[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]

Financial Data and Key Metrics Changes - The company reported net income of $10.2 million, or $0.66 per diluted share, representing a $3.8 million or 60% increase compared to the previous February and a $275,000 increase over the linked quarter [5] - Pre-provision net revenue increased by $4.3 million or 47% over Q1 2024 and $1.4 million or 11.9% over the linked quarter [5] - Net interest income for the quarter was $32.8 million, an increase of $1.4 million or 4.5% compared to the linked quarter [6] - The return on assets (ROA) for the quarter was 1%, and the return on equity (ROE) was 10.39% [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 [18] - Noninterest 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 [16] - Noninterest expense was $27.1 million, a decline of $1.2 million or 4.1% from the linked quarter, attributed to reductions in compensation-related expenses [14] Market Data and Key Metrics Changes - Total deposits increased by $27 million or an annualized growth rate of 3.2%, with organic deposit funding (excluding broker deposits) growing by over $67 million [21][22] - The loan-to-deposit ratio at quarter-end was 95.8% [24] - The company’s security portfolio was $648.5 million, representing 15.6% of the balance sheet, with $60 million of unrealized losses [25] Company Strategy and Development Direction - The company announced the renewal of its stock repurchase program, authorizing the repurchase of up to $13.5 million of outstanding shares [12] - The focus remains on increasing tangible common equity and maintaining a disciplined approach to pricing deposits and loans [5][11] - The company aims to balance dividend payments and stock repurchases with capital growth to support future growth [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company’s ability to manage loan and deposit pricing amid economic uncertainties, anticipating low to mid-single-digit loan growth for the remainder of 2025 [31] - The economic environment in Ohio and Southeastern Indiana shows no signs of deterioration, with strong credit quality maintained [30] - Management noted a cautious sentiment among borrowers regarding capital expenditures due to macroeconomic uncertainties [78] Other Important Information - The company made a $1.6 million provision for credit losses, with charge-offs of $976,000 [29] - The allowance for credit losses to total loans ratio was 1.30% at March 31, 2025, consistent with the previous quarter [30] Q&A Session Summary Question: Margin inputs and funding costs - Management indicated there is still opportunity for margin expansion, expecting a four to five basis points increase in the second quarter [38][39] Question: Expense normalization and future investments - Management expects expenses to remain flat in the second half of the year, with some increases due to merit raises and investments in technology [48][49] Question: Fee income outlook - Management anticipates a bounce back in fee income in the second quarter, particularly in mortgage and leasing [60] Question: Loan yield increase - The increase in loan yield was attributed to new loans repricing higher, with no unusual recoveries contributing to the increase [68] Question: Commercial borrowers' sentiment - Management noted a cautious "wait and see" attitude among borrowers regarding capital expenditures due to economic uncertainties [78] Question: Current pipeline and growth guidance - Management indicated that the current loan pipeline remains strong, with ongoing economic activity supporting growth [85][90]

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] - Pre-provision net revenue increased by $4.3 million or 47% compared to Q1 2024, and by $1.4 million or 11.9% from the linked quarter [4] - Net interest income for the quarter was $32.8 million, representing a $1.4 million or 4.5% increase from the linked 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 experienced a decline in non-interest expenses by $1.2 million or 4.1% from the linked quarter, attributed to reductions in compensation-related expenses [8][9] 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] - The loan-to-deposit ratio was 95.8% at quarter-end, indicating a disciplined approach to managing loan growth [15] - The company noted a migration from non-interest bearing accounts to higher rate deposit accounts during the quarter [14] Company Strategy and Development Direction - The company aims to continue focusing on core deposit funding and reducing reliance on brokered funding, which is seen as a valuable characteristic contributing to profitability [16] - Management plans to maintain loan and lease rates higher to manage the loan-to-deposit ratio within a range of 90% to 95% [7] - The company is committed to increasing tangible common equity while balancing dividend payments and stock repurchases [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the economy across Ohio and Southeastern Indiana, with no signs of deterioration in credit quality [19] - The company anticipates low to mid-single digit loan growth for the remainder of 2025, tempered by economic uncertainties [20] - Management highlighted the importance of attracting low-cost deposits to support loan growth and overall profitability [68] 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 opportunities - Management indicated there is still opportunity for margin expansion, expecting 4 to 5 basis points in the second quarter [26][27] Question: Expectations for fee income - Management expects a bounce back in fee income in the second quarter, particularly in mortgage and leasing [39] Question: Loan yield increase - The increase in loan yield was attributed to new loans repricing higher, with no unusual recoveries contributing [50] Question: Impact of economic conditions on borrowers - Management noted a cautious sentiment among borrowers due to economic uncertainties, potentially slowing CapEx spending [55] Question: Credit metrics outlook - Management remains optimistic about credit quality, with delinquencies down and a healthy allowance for credit losses [82]

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]

