Civista Bancshares, Inc. Announces First Quarter 2024 Financial Results
SANDUSKY, Ohio, April 30, 2024 /PRNewswire/ -- Civista Bancshares, Inc. (NASDAQ:CIVB) ("Civista") announced its unaudited financial results for the three months ending March 31, 2024.
First quarter highlights
- Net income of $6.4 million, or $0.41 per diluted share, for the first quarter of 2024, compared to $12.9 million, or $0.82 per diluted share, for the first quarter of 2023.
- Low cost of deposits of 214 basis points and total funding costs of 254 basis points for the quarter.
- Based on the March 29, 2024 market close share price of $15.38, the $0.16 first quarter dividend is equivalent to an annualized yield of 4.16% and a dividend payout ratio of 42.11%.
"Although I was disappointed in our first quarter results, we knew there would be head winds as we exited the third-party payment tax refund business, and that we would not have the benefit of the $1.5 million one-time bonus from the prior year's renegotiation of our debit brand agreement. In late 2023, we implemented changes in the way we process overdrafts which reduced service charge income. As a result of these three items, we had approximately $3.8 million of noninterest income to replace from the previous year," said Dennis G. Shaffer, CEO and President of Civista.
Results of Operations:
For the three-month period ended March 31, 2024 and 2023
Net interest income decreased $4.2 million, or 13.0%, for the first quarter of 2024 compared to the same period of 2023, due to an increase in interest expense partially offset by an increase in interest income. Noninterest income also decreased, primarily due to the company's decision to step away from our income tax refund business for 2024.
Net interest margin decreased 77 basis points to 3.22% for the first quarter of 2024, compared to 3.99% for the same period a year ago.
The increase in interest income was due to increases in both yield and in asset volume. The 41 basis point increase in yield led to a $3.7 million increase in interest income, while the $239.3 million increase in average earning assets led to a $3.5 million increase in interest income. The increase in volume can be attributed to organic growth.
Interest expense increased $12.8 million, or 143.4%, for the first quarter of 2024, compared to the same period last year. The average rate paid on interest-bearing liabilities increased 140 basis points, which led to a $6.9 million increase in interest expense. Average interest-bearing liabilities increased $411.6 million, leading to a $4.5 million increase in interest expense. The increase in interest-bearing liabilities was primarily in time deposits. The increase in funding cost, as well as the shift in the funding mix, are driving the increase in interest.
Average Balance Analysis | ||||||||||||
(Unaudited - Dollars in thousands) | ||||||||||||
Three Months Ended March 31, | ||||||||||||
2024 | 2023 | |||||||||||
Average | Yield/ | Average | Yield/ | |||||||||
Assets: | balance | Interest | rate * | balance | Interest | rate * | ||||||
Interest-earning assets: | ||||||||||||
Loans ** | $ 2,880,031 | $ 44,485 | 6.20 % | $ 2,649,901 | $ 37,784 | 5.78 % | ||||||
Taxable securities | 350,815 | 2,934 | 3.00 % | 374,851 | 2,834 | 2.77 % | ||||||
Non-taxable securities | 295,388 | 2,375 | 3.85 % | 281,136 | 2,262 | 3.81 % | ||||||
Interest-bearing deposits in other banks | 26,318 | 334 | 5.09 % | 7,397 | 45 | 2.47 % | ||||||
Total interest-earning assets | $ 3,552,552 | 50,128 | 5.64 % | $ 3,313,285 | 42,925 | 5.23 % | ||||||
Noninterest-earning assets: | ||||||||||||
Cash and due from financial institutions | 29,599 | 54,136 | ||||||||||
Premises and equipment, net | 54,980 | 62,776 | ||||||||||
Accrued interest receivable | 12,724 | 10,655 | ||||||||||
Intangible assets | 134,872 | 135,554 | ||||||||||
