<PAGE> 1
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1995
OR
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)
<TABLE>
<S> <C>
West Virginia 55-0571723
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
1 Bank Plaza, Wheeling, WV 26003
(Address of principal executive offices) (Zip Code)
</TABLE>
304-234-9000
(Registrant's telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or, for such shorter period
that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes X No
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date. Outstanding at
July 31, 1995, 8,442,610 shares.
1 of 18
<PAGE> 2
PART 1 - FINANCIAL INFORMATION
- ------------------------------
Consolidated Balance Sheets at June 30, 1995 (unaudited)
and December 31, 1994, Consolidated Statements of Income,
Consolidated Statements of Changes in Shareholders' Equity and
Consolidated Statements of Cash Flows for the six months ended
June 30, 1995 and 1994 (unaudited) are set forth on the following pages.
In the opinion of management of the Registrant, all adjustments,
consisting of normal recurring accruals, necessary for a fair
presentation of the financial information referred to above for such
periods, have been made. The results of operations for the six months
ended June 30, 1995 are not necessarily indicative of what results will
be for the entire year. For further information, refer to the Annual
Report to Shareholders which includes consolidated financial statements
and footnotes thereto and WesBanco, Inc.'s Annual Report on Form 10-K for
the year ended December 31, 1994.
Earnings per share was computed by dividing net income, less
preferred stock dividends and accretion, by the weighted average number
of common shares outstanding during the period. Preferred stock
dividends are cumulative and are payable quarterly at an annual rate of
$15.20 per share. Conversion of the preferred stock to common stock, in
accordance with the conversion requirements, would increase outstanding
common shares by approximately 113,443 shares. The fully dilutive effect
of preferred stock is less than 3%.
2
<PAGE>
<PAGE> 3
WESBANCO, INC.
CONSOLIDATED BALANCE SHEET
(dollars in thousands)
<TABLE>
<CAPTION>
June 30, December 31,
1995 1994
----------- ------------
(Unaudited)
<S> <C> <C>
ASSETS
Cash and due from banks $ 42,528 $ 47,643
Due from banks - interest bearing 297 297
Federal funds sold 12,500 17,370
Investment securities (Note 1) 450,943 476,878
Loans-net (Notes 2 and 3) 798,016 764,801*
Bank premises and equipment - net 22,737 21,874
Accrued interest receivable 10,668 11,347
Other assets 9,091 10,758*
---------- ----------
TOTAL ASSETS $1,346,780 $1,350,968
---------- ----------
LIABILITIES
Deposits:
Non-interest bearing demand $ 117,025 $ 130,739
Interest bearing demand 251,451 263,717
Savings deposits 285,841 296,961
Certificates of deposit 444,680 417,802
---------- ----------
Total deposits 1,098,997 1,109,219
---------- ----------
Federal funds purchased and repurchase
agreements 59,639 65,750
Short-term borrowings 7,339 4,444
Dividends payable 1,957 1,872
Accrued interest payable 6,022 5,360
Other liabilities 6,284 5,833
--------- ---------
TOTAL LIABILITIES 1,180,238 1,192,478
--------- ---------
Redeemable Preferred Stock (Series A,
8% Cumulative, $1.25 par value, 10,000
shares issued; 9,925 shares
outstanding) 1,876 1,860
SHAREHOLDERS' EQUITY
Preferred stock, no par value, 1,000,000
shares authorized; none outstanding --- ---
Common stock, $2.0833 par value;
25,000,000 shares authorized;
8,682,103 shares issued 18,087 18,087
Capital surplus 26,968 26,968
Market value adjustment on investments
available for sale - net of tax effect (342) (4,482)
Retained earnings 127,051 121,641
Less: Treasury stock at cost (214,639
and 172,145 shares, respectively) (5,797) (4,735)
------- -------
165,967 157,479
Deferred benefits for employees and
directors (1,301) (849)
------- -------
TOTAL SHAREHOLDERS' EQUITY 164,666 156,630
---------- ----------
TOTAL LIABILITIES, REDEEMABLE
PREFERRED STOCK AND SHAREHOLDERS'
EQUITY $1,346,780 $1,350,968
---------- ----------
</TABLE>
* Certain amounts in loans and other assets have been reclassified under
FAS No. 114 for comparative purposes.
