Civista Bancshares, Inc. · NASDAQ:CIVB
Civista Bancshares — Debt Investor Presentation (November 2021)
48 slides from Civista Bancshares's debt investor presentation, Nov 30, 2021
Slide 1: Fixed Income Investor Presentation
Confidential Fixed Income Investor Presentation Dennis G. Shaffer—Chief Executive Officer & President Richard J. Dutton—Senior Vice President, Chief Operating Officer Charles A. Parcher—Senior Vice President, Chief Lending Officer NASDAQ: CIVB
Slide 2: Offering Disclaimers
Offering Disclaimers The information contained in this confidential presentation is a summary and it is not complete. It has been prepared for use only in connection with the private placement (the “Placement”) of securities (the “Securities”) of Civista Bancshares, Inc. (the “Company”). The Securit
Slide 3: Offering Disclaimers: Forward-Looking Statements and Non-GAAP
Offering Disclaimers 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, estimates or projections of future events, results or long-term
Slide 4: Terms of the Proposed Offering
Terms of the Proposed Offering Issuer Civista Bancshares, Inc. (NASDAQ: CIVB) Security Subordinated Notes due 2031 Amount $60 million Security Rating A- by Egan Jones Rating Company1 Issuance Type Regulation D Private Placement with Registration Rights Offering Structure Fixed-to-Floating (Fixed dur
Slide 5: Executive Management
Executive Management Dennis G. Shaffer Charles A. Parcher Richard J. Dutton ➢ CEO & President ➢ SVP & Chief ➢ SVP & Chief ➢ President, Civista Lending Officer Operating Officer Bank ➢ 33 years of ➢ 35 years of ➢ 36 years of banking banking banking experience experience experience ➢ J
Slide 6: Franchise Overview
Franchise Overview ➢ Bank founded and headquartered in 1884 in Sandusky, Ohio ➢ 9th Largest Publicly Traded Commercial Bank Headquartered in Ohio ➢ 449 Employees ➢ Community Banking Focused Operations in 12 Ohio, 2 Indiana and 1 Kentucky Counties – 33 Branches & 2 Loan Production Offices ➢
Slide 7: Franchise Overview: Regional Markets
Franchise Overview ➢ Sandusky/Norwalk/Port Clinton, ➢ Cleveland/Akron, Ohio Ohio ➢ 9 Locations ➢ 3 Locations ➢ $471 million in loans ➢ $626 million in loans ➢ $986 million in deposits ➢ $141 million in ➢ #1 deposit market share in Sandusky, deposits Ohio with ~52% market share ➢
Slide 8: Franchise Overview
Franchise Overview ➢ Community bank franchise in growth markets with an established operating model – Gather attractive low-cost deposits (18 bps total cost of deposits) – Generate loans organically in select growing markets (operations in the 5 largest MSAs in Ohio) ➢ Strong capital position âž
Slide 9: Civista Bancshares Best Employers in Ohio
CIVISTA BANCSHARES, INC BEST EMPLOYERS IN OHIO| 2021 CRAIN'S CLEVELAND BUSINESS MULTI- YEAR WINNER 2021 % 2020 % 2019 Banks to Work For 2013-2020
Slide 10: Current Initiatives
DK CIVISTA Current Initiatives
Slide 11: Current Initiatives: COVID-19 Deferrals
Current Initiatives ➢ COVID-19 Deferrals ➢ During 2020, Civista modified a total of 813 loans totaling $431.1 million under the provisions of the CARES Act. ➢ Remaining loans modified under COVID-19 Programs at September 30, 2021: $s in thousands $s in thousands % of Loans % of Loans Loan Cate
Slide 12: Current Initiatives: SBA Paycheck Protection Program
