Q4 2021 Civista Bancshares Inc Earnings Call
[music].
Speaker 1: Good day and welcome to the Savista BankShares Inc. 2021 earnings call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by the red button.
Good day and welcome to the East Avista Bancshares incorporated 2021 earnings call all.
All participants will be in listen only mode should you need assistance. Please signal conference specialist by pressing the star key followed by zero. After today's presentation there'll be an opportunity to ask questions. Please note. This event is being recorded I would now like to turn the conference over to Dennis Shaffer CEO and President. Please go ahead.
Speaker 1: After today's presentation, there will be an opportunity to ask questions. Please note this event...
Speaker 1: I'd now like to turn the conference over to Dennis Schaefer, CEO and President. Please go ahead.
Speaker 2: Good afternoon. This is Dennis Schaefer, CEO and President of Sadista Bank Shares. And I would like to thank you for joining us for our fourth quarter in full year, 2021 earnings call.
Good afternoon. This is Dennis Shaffer, CEO and president of <unk> Bancshares.
Like to thank you for joining us for our fourth quarter and full year 2021 earnings call.
Speaker 2: I am joined remotely by Rich Dutton, Senior Vice President of the company and Chief Operating Officer of the bank, Chuck Parcher, Senior Vice President of the company and Chief Lending Officer of the bank and other members of our executive team.
I am joined remotely by Rich <unk> Senior Vice President of the company and Chief operating Officer of the Bank Chuck Parcher Senior Vice President of the company and Chief lending officer of the bank and other members of our executive team.
Before we.
Speaker 2: Before we begin, I would like to remind you that this conference call contains forward-looking statements with respect to the future performance and financial condition of Sevista Bankshare's zinc that involves risk and uncertainty.
To begin I would like to remind you that this conference call contains forward looking statements with respect to the future performance and financial condition of service. The Bancshares, Inc. That involves risks and uncertainties various factors could cause actual results to be materially different from any future results.
Speaker 2: Various factors could cause actual results to be materially different from any future results expressed or implied by such forward-looking statements.
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.
Speaker 2: These factors are discussed in the company's SEC filings, which are available on the company's website.
Speaker 2: The company disclaims any obligation to update any forward-looking statements made during the call. Additionally, management may refer to non-GAAP measures which are intended to supplement but not substitute the most directly comparable GAAP measures. The press release available on our website contains the financial and other quantitative information to be discussed today as well as the reconciliation of the GAAP to non-GAAP measures.
The company disclaims any obligation to update any forward looking statements made during the call. Additionally management may refer to non-GAAP measures, which are intended to supplement but not substitute the most directly comparable GAAP measures. The press release available on our website.
Contains the financial and other quantitative information to be discussed today as well as the reconciliation of the GAAP to non-GAAP measures.
Speaker 2: We will record this call and make it available on the bank shares website at civb.com.
We will record this call and make it available so thats the bancshares website at civ be dot com.
Speaker 2: Again, welcome to SaVista BankShares fourth quarter and full year 2021 earnings call. I would like to begin by discussing our results which were issued this morning. At the conclusion of my remarks, we will take any questions you may have.
Again, welcome to <unk> Bancshares fourth quarter and full year 2021 earnings call I would like to begin by discussing our results which were issued this morning at the conclusion of my remarks, we will take any questions you may have.
Let me start by noting several significant accomplishments and transactions that occurred during the fourth quarter.
Speaker 2: This morning we reported earnings for the fourth quarter, 2021, nearly $11 million or 73 cents per minute of share, which represents an 8% increase over the prior years fourth quarter.
This morning, we reported earnings for the fourth quarter 2021.
$11 million or <unk> 73 per diluted share, which represents an 8% increase over the prior year's fourth quarter.
Speaker 2: Net income totaled $40.5 million or $2.63 per diluted share for the full year ending December 31, 2021, which is an increase of $8.4 million or 26% compared to 2020.
Net income totaled $45 million or $2 63.
Per diluted share for the full year, ending December 31, 2021, which is an increase of $8 $4 million or 26% compared to 2020.
Our pretax pre provision earnings for 2021 were $48 $4 million compared to $47 $2 million for 2020 and represented the highest pretax pre provision earnings our company has ever achieved.
Speaker 2: Our return on average assets was 1.47% for the quarter and 1.34% for the year, while our return on average equity was 12.49% for the quarter and 11.61% for the year.
Our return on average assets was 147% for the quarter and 134% for the year, while our return on average equity was 12, 49% for the quarter and 11 six 1% for the year.
Speaker 2: During the final quarter of 2021, our net loans exclusive of PPP grew by 33.1 million or at an annualized growth rate of 6.9%. This gave us $114.5 million in net loan growth exclusive of PPP for the year and an annual growth rate of 6.2%.
During the final quarter of 2021, our net loans exclusive of PPP grew by $33 1 million or at an annualized growth rate of six 9%.
This gave us $114 $5 million of net loan growth exclusive of PPP for the year and an annual growth rate of six 2%.
Speaker 2: In November , we announced the completion of a private placement of $75 million of 3.25% subordinated notes due in 2031 with the proceeds being used for general corporate purposes. We did push a portion of the proceeds down to the bank, and we anticipate using some of these proceeds to fund the cash portion of our recently announced transaction with Communibank Corp.
In November we announced the completion of a private placement of $75 million of 3% to 5% subordinated notes due in 2031 with the proceeds being used for general corporate purposes, We did push a portion of the proceeds down to the bank and <unk>.
We anticipate using some of these proceeds to fund the cash portion of our recently announced transaction with community Banc Corp.
Speaker 2: We work please to announce the recent signing of the definitive agreement to purchase Community Bank Corp and its subsidiary, the Henry County Bank. We view this as a low risk transaction with a significant upside that will open the door to business in northwest Ohio and the Toledo MSA. And we look forward to welcoming our new employees and customers into the city center.
We were pleased to announce the recent signing of the definitive agreement to purchase a bank Corp, and its subsidiary the Henry County Bank. We view this as a low risk transaction with a significant upside that will open the door for business in northwest, Ohio, and the Toledo.
And we look forward to welcoming our new employees and customers into the sonesta family.
Speaker 2: We continued to be active in repurchasing common shares. During the fourth quarter, we repurchased 73,541 shares at an average price of $23.83 per share.
We continue to be active in repurchasing common shares during the fourth quarter, we repurchased 73541 shares at an average price of $23 83 per share.
Speaker 2: During the year, we refurts just 983,400 shares or approximately 6.2% of the outstanding shares at December 31, 2020, and an average price of $22.59 per share. We view share refurts as an integral part of our capital management strategy.
