Civista Bancshares, Inc. Announces Second Quarter 2019 Earnings

SANDUSKY, Ohio, July 26, 2019 /PRNewswire/ -- Civista Bancshares, Inc. CIVB ("Civista") reported net income available to common shareholders of $8.5 million, or $0.51 per diluted share, for the second quarter of 2019, compared with $2.7 million, or $0.24 per diluted share, for the prior year period.  For the six-month period ended June 30, 2019, Civista reported net income available to common shareholders of $18.0 million or $1.08 per diluted share, compared to $9.4 million or $0.79 per diluted share, in the same period of 2018. 

Factors Affecting Comparability

Civista acquired United Community Bancorp ("UCB") in September 2018.  The financial position and results of operations of UCB prior to its acquisition date are not included in the Company's financial results for periods prior to the acquisition date.

Adjusted Earnings

Financial results for the second quarter and six months ended June 30, 2018 included $3.2 million in pre-tax acquisition and integration expenses.  Excluding these expenses, adjusted earnings were $5.2 million, or $0.44 diluted earnings per share, for the second quarter of 2018 and $11.9 million, or $0.99 diluted earnings per share, for the six months ended June 30, 2018.

A reconciliation of adjusted earnings to net income according to accounting principles generally accepted in the United States ("GAAP") is provided in the financial tables at the end of this press release.

"I am proud of our second quarter, 2019 results.   Comparing 2019 to our adjusted earnings in 2018 diluted earnings per share increased 15.9% for the quarter and 9.1% year to date.  Our annualized loan growth was 6.5% for the quarter and 4.8% for the year.  We saw additional expansion of our net interest margin and continued strong asset quality," said Dennis G. Shaffer, President and CEO of Civista.

Results of Operations:

Net interest income increased $7.0 million, or 47.2% for the second quarter of 2019, and $13.9 million or 47.1% and for the six months ended June 30, compared to the same periods of 2018.  Interest income increased $8.8 million, or 54.2% for the second quarter of 2019 and $17.4 million or 54.3% for the six-month period ended June 30.  Average earning assets increased $558.9 million for the second quarter of 2019 and $536.9 million for the six-month period ended June 30.  The increase in average earning assets resulted in $6.7 million and $13.0 million of the increase in interest income, respectively.  Additionally, yields increased 54 basis points for the second quarter of 2019 and 60 basis points for the six-month period ended June 30th, accounting for $2.1 million and $4.4 million increase in interest income, respectively. 

Interest expense increased $1.8 million, or 128.4%, for the second quarter of 2019 and $3.5 million, or 137.6%, for the six-months ended June 30 compared to the same periods of 2018.  The increase in interest expense is due to both an increase in average balances of $410.4 million, resulting in $756 thousand of the increase for the second quarter of 2019, and $397.3 million, resulting in $1.5 million of the increase for the six-months ended June 30.  Additionally, cost of interest-bearing liabilities increased 35 basis points and 37 basis points, respectively.  The increase in yield accounted for $1.0 million and $2.0 million of the increase in interest expense. 

The tax equivalent net interest margin increased 28 basis points to 4.49% for the second quarter of 2019, compared to 4.21% for the same period a year ago and increased 34 basis points to 4.47% for the six months ended June 30, 2019, compared to 4.13% for the same period a year ago.  Accretion of the purchase accounting adjustments accounted for 25 basis points of the second quarter and 23 basis points of the year-to-date margin.

Average Balance Analysis

(Unaudited - Dollars in thousands except share data)



















Three Months Ended June 30,



2019



2018



Average



Yield/



Average



Yield/

Assets:

balance

Interest

rate *



balance

Interest

rate *

Interest-earning assets:















Loans **

$   1,583,533

$ 21,657

5.49%



$   1,158,956

$ 14,144

4.90%

Taxable securities

202,995

1,694

3.39%



145,435

1,040

2.85%

Non-taxable securities

171,004

1,408

4.39%



101,866

886

4.46%

Interest-bearing deposits in other banks

29,309

167

2.29%



21,696

90

1.66%

Total interest-earning assets

$   1,986,841

24,926

5.14%



$   1,427,953

16,160

4.60%

Noninterest-earning assets:















