Q3 2025 Civista Bancshares Inc Earnings Call

Speaker #3: Before we begin , I would like to remind you that this conference call may contain forward looking statements with respect to the future performance and financial condition of CIVISTA BANCSHARES, INC. .

Operator: Before we begin, I would like to remind you that this conference call may contain forward-looking statements with respect to the future performance and financial condition of Civista Bancshares Inc. that involve risk 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 statement made during the call. Additionally, the management may refer to non-GAAP measures which are intended to supplement but not substitute the most directly comparable GAAP measures. The press release, also available on the company's 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 #3: That involves risk and uncertainties . Various factors could cause actual results to be materially different from any future results expressed or implied by such forward looking statements .

Speaker #3: 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 statement made during the call .

Speaker #3: Additionally , the management may refer to non-GAAP measures , which are intended to supplement but not substitute , the most directly comparable GAAP measures .

Speaker #3: The press release also available on the company's website , contains the financial and other quantitative information to be discussed today , as well as the of GAAP to non-GAAP measures .

Speaker #3: This call will be recorded and made available on Civista Bancshares, Inc. website. At the conclusion of Mr. Shaffer's remarks, he and the management team will take any questions you may have.

Operator: This call will be recorded and made available on Civista Bancshares Inc.'s website at www.civb.com. At the conclusion of Mr. Shaffer's remarks, he and the Civista management team will take any questions you may have. Now, I will turn the call over to Mr. Shaffer.

Speaker #3: Now, I will turn the call over to Mr. Shaffer.

Speaker #4: Thank you. Good afternoon. This is Dennis Shaffer, President and CEO of Civista Bancshares, Inc., and I would like to thank you for joining us for our third quarter 2025 earnings call.

Dennis Shaffer: Thank you. Good afternoon. This is Dennis Shaffer, President and CEO of Civista Bancshares Inc., and I would like to thank you for joining us for our third quarter 2025 earnings call. I am joined today by Charles A. Parcher, Executive Vice President of the Company and President of the Bank, Rich Dutton, Senior Vice President of the Company and Chief Operating Officer of the Bank, Ian Whinnem, Senior Vice President of the Company and Chief Financial Officer of the Bank, and other members of our executive team. This morning, we reported net income for the third quarter of $12.8 million or $0.68 per diluted share, which represents a $4.4 million or 53% increase over the third quarter in 2024 and a $1.8 million or 16% increase over our linked quarter.

Speaker #4: I am joined today by Chuck Parker , EVP of the company and president of the Bank . Rich Dutton , SVP of the company and chief Operating officer of the bank , Ian Williams , SVP of the company and Chief Financial officer of the bank and other members of our executive team .

Speaker #4: This morning we reported net income for the third quarter of $12.8 million , or $0.68 per diluted share , which represents a $4.4 million , or 53% increase over the third quarter .

Speaker #4: In 2020, we reported a net income of $1.8 million, a 16% increase over our linked quarter. This also represents an increase in pre-provision net revenue of $4.9 million, or 45%, over our third quarter.

Dennis Shaffer: This also represents an increase in pre-provision net revenue of $4.9 million or 45% over our third quarter in 2024 and a $1.9 million or 14% increase over our linked quarter. Net interest income for the quarter totaled $34.5 million, which is in line with the linked quarter. As a reminder, last quarter included a one-time $1.6 million adjustment stemming from the conversion of our core lease accounting system. This non-recurring item boosted net interest income and contributed to our second quarter reported margin of 3.64%. As a result, our net interest margin declined by six basis points to 3.58%. However, excluding the prior quarter's adjustment, our margin would have been 3.47%, resulting in an 11 basis point expansion in our margin. Our funding cost for the quarter declined by five basis points to 2.27%, which is 34 basis points lower than the previous year's third quarter.

Speaker #4: In Q3 2025, we reported a net income of $1.9 million, which represents a 14% increase over our linked quarter. Net interest income for the quarter totaled $34.5 million, which is in line with the linked quarter.

Speaker #4: As a reminder , last quarter included a one time , $1.6 million adjustment stemming from the conversion of our core lease accounting system .

Speaker #4: This non-recurring item boosted net interest income and contributed to our second quarter reported margin of 3.64% . As a result , our net interest margin declined by six basis points to 3.58% .

Speaker #4: However, excluding the prior quarter's adjustment, our margin would have been 3.47%, resulting in an 11 basis point expansion in our margin.

Speaker #4: Our funding costs for the quarter declined by five basis points to 2.27% , which is 34 basis points lower than the previous year's third quarter .

Speaker #4: In July , we successfully completed our follow on common stock offering , issuing approximately 3.78 million new shares in raising $80.5 million of new capital .

Dennis Shaffer: In July, we successfully completed our follow-on common stock offering, issuing approximately 3.78 million new shares and raising $80.5 million of new capital. This additional capital will allow us to continue growing our franchise by accelerating organic growth, investing in technology, people, and infrastructure. More immediately, we used our new capital to reduce overnight borrowings and to strengthen our tangible common equity that we thought might have weighed on our stock. Earlier this month, we also announced that we have received regulatory approval from both the Federal Reserve and the Ohio Department of Financial Institutions to complete our previously announced merger of Farmers Savings Bank into our bank. Farmers will hold their shareholder meeting to formally approve the merger agreement on November 4, and we plan to close the transaction shortly thereafter. Our teams have already begun preparations for a successful system conversion in early February of 2026.

Speaker #4: This additional capital will allow us to continue growing our franchise by accelerating organic growth, investing in technology, people, and infrastructure more immediately. We used our new capital to reduce overnight borrowings and to strengthen our tangible common equity that we thought might have weighed on our stock.

Speaker #4: Earlier this month . We also announced that we have received regulatory approval from both the Federal Reserve and the Ohio Department of Financial Institutions to complete our previously announced merger of Farmers Savings Bank into our bank .

Speaker #4: Burglars will hold their shareholder meeting to formally approve the merger agreement on November 4th, and we plan to close the transaction shortly thereafter.

Speaker #4: Our teams have already begun preparations for a successful system conversion in early February of 2026 . We look forward to welcoming farmers , employees and customers into the Vista family .

