Civista Bancshares, Inc. Announces Second Quarter 2024 Financial Results
Second quarter and year-to-date 2024 highlights:
- Earnings per diluted share (EPS) for the quarter were
$0.45 , higher by$0.04 , or 10%, than the prior quarter, and lower by$0.19 , or 30%, from the year-ago quarter. - Net income of
$7.1 million increased$0.7 million , or 11%, from the prior quarter and decreased$3.0 million , or 30%, compared to$10.0 million for the second quarter of 2023. - Cost of deposits of 210 basis points and total funding costs of 261 basis points for the quarter.
- Based on the
June 30, 2024 market close share price of$15.49 , the$0.16 second quarter dividend is equivalent to an annualized yield of 4.13% and a dividend payout ratio of 35.6%.
CEO Commentary:
"Our second quarter earnings report shows solid loan and revenue growth compared to the last quarter, even with the higher interest expense on deposits", said
"We kept our credit quality strong while funding new loans, especially in residential real estate and construction. This growth highlights our focus on expanding our lending to meet the rising demand for housing and construction financing. By offering customized loan solutions, we've been able to support the needs of our customers and communities.", Shaffer commented.
Results of Operations:
For the three-month periods ended
Net interest income decreased
Compared to the same period of 2023 net interest income decreased
The increase in interest income from the comparable prior year quarter was due to a 27-basis point increase in yield as well as a
The increase in interest expense from the comparable prior year quarter was due to the average rate paid on interest-bearing liabilities increasing 104 basis points as well as average interest-bearing liabilities increasing
Average Balance Analysis |
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(Unaudited - Dollars in thousands) |
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|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
||||||||||
|
2024 |
|
2023 |
||||||||
|
Average |
|
|
|
Yield/ |
|
Average |
|
|
|
Yield/ |
Assets: |
balance |
|
Interest |
|
rate * |
|
balance |
|
Interest |
|
rate * |
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
Loans ** |
$ 2,964,377 |
|
|
|
6.10 % |
|
$ 2,689,516 |
|
|
|
5.85 % |
Taxable securities *** |
351,497 |
|
3,070 |
|
3.11 % |
|
370,002 |
|
2,984 |
|
2.93 % |
Non-taxable securities *** |
288,128 |
|
2,372 |
|
3.87 % |
|
288,513 |
|
2,319 |
|
3.79 % |
Interest-bearing deposits in other banks |
15,807 |
|
205 |
|
5.22 % |
|
6,937 |
|
54 |
|
3.12 % |
Total interest-earning assets *** |
$ 3,619,809 |
|
|
|
5.58 % |
|
$ 3,354,968 |
|
|
|
5.31 % |
Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
Cash and due from financial institutions |
32,564 |
|
|
|
|
|
47,560 |
|
|
|
|
Premises and equipment, net |
53,654 |
|
|
|
|
|
61,220 |
|
|
|
|
Accrued interest receivable |
13,230 |
|
|
|
|
|
11,191 |
|
|
|
|
Intangible assets |
134,473 |
|
|
|
|
|
135,669 |
|
|
|
|
Bank owned life insurance |
61,871 |
|
|
|
|
|
53,878 |
|
|
|
|
Other assets |
65,818 |
|
|
|
|
|
60,253 |
|
|
|
|
Less allowance for loan losses |
(39,190) |
|
|
|
|
|
(34,668) |
|
|
|
|
Total Assets |
$ 3,942,229 |
|
|
|
|
|
$ 3,690,071 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Demand and savings |
$ 1,339,503 |
|
$ 3,054 |
|
0.92 % |
|
$ 1,364,648 |
|
$ 1,546 |
|
0.45 % |
Time |
926,831 |
|
12,451 |
|
5.40 % |
|
548,307 |
|
5,988 |
|
4.38 % |
Short-term FHLB borrowings |
440,670 |
|
6,078 |
|
5.55 % |
|
242,395 |
|
3,113 |
|
5.15 % |
Long-term FHLB borrowings |
2,031 |
|
12 |
|
2.38 % |
|
3,107 |
|
17 |
|
2.19 % |
Other borrowings |
- |
|
- |
|
0.00 % |
|
109,248 |
|
1,406 |
|
5.16 % |
Subordinated debentures |
103,999 |
|
1,247 |
|
4.83 % |
|
103,854 |
|
1,198 |
|
4.62 % |
Repurchase agreements |
- |
|
- |
|
0.00 % |
|
13,234 |
|
2 |
|
0.06 % |
Total interest-bearing liabilities |
$ 2,813,034 |
|
|
|
3.27 % |
|
$ 2,384,793 |
|
|
|
2.23 % |
Noninterest-bearing deposits |
703,046 |
|
|
|
|
|
904,757 |
|
|
|
|
Other liabilities |
60,365 |
|
|
|
|
|
52,874 |
|
|
|
|
Shareholders' equity |
365,784 |
|
|
|
|
|
347,647 |
|
|
|
|
Total Liabilities and Shareholders' Equity |
$ 3,942,229 |
|
