(Mark
One)
|
||
x
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
|
For
the quarterly period ended June 30, 2007
|
||
¨
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF
1934
|
|
For
the transition period from ____________ to ____________
|
||
Commission
File Number 0-8467
|
WESBANCO,
INC.
|
||
(Exact
name of Registrant as specified in its charter)
|
||
WEST
VIRGINIA
|
55-0571723
|
|
(State
of incorporation)
|
(IRS
Employer Identification No.)
|
|
1
Bank Plaza, Wheeling, WV
|
26003
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
|
Registrant's
telephone number, including area
code: 304-234-9000
|
||
NOT
APPLICABLE
|
||
(Former
name, former address and former fiscal year, if changed since last
report)
|
Larger
accelerated filer ¨
|
Accelerated
filer þ
|
Non-accelerated
filer ¨
|
WESBANCO,
INC.
|
||
TABLE
OF CONTENTS
|
||
Item
No.
|
ITEM
|
Page
No.
|
PART
I - FINANCIAL INFORMATION
|
||
1
|
Financial
Statements
|
|
Consolidated
Balance Sheets at June 30, 2007 (unaudited) and December 31,
2006
|
3
|
|
Consolidated
Statements of Income for the three and six months ended June 30,
2007 and
2006 (unaudited)
|
4
|
|
Consolidated
Statements of Changes in Shareholders' Equity for the six months
ended
June 30, 2007 and 2006 (unaudited)
|
5
|
|
Consolidated
Statements of Cash Flows for the six months ended June 30, 2007
and 2006
(unaudited)
|
6
|
|
Notes
to Consolidated Financial Statements
|
7
|
|
2
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
16
|
3
|
Quantitative
and Qualitative Disclosures About Market Risk
|
28
|
4
|
Controls
and Procedures
|
29
|
PART
II – OTHER INFORMATION
|
||
1
|
Legal
Proceedings
|
30
|
2
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
30
|
4
|
Submission
of Matters to a Vote of Security Holders.
|
30
|
6
|
Exhibits
|
31
|
Signatures
|
32
|
WESBANCO,
INC. CONSOLIDATED BALANCE SHEETS
|
||
June
30,
|
December
31,
|
|
(in
thousands, except per share amounts)
|
2007
|
2006
|
(unaudited)
|
||
ASSETS
|
||
Cash
and due from banks, including interest bearing amounts of
$984 and $1,217, respectively
|
$ 69,369
|
$ 96,605
|
Securities:
|
||
Available-for-sale,
at fair value
|
726,393
|
395,520
|
Held-to-maturity
(fair values of $0 and $347,391,
respectively)
|
-
|
341,187
|
Total
securities
|
726,393
|
736,707
|
Loans
held for sale
|
6,778
|
3,170
|
Portfolio
loans:
|
||
Commercial
|
403,451
|
409,347
|
Commercial
real estate
|
1,157,055
|
1,165,823
|
Residential
real estate
|
841,512
|
896,533
|
Home
equity
|
155,231
|
161,602
|
Consumer
|
272,549
|
274,908
|
Total
portfolio loans, net of unearned income
|
2,829,798
|
2,908,213
|
Allowance
for loan losses
|
(31,928)
|
(31,979)
|
Net
portfolio loans
|
2,797,870
|
2,876,234
|
Premises
and equipment, net
|
68,496
|
67,404
|
Accrued
interest receivable
|
18,479
|
19,180
|
Goodwill
and other intangible assets, net
|
143,956
|
145,147
|
Bank-owned
life insurance
|
83,444
|
82,473
|
Other
assets
|
72,402
|
71,223
|
Total
Assets
|
$ 3,987,187
|
$ 4,098,143
|
LIABILITIES
|
||
Deposits:
|
||
Non-interest
bearing demand
|
$ 394,660
|
$ 401,909
|
Interest
bearing demand
|
351,233
|
356,088
|
Money
Market Accounts
|
381,281
|
354,082
|
Savings
deposits
|
421,513
|
441,226
|
Certificates
of deposit
|
1,444,656
|
1,442,242
|
Total
deposits
|
2,993,343
|
2,995,547
|
Federal
Home Loan Bank borrowings
|
265,119
|
358,907
|
Other
short-term borrowings
|
197,871
|
202,561
|
Junior
subordinated debt owed to unconsolidated subsidiary trusts
|
87,638
|
87,638
|
Total
borrowings
|
550,628
|
649,106
|
Accrued
interest payable
|
10,834
|
10,174
|
Other
liabilities
|
26,831
|
26,441
|
Total
Liabilities
|
3,581,636
|
3,681,268
|
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; 23,615,859
shares
issued;
|
||
outstanding:
20,759,920 shares in 2007 and 21,496,793 shares in
2006
|
49,200
|
49,200
|
Capital
surplus
|
123,293
|
123,170
|
Retained
earnings
|
328,895
|
316,457
|
Treasury
stock (2,855,939 and 2,119,066 shares, respectively, at
cost)
|
(85,142)
|
(61,855)
|
Accumulated
other comprehensive loss (fair value adjustments)
|
(9,500)
|
(8,863)
|
Deferred
benefits for directors and employees
|
(1,195)
|
(1,234)
|
Total
Shareholders' Equity
|
405,551
|
416,875
|
Total
Liabilities and Shareholders' Equity
|
$ 3,987,187
|
$ 4,098,143
|
WESBANCO,
INC. CONSOLIDATED STATEMENTS OF INCOME
|
|||||||
For
the Three Months Ended
|
For
the Six Months Ended
|
||||||
June
30,
|
June
30,
|
||||||
(unaudited,
in thousands, except per share amounts)
|
2007
|
2006
|
2007
|
2006
|
|||
INTEREST
AND DIVIDEND INCOME
|
|||||||
Loans,
including fees
|
$ 48,355
|
$ 47,024
|
$ 96,624
|
$ 92,756
|
|||
Interest
and dividends on securities:
|
|||||||
Taxable
|
5,097
|
4,407
|
9,875
|
10,366
|
|||
Tax-exempt
|
3,616
|
4,053
|
7,353
|
8,361
|
|||
Total
interest and dividends on securities
|
8,713
|
8,460
|
17,228
|
18,727
|
