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Civista Bancshares, Inc. Stock Price: Quote, Forecast, Splits & News (CIVB)

Perplexity Finance

Company Profile

Civista Bancshares, Inc. Price & Performance (CIVB)

Stock Performance

Updated Apr 24, 8:00 PM UTC

Civista Bancshares, Inc.

$20.85USD

+$0.07 (+0.34%)

After Hours

-$0.69 (-3.29%)

Open

$21.63

Market Cap

$322.75M

Year High

$23.70

High

$21.63

P/E Ratio

10.4

Year Low

$13.60

Low

$20.20

Dividend Yield

3.12%

Volume

23.77K

Earnings

Report Date

Apr 24, 2025

Reported Revenue

53.7M

Beat +33.16%

Avg 1d Change

2.56%

Report Period

Q1 2025

Reported EPS

0.66

Beat +32%

Implied Move 1d

19.69%

Transcript

13m 53s

Good afternoon. This is Dennis Schaefer, president and CEO of Civista Bancshares. And I would like to thank you for joining us for our first quarter twenty twenty five earnings call. I am joined today by Rich Dutton, SVP of the Company and Chief Operating of the Bank Ian Wynnum, SVP of the company and Chief Financial Officer of the bank and other members of our executive team. Chuck Furcher, EVP of the company and Chief Lending Officer of the bank is on vacation. This morning, we reported net income for the first quarter of $10,200,000 or $0.66 per diluted share which represents a $3,800,000 or 60% increase over our first quarter of twenty twenty four and a $275,000 increase over our linked quarter. This also represents an increase in pre provision net revenue of $4,300,000 or 47% over our first quarter in 2024 and a $1,400,000 or 11.9% increase over our linked quarter. Core deposit funding continues to be a priority and we were pleased that our deposit funding [indiscernible] grew organically by over $67,000,000 during the quarter, which allowed us to continue reducing our reliance on brokered funding. We believe this shift toward more relationship funding contributes to the overall value of our core deposit franchise.

15m 38s

I continue to be encouraged by our ability to remain disciplined in pricing both our deposits and loans through this interest rate cycle. Net interest income for the quarter was $32,800,000 which represents an increase of $1,400,000 or 4.5% compared to our linked quarter. The increase was attributable to our earning asset yield increasing six basis points to 5.71%. And our overall funding costs decreasing by 11 basis points to 2.31%. Our decline in funding costs was largely attributable to a $150,000,000 in brokered CDs that matured in late December I mentioned on our last call. They carried a rate of 5.08%, and we were able to replace and reduce them by laddering $125,000,000 in brokered CDs over the subsequent twelve months at a blended rate of 4.37% representing a savings of 71 basis points. Similarly, we had a $150,000,000 in brokered CDs that matured in March that carried a rate of 5.18%. We were also able to replace and reduce these deposits with $125,000,000 of CDs laddered over the next twelve months at a blended rate of 4.26% representing a savings of 92 basis points. While this had little impact on our first quarter results, we anticipate that it will further reduce our overall funding cost and lead to further margin expansion.

17m 28s

We have solid loan demand in each of our markets, However, we continue to be disciplined in our approach to loan and lease pricing which has had the intended impact of beauty and growth. Our loan and lease portfolio grew at an annualized rate of 2.8% during the first quarter, We anticipate continuing to hold loan and lease rates higher as we work to maintain our loan to deposit ratio ideally within a range of 90% to 95%. The result of our continued discipline in managing both our loan and lease pricing as well as our funding costs was the continued expansion of our margin which grew by 15 basis points during the quarter to 3.51%. Our ROA for the quarter was 1% continuing our strength of improving our ROA in each of the past four quarters. Our ROE for the quarter was 10.39%. Earlier this month, we announced the renewal of our stock repurchase program The program authorizes management to repurchase up to $13,500,000 outstanding shares and expires on 04/15/2026. While we have not been active in repurchasing shares, and remain committed to increasing our tangible common equity. We feel it is important to have the ability to repurchase shares should it become prudent to do so.

18m 55s

Last week we also announced a quarterly dividend of $0.17 per share based on the quarter end market close of $19.54 this represents an annualized yield of 3.48%. During the quarter, our non interest expense was $27,100,000 which represents a $1,200,000 or 4.1% decline from our linked quarter and is a result of improvement in nearly every non interest expense category. We continue to focus on controlling those expenses that are within our control The largest decline was in compensation related expenses and was primarily due to five fewer FTEs, a reduction in benefit costs, and an increase in the amount of compensation deferred related to loan origination. Compared to the prior year's first quarter, non interest expense declined $315,000 or 1.1% and while the improvement did not include as many categories the results had a similar impact. The largest decline in comparison to the first quarter of the prior year was also attributable to 19 fewer FTEs a reduction in benefit costs and an increase in the amount of compensation deferred relating to loan originations. This reduction in expense was partially offset by an increase in professional services related to projects and the conversion of our lease accounting and servicing system.

