    3,567
  
                      4,334
  
                    5,035
 
Other short-term borrowings
                    1,214
  
                       1,207
  
                      1,173
  
                        1,178
  
                     1,353
 
Junior subordinated debt owed to unconsolidated subsidiary trusts
                      818
  
                          986
  
                        943
  
                       1,045
  
                      1,120
     
Total interest expense
                 15,469
  
                     16,590
  
                   18,449
  
                     19,932
  
                  22,306
Net interest income
                42,326
  
                     41,986
  
                    41,148
  
                    40,633
  
                  40,565
 
Provision for credit losses
                  9,625
  
                      11,778
  
                    11,675
  
                      11,500
  
                   14,353
Net interest income after provision for credit losses
                 32,701
  
                    30,208
  
                  29,473
  
                     29,133
  
                   26,212
Non-interest income
                  
 
Trust fees
4,377
  
3,765
  
3,636
  
4,058
  
3,597
 
Service charges on deposits
4,731
  
4,897
  
5,701
  
5,317
  
6,430
 
Electronic banking fees
2,147
  
2,230
  
2,190
  
1,915
  
1,868
 
Net securities brokerage revenue
922
  
1,217
  
1,055
  
1,370
  
1,059
 
Net insurance services revenue
653
  
657
  
561
  
482
  
613
 
Bank-owned life insurance
1,716
  
879
  
966
  
944
  
963
 
Net securities gains/(losses)
78
  
981
  
898
  
1,405
  
2,113
 
Net gains on sales of mortgage loans
806
  
985
  
569
  
525
  
489
 
Net gain (loss) on other real estate owned and other assets
(629)
  
(654)
  
(1,315)
  
(1,530)
  
(350)
 
Other income
196
  
19
  
324
  
555
  
506
     
Total non-interest income
14,997
  
14,976
  
14,585
  
15,041
  
17,288
Non-interest expense
                  
 
Salaries and wages
14,127
  
13,749
  
13,362
  
13,214
  
13,314
 
Employee benefits
4,299
  
4,671
  
4,347
  
4,997
  
4,949
 
Net occupancy
2,595
  
2,534
  
2,540
  
3,060
  
2,593
 
Equipment
2,475
  
2,460
  
2,376
  
2,604
  
2,609
 
Marketing
1,179
  
1,223
  
1,155
  
630
  
1,132
 
FDIC Insurance
1,653
  
1,740
  
1,683
  
1,605
  
1,713
 
Amortization of intangible assets
669
  
676
  
685
  
699
  
795
 
Restructuring and merger-related expenses
                        -
  
                          (32)
  
                             7
  
                          200
  
                      1,192
 
Other operating expenses
8,514
  
8,660
  
8,412
  
8,385
  
9,288
     
Total non-interest expense
35,511
  
35,681
  
34,567
  
35,394
  
37,585
Income before provision for income taxes
                  12,187
  
                      9,503
  
                     9,491
  
                      8,780
  
                     5,915
 
Provision for income taxes
                   1,877
  
                          350
  
                     1,253
  
                          870
  
                   (1,382)
Net income
 $              10,310
  
 $                 9,153
  
 $                8,238
  
 $                  7,910
  
 $                7,297
Preferred dividends
                        -
  
                              -
  
                            -
  
                              -
  
                            -
Net Income available to common shareholders
 $              10,310
  
 $                 9,153
  
 $                8,238
  
 $                  7,910
  
 $                7,297
                         
Taxable equivalent net interest income
 $             43,833
  
 $            43,474
  
 $           42,683
  
 $             42,245
  
 $           42,291
                         
Per common share data
                  
Net income available per common share - basic
 $                  0.39
  
 $                0.34
  
 $                0.31
  
 $                  0.30
  
 $                0.27
Net income available per common share - diluted
 $                  0.39
  
 $                0.34
  
 $                0.31
  
 $                  0.30
  
 $                0.27
Dividends declared
 $                  0.14
  
 $                0.14
  
 $                0.14
  
 $                  0.14
  
 $                0.14
Book value (period end)
 $                22.83
  
 $              22.88
  
 $              22.74
  
 $                22.45
  
 $              22.16
Tangible book value (period end) (1)
 $                12.09
  
 $              12.11
  
 $              11.95
  
 $                11.63
  
 $              11.31
Average common shares outstanding - basic
26,586,953
  
26,586,953
  
26,577,065
  
26,567,653
  
26,567,653
Average common shares outstanding - diluted
26,587,471
  
26,587,281
  
26,577,828
  
26,568,172
  
26,567,653
Period end common shares outstanding
26,586,953
  
           26,586,953
  
         26,586,903
  
           26,567,653
  
         26,567,653
Full time equivalent employees
                   1,377
  
                        1,371
  
                      1,415
  
                       1,379
  
                     1,393
                         
                         
(1) See non-GAAP financial measures for additional information relating to the calculation of this item.
            