|
|
|
|
$ 3,690,071 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and interest rate spread |
|
|
|
2.31 % |
|
|
|
|
|
3.08 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin *** |
|
|
|
|
3.09 % |
|
|
|
|
|
3.75 % |
|
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* - Average yields are presented on a tax equivalent basis. The tax equivalent effect associated with loans and investments, included in the yields above, was |
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** - Average balance includes nonaccrual loans |
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*** - Average yield on investments were calculated by adjusting the average balances of taxable and nontaxable securities by unrealized losses of |
For the six-month periods ended
Net interest income decreased
Interest income increased
Interest expense increased
Average Balance Analysis |
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(Unaudited - Dollars in thousands) |
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|
Six Months Ended |
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|
2024 |
|
2023 |
||||||||
|
Average |
|
|
|
Yield/ |
|
Average |
|
|
|
Yield/ |
Assets: |
balance |
|
Interest |
|
rate * |
|
balance |
|
Interest |
|
rate * |
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
Loans ** |
$ 2,922,204 |
|
$ 89,431 |
|
6.15 % |
|
$ 2,669,830 |
|
|
|
5.82 % |
Taxable securities *** |
351,156 |
|
6,004 |
|
3.06 % |
|
372,413 |
|
5,818 |
|
2.85 % |
Non-taxable securities *** |
291,758 |
|
4,747 |
|
3.86 % |
|
284,845 |
|
4,581 |
|
3.80 % |
Interest-bearing deposits in other banks |
21,062 |
|
539 |
|
5.15 % |
|
7,166 |
|
99 |
|
2.79 % |
Total interest-earning assets *** |
$ 3,586,180 |
|
|
|
5.62 % |
|
$ 3,334,254 |
|
|
|
5.27 % |
Noninterest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
Cash and due from financial institutions |
31,123 |
|
|
|
|
|
44,584 |
|
|
|
|
Premises and equipment, net |
54,317 |
|
|
|
|
|
62,002 |
|
|
|
|
Accrued interest receivable |
12,977 |
|
|
|
|
|
10,924 |
|
|
|
|
Intangible assets |
134,672 |
|
|
|
|
|
135,625 |
|
|
|
|
Bank owned life insurance |
61,664 |
|
|
|
|
|
53,754 |
|
|
|
|
Other assets |
62,414 |
|
|
|
|
|
60,478 |
|
|
|
|
Less allowance for loan losses |
(38,273) |
|
|
|
|
|
(32,555) |
|
|
|
|
Total Assets |
$ 3,905,074 |
|
|
|
|
|
$ 3,669,066 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity: |
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Demand and savings |
$ 1,361,364 |
|
$ 7,039 |
|
1.04 % |
|
$ 1,374,305 |
|
$ 2,629 |
|
0.39 % |
Time |
914,637 |
|
24,452 |
|
5.38 % |
|
429,016 |
|
8,137 |
|
3.82 % |
Short-term FHLB borrowings |
384,679 |
|
10,593 |
|
5.54 % |
|
306,952 |
|
7,370 |
|
4.84 % |
Long-term FHLB borrowings |
2,153 |
|
25 |
|
2.34 % |
|
3,274 |
|
37 |
|
2.28 % |
Other borrowings |
- |
|
- |
|
0.00 % |
|
112,728 |
|
3,050 |
|
5.46 % |
Subordinated debentures |
103,978 |
|
2,489 |
|
4.81 % |
|
103,834 |
|
2,367 |
|
4.60 % |
Repurchase agreements |
- |
|
- |
|
0.00 % |
|
17,008 |
|
4 |
|
0.05 % |
Total interest-bearing liabilities |
$ 2,766,811 |
|
$ 44,598 |
|
3.24 % |
|
$ 2,347,117 |
|
|
|
2.03 % |
Noninterest-bearing deposits |
707,806 |
|
|
|
|
|
926,929 |
|
|
|
|
Other liabilities |
62,331 |
|
|
|
|
|
50,599 |
|
|
|
|
Shareholders' equity |
368,126 |
|
|
|
|
|
344,421 |
|
|
|
|
Total Liabilities and Shareholders' Equity |
$ 3,905,074 |
|
|
|
|
|
$ 3,669,066 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income and interest rate spread |
|
$ 56,123 |
|
2.38 % |
|
|
|
|
|
3.24 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin *** |
|
|
|
|
3.16 % |
|
|
|
|
|
3.87 % |
|
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* - 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 |
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|
|||||||
*** - 2024 and 2023 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 second quarter of 2024 was
Year-to-date 2024 provision for credit losses was
The increases in provision during the second quarter and the first six months of 2024 over the comparable prior year periods were primarily attributable to funding loan growth, as well as a charge-off associated with a discrete fraud event in the second quarter of 2024.
