Civista Bancshares (CIVB) 30 Oct 222022 Q3 Earnings call transcript

Good day, and welcome to the Civista Bancshares' Third Quarter 2022 Earnings Call. [Operator Instructions] 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. obligation any any during statements disclaims call. the company to forward-looking update made The

At refer measures, information comparable to to may financial on management Additionally, non-GAAP contains website, recorded Bancshares' GAAP will reconciliation discussed not non-GAAP may measures. press Civista also www.civb.com. be of website the the will Civista today the The on well the company's supplement, other the to which substitute most conclusion be have. Shaffer's measures. and the take directly Mr. available quantitative as call made GAAP and and release, available to you but of intended remarks, the are as at This any he questions team management

over Shaffer. call Now to Mr. I'd like turn to the

Chief is I Parcher, CEO our Good Dutton, Operating Officer bank; by joined I for Dennis Rich company Bancshares, and of thank and the and call. like Chief for joining other of our us Shaffer, of earnings Civista am company SVP President bank; would XXXX of Lending to the members SVP and you of Officer today team. quarter the executive afternoon. third of the and This Chuck

the the company. July Comunibanc our that take million over on September with X our accomplishments streams or quarter and of result past weekend. third our XXXX me by several net continued conversion $X.XX share the months third approach that of XXXX. million diluted diluted Corp. and focus or for we $XX.X a noting and growing per the is the Let X diversifying This transaction We or this occurred completed and during direct managing $XX.X start income ending the morning, on systems of transactions significant share quarter. income reported revenue we $X.XX in for closed of XX, per This disciplined net

to our million grew to and or services an and to were during our products Loan $XX over us Even excited strong by are after via and XX% balance quarter. by existing funding interest strong. margin Northwest at organically loans adding quarter for on to deposits Due interest-earning million that low-cost the million XX the sheet, new of loans assets annualized rates, points continues the introduce offer. of to has core $XXX approximately Comunibanc, expanded that loans to loans footprint new be our we our Civista as addition $XXX higher core basis In customers Ohio adjusting basis across and growth rising yields the linked our came added repriced. to to

betas as our deposit moved slower, increased funding X cost basis result, a Our points. and only

X.XX% the was on our return to assets for quarter quarter equity for XX.XX%. average compared quarter, our on Our the was on average assets our X% return linked and return linked on was compared and equity for the X.XX% return the X.XX%, for was Year-to-date, to XX.XX% quarter.

We continue shares. in active repurchasing to be common

XXXX. shares repurchased XXX,XXX X.X% at the of During shares we shares. XX, Year-to-date, quarter, repurchased outstanding XXX,XXX December have the we or

further were ticket leasing We X. announce on excited business the to revenue company to full-service family acquisition and of believe a Group, our of equipment addition we expands closed leasing October Pittsburgh, Finally, in the a Financial transaction The Civista based the company small Pennsylvania. finance streams. Vision commercial

were The income our first months was particularly interest for linked year, significant income balance organic past Corp. PPP sheet. result acquisition the This income rate the amortized that quarter. of loan throughout growth $X.X to this the excellent interest Net primarily Comunibanc to and the year. interest XX.X% the prior there $X.X interest was million $X attention or quarter the the income million Net our turn rising XX.X% X or in compared increase statement year-over-year. fees increased XXXX increase X.X% let's increased environment the million of of our Now impressive over in and our or given and XXXX.

with of Without program during business end customers XX% PPP the are a loans of basis. on and XXXX success was we for As which $XXX,XXX able PPP for fees million footprint. loan originated throughout the and annualized extremely loans I the approximately our outstanding. we $XXX quarter, for an XXXX, and At the to loans question, excluding loans PPP our organically pleased the or acquired transaction, X.X% growth this the in Comunibanc grow million only or our is by communities stated, $XX we were via our quarter, quarter, remained

yield interest respectively. X.XX%. Both margin linked X XX rates. basis margin on already quarter by compared new XXXX, periods. being for originated the over the quarter as X.XX% of loans basis repriced and Similarly higher net was first and measures points quarter our earning to The rates the assets our increased months expanded X.XX% the prior and by increased over loans points our books XXXX the higher basis X.XX% at quarter at by Our expansion to XX year comparable over from XX reflect for linked points on are the

