Civista Bancshares(US:CIVB)2024-11-12 13:00Financial Performance - Total interest and dividend income for the three months ended September 30, 2024, was $52,741, an increase of 13.0% from $46,601 in the same period of 2023[5] - Net income for the three months ended September 30, 2024, was $8,366, a decrease of 19.5% compared to $10,387 for the same period in 2023[6] - Earnings per common share, basic, for the three months ended September 30, 2024, was $0.53, down from $0.66 in the same period of 2023[5] - Net income for the nine months ended September 30, 2024, was $21,790,000, compared to $33,309,000 for the same period in 2023, reflecting a decrease of approximately 34.3%[9] - Total revenue for the company reached $15,954 million, an increase from $11,508 million in the previous period, representing a growth of approximately 38.5%[67] Interest Income and Expense - Net interest income after provision for credit losses for the nine months ended September 30, 2024, was $80,688, down 13.0% from $92,738 in the same period of 2023[5] - Total interest expense increased by $30,230, or 79.8%, to $68,106 for the nine months ended September 30, 2024, compared to $37,876 in 2023[168] - Total interest expense increased by $9,226, or 64.6%, to $23,508 for the three months ended September 30, 2024[152] - The average balance of loans increased by $352,205, or 13.1%, to $3,031,884 for the three months ended September 30, 2024[150] Noninterest Income and Expense - Total noninterest income for the nine months ended September 30, 2024, was $28,733, slightly up from $28,342 in the same period of 2023[5] - Noninterest income for the three months ended September 30, 2024, was $9,686,000, an increase from $8,125,000 in the same period of 2023[124] - Total noninterest expense for the three months ended September 30, 2024, was $27,981, an increase of 5.1% from $26,622 in the same period of 2023[5] - Total noninterest expense for the nine months ended September 30, 2024 was $84,225, an increase of $2,522, or 3.1%, from $81,703 for the same period in 2023[177] Credit Losses and Provisions - The provision for credit losses on loans for the three months ended September 30, 2024, was $1,346, up from $630 in the same period of 2023[5] - Provisions for credit losses totaled $4,668 for the first nine months of 2024, compared to $2,706 for the same period in 2023[134] - The allowance for credit losses increased to $41,268 as of September 30, 2024, compared to $37,160 as of December 31, 2023, reflecting a rise of about 5.7%[51] - The company experienced a notable increase in provisions for credit losses, primarily driven by loan growth during the reporting period[56] Shareholders' Equity - The balance of shareholders' equity as of September 30, 2024, was $394,438, an increase from $373,808 as of June 30, 2024[7] - Total shareholders' equity increased to $394,438,000 as of September 30, 2024, from $332,745,000 at the same time last year[9] - Shareholders' equity increased to $394,438, or 9.7% of total assets, compared to $372,002, or 9.6% of total assets at year-end 2023[146] Loans and Deposits - The company reported net cash provided by operating activities of $25,625,000 for the nine months ended September 30, 2024, down from $60,593,000 for the same period in 2023[10] - The company reported an increase in deposits of $238,704,000 for the nine months ended September 30, 2024, compared to $175,758,000 for the same period in 2023[10] - The total cash and cash equivalents at the end of the period on September 30, 2024, was $74,662,000, an increase from $50,316,000 at the end of September 2023[10] - The company experienced a net change in loans of $(183,334,000) for the nine months ended September 30, 2024, compared to $(208,689,000) for the same period in 2023[10] Market and Economic Conditions - The effective tax rate for the three months ended September 30, 2024, was 15.6%, compared to 15.2% for the same period in 2023[162] - The company’s primary market risk exposure is interest-rate risk, which is managed through asset/liability management techniques[184] - The total allowance for credit losses as a percentage of total loans was 1.36% at September 30, 2024, up from 1.30% at December 31, 2023[138] Regulatory and Accounting Changes - The Company adopted the Current Expected Credit Losses (CECL) methodology on January 1, 2023, enhancing transparency regarding credit risk[17] - The Company adopted ASC 326 on January 1, 2023, resulting in an increase of $4.3 million in the allowance for credit losses on loans held for investment[18] - ASU 2022-02 was adopted, eliminating guidance for troubled debt restructurings, with no material impact on the financial statements[36] Miscellaneous - Civista Bancshares, Inc. acquired Vision Financial Group, Inc. in Q4 2022, which has been rebranded as Civista Leasing and Finance[13] - The company does not expect to make any contributions to its pension plan in 2024, having made no contributions in 2023[94] - The company reported no modifications to loans for borrowers experiencing financial difficulty during the three and nine months ended September 30, 2024, and September 30, 2023[71]