Civista Bancshares, Inc. · NASDAQ:CIVB
Civista Bancshares — Q2 2021 Earnings Presentation
40 slides from Civista Bancshares's earnings presentation, Aug 3, 2021
Slide 1: Investor Presentation Second Quarter 2021
Investor Presentation Second Quarter 2021 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: 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 9th Largest Publicly Traded Commercial Bank Headquartered in Ohio 462 Employees Community Banking Focused Operations in 12 Ohio, 2 Indiana and 1 Kentucky Counties 35 Branches & 2 Loan Production Offices Operations in the 5 largest O
Slide 6: Who We Are: Markets, Loans and Deposits
Who We Are Deposit market share information as of June 30, 2020. Sandusky/Norwalk/Port Clinton, Ohio 9 Locations $498 million in loans $967 million in deposits #1 deposit market share in Sandusky, Ohio with ~51% market share Cleveland/Akron, Ohio 3 Locations $611 million in loans $143 million in dep
Slide 7: Who We Are: Community bank franchise
Who We Are Community bank franchise in growth markets with an established operating model Gather attractive low-cost core deposits (19 bps total cost of deposits) Generate loans organically in select growing markets (operations in the 5 largest MSAs in Ohio) Strong capital position Disciplined under
Slide 8: Who We Are: Management Team
Who We Are Dennis G. Shaffer SVP & Chief Operating Officer 35 years of banking experience Joined in 2007 Richard J. Dutton SVP & Chief Lending Officer 33 years of banking experience Joined in 2016 Charles A. Parcher SVP & General Counsel 18 years of banking experience Joined in 2018 Lance A. Morriso
Slide 9: Best Employers in Ohio 2021
CIVISTA BANCSHARES, INC. BEST EMPLOYERS IN OHIO! 2021 CRAIN'S CLEVELAND BUSINESS. MULTI- YEAR WINNER 2021 % 2020 % 2019
Slide 10: Current Initiatives
DK CIVISTA Current Initiatives
Slide 11: Current Initiatives: COVID-19 Loan Modifications
Current Initiatives 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 June 30, 2021: COVID-19 Deferrals
Slide 12: Current Initiatives: SBA Paycheck Protection Program
Current Initiatives 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 their over 37,000 employees Average loan size ~$110
Slide 13: Current Initiatives: Leveraging Technology
Current Initiatives Enhance utilization of technology to improve efficiency and customer experience Curbside banking E-Sign Digital Transformation – rollout June 9, 2021 Enhanced Treasury Management Services and Reporting Anticipated rollout Q4 2021 - Improved in-branch and online account opening an
Slide 14: Current Initiatives: Civista Digital Banking
Current Initiatives Civista Digital Banking
Slide 15: Financial Trends
DK CIVISTA Financial Trends
Slide 16: Financial Trends
Financial Trends June 30, 2021 includes $153.0 million of PPP loans . Presented on an annualized basis Non-GAAP reconciliation on page 36.
