CIVB - Earnings call 3 2023 | Civista Bancshares, Inc.

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Operator

[Audio Gap]Before we begin, I would like to remind you that this conference call may contain forward-looking statements with respect to the future performance and financial condition of Civista Bancshares, Inc. that involve risks and uncertainties. Various factors could cause actual results to be materially different from any future results expressed or implied by such forward-looking statements. These factors are discussed in the company's SEC filings, which are available on the company's website. The company disclaims any obligation to update any forward-looking statements made during the call.Additionally, management may refer to non-GAAP measures, which are intended to supplement, but not substitute the most directly comparable GAAP measures. the available quantitative company's today, information as reconciliation also financial contains as release, measures. a other non-GAAP and to of press on website, the the well The to GAAP be discussed This call available Bancshares' at website and on Civista www.civb.com. be will recorded made the Mr. At conclusion of will remarks Shaffer's team he that questions the and any today, you management Civista take may have.

the call Shaffer. over Mr. turn to will I Now

Dennis Shaffer

And Officer income for like from Rich morning joining XX, joined the CEO our of a million months for and This of or executive for of President XXXX, Civista the team.This to Parcher, of which per our ended is diluted thank of and I and third per increase today of first a Bank; afternoon. quarter you Good third SVP reported the of which the X.X% Bank, company performance. and the over would million us I'm quarter income $XX.X our of Operating share X members September Operating XXXX Dutton, Dennis other Bancshares, call. and Officer company Chief Chuck the Shaffer, X XX.X% earnings we represents SVP by the quarter months share, XXXX's XXXX. of diluted $XX.X net $X.XX or decrease $X.XX represents third for net in Chief

the an our which and at set is was and was quarter of strength growth Our This growth grew loan rate for performance lease organization. quarter markets up I by organic continued strong portfolios, year-to-date of believe year-to-date. our and third in our of indicative XX.X% and and the annualized XX%

previous face led of In pace, the the period year-to-date, higher to and for which quarter anticipate XX% up net at income and continuing of slower anticipate a growth margin compressed, the over translated year quarter, same growth higher-rate the into do for interest year. not earnings, we net record XXXX.This balance our and single-digit prior environment the quarter funding albeit the X.XX% continued a the coming year-to-date. pace into in do in pressures, grow than linked in X.XX% at which at to were at we the pace this for the While

assets X basis points X.XX% Our year-to-date. earning X.XX% quarter yield and increased to on the by during was

an to deposits, However, to sheet in by X.XX% XX the basis to of by year-to-date.During demand during excluding the quarter accounts and rates the costs on points basis some increased of cost quarter tiered quarter, linked basis of was increasing in, funding to quarter. our X.XX%. X.XX% our by and led CDs. our our cost funding select XX brokered our continued increased balance our XX increase points we approach This higher the to X.XX% paid from during All deposit measured points

for an we to by U.S. their has out Government, for our complaints the we experienced stimulus due release, Since our our taxpayers step the the from deposits made began from for increased the I in down $XXX our then, become close amount $X.X looking quarter. linked was were the the During what information business decline were quarter has during say from tax regulators $XXX our million million related we down required typical the quarter of payments the in tax which because the quarter, decline typical of business, earnings which mistakenly stimulus XXXX. XXXX, of refund the to the increased. total volume seasonality complaint noted for in to decision quarter.As Since away deposits, of first to billion each when linked we income we receiving payments. received

view regulators future program it requests, activity. handled might business and before While we research that the that TPG became has the inhibit related these of our away something to to is better it M&A felt it the step partner of become changing brunt our apparent

We help and new of dividend the a payout will revenue replace look to revenue per our our to XX.X% us consistent a prior $X.XX expense on leasing our announced year into This next lost future.Yesterday, this we tighter based division, represents quarterly earnings. with is opportunities, ratio other and dividend and share. quarter controls dividend year-to-date

quarter quarter Our the and the to efficiency for XX.X%, for linked XX.X% compared ratio year-to-date. XX.X% was

