WSBC - Earnings call transcript Q4 2024

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Operator

Good afternoon, and welcome to the WesBanco Fourth 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. to Fourth welcome Conference XXXX and Call. afternoon, WesBanco Quarter Inc.'s Earnings Good today President and Jeff Officer; the are Leading call Jackson, Weiss, Executive Officer. and Senior and Vice Financial President Chief Dan Executive Chief

on afternoon call, included for year, this in materials website January information our archive on statements of reconciliations available Investor yesterday investor information. statements no materials. and as of them. These X which website, Relations WesBanco be our earnings-related update other filings our contains will are section Today's available as SEC an speak non-GAAP our and and materials Cautionary forward-looking well only about XX, undertakes of the wesbanco.com. All measures to as issued obligation of XXXX, are

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

Jeffrey Jackson

and good results year full review operations and for today's quarter call, initial update our On XXXX fourth strong afternoon. on we outlook our Thanks, will and and an provide John, XXXX.

call loan improve and through net to remain today is operating gains meaningfully interest to Key improved positive takeaways on organic expected focused are: leverage. margin, growth, achieve has from growth been XXXX. funded deposit strong efficiency the which through fully growth that We

remains on fully funded regulatory by transformative of Financial year $X which was pending delivered of billion, Premier Our XXXX strong Fed deposit and We acquisition FDIC was WesBanco. track Corp. approvals. for excellent an loan growth growth.

and national our continued We for earn with trustworthiness Financial to excellence. also announced and transformative Premier merger stability, recognition workplace

and higher borrowings in to and raised X% margin. balance the a strengthen We net successes past annual of down our X compound years, cost equity million common our have $XXX over key strategy sheet loan rate growth interest and of achieved paid

to relationships drive enhancing focus cost Additionally, client operating management treasury wealth our businesses we positive leverage. and to deepen while and control continue on

value strategies on our for sheet, With momentum and and well strength and delivering build to premier continue our and stakeholders. proven the financial merger positioned of the are our customers balance pending we

For available net income, XX% we XX, ending per million reported million reported of restructuring and similar year-over-year. expenses common income the diluted increased to per of $X.XX, and share earnings a earnings December year $X.XX. of On $XX.X net we quarter basis, which of diluted full XXXX, $XXX.X shareholders share excluding merger and

Furthermore, common a common in provide of during the equity financial fourth strength of performance financial of equity past assets X.X%. ratio the by assets capital flexibility was our demonstrated continues Nonperforming that to XX%. on position return tangible to as X.XX% year and our total and tangible of just reflected quarter our operational

the and customers numerous milestones excellence of and our Throughout that employees. past accolades hard a continue receive employees. which focus the and sustainability on accolades, work and These our strong year, resulted operational recognize to we our several from also testament performance, commitment accomplished our to to and are strengths national communities, dedication

So a heartfelt them. extend I to thank you

experiences, aspirations, got to our vision soundness few that which Just and customer respect, include pledge, mission, renewed launched our a the communities. which we accountability a values of business, accomplishments, purpose, defines our our highlight stewards exceptional stability, and of and and

Our sustained success. MVP guides [indiscernible] a purpose of shared us and our strategy in sense towards

common total of retooled component the successfully acquisition services banking a us Financial a our new million our make of the to $XXX for our levels raised further treasury pending positioned of with conjunction future income Premier and our drive key of strengthened of We percentage In and announcement philosophy our it we that capital equity and management larger fee products and function revenue. developed to relationship helped growth.

growth of of $X.X and investment broker-dealer billion market levels management account services, realized through of security wealth record our services and of assets teams Through $X organic our management we the appreciation. values and under trust and billion, strength all

and we to day to top excellence. of efforts our past our and our customers and year, reflecting with continue serve employees stability every rankings Lastly, communities receive the strength

trust. We impacting X were investor Forbes' based safety of both fourth year-over-year communities. both recognized basis. for remained we and The loan soundness, positively quarter our year growth growth strong and and Great and employee companies sequential named of were recently, full most key And deposit trusted a growth profitability. on for Choice story quarter Employer on and loan customer Workplace, funded deposit as a the fully and

commercial just loan again of data all significantly strategies to and the Further, and success continued our our quarter-over-quarter a growth domestically and year-over-year outperform for monthly deposit on demonstrating commercial both growth the HA total chartered basis and banks teams.

