Exhibit 99.1

 

Civista Bancshares, Inc. Announces Third Quarter 2021 Financial Results

Sandusky, Ohio, October 27, 2021 /PRNewswire/ – Civista Bancshares, Inc. (NASDAQ:CIVB) (“Civista”) announced its unaudited financial results for the three and nine months ending September 30, 2021.

Third quarter and year-to-date 2021 highlights:

 

•

Net income of $9.6 million, or $0.64 per diluted share, for the third quarter of 2021, compared to $7.7 million, or $0.48 per diluted share, for the third quarter of 2020.

 

•

Net income of $29.6 million, or $1.90 per diluted share, compared to $22.0 million, or $1.36 per diluted share, for the nine months ended September 30, 2021 and 2020, respectively.

 

•

COVID–19 loan deferrals decreased to 0.9% of total loans at period end, compared to 3.6% at December 31, 2020 and 21.3% at June 30, 2020.

 

•

Third quarterly dividend of $0.14 is equivalent to an annualized yield of 2.41% based on the September 30, 2021 market close of $23.23 and a dividend payout ratio of 21.88%.

 

•

In the third quarter, we began the redeployment of $50.0 million excess liquidity into investment securities, yielding 1.80%.

“We turned in another solid Civista quarter. We redeployed excess cash into our investment portfolio to pick up yield. While mortgage refinancing is slowing down, our mortgage team had another good quarter” said Dennis G. Shaffer, CEO and President of Civista.

Results of Operations:

For the three-month period ended September 30, 2021 and 2020

Net interest income increased $2.4 million, or 11.0%, for the third quarter of 2021 compared to the same period of 2020, due to a $1.2 million increase in interest income of as well as a $1.2 million decrease in interest expense. Interest income included a $1.3 million increase on accretion of PPP loan fees during the quarter compared to last year.

The increase in interest income was due to an increase in average earning assets of $129.6 million and to the $2.5 million of PPP fees as well as $550.5 thousand accretion income related to loan portfolios acquired through acquisitions.

The decrease in interest expense is primarily due to a decrease in average rates of 27 basis points. Average interest-bearing liabilities also decreased by $48.7 million, or 2.8%. The decrease in average interest-bearing liabilities was primarily due to the second quarter pay-off of a $50 million long-term FHLB advance at a rate of 2.05%.

Net interest margin increased 18 basis points to 3.62% for the third quarter of 2021, compared to 3.44% for the same period a year ago.

PPP loans averaged $105.9 million during the quarter at an average yield of 10.44%, including the related fee accretion, which increased the margin by 28 basis points.

Average Balance Analysis

(Unaudited - Dollars in thousands)

 

		Three Months Ended September 30,
		2021												2020
		Average								Yield/				Average								Yield/
Assets:		balance				Interest				rate*				balance				Interest				rate*
Interest-earning assets:
Loans**		$	2,010,665			$	22,704				4.48	%		$	2,040,492			$	21,638				4.22	%
Taxable securities			264,655				1,423				2.18	%			183,196				1,325				3.01	%
Non-taxable securities			217,987				1,555				3.91	%			205,398				1,536				4.14	%
Interest-bearing deposits in other banks			254,143				102				0.16	%			188,798				59				0.12	%
Total interest-earning assets		$	2,747,450				25,784				3.82	%		$	2,617,884				24,558				3.83	%
Noninterest-earning assets:
Cash and due from financial institutions			33,803												29,647
Premises and equipment, net			22,845												23,214
Accrued interest receivable			7,417												10,109
Intangible assets			84,949												84,906
Bank owned life insurance			46,557												45,574
Other assets			38,189												42,916
Less allowance for loan losses			(26,683	)											(21,214	)
Total Assets		$	2,954,527											$	2,833,036
Liabilities and Shareholders’ Equity:
Interest-bearing liabilities:
Demand and savings		$	1,331,032			$	302				0.09	%		$	1,108,512			$	389				0.14	%
Time			257,047				668				1.03	%			292,806				1,242				1.69	%
FHLB			75,000				194				1.03	%			125,000				452				1.44	%
Other borrowings			—				—				0.00	%			184,238				269				0.58	%
Subordinated debentures			29,427				182				2.45	%			29,427				194				2.62	%
Repurchase agreements			23,084				5				0.09	%			24,300				6				0.10	%
Total interest-bearing liabilities		$	1,715,590				1,351				0.31	%		$	1,764,283				2,552				0.58	%
Noninterest-bearing deposits			849,501												683,473
Other liabilities			40,466												46,002
Shareholders’ equity			348,970												339,278
Total Liabilities and Shareholders’ Equity		$	2,954,527											$	2,833,036
Net interest income and interest rate spread						$	24,433				3.50	%						$	22,006				3.25	%
Net interest margin											3.62	%											3.44	%

