Civista Bancshares, Inc. · NASDAQ:CIVB
Civista Bancshares — Q1 2024 Earnings Presentation
42 slides from Civista Bancshares's earnings presentation, May 8, 2024
Slide 1: Investor Presentation First Quarter 2024
Exhibit 99.1 Investor Presentation First Quarter 2024 Dennis G. Shaffer ‐Chief Executive Officer & President 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 Section 21E of the Securities Exchange Act of 1934, as amended. Forward‐looking statements express management’s current expectations, estimates or projections of future events, results or lon
Slide 3: Contact Information
Contact Information Ø Civista Bancshares, Inc.’s common shares are traded on the NASDAQ Capital Market under the symbol “CIVB.” Ø Additional information can be found at: Ø www.civb.com Ø Dennis G Shaffer Ø Chief Executive Officer & President Ø dgshaffer@civista.bank Ø Telephone: 888.645.4121 3
Slide 4: Who We Are
BANCSHARES, INC. Who We Are
Slide 5: Who We Are
Who We Are Ø Bank founded and headquartered in 1884 in Sandusky, Ohio th Ø 10 Largest Publicly Traded Commercial Bank Headquartered in Ohio Ø 537 Employees Ø Community Banking Focused Operations in 14 Ohio, 2 Indiana and 1 Kentucky Counties – 41 Branches & 2 Loan Production Offices – Operations in t
Slide 6: Who We Are
Who We Are Ø Northwest Ohio Ø Sandusky/Norwalk/Port Clinton, Ohio Ø 7 Locations Ø 9 Locations Ø $157 million in loans Ø $460 million in loans Ø $179 million in Ø $1,480 million in deposits deposits Ø #1 deposit market share in Sandusky, Ø 17% deposit market Ohio with ~53% share Ø Civista Leasing & Ø
Slide 7: Who We Are
Who We Are Ø Community bank franchise in growth markets with an established operating model – Gather attractive low‐cost deposits (122 bps total cost of deposits (excluding brokered)) – Generate loans organically in select growing markets (operations in the 5 largest MSAs in Ohio) Ø Strong capital p
Slide 8: Who We Are
CIVISTA Who We Are BANCSHARES, INC. Dennis G. Shaffer Richard J. Dutton. Charles A. Parcher Chief Executive Officer Senior Vice President Senior Vice President. and President Chief Operating Officer Chief Lending Officer Michael D. Mulford yu Robert L. Curry, Jr. (UR Todd A. Mit hel Lance A. Morriso
Slide 9: CIVISTA
CIVISTA BANCSHARES, INC. nly urged and spprted in ton, matchin BEST ces ~XCIVISTABANK x IN OHIO. J, Tremendous 25: #18 Best Banks woriklaces Work F that CARE © —— ted Way of Greater Cincinnati
Slide 10: Current Events
dK clvista Current Events
Slide 11: Deposits
Deposits Ø 13.1%* or $392.3 million of deposits uninsured at March 31, 2024 Ø Cash and unpledged securities of $452 million at March 31, 2024 Ø Deposits, excluding tax program and brokered deposits, increased 1.25% from December 31, 2023 to March 31, 2024 Ø Excluding $315 million of public deposits,
Slide 12: Liquidity
Liquidity Ø Strong on‐balance sheet liquidity – $452 million of cash and unpledged securities at March 31, 2024 Ø Ready access to off‐balance sheet funding – Immediate access to $1.3 billion in funding from FHLB, Federal Reserve and CDARS/IntraFi Ø Civista has not and does not anticipate using the F
Slide 13: Credit
Credit Ø Adopted CECL January 1, 2023 – $4.3 million increase in Allowance for Credit Losses – $3.4 million increase in Reserve for Unfunded Commitments Ø Credit metrics remain stable and strong – ACL to nonperforming loans was 247.06% at March 31, 2024 – ACL to loans was 1.34% at March 31, 2024 13
Slide 14: Capital
Capital Ø Civista continues to create capital through earnings Ø “Well Capitalized” by regulatory standards Ø Tangible Common Equity ratio was 6.28% at March 31, 2024 14
Slide 15: Strategic Initiatives
Strategic Initiatives Ø Revenue Improvement Ø Low/Lower Cost Funding – Ohio Homebuyer Plus Program – Identified opportunities for increased service charges • Launched May 6, 2024 • Treasury Management Fees • Potential for up to $100 million in deposits • Retail – Wealth Management Cash – Leasing Syn
Slide 16: Financial Trends
dK clvista Financial Trends
Slide 17: Financial Highlights
Financial Trends Financial Highlights ($s in thousands, except per share data) March 31, March 31, 2024 2023 % Change Balance Sheet $3,880,258 $3,685,672 5.28% Assets 1 2,898,139 2,681,180 8.09% Gross Loans (excluding HFS) 2,980,695 2,843,516 4.82% Deposits March 31, March 31, 2024 2023 % Change Per
Slide 18: Total Assets
Financial Trends 1 Total Assets ($ in millions) $3,880 $3,616 $3,538 $3,012 $2,763 $2,310 2019 2020 2021 2022 2023 2024 Q1 18 1. 2022 includes the addition of $316 million in assets due to Comunibanc Corp acquisition.
