Skip Navigation
Documents in Portable Document Format (PDF) require Adobe Acrobat Reader 5.0 or higher to view,download Adobe® Acrobat Reader.

Press Release

Civista Bancshares, Inc. Announces Second Quarter 2019 Earnings

Company Release - 7/26/2019 8:30 AM ET

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

Factors Affecting Comparability

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

Adjusted Earnings

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

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

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

Results of Operations:

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

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

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

Average Balance Analysis

(Unaudited - Dollars in thousands except share data)










Three Months Ended June 30,


2019


2018


Average


Yield/


Average


Yield/

Assets:

balance

Interest

rate *


balance

Interest

rate *

Interest-earning assets:








Loans **

$   1,583,533

$ 21,657

5.49%


$   1,158,956

$ 14,144

4.90%

Taxable securities

202,995

1,694

3.39%


145,435

1,040

2.85%

Non-taxable securities

171,004

1,408

4.39%


101,866

886

4.46%

Interest-bearing deposits in other banks

29,309

167

2.29%


21,696

90

1.66%

Total interest-earning assets

$   1,986,841

24,926

5.14%


$   1,427,953

16,160

4.60%

Noninterest-earning assets:








Cash and due from financial institutions

38,558




36,501



Premises and equipment, net

21,819




17,549



Accrued interest receivable

7,324




5,270



Intangible assets

85,865




28,351



Other assets

22,193




12,781



Bank owned life insurance

44,328




25,317



Less allowance for loan losses

(13,884)




(12,935)



      Total Assets

$   2,193,044




$   1,540,787











Liabilities and Shareholders Equity:








Interest-bearing liabilities:








Demand and savings

$      858,781

$      721

0.34%


$      615,667

$      250

0.16%

Time

271,183

1,255

1.86%


140,622

320

0.91%

FHLB

138,271

831

2.41%


103,460

482

1.87%

Subordinated debentures

29,427

372

5.07%


29,427

338

4.61%

Repurchase Agreements

18,442

5

0.11%


16,546

4

0.10%

Total interest-bearing liabilities

$   1,316,104

3,184

0.97%


$      905,722

1,394

0.62%

Noninterest-bearing deposits

540,283




434,126



Other liabilities

21,219




12,609



Shareholders' Equity

315,438




188,330



Total Liabilities and Shareholders' Equity

$   2,193,044




$   1,540,787











Net interest income and interest rate spread

$ 21,742

4.17%



$ 14,766

3.98%









Net interest margin



4.49%




4.21%









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

** - Average balance includes nonaccrual loans

 

 

Average Balance Analysis

(Unaudited - Dollars in thousands except share data)










Six Months Ended June 30,


2019


2018


Average


Yield/


Average


Yield/

Assets:

balance

Interest

rate *


balance

Interest

rate *

Interest-earning assets:








Loans  **

$   1,573,924

$ 42,619

5.46%


$   1,153,230

$ 27,783

4.86%

Taxable securities

205,285

3,442

3.41%


143,229

2,026

2.84%

Non-taxable securities

164,349

2,760

4.44%


101,673

1,764

4.49%

Interest-bearing deposits in other banks

58,541

689

2.37%


67,108

511

1.54%

Total interest-earning assets

$   2,002,099

49,510

5.08%


$   1,465,240

32,084

4.48%

Noninterest-earning assets:








Cash and due from financial institutions

65,567




64,211



Premises and equipment, net

21,872




17,641



Accrued interest receivable

6,931




4,860



Intangible assets

85,990




28,359



Other assets

22,394




12,968



Bank owned life insurance

43,987




25,247



Less allowance for loan losses

(13,885)




(13,037)



      Total Assets

$   2,234,955




$   1,605,489











Liabilities and Shareholders Equity:








Interest-bearing liabilities:








Demand and savings

$      857,232

$   1,429

0.34%


$      615,940

$      502

0.16%

Time

270,847

2,438

1.82%


163,878

775

0.95%

FHLB

117,882

1,429

2.44%


71,727

634

1.78%

Subordinated debentures

29,427

744

5.10%


29,427

626

4.29%

Repurchase Agreements

20,309

10

0.10%


17,467

9

0.10%

Total interest-bearing liabilities

$   1,295,697

6,050

0.94%


$      898,439

2,546

0.57%

Noninterest-bearing deposits

610,265




506,002



Other liabilities

20,408




14,656



Shareholders' Equity

308,585




186,392



Total Liabilities and Shareholders' Equity

$   2,234,955




$   1,605,489











Net interest income and interest rate spread

$ 43,460

4.14%



$ 29,538

3.91%









Net interest margin



4.47%




4.13%









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

** - Average balance includes nonaccrual loans

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

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

Noninterest income








(unaudited - dollars in thousands)

