WSBC - Earnings call transcript Q4 2020

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Operator

Good morning. And welcome to the WesBanco Fourth Quarter 2020 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to John Iannone, Senior Vice President, Investor Relations. Please go ahead.

John Iannone

Allie. you, Thank Good morning. Fourth Inc.'s XXXX Conference WesBanco Earnings Quarter to Call. welcome And Chief today Leading Senior President and are and call Executive Officer. Chief President Young, Clossin, Bob Todd the and Executive Vice Financial Officer; for archive of be our forward-looking Today's call, one which contains an year, available will on website information. are and afternoon, about as as this measures our reconciliations investor earnings-related our other of and statements in materials filings materials. well Cautionary non-GAAP SEC information included issued yesterday website, Investor These wesbanco.com. materials our on section the Relations are of available only All XX, and speak January statements as update XXXX, WesBanco of to obligation them. undertakes no I to would now like to turn the call Todd. over Todd?

Todd Clossin

you, an Thank operations to call the outlook. diversified well we're everyone. update of for delivered everyone today's and management. our XXXX and we review to are, earnings is quarter commitment from our driven our results pre-tax, John. doing morning, Good going by today company-wide the expense On provide staying takeaways and safe. record fourth and Hope Key call pre-provision growth engines during XXXX XXXX on

We per sheet charges. of of the available restructuring we balance with which our earnings well-capitalized our operating WesBanco institution are reported million a and for a $X.XX, well credit liquidity, future long-term successful the to $XX.X and We're environment net both when merger common remains performance execution continued and positioned us strategies, share opportunities. solid have fourth financial pleased diluted with and income growth quality. excluding And during quarter, as on shareholders solid of strong the focused current

of pre-tax, returns respectively. X.XX% equity credit Slides the and credit key our at we low by average our and income year-over-year, disciplined XX remained seen on strong X as growth well-capitalized quality of strong average remained on above of standards. favorable applicable, income and our to also Reflecting of same key $XX.X pre-provision well the assets strong our can averages. ratios capital be legacy million driven bank pre-provision and And regulatory XX% ratios remain On cost ratios earnings reported management, presentation, control. and our XX.X% Furthermore, levels pre-tax, fee risk peer basis, tangible grew

being financial company. remain returning to shareholders. we XXXth was committed for a value From addition our another anniversary, our standpoint, to year to successful In our XXXX

of the execution us Solid closed We to record, restructuring and million, strategies costs. and excluding pandemic. earnings our pre-tax, early of with prior generate well-defined the which expanded region pre-provision, Mid-Atlantic allowed into Old of we to when annual, converted stages Bank, our Line the merger merger-related through $XXX just

well, Furthermore, allowance fact, and the net or remain of for went that offensively. market a conversion preferred through Mid-Atlantic account well integration in XXXX, we losses, the so our we and for oversubscribed was In checking increased during institution, defensively financial of air. credit we XXXX, completed well-capitalized we us flow stock all offering a position realize whether August positive our which

named January, to I'm banks time, also in to America list bank. accolades, inception was list WesBanco best XXXX, since We the the receive and in just the the seventh best in the highlight to continued tenth Last a few. going Bank as for Forbes of national coming

received most was in which banks Virginia. their from when action Banks, scores satisfaction, across second-annual Bank was for and services. services, WesBanco standpoint. solid West ranking of customer was survey. of community America's the best to year Newsweek But serve well with as those very Then best October, customer measured of named financial a the recognized World's customer June, during again Bank scores feedback the that named based consumer as Forbes inaugural the Banks, Best bank to high successful advice, named and list was WesBanco needs the Best during satisfaction being magazine's which importantly, the Next, state big We digital on

look continue years we has to a communities for its outreach WesBanco many in and leader been For expand ways involvement. our to and

nonprofits, XX,XXX XXXX, financial directly centers of navigated around as loudly bank our actions loans they clock, extremely in During the closing customers commercial families, open and PPP roots. more throughout, I'm past employees proud our from and those through businesses, our needs. we donations the to pandemic. These assisted how than year responded community to providing charitable working speak our support individuals, this to keeping

to I lead affect As must example. by summer, change, we mentioned past this

In of and we that building is existing addition and recently initiative initiatives including outreach, pathing, a community Diversity Inclusion The education. women's has leadership symposium identified development events, our year, equality. and for and to several culture inclusion growing and on the focused career have employee launched committee a coming

expense Our other as for our and fundamentals, strength only our operating control of operating hope and of a helps of us remain evolve as regard in grow reaffirm also efforts. variety foremost, to is commitment to community spreads this and well we not to it but to XXXX, the underlying a company, first want to all environments. I that With positioned success our

believe immunized peer-leading As occur second fully the the reopen. begin half as year and protection growth reserve I provide levels credit both cycle and of when opportunities enhancing is worsens to are will economic people certainty. shareholder localities if more the mentioned, capital there organic opportunities, during more We and our

by securities We of take revived to businesses lobby expect commercial in limitations growth as small anticipate a areas, economies. loan rebound brokerage, business and advantage return and like lending more branch impacted

financial completed locations the the and system the consolidation savings of and through during During XX financial year, centers in our implemented managed anticipate this half accelerated strategy, optimization year, higher announced continue cost conversion nearby we phased half the discretionary January spending, project strategy. into we past this XX of diligently XXXX. be core past On our optimization we center to the gross August, of launched of first to approximately expected fees,

a will as Bob for organization our review Young, our Bob? outlook XXXX. our now I'd evident the turn continue XX%. for and to quarter have These we update our phase, more footprint resulted streamlined opportunities. main by ratio additional current financial this of CFO, year-to-date call fourth a completed to on we to over results for While in an like efficiency efforts

Bob Young

Thanks, Todd. And morning, good everyone.

During strong an market, of in interest stock continuation of environment the utilized accounting and standard. were XXXX, the the pace expense experienced mitigated the macro forecast economic expected the we concerns low fourth quarter under a economic control, losses continued the volumes, rate credit which growth, rebounding origination somewhat and of improvement by robust residential strong mortgage about current

credit primarily income effect fourth and quarter, we net result $X.XX a income the January months improved to of to million earnings the prior year's share available $X.XX, of was losses, forecasts macroeconomic common $XXX.X calculate to As interest diluted recession a XXXX. credit to shareholders the upon higher diluted the GAAP and for and of of quarters’ XX-month per and for of shareholders prior December CECL compared were ended net for million provision the a as adoption pandemic-induced used reflecting earnings period the as losses. GAAP XXXX; share X, provisions income reported $XX.X per three XX, available of net lower for common

per per $X.XX to year Excluding results year. $X.XX restructuring year-to-date, were $X.XX quarter versus and last share merger for last as share and charges, related the $X.X compared

excluding compare XX.XX% income, average to important better and to X.XX% a average assets tangible the evaluate year In strength pre-tax, equity believe As respectively. result, underlying improved returns core to and is as our pre-provision to well on as fourth prior provide ability financial restructuring performance, to merger-related order costs. quarter we demonstrate of periods, and it

which XX.X%, For the prior reported we in year compared increased pre-tax, to the income, quarter, fourth $XX.X period. pre-provision million

