Release Date: April 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Could you discuss the decision to formally fill the CFO position now?
A: Dennis Shafer, CEO of Civista Bancshares, explained that the timing was right as the current CFO, Todd Michael, is approaching retirement. The transition period will allow the new CFO to benefit from Todd's institutional knowledge.
Q: What are your updated thoughts on the expense base and how do you expect it to trend going forward?
A: Richard Dutton, SVP, mentioned that the expense guidance of $28.4 million per quarter remains good for the year, with merit increases being the only significant additional expense anticipated.
Q: Can you provide more details on the net interest margin pressures and expectations for stabilization?
A: Richard Dutton addressed that despite previous contractions, there are initiatives like the Ohio homebuyers program expected to bring in low-cost funding, which could help stabilize and improve the margin in future quarters.
Q: How are you managing the challenges in the M&A environment?
A: Dennis Shafer noted the current M&A environment is challenging due to difficulties in loan mark evaluations and the impact of higher rates on loan books, making it tough for both buyers and sellers.
Q: Could you talk about the loan pipelines and your confidence in mid-single digit growth rates?
A: Richard Dutton confirmed that loan pipelines are strong, particularly in the multifamily sector across major metro markets, and they are maintaining disciplined pricing to support healthy margins.
Q: What is the outlook for fee income, particularly with changes in mortgage banking and lease syndications?
A: Dennis Shafer expressed optimism about mortgage banking, noting an increase in production and efforts to improve salability. Additionally, a new syndication desk at their leasing company aims to enhance gains on sale.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
