WSBC - Earnings call transcript Q3 2024

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Operator

Hello, and welcome to the WesBanco Third Quarter 2024 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 H. Iannone

Thank you. Good afternoon, and welcome to WesBanco, Inc.'s Third Quarter 2024 Earnings Conference Call. are Weiss, President and Senior Officer. today Officer; Chief Chief call Dan and Executive the Jeff and Jackson, Executive Financial Leading Vice President call, in about well SEC this available and reconciliations afternoon, will X Today's as measures as contains related information of filings are materials non-GAAP materials. website yesterday included year, statements other our earnings and for be information. Cautionary forward-looking of archive an our our on investor which issued Relations section These our available materials the Investor are wesbanco.com. of on website, All only WesBanco of XX, undertakes October no statements them. as speak XXXX, obligation and to update would call I to like now turn over to the Jeff. Jeff?

Jeffrey Jackson

for good and fourth from takeaways call and John, focused our an with quarter. strong today call, quarter the strong growth deposit quality. We achieve credit are: afternoon. combined Thanks, on outlook positive we efficiency growth, provide will organic operations review and and the On operating today's to leverage. solid our loan update Key results XXXX on continued third current gains and

transformative third robust Our WesBanco and in sheet. strengthen include Financial momentum balance track, loan on and higher strategic strong marked shareholder remains the regulatory our Corp. and the driven that pending paydown continue approvals. by These actions borrowings. to of growth of cost deposit quarter acquisition Premier

Over deposits and markets strategies. the by by loans continued last and of year, our teams, WesBanco $X.X $XXX the billion has grown strength million, reflecting

strong available ratio story earnings, X.XX%. restructuring commercial this was our continued $XXX per growth For growth growth position our and the for deposit data future for teams. points banks of we common quarter ending growth annualized monthly quarter-over-quarter share key our as was year-over-year double excluding loan strong X%. Impressively, raised We strategies to capital the basis. total and XX% the increased net both during expenses loan deposit of common outperformed a to and annualized $X.XX. million basis successfully and quarter quarter-over-quarter quarter growth. Reflecting significantly all $XX.X of to the for September sequential XXXX, HA XXX equity and and quarter of on loan tangible third the XX, common demonstrate shareholders commercial equity and domestically growth deposit income, success points The raise our of WesBanco chartered million earnings proof These of reported

Summer helping the our XX% On great was deposit We annualized a X,XXX One partnership campaign marketing our for deposit teams. strategy thanks than the gathering commercial, WesBanco to to side, our drive One recent well-received opened named of our more consumer growth. accounts, success, retail, and new between account

total engaging XX Additionally, deposits and or X% our ongoing teams grew during by current success their reflecting in last customers. $XXX prospective million months, the

teams. Total year-over-year On X% and side, XX% and real by loans lending the estate. commercial third quarter-over-quarter on sequentially our X% quarter commercial was and loan residential year-over-year by commercial driven again, loan annualized XX% increased an annualized, growth driven basis,

X points newest accounted for Tennessee LPO success strategy. XX% are of Chattanooga, Our by growth Nashville the of loan These offices. and commercial led nearly year-to-date, of the loan proof our our offices production

management a September down pipeline, of year-end more fourth of quarter the another to million, delivering of from growth. Based deposits, ago, WesBanco strong success efforts partner, center retail, organization. A notable bankers' products set of solutions. including A reduction occurred bankers, treasury growth the when efforts cost to Their in thanks our same collaborative issues, our ancillary position. up our XX along loan the relationship their we a August have as management in line X.X%. growth further rate having observed year our a with quarter spanning number approximately the from great annual loan XX them helping a continued is we the as for loan relationship options achieved note client this multiple their Our Since compound manager on into services solid makes but during expect work teams client's in and position and and as loan an was our with line and managing capital X-figure productivity financial example These pipeline gains banking an business commercial current fostering their understanding our that accounts this services banking, deposit of client, of capital. banking strong customers team's great success resulted in pipeline talented wealth our the as growth relationship-focused loan impressive growth and of team existing XXXX, with a and and comprehensive solid improvement opening was credit $XXX important achieved and crafting out recruiting. What lasting a converted to difficulty tailored in on roughly It's in commercial June mission with even solutions, slightly prosperity balances, financial educating we well. solution. that of credit of