X basis up In by by compared quarter prior quarter, compared year-to-date the for $X.X were increased also our Our yield the X in of XXXX, third basis XXXX quarter interest the and earning year our PPP augmented basis in year fees. to though the Funding for points. funding months million and yields points. assets by to points loan accretion basis X to XXXX ticked the of same grew the first by even linked quarter costs on X the comparison over points ticked prior by XX up costs period

$XXX,XXX, was million increase year primary of loans gain on in were with service of a decrease income which and from linked at driver offset our declined to in The by in the charges. the the partially non-interest was $X.X $XXX,XXX prior quarter, $XXX,XXX comparison sale the of the consistent quarter decline During year. quarter quarter prior the mortgage same in a

banking sale an home on returned quarter the were loans linked $XXX,XXX, financing new gains mortgage typical our activity we of quarter of mortgage of from increase more XX.X% our Third to purchases. as

You will $X.X part balance quarter contributed a our sale on which restructuring the our of decline. as the the of Visa sheet that XXXX, year-to-date of recognized second to recall million B in we shares gain

the However decrease primary non-interest decline income was driver of the sale gains million the in $X.X mortgage a on loans. our in of

Wealth the million year. declined prior linked revenue million compared comparing management or For at X-month to were period, to year-to-date quarter in non-interest our consistent XX.X% million the year. our revenues wealth prior third income the $X.X the quarter was comparison management as in to $X.X $X.X

accounts to continue helped to in additions add existing We new our with and overall market. their us continue pace clients existing the declines to keep the make which accounts,

will prior increase professional transaction. sheet expenses replaced or non-recurring the as market million. our and $X.X expense continue footprint the the X.X% as was by of an result Comunibanc opportunity costs headwind linked that balance diversify be the to anticipate compared some fees, deal of a services we million quarter Non-interest $XX.X to non-interest we related with million quarter compensation for increases grow expense view the and were a $XXX,XXX time, year-over-year expansion for of to was While one-time of costs our entire $XX.X pressures $X.X expense, Non-interest Comunibanc our in maintenance income. year increased transaction. across to software these million restructuring expense associated

addition to April quarter during recall due X% early the banking million prior our of long-term X. million primarily may increased totaled termination expectations expense the year, Compensation related that transaction. increases, go former transaction fees incurred effect in related we related line legal penalty of to and year and XX. or XX Professional Comunibanc increased with prepayment of Total Comunibanc FHLB in or on You expenses investment XXXX, $X.X employees primarily which approximately the on our July September over XX.X%, annual into $X.X and in $X.X $XXX,XXX through second to each a $X.X a to our borrowing. the Comunibanc million fees were million salary

quarter XX.X% compared from XX.X%, costs, million by ratio $XXX.X in our periods the of $XX.X the of was we reduction one-time million ratio been total XX.X% $XXX.X each XX% million, and efficiency loans had a efficiency increased our for Year-to-date, for deal would Our and XX.X% for year-to-date. to If adjusted XX.X% linked have and loans loans. addition respectively. Comunibanc PPP of includes which those

would production, high the million estate real in increase. to continue year-to-date one quarter commercial on an Excluding portfolio the loan Along or PPP $XXX.X strong our lines drive $XXX.X annualized basis have loans, remain majority our $XX by of or XX. PPP, for adjustment grown an near our virtually markets at September million Comunibanc undrawn Making construction at XX.X%. of for all-time our with Comunibanc basis. Demand this loan the our XX% growth was annualized at million and of and third an every

While rate we are inevitably the even at will anticipated balance growth, and environment of rate XXXX. mid-single-digit slow confident portfolio economy the we higher rate loan loan XXXX into at face that grow we a headwinds, in of believe interest our single-digit high for the the will and the a growth

