WSBC - Earnings call transcript Q2 2024

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Operator

Good morning, and welcome to the WesBanco, Inc.'s Second Quarter 2024 Earnings and Proposed Merger 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 of Investor Relations. Please go ahead.

John H. Iannone

Thank you. Good morning, and welcome to WesBanco, Inc.'s second quarter 2024 earnings and proposed merger with Premier Financial Corporation conference call. Leading the call today are Jeff Jackson, president and Chief Executive Officer; and Dan Weiss, Senior Executive Vice President and Chief Financial Officer. Today's call, an archive of which will be available on our website for 1-year, contains forward-looking information, including certain plans, expectations, goals and projections and including statements about the benefits of the proposed merger between WesBanco, Inc. which to Corporation, and assumptions, Financial uncertainties. Premier are numerous subject risks and

on only the wesbanco.com. filings to be related SEC of Investor to to section we filed addition, would to in our reconciliations are which In and over presentations other are investor measures and website, will materials, about speak materials. These information of now included as X-K of as non-GAAP statements Jeff. call our of as undertake to XXXX, All XX, available statements Premier Forms referencing no as materials merger-related July and our like and update Cautionary posted the Jeff? earnings wesbanco.com. both Relations this WesBanco and and parts turn obligation were today well them. I

Jeffrey Jackson

Thanks, is morning. exciting day momentous This and for WesBanco. and good an

quarter Ohio. our billion an Financial also to services Defiance, in in billion second strong an addition more economies scale $X pro a create assets, partner Premier and almost results, In with profitability with forma to of $XX Corp, regional than community-focused agreement This metrics. will we financial merger headquartered merge bank significant reporting announced asset

the call investments and regional valued, metrics. Recognition And for workplaces on strong quality outlook by our focus maintaining in Premier. continued merger control, continued characterized current takeaways fostering our announced into positive are call, presentations: strategic employees our where also deposit workplace our success. the we review a a you one credit financial maintained and secure of quarter our with from and WesBanco with XXXX, as favorable to our finally, XXXX succeed. on second the momentum of will services As of standard focus cost is institution. WesBanco costs stronger its empowered our a and provide results sustained results, noticed, a one in quarter the to loan review second on merger America's while deposit discretionary loan long-term controlling diligent XXXX by other and earnings proposed we motivated environment, presentation. transformation solid filed Newsweek today's making X and sustained growth, On We growth. greatest for the company feel Key

like and provide on While details strategy, I definitive of our Premier, second our a to continued great will cultural execution evidence agreement announcement more Dan of merger now current call is as with our results a Weiss, Premier for solid turn over growth and strategic, for long-term is quarter CFO, the financial XXXX. outlook financial our on update fit. I to Dan? would the brief our

Daniel Weiss

income highlight year-over-year strong morning. the Thanks, lower and fee with Jeff, well loan second the a as good growth, as maintain and quarter, accomplishments solid and pleased To we're from run expense we rate. growth deposit few achieved

compared in to For ending to $XX.X net income $XX.X net reported when of diluted excluding or and $XX.X restructuring expenses, the quarter June per million year the million available GAAP diluted income share, $X.XX $X.XX common XX, share, or we period. as merger-related or prior was per after-tax per and XXXX, share $X.XX million shareholders

million macroeconomic quarter's and we provision strategy. due our related loan, loan recognized to C&I million in a $XX.X branch losses, to second X expense impacted factors The on our changes credit by optimization restructuring reserve were for growth, results strong specific in also a $X.X and

year-over-year which total grew billion, have XX% of our the first and $XX.X billion, by quarter $XX For driven time annualized. portfolio linked XX% in loans assets history, eclipsed

in credit of throughout have from -- portfolio consistent total historical from losses up June perspective in down loan June strategy total quality of loans shift, and the experienced total XX allowance XX% year $XX.X X.X% respectively. Credit within loan growth, at resulted was specific deposits of percentages last I as a today, X.XX% credit mix Our is were XX, loan quarter, to industry representing loan million, pace assumption a at X% strong from quarters. of pipeline and C&I continues but XXXX, December our composition $XXX mentioned, higher and consistent commercial key range with of unemployment to for from losses provision a and total approximately X-plus million. individual reserve due growth a and in loan which, total an with range than to And at to points loans, but C&I X banker stability continues and that for annualized XX.X%, billion XX, deposits metrics commercial low energy years. The was deposits remained benefit for increased a and up ago. Deposits renewable The basis a office year-over-year pandemic, hiring remain $XX.X commercial percentage our X.X% totaled production slower some the loan. million as noninterest-bearing total reserved prior $X.X of deposits quarter experience prior fully the as This of to approximately second demand the continues XXXX. XX% deposits and linked a

