West Virginia Banks

Return on assets for West Virginia banks rose to 0.95% in Q1 2026, up 5 basis points from 0.91% in Q4 2025 (quarter-over-quarter stable) and up 22 basis points from 0.74% in Q1 2025 (year-over-year increased). The 0.95% current level sits 24 basis points below the national benchmark of 1.20%. The year-over-year 22-basis-point gain is the largest annual improvement in the series shown, but the quarter-over-quarter 5-basis-point gain is a fraction of the annual pace, signaling deceleration in profitability improvement.

The year-over-year ROA expansion is driven by net interest margin widening and efficiency-ratio compression. Net interest margin increased to 3.79% in Q1 2026, up 9 basis points quarter-over-quarter from 3.70% and up 33 basis points year-over-year from 3.46%. The 3.79% NIM trails the national 3.82% by only 3 basis points, a near-parity position. The efficiency ratio decreased to 68.76% from 69.56% quarter-over-quarter (minus-80 basis points) and from 71.95% year-over-year (minus-3.19 percentage points). The year-over-year 3.19-percentage-point efficiency improvement reflects operating leverage as revenue growth outpaced expense growth. However, the 68.76% efficiency ratio remains 4.62 percentage points above the national 64.14%, indicating West Virginia banks spend $68.76 to generate $100 of revenue versus $64.14 nationally. The NIM expansion is mechanically consistent with the loan-growth acceleration documented in the growth section: loans repriced faster than deposits, widening the spread. Net interest income as a percentage of revenue at 0.14% is 18 basis points below the national 0.32%, suggesting noninterest income (fees, service charges) comprises a larger share of total revenue for West Virginia banks than the national average.

The detected-stories block flags efficiency ratio changing while growth accelerates as a tension point, and highlights a specialization anomaly: Mortgage specialists nationally post an efficiency ratio of 76.96%, 12.81 percentage points above the national 64.14%. West Virginia banks' 68.76% efficiency ratio sits between the national average and the Mortgage specialist outlier. If the efficiency ratio continues to compress at the current quarter-over-quarter pace of minus-80 basis points, West Virginia banks will converge to the national 64.14% by Q3 2026, assuming revenue growth holds.

Asset growth for West Virginia banks measured 4.60% year-over-year in Q1 2026, decelerating by 8.87 percentage points from 5.04% in Q4 2025 (quarter-over-quarter) and accelerating by 67.13 percentage points from 2.75% in Q1 2025 (year-over-year). The 4.60% current pace sits 56 basis points below the national benchmark of 5.15%. The year-over-year acceleration is the strongest in the series shown, but the quarter-over-quarter deceleration marks the first slowdown after consecutive quarters of acceleration.

The year-over-year asset-growth acceleration is mechanically driven by loan growth outpacing deposit growth. Loan growth accelerated to 4.88% year-over-year in Q1 2026 from 2.88% in Q1 2025, a 69.81-percentage-point acceleration. Quarter-over-quarter, loan growth accelerated by 15.06 percentage points from 4.24% to 4.88%. The 4.88% loan growth sits 1.32 percentage points below the national 6.20%. Deposit growth decelerated to 3.77% year-over-year from 3.81% in Q1 2025 (minus-1.05 percentage points) and decelerated quarter-over-quarter by 10.58 percentage points from 4.22% to 3.77%. The 3.77% deposit growth sits 1.25 percentage points below the national 5.02%. The quarter-over-quarter asset-growth deceleration from 5.04% to 4.60% reflects deposit growth slowing faster than loan growth is accelerating on a sequential-quarter basis. The detected-stories block flags deposit growth diverging from loan growth as a tension point: West Virginia banks are extending credit faster than they are gathering deposits, tightening the funding base and compressing the loan-to-deposit ratio by 92 basis points quarter-over-quarter to 78.35%.

The growth trajectory shows year-over-year strength but quarter-over-quarter moderation. Loan growth at 4.88% year-over-year is nearly double the 2.88% pace from a year earlier, but the quarter-over-quarter acceleration of 15.06 percentage points is smaller than the year-over-year acceleration of 69.81 percentage points, indicating the pace of acceleration is slowing. Deposit growth at 3.77% year-over-year is decelerating on both timeframes, and the 1.25-percentage-point gap below the national 5.02% suggests West Virginia banks are losing ground to the national funding-growth pace. If deposit growth continues to decelerate at the current quarter-over-quarter pace of minus-10.58 percentage points while loan growth accelerates at the current pace of plus-15.06 percentage points, the loan-to-deposit ratio will approach 80% by Q2 2026, narrowing the liquidity buffer and potentially constraining future loan growth unless deposit-gathering efforts intensify.