During the year, we repurchased 983400 shares or approximately six 2% of the outstanding shares at December 31, 2020 at an average price of $22 59 per share we view share repurchases.
As an integral part of our capital management strategy.
Speaker 2: As of December 31st, we have $9.3 million available from our repurchase authorization, which was approved by our board of directors last August . While we ceased repurchases since announcing the transaction with Communibank Corp., we expect to resume our repurchase program now that we have announced earnings.
As of December 31, we have $9 $3 million available from our repurchase authorization, which was approved by our board of directors last August .
While we ceased repurchases since announcing the transaction with community Banc Corp, we expect to resume our repurchase program now that we have announced earnings.
Speaker 2: Now let's turn our attention to our performance for the quarter and for the year.
Now, let's turn our attention to our performance for the quarter and for the year.
Speaker 2: As I stated, we were extremely pleased with our loan growth for the quarter and the year. Excluding the impact of PPP loans, our loan portfolio grew by an annualized rate of 6.9% for the quarter and 6.2% for the year. Despite having $93.8 million in loan payoffs during the quarter and 236.3 million in loan payoffs during the year.
As I stated we were extremely pleased with our loan growth for the quarter and the year excluding.
Excluding the impact of PPP loans, our loan portfolio grew by an annualized rate of six 9% for the quarter and six 2% for the year, despite having $93 $8 million in loan payoffs during the quarter and $236.
$3 million in loan payoffs during the year.
Speaker 2: At year end, $43.2 million in PPP loans remained. All first round loans have been processed and all but seven of those loans totaling $622,900 were forgiven.
At year end.
$43 $2 million in PPP loans remained all first round wounds have been processed and all but seven of those loans totaling $622900 were forgiven.
Speaker 2: Additionally, 67% of our second-round loans have been forgiven. We have $1.8 million in PPP fees remaining at year-end, and we anticipate the forgiveness process to be essentially completed by the end of the second quarter.
Additionally, 67% of our second round of loans have been forgiven, we have $1 $8 million in PPP fees remaining at year end and we anticipate the forgiveness process to be essentially completed by the end of the second quarter.
Speaker 2: Net interest income for the quarter declined by 1.1 million, or 4.5% compared to our linked quarter, and was consistent with the prior year. Our margin for the quarter contracted 20 basis points from our linked quarter, primarily on less PPP fee accretion.
Net interest income for the quarter declined by $1 1 million or four 5% compared to our linked quarter and was consistent with the prior year our margin for the quarter contracted 20 basis points from our linked quarter, primarily on less PPP fee accretion.
Speaker 2: Net interest income for the year increased $5.7 million or 6.4% compared to our prior year.
Net interest income for the year increased $5 7 million or six 4% compared to our prior year.
Speaker 2: The margin for the year contracted 23 basis points to 3.47 percent compared to the prior year. As we have shared on previous calls, the increased liquidity we experienced as a result of the federal government's stimulus program and our tax processing program both continue to have a negative impact on our year to date margin.
Our margin for the year contracted 23 basis points to 347% compared to the prior year as we have shared on previous calls the increased liquidity, we experienced as a result of the federal government's stimulus program and our tax processing program. Both continue to have a negative impact.
Our year to date margin.
Speaker 2: Our non-interest income remains strong, increasing $385,000 over the red corner.
Our non interest income remained strong increasing $385000 over the linked quarter, while the quarter included 187.
Speaker 2: While the quarter included $187,400 gained from life insurance proceeds related to a policy acquired through one of our acquisitions, increases in service charges and increases in wealth management fees more than compensated for a decline in our gains on the sale of mortgage loans. We continue to be pleased with the strength and diversity of our non-infrast income streams.
400 dollar gain from life insurance proceeds related to our policy acquired through one of our acquisitions increases in service charges and increases in wealth management fees more than compensated for a decline in our gains on the sale of mortgage loans, we continue to be pleased with the strength and diversity.
<unk> of our non interest income streams.
Speaker 2: Similarly, if we back out the impact of the $1.8 million gain on the sale of our Visa B stock that occurred in the second quarter, our non-interest income still increased $1.5 million or 5.3% year over year as we experienced increases in all nine interest income categories except for anticipated declines in our gain on sale of mortgage loans and swap fees.
Similarly, if we back out the impact of the $1 $8 million gain on the sale of our visa B stock that occurred in the second quarter. Our non interest income still increased one and a half million dollars or five 3% year over year as we experienced increases in all.
Non interest income categories, except for anticipated declines in our gain on sale of mortgage loans and swap fees.
Speaker 2: Fourth quarter gains on the sale of mortgage loans totaled $1.5 million, or 9% less than the linked quarter, and $1.6 million, or 52.1% less than the fourth quarter of the previous year.
Fourth quarter gains on the sale of mortgage loans totaled $1 $5 million or 9% less than the linked quarter and $1 6 million or 52, 1% less than the fourth quarter of the previous year. Although production has slowed mortgage banking was our.
Speaker 2: Although production has slowed mortgage banking, was our largest driver of non-interest income during the year.
The largest driver of non interest income during the year the.
Speaker 2: The year-to-date gain on the sale of mortgage loans was $8 million, compared to $8.6 million the previous year.
The year to date gain on the sale of mortgage loans was $8 million compared to $8 6 million the previous year.
Speaker 2: During the quarter we sold $54.8 million in residential mortgage loans and an average premium of 268 basis points compared to $56.9 million in the length quarter and $91.8 million in the prior year. You're going to date we sold 260.
During the quarter, we sold $54 $8 million in residential mortgage loans at an average premium of 268 basis points compared to $56 $9 million in the linked quarter and $91 8 million in the prior year.
Year to date, we sold 260.
Speaker 2: $260.3 million in mortgages compared to $304 million in the previous year. As we head into 2022, our mortgage pipelines remain solid.
$263 million in mortgages compared to $304 million in the previous year as we head into 2022, our mortgage pipelines remain solid.
Service charges continue to be a strong contributor to income increasing $294000 compared to the linked quarter and $617000.
Speaker 2: Service charges continue to be a strong contributor to income, increasing $294,000 compared to the link quarter in $617,000 over 2020.
Over 2020.
Speaker 2: Interchange revenue remained consistent with our link quarter and increased $866,000 or 21.8% compared to the prior year as consumers seem to be maintaining their cashless buying habits that began during the economic shutdown.
Interchange revenue remained consistent with our linked quarter and increased $866000 or 21, 8% compared to the prior year as consumers seem to be maintaining their cashless buying habits that began during the economic shutdown.
Speaker 2: Our wealth management group continues its strong contribution to non-interest income.
