WSBC - Earnings call transcript Q3 2017

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Operator

Good morning and welcome to the WesBanco Third Quarter 2017 Earnings Conference Call. All participants will be in listen only mode. [Operator Instructions] After today's presentation there'll be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. At this time, I would like to turn the conference over to John Iannone, Vice President of Investor Relations. sir. ahead, go Please

John Iannone

Good earnings welcome conference Denise. third WesBanco quarter XXXX call. morning you, to and Inc.’s Thank

Our third was Vice Young, quarter www.wesbanco.com. President financial Officer. and highlights and XXXX Financial available President Leading earnings release, reconciliations is Officer are non-GAAP and which the of Chief call Chief financial Todd our Executive Executive measures on issued today afternoon and yesterday website, contains Clossin, consolidated Bob and

call will opening An this Following we archive for website a will available session. question-and-answer be one remarks, begin our on of year.

in expectations, to are Form provisions Forward-looking from to not update statements materially as made XA. of does Risk results duty the subject and to to which and March historical with this subsequently report Commission, on The contemplated and as are statements. under which ended differ factors Securities pursuant for be Todd? WesBanco Item forward-looking websites. year important this XX, Form fact are XX-K filed most report XXXX, statements Form conjunction available Act could contained ended in on cautioned detailed statements, are Such the filed forward-looking the of WesBanco involve Exchange Part in any XXXX actual WesBanco’s Factors the report SEC the quarters relating Investors read risks XX, in plans, those uncertainties, resources that annual that cause including SEC WesBanco’s well in by are should assume X, statements. XX-K Reform WesBanco not June recent for the Securities Harbor those and with and XX-Q with strategies, objectives, XXXX. documents Litigation intentions by to Private Safe the and WesBanco’s of XXst adequacy December information such

Todd Clossin

continue months XX measures to Good driven the be strength focus progress of expense operating make and we've strategies, quarter in our we you, categories, loan takeaways quality, for quarter profitability operational management long for XXXX. term from demonstrated and our Key On will positioned today’s strategic environment. we and was on type of reviewing our everyone. call, the by and are, Thank any John. the growth morning, results third past strong continued we're well success over credit growth

we the September For $XX income three $X.XX of of on period diluted earnings per of share for income nine-month months diluted $X.XX the ended share fully XXth of on earnings earned earned net million. million, fully per $XX we net

solid X.XX% average returns tangible by assets respectively. equity on average We demonstrated continue as returns generate and of to and XX.XX%

well regulatory bank addition, III capital well consolidated standards In regulators above standards. are by level the our and and the applicable capitalized ratios bank Basel capital promulgated

on related strategies while as and services, with national as reflecting as healthcare pessimistic franchise. with and make stated higher evidence well our a of others growth emphasis Our high long-term deriving growth on is commercial banking over strategies, distinction, loan maintaining up generating time, five growing was refinancing our credit is focus driven key leverage percentage in high increasing net environment trends categories being positive quality reform. by business is we and the which mid-single-digit standards, X.X%. an industry industrial options particular our realized lending total retail portfolio to commercial focused was until of operating tax loans and fee more income and our see developers in home portfolios advantage customer continue being as our to third investments strategic as to are cautious, offered. to to capital of loan quarter and we the loan expanding to going the mortgage key secondary certainty anecdotal quarter impact as Total second loan sooner and X.X% from for compared year-over-year the consumer the Recent residential waiting companies and growth payoffs our in Overall as comments the aggressive well there equity that market the shown desired of not a regards have X.X% take loans growth to revenues

diversify we our we any our portfolio. credit opportunities of not remain in national the deterioration our the loan similar on growth overall optimistic and While compared slowdown That recent have our we've as in quality continue seeing markets a said to we seen of any markets in loan to strengthen trends.

