10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2021

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission file number 001-36192

Civista Bancshares, Inc.

(Exact name of registrant as specified in its charter)

Ohio	34-1558688
State or other jurisdiction of incorporation or organization	(IRS Employer Identification No.)

100 East Water Street, Sandusky, Ohio 44870

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code (419) 625 - 4121

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common shares, no par value	CIVB	The NASDAQ Stock Market LLC (NASDAQ Capital Market)

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes  ☐    No  ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    Yes  ☐    No  ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.  ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    Yes  ☐    No  ☒

The aggregate market value of the voting and non-voting common equity held by non-affiliates of the registrant based upon the closing market price as of June 30, 2021 was $323,533,981. For this purpose, shares held by non-affiliates include all outstanding common shares except those beneficially owned by the directors and executive officers of the registrant.

As of February 24, 2022, there were 14,888,915 common shares, no par value, of the registrant issued and outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant’s Annual Report to Shareholders for the fiscal year ended December 31, 2021 (the “2021 Annual Report”) are incorporated by reference into Parts I and II of this Form 10-K. Portions of the registrant’s Proxy Statement for the registrant’s 2022 Annual Meeting of Shareholders to be held on April 19, 2022 (the “2022 Proxy Statement”) are incorporated by reference into Part III of this Form 10-K.​​​​​​​

INDEX

Part I
Item 1.	Business	3
Item 1A.	Risk Factors	21
Item 1B.	Unresolved Staff Comments	34
Item 2.	Properties	34
Item 3.	Legal Proceedings	34
Item 4.	Mine Safety Disclosures	34
Part II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	35
Item 6.	Reserved	35
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	35
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	35
Item 8.	Financial Statements and Supplementary Data	35
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	36
Item 9A.	Controls and Procedures	36
Item 9B.	Other Information	36
Item 9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	36
Part III
Item 10.	Directors, Executive Officers and Corporate Governance	37
Item 11.	Executive Compensation	37
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	37
Item 13.	Certain Relationships and Related Transactions, and Director Independence	37
Item 14.	Principal Accountant Fees and Services	37
Part IV
Item 15.	Exhibits and Financial Statement Schedules	38
Item 16	Form 10-K Summary	40
Signatures		41

PART I

Item 1. Business

General Development of Business

CIVISTA BANCSHARES, INC. (“CBI”) was organized under the laws of the State of Ohio on February 19, 1987 and is a registered financial holding company under the Gramm-Leach-Bliley Act of 1999, as amended (the “GLBA”). CBI’s office is located at 100 East Water Street, Sandusky, Ohio. CBI and its subsidiaries are sometimes referred to together as the “Company”. The Company had total consolidated assets of $3,011,983 at December 31, 2021.

CIVISTA BANK (“Civista”), owned by the Company since 1987, opened for business in 1884 as The Citizens National Bank. In 1898, Civista was reorganized under Ohio banking law and was known as The Citizens Bank and Trust Company. In 1908, Civista surrendered its trust charter and began operation as The Citizens Banking Company. The name Civista Bank was introduced during the first quarter of 2015 to solidify our dual Citizens/Champaign brand and distinguish ourselves from the many other banks using the “Citizens” name in our existing and prospective markets. Civista maintains its main office at 100 East Water Street, Sandusky, Ohio and operates branch banking offices in the following Ohio communities: Sandusky (2), Norwalk (2), Berlin Heights, Huron, Port Clinton, Castalia, New Washington, Shelby (2), Willard, Greenwich, Plymouth, Shiloh, Akron, Dublin, Plain City, Russells Point, Urbana (2), West Liberty, Quincy, Dayton (3), Beachwood, and in the following Indiana communities: Lawrenceburg (3), Aurora, West Harrison, Milan, Osgood and Versailles. Civista also operates loan production offices in Westlake, Ohio and Fort Mitchell, Kentucky. Civista and its consolidated subsidiaries as discussed below, accounted for 99.8% of the Company’s consolidated assets at December 31, 2021.

FIRST CITIZENS INSURANCE AGENCY, INC. (“FCIA”) was formed in 2001 to allow the Company to participate in commission revenue generated through its third party insurance agreement. Assets of FCIA were not significant as of December 31, 2021.

WATER STREET PROPERTIES (“WSP”) was formed in 2003 to hold properties repossessed by CBI subsidiaries. Assets of WSP were not significant as of December 31, 2021.

FC REFUND SOLUTIONS, INC. (“FCRS”) was formed in 2012 to facilitate payment of individual state and federal income tax refunds. The operations of FCRS were discontinued June 30, 2019 as a result of inactivity due to FCRS no longer being necessary to facilitate the Company’s continuing participation in the tax refund processing program.

FIRST CITIZENS INVESTMENTS, INC. (“FCI”) was formed in the fourth quarter of 2007 as a wholly-owned subsidiary of Civista to hold and manage its securities portfolio. The operations of FCI are located in Wilmington, Delaware.

FIRST CITIZENS CAPITAL LLC (“FCC”) was also formed in the fourth quarter of 2007 as a wholly-owned subsidiary of Civista to hold inter-company debt that is eliminated in consolidation. The operations of FCC were discontinued December 31, 2021 as a result of inactivity.

CIVB RISK MANAGEMENT, INC. (“CRMI”), a wholly-owned subsidiary of CBI which was formed and began operations on December 26, 2017, is a Delaware-based captive insurance company which insures against certain risks unique to the operations of the Company and for which insurance may not be currently available or economically feasible in today’s insurance marketplace. CRMI pools resources with several other similar insurance company subsidiaries of financial institutions to spread a limited amount of risk among themselves. CRMI is subject to regulations of the State of Delaware and undergoes periodic examinations by the Delaware Division of Insurance.

CBI is a financial holding company. Through its subsidiary bank, the Company is primarily engaged in the business of community banking, which accounts for substantially all of its revenue, operating income and assets. Refer to the Consolidated Financial Statements on pages 30 through 35 of the 2021 Annual Report for additional information.

Narrative Description of Business

General

The Company’s primary business is incidental to the subsidiary bank and its subsidiaries. Civista, through its locations in the Ohio counties of Erie, Crawford, Champaign, Cuyahoga, Franklin, Huron, Logan, Madison, Montgomery, Ottawa, Richland and Summit, in the Indiana counties of Dearborn and Ripley and in the Kentucky county of Kenton, conducts a general banking business that involves collecting customer deposits, making loans, purchasing securities, and offering Trust services.

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Interest and fees on loans accounted for 67% of total revenue for 2021, 69% of total revenue for 2020, and 70% of total revenue for 2019. The Company’s primary focus of lending continues to be real estate loans, both residential and commercial in nature. Residential real estate mortgage loans comprised 22% of the total loan portfolio in 2021, 22% of the total loan portfolio in 2020 and 27% of the total loan portfolio in 2019. Commercial real estate loans comprised 56% of the total loan portfolio in 2021, 48% in 2020, and 49% in 2019. Commercial and agriculture loans comprised 12% of the total loan portfolio in 2021, 20% in 2020, and 12% in 2019. Civista’s loan portfolio does not include any foreign-based loans, loans to lesser-developed countries or loans to CBI or its other subsidiaries.

On a parent company only basis, CBI’s primary source of funds is the receipt of dividends paid by its subsidiaries, principally Civista. The ability of Civista to pay dividends is subject to limitations under various laws and regulations and to prudent and sound banking principles. Generally, subject to certain minimum capital requirements, Civista may declare a dividend without the approval of the State of Ohio Division of Financial Institutions (the “ODFI”) unless the total of the dividends in a calendar year exceeds the total net profits of the bank for the year combined with the retained profits of the bank for the two preceding years. At December 31, 2021, Civista had $59,772 of accumulated net profits available to pay dividends to CBI without approval of the ODFI.

The Company’s business is not seasonal, nor is it dependent on a single or small group of customers.

Business Strategy

The Company’s strategy is to compete for business by providing high quality, personal service to customers, enhanced local presence and customer access to our decision-makers, rapid decision-making, and competitive interest rates and fees. We develop and maintain business relationships by taking on leadership roles in our communities through the involvement of our experienced commercial and retail bankers, management team and Board of Directors. We believe we will continue to drive growth and increase profitability, while maintaining our high level of asset quality, by doing the following:

Expand Relationships in Our Communities

We emphasize relationship banking by maintaining and growing our customers and contacts with personal interaction by our bankers and management teams in the communities that we serve. We strive to do this by offering a full suite of competitive banking products through efficient and varied delivery channels tailored to the needs of our customers and potential customers. Civista, through its Civista Wealth Management division, also offers investment and advisory solutions. Our approach is personalized and focused on what our clients need. We provide individuals, families, business and non-profits with personalized investment management, 401-(k) advisory services for employers, financial planning, trust services, and tailored lending.

Measured Loan Portfolio Growth while Aiding Borrowers Impacted by COVID-19

Our loan growth strategy is to originate high quality commercial loans with strong sponsors and favorable credit metrics on the retail side in order to achieve measured growth.

We believe it is critical to have as a strategic initiative a plan to work with our customers, in the short and medium terms, in navigating the impacts of the ongoing COVlD-19 pandemic. As part of this plan, we are focused on the inevitable changing needs and preferences of our customers in a post-COVID-19 environment. We have utilized several resources at our disposal, including loan modifications and payment deferrals, to proactively aid our borrowers.

During 2020, Civista implemented a temporary loan deferral program for customers impacted by COVID-19 pursuant to which Civista provided loan deferrals on an aggregate of 813 loans totaling $431.3 million. As of December 31, 2021, Civista had seven loans totaling $5.1 million and representing 0.3 percent of loans outstanding, excluding Paycheck Protection Program (“PPP”) loans, that remained on COVID-19 loan deferral. The COVID-19 loan modifications are not classified as TDRs because they satisfied certain requirements as set forth under the Coronavirus Aid, Relief, and Economic Security Act of 2020, as amended (the “CARES Act”) to not be classified as TDRs. Further details regarding these modifications are provided in the table on page 60 of the Company’s 2021 Annual Report to Shareholders. For loans subject to the deferral program, each borrower is required to resume making regularly scheduled loan payments at the end of the modification period and the deferred amounts will be moved to the end of the loan term.

Core Deposit Growth

We plan to continue to focus on growing our core, commercial operating and retail, non-maturity deposit base with an emphasis on relationship banking. Our business model focuses on gaining the majority of our customers’ banking relationships by implementing

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many best practices for community banks, including personalized service and technology. We believe that these generate “stickier” deposit accounts with larger average balances than might be attracted otherwise. From time to time we also use pricing techniques in our efforts to attract banking relationships having larger than average balances.

Leverage Our Residential Mortgage Banking Infrastructure

We seek to leverage our mortgage banking infrastructure to support the origination of residential mortgage loans for sale into the secondary market, Mortgage loan originations and sales activity are strategies utilized to support growth in our non-interest income, while also serving to help manage the Company’s exposure to interest rate risk through the sale of longer-duration, fixed-rate loans into the secondary market.

Improve Our Operating Efficiency

Expense discipline is a key strategy to improve operating efficiency and contribute to earnings growth. We also strive to operate more efficiently by incorporating technology into our client offerings.

Maintain Robust Capital and Liquidity Levels

The Company’s capital position provides a source of strength and continues to significantly exceed all regulatory capital guidelines as demonstrated by the December 31, 2021 Tier 1 Leverage ratios of the Company and Civista of 10.2 percent and 10.8 percent, respectively. We plan to continue to maintain robust capital reserves, in part due to the risks and uncertainties associated with the COVID-19 pandemic.

In addition to our robust capital levels, we maintain significant sources of both on- and off-balance sheet liquidity and plan to continue to do so. At December 31, 2021, our liquid assets included $255.2 million of short-term cash and equivalents supplemented by $559.9 million of investment securities classified as available for sale which can be readily sold or pledged as collateral, if necessary. In addition, we had the capacity to borrow additional funds totaling $581.5 million from the Federal Home Loan Bank of Cincinnati at December 31, 2021.

Ensure the Adequacy of Our Allowance for Credit Losses

The economic implications of the COVID-19 pandemic on our business and the resulting impact on our asset quality are difficult to fully predict at this time. Notwithstanding this uncertainty, our reserve levels have remained adequate with total allowance amounting to $26.6 million at December 31, 2021.

Market Area and Competition

At December 31, 2021, our primary market area consisted of the counties in which we currently operate branches, and loan production offices, including Erie, Crawford, Champaign, Cuyahoga, Franklin, Huron, Logan, Madison, Montgomery, Ottawa, Richland and Summit Counties in Ohio, Dearborn and Ripley Counties in Indiana and Kenton County in Kentucky. Our lending is concentrated in these markets and our predominant sources of deposits are the communities in which our offices are located as well as the neighboring communities.

The banking business is highly competitive. We face substantial competition both in attracting deposits and in originating loans. We compete with numerous financial institutions, including large regional financial institutions, community banks, thrifts and credit unions operating without our market area. Nontraditional sources of competition for loan and deposit dollars come from captive auto finance companies, mortgage banking companies, internet banks, brokerage companies, insurance companies and direct mutual funds. As a result of their size, resources and ability to achieve economies of scale, certain of our competitors offer a broader range of products and services than we offer, as well as higher lending limits, which may adversely affect the ability of Civista to compete.

Products and Services

We offer a broad range of deposit and loan products and other banking services. These include personal and commercial checking accounts, retirement accounts, money market accounts, time and savings accounts, safe deposit boxes, wire transfers, access to automated teller services, internet banking, ACH origination, telephone banking, and mobile/digital banking. Civista also offers remote deposit capture banking for both retail and business customers, providing the ability to electronically scan and transmit checks for deposit.

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Time deposits consist of certificates of deposit, including those held in IRA accounts. Reciprocal deposits are offered through Civista’s participation in the Certificate of Deposit Account Registry Service® (CDARS) and Insured Cash Sweep (ICS) programs offered through Promontory Interfinancial Network, LLC. Customers who are Federal Deposit Insurance Corporation (“FDIC”) insurance sensitive are able to place large dollar deposits with Civista and Civista uses either outlet to place those funds into certificates of deposit or money markets issued by other banks in the Network. This occurs in increments of less than the FDIC insurance limits so that both the principal and interest are eligible for complete FDIC insurance coverage. The FDIC currently considers these funds as brokered deposits.

We offer commercial and personal loans on a secured and unsecured basis, revolving lines of credit, commercial mortgage loans, and residential mortgages on both primary and secondary residences, home equity loans, bridge loans and other personal purpose loans. However, we are not and have not historically been a participant in the sub-prime lending market.

Commercial loans are loans made for business purposes and are primarily secured by collateral such as cash balances with Civista, business assets including accounts receivable, inventory and equipment, and liens on commercial real estate.

Construction loans are loans to finance the construction of commercial or residential properties secured by first liens on such properties. Commercial real estate loans include loans secured by first liens on completed commercial properties, including multi-family properties, to purchase or refinance such properties. Residential mortgages include loans secured by first liens on residential real estate to purchase or refinance primary and secondary residences. Home equity loans and lines of credit include loans secured by first or second liens on residential real estate for primary or secondary residences.

Consumer loans are made to individuals who qualify for auto loans, cash reserve, and installment loans. Our consumer loan portfolio includes unsecured overdraft lines of credit and personal loans as well as loans secured by savings accounts and certificates of deposit on deposit with Civista.

Our portfolio lending activities include the origination of one- to four-family first mortgage loans, primarily in our designated market area. The fixed-rate residential mortgage loans that we originate for portfolio generally meet the secondary mortgage market standards. As a complement to our residential one- to four-family portfolio lending activities, we operate a mortgage banking platform which supports the origination of one- to four-family mortgage loans that generally meet the secondary mortgage market standards. Such loans are generally originated by and sourced from the same resources and markets as those loans originated and held in our portfolio.

Through our Civista Wealth Management division we offer investment advisory services to individuals, families, businesses and non-profits with personalized investment management, 401(k) advisory services for employers, financial planning, and trust services.

Human Capital Resources

Our employees are vital to our success in the financial services industry. As a human-capital intensive business, the long-term success of our company depends on our people. Our goal is to ensure that we have the right talent, in the right place, at the right time. We do that through our commitment to attracting, developing and retaining our employees.

We strive to attract individuals who are people-focused and share our values. We have a comprehensive program dedicated to selecting new talent and enhancing the skills of our employees. In our recruiting efforts, we strive to have a diverse group of candidates to consider for our roles. To that end, we have strong relationships with a variety of industry associations that represent diverse professionals and partner with schools in the communities we serve to offer internship opportunities to students interested in the financial industry.

We have designed a compensation structure that we believe is attractive to our current and prospective employees. We also offer our employees the opportunity to participate in a variety of professional and leadership development programs. Our programs include a variety of industry, product, technical, professional, business development, leadership and regulatory topics. These programs are available online and in-person. In addition, we encourage all employees to be involved in the communities we serve through various volunteer activities.

We seek to retain our employees by using their feedback to create and continually enhance programs that support their needs. We use company-wide surveys to solicit feedback from our employees. We have a formal annual goal setting and performance review process for our employees. We promote a values-based culture, an important factor in retaining our employees. Our training, to share and communicate our culture to all employees, plays an important part in this process. We are committed to having a diverse

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workforce, and an inclusive work environment is a natural extension of our culture. We are committed to ensuring that all our employees feel welcomed, valued, respected and heard so that they can fully contribute their unique talents for the benefit of our customers, their careers, our company and our communities. We have recently established a Diversity, Equity and Inclusion Council (“DEI Council”). This company-wide diversity and inclusion advisory council stewards the Company’s efforts and provides guidance on priorities. This council is composed of employees from all areas of our Company and locations where we operate.

We monitor and evaluate various turnover and attrition metrics throughout our organization. Our annualized voluntary turnover is relatively low, as is the case for turnover of our top performers, a record which we attribute to our strong values-based culture, commitment to career development, and attractive compensation and benefit programs.

Civista employs approximately 441 full-time equivalent employees to whom a variety of benefits are provided. CBI has no employees. CBI and its subsidiaries are not parties to any collective bargaining agreements. Management considers its relationship with its employees to be good.

Supervision and Regulation

CBI and its subsidiaries are subject to extensive supervision and regulation by federal and state agencies. The regulation of financial holding companies and their subsidiaries is intended primarily for the protection of consumers, depositors, borrowers, the Deposit Insurance Fund (the “DIF”) and the banking system as a whole, and not for the protection of shareholders. Applicable laws and regulations restrict permissible activities and investments and require actions to protect loan, deposit, brokerage, fiduciary and other customers, as well as the DIF. These laws and regulations also may restrict the ability of CBI to pay dividends to its shareholders, to repurchase its common shares or to receive dividends from Civista, and impose capital adequacy and liquidity requirements.

The following is a summary of the regulatory agencies that supervise and regulate CBI and Civista and the statutes and regulations that have, or could have, a material impact on the Company’s business. This discussion is qualified in its entirety by reference to such statutes and regulations. The statutes and regulations applicable to the Company are continually under review by the United States Congress and state legislatures and federal and state regulatory agencies, and a change in statutes, regulations or regulatory policies applicable to the Company could have a material effect on the Company’s business.

The Bank Holding Company Act: As a financial holding company, CBI is subject to regulation under the Bank Holding Company Act of 1956, as amended (the “BHCA”), and the examination and reporting requirements of the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”). Under the BHCA, CBI is subject to periodic examination by the Federal Reserve Board and is required to file periodic reports regarding its operations and any additional information that the Federal Reserve Board may require. The Federal Reserve Board also has extensive enforcement authority over financial and bank holding companies, including the ability to assess civil money penalties, issue cease and desist and removal orders, and require that a financial or bank holding company divest subsidiaries, including its subsidiary banks.

Under applicable law and Federal Reserve Board policy, a financial or bank holding company is expected to act as a source of strength to each of its subsidiary banks. The Federal Reserve Board may require a financial or bank holding company to contribute additional capital to an undercapitalized subsidiary bank and may disapprove of the payment of dividends to shareholders if the Federal Reserve Board believes the payment of such dividends would be an unsafe or unsound practice.

The BHCA generally limits the activities of a bank holding company to banking, managing or controlling banks, furnishing services to or performing services for its subsidiaries and engaging in any other activities that the Federal Reserve Board has determined to be so closely related to banking or to managing or controlling banks as to be a proper incident to those activities. In addition, the BHCA requires every bank holding company to obtain the approval of the Federal Reserve Board prior to acquiring all or substantially all of the assets of any bank or another financial or bank holding company, acquiring direct or indirect ownership or control of more than 5% of the voting shares of any bank not already majority-owned by it, or merging or consolidating with another financial or bank holding company.

In April 2020, the Federal Reserve Board adopted a final rule to revise its regulations related to determinations of whether a company has the ability to exercise a controlling influence over another company for purposes of the BHCA. The final rule expands and codifies the presumptions for use in such determinations. By codifying the presumptions, the final rule provides greater transparency on the types of relationships that the Federal Reserve Board generally views as supporting a facts-and-circumstances determination that one company controls another company. The Federal Reserve Board’s final rule applies to questions of control under the BHCA, but does not extend to the Change in Bank Control Act.

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Gramm-Leach-Bliley Act (“GLBA)”: The GLBA permits qualifying bank holding companies to elect to become financial holding companies and thereby affiliate with securities firms and insurance companies and engage in other activities that are financial in nature if (i) the holding company is well capitalized and well managed and (ii) each of the holding company’s subsidiary banks is well capitalized under the FDIC’s Deposit Insurance Corporation Act of 1991 prompt corrective action provisions, is well managed, and has at least a satisfactory rating under the Community Reinvestment Act (the “CRA”). In March, 2000, CBI became a financial holding company. No regulatory approval is required for a financial holding company to acquire a company, other than a bank or a savings association, engaged in activities that are financial in nature or incidental to activities that are financial in nature, as determined by the Federal Reserve Board.

The GLBA defines “financial in nature” to include:

• securities underwriting, dealing and market making;

• sponsoring mutual funds and investment companies;

• insurance underwriting and agency;

• merchant banking; and

• activities that the Federal Reserve Board has determined to be closely related to banking.

If a financial holding company or a subsidiary bank fails to maintain all requirements for the holding company to maintain financial holding company status, material restrictions may be placed on the activities of the financial holding company and its subsidiaries and on the ability of the holding company to enter into certain transactions and obtain regulatory approvals for new activities and transactions. The financial holding company could also be required to divest of subsidiaries that engage in activities that are not permitted for bank holding companies that are not financial holding companies. If restrictions are imposed on the activities of a financial holding company, the existence of such restrictions may not be made publicly available pursuant to confidentiality regulations of the bank regulatory agencies.

Transactions with Affiliates, Directors, Executive Officers and Shareholders: Transactions between Civista and its affiliates, including CBI, are subject to Sections 23A and 23B of the Federal Reserve Act, and Federal Reserve Board Regulation W, which generally limit the extent to which Civista may engage in “covered transactions” with affiliates and require that the terms of such transactions be the same, or at least as favorable, to Civista as the terms provided in a similar transaction between Civista and an unrelated party. The term “covered transaction” includes the making of loans to an affiliate, the purchase of assets from an affiliate, the issuance of a guarantee on behalf of an affiliate, the purchase of securities issued by an affiliate and other similar types of transactions.

A bank’s authority to extend credit to executive officers, directors and greater than 10% shareholders, as well as entities such persons control, is subject to Sections 22(g) and 22(h) of the Federal Reserve Act and Regulation O promulgated thereunder by the Federal Reserve Board. Among other things, these loans must be made on terms (including interest rates charged and collateral required) substantially similar to those offered to unaffiliated individuals or be made as part of a benefit or compensation program and on terms widely available to employees, and must not involve a greater than normal risk of repayment. In addition, the amount of loans a bank may make to these affiliated persons is based, in part, on the bank’s capital position, and specified approval procedures must be followed in making loans which exceed specified amounts.

Federal Deposit Insurance Corporation (“FDIC”): The FDIC is an independent federal agency which insures the deposits of federally-insured banks and savings associations up to certain prescribed limits and safeguards the safety and soundness of financial institutions. The general insurance limit is $250,000 per separately insured depositor. This insurance is backed by the full faith and credit of the United States Government.

As insurer, the FDIC is authorized to conduct examinations of and to require reporting by insured institutions, including Civista, to prohibit any insured institution from engaging in any activity the FDIC determines to pose a threat to the DIF, and to take enforcement actions against insured institutions. The FDIC may terminate insurance of deposits of any institution if the FDIC finds that the institution has engaged in unsafe and unsound practices, is in an unsafe or unsound condition or has violated any applicable law, regulation, rule, order or condition imposed by the FDIC or other regulatory agency.

The FDIC assesses a quarterly deposit insurance premium on each insured institution based on risk characteristics of the institution and may also impose special assessments in emergency situations. The premiums fund the DIF. Pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”), the FDIC has established 2.0% as the designated reserve ratio (“DRR”), which is the amount in the DIF as a percentage of all DIF insured deposits. In March 2016, the FDIC

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adopted final rules designed to meet the statutory minimum DRR of 1.35% by September 30, 2020, the deadline imposed by the Dodd-Frank Act. The Dodd-Frank Act requires the FDIC to offset the effect on insured institutions with assets of less than $10 billion of the increase in the statutory minimum DRR to 1.35% from the former statutory minimum of 1.15%. Although the FDIC’s rules reduced assessment rates on all banks, they imposed a surcharge on banks with assets of $10 billion or more to be paid until the DRR reached 1.35%. The DRR met the statutory minimum of 1.35% on September 30, 2018. As a result, the previous surcharge imposed on banks with assets of $10 billion or more was lifted. In addition, preliminary assessment credits have been determined by the FDIC for banks with assets of less than $10 billion, which had previously contributed to the increase of the DRR to 1.35%. On June 30, 2019, the DRR reached 1.40%, and the FDIC applied credits for banks with assets of less than $10 billion (“small bank credits”) beginning September 30, 2019. As of June 30, 2020, the DRR fell below the minimum DRR to 1.30%. As a result, the FDIC adopted a restoration plan requiring the restoration of the DRR to 1.35% within eight years (September 30, 2028). This restoration plan maintained the scheduled assessment rates for all insured institutions. As of September 30, 2021, the DRR was 1.27%. The FDIC rules further changed the method of determining risk-based assessment rates for established banks with less than $10 billion in assets to better ensure that banks taking on greater risks pay more for deposit insurance than banks that take on less risk.

The FDIC is authorized to prohibit any insured institution from engaging in any activity that poses a serious threat to the insurance fund and may initiate enforcement actions against a bank, after first giving the institution’s primary regulatory authority an opportunity to take such action. The FDIC may also terminate the deposit insurance of any institution that has engaged in or is engaging in unsafe or unsound practices, is in an unsafe or unsound condition to continue operations or has violated any applicable law, order or condition imposed by the FDIC.

COVID-19 Legislation and Initiatives: In response to the novel COVID-19 pandemic (“COVID-19”), the Coronavirus Aid, Relief, and Economic Security Act of 2020, as amended (the “CARES Act”), was signed into law on March 27, 2020, to provide national emergency economic relief measures. Many of the CARES Act’s programs are dependent upon the direct involvement of U.S. financial institutions, such as CBI and Civista, and have been implemented through rules and guidance adopted by federal departments and agencies, including the U.S. Department of Treasury, the Federal Reserve Board and other federal banking agencies, including those with direct supervisory jurisdiction over CBI and Civista. Furthermore, as COVID-19 evolves, federal regulatory authorities continue to issue additional guidance with respect to the implementation, lifecycle, and eligibility requirements for the various CARES Act programs as well as industry-specific recovery procedures for COVID-19. In addition, it is possible that Congress will enact supplementary COVID-19 response legislation, including amendments to the CARES Act or new bills comparable in scope to the CARES Act. For example, on December 27, 2020, the Consolidated Appropriations Act, 2021 (the “CAA”) was signed into law, which, among other things, allowed certain banks to temporarily postpone implementation of the current expected credit loss model (accounting standard), which is described below. The Company is continuing to assess the impact of the CARES Act and other statues, regulations and supervisory guidance related to COVID-19.

The CARES Act amended the loan program of the Small Business Administration (the “SBA”), in which Civista participates, to create a guaranteed, unsecured loan program, the Paycheck Protection Program (the “PPP”), to fund operational costs of eligible businesses, organizations and self-employed persons during COVID-19. These loans are eligible to be forgiven if certain conditions are satisfied and are fully guaranteed by the SBA. In June 2020, the Paycheck Protection Program Flexibility Act was enacted, which, among other things, gave borrowers additional time and flexibility to use PPP loan proceeds. After previously being extended by Congress, the application deadline for PPP loans expired on May 31, 2021. No collateral or personal guarantees were required for PPP loans. In addition, neither the government nor lenders have been permitted to charge the recipients of PPP loans any fees. On December 27, 2020, the President signed into law omnibus federal spending and economic stimulus legislation titled the “Consolidated Appropriations Act, 2021” that included the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act (the “HHSB Act”). Among other things, the HHSB Act renewed the PPP, allocating $284.45 billion for both new first-time PPP loans under the existing PPP and the expansion of existing PPP loans for certain qualified, existing PPP borrowers. In addition to extending and amending the PPP, the HHSB Act also creates a new grant program for “shuttered venue operators”. As a participating lender in the PPP, Civista continues to monitor legislative, regulatory, and supervisory developments related thereto.

On September 29, 2020, the federal bank regulatory agencies issued a final rule that neutralizes the regulatory capital and liquidity coverage ratio effects of participating in certain COVID-19 liquidity facilities due to the fact there is no credit or market risk in association with exposures pledged to such facilities. As a result, the final rule supports the flow of credit to households and businesses affected by COVID-19.

On December 2, 2020, the federal bank regulatory agencies issued an interim final rule that provides temporary relief for specified community banking organizations related to certain regulations and reporting requirements as a result, in large part, of their growth in size from the response to COVID-19. Community banking organizations are subject to different rules and requirements based on their risk profile and asset size. Due to their involvement in federal COVID-19 response programs (such as the PPP) and other

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lending that supports the U.S. economy, many community banking organizations experienced rapid and unexpected increases in their sizes, which were generally expected to be temporary. The temporary increase in size could have subjected community banking organizations to new regulations or reporting requirements. However, community banking organizations, such as CBI and Civista, under $10.0 billion in total assets as of December 31, 2019 were permitted to use asset data as of December 31, 2019, to determine the applicability of various regulatory asset thresholds during calendar years 2020 and 2021. As such, it was not until January 1, 2022 that asset growth again triggered new regulatory requirements for these community banking organizations.

Consumer Financial Protection Bureau: The Dodd-Frank Act established the Consumer Financial Protection Bureau (the “CFPB”), which regulates consumer financial products and services and certain financial services providers. The CFPB is authorized to prevent unfair, deceptive and abusive acts or practices and seeks to ensure consistent enforcement of laws so that consumers have access to fair, transparent and competitive markets for consumer financial products and services. Since it was established the CFPB has exercised extensive rulemaking and interpretive authority.

Consumer Protection Laws and Regulations: Banks are subject to regular examination to ensure compliance with federal consumer protection statutes and regulations, including, but not limited to, the following:

• The Equal Credit Opportunity Act (prohibiting discrimination in any credit transaction on the basis of any of various criteria);

• The Truth in Lending Act (requiring that credit terms are disclosed in a manner that permits a consumer to understand and compare credit terms more readily and knowledgeably);

• The Fair Housing Act (making it unlawful for a lender to discriminate in its housing-related lending activities against any person on the basis of certain criteria);

• The Home Mortgage Disclosure Act (requiring financial institutions to collect data that enables regulatory agencies to determine whether financial institutions are serving the housing credit needs of the communities in which they are located); and

• The Real Estate Settlement Procedures Act (requiring that lenders provide borrowers with disclosures regarding the nature and cost of real estate settlements and prohibits abusive practices that increase borrowers’ costs).

The banking regulators also use their authority under the Federal Trade Commission Act to take supervisory or enforcement action with respect to unfair or deceptive acts or practices by banks that may not necessarily fall within the scope of a specific banking or consumer finance law.

Community Reinvestment Act: The CRA requires depository institutions to assist in meeting the credit needs of their market areas, including low- and moderate-income areas, consistent with safe and sound banking practice. Under this Act, each institution is required to adopt a statement for each of its market areas describing the depositary institution’s efforts to assist in its community’s credit needs. Depositary institutions are periodically examined for compliance and assigned one of four ratings: outstanding, satisfactory, needs improvement, or substantial noncompliance. The rating assigned to a financial institution is considered in connection with various applications submitted by a financial institution or its holding company to its banking regulators, including applications to acquire another financial institution or to open a new branch office. In addition, all subsidiary banks of a financial holding company must maintain a satisfactory or outstanding rating in order for the financial holding company to avoid limitations on its activities. Civista received a rating of “satisfactory” in its most recent CRA examination.

Economic Growth, Regulatory Relief and Consumer Protection Act: On May 25, 2018, the Economic Growth, Regulatory Relief and Consumer Protection Act (the “Regulatory Relief Act”) was enacted, which repealed or modified certain provisions of the Dodd-Frank Act and eased restrictions on all but the largest banks (those with consolidated assets in excess of $250 billion). Bank holding companies with consolidated assets of less than $100 billion, including CBI, are no longer subject to enhanced prudential standards. The Regulatory Relief Act also relieves bank holding companies and banks with consolidated assets of less than $100 billion, including CBI and Civista, from certain record-keeping, reporting and disclosure requirements. Certain other regulatory requirements applied only to banks with consolidated assets in excess of $50 billion and so did not apply to CBI or Civista even before the enactment of the Regulatory Relief Act.

Patriot Act and Anti-Money Laundering: The Uniting and Strengthening of America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (the “Patriot Act”) gives the United States government powers to address terrorist threats through enhanced domestic security measures, expanded surveillance powers, increased information sharing and broadened anti-money laundering requirements. Title III of the Patriot Act encourages information sharing among bank regulatory agencies and law enforcement bodies. Further, certain provisions of Title III impose affirmative obligations on a broad range of financial

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institutions. Among other requirements, Title III and related regulations require regulated financial institutions to establish a program specifying procedures for obtaining identifying information from customers seeking to open new accounts and establish enhanced due diligence policies, procedures and controls designed to detect and report suspicious activity. Civista has established policies and procedures that Civista believes comply with the requirements of the Patriot Act.

The Anti-Money Laundering Act of 2020 (the “AMLA”), which amends the Bank Secrecy Act of 1970 (the “BSA”), was enacted in January 2021. The AMLA is intended to be a comprehensive reform and modernization to U.S. bank secrecy and anti-money laundering laws. Among other things, it codifies a risk-based approach to anti-money laundering compliance for financial institutions; requires the development of standards for evaluating technology and internal processes for BSA compliance; expands enforcement-related and investigation-related authority, including increasing available sanctions for certain BSA violations and instituting BSA whistleblower initiatives and protections.

Office of Foreign Assets Control Regulation. The U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”) administers and enforces economic and trade sanctions against targeted foreign countries and regimes, under authority of various laws, including designated foreign countries, nationals and others. OFAC publishes lists of specially designated targets and countries. Civista is responsible for, among other things, blocking accounts of, and transactions with, such targets and countries, prohibiting unlicensed trade and financial transactions with them and reporting blocked transactions after their occurrence. Failure to comply with these sanctions could have serious financial, legal and reputational consequences, including causing applicable bank regulatory authorities not to approve merger or acquisition transactions when regulatory approval is required or to prohibit such transactions even if approval is not required. Regulatory authorities have imposed cease and desist orders and civil money penalties against institutions found to be violating these obligations.

Securities and Exchange Commission (“SEC”) and The Nasdaq Stock Market LLC (“Nasdaq”): CBI is also under the jurisdiction of the SEC and certain state securities commissions for matters relating to the offering and sale of its securities. CBI is subject to the registration, disclosure, reporting and regulatory requirements of the Securities Act of 1933, as amended (the “Securities Act”), the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the regulations promulgated under each of the Securities Act and the Exchange Act, as administered by the SEC. CBI’s common shares are listed with Nasdaq under the symbol “CIVB” and CBI is subject to the rules for Nasdaq listed companies.

Corporate Governance: As mandated by the Sarbanes-Oxley Act of 2002, the SEC has adopted rules and regulations governing, among other matters, corporate governance, auditing and accounting, executive compensation and enhanced and timely disclosure of corporate information. Nasdaq has also adopted corporate governance rules. The Board of Directors of the Company has taken a series of actions to strengthen and improve the Company’s governance practices in light of the rules of the SEC and Nasdaq. The Board of Directors has adopted charters for the Audit Committee, the Compensation Committee and the Nominating Committee, as well as a Code of Conduct (Ethics) applicable to all directors, officers and employees of the Company. In addition, in accordance with Section 302(a) of the Sarbanes-Oxley Act, written certifications by CBI’s Chief Executive Officer and Chief Financial Officer are required. These certifications attest that CBI’s quarterly and annual reports filed with the SEC do not contain any untrue statement of a material fact. See Item 9A “Controls and Procedures” in Part II of this Form 10-K for CBI’s evaluation of its disclosure controls and procedures.

Regulation of Bank Subsidiary: As an Ohio chartered bank, Civista is subject to supervision and regulation by the State of Ohio Department of Commerce, Division of Financial Institutions (the “ODFI”). In addition, Civista is a member of the Federal Reserve System and, therefore, is subject to supervision and regulation by the Federal Reserve Board. Civista is subject to periodic examinations by both ODFI and the Federal Reserve Board. These examinations are designed primarily for the protection of the depositors of the bank and not shareholders.

Banking subsidiaries of financial and bank holding companies are also subject to federal regulation regarding such matters as reserves, limitations on the nature and amount of loans and investments, issuance or retirement of its own securities, limitations on the payment of dividends and other aspects of banking operations.

Regulatory Capital Requirements: The Federal Reserve Board has adopted risk-based guidelines for financial holding companies and other bank holding companies as well as state member banks, and the FDIC has adopted risk-based capital guidelines for state non-member banks. The guidelines provide a systematic analytical framework which makes regulatory capital requirements sensitive to differences in risk profiles among banking organizations, takes off-balance sheet exposures expressly into account in evaluating capital adequacy, and minimizes disincentives to holding liquid, low-risk assets. Capital levels as measured by these standards are also used to categorize financial institutions for purposes of certain prompt corrective action regulatory provisions.

