WesBanco Inc (WSBCP) 2024 Q2 法說會逐字稿

Good morning.

早安.

And welcome to the WesBanco, Inc.'s second-quarter 2024 earnings and proposed merger conference call.

歡迎參加 WesBanco, Inc. 的 2024 年第二季財報和擬議合併電話會議。

(Operator Instructions) Please note this event is being recorded.

（操作員說明）請注意此事件正在被記錄。

I would now like to turn the conference over to John Iannone, Senior Vice President of Investor Relations.

現在我想將會議交給投資者關係高級副總裁約翰·伊安諾 (John Iannone)。

Please go ahead.

請繼續。

Thank you.

謝謝。

Good morning.

早安.

And welcome to WesBanco, Inc.'s second-quarter 2024 earnings and proposed merger with Premier Financial Corporation conference call.

歡迎參加 WesBanco, Inc. 的 2024 年第二季收益以及與 Premier Financial Corporation 擬議的合併電話會議。

Leading the call today are Jeff Jackson, President and Chief Executive Officer; and Dan Weiss, Senior Executive Vice President and Chief Financial Officer.

今天主持會議的是總裁兼執行長 Jeff Jackson；以及資深執行副總裁兼財務長 Dan Weiss。

Today's call, an archive of which will be available on our website for one-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., and Premier Financial Corporation, which are subject to numerous assumptions, risks, and uncertainties.

今天的電話會議的檔案將在我們的網站上提供一年，其中包含前瞻性信息，包括某些計劃、期望、目標和預測，並包括有關 WesBanco, Inc.、和Premier Financial Corporation，它們受到許多假設、風險和不確定性的影響。

In addition, presentations to which we will be referencing today were filed as parts of Forms 8-K and posted to wesbanco.com. Cautionary statements about this information and reconciliations of non-GAAP measures are included in both our earnings related and merger-related materials, as well as our other SEC filings and investor materials.

此外，我們今天將參考的簡報已作為 8-K 表格的一部分提交並發佈到 wesbanco.com。有關此資訊的警告性聲明以及非公認會計準則措施的調節均包含在我們的收益相關和合併相關資料以及我們其他 SEC 備案和投資者資料中。

These materials are available on the Investor Relations section of our website, wesbanco.com. All statements speak only as of July 26, 2024, and WesBanco and Premier undertake no obligation to update them.

這些資料可在我們網站 wesbanco.com 的投資者關係部分取得。所有聲明僅截至 2024 年 7 月 26 日，WesBanco 和 Premier 不承擔更新這些聲明的義務。

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

我現在想把電話轉給傑夫。

Jeff?

傑夫？

Thanks, John.

謝謝，約翰。

And good morning.

早安.

This is an exciting and momentous day for WesBanco.

對 WesBanco 來說，這是一個令人興奮且重要的一天。

In addition to reporting our second quarter results, we also announced an agreement to merge with Premier Financial Corp, an almost $9 billion asset bank headquartered in Defiance, Ohio.

除了報告第二季業績外，我們還宣布與 Premier Financial Corp 達成合併協議，Premier Financial Corp 是一家總部位於俄亥俄州 Defiance 的資產銀行，資產近 90 億美元。

This merger will create a community-focused regional financial services partner with more than $27 billion in assets, significant economies of scale, and strong pro forma profitability metrics.

此次合併將創造一個以社區為中心的區域金融服務合作夥伴，擁有超過 270 億美元的資產、顯著的規模經濟和強大的預期獲利能力指標。

As you noticed, we also filed two presentations: one on the proposed merger and the other is our standard earnings presentation.

正如您所注意到的，我們還提交了兩份簡報：一份關於擬議的合併，另一份是我們的標準收益簡報。

On today's call, we will review our results for the second quarter of 2024, provide our current 2024 outlook, and review our announced merger with Premier.

在今天的電話會議上，我們將回顧 2024 年第二季的業績，提供目前的 2024 年展望，並回顧我們宣布的與 Premier 的合併。

Key takeaways from the call are continued strong deposit and loan growth, a sustained focus on controlling discretionary costs, and maintaining favorable credit quality metrics.

這次電話會議的主要內容是存款和貸款持續強勁成長、持續專注於控制可自由支配成本以及維持良好的信貸品質指標。

Recognition as one of the America's greatest workplaces by Newsweek for fostering a workplace environment, where our employees feel valued, motivated, and empowered to succeed.

因營造良好的工作環境而被《新聞週刊》評為美國最偉大的工作場所之一，讓我們的員工感到受到重視、積極主動並有能力取得成功。

And finally, transformation of WesBanco into a stronger regional financial services institution.

最後，將 WesBanco 轉型為更強大的區域金融服務機構。

WesBanco sustained its positive momentum in 2024 with solid second-quarter results, characterized by continued loan and deposit growth.

WesBanco 在 2024 年保持了積極的勢頭，第二季度業績穩健，貸款和存款持續增長。

We maintained a diligent focus on cost control, while making strategic investments in our company to secure our long-term success.

我們始終致力於成本控制，同時對公司進行策略性投資，以確保我們的長期成功。

While I will provide more details on our definitive merger agreement with Premier, the announcement is evidence of our continued solid execution of our long-term growth strategy, as Premier is a great strategic, cultural, and financial fit.

雖然我將提供有關我們與 Premier 的最終合併協議的更多細節，但該公告證明了我們繼續紮實執行長期成長策略，因為 Premier 具有出色的策略、文化和財務契合度。

I would now like to turn the call over to Dan Weiss, our CFO, for a brief update on our second-quarter financial results and current outlook for 2024.

我現在想將電話轉給我們的財務長 Dan Weiss，請其簡要介紹我們第二季財務業績和 2024 年當前展望。

Dan?

擔？

Thanks, Jeff.

謝謝，傑夫。

And good morning.

早安.

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

為了強調第二季的一些成就，我們實現了強勁的同比貸款和存款成長，並保持了穩健的費用收入成長，我們對較低的費用運行率感到滿意。

For the quarter ending June 30, 2024, we reported GAAP net income available to common shareholders of $26.4 million or $0.44 per share, and when excluding after-tax restructuring and merger-related expenses, net income was $29.4 million or $0.49 per diluted share, as compared to $42.4 million or $0.71 per diluted share in the prior year period.

截至2024 年6 月30 日的季度，我們報告普通股股東可獲得的GAAP 淨利潤為2640 萬美元，即每股0.44 美元，如果不包括稅後重組和合併相關費用，淨利潤為2940 萬美元，即稀釋後每股0.49 美元，相較之下，去年同期為 4,240 萬美元，即稀釋後每股 0.71 美元。

The second quarter's results were impacted by a $10.5 million provision for credit losses, due to our strong loan growth, changes in macroeconomic factors, and a specific reserve on one C&I loan, and we also recognized $3.8 million in restructuring expense related to our branch optimization strategy.

由於我們強勁的貸款成長、宏觀經濟因素的變化以及一筆工商業貸款的特定準備金，第二季度的業績受到1,050 萬美元信貸損失撥備的影響，而且我們還確認了與分行優化相關的380 萬美元重組費用策略。

For the first time in our history, total assets have eclipsed $18 billion, driven by portfolio loans of $12.3 billion, which grew 10% year-over-year and 13% linked quarter annualized.