20m 32s

Non interest income declined 1,200,000.0 or 12.8% in comparison to the linked quarter and $3.96 6,000 or 4.8% in comparison to the first quarter of the prior year. The primary drivers of the decrease from our linked quarter were a $655,000 decline in gains on the sale of loans which are made up of mortgages and loans and leases originated our leasing division due to typically less mortgage and leasing originations during the first quarter, coupled with the impact of higher interest rates. A $314,000 decline in ATM and interchange revenue due to the shift from pre holiday to post holiday debit card use. A $124,000 decline in wealth management fees due to market declines during the quarter, as assets under management decreased and a $384,000 decline in bullae revenue as we received $314,000 in proceeds from a death benefit in the prior quarter. These declines were offset by an increase of 6 and $16,000 in lease revenue and residual income generated by our leasing division. The primary drivers for the decline from the prior year's first quarter attributable to a $396,000 decline in gains on the sale of loans due to the same seasonality and high interest rates previously mentioned and lower lease rate related fees which are included in other income.

22m 8s

The combination of increased revenue and disciplined expense control resulted in an efficiency ratio of 64.9% for the quarter compared to 68.3% for the linked quarter and 73.8% for the prior year's first quarter. Turning our focus to the balance sheet. For the quarter, total loans and leases grew by $22,800,000 This represents an annualized growth rate of 2.8%. While we experienced increases in commercial and ag both owner occupied and non owner occupied commercial real estate and residential real estate we saw small declines in all other loan categories. As we shared on previous calls, we continue to price commercial and ag loan opportunities aggressively and are being more conservative how we price commercial real estate opportunities. We try to manage the overall mix in our loan portfolio. The loans we originate for our portfolio are virtually all adjustable rate loans and our leases all have maturities of five years or less. New and renewed commercial loans were originated at an average rate of 7.16% during the quarter, which is similar to our origination rate during the linked quarter. Loans secured by office buildings make up 5.25% of our total loan portfolio. As we have stated previously, these loans are not secured by high rise metro office buildings rather they are predominantly secured by single or two story offices located outside of Central Business District.

23m 57s

Along with year to date loan production, our pipelines are solid and our undrawn construction lines were $226,000,000 at March 31. We continue to see loan opportunities in each of our markets, and we anticipate loan growth to be in the mid single digit range for the balance of 2025 However, loan demand may be impacted the longer the economic uncertainty persists. On the funding side, total deposits increased $27,000,000 or an annualized growth rate of 3.2%. However, if we back out brokered deposits, our deposits balance grew by 67,100,000,000.0 or 2.5% for the quarter which we believe is the result of our focus on deepening customer relationships. We did see some migration from non interest bearing accounts into higher rate deposit accounts during the quarter, but our cost of deposits excluding broker deposits declined by 12 basis points from the linked quarter. Our deposit base remains fairly granular with our average deposit account excluding CDs approximately $28,000 With respect to FDIC insured deposits, excluding Civista's own deposit accounts, 13.1% or $419,800,000 of our deposits were in excess of the FDIC limits at quarter end. Our cash and unpledged securities at March $31,523,700,000.0 which more than covers these uninsured deposits.

25m 42s

Other than $568,000,000 of public funds, which are primarily operating accounts, with the various municipalities across our footprint, we had no deposit concentration at March 31. At quarter end, our loan to deposit ratio was 95.8% Our commercial bankers treasury management officers, private bankers, and retail staff continue to have success gathering additional deposits from our commercial small business and retail customers as evidenced by our organic deposit growth. We believe our low cost deposit franchise is one of Civista's most valuable characteristics contributing significantly to our solid net interest margin overall profitability. At March 31, our security portfolio was $648,500,000 which represents 15.6% of our balance sheet. The interest rate environment continues to put pressure on bond portfolios At March 31, all of our securities were classified as available for sale and had $60,000,000 of unrealized losses associated with that. This represented a decrease in unrealized losses of $2,500,000 since December 31, 2024. We ended the quarter with our Tier one leverage ratio at 8.66% which is deemed well capitalized for regulatory purposes. Our tangible common equity ratio was 6.59% at March 31. An increase from 6.43% at 12/31/2024. So this is earnings continue to create capital and our overall goal remains to grow our capital to a level adequate to support organic growth.