million from lower to the higher gains the quarter a which quarter, growth. Noninterest earning improvement prior valuation deposit costs. as tier Our loan income, of or yields interest deposit accounts loan margin X the money by the was income the growth benefit as market of funding net from net well real due loan X.XX% other sequentially, quarter assets basis other the owned period. by the growth first $XX.X the remix of on prior And funded deposits continues funding XXXX, X.X% estate second first NIM year, rates in experienced for increased higher $XXX,XXX noninterest-bearing driven quarter as second assets. The and into offset swap fee primarily in points and higher outpaced year on somewhat higher and reflect that to fully costs decreased, we of and higher certificate higher income

second XXXX, a X.X% for which within restructuring are months the roughly June merger-related quarter noninterest increase and and Excluding of expense is XX, the related $XX.X due to repeat. equipment million, primarily year-over-year, salary expenses expected not operating expense, stock-based other expense increases expenses, acceleration salary in and to software ended to compensation totaled the X $XXX,XXX expenses. Included and

losses higher believe also other isolated We in future. Reg expenses not within that experienced nature we recognized E repeat also are the in to expected and

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

the that, we've economic charge-offs mostly summer be campaign. marketing expect the this a and best serve not the is In majority currently you, growth, to be impact credit second somewhat Turning XX and XXXX, third based on in approximately modeled with in in and will higher the continue merit annual X faster increases Jeff. on we customer XX% XXXX XXs in outlook. fund range. And significant to with be tax we to have a financial consistent effective cuts. The mid- current savings expenses quarter the as lastly, loan X in preferences center the by environment, a consolidate. quarter while and million, will quarter locations to continued remain trends, second the I'll to the growth, should in anticipate followed of upon turn are our due to cuts while $X.X network by The rate operating cuts in it expenses XXXX. And the second to the results timing relatively as relatively which we've income to growth losses to provision distribution deposit of dependent optimal consistent anticipate of our at deposits. We factors interest a pace come midyear million ] mid-XX% $X low lower customers. loan and [ year, result, impacted We've quarter, restructuring reprice as in to toward well quarter late to realized the to modeling And than back third to to mostly range, to and dependent the of for fourth assets to modeled noninterest rate upon back more upper will remain be than half ensure as recognized the to quarter begin the net our review are of to be the expected which quarter identified margin with

Jeffrey Jackson

Thanks, Dan.

Our capabilities, digital our focused revenue portfolio, strategy on expansion. service banking nearly These is thanks a for diversified company growth have several distinct core and guided long-term loan key funding pillars strong, principles XXX a to pillars: franchise that strategies, building enhancing X foundational years. stand and advantage

leverage, first on investments. focus is delivering while making growth-oriented our The positive risk-prevention unwavering and operating necessary

to create service history portfolio year-old of brings that billion share The transformational under $X.X strong The our models strong quality, a diversified is credit day with community-focused approximately and and $X.X a proposed assets foundation. together billion advisory. on financial That I'm wealth with second loan business details extremely institution community-based and a to and X financial And wealth with with pleased risk augments WesBanco's cultures high-quality of Premier built you our to a partner. Premier of compatible division with highly regional our sound is management management merger XXX-plus institutions is culture management today. compliance. This more and commitment in business.