$X Our to and million total than year-over-year billion billion. $XXX more quarter-over-quarter increased deposits $XX

other was total focus on growth deepening deposit categories as And component of continue this total of with XX%. demand than the team's to reflecting mainly driven and represent noninterest-bearing deposits by deposits certificate customer our representing relationships. XX% new deposits Importantly, existing

of with of a growth a think as success of has banks go-to-market with achieving and company the of and year-end loan strong we have but the we bank, achieved are customer recruitment our strong Since rate focus compound Our community bank. support that are the sacrificing all combined to by large which are products metrics of strategies, of services annual same underwriting legacy XXX-year growth assets been average XXXX, billion between credit to of achieved $XX billion. a without loan standards and roughly $XX number our our key credit and with favorable and with quality confirmed bankers a the and X%, the

of by a total quarter-over-quarter XX% year-over-year our loans markets. increased Fourth commercial an annualized annualized, Further, basis, growth by strong and sequentially and across on almost X% nearly quarter driven commercial estate. was X% teams X% performance our banking real year-over-year driven

accounted of led by Our X Indianapolis for offices our commercial offices. loan newest production growth loan year-to-date, Chattanooga the XX% and nearly

as commercial our from solid another XX, approximately growth. September teams million, $XXX a December into was year of roughly loan X% the as pipeline of down but pipeline converted loan Our from up ago XX quarter XX%

year-end, we growth loan million. X approximately strength $XX during pipeline teams the and XXXX. grown has since on mid-single-digit However, in weeks current expect the Based and pipeline of our the markets,

Indiana celebrated successfully income. Southern in million fee credit $XX with a Our a a winning commercial Louisville construction industry, $XXX,XXX unique opportunity and loan a in banker team relationship-based specialized customer and over recently

many While team the long-term and bank's in opportunity secure and of team values complex day-to-day of possible challenges persevered and our by understanding support accountability, the deep living through which presented soundness made stability of the performance. the win, our was negotiations resounding clients' and needs to our this

Turning to our Financial. Premier acquisition pending of

filed Virginia. of pending track as and well approval necessary received FDIC shareholders companies the We as regulatory applications on all a bank first and Fed from previously both quarter have the for remain We of state West approvals. closing,

on services momentum, benefit positive support. our Through we expect communities. this stronger organization engagement And transformative all the resources bring and and Premier's accelerate community of to to larger legacy acquisition, financial of together, our build a

would I results like to outlook to a for call on XXXX. Dan? Dan current for now fourth CFO, over quarter turn Weiss, financial our update and the our an

Daniel Weiss

Thanks, good Jeff, afternoon. and

XX% period. $X.XX restructuring common quarter million XX, or net or per $XX.X share. in the per GAAP income of was $X.XX million an For or per the of excluding to ending $XX.X when net December And $X.XX share XXXX, merger-related from share, representing shareholders expenses, increase and after-tax reported prior income year million $XX.X we available

$XXX.X excluding third to during restructuring after-tax XXXX per or year full share quarter and income of basis, the the of was $X.XX shareholders, to as the million common or XXXX. share available common a million stock expenses, $X.XX net reflecting $XXX.X merger-related On per compared impact raise

built of fourth the accomplishments. continued over of of with that quarter's interest the period. growth fourth quarter was expenses year-over-year few increasing and net a fully growth just $X year as as by highlight that earnings was operating improving To linked of the XX% generated strong expenses We income loan margin, fee billion X% pretax funded upon growth pre-provision of XX% quarter third prior management well deposit strong and growth

positives, share $X.XX with pension despite swaps recur in not slight third to credit These positive a benefit the a fair raise. increase quarter's share resulted provision expected a count in a adjustment from capital increase negative value in and the and that's the on earnings per combined for losses,

assets unfunded securities and strategies across the robust billion land the Jeff total commitments and payoffs. teams XX markets, $XX.X construction remained markets. fund XX, over has of our billion by about in low development our loan roughly teams our $XX.X over of total total banking growth relatively loans and growth with banking December We been next $X.X future strong loan pipelines, years and mentioned, X remain expected strong as portfolio XX our of billion the $X to months CRE combined to are that with optimistic and of last billion. and of success As driven performance included the by loan