In July 2013, the United States banking regulators issued new capital rules applicable to smaller banking organizations which also implement certain of the provisions of the Dodd-Frank Act (the “Basel III Capital Rules”). Community banking organizations,

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including CBI and Civista, began transitioning to the new rules on January 1, 2015. The new minimum capital requirements became effective on January 1, 2015, whereas a new capital conservation buffer and deductions from common equity capital phased in from January 1, 2016 through January 1, 2019, and most deductions from common equity tier 1 capital phased in from January 1, 2015 through January 1, 2019.

The Basel III Capital Rules include (a) a minimum common equity tier 1 capital ratio of 4.5%, (b) a minimum Tier 1 capital ratio of 6.0%, (c) a minimum total capital ratio of 8.0%, and (d) a minimum leverage ratio of 4.0%.

Common equity for the common equity tier 1 capital ratio generally includes common stock (plus related surplus), retained earnings, accumulated other comprehensive income (unless an institution elects to exclude such income from regulatory capital), and limited amounts of minority interests in the form of common stock, subject to applicable regulatory adjustments and deductions.

Tier 1 capital generally includes common equity as defined for the common equity tier 1 capital ratio, plus certain non-cumulative preferred stock and related surplus, cumulative preferred stock and related surplus, trust preferred securities that have been grandfathered (but which are not permitted going forward), and limited amounts of minority interests in the form of additional Tier 1 capital instruments, less certain deductions.

Tier 2 capital, which can be included in the total capital ratio, generally consists of other preferred stock and subordinated debt meeting certain conditions plus limited amounts of the allowance for loan and lease losses, subject to specified eligibility criteria, less applicable deductions.

The deductions from common equity tier 1 capital include goodwill and other intangibles, certain deferred tax assets, mortgage-servicing assets above certain levels, gains on sale in connection with a securitization, investments in a banking organization’s own capital instruments and investments in the capital of unconsolidated financial institutions (above certain levels).

Under the guidelines, capital is compared to the relative risk related to the balance sheet. To derive the risk included in the balance sheet, one of several risk weights is applied to different balance sheet and off-balance sheet assets, primarily based on the relative credit risk of the counterparty. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

The Basel III Capital Rules also place restrictions on the payment of capital distributions, including dividends, and certain discretionary bonus payments to executive officers if the banking organization does not hold a capital conservation buffer of greater than 2.5 percent composed of common equity tier 1 capital above its minimum risk-based capital requirements, or if its eligible retained income is negative in that quarter and its capital conservation buffer ratio was less than 2.5 percent at the beginning of the quarter.

In September 2019, the Federal Reserve Board, along with other federal bank regulatory agencies, issued a final rule, effective January 1, 2020, that gave community banks, including the Company, the option to calculate a simple leverage ratio to measure capital adequacy if the community banks met certain requirements. Under the rule, a community bank is eligible to elect the Community Bank Leverage Ratio (“CBLR”) framework if it had less than $10 billion in total consolidated assets, limited amounts of certain assets and off-balance sheet exposures, and a leverage ratio greater than 9.0%. Qualifying institutions that elected to use the CBLR framework (each, a “CBLR Bank”) and that maintain a leverage ratio of greater than 9.0% will be considered to have satisfied the risk-based and leverage capital requirements in the regulatory agencies’ generally applicable capital rules and to have met the well-capitalized ratio requirements. No CBLR Bank was required to calculate or report risk-based capital, and each CBLR Bank could opt out of the framework at any time, without restriction, by reverting to the generally applicable risk-based capital rule. Pursuant to the CARES Act, on August 26, 2020, the federal banking agencies adopted a final rule that temporarily lowered the CBLR threshold and provided a gradual transition back to the prior level. Specifically, the CBLR threshold was reduced to 8.0% for the remainder of 2020, increased to 8.5% for 2021, and returned to 9.0% on January 1, 2022. This final rule became effective on October 1, 2020. The Company did not utilize the CBLR in assessing capital adequacy and, instead, continued to follow existing capital rules.

In December 2018, the federal banking agencies issued a final rule to address regulatory capital treatment of credit loss allowances under the current expected credit loss (“CECL”) model (accounting standard). The rule revises the federal banking agencies’ regulatory capital rules to identify which credit loss allowances under the CECL model are eligible for inclusion in regulatory capital and to provide banking organizations the option to phase in over three years the day-one adverse effects on regulatory capital that may result from the adoption of the CECL model. The Company currently anticipates recording a one-time cumulative effect adjustment upon adoption, and does not anticipate utilizing the three year phase in. The Company expects to maintain risk-based capital ratios in excess of “well-capitalized” after the impact of the one-time cumulative effect adjustment.

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At December 31, 2021, both CBI and Civista were in compliance with all of the regulatory capital requirements to which they are subject. For CBI’s and Civista’s capital ratios, see Note 18 to the Company’s 2021 Consolidated Financial Statements.

The Federal Reserve Board has adopted regulations governing prompt corrective action to resolve the problems of capital deficient and otherwise troubled state-chartered member banks. At each successively lower defined capital category, a bank is subject to more restrictive and numerous mandatory or discretionary regulatory actions or limits, and the Federal Reserve Board has less flexibility in determining how to resolve the problems of the institution. In addition, the Federal Reserve Board generally can downgrade a bank’s capital category, notwithstanding its capital level, if, after notice and opportunity for hearings, the bank is deemed to be engaged in an unsafe or unsound practice, because it has not corrected deficiencies that resulted in it receiving a less than satisfactory examination rating on matters other than capital or it is deemed to be in an unsafe or unsound condition. Civista’s capital at December 31, 2021, met the standards for the highest capital category, a “well-capitalized” bank.

Federal Reserve Board regulations also limit the payment of dividends by Civista to CBI. Civista may not pay a dividend if it would cause Civista not to meet its capital requirements. In addition, the dividends that Civista may pay to CBI without prior approval of the Federal Reserve Board is limited to net income for the year plus its retained net income for the preceding two years.

Volcker Rule

In December 2013, five federal agencies adopted a final regulation implementing the Volcker Rule provision of the Dodd-Frank Act (the “Volcker Rule”). The Volcker Rule places limits on the trading activity of insured depository institutions and entities affiliated with a depository institution, subject to certain exceptions. The trading activity includes a purchase or sale as principal of a security, derivative, commodity future or option on any such instruments in order to benefit from short-term price movements or to realize short-term profits. The Volcker Rule exempts specified U.S. Government, agency and/or municipal obligations, and it excepts trading conducted in certain capacities, including as a broker or other agent, through a deferred compensation or pension plan, as a fiduciary on behalf of customers, to satisfy a debt previously contracted, repurchase and securities lending agreements and risk-mitigating hedging activities.

The Volcker Rule also prohibits a banking entity from having an ownership interest in, or substantial relationships with, a hedge fund or private equity fund, also known as “covered funds,” with a number of exceptions. To the extent that Civista engages in any of the trading activities or has any ownership interest in or relationship with any of the types of funds regulated by the Volcker Rule, Civista believes that its activities and relationships fall within the scope of one or more of the exceptions provided in the Volcker Rule.

In July 2019, the five federal agencies that adopted the Volcker Rule adopted a final rule to exempt certain community banks, including Civista, from the Volcker Rule, consistent with the Regulatory Relief Act. Under the final rule, community banks with $10 billion or less in total consolidated assets and total trading assets and liabilities of 5.0% or less of total consolidated assets are excluded from the restrictions of the Volcker Rule. On June 25, 2020, the federal bank regulatory agencies also finalized a rule modifying the Volcker Rule’s prohibition on banking entities investing in or sponsoring covered funds. Such rule permits certain banking entities to offer financial services and engage in other activities that do not raise concerns that the Volcker Rule was originally intended to address.

Non-Banking Subsidiaries. The Company’s non-banking subsidiaries are also subject to regulation by the Federal Reserve Board and other applicable federal and state agencies. FCIA, as a licensed insurance agency, is subject to regulation by the Ohio Department of Insurance and the state insurance regulatory agencies of those states where it conducts business. CRMI, as a Delaware-chartered captive insurance company, is subject to the laws and regulations of the State of Delaware and undergoes periodic examinations by the Delaware Division of Insurance.

Executive and Incentive Compensation

The Dodd-Frank Act requires that the federal banking agencies, including the Federal Reserve Board and the FDIC, issue a rule related to incentive-based compensation. No final rule implementing this provision of the Dodd-Frank Act has, as of the date of the filing of this Annual Report on Form 10-K, been adopted, but a proposed rule was published in 2016 that expanded upon a prior proposed rule published in 2011. The proposed rule is intended to: (i) prohibit incentive-based payment arrangements that the banking agencies determine could encourage certain financial institutions to take inappropriate risks by providing excessive compensation or that could lead to material financial loss; (ii) require the board of directors of those financial institutions to take certain oversight actions related to incentive-based compensation; and (iii) require those financial institutions to disclose information concerning incentive-based compensation arrangements to the appropriate federal regulator. Although a final rule has not been issued, the Company has undertaken efforts to ensure that the Company’s incentive compensation plans do not encourage inappropriate risks, consistent with the principles identified above.

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In June 2010, the Federal Reserve Board, the OCC and the FDIC issued comprehensive final guidance on incentive compensation policies intended to ensure that the incentive compensation policies of banking organizations do not undermine the safety and soundness of such organizations by encouraging excessive risk-taking. The guidance, which covers all employees that have the ability to materially affect the risk profile of an organization, either individually or as part of a group, is based upon the key principles that a banking organization’s incentive compensation arrangements should (i) provide incentives that do not encourage risk-taking beyond the organization’s ability to effectively identify and manage risks, (ii) be compatible with effective internal controls and risk management and (iii) be supported by strong corporate governance, including active and effective oversight by the organization’s board of directors. These three principles are incorporated into the proposed joint compensation regulations under the Dodd-Frank Act, described above.

The Federal Reserve Board and the OCC review, as part of their respective regular, risk-focused examination process, the incentive compensation arrangements of banking organizations, such as CBI and Civista, that are not “large, complex banking organizations.” These reviews are tailored to each organization based on the scope and complexity of the organization’s activities and the prevalence of incentive compensation arrangements. Deficiencies will be incorporated into the organization’s supervisory ratings, which can affect the organization’s ability to make acquisitions and take other actions. Enforcement actions may be taken against a banking organization if its incentive compensation arrangements, or related risk-management control or governance processes, pose a risk to the organization’s safety and soundness and the organization is not taking prompt and effective measures to correct the deficiencies.

Public company compensation committee members must meet heightened independence requirements and consider the independence of compensation consultants, legal counsel and other advisors to the compensation committee. A compensation committee must have the authority to hire advisors and to have the public company fund reasonable compensation of such advisors.

Public companies will be required, once stock exchanges impose additional listing requirements under the Dodd-Frank Act, to implement “clawback” procedures for incentive compensation payments and to disclose the details of the procedures which allow recovery of incentive compensation that was paid on the basis of erroneous financial information necessitating a restatement due to material noncompliance with financial reporting requirements. This clawback policy is intended to apply to compensation paid within a three-year look-back window of the restatement and would cover all executives who received incentive awards. The Company has implemented a clawback policy and it is posted under the “Corporate Overview” tab on the “Governance Documents” page of CBI’s Internet website.

SEC regulations require public companies such as CBI to provide various disclosures about executive compensation in annual reports and proxy statements and to present to their shareholders a non-binding vote on the approval of executive compensation.

Financial Privacy Provisions: Federal and state regulations limit the ability of banks and other financial institutions to disclose non-public information about consumers to non-affiliated third parties. These limitations require disclosure of privacy policies to consumers and, in some circumstances, allow consumers to prevent disclosure of certain personal information to a non-affiliated third party. These regulations affect how consumer information is transmitted through diversified financial companies and conveyed to outside vendors.

Civista is also subject to regulatory guidelines establishing standards for safeguarding customer information. These guidelines describe the federal bank regulatory agencies’ expectations for the creation, implementation and maintenance of an information security program, which would include administrative, technical and physical safeguards appropriate to the size and complexity of the institution and the nature and scope of its activities. The standards set forth in the guidelines are intended to ensure the security and confidentiality of customer records and information, protect against any anticipated threats or hazards to the security or integrity of such records and protect against unauthorized access to or use of such records or information that could result in substantial harm or inconvenience to any customer.

Cybersecurity

In March 2015, federal regulators issued two related statements regarding cybersecurity. One statement indicates that financial institutions should design multiple layers of security controls to establish several lines of defense and to ensure that their risk management processes also address the risk posed by compromised customer credentials, including security measures to reliably authenticate customers accessing Internet-based services of the financial institution. The other statement indicates that a financial institution’s management is expected to maintain sufficient business continuity planning processes to ensure the rapid recovery, resumption and maintenance of the financial institution’s operations after a cyber-attack involving destructive malware. A financial institution is also expected to develop appropriate processes to enable recovery of data and business operations and address

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rebuilding network capabilities and restoring data if the financial institution or its critical service providers fall victim to this type of cyber-attack. If Civista fails to observe the regulatory guidance, it could be subject to various regulatory sanctions, including financial penalties.

In February 2018, the SEC published interpretive guidance to assist public companies in preparing disclosures about cybersecurity risks and incidents. These SEC guidelines, and any other regulatory guidance, are in addition to notification and disclosure requirements under state and federal banking law and regulations.

In November 2021, the OCC, the Federal Reserve Board and the FDIC issued a final rule requiring banking organizations that experience a computer-security incident to notify certain entities. A computer-security incident occurs when actual or potential harm to the confidentiality, integrity, or availability of an information system or the information occurs, or there is a violation or imminent threat of a violation to banking security policies and procedures. The affected bank must notify its respective federal regulator of the computer-security incident as soon as possible and no later than 36 hours after the bank determines a computer-security incident has occurred. These notifications are intended to promote early awareness of threats to banking organizations and will help banks react to those threats before they manifest into bigger incidents. This rule also requires bank service providers to notify its customers of a computer-security incident.

State regulators have also been increasingly active in implementing privacy and cybersecurity standards and regulations. Recently, several states have adopted regulations requiring certain financial institutions to implement cybersecurity programs and providing detailed requirements with respect to these programs, including data encryption requirements. Many states have also recently implemented or modified their data breach notification and data privacy requirements. The Company expects this trend of state-level activity in those areas to continue, and is continually monitoring developments in the states in which our customers are located.

In the ordinary course of business, the Company relies on electronic communications and information systems to conduct its operations and to store sensitive data. The Company employs an in-depth, layered, defensive approach that leverages people, processes and technology to manage and maintain cybersecurity controls. The Company employs a variety of preventative and detective tools to monitor, block, and provide alerts regarding suspicious activity, as well as to report on any suspected advanced persistent threats. Notwithstanding the strength of the Company’s defensive measures, the threat from cyber-attacks is severe, attacks are sophisticated and increasing in volume, and attackers respond rapidly to changes in defensive measures. While to date, the Company has not detected a significant compromise, significant data loss or any material financial losses related to cybersecurity attacks, Company’s systems and those of its customers and third-party service providers are under constant threat and it is possible that the Company could experience a significant event in the future. Risks and exposures related to cybersecurity attacks are expected to remain high for the foreseeable future due to the rapidly evolving nature and sophistication of these threats, as well as due to the expanding use of Internet banking, mobile banking and other technology-based products and services by us and our customers.

Effect of Environmental Regulation

Compliance with federal, state and local provisions regulating the discharge of materials into the environment, or otherwise relating to the protection of the environment, has not had a material effect upon the capital expenditures, earnings or competitive position of the Company. In the opinion of management, the Company does not have exposure to material costs associated with compliance with environmental laws and regulations or material expenditures related to environmental hazardous waste mitigation or cleanup.

The Company believes its primary exposure to environmental risk is through the lending activities of Civista. In cases where management believes environmental risk potentially exists, Civista mitigates its environmental risk exposure by requiring environmental site assessments at the time of loan origination to confirm collateral quality as to commercial real estate parcels posing higher than normal potential for environmental impact, as determined by reference to present and past uses of the subject property and adjacent sites. In addition, environmental assessments are typically required prior to any foreclosure activity involving non-residential real estate collateral.

Effects of Government Monetary Policy

The earnings of the Company are affected by general and local economic conditions and by the policies of various governmental regulatory authorities. In particular, the Federal Reserve Board regulates money and credit conditions and interest rates to influence general economic conditions, primarily through open market acquisitions or dispositions of United States Government securities,

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varying the discount rate on member bank borrowings and setting reserve requirements against member and nonmember bank deposits. Federal Reserve Board monetary policies have had a significant effect on the interest income and interest expense of commercial banks, including Civista, and are expected to continue to do so in the future.

Available Information

CBI maintains an Internet website at www.civb.com (this uniform resource locator, or URL, is an inactive textual reference only and is not intended to incorporate CBI’s website into this Annual Report on Form 10-K). CBI makes available free of charge on or through its Internet website its annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the Exchange Act), as well as CBI’s definitive proxy statements filed pursuant to Section 14 of the Exchange Act, as soon as reasonably practicable after CBI electronically files such material with, or furnishes it to, the SEC.

Statistical Information

The following section contains certain financial disclosures related to the Company as required under Subpart 1400 of the SEC’s Regulation S-K, or a specific reference as to the location of the required disclosures in the Registrant’s 2021 Annual Report to Shareholders, portions of which are incorporated in this Form 10-K by reference.

Distribution of Assets, Liabilities and Shareholders’ Equity; Interest Rates and Interest Differential

Average balance sheet information and the related analysis of net interest income for the years ended December 31, 2021, 2020 and 2019 is included on pages 14 through 16—“Distribution of Assets, Liabilities and Shareholders’ Equity; Interest Rates and Interest Differential” and “Changes in Interest Income and Interest Expense Resulting from Changes in Volume and Changes in Rate”, within Management’s Discussion and Analysis of Financial Condition and Results of Operations of the Company’s 2021 Annual Report to Shareholders and is incorporated into this Item I by reference.

Investments in Debt Securities

The following table sets forth the maturities of securities at December 31, 2021 and the weighted average yields of such debt securities. Maturities are reported based on stated maturities and do not reflect principal prepayment assumptions.

	Within one year					After one but within five years					After five but within ten years					After ten years
	Amount		Yield			Amount		Yield			Amount		Yield			Amount		Yield
	(Dollars in thousands)
Available for Sale (2)
U.S. Treasury securities and obligations of U.S. government agencies	$	3,252		1.32	%	$	25,714		0.63	%	$	18,691		1.29	%	$	233		1.56	%
Obligations of states and political subdivisions (1)		537		3.56			8,904		4.03			42,211		2.72			247,184		2.90
Mortgage-backed securities in government sponsored entities		1,573		3.11			16,560		3.23			11,872		0.82			183,143		1.90
Total	$	5,362		2.07	%	$	51,178		2.07	%	$	72,774		2.04	%	$	430,560		2.51	%

(1) Weighted average yields on nontaxable obligations have been computed based on actual yields stated on the security.

(2) The weighted average yield has been computed using the historical amortized cost for available-for-sale securities.

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Loan Portfolio

Maturities and Sensitivities of Loans to Changes in Interest Rates

The following table shows the amount of commercial and agriculture, commercial real estate, residential real estate, real estate construction, farm real estate and consumer and other loans outstanding as of December 31, 2021, which, based on the contract terms for repayments of principal, are due in the periods indicated. In addition, the amounts due after one year are classified according to their sensitivity to changes in interest rates.

	Maturing
	Within one year		After one but within five years		After five but within fifteen years		After fifteen years		Total
	(Dollars in thousands)
Commercial & Agriculture	$	70,434	$	115,810	$	59,678	$	580	$	246,502
Commercial Real Estate:
Owner Occupied		8,311		48,099		216,523		22,519		295,452
Non-Owner Occupied		36,837		241,402		535,859		15,212		829,310
Residential Real Estate		6,393		18,744		201,719		203,204		430,060
Real Estate Construction		24,703		78,299		39,660		14,465		157,127
Farm Real Estate		2,380		3,578		18,667		3,794		28,419
Consumer and Other		2,512		6,139		2,017		341		11,009
Total	$	151,570	$	512,071	$	1,074,123	$	260,115	$	1,997,879

	Due After One Year
	Fixed Rate		Variable Rate
	(Dollars in thousands)
Commercial & Agriculture	$	78,080	$	97,988
Commercial Real Estate:
Owner Occupied		54,777		232,364
Non-Owner Occupied		197,951		594,522
Residential Real Estate		121,192		302,475
Real Estate Construction		24,962		107,462
Farm Real Estate		7,283		18,756
Consumer and Other		7,465		1,032
Total	$	491,710	$	1,354,599

The preceding maturity information is based on contract terms at December 31, 2021 and does not include any possible “rollover” at maturity date. In the normal course of business, Civista considers and acts on the borrowers’ requests for renewal of loans at maturity. Evaluation of such requests includes a review of the borrower’s credit history, the collateral securing the loan and the purpose for such request.

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Allowance for Credit Losses

Analysis of the Allowance for Loan Losses

The following table shows the daily average loan balances and changes in the allowance for credit losses for the years indicated.

	2021			2020			2019
	(Dollars in thousands)
Total loans outstanding	$	1,997,879		$	2,057,502		$	1,708,970
Allowance for credit losses at year end		26,641			25,028			14,767
Loans accounted for on a nonaccrual basis		3,673			5,125			5,599
Allowance for credit losses to total loans outstanding		1.33	%		1.22	%		0.86	%
Nonaccrual loans to total loans outstanding		0.18	%		0.25	%		0.33	%
Allowance for credit losses to nonaccrual loans		725.32	%		488.35	%		263.74	%
Average loans outstanding:
Commercial & Agriculture		338,916			359,820			185,093
Commercial Real Estate—Owner Occupied		278,777			256,962			193,335
Commercial Real Estate—Non-Owner Occupied		755,578			643,622			576,383
Real Estate Mortgage		433,351			462,834			464,509
Real Estate Construction		176,775			175,573			140,184
Farm Real Estate		28,968			33,935			35,819
Consumer and Other		14,542			20,726			17,652
Total average loans outstanding		2,026,907			1,953,472			1,612,975
Net charge-offs (recoveries):
Commercial & Agriculture		(150	)		13			28
Commercial Real Estate—Owner Occupied		(7	)		(111	)		(128	)
Commercial Real Estate—Non-Owner Occupied		(395	)		(48	)		(102	)
Real Estate Mortgage		(182	)		18			35
Real Estate Construction		(1	)		(4	)		21
Farm Real Estate		(12	)		(13	)		(5	)
Consumer and Other		(36	)		(4	)		98
Total net charge-offs (recoveries)		(783	)		(149	)		(53	)
Ratio of net charge-offs (recoveries) during the year to average loans outstanding:
Commercial & Agriculture		(0.04	)%		0.00	%		0.02	%
Commercial Real Estate—Owner Occupied		(0.00	)%		(0.04	)%		(0.07	)%
Commercial Real Estate—Non-Owner Occupied		(0.05	)%		(0.01	)%		(0.02	)%
Real Estate Mortgage		(0.04	)%		0.00	%		0.01	%
Real Estate Construction		(0.00	)%		(0.00	)%		0.01	%
Farm Real Estate		(0.04	)%		(0.04	)%		(0.01	)%
Consumer and Other		(0.25	)%		(0.02	)%		0.56	%
Total net recoveries (charge-offs)		(0.04	)%		(0.01	)%		(0.00	)%

The amount of net charge-offs fluctuates from year to year due to factors relating to the condition of the general economy, decline in market values of collateral and deterioration of specific businesses.

The determination of the balance of the allowance for loan losses is based on a detailed analysis of the loan portfolio and reflects an amount that, in management’s judgment, is adequate to provide for probable incurred loan losses. Such analysis is based on a review of specific loans, the character of the loan portfolio, current economic conditions, risk management practices and such other factors as management believes require current recognition in estimating probable incurred loan losses.

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Allocation of Allowance for Credit Losses

The following tables allocate the allowance for loan losses at December 31 to each loan category. The allowance has been allocated according to the amount deemed to be reasonably necessary to provide for the probable losses estimated to be incurred within the following categories of loans at the dates indicated.

	2021					2020
	Allowance		Percentage of loans to total loans			Allowance		Percentage of loans to total loans
	(Dollars in thousands)
Commercial and Agriculture	$	2,600		12.3	%	$	2,810		19.9	%
Commercial Real Estate—Owner Occupied		4,464		14.9			4,057		13.6
Commercial Real Estate—Non-Owner Occupied		13,860		41.5			12,451		34.3
Real Estate Mortgage		2,597		21.5			2,484		21.5
Real Estate Construction		1,810		7.9			2,439		8.5
Farm Real Estate		287		1.4			338		1.6
Consumer and Other		176		0.5			209		0.6
Unallocated		847		—			240		—
	$	26,641		100.0	%	$	25,028		100.0	%

	2019
	Allowance		Percentage of loans to total loans
	(Dollars in thousands)
Commercial and Agriculture	$	2,219		11.9	%
Commercial Real Estate—Owner Occupied		2,541		14.4
Commercial Real Estate—Non-Owner Occupied		6,584		34.6
Real Estate Mortgage		1,582		27.1
Real Estate Construction		1,250		9.1
Farm Real Estate		344		2.0
Consumer and Other		247		0.9
Unallocated		—		—
	$	14,767		100.0	%

Civista measures the adequacy of the allowance for loan losses by using both specific and general components. The specific component relates to the evaluation of each loan identified as impaired. The general component consists of a pooling of commercial credits risk graded as special mention and substandard, based on portfolio experience, and general reserves, which are based on a twelve quarter loss migration analysis, adjusted for current economic factors. Loss migration rates are calculated over a twelve quarter period for all portfolio segments. Factors in the determination of the economic reserve include items such as changes in the economic and business conditions of its market, changes in lending policies and procedures, changes in loan concentrations, as well as a few others. The allowance for loan losses to total loans increased from 1.22% in 2020 to 1.33% in 2021. The unallocated reserve of Civista increased to $847 in 2021 from $240 in 2020. Management considers both the increase in unallocated and the end-of-period number to be insignificant and within the loan policy guidelines.

Deposits

The average daily amount of deposits (all in domestic offices) and average rates paid on such deposits is summarized for the years indicated.

	2021					2020
	Average balance		Average rate paid			Average balance		Average rate paid
	(Dollars in thousands)
Noninterest-bearing demand deposits	$	907,591		N/A		$	739,648		N/A
Interest-bearing demand deposits		497,067		0.03	%		379,828		0.05	%
Savings, including Money Market deposit accounts		818,153		0.13	%		670,716		0.24	%
Certificates of deposit, including IRA’s		265,294		1.11	%		288,262		1.76	%
	$	2,488,105				$	2,078,454

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Uninsured deposits at December 31, 2021 and 2020 were $599,380 and $515,454, respectively. Uninsured deposits as December 31, 2021 and 2020 are based on estimates and include portions of FDIC-insured deposit accounts that exceed the insurance limit of $250,000 per separately insured depositor.

Maturities of certificates of deposits and individual retirement accounts of more than $250,000 outstanding at December 31, 2021 are summarized as follows.

	Certificates of Deposits		Individual Retirement Accounts		Total
	(Dollars in thousands)
3 months or less	$	12,532	$	301	$	12,833
Over 3 through 6 months		6,784		611		7,395
Over 6 through 12 months		12,785		648		13,433
Over 12 months		23,410		1,296		24,706
	$	55,511	$	2,856	$	58,367

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Item lA. Risk Factors

FOR WARD-LOOKING STATEMENTS

This Annual Report on Form 10-K may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), relating to such matters as financial condition, anticipated operating results, cash flows, business line results, credit quality expectations, prospects for new lines of business, economic trends (including interest rates) and similar matters. Forward-looking statements reflect our expectations, estimates or projections concerning future results or events. These statements are generally identified by the use of forward-looking words or phrases such as “believe,” “belief,” “expect,” “anticipate,” “may,” “could,” “intend,” “intent,” “estimate,” “plan,” “foresee,” “likely,” “will,” “should” or other similar words or phrases. Forward-looking statements are not guarantees of performance and are inherently subject to known and unknown risks, uncertainties and assumptions that are difficult to predict and could cause our actual results, performance or achievements to differ materially from those expressed in or implied by the forward-looking statements.

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements, and the purpose of this section is to secure the use of the safe harbor provisions.

Forward-looking statements involve risks and uncertainties. Actual results may differ materially from those predicted by the forward-looking statements because of various factors and possible events, including those factors and events identified in the risk factors set forth below. There is also the risk that the Company’s management or Board of Directors incorrectly analyzes these risks and uncertainties or that the strategies the Company develops to address them are unsuccessful. The forward-looking statements included in this report are only made as of the date of this report, and we disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances, except as required by law. All subsequent written and oral forward-looking statements attributable to the Company or any person acting on the Company’s behalf are qualified in their entirety by the following cautionary statements

ECONOMIC AND POLITICAL RISKS

THE ECONOMIC IMPACT OF THE ONGOING COVID-19 PANDEMIC, OR AN OUTBREAK OF ANOTHER HIGHLY INFECTIOUS OR CONTAGIOUS DISEASE, COULD ADVERSELY AFFECT OUR BUSINESS, FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

The ongoing COVID-19 pandemic has negatively impacted global, national and local economies, disrupted global and national supply chains, lowered equity market valuations, and created significant volatility and disruption in financial markets. In addition, the pandemic resulted in temporary closures of many businesses and the institution of social distancing and sheltering in place requirements in many states and communities and may result in the same or similar restrictions in the future. As a result, the demand for Civista’s products and services has been and may continue to be significantly impacted, which could adversely affect our revenue and results of operations. Furthermore, the COVID- 19 pandemic could result in the recognition of credit losses in our loan portfolios and increases in our allowance for credit losses, particularly if businesses remain required to operate at diminished capacities or are required to close again, the impact on the global, national and local economies worsen, or more customers draw on their lines of credit or seek additional loans to help finance their businesses. Our business operations may also be disrupted if significant portions of our workforce are unable to work effectively, including because of illness, quarantines, government actions, or other restrictions in connection with COVID-19. The extent to which COVID-19 impacts our business, results of operations, and financial condition, as well as our regulatory capital and liquidity ratios, will depend on future developments, which are highly uncertain and cannot be predicted, including the scope and duration of the pandemic and actions taken by governmental authorities and other third parties in response to the pandemic.

As of December 31, 2021, we continued to hold and service a limited number of PPP loans. These PPP loans are subject to the provisions of the CARES Act and to complex and evolving rules and guidance issued by the SBA and other government agencies. We expect that most if not all of our remaining PPP borrowers will seek full or partial forgiveness of their loan obligations. We have credit risk on the PPP loans if the SBA determines that there is a deficiency in the manner in which we originated, funded or serviced loans, including any issue with the eligibility of a borrower to receive a PPP loan. We could face additional risks in our administrative capabilities to service our PPP loans, and risk with respect to the determination of loan forgiveness. In the event of a loss resulting from a default on a PPP loan and a determination by the SBA that there was a deficiency in the manner in which we originated, funded or serviced the PPP loan, the SBA may deny its liability under the guaranty, reduce the amount of the guaranty or, if the SBA has already paid under the guaranty, seek recovery of any loss related to the deficiency.

The spread of COVID-19, including new variants thereof, has also caused us to modify our business practices, including employee travel, employee work locations, and cancellation of physical participation in meetings, events and conferences. Further,

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technology in employees’ homes may not be as robust as in our offices and could cause the networks, information systems, applications, and other tools available to such employees to be more limited or less reliable. The continuation of these work-from-home measures also introduces additional operational risk, including increased cybersecurity risk from phishing, malware, and other cybersecurity attacks, all of which could expose us to risks of data or financial loss and could seriously disrupt our operations and the operations of any impacted customers.

COVID-19, including the spread of new variants thereof, or a new pandemic could subject us to any of the following risks, any of which could, individually or in the aggregate, have a material adverse effect on our business, financial condition, liquidity, and results of operations:

• demand for our products and services may decline, making it difficult to grow assets and income;

• if the economy is unable to fully reopen or experiences additional or new closures or downturns as a result of the COVID-19 pandemic, loan delinquencies, problem assets, and foreclosures may increase, resulting in increased charges and reduced income;

• collateral for loans, especially real estate, may decline in value, which could cause loan losses to increase;

• our allowance for loan losses may have to be increased if borrowers experience financial difficulties beyond forbearance periods, which will adversely affect our net income;

• the net worth and liquidity of loan guarantors may decline, impairing their ability to honor commitments to us;

• a prolonged weakness in economic conditions resulting in a reduction of future projected earnings could result in our recording a valuation allowance against our current outstanding deferred tax assets;

• we rely on third party vendors for certain services, and the unavailability of a critical service due to COVID-19 could have an adverse effect on us; and

• continued adverse economic conditions could result in protracted volatility in the price of our common shares.

Moreover, our future success and profitability substantially depend on the management skills of our executive officers and directors, many of whom have held officer and director positions with us for many years. The unanticipated loss or unavailability of key employees due to COVID-19, including new variants thereof, or any similar pandemic could harm our ability to operate our business or execute our business strategy. We may not be successful in finding and integrating suitable successors in the event of key employee loss or unavailability.

Even after the COVID-19 pandemic subsides, the U.S. economy will likely require time to recover, the length of which is unknown and during which the United States may experience a recession or market correction. Our business could be materially and adversely affected by such recession or market correction.

We continue to closely monitor the impact of COVID-19 and related risks as they evolve. To the extent the effects of COVID-19 adversely impact our business, financial condition, liquidity or results of operations, it may also have the effect of heightening many of the other risks described in this section.

CHANGES IN ECONOMIC AND POLITICAL CONDITIONS COULD ADVERSELY AFFECT OUR EARNINGS THROUGH DECLINES IN DEPOSITS, LOAN DEMAND, THE ABILITY OF OUR CUSTOMERS TO REPAY LOANS AND THE VALUE OF THE COLLATERAL SECURING OUR LOANS.

Our success depends to a significant extent upon local and national economic and political conditions, as well as governmental fiscal and monetary policies. Conditions such as inflation, recession, unemployment, changes in interest rates, fiscal and monetary policy, an increasing federal government budget deficit, slowing gross domestic product, tariffs, a U.S. withdrawal from or significant renegotiation of trade agreements, trade wars, and other factors beyond our control may adversely affect Civista’s deposit levels and composition, the quality of investment securities available for purchase, demand for loans, the ability of Civista’s borrowers to repay their loans, and the value of the collateral securing loans made by Civista. Disruptions in U.S. and global financial markets, and changes in oil production in the Middle East also affect the economy and stock prices in the U.S., which can affect our earnings capital, as well as the ability of Civista’s customers to repay loans. Because we have a significant amount of real estate loans, decreases in real estate values could adversely affect the value of property used as collateral and our ability to sell the collateral upon foreclosure. Adverse changes in the economy, including those resulting from the ongoing COVID-19 pandemic, may also have a negative effect on the ability of our borrowers to make timely repayments of their loans, which would have an adverse impact on our earnings and cash flows.

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ADVERSE CHANGES IN THE REAL ESTATE MARKET COULD CAUSE INCREASES IN DELINQUENCIES AND NON-PERFORMING ASSETS, INCLUDING ADDITIONAL LOAN CHARGE-OFFS, AND COULD DEPRESS OUR INCOME, EARNINGS AND CAPITAL.

At December 31, 202 I, approximately 21.5% and 56.3%, respectively, of our loan portfolio was comprised of residential and commercial real estate loans. Adverse changes in economic conditions both nationally and in the communities we serve have and may continue to cause deterioration to the value of real estate Civista uses to secure its loans. Adverse changes in the economy, deterioration of our real estate portfolio, a decrease in real estate values, an increase in unemployment, decreased or nonexistent housing price appreciation or increases in interest rates could reduce our earnings and consequently our financial condition because borrowers may not be able to repay their loans. The value of the collateral securing our loans and the quality of our loan portfolio may decline and customers may not want or need our products and services.

Any of these scenarios could cause us to make fewer loans, increase delinquencies and non-performing assets, require us to charge off a higher percentage of our loans or result in additional increases to our provision for loan losses in future periods, which could adversely affect our business, financial condition and results of operations.

CHANGES IN INTEREST RATES COULD HAVE A MATERIAL ADVERSE EFFECT ON OUR NET INTEREST INCOME.

Our results of operations are affected principally by net interest income, which is the difference between interest earned on loans and investments and interest expense paid on deposits and other borrowings. The spread between the yield on our interest-earning assets and our overall cost of funds has been compressed in the recent low interest rate environment, and our net interest income may continue to be adversely impacted by an extended period of continued low rates. We cannot predict or control changes in interest rates. National, regional and local economic conditions and the policies of regulatory authorities, including monetary policies of the Board of Governors of the Federal Reserve System, affect the movement of interest rates and our interest income and interest expense. If the interest rates paid on deposits and other borrowed funds increase at a faster rate than the interest rates received on loans and other investments, our net interest income, and therefore earnings, could be adversely affected. Earnings could also be adversely affected if the interest rates received on loans and other investments fall more quickly than the interest rates paid on deposits and other borrowed funds.

In addition, certain assets and liabilities may react in different degrees to changes in market interest rates. For example, interest rates on some types of assets and liabilities may fluctuate prior to changes in broader market interest rates, while interest rates on other types may lag behind. Some of our assets, such as adjustable rate mortgages, have features that restrict changes in their interest rates, including rate caps.

Interest rates are highly sensitive to many factors that are beyond our control. Some of these factors include:

• inflation;

• recession;

• unemployment;

• money supply;

• international disorders; and

• instability in domestic and foreign financial markets.

Changes in interest rates may affect the level of voluntary prepayments on our loans and may also affect the level of financing or refinancing by customers. We believe that the impact on our cost of funds from a rise in interest rates will depend on a number of factors, including but not limited to, the competitive environment in the banking sector for deposit pricing, opportunities for clients to invest in other markets such as fixed income and equity markets, and the propensity of customers to invest in their businesses. The effect on our net interest income from an increase in interest rates will ultimately depend on the extent to which the aggregate impact of loan re-pricings exceeds the impact of increases in our cost of funds.

See the discussion under the caption “Quantitative and Qualitative Disclosures About Market Risk” on pages 19 through 21 of the 2021 Annual Report for additional information related to the Company’s interest rate risk.

