Company Overview - Civista Bancshares (CIVB) is anticipated to report a year-over-year increase in earnings due to higher revenues for the quarter ended June 2025, with a consensus EPS estimate of $0.69, reflecting a +53.3% change [1][3] - Revenues are expected to reach $42.41 million, marking a 10.8% increase from the previous year [3] Earnings Expectations - The upcoming earnings report is scheduled for July 24, and the stock may rise if the actual results exceed expectations, while a miss could lead to a decline [2] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4] Earnings Surprise Prediction - The Most Accurate Estimate for Civista Bancshares is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -4.35%, suggesting a bearish outlook from analysts [12] - The company currently holds a Zacks Rank of 5, which complicates the prediction of an earnings beat [12] Historical Performance - In the last reported quarter, Civista Bancshares had an earnings surprise of +32.00%, reporting $0.66 per share against an expectation of $0.50 [13] - Over the past four quarters, the company has consistently beaten consensus EPS estimates [14] Industry Comparison - Eagle Bancorp Montana, Inc. (EBMT), another player in the Zacks Banks - Midwest industry, is expected to report an EPS of $0.41 for the same quarter, reflecting a year-over-year change of +86.4% [18] - EBMT's revenues are projected to be $21.8 million, up 9.6% from the previous year, with an Earnings ESP of +2.44% and a Zacks Rank of 2, indicating a higher likelihood of beating the consensus EPS estimate [19][20]

Company Overview - Civista Bancshares, Inc. is a financial services holding company with total assets of $4.1 billion, headquartered in Sandusky, Ohio [5] - The primary subsidiary, Civista Bank, offers full-service banking, commercial lending, mortgage, wealth management, and commercial equipment leasing services, operating 42 locations across Ohio, Southeastern Indiana, and Northern Kentucky [5] Recent Offering - Civista Bancshares announced the completion of a public offering where underwriters exercised their overallotment option, resulting in the sale of an additional 494,118 common shares at a price of $21.25 per share [1] - The expected proceeds from this exercise, after deducting the underwriting discount but before other expenses, are approximately $9.9 million [1] Underwriters and Management - Piper Sandler & Co. acted as the sole book-running manager for the offering, with several firms serving as co-managers, including D.A. Davidson & Co., Hovde Group, LLC, Janney Montgomery Scott LLC, Keefe, Bruyette & Woods, and Stephens Inc. [2]

Core Viewpoint - Civista Bancshares, Inc. has announced a public offering of 3,294,120 common shares priced at $21.25 per share, aiming for an aggregate amount of $70.0 million, with an option for underwriters to purchase an additional 494,118 shares [1][2]. Group 1: Offering Details - The gross proceeds from the offering are expected to be approximately $70.0 million before discounts and expenses, potentially increasing to $80.5 million if the underwriters fully exercise their option [2]. - The offering is anticipated to close on July 14, 2025, subject to customary closing conditions [2]. Group 2: Use of Proceeds - The net proceeds from the offering will be utilized for general corporate purposes, which may include supporting organic growth opportunities and future strategic transactions [2]. Group 3: Management and Registration - Piper Sandler & Co. is the sole book-running manager for the offering, with several firms serving as co-managers [3]. - Civista has filed a shelf registration statement with the SEC, including a preliminary prospectus supplement for the offering [4]. Group 4: Company Overview - Civista Bancshares, Inc. is a financial services holding company with assets of $4.1 billion, headquartered in Sandusky, Ohio, and operates 42 locations across Ohio, Southeastern Indiana, and Northern Kentucky [6].

