Western Ohio Financial Corporation Announces First Quarter Earnings and Declares Dividend

Western Ohio Financial Corporation Announces First Quarter
Earnings and Declares Dividend 


SPRINGFIELD, Ohio, April 22  /PRNewswire-FirstCall/ -- Western Ohio Financial
Corporation , parent corporation of Cornerstone Bank, Springfield, Ohio, today
announced the Company's first quarter earnings and dividend. A quarterly
dividend of 25 cents per share will be paid on May 31, 2004 to shareholders of
record on May 17, 2004.

Net income for the three months ended March 31, 2004 was $512,000 compared to
$621,000 for the same period in 2003. Net income per share for the three months
ended March 31, 2004 was 28 cents on a fully diluted basis, down 7 cents, or
20%, from 35 cents for the three months ended March 31, 2003. The per share
impact was primarily attributable to the net income decline. The higher average
diluted share count resulting from an unusually high level of stock option
exercises also contributed to the decrease. The decline in the Company's net
income for the first quarter of 2004 from the comparable quarter of 2003 was
primarily attributable to continued margin compression, a decrease in
noninterest income and an increase in noninterest expenses.

Net interest income of $2.5 million for the first quarter ended March 31, 2004
represented an increase of approximately $107,000, or 4.5% above the quarter
ended March 31, 2003. Average earning assets of $376.4 million during the first
quarter of 2004 increased by $51.4 million, or 15.8%, from $325.0 million for
the comparable quarter of 2003. The increased level in earning assets did not
produce a corresponding increase in revenue as the Company continued to
experience margin compression as the net interest margin for the recently
completed quarter amounted to 2.66% versus 2.99% in the first quarter of 2003.
This was due primarily to the high level of refinancing activity in residential
mortgages, supplementing mortgage loan originations with purchased mortgage
loans and the limited ability to lower interest rates on deposit products.

Noninterest income for the quarter ended March 31, 2004 amounted to $723,000,
reflecting a decline of $102,000, or 12.4%, relative to the comparable quarter
of 2003, due to declines in gains on the sale of investments and loans as well
as a decrease in Bank Owned Life Insurance (BOLI) income. Gains on the sale of
investments amounted to approximately $16,000 in the first quarter of 2004
versus approximately $69,000 in the comparable quarter of 2003. Gains on the
sale of loans of approximately $34,000 in the first quarter of 2004 declined by
approximately $52,000 from the first quarter of the previous year due to a
lower level of originations and refinancing activity in the current quarter.
The BOLI income, which is based upon the increase in the cash surrender value
of the life insurance, amounted to approximately $83,000 in the first quarter
of 2004 reflecting a decline of $42,000 from the prior year's first quarter
revenue due to the change from a guaranteed rate from the insurance carriers in
the initial year of the policies to market rates in the current year.

Finally, noninterest expense of $2.4 million for the first quarter of 2004
increased by $123,000, or 5.5%, from $2.2 million in the comparable quarter of
2003. The major expense increases were comprised of an increase in employee
stock ownership plan (ESOP) expense of approximately $40,000 due to a
significantly higher stock price during the first quarter of 2004 and an
increase in loan fees of approximately $44,000 for purchased mortgage loans.
The resulting income from purchased loans more than offset the increased
expense.

John W. Raisbeck, President and Chief Executive Officer stated, "The quarter
reflected continued margin compression, a lower level of fee income and the
higher cost of the ESOP plan. The Company projects that second quarter earnings
will be more in line with historical levels. We still anticipate both net
income and earnings per share for the full year of 2004 to increase above the
levels for 2003. The existing loan balances, projected levels of fee income and
current expense structure all support these higher, yet realistic earnings
levels."

As previously announced on April 1, 2004, the Company has entered into a
definitive Agreement and Plan of Merger with Wesbanco, Inc. ("Wesbanco") of
Wheeling, West Virginia. Under the terms of the Agreement and Plan of Merger,
Wesbanco will exchange a combination of its common stock and cash for the
Company's common stock. The Company's shareholders will be able to elect a
fixed exchange ratio of 1.18 shares of Wesbanco common stock or $35.00 in cash
subject to certain limitations including that 55% of the Company's outstanding
shares be exchanged for Wesbanco common stock. Common stock received by the
Company's shareholders is anticipated to qualify as a tax-free exchange. Based
upon a per share value of $35.00, the transaction is valued at $65.2 million.
The transaction, which is subject to regulatory and the Company's shareholder
approvals, is expected to be completed in the fourth quarter of 2004.

When used in the Company's press releases or other public or shareholder
communications, or in oral statements made with the approval of an authorized
executive officer, the words or phrases "will likely result", "project",
"believe" or similar expressions are intended to identify "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995.  The Company wishes to caution readers not to place undue reliance on
any such forward-looking statements, which speak only as of the date made, and
to advise readers that various factors--including regional and national
economic conditions, changes in levels of market interest rates, credit risks
of lending activities, and competitive and regulatory factors--could affect the
Company's financial performance and could cause the Company's actual results
for future periods to differ materially from those anticipated or projected.

The Company does not undertake--and specifically disclaims any obligation- -to
publicly release the result of any revisions which may be made to any
forward-looking statements to reflect the occurrence of anticipated or
unanticipated events or circumstances after the date of such statements.

                    WESTERN OHIO FINANCIAL CORPORATION
                          COMPARATIVE STATISTICS
               (Dollars in thousands except per share data)

                                          March 31,       December 31,
                                            2004             2003

     Total assets                          $407,486        $ 399,540
     Total loans, net                       337,370          334,469
     Allowance for loan and lease losses      1,856            1,801
     Securities                              35,374           32,735
     Deposits                               257,530          248,681
     Borrowed funds                         101,834          103,473
     Shareholders' equity                    45,334           44,357
     Book value per common share
       outstanding                          $ 25.16          $ 24.92
     Market value per share                 $ 31.48          $ 32.08
     Outstanding shares                   1,801,729        1,779,823


                                             For the Quarter Ended
                                                    March 31,

                                               2004          2003

     Net income                               $ 512            $ 621
     Earnings per share
     Basic                                   $ 0.29           $ 0.36
     Diluted                                 $ 0.28           $ 0.35
     Return on average assets                 0.52%            0.73%
     Return on average equity                 4.55%            5.77%
     Diluted weighted average shares      1,829,064        1,752,716


DATASOURCE: Western Ohio Financial Corporation



CONTACT:  John W. Raisbeck, President and CEO of Western Ohio Financial

Corporation, [phone]

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