A TRANSITION AWAY FROM LIBOR AS A REFERENCE RATE FOR FINANCIAL CONTRACTS COULD NEGATIVELY IMPACT OUR INCOME AND EXPENSES AND THE VALUE OF VARIOUS FINANCIAL CONTRACTS.

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LIBOR is used extensively in the United States and globally as a benchmark for various commercial and financial contracts, including adjustable rate mortgages, corporate debt, interest rate swaps and other derivatives. LIBOR is set based on interest rate information reported by certain banks, which may stop reporting such information after 2021. On July 27, 2017, the United Kingdom’s Financial Conduct Authority (“FCA”) announced that it intends to stop persuading or compelling banks to submit LIBOR rates after 2021. On November 30, 2020, to facilitate an orderly LIBOR transition, the OCC, the FDIC, and the Federal Reserve Board jointly announced that entering into new contracts using LIBOR as a reference rate after December 31, 2021, would create a safety and soundness risk. On March 5, 2021, the FCA announced that all LIBOR settings will either cease to be provided by any administrator or no longer be representative immediately after December 31, 202 I, in the case of 1-week and 2-month LIBOR, and immediately after June 30, 2023, in the case of the remaining LIBOR settings. In the U.S., efforts to identify a set of alternative U.S. dollar reference interest rates are ongoing, and the Alternative Reference Rate Committee (“ARRC”) has recommended the use of a Secured Overnight Funding Rate (“SOFR”). SOFR is different from LIBOR in that it is a backward looking secured rate rather than a forward looking unsecured rate.

These differences could lead to a greater disconnect between our costs to raise funds for SOFR as compared to LIBOR. For cash products and loans, ARRC has also recommended Term SOFR, which is a forward looking SOFR based on SOFR futures and may in part reduce differences between SOFR and LIBOR. There are operational issues which may create a delay in the transition to SOFR or other substitute indices, leading to uncertainty across the industry. These consequences cannot be entirely predicted and could have an adverse impact on the market value for or value of LIBOR-linked securities, loans, and other financial obligations or extensions of credit.

The Company has limited exposure to LIBOR, with total exposure as of December 31, 2021 of approximately $362.9 million. The Company’s primary exposure to LIBOR relates to its promissory notes with borrowers, swap contracts with clients, offsetting swap contracts with third parties related to the swap contracts with clients, the Company’s LIBOR-based borrowings (if any), and Civista’s swap contracts which can be tied to LIBOR. The Company’s contracts generally include a LIBOR term (for example, one month, three month, or one year) plus an incremental margin rate. The Company is working through this transition via a multi-disciplinary project team. We are still evaluating the impact the change to a benchmark like SOFR or Prime Rate will have on our financial condition, results of operations or cash flows.

RISKS RELATED TO OUR BUSINESS OPERATIONS

WE ARE EXPOSED TO OPERATIONAL RISK.

We are exposed to many types of operational risk, including reputational risk, legal and compliance risk, the risk of fraud or theft by employees or outsiders, unauthorized transactions by employees or operational errors, including clerical or record-keeping errors or those resulting from faulty or disabled computer or telecommunications systems. Many of these risks are heightened in light of COVID-19.

We rely heavily on communications and information systems to conduct our business. Any failure, interruption or breach in security of these systems could result in failures or disruptions in our customer relationship management, general ledger, deposit, loan and other systems.

We may be subject to disruptions of our operating systems arising from events that are wholly or partially beyond our control, which may include, for example, computer viruses, cyber-attacks, spikes in transaction volume and/or customer activity, electrical or telecommunications outages, or natural disasters. Although we have programs in place related to business continuity, disaster recovery and information security to maintain the confidentiality, integrity and availability of our systems, business applications and customer information, such disruptions may give rise to interruptions in service to customers, loss of data privacy and loss or liability to us. Any failure or interruption in our operations or information systems, or any security or data breach, could cause reputational damage, jeopardize the confidentiality of customer information, result in a loss of customer business, subject us to regulatory intervention or expose us to civil litigation and financial loss or liability, any of which could have a material adverse effect on us.

Given the volume of transactions we process, certain errors may be repeated or compounded before they are discovered and successfully rectified. Our necessary dependence upon automated systems to record and process our transaction volume may further increase the risk that technical system flaws or employee tampering or manipulation of those systems will result in losses that are difficult to detect. We may also be subject to disruptions of our operating systems arising from events that are wholly or partially beyond our control (for example, computer viruses or electrical or telecommunications outages), which may give rise to disruption of service to customers and to financial loss or liability. We are further exposed to the risk that our external vendors may be unable to fulfill their contractual obligations (or will be subject to the same risk of fraud or operational errors by their respective employees as we are) and to the risk that our (or our vendors’) consumer compliance, business continuity and data security systems prove to be inadequate.

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Negative public opinion can result from our actual or alleged conduct in any number of activities, including lending practices, corporate governance and acquisitions, social media and other marketing activities, the implementation of environmental, social and governance (ESP) practices, and from actions taken by governmental regulators and community organizations in response to any of the foregoing activities. Negative public opinion could adversely affect our ability to attract and keep customers, could expose us to potential litigation and regulatory action, and could have a material adverse effect on the price of our common shares or result in heightened volatility of our stock price.

UNAUTHORIZED DISCLOSURE OF SENSITIVE OR CONFIDENTIAL CLIENT INFORMATION OR BREACHES IN SECURITY OF OUR SYSTEMS, COULD SEVERELY HARM OUR BUSINESS.

As part of our financial institution business, we collect, process and store sensitive consumer data by utilizing computer systems and telecommunications networks operated by both us and third-party service providers. Our necessary dependence upon automated systems to record and process transactions poses the risk that technical system flaws, employee errors, tampering or manipulation of those systems, or attacks by third parties will result in losses and may be difficult to detect. We have security and backup and recovery systems in place, as well as a business continuity plan, to ensure the computer systems will not be inoperable, to the extent possible. The Company also routinely reviews documentation of such controls and backups related to third-party service providers. Our inability to use or access these information systems at critical points in time could unfavorably impact the timeliness and efficiency of our business operations. In recent years, some banks have experienced denial of service attacks in which individuals or organizations flood the bank’s website with extraordinarily high volumes of traffic, with the goal and effect of disrupting the ability of the bank to process transactions. Other businesses have been victims of ransomware attacks in which the business becomes unable to access its own information and is presented with a demand to pay a ransom in order to once again have access to its information.

We could be adversely affected if one of our employees or a third-party service provider causes a significant operational break-down or failure, either as a result of human error or where an individual purposefully sabotages or fraudulently manipulates our operations or systems. We are further exposed to the risk that the third-party service providers may be unable to fulfill their contractual obligations (or will be subject to the same risks as faced by us). These disruptions may interfere with service to our customers, cause additional regulatory scrutiny and result in a financial loss or liability. We are also at risk of the impact of natural disasters, terrorism and international hostilities on our systems or for the effects of outages or other failures involving power or communications systems operated by others.

Misconduct by employees could include fraudulent, improper or unauthorized activities on behalf of clients or improper use of confidential information. We may not be able to prevent employee errors or misconduct, and the precautions we take to detect this type of activity might not be effective in all cases. Employee errors or misconduct could subject us to civil claims for negligence or regulatory enforcement actions, including fines and restrictions on our business.

In addition, there have been instances where financial institutions have been victims of fraudulent activity in which criminals pose as customers to initiate wire and automated clearinghouse transactions out of customer accounts. Although we have policies and procedures in place to verify the authenticity of our customers, we cannot assure that such policies and procedures will prevent all fraudulent transfers. Such activity can result in financial liability and harm to our reputation.

We have implemented security controls to prevent unauthorized access to the computer systems, and we require our third-party service providers to maintain similar controls. However, we cannot be certain that these measures will be successful. A security breach of our computer systems and loss of confidential information, such as customer account numbers and related information, could result in a loss of customers’ confidence and, thus, loss of business. While Civista maintains specific “cyber” insurance coverage, which would apply in the event of various breach scenarios, the amount of coverage may not be adequate in any particular case. Furthermore, because cyber threat scenarios are inherently difficult to predict and can take many forms, some breaches may not be covered under our cyber insurance coverage.

Further, we may be impacted by data breaches at retailers and other third parties who participate in data interchanges with us and our customers that involve the theft of customer credit and debit card data, which may include the theft of our debit card personal identification numbers (PINs) and commercial card information used to make purchases at such retailers and other third parties. Such data breaches could result in us incurring significant expenses to reissue debit cards and cover losses, which could result in a material adverse effect on our results of operations. To date, we have not experienced any material losses relating to cyber-attacks or other information security breaches, but there can be no assurance that we will not suffer such attacks or attempted breaches, or incur resulting losses in the future. Our risk and exposure to these matters remains heightened because of, among other things, the evolving nature of these threats, and our plans to continue to implement internet and mobile banking capabilities to meet customer demand. As cyber and other data security threats continue to evolve, we may be required to expend significant additional resources to continue to modify and enhance its protective measures or to investigate and remediate any security vulnerabilities.

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Our assets at risk for cyber-attacks include financial assets and non-public information belonging to customers. We use several third-party vendors who have access to our assets via electronic media. Certain cyber security risks arise due to this access, including cyber espionage, blackmail, ransom, and theft.

All of the types of cyber incidents discussed above could result in damage to our reputation, loss of customer business, costs of incentives to customers or business partners in order to maintain their relationships, litigation, increased regulatory scrutiny and potential enforcement actions, repairs of system damage, increased investments in cybersecurity (such as obtaining additional technology, making organizational changes, deploying additional personnel, training personnel and engaging consultants), increased insurance premiums, and loss of investor confidence and a reduction in the price of our common shares, all of which could result in financial loss and material adverse effects on our results of operations and financial condition.

NONCOMPLIANCE WITH THE BANK SECRECY ACT (BSA) AND OTHER ANTI-MONEY LAUNDERING STATUTES AND REGULATIONS COULD CAUSE A MATERIAL FINANCIAL LOSS.

The BSA and the Patriot Act contain anti-money laundering and financial transparency provisions intended to detect and prevent the use of the U.S. financial system for money laundering and terrorist financing activities. The BSA, as amended by the Patriot Act and the AMLA, requires depository institutions and their holding companies to undertake activities including maintaining an anti-money laundering program, verifying the identity of clients, monitoring for and reporting suspicious transactions, reporting on cash transactions exceeding specified thresholds, and responding to requests for information by regulatory authorities and law enforcement agencies. Financial Crimes Enforcement Network (also known as FinCEN), a unit of the Treasury Department that administers the BSA, is authorized to impose significant civil money penalties for violations of those requirements and has recently engaged in coordinated enforcement efforts with the federal bank regulatory agencies, as well as the U.S. Department of Justice, Drug Enforcement Administration, and Internal Revenue Service. The AMLA is intended to be a comprehensive reform and modernization to U.S. bank secrecy and anti-money laundering laws, which includes a codified risk-based approach to anti-money laundering compliance for financial institutions; requires the development of standards for evaluating technology and internal processes for BSA compliance; expands enforcement-related and investigation-related authority, including increasing available sanctions for certain BSA violations and instituting BSA whistleblower incentives and protections.

There is also increased scrutiny of compliance with the rules enforced by the Office of Foreign Assets Control (also known as OFAC). If the Company’s policies, procedures, and systems are deemed deficient, or if the policies, procedures, and systems of the financial institutions that the Company has already acquired or may acquire in the future are deficient, the Company may be subject to liability, including fines and regulatory actions such as restrictions on the Company’s ability to pay dividends and the necessity to obtain regulatory approvals to proceed with certain planned business activities, including acquisition plans, which could negatively impact our business, financial condition, and results of operations. Failure to maintain and implement adequate programs to combat money laundering and terrorist financing could also have serious reputational consequences for the Company.

OUR BUSINESS COULD BE ADVERSELY AFFECTED THROUGH THIRD PARTIES WHO PERFORM SIGNIFICANT OPERATIONAL SERVICES ON OUR BEHALF.

The third parties performing operational services for the Company are subject to risks similar to those faced by the Company relating to cybersecurity, breakdowns or failures of their own systems, or misconduct of their employees. Further, the operations of our third-party vendors could fail or otherwise become delayed as a result of COVID-19. Like many other community banks, Civista also relies, in significant part, on a single vendor for the systems which allow Civista to provide banking services to Civista’s customers, for which the systems are maintained on Civista’s behalf by this single vendor.

One or more of the third parties utilized by us may experience a cybersecurity event or operational disruption and, if any such event does occur, it may not be adequately addressed, either operationally or financially, by such third party. Certain of these third parties may have limited indemnification obligations to us in the event of a cybersecurity event or operational disruption, or may not have the financial capacity to satisfy their indemnification obligations.

Financial or operational difficulties of a third party provider could also impair our operations if those difficulties interfere with such third party’s ability to serve the Company. If a critical third-party provider is unable to meet the needs of the Company in a timely manner, or if the services or products provided by such third party are terminated or otherwise delayed and if the Company is not able to develop alternative sources for these services and products quickly and cost-effectively, our business could be materially adversely effected.

Additionally, regulatory guidance adopted by federal banking regulators addressing how banks select, engage and manage their third-party relationships, affects the circumstances and conditions under which we work with third parties and the cost of managing such relationships.

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STRONG COMPETITION WITHIN OUR MARKET AREA MAY REDUCE OUR ABILITY TO ATTRACT AND RETAIN DEPOSITS AND ORIGINATE LOANS.

We face competition both in originating loans and in attracting deposits within our market area, which includes North Central, West Central, South Western Ohio, South Eastern Indiana and Northern Kentucky. We compete for clients by offering personal service and competitive rates on our loans and deposit products. The type of institutions we compete with include large regional financial institutions, community banks, thrifts and credit unions operating within our market areas. Nontraditional sources of competition for loan and deposit dollars come from captive auto finance companies, mortgage banking companies, internet banks, brokerage companies, insurance companies and direct mutual funds. As a result of their size and ability to achieve economies of scale, certain of our competitors offer a broader range of products and services than we offer. We expect competition to remain intense in the future as a result of legislative, regulatory and technological changes and the continuing trend of consolidation in the financial services industry. In addition, to stay competitive in our markets we may need to adjust the interest rates on our products to match the rates offered by our competitors, which could adversely affect our net interest margin. As a result, our profitability depends upon our continued ability to successfully compete in our market areas while achieving our investment objectives.

OUR ALLOWANCE FOR LOAN LOSSES MAY PROVE TO BE INSUFFICIENT TO ABSORB POTENTIAL LOSSES IN OUR LOAN PORTFOLIO.

We maintain an allowance for loan losses that we believe is a reasonable estimate of known and inherent losses within the loan portfolio. We make various assumptions and judgments about the collectability of our loan portfolio, including the creditworthiness of our borrowers and the value of the real estate and other assets serving as collateral for the repayment of loans. Through a periodic review and consideration of the loan portfolio, management determines the amount of the allowance for loan losses by considering general market conditions, the credit quality of the loan portfolio, the collateral supporting the loans and the performance of customers relative to their financial obligations with us. However, every loan we make carries a risk of non-payment. This risk is affected by, among other things, cash flow of the borrower and/or the project being financed, changes and uncertainties as to the future value of the collateral securing such loan, the credit history of the particular borrower, changes in economic and industry conditions, and the duration of the loan.

The amount of future losses is also susceptible to changes in economic, operating and other conditions, including changes in interest rates, which may be beyond our control, and these losses may exceed current estimates. We cannot fully predict the amount or timing of losses or whether the allowance for loan losses will be adequate in the future. If our assumptions prove to be incorrect, our allowance for loan losses may not be sufficient to cover losses inherent in our loan portfolio, resulting in additions to the allowance, which would adversely affect our earnings. Excessive loan losses and significant additions to our allowance for loan losses could have a material adverse impact on our financial condition and results of operations.

In addition, bank regulators periodically review our allowance for loan losses and may require us to increase our allowance for loan losses or recognize further loan charge-offs. Moreover, the Financial Accounting Standards Board (“FASB”) has changed its requirements for establishing the allowance for loan losses.

On June 16, 2016, the FASB issued Accounting Standard Update (“ASU”) 2016-13 “Financial Instruments - Credit Losses”, which replaces the incurred loss model with an expected loss model, and is referred to as the current expected credit loss (“CECL”) model. Under the incurred loss model, loans are recognized as impaired when there is no longer an assumption that future cash flows will be collected in full under the originally contracted terms. The FASB voted to defer the effective date for this ASU for smaller reporting companies, such as the Company, to annual reporting periods and interim reporting periods within those annual periods, beginning after December 15, 2022. Under the CECL model, financial institutions will be required to use historical information, current conditions and reasonable forecasts to estimate the expected loss over the life of the loan. The transition to the CECL model will bring with it significantly greater data requirements and changes to methodologies to accurately account for expected losses under the new parameters. If the methodologies and assumptions that we use in the CECL model are proven to be incorrect, or inadequate, the allowance for credit losses may not be sufficient, resulting in the need for additional allowance for credit losses to be established, which could have a material adverse impact on our financial condition and results of operations.

We may further experience increased delinquencies, credit losses, and corresponding charges to capital, which could require us to increase our provision for loan losses associated with impacts related to the coronavirus outbreak due to quarantines, market downturns, increased unemployment rates, changes in consumer behavior related to pandemic fears, and related emergency response legislation. We cannot predict the full impact of the coronavirus outbreak or any other future global pandemic on our business, but we may experience increased delinquencies and credit losses as a result of the outbreak. Further, if real estate markets or the economy in general deteriorate (due to the coronavirus outbreak or otherwise), Civista may experience increased delinquencies and credit losses. The allowance for loan losses may not be sufficient to cover actual loan-related losses.

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Additionally, banking regulators may require Civista to increase its allowance for loan losses in the future, which could have a negative effect on Civista’s financial condition and results of operations. Additions to the allowance for loan losses will result in a decrease in net earnings and capital and could hinder our ability to grow our assets.

Any increase in our allowance for loan losses or loan charge-offs as required by these regulatory authorities could have a material adverse effect on our financial condition and results of operations.

THE SMALL TO MEDIUM SIZED BUSINESSES THAT WE LEND TO MAY HAVE FEWER RESOURCES TO WEATHER ADVERSE BUSINESS CONDITIONS, WHICH MAY IMPAIR THEIR ABILITY TO REPAY LOANS, AND SUCH IMPAIRMENT COULD ADVERSELY AFFECT OUR RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

Our business development and marketing strategies primarily result in us serving the banking and financial services needs of small to medium-sized businesses. These businesses generally have fewer financial resources in terms of capital or borrowing capacity than larger entities, frequently have smaller market shares than their competition, may be more vulnerable to economic downturns, often need substantial additional capital to expand or compete and may experience substantial volatility in operating results, any of which may impair a borrower’s ability to repay a loan. In addition, the success of a small to medium-sized business often depends on the management skills, talents and efforts of one or two people or a small group of people, and the death, disability or resignation of one or more of these people could have a material adverse impact on the business and its ability to repay its loans. If general economic conditions negatively impact Ohio, Indiana or the specific markets in these states in which we operate and small to medium-sized businesses are adversely affected or our borrowers are otherwise affected by adverse business conditions, our business, financial condition and results of operations could be adversely affected.

Further, in response to the coronavirus pandemic, the FFCRA was passed on March 18, 2020. The FFCRA provides wide ranging emergency relief and appropriations for coronavirus testing, expansion of food assistance, Medicaid funding, and unemployment insurance benefits. In addition, the FFCRA requires that employers with 500 or fewer employees provide emergency paid sick leave and expanded emergency leave under the Family and Medical Leave Act. In addition to the regulatory compliance costs, the FFCRA could have a significant financial impact on our customers that are small to medium-sized businesses with 500 or fewer employees as the FFCRA will require these businesses to provide two weeks of paid sick leave and up to 12 weeks of paid (after 10 days) family and medical leave for employees who have worked at the company for at least 30 calendar days and who are unable to work (or even telework) in order to care for their children because of school closures or the unavailability of the child care provider due to the public health emergency. While the U.S. Department of Labor has broad authority to waive the applicability of these requirements for small businesses with fewer than 50 employees from the paid leave requirements if compliance with these requirements would affect the viability of the business, the applicability of this waiver, and the impact of these provisions on our impacted customers is unpredictable and unknown. The FFCRA has the potential to negatively impact our customers’ costs, demand for our customers’ products, and, thus, adversely affect our business, financial condition, and results of operations.

OUR BUSINESS AND FINANCIAL RESULTS ARE SUBJECT TO RISKS ASSOCIATED WITH THE CREDITWORTHINESS OF OUR CUSTOMERS AND COUNTERPARTIES.

Credit risk is inherent in the financial services business and results from, among other things, extending credit to customers, purchasing securities, and entering into financial derivative transactions and certain guarantee contracts. Credit risk is one of our most significant risks, particularly given the high percentage of our assets represented directly or indirectly by loans, and the importance of lending to our overall business. We manage credit risk by assessing and monitoring the creditworthiness of our customers and counterparties and by diversifying our loan portfolio. Many factors impact credit risk.

A borrower’s ability to repay a loan can be adversely affected by individual factors, such as business performance, job losses or health issues. A weak or deteriorating economy and changes in the United States or global markets also could adversely impact the ability of our borrowers to repay outstanding loans. Any decrease in our borrowers’ ability to repay loans would result in higher levels of nonperforming loans, net charge-offs, and provision for loan losses.

Despite maintaining a diversified loan portfolio, in the ordinary course of business, we may have concentrated credit exposure to a particular person or entity, industry, region or counterparty. Events adversely affecting specific customers, industries, regions or markets, a decrease in the credit quality of a customer base or an adverse change in the risk profile of a market, industry, or group of customers could adversely affect us.

Our credit risk may be exacerbated when collateral held by us to secure obligations to us cannot be realized upon or is liquidated at prices that are not sufficient to recover the full amount of the loan or derivative exposure due us.

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Due in part to improvement in local and general economic conditions, as well as actions we have taken to manage our loan portfolio, our provision for loan losses has declined since the end of the recent recession. However, if we experience higher levels of provision for loan losses in the future, our net income could be negatively affected.

WE RELY HEAVILY ON OUR MANAGEMENT TEAM, AND THE UNEXPECTED LOSS OF KEY MANAGEMENT MAY ADVERSELY AFFECT OUR OPERATIONS.

Our success to date has been strongly influenced by our ability to attract and to retain senior management experienced in banking in the markets we serve. Our ability to retain executive officers and the current management teams will continue to be important to successful implementation of our strategies. The unexpected loss of services of any key management personnel, or the inability to recruit and retain qualified personnel in the future, could have an adverse effect on our business and financial results.

WE DEPEND UPON THE ACCURACY AND COMPLETENESS OF INFORMATION ABOUT CUSTOMERS AND OTHER PARTIES.

In deciding whether to extend credit or enter into other transactions with customers and counterparties, we may rely on information provided to us by customers and other parties, including financial statements and other financial information. We may also rely on representations of customers and counterparties as to the accuracy and completeness of that information and, with respect to financial statements, on reports of independent auditors. For example, in deciding whether to extend credit to a business, we may assume that the customer’s audited financial statements conform with accounting principles generally accepted in the United States and present fairly, in all material respects, the financial condition, results of operations and cash flows of the customer. We may also rely on the audit report covering those financial statements. Our financial condition and results of operations could be negatively impacted to the extent we rely on financial statements that do not comply with generally accepted accounting principles or that are materially misleading, or on other financial information that is incomplete or materially misleading.

WE DO NOT HAVE ASSURANCE REGARDING THE FUTURE REVENUES OF OUR TAX REFUND PROGRAM.

The revenues from our tax refund program are based upon a contract with a third party. While the contract has a term of three years expiring October 31, 2022 and contains provisions for automatic renewal after that term, the amount to be paid to us is not fixed for any period after 2021. As a result, the amount paid to us may fluctuate, and there is no assurance that the parties will be able to negotiate compensation that is acceptable to us after that year.

FUTURE ACQUISITIONS OR OTHER EXPANSION MAY ADVERSELY AFFECT OUR FINANCIAL CONDITION AND RESULT OF OPERATIONS.

In the future, we may acquire other financial institutions or branches or assets of other financial institutions. We may also open new branches, enter into new lines of business, or offer new products or services.

On January I 0, 2022, we entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Comunibanc Corp. (“Comunicbanc”) pursuant to which we will acquire Comunibanc and its wholly-owned subsidiary, The Henry County Bank. It is anticipated that The Henry County Bank will be merged with and into Civista upon completion of the transaction, at which time The Henry County Bank’s seven banking offices located in Northwest Ohio will become offices of Civista. At September 30, 2021, Comunibanc and The Henry County Bank had total consolidated assets of $329 million, total loans of $165 million and total deposits of $276 million. The merger transaction is anticipated to be completed during the second quarter of 2022, subject to the satisfaction of closing conditions in the Merger Agreement and the approval of the appropriate regulatory authorities and of the shareholders of Comunibanc.

Any future acquisition or expansion of our business, including the contemplated acquisition of Comunibanc, will involve a number of expenses and risks, which may include some or all of the following:

• the time and expense associated with identifying and evaluating potential acquisitions or expansions;

• the potential inaccuracy of estimates and judgments used to evaluate credit, operations, management and market risk with respect to target institutions;

• the time and costs of evaluating new markets, hiring local management and opening new offices, and the delay between commencing these activities and the generation of profits from the expansion;

• any financing required in connection with an acquisition or expansion;

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• the diversion of management’s attention to the negotiation of a transaction and the integration of the operations and personnel of the combining businesses;

• entry into unfamiliar markets and the introduction of new products and services into our existing business;

• the possible impairment of goodwill associated with an acquisition and possible adverse short-term effects on our results of operations; and

• the risk of loss of key employees and customers.

We may incur substantial costs to expand, and we can give no assurance that such expansion will result in the levels of profits we expect. Neither can we assure that integration efforts for any future acquisitions will be successful. We may issue equity securities in connection with acquisitions, which could dilute the economic and voting interests of our existing shareholders.

LEGISLATIVE, LEGAL AND REGULATORY RISKS

LEGISLATIVE OR REGULATORY CHANGES OR ACTIONS COULD ADVERSELY IMPACT OUR BUSINESS.

The financial services industry is extensively regulated. We are subject to extensive state and federal regulation, supervision and legislation that govern almost all aspects of our operations. These laws and regulations are primarily intended for the protection of consumers, depositors, borrowers and the deposit insurance fund, not to benefit our shareholders.

Regulations affecting banks and financial services businesses are undergoing continuous change, particularly in light of COVID-19 and the stimulus programs issued in connection therewith, and management cannot predict the effect of those changes. While such changes are generally intended to lessen the regulatory burden on financial institutions, the impact of any changes to laws and regulations or other actions by regulatory agencies could adversely affect our business. Regulatory authorities have extensive discretion in connection with their supervisory and enforcement activities, including the ability to impose restrictions on the operation of an institution and the ability to determine the adequacy of an institution’s allowance for loan losses. Failure to comply with applicable laws, regulations and policies could result in sanctions being imposed by the regulatory agencies, including the imposition of civil money penalties, which could have a material adverse effect on our operations and financial condition. Even the reduction of regulatory restrictions could have an adverse effect on us if such lessening of restrictions increases competition within our industry or market areas.

DEPOSIT INSURANCE PREMIUMS MAY INCREASE AND HAVE A NEGATIVE EFFECT ON THE COMPANY’S RESULTS OF OPERATIONS.

The DIF maintained by the FDIC to resolve bank failures is funded by fees assessed on insured depository institutions. The costs of resolving bank failures increased for a period of time and decreased the DIF. The FDIC collected a special assessment in 2009 to replenish the DIF and also required a prepayment of an estimated amount of future deposit insurance premiums. If the costs of future bank failures increase, the deposit insurance premiums required to be paid by Civista may also increase. The FDIC recently adopted rules revising its assessments in a manner benefitting banks with assets totaling less than $10 billion. There can be no assurance, however, that assessments will not be changed in the future.

WE ARE SUBJECT TO EXAMINATIONS AND CHALLENGES BY TAX AUTHORITIES.

In the normal course of business, we are routinely subject to examinations and challenges from federal and state tax authorities regarding positions taken regarding their respective tax returns. State tax authorities have become increasingly aggressive in challenging tax positions taken by financial institutions, especially those positions relating to tax compliance and calculation of taxes subject to apportionment. Any challenge or examination by a tax authority may result in adjustments to the timing or amount of taxable net worth or taxable income, or deductions or the allocation of income among tax jurisdictions.

Management believes it has taken appropriate positions with respect to all tax returns and does not anticipate that any examination would have a material impact on our Consolidated Financial Statements. However, the outcome of such examinations and ultimate resolution of any resulting assessments are inherently difficult to predict. Thus, no assurance can be given that our tax liability for any tax year open to examination will be as reflected in our current and historical Consolidated Financial Statements.

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ACCOUNTING CHANGES COULD IMPACT OUR REPORTED FINANCIAL CONDITION OR RESULTS OF OPERATIONS.

The accounting standard setters, including the Financial Accounting Standards Board (the FASB), the SEC and other regulatory bodies, periodically change the financial accounting and reporting guidance that governs the preparation of our consolidated financial statements. The pace of change continues to accelerate and changes in accounting standards can be hard to predict and could materially impact how we record and report our financial condition and results of operations. In some cases, we could be required to apply new or revised guidance retroactively, resulting in the restatement of prior period financial statements.

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make significant estimates that affect the financial statements. Due to the inherent nature of these estimates, actual results may vary materially from management’s estimates. In June 2016, FASB issued a new accounting standard for recognizing current expected credit losses, commonly referred to as CECL. CECL will result in earlier recognition of credit losses and requires consideration of not only past and current events but also reasonable and supportable forecasts that affect collectability. The Company will be required to comply with the new standard in the first quarter of 2023. Upon adoption of CECL, credit loss allowances may increase, which would decrease retained earnings and regulatory capital. The federal banking regulators have adopted a regulation that will allow banks to phase in the day-one impact of CECL on regulatory capital over three years. CECL implementation poses operational risk, including the failure to properly transition internal processes or systems, which could lead to call report errors, financial misstatements, or operational losses.

WE MAY BE THE SUBJECT OF LITIGATION WHICH COULD RESULT IN LEGAL LIABILITY AND DAMAGE TO OUR BUSINESS AND REPUTATION.

From time to time, we may be subject to claims or legal action from customers, employees or others. Financial institutions like CBI and Civista are facing a growing number of significant class actions, including those based on the manner of calculation of interest on loans and the assessment of overdraft fees. Future litigation could include claims for substantial compensatory and/or punitive damages or claims for indeterminate amounts of damages. We are also involved from time to time in other reviews, investigations and proceedings (both formal and informal) by governmental and other agencies regarding our business. These matters also could result in adverse judgments, settlements, fines, penalties, injunctions or other relief. Like other large financial institutions, we are also subject to risk from potential employee misconduct, including non-compliance with policies and improper use or disclosure of confidential information. Substantial legal liability or significant regulatory action against us could materially adversely affect our business, financial condition or results of operations and/or cause significant reputational harm to our business.

WE COULD FACE LEGAL AND REGULATORY RISK ARISING OUT OF OUR RESIDENTIAL MORTGAGE BUSINESS.

Numerous federal and state governmental, legislative and regulatory authorities are investigating practices in the business of mortgage and home equity loan lending and servicing and in the mortgage-related insurance and reinsurance industries. We could face the risk of class actions, other litigation and claims from: the owners of or purchasers of such loans originated or serviced by us, homeowners involved in foreclosure proceedings or various mortgage-related insurance programs, downstream purchasers of homes sold after foreclosure, title insurers, and other potential claimants. Included among these claims are claims from purchasers of mortgage and home equity loans seeking the repurchase of loans where the loans allegedly breached origination covenants and representations and warranties made to the purchasers in the purchase and sale agreements. The CFPB has issued new rules for mortgage origination and mortgage servicing. Both the origination and servicing rules create new private rights of action for consumers against lenders and servicers in the event of certain violations.

RISKS RELATED TO OUR CAPITAL AND STOCK

WE MAY ELECT OR NEED TO RAISE ADDITIONAL CAPITAL IN THE FUTURE, BUT CAPITAL MAY NOT BE AVAILABLE WHEN IT IS NEEDED.

We are required by federal and state regulatory authorities to maintain adequate levels of capital to support our operations. In addition, federal banking agencies have recently finalized extensive changes to their capital requirements, including the adoption of the final “Basel III” rules as discussed above, which result in higher capital requirements and more restrictive leverage and liquidity ratios than those previously in place. If we experience significant loan losses, addition capital may need to be infused. In addition, we may elect to raise additional capital to support business growth and/or to finance acquisitions, if any, or we may otherwise elect or be required to raise additional capital. Our ability to raise additional capital, if needed, will depend on conditions in the capital markets, economic conditions and a number of other factors, many of which are outside our control, and are based on our financial performance. Accordingly, we cannot be assured of our ability to raise additional capital if needed or on terms acceptable to us. If we cannot raise additional capital when needed, it may have a material adverse effect on our financial condition, results of operations and prospects.

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WE ARE A HOLDING COMPANY AND DEPEND ON OUR SUBSIDIARY BANK FOR DIVIDENDS.

As a financial holding company, we are a legal entity separate and distinct from our subsidiaries and affiliates. Our principal source of funds to support our operations, pay dividends on our common and preferred shares and service our debt is dividends from our subsidiary bank, Civista. In the event that Civista is unable to pay dividends to us, we may not be able to service our debt, pay our other obligations or pay dividends on our common or preferred shares. Accordingly, our inability to receive dividends from Civista could also have a material adverse effect on our business, financial condition and results of operations.

Various federal and state statutory provisions and regulations limit the amount of dividends that Civista may pay to us without regulatory approval. Generally, subject to certain minimum capital requirements, Civista may declare a dividend without the approval of the ODFI so long as the total amount of the dividends in a calendar year does not exceed Civista’s total net income for that year combined with its retained net income for the two preceding years. In addition, the Federal Reserve has issued policy statements that provide that insured banks and bank holding companies should generally only pay dividends out of current operating earnings. Thus, the ability of Civista to pay dividends in the future is currently influenced, and could be further influenced, by bank regulatory policies and capital guidelines and may restrict our ability to declare and pay dividends on our common or preferred shares.

THE MARKET PRICE OF OUR COMMON SHARES MAY BE SUBJECT TO FLUCTUATIONS AND VOLATILITY.

The market price of our common shares may fluctuate significantly due to, among other things, changes in market sentiment regarding our operations or business prospects, the banking industry generally or the macroeconomic outlook. Factors that could impact our trading price include:

• our operating and financial results, including how those results vary from the expectations of management, securities analysts and investors;

• developments in our business or operations or in the financial sector generally;

• future offerings by us of debt or preferred shares, which would be senior to our common shares upon liquidation and for purposes of dividend distributions;

• legislative or regulatory changes affecting our industry generally or our business and operations specifically;

• the operating and stock price performance of companies that investors consider to be comparable to us;

• announcements of strategic developments, acquisitions and other material events by us or our competitors;

• actions by our current shareholders, including future sales of common shares by existing shareholders, including our directors and executive officers; and

• other changes in U.S. or global financial markets, global economies and general market conditions, such as interest or foreign exchange rates, stock, commodity, credit or asset valuations or volatility.

Equity markets in general and our common shares in particular have experienced considerable volatility over the past few years. The market price of our common shares may continue to be subject to volatility unrelated to our operating performance or business prospects. Increased volatility could result in a decline in the market price of our common shares.

THE SALE OF SUBSTANTIAL AMOUNTS OF OUR COMMON SHARES OR SECURITIES CONVERTIBLE INTO OUR COMMON SHARES IN THE PUBLIC MARKET COULD DEPRESS THE PRICE OF OUR COMMON SHARES.

In recent years, the stock market has experienced a high level of price and volume volatility, and market prices for the stock of many companies have experienced wide fluctuations that have not necessarily been related to their operating performance. Therefore, our shareholders may not be able to sell their shares at the volumes, prices, or times that they desire. We cannot predict the effect, if any, that future sales of our common shares or securities convertible into our common shares in the market, or availability of shares of our common shares or securities convertible into our common shares for sale in the market, will have on the market price of our common shares. We can give no assurance that sales of substantial amounts of our common shares or securities convertible into our common shares in the market, or the potential for large amounts of sales in the market, would not cause the price of our securities to decline or impair our ability to raise capital through sales of our common shares.

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GENERAL RISK FACTORS

ADVERSE CHANGES IN FINANCIAL MARKETS AND ECONOMIC CONDITIONS MAY ADVERSELY IMPACT OUR RESULTS OF OPERATIONS.

Although we primarily invest in securities issued by United States government agencies and sponsored entities and United States state and local governments with limited credit risk, certain of our investment securities possess higher credit risk since they represent beneficial interests in structured investments collateralized by residential mortgages, debt obligations and other similar assets. Even securities issued by United States government agencies and sponsored entities may entail risk depending on political and economic changes. Regardless of the level of credit risk, all investment securities are subject to changes in market value due to changing interest rates, implied credit spreads and credit ratings.

WE ARE AT RISK OF INCREASED LOSSES FROM FRAUD.

Criminals are committing fraud at an increasing rate and are using more sophisticated techniques. In some cases, these individuals are part of larger criminal rings, which allow them to be more effective. Such fraudulent activity has taken many forms, ranging from wire fraud, debit card fraud, check fraud, mechanical devices attached to ATM machines, social engineering and phishing attacks to obtain personal information, or impersonation of clients through the use of falsified or stolen credentials. Additionally, an individual or business entity may properly identify itself, yet seek to establish a business relationship for the purpose of perpetrating fraud. An emerging type of fraud even involves the creation of synthetic identification in which fraudsters “create” individuals for the purpose of perpetrating fraud. Further, in addition to fraud committed directly against the Company, the Company may suffer losses as a result of fraudulent activity committed against third parties. Increased deployment of technologies, such as chip card technology, defray and reduce certain aspects of fraud; however, criminals are turning to other sources to steal personally identifiable information, such as unaffiliated healthcare providers and government entities, in order to impersonate the consumer and thereby commit fraud.

