Civista Bancshares, Inc. · NASDAQ:CIVB
Civista Bancshares — Q2 2017 Earnings Presentation
24 slides from Civista Bancshares's earnings presentation, Aug 1, 2017
Slide 1: Investor Presentation Second Quarter 2017
Exhibit 99.1 Investor Presentation Second Quarter 2017 James O. MillerChairman, - President & Chief Executive Officer Dennis G. ShafferExecutive - Vice President & President of Civista Bank Richard J. DuttonSenior - Vice President, Chief Operating Officer NASDAQ: CIVB 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This materialandany oral presentationthat may accompanyit contain,andfuture oral and written statementsof the Company and its managementmay contain, forward-looking statements,within the meaning of such term in the Private Securities LitigationReformAct of 1995,Section27A
Slide 3: Contact Information
Contact Information Civista Bancshares, Inc.’s common shares are traded on the NASDAQ Capital Market under the symbol th “CIVB.” The Company’s depository shares, each representing 1/40ownership interest in a Series B Preferred Share, are traded on the NASDAQ Capital Market under the symbol “CIVBP.”
Slide 4: Corporate Overview
Corporate Overview Corporate Overview Bank originally founded in 1884 th 9 Largest Publicly Traded Commercial Bank Headquartered in Ohio Community Banking Focused Operations in 12 Ohio Counties – 27 Branches & 2 Loan Production Offices Operations in 4 of the 5 largest Ohio MSAs Franchise Poised for
Slide 5: Experienced Management Team
Experienced Management Team James O. Miller Dennis G. Shaffer Chairman, President & EVP CEO President, Civista Bank 43 years of banking experience 31 years of banking experience Joined in 1986 Joined in 2009 Richard J. Dutton Charles A. Parcher James E. McGookey SVP & Chief Operating SVP & Chief Len
Slide 6: Branch Footprint
Branch Footprint Sandusky / Akron / West Central Ohio Cleveland, Ohio $679 million in loans $268 million in loans $710 million in deposits $200 million in deposits 12 locations 7 locations #1 deposit market share in 22% deposit market Sandusky, Ohio with share in the rural ~ 48% market share markets
Slide 7: Attractive Target Markets
Attractive Target Markets Sandusky / Akron / Cleveland North Central Ohio West Central Ohio Greater Dayton Ohio Development Opportunity Toledo - 7
Slide 8: Investment Highlights
Investment Highlights Experienced management team with a deep bench Community bank franchise in growth markets with an established operating model – Gather attractive low-cost rural deposits (14 bps total cost of deposits) – Generate loans in select growing urban markets (operations in 4 of the 5 la
Slide 9: Financial Highlights
Financial Highlights Financial Highlights ($s in thousands, except per share data) June 30, 2017 June 30, 2016 % Change Balance Sheet Assets $1,462,128 $1,359,911 7.52% Gross Loans 1,100,817 1,028,922 6.99% Deposits 1,164,888 1,115,007 4.47% Performance Analysis Net Income Available to Common $7,604
Slide 10: Increasing Shareholder Value
Increasing Shareholder Value 1 Tangible Book Value per Share Diluted EPS Source: SNL Financial. 1 10 Non-GAAP reconciliation on page 23.