 

*	- Average yields are presented on a tax equivalent basis. The tax equivalent effect associated with loans and investments, included in the yields above, was $414 thousand and $411 thousand for the periods ended September 30, 2021 and 2020, respectively.

**	- Average balance includes nonaccrual loans

For the nine-month period ended September 30, 2021 and 2020

Net interest income increased $5.9 million, or 8.9%, compared to the same period in 2020.

Interest income increased $2.9 million, or 3.9%, for the first nine months of 2021. Average earning assets increased $382.5 million, which resulted in a $5.6 million increase in interest income. Average yields decreased 42 basis points which resulted in a $2.7 million decrease in interest income. During the nine-month period, the Bank had average PPP Loans totaling $187.4 million. These loans had an average yield of 7.01% including the amortization of PPP fees, which increased the margin by 32 basis points.

Interest expense decreased $3.0 million, or 38.3%, for the first nine months of 2021 compared to the same period of 2020. Average rates decreased 29 basis points, resulting in a $2.5 million decrease in interest expense. Average interest-bearing liabilities increased $133.5 million, but a mix shift toward interest-bearing demand deposits led to a decrease in interest expense of $549 thousand.

Net interest margin decreased 22 basis points to 3.48% for the first nine months of 2021, compared to 3.70% for the same period a year ago.

Average Balance Analysis

(Unaudited - Dollars in thousands)

 

		Nine Months Ended September 30,
		2021												2020
		Average								Yield/				Average								Yield/
Assets:		balance				Interest				rate*				balance				Interest				rate*
Interest-earning assets:
Loans**		$	2,044,741			$	68,140				4.46	%		$	1,913,514			$	64,924				4.53	%
Taxable securities			214,979				3,928				2.51	%			185,577				4,100				3.07	%
Non-taxable securities			211,538				4,599				4.02	%			201,303				4,589				4.18	%
Interest-bearing deposits in other banks			371,204				341				1.20	%			159,539				531				0.44	%
Total interest-earning assets		$	2,842,462				77,008				3.71	%		$	2,459,933				74,144				4.13	%
Noninterest-earning assets:
Cash and due from financial institutions			37,763												94,083
Premises and equipment, net			22,578												22,830
Accrued interest receivable			8,146												8,729
Intangible assets			84,817												84,965
Bank owned life insurance			46,310												45,332
Other assets			37,504												37,802
Less allowance for loan losses			(26,288	)											(17,759	)
Total Assets		$	3,053,292											$	2,735,915
Liabilities and Shareholders’ Equity:
Interest-bearing liabilities:
Demand and savings		$	1,297,217			$	979				0.10	%		$	1,010,719			$	1,433				0.19	%
Time			270,139				2,387				1.18	%			287,740				3,985				1.85	%
FHLB			100,458				968				1.29	%			135,888				1,480				1.46	%
Other borrowings			—				—				0.00	%			103,133				275				0.36	%
Federal funds purchased			—				—				0.00	%			385				1				0.35	%
Subordinated debentures			29,427				553				2.51	%			29,427				757				3.44	%
Repurchase agreements			26,695				19				0.10	%			23,141				17				0.10	%
Total interest-bearing liabilities		$	1,723,936				4,906				0.38	%		$	1,590,433				7,948				0.67	%
Noninterest-bearing deposits			940,123												757,696
Other liabilities			39,952												53,633
Shareholders’ equity			349,281												334,153
Total Liabilities and Shareholders’ Equity		$	3,053,292											$	2,735,915
Net interest income and interest rate spread						$	72,102				3.33	%						$	66,196				3.46	%
Net interest margin											3.48	%											3.70	%

 

*	- Average yields are presented on a tax equivalent basis. The tax equivalent effect associated with loans and investments, included in the yields above, was $1.2 million and $1.2 million for the periods ended September 30, 2021 and 2020, respectively.