CHANGES IN TAX LAWS COULD ADVERSELY AFFECT OUR PERFORMANCE

We are subject to extensive federal, state and local taxes, including income, excise, sales/use, payroll, franchise, withholding and ad valorem taxes. Changes to tax laws could have a material adverse effect on our results of operations, fair values of net deferred tax assets and obligations of states and political subdivisions held in our investment securities portfolio. In addition, our customers are subject to a wide variety of federal, state and local taxes. Changes in taxes paid by our customers may adversely affect their ability to purchase homes or consumer products, which could adversely affect their demand for our loans and deposit products. In addition, such negative effects on our customers could result in defaults on the loans we have made and decrease the value of mortgage-backed securities in which we have invested.

WE NEED TO CONSTANTLY UPDATE OUR TECHNOLOGY IN ORDER TO COMPETE AND MEET CUSTOMER DEMANDS.

The financial services market, including banking services, is undergoing rapid technological changes with frequent introductions of new technology-driven products and services. In addition to better serving customers, the effective use of technology increases efficiency and may enable us to reduce costs. Our future success will depend, in part, on our ability to use technology to provide products and services that provide convenience to customers and to create additional efficiencies in our operations. Some of our competitors have substantially greater resources to invest in technological improvements. We may not be able to effectively implement new technology-driven products and services or be successful in marketing these products and services to our customers. Failure to successfully keep pace with technological changes affecting the financial services industry could negatively affect our growth, revenue and profit.

WE ARE SUBJECT TO ENVIRONMENTAL LIABILITY RISK ASSOCIATED WITH CIVISTA’S LENDING ACTIVITIES. A significant portion of Civista’s Joan portfolio is secured by real property. During the ordinary course of business, Civista forecloses on and takes title to properties securing certain loans. In doing so, there is a risk that hazardous or toxic substances could be found on these properties. If hazardous or toxic substances are found, Civista may be liable for remediation costs, as well as for personal injury and property damage. Environmental laws and evolving regulation may require Civista to incur substantial expenses and may materially reduce the affected property’s value or limit Civista’s ability to use or sell the affected property. In addition, future laws and regulations or more stringent interpretations or enforcement policies with respect to existing laws or regulations may increase Civista’s exposure to environmental liability. Environmental reviews of real property before initiating foreclosure actions may not be sufficient to detect all potential environmental hazards. The remediation costs and any other financial liabilities associated with an environmental hazard could have a material adverse effect on our business, financial condition and results of operations.

33

CLIMATE CHANGE, SEVERE WEATHER, NATURAL DISASTERS, ACTS OF WAR OR TERRORISM AND OTHER EXTERNAL EVENTS COULD SIGNIFICANTLY IMPACT OUR BUSINESS.

Natural disasters, including severe weather events of increasing strength and frequency due to climate change, acts of war or terrorism, and other adverse external events could have a significant impact on our ability to conduct business or upon third parties who perform operational services for us or our customers. Such events could affect the stability of our deposit base, impair the ability of borrowers to repay outstanding loans, impair the value of collateral securing loans, cause significant property damage, result in lost revenue or cause us to incur additional expenses.

Item 1B. Unresolved Staff Comments

None.

Item 2. Properties

CBI neither owns nor leases any properties. Civista owns its main office at 100 East Water Street, Sandusky, Ohio, which is also the office of CBI. Civista also owns branch banking offices in the following Ohio and Indiana communities: Sandusky (2), Norwalk (2), Berlin Heights, Willard, Castalia, Port Clinton, New Washington, Shelby (2), Greenwich, Plymouth, Shiloh, Dublin, Plain City, Russells Point, Urbana (2), Dayton (2), Quincy, Lawrenceburg (3), Aurora, West Harrison, Milan, Osgood and Versailles. Civista leases branch banking offices in the Ohio communities of Akron, Huron, West Liberty, Dayton, and Beachwood. Civista also leases loan production offices in Westlake, Ohio and Fort Mitchell, Kentucky.

Item 3. Legal Proceedings

In the ordinary course of their respective businesses, CBI or Civista or their respective properties may be named or otherwise subject as a plaintiff, defendant or other party to various pending and threatened legal proceedings and various actual and potential claims. In view of the inherent difficulty of predicting the outcome of such matters, CBI cannot state what the eventual outcome of any such matters will be. However, based on current knowledge and after consultation with legal counsel, management believes these proceedings will not have a material adverse effect on the consolidated financial position, results of operations or liquidity of CBI or Civista.

Item 4. Mine Safety Disclosures

Not Applicable

34

PART II

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Information regarding the market in which CBI’s common shares are traded is incorporated herein by reference from the information appearing under the caption “Common Shares and Shareholder Matters” located on page 4 of the 2021 Annual Report.

As of February 24, 2022, there were approximately 1,502 shareholders of record (not including the number of persons or entities holding stock in nominee or street name through various brokerage firms) of the Company’s common shares.

Information regarding the restrictions applicable to the Company’s payment of dividends is included under Item 1 of this Annual Report on Form 10-K and is incorporated herein by reference.

During the fourth quarter of 2021, the Company purchased common shares as follows:

Period	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs
October 1, 2021 -October 31, 2021		4,000	$	23.99		4,000	$	10,964,868
November 1, 2021 - November 30, 2021		10,752	$	23.72		10,752	$	10,709,821
December 1, 2021 - December 31, 2021		58,789	$	23.83		58,789	$	9,308,655
Total		73,541	$	23.83		73,541	$	9,308,655

On August 12, 2021, the Company publicly announced a common share repurchase program, which replaced the Company’s previous repurchase program that was announced on April 20, 2020 repurchase program and authorizes the Company to repurchase a maximum aggregate value of $13,500,000 of its outstanding common shares. The expiration date of the common share repurchase program is August 10, 2022. A total of 181,375 common shares had been repurchased for an aggregate purchase price of $4,191,345 as of December 31, 2021 under this repurchase program.

Item 6. [Reserved]

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operation

Information required by this item is incorporated herein by reference from the information appearing under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations” located on pages 5 through 19 of the 2021 Annual Report.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Information required by this item is incorporated herein by reference from the disclosures included under the caption “Quantitative and Qualitative Disclosures About Market Risk” on pages 19 through 21 of the 2021 Annual Report.

Item 8. Financial Statements and Supplementary Financial Data

Civista Bancshares, Inc.’s Report of Independent Auditors and Consolidated Financial Statements and accompanying notes are listed below and are incorporated herein by reference from pages 25 through 94 of the 2021 Annual Report (included as Exhibit 13.1 hereto).

Report of Independent Registered Public Accounting Firm on Financial Statements

Report of Independent Registered Public Accounting Firm (PCAOB ID: 686)

Consolidated Balance Sheets

December 31, 2021 and 2020

Consolidated Statements of Operations

For the years ended December 31, 2021, 2020 and 2019

35

Consolidated Statements of Comprehensive Income

For the years ended December 31, 2021, 2020 and 2019

Consolidated Statements of Changes in Shareholders’ Equity

For the years ended December 31, 2021, 2020 and 2019

Consolidated Statements of Cash Flows

For the years ended December 31, 2021, 2020 and 2019

Notes to Consolidated Financial Statements

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

The Company has had no disagreements with its independent accountants on matters of accounting principles or practices, financial statement disclosure, or auditing scope or procedure required to be reported under this Item.

Item 9A. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our Chief Executive Officer and our Principal Accounting Officer, we evaluated the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rule 13a-15 under the Exchange Act, as of the end of the fiscal year covered by this Annual Report on Form 10-K. Based upon that evaluation, our Chief Executive Officer and Principal Accounting Officer concluded that our disclosure controls and procedures as of December 31, 2021, were effective.

Reports on Internal Control Over Financial Reporting

The “Management’s Report on Internal Control over Financial Reporting” and the “Report of Independent Registered Public Accounting Firm on Internal Control over Financial Reporting” located on pages 24 through 27 of the 2021 Annual Report are incorporated herein by reference.

Changes in Internal Control over Financial Reporting

There were no changes in the Company’s internal control over financial reporting that occurred during the Company’s most recent fiscal quarter ended December 31, 2021 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Item 9B. Other Information

There was no information the Company was required to disclose in a current report on Form 8-K during the fourth quarter of 2021 that was not reported.

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Not Applicable

36

PART III

Item 10. Directors, Executive Officers, and Corporate Governance

The information contained under the captions “Proposal 1 – Election of Directors”, “Beneficial Ownership of Common Shares of the Corporation – Delinquent – Section 16(a) Reports”, “Board of Director Meetings and Committees – Audit Committee”, “Corporate Governance – Code of Ethics”, “Corporate Governance – Nominating Procedure” and “Executive Officers of the Corporation” in the 2022 Proxy Statement is incorporated herein by reference in response to this Item.

Item 11. Executive Compensation.

The information contained under the captions “2021 Compensation of Directors”, “Compensation Committee Interlocks and Insider Participation” and “Executive Compensation” in the 2022 Proxy Statement is incorporated herein by reference in response to this Item.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

The information contained under the caption “Beneficial Ownership of Common Shares of the Company” in the 2022 Proxy Statement is incorporated herein by reference in response to this Item.

The following table shows the number of common shares remaining available for awards under the Company’s 2014 Incentive Plan at December 31, 2021.

Equity Compensation Plan Information
Plan category	(a) Number of Common Shares to be issued upon exercise of outstanding options, warrants and rights (a)	(b) Weighted-average exercise price of outstanding options, warrants and rights (b)	(c) Number of Common Shares remaining available for future issuance under equity compensation plans (excluding common shares reflected in column (a) )
Equity compensation plans approved by shareholders	—	—	154,123
Equity compensation plans not approved by shareholders	—	—	—
Total	—	—	154,123

Item 13. Certain Relationships and Related Transactions, and Director Independence.

The information contained under the caption “Corporate Governance – Director Independence” and “Corporate Governance – Transactions with Directors, Officers and Related Persons” in the 2022 Proxy Statement is incorporated herein by reference in response to this Item.

Item 14. Principal Accountant Fees and Services.

The information contained under the caption “Audit Committee Matters” of the 2022 Proxy Statement is incorporated herein by reference in response to this Item.

37

PART IV

Item 15. Exhibit and Financial Statement Schedules

(a) Documents filed as a Part of the Report

1. Financial Statements. Civista Bancshares, Inc.’s Report of Independent Auditors and Consolidated Financial Statements and accompanying notes are listed below and are incorporated herein by reference from pages 25 through 94 of the 2021 Annual Report (included as Exhibit 13.1 hereto).

Report of Independent Registered Public Accounting Firm on Financial Statements (PCAOB ID: 686)

Consolidated Balance Sheets

December 31, 2021 and 2020

Consolidated Statements of Operations

For the years ended December 31, 20210, 2020 and 2019

Consolidated Statements of Comprehensive Income

For the years ended December 31, 2021, 2020 and 2019

Consolidated Statements of Changes in Shareholders’ Equity

For the years ended December 31, 2021, 2020 and 2019

Consolidated Statements of Cash Flows

For the years ended December 31, 2021, 2020 and 2019

Notes to Consolidated Financial Statements

2. Financial Statement Schedules. All schedules are omitted because they are not applicable or the required information is shown in the financial statements or notes thereto.

3. Exhibits

Exhibit	Description	Location
2.1	Agreement and Plan of Merger, dated January 10, 2022 by and between Civista Bancshares, Inc. and Comunibanc Corp.	Filed as Exhibit 2.1 to Civista Bancshares, Inc.’s Current Report on Form 8-K dated and filed on January 10, 2022 and incorporated herein by reference. (File No. 001-36192).
3.1	Second Amended and Restated Articles of Incorporation of Civista Bancshares, Inc., as filed with the Ohio Secretary of State on November 15, 2018	Filed as Exhibit 3.1 to Civista Bancshares, Inc.’s Current Report on Form 8-K dated and filed on November 16, 2018 and incorporated herein by reference (File No. 001-36192).
3.2	Amended and Restated Code of Regulations of Civista Bancshares, Inc. (adopted April 15, 2008).	Filed as Exhibit 3.2 to Civista Bancshares, Inc.’s Quarterly Report on Form 10-Q for the period ended September 30, 2017, filed on November 8, 2017 and incorporated herein by reference. (File No. 001-36192)
4.1	Indenture dated November 30, 2021, by and between Civista Bancshares, Inc. and UMB Bank, National Association, as Trustee.	Filed as Exhibit 4.1 to Civista Bancshares, Inc.’s Current Report on Form 8-K dated and filed on November 30, 2022 and incorporated herein by reference (File No. 001-36192).
4.2	Forms of 3.25% Fixed-to-Floating Rate Subordinated Notes due 2031.	Included as Exhibit A-1 and Exhibit A-2 to the Indenture filed as Exhibit 4.1 hereto.

38

Exhibit	Description	Location
4.3	Agreement to furnish instrument and agreements defining rights of holders of long-term debt.	Included herewith.
4.4	Description of Capital Stock of Civista Bancshares, Inc.	Filed as Exhibit 4.2 to Civista Bancshares, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2021, filed on March 15, 2021 and incorporated herein by reference (File No. 001-36192).
10.1*	Form of Change of Control Agreement by and among Civista Bancshares, Inc., Civista Bank and certain executive officers.	Filed as Exhibit 10.1 to Civista Bancshares, Inc.’s Current Report on Form 8-K dated and filed on March 8, 2019 and incorporated herein by reference. (File No. 001-36192).
10.2*	Form of Amended and Restated Change of Control Agreement by and among Civista Bancshares, Inc., Civista Bank and certain executive officers.	Filed as Exhibit 10.1 to Civista Bancshares, Inc.’s Current Report on Form 8-K dated and filed on March 8, 2019 and incorporated herein by reference. (File No. 001-36192).
10.3*	Form of Pension Shortfall Agreement by and among Civista Bancshares, Inc., Civista Bank and certain executive officers.	Filed as Exhibit 10.2 to Civista Bancshares, Inc.’s Current Report on Form 8-K dated and filed on October 29, 2015 and incorporated herein by reference. (File No. 001-36192).
10.4*	Supplemental Nonqualified Executive Retirement Plan	Filed as Exhibit 10.12 to Civista Bancshares, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2011, filed on March 15, 2012 and incorporated herein by reference (File No. 0-25980).
10.5*	Amendment to Supplemental Nonqualified Executive Retirement Plan	Filed as Exhibit 10.13 to Civista Bancshares, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2011, filed on March 15, 2012 and incorporated herein by reference (File No. 0-25980).
10.6*	Second Amendment to Supplemental Nonqualified Executive Retirement Plan	Filed as Exhibit 10.1 to Civista Bancshares, Inc.’s Quarterly Report on Form 10-Q for the period ended June 30, 2016, filed on August 9, 2016 and incorporated herein by reference (File No. 1-36192)
10.7*	2018 Amendment to Supplemental Nonqualified Executive Retirement Plan	Filed as Exhibit 10.1 to Civista Bancshares, Inc.’s Quarterly Report on Form 10-Q for the period ended June 30, 2018, filed on August 8, 2018 and incorporated herein by reference (File No. 1-36192).
10.8*	Civista Bancshares, Inc. 2014 Incentive Plan	Filed as Exhibit 10.1 to Civista Bancshares, Inc.’s Registration Statement on Form S-8 filed on February 26, 2015 and incorporated herein by reference (File No. 333-202316).
10.9*	Form of Restricted Stock Award Agreement under Civista Bancshares, Inc. 2014 Incentive Plan	Filed as Exhibit 10.8 to Civista Bancshares, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2018, filed on March 15, 2019 and incorporated herein by reference. (File No. 1-36192)
13.1	Civista Bancshares, Inc. 2021 Annual Report to Shareholders (not deemed filed except for portions which are specifically incorporated by reference in this Annual Report on Form 10-K)	Included herewith
21.1	Subsidiaries of CBI	Included herewith
23.1	Consent of BKD, LLP	Included herewith

39

Exhibit	Description	Location
23.2	Consent of S.R. Snodgrass, P.C.	Included herewith
31.1	Rule 13a-14(a)/15-d-14(a) Certification of Chief Executive Officer	Included herewith
31.2	Rule 13a-14(a)/15-d-14(a) Certification of Principal Accounting Officer	Included herewith
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	Included herewith
32.2	Certification of Principal Accounting Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	Included herewith
101	The following materials from Civista Bancshares, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2021, formatted in Inline XBRL (eXtensible Business Reporting Language) pursuant to Rule 405 of Regulation S-T: (i) Consolidated Balance Sheets as of December 31, 2021 and 2020; (ii) Consolidated Statements of Operations for each of the three years ended December 31, 2021, 2020 and 2019; (iii) Consolidated Statements of Comprehensive Income for each of the three years ended December 31, 2021, 2020 and 2019; (iv) Consolidated Statements of Changes in Shareholders’ Equity for each of the three years ended December 31, 2021, 2020 and 2019; (v) Consolidated Statement of Cash Flows for each of the three years ended December 31, 2021, 2020 and 2019; and (vi) Notes to Consolidated Financial Statements .
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

* Management contract or compensatory plan or arrangement

Item 16. Form 10-K Summary

Not Applicable

40

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) Civista Bancshares, Inc.
By	/s/ Dennis G. Shaffer
	Dennis G. Shaffer, President & CEO (Principal Executive Officer)

Date: March 15, 2022

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed on March 15, 2022 by the following persons (including a majority of the Board of Directors of the Registrant) in the capacities indicated:

/s/ Thomas A. Depler	/s/ Allen R. Nickles, CPA , CFE , CICA
Thomas A. Depler, Director	Allen R. Nickles, CPA, CFE , CICA , Director
/s/ Harry Singer	/s/ Julie A. Mattlin
Harry Singer, Director	Julie A. Mattlin, Director
/s/ Todd A. Michel	/s/ M. Patricia Oliver
Todd A. Michel, Senior Vice President,	M. Patricia Oliver, Director
(Principal Accounting Officer)
/s/ James O. Miller	/s/ Daniel J. White
James O. Miller, Chairman of the Board	Daniel J. White, Director
/s/ Dennis E. Murray, Jr.	/s/ Dennis G. Shaffer
Dennis E. Murray, Jr., Director	Dennis G. Shaffer, President & CEO, (Principal Executive Officer)
/s/ William F. Ritzmann
William F. Ritzmann, Director

41

EX-4.3

Exhibit 4.3

[CIVISTA BANCSHARES, INC. LETTERHEAD]

March 15, 2022

Securities and Exchange Commission

100 F Street, NE

Washington, DC 20549

Re: Civista Bancshares, Inc. Form 10-K for the fiscal year ended December 31, 2021

Ladies and Gentlemen:

Civista Bancshares, Inc., an Ohio corporation (“CBI”), is today filing an Annual Report on Form 10-K for the fiscal year ended December 31, 2021 (the Form 10-K), as executed on March 15, 2022.

Pursuant to the instructions relating to the Exhibits in Item 601(b)(4)(iii) of Regulation S-K, CBI hereby agrees to furnish the Commission, upon request, copies of instruments and agreements defining the rights of holders of its long-term debt and of the long-term debt of its consolidated subsidiaries, which are not being filed as exhibits to the Form 10-K. None of such long-term debt exceeds 10% of the total assets of CBI and its subsidiaries on a consolidated basis.

Very truly yours,

/s/ Dennis G. Shaffer

Dennis G. Shaffer

President and Chief Executive Officer

EX-13.1

Exhibit 13.1

ANNUAL REPORT

CONTENTS

Five –Year Selected Consolidated Financial Data	1
Common Shares and Shareholder Matters	4
General Development of Business	4
Management’s Discussion and Analysis of Financial Condition and Results of Operations	5
Quantitative and Qualitative Disclosures about Market Risk	19
Financial Statements
Management’s Report on Internal Control over Financial Reporting	24
Report of Independent Registered Public Accounting Firm on Internal Control Over Financial Statements	25
Report of Independent Registered Public Accounting Firm on Financial Statements	27
Consolidated Balance Sheets	30
Consolidated Statements of Operations	31
Consolidated Statements of Comprehensive Income	32
Consolidated Statements of Changes in Shareholders’ Equity	33
Consolidated Statements of Cash Flow	34
Notes to Consolidated Financial Statements	36

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Five-Year Selected Consolidated Financial Data

(Amounts in thousands, except per share data)

	Year ended December 31,
	2021		2020		2019		2018			2017
Statements of income:
Total interest and dividend income	$	101,742	$	99,865	$	98,054	$	73,677		$	58,594
Total interest expense		6,317		10,138		12,954		7,570			4,092
Net interest income		95,425		89,727		85,100		66,107			54,502
Provision for loan losses		830		10,112		1,035		780			—
Net interest income after provision for loan losses		94,595		79,615		84,065		65,327			54,502
Net gain (loss) on sale of securities		1,786		94		32		(413	)		12
Other noninterest income		29,666		28,088		22,411		18,544			16,322
Total noninterest income		31,452		28,182		22,443		18,131			16,334
Total noninterest expense		78,484		70,665		66,947		66,679			48,604
Income before federal income taxes		47,563		37,132		39,561		16,779			22,232
Federal income tax expense		7,017		4,940		5,683		2,640			6,360
Net income	$	40,546	$	32,192	$	33,878	$	14,139		$	15,872
Preferred stock dividends and discount accretion		—		—		647		959			1,244
Allocation of earnings and dividends to participating securities		173		98		87		—			—
Net income available to common shareholders	$	40,373	$	32,094	$	33,144	$	13,180		$	14,628
Per common share:
Net income available to common shareholders (basic)		2.63		2.00		2.12		1.10			1.48
Net income available to common shareholders (diluted)		2.63		2.00		2.01		1.02			1.28
Dividends declared		0.52		0.44		0.42		0.32			0.25
Book value		23.75		22.02		19.78		18.56			16.39
Average common shares outstanding:
Basic		15,353,215		16,080,863		15,612,868		11,971,786			9,906,856
Diluted		15,343,215		16,080,863		16,851,740		13,855,706			12,352,616
Year-end balances:
Loans, net	$	1,971,238	$	2,032,474	$	1,694,203	$	1,548,262		$	1,151,527
Securities		577,957		384,887		379,970		368,385			245,309
Total assets		3,011,983		2,762,918		2,309,557		2,138,954			1,525,857
Deposits		2,416,701		2,189,398		1,678,764		1,579,893			1,204,923
Borrowings		203,308		183,341		274,601		245,226			123,082
Shareholders’ equity		355,212		350,108		330,126		298,898			184,461
Average balances:
Loans, net	$	2,026,907	$	1,953,472	$	1,598,991	$	1,261,568		$	1,095,956
Securities		450,599		386,703		372,886		273,998			234,249
Total assets		3,032,382		2,754,708		2,241,111		1,742,823			1,526,387
Deposits		2,422,938		2,078,454		1,689,801		1,341,860			1,236,663
Borrowings		156,206		288,551		208,932		167,752			101,880
Shareholders’ equity		349,203		336,461		318,306		217,371			172,763

1

Five-Year Selected Ratios

	Year ended December 31,
	2021			2020			2019			2018			2017
Net interest margin (1)		3.47	%		3.70	%		4.31	%		4.21	%		4.01	%
Return on average total assets		1.34			1.17			1.51			0.81			1.04
Return on average shareholders’ equity		11.61			9.57			10.64			6.50			9.19
Dividend payout ratio		19.77			22.00			19.81			29.09			16.89
Average shareholders’ equity as a percent of average total assets		11.52			12.21			14.20			12.47			11.32
Net loan charge-offs (recoveries) as a percent of average total loans		(0.04	)		(0.01	)		(0.00	)		0.02			0.02
Allowance for loan losses as a percent of loans at year-end		1.33			1.22			0.86			0.88			1.13
Shareholders’ equity as a percent of total year-end assets		11.79			12.67			14.29			13.97			12.09

(1) Calculated on a tax-equivalent basis using an effective tax rate of 21% for 2021, 2020, 2019 and 2018 and 35% for 2017.

Shareholder Return Performance

Set forth below is a line graph comparing the five-year cumulative return of the common shares of Civista Bancshares, Inc. (ticker symbol CIVB), based on an initial investment of $100 on December 31, 2016 and assuming reinvestment of dividends, with the cumulative return of the Standard & Poor’s 500 Index, the NASDAQ Bank Index and the S&P U.S. BMI Banks Index. The comparative indices were obtained from SNL Securities and NASDAQ.

Annual Report on Form 10-K

A copy of the Company’s Annual Report on Form 10-K, as filed with the Securities and Exchange Commission, will be furnished, free of charge, to shareholders, upon written request to Lance A. Morrison, Secretary of Civista Bancshares, Inc., 100 East Water Street, Sandusky, Ohio 44870.

2

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3

Common Shares and Shareholder Matters

The common shares of Civista Bancshares, Inc. (“CBI”) trade on The NASDAQ Capital Market under the symbol “CIVB”. As of February 24, 2022, there were 14,888,915 common shares outstanding and held by approximately 1,502 shareholders of record (not including the number of persons or entities holding stock in nominee or street name through various brokerage firms).

CBI paid quarterly dividends on its common shares in the aggregate amounts of $0.52 per share and $0.44 per share in 2021 and 2020, respectively. The Company presently anticipates continuing to pay quarterly dividends in the future at similar levels, subject to compliance with applicable restrictions on the payment of dividends as discussed in the “Liquidity and Capital Resources” section of the Management’s Discussion and Analysis of Financial Condition and Results of Operations and in Note 18 to the Consolidated Financial Statements.

General Development of Business

(Amounts in thousands)

CBI was organized under the laws of the State of Ohio on February 19, 1987 and is a registered financial holding company under the Gramm-Leach-Bliley Financial Modernization Act of 1999, as amended. CBI and its subsidiaries are sometimes referred to together as the “Company”. The Company’s office is located at 100 East Water Street, Sandusky, Ohio. The Company had total consolidated assets of $3,011,983 at December 31, 2021.

CIVISTA BANK (“Civista”), owned by CBI since 1987, opened for business in 1884 as The Citizens National Bank. In 1898, Civista was reorganized under Ohio banking law and was known as The Citizens Bank and Trust Company. In 1908, Civista surrendered its trust charter and began operation as The Citizens Banking Company. The name Civista Bank was introduced during the first quarter of 2015 to solidify our dual Citizens/Champaign brand and distinguish ourselves from the many other banks using the “Citizens” name in our existing and prospective markets. Civista maintains its main office at 100 East Water Street, Sandusky, Ohio and operates branch banking offices in the following Ohio communities: Sandusky (2), Norwalk (2), Berlin Heights, Huron, Port Clinton, Castalia, New Washington, Shelby (2), Willard, Greenwich, Plymouth, Shiloh, Akron, Dublin, Plain City, Russells Point, Urbana (2), West Liberty, Quincy, Dayton (3), Beachwood, and in the following Indiana communities: Lawrenceburg (3), Aurora, West Harrison, Milan, Osgood and Versailles. Civista also operates loan production offices in Westlake, Ohio and Fort Mitchell, Kentucky. Civista accounted for 99.8% of the Company’s consolidated assets at December 31, 2021.

FIRST CITIZENS INSURANCE AGENCY INC. (“FCIA”) was formed to allow the Company to participate in commission revenue generated through its third party insurance agreement. Assets of FCIA were less than one percent of the Company’s consolidated assets as of December 31, 2021.

WATER STREET PROPERTIES, INC. (“WSP”) was formed to hold properties repossessed by CBI subsidiaries. WSP accounted for less than one percent of the Company’s consolidated assets as of December 31, 2021.

FC REFUND SOLUTIONS, INC. (“FCRS”) was formed during 2012 to facilitate payment of individual state and federal income tax refunds. The operations of FCRS were discontinued June 30, 2019 as a result of inactivity due to FCRS no longer being necessary to facilitate the Company’s continuing participation in the tax refund processing program.

FIRST CITIZENS INVESTMENTS, INC. (“FCI”) is wholly-owned by Civista and holds and manages its securities portfolio. The operations of FCI are located in Wilmington, Delaware.

FIRST CITIZENS CAPITAL LLC (“FCC”) is wholly-owned by Civista and holds inter-company debt that is eliminated in consolidation. The operations of FCC were discontinued December 31, 2021 as a result of inactivity.

CIVB RISK MANAGEMENT, INC. (“CRMI”) is a wholly-owned captive insurance company formed in 2017 which insures against certain risks unique to the operations of the Company and its subsidiaries and for which insurance may not be currently available or economically feasible in today’s insurance marketplace. Assets of CRMI were less than one percent of the Company’s consolidated assets as of December 31, 2021.

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Management’s Discussion and Analysis of Financial Condition and Results of Operations—As of December 31, 2021 and December 31, 2020 and for the Years Ended December 31, 2021, 2020 and 2019

(Amounts in thousands, except per share data)

General

The following paragraphs more fully discuss the significant highlights, changes and trends as they relate to the Company’s financial condition, results of operations, liquidity and capital resources as of December 31, 2021 and 2020, and during the three-year period ended December 31, 2021. This discussion should be read in conjunction with the Consolidated Financial Statements and Notes to the Consolidated Financial Statements, which are included elsewhere in this report.

Forward-Looking Statements

This report may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), relating to such matters as financial condition, anticipated operating results, cash flows, business line results, credit quality expectations, prospects for new lines of business, economic trends (including interest rates) and similar matters. Forward-looking statements reflect our expectations, estimates or projections concerning future results or events. These statements are generally identified by the use of forward-looking words or phrases such as “believe,” “belief,” “expect,” “anticipate,” “may,” “could,” “intend,” “intent,” “estimate,” “plan,” “foresee,” “likely,” “will,” “should” or other similar words or phrases. Forward-looking statements are not guarantees of performance and are inherently subject to known and unknown risks, uncertainties and assumptions that are difficult to predict and could cause our actual results, performance or achievements to differ materially from those expressed in or implied by the forward-looking statements. Factors that could cause actual results, performance or achievements to differ from those discussed in the forward-looking statements include, but are not limited to, impacts on our business, financial condition and results of operations resulting from the ongoing COVID-19 pandemic, including government regulations and stimulus programs related thereto; changes in financial markets or national or local economic or political conditions; adverse changes in the real estate market; volatility and direction of market interest rates; the transition away from LIBOR as a reference rate for financial contracts; credit risks of lending activities; operational risks; changes in the allowance for loan losses; legislation or regulatory changes or actions; increases in FDIC insurance premiums and assessments; changes in tax laws or examinations or challenges by tax authorities; accounting changes; inability to raise additional capital if and when needed in the future; unexpected losses of key management; failure, interruption or breach of security of our communications and information systems or those of our third party service providers; unforeseen litigation; increased competition in our market area; failures to manage growth and/or effectively integrate acquisitions; fluctuations in the market price of our common shares; future revenues of our tax refund processing program; climate change, natural disasters, acts of war or terrorism, and other external events; and other risks identified from time-to-time in the Company’s other public documents on file with the Securities and Exchange Commission.

The forward-looking statements included in this report are only made as of the date of this report, and we disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances, except as required by law.

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements, and the purpose of this section is to secure the use of the safe harbor provisions.

Financial Condition

At December 31, 2021, the Company’s total assets were $3,011,983, compared to $2,768,862 at December 31, 2020. The increase in assets is primarily the result of increases in cash and due from financial institutions and securities available for sale, offset by decreases in loans held for sale, loans and swap assets. Other factors contributing to the change in assets are discussed in the following sections.

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Loans held for sale decreased $5,029, or 71.8%, from $7,001 at December 31, 2020 to $1,972 at December 31, 2021. The decrease is due to a decrease in refinances, resulting in lower volume. At December 31, 2021, 14 loans totaling $1,972 were held for sale as compared to 29 loans totaling $7,001 at December 31, 2020.

At December 31, 2021, the Company’s net loans totaled $1,971,238 and decreased by 3.0% from $2,032,474 at December 31, 2020. The decrease in net loans was spread across most segments. Commercial & Agriculture loans decreased $163,374, Residential Real Estate loans decreased $12,528, Real Estate Construction loans decreased $18,482, Farm Real Estate loans decreased $4,683 and Consumer and Other loans decreased $1,833. The decrease in Commercial & Agriculture loans is the result of forgiveness of Paycheck Protection Program (“PPP”) loans totaling $177,035 at December 31, 2021. The decreases in the foregoing loan segments were offset by increases in Commercial Real Estate – Owner Occupied loans of $17,039 and Commercial Real Estate - Non-Owner Occupied loans of $124,238.

Securities available for sale increased by $196,410, or 54.0%, from $363,464 at December 31, 2020 to $559,874 at December 31, 2021. U.S. Treasury securities and obligations of U.S. government agencies increased $26,197, or 120.8% from $21,693 at December 31, 2020 to $47,890 at December 31, 2021. Obligations of states and political subdivisions available for sale increased by $69,824 from 2020 to 2021. Mortgage-backed securities increased by $100,389 to total $213,148 at December 31, 2021. The Company continues to utilize letters of credit from the Federal Home Loan Bank (FHLB) to replace maturing securities that were pledged for public entities. As of December 31, 2021, the Company was in compliance with all applicable pledging requirements.

Mortgage-backed securities totaled $213,148 at December 31, 2021 and none were considered unusual or “high risk” securities as defined by regulatory authorities. Of this total, $208,289 consisted of pass-through securities issued by the Federal National Mortgage Association (“FNMA”), Federal Home Loan Mortgage Corporation (“FHLMC”), and Government National Mortgage Association (“GNMA”), and $4,859 of these securities were collateralized by mortgage-backed securities issued or guaranteed by FNMA, FHLMC, or GNMA. The average interest rate of the mortgage-backed securities portfolio at December 31, 2021 was 2.4%. The average maturity at December 31, 2021 was approximately 7.8 years.

Securities available for sale had a fair value at December 31, 2021 of $559,874. This fair value includes unrealized gains of approximately $20,664 and unrealized losses of approximately $2,087. Net unrealized gains totaled $18,577 on December 31, 2021 compared to net unrealized gains of $27,148 on December 31, 2020. The change in unrealized gains is primarily due to changes in market interest rates. Note 2 to the Consolidated Financial Statements provides additional information on unrealized gains and losses.

Premises and equipment, net of accumulated depreciation, decreased $135 from December 31, 2020 to December 31, 2021. The decrease is the result of new purchases of $1,927, offset by disposals of $13, depreciation of $1,976 and transfers to available for sale of $73.

Accrued interest receivable decreased $2,036, or 21.6% from December 31, 2020 to December 31, 2021. The decrease is the result of COVID-19 pandemic related loan modifications returning to principal and/or interest payments.

Swap assets decreased $10,628 from December 31, 2020 to December 31, 2021. The decrease is primarily the result of decreases in the fair value of swap assets as compared to December 31, 2020.

Bank owned life insurance (BOLI) increased $665 from December 31, 2020 to December 31, 2021. The difference is the result of increases in the cash surrender value of the underlying insurance policies, offset by a redemption of $535 from death benefits.

Other assets increased $2,497 from December 31, 2020 to December 31, 2021. The increase is primarily the result of the recording of receivables with respect to $1,000 of AMT tax credits as a result of amending prior year tax returns and $535 for BOLI death claims receivable.

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Year-end deposit balances totaled $2,416,701 in 2021 compared to $2,189,398 in 2020, an increase of $277,303, or 10.4%. Overall, the increase in deposits at December 31, 2021 compared to December 31, 2020 included increases in noninterest bearing demand deposits of $68,097, or 9.4%, interest bearing demand accounts of $127,371, or 31.1%, and savings and money market accounts of $72,225, or 9.4%, offset by decreases in certificate of deposit accounts of $35,910, or 14.9%, and individual retirement accounts of $4,480, or 9.7%. Average deposit balances for 2021 were $2,488,105 compared to $2,078,454 for 2020, an increase of 19.7%. Noninterest bearing deposits averaged $907,591 for 2021, compared to $739,648 for 2020, increasing $167,943, or 22.7%. Savings, NOW, and MMDA accounts averaged $1,315,220 for 2021 compared to $1,050,544 for 2020. Average certificates of deposit decreased $22,968 to total an average balance of $265,294 for 2021. The increase in year over year average balances was impacted by the COVID-19 pandemic as the Company’s participation in originating PPP loans resulted in loan proceeds being deposited by borrowers into deposit accounts at Civista and customer deposits of stimulus checks and unemployment benefits also increased average deposit balances in 2021.

Borrowings from the FHLB of Cincinnati were $75,000 at December 31, 2021 compared to $125,000 at December 31, 2020, a decrease of $50,000. During the second quarter of 2021, the Company prepaid a $50,000 advance with a rate of 2.05% and a remaining maturity of approximately 8 years at a pre-tax loss of approximately $3,717. The prepayment penalty of $3,717 was recorded in other operating expenses on the Consolidated Statements of Operations. Additional detail regarding these borrowings can be found in Note 9 and Note 10 to the Consolidated Financial Statements.

Civista offers repurchase agreements in the form of sweep accounts to commercial checking account customers. These repurchase agreements totaled $25,495 at December 31, 2021 compared to $28,914 at December 31, 2020. U.S. Treasury securities and obligations of U.S. government agencies maintained under Civista’s control are pledged as collateral for the repurchase agreements. Additional detail related to these repurchase agreements can be found in Note 11 to the Consolidated Financial Statements.

Subordinated debentures were $102,813 at December 31, 2021 compared to $29,427 at December 31, 2020, an increase of $73,386. During the fourth quarter of 2021, the Company sold and issued $75,000 aggregate principal amount of its 3.25% Fixed-to-Floating Rate Subordinated Notes due 2031. Net proceeds from the sale of these subordinated notes was $73,386. Additional detail regarding the subordinated notes can be found in Note 12 to the Consolidated Financial Statements.

Swap liabilities decreased $10,692 from December 31, 2020 to December 31, 2021. The decrease is primarily the result of decreases in the fair value of swap liabilities as compared to December 31, 2020.

Total shareholders’ equity increased $5,104, or 1.5%, during 2021 to $355,212. The change in shareholders’ equity resulted from net income of $40,546, an increase in the Company’s pension liability, net of tax, of $973, a decrease in the fair value of securities available for sale, net of tax, of $6,772 and decreases due to the purchase of treasury shares and dividends on common shares of $22,309 and $8,036, respectively. Additionally, $702 was recognized as stock-based compensation in 2021 in connection with the grant of restricted common shares. For further explanation of these items, see Note 1, Note 14 and Note 15 to the Consolidated Financial Statements. The Company paid $0.52 per common share in dividends in 2021 compared to $0.44 per common share in dividends in 2020. Total outstanding common shares at December 31, 2021 were 14,954,200.