The reserve ratio as of
For the second quarter of 2024, noninterest income totaled
Noninterest income |
|
|
|
|
|
|
|
(unaudited - dollars in thousands) |
Three months ended |
||||||
|
2024 |
|
2023 |
|
$ change |
|
% change |
Service charges |
$ 1,488 |
|
$ 1,831 |
|
$ (343) |
|
-18.7 % |
Net gain/(loss) on equity securities |
74 |
|
(170) |
|
244 |
|
143.5 % |
Net gain on sale of loans |
888 |
|
615 |
|
273 |
|
44.4 % |
ATM/Interchange fees |
1,416 |
|
1,450 |
|
(34) |
|
-2.3 % |
Wealth management fees |
1,337 |
|
1,180 |
|
157 |
|
13.3 % |
Lease revenue and residual income |
3,529 |
|
2,201 |
|
1,328 |
|
60.3 % |
Bank owned life insurance |
367 |
|
311 |
|
56 |
|
18.0 % |
Tax refund processing fees |
- |
# |
475 |
|
(475) |
|
-100.0 % |
Other |
1,444 |
|
1,256 |
|
188 |
|
15.0 % |
Total noninterest income |
|
|
$ 9,149 |
|
$ 1,394 |
|
15.2 % |
Service charges for the second quarter of 2024 decreased
Net gain/loss on equity securities was the result of a market valuation adjustment.
Lease revenue and residual income for the second quarter of 2024 increased
Tax refund processing fee income is now zero as we exited our relationship with a third-party processor that was in the tax refund processing business.
For the six months ended
Noninterest income |
|
|
|
|
|
|
|
(unaudited - dollars in thousands) |
Six months ended |
||||||
|
2024 |
|
2023 |
|
$ change |
|
% change |
Service charges |
$ 2,928 |
|
$ 3,604 |
|
$ (676) |
|
-18.8 % |
Net gain/(loss) on equity securities |
(67) |
|
(238) |
|
171 |
|
71.8 % |
Net gain on sale of loans |
1,751 |
|
1,246 |
|
505 |
|
40.5 % |
ATM/Interchange fees |
2,799 |
|
2,803 |
|
(4) |
|
-0.1 % |
Wealth management fees |
2,613 |
|
2,373 |
|
240 |
|
10.1 % |
Lease revenue and residual income |
5,203 |
|
4,247 |
|
956 |
|
22.5 % |
Bank owned life insurance |
717 |
|
564 |
|
153 |
|
27.1 % |
Tax refund processing fees |
- |
|
2,375 |
|
(2,375) |
|
-100.0 % |
Other |
3,103 |
|
3,243 |
|
(140) |
|
-4.3 % |
Total noninterest income |
|
|
|
|
$ (1,170) |
|
-5.8 % |
Service charges for the first six months of 2024 decreased
Net gain/loss on equity securities was the result of a market valuation adjustment.
Net gain on sale of loans for the first six months of 2024 increased primarily due to an increase in volume of loans sold.
Lease revenue and residual income for the first six months of 2024 increased
Tax refund processing fee income is now zero as we exited our relationship with a third-party processor that was in the tax refund processing business.
For the second quarter of 2024, noninterest expense totaled
Noninterest expense |
|
|
|
|
|
|
|
(unaudited - dollars in thousands) |
Three months ended |
||||||
|
2024 |
|
2023 |
|
$ change |
|
% change |
Compensation expense |
$ 15,740 |
|
$ 14,978 |
|
$ 762 |
|
5.1 % |
Net occupancy and equipment |
3,732 |
|
4,135 |
|
(403) |
|
-9.7 % |
Contracted data processing |
559 |
|
559 |
|
- |
|
0.0 % |
Taxes and assessments |
1,027 |
|
1,183 |
|
(156) |
|
-13.2 % |
Professional services |
1,249 |
|
1,239 |
|
10 |
|
0.8 % |
Amortization of intangible assets |
366 |
|
399 |
|
(33) |
|
-8.3 % |
ATM/Interchange expense |
632 |
|
615 |
|
17 |
|
2.8 % |
Marketing |
445 |
|
540 |
|
(95) |
|
-17.6 % |
Software maintenance expense |
1,176 |
|
1,059 |
|
117 |
|
11.0 % |
Other |
3,629 |
|
2,942 |
|
687 |
|
23.4 % |
Total noninterest expense |
$ 28,555 |
|
$ 27,649 |
|
$ 906 |
|
3.3 % |
Compensation expense for the second quarter of 2024 increased primarily due to annual merit increases, employee insurance and other payroll related expenses.
The decrease in occupancy and equipment expense for the second quarter of 2024 was primarily due to a decrease in equipment depreciation from leasing operations as operating leases mature.
The increase in software maintenance expense for the second quarter of 2024 was due to an increase in software maintenance contracts, including investments in digital banking.
Other expenses include expenses for the SBA, CDARS and ICS programs and additional ATM/Debit card losses.
The efficiency ratio was 72.6% for the quarter ended
For the six months ended
Noninterest expense |
|
|
|
|
|
|
|
(unaudited - dollars in thousands) |
Six months ended |
||||||
|
2024 |
|
2023 |
|
$ change |
|
% change |
Compensation expense |
$ 31,197 |
|
$ 30,083 |
|
$ 1,114 |
|
3.7 % |
Net occupancy and equipment |
7,635 |
|
8,255 |
|
(620) |
|
-7.5 % |
Contracted data processing |
1,104 |
|
1,079 |
|
25 |
|
2.3 % |
Taxes and assessments |
1,996 |
|
1,957 |
|
39 |
|
2.0 % |
Professional services |
2,398 |
|
2,794 |
|
(396) |
|
-14.2 % |
Amortization of intangible assets |
757 |
|
797 |
|
(40) |
|
-5.0 % |
ATM/Interchange expense |
1,257 |
|
1,195 |
|
62 |
|
5.2 % |
Marketing |
924 |
|
1,045 |
|
(121) |
|
-11.6 % |
Software maintenance expense |
2,365 |
|
1,937 |
|
428 |
|
22.1 % |
Other |
6,611 |
|
5,939 |
|
672 |
|
11.3 % |
Total noninterest expense |
$ 56,244 |
|
$ 55,081 |
|
$ 1,163 |
|
2.1 % |
Compensation expense for the first six months of 2024 increased primarily due to annual merit increases, employee insurance and other payroll related expenses. The year-to-date average full time equivalent (FTE) employees were 538 at
The decrease in occupancy and equipment expense for the first six months of 2024 was primarily due to a decrease in equipment depreciation from leasing operations as operating leases mature.
