Civista Bancshares (CIVB) 28 Apr 232023 Q1 Earnings call transcript

Good day, and welcome to the Civista Bancshares First Quarter 2023 Earnings Conference 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. in Company’s SEC website. discussed available which are the on factors the filings, Company’s are These The any during forward-looking disclaims statements Company any made the obligation call. to update

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

Now I sir. ahead, to will over call turn Please Mr. go Shaffer. the

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

in credit capital and positions. Given would like industry, deposits, liquidity, by events banking the to recent comments I the our start off discussing my

First, unusual we deposits. in have seen little very our movement

banks and recently engaging customers how strength proactively educating been differ Civista has our failed. we that on staff the them and Our of from the

options to insurance done a tremendous In in addition, our coverage. job have FDIC our customers providing maximize employees

XX% $XXX.X the at related deposits of Civista’s to million exclude own XXst. and were we deposit uninsured our tax March those program, or If by FDIC our accounts

March public concentration our unpledged and million our with quarter no than securities in $XXX.X footprint, we at March municipalities more Other than which covered deposits cash XXst. at had XXst. were million deposits funds at uninsured various of Our end, across $XXX.X

our by XXXX. brokered X.X% CDs, total Excluding declined December our XX, tax deposits or million to $XX.X and deposits compared

approximately different our retail and overall So, and in expected, these movement utilize retail I checking the into of higher would is $XX stimulus savings out treasury the million to pandemic management our of that that no accounts and and own as this industry beginning department. this than out customers point yielding commercial received commercial funds in funds. during are wealth money customers many of was

more balance deposits market to aggressive Mid-quarter, balance we sheet. rates bank’s money CDs with on bit on and the became these of more a higher little promotional retain

customers demand Attracting accounts the a of our and At deposits commercial were operating of business XXst, accounts. business accounts, XX.X% retaining were our of noninterest-bearing focus. continues March which to XX% be

to significantly peer-leading believe valuable interest and deposit our our profitability. one Civista’s margin We to and of most franchise continue contribute characteristics is net

continue position we off-balance our ready strong liquidity and to Second, access to and sheet monitor have liquidity on-balance sheet funding.

and Federal at I mentioned, Bank we Federal and from Reserve, had million XXst, billion $X.X the Home As feeders. funding in and securities access immediate $XXX.X to unpledged the cash nearly Loan March

while -- Bank’s this have funding. and it source Funding in billion this the have funding Reserve Term included do Reserve sheet Federal Federal off-balance we $X.X nor Bank’s the utilizing for we is anticipate up up signed not, have we signed we not While for of Program,

our Third, quality uncertainties credit is economy, the with strong. despite associated the

deterioration year-end, conditions. customers’ to we and in any financial not metrics credit Our remained systemic our have seen stable compared

increase We and than the credit in for for $XXX,XXX in economic growth solely lease stress. a reserve allowance quarter provision $X.X make did portfolio rather our on our $X.X to that in commitments. in did unfunded July X, We a million CECL This losses adopt loan the XXXX. a and was resulted during attributable million increase

adjustments as entries related the were earnings. recorded Consistent and not principles, did generally accepted equity with our adoption to accounting our to impact initial

a X.XX% for XXX.XX% December allowance our XXXX our improved increased from December for of XX, XXX.XX% losses loan nonperforming to to at ratio XXXX XX, at to the loan from losses which loans of did our XXst, March at allowance as As loans result X.XX% adoption, CECL XXst. at March to

we lastly, create our through capital earnings to continue And and to be capital strong. continue ratios

All of capitalized. ratios is remain considered capital our well regulatory what above

first detail like Now, XXXX. of $X.XX I diluted quarter. million would for or quarter $XX.X reported some morning, This first net share to share about income our the per we of

quarter, growth of originated company, and million equipment our an leases leases or annualized loans and leasing grew at net and retained by by Financial. $XX.X loans This of the $XX.X new During rate includes million X.X%. Vision

recall, Vision equipment and across financing will provides leasing small country. You the

the rose Our points during costs quarter. by XX basis funding

However, we yields nearly X.XX% margin able kept very as pace. were maintain a to asset

with quarter, historically Our the leasing our to be We is partner, do industry. transaction well is anticipate as its way on us in integration integrated, of quarter their newest increase Comunibanc fully the production Financial the gross allowed overall and pleased the volume first on slower to focus to during Group during quarter. which were we the the Vision

