Civista Bancshares (CIVB) 28 Jul 232023 Q2 Earnings call transcript

Good afternoon.

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.

to substitute which GAAP the refer supplement, intended measures. may not but most management non-GAAP are measures, to Additionally, directly comparable the well as The company's reconciliation of information available also to the be financial non-GAAP GAAP contains measures. to as press quantitative and today on discussed the other release, website the

be At any the recorded Mr. Shaffer's of you be will on Civista call conclusion team made available take Civista he the and -- Bancshares' may have. The and website questions management will at will www.civb.com. remarks,

I'll turn the Shaffer. Now call over Mr. to

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

This months for per morning, the the million per XXXX's XXXX, first million for over diluted XX.X% of share, a net XXXX, we represents $X.XX income increase XX, six our diluted $XX of increase XX.X% and $X.XX represents reported the over $XX.X or quarter second ended in which quarter June performance. or net second which share income a of half

and the continues quarter year-to-date for to earnings. X.XX% was X.XX% our Our margin, which drive

is our some industry, However, rest margin under the like of the pressure.

XX during during quarter quarter X.XX% The our was year-to-date. yield and increased balance funding on decreased was basis and year-to-date. the Our to cost X.XX% basis points assets X.XX% X by the earning to X.XX% by of points sheet

with brokered the surrounding fortify for our our additional Home Bank. in Late CDs CDs, our $XXX.X capacity order the brokered we and bank balance This to liquidity locked me $XX and around XX-month maturing failures, to color preserve brokered the first CDs, and provided some $XXX overnight of replaced deposit We sheet. Loan an funding million out went Let Federal million paying X%. paying of fill uncertainty up additional strategy. nine-month the X.X% provide borrowing million quarter, of at

was we the raising maintain primarily We and balance to began important money bank interest Beginning quarter, to first this extremely time failures given deposit in also our March. rates in balances. felt larger the market customers

Excluding related to tax refund the increases balances deposits program, declined increase processing December. our in deposits brokered X.X% just in and have from deposit our

points broker our deposits points the a deposits, of result, XX excluding cost to XX of cost from increased As while deposits, quarter basis quarter basis XXX increased during only XX points. our points, basis basis from to basis XX points the during

deposits, deposits, brokered of was points. XX cost excluding basis Our year-to-date

basis deposit XX funding of X XX points the beta, was excluding the last our over over Our beta was points and overall brokered cost months months. XX last CDs, basis

Our XX points. has the consistent loan beta been basis over XX-month cycle at

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

our This of of by lease the primarily implemented changes the third not originations fully result anticipate sales the were internal also lower our to gains quarter. in earnings in sale impacted the were of leases. made We sales Our which resuming process May, on quarter-end. was until

sale loans $XX.X production. $XXX,XXX. of and $XX.X VFG lease typically our gain XX% we the For We quarter, originated of of million sold a million the for leases and of through target

second our a and confidence reflects consecutive and $X.XX ratio earnings. increase we is share This increase a $X.XX our This earnings. based also on share. XX% quarterly second X.X% increase is dividend to quarterly represents in per in in our our payout dividend announced dividend quarter Yesterday, a our per our

XX.X% period a Our year increased the to compared year-to-date have when earnings per ago. same share

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

$X.X the million declined year-over-year. income linked processing our fees XX.X% or non-interest increased quarter, tax driver decrease comparison income $X.X linked was and to the million quarter, in The the our of the from timing program. quarter of During from primary refund

first second tax with program income prior quarter. in to the years, was $X.X Consistent from quarter $XXX,XXX our during compared million, the

or negotiated we million which to included newly income prior also also the million non-interest are comparison as during in the We income. $X.X of year. $X.X received agreement was into part first Year-to-date, increased a bonus in debit quarter, XX.X% the brand non-interest other

of The residual the primarily payments made lease primary sale brand equipment lease are agreement. XXXX. as and the addition up driver in fees the the from received part VFG and was $X.X end was previously revenue operating the fees of debit on the These gains included term. we million of of bonus $X.X at in of million Also late lease mentioned

