Civista Bancshares (CIVB) 30 Apr 242024 Q1 Earnings call transcript

Ladies and gentlemen, 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 involves risks and uncertainties. Various factors could cause actual results to be materially different from any future results expressed or implied by such forward-looking statements. These factors are discussed in the company's SEC filings, which are available on the company's website. The company disclaims any obligation to update any forward-looking statements made during the call.

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

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

Officer is for This a and quarter million $X.XX linked of and company for Banc, afternoon. and the morning, the $X.X joined a President reported members Good quarter. Dennis like and net executive quarter from of CEO Chief SVP I'm XXXX in first company our Civista of diluted for Shaffer, SVP per would today $X.X our bank; Chief I share, of to our million we Dutton, million Officer by XXXX and call. our of $X.X of the team. decline Bancshares, the joining decline represents and earnings first from This thank income Rich first you us quarter or of Operating Lending other which

not we results, bonus debit our the While the onetime we did the stepped would benefit refunds, agreement. third-party tax million we we away from of $X.X that processor in have are be renegotiation disappointed our brand we and from there a knew headwinds as received of of income

income. process changes the we charge which we overdrafts, reduced implemented XXXX, late service in in addition, In way

the year. this approximately these income quarter of noninterest than result was a $X.X million As items, less in previous in X

rate our money the market on to accounts specials CDs higher and continue to from noninterest-bearing rate continue net and into checking market our interest CD our we pressure reduce on lower and put While money accounts, accounts migration rates select margin.

higher reserves as credit analyzed individually based loan experienced lowering requires CECL our on and allowance lease our increase model in We for portfolio our an losses also growth.

many be that of tax XXXX announced refunds in program. the the from and we reduced December, During to first third-party the starts $XX. charge have XXXX, Like $XXX,XXX, been services. would third away industry, $XX million and quarter to those of our the the represented this regulators. from second $X.X overdrafts, from process and Late on we during assessing way the Civista quarters discontinued in increased respectively, stepping related due scrutiny associated to NSF we Civista analyzing earned we accounts with and fees represented overdraft a our overdrafts of processor

We enhancing also how use customers are our with accounts. of the we their deposit on communicate

million quarter which $X.X included we charge and implemented declining a reduce changes increase revenue to reduce overdraft to and number $XXX,XXX XXXX. of by funding are course We of our lost of XXXX. these to the of to Our expenses. In anticipation reliance wholesale service revenue on compared borrowed service reduce fees, our charges, in will first this anticipate over initiatives revenue,

occur will impact, second we provided the the year. the our direction. am quarters. interest-free by the benefit need we on the right in of pressure program I the Although we tax replace during I'm margin most that first it balances as and anticipated funding exited headed encouraged We some initiatives results, these the significant and the over seen to and of immediate optimistic have balance are from the early

which noninterest-bearing quarter. difficult to the during it was interest-bearing migrating the However, evident depositors accounts, of into impact is the model from

X.XX%. the assets the This basis basis by cost yield margin During for XX at points, increased points XX our our by funding X.XX%, in earning in XX coming increased to X.XX% our basis resulted of contracting quarter, to while points by quarter. on

rates brokered of lowering decreasing increased During deposits, on spite excluding our accounts the of rates, CD demand to these quarter, deposit higher-tier of quarter. during cost some pain we deposits, and In our measured XX to by continued approach the specials. X.XX% points our basis

number our to funding. The for initiatives costs Plus reliance in a Ohioans reduce announced and to to Ohio banks. and progress by wholesale brokered and We depositors tax subsidizing to Ohio offering on Ohio its homes of participating program encourage of state have purchase the Homebuyers save of incentives in the

the will of basis of into XX up million part state to the program, at in low-cost points deposit participating the $XXX current banks. As funds rate

historically cash of balances wealth institutions. and financial have the also maintained We other our management clients