will additional lending market of wealth to merger, have bank financial accomplished know by Michigan. From synergies expanded the anticipate of possible. gotten their driven of to optimistic increased best propel significant around presence This customers be XX-plus and delivery banking contiguous net accretion the provide XXXX number on as and and we largest to the our philosophy and upside, array Indiana customers margin excited and that to with performance, in as ourselves percent, position broader providing cultural are management footprint, our State companies organization billion solutions. We based family, deposit management makes the providing for including financial proposed interest cost entrance scale. This EPS employee we As in to share with will and capabilities enhancing of and can $XX and than Through scale, combination complementary deliver customer-centric customer communities, WesBanco fit focus stakeholders. Further, a them to us eighth services treasury on valuation will are in of as welcome a fronts success we and we into enhanced including commercial have our communities merger our little on strong and geographic and the Premier, improved more while existing economies a value serve. product improvement. a the we a share, disruption assets, our combined bring both of we excellent sense with an Ohio of organizing position standpoint, services

common XX.X%. Further, return XXX our X.XX%. up XX to basis tangible average X.Xx for valuation XXXX improving improvement market XX% margin net to upside, in improving We to average XX basis forma also multiple and anticipate assets equity see on priced increase to pro a pro basis points points points interest forma on metrics, including meaningful earnings cap. X.X% profitability opportunities of we and in Return

As the in in financials of banks of billion. On a sheet of a in closing, common in group back turn to Dan forma proposed capital half in deposits, pro billion and can be merger. over driving presentation, ratio to profitability forma $XX with $XX to billion risk-based strong our Dan? like the the equity pro with a in loans, we seen Mid-Atlantic, assets of and the between call metrics top billion, total would at of total and key $XX very put $X billion and peer will balance billion us the of tangible the review assets, some have terms XX.X%. I $XX Southeast, merger headquartered the Midwest $XX basis

Daniel Weiss

Jeff. Thanks,

very well stable a As group. similar both in WesBanco to you complements base WesBanco deposit diverse as see the Premier comparable quality that and with peer metrics the portfolio and as its credit is merger can loan granular to presentation,

nearly XX diligence wealth a During IT. commercial Premier WesBanco and management, due comprehensive on operations, of focus retail months, performed HR, risk the management with last and employees couple review banking, of a facilities,

WesBanco of of review interest shares majority as at well the valuation of stock a exchange a credit deal value reviewed Premier's book marks. This of portfolio hired XX% tangible per to with $XXX of third-party loan assist firm, with over associated representing in pro XXXX, forma also services WesBanco of in years. over the as X XX%, approximately back XXX% accretion for stock company. XX% is of approximately the deal less of on share and and dilution at Premier ratio a combined the book valued is commercial earnings tangible an fixed value million ultimately each We share X.XX than The earn

the but approximately is raised merger XX% maintain deposit to equity will well of transaction are core platform, merger in among to to conversion. Onetime expenses marks XXXX employment we in were highlight XX% assumptions, prevention, of and We same and common AML, $XX share while thereafter. approvals. To will anticipate projections the Financial Premier earnings are and saves value appointed based changes XX%, dilution defense to and during BSA, integration are per rate primarily levels. There Board million, increasing team, system we've approximately fees customary neutral. with earnings conjunction directors $XX order earned our agreements, be the compliance, the Premier's be benefit key of additions the consensus and intangible, In termination professional X% transaction, use agreement, excluding of and on require $XXX XXX% base core expense charges, no million yesterday's when do XXXX severance, million like with shareholder contract realized estimates anticipate and both which integration Importantly, executive of both accretion thereafter. as leadership and strong regulatory capital companies Corporation BSA/AML in and Directors. book tangible or others, back key loan driven definitive by the functions anticipated X fraud XXXX the some of retention line review, signed WesBanco the through Further, the current merger With will expenses. to cost

period. over to network and We a assumed XX-year $XX also million amortized invest be into signage, upgrades branch expect branch about upgrades the to between ATM roughly

conservative than when in $XXX under the to Our a public came intangible $XXX higher deposits, of or to at deposits model with credit losses, and million mark funds. the book assumes is excluding X.X% X.X% and roughly be $XXX which or about Premier's million, allowance mark or for of XX% credit XX% roughly million time and just approximately deposit is interest PCD X% non-PCD. The to core also XX% estimated

with assumptions, other it portfolio, relates do portfolio we align of to As investment with million expect profile to our roughly down that securities the sell to within used pay better the $XXX proceeds borrowings. to

leverage, to at interest profitability pay to the low and raise group of ratio, XX% and the we we all strong We of use capital anticipate an capital the XX% to the from proceeds the better metrics loan-to-deposit successful plan exit efficiency then borrowings. back closing of finally, and you. total hedges X.X% cash expect transaction, And down XX.X% capital also CETX of close. Upon risk-based which Premier's to approximate are flow X.X% ratio, ratio median. Jeff, it enhanced than XXXX net X.XX% margin peer I'll turn ratios