在 123 億美元的投資組合貸款的推動下，我們的總資產歷史上首次突破 180 億美元，年增 10%，季度環比年化增長 13%。

Our commercial loan growth continues to benefit from our commercial banker hiring and loan production office strategy and our commercial loan pipeline as of June 30 was approximately $950 million, up 30% from a year ago.

我們的商業貸款成長持續受惠於我們的商業銀行家招募和貸款生產辦公室策略，截至 6 月 30 日，我們的商業貸款管道約為 9.5 億美元，比一年前成長 30%。

Deposits of $13.4 billion were down 0.5% linked quarter, but up 4.4% year-over-year and 4% annualized from December 31, 2023.

存款為 134 億美元，季減 0.5%，但年增 4.4%，自 2023 年 12 月 31 日起年化成長 4%。

The composition of total deposits continues to experience some mix shift, but at a slower pace than experienced in prior quarters.

總存款的組成繼續經歷一些混合變化，但速度比前幾季要慢。

And today, total demand deposits and noninterest-bearing deposits as percentages of total deposits remain consistent with the percentage range prior to the pandemic, representing approximately 55% of total deposits and 28.5%, respectively.

如今，活期存款總額和無利息存款佔存款總額的百分比與疫情前的百分比範圍保持一致，分別約佔存款總額的55%和28.5%。

Credit quality stability continues with key metrics that have remained low from a historical perspective and within a consistent range throughout the last two-plus years.

信貸品質持續保持穩定，從歷史角度來看，關鍵指標一直保持在較低水平，並且在過去兩年多的時間裡保持在一致的範圍內。

The allowance for credit losses totaled -- total portfolio of loans at June 30, 2024, increased 2 basis points to 1.11% of total loans, which, as I mentioned, resulted in a $10.5 million provision for credit losses due to strong second quarter loan growth, a higher unemployment assumption, and a specific reserve for an individual C&I loan.

信貸損失準備金總額－截至2024 年6 月30 日的貸款組合總額增加了2 個基點，佔貸款總額的1.11%，正如我所提到的，由於第二季貸款強勁，導致信貸損失準備金達到1,050 萬美元成長、較高的失業率假設以及個人工商業貸款的特定準備金。

This C&I loan was in the renewable energy industry and is fully reserved at $3.3 million.

這筆 C&I 貸款針對再生能源產業，全額預留 330 萬美元。

Our second quarter net interest income of 2.95% continues to reflect higher funding costs from the remix of noninterest-bearing deposits into higher tier money market and certificate deposit accounts offset by loan growth and the benefit of higher rates on earning assets.

我們第二季的淨利息收入為2.95%，繼續反映了無息存款重新混合到更高層次的貨幣市場和存單存款帳戶帶來的更高的融資成本，但被貸款增長和生息資產利率上升的好處所抵消。

The margin increased 3 basis points sequentially, as higher loan yields outpaced higher funding costs.

由於貸款收益率上升超過了融資成本上升，利潤率連續上升 3 個基點。

And the NIM improvement was somewhat driven by the deposit growth that we experienced in the first quarter, which fully funded first quarter loan growth.

淨利差的改善在一定程度上是受到第一季存款成長的推動，這為第一季貸款成長提供了充足的資金。

Noninterest income for the second quarter of 2024, a $31.4 million decreased, $500,000 or 1.5% from the prior year, primarily due to lower net swap fee and valuation income, as well as higher gains on other real estate owned and other assets in the prior year period.

2024 年第二季非利息收入減少3,140 萬美元，比前一年減少50 萬美元，即1.5%，主要是由於淨掉期費用和估值收入下降，以及去年擁有的其他房地產和其他資產的收益增加年期間。

Excluding restructuring and merger-related expenses, noninterest expense for the three months ended June 30, 2024, totaled $98.6 million, a 2.3% increase year-over-year, primarily due to increases in other operating expenses and equipment and software expenses.

不包括重組和合併相關費用，截至2024年6月30日的三個月非利息費用總計9860萬美元，年增2.3%，主要是由於其他營運費用以及設備和軟體費用的增加。

Included within the second quarter salary expense is roughly $900,000 related to the acceleration of stock-based compensation and salary expense, which are not expected to repeat.

第二季薪資支出包含約 90 萬美元，與股票薪資和薪資支出的加速相關，預計不會重複。

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

我們還經歷了在其他費用中確認的更高的 Reg E 損失，我們認為這些損失本質上是孤立的，預計未來不會重複。

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

我們的資本狀況依然強勁，監管資本比率高於適用的資本充足標準以及與同行相比有利的有形股本水平就證明了這一點。

Turning to the outlook.

轉向前景。

In the current operating environment, we are currently modeling two rate cuts in the back half of the year, followed by three more cuts in 2025, which are not expected to have a significant impact on 2024 results due to the timing of the cuts.

在當前的營運環境下，我們目前正在模擬下半年兩次降息，然後在 2025 年再降息三次，由於降息的時間安排，預計不會對 2024 年業績產生重大影響。

The net interest margin in the third quarter is modeled to be relatively consistent with the second quarter in the low to mid-90% range, mostly dependent upon deposit growth to fund the third quarter loan growth, and we modeled the fourth quarter to be in the mid- to upper 290s as assets continue to reprice higher and at a faster pace than deposits.

第三季的淨利差被建模為與第二季在 90% 的中低範圍內相對一致，主要依賴存款成長為第三季貸款成長提供資金，我們對第四季的建模為隨著資產繼續以比存款更快的速度重新定價，在290 年代中上層。

We anticipate noninterest income to remain relatively consistent with second quarter trends, while expenses will be impacted by midyear merit increases as well as a late summer marketing campaign.

我們預計非利息收入將與第二季的趨勢保持相對一致，而支出將受到年中績效成長以及夏末行銷活動的影響。

The provision for credit losses will mostly be dependent upon loan growth, economic factors and charge-offs and expect to come in somewhat lower than the second quarter, while our effective tax rate should remain in the 18% range.

信貸損失準備金將主要取決於貸款成長、經濟因素和沖銷，預計略低於第二季度，而我們的有效稅率應保持在 18% 的範圍內。

And lastly, we've continued to review our financial center network based on customer preferences and to ensure optimal distribution to best serve our customers.

最後，我們繼續根據客戶偏好審查我們的金融中心網絡，並確保最佳分配，以最好地為客戶服務。

And as a result, we've identified 12 locations to consolidate.

因此，我們確定了 12 個地點進行整合。

We've recognized $3.8 million of restructuring expenses this quarter and anticipate annual savings of approximately $4 million, the majority of which will begin to be realized toward in 2025.

本季我們確認了 380 萬美元的重組費用，預計每年節省約 400 萬美元，其中大部分將於 2025 年開始實現。

And with that, I'll turn it back to you, Jeff.

說到這裡，我會把它轉回給你，傑夫。

Thanks, Dan.