In environment. similar prior primarily operating on SBA of positioned quarter believe portfolio well the sheet increased for to XX% average period, X.XX% billion of for participation basis, tangible year due X.X% respectively billion the $XX.X fourth year-to-date to Program. assets X.X% remains and strong and strong in $XX.X of basis, a We and we when Protection addition, of respectively. loans average our the X.XX% balance equity on on reported pre-tax, compared XX, Payroll XX.XX% returns assets Total December a pre-provision and as and and the near-term

and applied million, loans, totaling quality and PPP billion end. their favorable $XX.X the metrics Total increase between year Loan million end for XX% subsequent Furthermore, consistent X.X% increased loan authorized for liquidity, stimulus during million to four growth Federal received remaining respectively. demand additional increased for of PPP such the received banks. and approximately $XX.X loan $XX net averages, strengthen XXX and for date XX.X% totaling charge-offs, at Act deposits. year-over-year, respectively, of $XXX.X the million, have of and quarter-over-quarter portfolio the deposited, prior $XXX quarter, first as now also which of reducing of under borrowings, available funds strong XX.X% banks and year total We've growth against balance in billion year-over-year lower and spending. draw due resulting total primarily which Economic and and approximately our CARES to bank applied prior PPP discretionary deposit story to SBA as at for certificates total a savings, higher with XX.X% we continue non-performing billion XXX total Bank larger for to and And received total $XXX.X recently balance program’s XX.X% XXXX X,XXX due peer excluding to deposit cost few loans $XX approximately loans, During key second deposit, a an credit personal customers loan past with by levels of availability requests loans, to customers fourth excess increased low driven and funding growth, a as years. and remains remained quarters and Strong reflecting days the SBA Home by represent measured received XX.X% deposits, enacted and Act sheet our deposit from percentages some certificates assets, assets deposits leaving forgiveness the XX.X% declined of year-over-year borrowers personal as Key Aid with forgiveness. SBA

charge-offs strong at year-to-date points credit remain points In six net addition, reflecting continue low very and annualized loan both quarter basis loan loans respectively. our periods for and and average to underwriting basis to the processes, two

all $X than fourth or greater loans quarter, such portfolio. XX% we the reviewed of hospitality million During roughly

million million for criticized third the $XXX.X this were the current reported the group occupancy pandemic of and total $XXX of net average balances was which quarter. the environment. as for the a recorded debt classified loan coverage net a the to X.XX% loan review, loans, to result of downgrades from These in and service reduced comparable peer driver As driven primary by of result hospitality increase quarter-over-quarter downgrades we portfolio

monitor contact in to close stay borrowers. and We with continue closely our hospitality

operators after approval hotel granted credit recovery mentioned last we XXXX. in their through additional fourth review assist the we and quarter appropriate select quarter, during As deferrals to to

borrowers may PPP previously certain forgivable who As loan total this to loans of hospitality to loan do operators SBA received for eligible their guidelines deferrals deferral classification. loan to completed eligible the XX% under monthly to from our of advantage about opportunity. were Further, take assistance and expect Second a PPP added of TDR them hotel Act December a loan times act hotels, be that Economic XX, of including X.X We a excluded additional which our a within three number hotel which portfolio loan, average provide Aid payroll. represented Draw CARES outstandings, up

strong pandemic. reasonable weather mostly with approximately the provides most us relative PPP a guarantor as to XX% hospitality of of authorization should value based of as average portfolio be combined an loan well and support on our loan remainder to with the borrowers deferrals the able that confidence with new level of pre-pandemic appraisals Our

provision and fourth CECL will reserves basis economic totaled as for losses to ratio, to specific adjustments clarity affecting reflect economic market loans, loans. macro materially losses year-over-year partially factors costs points. funding allowance can to portfolio The await the when from of The calculation, the metrics portfolio, and quarter our XX representing quarter coverage year to credit on excluding compared the efforts total million December at and helped $XXX.X quarter’s was CECL information for specific for million rate the the those fair total presentation. X.XX% relatively the this improved lower and earning asset yields, XX $XX.X operational total SBA to Excluded Slide or or before throughout credit XX of loans previously we basis total repriced and are the yields from million assigned of However, viewed loan a These our additional on deposit total earnings third basis loans on fourth reduced release Reflecting allowance our loans. in value XX the the acquired of deposit portion losses negative credit or points consistent quarter. of for lower $X.X with lower environment, of portfolio rates measures provision loans. PPP X.XX% Reflecting last under beginning significantly we the funding commercial offsetting be costs aggressively overall this interest which to XX quarter lower these effect new related points loans,

points volume included of benefit While quarter. the quarter of borrowings net basis basis net compared quarter, or core two accounting Home fourth borrowings due deferred is quarter Federal points of our million. the two further margin This averaged off low some as origination paid during due excluding lending, X.XX% million organic originations I pricing basis XX%. mortgage Reflecting Fourth fees, evident prior was to recognition approximately which million. sold discussed hedging and we and of the interest gains accretion a compares December the dollar forgiveness half our for offset to banking the points X.XX% income partially Bank points mortgage which XX, of cost Also XX% historical into was approximately discretionary as X.XX%, XX.X% purchase primarily to to actually marketing About our averaging current construction $XX.X fee $XXX during increased expenses purchase benefit acquisition. year-over-year growth, the rate be losses reported market, secondary for deposits. charges or PPP XX XX PCD the totaled as to service of mortgage income year-over-year, Total management XX% to our an employee million, respectively company-wide as to on from sale interest $X.X lower increased loan dropped X.X% the and related quarter four purchase one home by well-controlled on of volume million solid accretion residential X.X% to between earlier. third as interest net gain XXXX. and expenses. loan ended headcount primarily costs, year-over-year, the effectively environment loans Noninterest continue operating by total Reflecting family when were the through XX% efforts, residential the two increase was XXXX XX accounting point efforts as per sold Loan and $XXX manage range basis lending $XXX.X increased basis to margin for from or banking in reduced to volume, XX% income was benefit third from same