Jeffrey Jackson

Dan. Thanks,

As benefits. well significant truly is of Premier a for this WesBanco as a long-term heard, number transformational with just you as synergies and deal

not footprints eighth in respective to complement the nicely, Our and increased becoming other efficiencies, mention providing largest each scale bank Ohio.

performance shareholders. well continuity boosted XXXX pro upside. communities meaningful financial with potential and combination financial our as and significantly and cultures sound highly as The in customers, companies metrics valuation Our our forma are ensuring compatible, familiarity of X strong employees, provides for improvement

a all successful working Lastly, expectation history benefit stakeholders. of on transition. synergies give the demonstrated we of every we success us that together acquisitions begin These as have

your We ready are would instructions? review to now please Operator, questions. you the take

Operator

Instructions] question Capital [Operator from The Markets. Shepard first with Karl comes RBC

Karl Shepard

why strong announcement, about this and are there. know cultural the And such Premier that of talk is better? start process getting Can on you I to the to Congrats confident guess a you fit?

Jeffrey Jackson

Sure.

So several for we've Premier known years.

back to we're similar the lot acquiring and our a synergies kind the rural January at with talk almost had each peers started process, feels ourselves characteristics. because we metro as of some smaller realized of It of version AOBA other, and talking so And we of like the markets. conference. of And talk and a I Gary we in got

and of And perspective. January, from so and we then diligence Hileman took the our kind myself process met end Criss February, due in Chairman, of from there started formally and a with Chris Don really off

members executives to many past. of go continue our our specifically Banking key executives, as realized Officer, it, worked the so also employees, had in lot we Chief with Board Zatta, And and we their Jay through a of that

You familiar know and in their and their with so of CEO, Todd people may our a Toledo, also them as and franchise well. Clossin, spent previous Cleveland very of and some time lot was

that where so you like like we also perspective And we of at jobs like fit cultural perspective we feel how the a granular look kind and perspective, as this. Ohio, everybody that's great started, just base C&I, the kind the growth deposit from was of really in from about at Northern continue, goes or it great it's there, to felt their we and America, to if a think and is growth we a political you look really rural trying really landscape, we just manufacturing Michigan markets Ohio about whether it on bring when a back and

Karl Shepard

have a one to And as Are the helpful. kind bit need I larger. read That's the the this there then $XX infrastructure is but little make of you company Okay. investments know done in to a number of in follow-up, be past, assets billion deals to this a guys cost? of to close alongside you

Jeffrey Jackson

ago. to working a We investments, there's through lot the think went We've core IBS, to that through we're Premier system. is kind of billion. on this. don't I going We're make be of also been on couple $XX of a FIS, years change

as the use We BSA/AML also same well. system

within side, work currently at in to be there are lot the we're side. I adding risk Premier people for at that side looking and would is people think of And we on so the group ready a that. make them integrating model, and compliance that our and management taking sure just where would significant the we we have risk the just And that investments on add do

Operator

Mealor KBW. from with next question comes The Catherine

Catherine Mealor

deal. this on Congrats

Jeffrey Jackson

Catherine. Thanks,

Catherine Mealor

like I wanted question to and can out the thinking talk It balance little will terms another more I thoughts putting basis put assume, X you in sheet of merger. about the acquisition know looks liability a more the to what sensitivity, of margin combined the like after pro holistically, maybe you, us, I just together. make the Can this of a just forma sensitivity. us -- feels perhaps talk marks you've your But sensitive. sheets on you bit on broadly asset kind on liability kind balance

of kind what of first, come, just just And balance upside longer so margin then there? in to And start risk the environment? and Fed-cutting like take maybe the could that looks rate to from maybe you what cuts we get kind if sheet see once the the

