Civista Bancshares, Inc. · NASDAQ:CIVB
Civista Bancshares — Q2 2018 Earnings Presentation
31 slides from Civista Bancshares's earnings presentation, Jul 31, 2018
Slide 1: Investor Presentation Second Quarter 2018
Investor Presentation Second Quarter 2018 Dennis G. Shaffer - President & Chief Executive Officer Richard J. Dutton - Senior Vice President, Chief Operating Officer NASDAQ: CIVB Exhibit 99.1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This investor presentation contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking st
Slide 3: Additional Information
Additional Information ADDITIONAL INFORMATION ABOUT THE PROPOSED TRANSACTION This investor presentation contains information with respect to the proposed transaction involving Civista and United. In connection with the proposed transaction, Civista intends to file a registration statement on Form S-
Slide 4: 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 5: Corporate Overview
Corporate Overview Bank originally founded in 1884 10th Largest Publicly Traded Commercial Bank Headquartered in Ohio Community Banking Focused Operations in 12 Ohio Counties 1 27 Branches & 2 Loan Production Offices Operations in 4 of the 5 largest Ohio MSAs Franchise Poised for Acquisitions and Or
Slide 6: Experienced Management Team
Experienced Management Team Dennis G. Shaffer SVP & Chief Operating Officer 32 years of banking experience Joined in 2007 Richard J. Dutton SVP & Chief Lending Officer 30 years of banking experience Joined in 2016 Charles A. Parcher SVP & General Counsel 16 years of banking experience Joined in 2002
Slide 7: Branch Footprint
Branch Footprint Note: Market share information as of June 30, 2017. Sandusky / Akron / Cleveland, Ohio $741 million in loans $676 million in deposits 12 locations #1 deposit market share in Sandusky, Ohio with ~ 50% market share North Central Ohio $76 million in loans $176 million in deposits 7 loc
Slide 8: Attractive Target Markets
Attractive Target Markets North Central Ohio West Central Ohio Greater Dayton Ohio Sandusky / Akron / Cleveland Development Opportunity - Toledo
Slide 9: Investment Highlights
Investment Highlights Experienced management team with a deep bench Community bank franchise in growth markets with an established operating model Gather attractive low-cost rural deposits (20 bps total cost of deposits) Generate loans in select growing urban markets (operations in 4 of the 5 larges
Slide 10: Financial Highlights
Financial Highlights Source: Company Management and SNL Financial. 1 Pages 28 & 29 show 2018 ratios adjusted for merger related expense 2 Non-GAAP reconciliation on page 30.
Slide 11: Increasing Shareholder Value
Increasing Shareholder Value Source: Company management and SNL Financial. 1 LTM basis 2 Non-GAAP reconciliation on page 30 . Tangible Book Value per Share2 Diluted EPS
Slide 12: Proven Acquirer & Attractive Organic Growth
Proven Acquirer & Attractive Organic Growth Source: Company Management and SNL Financial. Completed 6 acquisitions since the formation of the holding company in 1987 and have announced the acquisition of United Community Bancorp, projected to close in September 2018 Expanded commercial loan growth i
Slide 13: Deposit Mix and Cost of Deposits
Source: Company Management and SNL Financial. 2018 Peer data as of 6/30/2018, or the latest available date. Note: Comparable peers include public banks +/- 20% CIVB’s asset size in Ohio and contiguous states. Deposit Mix Total Deposits: $1.1 billion 2018 Total Cost of Deposits: 0.20% 34% Noninterest
Slide 14: Loan Mix and Loan Yield
Source: Company Management and SNL Financial. 2018 Peer data as of 6/30/2018, or the latest available date. Note: Comparable peers include public banks +/- 20% CIVB’s asset size in Ohio and contiguous states. Loan Mix Total Gross Loans: $1.2 billion Q2 2018 Loan Yield: 4.86% Yield on Loans (%)
Slide 15: Peer Leading FTE Net Interest Margin
Peer Leading FTE Net Interest Margin Source: SNL Financial. 2018 Peer data as of 6/30/2018, or the latest available date. Note: Comparable peers include public banks +/- 20% CIVB’s asset size in Ohio and contiguous states.
