Civista Bancshares(US:CIVB)2024-05-09 20:09Financial Position - Total assets increased by $18,840, or 0.5%, to $3,880,258 as of March 31, 2024, compared to $3,861,418 at December 31, 2023[209] - Total liabilities rose by $21,183, or 0.6%, to $3,510,599 as of March 31, 2024, primarily due to a $30,500 increase in short-term FHLB borrowings[209] - Total deposits as of March 31, 2024, were $2,980,695, a slight decrease of $4,333 or -0.1% from $2,985,028 at year-end 2023[222] - Shareholders' equity at March 31, 2024, was $369,659, or 9.5% of total assets, down from $372,002, or 9.6% of total assets, at December 31, 2023[227] - Total assets rose to $3,867.29 million in Q1 2024, compared to $3,660.87 million in Q1 2023, an increase of 5.7%[238] - Shareholders' equity increased to $370,452 thousand in Q1 2024, up from $341,159 thousand in Q1 2023, a growth of 8.3%[238] Loan Performance - Net loans increased by $34,722, or 1.2%, to $2,859,290 as of March 31, 2024, driven by growth in various loan categories[213] - Loans held for sale surged by $1,991, or 115.4%, totaling $3,716 as of March 31, 2024, compared to $1,725 at December 31, 2023[212] - Total loans increased to $2,898,139 thousand as of March 31, 2024, compared to $2,861,727 thousand as of December 31, 2023, reflecting a growth of approximately 1.3%[85] - Total Loans amounted to $2,898,139,000, with current-period charge-offs of $651,000[103] - Total past due loans reached $16,050 million, with $7,765 million past 30 days and $8,034 million past 90 days[117] - As of March 31, 2024, total nonaccrual loans reached $13,235 million, with $2,658 million related to loans with an allowance for credit losses[120] Income and Expenses - Net income for the three months ended March 31, 2024, was $6,360, a decrease of $6,528 or -50.7% from $12,888 for the same period in 2023[234] - Total interest and dividend income increased by $7,203 or 16.8% to $50,128 for the three months ended March 31, 2024, driven by an $8,086 increase in interest and fees on loans[235] - Net interest income decreased by $976 thousand to $28,372 thousand in Q1 2024, compared to $32,601 thousand in Q1 2023, a decline of 3.0%[241] - Noninterest income for Q1 2024 was $8,504 thousand, a decrease of $2,564 thousand or 23.2% from $11,068 thousand in Q1 2023[243] - Total noninterest expense rose to $27,689 million, a slight increase of 0.9% from $27,432 million in the previous year[20] Credit Losses - The allowance for credit losses as a percentage of total loans was 1.34% at March 31, 2024, up from 1.30% at December 31, 2023[218] - Provisions for credit losses totaled $1,992 for the first three months of 2024, compared to $821 during the same period in 2023[214] - Provision for credit losses increased to $2,042 thousand in Q1 2024, up from $620 thousand in Q1 2023, marking a rise of 227.4%[242] - The total allowance for credit losses increased to $38,849 thousand as of March 31, 2024, up from $37,160 thousand as of December 31, 2023, indicating a higher reserve requirement[89] Market Risk and Interest Rates - The primary market risk exposure is interest-rate risk, with effective risk management essential to maintain it at prudent levels[254] - The company's net portfolio value is sensitive to interest rate changes, with a hypothetical increase of 200 basis points resulting in a dollar change of $10,377, or 2%[263] - A 200 basis point increase in rates is projected to lead to a larger decrease in the market value of liabilities than assets, potentially increasing the net portfolio value[4] Securities and Investments - The available-for-sale security portfolio decreased by $12,023, from $618,272 at December 31, 2023, to $606,249 at March 31, 2024[219] - The total securities available-for-sale increased to $668,764 thousand as of March 31, 2024, from $606,249 thousand as of December 31, 2023, marking a growth of approximately 10.3%[81] - The fair value of U.S. Treasury securities and obligations of U.S. government agencies was $58,112 thousand with an unrealized loss of $(4,438) thousand as of March 31, 2024[81] Regulatory and Compliance - Total risk-based capital ratio was 14.5% as of March 31, 2024, compared to 14.4% at December 31, 2023, exceeding regulatory minimum guidelines[250] - The Company adopted Accounting Standards Update No. 2016-13 on January 1, 2023, which requires earlier recognition of credit losses[41] - The Company is currently evaluating the potential impacts of ASU 2023-07, effective for fiscal years beginning after December 15, 2023, which aims to improve segment reporting disclosures[66]