Professional services for the first six months of 2024 decreased primarily due to advisory fees in 2023 for the company's MasterCard contract of
The increase in software maintenance expense for the first six months of 2024 was due to an increase in software maintenance contracts, including on new software related to digital banking investments.
Other expenses include expenses for the SBA, CDARS and ICS programs and ATM/Debit card losses.
The efficiency ratio was 72.5% for the first six months ended
Income Taxes
Civista's effective income tax rate for the second quarter 2024 was 12.6% compared to 14.3% in 2023. The effective income tax rate for the six months ended
Balance Sheet
Total assets increased
Total assets increased
End of period loans and leases:
(unaudited - dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
2023 |
|
$ Change |
|
% Change |
Commercial and Agriculture |
$ 318,499 |
|
$ 304,793 |
|
$ 13,706 |
|
4.5 % |
|
|
|
|
|
|
|
|
Owner Occupied |
377,308 |
|
377,322 |
|
(14) |
|
0.0 % |
Non-owner Occupied |
1,213,341 |
|
1,161,893 |
|
51,448 |
|
4.4 % |
|
729,213 |
|
659,841 |
|
69,372 |
|
10.5 % |
|
283,446 |
|
260,409 |
|
23,037 |
|
8.8 % |
|
24,376 |
|
24,771 |
|
(395) |
|
-1.6 % |
Lease financing receivable |
53,461 |
|
54,642 |
|
(1,181) |
|
-2.2 % |
Consumer and Other |
15,352 |
|
18,056 |
|
(2,704) |
|
-15.0 % |
Total Loans |
$ 3,014,996 |
|
$ 2,861,727 |
|
$ 153,269 |
|
5.4 % |
Loan and lease balances increased
Deposits
Total deposits decreased
Total deposits increased
End of period deposit balances |
|
|
|
|
|
|
|
(unaudited - dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
2023 |
|
$ Change |
|
% Change |
Noninterest-bearing demand |
$ 691,203 |
|
$ 771,699 |
|
$ (80,496) |
|
-10.4 % |
Interest-bearing demand |
409,848 |
|
449,449 |
|
(39,601) |
|
-8.8 % |
Savings and money market |
940,312 |
|
863,067 |
|
77,245 |
|
9.0 % |
Time deposits |
936,254 |
|
900,813 |
|
35,441 |
|
3.9 % |
Total Deposits |
$ 2,977,617 |
|
$ 2,985,028 |
|
$ (7,411) |
|
-0.2 % |
The
The
The
The increase in time certificates from
FHLB overnight advances totaled
Stock Repurchase Program
On
Shareholders' Equity
Total shareholders' equity at
Total shareholders' equity at
Total shareholders' equity at
Asset Quality
Civista recorded net charge-offs of
Allowance for Credit Losses |
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
2024 |
|
2023 |
|
$ 37,160 |
|
$ 28,511 |
CECL adoption adjustments |
- |
|
5,193 |
Charge-offs |
(1,538) |
|
(189) |
Recoveries |
455 |
|
153 |
Provision |
3,842 |
|
1,481 |
End of period |
$ 39,919 |
|
$ 35,149 |
Allowance for Unfunded Commitments |
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
2024 |
|
2023 |
|
$ 3,901 |
|
$ - |
CECL adoption adjustments |
- |
|
3,386 |
Charge-offs |
- |
|
- |
Recoveries |
- |
|
- |
Provision |
(195) |
|
465 |
End of period |
$ 3,706 |
|
$ 3,851 |
Non-performing assets at
Non-performing Assets:
(dollars in thousands) |
|
|
|
|
2024 |
|
2023 |
Non-accrual loans |
$ 15,209 |
|
$ 12,467 |
Restructured loans |
1,889 |
|
2,659 |
Total non-performing loans |
17,098 |
|
15,126 |
Other Real Estate Owned |
- |
|
- |
Total non-performing assets |
$ 17,098 |
|
$ 15,126 |
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
Financial Highlights
(Unaudited, dollars in thousands, except share and per share amounts)
Consolidated Condensed Statement of Income |
|||||||
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
||||
|
|
|
|
||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
Interest income |
$ 50,593 |
|
$ 44,609 |
|
$ 100,721 |
|
$ 87,534 |
Interest expense |
22,842 |
|
13,270 |
|
