Civista Bancshares, Inc. · NASDAQ:CIVB
Civista Bancshares — Q1 2022 Earnings Presentation
42 slides from Civista Bancshares's earnings presentation, Apr 28, 2022
Slide 1: Investor Presentation First Quarter 2022
Investor Presentation First Quarter 2022 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 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 Chief Executive Officer & President dgshaffer@civb.com Telephone: 888.645.4121 3
Slide 4: Who We Are
BANCSHARES, INC. Who We Are
Slide 5: Who We Are
Who We Are Bank founded and headquartered in 1884 in Sandusky, Ohio 10th Largest Publicly Traded Commercial Bank Headquartered in Ohio 455 Employees Community Banking Focused Operations in 12 Ohio, 2 Indiana and 1 Kentucky Counties – 33 Branches & 2 Loan Production Offices Operations in th
Slide 6: Who We Are
Who We Are Sandusky/Norwalk/Port Clinton, Cleveland/Akron, Ohio Ohio 9 Locations 3 Locations $429 million in loans $649 million in loans $1,091 million in deposits $166 million in #1 deposit market share in Sandusky, deposits Ohio with ~52% market share Columbus & West Central, O
Slide 7: Who We Are
Who We Are Community bank franchise in growth markets with an established operating model – Gather attractive low‐cost deposits (11 bps total cost of deposits) – Generate loans organically in select growing markets (operations in the 5 largest MSAs in Ohio) Strong capital position Disciplined
Slide 8: Who We Are
Who We Are Dennis G. Shaffer Charles A. Parcher Richard J. Dutton SVP & Chief SVP & Chief CEO & President Lending Officer Operating Officer President, Civista 33 years of 36 years of Bank banking banking 36 years of experience experience banking Joined in 2016 Joined in 2007 experi
Slide 9: Civista Bancshares, Inc.
CIVISTA BANCSHARES, INC. BEST EMPLOYERS IN OHIO! 2021 CRAIN'S CLEVELAND BUSINESS MULTI- YEAR WINNER 2021 we 2020 % 2019 #CommunityBankingMonth BRIAN EVAK BRANCH MANAGER » CIVISTA BANK Focused on You VP, BANK SECRECY OFFICER 48 YEARS IN BANKING BRANCH MANAGER | ST. LEON BRANCH 8 YEARS IN BANKING PERS
Slide 10: Current Initiatives
» CIVISTA BANCSHARES, INC. Current Initiatives
Slide 11: Overview of The Henry County Bank
Overview of The Henry County Bank Pro Forma Branch Footprint Company Highlights CBCZ Headquartered in Napoleon, OH, approximately 35 CIVB miles southwest of downtown Toledo, OH Rapidly‐growing Route 24 and I‐75 Founded in 1936 and has been Henry County’s #1 corridor community bank for over 50 ye
Slide 12: Market Expansion in the Attractive Northwest Ohio Region
Market Expansion in the Attractive Northwest Ohio Region Market Overview 3‐Year MSA Deposit Growth CAGRs 15.8% Northwest Ohio 13.5% Northwest Ohio presents an attractive community 12.1% 12.1% 12.0% 11.7% banking market consistent with Civista’s model Home to Ohio’s 4th largest city of Toledo and
Slide 13: Transaction Rationale
Transaction Rationale Significantly Adds 7 branches in Northwest Ohio and $276 million in low‐cost core deposits Accelerates Comunibanc’s ~60% loan‐to‐deposit ratio provides ample liquidity for Civista to accelerate its Presence & Growth in loan growth throughout Northwest Ohio, including the at
Slide 14: Current Initiatives
