Civista Bancshares, Inc. (NASDAQ:CIVB) Q4 2022 Earnings Call Transcript

Dennis Shaffer: Well, Paul can correct me, but it will be baked in over 3 years. It will immediately happen in this first quarter. So Paul’s nodding. So that like the right answer. And then I think we — as we move forward, we’re growing our capital. Our earnings, we have strong earnings. We’re going to continue to be there. We’re going to be very mindful of how we handle share repurchases and things like that. You’ll notice that we’ve really pulled back on that in the fourth quarter. And so I think we’re just continuing to be mindful there as we move forward. Our capital levels are pretty strong. We do want to — we think the TCE was really kind of flat that fourth quarter. We had the acquisition in there that impacted it some as well. So we think that, that will continue to start going the other direction here for us in the ’23.

Timothy Switzer: And maybe since I’ve got you, and this is the platform to ask the question. You acquired a bank, integrated it. You are off, you hit the ground running with the leasing company deal. So I guess my question is, what are your thoughts on nonbank or bank M&A in 2023 for your company?

Dennis Shaffer: Well, I think we obviously will continue to explore that. We want to continue to grow if it’s the right deal for us and we can do it in a profitable manner that benefits our shareholders and we get employees and customers. We want to try to do that. There are some greater challenges right now when you do an M&A deal with all the AOCI adjustments that we have to look at in the marks that you have to give the credit portfolio, but it doesn’t scare us away. We think we’ve been very successful in doing M&A deals. We think we integrate these pretty well. So we’re going to continue to be actively looking and pursuing other deals. We want to get to a certain size because we think we continue to get more we become more efficient as a company. So we’ll continue to have dialogue. And if the right deal comes along and it’s the right fit for our company, we’ll pursue that.

Operator: Thank you. And ladies and gentlemen, this concludes our question-and-answer session. I’d like to turn the conference back over to the management team for any final remarks.

Dennis Shaffer: Thank you. In closing, I just want to thank everyone for listening and thank those that participated in the call. Again, we are very pleased with the results of our fourth quarter and for the year, a very, very strong year for us. And while 2023 on would be another year full of new challenges. We look forward to meeting those challenges and to talking to all of you again here in a few months to share our first quarter results. So thank you for your time today.

Operator: Thank you, sir. This concludes today’s conference call. We thank you all for attending today’s presentation. You may now disconnect your lines, and have a wonderful evening.