Civista Bancshares, Inc. Announces Fourth Quarter and Year-to-date 2023 Financial Results
Fourth quarter and year-to-date 2023 highlights:
- Net income of
$9.7 million , or$0.62 per diluted share, for the fourth quarter of 2023, compared to$12.1 million , or$0.77 per diluted share, for the fourth quarter of 2022. - Net income of
$43.0 million , or$2.73 per diluted share, compared to$39.4 million , or$2.60 per diluted share, for the twelve months endedDecember 31, 2023 and 2022, respectively. - Cost of deposits of 179 basis points and total funding costs of 219 basis points for the quarter.
- Based on the
December 29, 2023 market close share price of$18.44 , the$0.16 fourth quarter dividend is equivalent to an annualized yield of 3.47% and a dividend payout ratio of 25.81%.
"Overall, another solid quarter as we grew loans by
Results of Operations:
For the three-month periods ended
Net interest income decreased
Net interest margin decreased 57 basis points to 3.44% for the fourth quarter of 2023, compared to 4.01% for the same period a year ago.
The increase in interest income was due to increases in both yield and in asset volume. The 68 basis point increase in yield led to a
Interest expense increased
Average Balance Analysis |
|||||||
(Unaudited - Dollars in thousands) |
|||||||
|
|
|
|
|
|
|
|
|
Three Months Ended |
||||||
|
2023 |
|
2022 |
||||
|
Average |
|
Yield/ |
|
Average |
|
Yield/ |
Assets: |
balance |
Interest |
rate * |
|
balance |
Interest |
rate * |
Interest-earning assets: |
|
|
|
|
|
|
|
Loans and leases** |
$ 2,805,995 |
|
6.10 % |
|
$ 2,559,114 |
|
5.35 % |
Taxable securities *** |
352,186 |
2,901 |
2.85 % |
|
365,258 |
2,692 |
2.61 % |
Non-taxable securities *** |
275,046 |
2,365 |
3.79 % |
|
264,869 |
2,190 |
3.65 % |
Interest-bearing deposits in other banks |
16,117 |
161 |
3.96 % |
|
10,394 |
22 |
0.84 % |
Total interest-earning assets *** |
$ 3,449,344 |
|
5.52 % |
|
$ 3,199,635 |
39,399 |
4.84 % |
Noninterest-earning assets: |
|
|
|
|
|
|
|
Cash and due from financial institutions |
26,221 |
|
|
|
16,435 |
|
|
Premises and equipment, net |
58,576 |
|
|
|
64,952 |
|
|
Accrued interest receivable |
12,455 |
|
|
|
10,385 |
|
|
Intangible assets |
134,867 |
|
|
|
132,516 |
|
|
Bank owned life insurance |
55,441 |
|
|
|
53,378 |
|
|
Other assets |
67,544 |
|
|
|
67,557 |
|
|
Less allowance for loan losses |
(35,802) |
|
|
|
(28,025) |
|
|
Total Assets |
$ 3,768,646 |
|
|
|
$ 3,516,833 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity: |
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
Demand and savings |
$ 1,345,199 |
$ 2,873 |
0.85 % |
|
$ 1,449,412 |
$ 582 |
0.16 % |
Time |
817,961 |
10,532 |
5.11 % |
|
260,607 |
907 |
1.38 % |
Short-term FHLB borrowings |
276,949 |
3,877 |
5.55 % |
|
258,254 |
2,517 |
3.87 % |
Long-term FHLB borrowings |
2,458 |
14 |
2.26 % |
|
5,694 |
(5) |
-0.35 % |
Other borrowings |
543 |
8 |
5.85 % |
|
116,683 |
1,749 |
5.94 % |
Subordinated debentures |
103,927 |
1,243 |
4.75 % |
|
103,784 |
1,081 |
4.13 % |
Repurchase agreements |
- |
- |
0.00 % |
|
23,429 |
3 |
0.05 % |
Total interest-bearing liabilities |
$ 2,547,037 |
|
2.89 % |
|
$ 2,217,863 |
6,834 |
1.22 % |
Noninterest-bearing deposits |
814,642 |
|
|
|
939,736 |
|
|
Other liabilities |
69,101 |
|
|
|
59,725 |
|
|
Shareholders' equity |
337,866 |
|
|
|
299,509 |
|
|
Total Liabilities and Shareholders' Equity |
$ 3,768,646 |
|
|
|
$ 3,516,833 |
|
|
|
|
|
|
|
|
|
|
Net interest income and interest rate spread |
|
2.63 % |
|
|
|
3.61 % |
|
|
|
|
|
|
|
|
|
Net interest margin *** |
|
|
3.44 % |
|
|
|
4.01 % |
|
|
|
|
|
|
|
|
* - Average yields are presented on a tax equivalent basis. The tax equivalent effect associated with loans and investments, included in the yields above, was |
|||||||
|
|
|
|
|
|
|
|
** - Average balance includes nonaccrual loans |
|||||||
|
|
|
|
|
|
|
|
*** - Average yield on investments were calculated by adjusting the average balances of taxable and nontaxable securities by unrealized losses of |
For the twelve-month periods ended
Net interest income increased
Interest income increased
Interest expense increased
Net interest margin increased 5 basis points to 3.70% for the twelve months of 2023, compared to 3.65% for the same period a year ago.