The accompanying Notes to Consolidated Financial Statements are an integral
part of these financial statements.
3
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<PAGE> 4
WESBANCO, INC.
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
(in thousands, except share and per share amounts)
<TABLE>
<CAPTION>
For the three months For the six months
ended June 30, ended June 30,
--------- --------- ---------- ----------
1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
INTEREST INCOME:
Interest and fees on loans $ 17,675 $ 15,558 $ 34,379 $ 30,796
Interest on investment securities 6,308 7,365 12,918 14,433
Other interest income 419 147 717 398
---------- ---------- ---------- ----------
Total interest income 24,402 23,070 48,014 45,627
---------- ---------- ---------- ----------
INTEREST EXPENSE:
Interest on deposits 9,643 8,284 18,780 16,535
Interest on other borrowings 726 457 1,472 890
---------- ---------- ---------- ----------
Total interest expense 10,369 8,741 20,252 17,425
---------- ---------- ---------- ----------
NET INTEREST INCOME 14,033 14,329 27,762 28,202
---------- ---------- ---------- ----------
Provision for possible loan losses 467 429 844 1,135
---------- ---------- ---------- ----------
NET INTEREST INCOME AFTER PROVISION
FOR POSSIBLE LOAN LOSSES 13,566 13,900 26,918 27,067
---------- ---------- ---------- ----------
OTHER INCOME:
Trust fees 1,173 1,024 2,468 2,281
Service charges and other income 1,460 1,342 2,919 2,807
Net securities transaction gains 295 132 401 275
--------- --------- --------- --------
Total other income 2,928 2,498 5,788 5,363
--------- --------- --------- --------
OTHER EXPENSES:
Salaries, wages and fringe benefits 5,504 5,415 10,788 10,591
Premises and equipment - net 1,113 1,141 2,286 2,315
Other operating 3,233 3,225 6,367 6,390
--------- -------- --------- --------
Total other expenses 9,850 9,781 19,441 19,296
--------- -------- --------- --------
Income before provision for income taxes 6,644 6,617 13,265 13,134
Provision for income taxes (Note 4) 1,887 1,934 3,850 3,815
--------- -------- --------- --------
NET INCOME $ 4,757 $ 4,683 $ 9,415 $ 9,319
---------- ---------- ---------- ----------
Preferred stock dividends and discount
accretion $ 45 $ 46 $ 91 $ 92
---------- ---------- ---------- ----------
Net income available to common
shareholders $ 4,712 $ 4,637 $ 9,324 $ 9,227
---------- ---------- ---------- ----------
Earnings per share of common stock $ .56 $ .54 $ 1.10 $ 1.07
---------- ---------- ---------- ----------
Average outstanding shares of common
stock 8,496,464 8,632,280 8,502,438 8,637,279
---------- ---------- ---------- ----------
Dividends declared per share of common
stock $ .23 $ .21 $ .46 $ .42
---------- ---------- ---------- ---------
</TABLE>
The accompanying Notes to Consolidated Financial Statements are an integral part
of these financial statements.
4
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<PAGE> 5
WESBANCO, INC.
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(Unaudited)
(dollars in thousands)
<TABLE>
<CAPTION>
For the six months ended
June 30,
-------------------------
1995 1994
---- ----
<S> <C> <C>
Total Shareholders' Equity
Balance, beginning of period $156,630 $157,516
-------- --------
Net Income 9,415 9,319
Cash dividends:
Common (3,914) (3,631)
Preferred (75) (76)
Accretion of preferred stock (16) (16)
Net purchase of treasury shares (1,062) (2,528)
Change in market value adjustment on
investments available for sale-net
of tax effect 4,140 (1,144)
Change in deferred benefits for employees
and directors (452) ---
------- -------
Net change in Shareholders' Equity 8,036 1,924
------- -------
Total Shareholders' Equity
Balance, end of period $164,666 $159,440
-------- --------
</TABLE>
The accompanying Notes to Consolidated Financial Statements are an integral
part of these financial statements.
