<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 March 31, 1997
---------------------------------------------
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)
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)
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 April 30,
1997, 10,391,453 shares.
1 of 17
<PAGE> 2
PART 1 - FINANCIAL INFORMATION
- -------------------------------
Consolidated Balance Sheets at March 31, 1997 and December 31, 1996,
and Consolidated Statements of Income, Consolidated Statements of Changes in
Shareholders' Equity and Consolidated Statements of Cash Flows for the three
months ended March 31, 1997 and 1996 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 three months ended March 31, 1997 are not
necessarily indicative of what results may be attained for the entire year.
All previously presented financial information has been restated to include
the Bank of Weirton. For further information, refer to the 1996 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, 1996.
<PAGE> 3
WESBANCO, INC.
CONSOLIDATED BALANCE SHEET
- ---------------------------------------------------------------------------
(Unaudited, in thousands, except for shares)
March 31, December 31,
1997 1996
------------ -------------
ASSETS
Cash and due from banks $ 60,146 $ 58,828
Due from banks - interest bearing 197 197
Federal funds sold 38,215 10,970
Securities:
Available for sale, carried at market value 273,670 276,201
Held to maturity (market value of $231,813
and $250,132, respectively) 232,605 249,108
--------- ---------
Total securities 506,275 525,309
--------- ---------
Loans held for sale 2,351 983
Loans (net of unearned income of $3,235
and $4,160, respectively) 1,022,409 1,026,370
Allowance for loan losses (15,548) (15,528)
--------- ---------
Net loans 1,006,861 1,010,842
--------- ---------
Bank premises and equipment - net 32,380 32,670
Accrued interest receivable 12,497 11,748
Other assets 26,357 26,224
---------- ----------
Total Assets $1,685,279 $1,677,771
========== ==========
LIABILITIES
Deposits:
Non-interest bearing demand $ 158,154 $ 159,176
Interest bearing demand 302,853 284,143
Savings deposits 311,998 323,673
Certificates of deposit 582,104 575,828
---------- ----------
Total deposits 1,355,109 1,342,820
---------- ----------
Federal funds purchased and repurchase
agreements 75,825 81,089
Other short-term borrowings 11,593 11,682
Accrued interest payable 5,894 5,826
Other liabilities 11,971 8,822
---------- ----------
Total Liabilities 1,460,392 1,450,239
---------- ----------
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; 10,538,993
shares issued 21,956 21,956
Capital surplus 36,953 36,949
Retained earnings 172,575 170,116
Treasury stock at cost (110,685
and 17,139 shares, respectively) (3,650) (544)
Market value adjustment on securities
available for sale - net of tax effect (2,103) (90)
Deferred benefits for employees and directors (844) (855)
---------- ----------
Total Shareholders' Equity 224,887 227,532
---------- ----------
Total Liabilities and Shareholders' Equity $1,685,279 $1,677,771
========== ==========
The accompanying Notes to Consolidated Financial Statements are an integral
part of these financial statements.
<PAGE> 4
WESBANCO, INC.
CONSOLIDATED STATEMENT OF INCOME
- -----------------------------------------------------------------------------
(Unaudited, in thousands, except share and per share amounts)
For the three months ended
March 31,
--------------------------
1997 1996
INTEREST INCOME ------------ -----------
Interest and fees on loans $22,087 $19,524
Interest on securities 7,644 7,379
Interest on short-term investments 184 573
--------- ---------
Total interest income 29,915 27,476
--------- ---------
INTEREST EXPENSE
Interest on deposits 12,028 10,909
Interest on other borrowings 967 901
--------- ---------
Total interest expense 12,995 11,810
--------- ---------
Net interest income 16,920 15,666
Provision for loan losses 1,100 869
--------- ---------
Net interest income after provision for
loan losses 15,820 14,797
--------- ---------
OTHER INCOME
Trust fees 1,672 1,471
Service charges and other income 1,593 1,505
Net securities gains 5 86
--------- ---------
Total other income 3,270 3,062
--------- ---------
OTHER EXPENSES
Salaries, wages and employee benefits 6,202 5,542
Premises and equipment - net 1,794 1,498
Other operating 3,634 3,080
--------- ---------
Total other expenses 11,630 10,120
--------- ---------
Income before provision for income taxes 7,460 7,739
Provision for income taxes 1,955 2,366
--------- ---------
Net Income $ 5,505 $ 5,373
========= =========
Earnings per share of common stock $0.52 $0.53
========= =========
Average shares outstanding 10,495,293 10,170,550
========== ==========
Dividends per share $0.29 $0.26
========== ==========
The accompanying Notes to Consolidated Financial Statements are an integral
part of these financial statements.