|||
Federal
funds sold
|
433
|
86
|
541
|
86
|
|||
Other
interest income
|
311
|
424
|
612
|
872
|
|||
Total
interest and dividend income
|
57,812
|
55,994
|
115,005
|
112,441
|
|||
INTEREST
EXPENSE
|
|||||||
Interest
bearing demand deposits
|
1,226
|
961
|
2,247
|
1,507
|
|||
Money
market deposits
|
2,529
|
2,093
|
4,719
|
4,288
|
|||
Savings
deposits
|
1,433
|
1,480
|
2,933
|
2,756
|
|||
Certificates
of deposit
|
16,541
|
13,347
|
32,220
|
25,840
|
|||
Total
interest expense on deposits
|
21,729
|
17,881
|
42,119
|
34,391
|
|||
Federal
Home Loan Bank borrowings
|
3,329
|
4,314
|
6,639
|
9,672
|
|||
Other
short-term borrowings
|
2,149
|
1,535
|
4,241
|
3,777
|
|||
Junior
subordinated debt owed to unconsolidated subsidiary trusts
|
1,419
|
1,400
|
2,827
|
2,754
|
|||
Total
interest expense
|
28,626
|
25,130
|
55,826
|
50,594
|
|||
NET
INTEREST INCOME
|
29,186
|
30,864
|
59,179
|
61,847
|
|||
Provision
for credit losses
|
1,776
|
2,263
|
3,236
|
4,903
|
|||
Net
interest income after provision for loan losses
|
27,410
|
28,601
|
55,943
|
56,944
|
|||
NON-INTEREST
INCOME
|
|||||||
Trust
fees
|
3,885
|
3,537
|
8,223
|
7,595
|
|||
Service
charges on deposits
|
4,431
|
4,179
|
8,314
|
7,976
|
|||
Bank-owned
life insurance
|
1,672
|
732
|
2,420
|
1,461
|
|||
Net
securities gains (losses)
|
39
|
92
|
717
|
(7,850)
|
|||
Net
gains on sales of loans
|
379
|
398
|
715
|
441
|
|||
Gains
on early extinguishment of debt
|
895
|
1,047
|
895
|
1,047
|
|||
Other
income
|
2,151
|
2,405
|
5,404
|
7,134
|
|||
Total
non-interest income
|
13,452
|
12,390
|
26,688
|
17,804
|
|||
NON-INTEREST
EXPENSE
|
|||||||
Salaries
and wages
|
10,186
|
9,928
|
20,368
|
19,832
|
|||
Employee
benefits
|
3,629
|
3,387
|
7,325
|
6,899
|
|||
Net
occupancy
|
1,866
|
1,866
|
3,869
|
3,879
|
|||
Equipment
|
1,884
|
1,993
|
3,786
|
4,023
|
|||
Marketing
|
1,414
|
1,837
|
2,036
|
2,911
|
|||
Amortization
of intangible assets
|
596
|
633
|
1,192
|
1,266
|
|||
Restructuring
expenses
|
-
|
-
|
-
|
540
|
|||
Other
operating expenses
|
7,397
|
7,344
|
14,781
|
14,450
|
|||
Total
non-interest expense
|
26,972
|
26,988
|
53,357
|
53,800
|
|||
Income
before provision for income taxes
|
13,890
|
14,003
|
29,274
|
20,948
|
|||
Provision
for income taxes
|
1,595
|
2,742
|
5,032
|
4,103
|
|||
NET
INCOME
|
$ 12,295
|
$ 11,261
|
$ 24,242
|
$ 16,845
|
|||
EARNINGS
PER SHARE
|
|||||||
Basic
|
$ 0.59
|
$ 0.52
|
$ 1.15
|
$ 0.77
|
|||
Diluted
|
$ 0.59
|
$ 0.52
|
$ 1.15
|
$ 0.77
|
|||
AVERAGE
SHARES OUTSTANDING
|
|||||||
Basic
|
20,838,798
|
21,893,943
|
21,053,868
|
21,915,824
|
|||
Diluted
|
20,884,156
|
21,946,829
|
21,103,429
|
21,970,952
|
|||
DIVIDENDS
DECLARED PER COMMON SHARE
|
$ 0.275
|
$ 0.265
|
$ 0.550
|
$ 0.530
|
WESBANCO,
INC. CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’
EQUITY
|
||||||||
For
the Six Months Ended June 30, 2007 and 2006
|
||||||||
Accumulated
|
Deferred
|
|||||||
Other
|
Benefits
for
|
|||||||
(unaudited,
in thousands, except
|
Common
Stock
|
Capital
|
Retained
|
Treasury
|
Comprehensive
|
Directors
&
|
||
per
share amounts)
|
Shares
|
Amount
|
Surplus
|
Earnings
|
Stock
|
Income
(Loss)
|
Employees
|
Total
|
Balance,
December 31, 2005
|
21,955,359
|
$ 49,200
|
$ 122,345
|
$ 300,452
|
$ (47,769)
|
$ (7,875)
|
$ (1,123)
|
$ 415,230
|
Net
income
|
16,845
|
16,845
|
||||||
Other
comprehensive income
|
1,352
|
1,352
|
||||||
Comprehensive
income
|
18,197
|
|||||||
Common
dividends
|
||||||||
declared
($0.53 per share)
|
(11,605)
|
(11,605)
|
||||||
Treasury
shares purchased
|
(197,616)
|
(5,912)
|
(5,912)
|
|||||
Treasury
shares sold
|
25,607
|
(76)
|
640
|
564
|
||||
Tax
benefit from employee benefit plans
|
97
|
97
|
||||||
Recognition
of stock compensation
|
60
|
60
|
||||||
Deferred
benefits for directors – net
|
85
|
(85)
|
-
|
|||||
June
30, 2006
|
21,783,350
|
$ 49,200
|
$ 122,511
|
$ 305,692
|
$ (53,041)
|
$ (6,523)
|
$ (1,208)
|
$ 416,631
|
Balance,
December 31, 2006
|
21,496,793
|
$ 49,200
|
$ 123,170
|
$ 316,457
|
$ (61,855)
|
$ (8,863)
|
$ (1,234)
|
$ 416,875
|
Net
income
|
24,242
|
24,242
|
||||||
Other
comprehensive income
|
(637)
|
(637)
|
||||||
Comprehensive
income
|
23,605
|
|||||||
Common
dividends
|
||||||||
declared
($0.55 per share)
|
(11,506)
|
(11,506)
|
||||||
Treasury
shares purchased
|
(761,398)
|
(23,928)
|
(23,928)
|
|||||
Treasury
shares sold
|
24,525
|
(85)
|
641
|
556
|
||||
Cumulative
effect of change in accounting
|
||||||||
for
uncertainties in income taxes
|
(298)
|
(298)
|
||||||
Tax
benefit from employee benefit plans
|
88
|
88
|
||||||
Recognition
of stock compensation
|
159
|
159
|
||||||
Deferred
benefits for directors – net
|
(39)
|
39
|
-
|
|||||
June
30, 2007
|
20,759,920
|
$49,200
|
$ 123,293
|
$ 328,895
|
$
(85,142)
|
$ (9,500)
|
$ (1,195)
|
$
405,551
|
There
was no activity in Preferred Stock during the six months ended
June 30,
2007 and 2006.