Bank owned life insurance | 61,456 | 53,630 | ||||||||||
Other assets | 58,472 | 61,292 | ||||||||||
Less allowance for credit losses | (37,356) | (30,454) | ||||||||||
Total Assets | $ 3,867,299 | $ 3,660,874 | ||||||||||
Liabilities and Shareholders' Equity: | ||||||||||||
Interest-bearing liabilities: | ||||||||||||
Demand and savings | $ 1,383,225 | $ 3,986 | 1.16 % | $ 1,384,070 | $ 1,084 | 0.32 % | ||||||
Time | 902,442 | 12,001 | 5.33 % | 308,400 | 2,148 | 2.82 % | ||||||
Short-term FHLB advances | 328,687 | 4,515 | 5.51 % | 372,226 | 4,258 | 4.64 % | ||||||
Long-term FHLB advances | 2,275 | 13 | 2.29 % | 3,442 | 19 | 2.24 % | ||||||
Other borrowings | - | - | 0.00 % | 116,200 | 1,643 | 5.73 % | ||||||
Subordinated debentures | 103,957 | 1,241 | 4.79 % | 103,814 | 1,169 | 4.57 % | ||||||
Repurchase agreements | - | - | 0.00 % | 20,823 | 3 | 0.06 % | ||||||
Total interest-bearing liabilities | $ 2,720,586 | 21,756 | 3.21 % | $ 2,308,975 | 10,324 | 1.81 % | ||||||
Noninterest-bearing deposits | 712,483 | 961,886 | ||||||||||
Other liabilities | 63,778 | 48,854 | ||||||||||
Shareholders' equity | 370,452 | 341,159 | ||||||||||
Total Liabilities and Shareholders' Equity | $ 3,867,299 | $ 3,660,874 | ||||||||||
Net interest income and interest rate spread | $ 28,372 | 2.43 % | $ 32,601 | 3.42 % | ||||||||
Net interest margin | 3.22 % | 3.99 % | ||||||||||
* Average yields are presented on a tax equivalent basis. The tax equivalent effect associated with loans and | ||||||||||||
** Average balance includes nonaccrual loans | ||||||||||||
*** Average yield on investments were calculated by adjusting the average balances of taxable and nontaxable securities | ||||||||||||
Provision for credit losses for the first quarter of 2024 was $2.0 million compared to $620 thousand for the first quarter of 2023. Provision for unfunded commitments for the first quarter of 2024 was ($50) thousand compared to $201 thousand for the first quarter of 2023. The reserve ratio as of March 31, 2024 was 1.34%, up from 1.30% at December 31, 2023.
For the first quarter of 2024, noninterest income totaled $8.5 million, a decrease of $2.6 million, or 23.2%, compared to the prior year's first quarter.
Noninterest income | |||||||
(unaudited - dollars in thousands) | Three months ended March 31, | ||||||
2024 | 2023 | $ change | % change | ||||
Service charges | $ 1,440 | $ 1,773 | $ (333) | -18.8 % | |||
Net loss on sale of securities | - | - | - | 0.0 % | |||
Net gain (loss) on equity securities | (141) | (68) | (73) | -107.4 % | |||
Net gain on sale of loans | 863 | 631 | 232 | 36.8 % | |||
ATM/Interchange fees | 1,383 | 1,353 | 30 | 2.2 % | |||
Wealth management fees | 1,276 | 1,193 | 83 | 7.0 % | |||
Bank owned life insurance | 350 | 253 | 97 | 38.3 % | |||
Lease revenue and residual income | 1,674 | 2,046 | (372) | -18.2 % | |||
Tax refund processing fees | - | 1,900 | (1,900) | -100.0 % | |||
Swap fees | 57 | 61 | (4) | -6.6 % | |||
Other | 1,602 | 1,926 | (324) | -16.8 % | |||
Total noninterest income | $ 8,504 | $ 11,068 | $ (2,564) | -23.2 % | |||
Service charges decreased due to a $375 thousand decrease in overdraft fees. We have reduced our per instance charge and have eliminated charges for representment of items for payment.
The net gain on sale of loans and leases increased by $232 thousand compared to the same period last year. The sale of mortgage loans generated a $423 thousand gain on the sale of $20.2 million, an increase in the gain of $191 thousand and a $10.9 million increase in 2024 volume, compared to 2023. CLF generated a $440 thousand gain on the sale of $12.6 million in commercial loans and leases, an increase in the gain of $41 thousand and a $1.4 million increase in 2024 volume, compared to 2023.
Lease revenue and residual income decreased $372 thousand due to a decrease in operating lease activity.