<PAGE> 5
WESBANCO, INC.
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
- -----------------------------------------------------------------------------
(Unaudited, in thousands)
For the three months ended
March 31,
--------------------------
1997 1996
------------ -----------
Total Shareholders' Equity
Balance, beginning of period $ 227,532 $ 206,996
----------- -----------
Net Income 5,505 5,373
Cash dividends on common stock (3,046) (2,403)
Net treasury shares purchased (3,102) (681)
Change in market value adjustment on securities
available for sale-net of tax effect (2,013) (1,574)
Change in deferred benefits for employees
and directors 11 (21)
----------- -----------
Net change in Shareholders' Equity (2,645) 694
----------- -----------
Total Shareholders' Equity
Balance, end of period $ 224,887 $ 207,690
=========== ===========
The accompanying Notes to Consolidated Financial Statements are an integral
part of these financial statements.
<PAGE> 6
WESBANCO, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
- -----------------------------------------------------------------------------
Increase (Decrease) in Cash and Cash Equivalents (unaudited, in thousands)
For the three months ended
March 31,
--------------------------
1997 1996
------------ ------------
Cash flows from operating activities:
Net Income $ 5,505 $ 5,373
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 1,438 1,555
Provision for loan losses 1,100 869
Gains on sales of securities - net (5) (86)
Deferred income taxes (1) (125)
Other - net (80) 4
Net change in assets and liabilities:
Interest receivable (749) (1,289)
Other assets 1,060 (895)
Interest payable 68 56
Other liabilities 3,018 3,288
Loans held for sale (1,368) -
--------- ---------
Net cash provided by operating activities 9,986 8,750
--------- ---------
Cash flows from investing activities:
Securities held to maturity:
Payments for purchases (11,085) (14,999)
Proceeds from maturities and calls 29,945 38,456
Securities available for sale:
Payments for purchases (21,911) (58,846)
Proceeds from sales - 15,234
Proceeds from maturities and calls 18,367 8,211
Net (increase) decrease in loans 2,881 (6,966)
Purchases of premises and equipment-net (600) (878)
--------- ---------
Net cash provided by (used in) investing activities 17,597 (19,788)
--------- ---------
Cash flows from financing activities:
Net increase in deposits 12,289 4,686
Decrease in federal funds
purchased and repurchase agreements (5,264) (2,619)
Increase (decrease) in short-term borrowings (89) 5,560
Dividends paid (2,854) (2,326)
Purchases of treasury shares - net (3,102) (681)
--------- ---------
Net cash provided by financing activities 980 4,620
--------- ---------
Net increase (decrease) in cash and cash equivalents 28,563 (6,418)
Cash and cash equivalents at beginning of period 69,798 91,393
--------- ---------
Cash and cash equivalents at end of period $ 98,361 $ 84,975
========= =========
For the three months ended March 31, 1997 and 1996, WesBanco paid $11,992 and
$11,854 in interest on deposits and other borrowings. No income taxes were
paid for the three months ended March 31, 1997 and 1996.
The accompanying Notes to Consolidated Financial Statements are an integral
part of these financial statements.