**	- Average balance includes nonaccrual loans

No provision for loan losses was recorded during the third quarter while we recorded $830 thousand for the first nine months of 2021. The provision for loan losses was $2.3 million for the third quarter of 2020 and $7.9 million for the first nine months of 2020. The reserve ratio increased to 1.33% at September 30, 2021 from 1.22% at December 31, 2020. The reserve ratio without $83.3 million of PPP loans would have been 5 basis points higher.

For the third quarter of 2021, noninterest income totaled $6.4 million, a decrease of $360 thousand, or 5.3%, compared to the prior year’s third quarter.

 

Noninterest income
(unaudited - dollars in thousands)		Three months ended September 30,
		2021				2020				$ change				% change
Service charges		$	1,519			$	1,414			$	105				7.4	%
Net gain on sale of securities			4				92				(88	)			-95.7	%
Net gain on equity securities			50				20				30				150.0	%
Net gain on sale of loans			1,612				2,413				(801	)			-33.2	%
ATM/Interchange fees			1,330				1,183				147				12.4	%
Wealth management fees			1,236				1,006				230				22.9	%
Bank owned life insurance			261				243				18				7.4	%
Swap fees			41				158				(117	)			-74.1	%
Other			373				257				116				45.1	%
Total noninterest income		$	6,426			$	6,786			$	(360	)			-5.3	%

Net gain on sale of loans decreased primarily as a result of a decrease in volume of loans sold. Loans sold totaled $56.9 million and $84.3 million during the three months ended September 30, 2021 and 2020, respectively.

Service charges increased as a result of higher overdraft fees and service charges. During 2020, customer behavior changed as a result of the COVID-19 pandemic, resulting in fewer overdrafts. Overdraft fees are trending toward pre-pandemic levels.

ATM/Interchange fees increased as a result of increased volume of transactions and incentives from our network providers.

Wealth management fees increased due to an increase in average assets under management as well as an increase in the average rate earned on the assets in 2021.

Swap fees decreased due to the volume. For the quarter, we did not record any new swaps compared to $15.0 million during the same period last year. We reduced the loans we entered into swaps on as a part of our asset liability management program. Given current rates, we have chosen to book the fixed rate loan that we might otherwise have swapped to a variable rate.

Other noninterest income increased primarily due to Mortgage Servicing Rights valuation and to credit card fee income.

For the nine months ended September 30, 2021, noninterest income totaled $24.6 million, an increase of $4.1 million, or 20.1%, compared to the same period in the prior year.

 

Noninterest income
(unaudited - dollars in thousands)		Nine months ended September 30,
		2021				2020				$ change				% change
Service charges		$	4,092			$	3,812			$	280				7.3	%
Net gain on sale of securities			1,787				92				1,695				1842.4	%
Net gain/(loss) on equity securities			191				(126	)			317				251.6	%
Net gain on sale of loans			6,575				5,501				1,074				19.5	%
ATM/Interchange fees			3,950				3,226				724				22.4	%
Wealth management fees			3,570				2,916				654				22.4	%
Bank owned life insurance			752				733				19				2.6	%
Tax refund processing fees			2,375				2,375				—				0.0	%
Swap fees			135				1,260				(1,125	)			-89.3	%
Other			1,214				727				487				67.0	%
Total noninterest income		$	24,641			$	20,516			$	4,125				20.1	%

Service charges increased as a result of higher and service charges. Civista also waived service fees on deposit accounts of $93 thousand during 2020. Overdraft fees are trending toward pre-pandemic levels.

Net gain on sale of securities increased as a result of the sale of Visa Class B shares.

Net gain (loss) on equity securities increased as a result of market value increases.

Net gain on sale of loans increased due to an increase in the premium on sold loans of 61 basis points. The volume of loans sold decreased by $6.4 million in 2021 compared to 2020.

ATM/Interchange fees increased as a result of increased volume of transactions and incentives from our network providers.