home and C&I focus and lending equity to continues provide diversification. Our gain traction

our management the reduce of to overall through continue risk portfolio. We consumer appropriate

and are we mentioned risk of of to their loan last portfolio about network expanded example the this prospects declined product has XX% building of portfolio begun upon to Indiana the consumer we year focus now as nice profile in existing risk the already by they've our of our to financial business. of capital traction book their approximately loan which Southern targeted markets X% total of portfolio allocating our manage home of through and We've continued opportunity the show half the in loans. to first reduce to our excited year-over-year the areas. our Kentucky utilization An Furthermore, to is represent in continue during quarter have reductions set and product. I As our the our return equity our lending of support highest team

points past intentionally discipline have portfolios, We retail and issues growth we by This discipline the the will of our to to chasing up hotel as markets. remain credit of exposures across measures, strength reflected our within addition relaxed our is energy we're percentage standards few in our not concentration give prudently maintain our overall managing loan concerns growth of or we related, credit quality minimal. loan seeing a continue no in continue and

become As is expenses long-term management. we ratio and efficiency organization invest believe larger of on revenue the best we which balanced and we growth to disciplined focused expense demonstrating remain maintaining the strong measure a

and for of years. asset from we're next new fluctuate to control in complete mid working make hires might markets to expenses discretionary about ratio which producing two revenue crossing the one through preparations the quarter XX% couple it maintained $XX efficiency for threshold the billion we've our associated cost. as we in of last While thirds We're the range our the

Regarding our preparations billion previously communicated $XX for there're changes threshold no plans. the to asset

to methodically infrastructure necessary the continue CRA We prepared staffing, perspective. and investments we're and make development a feel that from

loan to While we're expect to over tomorrow the cross threshold sometime years growth. having next we ready to without to two the constrain that occur one

or franchise to a to small to preference transaction. cross several billion-dollar asset remains combination a via of it through deals drive Our several is time acquisition five enhancing headquarters, six-hour our of WHEELING within a larger midsized

positioned of type products We've an environment. right well remains for success for expansion. WesBanco across the geographies any in during economic Finally, our growth operating and teams

financial to credit sensitive an now however Young, risk call curve downturn, key disciplined expense our the expenses. us Bob? our management and believe offer, strong deposit approach of our balance Chief remain we're Our manage if we've benefit Officer credit would from firmly for to long-term update funding turn over advantage through we to WesBanco. that and and quality, services I will quarter's insulate the yield continues legacy to results. in are for products sheet, like Bob We our rates help our management differentiators third Financial on core positioned our asset rising demonstrated discretionary quality flat a to to interest ability

Bob Young

and good in larger continued discretionary strategic company. Todd morning. to loan we investments planned quarter leverage and categories focus our in this operating growth strong Thanks becoming generated generate costs positive managed We as our a

expenses. XX.X income September nine $X.XX we months ended of net For XXth million merger reported diluted related of share of the earnings per and net

from these average periods share assets return have tangible both average for from was on was XX.X% XX.X with XX.X to periods. $X.XX Year-to-date both increased per X.XX% diluted while on million XX.XX%. equity income Excluding expenses million would net the earnings return of

and the three prior For the would were September to share in respectively $X.XX income earnings related compared ended net period of reported XXXX the When per million share XX.X% diluted year as earnings year. we net per XX.X $X.XX increased XX, of and expenses same. in the have excluding merger million diluted months prior and income XX.X

respectively. the results of focus on exclude third and on quarter's related and comments also tangible in earnings, return X.XX% quarter WesBanco's included merger-related consummation remaining were For the of on otherwise impact XXXX, year my reminder and and assets third the in expenses been will Community Unless return X, the average the the results September prior And a financial as XX.XX% since results period. average restructuring equity financial have for merger. Bancshares of stated date Your

reduce loan assets our the as portfolio total Turning increasing increased Year-over-year XX, strategic September portfolio loan in loans balance as X.X% mid-single-digit loan This in billion. X.X%, loans driven as offset total risk its X.X billion categories and total growth targeted well XXXX, profile commercial to sheet consumer sales residential to more equity grew of X.X%. was portfolio. year-over-year we reductions as X.X market secondary the the its loans grew by estate home growth focus total real than to as the increase

to of residential of have mid-single-digits the year-over-year originations has higher and gain XX.X% originations year-over-year. sale the these producing increased we was year-to-date on in our market increased a continued up secondary Regarding and estate, which selling real mortgage in have benefit approach percentage income it the

credit in we Our without encourage our year-over-year our standards. success portfolios the growth our as manage loan of growth to categories loan prudently commitment company demonstrates sacrificing our long-term to focus

