WSBC - Earnings call 4 2023

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Operator

Good day, and welcome to the WesBanco Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Mr. John Iannone. Please go ahead, sir.

John H. Iannone

you. Thank welcome Fourth and Conference XXXX WesBanco Call. to morning, Quarter Inc.'s Earnings Good today President Chief Jeff Officer; the are Leading call Jackson, Weiss, Vice and Executive and President Officer. and Financial Dan Executive Chief for archive an be our forward-looking which Today's X call, contains of 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 WesBanco These statements wesbanco.com. to materials our on section January All and the only XXXX, Relations update are undertakes of as speak of available obligation them. XX, no

I turn to the Jeff? to Jeff. would now call like over

Jeffrey Jackson

an good for successfully operations of our and update review morning. and Key our call, today's our our current John, XXXX and loan, the we from are: of deposit results quarter the today outlook. the call will through strength teams provide and sustained on Thanks, fourth takeaways navigated our On and headwinds industry-wide strategies; XXXX maintain XXXX and on focus services delivering Reserve's rate performed fee income leverage the focused quality industry-wide caused and operating customer products sustainable during continued by escalation, strong credit strategies. key growth; and interest headwinds new well growth Federal through management. Despite positive through measures; the expense our record and levels on WesBanco capital service

strategies environment. balance for metrics the a organization strong liquidity, and credit remaining success sustainable execution, levels strong capital quality long-term annual Through shareholders which sustained financial achieved solid maintained with well-capitalized appropriately successful built and focused sheet fee sound deposit economic operational will loan, advantages credit generated on of income remain ensure growth; We growth. while for and while ensuring quality income regardless and core a we and investing our net upon well-defined institution

loan shareholders. to continue we capitalized XXXX, solid for generating value our begin us fund liquidity and remain to we positioning growth with As capacity well well

resulted equity operational and a to the we past as just reported full Throughout for we continued that capital accolades of to ratio and of shareholders performance of past when income demonstrated on and net net per after-tax the to And available charges. to and our and reported excluding employees. year work XX, of performance, financial from milestones focus $XXX.X assets $XX.X million financial we our several quarter by demonstrated customers provide strength earnings the XXXX, points diluted hard of our the Furthermore, accolades of XX tangible and year, common year, accomplished strengths our total available restructuring shareholders million basis our $X.XX. a For tangible flexibility numerous December ending continues recognize testament common per on the income employees. to commitment strong operational of of earnings the during our X.XX%. XX%. Nonperforming are diluted common is These excellence merger also position equity that to share communities, of by national common assets dedication and receive to $X.XX share and and sustainability return and which

So I to extend you a them. heartfelt thank

into accomplishments, Act Reinvestment few years. We its for more our than performance, FDIC strategy products than a its our eighth new spanning with outstanding long-term account serve a fast-growing XX WesBanco by the exceed which more to our sustainable of and introduced loan better customers, to our Chattanooga the composite strategy. highlight WesBanco execution expectations the in step new commercial continues to adoption including XX,XXX Just One the consecutive of new services migrated growth accounts date. and to Community office production was period rating awarded We expanded another representing market,

Kentucky Ohio Valley, markets. building hosting in-person in Ohio, Northern X by diverse WesBanco our workforce and to equity commitment conferences a our inclusive Upper continued Southwestern We and Mid-Atlantic

year favorable banking strong of to standards, profitability, Lastly, of story of Newsweek's growth we by to and quarter-over-quarter we strong one assets driven loan customer-focused our reflecting for deposit our billion rankings on which between recently, customer as soundness, receive every recognized fourth employees all the teams. low best of And community as We and and $XX while and and and digital day past which was remain regional maintain our banks efforts growth, year-over-year employer this top strength continue and routes our quarter stability for and well fourth at philosophy. were reviews. The year, maintaining We named services safety choice. $XX profitability financial customer credit with quarter to advice, annualized, lending the based XX% loan commercial average key soundness, and residential and our billion. of service, the reported banks relatively X% and both was growth solid nearly levels were

production Total commercial sequentially hiring office loans loan increased driven X% and banker by and year-over-year annualized, strategies. our XX%

more we appropriate X for our XX% ensure are we generating loans topping that loan continue growth commercial the fact, as return to the strong than on a earn continue yields commercial on accounted are production offices return the we loan investment. Furthermore, newest demonstrate during X%. as In they year new loan of to an

