(Mark One)
|
||
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the quarterly period ended June 30, 2009
|
||
¨
|
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.
|
||
TABLE OF CONTENTS
|
||
Item No.
|
ITEM
|
Page No.
|
PART I - FINANCIAL INFORMATION
|
||
1
|
Financial Statements
|
|
Consolidated Balance Sheets at June 30, 2009 (unaudited) and December 31, 2008
|
3
|
|
Consolidated Statements of Income for the three and six months ended June 30, 2009 and 2008 (unaudited)
|
4
|
|
Consolidated Statements of Changes in Shareholders' Equity for the six months ended June 30, 2009 and 2008 (unaudited)
|
5
|
|
Consolidated Statements of Cash Flows for the six months ended June 30, 2009 and 2008 (unaudited)
|
6
|
|
Notes to Consolidated Financial Statements
|
7
|
|
2
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
19
|
3
|
Quantitative and Qualitative Disclosures About Market Risk
|
33
|
4
|
Controls and Procedures
|
35
|
PART II – OTHER INFORMATION
|
||
1
|
Legal Proceedings
|
36
|
2
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
36
|
4
|
Submission of Matters to a Vote of Security Holders
|
36
|
6
|
Exhibits
|
37
|
Signatures
|
38
|
WESBANCO, INC. CONSOLIDATED BALANCE SHEETS
|
||
June 30,
|
December 31,
|
|
(unaudited, dollars in thousands, except per share amounts)
|
2009
|
2008
|
(unaudited)
|
||
ASSETS
|
||
Cash and due from banks, including interest bearing amounts of
$12,235
and $65,145, respectively
|
$ 91,897
|
$ 141,170
|
Securities:
|
||
Available-for-sale, at fair value
|
1,455,845
|
934,138
|
Held-to-maturity (fair values of
$931
and $1,214, respectively)
|
1,450
|
1,450
|
Other short-term investments, at fair value
|
50,039
|
-
|
Total securities
|
1,507,334
|
935,588
|
Loans held for sale
|
9,223
|
3,874
|
Portfolio loans:
|
||
Commercial
|
472,915
|
510,902
|
Commercial real estate
|
1,766,904
|
1,699,023
|
Residential real estate
|
772,606
|
856,999
|
Home equity
|
230,727
|
217,436
|
Consumer
|
298,302
|
319,949
|
Total portfolio loans, net of unearned income
|
3,541,454
|
3,604,309
|
Allowance for loan losses
|
(58,572)
|
(49,803)
|
Net portfolio loans
|
3,482,882
|
3,554,506
|
Premises and equipment, net
|
92,531
|
93,693
|
Accrued interest receivable
|
21,796
|
19,966
|
Goodwill and other intangible assets, net
|
289,893
|
267,883
|
Bank-owned life insurance
|
102,973
|
101,229
|
Other assets
|
138,412
|
104,132
|
Total Assets
|
$ 5,736,941
|
$ 5,222,041
|
LIABILITIES
|
||
Deposits:
|
||
Non-interest bearing demand
|
$ 514,427
|
$ 486,752
|
Interest bearing demand
|
458,148
|
429,414
|
Money market
|
661,705
|
479,256
|
Savings deposits
|
484,236
|
423,830
|
Certificates of deposit
|
1,982,007
|
1,684,664
|
Total deposits
|
4,100,523
|
3,503,916
|
Federal Home Loan Bank borrowings
|
580,544
|
596,890
|
Other short-term borrowings
|
227,800
|
297,805
|
Junior subordinated debt owed to unconsolidated subsidiary trusts
|
111,153
|
111,110
|
Total borrowings
|
919,497
|
1,005,805
|
Accrued interest payable
|
13,148
|
10,492
|
Other liabilities
|
50,053
|
42,457
|
Total Liabilities
|
5,083,221
|
4,562,670
|
SHAREHOLDERS' EQUITY
|
||
Fixed Rate Cumulative Perpetual Preferred Stock, Series A, no par value; 1,000,000 shares
|
||
authorized; 75,000 shares issued and outstanding in 2009 and 2008, respectively
|
72,560
|
72,332
|
Common stock, $2.0833 par value; 50,000,000 shares authorized;
26,633,848
shares issued;
|
||
26,567,653
shares and 26,560,889 shares outstanding in 2009 and 2008, respectively
|
55,487
|
55,487
|
Capital surplus
|
193,196
|
193,221
|
Retained earnings
|
338,610
|
344,403
|
Treasury stock (
66,195
and 72,959 shares - at cost for 2009 and 2008, respectively)
|
(1,498)
|
(1,661)
|
Accumulated other comprehensive income
|
(3,379)
|
(3,182)
|
Deferred benefits for directors
|
(1,256)
|
(1,229)
|
Total Shareholders' Equity
|
653,720
|
659,371
|
Total Liabilities and Shareholders' Equity
|
$ 5,736,941
|
$ 5,222,041
|
|
See Notes to Consolidated Financial Statements.
|
WESBANCO, INC. CONSOLIDATED STATEMENTS OF INCOME
|
|||||||
For the Three Months Ended
|
For the Six Months Ended
|
||||||
June 30,
|
June 30,
|
||||||
(unaudited, dollars in thousands, except per share amounts)
|
2009
|
2008
|
2009
|
2008
|
|||
INTEREST AND DIVIDEND INCOME
|
|||||||
Loans, including fees
|
$ 51,482
|
$ 59,436
|
$ 103,541
|
$ 122,760
|
|||
Interest and dividends on securities:
|
|||||||
Taxable
|
10,791
|
7,107
|
18,309
|
14,319
|
|||
Tax-exempt
|
3,698
|
3,525
|
7,212
|
7,324
|
|||
Total interest and dividends on securities
|
14,489
|
10,632
|
25,521
|
21,643
|
|||
Other interest income
|
108
|
520
|
218
|
966
|
|||
Total interest and dividend income
|
66,079
|
70,588
|
129,280
|
145,369
|
|||
INTEREST EXPENSE
|
|||||||
Interest bearing demand deposits
|
727
|
1,062
|
1,377
|
3,176
|
|||
Money market deposits
|
1,848
|
2,154
|
3,094
|
4,532
|
|||
Savings deposits
|
644
|
741
|
1,178
|
1,731
|
|||
Certificates of deposit
|
14,755
|
17,473
|
28,159
|
38,950
|
|||
Total interest expense on deposits
|
17,974
|
21,430
|
33,808
|
48,389
|
|||
Federal Home Loan Bank borrowings
|
5,614
|
4,665
|
11,246
|
9,209
|
|||
Other short-term borrowings
|
1,770
|
2,087
|
3,838
|
4,754
|
|||
Junior subordinated debt owed to unconsolidated subsidiary trusts
|
1,470
|
1,747
|
3,010
|
3,614
|
|||
Total interest expense
|
26,828
|
29,929
|
51,902
|
|
65,966
|
||
NET INTEREST INCOME
|
39,251
|
40,659
|
77,378
|
79,403
|
|||
Provision for credit losses
|
10,269
|
5,723
|
19,819
|
11,148
|
|||
Net interest income after provision for credit losses
|
28,982
|
34,936
|
57,559
|
68,255
|
|||
NON-INTEREST INCOME
|
|
|
|
||||
Trust fees
|
3,288
|
3,939
|
6,641
|
8,063
|
|||
Service charges on deposits
|
6,076
|
6,020
|
11,294
|
11,623
|
|||
Bank-owned life insurance
|
897
|
902
|
1,788
|
1,762
|
|||
Net securities gains
|
2,462
|
400
|
2,604
|
906
|
|||
Net gains on sales of mortgage loans
|
297
|
408
|
785
|
464
|
|||
Other income
|
3,289
|
3,122
|
5,634
|
7,068
|
|||
Total non-interest income
|
16,309
|
14,791
|
28,746
|
29,886
|
|||
NON-INTEREST EXPENSE
|
|||||||
Salaries and wages
|
13,998
|
13,933
|
27,165
|
27,871
|
|||
Employee benefits
|
5,061
|
4,290
|
9,768
|
8,918
|
|||
Net occupancy
|
2,361
|
2,435
|
5,105
|
5,523
|
|||
Equipment
|
2,687
|
2,862
|
5,229
|
5,446
|
|||
Marketing
|
1,720
|
1,211
|
2,476
|
2,380
|
|||
FDIC Insurance
|
4,322
|
152
|
5,576
|
264
|
|||
Amortization of intangible assets
|
812
|
908
|
1,509
|
1,922
|
|||
Restructuring and merger-related expenses
|
192
|
1,656
|
621
|
2,705
|
|||
Other operating expenses
