Good day, and welcome to the WesBanco first quarter 2026 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to John Iannone, Senior Vice President of Investor Relations. Please go ahead.
Thank you. Good morning, and welcome to WesBanco, Inc.'s first quarter 2026 earnings conference call. Leading the call today are Jeff Jackson, President and Chief Executive Officer, and Dan Weiss, Senior Executive Vice President and Chief Financial Officer. Today's call, an archive of which will be available on our website for one year, contains forward-looking information. Cautionary statements about this information and reconciliations of non-GAAP measures are included in our earnings-related materials issued yesterday afternoon, as well as our other SEC filings and investor materials. These materials are available on the investor relations section of our website, wesbanco.com. All statements speak only as of April 22nd, 2026, and WesBanco undertakes no obligation to update them. I would now turn the call over to Jeff. Jeff?
Thanks, John, and good morning, everyone. Today, we'll walk you through our first quarter performance and share our current outlook for the rest of 2026. There are three key takeaways from the quarter. We delivered solid year-over-year financial results. We exceeded our year one financial targets for the Premier acquisition. We stayed disciplined in executing our strategy to position WesBanco for long-term success. Overall, it was a solid start to the year. Turning to our financials, for the quarter ended March 31st, 2026, we reported net income available to common shareholders of $87 million, excluding merger and restructuring charges. That translated to diluted earnings per share of $0.91, up 38% from a year ago. On a similar basis, we reported pre-tax, pre-provision earnings of $114 million, an increase of 44% year-over-year.
The strength of our first quarter financial performance was reflected in our returns on average assets and tangible common equity of 1.3% and 17.4% respectively. Our capital position also remains solid with a CET1 ratio of 10.7%. That gives us flexibility to support growth and navigate the operating environment ahead. As we mentioned last quarter, developers continue to seek permanent financing or the sale of properties. During the first quarter, that drove elevated commercial real estate project payoffs, which totaled $340 million during the first quarter and created a 1.4% headwind to our year-over-year loan growth. In fact, we have incurred a significant CRE payoff headwind of $1 billion during the last nine months. Despite that headwind, our teams continued to execute at a high level.
Loan growth was largely funded by deposit growth, and our commercial pipeline has reached all-time record levels. Adjusting for the payoff activity, total loans grew 3.6% year-over-year. The commercial pipeline has increased 35% since year-end to a record $1.6 billion. In the few weeks since quarter end, the pipeline has grown another $200 million to $1.8 billion. About 45% of that pipeline is coming from existing loan production offices and the former Premier footprint. Impressively, this pipeline does not yet reflect the benefit of our recently announced South Florida expansion. That team has hit the ground running and built an initial $400 million pipeline just in a few weeks. They are on pace to grow that pipeline by a significant amount as the year progresses.
Even with elevated CRE payoffs during the first half of the year and the potential of influence of geopolitical events, we continue to expect mid-single digit year-over-year loan growth for 2026, supported by our record pipeline and early momentum from our South Florida markets. A little over a year ago, we completed our transformative acquisition of Premier Financial, an acquisition that placed WesBanco among the 50 largest publicly traded banks in the U.S. When we announced the Premier acquisition in July 2024, we laid out clear financial targets for the first year, including 40% earnings per share growth, a 1.3% return on average assets, and a CET1 ratio of 9.6%, along with a tangible book value earned back in under three years. I'm pleased to say we delivered, and in many cases, exceeded our targets.
Over the last 12 months, core EPS growth reached 49% and ROAA was 1.3%. We also exceeded the pro forma CET1 ratio by more than a percentage point and shaved more than a year off the dilution earn back as our first quarter tangible book value per share of $22.45 is well above the June 2024 figure and nearly at the year-end 2024 level. In addition, we have been making other strategic investments that demonstrate our commitment to long-term sustainable growth. We continuously invest in digital capabilities and products like WesBanco One Account and treasury management services to ensure we serve our customers how, when, and where they want. At the same time, we continue to optimize our physical branch network.
Over the past four years, we've closed 64 locations with limited customer traffic, including 10 of them in Northern Ohio that will close next month. We're selectively opening new financial centers in key markets and consolidating others into more central and higher demand locations. Our loan production office strategy continues to perform well. We've opened LPOs in high growth markets including Chattanooga, Indianapolis, Knoxville, Nashville, and Northern Virginia. We're seeing strong results as these teams deepen relationships and bring on new commercial clients. As these offices achieve scale, we add product capabilities locally as well as financial centers to better serve our growing client base. Chattanooga is a great example. We opened that LPO less than three years ago, and it has generated strong relationship-driven growth. That momentum supports the opening of our first Tennessee financial center this week.