Average Balance Analysis |
|||||||
(Unaudited - Dollars in thousands) |
|||||||
|
|
|
|
|
|
|
|
|
Twelve Months Ended |
||||||
|
2023 |
|
2022 |
||||
|
Average |
|
Yield/ |
|
Average |
|
Yield/ |
Assets: |
balance |
Interest |
rate * |
|
balance |
Interest |
rate * |
Interest-earning assets: |
|
|
|
|
|
|
|
Loans ** |
$ 2,722,797 |
|
5.90 % |
|
$ 2,286,928 |
|
4.72 % |
Taxable securities *** |
363,972 |
11,718 |
2.88 % |
|
341,600 |
9,123 |
2.49 % |
Non-taxable securities *** |
282,678 |
9,282 |
3.79 % |
|
263,981 |
7,859 |
3.56 % |
Interest-bearing deposits in other banks |
21,551 |
979 |
4.54 % |
|
146,849 |
1,120 |
0.76 % |
Total interest-earning assets *** |
$ 3,390,998 |
|
5.35 % |
|
$ 3,039,358 |
126,155 |
4.16 % |
Noninterest-earning assets: |
|
|
|
|
|
|
|
Cash and due from financial institutions |
39,219 |
|
|
|
84,777 |
|
|
Premises and equipment, net |
58,456 |
|
|
|
34,577 |
|
|
Accrued interest receivable |
11,499 |
|
|
|
8,650 |
|
|
Intangible assets |
133,626 |
|
|
|
96,492 |
|
|
Bank owned life insurance |
54,211 |
|
|
|
50,076 |
|
|
Other assets |
63,152 |
|
|
|
50,765 |
|
|
Less allowance for loan losses |
(33,814) |
|
|
|
(27,721) |
|
|
Total Assets |
$ 3,717,347 |
|
|
|
$ 3,336,974 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity: |
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
Demand and savings |
$ 1,356,789 |
$ 7,689 |
0.57 % |
|
$ 1,423,134 |
$ 1,442 |
0.10 % |
Time |
578,243 |
26,066 |
4.51 % |
|
253,399 |
2,398 |
0.95 % |
Short-term FHLB borrowings |
280,887 |
14,493 |
5.16 % |
|
66,875 |
2,566 |
3.84 % |
Long-term FHLB borrowings |
2,909 |
66 |
2.27 % |
|
45,325 |
510 |
1.13 % |
Other borrowings |
74,269 |
4,071 |
5.50 % |
|
91,985 |
5,243 |
5.70 % |
Subordinated debentures |
103,873 |
4,849 |
4.67 % |
|
103,741 |
3,781 |
8.37 % |
Repurchase agreements |
8,685 |
4 |
0.05 % |
|
22,293 |
11 |
0.05 % |
Total interest-bearing liabilities |
$ 2,405,655 |
$ 57,238 |
2.38 % |
|
$ 2,006,752 |
15,951 |
0.79 % |
Noninterest-bearing deposits |
917,005 |
|
|
|
937,890 |
|
|
Other liabilities |
50,963 |
|
|
|
76,189 |
|
|
Shareholders' equity |
343,724 |
|
|
|
316,143 |
|
|
Total Liabilities and Shareholders' Equity |
$ 3,717,347 |
|
|
|
$ 3,336,974 |
|
|
|
|
|
|
|
|
|
|
Net interest income and interest rate spread |
|
2.97 % |
|
|
|
3.37 % |
|
|
|
|
|
|
|
|
|
Net interest margin *** |
|
|
3.70 % |
|
|
|
3.65 % |
|
|
|
|
|
|
|
|
* - Average yields are presented on a tax equivalent basis. The tax equivalent effect associated with loans and investments, included in the yields above, was |
|||||||
|
|
|
|
|
|
|
|
** - Average balance includes nonaccrual loans |
|||||||
|
|
|
|
|
|
|
|
*** - 2023 and 2022 average yield on investments were calculated by adjusting the average balances of taxable and nontaxable securities by unrealized losses of |
Provision for credit losses for the fourth quarter of 2023 was
On
The adoption of CECL also resulted in an additional
For the fourth quarter of 2023, noninterest income totaled
Noninterest income |
|
|
|
|
|
|
|
(unaudited - dollars in thousands) |
Three months ended |
||||||
|
2023 |
|
2022 |
|
$ change |
|
% change |
Service charges |
$ 1,749 |
|
$ 2,070 |
|
$ (321) |
|
-15.5 % |
Net gain/(loss) on equity securities |