5
<PAGE>
<PAGE> 6
WESBANCO, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited) (dollars in thousands)
<TABLE>
<CAPTION>
For the six months ended
June 30,
--------------------------
1995 1994
------- -------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 9,415 $ 9,319
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation 1,006 1,021
Provision for possible loan losses 844 1,135
Net amortization and accretion 1,829 2,788
Gain on sales of investment securities (401) (275)
Deferred income taxes (65) 155
Other - net (122) ---
Increase or decrease in assets and
liabilities:
Interest receivable 679 282
Other assets (1,128) (1,084)*
Interest payable 662 (440)
Other liabilities 16 425
------- -------
Net cash provided by operating activities 12,735 13,326
------- -------
Investing Activities:
Investment securities held to maturity:
Payments for purchases (40,126) (80,933)
Proceeds from maturities and calls 36,987 26,079
Investment securities available for sale:
Payments for purchases (25,835) (44,349)
Proceeds from sales 32,465 46,679
Proceeds from maturities, calls
and prepayments 27,792 23,831
Net increase in loans (34,039) (876)*
Purchases of premises and equipment-net (1,688) (786)
------- -------
Net cash used by investing activities (4,444) (30,355)
------- -------
Financing activities:
Net increase (decrease)
in certificates of deposit 26,878 (1,375)
Net decrease in demand and (37,100) (6,250)
savings accounts
Increase (decrease) in federal funds
purchased and repurchase agreements (6,111) 10,689
Increase (decrease) in short-term
borrowings 2,895 (2,169)
Dividends paid (3,905) (3,213)
Other (933) (2,543)
------- ------
Net cash used by financing activities (18,276) (4,861)
------- -------
Net decrease in cash and cash equivalents (9,985) (21,890)
Cash and cash equivalents at beginning of year 65,013 76,655
-------- --------
Cash and cash equivalents at end of period $ 55,028 $ 54,765
-------- --------
</TABLE>
For the six months ended June 30, 1995 and 1994, WesBanco paid $19,592 and
$17,865 in interest on deposits and other borrowings and $4,030 and $3,920 for
income taxes, respectively.
* Certain amounts in loans and other assets have been reclassified under
FAS No. 114 for comparative purposes.
The accompanying Notes to Consolidated Financial Statements are an integral
part of these financial statements.
6
<PAGE> 7
WESBANCO, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in thousands)
NOTE 1 - INVESTMENT SECURITIES:
- -------------------------------
<TABLE>
<CAPTION>
June 30, December 31,
1995 1994
----------- -----------
(Unaudited)
<S> <C> <C>
Investments Held to Maturity (at cost):
U.S. Treasury and Federal
Agency Securities $151,269 $150,197
Obligations of States and
political subdivisions 123,510 122,716
Other debt securities 1,358 1,260
------- -------
276,137 274,173
------- -------
Investments Available for Sale (at market):
U.S. Treasuries and Federal
Agency Securities 164,454 193,114
U.S. Corporate Securities 523 915
Mortgage-backed securities 7,560 7,788
Other debt and equity securities 2,269 888
------- -------
174,806 202,705
-------- --------
Total $450,943 $476,878
-------- --------
</TABLE>
NOTE 2 - LOANS:
- ---------------
<TABLE>
<CAPTION>
June 30, December 31,
1995 1994*
----------- ------------
(Unaudited)
<S> <C> <C>
Loans:
Commercial $169,543 $161,521
Real Estate-Construction 18,206 24,734
Real Estate-Mortgage 376,231 358,540
Installment 257,727 241,441
-------- --------
821,707 786,236
-------- --------
Deduct:
Unearned income (11,145) (9,118)
Reserve for possible loan losses (Note 3) (12,546) (12,317)
------- -------
(23,691) (21,435)
-------- --------
Total $798,016 $764,801
-------- --------
</TABLE>
* Loans have been reclassified under FAS No. 114 for comparative
purposes.
