Civista Bancshares, Inc. · NASDAQ:CIVB
Civista Bancshares — Q2 2023 Earnings Presentation
42 slides from Civista Bancshares's earnings presentation, Jul 28, 2023
Slide 1: Investor Presentation Second Quarter 2023
Investor Presentation Second Quarter 2023 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
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 508 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 $162 million in loans $439 million in loans $192 $1,390 million in deposits million in deposits #1 deposit market share in Sandusky, 17% deposit market Ohio with ~53% share Vision Financial
Slide 7: Who We Are
Who We Are Community bank franchise in growth markets with an established operating model – Gather attractive low‐cost deposits (107 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
CIVISTA Who We Are BANCSHARES, INC. Dennis G. Shaffer Richard J. Dutton Charles A. Parcher , Chief Executive Officer Senior Vice President Senior Vice President and President Chief Operating Officer Chief Lending Officer Paul J. Stark Robert L. Curry, Jr. / Todd A. Michel i Lance A. Morrison Senior
Slide 9: Who We Are
CIVISTA BANCSHARES, INC. CRAIN'S CLEVELAND BUSINESS el Bie. | ‘i ff BEST ers x CIVISTABANK | N O H | O ) donations, matching go22 : gifts and employee MULTI- YEAR WINNER : <a ‘ 4 volunteerism. is strongly encouraged and supported with corporate EMPLOYER MEMBER Bank Director RANKING BANKING. THE BEST
Slide 10: Current Events
» CIVISTA BANCSHARES, INC. Current Events
Slide 11: Deposits
Deposits 13.2%* or $390.7 million of deposits uninsured at June 30, 2023 Cash and unpledged securities of $415.5 million at June 30, 2023 Deposits, excluding tax program and brokered deposits, declined 2.3% from December 31, 2022 to June 30, 2023 Excluding $378.2 million of public deposits,
Slide 12: Liquidity
Liquidity Strong on‐balance sheet liquidity – $415.5 million of cash and unpledged securities at June 30, 2023 Ready access to off‐balance sheet funding – Immediate access to $1.3 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 – $3.4 million increase in Reserve for Unfunded Commitments Credit metrics remain stable and strong – ACL to nonperforming loans was 327.05% at June 30, 2023 – ACL to loans was 1.33% at June 30, 2023 13
Slide 14: Capital
Capital Civista continues to create capital through earnings “Well Capitalized” by regulatory standards Tangible Common Equity ratio was 6.16% at June 30, 2023 14
Slide 15: Financial Trends
» CIVISTA BANCSHARES, INC. Financial Trends
Slide 16: Financial Trends: Financial Highlights
Financial Trends Financial Highlights ($s in thousands, except per share data) June 30, June 30, 2023 2022 % Change Balance Sheet Assets $3,615,980 $3,039,099 18.98% Gross Loans (excluding HFS) 1 2,636,280 2,064,221 27.71% Deposits 2,942,774 2,455,502 19.84% June 30, June 30, 2023 2022 % Change Perf
Slide 17: Total Assets
Financial Trends Total Assets1 ($ in millions) $3,538 $3,616 $3,012 $2,763 $2,310 $2,139 2018 2019 2020 2021 2022 2023 Q2 1. 2018 includes the addition of $578 million in assets due to United Community Bancorp acquisition. 2022 includes the addition of $316 million in assets due to Comunibanc Corp a
Slide 18: Total Gross Loans
Financial Trends Total Gross Loans1 ($ in millions) $2,636 $2,547 $2,057 $1,998 $1,709 $1,562 2018 2019 2020 2021 2022 2023 Q2 1. 2018 includes the addition of $299 million in loans due to United Community Bancorp acquisition. 2020 includes $217.3 million of PPP loans. 2021 includes $43.2 million of
Slide 19: Loan Mix
FinancialTrends Loan Mix ($ in millions) Total Gross Loans: $2.6 billion 19
Slide 20: VFG Lease and Equipment Financing
FinancialTrends VFG Lease and Equipment Financing ($ in millions) 2023 YTD Production • YTD Funded: $64.1 million • Sold: $22.0 million • Net Production: $42.1 million Average Yield on Total Portfolio: 7.70% Average Yield on Q2 Originations: 8.76% 20
Slide 21: Nonaccrual, NPAs and Loan Loss Reserves
Financial Trends NonaccrualNPAs & 90 & days 90+PD Past/Due Assets / Gross Loans Loan Loss Reserves / Gross Loans 0.64% 1.33% 1.33% 1.22% 0.53% 1.12% 0.43% 0.41% 0.88% 0.86% 0.36% 0.27% 2018 2019 2020 2021 2022 Q2 2023 2018 2019 2020 2021 2022 Q2 2023 Reserves / NPLs NCOs / Average Loans 1 0.02% 496.