<PAGE> 7
WESBANCO, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
- ------------------------------------------------------------------
Note 1 - Basis of Presentation
- ------------------------------
The accompanying unaudited consolidated financial statements
have been prepared in accordance with generally accepted accounting
principles for interim financial information and with the
instructions to Form 10-Q and Article 10 of Regulation S-X.
Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles
for complete financial statements.
The consolidated financial statements include the accounts
of WesBanco, Inc. and its wholly-owned subsidiaries. All
significant intercompany transactions have been eliminated in
consolidation. All previously presented financial information
has been restated to include the Bank of Weirton.
Earnings per common share are based on the average number of
shares of common stock outstanding during the periods presented.
Financial Accounting Standards Board Statement No. 128,
"Accounting for Earnings Per Share" ("Statement No. 128") is
effective in 1997 and provides specific computations,
presentation and disclosure requirements for earnings per share.
The statement's objective is to simplify the computation of
earnings per share and to make the U. S. standard for computing
earnings per share more compatible with the standards of other
countries and with that of the International Accounting Standards
Committee. Early adoption is not permitted and Statement No. 128
will not have a material effect on the Corporation's reported
earnings per share.
Note 2 - Mergers and Acquisitions
- ---------------------------------
On December 20, 1996, WesBanco announced the signing of a
Definitive Agreement and Plan of Merger providing for the merger
of Shawnee Bank, Inc., located in Dunbar and South Charleston,
West Virginia with WesBanco South Hills, a wholly-owned
subsidiary of WesBanco. The acquisition, which is based upon a
fixed exchange ratio of 10.094 shares of WesBanco common stock
for each share of Shawnee common stock, will be accounted for as
a purchase transaction, with an approximate value of $10,344,960,
based on a March 31, 1997 market value of $32.00 per share. As
of March 31, 1997, Shawnee reported total assets of $38.0
million, total shareholders' equity of $5.5 million and net
income of $133,000, or $4.15 per share. To complete the
acquisition, WesBanco anticipates issuing up to 323,280 shares of
common stock to Shawnee shareholders. WesBanco's Board approved a
plan, beginning March 3, 1997, to purchase shares of WesBanco
common stock. As of March 31, 1997,
<PAGE> 8
WesBanco has purchased 82,000 shares under the plan. The transaction,
which is subject to approval by the shareholders of Shawnee, is expected
to be completed on June 30, 1997.
Note 3 - New Accounting Standard Adopted
- ----------------------------------------
The Corporation adopted Financial Accounting Standards Board
Statement No. 125, "Accounting for Transfers and Servicing of
Financial Assets and Extinguishments of Liabilities," ("Statement
No. 125") on January 1, 1997. The new standard provides
accounting and reporting standards for transfers and servicing of
financial assets and extinguishments of liabilities. The
adoption of Statement No. 125 did not have a material impact on
the Corporation's financial position or results of operations.
<PAGE> 9
WESBANCO, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
- ------------------------------------------------------------------
(Unaudited, dollars in thousands except per share amounts)
The following discussion and analysis presents in further
detail the financial condition and results of operations of
WesBanco, Inc. and its subsidiaries. This discussion and
analysis should be read in conjunction with the consolidated
financial statements and notes presented in this report.
Financial Condition
-------------------
Total assets of WesBanco as of March 31, 1997 were
$1,685,279 as compared to $1,677,771 as of December 31, 1996, an
increase of .4%. Securities decreased $19,034 or 3.6% as
maturities were reinvested in federal funds sold. During the
period, federal funds sold increased $27,245. Total loans, net
of unearned income, declined $3,961 or .4%, while deposits
increased $12,289 or .9%. The decrease in total loans occurred
primarily in the consumer loan portfolio due primarily to
seasonal declines in the volume of auto loans made during the
first quarter. The increase in deposit growth occurred in
certificates of deposit and interest bearing demand reflecting
the competitive pricing of the Good Neighbor Banking and Prime
Rate Money Market products.