Three months ended June 30,


2019


2018


$ change


% change

Service charges

$    1,552


$    1,359


$       193


14.2%

Net gain on sale of securities

(23)


41


(64)


-156.1%

Net gain on sale of loans

555


474


81


17.1%

ATM/Interchange fees

951


588


363


61.7%

Wealth management fees

911


836


75


9.0%

Bank owned life insurance

252


144


108


75.0%

Tax refund processing fees

550


550


-


0.0%

Other

356


398


(42)


-10.6%

Total noninterest income

$    5,104


$    4,390


$       714


16.3%









Noninterest income


(unaudited - dollars in thousands)



Six months ended June 30,


2019


2018


$ change


% change

Service charges

$    3,008


$    2,493


$       515


20.7%

Net gain on sale of securities

(17)


81


(98)


-121.0%

Net gain on sale of loans

886


807


79


9.8%

ATM/Interchange fees

1,857


1,142


715


62.6%

Wealth management fees

1,758


1,688


70


4.1%

Bank owned life insurance

499


286


213


74.5%

Tax refund processing fees

2,750


2,750


-


0.0%

Other

647


759


(112)


-14.8%

Total noninterest income

$  11,388


$  10,006


$    1,382


13.8%

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

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

Noninterest expense








(unaudited - dollars in thousands)

Three months ended

June 30,




2019


2018


$ change


% change

Compensation expense

$    9,548


$    7,385


$    2,163


29.3%

Net occupancy and equipment 

1,444


1,186


258


21.8%

Contracted data processing

447


2,739


(2,292)


-83.7%

Taxes and assessments

605


479


126


26.3%

Professional services

700


1,483


(783)


-52.8%

Amortization of intangible assets

235


26


209


803.8%

Marketing

367


320


47


14.7%

Other

3,293


2,310


983


42.6%

Total noninterest expense

$  16,639


$  15,928


$       711


4.5%









Noninterest expense




(unaudited - dollars in thousands)





Six months ended

June 30,




2019


2018


$ change


% change

Compensation expense

$  19,353


$  14,759


$    4,594


31.1%

Net occupancy and equipment 

2,947


2,321


626


27.0%

Contracted data processing

866


3,087


(2,221)


-71.9%

Taxes and assessments

1,197


948


249


26.3%

Professional services

1,395


2,035


(640)


-31.4%

Amortization of intangible assets

475


59


416


705.1%

Marketing

707


638


69


10.8%

Other

6,148


4,286


1,862


43.4%

Total noninterest expense

$  33,088


$  28,133


$    4,955


17.6%

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

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

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

Balance Sheet

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

End of period loan balances








(unaudited - dollars in thousands)









June 30,


December 31,






2019


2018


$ Change


% Change

Commercial and Agriculture

$           186,423


$           177,101


$       9,322


5.3%

Commercial Real Estate:








Owner Occupied

218,183


210,121


8,062


3.8%

Non-owner Occupied

530,570


523,598


6,972


1.3%

Residential Real Estate

466,581


457,850


8,731


1.9%

Real Estate Construction

144,448


135,195


9,253


6.8%

Farm Real Estate

36,116


38,513


(2,397)


-6.2%

Consumer and Other

16,449


19,563


(3,114)


-15.9%

Total Loans

$        1,598,770


$        1,561,941


$    36,829


2.4%

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

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

End of period deposit balances








(unaudited - dollars in thousands)









June 30,


December 31,






2019


2018


$ Change


% Change

Noninterest-bearing demand

$             496,541


$             468,083


$      28,458


6.1%

Interest-bearing demand

305,086


261,996


43,090


16.4%

Savings and money market

562,823


562,882


(59)


0.0%

Time deposits

259,484


258,832


652


0.3%

Brokered deposits

8,786


28,100


(19,314)


-68.7%

Total Deposits

$         1,632,720


$         1,579,893


$      52,827


3.3%

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

Asset Quality

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

Allowance for Loan Losses




(dollars in thousands)





June 30,


June 30,


2019


2018

Beginning of period

$         13,679


$         13,134

Charge-offs

(395)


(651)

Recoveries

502


384

Provision

-


-

End of period

$         13,786


$         12,867

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

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

Non-performing Assets




(dollars in thousands)

June 30,


December 31,


2019


2018

Non-accrual loans

$          5,682


$          6,898

Restructured loans

2,689


3,024

Total non-performing loans

8,371


9,922

Other Real Estate Owned

-


-

Total non-performing assets

$          8,371


$          9,922

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

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

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

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

Civista Bancshares, Inc.