|
WESBANCO,
INC. CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|||
For
the Six Months Ended
|
|||
June
30,
|
|||
(Unaudited,
in thousands)
|
2007
|
2006
|
|
OPERATING
ACTIVITIES:
|
|||
Net
income
|
$ 24,242
|
$ 16,845
|
|
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
|||
Depreciation
|
2,777
|
2,773
|
|
Net
accretion
|
(543)
|
(378)
|
|
Provision
for credit losses
|
3,236
|
4,903
|
|
Net
securities (gains) losses
|
(717)
|
7,850
|
|
Net
gains on sales of loans
|
(715)
|
(441)
|
|
Excess
tax benefits from stock-based compensation arrangements
|
(88)
|
(97)
|
|
Deferred
income taxes
|
2,040
|
(2,580)
|
|
Increase
in cash surrender value of bank-owned life insurance
|
(971)
|
(1,461)
|
|
Loans
originated for sale
|
(62,475)
|
(34,047)
|
|
Proceeds
from the sale of loans originated for sale
|
59,582
|
30,433
|
|
Change
in: other assets and accrued interest receivable
|
1,256
|
19,753
|
|
Change
in: other liabilities and accrued interest payable
|
(1,974)
|
4,679
|
|
Other
– net
|
(988)
|
(3,125)
|
|
Net
cash provided by operating activities
|
24,662
|
45,107
|
|
INVESTING
ACTIVITIES:
|
|||
Securities
available-for-sale:
|
|||
Proceeds
from sales
|
1,213
|
197,786
|
|
Proceeds
from maturities, prepayments and calls
|
84,147
|
138,491
|
|
Purchases
of securities
|
(81,707)
|
(100,911)
|
|
Securities
held-to-maturity:
|
|||
Proceeds
from maturities, prepayments and calls
|
6,754
|
32,306
|
|
Purchases
of securities
|
(200)
|
(1,044)
|
|
Sale
of branches, net of cash
|
-
|
(14,378)
|
|
Net
decrease in loans
|
75,469
|
4,083
|
|
Purchases
of premises and equipment – net
|
(4,096)
|
(1,464)
|
|
Net
cash provided by investing activities
|
81,580
|
254,869
|
|
FINANCING
ACTIVITIES:
|
|||
Decrease
in deposits
|
(2,214)
|
(24,301)
|
|
Decrease
in Federal Home Loan Bank borrowings
|
(91,798)
|
(198,669)
|
|
Increase
(decrease) in other short-term borrowings
|
311
|
(39,515)
|
|
Decrease
in federal funds purchased
|
(5,000)
|
(40,000)
|
|
Excess
tax benefits from stock-based compensation arrangements
|
88
|
97
|
|
Dividends
paid
|
(11,493)
|
(11,493)
|
|
Treasury
shares purchased – net
|
(23,372)
|
(5,348)
|
|
Net
cash used in financing activities
|
(133,478)
|
(319,229)
|
|
Net
decrease in cash and cash equivalents
|
(27,236)
|
(19,253)
|
|
Cash
and cash equivalents at beginning of the period
|
96,605
|
110,608
|
|
Cash
and cash equivalents at end of the period
|
$ 69,369
|
$ 91,355
|
|
SUPPLEMENTAL
DISCLOSURES:
|
|||
Interest
paid on deposits and other borrowings
|
$ 55,166
|
$ 50,536
|
|
Income
taxes paid
|
6,305
|
3,750
|
|
Transfers
of loans to other real estate owned
|
1,412
|
2,338
|
|
Transfers
of held to maturity securities to available for sale
securities
|
340,767
|
-
|
For
the Three Months Ended
|
For
the Six Months Ended
|
||||||
June
30 ,
|
June
30,
|
||||||
(Unaudited,
in thousands, except shares and per share amounts)
|
2007
|
2006
|
2007
|
2006
|
|||
Numerator
for both basic and diluted earnings per share:
|
|||||||
Net
Income
|
$ 12,295
|
$ 11,261
|
$ 24,242
|
$ 16,845
|
|||
Denominator:
|
|||||||
Total
average basic common shares outstanding
|
20,838,798
|
21,893,943
|
21,053,868
|
21,915,824
|
|||
Effect
of dilutive stock options
|
45,358
|
52,886
|
49,561
|
55,128
|
|||
Total
diluted average common shares outstanding
|
20,884,156
|
21,946,829
|
21,103,429
|
21,970,952
|
|||
Earnings
per share - basic
|
$ 0.59
|
$ 0.52
|
$ 1.15
|
$ 0.77
|
|||
Earnings
per share - diluted
|
$ 0.59
|
$ 0.52
|
$ 1.15
|
$ 0.77
|
June
30,
|
December
31,
|
||
(Unaudited,
in thousands)
|
2007
|
2006
|
|
Securities
available-for-sale (at fair value):
|
|||
Other
government agencies and corporations
|
$ 102,841
|
$ 117,066
|
|
Mortgage-backed
securities
|
272,752
|
254,703
|
|
Obligations
of states and political subdivisions
|
345,640
|
17,586
|
|
Corporate
equity securities
|
5,160
|
6,165
|
|
Total
securities available-for-sale
|
726,393
|
395,520
|
|
Securities
held-to-maturity (at amortized cost):
|
|||
Obligations
of states and political subdivisions
|
-
|
341,187
|
|
Total
securities
|
$ 726,393
|
$ 736,707
|
June
30, 2007
|
|||||||||
Less
than 12 months
|
12
months or more
|
Total
|
|||||||
Fair
|
Unrealized
|
#
of
|
Fair
|
Unrealized
|
#
of
|
Fair
|
Unrealized
|
#
of
|
|
(Unaudited,
dollars in thousands)
|
Value
|
Losses
|
Securities
|
Value
|
Losses
|
Securities
|
Value
|
Losses
|
Securities
|
Other
government agencies and corporations
|
$ 31,988
|
$ (12)
|
2
|
$ 70,853
|
$ (1,289)
|
13
|
$ 102,841
|
$ (1,301)
|
15
|
Mortgage-backed
securities
|
125,114
|
(1,980)
|
16
|
146,913
|
(6,259)
|
71
|
272,027
|
(8,239)
|
87
|
Obligations
of states and political subdivisions
|
29,935
|
(157)
|
53
|
82,400
|
(2,301)
|
190
|
112,335
|
(2,458)
|
243
|
Total
temporarily impaired securities
|
$ 187,037
|
$ (2,149)
|
71
|
$ 300,166
|
$ (9,849)
|
274
|
$ 487,203
|
$ (11,998)
|
345
|
December
31, 2006
|
|||||||||
Less
than 12 months
|
12
months or more
|
Total
|
|||||||
Fair
|
Unrealized
|
#
of
|
Fair
|
Unrealized
|
#
of
|
Fair
|
Unrealized
|
#
of
|
|
(Unaudited,
dollars in thousands)
|
Value
|
Losses
|
Securities
|
Value
|
Losses
|
Securities
|
Value
|
Losses
|
Securities
|
Other
government agencies and corporations
|
$ -
|
$ -
|
-
|
$ 102,066
|
$ (1,108)
|
18
|
$ 102,066
|
$ (1,108)
|
18
|
Mortgage-backed
securities
|
80,305
|
(651)
|
10
|
162,053
|
(5,291)
|
69
|
242,358
|
(5,942)
|
79
|
Obligations
of states and political subdivisions
|
4,478
|
(12)
|
8
|
67,772