Total outstanding common shares at December 31, 2020 were 15,898,032. The decrease in common shares outstanding is the result of the repurchase of 988,465 common shares at an average repurchase price of $22.57. The Company repurchased 239,536 common shares pursuant to a stock repurchase program announced on May 4, 2020, which authorized the Company to repurchase a maximum aggregate value of $13,500 of the Company’s common shares until April 20, 2021. The Company repurchased 562,489 common shares pursuant to a stock repurchase program announced on April 20, 2021, which authorized the Company to repurchase a maximum aggregate value of $13,500 of the Company’s common shares until April 19, 2022. Finally, the

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Company repurchased 181,375 common shares pursuant to a stock repurchase program announced August 12, 2021, which replaced the April 20, 2021 repurchase program and authorizes the Company to repurchase up to a maximum of $13,500 of the Company’s common shares until August 10, 2022. An additional 5,065 common shares were surrendered by officers in 2021 to pay taxes upon vesting of restricted shares, and 3,298 restricted common shares were forfeited during the period. The decrease in common shares outstanding was offset by the grant of 39,139 restricted common shares to certain officers under the Company’s 2014 Incentive Plan and the grant of 8,792 common shares to directors of Civista as a retainer for their service. The ratio of total shareholders’ equity to total assets was 11.8% and 12.7%, at December 31, 2021 and 2020, respectively.

Results of Operations

The operating results of the Company are affected by general economic conditions, the monetary and fiscal policies of federal agencies and the regulatory policies of agencies that regulate financial institutions. The Company’s cost of funds is influenced by interest rates on competing investments and general market rates of interest. Lending activities are influenced by the demand for real estate loans and other types of loans, which in turn is affected by the interest rates at which such loans are made, general economic conditions and the availability of funds for lending activities.

The Company’s net income primarily depends on its net interest income, which is the difference between the interest income earned on interest-earning assets, such as loans and securities, and interest expense incurred on interest-bearing liabilities, such as deposits and borrowings. The level of net interest income is dependent on the interest rate environment and the volume and composition of interest-earning assets and interest-bearing liabilities. Net income is also affected by provisions for loan losses, service charges, gains on the sale of assets, other non-interest income, noninterest expense and income taxes.

Comparison of Results of Operations for the Years Ended December 31, 2021 and December 31, 2020

Net Income

The Company’s net income for the year ended December 31, 2021 was $40,546, compared to $32,192 for the year ended December 31, 2020. The change in net income was the result of the items discussed in the following sections.

Net Interest Income

Net interest income for 2021 was $95,425, an increase of $5,698, or 6.4%, from 2020. From 2020 to 2021, average earning assets increased 13.2%, interest income increased $1,877, and interest expense on interest-bearing liabilities decreased $3,821. The Company continually examines its rate structure to ensure that its interest rates are competitive and reflective of the current rate environment in which it competes.

Total interest income increased $1,877 to $101,742 for the year ended December 31, 2021, which is attributable to an increase of $1,793 in interest and fees on loans. This change was the result of an increase in the average balance of loans, accompanied by a slightly lower yield on the portfolio. The average balance of loans increased by $73,435, or 3.8%, to $2,026,907 for the year ended December 31, 2021, as compared to $1,953,472 for the year ended December 31, 2020. The loan yield decreased to 4.42% for 2021, from 4.49% in 2020.

Interest on taxable securities increased $114 to $5,473 for the year ended December 31, 2021, compared to $5,359 for the same period in 2020. The average balance of taxable securities increased $49,092 to $232,813 for the year ended December 31, 2021, as compared to $183,721 for the year ended December 31, 2020. The yield on taxable securities decreased 62 basis points to 2.41% for 2021, compared to 3.03% for 2020. Interest on tax-exempt securities increased $127 to $6,250 for the year ended December 31, 2021, compared to $6,123 for the same period in 2020. The average balance of tax-exempt securities increased $14,804 to $217,786 for the year ended December 31, 2021 as compared to $202,982 for the year ended December 31, 2020. The yield on tax-exempt securities decreased 19 basis points to 3.96% for 2021, compared to 4.15% for 2020.

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Total interest expense decreased $3,821 or 37.7% to $6,317 for the year ended December 31, 2021, compared with $10,138 for the same period in 2020. The decrease in interest expense can be attributed to a decrease in the average rate paid, partially offset by an increase in the average balance of interest-bearing liabilities. For the year ended December 31, 2021, the average balance of interest-bearing liabilities increased $109,363 to $1,736,720, as compared to $1,627,357 for the year ended December 31, 2020. Interest incurred on deposits decreased by $2,706 to $4,175 for the year ended December 31, 2021, compared to $6,881 for the same period in 2020. The decrease in deposit expense was due to a decrease in the average rate paid, as the average rate paid on demand and savings accounts decreased from 0.17% in 2020 to 0.09% in 2021 and the average rate paid on time deposits decreased from 1.76% to 1.11% in 2021, which was partially offset by an increase in the average balance of interest-bearing deposits of $241,708 for the year ended December 31, 2021 as compared to the same period in 2020. Interest expense incurred on FHLB advances and subordinated debentures decreased 26.4% from 2020. The decrease was due to a $32,674 decrease in average balance from 2020 and a decrease in rate from 2020. The average balance of other borrowings decreased $101,295 for the period ended December 31, 2021 as compared to the same period in 2020 as a result of the Company’s repayment of amounts borrowed under the Paycheck Protection Program Liquidity Facility (“PPPLF”) to fund PPP loans.

Refer to “Distribution of Assets, Liabilities and Shareholders’ Equity; Interest Rates and Interest Differential” and “Changes in Interest Income and Interest Expense Resulting from Changes in Volume and Changes in Rate” on pages 14 through 16 for further analysis of the impact of changes in interest-bearing assets and liabilities on the Company’s net interest income.

Provision and Allowance for Loan Losses

The following table contains information relating to the provision for loan losses, activity in and analysis of the allowance for loan losses as of and for each of the three years in the period ended December 31.

	As of and for year ended December 31,
	2021			2020			2019
Net loan charge-offs (recoveries)	$	(783	)	$	(149	)	$	(53	)
Provision for loan losses charged to expense		830			10,112			1,035
Net loan charge-offs (recoveries) as a percent of average outstanding loans		(0.04	)%		(0.01	)%		(0.00	)%
Allowance for loan losses	$	26,641		$	25,028		$	14,767
Allowance for loan losses as a percent of year-end outstanding loans		1.33	%		1.22	%		0.86	%
Impaired loans, excluding purchase credit impaired loans (PCI)	$	1,222		$	2,666		$	3,597
Impaired loans as a percent of gross year-end loans (1)		0.06	%		0.13	%		0.21	%
Nonaccrual and 90 days or more past due loans, excluding PCI	$	3,673		$	5,125		$	5,599
Nonaccrual and 90 days or more past due loans, excluding PCI as a percent of gross year-end loans (1)		0.18	%		0.25	%		0.33	%

(1) Nonaccrual loans and impaired loans are defined differently. Some loans may be included in both categories, whereas other loans may only be included in one category. A loan is considered nonaccrual if it is maintained on a cash basis because of deterioration in the borrower’s financial condition, where payment in full of principal or interest is not expected and where the principal and interest have been in default for 90 days, unless the asset is both well-secured and in process of collection. A loan is considered impaired when it is probable that all of the interest and principal due will not be collected according to the terms of the original contractual agreement.

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The Company’s policy is to maintain the allowance for loan losses at a level sufficient to provide for probable losses incurred in the current portfolio. Management believes the analysis of the allowance for loan losses supported a reserve of $26,641 at December 31, 2021. The Company provides for loan losses through regular provisions to the allowance for loan losses as necessary. The amount of the provision is affected by loan charge-offs, recoveries and changes in specific and general allocations required for the allowance for loan losses. A number of factors impact the provisions for loan losses, such as the level of higher risk loans in the portfolio, changes in practices related to loans, changes in collateral values and other factors. We continue to actively manage this process and have provided to maintain the reserve at a level that assures adequate coverage ratios.

Provisions for loan losses totaled $830, $10,112 and $1,035 in 2021, 2020 and 2019, respectively. The Company’s provision for loan losses decreased $9,282 during 2021, as compared to 2020. The decrease in the provision was due to the stability of our credit quality metrics coupled with the stabilization and, in some cases, improvement of international, national, regional and local economic conditions that were adversely impacted by the 2020 economic shutdown and restrictions in response to the ongoing COVID-19 pandemic. While vaccinations and booster shots in 2021 have created some level of optimism in the business community, there remains uncertainty due to the continued concern over increased infections from the Delta and Omicron variants of COVID. We remain cautious given the level of classified loans in the portfolio, particularly loans to borrowers in the hotel industry as well as the challenges businesses face in today’s environment. The lingering economic impacts related to the COVID-19 pandemic have included the loss of revenue experienced by our business clients, disruption of supply chains, higher employee wages coupled with workforce shortages and increased costs of materials and services. While some of the pressures have eased, ongoing supply chain and staffing challenges, as well as inflationary pressures remain. Our Commercial and Commercial Real Estate portfolios have been, and are expected to continue to be, impacted the most.

Efforts are continually made to analyze each segment of the loan portfolio and quantify risk to assure that reserves are appropriate for each segment and the overall portfolio. Management specifically evaluates loans that are impaired, which includes restructured loans, to estimate potential loss. This analysis includes a review of the loss migration calculation for all loan categories as well as fluctuations and trends in various risk factors that have occurred within the portfolios’ economic life cycle. The analysis also includes assessment of qualitative factors such as credit trends, unemployment trends, vacancy trends and loan growth. The composition and overall level of the loan portfolio and charge-off activity are also factors used to determine the amount of the allowance for loan losses.

Management analyzes each impaired commercial and commercial real estate loan relationship with a balance of $350 or larger, on an individual basis and when it is in nonaccrual status or when an analysis of the borrower’s operating results and financial condition indicates that underlying cash flows are not adequate to meet its debt service requirements. Loans held for sale and leases are excluded from consideration as impaired. Loans are generally moved to nonaccrual status when 90 days or more past due. Impaired loans or portions thereof are charged-off when deemed uncollectible.

Noninterest Income

Noninterest income increased $3,270, or 11.6%, to $31,452 for the year ended December 31, 2021, from $28,182 for the comparable 2020 period. The increase was primarily due to increases in service charges of $617, net gain on sale of securities of $1,692, net gain (loss) on equity securities of $243, ATM/Interchange fees of $971, wealth management fees of $876, BOLI income of $223 and other noninterest income of $498, which were partially offset by decreases in net gain on sale of loans of $521 and swap fees of $1,252.

Service charges increased due to increased account service charges and overdraft fees of $510 and $107, respectively. Net gain on sale of securities increased due to the sale of Visa Class B shares, which resulted in a gain of $1,785. Management, from time to time, will reposition the investment portfolio to match liquidity needs of the Company. Net gain (loss) on equity securities increased as a result of market value increases. Net gain on sale of loans decreased primarily as a result of a decrease in volume of loans sold. During the twelve-months

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ended December 31, 2021, 1,341 loans were sold, totaling $260,294. During the twelve-months ended December 31, 2020, 1,575 loans were sold, totaling $304,026. ATM/Interchange fees increased as a result of increased transaction fees and MasterCard fees. Wealth management fees increased primarily as a result of an increase in trust and brokerage fees of $633 and $243, respectively. Trust income increased as a result of new accounts and market conditions while brokerage income increased due to volume of business. BOLI income increased due to death benefits paid. Swap fees decreased due to the volume of swaps performed during the twelve-months ended December 31, 2021 as compared to the same period of 2020. Other noninterest income increased due to increases in wire transfer fees, the amortization of mortgage servicing rights, merchant credit card fees and gains on the sale of OREO properties.

Noninterest Expense

Noninterest expense increased $7,819, or 11.1%, to $78,484 for the year ended December 31, 2021, from $70,665 for the comparable 2020 period. The increase was primarily due to increases in compensation expense of $2,210, FDIC assessments of $328, state franchise tax of $271, ATM/Interchange expense of $446, software maintenance expense of $922 and other operating expense of $3,905.

The increase in compensation expense was due to increased payroll, payroll taxes, employee insurance and employer savings contributions, offset by a decrease in commission and incentive based costs. The year-to-date average full time equivalent (FTE) employees were 451.8 at December 31, 2021, a decrease of 1.6 FTEs over 2020. Payroll and payroll related expenses increased due to annual pay increases. The year-over-year increase in FDIC assessments was attributable to small bank assessment credits applied to the 2020 assessment charges. The state franchise tax increase is related to $172 of additional taxes paid on the Company’s 2019 franchise tax return as a result of findings from a State of Ohio audit. The increase in ATM/Interchange expense is primarily due to increased transaction fees and a settlement received in the second quarter of 2020. The increase in software maintenance expense is due to a general increase in legacy software maintenance contracts and the implementation of our new digital banking. The increase in other operating expense is primarily due to the prepayment expense of $3,717 related to the early payoff of an FHLB long-term advance.

Income Tax Expense

Income tax expense was $7,017 in 2021 compared to $4,940 in 2020. Income tax expense as a percentage of pre-tax income was 14.8% in 2021 compared to 13.3% in 2020. A lower federal effective tax rate than the statutory rate of 21% in 2021 and 2020 is primarily due to tax-exempt interest income from state and municipal investments, municipal loans, income from BOLI and low income housing credits.

Comparison of Results of Operations for the Years Ended December 31, 2020 and December 31, 2019

Net Income

The Company’s net income for the year ended December 31, 2020 was $32,192, compared to $33,878 for the year ended December 31, 2019. The change in net income was the result of the items discussed in the following sections.

Net Interest Income

Net interest income for 2020 was $89,727, an increase of $4,627, or 5.4%, from 2019. From 2019 to 2020, average earning assets increased 23.3%, interest income increased $1,811, and interest expense on interest-bearing liabilities decreased $2,816.

Total interest income increased $1,811 to $99,865 for the year ended December 31, 2020, which is attributable to an increase of $2,805 in interest and fees on loans. This change was the result of an increase in the average balance of loans, accompanied by a lower yield on the portfolio. The average balance of loans increased by $340,497 or 21.1% to $1,953,472 for the year ended December 31, 2020, as compared to $1,612,975 for the year ended December 31, 2019. The loan yield decreased to 4.49% for 2020, from 5.27% in 2019.

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Interest on taxable securities decreased $1,225 to $5,359 for the year ended December 31, 2020, compared to $6,584 for the same period in 2019. The average balance of taxable securities decreased $16,353 to $183,721 for the year ended December 31, 2020, as compared to $200,074 for the year ended December 31, 2019. The yield on taxable securities decreased 32 basis points to 3.03% for 2020, compared to 3.35% for 2019. Interest on tax-exempt securities increased $476 to $6,123 for the year ended December 31, 2020, compared to $5,647 for the same period in 2019. The average balance of tax-exempt securities increased $30,170 to $202,982 for the year ended December 31, 2020 as compared to $172,812 for the year ended December 31, 2019. The yield on tax-exempt securities decreased 21 basis points to 4.15% for 2020, compared to 4.36% for 2019.

Total interest expense decreased $2,816 or 21.7% to $10,138 for the year ended December 31, 2020, compared with $12,954 for the same period in 2019. The decrease in interest expense can be attributed to a decrease in the average rate paid, partially offset by an increase in the average balance of interest-bearing liabilities. For the year ended December 31, 2020, the average balance of interest-bearing liabilities increased $279,262 to $1,627,357, as compared to $1,348,095 for the year ended December 31, 2019. Interest incurred on deposits decreased by $1,176 to $6,881 for the year ended December 31, 2020, compared to $8,057 for the same period in 2019. The decrease in deposit expense was due to a decrease in the average rate paid, as the average rate paid on demand and savings accounts decreased from 0.33% in 2019 to 0.17% in 2020 and the average rate paid on time deposits decreased from 1.92% to 1.76% in 2020, partially offset by an increase in the average balance of interest-bearing deposits of $199,643 for the year ended December 31, 2020 as compared to the same period in 2019. Interest expense incurred on FHLB advances and subordinated debentures decreased 41.0% from 2019. The decrease was due to a $27,896 decrease in average balance from 2019 and a decrease in rate from 2019. The average balance of other borrowings increased $101,295 for the period ended December 31, 2020 as compared to the same period in 2019 as a result of the Company’s borrowings under the PPPLF to fund PPP loans.

Refer to “Distribution of Assets, Liabilities and Shareholders’ Equity; Interest Rates and Interest Differential” and “Changes in Interest Income and Interest Expense Resulting from Changes in Volume and Changes in Rate” on pages 14 through 16 for further analysis of the impact of changes in interest-bearing assets and liabilities on the Company’s net interest income.

Provision and Allowance for Loan Losses

Management believes the analysis of the allowance for loan losses supported a reserve of $25,028 at December 31, 2020.

Provisions for loan losses totaled $10,112 and, $1,035 in 2020 and 2019, respectively. The Company’s provision for loan losses increased $9,077 during 2020. The increase in the provision was due to an increase in Civista’s qualitative factors, primarily changes in international, national, regional and local conditions, related to the economic shutdown driven by COVID-19 and the ongoing payment deferrals on loans modified under the Coronavirus Aid Relief, and Economic Security Act (“CARES Act”).

Noninterest Income

Noninterest income increased $5,739, or 25.6%, to $28,182 for the year ended December 31, 2020, from $22,443 for the comparable 2019 period. The increase was primarily due to increases in net gain on sale of securities of $62, net gain on sale of loans of $5,856, ATM/Interchange fees of $416 and swap fees of $943, which were partially offset by decreases in service charges of $1,107, net gain (loss) on equity securities of $178 and tax refund processing fees of $375.

Net gain on sale of securities increased due to security sales. Management, from time to time, will reposition the investment portfolio to match liquidity needs of the Company. Net gain on sale of loans increased primarily as a result of an increase in volume of loans sold. During the twelve-months ended December 31, 2020, 1,575 loans were sold, totaling $304,026. During the twelve-months ended December 31, 2019, 709 loans were sold, totaling $125,796. ATM/Interchange fees increased as a result of increased transaction volume. Swap fees increased due

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to the volume of swaps originated during the twelve-months ended December 31, 2020 as compared to the same period of 2019. Service charges decreased due to Civista waiving $93 of service fees on deposit accounts related to the COVID-19 pandemic. In addition, overdraft fees decreased during 2020. Net gain (loss) on equity securities decreased as a result of market value decreases. Additionally, the Company processes state and federal income tax refund payments for customers of third-party income tax preparation vendors for which we receive a fee for processing the refund payments. These tax refund processing fees decreased as a result of a decrease in the volume of transactions processed during 2020 as compared to 2019.

Noninterest Expense

Noninterest expense increased $3,718, or 5.6%, to $70,665 for the year ended December 31, 2020, from $66,947 for the comparable 2019 period. The increase was primarily due to increases in compensation expense of $3,324, FDIC assessments of $590 and software maintenance expense of $310, which were partially offset by decreases in equipment expense of $240 and marketing expense of $337.

The increase in compensation expense was due to increased payroll, overtime pay, 401k expenses, payroll taxes and commission and incentive based costs, offset by decreases in employee insurance costs and unemployment taxes. The year-to-date average full time equivalent (FTE) employees were 453.4 at December 31, 2020, an increase of 8.6 FTEs over 2019, which increased payroll and payroll related expenses. Payroll and payroll related expenses also increased due to annual pay increases and increases in commission based costs as the result of increased loan activity. The year-over-year increase in FDIC assessments was attributable to small bank assessment credits applied to the 2019 assessment charges. The increase in software maintenance expense is due to a general increase in software maintenance contracts. The decrease in equipment expense is due to lower equipment repair and maintenance cost. The decrease in marketing expense is due to decreases in both advertising and business promotion expenses, primarily related to the COVID-19 pandemic. Event cancellations and postponed outreach efforts contributed to the decrease as our focus was on communicating changes in operations, safety protocols, alternative delivery channels, and economic relief programs with the safety and financial wellness of our employees and customers in mind.

Income Tax Expense

Income tax expense was $4,940 in 2020 compared to $5,683 in 2019. Income tax expense as a percentage of pre-tax income was 13.3% in 2020 compared to 14.4% in 2019. A lower federal effective tax rate than the statutory rate of 21% in 2020 and 2019 is primarily due to tax-exempt interest income from state and municipal investments, municipal loans, income from BOLI and low income housing credits.

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Distribution of Assets, Liabilities and Shareholders’ Equity;

Interest Rates and Interest Differential

The following table sets forth, for the years ended December 31, 2021, 2020 and 2019, the distribution of assets, including interest amounts and average rates of major categories of interest-earning assets and noninterest-earning assets (Amounts in thousands):

	2021								2020								2019
Assets	Average balance			Interest		Yield/ rate			Average balance			Interest		Yield/ rate			Average balance			Interest		Yield/ rate
Interest-earning assets:
Loans (1)(2)(3)(5)	$	2,026,907		$	89,570		4.42	%	$	1,953,472		$	87,777		4.49	%	$	1,612,975		$	84,972		5.27	%
Taxable securities (4)		232,813			5,473		2.41	%		183,721			5,359		3.03	%		200,074			6,584		3.35	%
Non-taxable securities (4)(5)		217,786			6,250		3.96	%		202,982			6,123		4.15	%		172,812			5,647		4.36	%
Interest-bearing deposits in other banks		347,573			449		0.13	%		155,960			606		0.39	%		38,359			851		2.22	%
Total interest earning assets		2,825,079			101,742		3.69	%		2,496,135			99,865		4.10	%		2,024,220			98,054		4.95	%
Noninterest-earning assets:
Cash and due from financial institutions		35,404								77,848								47,472
Premises and equipment, net		22,617								22,831								21,946
Accrued interest receivable		8,010								9,043								7,088
Intangible assets		84,747								84,953								85,744
Other assets		36,456								37,675								24,273
Bank owned life insurance		46,435								45,454								44,352
Less allowance for loan losses		(26,366	)							(19,231	)							(13,984	)
Total	$	3,032,382							$	2,754,708							$	2,241,111

(1) For purposes of these computations, the daily average loan amounts outstanding are net of unearned income and include loans held for sale.

(2) Included in loan interest income are loan fees of $1,661 in 2021, $1,025 in 2020 and $1,227 in 2019.

(3) Non-accrual loans are included in loan totals and do not have a material impact on the analysis presented.

(4) Average balance is computed using the carrying value of securities. The average yield has been computed using the historical amortized cost average balance for available for sale securities.

(5) Yield/Rate is calculated using the tax-equivalent adjustment of 21% for 2020, 2019 and 2018.

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Distribution of Assets, Liabilities and Shareholders’ Equity;

Interest Rates and Interest Differential (Continued)

The following table sets forth, for the years ended December 31, 2021, 2020 and 2019, the distribution of liabilities, including interest amounts and average rates of major categories of interest-bearing liabilities and shareholders’ equity (Amounts in thousands):

	2021							2020							2019
Liabilities and Shareholders’ Equity	Average balance		Interest		Yield/ rate			Average balance		Interest		Yield/ rate			Average balance		Interest		Yield/ rate
Interest-bearing liabilities:
Savings and interest-bearing demand accounts	$	1,315,220	$	1,219		0.09	%	$	1,050,544	$	1,813		0.17	%	$	869,340	$	2,871		0.33	%
Certificates of deposit		265,294		2,956		1.11	%		288,262		5,068		1.76	%		269,823		5,186		1.92	%
Short-term Federal Home Loan Bank advances		—		—		—			8,151		134		1.64	%		112,088		2,600		2.32	%
Long-term Federal Home Loan Bank advances		94,041		1,163		1.24	%		125,000		1,798		1.44	%		48,959		852		1.74	%
Other borrowings		—		—		—			101,295		354		0.35	%		—		—		—
Securities sold under repurchase agreements		26,165		23		0.09	%		24,390		25		0.10	%		18,321		19		0.10	%
Federal funds purchased		137		1		0.73	%		288		1		0.35	%		137		3		2.19	%
Subordinated debentures		35,863		955		2.66	%		29,427		945		3.21	%		29,427		1,423		4.84	%
Total interest-bearing liabilities		1,736,720		6,317		0.36	%		1,627,357		10,138		0.62	%		1,348,095		12,954		0.96	%
Noninterest-bearing liabilities:
Demand deposits		907,591							739,648							550,638
Other liabilities		38,868							51,242							24,072
		946,459							790,890							574,710
Shareholders’ equity		349,203							336,461							318,306
Total	$	3,032,382						$	2,754,708						$	2,241,111
Net interest income and interest rate spread (1)			$	95,425		3.33	%			$	89,727		3.48	%			$	85,100		3.99	%
Net interest margin (2)						3.47	%						3.70	%						4.31	%

(1) Interest rate spread is calculated by subtracting the rate on average interest-bearing liabilities from the yield on average interest-earning assets.

(2) Net interest margin is calculated by dividing tax-equivalent adjusted net interest income by average interest-earning assets.

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Changes in Interest Income and Interest Expense

Resulting from Changes in Volume and Changes in Rate

The following table sets forth, for the periods indicated, a summary of the changes in interest income and interest expense resulting from changes in volume and changes in rate (Amounts in thousands):

	Increase (decrease) due to:
	Volume (1)			Rate (1)			Net
2021 compared to 2020
Interest income:
Loans	$	3,262		$	(1,469	)	$	1,793
Taxable securities		1,360			(1,246	)		114
Nontaxable securities		439			(312	)		127
Interest-bearing deposits in other banks		422			(579	)		(157	)
Total interest income	$	5,483		$	(3,606	)	$	1,877
Interest expense:
Savings and interest-bearing demand accounts	$	382		$	(976	)	$	(594	)
Certificates of deposit		(377	)		(1,735	)		(2,112	)
Short-term Federal Home Loan Bank advances		(134	)		—			(134	)
Long-term Federal Home Loan Bank advances		(405	)		(230	)		(635	)
Securities sold under repurchase agreements		2			(4	)		(2	)
Federal funds purchased		(1	)		1			—
Other borrowings		(354	)		—			(354	)
Subordinated debentures		187			(177	)		10
Total interest expense	$	(700	)	$	(3,121	)	$	(3,821	)
Net interest income	$	6,183		$	(485	)	$	5,698
2020 compared to 2019
Interest income:
Loans	$	16,383		$	(13,578	)	$	2,805
Taxable securities		(633	)		(592	)		(1,225	)
Nontaxable securities		761			(285	)		476
Interest-bearing deposits in other banks		913			(1,158	)		(245	)
Total interest income	$	17,424		$	(15,613	)	$	1,811
Interest expense:
Savings and interest-bearing demand accounts	$	512		$	(1,570	)	$	(1,058	)
Certificates of deposit		341			(459	)		(118	)
Short-term Federal Home Loan Bank advances		(1,877	)		(589	)		(2,466	)
Long-term Federal Home Loan Bank advances		1,117			(171	)		946
Securities sold under repurchase agreements		6			—			6
Federal funds purchased		2			(4	)		(2	)
Other borrowings		354			—			354
Subordinated debentures		—			(478	)		(478	)
Total interest expense	$	455		$	(3,271	)	$	(2,816	)
Net interest income	$	16,969		$	(12,342	)	$	4,627

(1) The change in interest income and interest expense due to changes in both volume and rate, which cannot be segregated, has been allocated proportionately to the change due to volume and the change due to rate.

Liquidity and Capital Resources

Civista maintains a conservative liquidity position. All securities are classified as available for sale. At December 31, 2021, securities with maturities of one year or less totaled $3,789, or 0.7% of the total securities portfolio. The available for sale portfolio helps to provide Civista with the ability to meet its funding needs. The Consolidated Statements of Cash Flows contained in the Consolidated Financial Statements detail the Company’s cash flows from operating activities resulting from net earnings.

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Net cash provided by operating activities for 2021, 2020 and 2019 was $40,761, $32,654 and $38,801, respectively. The primary additions to cash from operating activities are from net income, adjusted for amortization of intangible assets, amortization of securities net of accretion, the provision for loan losses, depreciation and proceeds from sale of loans. The primary use of cash from operating activities is from loans originated for sale. Net cash used for investing activities was $130,496, $340,982 and $150,764 in 2021, 2020 and 2019, respectively, principally reflecting our loan and investment security activities. Deposits and borrowings comprised most of our financing activities, which resulted in net cash provided of $216,925, $398,802 and $116,739 for 2021, 2020 and 2019, respectively.

Future loan demand of Civista can be funded by increases in deposit accounts, proceeds from payments on existing loans, the maturity of securities and the sale of securities classified as available for sale. Additional sources of funds may also come from borrowing in the Federal Funds market and/or borrowing from the FHLB. As of December 31, 2021, Civista had total credit availability with the FHLB of $677,834, of which $96,300 was outstanding, including standby letters of credit of $21,300.

On a separate entity basis, CBI’s primary source of funds is dividends paid by its subsidiaries, primarily by Civista. Generally, subject to applicable minimum capital requirements, Civista may declare and pay a dividend without the approval of the Federal Reserve Bank of Cleveland (the “Federal Reserve Bank”) and the State of Ohio Department of Commerce, Division of Financial Institutions, provided the total dividends in a calendar year do not exceed the total of its profits for that year combined with its retained profits for the two preceding years. At December 31, 2021, Civista was able to pay approximately $59,772 of dividends to CBI without obtaining regulatory approval. During 2021, Civista paid dividends totaling $19,900 to CBI. This represented approximately 49 percent of Civista’s earnings for the year.

The Company manages its liquidity and capital through quarterly Asset/Liability Management Committee (ALCO) meetings. The ALCO discusses issues like those in the above paragraphs as well as others that may affect the future liquidity and capital position of the Company. The ALCO also examines interest rate risk and the effect that changes in rates will have on the Company. For more information about interest rate risk, please refer to the “Quantitative and Qualitative Disclosures about Market Risk” section.

Capital Adequacy

Shareholders’ equity totaled $355,212 at December 31, 2021 compared to $350,108 at December 31, 2020. The increase in shareholders’ equity resulted primarily from net income of $40,546, a $973 net increase in the Company’s pension liability and a decrease in the fair value of securities available for sale, net of tax, of $6,772, which was offset by dividends on common shares of $8,036. In addition, the Company repurchased common shares pursuant to its publicly-announced share purchase programs totaling $22,309 during 2021.

During the first quarter of 2015, the Company adopted the new BASEL III regulatory capital framework as approved by the federal banking agencies. In addition to the other required capital ratios, the BASEL III rules also require the Company to maintain minimum amounts and ratios of Common Equity Tier 1 (“CET1”) Capital to risk-weighted assets (as these terms are defined in the BASEL III rules). Under the BASEL III rules, the Company elected to opt-out of including accumulated other comprehensive income in regulatory capital. All of the Company’s capital ratios exceeded the regulatory minimum guidelines as of December 31, 2021 and 2020 as identified in the following table:

	Total Risk Based Capital			Tier I Risk Based Capital			CET1 Risk Based Capital			Leverage Ratio
Company Ratios—December 31, 2021		19.2	%		14.3	%		12.9	%		10.2	%
Company Ratios—December 31, 2020		16.0	%		14.7	%		13.2	%		10.8	%
For Capital Adequacy Purposes		8.0	%		6.0	%		4.5	%		4.0	%
To Be Well Capitalized Under Prompt Corrective Action Provisions		10.0	%		8.0	%		6.5	%		5.0	%

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Common equity for the CET1 risk-based capital ratio includes common stock (plus related surplus) and retained earnings, plus limited amounts of minority interests in the form of common stock, less the majority of certain regulatory deductions.

Tier 1 capital includes common equity as defined for the CET1 risk-based capital ratio, plus certain non-cumulative preferred stock and related surplus, cumulative preferred stock and related surplus and trust preferred securities that have been grandfathered (but which are not permitted going forward), and limited amounts of minority interests in the form of additional Tier 1 capital instruments, less certain deductions.

Tier 2 capital, which can be included in the total capital ratio, includes certain capital instruments (such as subordinated debt) and limited amounts of the allowance for loan and lease losses, subject to new eligibility criteria, less applicable deductions.

The deductions from CET1 capital include goodwill and other intangibles, certain deferred tax assets, mortgage-servicing assets above certain levels, gains on sale in connection with a securitization, investments in a banking organization’s own capital instruments and investments in the capital of unconsolidated financial institutions (above certain levels). These deductions were phased in from 2015 through 2019.

Under applicable regulatory guidelines, capital is compared to the relative risk related to the balance sheet. To derive the risk included in the balance sheet, one of several risk weights is applied to different balance sheet and off-balance sheet assets, primarily based on the relative credit risk of the counterparty. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

The BASEL III regulatory capital rules and regulations also place restrictions on the payment of capital distributions, including dividends, and certain discretionary bonus payments to executive officers if the company does not hold a capital conservation buffer of greater than 2.5 percent composed of CET1 capital above its minimum risk-based capital requirements, or if its eligible retained income is negative in that quarter and its capital conservation buffer ratio was less than 2.5 percent at the beginning of the quarter. The capital conservation buffer began to phase in starting on January 1, 2016, at 0.625%, and was fully phased in effective January 1, 2019, at 2.5%. The implementation of Basel III did not have a material impact on CBI’s or Civista’ capital ratios.

Effects of Inflation

The Company’s balance sheet is typical of financial institutions and reflects a net positive monetary position whereby monetary assets exceed monetary liabilities. Monetary assets and liabilities are those which can be converted to a fixed number of dollars and include cash assets, securities, loans, money market instruments, deposits and borrowed funds.

During periods of inflation, a net positive monetary position may result in an overall decline in purchasing power of an entity. However, no clear evidence exists of a relationship between the purchasing power of an entity’s net positive monetary position and its future earnings. Moreover, the Company’s ability to preserve the purchasing power of its net positive monetary position will be partly influenced by the effectiveness of its asset/liability management program. As part of the asset/liability management process, management reviews and monitors information and projections on inflation as published by the Federal Reserve Board and other sources. This information speaks to inflation as determined by its impact on consumer prices and also the correlation of inflation and interest rates. This information is but one component in an asset/liability management process designed to limit the impact of inflation on the Company. Management does not believe that the effect of inflation on its nonmonetary assets (primarily bank premises and equipment) is material as such assets are not held for resale and significant disposals are not anticipated.

Fair Value of Financial Instruments

The Company has disclosed the fair value of its financial instruments at December 31, 2021 and 2020 in Note 16 to the Consolidated Financial Statements. The fair value of loans at December 31, 2021 was 100.7% of the carrying value compared to 101.5% at December 31, 2020. The fair value of deposits at December 31, 2021 was

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100.0% of the carrying value compared to 100.1% at December 31, 2020. Changes in fair value were primarily due to changes in the discount values used to measure fair value.

Contractual Obligations

The following table represents significant fixed and determinable contractual obligations of the Company as of December 31, 2021.

Contractual Obligations	One year or less		One to three years		Three to five years		Over five years		Total
Deposits without a stated maturity	$	2,170,253	$	—	$	—	$	—	$	2,170,253
Certificates of deposit and IRAs		174,022		64,005		7,425		996		246,448
FHLB advances, securities sold under agreements to repurchase and U.S. Treasury interest-bearing demand note		—		—		—		75,000		75,000
Subordinated debentures (1)		—		—		—		102,813		102,813
Operating leases		569		613		417		491		2,090

(1) The subordinated debentures consist of $2,000, $2,500, $5,000, $7,500, and $12,500 debentures.

The Company has retail repurchase agreements with clients within its local market areas. These borrowings are collateralized with securities owned by the Company. See Note 11 to the Consolidated Financial Statements for further detail. The Company also has a cash management advance line of credit and outstanding letters of credit with the FHLB. For further discussion, refer to Note 9 and Note 10 to the Consolidated Financial Statements.

Quantitative and Qualitative Disclosures about Market Risk

The Company’s primary market risk exposure is interest-rate risk and, to a lesser extent, liquidity risk. All of the Company’s transactions are denominated in U.S. dollars with no specific foreign exchange exposure.

Interest-rate risk is the exposure of a banking organization’s financial condition to adverse movements in interest rates. Accepting this risk can be an important source of profitability and shareholder value. However, excessive levels of interest-rate risk can pose a significant threat to the Company’s earnings and capital base. Accordingly, effective risk management that maintains interest-rate risk at prudent levels is essential to the Company’s safety and soundness.

Evaluating a financial institution’s exposure to changes in interest rates includes assessing both the adequacy of the management process used to control interest-rate risk and the organization’s quantitative level of exposure. When assessing the interest-rate risk management process, the Company seeks to ensure that appropriate policies, procedures, management information systems and internal controls are in place to maintain interest-rate risk at prudent levels with consistency and continuity. Evaluating the quantitative level of interest rate risk exposure requires the Company to assess the existing and potential future effects of changes in interest rates on its consolidated financial condition, including capital adequacy, earnings, liquidity and, where appropriate, asset quality.

The Federal Reserve Board, together with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, adopted a Joint Agency Policy Statement on interest-rate risk, effective June 26, 1996. The policy statement provides guidance to examiners and bankers on sound practices for managing interest-rate risk, which will form the basis for ongoing evaluation of the adequacy of interest-rate risk management at supervised institutions. The policy statement also outlines fundamental elements of sound management that have been identified in prior Federal Reserve guidance and discusses the importance of these elements in the context of managing interest-rate risk. Specifically, the guidance emphasizes the need for active board of director and senior management oversight and a comprehensive risk-management process that effectively identifies, measures, and controls interest-rate risk. Financial institutions derive their income primarily from the excess of

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interest collected over interest paid. The rates of interest an institution earns on its assets and owes on its liabilities generally are established contractually for a period of time. Since market interest rates change over time, an institution is exposed to lower profit margins (or losses) if it cannot adapt to interest-rate changes. For example, assume that an institution’s assets carry intermediate- or long-term fixed rates and that those assets were funded with short-term liabilities. If market interest rates rise by the time the short-term liabilities must be refinanced, the increase in the institution’s interest expense on its liabilities may not be sufficiently offset if assets continue to earn at the long-term fixed rates. Accordingly, an institution’s profits could decrease on existing assets because the institution will have either lower net interest income or, possibly, net interest expense. Similar risks exist when assets are subject to contractual interest-rate ceilings, or rate sensitive assets are funded by longer-term, fixed-rate liabilities in a decreasing-rate environment.

