SANDUSKY, Ohio, Feb. 7, 2020 /PRNewswire/ -- Civista Bancshares, Inc. (NASDAQ: CIVB) ("Civista") reported net income available to common shareholders of $7.7 million, or $0.47 per diluted share, for the fourth quarter of 2019, compared to $7.4 million, or $0.45 per diluted share, for the fourth quarter of 2018. 

For the year ended December 31, 2019, Civista reported net income available to common shareholders of $33.2 million, or $2.01 per diluted share, compared to $13.2 million, or $1.02 per diluted share, in 2018.  This represents the highest annual net income and diluted earnings per share in Civista's history.

"I am very proud of the results that our team put together for 2019 for our customers and our shareholders.  In addition to record earnings, we increased loans 9.4%, deposits 6.3% and our overall asset growth was 8.0% all while maintaining very strong asset quality.  During the fourth quarter, we opened a full-service branch in Beachwood, Ohio which is on the east-side of Cleveland. We have had a very successful loan production office in the area for a few years.  This full-service office will allow us to serve all of the needs of our current and prospective customers in the Cleveland area.  Finally, the measure that means a lot to our investors, the total return on our stock, for 2019 was 43%," said Dennis G. Shaffer, President and CEO of Civista.

Adjusted Earnings

Financial results for the fourth quarter and year ended December 31, 2018 included $782 thousand and $12.7 million respectively, in acquisition and integration expenses, as well as a loss on sale of securities of $413 thousand.  Excluding these items, adjusted earnings were $8.1 million, or $0.49 diluted earnings per share, for the fourth quarter of 2018 and $24.7 million, or $1.85 diluted earnings per share, for the year ended December 31, 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.

Results of Operations:

Net interest income increased $477 thousand, or 2.3%, for the fourth quarter of 2019 and $19.0 million, or 28.7%, for the year ended December 31, compared to the same periods of 2018.

Interest income increased $814 thousand, or 3.4%, for the fourth quarter of 2019 and $24.4 million or 33.1% for the year ended December 31.  The increase in interest income included accretion income of $619 thousand and $2.5 million for the fourth quarter and year ended December 31, 2019.  The accretion included in interest income for the fourth quarter and year ended December 31, 2018 was $806 thousand.  Interest income further increased for both periods due to an increase in average earning assets.  While year-to-date yields increased, the fourth quarter yields decreased 18 basis points across all asset categories. 

Interest expense increased $337 thousand, or 11.4 %, for the fourth quarter of 2019 and $5.4 million, or 71.1%, for the year ended December 31, compared to 2018.  The increase in interest expense for both periods is due to an increase in average balances and an increase in the cost of interest-bearing liabilities. 

The net interest margin for the fourth quarter of 2019 decreased 20 basis points to 4.18% compared to 4.38% for the same period a year ago.  The net interest margin for the year ended 2019 increased 10 basis points to 4.31% compared to 4.21% for 2018. 

The 2019 net interest margin included accretion income of 14 basis points and 15 basis points for the fourth quarter and year to date, respectively.  The 2018 net interest margin included accretion income of 22 basis points and 6 basis points for the fourth quarter and year to date, respectively.

Mr. Shaffer continued, "The interest rate environment was very interesting in 2019.  After a rate increase in December of 2018, we experienced three rate decreases in 2019.  With the volatility in rates we experienced, I am pleased with where we have ended 2019."

