Financial Data and Key Metrics Changes - The company reported net income for Q4 2025 of $12.3 million, or $0.61 per diluted share, a 24% increase from Q4 2024 [3] - For the full year, net income was $46.2 million, or $2.64 per diluted share, compared to $31.7 million, or $2.01 per diluted share for 2024 [4] - The return on assets (ROA) for Q4 was 1.14%, improving to 1.42% when excluding one-time expenses [5] Business Line Data and Key Metrics Changes - Net interest income for Q4 totaled $36.5 million, a 5.5% increase from the linked quarter and a 16% increase from Q4 2024 [6] - The loan and lease portfolio grew by $68.7 million, representing an annualized growth rate of 8.7% during Q4, excluding newly acquired loans [7] - Non-interest income increased by $251,000, or 2.6%, from the linked quarter and by $869,000, or 9.6%, from Q4 2024 [8] Market Data and Key Metrics Changes - The company added $236 million in low-cost deposits from the acquisition of Farmers Savings Bank [14] - The loan-to-deposit ratio was 94.3%, slightly down from the linked quarter, with expectations to maintain it within the targeted range of 90%-95% [16] - The security portfolio totaled $685 million, representing 15.8% of the balance sheet, with unrealized losses declining to $45 million [17] Company Strategy and Development Direction - The company aims to focus on increasing tangible common equity and reducing reliance on wholesale funding, with a goal of mid-single-digit loan growth in 2026 [7][14] - Investments in technology and digital banking solutions are expected to enhance deposit growth and support loan growth [28][40] - The company plans to continue evaluating share repurchase opportunities as part of its capital management strategy [67] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate strong earnings despite mixed economic conditions across the country [18] - Credit quality remains solid, with low delinquencies and a slight decrease in net charge-offs compared to the previous year [19] - The company anticipates a stable economic environment in Ohio and Southeastern Indiana, with no systemic signs of deterioration [18] Other Important Information - The company announced an increase in its quarterly dividend to $0.18 per share, reflecting confidence in its financial performance [8][18] - The efficiency ratio improved to 57.7% for the quarter, compared to 61.4% for the linked quarter [11] Q&A Session Summary Question: Loan growth outlook and composition - Management expects commercial loans to lead growth in 2026, with a focus on C&I and commercial real estate [26][27] Question: Digital channel growth potential - Management anticipates accelerated growth through digital channels but remains cautious about margin impacts [30][32] Question: Margin trends and rate cuts - The company expects a slight margin expansion in Q1 and further increases if rate cuts occur [36][37] Question: Expense run rate post-acquisition - First quarter expenses are expected to be in the range of $29 million, with some reductions anticipated after the Farmers conversion [39] Question: Credit quality and non-performing loans - An increase in non-performing loans was attributed to one isolated credit situation, with overall credit quality remaining stable [46][48] Question: Leasing revenue outlook - Leasing revenue is expected to be lumpy, with guidance for total non-interest income in Q1 around $7.8 million to $8.2 million [70]

Financial Data and Key Metrics Changes - The company reported net income for Q4 2025 of $12.3 million, or $0.61 per diluted share, a 24% increase from Q4 2024 [3] - For the full year, net income was $46.2 million, or $2.64 per diluted share, compared to $31.7 million, or $2.01 per diluted share for 2024, despite an increase in shares outstanding due to capital offerings and acquisitions [4] - The return on assets (ROA) for Q4 was 1.14%, improving to 1.42% when excluding one-time expenses, with a full-year ROA of 1.11% [5] Business Line Data and Key Metrics Changes - Net interest income for Q4 totaled $36.5 million, a 5.5% increase from the linked quarter and a 16% increase from Q4 2024 [6] - Non-interest income increased by $251,000, or 2.6%, from the linked quarter and by $869,000, or 9.6%, from Q4 2024 [8] - Non-interest expense for Q4, after adjusting for non-recurring expenses, was $27.6 million, consistent with the linked quarter [10] Market Data and Key Metrics Changes - The company added $106 million in loans and $236 million in low-cost deposits from the acquisition of Farmers Savings Bank [5] - The loan and lease portfolio grew by $68.7 million, representing an annualized growth rate of 8.7% during Q4 [7] - The loan-to-deposit ratio was 94.3%, slightly down from the linked quarter, with a target range of 90%-95% [16] Company Strategy and Development Direction - The company aims for mid-single-digit loan growth in 2026, focusing on commercial and industrial (C&I) growth while leveraging Farmers' excess deposits [7][12] - Investments in technology and digital banking solutions are expected to enhance deposit growth and support loan growth [27][40] - The company is committed to maintaining a strong capital position to