our for and deep strengthened of the resulted relationship WesBanco. in both and the clients' the needs client a client approach Our personalized understanding and winning solution

credit quality. achieving underwriting and we legacy and are standards of sacrificing Our are our strong company, growth credit loan a without our

size a level seen presentation which, for consistent last with decreased the for as be Our is the total have assets, to loans banks $XX X.XX% remained and and less nonperforming percent assets a than our half of in as can range quarters. in $XX loans classified between X billion. Criticized asset all billion earnings of supplemental total

loans. X.XX% the third total increased to points of past due While loans basis roughly XX total during quarter,

end We the the expect resolved by fourth these quarter. to of loans be

Premier Financial. pending to Turning acquisition of our

necessary first stronger all communities. of services the all we filings and Premier's and legacy to our the momentum, initial larger financial support on shareholder to community bring track acquisition, the as accelerate bank a and of benefit approvals. transformative our applications for this to together, as the with positive filed SEC expect regulatory build shareholder on engagement schedule quarter have organization and regulatory well pending resources of We remain meetings closing, Through a

we and workplace in proud of where opportunities Lastly, I greatest purpose culture again to and belonging our In so America's were like serve for an quarter We When the members our of that workplaces one by performance our a Weiss, rating, our every Newsweek's X do been CFO, people we By our a recognized of Newsweek. update results to better the X-star am families one employees well-being workplace, parents a communities. I WesBanco named team businesses and August, highest and for a making to just thrive, the has turn would our and third to supportive on community and our Dan of organization Dan? now were vision over outlook mark. for families place quarter. enhance and broader building thrive. contribute fostering banks financial for call receive for current to family-friendly our we success thrive. and fourth

Daniel Weiss

and Thanks, afternoon. Jeff, good

For of growth and per September was per third to effectively costs. XX, GAAP quarter's and when million $X.XX $XX.X available common the interest personnel share. and excluding the $XXX of period. To or sequentially prior $XX.X $XX.X quarter growth, of ending share compared per deposit improved expenses, discretionary income after-tax both XXXX, $X.XX raised common And net million restructuring of shareholders accomplishments, $X.XX we year-over-year future net we million net income reported or few to year or as in merger-related strong income managed million achieved in and a share the and highlight support loan equity and

increase despite over All an linked per resulted earnings in share raise. a capital the share in of second the this $X.XX quarter in count from increase

total loans $X.X $XX.X As of September of billion. portfolio securities XX, included and assets total total billion $XX.X billion of of

As up $X about payoffs teams. billion expected approximately a Jeff XX be our commercial to future we in in year composition and by versus pace billion, at payoffs growth. Commercial estate Deposits already in at pipeline, reflected an over upwards. quarters next campaigns. The but to the and have gathering the repriced compared X.X% of operating level deposits nearly to as remained total XX growth driven $XXX shift summer $XXX mentioned, success quarter annualized to months, prior normal the XX.X% million our range of to historically $XX.X which continue was slower unfunded linked deposits low more environment. of levels, mix loan were robust and experienced most as year-to-date prior LCD totaled experience retention loan in residential strong million a fund real annual CRE than the and lending With deposit and continues commitments a optimistic

experienced growth strong rate typical CDs. during in a a we environment, As have higher

historical assumptions quarter quality the them, we realized key quarter-over-quarter total X.X% from of when end metrics low increased to due for loans, remained a and allowance The adjustments. annualized. Credit loans years. the consistent higher stability perspective continues excluding to range X-plus credit the deposit and and of within X.X% the year-over-year other X.XX% have However, primarily of as a at through unemployment qualitative portfolio losses, slightly last total growth