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

income prior for prior $X.X our XXXX, growth was which first the than quarter or our a share of some quarter. over of performance the strong The with million Net year loan continued and year. detail consistent was greater XX.X% quarter. our throughout result increase linked will I organic interest quarter Now, during the on the

half that in interest Corp amortized increase over by environment. the This PPP year. and there was particularly growth, rising impressive of Financial the organic of the in magnified into XXXX first the quarter Our coupled given million income rate $X.X with acquisitions was of the second interest prior of XXXX were Comunibanc fees Vision

XXXX. first margin remained for for over at of and Our quarter expansion the to quarter X.XX% quarter the interest X.XX% significant compared net strong linked reflects the

to to reprice. the XXXX XX compared our points continue of XXX on quarter being books originated new assets increased are rates and loans increased on loans first yield higher the compared already to by earning quarter as Our basis basis at and points by linked

loan Our at last quarter. cycle consistent over XX basis the XX been months beta the points through and the for has

for X.XX%, XX linked quarter which an points costs of over were funding our Our the basis represents quarter. increase

the to of first funding by comparison XXXX, our In quarter points. cost increased basis XX

beta quarter aggressive as we Our during deposits, deposit balance accelerated larger the became as mentioned with earlier. I more

X increased quarter. points excluding deposit XX and the brokered last months the Our XX was beta, basis points to basis for CDs, over

and in going beta our to flows We similar will jump react anticipate forward. continue a accordingly, we deposit monitor not deposit do but

when compared and our quarter charges $XXX,XXX last of Service or fourth services XXXX. quarter deposit an are decline showed post-tax is charge earned quarter in service accounts. tax linked in revenue fees assessed are over $XXX,XXX to program declined XX.X% the due our of on by of $XXX,XXX linked were to increase the quarter XX.X% of the first annually our The These for or year. season timing and

Mortgage banking increased rates be of continues purchase continues tight. for pressure to the available interest and to under as homes be inventory

from XX.X% First gains which $XXX,XXX, million sale $X.X were which was quarter our XX.X% of the $XXX,XXX. a gain, on and was of prior from year the decline loans a quarter, linked mortgage decline

first of came to with customers Comunibanc consistent our the a $X.X linked of through transaction. year as over additional debit prior quarter us our up the that fees at million result Interchange quarter and $XXX,XXX were were card

quarter rules. income XX.X% fee and leasing than first offering $XXX,XXX residual customers Financial. as and revenue which was linked the Leasing less fourth small leasing $X quarter, quarter of million in throughout through the tax or advantage traditionally picks of peaks year depreciation was to equipment take up our Vision accelerated look Lease the

income our over brand over a became with newly increase Other negotiated debit The increased the agreement during quarter. quarter MasterCard our linked noninterest of that by over quarter and of $X.X $XXX,XXX first effective the result XXXX. periods was both million

included during quarter. In that in million per we revenue, other income addition bonus to higher received signing a $X.X our the noninterest transaction was

XXXX. Noninterest closed $X.X and increased increases million addition Comunibanc of quarters which April, annual and compensation was and expense which that the effect year Financial, of primarily Vision fourth attributable into third to the in in each go year-over-year,

compared the processing fees. declines were offset increased linked as expense, or increases assessments professional net expense X.X% nearly occupancy, in data saw $XXX,XXX Noninterest that quarter compensation in to in and and taxes contracted we by

increased and increased quarter Payroll the linked XXX(k) the quarter for expense. the and and the accounted from of in increase taxes in $XXX,XXX quarter. noninterest first largest higher $XXX,XXX Compensation portion contributions expense linked are typically

in trued the this assessment Health to increased first we increased insurance and levels our of also over our the by quarter from resulting the XXXX $XXX,XXX up compared resumed accruals quarter by and quarter basis. linked accrual $XXX,XXX normal our quarter higher of assessments Taxes year. fourth as linked during

previous the XXXX expense equipment decline of off related These equipment increases charged conversion Comunibanc. data in for in in system were obsolete processing of $XXX,XXX and fourth and offset net the largely charge $XXX,XXX a contracted by October we a onetime of as occupancy quarter to the quarter

