Civista Bancshares, Inc. · NASDAQ:CIVB
Civista Bancshares — Q4 2021 Earnings Presentation
43 slides from Civista Bancshares's earnings presentation, Feb 4, 2022
Slide 1: Investor Presentation Fourth Quarter 2021
Investor Presentation Fourth Quarter 2021 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 447 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: Regional Markets
Who We Are Sandusky/Norwalk/Port Clinton, Cleveland/Akron, Ohio Ohio 9 Locations 3 Locations $446 million in loans $628 million in loans $938 million in deposits $138 million in #1 deposit market share in Sandusky, deposits Ohio with ~52% market share Columbus & West Central, Ohi
Slide 7: Who We Are
Who We Are Community bank franchise in growth markets with an established operating model – Gather attractive low‐cost deposits (17 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: Management Team
Who We Are Dennis G. Shaffer Charles A. Parcher Richard J. Dutton CEO & President SVP & Chief SVP & Chief President, Civista Lending Officer Operating Officer Bank 33 years of 36 years of 36 years of banking banking banking experience experience experience Joined in 2016 Joined in
Slide 9: Best Employers in Ohio Awards
CIVISTA BANCSHARES, INC. BEST EMPLOYERS IN OHIO! 2021 CRAIN’S CLEVELAND BUSINESS MULTI- YEAR WINNER 2021 fe 2020 % 2019 2021 ) Jobs EMPLOYER MEMBER Best Banks to Work For 2013-2020
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: COVID-19 Deferrals
Current Initiatives COVID‐19 Deferrals During 2020, Civista granted temporary payment modifications on a total of 813 loans totaling $431.1 million under the provisions of the CARES Act. Remaining loans modified under COVID‐19 Programs at December 31, 2021: $s in thousands $s in thousands % of
Slide 15: Current Initiatives: SBA Paycheck Protection Program
Current Initiatives SBA Paycheck Protection Program Originated $399.4 million in PPP loans – 2,360 loans for $268.3 million in Round 1 with $9.9 million in fees – 1,340 loans for $131.1 million in Round 2 with $6.6 million in fees Provided assistance to more than 3,500 businesses and their ove
Slide 16: Current Initiatives: Leveraging Technology
Current Initiatives Leveraging Technology Enhance utilization of technology to improve efficiency and customer experience – Curbside banking – E‐Sign – Digital Transformation Enhanced Treasury Management Services and Reporting Improved in‐branch and online access – Retail – Commercial • Intr
Slide 17: Civista Digital Banking
Current Initiatives Civista Digital Banking 17
Slide 18: Financial Trends
» CIVISTA BANCSHARES, INC. Financial Trends
Slide 19: Financial Highlights
Financial Trends Financial Highlights ($s in thousands, except per share data) December 31, December 31, 2021 2020 % Change Balance Sheet Assets $3,011,983 $2,762,918 9.01% Gross Loans (excluding HFS) 1 1,997,879 2,057,502 (2.90%) Deposits 2,416,701 2,189,398 10.38% December 31, December 31, 2021 20
Slide 20: Total Assets
Financial Trends Total Assets1 ($ in millions) $3,012 $2,763 $2,310 $2,139 $1,526 $1,377 2016 2017 2018 2019 2020 2021 1. 2018 includes the addition of $578 million in assets due to United Community Bancorp acquisition 20
Slide 21: Total Gross Loans
Financial Trends Total Gross Loans1 ($ in millions) $2,057 $1,998 $1,709 $1,562 $1,165 $1,056 2016 2017 2018 2019 2020 2021 1. 2021 includes $43.2 million of PPP Loans. 2020 includes $217.3 million of PPP loans. 2018 includes the addition of $299 million in loans due to United Community Bancorp acqu
Slide 22: Loan Mix
FinancialTrends Loan Mix ($ in millions) Total Gross Loans: $2.0 billion CRE to RBC Ratio: 291.5% 22
Slide 23: Asset Quality: Nonaccrual, NPAs and Reserves
Financial Trends Nonaccrual NPAs & 90 days & 90+PD Past/Due 2 / Gross Loans Assets Loan Loss Reserves / Gross Loans 0.66% 1.33% 1.26% 1.22% 0.57% 1.13% 0.53% 0.50% 0.88% 0.86% 0.34% 0.26% 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 Reserves / NPLs NCOs / Average Loans 0.02% 0.02% 496
