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Press Release: Civista Bancshares, Inc. Announces -4-

· 02/05/2021 08:30
Civista Bancshares, Inc. Financial Highlights (Unaudited, dollars in thousands, except share and per share amounts) Consolidated Condensed Statement of Income Three Months Ended Twelve Months Ended December 31, December 31, 2020 2019 2020 2019 ----------- ----------- ----------- ----------- Interest income $ 25,721 $ 24,521 $ 99,865 $ 98,054 Interest expense 2,190 3,299 10,138 12,954 ----------- ----------- ----------- ----------- Net interest income 23,531 21,222 89,727 85,100 Provision for loan losses 2,250 885 10,112 1,035 ----------- ----------- ----------- ----------- Net interest income after provision 21,281 20,337 79,615 84,065 Noninterest income 7,666 5,627 28,182 22,443 Noninterest expense 16,968 17,128 70,665 66,947 ----------- ----------- ----------- ----------- Income before taxes 11,979 8,836 37,132 39,561 Income tax expense 1,806 995 4,940 5,683 ----------- ----------- ----------- ----------- Net income 10,173 7,841 32,192 33,878 Preferred stock dividends - 157 - 647 ----------- ----------- ----------- ----------- Net income available to common shareholders $ 10,173 $ 7,684 $ 32,192 $ 33,231 Dividends paid per common share $ 0.11 $ 0.11 $ 0.44 $ 0.42 Earnings per common share, basic $ 0.64 $ 0.49 $ 2.00 $ 2.12 diluted $ 0.64 $ 0.47 $ 2.00 $ 2.01 Average shares outstanding, basic 15,915,369 15,796,713 16,129,875 15,652,881 diluted 15,915,369 16,734,391 16,129,875 16,851,740 Selected financial ratios: Return on average assets (annualized) 1.44% 1.37% 1.17% 1.51% Return on average equity (annualized) 11.79% 9.44% 9.57% 10.64% Dividend payout ratio 17.21% 22.16% 22.05% 19.41% Net interest margin (tax equivalent) 3.69% 4.18% 3.70% 4.31% Selected Balance Sheet Items (Dollars in thousands, except share and per share amounts) December 31, December 31, 2020 2019 (unaudited) Cash and due from financial institutions $ 139,522 $ 48,535 Investment securities 364,350 359,690 Loans held for sale 7,001 2,285 Loans 2,057,502 1,708,970 Less: allowance for loan losses (25,028) (14,767) ---------------- ---------------- Net loans 2,032,474 1,694,203 Other securities 20,537 20,280 Premises and equipment, net 22,580 22,871 Goodwill and other intangibles 84,926 85,156 Bank owned life insurance 45,976 44,999 Other assets 45,552 31,538 ---------------- ---------------- Total assets $ 2,762,918 $ 2,309,557 Total deposits $ 2,189,398 $ 1,678,764Non-performing Assets ---------------------------- (dollars in thousands) December 31, December 31, 2020 2019 Non-accrual loans $ 5,399 $ 6,115 Restructured loans 1,897 3,004 ------------ ------------ Total non-performing loans 7,296 9,119 Other Real Estate Owned 31 - ------------ ------------ Total non-performing assets $ 7,327 $ 9,119Allowance for Loan Losses -------------------------- (dollars in thousands) December 31, December 31, 2020 2019 Beginning of period $ 14,767 $ 13,679 Charge-offs (465) (776) Recoveries 614 829 Provision 10,112 1,035 ------------ ------------ End of period $ 25,028 $ 14,767

An important part of capital management are share repurchases. During the second half of 2020, Civista repurchased 154,947 shares for $2.0 million at a weighted average price of $12.94 per share. These repurchases were part of the $13.5 million repurchase authorization which was approved in April 2020. Prior to this plan, Civista repurchased 672,000 shares for $11.4 million, at a weighted average price of $16.90 per share. Year to date, Civista has repurchased a total of 826,947 shares for $13.4 million, at a weighted average price of $16.16 per share. In addition, Civista liquidated 3,808 shares held by employees, at $24.07 per share, to satisfy tax obligations stemming from vesting of restricted shares.

Shareholder Equity

Total shareholders' equity increased $20.0 million, or 6.1%, from December 31, 2019 to December 31, 2020, as a result of a $25.1 million increase in retained earnings and an increase in other comprehensive income of $7.7 million. These increases were partially offset by a $13.5 million repurchase of treasury shares.

Asset Quality

Civista recorded net recoveries of $149 thousand for the twelve months of 2020 compared to net recoveries of $53 thousand for the same period of 2019. The allowance for loan losses to loans was 1.22% at December 31, 2020 and 0.86% at December 31, 2019. Without the PPP loans, the allowance ratio would have been 14 basis points higher.

Non-performing assets at December 31, 2020 were $7.3 million, a 19.7% decrease from December 31, 2019. The non-performing assets to assets ratio decreased to 0.27% from 0.39% at December 31, 2019. The allowance for loan losses to non-performing loans increased to 343.05% from 161.95% at December 31, 2019.

Conference Call and Webcast

Civista Bancshares, Inc. will also host a conference call to discuss the Company's financial results for the fourth quarter of 2020 at 1:00 p.m. ET on Friday, February 5, 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. fourth quarter 2020 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, 2019, 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 $2.8 billion financial holding company headquartered in Sandusky, Ohio. The Company's banking subsidiary, Civista Bank, operates 37 locations in Northern, Central and Southwestern Ohio, Southeastern Indiana and Northern Kentucky. Civista Bancshares, Inc. may be accessed at www.civb.com. The Company's common shares are traded on the NASDAQ Capital Market under the symbol "CIVB".

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