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    Karl Shepard • RBC Capital Markets

    Karl Shepard's questions to First Commonwealth Financial Corp (FCF) leadership

    Karl Shepard's questions to First Commonwealth Financial Corp (FCF) leadership • Q2 2025

    Question

    Karl Shepard from RBC Capital Markets asked for an update on loan replacement yield trends into July and questioned the company's current M&A priorities and strategy.

    Answer

    CFO James Reske stated that the positive loan replacement yield spread (42 bps in Q2) should persist as long as the Fed does not cut rates, highlighting that fixed-rate loan repricing was a significant driver at 115 bps positive. CEO Thomas Michael Price added that commercial fixed and indirect installment loans were key contributors. On M&A, Price reiterated a disciplined approach, favoring smaller, low-risk deals in existing markets where the company can leverage its business verticals and ensure deposit growth keeps pace with loan growth.

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    Karl Shepard's questions to First Commonwealth Financial Corp (FCF) leadership • Q1 2025

    Question

    Karl Shepard sought further detail on the deposit cost assumptions within the NIM guidance, suggesting they appeared conservative. He also asked about the outlook for FTE headcount growth and other potential expense pressures for the remainder of the year.

    Answer

    CFO James Reske acknowledged the deposit cost assumption is conservative, noting that macro swaps account for about half the guided NIM expansion, with the rest from asset repricing. He indicated the assumption would be revisited. President and CEO Thomas Michael Price explained the FTE increase was a strategic investment in the commercial banking team and filling vacancies, but added that the company will look closely at controlling costs in Q2.

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    Karl Shepard's questions to First Commonwealth Financial Corp (FCF) leadership • Q4 2024

    Question

    Karl Shepard inquired about the drivers of the projected 2025 net interest margin (NIM) expansion beyond the impact of swaps, and asked about the strategic rationale and key attractions of the Center Bank acquisition.

    Answer

    CFO James Reske explained that about half the NIM expansion comes from swaps, with the remainder driven by positive asset repricing. He noted the forecast is conservative on deposit cost reductions but projects the overall loan portfolio yield will increase by about 25 basis points due to positive replacement yields. President and CEO Thomas Michael Price detailed his long-standing relationship with Center Bank's leadership and highlighted the deal's strategic fit, stating it complements their existing Cincinnati presence and accelerates growth plans in that key market by 'half a decade'.

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    Karl Shepard's questions to First Commonwealth Financial Corp (FCF) leadership • Q3 2024

    Question

    Karl Shepard asked about the expected loss content from the two legacy credits with new reserves, the timeline for the Centric portfolio's credit metrics to converge with the core bank, and the drivers of confidence in a reacceleration of loan growth.

    Answer

    An executive, likely Chief Credit Officer Brian Taake, indicated that short-term charge-offs would be driven by existing specific reserves with minimal further provisioning expected. President and CEO Mike Price and the executive noted that Centric's criticized loans are decreasing and the credit headwind should dissipate in 2025. Mr. Price attributed loan growth confidence to strong production, new talent, and ample liquidity.

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    Karl Shepard's questions to WesBanco Inc (WSBC) leadership

    Karl Shepard's questions to WesBanco Inc (WSBC) leadership • Q2 2025

    Question

    Karl Shepard from RBC Capital Markets sought clarity on the sustainable level of purchase accounting accretion into 2026 and asked about the next steps for the Premier integration now that systems are converted.

    Answer

    Senior EVP & CFO Daniel Weiss projected that purchase accounting accretion would drop to the high 20s basis points in Q3, mid-20s in Q4, and then decline by approximately one basis point per quarter thereafter. President and CEO Jeffrey Jackson stated that with the smooth systems conversion complete, the focus is now entirely on driving growth, cross-selling products, and fully integrating the new Premier associates into WesBanco's culture and processes.

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    Karl Shepard's questions to WesBanco Inc (WSBC) leadership • Q1 2025

    Question

    Karl Shepard inquired about the bank's capital adequacy for organic growth, its current CRE concentration levels, and the strategic opportunities presented by its newly enlarged balance sheet. He also asked if the pro forma EPS of $3.59 from the merger presentation was still achievable.

    Answer

    Daniel Weiss, Senior Executive Vice President and CFO, affirmed that capital is sufficient for organic growth and reported the CRE concentration at approximately 298% of risk-based capital at the bank level, which is below regulatory guidelines. Jeffrey Jackson, President and CEO, noted the larger balance sheet enables larger loans to key clients and the exploration of new business lines. Weiss concluded that the $3.59 pro forma EPS, excluding merger costs, should be 'within range' based on current guidance.

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    Karl Shepard's questions to WesBanco Inc (WSBC) leadership • Q4 2024

    Question

    Karl Shepard inquired about the outlook for deposit growth for the full year 2025 and the expected evolution of the deposit mix, particularly the concentration of certificate of deposits (CDs).

    Answer

    CFO Daniel Weiss stated that the bank's primary assumption is that deposit growth will fully fund its mid-to-upper single-digit loan growth target for the year. He also anticipates that the deposit mix in 2025 will see less concentration in CD growth compared to 2024, with a more balanced profile across deposit categories.

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    Karl Shepard's questions to WesBanco Inc (WSBC) leadership • Q3 2024

    Question

    Karl Shepard inquired about the drivers of management's optimism for continued loan growth outperformance into next year. He also asked about the balance sheet's sensitivity to different rate cut scenarios and if any balance sheet adjustments were planned ahead of the Premier Financial closing.

    Answer

    CEO Jeffrey Jackson expressed strong optimism for future loan growth, citing talent management, LPO success, and a favorable rate environment. CFO Daniel Weiss noted the balance sheet is largely neutral to the size of short-term rate cuts. Weiss also stated there are no specific balance sheet actions planned before the deal closes but mentioned potential post-close restructuring opportunities.

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