The increased Loan that mature fees million margin year. increased with income a combined from of quarter. brokerage should to $X.X billion raised points of of $X.X Federal approximately from Home would compared third the valuation management million. deposit quarter. Of growth a the the an XX this higher second of during funding which exceeding X.X% negative deposits a X period point appreciation. remained equity Bank at adjustment gain linked excluding margin including third the to of brokerage lower reflected over growth decrease as last The to XXXX higher increased deposit XX% Home account costs, the market $X.X the fair year-over-year, billion, for and prior Federal year-to-date value income yields also as year margin basis securities to of income by third which quarter both and assets basis stable third levels loan $XXX paydown was and our X.XX% When under quarter quarter. Noninterest $X.X securities growth the borrowings benefit loan margin fourth points values and driven rate net Loan in XXXX billion Bank of $XX.X costs, quarter interest both adjustments, to they $XX.X and Total to year the compared organic swap Trust and record the totaled rates. fee the from X% lower of by of quarter funding have as the $XXX while an of X.X% X.XX% benefited the these basis and increase due reprice and rose second from of million a XXX during borrowings, compared of quarter noninterest-bearing net driven million million, revenue were noninterest average

to and focused operating achieve a personnel costs and discretionary organic our key positive are managing growth We efficiency and on are gains leverage component.

a million, due we operating Excluding to expenses, with insurance compared other noninterest expenses lower mortgage higher growth models, staffing operating Employee increase of the period. staffing X the year in normal ATM lower upgrades, year restructuring offset expense due $XXX,XXX software loan levels for support increases. in year-over-year to higher lower prior equipment prior $XXX,XXX primarily increases decreased expense expenses. Other the health year. Salaries year ended in $XX.X equipment benefits the primarily driven and fees increased September wages compared costs as expenses levels miscellaneous $X.X compensation know, and branch and and and by to and prior the impact costs due the other XX, expenses by and staffing $X merit partially associated million, increased to throughout improvements were reflecting due totaled the X% and efficiency prior months software merger-related XXXX, million, to phased in of which, and period to decreased

$XXX enhanced million on capital equity We structure announcement the capital. successfully in acquisition the of our of raising August Premier X Financial. to pending conjunction Turning common of with through

to capital strong equity strong result, and well-capitalized have tangible remained position capital above peers, we've a the ratios already equity compared while demonstrated from regulatory standards. applicable our earnings, Our as the favorable raise, benefited levels

the our XXXX during we quarter, call. outlook to fourth provide Turning for and outlook January will our the please that note

results significant a X not cuts rate in cuts additional on is modeling XXXX and are X due in expected by which more to to We November followed timing impact have Fed XXXX. December,

be costs to repriced continue We quarter's the to anticipate branches with margin as in pace ensure trends. at the noninterest customers. provision net during our dependent approximately annual serve improve will upon is the finally, our locations majority anticipated remain will best the to upper earlier instructions? $X for to The to of losses consolidated consistent savings a previously assets. We growth loan million, modestly distribution the income model mostly this And faster XX.X% we're credit X.XXs expense be quarter ready our economic be XXXX. which funding should fourth noninterest down than our review the take factors and effective you interest XX disclosed, tax nearby month year. Operator, for third successfully please and questions. now And we in the to Would optimal charge-offs, the relatively rate and range in as realized

Operator

comes Daniel Today's from with James. Tamayo first question Instructions] [Operator Raymond

Daniel Tamayo

as Maybe income. margin first, the interest it net relates on to

You talked could remind to a talked XXXX upper little the you but quarter, next baking just bit in out the the cuts. about fourth expansion if coming us, guidance Maybe up in quarter about of X.XXs. you for you're

one us be? remind those of Just may each the what impact cuts from

Daniel Weiss

here to those quarter the a loan or but the high quarter. if pay that could Federal Loan I deposit growth our we we with that's and the Danny, so deposits as mean that I would in tell margin experienced quarter reported for we Home the alone, ability about capital spend third through, in the third I can some take level, that borrowings fourth complicated as raised. That an a talking but calculation, $XXX just think that well million in here improvement X.XX% at Yes, would hour that. above I you just say alone down we provides I Bank the probably

