Civista Bancshares, Inc. · NASDAQ:CIVB
Civista Bancshares — Q3 2018 Earnings Presentation
26 slides from Civista Bancshares's earnings presentation, Nov 7, 2018
Slide 1: Investor Presentation Third Quarter 2018
Investor Presentation Third Quarter 2018 Dennis G. Shaffer - President & Chief Executive Officer Richard J. Dutton - Senior Vice President, Chief Operating Officer 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
Corporate Overview Bank originally founded in 1884 11th 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 in the 5 largest Ohio MSAs Franchise Poised for
Slide 5: Experienced Management Team
Experienced Management Team Dennis G. Shaffer SVP & Chief Operating Officer 32 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 16 years of banking experience Joined in 2002
Slide 6: Branch Footprint
$299 million in loans $469 million in deposits 81% of deposits within Cincinnati MSA #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, 2017. Sandusky / Akron / Clev
Slide 7: 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 (22 bps total cost of deposits) Generate loans in select growing urban markets (operations in the 5 largest MSA
Slide 8: Financial Highlights
Financial Highlights Source: Company Management and SNL Financial. 1 Pages 21 - 24 show 2018 ratios adjusted for merger related expense 2 Non-GAAP reconciliation on page 25.
Slide 9: Increasing Shareholder Value
Increasing Shareholder Value Source: Company management and SNL Financial. 1 LTM basis 2 Non-GAAP reconciliation on page 25 3 Pages 21 - 24 show 2018 ratios adjusted for merger related expense Tangible Book Value per Share2 Diluted EPS 3
Slide 10: Proven Acquirer & Attractive Organic Growth
Proven Acquirer & Attractive Organic Growth Source: Company Management and SNL Financial. Completed 7 acquisitions since the formation of the holding company in 1987, including the acquisition of United Community Bancorp, which closed in September 14, 2018 Expanded commercial loan growth in Columbus
Slide 11: Deposit Mix and Cost of Deposits
Source: Company Management and SNL Financial. 2018 Peer data as of 9/30/2018, 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: 0.22% 30% Noninterest
Slide 12: Loan Mix and Loan Yield
Source: Company Management and SNL Financial. 2018 Peer data as of 9/30/2018, 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: $1.5 billion 2018 Loan Yield: 4.91% CRE to RBC ratio: 272.5% Yi
Slide 13: Peer Leading FTE Net Interest Margin
Peer Leading FTE Net Interest Margin Source: SNL Financial. 2018 Peer data as of 9/30/2018, or the latest available date. Note: Comparable peers include public banks +/- 20% CIVB’s asset size in Ohio and contiguous states.
Slide 14: 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 Liabilities Liability duration greater than three years Foc
Slide 15: Fee Income / Operating Efficiencies
Fee Income / Operating Efficiencies Source: Company Management. 1 Page 23 shows 2018 ratio adjusted for merger related expense Efficiency Ratio 1 Noninterest Income / Average Assets Fee income platform YTD Service charges on deposit accounts were $3.7 million and $3.6 million for 2018 and 2017, resp
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 1 / Average Loans Loan Loss Reserves / Gross Loans NPAs & 90+PD / Assets Loan Loss Reserves / Gross Loans Nonaccrual & 90 days Past Due2 / Gross Loan
Slide 17: Profitability & Returns Analysis
Profitability & Returns Analysis Source: Company Management and SNL Financial. 1 LTM 2 Pages 21 - 24 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 18: 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: $7.82) was converted into common equity. 2 TCE Non-GAAP reconciliation on page 24. Capital Position
Slide 19: Operating Results
Source: Company Management and SNL Financial. Operating Results
Slide 20: Compelling Investment Opportunity
Compelling Investment Opportunity Strong asset quality Proven acquirer Completed 7 acquisitions since the formation of the holding company in 1987, including the acquisition of United Community Bancorp, which closed on September 14, 2018 Peer leading NIM Low cost deposits – 42 bps lower than peers H
Slide 21: Non-GAAP Information
CIVISTA Non-GAAP Information BANCSHARES, INC. ($s in thousands, except per share data) Merger and Actual Adjusted one-time Q3 2018 items Q3 2018 Net Interest Income $15,824 $0 $15,824 $13,680 390 0 390 0 Noninterest Income 3,288 392 3,680 3,465 Noninterest Expense 22,156 (8,801) 13,355 12,167 Net In
Slide 22: Non-GAAP Information
CIVISTA Non-GAAP Information BANCSHARES, INC. ($s in thousands, except per share data) Actual Mergerand A aiusted one-time YTD 2018 items YTD 2018 |) yap 20i7 Net Interest Income $45,362 $0 $45,362 $39,939 Provision for Loan Losses 390 0 390 0) Noninterest Income 13,293 392 13,685 12,704 Noninterest
Slide 23: Non-GAAP Information
CIVISTA BANCSHARES, INC. Non-GAAP Information ($s in thousands, except per share data) actual tm MCFSer 2nd pgiusted LTM one-time Q3 2018 items 32018 _|Tm@s2017 Net Interest Income $59,925 $0 $59,925 $52,947 Provision for Loan Losses 390 o 390 0 Noninterest Income 16,924 392 17,316 15,847 Noninteres
Slide 24: Non-GAAP Information
BANCSHARES, INC. > CIVISTA Non-GAAP Information (8s in thousands) Adjusted Efficiency ratio Noninterest expense (GAAP) $ 36,217 | $ 50,288 Acquisition and integration expense - (11,952) Adjusted noninterest expense 36,217 38,336 Neti interest income (GAAP) 39,939 45,362 tax-exempt income 1,187 712 p
Slide 25: 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 Q3 2018 ‘Tangible Common Equity Total Equity $ 128,376 $ 115,909 $ 125,173 $ 137,616 $ 184,461|$ 289,388 Less: Preferred Equity 46,316 23,132 22,273 18,
Slide 26: Thank You
Thank You