The leases XX.X% expense related XX.X%, quarter. tax have comparison quarter we year-to-date.Our would if our in efficiency prior income. out lease the with back the the company, quarter assets residuals to the drivers and generated XX.X% average quarter on However, operating and division. leasing from earned consistent return $X.X from in our comparison year from income program leasing was processing for tax new program, declines to first the is were and to depreciation by linked for fees income ratio been million the and primary residuals, our increase X.XX% XX.X%, second in our for compared the prior linked asset quarter The during linked on on XX.XX%.During quarter. were equity the over or Year-to-date, our to and our our third other years, XX.XX% for at from was million was return equity quarter, income Consistent decrease and return or prior in to for and increased average the the X.XX% XX.XX% our was driver the our on million return revenue our quarter non-interest quarter primary year's declined quarters. was lease our refund $X of quarter, linked $X.X non-interest the with

during on in leasing sale primarily the drivers leasing a gains the and from beginning These end were our in The equipment the debit or new the leasing prior and Year-to-date, until in increased bonus, the income $XXX,XXX other operating at entering that payments in received Civista quarter non-interest generated the term.Also the brand of non-interest Wealth part of this have of a was in by our were of declined of included quarter XX.X% fourth $X.X to with year. quarter the stream income rent and lease payments interim first and lease of linked the to comparison quarter million did revenue the the were made XXXX. revenue XXXX. residual fees year. million prior into for and consistent $X.X addition revenues Management that primary slightly the division in $X.X not agreement million not Our increase division we we in division of year. fees lease prior for year-to-date, are up the compared

of we services a across our will experienced the the as expansion the these we nearly market that or Much prior and anticipate some of continue quarters an every linked we from third of year. view While income.Non-interest uncertainty and increased attributable continue million from to in improvement decline increase of to line our $XX.X non-interest diversify $XX.X Comunibanc represents to non-interest expense XX.X% X.X% XXXX. VFG as footprint quarter for item opportunity quarter of fourth growth our over and in is million, expense non-interest of expense. this time, for the grow Year-to-date, acquisitions

the our additional benefits offices increase to branch our benefit acquisition, do was we end provision to an to million is Depreciation $XXX,XXX unfunded have Equipment an equipment million as compensation lease we new and The expense of increase is losses bad or leasing year-to-date. related on the check Civista of and of the lease normal experienced CECL term. X occupancy from primarily expense year-to-date. increase owed over merit The many division. was due related leases and to a in Comunibanc loan in to depreciation result expense to January.Like credit due attributable a expense increases.While $X.X our was to $X.X $XXX,XXX in increase the and $X.X equipment acquisitions. employees attributable increase is operating adoption bulk The by primarily for increased new last on non-interest salaries, an increase Our of under commissions year. from $X.X a other expense losses million that in the due until was category in of prior this year's operating resulting of in additional in XX.X% depreciated the commitments new million balance industry,

expense for growth loans, balances. and efforts, an banks spreads $XXX,XXX year-to-date by originated leasing $XXX.X our loans division.Turning a represents their opportunity and annualized of million, sheet, the in compensating other expanded leasing increase view grown opportunity. have of million and of includes which leases increased to and loans XX.X%. lending, as by to new also This balance related total our division. increases number our to rate opportunity curtailed require in new A We those number of of experienced Opportunity our which new deposit categories on have our $XX.X markets we lending an to

non-owner we up nearly loan are X.X% real originating not loan significant $XXX.X rate were XXXX. maturities our business for balance We outside with moderate to million all high-rise While XXXX into or the increases lines or leases low-single-digit occupied of are at experienced residential loans are receivables. X-storey adjustable to in our undrawn production, we loan financing located and by estate office office our buildings portfolio. and increases have loan secured predominantly lease make central X-years offices XX. less. Loans and a rather loans, category, CRE, year-to-date are they secured of These virtually The loans districts.Along secured by anticipate every were single growth buildings, of total by all our most loans September construction rate in of

million beginning year. total deposits side, funding the On increased the since of X.X% the or $XXX.X

