Thank you. Good morning, and welcome to WesBanco Inc.'

s second 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 July 22nd, 2026, and WesBanco undertakes no obligation to update them.

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

Thanks, John, and good morning, everyone. Today, we'll review our second quarter performance and share our current outlook for the rest of 2026.

The defining theme of the quarter was momentum across our franchise. There are three key takeaways that really demonstrate that momentum.

We delivered strong sequential quarter and year-over-year loan growth. We advanced our organic growth strategy and commercial momentum, driving record production and pipeline.

We continued to generate profitable growth through positive operating leverage and disciplined execution. Turning briefly to our financial performance, our strong second quarter results reflect the continued success of our relationship-focused banking model and disciplined growth strategy.

For the quarter ended June 30th, 2026, we reported net income available to common shareholders of $89 million, excluding merger and restructuring charges. That translated to 92 cents per diluted share, while on a year-to-date basis, our earnings per share increased 14% to $1.83.

On a similar basis, we reported year-to-date pretax, pre-provision earnings of $242 million, an increase of 24% year-over-year. The strength of our financial performance was reflected in our second quarter and year-to-date returns on average assets and tangible common equity of 1.3% and 17.3%, respectively.

Further, we are demonstrating our ability to drive profitable growth across the franchise as we generated strong positive operating leverage and an efficiency ratio of 51%. Our capital position also remained solid with a CET1 ratio of 10.7%, which allowed us to repurchase approximately 300,000 shares during the quarter, while also providing flexibility to support our growth expectations.

The defining driver of our momentum this quarter was loan growth. Total loans increased 3.5% year-over-year and 8.3% annualized sequentially, as our talented teams converted opportunities across our 10-state footprint.

In particular, we continue to see the benefits from our recent growth investments as C&I lending demonstrated strong growth of 5% year-over-year and nearly 25% quarter-over-quarter annualized. During the first six months of the year, our commercial teams have generated record loan production of nearly $2.5 billion, approximately $1 billion more than the same period a year ago.

Impressively, second quarter loan growth significantly outpaced continued high levels of CRE payoffs, which created a 1% headwind to year-over-year growth. As we mentioned last quarter, we expected developers to continue to seek permanent financing and the sale of properties during the second quarter, but at a slower pace than the first quarter.

We experienced an upward swing during the latter half of the quarter that drove payoffs to total approximately $345 million for the second quarter, bringing the total amount of payoffs during the last 12 months to more than $1.3 billion. Adjusting for payoffs headwind during the quarter, total loans grew 4.5% year-over-year.

The fact that we generated this level of growth despite that headwind speaks to the strength of our customer demand and the effectiveness of our commercial teams. A great example of this customer demand was a recent win in our Mid-Atlantic market.

A team comprised of commercial, treasury management, derivatives, and credit recently achieved a major milestone with earning a meaningful partnership with one of the region's most distinguished educational institutions. The team met with this new-to-bank client to explore financing options for a comprehensive renovation and modernization project to revitalize its campus, which resulted in the largest non-profit school deal in our history.

The resulting transaction included a tax-exempt bond financing in excess of $34 million, a full deposit and treasury management partnership, and a six-figure swap fee. The dedication and expertise of this team are testaments to the power of collaboration, and further positions WesBanco as a trusted financial partner.

At June 30th, our commercial pipeline reached a record $2.3 billion, increasing more than 40% from the prior quarter and 90% since year-end. While our loan production offices and former premier markets continued to contribute meaningful to that growth, we are also seeing broad-based momentum across all our markets.

In the few weeks since quarter-end, the pipeline has remained stable, which gives us confidence in our outlook and supports our continued expectation for mid-single-digit loan growth in 2026. We are especially encouraged by what we are seeing in our expansion markets.

Last quarter, we announced the advancement of our southeastern expansion strategy with the launch of commercial banking and treasury management operations in Palm Beach and Broward counties. Last month, we expanded that strategy with the opening of a loan production office in Naples, extending our presence into another attractive Florida market.