Wealth management fees increased due to an increase in average assets under management as well as an increase in the average rate earned on the assets in 2021.

Swap fees decreased as a result of a decline in the volume of loans. Year to date we swapped $5.7 million compared to $84.8 million during the same period last year. We reduced the loans we entered into swaps on as a part of our asset liability management program. Given current rates, we have chosen to book the fixed rate loan that we might otherwise have swapped to a variable rate.

Other noninterest income increased primarily due to Mortgage Servicing Rights valuation, to credit card fee income and to a gain on the sale of an OREO property.

For the third quarter of 2021, noninterest expense totaled $19.5 million, an increase of $1.7 million, or 9.7%, compared to the prior year’s third quarter.

 

Noninterest expense
(unaudited - dollars in thousands)		Three months ended September 30,
		2021				2020				$ change				% change
Compensation expense		$	11,390			$	10,595			$	795				7.5	%
Net occupancy and equipment			1,429				1,504				(75	)			-5.0	%
Contracted data processing			429				415				14				3.4	%
Taxes and assessments			758				715				43				6.0	%
Professional services			776				669				107				16.0	%
Amortization of intangible assets			223				227				(4	)			-1.8	%
ATM/Interchange expense			594				538				56				10.4	%
Marketing			359				361				(2	)			-0.6	%
Software maintenance expense			819				506				313				61.9	%
Other			2,677				2,197				480				21.8	%
Total noninterest expense		$	19,454			$	17,727			$	1,727				9.7	%

Compensation expense included increases in salaries of $496 thousand as well as employee insurance of $300 thousand. The increase in salaries is due to annual pay increases, which occur every year in April. The increase in employee insurance is due to increased claims experience.

Professional services increased due to an increase in consulting fees related to cost savings initiatives and customer service programs.

The increase in software maintenance expense is due to both increases in software maintenance contracts the implementation of our new digital banking platform.

The quarter-over-quarter increase in other expense is due to increases in loan related expenses, the amortization of low income housing investments, education and training expense and mortgage servicing rights valuation.

The efficiency ratio was 62.2% for the quarter ended September 30, 2021 compared to 60.7% for the quarter ended September 30, 2020.

Civista’s effective income tax rate for the third quarter 2021 was 15.5% compared to 12.9% in 2020.

For the nine months ended September 30, 2021, noninterest expense totaled $61.3 million, an increase of $7.6 million, or 14.2%, compared to the same period in the prior year.

 

Noninterest expense
(unaudited - dollars in thousands)
		Nine months ended September 30,
		2021				2020				$ change				% change
Compensation expense		$	34,578			$	32,063			$	2,515				7.8	%
Net occupancy and equipment			4,556				4,557				(1	)			0.0	%
Contracted data processing			1,362				1,340				22				1.6	%
Taxes and assessments			2,436				1,925				511				26.5	%
Professional services			2,255				2,289				(34	)			-1.5	%
Amortization of intangible assets			668				686				(18	)			-2.6	%
ATM/Interchange expense			1,843				1,316				527				40.0	%
Marketing			1,000				1,056				(56	)			-5.3	%
Software maintenance expense			1,872				1,350				522				38.7	%
Other			10,741				7,115				3,626				51.0	%
Total noninterest expense		$	61,311			$	53,697			$	7,614				14.2	%

Compensation expense included increases in salaries of $832 thousand as well as commissions of $984 thousand. Employee insurance increased by $300 thousand. The increase in salaries is primarily due to annual pay increases which occur in April. The increase in commission expense is primarily the result of increased mortgage loan activity. The increase in employee insurance is due to increased claims experience.

The increase in Taxes and assessments was attributable to small bank assessment credits applied to the 2020 assessments and a $172 thousand increase in state franchise tax related to additional taxes paid on the Company’s 2019 franchise tax return.

The increase in ATM/Interchange expense is primarily due to additional volume and to a settlement received in the second quarter of 2020.

The increase in software maintenance expense is due to both increases in software maintenance contracts as well as the implementation of the new digital banking platform.

The increase in other expense is primarily due to the prepayment penalty of $3.7 million related to the early payoff of an FHLB long-term advance.

