EX-99 2 ex99.htm PRESS RELEASE Press Release

NEWS FOR IMMEDIATE RELEASE
 
 July 19, 2006  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 Second Quarter and First Half of 2006 Results

Wheeling, WV… Paul M. Limbert, President and Chief Executive Officer of WesBanco, Inc., (NASDAQ: WSBC) a Wheeling, West Virginia based multi-state bank holding company, today announced earnings for the second quarter and six months ended June 30, 2006.

Net income was $11.3 million for both the second quarter of 2006 and the second quarter of 2005, while diluted earnings per share for the second quarter ended June 30, 2006 were $0.52 compared to $0.50 for the same period in 2005, an increase of 4.0%. Highlighting the quarter was an expanded net interest margin, as a result of the balance sheet restructuring undertaken and disclosed late last quarter, with the margin increasing to 3.54% for the second quarter as compared to 3.40% for the first quarter ended March 31, 2006, and also up from last year’s second quarter of 3.52%. Also noteworthy to the second quarter were higher service charges on deposit accounts, increasing non-interest income from the prior year. For the quarter, core operating earnings were similar to reported earnings. Return on average assets for the quarter was also up to 1.09% from last year’s 0.99%, and return on average equity grew to 10.83% from last year’s 10.66%.

Net income for the six months ended June 30, 2006 decreased 24.6% to $16.8 million as compared to $22.3 million for the same period in 2005, while diluted earnings per share for the first half ended June 30, 2006 were $0.77 compared to $0.98 for 2005. The decrease in year to date net income is primarily attributable to the $4.8 million in after-tax losses arising in connection with the balance sheet repositioning announced in the first quarter and the $0.3 million in after-tax costs associated with the restructuring of a business unit in the first quarter, which were offset by the $1.6 million after-tax gain on the sale of the Ritchie County branches in the first quarter. Core operating earnings on a year-to-date basis, excluding these items, were $20.4 million or $0.94 per diluted share as compared to $22.7 million or $0.99 per diluted share for the six months ended June 30, 2005.

“Despite the pressure on interest spread based revenues caused by a relatively flat yield curve and a highly competitive environment, our recent balance sheet repositioning helped to stabilize our net interest margin and resulted in an immediate improvement in the margin,” stated Mr. Limbert. “Additionally, our intense marketing efforts over the last two quarters have resulted in a significant number of new non-interest bearing accounts and customers that will serve as a source of long-term revenue growth as we broaden our relationship with them. Our recent introduction of a new deposit account program has resulted in a strong increase in deposit activity fees. Finally, our branch optimization project and focus on cost containment have resulted in immediate savings across the board that have helped fund our marketing efforts and have positioned us for increased future profitability. We continue to remain focused on long-term profitability and increased value for our shareholders.”
 
Page 2

 
Highlights for the three and six month periods ended June 30, 2006:

·  
Net interest income for the second quarter and first half of 2006 decreased $3.0 million or 8.9% and $5.5 million or 8.2%, respectively, compared to the same periods in 2005. The net interest margin for the second quarter and first half of 2006 was 3.54% and 3.47%, respectively, compared to 3.52% and 3.51% for the same periods in 2005. On a linked quarter basis, the net interest margin increased 14 bp.

·  
Non-interest income in the second quarter increased $2.4 million or 24.6% as compared to the second quarter of 2005. Non-interest income for the first half of the year, net of the $8.0 million loss associated with WesBanco’s balance sheet repositioning and the gain of $2.6 million on sale of the Ritchie County branches in the first quarter, increased $3.9 million or 20.1% as compared to the first half of 2005. The increase in both periods was primarily driven by an increase in activity charges on deposit accounts resulting from new fee-related programs introduced in the fourth quarter of 2005, and approximately $1.0 million of gains on the early payoff of certain callable Federal Home Loan Bank Advances..

·  
WesBanco’s provision for loan losses increased $0.3 million or 17.9% and $1.1 million or 30.3% over the second quarter and first half of 2005, respectively, primarily due to a $5.0 million commercial loan participation being placed on non-accrual in the first quarter. Net charge-offs on an annualized basis were 0.54% for the second quarter as compared to 0.24% for the second quarter of 2005 primarily due to the $3.1 million write-down of the $5.0 million commercial loan participation discussed above. The allowance for loan losses as a percentage of total loans was 1.05% at June 30, 2006, down from 1.10% at June 30, 2005.