Tax refund processing fee income is now zero as we exited our third-party processor that was in the tax refund processing business.
Other income decreased primarily as result of a $1.5 million nonrecurring fee collected in 2023 associated with the renewal of the company's contract with MasterCard.
For the first quarter of 2024, noninterest expense totaled $27.7 million, an increase of $257 thousand, or 0.9%, compared to the prior year's first quarter.
Noninterest expense | |||||||
(unaudited - dollars in thousands) | Three months ended March 31, | ||||||
2024 | 2023 | $ change | % change | ||||
Compensation expense | $ 15,457 | $ 15,105 | $ 352 | 2.3 % | |||
Net occupancy and equipment | 3,903 | 4,120 | (217) | -5.3 % | |||
Contracted data processing | 545 | 520 | 25 | 4.8 % | |||
Taxes and assessments | 969 | 774 | 195 | 25.2 % | |||
Professional services | 1,149 | 1,555 | (406) | -26.1 % | |||
Amortization of intangible assets | 391 | 398 | (7) | -1.8 % | |||
ATM/Interchange expense | 625 | 580 | 45 | 7.8 % | |||
Marketing | 479 | 505 | (26) | -5.1 % | |||
Software maintenance expense | 1,189 | 878 | 311 | 35.4 % | |||
Other | 2,982 | 2,997 | (15) | -0.5 % | |||
Total noninterest expense | $ 27,689 | $ 27,432 | $ 257 | 0.9 % | |||
Compensation expense increased primarily due to a $614 thousand increase in salary expense. Merit increases awarded in the second quarter of 2023. Employee insurance expense increased $222 thousand compared to the same period last year. Commission expense decreased $515 thousand compared to the same period last year.
The decrease in occupancy and equipment expense is primarily due to a decrease in equipment depreciation.
Taxes & assessments increased primarily due to an increase in the FDIC assessment rate charged.
Professional services decreased due to $400 thousand advisory fees for renegotiation of the company's MasterCard contract paid in 2023.
The increase in Software maintenance expense is primarily due to expense of our digital banking platform.
The efficiency ratio was 73.8% for the quarter ended March 31, 2024 compared to 62.0% for the quarter ended March 31, 2023. The change in the efficiency ratio is primarily due to a decrease in net interest income and a decrease in noninterest income.
Civista's effective income tax rate for the first quarter 2024 was 11.8% compared to 16.4% in 2023.
Balance Sheet
Total assets increased $18.8 million, or less than 1%, from December 31, 2023 to March 31, 2024, primarily due to an increase in the loan portfolio of $36.4 million, or 1.3%. The increase in loans was partially offset by a $10.1 million decrease in cash and a $10.8 million decrease in the securities portfolio.
End of period loan balances | |||||||
(unaudited - dollars in thousands) | |||||||
March 31, | December 31, | ||||||
2024 | 2023 | $ Change | % Change | ||||
Commercial and Agriculture | $ 302,663 | $ 304,793 | $ (2,130) | -0.7 % | |||
Commercial Real Estate: | |||||||
Owner Occupied | 367,419 | 377,322 | (9,903) | -2.6 % | |||
Non-owner Occupied | 1,185,688 | 1,161,893 | 23,795 | 2.0 % | |||
Residential Real Estate | 676,800 | 659,841 | 16,959 | 2.6 % | |||
Real Estate Construction | 267,737 | 260,409 | 7,328 | 2.8 % | |||
Farm Real Estate | 24,908 | 24,771 | 137 | 0.6 % | |||
Lease financing receivable | 56,680 | 54,642 | 2,038 | 3.7 % | |||
Consumer and Other | 16,244 | 18,056 | (1,812) | -10.0 % | |||
Total Loans | $ 2,898,139 | $ 2,861,727 | $ 36,412 | 1.3 % | |||
Loan and lease balances increased $36.4 million, or 1.3% since December 31, 2023. Growth was tempered in the first quarter with a diligent focus on rate and margin. Commercial Real Estate continued to grow due to consistent demand in the Non-owner Occupied category, especially in the multi-family area in the major Ohio metropolitan areas. Real Estate Construction has increased with consistent demand for more projects across the state of Ohio. The undrawn construction availability continues to be near all-time highs. Residential Real Estate has grown primarily due to more home construction loans and continued new production in our Community Reinvestment Act ("CRA") product.
