Civista Bancshares Q4 2025 Civista Bancshares Inc Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 Civista Bancshares Inc Earnings Call
Operator: Good afternoon, ladies and gentlemen. Before we begin, I would like to remind you that this conference call may contain forward-looking statements with respect to the future performance and financial condition of Civista Bancshares, Inc., that involves risks and uncertainties. Various factors could cause actual results to be materially different from any future results expressed or implied by such forward-looking statements. These factors are discussed in the company's SEC filings, which are available on the company's website. The company disclaims any obligation to update any forward-looking statements made during the call. Additionally, management may refer to non-GAAP measures, which are intended to supplement but not substitute the most directly comparable GAAP measures. 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 #1: Gentlemen, before we begin, I would like to remind you that this conference call may contain forward-looking statements with respect to the future performance and financial condition of Civista Bancshares. These involve risks and uncertainties.
Speaker #1: 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.
Speaker #1: The company disclaims any obligation to update any forward-looking statements made during the call. Additionally, management may refer to non-GAAP measures, which are intended to supplement, but not substitute, the most directly comparable GAAP measures.
Speaker #1: 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 #1: This call will be recorded and made available on Civista Bancshares' website, which is www.civb.com. At the conclusion of Mr. Shaffer's remarks, he and the Civista management team will take any questions you may have.
Operator: This call will be recorded and made available on Civista Bancshares 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 #1: Now, I will turn the call over to Mr.
Speaker #1: Shaffer. Good
Dennis Shaffer: Good afternoon. This is Dennis Shaffer, President and CEO of Civista Bancshares, and I would like to welcome you to our fourth quarter and year-end 2025 earnings call. I'm joined today by Chuck Parcher, EVP of the company and President of the bank, Ian Whinnem, SVP 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 fourth quarter of 2025 of $12.3 million or $0.61 per diluted share, which is consistent with our linked quarter and represents a $2.4 million or 24% increase over our fourth quarter in 2024.
Dennis Shaffer: Good afternoon. This is Dennis Shaffer, President and CEO of Civista Bancshares, and I would like to welcome you to our fourth quarter and year-end 2025 earnings call. I'm joined today by Chuck Parcher, EVP of the company and President of the bank, Ian Whinnem, SVP 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 fourth quarter of 2025 of $12.3 million or $0.61 per diluted share, which is consistent with our linked quarter and represents a $2.4 million or 24% increase over our fourth quarter in 2024.
Speaker #2: Good afternoon. This is Dennis Shaffer, President and CEO of Civista Bancshares, and I would like to welcome you to our fourth quarter and year-end 2025 earnings call.
Speaker #2: I'm joined today by Chuck Parcher, EVP of the company and President of the bank; Ian Winnum, SVP of the company and Chief Financial Officer of the bank; and other members of our executive team.
Speaker #2: This morning, we reported net income for the fourth quarter of 2025 of $12.3 million, or $0.61 per diluted share, which is consistent with our linked quarter and represents a $2.4 million, or 24%, increase over our fourth quarter in 2024.
Speaker #2: Included in the fourth quarter of 2025 results were non-recurring expenses related to our acquisition of Farmer's Savings Bank that negatively impacted net income by $3.4 million on a pre-tax basis and $2.9 million on an after-tax basis, equating to $0.14 per common share.
Dennis Shaffer: Included in the Q4 2025 results were nonrecurring expenses related to our acquisition of Farmers Savings Bank that negatively impacted net income by $3.4 million on a pre-tax basis and $2.9 million on an after-tax basis, equating to $0.14 per common share. Going forward, we expect any additional expenses related to this transaction to be minimal. For the year, we reported net income of $46.2 million or $2.64 per diluted share, which compares to $31.7 million or $2.01 per diluted share for 2024. This is particularly impressive, given that there are approximately 2 million average additional shares outstanding as a result of our capital offering in July and our acquisition of Farmers Savings Bank in November.
Included in the Q4 2025 results were nonrecurring expenses related to our acquisition of Farmers Savings Bank that negatively impacted net income by $3.4 million on a pre-tax basis and $2.9 million on an after-tax basis, equating to $0.14 per common share. Going forward, we expect any additional expenses related to this transaction to be minimal. For the year, we reported net income of $46.2 million or $2.64 per diluted share, which compares to $31.7 million or $2.01 per diluted share for 2024. This is particularly impressive, given that there are approximately 2 million average additional shares outstanding as a result of our capital offering in July and our acquisition of Farmers Savings Bank in November.
Speaker #2: Going forward, we expect any additional expenses related to this transaction to be minimal. For the year, we reported net income of $46.2 million, or $2.64 per diluted share, which compares to $31.7 million, or $2.01 per diluted share for 2024.
Speaker #2: This is particularly impressive given that there are approximately 2 million average additional shares outstanding as a result of our capital offering in July and our acquisition of Farmer's Savings Bank in November.
Speaker #2: Taking into consideration the non-recurring adjustments that occurred during 2025, our earnings per share for the year were reduced by $0.15. Backing out the non-recurring fourth quarter expenses, our pre-provision net revenue increased by $6.7 million, or 55%, over the previous year's fourth quarter and by $2.2 million over our linked quarter.
Dennis Shaffer: Taking into consideration the nonrecurring adjustments that occurred during 2025, our earnings per share for the year were reduced by $0.15. Backing out the nonrecurring fourth quarter expenses, our pre-provision net revenue increased by $6.7 million or 55% over the previous year's fourth quarter and by $2.2 million over our linked quarter. Our ROA for the quarter was 1.14%, and excluding one-time expenses, was 1.42%, continuing our string of improving our ROA for each quarter of 2025. For the year, our ROA was 1.11%.
Taking into consideration the nonrecurring adjustments that occurred during 2025, our earnings per share for the year were reduced by $0.15. Backing out the nonrecurring fourth quarter expenses, our pre-provision net revenue increased by $6.7 million or 55% over the previous year's fourth quarter and by $2.2 million over our linked quarter. Our ROA for the quarter was 1.14%, and excluding one-time expenses, was 1.42%, continuing our string of improving our ROA for each quarter of 2025. For the year, our ROA was 1.11%.
Speaker #2: Our ROA for the quarter was 1.14%, and, excluding one-time expenses, was 1.42%, continuing our string of improving our ROA for each quarter of 2025.
Speaker #2: For the year, our ROA was 1.11%. For the quarter, we were pleased to announce the closing of our transaction with Farmer's Savings Bank, adding $106 million in loans and $236 million in low-cost deposits to our balance sheet, and are looking forward to a successful system conversion over the weekend of February 7th and 8th.
Dennis Shaffer: For the quarter, we were pleased to announce the closing of our transaction with Farmers Savings Bank, adding $106 million in loans and $236 million in low-cost deposits to our balance sheet, and are looking forward to a successful system conversion over the weekend of February 7 and 8. Our teams continue to work together toward the successful integration of our organizations. Net interest income for the quarter totaled $36.5 million, which is $1.9 million or a 5.5% increase over the linked quarter and a $5.1 million or 16% increase over our Q4 in the previous year. During the quarter, our earning asset yield declined eight basis points, while our funding costs declined nineteen basis points.
For the quarter, we were pleased to announce the closing of our transaction with Farmers Savings Bank, adding $106 million in loans and $236 million in low-cost deposits to our balance sheet, and are looking forward to a successful system conversion over the weekend of February 7 and 8. Our teams continue to work together toward the successful integration of our organizations. Net interest income for the quarter totaled $36.5 million, which is $1.9 million or a 5.5% increase over the linked quarter and a $5.1 million or 16% increase over our Q4 in the previous year. During the quarter, our earning asset yield declined eight basis points, while our funding costs declined nineteen basis points.
Speaker #2: Our teams continue to work together toward the successful integration of our organization. Net interest income for the quarter totaled $36.5 million, which is a $1.9 million, or 5.5%, increase over the linked quarter and a $5.1 million, or 16%, increase over our fourth quarter in the previous year.
Speaker #2: During the quarter, our earning asset yield declined eight basis points, while our funding costs declined 19 basis points. This resulted in the expansion of our net interest margin by 11 basis points to 3.69%.
Dennis Shaffer: This resulted in the expansion of our net interest margin by 11 basis points to 3.69%. As we have discussed on previous calls, during Q1, Q2, and Q3 of 2025, we were focused on increasing our tangible common equity, reducing our CRE to risk-based capital ratio, and reducing our reliance on wholesale funding. To that end, we muted loan growth by keeping CRE loan rates somewhat elevated. The success of our July capital offering and the acquisition of Farmers Savings Bank have allowed us to become a little bit more aggressive in lending across our footprint. Excluding the newly acquired Farmers loans, our loan and lease portfolio grew $68.7 million, which represents an annualized growth rate of 8.7% during Q4. We anticipate mid-single-digit loan growth in 2026.
This resulted in the expansion of our net interest margin by 11 basis points to 3.69%. As we have discussed on previous calls, during Q1, Q2, and Q3 of 2025, we were focused on increasing our tangible common equity, reducing our CRE to risk-based capital ratio, and reducing our reliance on wholesale funding. To that end, we muted loan growth by keeping CRE loan rates somewhat elevated. The success of our July capital offering and the acquisition of Farmers Savings Bank have allowed us to become a little bit more aggressive in lending across our footprint. Excluding the newly acquired Farmers loans, our loan and lease portfolio grew $68.7 million, which represents an annualized growth rate of 8.7% during Q4. We anticipate mid-single-digit loan growth in 2026.
Speaker #2: As we have discussed on previous calls, during the first three quarters of 2025, we were focused on increasing our tangible common equity, reducing our CRE to risk-based capital ratio, and reducing our reliance on wholesale funding.
Speaker #2: To that end, we muted loan growth by keeping CRE loan rates somewhat elevated. The success of our July capital offering and the acquisition of Farmer's Savings Bank have allowed us to become a little bit more aggressive in lending across our footprint.