Average Balance Analysis


(Unaudited - Dollars in thousands)
















Three Months Ended December 31,



2019


2018



Average




Yield/


Average




Yield/


Assets:

balance


Interest


rate *


balance


Interest


rate *


Interest-earning assets:













Loans **

$   1,676,769


$ 21,577


5.11%


$   1,532,012


$ 20,580


5.33%


Taxable securities

190,898


1,429


3.05%


205,200


1,702


3.27%


Non-taxable securities

181,741


1,439


4.27%


147,212


1,304


4.44%


Interest-bearing deposits in other banks

20,767


76


1.45%


23,542


121


2.04%


Total interest-earning assets

$   2,070,175


24,521


4.82%


$   1,907,966


23,707


5.00%


Noninterest-earning assets:













Cash and due from financial institutions

29,473






27,187






Premises and equipment, net

22,248






22,635






Accrued interest receivable

7,559






7,189






Intangible assets

85,388






85,895






Other assets

25,829






22,903






Bank owned life insurance

44,841






42,818






Less allowance for loan losses

(14,245)






(13,459)






      Total Assets

$   2,271,268






$   2,103,134



















Liabilities and Shareholders Equity:













Interest-bearing liabilities:













Demand and savings

$      890,825


$      712


0.32%


$      854,303


$      623


0.29%


Time

269,674


1,382


2.03%


266,573


1,075


1.60%


FHLB advances

205,040


871


1.69%


153,920


911


2.35%


Federal funds purchased

543


1


0.73%


462


3


2.58%


Subordinated debentures

29,427


329


4.44%


29,427


345


4.65%


Repurchase Agreements

17,898


4


0.09%


20,193


5


0.10%


Total interest-bearing liabilities

$   1,413,407


3,299


0.93%


$   1,324,878


2,962


0.89%


Noninterest-bearing deposits

500,953






470,645






Other liabilities

27,274






17,515






Shareholders' Equity

329,634






290,096






Total Liabilities and Shareholders' Equity

$   2,271,268






$   2,103,134



















Net interest income and interest rate spread


$ 21,222


3.89%




$ 20,745


4.11%















Net interest margin





4.18%






4.38%















* - Average yields are presented on a tax equivalent basis. The tax equivalent effect associated with loans and investments, included in the yields above, was $386 thousand and 350 thousand for the periods ended December 31, 2019 and 2018, respectively.  See reconciliation of non-GAAP measures at the end of this press release.



















** - Average balance includes nonaccrual loans






 


Average Balance Analysis



(Unaudited - Dollars in thousands)






Twelve Months Ended December 31,



2019


2018



Average




Yield/


Average




Yield/


Assets:

balance


Interest


rate *


balance


Interest


rate *


Interest-earning assets:













Loans **

$   1,612,975


$ 84,972


5.27%


$   1,274,779


$ 64,196


5.04%


Taxable securities

200,074


6,584


3.35%


159,451


4,770


2.97%


Non-taxable securities

172,812


5,647


4.36%


114,547


3,976


4.43%


Interest-bearing deposits in other banks

38,359


851


2.22%


45,766


735


1.61%


Total interest-earning assets

$   2,024,220


98,054


4.95%


$   1,594,543


73,677


4.69%


Noninterest-earning assets:













Cash and due from financial institutions

47,472






43,247






Premises and equipment, net

21,946






19,045






Accrued interest receivable

7,088






5,514






Intangible assets

85,744






45,524






Other assets

24,273






17,678






Bank owned life insurance

44,352






30,483






Less allowance for loan losses

(13,984)






(13,211)






      Total Assets

$   2,241,111






$   1,742,823



















Liabilities and Shareholders Equity:













Interest-bearing liabilities:













Demand and savings

$      869,340


$   2,871


0.33%


$      685,497


$   1,442


0.21%


Time

269,823


5,186


1.92%


189,600


2,316


1.22%


FHLB

161,047


3,452


2.14%


119,753


2,471


2.06%


Federal funds purchased

137


3


2.19%


116


3


2.59%


Subordinated debentures

29,427


1,423


4.84%


29,427


1,320


4.49%


Repurchase Agreements

18,321


19


0.10%


18,456


18


0.10%


Total interest-bearing liabilities

$   1,348,095


12,954


0.96%


$   1,042,849


7,570


0.73%


Noninterest-bearing deposits

550,638






466,763






Other liabilities

24,072






15,840






Shareholders' Equity

318,306






217,371






Total Liabilities and Shareholders' Equity

$   2,241,111






$   1,742,823



















Net interest income and interest rate spread


$ 85,100


3.99%




$ 66,107


3.96%















Net interest margin





4.31%






4.21%















* - Average yields are presented on a tax equivalent basis. The tax equivalent effect associated with loans and investments, included in the yields above, was $1.52 million and $1.06 million for the periods ended December 31, 2019 and 2018, respectively.  See reconciliation of non-GAAP measures at the end of this press release.


