Civista Bancshares, Inc. · NASDAQ:CIVB
Civista Bancshares — Q3 2020 Earnings Presentation
29 slides from Civista Bancshares's earnings presentation, Nov 9, 2020
Slide 1: Investor Presentation Third Quarter 2020
Investor Presentation Third Quarter 2020 Dennis G. Shaffer - President & Chief Executive Officer Richard J. Dutton - Senior Vice President, Chief Operating Officer NASDAQ: CIVB Exhibit 99.1
Slide 2: Forward-Looking Statements
Forward-Looking Statements. This presentation may contain forward-looking statements within the meaning of such term in federal securities law. Forward-looking statements express management’s current expectations, forecasts of future events or long-term goals, and may be based upon beliefs, expectat
Slide 3: Contact Information
Contact Information Civista Bancshares, Inc.’s common shares are traded on the NASDAQ Capital Market under the symbol “CIVB.” Additional information can be found at: www.civb.com Dennis G Shaffer President & Chief Executive Officer dgshaffer@civb.com Telephone: 888.645.4121
Slide 4: Corporate Overview
Corporate Overview Bank founded in 1884 9th Largest Publicly Traded Commercial Bank Headquartered in Ohio Community Banking Focused Operations in 12 Ohio, 2 Indiana and 1 Kentucky Counties 35 Branches & 2 Loan Production Offices Operations in the 5 largest Ohio MSAs Strong Core Deposit Franchise Fra
Slide 5: Investment Highlights
Investment Highlights Community bank franchise in growth markets with an established operating model Gather attractive low-cost deposits (35 bps total cost of deposits) Generate loans in select growing markets (operations in the 5 largest MSAs in Ohio) Strong capital position Disciplined underwritin
Slide 6: Branch Footprint
Branch Footprint Headquartered in Sandusky, Ohio 35 branches & 2 LPOs (Ohio, Indiana and Kentucky) 461 Employees
Slide 7: Markets
Markets Source: S&P Global Market Intelligence, FDIC. Deposit market share information as of September 30, 2020. Sandusky/Norwalk/Port Clinton, Ohio 9 Locations $441 million in loans $828 million in deposits #1 deposit market share in Sandusky, Ohio with ~51% market share Cleveland/Akron, Ohio 3 Loc
Slide 8: Experienced Management Team
Experienced Management Team Dennis G. Shaffer SVP & Chief Operating Officer 34 years of banking experience Joined in 2007 Richard J. Dutton SVP & Chief Lending Officer 32 years of banking experience Joined in 2016 Charles A. Parcher SVP & General Counsel 17 years of banking experience Joined in 2018
Slide 9: Financial Highlights
Financial Highlights Source: Company Management and SNL Financial. 1. Includes $259.1 million of PPP loans . 2. Reported on an annualized basis. 3. Non-GAAP reconciliation on page 26.
Slide 10: Increasing Shareholder Value
Increasing Shareholder Value Source: Company management and SNL Financial. 1 LTM basis 2 Non-GAAP reconciliation on page 26 3 Page 28 shows 2018 ratios adjusted for merger related expenses Tangible Book Value per Share2 Diluted EPS3
Slide 11: Proven Acquirer & Attractive Organic Growth
Proven Acquirer & Attractive Organic Growth Source: Company Management and SNL Financial. 1. Includes $259.1 million of PPP loans Completed 3 acquisitions since 2007, including the acquisition of United Community Bancorp, which closed September 14, 2018 Expanded commercial loan growth in Columbus, C
Slide 12: Deposit Mix
Deposit Mix Total Deposits: $2.1 billion 2020 Total Cost of Deposits: 0.35% 32% Noninterest Bearing Demand Deposits split between Commercial (71%) and Retail (29%) 2020 Loan/Deposit Ratio: 98.65%
Slide 13: Loan Mix
1. Hotel, Restaurant, Entertainment, Retail, Industrial and Office Percentages net of PPP loans of $259.1 million Loan Mix Total Gross Loans: $2.0 billion 2020 Loan Yield: 4.53% Diversified CRE Portfolio1 No Big Box Retail or Energy Exposure Hotel, Restaurant, Entertainment (12%), Retail (19%), Indu
Slide 14: Peer Comparison: Cost of Deposits and Yield on Loans
Source: Company Management and SNL Financial. 2020 Peer data as of 9/30/2020, or the latest available date. Note: Comparable peers include public banks $1-$4B in Ohio and +/- 40% CIVB’s asset size in contiguous states. Total Cost of Deposits (%) Yield on Loans (%)
Slide 15: Peer Leading FTE NIM
Peer Leading FTE NIM Source: SNL Financial. 2020 peer data as of 9/30/2020, or the latest available date. Note: Comparable peers include public banks $1-$4B in Ohio and +/- 40% CIVB’s asset size in contiguous states.