our with this approximately decline seeing excluding and granular X% industry, is to back we we have what would deposits, compared the However, the customers.Our term our relationships Non-interest fairly we strong bearing as illustrates we excluding of were non-core account with accounts XX. the average related insured if in balances CDs a deposit limits million broker deposits, XX.With what made tax of and believe non-interest year-to-date, and focus, respect commercial an September of program deposit FDIC loans we Civista's our be across deposit or to retail program broker $XXX.X $XX,XXX. to when and deposits out base are deposit own the excess remaining deposits bearing demand were excluding deposits deposits, at to XX.X% tax-related continue total FDIC September at tax XX.X% up the accounts to

Other excluding with million, September than these public concentration refund At to unpledged million loan-to-deposit deposits. covered ratio, and securities in municipalities XXX%. XX, $XXX.X no program, of XX which we XX. our footprint, funds our had than $XXX processing cash across related deposits various was uninsured at September deposits their more were Our at September tax

franchise common ratio of our Despite was X.XX% will and this regulatory deposits unrealized we associated organic remains mentioned, compensating to create is and when be on at broker success balances we declined will our requesting strong price disciplined with X.XX%, our having think customers. maintain advantage overall deposit cost securities And one of growth from we December equity to funding to capital for losses overall our common our is our Civista's as to above purposes.So are potential our strong million I decline, low valuable of as available deposits for had commercial X.X%, puts pressure to take had deemed which As we Tier which sale is all our it them, acquisition. believe September at most ratio goal what $XX.X capital, continue X interest is XXXX. of how compared margin additional quarter tangible and At XX, million end, classified support tangible profitability. we to net sense.We and capital earnings, equity. and XX makes significantly and our in adequate in contributing characteristics, September XX, well-capitalized At to were continue $XXX.X well this

we've stock during We believe program is continue such third repurchase as quarter. value to the resumed and our our of

quarter, an for activity the all share. XX,XXX average price per year-to-date. $XX.XX with of common repurchased stock of shares During our repurchase we've This million, represents of $X.X

$XX authorization program. an have approximately We remaining in million repurchase of our current

which to capital low borrowers associated tangible remains and and attributable recognize our screens quality face, lease was and of balance We growth.Despite credit metrics primarily remain While $XXX,XXX with with and pressures our did and make payment our strong, growth. levels quarter, our loan we credit equity our our stable. ratio the common capital repurchases expense support to dividends will the uncertainties a provision the strong during economy the building remain

September allowance XX, of improved from XXXX and loans for our during losses the at to XX, ratio to first December at growth quarter. Our CECL of X.XX% X.XX% loan reflecting adoption

continued summary, our although remained XXX.XX% addition, and to non-performing loan In compression, generate to XX.In our XXX.XX% for XX, from loans we allowance at margin losses strong increased we margin September experienced XXXX at December strong. to earnings,

during in a quarter, the out we experienced growth anticipate growth slowdown year. we While the finish loan as loan we exceptional organic

we no credit stress seen and our While we deterioration have continue our quality. in examine to material portfolios,

to for may your And which our now increase earnings on focus have. by questions year-over-year address per Our happy will eventually in is be hopefully continues rewarded.Thank you and creating share, value, evidenced you attention be shareholder we'll this that afternoon. to be the any

Operator

[Operator The Nick Cucharale comes with Instructions] first Hovde. question from

Nicholas Cucharale

that to Just pace? that early the to a for growth are loan a Did loan clarify outlook, correctly? slowdown growth you suggesting I XXXX indications in wanted hear are low-single-digit for

Richard Dutton

I'd somewhere loan low that in would seeing, has range, to great. that X%, mid-single-digits. you maybe obviously, growth would I from perspective, ballpark say, We're Yes, know, been say I think. Nick

to slowness see Our right the pipelines are really starting but we're economy. some from strong now,

Dennis Shaffer

it selective, going of high. being have interest put rates, spread, our we get to will us know, our to so think loan-to-deposit know, ratio some bit Nick And you little be because, you we're more is a our I

to we know, you have our us. for spread So those push are and, spreads widening

So we as anticipate slow well. activity lending higher will rate environment that

