Civista Bancshares, Inc. · NASDAQ:CIVB
Civista Bancshares — Q2 2016 Earnings Presentation
26 slides from Civista Bancshares's earnings presentation, Aug 2, 2016
Slide 1: Investor Presentation Second Quarter 2016
Investor Presentation Second Quarter 2016 James O. Miller - Chairman, President & Chief Executive Officer Dennis G. Shaffer - Executive Vice President & President of Civista Bank Richard J. Dutton - Senior Vice President, Chief Operating Officer Exhibit 99.1
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements Comments made in this presentation include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to numerous assumptions, risks and uncertainties. Although management believes that
Slide 3: Contact Information
3 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 th ownership interest in a Series B Preferred Share, are traded on the NASDAQ Capital Market under the symbol “CIVBP.” Ad
Slide 4: Corporate Overview
Corporate Overview Key Facts 4 Corporate Rebranding ¹ Market data as of July 22, 2016. Corporate Overview th Largest Publicly Traded Commercial Bank in Ohio Community Banking Focused Operations in 12 Ohio Counties – 27 Branches & 1 Loan Production Office Operations in 4 of the top 5 Ohio MSAs Acquis
Slide 5: Financial Highlights
5 - Diluted EPS calculated as if all preferred shares have converted to common - ROATCE equals annualized net income, adjusted for amortization of intangibles, divided by average common equity minus average intangible assets Financial Highlights ($s in thousands, except per share data) June 30, 2016
Slide 6: Investment Highlights
6 1 Defined as nonaccrual loans and leases, renegotiated loans and leases and other real estate owned Investment Highlights Experienced management team with strong track record Leading Ohio community bank franchise focused on rural and targeted urban markets – Gather attractive low-cost rural deposi
Slide 7: Investment Highlights
7 - ROATCE equals annualized net income, adjusted for amortization of intangibles, divided by average common equity minus average intangible assets Investment Highlights Demonstrated earnings growth – YTD FTE Net Interest Margin 3.81% - We have maintained this level over the last twelve months in th
Slide 8: Experienced Management Team
8 James O. Miller Richard J. Dutton Charles A. Parcher James E. McGookey Todd A. Michel John A. Betts Paul J. Stark Dennis G. Shaffer Experienced Management Team Chairman, President & CEO 42 years of banking experience Joined in 1986 SVP & Chief Operating Officer 30 years of banking experience Joine
Slide 9: Branch Footprint
9 Note: Market share information as of June 30, 2015. Branch Footprint Sandusky / Akron / Cleveland, Ohio $612 million in loans $656 million in deposits 11 branch locations #1 deposit market share in Sandusky, Ohio with ~ 43% market share North Central Ohio $86 million in loans $176 million in depos
Slide 10: Attractive Target Markets
10 10 Attractive Target Markets North Central Ohio Sandusky / Akron / Cleveland West Central Ohio Greater Dayton Ohio
Slide 11: Proven Acquirer & Attractive Organic Growth
11 Total Assets Total Gross Loans Total Deposits Proven Acquirer & Attractive Organic Growth Expanded commercial loan growth in Columbus, Cleveland, Akron and Dayton markets – Since year-end 2011, loan portfolios in these markets have increased from $163 million to $415 million through Q2 2016 Maint
Slide 12: Deposit Mix and Total Cost of Deposits
12 2016 Peer data as of June 30, 2016, or the latest available date. Source: SNL Financial. Comparable peers represents banks located in OH, IN, IL, MI, WI, WV and PA with total assets between $1.0 billion and $2.0 billion. Total Cost of Deposits (%) Deposit Mix 2016 Total Cost of Deposits: 0.15% 31
Slide 13: Loan Mix and Yield on Loans