Dennis Shaffer: We look forward to welcoming Farmers' employees and customers into the Civista family. Earlier this week, we announced a quarterly dividend of $0.17 per share, which is consistent with the prior quarter. Based on September 30 closing market price of $20.31, this represents a 3.3% yield and a dividend payout ratio of nearly 25%. During the quarter, non-interest income increased $3 million or 46.2% over the linked quarter and was consistent with the third quarter of 2024. The primary driver of the increase from our linked quarter was a $1.4 million increase in fees related to leasing operations. This increase was attributable to a $1 million reduction in fee income resulting from a non-recurring adjustment in the second quarter of 2025 related to the Civista leasing and finance core system conversion, coupled with increased leasing activity in the third quarter of 2025, resulting in a $0.3 million increase in revenues.

Speaker #4: Earlier this week , we announced a quarterly dividend of $0.17 per share , which is consistent with the prior quarter based on September 30th closing market price of $20.31 .

Speaker #4: This represents a 3.3% yield and a dividend payout ratio of nearly 25% . During the quarter , noninterest income increased $3 million , or 46.2% , over the linked quarter , and was consistent with the third quarter of 2020 .

Speaker #4: For the primary driver of the increase from our linked quarter was a $1.4 million increase in fees related to leasing operations . This increase was attributable to a $1 million reduction in fee income resulting from a non-recurring adjustment in the second quarter of 2025 related to the leasing and Finance core system conversion , coupled with increased leasing activity in the third quarter of 2025 , resulting in a $300,000 increase in revenues .

Speaker #4: Noninterest income for the quarter was 9.6 million , which was consistent with the prior year's third quarter . We did experience a $494,000 decline in leasing fees on fewer originations .

Dennis Shaffer: Non-interest income for the quarter was $9.6 million, which was consistent with the prior year's third quarter. We did experience a $494,000 decline in leasing fees on fewer originations. However, this decline was offset by increases in nearly every other non-interest income category. We continue to focus on controlling expenses. For the quarter, non-interest expense was $28.3 million, which represents an increase of $845,000 or 3.1% over the linked quarter. However, the primary driver of the increase was $700,000 in non-recurring acquisition expenses related to the merger with Farmers Savings Bank. In looking at our non-interest expense compared to the prior year's third quarter, while some of the line items fluctuated, total non-interest expense was virtually unchanged.

Speaker #4: However , this decline was offset by increases in nearly every other noninterest income category . We continue to focus on controlling expenses for the quarter , noninterest expense was $28.3 million , which represents an increase of $845,000 , or 3.1% , over the linked quarter .

Speaker #4: However , the primary driver of the increase was $700,000 in non-recurring acquisition expenses related to the merger with farmers Savings . In looking at our noninterest expense compared to the prior year's third quarter , while some of the line items fluctuated totaled noninterest expense was virtually unchanged , the main category fluctuations for the third quarter comparisons were compensation expense decreased $700,000 for the third quarter of 2025 , compared to the prior year's third quarter , due to an increase in the deferral of salaries and wages related to the loan originations in 2025 .

Dennis Shaffer: The main category fluctuations for the third quarter comparisons were compensation expense decreased $700,000 for the third quarter of 2025 compared to the prior year's third quarter due to an increase in the deferral of salaries and wages related to the loan originations in 2025. Marketing expense decreased $300,000 for the third quarter of 2025 compared to the prior year's third quarter, mainly due to a shift to lower-cost digital marketing and lower promotional expenses related to advertising and product marketing. These decreases were offset by the aforementioned acquisition expenses that increased non-interest expense by $700,000. Our efficiency ratio for the quarter improved to 61.5% compared to 64.5% for the linked quarter and 70.5% for the prior year's third quarter. Our effective tax rate was 18.5% for the quarter and 16.2% year-to-date. Turning our focus to the balance sheet, for the quarter, total loans and leases declined by $55.1 million.

Speaker #4: Marketing expense decreased $300,000 for the third quarter of 2025 , compared to the prior year . Third quarter , mainly due to a shift to lower cost .

Speaker #4: Digital marketing and lower promotional expenses related to advertising and product marketing. These decreases were offset by the aforementioned acquisition expenses that increased noninterest expense by $700,000.

Speaker #4: Our efficiency ratio for the quarter improved to 61.5% , compared to 64.5% for the linked quarter , and 70.5% for the prior year .

Speaker #4: Third quarter . Our effective tax rate was 18.5% for the quarter , and 16.2% year to date . Turning our focus to the balance sheet for the quarter , total loans and leases declined by $55.1 million .

Speaker #4: Loan demand remains strong across our footprint. However, we experienced over $120 million in payoffs during the quarter. Most of these payoffs were the result of businesses being sold and real estate projects leasing up and moving on to the CMBS permanent market.

Dennis Shaffer: Loan demand remains strong across our footprint. However, we experienced over $120 million of payoffs during the quarter. Most of these payoffs were the result of businesses being sold and real estate projects leasing up and moving on to the CMBS permanent market. While we view most of these payoffs as good due to their successful nature, it does present some headwinds when a significant number of loan payoffs pay off in one quarter. While loans were flat or declined in nearly every category, our most significant declines were a $36 million decline in commercial and ag loans and a $48 million decline in non-owner occupied CRE. Both were primarily the result of the previously mentioned payoffs. We did have a $27 million increase in residential loans.

Speaker #4: While we view . Most of these payoffs as good due to their successful nature , it does present some headwinds when a significant number of loan payoffs pay off in one quarter , while loans were flat or declined in nearly every category .

Speaker #4: Our most significant declines were a $36 million decline in commercial and ag loans and a $48 million decline in Non-owner occupied CRE . Both were primarily the result of the previously mentioned payoffs .

Speaker #4: We did have a $27 million increase in residential loans . The loans we originate for our portfolio continue to be virtually all adjustable rate , and our leases all have maturities of five years or less year to date , we have grown our loan portfolio by $14 million .

Dennis Shaffer: The loans we originate for our portfolio continue to be virtually all adjustable rate, and our leases all have maturities of five years or less. Year-to-date, we have grown our loan portfolio by $14 million. As we have shared on previous calls, we've been pricing commercial and ag opportunities aggressively and have been more conservative in how we price commercial real estate opportunities, attempting to manage our concentration in the CRE portfolio. Post-capital raise, we have become more aggressive in pricing CRE opportunities, which has contributed to substantially increasing our pipelines going into the fourth quarter. That said, we are mindful of making sure we have the funding and capital to support our CRE growth. At September 30th, our CRE to risk-based capital ratio was 288%. We have established an internal CRE limit of approximately 325% of our risk-based capital going forward.

Speaker #4: As we have shared on previous calls , we've been pricing commercial and ag opportunities aggressively and had been more conservative in how we price commercial real estate opportunities .

Speaker #4: Attempting to manage our concentration in the CRE portfolio , post capital raise , we have become more aggressive in pricing CRE opportunities , which has contributed to substantially increasing our pipelines going into the fourth quarter .