|
(1,084)
|
166
|
72,250
|
(1,096)
|
174
|
Total
temporarily impaired securities
|
$ 84,783
|
$ (663)
|
18
|
$ 331,891
|
$ (7,483)
|
253
|
$ 416,674
|
$ (8,146)
|
271
|
For
the Six Months Ended
|
||
June
30,
|
||
(Unaudited,
in thousands)
|
2007
|
2006
|
Balance,
at beginning of period
|
$ 31,979
|
$ 30,957
|
Provision
for loan losses
|
2,960
|
4,903
|
Charge-offs
|
(3,990)
|
(6,470)
|
Recoveries
|
979
|
1,202
|
Balance,
at end of period
|
$ 31,928
|
$ 30,592
|
June
30,
|
December
31,
|
|
(Unaudited,
in thousands)
|
2007
|
2006
|
Non-accrual
loans
|
$ 9,651
|
$ 16,154
|
Other
impaired loans
|
5,327
|
2,992
|
Total
impaired loans
|
$ 14,978
|
$ 19,146
|
June
30,
|
December
31,
|
|
(Unaudited,
in thousands)
|
2007
|
2006
|
Balance
of impaired loans with no allocated allowance for loan
losses
|
$ 6,932
|
$ 10,629
|
Balance
of impaired loans with an allocated allowance for loan
losses
|
8,046
|
8,517
|
Total
impaired loans
|
$ 14,978
|
$ 19,146
|
Allowance
for loan losses allocated to impaired loans
|
$ 2,070
|
$ 1,274
|
Scheduled
|
Weighted
|
|
Year (unaudited,
in thousands)
|
Maturity
|
Average
Rate
|
2007
|
$ 45,790
|
3.42%
|
2008
|
17,957
|
3.71%
|
2009
|
79,762
|
4.22%
|
2010
|
99,178
|
4.67%
|
2011
|
5,284
|
3.56%
|
2012
and thereafter
|
17,148
|
5.84%
|
Total
|
$ 265,119
|
4.21%
|
June
30,
|
December
31,
|
|
(Unaudited,
in thousands)
|
2007
|
2006
|
Federal
funds purchased
|
$ 45,000
|
$ 50,000
|
Securities
sold under agreements to repurchase
|
124,780
|
142,591
|
Treasury
tax and loan notes and other
|
2,091
|
1,933
|
Revolving
line of credit
|
26,000
|
8,037
|
Total
|
$ 197,871
|
$ 202,561
|
For
the Three Months Ended
|
For
the Six Months Ended
|
||||||
June
30,
|
June
30,
|
||||||
(Unaudited,
in thousands)
|
2007
|
2006
|
2007
|
2006
|
|||
Service
cost – benefits earned during year
|
$ 604
|
$ 550
|
$ 1,207
|
$ 1,170
|
|||
Interest
cost on projected benefit obligation
|
744
|
660
|
1,489
|
1,368
|
|||
Expected
return on plan assets
|
(1,066)
|
(929)
|
(2,132)
|
(1,858)
|
|||
Amortization
of prior service cost
|
(30)
|
(36)
|
(59)
|
(72)
|
|||
Amortization
of net loss
|
190
|
227
|
380
|
519
|
|||
Net
periodic pension cost
|
$ 442
|
$ 472
|
$ 885
|
$ 1,127
|
For
the Three Months Ended
|
For
the Six Months Ended
|
||||||
June
30,
|
June
30,
|
||||||
(Unaudited,
in thousands)
|
2007
|
2006
|
2007
|
2006
|
|||
Net
Income
|
$ 12,295
|
$ 11,261
|
$ 24,242
|
$ 16,845
|
|||
Securities
available-for-sale:
|
|||||||
Unrealized
gains from transfer of securities from held-to-maturity to available
for
sale
|
-
|
-
|
5,817
|
-
|
|||
Related
income tax (expense) benefit (1)
|
-
|
-
|
(2,298)
|
-
|
|||
Net
change in unrealized gains (losses) on securities
available-for-sale
|
(8,279)
|
(1,517)
|
(6,509)
|
(6,218)
|
|||
Related
income tax (expense) benefit (1)
|
3,270
|
599
|
2,571
|
2,456
|
|||
Net
securities (gains) losses reclassified into earnings
|
(39)
|
(92)
|
(717)
|
7,850
|
|||
Related
income tax expense (benefit) (1)
|
15
|
36
|
283
|
(3,101)
|
|||
Net
effect on other comprehensive income for the period
|
(5,033)
|
(974)
|
(853)
|
987
|
|||
Cash
flow hedge derivatives:
|
|||||||
Net
change in unrealized gains (losses) on derivatives
|
43
|
242
|
53
|
610
|
|||
Related
income tax (expense) benefit
(1)
|
(17)
|
(95)
|
(21)
|
(241)
|
|||
Net
derivative (gains) losses reclassified into earnings
|
-
|
(3)
|
-
|
(6)
|
|||
Related
income tax expense (benefit) (1)
|
-
|
1
|
-
|
2
|
|||
Net
effect on other comprehensive income for the period
|
26
|
145
|
32
|
365
|
|||
Defined
benefit pension plan
|
|||||||
Amortization
of prior service costs
|
(29)
|
-
|
(58)
|
-
|
|||
Related
income tax expense (benefit) (1)
|
11
|
-
|
22
|
-
|
|||
Amortization
of unrealized loss
|
181
|
-
|
362
|
-
|
|||
Related
income tax expense (benefit) (1)
|
(71)
|
-
|
(142)
|
-
|
|||
Net
effect on other comprehensive income for the period
|
92
|
-
|
184
|
-
|
|||
Total
other comprehensive income
|
(4,915)
|
(829)
|
(637)
|
1,352
|
|||
Comprehensive
income
|
$ 7,380
|
$ 10,432
|
$ 23,605
|
$ 18,197
|
Net
Unrealized Gains
|
|||||||
Unrealized
|
(Losses)
on Derivative
|
||||||
Defined
|
Gains
(Losses)
|
Instruments
Used in
|
|||||
Benefit
|
on
Securities
|
Cash
Flow Hedging
|
|||||
(Unaudited,
in thousands)
|
Pension
Plan
|
Available-for-Sale
|
Relationships
|
Total
|
|||
Balance
at January 1, 2006
|
$
-
|
$ (7,463)
|
$ (412)
|
$ (7,875)
|
|||
Period
change, net of tax
|
-
|
987
|
365
|
1,352
|
|||
Balance
at June 30, 2006
|
$
-
|
$ (6,476)
|
$ (47)
|
$ (6,523)
|
|||
Balance
at January 1, 2007
|
$ (5,686)
|
$ (3,118)
|
$ (59)
|
$ (8,863)
|
|||
Period
change, net of tax
|
184
|
(853)
|
32
|
(637)
|
|||
Balance
at June 30, 2007
|
$ (5,502)
|
$ (3,971)
|
$ (27)
|
$ (9,500)
|
June
30,
|
December
31,
|
|
(Unaudited,
in thousands)
|
2007
|
2006
|
Commitments
to extend credit
|
$ 578,539
|
$ 528,888
|
Standby
letters of credit
|
47,331
|
44,168
|
Weighted
|
||||||||||
Weighted
|
Average
|
|||||||||
Average
|
Remaining
|
Aggregate
|
||||||||
Exercise
Price
|
Contractual
|
Intrinsic
|
||||||||
(Unaudited,
in thousands, except shares, per share amounts and
term)
|
Shares
|
Per
Share
|
Term
|
Value
|
||||||
Outstanding
at January 1, 2007
|
403,253
|
$ 24.75
|
||||||||
Granted
|
44,700
|
30.75
|
||||||||
Exercised
|
(24,525)
|
22.68
|
||||||||
Expired
|
-
|
-
|
||||||||
Forfeited
|
-
|
-
|
||||||||
Outstanding
at June 30, 2007
|
423,428
|
$ 25.50
|
6.00
|
$ 1,694
|
||||||
Vested
and exercisable at June 30, 2007