Daniel Weiss

Yes, take that. Catherine, and I'll go ahead

we If you basis, basis stand-alone slightly slightly about a on asset think liability Premier us sensitive. sensitive. a And stand-alone are on is

a of you rate, about think I less with we months. continue and sensitive our expect another heavier kind the rate rate kind would XX% little rate the to fixed whereas of reprices adjustable, mix around the ours whenever are loan be standpoint. But to on XX% about right asset variable fixed rate, fixed -- heavy from portfolio XX% book on and of variable with of we the they're that we so So bit X their X, of every is XX% the side, think XX% rate terms in versus if fixed is variable slightly combine or side, adjustable

here about extent and my in asset we -- we No a question are X combined commentary, expect static think both in and But that more cuts. X yes, rate environment. think 'XX. 'XX in So I would the from that if to benefit basis we're of longer slightly certainly, continue on sensitive as cuts, to be going in obviously, shock But rate to I kind that. prepared about see banks said term, cuts we we

Operator

comes with question next from Stephens. The Russell Gunther

Russell Elliott Gunther

address bit raise ], talk think forma looking raised pro to guys XX about guys the kind concentration you pro [ Could the more around capital, to decision the for you CRE particularly a and I of amount XXX. CETX? forma also relative you're

comfort Just your helpful thoughts pro those is of your where terms to ratios? get forma in level with

Daniel Weiss

Sure, Yes. Russell.

our raise was capital amount So the evaluating dilution capital factor really a big the of determining to us relative ratio. in to

to were leverage X.X%. point, and ratio of a to CETX about So basis leverage. when think we and your want we CETX consolidated a -- hold above a on targeting above We X.X%

concentration internally. And basis, out, obviously guidelines forma So well of regulatory pro just from are important think we we then to XXX% about that see standpoint, us we That on to you on it's you cognizant CRE and if be kind just a continue basis, the as pointed of that forma the thresholds a for pro those was above under ratio. as XXX%. can evaluate of that set to want

and an of million of, tell very of evaluating or it, we $XXX marks, we We've evaluation is the would got concentration we here assumed down $XX would we'd explore One exiting. like that million the have in based identified the bank have model in push risk-based more model, in of to that million you push so in then level, the and loan through is total the course, also of so down. And capital things detailed terms of down at the portfolio capital CRE about to call portfolio, do our on further $XXX was assumed, up, that which that in the raise bank. it's terms a the we that what bottoms I credit

combine that pro on you basis. forma with came get those items, we So that XXX you up -- kind to a of

Russell Elliott Gunther

get I the It and thoughts of to forma expect 'XX that trend there. that as just as accounting, how would start then be thinking pro magnitude on follow-up, my you just throughout And your Okay. would appreciate guide. we helpful the the 'XX? the about thoughts and -- appreciate to purchase NIM,

Daniel Weiss

Sure.

the portfolio. in those accretion, of make X-year -- came outside accretion. We valuation $XX bit terms little actual prepare to deals We've assumed kind the see assumption million. an that non-PCD deal, might mark the color accretion marks book line in you about and the deck, see the firm, we So used an where loan us the it's portfolio that to of of a for got had $XXX size actually just mark this a -- of on we the that here. about rate of we maybe a million, the are you can we more And didn't third-party within but marks provide given if we right of and on just portfolio. the around estimating in over basically million accretion the about after-tax of of those straight think actually saw What life out of other a that makeup -- determine was accretion kind the X. And of was basis, $XX we year that the

As in is bit a you to X Premier know, little heavier that space. X

think of a -- of their a mortgages, were couple rates so family And fixed years the that lot A pretty X ago, that lot was when X mortgage to originated boom low. longer-term rate of during

we and the months. X has accretion think bit if longer X the on of about of average little that particularly book, It's about timing duration, that rate do XX longer think actually we the to a weighted So a that, family life.

years. X it, So call

to our books a X.X% XX-year X.X%, it on at that -- that originated books were today bit accretion maybe be also in a call come around And a on was fixed ago a that, or going to mortgages so on of life what of -- our about years that will And see bit there's X other you lot the lower, they're books in quite a X%. do these recognized you rate when we deals. once originated think terms that think rate think on the of we than and longer for marked coming XX-year opportunity is there might we're

if And you're unlikely these just of -- risk, the rate so accretion recognizing would fixed loans. pretty say, of life over individual, that will, we prepayment benefit mortgage. as if the that low refinance to And X.X% you have of can yield because risk, there's an a you I

And so to we going quite think sticky on be and books time. for some that, the that's pretty

Operator

of from is question Catherine next Our Mealor KBW.