Slide 22: Total Deposits
Financial Trends Total Deposits1 ($ in millions) $2,942 $2,620 $2,417 $2,189 $1,679 $1,580 2018 2019 2020 2021 2022 2023 Q2 1. 2018 includes the addition of $476 million in deposits due to United Community Bancorp acquisition. 2022 includes the addition of $271 million in deposits 22 due to the Comu
Slide 23: Deposit Mix
Financial Trends Deposit Mix Total Deposits: $2.9 billion Loan/Deposit Ratio: 89.6% Cost of Cost of Year Deposits Funding 2018 0.28% 0.73% 2019 0.48% 0.68% 2020 0.33% 0.43% 2021 0.17% 0.24% 2022 0.15% 0.39% 2023 1.07% 1.51% 23
Slide 24: Cost of Deposits and Yield on Loans vs Peers
Financial Trends Total Cost of Deposits (%) 1.07% 1.10% 0.93% 0.93% 0.90% 0.71% 0.71% 0.66% 0.47% 0.48% 0.33% 0.28% 0.29% 0.27% 0.22% 0.22% 0.21% 0.17% 2018Y 2019Y 2020Y 2021Y 2022Y 2023Q2 CIVB Peer Median Peer Top Quartile Yield on Loans (%) 5.87% 5.72% 5.27% 5.42% 5.27% 5.42% 5.30% 5.04% 4.91% 5
Slide 25: Net Interest Margin
Financial Trends Net Interest Margin 4.31% 4.21% 3.86% 3.81% 3.86% 3.88% 3.69% 3.70% 3.70% 3.75% 3.74% 3.66% 3.47% 3.47% 3.45% 3.39% 3.31% 3.33% 2018Y 2019Y 2020Y 2021Y 2022Y 2023Q2 CIVB Peer Median Peer Top Quartile 2023 peer data as of 6/30/2023, 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 $3.6 million YTD 2023 and $3.1 million YTD 2022 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 November 202
Slide 28: Providing Shareholder Value
Providing Shareholder Value 28
Slide 29: Net Income & Earnings Per Share
Providing Shareholder Value Net Income & Earnings Per Share (Available to Common) (LTM ‐ $ in thousands) 1. Q2 2023 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 thousands) 1. LTM basis 2. Non‐GAAP reconciliation on page 37 30 3. The change in the AOCI impact of unrealized losses on the investment portfolio from 12/31/21 to 12/31/22 was $67.4 million and to 3/31/23
Slide 31: Tangible Book Value per Share
Providing Shareholder Value Tangible Book Value per Share1,2 $18.11 $16.68 $14.68 $13.03 $13.59 $12.61 2018 2019 2020 2021 2022 2023 1. Non‐GAAP reconciliation on page 37 31 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 $
Slide 32: Why Civista?
» CIVISTA BANCSHARES, INC. Why Civista?
Slide 33: 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 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 31 ye
Slide 35: Additional Information
» CIVISTA BANCSHARES, INC. Additional Information
Slide 36: Operating Results
Operating Results ($s in thousands, except per share data) Q2 LTM 2018 2019 2020 2021 2022 2023 Net Interest Income $66,107 $85,100 $89,727 $95,425 $110,204 $126,944 Provision for Loan Losses 780 1,035 10,112 830 1,752 2,533 Noninterest Income 18,131 22,443 28,182 31,452 29,077 36,016 Noninterest Ex
Slide 37: Non-GAAP Reconciliation
Non‐GAAP Reconciliation ($s in thousands, except per share data) As of and for the Years Ended December 31, Q2 2018 2019 2020 2021 2022 2023 Tangible Common Equity Total Shareholder's Equity - GAAP $ 298,898 $ 330,126 $ 350,108 $ 355,212 $ 334,835 $ 349,876 Less: Preferred Equity 9,364 - - - - - Les
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) 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-inter
Slide 40: 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 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