·  
Non-interest expense decreased $0.5 million or 1.8% and $0.8 million or 1.5% compared to the second quarter and first half of 2005. The decrease in both periods was due to a reduction in full-time equivalent employees and the result of management initiatives in attempting to contain overall operating costs. Salaries and employee benefits for the quarter were down 8.3% to $13.3 million from last year’s $14.5 million, and on a year-to-date basis, a 6.0% decrease has been realized from $28.4 million to $26.7 million. Full-time equivalent employees at June 30, 2006 were 1,176 compared to 1,311 at June 30, 2005. Marketing expense associated with WesBanco’s efforts to acquire new accounts and customers was the only major operating expense category to experience a significant increase, up from last year’s $1.0 million to this quarter’s $1.8 million, and year-to-date it has increased 50.9% from $1.9 million to $2.9 million.
 
·  
The provision for income taxes decreased $0.4 million or 12.6% and $2.0 million or 32.9% for the second quarter and first half of 2006 compared to the same periods in 2005 due to a decrease in pre-tax income and the resulting corresponding decrease in the effective tax rate. The effective tax rate for both the second quarter and first half of 2006 was 19.6% compared to 21.8% and 21.5% for the same periods in 2005. The effective tax rate for the year is expected to range from 19.5% to 20.0%.

·  
Total loans as of June 30, 2006 decreased $17.0 million and $24.5 million as compared to June 30, 2005 and December 31, 2005, respectively, but net of approximately $26.0 million in loan sales in the current year, loans were up approximately $9.0 million and $1.5 million, respectively. The $26.0 million in loan sales is comprised of $19.3 million of loans sold in connection with the sale of the Ritchie County branches, with the balance comprised of certain underperforming loans that were marked to market in the fourth quarter of 2005 in anticipation of their sale in the first quarter of 2006.
 
Page 3

 
·  
Total deposits as of June 30, 2006 decreased by $87.0 million and $59.2 million as compared to June 30, 2005 and December 31, 2005, respectively. The decrease in deposits was due to continued runoff in money market deposit accounts, as customer preferences in a rising rate environment have turned to short- and intermediate-term certificates of deposit and non-bank money market funds, and the sale of approximately $37.8 million of deposits in connection with the sale of the Ritchie County branches. WesBanco experienced an increase of 1.3% in average certificates of deposit and 3.6% in average non-interest bearing demand deposit accounts compared to last year, with the free checking account increase a result of a concerted marketing campaign beginning in the fourth quarter of 2005 and a new campaign introduced in April 2006 that has resulted in the opening of over 26,000 new accounts over both periods.

·  
Total borrowings, including FHLB advances and other short-term borrowings, decreased from $812.2 million as of March 31, 2006, prior to the restructuring, to $577.5 million, a $234.7 million or 28.9% reduction. Borrowings as a percent of total assets dropped to 14.1% from March’s 18.7%. Borrowings are down some $279.5 million or 32.6% from year-end. Likewise, total investment securities have dropped since year-end from $992.6 million to $719.9 million at quarter-end, a 27.5% decrease, primarily due to the second quarter restructuring and sales from the available-for-sale portfolio, as well as continued runoff from maturities and pay-downs. In the current interest rate environment, many market participants, including WesBanco have decided that supporting larger balance sheets with wholesale leverage does not make fundamental economic sense, despite some associated give-up in short-term earnings from minimally profitable leverage strategies. A benefit of the downsizing has been increased tangible and other capital ratios, despite an ongoing share repurchase plan, as noted in the attached financial highlights, with tangible leverage increasing from 6.28% at year-end to 6.77% at June 30, 2006.

·  
For the quarter ended June 30, 2006, WesBanco repurchased a total of 158,416 shares and on a year to date basis for 2006 a total of 197,616 shares were repurchased. The average price paid on a year to date basis for 2006 was $29.92 per share. WesBanco has 940,545 shares remaining for repurchase under the current one million share repurchase plan approved by the Board of Directors in January 2006.

WesBanco is a multi-state bank holding company with total assets of approximately $4.1 billion, operating through 81 banking offices, one loan production office, and 128 ATMs in West Virginia, Ohio, and Pennsylvania. WesBanco’s 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. that also operates Mountaineer Securities, WesBanco’s discount brokerage operation.