7
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NOTE 3 - RESERVE FOR POSSIBLE LOAN LOSSES: (Unaudited)
- ------------------------------------------------------
<TABLE>
<CAPTION>
For the six months
ended June 30,
---------------------
1995 1994
------- -------
<S> <C> <C>
Balance at beginning of period $12,317 $11,851
Recoveries credited to reserve 437 255
Provision for possible loan losses 844 1,135
Losses charged to reserve (1,052) (1,158)
------- -------
Balance at end of period $12,546 $12,083
------- -------
</TABLE>
As of January 1, 1995, the Corporation adopted Financial Accounting
Standard "FAS" No. 114 (as amended by FAS No. 118), "Accounting by
Creditors for Impairment of a Loan." Under the new standard, the 1995
portion of the reserve for possible loan losses related to loans that are
identified for evaluation in accordance with FAS No. 114 is based on
discounted cash flows using the loan's initial effective interest rate
or the fair value of the collateral for certain collateral dependent
loans.
The reserve for possible loan losses is maintained at a level
believed adequate by management to absorb estimated probable loan losses.
This evaluation is inherently subjective as it requires material
estimates including the amounts and timing of future cash flows expected
to be received on impaired loans which may be susceptible to significant
change.
At June 30, 1995, the recorded investment in loans that are
considered to be impaired under FAS No. 114 was $10,538 (of which $9,271
were on a nonaccrual basis). Included in this amount is $3,412 of
impaired loans for which the related reserve for possible loan losses is
$222 and $7,126 of impaired loans that, as a result of writedowns, do not
8
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require an allowance for credit losses. The average balance of impaired
loans during the six month period ended June 30, 1995 was approximately
$10,760. For the period ended June 30, 1995, the interest income
recognized on impaired loans does not have a material effect on the
results of operations.
Foreclosed assets are comprised of property acquired through a
foreclosure proceeding, acceptance of a deed-in-lieu of foreclosure, and
loans classified as in-substance foreclosure. In accordance with FAS
No. 114, a loan is classified as an in-substance foreclosure when the
Corporation has taken possession of the collateral regardless of whether
formal foreclosure proceedings take place. Loans previously classified
in other assets as in-substance foreclosure of approximately $3,666 have been
reclassified from other assets to the loan category for December 31, 1994.
The reclassification did not significantly impact the Corporation's
financial condition.
NOTE 4 - INCOME TAXES: (Unaudited)
- ----------------------------------
A reconciliation of the average federal statutory tax rate to the
reported effective tax rate attributable to income from operations
follows:
<TABLE>
<CAPTION>
For the six months
ended June 30,
---------------------------
1995 1994
------------ ------------
<S> <C> <C> <C> <C>
Federal statutory tax rate $4,642 35% $4,597 35%
Tax-exempt interest income from
securities of states and
political subdivisions (1,135) (9) (1,186) (9)
State income tax - net of
federal tax effect 380 3 352 3
All other - net (37) 0 52 0
------------ ------------
Effective tax rate $3,850 29% $3,815 29%
------------ ------------
</TABLE>
9
<PAGE>
<PAGE> 10
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
- -------------------------------------------------------------------------
OF OPERATIONS (Dollars in thousands)
- -------------
Financial Condition
- -------------------
Total assets of WesBanco as of June 30, 1995 were $1,346,780 as
compared to $1,350,968 as of December 31, 1994.
Investment securities declined by $25,935 between June 30, 1995 and
December 31, 1994. The decline was caused by maturities, calls,
prepayments and sales aggregating $97,244. Investment purchases for the
same period were $65,961. The net proceeds from a decrease in
investments were used to fund loan growth and to provide for deposit
withdrawals.
The market value adjustments in the investment portfolio under the
1994 adoption of FAS No. 115 resulted in unrealized net losses before tax
on available for sale securities of $556 and $7,342 as of June 30, 1995
and December 31, 1994, respectively. These unrealized net losses
represent temporary market value fluctuations which may change depending
upon general changes in market rates and length of time to respective
maturity dates.
Net loans increased $33,215 or 4.3% between June 30, 1995 and
December 31, 1994. A significant portion of the loan growth can be
attributed to increases in installment loans which, due to offering
attractive rates on automobile loans, increased approximately $16,286.