Slide 16: Effectively Managing Assets & Liabilities
Effectively Managing Assets & Liabilities Assets Asset duration of less than two years Sell fixed-rate mortgages Encourage variable-rate commercial lending or swap into variable, if appropriate Generally limit fixed-rate terms to five years Liabilities Liability duration greater than three years Foc
Slide 17: Strong Asset Quality
Source: Company Management and SNL Financial. 1 LTM basis 2 Excluding PCI (purchased credit impaired loans). Strong Asset Quality Reserves / NPLs NCOs 1 / Average Loans Loan Loss Reserves / Gross Loans NPAs & 90+PD / Assets Loan Loss Reserves / Gross Loans Nonaccrual & 90 days Past Due2 / Gross Loan
Slide 18: Fee Income / Operating Efficiencies
Fee Income / Operating Efficiencies Source: Company Management. Efficiency Ratio Noninterest Income / Average Assets Fee income platform YTD Service charges on deposit accounts were $2.5 million and $2.4 million for 2018 and 2017, respectively Mortgage Banking YTD Gain on sale of loans, primarily mo
Slide 19: Profitability & Returns Analysis
Profitability & Returns Analysis Source: Company Management and SNL Financial. 1 LTM 2 Pages 28 & 29 show 2018 ratios adjusted for merger related expense Diluted Earnings per Share ROAE 2 ROAA 2 Net Income Available to Common Shareholders
Slide 20: Capital Position
1 Illustrates CIVB’s capital position if all of the convertible preferred equity issued on 12/19/2013 (coupon: 6.5%, initial conversion price: $7.82) was converted into common equity. 2 TCE Non-GAAP reconciliation on page 30. Capital Position
Slide 21: Operating Results
Source: Company Management and SNL Financial. Operating Results
Slide 22: Compelling Investment Opportunity
Compelling Investment Opportunity Strong asset quality Proven acquirer Completed 6 acquisitions since the formation of the holding company in 1987 and have announced the acquisition of United Community Bancorp, projected to close in September 2018 Peer leading NIM Low cost deposits – 37 bps lower th
Slide 23: Overview of United Community Bancorp
Overview of United Community Bancorp ¹ Financial information as of December 31, 2017. ² Bank level regulatory deposit information; Core Deposits defined as total deposits less time deposits greater than $250k. ³ NPAs, excluding restructured assets / Assets as of December 31, 2017. Headquartered in L
Slide 24: Transaction Rationale
Transaction Rationale ¹ As measured on a fully diluted basis, which assumes the conversion of CIVB’s outstanding preferred stock into common shares. Refer to the Appendix for additional information and the associated calculation. Significant Opportunities for Continued Growth and Long-Term Value Cre
Slide 25: Pro Forma Footprint
$296 million in loans $462 million in deposits 81% of deposits within Cincinnati MSA #1 deposit market share in Dearborn County (IN) & #4 in Ripley County (IN) Footprint Source: S&P Global Market Intelligence, FDIC. Deposit market share information as of June 30, 2017. Loan and deposit balances as o
Slide 26: Pro Forma Deposit Composition
Pro Forma Deposit Composition Source: S&P Global Market Intelligence. As of December 31, 2017.
Slide 27: Pro Forma Loan Composition
Pro Forma Loan Composition Source: S&P Global Market Intelligence. Holding company regulatory loan information shown for Civista and bank level regulatory loan information shown for United as of December 31, 2017. ¹ Bank level total risk based capital ratios. Estimated PF bank level total risk based
Slide 28: Civista Non-GAAP Information
CIVISTA Non-GAAP Information BANCSHARES, INC. (Ss in thousands, except per share data) Merger Adjusted costs Q2 2018 Net Interest Income $14,766 $0 $14,766 $13,367 Provision for Loan Losses 0 ) Co) 0 Noninterest Income 4,390 ) 4,390 4,101 Noninterest Expense 15,928 (3,150) 12,778 12,549 Net Income/(
Slide 29: Civista Non-GAAP Information
CIVISTA Non-GAAP Information BANCSHARES, INC. (Ss in thousands, except per share data) Merger Adjusted costs YTD 2018_ | VID 2017 Net Interest Income $29,538 $0 $29,538 $26,261 Provision for Loan Losses 0 ) Co) 0 Noninterest Income 10,006 ) 10,006 9,237 Noninterest Expense 28,133, (3,150) 24,983, 24
Slide 30: Civista Non-GAAP Reconciliation
CIVISTA Non-GAAP Reconciliation BANCSHARES, INC. ($s in thousands, except per share data) As of and for the Years Ended December 31, 2014 2015 2016 Q2 2018 ‘Tangible Common Equity Total Equity $ 128,376 $ 115,909 $ 125,173 $ 137,616 $ 184,461|$ 189,848 Less: Preferred Equity 46,316 23,132 22,273 18,
Slide 31: Thank You
Thank You