We anticipate that several other of our LPOs will follow this pattern within the next couple of years. I'm very excited about our recent expansion into Florida, which is a thoughtful extension of our long-stated southeastern expansion strategy. Last month, we announced the launch of our commercial banking business across key high-growth South Florida markets, starting with Palm Beach and Broward counties. We brought on a seasoned team of nearly 20 professionals, including market leaders, commercial bankers, credit underwriting, and a client relationship support, as well as a treasury management leader. These are attractive high growth markets and ones I've come to know well during my banking career. I've worked with many of these bankers before, and they consistently delivered top performance while maintaining strong credit discipline. Just as importantly, their client focus aligns well with our relationship-led approach.
Our Florida expansion also provides meaningful organic growth opportunities for our strong healthcare banking vertical. As the regional business, which is primarily focused on C&I lending, develops, we will evaluate additional services and solutions, including retail financial centers, treasury, wealth management, and mortgage offerings to deliver even a greater value to our clients. I would now like to turn the call over to Dan to walk through the financials and outlook in more detail. Dan?
Thanks, Jeff, and good morning. For the first quarter, we reported GAAP net income available to common shareholders of $84 million or $0.88 per share. When excluding restructuring and merger-related expenses, first quarter net income was $87 million or $0.91 per share. To highlight a few of the first quarter's year-over-year accomplishments, we generated strong pre-tax, pre-provision core earnings growth of 44%, grew core earnings per share by 38%, improved the net interest margin by 22 basis points, and reduced the efficiency ratio by nearly 4 percentage points to 52.5%. Total assets of $27.5 billion include total portfolio loans of $19.1 billion and securities of $4.4 billion. Total portfolio loans increased 2.2% year-over-year, driven by commercial real estate and home equity lending, and declined slightly on a sequential quarter basis due to elevated payoffs.
We expect CRE payoffs to remain slightly elevated during the second quarter, but at a lower level than the first quarter before returning to a more normal historical level during the back half of the year, totaling $700-$900 million for the year. While very small, we ended our indirect auto program as it's not core to our organic growth strategy. At quarter end, it represented about half of the $325 million of consumer loan portfolio, and we anticipate that that portfolio will run off over the next three-five years. Deposits increased 2% year-over-year to $21.7 billion due to organic growth. We continue to be successful in remixing higher cost certificates of deposit into interest-bearing demand deposits and of our remaining $2.7 billion CD portfolio, approximately $1 billion matures in each of the next two quarters with an average rate of 3.48% and 3.2% respectively.
Our current seven-month CD rollover rate is 3.25%. Further, we started the year with $100 million in broker deposits, $50 million paid off early in the quarter while the last of our broker deposits paid off on April 1st. Credit quality continues to remain stable as key metrics have remained low from a historical perspective and favorable to all banks with assets between $20 billion-$50 billion over the last five quarters. Criticized and classified loans as a percentage of total portfolio loans decreased $49 million or 24 basis points from the sequential quarter to 2.9%, while non-performing loans increased $53 million sequentially, primarily due to three CRE loans across different markets and property types, none of which were office. The allowance for credit losses on the total portfolio loans at the end of the first quarter was 1.1% of total loans, or $210 million.
The decrease from the fourth quarter was primarily due to lower loan balances, faster prepayment speeds, and macroeconomic factors. The first quarter margin of 3.57% improved 22 basis points year-over-year through a combination of lower funding costs and higher security yields, but declined 4 basis points sequentially. This decrease resulted primarily from lower net loan growth, as well as modestly higher seasonal deposit contraction in the first two months of the quarter, which fully recovered by the end of March. Total deposit funding costs, including non-interest-bearing deposits, declined 11 basis points year-over-year and 7 basis points quarter-over-quarter to 177 basis points. The first quarter non-interest income of $41.8 million increased $7.2 million or 21% year-over-year, due primarily to the acquisition of Premier, combined with organic growth.
Service charges on deposit and digital banking fees improved due to increased general spending and higher transaction volumes from our larger customer base, as well as organic growth from treasury management, which generated revenue of $2.5 million in the first quarter, representing an 82% increase year-over-year. Reflecting record asset levels, which totaled $10.4 billion combined, trust fees and net securities brokerage revenue increased due to the addition of Premier wealth clients, market value appreciation and organic growth. Noninterest expense, excluding restructuring and merger-related costs for the first quarter of 2026, was $143 million, a 25% increase year-over-year due to the addition of the Premier expense base, which was only in the WesBanco expense base for one month in the prior year period, higher core deposit and tangible asset amortization from the acquisition and higher FDIC insurance expense due to our larger asset size.
