Q4 2022 Civista Bancshares Inc Earnings Call
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Bancshares here in 2022 earnings conference call.
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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, Oh Sure Vista Bancshares, Inc.
The 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 for the most directly comparable GAAP measures. The press release also available on the company's website.
The financial and other quantitative information to be discussed today as well as a reconciliation of the GAAP to non-GAAP measures.
This call will be recorded and made available on <unk> Bancshares' website at Www Dot C. I V B dot com.
At the conclusion of Mr. Shaw for his remarks today.
The rest of management team.
Any questions you may have.
Now I will turn the call over to Mr. Schafer. Please go ahead Sir.
Good afternoon. This is Dennis Shaffer, President and CEO of citizen Bancshares now I would like to thank you for joining us for our fourth quarter 2022 earnings call I'm joined today by Rich Dutton.
SVP of the company and Chief operating officer of the Bank.
Furniture SVP of the company and Chief lending officer of the bank and other members of our executive team.
Let me start by noting several significant accomplishments or transactions that occurred during the fourth quarter.
This morning, we reported earnings for the fourth quarter of 2020 to $12 $1 million or <unk> 77.
Per diluted share, which represents a 5% increase over the prior year's fourth quarter.
Our full year results or net income of $39 4 million or $2.60 per diluted share for the year ended December 31, 2022, which is consistent with our prior year net income of $45 million.
During the year, we completed two acquisitions expanded in central Ohio at record organic loan growth and achieved near record profits I wanted to take this opportunity to thank all of our employees for their commitment to the organization for their good work and helping.
To achieve these accomplishments.
Our return on average assets was 141% for the quarter and one point to 1% for the year, while our return on average equity was 16, 9% for the quarter and $12 four 7% for the year.
If we adjust for the $2.9 billion in non recurring expenses associated with the acquisition of community Bank Corp, which closed on July one and the $814000 in nonrecurring expenses associated with the acquisition of envision Financial Group Inc.
Which closed on October 1st our earnings per share what is that 88 cents for the fourth quarter and $2 80 for the year.
During the quarter loans and leases grew by $218 $3 million or an annualized growth rate of 37, 5%.
Excluding loans and leases from our <unk> acquisition, which occurred during the quarter net loans grew by $159 million or at an annualized rate of 25, 7%. While we are pleased with <unk> contribution. It was our strong loan growth that drove our COO.
Early earnings.
Excluding the addition of loans and leases that came to us through community Bank and vision financial and adding back the repayment of $46 million in PPP loans, we experienced $356 $8 million in organic loan growth for the year, which is an annual growth rate of 18.
<unk>, 3%.
Our net interest margin expanded by 11 basis points compared to the linked quarter and by 72 basis points when compared to the prior year quarter.
For the year, our net interest margin expanded 28 basis points when compared to the previous year to 375%.
This is a reflection of our strong core deposit franchise and the disciplined approach we take in managing our deposit rates.
In early October we announced and closed on the acquisition of vision financial group, a small equipment leasing and finance company based in Pittsburgh, Pennsylvania that originates leases in the malls nationally.
All equipment leasing represents a new line of business for US we were looking for other revenue sources to help diversify our income in leasing which is a natural extension of our lending products will help us do that.
Also in October we successfully completed the system conversion of community Bank and now have them operating on our legacy system, which will allow us to offer our standard suite of products to customers in northwest, Ohio, and the Toledo MSA.
Now, let's turn our attention to our performance for the quarter and for the year.
Net interest income increased $2 $1 million or 7% over the linked quarter and $9 $2 million or 39, 6% over the same quarter in the prior year.
Our net interest income for the year increased $14 $8 million or 15.5% compare to 2021 the.
The increase was primarily the result of strong organic loan growth across our footprint, a rising interest rate environment, our disciplined approach to managing deposit rates and the addition of community Bank Corp, and vision financial in the latter half of the year.
Our net interest margin was $4, one 4% for the quarter and 375% for the year both measures reflect expansion over the comparable 2021 periods. Similarly, our margin expanded by 11 basis points over the linked quarter from 4.03 person.
The 4.14%.
Our yield on earning assets increased by 118 basis points compared to the prior year quarter and by 51 basis points over the linked quarter as our team originated new loans and existing loans on our books continue to reprice at higher rates and our yield on earning assets.