Nicholas Cucharale

Yes, sense. it makes

Just in results in irregular outperformance the may anything to sense of expenses, where guidance relative and was any that the the there drove out quarter? to to pivot shake fourth the over that

Dennis Shaffer

of know but had quarter end And the employees year. our what in we the we're little they do thought it's be irregular, to what health it what more than I'd don't harder until yes, for insurance. think the not guess, us to if the self-insured And to to I fourth we term we a I us think tend did, healthy, to the the do I going a actuaries close tell actuaries for -- was, were be. I use

the fourth we've So the I the -- the kind Nick, we was in that insurance. was compensation reduced on in guess, backed out. accrual, health decline number big, That quarter, of

a of think, quarter is looks mirror so to want good think last I $XX.X impacted year. heard you lot guys that And we've things for And in pretty do rate told going favorable would it won't that me. go I run got It we first that's the you of pricing I on rate number than insurance, I would tell kind piece would our be a fourth guys of a quarter. they're first on. don't expense I I fourth whole into There's that $XX be we you good raises, a the the quarter. health couple a raises, around, million really use that our different part like probably know some the quarter. that.Again, April, reinsurance to next for million. not base but it, the of

fact, But was are In that had renewal, no thought the things, we which phenomenal. Nick. increase I big of anyway, kind during those

Nicholas Cucharale

sales period see pickup for lease you quarter in and color. us can the that quarter relative quantify so, that help if great to impact? material especially strong expectation business. Is your that's you Yes, And Historically, the during an period? September fourth the the a is fourth leasing revenue

Dennis Shaffer

it yesterday, increase. they like do It just on did to We to in a call Chuck. double September. them We what looked were they're going anticipate with

So --

Richard Dutton

leasing think we and quantification for do get to need production expect output we fourth on in I But the probably quarter. in back a division there number. higher

Nicholas Cucharale

take announcement tax to charge, the you're any do to that be going exiting expect And that. then lastly, Appreciate you given your business?

Dennis Shaffer

that X. years, of the No, X know, incurred, I just goes number just earned, to or quarters that mean, the you first for no the last that I to each I guess, of charge. in be need revenue we

Nicholas Cucharale

the then, it's okay. statement effect income Yes,

Dennis Shaffer

have that replace income. and Yes, to we'll

next think have We've opportunity as into up as that. controls leasing we think, our year. I division, we'll identified, the few think We've I we services. got as we products identified we a existing you know, and move we're you through have, revenue. our have higher know, revenue well within And we've opportunities expense

really any impact working through there, know, looking of but we're still So, make we as well, budget, possible. it an can't kind neutral you we're so as to, the of numbers quantify

Operator

with Terry from The next Stephens. comes question McEvoy

Terence McEvoy

you And uptick to runoff of, the Will to your deposits noticed grow when tax I or still the run business do fees. program? completely in off the on have connected the clear, think do this on What press or million them $X.X of is pretty kind sheet you I that balance short-term here? debt. expect level, comments in as and of release were the income Dennis, FHLB consistent refund be from amount that potentially

Dennis Shaffer

next sticks the Yes, we'll a have the X we'll so. achieve certain you you that Rich, balances maintain have you But know, that There's know, deposits. some over do years X, of those or just there? percentage to around,

Richard Dutton

or sheet exactly the And XX, But I number different. spin on the that was, At I balance they had over just we Terry, lost is don't those via I'm think those right, a for is but next to year, Each for died and to or will down again them And or their say on small I a them little reason most at X-years. know whatever, what number that Yes. the saying don't will for that get I balance check. percentage X our us typically state that's checks, And want if $XX then percentage of part, run our it's September cashed. refund that of for sheet. out $XX.X years. ever I give remain check but might million. beginning of asked be Dennis it's that the folks million whatever mean, And said, close.