|
8,392
|
8,623
|
16,909
|
17,701
|
|||
Total non-interest expense
|
39,545
|
36,070
|
74,358
|
72,730
|
|||
Income before provision for income taxes
|
5,746
|
13,657
|
11,947
|
25,411
|
|||
Provision for income taxes
|
2
|
2,373
|
753
|
4,624
|
|||
NET INCOME
|
$ 5,744
|
$ 11,284
|
$ 11,194
|
$ 20,787
|
|||
Preferred dividends
|
1,057
|
-
|
2,112
|
-
|
|||
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS
|
$ 4,687
|
$ 11,284
|
$ 9,082
|
$ 20,787
|
|||
EARNINGS PER COMMON SHARE
|
|||||||
Basic
|
$ 0.18
|
$ 0.42
|
$ 0.34
|
$ 0.78
|
|||
Diluted
|
$ 0.18
|
$ 0.42
|
$ 0.34
|
|
$ 0.78
|
||
AVERAGE SHARES OUTSTANDING
|
|
||||||
Basic
|
26,567,653
|
26,547,498
|
26,564,589
|
26,547,286
|
|||
Diluted
|
26,568,752
|
26,553,724
|
26,566,516
|
26,556,832
|
|||
DIVIDENDS DECLARED PER COMMON SHARE
|
$ 0.28
|
$ 0.28
|
$ 0.56
|
$ 0.56
|
WESBANCO, INC. CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
|
||||||||||
For the Six Months Ended June 30, 2009 and 2008
|
||||||||||
|
Accumulated
|
|||||||||
Other
|
Deferred
|
|||||||||
(unaudited, dollars in thousands,
|
Preferred Stock
|
Common Stock
|
Capital
|
Retained
|
Treasury
|
Comprehensive
|
Benefits for
|
|||
except per share amounts)
|
Shares
|
Amount
|
Shares
|
Amount
|
Surplus
|
Earnings
|
Stock
|
Income (Loss)
|
Directors
|
Total
|
January 1, 2009
|
75,000
|
$ 72,332
|
26,560,889
|
$ 55,487
|
$ 193,221
|
$ 344,403
|
$ (1,661)
|
$ (3,182)
|
$ (1,229)
|
$ 659,371
|
Net income
|
11,194
|
11,194
|
||||||||
Other comprehensive income (loss)
|
(197)
|
(197)
|
||||||||
Total comprehensive income
|
10,997
|
|||||||||
Preferred dividends and amortization of discount
|
228
|
(2,112)
|
(1,884)
|
|||||||
Common dividends
|
||||||||||
declared (0.56 per share)
|
(14,875)
|
(14,875)
|
||||||||
Treasury shares sold
|
6,764
|
(52)
|
163
|
111
|
||||||
Deferred benefits for directors- net
|
27
|
(27)
|
-
|
|||||||
June 30, 2009
|
75,000
|
$ 72,560
|
26,567,653
|
$ 55,487
|
$ 193,196
|
$ 338,610
|
$ (1,498)
|
$ (3,379)
|
$ (1,256)
|
$653,720
|
January 1, 2008
|
-
|
$ -
|
26,547,073
|
$ 55,487
|
$ 190,222
|
$ 336,317
|
$ (1,983)
|
$ 1,450
|
$ (1,174)
|
$ 580,319
|
Net income
|
20,787
|
20,787
|
||||||||
Other comprehensive income (loss)
|
(2,856)
|
(2,856)
|
||||||||
Total comprehensive income
|
17,931
|
|||||||||
Common dividends
|
||||||||||
declared ($0.56 per share)
|
(14,865)
|
(14,865)
|
||||||||
Treasury shares sold
|
624
|
(3)
|
14
|
11
|
||||||
Stock option expense
|
76
|
76
|
||||||||
Deferred benefits for directors – net
|
26
|
(26)
|
-
|
|||||||
June 30, 2008
|
-
|
$ -
|
26,547,697
|
$ 55,487
|
$ 190,321
|
$ 342,239
|
$ (1,969)
|
$ (1,406)
|
$ (1,200)
|
$ 583,472
|
WESBANCO, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|||
|
For the Six Months Ended
|
||
June 30,
|
|||
(unaudited, in thousands)
|
2009
|
2008
|
|
OPERATING ACTIVITIES:
|
|||
Net income
|
$ 11,194
|
$ 20,787
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|||
Depreciation
|
3,905
|
3,738
|
|
Net amortization (accretion)
|
1,779
|
(363)
|
|
Provision for loan losses
|
19,950
|
11,148
|
|
Net securities gains
|
(2,604)
|
(906)
|
|
Net gains on sales of mortgage loans
|
(785)
|
(463)
|
|
Increase in deferred income taxes
|
(4,833)
|
(847)
|
|
Increase in cash surrender value of bank-owned life insurance
|
(1,744)
|
(1,795)
|
|
Loans originated for sale
|
(88,309)
|
(62,232)
|
|
Proceeds from the sale of loans originated for sale
|
80,470
|
60,517
|
|
Net change in: other assets and accrued interest receivable
|
(30,104)
|
9,150
|
|
Net change in: other liabilities and accrued interest payable
|
6,652
|
(10,794)
|
|
Other – net
|
1,003
|
1,340
|
|
Net cash (used in) provided by operating activities
|
(3,426)
|
29,280
|
|
INVESTING ACTIVITIES:
|
|||
Securities available-for-sale and other short-term investments:
|
|||
Proceeds from sales
|
283,491
|
28,970
|
|
Proceeds from maturities, prepayments and calls
|
193,204
|
130,086
|
|
Purchases of securities
|
(1,049,317)
|
(125,049)
|
|
Net cash received from acquisitions
|
578,573
|
-
|
|
Net decrease in loans
|
54,013
|
78,803
|
|
Sale of branches
|
-
|
(23,987)
|
|
Purchases of premises and equipment – net
|
(1,821)
|
(7,242)
|
|
Net cash provided by investing activities
|
58,143
|
81,581
|
|
FINANCING ACTIVITIES:
|
|||
Decrease in deposits
|
(2,714)
|
(189,291)
|
|
Proceeds from Federal Home Loan Bank borrowings
|
-
|
153,586
|
|
Repayment of Federal Home Loan Bank borrowings
|
(15,043)
|
(28,035)
|
|
Decrease in other short-term borrowings
|
(17,794)
|
(27,760)
|
|
(Decrease) Increase in federal funds purchased
|
(52,000)
|
52,000
|
|
Dividends paid to common and preferred shareholders
|
(16,550)
|
(14,865)
|
|
Treasury shares sold – net
|
111
|
11
|
|
Net cash used in financing activities
|
(103,990)
|
(54,354)
|
|
Net (decrease) increase in cash and cash equivalents
|
(49,273)
|
56,507
|
|
Cash and cash equivalents at beginning of the period
|
141,170
|
130,495
|
|
Cash and cash equivalents at end of the period
|
$ 91,897
|
$ 187,002
|
|
SUPPLEMENTAL DISCLOSURES:
|
|||
Interest paid on deposits and other borrowings
|
$ 49,247
|
$ 66,455
|
|
Income taxes paid
|
4,725
|
2,000
|
|
Transfers of loans to other real estate owned
|
1,503
|
486
|
|
Summary of business acquistion:
|
|||
Fair value of tangible assets acquired (including cash of $599,266)
|
600,257
|
-
|
|
Fair value of liabilities assumed
|
(603,086)
|
-
|
|
Cash paid in the acquisition
|
(20,693)
|
-
|
|
Goodwill and other intangibles recognized
|
$ (23,522)
|
$ -
|
For the Three Months Ended
|
For the Six Months Ended
|
|||||
June 30,
|
June 30,
|
|||||
(Unaudited, in thousands, except shares and per share amounts)
|
2009
|
2008
|
2009
|
2008
|
||
Numerator for both basic and diluted earnings per share:
|
||||||
Net Income
|
$ 5,744
|
$ 11,284
|
$ 11,194
|
$ 20,787
|
||
Less: Preferred dividends
|
$ (1,057)
|
$ -
|
$ (2,112)
|
$ -
|
||
Net Income Available to Common Shareholders
|
$ 4,687
|
$ 11,284
|
$ 9,082
|
$ 20,787
|
||
Denominator:
|
||||||
Total average basic common shares outstanding
|
26,567,653
|
26,547,498
|
26,564,589
|
26,547,286
|
||
Effect of dilutive stock options
|
1,099
|
6,226
|
1,927
|
9,546
|
||
Total diluted average common shares outstanding
|
26,568,752
|
26,553,724
|
26,566,516
|
26,556,832
|
||
Earnings per share - basic
|
$ 0.18
|
$ 0.42
|
$ 0.34
|
$ 0.78
|
||
Earnings per share - diluted
|
$ 0.18
|
$ 0.42
|
$ 0.34
|
$ 0.78
|
(unaudited, in thousands)
|
Fair Value of
Tangible Net Assets
Acquired
|
Cash
|
$ 599,265
|
Other tangible assets
|
991
|
