Second Quarter 2022 Earnings Call Presentation 26 July 2022 Forward-Looking Statements and Non-GAAP Financial Measures Forward-looking statements in this report relating to WesBanco's plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The information contained in this report should be read in conjunction with WesBanco's Form 10-K for the year ended December 31, 2021 and do ...

(Mark One) UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-39442 WESBANCO, INC. (Exact name of Registrant as specified in its charter) WEST VIRGINIA 55-0571723 1 Bank Plaza, Wheeling, WV 26003 ...

By all accounts, better. Investor Presentation (Q1 2022) (WSBC financials as of the three months ended 31 December 2021) John Iannone Senior Vice President, Investor & Public Relations 304-905-7021 Forward-Looking Statements and Non-GAAP Financial Measures Forward-looking statements in this report relating to WesBanco's plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Th ...

WesBanco, Inc. (NASDAQ:WSBC) Q1 2022 Earnings Conference Call April 27, 2022 10:00 AM ET Company Participants Todd F. Clossin – President and Chief Executive Officer Dan Weiss – Executive Vice President and Chief Financial Officer John Iannone – Senior Vice President of Investor Relations and Public Relations Conference Call Participants Casey Whitman – Piper Sandler Karl Shepard – RBC Capital Markets Stuart Lotz – KBW Russell Gunther – D.A. Davidson Steve Moss – B Riley, FBR Broderick Preston – Stephens In ...

Financial Performance - As of December 31, 2021, Wesbanco's total assets were approximately $16.9 billion[12] - For the year ended December 31, 2021, Wesbanco declared cash dividends of approximately $95.8 million to its preferred and common shareholders[39] - Wesbanco's leverage ratio was 10.02% and the Bank's leverage ratio was 9.68% as of December 31, 2021[52] - Wesbanco Bank was classified as "well capitalized" as of December 31, 2021, allowing it to pay dividends without restrictions[40] - As of December 31, 2021, Wesbanco's Common Equity Tier 1 (CET1), Tier 1, and total capital to risk-adjusted assets ratios were 12.77%, 14.05%, and 15.91%, respectively, all exceeding minimum requirements[52] - Wesbanco Bank's CET1, Tier 1, and total capital to risk-adjusted assets ratios were 13.60%, 13.60%, and 14.31%, respectively, as of December 31, 2021[52] - The bank's total assets were above $15 billion as of December 31, 2021, thus it is no longer able to count trust preferred securities as Tier 1 capital[53] - The Federal Reserve requires banks to maintain a CET1 ratio of at least 4.5%, a Tier 1 capital ratio of at least 6%, and a total capital ratio of at least 8%[50] Regulatory Compliance - Wesbanco is subject to enhanced prudential supervision due to exceeding the $10 billion asset threshold, impacting its regulatory compliance[32] - The Dodd-Frank Act requires Wesbanco to act as a source of financial strength to its subsidiary bank, which may necessitate capital infusions during troubled times[38] - The Dodd-Frank Act has led to reforms affecting Wesbanco's businesses, including enhanced prudential requirements for risk management and capital[62] - Wesbanco's capital levels are monitored under the FDIC regulations, which impose restrictions on undercapitalized institutions[57] - The Dodd-Frank Act has led to numerous reforms in the U.S. financial system, impacting Wesbanco's operations through regulations on capital, liquidity, and risk management[62] - The Dodd-Frank Act requires annual company-run stress tests for bank holding companies with total consolidated assets greater than $100 billion, but Wesbanco is not subject to these rules as it has less than $100 billion in average total consolidated assets[68][69] - Wesbanco is not subject to the Federal Reserve's stress-test rules as it has less than $100 billion in average total consolidated assets[69] Community Engagement - Wesbanco made over $0.9 million in philanthropic donations in support of communities across its footprint in the past year[30] - Wesbanco originated over $1.5 