Terence McEvoy

there? feel And Any this or did balances year? the in peak Where peak-out? any where guess were they

Dennis Shaffer

me my mean, -- think I through flipping notes got here. the I yes. Oh, average

for I tax about $XXX reduction, had quarters. deposits think, in in the we So million

Richard Dutton

X as in of comes peaks, through. through It right it was Terry, year-to-date, thing. March-ish would the when first kind most So average, of the you the million second quarter, quarters. the middle $XXX the after think, of That's

Dennis Shaffer

moving our Terry, X out funding, as X years than for We money, more the that. and our But had offset have the can borrowings have we by it know. really just banks higher. hope the that to reason. there's yield number on is things loan think whatever was we We that that And in and know, that say, do a years we gone last to move because rely brokered previous, like But to pushing much quicker forward, going funding you and, of FHLB didn't been sidelines. to

do we've require we big You of that no lending. through all got lending other relationships. they rates in think know, some a so then just do we're chosen spread but We're to lending, to deposits. going situation. And going core to number deals. push to to to pretty going And of else The an more there's our kind we're the one really lending, up. those the banks were a sidelines. order opportunity those are stop do to same in much loans recession, generally the or pick deposit probably of of that other are if those to banks higher balance have sheets is because stop the deposits we will not up in and But Because go they've deposits levered I slow of

Terence McEvoy

the just that think Which Makes is here side? Is consistent I what you're The on do from with the one-off across complete level loss, you continues that situation? just think bank? and the seeing that bad check a expense industry, is sense.

Dennis Shaffer

help the mean, no trying all We been I industry but remains to you one. phenomenon that a are for of not positive folks, And switch just we ones, There could they're tell figure wish fast But be the it's us. I to it. would career that and everybody they've selling I apparently, our to out in what, if out. huge heck selling pay, think a over it we're get enough. was big

Richard Dutton

here well is -- awareness of our online aware We're media. really for it, we on along of a site, awareness to campaign associations fraud in make But we're throughout ago of at that a are working Well, our doing we digital industry. was of really our we topic banking of picked our social raise with our we and and is a our was them fraud regulators. trying, up customers, banking it other Ohio number for all I discussion. the campaign, this level X just have our piece doing to big with through it because just regulatory banks weeks of just a we're customers got the meeting

Terence McEvoy

And way decision one. maybe tax you The in release get the one of refund a mentioned, might to future the exit M&A. income business, bank the last as

sounds So on that it of was like the number decision of complaints. of part the top

what's outlook some conversations Dennis, So partners, to level interest your and there's Civista? bank M&A you're having potential over. clearly financial marks with for maybe, for obstacles rate get But

Dennis Shaffer

any I on just, think Well, M&A, are given you you just marks and know, like know, now, things right you and, I know, of marks as loan you tough it's mentioned, type prices that. do security think, portfolios to stock and where

make that it's you to tough So, just math work. know,

We partners. we're are with have dialogue continuing potential meeting to and

So those you're a think it do makes whether math right I the to now. just are hard buyer is it, really a ongoing. seller, or discussions

know, just you in easing relationship, We we the have deals with the that announced know, know, have that lose up, couple make And, you were the you I a near-term, minute stuff. you little don't kind math year. the maybe earlier know, We discussions you at the you looked those, work. continue of you of that couldn't see in relationship bit that of smaller because, stop, know, and but know, you to that, a

And we are. to discussions those of top we'll so we that think of people and want to going just meaningful to part sure have pressure up, and than to ours. discussions banks continue So are partner under want to you have because -- certain to make with they're be continue as more mind going view we I we're good

Operator

next The comes Tim question with from Instructions] KBW. Switzer [Operator

Timothy Switzer

I'm for Mike on Perito.

wondering the margin last this points think was the all. basis had what is have guys you that down around do like prepayments. quarter quarter? purchase to some accounting I'm off, and X settled if I impact at First

Richard Dutton

competed almost Tim. identical. this points We basis quarter, It's X at

Timothy Switzer

should Okay, is going run it that prepayments rate back once or move down like, kind forward moderate? of, a good

Richard Dutton

I for would will wrong, a you're you be tell about quarter. that until you How that? only So we use different. if wrong