Deposits
Total deposits decreased $4.3 million, or less than 1.0%, from December 31, 2023 to March 31, 2024.
End of period deposit balances | |||||||
(unaudited - dollars in thousands) | |||||||
March 31, | December 31, | ||||||
2024 | 2023 | $ Change | % Change | ||||
Noninterest-bearing demand | $ 707,993 | $ 771,699 | $ (63,706) | -8.3 % | |||
Interest-bearing demand | 434,692 | 449,449 | (14,757) | -3.3 % | |||
Savings and money market | 929,126 | 863,067 | 66,059 | 7.7 % | |||
Time deposits | 908,884 | 900,813 | 8,071 | 0.9 % | |||
Total Deposits | $ 2,980,695 | $ 2,985,028 | $ (4,333) | -0.1 % | |||
The $63.7 million decrease in noninterest-bearing demand was primarily due to a $51.7 million decrease in noninterest-bearing business accounts and $19.5 million noninterest-bearing accounts related to the former tax refund processing program.
The $14.8 million decrease in interest-bearing demand deposits was primarily due to an $11.6 million decrease in interest-bearing personal accounts, a $7.5 million decrease in Jumbo NOW accounts and a $5.2 million decrease in interest-bearing business accounts, partially offset by a $13.6 million increase in interest-bearing public fund accounts.
The $66.1 million increase in savings and money market was primarily due to a $65.9 million increase in brokered money market accounts, a $9.5 million increase in business money market accounts, partially offset by a $6.4 million decrease in statement savings and a $3.1 million decrease in business savings accounts.
The increase in time certificates was primarily due to a $16.7 million increase in Jumbo time certificates, a $14.0 million increase in retail time certificates, partially offset by a $21.8 million decrease in brokered time deposits.
FHLB overnight advances totaled $368.5 million on March 31, 2024, up from $340.4 million on December 31, 2023. FHLB term advances totaled $2.2 million on March 31, 2024, down from $2.4 million on December 31, 2023.
Stock Repurchase Program
So far in 2024, Civista has not repurchased any shares. We have approximately $12.0 million remaining of the current $13.5 million repurchase authorization, which will expire in May 2024. In January, Civista liquidated 8,262 shares held by employees, at $18.38 per share, to satisfy tax obligations stemming from vesting of restricted shares.
Shareholders' Equity
Total shareholders' equity decreased $2.3 million from December 31, 2023 to March 31, 2024, primarily due to an $6.2 million increase in accumulated other comprehensive loss. Retained earnings increased $3.9 million.
Asset Quality
Civista recorded net charge-offs of $353 thousand for the three months of 2024 compared to net charge-offs of $128 thousand for the same period of 2023. The allowance for credit losses to loans was 1.34% at March 31, 2024 and 1.30% at December 31, 2023.
Allowance for Credit Losses | ||||||
(dollars in thousands) | ||||||
March 31, | March 31, | |||||
2024 | 2023 | |||||
Beginning of period | $ 37,160 | $ 28,511 | ||||
CECL adoption adjustments | - | 5,193 | ||||
Charge-offs | (651) | (175) | ||||
Recoveries | 298 | 47 | ||||
Provision | 2,042 | 620 | ||||
End of period | $ 38,849 | $ 34,196 | ||||
Allowance for Unfunded Commitments | ||||||
(dollars in thousands) | ||||||
March 31, | March 31, | |||||
2024 | 2023 | |||||
Beginning of period | $ 3,901 | $ - | ||||
CECL adoption adjustments | - | 3,386 | ||||
Charge-offs | - | - | ||||
Recoveries | - | - | ||||
Provision | (50) | 201 | ||||
End of period | $ 3,851 | $ 3,587 | ||||
Non-performing assets at March 31, 2024 were $15.7 million, a 4.0% increase from December 31, 2023. The non-performing assets to assets ratio decreased to 0.41% from 0.39% at December 31, 2023. The allowance for credit losses to non-performing loans increased to 247.06% from 245.67% at December 31, 2023.
