Civista Bancshares, Inc. · NASDAQ:CIVB
Civista Bancshares — Q2 2024 Earnings Presentation
43 slides from Civista Bancshares's earnings presentation, Jul 29, 2024
Slide 1: Investor Presentation Second Quarter 2024
Investor Presentation Second Quarter 2024 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@civista.bank ➢ Telephone: 888.645.4121 3
Slide 4: Who We Are
Who We Are 4
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 ➢ 548 Employees ➢ Community Banking Focused Operations in 14 Ohio, 2 Indiana and 1 Kentucky Counties – 41 Branches & 2 Loan Production Offices – Operations in th
Slide 6: Who We Are
Who We Are ➢ Northwest Ohio ➢ Sandusky/Norwalk/Port Clinton, Ohio ➢ 7 Locations ➢ 9 Locations ➢ $196 million in loans ➢ $582 million in loans ➢ $192 million in ➢ $1,385 million in deposits deposits ➢ #1 deposit market share in Sandusky, ➢ 17% deposit market Ohio with ~53% share ➢ Civista Leasing & ➢
Slide 7: Who We Are
Who We Are ➢ Community bank franchise in growth markets with an established operating model – Gather attractive low-cost deposits (125 bps total cost of deposits (excluding brokered)) – Generate loans organically in select growing markets (operations in the 5 largest MSAs in Ohio) ➢ Strong capital p
Slide 8: Who We Are
CIVISTA BANCSHARES, INC. Dennis G. Shaffer Chief Executive Officer and President Michael D. Mulford Senior Vice President ~z Chief Credit Officer 7 ‘ Russell L. Edwards Senior Vice President Retail Banking Richard J. Dutton Senior Vice President Chief Operating Officer lan Whinnem Senior Vice Presid
Slide 9: Who We Are
CIVISTA BANCSHARES, INC. BEST es : “=ctvistasanc s i sinnel | N O H | O encouraged and supported with corporate donations, matching 2023 CRAINS CLEVELAND BUSINESS gifts and employee volunteerism. TOP DIVERSITY EMPLOYER 2024 Best Banks to Work For United Way of Greater Cincinnati f that CARES
Slide 10: Current Events
» CIVISTA BANCSHARES, INC. Current Events
Slide 11: Deposits
Deposits ➢ 11.8%* or $352.0 million of deposits uninsured at June 30, 2024 ➢ Cash and unpledged securities of $456.8 million at June 30, 2024 ➢ Excluding $404.6 million of public deposits, Civista had no deposit concentrations at June 30, 2024 ➢ “Civista’s deposit franchise is one of our most valuab
Slide 12: Liquidity
Liquidity ➢ Strong on-balance sheet liquidity – $456.8 million of cash and unpledged securities at June 30, 2024 ➢ Ready access to off-balance sheet funding – Immediate access to $1.1 billion in funding from FHLB, Federal Reserve and CDARS/IntraFi ➢ Civista has not and does not anticipate using the
Slide 13: Credit
Credit ➢ Adopted CECL January 1, 2023 – $4.3 million increase in Allowance for Credit Losses – $3.4 million increase in Reserve for Unfunded Commitments ➢ Credit metrics remain stable and strong – ACL to nonperforming loans was 233.47% at June 30, 2024 – ACL to loans was 1.32% at June 30, 2024 13
Slide 14: Capital
Capital ➢ Civista continues to create capital through earnings ➢ “Well Capitalized” by regulatory standards ➢ Tangible Common Equity ratio was 6.18% at June 30, 2024 14
Slide 15: Strategic Initiatives