billion in community development loans in the past five years, supporting financial needs in low-income communities[83] - Wesbanco Bank has received an "Outstanding" CRA rating from the FDIC for seven consecutive examinations, reflecting its commitment to community development[82] - Wesbanco's community development initiatives include partnerships with governmental and non-profit agencies to assist low- and moderate-income customers[83] - The bank has deployed hundreds of thousands of dollars in philanthropic donations to support local organizations[83] - Wesbanco Bank partners with governmental and non-profit agencies to provide special programs for low- and moderate-income customers[83] Workforce and Culture - Wesbanco employed 2,389 full-time equivalent employees, with an average tenure of over 9 years[24] - The turnover rate for Wesbanco's total employees in 2021 was 23.03%, while the turnover rate for officers was just 5.47%[25] - The company has a diverse workforce, with 9% of employees being minorities and 54% of officers being women[25] - Wesbanco's corporate culture emphasizes customer and employee-centric values, aiming to build long-term relationships through effective service[26] Market Position and Competition - The company has faced significant competitive pressure due to consolidation within the financial services industry and the expansion of larger financial institutions[31] - Wesbanco's trust and investment services segment faces intense competition from various financial institutions, including banks and investment firms, which may impact its market share and profit potential[31] - Wesbanco's expansion into larger metropolitan markets has led to increased competition from established banks with larger customer bases[31] Regulatory Changes and Impact - The Durbin Amendment caps debit card interchange fees at $0.21 plus an additional 0.05% of the transaction value, affecting Wesbanco's interchange income since July 2019[67] - The Volcker Rule limits Wesbanco's ability to engage in proprietary trading and invest in hedge funds, with compliance requirements adjusted as of January 1, 2020[64] - Wesbanco has gross consolidated trading assets and liabilities below $1 billion, qualifying for the limited trading compliance presumption under the Volcker Rule[64] - The CFPB's regulations, resulting from the Dodd-Frank Act, have increased compliance requirements for Wesbanco, particularly in mortgage lending and consumer protection laws[79] - The TRID rules, effective October 3, 2015, have created significant compliance challenges for Wesbanco in real estate lending transactions[80] Financial Services and Products - Wesbanco's subsidiaries include Wesbanco Insurance Services and Wesbanco Securities, which provide a range of financial services[13][14] - Wesbanco Securities provides customer protection for securities accounts up to $500,000, with a cash balance limit of $250,000[85] - Wesbanco has developed innovative loan and deposit products to meet the financial needs of its customers[83] - Wesbanco adopted the CECL methodology effective January 1, 2020, and opted for a five-year transition period to manage its regulatory capital[78] Government Programs - The CARES Act established the Paycheck Protection Program (PPP) to provide guaranteed loans to eligible businesses during COVID-19, which Wesbanco participates in[75] - The Economic Aid Act extended the PPP loan program, providing additional funds and flexibility for borrowers affected by the pandemic[75] - The Economic Aid Act extended the relief for loan modifications related to COVID-19 until December 31, 2021, allowing banks to assist affected borrowers[76]

Fourth Quarter 2021 Earnings Call Presentation 25 January 2022 Forward-Looking Statements and Non-GAAP Financial Measures Forward-looking statements in this report relating to WesBanco's plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The information contained in this report should be read in conjunction with WesBanco's Form 10-K for the year ended December 31, 2020 and ...