XX% January XX. level of flat roughly approximately Our the December was XX loan and from $XXX at a commercial increase pipeline XX September to as million,

find to driving to been pipeline the continue replenish has teams business that loan Our strong our opportunities growth.

earlier production offices additional Tennessee the growth our production in meaningful for range and economy, of retention initiatives traction. fourth annualized with teams, the to current loan and and upon mid- navigated banker continued loan deposits representing in the Through generate gain account percentage. Dependent the XXXX to single-digit deposit pipeline new Our as upon Commercial a loan XX% offices hiring XXXX total quarter. deposits total expect we upper we generation during the year-over-year. Building of our the increased grew Retail of company-wide from efforts campaign, the which industry-wide grew successfully our during again quarter, strong success the X.X% we third turmoil and

fee-based noninterest this our income positive wealth organic business driving focus with demonstrated services management trends year. revenue our by is past and In and as swap commercial new million addition, during trust of on diversifying streams $X growth new our revenue in

to continue bankers business focus our on fee cross-sell. work relationships deepening Our a on deposit and commercial with diligently

the of X market. fourth deposit relationship of needs win to forward. recommended deposit Ultimately, including financial and perks expect relationship. commercial a and a a had client banking and of several team to we A accounts a team our team of strong the we family client's trust discussions management accounts, client personal figures, wealth ICS at and treasury number going the Western example multimillion-dollar with highlights at our needs, nice quarter, tailored commercial win solutions, unique complete continue associates winning comprised in expanded Pennsylvania employees and to totaling more we retail, our deep to better serve a During deepening efforts the the management significantly accounts. This customer. After additional its work through and these several earned business relationships relationships understanding understand commitment

important We investments leverage. strategic positive continue make that operating generate will growth-oriented to

reductions hiring bankers including ensuring to During business year, about quarter intend combination the generate treasury staff expect and This reduced business past XXXX. another and all initiative, loans of fees. attrition the by of financial drive and retirements reductions centers during additional retail staffing focused expect to our and management is transformation to savings the of for grow and program and our the of use initiative we XXXX to growth. We during currently a which banking merchant revenue staffing XX of through XX quarter. hour employees throughout first We overall half and models additional deposits and appropriate on complete implemented first the through our we

We build year on expansion with banking the expect coming potential years. in first a business investment the slow through a

business of more profitable, comprehensive is primed our management treasury and progressing a nicely. into sales-oriented organization to transformation the customer relationships Lastly, be

payments. enhanced cards one. from cards reduced is virtual of and We traditional card the efficient elimination to are more new to travel of rebates migrating a payment. Customers payable combining by will business-to-business companies errors, year. our benefit payables check and process rollout generated forms during from the a designed of of of the pay-in-full mitigation issued payments established entertainment, is half and payment of AP couple purchasing for solution fraud the Integrated products to employees streamline into customers accounts a costs, card completing first Multicard potential fleet

reduce will to enhance benefit controls Customers optimizing from employee fraud payable efficiency designed and benefiting from while robust accountability.

new addition multicard to robust reporting to transaction is rebate receive card somewhat of In agreement payables, documentation completed. after takes total annual an longer clients integrated and transaction control, their clients based onboarding the complexity will multicard service spend. Due on

time a service However, after shorter completed. frame multicard is documentation agreement the has

and commercial we an small made believe business-to-business great industry experts payments in opportunities untapped banking the for our clients relationships. market deepen estimate commercial a of our XX% we U.S. with and all is to this check, have that business are still As

update results and to revenue investments serve we the Dan? focused for We I are Weiss, on long-term financial our would the innovation believe quarter on are and beginning of prospects of XXXX. Dan customers, customers be growth with to and currently strong in an generated over building XXXX. the during fourth now and second to turn CFO, better building a are current for for our sustainable that growth. commitment shareholders. I examples These outlook drive a employees communities, like call half pipeline to

