Form 425

Filed by WesBanco, Inc.
Pursuant to Rule 425 under the Securities Act
of 1933 and deemed filed pursuant to Rule 14a-12 under the
Securities Exchange Act of 1934
 
Subject Company: Western Ohio Financial Corporation
 
Commission File No. 0-24120
 
Date: July 21, 2004
 
WesBanco, Inc. issued a news release announcing its earnings for the quarter and six months ended June 30, 2004.  
 
NEWS FOR IMMEDIATE RELEASE
 July 21, 2004   For Further Information Contact:
   
   Paul M. Limbert
   President & CEO
   
   or
   
   Robert H. Young
   Executive VP & CFO
   (304) 234-9000
   
   NASDAQ Trading Symbol: WSBC
   Website: www.wesbanco.com
 

 
WesBanco Announces a 26.3 % Increase in Second Quarter 2004 Earnings Per Share
and an 18.3% Increase in First Half 2004 Earnings Per Share

Wheeling, WV.Paul M. Limbert, President & CEO of WesBanco, Inc., a Wheeling, West Virginia based multi-state bank holding company, today announced increased earnings per share and net income for the second quarter and six months ended June 30, 2004.

Mr. Limbert stated that WesBanco’s earnings per share for the second quarter ended June 30, 2004 increased 26.3% to $0.48 compared to $0.38 for 2003. Net income for the quarter ended June 30, 2004 increased 21.0% to $9.4 million compared to $7.7 million for 2003. WesBanco’s earnings per share for the six months ended June 30, 2004 increased 18.3% to $0.97 compared to $0.82 for 2003. Net income for the six months ended June 30, 2004 increased 15.0% to $19.1 million compared to $16.6 million for 2003. Annualized return on average assets for the second quarter and six months ended June 30, 2004 increased to 1.10% and 1.13%, respectively compared to 0.93% and 1.01% for the corresponding periods in 2003. Annualized return on average equity for the second quarter and six months ended June 30, 2004 increased to 11.80% and 12.02%, respectively compared to 9.69% and 10.41% for the corresponding periods in 2003.

“WesBanco’s results for the second quarter and first half of 2004 continue to build on the excellent first quarter results that WesBanco experienced,” Mr. Limbert stated. “Factors influencing WesBanco’s results were increased loan volume, reduced cost of funds and a reduction in the provision for loan losses due to improving credit quality. WesBanco’s loan growth of $191.6 million or 10.4%, compared to June 30, 2003, was primarily in commercial and commercial real estate lending and for the first time in WesBanco’s history loans exceeded the $2.0 billion mark,” said Mr. Limbert.

Net interest income increased $2.3 million or 9.5% and $3.8 million or 7.7% compared to the second quarter and first half of 2003 primarily from growth in earning assets and a lower cost of funds. The net interest margin expanded to 3.67% for the second quarter of 2004 and to 3.69% for the first half of 2004 compared to 3.44% and 3.55% for the corresponding periods in 2003. The volume of average earning assets increased $81.6 million or 2.7% and $89.2 million or 2.9% compared to second quarter and first half of 2003. These volume increases were partially offset by lower rates on new loans and prevailing market rates on new investments evidenced by
 
 
WesBanco Announces Increased Second Quarter and First Half 2004 Earnings Per Share                                                                           Page 2 
 
the yield on earning assets decreasing to 5.42% for the second quarter and 5.44% for the first half of 2004 compared to 5.63% and 5.79% for the same periods in 2003. During the same periods the volume of interest bearing liabilities increased $56.5 million or 2.1% and $58.3 million or 2.2%. The average rate paid on these liabilities decreased to 2.00% for both the second quarter and first half of 2004, compared to 2.49% and 2.54% for the same periods in 2003.