Speaker #2: Excluding the newly acquired Farmer's loans, our loan and lease portfolio grew $68.7 million, which represents an annualized growth rate of 8.7% during the fourth quarter.
Speaker #2: We anticipate mid-single-digit loan growth in 2026. Core deposit funding continues to be a focus, and we were pleased that our non-brokered deposit funding, excluding deposits acquired through the Farmer's Savings Bank transaction, grew organically by nearly $30 million during the quarter, which allowed us to continue reducing our brokered funding.
Dennis Shaffer: Core deposit funding continues to be a focus, and we were pleased that our non-broker deposit funding, excluding deposits acquired through the Farmers Savings Bank transaction, grew organically by nearly $30 million during the quarter, which allowed us to continue reducing our brokered funding. We believe this reduction in wholesale funding enhances the value of our core deposit franchise. Earlier this week, we announced an increase in our quarterly dividend to $0.18 per share, which represents a $0.01 increase over the prior quarter. Based on the December 31 closing market price of $22.22, this represents an annualized yield of 3.2% and a dividend payout ratio of nearly 30%.
Core deposit funding continues to be a focus, and we were pleased that our non-broker deposit funding, excluding deposits acquired through the Farmers Savings Bank transaction, grew organically by nearly $30 million during the quarter, which allowed us to continue reducing our brokered funding. We believe this reduction in wholesale funding enhances the value of our core deposit franchise. Earlier this week, we announced an increase in our quarterly dividend to $0.18 per share, which represents a $0.01 increase over the prior quarter. Based on the December 31 closing market price of $22.22, this represents an annualized yield of 3.2% and a dividend payout ratio of nearly 30%.
Speaker #2: We believe this reduction in wholesale funding enhances the value of our core deposit franchise. Earlier this week, we announced an increase in our quarterly dividend to $0.18 per share, which represents a $0.01 increase over the prior quarter.
Speaker #2: Based on the December 31st closing market price of $22.22, this represents an annualized yield of 3.2% and a dividend payout ratio of nearly 30%.
Speaker #2: During the quarter, non-interest income increased $251,000, or 2.6%, from our linked quarter and increased $869,000, or 9.6%, from the fourth quarter of 2024. The primary drivers of the increase from our linked quarter were a $287,000 increase in interchange fees due to the typical elevated spending that comes during the holidays and a $380,000 increase in other fees related to leasing activity.
Dennis Shaffer: During the quarter, non-interest income increased $251,000, or 2.6% from our linked quarter, and increased $869,000, or 9.6% from Q4 2024. The primary drivers of the increase from our linked quarter were a $287,000 increase in interchange fees due to the typical elevated spending that comes during the holidays, and a $380,000 increase in other fees related to leasing activity. These increases were partially offset by proceeds on a BOLI policy we received in the prior quarter and a $416,000 reduction in residual income from our leasing activity. As we have noted, leasing fees, particularly residual income, are less predictable than more traditional banking fees.
During the quarter, non-interest income increased $251,000, or 2.6% from our linked quarter, and increased $869,000, or 9.6% from Q4 2024. The primary drivers of the increase from our linked quarter were a $287,000 increase in interchange fees due to the typical elevated spending that comes during the holidays, and a $380,000 increase in other fees related to leasing activity. These increases were partially offset by proceeds on a BOLI policy we received in the prior quarter and a $416,000 reduction in residual income from our leasing activity. As we have noted, leasing fees, particularly residual income, are less predictable than more traditional banking fees.
Speaker #2: These increases were partially offset by proceeds on a BOE policy we received in the prior quarter and a $416,000 reduction in residual income from our leasing activity.
Speaker #2: As we have noted, leasing fees, particularly residual income, are less predictable than more traditional banking fees. For the year, non-interest income decreased by $3.8 million, or 10%. This decline was primarily attributable from 2024.
Dennis Shaffer: For the year, non-interest income decreased by $3.8 million, or 10% from 2024. This decline was primarily attributable to lease revenue and residual income. You will recall that we recognized a $1 million non-recurring adjustment as part of our conversion to our new leasing system during the quarter. That, coupled with the overall decline in lease production this year, led to a reduction in lease-related revenues in 2025. We are confident the investments we have made in our leasing infrastructure this year will allow our leasing team to operate at a higher level in 2026.
For the year, non-interest income decreased by $3.8 million, or 10% from 2024. This decline was primarily attributable to lease revenue and residual income. You will recall that we recognized a $1 million non-recurring adjustment as part of our conversion to our new leasing system during the quarter. That, coupled with the overall decline in lease production this year, led to a reduction in lease-related revenues in 2025. We are confident the investments we have made in our leasing infrastructure this year will allow our leasing team to operate at a higher level in 2026.
Speaker #2: To lease revenue and residual income. You will recall that we recognized a $1 million non-recurring adjustment as part of our conversion to our new leasing system during the quarter.
Speaker #2: That, coupled with the overall decline in lease production this year, led to a reduction in lease-related revenues in 2025. We are confident the investments we have made in our leasing infrastructure this year will allow our leasing team to operate at a higher level in 2026.
Speaker #2: For the quarter, after adjusting for the $3.4 million in non-recurring expenses related to the acquisition, non-interest expense was $27.6 million, which is consistent with the $27.7 million in our linked quarter after backing out $664,000 in non-recurring Farmer's expenses incurred in the third quarter.
Dennis Shaffer: For the quarter, after adjusting for the $3.4 million in non-recurring expenses related to the acquisition, non-interest expense was $27.6 million, which is consistent with the $27.7 million in our linked quarter, after backing out $664,000 in non-recurring Farmers expenses incurred in the third quarter. Year-to-date, after adjusting for the $3.8 million in non-recurring expenses, non-interest expense decreased $2.4 million, or 2.1% from our prior year. The primary drivers of this decline were a $3.1 million decline in compensation expense and a $1.4 million decline in equipment expense, which were partially offset by slight increases in a number of other expense categories.
For the quarter, after adjusting for the $3.4 million in non-recurring expenses related to the acquisition, non-interest expense was $27.6 million, which is consistent with the $27.7 million in our linked quarter, after backing out $664,000 in non-recurring Farmers expenses incurred in the third quarter. Year-to-date, after adjusting for the $3.8 million in non-recurring expenses, non-interest expense decreased $2.4 million, or 2.1% from our prior year. The primary drivers of this decline were a $3.1 million decline in compensation expense and a $1.4 million decline in equipment expense, which were partially offset by slight increases in a number of other expense categories.
Speaker #2: Year to date, after adjusting for the $3.8 million in non-recurring expenses, non-interest expense decreased $2.4 million, or 2.1%, from our prior year.
Speaker #2: The primary drivers of this decline were a $3.1 million decline in compensation expense and a $1.4 million decline in equipment expense, which were partially offset by slight increases in a number of other expense categories.
Dennis Shaffer: The decline in compensation expense was due to a slight reduction in FTEs, controlling overtime, and an increase in the amount of salaries and wages we defer related to loan origination. The decline in equipment expense was primarily the result of a decline in depreciation expense on leased equipment. This is the result of using residual value insurance to reduce depreciation expense related to operating leases. Our efficiency ratio for the quarter improved to 57.7%, compared to 61.4% for the linked quarter and 68.3% for the prior year fourth quarter. Our effective tax rate was 16.8% for the quarter and 16.3% for the full year. Turning our focus to the balance sheet.
The decline in compensation expense was due to a slight reduction in FTEs, controlling overtime, and an increase in the amount of salaries and wages we defer related to loan origination. The decline in equipment expense was primarily the result of a decline in depreciation expense on leased equipment. This is the result of using residual value insurance to reduce depreciation expense related to operating leases. Our efficiency ratio for the quarter improved to 57.7%, compared to 61.4% for the linked quarter and 68.3% for the prior year fourth quarter. Our effective tax rate was 16.8% for the quarter and 16.3% for the full year. Turning our focus to the balance sheet.
Speaker #2: The decline in compensation expense was due to a slight reduction in FTEs, controlled over time, and an increase in the amount of salaries and wages we defer related to loan origination.
Speaker #2: The decline in equipment expense was primarily the result of a decline in depreciation expense on leased equipment. This is the result of using residual value insurance to reduce depreciation expense related to operating leases.
Speaker #2: Our efficiency ratio for the quarter improved to 57.7% compared to 61.4% for the linked quarter, and 68.3% for the prior year fourth quarter. Our effective tax rate was 16.8% for the quarter and 16.3% for the full year.
Speaker #2: Turning our focus to the balance sheet, as I mentioned, even after backing out the loans we acquired from Farmer's Savings Bank, our lending team generated $68.7 million of organic net loan growth during the quarter, which is an annualized rate of 8.7%.
Dennis Shaffer: As I mentioned, even after backing out the loans we acquired from Farmers Savings Bank, our lending team generated $68.7 million of organic net loan growth during the quarter, which is an annualized rate of 8.7%. While loans grew in nearly every category during the quarter, our most significant increase was a $90 million increase in residential real estate, which included the addition of $56 million in residential loans from Farmers. The loans we originate for our portfolio continue to be virtually all adjustable rate, and our leases all have maturities of 5 years or less. Although we were pleased with our success in bringing our CRE concentrations more in line with investor expectations, we will remain mindful of making sure we have the funding and capital to support future CRE growth.
As I mentioned, even after backing out the loans we acquired from Farmers Savings Bank, our lending team generated $68.7 million of organic net loan growth during the quarter, which is an annualized rate of 8.7%. While loans grew in nearly every category during the quarter, our most significant increase was a $90 million increase in residential real estate, which included the addition of $56 million in residential loans from Farmers. The loans we originate for our portfolio continue to be virtually all adjustable rate, and our leases all have maturities of 5 years or less. Although we were pleased with our success in bringing our CRE concentrations more in line with investor expectations, we will remain mindful of making sure we have the funding and capital to support future CRE growth.