loans declined to sale of loans $XXX,XXX, previous was the consistent revenues quarter. were the prior and our the mortgage on consistent on the gains year. mortgage linked million $X.X sale year. Wealth Management a quarter the represented slightly Second quarter from were was decline gain on with year-to-date, And linked which with quarter the compared for year-to-date and the XX.X%

an non-interest of will the these expansion we we footprint across continue diversify anticipate to market income. for as uncertainty our some and view opportunity While that services time, grow

were the in to expense and increase Non-interest assessments was to quarters of in and quarter year. third fourth comparable non-interest Year-to-date, expense attributable software the the VFG of in XXXX. increases fees. increased $XX.X linked over million maintenance prior Comunibanc million or is acquisitions quarter our compensation of XX.X% the FDIC and and as Much professional by for declines our $XX.X mitigated of

that over benefits additional Our our compensation million to company. and expense The the is increased due increase commissions increase under Civista of $X.X leasing an primarily employees. million end Comunibanc The term. to is and the and the due is in lease until owned bulk Equipment is year. new XX.X% VFG operating or to in lease $X.X salaries, the depreciated by attributable new depreciation prior of our

a due payment that expense increase to the debit other the was were amortization and fees increase primarily to in loan to intangible during our acquisitions. in Included marketing of a noninterest also provision in in in The in our by this due deposit-based new consultant XXXX year's $XXX,XXX required unfunded growth of The agreement. of our related card CECL our commitments first quarter. professional $XXX,XXX the assisted is adoption negotiation

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

VFG. annualized rate leases $XX.X have Turning to the of represents loans total million, includes of originated $XX.X This our an X%. by sheet. by balance million grown which loans Year-to-date, and

led more lease loans were including sales. Residential CRE products, non-owner-occupied our sheet CRA, mortgage increased financing loans and While we originate anticipated lighter up than the as ARM Construction on-balance of estate way, our receivables due products. to real

below XX% the year-to-date to currently portfolio are our will mid-single-digit rate a June $XXX.X readvanced XX, million confidence we well lines that with Commercial revolving our credit of not balance lines have balances. loan our production, adding a at rate over at utilization of and loan pre-pandemic Along at XXXX. grow undrawn construction were our

our program was related XX, ratio, processing to tax refund At XX%. deposits June our excluding loan-to-deposit

or in strong X.X% relationships commercial year-to-date. million declined illustrates customers. our year. adjust the increased funding, If On deposits have the believe $XXX.X increases beginning and our and deposits We this we brokered total just since we program of XX.X% for funding side, with the retail tax the deposits

$XX.X June Noninterest-bearing If or related focus, deposits tax deposit demand up XX.X% accounts XX. deposits million program, uninsured our making by continue XX.X% accounts FDIC XX. own total those to at of exclude at were our be to a our the Civista's June we and of

cash securities Our were $XXX.X XX. and June than which at uninsured million at more our quarter deposits covered unpledged end,

had our concentration XX. municipalities in funds deposits Other at with we of of the no footprint, million $XXX.X public various across June

with to significantly interest Civista's characteristics continue is low X.XX%, the our deposit for were cost which million It margin XX, is in and We as at well leverage unrealized $XXX.X losses ended franchise associated We regulatory June net million one quarter classified them. purposes. deemed securities our $XX.X ratio to of for with all profitability. had Tier-X contribute our available of sale. believe and our most-valuable of capitalized At peer-leading

ratio XXXX. at improved X.XX% tangible to at X.XX% to XX, XX, compared equity XXXX, Our December common June

earlier Given of thought this were the it's report month, the hold being results. failure safety off quarter entered Silicon Valley of of the report during we as and first stock Bank happy banking received to we am after program repurchase the prudent fortune and on our Cleveland's and I of the with Federal good Bank, the exam our we Reserve Signature we the our industry, turmoil pleased and the in soundness very that exam resumption to quarter.

resuming anticipate now stock released a program continue We earnings. have and believe our that is to our we repurchase value

We metrics which primarily our pressures expense and the and credit did economy $XXX,XXX the is credit during face, growth. with was provision to associated stable. quality lease make our quarter, the strong uncertainties the and an loan Despite borrowers our attributable remain