Although to with current professional consulting debit fees includes for our new declined linked quarter, agreement. assistance compared a our brand quarter paid fee $XXX,XXX MasterCard our

XX.X% of Our and XX.X% first linked the the XX.X% to XXXX. compared for quarter was efficiency ratio quarter for

to focus our Turning the balance sheet.

total or by loans mentioned, million grew I rate quarter of annualized As an X.X%. $XX.X the during

the nearly we demand solid type every had across led in loans way, CRE our non-owner-occupied footprint. While loan

manage million were X.XX% originations average loan million sheet. of quarter. We and during growth of in originations lease Included the balance in our lease $XX.X $XX.X rate sell an to at our loan did our

our undrawn ended production, mid-single-digit construction giving $XXX.X portfolio the us our that a quarter at lines for with million loan we first Along quarter strong grow will XXXX. further loan at confidence rate

loan As mortgage is I stated earlier, down. production

remain However, we optimistic.

quite sold pre-approvals. and Unfortunately, are and we still -- remains houses is cash pipeline buyers. to our solid, seeing Our few across quite bit being housing a many a of inventory are footprint tight

beginning program $XXX.X million and our These deposits by checking side, that offset and deposits personal related tax brokered Increases deposits $XX declines to saving in or the million. since increases year. were were On the increased business increased our the earlier. discussed income partially funding processing total X.X% balances in million, I $XXX.X of and

with activity of our tax volume years. is program The consistent in prior

the have not long balances tax program compared rates, in were sheet for $XXX.X million our to average interest as our in years. recent first $XXX.X million this of they remaining are during on funds accounts XXXX. The balance quarter quarter higher with the However, as

million uncertainty months we X.X% prudent that move preserve million of CDs recent Home $XX of mentioned, for and thought in or CDs Loan our order I Federal $XXX.X maturing to an and events. million capacity the March, the filled overnight X-month brokered we by Bank, XX at given late As created replace a X% brokered borrowing a $XXX

$XX.X March While them. reduction classified million sale the bond and unrealized XXXX. represented as in for at all $XX.X XXst, our available with continues of a put higher had since interest This of to of portfolios, XX, unrealized rate losses pressure December environment million securities on were associated losses

with quarter at X.XX%, regulatory capitalized X Tier purposes. the ended for our As leverage we deemed a well result, which is ratio

Our X.XX% ratio tangible at common X.XX% to equity at December was XXXX. compared XX, XXXX March XX,

offset solid and capital Our quarter. our adoption million were $X.X CECL on of its impact partially by earnings during our the

Civista of Two important repurchases. capital acquisitions. goal organic strategy continues to and remains to share dividends our from overall capital create capital the growth to payment to support be and have potential adequate and continue earnings parts our management of

$X.XX acquisitions our turmoil, recent our during share do continue any quarter. the continued per We dividend the not a market and tremendous our believe given And to we stock shares repurchase is during did current We value. quarter.

quarter with of solid steady growth summary, pleased loan earnings, are and we another quality. credit In strong

on inverted yield fueled all the sheet liquidity. the quarter us, and rates concern deposit curve balance challenges and of with both economic of loan two failure for first banks presented increasing The pressure rate industry’s and put the short-term

take customers. As relationships new some banks with up strengthen pick and to will pull existing this of advantage lending back, deposit Civista customers our and opportunity

Thank may for And to we’ll questions this you have. attention your any be you happy now, afternoon. address