to We allow anticipate less our deposits the cash XX third currently $XX current bank at to on we basis taking rates move to the the the management us hold cash the steps of points. to able clients are wealth that being end we approximate funds funds anticipate However, bank. will million the into the positions, quarter. of Based by these of Fed XX

rate and indicative This X% growth, the our of organic Our of quarter. our believe in the grew strength portfolios annualized an organization. it we loan for was continued and markets lease is of at

focused grow pace is the balance of for slower, a levels. rates We XXXX. at we have at anticipate mid-single-digit on higher While holding this continuing to

our annualized was While credit experienced This as to on a lease hospitality our be based been model to loan attributable Both credit reserves classified as both and I that borrowers have cellular individually primarily required and overall our portfolio. several mentioned, remains continue an for in tower quarters. previously credit losses increase for our higher cooperative. a solid, credit we CECL allowance

to reserve. $X.XX XX dividend payout March of However, became available adjust dividend announced Based yield X.XX% we values our a and XX.X%. and during of quarterly a share. represents to a on necessary this price, the our per new information it share quarter, ratio Earlier, and collateral was the increase

quarter. for compared XX.X% the Our efficiency linked ratio quarter XX.X% to for the was

for quarter leases linked we if leasing our for to XX% the group, operating were out efficiency have our and related expense depreciation would to XX% back ratio However, been our quarter. the from the

quarter offset and subsidiary. quarter or were XX.X% or the These new insurance the increase million a overdrafts which from recognized Noninterest fee our the in increases swap and comparison declines previously bonus earlier charges the noninterest brand XXXX related fees of nonrecurring fees a expense to were a declined in offset our the for a income I in that subsidiary. of to mentioned signing income partially income in items, and $XXX,XXX quarter year declines in salaries, $XXX,XXX we During changes in other related service payroll year's increases from noninterest tax linked processing in refund were million prior million linked health in by to income. $XXX,XXX This income $X.X $X.X by were the as increase decline increase earned These the and first in that insurance ease increase noninterest or in $XXX,XXX agreement. represents the of leases for of included million $X.X including increase year the in a related to full comparison debit quarter increases up taxes, $XXX,XXX. $XXX,XXX declines leases primary our drivers attributable our were and compensation-related $XX.X quarter $XXX,XXX of X% to the $X.X captive in a The increases expenses, other million processing to we resumed captive decline The same quarter. $XXX,XXX, $XXX,XXX of which prior first primary year income an is in insurance to which mentioned in increased the are the tax first from primarily load beginning quarter, the decrease to expense payroll linked prior how and X.X% in from quarter. due from drivers

recall health is will insurance. Civista that for our self-insured You employee

of As Thankfully, the as case, computed has our health we has accruing our able reduce the prior third fourth year. actuaries. and accrual we practice, by been year in often begin been our expense by were to insurance at the that rate each the quarters

our of for or accrual quarter, related to accruals combination in addition, year's who the which offset normal of prior merit quarter increase. the resumption the noninterest $XXX,XXX accounted mostly prior quarter The professional in renewal expense X%. In to platform operating previous in were and paid attributable leases the and monthly increases, is marketing first of our marketing and $XXX,XXX the to increased the April digital current card up increase our Compared with our annual the to in declines to assisted year. were place software us the consultant expenses related our that that take depreciation brand fees by banking in truing debit

Turning to the balance sheet. our to focus

an grew leases the $XX.X quarter, represents growth X%. loans by and rate This of annualized total million. For

rate loans less. loan originating maturities The portfolio increases most experienced our our real CRE of all loans and our leases real in nonowner-occupied category, years we are loans While or all loans, nearly were virtually are adjustable increases X for residential estate construction loans. every estate we have and significant