Goodwill and other intangibles
|
23,522
|
Deposits
|
(599,353)
|
Other liabilities
|
(3,273)
|
Total purchase price
|
$ 21,152
|
June 30, 2009
|
December 31, 2008
|
||||||||||
Gross
|
Gross
|
Estimated
|
Gross
|
Gross
|
Estimated
|
||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
||||
(in thousands)
|
Cost
|
Gains
|
Losses
|
Value
|
Cost
|
Gains
|
Losses
|
Value
|
|||
Available-for-sale securities
|
|||||||||||
Other government agencies
|
$ 210,665
|
$ 835
|
$ (592)
|
$ 210,908
|
$ 39,241
|
$ 768
|
$ -
|
$ 40,009
|
|||
Corporate debt securities
|
37,542
|
378
|
(36)
|
37,884
|
3,019
|
130
|
-
|
3,149
|
|||
Residential mortgage-backed securities and collateralized mortgage obligations of government agencies
|
814,056
|
13,038
|
(4,138)
|
822,956
|
513,942
|
10,130
|
(175)
|
523,897
|
|||
Other residential collateralized mortgage obligations
|
3,735
|
7
|
(62)
|
3,680
|
4,242
|
19
|
(111)
|
4,150
|
|||
Obligations of state and political subdivisions
|
370,102
|
7,782
|
(1,164)
|
376,720
|
352,995
|
7,834
|
(1,404)
|
359,425
|
|||
Total debt securities
|
1,436,100
|
22,040
|
(5,992)
|
1,452,148
|
913,439
|
18,881
|
(1,690)
|
930,630
|
|||
Equity securities
|
3,389
|
345
|
(37)
|
3,697
|
3,143
|
394
|
(29)
|
3,508
|
|||
Total available-for-sale securities
|
$1,439,489
|
$ 22,385
|
$ (6,029)
|
$ 1,455,845
|
$916,582
|
$ 19,275
|
$ (1,719)
|
$934,138
|
|||
Held-to-maturity securities
|
-
|
||||||||||
Corporate debt securities
|
1,450
|
-
|
(519)
|
931
|
1,450
|
-
|
(236)
|
1,214
|
|||
Total held-to-maturity securities
|
$ 1,450
|
$ -
|
$ (519)
|
$ 931
|
$ 1,450
|
$ -
|
$ (236)
|
$ 1,214
|
|||
Other short-term investments
|
$ 50,039
|
-
|
-
|
50,039
|
-
|
-
|
-
|
-
|
|||
Total securities
|
$1,490,978
|
$ 22,385
|
$ (6,548)
|
$ 1,506,815
|
$918,032
|
$ 19,275
|
$ (1,955)
|
$935,352
|
June 30, 2009
|
|||||||
|
After One But
|
After Five But
|
|
||||
Within One Year
|
Within Five Years
|
Within Ten Years
|
After Ten Years
|
||||
(dollars in thousands)
|
Amount
|
Amount
|
Amount
|
Amount
|
|||
Securities available-for-sale:
(1)
|
|||||||
Other government agencies
|
$ 106,408
|
$ 93,779
|
$ 10,721
|
$ -
|
|||
Corporate debt securities
|
4,841
|
33,043
|
-
|
-
|
|||
Residential mortgage-backed securities and
|
|
|
|
|
|||
collateralized mortgage obligations of
|
|||||||
government agencies
(2)
|
88,268 | 559,528 | 153,880 | 21,280 | |||
Other residential collateralized mortgage obligations
|
-
|
3,637
|
-
|
43
|
|||
Obligations of states and political subdivisions
|
79,025
|
147,521
|
97,999
|
52,175
|
|||
Equity securities
|
-
|
-
|
-
|
3,697
|
|||
Total securities available-for-sale
|
$ 278,542
|
$ 837,508
|
$ 262,600
|
$ 77,195
|
|||
Securities held-to-maturity (at amortized cost):
|
|||||||
Corporate debt securities
|
-
|
-
|
-
|
1,450
|
|||
Total held-to-maturity securities
|
$ -
|
$ -
|
$ -
|
$ 1,450
|
|||
Other short-term investments
|
50,039
|
-
|
-
|
-
|
|||
Total securities
|
$ 328,581
|
$ 837,508
|
|
$ 262,600
|
|
$ 78,645
|
|
(2)
Mortgage-backed and collateralized mortgage securities, which have prepayment provisions, are assigned to maturity categories based on estimated average lives or repricing information.
|
June 30, 2009
|
|||||||||
Less than 12 months
|
12 months or more
|
Total
|
|||||||
Fair
|
Unrealized
|
# of
|
Fair
|
Unrealized
|
# of
|
Fair
|
Unrealized
|
# of
|
|
(unaudited, dollars in thousands)
|
Value
|
Losses
|
Securities
|
Value
|
Losses
|
Securities
|
Value
|
Losses
|
Securities
|
Other government agencies
|
$ 87,259
|
$ (592)
|
11
|
$ -
|
$ -
|
-
|
$ 87,259
|
$ (592)
|
11
|
Residential mortgage-backed securities and collateralized mortgage obligations of government agencies
|
356,179
|
(4,074)
|
38
|
5,663
|
(64)
|
5
|
361,842
|
(4,138)
|
43
|
Other residential collateralized mortgage obligations
|
-
|
-
|
-
|
3,638
|
(62)
|
5
|
3,638
|
(62)
|
5
|
Obligations of states and political subdivisions
|
31,922
|
(706)
|
50
|
23,235
|
(458)
|
59
|
55,157
|
(1,164)
|
109
|
Corporate debt securities
|
6,081
|
(36)
|
3
|
931
|
(519)
|
1
|
7,012
|
(555)
|
4
|
Equity securities
|
184
|
(37)
|
2
|
-
|
-
|
-
|
184
|
(37)
|
2
|
Total temporarily impaired securities
|
$ 481,625
|
$ (5,445)
|
104
|
$ 33,467
|
$ (1,103)
|
70
|
$515,092
|
$ (6,548)
|
174
|
December 31, 2008
|
|||||||||
Less than 12 months
|
12 months or more
|
Total
|
|||||||
Fair
|
Unrealized
|
# of
|
Fair
|
Unrealized
|
# of
|
Fair
|
Unrealized
|
# of
|
|
(unaudited, dollars in thousands)
|
Value
|
Losses
|
Securities
|
Value
|
Losses
|
Securities
|
Value
|
Losses
|
Securities
|
Residential mortgage-backed securities and collateralized mortgage obligations of government agencies
|
$ 2,956
|
$ (6)
|
12
|
$ 16,321
|
$ (169)
|
10
|
$ 19,277
|
$ (175)
|
22
|
Other residential collateralized mortgage obligations
|
-
|
-
|
-
|
4,095
|
(111)
|
5
|
4,095
|
(111)
|
5
|
Obligations of states and political subdivisions
|
42,034
|
(1,171)
|
72
|
12,502
|
(233)
|
24
|
54,536
|
(1,404)
|
96
|
Corporate debt securities
|
1,214
|
(236)
|
1
|
-
|
-
|
-
|
1,214
|
(236)
|
1
|
Equity securities
|
1,289
|
(29)
|
2
|
-
|
-
|
-
|
1,289
|
(29)
|
2
|
Total temporarily impaired securities
|
$ 47,493
|
$ (1,442)
|
87
|
$ 32,918
|
$ (513)
|
39
|
$ 80,411
|
$ (1,955)
|
126
|
For the Six Months Ended
|
||
June 30,
|
||
(unaudited, in thousands)
|
2009
|
2008
|
Balance at beginning of period
|
$ 49,803
|
$ 38,543
|
Provision for loan losses
|
19,950
|
10,981
|
Charge-offs
|
(12,119)
|
(9,649)
|
Recoveries
|
938
|
1,977
|
Net charge-offs
|
(11,181)
|
(7,672)
|
Balance at end of period
|
$ 58,572
|
$ 41,852
|
The following tables summarize loans classified as impaired:
|
||
June 30,
|
December 31,
|
|
(unaudited, in thousands)
|
2009
|
2008
|
Balance of impaired loans with no allocated allowance for loan losses
|
$ 60,660
|
$ 25,296
|
Balance of impaired loans with an allocated allowance for loan losses
|
36,387
|
22,202
|
Total impaired loans
|
$ 97,047
|
$ 47,498
|
Allowance for loan losses allocated to impaired loans
|
$ 9,215
|
$ 5,113
|
(unaudited, in thousands)
|
Scheduled
|
Weighted
|
Year
|
Maturity
|
Average Rate
|
2009
|
$ 82,567
|
4.22%
|
2010
|
261,526
|
3.84%
|
2011
|
85,052
|
3.76%
|
2012
|
56,704
|
4.45%
|
2013
|
51,031
|
3.28%
|
2014 and thereafter
|
43,664
|
3.86%
|
Total
|
$ 580,544
|
3.89%
|
June 30,
|
December 31,
|
|
(unaudited, in thousands)
|
2009
|
2008
|
Federal funds purchased
|
$ -
|
$ 52,000
|
Securities sold under agreements to repurchase
|
224,011
|
245,165
|
Treasury tax and loan notes and other
|
3,789
|
640
|
Total
|
$ 227,800
|
$ 297,805
|
For the Three Months Ended