Daniel Weiss

good and Jeff, Thanks, morning.

a deposit growth, strong interest demonstrate levels Our margin. credit net fourth quarter and to results stable and capital continued quality loan and

primary For common compared year. year or million results share was merger-related the prior and or million compared reported per the in environment, full release impact shareholders year excluding and quarter or ending driver of available recording of year-over-year $XX.X XXXX, $XXX.X shareholders share diluted the $X.XX we higher prior after-tax interest rate as common as of to to million GAAP million net to year a a or period. The per this inflation. $X.XX provision share for expense the provision restructuring per in share to and available XX, December $X.XX diluted income $X.XX expenses the the income the of $XXX.X XXXX Net was for per $XXX.X

$XX.X grew $X.X portfolio $XX.X strength securities X% initiatives. strategic nearly December assets our year-over-year, and of portfolio of of XX, billion total As reflecting markets with Total lending of loans loans billion. teams our including and the combined billion, total lending of

billion portfolio compared the loan year. Commercial our within the during an growth environment. level continue $XXX the loan $X to use of real totaled $XXX portfolio XX% million growth to as the the roughly during funded from payoffs of the million normal estate nearly cash annual fund anticipated more range We flow to operating year as in securities loan regular a

as market to approximately with throughout billion of for the million XXXX. Residential for to year, the originations As the CRE mortgage respectively and compared stabilize XX% $XXX full payoffs potentially XXXX. anticipate we totaled decline, pick as to sold up of into rates we secondary continue meaningfully the XX% interest $X progress and pace originations roughly

Our and million retail teams grow XX. of increased $XX.X billion deposits as commercial $XXX to total from year-over-year. accounts and totaled a brokered $XX XX, customers and December deepening relationships continue of million both sequentially Further, existing new by winning September at deposits decrease deposits with

deposits deposits, mix we million total representing third the deposits a demand growth Excluding rate $XXX the interest increased with down third X% continue in rate. Consistent the to deposits annualized quarter. with experience from broker environment, approximately the of X% our higher noninterest-bearing over quarter, shift some

demand and margin from XXXX. The continue year-over-year deposit to due costs consistent to higher of of the deposits as deposits and stable total the and interest third declined CD However, rate deposits X.XX% higher to ranges fourth similar market accounts. net quarter's with quarter remained and industry, and total deposit money continued demand funding but the remix noninterest-bearing increased percentages since to costs averages remain

basis We deposit XXX from quarter and increase loans. loan through the costs of Total basis maturities higher-yielding for XXXX over including mostly of were offset higher fourth of into the funding cash points, linked reinvestment funding quarter. points these XX noninterest-bearing the deposits costs securities an

period than was fees wealth life commercial X.X% income quarter, points Our $X.X exceeded management that more X.XX% the well in is loan the December of $X.X and new quarter income. commercial from Swap fourth as during have as as and new losses increase million year-over-year totaled swap bank-owned X% prior XX quarter. Noninterest the million XX the fees. insurance for totaled quarter an XX yield valuation driven points the million, during loans basis offsetting ending year swap commercial $XX sequentially up basis by yields higher on fourth

the doubling year, the For of generated the full amount than $X swap exceeding million and $X million new we target. the more prior during earned fees, year

initiatives. loan Operating lender our inflationary strategic to expenses nationwide as production pressures previously hiring elements of investments completed well continue long-term reflect as and office growth including

noninterest and in totaled the to to were equipment and support $XX.X year-over-year insurance. Salaries our banks FDIC were higher loan expenses, employee-related midyear software also due our and $X in merger-related special higher and project software, banks, and that up and expense for up upgrade was XX, campaigns. increase XXXX, restructuring that some the to Excluding December marketing minimum expenses, to for subject ended it's expense merit Equipment X million the months due million, ATM and from increases. FDIC worth other increased all assessment noting the was not but incurred. higher insurance of FDIC marketing deposit we due rate wages