Page 4

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 2005 Annual Report on Form 10-K, as well as the Form 10-Q for the prior quarter ended March 31, 2006, filed with the Securities and Exchange Commission (“SEC”), which are available at the SEC’s website www.sec.gov or at WesBanco’s website, www.wesbanco.com. Investors are cautioned that forward-looking statements, which are not historical fact, involve risks and uncertainties, including those detailed in WesBanco’s 2005 Annual Report on Form 10-K filed with the SEC 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 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 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 SEC, 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
                    
Page 5
(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
2006
 
2005
 
% Change
 
2006
 
2005
 
% Change
Interest income
$ 55,994
 
$ 56,534
 
(0.96%)
  
$ 112,441
 
$ 111,418
 
0.92%
Interest expense
25,130
 
22,666
 
10.87%
  
50,594
 
44,049
 
14.86%
    Net interest income
30,864
 
33,868
 
(8.87%)
  
61,847
 
67,369
 
(8.20%)
Provision for loan losses
2,263
 
1,919
 
17.93%
  
4,903
 
3,762
 
30.33%
    Net interest income after provision for
                     
        loan losses
28,601
 
31,949
 
(10.48%)
  
56,944
 
63,607
 
(10.48%)
Non-interest income
                      
    Trust fees
3,537
 
3,512
 
0.71%
  
7,595
 
7,226
 
5.11%
    Service charges on deposit accounts
4,179
 
2,723
 
53.47%
  
7,976
 
5,185
 
53.83%
    Net securities gains
92
 
1,068
 
(91.39%)
  
(7,850)
  
1,821
 
(531.08%)
    Gains on early extinguishment of debt
1,047
 
-
 
100.00%
  
1,047
 
-
 
100.00%
    Other income
3,535
 
2,637
 
34.05%
  
9,036
 
5,239
 
72.48%
        Total non-interest income
12,390
 
9,940
 
24.65%
  
17,804
 
19,471
 
(8.56%)
Non-interest expense
                      
    Salaries and employee benefits
13,315
 
14,528
 
(8.35%)
  
26,731
 
28,424
 
(5.96%)
    Net occupancy
1,866
 
1,751
 
6.57%
  
3,879
 
3,547
 
9.36%
    Equipment
1,993
 
2,190
 
(9.00%)
  
4,023
 
4,394
 
(8.44%)
    Core deposit intangibles
633
 
685
 
(7.59%)
  
1,266
 
1,348
 
(6.08%)
    Marketing expense
1,837
 
1,026
 
79.04%
  
2,911
 
1,929
 
50.91%
    Restructuring & merger-related expenses (1)
-
 
70
 
(100.00%)
  
540
 
563
 
(4.09%)
    Other operating
7,344
 
7,243
 
1.39%
  
14,450
 
14,417
 
0.23%
        Total non-interest expense
26,988
 
27,493
 
(1.84%)
  
53,800
 
54,622
 
(1.50%)
    Income before provision for income taxes
14,003
 
14,396
 
(2.73%)
  
20,948
 
28,456
 
(26.38%)
Provision for income taxes
2,742
 
3,138
 
(12.62%)
  
4,103
 
6,118
 
(32.94%)
    Net income
$ 11,261
 
$ 11,258
 
0.03%
  
$ 16,845
 
$ 22,338
 
(24.59%)
 
                      
Taxable equivalent net interest income
$ 33,046
 
$ 36,448
 
(9.33%)
  
$ 66,349
 
$ 72,473
 
(8.45%)
 
                      
Per common share data
                      
Net income per common share - basic
$ 0.52
 
$ 0.50
 
4.00%
  
$ 0.77
 
$ 0.98
 
(21.43%)
Net income per common share - diluted
$ 0.52
 
$ 0.50
 
4.00%
  
$ 0.77
 
$ 0.98
 
(21.43%)
Dividends declared
$ 0.265
 
$ 0.26
 
1.92%
  
$ 0.53
 
$ 0.52
 
1.92%
Book value (period end)
            
$ 19.13
 
$ 18.82
 
1.63%
Tangible book value (period end)
            
$ 12.41
 
$ 12.15
 
2.11%
Average shares outstanding - basic
21,893,943
 
22,587,213
 
(3.07%)
  