Several techniques may be used by an institution to minimize interest-rate risk. One approach used by the Company is to periodically analyze its assets and liabilities and make future financing and investment decisions based on payment streams, interest rates, contractual maturities, and estimated sensitivity to actual or potential changes in market interest rates. Such activities fall under the broad definition of asset/liability management. The Company’s primary asset/liability management technique is the measurement of the Company’s asset/liability gap, that is, the difference between the cash flow amounts of interest sensitive assets and liabilities that will be refinanced (or repriced) during a given period. For example, if the asset amount to be repriced exceeds the corresponding liability amount for a certain day, month, year, or longer period, the institution is in an asset sensitive gap position. In this situation, net interest income would increase if market interest rates rose or decrease if market interest rates fell.

If, alternatively, more liabilities than assets will reprice, the institution is in a liability sensitive position. Accordingly, net interest income would decline when rates rose and increase when rates fell. Also, these examples assume that interest rate changes for assets and liabilities are of the same magnitude, whereas actual interest rate changes generally differ in magnitude for assets and liabilities.

Several ways an institution can manage interest-rate risk include selling existing assets or repaying certain liabilities and matching repricing periods for new assets and liabilities, for example, by shortening terms of new loans or securities. Financial institutions are also subject to prepayment risk in falling rate environments. For example, mortgage loans and other financial assets may be prepaid by a debtor so that the debtor may refinance its obligations at new, lower rates. The Company does not have significant derivative financial instruments and does not intend to purchase a significant amount of such instruments in the near future. Prepayments of assets carrying higher rates reduce the Company’s interest income and overall asset yields. A large portion of an institution’s liabilities may be short term or due on demand, while most of its assets may be invested in long term loans or securities. Accordingly, the Company seeks to have in place sources of cash to meet short-term demands. These funds can be obtained by increasing deposits, borrowing, or selling assets. Also, FHLB advances and wholesale borrowings may be used as important sources of liquidity for the Company.

The following table provides information about the Company’s financial instruments that were sensitive to changes in interest rates as of December 31, 2021 and 2020, based on certain prepayment and account decay assumptions that management believes are reasonable. Although the Company had derivative financial instruments as of December 31, 2021 and 2020, the changes in fair value of the assets and liabilities of the underlying contracts offset each other. For more information about derivative financial instruments see Note 22 to the Consolidated Financial Statements. Expected maturity date values for interest-bearing core deposits were calculated based on estimates of the period over which the deposits would be outstanding. The Company’s borrowings were tabulated by contractual maturity dates and without regard to any conversion or repricing dates.

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Net Portfolio Value

	December 31, 2021							December 31, 2020
Change in Rates	Dollar Amount		Dollar Change		Percent Change			Dollar Amount		Dollar Change		Percent Change
+200bp	$	531,385	$	44,276		9	%	$	515,754	$	44,930		10	%
+100bp		521,707		34,598		7	%		503,010		32,186		7	%
Base		487,109		—		—			470,824		—		—
-100bp		495,963		8,854		2	%		501,686		30,862		7	%
-200bp		548,326		61,217		13	%		527,360		56,536		12	%

The change in net portfolio value from December 31, 2020 to December 31, 2021, can be attributed to a couple of factors. The yield curve has shifted up and steepened on the short end since the end of 2020, and both the volume and mix of assets and funding sources has changed. The volume of loans has decreased and the mix has shifted toward cash and investment securities. The decrease in loans is the result of PPP loan forgiveness. Cash increased because of the increase in deposits. Some of our excess liquidity has been redeployed into our investment portfolio. The volume and mix of liabilities have shifted toward non-maturing deposits and away from certificates of deposit and other borrowings. Deposits increased as a result of business and public fund account increases. The mix shifts from the end of the year, particularly to deposits, led to a decrease in the base net portfolio value. Beyond the change in the base level of net portfolio value, projected movements in rates, up or down, would also lead to changes in market values. The change in the rates up scenarios for both the 100 and 200 basis point movements would lead to a larger decrease in the market value of liabilities than assets. Accordingly, we would see an increase in the net portfolio value. For 100 and 200 basis point downward changes in rates, the market value of assets would increase faster than the market value of liabilities, leading to an increase in the net portfolio value.

Critical Accounting Policies

Allowance for Loan Losses: The allowance for loan losses is regularly reviewed by management to determine that the amount is considered adequate to absorb probable losses in the loan portfolio. If not, an additional provision is made to increase the allowance. This evaluation includes specific loss estimates on certain individually reviewed impaired loans, the pooling of commercial credits risk graded as special mention and substandard that are not individually analyzed, and general loss estimates that are based upon the size, quality, and concentration characteristics of the various loan portfolios, adverse situations that may affect a borrower’s ability to repay, and current economic and industry conditions, among other items.

Those judgments and assumptions that are most critical to the application of this accounting policy are assessing the initial and on-going credit-worthiness of the borrower, the amount and timing of future cash flows of the borrower that are available for repayment of the loan, the sufficiency of underlying collateral, the enforceability of third-party guarantees, the frequency and subjectivity of loan reviews and risk ratings, emerging or changing trends that might not be fully captured in the historical loss experience, and charges against the allowance for actual losses that are greater than previously estimated. These judgments and assumptions are dependent upon or can be influenced by a variety of factors, including the breadth and depth of experience of lending officers, credit administration and the corporate loan review staff that periodically review the status of the loan, changing economic and industry conditions, changes in the financial condition of the borrower and changes in the value and availability of the underlying collateral and guarantees.

Note 1 and Note 4 to the Consolidated Financial Statements provide additional information regarding the Allowance for Loan Losses.

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Goodwill: The Company accounts for business combinations using the acquisition method of accounting. Accordingly, the identifiable assets acquired and the liabilities assumed are recorded at their estimated fair values as of the date of acquisition with any excess of the cost of the acquisition over the fair value recorded as goodwill. The Company performs an evaluation of goodwill for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The evaluation for impairment involves comparing the current estimated fair value of the Company to its carrying value. If the current estimated fair value exceeds the carrying value, no additional testing is required and an impairment loss is not recorded. If the estimated fair value is less than the carrying value, further valuation procedures are performed that could result in impairment of goodwill being recorded. Management estimated the fair value of the Reporting Unit as of the measurement date utilizing four valuation approaches: the comparable transactions approach, the control premium approach, the public market peers control premium approach and the discounted cash flow approach. These approaches were all considered in reaching a conclusion on fair value. The estimated fair value of the Reporting Unit was then compared to the current carrying value to determine if impairment had occurred. It is our opinion that, as of the November 30, 2021 measurement date, the aggregate fair value of the Reporting Unit exceeds the carrying value of the Reporting Unit. Therefore management concluded that goodwill was not impaired and made no adjustment in 2021.

Income Taxes: Management’s determination of the realization of net deferred tax assets is based upon management’s judgment of various future events and uncertainties, including the timing and amount of future income, as well as the implementation of various tax planning strategies to maximize realization of the deferred tax assets. A valuation allowance is provided when it is more likely than not that some portion of the deferred tax asset will not be realized.

Management analyzes material tax positions taken in any income tax return for any tax jurisdiction and determines the likelihood of the positions being sustained in a tax examination. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded.

Other-Than-Temporary Impairment of Investment Securities: The Company performs a quarterly valuation to determine if a decline in the value of an investment security is other than temporary. Although the term “other than temporary” is not intended to indicate that the decline is permanent, it does indicate that the prospects for a near-term recovery of value are not necessarily favorable, or that there is lack of evidence to support fair values equal to or greater than the carrying value of the investment. Once a decline in value is determined to be other than temporary, the value of the security is reduced and a corresponding charge to earnings is recognized. Management utilizes criteria such as the magnitude and duration of the decline, in addition to the reasons underlying the decline, to determine whether the loss in value is other than temporary.

Pension Benefits: Pension costs and liabilities are dependent on assumptions used in calculating such amounts. These assumptions include discount rates, benefits earned, interest costs, expected return on plan assets, mortality rates, and other factors. In accordance with GAAP, actual results that differ from the assumptions are accumulated and amortized over future periods and, therefore, generally affect recognized expense and the recorded obligation of future periods. While management believes that the assumptions used are appropriate, differences in actual experience or changes in assumptions may affect the Company’s pension obligations and future expense. Our pension benefits are described further in Note 14 of the “Notes to Consolidated Financial Statements.”

Derivative Financial Instruments: In the ordinary course of business, the Company enters into derivative financial instruments in connection with its asset/liability management activities and to accommodate the needs of its customers. Derivative financial instruments are stated at fair value on the Consolidated Statement of Conditions with changes in fair value reposted in current earnings.

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23

Management’s Report on Internal Control over Financial Reporting

We, as management of Civista Bancshares, Inc., are responsible for establishing and maintaining effective internal control over financial reporting that is designed to produce reliable financial statements in conformity with United States generally accepted accounting principles. The system of internal control over financial reporting as it relates to the financial statements is evaluated for effectiveness by management and tested for reliability through a program of internal audits. Actions are taken to correct potential deficiencies as they are identified. Any system of internal control, no matter how well designed, has inherent limitations, including the possibility that a control can be circumvented or overridden and misstatements due to error or fraud may occur and not be detected. Also, because of changes in conditions, internal control effectiveness may vary over time. Accordingly, even an effective system of internal control will provide only reasonable assurance with respect to financial statement preparation.

Management assessed the Company’s system of internal control over financial reporting as of December 31, 2021, in relation to criteria for effective internal control over financial reporting as described in “2013 Internal Control – Integrated Framework,” issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, management concludes that, as of December 31, 2021, its system of internal control over financial reporting is effective and meets the criteria of the “2013 Internal Control – Integrated Framework”. BKD, LLP, independent registered public accounting firm, has issued an audit report on the effectiveness of the Company’s internal control over financial reporting as of December 31, 2021.

Management is responsible for compliance with the federal and state laws and regulations concerning dividend restrictions and federal laws and regulations concerning loans to insiders designated by the FDIC as safety and soundness laws and regulations. Management has assessed compliance by the Company with the designated laws and regulations relating to safety and soundness. Based on the assessment, management believes that the Company complied, in all significant respects, with the designated laws and regulations related to safety and soundness for the year ended December 31, 2021.

Dennis G. Shaffer	Todd A. Michel
President and Chief Executive Officer	Senior Vice President, Controller
Sandusky, Ohio
March 15, 2022

24

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders, Board of Directors and Audit Committee

Civista Bancshares, Inc.

Sandusky, Ohio

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheet of Civista Bancshares, Inc. (the “Company”) as of December 31, 2021, the related consolidated statements of operations, comprehensive income, changes in shareholders’ equity and cash flows for the year then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2021, and the results of its operations and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company’s internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control – Integrated Framework (2013 edition) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and our report dated March 15, 2022, expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audit.

We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Allowance for Loan Losses

As described in Notes 1 and 4 to the consolidated financial statements, the Company’s consolidated allowance for loan losses (ALL) was $26.6 million at December 31, 2021. The Company describes in Note 1 of the

25

consolidated financial statements the “Allowance for Loan Losses” accounting policy around this estimate. The ALL is an estimate of losses inherent in the loan portfolio. The determination of the reserve requires significant judgment reflecting the Company’s best estimate of probable loan losses.

The allowance for loan losses is established through a provision for loan losses charged to expense. Loans are charged against the allowance for loan losses when management believes that the collectability of the principal is unlikely. Subsequent recoveries, if any, are credited to the allowance.

Current methodology used by management to estimate the allowance for loan losses takes into consideration such factors as changes in the nature and volume of the loan portfolio, overall portfolio quality, review of specific problem loans, historic categorical trends, current delinquency levels as related to historical levels, portfolio growth rates, changes in composition of the portfolio, the current economic environment, as well as current allowance adequacy in relation to the portfolio. The Company considers all of these factors prior to making any adjustments to the allowance due to the subjectivity and imprecision involved in allocation methodology. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.

The primary reason for our determination that the allowance for loan losses is a critical audit matter is that auditing the estimated allowance for loan losses involved significant judgment and complex review. There is a high degree of subjectivity in evaluating management’s estimate, such as evaluating management’s assessment of economic conditions and other environmental factors on the loan portfolio, evaluating the adequacy of specific allowances associated with impaired loans and assessing the appropriateness of loan grades.

Our audit procedures related to the estimated allowance for loan losses included:

• Evaluated and tested the design and operating effectiveness of related controls over the reliability and accuracy of data used to calculate and estimate various components of the ALL including:

○ Classification of loans by segment

○ Historical loss data and loss rates

○ Establishment of qualitative adjustments

○ Grading and risk classification

○ Establishment of specific reserves on impaired loans

• Testing the clerical and computational accuracy of the formulas and information utilized within the ALL model.

• Evaluating the qualitative and environmental adjustment to the historical loss rates, including assessing the basis for the adjustments and the reasonableness of the significant assumptions.

• Evaluating the relevance and reliability of data and assumptions.

• Testing of the loan review function and the accuracy of how loan grades are determined. Specifically, evaluating the appropriateness of loan grades and to assess the reasonableness of specific impairments on loans.

• Evaluating the overall reasonableness of qualitative factors and the appropriateness of their direction and magnitude and the Company’s support for the direction and magnitude compared to previous years.

• Evaluating credit quality indicators such as trends in delinquencies, nonaccruals, and charge-offs.

• Evaluating the accuracy and completeness of disclosures in the consolidated financial statements.

We have served as the Company’s auditor since 2021.

Cincinnati, Ohio

March 15, 2022

26

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders, Board of Directors and Audit Committee

Civista Bancshares, Inc.

Sandusky, Ohio

Opinion on the Internal Control over Financial Reporting

We have audited Civista Bancshares, Inc.’s (the “Company”) internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control – Integrated Framework: (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control – Integrated Framework: (2013) issued by COSO.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated financial statements of the Company and our report dated March 15, 2022, expressed an unqualified opinion thereon.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.

We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definitions and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

Cincinnati, Ohio

March 15, 2022

27

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and the Board of Directors of Civista Bancshares, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Civista Bancshares, Inc. and subsidiaries (the “Company”) as of December 31, 2020; the related consolidated statements of operations, comprehensive income, changes in shareholders’ equity, and cash flows for each of the two years in the period ended December 31, 2020; and the related notes to the consolidated financial statements (collectively, the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2020, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2020, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent, with respect to the Company, in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

We served as the Company’s auditor from 2009 to 2020.

Cranberry Township, Pennsylvania

March 15, 2022

28

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29

CIVISTA BANCSHARES, INC.

CONSOLIDATED BALANCE SHEETS

December 31, 2021 and 2020

(Amounts in thousands, except share data)

	2021			2020
ASSETS
Cash and due from financial institutions	$	253,459		$	125,749
Restricted cash		10,780			11,300
Cash and cash equivalents		264,239			137,049
Investments in time deposits		1,730			2,473
Securities available for sale		559,874			363,464
Equity securities		1,072			886
Loans held for sale		1,972			7,001
Loans, net of allowance of $26,641 and $25,028		1,971,238			2,032,474
Other securities		17,011			20,537
Premises and equipment, net		22,445			22,580
Accrued interest receivable		7,385			9,421
Goodwill		76,851			76,851
Other intangible assets		7,581			8,075
Bank owned life insurance		46,641			45,976
Swap assets		11,072			21,700
Other assets		22,872			20,375
Total assets	$	3,011,983		$	2,768,862
LIABILITIES
Deposits
Noninterest-bearing	$	788,906		$	720,809
Interest-bearing		1,627,795			1,468,589
Total deposits		2,416,701			2,189,398
Long-term Federal Home Loan Bank advances		75,000			125,000
Securities sold under agreements to repurchase		25,495			28,914
Subordinated debentures		102,813			29,427
Swap liabilities		11,072			21,764
Accrued expenses and other liabilities		25,690			24,251
Total liabilities		2,656,771			2,418,754
SHAREHOLDERS’ EQUITY
Common stock, no par value, 40,000,000 shares authorized, 17,709,584 shares issued at December 31, 2021 and 17,664,951 shares issued at December 31, 2020		277,741			277,039
Accumulated earnings		125,558			93,048
Treasury stock, 2,755,384 common shares at December 31, 2021 and 1,766,919 common shares at December 31, 2020, at cost		(56,907	)		(34,598	)
Accumulated other comprehensive income		8,820			14,619
Total shareholders’ equity		355,212			350,108
Total liabilities and shareholders’ equity	$	3,011,983		$	2,768,862

See accompanying notes to consolidated financial statements

30

CIVISTA BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

Years ended December 31, 2021, 2020 and 2019

(Amounts in thousands, except per share data)

	2021		2020			2019
Interest and dividend income
Loans, including fees	$	89,570	$	87,777		$	84,972
Taxable securities		5,473		5,359			6,584
Tax-exempt securities		6,250		6,123			5,647
Federal funds sold and other		449		606			851
Total interest and dividend income		101,742		99,865			98,054
Interest expense
Deposits		4,175		6,881			8,057
Federal Home Loan Bank advances		1,163		1,932			3,452
Subordinated debentures		955		945			1,423
Securities sold under agreements to repurchase and other		24		380			22
Total interest expense		6,317		10,138			12,954
Net interest income		95,425		89,727			85,100
Provision for loan losses		830		10,112			1,035
Net interest income after provision for loan losses		94,595		79,615			84,065
Noninterest income
Service charges		5,905		5,288			6,395
Net gain on sale of securities		1,786		94			32
Net gain (loss) on equity securities		186		(57	)		121
Net gain on sale of loans		8,042		8,563			2,707
ATM/Interchange fees		5,443		4,472			4,056
Wealth management fees		4,857		3,981			3,670
Bank owned life insurance		1,200		977			1,007
Tax refund processing fees		2,375		2,375			2,750
Computer center item processing fees		175		252			273
Swap fees		207		1,459			516
Other		1,276		778			916
Total noninterest income		31,452		28,182			22,443
Noninterest expense
Compensation expense		44,690		42,480			39,156
Net occupancy expense		4,213		4,079			3,835
Equipment expense		1,838		2,006			2,246
Contracted data processing		1,725		1,880			1,831
FDIC Assessment		1,056		728			138
State franchise tax		2,184		1,913			1,843
Professional services		2,715		2,795			2,844
Amortization of intangible assets		890		913			945
ATM/Interchange expense		2,314		1,868			1,887
Marketing expense		1,103		1,074			1,411
Software maintenance expenses		2,755		1,833			1,523
Other operating expenses		13,001		9,096			9,288
Total noninterest expense		78,484		70,665			66,947
Income before income taxes		47,563		37,132			39,561
Income taxes		7,017		4,940			5,683
Net income		40,546		32,192			33,878
Preferred stock dividends		—		—			647
Net income available to common shareholders	$	40,546	$	32,192		$	33,231
Earnings per common share, basic	$	2.63	$	2.00		$	2.12
Earnings per common share, diluted	$	2.63	$	2.00		$	2.01

See accompanying notes to consolidated financial statements

31

CIVISTA BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Years ended December 31, 2021, 2020 and 2019

(Amounts in thousands)

	2021			2020			2019
Net income	$	40,546		$	32,192		$	33,878
Other comprehensive income (loss):
Unrealized holding gains (loss) on available for sale securities		(8,570	)		10,935			13,368
Tax effect		1,799			(2,297	)		(2,807	)
Reclassification of gains recognized in net income		(1	)		(94	)		(32	)
Tax effect		—			20			7
Pension liability adjustment		992			(1,326	)		(2,953	)
Tax effect		(209	)		279			620
Reclassification of actuatial gain (loss) recognized in net income		240			289			156
Tax effect		(50	)		(61	)		(33	)
Total other comprehensive income (loss)		(5,799	)		7,745			8,326
Comprehensive income	$	34,747		$	39,937		$	42,204

See accompanying notes to consolidated financial statements

32

CIVISTA BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

Years ended December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

	Preferred Shares						Common Shares					Accumulated Earnings			Treasury Stock			Accumulated Other Comprehensive Income (Loss)			Total Shareholders’ Equity
	Shares			Amount			Shares			Amount
Balance, December 31, 2018		10,120		$	9,364			15,603,499		$	266,901	$	41,320		$	(17,235	)	$	(1,452	)	$	298,898
Net income													33,878									33,878
Other comprehensive income																			8,326			8,326
Conversion of Series B preferred shares to common shares		(10,120	)		(9,364	)		1,242,683			8,990		(30	)								(404	)
Stock-based compensation								29,560			531											531
Common share dividends ($0.42 per share)													(6,547	)								(6,547	)
Preferred share dividends ($65.00 per share)													(647	)								(647	)
Repurchase of common stock								(188,200	)							(3,909	)					(3,909	)
Balance, December 31, 2019		—		$	—			16,687,542		$	276,422	$	67,974		$	(21,144	)	$	6,874		$	330,126
Net income													32,192									32,192
Other comprehensive loss																			7,745			7,745
Stock-based compensation								41,245			617											617
Common share dividends ($0.44 per share)													(7,118	)								(7,118	)
Repurchase of common stock								(830,755	)							(13,454	)					(13,454	)
Balance, December 31, 2020		—		$	—			15,898,032		$	277,039	$	93,048		$	(34,598	)	$	14,619		$	350,108
Net income													40,546									40,546
Other comprehensive income																			(5,799	)		(5,799	)
Stock-based compensation								44,633			702											702
Common share dividends ($0.52 per share)													(8,036	)								(8,036	)
Repurchase of common stock								(988,465	)		—					(22,309	)					(22,309	)
Balance, December 31, 2021		—		$	—			14,954,200		$	277,741	$	125,558		$	(56,907	)	$	8,820		$	355,212

See accompanying notes to consolidated financial statements

33

CIVISTA BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

Years ended December 31, 2021, 2020 and 2019

(Amounts in thousands)

	2021			2020			2019
Cash flows from operating activities:
Net income	$	40,546		$	32,192		$	33,878
Adjustments to reconcile net income to net cash from operating activities
Time deposits amortization		8			2			—
Security amortization, net		1,376			1,119			1,185
Depreciation		1,976			2,253			2,240
Amortization of core deposit intangible		890			913			945
Amortization of net deferred loan fees		(10,738	)		(5,066	)		(626	)
Net gain on sale of securities		(1,786	)		(94	)		(32	)
Net (gain) loss on equity securities		(186	)		57			(121	)
Provision for loan losses		830			10,112			1,035
Loans originated for sale		(255,265	)		(308,742	)		(126,690	)
Proceeds from sale of loans		268,336			312,589			128,503
Net gain on sale of loans		(8,042	)		(8,563	)		(2,707	)
Increase in cash surrender value of bank owned life insurance		(1,200	)		(977	)		(1,007	)
Share-based compensation		702			617			531
Deferred taxes		1,319			(2,277	)		663
Change in:
Accrued interest payable		111			(73	)		47
Accrued interest receivable		2,036			(2,328	)		(370	)
Other, net		(152	)		920			1,327
Net cash from operating activities		40,761			32,654			38,801
Cash flows used for investing activities:
Investments in time securities
Maturities		980			735			—
Purchases		(245	)		(1,250	)		(980	)
Securities available for sale
Maturities, prepayments and calls		61,927			58,246			54,055
Sales		1,810			1,455			17,570
Purchases		(268,309	)		(54,850	)		(71,646	)
Purchases of other securities		—			(257	)		—
Redemption of other securities		3,526			—			741
Redemption of equity securities		—			247			—
Purchases of bank owned life insurance		—			—			(955	)
Proceeds from bank owned life insurance		535			—			—
Net change in loans		71,072			(343,348	)		(146,350	)
Proceeds from sale of OREO properties		122			—			—
Premises and equipment purchases		(1,927	)		(1,972	)		(3,201	)
Disposal of premises and equipment		13			12			2
Net cash used for investing activities		(130,496	)		(340,982	)		(150,764	)

See accompanying notes to consolidated financial statements

34

CIVISTA BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

Years ended December 31, 2021, 2020 and 2019

(Amounts in thousands)

	2021			2020			2019
Cash flows from financing activities:
Increase in deposits		227,303			510,634			98,871
Net change in short-term FHLB advances		—			(101,500	)		(87,100	)
Repayment of long-term FHLB advances		(50,000	)		—			(5,000	)
Proceeds from long-term FHLB advances		—			—			125,000
Repayment of other borrowings		—			(183,695	)		—
Proceeds from other borrowings		—			183,695			—
Proceeds from subordinated debentures		73,386			—			—
Increase (decrease) in securities sold under repurchase agreements		(3,419	)		10,240			(3,525	)
Cash payment for redemption of series B preferred stock		—			—			(402	)
Repurchase of common stock		(22,309	)		(13,454	)		(3,909	)
Cash paid on fractional shares on preferred stock conversion		—			—			(2	)
Cash dividends paid		(8,036	)		(7,118	)		(7,194	)
Net cash from financing activities		216,925			398,802			116,739
Increase in cash and due from financial institutions		127,190			90,474			4,776
Cash and cash equivalents at beginning of year		137,049			46,575			41,799
Cash and cash equivalents at end of year	$	264,239		$	137,049		$	46,575
Supplemental disclosures of cash flow information:
Interest paid	$	6,206		$	10,211		$	12,907
Income taxes paid		6,180			7,095			5,700
Transfer of loans from portfolio to other real estate owned		72			31			—
Transfer of premises to held-for-sale		—			—			76
Securities purchased not settled		3,524			—			1,200
Conversion of preferred stock to common stock		—			—			8,960

See accompanying notes to consolidated financial statements

35

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of the accounting policies adopted by Civista Bancshares, Inc., which have a significant effect on the Consolidated Financial Statements.

Nature of Operations and Principles of Consolidation: The Consolidated Financial Statements include the accounts of Civista Bancshares, Inc. (“CBI”) and its wholly-owned direct and indirect subsidiaries: Civista Bank (“Civista”), First Citizens Insurance Agency, Inc. (“FCIA”), Water Street Properties, Inc. (“WSP”), FC Refund Solutions, Inc. (“FCRS”), CIVB Risk Management, Inc. (“CRMI”), First Citizens Capital LLC (“FCC”) and First Citizens Investments, Inc. (“FCI”). The above companies together are sometimes referred to as the “Company”. Intercompany balances and transactions are eliminated in consolidation.

Civista provides financial services through its offices in the Ohio counties of Erie, Crawford, Champaign, Cuyahoga, Franklin, Logan, Summit, Huron, Ottawa, Madison, Montgomery and Richland, in the Indiana counties of Dearborn and Ripley and in the Kentucky county of Kenton. Its primary deposit products are checking, savings, and term certificate accounts, and its primary lending products are residential mortgage, commercial, and installment loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets and commercial and residential real estate. Commercial loans are expected to be repaid from cash flow from operations of businesses. There are no significant concentrations of loans to any one industry or customer. However, our customers’ ability to repay their loans is dependent on the real estate and general economic conditions in the area. Other financial instruments that potentially represent concentrations of credit risk include deposit accounts in other financial institutions.

FCIA was formed to allow the Company to participate in commission revenue generated through its third party insurance agreement. Insurance commission revenue was less than 1.0% of total revenue for each of the years ended December 31, 2021, 2020 and 2019. WSP was formed to hold repossessed assets of CBI’s subsidiaries. WSP revenue was less than 1% of total revenue for each of the years ended December 31, 2021, 2020 and 2019. FCRS was formed in 2012 to facilitate payment of individual state and federal tax refunds. The operations of FCRS were discontinued June 30, 2019. CRMI was formed in 2017 to provide property and casualty insurance coverage to CBI and its subsidiaries for which insurance may not be currently available or economically feasible in the insurance marketplace. CRMI revenue was less than 1% of total revenue for each of the years ended December 31, 2021, 2020 and 2019. FCC was formed as a wholly-owned subsidiary of Civista in Wilmington, Delaware to hold inter-company debt. The operations of FCC were discontinued December 31, 2021. FCI is wholly-owned by Civista and holds and manages its securities portfolio. The operations of FCI are located in Wilmington, Delaware.

Use of Estimates: To prepare financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and future results could differ. The allowance for loan losses, determination of goodwill impairment, fair values of financial instruments, valuation of deferred tax assets, pension obligations and other-than-temporary-impairment of securities are considered material estimates that are particularly susceptible to significant change in the near term.

Cash Flows: Cash and cash equivalents include cash on hand and demand deposits with financial institutions with original maturities of less than 90 days. Net cash flows are reported for customer loan and deposit

36

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

transactions, interest bearing deposits in other financial institutions, federal funds purchased, short-term borrowings and repurchase agreements. The Company routinely maintains balances that exceed FDIC insured limits and the risk of loss is very low with respect to such deposits.

Securities: Debt securities are classified as available for sale when they might be sold before maturity. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax.

Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage backed securities where prepayments are anticipated. Gains and losses on sales are based on the amortized cost of the security sold using the specific identification method.

Securities are evaluated on at least a quarterly basis and more frequently when economic or market conditions warrant such an evaluation to determine whether a decline in their value is other than temporary. For debt securities, management considers whether the present value of cash flows expected to be collected are less than the security’s amortized cost basis, the magnitude and duration of the decline, the reasons underlying the decline and the Company’s intent to sell the security or whether it is more likely than not that the Company would be required to sell the security before its anticipated recovery in market value, to determine whether the loss in value is other than temporary. Once a decline in value is determined to be other than temporary, if the Company does not intend to sell the security, and it is more likely than not that it will not be required to sell the security, before recovery of the security’s amortized cost basis, the charge to earnings is limited to the amount of credit loss. Any remaining difference between fair value and amortized cost is recognized in other comprehensive income, net of applicable taxes. Otherwise, the entire difference between fair value and amortized cost is charged to earnings.

Other securities which include FHLB stock, Federal Reserve Bank (“FRB”) stock, Federal Agricultural Mortgage Corporation stock, Bankers’ Bancshares Inc. (“BB”) stock, and Norwalk Community Development Corp (“NCDC”) stock are carried at cost.

Equity securities: Equity securities are held at fair value. Holding gains and losses are recorded in noninterest income. Dividends are recognized as income when earned.

Loans Held for Sale: Mortgage loans originated and intended for sale in the secondary market and loans that management no longer intends to hold for the foreseeable future, are carried at the lower of aggregate cost or fair value, as determined by outstanding commitments from investors. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings.

Loans: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of deferred loan fees and costs, and an allowance for loan losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments.

Interest income on mortgage and commercial loans is discontinued at the time the loan is 90 days delinquent unless the credit is well-secured and in process of collection. Interest income on consumer loans is discontinued

37

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

when management determines future collection is unlikely. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful.

All interest accrued, but not received, for loans placed on nonaccrual, is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Purchased Loans: The Company purchases individual loans and groups of loans. Purchased loans that show evidence of credit deterioration since origination are recorded at the amount paid (or allocated fair value in a purchase business combination), such that there is no carryover of the seller’s allowance for loan losses. After acquisition, incurred losses are recognized by an increase in the allowance for loan losses.

Purchased loans are accounted for individually or aggregated into pools of loans based on common risk characteristics (e.g., credit score, loan type, and date of origination). The Company estimates the amount and timing of expected cash flows for each purchased loan or pool, and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loan’s, or pool’s, contractual principal and interest over expected cash flows is not recorded (nonaccretable difference).

Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded. If the present value of expected future cash flows is greater than the carrying amount, the excess is recognized as part of future interest income.

Allowance for Loan Losses: The allowance for loan losses (allowance) is calculated with the objective of maintaining a reserve sufficient to absorb inherent loan losses in the loan portfolio. Management establishes the allowance for loan losses based upon its evaluation of the pertinent factors underlying the types and quality of loans in the portfolio. In determining the allowance and the related provision for loan losses, the Company considers three principal elements: (i) specific impairment reserve allocations (valuation allowances) based upon probable losses identified during the review of impaired loans in the Commercial loan portfolio, (ii) allocations established for adversely-rated loans in the Commercial loan portfolio and nonaccrual Real Estate Residential, Consumer installment and Home Equity loans, and (iii) allocations on all other loans based principally on the use of a three-year period for loss migration analysis. These allocations are adjusted for consideration of general economic and business conditions, credit quality and delinquency trends, collateral values, and recent loss experience for these similar pools of loans. The Company analyzes its loan portfolio each quarter to determine the appropriateness of its allowance for loan losses.

All Commercial, Commercial Real Estate and Farm Real Estate loans are monitored on a regular basis with a detailed loan review completed for all loan relationships greater than $1,500. All Commercial, Commercial Real Estate and Farm Real Estate loans that are 90 days past due or in nonaccrual status, are analyzed to determine if they are “impaired”, which means that it is probable that all amounts will not be collected according to the contractual terms of the loan agreement. All loans that are delinquent 90 days are classified as substandard and placed on nonaccrual status unless they are well-secured and in the process of collection. The remaining loans are

38

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

evaluated and segmented with loans with similar risk characteristics. The Company allocates reserves based on risk categories and portfolio segments described below, which conform to the Company’s asset classification policy. In reviewing risk within Civista’s loan portfolio, management has identified specific segments to categorize loan portfolio risk: (i) Commercial & Agriculture loans; (ii) Commercial Real Estate – Owner Occupied loans; (iii) Commercial Real Estate – Non-Owner Occupied loans; (iv) Residential Real Estate loans; (v) Real Estate Construction loans; (vi) Farm Real Estate loans; and (vii) Consumer and Other loans. Additional information related to economic factors can be found in Note 4.

Loan Charge-off Policies: All unsecured open- and closed-ended retail loans that become past due 90 days from the contractual due date are charged off in full. In lieu of charging off the entire loan balance, loans with non-real estate collateral may be written down to the net realizable value of the collateral, if repossession of collateral is assured and in process. For open- and closed-ended loans secured by residential real estate, a current assessment of fair value is made no later than 180 days past due. Any outstanding loan balance in excess of the net realizable value of the property is charged off. All other loans are generally charged down to the net realizable value when Civista recognizes the loan is permanently impaired, which is generally after the loan is 90 days past due.

Troubled Debt Restructurings: In certain situations based on economic or legal reasons related to a borrower’s financial difficulties, management may grant a concession for other than an insignificant period of time to the borrower that would not otherwise be considered. The related loan is classified as a troubled debt restructuring (TDR). Management strives to identify borrowers in financial difficulty early and work with them to modify to more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal, management measures any impairment on the restructuring as noted above for impaired loans. In addition to the allowance for the pooled portfolios, management has developed a separate reserve for loans that are identified as impaired through a TDR. These loans are excluded from pooled loss forecasts and a separate reserve is provided under the accounting guidance for loan impairment. Consumer loans whose terms have been modified in a TDR are also individually analyzed for estimated impairment.

Other Real Estate: Other real estate acquired through or instead of loan foreclosure is initially recorded at fair value less costs to sell when acquired, establishing a new cost basis and any deficiency in the value is charged off through the allowance. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Operating costs after acquisition are expensed.

Premises and Equipment: Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed using both accelerated and straight-line methods over the estimated useful life of the asset, ranging from three to seven years for furniture and equipment and seven to fifty years for buildings and improvements.

Federal Home Loan Bank (FHLB) Stock: Civista is a member of the FHLB of Cincinnati and as such, is required to maintain a minimum investment in stock of the FHLB that varies with the level of advances outstanding with the FHLB. The stock is bought from and sold to the FHLB based upon its $100 par value. The stock does not have a readily determinable fair value and as such is classified as restricted stock, carried at cost and evaluated for impairment by management. The stock’s value is determined by the ultimate recoverability of the par value

39

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

rather than by recognizing temporary declines. The determination of whether the par value will ultimately be recovered is influenced by criteria such as the following: (a) the significance of the decline in net assets of the FHLB as compared to the capital stock amount and the length of time this situation has persisted, (b) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance, (c) the impact of legislative and regulatory changes on the customer base of the FHLB, and (d) the liquidity position of the FHLB. With consideration given to these factors, management concluded that the FHLB stock was not impaired at December 31, 2021 or 2020. FHLB Stock is included in Other Securities on the Consolidated Balance Sheet.

Federal Reserve Bank (FRB) Stock: Civista is a member of the Federal Reserve System. FRB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. FRB Stock is included in Other Securities on the Consolidated Balance Sheet.

Bank Owned Life Insurance (BOLI): Civista has purchased BOLI policies on certain key executives. BOLI is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Changes in the cash surrender value are recorded as income in the period that the change occurs.

Goodwill and Other Intangible Assets: Goodwill results from business acquisitions and represents the excess of the purchase price over the fair value of acquired tangible assets and liabilities and identifiable intangible assets. Goodwill is assessed at least annually for impairment and any such impairment will be recognized in the period identified.

Other intangible assets consist of core deposit intangibles arising from whole bank and branch acquisitions. These intangible assets are measured at fair value and then amortized on an accelerated method over their estimated useful lives, which range from five to twelve years.

Mortgage Servicing Rights: Mortgage servicing rights are recognized as assets for the allocated value of retained mortgage servicing rights on loans sold. Mortgage servicing rights are initially recorded at fair value at the date of transfer. The valuation technique uses the present value of estimated future cash flows using current market discount rates. Mortgage servicing rights are amortized in proportion to, and over the period of, estimated net servicing revenues. Impairment is evaluated based on the fair value of the rights, using groupings of the underlying loans as to interest rates and then, secondarily, prepayment characteristics. Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Any impairment of a grouping is reported as a valuation allowance to the extent that fair value is less than the capitalized asset for the grouping.

Long-lived Assets: Premises and equipment and other intangible assets, and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value.

Repurchase Agreements: Substantially all repurchase agreement liabilities represent amounts advanced by various customers. Securities are pledged to cover these liabilities, which are not covered by federal deposit insurance.

40

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Loan Commitments and Related Financial Instruments: Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay.

Income Taxes: Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax basis of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized.

The Company prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Benefits from tax positions should be recognized in the financial statements only when it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information.

A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The Company recognizes interest and/or penalties related to income tax matters in income tax expense.

Stock-Based Compensation: Compensation cost is recognized for stock options and restricted stock awards issued to employees and directors, based on the fair value of these awards at the grant date. The market price of the Company’s common shares at the date of the grant is used for restricted shares.

Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award.

Retirement Plans: Pension expense is the net of service and interest cost, expected return on plan assets and amortization of gains and losses not immediately recognized. Employee 401(k) and profit sharing plan expense consist of the amount of matching contributions. Deferred compensation allocates the benefits over the years of service.

Earnings per Common Share: Earnings per share is computed using the two-class method. Basic earnings per share are net income available to common shareholders divided by the weighted average number of common shares outstanding during the period, which excludes participating securities. Diluted earnings per common share include the dilutive effect of additional potential common shares issuable related to convertible preferred shares. Treasury shares are not deemed outstanding for earnings per share calculations.