44,598 |
|
23,594 |
Net interest income |
27,751 |
|
31,339 |
|
56,123 |
|
63,940 |
Provision for credit losses |
1,655 |
|
1,125 |
|
3,647 |
|
1,946 |
Net interest income after provision |
26,096 |
|
30,214 |
|
52,476 |
|
61,994 |
Noninterest income |
10,543 |
|
9,149 |
|
19,047 |
|
20,217 |
Noninterest expense |
28,555 |
|
27,649 |
|
56,244 |
|
55,081 |
Income before taxes |
8,084 |
|
11,714 |
|
15,279 |
|
27,130 |
Income tax expense |
1,020 |
|
1,680 |
|
1,855 |
|
4,208 |
Net income |
7,064 |
|
10,034 |
|
13,424 |
|
22,922 |
|
|
|
|
|
|
|
|
Dividends paid per common share |
$ 0.16 |
|
$ 0.15 |
|
$ 0.32 |
|
$ 0.29 |
|
|
|
|
|
|
|
|
Earnings per common share |
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
|
Net income |
$ 7,064 |
|
$ 10,034 |
|
$ 13,424 |
|
$ 22,922 |
Less allocation of earnings and |
|
|
|
|
|
|
|
dividends to participating securities |
266 |
|
374 |
|
492 |
|
831 |
Net income available to common |
|
|
|
|
|
|
|
shareholders - basic |
$ 6,798 |
|
$ 9,660 |
|
$ 12,932 |
|
$ 22,091 |
Weighted average common shares outstanding |
15,729,049 |
|
15,775,812 |
|
15,712,499 |
|
15,754,072 |
Less average participating securities |
591,712 |
|
588,715 |
|
576,528 |
|
570,897 |
Weighted average number of shares outstanding |
|
|
|
|
|
|
|
used to calculate basic earnings per share |
15,137,337 |
|
15,187,097 |
|
15,135,971 |
|
15,183,175 |
|
|
|
|
|
|
|
|
Earnings per common share |
|
|
|
|
|
|
|
Basic |
$ 0.45 |
|
$ 0.64 |
|
$ 0.85 |
|
$ 1.45 |
Diluted |
0.45 |
|
0.64 |
|
0.85 |
|
1.45 |
|
|
|
|
|
|
|
|
Selected financial ratios: |
|
|
|
|
|
|
|
Return on average assets |
0.72 % |
|
1.12 % |
|
0.69 % |
|
1.29 % |
Return on average equity |
7.77 % |
|
11.58 % |
|
7.33 % |
|
13.42 % |
Dividend payout ratio |
35.63 % |
|
23.58 % |
|
37.46 % |
|
19.93 % |
Net interest margin (tax equivalent) |
3.09 % |
|
3.75 % |
|
3.16 % |
|
3.87 % |
Effective income tax rate |
12.6 % |
|
14.3 % |
|
12.1 % |
|
15.5 % |
Selected Balance Sheet Items |
|||
(Dollars in thousands, except share and per share amounts) |
|||
|
|
|
|
|
June 30, |
|
December 31, |
|
2024 |
|
2023 |
|
(unaudited) |
|
(unaudited) |
|
|
|
|
Cash and due from financial institutions |
$ 55,760 |
|
$ 60,406 |
Investment in time deposits |
1,450 |
|
1,225 |
Investment securities |
611,866 |
|
620,441 |
Loans held for sale |
5,369 |
|
1,725 |
Loans |
3,014,996 |
|
2,861,728 |
Less: allowance for credit losses |
(39,919) |
|
(37,160) |
Net loans |
2,975,077 |
|
2,824,568 |
Other securities |
37,615 |
|
29,998 |
Premises and equipment, net |
52,142 |
|
56,769 |
Goodwill and other intangibles |
134,227 |
|
135,028 |
Bank owned life insurance |
63,367 |
|
61,335 |
Other assets |
75,041 |
|
69,923 |
Total assets |
$ 4,011,914 |
|
$ 3,861,418 |
|
|
|
|
Total deposits |
$ 2,977,616 |
|
$ 2,985,028 |
Federal Home Loan Bank advances - short term |
500,500 |
|
338,000 |
Federal Home Loan Bank advances - long term |
1,841 |
|
2,392 |
Subordinated debentures |
104,026 |
|
103,943 |
Other borrowings |
7,156 |
|
9,859 |
|
|
|
|
Securities purchased payable |
- |
|
- |
Tax refunds in process |
- |
|
2,885 |
Accrued expenses and other liabilities |
46,967 |
|
47,309 |
Total shareholders' equity |
373,808 |
|
372,002 |
Total liabilities and shareholders' equity |
$ 4,011,914 |
|
$ 3,861,418 |
|
|
|
|
Shares outstanding at period end |
15,737,222 |
|
15,695,424 |
|
|
|
|
Book value per share |
$ 23.75 |
|
$ 23.70 |
Equity to asset ratio |
9.32 % |
|
9.63 % |
|
|
|
|
Selected asset quality ratios: |
|
|
|
Allowance for credit losses to total loans |
1.32 % |
|
1.30 % |
Non-performing assets to total assets |
0.43 % |
|