21,915,824
 
22,788,686
 
(3.83%)
Average shares outstanding - diluted
21,946,829
 
22,643,463
 
(3.08%)
  
21,970,952
 
22,840,483
 
(3.81%)
Period end shares outstanding
            
21,783,350
 
22,321,525
 
(2.41%)
 
                      
Selected ratios
                      
Return on average assets
1.09%
  
0.99%
  
10.16%
  
0.80%
  
0.99%
  
(19.18%)
Return on average equity
10.83%
  
10.66%
  
1.58%
  
8.16%
  
10.54%
  
(22.60%)
Yield on earning assets (2)
6.23%
  
5.71%
  
9.11%
  
6.12%
  
5.66%
  
8.13%
Cost of interest bearing liabilities
3.05%
  
2.44%
  
25.00%
  
2.99%
  
2.39%
  
25.10%
Net interest spread (2)
3.18%
  
3.27%
  
(2.75%)
  
3.13%
  
3.27%
  
(4.28%)
Net interest margin (2)
3.54%
  
3.52%
  
0.57%
  
3.47%
  
3.51%
  
(1.14%)
Efficiency (2)
59.40%
  
59.27%
  
0.22%
  
63.93%
  
59.41%
  
7.61%
Average loans to average deposits
97.82%
  
96.36%
  
1.52%
  
97.80%
  
96.40%
  
1.45%
Annualized net loan charge-offs/average loans
0.54%
  
0.24%
  
126.31%
  
0.36%
  
0.19%
  
88.92%
Effective income tax rate
19.58%
  
21.80%
  
6.30%
  
19.59%
  
21.50%
  
13.08%
 
                      
(1) Restructuring costs are associated with a reduction in WesBanco's workforce through layoffs. Merger-related expenses are
primarily related to the acquisitions of Winton Financial Corporation and Western Ohio Financial Corporation.
(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.
            
 Page 6
  
Consolidated Selected Financial Highlights
              
(unaudited, dollars in thousands)
        
% Change
      
% Change
  
Balance sheet (period end)
  
June 30,
June 30,
  
June 30, 2005 to
  
 
December 31,
June 30, 2006
  
Assets
        
2006
2005
  
June 30, 2006
    
2005
to Dec. 31, 2005
  
Cash and due from banks
  
$ 89,921
$ 93,045
 
(3.36)
%
  
$ 108,176
(16.88)
%
Due from banks - Interest bearing
 
1,434
2,370
 
(39.49)
    
2,432
(41.04)
  
Securities
  
719,945
1,137,124
 
(36.69)
    
992,564
(27.47)
  
Loans:
                    
    Loans held for sale
  
6,038
8,518
 
(29.11)
    
28,803
(79.04)
  
    Commercial and commercial real estate
  
1,552,758
1,522,303
 
2.00
   
1,535,503
1.12
 
    Residential real estate
 
913,670
948,271
 
(3.65)
    
929,823
(1.74)
  
    Consumer and home equity
  
443,872
454,277
 
(2.29)
    
446,751
(0.64)
  
        Total loans
  
2,916,338
2,933,369
 
(0.58)
    
2,940,880
(0.83)
  
    Allowance for loan losses
  
(30,592)
(32,348)
  
(5.43)
    
(30,957)
(1.18)
  
        Net loans
  
2,885,746
2,901,021
 
(0.53)
    
2,909,923
(0.83)
  
Premises and equipment, net
  
65,940
63,459
 
3.91
   
64,707
1.91
 
Goodwill
  
137,258
137,339
 
(0.06)
    
137,258
-
 
Core deposit intangible, net
  
9,133
11,720
 
(22.07)
    
10,400
(12.18)
  
Other assets
  
179,626
150,682
 
19.21
   
196,655
(8.66)
  
Total Assets
  
$ 4,089,003
$ 4,496,760
 
(9.07)
%
  
$ 4,422,115
(7.53)
%
                           
Liabilities and Shareholders' Equity
                    
Non-interest bearing demand deposits
  
$ 386,811
$ 373,210
 
3.64
%
  
$ 392,116
(1.35)
%
Interest bearing demand deposits
  
340,184
318,786
 
6.71
   
325,582
4.48
 
Money market accounts
 
376,825
517,516
 
(27.19)
    
444,071
(15.14)
  
