Exactly, you got it right.
For sources in your 192.168.95.0/24 network going out to ether10, it will substitute the source address of all packets with 172.16.95.253 (the interface's IP). It will track the connections, and replies will have the response destination substituted back to their original ones.
All traffic from 192.168.95.0/24 will appear as if originated from the router itself on ether10.
Outgoing connections, together with their associated replies will be unaffected, because they are tracked, too.
Torturing CCR1009-7G-1C-1S+, RB450G, RB750GL, RB951G-2HnD, RB960PGS, RB260GSP, OmniTIK 5HnD and NetMetal 922UAGS-5HPacD + R11e-5HnD in my home network.