Business

Civista Bancshares, Inc. Announces First Quarter 2020 Earnings

ensive income of $3.0 million.       

Asset Quality

Civista recorded net recoveries of $55 thousand for the three months of 2020 compared to net recoveries of $143 thousand for the same period of 2019.  The allowance for loan losses to loans was 0.97% at March 31, 2020 and 0.86% at December 31, 2019.     

Allowance for Loan Losses

     

(unaudited – dollars in thousands)

     
 

March 31,

 

March 31,

 

2020

 

2019

Beginning of period

$          14,767

 

$          13,679

Charge-offs

(24)

 

(239)

Recoveries

79

 

382

Provision

2,126

 

End of period

$          16,948

 

$          13,822

Non-performing assets at March 31, 2020 were $8.6 million, a 6.1% decrease from December 31, 2019.  The non-performing assets to assets ratio decreased to 0.33% from 0.39% at December 31, 2019.  The allowance for loan losses to non-performing loans increased to 197.97% from 161.95% At December 31, 2019.   

Non-performing Assets

     

(unaudited – dollars in thousands)

March 31,

 

December 31,

 

2020

 

2019

Non-accrual loans

$           6,072

 

$           6,115

Restructured loans

2,489

 

3,004

Total non-performing loans

8,561

 

9,119

Other Real Estate Owned

 

Total non-performing assets

$           8,561

 

$           9,119

Conference Call and Webcast

Civista Bancshares, Inc. will also host a conference call to discuss the Company’s financial results for the first quarter of 2020 at 1:00 p.m. ET on Friday, April 24, 2020.  Interested parties can access the live webcast of the conference call through the Investor Relations section of the Company’s website, www.civb.com.  Participants can also listen to the conference call by dialing 855-238-2712 and ask to be joined into the Civista Bancshares, Inc. first quarter 2020 earnings call.  Please log in or dial in at least 10 minutes prior to the start time to ensure a connection.

An archive of the webcast will be available for one year on the Investor Relations section of the Company’s website (www.civb.com).

Forward Looking Statements

This press release may contain forward-looking statements regarding the financial performance, business prospects, growth and operating strategies of Civista.  For these statements, Civista claims the protections of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.   Statements in this press release should be considered in conjunction with the other information available about Civista, including the information in the filings we make with the Securities and Exchange Commission.  Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance.  The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties.  We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements.  Risks and uncertainties that could cause actual results to differ materially include risk factors relating to the banking industry and the other factors detailed from time to time in Civista’ reports filed with the Securities and Exchange Commission, including those described in “Item 1A Risk Factors” of Part I of Civista’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019.  Undue reliance should not be placed on the forward-looking statements, which speak only as of the date hereof.  Civista does not undertake, and specifically disclaims any obligation, to update any forward-looking statement to reflect the events or circumstances after the date on which the forward-looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.

Civista Bancshares, Inc. is a $2.6 billion financial holding company headquartered in Sandusky, Ohio.  The Company’s banking subsidiary, Civista Bank, operates 37 locations in Northern, Central and Southwestern OhioSoutheastern Indiana and Northern Kentucky.  Civista Bancshares, Inc. may be accessed at www.civb.com.  The Company’s common shares are traded on the NASDAQ Capital Market under the symbol “CIVB”. 

Civista Bancshares, Inc.
Financial Highlights
(dollars in thousands, except share and per share amounts)

 

Consolidated Condensed Statement of Operations

         
 

Three Months Ended

 
 

March 31,

 
 

(unaudited)

 
 

2020

 

2019

 
         

Interest and dividend income

$        25,002

 

$        24,584

 

Interest expense

2,887

 

2,865

 

Net interest income

22,115

 

21,719

 

Provision for loan losses

2,126

 

 

Net interest income after provision

19,989

 

21,719

 

Noninterest income

6,876

 

6,284

 

Noninterest expense

17,856

 

16,449

 

Income before taxes

9,009

 

11,554

 

Income tax expense

1,176

 