147 |
|
162 |
|
(15) |
|
-9.3 % |
Net gain on sale of loans and leases |
875 |
|
1,251 |
|
(376) |
|
-30.1 % |
ATM/Interchange fees |
1,654 |
|
1,509 |
|
145 |
|
9.6 % |
Wealth management fees |
1,197 |
|
1,189 |
|
8 |
|
0.7 % |
Lease revenue and residual income |
1,436 |
|
2,310 |
|
(874) |
|
-37.8 % |
Bank owned life insurance |
282 |
|
252 |
|
30 |
|
11.9 % |
Swap fees |
475 |
|
247 |
|
228 |
|
92.3 % |
Other |
1,008 |
|
1,074 |
|
(66) |
|
-6.1 % |
Total noninterest income |
$ 8,823 |
|
$ 10,064 |
|
$ (1,241) |
|
-12.3 % |
|
|
|
|
|
|
|
|
The decrease in service charge income of
The net gain on sale of loans and leases decreased by
Lease revenue and residual income contributed
Swap fees increased
For the twelve months ended
Noninterest income |
|
|
|
|
|
|
|
(unaudited - dollars in thousands) |
Twelve months ended |
||||||
|
2023 |
|
2022 |
|
$ change |
|
% change |
Service charges |
$ 7,206 |
|
$ 7,074 |
|
$ 132 |
|
1.9 % |
Net gain on sale of securities |
- |
|
10 |
|
(10) |
|
-100.0 % |
Net (loss) on equity securities |
(21) |
|
118 |
|
(139) |
|
-117.8 % |
Net gain on sale of loans and leases |
2,908 |
|
3,397 |
|
(489) |
|
-14.4 % |
ATM/Interchange fees |
5,880 |
|
5,499 |
|
381 |
|
6.9 % |
Wealth management fees |
4,767 |
|
4,902 |
|
(135) |
|
-2.8 % |
Lease revenue and residual income |
7,595 |
|
2,310 |
|
5,285 |
|
228.8 % |
Bank owned life insurance |
1,112 |
|
984 |
|
128 |
|
13.0 % |
Tax refund processing fees |
2,375 |
|
2,375 |
|
- |
|
0.0 % |
Swap fees |
673 |
|
247 |
|
426 |
|
172.5 % |
Other |
4,668 |
|
2,160 |
|
2,508 |
|
116.1 % |
Total noninterest income |
$ 37,163 |
|
$ 29,076 |
|
$ 8,087 |
|
27.8 % |
|
|
|
|
|
|
|
|
The net gain on sale of loans and leases decreased by
Lease revenue and residual income increased
Swap fees increased
Other income increased as result of a
For the fourth quarter of 2023, noninterest expense totaled
Noninterest expense |
|
|
|
|
|
|
|
(unaudited - dollars in thousands) |
Three months ended |
||||||
|
2023 |
|
2022 |
|
$ change |
|
% change |
Compensation expense |
$ 14,154 |
|
$ 14,407 |
|
$ (253) |
|
-1.8 % |
Net occupancy and equipment |
4,170 |
|
4,649 |
|
(479) |
|
-10.3 % |
Contracted data processing |
512 |
|
889 |
|
(377) |
|
-42.4 % |
Taxes and assessments |
679 |
|
356 |
|
323 |
|
90.7 % |
Professional services |
1,148 |
|
1,795 |
|
(647) |
|
-36.0 % |
Amortization of intangible assets |
384 |
|
406 |
|
(22) |
|
-5.4 % |
ATM/Interchange expense |
605 |
|
589 |
|
16 |
|
2.7 % |
Marketing |
(190) |
|
444 |
|
(634) |
|
-142.8 % |
Software maintenance expense |
1,178 |
|
993 |
|
185 |
|
18.6 % |
Other |
2,673 |
|
2,773 |
|
(100) |
|
-3.6 % |
Total noninterest expense |
$ 25,313 |
|
$ 27,301 |
|
$ (1,988) |
|
-7.3 % |
Compensation expense decreased primarily due to reduction in expense accruals related to incentives, success sharing and SERP.
The decrease in occupancy and equipment expense is primarily due to a
Taxes and assessments increased due to an increase in the
Professional services decreased during the fourth quarter of 2023 compared to 2022 due to
Marketing expense decreased
The efficiency ratio was 64.1% for the quarter ended
Civista's effective income tax rate for the fourth quarter 2023 was 14.1% compared to 16.7% in 2022.