Speaker #2: While loans grew in nearly every category during the quarter, our most significant increase was a $90 million increase in residential real estate, which included the addition of $56 million in residential loans from Farmers.
Speaker #2: 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.
Speaker #2: Although we were pleased with our success in bringing our CRE concentrations more in line with investor expectations, we will remain mindful of making sure we have the funding and capital to support future CRE growth.
Speaker #2: At December 31st, our CRE to risk-based capital ratio was 275%. During the quarter, new and renewed commercial loans were originated at an average rate of 6.74%.
Dennis Shaffer: At December 31, our CRE to risk-based capital ratio was 275%. During the quarter, new and renewed commercial loans were originated at an average rate of 6.74%. Residential real estate loans were originated at 6.13%, and loans and leases originated by our leasing division were at an average rate of 8.77%. Loans secured by office buildings make up only 4.5% 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 central business districts. Along with year-to-date loan production, our pipelines are strong, and our undrawn construction lines were $162 million at December 31.
At December 31, our CRE to risk-based capital ratio was 275%. During the quarter, new and renewed commercial loans were originated at an average rate of 6.74%. Residential real estate loans were originated at 6.13%, and loans and leases originated by our leasing division were at an average rate of 8.77%. Loans secured by office buildings make up only 4.5% 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 central business districts. Along with year-to-date loan production, our pipelines are strong, and our undrawn construction lines were $162 million at 31 December.
Speaker #2: Residential real estate loans were originated at 6.13%, and loans and leases originated by our leasing division were at an average rate of 8.77%. Loans secured by office buildings make up only 4.5% of our total loan portfolio.
Speaker #2: As we have stated previously, these loans are not secured by single or two-story offices located outside of central business districts. Rather, they are predominantly secured by high-rise metro office buildings.
Speaker #2: Along with year-to-date loan production, our pipelines are strong, and our undrawn construction lines were $162 million at December 31. As previously mentioned, we anticipate our organic loan growth to be in the mid-single digits in 2026 as we leverage Farmers' excess deposits and our loan pipelines continue to build.
Dennis Shaffer: As previously mentioned, we anticipate our organic loan growth to be in the mid-single digits in 2026 as we leverage Farmers' excess deposits and our loan pipelines continue to build. On the funding side, we added $236.1 million in low-cost deposits from the Farmers transaction. In addition, we were able to continue our pattern of reducing broker deposits for the fourth consecutive quarter by nearly $30 million. Our continued focus on attracting and retaining lower cost funding helped us lower our overall cost of funding by 19 basis points during the quarter to 2.08%.
As previously mentioned, we anticipate our organic loan growth to be in the mid-single digits in 2026 as we leverage Farmers' excess deposits and our loan pipelines continue to build. On the funding side, we added $236.1 million in low-cost deposits from the Farmers transaction. In addition, we were able to continue our pattern of reducing broker deposits for the fourth consecutive quarter by nearly $30 million. Our continued focus on attracting and retaining lower cost funding helped us lower our overall cost of funding by 19 basis points during the quarter to 2.08%.
Speaker #2: On the funding side, we added $236.1 million in low-cost deposits from the Farmers' transaction. In addition, we were able to continue our pattern of reducing broker deposits for the fourth consecutive quarter by nearly $30 million.
Speaker #2: Our continued focus on attracting and retaining lower-cost funding helped us lower our overall cost of funding by 19 basis points during the quarter to 2.08%.
Speaker #2: While we continue to see some migration from lower-rate demand accounts into higher-rate time deposits during the quarter, the addition of Farmers' lower-rate deposits allowed us to reduce our cost of deposits by four basis points to 1.59%.
Dennis Shaffer: While we continue to see some migration from lower rate demand accounts into higher rate time deposits during the quarter, the addition of Farmers' lower rate deposits allowed us to reduce our cost of deposits by four basis points to 1.59%. As shared during our last call, we launched our new digital deposit account opening platform during Q3, limiting online account opening to CDs. In Q4, we began offering online account opening for checking and money market accounts. In addition, we rolled out our deposit product redesign initiative. The goal of this initiative is to align our deposit product set with our new digital channels. We are seeing some success and look forward to launching a more comprehensive digital marketing campaign for online deposits once we get past the Farmers system conversion.
While we continue to see some migration from lower rate demand accounts into higher rate time deposits during the quarter, the addition of Farmers' lower rate deposits allowed us to reduce our cost of deposits by four basis points to 1.59%. As shared during our last call, we launched our new digital deposit account opening platform during Q3, limiting online account opening to CDs. In Q4, we began offering online account opening for checking and money market accounts. In addition, we rolled out our deposit product redesign initiative. The goal of this initiative is to align our deposit product set with our new digital channels. We are seeing some success and look forward to launching a more comprehensive digital marketing campaign for online deposits once we get past the Farmers system conversion.
Speaker #2: As shared during our last call, we launched our new digital deposit account opening platform during the third quarter, limiting online account opening to CDs.
Speaker #2: In the fourth quarter, we began offering online account opening for checking and money market accounts. In addition, we rolled out our deposit product redesign initiative.
Speaker #2: The goal of this initiative is to align our deposit product set with our new digital channels. We are seeing some success and look forward to launching a more comprehensive digital marketing campaign for online deposits once we get past the Farmers' system conversion.
Speaker #2: Our deposit base continues to be fairly granular, with our average deposit account, excluding CDs, approximately $28,000. At quarter-end, our loan-to-deposit ratio was 94.3%, which is down slightly from our linked quarter.
Dennis Shaffer: Our deposit base continues to be fairly granular, with our average deposit account, excluding CDs, approximately $28,000. At quarter end, our loan-to-deposit ratio was 94.3%, which is down slightly from our linked quarter. We anticipate maintaining this ratio within our targeted range of 90% to 95%. Other than the $464.4 million of public funds with various municipalities across our footprint, we had no deposit concentrations at year-end. 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. We view our security portfolio as a source of liquidity. At December 31, our security portfolio totaled $685 million, which represented 15.8% of our balance sheet, and when combined with our cash balances, represents 22% of our total deposits.
Our deposit base continues to be fairly granular, with our average deposit account, excluding CDs, approximately $28,000. At quarter end, our loan-to-deposit ratio was 94.3%, which is down slightly from our linked quarter. We anticipate maintaining this ratio within our targeted range of 90% to 95%. Other than the $464.4 million of public funds with various municipalities across our footprint, we had no deposit concentrations at year-end. 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. We view our security portfolio as a source of liquidity. At December 31, our security portfolio totaled $685 million, which represented 15.8% of our balance sheet, and when combined with our cash balances, represents 22% of our total deposits.
Speaker #2: We anticipate maintaining this ratio within our targeted range of 90% to 95%. Other than the $464.4 million of public funds with various municipalities across our footprint, we had no deposit concentrations at year-end.
Speaker #2: 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. We view our security portfolio as a source of liquidity.
Speaker #2: At December 31st, our security portfolio totaled $685 million, which represented 15.8% of our balance sheet and, when combined with our cash balances, represents 22% of our total deposits.
Dennis Shaffer: At December 31, 100% of our securities were classified as available for sale and had $45 million of unrealized losses associated with them. This represents a decline in unrealized losses of $6 million from our linked quarter and a $17 million decline from December 31, 2024. Civista's strong earnings continue to create capital, and our overall goal remains to maintain our capital at a level that supports organic growth and allows for prudent investment into our company. We were happy to announce an $0.18 per share dividend earlier this week, which represents a $0.01 per share increase in our quarterly dividend. We view this as a sign of confidence management and our board has in Civista's ability to continue generating strong earnings.
At December 31, 100% of our securities were classified as available for sale and had $45 million of unrealized losses associated with them. This represents a decline in unrealized losses of $6 million from our linked quarter and a $17 million decline from December 31, 2024. Civista's strong earnings continue to create capital, and our overall goal remains to maintain our capital at a level that supports organic growth and allows for prudent investment into our company. We were happy to announce an $0.18 per share dividend earlier this week, which represents a $0.01 per share increase in our quarterly dividend. We view this as a sign of confidence management and our board has in Civista's ability to continue generating strong earnings.
Speaker #2: At December 31st, 100% of our securities were classified as available for sale, and had $45 million of unrealized losses associated with them. This represents a decline in unrealized losses of $6 million from our linked quarter and a $17 million decline from December 31st, 2024.
Speaker #2: Civista's strong earnings continue to create capital, and our overall goal remains to maintain our capital at a level that supports organic growth and allows for prudent investment into our company.
Speaker #2: We were happy to announce an $0.18 per-share dividend earlier this week, which represents a $0.01 per-share increase in our quarterly dividend. We view this as a sign of confidence management and our board has in Civista's ability to continue generating strong earnings.
Speaker #2: We continue to operate with a $13.5 million repurchase authorization, and a 10b5-1 share repurchase plan in place. While we have not repurchased any shares during the year, we believe our stock is of value and we will continue to evaluate repurchase opportunities.
Dennis Shaffer: We continue to operate with a $13.5 million repurchase authorization and a 10b5-1 share repurchase plan in place. While we have not repurchased any shares during the year, we believe our stock is of value, and we will continue to evaluate repurchase opportunities. We ended the year with our Tier 1 leverage ratio at 11.32%, which is deemed well capitalized for regulatory purposes. Our tangible common equity ratio increased from 9.21% at 30 September to 9.54% at year-end on strong earnings. We feel this gives us capital to support organic growth and to invest in technology, people, and infrastructure. While economic conditions across the country remain mixed, the economy across Ohio and Southeastern Indiana is showing no systemic signs of deterioration.
We continue to operate with a $13.5 million repurchase authorization and a 10b5-1 share repurchase plan in place. While we have not repurchased any shares during the year, we believe our stock is of value, and we will continue to evaluate repurchase opportunities. We ended the year with our Tier 1 leverage ratio at 11.32%, which is deemed well capitalized for regulatory purposes. Our tangible common equity ratio increased from 9.21% at 30 September to 9.54% at year-end on strong earnings. We feel this gives us capital to support organic growth and to invest in technology, people, and infrastructure. While economic conditions across the country remain mixed, the economy across Ohio and Southeastern Indiana is showing no systemic signs of deterioration.