margin to interest earning growth. net and increased on both and YCB acquired CDs reflecting primarily points net continued non-interest-bearing increases to rate billion increase our liabilities by total interest year-over-year on that of demand deposit. increased total bearing for believe now in supporting provide at XX.X% and liquidity growth. increase combined in includes and the year-over-year that basis to deposit interest as turn size of to XX.X% increased total continue earning Lastly continued total a to XX% core to basis the bearing assets. as helping XX interest represent interest offsetting from supported X.X X.X% deposits from year-over-year manage our the [indiscernible] the well continues average deposits as assets which a points due was funding borrowings size sequentially points year the months due us basis as quarter When income only in acquired category offset XX% portfolio is bearing eight advantage total on increased both deposit non-interest-bearing demand balance in The average XX.X% interest-bearing growth to in trust increase Total and margin, over and targeted quarter net three full of up earning XX compared third a near-term deposits. demand interest margin. benefit sheet, federal assets periods. nine the was were loan the non-interest-bearing net at deposits funding deposits XX deposits XXth higher than points costs now Fed's five deposits targeted for and in XX.X provide respectively X.X% rates to yield in in net YCB's the deposits of September were a securities. reductions deferred assets and for year-over-year the the basis on year income contain deposits with last growth overall our the excluding XX.X% funds past I'll Yields higher to of assets and flexibility more increase loan to loans million and current funds The the securities our public from We year-over-year interest growth for which as the

a year. the points points from second eight basis accretion and included loan points related approximate quarter the basis YCB return to points prior quarter the of a benefit with XX XX during an to acquisitions mark as million level six realized basis assigned. consistent The currently $X.X quarter's During with accretion anticipate performance. the prior compared to year this an prior more specific acquired we basis We payoff from of loan third in acquisition

certain net year this due owned to year the net For quarter gains of commercial owned primary real the on swap minimal XX.X estate million. X.X of income, quarter bank ended prior other a drivers other customer real in were decreased The the a of property. from loss decrease prior decline slightly owned the other securities million year's non-interest to higher estate income from including and September income liquidation related XX, loan and the XXXX

income net for of gain or in quarter X.X% net impact of increased gains X non-interest both assets the and million year-over-year. other on third or Excluding have would periods loss securities the XXXX

net a the our resulted in mortgage gains increase XX.X% mortgage million on As loans. strategy higher I to mentioned to of $X.X a sell sales percentage in originations residential secondary market in of

I'll the higher Indiana asset average long-term we ratio. maintaining customer operating banking from billion and fees reflect $XX addition for and our In a made addition, larger preparation investments to including electronic a Kentucky focused base the markets. costs remained appropriate the deposit a service of and for as threshold new on we year-over-year expenses, the efficiency turn discretionary strong growth

As of XXXX, and September ratios efficiency reported and three XX.XX% XX.XX% respectively. XX, we nine-month of

efficiency maintained line ratio year-over-year for our to items compensation reflect all and having despite for of annual due individual Kentucky been and Indiana adjustments on impacted due an Salaries excellent We expense have the basis the quarter employees. wages most addition YCB's markets. the third a of

nine-month XX billion from year banks year-over-year category most reflected scheduled both improved threshold. and opportunities in acquisition factors. the as hires from for Kentucky, of management in as quarterly and run YCB in this preparations note decrease the the well three is billion producing in [indiscernible] the for risk asset revenue to the growth the expenses. point additional under expense changes Indiana our current for rate Some cost are wealth related and At periods, and rates of the FDIC lending savings $XX in

and Turning and reflective overall credit credit now asset capital, our our of be is and legacy management. to continues quality quality to risk strong of

total XX increased a whose to loan allowance for XX as improved September in basis September points as ago XXth total loans points compared basis credit for XX, the the to percentage classified primarily reflects million period. $X.X points YCB The are the assets loans while to assets a as portfolio basis The year total points period total to XX slightly for to date represented XX losses from XXXX acquisition XXXX loan compared percentage acquisitions transfer allowance of provision loans, the offs of quarter in to nonperforming year-to-date of just growth. average of mark-to-market of loan as in last XX loans losses of XXXX, points Net and total to they year. points last loans due basis year $X.X a of compared year-over-year at XX XX were of As were X.XX% with increased losses. of charge and basis loans at ESP basis basis quarter percentage XX loans as of slightly points. nonperforming third improved third points the while criticizing portfolio year-over-year it And no to basis acquisition date for million the

on your for thoughts I provide would call the opening questions, for Before like to the current outlook of our quarter last some XXXX.