For the twelve months ended
Noninterest expense |
|
|
|
|
|
|
|
(unaudited - dollars in thousands) |
Twelve months ended |
||||||
|
2023 |
|
2022 |
|
$ change |
|
% change |
Compensation expense |
$ 58,291 |
|
$ 51,061 |
|
$ 7,230 |
|
14.2 % |
Net occupancy and equipment |
16,480 |
|
9,771 |
|
6,709 |
|
68.7 % |
Contracted data processing |
2,242 |
|
2,788 |
|
(546) |
|
-19.6 % |
Taxes and assessments |
3,663 |
|
2,772 |
|
891 |
|
32.1 % |
Professional services |
4,952 |
|
5,388 |
|
(436) |
|
-8.1 % |
Amortization of intangible assets |
1,579 |
|
1,296 |
|
283 |
|
21.8 % |
ATM/Interchange expense |
2,420 |
|
2,248 |
|
172 |
|
7.7 % |
Marketing |
1,352 |
|
1,513 |
|
(161) |
|
-10.6 % |
Software maintenance expense |
4,167 |
|
3,433 |
|
734 |
|
21.4 % |
Other |
12,465 |
|
10,223 |
|
2,242 |
|
21.9 % |
Total noninterest expense |
$ 107,611 |
|
$ 90,493 |
|
$ 17,118 |
|
18.9 % |
Compensation expense increased primarily due to
The increase in occupancy and equipment expense is primarily due to a
Amortization of intangible assets increased
Software expense increased
The increase in other operating expense is primarily due to a
The efficiency ratio was 65.2% for the twelve months ended
Civista's effective income tax rate was 15.1% for the twelve months ended
Balance Sheet
Total assets increased
End of period loan and lease balances |
|
|
|
|
|
|
|
(unaudited - dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
2022 |
|
$ Change |
|
% Change |
Commercial and Agriculture |
$ 304,793 |
|
$ 278,595 |
|
$ 26,198 |
|
9.4 % |
|
|
|
|
|
|
|
|
Owner Occupied |
377,322 |
|
371,148 |
|
6,174 |
|
1.7 % |
Non-owner Occupied |
1,161,893 |
|
1,018,736 |
|
143,157 |
|
14.1 % |
|
659,841 |
|
552,781 |
|
107,060 |
|
19.4 % |
|
260,409 |
|
243,127 |
|
17,282 |
|
7.1 % |
|
24,771 |
|
24,708 |
|
63 |
|
0.3 % |
Lease financing receivable |
54,642 |
|
36,797 |
|
17,845 |
|
48.5 % |
Consumer and Other |
18,056 |
|
20,774 |
|
(2,718) |
|
-13.1 % |
Loan participations sold, reflected |
- |
|
101,615 |
|
(101,615) |
|
-100.0 % |
Total Loans |
$ 2,861,727 |
|
$ 2,648,281 |
|
$ 213,446 |
|
8.1 % |
Loan and lease balances increased
Deposits
Total deposits increased
End of period deposit balances |
|
|
|
|
|
|
|
(unaudited - dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
2022 |
|
$ Change |
|
% Change |
Noninterest-bearing demand |
$ 771,699 |
|
$ 896,333 |
|
$ (124,634) |
|
-13.9 % |
Interest-bearing demand |
449,449 |
|
527,879 |
|
(78,430) |
|
-14.9 % |
Savings and money market |
863,067 |
|
876,427 |
|
(13,360) |
|
-1.5 % |
Time deposits |
900,813 |
|
319,345 |
|
581,468 |
|
182.1 % |
Total Deposits |
$ 2,985,028 |
|
$ 2,619,984 |
|
$ 365,044 |
|
13.9 % |
The decrease in noninterest-bearing demand of
FHLB overnight advances totaled
Stock Repurchase Program
During the twelve months of 2023, Civista repurchased 84,230 shares for
Shareholders' Equity
Total shareholders' equity increased
Asset Quality
Civista recorded net losses of
Allowance for Credit Losses |
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
Twelve months ended |
||
|
2023 |
|
2022 |
Beginning of period |
$ 28,511 |
|
$ 26,641 |
CECL adoption adjustments |
5,193 |
|
- |
Charge-offs |
(1,431) |
|
(222) |
Recoveries |
452 |
|
340 |
Provision |
4,435 |
|
1,752 |
End of period |
$ 37,160 |
|
$ 28,511 |
Allowance for Unfunded Commitments |
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
Twelve months ended |
||
|
2023 |
|
2022 |
Beginning of period |
$ - |
|
$ - |
CECL adoption adjustments |
3,386 |
|
|
Charge-offs |
- |
|
- |