|
281,180
|
$ 23.24
|
4.99
|
$ 1,760
|
Trust
and
|
|||
Community
|
Investment
|
||
(Unaudited,
in thousands)
|
Banking
|
Services
|
Consolidated
|
Income
Statement Data
|
|||
For
the Three Months Ended June 30, 2007
|
|||
Interest
income
|
$ 57,812
|
$ -
|
$ 57,812
|
Interest
expense
|
28,626
|
-
|
28,626
|
Net
interest income
|
29,186
|
-
|
29,186
|
Provision
for loan losses
|
1,776
|
-
|
1,776
|
Net
interest income after provision for loan losses
|
27,410
|
-
|
27,410
|
Non-interest
income
|
9,567
|
3,885
|
13,452
|
Non-interest
expense
|
24,788
|
2,184
|
26,972
|
Income
before provision for income taxes
|
12,189
|
1,701
|
13,890
|
Provision
for income taxes
|
915
|
680
|
1,595
|
Net
income
|
$ 11,274
|
$ 1,021
|
$ 12,295
|
For
the Three Months Ended June 30, 2006
|
|||
Interest
income
|
$ 55,994
|
$ -
|
$ 55,994
|
Interest
expense
|
25,130
|
-
|
25,130
|
Net
interest income
|
30,864
|
-
|
30,864
|
Provision
for loan losses
|
2,263
|
-
|
2,263
|
Net
interest income after provision for loan losses
|
28,601
|
-
|
28,601
|
Non-interest
income
|
8,853
|
3,537
|
12,390
|
Non-interest
expense
|
24,700
|
2,288
|
26,988
|
Income
before provision for income taxes
|
12,754
|
1,249
|
14,003
|
Provision
for income taxes
|
2,243
|
499
|
2,742
|
Net
income
|
$ 10,511
|
$ 750
|
$ 11,261
|
For
the Six Months Ended June 30, 2007
|
|||
Interest
income
|
$ 115,005
|
$ -
|
$ 115,005
|
Interest
expense
|
55,826
|
-
|
55,826
|
Net
interest income
|
59,179
|
-
|
59,179
|
Provision
for loan losses
|
3,236
|
-
|
3,236
|
Net
interest income after provision for loan losses
|
55,943
|
-
|
55,943
|
Non-interest
income
|
18,465
|
8,223
|
26,688
|
Non-interest
expense
|
48,752
|
4,605
|
53,357
|
Income
before provision for income taxes
|
25,656
|
3,618
|
29,274
|
Provision
for income taxes
|
3,585
|
1,447
|
5,032
|
Net
income
|
$ 22,071
|
$ 2,171
|
$ 24,242
|
For
the Six Months Ended June 30, 2006
|
|||
Interest
income
|
$ 112,441
|
$ -
|
$ 112,441
|
Interest
expense
|
50,594
|
-
|
50,594
|
Net
interest income
|
61,847
|
-
|
61,847
|
Provision
for loan losses
|
4,903
|
-
|
4,903
|
Net
interest income after provision for loan losses
|
56,944
|
-
|
56,944
|
Non-interest
income
|
10,209
|
7,595
|
17,804
|
Non-interest
expense
|
49,206
|
4,594
|
53,800
|
Income
before provision for income taxes
|
17,947
|
3,001
|
20,948
|
Provision
for income taxes
|
2,903
|
1,200
|
4,103
|
Net
income
|
$ 15,044
|
$ 1,801
|
$ 16,845
|
NON-GAAP
RECONCILIATION
|
|||||
For
the Three Months Ended
|
For
the Six Months Ended
|
||||
June
30,
|
June
30,
|
||||
2007
|
2006
|
2007
|
2006
|
||
Net
income
|
$ 12,295
|
$ 11,261
|
$ 24,242
|
$ 16,845
|
|
Add:
restructuring expenses, net of tax (1)
|
-
|
-
|
-
|
324
|
|
Add:
other-than-temporary impairment losses, net of tax
(1)
|
-
|
-
|
-
|
4,829
|
|
Subtract:
adjustment to correct
tax liability accrued in prior periods (5)
|
(1,615)
|
-
|
(1,615)
|
-
|
|
Subtract:
gains on sales of branch offices, net of tax (1)
(4)
|
-
|
(92)
|
(588)
|
(1,571)
|
|
Core
operating earnings
|
$ 10,680
|
$ 11,169
|
$ 22,039
|
$ 20,427
|
|
Net
income per common share
(3)
|
$ 0.59
|
$ 0.52
|
$ 1.15
|
$ 0.77
|
|
Effects
of restructuring expenses, net of tax
(1)
|
-
|
-
|
-
|
0.02
|
|
Effects
of other-than-temporary impairment losses, net of tax
(1)
|
-
|
-
|
-
|
0.22
|
|
Effects
of adjustment to correct tax liability accrued in prior periods
(5)
|
(0.08)
|
-
|
(0.08)
|
-
|
|
Effects
of gains on sales of branch offices, net of tax
(1),(4)
|
-
|
-
|
(0.03)
|
(0.07)
|
|
Core
operating earnings per common share
(3)
|
$ 0.51
|
$ 0.52
|
$ 1.04
|
$ 0.94
|
|
Return
on average assets
|
1.23
%
|
1.09
%
|
1.22
%
|
0.80
%
|
|
Effects
of restructuring expenses, net of tax
(1)
|
0.00
%
|
0.00
%
|
0.00
%
|
0.01
%
|
|
Effects
of other-than-temporary impairment losses, net of tax
(1)
|
0.00
%
|
0.00
%
|
0.00
%
|
0.11
%
|
|
Effects
of adjustment to correct tax liability accrued in prior periods
(5)
|
(0.04%)
|
0.00
%
|
(0.04%)
|
0.00
%
|
|
Effects
of gains on sales of branch offices, net of tax
(1)(4)
|
0.00
%
|
(0.01%)
|
(0.01%)
|
(0.04%)
|
|
Core
operating return on average assets
|
1.19
%
|
1.08
%
|
1.17
%
|
0.88
%
|
|
Return
on average equity
|
12.12
%
|
10.83
%
|
11.94
%
|
8.16
%
|
|
Effects
of restructuring expenses, net of tax
(1)
|
0.00
%
|
0.00
%
|
0.00
%
|
0.08
%
|
|
Effects
of other-than-temporary impairment losses, net of tax
(1)
|
0.00
%
|
0.00
%
|
0.00
%
|
1.16
%
|
|
Effects
of adjustment to correct tax liability accrued in prior periods
(5)
|
(0.40%)
|
0.00
%
|
(0.39%)
|
0.00
%
|
|
Effects
of gains on sales of branch offices, net of tax
(1)(4)
|
0.00
%
|
(0.09%)
|
(0.14%)
|
(0.38%)
|
|
Core
operating return on average equity
|
11.72
%
|
10.74
%
|
11.41
%
|
9.02
%
|
|
Efficiency
ratio
(2)
|
60.50
%
|
59.40
%
|
59.40
%
|
63.93
%
|
|
Effects
of restructuring expenses, net of tax
(1)
|
0.00
%
|
0.00
%
|
0.00
%
|
(0.40%)
|
|
Effects
of other-than-temporary impairment losses, net of tax
(1)
|
0.00
%
|
0.00
%
|
0.00
%
|
(6.05%)
|
|
Effects
of gains on sales of branch offices, net of tax
(1)(4)
|
0.00
%
|
0.20
%
|
0.66
%
|
1.97
%
|
|
Core
efficiency ratio
(2)
|
60.50
%
|
59.60
%
|
60.06
%
|
59.45
%
|
For
the Three Months Ended
|
For
the Six Months Ended
|
||||||||||
June
30,
|
June
30,
|
||||||||||
(unaudited,
in thousands)
|
2007
|
2006
|
2007
|
2006
|
|||||||
Net
interest income
|
$ 29,186
|
$ 30,864
|
$ 59,179
|
$ 61,847
|
|||||||
Taxable
equivalent adjustments to net interest income