The efficiency ratio was 62.6% for the nine months ended September 30, 2021 compared to 61.1% for the nine months ended September 30, 2020. Removing the effect of the FHLB prepayment and the gain on the sale of the VISA B shares, the 2021 efficiency ratio would have been 59.9%.

Civista’s effective income tax rate for the first nine months of 2021 was 14.6% compared to 12.5% in same period in 2020.

Balance Sheet

Total assets increased $183.4 million, or 6.6%, from December 31, 2020 to September 30, 2021, primarily due to an increase in cash of $113.6 million, or 81.5%. Securities available for sale increased $134.9 million, or 37.0%. The decrease in PPP loans of $134.0 million drove the overall loan portfolio decrease of $52.7 million.

 

End of period loan balances
(unaudited - dollars in thousands)
		September 30,				December 31,
		2021				2020				$ Change				% Change
Commercial and Agriculture		$	193,454			$	192,581			$	873				0.5	%
Paycheck Protection Program loans			83,287				217,295				(134,008	)			-61.7	%
Commercial Real Estate:
Owner Occupied			292,725				278,413				14,312				5.1	%
Non-owner Occupied			788,898				705,072				83,826				11.9	%
Residential Real Estate			424,553				442,588				(18,035	)			-4.1	%
Real Estate Construction			179,491				175,609				3,882				2.2	%
Farm Real Estate			30,147				33,102				(2,955	)			-8.9	%
Consumer and Other			12,259				12,842				(583	)			-4.5	%
Total Loans		$	2,004,814			$	2,057,502			$	(52,688	)			-2.6	%

Loan balances have declined during the first nine months of 2021, primarily due to a decline in PPP loans. Removing the effects of PPP loans, the loan portfolio would have increased $81.3 million, or 4.4%. Commercial Real Estate continued to grow due to consistent demand in the Non-owner Occupied category. Real Estate Construction loans increased as the construction season got underway. Construction availability remains near all-time highs. Commercial and Agriculture loans have been negatively impacted by the amount of governmental stimulus money. The decrease in Residential Real Estate continues as a result of portfolio loans refinanced into saleable mortgage products.

Paycheck Protection Program

During 2021, we processed approximately 1,300 loans totaling $131.1 million of PPP loans as part of the second round of the PPP. This is in addition to the $268.3 million that we processed in round one during 2020. Of the total PPP loans we have originated, $316.1 million have been forgiven or have paid off. We recognized $2.5 million of PPP fees in income during the quarter, and $5.9 million for the nine months ended September 30, 2021. At September 30, 2021, $3.3 million of unearned PPP fees remain.

COVID-19 Loan Modifications

As of September 30, 2021, the remaining loans modified under the CARES Act total $18.8 million, or 0.9% of total loans at period end, compared to 3.6% at December 31, 2020. Details with respect to the loan modifications that remain on deferred status are as follows:

 

Loans currently modified under COVID-19 programs
(unaudited - dollars in thousands)
Type of Loan		Number of Loans				Balance				Percent of loans outstanding
Commercial and Agriculture			6			$	1,571				0.08	%
Commercial Real Estate:
Owner Occupied			2				2,591				0.13	%
Non-owner Occupied			9				14,174				0.71	%
Real Estate Construction			1				451				0.02	%
			18			$	18,787				0.94	%

Deposits

Total deposits increased $245.4 million, or 11.2%, from December 31, 2020 to September 30, 2021.

 

End of period deposit balances
(unaudited - dollars in thousands)
		September 30,				December 31,
		2021				2020				$ Change				% Change
Noninterest-bearing demand		$	832,492			$	720,809			$	111,683				15.5	%
Interest-bearing demand			502,865				410,139				92,726				22.6	%
Savings and money market			846,573				771,612				74,961				9.7	%
Time deposits			252,836				286,838				(34,002	)			-11.9	%
Total Deposits		$	2,434,766			$	2,189,398			$	245,368				11.2	%

The increase in noninterest-bearing demand of $111.7 million was primarily due to a $48.9 million increase in business demand deposit accounts, primarily due to the deposit of PPP loan proceeds. Public fund demand accounts increased $28.5 million. Additionally, balances related to the tax

refund processing program increased $31.5 million, which is temporary, and tends to diminish the closer we get to December 31. Interest-bearing demand deposits increased due to a $52.1 million increase in public fund accounts and a $36.4 million increase in non-public fund accounts. The increase in savings and money market was primarily due to a $45.3 million increase in statement savings, a $25.2 million increase in personal money markets and a $23.7 million increase in business money markets. These increases were partially offset by a decrease of $40.1 million increase in brokered money market accounts. Time certificates over $100 thousand decreased $23.1 million and time certificates under $100 thousand decreased by $10.3 million.