Speaker #4: That said , we are mindful of making sure we have the funding and capital to support our CRE growth at September 30th , our CRE to risk based capital ratio was 288% .

Speaker #4: We have established an internal CRA CRA limit of approximately 325% of our risk based capital going forward . During the quarter , new and renewed commercial loans were originated at an average rate of 7.25% .

Dennis Shaffer: During the quarter, new and renewed commercial loans were originated at an average rate of 7.25%. Residential real estate loans were originated at 6.59%, and loans and leases originated by our leasing division were at an average rate of 9.36%. Loans secured by office buildings make up 4.8% of our total loan portfolio. As we have stated previously, these loans are not secured by high-rise metro office buildings. Rather, they are predominantly secured by single or two-story offices located outside of our central business districts. Along with year-to-date loan production, our pipelines are strong, and our undrawn construction lines were $173 million at September 30th. This should allow our organic loan growth to return to an annualized mid-single-digit range for the fourth quarter and increase into the mid to high single digits in 2026 as we leverage Farmers Savings Bank's excess deposits and our loan pipelines continue to build.

Speaker #4: Residential real estate loans were originated at 6.59% , and loans and leases originated by our leasing division were at an average rate of 9.36% .

Speaker #4: By office . Buildings make up 4.8% of our total loan portfolio . As we have stated previously , these loans are not secured by high rise office buildings .

Speaker #4: Rather , they are predominantly secured by single or two story offices located outside of our central business districts , along with year to date loan production .

Speaker #4: Our pipelines are strong and our undrawn construction lines were $173 million at September 30th . This should allow our organic loan growth to return to an annualized mid-single digit range for the fourth quarter , and increased into the mid to high single digits in 2026 .

Speaker #4: As we leveraged farmer's excess deposits and our loan pipelines continue to build on the funding side , total deposits grew by $33.4 million , which is meaningful given that we were able to reduce our dependence on brokered deposits by $23 million during the quarter .

Dennis Shaffer: On the funding side, total deposits grew by $33.4 million, which is meaningful given that we were able to reduce our dependence on broker deposits by $23 million during the quarter. This represents a $56.4 million increase in core deposit funding during the quarter as we continue to focus on our deposit-generating initiatives. This helped us lower our overall cost of funding by five basis points during the quarter to 2.27%. We continue to see migration from interest-bearing demand accounts into higher-rate deposit accounts during the quarter, which caused our cost of funds to increase 15 basis points. However, as we previously mentioned, our total funding cost declined by five basis points as we executed the funding approach that we messaged on last quarter's call. We continue to focus on growing core funding. In July, we launched our new digital deposit account platform.

Speaker #4: This represents a $56.4 million increase in core deposit funding during the quarter . As we continue to focus on our deposit generating initiatives , this helped us lower our overall cost of funding by five basis points during the 1:45 .27 percent .

Speaker #4: We continue to see migration from interest bearing demand accounts into higher rate deposit accounts during the quarter , which caused our cost of funds to increase 15 basis points .

Speaker #4: However , as we previously mentioned , our total funding cost declined by five basis points as we executed the funding approach that we messaged on last quarter's call .

Speaker #4: We continue to focus on growing core funding . In July , we launched our new digital deposit account , opening platform . We started slowly limiting online account opening to CDs and markets near our current branch locations , where we felt we had some name recognition .

Dennis Shaffer: We started slowly, limiting online account opening to CDs and markets near our current branch locations where we felt we had some name recognition. We plan to begin offering checking and money market accounts during the fourth quarter. We are also preparing to roll out our deposit product redesign initiative during the fourth quarter. The goal of this initiative will be to streamline deposit accounts that we acquired through various acquisitions and align our product set with our new digital channels. Our deposit base continues to be fairly granular, with our average deposit account, excluding CDs, approximately $27,500. Non-interest-bearing deposit and business operating accounts continue to be a focus. In addition to those already mentioned, we have several initiatives underway to gather these types of deposits, including monthly marketing blitzes and marketing to low and no deposit balance customers, which are yielding some success.

Speaker #4: We plan to begin offering checking and money market accounts during the fourth quarter . We are also preparing to roll out our deposit product redesign initiative during the fourth quarter .

Speaker #4: The goal of this initiative will be to streamline deposit accounts that we acquired through various acquisitions and align our product set with our new digital channels .

Speaker #4: Our deposit base continues to be fairly granular , with our average deposit account excluding CDs . Approximately $27,500 noninterest bearing deposit and business operating accounts continue to be a focus .

Speaker #4: In addition to those already mentioned , we have several initiatives underway to gather these type of deposits , including monthly marketing blitzes and marketing to load a note of deposit balance loan customers , which are yielding some success at quarter end , our loan to deposit ratio was 95.8% , which is down from the linked quarter .

Dennis Shaffer: At quarter end, our loan-to-deposit ratio was 95.8%, which is down from the linked quarter. We anticipate further reducing this ratio into our targeted range of 90% to 95% once the Farmers Savings Bank acquisition closes. Other than the $509.5 million of public funds with various municipalities across our footprint, we had no deposit concentrations at September 30th. We believe our low-cost deposit franchise is one of Civista's most valuable characteristics, contributing significantly to our solid net interest margin and overall profitability, and look forward to adding Farmers' low-cost deposit base to our franchise. The declining interest rate environment reduced some of the pressure on bond portfolios. At September 30th, our securities were all classified as available for sale and had $44.5 million of unrealized losses associated with them. This represented a reduction in unrealized losses of $8.9 million since December 31st, 2024.

Speaker #4: We anticipate further reducing this ratio into our targeted range of 90 to 95% . Once the farmers acquisition closes . Other than the $509.5 million of public funds with various municipalities across our footprint , we had no deposit concentrations at September 30th , we believe our low cost deposit franchise is one of Vista's most valuable characteristics , contributing significantly to our solid net interest margin and overall profitability .

Speaker #4: And look forward to adding farmers low cost deposit base to our franchise . The declining interest rate environment reduced some of the pressure on bond portfolios at September 30th , our securities were all classified as available for sale and had $44.5 million of unrealized losses associated with them .

Speaker #4: This represented a reduction in unrealized losses of $8.9 million since December 31st , 2024 . At September 30th , our security portfolio was $657 million , which represented 16% of our balance sheet .