For 2022 grew by 43 basis points compared to the same period in 2021, even though our 2021 loan yields were augmented by the accretion of 11 and a half million dollars in P. P P interest and fees.
Funding costs for the quarter and for the linked quarter increased by 41 basis points, while our year over your funding cost increased by 15 basis points, we have always and continue to negotiate rates with our large depositors. We are starting to feel some deposit rate pressure and in mid day.
Sandburg.
To remain competitive we increased our offering rates on higher tiered money market accounts and select time deposits in conjunction with the Fed's most recent blue.
Our non interest income remained solid increasing $4 $3 million over the linked quarter, while the quarter included $3 $9 million in revenue from our leasing company. We also experienced increases in virtually every non interest income categories over our linked quarter as we continue to focus on.
By strengthening our non interest income.
If we back out the impact of the $1 8 million dollar gain on the sale of our visa destock that occurred in the second quarter of 2021, our non interest income for the year of $49 $1 million was comparable to that of the previous year.
The increases in service charges and leasing revenue offset declines in our gain on sale of mortgage loans.
Service charges continue to be a strong contributor increasing $185000 compared to the linked quarter and $1.2 million over 2021.
Noninterest expenses increased $4 $2 million or 18, 4% in comparison to the linked quarter. The increase was primarily the result of $637000 of nonrecurring expenses associated with the acquisition of vision financial groups and one five.
Dollars.
In non recurring expenses associated with the conversion of community Bank systems, and severance payments to former community bank employees during the quarter. Excluding these one time expenses non interest expenses would have increased by eight 8% primarily on additional compensation expense.
Related to our new employees.
Noninterest expense increased $12 8 million or 16, 5% year over year as the $3 $7 million of prior year balance sheet restructuring costs were replaced by increases in compensation expense occupancy expense software maintenance expense professional fees and other nonrecurring.
Sensors related to our community Bank envision financial group transactions, excluding nonrecurring expenses noninterest expenses for the year would have increased by 11, 7% primarily on additional compensation and occupancy expenses related to our new employees.
And additional facilities.
Total expenses related to community Bank envision financial transactions were in line with expectations and totaled $3 $8 million for the year.
Our efficiency ratio was 63, 2% and 64% year to date, if we had adjusted for one time deal costs, our efficiency ratio for each of them experience would have been 58, 2% and 61, 4% respectively.
Turning to the balance sheet.
Year to date, our total loans increased by $548 $8 million, which includes the addition of $167 $5 million of loans from community Bank 67, $5 million in loans and leases from vision financial group and a $42 6 million dollar repaint.
And P. P. P loans, excluding the community Bank vision financial group and P. P. P loans, our loan portfolio grew by $356 $8 million or on an annualized basis of 18, 3%.
Making the same adjustments for our fourth quarter organic loan growth was $158 $6 million or 29, 2% on an annualized basis. This growth was attributable to strong commercial loan demand in virtually every one of our markets.
Along with our strong year to date loan production, we continue to have commercial construction projects at various stages of completion.
Our undrawn construction lines remain near record highs and we were $162 million at December 31, 2022.
While we believe the higher interest rate environment will inevitably slow the economy and loan growth. We believe our loan portfolio will grow at a mid single digit rate for at least the first half of 2023.
On the funding side, we reported $203.3 million increase in total deposits from year end 2021, and 2022 with increases in every deposit categories, except interest bearing demand accounts as customers migrated into higher yielding deposit accounts.
If we weren't able to exclude the deposit accounts acquired from community Bank total deposits would have been unchanged from year end 2021, and 2022, although we would have seen a similar migration from interest bearing demand and savings accounts into higher yielding time deposits.
We continue to focus on attracting noninterest bearing demand accounts, which made up 34, 2% of our total deposits at year end. These accounts are primarily made up of operating channels of our business and municipal customers.
We continue to believe our to pay at the deposit franchise is one of them. So this is most valuable characteristics and contribute significantly to our peer leading net interest margin and profitability.
Despite the uncertainties associated with the economy, we have not seen any deterioration of our customers' financial positions across our footprint. In fact, you're in classified loan levels have improved and are below pre COVID-19 levels, while we did make a $752000 provision during the quarter.
It was solely attributable to growth in our loan and lease portfolio rather than economic stress. In addition, we realized $118000 in net recoveries during the year.