Real estate loans increased approximately $11,163 resulting from loans
made for commercial real estate projects.
Total deposits declined $10,222 between June 30, 1995 and
December 31, 1994. The lack of growth in the deposit area is due to the
general economic conditions within the Upper Ohio Valley and competition
from nonbank products. Additionally, the composition of deposits changed
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significantly over this six month period as consumers shifted to higher
yielding certificates of deposit from non-term deposit products.
Certificates of deposit increased $26,878 or 6.4% between June 30, 1995
and December 31, 1994. This shift in deposits reflects the consumer's
sensitivity to a changing interest rate environment and demand for higher
yielding alternatives.
Comparison of the six months ended June 30, 1995 and 1994
- ---------------------------------------------------------
Earnings Summary
- ----------------
Net income for the six months ended June 30, 1995 was $9,415, a 1%
increase over the same period in 1994. Earnings per share of common
stock for the six months ended June 30, 1995 and 1994 were $1.10 and
$1.07 respectively. Net income increased slightly due to a decrease in
the provision for possible loan losses, the ability to control overhead
costs and an increase in trust fees for the six months ended June 30,
1995 as compared to the same period during 1994.
Return on average assets (ROA) was 1.41% and 1.38% for the six
months ended June 30, 1995 and 1994, respectively. Return on average
equity (ROE) was 11.72% compared to 11.76% for the six months ended
June 30, 1995 and 1994, respectively.
Net interest income for the six months ended June 30, 1995 decreased
$440 or 1.6% over the same period for 1994. The decrease can be
attributed to a decline in average earning assets of $5,710 or .5% and
interest bearing liabilities of $16,540 or 1.6% over the comparative
period. Net tax equivalent interest income expressed as a percentage of
average earning assets remained stable at 4.7% for the six months ended
June 30, 1995 and 1994. Current period loan and deposit interest rates
are generally above levels noted in the previous comparative period.
During the first six months of 1995, most banks' primary lending rate was
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at 9.0% and the rate for the first six months of 1994 ranged from 6.0%
to 7.25%. The continued repricing of interest earning assets caused the
average yield on WesBanco's interest earning assets to increase to 7.7%
during the first six months of 1995 from 7.2% during the first six months
of 1994. Increases in rates paid on deposit products caused average
rates on interest bearing liabilities to increase to 3.9% during the
first six months of 1995 from 3.3% during the first six months of 1994.
Interest Income
- ---------------
Total interest income increased $2,387 or 5% between the six month
periods ended June 30, 1995 and 1994. Interest and fees on loans
increased $3,583 or 12% primarily due to both an increase in the average
rates earned and the average balance of loans outstanding. Average rates
earned on loans increased by approximately .5% and average balances of
loans increased by approximately $43,926. Interest on investments in
U.S. Treasury and Agencies decreased $1,525 or 14%. The decline was due
to a decrease in the average outstanding balance of approximately
$49,411, along with a decrease in the average yield of .1% between the
six months ending June 30, 1995 and 1994. Interest earned on investments
in states and political subdivisions decreased $122 or 4%. Decreases in
the average balance of this type of investment approximated $4,697 while
the average yield remained unchanged. Other interest income, comprised
primarily of interest on federal funds sold, increased $319 or 80%. The
increase was due to average rates earned which increased to 6.0% during
the first six months of 1995 from 3.5% during the same period of 1994,
and an increase in the average balance of approximately $1,010.
