Good afternoon and welcome to WesBanco's Conference Call. My name is Danielle, and I will be your conference facilitator today. Today's call will cover WesBanco's discussion of results and operations for the third quarter ended September 30, 2015. Please be advised, all lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer period. This call is also being recorded. If you object to the recording, please disconnect at any time. Forward-looking statements in this report relating to WesBanco's plans, strategies, objectives, expectations, intentions and adequacy of resources, are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. The information contained in this report should be read in conjunction with WesBanco's Form 10-K for the year ended December 31, 2014, as well as documents subsequently filed by WesBanco with the Securities and Exchange Commission, including WesBanco's Form 10-Q for the quarters ended March 31 and June 30, 2015 which are available at the SEC's website, www.sec.gov or WesBanco's website, www.wesbanco.com. Investors are cautioned that forward-looking statements, which are not historical facts, involve risks and uncertainties, including those detailed in WesBanco's most recent Annual Report on Form 10-K filed with the SEC under Risk Factors in Part I, Item 1A. Such statements are subject to important factors that could cause actual results to differ materially from those contemplated by such statements. WesBanco does not assume any duty to update forward-looking statements. WesBanco's third quarter 2015 earnings release was issued yesterday afternoon and is available at www.wesbanco.com. This call will include about 20 to 25 minutes of prepared commentary followed by a question and answer period which I will facilitate. An archived webcast of this call will be available on the company's website. WesBanco's participants in today's call will be Todd Clossin, President and Chief Executive Officer and Robert H. Young, Executive VP and Chief Financial Officer, and both will be available for questions following opening statements. Mr. Clossin, you may begin your conference.

Thank you, Danielle. Good afternoon, and thank you for participating in WesBanco's third quarter 2015 earnings call. We're pleased you've joined us this morning to hear about our operating results. I’ll be making some opening comments. Bob Young, our CFO will provide financial highlights and I will moderate the question-and-answer period. A press release detailing results of third quarter was issued last evening. A copy of the entire press release is available on our website. Our merger with ESB that was closed in February and converted in April of this year has gone very well. Expense saves were made ahead of pace and employee stimulation has been positive. Our new employees in the Western Pennsylvania area have combined with our existing lending team to now represent one of the most productive regions in our company. We never experienced a slowdown in growth during the merger process and we quickly added additional revenue generating staff to capitalize upon the benefits of our new found top 10 size in the market. We achieved fully diluted earnings per share of $0.58 for the third quarter of this year as compared to $0.56 for the second quarter of this year and $0.62 for the third quarter of last year. Our continued focus upon return investment once again drilled positive operating leverage for the quarter. These results allowed us to post a strong efficiency ratio of 57.6% for the quarter as compared to 58.5% posted during the same quarter of last year. One of the better efficiency ratios in the industry. Our loan growth is I have referenced on previous calls is best determined by averaging several quarters together as plan construction pay offs can move the numbers around significantly from quarter-to-quarter. We are pleased with our year-to-date loan production of 1.3 billion as compared…

Thank you, Todd. For the third quarter net income exclusive of merger related expenses was $22.4 million or $0.58 per share versus $18.1 million or $0.62 last year. Year-to-date net income on the same basis was $64.9 million or $1.75 per share versus $53.5 million or 182 per share last year. Core operating earnings were up 23.1% for the quarter and 21.5% year-to-date. Merger related expenses for the nine months period on an after-tax basis was $7.2 million or $0.20 per share and less than $0.2 million for the quarter. Third quarter GAAP net income was $22.2 million or $0.58 per share while year-to-date it was $57.8 million or $1.55 per share. On a year-to-date basis core return average assets was 1.09% versus 1.15% last year and core return on tangible common equity was 14.2% compared to 15.97% last year similar to peer ratios. Pre-tax pre-provision return on average assets on a core basis was 1.69% year-to-date versus 1.76% last year. Turning to the balance sheet and net interest income now. Net interest income grew $12.0 million or 24.8% for the quarter and $32.1 million or 22.3% year-to-date with the acquisition. Organic loan growth and a reduced cost of funds percentage over the past year the primary reasons for the increase. The third quarter net interest margin decreased 22 basis points to 3.36% and it was down 18 basis points year-to-date to 3.44%. While the margin was influenced positively by purchase accounting accretion from the mark-to-market of financial assets and liabilities of 10 basis points for the quarter and 10 basis points also year-to-date, it was down overall due to a higher percentage of investments to total earning assets from the acquisition and lower market yields on the portfolio, as well as on loans. Market rates were down significantly between…

[Operator Instructions] The first question comes from Catherine Mealor from KBW. Please go ahead.

Hi good afternoon everyone. Just first on growth. Had a question, maybe thinking forward. I know the commercial real estate pay-offs are going to move the growth rate around quarter to quarter, but you did a lot of hiring this year, and so how should we think about just what you're expecting the core loan growth rate should be, going into next year, outside of any more of these large paydowns?

