Civista Bancshares, Inc. · NASDAQ:CIVB
Civista Bancshares — Q2 2024 Earnings Presentation
42 slides from Civista Bancshares's earnings presentation, Jul 30, 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 Exhibit 99.1
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
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 548 Employees Community Banking Focused Operations in 14 Ohio, 2 Indiana and 1 Kentucky Counties 41 Branches & 2 Loan Production Offices Operations in the 5 largest
Slide 6: Who We Are: Markets and Deposit Share
Who We Are Deposit market share information as of June 30, 2023. Sandusky/Norwalk/Port Clinton, Ohio 9 Locations $582 million in loans $1,385 million in deposits #1 deposit market share in Sandusky, Ohio with ~53% Cleveland/Akron, Ohio 3 Locations $921 million in loans $151 million in deposits North
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 position
Slide 8: Management Team
CIVISTA BANCSHARES, INC. Dennis G. Shaffer Chit Executive ofcer and sient fe: Michael D. Mulford sertorvespresden SME Chief Credit Officer Russell L. Edwards ( )) Retail Banking Richard J, Dutton Senior ident Chief Operating Officer Robert L. Curry, Jr. Senior Vice President Chief Risk officer nna M
Slide 9: Best Employers in Ohio
CIVISTA BANCSHARES, INC. BEST EMPLOYERS IN OHIO 2023 CRAIN CLEVELAND BUSINESS a i XXCIVISTABANK ove ie ee F Best Banks to Work For
Slide 10: Current Events
DK CIVISTA 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 valuable chara
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 Federal Re
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
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
Slide 15: Strategic Initiatives
Strategic Initiatives Revenue Improvement Identified opportunities for increased service charges Treasury Management Fees Retail Leasing Syndication Desk Expense Reduction Routing overflow calls to our retail staff reducing calls to 3rd party call center Analyze branch network Manage/reduce overtime
Slide 16: Financial Trends
DK CIVISTA Financial Trends
Slide 17: Financial Trends
Financial Trends June 30, 2024 includes $251 thousand of PPP loans; June 30, 2023 includes $403 thousand of PPP loans Presented on an annualized basis 3. Non-GAAP reconciliation on page 39
Slide 18: Financial Trends: Total Assets
Financial Trends Total Assets1 ($ in millions) 1. 2022 includes the addition of $316 million in assets due to Comunibanc Corp acquisition. CAGR 13.1%
Slide 19: Financial Trends: Total Gross Loans and Leases
Financial Trends Total Gross Loans and Leases1 ($ in millions) 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 the Comunibanc Corp acquisition. CAGR 13.4%
Slide 20: Financial Trends: Loan Mix
Financial Trends Total Gross Loans: $3.0 billion Loan Mix ($ in millions)
Slide 21: Financial Trends: CRE Non-Owner Concentrations
Financial Trends CRE Non-Owner Concentrations ($ in millions)
Slide 22: Civista Leasing and Equipment Financing
Financial Trends Civista Leasing and Equipment Financing ($ in millions) 2024 YTD Production YTD Funded: $50.4 million Sold: $25.8 million Net Production: $24.6 million Average Yield on Total Portfolio: 9.27% Average Yield on Q2 Originations: 9.75% Industry Concentrations: Propane, Recycling/Waste M
Slide 23: Financial Trends: Reserves and Charge-offs
1. LTM basis Financial Trends Reserves / NPLs Net Chargeoff Ratio1 Loan Loss Reserves / Gross Loans NPAs & 90+PD / Assets Loan Loss Reserves / Gross Loans Nonaccrual & 90 days Past Due / Gross Loans
Slide 24: Financial Trends: Total Deposits
Financial Trends Total Deposits1 ($ in millions) 1. 2022 includes the addition of $271 million in deposits due to the Comunibanc Corp acquisition. CAGR 13.6%
Slide 25: Financial Trends: Deposit Mix
* As of 6/30/2024 YTD Financial Trends Total Deposits: $3.0 billion Loan/Deposit Ratio: 101.7% Deposit Mix
Slide 26: Financial Trends: Cost of Deposits and Loan Yield vs Peers
2024 Peer data as of 6/30/2024 or the latest available date. Note: Comparable peers include public banks $1-$4B in Ohio and +/- 40% CIVB’s asset size in contiguous states. Total Cost of Deposits (%) Yield on Loans (%) Financial Trends
Slide 27: Financial Trends: Net Interest Margin vs Peers
Financial Trends 2024 peer data as of 6/30/2024, or the latest available date. Note: Comparable peers include public banks $1-$4B in Ohio and +/- 40% CIVB’s asset size in contiguous states. Net Interest Margin
Slide 28: Financial Trends: Fee Income and Expenses
Financial Trends 1. 2021 efficiency ratio is adjusted for nonrecurring items; 2022 efficiency ratio is adjusted for merger related expenses. Page 40 and 41 show Non-GAAP reconciliations Fee income platform Service charges on deposit accounts were $2.9 million YTD 2024 and $3.6 million YTD 2023 Mortg
Slide 29: Financial Trends: Capital Management
Financial Trends 1. TCE Non-GAAP reconciliation on page 39 2. LTM basis 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 th
Slide 30: Providing Shareholder Value
Providing Shareholder Value
Slide 31: Net Income & Earnings Per Share
1. Q2 2024 presented on LTM basis Providing Shareholder Value Net Income & Earnings Per Share (Available to Common)1 (LTM - $ in thousands)
Slide 32: Total Shareholders' Equity & Return on Tangible Equity
1. LTM basis 2. Non-GAAP reconciliation on page 39 3. The change in the AOCI impact of unrealized losses on the investment portfolio from 12/31/21 to 12/31/22 was $67.4 million Providing Shareholder Value Total Shareholders’ Equity & Return on Tangible Equity1,2,3 ($ in thousands)
Slide 33: Tangible Book Value per Share
Providing Shareholder Value 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 $4.29 Tangible Book Value per Share1,2
Slide 34: Why Civista?
Why Civista?
Slide 35: Why Civista? Acquirer and Organic Growth Model
Why Civista? 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, located in Franklin County (Columbus MSA) Experi
Slide 36: Why Civista?
Why Civista? 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 years in banking Strategically positioned in att
Slide 37: Additional Information
> CIVISTA BANCSHARES, INC. Additional Information
Slide 38: Operating Results
BANCSHARES, INC. x CIVISTA Operating Results (Ss in thousands, except per share data) 2020 2024 2022 Net Interest Income $85,100 $89,727 $95,425 $110,204 | $125,496 | $117,679 Provision for Loan Losses 1,035 10,112 830 4,752 4,435 6,602 Noninterest Income 22,443 28,182 31,452 29,077 37,163, 35,995 N
Slide 39: Non-GAAP Reconciliation
Non-GAAP Reconciliation 1. LTM basis
Slide 40: Non-GAAP Reconciliation 2021
BANCSHARES, INC. > CIVISTA Non-GAAP Reconciliation ($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 s
Slide 41: Non-GAAP Reconciliation 2022
BANCSHARES, INC. > CIVISTA 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 n
Slide 42: Thank You
dK clvista Thank You