Group 1: Civista Bancshares Performance - Civista Bancshares shares rallied 6.7% in the last trading session, closing at $16.64, with notable trading volume [4] - The stock has gained 13% over the past four weeks, indicating positive momentum [4] - The consensus EPS estimate for the upcoming quarterly report is $0.40, reflecting a year-over-year decline of 37.5%, while revenues are expected to be $36.97 million, down 8.7% from the previous year [5] Group 2: Market Context and Industry Trends - Encouraging inflation numbers and a rising unemployment rate are boosting confidence in the Federal Reserve's ability to bring prices down toward the 2% target, leading to predictions of interest rate cuts as early as September [1] - The banking sector is expected to benefit from lower funding costs and improved loan demand as interest rates decrease, which has led to increased investor optimism [6] - Civista Bancshares is part of the Zacks Banks - Midwest industry, which includes Old National Bancorp, whose shares also saw a 2.9% increase, with a 15.1% return over the past month [3]

Liquidity ITEM 3. Quantitative and Qualitative Disclosures About Market Risk Several techniques may be used by an institution to minimize interest-rate risk. One approach used by the Company is to periodically analyze its assets and liabilities and make future financing and investment decisions based on payment streams, interest rates, contractual maturities, and estimated sensitivity to actual or potential changes in market interest rates. Such activities fall under the broad definition of asset/liability ...

Financial Data and Key Metrics Changes - The company reported net income of $6.4 million or $0.41 per diluted share, a decline of $6.5 million from Q1 2023 and a $3.3 million decline from the linked quarter [6] - Non-interest income decreased by approximately $3.8 million compared to the previous year, primarily due to changes in overdraft processing and the loss of a one-time bonus from a debit brand agreement [7][19] - The efficiency ratio for the quarter was 73.8%, compared to 64.3% for the linked quarter, but adjusted for depreciation expense, it would have been 70% [18] Business Line Data and Key Metrics Changes - Non-interest expense for the quarter was $27.7 million, representing a $2.3 million or 9% increase from the linked quarter, driven by higher compensation-related expenses [21] - The loan and lease portfolios grew at an annualized rate of 5% for the quarter, with significant increases in non-owner-occupied commercial real estate loans and residential real estate loans [16][23] - Non-interest income declined by $319,000 or 3.6% compared to the linked quarter, primarily due to declines in service charges and swap fee income [19] Market Data and Key Metrics Changes - Total deposits were mostly flat, declining just $4.3 million or negative 0.1% since the beginning of the year, but core deposits declined by $29 million or 1% year-to-date [25] - Non-interest-bearing deposits made up 29.5% of total deposits at March 31, with 13.1% of deposits exceeding FDIC limits [26] - The company’s cash and unpledged securities at March 31 were $452 million, covering uninsured deposits [27] Company Strategy and Development Direction - The company is focused on reducing reliance on wholesale and borrowed funding while enhancing core deposit gathering initiatives [11][25] - The Ohio Home Buyers Plus Program is expected to provide up to $100 million in low-cost funds to participating banks, which could help improve funding costs [14] - The company aims to rebuild its tangible common equity (TCE) ratio to between 7% and 7.5% while balancing share repurchases and dividend payments [31] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the operating environment, including margin compression and the impact of regulatory scrutiny on tax refund processing [6][12] - The company remains optimistic about loan growth in the mid-single-digit range for the remainder of 2024, despite isolated credit issues [16][35] - Management emphasized the importance of maintaining a strong core deposit franchise and disciplined pricing strategies to support future success [104] Other Important Information - The company announced a quarterly dividend of $0.16 per share, representing a 4.16% yield and a dividend payout ratio of 42.11% [18] - The allowance for credit losses increased due to higher reserves required by the CECL model, primarily related to specific credits in hospitality and cellular tower sectors [17][33] Q&A Session Summary Question: Why was the CFO position filled now? - Management indicated that the timing was appropriate as the long-serving CFO is approaching retirement, allowing for a smooth transition [40][42] Question: What are the expectations for the expense base moving forward? - Management expects expenses to remain around $28.4 million for the rest of the year, with merit increases affecting the second quarter [43][44] Question: What is the outlook for net interest margin? - Management noted that while margin contraction is expected, there are positive signs for stabilization due to repricing of loans and funding initiatives [47][48] Question: How is the loan pipeline and growth outlook? - The loan pipeline is strong, particularly in multifamily and metro markets, with confidence in maintaining mid-single-digit growth [57][59] Question: What is the impact of the tax refund processing program on non-interest-bearing funds? - Management indicated that the remaining funds from the tax program would likely be depleted in the second quarter [61] Question: What is the expected trend for service charge revenue? - Management projected that service charge revenue would be lower than the first quarter run rate due to changes in overdraft processing [62]

Civista Bancshares (CIVB) reported $36.88 million in revenue for the quarter ended March 2024, representing a year-over-year decline of 15.6%. EPS of $0.41 for the same period compares to $0.82 a year ago.The reported revenue represents a surprise of -2.98% over the Zacks Consensus Estimate of $38.01 million. With the consensus EPS estimate being $0.47, the EPS surprise was -12.77%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wal ...