Financial Data and Key Metrics Changes - For Q4 2021, the company reported net income available to common shareholders of $51.8 million and diluted earnings per share of $0.82, excluding after-tax merger and restructuring charges [5][20] - For the full year 2021, net income available to common shareholders was $237.4 million, with diluted earnings per share of $3.62, reflecting strong returns on average assets and average tangible equity of 1.4% and 15.22% respectively [5][20] - Total assets as of December 31, 2021, were $16.9 billion, with total portfolio loans of $9.7 billion and total securities of $4.0 billion, marking a 48.1% year-over-year increase in total securities [21][23] Business Line Data and Key Metrics Changes - The residential lending group achieved record mortgage originations of $1.4 billion in 2021, with a 4% non-annualized sequential growth in residential loans during Q4 [12][27] - The company generated $1.8 billion in new commercial loan production in 2021, with approximately 30% occurring in Q4 [13] - Total portfolio loans decreased by 4.9% year-over-year and 0.7% sequentially, primarily due to elevated commercial real estate payoffs [22] Market Data and Key Metrics Changes - Total deposits increased to $13.6 billion, driven by growth in total demand deposits, which represent approximately 59% of total deposits [23] - Commercial real estate payoffs totaled $160 million in Q4, remaining above the historical average but showing a decline from the previous quarter [22] Company Strategy and Development Direction - The company is focused on organic growth and plans to make strategic hires to enhance its ability to leverage growth opportunities [3][17] - The management is committed to expense management while continuing to invest in technology and employee development [15][32] - The company is exploring additional branch optimization strategies and anticipates consolidating around 10 more branches in the near future [42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future direction of interest rates and loan growth opportunities, despite challenges from a low interest rate environment [19][30] - The company anticipates continued strong performance in residential lending, although at lower levels than the record volumes of 2021 [30][31] - Management emphasized the importance of maintaining strong credit underwriting standards and prudent long-term decisions for shareholders [10][14] Other Important Information - The company reported strong capital ratios, with Tier 1 risk-based capital of 14.5% and total risk-based capital of 15.91% as of December 31, 2021 [28] - The company repurchased approximately 1.6 million shares of common stock for a total cost of $54.7 million during Q4 [28] Q&A Session Summary Question: Margin outlook and impact of rate hikes - Management discussed the asset sensitivity of the bank and the expected benefits from a rising rate environment, noting that a significant portion of their commercial portfolio is variable [39][40] Question: Expense initiatives and branch rationalization - Management confirmed ongoing branch optimization strategies and plans to consolidate an additional 10 branches [42] Question: Loan growth outlook - Management indicated a long-term loan growth target of mid-upper single digits, with a current pipeline that is 20% larger than at year-end [44][58] Question: Differences in paydowns across markets - Management noted that most real estate paydowns occur in urban areas, with no significant differences across various markets [48] Question: Reserve levels and M&A activity - Management stated that while they are focused on organic growth, they are prepared for potential M&A opportunities if the right situation arises [85][86]

[PART I - FINANCIAL INFORMATION](index=2&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This section presents the unaudited interim financial information and management's analysis for Wesbanco, Inc [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Wesbanco's unaudited interim consolidated financial statements for Q3 and nine months ended September 30, 2021, covering balance sheets, income, equity, and cash flows [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) As of September 30, 2021, total assets increased to $16.89 billion from $16.43 billion at year-end 2020, driven by a significant rise in securities funded by strong deposit growth Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Total Assets** | **$16,892,111** | **$16,425,610** | | Total Securities | $3,953,917 | $2,722,069 | | Net Portfolio Loans | $9,776,560 | $10,603,406 | | Goodwill and other intangible assets, net | $1,154,468 | $1,163,091 | | **Total Liabilities** | **$14,168,128** | **$13,668,873** | | Total Deposits | $13,423,314 | $12,429,373 | | Total Borrowings | $529,197 | $983,244 | | **Total Shareholders' Equity** | **$2,723,983** | **$2,756,737** | [Consolidated Statements of Comprehensive Income](index=4&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Net income for Q3 2021 slightly increased to $41.9 million, driven by a negative provision for credit losses, while nine-month net income surged to $180.5 million due to a significant negative provision Q3 and Nine Months Performance (in thousands, except per share data) | Metric | Q3 2021 | Q3 2020 | Nine Months 2021 | Nine Months 2020 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $115,275 | $120,593 | $347,607 | $359,768 | | Provision for credit losses | ($1,730) | $16,288 | ($50,714) | $107,949 | | Non-Interest Income | $32,755 | $34,612 | $102,076 | $95,481 | | Non-Interest Expense | $94,701 | $89,943 | $264,840 | $266,779 | | Net Income | $44,408 | $41,305 | $188,112 | $69,189 | | Diluted EPS | $0.64 | $0.61 | $2.71 | $1.03 | [Consolidated Statements of Changes in Shareholders' Equity](index=5&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) For the nine months ended September 30, 2021, total shareholders' equity decreased by $32.8 million to $2.72 billion, primarily due to treasury stock acquisitions and other comprehensive loss - Key drivers for the change in shareholders' equity in the first nine months of 2021 include net income of **$188.1M**, common dividends of **$65.1M**, preferred dividends of **$7.6M**, treasury share acquisitions of **$128.0M**, and an other comprehensive loss of **$26.9M**[11](index=11&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2021, net cash provided by operating activities was $276.1 million, while investing activities used $404.0 million, and financing activities provided $343.5 million, resulting in a net cash increase of $215.7 million Cash Flow Summary for Nine Months Ended Sep 30 (in thousands) | Activity | 2021 | 2020 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $276,138 | $20,628 | | Net Cash from Investing Activities | ($403,997) | ($228,162) | | Net Cash from Financing Activities | $343,528 | $733,004 | | **Net Increase in Cash** | **$215,669** | **$525,470** | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed disclosures on significant accounting policies and specific financial statement items, including securities, loans, credit losses, derivatives, fair value, revenue, and segment performance [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Wesbanco's Q3 and nine-month 2021 financial performance, highlighting net income drivers, balance sheet changes, capital, and liquidity [Results of Operations](index=38&type=section&id=Results%20of%20Operations) For Q3 2021, net income available to common shareholders was $41.9 million, primarily due to a negative provision for credit losses offsetting a decrease in net interest income, while non-interest income and expense also saw changes GAAP to Non-GAAP Reconciliation (in thousands, except per share) | Metric | Q3 2021 | Q3 2020 | Nine Months 2021 | Nine Months 2020 | | :--- | :--- | :--- | :--- | :--- | | **Net Income (Non-GAAP)** | **$45,406** | **$44,155** | **$185,685** | **$76,489** | | Diluted EPS (Non-GAAP) | $0.70 | $0.66 | $2.79 | $1.14 | | Less: After-tax restructuring expenses | ($3,529) | ($2,850) | ($5,167) | ($7,300) | | **Net Income (GAAP)** | **$41,877** | **$41,305** | **$180,518** | **$69,189** | | Diluted EPS (GAAP) | $0.64 | $0.61 | $2.71 | $1.03 | - The negative provision for credit losses of **$1.7 million** in Q3 2021, compared to a **$16.3 million** provision in Q3 2020, was a key driver of earnings, resulting from improved macroeconomic forecasts[125](index=125&type=chunk) - Non-interest income decreased by **$1.9 million** (**5.4%**) in Q3 2021, primarily due to a **$3.9 million** (**46.2%**) drop in mortgage banking income from record 2020 levels[126](index=126&type=chunk) [Financial Condition](index=46&type=section&id=Financial%20Condition) As of September 30, 2021, total assets grew 2.8% to $16.9 billion, driven by a 45.3% increase in securities funded by an 8.0% rise in deposits, while total portfolio loans decreased 8.1% mainly due to PPP loan forgiveness - Total assets increased by **2.8%** since year-end 2020, driven by a **$1.2 billion** (**45.3%**) increase in the securities portfolio, funded by a **$993.9 million** (**8.0%**) increase in deposits[160](index=160&type=chunk) - Total portfolio loans decreased by **$876.1 million** (**8.1%**) from year-end, primarily due to **$939.7 million** in PPP loan forgiveness during the first nine months of 2021[160](index=160&type=chunk)[179](index=179&type=chunk) - Total borrowings decreased by **$454.0 million** (**46.2%**) in the first nine months of 2021, as excess liquidity was used to pay down maturing FHLB advances and other debt[160](index=160&type=chunk) [Capital