Securities
- ----------
The following table shows the composition of WesBanco's
securities portfolio:
March 31, December 31,
1997 1996
---- ----
Securities Available for Sale (at market):
- ------------------------------------------
U.S. Treasury and Federal Agency securities $164,735 $161,817
Obligations of states and political subdivisions 15,629 14,120
Corporate securities --- 5,005
Mortgage-backed securities 91,739 93,750
Other debt and equity securities 1,567 1,509
-------- --------
Total available for sale $273,670 $276,201
-------- --------
Securities Held to Maturity (at cost):
- --------------------------------------
U.S. Treasury and Federal Agency securities $ 77,774 $ 99,457
Obligations of states and political subdivisions 152,943 147,643
Other debt and equity securities 1,888 2,008
-------- --------
Total held to maturity (market value of
$231,813 and $250,132, respectively 232,605 249,108
-------- --------
Total securities $506,275 $525,309
======== ========
During the three months ended March 31, 1997, maturities, calls,
prepayments and sales aggregated $48,312, while purchases of securities
totaled $32,996.
<PAGE> 10
As interest rates rose late in the first quarter 1997, the market value
adjustment, before tax effect, in the available for sale securities portfolio
reflected an increase in unrealized net losses to $3,455 as of March 31, 1997
from $144 as of December 31, 1996. These adjustments represent temporary
market value fluctuations caused by general changes in market rates and the
length of time to respective maturity dates. If these securities are held
until their respective maturity date, no market value adjustment would be
realized.
Loans
- -----
The following table shows the composition of WesBanco's loan portfolio
at March 31, 1997 and December 31, 1996:
March 31, 1997 December 31, 1996
------------------ -----------------
Amount Percent Amount Percent
------ ------- ------ -------
Commercial $ 183,789 17.9% $ 177,136 17.0%
Real Estate - Construction 23,116 2.3 21,556 2.0
Real Estate - Mortgage 511,798 49.9 510,778 50.0
Consumer 306,941 29.9 321,060 31.0
---------- ------ ---------- ------
Total Loans 1,025,644 100.0% 1,030,530 100.0%
Less:
Unearned income (3,235) (4,160)
Allowance for loan losses (15,548) (15,528)
---------- ----------
Net Loans $1,006,861 $1,010,842
========== ==========
The decrease in total loans reflects seasonal declines in consumer loans,
primarily due to a slowdown in new auto sales, coupled with the competitive
environment and lack of economic growth in the Upper Ohio Valley. During the
remainder of 1997, the Corporation expects to generate moderate consumer loan
growth by offering attractive rates on its loan products. In addition,
WesBanco anticipates an increase in mortgage loan originations through its
affiliate, WesBanco Mortgage Company. The mortgage company, with offices
throughout West Virginia, originates and sells mortgage loans to the secondary
market.
WesBanco monitors the overall quality of its loan portfolio through
various methods. Underwriting policies and guidelines have been established
for all types of credits and management continually monitors the portfolio for
adverse trends in delinquent and nonperforming loans.
<PAGE> 11
Loans are considered impaired when it is determined that WesBanco may not
be able to collect all principal and interest due, according to the contractual
terms of the loans. Impaired loans, including all nonperforming loans, are as
follows:
March 31, December 31,
1997 1996
---- ----
Nonaccrual $ 5,575 $ 4,664
Renegotiated 3,592 2,150
Other classified loans:
Doubtful --- 94
Substandard 4,007 3,377
------- -------
Total impaired loans $13,174 $10,285
======= =======
The average balance of impaired loans during the periods ended March 31,
1997 and December 31, 1996, were approximately $13,418 and $11,541
respectively. The increase was primarily attributable to the lack of
economic growth in the Upper Ohio Valley.
Specific allowances are allocated for impaired loans based on the present
value of expected future cash flows, or the fair value of the collateral for
loans that are collateral dependent. Related allowances for loan losses on
impaired loans were $1,929 and $2,120 as of March 31, 1997 and December 31,
1996, respectively.