Timothy Switzer

for And You I'd NIM next a moderation or good. expectations you guys could think like forward? do you X, going you your know, the bit expect on Sounds could still trough but little talk really quarter compression about of, here? when know, the you

Richard Dutton

to I is think deposits and little only more our not a -- I'd more one short-term CDs. down I funding, Well, not and got that but thing say they've overnight brokered like brokered got to the kind reduced But think we reliance, of borrowing we've table we've X%. reliance, like set the mean, we've increased have. we've that more I as

sheet up, from and balance at XXX surprised every something of less well the be for think move. quarter points. used to NIM rates basis Our we point each than basis go than movement. to shows QX talk end model at points ran really going We at more It's more XXX our basis model was. compressing And neutral asset up know, gotten our X down, if looked quarter you sensitive. rates has down, our about points for you the are rates balanced. it it's being at point than really first, pretty flat, When least, I'd

last is the margin or our says that the to mean, guess experienced X.XX% would are. I for thing there's not kind a nothing like maybe other model we X.XX%, So I the still again, was believe year-to-date say that was we've quarter first for I I some margin little of don't it X.XX%, room guess indicate the quarters. bit, would in -- at compress are and we or if trough? our the X but I the

Dennis Shaffer

as of see impact you other the surprised, I'm quarter may banks, that in brokered up trough. Yes, to know, you we But all stuff. we it's as talk haven't just on know, don't, get we really because we margin. the and that reliance fourth through we think may I similar the given we

'XX, X.XX%. If you was the our of look at back end margin

think all I So up. haven't that margin given back we

we quarter. the quarter of banks 'XX third you did. into the fourth our quarter have beta beta as then first quarter. last the And first we'll quick X make, were and I deposit did we here deposit So the the 'XX, I'm quarters move -- in know, our more as think move of second it It didn't further sorry, start rapidly the compression fourth didn't much other probably quarter. like moving did and

Timothy Switzer

okay. Okay,

So X at or quarter you stabilize. possibly can least another compression, and of

Okay, question I repurchases doing you had started back yes The makes in, that sense. stepped guys last was, again.

comment and the the that continue Any You the over you'll made liked rest can if the your the you of authorization and give your value rest to stock that here. on us you insight of do of use year into XXXX?

Dennis Shaffer

ratio, the that And than the that low. screens this recognize comments, it the was tangible it just Well, as is leverage we equity common quarter. in lower mentioned I I ratio just quarter think previous

capital anticipate know... think dividends payment activity kind to know, it mindful you you support repurchasing we'll be continue growth. tougher. stock of a makes your But little and I repurchase really, don't building the We, with repurchases balance I the and and So of bit that to of

Richard Dutton

levels it for the of has years. of Out last been the couple

Dennis Shaffer

I so Yes, it think would to tough prove authorization. be that

Richard Dutton

to Dennis where did liked thought said of Tim, price stock say it He he one not I our he want value. was make clarification. was.

Operator

with question Davidson. The D.A. Manuel Navas comes next from

Manuel Navas

that quarter first quarter a little kind saying Can bit, just third fourth progression? compression or and Just the wanted of that going follow-up less pursue compression to opportunities. to little the become clarify the deposit and a on you similar you a other quarter, is to Are bit. that little you NIM as

Dennis Shaffer

X saw think is whole we it saying Well, in Or the I QX, a think probably fourth from the more X. from -- barometer basis we might X good is in or that that of of Q I was probably what course compression of quarter. to points XX what the over a anticipate. a quarter-to-quarter And than compression we're to lot X was

Manuel Navas

year. little And perhaps less Right. next a into then bit compression

Dennis Shaffer

Correct.

Manuel Navas

have where could stable we it the if staying it's into to at XXXX see more point compressing? inflect no there point, stay the at and Fed XXXX, just done a XXX after in start is then or would you funds And we're hikes NIM

Richard Dutton

be incrementally to to are expand. growth I a bit makes XXX% it'd out up-ish, pull. fund more and loaned got We're think of to it, so it a of kind lot of that go hard a levers that stable makes have, we scenario, it. that, Everything of every And there that whole we've Manuel.