Non-interest income decreased $0.2 million or 2.1% compared to the second quarter of 2003, while on a year to date basis WesBanco experienced an increase of $0.3 million or 2.0%, with both periods in 2004 being impacted by lower net security gains and lower bank-owned life insurance income. Compared to the second quarter and first half of 2003, trust fees showed strong increases of $0.6 million or 22.8% and $1.1 million or 20.4% primarily due to new account relationships and a new fee schedule implemented in late 2003. The market value of trust assets under management was approximately $2.6 billion at June 30, 2004, compared to $2.5 billion at June 30, 2003 and $2.8 billion at March 31, 2004. The decline in market value, on a linked-quarter basis from March 31, 2004, was primarily caused by a loss of certain low-fee custodial accounts. The loss of these relationships will not have a significant effect on fee income as they have been substantially offset by higher revenue services and corresponding relationships. For the second quarter and first half of 2004 compared to the same periods in 2003, service charges on deposits increased $0.2 million or 7.5% and $0.5 million or 9.5% due to an increase in ATM and debit card transaction income. Net securities gains were $0.2 million and $0.8 million for the second quarter and first half of 2004, respectively, compared to $1.3 million and $2.4 million for the same periods in 2003.
 
The provision for loan losses decreased $1.0 million or 39.7% and $1.2 million or 26.1% compared to the second quarter and first half of 2003, primarily due to the overall decrease in net charge-offs and the improvement in credit quality. Net charge-offs decreased $1.4 million or 57.3% and $1.7 million or 42.8% compared to the second quarter and first half of 2003. WesBanco’s non-performing loans at June 30, 2004 decreased by $6.2 million or 40.2% compared to June 30, 2003, primarily as a result of the sale of certain underperforming loans in the fourth quarter of 2003. Non-performing loans as a percentage of total loans decreased to 0.46% at June 30, 2004, compared to 0.84% at June 30, 2003. Loans past due 90 days or more at June 30, 2004 decreased $3.9 million or 48.5% compared to June 30, 2003 and $3.6 million or 46.5% compared to December 31, 2003 and $0.9 million or 17.3% on a linked-quarter basis from the first quarter of 2004. The allowance for loan losses was $27.3 million or 1.34% of total loans at June 30, 2004, compared to $25.6 million or 1.39% of total loans at June 30, 2003. The allowance currently provides coverage of 2.94 times non-performing loans and 2.03 times non-performing loans plus loans past due 90 days or more compared to 1.65 and 1.08 times, respectively, at June 30, 2003.

Non-interest expense increased $0.6 million or 2.7% and $1.6 million or 4.0% compared to the second quarter and first half of 2003. For the second quarter of 2004, compared to 2003, salaries and employee benefits increased $0.6 million or 5.9% due to normal annual salary increases as well as higher health insurance costs, while all other non-interest expenses decreased $0.1 million. For the first half of 2004, compared to 2003, higher salaries and health insurance costs represented $1.4 million of the increase, while all other non-interest expenses increased $0.3 million. The efficiency ratio on a GAAP basis improved to 58.31% and 57.38% for the second quarter and first half of 2004 compared to 60.20% and 58.33% for the corresponding periods in 2003.

 
WesBanco Announces Increased Second Quarter and First Half 2004 Earnings Per Share                                                                           Page 3 
 
 
The provision for income taxes increased $0.9 million or 73.0% and $1.1 million or 33.3% compared to the second quarter and first half 2003, primarily due to an increase in pretax income while levels of tax exempt income remained relatively unchanged. The effective tax rate increased to 18.7% for the second quarter and 19.2% for the first half of 2004, compared to 13.8% and 17.0% for the corresponding periods in 2003.

Total loans increased $96.9 million or 5.0% at June 30, 2004 compared to December 31, 2003, and $80.8 million or 4.1% on a linked-quarter basis from the first quarter of 2004. The increase in total loans over year-end was fueled by an increase in commercial and commercial real estate loans, which increased $69.2 million or 7.0%, primarily from the Columbus, Ohio and Washington, Pennsylvania markets. Compared to year-end, residential real estate loans showed a modest gain of 3.1%. In June of 2004, WesBanco purchased a $17.3 million pool of loans comprised mainly of 15-year fixed rate residential mortgages. Consumer and home equity loans, which have been declining steadily over the past two years, increased 2.8% during the first half of 2004.