** - Average balance includes nonaccrual loans


Provision for loan losses was $885 thousand for the fourth-quarter and $1.0 million for the year ended December 31, 2019, compared to $390 thousand for the fourth quarter and $780 thousand for the year ended December 31, 2018, respectively.  The increase in provision for loan losses is due to an increase in loan volume.

Mr. Shaffer continued, "While we had net recoveries for the year, the success we have had in growing loans required us to provide for loan losses even during a period of strong asset quality."

Noninterest income totaled $5.6 million, an increase of $789 thousand, or 16.3%, for the fourth quarter of 2019 compared to the prior year's fourth quarter.  Noninterest income for the year of 2019 totaled $22.4 million, an increase of $4.3 million, or 23.8%, compared to 2018.    

Noninterest income








(unaudited - dollars in thousands)

Three months ended December 31,


2019


2018


$ change


% change

Service charges

$    1,662


$    1,496


$       166


11.1%

Net gain on sale of securities

55


(103)


158


153.4%

Net gain on sale of loans

1,006


386


620


160.6%

ATM/Interchange fees

1,185


1,030


155


15.0%

Wealth management fees

937


1,108


(171)


-15.4%

Bank owned life insurance

254


286


(32)


-11.2%

Other

528


635


(107)


-16.9%

Total noninterest income

$    5,627


$    4,838


$       789


16.3%

















Noninterest income








(unaudited - dollars in thousands)

Twelve months ended December 31,


2019


2018


$ change


% change

Service charges

$    6,395


$    5,208


$    1,187


22.8%

Net gain (loss) on sale of securities

153


(387)


540


139.5%

Net gain on sale of loans

2,707


1,621


1,086


67.0%

ATM/Interchange fees

4,056


2,794


1,262


45.2%

Wealth management fees

3,670


3,669


1


0.0%

Bank owned life insurance

1,007


718


289


40.3%

Tax refund processing fees

2,750


2,750


-


0.0%

Other

1,705


1,758


(53)


-3.0%

Total noninterest income

$  22,443


$  18,131


$    4,312


23.8%

The increases in service charge fee income and ATM/Interchange fees income for both the fourth quarter and year, and bank owned life insurance for the year, are primarily attributable to the Company's acquisition of UCB during the third quarter of 2018.  Bank owned life insurance declined in the fourth quarter of 2019 as a result of lower yield on the portfolio compared to 2018. 

The net gain on sale of securities was affected by a loss of $392 thousand in 2018, which was part of a restructuring of securities after the UCB acquisition. 

The net gain on sale of loans increased due to strong mortgage activity.  During the fourth-quarter of 2019, Civista sold $45.2 million of mortgages compared to $21.4 million in 2018.  Year-to-date mortgage loans sold totaled $125.8 million in 2019 compared to $79.5 million in 2018. The decrease in wealth management fees for the fourth quarter is primarily due to a $245 thousand accrual adjustment made in 2018 to adopt the revenue recognition standard. 

Noninterest expense totaled $17.1 million for the fourth quarter of 2019, an increase of $737 thousand, or 4.5%, compared to 2018.  Noninterest expense for the year of 2019 totaled $66.9 million, an increase of $268 thousand, or 0.4%, compared to 2018.