support organic growth and investments in infrastructure [18] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in the company's ability to generate strong earnings despite mixed economic conditions across the country [18] - Credit quality remains solid, with low delinquencies and stable credit metrics, although there was a slight increase in non-performing loans [19] - The management anticipates a gradual expansion of the net interest margin, projecting a 2-3 basis point increase in Q1 and further growth in subsequent quarters [35] Other Important Information - The company announced an increase in its quarterly dividend to $0.18 per share, reflecting confidence in its financial performance [8][17] - The tangible common equity ratio increased from 6.43% a year ago to 9.54% at year-end 2025, indicating strong capital generation [20] Q&A Session Summary Question: Loan growth outlook and composition - Management expects commercial loans to lead growth in 2026, with a focus on C&I and potential leasing growth [25][26] Question: Digital channel growth potential - The digital channel is in early stages, with initial success in opening new accounts, but significant growth is anticipated as more products are launched [31][32] Question: Margin trends and interest rate assumptions - Management expects a slight margin expansion in Q1, with potential further increases depending on interest rate movements [35][36] Question: Expense run rate post-acquisition - First quarter expenses are expected to be similar to current levels, with some reductions anticipated after the Farmers conversion [39] Question: Credit quality and non-performing loans - The increase in non-performing loans was attributed to one isolated credit situation, with overall credit quality remaining stable [46][47]

Financial Data and Key Metrics Changes - The company reported net income for Q4 2025 of $12.3 million, or $0.61 per diluted share, a 24% increase from Q4 2024 [3] - For the full year, net income was $46.2 million, or $2.64 per diluted share, compared to $31.7 million, or $2.01 per diluted share for 2024 [4] - The return on assets (ROA) for Q4 was 1.14%, improving to 1.42% when excluding one-time expenses [5] - The efficiency ratio improved to 57.7% for the quarter, compared to 61.4% for the linked quarter and 68.3% for the prior year [10] Business Line Data and Key Metrics Changes - Net interest income for Q4 totaled $36.5 million, a 5.5% increase over the linked quarter and a 16% increase over Q4 2024 [5] - Non-interest income increased by $251,000, or 2.6%, from the linked quarter, but decreased by $3.8 million, or 10%, for the year compared to 2024 [8][9] - The loan and lease portfolio grew by $68.7 million, representing an annualized growth rate of 8.7% during Q4 [6] Market Data and Key Metrics Changes - The company added $106 million in loans and $236 million in low-cost deposits from the acquisition of Farmers Savings Bank [5] - The loan-to-deposit ratio was 94.3%, slightly down from the linked quarter, with a target range of 90%-95% [15] - The security portfolio totaled $685 million, representing 15.8% of the balance sheet, with 100% classified as available for sale [16] Company Strategy and Development Direction - The company aims to maintain a strong capital position to support organic growth and invest in technology and infrastructure [17] - There is a focus on reducing reliance on wholesale funding, with a successful reduction in brokered deposits for four consecutive quarters [7] - The company plans to leverage the excess deposits from Farmers Savings Bank to support future loan growth [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the economic conditions across Ohio and Southeastern Indiana, noting no systemic signs of deterioration [17] - The company anticipates mid-single-digit loan growth in 2026, with a focus on commercial and industrial lending [6][22] - Credit quality remains solid, with low delinquencies and a stable allowance for credit losses [18] Other Important Information - The company announced an increase in its quarterly dividend to $0.18 per share, representing a 3.2% annualized yield [7] - The tangible common equity ratio increased from 9.21% at September 30 to 9.54% at year-end [17] - The company is investing in technology and personnel to enhance its operations and growth potential [28] Q&A Session Summary Question: Loan growth outlook and composition - Management expects commercial lending to lead growth in 2026, with a focus on C&I and commercial real estate [22][23] Question: Margin trends and interest rate assumptions - The company anticipates a slight margin expansion in Q1 and further increases in subsequent quarters, assuming rate cuts [26][27] Question: Credit quality and non-performing loans - The increase in non-performing loans was attributed to one specific credit issue, with overall credit quality remaining stable [30][31] Question: Capital optimization and share repurchase plans - The company has a $13.5 million share repurchase authorization and will consider repurchases if they see value [39] Question: Leasing revenue expectations - Leasing revenue is expected to be lumpy, with a potential drop in the first quarter but an increase in subsequent quarters [40]