Cash and due from financial institutions

38,558







36,501





Premises and equipment, net

21,819







17,549





Accrued interest receivable

7,324







5,270





Intangible assets

85,865







28,351





Other assets

22,193







12,781





Bank owned life insurance

44,328







25,317





Less allowance for loan losses

(13,884)







(12,935)





      Total Assets

$   2,193,044







$   1,540,787





















Liabilities and Shareholders Equity:















Interest-bearing liabilities:















Demand and savings

$      858,781

$      721

0.34%



$      615,667

$      250

0.16%

Time

271,183

1,255

1.86%



140,622

320

0.91%

FHLB

138,271

831

2.41%



103,460

482

1.87%

Subordinated debentures

29,427

372

5.07%



29,427

338

4.61%

Repurchase Agreements

18,442

5

0.11%



16,546

4

0.10%

Total interest-bearing liabilities

$   1,316,104

3,184

0.97%



$      905,722

1,394

0.62%

Noninterest-bearing deposits

540,283







434,126





Other liabilities

21,219







12,609





Shareholders' Equity

315,438







188,330





Total Liabilities and Shareholders' Equity

$   2,193,044







$   1,540,787





















Net interest income and interest rate spread

$ 21,742

4.17%





$ 14,766

3.98%

















Net interest margin





4.49%







4.21%

















* - Interest yields are presented on an annualized basis and are calculated using a 21% tax-equivalent adjustment

** - Average balance includes nonaccrual loans

 

 

Average Balance Analysis

(Unaudited - Dollars in thousands except share data)



















Six Months Ended June 30,



2019



2018



Average



Yield/



Average



Yield/

Assets:

balance

Interest

rate *



balance

Interest

rate *

Interest-earning assets:















Loans  **

$   1,573,924

$ 42,619

5.46%



$   1,153,230

$ 27,783

4.86%

Taxable securities

205,285

3,442

3.41%



143,229

2,026

2.84%

Non-taxable securities

164,349

2,760

4.44%



101,673

1,764

4.49%

Interest-bearing deposits in other banks

58,541

689

2.37%



67,108

511

1.54%

Total interest-earning assets

$   2,002,099

49,510

5.08%



$   1,465,240

32,084

4.48%

Noninterest-earning assets:















Cash and due from financial institutions

65,567







64,211





Premises and equipment, net

21,872







17,641





Accrued interest receivable

6,931







4,860





Intangible assets

85,990







28,359





Other assets

22,394







12,968





Bank owned life insurance

43,987







25,247





Less allowance for loan losses

(13,885)







(13,037)





      Total Assets

$   2,234,955







$   1,605,489





















Liabilities and Shareholders Equity:















Interest-bearing liabilities:















Demand and savings

$      857,232

$   1,429

0.34%



$      615,940

$      502

0.16%

Time

270,847

2,438

1.82%



163,878

775

0.95%

FHLB

117,882

1,429

2.44%



71,727

634

1.78%

Subordinated debentures

29,427

744

5.10%



29,427

626

4.29%

Repurchase Agreements

20,309

10

0.10%



17,467

9

0.10%

Total interest-bearing liabilities

$   1,295,697

6,050

0.94%



$      898,439

2,546

0.57%

Noninterest-bearing deposits

610,265







506,002





Other liabilities

20,408







14,656





Shareholders' Equity

308,585







186,392





Total Liabilities and Shareholders' Equity

$   2,234,955







$   1,605,489





















Net interest income and interest rate spread

$ 43,460

4.14%





$ 29,538

3.91%

















Net interest margin





4.47%







4.13%

















* - Interest yields are presented on an annualized basis and are calculated using a 21% tax-equivalent adjustment

** - Average balance includes nonaccrual loans

No provision for loan losses was recorded during 2019 and 2018.  With low net charge offs, improved asset quality and strengthened problem loan coverage ratios, we felt comfortable with no provision so far in 2019, despite the loan growth.

