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]

Civista Bancshares, Inc. (NASDAQ:CIVB) Q1 2025 Earnings Conference Call April 24, 2025 1:00 PM ET Company Participants Dennis Shaffer - President & Chief Executive Officer Rich Dutton - Senior Vice President & Chief Operating Officer Ian Whinnem - Senior Vice President & Chief Financial Officer Conference Call Participants Justin Crowley - Piper Sandler Brendan Nosal - Hovde Group Terry McEvoy - Stephens Manuel Navas - D.A. Davidson Emily Lee - KBW Operator Before we begin, I would like to remind you that t ...

Civista Bancshares (CIVB) Q1 2025 Earnings Call April 24, 2025 01:00 PM ET Company Participants Dennis Shaffer - President, CEO & Vice ChairmanIan Whinnem - Interim Principal Accounting Officer, Senior VP & CFOBrendan Nosal - Director - Equity ResearchTerry Mcevoy - Managing DirectorRichard Dutton - Senior VP & COO Conference Call Participants Justin Crowley - Research AnalystManuel Navas - MD & Senior Research AnalystEmily Lee - Analyst Operator Before we begin, I would like to remind you that this confere ...

Financial Data and Key Metrics Changes - The company reported net income of $10.2 million or $0.66 per diluted share, a 60% increase from Q1 2024 and a $275,000 increase from the previous quarter [4] - Net interest income for the quarter was $32.8 million, representing a 4.5% increase compared to the previous quarter [5] - The efficiency ratio improved to 64.9% from 68.3% in the linked quarter and 73.8% in the prior year's first quarter [11] Business Line Data and Key Metrics Changes - The loan and lease portfolio grew at an annualized rate of 2.8% during the first quarter, with total loans and leases increasing by $22.8 million [11] - Non-interest income declined by $1.2 million or 12.8% compared to the linked quarter, primarily due to a decrease in gains on the sale of loans and other fees [10] - The company anticipates loan growth to be in the mid-single digit range for the remainder of 2025 [14] Market Data and Key Metrics Changes - Total deposits increased by $27 million or an annualized growth rate of 3.2%, with organic deposit growth of $67.1 million excluding brokered deposits [14][15] - The loan-to-deposit ratio was 95.8% at quarter-end, indicating a disciplined approach to managing loan growth [15] - The average deposit account, excluding CDs, was approximately $28,000, reflecting a granular deposit base [15] Company Strategy and Development Direction - The company continues to focus on deepening customer relationships to reduce reliance on brokered funding, which is seen as a valuable characteristic of the deposit franchise [16] - Management is committed to increasing tangible common equity while balancing dividend payments and potential stock repurchases [17][18] - The company plans to invest in technology and digital initiatives to enhance customer engagement and operational efficiency [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the core deposit franchise and the ability to control non-interest expenses, positioning the company well for future success [19][90] - The economic environment in Ohio and Southeastern Indiana remains stable, with no signs of deterioration in credit quality [19] - Management anticipates continued loan demand but acknowledges potential impacts from economic uncertainties on loan growth [14][19] Other Important Information - The company announced a quarterly dividend of $0.17 per share, representing an annualized yield of 3.48% [8] - A stock repurchase program was renewed, authorizing the repurchase of up to $13.5 million in outstanding shares [8] Q&A Session Summary Question: Margin inputs and funding costs - Management indicated there is still opportunity for margin expansion, expecting 4-5 basis points in the second quarter and 2-3 basis points in the third quarter [26][30] Question: Expense normalization and future investments - Management expects expenses to remain flat in the second quarter, with potential increases in the second half due to investments in technology and marketing [33][37] Question: Fee income outlook - Management anticipates a bounce back in fee income in the second quarter, particularly in mortgage and leasing [40][42] Question: Loan yield increase - The increase in loan yield was attributed to new loans repricing higher, with no unusual recoveries contributing to the increase [51] Question: Commercial borrowers' sentiment - Management noted a cautious sentiment among commercial borrowers regarding CapEx spending due to economic uncertainties [56][58] Question: Credit metrics and expectations - Management remains optimistic about credit quality, with delinquencies down and a healthy allowance for credit losses [83][84]

Core Insights - Civista Bancshares (CIVB) reported revenue of $40.63 million for Q1 2025, a year-over-year increase of 10.2% and exceeding the Zacks Consensus Estimate of $40.09 million by 1.37% [1] - The company achieved an EPS of $0.66, up from $0.41 a year ago, representing a surprise of 32% compared to the consensus estimate of $0.50 [1] Financial Performance Metrics - Net interest margin (tax equivalent) was reported at 3.5%, surpassing the average estimate of 3.4% from two analysts [4] - The efficiency ratio (non-GAAP) stood at 64.9%, significantly better than the average estimate of 72.1% [4] - Net interest income reached $32.77 million, exceeding the average estimate of $31.52 million [4] - Net gain on sale of loans was $0.60 million, below the average estimate of $1.15 million [4] - Total noninterest income was reported at $7.86 million, slightly below the average estimate of $8.01 million [4] Stock Performance - Shares of Civista Bancshares have returned +5.4% over the past month, contrasting with the Zacks S&P 500 composite's -5.1% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]