Civista Bancshares, Inc. · NASDAQ:CIVB
Civista Bancshares — Q1 2023 Earnings Presentation
42 slides from Civista Bancshares's earnings presentation, May 16, 2023
Slide 1: Investor Presentation First Quarter 2023
Investor Presentation First Quarter 2023 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 511 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 $437 million in loans $1,240 million in deposits #1 deposit market share in Sandusky, Ohio with ~53% Cleveland/Akron, Ohio 3 Locations $798 million in loans $160 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 (49 bps Q1 total cost of deposits) Generate loans organically in select growing markets (operations in the 5 largest MSAs in Ohio) Strong capital position Disciplined underwr
Slide 8: Who We Are: Management Team
CIVISTA BANCSHARES, INC. Dennis G. Shaffer Paul J. Stark Who We Are Richard J. Dutton Charles A. Parcher / Senior Vice President Senior Vice President Chief Operating Officer Chief Lending Officer Robert L. Curry, Jr. / Todd A. Michel Lance A. Morrison Chief Credit Officer Russell L. Edwards Senior
Slide 9: Awards and Recognition
CIVISTA BANCSHARES, INC. ‘GRAINS CLEVELAND BUSINESS BankDirector RANKING BANKING THE BESTS. BANKS,
Slide 10: Current Events
DK civisTA Current Events
Slide 11: Deposits
Deposits 14%* or $397.4 million of deposits uninsured at March 31, 2023 Cash and unpledged securities of $434.8 million at March 31, 2023 Deposits, excluding tax program and brokered deposits, declined 2.1% from December 31, 2022 to March 31, 2023 $20 million of decline moved to Civista Wealth Manag
Slide 12: Liquidity
Liquidity Strong on-balance sheet liquidity $434.8 million of cash and unpledged securities at March 31, 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 Federal R
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 346.8% at March 31, 2023 ACL to loans was 1.33% at March 31, 2023
Slide 14: Capital
Capital Civista continues to create capital through earnings “Well Capitalized” by regulatory standards Tangible Common Equity ratio was 6.14% at March 31, 2023
Slide 15: Financial Trends
DK civisTA Financial Trends
Slide 16: Financial Trends
Financial Trends March 31, 2023 includes $464 thousand of PPP loans; March 31, 2022 includes $15.5 million of PPP loans Presented on an annualized basis 3. Non-GAAP reconciliation on page 37
Slide 17: Financial Trends: Total Assets
Financial Trends Total Assets1 ($ in millions) 1. 2018 includes the addition of $578 million in assets due to United Community Bancorp acquisition. 2022 includes the addition of $316 million in assets due to Comunibanc Corp acquisition. CAGR 12.9%
Slide 18: Financial Trends: Total Gross Loans
Financial Trends Total Gross Loans1 ($ in millions) 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 PPP loans. 2022 includes $819 thousand of PPP loans as well as $169 millio
Slide 19: Financial Trends: Loan Mix
Financial Trends Total Gross Loans: $2.6 billion Loan Mix ($ in millions)
Slide 20: Financial Trends: VFG Lease and Equipment Financing
Financial Trends VFG Lease and Equipment Financing ($ in millions) 2023 YTD Production Q1 Funded: $27.5 million Sold: $11.2 million Net Production: $16.3 million Average Yield on Total Portfolio: 7.68% Average Yield on Q1 Originations: 8.75%
Slide 21: Financial Trends: Reserves and Credit Quality
1. LTM basis Financial Trends Reserves / NPLs NCOs / Average Loans 1 Loan Loss Reserves / Gross Loans NPAs & 90+PD / Assets Loan Loss Reserves / Gross Loans Nonaccrual & 90 days Past Due / Gross Loans
Slide 22: Financial Trends: Total Deposits
Financial Trends Total Deposits1 ($ 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 Comunibanc Corp acquisition. CAGR 14.8%
Slide 23: Financial Trends: Deposit Mix
Financial Trends Total Deposits: $2.8 billion Loan/Deposit Ratio: 90.7% Deposit Mix
Slide 24: Financial Trends: Cost of Deposits and Loan Yield vs Peers
2023 Peer data as of 3/31/2023 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 vs Peers
Financial Trends 2023 peer data as of 3/31/2023, 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: Fee Income and Efficiency
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. Q1 2023 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. 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 was $59.3 million Providing Shareholder Value Total Shareholders’ Equity & Return on Tangible Equity1,2,3 ($
Slide 31: Tangible Book Value per Share
Providing Shareholder Value 1. Non-GAAP reconciliation on page 37 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 and to 3/31/23 was $3.76 Tangible Book Value per Share1,2
Slide 32: Why Civista?
Why Civista? 32
Slide 33: Why Civista? Experienced Acquirer & Organic Growth
Why Civista? Completed 6 acquisitions since 2007, including the acquisition of Comunibanc Corp, which closed July 1, 2022 and acquisition of Vision Financial Group, which closed October 3, 2022 On June 27, 2022, opened de novo branch in Gahanna, Ohio, located in Franklin County (Columbus MSA) Experi
Slide 34: Why Civista?
Why Civista? Community bank franchise poised for acquisitions and strong core deposit franchise Strong capital position Strong credit culture and asset quality Experienced acquirer Continued strong NIM Experienced management team with an average of 30 years in banking Strategically positioned in att
Slide 35: Additional Information
> CIVISTA BANCSHARES, INC. Additional Information
Slide 36: Operating Results
CIVISTA Operating Results BANCSHARES, INC. ($s in thousands, except per share data) Net Interest Income $66,107 $85,100 $89,727 $95,425 $110,204 | $119,873 Provision for Loan Losses 780 1,035 10,112 830 4,752 2,072 Noninterest Income 18,131 22,443 28,182 31,452 29,077 32,502 Noninterest Expense 66,6
Slide 37: Non-GAAP Reconciliation
Non-GAAP Reconciliation 1. LTM basis
Slide 38: Non-GAAP Reconciliation
> CIVISTA Non-GAAP Reconciliation BANCSHARES, INC. ($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) 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
Slide 41: Non-GAAP Reconciliation
CIVISTA Non-GAAP Reconciliation BANCSHARES, INC. ($s in thousands, except per share data) Agua More amt aut GAAP Net interest Income $66,107 $0 $66,107 Provision for Loan Losses 780 ° 780 Noninterest Income 18,131 413 18,544 Noninterest Expense 66,679 (12,735) 53,944 Net income/(Loss) 14,139 11,470
Slide 42: Thank You
Thank You