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Press Release: Civista Bancshares, Inc. Announces Fourth Quarter 2020 Financial Results

· 02/05/2021 08:30
Average Balance Analysis (Unaudited - Dollars in thousands) Twelve Months Ended December 31, 2020 2019 Average Yield/ Average Yield/ Assets: balance Interest rate * balance Interest rate * -------------------- ----------- -------- ------ ----------- -------- ------ Interest-earning assets: Loans ** $ 1,953,472 $ 87,777 4.49% $ 1,612,975 $ 84,972 5.27% Taxable securities 183,721 5,359 3.03% 200,074 6,584 3.35% Non-taxable securities 202,982 6,123 4.15% 172,812 5,647 4.36% Interest-bearing deposits in other banks 155,960 606 0.39% 38,359 851 2.22% ----------- -------- ----------- -------- Total interest-earning assets $ 2,496,135 99,865 4.10% $ 2,024,220 98,054 4.95% ----------- -------- ------ ----------- -------- ------ Noninterest-earning assets: Cash and due from financial institutions 77,848 47,472 Premises and equipment, net 22,831 21,946 Accrued interest receivable 9,043 7,088Average Balance Analysis (Unaudited - Dollars in thousands) Three Months Ended December 31, 2020 2019 Average Yield/ Average Yield/ Assets: balance Interest rate * balance Interest rate * -------------------- ----------- -------- ------ ----------- -------- ------ Interest-earning assets: Loans ** $ 2,072,477 $ 22,853 4.39% $ 1,676,769 $ 21,577 5.11% Taxable securities 178,194 1,259 2.93% 190,898 1,429 3.05% Non-taxable securities 207,985 1,534 4.06% 181,741 1,439 4.27% Interest-bearing deposits in other banks 145,305 75 0.21% 20,767 76 1.45% ----------- -------- ----------- -------- Total interest-earning assets $ 2,603,961 25,721 4.03% $ 2,070,175 24,521 4.82% ----------- -------- ------ ----------- -------- ------ Noninterest-earning assets: Cash and due from financial institutions 29,502 29,473 Premises and equipment, net 22,832 22,248 Accrued interest receivable 9,976 7,559 Intangible assets 84,919 85,388 Bank owned life insurance 45,816 44,841 Other assets 35,044 25,829 Less allowance for loan losses (23,614) (14,245) ----------- ----------- Total Assets $ 2,808,436 $ 2,271,268 Liabilities and Shareholders' Equity: -------------------- Interest-bearing liabilities: Demand and savings $ 1,169,152 $ 380 0.13% $ 890,825 $ 712 0.32% Time 289,815 1,083 1.49% 269,674 1,382 2.03% FHLB 125,000 452 1.44% 205,040 871 1.69% Other borrowings 95,820 80 0.33% 543 1 0.73% Subordinated debentures 29,427 188 2.54% 29,427 329 4.44% Repurchase agreements 28,110 7 0.10% 17,898 4 0.09% ----------- -------- ----------- -------- Total interest-bearing liabilities $ 1,737,324 2,190 0.50% $ 1,413,407 3,299 0.93% ----------- -------- ------ ----------- -------- ------ Noninterest-bearing deposits 685,898 500,953 Other liabilities 41,879 27,274 Shareholders' equity 343,335 329,634 ----------- ----------- Total Liabilities and Shareholders' Equity $ 2,808,436 $ 2,271,268 Net interest income and interest rate spread $ 23,531 3.53% $ 21,222 3.89% Net interest margin 3.69% 4.18% * - Average yields are presented on a tax equivalent basis. The tax equivalent effect associated with loans and investments, included in the yields above, was $411 thousand and $386 thousand for the periods ended December 31, 2020 and 2019, respectively. ** - Average balance includes nonaccrual loans-- Earned net income of $10.2 million, or $0.64 per diluted share, for the fourth quarter of 2020, compared to $7.7 million, or $0.47 per diluted share, for the fourth quarter of 2019. -- Earned net income for the year of $32.2 million, or $2.00 per diluted share, compared to $33.2 million, or $2.01 per diluted share, in 2019. -- Earned a record pre-tax, pre-provision net income of $47.2 million for the year, compared to $40.6 million in 2019. See reconciliation of non-GAAP measures at the end of this press release. -- COVID--19 loan deferrals in effect were 4.0% of total loans, net of Paycheck Protection Program ("PPP") loans, at period end, compared to 24.4% on June 30, 2020. The bank has not experienced any specific loan losses attributed to COVID--19 closures in 2020. -- We increased our dividend in January 2021 to $0.12 per quarter which is equivalent to a dividend yield of 2.65% based on the February 2, 2021 market close of $18.11. The quarterly dividend represents an increase of 9.1%, and based on fourth quarter 2020 earnings per share, translates to a dividend payout ratio of 18.8%.