Line cost the additional expenses control total savings mid-year increase company-wide center X.X% are XX-month expenses, Old primarily quarter increases salary year-over-year as acquisition, size discretionary our XX XXXX increased XX% to year-over-year efforts point merger-related and restructuring cost operating total offset Old as Excluding due core of annual merger. planned Line $XX.X the to by financial XX.XX% XX, quarter-over-quarter in the Line, and due the the partially the locations from of for for million to ratio our expenses. similar and basis and Old ending from in period a Despite staffing the acquisition demonstrated by well efficiency approximate December decline fourth an

on financial and focused is the management sound years, being XXX for institution our For shareholders. bank's a strong

the the future. XX.XX%. stock a the opportunities us of ratio of based now remainder capital outlook potential maximization for the enhanced by on capital These million of of and an our and one the provide asset tangible we total XX, issuance reported continues to me risk of December pandemic tangible in a on thoughts $XXX capital continue of let both strength, environment preferred current XX, XX.XX%, for August equity that XXXX. With operating daily, ratios As significant tier unprecedented limited to provide tier leverage XX.XX%, to ratio evolve one for some of

five-year As a between next and a yields industry-wide last overall remain to treasury the years. margins three-month spread to of long-term at to rate near affect for least expected relatively including an lower net environment asset expected in interest factors the flat bank the and continued sensitive term subject couple

should quarters a accounting our margin quarters which Residential similar Reflecting and mortgage Our deposit lower record purchase the roughly throughout be Electronic from decrease normal interest fees XXXX anticipate this commercial earning more basis quarterly rate million totaled strong. be contractual currently economies patterns $X during loan current two is banking on rebound that as due fee follow to may both environment, asset of swap next the – the actions relatively with that from levels income, net loans to revenue albeit assets, interest or and we new generation to PPP as margin to the continue and currently continue earning down at forgiveness PPP gains should purchase on margin, loans. XXXX. are back we were to term year remained during as trends borrowing anticipate than most realized general, interest and fourth X.XX% in due booking yields, We on we and lower accretion will can and remain accounting PPP now loan anticipate few during be revenue forgiveness non-interest experienced costs. lives. total We access still benefit volumes XXXX. the somewhat due In greater from fourth growth the strong, sales the organic points during is brokerage the lobbies be trends continue of XXXX. additional will slightly on SBA than which accretion able GAAP net and longer weak loan partially the the taken our they and their the charges of our Securities the should new aggressive dilutive excluding in points are fees potentially new loan the by a likely net margin an markets financial few fees equity in the PPP stimulus to income impacted originations to did quarter offset as expectation of to year. the near until the to to basis to in Service from to PPP Trust deferred and lower loosen be we're this half expected have net influenced accretion, reopen. lower loans restrictions debt deposits accreted by into centers. associated we recent expected

will We on to expense the diligent while curve. continues of to also the back is efficiency XXXX, reminder, range, focus XX% economy up. continue subject yield long-term maintain throughout to in once our pick ourselves starts management for future to a organic be And as which positioning the mid ratio the our growth shape

increases, We and marketing somewhat are during campaign for as our market. anticipate new our brand this also a of result in still currently merit Mid-Atlantic year mid-year particularly costs planning reduced higher annual image spend XXXX, and

Regarding in quarter. to employees during by be of positions of from XXXX third the we locations other to filling spending savings, technology of and be phased open fully optimization cost digital in realized financial net the approximately the plan, half center first $X benefits million our expect and and expected

direction as CECL, for classified provision we also footprint macro charge-offs, in quality this As some upon continued depend credit at economic will we dependent have well economic changes. metrics, credit optimization changes including to should general, Todd review reserve point charge-offs at as improve macro noted other Since evaluation will future well factors absent various upon XX, year. In to and our for the improvement to our and continued provision loan portfolio to the under Relative additional continue mentioned, XXXX bode parameters. continued of the December increases should losses during criticized and experience releases forecast, for provisioning. potential our opportunities recovery the economic

questions. that, to full review tax policy income and XX% we're now And we be Operator, anticipate in well year with as rate tax take your Lastly, any to we changes strategies. between would certain to you ready or nationally, the please effective continue currently XX% our to subject as instructions? anticipate, taxable

Operator

question-and-answer today We will RBC Instructions] the will Capital Duong from first now begin with question [Operator Markets. session. Our Steven come

Todd Clossin

Steven. morning, Good

Steven Duong

of Good guys. things. Couple Hi. morning,

on margin. just So the first

are have quarters You your plans liquidity? your of liquidity a guess, on amount few for sheet, I what balance with decent next the excess that

Todd Clossin

take that. Bob, you go ahead and

Bob Young

some six liquidity about affected the points balance excess $XXX by quarter. to points and measured the XX for on about Steven. million sheet for basis That's of million a $XXX against margin our year So, the basis base

So as as indeed the impact. does an well have for that for – industry us

Our other upon monthly see $XX and cash portfolio and are million flows and we'll prepayment basis that million between a $XXX projections obviously the somewhere of investment depending speeds maturities current on in factors.

we'll new of in we of And portfolio additional and have that the first in adding year the January at potentially this we that so recognizing year. liquidity well stimulus end be the from the received into the Act back as the part more Aid as Economic

Currently, be an the we'll quarter, reinvesting million we're as that portfolio. the targeting into additional So $XXX well. in first

take will X% or move basis that around and Now, so. them to point yields XX

Steven Duong

Got it.

to be is just move right? $XXX first in securities you're that portfolio, looking million quarter clear, So the that the to to

Bob Young

Correct.

Steven Duong

on year? the What remainder with then that the great. for borrowings intentions of considerably Okay, pretty this just FHLB year. the are borrowings, you your down your brought And

Bob Young

thirds million $XXX between In per million we've quarters, XXXX, of quarter the two $XXX off. just will this about those last So year. seen due in we which come three paid and anywhere

level I in it we of get as until XXXX replaced. – a will the to to to that earlier. the more we larger balance mentioned to that than We past in going size Steven, liquidity down we're given sheet, continue gravitate we level a to with have intend do but lower have liquidity

two anything for of at about see, XX And as the sheets XX but balance this due the those experience the the come of bringing I half the point million basis thirds this the at at of at year we in deposits, – remaining first year of continue end that most. won't we to year think would points those year. you're back be so that, half the replacing $XXX to on least probably we'll will increases And

So significantly two today lower between X.XX. than where and those are priced

Steven Duong

so. Hope

that's thirds two, coming two X.XX, that off, right? they're is the So around

Todd Clossin

That's correct.