謝謝，丹。

Our long-term growth strategy is focused on several key pillars: building a diversified loan portfolio, distinct revenue capabilities, digital banking service strategies, and a core funding advantage and franchise enhancing expansion.

我們的長期成長策略專注於幾個關鍵支柱：建立多元化的貸款組合、獨特的收入能力、數位銀行服務策略以及核心融資優勢和特許經營增強擴張。

These pillars stand strong, thanks to two foundational principles that have guided our company for nearly 155 years.

這些支柱之所以屹立不倒，得益於近 155 年來一直指導我們公司的兩項基本原則。

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

首先是我們堅定不移地致力於提供積極的營運槓桿，同時進行必要的成長導向和風險防範投資。

The second is our commitment to our strong culture of credit quality, risk management, and compliance.

第二是我們對信用品質、風險管理和合規的強大文化的承諾。

This transformational day in WesBanco's history is built on that foundation.

WesBanco 歷史上這個變革性的日子就是建立在這基礎上的。

And I'm extremely pleased to share more details with you today.

我今天非常高興與您分享更多細節。

The proposed merger with Premier brings together two high-quality institutions with highly compatible cultures and business models to create a community-focused regional financial service partner.

這次與Premier的合併，將兩家文化和商業模式高度相容的優質機構結合在一起，打造一個以社區為中心的區域金融服務合作夥伴。

Premier is a strong and sound community-based financial institution with a diversified loan portfolio of $6.8 billion and a wealth division with approximately $1.5 billion of assets under management and advisory.

Premier 是一家實力雄厚、穩健的社區金融機構，擁有 68 億美元的多元化貸款組合，以及管理和諮詢資產約 15 億美元的財富部門。

That augments our 100-plus year-old wealth management business.

這增強了我們已有 100 多年歷史的財富管理業務。

As we have gotten to know Premier, we are excited to welcome them to the WesBanco family, and provide their customers with a broader array of banking services including expanded commercial lending and treasury management capabilities and additional wealth management solutions.

隨著我們對 Premier 的了解，我們很高興歡迎他們加入 WesBanco 大家庭，並為他們的客戶提供更廣泛的銀行服務，包括擴大商業貸款和資金管理能力以及其他財富管理解決方案。

We share a customer-centric philosophy and focus on the success of the communities we serve.

我們秉持以客戶為中心的理念，並專注於我們所服務的社區的成功。

Through our merger, we will bring the best of both companies to our customers and communities, and position ourselves to deliver improved value for our stakeholders.

透過合併，我們將把兩家公司的優勢帶給我們的客戶和社區，並為我們的利害關係人提供更高的價值。

Further, we are optimistic that organizing around customer services and product delivery can be accomplished with as little employee disruption as possible.

此外，我們樂觀地認為，圍繞客戶服務和產品交付的組織可以在盡可能減少員工幹擾的情況下完成。

This proposed merger makes sense on a number of fronts, including increased scale, enhanced financial performance, excellent cultural fit, and valuation upside.

此次擬議的合併在許多方面都是有意義的，包括擴大規模、增強財務表現、出色的文化契合度和估值上升空間。

With complementary and contiguous geographic footprint, our combined organization will have more than $27 billion in assets, providing significant economies of scale.

憑藉互補且連續的地理足跡，我們合併後的組織將擁有超過 270 億美元的資產，從而提供顯著的規模經濟。

This combination will propel us to a position as the eighth largest bank in the State of Ohio based on deposit market share, while enhancing our existing presence in Indiana and providing an entrance into Michigan.

這項合併將使我們成為俄亥俄州第八大銀行（以存款市佔率計算），同時增強我們在印第安納州的現有業務並提供進入密西根州的機會。

From a financial standpoint, we anticipate strong 2025 EPS accretion of 40%-plus, driven by cost synergies and net interest margin improvement.

從財務角度來看，在成本綜效和淨利差改善的推動下，我們預期 2025 年每股盈餘將強勁成長 40% 以上。

We also anticipate meaningful improvement in our pro forma profitability metrics, including net interest margin improving 40 basis points to 3.46%.

我們也預期獲利指標將出現顯著改善，包括淨利差提高 40 個基點至 3.46%。

Return on average assets up 30 basis points to 1.2% and return on average tangible common equity improving 557 basis points to 16.9%.

平均資產報酬率上升 30 個基點，達到 1.2%，平均有形普通股報酬率提高 557 個基點，達到 16.9%。

Further, we see opportunities for valuation upside, priced to 2025 earnings multiple of 8.6 times and a 59% pro forma increase in market cap.

此外，我們看到估值上漲的機會，預計 2025 年本益比將達到 8.6 倍，預計市值將成長 59%。

As can be seen in the merger presentation, our pro forma profitability metrics put us in the top half of the peer group of banks headquartered in the Mid-Atlantic, Midwest, and Southeast, with total assets between $20 billion and $40 billion.

從合併演示中可以看出，我們的預期獲利能力指標使我們在總部位於大西洋中部、中西部和東南部的銀行同行中名列前茅，總資產在 200 億至 400 億美元之間。

On a pro forma basis at closing, we will have a very strong balance sheet with $27 billion in assets, $21 billion in deposits, $19 billion in loans, and tangible common equity of $2 billion, driving a total risk-based capital ratio of 13.2%.

以預計交割時的計算，我們將擁有非常強勁的資產負債表，其中資產為 270 億美元，存款為 210 億美元，貸款為 190 億美元，有形普通股為 20 億美元，總風險資本比率為 13.2 %。

I would like to turn the call back over to Dan to review some of the key terms and financials of the proposed merger.

我想將電話轉回丹，以審查擬議合併的一些關鍵條款和財務狀況。

Dan?

擔？

Thanks, Jeff.

謝謝，傑夫。

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

正如您在合併演示中所看到的，Premier 與 WesBanco 非常相似，擁有穩定且精細的存款基礎，與其多樣化的貸款組合相輔相成，並且信用品質指標與 WesBanco 和同行集團相當。

During the last couple of months, nearly 80 WesBanco employees performed a comprehensive due diligence review of Premier with a focus on commercial and retail banking, wealth management, operations, facilities, HR, risk management, and IT.

在過去的幾個月裡，近 80 名 WesBanco 員工對 Premier 進行了全面的盡職調查，重點是商業和零售銀行、財富管理、營運、設施、人力資源、風險管理和 IT。

We also reviewed the majority of Premier's commercial loan portfolio as well as hired a third-party valuation services firm, to assist in the review of the credit and interest marks.

我們也審查了Premier的大部分商業貸款組合，並聘請了第三方評估服務公司，協助審查信用和利息標記。

This is a 100% stock deal at a fixed exchange ratio of 0.80 shares of WesBanco on stock for each share of Premier with WesBanco ultimately representing over 60% of the combined pro forma company.

這是一項 100% 的股票交易，固定兌換比例為每股 Premier 股票兌換 0.80 股 WesBanco 股票，而 WesBanco 最終佔合併後備考公司 60% 以上的股份。

The deal is valued at approximately $960 million with over 40% earnings per share accretion in 2025, tangible book value dilution of approximately 13%, and an associated tangible book value earn back of less than three years.