|
For the Six Months Ended
|
||||||
June 30,
|
June 30,
|
||||||
(Unaudited, in thousands)
|
2009
|
2008
|
2009
|
2008
|
|||
Service cost – benefits earned during year
|
$ 599
|
$ 577
|
$ 1,199
|
$ 1,154
|
|||
Interest cost on projected benefit obligation
|
837
|
792
|
1,674
|
1,584
|
|||
Expected return on plan assets
|
(944)
|
(1,138)
|
(1,889)
|
(2,276)
|
|||
Amortization of prior service cost
|
(29)
|
(29)
|
(59)
|
(59)
|
|||
Amortization of net loss
|
476
|
129
|
952
|
258
|
|||
Net periodic pension cost
|
$ 939
|
$ 331
|
$ 1,877
|
$ 661
|
June 30, 2009
|
||||
Fair Value Measurements Using:
|
||||
Asset at Fair Value
|
Quoted Prices in Active Markets for Identical Assets
|
Significant Other Observable Inputs
|
Significant Unobservable Inputs
|
|
(unaudited - in thousands)
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|
Securities - available for sale
|
$ 1,455,845
|
$ 212,786
|
$ 1,241,323
|
$ 1,736
|
Other short-term investments
|
50,039
|
50,039
|
-
|
-
|
December 31, 2008
|
||||
Fair Value Measurements Using:
|
||||
Asset at Fair Value
|
Quoted Prices in Active Markets for Identical Assets
|
Significant Other Observable Inputs
|
Significant Unobservable Inputs
|
|
(unaudited - in thousands)
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|
Securities - available for sale
|
$ 934,138
|
$ 41,818
|
$ 890,552
|
$ 1,768
|
For the Three Months Ended
|
For the Six Months Ended
|
||||||
June 30,
|
June 30,
|
||||||
(unaudited - in thousands)
|
2009
|
2008
|
2009
|
2008
|
|||
Balance at beginning of period
|
$ 1,706
|
$ 5,801
|
$ 1,768
|
$ 5,994
|
|||
Total gains (losses) - (realized/unrealized):
|
|||||||
Included in earnings
|
-
|
-
|
-
|
-
|
|||
Included in other comprehensive income
|
30
|
(363)
|
(7)
|
(556)
|
|||
Purchases, issuances, and settlements
|
-
|
-
|
-
|
-
|
|||
Transfers in or (out) of Level 3
|
-
|
-
|
(25)
|
-
|
|||
Balance at end of period
|
$ 1,736
|
$ 5,438
|
$ 1,736
|
$ 5,438
|
Fair Value Measurements Using:
|
||||
Assets at Fair Value
|
Quoted Prices in Active Markets for Identical Assets
|
Significant Other Observable Inputs
|
Significant Unobservable Inputs
|
|
(unaudited - in thousands)
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|
June 30, 2009
|
||||
Impaired loans (1)
|
$ 27,172
|
$ -
|
$ -
|
$ 27,172
|
Mortgage servicing rights (2)
|
2,655
|
-
|
-
|
2,655
|
December 31, 2008
|
||||
Impaired loans (1)
|
$ 17,089
|
$ -
|
$ -
|
$ 17,089
|
|
(1)
|
Represents the carrying value of loans for which adjustments are based on the appraised value of the collateral.
|
|
(2)
|
Represents the carrying value of mortgage servicing rights whose value has been impaired and therefore written down to their fair value as determined from independent valuations.
|
June 30,
|
December 31,
|
||||||||||
2009
|
2008
|
||||||||||
Carrying
|
Fair
|
Carrying
|
Fair
|
||||||||
(in thousands)
|
Amount
|
Value
|
Amount
|
Value
|
|||||||
Financial assets:
|
|||||||||||
Cash and due from banks
|
$ 91,897
|
$ 91,897
|
$ 141,170
|
$ 141,170
|
|||||||
Securities held-to-maturity
|
1,450
|
931
|
1,450
|
1,214
|
|||||||
Securities available-for-sale
|
1,455,845
|
1,455,845
|
934,138
|
934,138
|
|||||||
Other short-term investments
|
50,039
|
50,039
|
-
|
-
|
|||||||
Net loans
|
3,482,882
|
3,524,444
|
3,554,506
|
3,626,774
|
|||||||
Loans held for sale
|
9,223
|
9,223
|
3,874
|
3,874
|
|||||||
Accrued interest receivable
|
21,796
|
21,796
|
19,966
|
19,966
|
|||||||
Bank owned life insurance
|
102,973
|
102,973
|
101,229
|
101,229
|
|||||||
Financial liabilities:
|
|||||||||||
Deposits
|
4,100,523
|
4,117,522
|
3,503,916
|
3,508,233
|
|||||||
Federal Home Loan Bank borrowings
|
580,544
|
591,426
|
596,890
|
617,518
|
|||||||
Other borrowings
|
227,800
|
223,155
|
297,805
|
297,741
|
|||||||
Junior subordinated debt
|
111,153
|
62,377
|
111,110
|
53,178
|
|||||||
Accrued interest payable
|
13,148
|
13,148
|
10,492
|
10,492
|
For the Three Months Ended
|
For the Six Months Ended
|
|||||
June 30,
|
June 30,
|
|||||
(Unaudited, in thousands)
|
2009
|
2008
|
2009
|
2008
|
||
Net Income
|
$ 5,744
|
$ 11,284
|
$ 11,194
|
$ 20,787
|
||
Securities available-for-sale:
|
||||||
Net change in unrealized gains (losses) on securities available-for-sale
|
(4,126)
|
(13,562)
|
1,403
|
(4,029)
|
||
Related income tax (expense) benefit
(1)
|
1,541
|
5,271
|
(524)
|
1,565
|
||
Net securities (gains) losses reclassified into earnings
|
(2,462)
|
(400)
|
(2,604)
|
(906)
|
||
Related income tax expense (benefit)
(1)
|
920
|
159
|
973
|
359
|
||
Net effect on other comprehensive income for the period
|
(4,127)
|
(8,532)
|
(752)
|
(3,011)
|
||
Cash flow hedge derivatives:
|
||||||
Net change in unrealized gains (losses) on derivatives
|
-
|
55
|
-
|
58
|
||
Related income tax (expense) benefit
(1)
|
-
|
(22)
|
-
|
(23)
|
||
Net effect on other comprehensive income for the period
|
-
|
33
|
-
|
35
|
||
Defined benefit pension plan
|
||||||
Amortization of prior service costs
|
(29)
|
(29)
|
(58)
|
(58)
|
||
Related income tax expense (benefit)
(1)
|
11
|
12
|
22
|
24
|
||
Amortization of unrealized loss
|
475
|
128
|
944
|
256
|
||
Related income tax expense (benefit)
(1)
|
(177)
|
(51)
|
(353)
|
(102)
|
||
Net effect on other comprehensive income for the period
|
280
|
60
|
555
|
120
|
||
Other comprehensive income
|
(3,847)
|
(8,439)
|
(197)
|
(2,856)
|
||
Total comprehensive income
|
$ 1,897
|
$ 2,845
|
$ 10,997
|
$ 17,931
|
Net Unrealized Gains
|
|||||||
Unrealized
|
(Losses) on Derivative
|
||||||
Defined
|
Gains (Losses)
|
Instruments Used in
|
|||||
Benefit
|
on Securities
|
Cash Flow Hedging
|
|||||
(unaudited, in thousands)
|
Pension Plan
|
Available-for-Sale
|
Relationships
|
Total
|
|||
Balance at January 1, 2009
|
$ (14,132)
|
$ 10,950
|
$ -
|
$ (3,182)
|
|||
Period change, net of tax
|
555
|
(752)
|
-
|
(197)
|
|||
Balance at June 30, 2009
|
$ (13,577)
|
$ 10,198
|
$ -
|
$ (3,379)
|
|||
Balance at January 1, 2008
|
$ (3,893)
|
$ 5,379
|
$ (36)
|
$ 1,450
|
|||
Period change, net of tax
|
120
|
(3,011)
|
35
|
(2,856)
|
|||
Balance at June 30, 2008
|
$ (3,773)
|
$ 2,368
|
$ (1)
|
$ (1,406)
|
June 30,
|
December 31,
|
|
(unaudited, in thousands)
|
2009
|
2008
|
Commitments to extend credit
|
$ 672,146
|
$ 728,994
|
Standby letters of credit
|
33,678
|
34,209
|
Commercial letters of credit
|
182
|
2,585
|
Weighted
|
||||||||||
Weighted
|
Average
|
|||||||||
Average
|
Remaining
|
|||||||||
Exercise Price
|
Contractual
|
|||||||||
(unaudited, in thousands, except shares, per share amounts and term)
|
Shares
|
Per Share