New Loans secured average commercial buildings portfolio. our quarter. at originated rate by X.XX% of loan loans the about office and total make X.X% renewed were up an during of

business are or single located by stated X-story whether of to Again, As offices fairly these we are have anticipate by pipelines growth lines balance with XXXX. secured for range high-rise Along continue construction are loan were metro loan to secured in $XXX our office they not year-to-date districts. predominantly at March million previously, the buildings, be outside production, mid-single-digit and the of we XX. loans central strong our undrawn

beginning just of $X.X mostly million On year. the the funding the or side, negative were total since behind X.X% deposits flat

if million back X% tax and declined we broker or However, year-to-date. $XX out program deposits, balances our noncore to deposit

a core As number of aimed I progress in gathering we funding. at mentioned, have initiatives

our average be to demand continue Our fairly Noninterest-bearing deposit account, accounts approximately granular is excluding a $XX,XXX. CDs, base with focus. deposit

those March respect end. insured deposits at deposits and brokered of related in excess own and of deposits $XXX.X With accounts to our tax-related total deposit Excluding of to XX.X% limit Civista's the excluding FDIC quarter or at million our up the deposits, FDIC made were deposits, noninterest-bearing program, XX.X% tax XX.

million officers additional lenders, was bankers than our Our our concentration no in of XX and deposits XX, since continue March Other customers, At one rate we with is to significantly XXXX. our contributing for This continues had volume how losses all franchise unrealized of losses as them. At interest of profitability. put XX, associated March The securities believe of compensating commercial our municipalities success loan-to-deposit quarter of securities $XXX portfolios. deposit Civista's and to end, we XX. $X.X million, balances deposits. we and low-cost of price be deposits. ratio covered million to had our pressure which treasury characteristics, valuable available our overall private margin these most requesting more than represented continue were on $XX.X cash $XXX.X XX.X%, uninsured and were solid funds and disciplined across some footprint, at our from to environment have net commercial December will various unrealized million We the deposit our classified with at sale unpledged increase public March an and management interest

using Over the our quarter the reduced million, balance security to we sheet. leverage ended balance past XX, for sheet. deemed our regulatory of quarters, our X our by few $XXX.X at security flow X.XX%, XX.X% build was We well capitalized ratio its cash At Tier which portfolio purposes. represented portfolio with our March which have is

slightly acquisitions. Our down X.XX% continue create XX, potential goal tangible remains and our common growth equity Civista's to earnings XXXX. support December adequate organic and ratio maintain capital was to capital at XX, to X.XX% overall March at loan from

shares Although continue we our we any valued. did stock the is not to quarter, believe during repurchase

spring ratios, levels equity capital strong, recognize our our remain While loans. common we tangible

like end, of would we growth. in previous To support any to ratio to rebuild payment we Our dividends and on remains capital focus building to guidance back earnings continue repurchases the and our balance that will that X.X%. with X% to between will TCE

earlier pressures space, the borrower stable. the April reauthorized strong million of the in As quality credit our expense repurchase its and meeting. X-K, an Despite uncertainties stated stock economy remains associated credit new we during and the our program a remain Board $XX.X metrics with on

and we our that issues a related higher annualized I significant we leases, on which previously guarantor mentioned, substantial resolve hotel which these the months and credit, business model backing credit, it cellular an was prevented operations. next to the individually required hospitality for have reserves that internal limit make million a to suffered which pandemic from As XX had would an attributable by The of underwriting which we operating million company provision system quarter, The fraud note $X sale damage an the to for continues loans based expect million did Inspire primarily I cellular resolve where tower $X.X via employee to to gain. a personal properties tower caused suppression was during and X with a to $X expect issue in credit the were during credits, the [Indiscernible] by weakness. the months. and neither driven of

to ratio allowance March XX. Our at of X.X% December improved from credit XXXX, at losses X.XX% XX, for

to compression generate was anticipated, In at our from addition, at XXXX, more our taking March we increased allowance strong, summary, In for December XX. nonperforming our credit lower margin XX, losses to XXX.XX% more to remains credits margin funding. although steps we and than cost XXX.XX% are

during balance a of pace Our remain quarter the at the should loan growth XXXX. mid-single-digit for