Slide 17: Financial Trends: Total Assets
Financial Trends Total Assets1 ($ in millions) 1. 2018 includes $578 million in assets due to United Community Bancorp acquisition CAGR 18.2%
Slide 18: Financial Trends: Total Gross Loans
Financial Trends Total Gross Loans1 ($ in millions) 1. 2021 includes $153.0 million of PPP Loans. 2020 includes $217.3 million of PPP loans. 2018 includes $299 million in loans due to United Community Bancorp acquisition. CAGR 15.5%
Slide 19: Financial Trends: Loan Mix
Financial Trends Total Gross Loans: $2.0 billion CRE to RBC Ratio: 331.3% Loan Mix ($ in millions)
Slide 20: Financial Trends: Credit Quality and Reserves
1. LTM basis 2. Excluding PCI (purchased credit impaired loans). Financial Trends 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 21: Financial Trends: Total Deposits
Financial Trends Total Deposits1 ($ in millions) 1. 2018 includes $476 million in deposits due to United Community Bancorp acquisition CAGR 18.5%
Slide 22: Financial Trends: Deposit Mix
1. Ratio includes $153.0 million of PPP loans and $86.8 million of tax refund processing deposits Financial Trends Total Deposits: $2.4 billion Loan/Deposit Ratio: 80.6%1 36% Noninterest Bearing Demand Deposits are 75% Commercial and 25% Retail Deposit Mix
Slide 23: Financial Trends: Cost of Deposits and Loan Yield vs Peers
2021 Peer data as of 6/30/2021 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 24: Financial Trends: Net Interest Margin vs Peers
Financial Trends 2021 peer data as of 6/30/2021, 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 25: Financial Trends: Non-Interest Income and Expense
Financial Trends 1. 2018 efficiency ratio is adjusted for merger related expenses; 2021 efficiency ratio is adjusted for nonrecurring items. Page 37 and 38 show Non-GAAP reconciliations Fee income platform Service charges on deposit accounts were $2.6 million YTD 2021 and $2.4 million YTD 2020 Mortg
Slide 26: Financial Trends: Capital Management
Financial Trends 1. TCE Non-GAAP reconciliation on page 36 2. LTM basis 3. Page 39 shows 2018 ratios adjusted for merger related expenses Raised $32.8 million of capital (issued 1,610,000 shares) in February 2017 Additional $104.7 million of capital (issued 4,277,430 shares) related to UCB merger in
Slide 27: Providing Shareholder Value
Providing Shareholder Value 27
Slide 28: Net Income & Earnings Per Share
1. LTM basis 2. Page 39 shows 2018 ratios adjusted for merger related expenses Providing Shareholder Value Net Income & Earnings Per Share (Available to Common) ($ in millions)
Slide 29: Total Shareholders' Equity & Return on Tangible Equity
1. LTM basis 2. Non-GAAP reconciliation on page 36 Providing Shareholder Value Total Shareholders’ Equity & Return on Tangible Equity ($ in millions)
Slide 30: Tangible Book Value per Share
Providing Shareholder Value 1. Non-GAAP reconciliation on page 36 Tangible Book Value per Share1 CAGR 11.2%
Slide 31: Why Civista?
> CIVISTA BANCSHARES, INC. Why Civista?
Slide 32: Why Civista? Experienced Acquirer & Organic Growth Model
Why Civista? Completed 3 acquisitions since 2007, including the acquisition of United Community Bancorp, which closed September 14, 2018 Expanded commercial loan growth in Columbus, Cleveland, Akron, Dayton and Cincinnati markets Since year-end 2015, loan portfolios in these markets have increased f
Slide 33: Why Civista? Compelling Investment Opportunity
Why Civista? 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 29 years in banking Strategically positioned in att
Slide 34: Additional Information
> CIVISTA BANCSHARES, INC. Additional Information
Slide 35: Operating Results
CIVISTA Operating Results BANCSHARES, INC. (Ss in thousands, except per share data) Net Interest Income $50,259 $54,502 $66,107 $85,100 $89,727 $93,206 Provision for Loan Losses (1,300) 0 780 1,035 10,112 5,330 Noninterest Income 16,132 16,334 18,131 22,443 28,182 32,666 Noninterest Expense 43,855 4
Slide 36: Non-GAAP Reconciliation
Non-GAAP Reconciliation 1. LTM basis
Slide 37: Non-GAAP Reconciliation
CIVISTA Non-GAAP Reconciliation BANCSHARES, INC. ($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 38: Non-GAAP Reconciliation
> CIVISTA BANCSHARES, INC. Non-GAAP Reconciliation (85 in thousands) 2021 Adjusted Efficiency ratio Noninterest expense - GAAP $ 41,857 FHLB prepayment penalty (3,717) Adjusted noninterest expense 38,140 Net interest income - GAAP 48,483 Noninterest Income - GAAP 18,215 Gain on sale of Visa B shares
Slide 39: 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 40: Thank You
Thank You