Financial Highlights

(unaudited - dollars in thousands, except share amounts)


Consolidated Condensed Statement of Income










Three Months Ended


Six Months Ended


June 30,


June 30,


2019


2018


2019


2018









Interest income

24,926


16,160


49,510


32,084

Interest expense

3,184


1,394


6,050


2,546

Net interest income

21,742


14,766


43,460


29,538

Provision for loan losses

-


-


-


-

Net interest income after provision

21,742


14,766


43,460


29,538

Noninterest income

5,104


4,390


11,388


10,006

Noninterest expense

16,639


15,928


33,088


28,133

Income before taxes

10,207


3,228


21,760


11,411

Income tax expense

1,546


214


3,430


1,408

Net income

8,661


3,014


18,330


10,003

Preferred stock dividends 

164


299


328


602

Net income available 








to common shareholders

8,497


2,715


18,002


9,401









Dividends per common share

$             0.11


$             0.07


$             0.20


$             0.14









Earnings per common share,








basic

$             0.54


$             0.26


$             1.15


$             0.91

diluted

$             0.51


$             0.24


$             1.08


$             0.79









Average shares outstanding,








basic

15,628,537


10,470,839


15,618,154


10,342,763

diluted

16,922,712


12,615,336


16,912,329


12,606,415









Selected financial ratios:








Return on average assets

1.58%


0.78%


1.65%


1.26%

Return on average equity

11.01%


6.42%


11.98%


10.82%

Dividend payout ratio

19.85%


24.32%


17.04%


14.48%

Net interest margin (tax equivalent)

4.49%


4.21%


4.47%


4.13%

 

 

 

 Selected Balance Sheet Items 


(unaudited - dollars in thousands, except share amounts)






 June 30, 


 December 31, 


2019


2018






 (unaudited) 


 (unaudited) 

 Cash and due from financial institutions 

$                  49,839


$                  42,779

 Investment securities 

360,512


347,364

 Loans held for sale 

2,563


1,391

 Loans 

1,598,770


1,561,941

 Less allowance for loan losses 

13,786


13,679

 Net loans 

1,584,984


1,548,262

 Other securities 

20,280


21,021

 Premises and equipment, net 

21,720


22,021

 Goodwill and other intangibles 

85,706


86,203

 Bank owned life insurance 

44,491


43,037

 Other assets 

32,900


26,876

 Total assets 

$            2,202,995


$            2,138,954





 Total deposits 

$            1,632,720


$            1,579,893

 Federal Home Loan Bank advances 

176,300


193,600

 Securities sold under agreements to repurchase 

15,554


22,199

 Subordinated debentures 

29,427


29,427

 Accrued expenses and other liabilities 

24,782


14,937

 Total shareholders' equity 

324,212


298,898

 Total liabilities and shareholders' equity 

$            2,202,995


$            2,138,954





 Shares outstanding at period end 

15,663,059


15,603,499





 Book value per share 

$                    20.10


$                    18.56

 Equity to asset ratio 

14.72%


13.97%





Selected asset quality ratios:




Allowance for loan losses to total loans

0.86%


0.88%

Non-performing assets to total assets

0.38%


0.46%

Allowance for loan losses to non-performing loans

164.69%


137.87%





Non-performing asset analysis




Nonaccrual loans

$                    5,682


$                    6,898

Troubled debt restructurings

2,689


3,024

Other real estate owned

-


-

Total

$                    8,371


$                    9,922

 

 

 

Supplemental Financial Information

(Unaudited - Dollars in thousands except share data)












June 30,


March 31,


December 31,


September 30,


June 30,

End of Period Balances

2019


2019


2018


2018


2018











Assets










Cash and due from banks

$       49,839


$     164,094


$       42,779


$       64,754


$        41,156

Investment securities

360,512


351,006


347,364


318,112


231,013

Loans held for sale

2,563


1,444


1,391


4,025


4,058

Loans

1,598,770


1,573,193


1,561,941


1,515,644


1,180,032

Allowance for loan losses

(13,786)