Steven Duong

Okay, you then normalized CECL? is guys now what a level you of with lastly, just talked reserve leasing. that reserve doing I great. And about guess, for you're

Todd Clossin

Bob color I'll like. add think When last if really first some that. process of was with he'd we pre-pandemic I through start all can went quarter the obviously, that Yes, year, everything. that during

think up so X.XX% we number I brought reserve acquired to X% on or the mark and level to was portfolios. the again that the excludes

So X% the long that back down but how get based points may Bob, to banks would new upon that? be CECL takes depend a to basis all I decent XX again shape the getting proxy the you but that calculations. and wouldn't level, will range, add XX down expect what it around the on recovery back to of it to

Bob Young

don't viewed percentage of and the at and allowance looking to the with upon It's was I Todd, you're goes. you're think of [ph] Yes, we'll XXX. a methodology recovery three ago. tend that digits, pace pretty even the under it I get end agree occurred that a years charge-offs amazing decent starting course, XX-XX as there the how this by depends year, would of with

versus than or us I to commercial the industry probably fact and greater portions impacted to so credits of for that other pandemic the think X.X in term, I think reflective degree some C&I, see our mid-ones, for peers. and near in a X.XX estate the of the real you're to going that and the hospitality

bit You Steven? peers as would that this least that down year. higher can come and might we for we're see they currently at and think come I little gap down, a than remain

Steven Duong

missed more on squeeze you in, this this, quarter? Got in it. just sorry I back to buyback, are I'm could looking just jump if if And but I one

Todd Clossin

about I got feel portfolio. optimistic think going about with we forward, to regard we're on obviously want and to that clarity things with credit buybacks, where hospitality make at good we've the we just sure cautiously

be So that, we we're we the would just to I so but had buyback or to we or but there see to that My to expectation terribly think would just clarity. get it's like see. as before, anything that like seeing think really able be want clarity anything, a quarter two the on will more I concerning re-enter we plan cautious we that away of before I kind be not

Steven Duong

Got it. All you. right. Thank I appreciate it.

Operator

And question with Casey from comes next our Whitman Sandler. Piper

Todd Clossin

Casey. Hi,

Casey Whitman

morning. and maybe around you with Guess credit, pandemic, we continue we the Hi, get capital, just vaccines about With with maybe M&A. the what as more out would just thinking good conversation comfortable come of mid-year is your markets thinking for an are for there additional I of others. particular than guys M&A this how you you for kind M&A, update more about appetite just earlier guess hoping year. are interest that

Todd Clossin

after smart merger going we XXXX that year integrating all said but last themselves, Old Bank going Sure, be what if want anything. was the we that be don't Line you to about feel Line of is we're Bank about advantages to in a Obviously, FIS the compelling do from provide our focusing you're We're opportunities pandemic, and to Old to and need Sure. bank completed there all with it's are upgrading core present doing, we XXXX that about had of us more efficient with even and before this really conversion. well and automated. additional make lot a It's going the that. on we're about upgrading core our excited customers year same own to IBS,

is our energies this that's big of year focus really our on a that's part that are. where effort to So and

so, the quarters And in what very said think that. I past stayed we've on consistent,

clarity to pandemic on a people's in clearer sheets. balance by. it's But get other that that is hard now, we're so happens, so becoming goes and I think Just clearer quarter each

not something XXXX. conversion. anything Could core anticipate anything. close – That's the again, not closing So we focus on in looking would XXXX, actively our at is in but

Casey Whitman

you back the reasonable you. of just Maybe what if be of growth half potentially back a your around year, growth? thank help maybe And returning. quantify can to of commentary think the you maybe might Understood, about loan sort circling some expectation for

Todd Clossin

increase about I half you that loan our X.X% year, excluding the at obviously, that, PPP, when the nice it X% net was – that the residential of down X% secondary to about we side, C&I of start but about was in with was to the see. which sales on related think were last X%, was growth was up of still Yes, market look last maybe that, an down X%.

our is of other I roll a the we a on commercial balance see you that's as and customer's there caution So balance out of on the is and it lift – part forward, but bit, sheets, our liquidity borrowers little sheet lot starting think to there balance there there out sheet.

a through or rates going of before and for So mid-to-upper the that are advance lines We were work I think on they're two. think in XXs mid-to-upper see quarter XXs still that. credit I first they to the

I think And then the year. usage to that we for be back that would pretty may next getting and and will on going drawdown cash see quarters growth see we'll start. think the into this lines our to year end towards flat year. year, be think second see couple loan like I'd to in So some the expectation start to and next the I growth be mid-single-digit growth, organic maybe more are the I of but low-to-mid primarily the of will that this some half and of

Casey Whitman

you the then lastly average me, are just Got Bob, just remaining be quarter? of from you PPP of it. just balance how That'd you what And fees us can and PPP from round also the couple questions tell fourth a Thanks. for that there can helpful. loans in probably was on in housekeeping PPP, – much one, but maybe –

Bob Young

average fees, I $XX.X ended at balance. don't million. about of $XXX know if which of net the the the We remainder million, the are I have year

a You modeling currently from year, of be of in a recognized modeling say two have earlier the I then amount our first quarter. are the in who quarters greater that this anticipating will fourth would perspective, to recognize, that exercise last

So XX%. a there less a anticipated basis before improvement you towards first previously point the if and of the might $XXX now the we original end wanes And away of than XX% the year by probably or second two the and million it been thinking end in residual this here had year. the will, of of quarter have

the of of million, and net million way the $XXX and difference in the $XXX just forgiveness much that as $XXX the other last between December million than fee. I So deferred to until $XXX said, we really didn't two million was three is experience weeks

$XX the total part responsive? million mostly about that originally. I to $XX.X $XX XXXX, recognized million $XX.X that and net in the million, $XX most $XX the Casey, as as million were I this expected for So year million of that of We've recall, – deferred of fees first about half. Is and that in million rest said,

Casey Whitman

Thanks. let It is you. to someone very on. helpful. hop Thank else I'll

Operator

from next our with KBW. Lotz question Stuart And comes

Todd Clossin

Good morning, Stuart.

Stuart Lotz

long morning. But to a year years Hey back capital. the your we on in XXXth is the if history. go tremendous guys. your probably Good surviving year. milestone congrats of most interesting Bob, And This was could one obviously. Last just

saw we stand in you say, is to ECL me on a of you just Tier where curious under buyback, – these year with risk of kind I'm let the kind engaged what's half ex What X% the use So sidelines the of XX% total this you've that back just on PPP. why quarter? buyback. XXXX, you kind some release throughout got until the XX% of in [ph] keeping release base, X, if clawed reserved and with

Todd Clossin

good Yes. question. a That's

mean, being cautious, I a it's think as just just company. I our nature we're

things be tell driven we substantiated it's formulaic CECL aggressive do. upon that model everything. the Obviously think been be as we kind our from looking very I economics. we is views, perspective, to of what reserve the conservative. kind when you reputation to to and that's think different I'll and have our different we're need be see is of clarity, are But to banks would got pretty But do regard based all releases at same that with I which

clarity those we models But models at good about will those feel get run right we more as as run. So say, – let's and particularly we're again which the where hospitality portfolio, as now. the just really

move to lot other right another – just would I'm of have to now, same a or I be and really driving. the pretty get point doing. CECL doing supposed is is capital would returned on the is behind And be of at we said. kind just banks' – And – related wait far the losses until of quarter I'm as be that that make you too. to see my well that, clarity the just vaccine you lot quickly. the two expectation not it's We would on then that more clarity that from And as expecting carrying not know same side too capital a As position our we be don't CEOs it, we're if get on industries, would with But be other and in thing I vaccine sure time what think we're think that.