Today’s [Operator Please comes go McEvoy with Terry Instructions] from question Stephens. ahead. first

expectations just accelerated focus I -- make was you but want there. on leave when deposits pace I refund tax capture kind will the accurately discuss to year, of start think mentioned the off the balance Maybe you at this with all with sure your I could an it just sheet? moving deposits,

I I tax balances think years, in similar December mean, $XX quarter mean little million a are last Yes. two deposits in is still a quarter the for Rich. Terry, to phenomenon I the and of this the bank. it’s one part. while maybe year, had most And prior in we lower.

around as that they the money, will, that it that ball is there hot I has don’t if don’t hanging out. crystal go is as around helps. know So hanging as if But It’s years. have. prior you a -- I been good all long in

well, And revenue? be is increase. as a run VFG, and of good rate Okay. and the Vision, will kind a a for that Thanks, Rich. good the volatile million is run the equipment as rate the $X up then And was year that or then Maybe progresses? down that depreciation

the be will that would first... course to year. grow with again, of And but it run was it how I good the do leases would has And operating it the what slowly keep, of think depreciation a the over pretty we the rate. originate

a The year up increases. Their higher. little revenue will as bit run should the rate be pick volume

that think the particularly I usually quarter rate quarter So, run be higher, in the strong will is industry. a leasing fourth

your any loan how Over markets? would Maybe discuss portfolio are your investors. concern last portfolio that quickly. half with the one on is CRE, a one just among concerns portfolio it’s back in there real bank and out Could the -- push CRE you you

Stark. Paul This is

Overall, pretty diversified to are type and done deep think good construction. where biggest the space dive we’ve the And we’re and market. areas office We on bit that feel it’s We our of by have quite at. across people but estate, portfolio. point our I pretty real a a about

We a But more little they’re haven’t haven’t stress finished any all because come and deterioration, seen any concerns troubles. really interest input increased all Clearly, strong. at seen costs get They event. any reserves. any without should there’s of systemic

is around think I it’s estate metrics Terry, Chuck. our real Yes. mean commercial don’t ever our stronger. been this I

Cs, of any about in lot not deterioration portfolio. I’ll stuff in our the Columbus X a Cincinnati. read But of Cleveland, any and the You real the of really Midwest, seeing you national estate. are especially in in news X problems the tell Cs commercial we’re

just That book I diversified. there’s add Terry, very is would no that And really concentration. well

type we’re doing a downtown office our the over office of instance, For portfolio little is -- X% isn’t office that stuff. And high-rise X.X%.

So, we feel good about that.

we big retail, retailers. the box no On have

So, about that we well. good feel as

how monitoring is that goes portfolio monitor that really And actually that diversified and on. we of accolades regulatory about think we no book extensive from into with our the we get concentrations. So, well do agencies monitoring

you. And next question KBW. Switzer Please today our at ahead. Thank from comes Tim go

Perito. Mike for questions. I’m Thanks my for on taking

First off, forward the to run can a if purchase the was good of that’s you year? accounting rest for give us and what rate the impact going NII

basis points. X was it think I

First of all, talking. I’m

Okay.

it Yes. That would be a wherever good run rate was.

help did of of think And about the compression talk it quarter. not rates, by Can this maybe beta is increase the trajectory Okay. over going as about on What the think deposit or can to you much year, you are it there? as magnitude rest if the us NIM the the stabilize? your expectations

this mean, quarter basis-point how rates. of in is grows. if XX% little is And this or us week first it’s move but a ton. loan -- I Rich, a portfolio for got what got, do basis week this of after bit cycle But contraction not we’re of to Well, This you’re we we another next a is with mid-quarter lot kind think, XX to And deposit, the the contracted kind We said, loan Dennis has asking points next. aggressive probably of this the best on deposit like that us. Tim. in again, anticipate

have felt, the And bank to because we we deposits. we basically to deposits, keep got failures aggressive just failed of do hey, we everything need can banks

rate So to interest do will we think little the more our these on push rating, did think increase a little little if much bit, bit. a side get that don’t us side. a help on the we ton think next Plus We we margin. a have benefits We can spreads we we lending net during deposit the think we get we’re frame. time don’t of -- aggressive bit actually that

of past, We in crisis. -- the back in times to tend pull banks big generally,

that view an us. So opportunity we for as

and pull as little are make borrowings may bit, I that they of because And push can’t opportunity the people some may are us and curve inverted which high, going to back banks those us spreads a yield are enough loan short-term borrowing, that some gives think help rates spread, to our well. they feel