For the second quarter of 2019, noninterest income totaled $5.1 million, an increase of $714 thousand, or 16.3%, compared to the prior year's second quarter.  Noninterest income for the first six-months of 2019 totaled $11.4 million, an increase of $1.4 million, or 13.8%, compared to the prior year's first six months.   

Noninterest income















(unaudited - dollars in thousands)

Three months ended June 30,



2019



2018



$ change



% change

Service charges

$    1,552



$    1,359



$       193



14.2%

Net gain on sale of securities

(23)



41



(64)



-156.1%

Net gain on sale of loans

555



474



81



17.1%

ATM/Interchange fees

951



588



363



61.7%

Wealth management fees

911



836



75



9.0%

Bank owned life insurance

252



144



108



75.0%

Tax refund processing fees

550



550



-



0.0%

Other

356



398



(42)



-10.6%

Total noninterest income

$    5,104



$    4,390



$       714



16.3%

















Noninterest income



(unaudited - dollars in thousands)





Six months ended June 30,



2019



2018



$ change



% change

Service charges

$    3,008



$    2,493



$       515



20.7%

Net gain on sale of securities

(17)



81



(98)



-121.0%

Net gain on sale of loans

886



807



79



9.8%

ATM/Interchange fees

1,857



1,142



715



62.6%

Wealth management fees

1,758



1,688



70



4.1%

Bank owned life insurance

499



286



213



74.5%

Tax refund processing fees

2,750



2,750



-



0.0%

Other

647



759



(112)



-14.8%

Total noninterest income

$  11,388



$  10,006



$    1,382



13.8%

Service charge fees increased $193 thousand, or 14.2%, and $515 thousand, or 20.7%, for the three and six-month periods ended June 30.  ATM/Interchange fees increased $363 thousand, or 61.7%, and $715 thousand, or 62.6%, for the three and six-month periods ended June 30.   Bank owned life insurance increased $108 thousand, or 75.0%, and $213 thousand, or 74.5%, for the three and six-month periods ended June 30.  The increases in service charge fee income, ATM/Interchange fees and bank owned life insurance income are primarily attributable to the Company's acquisition of UCB during the third quarter of 2018. 

For the second quarter of 2019, noninterest expense totaled $16.6 million, an increase of $711 thousand, or 4.5%, compared to the prior year's second quarter.  Noninterest expense for the first six-months of 2019 increased $5.0 million, or 17.6%, when compared to the first six-months of 2018.

Noninterest expense















(unaudited - dollars in thousands)

Three months ended

June 30,







2019



2018



$ change



% change

Compensation expense

$    9,548



$    7,385



$    2,163



29.3%

Net occupancy and equipment 

1,444



1,186



258



21.8%

Contracted data processing

447



2,739



(2,292)



-83.7%

Taxes and assessments

605



479



126



26.3%

Professional services

700



1,483



(783)



-52.8%

Amortization of intangible assets

235



26



209



803.8%

Marketing

367



320



47



14.7%

Other

3,293



2,310



983



42.6%

Total noninterest expense

$  16,639



$  15,928



$       711



4.5%

















Noninterest expense







(unaudited - dollars in thousands)









Six months ended

June 30,







2019



2018



$ change



% change

Compensation expense

$  19,353



$  14,759



$    4,594



31.1%

Net occupancy and equipment 

2,947



2,321



626



27.0%

Contracted data processing

866



3,087



(2,221)



-71.9%

Taxes and assessments

1,197



948



249



26.3%

Professional services

1,395



2,035



(640)