points XXX year is from our asset planning growth. We are and yield December, lower few spread years are past to for increase XXXX. general our sensitivity, that in flatter modelling will Despite XX-year rate we it of as we the XX is such Lower points ratio at fact, end that to margins not and discretionary industry remember despite treasury funds experience than roughly projections to continue the appropriately late [pertaining] macro-economic in efficiency result target compared interest immune basis last additional investments curve our XX strong the our has fed we necessary quarter future balance and basis control as exhibit spreads over modeling important basis the over months factors. two points expenses to The utilizing become one year. however around to generally

the questions. to please would ready you now We’re your take Operator review instructions.

Operator

of go from happy Russell D.A. be [Operator ahead. Davidson. And first come question the would sir. Instructions]. will Please I to Gunther

Russell Gunther

the just bit get quarter on to this the pipeline play, the be your would loan just of morning. a what sense looks how a out good at quarter performance the dynamics growth third front, and going Hey we could Wondering C&I in of better forward? to coming particularly dig little if outlook the

Todd Clossin

been month that two. Yeah, holding low and think perspective, since in from I did little or has rebounded a we last recently a bit see a mid-summer, the pipeline point the

seeing I doing seeing trends feel similar making to think we’re that think the to calls, we about to us they’re in the good I earnings very do. they’re we’re to before some I similar investment commercial the they’re is calls things some that similar the of that have, also got of trends. we’ve need they think national I bankers, and what the teams there, look

C&I have cautious. little them causing We’re just the who seeing to healthcare reluctance and else of specifically a everything our number on real that’s customer general borrow others you well to. about part to money base to around I uncertainty be and of about a as talked calls customers heard spoken taxes,

during see the that’s but the down of of like the at shrunk in bucket So, emphasized, I doubling line which loans. this little point with X% when time. then auto, That’s last And we a that auto, by have indirect areas some year over to growth of liked at with XX% falling would we grew, some feel national quarter portfolio didn’t look we’re trends. the around just I C&I total [indiscernible] by in right more the about think is other us to our impacted be that of kind I

this and multi-family over if reduction our gives So, C&I, about that if that, at the going from year-over-year is good be it I to range so up a now, and If consumer four, to market a we're on we've, growing grown don't indirect able the in on not be still we teams the had where we're out there, that's side. year-over-year back know had sure be mid-single-digit give that’s to feel auto of just is indirect back growth, the in faster multi-family is think question scaled would that the lot good you the initial with to what think to reason about faster to some we five, look we'd on risk over just at, have X% the getting of upon that’s basically loan been X.X% return market whatever not capitalize there. quarter-to-quarter based we'll right us, but in on us up uncertainty

Russell Gunther

second impacting And the conversations guidepost maybe and M&A anecdotally those you as you're seeing then all of you're loan those just your discussions whether similar just on growth, are uncertainty interested, is on where that's M&A would question more and about well? be, pace and or curious organic what touched at pickup my weighing

Todd Clossin

are what's calls had conversations has happen with going calls that's couple might as some be and the years I on and curve in versus it the the with to the transaction community from so conversations the the No of look last weeks over actually people we sure with was taxation, robust pretty couple sure where know have number years lot and in doing strong I the I few that we and banks. currency might some smaller to out continues, increase at there to all at going in is just increased, uncertainty thought with since potential healthcare, even are going topic been some getting the if I'm yield it's from there's to contemplating with made opportunities smaller terms their ago uncertainty now conversations I wondering they've level been pace banks the me future, of of like bankers not of increased, context of that sure is that think have the that pace where what's couple next think looking probably the what's a level been of years going and of to of of community is happen that last of of not what aren't happen the think a the

Operator

And question Steve come of go FBR. the Moss Please next will from ahead.

