Civista Bancshares, Inc. · NASDAQ:CIVB
Civista Bancshares — Q3 2022 Earnings Presentation
42 slides from Civista Bancshares's earnings presentation, Nov 3, 2022
Slide 1: Investor Presentation Third Quarter 2022
Investor Presentation Third Quarter 2022 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@civb.com 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 458 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, 2022. Sandusky/Norwalk/Port Clinton, Ohio 9 Locations $431 million in loans $953 million in deposits #1 deposit market share in Sandusky, Ohio with ~53% Cleveland/Akron, Ohio 3 Locations $695 million in loans $174 million in deposits North C
Slide 7: Who We Are: Community Bank Franchise
Who We Are Community bank franchise in growth markets with an established operating model Gather attractive low-cost deposits (12 bps total cost of deposits) Generate loans organically in select growing markets (operations in the 5 largest MSAs in Ohio) Strong capital position Disciplined underwriti
Slide 8: Senior Management Team
Who We Are Dennis G. Shaffer SVP & Chief Operating Officer 36 years of banking experience Joined in 2007 Richard J. Dutton SVP & Chief Lending Officer 34 years of banking experience Joined in 2016 Charles A. Parcher CEO & President President, Civista Bank 37 years of banking experience Joined in 200
Slide 9: Civista Bancshares, Inc.
CIVISTA BANCSHARES, INC.
Slide 10: Current Initiatives
DK civisTA Current Initiatives
Slide 11: Overview of The Henry County Bank
Source: S&P Global Market Intelligence. Pro Forma Branch Footprint Company Highlights Valuable Core Deposit Franchise 2021 Q3 Financial Highlights ($ millions) 28, 22, 102 60, 77, 158 240, 137, 33 250, 175, 64 Overview of The Henry County Bank Headquartered in Napoleon, OH, approximately 35 miles so
Slide 12: Market Expansion in the Attractive Northwest Ohio Region
Source: S&P Global Market Intelligence; census.gov; fred.stlouisfed.org; toledo.oh.gov; toledoregion.com; rgp.org. Market Overview 3-Year MSA Deposit Growth CAGRs Major Employers Toledo, Ohio Northwest Ohio 28, 22, 102 60, 77, 158 240, 137, 33 250, 175, 64 Market Expansion in the Attractive Northwes
Slide 13: Vision Financial Group, Inc. Overview
Key Principles Integrity – Always doing what you say you will do Responsiveness – Out-respond the competition Competitiveness – Always be competitive Company Highlights Originations and Portfolio Balance1 Vision Financial Group, Inc. Overview Originations CAGR: 7.5% Name: Vision Financial Group, Inc
Slide 14: Strong Strategic Fit
Strong Strategic Fit Adds a highly-regarded full-service equipment finance provider with over 30+ years of providing reliable, creative financing solutions for its business customers Addresses Civista’s strategic goal of building diversified revenue streams, further enhancing shareholder value Signi
Slide 15: Transaction Consideration
Transaction Consideration $33,850,000 in aggregate initial consideration $28,600,000 in cash consideration and $5,250,000 in stock consideration Approximately 251,000 shares of Civista common stock issued at closing1 Additional earn-out consideration of up to $5,250,000 may be payable based on Visio
Slide 16: Financial Trends
DK civisTA Financial Trends
Slide 17: Financial Trends
Financial Trends September 30, 2022 includes $819 thousand of PPP loans; September 30, 2021 includes $83.0 million of PPP loans Presented on an annualized basis 3. Non-GAAP reconciliation on page 37
Slide 18: Financial Trends: Total Assets
Financial Trends Total Assets1 ($ in millions) 1. 2018 includes the addition of $578 million in assets due to United Community Bancorp acquisition 2. 2022 includes the addition of $316 million in assets due to Henry County Bank acquisition. CAGR 17.2%
Slide 19: Financial Trends: Total Gross Loans
Financial Trends Total Gross Loans1 ($ in millions) 1. 2022 includes $819 thousand of PPP loans as well as $169 million due to the Henry County Bank acquisition. 2021 includes $43.2 million of PPP loans. 2020 includes $217.3 million of PPP loans. 2018 includes the addition of $299 million in loans d
Slide 20: Financial Trends: Loan Mix
Financial Trends Total Gross Loans: $2.3 billion Loan Mix ($ in millions)
Slide 21: Financial Trends: Credit Quality and Reserves
1. LTM basis 2. Excluding PCI (purchased credit impaired) loans. Financial Trends Reserves / NPLs NCOs / Average Loans 1 Loan Loss Reserves / Gross Loans NPAs & 90+PD / Assets Loan Loss Reserves / Gross Loans Nonaccrual & 90 days Past Due2 / Gross Loans
Slide 22: Financial Trends: Total Deposits
