Civista Bancshares, Inc. · NASDAQ:CIVB
Civista Bancshares — First Citizens Banc — Shareholder Meeting (April 2013)
42 slides from Civista Bancshares's shareholder meeting presentation, Apr 18, 2013
Slide 1: Welcome to the Twenty-sixth Annual Meeting of Shareholders
Exhibit 99 Welcome to the Twenty-sixth Annual Meeting of the Shareholders of First Citizens Banc Corp. This is Management’s Presentation given at this meeting.
Slide 2: Cautionary statement on forward-looking statements
cautionary of reasonable, presentation, law1995. forward-looking statement actual and first results regarding citizens or statements future banc forward-looking events corp are subject assumes could differ, to information no numerous duty possibly to update comments assumptions, materially, any made
Slide 3: Financials
financials
Slide 4: Our five last years: company size and total assets
Our five last regulators. totalyears. assets,We which kept generally the company consist at this of cash, size toinvestments, control the and impact loans, of the were risks $1,137,000,000 of the world during at the end the of recession the year.and Wetohave maintain managed our capital the sizerati
Slide 5: Loans and cash flow during the recession
While recession approximately may – we see want weorour have to hear, be loans $12 managed awe lender to were are $14 making not the $767 million atotal partner, million. loans. assets a month And and Atofyear in Cash the – we payments company end flow have 2012 –not and ability at werelaxed amaturi
Slide 6: Five-year loan growth versus peer group
Hereeconomy Through the portfolio. is a 2009 five-year Thebegan results and 2010, chart toofrecover this of netloan positioning loan and growth growth as a result for can stopped us, be ofaseen the peer asinvestment in the group 2012 economic of with 22 weour midwest recession made loaninpositive ba
Slide 7: Deposit growth and core deposits
Deposits have and deposit they grown customers. are from generally our raw 15%materials. non-interest of the total Since deposits bearing. 2008 inour When 2008 deposits rates to 22% do have move, of grown totalcore deposits $116,000,000 deposits in 2012. willtobe Core over a very deposit $900dear mi
Slide 8: Capital and regulatory capital ratios
Assets after ratio recession, dividends to(generally thethere national that are cash, ahave peer number loans, group. accumulated of andWe regulatory investments) have over been plans thepretty last minus being 129 much liabilities circulated years. in line Risk-based (generally to with require ourc
Slide 9: Well capitalized policy minimum
This is a minimum. Our policy has been to operate under the definition of “well capitalized” which is 10%.
Slide 10: Risk based capital ratio and stress testing
You feel and now have interpret that probably atthem, our current heard will require, oflevels capital in of time, stress capital, atests risk wethat based could arecapital withstand performed ratio another for of 12.5% thecollapse big. nationwide of the economy banks. While and remain we arewell no
Slide 11: Caution on distributing capital in dividends
Becauseitofprudent believe this, we toare paygoing it off.to remain cautious on distributing capital in the form of dividends and why we may replace our preferred stock with a similar or another form of capital, but we don’t
Slide 12: Interest expense and core deposits
Looking assets gathering is the fact hasatless that been theexpensive interest components traditionally expense core of less deposits. earnings, isthan closethe to By wenational the focusing start floor with peer and onour group. core there raw deposits will You material becan very wealso ofhope lit
Slide 13: Return on earning assets and rate environment
When also tightens see weon upgather the rates. graph, deposits, the impact we put of those the current funds torate workenvironment. in loans andIninvestments. 2008 our return Traditionally, on earningour assets interest wasincome over 6%. onThis the earning has fallen assets to about has been 4 1/
Slide 14: Net interest margin
aThe strong end interest result ofmargin. gathering Falling deposits ratesand tend putting to be the great moneyequalizer, to work is butnet weinterest still enjoyed margin.a quarter Becausepoint our interest advantage expense at theisend slightly of 2012. lessThis thanequates peer and toincome abou
Slide 15: Net interest income per share
By converting into interest the income. recovery, ourwe nethave interest consistently margin togenerated earnings per approximately share, you can $5.25 seetohow $5.30 ourper margin shareimpacts of net interest you. From income. this This graphdemonstrates you can see that for through the last good
Slide 16: Noninterest income
We provide we increase supplement noninterest a solid ourdependable net income interest byservice almost incomeand 15 with cents should various perbeshare sources compensated since of 2010. noninterest for the services income.we This provide. can beAs trust thefees, economy service has charges, impr
Slide 17: Wealth management as a noninterest income source
One example grown support toand over feed of $400,000,000 aoff noninterest each other inincome managed in strengthening source money is our customer contributing wealth relationships management revenue of—- department. more andthan generating $2,000,000 In 2002revenue weaacquired year. forBut thisfr
Slide 18: Noninterest income compared to peers
In national peer noninterest income comparisons to assets was we tend .99%tocompared run slightly to the lessgroup than our at .97%. peers. In rural markets, the landscape for fees is not quite the same as the urban areas. Looking at our peers in just the midwest our
Slide 19: Core noninterest expense
If you but teambeginning with backdiverse outinFDIC 2010 experience premium we added that and experienced will collection carry this lenders, expenses, company wealth our well core management, into noninterest the future. and expense supportisstaff comparable to be prepared to 2008. forWe thereduced
Slide 20: Noninterest operating expense versus peers
Our noninterest operating expense, expenses the offset haveis always a largerbeen baseslightly of low cost greater corethan deposit peer.accounts. For the most part this is the cost of operating more offices in the rural communities. While operating more offices creates more
Slide 21: Loan loss reserve
The greatest reserve. probably against Regardless, loans Itseen was these impact that closer ourloans have solid totoearnings collateral $25,000,000 were core made earnings over deficiencies. tointo the people that last the allowed five reserve. and years businesses usIn tohas my dobeen this mind, i
Slide 22: Reserve example and collateral shortfall
Our reserve customers. where Let’s Example required say there to weWe obtain is for made adon’t loan collateral aanew loss, $2.1 wantappraisal million the shortfall. their dollars business loan which Until being against or now the held home, loan values property forimproves sopotential if thethey wo
Slide 23: Other Real Estate Owned
Another bank We would owns. way prefer Our to look total to work at at how year with we end customers attempt was approximately tothan workto with take$400,000. aback customer property While is through that thatweseems Other have like toReal maintain a lot Estate of money, and Owned. attempt ifOther
Slide 24: Earnings and pre-tax pre-provision return
Addingforup earnings needs capacity, the thefirst components, quarter was veryof close we 2013come to have the tofinally national the bottom reduced peer line. numbers. dramatically. For 2012, Theour major pre-tax difference return is onthe assets amount was we in the placed middle intoofthe therese
Slide 25: Issues affecting Ohio banking for the next year
Here are some of the issues affecting Ohio banking for the next year.