0.39 % |
Allowance for credit losses to non-performing loans |
233.47 % |
|
245.67 % |
|
|
|
|
Non-performing asset analysis |
|
|
|
Nonaccrual loans |
$ 15,209 |
|
$ 12,467 |
Troubled debt restructurings |
1,889 |
|
2,659 |
Other real estate owned |
- |
|
- |
Total |
$ 17,098 |
|
$ 15,126 |
Supplemental Financial Information |
|||||||||
(Unaudited - dollars in thousands except share data) |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of Period Balances |
2024 |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ 55,760 |
|
$ 50,310 |
|
$ 60,406 |
|
$ 50,316 |
|
$ 41,354 |
Investment in time deposits |
1,450 |
|
1,450 |
|
1,225 |
|
1,472 |
|
1,719 |
Investment securities |
611,866 |
|
608,277 |
|
620,441 |
|
595,508 |
|
619,250 |
Loans held for sale |
5,369 |
|
3,716 |
|
1,725 |
|
1,589 |
|
3,014 |
Loans and leases |
3,014,996 |
|
2,898,139 |
|
2,861,728 |
|
2,759,771 |
|
2,728,390 |
Allowance for credit losses |
(39,919) |
|
(38,849) |
|
(37,160) |
|
(35,280) |
|
(35,149) |
Net Loans |
2,975,077 |
|
2,859,290 |
|
2,824,568 |
|
2,724,491 |
|
2,693,241 |
Other securities |
37,615 |
|
31,360 |
|
29,998 |
|
34,224 |
|
28,449 |
Premises and equipment, net |
52,142 |
|
54,280 |
|
56,769 |
|
58,989 |
|
60,899 |
|
134,227 |
|
134,618 |
|
135,028 |
|
134,998 |
|
135,406 |
Bank owned life insurance |
63,367 |
|
61,685 |
|
61,335 |
|
54,053 |
|
53,787 |
Other assets |
75,041 |
|
75,272 |
|
69,923 |
|
82,157 |
|
70,971 |
Total Assets |
$ 4,011,914 |
|
$ 3,880,258 |
|
$ 3,861,418 |
|
$ 3,737,797 |
|
$ 3,708,090 |
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
Total deposits |
$ 2,977,616 |
|
$ 2,980,695 |
|
$ 2,985,028 |
|
$ 2,795,743 |
|
$ 2,942,774 |
|
500,500 |
|
368,500 |
|
338,000 |
|
431,500 |
|
142,000 |
|
1,841 |
|
2,211 |
|
2,392 |
|
2,573 |
|
2,859 |
Securities sold under agreement to repurchase |
- |
|
- |
|
- |
|
- |
|
6,788 |
Subordinated debentures |
104,026 |
|
103,984 |
|
103,943 |
|
103,921 |
|
103,880 |
Other borrowings |
7,156 |
|
8,105 |
|
9,859 |
|
10,964 |
|
12,568 |
Secured borrowings |
- |
|
- |
|
- |
|
4,881 |
|
92,110 |
Securities purchased payable |
- |
|
- |
|
- |
|
1,755 |
|
- |
Tax refunds in process |
- |
|
- |
|
2,885 |
|
493 |
|
7,208 |
Accrued expenses and other liabilities |
46,967 |
|
47,104 |
|
47,309 |
|
53,222 |
|
48,027 |
Total liabilities |
3,638,106 |
|
3,510,599 |
|
3,489,416 |
|
3,405,052 |
|
3,358,214 |
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Common shares |
311,529 |
|
311,352 |
|
311,166 |
|
310,975 |
|
310,784 |
Retained earnings |
192,186 |
|
187,638 |
|
183,788 |
|
176,644 |
|
168,777 |
|
(75,574) |
|
(75,574) |
|
(75,422) |
|
(75,412) |
|
(73,915) |
Accumulated other comprehensive loss |
(54,333) |
|
(53,757) |
|
(47,530) |
|
(79,462) |
|
(55,770) |
Total shareholders' equity |
373,808 |
|
369,659 |
|
372,002 |
|
332,745 |
|
349,876 |
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Shareholders' Equity |
$ 4,011,914 |
|
$ 3,880,258 |
|
$ 3,861,418 |
|
$ 3,737,797 |
|
$ 3,708,090 |
|
|
|
|
|
|
|
|
|
|
Quarterly Average Balances |
|
|
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
|
|
Earning assets |
$ 3,619,809 |
|
$ 3,552,552 |
|
$ 3,449,344 |
|
$ 3,443,226 |
|
$ 3,354,968 |
Securities |
639,625 |
|
646,203 |
|
645,202 |
|
645,202 |
|
658,515 |
Loans |
2,964,377 |
|
2,880,031 |
|
2,805,995 |
|
2,742,736 |
|
2,689,516 |
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Total deposits |
$ 2,969,380 |
|
$ 2,998,150 |
|
$ 2,977,802 |
|
$ 2,946,849 |
|
$ 2,817,712 |
Interest-bearing deposits |
2,266,334 |
|
2,285,667 |
|
2,163,160 |
|
1,966,014 |
|
1,912,955 |
Other interest-bearing liabilities |