Naples is led by a seasoned leader with strong track record in the market, an individual who I've known for many, many years. The early results from our Florida teams have been very encouraging.

In just three months, these teams have already begun generating new business, building meaningful customer relationships, and contributing to our record pipeline. Already, those teams account for approximately 10% of our total commercial pipeline, a proof point that our strategy is gaining traction.

I firmly believe that our Florida franchise has the potential to be a $2 billion bank within the next couple of years. As part of that strategy, we are on track to open financial centers in Fort Lauderdale and West Palm Beach during the first half of 2027, as we have already identified locations and received FDIC approval.

These banking centers will complement our commercial presence while enhancing our ability to gather deposits and deepen customer relationships to support future growth. Over time, we could add additional services such as wealth management and residential mortgage.

Finally, I am excited that our long-term strategy and disciplined approach to growth are being recognized on a national level. We were recently named one of America's high-growth companies by Business Insider and one of America's best companies by TIME.

What these recognitions really represent is the dedication of our teams and the consistency with which they execute our strategy every day. Our momentum and success continue to be driven by talented people, strong customer relationships, and a commitment to disciplined growth.

Our second quarter results demonstrate those fundamentals remain firmly in place and continue to position us well for the future. I would like to now turn the call over to Dan Weiss to walk through the financials and outlook in more detail.

Dan?

Thanks, Jeff, and good morning, everyone. For the second quarter, we reported GAAP net income available to common shareholders of $88 million, or 91 cents per share.

When excluding restructuring and merger-related expenses, second quarter net income was $89 million, or 92 cents per share. To highlight a few of the second quarter's year-over-year accomplishments, we grew pretax, pre-provision core earnings 11%, driven by strong annualized loan growth of 8.3%.

We also reported record fee income levels and record trust and securities brokerage assets, as well as a reduced efficiency ratio to a record low of 51%. Total assets of $27.8 billion included total portfolio loans of $19.5 billion and securities of $4.4 billion, with securities now representing approximately 16% of total assets.

Total portfolio loans increased 3.5% year-over-year due to organic growth of $650 million, partially offset by CRE payoffs. While we did experience elevated payoffs in the second quarter, similar to the first quarter, we continue to expect payoffs to taper during the second half of the year, with third quarter payoffs projected at roughly two-thirds of that of the second quarter level.

Now that said, based on our current record pipeline, we expect to be able to outgrow payoffs for the remainder of the year to generate mid-single-digit growth for the year. Deposits increased 2.1% year-over-year to $21.6 billion from transaction account growth that more than offset the decline in higher-cost CDs.

Encouragingly, deposit attrition related to the closure of 37 financial centers this year has trended meaningfully below our conservative attrition assumptions, such that deposits were only down $75 million sequentially, and mostly reflecting the remaining $50 million of brokered deposits that paid off on April 1st and the decline in higher-cost CDs. Credit quality metrics have remained relatively benign and in a consistent range from a historical perspective, while charge-offs were just 2 basis points.

The allowance for credit losses to total portfolio loans at June 30th, 2026, was 1.12% of total loans, or $218 million. The increase from the first quarter was primarily due to higher loan balances.

The second quarter margin of 3.63% was consistent with our first quarter outlook and improved 4 basis points year-over-year, primarily due to lower funding costs, and improved 6 basis points sequentially due to asset repricing and 3 basis points, or $1.7 million, of accretion from unscheduled early payoffs of acquired loans. Total deposit funding costs, including non-interest-bearing deposits, declined 6 basis points year-over-year to 178 basis points, which is essentially flat to the first quarter.

We are seeing great traction across our franchise for our fee-based services as we earned record fees from deposit products, digital banking services, and securities brokerage, not to mention the record level of trust and securities brokerage assets of nearly $11 billion. For the second quarter, non-interest income of $54 million increased $9.7 million, or 22%, year-over-year, due primarily to higher net swap and valuation income, service charges on deposits, and other income.