Noninterest expense








(unaudited - dollars in thousands)

Three months ended December 31,


2019


2018


$ change


% change

Compensation expense

$  10,097


$    9,668


$       429


4.4%

Net occupancy and equipment 

1,671


1,573


98


6.2%

Contracted data processing

530


904


(374)


-41.4%

Taxes and assessments

286


487


(201)


-41.3%

Professional services

693


816


(123)


-15.1%

Amortization of intangible assets

235


281


(46)


-16.4%

Marketing

300


194


106


54.6%

Other

3,316


2,468


848


34.4%

Total noninterest expense

$  17,128


$  16,391


$       737


4.5%

















Noninterest expense








(unaudited - dollars in thousands)

Twelve months ended December 31,


2019


2018


$ change


% change

Compensation expense

$  39,156


$  37,299


$    1,857


5.0%

Net occupancy and equipment 

6,081


5,017


1,064


21.2%

Contracted data processing

1,831


7,140


(5,309)


-74.4%

Taxes and assessments

1,981


1,906


75


3.9%

Professional services

2,844


4,229


(1,385)


-32.8%

Amortization of intangible assets

945


366


579


158.2%

Marketing

1,411


1,182


229


19.4%

Other

12,698


9,540


3,158


33.1%

Total noninterest expense

$  66,947


$  66,679


$       268


0.4%

After adjusting the fourth quarter and year-to-date periods of 2018, which included $172 thousand and $5.2 million of acquisition expenses, compensation expense increased $601 thousand and $7.1 million for the three and twelve-month periods ending December 31, 2019, respectively.  The increase is due to an increase in full time equivalent (FTE) employees and annual pay increases.  FTE employees increased 75 to 445 FTE compared to the same period of 2018, as a result of the UCB acquisition.

The increase in net occupancy and equipment expense is primarily due to the addition of eight branches from acquisition of UCB as well as the opening of our Beachwood branch at the end of October.  The decreases in contracted data processing expenses are primarily due to $260 thousand for fourth quarter and $5.5 million for year-to-date 2018 for data processing conversion expenses of UCB.  The decreases in professional services is primarily due to the 2018 three and twelve-month periods include $139 thousand and $1.6 million of legal and consulting expenses related to the UCB acquisition, respectively.   

The efficiency ratio was 61.4% for the twelve months ended December 31, 2019 compared to 78.2% for the twelve months ended December 31, 2018.  Excluding the merger related expenses, the efficiency ratio would have been 62.9% for the twelve months ended December 31, 2018.  See the non-GAAP reconciliation at the end of this document.  

Civista's effective income tax rate for the fourth quarter and year-to-date period ended December 31, 2019 was 11.3% and 14.4%, respectively, compared to 14.0% and 15.3% in 2018. 

Balance Sheet

Total assets increased $170.6 million, or 8.0%, from December 31, 2018 to December 31, 2019, primarily due to loan growth.

End of period loan balances








(dollars in thousands)









December 31,


December 31,






2019


2018


$ Change


% Change

Commercial and Agriculture

$           203,110


$           177,101


$    26,009


14.7%

Commercial Real Estate:








Owner Occupied

245,606


210,121


35,485


16.9%

Non-owner Occupied

592,222


523,598


68,624


13.1%

Residential Real Estate

463,032


457,850


5,182


1.1%

Real Estate Construction

155,825


135,195


20,630


15.3%

Farm Real Estate

34,114


38,513


(4,399)


-11.4%

Consumer and Other

15,061


19,563


(4,502)


-23.0%

Total Loans

$        1,708,970


$        1,561,941


$  147,029


9.4%

Loan growth during 2019 totaled $147.0 million, led by increases of $104.1 million in Commercial Real Estate, $20.6 million in Real Estate Construction and $26.0 million in Commercial and Agriculture.   Growth has been consistent across the entire footprint, with amplified growth in the Cleveland, Columbus and Cincinnati MSAs.  

Mr. Shaffer continued, "We ended 2019 with the largest loan portfolio ever for Civista.  The year ended with a tremendous amount of momentum as loan growth in the fourth quarter was $60.3 million, or 14.5%, annualized.  In addition, we had a record year in residential mortgage loan production, originating $194.4 million of loans, of which $126.7 million were sold or held for sale."

Total deposits increased $98.9 million, or 6.3%, from December 31, 2018 to December 31, 2019. 