|
Life in Years
|
|||||||
Outstanding at January 1, 2009
|
393,127
|
$ 23.91
|
||||||||
Granted
|
-
|
-
|
||||||||
Exercised
|
(6,764)
|
14.97
|
||||||||
Forfeited or expired
|
(14,144)
|
25.75
|
||||||||
Outstanding at June 30, 2009
|
372,219
|
$ 24.00
|
3.98
|
|||||||
Vested and exercisable at June 30, 2009
|
372,219
|
$ 24.00
|
3.98
|
Trust and
|
|||
Community
|
Investment
|
||
(Unaudited, in thousands)
|
Banking
|
Services
|
Consolidated
|
Income Statement Data
|
|||
For the Three Months ended June 30, 2009:
|
|||
Interest income
|
$ 66,079
|
$ -
|
$ 66,079
|
Interest expense
|
26,828
|
-
|
26,828
|
Net interest income
|
39,251
|
-
|
39,251
|
Provision for credit losses
|
10,269
|
-
|
10,269
|
Net interest income after provision for credit losses
|
28,982
|
-
|
28,982
|
Non-interest income
|
13,021
|
3,288
|
16,309
|
Non-interest expense
|
37,274
|
2,271
|
39,545
|
Income before provision for income taxes
|
4,729
|
1,017
|
5,746
|
Provision for income taxes
|
(405)
|
407
|
2
|
Net income
|
$ 5,134
|
$ 610
|
$ 5,744
|
For the Three Months ended June 30, 2008:
|
|||
Interest income
|
$ 70,588
|
$ -
|
$ 70,588
|
Interest expense
|
29,929
|
-
|
29,929
|
Net interest income
|
40,659
|
-
|
40,659
|
Provision for credit losses
|
5,723
|
-
|
5,723
|
Net interest income after provision for credit losses
|
34,936
|
-
|
34,936
|
Non-interest income
|
10,852
|
3,939
|
14,791
|
Non-interest expense
|
33,190
|
2,880
|
36,070
|
Income before provision for income taxes
|
12,598
|
1,059
|
13,657
|
Provision for income taxes
|
1,949
|
424
|
2,373
|
Net income
|
$ 10,649
|
$ 635
|
$ 11,284
|
For the Six Months ended June 30, 2009:
|
|||
Interest income
|
$ 129,280
|
$ -
|
$ 129,280
|
Interest expense
|
51,902
|
-
|
51,902
|
Net interest income
|
77,378
|
-
|
77,378
|
Provision for credit losses
|
19,819
|
-
|
19,819
|
Net interest income after provision for credit losses
|
57,559
|
-
|
57,559
|
Non-interest income
|
22,105
|
6,641
|
28,746
|
Non-interest expense
|
69,680
|
4,678
|
74,358
|
Income before provision for income taxes
|
9,984
|
1,963
|
11,947
|
Provision for income taxes
|
(32)
|
785
|
753
|
Net income
|
$ 10,016
|
$ 1,178
|
$ 11,194
|
For the Six Months ended June 30, 2008:
|
|||
Interest income
|
$ 145,369
|
$ -
|
$ 145,369
|
Interest expense
|
65,966
|
-
|
65,966
|
Net interest income
|
79,403
|
-
|
79,403
|
Provision for credit losses
|
11,148
|
-
|
11,148
|
Net interest income after provision for credit losses
|
68,255
|
-
|
68,255
|
Non-interest income
|
21,823
|
8,063
|
29,886
|
Non-interest expense
|
67,724
|
5,006
|
72,730
|
Income before provision for income taxes
|
22,354
|
3,057
|
25,411
|
Provision for income taxes
|
3,401
|
1,223
|
4,624
|
Net income
|
$ 18,953
|
$ 1,834
|
$ 20,787
|
For the Three Months Ended
|
For the Six Months Ended
|
||||||||||
June 30,
|
June 30,
|
||||||||||
(unaudited, in thousands)
|
2009
|
2008
|
2009
|
2008
|
|||||||
Net interest income
|
$ 39,251
|
$ 40,659
|
$ 77,378
|
$ 79,403
|
|||||||
Taxable equivalent adjustments to net interest income
|
1,991
|
1,898
|
3,883
|
3,944
|
|||||||
Net interest income, fully taxable equivalent
|
$ 41,242
|
$ 42,557
|
$ 81,261
|
$ 83,347
|
|||||||
Net interest spread, non-taxable equivalent
|
2.75%
|
3.28%
|
2.85%
|
3.22%
|
|||||||
Benefit of net non-interest bearing liabilities
|
0.27%
|
0.30%
|
0.30%
|
0.29%
|
|||||||
Net interest margin
|
3.02%
|
3.58%
|
3.15%
|
3.51%
|
|||||||
Taxable equivalent adjustment
|
0.15%
|
0.17%
|
0.16%
|
0.17%
|
|||||||
Net interest margin, fully taxable equivalent
|
3.17%
|
3.75%
|
3.31%
|
3.68%
|
For the Three Months Ended June 30,
|
For the Six Months Ended June 30,
|
|||||||||
2009
|
2008
|
2009
|
2008
|
|||||||
Average
|
Average
|
Average
|
Average
|
Average
|
Average
|
Average
|
Average
|
|||
(unaudited, in thousands)
|
Balance
|
Rate
|
Balance
|
Rate
|
Balance
|
Rate
|
Balance
|
Rate
|
||
ASSETS
|
||||||||||
Due from banks - interest bearing
|
$ 56,111
|
0.32%
|
$ 7,971
|
7.38%
|
$ 46,063
|
0.20%
|
$ 6,024
|
5.51%
|
||
Loans, net of unearned income
(1)
|
3,563,495
|
5.79%
|
3,654,575
|
6.54%
|
3,581,004
|
5.83%
|
3,688,942
|
6.71%
|
||
Securities:
(2)
|
||||||||||
Taxable
|
1,215,980
|
3.55%
|
522,162
|
5.44%
|
936,302
|
3.91%
|
488,910
|
5.86%
|
||
Tax-exempt
(3)
|
343,499
|
6.63%
|
329,607
|
6.58%
|
335,929
|
6.61%
|
320,781
|
7.03%
|
||
Total securities
|
1,559,479
|
4.23%
|
851,769
|
5.88%
|
1,272,231
|
4.62%
|
809,691
|
6.32%
|
||
Federal funds sold
|
-
|
-
|
8,218
|
2.24%
|
4,155
|
0.24%
|
19,732
|
2.71%
|
||
Other earning assets
|
31,918
|
0.79%
|
29,256
|
4.47%
|
32,129
|
1.05%
|
28,898
|
3.69%
|
||
Total earning assets
(3)
|
5,211,003
|
5.24%
|
4,551,789
|
6.40%
|
4,935,582
|
5.43%
|
4,553,287
|
6.60%
|
||
Other assets
|
637,759
|
663,014
|
618,840
|
714,084
|
||||||
Total Assets
|
$ 5,848,762
|
$ 5,214,803
|
$ 5,554,422
|
$ 5,267,371
|
||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||||
Interest bearing demand deposits
|
$ 468,921
|
0.62%
|
$ 440,524
|
0.97%
|
$ 450,750
|
0.62%
|
$ 428,064
|
1.49%
|
||
Money market accounts
|
647,623
|
1.14%
|
551,266
|
1.57%
|
566,475
|
1.10%
|
572,847
|
1.60%
|
||
Savings deposits
|
484,192
|
0.53%
|
445,131
|
0.67%
|
458,455
|
0.52%
|
444,375
|
0.79%
|
||
Certificates of deposit
|
2,074,433
|
2.85%
|
1,772,779
|
3.96%
|
1,906,405
|
2.98%
|
1,840,031
|
4.27%
|
||
Total interest bearing deposits
|
3,675,169
|
1.96%
|
3,209,700
|
2.69%
|
3,382,085
|
2.02%
|
3,285,317
|
2.97%
|
||
Federal Home Loan Bank borrowings
|
584,381
|
3.85%
|
465,568
|
4.03%
|
588,788
|
3.85%
|
458,953
|
4.05%
|
||
Other borrowings
|
232,467
|
3.05%
|
297,255
|
2.82%
|
235,253
|
3.29%
|
288,997
|
3.32%
|
||
Junior subordinated debt
|
111,142
|
5.31%
|
111,053
|
6.33%
|
111,132
|
5.46%
|
111,039
|
6.56%
|
||
Total interest bearing liabilities
|
4,603,159
|
2.34%
|
4,083,576
|
2.95%
|
4,317,258
|
2.42%
|
4,144,306
|
3.21%
|
||
Non-interest bearing demand deposits
|
526,951
|
499,875
|
520,995
|
492,648
|
||||||
Other liabilities
|
56,490
|
40,018
|
52,956
|
43,376
|
||||||
Shareholders’ Equity
|
662,162
|
591,334
|
663,213
|
587,041
|
||||||
Total Liabilities and
|
||||||||||
Shareholders’ Equity
|
$ 5,848,762
|
$ 5,214,803
|
$ 5,554,422
|
$ 5,267,371
|
||||||
Net Interest Spread
|
2.90%
|
3.45%
|
3.01%
|
3.39%
|
||||||
Taxable equivalent net yield on average earning assets
(3)
|
3.17%
|
3.75%
|
3.31%
|
3.68%
|
(1)
|
Gross of allowance for loan losses and net of unearned income, includes non-accrual and loans held for sale, loan fees included in interest income on loans are not material.