Current Initiatives ➢ SBA Paycheck Protection Program ➢ Originated $399.4 million in PPP loans – 2,360 loans for $268.3 million in Round 1 with $9.9 million in fees – 1,340 loans for $131.1 million in Round 2 with $6.6 million in fees ➢ Provided assistance to more than 3,500 businesses and the
Slide 13: Current Initiatives: Leveraging Technology
Current Initiatives ➢ Leveraging Technology ➢ Enhance utilization of technology to improve efficiency and customer experience – Curbside banking – E-Sign – Digital Transformation ✓ Enhanced Treasury Management Services and Reporting ✓ Improved in-branch and online account opening and online acce
Slide 14: Civista Digital Banking
Current Initiatives ➢ Civista Digital Banking 14
Slide 15: Financial Trends
DK CIVISTA Financial Trends
Slide 16: Financial Highlights
Financial Trends Financial Highlights ($s in thousands, except per share data) September 30, September 30, 2021 2020 % Change Balance Sheet Assets $2,952,236 $2,817,993 4.76% Gross Loans (excluding HFS) 1 2,004,814 2,040,940 (1.77%) Deposits 2,434,766 2,068,769 17.69% September 30, September 30, 202
Slide 17: Total Assets
Financial Trends Total Assets1 ($ in millions) $2,769 $2,952 $2,310 ,139 $1,526 $1,377 2016 2017 2018 2019 2020 2021 Q3 17 1. 2018 includes $578 million in assets due to United Community Bancorp acquisition
Slide 18: Total Gross Loans
Financial Trends Total Gross Loans1 ($ in millions) $2,058 $2,005 ,709 $1,165 $1,056 2016 2017 2018 2019 2020 2021 Q3 1. 2021 includes $83.3 million of PPP Loans. 2020 includes $217.3 million of PPP loans. 2018 includes $299 million in loans due to United Community Bancorp acquisition. 18
Slide 19: Loan Mix
Financial Trends Loan Mix ($ in millions) ➢ Total Gross Loans: $2.0 billion ➢ CRE to RBC Ratio: 330.9% Real Estate Consumer & Other, Commercial & Construction, $179.5 , $12.3 , 1% Agriculture, $193.5 , 9% 10% PPP, $83.3 , 4% Residential Real Farm Real Estate, Estate, $424.6 , 21% $30.1 , 1% CRE
Slide 20: Asset Quality Trends
Financial Trends Nonaccrual NPAs & 90 days & 90+PD Past/ Due Assets 2 / Gross Loans Loan Loss Reserves / Gross Loans 0.66% 1.26% 1.33% 0.57% 1.22% 1.13% 0.53% 0.50% 0.88% 0.86% 0.34% 0.25% 2016 2017 2018 2019 2020 2021 Q3 2016 2017 2018 2019 2020 2021 Q3 Reserves / NPLs NCOs / Average Loans 0.02% 0.
Slide 21: Total Deposits
Financial Trends Total Deposits1 ($ in millions) $2,435 $2,189 $1,679 $1,580 $1,205 $1,121 2016 2017 2018 2019 2020 2021 Q3 21 1. 2018 includes $476 million in deposits due to United Community Bancorp acquisition
Slide 22: Deposit Mix
Financial Trends Deposit Mix ➢ Total Deposits: $2.4 billion ➢ Loan/Deposit Ratio: 81.2%1 ➢ 34% Noninterest Bearing Demand Deposits are 75% Commercial and 25% Retail Certificates of Brokered Noninterest Deposit, Deposits, Bearing $246.8 , 10.1% $26.6 , 1.1% Demand, $832.5 , 34.2% Cost of Cost o
Slide 23: Cost of Deposits and Yield on Loans
Financial Trends ➢ Total Cost of Deposits (%) 0.93% 0.93% 0.71% 0.71% 0.66% 0.48% 0.47% 0.48% 0.43% 0.29% 0.32% 0.33% 0.28% 0.26% 0.20% 0.22% 0.19% 0.18% 2016Y 2017Y 2018Y 2019Y 2020Y 2021 Q3 CIVB Peer Median Peer Top Quartile Yield on Loans (%) 5.42% 5.17% 5.27% 5.19% 5.04% 5.09% 4.87% 4.86% 4.91
Slide 24: Net Interest Margin
Financial Trends Net Interest Margin 4.31% 4.21% 4.01% 3.93% 3.86% 3.81% 3.75% 3.79% 3.69% 3.66% 3.70% 3.70% 3.61% 3.48% 3.47% 3.48% 3.50% 3.31% 2016Y 2017Y 2018Y 2019Y 2020Y 2021 Q3 CIVB Peer Median Peer Top Quartile 2021 peer data as of 9/30/2021, or the latest available date. 24 Note: Comparable