The ratio of our allowance for loan losses to loans at year end declined slightly from December 2021, and 133% to 1.12% as did our allowance for loan losses to nonperforming loans, which was 261, 45% at December 31 2022.
Compared to 496, 1% at the end of 2021.
Note that if we include the credit Mark of $5 $4 million associated with community Bank slows and fishing financial groups, what leases our ratio of allowance for loan losses to loans would have been 133% at the end of the year.
As we look forward to the adoption of seasonal in the first quarter of 2023, we anticipate increasing our allowance for credit losses by $3 $3 million and recording a liability for unfunded commitments of $3 $4 million. These initial entries will not impact earnings as they will be.
A recorded through equity.
Longer term interest rates have moderated the higher interest rate environment continues to put pressure on bolt ons.
Yes, although unrealized losses in our securities portfolio began to moderate in the fourth quarter, we did experience a $67 $4 million decline in other comprehensive income from December 31, 2021 to December 31, 2022 related to unrealized losses.
And our investment portfolio.
As a result, we ended the quarter with tangible common equity ratio of 591% compared to $9 two 5% at December 31 2021.
Despite this decline our tier one leverage ratio at December 30, <unk> was 892% and remains well above what is deemed well capitalized for regulatory purposes.
So that's the continues to create capital through earnings and our overall goal remains to have adequate capital to support organic growth and potential acquisitions two important parts of our capital management strategy continues to be the payment of dividends and share repurchases. We continue to believe.
Our stock is a value.
We did slow the pace of repurchases during the fourth quarter, we did repurchased 7205 shares of common stock for $152400 at an average price of $21 15 per share for.
For the year, we repurchased 742008.
In Europe .
And <unk> shares at an average price of $22 58 per share. This represents 5% of our shares that were outstanding at December 31, 2021, we have an authorization of approximately $6 $1 billion remaining in our current repurchase program.
As you know we had envisioned financial group, a small equipment leasing and finance company to service in October we have retained their management team and are well on our way to integrating them into our organization vision.
Vision originated $46 million in leases and loans during the fourth quarter at a weighted average yield of nine 2% and we have budgeted them to originate $164 $5 million in leases and loans during 2023.
In summary, we are pleased with another quarter and year of excellent earnings exceptional loan growth solid credit quality I would like to say again, none of this would be possible without the efforts of our team. So this is fortunate to have people who care about our shareholders our customers are.
Communities and each other.
Despite the uncertainty surrounding interest rates and the greater economy as well as the inflationary pressures. We're all facing we remain optimistic businesses and consumers across our footprint continue to have strong balance sheets, our loan pipelines remain solid and we have successfully integrated opinion of bank envision.
It'll group into the family.
Thank you for your attention. This afternoon now we'd be happy to address any questions that you may have.
Thank you Sir we will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone.
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And today's first question comes from Terry Mcevoy with Stephens. Please go ahead.
Hi, good afternoon, everyone.
Sure.
Maybe.
You talked about mid single digit loan growth could you maybe discuss your deposit strategy or just overall funding strategy. If the industry continues to experience an outflow of deposits.
Yeah sure I think you know, we're a little bit unique in that we have our tax program in that first half of the year. So we try to manage to that as well we will see an influx of deposits, what we'll be able to use.
They go in and out of those balances are so big they roll in so they won't be able to use some of that they kind of pay down borrowings that we have so we can kind of manage our deposits to that.
We continue to believe we do have a pretty strong core deposit franchise. You know there was noninterest accounts are we do think that there'll be you know funds moving out of those accounts and migrating into.
Higher yielding.
Money markets, where she said we have well we do think we have a loyal deposit base that.
Is that necessarily doesn't need that we don't need necessarily pay the highest rate. We do take our you know our deposit beta for the year was berserk virtually nothing we were about 11 basis points in that fourth quarter. So we do think the deposit betas are going to move quicker than you know until 2020.
Three so we will have to get a little bit more aggressive in our deposit pricing, but we still don't think we have to be the highest paying vague.
Bank there to retain deposits, we want to be competitive and offer fair rates to our clients are but.
Again, we think that we have a strong core deposit base I think that's really going to be the telling sign for banks as as we move forward, you're going to really see which banks have strong core deposits in which banks do not so.
Yeah, that's kind of how we're headed but we will probably have to be a little bit more aggressive here in 'twenty three than we were in 'twenty two.