On focus growth our the as XX.X% to this beginning $XXX.X footprint. with have and million across municipal and business our accounted attract low-cost Non-interest-bearing $XXX real customers. core with in at made total we we accounts a the in of increasing every increase. since our financial experienced uncertainties XX, of to the or deposits accounts not any customers' except up in funding light XX% year. demand deposits deposits addition of seen the of operating side, our The be economy, we the of continue total deterioration for associated September category Comunibanc's of demand million interest-bearing positions continue Even

than provision growth did loan in during to we While economic a our attributable it stress. $XXX,XXX quarter, portfolio the was rather make

if have for loans, was have In December loan mark the with would addition, from loan ratio of to been losses the from slightly our XX, The non-performing which at our for for losses X.XX% at quarter. XXX.X% in September net we as of end did X.XX% XX end loan XXX.X% recoveries to we credit year-to-date. at the at our losses allowance of to realized XXXX Comunibanc's ratio associated compared X.XX%, loans, that loans $X.X allowance million XXXX. of declined of September allowance include loans the I would to to note $XXX,XXX the

The XX XXXX. interest requirements in the the from comprehensive on portfolio. $XX.X to We continue September decline to our pressure XX, it and CECL on to allowance income million resulted environment to XXXX, be that in rate market investment other the higher bond adopt December and track a beginning had new related

ended capital capital create which this of repurchases. September XX at decline, goal our X.XX%, capitalized is payment As what X.XX% our remains quarter organic capital the well of ratio was to compared with common and earnings, XXXX. growth to continues X and a X.XX% XX, to dividends deemed at above the well result, tangible of we support share through December equity continue a Despite ratio Tier parts be Two to for our potential Civista adequate regulatory management capital purposes. and strategy to acquisitions. have overall important is

our believe is stock value. to continue We a

XXX,XXX average for of we share. shares Year-to-date, have were common $XX.XX of X.X% quarter, repurchased our XXXX. the XXX,XXX outstanding stock XX, per or for price million shares that During at repurchased December an $X.X of shares we

and responsibilities. We and continue employees they recent in the the and It came more our way $X.X in of execution reinforces my much opportunities be customers, pride million our way work and not conversion, see weekend, the planning our past to has team. repurchase employees and the to with understands involved daily of were I to growth have been more of shareholders. an could manage authorization planning brings program. current approximately our remaining together of our a conversion the Civista with this even Many their summer pleased

company we As leasing I X. Inc. brings based new equipment in earlier, of Pittsburgh, over Vision October with history revenue transaction Financial finance XX is Vision years a that with closed indicated stream on to Pennsylvania, an Group our and Civista.

consideration that each million transaction they diligence by XX% results the process sectors; additive cultural XX% and cash include organizations said both recycling manufacturing, on was testing. or waste calls management, due While customer propane, not million environmental, and mix must Deal by providing and and extensive $X.XX a $XX.X our construction after building be do non-destructive strong focus customer drive a stock. or industry superior X relationships experience. I'm confident, highlights that fit. previous on exclusively, I've

X.X accretive funding X.X% We to be ramping accretive, a expected year in as being to the year deal into from immediately bank-funded earn-back. being X a accretive in value book X to leverages The transition has year tangible up model. our Vision deal XX.X% low-cost

work we client are our look of credit In volatile businesses. bases remain sheets. to to quarter of our all leasing Businesses leveraging our continue pleased will loan commercial we summary, excellent footprint continue towards the to solid quarter, and employees continued successful another Our economic and to pressures fourth across and earnings, inflationary the the grow balance Despite the integration both over with loan forward and quality. optimistic. growth interest facing, uncertainties and are rates, we have we strong consumers

successfully Civista you this Our questions that and loan into Group. have. We to afternoon, you we'll to the be well the attention solid. of your for on Comunibanc now integrated may same and Financial integration address successful are pipelines happy are Vision our any family Thank way

McEvoy with first [Operator Stephens. Instructions] Our question from come will here Terry

a start I on couple if with of questions Maybe Vision, could.