-31.4%

Amortization of intangible assets

475



59



416



705.1%

Marketing

707



638



69



10.8%

Other

6,148



4,286



1,862



43.4%

Total noninterest expense

$  33,088



$  28,133



$    4,955



17.6%

Compensation expense increased $2.2 million, or 29.3%, for the second quarter and $4.6 million, or 31.1%, for the six-month period ending June 30, 2019.  The increase in compensation expense is comprised of salaries of $1.6 million for the three months and $3.4 million for the six months, employee benefits of $593 thousand for the three months and $1.2 million for the six months ended June 30, 2019.  The increases are primarily due to the increased size of the company due to the UCB acquisition.  Year-to-date average FTE employees were 433.3 at June 30, 2019, an increase of 88.3 FTEs over 2018.  Net occupancy and equipment expense increased $258 thousand, or 21.8%, and $626, or 27.0%, for the three and six-month periods ended June 30, 2019, primarily due to the addition of 9 locations from the UCB acquisition.  Contracted data processing expenses decreased $2.3 million, or 83.7%, and $2.2 million, or 71.9%, for the three and six-month periods ended June 30, 2019, primarily due to expenses incurred for the data processing conversion of UCB in 2018 which totaled approximately $2.4 million.  Professional services costs decreased $783 thousand, or 52.8%, for the second quarter and $640 thousand, or 31.4%, for the six-month period ending June 30, 2019.  Both periods of 2018 included approximately $700 thousand of legal and consulting expenses related to the UCB acquisition.      

The efficiency ratio was 59.5% for the six months ended June 30, 2019, compared to 70.3% for the six months ended June 30, 2018.  The improvement in the efficiency ratio is due primarily to $3.2 million of pre-tax expenses related to the merger with UCB, as well as an increase in net interest income.  The merger expenses in the second quarter of 2018 accounted for 790 basis points of the change. 

Civista's effective income tax rate for the six months ended June 30, 2019 was 15.8% compared to 12.3% for the same period in 2018.  The effective income tax rate for second quarter 2019 was 15.1% compared to 6.6% in 2018.   The 2018 effective tax rate is skewed by expenses incurred related to the UCB acquisition. 

Balance Sheet

Total assets increased $64.0 million, or 3.0%, from December 31, 2018 to June 30, 2019, primarily due to an increase in the loan portfolio of $36.8 million.     

End of period loan balances















(unaudited - dollars in thousands)

















June 30,



December 31,











2019



2018



$ Change



% Change

Commercial and Agriculture

$           186,423



$           177,101



$       9,322



5.3%

Commercial Real Estate:















Owner Occupied

218,183



210,121



8,062



3.8%

Non-owner Occupied

530,570



523,598



6,972



1.3%

Residential Real Estate

466,581



457,850



8,731



1.9%

Real Estate Construction

144,448



135,195



9,253



6.8%

Farm Real Estate

36,116



38,513



(2,397)



-6.2%

Consumer and Other

16,449



19,563



(3,114)



-15.9%

Total Loans

$        1,598,770



$        1,561,941



$    36,829



2.4%

The $36.8 million, or 2.4%, increase in the loan portfolio from December 31, 2018 to June 30, 2019 is spread across the loan portfolio, with the exception of the Farm Real Estate and Consumer loan portfolios.    

Total deposits increased $52.8 million, or 3.3%, from December 31, 2018 to June 30, 2019.  The increase was due primarily to increases in demand deposits, both noninterest-bearing and interest-bearing.  A reduction of brokered deposits partially offset these increases. 

End of period deposit balances















(unaudited - dollars in thousands)

















June 30,



December 31,











2019



2018



$ Change



% Change

Noninterest-bearing demand

$             496,541



$             468,083



$      28,458



6.1%

Interest-bearing demand

305,086



261,996



43,090



16.4%

Savings and money market

562,823



562,882



(59)



0.0%

Time deposits

259,484



258,832



652



0.3%

Brokered deposits

8,786



28,100



(19,314)



-68.7%

Total Deposits

$         1,632,720



$         1,579,893



$      52,827



3.3%

The increase in noninterest-bearing demand is due to an increase in deposits from the tax refund processing program of $29.5 million.  Interest-bearing demand deposits increased due to a $41.4 million increase in public funds accounts.  Brokered deposits decreased $19.3 million and Federal Home Loan Bank advances decreased $17.3 million due to a shift in wholesale funding requirements.

Asset Quality

The Company recorded net recoveries of $107 thousand for the first half of 2019 compared to net charge-offs $267 thousand for the same period of 2018.    

