Core Points - WesBanco, Inc. will host a conference call on October 23, 2025, to review its financial results for the third quarter of 2025, with results expected to be released after market close on October 22, 2025 [1] - The conference call can be accessed via a live webcast on the company's website or by dialing specific numbers for participants [2] - A replay of the conference call will be available starting at 5:00 p.m. ET on October 23, 2025, and will end at 12 a.m. ET on November 6, 2025 [3] Company Overview - WesBanco, Inc. has over 150 years of experience as a community-focused financial services partner, offering a range of banking solutions, trust, brokerage, wealth management, and insurance services [4] - The company is headquartered in Wheeling, West Virginia, and has total assets of $27.6 billion, with $7.2 billion in assets under management in its Trust and Investment Services [4]

Core Insights - WesBanco, Inc. has appointed Amby Bauer as the Western Pennsylvania Market President and Senior Commercial Banker, effective immediately, to lead growth strategies in the region [1][2][3] Group 1: Leadership and Experience - Amby Bauer brings over 25 years of industry experience, having joined WesBanco in 2022 as a Commercial Banker [2] - Prior to WesBanco, Bauer served as Vice President of Corporate Banking at Dollar Bank, managing a corporate banking portfolio [2] - Bauer holds a Bachelor of Arts degree in economics from The Pennsylvania State University and a Wharton Leadership Certificate from the Stonier ABA Graduate School of Banking [2] Group 2: Strategic Focus - Bauer's role will involve fostering relationships and initiatives that support Western Pennsylvania communities, reflecting WesBanco's commitment to local engagement [1][3] - The focus will be on providing personalized, high-quality financial services to meet the evolving needs of clients [3] Group 3: Company Overview - WesBanco, Inc. has over 150 years of experience as a community-focused financial services partner, with total assets of $27.6 billion as of June 30, 2025 [4] - The company offers a comprehensive range of services, including retail and commercial banking, trust, brokerage, wealth management, and insurance [4] - WesBanco operates across an eight-state footprint, emphasizing local focus while leveraging large bank capabilities [4]

Core Points - WesBanco, Inc. has declared a quarterly cash dividend of $0.421875 per depositary share on its 6.75% Non-Cumulative Perpetual Preferred Stock, Series A, for the period from August 15, 2025, to November 15, 2025 [1] - The total cash dividend amounts to $16.875 per share of the Series A Preferred Stock outstanding, payable on November 15, 2025, to shareholders of record on November 1, 2025 [1] Company Overview - WesBanco, Inc. is a diversified, multi-state bank holding company with over 150 years of experience, focusing on community financial services [2] - The company has total assets of $27.6 billion, with $7.2 billion in Trust and Investment Services assets under management and $2.6 billion in securities account values as of June 30, 2025 [2]

Core Insights - WesBanco Inc shares have crossed above their 200-day moving average of $32.11, reaching a high of $32.37 per share, indicating positive trading momentum [2] - The current trading price of WesBanco Inc shares is approximately $32.32, reflecting a daily increase of about 3.8% [2] - The 52-week range for WesBanco Inc shares is between a low of $26.42 and a high of $37.36 [2]

Core Viewpoint - Keefe, Bruyette & Woods, Inc. announces the upcoming index rebalancing for the KBW Regional Banking Index, effective September 22, 2025, indicating changes in its constituent components [1][2]. Group 1: Index Rebalancing Details - The rebalancing will affect the KBW Regional Banking Index (Ticker: KRX; ETF Ticker: KBWR) [2]. - Renasant Corporation (NYSE: RNST) and WesBanco, Inc. (NYSE: WSBC) are among the companies involved in the changes [2][3]. Group 2: KBW Overview - KBW is a leading independent authority in the financial services sector, including banking, insurance, and asset management, and is a wholly owned subsidiary of Stifel Financial Corp. [5]. - Established in 1962, KBW has a strong reputation in research, corporate finance, mergers and acquisitions, and trading of equity securities [5].

