CBI and Civista (collectively, the “Companies”) are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory-and possibly additional discretionary -actions by regulators that, if undertaken, could have a direct material effect on the financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Companies must meet specific capital guidelines that involve quantitative measures of the Companies’ assets, liabilities, and certain off-balance-sheet items as calculated under U.S. GAAP, regulatory reporting requirements, and regulatory capital standards. The Companies’ capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors.

Quantitative measures established by regulatory capital standards to ensure capital adequacy require the Companies to maintain minimum amounts and ratios (set forth in the following table) of total and Tier 1 capital to risk-weighted assets, common equity Tier 1 capital to total risk-weighted assets, and Tier 1 capital to average assets. Management believes, as of December 31, 2023, that the Companies met all capital adequacy requirements to which they were subject.

As of December 31, 2023, and 2022, the most recent notification from the Federal Reserve Bank categorized Civista as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, Civista must maintain minimum total risk-based capital, Tier 1 risk-based capital, common equity Tier 1 risk-based capital, and Tier 1 leverage ratios as set forth in the table below. There are no conditions or events since that notification that management believes have changed Civista’s category.

The Company’s and Civista’s actual capital levels and minimum required capital levels at December 31, 2023 and 2022 were as follows:


											To Be Well
											Capitalized Under
						For Capital					Prompt Corrective
	Actual					Adequacy Purposes					Action Purposes
	Amount		Ratio			Amount		Ratio			Amount		Ratio
2023
Total Risk Based Capital
Consolidated	$	429,080		14.4	%	$	237,604		8.0	%	n/a		n/a
Civista		400,047		13.5			236,568		8.0		$	295,710		10.0	%
Tier I Risk Based Capital
Consolidated		318,322		10.7			178,203		6.0		n/a		n/a
Civista		363,033		12.3			177,426		6.0			236,568		8.0
CET1 Risk Based Capital
Consolidated		288,895		9.7			133,652		4.5		n/a		n/a
Civista		363,033		12.3			133,069		4.5			192,211		6.5
Leverage
Consolidated		318,322		8.8			145,489		4.0		n/a		n/a
Civista		363,033		10.0			145,245		4.0			181,556		5.0
2022
Total Risk Based Capital
Consolidated	$	395,125		14.1	%	$	217,681		8.0	%	n/a		n/a
Civista		366,377		12.9			219,357		8.0		$	274,196		10.0	%
Tier I Risk Based Capital
Consolidated		293,164		10.4			163,261		6.0		n/a		n/a
Civista		337,866		11.9			164,517		6.0			219,357		8.0
CET1 Risk Based Capital
Consolidated		263,736		9.4			122,446		4.5		n/a		n/a
Civista		337,866		11.9			123,388		4.5			178,227		6.5
Leverage
Consolidated		293,164		8.7			131,479		4.0		n/a		n/a
Civista		337,866		10.0			131,240		4.0			164,050		5.0

CBI’s primary source of funds for paying dividends to its shareholders and for operating expense is the cash accumulated from dividends received from Civista. Payment of dividends by Civista to CBI is subject to restrictions by Civista’s regulatory agencies. These restrictions generally limit dividends to the current and prior two years retained earnings as defined by the regulations. In addition, dividends may not reduce capital levels below minimum regulatory capital requirements. At December 31, 2023, Civista had $56,886 of net profits available to pay dividends to CBI without requiring regulatory approval.