Other real estate totaled $4,033 as of March 31, 1997, compared to $3,555
as of December 31, 1996. Loans past due 90 days or more were $4,074 or .4% of
total loans as of March 31, 1997, as compared to $4,105 or .4% of total loans
as of December 31, 1996.
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 outside the primary market.
Allowance for Loan Losses
- -------------------------
Activity in the allowance for loan losses is summarized as follows:
For the three months
ended March 31,
--------------------
1997 1996
---- ----
Balance, at beginning of period $15,528 $13,439
Charge-offs (1,345) (546)
Recoveries 265 121
------- -------
Net charge-offs (1,080) (425)
Provision for loan losses 1,100 869
------- -------
Balance, at end of period $15,548 $13,883
======= =======
<PAGE> 12
The increase in the allowance for loan losses was due primarily to the
acquisition of Vandalia National Corporation. The increase in net charge-offs
during the first quarter 1997 was attributed primarily to the writedown of a
commercial loan. The allowance for loan losses as a percentage of total loans
was 1.5% as of March 31, 1997 and 1996. Amounts allocated to the allowance
for loan losses are based upon management's evaluation of the loan portfolio.
Deposits
- --------
Total deposits increased $12,289 between March 31, 1997 and December 31,
1996, primarily due to growth in interest bearing demand and certificates of
deposit. Customer preference for higher yielding products coupled with
competitive pricing through the Good Neighbor Banking program have resulted
in steady growth in certificates of deposit. Contributing to the growth in
interest bearing demand was the Prime Rate Money Market account, introduced
on October 1, 1996. This deposit product, competitively priced at 60% of
WesBanco's prime rate, has generated both new deposit growth and a shift in
deposit balances from savings and other interest bearing demand products.
Liquidity and Capital Resources
- -------------------------------
WesBanco manages its liquidity position to meet its funding needs,
including deposit outflows and loan principal disbursements and to meet its
asset and liability management objectives.
In addition to funds provided from operations, WesBanco's primary sources
of funds are deposits, principal repayments on loans and matured or called
securities. Scheduled loan repayments and maturing securities are relatively
predictable sources of funds. However, deposit flows and prepayments on loans
are significantly influenced by changes in market interest rates, economic
conditions, and competition. WesBanco strives to manage the pricing of its
deposits to maintain a balance of cash flows commensurate with loan
commitments and other funding needs.
WesBanco is subject to risk-based capital guidelines that measure capital
relative to risk-adjusted assets and off-balance sheet financial instruments.
The Corporation's Tier I, total risk-based capital and leverage ratios are well
above the required minimum levels of 4%, 8% and 4%, respectively. At
March 31, 1997 and December 31, 1996, all of WesBanco's affiliate banks
exceeded the minimum regulatory levels. Capital adequacy ratios are
summarized as follows:
March 31, December 31,
1997 1996
---- ----
Primary capital 14.1% 14.4%
Tier I capital 19.7 19.8
Total risk-based capital 21.0 21.0
Leverage 13.3 13.7
<PAGE> 13
Earnings Summary
----------------
Comparison of the three months ended March 31, 1997 and 1996
------------------------------------------------------------
Net income for the three months ended March 31, 1997 was $5,505, a 2.5%
increase over the same period in 1996. Earnings per share of common stock
for the three months ended March 31, 1997 and 1996 were $.52 and $.53,
respectively. Net income increased primarily due to an increase in both net
interest income and trust fee income for the three months ended March 31, 1997
compared to the same period in 1996. Two purchase acquisitions, Universal
Mortgage Company and Vandalia National Corporation ("Vandalia") were completed
subsequent to the first quarter 1996. The impact of these acquisitions
increased certain income and expense classifications as further explained in
the Earnings Summary.
Return on average assets was 1.3% for the three months ended March 31,
1997 and 1.4% for the three months ended March 31, 1996. Return on average
equity was 9.7% compared to 10.4% for the three months ended March 31, 1997
and 1996, respectively.