$XXX Commercial are level sold, $XXX anticipate a the payoffs year CRE over pace real into an time compared that to estate may we payoffs of totaled for and million range permanent if financing the million more decline. market normal or move the secondary increase more approximately annual particularly the in for as projects rates as operating environment in

deposits billion were The gathering of versus mix our and efforts have continue deposit X.X% the Deposits annualized retention. on year total X.X% and up of $XX.X composition linked shift. reflecting prior quarter, to some

as deposits total the percentage to the as with a remained as noninterest-bearing demand range prior total well However, deposits consistent deposits of pandemic.

during XXXX. environment, rate during in As we've is growth a higher typical strong CDs experienced

and we X.X% XX% excluding X reprice annualized. when over realized March However, growth next quarter-over-quarter the CD Furthermore, of mainly year-over-year lower we to May in of the our to roughly X.X% timeframe. book them, mature or anticipate deposit months,

decreased metrics loans offsetting allowance quality. lower over a total more portfolio X-plus reserves. improvements portfolio the and growth slightly credit normalized of yield years. portfolio assumptions X.XX% Credit Turning last from credit to the have loan losses related macroeconomic for unemployment due of consistent a curve, to at continues low to to forecast perspective in office key to The stable. remain and total quarter end the remained Its quality historical the and range to loans within a

through as total the to loan of our and strategies quarter-over-quarter and The margin upon margin X.XX% a higher benefiting we borrowings Also to costs continue fourth was lower year-over-year $XXX Federal strengthen pay security million. XX growth yields improved execute quarter combination sheet. Home both June our bringing $XXX Loan to growth, Bank of of the since and funding paydowns million down deposit exceeded which loan balance from

reminder, from a as the XXXX mature of fund first reprice rate Bank lower are of during short-term XX% approximately borrowings such Loan borrowings to should Home Federal and Fed that continue quarter our additional will the And majority cuts.

Our basis was recent higher the reflecting beta basis mix the XX%, deposit costs of points and points and the November declined September points noninterest-bearing third of XXX of rate on our quarter, cuts. funding X deposit basis total the XX cuts interest-bearing from rate deposits

a The fees. million, last and $X.X swap period million were gross fee of XX% quarter $XX.X For trust of fair increase deposits increase due totaled higher charges million. loss a reflected quarter, to linked the and income, period adjustments fees fourth the income service over valuation increase valuation value a and and year and in prior $X.X fees in noninterest income million XX% swap $X.X on swap the which year income

Service to treasury spending and products charges is transfer line income on note increased fee million a gain repeat. also from increased company, to deposits from included and third-party the certain income new business late consumer insurance from which It's XXXX. repositioning of liabilities important expected to continuing pension to for management, future a payments our services this strategic which traction gain due in general other that is to $X.X not of

company-wide expenses. just year the impact mortgage prior models somewhat increase the branch excluding of and primarily this upgrades. was also increase efficiency months expense, The and the wages by year. merger-related ATM increased as ended prior the the X% were Salaries staffing positive year-over-year, XX, reflect in efforts primary lower expenses, costs midyear for increases, due levels to of in we've merit associated improvements restructuring the software equipment driver in which standard operating from increase remained million, of with million offset and efficiency $XXX.X X our which and staffing Noninterest focused XXXX, the achieving on Turning $X benefited an to December leverage.

net Our fourth the $X.XX above income, of and regulatory Directors $X.XX approved position quarter. capital a applicable during ratios strong have increasing standards our to and well-capitalized dividend reflecting Board remained the our capital

outlook which current XXXX, any Premier does from our is WesBanco of and include not our Financial. to benefit acquisition potential stand-alone for Turning for

rate interest expect our fund our net cuts are And We and currently rate March relatively X Fed or additional September. neutral modeling sensitive margin. cuts a difference we position, on between do in significant X given X not

continued margin of December in the expect more the We fourth month basis X we spot was X.XX%, interest margin the improvement approximately for X first to points anticipate the then and mature of May as margin during more more net meaningful during reprice from through quarter quarter's $X than and we that improvement as CDs period of second modest anticipate half the March second billion in during quarter improvement XXXX. lower. And our

brokerage Securities slightly anticipated markets. the be fees to growth quarter will fees. due equity over Trust higher to last but upon the trust growth be should seasonally first revenue range is modestly impacted organic fixed benefit grow economy And the and dependent equity quarters due income tax the and to income will from market and organic fixed from reminder, but modest as are also preparation a trends. fees few by