1,885

 

Net income 

7,833

 

9,669

 

Preferred stock dividends 

 

164

 

Net income  available 

       

to common shareholders

$          7,833

 

$          9,505

 
         

Dividends per common share

$            0.11

 

$            0.09

 
         

Earnings per common share,

       

basic

$            0.47

 

$            0.61

 

diluted

$            0.47

 

$            0.57

 
         

Average shares outstanding,

       

basic

16,517,745

 

15,607,655

 

diluted

16,517,745

 

16,901,830

 
         

Selected financial ratios:

       

Return on average assets

1.22%

 

1.72%

 

Return on average equity

9.47%

 

13.00%

 

Dividend payout ratio

23.20%

 

14.53%

 

Net interest margin (tax equivalent)

4.10%

 

4.45%

 

 Selected Balance Sheet Items 

       
 

 March 31, 

 

 December 31, 

 

2020

 

2019

       
 

 (unaudited) 

 

 (unaudited) 

 Cash and due from financial institutions 

$              256,023

 

$                48,535

 Investment securities 

366,689

 

359,690

 Loans held for sale 

7,632

 

2,285

 Loans 

1,743,125

 

1,708,970

 Less allowance for loan losses 

16,948

 

14,767

 Net loans 

1,726,177

 

1,694,203

 Other securities 

20,280

 

20,280

 Premises and equipment, net 

22,443

 

22,871

 Goodwill and other intangibles 

84,919

 

85,156

 Bank owned life insurance 

45,249

 

44,999

 Other assets 

46,444

 

31,538

 Total assets 

$           2,575,856

 

$           2,309,557

       

 Total deposits 

$           1,991,939

 

$           1,678,764

 Federal Home Loan Bank advances 

142,000

 

226,500

 Securities sold under agreements to repurchase 

22,699

 

18,674

 Subordinated debentures 

29,427

 

29,427

 Accrued expenses and other liabilities 

61,624

 

26,066

 Total shareholders’ equity 

328,167

 

330,126

 Total liabilities and shareholders’ equity 

$           2,575,856

 

$           2,309,557

       

 Shares outstanding at period end 

16,064,010

 

16,687,542

       

 Book value per share 

$                  20.43

 

$                  19.78

 Equity to asset ratio 

12.74%

 

14.29%

       

Selected asset quality ratios:

     

Allowance for loan losses to total loans

0.97%

 

0.86%

Non-performing assets to total assets

0.33%

 

0.39%

Allowance for loan losses to non-performing loans

197.97%

 

161.95%

       

Non-performing asset analysis

     

Nonaccrual loans

$                  6,072

 

$                  6,115

Troubled debt restructurings

2,489

 

3,004

Other real estate owned

 

Total

$                  8,561

 

$                  9,119

Supplemental Financial Information

(Unaudited – Dollars in thousands except share data)

                   
 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

End of Period Balances

2020

 

2019

 

2019

 

2019

 

2019

                   

Assets

                 

Cash and due from banks

$     256,023

 

$       48,535

 

$       62,219

 

$       49,839

 

$     164,094

Investment securities

366,689

 

359,690

 

356,439

 

360,512

 

351,006

Loans held for sale

7,632

 

2,285

 

8,983

 

2,563

 

1,444

Loans

1,743,125

 

1,708,970

 

1,648,640

 

1,598,770

 

1,573,193

Allowance for loan losses

(16,948)

 

(14,767)

 

(14,144)

 

(13,786)

 

(13,822)

Net Loans

1,726,177

 

1,694,203

 

1,634,496

 

1,584,984

 

1,559,371

Other securities

20,280

 

20,280

 

20,280

 

20,280

 

20,280

Premises and equipment, net

22,443

 

22,871

 

22,201

 

21,720

 

21,772

Goodwill and other intangibles

84,919

 

85,156

 

85,461

 

85,706

 

85,955

Bank owned life insurance

45,249

 

44,999

 

44,745

 

44,491

 