|
(2)
|
Average yields on available-for-sale securities are calculated based on amortized cost.
|
(3)
|
Taxable equivalent basis is calculated on tax-exempt securities using a tax rate of 35% for each year presented.
|
Three Months Ended June 30, 2009 | Six Months Ended June 30, 2009 | ||||||||
Compared to June 30, 2008 | Compared to June 30, 2008 | ||||||||
Net Increase
|
Net Increase
|
||||||||
(unaudited, in thousands)
|
Volume
|
Rate
|
(Decrease)
|
Volume
|
Rate
|
(Decrease)
|
|||
Increase (decrease) in interest income:
|
|||||||||
Due from banks - interest bearing
|
$ 154
|
$ (256)
|
$ (102)
|
$ 171
|
$ (292)
|
$ (121)
|
|||
Loans, net of unearned income
|
(1,426)
|
(6,528)
|
(7,954)
|
(3,506)
|
(15,713)
|
(19,219)
|
|||
Taxable securities
|
6,839
|
(3,155)
|
3,684
|
9,909
|
(5,919)
|
3,990
|
|||
Tax-exempt securities
(1)
|
230
|
36
|
266
|
518
|
(690)
|
(172)
|
|||
Federal funds sold
|
(23)
|
(23)
|
(46)
|
(122)
|
(140)
|
(262)
|
|||
Other interest income
|
27
|
(291)
|
(264)
|
54
|
(419)
|
(365)
|
|||
Total interest income change
(1)
|
5,801
|
(10,217)
|
(4,416)
|
7,024
|
(23,173)
|
(16,149)
|
|||
Increase (decrease) in interest expense:
|
|||||||||
Interest bearing demand deposits
|
65
|
(400)
|
(335)
|
157
|
(1,956)
|
(1,799)
|
|||
Money market accounts
|
340
|
(646)
|
(306)
|
(50)
|
(1,388)
|
(1,438)
|
|||
Savings deposits
|
62
|
(159)
|
(97)
|
53
|
(606)
|
(553)
|
|||
Certificates of deposit
|
2,684
|
(5,402)
|
(2,718)
|
1,360
|
(12,151)
|
(10,791)
|
|||
Federal Home Loan Bank borrowings
|
1,160
|
(211)
|
949
|
2,498
|
(461)
|
2,037
|
|||
Other borrowings
|
(479)
|
162
|
(317)
|
(877)
|
(39)
|
(916)
|
|||
Junior subordinated debt
|
1
|
(278)
|
(277)
|
3
|
(607)
|
(604)
|
|||
Total interest expense change
|
3,833
|
(6,934)
|
(3,101)
|
3,144
|
(17,208)
|
(14,064)
|
|||
Net interest income decrease
(1)
|
$ 1,968
|
$ (3,283)
|
$ (1,315)
|
$ 3,880
|
$ (5,965)
|
$ (2,085)
|
For the Three Months
|
For the Six Months
|
||||||||||
Ended June 30,
|
Ended June 30,
|
||||||||||
(unaudited, dollars in thousands)
|
2009
|
2008
|
$ Change
|
% Change
|
2009
|
2008
|
$ Change
|
||||
Trust fees
|
$ 3,288
|
$ 3,939
|
$ (651)
|
(16.5%)
|
$ 6,641
|
$ 8,063
|
$ (1,422)
|
||||
Service charges on deposits
|
6,076
|
6,020
|
56
|
0.9%
|
11,294
|
11,623
|
(329)
|
||||
Bank-owned life insurance
|
897
|
902
|
(5)
|
(0.6%)
|
1,788
|
1,762
|
26
|
||||
Net securities gains (losses)
|
2,462
|
400
|
2,062
|
515.5%
|
2,604
|
906
|
1,698
|
||||
Net gains on sales of loans
|
297
|
408
|
(111)
|
(27.2%)
|
785
|
464
|
321
|
||||
Other Income
|
|||||||||||
Service fees on ATM's and debit cards
|
1,880
|
1,631
|
249
|
15.3%
|
3,601
|
3,256
|
345
|
||||
Net securities brokerage revenue
|
1,175
|
630
|
545
|
86.5%
|
1,800
|
1,314
|
486
|
||||
Net insurance services revenue
|
543
|
763
|
(220)
|
(28.8%)
|
1,126
|
1,439
|
(313)
|
||||
Gain (loss) on sale of other real estate
|
|||||||||||
owned and repossessed assets
|
(363)
|
(230)
|
(133)
|
(57.8%)
|
(478)
|
(718)
|
240
|
||||
Other
|
54
|
328
|
(274)
|
(83.5%)
|
(415)
|
1,777
|
(2,192)
|
||||
Total other income
|
3,289
|
3,122
|
167
|
5.3%
|
5,634
|
7,068
|
(1,434)
|
||||
Total non-interest income
|
$ 16,309
|
|
$ 14,791
|
$ 1,518
|
10.3%
|
$ 28,746
|
$ 29,886
|
$ (1,140)
|
For the Three Months
|
For the Six Months
|
||||||||||
|
Ended June 30,
|
Ended June 30,
|
|||||||||
(unaudited, dollars in thousands)
|
2009
|
2008
|
$ Change
|
% Change
|
2009
|
2008
|
$ Change
|
% Change
|
|||
Salaries and wages
|
$ 13,998
|
$ 13,933
|
$ 65
|
0.5%
|
$ 27,165
|
$ 27,871
|
$ (706)
|
(2.5%)
|
|||
Employee benefits
|
5,061
|
4,290
|
771
|
18.0%
|
9,768
|
8,918
|
850
|
9.5%
|
|||
Net occupancy
|
2,361
|
2,435
|
(74)
|
(3.0%)
|
5,105
|
5,523
|
(418)
|
(7.6%)
|
|||
Equipment
|
2,687
|
2,862
|
(175)
|
(6.1%)
|
5,229
|
5,446
|
(217)
|
(4.0%)
|
|||
Marketing
|
1,720
|
1,211
|
509
|
42.0%
|
2,476
|
2,380
|
96
|
4.0%
|
|||
FDIC Insurance
|
4,322
|
152
|
4,170
|
2743.4%
|
5,576
|
264
|
5,312
|
2012.1%
|
|||
Amortization of intangible assets
|
812
|
908
|
(96)
|
(10.6%)
|
1,509
|
1,922
|
(413)
|
(21.5%)
|
|||
Restructuring and merger-related expenses
|
192
|
1,656
|
(1,464)
|
(88.4%)
|
621
|
2,705
|
(2,084)
|
(77.0%)
|
|||
Other operating expenses
|
|||||||||||
Miscellaneous franchise, and other taxes
|
1,495
|
1,973
|
(478)
|
(24.2%)
|
2,928
|
3,837
|
(909)
|
(23.7%)
|
|||
Consulting, regulatory, and advisory fees
|
1,221
|
1,128
|
93
|
8.2%
|
2,300
|
2,645
|
(345)
|
(13.0%)
|
|||
Postage
|
840
|
1,102
|
(262)
|
(23.8%)
|
1,766
|
2,146
|
(380)
|
(17.7%)
|
|||
ATM and interchange expenses
|
861
|
669
|
192
|
28.7%
|
1,686
|
1,269
|
417
|
32.9%
|
|||
Communications
|
755
|
726
|
29
|
4.0%
|
1,482
|
1,413
|
69
|
4.9%
|
|||
Legal fees
|
636
|
388
|
248
|
63.9%
|
1,358
|
911
|
447
|
49.1%
|
|||
Supplies
|
656
|
657
|
(1)
|
(0.2%)
|
1,302
|
1,323
|
(21)
|
(1.6%)
|
|||
Other
|
1,928
|
1,980
|
(52)
|
(2.6%)
|
4,087
|
4,157
|
(70)
|
(1.7%)
|
|||
Total other operating expenses
|
8,392
|
8,623
|
(231)
|
(2.7%)
|
16,909
|
17,701
|
(792)
|
(4.5%)
|
|||
Total non-interest expense
|
$ 39,545
|
|
$ 36,070
|
$ 3,475
|
9.6%
|
$ 74,358
|
|
$ 72,730
|
$ 1,628
|
2.2%
|
June 30,
|
December 31,
|
|
|||
(unaudited, dollars in thousands)
|
2009
|
2008
|
$ Change
|
% Change
|
|
Securities available-for-sale (at fair value):
|
|||||
Other government agencies
|
$ 210,908
|
$ 40,009
|
$ 170,899
|
427.2%
|
|
Corporate debt securities
|
37,884
|
3,149
|
34,735
|
1103.0%
|
|
Residential mortgage-backed securities and collateralized
|
822,956
|
523,897
|
299,059
|
57.1%
|
|
mortgage obligations of government agencies
|
|||||
Other residential collateralized mortgage obligations
|
3,680
|
4,150
|
(470)
|
(11.3%)
|
|
Obligations of states and political subdivisions
|
376,720
|
359,425
|
17,295
|
4.8%
|
|
Equity securities
|
3,697
|
3,508
|
189
|
5.4%
|
|
Total securities available-for-sale
|
$ 1,455,845
|
$ 934,138
|
$ 521,707
|
55.8%
|
|
Securities held-to-maturity (at amortized cost):
|
|||||
Corporate debt securities
|
1,450
|
1,450
|
-
|
0.0%
|
|
Other short-term investments
|
50,039
|
-
|
50,039
|
100.0%
|
|
Total securities
|
$ 1,507,334
|
$ 935,588
|
$ 571,746
|
61.1%
|
|
Available-for-sale securities:
|
|
|
|||
Weighted average yield at the respective period end