Okay. Thanks for that and then as a follow up the leasing or lease revenue and residual income of $2 3 million.
I had my notes from last quarter that there was some residual income booked at the end of the deal.
Maybe asking what do you see more normal is that a normal run rate going forward or was there some incremental gains in the fourth quarter given that the deal closed.
Terry This is rich and certainly that lease revenue and residual piece of it makes it kind of lumpy, but I don't know that we're.
Leasing experts enough yet to tell you that the fourth quarter was different than what we expect going forward I think I would use that as typical.
And until we tell you otherwise and I think it looks pretty reasonable for from what we have heard from our newest members of the team and what we've seen.
I wouldn't say, it's all right I mean, you know normal under normal beefing.
Production, you know fourth quarter is usually a little higher quarter than first or second quarter, usually kind of gets back end loaded a little bit. So I guess as rich said, we'll give you more guidance as we kind of go along here.
That's great I appreciate it thank you.
Sure.
Thank you and our next question today comes from Manuel Novartis with D. A Davidson. Please go ahead.
Hey, good afternoon.
Alright.
Okay. Good.
As we look at that mid single digit loan growth target.
A good portion of that is the lease originations.
Or are you still planning to keep a good portion of those on balance sheet, just kind of can you walk through the mid single digit.
Loan growth and mix them.
In 2020 in the early half I guess, the only first half of the year.
What are kind of your expectations there.
I guess as we kind of did the forecasting for the year I would tell you the mid single digit.
Growth rate was really for what I would call. The bank length of bank loan portfolio. You know and then we're going to layer on top of that you know.
I think our projection was I think a 106 roughly $165 million of production on the leasing side, we've kind of modeled it out right now and well just to say, we're going to hold about half and and sell about half into the marketplace.
Obviously as we look at our funding throughout the year will probably move that one way or the other little bit but bottom line is that's kind of how we got to model out.
Okay. That's that's helpful.
Okay.
Yeah.
With kind of the pricing changes.
At the end of December and the deposit book.
The deposit portfolio.
What are you what are kind of our expectations of that hasn't had the beta changed at all like what are you kind of targeting going forward at any.
Kind of firm guidance on that.
The debate of Veda will definitely change I think really good as I alluded to in my comments.
You don't get a little bit more aggressive there Richard any guidance there for them as well I mean, I think our deposit beta for the fourth quarter was 11 11 basis points and I think what we model going forward is probably more like that.
Oh C 12.
Basis points.
Again, I think we've had a lag and we will continue to lag, but I think <unk>.
<unk> increases our deposit rates is going to pick up.
But again I think first half of the year youre going to see our margins continue to expand.
And it kind of depends on what the fed does.
On the back half of the year, but I don't see a compressing and it will expand to a point and probably hang out there until until a bed.
Makes a big move up or down and we keep watching the I think that the.
You know kind of the slope of this interest rate curve you know it is it's gotten a little bit more inverted.
So I think you'll see us I think probably other banks trying to on the lending side pushed to their loan yields are pushed their spreads up.
More I think you know they were keeping pace with the velocity of the interest rate increases and I think you'll see that more normalize a little bit in 'twenty three at least for us we're going to try to push our loan spreads.
Lease spreads up as we go into 'twenty three as well.
Okay.
Okay. That's helpful Ed.
And you can kind of get somebody your normal seasonal inflows of deposits in the first half of the year.
Oh.
How low how much of the borrowings cannae payback are you targeting to kind of get back to.
Three or four key levels like how and how quickly.
Well I mean I guess.
Ever know, but over the last two or three years I would tell you that our average.
Positive outlook on the tax program in the first quarter have been right around.
And then ran from AST kind of finding.
240, $250 million and that's been pretty steady each of the last two or three years. So we can payback starting sometimes a week in February 'twenty, one, we'll see that money starts to flow in and it'll be a bunch more in the beginning but again over the whole quarter. If you averaged it.
It's about $240 million is what we anticipate.
And would that go off.
Walter borrowings.
Yeah.
Yeah, Yeah, that's right and we've got we're borrowed overnight, but at the end of the year with $390 million I think is what we work so yeah.
That's what it's for.
Okay.
<unk>.
And.
I think I missed it I am sorry about that what are where are the V.
D F G well, our loans and leases yielding currently.
At nine 2% it was.