Savings deposits
  
465,649
464,628
 
0.22
   
462,601
0.66
 
Certificates of deposit
  
1,399,695
1,381,986
 
1.28
   
1,403,954
(0.30)
  
        Total deposits
  
2,969,164
3,056,126
 
(2.85)
    
3,028,324
(1.95)
  
Federal Home Loan Bank borrowings
  
412,756
673,183
 
(38.69)
    
612,693
(32.63)
  
Other borrowings
  
164,786
226,417
 
(27.22)
    
244,301
(32.55)
  
Junior subordinated debt
  
87,638
87,638
 
-
   
87,638
-
 
Other liabilities
  
38,028
33,194
 
14.56
   
33,929
12.08
 
Shareholders' equity
  
416,631
420,202
 
(0.85)
    
415,230
0.34
 
Total Liabilities and Shareholders' Equity
  
$ 4,089,003
$ 4,496,760
 
(9.07)
%
  
$ 4,422,115
(7.53)
%
                           
 
Average balance sheet and
                        
net interest margin analysis
  
Three months ended June 30,
  
Six months ended June 30,
         
2006
 
2005
 
2006
 
2005
         
Average
Average
 
Average
Average
 
Average
Average
 
Average
Average
Assets
 
 
 
 
Volume
Rate
 
Volume
Rate
 
Volume
Rate
 
Volume
Rate
Due from banks - interest bearing
  
$ 2,738
1.61%
  
$ 4,631
1.91%
  
$ 2,274
1.34%
  
$ 5,678
1.49%
Loans, net of unearned income
  
2,925,875
6.45%
  
2,968,613
6.02%
  
2,926,697
6.39%
 
2,964,017
5.95%
Securities:
                    
 
 
Taxable
  
403,013
4.39%
  
686,753
3.96%
  
492,704
4.22%
  
703,277
3.96%
Tax-exempt
  
373,908
6.67%
  
433,806
6.80%
  
385,977
6.67%
  
422,316
6.91%
Total securities
  
776,921
5.48%
  
1,120,559
4.99%
  
878,681
5.29%
  
1,125,593
5.01%
Federal funds sold
  
7,253
4.76%
  
-
0.00%
  
3,646
4.72%
  
1,835
2.62%
Other earning assets (1)
  
31,890
5.35%
  
54,844
3.89%
  
37,176
4.69%
  
48,458
3.95%
Total earning assets
  
3,744,677
6.23%
  
4,148,647
5.71%
  
3,848,474
6.12%
  
4,145,581
5.66%
Other assets
  
396,758
   
402,949
   
396,938
   
405,061
 
Total Assets
  
$ 4,141,435
   
$ 4,551,596
   
$ 4,245,412
 
$ 
 4,550,642
 
                               
Liabilities and Shareholders' Equity   
                        
Interest bearing demand deposits   
  
$ 350,860
1.10%
  
$ 330,273
0.41%
  
$ 335,741
0.90%
  
$ 330,375
0.41%
Money market accounts    
  
389,506
2.16%
  
545,475
1.87%
  
407,347
2.12%
  
566,780
1.85%
Savings deposits   
  
465,994
1.27%
  
455,916
0.64%
  
465,652
1.19%
  
446,954
0.58%
Certificates of deposit   
  
1,400,929
3.82%
  
1,377,006
3.01%
  
1,405,270
3.71%
  
1,364,713
2.95%
Total interest bearing deposits   
  
2,607,289
2.75%
  
2,708,670
2.07%
  
2,614,010
2.65%
  
2,708,822
2.02%
Federal Home Loan Bank borrowings   
  
470,221
3.68%
  
695,179
3.36%
  
536,111
3.64%
  
707,395
3.35%
Other borrowings   
  
139,798
4.40%
  
229,916
2.75%
  
177,235
4.30%
  
225,730
2.48%
Junior subordinated debt   
  
87,638
6.41%
  
87,638
5.97%
  
87,638
6.34%
  
81,145
5.87%
Total interest bearing liabilities    
  
3,304,946
3.05%
  
3,721,403
2.44%
  
3,414,994
2.99%
 
3,723,092
2.39%
Non-interest bearing demand deposits   
  
383,779
   
372,201
   
378,449
   
365,945
 
Other liabilities   
  
35,601
   
34,492
   
35,584
   
34,335
 
Shareholders' equity   
  
417,109
   
423,500
   
416,385
   
427,270
 
Total Liabilities and   
                        
Shareholders' Equity   
  
$ 4,141,435
   
$ 4,551,596
   
$ 4,245,412
 
$ 
 4,550,642
 
                               
Taxable equivalent net interest spread   
    
3.18%
    
3.27%
    
3.13%
    
3.27%
Taxable equivalent net interest margin  
    
3.54%
    
3.52%
    
3.47%
    
3.51%
 
(1) Federal Reserve stock, Federal Home Loan Bank stock and equity securities that do not have readily determinable fair market values. 



