Civista Bancshares, Inc. · NASDAQ:CIVB
Civista Bancshares — Q2 2015 Earnings Presentation
28 slides from Civista Bancshares's earnings presentation, Jul 28, 2015
Slide 1: Investor Presentation Second Quarter 2015
Investor Presentation Second Quarter 2015 Dennis G. Shaffer - Executive Vice President & President of Civista Bank Richard J. Dutton - Senior Vice President, Chief Operating Officer Exhibit 99.1
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements Comments made in this presentation include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to numerous assumptions, risks and uncertainties. Although management believes that
Slide 3: Contact Information
3 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 1/40 th ownership interest in a Series B Preferred Share, are traded on the NASDAQ Capital Market under the symbol “CIVBP
Slide 4: Corporate Overview
4 ¹ Market data as of July 10, 2015. Corporate Overview Key Facts Corporate Rebranding Corporate Overview th Largest Publicly Traded Commercial Bank in Ohio Community Banking Focused Operations in 11 Ohio Counties – 27 Branches & 1 Loan Production Office Operations in Stable Ohio Markets Acquisitive
Slide 5: Financial Highlights
5 Financial Highlights ($s in thousands, except per share data) June 30, 2015 June 30, 2014 % Change - Tangible book value excludes Goodwill and other intangible assets from the book value calculation - ROATCE equals annualized net income, adjusted for amortization of intangibles, divided by average
Slide 6: Investment Highlights
6 Investment Highlights Experienced management team with strong track record Leading Ohio community bank franchise focused on rural and targeted urban markets Demonstrated organic growth and proven acquirer – Opened Loan Production Office on east side of Cleveland (Mayfield Heights) in 2015 Q1 – Com
Slide 7: Experienced Management Team
7 James O. Miller James E. McGookey Paul J. Stark John A. Betts Todd A. Michel Richard J. Dutton Dennis G. Shaffer Experienced Management Team Chairman, President & CEO 42 years of banking experience Joined in 1987 SVP & Chief Operating Officer 29 years of banking experience Joined in 2007 EVP, Chie
Slide 8: Branch Footprint
8 Note: Branch information as of June 30, 2015. Branch Footprint Sandusky / Akron / Cleveland, Ohio $567 million in loans $614 million in deposits 11 branch locations #1 deposit market share in Sandusky, Ohio with ~ 43% market share North Central Ohio $93 million in loans $179 million in deposits br
Slide 9: Attractive Target Markets
9 Attractive Target Markets Sandusky / Akron / Cleveland North Central Ohio West Central Ohio Greater Dayton Ohio
Slide 10: Proven Acquirer & Attractive Organic Growth
10 Total Deposits Total Gross Loans Total Assets Proven Acquirer & Attractive Organic Growth Acquired six banks from 1998 – 2015, serving to increase assets by over $800 million Expanded commercial loan growth in Columbus, Cleveland, Akron and Dayton markets – Since year-end 2010, loan portfolios in
Slide 11: Acquisitive Franchise Positioned for Future Growth: TCNB
11 TCNB Financial Corp. Citizens National Bank of Southwestern Ohio Acquisitive Franchise Positioned for Future Growth TCNB Transaction Highlights Closed and integrated in March 2015 Single Bank Holding Company & Bank Organized in 1999 Total Assets of $105 million Expands Civista’s Presence into the
Slide 12: Why Rebrand?