Civista Bancshares, Inc. Announces Fourth Quarter 2020 Financial Results

PR Newswire

SANDUSKY, Ohio, Feb. 5, 2021

SANDUSKY, Ohio, Feb. 5, 2021 /PRNewswire/ -- Civista Bancshares, Inc. (NASDAQ:CIVB) ("Civista") announced its unaudited financial results for the three and twelve months ending December 31, 2020.

Fourth quarter and year-to-date 2020 highlights

"While 2020 will most likely go down as the strangest year of my banking career, it is also one that has shown our mettle. The strategies and concerns we had going into the year changed quickly as the pandemic took hold. Our people rose to the occasion and made 2020 one of the more successful years on record for Civista. While our net income is down slightly from 2019, we recognized record pre-tax-pre-provision net income. We built our allowance for loan losses as the pandemic continued through the year. We have consistently been a conservative bank when it comes to looking at our loan portfolio. While we have downgraded ratings on many loans, we have yet to see any specific loan losses. We have continued to manage capital through our stock repurchase program and an increase in our dividend that was announced in January 2021." said Dennis G. Shaffer, President and CEO of Civista.

Results of Operations:

For the three-month period ended December 31, 2020 and 2019

Net interest income increased $2.3 million, or 10.9%, for the fourth quarter of 2020 compared to the same period of 2019, due to an increase in interest income as well as a decrease in interest expense. Accretion of PPP fees was $2.3 million during the quarter.

Net interest margin decreased 49 basis points to 3.69% for the fourth quarter of 2020, compared to 4.18% for the same period a year ago.

Interest income increased $1.2 million, or 4.9%, for the fourth quarter of 2020. Average yields decreased 79 basis points which resulted in a $3.6 million decrease in interest income. Average earning assets increased $533.8 million, which resulted in a $4.8 million increase in interest income. PPP loans accounted for $242.1 million of the increase in average earning assets at a yield of 3.88%. Removing the impact of PPP loans, the yield on earning assets would have been 9 basis points higher. Included in interest income is $2.3 million of accretion of Paycheck Protection Program ("PPP") fees as well as accretion income associated with purchased loan portfolios of $688 thousand.

Interest expense decreased $1.1 million, or 33.6%, for the fourth quarter of 2020, compared to the same period last year. The average rate paid on interest-bearing liabilities decreased 43 basis points, while average interest-bearing liabilities increased $323.9 million.

For the twelve-month period ended December 31, 2020 and 2019

Net interest income increased $4.6 million, or 5.4%, compared to the same period in 2019.

Interest income increased $1.8 million, or 1.8%, for the twelve months of 2020. The increase in interest income was primarily due to an increase in average earning assets of $471.9 million, partially offset by a decrease in yield of 84 basis points. During the twelve-month period, the Bank had average PPP Loans totaling $172.6 million with an average yield of 3.73%, including amortization of fees. Removing the impact of PPP loans, yields would have been 20 basis points higher.

Interest expense decreased $2.8 million, or 21.7%, for the twelve months of 2020 compared to the same period of 2019. Average interest-bearing liabilities increased $279.3 million, resulting in a $455 thousand increase in interest expense. Average rates decreased 34 basis points, resulting in a $3.3 million decrease in interest expense.

Net interest margin decreased 61 basis points to 3.70% for the twelve months of 2020, compared to 4.31% for the same period a year ago due to an increase in average earning assets as well as a decrease in the yield on earning assets.

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February 05, 2021 08:30 ET (13:30 GMT)