address questions While your we Civista And now investment. you earnings experienced continues seen any have. this isolated continues on have will credit may to our you we and quality. for deterioration credit we and value. focus Thank systemic some be our to creating no Overall, that your solid be to afternoon shareholder issues, generate attention happy in

and [Operator Group. Ladies first from Nosal from question gentlemen, now is Your we will question-and-answer begin Instructions] the session. Hovde you. Brendan Thank

to start just off here. Maybe

folks you think position historically CFO vacant a have for the time. I long had quite

the maybe CFO that And earlier to right So why the just formally what talk through you're time? today? is position decision spill now announcing

a now for new bring that think right job XX institutional knowledge, CFO we with we the last of future. Todd that, plans to a time. And the He'll in and -- the is think years, wanted thought timing filled done we of our retirement has just Todd have couple years. at retiring he'll great was for age. of Michel his lot but value when right Todd is approaching I given that sufficient be and Well, next us the working for role has he's

me. one Maybe more for

base. Moving a Cost expense expecting. were quite the though they sequentially, bit than I to -- costs in and even was still up better came

X I of earnings final like million expenses of the year. think the you per on the pinpointed quarter last for $XX.X call, folks quarters

on expense of you and curious to that base kind updated thoughts Just hear how expect to forward. the going your trend

of quarter, And Rich. the would I I first that We did. have rest guided we're the into year. the going difference good XX.X%. say for year. last between budget. go the in that's of only the effect the as year call quarter the Between now is recall, We merit number you'll this the And and And big Brendan, X of think, that rest our really that's of significant, to increases a think, cash the April during expenditure our we've additional year. I slated every and end the got

lost Yes. end would going on near We expense really kind of year, focused here this have. knowing control into the and we that the of last just revenues year

we if So expense of we're -- into I starting initiatives really think that think the that's because I to see the to good put control place. some we're guiding

controlling showing increases that that effect Rich are But quarter, gave, if we guided into second other expenses. the in went So number we merit think our quarter. I that's I last I think think that

is next from Your question Piper Justin Sandler. from Crowley

quarter. margin hit on net I for the interest to wanted the

of upward you you're environment? a remarks, far be you dynamics what rate seeing prepared we the as where for Where let's pressure you allows some side? the funding flat can as little get a more may unpack stabilization a repricing the spot lingering it just asset margin call Given and that on discussed when on to in

into know going million balance That's the absent great we a probably wealth Justin, the low-cost where what that migration wild to the don't opportunity balance on out able don't to the I again, even to remember that balances money do. And management off be confident think Ohio or even it's this of in margin from our time to of to haven't continue market the $XXX that funding going were can't whether in the we're model if and I funding. deposits bring impossible homebuyers, our you related on I track the have opportunities that are pretty -- initiatives pretty last call not. predicting of I is that has to is I with I -- Rich contraction it's again. But of bigger record and cash our Dennis move higher there's -- growth have is to to market think group they're but feel respectable. discussed, to some or to we are think how think I model, the CDs. our kind figured absent just that. noninterest-bearing that card sheet X reduce we thing And is

changes, it and don't by significant X in quarters basis a us I've in said that that a models that have X rates row. points. any I nothing if crazy tell contract quarters again, row, in But think movements wrong and will we interest I've been our

difference, to see some Justin, is I positives. big we think, The are starting

we were points the did end reprice We are that improvement broker see it March, of some we able had on the than basis of funding near get less were the for. -- brokered got able deposits. some to We -- XX at some books we We there. to

a specials rates lot haven't of moved. have our starting. CD We The are

So those rates coming that ones their last or here over year quarter, into the next back so. the adjust those rates downward third due at next were the high quarter will next are over midyear -- the repricing

loans to a not there that. and taking the and to thing. may it starting improvement be balance quickly to, implement, have start assets should -- because how able also how that third I the quarter be where going as all money get have those Rich down we program So goes on we the need quarter, we we'll May do the will we're like week in the benefit tax deposits margin in signs, early of those loans alluded wealth first here But our the And I We're put some may to that to the comes fast plus first depend good positive second But funding more that the on but really think, homebuyer loan, we are grow we see of of quarter. sheet because year. repricing that we here. think what the third and half for