Resources](index=55&type=section&id=Capital%20Resources) Shareholders' equity decreased by $32.8 million (1.2%) from year-end 2020, primarily due to common stock repurchases and other comprehensive loss, while regulatory capital ratios remained well above 'well-capitalized' thresholds - Wesbanco repurchased **3.64 million** shares for **$128.0 million** during the first nine months of 2021. A new **3.2 million** share repurchase plan was approved in August 2021[211](index=211&type=chunk) - The quarterly dividend was increased by **$0.01** to **$0.33** per share in February 2021, a **3.1%** increase[210](index=210&type=chunk) Regulatory Capital Ratios (Wesbanco, Inc.) | Ratio | Sep 30, 2021 | Dec 31, 2020 | Well-Capitalized Minimum | | :--- | :--- | :--- | :--- | | Tier 1 leverage | 10.10% | 10.51% | 5.00% | | Common equity Tier 1 | 12.91% | 13.40% | 6.50% | | Tier 1 capital to risk-weighted assets | 14.18% | 14.72% | 8.00% | | Total capital to risk-weighted assets | 16.38% | 17.58% | 10.00% | [LIBOR Transition](index=58&type=section&id=LIBOR%20TRANSITION) Wesbanco is managing its transition from LIBOR, which will cease for new contracts after December 31, 2021, by adopting the One Month Term Secured Overnight Financing Rate (1M Term SOFR) as its initial replacement - As of September 30, 2021, Wesbanco had **$1.9 billion** in loans tied to LIBOR or the ICE LIBOR Swap Index, with **$1.5 billion** maturing after the June 30, 2023 cessation date[236](index=236&type=chunk) - Wesbanco has selected the One Month Term Secured Overnight Financing Rate (1M Term SOFR) as its initial alternative replacement rate for LIBOR and will not offer LIBOR for new contracts after December 31, 2021[236](index=236&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=54&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details Wesbanco's management of market risk, primarily interest rate risk, using earnings sensitivity simulation and economic value-at-risk models, showing asset-sensitivity within policy limits Net Interest Income Sensitivity Analysis | Immediate Change in Interest Rates (bps) | % Change in NII from Base (Sep 30, 2021) | % Change in NII from Base (Dec 31, 2020) | | :--- | :--- | :--- | | +300 | 15.9% | 15.3% | | +200 | 10.7% | 10.3% | | +100 | 5.7% | 5.5% | - Management employs several strategies to manage the net interest margin, including increasing variable-rate loans, selling longer-term mortgages, growing demand deposits, and using back-to-back loan swaps[250](index=250&type=chunk) [Item 4. Controls and Procedures](index=56&type=section&id=Item%204.%20Controls%20and%20Procedures) The CEO and CFO concluded that Wesbanco's disclosure controls and procedures were effective, despite a significant change in internal controls over financial reporting due to a core banking system conversion - Management concluded that disclosure controls and procedures are effective as of September 30, 2021[251](index=251&type=chunk) - During Q3 2021, the company completed a core banking system conversion, which materially affected internal controls over financial reporting related to loans, deposits, digital banking, and the general ledger[253](index=253&type=chunk) [PART II – OTHER INFORMATION](index=57&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) This section provides information on legal proceedings, equity security sales, and required exhibits for Wesbanco, Inc [Item 1. Legal Proceedings](index=57&type=section&id=Item%201.%20Legal%20Proceedings) Wesbanco is involved in various legal proceedings that arise in the ordinary course of business, with management not expecting any material loss from pending or threatened claims - The company is involved in various lawsuits and claims in the ordinary course of business but does not believe a material loss is reasonably possible[257](index=257&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=57&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Wesbanco has an active stock repurchase plan, with a new authorization for 3.2 million shares approved in August 2021, and repurchased over 2.1 million shares in Q3 2021 Share Repurchase Activity (Q3 2021) | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Plan | | :--- | :--- | :--- | :--- | | July 2021 | 591,830 | $34.47 | 566,474 | | August 2021 | 811,192 | $33.75 | 808,196 | | September 2021 | 765,009 | $32.19 | 763,745 | | **Total** | **2,168,031** | **$33.40** | **2,138,415** | - A new stock repurchase plan for **3.2 million** shares was approved on August 26, 2021. As of September 30, 2021, **2,960,801** shares remained authorized for repurchase[258](index=258&type=chunk)[260](index=260&type=chunk) [Item 6. Exhibits](index=58&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including a consulting agreement and certifications by the CEO and CFO, along with Inline XBRL documents - Exhibits filed include a consulting agreement with Robert H. Young, CEO and CFO certifications (**31.1, 31.2, 32.1**), and Inline XBRL data files[264](index=264&type=chunk)