Core Viewpoint - Wesbanco, Inc. has announced a public offering of 9,200,000 depositary shares representing a 1/40 interest in a share of 7.375% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B, with a liquidation preference of $1,000 per share [1][2] Summary by Sections Offering Details - The depositary shares will accrue dividends at a rate of 7.375% per annum from September 17, 2025, to October 1, 2030, payable quarterly [2] - After October 1, 2030, the dividend rate will reset to the five-year treasury rate plus 3.795% [2] - Wesbanco may redeem the Series B Preferred Stock at a price of $1,000 per share on any dividend payment date after October 1, 2030 [2] Use of Proceeds - Approximately $150 million of the net proceeds will be used to redeem the outstanding 6.75% Series A Preferred Stock [3] - Approximately $50 million will be allocated to redeem the 4.0% Fixed-To-Floating Rate Subordinated Notes due September 30, 2030 [3] - Remaining proceeds will support general corporate purposes, including debt repayment, capital expenditures, and potential acquisitions [3] Company Background - Wesbanco has over 150 years of experience as a community-focused financial services provider [6] - The company has total assets of $27.6 billion, with $7.2 billion in Trust and Investment Services assets under management as of June 30, 2025 [7]

Core Insights - WesBanco, Inc. has appointed Richard Laws as Senior Executive Vice President and Chief Legal Counsel, effective August 18, 2025, marking a strategic evolution in the company's legal leadership [1][2][4] - Laws brings over 25 years of legal experience, including his previous role as Chief Legal Officer at Northwest Bank, where he managed all legal activities for a $16 billion financial institution [2][4] - The appointment reflects WesBanco's commitment to building the necessary infrastructure to support long-term success, especially following its acquisition of Premier Financial Corp. [4][5] Company Overview - WesBanco, Inc. is a diversified, multi-state bank holding company with total assets of $27.6 billion as of June 30, 2025 [5] - The company offers a comprehensive range of financial services, including retail and commercial banking, trust, brokerage, wealth management, and insurance services [5] - WesBanco has received national recognition, including being named one of Forbes' Most Trusted Companies and Newsweek's America's Best Regional Banks [4]

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited interim consolidated financial statements for Wesbanco, Inc. as of June 30, 2025, and for the three and six-month periods then ended, including balance sheets, income statements, and notes [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) Consolidated Balance Sheets (in thousands) | (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$27,571,576** | **$18,684,298** | | Net Portfolio Loans | $18,604,760 | $12,517,663 | | Total Securities | $4,389,961 | $3,412,259 | | Goodwill and other intangible assets, net | $1,745,170 | $1,124,016 | | **Total Liabilities** | **$23,752,356** | **$15,894,017** | | Total Deposits | $21,154,556 | $14,133,717 | | Total Borrowings | $2,211,428 | $1,471,381 | | **Total Shareholders' Equity** | **$3,819,220** | **$2,790,281** | Consolidated Statements of Income (in thousands, except per share) | (in thousands, except per share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Interest Income** | **$216,769** | **$116,593** | **$375,288** | **$230,560** | | Provision for credit losses | $3,218 | $10,541 | $72,101 | $14,555 | | Total non-interest income | $43,957 | $31,355 | $78,622 | $61,984 | | Total non-interest expense | $186,535 | $102,392 | $320,500 | $199,585 | | **Net Income** | **$57,415** | **$28,916** | **$48,423** | **$64,609** | | Net income available to common shareholders | $54,884 | $26,385 | $43,360 | $59,546 | | **Diluted EPS** | **$0.57** | **$0.44** | **$0.50** | **$1.00** | [Note 2. Mergers and Acquisitions](index=11&type=section&id=Note%202.%20Mergers%20and%20Acquisitions) This note details the acquisition of Premier Financial Corp. (PFC) by Wesbanco, including the purchase price, acquired assets, and merger-related expenses - On February 28, 2025, Wesbanco completed its acquisition of Premier Financial Corp. (PFC) for a total purchase price of approximately **$1.0 billion**. The acquisition added approximately **$7.9 billion** in assets, **$5.9 billion** in portfolio loans, and 73 branches[33](index=33&type=chunk) - The acquisition resulted in the recognition of **$476.2 million** in goodwill and **$158.4 million** in core deposit and other intangible assets. The purchase price allocation is preliminary and subject to adjustment for up to one year[33](index=33&type=chunk)[34](index=34&type=chunk) - Merger-related expenses of **$32.5 million** and **$53.4 million** were recorded for the three and six months ended June 30, 2025, respectively[33](index=33&type=chunk) [Note 4. Securities](index=15&type=section&id=Note%204.