Our wealth management group continues its strong contribution to noninterest income.
Speaker 2: While wealth management fees were consistent with the link quarter, they increased $876,000 or 22% when compared to the prior year.
While wealth management fees were consistent with the linked quarter, they increased $876000 or 22% when compared to the prior year.
Speaker 2: We continue to bring in new accounts and benefited from strong financial markets ending the year with $683 million in assets under management on our trust and brokerage platforms combined.
We continue to bring in new accounts and benefited from strong financial markets ending the year with $683 million in assets under management on our trust and brokerage platforms combined.
Speaker 2: As we discussed during our call last quarter, the year over year reduction in swap fees is the result of our decision earlier this year to book select five and seven year fixed rate commercial loans on our balance sheet.
As we discussed during our call last quarter the year over year reduction in swap fees as a result of our decision earlier this year to book select five and seven year fixed rate commercial loans on our balance sheet.
Speaker 2: Non-interest expense declined $2.3 million or $11.7% in comparison to the length quarter. Our compensation expense was down $1.3 million on lower commissions as mortgage production declined.
Noninterest expense declined $2 3 million or 11, 7% in comparison to the linked quarter, our compensation expense was down $1 $3 million on lower commissions as mortgage production declined.
Speaker 2: After adjusting for the $3.8 million federal home loan bank prepayment penalty we incurred during the second quarter, non-interest expense would have increased $4.1 million or 5.8% year over year. The increase is primarily attributable to a $2.2 million or 5.2% increase.
After adjusting for the $3 8 million, our federal home loan bank prepayment prepayment penalty, we incurred during the second quarter noninterest expense would have increased $4 1 million or five 8% year over year. The increase is primarily attributable to a $2 2 million.
Or five 2% increase in.
Speaker 2: in compensation expense and a $922,000 increase in software maintenance which was primarily the result of the digital banking platform we implemented earlier this year.
In compensation expense and a $922000 increase in software maintenance, which was primarily the result of the digital banking platform. We implemented earlier this year.
Speaker 2: Our efficiency ratio for the year was very respectable, 59%, after adjusting for the prepayment penalty compared to 59.1% for the prior year.
Our efficiency ratio for the year was very respectable 59% after adjusting for the prepayment penalty compared to 59, 1% for the prior year.
Speaker 2: Turning our focus to the balance sheet, year-to-date, our total loans declined by $59.6 million. However, excluding the impact of PPP loans, our loan portfolio increased $33.1 million during the fourth quarter and $114.5 million for the year.
Turning our focus to the balance sheet year to date, our total loans declined by $59 6 million. However, excluding the impact of PPP loans, our loan portfolio increased $33 1 million.
During the fourth quarter and $114 $5 million for the year.
Speaker 2: That equates to an annualized growth rate of 6.9% and 6.2% respectively.
That equates to an annualized growth rate of six 9% and six 2% respectfully. We are pleased with our loan production, which occurred in every market across our footprint.
Speaker 2: We are pleased with our loan production, which occurred in every market across our footprint.
Speaker 2: Our loan pipelines remain solid and we have 108.7 million in approved undrawling construction loans at December 31.
Our loan pipelines remain solid and we have $108 7 million and approved Undrawn construction loans at December 31.
Speaker 2: While we continue to battle loan payoffs on completed projects, reduced outstandings on operating lines of credit, and increased liquidity of our customers, we continue to expect that we will grow our loan portfolio at a similar pace in 2022.
While we continue to battle loan payoffs on completed projects reduced outstandings on operating lines of credit and increase liquidity of our customers. We continue to expect that we will grow our loan portfolio at a similar pace in 2022.
Speaker 2: On the funding side, we experience growth in every category except time to pause.
On the funding side, we experienced growth in every category, except time deposits total deposits increased $227 3 million or 10, 4% since the beginning of the year non.
Speaker 2: Total deposits increased $227.3 million or 10.4% since the beginning of the year.
Speaker 2: Non-interest-bearing demand accounts, which made up 32.6% of our total deposits at December 31, grew by $68.1 million compared to December 31, 2020.
Non interest bearing demand accounts, which made up 32, 6% of our total deposits at December 31 grew by $68 1 million and.
Compared to December 31, 2020.
Speaker 2: thirty six point three million dollars in this growth came from the non-interest bearing business accounts and twenty three point six million from public entity
<unk> $36 $3 million of this growth came from the non interest bearing business accounts and $23 6 million from public entities.
Speaker 2: We also experienced a $127.4 million increase in our interest-bearing demand accounts driven by a $60.1 million increase in consumer savings and $28.2 million in consumer MMDAs.
We also experienced a $127 $4 million increase in our interest bearing demand accounts, driven by a $61 million increase in consumer savings and $28 2 million in consumer NMDA.
Speaker 2: While we were talking about deposits, I would like to note that we successfully implemented online account opening through our digital banking service in December .
While we were talking about deposits I would like to note that we successfully implemented online account opening through our digital banking service in December .
Speaker 2: This was the next in a series of initiatives we set out to accomplish when we introduced our new digital banking platform earlier this year. These initiatives are focused on improving efficiency and ultimately to provide a better customer experience for our retail and business customers.
This was the next in a series of initiatives, we set out to accomplish when we introduced our new digital banking platform earlier. This year. These initiatives are focused on improving efficiency and ultimately to provide a better customer experience for our retail and business customers.
Speaker 2: During the pandemic, we automatically downgrade the commercial loans that requested concessions beyond the initial 90-day modification period. Our total criticized loan portfolio, which includes all classified and substandard loans, declined from $148.1 million at December 31st, 2020, to $78 million at December 31st, 2021.
During the pandemic, we automatically downgrading commercial loans that requested concessions beyond the initial 90 day modification period. Our total criticized loan portfolio, which includes all classified and substandard loans declined from $148 1 million at December 31, two.
2022 $78 million at December 31, 2021.
Speaker 2: The segment with the largest number of criticized loans remains hotels and lodging, totaling $49.2 million at the end of the year. Many of these operators have experienced increased occupancy from leisure travel during 2021. Despite the lingering effects of COVID on travel, we anticipate increased demand going forward, resulting in further reduction in our criticized portfolio.
The segment with the largest number of criticized loans remained hotels and lodging totaling $49 $2 million at the end of the year. Many of these operators have experienced increased occupancy from leisure travel during 2021, despite the lingering effects of Covid on travel we.
<unk> increased demand going forward, resulting in further reduction in our criticized portfolio.
Speaker 2: While uncertainties continue to be associated with the economy, there is improvement throughout our footprint in our customers' financial position.