Gross swap fees were $2.8 million in the second quarter and $4 million on a year-to-date basis, as we are seeing solid customer demand for our commercial swap product, and expect to see some meaningful improvement in swap fees in the back half of the year from our new Florida market. Other income also included a non-recurring $4.8 million gain related to the pension plan freeze, which have been closed to new entrants approximately 20 years ago.

Gains on the sale of other real estate owned included a $1.6 million non-recurring gain on the sale of branch properties that were closed earlier in the year. Non-interest expense, excluding restructuring and merger-related costs, for the second quarter of 2026 of $148 million increased 1.8% year-over-year and 3.6% sequentially, primarily due to higher salaries and wages, which increased due to the recent hiring efforts, primarily in our southern footprint.

Those hiring efforts occurred through the second quarter, the quarter's results do not fully reflect the complete impact of that strategic expansion. Turning to capital, all of our key ratios improved quarter-over-quarter.

Our CET1 ratio of 10.7% as of June 30th was within our targeted range of 10.5% to 11%, which allowed us to return capital to our shareholders through the repurchase of approximately 300,000 shares on the open market during the second quarter. Based on the strategic investments that we're making in South Florida, we anticipate CET1 to remain in that 10.7% range through the remainder of the year as loan growth continues to accelerate.

Our current outlook for 2026 includes our targeted expansion markets, and we currently anticipate one Fed rate hike late in the fourth quarter with no meaningful impact to 2026 results. Earning asset yields should continue to benefit from loans and securities repricing upward, while deposit funding costs have likely hit a floor with the CD repricing benefit effectively fully repriced into the future-maturing book.

We anticipate our net interest margin for the remainder of the year to be relatively consistent to the second quarter around that 3.60% range as we expect loan growth in the back half of the year to accelerate and initially outpace deposit growth, requiring a blend of higher-cost wholesale funding mixed with lower-cost deposits. This assumes, among other things, that the competition for loans and deposits remains stable, as well as an upward-sloping yield curve.

We also expect strong deposit growth in the back half of the year, and to the extent we experience more than modeled, this could positively benefit margins. There are no meaningful changes to our fee income outlook provided last quarter.

Trust fees and securities brokerage revenue should benefit modestly from organic growth and be influenced by equity and fixed income market trends. Total treasury management revenues should see increases from 2025 as the compounding effect of our services continues to expand.

Gross commercial swap fee income, excluding market adjustments, should be in that $8 million to $10 million range, with our South Florida markets contributing meaningfully. Overall, we still anticipate our quarterly fee income to grow in that 3% to 5% range year-over-year during the remainder of 2026.

While we have been making strategic investments in our targeted expansion markets to drive long-term value for our shareholders, there are no meaningful changes to our expense outlook provided last quarter. Salaries and wages will increase, reflecting a full quarter of the South Florida team and the annual mid-year merit increases.

Occupancy expense should be slightly down as compared to 2025 due to our branch optimization efforts, offset somewhat by our branch expansion initiatives. 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 business expansion efforts, marketing is expected to be in the $5 million range per quarter. Therefore, we continue to expect our quarterly expense run rate during the third and fourth quarters to be in the $153 million range.

The provision for credit losses will depend upon changes to the macroeconomic forecast and qualitative factors, as well as various credit quality metrics, including the potential charge-offs, criticized and classified loan balances, and of course delinquencies, changes in prepayment speeds, and future loan growth. Lastly, we currently anticipate our full-year effective tax rate to be approximately 21%.

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

Good morning, gentlemen.

Good morning, Dave.

Good morning, Dave.

Hey, Jeff, Dan, sounds like you maybe have some line of sight into potential maybe commercial deposit growth or account wins in the second half of the year. You give a great deal on the loan pipeline.

Just curious any line of sight into maybe the deposit pipeline into the second half of the year.

Sure. Our loan-to-deposit ratio went up slightly, about 90%.

We feel like it's optimally performing in kind of that low 90s, but historically, what we've seen is in the back half of the year, third and fourth quarter, deposits have traditionally grown. We do have some programs that we're rolling out that we're starting to see some really nice traction there as it relates to deposits, and expect them to grow pretty nicely over the next couple quarters.