Financial Data and Key Metrics Changes - For Q3 2021, the company reported net income available to common shareholders of $45.4 million and diluted earnings per share of $0.70, excluding merger and restructuring charges [8] - GAAP net income for the three months ended September 30, 2021, was $41.9 million, with earnings per diluted share of $0.64, compared to $0.66 last year [20] - Total assets increased by 2.1% year-over-year to $16.9 billion, primarily due to growth in the securities portfolio [20][22] - Total portfolio loans decreased by 9.8% year-over-year to $9.9 billion, largely due to the forgiveness of $940 million in SBA Payroll Protection Program loans [21] - Total deposits increased by 10% year-over-year to $13.4 billion, driven by stimulus-related funds and higher personal savings [22] Business Line Data and Key Metrics Changes - The commercial loan production for the year reached nearly $1.3 billion, with 35% generated in Q3 [9] - The residential mortgage pipeline remains strong, contributing to solid originations expected in the upcoming quarters [10] - Noninterest income for Q3 was $32.8 million, a decrease of 5.4% year-over-year, primarily due to lower mortgage banking income [25] - Wealth management businesses saw organic growth, with trust up 13.4% and securities brokerage up 13.9% for the quarter [26] Market Data and Key Metrics Changes - Commercial line of credit utilization remains about 12 percentage points below historical averages due to excess liquidity among companies [10] - The company experienced significant commercial real estate project payoffs, totaling over $630 million for the first nine months of the year, surpassing previous years [11] Company Strategy and Development Direction - The company is focused on expense management while making strategic hires to enhance growth opportunities [7] - Plans to hire an additional 20 commercial lenders over the next year to strengthen market presence [13] - The company aims for mid-to-upper single-digit loan growth in the long term [13] Management's Comments on Operating Environment and Future Outlook - Management noted that the low interest rate environment continues to negatively impact margins, but strong residential mortgage origination volumes are helping mitigate this [19] - The company anticipates continued improvements in macroeconomic factors, which should lead to a reduction in the allowance for credit losses over time [33] - Management expressed confidence in the company's ability to leverage its competitive advantages for future growth [18] Other Important Information - The company completed the conversion of its core banking software system to FIS's IBS platform, enhancing operational efficiencies and capabilities for growth [17] - The company repurchased approximately 2.1 million shares of common stock for a total cost of $71.3 million during the third quarter [29] Q&A Session Summary Question: Can you provide additional color on the C&I paydowns? - Management indicated that the C&I line usage was up slightly, with commercial real estate loans categorized under C&I impacting the numbers [38] Question: How do you see core loan yields trending? - Management expects the core loan yield delta to decrease, with new loans targeting a range of 3% to 3.25% [41] Question: What is the outlook for core expenses going forward? - Management suggested that the current expense level of around $88 million may be a reasonable run rate, with potential for slight reductions [46][50] Question: What is the timeline for getting reserves back to day one levels? - Management anticipates that as credit continues to improve, reserves will trend downward, potentially returning to day one levels by the end of 2022 or 2023 [78]

Financial Performance - Net income available to common shareholders reached $68,057 thousand for the three months ended June 30, 2021, compared to $4,488 thousand in the prior year, marking a substantial increase[9]. - For the six months ended June 30, 2021, net income available to common shareholders was $138,641,000, up from $27,884,000 in the same period of 2020[20]. - For the three months ended June 30, 2021, Wesbanco reported net income available to common shareholders of $68,057,000, compared to $4,488,000 for the same period in 2020, representing a significant increase[20]. - Net income was $70,588 thousand, compared to $4,488 thousand for the same period in 2020, representing a significant increase[10]. - The company declared dividends of $0.33 per common share for the three months ended June 30, 2021, compared to $0.32 in the same period of 2020[9]. Asset