Business
Civista Bancshares, Inc. Announces Second Quarter 2020 Earnings
SANDUSKY, Ohio, July 24, 2020 /PRNewswire/ -- Civista Bancshares, Inc. (NASDAQ:CIVB) ("Civista") reported net income available to common shareholders of $6.5
About this update from Civista Bancshares, Inc.
[{"type":"text","content":"SANDUSKY, Ohio, July 24, 2020 /PRNewswire/ -- Civista Bancshares, Inc. (NASDAQ:CIVB) (\"Civista\") reported net income available to common shareholders of $6.5 million, or $0.41 per diluted share, for the second quarter of 2020, compared with $8.5 million, or $0.51 per diluted share, for the prior year period. For the six-month period ended June 30, 2020, Civista reported net income available to common shareholders of $14.3 million or $0.88 per diluted share, compared to $18.0 million or $1.08 per diluted share, in the same period of 2019. \n\"The challenges for 2020 continued through the second quarter. Much of our market area was under a stay at home order during a large part of the second quarter. We continued to work with customers providing loan payment deferrals as well as relief from overdraft and service charge fees. Along with this economic uncertainty comes the need to increase our provision for loan losses. Despite these challenging times, we are extremely pleased with our second quarter earnings,\" said Dennis G. Shaffer, President and CEO of Civista.\nResults of Operations:\nFor the three-month period ended June 30, 2020 and 2019\nNet interest income increased $333 thousand, or 1.5%, for the second quarter of 2020 compared to the same period of 2019. The decrease in net interest income is a result of a decrease in interest income, partially offset by a decrease in interest expense. \nInterest income decreased $342 thousand, or 1.4%, for the second quarter of 2020. Average yields decreased 113 basis points which resulted in a $5.3 million decrease in interest income. The decrease in average yields was partially offset by an increase in average earning assets of $541.2 million, which resulted in a $4.9 million increase in interest income. Accretion income associated with purchased loan portfolios totaled $758 thousand for the second quarter of 2020 and $1.1 million for the second quarter of 2019. During the quarter, the Bank had average Paycheck Protection Program (\"PPP\") Loans totaling $189.4 million. These loans had an average yield of 3.46% including the amortization of PPP fees. Removing the impact of PPP loans, Interest income would have decreased $1.6 million and average asset yield would have been 4.29%.\nInterest expense decreased $675 thousand, or 21.2%, for the second quarter of 2020 compared to the same p...