And that in today primary for the down try we would be so boil guidance really probably margin driver the that things quarter. fourth if to

Daniel Tamayo

switching to side. And over credit then maybe the

and a guys perspective, strong not So increase stage been classified, my charge-off good a have a And guys, for too criticized it's were numbers in. where of good little but coming you from at above number. net a very or bit much. an NPLs quarters really, of of the look in been But well early maybe you couple forecasts down forecasts kind

Just couple over if visibility-wise you're term, near produce perspective, curious, the to I quarters? from a last what see we able credit look guess, to relatively similar on what you've of things the

Jeffrey Jackson

Yes, sure. I'll take that one.

great it that getting somewhere we've range in still think where between seeing them. But a to we once like credit quality. range others, expect in seeing I out I but one-off second quarter, would of the seem third somewhere over we're here that the and be to any be been resolved. not those X of issues have there. there, really We, again, we're quarter,

we forward. foresee So where good any and at the I don't we're really dramatic changes with going feel about credit quality

Daniel Tamayo

the And the topic on the classified then criticized maybe of just on increase side.

color that's on driving type Just of those if comprised of you have loans any that? what are

Jeffrey Jackson

It's not of where CRE. Yes. migrate broad over several will of and I a like the pinpoint. industries some I'd those good and really different we're feel swath And said, C&I, different There's quarters. really one next about at, we area think I

right to I pinpoint forward. but So the there's really I it could say one in move feel area to confident very not driving that, will continue it's direction that going

Operator

The next question Gunther comes Stephens. from with Russell

Russell Elliott Gunther

commentary, Dan, -- follow there. like the margin color I appreciate the would I I'd like on you up to provided.

fourth to the NIM. as maturities positive quarter catalyst the a You in XX the FHLB the mentioned of benefit

core So layer then that us margin how year. that we next acquisition, to you'd of shake help with in as to step pro kind NIM expect year. And we start as to could the early out up you forma expect the where you'd

Daniel Weiss

Yes.

I'll So your to think of the kind here, a bit funding dive here deeper margin little we question try Russell. about sources. into If for

expense Home Federal at and Loan X-month X.X% weighted interest move are next reprice. continue month, to provide million rate we'll forward. will a we of average about advances. benefit we Bank the have $XXX as That to in over These about So borrowings our that

and kind Fed reprices market plus and December XX% quarter a second a which into suite rate, cut that, as broker quarter then on of can down. rate, the accounts of first November about for in $X.X also the be have on private other the top and X XXXX. And or on billion X/X And here full side, will rate you have rate we've $XXX know, as cash continuing in kind basis less, that's the in is so of reprices think see to rate a repricing moment, quarter. asset And any X, well $X.X of portfolio X.X% down XX mature mature the I point Of look we points in That XX billion variable then X.X%. that's you million would book They're side also our actually of XX of here future funding at by and/or if that catalyst X immediately then coming is CD that we as deposits average anticipating variable they'll big have about XX% product another CDs, of more the a on or money tiered in indexed points, immediately reactive favorable reprice as every less. said, of is commercial of be a fixed. currently interest-bearing months very and down of off months about indexed basically or we also client kind $XXX billion reprice of $XXX about kind million XX% We -- kind cuts. about insured repriced X or that another we'll $X.X do got Slide funds And 'XX, then a and deposits. of in there, in basis handle. And is million weighted we're the and of end that basis as will loan each XXXX

that fixed the XX would next coming billion if frame. rate half million year be fixed mature the every And be then And up would rate, would reprices to year to book. months about XX% at What that in years, in that adjust X.X%. would upward. early then which time adjustable the XX XX the least XX and of kind months, million, matures in commercial the at about $X.X that the of months here roughly first $XXX we kind think in $XXX So repricing -- really of -- of kind is about be roughly that's per the next

that reprice So would will also upward.