Core Insights - Civista Bancshares reported revenue of $46.34 million for the quarter ended December 2025, reflecting a year-over-year increase of 14.8% and a surprise of +2.06% over the Zacks Consensus Estimate of $45.4 million [1] - The earnings per share (EPS) for the quarter was $0.75, up from $0.63 in the same quarter last year, resulting in an EPS surprise of +22.29% compared to the consensus estimate of $0.61 [1] Financial Performance Metrics - The efficiency ratio (non-GAAP) was reported at 57.7%, better than the average estimate of 63.3% based on two analysts [4] - The net interest margin (tax equivalent) stood at 3.7%, slightly above the average estimate of 3.6% from two analysts [4] - Total interest-earning assets averaged $3.94 billion, close to the $3.95 billion average estimate from two analysts [4] - Net interest income was reported at $36.45 million, exceeding the average estimate of $35.8 million from two analysts [4] - The net gain on the sale of loans was $1.59 million, surpassing the estimated $1.3 million by two analysts [4] - Total noninterest income reached $9.88 million, higher than the average estimate of $9.18 million from two analysts [4] Stock Performance - Civista Bancshares shares have returned +4.8% over the past month, outperforming the Zacks S&P 500 composite, which changed by +0.8% [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Performance - Net income for Q4 2025 was $12.3 million, a 24% increase from $9.9 million in Q4 2024, and full-year net income reached $46.2 million, a 46% increase from $31.7 million in 2024[2]. - Diluted earnings per common share for Q4 2025 was $0.61, compared to $0.63 in Q4 2024, and for the full year, it was $2.64, a 31% increase from $2.01 in 2024[2]. - Net income for the twelve months ended December 31, 2025, was $46,212,000, up 46.0% from $31,683,000 in 2024[55]. - Net income for Q4 2025 was $12,267 million, compared to $9,893 million in Q4 2024, representing a 24.5% increase year-over-year[68]. Asset and Deposit Growth - Total assets as of December 31, 2025, were $4.3 billion, a 5.4% increase from September 30, 2025, and a 5.8% increase from December 31, 2024[10]. - Total deposits at December 31, 2025, were $3.5 billion, a 7.3% increase from September 30, 2025, and a 7.9% increase from December 31, 2024[11]. - Total loans increased by 6.1% to $3,270,046 from $3,081,230, with notable growth in residential real estate loans by 22.1%[49]. - Total deposits grew by 7.9% to $3,466,464, with time deposits surging by 54.8%[50]. Efficiency and Operational Metrics - Efficiency ratio improved to 57.7% in Q4 2025, down from 68.3% in Q4 2024, marking the sixth consecutive quarter of improvement[2]. - The efficiency ratio improved to 57.7% for Q4 2025 from 68.3% in the same period last year, driven by a 16.3% increase in net interest income[23]. - The average yield on interest-earning assets improved to 5.71% from 5.62% year-over-year[41]. - The return on average assets for Q4 2025 was 1.14%, an increase from 0.97% in Q4 2024[69]. Non-Interest Income and Expenses - Non-interest income for Q4 2025 totaled $9.9 million, a 9.6% increase compared to the same period last year[18]. - Non-interest income for Q4 2025 was impacted by the mid-quarter FSB acquisition, with service charges increasing by $0.1 million year-over-year due to higher retail overdraft fees[8]. - Non-interest expense for Q4 2025 totaled $31.0 million, an increase of $2.7 million or 9.6% compared to the same period last year, primarily due to $3.4 million in non-recurring acquisition-related expenses[21]. - Total non-interest expense for Q4 2025 was $31,003 million, up from $28,296 million in Q4 2024, indicating an increase of 6.0%[73]. Credit Quality and Allowance for Losses - The allowance for credit losses to loans ratio was 1.28% at December 31, 2025, compared to 1.30% at September 30, 2025[17]. - The allowance for credit losses at the end of the period was $42,020,000, an increase from $39,669,000 in 2024[56]. - The provision for credit losses for the twelve months ended December 31, 2025, was $3,521,000, down from $5,885,000 in 2024, showing a reduction in expected credit losses[55]. - Non-performing assets decreased to $31,290,000 as of December 31, 2025, from $32,852,000 in 2024, indicating improved asset quality[53]. Capital and Shareholder Metrics - Total shareholders' equity increased to $543.5 million as of December 31, 2025, up $44.4 million from September 30, 2025, and $155.0 million from December 31, 2024, due to a capital raise and the FSB acquisition[26]. - The book value per share rose to $26.20 as of December 31, 2025, compared to $25.08 in 2024[57]. - The equity to asset ratio improved to 12.53% as of December 31, 2025, from 9.48% in 2024, indicating stronger capital position[57]. - The Tier 1 leverage ratio improved to 11.32% from 10.96% in the previous quarter, indicating stronger capital adequacy[77]. Future Outlook - The company expects continued growth in net interest income and non-interest income in the upcoming quarters, driven by strategic market expansions and product innovations[86].

