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Civista Bancshares, Inc. Announces First Quarter 2024 Financial Results
SANDUSKY, Ohio, April 30, 2024 /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 30, 2024 /PRNewswire/ -- Civista Bancshares, Inc. (NASDAQ:CIVB) (\"Civista\") announced its unaudited financial results for the three months ending March 31, 2024. \n\n \n \n \n \n \n \n\n \nFirst quarter highlights\nNet income of $6.4 million, or $0.41 per diluted share, for the first quarter of 2024, compared to $12.9 million, or $0.82 per diluted share, for the first quarter of 2023. Low cost of deposits of 214 basis points and total funding costs of 254 basis points for the quarter.Based on the March 29, 2024 market close share price of $15.38, the $0.16 first quarter dividend is equivalent to an annualized yield of 4.16% and a dividend payout ratio of 42.11%.\"Although I was disappointed in our first quarter results, we knew there would be head winds as we exited the third-party payment tax refund business, and that we would not have the benefit of the $1.5 million one-time bonus from the prior year's renegotiation of our debit brand agreement. In late 2023, we implemented changes in the way we process overdrafts which reduced service charge income. As a result of these three items, we had approximately $3.8 million of noninterest income to replace from the previous year,\" said Dennis G. Shaffer, CEO and President of Civista.\nResults of Operations:\nFor the three-month period ended March 31, 2024 and 2023\nNet interest income decreased $4.2 million, or 13.0%, for the first quarter of 2024 compared to the same period of 2023, due to an increase in interest expense partially offset by an increase in interest income. Noninterest income also decreased, primarily due to the company's decision to step away from our income tax refund business for 2024. \nNet interest margin decreased 77 basis points to 3.22% for the first quarter of 2024, compared to 3.99% for the same period a year ago. \nThe increase in interest income was due to increases in both yield and in asset volume. The 41 basis point increase in yield led to a $3.7 million increase in interest income, while the $239.3 million increase in average earning assets led to a $3.5 million increase in interest income. The increase in volume can be attributed to organic growth.\nInterest expense increased $12.8 million, or 143.4%, for the first quarter of 2024, compared to the same period last year. The average rate paid on interest-bearing liabilities in...