27m 39s

We did increase our dividend in the prior quarter although we have not purchased any shares during the past five quarters, we continue to believe our stock is a value. While our capital levels remain strong, recognize our tangible common equity ratio still screams low. Our previous guidance remains that we would like to rebuild our TCE ratio back to between 7077.5%, To that end, we will continue to focus on earnings and will balance the payment of dividends and any stock repurchases with building capital to support our growth. During the quarter, we made a $1,600,000 provision We had charge offs of 976,000 of which $800,000 was related to one of the non performing credits we discussed in the fourth quarter. That loan is expected to pay off today. The balance of the provision was attributable to loan growth and the impact historically low prepayments in our loan portfolio have had on our CECL model. Our ratio of the allowance from credit losses to total loans is 1.3% at March 31, 2025, which is consistent with 1.29% at 12/31/2024. Other than a general concern over the impact of macroeconomic uncertainties, the economy across Ohio, Southeastern Indiana is showing no signs of deterioration our credit quality remains strong.

29m 18s

In summary, we are very pleased with the continued expansion of our net interest margin and our ability to control non interest expense during the quarter. We are pleased with our team's success in attracting more lower cost funding and anticipate low to mid single digit loan growth for the balance of 2025 as we temper loan growth to match our ability to fund that growth at a reasonable cost. Overall, 2025 is off to a solid start and our focus continues to be on creating shareholder value. Thank you for your attention this afternoon. And your investment. And now we will be happy to address any questions that you may have. Thank you.

30m 3s

Ladies and gentlemen, we will now conduct a question and answer session. Tone phone. You will hear a one tone prompt acknowledging your request. Your request will be pulled in the order they are received. If you would like to decline from the calling process, please press the pound key. Please ensure you lift the handset. And if you you are using a speakerphone before pressing any keys. One moment for your questions, please. Our first question comes from the line of Justin Crowley from Piper Sandler. Your line is open. [indiscernible] [indiscernible] John. Just wanted to start on some of the margin inputs. Obviously, a lot of success in moving core deposit costs lower in the quarter with some of that brokered repricing. I guess outside of the brokered you'd mentioned, repricing in the quarter down to the 4.2%, 4.3% range. How much opportunity is there left in the back book to see if funding move lower? Has that largely run through at this point? And then how does that counteract against how aggressive you need to be on incremental funding?

31m 25s

Yeah, I think there's still opportunity there, Justin. On the deposit book, we do anticipate maybe four to five basis points again this this coming quarter of margin expansion as we pretty much have been able to on the higher interest rate stuff that we just organically had other than the brokered, we have been pretty much that's almost been as Fed has cut rate. We've cut immediately to almost on 100% beta on that stuff. We also have opportunity on the loan side. There's $110,000,000 that we'll reprice over the next two quarters So those rates, we should pick up a couple of hundred basis points as those loans reprice. And then new loan yields are still going on, as I said in my call, in the 715716725 range. So we think there's opportunity there. So we think there's opportunity to continue to expand the margin in the near term over the next quarter or two.

32m 34s

Okay. So you mentioned that four to five base points of perhaps NIM pickup in the second quarter. So you think that that type of acceleration could sort of continue through the balance of the year, at least for the next couple of quarters? And then does it maybe stabilize just to throw a number out there that $360,000,000 level? How are you thinking about that?

32m 55s

It does start to stabilize as we get deeper into the year. I think third quarter we had a little calculator that we try to run different scenarios on. Think we're anticipating maybe four to five basis points in the second quarter and two to three basis points in the third quarter right now. That's if rates stay fairly similar to where they're at today.

33m 24s

Okay. And so how sensitive would that be to potential cuts out of the Fed?

33m 31s

That model is in cut. We can model in cuts. I guess we've modeled in Ian, you want to speak to that? [indiscernible] So we factored in a cut in June, another one in September. And so the numbers that Dennis referenced include those. So it's in that range of about four to five points. So points second quarter. An additional two to three basis points of expansion in the third quarter.

33m 56s

Okay. That's super helpful. I appreciate that. And then just moving over to expenses. I believe you had talked about some elevated spend last quarter tied to some staff turnover and then the leasing conversion project you had mentioned. Did a lot of that or did most of that normalize back down in the first quarter? And if so, how should we think about further investment into areas like digital, potentially offsetting the decline in the base that you saw this quarter?