rates I the therapeutics think if the place. get are are herd that everything they all there, really taking and drop, out that to good and signs and the are we continue death immunity

year position if constructive I So to surprised weren't like something really really we be this be a on in later that. would

Bob Young

those would from self-debt repricing December we a it – at our Stuart and so its both be we'll YCB-inherited have be years able early that ago, to with from five-year year. this imagine of I that preferred Started million pay few next $XX year reached looking proceeds of frame using time this year. also down the those debt or reprices either to in issues

would So that as well. mention

Stuart Lotz

the in the And the expect year could the quarter? offsetting we if back to or what detail takes run maybe of this turn and and with of Bob, the out of the also core causes? this all then given Appreciate conversion. see really in some closures Where of kind on puts do the you kind first technology planned year rate you shaking given the Or with Awesome. that half investments week branch the last expenses. then,

Bob Young

to you take in? I'll me do want do to jump and Or that, you start it? Todd, want

Todd Clossin

to No, Yes. be start. glad I'll

fourth of lot travel the we degree was pandemic of last probably that everything of because number and the the of some lot the saw think in a that I else work a quarter, the aided and restricted. was combination quarter, really effort, to by

continues big and expenses and improvement if into XXXX really mean, XXXX XXXX focus beyond and frankly. I head have that addressed We're be big to much expenses. quite XXXX, to to yield thing we looking organizations on very As already curve need the are the shape, a to we in don't really get

that. So be to on proactive we're continuing

We hiring have a in place. been that's freeze

me. a there get any is by freeze positions replacement my there. Any really to HR positions, approved new So, Director and need

our step, focus it for just our big on of that's level organization, the but So expense a sales shows pretty you side things. of

be continue to as to We going we're forward. go that more fact efficient we

based technology it's acquired, course going speak, the And there going so branch automation. dependent, think and because continue to we're our review and to in because are I were the to opportunities across newly lot parts upon the the or with of people even given have to branches to be upgrade we're core a I to are the because going change footprint we help less there address that footprint, well too didn't still going more, to network XXX at they is our so that we but as look think asset there. continue size,

because there, out spends investments that want mentioned with the we some of last we've see And tech years. we're on and huge tech going suspend to the particularly get Bob been any spend like focus increases that things markets. last branding of I and really traditional going that of don't that or like Mid-Atlantic we So And marketing over then the or forward. all the of pandemic. marketing really the do year did side side, got that, to the merit doing number in the anything But we

know offensive people the growth they can can the be there. that and really see so with regard there, on we're us to So we

million overall in terribly there would other, in consensus and for plan And a out think we we've quarter. particular, year, overall out that at with puts are next takes or the as for what will there or of we in consistent you of here look tell right each the expense done us, kind consensus but for way Bob? couple or the fourth uncomfortable that's that at expect be that not be quarter looking there we we would that one with So numbers the banks now. we're the may the

Bob Young

also pace. million Yes, was of some higher may you got And we year out Don't we will, of of the to quarter. $XX discretionary million spend really Yes. acquisition [ph] throughout but we a the as and $XX you employee year our and savings incentive that adjustments. at call did of was of recall million there control, that it difference related we've Old you million, a early the an indeed, some Line year bonus, for that run as guidance a or this of $X but increase want well $XX.X when and pandemic-induced, the end lot the our better cost had know was for to $X fourth of terms if About between as and that appreciation one-time, the Most in promised. an of third comp period-end true-up performance year. million,

have So in one the been time that would fourth quarter.

in up securities securities employee employee It's deferred also offset you is of pick in I gains remind you gains the part gains which Some that offset benefits. to are of compensation, like securities and benefits. for

So well as fees that's really – it as it both doesn't affect expenses. impact the bottom line, does but

the a little quarter recovered was as markets that in fourth as the higher So well. bit

related the additional technology otherwise around spend kind right $XX.X to flat million but that core $XX And mark. million, conversion, holding some of

the started year. we Now,

other not factors base Todd that always some changes, of higher increases were You insurance we the tax of with marketing. reduction that. pleased on improved, least capital say impacts is some saw FDIC We which of risk the payroll with mentioned our that because

couple of hopefully So a but parts that's there moving helpful.

Stuart Lotz

XX% with some and of to PPP LTV very all I pre-pandemic are or of seeking if you them and get reached guys round out if recent kind at just the more to new – is in a regards – you of of that helpful. two quarters going they credits? And you book appraisals That's have – terms you round those to to clients, maybe PPP Yes. XX% guess on in hospitality all, one the those any two, and

Todd Clossin

pre-pandemic. to is is you it answer And – Yes. that

cost, So to we reach are because answer timing. on around reaching our out more your to to questions it out hospitality they PPP, was us, did already

majority we're for So able the of what put place great to we've that got. in

million $XXX that's $XX The on it's loans, in here as a be the about LTV of the round, in year, end was pre-pandemic of couple a round. there'll a loans again more last hotel the PPP and in million first XX% of basis. second that specifics, bit in and little was about so Just

the of a One we're debt – category criticized primarily had coverage. focus more reasons migrate on the criticized service heavier was, putting why we into

XX% Hilton, to in I'd in more it on occupancy types November just West flag was the the About about the It XX% dealing The month think But only Indiana, is we flag we're was not and and the are the come and borrower of majority And operators our a them we every things and service. past, to third think mentioned so areas September Ohio, liquidity, of make based in near Wyndham portfolio location the and rates, stay, the highways, of star challenging. in occupancy upon altered months, there. XX% location. third X% about full portfolio so compared October get in prior that limited-service, Maryland should located XX% main flag InterContinental, a XX% would fourth the Choice, significant and back with in those suburban during under organizations, XX% seasoned third you quarter be terribly liquidity about debt XX% Marriott, a pretty guys and requirement based I I of August did service-related service, that And XX%, the XX%, stringent reports kind and we about Virginia. X% quick. Pennsylvanian, Kentucky, upon XX%. debt in XX% extended XX% of X%

XX% would numbers little So in April the much down were XX% expect, as and May, you range. the back in in bit November but and a above which

to nice the prior seeing say guess, I trends I we're – winter would So some months.

they're this a language status certain them or they've to we that got in PPP level the full or payment to but Springer slow status would is if have certain there little lot these down expected winter structured we to with return still portfolio, up liquidity months interest and a status, number, to only, reach and turn as set a bit occupancy We if the which obviously they liquidity. the deferrals more hospitality payment full a payment this

of for that in deferral end have period time a So payment they because I of the returning the loans that are be expect well period would steps there. the we before that those deferred hospitality will language to time of

is that expectation today. late is deferral early your are that you values but spring, things pre-pandemic, the as LTV make to be would come summer down would spring, guess the So months return as the the number through normal, think what to

but time markets, we'll this, the about clarity some they've pretty You've I okay. actions we sold feel strong but it, should taken on there our see confident haven't different are pretty steps be on too the good operators, you third I vast portfolio third that seen and a of Again, we and they're think them they've anything majority in the where out and seen they operators terrible quarter, but hotel get by of with well-positioned customers the haircut and the into quarter think late taken.

