Civista Bancshares, Inc. · NASDAQ:CIVB
Civista Bancshares — Q3 2024 Earnings Presentation
44 slides from Civista Bancshares's earnings presentation, Nov 7, 2024
Slide 1: Investor Presentation Third Quarter 2024
Investor Presentation Third Quarter 2024 Dennis G. Shaffer - Chief Executive Officer & President Richard J. Dutton - Senior Vice President, Chief Operating Officer NASDAQ: CIVB
Slide 2: Forward-Looking Statements
Forward-Looking Statements. This presentation may contain “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements express management’s current expectations, estimates or projections of future events, results or lon
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 Chief Executive Officer & President dgshaffer@civista.bank Telephone: 888.645.4121
Slide 4: Who We Are
BANCSHARES, INC. Who We Are
Slide 5: Who We Are
Who We Are Bank founded and headquartered in 1884 in Sandusky, Ohio 10th Largest Publicly Traded Commercial Bank Headquartered in Ohio 536 Employees (526 FTE) Community Banking Focused Operations in 14 Ohio, 2 Indiana and 1 Kentucky Counties 41 Branches & 2 Loan Production Offices Operations in the
Slide 6: Who We Are: Markets and Deposit Share
Who We Are Deposit market share information as of June 30, 2024. Sandusky/Norwalk/Port Clinton, Ohio 9 Locations $624 million in loans $1,732 million in deposits #1 deposit market share in Sandusky, Ohio with ~65% Cleveland/Akron, Ohio 3 Locations $931 million in loans $175 million in deposits North
Slide 7: Who We Are
Who We Are Community bank franchise in growth markets with an established operating model Gather attractive low-cost deposits (129 bps total cost of deposits (excluding brokered)) Generate loans organically in select growing markets (operations in the 5 largest MSAs in Ohio) Strong capital position
Slide 8: Management Team
CIVISTA BANCSHARES, INC. Dennis G. Shaffer Chief Executive Officer and President Michael D. Mulford Senior Vice President Chief Credit Officer Richard J. Dutton Senior Vice President Chief Operating Officer lan Whinnem Senior Vice President Chief Financial Officer Russell L. Edwards 2 Donna M. Senio
Slide 9: Community and Culture
CIVISTA BANCSHARES, INC. TT = i Ih ‘OHIO STADIUM =H ns Sr inOhio pe MULTI-YEAR WINNER avisTA BANK raat 5 is strongly encouraged and supported with corporate donations, matching gifts and employee volunteerism. TOP DIVERSITY EMPLOYER : a ‘Bs FOODBANK esas @) 2) ub Fitde J Tremendous 25: #18 workplace
Slide 10: Current Events
DK ClvISTA Current Events
Slide 11: Deposits
Deposits 15.5%* or $497.9 million of deposits uninsured at September 30, 2024 Cash and unpledged securities of $493.2 million at September 30, 2024 Excluding $472.1 million of public deposits, Civista had no deposit concentrations at September 30, 2024 “Civista’s deposit franchise is one of our most
Slide 12: Liquidity
Liquidity Strong on-balance sheet liquidity $493.2 million of cash and unpledged securities at September 30, 2024 Ready access to off-balance sheet funding Immediate access to $1.2 billion in funding from FHLB, Federal Reserve and CDARS/IntraFi Civista has not and does not anticipate using the Feder
Slide 13: Credit
Credit Adopted CECL January 1, 2023 $4.3 million increase in Allowance for Credit Losses $3.4 million increase in Reserve for Unfunded Commitments Credit metrics remain stable and strong ACL to nonperforming loans was 227.36% at September 30, 2024 ACL to loans was 1.36% at September 30, 2024
Slide 14: Capital
Capital Civista continues to create capital through earnings “Well Capitalized” by regulatory standards Tangible Common Equity ratio was 6.64% at Sep 30, 2024
Slide 15: Initiatives in Flight
Initiatives in Flight Revenue Improvement Identified opportunities for increased service charges Retail & Treasury Management Fees Implemented downward beta strategy to reduce interest expense Launch of Small business initiative Leasing Syndication Desk Expense Reduction Routing overflow calls to ou
Slide 16: Strategic Priorities for 2024 – 2027
Strategic Priorities for 2024 – 2027 Grow Relationships & Core Deposits Position Digital to Grow the Bank Invest in Talent & Culture to Drive the Strategic Plan Leverage Technology to Optimize Profitability Deepen existing relationships Execute small business initiative Increase # of relationships;
Slide 17: Financial Trends
DK ClvISTA Financial Trends
Slide 18: Financial Trends
Financial Trends September 30, 2024 includes $226 thousand of PPP loans; September 30, 2023 includes $319 thousand of PPP loans Presented on an annualized basis 3. Non-GAAP reconciliation on page 41
Slide 19: Financial Trends: Total Assets
Financial Trends Total Assets1 ($ in millions) 1. 2022 includes the addition of $316 million in assets due to Comunibanc Corp acquisition. CAGR 12.6%
Slide 20: Financial Trends: Total Gross Loans and Leases
Financial Trends Total Gross Loans and Leases1 ($ in millions) 1. 2020 includes $217.3 million of PPP loans. 2021 includes $43.2 million of PPP loans. 2022 includes $819 thousand of PPP loans as well as $169 million due to the Comunibanc Corp acquisition. CAGR 12.9%
Slide 21: Financial Trends: Loan Mix
