WesBanco(WSBC) - 2024 Q1 - Quarterly Results

Financial Performance - Net income for Q1 2024 was $33.2 million, or $0.56 per diluted share, down from $39.8 million and $0.67 per diluted share in Q1 2023, representing a decrease of 16.4% in net income and 16.4% in earnings per share year-over-year [2][3]. - Net income available to common shareholders decreased by 16.7% to $33,162,000 compared to $39,810,000 in the prior year [21]. - Return on average assets fell to 0.75% from 0.95%, a decline of 21.05% [23]. - Return on average equity decreased to 5.24% from 6.57%, representing a 20.24% drop [23]. - Net income available to common shareholders for Q1 2024 was $33,162,000, compared to $32,437,000 in Q4 2023 [28]. - Basic net income per common share for Q1 2024 was $0.56, consistent with $0.55 in Q4 2023 [28]. Loan and Deposit Growth - Total portfolio loans increased to $11.9 billion, a rise of $1.0 billion or 9.0% year-over-year, with commercial loans at $8.4 billion, up 9.3% year-over-year [5][6]. - Total deposits reached $13.5 billion, reflecting a 4.8% increase year-over-year and a 2.5% increase quarter-over-quarter, with demand deposits comprising 55% of total deposits [6][7]. - Average loans to average deposits ratio improved to 88.67% from 83.46%, an increase of 6.24% [23]. - Interest-bearing demand deposits increased by 13.6% to $3,529,691 compared to $3,107,112 in the previous year [26]. - Portfolio loans, net of unearned income, rose by 9.0% to $11,873,167 from $10,888,688 year-over-year [25]. Income and Expenses - Non-interest income rose to $30.6 million, an increase of 10.8% year-over-year, driven by new commercial loan swap fees and wealth management fees [11]. - Net interest income for Q1 2024 was $114.0 million, down $10.4 million or 8.3% year-over-year, primarily due to rising funding costs [10]. - Non-interest expense, excluding restructuring costs, was $97.2 million, a $4.2 million increase year-over-year but a $2.3 million decrease sequentially [12]. - Total interest and dividend income increased by 21.7% to $195,333,000 compared to $160,555,000 in the previous year [21]. - Total interest expense on deposits surged by 190.0% to $59,618,000 from $20,561,000 [21]. Asset Quality and Capital Ratios - Credit quality metrics remained strong, with non-performing assets at 0.19% of total assets, down 5 basis points year-over-year [8]. - The Tier I leverage ratio was 9.79% and the total risk-based capital ratio was 14.76% as of March 31, 2024, indicating strong regulatory capital ratios [13]. - The allowance for credit losses on loans increased by 8.8% to $129,190 from $118,698 year-over-year [25]. - Total non-performing loans increased to $32,919 thousand in Q1 2024 from $26,808 thousand in Q4 2023, representing a 22.5% increase [30]. - Tier I risk-based capital ratio was 11.87% in Q1 2024, down from 12.05% in Q4 2023 [30]. Other Key Metrics - The net interest margin decreased to 2.92%, down 10 basis points sequentially and 44 basis points year-over-year, attributed to higher deposit costs [9]. - Book value per share increased by 2.4% to $40.30 from $39.34 [21]. - Dividends declared per share rose by 2.9% to $0.36 from $0.35 [21]. - Total assets increased by 2.9% to $17,772,735 compared to $17,274,626 as of December 31, 2023 [25]. - The efficiency ratio for Q1 2024 improved slightly to 66.65% compared to 66.75% in Q4 2023 [34].