Slide 25: Non-Interest Income and Expense
Financial Trends Non-Interest Income and Expense ➢ Fee income platform ➢ Disciplined approach to controlling non-interest expense – Service charges on deposit accounts were $4.1 million YTD 2021 and $3.8 million YTD 2020 ➢ Continued focus on review of branch network ➢ Mortgage Banking Two br
Slide 26: Capital Management
Financial Trends Capital Management ➢ Raised $32.8 million of capital (issued 1,610,000 shares) in February 2017 ➢ Additional $104.7 million of capital (issued 4,277,430 shares) related to UCB merger in September 2018 ➢ Redeemed outstanding preferred shares effective December 20, 2019 ➢ Auth
Slide 27: Investment Portfolio and Liquidity Sources
Investment Portfolio and Liquidity Sources Investment Portfolio Liquidity Sources As of September 30, 2021 % of Total Debt â–ª Civista has approximately over $1 billion of readily Securities available funding sources to meet customer needs through the following sources: Debt Securities Available-for
Slide 28: Providing Shareholder Value
DK clvista Providing Shareholder Value
Slide 29: Net Income & Earnings Per Share
Providing Shareholder Value Net Income & Earnings Per Share (Available to Common) ($ in millions) $39,737 $2.55 $33,231 $32,192 $1.85 2 $2.01 $2.00 $24,650 $1.57 $1.28 $15,716 $14,628 2016 2017 2018 2019 2020 2021 Q3¹ 1. LTM basis 29 2. 2018 ratios adjusted for merger related expenses (see Appendix)
Slide 30: Total Shareholders' Equity & Return on Tangible Equity
Providing Shareholder Value Total Shareholders’ Equity & Return on Tangible Equity2 ($ in millions) $350,108 $348,450 17.38% $330,126 $298,898 14.91% 13.48% 12.02% 12.04% 10.49% $184,461 $137,616 2016 2017 2018 2019 2020 2021 Q3¹ 1. LTM basis 30 2. See Appendix for Non-GAAP reconciliation
Slide 31: Tangible Book Value per Share
Providing Shareholder Value Tangible Book Value per Share1 $17.73 $16.82 $14.77 $13.68 $13.14 $10.84 2016 2017 2018 2019 2020 2021 Q3 1. Non-GAAP reconciliation in appendix. 31
Slide 32: Pro Forma Analysis
» CIVISTA BANCSHARES, INC. Pro Forma Analysis
Slide 33: Pro Forma Capital Ratios and Loan Concentrations
Pro Forma Capital Ratios and Loan Concentrations Pro Forma As of 9/30/2021 Estimated Consolidated Capital Ratios and CRE Concentration 18.21% 15.43% 309% 14.18% 14.10% 261% 10.01% 9.81% 9.28% 9.10% TCE / TA Leverage Ratio Tier 1 Ratio Total Capital Ratio CRE / Total RBC Estimated Bank Level Capital
Slide 34: Pro Forma Double Leverage & Interest Coverage Ratio
Pro Forma Double Leverage & Interest Coverage Ratio Double Leverage As of December 31, Additional Pro Forma—Dollar Amounts in Thousands 2018 2019 2020 3Q21 Equity 3Q21 Investment in Subsidiaries $302,947 $335,048 $360,965 $369,438 $58,600 $428,038 Consolidated Equity $298,898 $330,126 $350,108 $348,
Slide 35: Existing Capital Structure
Existing Capital Structure Equity â–ª Common Equity = $350.1 million â–ª Tangible Common Equity = $267.4 million Trust Preferred â–ª Trust Preferred = $29.4 million â–ª Five statutory business trusts that were formed for the purpose of issuing trust preferred securities â–ª The capital securities ar
Slide 36: Compelling Investment Opportunity
Compelling Investment Opportunity
Slide 37: Compelling Investment Opportunity
