Civista Bancshares, Inc. · NASDAQ:CIVB
Civista Bancshares — Q3 2015 Earnings Presentation
28 slides from Civista Bancshares's earnings presentation, Nov 10, 2015
Slide 1: Investor Presentation Third Quarter 2015
Investor Presentation Third Quarter 2015 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
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 th
Slide 3: Contact Information
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 1/40th ownership interest in a Series B Preferred Share, are traded on the NASDAQ Capital Market under the symbol “CIVBP.”
Slide 4: Corporate Overview
Corporate Overview 9th Largest Publicly Traded Commercial Bank in Ohio Community Banking Focused Operations in 12 Ohio Counties 27 Branches & 1 Loan Production Office Operations in Stable Ohio Markets Acquisitive Franchise Poised for Future Growth Corporate Overview Full-Service Banking Organization
Slide 5: Financial Highlights
Financial Highlights - Tangible book value excludes Goodwill and other intangible assets from the book value calculation - ROATCE equals annualized net income, adjusted for amortization of intangibles, divided by average common equity minus average intangible assets
Slide 6: Investment Highlights
Investment Highlights Experienced management team with strong track record Leading Ohio community bank franchise focused on rural and targeted urban markets Demonstrated organic growth and proven acquirer Opened Loan Production Office on east side of Cleveland (Mayfield Heights) in Q1 2015 Completed
Slide 7: Experienced Management Team
Experienced Management Team Chairman, President & CEO 41 years of banking experience Joined in 1986 James O. Miller SVP & Chief Operating Officer 29 years of banking experience Joined in 2007 Richard J. Dutton EVP, Chief Lending Officer & President of Civista Bank 30 years of banking experience Join
Slide 8: Branch Footprint
Branch Footprint Note: Branch information as of June 30, 2015. Sandusky / Akron / Cleveland, Ohio $571 million in loans $597 million in deposits 11 branch locations #1 deposit market share in Sandusky, Ohio with ~ 43% market share North Central Ohio $94 million in loans $181 million in deposits 7 br
Slide 9: Attractive Target Markets
Attractive Target Markets Sandusky / Akron / Cleveland North Central Ohio West Central Ohio Greater Dayton Ohio
Slide 10: Proven Acquirer & Attractive Organic Growth
Proven Acquirer & Attractive Organic Growth Acquired six banks from 1998 – 2015, serving to increase assets by over $800 million Expanded commercial loan growth in Columbus, Cleveland, Akron and Dayton markets Since year-end 2010, loan portfolios in these markets have increased from $117 million to
Slide 11: TCNB Transaction Highlights
TCNB Transaction Highlights TCNB Financial Corp. Citizens National Bank of Southwestern Ohio Closed and integrated in March 2015 Single Bank Holding Company & Bank Organized in 1999 Total Assets of $97 million Expands Civista’s Presence into the Greater Dayton, Ohio Area Dayton Huber Heights Miamisb
Slide 12: Successful Rebranding
Successful Rebranding Brand Differentiation 316 “Citizens” Banks in the United States 16 “Citizens” Banks in Ohio Alone Citizens / Champaign Bank Branding Confusing for Existing Customers Avoid Customer Identity Confusion on the Internet Why Rebrand? NASDAQ: CIVB
Slide 13: Deposit Mix Q3 2015
Deposit Mix Q3 2015 Cost of Interest Bearing Deposits: 0.28% Total Deposits: $1.1 billion
Slide 14: Loan Mix Q3 2015
Loan Mix Q3 2015 Loan Yield: 4.56% Total Gross Loans: $1.0 billion
Slide 15: Improving Asset Quality
Improving Asset Quality Reserves / NPLs NCOs / Average Loans Loan Loss Reserves / Gross Loans NPAs & 90+PD / Assets Loan Loss Reserves / Gross Loans NPAs & 90+PD / Assets
Slide 16: Asset Quality Improvement
Asset Quality Improvement NPAs & 90+ Days Delinquent as of 9/30/2015 NPAs & 90+ Days Delinquent as of 12/31/2010 Gross Loans: $767 million Gross Loans: $1.0 billion
Slide 17: Peer Leading Net Interest Margin
Peer Leading Net Interest Margin Source: SNL Financial. Comparable peers represents banks located in Ohio, Indiana, and Kentucky with total assets between $1.0 billion and $5.0 billion; excludes merger targets.
Slide 18: Effectively Managing Duration
Effectively Managing Duration Asset duration of less than two years Sell fixed rate mortgages Encourage variable rate commercial lending or swap into variable, if appropriate Limit fixed rate terms to five years Liability duration greater than three years Focus on low-cost “sticky” demand deposits D
Slide 19: Non-Interest Metrics & Initiatives
Non-Interest Metrics & Initiatives ¹ From American Banker Magazine, September 2015 © 2015 SourceMedia, Inc. All rights reserved. Used by permission and protected by the Copyright Laws of the United States. The printing, copying, redistribution, or retransmission of this Content without expressed wri
Slide 20: Profitability & Returns Analysis
Profitability & Returns Analysis ¹ LTM basis. Diluted Earnings per Share ROATCE ROAA Net Income Available to Common Shareholders
Slide 21: Capital Position
CIVISTA Capital Position ($s in thousands, except per share data) For the Years Ended December 31, Q3 2011 2012 2013 2015 Converted Total Equity $102,528 $103,980 $128,376 ~=——$115,909 $123,337 $123,337) Preferred Equity $23,151 $23,184 $46,316 $23,132, $22,273 $0| Common Equity $79,377 $80,796 $82,
Slide 22: Increasing Shareholder Value
Increasing Shareholder Value Source: SNL Financial. Market Data as of June 30, 2015. ¹ Comparable peers represents banks located in Ohio, Indiana, and Kentucky with total assets between $1.0 billion and $5.0 billion; excludes merger targets. Stock Price Dividend yield of 1.97% Dividend payout ratio
Slide 23: Commitment to Shareholders
Commitment to Shareholders Long-term Shareholder Value through Growth and Profitability
Slide 24: Strategic Focus & Growth Strategy
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 quality Effi
Slide 25: The Civista Story
The Civista Story Strong and Seasoned Management Team Leading Ohio Community Banking Franchise Proven and Disciplined Acquirer Attractively Valued Versus Peers Platform to Support Future Growth
Slide 26: Appendix
BANCSHARES, INC. Appendix
Slide 27: Operating Results
CIVISTA Operating Results BANCSHARES, INC. (Ss in thousands, except per share data) LT as 2015 Net Interest Income 40273 $4141 $41,961 $40,578 «$30,974 $41,806 $45,984 Provision for Loan Losses 13,323 17,940 9,800 6,400 41,100 41,500 4,200 Noninterest Income 9,633 9,154 9971 11,200 12,062 13,874 13,
Slide 28: Thank You
Thank You