Civista Bancshares, Inc. · NASDAQ:CIVB
Civista Bancshares — Q3 2020 Earnings Presentation
29 slides from Civista Bancshares's earnings presentation, Oct 23, 2020
Slide 1: Investor Presentation Third Quarter 2020
Investor Presentation Third Quarter 2020 Dennis G. Shaffer ‐ President & Chief Executive Officer 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 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.” Additional information can be found at: www.civb.com Dennis G Shaffer President & Chief Executive Officer dgshaffer@civb.com Telephone: 888.645.4121 3
Slide 4: Corporate Overview
Corporate Overview Bank founded in 1884 9th Largest Publicly Traded Commercial Bank Headquartered in Ohio Community Banking Focused Operations in 12 Ohio, 2 Indiana and 1 Kentucky Counties – 35 Branches & 2 Loan Production Offices Operations in the 5 largest Ohio MSAs Strong Core Deposit F
Slide 5: Investment Highlights
Investment Highlights Community bank franchise in growth markets with an established operating model – Gather attractive low‐cost deposits (35 bps total cost of deposits) – Generate loans in select growing markets (operations in the 5 largest MSAs in Ohio) Strong capital position Disciplined u
Slide 6: Branch Footprint
Branch Footprint Headquartered in Sandusky, Ohio 35 branches & 2 LPOs (Ohio, Indiana and Kentucky) 461 Employees 6
Slide 7: Markets
Markets Sandusky/Norwalk/Port Clinton, Cleveland/Akron, Ohio Ohio 9 Locations 3 Locations $441 million in loans $585 million in loans $828 million in deposits $96 million in #1 deposit market share in Sandusky, deposits Ohio with ~51% market share Columbus & West Central, Ohio
Slide 8: Experienced Management Team
Experienced Management Team Dennis G. Shaffer Charles A. Parcher Richard J. Dutton CEO & President SVP & Chief Lending SVP & Chief Operating Officer Officer President, Civista Bank 32 years of banking 34 years of banking 35 years of banking experience experience experience Joined in
Slide 9: Financial Highlights
Financial Highlights Financial Highlights ($s in thousands, except per share data) September 30, December 31, 2020 2019 % Change Balance Sheet Assets $2,817,993 $2,309,557 22.01% Gross Loans (excluding HFS) 1 2,040,940 1,708,970 19.43% Deposits 2,068,769 1,678,764 23.23% September 30, September 30,
Slide 10: Increasing Shareholder Value
Increasing Shareholder Value Tangible Book Value per Share2 $16.25 $14.77 $13.68 $13.14 $10.84 $9.43 2015 2016 2017 2018 2019 2020 Q3 Diluted EPS3 $2.01 $1.85 $1.83 $1.57 $1.28 $1.17 $1.02 2015 2016 2017 2018 2019 2020 Q3¹ Source: Company management and SNL Financial. 10 1 LTM basis 2 Non‐GAAP recon
Slide 11: Proven Acquirer & Attractive Organic Growth
Proven Acquirer & Attractive Organic Growth Completed 3 acquisitions since 2007, including the acquisition of United Community Bancorp, which closed September 14, 2018 Expanded commercial loan growth in Columbus, Cleveland, Akron, Dayton and Cincinnati markets – Since year‐end 2013, loan portfol
Slide 12: Deposit Mix
Deposit Mix Total Deposits: $2.1 billion 2020 Total Cost of Deposits: 0.35% 32% Noninterest Bearing Demand Deposits split between Commercial (71%) and Retail (29%) 2020 Loan/Deposit Ratio: 98.65% 12
Slide 13: Loan Mix
Loan Mix Total Gross Loans: $2.0 billion 2020 Loan Yield: 4.53% Diversified CRE Portfolio1 – No Big Box Retail or Energy Exposure – Hotel, Restaurant, Entertainment (12%), Retail (19%), Industrial (8%), Office (5%) CRE to RBC ratio: 317.8% 1. Hotel, Restaurant, Entertainment, Retail, Industr
Slide 14: Total Cost of Deposits and Yield on Loans
Total Cost of Deposits (%) 0.93% 0.71% 0.66% 0.65% 0.57% 0.48% 0.47% 0.48% 0.44% 0.43% 0.35% 0.29% 0.32% 0.28% 0.28% 0.19% 0.19% 0.16% 2015Y 2016Y 2017Y 2018Y 2019Y 2020Q3 CIVB Peer Median Peer Top Quartile Yield on Loans (%) 5.42% 5.27% 5.17% 5.09% 5.04% 4.91% 4.91% 4.90% 4.87% 4.86% 4.68% 4.64%
Slide 15: Peer Leading FTE NIM
Peer Leading FTE NIM 4.31% 4.21% 3.96% 3.93% 4.01% 3.79% 3.79% 3.86% 3.81% 3.75% 3.69% 3.70% 3.68% 3.61% 3.66% 3.57% 3.48% 3.48% 2015Y 2016Y 2017Y 2018Y 2019Y 2020Q3 CIVB Peer Median Peer Top Quartile Source: SNL Financial. 2020 peer data as of 9/30/2020, or the latest available date. 15 Note: Compa
Slide 16: Operating Efficiencies