 
WESBANCO, INC.
                  
Consolidated Selected Financial Highlights
                
Page 7
(unaudited, dollars in thousands, except per share amounts)
                   
 
Quarter Ended
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
Statement of income
2006
 
2006
 
2005
 
2005
 
2005
Interest income
$ 55,994
 
$ 56,447
 
$ 57,096
 
$ 56,231
 
$ 56,534
Interest expense
25,130
 
25,464
 
24,742
 
23,643
 
22,666
    Net interest income
30,864
 
30,983
 
32,354
 
32,588
 
33,868
Provision for loan losses
2,263
 
2,640
 
2,142
 
2,141
 
1,919
    Net interest income after provision for
                 
        loan losses
28,601
 
28,343
 
30,212
 
30,447
 
31,949
Non-interest income
                  
    Trust fees
3,537
 
4,058
 
3,538
 
3,541
 
3,512
    Service charges on deposit accounts
4,179
 
3,797
 
3,515
 
2,834
 
2,723
    Net securities gains
92
 
(7,942)
  
59
 
141
 
1,068
    Gains on early extinguishment of debt
1,047
 
-
 
-
 
-
 
-
    Other income
3,535
 
5,501
 
2,710
 
3,324
 
2,637
        Total non-interest income
12,390
 
5,414
 
9,822
 
9,840
 
9,940
Non-interest expense
                  
    Salaries and employee benefits
13,315
 
13,416
 
13,446
 
14,420
 
14,528
    Net occupancy
1,866
 
2,013
 
1,776
 
1,844
 
1,751
    Equipment
1,993
 
2,030
 
1,969
 
2,018
 
2,190
    Core deposit intangibles
633
 
633
 
654
 
665
 
685
    Marketing expense
1,837
 
1,073
 
1,935
 
671
 
1,026
    Restructuring & merger-related expenses (1)
-
 
540
 
-
 
967
 
70
    Other operating
7,344
 
7,107
 
6,855
 
7,078
 
7,243
        Total non-interest expense
26,988
 
26,812
 
26,635
 
27,663
 
27,493
    Income before income taxes
14,003
 
6,945
 
13,399
 
12,624
 
14,396
Provision for income taxes
2,742
 
1,361
 
2,850
 
2,754
 
3,138
    Net income
$ 11,261
 
$ 5,584
 
$ 10,549
 
$ 9,870
 
$ 11,258
 
                  
Taxable equivalent net interest income
$ 33,046
 
$ 33,303
 
$ 34,786
 
$ 35,111
 
$ 36,448
                   
Per common share data
                  
Net income per common share - basic
$ 0.52
 
$ 0.25
 
$ 0.48
 
$ 0.44
 
$ 0.50
Net income per common share - diluted
$ 0.52
 
$ 0.25
 
$ 0.48
 
$ 0.44
 
$ 0.50
Dividends declared
$ 0.265
 
$ 0.265
 
$ 0.26
 
$ 0.26
 
$ 0.26
Book value (period end)
$ 19.13
 
$ 18.98
 
$ 18.91
 
$ 18.74
 
$ 18.82
Tangible book value (period end)
$ 12.41
 
$ 12.28
 
$ 12.19
 
$ 12.08
 
$ 12.15
Average shares outstanding - basic
21,893,943
 
21,937,948
 
22,070,906
 
22,260,541
 
22,587,213
Average shares outstanding - diluted
21,946,829
 
21,998,750
 
22,127,684
 
22,320,674
 
22,643,463
Period end shares outstanding
21,783,350
 
21,925,266
 
21,955,359
 
22,156,096
 
22,321,525
Full time equivalent employees
1,176
 
1,165
 
1,200
 
1,254
 
1,311
 
                  
Selected ratios
                  
Return on average assets
1.09%
  
0.52%
  
0.95%
  
0.88%
  
0.99%
Return on average equity
10.83%
  
5.45%
  
10.09%
  
9.35%
  
10.66%
Yield on earning assets (2)
6.23%
  
6.01%
  
5.88%
  
5.78%
  
5.71%
Cost of interest bearing liabilities
3.05%
  
2.93%
  
2.74%
  
2.59%
  
2.44%
Net interest spread (2)
3.18%
  
3.08%
  
3.14%
  
3.19%
  
3.27%
Net interest margin (2)
3.54%
  
3.40%
  
3.45%
  
3.46%
  
3.52%
