Civista Bancshares, Inc. · NASDAQ:CIVB
Civista Bancshares — Q2 2021 Earnings Presentation
40 slides from Civista Bancshares's earnings presentation, Jul 23, 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 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 3
Slide 4: Who We Are
Who We Are 4
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
Slide 6: Who We Are: Markets and Locations
Who We Are Sandusky/Norwalk/Port Clinton, Cleveland/Akron, Ohio Ohio 9 Locations 3 Locations $498 million in loans $611 million in loans $967 million in deposits $143 million in #1 deposit market share in Sandusky, deposits Ohio with ~51% market share Columbus & West Central, Ohi
Slide 7: Who We Are
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 Discipl
Slide 8: Who We Are: Management Team
Who We Are Dennis G. Shaffer Charles A. Parcher Richard J. Dutton CEO & President SVP & Chief Lending SVP & Chief Operating Officer Officer President, Civista Bank 33 years of banking 35 years of banking 35 years of banking experience experience experience Joined in 2016 Joined in
Slide 9: Who We Are: Awards
Ww CIVISTA Who We Are BANCSHARES, INC. BEST EMPLOYERS IN OHIO} 2021 CRAIN'S CLEVELAND BUSINESS MULTI- YEAR WINNER 2021 te 2020 *% 2019 2021 fy)iversityJobs EMPLOYER MEMBER
Slide 10: Current Initiatives
» CIVISTA BANCSHARES, INC. 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 June 30, 2021: $s in thousands $s in thousands % of Loans % of Loans Loan Category Balanc
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 $6.6 million in fees Provided assistance to more than 3,500 businesses and their ove
Slide 13: Current Initiatives: Leveraging Technology
Current Initiatives Leveraging Technology Enhance utilization of technology to improve efficiency and customer experience – Curbside banking – E‐Sign – Digital Transformation – rollout June 9, 2021 Enhanced Treasury Management Services and Reporting Anticipated rollout Q4 2021 ‐ Improved in‐
Slide 14: Current Initiatives: Civista Digital Banking
Current Initiatives Civista Digital Banking 14
Slide 15: Financial Trends
Financial Trends 15
Slide 16: Financial Highlights
Financial Trends Financial Highlights ($s in thousands, except per share data) June 30, June 30, 2021 2020 % Change Balance Sheet Assets $2,924,643 $2,812,153 4.00% Gross Loans (excluding HFS) 1 2,019,196 2,022,965 (0.19%) Deposits 2,402,992 2,069,261 16.13% June 30, June 30, 2021 2020 % Change Perf
Slide 17: Total Assets
Financial Trends Total Assets1 ($ in millions) $2,925 $2,763 $2,310 $2,139 $1,526 $1,377 2016 2017 2018 2019 2020 2021 Q2 1. 2018 includes $578 million in assets due to United Community Bancorp acquisition 17
Slide 18: Total Gross Loans
Financial Trends Total Gross Loans1 ($ in millions) $2,057 $2,019 $1,709 $1,562 $1,165 $1,056 2016 2017 2018 2019 2020 2021 Q2 1. 2021 includes $153.0 million of PPP Loans. 2020 includes $217.3 million of PPP loans. 2018 includes $299 million in loans due to United Community Bancorp acquisition. 18
Slide 19: Loan Mix
FinancialTrends Loan Mix ($ in millions) Total Gross Loans: $2.0 billion CRE to RBC Ratio: 331.3% 19
Slide 20: Asset Quality and Loan Loss Reserves
Financial Trends Nonaccrual NPAs & 90 days & 90+PD Past/Due 2 / Gross Loans Assets Loan Loss Reserves / Gross Loans 0.66% 1.26% 1.30% 1.22% 0.57% 1.13% 0.53% 0.50% 0.88% 0.86% 0.34% 0.28% 2016 2017 2018 2019 2020 2021 Q2 2016 2017 2018 2019 2020 2021 Q2 Reserves / NPLs NCOs / Average Loans 0.02% 0.0
Slide 21: Total Deposits
Financial Trends Total Deposits1 ($ in millions) $2,403 $2,189 $1,679 $1,580 $1,205 $1,121 2016 2017 2018 2019 2020 2021 Q2 1. 2018 includes $476 million in deposits due to United Community Bancorp acquisition 21
Slide 22: Deposit Mix
