Emily Lee's questions to Civista Bancshares Inc (CIVB) leadership • Q1 2025
Question
Emily Lee from Keefe, Bruyette & Woods, Inc. (KBW) inquired about the bank's deposit repricing strategy in a hypothetical scenario with no Fed rate cuts and asked for an outlook on credit quality amidst macroeconomic uncertainty.
Answer
CFO Ian Whinnem explained that without rate cuts, the bank expects to reprice $100-$140 million in retail CDs per quarter, picking up 10-15 bps on renewals. He noted their strategy of placing the highest rates on shorter-term CDs for protection. He also mentioned the upcoming digital account opening platform is expected to raise organic deposits, allowing them to pay down more expensive funding. Regarding credit, management expressed confidence, highlighting that delinquencies are down, the allowance is healthy at 1.30%, and the overall credit picture is stable.