Non-performing Assets | ||||||||
(dollars in thousands) | March 31, | December 31, | ||||||
2024 | 2023 | |||||||
Non-accrual loans | $ 13,235 | $ 12,467 | ||||||
Restructured loans | 2,490 | 2,659 | ||||||
Total non-performing loans | 15,725 | 15,126 | ||||||
Other Real Estate Owned | - | - | ||||||
Total non-performing assets | $ 15,725 | $ 15,126 | ||||||
Conference Call and Webcast
Civista Bancshares, Inc. will also host a conference call to discuss the Company's financial results for the first quarter of 2024 at 1:00 p.m. ET on Tuesday, April 30, 2024. 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 800-836-8184 and ask to join the Civista Bancshares, Inc. first quarter 2024 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's 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, 2023, and any additional risks identified in the Company's subsequent Form 10-Q's. 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 $3.9 billion financial holding company headquartered in Sandusky, Ohio. Its primary subsidiary, Civista Bank, was founded in 1884 and provides full-service banking, commercial lending, mortgage, and wealth management services. Today, Civista Bank operates 43 locations across Ohio, Southeastern Indiana and Northern Kentucky. Civista Leasing & Finance, a division of Civista Bank, offers commercial equipment leasing services for businesses nationwide. Civista Bancshares' common shares are traded on the NASDAQ Capital Market under the symbol "CIVB". Learn more at www.civb.com.
Civista Bancshares, Inc.
Financial Highlights
(Unaudited, dollars in thousands, except share and per share amounts)
Consolidated Condensed Statement of Income | ||||
Three Months Ended | ||||
March 31, | ||||
2024 | 2023 | |||
Interest income | $ 50,128 | $ 41,539 | ||
Interest expense | 21,756 | 8,938 | ||
Net interest income | 28,372 | 32,601 | ||
Provision for credit losses | 1,992 | 821 | ||
Net interest income after provision | 26,380 | 31,780 | ||
Noninterest income | 8,504 | 11,068 | ||
Noninterest expense | 27,689 | 27,432 | ||
Income before taxes | 7,195 | 15,416 | ||
Income tax expense | 835 | 2,528 | ||
Net income | $ 6,360 | $ 12,888 | ||
Dividends paid per common share | $ 0.16 | $ 0.14 | ||
Earnings per common share, | ||||
basic and diluted | $ 0.41 | $ 0.82 | ||
Average shares outstanding, | ||||
basic and diluted | 15,695,963 | 15,732,092 | ||
Selected financial ratios: | ||||
Return on average assets (annualized) | 0.66 % | 1.47 % | ||
Return on average equity (annualized) | 6.89 % | 15.32 % | ||
Dividend payout ratio | 39.02 % | 17.07 % | ||
Net interest margin (tax equivalent) | 3.22 % | 4.11 % | ||
Selected Balance Sheet Items | |||
(Dollars in thousands, except share and per share amounts) | |||
March 31, | December 31, | ||
2024 | 2023 | ||
(unaudited) | (unaudited) | ||
Cash and due from financial institutions | $ 50,310 | $ 60,406 | |
Investment in time deposits | 1,450 | 1,225 | |
Investment securities | 608,277 | 620,441 | |
Loans held for sale | 3,716 | 1,725 | |
Loans | 2,898,139 | 2,861,728 | |
Less: allowance for credit losses | (38,849) | (37,160) | |
Net loans | 2,859,290 | 2,824,568 | |
Other securities | 31,360 | 29,998 | |
Premises and equipment, net | 54,280 | 56,769 | |
Goodwill and other intangibles | 134,618 | 135,028 | |