Interest Expense
- ----------------
Total interest expense increased $2,827 or 16% between the six month
period ended June 30, 1995 and 1994. During the period, average rates
12
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paid on interest bearing deposits increased to 3.8% from 3.3% but was
offset by a decrease in average interest-bearing deposit balances of
approximately $15,929. The decrease in average deposits was due to the
lack of economic growth in the Upper Ohio Valley and competition from
nonbank products. The increase in average deposit rates was due to
rising market rates in the second half of 1994 coupled with a shift from
non-term demand and savings products to higher yielding certificates of
deposit. Interest expense on interest-bearing demand deposits increased
$35 or 1% primarily due to the increase in the average rates paid of .2%
partially offset by a decrease in average balances. The interest rates
paid on NOW and Money Market accounts approximated 2.5% during the first
half of 1995 and 1994. Interest expense on traditional savings accounts
decreased $239 or 5% due to a decrease in average balances of
approximately $31,028 offset by an increase in the average rates paid by
.1%. Certificates of deposit interest expense increased $2,450 or 28%
due to an increase in the average balances of $35,181 combined with an
increase in the average rates paid of .8%. The increase in the average
balance of certificates of deposit was due to the shift from non-term
deposits to higher yielding deposits. Interest on other borrowings,
which primarily includes repurchase agreements, increased $582 or 65%
primarily due to increases in average rates paid on repurchase agreements
of 2% and average balances outstanding of approximately $2,069. Rates
paid on repurchase agreements closely follow interest rates in the
federal funds market.
Provision for Possible Loan Losses
- ----------------------------------
The provision for possible loan losses decreased due to the decline
in net charge-offs and due to management's evaluation of the credit risk
in the current loan portfolio and analysis of underlying collateral
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value. Net charge-offs decreased to $615 as of June 30, 1995 from $903
as of June 30, 1994. The reserve for possible loan losses was 1.55% of
total loans as of June 30, 1995 and 1.59% as of December 31, 1994.
Nonaccrual loans, renegotiated loans, in-substance foreclosures and other
real estate owned totaled $10,080 or 1.2% of loans as of June 30, 1995
as compared to $8,795 or 1.2% as of December 31, 1994, an increase of
$1,285. The increase was primarly due to a commercial real estate loan
which was placed on nonaccrual status during the second quarter of 1995.
Loans past due 90 days or more have decreased to $1,867 or .2% of total
loans as of June 30, 1995 from $2,526 or .3% of total loans as of
December 31, 1994.
Lending by WesBanco banks is guided by written lending policies
which allow for various types of lending. Normal lending practices do
not include the acquisition of high yield non-investment grade loans or
"highly leveraged transactions" ("HLT") from out of the primary market
areas.
Other Income
- ------------
Other income increased $425 or 8%. Trust fee income increased $187
primarily due to increases in estate settlement fees during the first six
months of 1995. The market value of trust assets approximates $1,151,000 as
of June 30, 1995. Service charges and other income increased $112
between the six months ended June 30, 1995 and 1994 primarily due to the
standardization of service charges among subsidiary banks. Net
securities transaction gains increased $126 between the six months ended
June 30, 1995 and 1994 primarily due to a decision to divest of an equity
position in the current year which no longer has a strategic value to the
Corporation. The divestiture resulted in security gains of approximately
$279 during the six months ended June 30, 1995.
14
<PAGE> 15
Other Expenses
- --------------
Total other expenses increased $145 or 1%. Salaries expense and
employee benefits increased $197 primarily due to the implementation of
postretirement benefits for WesBanco Fairmont (formerly First Fidelity
Bancorp) employees. Other operating expenses decreased $23 or .3% due to
improved operational efficiencies resulting from affiliate bank
consolidations during 1995 and 1994.
Comparison of the three months ended June 30, 1995 and 1994
- -----------------------------------------------------------
Total interest income increased $1,332 between the three month
periods ending June 30, 1995 and 1994. Interest and fees on loans
increased $2,117 due to an increase in average rates coupled with an
increase in the average volume of loans outstanding. Interest on
investments in U.S. Treasury and Agencies decreased $1,074. Average
balances outstanding decreased while average rates earned remained
stable. Interest on investments in states and political subdivisions
decreased $70 primarily due to a decrease in outstanding average
balances. Other interest income, primarily interest on federal funds
sold, increased $272 due to both an increase in the average balance
outstanding and an increase in average rates.
Total interest expense increased $1,628 between the three month
periods ended June 30, 1995 and 1994. Interest paid on deposits
increased $1,359 due to an increase in average rates paid on deposits
offset by a decrease in the average interest-bearing deposit balances
outstanding of approximately $15,215. Interest on other borrowings
increased $269 for the three months ended June 30, 1995 and 1994,
primarily due to an increase in the average volume of repurchase
agreements approximating $9,814.