Stuart Lotz

you don't anticipate your book. downgrades to classified from any further So that criticize

Todd Clossin

how of think service continue grade in else. liquidity terms to the I everything and debt that keep in we'll same and with ratios place the we

anyway fourth for quarters the quarter, to of a third of banks a the because I'm were the quarter speak. on big going hospitality industry, of kind not these and think movement in you're in deferral, and see have quarters out So a the I lot so lot right. first the sure whole to it's soft hotels

you're to – see just thinking the star on the reports. occupancy going and with I'm going on much I So

I other, can't in get one clarity you change start anticipate see the mean way just of the third where in quarter, and I the or on quarter, – really the first definitely, if quarter, that's think you I so second a to but lot and I And the it.

Stuart Lotz

taking for my questions. thanks Awesome. Well,

Todd

Sure.

Operator

Our next question Davidson. D.A. with comes from Gunther Russell

Todd Clossin

Hi Russell.

Russell Gunther

from follow-ups lines discussion. of Hey, I guys. morning, Good have quick just Todd. two prior

of I the prove in that outlook Old Line the back the but time near-term first growth have on loud the and looking you rate. expectations, terms growth think hear the was The to goal your to of organic announcement, accretive to

low-to-mid to from a trying So a digits. to single mid-to-high move

changed, has the might something goal, lot look is still ultimate to that achievable? as that but Now, and you is XXXX be a that

Todd Clossin

Yes.

in markets of area, right of the As low-to-mid It plan bank that to that, a higher were Northern growth. the acquisition, historically Community growth the and the to change single-digit loan – – your before into Line couple those mid-to-high on growth years Lexington from area, rate all and Bank we Frankfort Kentucky mark get us you're bank but also then growth with the the there. acquisition, single-digit FFKT just wasn't acquisition Old

plan, lending the So, went And it's we've still markets. got that's those very the think why I we teams. much to

pruned the got pruned we've right the pruning the hotels, place. the multi-family. in some some consumer portfolio, pruned positions to We things, pandemic on we we think some I prior did we

a those things did of that us. we So, behind types that's of number

don't speak, I so a coming growth out of of to really So, the see headwinds, lot loan pandemic.

that's XXXX. keep able see. So, we to this wait do, the recovery, story all based to pace the to were in have so should we through have we’ll that processes would intact terms XXXX we'll be But in see. to of of normal more I to upon what and or back be we and trying not, should whether hope

Russell Gunther

Got it.

Todd. on Okay. one, your for thoughts that Thanks

Todd Clossin

Sure.

Russell Gunther

on today can coverage, service hospitality ratio lastly, the where internal out shakes you following hospitality you reviewed? if to are pre-pandemic on the just versus loans that share then the increased within debt able weighting And debt guys share coverage up that discussion, were service

Todd Clossin

would on think to don't side. would see in outlier portfolio in anything I be that the our But banks other I don't that me. have an of that maybe front that hospitality have in anything different I reported

we stay we Today go I house to pretty that Line that the And borrowers portfolios one think to people April, five, pandemic They there the running and not would were too. March, think, are obviously. of did weren't look XX% really a in six, the I early in you back one was one hotels. though, – I the it leave. mean, was that lot as to prior I wouldn't bank mean, are well well allowed occupancy, of pandemic Old was, level, you the was, one, and the if underwritten. be that be told to at things that last when May, were

on So, that it's they've debt kind coverage wait when businesses been disrupted. of hard service to

at like we and that's went we flagging more start other looking through, subsequent did that clarity things rolled and heavily as more quarters and in So, late when fall the guarantor to liquidity, and recovery summer little support. started have last means But after little and pandemic on occupancy. you started, a of to in things bit get you to last with we summer, and a regard

to more a that's shift the it current specific be just I parts caused on a little just toward don't debt be downgraded in of service cases. a we based it occupancy one service thought portfolio. would lot though But bit. appropriate to I So, But portfolio ratio coverage would imagine upon below have coverage, was which, debt the the level. of

if to chosen expect on haircuts covering part would back of the an of We've there's I and of a be value that simply status be challenged there service have We will debt out, of gone be to parts gets when the I one, value going LTV of be there. back the the majority not to you seeing protected quarter, them majority But to are think already because quarter aren't, sold taken to values. of that and pain do third few case just banks end get point we that. that into second over there, would that great that the by portfolio at them payment Some kind the there think is these really would status. to and we're late return return and expect and of perspective but and this

Russell Gunther

me thoughts And your appreciate it guys. questions. that's on Thank I you my for Todd. answering that for

John Iannone

Oh, please. yes, Bob

Bob Young

Yes.

X.X then X.XX. between they that June, were XXXX that. that an account through XXXX, beyond For we was and quarter of where estimate the and had the Back averaging estimated downgraded, in into end first ones what was it were of really and at X.X took

more lower goodly that there The relative to with unemployment. number factors a improved amount. macroeconomic classifications So, and were

Page So, that deck. XX see on of you the

would quarter. X.X% that But the down adding the the allowance greater to percent basically, at and hospitality amount. hospitality end of a here which back reserve, caused into to have went portfolio come between by whole that X% we're the So on the

Todd Clossin

great and clarity for Thanks the service.

Russell Gunther

of Yes, you Thank from both I guys. appreciate very it much. you

Operator

B. question next from Riley with And our Securities. Steve comes Moss

Bob Young

Hi, Steve.

Steve Moss

Good morning.

for with regard believe in it loan-to-value on the mid-XXs. quarters, following-up Just in hospitality the to was XX%, the a moment, I just prior

drove of the curious increase in to kind what Just as LTV?

Todd Clossin

had hospitality portfolio. regard Yes, activity we've some to the with

have taken properties to we and care too. sold, operators and property decided the Some owners that of that. had from impact PPP to done that have also too. I had haven't there as going have any as any including an to well, credit believe sell, hotel well, impacts are it But we're And in of loans

by impacted couple have may percentage a that So points.

Bob Young

all at $X Also, to a Todd, we looked million. down loans

looking loans earlier Steve. would down and estimate smaller $X XX% portfolio by includes million, million loans XXX the $XXX at on comprises a this the of to have been So, total group, all

Steve Moss

XX you a year housekeeping, thinking then as Bob one what Okay. for just for Thanks purchase that. That's for helpful. of basis. you, And full curious accretion question accounting are on kind to

Bob Young

two So, in quarter through CDs, the liability pretty there that which additional And is would that and have quarters, of down. points, paid prior couple to will you little I sub-debt. a accretion, of said continue points much say mostly on a a basis was what said what couple we actually basis it off We're continue quarter was come to the that acquisition. I in accretion FFKT noted loans from a old bit PCD of was this

for So us the that took quarter. basis up points XX to

without that there so anticipate from it move then been as would down XX, should forward that drag have and in XXXX. you You it

Steve Moss

Appreciate Thank color. perfect. Okay, very much. all the you

Operator

Brody from Stephens Inc. with Preston Our next comes question

Brody Preston

Hi, good morning everyone.