Allowance for Loan Losses







(dollars in thousands)









June 30,



June 30,



2019



2018

Beginning of period

$         13,679



$         13,134

Charge-offs

(395)



(651)

Recoveries

502



384

Provision

-



-

End of period

$         13,786



$         12,867

The allowance for loan losses to loans was 0.86% at June 30, 2019 and 0.88% at December 31, 2018.  The non-performing assets to assets ratio decreased to 0.38% from 0.46% in 2018.  The allowance for loan losses to non-performing loans increased to 164.7% from 137.9% in 2018.   

Non-performing assets at June 30, 2019 were $8.4 million, a 15.6% decrease from December 31, 2018. Nonaccrual loans include $551 thousand and $1.0 million of purchased credit-impaired ("PCI") loans at June 30, 2019 and December 31, 2018, respectively.

Non-performing Assets







(dollars in thousands)

June 30,



December 31,



2019



2018

Non-accrual loans

$          5,682



$          6,898

Restructured loans

2,689



3,024

Total non-performing loans

8,371



9,922

Other Real Estate Owned

-



-

Total non-performing assets

$          8,371



$          9,922

Conference Call and Webcast

Civista Bancshares, Inc. will also host a conference call to discuss the Company's financial results for the second quarter of 2019 at 1:00 p.m. ET on Friday, July 26, 2019.  Interested parties can access the live webcast of the conference call through the Investor Relations section of the Company's website, www.civb.com.  Participants can also listen to the conference call by dialing 855-238-2712 and ask to be joined into the Civista Bancshares, Inc. Second Quarter 2019 Earnings call.  Please log in or dial in at least 10 minutes prior to the start time to ensure a connection.

An archive of the webcast will be available for one year on the Investor Relations section of the Company's website (www.civb.com).

Forward Looking Statements

This press release may contain forward-looking statements regarding the financial performance, business prospects, growth and operating strategies of Civista.  For these statements, Civista claims the protections of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.   Statements in this press release should be considered in conjunction with the other information available about Civista, including the information in the filings we make with the Securities and Exchange Commission.  Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance.  The forward-looking statements are based on management's expectations and are subject to a number of risks and uncertainties.  We have tried, wherever possible, to identify such statements by using words such as "anticipate," "estimate," "project," "intend," "plan," "believe," "will" and similar expressions in connection with any discussion of future operating or financial performance. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements.  Risks and uncertainties that could cause actual results to differ materially include risk factors relating to the banking industry and the other factors detailed from time to time in Civista' reports filed with the Securities and Exchange Commission, including those described in "Item 1A Risk Factors" of Part I of Civista's Annual Report on Form 10-K for the fiscal year ended December 31, 2018.  Undue reliance should not be placed on the forward-looking statements, which speak only as of the date hereof.  Civista does not undertake, and specifically disclaims any obligation, to update any forward-looking statement to reflect the events or circumstances after the date on which the forward-looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.

Civista Bancshares, Inc. is a $2.2 billion financial holding company headquartered in Sandusky, Ohio.  The Company's banking subsidiary, Civista Bank, operates 38 locations in Northern, Central and Southwestern Ohio, Southeastern Indiana and Northern Kentucky.  Civista Bancshares, Inc. may be accessed at www.civb.com.  The Company's common shares are traded on the NASDAQ Capital Market under the symbol "CIVB".  The Company's depositary shares, each representing a 1/40th ownership interest in a Series B Preferred Share, are traded on the NASDAQ Capital Market under the symbol "CIVBP".

Civista Bancshares, Inc.

Financial Highlights

(unaudited - dollars in thousands, except share amounts)