million are in due fluctuations higher and health is quarter. in employee gains. securities equity and expense within to just and securities compensation increased fourth within the compensation gain expense reminder, recorded benefits' recognized market care deferred expense net The employee a offsetting the costs benefits deferred and $X plan Lastly, added as

market $XX.X rate the fluctuations, run fourth have million. these Excluding quarter been would

has the equity remained demonstrated compared peers. regulatory by above and standards applicable strong are position to ratios capital levels favorable well-capitalized as that Our tangible

equity Our of of tangible held-to-maturity shown common XXXX, X earnings securities Slide X.XX%, supplemental was X.XX% losses the tangible basis presentation. to points or unrealized up as year-over-year assets including on December when XX XX, on as

environment, We as funds as adequate risk in well and and deposits liquidity demand, believe meet continue ensure borrowings well market as to loan positioned actively opportunities in changes other our of operating advantage manage arise. that to they we're any for take outflows unexpected to we

current our Turning to XXXX outlook.

XX-basis-point three in some mix higher cuts of into September current June, X.X% funding higher-yielding deposit model Fed to December, environment and and until with reflecting continue to the unchanged midyear, rate products. remain at We deposit operating costs funds shift

Trust market of first trends. into will to We the expect year but some growth be year. the [ equity X.XXs from and throughout ] the by half in the modestly benefit then mid- slight net should interest income of rest stabilizing margin contraction and impacted the fees organic upper fixed

quarter on XXXX. should Jeff the focused anticipate rate, positive adjustments building quarter Jeff remain due amount move by remain some trust XXXX. We income mortgage banker benefit as hires. we're Gross generated on originations income, earned well overall and during the half the in secondary the market. income housing slightly level center economy if range approximately modest focused drive fourth staffing from As cost similar sell the transformation this, anticipated over expected to of and additional our interest a fee brokerage a optimize network XXXX preparation the second to the first are the the staffing consistent into into and spending could impacted in the we're fixed on modestly that and support XX% be tax seasonally resources Securities management with plan fees. Depending reminder, disciplined of rates delivering charges to to leverage. range fees, run hires. upon market additional deposits dependent last customer on management overall to our benefit and to from amount quarters few which from to into markets. Electronic revenue-generating are growth commercial to to the continue with the excluding expected we expense adjustments, consumer the make but reallocate preferences, market equity to to The residential we of operating banking organic mentioned, begin should higher and will behaviors, swap remain fees products are service revenue lower. And are business treasury during is banking highlighted, during of improvement branch And grow to XXXX. Mortgage are consistent partially but trends, savings financial we in be see some new intend regarding subject pipeline

So we the first relatively to half of flat. year expect salaries wages and the be in

in the and and costs anticipate upgrade add and offset will growth our decrease this service and to benefits related Software expected and item. and related enhancements in between and -- ATMs maintaining equipment other product which $X.X marketing to expenses, line the deposit loan by are ongoing increases million the occupancy per modest to throughout while year employee currently We million be $X higher of quarter a plans. other to our due

during back of effective factors changes charge-offs, lastly, technology we changes during increases, provision loan the balances, merit full various expense credit we depend year as we regulations Based and rate tax to criticized levels. Operator, you be and costs rate due between year. The the qualitative growth. forecast anticipate the upon health subject first half of know loan are higher $XX.X to on grow currently And what for today, prepayment CECL now the then be the investments losses annual delinquencies, and midyear questions. run Would the XX.X%, to review the modestly in fees please credit our and under potential in macroeconomic instructions? well to fourth half of tax as believe will taxable XXXX future and including quality quarter consistent with and reported our roughly metrics, million take and we classified ready XX.X% income to changes care

Operator

first will Shepard Capital the [Operator from RBC Markets. Instructions] come with Karl And question

Karl Shepard

loan versus And Just in these to a It just quarter size? strong you of very about you're little seeing there book. verticals, the wanted start was the industry different what talk growth. obviously anything guys. the of you're a for new production I bit kind Could on about the markets? rest you getting loan