Operating Efficiencies Fee income platform Continued disciplined approach to controlling – Service charges on deposit accounts were $3.8 million YTD 2020 noninterest expense and $4.7 million YTD 2019 Mortgage Banking Near‐term focus on review of branch network – Gain on sale of loans, primar
Slide 17: Leveraging Technology
Leveraging Technology Enhance utilization of technology to leverage efficiency and improve internal and external customer experience – Curbside banking – Workflow and electronic storage – E‐Sign – Digital Transformation (in process) • Retail • Commercial Improved in‐branch and online account ope
Slide 18: Strong Asset Quality
Strong Asset Quality Nonaccrual NPAs & 90 days & 90+PD Past/Due 2 / Gross Loans Assets Loan Loss Reserves / Gross Loans 0.92% 1.43% 1.26% 1.13% 1.11% 0.66% 0.57% 0.88% 0.53% 0.50% 0.86% 0.36% 2015 2016 2017 2018 2019 2020 Q3 2015 2016 2017 2018 2019 2020 Q3 Reserves / NPLs NCOs / Average Loans 0.11%
Slide 19: Profitability & Returns Analysis
Profitability & Returns Analysis Net Income Available to Common Shareholders2 ROAA2 $33,231 $29,567 1.47% 1.51% 1.19% 1.13% $24,650 1.04% 0.95% 0.81% $15,716 $14,628 $13,180 $11,168 2015 2016 2017 2018 2019 2020 Q3¹ 2015 2016 2017 2018 2019 2020 Q3¹ Diluted Earnings per Share2 ROAE2 12.90% 11.78% $2
Slide 20: Strong Capital Position
Strong Capital Position Successfully raised $32.8 million of capital (issued 1,610,000 shares) in February 2017 Additional $104.7 million of capital (issued 4,277,430 shares) related to UCB merger in September 2018 Successfully redeemed outstanding preferred shares effective December 20, 2019
Slide 21: Operating Results
Operating Results ($s in thousands, except per share data) For the Years Ended December 31, LTM Q3 2015 2016 2017 2018 2019 2020 Net Interest Income $47,392 $50,259 $54,502 $66,107 $85,100 $87,418 Provision for Loan Losses 1,200 (1,300) 0 780 1,035 8,747 Noninterest Income 14,278 16,132 16,334 18,13
Slide 22: Compelling Investment Opportunity
Compelling Investment Opportunity Community bank franchise poised for acquisitions and strong core deposit franchise Strong capital position Strong credit culture and asset quality Proven acquirer of choice – Completed 3 acquisitions since 2007, including the acquisition of United Community
Slide 23: COVID-19 Programs
COVID‐19 Programs Top Priorities: Focus on Customer’s Financial Needs and Health and Safety of Employees and Customers Assistance Programs – SBA – Paycheck Protection Program – Commercial Loan Payment Deferral Program – Suspension of Foreclosure Program – Consumer and Mortgage Payment Deferral P
Slide 24: SBA Paycheck Protection Program
SBA Paycheck Protection Program $259.1 million through September 30, 2020 – Provided assistance to more than 2,300 businesses and their over 36,000 employees – Over 2,300 loans, average loan size ~$110K – Over 50% of PPP loans fall within Restaurants, Healthcare, Manufacturing and Construction – A
Slide 25: COVID Deferrals
COVID 19 Deferrals During 2020, Civista modified a total of 813 loans totaling $431.1 million, primarily consisting of the deferral of principal and/or interest payments, under the provisions of the CARES Act. As of September 30, 2020, loans that remain on a CARES Act modification total $52.2 mill
Slide 26: Non-GAAP Reconciliation
Non‐GAAP Reconciliation Tangible Common Equity and Tangible Assets ($s in thousands, except per share data) As of and for the Years Ended December 31, 2015 2016 2017 2018 2019 2020 Q3 Tangible Common Equity Total Shareholder's Equity - GAAP $ 125,173 $ 137,616 $ 184,461 $ 298,898 $ 330,126 $ 342,055
Slide 27: Non-GAAP Reconciliation
Non‐GAAP Reconciliation ($s in thousands) YTD 2018 Adjusted Efficiency ratio Noninterest expense - GAAP $ 66,679 Acquisition and integration expense (12,735) Adjusted noninterest expense 53,944 Net interest income - GAAP 66,107 Effect of tax-exempt income 1,062 Adjusted net interest income 67,169 No
Slide 28: Non-GAAP Reconciliation
Non‐GAAP Reconciliation ($s in thousands, except per share data) Actual Merger and Adjusted 2018 one-time GAAP items 2018 Net Interest Income $66,107 $0 $66,107 Provision for Loan Losses 780 0 780 Noninterest Income 18,131 413 18,544 Noninterest Expense 66,679 (12,735) 53,944 Net Income/(Loss) 14,13
Slide 29: Thank You
XK cists Thank You