Consolidated Condensed Statement of Income



















Three Months Ended



Six Months Ended



June 30,



June 30,



2019



2018



2019



2018

















Interest income

24,926



16,160



49,510



32,084

Interest expense

3,184



1,394



6,050



2,546

Net interest income

21,742



14,766



43,460



29,538

Provision for loan losses

-



-



-



-

Net interest income after provision

21,742



14,766



43,460



29,538

Noninterest income

5,104



4,390



11,388



10,006

Noninterest expense

16,639



15,928



33,088



28,133

Income before taxes

10,207



3,228



21,760



11,411

Income tax expense

1,546



214



3,430



1,408

Net income

8,661



3,014



18,330



10,003

Preferred stock dividends 

164



299



328



602

Net income available 















to common shareholders

8,497



2,715



18,002



9,401

















Dividends per common share

$             0.11



$             0.07



$             0.20



$             0.14

















Earnings per common share,















basic

$             0.54



$             0.26



$             1.15



$             0.91

diluted

$             0.51



$             0.24



$             1.08



$             0.79

















Average shares outstanding,















basic

15,628,537



10,470,839



15,618,154



10,342,763

diluted

16,922,712



12,615,336



16,912,329



12,606,415

















Selected financial ratios:















Return on average assets

1.58%



0.78%



1.65%



1.26%

Return on average equity

11.01%



6.42%



11.98%



10.82%

Dividend payout ratio

19.85%



24.32%



17.04%



14.48%

Net interest margin (tax equivalent)

4.49%



4.21%



4.47%



4.13%

 

 

 

 Selected Balance Sheet Items 



(unaudited - dollars in thousands, except share amounts)











 June 30, 



 December 31, 



2019



2018











 (unaudited) 



 (unaudited) 

 Cash and due from financial institutions 

$                  49,839



$                  42,779

 Investment securities 

360,512



347,364

 Loans held for sale 

2,563



1,391

 Loans 

1,598,770



1,561,941

 Less allowance for loan losses 

13,786



13,679

 Net loans 

1,584,984



1,548,262

 Other securities 

20,280



21,021

 Premises and equipment, net 

21,720



22,021

 Goodwill and other intangibles 

85,706



86,203

 Bank owned life insurance 

44,491



43,037

 Other assets 

32,900



26,876

 Total assets 

$            2,202,995



$            2,138,954









 Total deposits 

$            1,632,720



$            1,579,893

 Federal Home Loan Bank advances 

176,300



193,600

 Securities sold under agreements to repurchase 

15,554



22,199

 Subordinated debentures 

29,427



29,427

 Accrued expenses and other liabilities 

24,782



14,937

 Total shareholders' equity 

324,212



298,898

 Total liabilities and shareholders' equity 

$            2,202,995



$            2,138,954









 Shares outstanding at period end 

15,663,059



15,603,499









 Book value per share 

$                    20.10



$                    18.56

 Equity to asset ratio 

14.72%



13.97%









Selected asset quality ratios:







Allowance for loan losses to total loans

0.86%



0.88%

Non-performing assets to total assets

0.38%



0.46%

Allowance for loan losses to non-performing loans

164.69%



137.87%









Non-performing asset analysis







Nonaccrual loans

$                    5,682



$                    6,898

Troubled debt restructurings

2,689



3,024

Other real estate owned

-



-

Total

$                    8,371



$                    9,922

 

 

 

Supplemental Financial Information

(Unaudited - Dollars in thousands except share data)























June 30,



March 31,



December 31,



September 30,



June 30,

End of Period Balances

2019



2019



2018



2018



2018





















Assets



















Cash and due from banks

$       49,839



$     164,094



$       42,779



$       64,754



$        41,156

Investment securities

360,512



351,006



347,364



318,112



231,013

Loans held for sale

2,563



1,444



1,391



4,025



4,058

Loans

1,598,770



1,573,193



1,561,941



1,515,644



1,180,032

Allowance for loan losses

(13,786)



(13,822)



(13,679)



(13,331)



(12,867)