Current Initiatives Leveraging Technology Enhance utilization of technology to improve efficiency and customer experience – Curbside banking – E‐Sign – Digital Transformation Enhanced Treasury Management Services and Reporting Improved in‐branch and online access – Retail – Commercial • Intr
Slide 15: Civista Digital Banking
Current Initiatives Civista Digital Banking 15
Slide 16: Financial Trends
» CIVISTA BANCSHARES, INC. Financial Trends
Slide 17: Financial Highlights
Financial Trends Financial Highlights ($s in thousands, except per share data) March 31, March 31, 2022 2021 % Change Balance Sheet Assets $3,184,357 $3,057,368 4.15% Gross Loans (excluding HFS) 1 2,018,188 2,060,239 (2.04%) Deposits 2,615,137 2,475,907 5.62% March 31, March 31, 2022 2021 % Change P
Slide 18: Total Assets
Financial Trends Total Assets1 ($ in millions) $3,184 $3,012 $2,763 $2,310 $2,139 $1,526 2017 2018 2019 2020 2021 2022 1. 2018 includes the addition of $578 million in assets due to United Community Bancorp acquisition 18
Slide 19: Total Gross Loans
Financial Trends Total Gross Loans1 ($ in millions) CAGR 13.8% $2,057 $1,998 $2,018 $1,709 $1,562 $1,165 2017 2018 2019 2020 2021 2022 1. 2022 includes $15.5 million of PPP loans. 2021 includes $43.2 million of PPP loans. 2020 includes $217.3 million of PPP loans. 2018 includes the addition of $299
Slide 20: Loan Mix
FinancialTrends Loan Mix ($ in millions) Total Gross Loans: $2.0 billion CRE to RBC Ratio: 300.9% 20
Slide 21: Asset quality and loan loss reserves
Financial Trends Nonaccrual NPAs & 90 days & 90+PD Past/Due 2 / Gross Loans Assets Loan Loss Reserves / Gross Loans 0.57% 0.53% 1.34% 0.50% 1.33% 1.22% 1.13% 0.34% 0.88% 0.86% 0.26% 0.26% 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 Reserves / NPLs NCOs / Average Loans 1 0.02% 0.02% 4
Slide 22: Total Deposits
Financial Trends Total Deposits1 ($ in millions) $2,615 $2,417 $2,189 $1,679 $1,580 $1,205 2017 2018 2019 2020 2021 2022 1. 2018 includes the addition of $476 million in deposits due to United Community Bancorp acquisition 22
Slide 23: Deposit Mix
Financial Trends Deposit Mix Total Deposits: $2.6 billion Loan/Deposit Ratio: 84.4%1 38% Noninterest Bearing Demand Deposits are 78% Commercial and 22% Retail Cost of Cost of Year Deposits Funding 2017 0.19% 0.46% 2018 0.28% 0.73% 2019 0.48% 0.68% 2020 0.33% 0.43% 2021 0.17% 0.24% 2022 0.11% 0
Slide 24: Cost of Deposits and Yield on Loans vs Peers
Financial Trends Total Cost of Deposits (%) 0.93% 0.93% 0.71% 0.71% 0.66% 0.48% 0.47% 0.48% 0.32% 0.33% 0.28% 0.29% 0.19% 0.22% 0.17% 0.18% 0.11% 0.14% 2017Y 2018Y 2019Y 2020Y 2021Y 2022Q1 CIVB Peer Median Peer Top Quartile Yield on Loans (%) 5.27% 5.42% 5.27% 5.42% 5.04% 4.91% 5.17% 5.09% 5.09% 4
Slide 25: Net Interest Margin
Financial Trends Net Interest Margin 4.31% 4.21% 4.01% 3.79% 3.86% 3.81% 3.69% 3.66% 3.70% 3.70% 3.61% 3.47% 3.47% 3.45% 3.42% 3.31% 3.38% 3.27% 2017Y 2018Y 2019Y 2020Y 2021Y 2022Q1 CIVB Peer Median Peer Top Quartile 2022 peer data as of 3/31/2022, or the latest available date. Note: Comparable peer
Slide 26: Non-Interest Income and Expense
Financial Trends Non‐Interest Income and Expense Fee income platform Disciplined approach to controlling non‐interest expense – Service charges on deposit accounts were $1.6 million YTD 2022 and $1.3 million YTD 2021 Continued focus on review of branch network Mortgage Banking Identified e
Slide 27: Capital Management