Core Viewpoint Civista Bancshares, Inc. reported strong financial results for the fourth quarter and full year of 2025, highlighting significant growth in net income and earnings per share, driven by disciplined growth strategies and the successful acquisition of The Farmers Savings Bank. Financial Performance - Net income for Q4 2025 was $12.3 million, a 24% increase from $9.9 million in Q4 2024, and $46.2 million for the full year, up 46% from $31.7 million in 2024 [1][5][6] - Earnings per share for Q4 2025 were $0.61, compared to $0.63 in Q4 2024, and $2.64 for the full year, up 31% from $2.01 in 2024 [1][5][6] - The efficiency ratio improved to 57.7% in Q4 2025 from 68.3% in Q4 2024, marking the sixth consecutive quarter of improvement [5][20] Acquisition Impact - The acquisition of The Farmers Savings Bank added approximately $268.1 million in assets, $106.2 million in loans and leases, and $236.1 million in deposits [5][7] - Integration of FSB is on track, with core conversion scheduled for February 2026 [5][8] Asset and Deposit Growth - Total assets reached $4.3 billion, a 5.4% increase from Q3 2025 and a 5.8% increase from Q4 2024 [9] - Total deposits were $3.5 billion, up 7.3% from Q3 2025 and 7.9% from Q4 2024 [10] Net Interest Income and Margin - Net interest income for Q4 2025 was $36.5 million, a 16.3% increase from Q4 2024 [12][14] - Net interest margin improved to 3.69% in Q4 2025 from 3.36% in Q4 2024 [12][19] Non-Interest Income and Expenses - Non-interest income for Q4 2025 totaled $9.9 million, a 9.6% increase from the previous year [17] - Non-interest expenses for Q4 2025 were $31.0 million, a 9.6% increase, influenced by $3.4 million in non-recurring acquisition-related expenses [20][21] Credit Quality - Provision for credit losses decreased to $0.6 million in Q4 2025 from $0.7 million in Q4 2024 [16] - Non-performing assets increased to $31.3 million, a 37.3% rise from Q3 2025 [19] Capital Position - Total shareholders' equity increased to $543.5 million, up $44.4 million from Q3 2025 and $155.0 million from Q4 2024 [23] - The company raised $80.5 million through a public offering in July 2025 [24]

Core Viewpoint - Civista Bancshares, Inc. has declared a quarterly dividend of 18 cents per common share, marking a 1-cent increase from the previous quarter, with a payout date set for February 24, 2026 [1]. Group 1: Dividend Announcement - The approved quarterly dividend amounts to approximately $3.7 million [2]. - Based on Civista's closing stock price of $22.22 on December 31, 2025, the annualized yield from the quarterly dividend is 3.24% [2]. Group 2: Company Overview - Civista Bancshares, Inc. is a financial holding company with assets totaling $4.3 billion, headquartered in Sandusky, Ohio [3]. - The primary subsidiary, Civista Bank, offers full-service banking, commercial lending, mortgage, and wealth management services, operating 44 locations across Ohio, Southeastern Indiana, and Northern Kentucky [3]. - Civista Leasing & Finance, a division of Civista Bank, provides commercial equipment leasing services nationwide [3]. - The company's common shares are traded on the NASDAQ Capital Market under the symbol "CIVB" [3].

Core Viewpoint - Civista Bancshares, Inc. is set to release its fourth quarter 2025 financial results on January 29, 2026, prior to market opening, and will host a conference call to discuss these results [1][2]. Group 1: Financial Results Announcement - The financial results for the fourth quarter of 2025 will be announced before the market opens on January 29, 2026 [1]. - A conference call and webcast will take place at 1:00 p.m. Eastern Time on the same day to discuss the financial results, with analysts invited to participate in a Q&A session [1][2]. Group 2: Company Overview - Civista Bancshares, Inc. is a financial holding company with assets totaling $4.4 billion, headquartered in Sandusky, Ohio [3]. - The primary subsidiary, Civista Bank, was established in 1884 and offers a range of services including full-service banking, commercial lending, mortgage, and wealth management [3]. - Civista Bank operates 44 locations across Ohio, Southeastern Indiana, and Northern Kentucky, and provides commercial equipment leasing services nationwide through its Civista Leasing and Finance Division [3].