Efficiency (2)
59.40%
  
69.25%
  
59.71%
  
61.54%
  
59.27%
Average loans to average deposits
97.82%
  
97.78%
  
96.92%
  
95.80%
  
96.36%
Trust Assets, market value at period end
$ 2,797,321
 
$ 2,871,129
 
$ 2,599,463
 
$ 2,598,993
 
$ 2,557,916
 
                  
(1) Restructuring costs are associated with a reduction in WesBanco's workforce through layoffs. Merger-related expenses are
primarily related to the acquisitions of Winton Financial Corporation and Western Ohio Financial Corporation.
(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 8
 
(unaudited, dollars in thousands)
                  
       
Quarter Ended
   
 
 
June 30,
 
March 31,
 
Dec. 31,
 
Sept. 30,
 
June 30,
 
Asset quality data
 
2006
 
2006
 
2005
 
2005
 
2005
  
Non-performing assets:
                      
     Non-accrual loans
$ 13,361
 
$ 14,129
 
$ 9,920
 
$ 9,812
 
$ 10,941
 
     Renegotiated loans
-
 
-
 
-
 
-
 
-
 
         Total non-performing loans
  
13,361
 
14,129
 
9,920
 
9,812
 
10,941
 
     Other real estate and repossessed assets
3,263
 
2,692
 
1,868
 
1,929
 
2,525
 
         Total non-performing loans and assets
$ 16,624
 
$ 16,821
 
$ 11,788
 
$ 11,741
 
$ 13,466
 
Loans past due 90 days or more
  
$ 9,784
 
$ 6,528
 
$ 10,054
 
$ 8,411
 
$ 7,585
 
                           
Non-performing assets/total assets
  
0.41
%
0.39
%
0.27
%
0.27
%
0.30
%
Non-performing assets/total loans, other real
                   
    estate and repossessed assets
  
0.57
%
0.57
%
0.40
%
0.40
%
0.46
%
Non-performing loans/total loans
  
0.46
%
0.48
%
0.34
%
0.33
%
0.37
%
Non-performing loans and loans past due 90
                   
    days or more/total loans
0.79
%
0.70
%
0.68
%
0.62
%
0.63
%
Non-performing loans, loans past due 90 days and other
                    
    real estate owned/total loans and other real estate owned
0.89
%
0.79
%
0.74
%
0.69
%
0.72
%
                           
Allowance for loan losses
                      
Allowance for loan losses
  
$ 30,592
 
$ 32,291
 
$ 30,957
 
$ 32,497
 
$ 32,348
 
Provision for loan losses
  
2,263
 
2,640
 
2,142
 
2,141
 
1,919
 
Net loan charge-offs
  
3,962
 
1,306
 
3,682
 
1,993
 
1,795
 
Annualized net loan charge-offs /average loans
0.54
%
0.18
%
0.50
%
0.27
%
0.24
%
Allowance for loan losses/total loans
1.05
%
1.10
%
1.05
%
1.11
%
1.10
%
Allowance for loan losses/non-performing loans
2.29
x
2.29
x
3.12
x
3.31
x
2.96
x
Allowance for loan losses/non-performing loans
                   
     andpast due 90 days or more
1.32
x
1.56
x
1.55
x
1.78
x
1.75
x
                           
                           
Capital ratios
                    
Tier I leverage capital
  
9.06
%
8.56
%
8.46
%
8.38
%
8.17
%
Tier I risk-based capital
  
12.32
%
11.98
%
11.94
%
11.92
%
11.93
%
Total risk-based capital
  
13.37
%
13.06
%
12.97
%
13.01
%
13.01
%
Shareholders' equity to assets
  
10.07
%
9.55
%
9.42
%
9.43
%
9.34
%
Tangible equity to tangible assets (1)
6.77
%
6.38
%
6.28
%
6.31
%
6.24
%
                           
(1) Tangible equity is defined as shareholders' equity less goodwill and other intangible assets, and
tangible assets are defined as total assets less goodwill and other intangible assets. The calculation is based on quarterly averages.
 