Yes, the third quarter was really pretty extraordinary on both the production side and the pay-off – from the large commercial real estate loans that went to secondary market, pretty unusual. I would tell you, what you’ll see going forward is a continuation of what you've seen over the last couple of years and that is mid single digit but there is a lot of mix going in underneath that. As you guys know, we are trying to build the C&I book, that's why we did some of the hires we did and we’re thankful to see some of the production coming from that. I know at some point in time rates are going to rise. At some point in time some of the commercial real estate construction projects won’t be as economically feasible. That market will slow or will slow because markets stretch a little bit and when that starts to come down, I want to make sure that we could still show really good loan growth through other initiatives whether it be C&I or the consumer home equity loans, those types of things will start to show through. So, we are looking for a more stable loan growth that kind of gets away from the quarter-to-quarter gyrations you see with the construction projects. But net of all of that, I'd expect to see a continued growth in the C&I and home equity portfolio. It’s like you’ve seen from us over the last year low to mid single digit growth in the commercial real estate side netting out to mid single digit.

And how is that mix shift into C&I and HELOC portfolio impacting the yield on your loan book, is that what make shift, the primary driver would you say in the quarter-over-quarter compression into loan yield?

Catherine, the loans are primarily decreasing on the commercial side because of re-pricing of existing three and five year loans. In other words the initial term and they are then re-priced of an index to either LIBOR or the Treasury CMT. So given how low rates are today, those rates are re-pricing but those loans are re-pricing very low. We are also finding competition for new quality credits is resulting in lower initial spreads. We do to try to maintain floors on our loans. We've done nicely on the home equity side for the last year and a half with our new products, that does come at a slight cost. We do have some customer, as well as employee incentives for that program and that has resulted in a slight reduction in the home equity line in terms of margin. So, I think that to some degrees goes your question on mix shift because certainly in the third quarter, most of our growth was in the categories of home equity lines and residential mortgages. There also was a noise around the acquisition as we lined up various loan categories from ESB and moved them around on our balance sheet in any particular quarter that might have been some adjustments related to moving those loans from category to category. So, we tend to focus on the bottom line relative to loan yields over the past two quarters particularly, Catherine.

Just to add on that the C&I business tends to come with a lot more fee income - non credit income TMPs or things like that with a real estate business tends to come with more upfront type of fees associated with that. With the yield on the two products, they are not that different within a quarter percentage or so whether you’re doing a construction loan, whether you’re doing a good quality C&I loan. So, overtime I think that yields will be similar and we’re not seeing slow down on the construction side at all. It’s continuing to run very strong and while we are anticipating at some point that will soften as rates go up or as we decided to pull out of maybe some hires for concentration issues. We’re not seeing a slowdown in construction good, high quality construction projects are still plentiful, we’re looking them, we are underwriting them and we’re doing them and that is building lot of powder for the future so to speak as those fund up over the next couple of years. Those are also end markets. We don’t buy out of market loans. So I would make that comment. The other comment on the real estate loans is that we have been putting more of those on the balance sheet over the last couple of years and we will delve that back going forward to more gain on sale activity.

That was very helpful. I will hop out and let someone else up in the queue. Thanks.

Thank you.

The next question comes from Bob Ramsey of FBR. Please go ahead.

Hi good afternoon guys. Bob, I was hoping you could talk a little bit more about the net interest margin trajectory and I think I heard you to say that there's about 10 basis points of benefit from purchase accounting accretion. I just wanted to know if any of that is accelerated accretion, or whether it's core run rate accretion? And from this level of 336, how you are thinking about the margin pressure in the fourth quarter?

Well specifically on the issue of - around the question of add-on purchase accounting accretion, it was a good note that in my script that was 10 basis points in the quarter, 10 basis points year-to-date, it was 11 basis points for instance in this second quarter. That compares to four basis points in the third quarter last year. That will drift away if you will a couple of basis points a quarter between now and the third or fourth quarter of next year as some of the accretion related to CDs and borrowings goes away quicker than the accretion in non-impaired loans in the loan book for instance. So I would dial that back at a couple of basis points a quarter Bob when it comes to purchase accounting. Cost of funds has been relatively flat, the last three to four quarters now. I don’t know whether Todd mentioned it or I did in the press release we talked about extending some borrowings there is an extra basis point of cost in terms of total interest bearing liabilities this quarter and extending some of the shorter term borrowings that we had acquired either from ESB or shortly after ESB as we were refunding the portfolio purchases on the asset side. So, we think that is protective of the margin going forward no matter where or when interest rates go up and in fact our asset sensitivity do through that change this quarter which did cost us a little bit in margin as we point out. That changed our asset sensitivity in up 200 from 2.1% at the end of December to 2.7% at the end of September. So that's a bit of a protective strategy even if we don’t think rates are going to go up until sometime in the second quarter. Bottom line, it seems to me as though by the end of the quarter looking at the monthly run rates during the quarter that we had to plan settled in at mid-330, high 330s kind of number, and I think at this point that's about as much as I would say. In our most likely environment with loan growth and the shifting of assets on the asset side, that should help us as well in terms of future margin.