34m 25s

Yes. The professional fees did not they'll go away going into the second quarter, some of them. But as we alluded to, we do are investing back into a couple of some technology things that and other investments and we generally sometimes use consultants for those projects. Ian or Rich, you want to touch more on the expense side? Yeah, happy to. This is Ian. So from where we were in Q4 in the fourth quarter, we had some adjustments within accruals both incentive accrual as well as just other accruals that related to FDIC expense. That made Q4 a little bit higher than normal. Q1, we started to normalize. We slapped some seasonal or onetime type expenses or professional fees as well as items related to annual audits. And annual meeting expenses. So we expect the second quarter to come in around the same level as the first quarter. That will offset the reduction in professional fees that Dennis just mentioned, but also include our annual merit increases that we give to our employees. So that will keep us about flat from where we are now, maybe up a little bit. And then in the third and fourth quarter, we'll have some of that additional expense coming in for the reinvestment into the company.

35m 48s

Both in software expenses, professional fees and some marketing expense. As we start to do the digital online account opening. And Justin, just to give some color around some of the expense reductions that we had, they were attributable to the elimination of our after hour call center and our call center. So we saved some costs there. On that we were spending for the after hour stuff. And some employee costs We also closed a branch in the fourth quarter so we really saw that impact of some FTE saves and there, we renegotiated our insurance and really kept the same level of coverage and picked up $160,000 with something like that. We did a record purge that eliminated some accounts that we were paying for. On our Jack Henry system. So that's where all that expense reduction, a lot of it came from in first quarter. And we're going to continue to look for those things The team has done a really good job of identifying things. So we've identified a few more things. But also we're we need to do that because we're investing back into the company. Okay.

37m 14s

And then, I guess just from a budgeting standpoint, just putting that all together, is there a scenario where you're able to keep costs for the full year flat just for the full year when I compare it to 2024, is that within the realm of possibility? If I think about maybe kind of stable expenses next quarter? And then maybe a tick higher back closer to call $28,000,000 a quarter through the back half. Is that realistic?

37m 42s

It is, yes. We expect us to be less than $28,000,000 in the second half. Per quarter. Although merit increases usually happen in the second quarter. But we got some things that we think help offset that as well. Okay, great. Was right. Was saying we are making our are focused on revenue generating investments.

38m 9s

Okay. I appreciate the color there. I will step back. Thanks so much, guys. Thanks, Brandon.

38m 19s

Our next question comes from the line of Brandon O'Sullivan from Hofty Group. Your line is open.

38m 26s

Hey, good afternoon folks. Hope you're doing well. Hey, Brandon. How are you? Good. Good. Good.

38m 31s

Thanks for all the detail you you just offered on margin and expenses. That's super helpful. Maybe turning to the fee base. Seemed like you was a bit lighter than I was thinking for the quarter. And down a bit year over year. Can you just kind of walk through the outlook for the various line items and kind of wrap it an overall expectation for fee income in the near term? Thank you.

38m 58s

Yes, we do think there'll be a bounce back here coming in the second quarter. Mortgage is is usually late for us in that first quarter. It was a little bit lighter than the first quarter a year ago, but it wasn't way off. And we do expect that to pick up. Pipelines appear to be pretty good. So we do expect that to pick up some. And then the leasing has been it's been a little choppy trying to get a handle on that. So but we do expect that was a little bit lighter than we had also anticipated. And we do expect that volume to pick back up as we go into the next as we're into this second quarter. Yeah. This is Ian. Just adding to that on top of that would be the wealth management fees that are still behaving as we would expect, except the AUMs is dropping because of the market volatility. Yeah, yeah, of course. That makes sense.

40m 2s

Okay, excellent. Maybe sticking to the topic of fees, just more of a modeling question here. Do you folks happen to have the the gain on sales split between mortgage and CLF for the quarter, both in terms of volumes and fee revenue?

40m 21s

Yes. I have that in front of me. So, of the $600,000 gain on sale in the first quarter, about 45% of that was from the leasing finance business, 55% for mortgage. That works out to be about $270,000 per CLF and $330,000 per mortgage. In terms of the volume that was sold on mortgages, about $19,000,000 And on the volume that was sold, the leasing, about 7,600,000.0 So mortgage is comparable to the first quarter of twenty twenty four, which was $20,000,000 at the time 19,000,000 for this quarter. And the leasing was $7,600,000 a little bit less than this time last year. Was $12,600,000 in the first quarter of last year. What we did see was the gain on sale on the mortgage side softening We saw an average of 1.75% of the gain on sale in the first quarter of this year compared to 2.1 the first quarter of last year. Okay, that's helpful color. I appreciate it.