Dennis Shaffer: At September 30th, our securities portfolio was $657 million, which represented 16% of our balance sheet. When combined with cash balances, it represents 22.3% of our deposits. We ended the quarter with our tier-one leverage ratio at 11%, which is deemed well capitalized for regulatory purposes. Our tangible common equity ratio increased from 6.7% at June 30th to 9.21% at September 30th on our strong earnings and successful capital raise. However, post-closing on our Farmers Savings Bank acquisition, we anticipate our tangible common equity ratio declining to 8.6%, which we feel gives us capital to support organic growth, invest in technology, people, and infrastructure. Civista's earnings continue to create capital, and our overall goal remains to maintain adequate capital to support organic growth and prudent investment into our company.

Speaker #4: And when combined with cash balances , it represents 22.3% of our deposits . We ended the quarter with our tier one leverage ratio at 11% , which is deemed well capitalized for regulatory purposes .

Speaker #4: Our tangible common equity ratio increased from 6.7% at June 30th to 9.21% at September 30th . On our strong earnings and successful capital raise , however , Post-closing on our farmers acquisition , we anticipate our tangible common equity ratio declining to 8.6% , which we feel gives us capital to support organic growth .

Speaker #4: Invest in technology , people and infrastructure . So this is earnings continue to create capital . And our overall goal remains to maintain adequate capital to support organic growth and prudent investment into our company .

Speaker #4: We will continue to focus on earnings and will balance the payment of dividends and any repurchases with building capital to support our growth .

Dennis Shaffer: We will continue to focus on earnings and will balance the payment of dividends and any repurchases with building capital to support our growth. Although we did not repurchase any shares during the quarter, we continue to believe our stock is of value. Despite comments made during some of the large bank earnings calls, the economy across our footprint continues to show no real signs of concern. For the most part, our borrowers plan for and continue to successfully navigate tariff and other economic issues specific to their industries. Our credit quality remains strong, and our credit metrics remain stable. Civista Bancshares Inc., like most community banks, has no exposure to shared national credits, nor do we have significant exposure to floor plans, indirect auto lending, or loans to non-depository financial institutions, which seems to be the types of credit that have caused much of the recent concern.

Speaker #4: Although we did not repurchase any shares during the quarter , we continue to believe our stock is of value despite comments made during some of the large bank earnings calls .

Speaker #4: The economy across our footprint continues to show no real signs of concern . For the most part , our borrowers plan for and continue to successfully navigate tariff and other economic issues specific to their industries .

Speaker #4: Our credit quality remains strong , and our credit metrics remain stable . So Vista , like most community banks , has no exposure to shared national credits , nor do we have significant exposure to floor plans .

Speaker #4: Indirect auto lending or loans to Non-depository financial institutions , which seems to be the types of credit that have caused much of the recent concern for the quarter .

Speaker #4: Criticized credits were virtually unchanged at 93.3 million . The continued strong performance of our credits , coupled with significant loan payoffs , resulted in a minimal $200,000 provision for the quarter .

Dennis Shaffer: For the quarter, criticized credits were virtually unchanged at $93.3 million. The continued strong performance of our credits, coupled with significant loan payoffs, resulted in a minimal $200,000 provision for the quarter. Our ratio of our allowance for credit losses to loans is 1.30% at September 30, which is consistent with the 1.29% at December 31, 2024. In addition, our allowance for credit losses to non-performing loans is 177% at September 30, an improvement when compared to 122% at December 31, 2024. In summary, it's been a very busy and productive quarter. We reported strong earnings that were 53% higher than the previous year's quarter. We grew pre-provision net revenue by 45% over the previous year's quarter. After adjusting for one-time items, we expanded our margin by 11 basis points over our linked quarter. We continue to gather new customers, increasing core deposits by $87 million year-to-date.

Speaker #4: Our ratio of our allowance for credit losses to loans is 1.30% at September 30th , which is consistent with the 1.29% at December 31st , 2024 .

Speaker #4: In addition , our allowance for credit losses to non-performing loans is 177% at September 30th , an improvement when compared to 122% at December 31st , 2020 .

Speaker #4: For . In summary , it has been a very busy and productive quarter . We reported strong earnings that were 53% higher than the previous year's quarter .

Speaker #4: We grew Pre-provision net revenue by 45% over the previous year's quarter . After adjusting for one time items , we expanded our margin by 11 basis points over our linked quarter .

Speaker #4: We continue to gather new customers , increasing core deposits by $87 million year to date . We had a very successful capital raise and our teams are working toward the successful integration of our new farmers team members and customers .

Dennis Shaffer: We had a very successful capital raise, and our teams are working toward the successful integration of our new Farmers Savings Bank team members and customers. That is a pretty productive quarter and one that I believe sets us up for a strong finish to the year and one that should get us off to a strong start in 2026. I cannot be more bullish for Civista Bancshares Inc. and our shareholders. Thank you for your attention this afternoon and your investment, and now we'll be happy to address any questions you may have.

Speaker #4: That's a pretty productive quarter , and one that I believe sets us up for a strong finish to the year . And one that should get us off to a strong start in 2026 .

Speaker #4: I cannot be more bullish for Vista and our shareholders , so thank you for your attention . Your attention this afternoon and your investment .

Speaker #4: And now we'll be happy to address any questions you may have .

Speaker #3: Thank you . Ladies and gentlemen , we will now begin the question and answer session . To ask the question , you may press star then one on your touchtone phone .

Operator: Thank you. Ladies and gentlemen, we will now begin the question and answer session. To ask a question, you may press star then one on your touch-tone phone. If you are using a speaker phone, please pick up your handset before pressing the keys. To withdraw your question, please press the pound key. We'll pause for a moment to compile the Q&A roster. Our first question comes from the line of Ryan Payne from D.A. Davidson. Your line is open.

Speaker #3: If you are using a speaker , please pick up your handset before pressing the keys . To withdraw your question , please press the pound key .

Speaker #3: We'll pause for a moment to compile the Q&A roster . Our first question comes from the line of Ryan Paine from the Davidson .

Speaker #3: Your line is open .

Speaker #5: Hey . Good afternoon guys .

[Analyst]: Hey, good afternoon, guys.

Speaker #6: Ryan .

Dennis Shaffer: All right, Ryan.

Speaker #5: Maybe starting with the margin . How do you see that shaking out on a rate sensitivity basis ? If we do see a few more cuts before the end of the year and any expected impact from further cuts , if we kind of think into 2026 .

[Analyst]: Maybe starting with the margin, how do you see that shaking out on a rate sensitivity basis if we do see a few more cuts before the end of the year, and any expected impact from further cuts if we kind of think into 2026?

Speaker #7: Yeah . Hey , Ryan , it's Ian . So the way that we're really looking at it right now is just cut in October .