Okay. So it sounds like we’re relatively stable with maybe a little bit of drag from the rate environment and losing base of 22 at the purchase accounting?

Yes I think the final point - not sure if Todd made this but I would suggest that at least one we are looking at today we don’t expect the same level of payoffs in the commercial side in the fourth quarter. Maybe a little bit more visibility of the current pipeline which continues to be at a very nice - indicative of a nice growth rate. We also - Todd pointed out the construction loan financing. We should see some of those balances ramp up here in the fourth quarter. So we talked about the lumpiness in terms of quarter-over-quarter loan growth rate Catherine mentioned that, that's an add on to what I said about most likely and is asset shift between investments and loans and we do hope to get more visibility on that with more of the current production falling to the bottom line.

Great. And then shifting gears – just a small question but the other expense lines seem to pick up this quarter. Is it just normal quarterly volatility or is there anything unusual on that other line that sort of drove for quarter-to-quarter increase.

Yes, Bob actually we're couple of things and you can decide whether you think of this as core and not core. We had a contract termination expense for a deposit product, the fee contract of couple hundred thousand. We had – I mentioned the customer fraud in my remarks that was about $300,000. We also saw some extra cost just associated with ESB and working there activities and primarily in the post supplies category as we were ramping up marketing campaigns in that market. And so all of those affected the other operating expense category. It wasn’t in our real expenses it was basically those two or three categories.

Okay, great. Thank you for taking the questions.

The next question comes from William Wallace of Raymond James. Please go ahead.

Hi, how you guys doing? Probably beating a dead horse at this point but I just wanted -

We’re not dead yet Wally.

I'm just trying to figure out the margin, because what you're saying, I'm just struggling to see how we can stabilize on NIM, just given what we're seeing in the loan yield specifically. So maybe, I'm just wondering, the loan yields of the loans that paid off unexpectedly in the quarter, do you know what the yield on those loans are in the quarter on the average yield?

I don’t think the yields on those would be any different than the portfolio of business loans in general which is about 420. They're not paying off because of our rate structure, they're paying off because they’re selling the property or they’re going into the secondary market given today’s low cap rates, taking advantage of the market while they can.

Okay. I guess I'm struggling to see where if loan yields go from 428 in the second quarter to 417 in the third quarter, how they can stabilize that quickly. Is it just purely a function of the lens that you anticipate putting on in the fourth quarter are going to shift the mix within the portfolio, enough to stabilize the yields?

The later factor as I just said to Mr. Ramsey I think does have an influence on us going forward. That is where we expect to get a few basis points of margin compression enough to offset the run down in purchase accounting accretion is from that growth that mid single digit growth which you didn’t see as much off in this third quarter because of the payoffs offsetting the growth and outstanding from new originations. So I can understand your point, you’ll have to make a decision as to whether you - you think that as a reasonable strategy, we think it is. And as Todd has said in the past, there will be lumpiness quarter-to-quarter depending upon what some of those commercial real estate or construction deals that have completed now have been stabilized when they go to the secondary market. I think when rates rise a little bit, you’ll see less of that happening, people who keep hold on to those deals longer and won’t be so quick to go to the secondary market with them.

Okay. That's a good segue to the next part of my question, which is you mentioned and I think when you were answering Catherine's question, that you do have a significant portion of loans that are on floors, and I don't know how much of the portfolio is variable that's not on floors, or that's above the floors. But if the Fed only raises 25 basis points in the second quarter and then maybe another 25 or 50 over the course of the back half of the year, how much will that impact you?

Well I can tell you that in a rate ramp environment of 200 basis points, you are looking at very similar increase to a 100 basis point shock environment. So that's about 2% - 2.2% so that probably a more logical way to look at it. We also twist and shift the curve, we bring that curve up in the low part and then keep it where it is today and the upper parts of that in fact results in compression for some of your intermediate assets. So we look at it in number of different ways. But at the end of the day, you have to look at multiple pieces the balance sheet you just can’t horn in on loans or one category of deposits. What we are saying overall is, net-net we’re asset sensitive. Yes, we do have floor on over 600 million of loans, we’ve disclosed that in prior 10-Qs and those won't go up as much in the first 100 basis points but there are other elements both the asset and liability mix that help to offset that.

Thank you, Bob, and last question maybe just moving over to expenses. You mentioned that you're ahead of schedule on your ESB cost saves, but that you're investing more, not only in just production, but in back office, as it relates to approaching the $10 billion threshold. How should we think about what cost saves are left, and how much of that might be offset by continued investments in the back office, taking production staff out of the equation?