Comprehensive Income: Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available for sale and changes in the funded status of the pension plan.

41

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Loss Contingencies: Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe that any such loss contingencies currently exist that will have a material effect on the financial statements.

Restrictions on Cash: Cash on hand or on deposit with the Federal Reserve Bank is required to meet regulatory reserve and clearing requirements. These balances do not earn interest. The required reserve amount at December 31, 2021 was $0. The Company had cash pledged as collateral on its interest rate swaps with third party financial institutions of $10,780 at December 31, 2021.

Dividend Restriction: Banking regulations require maintaining certain capital levels and may limit the dividends paid by Civista to CBI or by CBI to shareholders. Additional information related to dividend restrictions can be found in Note 18.

Fair Value of Financial Instruments: Fair values of financial instruments are estimated using relevant market information and other assumptions that reflect exit price value, as more fully disclosed in Note 16. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates.

Operating Segments: While the Company’s chief decision makers monitor the revenue streams of the Company’s various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Operating segments are aggregated into one as operating results for all segments are similar. Accordingly, all of the Company’s financial service operations are considered by management to be aggregated in one reportable operating segment.

Treasury Stock: Shares of CBI common stock that are repurchased are recorded in treasury stock at cost.

Business Combinations: At the date of acquisition the Company records the assets and liabilities of acquired companies on the Consolidated Balance Sheets at their fair value. The results of operations for acquired companies are included in the Company’s Consolidated Statements of Operations beginning at the acquisition date. Expenses arising from acquisition activities are recorded in the Consolidated Statements of Operations during the period incurred.

Derivative Instruments and Hedging Activities: The Company enters into interest rate swap agreements to facilitate the risk management strategies of a small number of commercial banking customers. All derivatives are accounted for in accordance with ASC-815, Derivatives and Hedging. The Company mitigates the risk of entering into these agreements by entering into equal and offsetting swap agreements with highly rated third party financial institutions. The swap agreements are free-standing derivatives and are recorded at fair value in the Company’s Consolidated Balance Sheets. Changes in fair value are recorded as income or expense in the period that they occur. The Company is party to master netting arrangements with its financial institution counterparties. The master netting arrangements provide for a single net settlement of all swap agreements, as well as collateral, in the event of default on, or termination of, any one contract. Collateral, in the form of cash and marketable securities, is posted by the counterparty with net liability positions in accordance with contract thresholds.

42

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Reclassifications: Some items in the prior year financial statements were reclassified to conform to the current presentation. Such reclassifications had no effect on net income or shareholders’ equity.

Adoption of New Accounting Standards:

In October 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-08, Codification Improvements to Subtopic 310-20, Receivables – Nonrefundable Fees and Other Costs, which clarifies that, for each reporting period, an entity should reevaluate whether a callable debt security is within the scope of ASC 310-20-35-33. We adopted ASU 2020-08 effective January 1, 2021, which did not have a material impact on the Company’s Consolidated Financial Statements.

Effect of Newly Issued but Not Yet Effective Accounting Standards:

In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which changes the impairment model for most financial assets. This ASU is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The underlying premise of ASU 2016-13 is that financial assets measured at amortized cost should be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The allowance for credit losses should reflect management’s current estimate of credit losses that are expected to occur over the remaining life of a financial asset. The income statement will be effected for the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted for annual and interim periods beginning after December 15, 2018. On October 16, 2019, the FASB voted to defer the effective date for ASC 326, Financial Instruments – Credit Losses, for smaller reporting companies to fiscal years beginning after December 15, 2022, and interim periods within those fiscal years, which was codified in the final ASU issued by the FASB on November 15, 2019. As a result, because the Company qualified as a smaller reporting company, based on its most recent determination under applicable rules of the Securities and Exchange Commission (“SEC”), as of November 15, 2019, the Company will not be subject to ASU 2016-13 until its annual and interim periods beginning after December 15, 2022. Management is in the process of evaluating the impact adoption of ASU 2016-13 will have on the Company’s Consolidated Financial Statements. This process has engaged multiple areas of the Company in evaluating loss estimation methods and application of these methods to specific segments of the loan portfolio. Management has been actively monitoring FASB developments and evaluating the use of different methods allowed. Due to continuing development of our methodology, additional time is required to quantify the affect this ASU will have on the Company’s Consolidated Financial Statements. Management continues to refine its modeling and is running parallel calculations and will finalize a method or methods of adoption in time for the effective date.

In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment. To simplify the subsequent measurement of goodwill, the FASB eliminated Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities)

43

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. A public business entity that is an SEC filer, such as the Company, should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. On October 16, 2019, the FASB voted to defer the effective date for ASC 350, Intangibles – Goodwill and Other, for smaller reporting companies, such as the Company, to fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The final ASU was issued by the FASB on November 15, 2019. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations.

In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, and Topic 825, Financial Instruments, which affects a variety of topics in the Codification and applies to all reporting entities within the scope of the affected accounting guidance. Topic 326, Financial Instruments – Credit Losses amendments are effective for SEC registrants for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The amendments to Topic 825 are effective for interim and annual reporting periods beginning after December 15, 2019. On October 16, 2019, the FASB voted to defer the effective date for ASC 326, Financial Instruments – Credit Losses, for smaller reporting companies, such as the Company, to fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The final ASU was issued by the FASB on November 15, 2019. The Company is currently evaluating the potential impact of the Topic 326 amendments on the Company’s Consolidated Financial Statements.

In May 2019, the FASB issued ASU 2019-05, Financial Instruments – Credit Losses, Topic 326, which allows entities to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost upon adoption of the new credit losses standard. To be eligible for the transition election, the existing financial asset must otherwise be both within the scope of the new credit losses standard and eligible for the applying the fair value option in ASC 825-10.3. The election must be applied on an instrument-by-instrument basis and is not available for either available for sale or held-to-maturity debt securities. For entities that elect the fair value option, the difference between the carrying amount and the fair value of the financial asset would be recognized through a cumulative-effect adjustment to opening retained earnings as of the date an entity adopted ASU 2016-13. Changes in fair value of that financial asset would subsequently be reported in current earnings. For entities that have not yet adopted ASU 2016-13, the effective dates and transition requirements are the same as those in ASU 2016-13. For entities that have adopted ASU 2016-13, ASU 2019-05 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted once ASU 2016-13 has been adopted. On October 16, 2019, the FASB voted to defer the effective date for ASC 326, Financial Instruments – Credit Losses, for smaller reporting companies, such as the Company, to fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The final ASU was issued by the FASB on November 15, 2019. The Company is currently building its model, documenting model assumptions, preparing to run the current state and future state models parallel and evaluating the impact the adoption of the standard will have on the Company’s financial statements.

44

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

In November 2019, the FASB issued ASU 2019-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842). The Update defers the effective dates of ASU 2016-13 for SEC filers that are eligible to be smaller reporting companies, such as the Company, to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. This Update also amends the mandatory effective date for the elimination of Step 2 from the goodwill impairment test under ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (Goodwill), to align with those used for credit losses. Furthermore, the ASU provides a one-year deferral of the effective dates of the ASUs on derivatives and hedging and leases for companies that are not public business entities. The Company qualified as a smaller reporting company and does not expect to early adopt these ASUs.

In November 2019, the FASB issued ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, to clarify its new credit impairment guidance in ASC 326, based on implementation issues raised by stakeholders. This Update clarified, among other things, that expected recoveries are to be included in the allowance for credit losses for these financial assets; an accounting policy election can be made to adjust the effective interest rate for existing troubled debt restructurings based on the prepayment assumptions instead of the prepayment assumptions applicable immediately prior to the restructuring event; and extends the practical expedient to exclude accrued interest receivable from all additional relevant disclosures involving amortized cost basis. The effective dates in this Update are the same as those applicable for ASU 2019-10. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations.

In March 2020, the FASB issued ASU 2020-03, Codification Improvements to Financial Instruments. This ASU was issued to improve and clarify various financial instruments topics, including the current expected credit losses (CECL) standard issued in 2016. The ASU includes seven issues that describe the areas of improvement and the related amendments to GAAP; they are intended to make the standards easier to understand and apply and to eliminate inconsistencies, and they are narrow in scope and are not expected to significantly change practice for most entities. Among its provisions, the ASU clarifies that all entities, other than public business entities that elected the fair value option, are required to provide certain fair value disclosures under ASC 825, Financial Instruments, in both interim and annual financial statements. It also clarifies that the contractual term of a net investment in a lease under Topic 842 should be the contractual term used to measure expected credit losses under Topic 326. Amendments related to ASU 2019-04 are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is not permitted before an entity’s adoption of ASU 2016-01. Amendments related to ASU 2016-13 for entities that have not yet adopted that guidance are effective upon adoption of the amendments in ASU 2016-13. Early adoption is not permitted before an entity’s adoption of ASU 2016-13. Amendments related to ASU 2016-13 for entities that have adopted that guidance are effective for fiscal years beginning after December 15, 2019, including interim periods within those years. Other amendments are effective upon issuance of this ASU. This Update is not expected to have a significant impact on the Company’s financial statements.

In January 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, March 2020, to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative

45

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

reference rates, such as the Secured Overnight Financing Rate (SOFR). Entities can elect not to apply certain modification accounting requirements to contracts affected by what the guidance calls “reference rate reform” if certain criteria are met. An entity that makes this election would not have to remeasure the contracts at the modification date or reassess a previous accounting determination. Also, entities can elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform if certain criteria are met, and can make a one-time election to sell and/or reclassify held-to-maturity debt securities that reference an interest rate affected by reference rate reform. The amendments in this ASU are effective for all entities upon issuance through December 31, 2022. The Company is working through this transition via a multi-disciplinary project team. We are still evaluating the impact the change to a benchmark like SOFR or Prime Rate will have on our financial condition, results of operations or cash flows.

NOTE 2 - SECURITIES

The amortized cost and fair value of available for sale securities and the related gross unrealized gains and losses recognized were as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
2021
U.S. Treasury securities and obligations of U.S. government agencies	$	48,390	$	30	$	(530	)	$	47,890
Obligations of states and political subdivisions		281,247		17,696		(107	)		298,836
Mortgage-back securities in government sponsored entities		211,660		2,938		(1,450	)		213,148
Total debt securities	$	541,297	$	20,664	$	(2,087	)	$	559,874
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
2020
U.S. Treasury securities and obligations of U.S. government agencies	$	21,479	$	220	$	(6	)	$	21,693
Obligations of states and political subdivisions		208,013		21,000		(1	)		229,012
Mortgage-back securities in government sponsored entities		106,824		5,963		(28	)		112,759
Total debt securities	$	336,316	$	27,183	$	(35	)	$	363,464

46

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 2 - SECURITIES (Continued)

The amortized cost and fair value of securities at year end 2021 by contractual maturity were as follows. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately.

	Available for sale
	Amortized Cost		Fair Value
Due in one year or less	$	3,786	$	3,789
Due from one to five years		32,034		32,121
Due from five to ten years		61,675		63,083
Due after ten years		232,142		247,733
Mortgage-backed securities in government sponsored entities		211,660		213,148
Total securities available for sale	$	541,297	$	559,874

Securities with a carrying value of $168,435 and $159,527 were pledged as of December 31, 2021 and 2020, respectively, to secure public deposits, other deposits and liabilities as required or permitted by law.

Proceeds from sales of securities, gross realized gains and gross realized losses were as follows:

	2021		2020		2019
Sale proceeds	$	1,810	$	1,455	$	17,570
Gross realized gains		1,785		94		47
Gross realized losses		—		—		43
Gains from securities called or settled by the issuer		1		—		28

Debt securities with unrealized losses at year end 2021 and 2020 not recognized in income were as follows:

2021	12 Months or less					More than 12 months					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Treasury securities and obligations of U.S. government agencies	$	41,432	$	(473	)	$	2,014	$	(57	)	$	43,446	$	(530	)
Obligations of states and political subdivisions		25,797		(107	)		—		—			25,797		(107	)
Mortgage-backed securities in gov’t sponsored entities		141,327		(1,343	)		3,123		(107	)		144,450		(1,450	)
Total temporarily impaired	$	208,556	$	(1,923	)	$	5,137	$	(164	)	$	213,693	$	(2,087	)

47

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 2 – SECURITIES (Continued)

2020	12 Months or less					More than 12 months					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Treasury securities and obligations of U.S. government agencies	$	6,501	$	(5	)	$	126	$	(1	)	$	6,627	$	(6	)
Obligations of states and political subdivisions		1,874		(1	)		—		—			1,874		(1	)
Mortgage-backed securities in gov’t sponsored entities		5,755		(28	)		—		—			5,755		(28	)
Total temporarily impaired	$	14,130	$	(34	)	$	126	$	(1	)	$	14,256	$	(35	)

The Company periodically evaluates securities for other-than-temporary impairment. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. Unrealized losses that are determined to be temporary in nature are recorded, net of tax, in accumulated other comprehensive loss on the Consolidated Balance Sheet.

The Company has assessed each available for sale security position for credit impairment. Factors considered in determining whether a loss is temporary include:

• The length of time and the extent to which fair value has been below cost;

• The severity of impairment;

• The cause of the impairment and the financial condition and near-term prospects of the issuer;

• If the Company intends to sell the investment;

• If it’s more-likely-than-not the Company will be required to sell the investment before recovering its amortized cost basis; and

• If the Company does not expect to recover the investment’s entire amortized cost basis (even if the Company does not intend to sell the investment).

The Company’s review for impairment generally entails:

• Identification and evaluation of investments that have indications of impairment;

• Analysis of individual investments that have fair values less than amortized cost, including consideration of length of time each investment has been in unrealized loss position and the expected recovery period;

• Evaluation of factors or triggers that could cause individual investments to qualify as having other-than-temporary impairment; and

• Documentation of these analyses, as required by policy.

At December 31, 2021, the Company owned 50 securities that were considered temporarily impaired. The unrealized losses on these securities have not been recognized into income because the issuers’ bonds are of high credit quality,

48

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 2 – SECURITIES (Continued)

management has the intent and ability to hold these securities for the foreseeable future, and the decline in fair value is largely due to changes in market interest rates. The Company also considers sector specific credit rating changes in its analysis. The fair value is expected to recover as the securities approach their maturity date or reset date. The Company does not intend to sell until recovery and does not believe selling will be required before recovery.

The following table presents the net gains and losses on equity investments recognized in earnings at year-end 2021 and 2020, and the portion of unrealized gains and losses for the period that relates to equity investments held at year-end 2021 and 2020:

	2021		2020
Net gains (losses) recognized on equity securities during the year	$	186	$	(57	)
Less: Net gains realized on the sale of equity securities during the period		—		6
Unrealized gains (losses) recognized in equity securities held at December 31	$	186	$	(51	)

NOTE 3 - LOANS

Loans at year-end were as follows:

	2021			2020
Commercial & Agriculture	$	246,502		$	409,876
Commercial Real Estate - owner occupied		295,452			278,413
Commercial Real Estate - non-owner occupied		829,310			705,072
Residential Real Estate		430,060			442,588
Real Estate Construction		157,127			175,609
Farm Real Estate		28,419			33,102
Consumer and Other		11,009			12,842
Total Loans		1,997,879			2,057,502
Allowance for loan losses		(26,641	)		(25,028	)
Net loans	$	1,971,238		$	2,032,474

Included in Commercial & Agriculture loans as of December 31, 2021 and 2020 is $43,209 and $217,295, respectively, of Paycheck Protection Program (“PPP”) loans.

Included in total loans above are deferred loan fees of $2,924 and $5,998 at December 31, 2021 and 2020, respectively. Included in net deferred loan fees as of December 31, 2021 and 2020 is $1,762 and $5,194, respectively, of net deferred loan fees from PPP loans.

49

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 3 - LOANS (Continued)

Paycheck Protection Program

In response to the novel COVID-19 pandemic, the Coronavirus Aid, Relief, and Economic Security Act of 2020, as amended (the “CARES Act”), was signed into law on March 27, 2020, to provide national emergency economic relief measures. The CARES Act amended the loan program of the Small Business Administration (the “SBA”), in which Civista participates, to create a guaranteed, unsecured loan program, the Paycheck Protection Program (the “PPP”), to fund operational costs of eligible businesses, organizations and self-employed persons during the COVID-19 pandemic. During 2020, Civista processed over 2,300 PPP loans totaling $268.3 million.

The Consolidated Appropriations Act 2021, was signed into law on December 27, 2020 to provide an additional funding of $284.5 billion under the PPP and the establishment of PPP Second Draw Loans under the Economic Aid to Hard-Hit Small Businesses, Nonprofit, and Venues Act (the “Relief Act”). This additional funding was made available from original PPP lenders on January 19, 2021, and the deadline (as extended) for submitting applications for PPP Second Draw Loans was May 31, 2021.

Funds provided under the Relief Act were earmarked both for first time PPP borrowers (subject to original PPP eligibility and limits) as well as ‘Second Draw’ Loans for borrowers that already received an original PPP loan. Additional Second Draw eligibility requirements were as follows: (1) entities must have no more than 300 employees, (2) entities must have suffered a 25% of more reduction in gross revenues between comparable quarters in 2019 and 2020, (3) some entities previously excluded are eligible for this round, such as local TV, newspaper, and radio, and (4) loan size limited to 2.5 times average monthly payroll with a maximum allowable amount of $2 million.

During 2021, Civista received SBA approval on, and funded, 1,340 PPP loans totaling $131,109 under the Relief Act.

Loans to principal officers, directors, and their affiliates at year-end 2021 and 2020 were as follows:

	2021			2020
Balance - Beginning of year	$	8,475		$	9,909
New loans and advances		15,522			1,153
Repayments		(6,693	)		(3,004	)
Effect of changes to related parties		143			417
Balance - End of year	$	17,447		$	8,475

The Company had credit lines to principal officers, directors, and their affiliates with an availability of $6,115 and $6,986 as of December 31, 2021 and 2020, respectively.

NOTE 4 - ALLOWANCE FOR LOAN LOSSES

Management has an established methodology to determine the adequacy of the allowance for loan losses that assesses the risks and losses inherent in the loan portfolio. For purposes of determining the allowance for loan losses, the Company has segmented certain loans in the portfolio by product type. Loans are segmented into the following pools: Commercial and Agriculture loans, Commercial Real Estate – Owner Occupied loans, Commercial Real Estate – Non-owner Occupied loans, Residential Real Estate loans, Real Estate Construction

50

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 4 - ALLOWANCE FOR LOAN LOSSES (Continued)

loans, Farm Real Estate loans and Consumer and Other loans. Loss migration rates for each risk category are calculated and used as the basis for calculating loan loss allowance allocations. Loss migration rates are calculated over a three-year period for all portfolio segments. Management also considers certain economic factors for trends that management uses to account for the qualitative and environmental changes in risk, which affects the level of the reserve. The following economic factors are analyzed:

• Changes in lending policies and procedures

• Changes in experience and depth of lending and management staff

• Changes in quality of credit review system

• Changes in the nature and volume of the loan portfolio

• Changes in past due, classified and nonaccrual loans and TDRs

• Changes in economic and business conditions

• Changes in competition or legal and regulatory requirements

• Changes in concentrations within the loan portfolio

• Changes in the underlying collateral for collateral dependent loans

The total allowance reflects management’s estimate of loan losses inherent in the loan portfolio at the consolidated balance sheet date. The Company considers the allowance for loan losses of $26,641 adequate to cover loan losses inherent in the loan portfolio, at December 31, 2021. The following tables present, by portfolio segment, the changes in the allowance for loan losses, the ending allocation of the allowance for loan losses and the loan balances outstanding for the years ended December 31, 2021, 2020 and 2019. The changes can be impacted by overall loan volume, adversely graded loans, historical charge-offs and economic factors.

51

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 4 - ALLOWANCE FOR LOAN LOSSES (Continued)

Allowance for loan losses:

December 31, 2021	Beginning balance		Charge-offs			Recoveries		Provision (Credit)			Ending Balance
Commercial & Agriculture	$	2,810	$	(15	)	$	165	$	(360	)	$	2,600
Commercial Real Estate:
Owner Occupied		4,057		—			7		400			4,464
Non-Owner Occupied		12,451		—			395		1,014			13,860
Residential Real Estate		2,484		(120	)		302		(69	)		2,597
Real Estate Construction		2,439		—			1		(630	)		1,810
Farm Real Estate		338		—			12		(63	)		287
Consumer and Other		209		(24	)		60		(69	)		176
Unallocated		240		—			—		607			847
Total	$	25,028	$	(159	)	$	942	$	830		$	26,641

For the year ended December 31, 2021, the Company provided $830 to the allowance for loan losses, as compared to a provision of $10,112 for the year ended December 31, 2020. The decrease in the provision was due to the stability of our credit quality metrics coupled with the stabilization and, in some cases, improvement of international, national, regional and local economic conditions that were adversely impacted by the 2020 economic shutdown and restrictions in response to the ongoing COVID-19 pandemic. While vaccinations and booster shots in 2021 have created some level of optimism in the business community, there remains uncertainty due to the continued concern over increased infections from the Delta and Omicron variants of COVID. We remain cautious given the level of classified loans in the portfolio, particularly loans to borrowers in the hotel industry as well as the challenges businesses face in today’s environment. The lingering economic impacts related to the COVID-19 pandemic have included the loss of revenue experienced by our business clients, disruption of supply chains, higher employee wages coupled with workforce shortages and increased costs of materials and services. While some of the pressures have eased, ongoing supply chain and staffing challenges, as well as inflationary pressures remain. Our Commercial and Commercial Real Estate portfolios have been, and are expected to continue to be, impacted the most.

For the year ended December 31, 2021, the allowance for Commercial & Agriculture loans decreased due to a decrease in general reserves required for this type as a result of a decrease in loss rates. Commercial and Agriculture loan balances decreased during the year mainly from Civista’s participation in the PPP loan program. The result was represented as a decrease in the provision. The allowance for Commercial Real Estate – Owner Occupied loans increased due to an increase in general reserves required for this type as a result of increased loan balances, offset by a decrease in classified loans balances. The result was represented as an increase in the provision. The allowance for Commercial Real Estate – Non-Owner Occupied loans increased due to an increase in general reserves required as a result of an increase in loan balances, offset by decreases in classified loan balances and loss rates. This was represented as an increase in the provision. The allowance for Residential Real Estate loans increased due to an increase in loss rates for this type of loan. The result was represented by an increase in the provision. The allowance for Real Estate Construction loans decreased due to a decrease in loan balances. This was represented as a decrease in the provision. Management feels that the unallocated amount is appropriate and within the relevant range for the allowance that is reflective of the risk in the portfolio at December 31, 2021.

52

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 4 - ALLOWANCE FOR LOAN LOSSES (Continued)

Allowance for loan losses:

December 31, 2020	Beginning balance		Charge-offs			Recoveries		Provision (Credit)		Ending Balance
Commercial & Agriculture	$	2,219	$	(20	)	$	7	$	604	$	2,810
Commercial Real Estate:
Owner Occupied		2,541		(148	)		259		1,405		4,057
Non-Owner Occupied		6,584		—			48		5,819		12,451
Residential Real Estate		1,582		(236	)		218		920		2,484
Real Estate Construction		1,250		—			4		1,185		2,439
Farm Real Estate		344		—			13		(19)		338
Consumer and Other		247		(61	)		65		(42)		209
Unallocated		—		—			—		240		240
Total	$	14,767	$	(465	)	$	614	$	10,112	$	25,028

For the year ended December 31, 2020, the Company provided $10,112 to the allowance for loan losses. The provision was primarily the result of an increase in Civista’s qualitative factors, primarily changes in international, national, regional and local conditions, related to the economic shutdown driven by the ongoing COVID-19 pandemic. Economic impacts related to the COVID-19 pandemic during 2020 included the loss of revenue by our business clients, disruption of supply chains, additional employee costs for businesses due to the pandemic, higher unemployment rates throughout our footprint and a large number of customers requesting payment relief. The allowance for Commercial & Agriculture loans increased due to an increase in general reserves required for this type as a result of an increase in loan balances mainly from Civista’s participation in the PPP loan program and by an increase in loss rates, resulting in an increase in the provision. PPP loans are eligible for a 100% guaranty by the U.S. Small Business Administration (“SBA”) and, as a result, the reserve percentage for PPP loans is substantially less than the other loans in this segment. However, in the event of a loss resulting from a default on a PPP loan, and a determination by the SBA that there was a deficiency in the manner on which the PPP loan was originated or funded, the SBA may deny its liability under the guaranty.

For the year ended December 31, 2020, the allowance for Commercial Real Estate – Owner Occupied loans increased due to an increase in general reserves required for this type as a result of higher loan balances, an increase in classified loans and the volume of loans in payment deferral, and an increase in loss rates. The result was represented as an increase in the provision. The allowance for Commercial Real Estate – Non-Owner Occupied loans increased due to an increase in general reserves required as a result of an increase in loan balances, an increase in classified loans and the volume of loans in payment deferral, and an increase in loss rates. This was represented as an increase in the provision. The allowance for Residential Real Estate loans increased due to an increase in general reserves required for this type as a result of factors related to the COVID-19 pandemic, offset by a decrease in loan balances, represented by an increase in the provision. The allowance for Real Estate Construction loans increased due to an increase in general reserves required as a result of an increase in loan balances and an increase in loss rates, represented by an increase in the provision. The allowance for Farm Real Estate loans decreased due to a decrease in general reserves required as a result of a decrease in loan balances. The result was represented as a decrease in the provision.​​​​​​​

53

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 4 - ALLOWANCE FOR LOAN LOSSES (Continued)

The allowance for Consumer and Other loans decreased due to a decrease in general reserves required as a result of a decrease in loan balances and loss rates. The result was represented as a decrease in the provision.

Allowance for loan losses:

December 31, 2019	Beginning balance		Charge-offs			Recoveries		Provision (Credit)			Ending Balance
Commercial & Agriculture	$	1,747	$	(114	)	$	86	$	500		$	2,219
Commercial Real Estate:
Owner Occupied		1,962		(161	)		289		451			2,541
Non-Owner Occupied		5,803		—			102		679			6,584
Residential Real Estate		1,531		(294	)		259		86			1,582
Real Estate Construction		1,046		(24	)		3		225			1,250
Farm Real Estate		397		—			5		(58	)		344
Consumer and Other		284		(183	)		85		61			247
Unallocated		909		—			—		(909	)		—
Total	$	13,679	$	(776	)	$	829	$	1,035		$	14,767

For the year ended December 31, 2019, the allowance for Commercial & Agriculture loans increased as a result of an increase in general reserves due to higher loan balances. The result was represented as an increase in the provision. The allowance for Commercial Real Estate – Owner Occupied loans increased as a result of an increase in general reserves due to higher loan balances. The result was represented as an increase in the provision. The allowance for Commercial Real Estate – Non-Owner Occupied loans increased due to an increase in general reserves required for this type as a result of higher loan balances. The allowance for Residential Real Estate loans increased as a result of an increase in general reserves required for this type as a result of an increase in outstanding loan balances, represented by an increase in the provision. The allowance for Real Estate Construction loans increased due to higher outstanding loan balances for this type of loan. The allowance for Farm Real Estate loans was reduced by a decrease in general reserves required for this type as a result of lower outstanding loan balances. The result was represented as a decrease in the provision.​​​​​​​

54

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 4 - ALLOWANCE FOR LOAN LOSSES (Continued)

The following tables present, by portfolio segment, the allocation of the allowance for loan losses and related loan balances as of December 31, 2021 and December 31, 2020.

December 31, 2021	Loans acquired with credit deterioration		Loans individually evaluated for impairment		Loans collectively evaluated for impairment		Total
Allowance for loan losses:
Commercial & Agriculture	$	—	$	—	$	2,600	$	2,600
Commercial Real Estate:
Owner Occupied		—		7		4,457		4,464
Non-Owner Occupied		—		—		13,860		13,860
Residential Real Estate		—		11		2,586		2,597
Real Estate Construction		—		—		1,810		1,810
Farm Real Estate		—		—		287		287
Consumer and Other		—		—		176		176
Unallocated		—		—		847		847
Total	$	—	$	18	$	26,623	$	26,641
Outstanding loan balances:
Commercial & Agriculture	$	—	$	—	$	246,502	$	246,502
Commercial Real Estate:
Owner Occupied		—		187		295,265		295,452
Non-Owner Occupied		—		—		829,310		829,310
Residential Real Estate		290		526		429,244		430,060
Real Estate Construction		—		—		157,127		157,127
Farm Real Estate		—		509		27,910		28,419
Consumer and Other		—		—		11,009		11,009
Total	$	290	$	1,222	$	1,996,367	$	1,997,879

55

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 4 - ALLOWANCE FOR LOAN LOSSES (Continued)

December 31, 2020	Loans acquired with credit deterioration		Loans individually evaluated for impairment		Loans collectively evaluated for impairment		Total
Allowance for loan losses:
Commercial & Agriculture	$	—	$	73	$	2,737	$	2,810
Commercial Real Estate:
Owner Occupied		—		5		4,052		4,057
Non-Owner Occupied		—		—		12,451		12,451
Residential Real Estate		—		29		2,455		2,484
Real Estate Construction		—		—		2,439		2,439
Farm Real Estate		—		—		338		338
Consumer and Other		—		—		209		209
Unallocated		—		—		240		240
Total	$	—	$	107	$	24,921	$	25,028
Outstanding loan balances:
Commercial & Agriculture	$	—	$	74	$	409,802	$	409,876
Commercial Real Estate:
Owner Occupied		—		980		277,433		278,413
Non-Owner Occupied		—		48		705,024		705,072
Residential Real Estate		388		946		441,254		442,588
Real Estate Construction		—		—		175,609		175,609
Farm Real Estate		—		618		32,484		33,102
Consumer and Other		—		—		12,842		12,842
Total	$	388	$	2,666	$	2,054,448	$	2,057,502

The following tables represent credit exposures by internally assigned risk ratings for the periods ended December 31, 2021 and 2020. The remaining loans in the Residential Real Estate, Real Estate Construction and Consumer and Other loan categories that are not assigned a risk grade are presented in a separate table below. The risk rating analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled or at all. The Company’s internal credit risk rating system is based on experiences with similarly graded loans.

The Company’s internally assigned grades are as follows:

• Pass – loans which are protected by the current net worth and paying capacity of the obligor or by the value of the underlying collateral.

• Special Mention – loans where a potential weakness or risk exists, which could cause a more serious problem if not corrected.

• Substandard – loans that have a well-defined weakness based on objective evidence and are characterized by the distinct possibility that Civista will sustain some loss if the deficiencies are not corrected.

56

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 4 - ALLOWANCE FOR LOAN LOSSES (Continued)

• Doubtful – loans classified as doubtful have all the weaknesses inherent in a substandard asset. In addition, these weaknesses make collection or liquidation in full highly questionable and improbable, based on existing circumstances.

• Loss – loans classified as a loss are considered uncollectible, or of such value that continuance as an asset is not warranted.

• Unrated – Generally, Residential Real Estate, Real Estate Construction and Consumer and Other loans are not risk-graded, except when collateral is used for a business purpose.

December 31, 2021	Pass		Special Mention		Substandard		Doubtful		Ending Balance
Commercial & Agriculture	$	244,787	$	526	$	1,189	$	—	$	246,502
Commercial Real Estate:
Owner Occupied		290,617		3,119		1,716		—		295,452
Non-Owner Occupied		764,181		28,042		37,087		—		829,310
Residential Real Estate		77,594		164		4,455		—		82,213
Real Estate Construction		136,149		260		5		—		136,414
Farm Real Estate		27,023		205		1,191		—		28,419
Consumer and Other		764		—		20		—		784
Total	$	1,541,115	$	32,316	$	45,663	$	—	$	1,619,094
December 31, 2020	Pass		Special Mention		Substandard		Doubtful		Ending Balance
Commercial & Agriculture	$	401,636	$	4,472	$	3,768	$	—	$	409,876
Commercial Real Estate:
Owner Occupied		248,316		19,429		10,668		—		278,413
Non-Owner Occupied		604,909		58,270		41,893		—		705,072
Residential Real Estate		81,409		668		5,524		—		87,601
Real Estate Construction		158,207		962		492		—		159,661
Farm Real Estate		30,486		216		2,400		—		33,102
Consumer and Other		833		—		33		—		866
Total	$	1,525,796	$	84,017	$	64,778	$	—	$	1,674,591

Due to the business disruptions and shut-downs due to the Covid-19 pandemic, in 2020, management offered payment deferments to a number of customers that had previously been current in all respects. Civista instituted an enhanced portfolio management process which included meeting with customers, requesting additional financial information and evaluating cashflow and adjusting risk ratings as conditions warrant. During this process we systematically downgraded a significant number of loans to recognize the increased risk attributed to the pandemic. Additionally, Civista offered longer term deferrals under Section 4013 of the Cares Act, that were also downgraded as appropriate. Based on improved financial performance the bank has upgraded 48% of criticized loans during the year. The lodging industry was hit the hardest and recovery is taking longer for that segment. Civista believes it has prudently identified risk, assigned appropriate risk ratings, and has a comprehensive portfolio management process to identify and quantify risk.

57

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 4 - ALLOWANCE FOR LOAN LOSSES (Continued)

The following tables present performing and nonperforming loans based solely on payment activity for the years ended December 31, 2021 and December 31, 2020 that have not been assigned an internal risk grade. The types of loans presented here are not assigned a risk grade unless there is evidence of a problem. Payment activity is reviewed by management on a monthly basis to evaluate performance. Loans are considered to be nonperforming when they become 90 days past due or if management thinks that we may not collect all of our principal and interest. Nonperforming loans also include certain loans that have been modified in Troubled Debt Restructurings (TDRs) where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. These concessions typically result from the Company’s loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions due to economic status. Certain TDRs are classified as nonperforming at the time of restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months.

December 31, 2021	Residential Real Estate		Real Estate Construction		Consumer and Other		Total
Performing	$	347,847	$	20,713	$	10,225	$	378,785
Nonperforming		—		—		—		—
Total	$	347,847	$	20,713	$	10,225	$	378,785

December 31, 2020	Residential Real Estate		Real Estate Construction		Consumer and Other		Total
Performing	$	354,987	$	15,948	$	11,976	$	382,911
Nonperforming		—		—		—		—
Total	$	354,987	$	15,948	$	11,976	$	382,911

The following tables include an aging analysis of the recorded investment of past due loans outstanding as of December 31, 2021 and 2020.

December 31, 2021	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater		Total Past Due		Current		Purchased Credit- Impaired Loans		Total Loans		Past Due 90 Days and Accruing
Commercial & Agriculture	$	249	$	13	$	78	$	340	$	246,162	$	—	$	246,502	$	—
Commercial Real Estate:
Owner Occupied		—		—		106		106		295,346		—		295,452		—
Non-Owner Occupied		—		—		4		4		829,306		—		829,310		—
Residential Real Estate		1,848		879		842		3,569		426,201		290		430,060		—
Real Estate Construction		—		—		—		—		157,127		—		157,127		—
Farm Real Estate		—		—		—		—		28,419		—		28,419		—
Consumer and Other		42		—		9		51		10,958		—		11,009		—
Total	$	2,139	$	892	$	1,039	$	4,070	$	1,993,519	$	290	$	1,997,879	$	—

58

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 4 - ALLOWANCE FOR LOAN LOSSES (Continued)

December 31, 2020	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater		Total Past Due		Current		Purchased Credit- Impaired Loans		Total Loans		Past Due 90 Days and Accruing
Commercial & Agriculture	$	117	$	25	$	50	$	192	$	409,684	$	—	$	409,876	$	—
Commercial Real Estate:
Owner Occupied		—		4		102		106		278,307		—		278,413		—
Non-Owner Occupied		—		—		6		6		705,066		—		705,072		—
Residential Real Estate		1,059		867		1,314		3,240		438,960		388		442,588		—
Real Estate Construction		—		—		—		—		175,609		—		175,609		—
Farm Real Estate		—		—		4		4		33,098		—		33,102		—
Consumer and Other		59		1		16		76		12,766		—		12,842		—
Total	$	1,235	$	897	$	1,492	$	3,624	$	2,053,490	$	388	$	2,057,502	$	—

The following table presents loans on nonaccrual status, excluding purchased credit-impaired (PCI) loans, as of December 31, 2021 and 2020.

	2021		2020
Commercial & Agriculture	$	78	$	139
Commercial Real Estate:
Owner Occupied		334		964
Non-Owner Occupied		4		6
Residential Real Estate		3,232		3,893
Real Estate Construction		5		7
Farm Real Estate		—		85
Consumer and Other		20		31
Total	$	3,673	$	5,125

Nonaccrual Loans: Loans are considered for nonaccrual status upon reaching 90 days delinquency, unless the loan is well secured and in the process of collection, although Civista may be receiving partial payments of interest and partial repayments of principal on such loans. When a loan is placed on nonaccrual status, previously accrued but unpaid interest is deducted from interest income. A loan may be returned to accruing status only if one of three conditions are met: the loan is well-secured and none of the principal and interest has been past due for a minimum of 90 days; the loan is a TDR and the borrower has made a minimum of six months payments; or the principal and interest payments are reasonably assured and a sustained period of performance has occurred, generally six months. The gross interest income that would have been recorded on nonaccrual loans in 2021, 2020 and 2019 if the loans had been current in accordance with their original terms and had been outstanding throughout the period or since origination, if held for part of the period, was $307, $536 and $571, respectively. The amount of interest income on such loans recognized on a cash basis was $716 in 2021, $477 in 2020 and $379 in 2019.

Modifications: A modification of a loan constitutes a TDR when Civista for economic or legal reasons related to a borrower’s financial difficulties grants a concession to the borrower that it would not otherwise consider. Civista offers various types of concessions when modifying a loan, however, forgiveness of principal is rarely granted. Commercial

59

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 4 - ALLOWANCE FOR LOAN LOSSES (Continued)

Real Estate loans modified in a TDR often involve reducing the interest rate lower than the current market rate for new debt with similar risk. Real Estate loans modified in a TDR were primarily comprised of interest rate reductions where monthly payments were lowered to accommodate the borrowers’ financial needs.