While uncertainties continue to be associated with the economy. There is improvement throughout our footprint and our customers financial positions. In addition, we realized $782000 in net recoveries during 2021 as a result, it was not necessary to.
Speaker 2: In addition, we realized $782,000 in net recoveries during 2021. As a result, it was not necessary to record a provision during the quarter.
<unk> recorded a provision during the quarter.
Speaker 2: The ratio of our allowance for loan losses to loans increased to 1.33% at year-end 2021 from 1.22% at year-end 2020. Exclusive of the PPP loans, the 2021 ratio would have been 1.36%.
The ratio of our allowance for loan losses to loans increased to 133% at year end 2021 from 122% at year end 2020 exclusive of the PPP loans. The 2021 ratio would have been 136%.
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Speaker 2: Our allowance for loan losses to non-performing loans also increased to 496.1% at the end of the year, from 343.05% at the end of 2020.
Our allowance for loan losses to nonperforming loans also increased to 496, 1% at the end of the year from 343, 5% at the end of 2020.
Speaker 2: As a reminder, we did meet the guidelines for the delayed implementation of CECL and will not be required to adopt it until 2023.
As a reminder, we did meet the guidelines for the delayed implementation of seasonal and will not be required to adopt it until 2023.
Speaker 2: We ended the quarter with tangible common equity ratio of 9.33% compared to 9.98% at December 31st, 2020.
We ended the quarter with tangible common equity ratio of 933% compared to $9, 98% at December 31, 2020, we.
Speaker 2: We successfully completed the private placement of $75 million and 3.25% subordinating notes that will be due in November 2031. We pushed $50 million of the proceeds down to the bank, which lowered our CRE to risk-based capital ratio to 291.5% at December 31st, 2021.
We successfully completed the private placement of $75 million and $3 two 5% subordinated notes that will be due in November 2031, we pushed $50 million of the proceeds down to the bank, which lowered our CRE to risk based capital ratio to 291.
5% at December 31, 2021.
Speaker 2: In addition to raising sub-debt, we continue to create capital through earnings. Our overall goal is to have adequate capital to support our organic growth and potential acquisition.
In addition to raising sub debt, we continued to create capital through earnings. Our overall goal is to have adequate capital to support our organic growth and potential acquisitions too.
Speaker 2: Two important parts of our capital management strategy continue to be dividend payments and share repurchases. We continue to believe our stock is a value and remain active in repurchasing our shares until just prior to announcing the transaction with Communibank Corp.
Two important parts of our capital management strategy continue to be dividend payments and share repurchases. We continue to believe our stock is a value and remained active in repurchasing our shares until just prior to announcing the transaction with community Banc Corp.
Speaker 2: Now that we have announced earnings, we will be free to resume our repurchase program. During the quarter, we repurchased 73,541 shares of our stock at an average price of $23.83 per share. Year-to-date, we repurchased 983,400 shares at an average price of $22.59 per share.
Now that we have announced earnings we will be free to resume our repurchase program during the quarter, we repurchased 73541 shares of our stock at an average price of $23 83 per share year to date, we repurchased 983400 shares at an average price of 20.
$2 59 per share. This represented the repurchase of six 2% of the shares that were outstanding at December 31, 2020, we have approximately $9 3 million <unk>.
Speaker 2: This represented the repurchase of 6.2% of the shares that were outstanding at December 31st, 2020.
Speaker 2: We have approximately $9.3 million remaining to be repurchased under the current repurchase program.
The remaining to be repurchased under the current repurchase program.
Okay.
Speaker 2: We have shared our desire to grow through acquisition on past calls, and we were pleased to announce the definitive agreement with Communibank Corp., the parent company of Henry County Bank, headquartered in Napoleon, Ohio. At September 30th, Communibank had total assets of $329 million with total loans of $165 million and $276 million in low-cost deposits. The transaction will add seven branches in Henry and Wood Counties in northwest Ohio.
We have shared our desire to grow through acquisition on past calls and we were pleased to announce the definitive agreement with community Banc Corp. The parent company of Henry County Bank headquartered in the poll in Ohio at September 30th Community Bank had total assets of $329 million with total loans of 165.
And $276 million in low cost deposits the transaction will add seven branches and Henry and Wood counties in northwest, Ohio.
Speaker 2: The acquisition significantly accelerates our presence in Northwest Ohio and will put us well on our way to have a significant presence in each of Ohio's top five MSAs.
The acquisition significantly accelerates our presence in northwest, Ohio, and will put us well on our way to have a significant presence in each of Ohio's top five msas.
Speaker 2: Their strong core customer base fits well with our relationship banking philosophy, and their nearly 60% loan-to-deposit ratio will provide liquidity to accelerate our loan growth throughout northwest Ohio and the greater Toledo area.
There are strong core customer base fits well with our relationship banking philosophy, and there are nearly 60% loan to deposit ratio will provide liquidity to accelerate our loan growth throughout northwest, Ohio, and the greater Toledo area.
Speaker 2: We anticipate closing the transaction during the second quarter and converting their core banking systems during the fourth quarter.
We anticipate closing the transaction during the second quarter and converting their core banking systems during the fourth quarter.
Speaker 2: In summary, we are pleased with another quarter and year end of solid earnings, continued loan growth, and solid credit quality.
In summary, we are pleased with another quarter and year end of solid earnings continued loan growth and solid credit quality.
Speaker 2: While the economy improved during 2021, labor shortages, supply chain issues, and inflationary pressures are affecting many of our customers.
While the economy improve during 2021 labor shortages and supply chain issues and inflationary pressures are affecting many of our customers.
Speaker 2: Despite these challenges, we remain optimistic. Our loan pipelines are solid, and we are looking forward to the successful integration of the Henry County Bank into the Savista family.
Despite these challenges we remain optimistic our loan pipelines are solid.
And we are looking forward to the successful integration of the Henry.
<unk> bank into the service the family. Thanks.
Speaker 1: Thank you for your attention this afternoon, and now we'll be happy to address any questions that you may have. We will now begin the question and answer session. To ask a question, you may press star then one on your touchtone phone. If you're using a speakerphone, please pick up your handset before pressing the keys.
Thank you for your attention. This afternoon and now we'll be happy to address any questions that you may have.
We will now begin the question and answer session.
To ask a question you May Press Star then one on your Touchtone phone.
If youre using a speakerphone please pick up your handset before pressing the keys to withdraw your question. Please press Star then two.
Our first question comes from Terry Mcevoy from Stephens. Please go ahead.
Hi, good afternoon guys.