41m 29s

For taking the questions.

41m 32s

Thank you. Thanks, Brennan.

41m 36s

Our next question comes from the line of Terry McFoy from Stephens. Your line is open.

41m 43s

Hi. Good afternoon, guys. Hi, Terry. Hi.

41m 48s

The loan yields the increase in the loan yields up nine basis points, really nice to see. And I'm just wondering, were there any interest recoveries or anything contributing to that? Or was that just new loans repricing higher and then kind of fixed rates do doing the same thing. There was nothing unusual in there. So it's just new loans repricing higher Our team's really staying disciplined in their pricing. So they've really done a nice job there. And we think we'll continue to get some benefit there. As I mentioned, 110,000,000 of loads repricing over the next two quarters and then new stuff going on at those rates we think there's room for improvement there. Yeah. No. Real nice to see. And then last quarter, the two loans the multifamily loan under contract and the C and I loan that was gonna be back in compliance. Dennis, you mentioned one of them. Which one of the two loans was gonna be resolved tomorrow? And then what's the status on the other one?

43m

The multifamily should be resolved today. Or today or tomorrow, we should say. We're pretty confident that's going to go through. It was the extent we had thought it might be cleared up again in the first quarter, but buyer wanted to extend that. It's a participation loan. The banks got together and said, we'll extend it, but you got to put a significant deposit down to do that. And they went hard with a significant amount of money to be able to extend that. So real confident on that. I was hoping to have the answer that it had paid off. Before this call. The other loan is more of that, as I mentioned on the last call, more of a community loan. And we're not at all concerned with it. It's just taking a little bit of time to to work through some of their issues. The project was bonded. So we're waiting to hear from the the bonding company. And then hopefully we'll continue to kind of continue to work, but we'll have greater clarity on that hopefully in the next three or four weeks. Okay.

44m 18s

And then maybe one more. Dennis, what are you hearing from kind of borrowers or real estate developers? Any sense of kind of cautiousness in putting things on pause given the tariffs and the trade situation?

44m 35s

Yes. So we've been reaching out to different customers and it's really it's been very enlightening. There are some businesses that view it as a positive and others view it as a negative. I would say the sentiment has been kind of a wait and see type of attitude for most of our borrowers. At least as to what the long term effect will be I do think it will slow some of the CapEx spending from some of our business from some of our business borrowers in the first here in the near term this quarter, maybe next quarter, as they just wait to see what happens. But so we think it impacts maybe people that are selling the finished product more so than those that are selling a piece or a part. Those customers seem like as we've talked to they're able to pass on that cost. Person selling that in end piece or that finished product to the end user they seemed a little bit more concerned whether they're going to be able to pass that on or not. But overall, just think it's more of a wait and see type approach. And I do think it will slow some CapEx spending.

45m 59s

Great. Thanks for your insight.

46m 3s

Thanks, Terry.

46m 5s

Our next question comes from the line of Manuel Navas from D. A. Davis. Davidson. Your line is open.

46m 12s

Hey, I appreciate the color on kind of sentiment. Is that evident in current pipeline? You said there's a little bit of CapEx spending slowing a bit. Is that already Is that already showing up near term on the second quarter? And then can you kind of talk about the range of growth What could drive to the high end of your guide and what could drive to the low end of your guide? On the loan book, you talking about, Manuel?

46m 38s

Yes.

46m 38s

Yes, loan book. Yeah, Okay.

46m 40s

Okay.

46m 41s

I don't think it's in the current pipe pipeline. I don't think it has much impact. That $231,000,000 I think those people are far enough along and they're not stopping all of a sudden. So I don't think it has. But I think from this point on, slow a little bit of that CapEx spending. As far as what our economies are pretty good here in Ohio. It's Southeastern Indiana. There's just a lot of activity still going on. Most of the Central Ohio and then Cincinnati market and stuff, they still are getting a lot of technology driven companies, Microsoft, has announced a significant investment into Central Ohio, Google and Amazon and they're all building building facilities down there. And then you got Andrew Roll, the defense contract, and stuff. So as those things take hold, think it's going to continue to to fuel the economy and the housing demand. And you're to see a pickup There's a lot more that we see builders building product and stuff So I think things like that will continue to fuel things. And it benefits really the whole state because as you have companies like Vanderbilt or Intel or something, they've got suppliers and those suppliers tend to locate closer to where their [indiscernible] building at.