 
WESBANCO, INC.
                      
Consolidated Selected Financial Highlights
                
 Page 10
  
(unaudited, dollars in thousands)
                      
       
Quarter Ended
  
       
Dec. 31,
  
Sept. 30,
  
June 30,
  
Mar. 31,
  
Dec. 31,
  
Asset quality data
  
2010
  
2010
  
2010
  
2010
  
2009
  
Non-performing assets:
                      
 
Non-accrual loans
  
 $         48,820
  
 $         53,578
  
 $         65,083
  
 $         68,439
  
 $         65,273
  
 
Renegotiated loans
  
            47,483
  
            35,532
  
            29,472
  
            29,188
  
            14,988
  
   
Total non-performing loans
  
            96,303
  
            89,110
  
            94,555
  
            97,627
  
            80,261
  
 
Other real estate and repossessed assets
              8,069
  
              8,577
  
              6,068
  
              7,758
  
              8,691
  
   
Total non-performing assets
  
 $       104,372
  
 $         97,687
  
 $       100,623
  
 $       105,385
  
 $         88,952
  
Loans past due 90 days or more and accruing
              7,683
  
              7,316
  
              4,826
  
              5,202
  
              5,275
  
   
Total non-performing assets and loans past due
                    
   
   90 days or more
  
 $       112,055
  
 $       105,003
  
 $       105,449
  
 $       110,587
  
 $         94,227
  
Loans past due 30-89 days
  
 $         24,774
  
 $         23,661
  
 $         35,517
  
 $         24,784
  
 $         25,396
  
                           
Loans past due 90 days or more and
                      
 
accruing / total loans
  
                0.23
%
                0.22
%
                0.14
%
                0.15
%
                0.15
 %
Non-performing loans/total loans
  
                2.93
  
                2.69
  
                2.78
  
                2.84
  
                2.31
  
Non-performing loans and loans past due 90
                    
 
days or more/total loans
  
                3.16
  
                2.91
  
                2.92
  
                2.99
  
                2.46
  
                           
Non-performing assets/total loans, other
                      
 
real estate and repossessed assets
  
                3.17
  
                2.94
  
                2.95
  
                3.06
  
                2.56
  
Loans past due 30-89 days/total loans
  
                0.75
  
                0.71
  
                1.04
  
                0.72
  
                0.73
  
                           
Allowance for loan losses
                      
Allowance for loan losses
  
 $         61,051
  
 $         58,989
  
 $         65,203
  
 $         65,625
  
 $         61,160
  
Provision for loan losses
  
              8,703
  
            11,491
  
            11,675
  
            11,500
  
            14,395
  
Provision for losses on loan commitments
  
                 922
  
                 287
  
                   -
  
                   -
  
                 (42)
  
Total provision for credit losses
  
              9,625
  
            11,778
  
            11,675
  
            11,500
  
            14,353
  
Net loan and deposit account overdraft charge-offs
              6,641
  
            17,705
  
            12,097
  
              7,035
  
            13,990
  
Annualized net loan charge-offs /average loans
                0.80
 %
                2.09
 %
                1.42
 %
                0.83
 %
                1.59
 %
Allowance for loan losses/total loans
  
                1.86
 %
                1.78
 %
                1.92
 %
                1.91
 %
                1.76
 %
Allowance for loan losses/non-performing loans
                0.63
x
                0.66
x
                0.69
x
                0.67
x
                0.76
x
Allowance for loan losses/non-performing loans and
                    
 
loans past due 90 days or more
  
                0.59
x
                0.61
x
                0.66
x
                0.64
x
                0.72
x
                           
                           
       