Compelling Investment Opportunity ➢ Community bank franchise poised for acquisitions and strong core deposit franchise ➢ Strong capital position ➢ Strong credit culture and asset quality ➢ Experienced acquirer ➢ Continued strong NIM ➢ Experienced management team with an average of 30 yea
Slide 38: Experienced Acquirer & Organic Growth Model
Experienced Acquirer & Organic Growth Model ➢ Completed 3 acquisitions since 2007, including the acquisition of United Community Bancorp, which closed September 14, 2018 – Continues to actively seek accretive acquisitions opportunities ➢ Expanded commercial loan growth in Columbus, Cleveland, Ak
Slide 39: Appendix
DK clvista Appendix
Slide 40: Well-Capitalized Position
Well-Capitalized Position Consolidated Bank Level Tangible Common Equity / Tangible Assets (%) Leverage Ratio (%) 11.08% 12.70% 12.79% 12.34% 9.98% 9.96% 9.31% 9.28% 10.61% 10.76% 10.77% 9.99% 10.01% 9.61% 9.30% 2017 2018 2019 2020 3Q21 2017 2018 2019 2020 3Q21 Total Capital Ratio (%) Tier 1 Ratio (
Slide 41: Operating Results
Operating Results ($s in thousands, except per share data) LTM Q3 2016 2017 2018 2019 2020 2021 Net Interest Income $50,259 $54,502 $66,107 $85,100 $89,727 $95,633 Provision for Loan Losses (1,300) 0 780 1,035 10,112 3,080 Noninterest Income 16,132 16,334 18,131 22,443 28,182 32,307 Noninterest Expe
Slide 42: Select Balance Sheet Data
Select Balance Sheet Data $s in thousands As of and for the Years Ended Decemeber 31, 2016 2017 2018 2019 2020 2021 Q3 Cash and Due From Banks 36,695 40,519 42,779 48,535 128,222 246,165 Securities Available for Sale 195,864 230,230 346,294 358,499 363,464 498,149 Gross Loans 1,055,506 1,164,661 1,5
Slide 43: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($s in thousands, except per share data) As of and for the Years Ended December 31, 2016 2017 2018 2019 2020 2021 Q3 Tangible Common Equity Total Shareholder’s Equity—GAAP $ 137,616 $ 184,461 $ 298,898 $ 330,126 $ 350,108 $ 348,450 Less: Preferred Equity 18,950 17,358 9,364-—
Slide 44: Non-GAAP Reconciliation: YTD 2018 Adjusted Efficiency Ratio
Non-GAAP Reconciliation ($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 Effect of tax-exempt income 1,062 Adjusted net interest income 67,169 Nonint
Slide 45: Non-GAAP Reconciliation: YTD 2021 Adjusted Efficiency Ratio
Non-GAAP Reconciliation ($s in thousands) YTD 2021 Adjusted Efficiency ratio Noninterest expense—GAAP $ 61,311 FHLB prepayment penalty (3,717) Adjusted noninterest expense 57,594 Net interest income—GAAP 73,330 Noninterest Income—GAAP 24,641 Gain on sale of Visa B shares (1,785) Adjusted Non-interes
Slide 46: Non-GAAP Reconciliation: 2018 Merger and One-Time Items
Non-GAAP Reconciliation ($s in thousands, except per share data) Actual Merger and Adjusted 2018 one-time GAAP items 2018 Net Interest Income $66,107 $0 $66,107 Provision for Loan Losses 780 0 780 Noninterest Income 18,131 413 18,544 Noninterest Expense 66,679 (12,735) 53,944 Net Income/(Loss) 14,13
Slide 47: Interest Rate Shock Analysis
Interest Rate Shock Analysis Net Interest Income at Risk 30% 120.00% 25% 20.04% 100.00% 20% 15% 13.89% 80.00% 10% 7.40% 5% 60.00% 0% 40.00% -5% -4.30% -10% -8.20% 20.00% -15% -13.04% -20% 0.00% -300bp -200bp -100bp Base +100bp +200bp +300bp NII at Risk (%) 47 Note: Analysis current as of September 3
Slide 48: Thank You
Thank You
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