該交易價值約 9.6 億美元，到 2025 年每股收益將成長超過 40%，有形帳面價值稀釋約 13%，相關有形帳面價值回本不到三年。

Importantly, when excluding the rate marks in core deposit intangible, 2025 earnings per share accretion is approximately 30%, while both tangible book value dilution and earned back are neutral.

重要的是，當排除核心存款無形資產的利率標記時，2025 年每股收益成長約為 30%，而有形帳面價值稀釋和賺回均為中性。

In conjunction with the transaction, we've raised $200 million in common equity in order to maintain strong capital levels.

透過此交易，我們籌集了 2 億美元的普通股，以維持強勁的資本水準。

There are no changes to our executive leadership team, but we do anticipate additions to key line of defense functions like compliance, BSA, AML, fraud prevention, loan review, among others, and four current directors of Premier Financial Corporation will be appointed to the WesBanco Board of Directors.

我們的執行領導團隊沒有變化，但我們預計會增加關鍵的防線職能，如合規、BSA、AML、詐欺預防、貸款審查等，並且 Premier Financial Corporation 的四名現任董事將被任命為韋斯銀行董事會。

With yesterday's signed definitive merger agreement, the merger will require as well customary shareholder and regulatory approvals.

隨著昨天簽署的最終合併協議，合併也需要股東和監管機構的慣例批准。

To highlight some of the key transaction assumptions, the earnings projections were based on consensus estimates through 2025 and increasing 5% thereafter.

為了強調一些關鍵的交易假設，獲利預測是基於 2025 年之前的共識預測，此後增加 5%。

We anticipate cost saves of approximately 26% of Premier's expense base or $41 million with 75% realized during 2025 and 100% thereafter.

我們預計 Premier 的費用基礎將節省約 26% 或 4,100 萬美元，其中 2025 年將達到 75%，此後實現 100%。

Further, both companies use the same core system and the BSA/AML platform, which will benefit the integration and conversion.

此外，兩家公司使用相同的核心系統和BSA/AML平台，有利於整合和轉換。

Onetime merger expenses are anticipated to be $72 million, primarily driven by contract termination charges, severance, retention and employment agreements, professional fees, and integration expenses.

一次性合併費用預計為 7,200 萬美元，主要由合約終止費用、遣散費、保留和僱傭協議、專業費用和整合費用驅動。

We also expect to invest roughly $13 million into the branch network between signage, branch upgrades, and ATM upgrades assumed to be amortized over about a 15-year period.

我們也預計在標牌、分公司升級和 ATM 升級之間向分公司網路投資約 1,300 萬美元，假設在大約 15 年期間攤提。

Our model also assumes a conservative credit mark of 1.8% or approximately $120 million, which is about 50% higher than Premier's allowance for credit losses, with roughly 40% to the PCD book and 60% to non-PCD.

我們的模型還假設保守的信貸額度為 1.8%，約 1.2 億美元，這比 Premier 的信貸損失準備金高出約 50%，其中 PCD 帳面佔比約 40%，非 PCD 佔比約 60%。

The interest mark came in at just under 5% or $326 million and the core deposit intangible is estimated to be $148 million or roughly 3.4% of deposits, when excluding time deposits and public funds.

利息率略低於 5%，即 3.26 億美元，核心無形存款估計為 1.48 億美元，約佔存款的 3.4%（不包括定期存款和公共資金）。

As it relates to the other assumptions, within the securities portfolio, we do expect to sell roughly $200 million of that portfolio to better align with our investment profile with proceeds used to pay down borrowings.

由於與證券投資組合中的其他假設相關，我們確實預計出售該投資組合中約 2 億美元，以更好地與我們的投資狀況保持一致，並將所得收益用於償還借款。

We also expect to use the proceeds from the capital raise to pay down borrowings.

我們也預計將利用籌集資金的收益來償還借款。

And then finally, we plan to exit Premier's cash flow hedges at close.

最後，我們計劃在收盤時退出 Premier 的現金流對沖。

Upon the successful closing of the transaction, we anticipate strong capital ratios of 8.6% leverage, 9.6% CET1, and 13.2% total risk-based capital ratio, an approximate 91% loan-to-deposit ratio and enhanced 2025 profitability metrics of 3.46% net interest margin and low 50% efficiency ratio, all of which are better than the peer group median.

交易成功完成後，我們預期槓桿率將達到 8.6%，CET1 為 9.6%，總風險資本率為 13.2%，貸存比約為 91%，2025 年獲利指標將提高至 3.46%淨利差和低50 %的效率比率均優於同業中位數。

Jeff, I'll turn it back to you.

傑夫，我會把它還給你。

Thanks, Dan.

謝謝，丹。

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

正如您剛才所聽到的，這對 WesBanco 和 Premier 來說確實是一項變革性的交易，具有大量的協同效應和長期利益。

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

我們各自的足跡相得益彰，擴大了規模，提高了效率，更不用說成為俄亥俄州第八大銀行了。

Our cultures are highly compatible, ensuring continuity and familiarity for our employees, customers, communities, and shareholders.

我們的文化高度相容，確保我們的員工、客戶、社區和股東的連續性和熟悉度。

The combination of our two strong and sound companies provides significantly boosted financial performance with meaningful improvement in 2025 pro forma financial metrics as well as potential valuation upside.

我們兩家實力雄厚、穩健的公司的合併顯著提升了財務業績，2025 年預計財務指標顯著改善，並具有潛在的估值上漲空間。

Lastly, we have demonstrated a history of successful acquisitions that benefit all stakeholders.

最後，我們展示了使所有利害關係人受益的成功收購歷史。

These synergies give us every expectation of success as we begin working together on the transition.

當我們開始共同努力進行過渡時，這些協同效應給了我們成功的期望。

We are now ready to take your questions.

我們現在準備好回答您的問題。

Operator, would you please review the instructions?

接線生，請您查看說明嗎？

(Operator Instructions) Karl Shepard, RBC Capital Markets.

（操作員指示）Karl Shepard，RBC 資本市場。

Hey.

嘿。

Good morning, guys.

早安，夥計們。

Good morning.

早安.

Good morning, Karl

早安，卡爾

So congrats on the announcement, and I guess to start there.

恭喜您宣布這項消息，我想就從這裡開始。

Can you talk about the process of getting to know Premier better?

能談談進一步了解Premier的過程嗎？

And why are you confident that this is such a strong cultural fit?

為什麼您相信這是一種如此強大的文化契合度？

Sure.

當然。

So we've known Premier for several years.

我們認識 Premier 已經好幾年了。

And so the process, I started talking with Gary back in January at AOBA conference.

在這個過程中，我在一月份的 AOBA 會議上開始與加里交談。

And as we got the talk and some of our peers talk to each other, we realized we had a lot of synergies and similar characteristics.

當我們進行演講並且我們的一些同行互相交談時，我們意識到我們有很多協同作用和相似的特徵。

It almost feels like we're acquiring kind of a smaller version of ourselves because of the rural and metro markets.

由於農村和都市市場，我們幾乎感覺自己正在獲得縮小版的自己。

And so the process started formally kind of end of January.