Total investment securities decreased $43.7 million or 3.6% at June 30, 2004 compared to December 31, 2003, primarily due to calls and maturities, which allowed WesBanco to shift funds out of the investment portfolio into higher yielding loans. Cash flows from the portfolio due to calls, maturities and prepayments for the first half of 2004 decreased to $157.0 million, down substantially from the $350.1 million experienced in the first half of 2003. WesBanco’s yield on investment securities for the first half of 2004 was 4.78% compared to 5.12% for the first half of 2003. At June 30, 2004, the weighted average lives of the available for sale and the held to maturity portfolios increased to 3.3 years and 5.3 years compared to 1.9 years and 4.8 years at June 30, 2003, respectively.
 
Total deposits decreased $34.9 million or 1.4% at June 30, 2004 compared to December 31, 2003, while the average balance for the six months ended June 30, 2004 increased by $9.6 million or 0.4% compared to the full year ended December 31, 2003. Average non-interest bearing demand deposits increased $17.7 million or 5.9% compared to the year-end 2003 average balance as more marketing emphasis has been placed on transaction based accounts, which provide ancillary service charge income and are a lower-cost funding source. Average interest bearing demand deposits and money market accounts on a combined basis increased $25.8 million or 3.1% compared to the year-end 2003 average balances. Average certificates of deposit decreased $29.2 million or 3.0% compared to the year-end 2003 average balance, as customers continue to favor non-maturity interest bearing accounts, while the level of average savings accounts decreased slightly. The average rate paid on deposits for the first half of 2004 decreased to 1.75% compared to 2.32% for the first half of 2003.

Federal Home Loan Bank (“FHLB”) borrowings increased $71.7 million or 19.9% at June 30, 2004 compared to December 31, 2003, primarily due to $75.0 million in new FHLB borrowings in the second quarter of 2004. Junior subordinated debt increased $41.2 million at June 30, 2004 compared to December 31, 2003, due to the creation in June 2004 of WesBanco Capital Trust IV and Capital Trust V, which each issued $20.6 million in junior subordinated debt with an initial average rate of 5.44%. The proceeds from the issuance of the junior subordinated debt will be used to fund the Western Ohio acquisition and will give WesBanco added liquidity for future stock repurchases and possible additional acquisition activity. Other borrowings decreased $26.3 million or 12.1% at June 30, 2004 compared to December 31, 2003 due to reductions in repurchase agreements and other borrowings offset by an increase in federal funds purchased. The average rate paid on all borrowed funds for the first half of 2004 decreased to 2.93% compared to 3.44% for the first half of 2003.

 
WesBanco Announces Increased Second Quarter and First Half 2004 Earnings Per Share                                                                           Page 4 
 
 
Shareholders’ equity at June 30, 2004 was highlighted by a Tier I leverage ratio of 10.11% compared to 8.70% at June 30, 2003. Book value increased to $16.22 per share at June 30, 2004 compared to $15.92 at June 30, 2003. For the six months ended June 30, 2004, WesBanco repurchased a total of 140,874 shares at an average cost of $28.81 per share through its current one million-share stock repurchase plan approved by the Board on April 17, 2003, with a total of 520,243 shares still available for repurchase.

WesBanco has obtained all the necessary regulatory approvals for the Western Ohio acquisition. The closing of the transaction is anticipated to be completed in the third quarter of 2004 pending approval by the shareholders of Western Ohio at their upcoming August 17, 2004 special shareholders meeting.

WesBanco is a multi-state bank holding company presently operating through 72 banking offices and 105 ATM machines in West Virginia, Central and Eastern Ohio and Western Pennsylvania. WesBanco is the second largest bank holding company headquartered in West Virginia with the third overall deposit market share. Its banking subsidiary is WesBanco Bank, Inc., headquartered in Wheeling, West Virginia. In addition, WesBanco operates an insurance brokerage company, WesBanco Insurance Services, Inc. and a full service broker/dealer, WesBanco Securities, Inc.