Core Points - Civista Bancshares, Inc. has successfully completed its merger with The Farmers Savings Bank, marking a strategic expansion into Medina and Lorain Counties in Ohio [1][2][3] - The merger adds approximately $236 million in low-cost deposits and two new branches to Civista's portfolio, resulting in a combined total of approximately $4.4 billion in assets, $3.2 billion in net loans, and $3.5 billion in total deposits [2][3] Company Overview - Civista Bancshares, Inc. is a $4.4 billion financial holding company headquartered in Sandusky, Ohio, with its primary subsidiary, Civista Bank, providing full-service banking, commercial lending, mortgage, and wealth management services [4] - Civista Bank operates 44 locations across Ohio, Southeastern Indiana, and Northern Kentucky, and offers commercial equipment leasing services nationwide [4] Leadership Statements - Dennis G. Shaffer, President and CEO of Civista Bancshares, emphasized the merger as a significant step in delivering exceptional community banking services and enhancing commercial lending capabilities [3] - Tom Lee, President and CEO of The Farmers Savings Bank, noted that joining Civista allows for continued community-focused banking while gaining access to expanded resources and expertise [3]

Financial Position - Total assets increased by $14,865, or 0.4%, to $4,113,334 as of September 30, 2025, compared to $4,098,469 at December 31, 2024[156] - Total liabilities decreased by $95,661, or 2.6%, to $3,614,306 as of September 30, 2025, primarily due to a reduction in short-term FHLB advances[156] - Total deposits increased by $18,593 to $3,230,463 as of September 30, 2025, with time deposits rising by 28.0%[167] - Shareholders' equity increased to $499,028, or 12.1% of total assets, from $388,502, or 9.5% of total assets, at December 31, 2024[170] - The Company's total risk-based capital ratio was 17.8% as of September 30, 2025, up from 13.9% at December 31, 2024, exceeding regulatory minimum guidelines[203] Loan and Credit Performance - Net loans increased by $14,179, or 0.5%, to $3,055,740 as of September 30, 2025, with significant growth in Residential Real Estate loans[158] - The loan to deposit ratio was 95.8% as of September 30, 2025, compared to 95.9% at December 31, 2024[158] - Provisions for credit losses totaled $2,792 for the first nine months of 2025, down from $4,668 in the same period of 2024[159] - Net charge-offs for the first nine months ended September 30, 2025 totaled $2,212, an increase from $1,080 for the same period in 2024, with a total of 45 loans and leases charged off[161] - The allowance for credit losses as a percentage of total loans was 1.30% at September 30, 2025, compared to 1.29% at December 31, 2024[163] Income and Expenses - Net income for the three months ended September 30, 2025 was $12,760, an increase of $4,394 from $8,366 for the same period in 2024[172] - Net interest income for the three months ended September 30, 2025 was $34,545, up $5,312 from $29,233 in the same period of 2024[173] - Total interest and dividend income increased to $55,240 for the three months ended September 30, 2025, a rise of $2,499 from $52,741 in 2024[174] - Total interest expense decreased by 12.0% to $20,695 for the three months ended September 30, 2025, compared to $23,508 for the same period in 2024[176] - Total noninterest expense for the three months ended September 30, 2025, was $28,327, a slight decrease of $68 or 0.2% from $28,395 in 2024[184] Market and Strategic Activities - The company entered into a merger agreement with The Farmers Savings Bank, which has total assets of $293 million and total deposits of $236 million[151] - The merger agreement includes a cash payment of $34.925 million and the issuance of 1,434,491 common shares, with an aggregate deal value of approximately $66.7 million[152] - An underwritten public offering raised approximately $75.7 million in net proceeds, which will support organic growth opportunities and future strategic transactions[155] - The company has received all required regulatory approvals for the merger, expected to close in November 2025, pending shareholder approval[153] Risk Management - The primary market risk exposure for the Company is interest-rate risk, which is managed through asset/liability management techniques[208] - The Company’s effective risk management practices are essential to maintaining interest-rate risk at prudent levels, ensuring safety and soundness[209] Portfolio Value and Asset Management - The net portfolio value increased from $603.2 million on December 31, 2024, to $720.1 million on September 30, 2025, representing a growth of 19.4%[217] - A 400 basis point increase in rates led to a net portfolio value of $783.9 million, an increase of 11.6% compared to the base scenario[217] - A 200 basis point decrease in rates resulted in a net portfolio value of $686.3 million, a decrease of 4.7%[217] - The company anticipates that projected movements in rates will lead to changes in market values, affecting both assets and liabilities[217] - The asset mix remains centered on loans and deposits, indicating a stable funding strategy[217]