Dennis Shaffer

neutral. that shows Sure. rates And of modeling our it's kind increase down, up, pretty our rates

Richard Dutton

Manuel, right I is from prices. a that seeing part ones mentioned earlier, now, rates loan roll rolling think Obviously, seeing, month-over-month that as increase, now know, at higher production perspective. we're significantly only Dennis the the slowly right our all you we're slowly are

Manuel Navas

you initiatives a Okay. where side on bit little deposit you Because sure deposit for focusing wholesale you funding a the, that's the kind could have that gathering? out that I'm kind less outperform? you're for wild of about talk Can on focus of the if all card you have there

Richard Dutton

to there. your not have that pushing Yes, all look, say, mentioned, to saying, lending, we're with we we're deal, if banks going One, a going really commercial we're to deposits. couple things hard do deposits the these certain we're

So those balances... we need compensating

Dennis Shaffer

success. having we're then And

Richard Dutton

having having we're pretty We're with and that. pretty success with Yes, that. good good success

So focus. that's one

those we to that to and make people self-funding. We process streamlined division, of a loan fourth way easier in process retail And We'll those And our have, because quarter. it we loans. through loans off the business, for our set almost the lot will which look check go loans. is after business we think have small small loans our don't are small business here to micro that a also kick those out

focusing where things and X on. fully not our app may capabilities to work know, you continue really drive know, to work to maximizing we'll open that we And continue that that to digital you add app we're that get, accounts those on but services And areas can yet, we're like through to then So, its app. are people differentiating on that. we

that a working try are additional couple to So gather those to we're deposits. things on

Manuel Navas

great. That's

and growth, are year? still to the little be at equipment on expectations Just less the for the Is much yields that pretty leasing shifting unchanged this over coming bit quarter. X% seems a

Richard Dutton

know, yields least that on The September you XXth an made increase at yields the XX%. October indicated commercial the yields on The going since are Chuck rate. have even And, were side, in as are September higher. for

third than anticipated bit pipelines less really quarter. are for a we was good. volume that had But So little

So to we bit the volume a in quarter. that anticipate quite leasing groups do be in the up fourth

Charles Parcher

Probably gap quarter. just the for fourth guided probably full-year. the close than less we we here what think a we'll the in But touch

Manuel Navas

to balance you sheet if And sell have any of always more choose constraints. you that could

Richard Dutton

Right. That's exactly right.

purchasing less it. paid getting are it people for the We on

it numbers that. So felt to back may weigh Right that. end earn kind in at work. made what we it selling to XX% now, up we going That's We work. having of try the modeled and XX%. do We made keeping

course we that. have needs. been And we've may to sticking far, depending But to so liquidity shift on

Operator

next Cardenas The Daniel comes question Janney. from with

Daniel Cardenas

and products if opportunities You your quickly within services? had how and mentioned $X.X you to on going to do assign revenue would is million percentages, I had revenue expense hole be some how guess controls. and that that that your through current can out, then think hole? some you that fill you the work plugged increasing And leasing call

Richard Dutton

hope because of became, an leasing it we privately as through were they they the held company. a unregulated, group Well, to gain chunk

hire. several, and That, additional different always And had had you there, accountants people for that IT be, things. you and expenses that the consultants including in so know, behind we us to we've should part. know, most had to We have

to We year, the hope cadence pick much activity months the tell X more than Dan. of has months you, or we there. last bit or X a been X little the build the first X better hope now. to So up of can I some

to X just what doing, up we're make we're if profitable to where now group. do going weren't really with or those X that first So months continue we we extremely

Dennis Shaffer

they other Just had and because we we of everybody the with and up getting were kind additional rates were you moving things board. just were, and sidetracked know, expenses on

some of chunk more. the that our able leasing think do we and bit can like make with a expenses little away So control be Then identified that there's think overtime group. things things we'll We've we to that, go good side, on that some that like a side. expenses we on up