Financial Trends Deposit Mix Total Deposits: $2.4 billion Loan/Deposit Ratio: 80.6%1 36% Noninterest Bearing Demand Deposits are 75% Commercial and 25% Retail Cost of Cost of Year Deposits Funding 2016 0.20% 0.26% 2017 0.19% 0.46% 2018 0.28% 0.73% 2019 0.48% 0.68% 2020 0.33% 0.43% Q2 2021 0.19
Slide 23: Cost of Deposits and Yield on Loans vs Peers
Financial Trends Total Cost of Deposits (%) 0.93% 0.93% 0.71% 0.71% 0.66% 0.48% 0.47% 0.48% 0.43% 0.32% 0.33% 0.29% 0.28% 0.29% 0.23% 0.20% 0.19% 0.19% 2016Y 2017Y 2018Y 2019Y 2020Y 2021 Q2 CIVB Peer Median Peer Top Quartile Yield on Loans (%) 5.42% 5.42% 5.27% 5.27% 5.04% 4.91% 5.17% 5.09% 5.09%
Slide 24: Net Interest Margin
Financial Trends Net Interest Margin 4.31% 4.21% 3.93% 4.01% 3.79% 3.86% 3.81% 3.75% 3.69% 3.70% 3.70% 3.61% 3.66% 3.48% 3.47% 3.53% 3.53% 3.34% 2016Y 2017Y 2018Y 2019Y 2020Y 2021 Q2 CIVB Peer Median Peer Top Quartile 2021 peer data as of 6/30/2021, or the latest available date. Note: Comparable pee
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 $2.6 million YTD 2021 and $2.4 million YTD 2020 Continued focus on review of branch network Mortgage Banking – Two branch c
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 Authorized $
Slide 27: Providing Shareholder Value
Providing Shareholder Value 27
Slide 28: Net Income & Earnings Per Share
Providing Shareholder Value Net Income & Earnings Per Share (Available to Common) ($ in millions) 1. LTM basis 2. Page 39 shows 2018 ratios adjusted for merger related expenses 28
Slide 29: Shareholders' Equity & Return on Tangible Equity
Providing Shareholder Value Total Shareholders’ Equity & Return on Tangible Equity ($ in millions) 1. LTM basis 2. Non‐GAAP reconciliation on page 36 29
Slide 30: Tangible Book Value per Share
Providing Shareholder Value Tangible Book Value per Share1 $17.50 $16.82 $14.77 $13.68 $13.14 $10.84 2016 2017 2018 2019 2020 2021 Q2 1. Non‐GAAP reconciliation on page 36 30
Slide 31: Why Civista?
Why Civista? 31
Slide 32: Experienced Acquirer & Organic Growth Model
Why Civista? Experienced Acquirer & Organic Growth Model Completed 3 acquisitions since 2007, including the acquisition of United Community Bancorp, which closed September 14, 2018 Expanded commercial loan growth in Columbus, Cleveland, Akron, Dayton and Cincinnati markets – Since year‐end 2015,
Slide 33: Compelling Investment Opportunity
Why Civista? Compelling Investment Opportunity Community bank franchise poised for acquisitions and strong core deposit franchise Strong capital position Strong credit culture and asset quality Experienced acquirer Continued strong NIM Experienced management team with an average of 29 ye
Slide 34: Additional Information
Additional Information 34
Slide 35: Operating Results
Operating Results ($s in thousands, except per share data) LTM Q2 2016 2017 2018 2019 2020 2021 Net Interest Income $50,259 $54,502 $66,107 $85,100 $89,727 $93,206 Provision for Loan Losses (1,300) 0 780 1,035 10,112 5,330 Noninterest Income 16,132 16,334 18,131 22,443 28,182 32,666 Noninterest Expe
Slide 36: Non-GAAP Reconciliation
Non‐GAAP Reconciliation ($s in thousands, except per share data) As of and for the Years Ended December 31, 2016 2017 2018 2019 2020 2021 Q2 Tangible Common Equity Total Shareholder's Equity - GAAP $ 137,616 $ 184,461 $ 298,898 $ 330,126 $ 350,108 $ 352,413 Less: Preferred Equity 18,950 17,358 9,364
Slide 37: Non-GAAP Reconciliation
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 No
Slide 38: Non-GAAP Reconciliation
Non‐GAAP Reconciliation ($s in thousands) YTD 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 (1,785) Adjusted Non-i
Slide 39: Non-GAAP Reconciliation
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 40: Thank You
Thank You 40