48m 21s

And that helps It may not be in that exact market, but it could be three or four counties away, which benefits when our footprint covers really the whole state and Southeastern Indiana. So I think those things will help us as we move forward. In our Northeast Ohio market, that been a really good market for us. And Sherwin Williams just completed their building, downtown building, their new headquarter building. They're moving into and and they'll add a few jobs to that And it's things like that, I think, that this will continue to help our overall economy here for the for the short term. And Will, this is Rich. I know Dennis talked about last call and I think on this call too. I mean, a governor for us, I mean the thing that kind of gauges whether it be more loans or less loans is really our ability to fund those loans. And whether or not we can attract the low cost deposits. We've had good success if we continue to have that success. And if we're able to implement the digital or online account opening, successfully like we intend to in the back half of the year.

49m 33s

I mean, really would, I think allow us to kind of hit the upper levels of kind of the projections that I shared. Right.

49m 41s

That's helpful. In your So the no you should write down is it only gets better. Well, we have had three consecutive quarters of pretty good deposit growth. Even though if you look at just the deposit growth we had this quarter, remember that we reduced those brokered deposits by 50,000,000 or $60,000,000 What is contemplated from the lease business in your growth guide and the fee guide? I know there's a little bit of a bounce back in fees. This is also a seasonally slower leasing quarter.

50m 19s

Just kind of talk through kind of expectations for the year from leasing. Well, I think we're projecting $115,000,000 or total of originations. And I think through the first quarter, that was the slowest quarter for them. So I think we what we do in leasing revenue production 16, seventeen, 20,000,000 We don't have that number but that would have been their slowest quarter. So we do anticipate that that to pick up as the year goes on.

50m 54s

If that gives you any we don't have the exact numbers, but if that gives you any feel for that. Okay.

51m 3s

That's helpful. And continue to tell them about half. Sell about half. Okay. That was the other piece. Okay.

51m 9s

That's helpful.

51m 11s

A lot of my other questions have been kind of asked and answered. So I appreciate the commentary today.

51m 17s

Okay, thank you.

51m 26s

Our next question comes from the line of Emily Lee from KBW. Your line is open.

51m 34s

Hi, everyone. This is Emily stepping in for Tim Switzer. You for taking my question.

51m 38s

Hi, Emily. How are you?

51m 42s

So I wanted to ask about deposit repricing. What are your expectations for deposit repricing if we were to get a scenario with saying no rate cuts? I know you mentioned that you factored in two rate cuts into your guidance, so just curious on your thoughts there.

51m 56s

Yeah, so we have this is Ian, Emily. So we have in terms of regional CDs that are coming up for maturity, we're probably somewhere in the neighborhood of about hundred million to $140,000,000 a quarter that are coming up for maturing. We should be picking up maybe 10 to 15 basis points on each of those as the comfortable through renewals We have put our highest rate on the shorter term. So our highest rate right now is on a seven month We plan on keeping it that way just with all the uncertainty and volatility. That'll keep us protected from that standpoint. Standpoint. Also, with our online account opening software, or solution that we'll be launching in July. We expect our deposit cost would go up slightly, but our total cost of funding should decline. So we'll raise our own deposits organically through probably some CDs and stuff and pay off that more borrowed money [indiscernible] brokered deposits.

53m 3s

Okay, great. Thank you. And given that credit metrics improved a bit this quarter, can you give some details on your expectations for credit going forward, especially given the macro uncertainty?

53m 16s

We still feel good about our loan book. Mean, delinquencies are actually down quarter over quarter and they're still pretty close to historically low levels. There's always some one offs and stuff. We've had some repricing of [indiscernible] AMA of some of the we have repriced higher and that's caused some loans to be downgraded because the rates are higher and the cash flow is doesn't quite meet our standards, but it's not significantly below [indiscernible] And in the same regards, although we've moved some credits in, we're moving credits out. So we feel good where the credit is. Allowance is really healthy. We have 1.3% in the allowance. And we could charge off. We have We we basically could we have eleven years of we took our charge offs that we've had, we got an eleven year run on that. If we took out all, took out is that the Chris That's the net charge offs. That's the net charge offs. Okay. The last twelve months, yes. So you take the net charge offs over the last twelve months, if you took what those were, there's eleven years in that allowance.

54m 45s

That's great. Thanks so much.

54m 48s

Thank you. There are no further questions at this time. Mr. Schafer, please continue.