Recoveries |
- |
|
- |
Provision |
515 |
|
- |
End of period |
$ 3,901 |
|
$ - |
Non-performing assets at
Non-performing Assets |
|
|
|
(dollars in thousands) |
|
|
|
|
2023 |
|
2022 |
Non-accrual loans |
$ 12,467 |
|
$ 7,890 |
Restructured loans |
2,659 |
|
3,015 |
Total non-performing loans |
15,126 |
|
10,905 |
Other Real Estate Owned |
- |
|
- |
Total non-performing assets |
$ 15,126 |
|
$ 10,905 |
Conference Call and Webcast
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
Civista Bancshares, Inc. |
|||||||
Financial Highlights |
|||||||
(Unaudited, dollars in thousands, except share and per share amounts) |
|||||||
|
|||||||
Consolidated Condensed Statement of Income |
|||||||
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
||||
|
|
|
|
||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
Interest income |
$ 48,599 |
|
$ 39,399 |
|
$ 182,734 |
|
$ 126,155 |
Interest expense |
18,547 |
|
6,834 |
|
57,238 |
|
15,951 |
Net interest income |
30,052 |
|
32,565 |
|
125,496 |
|
110,204 |
Provision for credit losses |
2,325 |
|
752 |
|
4,435 |
|
1,752 |
Net interest income after provision |
27,727 |
|
31,813 |
|
121,061 |
|
108,452 |
Noninterest income |
8,823 |
|
10,064 |
|
37,163 |
|
29,076 |
Noninterest expense |
25,313 |
|
27,301 |
|
107,611 |
|
90,493 |
Income before taxes |
11,237 |
|
14,576 |
|
50,613 |
|
47,035 |
Income tax expense |
1,582 |
|
2,428 |
|
7,649 |
|
7,608 |
Net income |
9,655 |
|
12,148 |
|
42,964 |
|
39,427 |
|
|
|
|
|
|
|
|
Dividends paid per common share |
$ 0.16 |
|
$ 0.14 |
|
$ 0.61 |
|
$ 0.56 |
|
|
|
|
|
|
|
|
Earnings per common share |
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
|
Net income |
$ 9,655 |
|
$ 12,148 |
|
$ 42,964 |
|
$ 39,427 |
Less allocation of earnings and |
|
|
|
|
|
|
|
dividends to participating securities |
362 |
|
54 |
|
1,585 |
|
177 |
Net income available to common |
|
|
|
|
|
|
|
shareholders - basic |
$ 9,293 |
|
$ 12,094 |
|
$ 41,379 |
|
$ 39,250 |
Weighted average common shares outstanding |
15,695,978 |
|
15,717,439 |
|
15,734,624 |
|
15,162,033 |
Less average participating securities |
588,625 |
|
70,179 |
|
579,857 |
|
68,043 |
Weighted average number of shares outstanding |
|
|
|
|
|
|
|
used to calculate basic earnings per share |
15,107,353 |
|
15,647,260 |
|
15,154,767 |
|
15,093,990 |
|
|
|
|
|
|
|
|
Earnings per common share |
|
|
|
|
|
|
|
Basic |
$ 0.62 |
|
$ 0.77 |
|
$ 2.73 |
|
$ 2.60 |
Diluted |
0.62 |
|
0.77 |
|
2.73 |
|
2.60 |
|
|
|
|
|
|
|
|
Selected financial ratios: |
|
|
|
|
|
|
|
Return on average assets |
1.02 % |
|
1.37 % |
|
1.16 % |
|
1.18 % |
Return on average equity |
11.34 % |
|
16.09 % |
|
12.50 % |
|
12.47 % |
Dividend payout ratio |
25.81 % |
|
18.11 % |
|
22.34 % |
|
21.54 % |
Net interest margin (tax equivalent) |
3.44 % |
|
4.01 % |
|
3.69 % |
|
3.65 % |
Selected Balance Sheet Items |
|||
(Dollars in thousands, except share and per share amounts) |
|||
|
|
|
|
|
December 31, |
|
December 31, |
|
2023 |
|
2022 |
|
(unaudited) |
|
(unaudited) |
|
|
|
|
Cash and due from financial institutions |
$ 60,406 |
|
$ 43,361 |
Investment in time deposits |
1,225 |
|
1,477 |
Investment securities |
620,441 |
|
617,592 |
Loans held for sale |
1,725 |
|
683 |
Loans |
2,861,728 |
|
2,648,281 |
Less: allowance for credit losses |
(37,160) |
|
(28,511) |
Net loans |
2,824,568 |
|
2,619,770 |
Other securities |
29,998 |
|
33,585 |
Premises and equipment, net |
56,769 |
|
64,018 |
Goodwill and other intangibles |
135,028 |
|
136,454 |
Bank owned life insurance |
61,335 |
|
53,543 |