FHLB advances totaled $75.0 million at September 30, 2021, down $50.0 million from December 31, 2020. The decrease was due to the prepayment of a $50 million, 2.05% long-term advance.

Stock Repurchase Program

During the first nine months of 2021, Civista repurchased 909,859 shares for $20.5 million at a weighted average price of $22.50 per share. We have approximately $11.0 million remaining of the current $13.5 million repurchase authorization, which was approved in August 2021. In addition, Civista liquidated 5,065 shares held by employees, at $17.71 per share, to satisfy tax obligations stemming from vesting of restricted shares.

Shareholder Equity

Total shareholders’ equity decreased $1.7 million from December 31, 2020 to September 30, 2021, primarily due to a $20.6 million repurchase of treasury shares. Retained earnings increased $23.6 million and accumulated other comprehensive income decreased $5.3 million.

“We were active in repurchasing shares and in October, we filed a shelf offering to replace our existing shelf that was set to expire in November” said Dennis G. Shaffer, CEO and President of Civista.

Asset Quality

Civista recorded net recoveries of $710 thousand for the nine months of 2021 compared to net recoveries of $8 thousand for the same period of 2020. The allowance for loan losses to loans was 1.33% at September 30, 2021 and 1.22% at December 31, 2020. Removing the PPP loans, the allowance ratio would have been 5 basis points higher.

 

Allowance for Loan Losses
(unaudited - dollars in thousands)
		Nine months ended September 30,
		2021				2020
Beginning of period		$	25,028			$	14,767
Charge-offs			(148	)			(325	)
Recoveries			858				333
Provision			830				7,862
End of period		$	26,568			$	22,637

Non-performing assets at September 30, 2021 were $5.3 million, a 27.6% decrease from December 31, 2020. The non-performing assets to assets ratio decreased to 0.18 % from 0.27% at December 31, 2020. The allowance for loan losses to non-performing loans increased to 503.5% from 343.1% at December 31, 2020.

 

Non-performing Assets
(dollars in thousands)
		September 30,				December 31,
		2021				2020
Non-accrual loans		$	3,728			$	5,399
Restructured loans			1,549				1,897
Total non-performing loans			5,277				7,296
Other Real Estate Owned			26				31
Total non-performing assets		$	5,303			$	7,327

Conference Call and Webcast

Civista Bancshares, Inc. will also host a conference call to discuss the Company’s financial results for the third quarter of 2021 at 1:00 p.m. ET on Wednesday, October 27, 2021. 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. third quarter 2021 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, 2020, 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 $3.0 billion financial holding company headquartered in Sandusky, Ohio. The Company’s banking subsidiary, Civista Bank, operates 35 locations in Northern, Central and Southwestern Ohio, Southeastern Indiana and Northern Kentucky. Civista Bancshares, Inc. may be accessed at HUwww.civb.comUH. The Company’s common shares are traded on the NASDAQ Capital Market under the symbol “CIVB”.

For additional information, contact:

Dennis G. Shaffer

CEO and President

Civista Bancshares, Inc.

888-645-4121

Civista Bancshares, Inc.