Net Interest Income
- -------------------
Net interest income before the provision for loan losses, for the three
months ended March 31, 1997 increased $1,254 or 8% over the same period for
1996. The increase was primarily the result of growth in both average earning
assets of $91,603 and interest bearing liabilities of $74,748, a portion of
which was due to the acquisition of Vandalia. The growth in average earning
assets was comprised primarily of a 14% increase in average total loans with
Vandalia contributing approximately 36% of the increase. The growth in average
interest bearing liabilities was primarily the result of a 6.1% increase in
interest bearing deposits, of which Vandalia contributed approximately 65% of
the increase.
During a period of level market rates, the net tax equivalent yield on
average earning assets improved to 4.7% from 4.6% for the three months ended
March 31, 1997 and 1996. The increase in the net yield was primarily due to
a shift in the composition of assets from investment securities to higher-
yielding loans.
Interest Income
- ---------------
Total interest income increased $2,439 or 8.9% between the three month
periods ended March 31, 1997 and 1996. Interest and fees on loans increased
$2,563 or 13.1% primarily due to an increase in the average balance of
loans outstanding. Average rates earned on loans decreased approximately .1%
while average loan balances increased by approximately $127,841 or 14%.
Interest on taxable securities increased $10 or .2%. The increase was due to
an increase in the average rate of approximately .63%,
<PAGE> 14
partially offset by a decrease in the average outstanding balance of $36,072
between the three month periods ending March 31, 1997 and 1996. The decrease
in taxable investments was the result of funding excess loan demand with
scheduled maturities. Interest earned on nontaxable securities increased by
$255 or 13.8%. Increases in the average balance of municipal securities
approximated $26,817 while the average yield declined .3%. WesBanco
emphasized purchases in municipal securities, which represented yield and
tax advantages over other securities during the comparative period.
Interest Expense
- ----------------
Total interest expense increased $1,185 or 10.0% between the three month
periods ended March 31, 1997 and 1996. Interest expense on deposits increased
$1,119 or 10.3% during the comparative period as the average rate on interest
bearing deposits increased .2% and average interest-bearing deposit balances
increased by approximately $68,000 or 6.1%. Interest expense on interest
bearing demand deposits increased $339 or 19.9% primarily due to an increase
in the average rate of .3% coupled with an increase in the average balance of
$15,000 or 5.4%. An increase of $1,139 or 16.5% in the interest expense on
certificates of deposit was the result of an average balance increase of
$80,354. The increase in average volume and rate for both interest bearing
demand and certificates of deposit was primarily the result of the
competitively priced Prime Rate Money Market product and the Good Neighbor
Banking bonuses offered on various certificates of deposit products. Affected
primarily by a shift in balances from savings into money markets and
certificates of deposit, interest on savings accounts decreased $358 or 15.5%.
Average savings balances declined $27,350 and the average rate decreased .2%.
Interest on other borrowings, which consists primarily of repurchase
agreements, increased $66 or 7.3% due to an increase in average balances
outstanding of $6,742. Rates paid on repurchase agreements closely follow
the direction of interest rates in the federal funds market.
Other Income
- ------------
Other income increased $208 or 6.8%. Trust fee income increased $201
primarily due to increases in the market value of trust assets and new trust
business. The market value of trust assets approximated $1,598,576 as of
March 31, 1997, an increase of $188,569 or 13.4% over March 31, 1996. Service
charges and other income increased $88 or 5.8% between the three month periods
ended March 31, 1997 and 1996.