Forward-looking statements in this press release relating to WesBanco’s plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The information contained in this press release should be read in conjunction with WesBanco’s most recent annual report filed with the Securities and Exchange Commission on Form 10-K for the year ended December 31, 2003, as well as the Form 10-Q for the prior quarter ended March 31, 2004, 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 the Company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission under the section “Risk Factors”. Such statements are subject to important factors that could cause actual results to differ materially from those contemplated by such statements, including without limitation, the effect of changing regional and national economic conditions; changes in interest rates, spreads on earning assets and interest-bearing liabilities, and associated interest rate sensitivity; sources of liquidity available to the parent company and its related subsidiary operations; potential future credit losses and the credit risk of commercial, real estate, and consumer loan customers and their borrowing activities; actions of the Federal Reserve Board, Federal Deposit Insurance Corporation, the Securities and Exchange Commission, the National Association of Securities Dealers and other regulatory bodies; potential legislative and federal and state regulatory actions and reform; competitive conditions in the financial services industry; rapidly changing technology affecting financial services, and/or other external developments materially impacting WesBanco’s operational and financial performance. WesBanco does not assume any duty to update forward-looking statements.



###

See attached financial highlights.


 

WESBANCO, INC.
 
 
 
 
Consolidated Selected Financial Highlights
 
 
 
 
June 30, 2004 and 2003 and December 31, 2003
 
 
 
Page 5
 
 
 
 
(unaudited, dollars in thousands)
   
 
    
 
    
 
  
Balance sheet (period end)
   
June 30,

 

 
December 31,

 

 
June 30,

 

Assets

 

 
2004

 

 
2003

 

 
2003
 
   
 
 
 
Cash and due from banks
 
$
93,025
 
$
88,021
 
$
100,436
 
Due from banks - Interest bearing
   
2,114
   
3,189
   
1,282
 
Federal funds sold
   
-
   
17,000
   
-
 
Securities
   
1,157,427
   
1,201,109
   
1,268,607
 
Loans:
   
 
    
 
    
 
  
Commercial and commercial real estate
   
1,062,230
   
993,029
   
871,050
 
Residential real estate
   
596,886
   
579,103
   
576,390
 
Consumer and home equity
   
371,357
   
361,406
   
391,390
 
   
 
 
 
Total loans
   
2,030,473
   
1,933,538
   
1,838,830
 
Allowance for loan losses
   
(27,267
)
 
(26,235
)
 
(25,578
)
   
 
 
 
Net loans
   
2,003,206
   
1,907,303
   
1,813,252
 
   
 
 
 
Premises and equipment
   
53,162
   
53,232
   
54,974
 
Goodwill
   
49,868
   
49,868
   
49,868
 
Other intangibles
   
7,359
   
7,933
   
8,650
 
Other assets
   
129,662
   
117,351
   
113,913
 
   
 
 
 
Total Assets
 
$
3,495,823
 
$
3,445,006
 
$
3,410,982
 
   
 
 
 
 
    
 
    
 
    
 
  
Liabilities and Shareholders' Equity
   
 
    
 
    
 
  
Non-interest bearing demand deposits
 
$
335,843
 
$
328,337
 
$
308,299
 
Interest bearing demand deposits
   
281,998
   
307,925
   
287,505
 
Money market accounts
   
552,217
   
563,295
   
549,766
 
Savings deposits
   
354,567
   
352,324
   
360,948
 
Certificates of deposit
   
922,564
   
930,201
   
962,315
 
   
 
 
 
Total deposits
   
2,447,189
   
2,482,082
   
2,468,833
 
   
 
 
 