Once again, if you look at our history, we've seen really strong deposit growth in the third and fourth quarter, and we are rolling out special programs in the retail and commercial space to attract more deposits. As Dan mentioned, we do feel like kind of our deposit costs are near the bottom, we don't see them really going any lower, but do feel like the growth will be there in the third and fourth quarter.

I think historically, if you look over the last three years, we've been able to grow deposits by $600-$700 million in the back half of the year, and kind of anticipating something similar to that.

Got it. Then just one follow-up.

Did see the slide deck, a little bit of an uptick in classified, criticized loans, maybe some color what drove the increase there. Thanks.

Sure. Kind of like last year, we did some regrading on credits again, and some of it was timing as well.

For instance, today we're already down 11 basis points to 3.61%, and we feel like it's really just timing and I would expect by the end of the third quarter it should be down in the low 3s. Also, just go ahead and address the three NPLs that we added last quarter.

We do have solutions for those and feel like there's a great probability that all three will be resolved this quarter, if not early fourth quarter, but once again, we're well reserved there, do not see any sort of impact to us as we get those three NPLs resolved, which we hopefully will get them done this quarter. C&C is just a timing thing.

As I mentioned before, it's already come down some since the end of the quarter.

Great. Appreciate the color.

Hey, good morning, guys.

Hey, good morning, Russell.

Morning.

Morning. I wanted to follow up on the margin discussion, sort of that 3.60%-ish potential plus exit rate for the year.

Dan, it still sounds like there's a decent repricing story here and room to flex the 90% loan-to-deposit ratio higher. As we kind of look to the end of this year and into next, is that the point where we start trading NII dollars for margin expansion and see that NIM kind of flip lower, or based on where you're bringing on this loan growth today, would you expect to be able to really defend that 3.60% NIM with whatever rate assumptions you guys have?

Russell, I would say today we believe we can defend that 3.60% NIM. If you think about kind of asset repricing, we do have securities cash flows, very similar to last quarter, kicking off about $250 million a quarter and projected out for the next four quarters at least to be about $250 million per quarter.

That's repricing at three from 3.30% up to right around 5.10% is where we're investing. We're picking up about 180 basis points on the reinvestment on securities.

Then on the loans as well, we've got $3.3 billion in fixed-rate commercial loans, weighted average is 5.01%. Of that, about $450 million of that fixed-rate commercial matures over the next 12 months at a weighted average rate of just 4.17%.

There's a lot of opportunity there, almost 200 basis points, I would say, of repricing opportunity there. Those are certainly tailwinds.

Then, whenever we think about the funding mix and the loan growth expectations that we've modeled, we have as Jeff said, kind of the deposit funding at this point we think we've hit the floor, and at this point, given the amount of loan growth, we think we may be mixing in a little bit of wholesale borrowings in the back half of the year as well to help fund some of that loan growth temporarily. I think that's where the asset repricing probably is a little offset with maybe slightly higher funding costs such that you kind of maintain that 3.60%.

Once you get into the kind of 2027, which we're not going to get too detailed there, but we do have one rate hike right now projected in the back half in December of '26, and we do think that there's some opportunity to boost margin, a couple basis points off of that. Then certainly, what I would say, the caveat that always exists is to the extent that we can grow deposits at a faster rate and at a lower cost than what we're modeling, that certainly provides a lot of tailwind to margin.

Likewise, if we don't grow deposits at the pace that we model, that would provide a little bit of headwind to margin. Right now, we're modeling that 3.60%.

Very good. Thank you, Dan, helpful.

Then just for my follow-up switching gears on the loan growth discussion, have some visibility into paydowns easing, record pipelines. Any reason to think this kind of high-single-digit result this quarter would not carry into the back half of next year and really potentially pick up as we think about '27?

If I could sneak in just a request for an update on the healthcare vertical, that would be great. Thank you.