Slide 19: Total Gross Loans and Leases
Financial Trends 1 Total Gross Loans and Leases ($ in millions) $2,898 $2,861 $2,547 $2,057 $1,998 $1,709 2019 2020 2021 2022 2023 2024 Q1 19 1. 2020 includes $217.3 million of PPP loans. 2021 includes $43.2 million of PPP loans. 2022 includes $819 thousand of PPP loans as well as $169 million due t
Slide 20: Loan Mix
FinancialTrends Loan Mix ($ in millions) Ø Total Gross Loans: $2.9billion 20
Slide 21: CRE Non Owner Concentrations
FinancialTrends CRE Non Owner Concentrations ($ in millions) 21
Slide 22: Civista Leasing and Equipment Financing
FinancialTrends Civista Leasing and Equipment Financing ($ in millions) Ø 2024 YTD Production • YTD Funded: $23.2 million • Sold: $12.6 million • Net Production: $10.6 million Ø Average Yield on Total Portfolio: 8.59% Ø Average Yield on Q1 Originations: 9.95% Industry Concentrations: v Propane, Recy
Slide 23: Credit Quality Trends
Financial Trends NonaccrualNP & As 90 & da 90+PD ys Pas t/ Due Asse /ts Gross Loans Loan Loan Loss Loss Re Resse errvve ess // Gr Gross oss Loans Loans 0.54% 0.53% 0.53% 1.34% 1.30% 1.28% 1.22% 0.41% 1.08% 0.36% 0.86% 0.27% 2019 2020 2021 2022 2023 Q1 2024 2019 2020 2021 2022 2023 Q1 2024 1 Reserves
Slide 24: Total Deposits
Financial Trends 1 Total Deposits ($ in millions) $2,985 $2,981 $2,620 $2,417 $2,189 $1,679 2019 2020 2021 2022 2023 2024 Q1 24 1. 2022 includes the addition of $271 million in deposits due to the Comunibanc Corp acquisition.
Slide 25: Deposit Mix
Financial Trends Deposit Mix Ø Total Deposits: $3.0 billion Ø Loan/Deposit Ratio: 98.3% Cost of Cost of Year Deposits Funding 2019 0.48% 0.68% 2020 0.33% 0.43% 2021 0.17% 0.24% 2022 0.15% 0.39% 2023 1.19% 1.72% 2024 2.14% 2.54% 25
Slide 26: Total Cost of Deposits and Yield on Loans
Financial Trends Ø Total Cost of Deposits (%) 2.14% 2.00% 1.79% 1.64% 1.34% 1.10% 0.93% 0.93% 0.71% 0.71% 0.48% 0.33% 0.29% 0.27% 0.22% 0.22% 0.21% 0.17% 2019Y 2020Y 2021Y 2022Y 2023Y 2024Q1 CIVB Peer Median Peer Top Quartile Yield on Loans (%) 6.25% 6.20% 5.90% 5.86% 5.50% 5.42% 5.42% 5.27% 5.27% 5
Slide 27: Net Interest Margin
Financial Trends Net Interest Margin 4.31% 3.81% 3.80% 3.75% 3.74% 3.70% 3.70% 3.70% 3.66% 3.50% 3.47% 3.47% 3.45% 3.39% 3.31% 3.32% 3.22% 3.03% 2019Y 2020Y 2021Y 2022Y 2023Y 2024Q1 CIVB Peer Median Peer Top Quartile 2024 peer data as of 3/31/2024, or the latest available date. 27 Note: Comparable p
Slide 28: Non-Interest Income and Expense
Financial Trends Non‐Interest Income and Expense Ø Fee income platformØ Disciplined approach to controlling non‐interest expense – Routing overflow calls to our retail staff – Service charges on deposit accounts were $1.4 million YTD 2024 and $1.8 million YTD 2023 – Manage/reduce overtime and staffi
Slide 29: Capital Management
Financial Trends Capital Management Ø November 2021 issued $75 million in 3.25% subordinated debt Ø Authorized $13.5 million stock repurchase plan in April 2024 Ø During 2023, 84,230 shares, 0.54% of the shares outstanding on December 31, 2023, have been repurchased for $1.5 million at a weighted av
Slide 30: Providing Shareholder Value
Providing Shareholder Value 30