XXXX. expected in to they on general in could Service half dependent the growth but to Electronic consistent remain of banking treasury which the same earned slightly expected amounts are are range in that overall with we've second fees, charges spending are on to spending in consumer management. benefit deposits XXXX as behaviors quarterly the be subject continued from are consumer

should million continue housing to the interest overall trends impacted commercial to will banking rates. in be of then $X the remain million. income, market fee of XXXX, market gross of $X the the And and excluding in range should swap second but range Mortgage adjustments, be half residential by

new XXXX management we and And anticipate then payables modest to card from continue treasury benefit integrated some during our products. receivables, purchasing

Turning expenses. to

on will past, our positive to As efforts we XXXX. we stated continue management drive throughout and focused expense leverage the operating remain in disciplined

fourth approximately we at improve quarter inflationary experience expenses to general products, As to than we and offset first as the of to invest in faster services continue help XX we and locations successfully annual revenue technology begin pace branches software the pressures. savings previously expected of Equipment will into to during is disclosed, quarter continue a be to and to million drive and consolidated anticipate XXXX during nearby increase $X the growth. customer overall realized

the and half Marketing in based expense loan deposit to quarter's $XXX million higher with due costs midyear know growth expenses to then slightly run the rate increase year. be the increases reported the and will during of of roughly consistent FDIC our and we fourth of and half healthcare and grow XXXX believe and what we our support annual software the merit today, during on modestly first back

depend as will criticized qualitative changes losses well macroeconomic future in quality metrics, credit potential changes credit loan and prepayment as delinquencies, to for provision the The and factors, including upon speeds forecast growth. charge-offs, classified loan balances,

full And anticipate income changes lastly, tax effective to tax and in XX.X%, XX.X% and rate currently subject between levels. taxable we our year to regulations be

questions. now ready we're please the take you to instructions. Would Operator, review

Operator

question from first comes The Russell Instructions] with Gunther [Operator Stephens.

Russell Elliott Gunther

the of on sides color margin to balance all NIM. I the Dan, like legacy a sheet Jeff, both to wanted of on to bunch and the WesBanco, start it with sounds the appreciate regard tailwinds,

quarter them the would second share you offerings repricing are just to off of then you into? duration moving where those the So of what the expect CD with into the Dan, as what are. reprice about could think And we benefit,

Daniel Weiss

Yes. Sure, Russell.

CDs. And rate billion basis and XX about so first, anticipate those it's -- $X.X we weighted And those is about average second XXX quarter, X.XX%, repricing are points. downward to by in

more bit second a So going of that's we're see where we quarter particularly outsized little think we to margin. in the have kind where lift

right CD in -- special. that slated those kind now, remain And have X-month we to of

kind So of that's your duration.

Russell Elliott Gunther

it. appreciate I

Okay. given also think of, in put sit rate And margin sort the does your with gears, a forma expectations backdrop, we cut you Premier, to legacy of the margin X X.XX% improvement or margin given and in the that switching forma with close? X.XX% of there call we it, pro in I thinking don't us range today, as that should pro Premier, your then Fed is about we as upon be outlook layer how kind deal any WesBanco to about know, change

Daniel Weiss

modeling right close pretty what to I'd I think say. you're Russell, we're Yes. now,

it's one a pro when recall in off say, And would of a X.XX%. if the you July, been like rate time first to then, since the on back kind foundation. had if a first margin we would and we announced it deal think was the -- environment, consensus stand-alone of consensus XXXX analyst what I I that has that of have based certainly, changed WesBanco would I of about the forma the at quarter -- think for analyst that basis been forecast X.XX% we were things quarter for have

And XXXX, the since better today. range. of XX we've X.XX% estimate, points XX to X.XX% than the some feels discussed, pretty good given could that tailwinds quarter basis to I we consensus first that be that that think of

Operator

from comes with Shepard question Karl Markets. RBC Next Capital

Karl Shepard

pick opportunity of the just whole rate wanted appropriate year A deposits on up quarter in sketch little of bit and this can bit you stabilization some XQ. I is? a and the an continue. more. we to you mix lot a what saw growth could is And out But little think deposit

Daniel Weiss

Yes.