WESBANCO, INC.
              
Reconciliation Table - Non-GAAP Financial Information
        
Page 9
(unaudited, dollars in thousands, except per share amounts)
            
               
Note: This press release contains financial information other than that provided by accounting principles generally accepted in the United States of America (“GAAP”). The Company’s management believes these Non-GAAP measurements, which exclude the effects of merger-related and restructuring expenses, are essential to a proper understanding of the operating results of the Company’s core business largely because they allow investors to see clearly the performance of the Company without the restructuring charges included in certain key financial ratios. These Non-GAAP measurements are not a substitute for operating results determined in accordance with GAAP nor do they necessarily conform to Non-GAAP performance measures that may be presented by other companies. These Non-GAAP measures should not be compared to Non-GAAP performance measures of other companies.
               
 
              
 
For the Three Months Ended
  
For the Six Months Ended
 
June 30,
  
June 30,
 
2006
  
2005
  
2006
  
2005
Net income
$ 11,261
 
$ 11,258
 
$ 16,845
 
$ 22,338
Add: restructuring & merger-related expenses, net of tax (1)
-
 
42
 
324
 
338
Add: other-than-temporary impairment losses, net of tax (1)
-
 
-
 
4,829
 
-
Subtract: gain on branch sale, net of tax (1)
(92)
  
-
 
(1,571)
  
-
Core operating earnings
$ 11,169
 
$ 11,300
 
$ 20,427
 
$ 22,676
               
               
Net income per common share (3)
$ 0.52
 
$ 0.50
 
$ 0.77
 
$ 0.98
Effects of restructuring & merger-related expenses, net of tax (1)
-
 
-
  
0.02
 
0.01
Effects of other-than-temporary impairment losses, net of tax (1)
-
 
-
 
0.22
 
-
Effects of gain on branch sale, net of tax (1)
(0.00)
  
-
 
(0.07)
  
-
Core operating earnings per common share (3)
$ 0.52
 
$ 0.50
 
$ 0.94
 
$ 0.99
 
              
Selected ratios
              
Return on average assets
1.09%
  
0.99%
  
0.80%
  
0.99%
Effects of restructuring & merger-related expenses, net of tax (1)
0.00%
  
0.00%
  
0.01%
  
0.01%
Effects of other-than-temporary impairment losses, net of tax (1)
0.00%
  
0.00%
  
0.11%
  
0.00%
Effects of gain on branch sale, net of tax (1)
(0.01%)
  
0.00%
  
(0.04%)
  
0.00%
Core operating return on average assets
1.08%
  
0.99%
  
0.88%
  
1.00%
 
              
 
              
Return on average equity
10.83%
  
10.66%
  
8.16%
  
10.54%
Effects of restructuring & merger-related expenses, net of tax (1)
0.00%
  
0.04%
  
0.08%
  
0.08%
Effects of other-than-temporary impairment losses, net of tax (1)
0.00%
  
0.00%
  
1.16%
  
0.00%
Effects of gain on branch sale, net of tax (1)
(0.09%)
  
0.00%
  
(0.38%)
  
0.00%
Core operating return on average equity
10.74%
  
10.70%
  
9.02%
  
10.62%
 
              
Efficiency ratio (2)
59.40%
  
59.27%
  
63.93%
  
59.41%
Effects of restructuring & merger-related expenses, net of tax (1)
0.00%
  
(0.15%)
  
(0.40%)
  
(0.61%)
Effects of other-than-temporary impairment losses
0.00%
  
0.00%
  
(6.05%)
  
0.00%
Effects of gain on branch sale
0.20%
  
0.00%
  
1.97%
  
0.00%
Core operating efficiency ratio
59.60%
  
59.12%
  
59.45%
  
58.80%
 
              
(1) The related income tax expense is calculated using a combined Federal and State income tax rate of 40%.
(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.
(3) The dilutive effect from stock options was immaterial and accordingly, basic and diluted earnings per share are the same.