Financial Trends Total Deposits1 ($ in millions) 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 due to the Henry County Bank acquisition. CAGR 18.6%
Slide 23: Financial Trends: Deposit Mix
1. Ratio excludes $819 thousand of PPP loans and $103.9 million of tax refund processing deposits Financial Trends Total Deposits: $2.7 billion Loan/Deposit Ratio: 89.3%1 Deposit Mix
Slide 24: Financial Trends: Cost of Deposits and Loan Yield vs Peers
2022 Peer data as of 9/30/2022 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 25: Financial Trends: Net Interest Margin
Financial Trends 2022 peer data as of 9/30/2022, 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 26: Financial Trends: Non-Interest Income and Expense
Financial Trends 1. 2018 efficiency ratio is adjusted for merger related expenses; 2021 efficiency ratio is adjusted for nonrecurring items; 2022 efficiency ratio is adjusted for merger related expenses. Page 38,39 and 40 show Non-GAAP reconciliations Fee income platform Service charges on deposit a
Slide 27: Financial Trends: Capital Management
Financial Trends 1. TCE Non-GAAP reconciliation on page 37 2. LTM basis 3. Page 41 shows 2018 ratios adjusted for merger related expenses 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
Slide 28: Providing Shareholder Value
Providing Shareholder Value 28
Slide 29: Net Income & Earnings Per Share
1. Q3 2022 presented on LTM basis 2. Page 41 shows 2018 ratios adjusted for merger related expenses Providing Shareholder Value Net Income & Earnings Per Share (Available to Common) (LTM - $ in thousands)
Slide 30: Total Shareholders' Equity & Return on Tangible Equity
1. LTM basis 2. Non-GAAP reconciliation on page 37 3. 2022 Q3 includes tax effected net change of $79MM in unrealized loss from 12/31/21 to 9/30/22. The change in unrealized loss is 13.1% of securities AFS at 9/30/22 Providing Shareholder Value Total Shareholders’ Equity & Return on Tangible Equity1
Slide 31: Tangible Book Value per Share
Providing Shareholder Value Non-GAAP reconciliation on page 37 2. 2022 Q3 includes tax effected net change of $79MM in unrealized loss from 12/31/21 to 9/30/22. The change in unrealized loss is 13.1% of securities AFS at 9/30/22 Tangible Book Value per Share1,2
Slide 32: Why Civista?
Why Civista? 32
Slide 33: Why Civista? Experienced Acquirer & Organic Growth Model
Why Civista? Completed 6 acquisitions since 2007, including the acquisition of Comunibanc Corp, which closed July 1, 2022 and acquisition of Vision Financial Group, which closed October 3, 2022 On June 27, 2022, opened de novo branch in Gahanna, Ohio, located in Franklin County (Columbus MSA) Experi
Slide 34: Why Civista? Compelling Investment Opportunity
Why Civista? Community bank franchise poised for acquisitions and strong core deposit franchise Strong capital position Strong credit culture and asset quality Experienced acquirer Continued strong NIM Experienced management team with an average of 30 years in banking Strategically positioned in att
Slide 35: Additional Information
> CIVISTA BANCSHARES, INC. Additional Information
Slide 36: Operating Results
CIVISTA Operating Results BANCSHARES, INC. ($s in thousands, except per share data) Net Interest Income $54,502 $66,107 $85,100 $89,727 $95,425 | $100,962 Provision for Loan Losses 0 780 1,035 10,112 830 1,000 Noninterest Income 16,334 18,131 22,443 28,182 31,452 25,823 Noninterest Expense 48,604 66
Slide 37: Non-GAAP Reconciliation
Non-GAAP Reconciliation 1. LTM basis
Slide 38: Non-GAAP Reconciliation
> CIVISTA Non-GAAP Reconciliation BANCSHARES, INC. ($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 ne
Slide 39: Non-GAAP Reconciliation
» €s CIVISTA Non-GAAP Reconciliation BANCSHARES, INC. ($s in thousands) 2021 Adjusted Efficiency ratio Noninterest expense - $ 78,484 FHLB prepayment ee (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
Slide 40: Non-GAAP Reconciliation
BANCSHARES, INC. » €s VISTA Non-GAAP Reconciliation ($s in thousands) Q3 2022 Adjusted Efficiency ratio Noninterest expense - GAAP $ 22,555 Acquisition and integration expense (635), Adjusted noninterest expense 21,920 Net interest income - GAAP. 30,439 Effect of tax-exempt income 532 Adjusted net i
Slide 41: Non-GAAP Reconciliation
CIVISTA Non-GAAP Reconciliation BANCSHARES, INC. (Ss in thousands, except per share data) ‘ge Mane an GAAP Net Interest Income $66,107 $0 $66,107 Provision for Loan Losses. 780 o 780 Noninterest Income 18,131 413, 18,544 Noninterest Expense 66,679 (12,735) 53,944 Net Income/(Loss) 14,139 11,470 25,6
Slide 42: Thank You
Thank You