End of period deposit balances








(dollars in thousands)









December 31,


December 31,






2019


2018


$ Change


% Change

Noninterest-bearing demand

$             512,553


$             468,083


$      44,470


9.5%

Interest-bearing demand

301,674


261,996


39,678


15.1%

Savings and money market

588,697


582,128


6,569


1.1%

Time deposits

275,840


262,686


13,154


5.0%

Brokered deposits

-


5,000


(5,000)


-100.0%

Total Deposits

$         1,678,764


$         1,579,893


$      98,871


6.3%

The increase in noninterest-bearing demand is primarily due to an increase in business deposits of $49.6 million.  Interest-bearing demand deposits increased primarily due to an increase in public fund accounts of $23.9 million.      

Federal Home Loan Bank advances at December 31, 2019 increased $32.9 million, or 17.0%, to $226.5 million from December 31, 2018 to help fund loan growth. 

Total shareholders' equity increased $31.2 million, or 10.4%, from December 31, 2018 to December 31, 2019.  Retained earnings increased $26.7 million.  Approximately $9.0 million of preferred stock was converted to 1.2 million shares of common stock during 2019.  Approximately $400 thousand of preferred stock was redeemed on December 20, 2019.  As of December 31, 2019, all of the preferred shares have been converted to common shares, or were redeemed.    

Mr. Shaffer continued, "In October we announced the upcoming redemption of the convertible preferred shares that were issued in 2013.  As the shares were heavily in the money, the majority of the holders converted their shares prior to redemption."

Stock Repurchase Program

During 2019, Civista repurchased 188,200 shares for $3.9 million, which equates to a weighted average price of $20.77 per share.  A new share repurchase plan was approved in December 2019, authorizing the repurchase of up to 672,000 shares of outstanding common shares, all of which were available for purchase at December 31, 2019. 

Asset Quality

The Company recorded net recoveries of $53 thousand for the twelve months of 2019 compared to net charge-offs of $235 thousand for the same period of 2018.    

Allowance for Loan Losses




(dollars in thousands)





December 31,


December 31,


2019


2018

Beginning of period

$         13,679


$         13,134

Charge-offs

(776)


(903)

Recoveries

829


668

Provision

1,035


780

End of period

$         14,767


$         13,679

The allowance for loan losses to loans was 0.86% and 0.88% for 2019 and 2018, respectively.  The non-performing assets to assets ratio decreased to 0.39% from 0.46% in 2018.  The allowance for loan losses to non-performing loans increased to 161.95% from 137.87% in 2018.    

Non-performing assets at December 31, 2019 were $9.1 million, an 8.1% decrease from December 31, 2018. 

Non-performing Assets




(dollars in thousands)

December 31,


December 31,


2019


2018

Non-accrual loans

$          6,115


$          6,898

Restructured loans

3,004


3,024

Total non-performing loans

9,119


9,922

Other Real Estate Owned

-


-

Total non-performing assets

$          9,119


$          9,922

Conference Call and Webcast

Civista Bancshares, Inc. will also host a conference call to discuss the Company's financial results for the fourth quarter of 2019 at 1:00 p.m. ET on Friday, February 7, 2020.  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. Fourth 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).

Non-GAAP Financial Measures

Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with GAAP.  These non-GAAP financial measures include "Adjusted Earnings," and "Adjusted Efficiency Ratio."  The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company's profitability.  These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures.  Not all companies use the same calculation of these measures; therefore, this presentation may not be comparable to other similarly titled measures as presented by other companies.

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 $2.3 billion financial holding company headquartered in Sandusky, Ohio.  The Company's banking subsidiary, Civista Bank, operates 37 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". 

Civista Bancshares, Inc.