Speaker #2: We ended the year with our Tier 1 leverage ratio at 11.32%, which is deemed well-capitalized for regulatory purposes. Our tangible common equity ratio increased from 9.21% at September 30th to 9.54% at year-end on strong earnings.
Speaker #2: We feel this gives us capital to support organic growth and to invest in technology, people, and infrastructure. While economic conditions across the country remain mixed, the economy across Ohio and southeastern Indiana is showing no systemic signs of deterioration.
Speaker #2: Our credit quality remains solid, and our credit metrics remain stable. Delinquencies remain low and are consistent with the prior year-end, while our net charge-offs were slightly lower in 2025 than the prior year.
Dennis Shaffer: Our credit quality remains solid, and our credit metrics remain stable. Delinquencies remain low and are consistent with the prior year-end, while our net charge-offs were slightly lower in 2025 than the prior year. Our past due loans did increase $7 million during the quarter, and our non-performing loans increased by 8.5 million to $31.3 million. Total non-performing loans to total loans were 0.95%, up slightly from the linked quarter, but down from the 1.06% at the end of 2024. The continued strong performance of our credits, coupled with moderate loan growth, resulted in a $585,000 provision for the quarter.
Our credit quality remains solid, and our credit metrics remain stable. Delinquencies remain low and are consistent with the prior year-end, while our net charge-offs were slightly lower in 2025 than the prior year. Our past due loans did increase $7 million during the quarter, and our non-performing loans increased by 8.5 million to $31.3 million. Total non-performing loans to total loans were 0.95%, up slightly from the linked quarter, but down from the 1.06% at the end of 2024. The continued strong performance of our credits, coupled with moderate loan growth, resulted in a $585,000 provision for the quarter.
Speaker #2: Our past due loans did increase $7 million during the quarter, and our non-performing loans increased by $8.5 million to $31.3 million. Total non-performing loans to total loans were 0.95%, up slightly from the linked quarter, but down from the 1.06% at the end of 2024.
Speaker #2: The continued strong performance of our credits, coupled with moderate loan growth, resulted in a $585,000 provision for the quarter. Our ratio of allowance for credit losses to total loans is 1.28% at December 31, which is consistent with the 1.29% at December 31, 2024.
Dennis Shaffer: Our ratio of allowance for credit losses to total loans is 1.28% at 31 December, which is consistent with the 1.29% at 31 December 2024, and our allowance for credit losses to non-performing loans is 135% at year-end, compared to 122% at 31 December 2024. In summary, our fourth quarter was an extension of what was a very productive and good year. Among the many initiatives we accomplished were a successful capital offering, the acquisition of Farmers Savings Bank, rolling out our new digital banking solution, and migrating to a new core lease system, all of which contributed to our achievement of two long-standing goals.
Our ratio of allowance for credit losses to total loans is 1.28% at 31 December, which is consistent with the 1.29% at 31 December 2024, and our allowance for credit losses to non-performing loans is 135% at year-end, compared to 122% at 31 December 2024. In summary, our fourth quarter was an extension of what was a very productive and good year. Among the many initiatives we accomplished were a successful capital offering, the acquisition of Farmers Savings Bank, rolling out our new digital banking solution, and migrating to a new core lease system, all of which contributed to our achievement of two long-standing goals.
Speaker #2: And our allowance for credit losses to non-performing loans is 135% at year-end, compared to 122% at December 31, 2024. In summary, our fourth quarter was an extension of what was a very productive and good year.
Speaker #2: Among the many initiatives we accomplished were a successful capital offering, the acquisition of Farmers Savings Bank, rolling out our new digital banking solution, and migrating to a new core lease system.
Speaker #2: All of which contributed to our achievement of two longstanding goals. We were able to increase our tangible common equity ratio from 6.43% a year ago to 9.54% at December 31, 2025, and reduced our CRE to risk-based capital ratio from 366% at the beginning of the year to 267% at year-end.
Dennis Shaffer: We were able to increase our tangible common equity ratio from 6.43% a year ago to 9.54% at December 31, 2025, and have reduced our CRE to risk-based capital ratio from 366% at the beginning of the year to 265–275% at year-end. These investments and efforts, coupled with our expanding net interest margin and controlling expenses, produced exceptional results as our full year net income was $14.5 million or 46% higher than a year ago. Civista remains focused on creating shareholder value, serving our customers, and being a good corporate citizen in each of the communities that we serve. Thank you for your attention this afternoon and your investment, and now we'd be happy to address any questions you may have.
We were able to increase our tangible common equity ratio from 6.43% a year ago to 9.54% at December 31, 2025, and have reduced our CRE to risk-based capital ratio from 366% at the beginning of the year to 265–275% at year-end. These investments and efforts, coupled with our expanding net interest margin and controlling expenses, produced exceptional results as our full year net income was $14.5 million or 46% higher than a year ago. Civista remains focused on creating shareholder value, serving our customers, and being a good corporate citizen in each of the communities that we serve. Thank you for your attention this afternoon and your investment, and now we'd be happy to address any questions you may have.
Speaker #2: These investments and efforts, coupled with our expanding net interest margin and controlling expenses, produced exceptional results as our full-year net income was $14.5 million, or 46% higher than a year ago.
Speaker #2: Civista remains focused on creating shareholder value, serving our customers, and being a good corporate citizen in each of the communities that we serve. Thank you for your attention this afternoon, and your investment.
Speaker #2: And now, we'd be happy to address any questions you may have.
Speaker #2: have. Ladies and gentlemen, we
Operator: Ladies and gentlemen, we will now begin the question-and-answer session. If you have a question, please press star followed by the number one on your touchtone phone. You will hear a prompt that your hand has been raised. If you would like to withdraw from the polling process, please press star, then the number two. If you are using a speakerphone, please make sure to lift your handset before pressing any keys. Your first question comes from the line of Justin Crowley from Piper Sandler. Please go ahead.
Operator: Ladies and gentlemen, we will now begin the question-and-answer session. If you have a question, please press star followed by the number one on your touchtone phone. You will hear a prompt that your hand has been raised. If you would like to withdraw from the polling process, please press star, then the number two. If you are using a speakerphone, please make sure to lift your handset before pressing any keys. Your first question comes from the line of Justin Crowley from Piper Sandler. Please go ahead.
Speaker #1: We will now begin the question and answer session. If you have a question, please press star, followed by the number one on your touch-tone phone.
Speaker #1: You will hear a prompt that your hand has been raised. If you would like to withdraw from the polling process, please press star, then the number two.
Speaker #1: If you are using a speakerphone, please make sure to lift your handset before pressing any keys. Your first question comes from the line of Justin Crowley from Piper Sandler.
Speaker #1: Please go ahead.
Speaker #2: Hey, good afternoon, guys.
Justin Crowley: Hey, good afternoon, guys.
Justin Crowley: Hey, good afternoon, guys.
Speaker #3: Hi,
Dennis Shaffer: Hi, Justin.
Dennis Shaffer: Hi, Justin.
Speaker #3: Justin, I wanted to start out on the...
Charles A. Parcher: Hi, Justin.
Chuck Parcher: Hi, Justin.
Justin Crowley: Wanted to start out on the loan growth side of things. You know, some pretty decent growth in the quarter when you set aside farmers, and you mentioned the guidance for mid-single digit growth. Looking out here, just curious if you could talk a little more on how you think the complexion of that growth will take shape in terms of the split between commercial, where you talked about being a little bit more aggressive, and then, you know, on the residential side, where you've seen some growth recently?
Justin Crowley: Wanted to start out on the loan growth side of things. You know, some pretty decent growth in the quarter when you set aside farmers, and you mentioned the guidance for mid-single digit growth. Looking out here, just curious if you could talk a little more on how you think the complexion of that growth will take shape in terms of the split between commercial, where you talked about being a little bit more aggressive, and then, you know, on the residential side, where you've seen some growth recently?
Speaker #2: Loan growth side of things—some pretty decent growth in the quarter. When you set aside Farmers, and you mentioned the guidance for mid-single-digit growth looking out, I'm just curious if you could talk a little more about how you think the complexion of that growth will take shape in terms of the split between commercial, where you talked about being a little bit more aggressive, and then on the residential side, where you've seen some—
Speaker #2: growth recently. Yeah.
Charles A. Parcher: Yeah, Justin, this is Chuck. I think we'll, I think we'll see kind of go back to more normalized growth in 2026, meaning that the commercial area will lead that growth, both, both C&I and and commercial real estate. You know, we did have quite a bit of growth in 2025 in the residential side. A lot of that due to we didn't really have a good outlet for our construction product and our CRA product, so we held most of those on the book. You know, if we get a little bit of a blip downward in interest rates, we feel like, you know, we'll probably move some of that to the secondary market, it'll come off our balance sheet.
Chuck Parcher: Yeah, Justin, this is Chuck. I think we'll, I think we'll see kind of go back to more normalized growth in 2026, meaning that the commercial area will lead that growth, both, both C&I and and commercial real estate. You know, we did have quite a bit of growth in 2025 in the residential side. A lot of that due to we didn't really have a good outlet for our construction product and our CRA product, so we held most of those on the book. You know, if we get a little bit of a blip downward in interest rates, we feel like, you know, we'll probably move some of that to the secondary market, it'll come off our balance sheet. So I would focus more so on commercial and C&I growth, you know, as we normally do, and hopefully a little bit more leasing growth as well, but that'll be in the C&I bucket.
Speaker #3: Justin's the chuck. I think we'll see kind of go back to more normalized growth in '26. Meaning that the commercial area will—and commercial real—leave that growth, both C&I estate.
Speaker #3: Growth in '25 in the— we did have quite a bit on the residential side. We didn't really have a good outlet, a lot of that due to our construction product and our CRA product.