Financial Trends Total Gross Loans: $3.0 billion Loan Mix ($ in millions)
Slide 22: Financial Trends: CRE Non-Owner Concentrations
Financial Trends CRE Non-Owner Concentrations ($ in millions, as percentage of Total Loans)
Slide 23: Financial Trends: CRE Non-Owner Office Details
Financial Trends CRE Non-Owner Office Details ($ in millions)
Slide 24: Civista Leasing and Equipment Financing
Financial Trends Civista Leasing and Equipment Financing ($ in millions) 2024 YTD Production YTD Funded: $89.7 million Sold: $39.6 million Net Production: $50.1 million Average Yield on Total Portfolio: 9.53% Average Yield on Q3 Originations: 9.87% Industry Concentrations: Propane, Recycling/Waste M
Slide 25: Financial Trends: Reserves and Credit Quality
1. LTM basis Financial Trends Reserves / NPLs Net Chargeoff Ratio1 Loan Loss Reserves / Gross Loans NPAs & 90+PD / Assets Loan Loss Reserves / Gross Loans Nonaccrual & 90 days Past Due / Gross Loans
Slide 26: Financial Trends: Total Deposits
Financial Trends Total Deposits1 ($ in millions) 1. 2022 includes the addition of $271 million in deposits due to the Comunibanc Corp acquisition. CAGR 14.7%
Slide 27: Financial Trends: Deposit Mix
* As of 9/30/2024 YTD Financial Trends Total Deposits: $3.2 billion Loan/Deposit Ratio: 94.4% Deposit Mix
Slide 28: Cost of Deposits and Yield on Loans vs Peers
2024 Peer data as of 9/30/2024 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 (%) Financial Trends
Slide 29: Net Interest Margin vs Peers
Financial Trends 2024 peer data as of 9/30/2024, or the latest available date. Note: Comparable peers include public banks $1-$4B in Ohio and +/- 40% CIVB’s asset size in contiguous states. Net Interest Margin
Slide 30: Financial Trends: Fee Income and Expenses
Financial Trends 1. 2021 efficiency ratio is adjusted for nonrecurring items; 2022 efficiency ratio is adjusted for merger related expenses. Page 42 and 43 show Non-GAAP reconciliations Fee income platform Service charges on deposit accounts were $4.5 million YTD 2024 and $5.5 million YTD 2023 (on $
Slide 31: Capital Management
Financial Trends 1. TCE Non-GAAP reconciliation on page 41 2. LTM basis November 2021 issued $75 million in 3.25% subordinated debt (becomes floating in Q4 2026) Authorized $13.5 million stock repurchase plan in April 2024 During 2024, no repurchases have been made $200 million shelf offering comple
Slide 32: Providing Shareholder Value
Providing Shareholder Value 32
Slide 33: Net Income & Earnings Per Share
1. Q3 2024 presented on LTM basis Providing Shareholder Value Net Income & Earnings Per Share (Available to Common)1 (LTM - $ in thousands)
Slide 34: Total Shareholders' Equity & Return on Tangible Equity
1. LTM basis 2. Non-GAAP reconciliation on page 41 3. The change in the AOCI impact of unrealized losses on the investment portfolio from 12/31/21 to 12/31/22 was $67.4 million Providing Shareholder Value Total Shareholders’ Equity & Return on Tangible Equity1,2,3 ($ in thousands)
Slide 35: Tangible Book Value per Share
Providing Shareholder Value 1. Non-GAAP reconciliation on page 41 2. The change in the AOCI impact of unrealized losses on the investment portfolio on TBV/share from 12/31/21 to 12/31/22 was $4.29 Tangible Book Value per Share1,2
Slide 36: Why Civista?
Why Civista? 36
Slide 37: Why Civista? Acquirer and Organic Growth
Why Civista? Completed 6 acquisitions since 2007, including the acquisition of Comunibanc Corp, which closed July 2022 and acquisition of Vision Financial Group, which closed October 2022 In June 2022, opened de novo branch in Gahanna, Ohio, located in Franklin County (Columbus MSA) Experienced Acqu
Slide 38: Why Civista?
Why Civista? Community bank franchise poised for acquisitions and strong core deposit franchise Strong capital position Strong credit culture and asset quality Experienced acquirer (bank and non-bank) Diverse revenue sources, approx. 33% of revenue from non-interest income Continued strong Net Inter
Slide 39: Additional Information
DK ClvISTA Additional Information
Slide 40: Operating Results
BANCSHARES, INC. > ( CIVISTA Operating Results ($s in thousands, except per share data) — 2019°°~=—«2020—''ti‘<i«é«akSCtC(;:SC02—“(<;ésstCti0DC: Net Interest Income $85,100 $89,727 $95,425 $110,204 $125,496 $115,408 Provision for Loan Losses 1,035 10,112 830 1,752 4,435 6,993 Noninterest Income 22,4
Slide 41: Non-GAAP Reconciliation
Non-GAAP Reconciliation 1. LTM basis
Slide 42: Non-GAAP Reconciliation
CIVISTA Non-GAAP Reconciliation BANCSHARES, INC. ($s in thousands) ($s in thousands) ind 2021 Adjusted Efficiency ratio Adjusted Efficiency ratio Noninterest expense - GAAP $ 78,484 Noninterest expense - GAAP $ 90,493 FHLB prepayment penalty (3,717) Acquisition and integration expense (3,757) Adjust
Slide 43: Non-GAAP Reconciliation
CIVISTA Non-GAAP Reconciliation BANCSHARES, INC. ($s in thousands) ind Q3 Q3 2023 2023 2024 Adjusted Efficiency ratio Noninterest expense - GAAP $ 107,611 $ 26,622 $ 27,981 Less: Amortization of intagible assets 1,579 398 363 Adjusted noninterest expense (non-GAAP ) 106,032 26,224 27,618 Net interes
Slide 44: Thank You
Thank You