Net income available to common shareholders for the quarter ended September 30, 2009 was $2.3 million while diluted earnings per common share were .09, as compared to $11.5 million or .43 per common share for the third quarter of 2008, and $4.7 million or .18 per share in the prior quarter ended June 30, 2009. Earnings per common share in the third quarter included a charge of .09 per common share for the unamortized discount on the repurchase of the Troubled Asset Relief Program ("TARP") preferred stock and an additional .03 per share for preferred stock dividends paid in the third quarter.
For the nine month period, net income available to common shareholders was $11.4 million or .43 per common share, while for the same period in 2008, net income was $32.3 million or $1.22 per common share. Net income before preferred stock dividends and the accounting adjustment for the TARP repayment was $16.6 million year to date.
Highlights for the third quarter and nine months ended September 30, 2009 include the following:
-- Net interest income increased 3.0% in the third quarter as compared to the second quarter of 2009 and 6.0% over the first quarter of 2009 as a result of the acquisition of five former AmTrust Bank branches in the Columbus, Ohio metropolitan area on March 27, 2009. WesBanco purchased approximately $600 million of deposits for a total price of $21.1 million and is now operating the acquired branches under the WesBanco Bank name. Also contributing to improved net interest income were lower rates on interest bearing liabilities, particularly for deposits, as a result of decreasing market interest rates, certificate of deposit maturities and WesBanco's focus on improving the net interest margin by reducing higher cost funding sources.
Highlights for the third quarter and nine months ended September 30, 2009 include the following:
-- Net interest income increased 3.0% in the third quarter as compared to the second quarter of 2009 and 6.0% over the first quarter of 2009 as a result of the acquisition of five former AmTrust Bank branches in the Columbus, Ohio metropolitan area on March 27, 2009. WesBanco purchased approximately $600 million of deposits for a total price of $21.1 million and is now operating the acquired branches under the WesBanco Bank name. Also contributing to improved net interest income were lower rates on interest bearing liabilities, particularly for deposits, as a result of decreasing market interest rates, certificate of deposit maturities and WesBanco's focus on improving the net interest margin by reducing higher cost funding sources.
-- The provision for credit losses in the third quarter of 2009 increased $9.7 million from the third quarter of 2008. The higher provision expense reflects increased loan charge-offs of $14.0 million. During the quarter WesBanco charged-down two commercial loans by $8.5 million, with $2.0 million of this charge reserved for in the second quarter. One of the charge-offs was caused by a fraudulent equipment leasing scheme which impacted a borrower's equipment leasing activities, and the other loss was on a hotel which was previously identified as impaired. Higher provision expense also reflects the general deterioration of credit quality across all segments of the loan portfolio due to the prolonged recession, which has caused increases in net charge-offs and non-performing assets. The allowance for loan losses increased to 1.74% of total loans at September 30, 2009 as compared to 1.21% at September 30, 2008, and 1.65% at the end of the second quarter.
-- On September 9, 2009 WesBanco repurchased from the U.S. Department of the Treasury 75,000 shares of the Company's Fixed Rate Cumulative Perpetual Preferred Stock, Series A, issued under the TARP program, at a purchase price of $75 million plus a final accrued dividend of $250,000. The funds used to redeem the preferred stock were derived from security sales and other internal sources, including a special dividend from the bank paid during the quarter that was previously approved by the bank's regulators. The repurchase of the preferred stock resulted in WesBanco recording a $2.3 million charge in the third quarter representing the unamortized discount on the preferred stock, as well as certain unamortized issuance costs. These charges are reflected on the income statement after net income. WesBanco received approval from regulatory authorities and the U.S. Treasury to redeem the preferred stock. WesBanco's consolidated and bank subsidiary capital ratios continue to be in excess of the "well capitalized" benchmarks for regulatory purposes at September 30, 2009 after repurchase of the preferred stock. WesBanco also issued a warrant to the Treasury Department with the preferred stock in December 2008 and is currently negotiating terms for the repurchase of this warrant.
WesBanco is a multi-state bank holding company with total assets of approximately $5.6 billion, operating through 114 branch locations and 138 ATMs in West Virginia, Ohio, and Pennsylvania. WesBanco's banking subsidiary is WesBanco Bank, Inc., headquartered in Wheeling, West Virginia. WesBanco also operates an insurance brokerage company, WesBanco Insurance Services, Inc., and a full service broker/dealer, WesBanco Securities, Inc.
WesBanco is a multi-state bank holding company with total assets of approximately $5.6 billion, operating through 114 branch locations and 138 ATMs in West Virginia, Ohio, and Pennsylvania. WesBanco's banking subsidiary is WesBanco Bank, Inc., headquartered in Wheeling, West Virginia. WesBanco also operates an insurance brokerage company, WesBanco Insurance Services, Inc., and a full service broker/dealer, WesBanco Securities, Inc.
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