Catherine Mealor

was I asking back. was I my needed I'm when follow-up.

it like letting me to that back jump book. you Premier's looks to going was had you margin going bond in. One some down pay to of in So And the it borrowing. you're thank come follow-up for I with the mentioned paydown is

cash be you proceeds is the of forward? to loan used excess it for would put that moving going back into securities remainder the expect For in that, portfolio? just Or to flow, growth

Daniel Weiss

Yes.

both cash, down would the through So pay security the wholesale raised excess sale their plan on well raise. as borrowings, capital the the be to cash the as

Obviously, imagine, we're August, will also So can that's $XXX about total. help $XXX here we're which million a million as paying kind our as you at. borrowings. own margin where our be applied down But will of, little in yes, in FHLB

Catherine Mealor

Okay.

down? total a So of in million borrowings $XXX pay

Daniel Weiss

Yes, correct. That's right.

Catherine Mealor

Great. then Can where disclosed was price? Okay. one you or capital at -- on have follow-up you the capital raised question. And other what the

Daniel Weiss

Yes, that I release, is that's in disclosed, Catherine. That's $XX.XX. merger announcement in joint means, the was the -- that and

Operator

from of Next question David Bishop Hovde Group. comes

David Bishop

fee the as income. overlaying And Or numbers? the ] that here? I do on fee are that deal to opportunities generating you well. good on the late past, [ as from of some areas can is Congrats swap products, similarly had in in income know Any Jeff, some the there? you guys have pretty often there good side success

Jeffrey Jackson

Yes.

-- as relates lot of relates treasury rolled with to a I think there's swaps we've it products. new Premier out a of opportunities as it lot to

at been haven't we're look maybe that that going side those bigger on relationships past. we bring as to the to becoming geography, think bigger balance a I providing C&I sheet at a able they do at we products and to bank, taking can that that the look full

I there's and we portfolio, well robust built as wealth and there. lot trust The -- other within opportunity They I but there's and have growth thing say a that business, nice believe good-sized would very wealth in some a of treasury a have footprint. do believe is we

David Bishop

side, any maybe the maybe complement doing then on the loan what on Got that conversely, WesBanco's it. you're And business new on? legacy lines

Jeffrey Jackson

don't ag, there's and that C&I, in have. think mean bread lending, just in ag. business that, I lines They a levels. than about other butter, they not I really portfolios any But very couple us. new similar $XXX -- they're great of would We're your CRE smaller to million. they're credit I like have said,

kind it's that again, of portfolios like we've once and their be us feel mini done acquiring of able them work and like, version grow feel appreciate a we with so And territories. the like those we'll in to really we're

thing you Columbus. we presence just as probably have Cleveland I a would and know, other obviously, note The Akron-Canton good LPOs and in in

I just with growth But there side. see growth So this us like our markets. is to nice feel we'll be helps the overall, that in some those loan from able really

Operator

Instructions] [Operator from Daniel next Cardenas Scott. Janney Montgomery comes question The with

Daniel Cardenas

transaction do question, it, when the closing? a perhaps It's but you anticipate on quick I missed

Jeffrey Jackson

We and would discussions the about quarter regulators anticipate year. application, of feel first our next submitting probably We've had preliminary first we're quarter obviously next with good good but year. targeting

Daniel Cardenas

terms Perfect. of that in too into that? M&A? And out soon then transaction gets any any the maybe through to is Michigan Or desire build to market, consider that further the just

Jeffrey Jackson

think you them Kentucky growth earnings, have those open to explore growth to would great and vastly always different our just Ohio, great we're that second markets partner. Maryland. at that right more. growth loan all the in, think about new briefly loan states, banking, And if We're have of look brand the right market Tennessee, obviously being opportunity we to I back you X -- competitors. and on had in if Michigan But I we real going X quarter had different think we