No, I think that's definitely possible for sure. If you look at what South Florida is doing, what the healthcare vertical's doing, what our other expansion markets are doing, and then just our existing footprint, I totally believe that it is possible to get that higher single-digit loan growth.

We could see it this quarter, depends on payoffs once again. I would just call out the South Florida team along with healthcare, in Florida now we're basically $200 million in loans outstanding.

That's how quickly we've been able to gather business and bring over total relationships to our bank. Healthcare is still on a tear.

They're doing a really great job. We continue to see strong growth with healthcare.

I would think it would continue through the back half of the year and will be a very, very big driver for our loan growth as we move forward. The one other thing I just want to point out, as you mentioned in deposits, we've closed 37 branches this year, and then in the second quarter, we also ran off $50 million in brokered deposits.

Basically flat for the year with 37 branches being closed, I think is a really big win for us when you look at how much potential run-off we had modeled.

Thanks, guys, for taking my questions.

Thanks, Russell.

Thanks, good morning. Just thinking about expenses into next year, part of what has helped you fund your investment in some higher growth markets has been the branch closures that you had last year.

Do you have the ability to do any more of that into '27? Just trying to kind of think about the balance between new investments and then the cost savings that we've got at your fingertips.

Thanks.

Thanks, Catherine. Yes, we are working on Phase 3 right now on the branch optimization, and do believe that we have some more room to do some branch optimization cuts.

Probably look at rolling that out maybe in fourth quarter. Once again, we're still working on the plan.

I think you would see some two-for-ones, three-for-ones, repositioning on that. Yes, we do see that as a potential opportunity to cut some costs toward the back half of this year, rolling into 2027, for sure.

Great. Then on the buyback, can you just talk about just your philosophy or how you're thinking about how active you'll be in this new buyback authorization relative to when loan growth is accelerating?

Just kind of think about how we balance the two, and even at this level of higher growth, would you still think you can exercise on this entire authorization? Thanks.

Great question, Catherine. I'll take that one.

I would say given our loan growth that we're modeling here over the next couple of quarters, we really don't see a whole lot of buyback over the next couple of quarters. Think about, we're kind of going to plan to deploy that excess capital into that loan growth, effectively compounding our returns.

Based on that, we kind of model a CET1 ratio of about 10.7% to be fairly consistent over the next couple of quarters, and that's absent buyback. That puts us right in kind of the midpoint of kind of the range that we've talked about on capital CET1 range from 10.5% to 11%.

Now that being said, certainly, to the extent that we don't see the loan growth that we're anticipating, that could open up the window sooner than later to buy back. Certainly, we will definitely be opportunistic or have an opportunistic kind of buy if we see a downturn in the market.

Of course, we saw that here a little bit this quarter, and took advantage of that, repurchasing about 300,000 shares at just $33.55 on a weighted average basis compared to, we've now eclipsed $40 per share. Feel good about that.

Generally speaking, at least in the next couple of quarters, I think buyback will be pretty muted just because we've got such opportunity to grow loans and the returns there are just better.

Is there a growth rate at which you think is your target, like if you're below a certain level, that's when you would push into the buyback?

I think it comes down to, like I said, we're kind of managing the buyback relative to that CET1 ratio. Like I said, but we're accreting capital very quickly, but we plan to deploy that capital back into the loan growth.

To the extent that we don't see the loan growth maintaining at that 10.7%, say CET1, and we start to see that tick upward to 10.8%, 10.9%, 11%, 11.1%, that's when we really start pulling the trigger, I think, on buyback. It's also again kind of dependent on stock prices as well.

We have certain hurdle rates that we want to achieve there as well. One other thing, while we're on the subject of capital, I just kind of mention, we're talking the incredible accretion of capital that we're enjoying right now.

We are kind of modeling that tangible book value per share to continue to improve about 70 to 80 cents per quarter off of that roughly $23 a share today. We saw 50 cents pick up this quarter, and of course, some of that was impacted by the buyback.