Financial Highlights

(Unaudited, dollars in thousands, except share and per share amounts)

Consolidated Condensed Statement of Income

 

		Three Months Ended September 30,								Nine Months Ended September 30,
		2021				2020				2021				2020
Interest income		$	25,784			$	24,558			$	77,008			$	74,144
Interest expense			1,351				2,552				4,906				7,948
Net interest income			24,433				22,006				72,102				66,196
Provision for loan losses			—				2,250				830				7,862
Net interest income after provision			24,433				19,756				71,272				58,334
Noninterest income			6,426				6,786				24,641				20,516
Noninterest expense			19,454				17,727				61,311				53,697
Income before taxes			11,405				8,815				34,602				25,153
Income tax expense			1,763				1,133				5,038				3,134
Net income			9,642				7,682				29,564				22,019
Dividends paid per common share		$	0.14			$	0.11			$	0.38			$	0.33
Earnings per common share
Basic
Net income		$	9,642			$	7,682			$	29,564			$	22,019
Less allocation of earnings and dividends to participating securities			46				26				122				64
Net income available to common shareholders - basic		$	9,596			$	7,656			$	29,442			$	21,955
Weighted average common shares outstanding			15,168,233				16,045,544				15,543,488				16,201,898
Less average participating securities			72,071				54,274				64,064				47,246
Weighted average number of shares outstanding used to calculate basic earnings per share			15,096,162				15,991,270				15,479,424				16,154,652
Earnings per common share (1)
Basic		$	0.64			$	0.48			$	1.90			$	1.36
Diluted			0.64				0.48				1.90				1.36
Selected financial ratios:
Return on average assets			1.29	%			1.08	%			1.29	%			1.08	%
Return on average equity			10.96	%			9.01	%			11.32	%			8.80	%
Dividend payout ratio			22.02	%			22.98	%			19.98	%			24.28	%
Net interest margin (tax equivalent)			3.62	%			3.44	%			3.48	%			3.70	%

 

(1)	The Company is now presenting earnings per share using the two-class method. As such, the presentation for the prior periods have been revised. Earnings per share for the prior periods did not change as a result od using the two-class method.

Selected Balance Sheet Items

(Dollars in thousands, except share and per share amounts)

 

		September 30, 2021				December 31, 2020
		(unaudited)				(unaudited)
Cash and due from financial institutions		$	253,165			$	139,522
Investment securities			499,226				364,350
Loans held for sale			5,810				7,001
Loans			2,004,814				2,057,502
Less: allowance for loan losses			(26,568	)			(25,028	)
Net loans			1,978,246				2,032,474
Other securities			17,011				20,537
Premises and equipment, net			22,716				22,580
Goodwill and other intangibles			84,589				84,926
Bank owned life insurance			46,728				45,976
Other assets			44,745				51,496
Total assets		$	2,952,236			$	2,768,862
Total deposits		$	2,434,766			$	2,189,398
Federal Home Loan Bank advances			75,000				125,000
Securities sold under agreements to repurchase			23,331				28,914
Subordinated debentures			29,427				29,427
Accrued expenses and other liabilities			41,262				46,015
Total shareholders’ equity			348,450				350,108
Total liabilities and shareholders’ equity		$	2,952,236			$	2,768,862
Shares outstanding at period end			15,029,972				15,898,032
Book value per share		$	23.18			$	22.02
Equity to asset ratio			11.80	%			12.64	%
Selected asset quality ratios:
Allowance for loan losses to total loans			1.33	%			1.22	%
Non-performing assets to total assets			0.18	%			0.26	%
Allowance for loan losses to non-performing loans			503.50	%			343.05	%
Non-performing asset analysis
Nonaccrual loans		$	3,728			$	5,399
Troubled debt restructurings			1,549				1,897
Other real estate owned			26				31
Total		$	5,303			$	7,327

Supplemental Financial Information

(Unaudited - dollars in thousands except share data)

 