SANDUSKY, Ohio, April 30, 2024 /PRNewswire/ -- Civista Bancshares, Inc. ("Civista") (NASDAQ: CIVB) announced today that Ian Whinnem will join the Company as Senior Vice President, Chief Financial Officer effective June 3, 2024. He will be a member of Civista's Executive Leadership Team reporting to President and Chief Executive Officer, Dennis G. Shaffer. Mr. Whinnem joins Civista with over 25 years of corporate finance management in banking, including the past seven years as Senior Vice President, Director ...

[First Quarter 2024 Highlights](index=1&type=section&id=First%20quarter%20highlights) Civista's Q1 2024 net income fell to **$6.4 million** (**$0.41**/share) from **$12.9 million** (**$0.82**/share) in Q1 2023, driven by a **$3.8 million** noninterest income shortfall Q1 2024 vs Q1 2023 Performance | Metric | Q1 2024 (USD) | Q1 2023 (USD) | | :--- | :--- | :--- | | Net Income | $6.4 million | $12.9 million | | Diluted EPS | $0.41 | $0.82 | - The company faced approximately **$3.8 million** in noninterest income headwinds due to exiting the tax refund business, the absence of a prior-year **$1.5 million** one-time bonus, and changes in overdraft processing[3](index=3&type=chunk) - The first quarter dividend of **$0.16** per share represents an annualized yield of **4.16%** and a dividend payout ratio of **42.11%**, based on the March 29, 2024 share price[6](index=6&type=chunk) [Results of Operations](index=1&type=section&id=Results%20of%20Operations) Q1 2024 operations saw a **13.0%** net interest income and **23.2%** noninterest income decrease, driven by higher interest expense and strategic exits, worsening the efficiency ratio to **73.8%** [Net Interest Income and Margin](index=1&type=section&id=Net%20interest%20income) Q1 2024 net interest income decreased by **13.0%** to **$28.4 million**, with net interest margin contracting **77 basis points** to **3.22%**, due to surging interest expense Net Interest Income and Margin (Q1 2024 vs Q1 2023) | Metric | Q1 2024 (USD) | Q1 2023 (USD) | Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $28.4 million | $32.6 million | -13.0% | | Net Interest Margin | 3.22% | 3.99% | -77 bps | - Interest income increased due to a **41 basis point** rise in yield (+$3.7M) and a **$239.3 million** increase in average earning assets (+$3.5M)[7](index=7&type=chunk) - Interest expense surged by **$12.8 million (143.4%)** YoY, driven by a **140 basis point** increase in the average rate paid on interest-bearing liabilities and a **$411.6 million** increase in their average balance, primarily in time deposits[8](index=8&type=chunk) [Provision for Credit Losses](index=4&type=section&id=Provision%20for%20credit%20losses) Q1 2024 provision for credit losses increased to **$2.0 million** from **$620 thousand** in Q1 2023, with the allowance for credit losses to loans rising to **1.34%** Provision for Credit Losses (Q1 2024 vs Q1 2023) | Period | Provision for Credit Losses (USD) | | :--- | :--- | | Q1 2024 | $2.0 million | | Q1 2023 | $620 thousand | - The reserve ratio (allowance for credit losses to loans) increased to **1.34%** as of March 31, 2024, from **1.30%** at December 31, 2023[12](index=12&type=chunk) [Noninterest Income](index=4&type=section&id=Noninterest%20income) Noninterest income decreased by **23.2%** to **$8.5 million** YoY, primarily due to the exit from tax refund processing and the absence of a prior-year **$1.5 million** nonrecurring fee Noninterest Income Breakdown (in thousands) | Category | Q1 2024 (USD thousands) | Q1 2023 (USD thousands) | $ Change (USD thousands) | | :--- | :--- | :--- | :--- | | Total Noninterest Income | $8,504 | $11,068 | $(2,564) | | Tax refund processing fees | $0 | $1,900 | $(1,900) | | Other | $1,602 | $1,926 | $(324) | | Service charges | $1,440 | $1,773 | $(333) | - The company generated zero income from tax refund processing fees after exiting the third-party payment processor business, compared to **$1.9 million** in Q1 2023[17](index=17&type=chunk) - Other income decreased primarily due to a **$1.5 million** nonrecurring fee collected in 2023 from the renewal of the company's MasterCard contract[17](index=17&type=chunk) [Noninterest Expense](index=5&type=section&id=Noninterest%20expense) Noninterest expense increased marginally by **0.9%** to **$27.7 million** YoY, with compensation and software costs rising, while the efficiency ratio worsened to **73.8%** Noninterest Expense Breakdown (in thousands) | Category | Q1 2024 (USD thousands) | Q1 2023 (USD thousands) | % Change | | :--- | :--- | :--- | :--- | | Total Noninterest Expense | $27,689 | $27,432 | 0.9% | | Compensation expense | $15,457 | $15,105 | 2.3% | | Professional services | $1,149 | $1,555 | -26.1% | | Software maintenance expense | $1,189 | $878 | 35.4% | - The efficiency ratio deteriorated to **73.8%** for Q1 2024, compared to **62.0%** for Q1 2023, primarily due to decreased net interest and noninterest income[23](index=23&type=chunk) [Balance Sheet Analysis](index=5&type=section&id=Balance%20Sheet) Total assets grew to **$3.9 billion** with a **1.3%** loan portfolio increase, while deposits remained stable at approximately **$3.0 billion** despite a shift to higher-cost accounts - Total assets increased by **$18.8 million (<1%)** from December 31, 2023, to March 31, 2024, driven by a **$36.4 million** increase in the loan portfolio[25](index=25&type=chunk) [Loan Portfolio](index=6&type=section&id=End%20of%20period%20loan%20balances) The loan portfolio grew by **$36.4 million (1.3%)** to **$2.9 billion** in Q1 2024, driven by