We're modeling that 70 to 80 cents per quarter. That's about a 12% return on TBV, and if you think about the current multiple that we trade at today, 1.8 times TBV, and we're growing, say 70 cents per quarter, that's about a $1.25 in, I'll say, theoretical stock price appreciation per quarter.

Again, theoretically, that's about $5 in stock price appreciation over the course of a year. We do feel really good about the capital accretion that we have projected and modeled, and feel great about how that can translate into stock prices as well.

Very helpful. Thank you.

Thank you. Good morning, Jeff.

Morning, Dan. Most of my questions have been asked and answered at this point, but obviously, the Florida buildout is a big part of the story for you guys right now.

Curious, you mentioned the Naples LPO, and then the coming Fort Lauderdale and Palm Beach businesses. Are you close to filling out that footprint in terms of South Florida of where you want to be?

If not, where do you think you want to go, and you talked about $2 billion, is that kind of current footprint that you've talked about, or does that contemplate additional expansion?

Hey, Danny. Yes, we feel like right now we've kind of built out what we need, and the $2 billion would be the current footprint.

Would we potentially look at some city north next year at some point? Yes, but right now, we've kind of got South Florida built out for the most part.

That doesn't mean we wouldn't hire one or two here or there, and we do believe that could be a $2 billion bank in the next couple of years, for sure. As I mentioned, they're up to $200 million in loans already, and they haven't even been here but 90 days fully functioning, the opportunities are just amazing.

They represent, I believe, 10% of our current pipeline with a lot of other stuff behind it. I think eventually, we would continue to expand north maybe in 2027 with looking at a Tampa, Orlando, Sarasota, Jacksonville.

We don't have anything really picked out at this point, we want to see this investment build up the assets, which we know they will, and then in the future we may look to expand that further.

Okay. Understanding that that wouldn't be in any kind of commentary around expenses right now, but the $153 million that you talked about, Dan, for the back half of the year, that I'm sure incorporates the recent hirings.

Does that incorporate kind of any of the kind of initial costs on the Fort Lauderdale and Palm Beach hirings? If not, how should we think about maybe the '27 anticipated path of expense growth?

Danny, I would tell you that the $153 million for third quarter does contemplate the South Florida expansion for sure. Part of that increase, if you think, and I said it in my prepared comments, kind of you've got three factors that are driving that expense growth from $148 million up to $153 million from second quarter to third quarter.

That's mid-year merit increases, which are worth about a million-five, and then you've got a full quarter's worth, I would say, of kind of salaries and wages related to the expansion efforts in the South, and then a pretty sizable increase in marketing expense, anticipating about $5 million in each the third quarter and the fourth quarter in marketing, so that'd be up almost $3 million over the second quarter compared to third quarter. Certainly that's all baked in.

I think probably the story that's undersold somewhat is just the fact how we've been able to manage our expenses throughout the year. The run rate today in our expansion efforts is about $3 million.

We're anticipating that to be around $4 million per quarter, kind of beginning or going forward through the third quarter and beyond, and you really don't see that much in the expense growth rate. A lot of that comes from the optimization efforts that we've performed with branches and etc.

We're really proud of our ability to be able to kind of significantly enhance our revenue growth opportunity while managing our expenses at a reasonable growth rate. The only thing I would add for fourth quarter, we do expect that to be pretty flat to third quarter, but there could be some, I would say, minor tech spend that would be placed in the service typically, some of the tech and equipment gets placed into service in the back half of the year, kind of midway through third quarter.

There could be a little bit of additional expense there. Certainly, we've got some branch openings that would be kind of taking place, and then maybe some residual revenue-producing hires, but generally speaking, pretty flat to third quarter.

Understood. Thanks for all the color, Dan.

I'll step back. Appreciate it.

Hey, good morning, guys.

Hey, good morning, Karl. Morning, Karl.

A few quick follow-ups, I guess. I think last quarter you teased a Nashville LPO.

Any update on that?

Sure, Karl. We have hired some people in Nashville toward the middle of last quarter, and those people, by the way, are all in the run rate of the 153, just to be clear.

