Civista Bancshares, Inc. · NASDAQ:CIVB
Civista Bancshares — Shareholder Meeting (April 2019)
36 slides from Civista Bancshares's shareholder meeting presentation, Apr 16, 2019
Slide 1: 2018 Shareholder Presentation
2018 Shareholder Presentation James O. Miller – Chairman Dennis G. Shaffer – Chief Executive Officer & President NASDAQ: CIVB Exhibit 99.1
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.” 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, Highlights, Stock Performance, Strategic Priorities
Corporate Overview 2018 Strategic and Financial Performance Highlights Stock and Shareholder Return Performance Strategic Priorities Growth Customer Experience People Revenue Diversification/Fee Income Growth/Efficiency Technology/Cyber Security
Slide 5: Corporate Overview
DK CIVISTA Corporate Overview
Slide 6: Corporate Overview
Corporate Overview Bank originally founded in 1884 2019 marks the 135th Anniversary of Civista Bank 10th Largest Publicly Traded Commercial Bank Headquartered in Ohio Community Banking Focused Operations in 12 Ohio, 2 Indiana and 1 Kentucky Counties 35 Branches & 3 Loan Production Offices Operations
Slide 7: Experienced Management Team
Experienced Management Team Dennis G. Shaffer SVP & Chief Operating Officer 33 years of banking experience Joined in 2007 Richard J. Dutton SVP & Chief Lending Officer 30 years of banking experience Joined in 2016 Charles A. Parcher SVP & General Counsel 15 years of banking experience Joined in 2018
Slide 8: Branch Footprint
$300 million in loans $456 million in deposits 44% of deposit share in our markets #1 deposit market share in Dearborn County (IN) & #4 in Ripley County (IN) Branch Footprint Source: S&P Global Market Intelligence, FDIC. Deposit market share information as of June 30, 2018. Sandusky / Akron / Clevel
Slide 9: 2018 Strategic and Financial Performance Highlights
2018 Strategic and Financial Performance Highlights 9
Slide 10: 2018 Highlights
2018 Highlights Completed 7th and largest acquisition in CIVB history Closed and converted UCB transaction 9/14/18 Reported Net Income of $13.2 million Adjusted Net Income of $24,650 without $11,470 integration and acquisition expense Continued strong year-to-date returns in 2018 ROAA: 0.81% - actua
Slide 11: Financial Highlights
Financial Highlights Source: Company Management and SNL Financial. 1 Pages 33-35 show 2018 ratios adjusted for merger related expense 2 Non-GAAP reconciliation on page 36.
Slide 12: Increasing Shareholder Value
Increasing Shareholder Value Source: Company management and SNL Financial. 2 Non-GAAP reconciliation on page 36 3 Pages 33-35 show 2018 ratios adjusted for merger related expense Tangible Book Value per Share2 Diluted EPS 3
Slide 13: Deposit Mix and Cost of Deposits
Source: Company Management and SNL Financial. 2018 Peer data as of 12/31/2018, or the latest available date. Note: Comparable peers include public banks +/- 20% CIVB’s asset size in Ohio and contiguous states. Deposit Mix Total Deposits: $1.6 billion 2018 Total Cost of Deposits: 0.28% 30% Noninteres
Slide 14: Loan Mix and Loan Yield
Source: Company Management and SNL Financial. 2018 Peer data as of 12/31/2018, or the latest available date. Note: Comparable peers include public banks +/- 20% CIVB’s asset size in Ohio and contiguous states. Loan Mix Total Gross Loans: $1.6 billion 2018 Loan Yield: 5.04% CRE to RBC ratio: 289.9% Y
Slide 15: Peer Leading FTE Net Interest Margin
Peer Leading FTE Net Interest Margin Source: SNL Financial. 2018 Peer data as of 12/31/2018, or the latest available date. Note: Comparable peers include public banks +/- 20% CIVB’s asset size in Ohio and contiguous states.