這個過程在一月底正式開始。

We met with Don Hileman and our Chairman, Chris Criss and myself in February, and then really took off from there from a due diligence perspective.

我們在二月會見了唐·希勒曼（Don Hileman）和我們的董事長、克里斯·克里斯（Chris Criss）和我本人，然後從盡職調查的角度真正開始了。

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

因此，當我們繼續研究這個問題時，我們也意識到，我們的許多關鍵管理人員，特別是我們的銀行長 Jay Zatta，過去曾與他們的許多員工、董事會成員和管理人員共事。

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

您可能還知道我們的前任執行長 Todd Closin 在克利夫蘭和托萊多度過了很多時間，因此非常熟悉他們及其特許經營權以及他們的一些員工。

And so as we continue, we really like their granular rural deposit base.

因此，隨著我們的繼續，我們真的很喜歡他們細緻的農村存款基礎。

And we also like the markets from a growth perspective when we look at C&I.

當我們審視 C&I 時，我們也從成長的角度看好這個市場。

If you think about Northern Ohio and the manufacturing that goes on there, you look at the kind of political landscape, where everybody is trying to bring back jobs to America, whether it's in Michigan or Ohio, we just felt like it was just a really great fit from a cultural perspective, a growth perspective and that's kind of how it started.

如果你想想俄亥俄州北部和那裡的製造業，你會看到那種政治格局，每個人都試圖將就業機會帶回美國，無論是在密西根州還是俄亥俄州，我們只是覺得這只是一個真正的從文化角度、成長角度來看，兩者非常契合，這就是它的開始。

And we feel really great about this.

我們對此感覺非常好。

Okay.

好的。

That's helpful.

這很有幫助。

And then as a follow-up, I know you guys have done a number of deals in the past, but this one is a little bit larger.

作為後續行動，我知道你們過去已經做過很多交易，但這次規模更大一些。

Are there investments you need to make alongside this to kind of read the infrastructure of the company to be close to $30 billion in assets cost?

您是否還需要進行其他投資才能了解該公司的基礎設施資產成本接近 300 億美元？

I don't think there's a lot of investments, we're going to make to be $30 billion.

我認為投資不會很多，我們的投資金額不會太多，最多 300 億美元。

We've been kind of working through this.

我們一直在努力解決這個問題。

We went through the core change a couple of years ago.

幾年前我們經歷了核心變革。

We're on FIS, IBS, Premier is also on that system.

我們使用 FIS、IBS，Premier 也在該系統上。

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

我們也使用相同的 BSA/AML 系統。

And so I think where we would add investments, and we're looking at that, is on the compliance side and the risk side.

因此，我認為我們將在合規方面和風險方面增加投資，並且我們正在考慮這一點。

We do have in the model, adding significant people there just to make sure we are ready for that.

我們確實在模型中添加了重要的人員，以確保我們為此做好準備。

And a lot of that would just be taking people that currently work at Premier and integrating them within our group on the risk management side.

其中許多只是將目前在 Premier 工作的人員納入我們的風險管理團隊。

Thanks for your help.

感謝您的幫助。

Thanks, Karl.

謝謝，卡爾。

Catherine Mealor, KBW.

凱瑟琳·梅勒，KBW。

Guys, good morning.

夥計們，早安。

And congrats on this deal.

祝賀這筆交易。

Thanks, Catherine.

謝謝，凱瑟琳。

And good morning.

早安.

I wanted -- another question just on the merger.

我想問另一個關於合併的問題。

Can you just talk to us, I know you've put out maybe your thoughts on the combined margin after the marks and putting the two balance sheets together.

您能和我們談談嗎？

But thinking more broadly kind of holistically, can you talk to us about what the balance sheet looks like on a pro forma basis in terms of kind of asset sensitivity, liability sensitivity?

但從更廣泛的整體角度思考，您能否與我們談談資產負債表在資產敏感度、負債敏感度方面的預期情況？

It feels like perhaps this acquisition will make you, I assume, a little bit more liability sensitive.

我認為，這次收購可能會讓你對責任更加敏感。

And so maybe just kind of what that looks like maybe first, if rate cuts take longer to come, the kind of risk there?

因此，首先，如果降息需要更長的時間，那麼可能會出現什麼樣的風險？

And then what upside you could see from the margin and just the balance sheet once we start to get in the Fed-cutting environment?

那麼，一旦我們開始進入聯準會降息環境，您可以從利潤率和資產負債表中看到哪些上行空間？

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

是的，凱瑟琳，我會繼續接受的。

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

如果您單獨考慮我們，我們對資產稍微敏感。

And Premier, on a stand-alone basis, is slightly liability sensitive.

就獨立而言，Premier 對責任略有敏感。

So I think whenever you kind of combine the two, we would expect to continue to be slightly asset sensitive from that standpoint.

因此，我認為，無論何時將兩者結合起來，從這個角度來看，我們都希望繼續對資產稍微敏感。

But if we think about the kind of the mix of their loan portfolio versus ours in terms of variable rate, fixed rate and adjustable rate, they're a little bit heavier on the fixed rate side, right around 50% is fixed with about 25% variable and another 25% adjustable, whereas we are less heavy on the fixed rate side, 70% or so variable rate with 40% of our book is -- reprices every three months.

但如果我們考慮他們的貸款組合與我們的可變利率、固定利率和可調利率的組合，他們的固定利率偏重一點，大約 50% 左右是固定利率，大約 25% 是固定利率。利率和另外25% 可調利率，而我們在固定利率方面的比重較小，70% 左右的可變利率（占我們帳簿的40%）是——每三個月重新定價一次。

So if we think about longer term, obviously, to the extent that we see rate cuts, and as I said in my prepared commentary, we expect two cuts here in '24 and three more in '25.

因此，如果我們考慮更長期的情況，顯然，我們會看到降息，正如我在準備好的評論中所說，我們預計 24 年會降息兩次，25 年還會降息三次。

But certainly, we're -- both banks on a combined basis are going to benefit from cuts.

但當然，兩家銀行綜合起來都將從削減中受益。

No question about that.

毫無疑問。

But yeah, I think we would continue to be slightly asset sensitive in that kind of static rate shock environment.

但是，是的，我認為在這種靜態利率衝擊環境下，我們將繼續對資產稍微敏感。

Russell Gunther, Stephens.

拉塞爾·岡瑟，史蒂芬斯。

Hey.

嘿。

Good morning, guys.

早安，夥計們。

Hey.

嘿。

Good morning, Russell.

早上好，拉塞爾。

Good morning, Russell.

早上好，拉塞爾。

Could you guys talk a bit more about the decision to raise capital, particularly the amount you guys raised relative to kind of pro forma CET1?

你們能否多談談籌集資金的決定，特別是相對於形式 CET1 籌集的金額？

I think you're looking for 9.6%, and also address the CRE concentration pro forma, around 299%.

我認為您正在尋找 9.6%，並且還解決了 CRE 濃度預期問題，約 299%。

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

只是有助於了解您對這些預期比率的舒適程度嗎？

Yeah.

是的。

Sure, Russell.