12 Why Rebrand? Successful Rebranding Brand Differentiation 316 “Citizens” Banks in the United States 16 “Citizens” Banks in Ohio Alone Citizens / Champaign Bank Branding Confusing for Existing Customers Avoid Customer Identity Confusion on the Internet NASDAQ: CIVB
Slide 13: Deposit Mix
13 Financial information as of June 30, 2015. Non-Interest Bearing Demand 33% Interest Bearing Demand 12% Certificates of Deposit 17% Deposit Mix Q2 2015 Cost of Interest Bearing Deposits: 0.27% Total Deposits: $1.1 billion Savings 33% Brokered Deposits 5%
Slide 14: Loan Mix
14 Financial information as of June 30, 2015. CRE Non-Owner Occupied 26% CRE Owner Occupied 17% C&I 12% Loan Mix Q2 2015 Loan Yield: 4.56% Total Gross Loans: $1.0 billion Single Family 23% Multi-family 7% Farmland & Agriculture 6% C&D & Land 7% Consumer & Other 2%
Slide 15: Improving Asset Quality
15 Reserves / NPLs NCOs / Average Loans Loan Loss Reserves / Gross Loans NPAs & 90+PD / Assets Loan Loss Reserves / Gross Loans NPAs & 90+PD / Assets Improving Asset Quality 3.16% 3.51% 3.32% 2.22% 1.57% 1.29% 2010 2011 2012 2013 2014 2015 Q2 2.84% 2.70% 2.42% 1.92% 1.56% 1.47% 2010 2011 2012 2013 2
Slide 16: Asset Quality Improvement
16 NPAs & 90+ Days Delinquent as of 6/30/2015 NPAs & 90+ Days Delinquent as of 12/31/2010 Asset Quality Improvement Gross Loans: $767 million Gross Loans: $1.0 billion - Nonaccrual Loans Current, $7.6 Nonaccrual Loans - Past Due, $5.3 Restructured Loans, $3.6 OREO, $0.5 Nonaccrual Loans - Current, $
Slide 17: Peer Leading Net Interest Margin
17 Source: SNL Financial. Comparable peers represents banks located in Ohio, Indiana, and Kentucky with total assets between $1.0 billion and $5.0 billion; excludes merger targets. 2015 Peer margin is as of March 31, 2015. Peer Leading Net Interest Margin 3.94% 4.00% 3.98% 3.79% 3.79% 3.81% 3.88% 3.
Slide 18: Effectively Managing Duration
18 Effectively Managing Duration Asset duration of less than two years – Sell fixed rate mortgages – Encourage variable rate commercial lending or swap into variable, if appropriate – Limit fixed rate terms to five years Liability duration greater than three years – Focus on low-cost “sticky” demand
Slide 19: Non-Interest Metrics & Initiatives
19 Efficiency Ratio Non-Interest Income / Average Assets ¹ From AB Magazine, November © 2014 SourceMedia, Inc.. All rights reserved. Used by permission and protected by the Copyright Laws of the United States. The printing, copying, redistribution, or retransmission of this Content without expressed
Slide 20: Profitability & Returns Analysis
20 ¹ LTM basis. Diluted Earnings per Share ROATCE ROAA Net Income Available to Common Shareholders Profitability & Returns Analysis $(2,444) $2,782 $4,386 $5,020 $7,655 $9,261 2010 2011 2012 2013 2014 2015 Q2¹ -0.11% 0.35% 0.49% 0.53% 0.77% 0.93% 2010 2011 2012 2013 2014 2015 Q2 $(0.32) $0.36 $0.57
Slide 21: BANCSHARES, INC.
BANCSHARES, INC.
Slide 22: Increasing Shareholder Value
22 Source: SNL Financial. Market Data as of June 30, 2015. ¹ Comparable peers represents banks located in Ohio, Indiana, and Kentucky with total assets between $1.0 billion and $5.0 billion; excludes merger targets. Stock Price Increasing Shareholder Value Dividend yield of 1.85% Dividend payout rat
Slide 23: Commitment to Shareholders
23 Commitment to Shareholders Long-term Shareholder Value through Growth and Profitability
Slide 24: Strategic Focus & Growth Strategy
24 Strategic Focus & Growth Strategy Organic growth – Capitalize on commercial and consumer lending opportunities – Grow core deposit base in rural and targeted urban markets – Identify and evaluate loan production opportunities in select metro markets Acquisition opportunities – Rural – Urban Asset
Slide 25: Why Invest in CIVB?
25 Strong and Seasoned Management Team Attractively Valued Versus Peers Leading Ohio Community Banking Franchise Platform to Support Future Growth Proven and Disciplined Acquirer Why Invest in CIVB?
Slide 26: Appendix
Appendix
Slide 27: Slide 27
Slide 28: Thank You
Thank You