Unidentified Analyst

[Kyle Good Peterson] actually morning today. for guys, Steve it's on

markets certainly wonder of that what we are some area, lighter trust kind guys could added outlook revenues? the Just about in up hires can if than on wondering the of and looking of bit of fee new that little the little talk on some trust start we start with could new we a to being you to of if for, these kind the kind expect income, looked when a

Todd Clossin

trust talk Maybe about I'll new the about markets trends. the let and Bob fee talk

Bob Young

accrued the you an Those million had above fee quarter. normalize of we note state compared trust would million the as quarter I have third as the trends, and X.X note $X,XXX, you was the of their this you'd year-over-year it there, On to your adjustment end primarily months slightly the factors and two that over now at quarter the after I would quarter you just that look the if a for a but about would X% two the higher about quarter, adjustment edge and to closer amount at trust running was have rate that as take X% X.X the due was in factors. quarter. to would second that in that those as we then fee six also had the be would've impact second growth at so fees same amount the did second would

Todd Clossin

continued and and to Lexington bankers, process as particularly right added that investments area securities it the Your well Indiana, the license the through Kentucky, in now. private area the reps we’ve several we the call of market are as franchise Southern [indiscernible] former Community six KSI Bank make licensing going We've

brokers person and are last both reps board or in a I think have hired a two trust soon. trust actually four and will development manager here new also licensed market portfolio XX on we’re within other licensed, the be markets well. there of to the in in come is business We’ve days working them different they to that several market there, on the as XXX security

of all XXX the been well it’s up pretty that to staffing that, on we’re XX complete last stages in actually days. on various in up in So, staffing but

future see the So, in should that of through we roll benefit quarters.

Unidentified Analyst

and and the and Okay, is cool know stuff. I that’s margin, moving some shift I helpful. accretion kind on guess bit make pieces little there of a

those down, to are are wanted of loan in Just strip kind without you trends core of seeing where and pricing going guys rate yields kind any what trends, hikes? see

Todd Clossin

we net basis XX versus interest eight quarter. terms first announced last to In the accretion of margin, points related

So, in rate trend to increases various December points. in first and they additional repricing then the three XX to attribute and two be the related two We to first was were up two quarters June. in to point in the the basis that basis March portfolios

So, if you going on a accretion. in you the six look be and to third quarter people day one basis second basis the would called points that you’re flat basis, at it of have the or quarter two and count, some normalize about terms between trend to forward points. back eight The

that one In terms two here funds of expecting still year, two will produce continue with data, in rate federal kind our there margin we’re probably that couple we year. that basis quarterly see higher right, that quarter, we earlier of deposit our to increases that have little next had a December in bit currently in points outlook, to see we and talked increase model we this that of this and make one about additional Yes, a or difference. are didn’t you seemed

where fourth here kind lands the but in So, a we’ll of see that contour. that quarter,

going the margin interest net not a increase forward. in to see significant You’re going

that just contour discussed. I the So,

Unidentified Analyst

of So, Was some with we closer future bps way low that are three looking to curve hikes? the kind I further end guess to two steepening look at like without or more it? yield of

Todd Clossin

shall three or but or one to but we two more think I whether see two Yeah, yeah. its

Bob Young

the figure a funding get deposits rates monthly about things start of on a Marcellus the it's hypothesis rise that bit no eight has that. lag talked that now to too, of cost take to and my pretty last basis, core advantage little organization Urica cost that in we be to of of shale are here or up the the that low add we because starting rates that’s years been chance a as real to and to one have rolling into go a quickly I ought able that that to just deposits advantage and is couple in see coming how out we'll plays I’ll

forward. be materialize trend see regular that, and got to of franchise basis in going the a from these that that liquidity I think continues from we a I and checks on nice deposit starting that hope we’re homeowners to and and of numbers to start are it's quarterly some type are base checks have into but and a XX, XX, quite have not kinds getting But gas XX-year and coming while, funding advantage where a core be still deposits lifespan nice we're these companies well. the in should challenge loan so to these in loan and a of ratio we XX% deposit to coming our it's for are bank to deposit as

Operator

The Instructions]. Inc. of next Austin question will Stephens come Nicholas ahead. from [Operator Please go

Austin Nicholas

it that marketing of $XX touched your of markets new hires the of I and we expenses about around the are on couple next look over the quarters two the expenses about expense? just Maybe also eight run how should of thirds in some on at know think billion line the we kind in the given volatility then rate, I as