Charles A. Parcher: Yeah. Hey, Ryan. Good to be in. The way that we're really looking at it right now is just a cut in October, another cut in December, and then we're still working through kind of that 2026 guidance, at least from a baseline of if there's a cut in October and December. Also, with the addition of Farmers coming in, we are anticipating the margin to expand about another five basis points in the fourth quarter from where the third quarter was.

Speaker #7: Another cut in December, and then we're still working through kind of that 2026 guidance, at least from a baseline of if there's a cut in October and December.

Speaker #7: Also , with the addition of farmers coming in , we are anticipating the margin to expand about another five basis points in the fourth quarter , from where the third quarter was .

Speaker #5: Got it . Helpful . And moving to capital . So on capital priorities Post-close of farmers . Sounds like that would be reserved for organic growth .

[Analyst]: Got it. Helpful. Moving to capital, on capital priorities post-close of Farmers, it sounds like that'll be reserved for organic growth, and you will remain opportunistic on repurchases. Maybe on M&A, how conversations are going, and has the deal kind of brought in more inbounds or interest?

Speaker #5: And you will remain opportunistic on repurchases. But maybe on M&A, how are conversations going? And has the deal kind of brought in more inbounds or interest?

Speaker #4: No , I wouldn't say it has . I mean , I think , you know , really you know , we're we're really focused right now on growing organically .

Dennis Shaffer: No, I wouldn't say it has. I mean, I think we're really focused right now on growing organically, first off, and we want to increase our tangible book value. We want to continue to see our earnings per share grow. M&A can be tough at times. For instance, last year, we took a look at six deals, and we passed on all six of those deals because they just didn't meet our criteria. We feel we're pretty disciplined when we evaluate an M&A transaction, and we're going to continue to stay disciplined as opportunities present themselves. The Farmers Savings Bank deal checked a lot of boxes for us and gave us some much-needed liquidity. That's why we went ahead and did that deal. There have been other deals announced here even this week in Ohio that certainly probably do spur some interest.

Speaker #4: First off . And we want to increase our tangible book value . We want to continue to see our earnings per share grow .

Speaker #4: You know , M&A can be tough at times . You know , for instance , last year we looked at six deals and we passed on all six of those deals because they just didn't meet our criteria .

Speaker #4: So you know, we feel we're pretty disciplined when we evaluate an M&A transaction, and we're going to continue to stay disciplined.

Speaker #4: You know , as opportunities present themselves . You know , the farmer's deal checked a lot of boxes for us . And you know gave us some much needed liquidity .

Speaker #4: So that's why we went ahead and and did that deal . You know there's been other deals announced here even this week in Ohio that certainly probably does spur some interest .

Speaker #4: But really, the main reason we raised the capital was to help support our organic growth and allow us to make the necessary investments.

Dennis Shaffer: Really, the main reason we raised the capital was to help support our organic growth and to allow us to make the necessary investments, like I mentioned, in technology and people and infrastructure. Our real focus is really on deepening our relationships and growing fee income, expanding our digital services and bringing new products and verticals, because we want to gain just a greater share of our customers' wallet, and we want to focus on attracting new customers to the bank. Our data tells us that customers with strong relationships bring in about four times the revenue compared to other customers. In order to deepen those relationships and bring in those customers, we have to make capital investments in things like artificial intelligence and profitability tools.

Speaker #4: Like I mentioned in technology and people and infrastructure , you know , our real focus is really on deepening our relationships and growing fee income .

Speaker #4: You know, we are expanding our digital services and bringing in new products and verticals because we want to gain a greater share of our customers' wallets, and we want to focus on attracting new customers to the bank.

Speaker #4: So there , our data tells us that , you know , that customers with strong relationships bring in about four times the revenue compared to other customers .

Speaker #4: So, in order to deepen those relationships and bring in those customers, we have to make capital investments in things like artificial intelligence and profitability tools.

Speaker #4: And I think these investments will enable us to , you know , precisely target our best opportunities and prove the effectiveness of our cross-selling efforts , improve retention , and and just optimize profitability by putting these pricing tools in the hands of our sales team .

Dennis Shaffer: I think these investments will enable us to precisely target our best opportunities, improve the effectiveness of our cross-selling efforts, improve retention, and just optimize profitability by putting these pricing tools in the hands of our sales teams. That's just one example of how we plan to use the capital. I think another example that we've talked about on previous calls is how we've been using it to make investments in the robotic process automation. We'll continue to focus on just leveraging that type of automation to help us grow the bank, while just improving our operating leverage. We've had some success with that, and we're going to continue to make improvements, because I think that just makes us a more efficient organization. Again, we will look at M&A if it meets our criteria, but our main focus is really to organically grow the bank and just increase our earnings.

Speaker #4: So , you know , that's just one example of how we plan to use the capital . I think another example that that we've talked about on previous calls is how we've been using it to with make investments into robotic process automation .

Speaker #4: So , so , you know , we're continuing to focus on just leveraging that type of automation to help us grow the bank while just improving our our operating leverage .

Speaker #4: We've had some success with that, and we're going to continue to make improvements because I think that just makes us a more efficient organization.

Speaker #4: So again , we will look at M&A if it meets our criteria . But our main focus is really to organically grow the bank and just increase our earnings .

Speaker #4: There's just a lot of disruption right now in our markets, and we feel there's really a lot of organic opportunity for us as we continue to make the necessary capital investments to take advantage of those opportunities.

Dennis Shaffer: There's just a lot of disruption right now in our markets, and we feel there's really a lot of organic opportunity for us as we continue to make the necessary capital investments to take advantage of those opportunities.

Speaker #5: Great . Got it . Last one for me . Just a housekeeping item . The effective tax rate coming in higher than historical .

[Analyst]: Great. Got it. The last one for me, just a housekeeping item. The effective tax rate coming in higher than historical. Anything impacting that this quarter? Would you expect to stay in kind of this range going forward?

Speaker #5: Any anything impacting that this quarter . And would you expect to stay in kind of this range going forward .

Speaker #7: Yeah . It's we ended up increasing our expected earnings for the remainder of the year . So to bounce that out , it did increase the third quarter on a year to date basis .

Charles A. Parcher: Yeah. We ended up increasing our expected earnings for the remainder of the year. To balance that out, it did increase the third quarter. On a year-to-date basis, we're at that 16 to 16.5% range. We anticipate that for the fourth quarter.

Speaker #7: We're at that 16% to 16.5% range. We anticipate that for the fourth quarter.

