Business
Civista Bancshares, Inc. Announces First Quarter 2023 Financial Results
SANDUSKY, Ohio, April 28, 2023 /PRNewswire/ -- Civista Bancshares, Inc. (NASDAQ:CIVB) ("Civista") announced its unaudited financial results for the three
About this update from Civista Bancshares, Inc.
[{"type":"text","content":"SANDUSKY, Ohio, April 28, 2023 /PRNewswire/ -- Civista Bancshares, Inc. (NASDAQ:CIVB) (\"Civista\") announced its unaudited financial results for the three months ending March 31, 2023. \n\n \n \n \n \n \n \n\n \nFirst quarter highlights\nNet income of $12.9 million, or $0.82 per diluted share, for the first quarter of 2023, compared to $8.5 million, or $0.57 per diluted share, for the first quarter of 2022. Low cost of deposits of 49 basis points and total funding costs of 114 basis points for the quarter.Based on the March 31, 2023 market close share price of $16.88, the $0.14 first quarter dividend is equivalent to an annualized yield of 3.32% and a dividend payout ratio of 17.07%.On January 1, 2023, Civista adopted ASC 326 (\"CECL\") which resulted in an adjustment to the reserve of approximately $4.3 million and an additional $3.4 million reserve for unfunded commitments. \"With all the turmoil in the industry, strong core deposit franchises like Civista, matter again. Our deposit base is well diversified, with no concentrations and approximately 83 percent of our deposits are insured. It's these core deposits that drive our better than peer net interest margin and strong profitability. Our net interest margin for the quarter was 4.11% and our ROAA was 1.47%,\" said Dennis G. Shaffer, CEO and President of Civista.\nResults of Operations:\nFor the three-month period ended March 31, 2023 and 2022\nNet interest income increased $9.7 million, or 42.2%, for the first quarter of 2023 compared to the same period of 2022, due to an increase in interest income partially offset by an increase in interest expense. Noninterest income also increased due primarily to the addition of lease revenue and residual income related to the acquisition of VFG. \nNet interest margin increased 73 basis points to 4.11% for the first quarter of 2023, compared to 3.38% for the same period a year ago. \nInterest income increased by $16.9 million, or 68.4%, for the first quarter of 2023, compared to the same period last year. The increase in interest income was driven by an increase of $397.3 million in average earning assets and to a 159-basis point increase in yield on average earning assets. The increase in average earning assets and the increase in yield contributed to the increase in interest income by $7.4 million and $9.5 million, respectively. \n...