mind securities So, X% the today, right saw growth in just the continuing off If we're and coming cash X.X%. in that's those yields X.X% and it coming quarter we securities X%, those cash back to from loan coming kind into are around keep X.X%, under third at we're we're with here you at flows of and new on reinvest to in flows,

in So CDs to I have of -- a But there. We quarter in if there. we're NIM we're slide estimate. X.XX% There being can to picking speaking, of That looking XXX then deck got on X.XX% we're we we've pretty a kind might you'd in bps kind in stands. also deeper moving with the do see in to beginning And similar up maturing XXX points last benefit we fourth quoted kind in Premier the will quarter increase do And lot generally good talked we modeling would quarter. And parts there fourth the quarter third first would that so you, more tell range. We -- still basis kind that -- cuts from basis would if head margin X.XX%. to say more XXXX. then into by we be that, of quarter down of XXX XXXX. thinking I that's X we feel as yield point momentum of margin as few layer anticipate deal, positive from be we that be the what quarter the if of be more cuts, peak, about in X today to would right anticipate time, even a XX of course, second sizable some the number top we still would there of benefit

Russell Elliott Gunther

that question. branch a just I us Very comprehensive. of just from consolidation, to of then for you a And deal, Dan, be in piece is line? all appreciate give it. million a the good could what WesBanco? my last $X switching if spoken bottom core reinvestment? gears to savings do And realized sense you any for as The rate layering growth franchise is for of Or to that, prior of in think kind the terms should expense of drop the

Daniel Weiss

talked I just quarter. on marketing And that quite that wouldn't had tell of quarter as our because And versus you increase higher offsetting and quarter. Also, not to kind a deductibles. any speaking, versus we'll reinvesting, kind the though, about $X tell be tell you, expense that as should first, the the would a or in say increases marketing third full just and point, expenses less or from much be million, in is the sellers we that their you their very here it's run I quarter, I we on merit some to I generally are predict. we fourth of procedures said a and bottom think Yes. our million through would have can occur quarter that, so would of third different healthcare in burned employees of quarter's X/X $X in at prepared tell things of having the that hourly that, more we're what that -- high So well, campaign that I But employees, into third difference you in the medical experienced drop about is it, fourth for quarter. The be quarter worth then I the you, of about anticipating would right? as we're of call cost bit typically, couple a line. in third in always additional forward, on my prepared increases rate expense pretty we which I remarks quarter, would If but is kind things would from for what commentary, difficult company. merit one I wages, kind reported big our tell would healthcare merit August, expect thing we expense rate a fourth have run be

to overall but heavier. and third puts bit think some So I a maybe close quarter, pretty little takes,

Operator

Catherine from The comes KBW. with next question Mealor

Catherine Mealor

Just little a in bit. was bounce And that past the on should expect kind I question. down small we $X was that What million few level But income a of there? driver noticed back other seen fees, we've to that the to quarters?

Daniel Weiss

this the driver was income, noninterest million in $X.X fees. of million a On a third really quarter adjustment to positive compared swap valuation negative was Yes. in The 'XX. the $X.X quarter

what's again, So that really pure just rates in swing swaps probably, is quarter. even you're That's those kind year-over-year driving interest again quarter-over the to that's fourth indication an But other expect quarter, if -- that valuation. in looking for what's booked. here matter, anything it. We necessarily don't -- or not causing is that linked that's of that of to movement back-to-back were than relative where occur

Catherine Mealor

had that together others. lumped and You

close back the the just X.XX% -- accretable second forma at with yield? that kind the To you mentioned, is X.XX% wanted So where margin, a then go sense. confirm NIM pro kind of Premier, that to goes including And were ahead. to makes that, margin thinking to that of you that