Merger Announcement - Civista Bancshares, Inc. will acquire The Farmers Savings Bank, with a combined total asset of approximately $4.4 billion, total net loans of about $3.2 billion, and total deposits of around $3.5 billion as of March 31, 2025 [1][3] - The acquisition will add two branches in Medina and Lorain Counties, along with approximately $183 million in low-cost core deposits [3] Financial Details - Civista will pay $34.925 million in cash and issue 1,434,491 common shares for all outstanding shares of Farmers, resulting in an aggregate deal value of approximately $70.4 million based on Civista's closing share price of $24.72 on July 9, 2025 [5] - The acquisition is expected to be approximately 10% accretive to Civista's diluted earnings per share once cost savings are fully realized [7] Strategic Rationale - The merger is aimed at enhancing Civista's commercial lending platform and deploying Farmers' excess liquidity, which has a loan-to-deposit ratio of 46%, to drive growth [3][4] - Both companies express a commitment to community banking and believe the merger will provide greater value to shareholders and enhanced resources to customers [4][5] Regulatory and Approval Process - The transaction is expected to close in the fourth quarter of 2025, pending approval from Farmers' shareholders and regulatory authorities [5][6] - Key shareholders of Farmers have agreed to vote in favor of the merger [6] Investor Communication - Civista will host an investor conference call on July 11, 2025, to discuss the merger transaction [8]

Company Overview - Civista Bancshares (CIVB) is based in Sandusky and operates in the Finance sector, with a year-to-date share price change of 12.26% [3] - The company currently pays a dividend of $0.17 per share, resulting in a dividend yield of 2.88%, which is lower than the Banks - Midwest industry's yield of 3.12% and higher than the S&P 500's yield of 1.54% [3] Dividend Performance - Civista Bancshares has an annualized dividend of $0.68, reflecting a 6.3% increase from the previous year [4] - Over the last five years, the company has increased its dividend five times, achieving an average annual increase of 9.33% [4] - The current payout ratio is 30%, indicating that the company distributes 30% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for Civista Bancshares' earnings in 2025 is projected at $2.84 per share, representing a significant increase of 41.29% compared to the previous year [5] Investment Considerations - Dividends are favored by investors for various reasons, including improving stock investing profits and providing tax advantages [6] - It is noted that high-yielding stocks may face challenges during periods of rising interest rates, but Civista Bancshares is considered a compelling investment opportunity due to its strong dividend profile [7] - The stock currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [7]

Group 1 - Civista Bancshares, Inc. will release its second quarter 2025 financial results on July 24, 2025, before market open [1] - A conference call and webcast will be held on the same day at 1:00 p.m. Eastern Time to discuss the financial results, with analysts invited to participate in the Q&A session [1][2] - Civista Bancshares, Inc. is a $4.1 billion financial holding company based in Sandusky, Ohio, with its primary subsidiary, Civista Bank, providing full-service banking and other financial services [3] Group 2 - Civista Bank operates 42 locations across Ohio, Southeastern Indiana, and Northern Kentucky, and offers commercial equipment leasing services nationwide [3] - The company's common shares are traded on the NASDAQ Capital Market under the symbol "CIVB" [3]