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

for allowance XX. to to XXX.XX% June losses nonperforming our at at increased XXX.XX% from loan addition, In December XXXX loans XX,

generate compressed margin more continue we anticipated, although remains summary, strong and In our to than our healthy. margin earnings

loan crack deterioration quality solid our quality. see our opportunities and footprint to continue growth, in material no We across

our evidenced by per in creating the share which increase to Our increases is in on and earnings quarterly dividend. continues focus X be shareholder value, the our year-over-year

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

Instructions] the Terry now McEvoy will question-and-answer come with [Operator begin Our will Stephens. session. from question We first

now may ahead. go You

of second afternoon, deposit we the up cost quarters quarter, second about Good of in and run everybody. we Hi, come well? costs of funding for late Can coming just should the trends the think you quarter. year? definitely deposit in outlook over thanks. ultimately you the about, strategy talked first your us the kind -- how about net And interest in margin think maybe costs this through deposit reminded Dennis, as the saw half and

Yes.

added deposits think, the in late first adding be like I there big brokered going we're deposits of a with we slug quarter. not to

with that throughout going the So was year. of to end XXX that's a be now -- the us

of We're I see NIM, don't remainder move quarterly think, expect points. significant forward contracted we that throughout we year. think, NIM don't as basis the big contraction, NIM I I that to not don't some think decline. decline a of the a about We the to the going but So of that expect -- XX

really our of that's that was quarter with this deposits. miss where just that, slug And was

point So of here. move reasonable throughout we forward basis we go XX, little a think the year amount, compression as maybe probably more half that bit as we -- XX maybe margin is

change a the selective more guess of on sheet being behavior for about some lending And optimizing larger gains just wondering, And advantage that their and market are new are you I'm Thanks Ohio-based seeing balance competitors? you rules. calls should last continue? how talked on given take then positioned in I banks that. larger week, capital in your of their to share

you do to stuff? Chuck, around competition and give some color want Yes.

definitely landscape a now. really that of seen we there right of we some fuel to markets still out in opportunity and of the We're perspective, larger kind large Yes. deposits the perspective, those gives banks. regional have banks. And feel the there's Terry. other to fall competitive -- But We're still especially of try being some some Obviously, those out really still business. deposits for that deals from the of the those lending Columbus, advantage lending community with ask Cincinnati, of in like they're business regional being from the of do us competitive out Cleveland, the all

relationships. Terry, then adding are we And new

some and also So can fund loans, securities yields, fund that we're deposits come portfolio from loan will I these would that we turning them that with and We on our be books. side, do getting we have have we're way of push new we fund in. do new seeing think loans But as new look renew as and to over tried our there. to loans loans lending one the

are We pushing our loan spreads.

been in just are this spreads. have and pushing thinking that environment, pretty our at those teams do effective we We can

a this that push have some those of curve And out bit. with outliers surprised I'm yield definitely, not of from there. back we the is point. doing surprised the to although at spreads. everyone players, that pulled some some think, But I we quite the inverted, banks still And see I'm bigger little that so have frankly,

Great. taking questions. Thanks for my

Cucharale from next come Hovde. will Nick Our question with

go You may ahead. now

How afternoon, you everyone. Good today. are

Hey, David.

there. Hi,

Good.

your have about Can Just you question us the any term? And expenses. a initiatives near on you think help expectations the on sizable horizon? if in

I Hey any Nick, really sizable this the is Rich. initiatives don't get on horizon.

million each balance the rate year think, probably is for projecting next the that kind quarters. of I of the of run we're $XX the two

significant, So know the expense in what this if I new in quarter. think don't anything were big trying there's things any don't I I'm think there's there. to Nick.

jump. FDIC that Yes, had assessment gone a And think I good the was pretty up.

XXX, I think up or maybe XXX was XXX. that XXX --

Software the stuff expense was more -- that there is things that's software data more I think think, -- I Those we're when expense, fair slightly. adding. money. different cost CRA little analytics just up bit and we are evaluate done a we've lending absorbed we us and In

And so, rest Rich have really impact that as but forward move of throughout don't like we the initiatives any the said, expenses the year. huge should we

makes we're operating number. we significant look going about we call, that big the that I move, kind reaction we've but to last in the look continuing common mortgage talked point But guess, did, in certainly, if to some on of know wasn't fall-off don't the staff, everything Again, as is Nick, it sense I it but at to reductions at forward. made loan And and not a lending.