this outlook just expect was we discussed then of year a there, end understand follow-up the loan of back your year? in as off, that last can for, call. expense that you you remainder as is at I earlier just be connected And balance on to that impact be next Where of side, that can First kind the so guess, piece the portfolio build next the help guess of Any kind that would the the loans? And me sheet accretion I and you with included year? is into that? growth reserving would

in of was our Terry. the for then second included any your not It's balance the think I sheet of impact? And year, the remainder numbers

modeled of from Chuck. that impact sheet Rich perspective that not portion looking that would I'm we of our in right Terry, the most balance now We'll what we've is would I'm be. not balance Yes, see cetera, sure, actually is of C&I most out obviously lending side. the I -- provision, this know yet forward, et see sure

a with to everybody. to fourth quarter. if be Terry, do that said got you. But in numbers for have I'd in came it number run for We'll I XK less together, get you had rate out the those quarter good got numbers conversion. And We'll been Vision it. it honest has good we've issue an expense We'll trying do we of it. fourth kind and this than that's don't that the for the I

And low? then of October? deposit You've the deposit holding the on And have forward? are just you raised a on what deposit here your job costs rates thoughts them done in month costs, going great

think, it the third Yes. We look in was to virtually Obviously for the nothing deposit beta, quarter. increase. I

are we'll bit think We a but feeling fourth in pressure, expansion of little the here. still we that have some margin quarter

slightly, as continue that. We it on that and is will We know some fourth that now, beta deposit we quarter. have rates there a to pressure But this little quarter. watch the bigger raised in we'll be think rise was continue is here past margin we right But going than bit to do rates have deposit expansion that. to deposit rates

But kind feeling a taking of ranging one-on-one pressure we there we certainly or not think but might municipalities deposits. and our good balance on like of And pretty quarter for a us. big to basis time our kind go job non-maturing kind some like I of of Rich. forward. next to we're the of mean, lot the where a this be care larger And across holding of Terry, alluded of still we're and line. board, beta that's tells is as modeled deals. sure, increases. said, a the a wider our on increases, consistently approached depositors, XX done But Dennis we've have negotiated in kind do that number them we've one-on-one We've so you I of kind it, point may what

of that strength deposit see our base strong we And The this. is it in franchise have. times the like definitely core you Yes.

I results. think it you quarter saw in third the

And say think in strong accounts. non-interest-bearing deposit have from And deposit that mentioned comments, as that's base. we another. to see to the think it. have what core continue high-performing banks I XX% banks this I will you'll I'll separate I The one continue my that

and one of that had key part one. deal closed? ask customers or conversion, Maybe has have now of Maybe that the question, as that I is occurred any the the talk about employees last conversion loss market I'll you just squeeze since Toledo should

No, pretty on in and we've lost deposit really any and on any Balances quarter, that not lost employees, the accounts. not were we've third loan side. both flat the

were I think they fairly flat.

a We are just working on person area. integrating in our them in Chuck's We alone, to now. that hiring. add budget, had budget our original for

little bit maybe Chuck I'll comment a personnel stuff. on some let and of further So the

exec. Yes, now would what on right I we're working call market hiring

a of mentioned, of did we at retire, have se As conversion. lenders any the per their decided lose perspective. to anybody senior of from substance retire did competition personnel We one to Dennis not time

him. actually as another lender to to So we're looking head and a looking We're replace well. for looking name

get So of out I end built entire feel we'll group that like by the the year.

and Toledo. Chuck's was Terry, where remember, his background career. was And he that's he spent of That's banking most where born,

a but not he's bankers customers, with of lot with got the there, other contacts market. only So in

here next KBW. will Tim Switzer question Our with come from

some question first Fed if And tightening deceleration seen? the guide trends upside weakness weakness mid-single little high Yes, impact up, there single and sort some bit in say, my guide, 'XX. deceleration that year. digits? holds the a maintain is the was digits high economy from to assuming just to single like, economy to we've mid-single the for recent loan in loan the given a digits single from in the the then Is assuming from of And economy let's high of on is question My here? the is of that on slight next

Yes. Tim, this is Chuck.

clear pretty it now becomes hazy that. feel out pipeline We probably based into up. little hold does it if look we a November and past upside on Then as through is there right December. think our I

perspective, up, kind we'll mid-to-high planner, been, budget say, single-digit at a we're But yes, around. lower looking forward. economy to would starting piece the from have to be a going and single-digit of We hold double-digit normally if our what build I that's does higher a plans

we Tim, and But going on get too. kind lease new of those around I have projections, footings leasing. We're to the impact starting loan and our will our just to division would the that add. are forward what arms leasing

does be And digit in Right. include to mid-single right? that 'XX Vision rate clear, not

Correct.