[PART I. Financial Information](index=4&type=section&id=PART%20I.%20Financial%20Information) This section presents the unaudited consolidated financial statements and management's discussion and analysis for Q1 2025 [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Q1 2025, detailing balance sheets, income, and cash flows | Financial Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total Assets | $4,146,717,000 | $4,098,469,000 | | Total Liabilities | $3,749,283,000 | $3,709,967,000 | | Total Shareholders' Equity | $397,434,000 | $388,502,000 | | Income Statement (Q1) | 2025 | 2024 | | :--- | :--- | :--- | | Net Interest Income | $32,773,000 | $28,372,000 | | Net Income | $10,168,000 | $6,360,000 | | Diluted EPS | $0.66 | $0.41 | [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) The Consolidated Balance Sheet shows total assets increased to **$4.15 billion** as of March 31, 2025, from **$4.10 billion** at December 31, 2024, driven by an increase in net loans | Balance Sheet Items (in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and due from financial institutions | $90,456 | $63,155 | | Loans, net | $3,063,752 | $3,041,561 | | Total assets | $4,146,717 | $4,098,469 | | **Liabilities & Equity** | | | | Total deposits | $3,238,888 | $3,211,870 | | Short-term FHLB advances | $360,000 | $339,000 | | Total liabilities | $3,749,283 | $3,709,967 | | Total shareholders' equity | $397,434 | $388,502 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) For the first quarter of 2025, net income significantly increased to **$10.2 million** from **$6.4 million** in the same period of 2024, primarily driven by a **15.5%** increase in net interest income | Key Metrics (Q1, in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net Interest Income | $32,773 | $28,372 | | Provision for credit losses | $1,567 | $1,992 | | Total Noninterest Income | $7,860 | $8,256 | | Total Noninterest Expense | $27,126 | $27,441 | | Net Income | $10,168 | $6,360 | | Earnings per share, diluted | $0.66 | $0.41 | [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income for Q1 2025 was **$11.6 million**, a substantial improvement from **$0.1 million** in Q1 2024, driven by higher net income and a positive shift in other comprehensive income | Comprehensive Income (Q1, in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net income | $10,168 | $6,360 | | Other comprehensive income (loss) | $1,408 | $(6,227) | | Comprehensive income | $11,576 | $133 | [Consolidated Statement of Changes in Shareholders' Equity](index=7&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Shareholders'%20Equity) Shareholders' equity increased from **$388.5 million** at the end of 2024 to **$397.4 million** at March 31, 2025, primarily due to net income and other comprehensive income - Key changes in shareholders' equity for Q1 2025 include: - Net Income: **+$10.17 million** - Other comprehensive income: **+$1.41 million** - Common stock dividends: **-$2.63 million** - Purchase of common stock: **-$0.17 million**[15](index=15&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first three months of 2025, cash and cash equivalents increased by **$27.3 million**, driven by **$44.9 million** in net cash from financing activities | Cash Flow Activities (Q1, in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $3,612 | $752 | | Net cash used for investing activities | $(21,231) | $(34,172) | | Net cash provided by financing activities | $44,920 | $23,324 | | **Increase (decrease) in cash** | **$27,301** | **$(10,096)** | [Notes to Interim Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Interim%20Consolidated%20Financial%20Statements) The notes provide detailed information on accounting policies and financial statement line items, confirming the company operates as a single reportable segment in banking - The company operates primarily in one reportable segment: banking, with main products being residential mortgage, commercial, and installment loans, and deposits primarily consisting of checking, savings, and term certificate accounts[18](index=18&type=chunk)[19](index=19&type=chunk) - The company adopted ASU 2023-07 for segment reporting in 2024 with minimal impact, as it operates as a single reportable segment, and other recently issued accounting standards are not expected to have a material impact[28](index=28&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=46&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management provides an analysis of the company's financial condition and operational results, highlighting total asset growth to **$4.15 billion** and increased net income to **$10.2 million** for Q1 2025 - Total assets increased by **$48.2 million (1.2%)** to **$4.15 billion** at March 31, 2025, compared to year-end 2024, mainly due to increases in net loans and cash[140](index=140&type=chunk) - Net income for Q1 2025 was **$10.2 million ($0.66 per share)**, a significant increase from **$6.4 million ($0.41 per share)** in Q1 2024[159](index=159&type=chunk) - Net interest income increased by **$4.4 million** year-over-year, and the fully tax-equivalent net interest margin expanded to **3.51%** for Q1 2025 from **3.22%** in Q1 2024[160](index=160&type=chunk) [Financial Condition](index=48&type=section&id=Financial%20Condition) As of March 31, 2025, total assets reached **$4.15 billion**, a **1.2%** increase from year-end 2024, with net loans growing by **$22.2 million** | Loan Portfolio Change (Q1 2025 vs Q4 2024, in thousands) | $ Change | % Change | | :--- | :--- | :--- | | Commercial Real Estate—Non Owner Occupied | $20,034 | 1.6% | | Residential Real Estate | $9,480 | 1.2% | | Real Estate Construction | $(8,403) | -2.7% | | **Total loans** | **$22,806** | **0.7%** | | Deposit Change (Q1 2025 vs Q4 2024, in thousands) | $ Change | % Change | | :--- | :--- | :--- | | Noninterest-bearing demand | $(46,411) | -6.7% | | Interest-bearing demand | $48,018 | 11.4% | | Savings and money market | $19,506 | 1.7% | | Time