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Dec 31, 2023
WesBanco Q4 2023 Earnings Report
Net income decreased due to record interest rate escalation by the Federal Reserve.
Key Takeaways
WesBanco reported a decrease in net income available to common shareholders for Q4 2023 to $32.4 million, with diluted earnings per share of $0.55, compared to $49.7 million and $0.84 per diluted share for Q4 2022. The bank saw deposit and loan growth while maintaining a stable net interest margin.
Deposits increased both year-over-year and sequentially, reflecting deposit gathering and retention efforts across retail and business customers
Total loan growth was 8.7% year-over-year and 2.9% quarter-over-quarter, reflecting the strength of our markets and lending teams
Non-interest income increased 8.0% year-over-year, supported by new commercial loan swap and wealth management fees
Net interest margin of 3.02% was stable to the third quarter of 2023
WesBanco
WesBanco
WesBanco Revenue by Segment
Revenue by Segment
Trust Fees Revenue
CapyFin.comService Charges on Deposits Revenue
CapyFin.comDigital Banking Income Revenue
CapyFin.comNet Securities Brokerage Revenue
CapyFin.comBank-Owned Life Insurance Revenue
CapyFin.comMortgage Banking Income Revenue
CapyFin.comOther Income Revenue
CapyFin.com Forward Guidance
WesBanco remains well-capitalized with solid liquidity and a strong balance sheet to fund loan growth, positioning the company well to continue generating value for its stakeholders.
Positive Outlook
- The company achieved sustained loan, deposit, and fee income growth.
- WesBanco maintained strong capital levels and credit quality.
- The company focused on further diversifying revenue streams with new fee-based services driving positive non-interest income trends.
- WesBanco remains well-capitalized with solid liquidity.
- The company has a strong balance sheet to fund loan growth.
Challenges Ahead
- Record interest rate escalation by the Federal Reserve had a significant impact on all banks, including WesBanco.
- Net interest margin decreased 47 basis points year-over-year primarily due to higher funding costs from increasing deposit costs.
- There continued to be some mix shift in the composition of total deposits.
- Non-interest expense increased $9.0 million year-over-year to $99.5 million.
- Mortgage banking income decreased $2.5 million from the prior year to $2.7 million due to reduced fair value adjustments on mortgage derivatives.