Speaker #5: Got it . All right . Thanks for the detail guys . I'll step back .

[Analyst]: Got it. All right, thanks for the detail, guys. I'll step back.

Speaker #8: Thanks , Ryan . Thank you .

Charles A. Parcher: Yeah, thanks, Ryan. Thank you.

Speaker #3: Our next question comes from the line of Brendan Nelson from hotel Group . Your line is open .

Operator: Our next question comes from the line of Brendan Nosal from Hovde Group. Your line is open.

Speaker #9: Hey , good morning folks . Hope you're doing well . Good , good afternoon . Maybe just starting off here on on the outlook for loan growth here .

[Analyst]: Hey, good morning, folks. Hope you're doing well. In fact, sorry, good afternoon. Excuse me. Maybe just starting off here on the outlook for loan growth. I hear you loud and clear on the mid-single-digit pace for the fourth quarter and then mid to high across 2026. Can you just kind of talk about your confidence in achieving that, given that year-to-date loan balances are pretty flat? That's a pretty meaningful ramp. Just talk about why you have confidence in your ability to achieve that.

Speaker #9: You hear you loud and clear on you know the mid single digit pace for the fourth quarter and then mid to high across 2026 .

Speaker #9: Can you just kind of talk about your confidence in achieving that . Given that you know , year to date loan balances are pretty flat .

Speaker #9: So, that's a pretty meaningful ramp. Just talk about why you have confidence in your ability to achieve that.

Speaker #6: Sure , sure . Brennan , this is Chuck . You know , if you look historically , we've always been a great loan generating operation .

Charles A. Parcher: Sure, Brendan. This is Chuck. If you look historically, we've always been a great loan-generating operation. With where our real estate concentrations were earlier in the year, we really weren't, I don't want to say weren't competitive, but we weren't very aggressive in trying to bring new business into the bank. It kind of caught up with us a little bit here in the third quarter where we had a bunch of expected payoffs. As Dennis mentioned, most of them were what I would call good payoffs, a couple of companies selling and a few projects going out to the permanent market. Our pipeline right now is sitting high, higher than it was last year, significantly higher than it was earlier in the year. We feel good with the momentum going into the fourth quarter.

Speaker #6: And , you know , with our where our real estate concentrations were earlier in the year , we really weren't . I don't want to say weren't competitive , but we weren't very aggressive in trying to bring new , new business into the bank .

Speaker #6: And it kind of caught up with us a little bit here in the third quarter , where we had a bunch of expected payoffs , you know , as Dennis mentioned , most of them , what I would call good payoffs , a couple companies selling and and a few projects going out to the permit market .

Speaker #6: But , you know , our , our , our pipeline right now is sitting , you know , higher than it was last year , significantly higher than it was earlier in the year .

Speaker #6: So we feel good with the momentum going into the fourth quarter . We know we've got a few more payoffs that we're kind of staring at in the fourth quarter , but not to the same to the same level that we had in the third .

Charles A. Parcher: We know we got a few more payoffs that we're kind of staring at in the fourth quarter, but not to the same level that we had in the third. We feel good about looking out to that mid-single-digit growth going forward.

Speaker #6: So we feel good about , you know , looking out to that mid-single digit growth going forward .

Speaker #4: And Brendan , I would mention that I think it's important to note on the payoffs that we we had several of our business clients that we were really successful in maintaining some of those deposits , both at the bank and at the wells management level .

Dennis Shaffer: Brendan, I would mention that I think it's important to note on the payoffs that we had several of our business guys that we were really successful in maintaining some of those deposits, both at the bank and at the wealth management level, in areas of the bank. Even though we lost some of the interest income from the payoffs of the loan, we maintained that relationship, and we're making money in other areas of the bank. I think that's important to note. I sat in our wealth and trust wealth meeting yesterday, and a couple of those loan payoffs, we've got significant wealth related. We're now managing that money that the business owner received. We are making some money from that. I just think it's important to note that we didn't include that in our earlier comments.

Speaker #4: You know , in areas of the bank . So even though we lost some of the interest income from the payoffs on loan , we maintained that relationship and we're making money in other areas of the bank .

Speaker #4: So, I think that's important to note that that kind of, you know, I sat in our Wealth and Trust and Wealth meeting yesterday, and a couple of those loan payoffs.

Speaker #4: We have significant wealth relationships. We're now managing the money that the business owner received, so we are making some money from that.

Speaker #4: So, I just think it's important to note that we didn't include that in our earlier comments.

Speaker #9: Yep . That's helpful color I appreciate it . Maybe moving over to the fee income gain on sale of loans was up significantly for the quarter .

[Analyst]: Yep, that's helpful, Carl. I appreciate it. Maybe moving over to the fee income, gain on sale of loans was up significantly for the quarter. Can you just kind of decompose that into, you know, one to four family gains versus lease gain on sale, and how we should think about that in line item going forward?

Speaker #9: Can you just kind of decompose that into , you know , 1 to 4 family gains versus lease gain on sale and how we should think about that line item going forward ?

Speaker #7: Yeah , absolutely . So in the in the third quarter , roughly 1.1 million gain on sale was about $850,000 . It was mortgage , $300,000 of it was for our leasing side of things of the there was an additional $300,000 on that for gain on disposal of equipment .

Charles A. Parcher: Yeah, absolutely. In the third quarter, roughly $1.1 million gain on sale is about $850,000 in this mortgage, $300,000 of it was CLF or our leasing side of things. There was an additional $300,000 on that for gain on disposal of equipment on the leasing side. That's kind of that lumpy stuff that we end up seeing as opposed to the more traditional gain on sale.

Speaker #7: On the leasing side . So that's kind of that lumpy stuff that we end up seeing , as opposed to the more traditional gain on sale .

Speaker #6: And Brendan , I will say , I think probably like almost every other community bank in the country , we really do feel like we'll see a major uptick in gain on sale if we see the 30 year mortgage refinance rates go under 6% .

Dennis Shaffer: Brendan, I will say, I think probably like almost every other community bank in the country, we really do feel like we'll see a major uptick in gain on sale if we see the 30-year mortgage refinance rates go under 6%. We've got a, I think we've got a backlog of what we would consider a lot of refinance opportunity if we do see those rates dip down for a while.

Speaker #6: We've got a I think we've got a backlog of what we would consider a lot of refinance opportunity . If we do see those rates dip down for a while .

Speaker #9: Okay , okay , good . And then while I have you just maybe on on fee income overall , I know that it tends to be volatile quarter to quarter .