Well, what we originally thought.
Water production average score was nine 2%.
Okay.
Thank you for that I'll I'll step back into the queue.
Thank you.
Ladies and gentlemen, as a reminder, if you'd like to ask a question. Please press Star then one.
Next question comes from Tim, Switzerland, Okay. BW. Please go ahead.
Hey, good afternoon I'm on for Mike. Thanks for taking my question.
Yes, I do.
I wasn't talking about the loan growth guidance real quick for mid single digit you know it seems like that's a little bit of a deceleration from the recent momentum you guys have had on an organic basis.
Now is there some conservatism in there.
I'm, just kind of given the economic uncertainty and you know like if the economy holds up.
Zero.
Some upside yes.
There there might be Tim this is Chuck.
Yeah.
We're trying to you know we've been normally if you look backwards somewhere between mid to high single digit shop now last year, obviously, we had a fantastic year.
Wines are down a touch as compared to where they were going into the fourth order. We know we've got a couple of large payoffs coming you know one on a completed project in one of our larger companies are sold and will be paying off here in the first quarter. So we might be a little bit conservative I mean, the pipelines aren't.
Or aren't bad by any stretch of imagination.
The relatively solid we just don't see quite the same momentum right now going into the into the first quarter end and to be absolutely. What we're seeing more than anything it's more I would tell you larger deals, but less deals I think the people that have a lot of capital still out in the marketplace. We are still doing deals put more money into there.
Deals to make them work based on the cap rates are today and the interest rates are today, but we don't see the same number.
The smaller demand has fallen back a little bit.
Yeah.
Okay, I gotcha, and what about like you know geography wise you know as you know can you talk about maybe the Columbus, and Toledo area and I know, you're probably trying to look to hire some new lenders in those.
But as you know can you give us some update on how that's yeah. Yeah, you know it's.
You know I would tell you as we look backwards.
Cleveland was our biggest or largest growing market last year, but Cleveland Cincinnati Columbus, We're all really good markets for US you know I would tell you in Columbus, we'd do a lot more trading of dollars could we do a little bit more development lending down there. So you know what.
Finishing deals they get paid off and do the next deal you know a lot of a lot of activity down there we will keep it a lot more stuff on the books in Cleveland and Cincinnati, they've been very good Toledo, we're just starting to really kind of ramp up a little bit we lost an employee over there through the community bank fees and just yesterday actually hired two people.
Just to start in that marketplace.
Going forward one of them Oh 28, your person from Huntington and the other one a 12 plus your person from state Bank. So we really feel like we've upgraded our talent over there and upgraded really are our potential marketplace.
Be spending a little bit more time over there in the first quarter now that we're getting kind of past that.
The the vision financial piece of that as well so we're looking to the ramp up here in the <unk>.
In 2023 for sure and we think we have opportunity really you know and then just as we mentioned in our comments I think we've had you know.
Growth throughout our footprint, you know Cleveland spend a little bit unique in the fact that they probably had a little bit more M&A unrest are when you look back over the last five years, you know you had the Huntington Firstmerit.
Firstmerit deal the Huntington Tcf, you know you had cortland that was playing in that market a little bit far worse bought them. So they've got a little bit more unrest, which has created opportunity for us and Columbus, you know you've got just tremendous growth going on down there with what Intel when Amazon and others are going in the air.
Area Cincinnati is a a consolidating market when you look at the community Bank. So you know we think we have.
Can make tremendous inroads there and then Toledo as Chuck was talking about it and that's an area. That's you know Chuck.
Most of us as a banking career was in that Toledo market. So we know the businesses. We have we know the bankers we have contacts. So we think we have tremendous opportunity in all of those markets to continue to make inroads.
Okay.
Okay, great. Yeah, I appreciate all that color was really helpful.
Can we move to expenses just real quick you know do you guys.
Kind of looking at the core run rate here and you should be getting some more community bank.
Cost saves.
As we're exiting 2023 is like.
24, 24, and a half million of quarterly run rate is that kind of like a reasonable expectation you know I guess cost saves offset by some inflationary expenses in investment.
We would love to hit that number.
I think if you back out the one time stuff fourth quarter noninterest expense was about 25 1 million.
What we're saying for the first quarter of next year is 26.4.
Forecasting.
Because we'll have more payroll expenses attached to that.
In the first quarter second quarter next year, we'll have our merit increases.
