Civista Bancshares, Inc. · NASDAQ:CIVB
Civista Bancshares — Q3 2017 Earnings Presentation
24 slides from Civista Bancshares's earnings presentation, Nov 7, 2017
Slide 1: Investor Presentation Third Quarter 2017
Investor Presentation Third Quarter 2017 James O. Miller - Chairman, President & Chief Executive Officer Dennis G. Shaffer - Executive Vice President & President of Civista Bank Richard J. Dutton - Senior Vice President, Chief Operating Officer NASDAQ: CIVB Exhibit 99.1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This material and any oral presentation that may accompany it contain, and future oral and written statements of the Company and its management may contain, forward-looking statements, within the meaning of such term in the Private Securities Litigation Reform Act of 1995,
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 9th Largest Publicly Traded Commercial Bank Headquartered in Ohio Community Banking Focused Operations in 12 Ohio Counties 1 27 Branches & 2 Loan Production Offices Operations in 4 of the 5 largest Ohio MSAs Franchise Poised for Acquisitions and Org
Slide 5: Experienced Management Team
Experienced Management Team Chairman, President & CEO 43 years of banking experience Joined in 1986 James O. Miller SVP & Chief Operating Officer 31 years of banking experience Joined in 2007 Richard J. Dutton SVP & Chief Lending Officer 29 years of banking experience Joined in 2016 Charles A. Parch
Slide 6: Branch Footprint
Branch Footprint Note: Market share information as of June 30, 2017. Sandusky / Akron / Cleveland, Ohio $707 million in loans $741 million in deposits 12 locations #1 deposit market share in Sandusky, Ohio with ~ 50% market share North Central Ohio $84 million in loans $182 million in deposits 7 loc
Slide 7: Attractive Target Markets
Attractive Target Markets North Central Ohio West Central Ohio Greater Dayton Ohio Sandusky / Akron / Cleveland Development Opportunity - Toledo
Slide 8: 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 (16 bps total cost of deposits) Generate loans in select growing urban markets (operations in 4 of the 5 larges
Slide 9: Financial Highlights
Financial Highlights Source: Company Management and SNL Financial. 1 Page 22 shows 2016 ratios adjusted for nonrecurring recovery 2 Non-GAAP reconciliation on page 23.
Slide 10: Increasing Shareholder Value
Increasing Shareholder Value Source: Company management and SNL Financial. 1 LTM basis 2 Non-GAAP reconciliation on page 23. Tangible Book Value per Share2 Diluted EPS
Slide 11: Proven Acquirer & Attractive Organic Growth
Proven Acquirer & Attractive Organic Growth Source: Company Management and SNL Financial. Completed 6 acquisitions since the formation of the holding company in 1987 Expanded commercial loan growth in Columbus, Cleveland, Akron and Dayton markets Since year-end 2011, loan portfolios in these markets
Slide 12: Deposit Mix and Cost of Deposits vs. Peers
Source: Company Management and SNL Financial. 2017 Peer data as of 9/30/2017, or the latest available date. Note: Comparable peers include Management selected public banks located in PA, IN, WV, MI, OH, and WI with total assets between $1.0 billion and $2.0 billion. Deposit Mix Total Deposits: $1.2
Slide 13: Loan Mix and Loan Yield vs. Peers
Source: Company Management and SNL Financial. 2017 Peer data as of 9/30/2017, or the latest available date. Note: Comparable peers include Management selected public banks located in PA, IN, WV, MI, OH, and WI with total assets between $1.0 billion and $2.0 billion. Loan Mix Total Gross Loans: $1.1
Slide 14: Peer Leading FTE Net Interest Margin
Peer Leading FTE Net Interest Margin Source: SNL Financial. 2017 Peer data as of 9/30/2017, or the latest available date. Note: Comparable peers include Management selected public banks located in PA, IN, WV, MI, OH, and WI with total assets between $1.0 billion and $2.0 billion.
Slide 15: Effectively Managing Assets & Liabilities
Effectively Managing Assets & Liabilities Assets Asset duration of less than two years Sell fixed-rate mortgages Encourage variable-rate commercial lending or swap into variable, if appropriate Generally limit fixed-rate terms to five years Liabilities Liability duration greater than three years Foc
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 / Average Loans Loan Loss Reserves / Gross Loans NPAs & 90+PD / Assets Loan Loss Reserves / Gross Loans Nonaccrual & 90 days Past Due2 / Gross Loans
Slide 17: Fee Income / Operating Efficiencies
Fee Income / Operating Efficiencies Source: Company Management. Efficiency Ratio Non-Interest Income / Average Assets Fee income platform Service charges on deposit accounts were $3.6 million and $3.7 million YTD 2017 and 2016, respectively Mortgage Banking Gain on sale of loans, primarily mortgage
Slide 18: Profitability & Returns Analysis
Profitability & Returns Analysis Source: Company Management and SNL Financial. 1 LTM basis 2 Page 22 shows 2016 ratios adjusted for nonrecurring recovery Diluted Earnings per Share ROAE 2 ROAA 2 Net Income Available to Common Shareholders
Slide 19: 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: $7.82) was converted into common equity. 2 TCE Non-GAAP reconciliation on page 23. Capital Position
Slide 20: Operating Results
Source: Company Management and SNL Financial. Operating Results
Slide 21: Compelling Investment Opportunity
Compelling Investment Opportunity Strong asset quality Proven acquirer Completed 6 acquisitions since the formation of the holding company in 1987 Peer leading NIM Low cost deposits – 18 bps lower than peers High yield loan portfolio – 18 bps higher than peers Experienced management team with an ave
Slide 22: Civista Non-GAAP Information
CIVISTA Non-GAAP Information BANCSHARES, INC. ($s in thousands, except per share data) Actual Recovery — Adjusted, Net interest Income $50,259 (8919) $49,340 $52,497 Provision for Loan Losses (1,300) 4,300 ° 0 Noninterest Income 16,132 0 16,132 15,847 Noninterest Expense 43,855 0 43,855 46,920 Net I
Slide 23: Civista Non-GAAP Reconciliation
CIVISTA Non-GAAP Reconciliation BANCSHARES, INC. ($s in thousands, except per share data) As of and for the Years Ended December 31, 2013 2014 2015 ‘Tangible Common Equity Total Equity $ 103,980 $ 128,376 $ 115,909 $ 125,173 $ 137,616 /$ 181,981 Less: Preferred Equity 23,184 46,316 23,132 22,273 18,
Slide 24: Thank You
Thank You