Jeffrey Jackson

sure. Yes,

and our that pipeline CRE a loan obviously we're of As portion going LPOs. that business. this into strong nice it's year. of -- of I lot big growth businesses really is from it's mentioned, say our would A seeing C&I we mix a

we're rest It's say the across than really it's our I are different what LPOs differences, as obviously, these of would no seeing that, just far As footprint. new.

from for And more to a them other lot banks. so bring their customers there's opportunity over

seeing And a nice there. pickup so we're

see we expect pickup as this continued to year. We move forward

thing add think nice to part is LPO method. other be of are year. I move would by continue will this it's And our I using way our LPOs loans grow we opening always as That new The we cost-effective that forward, a up. evaluating strategy we the

Karl Shepard

don't you hoping If And Okay. that little little then how guidance, on guidance? I is what margin to a in rate the the cuts, could half? get margin do if come cuts And bit a second different we was touch improvement Dan, sensitive it the earlier, on to you still do expect scenarios. would

Daniel Weiss

Yes.

higher us to continue as in but upper-X.XXs We'll would to on deposit we exception a costs that at yields our are expect into new extent will So will provided Karl, than to we working our as reprice just maintain neutral think would come average that do headwinds in well. cuts, pretty cuts posture. say, the and we in to growth, with commentary. short in think slightly you higher at know, outlook to prepared mid- come at that we generally deposits get try and certainly, December, margin X.XX%. the that do in terms term And kind than we asset we And some of least about of any the came that But deposit tailwinds without off noticeable in our a that I or decline seeing I margin kind our of that trajectory think of spot pricing. that our see upward if the

pace. also of much noninterest-bearing into slower but of at a continue course, we remix anticipating, a XXXX, little as We're bit

to $XXX here, about at margin. as May. think deposits Fed for roll to sources, are example, of scheduled funding So I are $XXX in million tailwinds Those in do the roughly. But headwinds we those brokered have $XXX would in other XX off plus we kind think funds that particularly here, million we April, million points about if call basis priced

coming that a headwind. repricing CD X.XX%. or in little million, than from That's is more of XX% repricing -- that, a about about So would XX be book our certainly the months. that's next $XXX

adjust can margin. already we of kind the to or of there. So we into cost is an up But extent baked down, from most that see that

also, FHLB And billion are They're in also X-month nature. then $X we that know, as have about short advances. you in borrowings very term

see those if extent downward cuts, the was And any quickly. rate to that we I very we say continue then So would on. repriced

you and is portfolio deck rate, our X On slide as the the that of and see obviously side, portfolio variable XX% in that asset fixed rate, know, XX% XX% every can of commercial or being you of variable that months variable rate less. reprices this

$XXX that -- neutral And $X.X those months would So of to downward. keep priced X.XX%. we side, rate The that coming of right remaining in there are cut in around helps the X.XX%. a that's on variable currently million scenario, off XX next reprice of portfolio or repricing billion asset about rates. represents adjustable about kind the see And course, about

if is even would right at just XX expect portfolio about months our look we reprice next here we of to those XX% So overall then commercial in around generally upward. And fixed that, fixed, of XX% the X.X%. portfolio, matures the

to So of then that's an we've loan securities there. repricing mind then the that's keeping in our momentum new our got cash on X.X% yielding today X% up that rolling and handle. portfolio flows X% that also coming and we're And from handle currently growth with lots

with positive I cuts say X. XXXX. of that's a back we the lots of X long-winded of as But going that or momentum of to kind be into basically again, So half pretty we kind think neutral really way head saying, we're would of

Karl Shepard

That's you takes but great. it arms it. like around for and your of Lots sounds have puts sure, guys

Operator

will Bishop the Hovde question Group. come Next David from with

David Bishop

benefits employee focus a some expenses, on have the probably reflected up. the you of this and growth lender operating LPO obviously, year aggressive expansion Jeff, hires,

maybe to the restrain rate specific there you than within other the slowing is that. benefits, growth can compensation anything maybe curious do employee Just to of

thinking expense overall. how on keep to a you're curious really lid this Just year growth