Strategic Initiatives ➢ Low/Lower Cost Funding ➢ Revenue Improvement – Ohio Homebuyer Plus Program – Identified opportunities for • Launched May 6, 2024 increased service charges • Potential for up to $100 million in • Treasury Management Fees deposits • Retail • 411 Accounts opened; $41.1 million i
Slide 16: Financial Trends
» CIVISTA BANCSHARES, INC. Financial Trends
Slide 17: Financial Highlights
Financial Trends Financial Highlights ($s in thousands, except per share data) June 30, June 30, 2024 2023 % Change Balance Sheet Assets $4,011,914 $3,615,980 10.95% Gross Loans (excluding HFS) 1 3,014,996 2,728,390 10.50% Deposits 2,977,616 2,942,774 1.18% June 30, June 30, 2024 2023 % Change Perfo
Slide 18: Total Assets
Financial Trends Total Assets1 ($ in millions) $4,012 $3,538 $3,616 $3,012 $2,763 $2,310 2019 2020 2021 2022 2023 2024 Q2 1. 2022 includes the addition of $316 million in assets due to Comunibanc Corp acquisition. 18
Slide 19: Total Gross Loans and Leases
Financial Trends Total Gross Loans and Leases1 ($ in millions) $3,015 $2,861 $2,547 $2,057 $1,998 $1,709 2019 2020 2021 2022 2023 2024 Q2 1. 2020 includes $217.3 million of PPP loans. 2021 includes $43.2 million of PPP loans. 2022 includes $819 thousand of PPP loans as well as $169 million due to th
Slide 20: Loan Mix
Financial Trends Loan Mix ($ in millions) ➢ Total Gross Loans: $3.0 billion C&D & Land, $285.0 , Lease Financing Rec, 9.4% Consumer & Other, $109.3 , 3.6% $15.0 , 0.5% CRE Non Owner, $920.7 , 30.4% Farmland, $29.6 , 1.0% Multi-Family, $296.0 , 9.8% C&I, $256.9 , 8.5% CRE Owner, $378.2 , 12.5% Single
Slide 21: CRE Non-Owner Concentrations
Financial Trends CRE Non-Owner Concentrations ($ in millions) Education/Institutional, Other, $62.13, 4.8% $32.52, 2.5% Entertainment/Recreation, $72.77, 5.6% Retail and Services, $293.35, 22.6% Guest Lodging, $136.15, 10.5% Healthcare, $63.24, 4.9% Restaurants, $48.87, 3.8% Industrial/Warehouse, Of
Slide 22: CRE Non-Owner Office Details
Financial Trends CRE Non-Owner Office Details ($ in millions) Office by Collateral Type Office CBD vs Suburban $21.18 $40.88 $135.06 $109.36 $264.17 Healthcare Office Mixed-use Office Office Central Business Disctrict Suburban 22
Slide 23: Civista Leasing and Equipment Financing
Financial Trends Civista Leasing and Equipment Financing ($ in millions) Operating Leases, $22.9 , ➢ 2024 YTD Production Financing 17.2% Leases, $53.5 , • YTD Funded: $50.4 million 40.3% • Sold: $25.8 million • Net Production: $24.6 million ➢ Average Yield on Total Portfolio: 9.27% ➢ Average Yield o
Slide 24: Nonaccruals & Past Due
Financial Trends NonaccrualNPAs & 90 & days 90+PD Past/Due Assets / Gross Loans Loan Loss Reserves / Gross Loans 0.57% 1.28% 1.30% 1.32% 0.53% 0.53% 1.22% 1.08% 0.41% 0.36% 0.86% 0.27% 2019 2020 2021 2022 2023 Q2 2024 2019 2020 2021 2022 2023 Q2 2024 Reserves / NPLs Net Chargeoff Ratio1 0.03% 496.10
Slide 25: Total Deposits
Financial Trends Total Deposits1 ($ in millions) $2,985 $2,978 $2,620 $2,417 $2,189 $1,679 2019 2020 2021 2022 2023 2024 Q2 25 1. 2022 includes the addition of $271 million in deposits due to the Comunibanc Corp acquisition.