deposits | $45,956 | 9.8% | | **Total Deposits** | **$27,018** | **0.8%** | - The allowance for credit losses to total loans was **1.30%** at March 31, 2025, slightly up from **1.29%** at December 31, 2024[148](index=148&type=chunk) [Results of Operations](index=53&type=section&id=Results%20of%20Operations) For Q1 2025, net income increased by **$3.8 million** year-over-year to **$10.2 million**, driven by a **$4.4 million** increase in net interest income - Net interest income increased by **$4.4 million** in Q1 2025 compared to Q1 2024, driven by a **$3.6 billion** increase in interest income that outpaced a **$0.8 million** decrease in interest expense[160](index=160&type=chunk)[169](index=169&type=chunk) - Noninterest income decreased by **4.8%** YoY, mainly due to lower fee revenue from the CLF division and reduced gains on sale of loans[170](index=170&type=chunk) - Noninterest expense decreased by **1.1%** YoY, primarily due to a **$1.4 million (9.1%)** reduction in compensation expense, partially offset by higher professional fees and FDIC assessment costs[171](index=171&type=chunk) [Capital Resources](index=57&type=section&id=Capital%20Resources) Shareholders' equity grew to **$397.4 million** at March 31, 2025, representing **9.6%** of total assets, with all regulatory capital ratios remaining well above 'well-capitalized' thresholds | Capital Ratios | March 31, 2025 | Well-Capitalized Minimum | | :--- | :--- | :--- | | Total Risk Based Capital | 14.5% | 10.0% | | Tier I Risk Based Capital | 11.0% | 8.0% | | CET1 Risk Based Capital | 10.0% | 6.5% | | Leverage Ratio | 8.7% | 5.0% | [Liquidity](index=59&type=section&id=Liquidity) The company maintains a conservative liquidity position with significant additional borrowing capacity, including **$50 million** in federal funds lines and approximately **$384 million** remaining with the FHLB - The company has access to multiple liquidity sources, including federal funds borrowing lines of **$50 million** and remaining FHLB borrowing capacity of approximately **$384.23 million** as of March 31, 2025[177](index=177&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=60&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section outlines the company's primary market risk, interest-rate risk, and its management through asset/liability techniques, with sensitivity analysis indicating a **3%** impact on net portfolio value for a **100 basis point** rate change - The company's primary market risk exposure is interest-rate risk, which it manages through active board and senior management oversight and a comprehensive risk-management process[179](index=179&type=chunk)[182](index=182&type=chunk) | Change in Rates (bps) | Impact on Net Portfolio Value (%) - Mar 31, 2025 | | :--- | :--- | | +400 | 8% | | +200 | 5% | | +100 | 3% | | Base | 0% | | -100 | (3)% | | -200 | (7)% | [Controls and Procedures](index=62&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - The Principal Executive Officer and Principal Financial Officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[190](index=190&type=chunk) - No changes in internal control over financial reporting occurred during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, these controls[191](index=191&type=chunk) [PART II. Other Information](index=63&type=section&id=PART%20II.%20Other%20Information) This section provides additional disclosures on legal proceedings, risk factors, equity sales, and other corporate information [Legal Proceedings](index=63&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to various legal proceedings in the ordinary course of business, which management believes will not have a material adverse effect on its financial condition or operations - Based on current knowledge and consultation with legal counsel, management does not expect pending legal proceedings to have a material adverse effect on the company[193](index=193&type=chunk) [Risk Factors](index=63&type=section&id=Item%201A.%20Risk%20Factors) There were no material changes to the risk factors disclosed in the company's 2024 Annual Report on Form 10-K, except for an added disclosure concerning risks from U.S. government policy changes - A new risk factor was added regarding the potential for significant changes in U.S. federal government policies and economic priorities to cause disruptions that could adversely impact the company's business, results, and financial condition[194](index=194&type=chunk)[195](index=195&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=64&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2025, the company repurchased **8,182** common shares at an average price of **$20.39** per share, and a new **$13.5 million** repurchase program was announced | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Jan 1 - Jan 31, 2025 | 8,182 | $20.39 | | Feb 1 - Feb 28, 2025 | — | $— | | Mar 1 - Mar 31, 2025 | — | $— | | **Total** | **8,182** | **$20.39** | - A new common share repurchase program was announced on April 15, 2025, authorizing up to **$13.5 million** in repurchases through April 15, 2026[200](index=200&type=chunk) [Defaults Upon Senior Securities](index=64&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) None [Mine Safety Disclosures](index=64&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Not applicable [Other Information](index=64&type=section&id=Item%205.%20Other%20Information) During the quarter ended March 31, 2025, no directors or officers adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - No directors or officers adopted or terminated any Rule 10b5-1 trading plans during the first quarter of 2025[201](index=201&type=chunk) [Exhibits](index=65&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including merger agreements, articles of incorporation, and CEO/CFO certifications - The report includes CEO and CFO certifications as required by Sarbanes-Oxley Act sections 302 and 906, filed as exhibits 31.1, 31.2, 32.1, and 32.2[204](index=204&type=chunk)