Core Viewpoint - Civista Bancshares reported quarterly earnings of $0.66 per share, exceeding the Zacks Consensus Estimate of $0.50 per share, and showing an increase from $0.41 per share a year ago, representing a 32% earnings surprise [1][2] Financial Performance - The company posted revenues of $40.63 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.37%, and up from $36.88 million year-over-year [2] - Over the last four quarters, Civista Bancshares has consistently surpassed consensus EPS estimates [2] Stock Performance - Civista Bancshares shares have declined approximately 1.2% since the beginning of the year, while the S&P 500 has decreased by 8.6% [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations of outperforming the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.56 on revenues of $41.56 million, and for the current fiscal year, it is $2.35 on revenues of $167.9 million [7] - The estimate revisions trend for Civista Bancshares is favorable, which may influence future stock movements [6][5] Industry Context - The Banks - Midwest industry, to which Civista Bancshares belongs, is currently ranked in the top 10% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8]

Financial Performance - Net income for Q1 2025 was $10.2 million, an increase of 59% or $3.8 million from $6.4 million in Q1 2024[5] - Earnings per share rose to $0.66, up $0.25 from $0.41 in Q1 2024[5] - Return on Assets was 1.00%, compared to 0.66% in Q1 2024[8] - Return on Equity improved to 10.39%, up from 6.89% in Q1 2024[8] - Net income available to common shareholders reached $10,168 thousand, compared to $6,360 thousand in the previous year, reflecting a significant increase of 59.5%[35] - Basic earnings per common share improved to $0.66, up from $0.41, indicating a growth of 60.98%[35] - Net income for Q1 2025 reached $10,168,000, up from $9,893,000 in Q4 2024, indicating a 2.8% increase[47] Asset and Deposit Growth - Total assets increased to $4.1 billion, a rise of $48.2 million or 1.2% from December 31, 2024[7] - Total deposits reached $3.2 billion, an increase of $27.0 million or 0.8% from December 31, 2024[9] - Total assets grew to $4,146,717 thousand, up from $4,098,469 thousand, a rise of 1.18%[36] - Total deposits increased to $3,238,888 thousand from $3,211,870 thousand, reflecting a growth of 0.84%[36] - Total loans at the end of Q1 2025 reached $3,104,036 thousand, a 0.7% increase from $3,081,230 thousand at the end of Q4 2024[31] - Total deposits decreased to $3,209,277,000 in Q1 2025 from $3,285,485,000 in Q4 2024, a decline of 2.3%[41] Interest and Noninterest Income - Net interest income for Q1 2025 was $32,773 thousand, compared to $28,372 thousand in Q1 2024, reflecting an increase of 15.6%[26] - Interest income increased to $53,733 thousand in Q1 2025 from $50,128 thousand in Q1 2024, representing a growth of 5.2%[35] - Noninterest income decreased to $7,860 thousand in Q1 2025, down 4.8% from $8,256 thousand in Q1 2024[29] - Noninterest income for Q1 2025 was $7,860,000, a decrease from $9,015,000 in Q4 2024, reflecting a decline of 12.8%[49] Expense Management - Noninterest expense decreased to $27.1 million, down $0.3 million or 1.1% from the same period last year[14] - Total noninterest expense slightly decreased to $27,126 thousand in Q1 2025, a reduction of 1.1% from $27,441 thousand in Q1 2024[30] - Total noninterest expense for the three months ended March 31, 2025, was $27,126,000, a decrease from $28,296,000 in the previous quarter[51] Credit Quality - The allowance for credit losses to loans ratio was 1.30% at March 31, 2025, compared to 1.34% at March 31, 2024[11] - The allowance for credit losses increased to $40,284 thousand at the end of Q1 2025, up from $38,849 thousand at the end of Q1 2024[33] - Non-performing assets totaled $31,198 thousand at the end of Q1 2025, a decrease from $32,627 thousand at the end of Q4 2024[33] - The provision for credit losses was $1,248 thousand in Q1 2025, down from $2,042 thousand in Q1 2024[33] - Non-performing assets to total assets decreased to 0.75% from 0.80%, indicating improved asset quality[39] Efficiency and Ratios - The efficiency ratio was 64.9%, significantly improved from 72.3% in Q1 2024[15] - The efficiency ratio (non-GAAP) improved to 64.9% from 68.3% in the previous quarter[57] - The Tier 1 risk-based capital ratio improved to 10.97% from 10.47% in the previous quarter[53] - Tangible common equity increased to $264,408,000 from $255,099,000 in the previous quarter[56] - The allowance to total loans ratio was 1.30%, slightly up from 1.29% in the previous quarter[39] Other Financial Metrics - Total interest-earning assets increased to $3,801,709 thousand in Q1 2025, up from $3,552,552 thousand in Q1 2024, representing a growth of 7.0%[26] - The net interest margin improved to 3.51% in Q1 2025, compared to 3.22% in Q1 2024[26] - The net interest margin (tax equivalent) increased to 3.51% in Q1 2025, compared to 3.36% in Q4 2024[48] - Book value per share slightly decreased to $20.12 from $20.15, showing a marginal decline[36] - Tangible book value per share increased to $17.04 from $16.47 in the previous quarter[56] - The dividend payout ratio for Q1 2025 was 25.90%, up from 25.45% in Q4 2024[48]