(13,822)


(13,679)


(13,331)


(12,867)

Net Loans

1,584,984


1,559,371


1,548,262


1,502,313


1,167,165

Other securities

20,280


20,280


21,021


17,774


15,154

Premises and equipment, net

21,720


21,772


22,021


22,518


17,308

Goodwill and other intangibles

85,706


85,955


86,203


85,964


28,342

Bank owned life insurance

44,491


44,239


43,037


42,750


25,411

Other assets

32,900


29,541


26,876


27,325


18,700

Total Assets

$  2,202,995


$  2,277,702


$  2,138,954


$  2,085,535


$  1,548,307











Liabilities










Total deposits

$  1,632,720


$  1,765,801


$  1,579,893


$  1,577,755


$  1,146,172

Federal Home Loan Bank advances

176,300


127,100


193,600


145,100


156,200

Securities sold under agreement to repurchase

15,554


21,970


22,199


18,515


14,230

Subordinated debentures

29,427


29,427


29,427


29,427


29,427

Accrued expenses and other liabilities

24,782


21,347


14,937


25,350


12,430

Total liabilities

1,878,783


1,965,645


1,840,056


1,796,147


1,358,459











Shareholders' Equity










Preferred shares, Series B

9,364


9,364


9,364


10,878


13,250

Common shares

267,275


266,990


266,901


265,324


158,191

Accumulated earnings

56,199


49,421


41,320


35,302


39,898

Treasury shares

(17,235)


(17,235)


(17,235)


(17,235)


(17,235)

Accumulated other comprehensive income(loss)

8,609


3,517


(1,452)


(4,881)


(4,256)

Total shareholders' equity

324,212


312,057


298,898


289,388


189,848











Total Liabilities and Shareholders' Equity

$  2,202,995


$  2,277,702


$  2,138,954


$  2,085,535


$  1,548,307











Quarterly Average Balances










Assets:










Earning assets

$  1,986,841


$  2,017,523


$  1,907,966


$  1,534,039


$  1,427,953

Securities

373,999


365,219


352,412


252,832


247,301

Loans

1,583,533


1,564,208


1,532,012


1,256,680


1,158,956

Liabilities and Shareholders' Equity










Total deposits

$  1,670,247


$  1,807,102


$  1,591,521


$  1,202,419


$  1,190,415

Interest-bearing deposits

1,129,964


1,126,173


1,120,876


816,773


756,289

Other interest-bearing liabilities

186,140


148,891


204,002


228,164


149,433

Total shareholders' equity

315,438


301,656


290,096


205,601


188,330

 

 

(Unaudited - Dollars in thousands except share data)












Three Months Ended


June 30,


March 31,


December 31,


September 30,


June 30,

Income statement

2019


2019


2018


2018


2018











Total interest and dividend income

$         24,926


$         24,584


$         23,707


$         17,886


$         16,160

Total interest expense

3,184


2,865


2,962


2,062


1,394

Net interest income

21,742


21,719


20,745


15,824


14,766

Provision for loan losses

-


-


390


390


-

Noninterest income

5,104


6,284


4,838


3,288


4,390

Noninterest expense

16,639


16,449


16,391


22,156


15,928

Income (loss) before taxes

10,207


11,554


8,802


(3,434)


3,228

Income tax expense (benefit)

1,546


1,885


1,233


(1)


214

Net income (loss)

8,661


9,669


7,569


(3,433)


3,014

Preferred stock dividends

164


164


165


192


299

Net income (loss) available to 










common shareholders

$            8,497


$            9,505


$            7,404


$          (3,625)


$            2,715











Common shares dividend paid

$            1,719


$            1,404


$            1,386


$               971


$               719











Per share data




















Basic earnings per common share

$              0.54


$              0.61


$              0.48


$            (0.31)


$              0.26

Diluted earnings per common share

0.51


0.57


0.45


(0.31)


0.24

Dividends per common share

0.11


0.09


0.09


0.09


0.07

Average common shares outstanding - basic

15,628,537


15,607,655


15,521,404


11,627,093


10,470,839

Average common shares outstanding - diluted

16,922,712


16,901,830


16,898,186


13,271,073


12,615,336











Asset quality










Allowance for loan losses, beginning of period

$         13,822


$         13,679


$         13,331


$         12,867


$         12,814

Charge-offs

(156)