And come that and and over team. have, they've things. then expense we up. enhancement well. normal And led bank, products project We've some dollars through identified a just revenue has up they've we've Chuck with from there So the people all services some come as had

side, best come And the that's say right the maybe right saves. that's So leasing guess would I best our through going we're it's to working now. budget. But from half half from my guess from revenue of the now. other and then enhancements Again, expense and

Daniel Cardenas

can do right. is you that timing this there? in that's on that this going think you hit until of, XXXX you, full XXXX? Right, And the be take kind done this Do to before stride think

Dennis Shaffer

No, that. we we think can get

disclosures sending in things to that, ground hitting running in out set We lot to January December. the those go Some are this. with things of a be like the hope and really involved of

Daniel Cardenas

then to be me would sheet as over back is or of And side, some those mature the securities portfolio lending balance put Can just to jumping give good. into the much color to proceeds how how fourth Good, the do the those put quickly. your scheduled to quarter? portfolio? And get you work in on securities here

Richard Dutton

A little page. the trying I'm both. get to bit to of

of of when in scheduled mature, are stay next that, those bank. and And of those million got We've will probably pay -- the the quarter to portfolio. off our the And have borrowings. investment that X/X So X/X course over And and/or those maturing year. yes, Those in loans as the the quarter. mature been probably they almost investment when $XX that's used in the proceeds fund we're another is X/X mature fourth or, for subsidiaries. that -- at in what they

Charles Parcher

math, are, Dan, borrowings, of were sub, implications funds the this like the some pay may and certain to and be to loan Rich just about or that. better utilize And to fund it growth run stuff or that, to those because down I of stuff, us for tax investments some see We're tax too talking of going at even there's implications. those just what

So we're running, you you know, there. we're working on that as well. We Rich just don't for have is right. But an answer

tax just hey, reinvest we've said, rerunning We're implications. far, of So that. on math the because let's those the

Daniel Cardenas

Got it.

looks a And are list they good. quality little watch here ago? QX, than like your looking directionally? and How good. credit, quarters Good, or you guys X in trends are credit on were, I X closer you say, mean, were what Okay. What kind watching areas of today then

Charles Parcher

Yes, concentration Dan, really have this is per We We else, Most is office. stable. a Chuck. se, any, we're I mean, good don't knock kind like the really on to really about office. really really office. feel downtown Obviously, wood, portfolio. in of offices our any metrics suburban everybody watching of continue be our

You building Suburbia. that storey in know, X, X, X

multi-family you what So, units it in seeing we're a watching nice They we're growth enough not in seeing of really yet, Ohio. lot really closely.You across, our areas lot fast strain the major metropolitan a we're but know, really can't there et piece of Columbus, cetera. know, build is

about feel that we So, of good it. piece

know, but don't tell would in have lot You closer. a it right little all we're you of else, like concern watching I that all, we a now, everybody

Richard Dutton

couple, because it's the watch either paid and a we've Yes, neutral, list couple have migration, pretty or but the a upgraded. fairly, added been off been has then

neutral. it's from know, from standpoint, pretty you loans of and a number a been, it's So dollar

Daniel Cardenas

be here tax Good. thinking And me. on for rate go-forward we should How about your last a question basis? then

Richard Dutton

guess, XX.X% the, The was XX.X%. I was quarter effective rate year-to-date for for tax and the

my be So would XX% I'd put I'd model. say what in

Operator

conference Dennis Shaffer closing This for any to would session. remarks. question-and-answer like over back concludes our I to turn the

Dennis Shaffer

closing, continues interest and participated In for just that The be want rate I So environment everyone in a thank challenge. to today's those joining to you. thank call.

earnings remain However, do strong. our

will few our remains produce solid. And solid our superior months optimistic And a results. forward and look to I margin to Our pricing you in our remain year-end results. disciplined to that share talking core I deposit franchise continue approach to to

you for today. time So your thank

Operator

for Thank today's has now attending conference presentation. The you concluded.

disconnect. You now may

Civista Bancshares (CIVB) 27 Oct 232023 Q3 Earnings call transcript