Net Loans

1,584,984



1,559,371



1,548,262



1,502,313



1,167,165

Other securities

20,280



20,280



21,021



17,774



15,154

Premises and equipment, net

21,720



21,772



22,021



22,518



17,308

Goodwill and other intangibles

85,706



85,955



86,203



85,964



28,342

Bank owned life insurance

44,491



44,239



43,037



42,750



25,411

Other assets

32,900



29,541



26,876



27,325



18,700

Total Assets

$  2,202,995



$  2,277,702



$  2,138,954



$  2,085,535



$  1,548,307





















Liabilities



















Total deposits

$  1,632,720



$  1,765,801



$  1,579,893



$  1,577,755



$  1,146,172

Federal Home Loan Bank advances

176,300



127,100



193,600



145,100



156,200

Securities sold under agreement to repurchase

15,554



21,970



22,199



18,515



14,230

Subordinated debentures

29,427



29,427



29,427



29,427



29,427

Accrued expenses and other liabilities

24,782



21,347



14,937



25,350



12,430

Total liabilities

1,878,783



1,965,645



1,840,056



1,796,147



1,358,459





















Shareholders' Equity



















Preferred shares, Series B

9,364



9,364



9,364



10,878



13,250

Common shares

267,275



266,990



266,901



265,324



158,191

Accumulated earnings

56,199



49,421



41,320



35,302



39,898

Treasury shares

(17,235)



(17,235)



(17,235)



(17,235)



(17,235)

Accumulated other comprehensive income(loss)

8,609



3,517



(1,452)



(4,881)



(4,256)

Total shareholders' equity

324,212



312,057



298,898



289,388



189,848





















Total Liabilities and Shareholders' Equity

$  2,202,995



$  2,277,702



$  2,138,954



$  2,085,535



$  1,548,307





















Quarterly Average Balances



















Assets:



















Earning assets

$  1,986,841



$  2,017,523



$  1,907,966



$  1,534,039



$  1,427,953

Securities

373,999



365,219



352,412



252,832



247,301

Loans

1,583,533



1,564,208



1,532,012



1,256,680



1,158,956

Liabilities and Shareholders' Equity



















Total deposits

$  1,670,247



$  1,807,102



$  1,591,521



$  1,202,419



$  1,190,415

Interest-bearing deposits

1,129,964



1,126,173



1,120,876



816,773



756,289

Other interest-bearing liabilities

186,140



148,891



204,002



228,164



149,433

Total shareholders' equity

315,438



301,656



290,096



205,601



188,330

 

 

(Unaudited - Dollars in thousands except share data)























Three Months Ended



June 30,



March 31,



December 31,



September 30,



June 30,

Income statement

2019



2019



2018



2018



2018





















Total interest and dividend income

$         24,926



$         24,584



$         23,707



$         17,886



$         16,160

Total interest expense

3,184



2,865



2,962



2,062



1,394

Net interest income

21,742



21,719



20,745



15,824



14,766

Provision for loan losses

-



-



390



390



-

Noninterest income

5,104



6,284



4,838



3,288



4,390

Noninterest expense

16,639



16,449



16,391



22,156



15,928

Income (loss) before taxes

10,207



11,554



8,802



(3,434)



3,228

Income tax expense (benefit)

1,546



1,885



1,233



(1)



214

Net income (loss)

8,661



9,669



7,569



(3,433)



3,014

Preferred stock dividends

164



164



165



192



299

Net income (loss) available to 



















common shareholders

$            8,497



$            9,505



$            7,404



$          (3,625)



$            2,715





















Common shares dividend paid

$            1,719



$            1,404



$            1,386



$               971



$               719





















Per share data







































Basic earnings per common share

$              0.54



$              0.61



$              0.48



$            (0.31)



$              0.26

Diluted earnings per common share

0.51



0.57



0.45



(0.31)



0.24

Dividends per common share

0.11



0.09



0.09



0.09



0.07

Average common shares outstanding - basic

15,628,537



15,607,655



15,521,404



11,627,093



10,470,839

Average common shares outstanding - diluted

16,922,712



16,901,830



16,898,186



13,271,073



12,615,336





















Asset quality



















Allowance for loan losses, beginning of period

$         13,822



$         13,679



$         13,331



$         12,867



$         12,814

Charge-offs

(156)



(239)



(119)



(133)



(226)