Other assets |
69,923 |
|
68,962 |
Total assets |
$ 3,861,418 |
|
$ 3,639,445 |
|
|
|
|
Total deposits |
$ 2,985,028 |
|
$ 2,619,984 |
Federal Home Loan Bank advances - short term |
338,000 |
|
393,700 |
Federal Home Loan Bank advances - long term |
2,392 |
|
3,578 |
Securities sold under agreements to repurchase |
- |
|
25,143 |
Subordinated debentures |
103,943 |
|
103,799 |
Other borrowings |
9,859 |
|
15,516 |
Secured borrowings |
- |
|
101,615 |
Securities purchased payable |
- |
|
1,338 |
Tax refunds in process |
2,885 |
|
278 |
Accrued expenses and other liabilities |
47,309 |
|
39,658 |
Total shareholders' equity |
372,002 |
|
334,836 |
Total liabilities and shareholders' equity |
$ 3,861,418 |
|
$ 3,639,445 |
|
|
|
|
Shares outstanding at period end |
15,695,424 |
|
15,728,234 |
|
|
|
|
Book value per share |
$ 23.70 |
|
$ 21.29 |
Equity to asset ratio |
9.63 % |
|
9.20 % |
|
|
|
|
Selected asset quality ratios: |
|
|
|
Allowance for loan losses to total loans |
1.30 % |
|
1.08 % |
Non-performing assets to total assets |
0.39 % |
|
0.30 % |
Allowance for loan losses to non-performing loans |
245.67 % |
|
261.45 % |
|
|
|
|
Non-performing asset analysis |
|
|
|
Nonaccrual loans |
$ 12,467 |
|
$ 7,890 |
Restructured loans |
2,659 |
|
3,015 |
Other real estate owned |
- |
|
- |
Total |
$ 15,126 |
|
$ 10,905 |
Supplemental Financial Information |
|||||||||
(Unaudited - dollars in thousands except share data) |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of Period Balances |
2023 |
|
2023 |
|
2023 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ 60,406 |
|
$ 50,316 |
|
$ 41,354 |
|
$ 52,723 |
|
$ 43,361 |
Investment in time deposits |
1,225 |
|
1,472 |
|
1,719 |
|
1,721 |
|
1,477 |
Investment securities |
620,441 |
|
595,508 |
|
619,250 |
|
629,829 |
|
617,592 |
Loans held for sale |
1,725 |
|
1,589 |
|
3,014 |
|
1,465 |
|
683 |
Loans and leases |
2,861,728 |
|
2,759,771 |
|
2,728,390 |
|
2,681,180 |
|
2,648,281 |
Allowance for credit losses |
(37,160) |
|
(35,280) |
|
(35,149) |
|
(34,196) |
|
(28,511) |
Net Loans |
2,824,568 |
|
2,724,491 |
|
2,693,241 |
|
2,646,984 |
|
2,619,770 |
Other securities |
29,998 |
|
34,224 |
|
28,449 |
|
35,383 |
|
33,585 |
Premises and equipment, net |
56,769 |
|
58,989 |
|
60,899 |
|
61,895 |
|
64,018 |
|
125,520 |
|
134,998 |
|
135,406 |
|
135,808 |
|
136,454 |
Bank owned life insurance |
61,335 |
|
54,053 |
|
53,787 |
|
53,796 |
|
53,543 |
Other assets |
79,431 |
|
82,157 |
|
70,971 |
|
66,068 |
|
68,962 |
Total Assets |
$ 3,861,418 |
|
$ 3,737,797 |
|
$ 3,708,090 |
|
$ 3,685,672 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
Total deposits |
$ 2,985,028 |
|
$ 2,795,743 |
|
$ 2,942,774 |
|
$ 2,843,516 |
|
|
|
338,000 |
|
431,500 |
|
142,000 |
|
212,000 |
|
393,700 |
|
2,392 |
|
2,573 |
|
2,859 |
|
3,361 |
|
3,578 |
Securities sold under agreement to repurchase |
- |
|
- |
|
6,788 |
|
15,631 |
|
25,143 |
Subordinated debentures |
103,943 |
|
103,921 |
|
103,880 |
|
103,841 |
|
103,799 |
Other borrowings |
9,859 |
|
10,964 |
|
12,568 |
|
13,938 |
|
15,516 |
Secured borrowings |
- |
|
4,881 |
|
92,110 |
|
101,114 |
|
101,615 |
Securities purchased payable |
- |
|
1,755 |
|
- |
|
- |
|
1,338 |
Tax refunds in process |
2,885 |
|
493 |
|
7,208 |
|
5,752 |
|
278 |
Accrued expenses and other liabilities |
47,309 |
|
53,222 |
|
48,027 |
|
38,822 |
|
39,658 |
Total liabilities |
3,489,416 |
|
3,405,052 |
|
3,358,214 |
|
3,337,975 |
|
3,304,609 |
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Common shares |
311,166 |
|