NII Do was if this missed you of purchase what the it. I sorry on quarter? guys I'm impact have accounting

but just on wasn't sure a big, I'm to it trying it. handle get

X points. basis

catching where to still head. tough 'XX, NIM 'XX, generally, more some once I will re-pricings a finished, deposit to in probably of think But guess is forgetting the know going NIM deposit be we had of second by it's you the a that, at been point maybe And like do you've just in betas lot can the of but of a 'XX, Is scenario asset up? to the leasing middle that betas? offset where know part? see driven growth compression I there start bit little half portfolio the

I up portion those our and are are basis such of our again, non-interest-bearing And in increase another with disciplined deposits things good this deposits. is in pretty points. out a if of talking just of being Rich X, huge we've a mean, again. levels would deposits re-pricing Fed XX% funding, or job after would But historically, bit. think I XX% done of that say the creep we're deposits. Certainly our basically a low-cost little And Again, logic deposits

checking in checking. business they're personal and So or savings personal

we So reliance heavy CD. don't on a have

have think it certainly bit. see I if I out impact. once don't but quite will rates down, a slow we'll think flatten margin the we'll compression, But less So I significant know and

deposits, those that point I don't other is we notes. my mean, have want make to of I The would noninterest-bearing XX%,

XX% accounts. those business are of

dividends to lines during think do that lenders credit deposits Yes, mean, job aren't rates will. really don't so transactions, great gathering you I to move. that's, our a I start when And when they his our I gather We're bank, but if sensitive, relationship those loans. operating them do a We lenders, Tim. interest that often, Dennis like and rate again, comments. of pays don't alluded are

not it's some again, think, music to I but when the be we'll stops, going significant. see compression

guys last quarter will question been idea? know like the the running And what or accounting? CECL do And you a parallel had. I Have next have you be impact any

we're couple the to now. change. what numbers parallel Stark. This been of running And that that's going happens X I next in months. a lot Paul quarters huge say is a But on a based today, think don't for going of on to over X I depend the or We've see would

misspeaks. interject CECL We're going It If QX. quarter. I adopt could on going next not X, to will January for just be one be before Paul to the it's so second

where I number going we're model hey, say, overall, the get is always impact. that, point make would basically think to here's is is But to what no. the I a can question from start far significant the the going I we saying, be.

come Piper will question with Nick next Cucharale from Sandler. Our

Can Comunibanc given extract us the of future in out to expect you think savings how conversion? about you the just cost recent deal and periods, the systems help rate much from run especially the

think We in year, XX% next in were Nick. year, had in I XX% them really this XX% them cost of saves of model, --

most realized that most retired, of a employee place, expense. lot people saves cost those and lot at remember, of basically because, was compensation the senior X we've take that in So bank have the will them a compensation compensation, of

of acquisitions recognized on almost almost through now. stuff. lot immediately, that to we've the immediately So conversion period this a stay and those help recognizing we'll that start we've done, people unlike this But us did those

than out we'll for would and Nick, conversion we it. have of that's probably this, cost good for non-interest million. QX. just QX take say about will get expense I the $XX.X proxy you apologize. don't And ex-Vision you get a usually I'm if numbers. one-time our some I was better I But you number. better costs, better a the And

And I touch capital just share necessary. return buyback. wanted active the apology on to lastly, No and

repurchase? tangible current some dilution equity you the us give anticipated common for continued and deal, Vision your can of light from further in color appetite on So your

Yes.

the bit. a still -- we that's great think over to a paused here capital. little paused think We've bit deploy little way a I

stuff. We see we're these how I out the shake to We out shaken want now see numbers Vision with they've thinking HCB. once with about how think that.

of we're move we So very that as being mindful forward.

are We and our stronger are they've earnings earnings than creating been. our ever capital with

And quarter, replacing a portfolio Get out, somewhat in are rate if because temporary. we maturing is And with the higher and are, think think these things things so I this yielding past increases stuff. we down we as that's plus. roll this fourth assets slow

So we do will eventually think reverse. trends that

So thoughts, those guess, that. our around are I

[Operator next from will Davidson. Navas with Instructions] Our question come here Manuel D.A.