On a similar basis, operating expenses were down slightly from the sequential quarter, reflecting our focus on managing discretionary expenses and some one-time credits approximating $2 million. Please note that the first quarter does not fully reflect our strategic expansion into South Florida as the hiring occurred late in the quarter. If we turn to capital, all of our key ratios improved quarter-over-quarter. Our CET1 ratio as of March 31st was 10.7%, which increased more than anticipated due to lower Risk-Weighted Assets during the quarter. Based on the strategic investment that we're making in the Southeast Florida and other markets, we anticipate CET1 to now build 5-10 basis points per quarter for the remainder of the year, putting us on pace for our 11% CET1 target by year-end.
Turning to the outlook, our current outlook for 2026 includes our Southeast Florida expansion, which currently totals nearly 20 individuals and is expected to achieve positive operating leverage within 12-15 months and be additive to our long-term financial outlook. We've removed our previous rate cuts from our modeling and currently do not anticipate any cuts or increases during the remainder of 2026. We anticipate our second quarter net interest margins to rebound into the low 3.60s% and then continue to improve into the mid- to high 3.60s% during the second half of the year. This assumes, among other things, that the competition for loans and deposits remains stable, loan growth is fully funded by deposits and an upward-sloping yield curve. Generally speaking, there are no meaningful changes to our fee income outlook from the last quarter.
Trust fees and securities brokerage revenues should benefit modestly from organic growth and be influenced by equity and fixed income markets. As a reminder, first quarter trust fees are seasonally higher due to tax preparation fees. Mortgage banking should grow modestly over 2025, beginning in the spring, driven by recent hiring initiatives. Total treasury management revenues should see increases from 2025 as the compounding effect of our services continue to expand. Gross commercial swap fee income, excluding market adjustments, should be in the $8 million-$10 million range. Overall, we currently anticipate our quarterly fee income to grow in the 3%-5% range year-over-year during the remainder of 2026. While we remain focused on delivering disciplined expense management, we are making strategic investments to drive long-term value for our shareholders.
We're closing 10 financial centers during May and anticipate the annual savings of approximately $2 million to begin to be realized midway through the second quarter. Salaries and wages will increase, reflecting the South Florida expansion and the annual midyear merit increases, which take effect midway through the second quarter. Occupancy expense should be flat to slightly down compared to 2025 due to our branch optimization efforts, slightly offset by our branch expansion initiatives in our new and existing markets. While equipment and software expenses are expected to increase somewhat as compared to 2025 as we continue to invest in products, services and technology to improve the customer experience and drive revenue growth. In support of our organic loan and deposit growth model and our commercial lending expansion efforts, marketing is expected to increase to approximately $4 million per quarter.
Based on what we know today, we expect our expense run rate during the second quarter to approach $150 million and then to increase a couple of percentage points in the third quarter.
From a full quarter of mid-year merit increases. The provision for credit losses will depend on changes to the macroeconomic forecast and qualitative factors, as well as various credit quality metrics, including potential charge-offs, criticized and classified loan balances, delinquencies, changes in prepayment speeds and future loan growth. Finally, we anticipate our full year effective tax rate to be between 20%-21%. This concludes my remarks. Operator, we're now ready to take questions.
We'll now begin the Q&A session. To ask a question, you may press star then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. Please limit yourselves to one question and one follow-up, then return to the queue. At this time, we'll pause momentarily to assemble our roster. Your first question today comes from Manuel Navas with Piper Sandler. Please go ahead.
Hey, I appreciate having us on for the comments. What are the funding expectations around the South Florida commercial lending team? Can you dive a little bit more into your ties to the area and the potential to add to that team?
Yeah, sure. Good morning. I'll start with the ties to South Florida. As you may or may not know, I worked as the regional president in South Florida when First Horizon bought Capital Bank and really built out that team. I worked down there back in 2018 through essentially 2020, 2021. They're a very top-performing team. When the opportunity came around to bring them over to WesBanco, it just seemed like a perfect partnership. As I mentioned before, I kind of put together that team back at my previous employer. When you look at what they can do and where they're headed, I think it's going to be one of our big growth drivers for this year and future years. We are opening up two offices, as mentioned, Palm Beach and Broward. We would also follow up with two branches as well.