Todd Clossin

Bordy. Hi,

Brody Preston

wanted place. Hey, that increase in circle to you Todd, the that's still I on mentioned back hire

Wells disruption and as the West DC bunch corridor, So, well. folks True Fargo, been recently got to Baltimore there's a and with some of

opportunities within be And the marketplace? think so, old to but to help building legacy do you you're the any expenses, prudent new and be this of make to trying market brand mine going WesBanco there's assuming I'm maybe accelerate, on in kind hires

Todd Clossin

has And I'm hiring I that be Director. new going those we definitely. approved and new my but it reviewing But got Yes, what's people open by are and know hiring me to on, people. HR so

in network, on a do take anyway. people. had some replace during I or court we a branches to there. of puts cases, tighter overstaffed wanted cases it. certain areas had person where be going some open type advantage the quite just away we So, And wanted some or savings some those could And able that been branch focus our some is real a it conversion that just half a frankly sure got and person things would make in backroom tight We've handle a positions, those what we staff have that to to we of have be not here on

I've So force have of whole in gone is XX% announced that just some it. that's that. the things idea reductions and to like behind out have to of a seen X%, higher level banks focus

from it. there on a through of I couple mean, a areas where think, from growing. eye a of we positions names yesterday taking production can we put the growth but I on our get standpoint. in even they improved close sometimes But, And are perspective attrition that some revenue also

So, doing growth, we're right. are about be come growth because be we to not to this want positioned to on expense what going a of and year to there's there. we story going we're quick for foolish got pretty be the And, out side, this

could so on long. only save You expenses for

invest revenue I in in good to a the things hit to on want we later judicious on want side, at we time, it, to same be handle that miss but the I right the we'll got sure year. it, of don't we side so because but the expense that areas So, about the want make

Brody Preston

And pretty the growth, maybe was this quarter Understood. solid. guess commercial PPP actually just growth growth on excluding I sticking with the taught loan I

else? for so, or it And a I sense utilizations was get wanted tick a drove what in that, mine something was to it up

Todd Clossin

continue on we obviously think just doing can business very, general, confidence. and saw we mortgage But more the our lines, good because I that's customers growing. warehouse very to is well usage in see Well, really residential getting

little but I because were third Bank. line prior year with I quarter, year, a banking bit our think that pipelines of reported end bigger XX% in commercial from Line the quarter prior in pretty up the third the or the particular, pipelines, our but much were Old from down of

Chief So, pipelines I guess down, firmed pipelines Commercial and and Officer, of the Banking, to a pipeline me relatively couple mentioned growth speaking. seeing But Jay in the more fourth Head we Zatta, weeks ago up of and, quarter, starting were the really to are grow. that in Banking

residential, not but the commercial side. So just

think flowed sheet there. trends terms the the I nice balance And through of So, we seeing saw what are some quarter. that in fourth in in you

Brody Preston

Okay, understood.

Bob Young

but fourth indicated Certainly, portfolio and runoff the gained refi $XX of to million a those great the mentioned was residential I The as construction LCD construction in market. projects a related amount mostly rolled bulk the fair to product. funded of have $XX loans. into in CRE loans book in we that was to complete. the there Todd as funding to all it earlier, sale. So, as quarter the And utilization degree, We was, that a million, still down participated on of line and

it Line XX.X% mentioned XX%, the for the that's line down of quarter. other around couple utilization And over comments. to fourth utilization, line XX.X% to three quarter fourth of net-net months would that market. But the Todd that a but So, the XX% utilization just we secondary mortgage ended be XXXX. the experienced went in warehouse, about in

Brody Preston

Thank sense like Okay. to Maybe new just for you book. rolling that get loan what the versus detail, for right looks off what's Bob. extra now want a yields

Bob Young

deck. is actually we on? what in page John, have I may that know have We that the Yes,

John Iannone

the of X deck. Slide

Bob Young

All right. Okay.

Brody Preston

I to then deck. the yourself just read have can don’t Bob, go you repeat Sorry

Bob Young

little new the compared deck depending than banks below. average hold we X%. cases in some a out we're more to other a upon terms It's at point reduction want getting But right higher portfolio. rate time of in on it. over that the have there loans rates waterfall. that on as in the in top then some occurs bit where of I life minimum to loan the trying risk situations, yield floor certain But rates, to can because you our that's see Again, though And

them. lot We have that repricing in five-year loans floors of a have

as reprice they level So when for inherited, continue this floor quarters to earlier at to as XXX, and that XXX, last margin even that margin, Old below to overall a of that I holding mentioned Again, is And Line, X%. offset be at they are loan fair year, also set. upon depending be which X.X% would the And the reprice, margin of we thought indicative amount book the reasonable to turns where might asset cost from but on inherited sensitivity, not longer-term to down we three relative deposits helpful. XXX side yields time adjust other to a do and of book GAAP out again, borrowings detriment we pace. the coming flat a investment

Brody Preston

you that on work me. last CD mix are you looks to one well. down going of to also one just Okay. have then I borrowings understand I wanted had the And shift deposits side the like a to the are as throughout opportunity from – which – nice you've it year,

we would similar to to on we've wanted CDs? throughout see a that rates a then that get I to expect runoff continue different? XXXX new that or so, seen should for the are And And if sense offering pace what at your be if

Todd Clossin

we've of don't got two the we Yes, at cost we with for about the couple a thirds to got stained and got below loan-to-deposit off place single with funding a anticipate one changing, there that bit renewing quarters site. capacity of higher our in least that quite XX%. I next as strategy that are renewing ratio and those not CDs CDs liquidity are are run service Obviously, to us. are

Bob Young

that banks, on acquisition of overall priced Fed was be I to particularly about fair funds Line ratio the have came ran. benefit advantage the cost that reduced time We Mid-Atlantic at given to of including loan many as And, the weren't and higher our CDs, the of to CDs. high rates. we going pandemic and market amount in the DC of course, inherited a of Old lower so, along we Yes, a talked deposit think, the cost those than

on are XX year. a points, expect we CD new us, to slightly the a runoff they maybe is basically So, going helping lesser would to but of kind still basis at lost we at most. XX be degree into And basis points back – into part, end this back XXXX the bearing not saw going to for interest accounts. go But it’ll will it's all most in of just up that transaction past that going

Brody Preston

Got morning. it. Thank I taking this all you questions. time the for appreciate my

Operator

Plevelich Bennington Scattergood. Joe from question next Our with comes

Joe Plevelich

morning. Good

one the quarter mortgage up thoughts might on quarter the then banking Just side. first for shape quick and real Any the to versus fourth mortgage banking on for how a overall the relative year XXXX?