Slide 26: Ohio unemployment continues to decrease
Unemployment has continued to decrease in Ohio. While not at the pre-recession levels, it has continued to come down. This has had a positive impact on business and our customer base.
Slide 27: Unemployment claims down to pre-recession levels
We also see improvement in average monthly unemployment claims, which are now down to pre recession levels.
Slide 28: Ohio economy and housing
Whilehave business Fortunately, does wewas see anweimpact based general wereon on never improvement single the Ohio very family active economy. inhousing. the in single economyfamily and housing some return projects in commercial so we avoided construction, substantialsingle lossesfamily from housin
Slide 29: Interest rate environment and expenses
You arethere means environment just as isuntil little aware 2015 room as or wefor unemployment are future of the expense interest drops relief. rate toenvironment. 6%. The banking Here industry is aisgraph hitting of the our floor interest on expenses deposit rates. compared To thetobest theoftwo ou
Slide 30: Interest income compared to Prime Rate
Compared to Prime Rate r 08 Jan-10 Jan-11 Jan-12 While our deposit costs may be coming to the floor, there is continued pressure on what we can earn putting those deposits to work. Here is a graph of our interest income plotted against the prime rate. Prime dropped to 3.25% in 2008 and has remained
Slide 31: Strategy
strategy
Slide 32: Management teams and relationship building
Theeconomy Over management, focused the Teams theon lasttaking aretwo were and In years Place. wealth care picking of wemanagement the up have rank faster, acquired andbutfile arethe talented working deposit teams people customers are as aincohesive, place withand diverse andwatching interactive we
Slide 33: Diversifying into urban areas
Stayformula Our diversifying with theinto has Formula. been the urban to attract areaslow around cost Akron core deposit and Columbus relationships we have in rural beenareas. able We to take put advantage as much ofofthat their money moretorobust work economic as we can recovery in those areas. and
Slide 34: Commercial lending growth in Akron and Columbus
You can relationships. bank service see from model, These thislenders which, chart the coupled came increase from withthe intheir commercial larger existing institutions relationships, lendingwith in the diverse has Akron been backgrounds and a win Columbus for and all. markets. skills andOver a des
Slide 35: Diversified loan portfolio in urban markets
This can past. portfolio. By having be seendiversified more graphically into more with urban thesemarkets, pie charts. we The havetraditional been able markets, to participate whichinremain the economic the bulkrecovery of the company, quicker. The are evolving new markets but don’t now represent pr
Slide 36: Remaining asset sensitive to rates
Remain We years, rates. believe weAsset sell that long-term Sensitive. rates willfixed go uprate so mortgages, we are avoiding and we long-term stay short rate term commitments. on investments. We encourage We regularly andmonitor make pricing our rate attractive risk andfor manage variable therates
Slide 37: Duration and interest rate risk
1/rate years. If we expect rates toout rise, we need to A measure months. to do asset The move enjoy Iwe because duration other faster the use am is benefit. half than of twoto cost the manage pointing whenyears. and rates this Our equation side. monitor doout peers isThis the is interest increase t
Slide 38: Smaller banks, regulation and two opportunities
Look Smaller Two billion of regulation billion for dollars banks Opportunities. dollars and is looking acompliance good is the for target. new exitand one strategy Wethe billion believe need – compliance dollars our for efficiency model in efficient example of attracting willsize bring Ten solid ban
Slide 39: Positioned to take advantage of the recovering economy
I have seentobanking positioned take advantage articles that of the talkrecovering about surviving economy, the recession and we areand looking questioning for growth how opportunities. do you survive the recovery. We believe we have the team in place, we have a formula that works, we are
Slide 40: Stock performance versus bank indexes
And on larger several a positive Ohionote, banks. there Ourfinally stockappears has returned to be well increased in comparison. market recognition As the stock of community value is recognized bank stocks. in theHere market, is thewe last aretwo in ayears better ofposition our stock tocompared look
Slide 41: Questions
questions
Slide 42: First Citizens Banc Corp shareholders meeting: moving you ahead
first citizens banc corp shareholders meeting moving you ahead
First Citizens Banc — Shareholder Meeting (April 2013) on 6ix