When you look at the funding piece, we are expecting them to provide a significant piece of funding their own loan growth. That will be followed up with two branch locations, which we'd hopefully have opened by the end of the year. Overall, we feel like it's a great growth market. I think your other piece of that question was more expansion. We are looking at other markets there in Florida as my previous history, I had the whole state of Florida. We will be looking to add additional people when the right people come along. Do believe, and as I mentioned in my prepared remarks, they have a current pipeline of about $400 million, and I feel like the loan growth and the revenue opportunities there will help propel us into the future.
I appreciate that. Diving a little bit back more deeply into the NIM outlook, can you speak to more of the components there that should drive the improvement from here? Can you have deposit declines beyond CDs? What's kind of current pricing levels on the loan book? If you could walk through some of the wild cards there on the NIM?
Yeah, sure, Manuel. I'll take that one. We talked about 3-5 basis points of NIM improvement here in the second quarter. A lot of that is really the repricing of the back books for both loans as well as securities. Then kind of an assumption that we're going to fund the majority of the deposits or the loan growth with deposits in the second quarter. As you know and as you heard in my prepared remarks, we did see a little bit of outflow here in the first-quarter deposits, which is seasonally expected. It was just a little heavier than anticipated. We also saw about $150 million of non-interest-bearing migrate into interest-bearing. Those two things kind of combined with the loan growth, which kind of provided that headwind to first-quarter margin.
If we think towards that 3-5 basis points, when I talk repricing, we do have about $400 million of fixed rate commercial loans, weighted average rate of about 4.25% that'll mature in the next 12 months. Those will be repricing up almost 200 basis points into the low sixes. We've also got another $400 million of variable rate loans. These are those that would be repricing 48-60 months roughly, that would be coming due in the next 12 months. Weighted average rate there is about 3.75%. So that's going to provide some nice tailwind as well. And if we just think about other sources, securities cash flow, that's beginning to tick up a little. We're kind of projecting around $275 million in securities cash flows per quarter.
That's going to reprice upward from kind of call it 3.3% up to about 4.75%-5%, depending on where rates are. That's another nice pickup of about 150 basis points or so. Then, of course, as I mentioned in the prepared commentary, we do have a continued downward repricing of the CD book. Particularly that $1 billion of first quarter CDs that reprice down about 40-50 basis points, that's going to benefit the second quarter quite a bit.
Similarly the $1 billion in the second quarter of CDs that are maturing, those are going to reprice down about 25 basis points. That will begin to benefit second quarter and really kind of fully benefit third quarter. I think those are probably the major items. I mentioned again in the prepared commentary that we did pay down the remainder of our broker deposits. We had $100 million in brokered on the books, at the beginning of the year. $50 million of those paid down kind of early in the first quarter, the other $50 million on April 1st. That also would provide, I believe some nice tailwind towards that 3-5 basis points of margin expansion here in the second quarter.
I appreciate that commentary. Just, if there is rate cuts, where would that impact this progression, if at all?
Yeah. We're pretty neutral. I would say there's not a whole lot of movement one way or the other with rate cuts. Certainly our commercial loan portfolio, 50% of that is variable rate reprices within three months. We'd also be able to reprice downward our deposits. Our FHLB borrowings are all mostly 1-month advances. We think that in a rate cut scenario or a rate hike scenario, which is now potentially on the table, we would be in a great spot.
Thank you for the commentary.
Your next question comes from Jake Civiello with D.A. Davidson. Please go ahead.
Hey, good morning, Jeff, Dan, and John.
Hey, good morning, Jake.
Good morning.
wanted to touch on the uptick in NPAs. Obviously, you mentioned that the three non-office credits were the driver. Can you provide a little bit more details in terms of what actually those credits were?
Yes, I can. They were, as I mentioned, legacy Premier credits. They're all three in three different markets. Two are multi-family. I would tell you that we feel like we're very well collateralized there, and well reserved for those three, and feel like that we will be working out of those. Once again, there are three credits. I think the other piece I would highlight is the CNC did tick down back to our kind of normal range, sub 3%, which is top in our peer group. We are looking at those NPAs and do still feel very good about working through those three credits.
It's also worth kind of recognizing that those NPAs or non-accrual loans are included in the CNC total. That 24 basis point reduction in CNC, that includes these as well. Continue to see positive momentum on the credit front.
