Civista Bancshares(US:CIVB)2025-11-05 22:01Financial Position - Total assets increased by $14,865, or 0.4%, to $4,113,334 as of September 30, 2025, compared to $4,098,469 at December 31, 2024[156] - Total liabilities decreased by $95,661, or 2.6%, to $3,614,306 as of September 30, 2025, primarily due to a reduction in short-term FHLB advances[156] - Total deposits increased by $18,593 to $3,230,463 as of September 30, 2025, with time deposits rising by 28.0%[167] - Shareholders' equity increased to $499,028, or 12.1% of total assets, from $388,502, or 9.5% of total assets, at December 31, 2024[170] - The Company's total risk-based capital ratio was 17.8% as of September 30, 2025, up from 13.9% at December 31, 2024, exceeding regulatory minimum guidelines[203] Loan and Credit Performance - Net loans increased by $14,179, or 0.5%, to $3,055,740 as of September 30, 2025, with significant growth in Residential Real Estate loans[158] - The loan to deposit ratio was 95.8% as of September 30, 2025, compared to 95.9% at December 31, 2024[158] - Provisions for credit losses totaled $2,792 for the first nine months of 2025, down from $4,668 in the same period of 2024[159] - Net charge-offs for the first nine months ended September 30, 2025 totaled $2,212, an increase from $1,080 for the same period in 2024, with a total of 45 loans and leases charged off[161] - The allowance for credit losses as a percentage of total loans was 1.30% at September 30, 2025, compared to 1.29% at December 31, 2024[163] Income and Expenses - Net income for the three months ended September 30, 2025 was $12,760, an increase of $4,394 from $8,366 for the same period in 2024[172] - Net interest income for the three months ended September 30, 2025 was $34,545, up $5,312 from $29,233 in the same period of 2024[173] - Total interest and dividend income increased to $55,240 for the three months ended September 30, 2025, a rise of $2,499 from $52,741 in 2024[174] - Total interest expense decreased by 12.0% to $20,695 for the three months ended September 30, 2025, compared to $23,508 for the same period in 2024[176] - Total noninterest expense for the three months ended September 30, 2025, was $28,327, a slight decrease of $68 or 0.2% from $28,395 in 2024[184] Market and Strategic Activities - The company entered into a merger agreement with The Farmers Savings Bank, which has total assets of $293 million and total deposits of $236 million[151] - The merger agreement includes a cash payment of $34.925 million and the issuance of 1,434,491 common shares, with an aggregate deal value of approximately $66.7 million[152] - An underwritten public offering raised approximately $75.7 million in net proceeds, which will support organic growth opportunities and future strategic transactions[155] - The company has received all required regulatory approvals for the merger, expected to close in November 2025, pending shareholder approval[153] Risk Management - The primary market risk exposure for the Company is interest-rate risk, which is managed through asset/liability management techniques[208] - The Company’s effective risk management practices are essential to maintaining interest-rate risk at prudent levels, ensuring safety and soundness[209] Portfolio Value and Asset Management - The net portfolio value increased from $603.2 million on December 31, 2024, to $720.1 million on September 30, 2025, representing a growth of 19.4%[217] - A 400 basis point increase in rates led to a net portfolio value of $783.9 million, an increase of 11.6% compared to the base scenario[217] - A 200 basis point decrease in rates resulted in a net portfolio value of $686.3 million, a decrease of 4.7%[217] - The company anticipates that projected movements in rates will lead to changes in market values, affecting both assets and liabilities[217] - The asset mix remains centered on loans and deposits, indicating a stable funding strategy[217]