Speaker 3: There was a step down in operating expenses in the fourth quarter, which I think you addressed in the press release. Anything beyond what was said there, and then maybe looking ahead, can you help us maybe understand what your thoughts are about expense growth given inflation and all the things we're hearing on that topic?
Okay.
There was the step down in operating expenses in the fourth quarter, which I think you addressed in the press release.
Beyond what was said there and then maybe looking ahead can you help us maybe understand what your thoughts are about expense growth given inflation and all of the things we're hearing on that topic. Thank you.
Speaker 2: I'll ask Rich Dutton to elaborate. Rich, you want to elaborate on that? Yeah, and Terry, I think like we talk.
I'll ask rich Dutton to elaborate rich you want to elaborate on that.
And clearly I think like we talked about in the earnings release primary reduction in.
Speaker 4: The primary reduction in non-interest expense was the compensation expense related to commissions on mortgage banking. I think there was also an accrual adjustment related to health insurance that reduced our health insurance expense in the fourth quarter. So now we're starting a new year in the first quarter, so we're going to ramp up the accrual again for health insurance. You'll recall we don't give...
Noninterest expense was the compensation expense related to commissions on mortgage banking I think there was also an accrual adjustment related to health insurance that reduced our health insurance expense in the fourth quarter. So now we're starting a new year in the first quarter. So we're going to ramp up the accrual again core health insurance.
Youll recall, we don't.
Merit increases for.
Speaker 4: let's say on salary until April 1st. So when we look at Q1 non-interest expense, probably a 19.6 million dollar number is a good number and then post that it's probably a 20.7 or 20.8 million dollar non-interest expense number is what we modeled for the rest of the year.
What I will say on salary until April one so when we look at.
Q1, non interest expense, probably at $19 $6 million number is a good number.
And then post that it's probably at 20 point $728 million noninterest expense numbers, what we modeled for the rest of the year.
Speaker 4: I don't know in terms of inflation, again, I think we kind of modeled in what we think is going to happen for merit increases and whatnot, but I suppose the farther we get into the year, the less confident I am in those numbers of that.
I don't know in terms of inflation again, I think we've kind of modeled in what we think is going to happen.
Merit increases and whatnot.
The farther we get into the year, the less confident I am in those those numbers of that.
Great. Thank you rich and then as a follow up there's a lot of buzz on the new Intel factory outside of Columbus, Maybe just remind me what what's your kind of current footprint in and around Columbus and do you think you can capitalize on on what that factor you can do to the economy down there.
Speaker 3: Thank you, Rich. And then as a follow-up, there's a lot of buzz on the new Intel factory outside of Columbus. Maybe just remind me what's your kind of current footprint in and around Columbus, and do you think you can capitalize on what that factory could do to the economy down there?
Sure I think.
Speaker 2: In fact, we had right before that announcement actually bought a branch from a credit union that's about a mile, mile and a half from the site that they'll be developing. It's 3,200 acres that they're developing and bringing 3,000 initial jobs, pretty well-paying jobs. The average salary is going to be somewhere around $138,000.
Our footprint.
And in fact, we had right before that announcement actually bought a branch from a credit Union, that's about a mile a mile and a half from the site that there'll be.
Developing its 3200 acres that they are developing.
Bringing 3000 initial jobs pretty well paying jobs that average.
Salary is going to be somewhere around $138000.
Speaker 2: But there's 7,000 construction jobs, there's talk that they may build additional plants and it could be close to 10,000 employees that they'll be bringing. I think the opportunity is going to be great. You know, our boutique banking model fits in very well. We have a presence in Dublin, Ohio. We also have a presence right outside of Dublin, Ohio. And
But there are 7000 construction jobs. There is talk that they may build additional plants and it could be.
Close to 10000.
Employees that there'll be bringing I think the opportunity is going to be great in our boutique banking model fits in very well, we have a presence in Dublin, Ohio. We also have the presence right outside of Dublin, Ohio and.
Speaker 2: in Plain City, and then we'll have this branch there, but I think it'll also benefit the entire state, Terry. I think there are 150 Intel suppliers in the state of Ohio.
And playing city.
And then we will have this branch there, but I think it will also benefit the entire state Terry I think there are 150, Intel suppliers in the state of Ohio, and Theres talk that some of those suppliers are already seeing.
Speaker 2: and there was talk that some of those suppliers are already seeing increased sales.
Seeing increased sales.
Speaker 4: And that's really throughout our footprint because our footprint covers most of Ohio, so we think that there's going to be tremendous opportunity to capitalize on that investment in the central Ohio, and that, you know, I think will capitalize for the whole state. Good.
And thats really throughout our footprint because of our footprint covers most of Ohio. So.
So we think there's going to be tremendous opportunity.
To capitalize on that investment.
The central Ohio.
And I think well capitalized for the whole state.
Good stuff. Thanks, Thanks Dennis.
Okay. Thanks Terry.
Speaker 5: The next question comes from Bryce Rowe from Hovde Group. Please go ahead. Thanks. Maybe just a quick follow-up question. Yes. I'm sorry. Yes. Yes. Yes. Yes. Yes. Yes. Yes. Yes. Yes. Yes. Yes. Yes. Yes. Yes. Yes. Yes. Yes. Yes. Yes. Yes. Yes.
The next question comes from Bryce Rowe from <unk> Group. Please go ahead.
Thanks.
Maybe just a quick.
Cleanup question there from <unk> questioning.
Speaker 5: Rich, the 20.7, 20.8 kind of...
Rich the <unk>.
Anti <unk> 728 kind of guide so to speak for the second quarter.
Speaker 5: quarter. Does that include the is that a standalone basis or does that also include what you're kind of expecting with
Does that include the Standalone basis or does that also include whats youre kind of expecting with.
And Henry County.
Speaker 4: That's standalone. We've not modeled any Henry County stuff I guess into that number yet. That's a good, that's a good cleanup.
So that stand alone.
Model any Henry County stuff, I guess, and then that number yet that's a good that's a good clean up question.
Speaker 5: All right. Good. All right. That's helpful. Then maybe you guys could speak to, you know, how you're thinking about the rate picture. Maybe just some background around your asset sensitivity at this point, and then what kind of deposit betas you're baking into the asset sensitivity analysis that you project in your accusing case. All right.
Alright, Okay, alright, that's helpful.
And then maybe you guys could speak to.
How you or how youre thinking about the the rate picture.
Maybe just some background around your asset sensitivity at this point and then what kind of deposit betas, you're baking into.
The asset sensitivity analysis.
Your project.
And you're accusing case.
Rich I'll have you go ahead, and if you want to answer that.
Speaker 4: I'll answer it in reverse order and that probably means I'll forget the first question you asked, but I guess we've modeled two ratings.
