Civista Bancshares, Inc. · NASDAQ:CIVB
Civista Bancshares — Q3 2019 Earnings Presentation
24 slides from Civista Bancshares's earnings presentation, Nov 14, 2019
Slide 1: Investor Presentation Third Quarter 2019
Investor Presentation Third Quarter 2019 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 presentation may contain forward-looking statements within the meaning of such term in federal securities law. Forward-looking statements express management’s current expectations, forecasts of future events or long-term goals, and may be based upon beliefs, expectat
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 depositary 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 Bank originally founded in 1884 10th Largest Publicly Traded Commercial Bank Headquartered in Ohio Community Banking Focused Operations in 12 Ohio, 2 Indiana and 1 Kentucky Counties 35 Branches & 2 Loan Production Offices Operations in the 5 largest Ohio MSAs Franchise Poised for
Slide 5: Experienced Management Team
Experienced Management Team Dennis G. Shaffer SVP & Chief Operating Officer 33 years of banking experience Joined in 2007 Richard J. Dutton SVP & Chief Lending Officer 31 years of banking experience Joined in 2016 Charles A. Parcher SVP & General Counsel 16 years of banking experience Joined in 2018
Slide 6: Branch Footprint
$326 million in loans $462 million in deposits 9 locations ~39% deposit share in our markets Branch Footprint Source: S&P Global Market Intelligence, FDIC. Deposit market share information as of June 30, 2019. Sandusky / Akron / Cleveland, Ohio $824 million in loans $699 million in deposits 12 locat
Slide 7: 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 (47 bps total cost of deposits) Generate loans in select growing urban markets (operations in the 5 largest MSA
Slide 8: Financial Highlights
Financial Highlights Source: Company Management and SNL Financial. Non-GAAP reconciliation on page 21. Reported on an annualized basis.
Slide 9: Increasing Shareholder Value
Increasing Shareholder Value Source: Company management and SNL Financial. 1 LTM basis 2 Non-GAAP reconciliation on page 21 3 Page 23 shows 2018 ratios adjusted for merger related expenses Tangible Book Value per Share2 Diluted EPS3
Slide 10: Proven Acquirer & Attractive Organic Growth
Proven Acquirer & Attractive Organic Growth Source: Company Management and SNL Financial. Completed 8 acquisitions since the formation of the holding company in 1987, including the acquisition of United Community Bancorp, which closed September 14, 2018 Expanded commercial loan growth in Columbus, C
Slide 11: Deposit Mix
Source: Company Management and SNL Financial. 2019 Peer data as of 9/30/2019, or the latest available date. Note: Comparable peers include public banks $1-$4B in Ohio and +/- 40% CIVB’s asset size in contiguous states. Deposit Mix Total Deposits: $1.6 billion 2019 Total Cost of Deposits: 0.47% 30% N
Slide 12: Loan Mix
Source: Company Management and SNL Financial. 2019 Peer data as of 9/30/2019, or the latest available date. Note: Comparable peers include public banks $1-$4B in Ohio and +/- 40% CIVB’s asset size in contiguous states. Loan Mix Total Gross Loans: $1.6 billion 2019 Loan Yield: 5.33% CRE to RBC ratio:
Slide 13: Peer Leading FTE Net Interest Margin
Peer Leading FTE Net Interest Margin Source: SNL Financial. 2019 Peer data as of 6/30/2019, or the latest available date. Note: Comparable peers include public banks $1-$4B in Ohio and +/- 40% CIVB’s asset size in contiguous states.
Slide 14: Effectively Managing Assets & Liabilities
Effectively Managing Assets & Liabilities Assets Encourage variable-rate commercial lending or swap into variable, if appropriate Generally limit fixed-rate terms to five years Sell fixed-rate mortgages Sold 64% of mortgage loans originated in 2019 Yield on loans increased 29 basis points YTD Asset
Slide 15: Fee Income / Operating Efficiencies
Fee Income / Operating Efficiencies Source: Company Management. 1 Page 22 shows 2018 ratios adjusted for merger related expenses Efficiency Ratio1 Noninterest Income / Average Assets Fee income platform Q3 YTD Service charges on deposit accounts were $4.7 million and $3.7 million for 2019 and 2018,
Slide 16: 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 17: Profitability & Returns Analysis
Profitability & Returns Analysis Source:Company Management and SNL Financial. LTM basis Page 23 shows 2018 ratios adjusted for merger related expenses Diluted Earnings per Share2 ROAE2 ROAA2 Net Income Available to Common Shareholders2
Slide 18: 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 21. Capital Position
Slide 19: Operating Results
Source: Company Management and SNL Financial. Operating Results
Slide 20: Compelling Investment Opportunity
Compelling Investment Opportunity Strong asset quality Proven acquirer Completed 8 acquisitions since the formation of the holding company in 1987, including the acquisition of United Community Bancorp, which closed on September 14, 2018 Peer leading NIM Low cost deposits – 52 bps lower than peer at
Slide 21: Non-GAAP Reconciliation
CIVISTA Non-GAAP Reconciliation BANCSHARES, INC. Tangible Common Equity and Tangible Assets (8s in thousands, except per share data) As of and for the Years Ended December 31, 2015 2016 2017 2018 Q3 2019 Tangible Common Equity Total Shareholder's Equity - GAAP $ 115,909 $ 125,173 $ 137,616 $ 184,461
Slide 22: Non-GAAP Information
CIVISTA Non-GAAP Information BANCSHARES, INC. (8s in thousands) YTD 2018 Adjusted Efficiency ratio Noninterest expense - GAAP $ Acquisition and integration expense Adjusted noninterest expense Net interest income - GAAP 66,107 Effect of tax-exempt income 4,062 Adjusted net interest income 67,169 Non
Slide 23: Non-GAAP Information
CIVISTA Non-GAAP Information BANCSHARES, INC. ($s in thousands, except per share data) ‘cu Marea ta 2018 Net Interest Income ‘$66,107 $0 $66,107 Provision for Loan Losses 780 oO 780 Noninterest Income 18,131 413 18,544 Noninterest Expense 66,679 (12,735) 53,944 Net Income/(Loss) 14,139 11,470 25,609
Slide 24: Thank You
Thank You