Slide 24: Total Deposits
Financial Trends Total Deposits1 ($ in millions) $2,417 $2,189 $1,679 $1,580 $1,205 $1,121 2016 2017 2018 2019 2020 2021 1. 2018 includes the addition of $476 million in deposits due to United Community Bancorp acquisition 24
Slide 25: Deposit Mix
Financial Trends Deposit Mix Total Deposits: $2.4 billion Loan/Deposit Ratio: 82.4%1 33% Noninterest Bearing Demand Deposits are 73% Commercial and 27% Retail Cost of Cost of Year Deposits Funding 2016 0.20% 0.26% 2017 0.19% 0.46% 2018 0.28% 0.73% 2019 0.48% 0.68% 2020 0.33% 0.43% 2021 0.17% 0
Slide 26: Total 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% 0.43% 0.32% 0.33% 0.29% 0.28% 0.29% 0.20% 0.19% 0.22% 0.17% 2016Y 2017Y 2018Y 2019Y 2020Y 2021Y 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 27: Net Interest Margin
Financial Trends Net Interest Margin 4.31% 4.21% 3.93% 4.01% 3.79% 3.86% 3.81% 3.75% 3.69% 3.70% 3.70% 3.61% 3.66% 3.48% 3.47% 3.47% 3.45% 3.31% 2016Y 2017Y 2018Y 2019Y 2020Y 2021Y CIVB Peer Median Peer Top Quartile 2021 peer data as of 12/31/2021, or the latest available date. Note: Comparable peer
Slide 28: 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 $5.9 million during 2021 and $5.3 million during 2020 Continued focus on review of branch network Mortgage Banking – Two br
Slide 29: 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 30: Providing Shareholder Value
Providing Shareholder Value 30
Slide 31: Net Income & Earnings Per Share
Providing Shareholder Value Net Income & Earnings Per Share (Available to Common) ($ in millions) 1. LTM basis 2. Page 42 shows 2018 ratios adjusted for merger related expenses 31
Slide 32: Total Shareholders' Equity & Return on Tangible Equity
Providing Shareholder Value Total Shareholders’ Equity & Return on Tangible Equity2 ($ in millions) 1. LTM basis 2. Non‐GAAP reconciliation on page 39 32
Slide 33: Tangible Book Value per Share
Providing Shareholder Value Tangible Book Value per Share1 $18.28 $16.82 $14.77 $13.68 $13.14 $10.84 2016 2017 2018 2019 2020 2021 1. Non‐GAAP reconciliation on page 39 33
Slide 34: Why Civista?
» CIVISTA BANCSHARES, INC. Why Civista?
Slide 35: Experienced Acquirer & Organic Growth Model
Why Civista? Experienced Acquirer & Organic Growth Model Completed 3 acquisitions since 2007, including the acquisition of United Community Bancorp, which closed September 14, 2018 Expanded commercial loan growth in Columbus, Cleveland, Akron, Dayton and Cincinnati markets – Since year‐end 2015,
Slide 36: Compelling Investment Opportunity
Why Civista? Compelling Investment Opportunity Community bank franchise poised for acquisitions and strong core deposit franchise Strong capital position Strong credit culture and asset quality Experienced acquirer Continued strong NIM Experienced management team with an average of 30 ye
Slide 37: Additional Information
» CIVISTA BANCSHARES, INC. Additional Information
Slide 38: Operating Results
Operating Results ($s in thousands, except per share data) 2016 2017 2018 2019 2020 2021 Net Interest Income $50,259 $54,502 $66,107 $85,100 $89,727 $95,425 Provision for Loan Losses (1,300) 0 780 1,035 10,112 830 Noninterest Income 16,132 16,334 18,131 22,443 28,182 31,452 Noninterest Expense 43,85
Slide 39: Non-GAAP Reconciliation
Non‐GAAP Reconciliation ($s in thousands, except per share data) As of and for the Years Ended December 31, 2016 2017 2018 2019 2020 2021 Tangible Common Equity Total Shareholder's Equity - GAAP $ 137,616 $ 184,461 $ 298,898 $ 330,126 $ 350,108 $ 355,212 Less: Preferred Equity 18,950 17,358 9,364 -
Slide 40: 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 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, 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 43: Thank You
Thank You 43