I'll answer it in reverse order.
It probably means I forget the first question you asked but I guess, we've modeled two rate increases again back end loaded in 2020 to 25 basis points, each which I think is pretty standard with what I've heard anybody else doing again, we're very asset sensitive like you pointed out so rate increases help us.
Speaker 4: Again, back in loaded in 2022, 25 basis points each, which I think is pretty standard with what I've heard everybody else doing. Again, we're very asset sensitive, like you pointed out, so rate increases help us. The deposit beta that we're using, blended, so all non-maturing accounts, the beta is 12 basis points.
The deposit betas that were using it blended so.
All non maturing.
Counts the beta is 12 basis points.
Speaker 4: And that's held pretty steady, gosh, for the last.
And that's held pretty steady.
Cash from Alaska.
Speaker 4: last two cycles anyway. I mean, it's not changed much. You recall we're
Last two cycles anyway.
Changed much you recall were.
Speaker 4: 33% of our deposits are non-interest bearing at all, so that's not even in that number. And I'm not sure, what other questions you asked? I answered two or three.
33% of our deposits are non interest bearing at all so that's not even in that number.
And I'm not sure what other questions you asked me two or three what I what I Miss.
Speaker 2: Nope, you nailed them, I appreciate it. I think I'll just step back. Dave Rice, I would add that a third of our deposits reprice every 30 days, so and then another 6% reprices within one year, so 39% of our portfolio will reprice within a year, but a third of it basically reprices every 30 days. OK. And then.
No.
Adam I appreciate it.
Thanks, Brian .
I would add that a third of our deposits reprice every 30 days.
So and then another 6% re prices within one year, so 39% of our portfolio will reprice.
Within <unk> within a year, but.
A third of it basically re prices every 30 days.
And Dennis you meant to say loan to deposits I think he meant yes.
Speaker 5: Yeah, he meant to say loans. Loans. Loans. Yes, loans. Right. Okay. All right. All right. I'll step back out and let somebody else take it away.
He meant the St loans, both loans, yes loans right.
Alright.
Alright, I'll step back out and let somebody else take it take it away.
The next question comes from Tim Switzer from <unk>. Please go ahead.
Alright, Thanks for taking my question I'm on for Mike Perito.
Speaker 6: Thank you. I do. You guys mentioned in your press – hey, good morning, or good afternoon. You guys mentioned in the press release you had about $100 million of excess liquidity you wanted to redeploy into the –
Thank you.
You guys have in your press Hey, good morning, or good afternoon.
As mentioned in the press release, you had about $100 million of excess liquidity you wanted to redeploy to the investment portfolio.
Speaker 6: I was curious how much of that you already did in Q4, and that was kind of an NII run rate, and then what you expect for Q1, and then I guess how much excess liquidity you'll still have after that.
I'm just curious how much of that you already did in Q4 and that was kind of an NII run rate and then what you expect for Q1, and then I guess, how much excess liquidity you will still have after that if any.
Once factoring in the community Bank deal.
Rich you want to.
Yeah, and forgive me it was a tenant that right yes.
Speaker 4: Yeah, Tim, so I think what we had done at the end of the year was about, I think we had another $20 million of that $100 million to redeploy yet, and I'm not sure where we're at in that process even as of today, but at the end of the year, we still had
Yeah, Tim Yes, yes, Tim So I think what we had done at the end of the year was about I think we have another $20 million of that.
<unk> hundred million to redeploy yet.
And I'm not sure where we're at in that process, even as of today balance in the year, we still had.
Speaker 4: a fair number of the munis that we were looking for. We hadn't purchased those yet.
A fair number of the munis that we were looking for we hadn't had purchased those yet.
What was the rest of your question forgive me.
Speaker 6: Well, if you've already purchased, I guess, $80 million of that, you only have $20 million left. Looking at your end-of-period balance sheet, you still have quite a bit of excess cash. So I'm curious on what your strategy
Okay.
If you've already purchased I guess $80 million of that you'll have $20 million left looking at your end of period balance sheet, you still have quite a bit of excess cash. So I'm curious on what your strategy will be.
Speaker 6: Um with that, you know with the rate purchase or with the rate increases coming, you know, what is
With that with the right purchase area with the rate increases coming what is the pace of purchases you want to maintain on the securities portfolio I think.
Speaker 4: I think we'll catch our breath. As you pointed out, we read the play all that liquidity, and we ended up, I think, with more cash at the end of the season, we did it at the beginning.
Catch our breath as you pointed out we redeploy all that liquidity and we ended up I think with more cash at the end of year than we did at the beginning of the.
Speaker 4: And also, I guess I'd point out that we're coming into our tax season, and so sometime probably mid to late February , we'll again start to process income tax refunds, and we'll generate on average, I think about $300 million in extra cash that'll be on our balance sheet for the first half of the year. So that's another kind of pressure on us.
Fourth quarter, and also I guess I'd point out that we're coming into our tax season.
So sometime probably mid to late February will again start to process income tax refunds and will generate on average.
Think about $300 million and extra cash that'll be on the balance sheet for the first half of the year. So that's another kind of pressure on the margin doesn't impact our net interest income, but it does kind of play a little havoc with our margin.
Speaker 4: … but it does kind of play a little havoc with our margin.
Speaker 4: To answer your question, if we'll get more aggressive in redeployment of
To answer your question, if we will get more aggressive and redeployment.
Speaker 4: liquid assets, I think, will probably kind of sit and wait. We were pretty aggressive early last year. I think we benefited from moving maybe sooner than some of our other bank brothers did. But again, I think we kind of like where we're at. We'd love to make more loans, and it looks like maybe we're going to start making some loans, more loans this year than we did last year. I'll let Chuck talk to that. But that's where we would rather deploy it as opposed to.
Liquid assets, I think will probably kind of sit and wait.
Pretty aggressive early last year I think we benefited from moving maybe sooner than some of our other bank brothers did.
But again I think you can kind of like where we're at.
Would love to make more loans and it looks like maybe we're going to start making some loans more loans. This year than we did last year I'll, let Chuck talk to that but that's where we would rather deploy it as opposed to.
Securities.
Speaker 6: Okay. Thank you. And along with the excess capital that you guys have right now, even with the community bank deal, once that closes, you still have pretty solid capital ratios. Do you have a target TCE ratio?
Okay. Thank you and.
Along with <unk>.
Excess capital that you guys have right now even with the community bank deal once that closes and you still have pretty solid capital ratios do you have a target TCE ratio or anything like that that would kind of help us do that.
Put some parameters around what kind of a share buyback we could see for 'twenty two.
Yeah.