Yes. the has Okay. comment believe tremendous made your still that helpful. stock you And you value. That’s

in activity forward? shares able we of of bit any kind being of didn’t like are us You a cautious? And because a to expectations that saw lot any this the of give going March repurchase you Was quarter. parameters little

Yes, absolutely.

one quarters some a in the off there. we’re think two in we row, I -- events capital acquisitions coming two March, so used in

how felt concerns we right bit, around things now So the well received and in -- would in March little of we’re liquidity the a We just to recent be to that let events just continue is going evaluate. know and trying didn’t kind settle capital. given the down marketplace and to to

Yes.

my pretty M&A there, last open but leasing bank a other reasonable, quarter, probably think. then, any fee guys I your you was to, possibly that question willingness seemed plans businesses And purchase little think overall? more or businesses other I last or to

Yes.

in I like a -- little a as more get think we’d obviously and we efficient bit interested that’s because that, remain we think more to company. we size get

more where I and makes things think it that a bank difficult. lot are today, Given values

So, overdrafts partners mean that’s pressure we’ll the that. open to additional are doesn’t talking of our to like exploring continue. or But other lot It strategy now, other of -- potential And we certainly with think and pressure, part fees a under certainly fee-based businesses. right I still we things stop we under bank fees is leasing and acquisitions.

go our comes And Manuel question next you. Thank ahead. with Navas D.A. today from Davidson. Please

a that I couple to on. just things you catch wanted touched on of up

of what those Do construction also going to yields you that’s down. to still of have an And you be have going be? kind So idea those of the amount are drawdowns? a good drawn of timing

-- quarter. but in no, this would I will of I don’t new obviously, that bulk will you, just I right over, spill year. front say tell last into me, couple approved especially a calendar would in the next projects in chart it year, down it’s some of mean that of we’ve stuff of I the that draw have the

And where rates range you all on I we’ve are and down. in I’d been, probably in of the higher that. stuff. on I that about, line Maybe and been some draw to mid-X all on the rate what stuff would -- But mid-Xs floating approved tell say, say, the it’s already that’s in touch a think the I’d construction

originate -- year. didn’t of the over we the Manuel, course that

construction, that of some because the we lot go So of a stuff. to will market eventually perm type mini-perm do

goes that nonrecourse of lot a to So, -- as a well. off lender to rolls

will not on goes our been course sheet. balances to balance the all like year all that year But market. until the perm eventually But that of last So through hit stuff. will it’s of help this it’s and our it does put over be and

It’s right. to like a Right, about that’s the downside that bit that a to a think protection of little kind guide. -- of -- growth downside how wrong it. Is to or... Is loan

that’s think I No, correct.

else, everybody selling I a not little up people I like think the acceleration the company, just products seeing of as we’re large a think because from payoffs are same bit. rates

changeover. We’re than quarter our or looked large less before just came $XX at were first were we payoffs million they this not last year. as much that I seeing quarter in, of first

that. guarantees, go the on get still people going. projects tell the planning for to seeing large to they’re you that have still to do we’re perm market So, of little they’re off and I a and going But go stickiness the the

Okay.

in It funds some the able send is accounts. side. like to sweep You were deposit to

$XX What’s are -- much those? those million. those do wealth think have roughly it in of management sweep how you Was I around like accounts?

department. right? wealth So, went that about bank the accounts, left why sweep Manuel, actually and management into those our are That’s

Right.