Yes. of And we that absorb see. increases some those

your That's growth rate? and halfway Can translate a the us size about you then And year, help year so of how the pipelines think very growth may point that solid helpful. pretty full far. loan into at the of

-- Nick, may million good mid-single estate looking is still our that got construction range, we're like feel million Pipelines program. sitting doing into million that $XX are in some I good comments his still midyear. but would more where consistent. seem really they other we've looking the $XXX about at $XX growth of it's is say may got increase $XXX pretty feel commercial we've into tailwinds would in side. on that real we're year, second over availability we're that like a the half, down construction little year. last I from forward. single-family second construction, slightly coming there lot Chuck. mentioned the of That say Dennis in but out a million and the the digit We be

follow-up construction. a that Columbus? the on Just most Is in of

metropolitan can tremendous a They have city. everybody chunk on side, large multifamily. getting build the different don't the tell areas, there in fast can't house is town units on moving I but construction. We've tremendous breakdown it in of and other for projects either enough or in Intel, had to that's nice-sized -- to ready work appetite into multifamily that all or of you, especially a enough I the

the and questions. color you thank my Thank for Great. you taking

You, bet. Nick. Thanks

Tim Our next question KBW. will with come from Switzer

You may now go ahead.

Hey, good afternoon. Thanks for taking my questions.

Tim. afternoon. Good

I real guys purchase of one quick. first impact accretion had, NII NIM? the just you the accounting have or The Do

I do, points. my memory. think basis was memory we I do. X And It basis from was points, correct, X

Great. Thank you.

Difficulty] Tim. [Technical

position? in finding do banks maybe back could talk talent pulling a to the follow-up that had something opened of larger all? the the road any opportunities from this some on Has happen think lending. if banks that's about I you to the continue some down that Or new at you

Yes.

back -- to time throughout added or does in we any there's we think banks disruption organization, production I the had the think, back, when pull talent there And add organization. I that this support on recession, the is think both and I side. us give the opportunity big talent great

we continue for If So, would that. that look look add think revenue, to we would it at definitely we opportunities.

loaned it's because pretty now, challenging just you're bit a well Right up. little more

as curve view bit for figure them; it to But inverted, particular, to challenging staff. it how out we the to adding opportunity, a in think that fund got make So and so that. when that's you you're with it more yield going -- does I comes little

Chuck. Tim, And we're seeing, is this also

mortgage start some inquiries direction side. make float the on residential at least talent our Some to

as lot know, bit, don't market a a of sell. the As of gets have the you times same tighter array brokers to able little products mortgage be the to

we got so, staff than larger we're a we're our had able what we'll to fill. trying looks openings with starting And producers see do We've like It in some service. that that be to few to previously. that

anything commission-based really that those us because positions. cost are And doesn't

they generally paying So for they're add generally, when themselves. originations,

on a a quick give credit can Yes, Right. And guys outlook. you update then makes lot us the that sense. of

I CRE think exposure, to metro can and loans? you think, like X% I But guys last seems provide about quarter, you your it's talking Office said in everything areas. the X% any updates were you major of like

would hasn't Paul We outlook the is This Yes. changed Stark. -- that say I significantly.

opposed is I market. think the obviously, of as watching more outlying we're communities Office the into the vast it. We're office our centers. kind the make-up space of diving the of urban majority to But in

I think Cleveland. well. high. of, properties been center very they've overall, Occupancy of the that kind say, we are or have performing actually let's in only But three remains four

thing know happen our in up. two when to are going what's leases is years a XX% only our of going -- about few yet We years. the to The in don't -- have only don't I you next maturities really properties are think, leases have the

Residential So quarter-to-quarter. good, our the areas really hard perspective. change now, in solid. there's not us but it. It's make numbers But top pretty right there, any haven't know I out now, consistent see I'm seen And real stress that don't that I anything. to that of pretty work anything are dark on seeing stay right stays landscape.

pretty is portfolio our diversified. moreover Tim, And

So retail, office, CRE pretty diversified. multifamily, when look between you buckets the it's industrial, at

areas. real concentration no in those So

loans Do too Yes, Okay. nothing you have in book? total surprising there the percentage office there. what is of