Jeffrey Jackson

or to we And Dave, at next everything. in looking we're month Yes, went hoping we're transformation, wrap through that the just and X. a retail up

employees XX. XX down we Retail, looking down take were to You in another may have seen we're

of into that banking We the some business space. are reinvesting

there see efficient. And The make the processes can are is to we're to kind bottom performing we that bank we're do branches. back we looking other always the to evaluate of going some space, across then if looking Retail thing them our more

again do and expect at we to so look year And this hours well. that our as also

looking of So that. couple that more we we're have reduce and looking I think do this really we things year. opportunities I to think efficient. can do as there some we move But to we are a always expenses forward become do think We're

David Bishop

in of down And the -- are the fully remind expenses me, terms ATM fleet in upgrade, is Is rate? those you? run that that behind

Daniel Weiss

Yes, final ATMs, ATMs I here the XX quarter. in put were the would say the XX into place fourth

they're the run not rate. into So baked fully

around on my somewhere prepared other related impact ATMs to on basically equipment basis item a and about million I expect in some there, that commentary of and line investments. $X quarterly think software I

David Bishop

XXXX? Got loans. is it. to what cash entering the flow and margin the circling And then for back securities quarterly Remind the prospects funding of us

Jeffrey Jackson

It's quarter. usually million a $XXX

Daniel Weiss

still where at. That's it's

Jeffrey Jackson

a to million still loan And $XXX we'll use still obviously, It's growth. to Yes. fund that, quarter. continue

David Bishop

it. then on obviously, And the LPOs. side the from success, Got the new loan finally, you mentioned

the in seeing Just side new in locations. terms any if you're of curious of out or funding that these traction deposit

Jeffrey Jackson

Yes.

on continue of a loan obviously, We a expanding are as yes, our traction. we C&I focus to we of focus. deposit seeing are some It's more But there, growth little a, especially seeing funding. bit

It those deposits. Dan fees, goal year. So us. and as and continuing returns one our mentioned, as goals, we fees strategic of well, feel for LPOs swap between really to bring main also C&I opportunities are expand $X does brings it had We driving like obviously of last million that's nice really some lending that our overachieved our our because

Operator

next with The Gunther from will Russell come Stephens. question

Russell Elliott Gunther

year? what And X 'XX. peak Fed of baked for the first half appreciate and on assuming kind give guidance fund up then your into could all the you Maybe just Dan, sense sticking what's follow the expect you deposit to the takes. way cuts, where to in are margin with a data, that puts for wanted I you And I cut the discussion. the of down? us for

Daniel Weiss

Sure.

say mind. anticipating X first -- and really, lagged? So think couple that's to the from range disclosing the really we're or that debate. is, I the But I in our see up there's the in we of generally of in as or of right within try costs in here XX% we we year. that the to away know, our Russell. in that are own potentially in that along multiple terms would that occur deposit you to after betas, But But Is peak a all modeling, and is X stay X cuts we Is beta way down so is benefit of what One terms margin. under scenarios, questions question come immediate? for modeling half

down faster than So we rate at see pricing. deposit costs coming asset a

Russell Elliott Gunther

of the strategy Dan. potential that. I as great, part That's Okay. growth the switching mentioned you for new this year. then LPOs follow-up. And appreciate just a gears for my Jeff, I believe

on color geographic great. appetite any Just be would

Jeffrey Jackson

different lot our fill Tennessee, evaluate really, But to on focus of we in Sure, there. is a geographies. continuing

possibility good state, presence are filling there the to North say down and X but as a either And and we our Richmond, mainly for where continuing main We continuing once would fill is Ohio, areas. look South. But be have potentially could those another then state expansion road. the potentially move say, have part to at always look again, to we or potentially Carolina of or at Obviously, Knoxville in Nashville Ohio. in Virginia. at I in Chattanooga. Northern would well. and we're Chattanooga We continue Nashville a would there I look areas. us, the Virginia out opportunities

Operator

The next question will Raymond come from with James. Daniel Tamayo

Daniel Tamayo

you maybe back that put if expecting talked year, the how on the what the year terms in to want of revenue? just And point I guess, and treasury you maybe online, little finer management guys investments. lot XXXX next off big the starting the on a over -- about contribution do of? your that on you're thought goal ultimate could And in there? of fee Maybe Like grow of contribution comes a just you half the as that course into

Jeffrey Jackson

Sure.

reliant less be on spread to looking always we're think I revenue.

