WesBanco halves dividend to preserve cash

WesBanco cuts dividend in half to preserve cash; says it remains well-capitalized

• On 6:05 pm EDT, Thursday August 27, 2009

WHEELING, W.Va. (AP) -- Bank holding company WesBanco said on Thursday that it cut its quarterly dividend in half, to 14 cents per share, compared with the previous quarter.

The dividend will be paid Oct. 1 to shareholders of record of Sept. 11.

The dividend was reduced "to address the impact of the recession on earnings and to increase capital internally," the company said. It said it remains well-capitalized.

The company said it paid dividends higher than its profit for the past three quarters.

"While maintenance of the dividend is important to us and our shareholders, it is equally important to the long-term growth of our company to ensure that the dividend payout ratio bears a reasonable relationship to earnings," CEO Paul Limbert said.

WesBanco shares fell 38 cents, or 2.3 percent, to close at $15.95 before the smaller dividend was announced.