So there's couple a of factors.

that at might think large start I signs stabilizing. least that see we some positive the

just that That's if you And terms some not funding here? the to have? maturing looking What able balance helpful. forward quantify in just year? you're of off of brokered the that. what guess that's I like does I'm sure And dovetailing of then through repricing look do

all it, we The had So the have quarter. repricing. $XXX remainder in of repriced million that nothing slug fourth XX. of that We a is March

So benefit we our much in quarter. reprice. the that And the broker stuff fourth of quarter really that first next didn't in the is X slopes really in get quarter, late the will fourth of

right. That's

we've been kind $XXX of CDs. of brokered So that's million got constant of

said, XX come of due $XXX Dennis that's of rest that it in we've or into that -- As mature The year. will got really. November this and of goes million

which, just but And maybe medium fairly focus PC commentary environment then just term? looking more get know the for a or the quiet, sense any so on been but here X%, where trying to I gears priorities for high-level rebuilding of your shifting back just capital M&A, over capital has has the a little. remained course, just getting stand to of levels, longer X.X%,

those you buyer a dialogue repricing. have of dive environment happening seller. lot right things a with The a whether Yes. environment lot you're to I higher that. effect to are really to this going a any loan rates do figure into marks, like books think now, in the mean of on trying or M&A a sellers tough and have books buyer out or to What's I around how M&A. times I loan that think just it's of really there's

pretty marks So doing are I you're the heavy. think that

now -- we our us, right too just environment on just type because of I M&A. focused to So capital we're building think do it's now any tough an for base right

from Your you Terence question. next Stephens, question McEvoy ask is from please

Dennis and remainder mid-single-digit will continue in loan growth some of Ohio could the talked talk growth from pipelines, markets kind in rate categories that Maybe think year? confidence that metro, over about of other earlier. the of to the just that And you you do come about multifamily

is it time. I last it are our right Pipelines Yes. pretty was year actually Terence, When at year, sitting now. Chuck. the actually is this higher same good to than last now pipeline compare right

estate we're not margin well most Now I that the be our mindful were quite at as deals. new and holding originations in very rates to of just tell rates trying really as very pull-through on would above they not X you real past as because strong especially

We're units as in to So both multifamily demand, our Cincinnati rate been some really can't been. Obviously, the markets seeing with fast we've what the too. as got stuff has in enough, really some Toledo area. coming hasn;t but Colombus strong good especially seeing pull-through good, Cleveland build far metro we're and in Dayton on it still -- and growth

and seen So multifamily X I what concessions I on we're as would doing any higher And it's of multifamily in pressures coming far. We actually it's are the markets rate or the the that any being efforts our most seeing, well across so area, appraisal. side. projected metro major the what's being being really on rate than haven't are say categories in really really rents especially call would a built, stuff

Kentucky. still about we willing and taking it's But thing We feel about here demand put to is to are from little you them pretty a I sit work. bigger like to Northern bit in good Southeast that last that feel more Indiana in extra pretty and in So these to The work talked the projects Ohio one perspective. developers flow get cash the equity we call, where cash think make strong. a

going refund tax know per million quarter we bit Should the follow-up, $XX.X your in that's quarter program tough funds was out quarter. a first I noninterest-bearing a million out question. the about last of kind outsized forward? of a view? coming Or are was processing model that you How As the thinking $XX

that's No, probably fair.

going to you mercy, had I the tax partner will, December, out. want we gone processing be because But we're But of in there, happen we about sometime right I at mean, will that the thought $XX I think fine at million the quarter. end free point us. some kind if guess that have. they're we of money money it's in the was going at second Terry. March, move We're is of that now, leave the that, in the and it to left to conversation they to that if