We have modeled around 50% or so in terms of salary saves, obviously a lot of those came up front with the merger and the thought was the rest of them would occur overtime through the middle of next summer, most of those occurring through retirements and areas like that their branches are staffed more heaving than ours. So that's we have done in prior mergers and this one as well. So we feel we'd be where we need to be on the expense side by next summer. We’re running ahead of pace with regard to that rate now. What we’re doing on the hiring of additional revenue producing talent is very much in line with the strategy of gong to that market, becoming top 10, we did a lift out we mentioned earlier, lift out at previous call. We lift up of the group of lenders up in the Pittsburgh area that has now turned not to be one of our most productive. There really was not in commercial lending, - tremendous commercial lending function up there. We had one, we added two as a result of the merger so again synergies are additive when you start doing things like that. But on a overall basis across our whole franchise, we have been to do is take resources that we’re in lower productivity areas. People would retire, move-on and replace those individuals in more productive markets like a Cincinnati, Columbus, Pittsburgh, Charleston, some of the bigger cities. We still have good coverage in some of our other legacy markets but we did, we are opportunistic in self funding a number of hires that we did, not all of them but a number of the hires. So this has been the plan for the last year and half. It's been…

Okay. So maybe try in another way, in the current interest rate environment, we’d expect to see the efficiency ratio remain flattish. Is that fair?

I would say, I think the range that we’ve been in the last few years will be the range we would expect to be in.

I think the 36% to 38% area where we are is a good target. I gave a couple of questioners some guidance in terms of unusual items for the quarter that wouldn’t be reparative in the fourth quarter. So, that is much as I would say but I think the direction overall of non-interest expense is reflective of most of the cost savings and there will be little quarter-over-quarter bumpiness depending upon this accrual or that particular loss.

Thanks guys. I appreciate your time.

[Operator Instructions] Your next question comes from John Moran from Macquarie Capital. Please go ahead.

Just a quick one on fees. Trust looked like it ran soft again this quarter, and I know 2Q versus 1Q suffers from some tough seasonal comps, but anything going on, on that line this quarter?

Just choppiness in the market. Obviously, we had a lot of volatility going on in the marketplace. I look at our net accounts, the new accounts opening versus the trust accounts that close from - obviously people pass in the way and that’s the part of that business. And net-net we’re growing, - we’re growing market share. But we are going to get a lot of volatility in the third quarter obviously impacted that number and I looked at my own portfolio, so I know that’s impacting everybody else to.

Got it. So just more general market volatility versus anything shale related or anything, still seeing good opportunities?

It is just market value based and this would give us when we target the fees against what the market value of the portfolio is and that will move around from quarter-to-quarter.

Okay, all right. And then the other one that I have, just obviously it looks like originations are good, pipeline strong, but any slowdown or sort of ripple that you're seeing run through any portion of the footprint, just given that a lot of it is kind of sitting in Marcellus territory, or color that you might be able to give us, in terms of general economic indicators?

We watch it closely. We talked to lot of our customers as we said on prior calls, we don’t lend to the big oil and gas drillers less than 1% of our portfolio. What we're really doing as looking at credit metrics overall for our customer and we’re not seeing any changes in the credit metrics overall. There are a few customers who are watching that are in businesses that related to that and there is some impact but nothing that would be deemed a credit issue, we tend to deal with stronger individuals who are kind of weathering the storm. But we are seeing the impact but not anything that will impact our credit metrics or anything like that. There is still an awful lot of pipeline activity work going on around here. Still a lot of trucks going around. Still hard to get into the restaurants, still hard to get a place to stay for short term housing for people we bring into town. So a lot of the pipeline work is being done while the gas sits in the ground, I think is a lot of what’s going on. The existing wells that have been drilled and didn’t ask this question but I’ll answer anyway, we are still seeing eight figure deposit flows on a monthly basis coming into the bank on a footprint really just from the royalty payments that are being paid through our customer in oil and gas companies. So we are continuing to see really nice flow of deposits into the bank and that hasn’t moved much in the last year, year and half, still holding very, very consistent even with these lower prices as a results of the fact what was being produced is still being produced. If not growing to 20 or 25 million a month like I think it would have, if gas prices had stayed up but its holding pretty steady right now.

Got it. Thanks very much for taking the questions.

[Operator Instructions] This concludes our question-and-answer session. I'd now like to turn the conference back over to Mr. Clossin for any closing remarks.

Great, thanks. Thank you, Danielle. I appreciate your time this afternoon. I know you guys are busy, a lot of calls here in the last couple of days, next couple of days but thank you for your time and thank you for your questions.

The conference is now concluded. Thank you for attending today’s presentation. You may now disconnect.