So you the going modeling just me, remind were have Vision you're back NIM yields Is discussion. of firmed that you transaction? I Can X%. to going think up on X% yet type right? the what pursue to to you

higher our X% one stuff. deals. of they things of on Yes, a or and that X.XX% for X% rates, on then, larger on deals us mix have able depends modeled transaction. We some was these attractive. than we the than at what but that risen rates should leasing rates putting I they'll the bit generate. think be at Vision that may are lease going found do number, higher was in those leasing higher, and lending since we those a more think to X.XX% not they'll be be That loan the they it after today, or little on Those competitive corporation Should be larger and things they're just little but

So, you to more you Chuck, have want add color do any there?

would number. said the will higher credit a was is, number in there, would X our off to customer as capital gives to them you general, Dennis gives structure come you're out our No, and the forward, a them little it as X% opportunity modeling that past, looking I some say, average forward. their X% to that if But X-rated we pricing let's What bid of look was quality a comfortable I'm maybe customer with rate a say which number leases, in opportunity I put bit them. on credit, the number say which, that give said, good X%

the back high are to peak a there's NIM but wanted a past bring half through, the to the you to about NIM like seems a be to a work talked talking but we rest Could to cliff? book next much that at I of higher to How first peak you're NIM lot still through next still discussion. It out? lot folks the in see can you accretive Vision of going of assets year, rising the adding year? still loan Because

through now, we how too, figure working want right sell. just much try hold, to we how to out much to want Potentially to we're

So we're you'll numbers decide probably on how forward to period. our A year. increases next sale type of that to depend some perspective see on will through of we're more some gain loan That's a that how try ratio to working on stuff over mix into the going still hold. looking lot time that much deposit

Yes.

we're mean, about where modeled deposit. I to loan shake that. Currently watch we'll on and to depend those So loan-to-deposit ratios some retaining about XX% we out. XX selling XX, but of that's going

got this plenty do is in leases run think Vision or very $XXX million we've to year. beneficial. which will right on loans I be to now, of $XXX So room million pace

about to $XXX I think we've modeled or close million so.

or that million goes go yields. retain on of we half so should $XX higher on at those, if there's So perhaps or

higher And of definitely we like be think will a one the deal. for today. We diversify bit stream what there that is So only yielding not us. that's little that revenue but benefit our reasons up out we wanted a the we're than a have revenue picking to we streams,

banks one a bring customer that them jumping way long-term. of seen first our right really and the within already now to a of end to organization. And base, C&I a the customer has leasing it's quite few the and our forth. really that referrals also in part going We've that the back especially instead other us losing is synergy has in our up think that couple weeks, it it's leasing company may it about like of we we competitive And

synergies great the deal. So within are this

we model base those any of didn't our And synergies into model.

So that's all lift for us.

And think include not yet? year for come confirm, does I your loan up, guidance to Vision but just it's next

Correct.

like the to deposit you've Or through-the-cycle is rough you're And same the with is that still costs, percentage? update in any deposit well how beta there? kept assuming there

expansion. do quarter again, more the was I be nothing. anticipate deposit Well, beta third margin virtually The it it was think because will we than

will But it again, period, basis better rates peer our than XX be margin XX banks. look points before time one, was the our I just lower. fallen, slightly to So 'XX, had back 'XX, to 'XX

our to to As up caught improvement. basis were had started bit less rates We XX room points to peers little fall, still because XX we a us. for

we stay before. now going some were what healthier remain to back in feel much is the that -- then We peer done our of put in as up, past. margin -- We're our proven we going just back cycle to we're rising And they're going that than rates. disciplined with disciplined we've think more banks, as Now again. we've that