they and higher were depositors basically one basically just -- were buying. seeking of worth were year those is treasuries potential just those buying So, what were yields, they

we into have them was rate, higher due, want we’re option that they’re our to than basically when just treasuries yield. those bank. the buy we didn’t little come -- for have higher at an wealth back a those like they to So a to We And them when feel refer those thought we to get there better department, rather -- bank, that going -- money the that leave them. one-year a pay that now bit was we and -- to for -- opportunity

for Thank perfect makes -- makes you clarifying. That it sense.

little In pause? the terms NIM -- a If of then kind this the of coming more little rest during pressure about we just across and NIM bit of where go of post you -- of we one pause, a kind does so the get hike year bit talked the quarter.

Yes.

I stable. of have really doing think, how are a our loan portfolio and to mean history lenders loans. fast transactions, we pretty It bringing had about And it. fund relationships. grows we’ve great deposits I of on those depends with how along our kind just do we and

the have how we the funding a we And so, put deposits for to loan we make fund ratio, sure. with. will the much But yield go they in for inverted pressure get that certainly stays, expect to loan-to-deposit the curve on and when XXs how and margin

Today’s [Operator question Group. comes next Instructions] ahead. from with Ben Please Hovde Gerlinger go

on want question, just Terry to up kind -- just asked of a way. a different I follow asked

that So the income, I watermark is get quarter broadly with ramp fee the year. kind of is throughout the low, the high the the first probably quarter leasing fourth and and

the of, the for and million onetime. to So $X.X do exclude to million like integrated seen is let’s total Is a call to you with? now $XX assume it, the fourth is or $XX you bigger million, fair somewhere let’s that it’s work it think quarter have first and we’ve that clients more fees call ramp it, like quarter around potentially

product? of quarter a million $XX mean You

No, sorry.

year. full the For

probably close. that’s Yes,

Yes. think I pickup slight a see mean I mortgages. you’ll in

on in slight gain I see think you’ll pickup sale. a the leasing

fourth the little bit normal bit us. that quarter. that think is on the in first moved less probably sold a I leasing of bit in been lot the little gains a a was than a stuff quarter Rates got little the originated just of because against sale

much on would as get. you not sale quite you’re gain normally as So, getting

are during that. I income anticipate I -- we’re So, pretty slim inventories a that said, lot stronger. management Like though the I around little getting of -- bit would doing even anticipate mortgage a and to piece. a a have spring that mortgages across expect on most it, pretty of season, I is few in line. first marketplaces, But rest more much is selling think, our we the of

there, have we money the tax remember, Now too. in program

So to in have think, the a but -- quarter, a we have tax because do we’ll with money you number, equation, to get the bit pencil better of second that that back also to so. we’ll probably there in get put everybody I in the little

Historically, what you’ve yet. different to the of seen forward, see what be maybe told again were if that mortgage But you’ll is we kidding you going we with the we’d exception piece. experts all leasing

We’re get still new arms kind and of still part at, we’re that our trying around of to it.

just to how of So and it’s going we it how fast yes, much grow. matter It’s a it grows sell. of

year I about kind accrued we learning throughout think that’s No, get the associated as year? helpful salaries, it the here. with of when seeing already that -- we’re think was of do and kind good. go is like the That’s full parallel that, of Yes. a expenses definitely the a But or on -- all within cadence you color. you

big They -- are salary all commissions. are people almost mean, the almost I

So that’s do they kind do well. when of nice we well, in that

Got you.