[Analyst]: Okay. Good. While I have you, just maybe on fee income overall, I know that it tends to be volatile quarter to quarter, and this felt like a particularly strong quarter versus earlier in the year. Any thoughts on the overall level of fee income to wrap up the year?

Speaker #9: And this felt like a particularly strong quarter versus earlier in the year. Any thoughts on the overall level of income to wrap up the year?

Speaker #7: Yeah , so if we take that 9.6 million that we had in the third quarter , if we back out to bully the security gains getting us down to about 9 million , we anticipate being about 9.2 in the fourth quarter .

Charles A. Parcher: If we take that $9.6 million that we had in the third quarter, if we back out the BOLI and the security gains, getting us down to about $9 million, we anticipate being about $9.2 million in the fourth quarter, and that would include about $50,000 for Farmers Savings Bank.

Speaker #7: And that would include about $50,000 from farmers .

Speaker #9: Fantastic. Thanks for taking the questions.

[Analyst]: Fantastic. Thanks for taking the questions.

Speaker #3: Our next question comes from the line of Terry McEvoy from Stephens. Your line is open.

Operator: My next question comes from the line of Terry McEvoy from Stephens. Line is open.

Speaker #10: Hi. Good afternoon, everybody. Maybe a question on the decline in loan yields in the third quarter relative to the second quarter.

[Analyst]: Hi. Good afternoon, everybody. Maybe a question on the decline in loan yields in the third quarter relative to the second quarter. Could you just talk about, is that just a makeshift? You were building the residential portfolio, some pricing competition, and then looking out into the fourth quarter, do you see an opportunity to expand loan yields kind of on a core basis before the merger, just on some fixed asset repricing?

Speaker #10: Could you just talk about is that just a mix shift you were building the residential portfolio some pricing competition and then looking out into the fourth quarter , do you see an opportunity to expand loan yields kind of on a core basis before the merger ?

Speaker #10: Just on some fixed asset . Repricing ?

Speaker #7: Yeah . So just a reminder , Terry , the Ian in the first quarter or sorry in the second quarter we had that nonrecurring item that was in the interest income , which was about $1 million .

Charles A. Parcher: Yeah. Just a reminder, Terry, this is in the first quarter, or sorry, in the second quarter, we had that non-recurring item that was in the interest income, which is about $1 billion. If that gets excluded, then we end up being much more normalized on the yields on loans.

Speaker #7: And so if that gets excluded, then we end up being much more normalized on the yields on loans.

Speaker #6: And Terry , to your point , it just got the 930 report . You know , we're watching very closely the amount of loans that will reprice over the next 12 months .

Dennis Shaffer: Terry, to your point, I just got the 9/30 report. We're watching very closely the amount of loans that are repriced over the next 12 months, and we've got about $225 million that are repriced here over the next 12 months in those adjustable rates, most of them five and three-year mortgages. We do feel we'll see a pickup in yield on that $225 million as we fight a little bit of the probably floating rate stuff going down during the same time period.

Speaker #6: And we've got about $225 million that will reprice here over the next 12 months . You know , in those adjustable rate , five , most of them five and three year mortgages .

Speaker #6: So we do feel we'll see a pickup , you know , in yield on on that 225 million as we fight . You know a little bit of the probably floating rate stuff going down during the same time period .

Speaker #10: Great . And thanks for the reminder and the update . There much appreciated . And then I believe you said the systems conversion early February .

[Analyst]: Great. Thanks for the reminder and the update there. Much appreciated. I believe you said the systems conversion early February. Could you talk about the timing of the cost saves and, in the back half of next year, do you expect that to be fully in the run rate?

Speaker #10: Could you talk about the timing of the cost savings ? And you know , in the back half of next year , do you expect that to be fully in the run rate ?

Speaker #4: Yes .

Charles A. Parcher: Yes. We anticipate, as you mentioned, the system conversion occurring. That reduces a lot of the contract expenses for processing, as well as some of the staffing reductions will take place following that deal.

Speaker #7: So we anticipate, you know, as you mentioned, the system conversion occurring that reduces a lot of the contract expenses for processing.

Speaker #7: As well as some of the some of the staffing reductions will take place . Following that to . .

Speaker #10: Great . Thanks for taking my questions .

[Analyst]: Great. Thanks for taking my questions.

Speaker #8: Thanks for .

Charles A. Parcher: Take care.

Speaker #3: Our next question comes from the line of Tim Sweitzer from KB. Your line is open.

Operator: Our next question comes from the line of Ian Whinnem from KBW. Your line is open.

Speaker #8: Hey . Good afternoon . Thanks for taking my questions . Hi , Jim . Most of mine have been answered already , but could you are you able to tie down at all ?

[Analyst]: Hey, good afternoon. Thanks for taking my question.

Dennis Shaffer: Hi, Tim.

[Analyst]: Most of it might have been answered already, but could you, are you able to tie down at all when in November you guys are expecting to close Farmers? Is it the beginning of the quarter or towards the end? Just to kind of help us with the modeling.

Speaker #8: When ? In November . You guys are expecting to close farmers ? Is it beginning of the quarter ? Towards the end , just to kind of help us with the modeling ?

Speaker #4: Yeah , we hope , you know , they have their shareholders meeting on November the 4th and we hope to close it shortly thereafter .

Dennis Shaffer: Yeah. We hope, you know, they have their shareholders meeting on November 4, and we hope to close shortly thereafter, definitely probably before the middle of the month. If you're modeling, you're going to have at least 45 days for the quarter.

Speaker #4: Definitely be probably before the middle of the month . So you know , you know , if you're modeling , you going to have at least 45 days for the quarter .

Speaker #4: Okay . Great . We'll have both banks together . That would be that would probably be fairly conservative . We hope to be a few days ahead of that .

[Analyst]: Okay. Great.

Dennis Shaffer: We'll have those banks together. That would probably be fairly conservative. We hope to be a few days ahead of that, but, you know, to be safe on your modeling.

Speaker #4: But , you know , to be safe on your modeling .

Speaker #8: Gotcha . Okay . And then the Nim guidance has been very helpful . Are you able to quantify it all ? What maybe the purchase accounting impact is on the Nim and what you guys expect on like a full quarter basis ?

[Analyst]: Gotcha. Okay. The NIM guidance has been very helpful. Are you able to quantify at all what maybe the purchase accounting impact is on the NIM and what you guys expect on like a full quarter basis?

Speaker #7: Yeah . Let me see if I have that handy . I do not have that in front of me . Actually . We'll shoot .

Charles A. Parcher: Let me see if I have that handy. I do not have that in front of me, actually.