Financial Highlights

(dollars in thousands, except share amounts)


Consolidated Condensed Statement of Operations










Three Months Ended


Twelve Months Ended


December 31,


December 31,


(unaudited)


(unaudited)


2019


2018


2019


2018









Interest and dividend income

$         24,521


$         23,707


$         98,054


$         73,677

Interest expense

3,299


2,962


12,954


7,570

Net interest income

21,222


20,745


85,100


66,107

Provision for loan losses

885


390


1,035


780

Net interest income after provision

20,337


20,355


84,065


65,327

Noninterest income

5,627


4,838


22,443


18,131

Noninterest expense

17,128


16,391


66,947


66,679

Income before taxes

8,836


8,802


39,561


16,779

Income tax expense

995


1,233


5,683


2,640

Net income 

7,841


7,569


33,878


14,139

Preferred stock dividends 

157


165


647


959

Net income  available 








to common shareholders

$           7,684


$           7,404


$         33,231


$         13,180









Dividends per common share

$             0.11


$             0.09


$             0.42


$             0.32









Earnings per common share,








basic

$             0.49


$             0.48


$             2.12


$             1.10

diluted

$             0.47


$             0.45


$             2.01


$             1.02









Average shares outstanding,








basic

15,796,713


15,521,404


15,652,881


11,971,786

diluted

16,734,391


16,898,186


16,851,740


13,855,707









Selected financial ratios:








Return on average assets

1.37%


1.43%


1.51%


0.81%

Return on average equity

9.44%


10.35%


10.64%


6.50%

Dividend payout ratio

22.16%


18.46%


19.41%


27.10%

Net interest margin (tax equivalent)

4.18%


4.38%


4.31%


4.21%

 

 Selected Balance Sheet Items 






 December 31, 


 December 31, 


2019


2018






 (unaudited) 


 (unaudited) 

 Cash and due from financial institutions 

$                  48,535


$                  42,779

 Investment securities 

359,690


347,364

 Loans held for sale 

2,285


1,391

 Loans 

1,708,970


1,561,941

 Less allowance for loan losses 

14,767


13,679

 Net loans 

1,694,203


1,548,262

 Other securities 

20,280


21,021

 Premises and equipment, net 

22,871


22,021

 Goodwill and other intangibles 

85,156


86,203

 Bank owned life insurance 

44,999


43,037

 Other assets 

31,538


26,876

 Total assets 

$            2,309,557


$            2,138,954





 Total deposits 

$            1,678,764


$            1,579,893

 Federal Home Loan Bank advances 

226,500


193,600

 Securities sold under agreements to repurchase 

18,674


22,199

 Subordinated debentures 

29,427


29,427

 Accrued expenses and other liabilities 

26,066


14,937

 Total shareholders' equity 

330,126


298,898

 Total liabilities and shareholders' equity 

$            2,309,557


$            2,138,954





 Shares outstanding at period end 

16,687,542


15,603,499





 Book value per share 

$                    19.78


$                    18.56

 Equity to asset ratio 

14.29%


13.97%





Selected asset quality ratios:




Allowance for loan losses to total loans

0.86%


0.88%

Non-performing assets to total assets

0.39%


0.46%

Allowance for loan losses to non-performing loans

161.95%


137.87%





Non-performing asset analysis




Nonaccrual loans

$                    6,115


$                    6,898

Troubled debt restructurings

3,004


3,024

Other real estate owned

-


-

Total

$                    9,119


$                    9,922

 

Supplemental Financial Information

(Unaudited - Dollars in thousands except share data)












December 31,


September 30,


June 30,


March 31,


December 31,

End of Period Balances

2019


2019


2019


2019


2018











Assets










Cash and due from banks

$       48,535


$       62,219


$       49,839


$     164,094


$        42,779

Investment securities

359,690


356,439


360,512


351,006


347,364

Loans held for sale

2,285


8,983


2,563


1,444


1,391

Loans

1,708,970


1,648,640


1,598,770


1,573,193


1,561,941

Allowance for loan losses

(14,767)


(14,144)


(13,786)


(13,822)


(13,679)