(239)


(119)


(133)


(226)

Recoveries

120


382


77


207


279

Provision

-


-


390


390


-

Allowance for loan losses, end of period

$         13,786


$         13,822


$         13,679


$         13,331


$         12,867











Ratios










Allowance to total loans

0.86%


0.88%


0.88%


0.88%


1.09%

Allowance to nonperforming assets

164.69%


150.60%


137.87%


132.86%


168.36%

Allowance to nonperforming loans

164.69%


150.60%


137.87%


132.86%


168.36%











Nonperforming assets










Nonperforming loans

$            8,371


$            9,178


$            9,140


$         10,034


$            7,642

Other real estate owned

-


-


-


-


-

Total nonperforming assets

$            8,371


$            9,178


$            9,140


$         10,034


$            7,642











Capital and liquidity










Tier 1 leverage ratio

12.44%


11.64%


12.22%


15.37%


12.96%

Tier 1 risk-based capital ratio

15.94%


15.64%


15.30%


15.43%


15.71%

Total risk-based capital ratio

16.78%


16.48%


16.15%


16.29%


16.74%

Tangible common equity ratio (1)

10.89%


9.96%


9.98%


9.70%


9.80%











(1) See reconciliation of GAAP measures below


















































 

Non-GAAP Reconciliation

Tangible Common Equity and Tangible Assets

(Unaudited - Dollars in thousands except share data)












Three Months Ended


June 30,


March 31,


December 31,


September 30,


June 30,

Tangible Common Equity

2019


2019


2018


2018


2018











Total Equity

$   324,212


$   312,057


$   298,898


$   289,388


$   189,848

Less: Preferred Equity

9,364


9,364


9,364


10,878


13,250

Less: Goodwill and intangible assets

84,065


84,299


84,540


84,286


27,572











Tangible common equity

$   230,783


$   218,394


$   204,994


$   194,224


$   149,026











Total Shares Outstanding

15,633,059


15,624,113


15,603,499


15,395,064


10,788,892











Tangible book value per share

$       14.76


$       13.98


$       13.14


$       12.62


$       13.81











Tangible Assets










Total Assets

$2,202,995


$2,277,702


$2,138,954


$2,085,535


$1,548,307

Less: Goodwill and intangible assets

84,065


84,299


84,540


84,286


27,572











Tangible assets

$2,118,930


$2,193,403


$2,054,414


$2,001,249


$1,520,735











Tangible common equity ratio

10.89%


9.96%


9.98%


9.71%


9.80%

 

 

Reconciliation of Non-GAAP Financial Measures

(Unaudited - Dollars in thousands except share data)










Three Months
Ended


Three Months
Ended


Six Months
Ended


Six Months
Ended


June 30,


June 30,


June 30,


June 30,

Adjusted earnings

2019


2018


2019


2018









Income before taxes (GAAP)

10,207


3,228


21,760


11,411

Acquisition and integration expenses

-


3,150


-


3,150

Adjusted earnings, pretax

10,207


6,378


21,760


14,561

Adjusted income tax expense

1,546


876


3,430


2,070

Adjusted net income (Non-GAAP)

8,661


5,503


18,330


12,492

Preferred stock dividends

164


299


328


602

Adjusted net income available to 








common shareholders

$               8,497


$               5,204


$            18,002


$            11,890









Adjusted earnings per common share - basic

$                 0.54


$                 0.50


$                 1.15


$                 1.15

Adjusted earnings per common share - diluted

0.51


0.44


1.08


0.99

Average common shares outstanding - basic

15,628,537


10,470,839


15,618,154


10,342,763

Average common shares outstanding - diluted

16,922,712


12,615,336


16,912,329


12,606,415









Adjusted Efficiency ratio

















Six Months
Ended


Six Months
Ended






June 30,


June 30,






2019


2018













Noninterest expense (GAAP)

33,088


28,133





Acquisition and integration expense

-


(3,150)





Adjusted noninterest expense

33,088


24,983













Net interest income (GAAP)

43,460


29,538





Effect of tax-exempt income

741


470





Adjusted net interest income

44,201


30,008













Noninterest Income - GAAP

11,388


10,006













Adjusted total revenue

55,589


40,014













Adjusted Efficiency ratio

59.5%


62.4%





 

 

 

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

SOURCE Civista Bancshares, Inc.

Welcome to the new Civista Bancshares, Inc. Investor Relations site.