one of And that So for by the quarter-to-quarter. be lumpy year, a But what is funded expect say to little loan I fully deposits that deposit generally deposit modeling the is fully would that bigger assumptions today would we're fund growth loans. could growth. speaking, growth we the be

I clear targeting pretty loan for are about upper growth growth. that expectations mid- we've And to been basis, think what our on loan working kind so an backwards single-digit of annual

so, So growth. million that's about in or million $XXX loan $XXX

growth. so expectations on what of inform can deposit are our kind for you And that help to

Karl Shepard

of just at less CD similar Okay. is are of composition? see Or growth? it, we'll the little piece that a still kind on And mix think then do you

Daniel Weiss

than like growth this CD think XXXX. I we less year we a -- in little probably XXXX what see concentration in could saw

bit it mixed. evenly think more little I be could a

Operator

comes Bishop question with Hovde from Dave next Group. The

David Bishop

question. quick a Jeff,

the treasury on in side products some of success of revamping the your sort You noted management house. commercial of the

Just Are commercial added don't can maybe you percentage commercial provide year? there deposit seeing if curious, are a the of but accounts accounts just increase you you know curious -- maybe win color disclosed growth. commercial like any on you I this, bigger to give this advertised new -- able

Jeffrey Jackson

Yes, sure.

We are seeing some account larger wins.

continuing I year. implemented And the of pretty I around treasury were that last tell we XX we management once up I new ramped grew think we're again, will fees you nicely. up. believe of we're middle to cards -- the ramp it multi toward year-over-year end that

this or this So obviously, through for that year. at more then many year. are would least flow targeting that spend we And

really but the teams are C&I teams, are saw started, us the is repertoire, $XX getting adding there. bank it's to seeing So to the lift the million. fourth quarter, you we C&I in I business. allowing commercial the grow revenue it And which really believe us additional about

And for positive loan so well perspective. a from a big was that as us

then deposits as And a growth tremendous in had well. we've

yes, being and just a So would really it's big to it's impact loan as as able ramping I made balance. but grow far up, say, deposit commercial

David Bishop

you're close acquisition. I follow-up the in of then And Premier to Great. a a confident it think, first preamble, the question, still quarter sounds like

is this. curious, the in Just D.C. reviewing

get that on curious Just the approval. final regulatory to

Jeffrey Jackson

Yes.

first that the very close and it and are confident we D.C. the both quarter, D.C. we'll in So Fed in is The are FDIC in

about. correspondence on items had and questions and have We that answering a few with going back they've minor some asked both forth

and this At very have I arisen, no we comfortable about that closing still quarter. in feel first the point, see issues

Operator

with The James. from Raymond next Daniel Tamayo comes question

Daniel Tamayo

payoffs XXXX. gave about, in of in that loan loan growth you that Maybe guidance know -- terms increase an growth? you're the a Does mid-single-digit in an what I in The on you increase in what assume XXXX clarification. us mentioned you first, talked expecting just payoffs

Daniel Weiss

net That a that's net -- a will be number.

in to still digits. mid- single payoffs with So that upper

Daniel Tamayo

percent. to Mid-

you're loan -- payoffs includes about. net talking number That's assuming it increase what saying? within you're you're growth that So that

Jeffrey Jackson

that's Yes, right.

Daniel Tamayo

deposit to were again? scenario Okay. situation would similar growth it yes, to lighter would growth pay expectations there if to down play you loan exceed in come I'm were had FHLB and you to occur. were in were exceeded where borrowings that the curious and bit quarter If be payoffs a inclined out little loan how a just that fourth growth

Jeffrey Jackson

we would. Yes,

we're FHLB. is growth than all that less paying at our deposit what in bringing So we're

I would we FHLB we at interest borrowings positive pay on loans a -- grow our believe, able the weren't to deposits, net if So have rate of impact, we down the would which same margin. would

Daniel Weiss

few And quarter. a earlier really picked as Yes. down and saw loan home of those we in in able came basis and in saw we in fourth margin The quarter, that total the deposit here kind borrowings were bank result. actually pay we we the the to points a -- early quarter, growth fourth up

Jeffrey Jackson

We Yes. XXX. at December finished

Daniel Tamayo

here guys, an been And but Okay. maybe you for been credit. in it's gears Terrific. there classified. Certainly, criticized then uptick switching to just NPLs was and strong and a

have in kind you any if the uptick driving what of curious on is more categories? color Just those