Okay.

it’s as kind the same mortgage. of So, comp

Okay.

so. Obviously, to just the probably we’ve will that going X bit or to swaps, lock swap too, over too, a piece, answer rate we’ll try It if longer we piece see weeks term interesting interest more the not. that And last Ben, little be side… push and in on swap had forward continues or

now rate right to the that be A shorter to compared one few cycle. advantage and of have on taken interest people

for lastly, bit year? then a good rate be would year-over-year. And tax full It’s a moved little what you. Got around

quarter the XX.X%. For

probably amount And That XX.X% would good to of revenue, manage that a I number. fair. say down. a would We’ve and tax be fair got is we preference try

with Please next question Janney ahead. Dan Thank you. today go comes Scott. And Cardenas our Montgomery from

just the a or some guess, rate to is there bit? at run in guys look to as kind moving little good those I expenses all is of, here, numbers build room a for you off quarter I maybe number operating first of

us said MasterCard a have the And are helps program. $XXX,XXX tax like Well, and contributions the during quarter, for always consultant XXX(k) the too. that call, payroll a first the the in big fee Dennis with we

that of the we out go Xst some April into with on And gets the of part effect April. or raises balanced that first

in if close that you budget next quarters, guys going forward, pretty to penciled be what a for our would quarter So to three be. is $XX about the million going

think think a That’s of Okay. end questions And you. if All couple you how going deposit them? growth, broker is helpful. organic you And through more deposit the do, as you the there. I year? to approach guess Thank you how can Do kind of sustain balances at growth? be about deposit I are looking then right. should you of that or

Yes.

I think we think can opportunity We’ve going sustain us. little an is to do deposits. aggressive. Again, this gotten I a bit for more be

whether lot of we’re requests back we’re more. good going go going say, to little like we’re going bit not, having back those things We loan we’re been loan, look, or that certain So, banks that. their hearing always to deposits. demand a to have a a new in pretty lending efforts pulling borrowers, they’re and existing at borrowers, gathering When to do and we are

in game, we the and the deposits be to to deposits us. asking we’re more them to game, still We’re move but need in

relationships a So, we’re we play really try that off there. to little going have to to the bit business drive more

we So, those going work of are we’re can We to know now, really think a premium relationships. kind deposits sustain. we definitely and at

bigger competitive everybody? -- it your right. the I side mean... pretty imagine right on smaller intense I banks in market, it’s banks, now. Is more factors, I the All And mean, the deposit is

will to see We’ve that. short Yes, think I tried everybody. really specials. stay We with Everybody a offering continue the Huntingtons bit our we it’s different certain of world the strategy. kind little to And do strategy. of has

is we to the because that need want don’t it going lending to very side. we’re to So, continue competitive. grow on we But --

of relationships, to of some least we’re to the much those that money. attract So, hot money, cheaper really not so some push trying going at

And a our is go Please next question today Manuel follow-up Navas. from ahead.

expect Is kind on or the before wanted it fourth It’s year? moved you I addition, of lower that on quarter that? just a to you’re X.XX%. we going loss CECL up definitely because the the reserve level last loan provision forward kind at check should Hey. right of -- in side? level up the of bit in little that of the stepped kind had What

Paul is Stark. This

I new of CECL kind methodology. the think, we’re to

be look So changing. we the to continues than we at to might were profile the I probably really it out first risk year. and where -- I you quarter’s even don’t model that experience. strong, machinations of it profile, we’ll don’t to of The risk higher after see if have expect the the end -- the But be at any

I mean, number mean, any for I that all of don’t for know losses been provided I we it’s quarters. growth. a

It’s all of had like We quarters straight at X been growth. X point recoveries.

loss to an type Even any opposed was though normalized we quarter really the acquisition of as to this deterioration. small took related

we profile strong. to that be So to continue expect

Yes.

to number it So that stay close where going pretty is provision the today. probably is around to --

Ladies over question-and-answer for this back and to concludes Mr. closing to gentlemen, conference session. turn the like our I’d Shaffer remarks.

In we with you. I call. on thank do to are results. Again, those for and our today’s Thank first closing, everyone participated that pleased joining want quarter

very our deposit core I approach solid positions proven credit to all us success. history, our franchise, disciplined for future strong Our well pricing think deposits,

few of a in months all our I to again you share to quarter look forward second results. to talking here

So, thank for time today. your you

today’s concludes This thank attending sir. you, presentation. Thank today’s We you for call. conference all

You have wonderful a may and your now day. lines, disconnect