310,975 |
|
310,784 |
|
310,412 |
|
310,182 |
Retained earnings |
183,788 |
|
176,644 |
|
168,777 |
|
161,110 |
|
156,493 |
|
(75,422) |
|
(75,412) |
|
(73,915) |
|
(73,915) |
|
(73,794) |
Accumulated other comprehensive loss |
(47,530) |
|
(79,462) |
|
(55,770) |
|
(49,910) |
|
(58,045) |
Total shareholders' equity |
372,002 |
|
332,745 |
|
349,876 |
|
347,697 |
|
334,836 |
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Shareholders' Equity |
$ 3,861,418 |
|
$ 3,737,797 |
|
$ 3,708,090 |
|
$ 3,685,672 |
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly Average Balances |
|
|
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
|
|
Earning assets |
$ 3,449,344 |
|
$ 3,443,226 |
|
$ 3,354,967 |
|
$ 3,313,285 |
|
|
Securities |
645,202 |
|
645,202 |
|
658,515 |
|
655,987 |
|
630,127 |
Loans |
2,805,995 |
|
2,742,736 |
|
2,689,515 |
|
2,649,901 |
|
2,559,114 |
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Total deposits |
$ 2,977,802 |
|
$ 2,946,849 |
|
$ 2,817,712 |
|
$ 2,654,356 |
|
|
Interest-bearing deposits |
$ 2,163,160 |
|
1,966,014 |
|
1,912,955 |
|
1,692,470 |
|
1,710,019 |
Other interest-bearing liabilities |
383,877 |
|
178,614 |
|
471,837 |
|
616,505 |
|
507,844 |
Total shareholders' equity |
337,866 |
|
348,209 |
|
347,647 |
|
341,159 |
|
299,509 |
Supplemental Financial Information |
|||||||||
(Unaudited - dollars in thousands except share data) |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
||||||||
|
|
|
|
|
|
|
|
|
|
Income statement |
2023 |
|
2023 |
|
2023 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
|
Total interest and dividend income |
$ 48,599 |
|
$ 46,601 |
|
$ 44,609 |
|
$ 42,925 |
|
$ 39,399 |
Total interest expense |
18,547 |
|
15,097 |
|
13,270 |
|
10,324 |
|
6,834 |
Net interest income |
30,052 |
|
31,504 |
|
31,339 |
|
32,601 |
|
32,565 |
Provision for loan losses |
2,325 |
|
630 |
|
861 |
|
620 |
|
752 |
Noninterest income |
8,823 |
|
8,125 |
|
9,149 |
|
11,068 |
|
10,064 |
Noninterest expense |
25,313 |
|
26,752 |
|
27,913 |
|
27,633 |
|
27,301 |
Income before taxes |
11,237 |
|
12,247 |
|
11,714 |
|
15,416 |
|
14,576 |
Income tax expense |
1,582 |
|
1,860 |
|
1,680 |
|
2,528 |
|
2,428 |
Net income |
$ 9,655 |
|
$ 10,387 |
|
$ 10,034 |
|
$ 12,888 |
|
$ 12,148 |
|
|
|
|
|
|
|
|
|
|
Per share data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share |
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
|
|
|
Net income |
$ 9,655 |
|
$ 10,387 |
|
$ 10,034 |
|
$ 12,888 |
|
$ 12,148 |
Less allocation of earnings and |
|
|
|
|
|
|
|
|
|
dividends to participating securities |
362 |
|
389 |
|
374 |
|
453 |
|
432 |
Net income available to common |
|
|
|
|
|
|
|
|
|
shareholders - basic |
$ 9,293 |
|
$ 9,998 |
|
$ 9,660 |
|
$ 12,435 |
|
$ 11,716 |
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding |
15,695,978 |
|
15,735,007 |
|
15,775,812 |
|
15,732,092 |
|
15,717,439 |
Less average participating securities |
588,625 |
|
588,715 |
|
588,715 |
|
552,882 |
|
559,596 |
Weighted average number of shares outstanding |
|
|
|
|
|
|
|
|
|
used to calculate basic earnings per share |
15,107,353 |
|
15,146,292 |
|
15,187,097 |
|
15,179,210 |
|
15,157,843 |
|
|
|
|
|
|
|
|
|
|
Earnings per common share |
|
|
|
|
|
|
|
|
|
Basic |
$ 0.62 |
|
$ 0.66 |
|
$ 0.64 |
|
$ 0.82 |
|
$ 0.77 |
Diluted |
0.62 |
|
0.66 |
|
0.64 |
|
0.82 |
|
0.77 |
|
|
|
|
|
|
|
|
|
|
Common shares dividend paid |
$ 2,511 |
|
$ 2,521 |
|
$ 2,367 |
|
$ 2,201 |
|
$ 2,202 |
|
|
|
|
|
|
|
|
|
|
Dividends paid per common share |
0.16 |
|
0.16 |
|
0.15 |