Okay, I appreciate that. Thank you.
Your next question comes from Karl Shepard with RBC Capital Markets. Please go ahead.
Hey, good morning, guys.
Hey, good morning, Karl.
Morning, Karl.
Congrats on getting the Florida team in place.
Thank you.
I guess I wanted to start there. You highlighted the pipeline, I think, around $400 million.
Yes.
Can you help us understand maybe your expectations for how much of that you would think can close? Is that over the rest of the year, or is there a little bit longer timeline?
Yeah. I think that they will close their first deal this month. I would hope that by the end of the quarter, they would have anywhere from, this is a guess, but, $100 million closed this quarter. I would hope by the end of the year anywhere from $300 million-$500 million closed, could be more, depending on the number of bankers we continue to add there. That's just not loans. We would be bringing over full relationships. Once again, we hope to have a couple of depository branches open soon. This would also include fees and treasury management services and all those other things. No, I think it's going to be a heavy driver for us this year.
Just while we're talking about it, just to bring up, I think our overall pipeline, if I look back and compare it to last year, this time, I think our pipeline last year was about $1.2 billion. Today we sit at nearly $2.3 billion-$2.4 billion. If I look at that and then I also look at payoffs, at least what we see today for the quarter. Today we see about $100 million less payoffs than we saw in first quarter. When I combine a much higher pipeline, less payoffs than we see today, I feel very good about where we stand from a loan growth perspective for the rest of the year.
Okay. That's helpful. I guess, just on the payoff piece, I think you just said it, but I just want to just clear it up too because I know this is an area of concern. I think last quarter you thought $600-$800 for the full year. I think you said $700-$900 today. The first quarter was maybe just a little bit of pull forward of stuff you thought was going to pay off. Is that a fair way to see it? There's really not much of a change in your expectation and obviously the pipelines are strong and the production looks solid as well. Is that a fair way to frame it?
Yeah, 100%. Some of the payoffs moved to first quarter, as I mentioned. We saw this current quarter less payoffs in the first quarter of over $100 million. No, I think that's a perfect way to see it. The other thing I would add, just the first quarter is we had a couple of MDI loans that we decided we were not going to be in that business. Just to point out that we have a very small exposure, like, I think less than $50 million to MDIs. We chose not to do a couple of those deals in the first quarter that could have given us some more loan growth. Then we did have a couple deals really slide from first quarter to second quarter. Some of this is really just a timing issue with the loan growth.
Okay, great. Thank you all.
Thanks.
Your next question comes from Russell Gunther with Stephens. Please go ahead.
Hey, good morning, guys.
Hey, good morning, Russell.
Also, hey, Jeff Jackson. Just following up on the pipeline discussion here, would be helpful to get a sense of the mix and the yield, and then just in general, how you guys are thinking about pull-through rates relative to historical level?
Yeah, I think the mix, if I was to look at it, I would say it's probably 60-40 CRE to C&I, would be my guess. Then the yields, I'm going to guess the low- to mid-sixes from a loan yield perspective. Once again, I would also highlight that everything we do is a full relationship that has some level of deposits and treasury management services. As far as the pull-through, I don't see it being any different than what we've seen in the past from adding and closing business. Obviously, the new markets will have to measure that with Florida coming on. Once again, feel very good about where we're at. Some of this loan growth is a timing thing, and I do believe we will see strong loan growth for the rest of the year.
That's helpful, Jeff. Thank you. Switching gears for my second question here would be to capital. CET1, roughly 10.7% today. Do you guys have a preliminary sense for the impact of the Basel III proposal on RWAs and CET1? Would there be any shift in your appetite to consider repurchases?
Yeah, Russell, I'll take that one. Great question. I think we're still obviously evaluating the impact there, but preliminary estimates kind of indicate that we would see a benefit to CET1 of about 5%-6%. On a 10.7% ratio today, that's worth about 55-65 basis points. That frees up about, call it, around $120 million or so in capital. That certainly would provide opportunity to deploy, whether that be through buyback or additional growth. I think that certainly would accelerate the buyback view. Like I said in the prepared commentary, we've built capital back very quickly here in the first quarter, up to 10.7%. We were kind of projecting that to be closer to 10.5%. Of course, lower risk-weighted assets is what drove that extra kind of 20 basis points of CET1 here in the first quarter.