%20Securities) This note provides a breakdown of the company's securities portfolio, including available-for-sale, held-to-maturity, and equity securities, along with unrealized gains/losses and credit loss allowances Securities Portfolio (in thousands) | (in thousands) | June 30, 2025 (Fair Value) | Dec 31, 2024 (Fair Value) | | :--- | :--- | :--- | | **Available-for-sale debt securities** | **$3,222,819** | **$2,246,072** | | U.S. Treasury & Agencies | $402,759 | $340,355 | | Mortgage-backed securities | $2,602,233 | $1,825,223 | | **Held-to-maturity debt securities** | **$1,137,604 (Net)** | **$1,152,760 (Net)** | | Obligations of states & political subdivisions | $1,089,173 (Amortized Cost) | $1,098,957 (Amortized Cost) | | **Equity securities** | **$29,538** | **$13,427** | | **Total Securities** | **$4,389,961** | **$3,412,259** | - Net unrealized losses on available-for-sale securities, net of tax, improved to **$178.5 million** at June 30, 2025, from **$223.8 million** at December 31, 2024[62](index=62&type=chunk) - The allowance for credit losses on held-to-maturity securities was **$0.2 million** as of June 30, 2025, up from **$0.1 million** at year-end 2024[57](index=57&type=chunk)[65](index=65&type=chunk) [Note 5. Loans and the Allowance for Credit Losses](index=18&type=section&id=Note%205.%20Loans%20and%20the%20Allowance%20for%20Credit%20Losses) This note details the composition of the loan portfolio and the allowance for credit losses, including changes driven by acquisitions and credit quality trends Total Portfolio Loans (in thousands) | (in thousands) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total commercial real estate | $10,600,210 | $7,326,681 | | Commercial and industrial | $2,819,096 | $1,787,277 | | Residential real estate | $3,939,796 | $2,520,086 | | Home equity | $1,052,334 | $821,110 | | Consumer | $417,190 | $201,275 | | **Total portfolio loans** | **$18,828,626** | **$12,656,429** | Allowance for Credit Losses (in thousands) | (in thousands) | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Allowance for credit losses - loans** | **$223,866** | **$138,766** | | Allowance for credit losses - loan commitments | $6,168 | $6,120 | | **Total allowance for credit losses** | **$230,034** | **$144,886** | | ACL - loans / Total portfolio loans | 1.19% | 1.10% | - The increase in the allowance for credit losses was primarily driven by the initial allowance on loans acquired in the PFC transaction, as well as adjustments for regional macroeconomic factors and an increase in specific reserves[70](index=70&type=chunk) - Non-accrual loans increased to **$84.3 million** at June 30, 2025, from **$39.8 million** at December 31, 2024. Approximately **$18.9 million** of the non-accrual loans at quarter-end were acquired from PFC[86](index=86&type=chunk) [Note 14. Business Segments](index=41&type=section&id=Note%2014.%20Business%20Segments) This note outlines Wesbanco's two reportable segments, Community Banking and Trust and Investment Services, and their respective financial performance - Wesbanco operates two reportable segments: Community Banking and Trust and Investment Services. The Chief Operating Decision Maker (CODM) uses net income to evaluate segment performance[152](index=152&type=chunk) Segment Performance (in thousands) | (in thousands) | Community Banking | Trust and Investment Services | Corporate Other | Total | | :--- | :--- | :--- | :--- | :--- | | **For the Six Months Ended June 30, 2025** | | | | | | Total revenues | $374,550 | $16,680 | $(9,421) | $381,809 | | Segment profit (loss) | $59,314 | $5,225 | $(16,116) | $48,423 | | **For the Six Months Ended June 30, 2024** | | | | | | Total revenues | $272,796 | $13,312 | $(8,119) | $277,989 | | Segment profit (loss) | $69,912 | $4,087 | $(9,390) | $64,609 | - The market value of trust assets increased to approximately **$7.2 billion** at June 30, 2025, from **$5.6 billion** at June 30, 2024[153](index=153&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=46&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations, highlighting the significant impact of the Premier Financial Corp. (PFC) acquisition, including analysis of earnings, net interest income, credit loss provisions, and balance sheet changes [Earnings Summary](index=47&type=section&id=Earnings%20Summary) This section summarizes the company's earnings performance, including GAAP and non-GAAP adjusted net income and diluted EPS, with a focus on the impact of the PFC acquisition Earnings Performance (in millions, except per share) | (in