|
0.14 |
|
0.14 |
Supplemental Financial Information |
|||||||||
(Unaudited - dollars in thousands except share data) |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
||||||||
|
|
|
|
|
|
|
|
|
|
Asset quality |
2023 |
|
2023 |
|
2023 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses: |
|
|
|
|
|
|
|
|
|
Beginning of period |
$ 35,280 |
|
$ 35,251 |
|
$ 34,196 |
|
$ 28,511 |
|
$ 27,773 |
CECL adoption adjustments |
- |
|
- |
|
- |
|
5,193 |
|
- |
Charge-offs |
(577) |
|
(666) |
|
(14) |
|
(175) |
|
(58) |
Recoveries |
132 |
|
65 |
|
208 |
|
47 |
|
44 |
Provision |
2,325 |
|
630 |
|
861 |
|
620 |
|
752 |
End of period |
$ 37,160 |
|
$ 35,280 |
|
$ 35,251 |
|
$ 34,196 |
|
$ 28,511 |
|
|
|
|
|
|
|
|
|
|
Allowance for unfunded commitments: |
|
|
|
|
|
|
|
|
|
Beginning of period |
$ 3,981 |
|
$ 3,851 |
|
$ 3,587 |
|
$ - |
|
$ - |
CECL adoption adjustments |
- |
|
- |
|
- |
|
3,386 |
|
- |
Charge-offs |
- |
|
- |
|
- |
|
- |
|
- |
Recoveries |
- |
|
- |
|
- |
|
- |
|
- |
Provision |
(80) |
|
130 |
|
264 |
|
201 |
|
- |
End of period |
$ 3,901 |
|
$ 3,981 |
|
$ 3,851 |
|
$ 3,587 |
|
$ - |
|
|
|
|
|
|
|
|
|
|
Ratios |
|
|
|
|
|
|
|
|
|
Allowance to total loans |
1.30 % |
|
1.28 % |
|
1.29 % |
|
1.28 % |
|
1.08 % |
Allowance to nonperforming assets |
245.66 % |
|
308.52 % |
|
327.05 % |
|
345.91 % |
|
261.45 % |
Allowance to nonperforming loans |
245.66 % |
|
308.52 % |
|
327.05 % |
|
345.82 % |
|
261.45 % |
|
|
|
|
|
|
|
|
|
|
Nonperforming assets |
|
|
|
|
|
|
|
|
|
Nonperforming loans |
$ 15,126 |
|
$ 11,435 |
|
$ 10,747 |
|
$ 9,860 |
|
$ 10,905 |
Other real estate owned |
- |
|
- |
|
- |
|
26 |
|
- |
Total nonperforming assets |
$ 15,126 |
|
$ 11,435 |
|
$ 10,747 |
|
$ 9,886 |
|
$ 10,905 |
|
|
|
|
|
|
|
|
|
|
Capital and liquidity |
|
|
|
|
|
|
|
|
|
Tier 1 leverage ratio |
8.75 % |
|
8.73 % |
|
8.69 % |
|
8.42 % |
|
8.69 % |
Tier 1 risk-based capital ratio |
10.72 % |
|
10.82 % |
|
10.71 % |
|
10.50 % |
|
10.43 % |
Total risk-based capital ratio |
14.45 % |
|
14.60 % |
|
14.49 % |
|
14.31 % |
|
14.05 % |
Tangible common equity ratio (1) |
6.36 % |
|
5.49 % |
|
6.00 % |
|
5.96 % |
|
5.66 % |
|
|
|
|
|
|
|
|
|
|
(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 |
||||||||
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
2023 |
|
2023 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
|
Tangible Common Equity |
|
|
|
|
|
|
|
|
|
Total Shareholder's Equity - GAAP |
$ 372,012 |
|
$ 332,745 |
|
$ 349,876 |
|
$ 347,697 |
|
$ 334,835 |
Less: |
135,028 |
|
134,998 |
|
135,406 |
|
135,808 |
|
136,454 |
Tangible common equity (Non-GAAP) |
$ 236,984 |
|
$ 197,747 |
|
$ 214,470 |
|
$ 211,889 |
|
$ 198,381 |
|
|
|
|
|
|
|
|
|
|
Total Shares Outstanding |
15,695,424 |
|
15,695,997 |
|
15,780,227 |
|
15,732,092 |
|
15,728,234 |
|
|
|
|
|
|
|
|
|
|
Tangible book value per share |
$ 15.10 |
|
$ 12.60 |
|
$ 13.59 |
|
$ 13.47 |
|
$ 12.61 |
|
|
|
|
|
|
|
|
|
|
Tangible Assets |
|
|
|
|
|
|
|
|
|
Total Assets - GAAP |
$ 3,861,418 |
|
$ 3,737,797 |
|
$ 3,708,090 |
|
$ 3,688,232 |
|
$ 3,639,445 |
Less: |
135,028 |
|
134,998 |
|
135,406 |
|
135,808 |
|
136,454 |
Tangible assets (Non-GAAP) |
$ 3,726,390 |
|
$ 3,602,799 |
|
$ 3,572,684 |
|
$ 3,552,424 |
|
$ 3,502,991 |
|
|
|
|
|
|
|
|
|
|
Tangible common equity to tangible assets |
6.36 % |
|
5.49 % |
|
6.00 % |
|
5.96 % |
|
5.66 % |
View original content to download multimedia:https://www.prnewswire.com/news-releases/civista-bancshares-inc-announces-fourth-quarter-and-year-to-date-2023-financial-results-302056905.html
SOURCE