Net Loans

1,694,203


1,634,496


1,584,984


1,559,371


1,548,262

Other securities

20,280


20,280


20,280


20,280


21,021

Premises and equipment, net

22,871


22,201


21,720


21,772


22,021

Goodwill and other intangibles

85,156


85,461


85,706


85,955


86,203

Bank owned life insurance

44,999


44,745


44,491


44,239


43,037

Other assets

31,538


34,241


32,900


29,541


26,876

Total Assets

$  2,309,557


$  2,269,065


$  2,202,995


$  2,277,702


$  2,138,954











Liabilities










Total deposits

$  1,678,764


$  1,632,621


$  1,632,720


$  1,765,801


$  1,579,893

Federal Home Loan Bank advances

226,500


236,100


176,300


127,100


193,600

Securities sold under agreement to repurchase

18,674


15,088


15,554


21,970


22,199

Subordinated debentures

29,427


29,427


29,427


29,427


29,427

Accrued expenses and other liabilities

26,066


26,566


24,782


21,347


14,937

Total liabilities

1,979,431


1,939,802


1,878,783


1,965,645


1,840,056











Shareholders' Equity










Preferred shares, Series B

-


9,158


9,364


9,364


9,364

Common shares

276,422


267,559


267,275


266,990


266,901

Accumulated earnings

67,974


62,023


56,199


49,421


41,320

Treasury shares

(21,144)


(21,144)


(17,235)


(17,235)


(17,235)

Accumulated other comprehensive income(loss)

6,874


11,667


8,609


3,517


(1,452)

Total shareholders' equity

330,126


329,263


324,212


312,057


298,898











Total Liabilities and Shareholders' Equity

$  2,309,557


$  2,269,065


$  2,202,995


$  2,277,702


$  2,138,954











Quarterly Average Balances










Assets:










Earning assets

$  2,070,175


$  2,021,780


$  1,986,841


$  2,017,523


$  1,907,966

Securities

372,639


379,525


373,999


365,219


352,412

Loans

1,676,769


1,626,010


1,583,533


1,564,208


1,532,012

Liabilities and Shareholders' Equity










Total deposits

$  1,661,452


$  1,622,527


$  1,670,247


$  1,807,102


$  1,591,521

Interest-bearing deposits

1,160,499


1,139,632


1,129,964


1,126,173


1,120,876

Other interest-bearing liabilities

252,908


246,235


186,140


148,891


204,002

Total shareholders' equity

329,634


326,103


315,438


301,656


290,096

 

Supplemental Financial Information

(Unaudited - Dollars in thousands except share data)












Three Months Ended


December 31,


September 30,


June 30,


March 31,


December 31,

Income statement

2019


2019


2019


2019


2018











Total interest and dividend income

$         24,521


$         24,023


$         24,926


$         24,584


$         23,707

Total interest expense

3,299


3,605


3,184


2,865


2,962

Net interest income

21,222


20,418


21,742


21,719


20,745

Provision for loan losses

885


150


-


-


390

Noninterest income

5,627


5,429


5,104


6,284


4,838

Noninterest expense

17,128


16,731


16,639


16,449


16,391

Income before taxes

8,836


8,966


10,207


11,554


8,802

Income tax expense

995


1,258


1,546


1,885


1,233

Net income

7,841


7,708


8,661


9,669


7,569

Preferred stock dividends

157


162


164


164


165

Net income available to 










common shareholders

$            7,684


$            7,546


$            8,497


$            9,505


$            7,404











Common shares dividend paid

$            1,702


$            1,722


$            1,719


$            1,404


$            1,386











Per share data




















Basic earnings per common share

$              0.49


$              0.48


$              0.54


$              0.61


$              0.48

Diluted earnings per common share

0.47


0.46


0.51


0.57


0.45

Dividends per common share

0.11


0.11


0.11


0.09


0.09

Average common shares outstanding - basic

15,796,713


15,577,371


15,628,537


15,607,655


15,521,404

Average common shares outstanding - diluted

16,734,391


16,849,887


16,922,712


16,901,830


16,898,186











Asset quality










Allowance for loan losses, beginning of period

$         14,144


$         13,786


$         13,822


$         13,679


$         13,331

Charge-offs

(345)