Speaker #3: So we held most of those on the book. If we get a little bit of a blip downward in interest rates, we feel like we'll probably move some of that to the secondary market, and it'll come off our balance sheet.
Speaker #3: So I would focus more so on commercial and C&I growth, as we normally do. And hopefully, a little bit more leasing growth as well, but that will be in the C&I bucket.
Charles A. Parcher: So I would focus more so on commercial and C&I growth, you know, as we normally do, and hopefully a little bit more leasing growth as well, but that'll be in the C&I bucket.
Dennis Shaffer: And Justin, I might just add that we don't want our... You know, we want our funding to kind of keep pace with our loan growth. So, and we've been pretty successful in raising deposits over the last 6, 7 quarters. I think we've grown deposits 6 of the last 7 quarters, but we kind of want to, you know, and those will-- those two things will kind of go hand in hand. And we've made some significant investments, within some technology, particularly on the digital front, that we think will help us, continue to raise deposits, so that we can continue to fuel loan growth.
Dennis Shaffer: And Justin, I might just add that we don't want our... You know, we want our funding to kind of keep pace with our loan growth. So, and we've been pretty successful in raising deposits over the last 6, 7 quarters. I think we've grown deposits 6 of the last 7 quarters, but we kind of want to, you know, and those will-- those two things will kind of go hand in hand. And we've made some significant investments, within some technology, particularly on the digital front, that we think will help us, continue to raise deposits, so that we can continue to fuel loan growth.
Speaker #4: And Justin, I might just add that we want our funding to kind of keep pace with our loan growth. So we've been pretty successful in raising deposits over the last six or seven quarters.
Speaker #4: I think we've grown deposits six of the last seven quarters, but we kind of want to—those two things will kind of go hand in hand.
Speaker #4: And we've made some significant investments in some technology, particularly on the digital front, that we think will help us continue to raise deposits so that we can continue to fuel loan growth.
Speaker #4: growth. And then I
Justin Crowley: And then, you know, I guess, you know, you mentioned it, but, you know, on that digital channel, depending on the success you see there and how much you can grow that platform, could that potentially get you beyond mid-single digit growth, or would it be that that digital channel is just going to come at, you know, obviously, it's going to be higher cost there, so you, of course, got to think about the spread on new business? Just curious there.
Justin Crowley: And then, you know, I guess, you know, you mentioned it, but, you know, on that digital channel, depending on the success you see there and how much you can grow that platform, could that potentially get you beyond mid-single digit growth, or would it be that that digital channel is just going to come at, you know, obviously, it's going to be higher cost there, so you, of course, got to think about the spread on new business? Just curious there.
Speaker #2: I guess you mentioned it, but on that digital channel, depending on the success you see there and how much you can grow that platform, could that potentially get you beyond mid-single-digit growth? Or would it be that the digital channel is just going to come at—obviously, it's going to be higher cost there.
Speaker #2: So, of course, got to think about the spread on new business. I'm just curious.
Speaker #2: there. Right.
Dennis Shaffer: Right. I know, you know, I don't think it's substantially, we'll jump that, you know, above that right now. I think, you know, again, we want to be mindful of our margin as well. So, there's a number of factors that kind of play into that, but, you know, we just, we'll be a little bit mindful of that. But we do think we have opportunities within our markets and stuff.
Dennis Shaffer: Right. I know, you know, I don't think it's substantially, we'll jump that, you know, above that right now. I think, you know, again, we want to be mindful of our margin as well. So, there's a number of factors that kind of play into that, but, you know, we just, we'll be a little bit mindful of that. But we do think we have opportunities within our markets and stuff.
Speaker #4: I don't think it substantially will jump above that right now. I think, again, we want to be mindful of our margin as well.
Speaker #4: So, there are a number of factors that kind of play into that. But we'll be a little bit mindful of that. But we do think we have opportunities within our markets and stuff.
Speaker #3: And we are excited. I mean, I think we'll see accelerated growth through the digital side in '26. It's going to be hard to quantify until we get all of our products up and running on there, and to see the success that we have.
Charles A. Parcher: We are excited. I mean, I think we'll see accelerated growth through the digital side in 2026. It's just, it's going to be hard to quantify until we get all of our products, you know, up and running on there and to see the success that we have.
Chuck Parcher: We are excited. I mean, I think we'll see accelerated growth through the digital side in 2026. It's just, it's going to be hard to quantify until we get all of our products, you know, up and running on there and to see the success that we have.
Speaker #2: Okay. Where is that digital channel now? I don't know if you have the balance handy. And what kind of yields are we talking about?
Justin Crowley: Okay. Where is that digital channel now? I don't know if you have the balances handy, and, you know, what kind of yields are we talking about there?
Justin Crowley: Okay. Where is that digital channel now? I don't know if you have the balances handy, and, you know, what kind of yields are we talking about there?
Speaker #2: There? Well, we don't have the—
Dennis Shaffer: Well, we don't have the balances handy right off the top. You know, we just, you know, we're kind of in the infancy stages of that, but we are seeing some success. I mean, we've shifted from, you know, just offering CDs online, which when we originally rolled it out, we wanted to make sure that we had, you know, things working and, you know, all our fraud prevention in place and stuff. And then now we've added checking and savings and money market accounts. And just last month - I mean, just adding, just like we were surprised that we opened 28 new checking accounts last month through the digital front and stuff. So we just think there's opportunity, but we'll try to give updates on balances as we go, maybe get further along in the year and stuff.
Dennis Shaffer: Well, we don't have the balances handy right off the top. You know, we just, you know, we're kind of in the infancy stages of that, but we are seeing some success. I mean, we've shifted from, you know, just offering CDs online, which when we originally rolled it out, we wanted to make sure that we had, you know, things working and, you know, all our fraud prevention in place and stuff. And then now we've added checking and savings and money market accounts. And just last month - I mean, just adding, just like we were surprised that we opened 28 new checking accounts last month through the digital front and stuff. So we just think there's opportunity, but we'll try to give updates on balances as we go, maybe get further along in the year and stuff.
Speaker #3: Balance is handy right off the top. We're just kind of in the infancy stages of that, but we are seeing some success. I mean, we've shifted from just offering CDs online, which when we recently rolled it out, we wanted to make sure that we had things working and all our fraud prevention in place and stuff.
Speaker #3: And then now we've added checking and savings and money market accounts. And just last month, I mean, just adding, just like we were surprised that we opened 28 new checking accounts last month through the digital front and stuff.
Speaker #3: So we just think there's opportunity, but we'll try to give updates on balances as we go, maybe get further along in the year and—
Speaker #3: stuff.
Speaker #2: Okay. Got it. And
Justin Crowley: Okay, got it. And then, you know, maybe one on the NIM. You know, got the past few rate cuts, that'll continue to work their way through here, but could you give us a sense for how the margin could trend through the year? You know, number one, I guess if we get more of a pause out of the Fed, over the near or medium term, and then maybe square that to a scenario where, you know, we do eventually get a couple more cuts.
Justin Crowley: Okay, got it. And then, you know, maybe one on the NIM. You know, got the past few rate cuts, that'll continue to work their way through here, but could you give us a sense for how the margin could trend through the year? You know, number one, I guess if we get more of a pause out of the Fed, over the near or medium term, and then maybe square that to a scenario where, you know, we do eventually get a couple more cuts.
Speaker #2: Then maybe one on the NIM. We've got the past few rate cuts; that'll continue to work their way through here. But could you give us a sense for how the margin could trend through the year?
Speaker #2: Number one, I guess if we get more of a pause out of the Fed, over the near or medium term. And then maybe square that to a scenario where we do eventually get a couple more.
Speaker #2: cuts. Yeah, Justin.
Charles A. Parcher: Yeah, Justin, that's Ian. So right now, I'd say for Q1, we'd expect that margin to expand 2 to 3 basis points.
Chuck Parcher: Yeah, Justin, that's Ian. So right now, I'd say for Q1, we'd expect that margin to expand 2 to 3 basis points.
Speaker #3: I see you. So, right now, I'd say for the first quarter, we'd expect that margin to expand two to three basis points. And then into the second quarter and beyond, maybe another three to four, and capping out around there.
Ian Whinnem: ... and then into Q2 and beyond, maybe another 3 to 4 and capping out around there.
Ian Whinnem: ... and then into Q2 and beyond, maybe another 3 to 4 and capping out around there.
Speaker #2: Okay. And that forecast, does that sort of assume a flat rate scenario, or what is embedded there?
Justin Crowley: Okay. And, you know, that forecast, does that sort of assume a flat rate scenario, or what does that—what's embedded there?
Justin Crowley: Okay. And, you know, that forecast, does that sort of assume a flat rate scenario, or what does that—what's embedded there?
Speaker #3: Right now, we're assuming a cut in June and then again in the fourth.
Ian Whinnem: Right now, we're assuming a cut in June and then again in Q4.
Ian Whinnem: Right now, we're assuming a cut in June and then again in Q4.
Speaker #3: quarter. If it stays flat, it'll be a little okay.
Justin Crowley: And then-
Justin Crowley: And then-
Ian Whinnem: If it stays flat, it'll be a little bit higher at the end of the year.
Ian Whinnem: If it stays flat, it'll be a little bit higher at the end of the year.
Speaker #2: Got it.
Speaker #3: Bit higher at the end of the year.
Speaker #2: Okay, and then maybe just one last one on expenses. Obviously, there's some noise with a partial quarter of Farmers, but what's the best way to think about the run rate?
Justin Crowley: Okay. And then maybe just one last one on expenses. Obviously, some noise with, you know, partial quarter of Farmers, but, you know, what's the best way to think about run rate, you know, certainly in Q1, but even just, you know, beyond that, considering the cost saves that'll come out of the acquisition once you get through conversion?