Bank owned life insurance | 61,685 | 61,335 | |
Other assets | 75,272 | 69,923 | |
Total assets | $ 3,880,258 | $ 3,861,418 | |
Total deposits | $ 2,980,695 | $ 2,985,028 | |
Federal Home Loan Bank advances - short term | 368,500 | 338,000 | |
Federal Home Loan Bank advances - long term | 2,211 | 2,392 | |
Securities sold under agreements to repurchase | - | - | |
Subordinated debentures | 103,984 | 103,943 | |
Other borrowings | 8,105 | 9,859 | |
Tax refunds in process | - | 2,885 | |
Accrued expenses and other liabilities | 47,104 | 47,309 | |
Total shareholders' equity | 369,659 | 372,002 | |
Total liabilities and shareholders' equity | $ 3,880,258 | $ 3,861,418 | |
Shares outstanding at period end | 15,727,013 | 15,695,424 | |
Book value per share | $ 23.50 | $ 23.70 | |
Equity to asset ratio | 9.53 % | 9.63 % | |
Selected asset quality ratios: | |||
Allowance for credit losses to total loans | 1.34 % | 1.30 % | |
Non-performing assets to total assets | 0.41 % | 0.39 % | |
Allowance for credit losses to non-performing loans | 247.06 % | 245.67 % | |
Non-performing asset analysis | |||
Nonaccrual loans | $ 13,235 | $ 12,467 | |
Troubled debt restructurings | 2,490 | 2,659 | |
Other real estate owned | - | - | |
Total | $ 15,725 | $ 15,126 | |
Supplemental Financial Information | |||||||||
(Unaudited - dollars in thousands except share data) | |||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||
End of Period Balances | 2024 | 2023 | 2023 | 2023 | 2023 | ||||
Assets | |||||||||
Cash and due from banks | $ 50,310 | $ 60,406 | $ 50,316 | $ 41,354 | $ 52,723 | ||||
Investment in time deposits | 1,450 | 1,225 | 1,472 | 1,719 | 1,721 | ||||
Investment securities | 608,277 | 620,441 | 595,508 | 619,250 | 629,829 | ||||
Loans held for sale | 3,716 | 1,725 | 1,589 | 3,014 | 1,465 | ||||
Loans and leases | 2,898,139 | 2,861,728 | 2,759,771 | 2,728,390 | 2,681,180 | ||||
Allowance for credit losses | (38,849) | (37,160) | (35,280) | (35,149) | (34,196) | ||||
Net Loans | 2,859,290 | 2,824,568 | 2,724,491 | 2,693,241 | 2,646,984 | ||||
Other securities | 31,360 | 29,998 | 34,224 | 28,449 | 35,383 | ||||
Premises and equipment, net | 54,280 | 56,769 | 58,989 | 60,899 | 61,895 | ||||
Goodwill and other intangibles | 134,618 | 135,028 | 134,998 | 135,406 | 135,808 | ||||
Bank owned life insurance | 61,685 | 61,335 | 54,053 | 53,787 | 53,796 | ||||
Other assets | 75,272 | 69,923 | 82,157 | 70,971 | 66,068 | ||||
Total Assets | $ 3,880,258 | $ 3,861,418 | $ 3,737,797 | $ 3,708,090 | $ 3,685,672 | ||||
Liabilities | |||||||||
Total deposits | $ 2,980,695 | $ 2,985,028 | $ 2,795,743 | $ 2,942,774 | $ 2,843,516 | ||||
Federal Home Loan Bank advances - short term | 368,500 | 338,000 | 431,500 | 142,000 | 212,000 | ||||
Federal Home Loan Bank advances - long term | 2,211 | 2,392 | 2,573 | 2,859 | 3,361 | ||||
Securities sold under agreement to repurchase | - | - | - | 6,788 | 15,631 | ||||
Subordinated debentures | 103,984 | 103,943 | 103,921 | 103,880 | 103,841 | ||||
Other borrowings | 8,105 | 9,859 | 10,964 | 12,568 | 13,938 | ||||
Secured borrowings | - | - | 4,881 | 92,110 | 101,114 | ||||
Securities purchased payable | - | - | 1,755 | - | - | ||||
Tax refunds in process | - | 2,885 | 493 | 7,208 | 5,752 | ||||
Accrued expenses and other liabilities | 47,104 | 47,309 | 53,222 | 48,027 | 38,822 | ||||