當然，拉塞爾。

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

因此，籌集資金數量的一個重要決定因素實際上是我們評估相對於我們資本比率的稀釋程度。

So to your point, when we think about CET1 and leverage.

因此，當我們考慮 CET1 和槓桿時，就您的觀點而言。

We want -- we were targeting to hold a leverage ratio above 8.5% on a consolidated basis and a CET1 of above 9.5%.

我們希望－我們的目標是將合併槓桿率保持在8.5%以上，CET1保持在9.5%以上。

So from that standpoint, you can see on a pro forma basis, as you pointed out, we are just above those kind of thresholds that we set internally.

因此，從這個角度來看，正如您所指出的，您可以在預期的基礎上看到，我們剛剛高於我們內部設定的閾值。

And then, if we think about the CRE concentration on a pro forma basis, it's 299%, just under the regulatory guidelines of 300%.

然後，如果我們按預估計算 CRE 的集中度，則為 299%，僅低於 300% 的監管指導方針。

That was important for us as well to evaluate, and obviously want to continue to be cognizant of that ratio.

這對於我們的評估也很重要，並且顯然希望繼續了解這個比率。

One of the things that we do have in our model, of course, that CRE concentration is based on total risk-based capital at the bank level, so what we have assumed, and it's in the model here, is that we would push down the $200 million in capital raise down to the bank.

當然，我們的模型中確實存在的一件事是，商業房地產集中度是基於銀行層面基於風險的資本總額，因此我們假設，並且在此處的模型中，我們將推低向銀行籌集的2 億美元資金。

We've also got an assumed $25 million more push down.

我們也假設再追加 2500 萬美元。

And then, I would tell you that in terms of evaluating through the evaluation of the credit marks, the loan portfolio, which was very detailed and bottoms up, we identified a portfolio of, call it, about $100 million or so that we'd like to explore further in terms of exiting.

然後，我想告訴你們，在透過信用評分評估來評估貸款組合方面，這是非常詳細和自下而上的，我們確定了一個大約 1 億美元左右的投資組合，這樣我們就可以喜歡在退出方面進一步探索。

So you combine those items, you kind of get to that 299% that we came up with -- on a pro forma basis.

因此，將這些項目結合起來，就可以達到我們預估的 299%。

Okay.

好的。

Thanks.

謝謝。

I appreciate the thoughts there.

我很欣賞那裡的想法。

And then just as my follow-up, the pro forma NIM, appreciate the guide.

然後，正如我的後續人員（準備 NIM）一樣，感謝該指南。

It would be helpful to get your thoughts on just the magnitude of purchase accounting.

了解您對採購核算規模的想法會很有幫助。

And how that -- you would expect that to trend throughout '25 and as we start thinking about '26?

當我們開始考慮 26 年時，您預計這種趨勢會在整個 25 年中如何發展？

Sure.

當然。

So you can see this within the deck, but just maybe to provide a little bit more color here.

所以你可以在甲板上看到這一點，但也許只是為了在這裡提供更多的顏色。

We've got assumed a rate mark on the loan portfolio of about $325 million, a non-PCD mark of about $70 million.

我們假設貸款組合的利率標記約為 3.25 億美元，非 PCD 標記約為 7000 萬美元。

And we are -- we actually had an outside third-party valuation firm, prepare that those marks for us given the size of the deal, and we -- in terms of accretion, we didn't make kind of the assumption that you might see in other deals where it's just estimating a five-year straight line accretion.

我們 - 我們實際上有一家外部第三方評估公司，考慮到交易的規模，為我們準備這些標記，而且我們 - 就增值而言，我們沒有做出這樣的假設：在其他交易中，我們看到它只是估計五年的直線成長。

We actually used the actual accretion that came out of the book to determine those marks and the accretion over the life of the portfolio.

我們實際上使用了書中的實際增值來確定這些標記以及投資組合生命週期中的增值。

What we saw was basically, on an after-tax basis, that accretion was right around $55 million in year one.

我們看到的基本上是，在稅後基礎上，第一年的增加額約為 5500 萬美元。

And if we think about kind of the makeup of that -- of the portfolio.

如果我們考慮一下投資組合的組成。

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

如您所知，Premier 在 1 到 4 的空間中稍重一些。

And so a lot of their -- that one to four family think longer-term fixed rate mortgages.

因此，他們中的許多人（一到四個家庭）都考慮長期固定利率抵押貸款。

A lot of that was originated during the mortgage boom a couple of years ago, when rates were pretty low.

其中許多起源於幾年前的抵押貸款繁榮時期，當時利率相當低。

So we do think that if we think about the timing of that, the accretion and particularly on the one to four family book, that has a little bit longer duration, longer life.

所以我們確實認為，如果我們考慮一下時間，特別是一到四本家庭書籍的增長，它的持續時間會更長一些，壽命也會更長一些。

It's actually a weighted average rate of about 82 months.

實際上是大約 82 個月的加權平均利率。

So call it, seven years.

就這樣吧，七年。

And so we do think that that accretion will be on the books and recognized for a bit longer maybe than what you might see in other deals.

因此，我們確實認為這種增長將記錄在案，並得到認可的時間可能比您在其他交易中看到的要長一些。

And you think that there's also quite a bit of opportunity there in terms of -- when we think about a lot of these mortgages were originated at 3.5% or lower, the rate that they're coming on our books once marked -- we're call it a 27-year life on a 30-year fixed rate that was originated three years ago is going to come on to our books today around 6.5%, 7%.

你認為，當我們考慮到許多抵押貸款的利率為 3.5% 或更低時，一旦我們的帳簿標記出這些利率，我們就會認為那裡還有相當多的機會。的30 年期固定利率的27 年壽命，今天將在6.5%、7% 左右出現在我們的帳簿上。

And so we have the benefit of that accretion, recognizing that yield over the life of these loans.

因此，我們可以從這種增值中受益，並認識到這些貸款在整個生命週期內的收益率。

And there's pretty low risk, I would say, of prepayment risk, if you will, because just as an individual, if you can -- you're unlikely to refinance a 3.5% fixed rate mortgage.

我想說，如果你願意的話，提前還款的風險相當低，因為作為個人，如果可以的話，你不太可能為 3.5% 的固定利率抵押貸款再融資。

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

因此，我們認為這將非常具有黏性，並且會在相當長的一段時間內被記錄下來。

That's great color, Dan.

這顏色真棒，丹。

Thank you very much.

非常感謝。

Catherine Mealor, KBW.

凱瑟琳·梅勒，KBW。

Hey.

嘿。

I'm back.

我回來了。

I was needed when I was asking my follow-up.

當我詢問後續情況時，需要我。

So thank you for letting me jump back in.

所以謝謝你讓我重新加入。

One follow-up I had to the margin was you mentioned that you're going to pay down Premier's bond book.

我的一個後續行動是你提到你將償還總理的債券帳簿。

And it looks like some of it is going to come with the paydown in borrowing.

看起來其中一部分將透過償還借款來支付。

For the remainder of proceeds in that, would you expect to put it back into the securities portfolio?

對於剩餘的收益，您是否希望將其重新投入證券投資組合中？

Or is that excess cash flow, just going to be used for loan growth moving forward?