Daniel Weiss

No, -- to X.XX% I'm I quoted not X.XX%. I don't believe

Catherine Mealor

I'm I'm X.XX%, X.XX% sorry, sorry -- I misspoke. to

Daniel Weiss

what the Yes. Yes. I'm sorry, question? correct. Yes. was

Catherine Mealor

to That you pointing margin X.XX% what X.XX%, you exactly -- X.XX% with that you X.XX% forma to pro The mentioned. are was -- that comment? can

Daniel Weiss

Yes.

million kind deck based that what second what that of of details based margin that. I second was the if playing what talk in kind presented was quarter, that's don't so loan driving the a the accretion that's -- with one $XX loan into about primarily of that's what things that's projections, accretion -- of modeled. upsized the slide and on recall laid of we quarter per the So about lot year accretion we being out did we and guidance. deal. know -- on of kind And that's kind modeled we're our of obviously, the we how that from That

Catherine Mealor

Okay. Got it.

past fair close a just taking about I'm now And and conceptually just and -- kind the it then close. we forma we're I as of you think but your of pro margin about sheet. is as that balance as we the So -- kind then know XQ is think at

a gave, of which core the few we're you to add that So all we X.XX%. around quarters, given next and takes puts in the if you kind see of sense, bps makes few and X.XX% expansion Premier

makes from can And still move is there there And balance expansion we settle Or is the then with kind until on the things do case the half back past of if sheet? there so for you kind stable you for as some a that, that in? get rates of a that while rate sense. it cuts of still year, you're

Daniel Weiss

Yes, that's for I this tough that's -- I would to say answer out. mean,

of the of opportunity the there take under legal say, We the we But I'd though, we we'll their to I say speaking that So speaking, we you to March. gave may one did $XXX the anything a restructure as on rate merge, things And in like that be securities. of shareholder that. scenarios talk are could generally books million the would lot this incorrect beyond at point of sell kind a the certainly giving if and of do second long-term at couple CRE advantage of value is million we about out. really get quarter. hundred the maximize balance sheet, different environment play opportunity to answer, potentially time exploring I about on depending of would have an you -- probably as loans I take talked last quarter. And

Catherine Mealor

That's fair. number. wasn't down to a you get And I to trying

lessen asset sensitivity. deal of kind the think because does directionally, trying to Just your

you you a I in see conceptually, expansion. some should margin still where And position be think would so could

was just plain in in of was the I curious seeing So half if sight there of was were you kind back next year. anything that

Daniel Weiss

say, would mean we Premier forecast believe second we a us and in I benefit beyond forecast in for the which even consensus using speaking, was that basically back kind that generally environment, I down positioned XXXX. both No, of the Yes. a estimate to are were quarter, rate

couple So of overly it's some on some know, quarterly begins basis down I is component, to you points. offsetting think that accretion there yes. And that not a significant, a upside run basis, though, the there, as

Catherine Mealor

just Got just Okay. then deal. one on Perfect. And more maybe it. the

between cuts close. big with do big and more that in expect you and change now Just initial take? there And give about rate dilution Is and our modeling book how you value a tangible accretion? picture with now that think

Daniel Weiss

great as Yes, And what last the question well, to to of a goes your kind of question. question was thinking. that's and I that's kind it back --

the XX value That accretion. modeled $XX In we had curve, fair in fair values terms forward was May based of when loans. we We rather deal and you on calculating will. if about priced the the to of deal kind million

think So are environment May, than there in down more if we a been was back rate has about frame. we what time it aggressive today, where know that June certainly we

would dilution so I TBV is as see anticipate, accretion a a less And to a little less positive little result. which and point, a to your

on income offset yields. the or on the -- through coming With the actual on balance the statement higher

Operator

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

Manuel Navas

You that thinking in issue rate Can with just growth. the and were that about to an how trajectory loan kind mark. CRE -- of of through you kind back loan just considering under mind? CRE a growth since XXX% about thinking level this Is in with May context and and of concentration of concentration you're your of the less ratio managing half the potentially that year, talk