Total liabilities | 3,510,599 | 3,489,416 | 3,405,052 | 3,358,214 | 3,337,975 | ||||
Shareholders' Equity | |||||||||
Common shares | 311,352 | 311,166 | 310,975 | 310,784 | 310,412 | ||||
Retained earnings | 187,638 | 183,788 | 176,644 | 168,777 | 161,110 | ||||
Treasury shares | (75,574) | (75,422) | (75,412) | (73,915) | (73,915) | ||||
Accumulated other comprehensive loss | (53,757) | (47,530) | (79,462) | (55,770) | (49,910) | ||||
Total shareholders' equity | 369,659 | 372,002 | 332,745 | 349,876 | 347,697 | ||||
Total Liabilities and Shareholders' Equity | $ 3,880,258 | $ 3,861,418 | $ 3,737,797 | $ 3,708,090 | $ 3,685,672 | ||||
Quarterly Average Balances | |||||||||
Assets: | |||||||||
Earning assets | $ 3,552,552 | $ 3,449,344 | $ 3,443,226 | $ 3,354,967 | $ 3,313,285 | ||||
Securities | 646,203 | 645,202 | 645,202 | 658,515 | 655,987 | ||||
Loans | 2,880,031 | 2,805,995 | 2,742,736 | 2,689,515 | 2,649,901 | ||||
Liabilities and Shareholders' Equity | |||||||||
Total deposits | $ 2,998,150 | $ 2,977,802 | $ 2,946,849 | $ 2,817,712 | $ 2,654,356 | ||||
Interest-bearing deposits | 2,285,667 | 2,163,160 | 1,966,014 | 1,912,955 | 1,692,470 | ||||
Other interest-bearing liabilities | 431,919 | 383,877 | 178,614 | 471,837 | 616,505 | ||||
Total shareholders' equity | 370,452 | 337,866 | 348,209 | 347,647 | 341,159 | ||||
Supplemental Financial Information | |||||||||
(Unaudited - dollars in thousands except share data) | |||||||||
Three Months Ended | |||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||
Income statement | 2024 | 2023 | 2023 | 2023 | 2023 | ||||
Total interest and dividend income | $ 50,128 | $ 48,599 | $ 46,601 | $ 44,609 | $ 42,925 | ||||
Total interest expense | 21,756 | 18,547 | 15,097 | 13,270 | 10,324 | ||||
Net interest income | 28,372 | 30,052 | 31,504 | 31,339 | 32,601 | ||||
Provision for credit losses | 1,992 | 2,245 | 760 | 1,125 | 821 | ||||
Noninterest income | 8,504 | 8,823 | 8,125 | 9,149 | 11,068 | ||||
Noninterest expense | 27,689 | 25,393 | 26,622 | 27,649 | 27,432 | ||||
Income before taxes | 7,195 | 11,237 | 12,247 | 11,714 | 15,416 | ||||
Income tax expense | 835 | 1,582 | 1,860 | 1,680 | 2,528 | ||||
Net income | $ 6,360 | $ 9,655 | $ 10,387 | $ 10,034 | $ 12,888 | ||||
Per share data | |||||||||
Earnings per common share | |||||||||
Basic | |||||||||
Net income | $ 6,360 | $ 9,655 | $ 10,387 | $ 10,034 | $ 12,888 | ||||
Less allocation of earnings and | |||||||||
dividends to participating securities | 227 | 362 | 389 | 374 | 453 | ||||
Net income available to common | |||||||||
shareholders - basic | $ 6,133 | $ 9,293 | $ 9,998 | $ 9,660 | $ 12,435 | ||||
Weighted average common shares outstanding | 15,695,963 | 15,695,978 | 15,735,007 | 15,775,812 | 15,732,092 | ||||
Less average participating securities | 561,344 | 588,625 | 588,715 | 588,715 | 552,882 | ||||
Weighted average number of shares outstanding | |||||||||
used to calculate basic earnings per share | 15,134,619 | 15,107,353 | 15,146,292 | 15,187,097 | 15,179,210 | ||||
Earnings per common share | |||||||||
Basic | $ 0.41 | $ 0.62 | $ 0.66 | $ 0.64 | $ 0.82 | ||||
Diluted | $ 0.41 | 0.62 | 0.66 | 0.64 | 0.82 | ||||
Common shares dividend paid | $ 2,510 | $ 2,511 | $ 2,521 | $ 2,367 | $ 2,201 | ||||
Dividends paid per common share | 0.16 | 0.16 | 0.16 | 0.15 | 0.14 | ||||