And is one fully more year? quick to revenue one. then of XQ service just the overdraft there charge lost Or that's last year, remainder in that bit million incrementally $X.X run in the this is rate? captured The the come down a of

that first quarter is would say post typically quarter NSF our I holidays. our highest

if of less XX it's of So the first than of the less And be to income NSF $XXX,XXX we the had kind course months, over that. X.X. in projecting quarter, something we're going

from Your is next Tim KBW. question from Switzer

loan follow-up on your had commentary. I a

you little Have guidance environment getting the your drove digit the about digits. what sounds guidance remember something upside And think that raised And more quarter from you that single here? competitive is to I like quarter. guys little I was it low mid-single maybe last a you a last expectation to bit -- mentioning bit? guys seen I intense think moderate

saying along lot lot. not I were X%, think we And be a digits, it. all out a X% little we a on really There's range, focused that what relief, projecting of seen bit of there. have competitors think I we X% mid-single

bidding competitive back that the I to the quarter. quarter with really all at all, have come the in the last cost inverted more know, funds yield first put As disadvantage. a into we so X up the little think that us as of at in kind bit talked come in treasury actually seen XX as call, compared competitors you plus in and looking curve back of and a second little of But a about, we've lot

feel has I haven't first don't So like our closer really we plus results. what at -- I that feel treasury offering. feel that way just got guidance quarter the to least changed But after a little we're I

our guys to growth governor to ability an the add Well, But loan price is the in growing we that that, the how on we're balance Tim, really is competition is -- big growth loan that. only as those. ability our impediment when our thing and I'd sheet our as that fund disciplined to loan fund to

be guys overall what your would yields you expect loan floating cuts environment? then the end maybe And how the impact X of or loans basis got and us diorite X towards Can if remind trend on are we just rate you'd the to the year. in maybe percent of a what's NIM

Well, we think that cut little a The again, overnight will benefit some benefit because, us our bit funding rate with been probably that we've of borrowings. us.

have those kind upwards. trending been of So

and to tied million up those trying are they lot And And higher. $XX more are rates A were We a to bit book to or is short-term from repricing. from yield more curve to million. our correct itself think benefit it -- those I million treasury treasuries. little XX% have even rates of loans of XX/XX $XXX loans come also would up, looks like tied the that. we our

So we book as reprices, should benefit. that

our so just book little about a -- to give flowing some numbers, perspective, daily. that from you kind of raw of over XX% Tim. is

the -- did we dive and in reprice deep year, So we're that going that only XXXX, of we and which million had quarter. about $XX million in we of out started $XXX when a the to first was then repricing

help half year. So some of that in be earlier second when the is of the moving margin year the repricing of in of the that half and the feel second going them $XXX out we $XX good so of million Dennis to the mentioned million, about

from is question Manuel D.A. Navas next Davidson. from Your

I third there the of quarter. management that you wealth amount? size answered, in of think been my lot after potential that? Is opportunity just said the the have of but it a is questions $XX Or could you quantify help million more

borrow we'll the that's that but will sitting this wealth a be super money, certainly -- going Rich. to so department mechanics a had. And deposits we move is it squared now. to less bank. just once just And be and it's we just not transaction. than Those get Well, cheap away be over in It's what we'll are our money the

there to And we those public municipalities looking we of -- libraries a I and initiatives other and and add a maybe stuff. proactively going number a money bit more X and our at schools but mean to think deposits. county we'll we're looking little be getting bit at we're we're that we would all be branches, -- of initiatives, mentioned able that have more we that to a where we add markets And funds reaching little aggressive out have that funding. are I that and and get the

of a with number in that of put number be immediate can that targeting loan or I relationships. think a little customers, with -- and for have program We'll initiatives addition with Credit Plus there's instance, of and Ohio a deposit impact [Indisicernible] to those customers on we an have we lending cost. or But program number reports, funding our stuff. We no state think underway College the of

wouldn't I say immediate.