Daniel Weiss

to on XXX% ratio being environment Yes. relieve sure. I -- some pressure certainly, for rate that We with it, that you're concentration tell from you, that would Manuel. puts the lower,

Jeffrey Jackson

XXX% the the And question as of time. provide We but land, dilution talk that is down, obviously rates for accretion previous I a the with it relief right, well, Yes. about does ratio. where coming driver it No, the does would the all agree.

it up, does yes. So yes, to it sum make easier, it --

Manuel Navas

of just about what regions what strong in but regions Okay. account talk can of lenders? -- and coming growth Is terms as X out were kind is helping, what's really of deposit the the you strong commercial the

Jeffrey Jackson

Yes. Sure.

these One checking One. loan one NIM grow the a incentives lot mean, from then new our we that nice putting of WesBanco the for -- commercial new our deposits. And we're change these we a with help, started really we've we seen for are growth, all kind seen So basically of the we've we're fruits about ago, Summer consumer but really Obviously, really account, entire of from And deposit is added and think shown. growth year it's deposit with been account. excited thing, really it's across which talk is The this tremendous I across nice me you've accounts say driving coming additional about I the the And really us, footprint. would benefiting heard that growth bankers that's this -- a type cultural footprint. it. really programs, along to about -- of we've but I tremendous the It's it's commercial

Manuel Navas

commentary additional kind Or you touch on more Can on talent PSC pipeline? any the are focus talent Is going across the just is where footprint? the of there on forward? you on

Jeffrey Jackson

Yes. Yes.

really and talent of Premier the and bank, So a we that. to very recruiting. amount working really, got still that attention at going big that's we of were that, great acquisition, obviously, and through a They've well. are But pleased outside

But Knoxville those our I've other Nashville. We're and mentioned I still potential add looking looking the definitely LPOs. areas looking X for As say before, along talent would be we're would additional markets. existing also talent, with we're at in to

a couple and market retired have as who of looking at replacing presidents well. We through working are that

seen tremendous company. trying growth we're why that's the And a So this lot our the there best talent. and out of for have have such and turned on growth that retain is deposit really retooled teams things we always loan we've changed and to recruit

Operator

next Markets. The Karl with RBC comes Capital question from Shepard

Karl Shepard

and industry. to Just And hires not and into guys bit you environment good a keep just and but light next Can touch loan year? do continuing expand to obviously offices. answer new outpacing story the comments little on that is the production bit, some growth on optimism you your the maybe a a little for on you

Jeffrey Jackson

in management I we're opportunities. down, potentially is people I off mean, holding coming pretty double loan people has loan think slowing and on you've same loans down. X I do of Sure. the our that No, they've that we growth strong amount the refinance maybe opportunities with things me very Once continuing to there optimistic we've a Sure. to ago, been recruitment on doing rates continuing that the growth. think think about of say been production the production. I XX% loan gives I see it the doing about environment see again, for provides this, or had with but had of we're more our don't talent and loan offices, years lot expansion of about that be I heard amount it us. also

And and for loan out the way our very put company so and a there with in local that market I we combine still and great our when products foresee the to and then strong go our us you future. decision-making culture, people continued recruitment of we growth the talented

and addition our into Premier the our in pulling I it's and models, just think sales going culture even to I more. that accelerate think with company of

Karl Shepard

balance seems And rates or are? those do is any a about But sensitive helpful. the pretty really for It lot we your I'm well That's Dan, of you XX sheet basis Okay. how curious, talked just some series just point a of assumptions like cuts. where positioned preference go have margins.