XX%. so revenue And total for But do. a multiyear would around what looking me, that's targeting to target. be fee try us, to for we're That's

it the pipeline. continuing As relates to mentioned products, we're TM to we build our out

these We place. in are getting products

do is pipeline I starting pretty believe so And the strong. to build

As to far of guidance give on would be think any would be don't as as out the the it far we really that second year, I what as revenue. half But want half operational more from second like, be year. more support it changing are pretty of function. Once we treasury again, management significant our over a sales team the of the to transitioning

the a half that believe new put in And incentives based nice and on the the for see so I transition do of our teams. commercial year second we the products pickup together we'll and

Daniel Tamayo

Okay. Terrific. capital. second And just question, my then on

benefiting, as soft landing fit assuming your capital, build continue just that rates lower is, everyone a from we or into thoughts could You're on you curious repurchases to share And how priorities? get do then the here. capital

Jeffrey Jackson

Yes.

that our at be kind look and we loan buybacks. would kind capital look We at think I starting of then then deployment capital M&A our the Then put would top we at growth, with be obviously obviously, of dividends. of deployment.

of capital something banks really point, But we're are at down right actively looking now, would opportunities. list. it's may different out the looking other the We the always buybacks. But not If priority I for talking back change half on in to say this year. deployment at

Operator

Next with question will Catherine Mealor from come KBW.

Catherine Mealor

Maybe the comment M&A just just made. to follow-up as you start a

list? deals kind that's it in slower. what just at. of been given about strategy team at feels your and been do top how about little M&A? thinking It talk Just to you're has But the a takes M&A LPOs M&A more And recently active of put of a like to get versus would potential us priority think what you looked you bit

Jeffrey Jackson

I the about filling Virginia, LPOs Ohio. would comments it be looking. in, in where lay would Typically, just I made Tennessee, we're in basically same

acquisition us. asset do it's a position I But one And our so $X usually It's nice our of for billion fit size target bank. position option to do We capital and of kind a billion us, we a asset is an definitely good That's of that XX% for us. to range size. an have think XX% great $X for to in in come along. should are a

think in potentially that. we our history has then deals of the market shown to I the these create So do test kind waters and after that LPOs

So market for interest think us as difficult. been are you to believe I that I not But course. would I rates the M&A sellers mentioned, changing again, decline. has see looking once do

make may there want seemingly go difficult see up talking. wait it to they because will we potentially to out rates that to be so continue decline, And more their valuations but

Catherine Mealor

And then remains great. That's strong. credit credit, really on just

starting to a how it any this provisions really couple you may of the for low. still lot and year? past over that think You've Just term trend years of outlook you're had negative provisioning

over generally, just year. about and the thinking you're provision cost cost next So how credit

Jeffrey Jackson

Yes.

look is For our continue us, well. on credit cost which office, office and to continue obviously doing provisioning they're the stay related to portfolio dive see there. this and same. shape sure We in would make credit, we to at great year, look all a our for to obviously at do our relatively I deep to

so fix but to do strength there, credit those add have and you a We or anything provision? credits restructure like on every those have here to you on been rightsize Dan, want far able credits borrowers. our of we've the based and seen, bank, the

Daniel Weiss

ordinary. loan Probably the unemployment it, the I those be dependent provisioning to anything big certainly, of wouldn't significantly portion on No, covered going is Yes. based of rates. events. we're forecast not growth. or out really today, you based is provision absent thing is allowance And seeing forecasts, think And -- on our credit I the upon a of biggest Jeff. mean,

in we're in of we what as similar Jeff 'XX. experienced -- something kind So that here just said, to anticipating