|
1,947
|
2,182
|
3,959
|
4,502
|
|||||||
Net
interest income, fully taxable equivalent
|
$ 31,133
|
$ 33,046
|
$ 63,138
|
$ 66,349
|
|||||||
Net
interest spread, non-taxable equivalent
|
2.78%
|
2.94%
|
2.86%
|
2.90%
|
|||||||
Benefit
of net non-interest bearing liabilities
|
0.46%
|
0.36%
|
0.44%
|
0.34%
|
|||||||
Net
interest margin
|
3.24%
|
3.30%
|
3.30%
|
3.24%
|
|||||||
Taxable
equivalent adjustment
|
0.22%
|
0.24%
|
0.22%
|
0.23%
|
|||||||
Net
interest margin, fully taxable equivalent
|
3.46%
|
3.54%
|
3.52%
|
3.47%
|
For
the Three Months Ended June 30,
|
For
the Six Months Ended June 30,
|
|||||||||
2007
|
2006
|
2007
|
2006
|
|||||||
Average
|
Average
|
Average
|
Average
|
Average
|
Average
|
Average
|
Average
|
|||
(unaudited,
in thousands)
|
Balance
|
Rate
|
Balance
|
Rate
|
Balance
|
Rate
|
Balance
|
Rate
|
||
ASSETS
|
||||||||||
Due
from banks - interest bearing
|
$
1,466
|
2.19%
|
$ 2,738
|
1.61%
|
$
1,388
|
2.18%
|
$
2,274
|
1.34%
|
||
Loans,
net of unearned income
(1)
|
2,832,325
|
6.85%
|
2,925,875
|
6.45%
|
2,848,651
|
6.84%
|
2,926,697
|
6.39%
|
||
Securities:
(2)
|
||||||||||
Taxable
|
408,187
|
5.01%
|
403,013
|
4.39%
|
400,049
|
4.94%
|
492,704
|
4.22%
|
||
Tax-exempt
(3)
|
332,504
|
6.69%
|
373,908
|
6.67%
|
337,519
|
6.70%
|
385,977
|
6.67%
|
||
Total securities
|
740,691
|
5.76%
|
776,921
|
5.48%
|
737,568
|
5.75%
|
878,681
|
5.29%
|
||
Federal
funds sold
|
31,767
|
5.45%
|
7,253
|
4.76%
|
20,513
|
5.27%
|
3,646
|
4.72%
|
||
Other
earning assets
|
21,517
|
5.78%
|
31,890
|
5.35%
|
22,123
|
5.53%
|
37,176
|
4.69%
|
||
Total
earning assets
(3)
|
3,627,766
|
6.60%
|
3,744,677
|
6.23%
|
3,630,243
|
6.60%
|
3,848,474
|
6.12%
|
||
Other
assets
|
383,209
|
396,758
|
387,402
|
396,938
|
||||||
Total
Assets
|
$
4,010,975
|
$
4,141,435
|
$
4,017,645
|
$
4,245,412
|
||||||
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
||||||||||
Interest
bearing demand deposits
|
$
357,780
|
1.37%
|
$
350,860
|
1.10%
|
$ 350,598
|
1.29%
|
$
335,741
|
0.90%
|
||
Money
market accounts
|
372,368
|
2.72%
|
389,506
|
2.16%
|
364,158
|
2.61%
|
407,347
|
2.12%
|
||
Savings
deposits
|
428,268
|
1.34%
|
465,994
|
1.27%
|
433,870
|
1.36%
|
465,652
|
1.19%
|
||
Certificates
of deposit
|
1,442,201
|
4.60%
|
1,400,929
|
3.82%
|
1,440,551
|
4.51%
|
1,405,270
|
3.71%
|
||
Total
interest bearing deposits
|
2,600,617
|
3.35%
|
2,607,289
|
2.75%
|
2,589,177
|
3.28%
|
2,614,010
|
2.65%
|
||
Federal
Home Loan Bank borrowings
|
327,172
|
4.08%
|
470,221
|
3.68%
|
338,639
|
3.95%
|
536,111
|
3.64%
|
||
Other
borrowings
|
167,772
|
5.14%
|
139,798
|
4.40%
|
171,080
|
5.00%
|
177,235
|
4.30%
|
||
Junior
subordinated debt owed to unconsolidated
subsidiary
trusts
|
87,638
|
6.49%
|
87,638
|
6.41%
|
87,638
|
6.51%
|
87,638
|
6.34%
|
||
Total
interest bearing liabilities
|
3,183,199
|
3.61%
|
3,304,946
|
3.05%
|
3,186,534
|
3.53%
|
3,414,994
|
2.99%
|
||
Non-interest
bearing demand deposits
|
384,435
|
383,779
|
384,636
|
378,449
|
||||||
Other
liabilities
|
36,294
|
35,601
|
37,097
|
35,584
|
||||||
Shareholders'
Equity
|
407,047
|
417,109
|
409,378
|
416,385
|
||||||
Total
Liabilities and
|
||||||||||
Shareholders’
Equity
|
$
4,010,975
|
$
4,141,435
|
$
4,017,645
|
$
4,245,412
|
||||||
Taxable
equivalent net yield on average earning assets
|
3.46%
|
3.54%
|
3.52%
|
3.47%
|
||||||
Net
Interest Spread
|
2.99%
|
3.18%
|
3.07%
|
3.13%
|
(1)
|
Total
loans are gross of the allowance for loan losses, net of unearned
income
and include loans held for sale. Non-accrual loans were included
in the
average volume for the entire period. Loan fees included in interest
income on loans totaled $1.0 million and $1.9 million for the three
and
six months ended June 30, 2007, respectively and $0.9 million and
$1.8
million for the same periods in
2006.
|
(2)
|
Average
yields on available-for-sale securities have been calculated based
on
amortized cost.
|
(3)
|
The
yield on earning assets and the net interest margin 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
using the federal statutory tax rate of 35% for each period presented.
WesBanco believes this measure to be the preferred industry measurement
of
net interest income and provides relevant comparison between taxable
and
non-taxable amounts.
|
Three
Months Ended June 30, 2007
|
Six
Months Ended June 30, 2007
|
||||||||
Compared
to 2006
|
Compared
to 2006
|
||||||||
Net
Increase
|
Net
Increase
|
||||||||
(in
thousands)
|
Volume
|
Rate
|
(Decrease)
|
Volume
|
Rate
|
(Decrease)
|
|||
Increase
(decrease) in interest income:
|
|||||||||
Due
from banks - interest bearing
|
$ 7
|
$ 14
|
$ 21
|
$ 7
|
$ 30
|
$ 37
|
|||
Loans,
net of unearned income
|
(1,535)
|
2,866
|
1,331
|
(2,521)
|
6,389
|
3,868
|
|||
Taxable
securities
|
50
|
619
|
669
|
(2,123)
|
1,595
|
(528)
|
|||
Tax-exempt
securities
(2)
|
(692)
|
20
|
(672)
|
(1,624)
|
73
|
(1,551)
|
|||
Federal
funds sold
|
333
|
14
|
347
|
444
|
11
|
455
|
|||
Other
interest income
|
(146)
|
33
|
(113)
|
(397)
|
137
|
(260)
|
|||
Total
interest income change
(2)
|
(1,983)
|
3,566
|
1,583
|
(6,214)
|
8,235
|
2,021
|
|||
Increase
(decrease) in interest expense:
|
|||||||||
Interest
bearing demand deposits
|
19
|
246
|
265
|
67
|
673
|
740
|
|||
Money
market accounts
|
(96)
|
532
|
436
|
(488)
|
919
|
431
|
|||
Savings
deposits
|
(124)
|
77
|
(47)
|
(197)
|
374
|
177
|
|||
Certificates
of deposit
|
403
|
2,791
|
3,194
|
663
|
5,717
|
6,380
|
|||
Federal
Home Loan Bank borrowings
|
(1,418)