54m 59s

Okay. Well, thank you, everyone. I just want to recap kind of in summary just to tell you how pleased I am with just the with the quarter. I want to thank everyone for joining the call. Our quarter results were really attributable to the hard work that all of our team put in over the past several months and continues to put in. While we're pleased with the results of the first quarter we are confident that our strong core deposit franchise and our proven disciplined approach to managing the company really positions us well for future success. So I just thank you again for joining the call and look forward to talking to everyone in the next few months to share our second quarter results. So thank you for your time today.

55m 48s

Ladies and gentlemen, this concludes the conference call for today. Thank you for participating. You may now disconnect.

Key Insights

CIVB reported Q1 2025 net income of $10.2 million ($0.66 per diluted share), a 60% increase over Q1 2024, with pre-provision net revenue up 47% year-over-year; net interest income rose 4.5% quarter-over-quarter, driven by higher asset yields and lower funding costs.
Core deposit funding grew organically by over $67 million, reducing reliance on brokered deposits and supporting a 15 basis point expansion in net interest margin to 3.51%; management anticipates further margin expansion of 4-5 basis points in Q2 and 2-3 basis points in Q3, even factoring in two expected Fed rate cuts.
Loan and lease portfolio grew at an annualized rate of 2.8% in Q1, with management guiding for mid-single-digit loan growth for the remainder of 2025, contingent on continued success in attracting low-cost deposits and the rollout of digital account opening.
Noninterest expense declined 4.1% quarter-over-quarter and 1.1% year-over-year, driven by lower compensation costs (fewer FTEs, reduced benefits, increased deferred comp), branch closure, and renegotiated insurance; full-year expenses are expected to remain below $28 million per quarter despite planned investments in technology and marketing.
Credit quality remains strong with allowance for credit losses at 1.3% of loans; delinquency levels are historically low, and management expects stable credit metrics going forward despite macro uncertainty. The company renewed its stock repurchase program and increased its dividend to $0.17 per share (3.48% yield).

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Savista Bancshares achieved strong earnings growth, margin expansion, and improved core deposit funding.

Income Statement

Revenue

	2020	2021	2022	2023	2024
Revenue	$116M	$125M	$137M	$158M	$152M
Cost of Revenue	$0	$0	$0	-$2M	$0
Gross Profit	$116M	$125M	$137M	$160M	$152M
Gross Profit %	100%	100%	100%	101%	100%
R&D Expenses	$0	$0	$0	$0	$0

Cash Flow

Net Income

	2020	2021	2022	2023	2024
Net Income	$32M	$41M	$39M	$43M	$32M
Dep. & Amort.	$3.2M	$2.9M	$5.8M	$12M	$11M
Def. Tax	-$2.9M	$1.3M	$483K	-$675K	-$1.9M
Stock Comp.	$617K	$702K	$819K	$984K	$871K
Chg. in WC	-$3.8M	$2M	-$22M	$7.2M	$0

2020

2021

2022

2023

2024

Net Income

$32M

$41M

$39M

$43M

$32M

Dep. & Amort.

$3.2M

$2.9M

$5.8M

$12M

$11M

Def. Tax

-$2.9M

$1.3M

$483K

-$675K

-$1.9M

Stock Comp.

$617K

$702K

$819K

$984K

$871K

Chg. in WC

-$3.8M

$2M

-$22M

$7.2M

Balance Sheet

Cash

	2020	2021	2022	2023	2024
Cash	$140M	$266M	$45M	$60M	$65M
ST Investments	$363M	$560M	$615M	-$52M	$265M
Cash & ST Inv.	$503M	$826M	$660M	$8.3M	$8.9M
Receivables	$0	$0	$48M	$0	$59M
Inventory	-$149M	-$273M	-$45M	$0	$0

2020

2021

2022

2023

2024

Cash

$140M

$266M

$45M

$60M

$65M

ST Investments

$363M

$560M

$615M

-$52M

$265M

Cash & ST Inv.

$503M

$826M

$660M

$8.3M

$8.9M

Receivables

$48M

$59M

Inventory

-$149M

-$273M

-$45M

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Financial information provided by Financial Modeling Prep. Options data provided by Unusual Whales. Live transcripts provided by Quartr. Reported revenue and EPS data from Earnings powered by FinChat.io. All data is provided for informational purposes only, and is not intended for trading purposes or financial, investment, tax, legal, accounting or other advice. · See all tickers.

Overview
Earnings
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Income Statement
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Earnings

Report Date

Apr 24, 2025

Reported Revenue

53.7M

Beat +33.16%

Avg 1d Change

2.56%

Report Period

Q1 2025

Reported EPS

0.66

Beat +32%

Implied Move 1d

19.69%

Transcript

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25m 42s

27m 39s

29m 18s

30m 3s

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32m 34s

32m 55s

33m 24s

Okay. And so how sensitive would that be to potential cuts out of the Fed?