Speaker 4: Yeah, we always kind of target somewhere that 9% to 9.25% range. We think, you know, we're creating excess capital. So, we think that we'll continue, you know, the repurchase program is a great way to deploy some of that excess capital. But I would say that's where we, you know, that 9.25% TCE ratio is probably a good target. All right. Awesome. Thank you, guys.
Yes, we always we always kind of a target somewhere in that 9% to 9% a quarter percent range, we think.
We're creating excess capital so we think that.
We will continue.
The repurchase program is a great way to deploy some of that excess capital, but I would say that's where we're.
At nine quarter TCE ratio is probably.
A good target.
Alright awesome. Thank you guys.
Again, if you have a question. Please press Star then one.
Our next question comes from Russell Gunther from D. A Davidson. Please go ahead.
Speaker 7: Let's go ahead.
Hey, good afternoon guys.
Hi, Russell.
Speaker 8: Hey guys, I want to follow up on the
Hey, guys I wanted to follow up on the margin discussion if I could.
Speaker 2: Maybe get a sense for where you expect the margin to trend near term, given some of the balance sheet dynamics just discussed. And then if you could help size up for us how you're thinking about what each 25 basis point move in Fed Funds means to you guys.
Maybe get a sense for where you expect the margin to trend near term given some of the balance sheets dynamic just discussed and then if you could help size up for us how youre thinking about what each 25 basis point move in.
And fed funds means to you guys.
Rich you want to tackle.
Tackle that one as well.
Speaker 4: I gotta get a drink of water, I'm answering too many questions.
I got to get a drink of water I'm answering too many questions.
Yeah.
Speaker 5: So, Russell, the way we modeled it was I think for each 25 basis point increase in the Fed funds, we think that's probably seven basis points of expansion in our margin. And help me remember what was the first part of your question. No, that's really the gist of it. I was just – prior to the Fed.
So Russell the way we modeled it was I think for each 25 basis point increase in fed funds, we think thats, probably seven basis points of expansion in our margin.
And help me remember what what was the first part of your question.
No that's really the gist and then I was just prior to the fed.
Beginning Brian .
That may be how you would expect your margin to trend given the step down this quarter, but also some of the dynamics, we discussed around excess liquidity deployment of seasonality around the tax business.
Speaker 2: Given the step down this quarter, but also some of the dynamics we discussed around access liquidity deployment, the seasonality around.
Speaker 4: And the tax business certainly puts some downward pressure on it. And I guess the counter to that is we've only got about a million and a half PPP fees left to accrete that will have, at least for this year, kind of molstered the margin. So I suppose maybe it floats along, you know, a few basis points up or down from there. But I think, you know, like everybody else, we're waiting, very asset sensitive, waiting for a.
And in the Tech business, certainly put some downward pressure on it and I guess the counter to that is we've only got about a million and a half of PPP fees left to accrete that perhaps at least for this year.
Most of the margin so I suppose maybe it pulls along a few basis points up or down from there, but I think.
Like everybody else we're waiting.
Asset sensitive waiting for.
Speaker 4: the Fed to make whatever moves they're going to make, and again, those will be helpful to us.
The fed.
To make whatever moves are going to make and again those will be helpful to us.
Speaker 8: Understood. No, that's that's very helpful guys. And then just my last question would go back to the loan growth discussion you guys Put out a order
Understood got it that's very helpful guys and then just my last question would go back to the loan growth discussion you guys.
Put out order of magnitude similar to what Youre able to do this year on a core basis and would just be helpful to get a sense in terms of what you think the drivers of that will be.
Speaker 2: and would just be helpful to get a sense in terms of what you think the drivers of that old.
Speaker 2: from a mix or asset class perspective as well.
From a mix or asset class perspective, as well as the.
Speaker 2: The growth this year, you call that as being very broad based geographically. Just wonder if that would sustain.
The growth this year, you've called out as being very broad based geographically just wonder if that would sustain as well or any pockets of strength there.
Speaker 2: I'll ask Chuck Parcher to answer that question, Russell.
I'll ask Chuck Parcher have any answer to that question Russell.
Speaker 9: Russell, we feel like, you know, that
Russell, we feel like that.
<unk>.
<unk>.
Speaker 9: That projection of them, you know mid to mid to high single digits
That projection.
Mid to mid to high single digits.
Speaker 9: I'm looking forward to is pretty good, you know, kind of, you know, one of the secrets behind the sauce of this year, I guess, was.
Looking forward it is pretty good.
One of the secrets behind the source of this year I guess was we grew $117 million, but at the bank.
Speaker 9: and we grew $117 million but at the bank we track pay-off loan pay-offs over $75,000 for the year and in 2021 we had $236 million of pay-offs in that category
We track payoff loan payoffs over 75000 for the year and in 2021, we had $236 million of payoffs in that category to give you an idea of where that stands as compared to the three previous years averaged $119 million payoffs. So.
Speaker 9: To give you an idea of where that stands as compared to the three previous years averaged 119 million payoffs. So it felt like we had a really successful year.
Felt like we had a really successful year.
Speaker 9: against those headwinds of all those payoffs. Now, we are doing, you know, as we get bigger, we are doing bigger deals and doing a lot of development deals, but we feel like that, you know, one of the things that's going to help is some of those, that payoff number will fall back, we believe, here in.
Against those headwinds of all of those payoffs that we are doing.
As we get bigger we are doing bigger deals and doing a lot of development deals, but we feel like that.
One of the things is going to help with some of those that pay off number will fall back we believe here in <unk>.
In 2022 and for I guess, a little bit more clarification. Those payoffs are not bad payoffs are just they are the result of.
Speaker 9: 2022 and and for I guess a little bit more clarification those payoffs are not bad payoffs. They're just the they're the result of Very successful projects being completed and moving on to the permanent
Of very successful projects being completed and moving onto the Perm market.
<unk> had a secondary question I can't remember what it was though Russell.
Speaker 8: No, that's a great guidepost. I guess the other follow-up would be the mix of the...
No.
Great Guidepost I guess, the other follow up would be.
The mix of that.
Mid to high single digits, and if you think thats going to be a similar composition to what you got done this year.
Speaker 9: Is it going to be a similar composition to what you got done this year? I would tell you it's probably going to be somewhat similar, but obviously we're
I would tell you, it's probably going to be somewhat somewhat similar but.
Obviously, we are.
Speaker 9: heavily a commercial real estate bank. But I do believe we've hired some more C&I people with some C&I focus. And I do think that we've got to focus on trying to move that C&I portion of the book.
Heavily commercial real estate bank, but I do believe we've hired some more C&I people with some C&I focus and I do think that.