|
433
|
(985)
|
(3,813)
|
780
|
(3,033)
|
|||
Other
borrowings
|
335
|
279
|
614
|
(135)
|
599
|
464
|
|||
Junior
subordinated debt owed to
unconsolidated
subsidiary trusts
|
-
|
19
|
19
|
-
|
73
|
73
|
|||
Total
interest expense change
|
(881)
|
4,377
|
3,496
|
(3,903)
|
9,135
|
5,232
|
|||
Net
interest income
decrease
(2)
|
$ (1,102)
|
$ (811)
|
$ (1,913)
|
$ (2,311)
|
$ (900)
|
$ (3,211)
|
For
the Three Months
|
For
the Six Months
|
||||||||||
Ended
June 30,
|
Ended
June 30,
|
||||||||||
(dollars
in thousands)
|
2007
|
2006
|
$
Change
|
%
Change
|
2007
|
2006
|
$
Change
|
%
Change
|
|||
Trust
fees
|
$ 3,885
|
$ 3,537
|
$ 348
|
9.8%
|
$ 8,223
|
$ 7,595
|
$ 628
|
8.3%
|
|||
Service
charges on deposits
|
4,431
|
4,179
|
252
|
6.0%
|
8,314
|
7,976
|
338
|
4.2%
|
|||
Bank-owned
life insurance
|
1,672
|
732
|
940
|
128.4%
|
2,420
|
1,461
|
959
|
65.6%
|
|||
Net
securities gains (losses)
|
39
|
92
|
(53)
|
(57.6%)
|
717
|
(7,850)
|
8,567
|
(109.1%)
|
|||
Net
gains on sales of loans
|
379
|
398
|
(19)
|
(4.8%)
|
715
|
441
|
274
|
62.1%
|
|||
Gains
on early extinguishment of debt
|
895
|
1,047
|
(152)
|
(14.5%)
|
895
|
1,047
|
(152)
|
(14.5%)
|
|||
Other
income
|
2,151
|
2,405
|
(254)
|
(10.6%)
|
5,404
|
7,134
|
(1,730)
|
(24.3%)
|
|||
Total
non-interest income
|
$ 13,452
|
$ 12,390
|
$ 1,062
|
8.6%
|
$ 26,688
|
$ 17,804
|
$ 8,884
|
49.9%
|
For
the Three Months
|
For
the Six Months
|
||||||||||
Ended
June 30,
|
Ended
June 30,
|
||||||||||
(dollars
in thousands)
|
2007
|
2006
|
$
Change
|
%
Change
|
2007
|
2006
|
$
Change
|
%
Change
|
|||
Salaries
and wages
|
$
10,186
|
$ 9,928
|
$ 258
|
2.6%
|
$
20,368
|
$
19,832
|
$ 536
|
2.7%
|
|||
Employee
benefits
|
3,629
|
3,387
|
242
|
7.1%
|
7,325
|
6,899
|
426
|
6.2%
|
|||
Net
occupancy
|
1,866
|
1,866
|
-
|
0.0%
|
3,869
|
3,879
|
(10)
|
(0.3%)
|
|||
Equipment
|
1,884
|
1,993
|
(109)
|
(5.5%)
|
3,786
|
4,023
|
(237)
|
(5.9%)
|
|||
Marketing
|
1,414
|
1,837
|
(423)
|
(23.0%)
|
2,036
|
2,911
|
(875)
|
(30.1%)
|
|||
Amortization
of intangible assets
|
596
|
633
|
(37)
|
(5.8%)
|
1,192
|
1,266
|
(74)
|
(5.8%)
|
|||
Restructuring
expenses
|
-
|
-
|
-
|
0.0%
|
-
|
540
|
(540)
|
(100.0%)
|
|||
Other
operating expenses
|
7,397
|
7,344
|
53
|
0.7%
|
14,781
|
14,450
|
331
|
2.3%
|
|||
Total
non-interest expense
|
$
26,972
|
$
26,988
|
$ (16)
|
(0.1%)
|
$
53,357
|
$
53,800
|
$ (443)
|
(0.8%)
|
June
30,
|
December
31,
|
||||
(dollars
in thousands)
|
2007
|
2006
|
$
Change
|
%
Change
|
|
Securities
available-for-sale (at fair value):
|
|||||
Other
government agencies and corporations
|
$ 102,841
|
$ 117,066
|
$ (14,225)
|
(12.2%)
|
|
Mortgage-backed
securities
|
272,752
|
254,703
|
18,049
|
7.1%
|
|
Obligations
of states and political subdivisions
|
345,640
|
17,586
|
328,054
|
1865.4%
|
|
Corporate
equity securities
|
5,160
|
6,165
|
(1,005)
|
(16.3%)
|
|
Total
securities available-for-sale
|
726,393
|
395,520
|
330,873
|
83.7%
|
|
Securities
held-to-maturity (at amortized cost):
|
|||||
Obligations
of states and political subdivisions
|
-
|
341,187
|
(341,187)
|
(100.0%)
|
|
Total
securities
|
$ 726,393
|
$ 736,707
|
$ (10,314)
|
(1.4%)
|
|
Available-for-sale
securities:
|
|||||
Weighted
average yield at the respective period end
|
5.57%
|
4.70%
|
|||
As
a % of total securities
|
100.0%
|
53.7%
|
|||
Weighted
average life (in years)
|
4.0
|
3.4
|
|||
Held-to-maturity
securities:
|
|||||
Weighted
average yield at the respective period end
|
-
|
6.79%
|
|||
As
a % of total securities
|
-
|
46.3%
|
|||
Weighted
average life (in years)
|
-
|
4.1
|
June
30, 2007
|
December
31, 2006
|
||||
(unaudited,
in thousands)
|
Amount
|
%
of Loans
|
Amount
|
%
of Loans
|
|
Loans:
(1)
|
|||||
Commercial
|
$ 403,451
|
14.2%
|
$ 409,347
|
14.1%
|
|
Commercial
real estate
|
1,157,055
|
40.8%
|
1,165,823
|
40.0%
|
|
Residential
real estate
|
841,512
|
29.7%
|
896,533
|
30.8%
|
|
Home
equity
|
155,231
|
5.5%
|
161,602
|
5.6%
|
|
Consumer
|
272,549
|
9.6%
|
274,908
|
9.4%
|
|
Total
portfolio loans
|
2,829,798
|
99.8%
|
2,908,213
|
99.9%
|
|
Loans
held for sale
|
6,778
|
0.2%
|
3,170
|
0.1%
|
|
Total
Loans
|
$ 2,836,576
|
100.0%
|
$ 2,911,383
|
100.0%
|
June
30,
|
December
31,
|
||
(unaudited,
in thousands)
|
2007
|
2006
|
|
Non-accrual:
|
|||
Commercial
|
$ 3,218
|
$ 4,122
|
|
Commercial
real estate
|
6,429
|
11,910
|
|
Residential
real estate
|
3
|
102
|
|
Home
equity
|
-
|
-
|
|
Consumer
|
1
|
20
|
|
Loans
held for sale
|
-
|
-
|
|
Total
non-performing loans
|
9,651
|
16,154
|
|
Other
real estate owned and repossessed assets
|
4,067
|
4,052
|
|
Total
non-performing assets
|
$ 13,718
|
$ 20,206
|
June
30,
|
December
31,
|
||
(unaudited,
in thousands)
|
2007
|
2006
|
|
Commercial
and industrial
|
$ 818
|
$ 693
|
|
Commercial
real estate
|
3,687
|
2,697
|
|
Residential
real estate
|
2,485
|
1,951
|
|
Home
equity
|
432
|
579
|
|
Consumer
|
447
|
568
|
|
Total
portfolio loans past due 90 days or more
|
7,869
|
6,488
|
|
Loans
held for sale
|
-
|
-
|
|
Total
loans past due 90 days or more
|
$ 7,869
|
$ 6,488
|
For
the Six Months Ended
|
|||
June
30,
|
June
30,
|
||
(dollars
in thousands)
|
2007
|
2006
|
|
Beginning
balance of allowance for loan losses
|
$ 31,979
|
$ 30,957
|
|
Provision
for loan losses
|
2,960
|
4,903
|
|
Charge-offs:
|
|||
Commercial
and industrial
|
770
|
3,323
|
|
Commercial
real estate
|
516
|
601
|
|
Residential
real estate
|
149
|
188
|
|
Home
equity
|
265
|
113
|
|
Consumer
|
1,828
|
1,802
|
|
Total
loan charge-offs
|
3,528
|
6,027