Quarter Ended
  
       
Dec. 31,
  
Sept. 30,
  
June 30,
  
Mar. 31,
  
Dec. 31,
  
       
2010
  
2010
  
2010
  
2010
  
2009
  
Capital ratios
                      
Tier I leverage capital
  
                8.35
%
                8.17
%
                8.13
%
                8.07
 %
                7.86
 %
Tier I risk-based capital
  
              11.92
  
              11.64
  
              11.61
  
              11.42
  
              11.12
  
Total risk-based capital
  
              13.17
  
              12.89
  
              12.87
  
              12.68
  
              12.37
  
Shareholders' equity to assets
  
              11.33
  
              11.23
  
              11.12
  
              11.05
  
              10.86
  
Tangible equity to tangible assets (1)
  
                6.33
  
                6.34
  
                6.27
  
                6.06
  
                5.88
  
                           
(1) See non-GAAP financial measures for additional information relating to the calculation of this item.
          


NON-GAAP FINANCIAL MEASURES
                      
Page 11
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
       
Dec. 31,
  
Sept. 30,
  
June 30,
  
Mar. 31,
  
Dec. 31,
  
Dec. 31,
(unaudited, dollars in thousands)
2010
  
2010
  
2010
  
2010
  
2009
  
2010
2009
Return on average tangible equity:
                        
 
Net income (annualized)
 $        40,903
  
 $       36,313
  
 $       33,043
  
 $       32,081
  
 $       28,949
  
 $       35,611
 $        23,933
 
Plus: amortization of intangibles (annualized) (1)
             1,724
  
            1,743
  
            1,787
  
            1,842
  
            2,050
  
            1,774
             2,022
 
Net income before amortization of intangibles (annualized)
           42,627
  
          38,056
  
          34,830
  
          33,923
  
          30,999
  
          37,385
           25,955
                               
 
Average total shareholders' equity
         611,497
  
        608,932
  
        604,334
  
        598,022
  
        596,747
  
        605,742
         641,537
 
Less: average goodwill and other intangibles
       (285,860)
  
      (286,537)
  
      (287,221)
  
      (287,908)
  
      (288,661)
  
      (286,875)
       (283,963)
 
Average tangible equity
         325,637
  
        322,395
  
        317,113
  
        310,114
  
        308,086
  
        318,867
         357,574
                               
Return on average tangible equity
13.09%
  
11.80%
  
10.98%
  
10.94%
  
10.06%
  
11.72%
7.26%
                               
                               
       
Period End
      
       
Dec. 31,
  
Sept. 30,
June 30,
  
Mar. 31,
  
Dec. 31,
      
       
2010
  
2010
  
2010
  
2010
  
2009
      
Tangible book value:
                          
 
Total shareholders' equity
 $      606,863
  
 $     608,287
  
 $     604,714
  
 $     596,473
  
 $     588,716
      
 
Less:  goodwill and other intangible assets
       (285,559)
  
      (286,228)
  
      (286,908)
  
      (287,593)
  
      (288,292)
      
 
Tangible equity
  
         321,304
  
        322,059
  
        317,806
  
        308,880
  
        300,424
      
                               
 
Common shares outstanding
    26,586,953
  
   26,586,953
  
   26,586,903
  
   26,567,653
  
   26,567,653
      
                               
Tangible book value
  
 $          12.09
  
 $         12.11
  
 $         11.95
  
 $         11.63
  
 $         11.31
      
                               
                               
Tangible equity to tangible assets:
                        
 
Total shareholders' equity
 $      606,863
  
 $     608,287
  
 $     604,714
  
 $     596,473
  
 $     588,716
      
 
Less:  goodwill and other intangible assets
       (285,559)
  
      (286,228)
  
      (286,908)
  
      (287,593)
  
      (288,292)
      
 
Tangible equity
  
         321,304
  
        322,059
  
        317,806
  
        308,880
  
        300,424
      
                               
 
Total assets
  
      5,361,458
  
     5,362,623
  
     5,356,261
  
     5,380,441
  
     5,397,352
      
 
Less:  goodwill and other intangible assets
       (285,559)
  
      (286,228)
  
      (286,908)
  
      (287,593)
  
      (288,292)
      
 
Tangible assets
  
      5,075,899
  
     5,076,395
  
     5,069,353
  
     5,092,848
  
     5,109,060
      
                               
Tangible equity to tangible assets
6.33%
  
6.34%
  
6.27%
  
6.06%
  
5.88%
      
                               
                               
(1) Tax effected at 35%.