I over say time, year. -- as the Well, year. in next would mentioned remarks over the I over next my

next Scott. Daniel from [Operator Montgomery question Instructions] Janney from is Your Cardenas

for catch have you're how But basis? the the that we fee mean, questions I sounds have go-forward rate you a on guys up income run given color you think it all side. to I holes good try guys that of appreciate working been of created. to couple A should some like on the a and

into for So but a we're that. the little least banking. again, if right I'll And I again, pieces mortgage we're the about other quarter, talk -- in are on now the wildcard in equipment there still But probably don't Chuck banking it. the mortgage I'll Chuck the we're million is gets we think let related guess coming wildcard at those again, I to leasing. best I had But us when depending time And I pretty for lumpy whatnot. year and it, -- of -- revenues let sold talk some fees our about we're into bit. guess $X.X a

CRA still because have more come really Ohio we've first are to to preapprovals adjusted into concerted like Well, holding the still towards million having a being a quarter a marketplace in the come get doesn't compared come to consumer going of as Obviously, production going bit the We about our limited year And We to making production future. amount Dan, first off people about product. off of a the have the in to a a as quarter But first last to X% actually did X% the doesn't people been sale. to more more pipeline got they piece pushing We're houses. go our like books, a of effort to. really lot bit still to real are our gain that rates. on need in well down rate. there. quarter the this near that's mortgages like look on mean solid rate move salable show we've getting as seems got the $XX year. a rigs just more feel have in in and but just getting there. starting want it little portfolio. distant the this salable we production out are going and stuff And buy It's the -- a to of compared piece on the little But higher I into the lot can't we're it people and rest of put is construction to year inventory

the should in and the Well, months, up. spring volume be summer

best relationships in our a us that's us work and cadence where our the and cadence so did us get gains be the happening I improve, -- their on of think which pricing desk some that's optimistic a throughout to some company, be get with help happen create our little quicker So syndication there. bit will sort because function sale to leasing going sole gain that Also, we'll things. able of will we to that

that was at chance who's of we income was another looked bigger based area that running in initiative how of can maybe gains do one our that have initiatives bit quarter. So another little bit was we and we the that to incentivize we a on undertook little better. the going first to stuff, but get, We're they'll that a do that a

the but $XXX,XXX. service is down NSF $XXX,XXX, talked only rolling fees The our down we add, I'd thing about charge being about

we we that during in charges, and something put quarter. So that's with the up place service made higher

had benefit month service increase across X was month really benefit our only month We there. charges X had really and did of of charge. on we of board, service only the We March some real

that to some of offset are various we trying lost in revenue ways. So

and from then... sounds modestly. you QX like up flattish building So it in And there maybe stay can then start

what for I'm sorry. fourth bounces I we kind mid I can quarter. our say depending is too, -- few just bit, the wildcard and down short-term a of on on that a call little did would quite in the swaps swap borrowers' It our up appetite income.

been X-year next goes But months, depending of I income, hasn't on The the the the might able appealing curve curve jump think we been a in inversion to more the at would too. as be fourth on borrowers. a generated way around. up has -- swap few little some over yield pick the quarter. more $XXX,XXX to that time. in bounced how It swap we yield

And about how guys, thinking then that? we you for tax rate should be

lot than a this time. It came lower would in it we at thought

low we've under effective that. I about seen that's what that tax drove that as but I've XX% quarter, as know should answer always it. kind that's I And said know think we've just XX% Our this preference this what down don't but and quarter, of rate items I ever to XX%. were, the or should moped.I the was

No you If question very to me ask until wait is the problem. the last one answer.

to will closing call Dennis back further There are this for Shaffer at I questions the hand the remarks. time. now no

are for us and strong in first our deposits that Well, want I future positions company quarter, call success. with participated the core to we those our the thank franchise deposit everyone disciplined have just today. managing confident in while our are pleased approach joining and Again, pricing to not well and closing, for we just that

again look for you you time forward quarter your all So to to in Thank to our today. second talking share I a months results. few

joining. you. conference Thank Ladies ended. the all now and for you has gentlemen, Thank

You may all disconnect.