或者說，多餘的現金流只是用於未來的貸款成長？

Yes.

是的。

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

因此，多餘的現金，計劃將用於償還他們的批發借款，包括證券銷售以及透過融資籌集的現金。

So about $400 million in total.

總共約為 4 億美元。

Obviously, $200 million will be applied here in August, which will also kind of, as you can imagine, help our margin a little as we're paying down our own FHLB borrowings.

顯然，8 月將使用 2 億美元，正如你可以想像的那樣，這也將在某種程度上幫助我們償還我們自己的 FHLB 借款。

But yeah, that's where we're at.

但是，是的，這就是我們現在的情況。

Okay.

好的。

So a total of $400 million in borrowings pay down?

那麼總共需要償還 4 億美元的借款嗎？

Yeah, correct.

是的，正確。

That's right.

這是正確的。

Okay.

好的。

Great.

偉大的。

And then, one other follow-up on the capital question.

然後是關於資本問題的另一個後續行動。

Can you -- or have you disclosed where the capital was raised at what price?

您能否—或者您是否透露了資金是在哪裡以什麼價格籌集的？

Yeah.

是的。

That is disclosed, Catherine.

這是公開的，凱瑟琳。

That's in the -- I means, that's in the joint merger announcement release, and that was $27.50.

那是——我的意思是，那是在聯合合併公告中，那是 27.50 美元。

Okay.

好的。

Great.

偉大的。

I missed that.

我錯過了。

All right.

好的。

Thank you for letting me jump back in.

謝謝你讓我重新跳進去。

Okay, Catherine.

好的，凱瑟琳。

David Bishop, Hovde Group.

大衛畢肖普，霍夫德集團。

Yeah.

是的。

Good morning, gentlemen.

早安，先生們。

And congrats on the deal as well.

也祝賀這筆交易。

Thank you.

謝謝。

Good morning.

早安.

Hey, Jeff, I know in the past, you guys have had pretty good success as of late overlaying some swap products, generating some good fee income.

嘿，傑夫，我知道過去，你們最近在疊加一些掉期產品方面取得了相當大的成功，產生了一些不錯的費用收入。

Any opportunities to do that similarly there?

那裡有類似的機會嗎？

And is that in the numbers?

這在數字中嗎？

Or are there areas you can opt on the fee income side from here?

或者您可以從這裡選擇費用收入的哪些領域？

Yeah.

是的。

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

我認為Premier有很多機會，因為它與掉期有關，因為它與我們推出了許多新的資金產品有關。

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

我認為，當我們考慮成為一家更大的銀行，為該地區帶來更大的資產負債表時，我們可以考慮與 C&I 方面建立全面的關係，並提供那些他們可能無法提供的產品在過去這樣做。

The other thing I would say is we do have a very robust wealth and treasury -- wealth and trust business, and I believe there's a lot of opportunity there.

我想說的另一件事是，我們確實擁有非常強大的財富和國庫——財富和信託業務，我相信那裡有很多機會。

They have a good-sized portfolio, but we believe there's some nice growth built in as well within that footprint.

他們擁有規模龐大的投資組合，但我們相信在這個足跡中也有一些不錯的成長。

Got it.

知道了。

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

相反，也許在貸款方面，有任何新的業務線可以補充您在傳統 WesBanco 上所做的事情嗎？

Thank you.

謝謝。

I don't think there's any new business lines that they would have.

我認為他們不會有任何新的業務線。

They have a couple of smaller portfolios in ag, about $200 million.

他們在農業領域有幾個較小的投資組合，大約 2 億美元。

We're not in ag.

我們不在ag。

But other than that, they're -- like I said, they're very similar to us.

但除此之外，正如我所說，他們與我們非常相似。

I mean just your bread and butter, C&I, CRE lending, really great credit levels.

我的意思是你的麵包和黃油、商業與工業、商業房地產貸款、非常好的信用水平。

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

因此，我們再次感覺，我們正在收購我們的迷你版，並且非常感謝我們與他們所做的工作，並且感覺我們將能夠在這些地區擴大他們的投資組合。

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

我想指出的另一件事是，您可能知道，我們在克利夫蘭和阿克倫-坎頓設有 LPO，顯然，在哥倫布也有良好的存在。

So this just really helps us with our growth in those markets.

因此，這確實有助於我們在這些市場的成長。

But overall, I feel like there is some nice growth that we'll be able to see from the loan side.

但總的來說，我覺得我們可以從貸款方面看到一些不錯的成長。

Perfect.

完美的。

Thanks.

謝謝。

(Operator Instructions) Daniel Cardenas, Janney Montgomery Scott.

（操作員說明）丹尼爾·卡德納斯、詹尼·蒙哥馬利·斯科特。

Good morning, guys.

早安，夥計們。

Hey.

嘿。

Good morning, Dan.

早上好，丹。

Good morning, Dan.

早上好，丹。

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

這是一個簡短的問題，也許我錯過了，但是您預計交易何時結束？

We would anticipate probably first quarter next year.

我們預計可能是明年第一季。

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

我們已經與監管機構進行了良好的初步討論，並且顯然對提交申請感到滿意，但我們的目標是明年第一季。

Perfect.

完美的。

And then just in terms of the transaction gets into the Michigan market, any desire to build that out any further through M&A?

然後就交易進入密西根市場而言，是否希望透過併購進一步擴大這一市場？

Or is that maybe too soon to consider that?

或者現在考慮這個可能還太早？

I think we're always open to the right opportunity and the right partner.

我認為我們始終對合適的機會和合適的合作夥伴持開放態度。

We're obviously being brand new to Michigan banking, we would have to explore that market more.

顯然，我們對密西根銀行業來說是全新的，我們必須更多地探索這個市場。

But I think if you look at going back just real briefly on our second quarter earnings, we had great growth -- loan growth in four different states: Tennessee, Ohio, Kentucky, and Maryland.

但我認為，如果你回顧我們第二季的收益，你會發現我們有很大的成長——四個不同州的貸款成長：田納西州、俄亥俄州、肯塔基州和馬裡蘭州。

And if you think about those four markets that we had great loan growth in, all of them have vastly different competitors.

如果你考慮我們貸款成長強勁的四個市場，你會發現它們都有截然不同的競爭對手。

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

因此，當我退後一步，看看我們在我們的文化、我們的特許經營中所做的事情時，我感覺非常好，我們可以在四個不同的市場與截然不同的競爭對手競爭，並繼續贏得業務並增加我們的貸款。

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

所以對我來說，我認為這應該說我相信我們可以在密西根州取得非常成功。

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

我認為這只是了解參與者，了解市場，然後了解在那裡前進是否具有戰略意義。

But that's down the road.

但這是未來的事了。

Got it.

知道了。

I have questions but answered.

我有疑問但已回答。

Thanks, guys.

謝謝，夥計們。

Thanks, Dan.

謝謝，丹。

Thanks, Dan.

謝謝，丹。

David Bishop, Hovde Group

大衛畢曉普，霍夫德集團

Yes.

是的。

Just a quick follow-up.

只是快速跟進。

I think you mentioned there could be some inflationary pressure from some projects on the operating expense side in the third quarter.