X different we step great win I grow against loans. franchise, it take different look our we're markets to when compete that our makes vastly feel and so in business doing And a me in back competitors culture, and and our can continue really what at

be -- think should successful say that to we could that in So I me, Michigan. very I believe

and forward the road. then I makes think players, the that's But strategic down to know the to it getting it's if just moving getting markets sense there. know potentially

Operator

from Bishop David with of Hovde comes follow-up. question a Next Group

David Bishop

Yes.

follow-up. Just a quick

from operating expense be the Any I you mentioned think projects dollar in in inflationary on way third some matter pressure quarter. expecting the there frame some could near-term? you're to side of increase the sort percentage the

Daniel Weiss

of our beginning inflationary one. -- rate. salary run then is August. our in as on be the just would only expect and typical this say, I'll -- quarter. hourly the increases, for We're pressure June, expense would in not the midyear I we Dan. David, the take which really we about merit of beginning would in that occur that the increase folks third The But expecting think the annual at

in anticipating advantage I expense add would that some there. but purposeful pressure that efforts. [ not no, that's we ], prepared commentary, think I take to we some have we -- and So also opportunities really my marketing of gathering any mentioned deposit

So expected have some actually, did items quarter we're pretty and not given anticipated that rate we optimistic running expense that expenses about this our through to not were that were repeat. run

David Bishop

preamble. as you -- into Any Jeff, sight And loan the it. know you the sort Got highlighted or I exit sort the into insight deposit at pipeline commercial pipeline the of then, line of of quarter?

Jeffrey Jackson

We're pretty and to pipeline. a keep strong consumer deposit Yes. commercial deposit continuing

very loan quarter like pipeline you feel strong is last say lot a pipeline. quarter, But we have in third payments would the nice still that be as had really growth would should a of the say down slightly tax quarter. I second us, is quarter, deposit things For may deposit I quarter. the slowed and third us

Operator

Our Navas next D.A. from Manuel comes with question Davidson.

Manuel Navas

talk about paying You sheet about you potential you're for talked restructuring; borrowings. the post down loan growth balance this transaction? Can

more benefits have little also of liquidity. bit can just a I want the that more? side You have to discussed

Jeffrey Jackson

Sure.

loan continue at this levels think we to if -- those things products to our be these transaction growth, we and new is I some growth think annualized once out I roll goes look think into and mid and as merger done. And through, do additional markets I incredibly it I you we for the will in quarter. positioned get the of growth. -- I think quarter once well about upper But don't basis at on growth. second digits single believe you're XX% expect loan then that I third an fourth move

to So continue even could model be upper loan at I mid- single-digit to would better. growth and possibly

Manuel Navas

Does Is types in the already loans? CRE contemplated going mix expectations or concentration of for certain your forward? your that desire change pipeline of kind

Jeffrey Jackson

concentration back, CRE pretty tens, time low $XXX of rates of contemplated think rates on we've could Yes, does come some if that thing close, and then accretion not our CRE the marks then because in But kind million would projects marks, this several if selective It make which close. minimum the quickly. And it's now fall us obviously us other of depending already see the the between interest make expectations. more the raised ratio on, I this lower time. obviously we particular builds at of more and some interest by back to of

Manuel Navas

Okay. I appreciate network. in branch comments Premier's expand just that. investing about on that Shifting over your to Could bit? you a little

Daniel Weiss

Yes. Manuel, I can take that.

$XX would branch signage, the include ATMs, are capitalized you really planned some we've of and kind on about what upgrades. branches. that provide also rebranding upgrading will, if got We're XX also expenses kind of the is that in to So million

Manuel Navas

that. appreciate I

Operator

session. conference back concludes to I Jackson Jeff our closing to any like for over would question-and-answer remarks. turn That the

Jeffrey Jackson

us you Thank for joining today.

the this fee costs we of with partner solid strong credit success. We embarked capital deposit to and into solid of WesBanco strong operational and an a in stronger past track levels and upcoming institution. WesBanco for day. Have a our ideal you growth good execution quarter, regional is events. of and on performance income financial one Premier, quality, history of During Thank manage on our transformation operational and look loan, strategies, the merger a future growth, record speaking as investor maintain forward near a and we have you. services at and achieved

Operator

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

You may disconnect. now

WesBanco (WSBC) 26 Jul 242024 Q2 Earnings call transcript