Justin Crowley: Okay. And then maybe just one last one on expenses. Obviously, some noise with, you know, partial quarter of Farmers, but, you know, what's the best way to think about run rate, you know, certainly in Q1, but even just, you know, beyond that, considering the cost saves that'll come out of the acquisition once you get through conversion?
Speaker #2: Certainly in the first quarter, but even just beyond that, considering the cost saves, that'll come out of the acquisition once you get through conversion.
Speaker #3: Yeah, so we have the expenses that we have in the first quarter. We’re still going to have the higher expenses for Farmers running their core, as well as some personnel.
Ian Whinnem: Yeah, so we have, you know, the expenses that we have in Q1; we're still going to have the higher expenses for Farmers running their core as well as some personnel, until the conversion occurs in the first week of February. Following that, then we'll have a reduction in some expenses, but that won't occur until that third month of Q1. So what we're anticipating is Q1 expenses to be, you know, similar to where we are, maybe in that $29 range, $29 to $29.5, for the Q1 expenses. In Q2, we're going to have the merit increases that come in once per year for our colleagues, and that'll offset those reductions I mentioned a little bit ago.
Ian Whinnem: Yeah, so we have, you know, the expenses that we have in Q1; we're still going to have the higher expenses for Farmers running their core as well as some personnel, until the conversion occurs in the first week of February. Following that, then we'll have a reduction in some expenses, but that won't occur until that third month of Q1. So what we're anticipating is Q1 expenses to be, you know, similar to where we are, maybe in that $29 range, $29 to $29.5, for the Q1 expenses. In Q2, we're going to have the merit increases that come in once per year for our colleagues, and that'll offset those reductions I mentioned a little bit ago.
Speaker #3: Until the conversion occurs in the first week of February. Following that, we'll have a reduction in some expenses, but that won't occur until that third month of the first quarter.
Speaker #3: So, what we're anticipating is first quarter expenses to be similar to where we are, maybe in that 29 range—29 to 29 and a half.
Speaker #3: For the first quarter expenses, in the second quarter, we're going to have the merit increases that come in once per year for our colleagues.
Speaker #3: And that'll offset those reductions I mentioned a little bit.
Speaker #3: ago. And we're making some
Dennis Shaffer: We're making some good investments into the company.
Dennis Shaffer: We're making some good investments into the company.
Speaker #4: good investments into the company.
Ian Whinnem: Yeah.
Justin Crowley: Yeah.
Speaker #4: Yeah, we're using some of that capital we raised to invest back in the company too. So that's in—we are buying, investing in some technology, investing in some people, and some resources to continue to grow the franchise.
Dennis Shaffer: Yeah, we're using some of that capital we raised to invest back in the company, too. So that's, you know, we are buying, you know, investing in some technology, investing in some people, and some resources to continue to grow the franchise.
Dennis Shaffer: Yeah, we're using some of that capital we raised to invest back in the company, too. So that's, you know, we are buying, you know, investing in some technology, investing in some people, and some resources to continue to grow the franchise.
Speaker #2: Okay, great. Very helpful. I appreciate it.
Justin Crowley: Okay, great. Very helpful. I appreciate it.
Justin Crowley: Okay, great. Very helpful. I appreciate it.
Speaker #2: it. Thank
Ian Whinnem: Thank you.
Ian Whinnem: Thank you.
Speaker #3: you.
Speaker #5: Your next question comes from the line of Jeff, really from V. Davidson. Please go ahead.
Operator: Your next question comes from the line of Jeff Rulis from D.A. Davidson. Please go ahead.
Operator: Your next question comes from the line of Jeff Rulis from D.A. Davidson. Please go ahead.
Speaker #6: Thanks. Good afternoon. Hi,
Jeff Rulis: Thanks. Good afternoon.
Jeff Rulis: Thanks. Good afternoon.
Ian Whinnem: Hi, Jeff.
Ian Whinnem: Hi, Jeff.
Speaker #4: Jeff. Just a
Speaker #3: Hi.
Dennis Shaffer: Hi.
Dennis Shaffer: Hi.
Jeff Rulis: Just a question on the credit side. It sounds like, you know, pretty steady state. You don't seem to, I guess, tracking some of the linked quarter. The question being, was a lot of that acquired on the F- on Farmers side from the linked quarter increase?
Jeff Rulis: Just a question on the credit side. It sounds like, you know, pretty steady state. You don't seem to, I guess, tracking some of the linked quarter. The question being, was a lot of that acquired on the F- on Farmers side from the linked quarter increase?
Speaker #6: Question on the credit side. It sounds like pretty steady state. You don't seem to, I guess, tracking some of the link quarter. The question being, was a lot of that acquired on the Farmer side from the link quarter increase?
Mike Mulford: Jeff, this is Mike Mulford. No, the credit quality we brought over from FSP was very good, so that was not the reason for the increase.
Mike Mulford: Jeff, this is Mike Mulford. No, the credit quality we brought over from FSP was very good, so that was not the reason for the increase.
Speaker #3: Jeff, this is Mike Mulbert. No, the credit quality brought over from FSP was very good, so it was not the reason for the—
Speaker #3: increase. What was
Jeff Rulis: What was that? If you could, just in terms of-
Jeff Rulis: What was that? If you could, just in terms of-
Speaker #6: That? If you could just determine that.
Mike Mulford: We had one credit that we had participation with another bank that we put on nonaccrual in Q4. That was about $8 million. And so we're working with that lead bank to resolve that, but that was a case of, you know, it had been current, it matured in November, so it did hit 30 days at year-end. But again, we put it on nonaccrual until we get the situation resolved.
Speaker #3: We had one credit that we had participation with another bank, that we put on non-accrual in the fourth quarter. It was about $8 million. And so we're working with that lead bank to resolve that.
Mike Mulford: We had one credit that we had participation with another bank that we put on nonaccrual in Q4. That was about $8 million. And so we're working with that lead bank to resolve that, but that was a case of, you know, it had been current, it matured in November, so it did hit 30 days at year-end. But again, we put it on nonaccrual until we get the situation resolved.
Speaker #3: But that was a case of it had been current. It matured in November, so it did hit 30 days at year-end, but again, we put it on non-accrual until we get the situation.
Speaker #3: resolved.
Ian Whinnem: And Jeff, that was, that was $8 million, as Mike mentioned, of the $8.5 million increase in the nonperforming. So you know, it really was just that one credit, so we think it's somewhat, you know.
Ian Whinnem: And Jeff, that was, that was $8 million, as Mike mentioned, of the $8.5 million increase in the nonperforming. So you know, it really was just that one credit, so we think it's somewhat, you know.
Speaker #4: And Jeff, that was $8 million, as Mike mentioned, of the $8.5 million increase in the non-performing. So it really was just that one credit.
Speaker #4: So we think it's somewhat an isolated
Mike Mulford: Isolated.
Mike Mulford: Isolated.
Ian Whinnem: Yeah, an isolated instance.
Ian Whinnem: Yeah, an isolated instance.
Speaker #4: Instance. And non-performing is actually—we're, got it, down for the year. On a percentage—
Jeff Rulis: Got it.
Jeff Rulis: Got it.
Dennis Shaffer: The nonperformings actually were down for the year on a percentage basis.
Dennis Shaffer: The nonperformings actually were down for the year on a percentage basis.
Speaker #4: basis. Yeah.
Jeff Rulis: Yeah, we're... Okay, that sounds like that credit might have some, you know, potential for a more expedited resolution, or I don't want to put words in your mouth, but you feel good about that moving through?
Jeff Rulis: Yeah, we're... Okay, that sounds like that credit might have some, you know, potential for a more expedited resolution, or I don't want to put words in your mouth, but you feel good about that moving through?
Speaker #6: We're okay. That sounds like that credit might have some potential for a more expedited resolution, or—I don't want to put words in your mouth—but you feel good about that moving.
Speaker #6: through? It's an
Mike Mulford: It's in the early stages, and we're working with the lead bank, and while it was not originated by us, we participated in it. It was a borrower that we had been familiar with and we had made loans to before in the past. So, again, we're working through it. I expect it, it'll take the better part of 2026 to work that out.
Mike Mulford: It's in the early stages, and we're working with the lead bank, and while it was not originated by us, we participated in it. It was a borrower that we had been familiar with and we had made loans to before in the past. So, again, we're working through it. I expect it, it'll take the better part of 2026 to work that out.
Speaker #3: Early stages. Again, we're working with the lead bank, and while it was not originated by us, we participated in it. It was a borrower that we had been familiar with, and we had made loans to before.
Speaker #3: In the past, so again, we're working through it. I expect it'll take the better part of '26 to work that out.
Speaker #4: And even though we knew the borrower, we have no other loans on the books with that borrower. So, and then just, Jeff, we typically don't buy a lot of participations.
Ian Whinnem: And then even though we knew the borrower, we have no other loans on the books with that borrower. So, and then, you know, just Jeff, we typically don't buy a lot of participations. We participate loans out, but we typically have not been a bank that's bought a lot of participations just because we have such strong organic, and such strong demand within our market. So most of what we-- how we grow our portfolio is organically.
Ian Whinnem: And then even though we knew the borrower, we have no other loans on the books with that borrower. So, and then, you know, just Jeff, we typically don't buy a lot of participations. We participate loans out, but we typically have not been a bank that's bought a lot of participations just because we have such strong organic, and such strong demand within our market. So most of what we-- how we grow our portfolio is organically.
Speaker #4: We participate in loans out, but we typically have not been a bank that's bought a lot of participations, just because we have such strong organic—such strong demand within our market.
Speaker #4: So most of how we grow our portfolio is organically.
Jeff Rulis: Got it. Thanks. And just to follow on the margin, 3.69, just trying to get what proportion of accretion assumptions, if we're looking at kind of inching up from here, any unpacking the core versus accretion?
Jeff Rulis: Got it. Thanks. And just to follow on the margin, 3.69, just trying to get what proportion of accretion assumptions, if we're looking at kind of inching up from here, any unpacking the core versus accretion?