Todd Clossin

pretty the people billion. XX in to to pretty well On there one that people but the low did been of we need number, revalidate Maybe staffing in cross side and two or to we're the for a it, go with we've have back last it’s couple investing place years. of regard I on is people with like but done. we're we piece, along two roughly but thirds project the what's remaining the we're way the that that got is of the through it that just the in process, software two team, part to finalize most and expenditures part for of management and thirds our somethings

to months to where much we've in of between to that to we ended I the second to second first and third midpoint we getting quarters, roll forward but On to expenses stringent will the the looking timing, on as going you quarter, the side, marketing you be wanted so big the but thought expense on quarter the delta at in side in and the we're had the taking we historic the that a might at the to for was continue the saw a but lower six we're marketing expected came marketing pretty spend we shift we pretty year remember, we going all marketing quarter higher think where we and be about the due look first forward. first much up the we're than had and disciplined continue return about had marketing that

Austin Nicholas

to slightly say So, lower maybe would potentially fair it marketing in on full year a that 'XX? basis

Todd Clossin

I 'XX wouldn't we probably see an for the the at bit, as far YCB, run a expenses dramatic be of down the a see a rate so on onboard have increased on As all 'XX, marketing. similar would size to expansion full would 'XX, little right, so in to I franchise, similar year

Austin Nicholas

then basis, like you on was were to nice that deposits up and mentioned side annualized number? the XX% shale helping the inflows what it And saw call that, you close it still non-interest-bearing I some quarterly that shale on kind deposits of the drove deposit looks guess

Todd Clossin

into to a tends couple hope nicely figure it of of point move to range the we and bit, little good of the Yes, hopped figures a it. the that to numbers it been and low summer little the ago, six, year at around is but a figures a but was price in last kind trend eight-figure eight has have continues bit back back it around that of gas driving months portion eight so, it the the the seven its moved range, little low range, up and of kind natural seven bit, ago follows a months

Bob Young

we’ve but in although is the public for the Some months. well as as funds nine as consumer said as well categories in seasonality demand public nice interest-bearing of the first public funds the are most that part funds, deposit had growth in both category on Todd

Todd Clossin

well campaigns And marketing on spend franchise, some was to across around related to the of as drive deposits that’s to franchise attract check-in that’s part that the not trying accounts just shale the of in sell areas. entire

Austin Nicholas

what on different I your deposit of just briefly this mentioned then have deposit maybe you And beta, it kind but touched just quarter. know seen or you specifically on products across maybe Understood. betas briefly the more

Bob Young

for bit There most year-over-year. as whether said a market a end income XX in low I as Todd XX-basis past the has that basis related. its what I’ve rate we’ve four us, XX% offsetting compared on rate point still public but a part category to higher demand most in that more and you two with deposit up statement increase would on and or is category see top points increases other in to side. also bulk increase. another, stack likely you one the quarter Well you are the as think or see iteratively non-interest-bearing three that’s the the can per the we’re But money the is increases in be releases to you that little and looked funds know the today, for category it's as on interest-bearing on the growth of a percentage That’s is some as of

bearing interest there borrowings on strategic bit maturities interest-bearing the funds cost those We’re nature. that controlled seeing run-off the bit, well see you that’s you fed as off know costs increase roll there well. of would CD side, and go as and through Little a demand little some in you as then expect

helps So, or that not? you I’m sure if not

Austin Nicholas

run-off emphasizing. helpful. growth quarter some That’s then quick on of real in And terms loan back-out noise this I maybe guess strategic that’s we finally of and just some if

from know given balances any seen so we what period range think decline just the third I far. You maybe quarter, and on kind we’ve next in upon in and results you about here, quarter of sense as would based that just the should expect the end expect growth

Todd Clossin

On it because third a towards some particularly and the a the saw previous at look commercial the of and around maturity in we market it's number bounces secondary markets. end hard because third taking quarter loans number to to that stabilized in really quarter real estate of of quarters was refinancings secondary the into that have hefty I’ve the mentioned large that the come of quarter-to-quarter come

for out projected we customers that dynamics secondary is. stabilization rates aggressive how pay-off upon have So, a market lot the a that based market scheduled and goes but and moves around

accelerate loans impact So the billion and time, XX in big those or two delayed by $XX and move million from a some three get can quarter-to-quarter. with three a things months have or can some at $X to four portfolio,

for a down like at look that, look and it able gives to areas So, like the anticipate focus commercial real I those on the it's to markets and just with what’s at trends breaking tend really feel be to better and me why under to that’s going hard then year-over-year because and that into C&I estate.