Slide 26: Deposit Mix
Financial Trends Deposit Mix ➢ Total Deposits: $3.0 billion ➢ Loan/Deposit Ratio: 101.7% Noninterest Bearing Demand, $691.2 , Brokered Deposits, 23.2% $627.9 , 21.1% Cost of Cost of Year Deposits Funding 2019 0.48% 0.68% 2020 0.33% 0.43% 2021 0.17% 0.24% Certificates of 2022 0.15% 0.39% Deposit, $40
Slide 27: Total Cost of Deposits and Yield on Loans vs Peers
Financial Trends ➢ Total Cost of Deposits (%) 2.13% 2.01% 1.48% 1.18% 1.22% 1.18% 0.90% 0.75% 0.57% 0.48% 0.47% 0.33% 0.28% 0.21% 0.34% 0.17% 0.22% 0.15% 2019Y 2020Y 2021Y 2022Y 2023Y 2024Q2 CIVB Peer Median Peer Top Quartile Yield on Loans (%) 6.20% 5.90% 5.95% 5.67% 5.27% 5.26% 5.36% 5.06% 4.81% 4
Slide 28: Net Interest Margin
Financial Trends Net Interest Margin 4.28% 3.76% 3.77% 3.64% 3.66% 3.69% 3.69% 3.59% 3.51% 3.51% 3.35% 3.32% 3.30% 3.39% 3.31% 3.12% 3.12% 2.88% 2019Y 2020Y 2021Y 2022Y 2023Y MRQ CIVB Peer Median Peer Top Quartile 2024 peer data as of 6/30/2024, or the latest available date. Note: Comparable peers i
Slide 29: 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 $2.9 million YTD 2024 – Routing overflow calls to our retail staff and $3.6 million YTD 2023 – Manage/reduce overtime and staff
Slide 30: Capital Management
Financial Trends Capital Management ➢ November 2021 issued $75 million in 3.25% subordinated debt ➢ Authorized $13.5 million stock repurchase plan in April 2024 ➢ During 2024, no repurchases have been made ➢ Increased the quarterly common dividend to $0.16 per share in the third quarter 2023 ($s in
Slide 31: Providing Shareholder Value
Providing Shareholder Value 31
Slide 32: Net Income & Earnings Per Share
Providing Shareholder Value Net Income & Earnings Per Share (Available to Common)1 (LTM - $ in thousands) $50,000 $3.00 $2.60 $2.73 $45,000 $2.63 $2.50 $40,000 $35,000 $2.01 2 $2.14 $2.00 $2.00 $30,000 $25,000 $1.50 $20,000 $1.00 $15,000 $33,231 $32,192 $40,546 $39,427 $42,964 $33,466 $10,000 $0.50
Slide 33: Total Shareholders' Equity & Return on Tangible Equity
Providing Shareholder Value Total Shareholders’ Equity & Return on Tangible Equity1,2,3 ($ in thousands) 19.87% 18.13% 14.97% 13.57% 13.97% 12.14% $330,126 $350,108 $355,212 $334,836 $372,002 $373,808 2019 2020 2021 2022 2023 2024 Q2 1. LTM basis 2. Non-GAAP reconciliation on page 39 33 3. The chang
Slide 34: Tangible Book Value per Share
Providing Shareholder Value Tangible Book Value per Share1,2 $18.11 $16.68 $14.68 $15.10 $15.22 $12.61 2019 2020 2021 2022 2023 2024 1. Non-GAAP reconciliation on page 39 2. The change in the AOCI impact of unrealized losses on the investment portfolio on TBV/share from 12/31/21 to 12/31/22 was $4.2
Slide 35: Why Civista?
DK CIVISTA Why Civista?
Slide 36: Experienced Acquirer & Organic Growth Model
Why Civista? Experienced Acquirer & Organic Growth Model ➢ Completed 6 acquisitions since 2007, including the acquisition of Comunibanc Corp, which closed July 1, 2022 and acquisition of Vision Financial Group, which closed October 3, 2022 ➢ On June 27, 2022, opened de novo branch in Gahanna, Ohio,
Slide 37: Compelling Investment Opportunity
Why Civista? Compelling Investment Opportunity ➢ Community bank franchise poised for acquisitions and strong core deposit franchise ➢ Strong capital position ➢ Strong credit culture and asset quality ➢ Experienced acquirer ➢ Continued strong NIM ➢ Experienced management team with an average of 31 ye
Slide 38: Additional Information
DK CIVISTA Additional Information
Slide 39: Operating Results
Operating Results ($s in thousands, except per share data) Q2 LTM 2019 2020 2021 2022 2023 2024 Net Interest Income $85,100 $89,727 $95,425 $110,204 $125,496 $117,679 Provision for Loan Losses 1,035 10,112 830 1,752 4,435 6,602 Noninterest Income 22,443 28,182 31,452 29,077 37,163 35,995 Noninterest
Slide 40: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($s in thousands, except per share data) As of and for the Years Ended December 31, Q2 2019 2020 2021 2022 2023 2024 Tangible Common Equity Total Shareholder's Equity - GAAP $ 330,126 $ 350,108 $ 355,212 $ 334,835 $ 372,002 $ 373,808 Less: Goodwill and intangible assets 85,15
Slide 41: 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 42: Non-GAAP Reconciliation
Non-GAAP Reconciliation ($s in thousands) YTD 2022 Adjusted Efficiency ratio Noninterest expense - GAAP $ 90,493 Acquisition and integration expense (3,757) Adjusted noninterest expense 86,736 Net interest income - GAAP 110,204 Effect of tax-exempt income 2,092 Adjusted net interest income 112,296 N
Slide 43: Thank You
Thank You 43