Yahoo Finance Wesbanco Inc (WSBC) Q1 2024 Earnings Call Transcript Highlights: Key Financial Metrics and ...
Net Income: $33.2 million for Q1 2024.
Earnings Per Share (EPS): $0.56 diluted per share.
Loan Growth: 9% year over year, 8% quarter over quarter annualized.
Deposit Growth: 5% year over year, 10% quarter over quarter annualized.
Noninterest Income: $30.6 million, up 10.8% from the prior year.
Net Interest Margin: Decreased to 2.92%, down 44 basis points year over year.
Total Assets: $17.8 billion as of March 31, 2024.
Total Deposits: $13.5 billion, up 4.8% from the prior year.
Noninterest Expenses: Decreased by approximately $2 million from Q4 2023.
Commercial Loan Pipeline: Approximately $1.2 billion as of April 15, 2024.
Provision for Credit Losses: $4 million for Q1 2024.
Trust Assets Under Management: Increased to $5.6 billion, up $600 million year over year.
Release Date: April 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: How are you thinking about your growth as it relates to deposits, and how might the loan-deposit ratio shake out going forward? A: Jeff Jackson, President and CEO of WesBanco, noted that they have seen significant deposit growth due to new campaigns and incentives for commercial bankers, as well as the launch of a new consumer checking account. He expects the loan-to-deposit ratio to remain in the high 80s, anticipating strong year in both loan and deposit growth.
Q: Can you clarify your expectations for the net interest margin going forward? A: Jeff Jackson confirmed that they expect the net interest margin to stabilize in the mid to 90s, with an increase anticipated throughout the year. Dan Weiss, CFO, added that this includes a projection of $50 million to $75 million of remix into interest-bearing deposits, which would adjust the non-interest bearing deposits from 29% of total deposits to around 27%.
Q: What level should we expect money market and interest-bearing deposit costs to peak at before we start to see some relief? A: Dan Weiss explained that until rate cuts are seen, there might be continued increases in costs, albeit at a slower rate. He mentioned a potential increase of about seven basis points per month in money market and interest-bearing deposits.
Q: Could you provide more details on the $1.2 billion loan pipeline and expectations for CRE and C&I growth in 2024? A: Jeff Jackson indicated that the current pipeline is approximately 60% CRE and 40% C&I, with a goal to achieve a 50-50 mix. He expects the year might end with a slight bias towards CRE.
Q: What are your capital priorities, and what are your thoughts on potentially buying back shares this year? A: Jeff Jackson outlined that their capital management strategy prioritizes dividends, funding loan growth, M&A, and then buybacks. He mentioned ongoing interest in M&A opportunities, particularly in Tennessee, Virginia, and Ohio, targeting institutions with $2 billion to $5 billion in assets.
Q: Can you discuss the uptick in classified loans and the overall trends in credit quality? A: Jeff Jackson attributed the increase in classified loans primarily to one C&I credit, which they expect to resolve by the end of the second quarter. He reassured that there are no systemic issues in credit quality, which remains strong.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