<PAGE> 15
Other Expenses
- --------------
Total other expenses increased $1,510 or 14.9%. Approximately $675 or 45%
of the increase was associated with the purchase acquisitions which occurred
subsequent to the first quarter of 1996. Salaries and employee benefits
increased $660 or 11.9% during the comparative period, of which approximately
$432 was due to the purchase acquisitions. The remaining portion of the
increase resulted from an increase in health insurance costs, partially
offset by a reduction in pension costs. The reduction in pension costs
was caused by market value appreciation of pension plan assets. Premises
and equipment expense increased $296 or 19.8%. While the purchase acquisitions
contributed to the increase in this expense category, the majority of the
increase was due to depreciation expense and service agreements associated
with Corporate initiatives in technology during 1996, including the
installation of a microcomputer-based wide area network and a new mainframe
software system. Other operating expenses increased $554 or 18%, of which
approximately $290 of the increase was associated with the purchase
acquisitions, including the related goodwill amortization. The remainder of
the increase was primarily the result of both an increase in FDIC insurance
premiums and consulting expenses associated with enhancing loan and deposit
fee income.
Income Taxes
- ------------
A reconciliation of the average federal statutory tax rate to the
reported effective tax rate attributable to income from operations follows:
For the three months
ended March 31,
---------------------
1997 1996
---- ----
Federal statutory tax rate 35% 35%
Tax-exempt interest income from
securities of states and political
subdivisions (10) (8)
State income tax - net of federal
tax effect 3 3
Alternative minimum tax credit
carryforward recognized (3) --
All other - net 1 1
----- -----
Effective tax rate 26% 31%
===== =====
As of March 31, 1997, the Corporation had credits for prior years'
minimum taxes of approximately $720 available for future periods to reduce
federal income taxes payable.
<PAGE> 16
Other Matters
- -------------
The Corporation has approximately 58% of its assets located in the Upper
Ohio Valley, an area experiencing an extended strike between the United Steel
Workers Union and Wheeling-Pittsburgh Steel Corporation. Through the current
date, this strike has not significantly impacted WesBanco's results of
operations. Since WesBanco is unable to determine when the strike may be
settled, we cannot estimate the impact on the local economy, if the strike
continues and ultimately the long-term effects resulting therefrom.
Part II - OTHER INFORMATION
- ---------------------------
Item 1-5 - Not Applicable
- -------------------------
Item 6(a) - Exhibits
- --------------------
(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
March 31, 1997.
<PAGE> 17
SIGNATURE
- ---------
Pursuant to the requirement 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: May 14, 1997 /s/ Edward M. George
--------------------- ---------------------------
Edward M. George
President and Chief Executive Officer
Date: May 14, 1997 /s/ Paul M. Limbert
--------------------- ---------------------------
Paul M. Limbert
Executive Vice President-Credit
Administration and
Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1000
<S> <C> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1997
<CASH> 60,146
<INT-BEARING-DEPOSITS> 197
<FED-FUNDS-SOLD> 38,215
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 273,670
<INVESTMENTS-CARRYING> 232,605
<INVESTMENTS-MARKET> 231,813
<LOANS> 1,022,409
<ALLOWANCE> 15,548
<TOTAL-ASSETS> 1,685,279
<DEPOSITS> 1,355,109
<SHORT-TERM> 87,418
<LIABILITIES-OTHER> 17,452
<LONG-TERM> 413
0
0
<COMMON> 21,956
<OTHER-SE> 202,931
<TOTAL-LIABILITIES-AND-EQUITY> 1,685,279
<INTEREST-LOAN> 22,087
<INTEREST-INVEST> 7,644
<INTEREST-OTHER> 184
<INTEREST-TOTAL> 29,915
<INTEREST-DEPOSIT> 12,028
<INTEREST-EXPENSE> 12,995
<INTEREST-INCOME-NET> 16,920
<LOAN-LOSSES> 1,100
<SECURITIES-GAINS> 5
<EXPENSE-OTHER> 11,630
<INCOME-PRETAX> 7,460
<INCOME-PRE-EXTRAORDINARY> 7,460
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5,505
<EPS-PRIMARY> .52
<EPS-DILUTED> .52
<YIELD-ACTUAL> 0
<LOANS-NON> 0
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 0
<CHARGE-OFFS> 0
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 0
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