We've got a focus on trying to move that C&I portion of the of the book.
Speaker 9: you know, with the investment that Denis has alluded to and is...
Larger obviously and.
With the investment that Dennis alluded to in his.
And speech.
Speaker 2: You know, the Q2 investment was really ramped up our treasury capabilities for commercial customers. And once now that we've got that ramped up, we really feel like we've got all the products and services necessary to bring those middle
The Q2 investment has really ramped up our treasury capabilities for our commercial customers.
Now that we've got that ramped up we really feel like we've got all the products and services necessary to bring those.
Middle market companies on board.
Thanks, Greg.
That's it for me guys. Thanks for taking my questions.
Speaker 2: I would just say that as we grow the bank, you know, we constantly look at our lending limits and things, and, you know, growth does help us make larger loans and stuff, so that'll help us deploy some of the excess liquidity on the balance sheet as well.
I would just add as we grow the bank.
We constantly look at our lending limits and things.
Growth does help us make larger loans and stuff so that will help us deploy some of the excess liquidity on the balance sheet as well.
Speaker 1: Our next question comes from Daniel Cardenas from Benning and Scattergood. Please go ahead.
Our next question comes from Daniel Cardenas from pending and Scattergood. Please go ahead.
Hey, good afternoon guys.
Good afternoon good afternoon.
Speaker 10: Just a couple of housekeeping questions here. How should we be thinking about your tax rate on a go-for it basis? It was a little bit lower than what I was looking for.
Just a couple of housekeeping questions here.
How should we be thinking about your tax rate on a go forward basis was a little bit lower than what I was looking for.
For the quarter, but could you give us maybe a little bit of.
Directional guidance as to how we should be looking at it.
We've been wrong.
<unk>.
Speaker 10: I'm sorry, I jumped again. Yes, we've been bouncing around it at about 15%. I think an effective rate in that, I don't see anything that's changed in the tax preference items that we have or the makeup, the balance sheet that's gonna change that, at least over the next number of quarters, Daniel. So I think that's a good, would be a good number. Kind of what we've done is what I would use going forward. Great. And then on the fee income side.
I'm, sorry, I jumped again, yes.
We've been bouncing around at about 15% I think an effective rate and that I don't see anything thats changed.
The tax preference item that we handle that make up the balance sheet, that's going to change that.
Over the next number of quarters.
Daniel So I think that's a good would be a good number kind of what we've done is what I would use going forward.
Okay great.
Then on the fee income side.
Contributions from the tax business, what's kind of a.
$6 8 million that we saw this quarter is that kind of a good run rate to build off of.
Speaker 4: Am I answering that one, Dennis, or are you? Yeah, go ahead, Rich.
My answer to that one Dennis are you, Yes go ahead rich.
I would say, yes, and again I think we've kind of model in all before the Chuck.
Speaker 4: I would say yes, and again, I think we've kind of modeled it all before to Chuck.
Speaker 4: maybe a little slowdown in mortgage fee income, but I think we also, like Dennis said, I think during his comments, or maybe Chuck said it earlier, we anticipate a little pickup in loan swap fee income to kind of offset that. And certainly that the momentum that our treasury management folks have gained over the past year, I won't see that slowing down. So that ought to be, again, another kind of bright spot for us. And as long as the markets hold, wealth management is what was a strong generator of.
Maybe a little slowdown in mortgage fee income, but I think we also like.
I think during his comments or maybe Chuck said it earlier, we anticipate a little pick up in a while.
Swap fee income kind of offset that and certainly at the momentum that our treasury management folks have gained over the past year I won't see that slowing down so that that ought to be again, another kind of bright spot for us and as long as the markets hold wealth management. It was a strong generator.
Speaker 11: Fee Income Force.
Fee income for us again.
Speaker 4: Again, like Dennis said during his comments, we're kind of hitting on all cylinders, and I would guess, again, X the tax business, it'll be very similar to what we saw last year.
What I said during his comments are and what kind of hitting on all cylinders.
And I would guess again ex the tax business that'll be very similar to what we saw last year.
Speaker 11: We feel pretty good. I would think that the fourth quarter would be a decent proxy for the first quarter in terms of non-interest income with the addition.
We feel pretty good.
I think that the fourth quarter would be a decent proxy for the first quarter in terms of non interest income.
With the addition of the pack money too.
Speaker 2: And the tax money comes in what months which will come some in the first quarter, some in the second.
And the tax money comes in what months.
Will it come some in the first quarter some in the second.
Speaker 4: Exactly. I would model the exact same cash flows that we had last year, this year, and I bet you'll be pretty accurate.
Exactly I would model the exact same cash flows that we had last year this year.
But you'll be pretty accurate.
Good. Thank you and then just quickly.
Speaker 10: And then just quickly, what was your CRE to total risk-based capital ratio at the end of the year? And then just briefly, what was your CRE to total risk-based capital ratio at the end of the year? And then just quickly, what was your CRE to total risk-based capital ratio at the end
What was your CRE to total risk based capital ratio at the end of the year.
There was 291, 5%.
Speaker 4: We pushed down about 50 million of that 75 million we raised to the bank and then we had a little bit of growth and ended up at the 291 and a half percent. Okay.
We pushed down about $50 million of that $75 million.
The raise to the base, where we had a little bit of growth and ended up with a 291 in 291, 5%.
Okay.
And the acquisition as opposed to hopefully bring that number down a little bit.
Speaker 12: The air can you make acquisition will just slightly move that will you know won't bring it down for you know a whole lot But it will go down maybe it without any grows would go down some You know just looking at the number today if we had to them make go down just slightly but not significantly
The community Bank acquisition will just slightly move that.
We'll bring it down.
A whole lot, but it will go down maybe without any growth would go down some.
<unk>.
Just looking at the number today and if we added them might go down just slightly but not significantly.
Alright.
Step back for right now thank you guys.
Okay.
Alright. This concludes our question and answer session I would now.
To turn the conference back over to Dennis Shaffer for any closing remarks.
Speaker 4: In closing, I just want to thank everyone for listening and thank those that participated on the call. Again, while we are pleased with the results of our fourth quarter and the year, we think that 2022 will be full of new challenges for us. So we look forward to meeting those challenges and look forward to talking to you all again in a few months to share our first quarter results. So thank you for your time today. The conference is now
Well in closing I, just want to thank everyone for listening and thank those that participated on the call.
While we are pleased with the results of our fourth quarter and.
The year.
We think that 2022 will be full of new challenges for us. So we look forward to meeting those challenges and look forward to talking to you all again in a few months to share our first quarter results. So thank you for your time today.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
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