Slide 16: Operating Efficiencies
Operating Efficiencies Source: Company Management. 1Page 27 shows 2018 ratios adjusted for merger related expenses Fee income platform Service charges on deposit accounts were $3.8 million YTD 2020 and $4.7 million YTD 2019 Mortgage Banking Gain on sale of loans, primarily mortgage loans, was $5.5 m
Slide 17: Leveraging Technology
Leveraging Technology Enhance utilization of technology to leverage efficiency and improve internal and external customer experience Curbside banking Workflow and electronic storage E-Sign Digital Transformation (in process) Retail Commercial Improved in-branch and online account opening and online
Slide 18: Strong Asset Quality
Source: Company Management and SNL Financial. 1 LTM basis 2 Excluding PCI (purchased credit impaired loans). Strong Asset Quality Reserves / NPLs NCOs / Average Loans Loan Loss Reserves / Gross Loans NPAs & 90+PD / Assets Loan Loss Reserves / Gross Loans Nonaccrual & 90 days Past Due2 / Gross Loans
Slide 19: Profitability & Returns Analysis
Profitability & Returns Analysis Source:Company Management and SNL Financial. LTM basis Page 28 shows 2018 ratios adjusted for merger related expenses Diluted Earnings per Share2 ROAE2 ROAA2 Net Income Available to Common Shareholders2
Slide 20: Strong Capital Position
Strong Capital Position 1 TCE Non-GAAP reconciliation on page 27 2 Reported on an annualized basis 3 Page 28 shows 2018 ratios adjusted for merger related expenses Successfully raised $32.8 million of capital (issued 1,610,000 shares) in February 2017 Additional $104.7 million of capital (issued 4,2
Slide 21: Operating Results
Source: Company Management and SNL Financial. Operating Results
Slide 22: Compelling Investment Opportunity
Compelling Investment Opportunity Community bank franchise poised for acquisitions and strong core deposit franchise Strong capital position Strong credit culture and asset quality Proven acquirer of choice Completed 3 acquisitions since 2007, including the acquisition of United Community Bancorp, w
Slide 23: COVID-19 Programs
COVID-19 Programs Top Priorities: Focus on Customer’s Financial Needs and Health and Safety of Employees and Customers Assistance Programs SBA – Paycheck Protection Program Commercial Loan Payment Deferral Program Suspension of Foreclosure Program Consumer and Mortgage Payment Deferral Program Suspe
Slide 24: SBA Paycheck Protection Program
SBA Paycheck Protection Program $259.1 million through September 30, 2020 Provided assistance to more than 2,300 businesses and their over 36,000 employees Over 2,300 loans, average loan size ~$110K Over 50% of PPP loans fall within Restaurants, Healthcare, Manufacturing and Construction As of 9/30/
Slide 25: PPP Loans and COVID-19 Deferrals
1 PPP loans for September 30, 2020 totaled $259,096,870 COVID 19 Deferrals During 2020, Civista modified a total of 813 loans totaling $431.1 million, primarily consisting of the deferral of principal and/or interest payments, under the provisions of the CARES Act. As of September 30, 2020, loans th
Slide 26: Non-GAAP Reconciliation
CIVISTA Non-GAAP Reconciliation BANCSHARES, INC. Tangible Common Equity and Tangible Assets ($s in thousands, except per share data) As of and for the Years Ended December 31, Tangible Common Equity Total Shareholder's Equity - GAAP $ 125,173 $ 137,616 $ 184461 $ 298898 $ 330,126|$ 342,055 Less: Pre
Slide 27: Non-GAAP Reconciliation
CIVISTA Non-GAAP Reconciliation BANCSHARES, INC. ($s in thousands) YTD 2018 Adjusted Efficiency ratio Noninterest expense - GAAP $ 66,679 Acquisition and integration expense (12,735)| Adjusted noninterest expense 53,944 Net interest income - GAAP 66,107 ect of tax-exempt income 1,062 Adjusted net in
Slide 28: Non-GAAP Reconciliation
CIVISTA Non-GAAP Reconciliation BANCSHARES, INC. (Ss in thousands, except per share data) Actual Merger and Adjusted one-time items 2018 Net Interest Income $66,107 $0 $66,107 Provision for Loan Losses 780 ° 780 Noninterest Income 18,131 413 18,544 Noninterest Expense 66,679 (12,735) 53,944 Net inco
Slide 29: Thank You
Thank You