Financial Trends Capital Management 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 Redeemed outstanding preferred shares effective December 20, 2019 Authorized $
Slide 28: Providing Shareholder Value
Providing Shareholder Value 30
Slide 29: Net Income & Earnings Per Share
Providing Shareholder Value Net Income & Earnings Per Share (Available to Common) ($ in millions) 1. Q1 2022 presented on LTM basis 2. Page 41 shows 2018 ratios adjusted for merger related expenses 29
Slide 30: Total Shareholders' Equity & Return on Tangible Equity
Providing Shareholder Value Total Shareholders’ Equity & Return on Tangible Equity1,2,3 ($ in millions) 1. LTM basis 2. Non‐GAAP reconciliation on page 37 30 3. 2022 Q1 includes tax effected net change of $30MM in unrealized loss from 12/31/21 to 3/31/22. The change in unrealized loss is 5.3% of sec
Slide 31: Tangible Book Value per Share
Providing Shareholder Value Tangible Book Value per Share1,2 $18.11 CAGR 4.6% $16.68 $16.45 $14.68 $13.60 $13.03 2017 2018 2019 2020 2021 2022 1. Non‐GAAP reconciliation on page 37 2. 2022 Q1 includes tax effected net change of $30MM in unrealized loss from 12/31/21 to 3/31/22. The change in unreali
Slide 32: Why Civista?
» CIVISTA BANCSHARES, INC. Why Civista?
Slide 33: Experienced Acquirer & Organic Growth Model
Why Civista? Experienced Acquirer & Organic Growth Model Completed 3 acquisitions since 2007, including the acquisition of United Community Bancorp, which closed September 14, 2018 Expanded commercial loan growth in Columbus, Cleveland, Akron, Dayton and Cincinnati markets – Since year‐end 2017,
Slide 34: Compelling Investment Opportunity
Why Civista? Compelling Investment Opportunity Community bank franchise poised for acquisitions and strong core deposit franchise Strong capital position Strong credit culture and asset quality Experienced acquirer Continued strong NIM Experienced management team with an average of 30 ye
Slide 35: Additional Information
» CIVISTA BANCSHARES, INC. Additional Information
Slide 36: Operating Results
Operating Results ($s in thousands, except per share data) LTM 2017 2018 2019 2020 2021 2022 Net Interest Income $54,502 $66,107 $85,100 $89,727 $95,425 $94,529 Provision for Loan Losses 0 780 1,035 10,112 830 300 Noninterest Income 16,334 18,131 22,443 28,182 31,452 29,905 Noninterest Expense 48,60
Slide 37: Non-GAAP Reconciliation
Non‐GAAP Reconciliation ($s in thousands, except per share data) As of and for the Years Ended December 31, 2017 2018 2019 2020 2021 2022 Tangible Common Equity Total Shareholder's Equity - GAAP $ 184,461 $ 298,898 $ 330,126 $ 350,108 $ 355,212 $ 327,692 Less: Preferred Equity 17,358 9,364 - - - - L
Slide 38: 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 39: Non-GAAP Reconciliation
Non‐GAAP Reconciliation ($s in thousands) YTD 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-i
Slide 40: Non-GAAP Reconciliation
Non‐GAAP Reconciliation ($s in thousands) YTD 2022 Adjusted Efficiency ratio Noninterest expense - GAAP $ 20,258 Acquisition and integration expense (487) Adjusted noninterest expense 19,771 Net interest income - GAAP 22,932 Effect of tax-exempt income 476 Adjusted net interest income 23,408 Noninte
Slide 41: 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 42: Thank You
Thank You 42