Daniel Weiss

tell would I you no. that speaking, generally

it are neutral much liability asset and repricing. We short-term to as very relates

the XX we that's to not whether impact. see and -- more be that a in So that's think going -- have we much one than XX would XX don't would that would be our or have of to a; helpful that going I on meetings, -- not forecast these but be be just cherry top. quite an frankly, slightly, not over of XX

Karl Shepard

in. I'll then more maybe And Okay. slip one

and this to closing? on actions equity down rates Premier guys But anything between then the few offering at know do quarter. to sheet. borrowing tinker there's of to want you you the now common ahead depending time. do I a You at balance that repay Anything the want did what are

Daniel Weiss

mean for to mind. -- rate we environment this We've going in could this, have variable at the that we basically CRE of -- about nothing loss planned and that point. We area There's particularly, that we're if a strongly explore nothing said, I do that down not on have basis, securities really talked certainly some in be of felt locking we could combined but longer about we a some could XX% portfolio or have our we specifically one no deeply but there selling for of be term, rate at in rate. fixed is specific gain talked in an securities, restructuring have like a I that's terms long-term loans.

Operator

last Bishop question Hovde. with from Dave Today's comes

David Bishop

or probably Jeff Dan, more to Dan.

You flood the gave us rates. some the some of good CDs expiration of anticipated borrowings or terms and weighted average color maturation the in of and

you market you think those what rates curious into currently? roll Just sort current of could do

Daniel Weiss

Is that CDs? on

David Bishop

the and curve. CDs FHLB

Daniel Weiss

Yes.

-- running about kind is XX and in got $XXX FHLB funds. the keep we're continuing to And advances. now, million above right we've So XX of Fed running to X-month that points that's basis

we we the future, projecting annualized deposit point, X-month from in sooner I XX.X% success pay one to substantially time right on Those tell XX then or ]. reinvestment generate the be would happy X% We would like the the certainly I be and additional At kind where as CD or for And there we would those today, X.XX%. the the near X.XX% expectation that to as quite the basis FHLB down you We're lowered necessarily plus came would would not basis In kind desirable. around the nor -- are rates certainly with month. quarter. repricing, XX special in points we're we estimate we the were. were be the can rate, are of So that on about say said, FHLB. extent funds fourth down very quarter every today, deposits book, yes, we're have high points projecting I third XX [ that any Fed of that that. But

David Bishop

obviously, is then there run of deposit fully rate? sort revamped accruals into bonus Great. baked be terms incentive any Will the side. And some Jeff, there sort really incentive -- driving on like okay. such. fourth of that the or catch-up mentioned, compensation X%, quarter in stellar you the growth of I assume

impacts quarter. Just how that curious compensation maybe this

Jeffrey Jackson

just wouldn't of impact the program any was commercial sort them. banker categories What we of it pay took No, for we and the did incentive quarterly. and some what we rechanged

deposits. you so may have we last heard me say added year, And

for, same, quarter, of are for And quarters. amount year. accrued so in But incentives us would and the the first the typically the future this paid change for. in it expenses obviously, out already accounted expense be any the It's wouldn't those

David Bishop

real I Okay. Great. question with -- dealing in like a of pretty commercial outsized been lot seems have final your And this it quarter. Jeff, guess, here. estate then especially peers, payoffs,

like got the in ] the quarter, sight sounds payoff able TDs here no you larger a Just [ think read you've lot to curious looming how you've been and sidestep of to correct? I if large it fourth

Jeffrey Jackson

we well. I our would say very customers Yes. work with

right. You're

payoffs. haven't We lot of seen a large

feel so slightly quarter, tab than said, to that more our customers I We all and do don't different few little the more, it. think major fourth I we quarter a very heavier quarter, far. a we little third than no, payoffs. good keep time. no, very talk payoffs like But about close be And might on a might fourth quarter. any But see large third see we looming a momentous coming

Operator

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

Jeffrey Jackson

you. Thank

we deposit strong loan past maintaining achieved and growth, capital quality. levels again strong the and quarter, During credit while

and well gains We efficiency events. achieve on us future of day. are focused positioned speaking today, for upcoming our joining investor near for the positive you organic you operating growth one Thank we Have to with forward to remain in look a and and future growth. Thank leverage you. at great

Operator

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

now disconnect You may lines. your

WesBanco (WSBC) 24 Oct 242024 Q3 Earnings call transcript