Federal Home Loan Bank borrowings
   
432,975
   
361,230
   
365,338
 
Other borrowings
   
191,498
   
217,754
   
155,564
 
Junior subordinated debt and trust preferred securities
   
72,174
   
30,936
   
30,000
 
Other liabilities
   
33,359
   
34,568
   
72,508
 
Shareholders' equity
   
318,628
   
318,436
   
318,739
 
   
 
 
 
Total Liabilities and Shareholders' Equity
 
$
3,495,823
 
$
3,445,006
 
$
3,410,982
 
   
 
 
 

Average balance sheet and
 
For the Three Months Ended
For the Six Months Ended
net interest margin analysis
 
June 30, 
June 30, 
   
 
 
 
 
 
  
2004
 
2003

 
2004
 
2003
   
 
  

 

  
Average
Average
 
Average
Average
Average
Average
 
Average
Average
Assets
 
Volume
Rate
 
Volume
Rate
Volume
Rate
 
Volume
Rate
   
Loans, net of unearned income
 
$1,981,904
5.81%
 
$1,819,403
6.20%
$1,954,934
5.84%
 
$1,817,922
6.31%
Securities:
 
 
 
 
 
 
 
 
 
 
 
Taxable
 
780,968
3.62%
 
838,206
3.84%
785,566
3.66%
 
811,925
4.10%
Tax-exempt
 
372,130
7.15%
 
364,154
7.36%
373,708
7.14%
 
367,955
7.38%
   
Total securities
 
1,153,098
4.76%
 
1,202,360
4.91%
1,159,274
4.78%
 
1,179,880
5.12%
Federal funds sold
 
4,367
1.01%
 
36,042
1.20%
7,421
0.94%
 
34,619
1.18%
   
Total earning assets
 
3,139,369
5.42%
 
3,057,805
5.63%
3,121,629
5.44%
 
3,032,421
5.79%
Other assets
 
278,819
 
 
290,681
 
274,410
 
 
288,852
 
   
      		  
        
Total Assets
 
$3,418,188
 
 
$3,348,486
 
$3,396,039
 
 
$3,321,273
 
 
  
 
 
Liabilities and Shareholders' Equity
 
 
 
 
 
 
 
 
 
 
 
Interest bearing demand deposits
 
$ 291,827
0.25%
 
$ 283,563
0.40%
$ 292,892
0.26%
 
$ 280,175
0.42%
Money market accounts
 
558,354
1.66%
 
536,682
2.27%
561,310
1.66%
 
525,705
2.28%
Savings deposits
 
355,871
0.31%
 
363,794
0.68%
353,809
0.32%
 
361,034
0.73%
Certificates of deposit
 
926,761
2.81%
 
971,923
3.33%
928,580
2.81%
 
971,968
3.48%
   
Total interest bearing deposits
 
2,132,813
1.74%
 
2,155,962
2.23%
2,136,591
1.75%
 
2,138,882
2.32%
Federal Home Loan Bank borrowings
 
394,063
3.41%
 
354,410
4.13%
375,910
3.49%
 
348,572
4.18%
Other borrowings
 
180,103
1.29%
 
162,214
1.45%
178,030
1.26%
 
164,950
1.46%
Junior subordinated debt and
 
 
 
 
 
 
 
 
 
 
 
trust preferred securities
 
37,270
5.54%
 
15,159
8.07%
34,103
5.55%
 
13,912
8.41%
   
Total interest bearing liabilities
 
2,744,249
2.00%
 
2,687,745
2.49%
2,724,634
2.00%
 
2,666,316
2.54%
   
Non-interest bearing demand deposits
 
322,402
 
 
298,609
 
318,709
 
 
294,478
 
Other liabilities
 
32,339
 
 
41,603
 
32,681
 
 
38,367
 
Shareholders' equity
 
319,198
 
 
320,529
 
320,015
 
 
322,112
 
   
Total Liabilities and
 
 
 
 
 
 
 
 
 
 
 
Shareholders' Equity
 
$3,418,188
 
 
$3,348,486
 
$3,396,039
 
 
$3,321,273
 
 
  
 
 
 
 
 
 
 
 
 
 
Taxable equivalent net interest
 
 
 
 
 
 
 
 
 
 
 
margin
 
 
3.67%
 
 
 
3.44%
 
 
3.69%
 
 
 
3.55%
 

WESBANCO, INC.
 
