Civista Bancshares(US:CIVB)2025-10-23 11:00Financial Performance - Net income for Q3 2025 was $12.8 million, a 53% increase from $8.4 million in Q3 2024, and a 16% increase from $11.0 million in Q2 2025[2] - Diluted earnings per common share rose to $0.68, up 28% from $0.53 in Q3 2024, and down from $0.71 in Q2 2025[2] - Net income for the nine months ended September 30, 2025, was $33,943,000, a 55.9% increase from $21,790,000 in the same period of 2024[53] - The return on average assets improved to 1.22% in Q3 2025, compared to 0.83% in Q3 2024, indicating enhanced asset efficiency[67] - The return on average equity for the same period was 10.70%, up from 8.73% a year earlier, demonstrating stronger profitability for shareholders[67] Income and Revenue - Net interest income increased by $5.3 million, or 18.2%, to $34.5 million compared to Q3 2024[12] - Noninterest income for Q3 2025 totaled $9.6 million, a decrease of 4.6% compared to the same period last year[18] - Total noninterest income increased to $9,633 million in Q3 2025 from $10,099 million in Q3 2024, showing a decrease of 4.6% year-over-year[68] - Total interest income for the three months ended September 30, 2025, was $55,240 million, an increase from $52,741 million in the same period last year, representing a growth of 9.5%[66] Efficiency and Ratios - Efficiency ratio improved to 61.4%, compared to 70.5% in Q3 2024 and 64.5% in Q2 2025, marking the fifth consecutive quarter of improvement[2] - The effective income tax rate for Q3 2025 was 18.5%, up from 15.6% in Q3 2024[23] - The equity to asset ratio improved to 12.13% as of September 30, 2025, from 9.48% as of December 31, 2024[55] - The Tier 1 leverage ratio improved to 10.96% from 8.80% in the previous quarter[74] Assets and Liabilities - Total assets as of September 30, 2025, were $4.1 billion, a decrease of 1.7% from June 30, 2025, but an increase of 0.4% from December 31, 2024[9] - Total loans at the end of the period reached $3,095,994, a slight increase of 0.5% from $3,081,230[48] - Total deposits increased to $3.2 billion, up 1.1% from June 30, 2025, and 0.6% from December 31, 2024[10] - Total shareholders' equity increased to $499.0 million as of September 30, 2025, up by $94.9 million from June 30, 2025[24] Expenses - Compensation expense decreased by $0.7 million for Q3 2025 compared to Q3 2024, primarily due to increased deferral of salaries related to loan originations[8] - Noninterest expense for the nine months ended September 30, 2025, was $82,935, a decrease of 1.5% from $84,225 in 2024[47] - Noninterest expense for the three months ended September 30, 2025, was $28,327 thousand, slightly down from $28,394 thousand in the same period last year, indicating cost management efforts[69] Mergers and Acquisitions - The company announced a definitive merger agreement to acquire The Farmers Savings Bank, expected to close in November 2025[8] - The merger with The Farmers Savings Bank is expected to close in November 2025, pending shareholder approval[27] - Non-recurring adjustments negatively impacted net income by approximately $0.7 million on a pre-tax basis due to acquisition-related expenses from the merger with The Farmers Savings Bank[85] Credit Quality - The allowance for credit losses to loans ratio was 1.30% as of September 30, 2025, compared to 1.29% at December 31, 2024[17] - Provision for credit losses decreased to $378,000 for the three months ended September 30, 2025, compared to $1,346,000 in the same period of 2024, reflecting improved asset quality[53] - Non-performing assets totaled $22,804,000 as of September 30, 2025, down from $32,852,000 as of December 31, 2024, indicating a reduction in credit risk[54]