Civista Bancshares, Inc. · NASDAQ:CIVB
Civista Bancshares — Q4 2018 Earnings Presentation
25 slides from Civista Bancshares's earnings presentation, Feb 27, 2019
Slide 1: Investor Presentation Fourth Quarter 2018
Investor Presentation Fourth Quarter 2018 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.” The Company’s depository shares, each representing 1/40th ownership interest in a Series B Preferred Share, are traded on the NASDAQ Capital Market under the symbol “CIVBP.”
Slide 4: Corporate Overview
Corporate Overview Bank originally founded in 1884 10th Largest Publicly Traded Commercial Bank Headquartered in Ohio Community Banking Focused Operations in 12 Ohio, 2 Indiana and 1 Kentucky Counties 35 Branches & 3 Loan Production Offices Operations in the 5 largest Ohio MSAs Franchise Poised for
Slide 5: Experienced Management Team
Experienced Management Team Dennis G. Shaffer SVP & Chief Operating Officer 33 years of banking experience Joined in 2007 Richard J. Dutton SVP & Chief Lending Officer 30 years of banking experience Joined in 2016 Charles A. Parcher SVP & General Counsel 15 years of banking experience Joined in 2018
Slide 6: Branch Footprint
$300 million in loans $456 million in deposits 44% of deposit share in our markets #1 deposit market share in Dearborn County (IN) & #4 in Ripley County (IN) Branch Footprint Source: S&P Global Market Intelligence, FDIC. Deposit market share information as of June 30, 2018. Sandusky / Akron / Clevel
Slide 7: Investment Highlights
Investment Highlights Experienced management team with a deep bench Community bank franchise in growth markets with an established operating model Gather attractive low-cost rural deposits (28 bps total cost of deposits) Generate loans in select growing urban markets (operations in the 5 largest MSA
Slide 8: Financial Highlights
Financial Highlights Source: Company Management and SNL Financial. 1 Pages 21 - 24 show 2018 ratios adjusted for merger related expense 2 Non-GAAP reconciliation on page 25.
Slide 9: Increasing Shareholder Value
Increasing Shareholder Value Source: Company management and SNL Financial. 1 LTM basis 2 Non-GAAP reconciliation on page 25 3 Pages 21 - 24 show 2018 ratios adjusted for merger related expense Tangible Book Value per Share2 Diluted EPS 3
Slide 10: Proven Acquirer & Attractive Organic Growth
Proven Acquirer & Attractive Organic Growth Source: Company Management and SNL Financial. Completed 7 acquisitions since the formation of the holding company in 1987, including the acquisition of United Community Bancorp, which closed in September 14, 2018 Expanded commercial loan growth in Columbus
Slide 11: Deposit Mix and Cost of Deposits
Source: Company Management and SNL Financial. 2018 Peer data as of 12/31/2018, or the latest available date. Note: Comparable peers include public banks +/- 20% CIVB’s asset size in Ohio and contiguous states. Deposit Mix Total Deposits: $1.6 billion 2018 Total Cost of Deposits: 0.28% 30% Noninteres
Slide 12: Loan Mix and Loan Yield
Source: Company Management and SNL Financial. 2018 Peer data as of 12/31/2018, or the latest available date. Note: Comparable peers include public banks +/- 20% CIVB’s asset size in Ohio and contiguous states. Loan Mix Total Gross Loans: $1.6 billion 2018 Loan Yield: 5.04% CRE to RBC ratio: 289.9% Y
Slide 13: Peer Leading FTE Net Interest Margin
Peer Leading FTE Net Interest Margin Source: SNL Financial. 2018 Peer data as of 12/31/2018, or the latest available date. Note: Comparable peers include public banks +/- 20% CIVB’s asset size in Ohio and contiguous states.
Slide 14: Effectively Managing Assets & Liabilities
Effectively Managing Assets & Liabilities Assets Asset duration of less than two years Encourage variable-rate commercial lending or swap into variable, if appropriate Generally limit fixed-rate terms to five years Sell fixed-rate mortgages Sold 74% of mortgage loans originated in 2018 Liabilities L
Slide 15: Fee Income / Operating Efficiencies
Fee Income / Operating Efficiencies Source: Company Management. 1 Page 22 shows 2018 noninterest income adjusted for merger related expense. 2 Page 23 shows 2018 ratio adjusted for merger related expense. Efficiency Ratio 2 Noninterest Income / Average Assets 1 Fee income platform YTD Service charge
Slide 16: 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 1 / Average Loans Loan Loss Reserves / Gross Loans NPAs & 90+PD / Assets Loan Loss Reserves / Gross Loans Nonaccrual & 90 days Past Due2 / Gross Loan
Slide 17: Profitability & Returns Analysis
Profitability & Returns Analysis Source: Company Management and SNL Financial. 1 LTM 2 Pages 21 - 24 show 2018 ratios adjusted for merger related expense Diluted Earnings per Share 2 ROAE 2 ROAA 2 Net Income Available to Common Shareholders 2
Slide 18: Capital Position
1 Illustrates CIVB’s capital position if all of the convertible preferred equity issued on 12/19/2013 (coupon: 6.5%, initial conversion price: $7.82) was converted into common equity. Note: these shares may be converted to common shares on or after 12/19/19. 2 TCE Non-GAAP reconciliation on page 24.
Slide 19: Operating Results
Source: Company Management and SNL Financial. Operating Results
Slide 20: Compelling Investment Opportunity
Compelling Investment Opportunity Strong asset quality Proven acquirer Completed 7 acquisitions since the formation of the holding company in 1987, including the acquisition of United Community Bancorp, which closed on September 14, 2018 Peer leading NIM Low cost deposits – 45 bps lower than peers H
Slide 21: Non-GAAP Information
CIVISTA BANCSHARES, INC. Non-GAAP Information (Ss in thousands, except per share data) Actual — Merger and adjusted Q4 2018 items Q4 2018 Net Interest Income $20,745 $0 $20,745 $14,563 Provision for Loan Losses 390 0 390 ° Noninterest Income 4,838 27 4,865 3,630 Noninterest Expense 16,391 (782) 15,6
Slide 22: Non-GAAP Information
CIVISTA Non-GAAP Information BANCSHARES, INC. ($s in thousands, except per share data) Adjusted 2018 Net Interest Income $66,107 so $66,107 $54,502 Provision for Loan Losses 780 0 780 OC) Noninterest Income 18,131 413 18,544 16,334 Noninterest Expense 66,679 (12,735) 53,944 48,604 Net Income/(Loss)
Slide 23: Non-GAAP Information
CIVISTA Non-GAAP Information (8s in thousands) Adjusted Efficiency ratio Noninterest expense (GAAP) $ 66,679] $ 48,604 ‘Acquisition and integration expense (12,735) ‘Adjusted noninterest expense 53,944] 48,604 Net interest income (GAAP) 66,107] 54,502 Effect of tax-exempt income 4,062 4.744 ‘Adjuste
Slide 24: Non-GAAP Reconciliation
> CIVISTA Non-GAAP Reconciliation BANCSHARES, INC. ($s in thousands, except per share data) As of and for the Years Ended December 31, 2014 2015 2016 Tangible Common Equity Total Equity $ 128,376 $ 115909 $ 125,173 $ 137,616 $ 184,461|$ 298,898 Less: Preferred Equity 46,316 23,132 22,273 18,950 17,3
Slide 25: Thank You
Thank You