 
 
 
 
Consolidated Selected Financial Highlights
 
 
 
 
 
June 30, 2004 and 2003
 
 
 
 
Page 6
 
 
 
 
 
(unaudited, dollars in thousands, except per share amounts)   
    
 
    
 
    
 
  
 
    
 
    
 
    
 
    
 
  
 

   For the Three Months Ended   

    
For the Six Months Ended   
  
 
  

 June 30,    

    
June 30,   
  
   
 		  
 		  
Statement of income
   
2004

 

 
2003

 

 
2004

 

 
2003
 
   
 
 
 
 
Interest income
 
$
40,020
 
$
40,619
 
$
79,852
 
$
82,524
 
Interest expense
   
13,658
   
16,540
   
27,163
   
33,604
 
   
 
 
 
 
Net interest income
   
26,362
   
24,079
   
52,689
   
48,920
 
Provision for loan losses
   
1,496
   
2,479
   
3,296
   
4,459
 
   
 
 
 
 
Net interest income after provision for
   
 
    
 
    
 
    
 
  
loan losses
   
24,866
   
21,600
   
49,393
   
44,461
 
   
 
 
 
 
Non-interest income
   
 
    
 
    
 
    
 
  
Trust fees
   
3,210
   
2,615
   
6,741
   
5,597
 
Service charges on deposits
   
3,233
   
3,007
   
6,245
   
5,703
 
Other income
   
1,494
   
1,299
   
3,051
   
2,863
 
Net securities gains
   
155
   
1,347
   
816
   
2,353
 
   
 
 
 
 
Total non-interest income
   
8,092
   
8,268
   
16,853
   
16,516
 
Non-interest expense
   
 
    
 
    
 
    
 
  
Salaries and employee benefits
   
11,278
   
10,652
   
22,473
   
21,094
 
Net occupancy
   
1,362
   
1,341
   
2,930
   
2,831
 
Equipment
   
1,884
   
1,818
   
3,654
   
3,636
 
Other operating
   
6,922
   
7,074
   
13,524
   
13,379
 
   
 
 
 
 
Total non-interest expense
   
21,446
   
20,885
   
42,581
   
40,940
 
   
 
 
 
Income before income taxes
   
11,512
   
8,983
   
23,665
   
20,037
 
Provision for income taxes
   
2,149
   
1,242
   
4,543
   
3,407
 
   
 
 
 
 
Net income
 
$
9,363
 
$
7,741
 
$
19,122
 
$
16,630
 
   
 
 
 
 
Taxable equivalent net interest income
 
$
28,689
 
$
26,425
 
$
57,359
 
$
53,670
 
 
    
 
    
 
    
 
    
 
  
Per common share data
   
 
    
 
    
 
    
 
  
Net income per common share - basic
 
$
0.48
 
$
0.38
 
$
0.97
 
$
0.82
 
Net income per common share - diluted
 
$
0.48
 
$
0.38
 
$
0.97
 
$
0.82
 
Dividends declared
   
0.25
   
0.24
   
0.50
   
0.48
 
Book value (period end)
   
 
    
 
    
16.22
   
15.92
 
Tangible book value (period end)
   
 
    
 
    
13.31
   
12.99
 
Average shares outstanding - basic
   
19,665,779
   
20,122,685
   
19,692,856
   
20,243,813
 
Average shares outstanding - diluted
   
19,708,871
   
20,145,264
   
19,739,550
   
20,261,825
 
Period end shares outstanding
   
 
    
 
    
19,649,453
   
20,027,323
 
 
    
 
    
 
    
 
    
 
  
 
    
 
    
 
    
 
    
 
  