44,239

Other assets

46,444

 

31,538

 

34,241

 

32,900

 

29,541

Total Assets

$  2,575,856

 

$  2,309,557

 

$  2,269,065

 

$  2,202,995

 

$  2,277,702

                   

Liabilities

                 

Total deposits

$  1,991,939

 

$  1,678,764

 

$  1,632,621

 

$  1,632,720

 

$  1,765,801

Federal Home Loan Bank advances

142,000

 

226,500

 

236,100

 

176,300

 

127,100

Securities sold under agreement to repurchase

22,699

 

18,674

 

15,088

 

15,554

 

21,970

Subordinated debentures

29,427

 

29,427

 

29,427

 

29,427

 

29,427

Accrued expenses and other liabilities

61,624

 

26,066

 

26,566

 

24,782

 

21,347

Total liabilities

2,247,689

 

1,979,431

 

1,939,802

 

1,878,783

 

1,965,645

                   

Shareholders’ Equity

                 

Preferred shares, Series B

 

 

9,158

 

9,364

 

9,364

Common shares

276,546

 

276,422

 

267,559

 

267,275

 

266,990

Retained earnings

73,972

 

67,974

 

62,023

 

56,199

 

49,421

Treasury shares

(32,239)

 

(21,144)

 

(21,144)

 

(17,235)

 

(17,235)

Accumulated other comprehensive income

9,888

 

6,874

 

11,667

 

8,609

 

3,517

Total shareholders’ equity

328,167

 

330,126

 

329,263

 

324,212

 

312,057

                   

Total Liabilities and Shareholders’ Equity

$  2,575,856

 

$  2,309,557

 

$  2,269,065

 

$  2,202,995

 

$  2,277,702

                   

Quarterly Average Balances

                 

Assets:

                 

Earning assets

$  2,232,168

 

$  2,070,175

 

$  2,021,780

 

$  1,986,841

 

$  2,017,523

Securities

385,187

 

372,639

 

379,525

 

373,999

 

365,219

Loans

1,725,685

 

1,676,769

 

1,626,010

 

1,583,533

 

1,564,208

Liabilities and Shareholders’ Equity

                 

Total deposits

$  1,975,133

 

$  1,661,452

 

$  1,622,527

 

$  1,670,247

 

$  1,807,102

Interest-bearing deposits

1,175,593

 

1,160,499

 

1,139,632

 

1,129,964

 

1,126,173

Other interest-bearing liabilities

209,909

 

252,908

 

246,235

 

186,140

 

148,891

Total shareholders’ equity

332,602

 

329,634

 

326,103

 

315,438

 

301,656

                   

Supplemental Financial Information

(Unaudited – Dollars in thousands except share data)

                   
 

Three Months Ended

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

Income statement

2020

 

2019

 

2019

 

2019

 

2019

                   

Total interest and dividend income

$         25,002

 

$         24,521

 

$         24,023

 

$         24,926

 

$         24,584

Total interest expense

2,887

 

3,299

 

3,605

 

3,184

 

2,865

Net interest income

22,115

 

21,222

 

20,418

 

21,742

 

21,719

Provision for loan losses

2,126

 

885

 

150

 

 

Noninterest income

6,876

 

5,627

 

5,429

 

5,104

 

6,284

Noninterest expense

17,856

 

17,128

 

16,731

 

16,639

 

16,449

Income before taxes

9,009

 

8,836

 

8,966

 

10,207

 

11,554

Income tax expense

1,176

 

995

 

1,258

 

1,546

 

1,885

Net income

7,833

 

7,841

 

7,708

 

8,661

 

9,669

Preferred stock dividends

 

157

 

162

 

164

 

164

Net income available to 

                 

common shareholders

$           7,833

 

$           7,684

 

$           7,546

 

$           8,497

 

$           9,505

                   

Common shares dividend paid

$           1,835

 

$           1,702

 

$           1,722

 

$           1,719

 

$           1,404

                   

Per share data

                 
                   

Basic earnings per common share

$             0.47

 