Todd Clossin

there. what not to another seeing – obviously expecting year, still you kind year year we're now, with depends next of give what's it, rate. But trends strong nice another as as the we don't strong at Yes, good nice, But XXXX. just really We're on obviously it expect solid we look us. guidance it’s happen going very, very for as right

year, it to overall, solid you another think when us. course I look year very we see the the is to which going for be where, of So throughout would out shake to quarter but expect hard

Bob Young

we negative a that TBA was with I use quarter. portfolio we end the the the commitment Yes. And that hedges up mention ended hedge which would bit adjustment a to negative at hedge on of of

around you'd first on gain more see would sale on quarter. to expect the turn a the and visibility little bit that we Joe? So, in

Joe Plevelich

Do you that have a was fourth number on in how much the quarter?

Bob Young

$X.X million.

Joe Plevelich

you. Thank it. Got

Operator

James. William Raymond with question comes from next Our Wallace

Todd Clossin

Wallace. Hi,

William Wallace

around in you variation growth more pipelines loan if we at are and seeing growth, the demand returning little rebound I markets your quicker also of you. get look in wonder seeing your return demand rural pipelines bit markets, your a And wondering if I'm your Thank the further metro your loan markets? of as any more conversation just then and markets? you're you Hello. if

Todd Clossin

markets it's tell versus in I’d We're our No, metro you across Board. things our similar hearing non-metro markets. the

markets benefit loan in rural side, opportunities the We rural tends markets. to our expect because that maybe there on our to be of least we markets more at higher of lot growth be the some metro than in a growth on cities deposits

are now, not differences between us. important right the seeing any they we're But any to So, of really markets.

our seen same each are a about the very same And of markets that synopsis we detailed they You read tenor. of each thing, all have. month

William Wallace

or And might – if Okay. what third but but then what's apologize, All for might've second shake dollar all the what's you applications then round of the And right. guess, date? I Thank taken I you. think in? the or have to – out program PPP, you you amount all that the on you of round, do given this, you

Bob Young

X,XXX borrowers. funded. There's we more Willy been funded applications, far, is what's million so what but that's $XXX on in have

William Wallace

relatively And slow has similar already? starting applications to remained of the pace is or it

Bob Young

Todd?

Todd Clossin

Yes, it's bit, a a the you at little had push slowing obviously big beginning.

in and now, second we did And here. of that million estimate, I right $XXX much think is we an this the half as again thought the round our but do is just might first in round.

one sure well, to up some through, as really it's because XXX benefited when that. I in it my low, range half. we're be customers to of that as too. customers, a our relationships supporting us want a little kind about existing as in open doing things but of to So, up make XXX, be been guess customers, existing may it base is typically be it if about first. taken we're we could we've customer Primarily new little a for picked round we've you we for would then do but once, prospective we care are high, And of some thinking we're expectation result We end would current

William Wallace

up that. end the XX% what that now now? what you Bob that same very XX%? Thank you Did it'll heard one loans round you XX% it's earlier at being Is been you you you problems up much Okay. anticipating I say, say end think saying. understanding And had were that forgiven I would for had and of with

Bob Young

left XXXX case, Willy. on one. a that. I and expect be to But the be round that'll I have not go be program, at pace Well, minimal from first a number was XX/XX/XXXX. making that think, end at the would all I timeframe, to commenting end said the and the XXXX We're about I that we off would what the what in relative not don't of just to very of hasn't paid in two-year the call of forgiven forgiveness on

William Wallace

Okay.

Thank housekeeping, in then average last balance that's helpful. question, of you. quarter? loan what fourth And Okay, just was PPP the the

Todd Clossin

think, that Well, question I asked was And… that earlier.

William Wallace

look. Okay, I'll

Todd Clossin

all that's No right.

forgiveness two to got Casey, jabber the Remember to the for of that I of in think that it year. to, I was last think said I my bulk folks, weeks occurred, on as million. $XXX three the the I

William Wallace

guys. Thanks Okay. Appreciate the time.

Operator

Duong last from with our And RBC a question today is Steven follow-up Markets. Capital

Steven Duong

Just a quick one on again the just buybacks.

of that that to adhere payout that guys And catch an you guy are there you get looking philosophy looking I also, the up you you are mentioned overall that of into around you think so get X% still back to pace? once Is your before the the a peers is it? to shares. sense we that at

Bob Young

Well, a decide, really not And to for to be obviously it's we got we've Board capital going we things in with regard at would we've target, just – level levels decide kind that's to prepared materializing. downturn significant say, know and we ultimate got where a of forward. I

back you in hit, back back had bought a stock. we've quarter of that know to they X.X% fourth bought had when than peers XXXX would buying about got I we about By So, And of we buying we and return. year started you go time tell our some to lot back their about that. started the a or so back earlier X.X%. the pandemic the

keeping decent of I is up think above there to probably because that and on group. a laggard capital of pace with capital. too But the there pandemic, we group beat But pace there amount level we were peer we delta getting our what our you recognize work to realize company, went of be buyback. on X% was in capital on are also of with a relative our start we to coming a that plan to the keep well between being My And much would to going that prior of hitting. And such wouldn't carry cost a balance. group. levels. that and pandemic we side, would about we see out well-capitalized the want to be as this conservative peer us terms So, very we a with high expectation But the a peer

expect But because if to used peers able have think to up again. would get that to I delay up we of with authorization line in I ahead and us number the back by But our probably not be that would gotten going now. slightly pick probably just we're probably our have of to them.

Todd Clossin

you were And finer three detail. We remind our shares a XXX,XXX during we that shares in Steven. remaining I that just between months buying and would million timeframe four And XXX,XXX X.X authorization. month current to have

Steven Duong

general And generally it. that that as look guide a well? during you below period, then that we Got guess XXX% were is can at payout, a I

Bob Young

In dividend of and combination terms capital? of a

Steven Duong

Yes, correct.

Bob Young

Yes. I Board-level defer our would discussions. to No, that

hard that. are kind we peg a think pretty right It's of volatile to percentage in I now. what ratio is and environment

a going pandemic I think look five a prior back because to that But regard or starting with us forward, time. and four position at with maybe be ratios, our bit the you capital would payout go a higher, probably in we're little years this that's look to the higher if expectation. good

Steven Duong

Sure. you. Thank it. appreciate I Understood.

Operator

back This to And concludes any call remarks. like to I'd turn session. question-and-answer the Clossin the Todd closing for

Todd Clossin

look as upcoming please Have and like one forward just you. John stay everybody thank And investor good thank Bob, at Iannone, Yes, Get virtual conversation of and well. please the questions, I'd follow-up a to any our with and speaking discussion. to additional day events. thorough for me I and with you safe. thorough

Operator

Thank now for has attending you conference today's concluded. The presentation.

You may now disconnect.

WesBanco (WSBC) 27 Jan 212020 Q4 Earnings call transcript