546,700 |
|
431,919 |
|
383,877 |
|
178,614 |
|
471,837 |
Total shareholders' equity |
365,784 |
|
370,452 |
|
337,866 |
|
348,209 |
|
347,647 |
Supplemental Financial Information |
|||||||||
(Unaudited - dollars in thousands except share data) |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
||||||||
|
|
|
|
|
|
|
|
|
|
Income statement |
2024 |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
Total interest and dividend income |
$ 50,593 |
|
$ 50,128 |
|
$ 48,599 |
|
$ 46,601 |
|
$ 44,609 |
Total interest expense |
22,842 |
|
21,756 |
|
18,547 |
|
15,097 |
|
13,270 |
Net interest income |
27,751 |
|
28,372 |
|
30,052 |
|
31,504 |
|
31,339 |
Provision for credit losses |
1,800 |
|
2,042 |
|
2,325 |
|
630 |
|
861 |
Provision for unfunded commitments |
(145) |
|
(50) |
|
(80) |
|
130 |
|
264 |
Noninterest income |
10,543 |
|
8,504 |
|
8,823 |
|
8,125 |
|
9,149 |
Noninterest expense |
28,555 |
|
27,689 |
|
25,393 |
|
26,622 |
|
27,649 |
Income before taxes |
8,084 |
|
7,195 |
|
11,237 |
|
12,247 |
|
11,714 |
Income tax expense |
1,020 |
|
835 |
|
1,582 |
|
1,860 |
|
1,680 |
Net income |
$ 7,064 |
|
$ 6,360 |
|
$ 9,655 |
|
$ 10,387 |
|
$ 10,034 |
|
|
|
|
|
|
|
|
|
|
Per share data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share |
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
|
|
|
Net income |
$ 7,064 |
|
$ 6,360 |
|
$ 9,655 |
|
$ 10,387 |
|
$ 10,034 |
Less allocation of earnings and |
|
|
|
|
|
|
|
|
|
dividends to participating securities |
266 |
|
227 |
|
362 |
|
389 |
|
374 |
Net income available to common |
|
|
|
|
|
|
|
|
|
shareholders - basic |
$ 6,798 |
|
$ 6,133 |
|
$ 9,293 |
|
$ 9,998 |
|
$ 9,660 |
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding |
15,729,049 |
|
15,695,963 |
|
15,695,978 |
|
15,735,007 |
|
15,775,812 |
Less average participating securities |
591,712 |
|
561,344 |
|
588,625 |
|
588,715 |
|
588,715 |
Weighted average number of shares outstanding |
|
|
|
|
|
|
|
|
|
used to calculate basic earnings per share |
15,137,337 |
|
15,134,619 |
|
15,107,353 |
|
15,146,292 |
|
15,187,097 |
|
|
|
|
|
|
|
|
|
|
Earnings per common share |
|
|
|
|
|
|
|
|
|
Basic |
$ 0.45 |
|
$ 0.41 |
|
$ 0.62 |
|
$ 0.66 |
|
$ 0.64 |
Diluted |
$ 0.45 |
|
0.41 |
|
0.62 |
|
0.66 |
|
0.64 |
|
|
|
|
|
|
|
|
|
|
Common shares dividend paid |
$ 2,516 |
|
$ 2,510 |
|
$ 2,511 |
|
$ 2,521 |
|
$ 2,367 |
|
|
|
|
|
|
|
|
|
|
Dividends paid per common share |
0.16 |
|
0.16 |
|
0.16 |
|
0.16 |
|
0.15 |
Supplemental Financial Information |
|||||||||
(Unaudited - dollars in thousands except share data) |
|||||||||
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
||||||||
|
|
|
|
|
|
|
|
|
|
Asset quality |
2024 |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
Allowance for credit losses: |
|
|
|
|
|
|
|
|
|
Beginning of period |
$ 38,849 |
|
$ 37,160 |
|
$ 35,280 |
|
$ 35,251 |
|
$ 34,196 |
Charge-offs |
(887) |
|
(651) |
|
(577) |
|
(666) |
|
(14) |
Recoveries |
157 |
|
298 |
|
132 |
|
65 |
|
208 |
Provision |
1,800 |
|
2,042 |
|
2,325 |
|
630 |
|
861 |
End of period |
$ 39,919 |
|
$ 38,849 |
|
$ 37,160 |
|
$ 35,280 |
|
$ 35,251 |
|
|
|
|
|
|
|
|
|
|
Allowance for unfunded commitments: |
|
|
|
|
|
|
|
|
|
Beginning of period |
$ 3,851 |
|
$ 3,901 |
|
$ 3,981 |
|
$ 3,851 |
|
$ 3,587 |
Charge-offs |
- |
|
- |
|
- |
|
- |
|
- |
Recoveries |
- |
|
- |
|
- |
|
- |
|
- |
Provision |
(145) |
|
(50) |
|
(80) |
|
130 |
|
264 |
End of period |
$ 3,706 |
|
$ 3,851 |
|
$ 3,901 |
|
$ 3,981 |
|
$ 3,851 |
|
|
|
|
|
|
|
|
|
|
Ratios |
|
|
|
|
|
|
|
|
|
Allowance to total loans |
1.32 % |
|
1.34 % |
|
1.30 % |
|
1.28 % |
|
1.29 % |