This now. do. We right s Rich,

healthcare, I we've X.X% yes. office, of than medical is offices, less guess, then got pure X%, just another under and So X%

Less than X% healthcare? in

number. highlighted -- looking numbers. at the X.X%, I'm at maybe I'm It's Yes. wrong growth looking X.X% --

guys. from all me. That’s you, Thank great. That’s

Tim. Thanks,

will D.A. from Navas Davidson. question with next Our Manuel come

go may now ahead. You

quarter? kind little it color good just of NIM you With your clarify, you in afternoon. that there? trough do to of a fourth the kind think Hey, Can just add outlook,

on like of it kind does, what Manuel. but Fed think And yes, I what is This I the Rich, Denis said. depends guess

fourth went of think quarter chunks deposits third I first if up only the you look though and of in And, our second see or the moves mean, of terms might similar you of at the deposit first those XX the we cost stay this from the non-brokered we be I Fed moves points we that place. will in kind were the are basis and funding, that in assume second the the in in in quarters, aggressive funding, And big move even side. quarter. deposit and place feel we would if the on made quarters, like our

loan And expansion, cycle, pretty points been of X the basis consistent has again, expansion have over betas -- that about quarters. of been our XX points so basis of X those each in or

barring toward So barring happening, of But the say year. trough crazily happen. things the happening, fair would I probably that's but a anything a anything and crazy crazily statement, that, end

more was thought We're All was that keeping kind -- yield past those why seems more? of move of quarter. loan would higher wondering didn't I rise about leases, right. thinking you much yields. of even usually loan the I was production interesting just I yielding. of of they on It's it maybe have like wondering, talked this didn't that quarter. kind end are

I on think, I factors Manuel. a couple of have that,

was of large couple a first end we early April, May. the May, in month The of of had one payoffs

down bit. went actually a balances those So little

back the of production in the come So in of a mid-to-late June. half especially lot did quarter, the

did earlier, -- bit mortgage I more talked lending the We little mortgage a rate. not other -- are obviously, side, product. on lending little bit are sheet commercial to to a expand than bit thing quite lower much. salable the little consumer but think, rates balance caused versus a on And the about as our the that we it mortgage

all and area the continues going, may we're little will had into it a happy So all, for production in up bit. continue our feel rates looking we that those But come flow, we're line to we in to our of down trend some and like piece where that quarter. growth rise,

piece seem will as a originations. new go Yes, points what a be far have XX production ball to, don't pension to as probably as but basis to crystal on far we I month as lately them those a up XX great

The I portfolio then and loans, the payoffs early and those Chuck in not think mix yields quarter it the high, hit right the residential as rate as people little the is where more bit Well, now head. are portfolio on opposed ARM residential little and those because bit products are rates buying right to products, are ARM a that lower. the fixed a

payoffs were negative. And not I even were The positive. were both think don't the payoffs --

then, building have one industrial a our sold good piece of had the CNBC We his for a business nice we went really And customers to also that change. market. of large

like in are your commercial What yields? new you

SOFR-plus much our up X.XX. -- new move some of choose rate starts as tell I far rates I people of a their up is floating originations probably from floating seeing three-year in would five, spin there. seven and that pretty would maybe the with even We're process at you're range some of to new you it. probably thought doing some declining, that between or sort Well, tell everything X.XX and that you, on with production on working the X.XX from -- in a as side or if

If the deposit quarter. I understand came I brokered side. jump early in to over the on the that

You increases gave ex-brokered. stats From just on what deposit are your here, from cost some costs here? deposit of thoughts nice

we'll the in bit, more again, quarter. think our but and we a think to of little that are going under They see pressure, to had I on big are today. holding I don't they're the stabilize we Well, second contraction NIM deposits

a closer on I think, just we're that. little

starting our a and And rates banks we five. is highest have a with now that, We rate deposit right have that of no lot that do X.X. there's found

in runoff first a little year. we that of bit we've the trying of We in the before the found hold months were seeing some to closer we as it Xs, were couple gotten deposit

runoff. little week at not not we're got seeing aggressive. with that We're other more we're deposits. every -- meeting our So Right we bit now, seeing X.X. a the We're

not never feel social We've the rate do advertised media So shopper pretty chased newspapers, or we franchise. in that's gone feel core that out the customers before. and we have in that do highest are We the We've rate our our loyal. this customer. deposit strong

they money and we're telling X.XX, Our "Hey, money And but month customer coming CD some our seven-month of is asking And special, alternatives accounts that CD them, they're interest-bearing us lower what of X.X got to they and to have. they're are the we taking leaving to that putting competitors from of noninterest-bearing paying X.X. accounts some are use, some that not and beat special."