millions, except per share) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | **Net Income (to common)** | **$54.9** | **$26.4** | **$43.4** | **$59.5** | | Diluted EPS | $0.57 | $0.44 | $0.50 | $1.00 | | **Adjusted Net Income (Non-GAAP)** | **$87.3** | **$29.4** | **$138.5** | **$62.5** | | Adjusted Diluted EPS (Non-GAAP) | $0.91 | $0.49 | $1.60 | $1.05 | - Q2 2025 earnings were significantly impacted by the PFC acquisition. Excluding merger-related expenses, adjusted net income available to common shareholders was **$87.3 million**, or **$0.91** per diluted share[179](index=179&type=chunk) [Net Interest Income](index=48&type=section&id=Net%20Interest%20Income) This section analyzes the drivers of net interest income, including the impact of the PFC acquisition, loan growth, asset yields, and changes in net interest margin - Net interest income for Q2 2025 increased **85.9%** YoY to **$216.8 million**, driven by the PFC acquisition, organic loan growth, and higher asset yields. Purchase accounting accretion contributed **$22.5 million** to NII in the quarter[180](index=180&type=chunk) Net Interest Margin and Yields | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Interest Margin | 3.57% | 2.92% | | Net Interest Margin (FTE) | 3.59% | 2.95% | | Yield on Earning Assets | 5.56% | 5.11% | | Cost of Interest-Bearing Liabilities | 2.69% | 3.12% | - Average loans increased by **56.8%** and average deposits increased by **56.7%** in Q2 2025 compared to Q2 2024, primarily due to the PFC acquisition[180](index=180&type=chunk) [Financial Condition](index=53&type=section&id=Financial%20Condition) This section discusses the company's balance sheet changes, including growth in total assets, portfolio loans, deposits, and shareholders' equity, primarily due to the PFC acquisition - Total assets grew **47.6%** to **$27.6 billion** at June 30, 2025, from **$18.7 billion** at December 31, 2024, primarily due to the PFC acquisition[217](index=217&type=chunk) - Total portfolio loans increased by **$6.2 billion** (**48.8%**) since year-end 2024, driven by **$5.9 billion** in acquired PFC loans and **$0.3 billion** in organic growth[217](index=217&type=chunk)[233](index=233&type=chunk) - Total deposits increased by **$7.0 billion** (**49.7%**) since year-end 2024, reflecting **$6.9 billion** from the PFC acquisition[217](index=217&type=chunk) - Shareholders' equity increased by **$1.0 billion** (**36.9%**) to **$3.8 billion**, mainly due to common stock issued for the PFC acquisition[217](index=217&type=chunk)[255](index=255&type=chunk) [Capital Resources](index=60&type=section&id=Capital%20Resources) This section reviews the company's capital adequacy, presenting key regulatory capital ratios and confirming compliance with "well capitalized" minimums Regulatory Capital Ratios (%) | Ratio | Wesbanco, Inc. (June 30, 2025) | Well-Capitalized Minimum | | :--- | :--- | :--- | | Tier 1 leverage | 8.66% | 5.00% | | Common equity Tier 1 | 9.90% | 6.50% | | Tier 1 capital to risk-weighted assets | 10.59% | 8.00% | | Total capital to risk-weighted assets | 13.40% | 10.00% | - At June 30, 2025, all regulatory capital levels for both the holding company and the bank were substantially above the minimums required to be considered "well capitalized"[257](index=257&type=chunk) [Liquidity Risk](index=61&type=section&id=Liquidity%20Risk) This section assesses the company's liquidity position, including available sources of liquidity, the proportion of uninsured deposits, and borrowing capacity - The company maintains a strong liquidity position with total expected sources of liquidity within the next year estimated at **$7.2 billion**[263](index=263&type=chunk) - Uninsured deposits were **32%** of total deposits at June 30, 2025. Excluding collateralized public funds, the ratio of uninsured deposits was **21%**[265](index=265&type=chunk) - Available borrowing capacity with the FHLB was approximately **$5.1 billion** at June 30, 2025[266](index=266&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=63&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details the company's exposure to market risk, primarily interest rate risk, describing the role of the Asset/Liability Committee (ALCO) and the use of earnings sensitivity models to monitor and manage this risk within established policy limits Net Interest Income Sensitivity to Interest Rate Changes | Immediate Change in Interest Rates (bps) | % Change in Net Interest Income (over 1 year) | | :--- | :--- | | +200 | 2.2% | | +100 | 1.0% | | -100 | (1.4%) | | -200 | (3.6%) | - The company's net interest income simulation model shows a slightly asset-sensitive position, with a **100 basis point** parallel rate increase projected to increase NII by **1.0%** over one year. All scenarios are within ALCO policy guidelines[278](index=278&type=chunk)[279](index=279&type=chunk) [Item 4. Controls and Procedures](index=65&type=section&id=Item%204.