increases in commercial and residential real estate loans Loan Balances by Category (in thousands) | Category | March 31, 2024 (USD thousands) | Dec 31, 2023 (USD thousands) | $ Change (USD thousands) | | :--- | :--- | :--- | :--- | | **Total Loans** | **$2,898,139** | **$2,861,727** | **$36,412** | | Commercial Real Estate: Non-owner Occupied | $1,185,688 | $1,161,893 | $23,795 | | Residential Real Estate | $676,800 | $659,841 | $16,959 | | Real Estate Construction | $267,737 | $260,409 | $7,328 | [Deposits](index=7&type=section&id=Deposits) Total deposits marginally decreased by **$4.3 million** to **$2.98 billion**, with a **$63.7 million** outflow from noninterest-bearing deposits offset by growth in higher-cost accounts Deposit Balances by Category (in thousands) | Category | March 31, 2024 (USD thousands) | Dec 31, 2023 (USD thousands) | $ Change (USD thousands) | | :--- | :--- | :--- | :--- | | **Total Deposits** | **$2,980,695** | **$2,985,028** | **$(4,333)** | | Noninterest-bearing demand | $707,993 | $771,699 | $(63,706) | | Savings and money market | $929,126 | $863,067 | $66,059 | | Time deposits | $908,884 | $900,813 | $8,071 | - The decrease in noninterest-bearing demand deposits was primarily due to a **$51.7 million** decrease in business accounts and a **$19.5 million** decrease related to the former tax refund program[28](index=28&type=chunk) [Shareholders' Equity and Stock Repurchase Program](index=8&type=section&id=Shareholders'%20Equity) Shareholders' equity decreased by **$2.3 million** to **$369.7 million** in Q1 2024, primarily due to increased accumulated other comprehensive loss, with no share repurchases - Total shareholders' equity decreased by **$2.3 million** from year-end 2023, as a **$3.9 million** increase in retained earnings was more than offset by a **$6.2 million** increase in accumulated other comprehensive loss[33](index=33&type=chunk) - Civista did not repurchase any shares in 2024. Approximately **$12.0 million** remains under the current **$13.5 million** repurchase authorization, which expires in May 2024[32](index=32&type=chunk) [Asset Quality](index=8&type=section&id=Asset%20Quality) Asset quality showed slight deterioration with non-performing assets increasing to **$15.7 million (0.41% of total assets)**, while the allowance for credit losses to loans rose to **1.34%** Asset Quality Metrics | Metric | March 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Non-performing assets | $15.7 million | $15.1 million | | Non-performing assets to assets ratio | 0.41% | 0.39% | | Allowance for credit losses to loans | 1.34% | 1.30% | | Allowance for credit losses to non-performing loans | 247.06% | 245.67% | - Net charge-offs for Q1 2024 were **$353 thousand**, compared to **$128 thousand** for Q1 2023[34](index=34&type=chunk) [Supplemental Financial Information](index=11&type=section&id=Financial%20Highlights) This section presents consolidated financial statements, key Q1 2024 figures including **$6.4 million** net income, balance sheet data, quarterly trends, and non-GAAP reconciliations for tangible common equity [Consolidated Financial Statements](index=11&type=section&id=Consolidated%20Condensed%20Statement%20of%20Income) Q1 2024 condensed income statement shows **$6.4 million** net income and **$28.4 million** net interest income, with the balance sheet reporting **$3.88 billion** total assets Consolidated Income Statement (in thousands) | Metric | Q1 2024 (USD thousands) | Q1 2023 (USD thousands) | | :--- | :--- | :--- | | Net interest income | $28,372 | $32,601 | | Provision for credit losses | $1,992 | $821 | | Net income | $6,360 | $12,888 | | Earnings per share, diluted | $0.41 | $0.82 | Selected Balance Sheet Items (in thousands) | Metric | March 31, 2024 (USD thousands) | Dec 31, 2023 (USD thousands) | | :--- | :--- | :--- | | Total assets | $3,880,258 | $3,861,418 | | Net loans | $2,859,290 | $2,824,568 | | Total deposits | $2,980,695 | $2,985,028 | | Total shareholders' equity | $369,659 | $372,002 | [Quarterly Financial Trends](index=13&type=section&id=Supplemental%20Financial%20Information) Five-quarter trends show total interest expense more than doubling to **$21.8 million**, leading to consistent declines in net interest income and net income, while assets and loans grew modestly Quarterly Income Statement Trend (in thousands) | Metric | Q1 2024 (USD thousands) | Q4 2023 (USD thousands) | Q3 2023 (USD thousands) | Q2 2023 (USD thousands) | Q1 2023 (USD thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | | Net interest income | $28,372 | $30,052 | $31,504 | $31,339 | $32,601 | | Net income | $6,360 | $9,655 | $10,387 | $10,034 | $12,888 | - Total interest expense has more than doubled over the last five quarters, increasing from **$10.3 million** in Q1 2023 to **$21.8 million** in Q1 2024, compressing profitability[50](index=50&type=chunk) [Reconciliation of Non-GAAP Measures](index=16&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section reconciles GAAP shareholders' equity to non-GAAP tangible common equity, which was **$235.0 million** as of March 31, 2024, with a tangible book value per share of **$14.95** Tangible Common Equity Ratio (Non-GAAP) | Metric | March 31, 2024 (USD) | Dec 31, 2023 (USD) | | :--- | :--- | :--- | | Total Shareholder's Equity (GAAP) | $369.7M | $372.0M | | Less: Goodwill and intangible assets | $134.6M | $135.0M | | Tangible common equity (Non-GAAP) | $235.0M | $237.0M | | Tangible book value per share | $14.95 | $15.10 | | Tangible common equity to tangible assets | 6.28% | 6.36% |