Catherine Mealor

credit -- loans in just coming can fixed rate as you anecdotes are repricing. your or Are just seeing seeing give any what you're of CRE some estate at maturities, any your commentary commercial you on due stress on looking real be higher And interest in moments seeing any those rates commentary on to of or rates? kind borrowers just kind Just enough rental just with of what would of your you're of helpful. impact offset the kind big

Jeffrey Jackson

Yes.

we've crisis, like obviously, 'XX not few a caused stress. for seen a customers real said, picking the it's people thing great had, here since or mean estate forget has developers. we've bank, as stress. every the job we in I've that deals done been But to. great there have nice the really And We run that lend a is any I

a had lot they the have provide been and when so refinance for which fortunately, so on have equity a rightsize into deal has to the been of our and to rare, us, And situation, do customers run step liquidity based able we in additional of the higher the rates.

Operator

Casey Piper question from next will Sandler. come with The Whitman

Casey Whitman

growth see through ratio walk the my were single-digit do Or XX%? WesBanco? this us loan How have mid- So year level comments comfortable deposit against for with for growth. around at deposit right questions you upper your to can you assumption the loan answered, the most are here what maybe you you as of but

Jeffrey Jackson

we will deposit growth. do I have believe Yes, solid

see once as little to ratio, our the to I again, it that we believe do helps growth. loan-to-deposit that growth potentially do relates deposit XX%. a up far bit loan creeping our growth. As have could a loan quarter XX% outrun near I the to of $XXX But the million might fund

believe could up it see I will believe help fund because I a and will quarter, be a think deposits. loans slightly But moving gap. the do by So that margin, million outgrow I don't securities, I $XXX will wide do it

Casey Whitman

book is I Got getting are And range? with how a comfortable Or as the you it. of securities percentage guess, there a low to, target assets?

Daniel Weiss

of it's kind so Yes. our say Casey, bottom I is around would probably right mid-teens, end. XX%. assets total say would I of XX%

Operator

Navas from with come question Davidson. next will Manuel Our D.A.

Manuel Navas

questions been too. my of Most answered, have

Like of kind help dynamics growth year. just through pace growth Just loan it? loan Or CRE you're accelerate me the that touch Would you of slow could it? across down year? across the kind of walk thinking on the on would on kind normalization rates pay

Jeffrey Jackson

believe actually cuts I would a we're it modeled, we mentioned, I'm that have few X sure sure. not paydown Yes, cuts. as that modeling with really speeds. increase

permanent I about going think bigger paydowns, our going think need about, think I CRE book, When to obviously, market. to you're the but cuts. I

here of moving lot worth to me, a going of make it I And market. cuts there couple isn't or to think so a CRE to permanent the

either think I it our rates So makes that if think speed growth XX-basis-point me, for impacts I sense. loan might reductions I way you cuts, up see in But think dramatically, if three it don't slightly. help

Manuel Navas

that's No, helpful.

book, to to better securities deposits. fund to need loan growth seems for going borrowings restructuring -- any And has like securities opportunities any been with you're the it the of some been of thinking paydown With book? that Has constantly there like perhaps? this there are you

Daniel Weiss

Yes.

nearer ratio comfortable we've feel where is We're liquidity the we the had the loan there comfortable that with with discussions So is. Today, have, we trade. we those every quarter quarters. We think into that last improve. probably not. to don't need obviously, X we're deposit for feel necessarily losses that the in loss that, that And cuts, that unrealized to those are going enter term, feel kind we rate we of with

little So and rather a I'm and couple and take on securities. selling it we're out quarters of wait loss then. where in go I'd hard-pressed today loss to a a at trade the see more

Operator

concludes our would Please over back to turn closing any for sir. This Mr. session. like question-and-answer remarks. go Jeff conference I Jackson the to ahead,

Jeffrey Jackson

us today. joining Thank for you

income sustained products loan, and year, we our and strong deposit new forward at good leverage. while deliver to capital operating growth positive levels you. day. and committed credit the look leveraging fee future with these achieved growth During past continuing We while the upcoming in events. to Thank to trends remain quality. have speaking investor of a near you We one expense management Please maintaining

WesBanco (WSBC) 24 Jan 242023 Q4 Earnings call transcript