to So we have close game. that in feel we -- in just stay the

depends So which those maintain corporate do competitors the value it customers. on this franchise But us is deposit what feel to there doing. we of are and that we helps have some

In quarter? appreciate I you fees, an feel you're this sales Do there's leases of next keeping you kept lease backlog to that. like quarter. said going -- extra be

what sale, No, being on not. if that probably because makes it to it happens rates because sell decreases. No. those We'll move, as harder probably -- loans

So it makes harder. it

interest probably and sheet. try the those, kind just good Their loans just balance we're are on on back capture So additional yields those. keep to some not going to going of rate go of We'll those forward.

pick think I pick -- this that quarter. up back here it So we back just

Okay. just a I run appreciate. rate I Is then? ballpark fee there like

company. add I I I at Gosh, I thinking we I'm what Dennis personnel mean, about changes the guess don't had I that. know. would some mean, said. to leasing

slowdown we So that guys those the of sales the was in integrate quarter. as for maybe part second in,

to sales back it's don't I'm for budgeted do we've dean -- that. you. for a -- trying you what the number think, into probably to I I dangerous

of all about to that? back guys, get how I'll it. about you think me Let

the Thank back I’ll you just go into much. queue. Okay. very

Cardenas Janney. from will Our with Daniel Instructions] next question [Operator come

may go You ahead.

Hey, afternoon, good guys.

Hi, David.

planned. in here. reduction in a portfolio, securities The couple throughout run-off half to expect a couple book a that of your mean, Just And securities we've of and row. continued the saw questions the last we quarters on seen year? in see we should some I anticipated overall was the that of run-off here the second

last and yes. kind Those would with and bought growth. some run of early middle recall, fund year, that. those we loan all of I of some letting the securities. bank. run-off short-term kind our use I we you'll Again, as we're Those were to them that if took at much excess are liquidity the and pretty mature, kept then of year, And not when say, through guess, next

our to. -- securities most we our subsidiary, of in We if have are back reasons bring and those to there are typically not don't tax investment

just those So year you've was mean that redeployment to I a kind you're liquidity the we last the those. that reinvest But are and of We'll bring last ones market. to the putting had continue we'll then one-off of early back. right. seen the

Excellent. then you sticking of in noise guidance business seen we've leasing by side, that year? And of of book where some could this that of get end does the with to terms the of truncated kind kind in your still Or are the be the somewhat? of

the it -- to we're leasing half fourth switching guidance. in up still the It's I picks It I that quarter. heavy second picks told think, we're up. to pretty business the that mean, pretty much the up. year. picks It's of new us, we're but

picking still think So up, that I the we we're it guidance to provided earlier. probably sticking

we million and QX, thought. said, in Yes. of this. on million Dennis But and earlier of what QX is also to $XX And we of I $XX kind line like kind they think about I said, But new in think guided How that? happen. that's they think, Dennis is originations to about had what best what we're That's had like of production in with guess. going our we to in

the me. of then should here year? in And the rate How second last your for good. be I tax question half about thinking Sounds

XX% think, good, we there. for I right? XX%. And quarter it's in tax I rate -- our probably XX% effective or I pretty again, kind what, was the been always that's mean, put, of --

that number. must at can't so head in but see You least, them, the they're the not right be

Great. Thanks, guys. it back. for step That's me. I'll

Dan. Thanks,

any no are question-and-answer conference session. remarks. back closing There concludes turn over Dennis the to Shaffer like to questions. for This would, our I further

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

look earnings forward our franchise results. few healthy. our remain quarter I continue our all, margins you to superior optimistic to share to in will low-cost core to and you Thank our that months a However, strong produce very I much. and third remain deposit remain results, talking

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

You disconnect. may now