|
|
Deposit
account overdrafts
|
462
|
443
|
|
Total
loan and deposit account overdraft charge-offs
|
3,990
|
6,470
|
|
Recoveries:
|
|||
Commercial
|
52
|
307
|
|
Commercial
real estate
|
116
|
16
|
|
Residential
real estate
|
29
|
33
|
|
Home
equity
|
-
|
-
|
|
Consumer
|
662
|
790
|
|
Total
loan recoveries
|
859
|
1,146
|
|
Deposit
account overdrafts
|
120
|
56
|
|
Total
loan and deposit account overdraft recoveries
|
979
|
1,202
|
|
Net
loan and deposit account overdraft charge-offs
|
3,011
|
5,268
|
|
Ending
balance of allowance for loan losses
|
$ 31,928
|
$ 30,592
|
|
Net
charge-offs as a percentage of average total loans:
|
|||
Commercial
|
0.36%
|
1.46%
|
|
Commercial
real estate
|
0.07%
|
0.10%
|
|
Residential
real estate
|
0.03%
|
0.03%
|
|
Home
equity
|
0.34%
|
0.13%
|
|
Consumer
|
0.86%
|
0.75%
|
|
Total
loan charge-offs
|
0.19%
|
0.36%
|
|
Allowance
for loan losses as a percentage of total loans
|
1.13%
|
1.05%
|
|
Allowance
for loan losses to total non-performing loans
|
3.31x
|
2.29x
|
|
Allowance
for loan losses to total non-performing loans and
|
|||
loans
past due 90 days or more
|
1.82x
|
1.32x
|
June
30,
|
Percent
of
|
December
31,
|
Percent
of
|
||
(unaudited,
in thousands)
|
2007
|
Total
|
2006
|
Total
|
|
Commercial
and industrial
|
$ 11,254
|
35.2%
|
$ 11,728
|
36.7%
|
|
Commercial
real estate
|
13,179
|
41.3%
|
13,915
|
43.5%
|
|
Residential
real estate
|
1,939
|
6.1%
|
1,258
|
3.9%
|
|
Home
equity
|
811
|
2.6%
|
400
|
1.3%
|
|
Consumer
|
3,840
|
12.0%
|
3,773
|
11.8%
|
|
Deposit
account overdrafts
|
905
|
2.8%
|
904
|
2.8%
|
|
Total
allowance for loan losses
|
$ 31,928
|
100.0%
|
$ 31,978
|
100.0%
|
|
Components
of the allowance for loan losses:
|
|||||
General
reserves pursuant to SFAS No. 5
|
$ 29,858
|
$ 30,704
|
|||
Specific
reserves pursuant to SFAS No. 114
|
2,070
|
1,274
|
|||
Total
allowance for loan losses
|
$ 31,928
|
$ 31,978
|
June
30,
|
December
31,
|
||||
(unaudited,
in thousands)
|
2007
|
2006
|
$
Change
|
%
Change
|
|
Non-interest
bearing demand
|
$ 394,660
|
$ 401,909
|
$ (7,249)
|
(1.8%)
|
|
Interest
bearing demand
|
351,233
|
356,088
|
(4,855)
|
(1.4%)
|
|
Money
market
|
381,281
|
354,082
|
27,199
|
7.7%
|
|
Savings
deposits
|
421,513
|
441,226
|
(19,713)
|
(4.5%)
|
|
Certificates
of deposit
|
1,444,656
|
1,442,242
|
2,414
|
0.2%
|
|
Total
deposits
|
$ 2,993,343
|
$ 2,995,547
|
$ (2,204)
|
(0.1%)
|
June
30,
|
December
31,
|
||||
(in
thousands)
|
2007
|
2006
|
$
Change
|
%
Change
|
|
Federal
Home Loan Bank borrowings
|
$ 265,119
|
$ 358,907
|
$ (93,788)
|
(26.1%)
|
|
Other
short-term borrowings
|
197,871
|
202,561
|
(4,690)
|
(2.3%)
|
|
Junior
subordinated debt owed to unconsolidated subsidiary trusts
|
87,638
|
87,638
|
-
|
-
|
|
Total
borrowings
|
$ 550,628
|
$ 649,106
|
$ (98,478)
|
(15.2%)
|
Minimum
|
Well
|
June
30, 2007
|
December
31, 2006
|
|||
(Unaudited,
dollars in thousands)
|
Value
(1)
|
Capitalized
(2)
|
Amount
|
Ratio
|
Amount
|
Ratio
|
WesBanco,
Inc.
|
||||||
Tier
1 Leverage
|
4.00%(3)
|
N/A
|
$ 356,095
|
9.21%
|
$ 365,591
|
9.27%
|
Tier
1 Capital to Risk-Weighted Assets
|
4.00%
|
6.00%
|
356,095
|
11.98%
|
365,591
|
12.35%
|
Total
Capital to Risk-Weighted Assets
|
8.00%
|
10.00%
|
388,456
|
13.07%
|
397,741
|
13.44%
|
WesBanco
Bank, Inc.
|
||||||
Tier
1 Leverage
|
4.00%
|
5.00%
|
369,556
|
9.58%
|
363,647
|
9.24%
|
Tier
1 Capital to Risk-Weighted Assets
|
4.00%
|
6.00%
|
369,556
|
12.50%
|
363,647
|
12.35%
|
Total
Capital to Risk-Weighted Assets
|
8.00%
|
10.00%
|
401,917
|
13.59%
|
395,796
|
13.44%
|
Immediate
Change in
|
Percentage
Change in
|
||
Interest
Rates
|
Net
Interest Income from Base over One Year
|
ALCO
|
|
(basis
points)
|
June
30,2007
|
December
31, 2006
|
Guidelines
|
+200
|
(6.5%)
|
(6.7%)
|
+/-
10.0%
|
+100
|
(2.9%)
|
(3.3%)
|
N/A
|
-100
|
3.4%
|
2.8%
|
N/A
|
-200
|
4.3%
|
2.5%
|
+/-
10.0%
|
Period
|
Total
Number of Shares Purchased
|
Average
Price Paid per Share
|
Total
Number of Shares Purchased as Part of Publicly Announced
Plans
|
Maximum
Number of Shares that May Yet Be Purchased Under the
Plans
|
Balance
at March 31, 2007
|
1,069,745
|
|||
April
1, 2007 to April 30, 2007
|
||||
Open
market repurchases
|
50,500
|
$ 31.32
|
50,500
|
1,019,245
|
Other
transactions(1)
|
22,919
|
$ 31.02
|
N/A
|
N/A
|
May
1, 2007 to May 31, 2007
|
||||
Open
market repurchases
|
150,645
|
31.00
|
150,645
|
868,600
|
Other
transactions(1)
|
1,046
|
30.73
|
N/A
|
N/A
|
June
1, 2007 to June 30, 2007
|
||||
Open
market repurchases
|
-
|
-
|
-
|
868,600
|
Other
transactions(1)
|
733
|
30.55
|
N/A
|
N/A
|
Second
Quarter 2007
|
||||
Open
market repurchases
|
201,145
|
31.08
|
201,145
|
868,600
|
Other
transactions(1)
|
24,698
|
30.99
|
N/A
|
N/A
|
Total
|
225,843
|
$ 31.07
|
201,145
|
868,600
|
31.1
|
Chief
Executive Officer’s Certification Pursuant to 18 U.S.C. Section 1350, as
Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
|
31.2
|
Chief
Financial Officer’s Certification Pursuant to 18 U.S.C. Section 1350, as
Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
|
32.1
|
Chief
Executive Officer’s and Chief Financial Officer’s Certification Pursuant
to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of
the
Sarbanes-Oxley Act of 2002.
|
WESBANCO,
INC.
|
||
Date:
August 3, 2007
|
/s/ Paul M. Limbert | |
Paul
M. Limbert
|
||
President
and Chief Executive Officer
|
||
Date:
August 3, 2007
|
/s/ Robert H. Young | |
Robert
H. Young
|
||
Executive
Vice President and Chief Financial Officer
|
||