(36)


(156)


(239)


(119)

Recoveries

83


244


120


382


77

Provision

885


150


-


-


390

Allowance for loan losses, end of period

$         14,767


$         14,144


$         13,786


$         13,822


$         13,679











Ratios










Allowance to total loans

0.86%


0.86%


0.86%


0.88%


0.88%

Allowance to nonperforming assets

161.95%


149.91%


164.69%


150.60%


137.87%

Allowance to nonperforming loans

161.95%


149.91%


164.69%


150.60%


137.87%











Nonperforming assets










Nonperforming loans

$            9,119


$            9,435


$            8,371


$            9,178


$            9,922

Other real estate owned

-


-


-


-


-

Total nonperforming assets

$            9,119


$            9,435


$            8,371


$            9,178


$            9,922











Capital and liquidity










Tier 1 leverage ratio

12.35%


12.37%


12.44%


11.64%


12.22%

Tier 1 risk-based capital ratio

15.26%


15.50%


15.94%


15.64%


15.30%

Total risk-based capital ratio

16.10%


16.32%


16.78%


16.48%


16.15%

Tangible common equity ratio (1)

11.08%


10.81%


10.89%


9.96%


9.98%











(1) See reconciliation of 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


Three Months
Ended


Twelve Months
Ended


Twelve Months
Ended


December 31,


December 31,


December 31,


December 31,

Adjusted earnings

2019


2018


2019


2018









Income before taxes (GAAP)

8,836


8,802


39,561


16,779

Gain (loss) on sale of investment securities

15


(27)


32


(413)

Acquisition and integration expenses

-


782


-


12,735

Adjusted earnings, pretax (Non-GAAP)

8,821


9,611


39,529


29,927

Income tax expense

995


1,233


5,683


2,640

Income tax expense adjustment

3


150


7


1,678

Adjusted net income (Non-GAAP)

7,823


8,228


33,839


25,609

Preferred stock dividends

157


165


647


959

Adjusted net income available to 








common shareholders (Non-GAAP)

$               7,666


$               8,063


$             33,192


$             24,650









Adjusted earnings per common share - basic

$                 0.49


$                 0.52


$                 2.12


$                 2.06

Adjusted earnings per common share - diluted

0.47


0.49


2.01


1.85

Average common shares outstanding - basic

15,796,713


15,521,404


15,652,881


11,971,786

Average common shares outstanding - diluted

16,734,391


16,898,186


16,849,740


13,855,707









Adjusted return on average assets

1.37%


1.55%


1.51%


1.47%

Adjusted return on average equity

9.42%


11.25%


10.63%


11.78%









Adjusted Efficiency ratio

















Three Months
Ended


Three Months
Ended


Twelve Months
Ended


Twelve Months
Ended


December 31,


December 31,


December 31,


December 31,


2019


2018


2019


2018









Noninterest expense (GAAP)

17,128


16,391


66,947


66,679

Acquisition and integration expense

-


(782)


-


(12,735)

Adjusted noninterest expense (Non-GAAP)

17,128


15,609


66,947


53,944









Net interest income (GAAP)

21,222


20,745


85,100


66,107

Effect of tax-exempt income

386


350


1,516


1,062

Adjusted tax equivalent net








 interest income (Non-GAAP)

21,608


21,095


86,616


67,169









Noninterest Income - GAAP

5,627


4,838


22,443


18,131

Gain (loss) on sales of investment securities, net

15


(27)


32


(413)

Adjusted Non-interest Income (Non-GAAP)

5,612


4,865


22,411


18,544









Adjusted total revenue (Non-GAAP)

27,220


25,960


109,027


85,713









Adjusted Efficiency ratio (Non-GAAP)

62.9%


60.1%


61.4%


62.9%









 

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SOURCE Civista Bancshares, Inc.


Source: Civista Bancshares, Inc.