Jeffrey Jackson

of it believe a I up quarterly ebbs bit. Kind normal little raised credit and flows. X slightly

historical getting think times if most resolved by still well groups quarter. I our this end categories, at look least trends. we the average or in on early of we're historical all the peer quarter, of you better. plan next And trends, our still that our probably And at within of

So read into I those anything numbers. wouldn't

And As quarter-over-quarter. all. that there's point, fluctuate you trends we're this at know, seeing no at

David Bishop

Okay.

be So is . we forward comfortable net charge-offs saying. what should have kind what historically with looking you're like been where sounds of still

Jeffrey Jackson

Yes.

Operator

KBW. from The Catherine comes Mealor next question with

Catherine Mealor

on margin. rates moving like and good circle also margin stand-alone rates move kind here just Premier of the WesBanco want on for the a looked in back it It And this a quarter. then your comment I have higher to basis? to been like feels had

trajectory like kind margin the far. better is feels So so net just of it

what's On of about the and is think best guess ratios, X to close, follow. at rate I we as capital the flip of that, forma kind question pro

we since you If the the at the it a moved like little look up XX-year, announced deal. years XX bit looks

think but capital. of also for yield, that good high to would it's impact And negative the a we I margin, because do kind imagine, so how about credible

need in estate, push pro And you be you're to the so something that move solving is get commercial that about ratios ratios forma just as does should the in about more kind you real rates think to we near Or capital to ratios close kind you capital we sell of close, as at where date. there think of to close want at for loans?

Daniel Weiss

Yes.

the hit of think tell the our -- there. loan I things you things and as that original or questions I great was of mark a the XX, one on actually lot What of what and revalued it you the and -- that a of commercial did from number entire had came thought would we interest we slightly. December to XXXX, assumption compare is do down to perspective,

-- things. So but I would tell you of a couple

would I But we're valued year, I was the X-year than X-year time from And so the range, of at use would the more million, in we at would the million. to the end still a back down $XXX right today rough probably kind the came XX-year. million interest kind mark or X.X% went that $XXX -- it of stand-alone on have of about around so basis say. down actually $XX the that well,

at end mark interest kind of X% X% deal announcement about were the were kind there. based on in rates we actually of so year, the think, that's of what a to moves of the just we discussing were direction opposite mark I of, of at where kind That's -- kind and

see little less interest a value in mark tangible fact, little that book In dilution, less scenario, we a accretion.

to that you very mindful to our -- say we and kind want we want we're of deal lower the CRE dilutive, our XX% to kind view ratio very ratios or focused something to math takes keep that the to actually overall that down there, that. alluded -- TBB under we're and to is I of portfolio very with under And of maintain on, just from would dilutive XXX% which positively. guideline, about it want -- dilution, we we as

based pro December this with ratios would that experienced rates the well. And capital interest fourth mark kind combined ratio quarter, numbers Premier's the are points, assuming of forma the about I tell updated all were analysis improved across well XXXX. for bode with kind that XX is we lower of here, our they capital very in I well by what will the board of as you, growth as on reported they that the kind that at capital about XX, But X.X%. say nice better basis

Catherine Mealor

It's really interesting. It's so helpful.

it announcement, margins our then yield, like So coming since just and higher. are getting looks we're book core dilution accretable less less deal but in

of So way maybe to actually it? little margin, think in. net probably that the bit a all neutral, about a fair Is to kind better

Jeffrey Jackson

exactly Yes, that's Yes. right.

Catherine Mealor

great. That's

on the then expenses, timing just a might upside now cost the remind those to few savings of that us can kind any kind deal. in and savings And months you Okay. you're just of there's announcing from cost you see of if that

Daniel Weiss

Yes.

begin would anticipate conversion cost conversion. So savings, month core typically, we that's to after or core and typically, after X good a

where -- the still to of so kind when that was now, feel feel right after very really And of so on we to nice for announcement assumption still to we've that good conversion of begin period core and kind X about that's occur. running May do date certainly time, for And that conservative realize to still then that. cost got a thereafter, of track tentative we're parallel middle that there's that a We cleanup we a and or expect saves. a well XX% feel obviously evaluating, . We're full we're but assumption. meet would of month that that,