They're just getting started, and we've been in Nashville for a while, but we have a now stronger presence there with a group of people we've hired, and feel like they're just getting started. They're building their pipeline, which I believe is about $150 million at this point.

Should see some good, strong contributions from Nashville in third quarter and fourth quarter.

Okay. Then, I guess, Jeff, I think you guys have a lot going on and a lot of opportunity ahead of you from the new offices in Florida.

Has the bar to pursue a new LPO or hire people into the franchise gone up a little bit? Are you happy with what you have today, or do you think you want to be more aggressive in the next couple of quarters as there's some dislocation across some of the markets?

I think we've done a lot of expansion, a lot of LPOs, and yes, the bar has definitely gone up tremendously from what we're seeing in these new LPOs. The opportunities are very abundant.

Once again, I don't really see us doing any more expansion. I think we want to make sure that these investments pay off, and they are, and they're driving really strong loan growth, fee growth, and deposits.

For us, I don't really see any more expansions in the back half of this year. Once again, at some point next year, we would probably look at some other part of Florida, but yes, it's got to be very, very meaningful, driving a very strong return, which once again these new ones are going to do that.

Yes, I would agree with your conclusion that the bar has been raised. We're always out talking to people, but I feel like we're in great markets at this point.

Okay. Then one last one for me.

I think in the script you mentioned an upward swing in payoffs late in the quarter. Is there anything to call out from that, or is that strictly timing and doesn't really change your thinking on any of the payoffs tapering?

No, it doesn't change any of my thinking at all. We're continuing to see the payoffs.

We do believe, feel like I said this last quarter, but we do believe third quarter will be slightly less than second quarter, maybe a third less than second quarter. Once again, with our pipeline being at all-time highs, $2.3 billion, and 30% of that is from LPOs, we feel like we will grow through any sort of potential payoffs.

It's been the same story. It's CRE refinances, restructurings.

Some of them have been C&C credits we've been able to get off. I think it continues in the third quarter, hopefully it's a little bit less.

As we move toward the fourth quarter, we think it should be less than that, but we'll have to wait and see. I can tell you that our pipelines remain at all-time highs with all the actions we've taken, I would expect very strong loan growth in the third and fourth quarter.

Great. I appreciate all the help and good quarter, guys.

Thank you.

Hey, good morning. With the bar being raised on new LPOs, it seems like a lot of pipeline for future growth in Florida.

Where does capital deployment in M&A stand across your kind of options?

Good morning, Manuel. We're not really looking at M&A at all at this point.

For us, we're seeing great returns, as Dan mentioned, on the tangible book value buildback, also the organic growth that we're going to be seeing over the next couple years. M&A is really at the very bottom.

Once again, we're not pursuing any M&A, really focused on the heavy organic growth, and you're going to see that over the next several quarters. That feels like the best use of our capital at this point.

I appreciate that. Is there any differentiation across your regions on the CRE payoffs?

Is there any place that kind of is driving more of it, or is it pretty spread out?

It's pretty well-diverse. It's pretty spread out throughout our entire footprint.

Once again, it's a lot of going to permanent financing, a lot of sales of property. As we've put on a lot of CRE.

I think at one point we had a very high CRE concentration, that's come down significantly. It's really pretty widespread.

There's not one specific area that we're seeing CRE payoffs in.

I appreciate the discussion of deposit costs are probably hitting a floor. What's kind of the marginal funding for growth across borrowings and maybe new deposits?

Today we would say right around 3%, I would say. That would be assuming higher-tier money markets, interest-bearing coming on around 3.5%, 3.75%, mixed in with about 20%, 25% of NIB.

I appreciate it. Thank you, guys.

Thank you. To wrap up, our year-to-date financial results demonstrate the success of our relationship-focused banking model and disciplined growth strategy.

With solid funding position and strong momentum across our markets, particularly in our expansion markets, Northern Virginia, Tennessee, Florida, we are well positioned for continued growth. 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. Have a great day.