Total other income increased by $430 primarily due to increases in
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<PAGE> 16
both trust fees of $149 and net securities transaction gains of $163.
Service charges and other income increased by $118.
Total other expenses increased by $69. Salaries and employee
benefits increased $89 due primarily to an increase in postretirement
benefits. Premises, equipment and other operating expenses remained at
levels consistent with the second quarter of 1994. The stability in
overhead expenses can be attributed to improved operational efficiencies
through internal consolidations of affiliate banks.
Other Matters
- -------------
The Corporation modified a Directors' deferred compensation plan
("the Plan") in the first quarter of 1995. Any Director, including
affiliate directors, may elect, at specified times, to participate in the
Plan. Each Director who elects to participate in the Plan will have an
account established in which his or her director fees will be credited
as they become payable. Directors may elect to designate that all or
part of such account be deemed to be invested in WesBanco common stock
or in a subsidiary bank interest bearing account. As of June 30, 1995,
WesBanco common stock held for this plan approximated $324,000 and was
classified as a decrease in Shareholder' Equity.
On January 1, 1995, WesBanco implemented a self-insurance medical
plan available to all employees at their option. Premiums are paid by
both employees and WesBanco into a trust account being administered by
a subsidiary bank. As approved claims become due, payment is made from
the trust. The monthly contribution is determined by an independent
actuary, which includes reinsurance to limit liability in providing
medical coverage through the self-insurance plan. Expenses for the self-
insurance plan approximate contributions paid into the trust account for
the six months ending June 30, 1995.
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PART II - OTHER INFORMATION
- ---------------------------
Item 1-5 - Not Applicable
- -------------------------
Item 6 (a) - Exhibits
- ---------------------
(15) Letter re unaudited interim financial information. page 18.
(27) Financial Data Schedule required by Article 9 of Regulation S-X.
Item 6 (b) - Reports on Form 8-K
- --------------------------------
There were no reports filed on Form 8-K for the three months ended
June 30, 1995.
SIGNATURE
- ---------
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
WESBANCO, INC.
--------------
Date: August 11, 1995 /s/ Edward M. George
--------------- --------------------
Edward M. George
President and Chief Executive Officer
Date: August 11, 1995 /s/ Paul M. Limbert
--------------- --------------------
Paul M. Limbert
Executive Vice President and
Chief Financial Officer
17
<PAGE> 1
EXHIBIT 15
PRICE WATERHOUSE LLP
Report of Independent Accountants
---------------------------------
August 7, 1995
To the Board of Directors and
Shareholders of WesBanco, Inc.
We have reviewed the consolidated balance sheet and the related consolidated
statements of income, changes in shareholders'equity and cash flows of
WesBanco, Inc., and its subsidiaries (the Company) as of June 30, 1995 and
1994, and for the 3-month and 6-month periods then ended (the consolidated
interim financial information) as presented in the Company's Quarterly Report
on Form 10-Q for the quarter ended June 30, 1995. This consolidated interim
financial information is the responsibility of the Company's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical
procedures to financial data and making inquiries of persons responsible
for financial and accounting matters. It is substantially less in scope
than an audit conducted in accordance with generally accepted auditing
standards, the objective of which is the expression of an opinion
regarding the financial statements taken as a whole. Accordingly, we do
not express such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the consolidated interim financial information for it to
be in conformity with generally accepted accounting principles.
We previously audited, in accordance with generally accepted auditing
standards, the consolidated balance sheet as of December 31, 1994, and
the related consolidated statements of income, changes in shareholders'
equity and cash flows for the year then ended (not presented herein), and
in our report dated January 19, 1995, we expressed our unqualified
opinion on those consolidated financial statements. In our opinion, the
information set forth in the accompanying consolidated balance sheet as
of December 31, 1994, is fairly stated in all material respects in
relation to the consolidated balance sheet from which it has been
derived.
/s/ Price Waterhouse LLP
600 Grant Street
Pittsburgh, PA 15219
18
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