I Okay. the That's comments. great. appreciate

Our next follow-up McEvoy Terry Stephens. from is a with question

you're then that as loans mature? for you Have anything office, that so your recession, the at one figured in is the keeps And higher you're watching retail, ask rates or a me look TV a over I CRE, Just maybe closely? billion. a more talk stress I in CRE When seeing within what I those else $X credit interest tested should which about hotels it's bit, quality telling question. we're quite portfolio,

first. start is Paul. I'll This

there. And we So did have even out completely a we more really we CRE the monitoring hit, of these go. things we amount have been I as past. started stressing in COVID think than significant do When this we

go. at frequent in sure of making We that. the more getting financials they're looking interest much We're deterioration we we're top that really haven't seen deals, construction at on to the that this sure reserves on So make all. as

criticize over all mix And seen but been have leisure little that they time. that there's have a we've to more really the up since all bit In revenues. pre-COVID fact, than we built a upgraded maybe business, probably the of all COVID hotels, returning are

So time them. the feel standpoint, from we start don't at we're and about that is think think we concern pretty to I lot door a open doing I But the good had the clearly going it. of gone.

that's go going the forward, mark, I question think we as happen to what's there. still office, big

deteriorated have vacancy not Although in rates markets. the significantly our

markets our the the say, stable. Yes, at or been I sales across have really side from would looking perspective, Terry, sales least

announcement the Columbus, From mentioned, and continues As watching university, great metro that office, to both year Paul strongly. et seeing we're growth in in Cincinnati we're so a We've growth areas. any cetera, the develop far with this deterioration but in very the office. market with perspective not had Cleveland and intel

So our on markets. we really good decline Hopefully much feel year. not wood. seeing We're about that continues and next into knock

rates, XXX, we've I even mean Terry. did environment. always our were rates XXX stressed low, And XXX, up we when

do those. we stress So

We look cap pretty borrowers We rates. at Cap have and good we think low. at liquid our a I of job historically co-borrowers at leverage. how do been rates are. look looking

pretty us, way at. good deal X.X, when the in And is the if we're don't So a XX% coming why recession And credits only that's know they and what up to into underwrite I at we it, say, think all lot I is that XX% of beefed really job as to banks of we stuff. We think I instead And at based okay, is do office. the it's and feel appraisal you, value remind Well, on pretty to have go it's just what good if go we a we rate looking we in but geez, or want X.X, in. because this not a loan that was XX.X%, have cap underwriting. a something. do

storey We stuff. we are of in office And buildings. X% tall office. have any or downtown have a in office office hotels, buildings, Most buildings couple of buildings big single-storey and don't office ours either X.X% about

in a job. and cap are we good, rates cash. in good stressing those very think the doing rates of So underwriting right and some And stressing but the other really occupancies now, I are

but a do of the down top we after said, bottom-up you portfolio existing of kind as Well, in not also only our fact. underwriting, the

costs. So a really far. lot standpoint of I out haven't of has really that seen so concerned really jump from But there's the out nothing noise anything But there about. we're increased hit

our running all during low money stimulus in revolving guess, of outstandings Yes. credit. revolving of Obviously on lines. that the the lines that of We're is to on XX%, in. closely, closer used what's XXs. to I down way came And, our guess, XX% credit governmental of lines watch I one mid right to last, revolving got thing paid those commercial almost all now I Terry, relatively run We

quarter the little Henry XX%. it a XX%. looked we end, at was were about at ago, bit And I I think couple when went I brought even County. think days down last think we It a actually I of

So we're not seeing call, on our drawing core any would stress their credit. of on our, to what I corporate customers lines be

over remaining any Shaffer to session. we conference the questions, like will turn no With I'd answer question for Dennis closing back our to and remarks. conclude

to a forward. extremely that we low-cost look for months In those want participated I and to in Again today's positions talking move to everyone who share year-end are believe our do third results. strong of call. you. base I closing, deposit in forward all with our thank our few I as pleased Thank just quarter results. to we us you core joining well

your for you thank So today. time

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

may disconnect You your lines. now