Profitability ratios (annualized)
   
 
    
 
    
 
    
 
  
Return on average assets
   
1.10
%
  
0.93
%
  
1.13
%
  
1.01
%
Return on average equity
   
11.80
%
  
9.69
%
  
12.02
%
  
10.41
%
Yield on earning assets (1)
   
5.42
%
  
5.63
%
  
5.44
%
  
5.79
%
Cost of interest bearing liabilities
   
2.00
%
  
2.49
%
  
2.00
%
  
2.54
%
Net interest margin (1)
   
3.67
%
  
3.44
%
  
3.69
%
  
3.55
%
Efficiency (1)
   
58.31
%
  
60.20
%
  
57.38
%
  
58.33
%
 
    
 
    
 
    
 
    
 
  
 
    
 
    
 
    
 
    
 
  
(1) the yield on earning assets, the net interest margin and the 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 relevant          
comparison between taxable and non-taxable amounts.          

WESBANCO, INC.
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated Selected Financial Highlights
 
 
 
 
 
 
 
 
 
June 30, 2004 and 2003 and December 31, 2003
 
 
 
 
 
 
Page 7
 
(unaudited, dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
June 30,
 
December 31,
 
Asset quality data
 
 
 
 
 
 
 
2004
 
2003
 
2003
 
Non-performing assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-accrual loans
 
 
 
 
 
 
 
$ 8,639
 
$ 14,867
 
$ 8,262
 
Renegotiated loans
 
 
 
 
 
 
 
646
 
663
 
653
 
Total non-performing loans
 
 
 
 
 
 
 
9,285
 
15,530
 
8,915
 
Other real estate and repossessed assets
 
 
1,708
 
3,862
 
2,907
 
 
Total non-performing loans and assets
 
 
$ 10,993
 
$ 19,392
 
$ 11,822
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans past due 90 days or more
 
 
 
$ 4,169
 
$ 8,091
 
$ 7,795
 
Allowance for loan losses
 
 
 
 
 
 
 
27,267
 
25,578
 
26,235
 
Net loan charge-offs:
 
 
 
 
 
 
 
 
 
 
 
 
 
        Quarter-to-date
 
 
 
 
 
 
 
1,031
 
2,417
 
2,655
 
        Year -to-date
 
 
 
 
 
 
 
2,264
 
3,961
 
8,457
 
Allowance for loan losses/non-performing loans
 
2.94
X
1.65
X
2.94
X
Allowance for loan losses/non-performing loans and
 
 
 
 
 
 
 
 
     past due 90 days or more
 
 
2.03
X
1.08
X
1.57
X
Allowance for loan losses/total loans
 
 
 
1.34
%
1.39
%
1.36
%
Non-performing assets/total assets
 
 
0.31
 
0.57
 
0.34
 
Non-performing assets/total loans, other real
 
 
 
 
 
 
 
     estate and repossessed assets
 
0.54
 
1.05
 
0.61
 
Non-performing loans/total loans
 
0.46
 
0.84
 
0.46
 
Non-performing loans and loans past due 90
 
 
 
 
 
 
 
     days or more/total loans
 
 
 
0.66
 
1.28
 
0.86
 
Annualized net loan charge-offs/average loans
 
 
0.23
 
0.44
 
0.46
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Regulatory Guidelines
 
 
 
 
 
 
 

 

 

 

 

 

 

 

 

 

 

 

 
 
 
 
 
 
Well
 
 
 
 
 
 
 
Capital ratios
 
 
 
Minimum
 
Capitalized
 
 
 
 
 
 
 

 

 

 

 

 

 

 

 

 

 

 

 

Tier I leverage capital
 
 
 
4.00
%
5.00
%
10.11
%
8.70
%
8.76
%
Tier I risk-based capital
 
 
 
4.00
 
6.00
 
15.00
 
13.43
 
13.31
 
Total risk-based capital
 
 
 
8.00
 
10.00
 
16.21
 
14.64
 
14.50