13 2016 Peer data as of June 30, 2016, or the latest available date. Source: SNL Financial. Comparable peers represents banks located in OH, IN, IL, MI, WI, WV and PA with total assets between $1.0 billion and $2.0 billion. Yield on Loans (%) Loan Mix 2016 Loan Yield: 4.69% Total Gross Loans: $1.0 b
Slide 14: Improving Asset Quality
14 Reserves / NPLs NCOs / Average Loans Loan Loss Reserves / Gross Loans NPAs & 90+PD / Assets Loan Loss Reserves / Gross Loans NPAs & 90+PD / Assets Improving Asset Quality 3.51% 3.32% 2.22% 1.57% 1.01% 1.02% 2011 2012 2013 2014 2015 Q2 2016 2.70% 2.42% 1.92% 1.56% 1.43% 1.41% 2011 2012 2013 2014 2
Slide 15: Effectively Managing Assets & Liabilities
15 Investment Portfolio Snapshot SECTOR BREAKDOWN Effectively Managing Assets & Liabilities Asset duration of less than two years Sell fixed-rate mortgages Encourage variable-rate commercial lending or swap into variable, if appropriate Limit fixed-rate terms to five years Liability duration greater
Slide 16: Peer Leading FTE Net Interest Margin
16 2016 Peer data as of June 30, 2016, or the latest available date. Source: SNL Financial. Comparable peers represents banks located in OH, IN, IL, MI, WI, WV and PA with total assets between $1.0 billion and $2.0 billion. Peer Leading FTE Net Interest Margin 4.00% 3.98% 3.79% 3.79% 3.96% 3.81% 3.7
Slide 17: Non-Interest Metrics & Initiatives
17 ¹ From American Banker Magazine, September 2015 © 2015 SourceMedia, Inc. All rights reserved. Used by permission and protected by the Copyright Laws of the United States. The printing, copying, redistribution, or retransmission of this Content without expressed written permission is prohibited. E
Slide 18: Profitability & Returns Analysis
18 1 LTM basis Diluted Earnings per Share ROATCE ROAA Net Income Available to Common Shareholders Profitability & Returns Analysis $2,782 $4,386 $5,020 $7,655 $11,168 $14,794 2011 2012 2013 2014 2015 2016 Q2¹ 0.35% 0.49% 0.53% 0.77% 0.95% 1.21% 2011 2012 2013 2014 2015 2016 Q2 $0.36 $0.57 $0.64 $0.8
Slide 19: Capital Position
19 As 2011 2012 2013 2014 2015 2016 Q2 Converted For the Years Ended December 31, Capital Position ($s in thousands, except per share data) Total Equity $102,528 $103,980 $128,376 $115,909 $125,173 $136,203 $136,203 Preferred Equity $23,151 $23,184 $46,316 $23,132 $22,273 $22,124 $0 Common Equity $7
Slide 20: Increasing Shareholder Value
20 Source: SNL Financial. Market Data as of June 30, 2016, or the latest available date. ¹ Comparable peers represents banks located in OH, IN, IL, MI, WI, WV and PA with total assets between $1.0 billion and $2.0 billion. Stock Price Stock Price Performance vs. Peers Increasing Shareholder Value Pr
Slide 21: Commitment to Shareholders
21 Commitment to Shareholders Long-term Shareholder Value through Growth and Profitability
Slide 22: Strategic Focus & Growth Strategy
22 Strategic Focus & Growth Strategy Organic growth – Capitalize on commercial and consumer lending opportunities – Grow core deposit base in rural and targeted urban markets – Identify and evaluate loan production opportunities in select metro markets Acquisition opportunities – Rural – Urban Asset
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Slide 24: The Civista Story
24 Proven and Disciplined Acquirer The Civista Story Attractively Valued Versus Peers Strong and Seasoned Management Team Leading Ohio Community Banking Franchise Platform to Support Future Growth
Slide 25: Compelling Investment Opportunity
25 Peer data as of June 30, 2016, or the latest available date. Compelling Investment Opportunity Trading at a discount to peers on a Price/Tangible Book Value basis and a substantial discount on a Price/LTM EPS basis. Superior asset quality Proven acquirer Peer leading NIM – Low cost deposits – 23
Slide 26: Thank You
Thank You