Speaker #6: Got it. Thanks. And just to follow up on the margin, 3.69%, just trying to get what proportion of accretion assumptions—if we're looking at kind of inching up from here?
Speaker #6: Any unpacking the core versus accretion?
Speaker #3: Yeah, so within the fourth quarter, the accretion is going to be in there for two full months of the three-month quarter. When we think in terms of the dollar impact, it's pretty minimal.
Ian Whinnem: Yeah, so within Q4, the accretion is going to be in there for two full months of the three, of the three-month quarter. When we think in terms of the dollar impact, it's pretty minimal. It's a immaterial acquisition for the most part.
Ian Whinnem: Yeah, so within Q4, the accretion is going to be in there for two full months of the three, of the three-month quarter. When we think in terms of the dollar impact, it's pretty minimal. It's a immaterial acquisition for the most part.
Speaker #3: It's an immaterial acquisition for the most.
Speaker #6: Okay, all right. Thanks. Last one—I apologize. The tax rate is something in the mid-16s. Is that a level you'd subscribe to?
Jeff Rulis: Okay. All right. Thanks. Last one, I apologize. The tax rate is something in the mid-16s. Is that a level you'd subscribe to?
Jeff Rulis: Okay. All right. Thanks. Last one, I apologize. The tax rate is something in the mid-16s. Is that a level you'd subscribe to?
Speaker #3: Correct. Yeah. We're anticipating $16.5 million for 2027.
Ian Whinnem: Correct. Yeah, we're anticipating 16.5 for 2027.
Ian Whinnem: Correct. Yeah, we're anticipating 16.5 for 2027.
Speaker #6: Great. Thank you.
Jeff Rulis: Great. Thank you.
Jeff Rulis: Great. Thank you.
Speaker #5: Ladies and gentlemen, as a reminder, if you would like to ask a question.
Operator: Ladies and gentlemen, just a reminder, if you would like to ask a question-
Operator: Ladies and gentlemen, just a reminder, if you would like to ask a question-
Ian Whinnem: I said that poorly. 16.5 for 2026. My apologies.
Ian Whinnem: I said that poorly. 16.5 for 2026. My apologies.
Speaker #3: I said that for at least 16 and a half for 2026. My
Operator: ... Ladies and gentlemen, if you'd like to ask a question, please press star, followed by the number one on your touch-tone phone. Your next question comes from the line of Terry McEvoy from Stephens. Please go ahead.
Operator: Ladies and gentlemen, if you'd like to ask a question, please press star, followed by the number one on your touch-tone phone. Your next question comes from the line of Terry McEvoy from Stephens. Please go ahead.
Speaker #5: Ladies and gentlemen, if you'd like to ask a question, please press star, followed by the number one on your touchtone phone. Your next question comes from the line of Terry McEweigh from Stevens.
Speaker #5: Please go
Speaker #5: ahead.
Speaker #3: Hi, Terry. Hi, Hey, Terry.
Charles A. Parcher: Hi, Terry.
Chuck Parcher: Hi, Terry.
Dennis Shaffer: Hi, Terry.
Dennis Shaffer: Hi, Terry.
Speaker #3: Terry. Hi, guys.
Terry McEvoy: Hi, guys. Good afternoon. Could you just talk about new commercial loan yields and, and maybe just comment on loan spreads and overall competition there?
Terry McEvoy: Hi, guys. Good afternoon. Could you just talk about new commercial loan yields and, and maybe just comment on loan spreads and overall competition there?
Speaker #6: Good afternoon. Could you just talk about new commercial loan yields, and maybe just comment on loan spreads and overall competition there?
Speaker #3: Well, I mean, Ohio is still pretty competitive. Ohio and Indiana, I should say, are still relatively competitive. I think we put last December, new interview came on at 6.73.
Charles A. Parcher: Well, I mean, Ohio is still pretty competitive. Ohio and Indiana, I should say, is still relatively competitive. I think we put, you know, last December, new and renewed came on at 673. I would tell you some of the larger deals are coming in a little bit less than that. I would say the good deals are probably coming in at 6.25, 6.5 right now. But it's been relatively consistent. You know, the five-year Treasury has been, you know, relatively constant here over the last 60 to 90 days, and you know, that margin is still coming in, you know, relatively 275, give or take, over the five-year.
Chuck Parcher: Well, I mean, Ohio is still pretty competitive. Ohio and Indiana, I should say, is still relatively competitive. I think we put, you know, last December, new and renewed came on at 673. I would tell you some of the larger deals are coming in a little bit less than that. I would say the good deals are probably coming in at 6.25, 6.5 right now. But it's been relatively consistent. You know, the five-year Treasury has been, you know, relatively constant here over the last 60 to 90 days, and you know, that margin is still coming in, you know, relatively 275, give or take, over the five-year.
Speaker #3: I would tell you some of the larger deals are coming in a little bit less than that. I would say the good deals are probably coming in at 6 and a quarter, 6 and a half.
Speaker #3: Right now, it's been relatively consistent. The five-year Treasury has been relatively constant here over the last 60 to 90 days. And that margin is still coming in at roughly 275, give or take, over the—
Speaker #3: five-year. We do have some loans repricing in the
Dennis Shaffer: We do have some loans repricing in the Q1 and throughout the remainder of the year. Chuck, you want to share that with us?
Dennis Shaffer: We do have some loans repricing in the Q1 and throughout the remainder of the year. Chuck, you want to share that with us?
Speaker #4: First quarter and throughout the remainder of the year, Chuck, do you want to share that with us?
Speaker #3: Yeah, we're just bringing that based on the 12/31 year-end. We've got about $225 million of credit that we put on three- or five-year adjustables.
Charles A. Parcher: Yeah, we just bring that. For, based on the 31 December year-end, we've got about $225 million of credit that we put on, you know, 3- or 5-year adjustables, and they will reprice throughout 2026. And those rates, give or take, I would say, are coming off 4.75 and probably come back into, you know, probably pick up 1.5 on most of those.
Chuck Parcher: Yeah, we just bring that. For, based on the 31 December year-end, we've got about $225 million of credit that we put on, you know, 3- or 5-year adjustables, and they will reprice throughout 2026. And those rates, give or take, I would say, are coming off 4.75 and probably come back into, you know, probably pick up 1.5 on most of those.
Speaker #3: And they will reprice throughout 2026. And those rates, give or take, I would say, are coming off 4.75% and probably will come back in to probably pick up a point and a half on most of those.
Terry McEvoy: That, that's helpful. Thank you. And then, you've got a couple large Ohio banks focused elsewhere, Detroit, I'm going to guess, what? 100 miles from Sandusky, which is another market going through some disruption. So how are you thinking about maybe playing some offense in 2026, given that backdrop, and could it impact your expenses if hiring picks up?
Terry McEvoy: That, that's helpful. Thank you. And then, you've got a couple large Ohio banks focused elsewhere, Detroit, I'm going to guess, what? 100 miles from Sandusky, which is another market going through some disruption. So how are you thinking about maybe playing some offense in 2026, given that backdrop, and could it impact your expenses if hiring picks up?
Speaker #6: That's helpful, thank you. And then you've got a couple of large Ohio banks focused elsewhere. Detroit, I'm going to guess, is about 100 miles from Sandusky, which is another market going through some disruption.
Speaker #6: So, how are you thinking about maybe playing some offense in 2026, given that backdrop? And could it impact your expenses if hiring picks up?
Charles A. Parcher: You know, we feel good about it, Terry. I mean, we've already hired. I think we've got 3 new lenders coming on here at the beginning of the year. Now, they were replacements or filling slots of people that got elevated within our organization. We got another couple people coming on in at the end of Q1, waiting to get their bonuses at their shops. So, you know, we feel good about where the talent's coming from. We're picking some up from banks that, to be honest with you, have either been that are either being acquired or already have been.
Chuck Parcher: You know, we feel good about it, Terry. I mean, we've already hired. I think we've got 3 new lenders coming on here at the beginning of the year. Now, they were replacements or filling slots of people that got elevated within our organization. We got another couple people coming on in at the end of Q1, waiting to get their bonuses at their shops. So, you know, we feel good about where the talent's coming from. We're picking some up from banks that, to be honest with you, have either been that are either being acquired or already have been.
Speaker #4: We feel good about it, Terry. I mean, we've already hired—I think we've got three new lenders coming on here at the beginning of the year.
Speaker #4: Now, they were replacements or filling slots of people that got elevated within our organization. We’ve got another couple of people coming on at the end of the first quarter, waiting to get their bonuses at their shops.
Speaker #4: So we feel good about where the talent is coming from. We're picking them up from banks that, to be honest with you, have either been—or are either being—acquired or already have been.
Charles A. Parcher: You know, obviously, the WestBanco, Premier One was a big one that was last year, and we've got some talent, you know, from there. You know, Ian's, most of Ian's treasury area, finance area came from Premier. And we feel really good about the disruptions. We're not only getting calls from those employees at those institutions, but we're also getting calls from the clients of those institutions as they start to go through the changes. So we feel like we've got a lot of opportunity just because of the disruption.
You know, obviously, the WestBanco, Premier One was a big one that was last year, and we've got some talent, you know, from there. You know, Ian's, most of Ian's treasury area, finance area came from Premier. And we feel really good about the disruptions. We're not only getting calls from those employees at those institutions, but we're also getting calls from the clients of those institutions as they start to go through the changes. So we feel like we've got a lot of opportunity just because of the disruption.
Speaker #4: Obviously, the West Banco Premier one was a big one—that was last year—and we've got some talent from there. Ian, most of Ian's treasury area, finance area, came from Premier.
Speaker #4: And we feel really good about the disruptions. We're not only getting calls from those employees at those institutions, but we're also getting calls from the clients of those institutions as they start to go through the changes.
Speaker #4: So we feel like we've got a lot of opportunity just because of the disruption.