%20Controls%20and%20Procedures) This section contains management's evaluation of the company's disclosure controls and procedures, concluding their effectiveness as of June 30, 2025, with no material changes to internal control over financial reporting identified - The CEO and CFO concluded that Wesbanco's disclosure controls and procedures were effective as of the end of the period covered by the report[286](index=286&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal controls[288](index=288&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=66&type=section&id=Item%201.%20Legal%20Proceedings) This section discloses that the company is involved in various legal proceedings arising in the ordinary course of business but does not believe any material loss is reasonably possible - Wesbanco is involved in various lawsuits and claims in the ordinary course of business but does not believe a material loss is reasonably possible from these proceedings[291](index=291&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=66&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's stock repurchase plan activity, including the number of shares purchased during the quarter and the remaining authorization Stock Repurchase Activity | Period (2025) | Total Shares Purchased | Average Price Paid ($) | Shares Purchased as Part of Plan | | :--- | :--- | :--- | :--- | | April | 36,437 | $31.24 | — | | May | 4,224 | $30.75 | — | | June | 54,241 | $31.98 | 51,198 | | **Total Q2** | **94,902** | **$31.64** | **51,198** | - As of June 30, 2025, **918,391 shares** remained available for repurchase under the company's active stock repurchase plan[292](index=292&type=chunk) [Item 5. Other Information](index=66&type=section&id=Item%205.%20Other%20Information) This section confirms that no directors or executive officers adopted, modified, or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter - During the three months ended June 30, 2025, no directors or executive officers adopted, modified, or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement[294](index=294&type=chunk) [Item 6. Exhibits](index=67&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including a separation agreement, certifications by the CEO and CFO as required by the Sarbanes-Oxley Act, and XBRL data files

Financial Data and Key Metrics Changes - Earnings per share (EPS) for the second quarter was $0.91, excluding merger-related charges, representing an 86% increase year over year [5][14] - Net interest margin improved to 3.59%, a 64 basis point increase year over year [6][17] - Net income excluding merger and restructuring expenses was $87.3 million, compared to $29.4 million in the prior year [5][14] - Total assets increased by 52% year over year to $27.6 billion, driven by the Premier acquisition and organic growth [15] Business Line Data and Key Metrics Changes - Fee income grew by 40% year over year, totaling $44 million in the second quarter [8][18] - Organic loan growth was 6% year over year, with total commercial loans increasing by 7% [10][14] - The trust and securities brokerage business grew to $10 billion in assets under management [8] Market Data and Key Metrics Changes - Total deposits increased by 58% year over year to $21.2 billion, with organic growth of $849 million [17] - Organic deposit growth excluding certificates of deposit was more than 5% year over year [9] Company Strategy and Development Direction - The company aims to grow fee income as a percentage of total revenue and expand its presence in new markets, including Knoxville and Northern Virginia [9][11] - Strategic investments are being made in the healthcare sector to meet unique client needs [11][32] - The focus remains on executing the Premier acquisition and enhancing operational efficiency [33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about loan growth despite potential headwinds from commercial real estate payoffs [71] - The company anticipates mid to upper single-digit loan growth for the remainder of 2025 [37][39] - Management expects to fund loan growth with deposit growth for the full year [9][17] Other Important Information - The efficiency ratio improved by 10 percentage points year over year to 55.5% [6] - The company has begun to see a rebound in deposits in July after a seasonal decline [17] - Regulatory capital ratios remain above well-capitalized standards [19] Q&A Session Summary Question: Increase in criticized loans and maintaining credit culture - Management noted that the increase in criticized loans is primarily due to regrading of acquired clients, but they expect improvements in the third quarter [28][30] Question: Capital deployment priorities - The company prioritizes dividends and organic growth, with M&A and buybacks being lower on the list [31][33] Question: Loan growth expectations - Management targets mid to upper single-digit growth, contingent on commercial real estate payoffs [37][39] Question: Branch rationalization - The company will evaluate branch profitability and may close some branches in the second half of the year [40][41] Question: Margin accretion assumptions - Management anticipates a drop in margin accretion in the third quarter but expects a rebound in the fourth quarter [46][63] Question: Deposit pipelines and growth - The company plans to launch a new deposit campaign and expects robust growth in the commercial space [78][80] Question: Preferred stock and subordinated debt refinancing - Management is evaluating options for calling preferred stock and refinancing subordinated debt that will reset soon [90][91]

Financial Data and Key Metrics Changes - The company reported earnings per share of $0.91 when excluding merger-related charges, an increase of 86% year over year [5][13] - Net interest margin improved to 3.59%, reflecting a 64 basis point increase year over year [6][16] - Net income excluding merger and restructuring expenses was $87.3 million, compared to $29.4 million in the prior year period, representing a nearly 200% increase [13][14] Business Line Data and Key Metrics Changes - Fee income grew by 40% year over year, totaling $44 million in the second quarter [6][17] - Total portfolio loans increased by 53.6% year over year, with $5.9 billion from the Premier acquisition and $670 million from organic growth [14] - Organic loan growth was 6% year over year, with total commercial loans increasing by 7% year over year [9][14] Market Data and Key Metrics Changes - Total deposits increased by 58% year over year to $21.2 billion, driven by Premier deposits and organic growth [16] - Organic deposit growth excluding certificates of deposit was more than 5% year over year [8] - The commercial loan pipeline as of June 30 was approximately $1.3 billion, with roughly 30% attributable to new markets [9] Company Strategy and Development Direction - The company aims to grow fee income as a percentage of total revenue and expand its presence in new markets, including healthcare and commercial lending [8][11] - Strategic investments are being made in new loan production offices in Knoxville and Northern Virginia to enhance growth potential [11][81] - The focus remains on executing the Premier acquisition and leveraging new treasury management products to drive growth [32][93] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future loan growth, citing strong pipelines and a commitment to maintaining credit quality [15][70] - The company anticipates mid to upper single-digit loan growth for the remainder of 2025, despite potential headwinds from commercial real estate payoffs [37][70] - Management expects to fund loan growth with deposit growth for the full year, despite a seasonal decline in deposits [8][16] Other Important Information - The company successfully converted customer data systems from Premier, enhancing operational efficiency [6][7] - The efficiency ratio improved by 10 percentage points year over year to 55.5% [6] - Regulatory capital ratios remain above well-capitalized standards, with Tier one leverage at 8.7% [19] Q&A Session Summary Question: Increase in criticized loans and maintaining credit culture - Management noted that the increase in criticized loans is primarily due to regrading of acquired clients, but they expect improvements in the second half of the year [28][30] Question: Capital deployment priorities - The company prioritizes dividends and organic growth, with M&A and buybacks being lower on the list [31][32] Question: Loan growth expectations - Management targets mid to upper single-digit growth, contingent on commercial real estate payoffs [37][70] Question: Branch rationalization - The company will evaluate branch profitability and may close some branches in the second half of the year [40][41] Question: Margin accretion assumptions - Management anticipates a drop in margin accretion in the third quarter but expects a rebound in the fourth quarter [47][60] Question: Integration of Premier - The focus is on driving growth and ensuring new employees are familiar with company processes following the successful systems conversion [49][50] Question: Deposit pipelines and growth - The company plans to launch a new deposit campaign and expects robust growth in the commercial space [78][79] Question: Preferred stock and sub debt refinancing - Management is evaluating options for calling preferred stock and refinancing sub debt that will reset soon [87][88]