We're looking at probably at $27 1 million.
Second quarter noninterest expense and that I think barring any significant changes in terms of initiatives or what would be a number that I used to run out the rest of the year.
Gotcha, Okay, that's pretty clear.
Thanks for taking all my questions.
Okay. Thank you.
And our next question today comes from Daniel Cardenas with Janney Montgomery Scott. Please go ahead.
Hey, good afternoon guys.
The annual meeting.
A couple of housecleaning questions for me.
On the margin that you posted this quarter, how much yield accretion was baked into that number.
Oh, how should we look at it in 'twenty three.
So.
Purchase accounting in the fourth quarter was about six basis points of that so without that it would've been six basis points lower.
Oh and actually for the year. It was the same number just kind of work out that way.
Yeah.
And I would think going forward is as good a number as aimed to use for the next three or four quarters anyway. I mean, it might makes his 0.1 way or the other but I think it's everything's in.
Okay. Good and then on the credit quality front didn't notice a bit of an uptick on your non performers are linked quarter, what what what was driving that.
Hi, This is Paul I'm not nothing significant we have one hotel, but it has been shut down not necessarily for COVID-19 reasons, but because of some mechanical issues.
And the sponsor has been covered them and then finally oh.
Stopped paying so that's a big chunk of it.
You got to remember we brought each C. B N as we've shifted some of the culture in terms of the consumer portfolio. Some of that stuff is falling in there.
Our lives out instead of that a trend, it's just more a fluctuation as far as what we're doing.
Okay.
Alright fair enough and then tax rate.
17% assumption still kind of a good assumption for you guys.
<unk>.
Page here Daniel.
Yeah.
Yeah.
Oh, it's about 16 16 points.
Yep.
60, and voice out of Nashville.
Okay.
All right all my other questions have been asked and answered thanks guys. Thank.
Thank you okay. Thank you.
And our next question today is a follow up from her remarks with Stephens. Please go ahead.
Hi, Thanks, just wanted to follow with a question on capital management will be capital impact from seasonal that'd be phased in over three years and then just what are your thoughts here on on building a building capital over.
Over the next few quarters.
Okay.
Paul can correct me, but it will be baked in over three years it'll immediately happened in this first quarter.
So Paul is nodding so.
[laughter] right answer and then I think we you know as we move forward you know, we're going you know where we're growing our capital our earnings we have strong earnings we're going to continue to be there we're going to be very mindful of how we handle you know share repurchases and things like that you'll notice that we've really pulled back.
Called out in the fourth quarter and so I think we're just continuing to be mindful. There are as we move forward.
Our capital levels are pretty strong we do want it can we think the TCE.
You know it was really kind of flat at fourth quarter, we had the acquisition in there that impacted us as well.
So we think that that will continue to.
Start going the other direction.
There are for us.
In the in the 'twenty three for us.
And maybe since I've got you and this is the platform. He asked the question I mean, you you acquired a bank integrated you are.
He hit the ground running with the leasing company deal. So I guess my question is what are your thoughts on non bank or bank M&A and in 2023 for for your company.
Well I think we we obviously will continue to explore that and we want to continue to grow if it's the right deal for us and we can do it in a profitable manner that benefits you know our shareholders employees and customers. We wanted to try to do that you know there was some greater challenges right now when you do an M&A deal.
Deal with all of the OCI adjustments that we have to look at the marks that are you know you have to give them the credit portfolios, but it doesn't scare us away, we think we've been very.
Successful in doing M&A deals.
We think we integrate piece pretty well.
So we're gonna go ahead, because they continue to be actively.
You know looking and pursuing other deals we want to get to a certain size.
Because we think we continue to get more we become more efficient as a company.
So we'll continue to have dialogue and if the right deal comes along and it's the right fit for our company, we will pursue that.
Great. Thanks for taking my questions.
Yeah. Thank you.
This concludes our question and answer session I'd like to turn the conference back over to management team for any final remarks.
Thank you in closing I, just want to thank everyone for listening and thank those who participated in the call again, we were very pleased with the results of our fourth quarter and for the year, It's a very very strong year for.
For us and well talk with 23, one now will be another year of bold new challenges, we look forward to meeting those challenges and to talking to all of you again here in a few months to share our first quarter results. So thank you for your time today.
Thank you Sir This concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful evening.