Speaker #3: Yeah. And that expense rate I mentioned earlier does include some of those additions, that is, some of the investments we're making back into the company on the people side.
Dennis Shaffer: Yeah, and that expense rate we mentioned earlier does include some of those additions, Terry, so that's some of the investments we're making back into the company on the people side.
Dennis Shaffer: Yeah, and that expense rate we mentioned earlier does include some of those additions, Terry, so that's some of the investments we're making back into the company on the people side.
Speaker #6: Great. Thanks for taking my questions. Have a good day.
Terry McEvoy: Great. Thanks for taking my questions. Have a good day.
Terry McEvoy: Great. Thanks for taking my questions. Have a good day.
Speaker #4: Thanks, Terry.
Charles A. Parcher: Thanks, Terry.
Chuck Parcher: Thanks, Terry.
Speaker #5: Your last question is from the line of Tim O’Brien with KBW. Please go ahead.
Operator: Your last question is from the line of Tim Switzer from KBW. Please go ahead.
Operator: Your last question is from the line of Tim Switzer from KBW. Please go ahead.
Speaker #5: ahead. Hey, good afternoon.
Timothy Switzer: Hey, good afternoon. Thanks for taking my question.
Tim Switzer: Hey, good afternoon. Thanks for taking my question.
Speaker #2: Thanks for taking my question. Hey,
Charles A. Parcher: Hey, Tim.
Chuck Parcher: Hey, Tim.
Speaker #3: Hi, Tim.
Speaker #3: Hi, Tim. Tim, I apologize if any—
Dennis Shaffer: Hi, Tim.
Dennis Shaffer: Hi, Tim.
Timothy Switzer: I apologize if any of this has already been covered, but the first question I have is with regards to the capital stack. You guys have pretty hefty capital levels, closed Farmers. You know, is there any like optimization you need to make now that you've closed that deal? And then, you know, what are your thoughts on share repurchases going forward? I know historically, you guys have said you, you know, you think it's a good value at these prices.
Tim Switzer: I apologize if any of this has already been covered, but the first question I have is with regards to the capital stack. You guys have pretty hefty capital levels, closed Farmers. You know, is there any like optimization you need to make now that you've closed that deal? And then, you know, what are your thoughts on share repurchases going forward? I know historically, you guys have said you, you know, you think it's a good value at these prices.
Speaker #2: If this has already been covered, but the first question I have is with regards to the capital stack—you guys are pretty healthy. Capital levels are close to Farmers.
Speaker #2: Are there any optimizations you need to make now that you've closed that deal? And then, what are your thoughts on share repurchases going forward?
Speaker #2: I know historically you guys have said you think it's a good value at these prices.
Speaker #3: Yeah, yeah. We still think we're a value, so we continue to— We didn't repurchase anything last year, but we do have our $13.5 million authorization in place.
Dennis Shaffer: Yeah, yeah, we still think we're of value, so we continue to value, you know, we didn't repurchase anything last year, but we do have our $13.5 million authorization in place. We have, you know, we're set up there, and as long as we feel, you know, there's value there, we certainly will consider. We think that's a good way to deploy capital, but we kind of evaluate. We've been in a blackout where we weren't able to purchase that through the acquisition. So we continue to evaluate that, and as long as we continue to have strong earnings, that's definitely a part of our capital stack. So, you know, we're always looking for ways to maximize our capital.
Dennis Shaffer: Yeah, yeah, we still think we're of value, so we continue to value, you know, we didn't repurchase anything last year, but we do have our $13.5 million authorization in place. We have, you know, we're set up there, and as long as we feel, you know, there's value there, we certainly will consider. We think that's a good way to deploy capital, but we kind of evaluate. We've been in a blackout where we weren't able to purchase that through the acquisition. So we continue to evaluate that, and as long as we continue to have strong earnings, that's definitely a part of our capital stack. So, you know, we're always looking for ways to maximize our capital.
Speaker #3: We have—we're set up there. And as long as we feel there's value there, we certainly will consider. We think that's a good way to deploy capital, but we kind of evaluate.
Speaker #3: We've been in a blackout, where we weren't able to purchase that through the acquisition. So we continue to evaluate that. And as long as we continue to have strong earnings, that's definitely part of our capital stack.
Speaker #3: So we're always looking for ways to maximize our capital.
Speaker #2: Got it. Okay. And I assume most everything on guidance has been covered by this point, but can you maybe discuss what you guys are seeing for leasing revenue next year?
Timothy Switzer: Got it. Okay. I assume most everything on guidance has been covered by this point, but can you maybe discuss what you guys are seeing for leasing revenue next year? It's just always kind of a tougher item to model.
Tim Switzer: Got it. Okay. I assume most everything on guidance has been covered by this point, but can you maybe discuss what you guys are seeing for leasing revenue next year? It's just always kind of a tougher item to model.
Speaker #2: It's just always kind of a tougher item to model.
Speaker #3: Yeah, so I can speak to that. And are you talking about the non-interest income side of it there? Okay.
Charles A. Parcher: Yeah. So, I, I can speak to that. And, are you talking about the non-interest income side of it there?
Chuck Parcher: Yeah. So, I, I can speak to that. And, are you talking about the non-interest income side of it there?
Timothy Switzer: Exa-exactly.
Tim Switzer: Exa-exactly.
Charles A. Parcher: Okay. Yeah, so it is a little lumpy, and so, within the Q4, we did have a lease disposal gain that came in. It was about half a million dollars, about $500,000. So when we think in terms of the guidance, you know, within the Q4, we have a Mastercard annual volume bonus that we get of about $250,000. That comes in each year. We have those security gains, which is about $120,000. And then that Q1, usually we see a little bit of a slowdown on the mortgage gain on sale, as well as the leasing gain on sale.
Chuck Parcher: Okay. Yeah, so it is a little lumpy, and so, within the Q4, we did have a lease disposal gain that came in. It was about half a million dollars, about $500,000. So when we think in terms of the guidance, you know, within the Q4, we have a Mastercard annual volume bonus that we get of about $250,000. That comes in each year. We have those security gains, which is about $120,000. And then that Q1, usually we see a little bit of a slowdown on the mortgage gain on sale, as well as the leasing gain on sale.
Speaker #3: Yeah, so it exactly is a little lumpy. And so within the fourth quarter, we did have a lease disposal gain that came in. It was about half a million dollars, about $500,000.
Speaker #3: So when we think in terms of the guidance, within the fourth quarter, we have a MasterCard annual volume bonus that we get of about $250,000 that comes in each year.
Speaker #3: We have those security gains, which is about $120,000. And then, that first quarter, usually we see a little bit of a slowdown on the mortgage gain on sale as well as the leasing gain on sale.
Charles A. Parcher: So, you know, we expect that leasing revenue to drop off on the gain on sale, and maybe a little bit slower on the traditional leasing revenue. But total non-interest income, we probably guide you towards maybe $7.8 to $8.2 for Q1, and then increasing from there to Q2, maybe another $0.5 million.
Speaker #3: So we expect that leasing revenue to drop off on the gain on sale, and maybe a little bit slower on the traditional leasing revenue.
So, you know, we expect that leasing revenue to drop off on the gain on sale, and maybe a little bit slower on the traditional leasing revenue. But total non-interest income, we probably guide you towards maybe $7.8 to 8.2 for Q1, and then increasing from there to Q2, maybe another $0.5 million.
Speaker #3: But total non-interest income, we've probably guided towards maybe $7.8 to $8.2 million for the first quarter. And then increasing from there to the second quarter, maybe another half a million.
Speaker #2: Okay. All right. That's all for me. Thank you.
Timothy Switzer: Okay. All right. That's all for me. Thank you, guys.
Tim Switzer: Okay. All right. That's all for me. Thank you, guys.
Speaker #2: guys. Thanks,
Charles A. Parcher: Thanks, Tim.
Chuck Parcher: Thanks, Tim.
Speaker #4: Tim, there are no further questions at this time.
Operator: There are no further questions at this time. I would like to turn the call back to Mr. Dennis Shaffer for closing comments. Sir, please go ahead.
Operator: There are no further questions at this time. I would like to turn the call back to Mr. Dennis Shaffer for closing comments. Sir, please go ahead.
Speaker #5: Thank you. I would like to turn the call back to Mr. Dennis Shaffer for closing comments. Sir, please go ahead.
Speaker #3: Thank you. Well, in closing, I just want to thank everyone for joining today's call and for your investment in Civista. Our quarter and our year-end results were due in large part to the hard work and the discipline of our team.
Dennis Shaffer: Thank you. Well, in closing, I just want to thank everyone for joining today's call and, for your, your investment in Civista. Our quarter and our year-end results were due in large part to the hard work, and the discipline of our team. I remain confident that this quarter and this year's list, that this quarter and the year's list of accomplishments is our strong financial results and our disciplined approach to managing Civista, positions us very well, for, for long-term future success. And just look forward to talking to, to everyone in a few months to share our first quarter results. So thank you for your time today.
Dennis Shaffer: Thank you. Well, in closing, I just want to thank everyone for joining today's call and, for your, your investment in Civista. Our quarter and our year-end results were due in large part to the hard work, and the discipline of our team. I remain confident that this quarter and this year's list, that this quarter and the year's list of accomplishments is our strong financial results and our disciplined approach to managing Civista, positions us very well, for, for long-term future success. And just look forward to talking to, to everyone in a few months to share our first quarter results. So thank you for your time today.
Speaker #3: I remain confident that this quarter and this year's list that this quarter and the year's list of accomplishments are strong financial results, and our discipline approach to managing Savista positions us very well for long-term future success.
Speaker #3: And just look forward to talking to everyone in a few months to share our first quarter results. So, thank you for your time.
Speaker #3: Today, we do, and gentlemen, this
Operator: Ladies and gentlemen, this concludes today's conference call. Thank you very much for your participation. You may now disconnect.
Operator: Ladies and gentlemen, this concludes today's conference call. Thank you very much for your participation. You may now disconnect.