Allowance to non-performing assets |
233.47 % |
|
247.06 % |
|
245.66 % |
|
308.52 % |
|
327.05 % |
Allowance to non-performing loans |
233.47 % |
|
247.06 % |
|
245.66 % |
|
308.52 % |
|
327.05 % |
Non-performing assets to total assets |
0.43 % |
|
0.41 % |
|
0.39 % |
|
0.31 % |
|
0.29 % |
|
|
|
|
|
|
|
|
|
|
Non-performing assets |
|
|
|
|
|
|
|
|
|
Non-performing loans |
$ 17,098 |
|
$ 15,725 |
|
$ 15,126 |
|
$ 11,435 |
|
$ 10,747 |
Other real estate owned |
- |
|
- |
|
- |
|
- |
|
- |
Total non-performing assets |
$ 17,098 |
|
$ 15,725 |
|
$ 15,126 |
|
$ 11,435 |
|
$ 10,747 |
|
|
|
|
|
|
|
|
|
|
Capital and liquidity |
|
|
|
|
|
|
|
|
|
Tier 1 leverage ratio |
8.59 % |
|
8.62 % |
|
8.75 % |
|
8.73 % |
|
8.69 % |
Tier 1 risk-based capital ratio |
10.63 % |
|
10.81 % |
|
10.72 % |
|
10.82 % |
|
10.71 % |
Total risk-based capital ratio |
14.28 % |
|
14.53 % |
|
14.45 % |
|
14.60 % |
|
14.49 % |
Tangible common equity ratio (1) |
6.18 % |
|
6.28 % |
|
6.36 % |
|
5.49 % |
|
6.00 % |
|
|
|
|
|
|
|
|
|
|
(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 |
||||||||
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
2024 |
|
2023 |
|
2023 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
Tangible Common Equity |
|
|
|
|
|
|
|
|
|
Total Shareholder's Equity - GAAP |
$ 373,808 |
|
$ 369,659 |
|
$ 372,002 |
|
$ 332,745 |
|
$ 349,876 |
Less: |
134,227 |
|
134,618 |
|
135,028 |
|
134,998 |
|
135,406 |
Tangible common equity (Non-GAAP) |
$ 239,581 |
|
$ 235,041 |
|
$ 236,974 |
|
$ 197,747 |
|
$ 214,470 |
|
|
|
|
|
|
|
|
|
|
Total Shares Outstanding |
15,737,222 |
|
15,727,013 |
|
15,695,424 |
|
15,695,997 |
|
15,780,227 |
|
|
|
|
|
|
|
|
|
|
Tangible book value per share |
$ 15.22 |
|
$ 14.95 |
|
$ 15.10 |
|
$ 12.60 |
|
$ 13.59 |
|
|
|
|
|
|
|
|
|
|
Tangible Assets |
|
|
|
|
|
|
|
|
|
Total Assets - GAAP |
$ 4,011,914 |
|
$ 3,880,258 |
|
$ 3,861,418 |
|
$ 3,737,797 |
|
$ 3,708,090 |
Less: |
134,227 |
|
134,618 |
|
135,028 |
|
134,998 |
|
135,406 |
Tangible assets (Non-GAAP) |
$ 3,877,687 |
|
$ 3,745,640 |
|
$ 3,726,390 |
|
$ 3,602,799 |
|
$ 3,572,684 |
|
|
|
|
|
|
|
|
|
|
Tangible common equity to tangible assets |
6.18 % |
|
6.28 % |
|
6.36 % |
|
5.49 % |
|
6.00 % |
The efficiency ratio is noninterest expenses, less amortization of intangible assets and acquisition related costs, as a percentage of FTE net interest income plus noninterest income. The following tables reconcile the non-GAAP financial measures of the efficiency ratio to GAAP for the three and six months ended
|
Three Months Ended |
|
Six Months Ended |
||||
|
|
|
|
|
|
|
|
Efficiency ratio (non-GAAP): |
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
Noninterest expense (GAAP) |
$ 28,555 |
|
$ 27,649 |
|
$ 56,244 |
|
$ 55,081 |
Less: Amortization of intangible assets expense |
366 |
|
399 |
|
757 |
|
797 |
Less: Acquisition related expenses |
- |
|
- |
|
- |
|
- |
Noninterest expense (non-GAAP) |
28,189 |
|
27,250 |
|
55,487 |
|
54,284 |
|
|
|
|
|
|
|
|
Net interest income (GAAP) |
27,751 |
|
31,339 |
|
56,123 |
|
63,940 |
Plus: Taxable equivalent adjustment |
631 |
|
629 |
|
1,262 |
|
1,219 |
Noninterest income (GAAP) |
10,543 |
|
9,149 |
|
19,047 |
|
20,217 |
Less: Net gains (losses) on equity securities |
74 |
|
(170) |
|
(67) |
|
(238) |
Net interest income (FTE) plus noninterest income (non-GAAP) |
38,851 |
|
41,287 |
|
76,499 |
|
85,614 |
Efficiency ratio (non-GAAP) |
72.6 % |
|
66.0 % |
|
72.5 % |
|
63.4 % |
View original content to download multimedia:https://www.prnewswire.com/news-releases/civista-bancshares-inc-announces-second-quarter-2024-financial-results-302208232.html
SOURCE