Delinquency for West Virginia banks measured 0.62% in Q1 2026, stable quarter-over-quarter at minus-3 basis points from 0.65% in Q4 2025 and increased year-over-year by 23 basis points from 0.39% in Q1 2025. The 0.62% current level sits 7 basis points below the national benchmark of 0.70%. The year-over-year 23-basis-point increase is the largest annual deterioration in the series shown, marking the first material rise in delinquency after consecutive quarters of low readings below 0.50%.

The year-over-year delinquency increase is consistent with the loan-growth acceleration documented in the growth section: as West Virginia banks extended credit at a 4.88% year-over-year pace (up from 2.88% a year earlier), a portion of the new originations or seasoned portfolio migrated into past-due status. The nonperforming-asset ratio increased to 0.52% in Q1 2026, stable quarter-over-quarter at plus-2 basis points from 0.49% and increased year-over-year by 18 basis points from 0.34%. The 0.52% NPA ratio sits 1 basis point above the national 0.51%. The quarter-over-quarter stability in both delinquency and NPA ratio suggests the deterioration is not accelerating on a sequential-quarter basis, but the year-over-year increases indicate credit quality has weakened materially over the twelve-month window. Tier 1 capital increased to 13.30% in Q1 2026, up 29 basis points quarter-over-quarter from 13.01% and up 7 basis points year-over-year from 13.24%. The 13.30% Tier 1 capital ratio sits 96 basis points below the national 14.26%, indicating West Virginia banks hold a smaller capital cushion relative to risk-weighted assets than the national average.

The detected-stories block flags a specialization anomaly: Credit Card specialists nationally post a delinquency rate of 2.57%, 1.87 percentage points above the national 0.70%. West Virginia banks' 0.62% delinquency sits well below the Credit Card specialist outlier, suggesting the state's banks are not concentrated in high-delinquency specializations. The 96-basis-point Tier 1 capital gap below the national 14.26% is a watch item: if delinquency continues to rise at the current year-over-year pace of plus-23 basis points annually, and if loan growth continues to accelerate, the capital ratio could compress unless earnings retention or capital raises offset the risk-weighted-asset expansion. The quarter-over-quarter 29-basis-point Tier 1 capital increase provides a buffer, but the year-over-year 7-basis-point gain is modest relative to the 69.81-percentage-point loan-growth acceleration over the same period.

West Virginia banks' loan-to-deposit ratio decreased to 78.35% in Q1 2026 from 79.26% in Q4 2025, a decline of 92 basis points quarter-over-quarter. Year-over-year, the ratio increased 95 basis points from 77.40% in Q1 2025. The current 78.35% sits 1.97 percentage points above the national benchmark of 76.38%. The quarter-over-quarter compression marks the first decline in the series shown after consecutive quarterly increases, while the year-over-year expansion reflects stronger loan growth relative to deposit growth over the twelve-month window.

The compression is mechanically driven by divergent funding and lending trajectories. Loan growth accelerated to 4.88% year-over-year in Q1 2026 from 2.88% a year earlier, while deposit growth decelerated to 3.77% from 3.81% over the same period. Quarter-over-quarter, deposit growth decelerated by 10.58 percentage points to 3.77% from 4.22%, while loan growth accelerated by 15.06 percentage points to 4.88% from 4.24%. The quarter-over-quarter deposit deceleration outpaced the loan acceleration, compressing the ratio. Noninterest-bearing deposit share decreased to 25.68% from 26.49% quarter-over-quarter (minus-82 basis points) and from 26.64% year-over-year (minus-97 basis points), indicating depositors are shifting into interest-bearing accounts. West Virginia banks' 25.68% noninterest-bearing share remains 4.08 percentage points above the national 21.60%, suggesting a more stable funding base than the national average. Net interest income as a percentage of revenue decreased sharply to 0.14% from 0.59% quarter-over-quarter (minus-45 basis points) but was stable year-over-year at minus-0.003 percentage points, sitting 18 basis points below the national 0.32%.

The detected-stories block flags deposit growth diverging from loan growth as a tension point. West Virginia banks are extending loans faster than they are gathering deposits, tightening liquidity and pushing the loan-to-deposit ratio above the national average. The 4.08-percentage-point noninterest-bearing share advantage over the national benchmark provides a cushion, but the year-over-year 97-basis-point decline in that share suggests the cushion is eroding. If deposit growth continues to decelerate at the current quarter-over-quarter pace while loan growth accelerates, the loan-to-deposit ratio will approach 80% by Q2 2026, narrowing the liquidity buffer further.