$             0.49

 

$             0.48

 

$             0.54

 

$             0.61

Diluted earnings per common share

0.47

 

0.47

 

0.46

 

0.51

 

0.57

Dividends per common share

0.11

 

0.11

 

0.11

 

0.11

 

0.09

Average common shares outstanding – basic

16,517,745

 

15,796,713

 

15,577,371

 

15,628,537

 

15,607,655

Average common shares outstanding – diluted

16,517,745

 

16,734,391

 

16,849,887

 

16,922,712

 

16,901,830

                   

Asset quality

                 

Allowance for loan losses, beginning of period

$         14,767

 

$         14,144

 

$         13,786

 

$         13,822

 

$         13,679

Charge-offs

(24)

 

(345)

 

(36)

 

(156)

 

(239)

Recoveries

79

 

83

 

244

 

120

 

382

Provision

2,126

 

885

 

150

 

 

Allowance for loan losses, end of period

$         16,948

 

$         14,767

 

$         14,144

 

$         13,786

 

$         13,822

                   

Ratios

                 

Allowance to total loans

0.97%

 

0.86%

 

0.86%

 

0.86%

 

0.88%

Allowance to nonperforming assets

197.97%

 

161.95%

 

149.91%

 

164.69%

 

150.60%

Allowance to nonperforming loans

197.97%

 

161.95%

 

149.91%

 

164.69%

 

150.60%

                   

Nonperforming assets

                 

Nonperforming loans

$           8,561

 

$           9,119

 

$           9,435

 

$           8,371

 

$           9,178

Other real estate owned

 

 

 

 

Total nonperforming assets

$           8,561

 

$           9,119

 

$           9,435

 

$           8,371

 

$           9,178

                   

Capital and liquidity

                 

Tier 1 leverage ratio

10.66%

 

12.35%

 

12.37%

 

12.44%

 

11.64%

Tier 1 risk-based capital ratio

14.33%

 

15.26%

 

15.50%

 

15.94%

 

15.64%

Total risk-based capital ratio

15.25%

 

16.10%

 

16.32%

 

16.78%

 

16.48%

Tangible common equity ratio (1)

9.82%

 

11.08%

 

10.81%

 

10.89%

 

9.96%

                   

(1) See reconciliation of non-GAAP measures at the end of this press release.

           

Reconciliation of Non-GAAP Financial Measures

(Unaudited – Dollars in thousands except share data)

                   
 

Three Months Ended

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

2020

 

2019

 

2019

 

2019

 

2019

                   

Tangible Common Equity

                 

Total Shareholder’s Equity – GAAP

$       328,167

 

$       330,126

 

$       329,263

 

$       324,212

 

$       312,057

Less: Preferred Equity

 

 

9,158

 

9,364

 

9,364

Less: Goodwill and intangible assets

83,363

 

83,595

 

83,829

 

84,064

 

84,299

Tangible common equity (Non-GAAP)

$       244,804

 

$       246,531

 

$       236,276

 

$       230,784

 

$       218,394

                   

Total Shares Outstanding

16,064,010

 

16,687,542

 

15,473,275

 

15,633,059

 

15,624,113

                   

Tangible book value per share

$           15.24

 

$           14.77

 

$           15.27

 

$           14.76

 

$           13.98

                   

Tangible Assets

                 

Total Assets – GAAP

$    2,575,856

 

$    2,309,557

 

$    2,269,065

 

$    2,202,995

 

$    2,277,702

Less: Goodwill and intangible assets

83,363

 

83,595

 

83,829

 

84,064

 

84,299

Tangible assets (Non-GAAP)

$    2,492,493

 

$    2,225,962

 

$    2,185,236

 

$    2,118,931

 

$    2,193,403

                   

Tangible common equity to tangible assets

9.82%

 

11.08%

 

10.81%

 

10.89%

 

9.96%

See Campaign: http://www.civb.com
Contact Information:
www.civb.com

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Contact Information:

www.civb.com