我想你提到第三季營運費用方面一些項目可能會帶來一些通膨壓力。

Any way to frame sort of the dollar matter percentage increase you're expecting in the near-term?

有什麼方法可以確定您近期預期的美元百分比成長嗎？

David, this is Dan.

大衛，這是丹。

I'll take that one.

我會接受那個。

We're not really expecting inflationary pressure in the third quarter.

我們並不真正預期第三季會出現通膨壓力。

But I would say, as we think about our expense run rate.

但我想說的是，當我們考慮我們的費用運行率時。

The only -- the increase that we would expect would be just in our typical annual midyear merit increases, which occur for the salary folks on -- at the beginning of June, and then the hourly in the beginning of August.

我們預期的唯一成長將只是我們典型的年度年中績效成長，這種成長發生在六月初的工資人員身上，然後是八月初的每小時薪資成長。

So no, not anticipating really any pressure there.

所以不，預計不會有任何壓力。

I would also add that we -- in my prepared commentary, I mentioned some marketing expense, but that's purposeful to take advantage of some opportunities that we think we have and deposit gathering efforts.

我還想補充一點，在我準備的評論中，我提到了一些行銷費用，但這是有目的的，以利用我們認為擁有的一些機會並投入收集工作。

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

因此，實際上，我們對我們的費用運行率非常樂觀，因為我們確實有一些項目在本季度的費用中運行，但這些項目是沒有預期的，也不會重複。

Got it.

知道了。

And then, Jeff, I know you sort of highlighted the loan pipeline at the preamble.

然後，傑夫，我知道你在序言中強調了貸款管道。

Any insight into -- or line of sight into the commercial deposit pipeline as you sort of exit the quarter?

當您退出本季時，對商業存款管道有什麼見解或看法嗎？

Yeah.

是的。

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

我們將繼續保持相當強勁的商業存款和消費者存款管道。

For us, we feel like third quarter should be a really nice deposit growth quarter.

對我們來說，我們認為第三季應該是一個非常好的存款成長季度。

I would say last quarter, you had a lot of tax payments and things that may have slowed us down slightly in the second quarter.

我想說的是，上個季度，您繳納了很多稅款，而這些事情可能會導致我們第二季度的成長速度略有放緩。

But third quarter, I would say the deposit pipeline is still very strong as is the loan pipeline.

但第三季度，我想說存款管道和貸款管道仍然非常強勁。

Perfect.

完美的。

Thank you.

謝謝。

Manuel Navas, DA Davidson.

曼努埃爾·納瓦斯，DA 戴維森。

Hey.

嘿。

Good morning.

早安.

Can you talk about potential for loan growth post this transaction?

您能談談這筆交易後貸款成長的潛力嗎？

You talked about the balance sheet restructuring.

您談到了資產負債表重組。

You're paying down borrowings.

你正在償還借款。

You can also have more liquidity.

您還可以擁有更多的流動性。

I just want to have that side of the benefits discussed a little bit more?

我只是想多討論一下這方面的好處？

Sure.

當然。

I think if you look at second quarter loan growth, I think on an annualized basis is about 15% growth.

我認為，如果你看第二季的貸款成長，我認為按年化計算，成長約為 15%。

I don't expect that for the third and fourth quarter.

我預計第三季和第四季不會出現這種情況。

But I do believe you're at mid to upper single digits in loan growth.

但我確實相信貸款成長處於中上個位數。

And then I think it -- once this transaction goes through, I think we will be incredibly well positioned to continue those levels of growth as we move into these new markets and roll out our -- some additional products and things once we get the merger done.

然後我認為，一旦這項交易完成，我認為當我們進入這些新市場並推出我們的一些額外產品和東西時，我們將處於非常有利的位置，可以繼續保持這些增長水平。

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

因此，我將繼續以中上個位數的貸款成長為模型，甚至可能會更好。

Does the CRE concentration change your pipeline mix or desire for certain types of loans?

商業房地產的集中度是否會改變您的通路組合或對某些類型貸款的渴望？

Is that already contemplated in your kind of expectations going forward?

您對未來的期望是否已考慮到這一點？

Yeah, it's already contemplated in the expectations.

是的，這已經在預期中考慮到了。

It obviously does make us more particular and we've kind of raised some minimum interest rates on some of our CRE projects to make us more selective at this time.

顯然，這確實讓我們更加挑剔，我們提高了一些商業房地產項目的最低利率，讓我們此時更具選擇性。

But I think the other thing that because of the low marks, this accretion builds back pretty quickly.

但我認為另一件事是，由於分數較低，這種成長很快就會恢復。

And depending on, if interest rates fall between now and close, we could see several tens, if not $100 million of marks come back, which then obviously would then lower the CRE concentration ratio by the time of close.

如果利率從現在到收盤之間下降，我們可能會看到幾十甚至一億美元的回報，這顯然會在收盤時降低 CRE 的集中度。

Okay.

好的。

I appreciate that.

我很欣賞這一點。

Shifting over to your comments about investing in Premier's branch network.

轉向您關於投資 Premier 分公司網路的評論。

Could you just expand on that a little bit?

能稍微擴充一下嗎？

Yes.

是的。

Manuel, I can take that.

曼努埃爾，我可以接受。

So what we've got is about $13 million in capitalized expenses that are planned really to provide some branch upgrades.

因此，我們得到了大約 1300 萬美元的資本化支出，這些支出實際上計劃用於提供一些分支機構升級。

We're also upgrading ATMs, and that would also include kind of the rebranding kind of signage, if you will, on the 73 branches.

我們還在升級 ATM 機，如果您願意的話，這還包括 73 家分行的某種品牌重塑標誌。

Thank you.

謝謝。

I appreciate that.

我很欣賞這一點。

That concludes our question-and-answer session.

我們的問答環節到此結束。

I would like to turn the conference back over to Jeff Jackson for any closing remarks.

我想將會議轉回傑夫傑克森發表閉幕詞。

Thank you for joining us today.

感謝您今天加入我們。

During this past quarter, we achieved solid loan, deposit, and fee income growth, manage costs and maintain strong capital levels and credit quality, and embarked on the transformation of WesBanco into a stronger regional financial services institution.

在過去的一個季度中，我們實現了貸款、存款和手續費收入的穩健增長，管理了成本，保持了強勁的資本水平和信貸質量，並開始將 WesBanco 轉型為更強大的區域金融服務機構。

WesBanco is an ideal partner for Premier, as we have a history of solid execution on our operational and growth strategies, and a strong track record of operational performance and merger success.

WesBanco 是 Premier 的理想合作夥伴，因為我們在營運和成長策略方面有著紮實執行的歷史，並且在營運績效和合併成功方面擁有良好的記錄。

We look forward to speaking with you in the near future at one of our upcoming investor events.

我們期待在不久的將來在我們即將舉行的投資者活動之一中與您交談。

Have a good day.

祝你有美好的一天。

Thank you.

謝謝。

The conference has now concluded.

會議現已結束。

Thank you for attending today's presentation.

感謝您參加今天的演講。

You may now disconnect.

您現在可以斷開連線。