|
4.53%
|
5.51%
|
|||
As a % of total securities
|
96.6%
|
99.8%
|
|||
Weighted average life (in years)
|
3.7
|
3.6
|
|||
Held-to-maturity securities:
|
|||||
Weighted average yield at the respective period end
|
9.72%
|
9.72%
|
|||
As a % of total securities
|
0.1%
|
0.2%
|
|||
Weighted average life (in years)
|
20.8
|
21.3
|
|||
Other short-term investments:
|
|||||
Weighted average yield at the respective period end
|
0.19%
|
-
|
|||
As a % of total securities
|
3.3%
|
-
|
|||
Weighted average life (in years)
|
0.0
|
-
|
June 30, 2009
|
December 31, 2008
|
||||
(unaudited, in thousands)
|
Amount
|
% of Loans
|
Amount
|
% of Loans
|
|
Loans:
(1)
|
|||||
Commercial and industrial
|
$ 472,915
|
13.3%
|
$ 510,902
|
14.2%
|
|
Commercial real estate:
|
|||||
Land and construction
|
246,331
|
6.9%
|
230,865
|
6.4%
|
|
Other
|
1,520,573
|
42.8%
|
1,468,158
|
40.7%
|
|
Residential real estate:
|
|||||
Land and construction
|
15,059
|
0.4%
|
15,896
|
0.4%
|
|
Other
|
757,547
|
21.3%
|
841,103
|
23.3%
|
|
Home equity
|
230,727
|
6.5%
|
217,436
|
6.0%
|
|
Consumer
|
298,302
|
8.4%
|
319,949
|
8.9%
|
|
Total portfolio loans
|
3,541,454
|
99.7%
|
3,604,309
|
99.9%
|
|
Loans held for sale
|
9,223
|
0.3%
|
3,874
|
0.1%
|
|
Total Loans
|
$ 3,550,677
|
100.0%
|
$ 3,608,183
|
100.0%
|
June 30,
|
December 31,
|
||
(unaudited, in thousands)
|
2009
|
2008
|
|
Non-accrual loans:
|
|||
Commercial and industrial
|
$ 8,602
|
$ 5,369
|
|
Commercial real estate
|
48,739
|
25,015
|
|
Residential real estate
|
11,581
|
1,252
|
|
Home equity
|
878
|
72
|
|
Consumer
|
221
|
29
|
|
Total non-accrual loans
|
70,021
|
31,737
|
|
Renegotiated loans:
|
|||
Commercial and industrial
|
717
|
4,559
|
|
Commercial real estate
|
7,568
|
-
|
|
Residential real estate
|
3,211
|
-
|
|
Consumer
|
90
|
-
|
|
Total renegotiated loans
|
11,586
|
4,559
|
|
Total non-performing loans
|
$ 81,607
|
$ 36,296
|
|
Other real estate owned and repossessed assets
|
2,892
|
2,554
|
|
Total non-performing assets
|
$ 84,499
|
$ 38,850
|
|
Non-performing loans/total loans
|
2.30%
|
1.01%
|
|
Non-performing assets/total loans, other real estate and repossessed assets
|
2.38%
|
1.08%
|
June 30,
|
December 31,
|
||
(unaudited, in thousands)
|
2009
|
2008
|
|
Commercial and industrial
|
$ 1,765
|
$ 2,951
|
|
Commercial real estate
|
4,518
|
2,951
|
|
Residential real estate
|
3,173
|
10,799
|
|
Home equity
|
265
|
966
|
|
Consumer
|
442
|
1,143
|
|
Total loans past due 90 days or more
|
$ 10,163
|
$ 18,810
|
|
Loans past due 30-89 days/total loans
|
0.74%
|
0.99%
|
|
Loans past due 90 days or more and accruing/total loans
|
0.29%
|
0.52%
|
For the Six Months Ended
|
|||
|
June 30,
|
June 30,
|
|
(unaudited, dollars in thousands)
|
2009
|
2008
|
|
Beginning balance of allowance for loan losses
|
$ 49,803
|
$ 38,543
|
|
Provision for loan losses
|
19,950
|
10,981
|
|
Charge-offs:
|
|||
Commercial and industrial
|
2,959
|
1,547
|
|
Commercial real estate
|
3,813
|
3,166
|
|
Residential real estate
|
1,308
|
668
|
|
Home equity
|
606
|
503
|
|
Consumer
|
2,903
|
2,962
|
|
Total loan charge-offs
|
11,589
|
8,846
|
|
Deposit account overdrafts
|
530
|
803
|
|
Total loan and deposit account overdraft charge-offs
|
12,119
|
9,649
|
|
Recoveries:
|
|||
Commercial and industrial
|
85
|
394
|
|
Commercial real estate
|
42
|
346
|
|
Residential real estate
|
57
|
34
|
|
Home equity
|
10
|
15
|
|
Consumer
|
556
|
704
|
|
Total loan recoveries
|
750
|
1,493
|
|
Deposit account overdrafts
|
188
|
484
|
|
Total loan and deposit account overdraft recoveries
|
938
|
1,977
|
|
Net loan and deposit account overdraft charge-offs
|
11,181
|
7,672
|
|
Ending balance of allowance for loan losses
|
$ 58,572
|
$ 41,852
|
|
Net charge-offs as a percentage of average total loans:
|
|||
Commercial and industrial
|
1.21%
|
0.47%
|
|
Commercial real estate
|
0.43%
|
0.33%
|
|
Residential real estate
|
0.31%
|
0.13%
|
|
Home equity
|
0.54%
|
0.50%
|
|
Consumer
|
1.53%
|
1.28%
|
|
Total loan charge-offs
|
0.62%
|
0.37%
|
|
Allowance for loan losses as a percentage of total loans
|
1.65%
|
1.15%
|
|
Allowance for loan losses to total non-performing loans
|
0.72x
|
1.41x
|
|
Allowance for loan losses to total non-performing loans and
|
|||
loans past due 90 days or more
|
0.64x
|
0.93x
|
|
Allowance for loan losses to trailing twelve months' net charge-offs
|
2.36x
|
3.28x
|
June 30,
|
Percent of
|
December 31,
|
Percent of
|
||
(unaudited, dollars in thousands)
|
2009
|
Total
|
2008
|
Total
|
|
Commercial and industrial
|
$ 13,512
|
23.1%
|
$ 13,392
|
26.9%
|
|
Commercial real estate
|
31,042
|
53.0%
|
24,723
|
49.6%
|
|
Residential real estate
|
4,462
|
7.6%
|
3,304
|
6.6%
|
|
Home equity
|
2,088
|
3.6%
|
1,371
|
2.8%
|
|
Consumer
|
6,339
|
10.8%
|
5,863
|
11.8%
|
|
Deposit account overdrafts
|
1,129
|
1.9%
|
1,150
|
2.3%
|
|
Total allowance for loan losses
|
$ 58,572
|
100.0%
|
$ 49,803
|
100.0%
|
|
Components of the allowance for loan losses:
|
|||||
General reserves pursuant to SFAS No. 5
|
$ 49,357
|
$ 44,690
|
|||
Specific reserves pursuant to SFAS No. 114
|
9,215
|
5,113
|
|||
Total allowance for loan losses
|
$ 58,572
|
$ 49,803
|
June 30,
|
December 31,
|
||||
(unaudited, dollars in thousands)
|
2009
|
2008
|
$ Change
|
% Change
|
|
Non-interest bearing demand
|
$ 514,427
|
$ 486,752
|
$ 27,675
|
5.7%
|
|
Interest bearing demand
|
458,148
|
429,414
|
28,734
|
6.7%
|
|
Money market
|
661,705
|
479,256
|
182,449
|
38.1%
|
|
Savings deposits
|
484,236
|
423,830
|
60,406
|
14.3%
|
|
Certificates of deposit
|
1,982,007
|
1,684,664
|
297,343
|
17.6%
|
|
Total deposits
|
$ 4,100,523
|
$ 3,503,916
|
$ 596,607
|
17.0%
|
June 30,
|
December 31,
|
||||
(unaudited, dollars in thousands)
|
2009
|
2008
|
$ Change
|
% Change
|
|
Federal Home Loan Bank borrowings
|
$ 580,544
|
$ 596,890
|
$ (16,346)
|
(2.7%)
|
|
Other short-term borrowings
|
227,800
|
297,805
|
(70,005)
|
(23.5%)
|
|
Junior subordinated debt owed to unconsolidated subsidiary trusts
|
111,153
|
111,110
|
43
|
-
|
|
Total borrowings
|
$ 919,497
|
$ 1,005,805
|
$ (86,308)
|
(8.6%)
|
Minimum
|
Well
|
June 30, 2009
|
December 31, 2008
|
|||
(unaudited, dollars in thousands)
|
Value
(1)
|
Capitalized
(2)
|
Amount
|
Ratio
|
Amount
|
Ratio
|
WesBanco, Inc.