With the growth that we're anticipating from all of the things that Jeff has discussed, we expect that to slow down a little, the growth in CET1. Like I said, all of that being said, we do have today 900,000 shares available for repurchase. I think that now that we're above 10.5%, that's kind of our target. I think that it offers us more flexibility to evaluate how we can deploy that capital. As Jeff said, with the growth opportunity we have organically, we're going to continue to evaluate there.
Got it. Okay. Helpful, Dan. Thank you guys for taking my questions.
Thank you.
Once again, if you have a question, please press star then one. Your next question comes from Daniel Tamayo with Raymond James. Please go ahead.
Thanks. Morning, Jeff, Dan, John.
Danny.
Yeah, maybe just a clarification, Dan, for you on the expense guide. I think you said approaching $150 million in the second quarter and then a 2% growth, just so we're clear on that. We should be looking for roughly $153 million or so or just below that in the third quarter. Is that kind of the normal run rate, including all the new hires at that point? I know it's an ongoing thing, but just trying to get a sense for maybe where we're going to end the year.
Yeah, I would say that $ 152 million - $ 153 million is probably a pretty good estimate for third quarter, as you said. It is going to be dependent on the commercial hiring and the investments that we're making here throughout with the market expansion. Today, that's where we're at. If we end up ticking any higher, that would be certainly very accretive to long-term earnings per share in that we'd be hiring revenue producers who'd be putting on loans and fee income, treasury management services, et cetera into 2026 and begin to benefit us in 2027.
Okay. I'm sorry if you guys talked about this, but are there any non-competes that we need to be aware of for the new hires?
Yes. They all have standard non-solicitation agreements that we work through. That's pretty standard in our industry, and we're 100% behind working through that and making sure they comply with all those different non-solicitations. There is no, as far as I'm aware, non-competes.
Got it. Is there a timeframe that we can think about that maybe starts to ramp after a certain period?
I would think that we would have significant progress from a ramping of business towards the end of the year for the Southeast Florida team. Once again, we think that they would close anywhere from $300 million-$500 million in new loans between now and the end of the year, and it could be higher than that based on some deals we're looking at. I think by third quarter, we'll have a very good feel, into third quarter, where this team stands. I have very high expectations of this team because I have worked with most of them in the past, and feel like they will be delivering a really great return for our bank.
Great. Thanks, Jeff. Maybe one more clarification for you, Dan, on the three loans that drove the increase in the NPLs. Overall reserves came down in the quarter, or at least as a percentage of loans. Were there incremental reserves taken on those three loans that were moved into NPL? I know you said you're comfortable with where they stand now. I'm just trying to get a sense for coverage of those loans as we look forward. Thanks.
Yeah, no. There were not incremental reserves taken on them. As I said, or as Jeff said, rather, they were generally well secured, well collateralized, and certainly evaluated, discussed, but nothing additional.
Okay. Thanks for taking my questions, guys. Appreciate it.
Yeah. No, thanks, Danny. One other thing I'll mention is we have started hiring another team in Nashville, and they have just started as well. There'll be more to come on that in future calls.
Your next question comes from Hannah Wynn with KBW. Please go ahead.
Hi. Thanks for taking my question. Hannah Wynn, stepping in for Catherine Mealor. I just had a quick question on deposits. I know you mentioned your deposits were going to fund your loan growth and deposits were flat for this quarter. Wondering where you see those trending for the rest of the year.
Yeah. Typically, they're pretty seasonal in first quarter where they drop and they come back to kind of flat. Second quarter, we start trying to build the deposit piece, with most of our deposits historically been coming in the third and fourth quarters. We do continue to see them. We are opening up a branch this week in Chattanooga, Tennessee, first Tennessee branch. That goes along with our LPO strategy. That is really critical. We have also increased incentives on driving deposits and feel like we expect to fund our loan growth, the majority of it, with deposit growth, and as we have done in the last two years. Dan, I don't know if you want to comment any more on deposit growth.
No, I think you nailed it. I think one of the keys, too, is just you're getting those branches in that Southeast Florida market up and running so we can take deposits.
Sounds good. Thanks for taking my question.
Thanks, Hannah.
This concludes our Q&A session. I would like to turn the conference back over to Jeff Jackson for any closing remarks.
Thank you. To wrap up, we remain focused on appropriate investments and disciplined execution of our long-term organic growth strategy. The successful integration of Premier, our continued expansion through loan production offices, and targeted investments in high growth markets, have positioned the company well to continue delivering value for our customers and our stakeholders. Thank you for joining us today. We appreciate your continued interest in WesBanco and look forward to speaking with you at one of our upcoming investor events.
The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.