Growth - Total assets increased to $16,966,867 thousand as of June 30, 2021, compared to $16,425,610 thousand at December 31, 2020, reflecting a growth of 3.3%[8]. - Total deposits rose to $13,318,255 thousand as of June 30, 2021, up from $12,429,373 thousand at the end of 2020, indicating a growth of 7.1%[8]. - Total securities increased to $3,879,703 thousand as of June 30, 2021, from $2,722,069 thousand at December 31, 2020, reflecting a growth of 42.5%[8]. - Total assets increased to $17,042,147 thousand as of June 30, 2021, compared to $16,715,211 thousand in 2020, reflecting a growth of 1.95%[138]. Income and Expenses - Net interest income after provision for credit losses was $136,880 thousand for the three months ended June 30, 2021, significantly up from $57,172 thousand in the same period of 2020[9]. - Non-interest income for the three months ended June 30, 2021, was $36.1 million, compared to $32.9 million in the same period of 2020[119]. - Non-interest expense decreased to $83,812 thousand for the three months ended June 30, 2021, from $85,502 thousand in the same period of 2020[9]. - Non-interest expense decreased by $2.4 million or 2.9% to $82.6 million in Q2 2021, primarily due to lower FDIC insurance and franchise tax expenses[130]. Credit Quality - The provision for credit losses was $(21,025) thousand for the three months ended June 30, 2021, compared to $61,841 thousand in the same period of 2020, indicating improved credit quality[9]. - The allowance for credit losses for loans and loan commitments at June 30, 2021, was $146,496, compared to $195,341 at December 31, 2020, reflecting a reduction of 25%[35]. - The total allowance for credit losses on loans was $140.7 million, representing 1.36% of total portfolio loans as of June 30, 2021, down from 1.72% as of December 31, 2020[196]. - Non-performing loans represented 0.41% of total loans as of June 30, 2021, an increase from 0.37% at the end of Q2 2020[141]. Loan Portfolio - Total portfolio loans as of June 30, 2021, amounted to $10,357,192, a decrease of 4% from $10,789,233 in the previous year[33]. - The total commercial real estate portfolio remained stable at $5,705,246, slightly down from $5,705,392 year-over-year[33]. - The commercial and industrial loans, including PPP loans, decreased to $2,119,186 from $2,407,438, a decline of approximately 12%[33]. - The outstanding balance of commercial real estate loans was $5.7 billion, representing 54.9% of total loans as of June 30, 2021[177]. Securities and Investments - The total fair value of available-for-sale debt securities as of June 30, 2021, was $2,964,264,000, compared to $1,978,136,000 as of December 31, 2020[23]. - The total held-to-maturity debt securities amounted to $934,487,000 as of June 30, 2021, compared to $768,183,000 as of December 31, 2020[23]. - Net securities gains for the six months ended June 30, 2021, were $756,000 compared to $2.79 million for the same period in 2020[28]. - The fair value of available-for-sale debt securities increased to $2,964,264, compared to $1,978,136 in the previous period[89]. Deposits and Funding - Average deposits, excluding certificates of deposit, increased by 17.2% over the same period, largely due to stimulus deposits and increased personal savings[127]. - The Insured Cash Sweep (ICS®) program contributed to an increase in money market deposits, totaling $617.6 million as of June 30, 2021[206]. - Total deposits increased by $888.9 million or 7.2% during the first six months of 2021, reaching $13.3 billion[204]. - Interest bearing demand deposits increased by 13.2%, while savings deposits rose by 10.1%[206]. Economic Outlook - The one-year forecast for national unemployment was projected to peak at 5.2% in Q3 2021, decreasing to an average of 4.2% thereafter[33]. - The company expects core net interest margin to decline several basis points for the remainder of the year due to lower anticipated earning asset yields[136]. Operational Efficiency - Net cash provided by operating activities for the six months ended June 30, 2021, was $229,342 thousand, compared to $89,394 thousand for the same period in 2020, indicating improved operational efficiency[13]. - The company reported a significant increase in net swap fee and valuation income, which rose by $1.8 million or 61.9% in the first six months of 2021 compared to the same period in 2020[150]. Risk Management - The risk grading system for commercial loans emphasizes debt service coverage, leverage, and loan-to-value ratios, which are critical in assessing loan quality[38]. - The company has a reserve of $0.2 million on accrued interest related to loan modifications under the CARES Act[33]. - Approximately 3,550 loans totaling $2.2 billion were modified under the CARES Act, with $151.6 million currently in deferral[187].