|
||||||
Tier 1 Leverage
|
4.00%
(3)
|
N/A
|
$ 480,479
|
8.61%
|
$ 507,075
|
10.27%
|
Tier 1 Capital to Risk-Weighted Assets
|
4.00%
|
6.00%
|
480,479
|
12.18%
|
507,075
|
13.21%
|
Total Capital to Risk-Weighted Assets
|
8.00%
|
10.00%
|
529,927
|
13.43%
|
555,084
|
14.46%
|
WesBanco Bank, Inc.
|
||||||
Tier 1 Leverage
|
4.00%
|
5.00%
|
$ 435,898
|
7.85%
|
$ 456,882
|
9.28%
|
Tier 1 Capital to Risk-Weighted Assets
|
4.00%
|
6.00%
|
435,898
|
11.20%
|
456,882
|
11.99%
|
Total Capital to Risk-Weighted Assets
|
8.00%
|
10.00%
|
484,681
|
12.45%
|
504,557
|
13.24%
|
Immediate Change in
|
Percentage Change in
|
||
Interest Rates
|
Net Interest Income from Base over One Year
|
ALCO
|
|
(basis points)
|
June 30, 2009
|
December 31, 2008
|
Guidelines
|
+300
|
(5.9%)
|
(1.9%)
|
N/A
|
+200
|
(2.7%)
|
(0.5%)
|
- 12.5%
|
+100
|
0.6%
|
0.8%
|
- 5%
|
-100
|
(1.3%)
|
(3.5%)
|
- 5%
|
-200
|
N/A
|
N/A
|
- 12.5%
|
Period
|
Total Number of Shares Purchased
|
Average Price Paid per Share
|
Total Number of Shares Purchased as Part of Publicly Announced Plans
|
Maximum Number of Shares that May Yet Be Purchased Under the Plans
|
Balance at March 31, 2009
|
584,325
|
|||
April 1, 2009 to April 30, 2009
|
||||
Open market repurchases
|
-
|
-
|
-
|
584,325
|
Other transactions (1)
|
32,015
|
$ 23.45
|
N/A
|
N/A
|
May 1, 2009 to May 31, 2009
|
||||
Open market repurchases
|
-
|
-
|
-
|
584,325
|
Other transactions (1)
|
3,381
|
$ 18.02
|
N/A
|
N/A
|
June 1, 2009 to June 31, 2009
|
||||
Open market repurchases
|
-
|
-
|
-
|
584,325
|
Other transactions (1)
|
2,846
|
$ 16.10
|
N/A
|
N/A
|
Second Quarter 2009
|
||||
Open market repurchases
|
-
|
-
|
-
|
584,325
|
Other transactions (1)
|
38,242
|
$ 22.42
|
N/A
|
N/A
|
Total
|
38,242
|
$ 22.42
|
-
|
584,325
|
10.1
|
Form of Executive Compensation Amendment Agreement by and between WesBanco, Inc., WesBanco Bank, Inc., and each of Paul M. Limbert, Robert H. Young, Dennis G. Powell, and Jerome B. Schmitt.
|
10.2
|
Form of Executive Compensation Amendment Agreement by and between WesBanco, Inc., WesBanco Bank, Inc., and R.E. Coffman, Jr.
|
12
|
Statement of Ratios of Earnings to Fixed Charges
|
31.1
|
Chief Executive Officer’s Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
31.2
|
Chief Financial Officer’s Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
32.1
|
Chief Executive Officer’s and Chief Financial Officer’s Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
WESBANCO, INC.
|
||
Date: August 10, 2009
|
/s/ Paul M. Limbert | |
Paul M. Limbert
|
||
President and Chief Executive Officer
|
||
Date: August 10, 2009
|
/s/ Robert H. Young | |
Robert H. Young
|
||
Executive Vice President and Chief Financial Officer
|
||
WESBANCO, INC.
By: ________________________________
Name:
Title:
|
WESBANCO BANK, INC.
By: ________________________________
Name:
Title:
|
________________________________
Name:
|
WESBANCO, INC.
By: ________________________________
Name:
Title:
|
WESBANCO BANK, INC.
By: ________________________________
Name:
Title:
|
________________________________
Name:
|
WESBANCO, INC.
|
|||||||||
Computations of Consolidated Ratios of Earnings to Fixed Charges
|
|||||||||
(Dollars in thousands - unaudited)
|
|||||||||
For the six months
|
For the twelve months | ||||||||
ended June 30,
|
|
ended December 31, | |||||||
2009
|
2008
|
2007
|
2006
|
2005
|
2004
|
||||
Excluding Interest on Deposits:
|
|||||||||
Fixed Charges:
|
|||||||||
Interest Expense (excluding interest on deposits)
|
$ 18,094
|
$ 36,203
|
$ 27,791
|
$ 30,672
|
$ 34,255
|
$ 20,626
|
|||
Interest Factor Within Rent Expense (1)
|
387
|
829
|
777
|
742
|
763
|
545
|
|||
Preferred Stock Dividend (2)
|
2,112
|
293
|
-
|
-
|
-
|
-
|
|||
Total Fixed Charges
|
20,593
|
37,325
|
28,568
|
31,414
|
35,018
|
21,171
|
|||
Earnings:
|
|||||||||
Income before Income Taxes
|
$ 11,947
|
$ 42,610
|
$ 52,690
|
$ 48,298
|
$ 54,479
|
$ 47,158
|
|||
Fixed Charges (excluding preferred dividends)
|
18,481
|
37,032
|
28,568
|
31,414
|
35,018
|
21,171
|
|||
Total Earnings
|
30,428
|
79,642
|
81,258
|
79,712
|
89,497
|
68,329
|
|||
Ratio of Earnings to Fixed Charges, Excluding
|
|||||||||
Interest on Deposits
|
1.48
|
2.13
|
2.84
|
2.54
|
2.56
|
3.23
|
|||
Including Interest on Deposits:
|
|||||||||
Fixed Charges:
|
|||||||||
Interest Expense
|
$ 51,902
|
$ 121,229
|
$ 117,080
|
$ 104,436
|
$ 92,434
|
$ 60,212
|
|||
Interest Factor Within Rent Expense (1)
|
387
|
829
|
777
|
742
|
763
|
545
|
|||
Preferred Stock Dividend (2)
|
2,112
|
293
|
-
|
-
|
-
|
-
|
|||
Total Fixed Charges
|
54,401
|
122,351
|
117,857
|
105,178
|
93,197
|
60,757
|
|||
Earnings:
|
|||||||||
Income Before Income Taxes
|
$ 11,947
|
$ 42,610
|
$ 52,690
|
$ 48,298
|
$ 54,479
|
$ 47,158
|
|||
Fixed Charges (excluding preferred dividends)
|
52,289
|
122,058
|
117,857
|
105,178
|
93,197
|
60,757
|
|||
Total Earnings
|
64,236
|
164,668
|
170,547
|
153,476
|
147,676
|
107,915
|
|||
Ratio of Earnings to Fixed Charges, Including
|
|||||||||
Interest on Deposits
|
1.18
|
1.35
|
1.45
|
1.46
|
1.58
|
1.78
|
|||
(1) The portion of rents shown as representative of the interest factor is one-third of total net operating lease expenses.
|
|||||||||
(2) Represents the dividend accrued on the Series A Preferred Stock for the period ended June 30, 2009.
|
Date: August 10, 2009
|
/s/ Paul M. Limbert | |
Paul M. Limbert
|
||
President and Chief Executive Officer
|
Date: August 10, 2009
|
/s/ Robert H. Young | |
Robert H. Young
|
||
Executive Vice President and Chief Financial Officer
|
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of WesBanco, Inc.
|
Date: August 10, 2009
|
/s/ Paul M. Limbert | |
Paul M. Limbert
|
||
President and Chief Executive Officer
|
||
Date: August 10, 2009
|
/s/ Robert H. Young | |
Robert H. Young
|
||
Executive Vice President and Chief Financial Officer
|
||