David Bishop

The next Manuel with DA question Davidson. Navis comes from

Manuel Navas

to on just that. up follow So

rates of stronger Is actually takeaway. on is movement prospects. kind growth a capital even to Just capital likely CRE question. no close part that The at improve your all on of and a the a that at headwind legacy longer that follow-up concentration

Daniel Weiss

does CRE is. any improve -- ratio is. And sure. if the It it I concentration really certainly growth, does on kind imply say remove I you're but day ceiling it Absolutely. Well, it that right. didn't And does of help it that, there. some were for of X meant on there to

Manuel Navas

accretion of kind Premier -- most covered to transaction? me anything any any -- Just but updates things, guess noteworthy we've targets remind on pending updates or are other the I the there about other

Jeffrey Jackson

the -- at of adjust continue that I CRE to would the There's the recently where and Catherine in a are securities mean, of reinvest, of accordingly what duration want maybe with only we we that and $XXX have I roughly we'll potentially more depending to they the that and I -- been see take sale sure touched want sell on closes an that we has might coming think add, impact maybe more are have on But on how of portfolio, evaluate to of rates million we more a other duration we restructure and we opportunity I it. are. here basically that. advantage the on concentrations thing make to some opportunities portfolio, little the the and say deal more what -- longer-term take kind we the securities CRE particularly time we little where --

so still profile billion the restructuring of also have hundred some right remaining $X.X We to reducing a by but they can. yield million anticipate we and anticipate book. securities a securities anticipate investment book that And fit we up where to now, couple our dollars we additional pick

and growth. another that's think tailwind margin I kind future So to of

Manuel Navas

great. That's

full -- expansion off or December of is a legacy X.XX% talk margin you when of quarter quarter, more little basis, about in the the first a on Just off on bit number that that the of number? is

Daniel Weiss

quarter number. the of full off It's

Manuel Navas

almost you expected just might the XX of NIM expecting some the cross previously points to have kind but you're then -- you basis close, for have it above And XX there talk, at been deal? be where could

Daniel Weiss

XXXX the margin, that, that say go we that around XXXX when for think, at deal, would time, of back that I we stand-alone I to disclosed X.XX X.XX when back I I projection XXXX. announced the correct. was kind -- for say right that for was That's WesBanco

use. that's from actually see estimates. what we number, first just quarter We was the consensus so And that consensus July,

that time, X the outperform baked that can real. anticipate going to that we It's have into to XX see Since been We X.XX we're it. that XX by points. would guidance basis XX

Manuel Navas

you WesBanco -- That's new that lending in how a kind regions in looking and good where really That's you're of be about are last add teams lending of would you terms update. -- most the looking question, great. that's commercial the One add like to anywhere legacy timeline what excited to team. where

Jeffrey Jackson

Sure. Yes.

deposits, community which in Community billion -- organically our Bank, you that's $X is last loans, in billion year built think if $X year basically, about last grew your a we year. bank acquisition we of So

we at that. a have LPOs of portion And the obviously, so look driven when growth, future good

So in also to . I start I say then Nashville Indianapolis. what and looking would say, add and markets looking Knoxville tell then we're you Knoxville in would I out more to Indianapolis. more be the would is at. and shouldn't looking Those more fill to add

and Indianapolis. talented how our Of processes but always with great in do that things go course, culture, Nashville, and looking our we're in would I fit Knoxville we bankers for

Operator

will And Stephens. from today Russell our question Gunther with last be

Russell Elliott Gunther

the talked I December XX contemplate that just you NIM X And that X does Mark, two, to receiving does forma the off -- based One, pro the clarify XX about is then, restructuring? Premier. potential updated want securities then to with that XX?

Daniel Weiss

It mark. is based off of securities. It contemplate updated does of the not the fully restructuring

there's that. So

Operator

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

Jeffrey Jackson

you. Thank

$X growth of billion of delivered we billion strong strong year, levels and quality. $X while past growth that loan deposit matched by capital credit the was maintaining During

should remain to us We our operating to balance deliver net margin. on improve interest and shareholder value. have focused positive Our to sheet efficiency and successful leverage strategies continue position well organic gains and growth achieve

to our Thank investor and day. you great we a you today, at one joining for speaking with look us Have upcoming forward of events.

Operator

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

disconnect. You may now

WesBanco (WSBC) 23 Jan 252024 Q4 Earnings call transcript