End of Period Balances		September 30, 2021				June 30, 2021				March 31, 2021				December 31, 2020				September 30, 2020
Assets
Cash and due from banks		$	253,165			$	245,306			$	437,238			$	139,522			$	194,773
Investment securities			499,226				458,831				357,798				364,350				366,691
Loans held for sale			5,810				6,618				10,769				7,001				13,256
Loans			2,004,814				2,019,196				2,060,239				2,057,502				2,040,940
Allowance for loan losses			(26,568	)			(26,197	)			(26,133	)			(25,028	)			(22,637	)
Net Loans			1,978,246				1,992,999				2,034,106				2,032,474				2,018,303
Other securities			17,011				20,537				20,537				20,537				20,537
Premises and equipment, net			22,716				22,817				22,265				22,580				22,958
Goodwill and other intangibles			84,589				84,980				84,682				84,926				84,896
Bank owned life insurance			46,728				46,467				46,219				45,976				45,732
Other assets			44,745				46,088				43,754				51,496				50,847
Total Assets		$	2,952,236			$	2,924,643			$	3,057,368			$	2,768,862			$	2,817,993
Liabilities
Total deposits		$	2,434,766			$	2,402,992			$	2,475,907			$	2,189,398			$	2,068,769
Federal Home Loan Bank advances			75,000				75,000				125,000				125,000				125,000
Securities sold under agreement to repurchase			23,331				24,916				29,513				28,914				25,813
Other borrowings			—				—				—				—				183,695
Subordinated debentures			29,427				29,427				29,427				29,427				29,427
Accrued expenses and other liabilities			41,262				39,895				47,463				46,015				43,234
Total liabilities			2,603,786				2,572,230				2,707,310				2,418,754				2,475,938
Shareholders’ Equity
Common shares			277,627				277,495				277,164				277,039				276,940
Retained earnings			116,680				109,178				101,899				93,048				84,628
Treasury shares			(55,155	)			(45,953	)			(38,574	)			(34,598	)			(33,900	)
Accumulated other comprehensive income			9,298				11,693				9,569				14,619				14,387
Total shareholders’ equity			348,450				352,413				350,058				350,108				342,055
Total Liabilities and Shareholders’ Equity		$	2,952,236			$	2,924,643			$	3,057,368			$	2,768,862			$	2,817,993
Quarterly Average Balances
Assets:
Earning assets		$	2,747,450			$	2,776,131			$	3,006,653			$	2,603,961			$	2,617,884
Securities			482,642				413,494				382,313				386,179				388,594
Loans			2,010,665				2,054,784				2,069,419				2,072,477				2,040,492
Liabilities and Shareholders’ Equity
Total deposits		$	2,437,580			$	2,448,183			$	2,632,782			$	2,144,865			$	2,084,791
Interest-bearing deposits			1,588,079				1,580,622				1,532,759				1,458,967				1,401,318
Other interest-bearing liabilities			127,511				157,264				185,605				278,357				362,965
Total shareholders’ equity			348,970				349,256				349,625				343,335				339,278

Supplemental Financial Information

(Unaudited - dollars in thousands except share data)

 

		Three Months Ended
Income statement		September 30, 2021				June 30, 2021				March 31, 2021				December 31, 2020				September 30, 2020
Total interest and dividend income		$	25,784			$	25,498			$	25,725			$	25,721			$	24,558
Total interest expense			1,351				1,657				1,897				2,190				2,552
Net interest income			24,433				23,841				23,828				23,531				22,006
Provision for loan losses			—				—				830				2,250				2,250
Noninterest income			6,426				9,025				9,190				7,666				6,786
Noninterest expense			19,454				22,467				19,390				16,968				17,727
Income before taxes			11,405				10,399				12,798				11,979				8,815
Income tax expense			1,763				1,235				2,040				1,806				1,133
Net income		$	9,642			$	9,164			$	10,758			$	10,173			$	7,682
Per share data
Earnings per common share
Basic
Net income		$	9,642			$	9,164			$	10,758			$	10,173			$	7,682
Less allocation of earnings and dividends to participating securities			46				43				32				35				26
Net income available to common shareholders - basic		$	9,596			$	9,121			$	10,726			$	10,138			$	7,656
Weighted average common shares outstanding			15,168,233				15,602,329				15,867,588				15,915,369				16,045,544
Less average participating securities			72,071				72,563				47,286				52,574				54,274
Weighted average number of shares outstanding used to calculate basic earnings per share			15,096,162				15,529,766				15,820,302				15,862,795				15,991,270
Earnings per common share (1)
Basic		$	0.64			$	0.59			$	0.68			$	0.64			$	0.48
Diluted			0.64				0.59				0.68				0.64				0.48
Common shares dividend paid		$	2,140			$	1,885			$	1,907			$	1,753			$	1,766
Dividends paid per common share			0.14				0.12				0.12				0.11				0.11

 

(1)	The Company is now presenting earnings per share using the two-class method. As such, the presentation for the prior periods have been revised. Earnings per share for the prior periods did not change as a result od using the two-class method.