would You go type on dramatically concentrations real the into balance that product when loan enough better why quarter-to-quarter like things lending to C&I know is estate would you drive probably look that years up, does would energy ago, the a -- the know the know happen C&I to the so a at there, multi-family C&I we is start and estate really which team the quarter and we know timing it when choose some next because to what at look the average fourth customers what's over to looks I an I kind market the the them year-over-year with basis to happens way doesn't secondary that, trigger. beyond on going do not that's you go the couple greater, try don't with that's secondary do so, I know look don't quarters of timing. any the market to quarters but market, to part at a big rates putting -- to for the we and analyze to is going and lot but some rates and with estate it of portfolio better to that’s and kind is it saw of investments slow in the focus a our of market quarters of the what around three real put it, significantly little I versus building whole but giving quarter has the they and I'm answer, growth the or effort when four those secondary go pull down, the of our point -- move of sheet, it, the going real it the really or take try

Operator

Instructions] question of ahead. Daniel Cardenas James. go next Raymond will [Operator from Your come Please

Daniel Cardenas

side questions better my loan maybe areas on mean than geographically, been Most asked growth you're your growth of there terms loan answered showing greater and pricing are any competition perhaps in and maybe that then are just I seeing than perhaps others of any are there deposit but that footprint and have areas the of deposit pricing others? pressure

Todd Clossin

that side the to market on I can't lot growth think differently. point loan a is operating I any

we're that real from can't markets. the particular here. growth we're in of some I we're urban go from from where customers some same of other seeing But being multi-family point little was that's different markets come conservative activity office, more some a so, that perspective think projects tenant of real decent they of variety market, a because an financing, of single we're activity a about estate but in and saw] slowed, our emphasizing some much that's still the kind being of across some anyone as about come [I estate all seeing I a of happening the that organization, seeing commercial not view lot the type I've the markets, some have had all definitely we're as C&I done where

maybe legacy mentioned a terms that shale share, place, the we've some to of as perspective is position newer the to growth get I big pretty Marcellus pretty bigger XX and market core good and place. have the it's got drive price we're those be the markets, things markets, of share yet urban share because our at flows out years top kind in to side, up market deposit market some that in markets lending from a lower of benefit the of rates fortunately CDs where tend with urban to some couple which market that, deposit we've way our working deposit capitalizing a of of Utica the those bigger we and we are need deposit you get out got the within the in of of we look of and we're branch where us that areas metro right teams don't in go XX, for in last on us XX-XX that's deposit hour markets some in balances, don't big like our share, branches in the On at been if but nice top that some

of plan in markets in So, the some generate more continued and urban markets. -- the really legacy plan have the deposits to higher is the growth loan

WHEELING, I of do loan are sitting to would having able market something or Lexington to market cost on a that in up just legacy without we we basis the money the Columbus the back markets. in like CD we're but I'm have get bigger overall on think growth Now banks other in deposit were like deposit rates some little get to in new of those markets that some or if pay growth and we rates we an do growth that in markets urban the markets where lower lend in the in on now and capitalize or -- necessarily that those which face out

Operator

the additional in I’m questions Instructions]. [Operator showing queue. And no

the comments. over closing question-and-answer I hand for back any Todd to conference like We to session. the will conclude would Clossin

Todd Clossin

this you Great, time for thank thank all you. And morning. of your

focus strategies to operational continue gross continue We’re on make on to progress strong maintain sure we financial going the that that make and a institution. we to strong and

looking again shareholder We’re we’ll long-term and chance and you to for with hopefully being for see at growth a want for Thank I us you. thank good event. get to prospects our upcoming shareholders today an you

Operator

Ladies and your lines. concluded. this the you Thank attending presentation. disconnect time, you conference gentlemen has now today’s for At may

WesBanco (WSBC) 19 Oct 172017 Q3 Earnings call transcript