33m 31s

33m 56s

34m 25s

35m 48s

37m 14s

37m 42s

38m 9s

Okay. I appreciate the color there. I will step back. Thanks so much, guys. Thanks, Brandon.

38m 19s

Our next question comes from the line of Brandon O'Sullivan from Hofty Group. Your line is open.

38m 26s

Hey, good afternoon folks. Hope you're doing well. Hey, Brandon. How are you? Good. Good. Good.

38m 31s

38m 58s

40m 2s

40m 21s

41m 29s

For taking the questions.

41m 32s

Thank you. Thanks, Brennan.

41m 36s

Our next question comes from the line of Terry McFoy from Stephens. Your line is open.

41m 43s

Hi. Good afternoon, guys. Hi, Terry. Hi.

41m 48s

43m

44m 18s

44m 35s

45m 59s

Great. Thanks for your insight.

46m 3s

Thanks, Terry.

46m 5s

Our next question comes from the line of Manuel Navas from D. A. Davis. Davidson. Your line is open.

46m 12s

46m 38s

Yes.

46m 38s

Yes, loan book. Yeah, Okay.

46m 40s

Okay.

46m 41s

48m 21s

49m 33s

I mean, really would, I think allow us to kind of hit the upper levels of kind of the projections that I shared. Right.

49m 41s

50m 19s

50m 54s

If that gives you any we don't have the exact numbers, but if that gives you any feel for that. Okay.

51m 3s

That's helpful. And continue to tell them about half. Sell about half. Okay. That was the other piece. Okay.

51m 9s

That's helpful.

51m 11s

A lot of my other questions have been kind of asked and answered. So I appreciate the commentary today.

51m 17s

Okay, thank you.

51m 26s

Our next question comes from the line of Emily Lee from KBW. Your line is open.

51m 34s

Hi, everyone. This is Emily stepping in for Tim Switzer. You for taking my question.

51m 38s

Hi, Emily. How are you?

51m 42s

51m 56s

53m 3s

Okay, great. Thank you. And given that credit metrics improved a bit this quarter, can you give some details on your expectations for credit going forward, especially given the macro uncertainty?

53m 16s

54m 45s

That's great. Thanks so much.

54m 48s

Thank you. There are no further questions at this time. Mr. Schafer, please continue.

54m 59s

55m 48s

Ladies and gentlemen, this concludes the conference call for today. Thank you for participating. You may now disconnect.

Key Insights

CIVB reported Q1 2025 net income of $10.2 million ($0.66 per diluted share), a 60% increase over Q1 2024, with pre-provision net revenue up 47% year-over-year; net interest income rose 4.5% quarter-over-quarter, driven by higher asset yields and lower funding costs.
Core deposit funding grew organically by over $67 million, reducing reliance on brokered deposits and supporting a 15 basis point expansion in net interest margin to 3.51%; management anticipates further margin expansion of 4-5 basis points in Q2 and 2-3 basis points in Q3, even factoring in two expected Fed rate cuts.
Loan and lease portfolio grew at an annualized rate of 2.8% in Q1, with management guiding for mid-single-digit loan growth for the remainder of 2025, contingent on continued success in attracting low-cost deposits and the rollout of digital account opening.
Noninterest expense declined 4.1% quarter-over-quarter and 1.1% year-over-year, driven by lower compensation costs (fewer FTEs, reduced benefits, increased deferred comp), branch closure, and renegotiated insurance; full-year expenses are expected to remain below $28 million per quarter despite planned investments in technology and marketing.
Credit quality remains strong with allowance for credit losses at 1.3% of loans; delinquency levels are historically low, and management expects stable credit metrics going forward despite macro uncertainty. The company renewed its stock repurchase program and increased its dividend to $0.17 per share (3.48% yield).

Civista Bancshares, Inc. Price & Performance (CIVB)

Stock Performance

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Market Cap

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High

P/E Ratio

Year Low

Low

Dividend Yield

Volume

Earnings

Report Date

Reported Revenue

Avg 1d Change

Report Period

Reported EPS

Implied Move 1d

Transcript

Key Insights

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What's Happening

Peers

Recent Transcripts

Income Statement

Cash Flow

Balance Sheet

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Latest News

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Earnings

Report Date

Reported Revenue

Avg 1d Change

Report Period

Reported EPS

Implied Move 1d

Transcript

Key Insights