Slide 16: Effectively Managing Assets & Liabilities
Effectively Managing Assets & Liabilities Assets Asset duration of less than two years Encourage variable-rate commercial lending or swap into variable, if appropriate Generally limit fixed-rate terms to five years Sell fixed-rate mortgages Sold 74% of mortgage loans originated in 2018 Liabilities L
Slide 17: 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 1 / Average Loans Loan Loss Reserves / Gross Loans Loan Loss Reserves / Gross Loans Nonaccrual & 90 days Past Due2 / Gross Loans
Slide 18: Profitability & Returns Analysis
Profitability & Returns Analysis Source: Company Management and SNL Financial. 2 Pages 33-35 show 2018 ratios adjusted for merger related expense Diluted Earnings per Share 2 ROAE 2 ROAA 2 Net Income Available to Common Shareholders 2
Slide 19: Operating Results
Source: Company Management and SNL Financial. Operating Results
Slide 20: Stock Performance and Shareholder Return
Stock Performance and Shareholder Return 20
Slide 21: Stock Performance
Stock Performance Increased Market Cap (MM) $100,633 – Dec ’15 $341,074 – Mar ’19 70% Stock Price Increase Dec ‘15 vs Mar ‘19 Increased Stock Liquidity 5,427 shares/day – Dec ‘15 39,966 shares/day – Mar ‘19
Slide 22: Civista Shareholder Return
x CIVISTA Shareholder Return 600 500 eave 8 1 Standard & Poor's 500 Index s a —4— SNL Bank Index g 400 —@— NASDAQ Bank s @ 2 3 2 300 2 8 Fd S200 g 100 0 2013 2014 2015 2016 2017 2018
Slide 23: Strategic Priorities
Strategic Priorities: Growth Customer Experience People Revenue Diversification/Fee Income Growth/Efficiency Technology and Cyber Security 23
Slide 24: Strategic Priorities: The Importance of Growth
Strategic Priorities The Importance of Growth Source: Company Management and SNL Financial. More earning assets, supported by controlled costs Leads to better earnings, more profitability More size leads to scalability Increased earnings will support new fee based business lines to help diversify th
Slide 25: Growth: Organic and M&A
Strategic Priorities Growth: Organic and M&A Source: Company Management and SNL Financial. Civista has grown approximately $1 billion since January 2013 Completed two acquisitions since 2015 Acquisition of United Community Bancorp in September 2018 Acquisition of TCNB Financial Corp. in March 2015 T
Slide 26: Growth: Looking Ahead
Strategic Priorities Growth: Looking Ahead Source: Company Management and SNL Financial. Continue to evaluate target markets for acquisition/branch expansion as well as the need to raise capital to support growth initiative Expand deposit gathering initiatives Hire additional Treasury Management Off
Slide 27: Strategic Priorities: Customer Experience
Strategic Priorities Customer Experience We continue to differentiate ourselves from our competition by providing a superior customer experience The primary purpose of this priority is making it easy to do business with Civista Continue to streamline processes, policies and products Reduce any “red
Slide 28: Strategic Priorities: People
Strategic Priorities People Developing our employees is a priority as our people are critical for our future success Continue to enhance employee leadership development programs Enhance reward and recognition programs to attract and retain employees Encourage diversity and inclusion of workforce ¹Fr
Slide 29: Strategic Priorities: People
Strategic Priorities People
Slide 30: Revenue Diversification/Fee Income Growth/Efficiency
Strategic Priorities Revenue Diversification/Fee Income Growth/Efficiency Source: Company Management. 1 Pages 33-34 shows 2018 noninterest income adjusted for merger related expense. 2 Page 35 shows 2018 ratio adjusted for merger related expense. Efficiency Ratio 2 Noninterest Income / Average Asset
Slide 31: Technology and Cyber Security
Strategic Priorities Technology and Cyber Security Enhance the utilization of technology to leverage efficiency and improve internal and external customer experience Branch Anywhere Civista.bank website Loan Vantage Maintain policies, procedures and tools to protect our systems and information Fraud
Slide 32: Thank You
» CIVISTA BANCSHARES, INC. Thank You
Slide 33: Non-GAAP Information
CIVISTA BANCSHARES, INC. Non-GAAP Information (Ss in thousands, except per share data) Actual — Merger and adjusted Q4 2018 items Q4 2018 Net Interest Income $20,745 $0 $20,745 $14,563 Provision for Loan Losses 390 0 390 ° Noninterest Income 4,838 27 4,865 3,630 Noninterest Expense 16,391 (782) 15,6
Slide 34: Non-GAAP Information
CIVISTA Non-GAAP Information BANCSHARES, INC. ($s in thousands, except per share data) Adjusted 2018 Net Interest Income $66,107 so $66,107 $54,502 Provision for Loan Losses 780 0 780 OC) Noninterest Income 18,131 413 18,544 16,334 Noninterest Expense 66,679 (12,735) 53,944 48,604 Net Income/(Loss)
Slide 35: Non-GAAP Information: Adjusted Efficiency Ratio
CIVISTA Non-GAAP Information (8s in thousands) Adjusted Efficiency ratio Noninterest expense (GAAP) $ 66,679] $ 48,604 ‘Acquisition and integration expense (12,735) ‘Adjusted noninterest expense 53,944] 48,604 Net interest income (GAAP) 66,107] 54,502 Effect of tax-exempt income 4,062 4.744 ‘Adjuste
Slide 36: 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, 2014 2015 2016 Tangible Common Equity Total Equity $ 128,376 $ 115909 $ 125,173 $ 137,616 $ 184,461|$ 298,898 Less: Preferred Equity 46,316 23,132 22,273 18,950 17,3
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