Slide 11: Proven Acquirer & Attractive Organic Growth
Proven Acquirer & Attractive Organic Growth 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 have increased from $163 million to $431mil
Slide 12: Deposit Mix
Deposit Mix Total Deposits: $1.2 billion 2017 Total Cost of Deposits: 0.14% 34% Noninterest Bearing Demand Deposits 2017 Loan/Deposit Ratio: 87% Total Cost of Deposits (%) CIVB Peer Median Peer Top Quartile 0.64% 0.59% 0.50% 0.42% 0.44% 0.40% 0.32% 0.33% 0.34% 0.29% 0.30% 0.26% 0.22% 0.24% 0.24% 0.1
Slide 13: Loan Mix
Loan Mix Total Gross Loans: $1.1 billion 2017 Loan Yield: 4.52% Yield on Loans (%) 5.60% 5.13%5.15% 4.96% 5.02% 4.74%4.78% 4.58%4.67% 4.57%4.67% 4.76% 4.58%4.73% 4.73% 4.60% 4.52%4.49% CIVB Peer Median Peer Top Quartile 2012Y 2013Y 2014Y 2015Y 2016Y 2017Q2 Source: Company Management and SNL Financia
Slide 14: Peer Leading FTE Net Interest Margin
Peer Leading FTE Net Interest Margin 3.98% 3.96% 3.93% 3.86% 3.79% 3.79% 3.71% 3.62% 3.63% 3.57% 3.55% 3.55% 3.49% 3.52% 3.48% 3.45% 3.31% 3.31% 2012Y 2013Y 2014Y 2015Y 2016Y 2017Q2 CIVB Peer Median Peer Top Quartile Source: SNL Financial. 2017 Peer data as of 6/30/2017, or the latest available date
Slide 15: Effectively Managing Assets & Liabilities
Effectively Managing Assets & Liabilities Assets Liabilities Asset duration of less than two years Liability duration greater than three years Sell fixed-rate mortgages Focus on low-cost “sticky” demand deposits Encourage variable-rate commercial lending or swap into variable, if appropriate Don’t o
Slide 16: Strong Asset Quality
Strong Asset Quality Nonaccrual & 90 days Past Due / Gross ¹ Loans Loan Loss Reserves / Gross Loans 3.67% 2.42% 1.92% 2.38% 1.56% 1.43% 1.26% 1.19% 1.48% 0.92% 0.66% 0.63% 2012 2013 2014 2015 2016 Q2 2017 2012 2013 2014 2015 2016 Q2 2017 Reserves / NPLs NCOs / Average Loans 120.54% 113.74% 1.01% 108
Slide 17: Fee Income / Operating Efficiencies
Fee Income / Operating Efficiencies Fee income platform Income tax refund processing program – Service charges on deposit accounts were $2.4 million – Specialized refund processing earned $2.8 YTD 2017 and $2.5million YTD 2017 and 2016, respectively and 2016 Mortgage Banking Continued focus on impro
Slide 18: Profitability & Returns Analysis
Profitability & Returns Analysis Net Income Available to Common Shareholders ROAA $15,716 1.19% $14,196 1.06% 0.95% $11,168 0.77% $7,655 0.49% 0.53% $4,386 $5,020 2012 2013 2014 2015 2016 2017 Q2¹ 2012 2013 2014 2015 2016 2017 Q2 Diluted Earnings per Share ROAE 12.90% $1.57 $1.36 10.59% 10.11% $1.17
Slide 19: Capital Position
Capital Position ($s in thousands, except per share data) For the Years Ended December 31, As 1 2012 2013 2014 2015 2016 2017 Q2 Converted Total Equity $103,980 $128,376 $115,909 $125,173 $137,616 $178,843 $178,843 Preferred Equity $23,184 $46,316 $23,132 $22,273 $18,950 $17,568 $0 Common Equity $80
Slide 20: Operating Results
Operating Results ($s in thousands, except per share data) For the Years Ended December 31, LTM Q2 2012 2013 2014 2015 2016 2017 Net Interest Income $40,578 $39,974 $41,866 $47,392 $50,259 $51,343 Provision for Loan Losses 6,400 1,100 1,500 1,200 (1,300) 0 Noninterest Income 11,200 12,062 13,874 14,
Slide 21: Compelling Investment Opportunity
Compelling Investment Opportunity Strong asset quality Proven acquirer – Completed 6 acquisitions since the formation of the holding company in 1987 Peer leading NIM – Low cost deposits 2 –0bps lower than peers – High yield loan portfolio –3 bps higher than peers Experienced management team with an
Slide 22: 2016 Without Nonrecurring Recovery
2016 Without Nonrecurring Recovery ($s in thousands, except per share data) Actual Recovery Adjusted LTM Q2 2016 2016 2017 Net Interest Income $50,259 ($919) $49,340 $51,343 Provision for Loan Losses (1,300) 1,300 0 0 Noninterest Income 16,132 0 16,132 16,035 Noninterest Expense 43,855 0 43,855 45,9
Slide 23: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($s in thousands, except per share data) As of and for the Years Ended December 31, Q2 2012 2013 2014 2015 2016 2017 Tangible Common Equity Total Equity $ 103,980 $ 128,376 $ 115,909 $ 125,173 $ 137,616 $ 178,834 Less: Preferred Equity 23,184 46,316 23,132 22,273 18,950 17,56
Slide 24: Thank You
BANCSHARES, INC. Thank You