Slide 31: Net Income & Earnings Per Share
Providing Shareholder Value Net Income & Earnings Per Share (Available to Common) (LTM ‐$ in thousands) 1. Q1 2024 presented on LTM basis 31
Slide 32: Total Shareholders' Equity & Return on Tangible Equity
Providing Shareholder Value 1,2,3 Total Shareholders’ Equity & Return on Tangible Equity ($ in thousands) 1. LTM basis 2. Non‐GAAP reconciliation on page 39 32 3. The change in the AOCI impact of unrealized losses on the investment portfolio from 12/31/21 to 12/31/22 was $67.4 million
Slide 33: Tangible Book Value per Share
Providing Shareholder Value 1,2 Tangible Book Value per Share $18.11 $16.68 $15.10 $14.95 $14.68 $12.61 2019 2020 2021 2022 2023 2024 1. Non‐GAAP reconciliation on page 39 33 2. The change in the AOCI impact of unrealized losses on the investment portfolio on TBV/share from 12/31/21 to 12/31/22 was$
Slide 34: Why Civista?
dK clvista Why Civista?
Slide 35: Experienced Acquirer & Organic Growth Model
Why Civista? Experienced Acquirer & Organic Growth Model Ø Completed 6 acquisitions since 2007, including the acquisition of Comunibanc Corp, which closed July 1, 2022 and acquisition of Vision Financial Group, which closed October 3, 2022 Ø On June 27, 2022, opened de novo branch in Gahanna, Ohio,
Slide 36: Compelling Investment Opportunity
Why Civista? Compelling Investment Opportunity Ø Community bank franchise poised for acquisitions and strong core deposit franchise Ø Strong capital position Ø Strong credit culture and asset quality Ø Experienced acquirer Ø Continued strong NIM Ø Experienced management team with an average of 31 ye
Slide 37: Additional Information
dK clvista Additional Information
Slide 38: Operating Results
Operating Results ($s in thousands, except per share data) Q1 LTM 2019 2020 2021 2022 2023 2024 Net Interest Income $85,100 $89,727 $95,425 $110,204 $125,496 $121,267 Provision for Loan Losses 1,035 10,112 830 1,752 4,435 5,808 Noninterest Income 22,443 28,182 31,452 29,077 37,163 34,601 Noninterest
Slide 39: Non-GAAP Reconciliation
Non‐GAAP Reconciliation ($s in thousands, except per share data) As of and for the Years Ended December 31, Q1 2019 2020 2021 2022 2023 2024 Tangible Common Equity $ 330,126 $ 350,108 $ 355,212 $ 334,835 $ 372,002 $ 369,659 Total Shareholder's Equity - GAAP 85,156 84,926 84,432 136,454 135,028 134,6
Slide 40: Non-GAAP Reconciliation 2021 Adjusted Efficiency Ratio
Non‐GAAP Reconciliation ($s in thousands) 2021 Adjusted Efficiency ratio Noninterest expense - GAAP $ 78,484 FHLB prepayment penalty (3,717) Adjusted noninterest expense 74,767 Net interest income - GAAP 95,425 Noninterest Income - GAAP 31,452 Gain on sale of Visa B shares (1,785) Adjusted Non-inter
Slide 41: Non-GAAP Reconciliation YTD 2022 Adjusted Efficiency Ratio
Non‐GAAP Reconciliation ($s in thousands) YTD 2022 Adjusted Efficiency ratio Noninterest expense - GAAP $ 90,493 Acquisition and integration expense (3,757) Adjusted noninterest expense 86,736 Net interest income - GAAP 110,204 Effect of tax-exempt income 2,092 Adjusted net interest income 112,296 N
Slide 42: Thank You
DK CIVISTA Thank You