Recoveries

120



382



77



207



279

Provision

-



-



390



390



-

Allowance for loan losses, end of period

$         13,786



$         13,822



$         13,679



$         13,331



$         12,867





















Ratios



















Allowance to total loans

0.86%



0.88%



0.88%



0.88%



1.09%

Allowance to nonperforming assets

164.69%



150.60%



137.87%



132.86%



168.36%

Allowance to nonperforming loans

164.69%



150.60%



137.87%



132.86%



168.36%





















Nonperforming assets



















Nonperforming loans

$            8,371



$            9,178



$            9,140



$         10,034



$            7,642

Other real estate owned

-



-



-



-



-

Total nonperforming assets

$            8,371



$            9,178



$            9,140



$         10,034



$            7,642





















Capital and liquidity



















Tier 1 leverage ratio

12.44%



11.64%



12.22%



15.37%



12.96%

Tier 1 risk-based capital ratio

15.94%



15.64%



15.30%



15.43%



15.71%

Total risk-based capital ratio

16.78%



16.48%



16.15%



16.29%



16.74%

Tangible common equity ratio (1)

10.89%



9.96%



9.98%



9.70%



9.80%





















(1) See reconciliation of GAAP measures below



































































































 

Non-GAAP Reconciliation

Tangible Common Equity and Tangible Assets

(Unaudited - Dollars in thousands except share data)























Three Months Ended



June 30,



March 31,



December 31,



September 30,



June 30,

Tangible Common Equity

2019



2019



2018



2018



2018





















Total Equity

$   324,212



$   312,057



$   298,898



$   289,388



$   189,848

Less: Preferred Equity

9,364



9,364



9,364



10,878



13,250

Less: Goodwill and intangible assets

84,065



84,299



84,540



84,286



27,572





















Tangible common equity

$   230,783



$   218,394



$   204,994



$   194,224



$   149,026





















Total Shares Outstanding

15,633,059



15,624,113



15,603,499



15,395,064



10,788,892





















Tangible book value per share

$       14.76



$       13.98



$       13.14



$       12.62



$       13.81





















Tangible Assets



















Total Assets

$2,202,995



$2,277,702



$2,138,954



$2,085,535



$1,548,307

Less: Goodwill and intangible assets

84,065



84,299



84,540



84,286



27,572





















Tangible assets

$2,118,930



$2,193,403



$2,054,414



$2,001,249



$1,520,735





















Tangible common equity ratio

10.89%



9.96%



9.98%



9.71%



9.80%

 

 

Reconciliation of Non-GAAP Financial Measures

(Unaudited - Dollars in thousands except share data)



















Three Months

Ended



Three Months

Ended



Six Months

Ended



Six Months

Ended



June 30,



June 30,



June 30,



June 30,

Adjusted earnings

2019



2018



2019



2018

















Income before taxes (GAAP)

10,207



3,228



21,760



11,411

Acquisition and integration expenses

-



3,150



-



3,150

Adjusted earnings, pretax

10,207



6,378



21,760



14,561

Adjusted income tax expense

1,546



876



3,430



2,070

Adjusted net income (Non-GAAP)

8,661



5,503



18,330



12,492

Preferred stock dividends

164



299



328



602

Adjusted net income available to 















common shareholders

$               8,497



$               5,204



$            18,002



$            11,890

















Adjusted earnings per common share - basic

$                 0.54



$                 0.50



$                 1.15



$                 1.15

Adjusted earnings per common share - diluted

0.51



0.44



1.08



0.99

Average common shares outstanding - basic

15,628,537



10,470,839



15,618,154



10,342,763

Average common shares outstanding - diluted

16,922,712



12,615,336



16,912,329



12,606,415

















Adjusted Efficiency ratio

































Six Months

Ended



Six Months

Ended











June 30,



June 30,











2019



2018

























Noninterest expense (GAAP)

33,088



28,133









Acquisition and integration expense

-



(3,150)









Adjusted noninterest expense

33,088



24,983

























Net interest income (GAAP)

43,460



29,538









Effect of tax-exempt income

741



470









Adjusted net interest income

44,201



30,008

























Noninterest Income - GAAP

11,388



10,006

























Adjusted total revenue

55,589



40,014

























Adjusted Efficiency ratio

59.5%



62.4%









 

 

 

Cision View original content:http://www.prnewswire.com/news-releases/civista-bancshares-inc-announces-second-quarter-2019-earnings-300891603.html

SOURCE Civista Bancshares, Inc.

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