Summary of Key Points Core Viewpoint - The earnings estimate for Civista Bancshares, Inc. (NASDAQ: CIVB) is being revised downward due to several factors including reduced loan growth estimates, increased provision expenses, and higher non-interest expenses attributed to the tariff situation [1]. Group 1: Earnings Estimates - The earnings estimate for Civista Bancshares is being revised downward [1]. - The revision is influenced by a reduction in loan growth estimates [1]. - An increase in provision expense estimates is also contributing to the downward revision [1]. Group 2: Non-Interest Expenses - Non-interest expenses are expected to rise due to the ongoing tariff situation [1].

Core Insights - Three stocks with strong momentum and buy rankings are highlighted for investors: Spotify Technology, Sony, and Civista Bancshares [1][2][3] Company Summaries - **Spotify Technology (SPOT)**: - Zacks Rank: 1 (Strong Buy) - Earnings estimate increased by 5.3% over the last 60 days - Share price increased by 4.8% over the last three months, while the S&P 500 declined by 8.4% - Momentum Score: A [1] - **Sony (SONY)**: - Zacks Rank: 1 (Strong Buy) - Earnings estimate increased by 4.2% over the last 60 days - Share price increased by 15.4% over the last three months, while the S&P 500 declined by 8.4% - Momentum Score: A [2] - **Civista Bancshares (CIVB)**: - Zacks Rank: 1 (Strong Buy) - Earnings estimate increased by 14.9% over the last 60 days - Share price increased by 7% over the last three months, while the S&P 500 declined by 8.4% - Momentum Score: B [3]

Company Overview - Civista Bancshares (CIVB) is a bank holding company headquartered in Sandusky, with a price change of 0.1% so far this year [3] - The company currently pays a dividend of $0.17 per share, resulting in a dividend yield of 3.23%, which is lower than the Banks - Midwest industry's yield of 3.44% but significantly higher than the S&P 500's yield of 1.65% [3] Dividend Performance - The annualized dividend of Civista Bancshares is $0.68, reflecting a 6.3% increase from the previous year [4] - Over the last 5 years, the company has increased its dividend 4 times on a year-over-year basis, achieving an average annual increase of 9.33% [4] - The current payout ratio is 30%, indicating that the company paid out 30% of its trailing 12-month earnings per share as dividends [4] Earnings Expectations - Civista Bancshares is expected to see earnings growth this fiscal year, with the Zacks Consensus Estimate for 2025 at $2.35 per share, representing a 16.92% increase from the previous year [5] Investment Appeal - The company is viewed as an attractive dividend play and a compelling investment opportunity, holding a Zacks Rank of 2 (Buy) [7]