Speaker #4: We'll shoot that out to all of the analysts on the call today.

Dennis Shaffer: We'll shoot that out to all of the analysts on the call today.

Speaker #8: Okay . And then I was wondering what you guys are seeing in terms of like loan competition on pricing in your markets , any kind of changes there recently ?

[Analyst]: Okay. I was wondering what you guys are seeing in terms of loan competition on pricing in your markets. Any kind of changes there recently?

Speaker #6: I think , excuse me , Tim , I think everybody's gotten a little bit more aggressive . You know , we're seeing we're seeing that the rates kind of fall down below that six and a half level , probably somewhere between the six and six and a half level on the on the better deals .

Charles A. Parcher: I think everybody's gotten a little bit more aggressive. We're seeing that the rates kind of fall down below that 6.5% level, probably somewhere between the 6% and the 6.5% level on the better deals. It's pretty competitive across. I wouldn't tell you there's any one market here in Ohio or Indiana that's any less or more competitive. They're all very competitive right now, both on the deposit and on the loan side.

Speaker #6: So it's pretty competitive across I wouldn't tell you there's any one market here in Ohio or Indiana that's any less or more competitive .

Speaker #6: They're all very competitive right now , both on the both on the deposit and on the loan side .

Speaker #4: And I would say , Tim , you know , the disruption in the marketplace is obviously , I think , going to help us .

Dennis Shaffer: I would say, Tim, the disruption in the marketplace is obviously, I think, going to help us. You've got some of the bigger players like Huntington and Fifth Third who have announced some deals out of state, and their focus is probably, their attention is elsewhere. The premier West Banco thing is less than a year old, and we just saw the Middlefield announcement yesterday. All that disruption really helps us in that change. We think that'll benefit us both from a loan and deposit standpoint.

Speaker #4: You know , you've got some of the bigger players like Huntington and Fifth Third who have announced some deals . You know , out of state and you know , their focus is probably , you know , their attention is elsewhere .

Speaker #4: And then , you know , we still , you know , the Premier West Bank thing is less than a year . And and we just saw the Middlefield announcement yesterday .

Speaker #4: All that disruption really helps us . So in that change . So we think that , you know , we think that'll benefit us both from a loan and deposit standpoint .

Speaker #8: Okay . Yeah that's helpful . Outside of the disruption that you mentioned . Do you have a sense for the loan pricing specifically how much of that the competition is being driven by ?

[Analyst]: Okay, that's helpful. Outside of the disruption that you mentioned, do you have a sense for the loan pricing specifically? How much of that competition is being driven by either slowing demand from borrowers versus simply the lower rates from the Fed?

Speaker #8: You know , either slowing demand from borrowers versus simply the the lower rates from the fed .

Speaker #6: Yeah , I think that the man's been pretty consistent . I mean , as I said earlier , we were we weren't quite as aggressive in the first half of the year just based on where we were sitting at on the balance sheet .

Charles A. Parcher: Yeah, I think the demand's been pretty consistent. As I said earlier, we weren't quite as aggressive in the first half of the year just based on when we were sitting out on the balance sheet. I would tell you, demand has been pretty consistent in Ohio all year. We don't, knock on wood, the economy here, especially in the three Cs in Ohio, has been really good, and we don't see that changing anytime soon.

Speaker #6: But I would tell you , the bands demand has been pretty consistent in Ohio all year , and we don't knock on wood .

Speaker #6: The economy here , especially in the three Seas in Ohio , has been been really good and we don't see that changing anytime soon .

Speaker #4: Yeah , we feel the economy , you know , and our customers have really adapted to some of the the conditions . As I stated on the during earlier comments , I think , you know , it's probably , you know .

Dennis Shaffer: Yeah. We feel the economy and our customers have really adapted to some of the conditions, as I stated in earlier comments. I think it's probably more driven by rate than anything else. I mean, the lower rates by the Fed, that's going to hopefully spur a little bit more activity as well.

Speaker #4: More driven by rate than anything else . I mean , the lower rates by the fed and stuff that's going to , you know , hopefully spur a little .

Speaker #4: Bit more activity as well .

Speaker #6: And I think there's I do think , you know , especially some of our competition , I think there's a lot more confidence around commercial real estate than there was , you know , 12 to 18 months ago .

Charles A. Parcher: I do think, especially some of our competition, there's a lot more confidence around commercial real estate than there was 12 to 18 months ago. I think everybody was a little bit leery of it, which helped us keep rates up on certain things. Now I think that has started to subside, obviously, and rates are starting to shoot back down.

Speaker #6: You know , I think everybody was a little bit leery of it , which helped us keep rates up on certain things . But now I think that that's started to subside .

Speaker #6: Obviously , and rates are , you know , starting to shoot back down .

Speaker #8: Gotcha . Very helpful . Thank you guys .

[Analyst]: Gotcha. Very helpful. Thank you, guys.

Speaker #7: Hey , Tim , this is Ian on the the accretion question that you had about $150,000 in the fourth quarter .

Charles A. Parcher: Hey, Tim. This is Ian. On the accretion question I had, it'd be about $150,000 in the fourth quarter.

Speaker #8: Okay . So then when we get into the full quarter and Q1 , that would be 300 .

[Analyst]: Okay. When we get into the full quarter in Q1, that would be 300?

Speaker #7: Yeah . In that range , maybe 280 .

Charles A. Parcher: Yeah, in that range, maybe $280.

Speaker #8: Perfect . All right . Thank you so much .

[Analyst]: Perfect. All right. Thank you so much.

Speaker #3: There are no further questions at this time . I would now like to turn the conference back to Mr. Shaffer . Please go ahead .

Operator: There are no further questions at this time. I would now like to turn the conference back to Mr. Shaffer. Please go ahead.

Speaker #4: Thank you . In closing , I just want to thank everyone for joining us for today's call and for your investment in Vista .

Dennis Shaffer: Thank you. In closing, I just want to thank everyone for joining us for today's call and for your investment in Civista Bancshares Inc. I remain really confident that this quarter's list of accomplishments and strong financial results and just our disciplined approach to managing the company's company positioned us really well for long-term future success. I look forward to talking to you all again in a few months to share our year-end results. Thank you for your time today.

Speaker #4: And remain really confident that this quarter's list of accomplishments and strong financial results and just our disciplined approach to managing the company's position , company positions us really well for long term future success .

Speaker #4: I look forward to talking to you all again in a few months to share our year end results . So thank you for your time today .

Operator: This concludes today's conference call. Thank you for participating. You may now disconnect.