Supplemental Financial Information | |||||||||
(Unaudited - dollars in thousands except share data) | |||||||||
Three Months Ended | |||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||
Asset quality | 2024 | 2023 | 2023 | 2023 | 2023 | ||||
Allowance for credit losses: | |||||||||
Beginning of period | $ 37,160 | $ 35,280 | $ 35,251 | $ 34,196 | $ 28,511 | ||||
CECL adoption adjustments | - | - | - | - | 5,193 | ||||
Charge-offs | (651) | (577) | (666) | (14) | (175) | ||||
Recoveries | 298 | 132 | 65 | 208 | 47 | ||||
Provision | 2,042 | 2,325 | 630 | 861 | 620 | ||||
End of period | $ 38,849 | $ 37,160 | $ 35,280 | $ 35,251 | $ 34,196 | ||||
Allowance for unfunded commitments: | |||||||||
Beginning of period | $ 3,901 | $ 3,981 | $ 3,851 | $ 3,587 | $ - | ||||
CECL adoption adjustments | - | - | - | - | 3,386 | ||||
Charge-offs | - | - | - | - | - | ||||
Recoveries | - | - | - | - | - | ||||
Provision | (50) | (80) | 130 | 264 | 201 | ||||
End of period | $ 3,851 | $ 3,901 | $ 3,981 | $ 3,851 | $ 3,587 | ||||
Ratios | |||||||||
Allowance to total loans | 1.34 % | 1.30 % | 1.28 % | 1.29 % | 1.28 % | ||||
Allowance to nonperforming assets | 247.06 % | 245.66 % | 308.52 % | 327.05 % | 345.91 % | ||||
Allowance to nonperforming loans | 247.06 % | 245.66 % | 308.52 % | 327.05 % | 345.82 % | ||||
Nonperforming assets | |||||||||
Nonperforming loans | $ 15,725 | $ 15,126 | $ 11,435 | $ 10,747 | $ 9,860 | ||||
Other real estate owned | - | - | - | - | 26 | ||||
Total nonperforming assets | $ 15,725 | $ 15,126 | $ 11,435 | $ 10,747 | $ 9,886 | ||||
Capital and liquidity | |||||||||
Tier 1 leverage ratio | 8.62 % | 8.75 % | 8.73 % | 8.69 % | 8.42 % | ||||
Tier 1 risk-based capital ratio | 10.81 % | 10.72 % | 10.82 % | 10.71 % | 10.50 % | ||||
Total risk-based capital ratio | 14.53 % | 14.45 % | 14.60 % | 14.49 % | 14.31 % | ||||
Tangible common equity ratio (1) | 6.28 % | 6.36 % | 5.49 % | 6.00 % | 5.96 % | ||||
(1) See reconciliation of non-GAAP measures at the end of this press release. | |||||||||
Reconciliation of Non-GAAP Financial Measures | |||||||||
(Unaudited - dollars in thousands except share data) | |||||||||
Three Months Ended | |||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||
2024 | 2023 | 2023 | 2023 | 2023 | |||||
Tangible Common Equity | |||||||||
Total Shareholder's Equity - GAAP | $ 369,659 | $ 372,002 | $ 332,745 | $ 349,876 | $ 347,697 | ||||
Less: Goodwill and intangible assets | 134,618 | 135,028 | 134,998 | 135,406 | 135,808 | ||||
Tangible common equity (Non-GAAP) | $ 235,041 | $ 236,974 | $ 197,747 | $ 214,470 | $ 211,889 | ||||
Total Shares Outstanding | 15,727,013 | 15,695,424 | 15,695,997 | 15,780,227 | 15,732,092 | ||||
Tangible book value per share | $ 14.95 | $ 15.10 | $ 12.60 | $ 13.59 | $ 13.47 | ||||
Tangible Assets | |||||||||
Total Assets - GAAP | $ 3,880,258 | $ 3,861,418 | $ 3,737,797 | $ 3,708,090 | $ 3,688,232 | ||||
Less: Goodwill and intangible assets | 134,618 | 135,028 | 134,998 | 135,406 | 135,808 | ||||
Tangible assets (Non-GAAP) | $ 3,745,640 | $ 3,726,390 | $ 3,602,799 | $ 3,572,684 | $ 3,552,424 | ||||
Tangible common equity to tangible assets | 6.28 % | 6.36 % | 5.49 % | 6.00 % | 5.96 % | ||||
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SOURCE Civista Bancshares, Inc.