SANDUSKY, Ohio, April 30, 2024 /PRNewswire/ -- Civista Bancshares, Inc. (NASDAQ:CIVB) ("Civista") announced its unaudited financial results for the three months ending March 31, 2024.  First quarter highlights Net income of $6.4 million, or $0.41 per diluted share, for the first quarter of 2024, compared to $12.9 million, or $0.82 per diluted share, for the first quarter of 2023.    Low cost of deposits of 214 basis points and total funding costs of 254 basis points for the quarter. Based on the March 29, ...

Trevor WilliamsCivista Bancshares, Inc. (NASDAQ:CIVB), incorporated in 1987 and headquartered in Sandusky, Ohio, is a financial holding company that through its primary subsidiary, Civista Bank, provides banking services in Ohio. There's a very good chance that an investor's yield on cost at the current price level of the shares will only get better in a relatively short period, and that value investors will get paid to wait for the market to assign a much higher premium to TBV that I think CIVB deserve ...

SANDUSKY, Ohio, April 26, 2024 /PRNewswire/ -- Civista Bancshares, Inc. (NASDAQ:CIVB) ("Civista") announced today that the Board of Directors has approved a quarterly dividend of 16 cents per common share to shareholders of record May 7, 2024, payable May 22, 2024.  This dividend represents a payout of approximately $2.5 million.  Based on the Civista's closing stock price of common shares of $15.35 on April 24, 2024, the quarterly dividend produces an annualized yield of 4.17%. About Civista Bancshares, In ...

SANDUSKY, Ohio, April 8, 2024 /PRNewswire/ -- Civista Bancshares, Inc. (NASDAQ: CIVB) ("Civista") announced today that it will issue its first quarter 2024 financial results prior to market open on Tuesday, April 30, 2024. Civista Bancshares, Inc. will also host a conference call and webcast at 1:00 p.m. Eastern Time on Tuesday, April 30, 2024, to discuss its financial results.  Analysts may participate in the question-and-answer session. Conference Call, Replay and Webcast Information: Date:  Tuesday, Apri ...