Loans modified in a TDR are typically already on non-accrual status and partial charge-offs have in some cases already been taken against the outstanding loan balance. As a result, loans modified in a TDR may have the financial effect of increasing the specific allowance associated with the loan. An allowance for impaired loans that have been modified in a TDR are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or the estimated fair value of the collateral, less any selling costs, if the loan is collateral dependent. Management exercises significant judgment in developing these estimates. TDRs accounted for $18 of the allowance for loan losses as of December 31, 2021, $35 as of December 31, 2020 and $91 as of December 31, 2019.

Loan Modifications/Troubled Debt Restructurings

In the second quarter of 2020, in the initial days of the pandemic, Civista booked 90-day payment modifications on 813 loans with an aggregate principal balance outstanding of $431.3 million. Additional 90-day modifications were extended on 100 loans with an aggregate principal balance outstanding of $124.4 million. Both deferral programs primarily consisted of the deferral of principal and/or interest payments. All such modified loans were performing at December 31, 2019 and complied with the provisions of the CARES Act to not be considered a TDR.

As of December 31, 2021, Civista had 7 loans with an aggregate principal balance outstanding of $5,142 that remained on CARES Act modifications. Details with respect to loan modifications that remain on deferred status are as follows:

Type of Loan	Number of Loans		Balance		Percent of Loans Outstanding1
			(In thousands)
Commercial & Agriculture		2	$	498		0.03	%
Commercial Real Estate:
Non-Owner Occupied		5		4,644		0.24	%
Total		7	$	5,142		0.26	%
1 excluding PPP loans

60

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 4 - ALLOWANCE FOR LOAN LOSSES (Continued)

There were no loans modified during the twelve month period ended December 31, 2021 and 2020. Loan modifications that are considered TDRs completed during the twelve month periods ended December 31, 2019 were as follows:

	For the Twelve Month Period Ended December 31, 2019
	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial & Agriculture		—	$	—	$	—
Commercial Real Estate:
Owner Occupied		—		—		—
Non-Owner Occupied		1		382		382
Residential Real Estate		—		—		—
Real Estate Construction		—		—		—
Farm Real Estate		—		—		—
Consumer and Other		—		—		—
Total Loan Modifications		1	$	382	$	382

Recidivism, or the borrower defaulting on its obligation pursuant to a modified loan, results in the loan once again becoming a non-accrual loan. Recidivism occurs at a notably higher rate than do defaults on new originations loans, so modified loans present a higher risk of loss than do new origination loans. During the periods ended December 31, 2021, 2020 and 2019, there were no defaults on loans that were modified and considered TDRs during the previous twelve months.

Impaired Loans: Larger (greater than $350) commercial loan, commercial real estate loan and farm real estate loan relationships, all TDRs and residential real estate and consumer loans that are part of a larger relationship are tested for impairment. These loans are analyzed to determine if it is probable that all amounts will not be collected according to the contractual terms of the loan agreement. If management determines that the value of the impaired loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through an allowance estimate or a charge-off to the allowance.

61

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 4 - ALLOWANCE FOR LOAN LOSSES (Continued)

The following table includes the recorded investment and unpaid principal balances for impaired financing receivables, excluding PCI loans, with the associated allowance amount, if applicable, as of December 31, 2021 and 2020.

	December 31, 2021						December 31, 2020
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:
Commercial Real Estate:
Owner Occupied	$	—	$	—			$	757	$	757
Non-Owner Occupied		—		—				48		48
Residential Real Estate		503		528				915		940
Farm Real Estate		509		509				618		618
Total		1,012		1,037				2,338		2,363
With an allowance recorded:
Commercial & Agriculture		—		—	$	—		74		74	$	73
Commercial Real Estate:
Owner Occupied		187		187		7		223		223		5
Residential Real Estate		23		27		11		31		35		29
Total		210		214		18		328		332		107
Total:
Commercial & Agriculture		—		—		—		74		74		73
Commercial Real Estate:
Owner Occupied		187		187		7		980		980		5
Non-Owner Occupied		—		—		—		48		48		—
Residential Real Estate		526		555		11		946		975		29
Farm Real Estate		509		509		—		618		618		—
Total	$	1,222	$	1,251	$	18	$	2,666	$	2,695	$	107

The following tables include the average recorded investment and interest income recognized for impaired financing receivables as of, and for the years ended, December 31, 2021, 2020 and 2019.

For the year ended:	December 31, 2021				December 31, 2020
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial & Agriculture	$	15	$	—	$	88	$	4
Commercial Real Estate:
Owner Occupied		396		18		520		27
Non-Owner Occupied		23		1		243		16
Residential Real Estate		629		31		1,361		43
Farm Real Estate		569		24		647		26
Total	$	1,632	$	74	$	2,859	$	116

62

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 4 - ALLOWANCE FOR LOAN LOSSES (Continued)

For the year ended:	December 31, 2019
	Average Recorded Investment		Interest Income Recognized
Commercial & Agriculture	$	367	$	33
Commercial Real Estate:
Owner Occupied		456		32
Non-Owner Occupied		308		20
Residential Real Estate		1,271		58
Farm Real Estate		683		29
Total	$	3,085	$	172

Foreclosed assets acquired in settlement of loans are carried at fair value less estimated costs to sell and are included in other assets on the Consolidated Balance Sheet. As of December 31, 2021, there were no foreclosed assets included in other assets. As of December 31, 2020, there were $31 of foreclosed assets included in other assets. As of December 31, 2020 and 2019, the Company had initiated formal foreclosure procedures on $293 and $741, respectively, of Residential Real Estate loans.

Changes in the amortizable yield for PCI loans were as follows, since acquisition:

	At December 31, 2021			At December 31, 2020
	(In Thousands)			(In Thousands)
Balance at beginning of period	$	225		$	255
Acquisition of PCI loans		—			—
Accretion		(77	)		(336	)
Transfers from non-accretable to accretable		69			306
Balance at end of period	$	217		$	225

The following table presents additional information regarding loans acquired and accounted for in accordance with ASC 310-30:

	At December 31, 2021		At December 31, 2020
	Acquired Loans with Specific Evidence of Deterioration of Credit Quality (ASC 310-30)		Acquired Loans with Specific Evidence of Deterioration of Credit Quality (ASC 310-30)
	(In Thousands)
Outstanding balance	$	512	$	687
Carrying amount		290		388

There was no allowance for loan losses recorded for acquired loans with or without specific evidence of deterioration in credit quality as of December 31, 2021 and 2020, respectively.

63

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 5 - OTHER COMPREHENSIVE INCOME (LOSS)

The following table presents the components of other comprehensive income (loss), net of tax, as of December 31, 2021, 2020 and 2019:

	Before Tax			Tax Effect			Net of Tax
Year Ended December 31, 2021
Net unrealized Gains (Losses) on Investment Securities:
Other comprehensive income (loss) before reclassifications	$	(8,570	)	$	(1,799	)	$	(6,771	)
Amounts reclassified from accumulated other comprehensive income (loss)		(1	)		—			(1	)
Net Unrealized Gains (Losses) on Investment Securities		(8,571	)		(1,799	)		(6,772	)
Defined Benefit Plans:
Other comprehensive income (loss) before reclassifications		992			209			783
Amounts reclassified from accumulated other comprehensive income (loss)		240			50			190
Defined Benefit Plans, Net		1,232			259			973
Other Comprehensive Income	$	(7,339	)	$	(1,540	)	$	(5,799	)
Year Ended December 31, 2020
Net unrealized Gains (Losses) on Investment Securities:
Other comprehensive income (loss) before reclassifications	$	10,935		$	2,297		$	8,638
Amounts reclassified from accumulated other comprehensive income (loss)		(94	)		(20	)		(74	)
Net Unrealized Gains on Investment Securities		10,841			2,277			8,564
Defined Benefit Plans:
Other comprehensive income (loss) before reclassifications		(1,326	)		(279	)		(1,047	)
Amounts reclassified from accumulated other comprehensive income (loss)		289			61			228
Defined Benefit Plans, Net		(1,037	)		(218	)		(819	)
Other Comprehensive Income	$	9,804		$	2,059		$	7,745
Year Ended December 31, 2019
Net unrealized Gains (Losses) on Investment Securities:
Other comprehensive income (loss) before reclassifications	$	13,368		$	2,807		$	10,561
Amounts reclassified from accumulated other comprehensive income (loss)		(32	)		(7	)		(25	)
Net Unrealized Losses on Investment Securities		13,336			2,800			10,536
Defined Benefit Plans:
Other comprehensive income (loss) before reclassifications		(2,953	)		(620	)		(2,333	)
Amounts reclassified from accumulated other comprehensive income (loss)		156			33			123
Defined Benefit Plans, Net		(2,797	)		(587	)		(2,210	)
Other Comprehensive Loss	$	10,539		$	2,213		$	8,326

64

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 5 - OTHER COMPREHENSIVE INCOME (LOSS) (Continued)

The following table presents the changes in each component of accumulated other comprehensive income (loss), net of tax, as of December 31, 2021, 2020 and 2019.

	For the Year Ended December 31, 2021									For the Year Ended December 31, 2020								For the Year Ended December 31, 2019
	Unrealized Gains and Losses on Available for Sale Securities			Defined Benefit Pension Items			Total			Unrealized Gains and Losses on Available for Sale Securities			Defined Benefit Pension Items			Total		Unrealized Gains and Losses on Available for Sale Securities			Defined Benefit Pension Items			Total
Beginning balance	$	21,447		$	(6,828	)	$	14,619		$	12,883		$	(6,009	)	$	6,874	$	2,347		$	(3,799	)	$	(1,452	)
Other comprehensive income (loss) before reclassifications		(6,771	)		783			(5,988	)		8,638			(1,047	)		7,591		10,561			(2,333	)		8,228
Amounts reclassified from accumulated other comprehensive income (loss)		(1	)		190			189			(74	)		228			154		(25	)		123			98
Net current-period other comprehensive income (loss)		(6,772	)		973			(5,799	)		8,564			(819	)		7,745		10,536			(2,210	)		8,326
Ending balance	$	14,675		$	(5,855	)	$	8,820		$	21,447		$	(6,828	)	$	14,619	$	12,883		$	(6,009	)	$	6,874

The following table presents the amounts reclassified out of each component of accumulated other comprehensive loss as of December 31, 2021, 2020 and 2019.

	Amount Reclassified from Accumulated Other Comprehensive Loss (a)
	For the year ended December 31,
Details about Accumulated Other Comprehensive Income (Loss) Components	2021			2020			2019			Affected Line Item in the Statement Where Net Income is Presented
Unrealized gains (losses) on available for sale securities	$	1		$	94		$	32		Net gain on sale of securities
Tax effect		—			(20	)		(7	)	Income taxes
		1			74			25
Amortization of defined benefit pension items
Actuarial losses		(240	)(b)		(289	)(b)		(156	)(b)	Other operating expenses
Tax effect		50			61			33		Income taxes
		(190	)		(228	)		(123	)
Total reclassifications for the period	$	(189	)	$	(154	)	$	(98	)

(a) Amounts in parentheses indicate expenses and other amounts indicate income.

65

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 5 - OTHER COMPREHENSIVE INCOME (LOSS) (Continued)

(b) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost.

NOTE 6 - PREMISES AND EQUIPMENT

Year-end premises and equipment were as follows:

	At December 31,
	2021			2020
Land and improvements	$	6,970		$	6,879
Buildings and improvements		29,305			28,835
Furniture and equipment		23,786			22,849
Total		60,061			58,563
Accumulated depreciation		(37,616	)		(35,983	)
Premises and equipment, net	$	22,445		$	22,580

Depreciation expense was $1,976, $2,253 and $2,240 for 2021, 2020 and 2019, respectively.

NOTE 7 - GOODWILL AND INTANGIBLE ASSETS

There was no change in the carrying amount of goodwill of $76,851 for the year ended December 31, 2021 and December 31, 2020.

Management performs an evaluation of goodwill for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that the asset might be impaired. Management performed an evaluation of the Company’s goodwill during the fourth quarter of 2021. Based on this test, management concluded that the Company’s goodwill was not impaired at December 31, 2021.

Acquired intangible assets were as follows as of year-end.

	2021						2020
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Core deposit intangible assets(1):
Core deposit intangibles		8,527		3,588		4,939		14,792		8,963		5,829
Total core deposit intangible assets	$	8,527	$	3,588	$	4,939	$	14,792	$	8,963	$	5,829

(1) Excludes fully amortized core deposit intangible assets

Aggregate core deposit intangible amortization expense was $890, $913 and $945 for 2021, 2020 and 2019, respectively.

66

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 7 - GOODWILL AND INTANGIBLE ASSETS (Continued)

Activity for mortgage servicing rights (MSRs) and the related valuation allowance follows:

	2021			2020
Mortgage Servicing Rights:
Beginning of year	$	2,246		$	1,562
Additions		764			1,310
Disposals		—			—
Amortized to expense		572			524
Other Charges		—			—
Change in valuation allowance		(204	)		102
End of year	$	2,642		$	2,246
Valuation allowance:
Beginning of year	$	204		$	102
Additions expensed		261			162
Reductions credited to operations		(465	)		(60	)
Direct write-offs		—			—
End of year	$	—		$	204

The unpaid principal balance of mortgage loans serviced for third parties was $405,786 at December 31, 2021, compared to $353,473 at December 31, 2020 and $206,950 at December 31, 2019.

Aggregate mortgage servicing rights (MSRs) amortization was $572, $524 and $247 for 2021, 2020 and 2019, respectively.

Mortgage loan contractual servicing fees were $947, $634 and $502 for 2021, 2020 and 2019, respectively. Mortgage loan contractual servicing fees are included in Other income on the Consolidated Statements of Operations.

The fair value of servicing rights was $2,642 and $2,246 at year-end 2021 and 2020, respectively. Fair value at year-end 2021 was determined using a discount rate of 12.0%, prepayment speeds ranging from 8.0% to 35.0%, depending on the stratification of the specific right, and a weighted average default rate of 0.41%. Fair value at year-end 2020 was determined using a discount rate of 12.0%, prepayment speeds ranging from 12.0% to 50.0%, depending on the stratification of the specific right, and a default rate of 0.93%.

Estimated amortization expense for each of the next five years and thereafter is as follows:

	MSRs		Core deposit intangibles		Total
2022	$	137	$	868	$	1,005
2023		137		841		978
2024		137		804		941
2025		137		708		845
2026		135		670		805
Thereafter		1,959		1,048		3,007
	$	2,642	$	4,939	$	7,581

67

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 8 - INTEREST-BEARING DEPOSITS

Interest-bearing deposits as of December 31, 2021 and 2020 were as follows:

	2021		2020
Demand	$	537,510	$	410,139
Savings and Money markets		843,837		771,612
Certificates of Deposit:
$250 and over		55,011		70,989
Other		149,521		169,453
Individual Retirement Accounts		41,916		46,396
Total	$	1,627,795	$	1,468,589

Scheduled maturities of certificates of deposit, including IRAs at December 31, 2021 were as follows:

2022	$	173,834
2023		45,195
2024		18,810
2025		3,829
2026		3,596
Thereafter		1,184
Total	$	246,448

Deposits from the Company’s principal shareholders, officers, directors, and their affiliates at year-end 2021 and 2020 were $7,690 and $12,487, respectively.

As of December 31, 2021, CDs and IRAs totaling $58,367 met or exceeded the FDIC’s insurance limit of $250,000.

As of December 31, 2021, brokered deposits totaled $26,610.

NOTE 9 - SHORT-TERM BORROWINGS

Short-term borrowings, which consist of federal funds purchased and other short-term borrowings are summarized as follows:

	At December 31, 2021					At December 31, 2020
	Federal Funds Purchased			Short-term Borrowings		Federal Funds Purchased			Short-term Borrowings
Outstanding balance at year end	$	—		$	—	$	—		$	—
Maximum indebtedness during the year		50,000			—		50,000			102,700
Average balance during the year		137			—		228			8,151
Average rate paid during the year		0.73	%		—		0.35	%		1.64	%
Interest rate on year end balance		—			—		—			—

68

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 9 - SHORT-TERM BORROWINGS (Continued)

	At December 31, 2019
	Federal Funds Purchased			Short-term Borrowings
Outstanding balance at year end	$	—		$	101,500
Maximum indebtedness during the year		20,000			192,700
Average balance during the year		137			112,088
Average rate paid during the year		2.19	%		2.32	%
Interest rate on year end balance		—			1.63	%

Average balances during the year represent daily averages. Average interest rates represent interest expense divided by the related average balances.

These borrowing transactions can range from overnight to six months in maturity. At December 31, 2021 and 2020, there were no short-term borrowings with outstanding balances. The average maturity was one day at December 31, 2019.

NOTE 10 - FEDERAL HOME LOAN BANK ADVANCES

Long-term advances from the FHLB were $75,000 and $125,000 at December 31, 2021 and December 31, 2020, respectively. Outstanding balances have a maturity date of October 2029 with fixed rate of 1.03%. The average rate on outstanding advances was 1.03% at December 31, 2021. Outstanding advances are prepayable in whole only and are subject to a termination fee. The Company has one long-term advance, with a put options. The advance is in the amount of $75,000 and is puttable beginning October 2020 and every quarter thereafter.

During the second quarter of 2021, the Company prepaid a $50,000 advance with a rate of 2.05% and a remaining maturity of approximately 8 years at a pre-tax loss of approximately $3,717. The prepayment penalty of $3,717 was recorded in other operating expenses on the Consolidated Statements of Operations.

Scheduled principal reductions of FHLB advances outstanding at December 31, 2021 were as follows:

2029	$	75,000
Total	$	75,000

In addition to the borrowing, the Company had outstanding letters of credit with the FHLB totaling $21,300 and $20,000 at year-end 2021 and 2020, respectively, used for pledging to secure public funds. FHLB borrowings and the letters of credit were collateralized by FHLB stock and by $737,389 and $217,500 of residential mortgage loans under a blanket lien arrangement at year-end 2021 and 2020, respectively.

The Company had a FHLB maximum borrowing capacity of $677,834 as of December 31, 2021, with remaining borrowing capacity of approximately $581,534. The borrowing arrangement with the FHLB is subject to annual renewal. The maximum borrowing capacity is recalculated at least quarterly.

69

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 11 - SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE 

Securities sold under agreements to repurchase are used to facilitate the needs of our customers as well as to facilitate our short-term funding needs. Securities sold under repurchase agreements are carried at the amount of cash received in association with the agreement. We continuously monitor the collateral levels and may be required, from time to time, to provide additional collateral based on the fair value of the underlying securities. Securities pledged as collateral under repurchase agreements are maintained with our safekeeping agents.

The following table presents detail regarding the securities pledged as collateral under repurchase agreements as of December 31, 2021 and 2020. All of the repurchase agreements are overnight agreements.

	December 31, 2021		December 31, 2020
Securities pledged for repurchase agreements:
U.S. Treasury securities	$	16,478	$	899
Obligations of U.S. government agencies		9,017		28,015
Total securities pledged	$	25,495	$	28,914
Gross amount of recognized liabilities for repurchase agreements	$	25,495	$	28,914
Amounts related to agreements not included in offsetting disclosures above	$	—	$	—

Information concerning securities sold under agreements to repurchase was as follows:

	2021			2020			2019
Outstanding balance at year end	$	25,495		$	28,914		$	18,674
Average balance during the year		24,390			24,390			18,321
Average interest rate during the year		0.09	%		0.10	%		0.10	%
Maximum month-end balance during the year	$	34,200		$	31,885		$	21,970
Weighted average interest rate at year end		0.05	%		0.10	%		0.10	%

NOTE 12 - SUBORDINATED DEBENTURES

On November 30, 2021, the Company entered into a Subordinated Note Purchase Agreement pursuant to which the Company sold and issued $75,000 aggregate principal amount of its 3.25% Fixed-to-Floating Rate Subordinated Notes due 2031. The Notes have a stated maturity of December 31, 2031.

The Notes will initially bear interest at a fixed rate of 3.25% per annum, from and including November 30, 2021, to but excluding December 1, 2026, with interest payable semi-annually in arrears. From and including December 1, 2026, to but excluding the stated maturity date or early redemption date, the interest rate will reset quarterly to an annual floating rate equal to the then-current benchmark rate, which will initially be the three-month Secured Overnight Financing Rate (SOFR) plus 219 basis points, with interest during such period payable quarterly in arrears. If three-month SOFR cannot be determined during the applicable floating rate period, a different index will be determined and used in accordance with the terms of the Notes and underlying Indenture.

70

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 12 - SUBORDINATED DEBENTURES (Continued)

Prior to December 1, 2026, the Company may redeem the Notes, in whole but not in part, only under certain limited circumstances as set forth in the Indenture. On or after December 1, 2026, the Company may, at its option, redeem the Notes, in whole or in part, on any interest payment date, subject to the receipt of any required regulatory approvals. Any redemption by the Company would be at a redemption price equal to 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest to but excluding the date of redemption. 

Trusts formed by the Company in March of 2002 and March of 2003 issued floating rate trust preferred securities, in the amounts of $5,000 and $7,500, respectively, through special purpose entities as part of pooled offerings of such securities. The Company issued subordinated debentures to the trusts in exchange for the proceeds of the offerings, which debentures represent the sole assets of the trusts. The Company may redeem the subordinated debentures, in whole but not in part, at face value. In March 2007, the Company elected to redeem and refinance the $5,000 floating rate subordinated debenture. The refinancing was done at face value and resulted in a 2.00% reduction in the floating rate. The new subordinated debenture has a 30-year maturity and is redeemable, in whole or in part, anytime without penalty. The replacement subordinated debenture does not have any deferred issuance cost associated with it. At December 31, 2021, the interest rate on the $7,500 debenture was 3.28% and the interest rate on the $5,000 debenture was 1.72%. Both debentures are indexed to the 3-month LIBOR.

Additionally, the Company formed an additional trust in September of 2004 that issued $12,500 of 6.05% fixed rate trust preferred securities for five years, then becoming floating rate trust preferred securities, through a special purpose entity as part of a pooled offering of such securities. The Company issued subordinated debentures to the trusts in exchange for the proceeds of the offerings, which debentures represent the sole assets of the trusts. The Company may redeem the subordinated debentures at face value without penalty. At December 31, 2021, the interest rate on the $12,500 subordinated debenture was 2.37%. The debenture is indexed to the 3-month LIBOR.

Finally, the Company acquired two additional trust preferred securities as part of its acquisition of Futura Banc Corp (Futura) in December 2007. Futura TPF Trust I and Futura TPF Trust II were formed in June of 2005 in the amounts of $2,500 and $1,927, respectively. Futura had issued subordinated debentures to the trusts in exchange for ownership of all of the common security of the trusts and the proceeds of the preferred securities sold by the trusts. The Company may redeem the subordinated debentures, in whole or in part, in a principal amount with integral multiples of $1,000, at 100% of the principal amount, plus accrued and unpaid interest. The subordinated debentures mature on June 15, 2035. The subordinated debentures are also redeemable in whole or in part from time to time, upon the occurrence of specific events defined within the trust indenture. At December 31, 2021, the interest rate on the $2,500 subordinated debenture was variable at 1.78%. The debenture is indexed to the 3-month LIBOR In June 2010, the rate on the $1,927 subordinated debenture switched from a fixed rate to a floating rate. At December 31, 2021, the interest rate on the $1,927 subordinated debenture was 1.78%. The debenture is indexed to the 3-month LIBOR.

Subordinated debentures in the amount of $102,813 will mature 5 years and thereafter.

71

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 13 - INCOME TAXES

Income taxes were as follows for the years ended December 31:

	2021		2020			2019
Current	$	5,111	$	6,947		$	4,713
State		587		270			307
Deferred		1,319		(2,277	)		663
Income taxes	$	7,017	$	4,940		$	5,683

Effective tax rates differed from the statutory federal income tax rate of 21% in 2021, 2020 and 2019 due to the following:

	2021			2020			2019
Income taxes computed at the statutory federal tax rate	$	9,988		$	7,798		$	8,308
Add (subtract) tax effect of:
Nontaxable interest income, net of nondeductible interest expense		(1,315	)		(1,293	)		(1,194	)
Low income housing tax credit		(1,402	)		(1,186	)		(903	)
Cash surrender value of BOLI		(252	)		(205	)		(211	)
Change in tax position BOLI		—			—			(353	)
Other		(2	)		(174	)		36
Income tax expense	$	7,017		$	4,940		$	5,683

Year-end deferred tax assets and liabilities were due to the following:

	2021			2020
Deferred tax assets
Allowance for loan losses	$	5,595		$	5,256
Deferred compensation		1,213			1,201
Pension costs		56			304
Intangible assets		231			312
Net operating loss carryforward		—			509
Deferred loan fees		614			1,260
Other		713			745
Deferred tax asset		8,422			9,587
Deferred tax liabilities
Tax depreciation in excess of book depreciation		(973	)		(851	)
Discount accretion on securities		(86	)		(10	)
FHLB stock dividends		(969	)		(969	)
Unrealized gain on securities available for sale		(3,806	)		(5,606	)
Prepaids		(276	)		(325	)
Other		(1,243	)		(979	)
Deferred tax liability		(7,353	)		(8,740	)
Net deferred tax asset	$	1,069		$	847

72

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 13 - INCOME TAXES (Continued)

No valuation allowance was established at December 31, 2021 and 2020, due to the Company’s ability to carryforward net operating losses to taxes paid in future years and certain tax strategies, coupled with the anticipated future income as evidenced by the Company’s earning potential.

The Company and its subsidiaries are subject to U.S. federal income tax. The Company is subject to tax in Ohio based upon its net worth and in Indiana based upon its net income.

There is currently no liability for uncertain tax positions and no known unrecognized tax benefits. The Company’s federal tax returns for taxable years through 2017 have been closed for purposes of examination by the Internal Revenue Service.

NOTE 14 - RETIREMENT PLANS

The Company sponsors a savings and retirement 401(k) plan, which covers all employees who meet certain eligibility requirements and who choose to participate in the plan. The matching contribution to the 401(k) plan was $1,258, $1,226 and $1,074 in 2021, 2020 and 2019, respectively. The Company’s matching contribution is 100% of an employee’s first three percent contributed and 50% of the next two percent contributed.

The Company also sponsors a pension plan which is a noncontributory defined benefit retirement plan for all employees who have attained the age of 20 1/2, completed six months of service and work 1,000 or more hours per year. Annual payments, subject to the maximum amount deductible for federal income tax purposes, are made to a pension trust fund. In 2006, the Company amended the pension plan to provide that no employee could be added as a participant to the pension plan after December 31, 2006. In April 2014, the Company amended the pension plan again to provide that no additional benefits would accrue beyond April 30, 2014.

In October 2015, the Company, on behalf of it and its subsidiaries, entered into Pension Shortfall Agreements (the “Shortfall Agreements”) with ten employees of Civista. When the Company ceased accruals to its defined benefit pension plan on April 30, 2014, the circumstances of some participants with limited periods until their anticipated retirement dates would not permit them to use other available alternatives to make up for the shortfall in their expected pension. The Company calculated the total amount of the shortfall for each of the referenced individuals after considering its contributions to other retirement benefits. Pension shortfall expense was $130 in 2021, $130 in 2020 and $161 in 2019. Included in pension shortfall expense was interest expense, totaling $9, $9 and $20 in 2021, 2020 and 2019, respectively, which was also recorded in and credited to the accounts of the ten individuals covered by this plan.

73

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 14 - RETIREMENT PLANS (Continued)

Information about the pension plan is as follows:

	2021			2020
Change in benefit obligation:
Beginning benefit obligation	$	16,656		$	15,570
Service cost		—			—
Interest cost		378			484
Curtailment gain		—			—
Settlement loss		—			—
Actuarial (gain)/loss		(921	)		1,898
Benefits paid		(711	)		(1,296	)
Settlement payments		(18	)		—
Ending benefit obligation		15,384			16,656
Change in plan assets, at fair value:
Beginning plan assets		15,257			15,183
Actual return		574			1,370
Employer contribution		—			—
Benefits paid		(711	)		(1,296	)
Settlement payments		—			—
Administrative expenses		—			—
Ending plan assets		15,120			15,257
Funded status at end of year	$	(264	)	$	(1,399	)

Amounts recognized in accumulated other comprehensive income (loss) at December 31, consist of unrecognized actuarial loss of $5,855, net of $1,556 tax in 2021 and $6,828, net of $1,815 tax in 2020.

The accumulated benefit obligation for the defined benefit pension plan was $15,384 at December 31, 2021 and $16,656 at December 31, 2020.

74

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 14 - RETIREMENT PLANS (Continued)

The components of net periodic pension expense were as follows:

	2021			2020			2019
Service cost	$	—		$	—		$	—
Interest cost		378			484			479
Expected return on plan assets		(574	)		(748	)		(811	)
Net amortization and deferral		240			289			156
Net periodic pension cost (benefit)		44			25			(176	)
Additional loss due to settlement		—			—			0
Total pension cost (benefit)	$	44		$	25		$	(176	)
Net loss (gain) recognized in other comprehensive income	$	(854	)	$	986		$	2,798
Total recognized in net periodic benefit cost and other comprehensive loss (before tax)	$	(810	)	$	1,011		$	2,622

The components of net periodic benefit cost other than the service cost component are included in the line item “other operating expenses” in the Consolidated Statement of Operations.

The estimated net loss for the defined benefit pension plan that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year is $240. The Company incurred settlement costs in 2021, 2020 and 2019 of $(18), $0 and $0, respectively.

The weighted average assumptions used to determine benefit obligations at year-end were as follows:

	2021			2020			2019
Discount rate on benefit obligation		2.74	%		2.39	%		3.13	%
Long-term rate of return on plan assets		3.84	%		4.44	%		4.96	%
Rate of compensation increase		0.00	%		0.00	%		0.00	%

The weighted average assumptions used to determine net periodic pension cost were as follows:

	2021			2020			2019
Discount rate on benefit obligation		2.39	%		3.13	%		4.14	%
Long-term rate of return on plan assets		4.44	%		4.96	%		7.00	%
Rate of compensation increase		0.00	%		0.00	%		0.00	%

The Company uses long-term market rates to determine the discount rate on the benefit obligation. Declines in the discount rate lead to increases in the actuarial loss related to the benefit obligation.

The expectation for long-term rate of return on the pension assets and the expected rate of compensation increases are reviewed periodically by management in consultation with outside actuaries and primary

75

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 14 - RETIREMENT PLANS (Continued)

investment consultants. Factors considered in setting and adjusting these rates are historic and projected rates of return on the portfolio and historic and estimated rates of increases of compensation. Since the pension plan is frozen, the rate of compensation increase used to determine the benefit obligation for 2021, 2020 and 2019 was zero.

The Company’s pension plan asset allocation at year-end 2021 and 2020 and target allocation for 2022 by asset category are as follows:

	Target   Allocation			Percentage of Plan Assets at Year-end
Asset Category	2022			2021			2020
Equity securities		0-30	%		20.0	%		20.0	%
Debt securities		70-100			80.0			80.0
Total					100.0	%		100.0	%

The Company developed the pension plan investment policies and strategies for plan assets with its pension management firm. The assets are currently invested in seven diversified investment funds, which include four equity funds and three bond funds. The long-term guidelines from above were created to maximize the return on portfolio assets while reducing the risk of the portfolio. The management firm may allocate assets among the separate accounts within the established long-term guidelines. Transfers among these accounts will be at the management firm’s discretion based on their investment outlook and the investment strategies that are outlined at periodic meetings with the Company. The expected long-term rate of return on the plan assets was 3.84% in 2021 and 4.44% in 2020. This return is based on the expected return for each of the asset categories, weighted based on the target allocation for each class.

The Company does not expect to make any contribution to its pension plan in 2022. Employer contributions totaled $0 in 2021 and 2020. A decrease in the benefit obligations and actuarial gains led to a decrease in the deficit from $1,399 at December 31, 2020 to a deficit of $264 at December 31, 2021.

Common/Collective Trust Funds

Valued at the daily NAV as reported by the funds. These funds are not traded in an active market or exchange, and the NAV per unit is calculated by dividing the net assets of the fund by the number of units outstanding, which includes observable inputs. The method described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Plan believes its valuation method is appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

Certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient are not required to be categorized in the fair value hierarchy tables.

76

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 14 - RETIREMENT PLANS (Continued)

Fair Value of Investments in Entities That Use NAV

The following table summarizes investments measured at fair value based on NAV per share as of December 31, 2021 and 2020, respectively:

December 31, 2021	Fair Value		Unfunded   Commitments		Redemption Frequency (if currently eligible)		Redemption   Notice Period
Common/collective trust funds	$	15,120		N/A		Daily		Daily

December 31, 2020	Fair Value		Unfunded   Commitments		Redemption Frequency (if currently eligible)		Redemption   Notice Period
Common/collective trust funds	$	15,257		N/A		Daily		Daily

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Pension Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

Expected benefit payments, which reflect expected future service, are as follows:

2022	$	246
2023		288
2024		327
2025		391
2026		491
2027 through 2031		3,100
Total	$	4,843

Supplemental Retirement Plan

Civista established a supplemental retirement plan (“SERP”) in 2013, which covers key members of management. Under the SERP, participants will receive annually, following retirement, a percentage of their base compensations at the time of their retirement for a maximum of ten years. The SERP liability recorded at December 31, 2021, was $3,334, compared to $3,097 at December 31, 2020. The expense related to the SERP was $404, $429 and $394 for 2021, 2020 and 2019, respectively. Distributions to participants made in 2021, 2020 and 2019 totaled $167, $168, and $128, respectively.

77

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 15 - EQUITY INCENTIVE PLAN

At the Company’s 2014 annual meeting, the shareholders adopted the Company’s 2014 Incentive Plan (“2014 Incentive Plan”). The 2014 Incentive Plan authorizes the Company to grant options, stock awards, stock units and other awards for up to 375,000 common shares of the Company. There were 154,123 shares available for grants under this plan at December 31, 2021.

No options had been granted under the 2014 Incentive Plan as of December 31, 2021 and 2020.

In recent years, the Board of Directors has awarded restricted common shares to senior officers of the Company. The restricted shares vest ratably over a three-year period following the grant date. The product of the number of restricted shares granted and the grant date market price of the Company’s common shares determines the fair value of restricted shares under the Company’s 2014 Incentive Plan. Management recognizes compensation expense for the fair value of restricted shares on a straight-line basis over the requisite service period for the entire award.

During the twelve months ended December 31, 2021, 2020 and 2019, directors of the Company’s banking subsidiary, Civista, were paid a retainer in the form of non-restricted common shares of the Company. The aggregate common shares of 8,792, 14,266 and 8,946, respectively were issued to Civista directors as payment of their retainer for their service on the Civista Board of Directors. The issuances were expensed in their entirety when the shares were issued in the amounts of $196, $196 and $196, respectively.

The Company includes share-based compensation for employees as “Compensation expense” in the Consolidated Statements of Operations.

The following is a summary of the status of the Company’s restricted shares, and changes therein during the twelve months ended December 31, 2021:

	December 31, 2021
	Number of Restricted Shares			Weighted Average   Grant Date   Fair Value
Nonvested at beginning of period		54,274		$	20.90
Granted		39,139			19.17
Vested		(20,275	)		20.35
Forfeited		(3,298	)		19.74
Nonvested at end of period		69,840			20.14

78

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 15 - EQUITY INCENTIVE PLAN (Continued)

The following is a summary of the status of the Company’s awarded restricted shares as of December 31, 2021:

At December 31, 2021
Date of Award	Shares		Remaining Expense		Remaining Vesting     Period (Years)
March 20, 2017		1,198	$	—		0.00
April 10, 2018		3,114		31		1.00
March 14, 2019		3,174		—		0.00
March 14, 2019		6,560		79		2.00
March 14, 2020		8,595		85		1.00
March 14, 2020		10,390		148		3.00
March 3, 2021		16,277		226		4.00
March 3, 2021		20,532		262		2.00
		69,840	$	831		2.30

During the twelve months ended December 31, 2021, 2020 and 2019, the Company recorded share-based compensation expense of $506, $421 and $335, respectively, and director retainer fees of $196, $196 and $196, respectively, for shares granted under the 2014 Incentive Plan. At December 31, 2021, the total compensation cost related to unvested awards not yet recognized was $831, which is expected to be recognized over the weighted average remaining life of the grants of 2.30 years.

NOTE 16 - FAIR VALUE MEASUREMENT

U.S. generally accepted accounting principles establish a hierarchal disclosure framework associated with the level of observable pricing utilized in measuring assets and liabilities at fair value. The three broad levels defined by the hierarchy are as follows: Level 1: Quoted prices for identical assets in active markets that are identifiable on the measurement date; Level 2: Significant other observable inputs, such as quoted prices for similar assets, quoted prices in markets that are not active and other inputs that are observable or can be corroborated by observable market data; Level 3: Significant unobservable inputs that reflect the Company’s own view about the assumptions that market participants would use in pricing an asset.

Securities: The fair values of securities available for sale are determined by matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs).

Equity securities: The Company has two types of equity securities, one is not actively traded in an open market, while the other is listed on an exchange and is less frequently traded. The fair value of the equity security available for sale not actively traded in an open market is determined by using market data inputs for similar securities that are observable. (Level 2 inputs).

Fair value swap asset/liability: The fair value of the swap asset and liability is based on an external derivative model using data inputs as of the valuation date and classified Level 2.

79

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 16 - FAIR VALUE MEASUREMENT (Continued)

Impaired loans: The Company generally measures impairment on impaired loans based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the properties. In some cases, management may adjust the appraised value due to the age of the appraisal, changes in market conditions, or observable deterioration of the property since the appraisal was completed. Additionally, management makes estimates about expected costs to sell the property which are also included in the net realizable value. If the fair value of the collateral dependent loan is less than the carrying amount of the loan, a specific reserve for the loan is made in the allowance for loan losses or a charge-off is taken to reduce the loan to the fair value of the collateral (less estimated selling costs) and the loan is included in the table below as a Level 3 measurement.

Mortgage servicing rights: Mortgage servicing rights do not trade in an active market with readily observable market data. As a result, the Company estimates the fair value of mortgage servicing rights by using a discounted cash flow model to calculate the present value of estimated future net servicing income. The Company stratifies its mortgage servicing portfolio on the basis of loan type. The assumptions used in the discounted cash flow model are those that the Company believes market participants would use in estimating future net servicing income. Significant assumptions in the valuation of mortgage servicing rights include estimated loan repayment rates, the discount rate, servicing costs, and the timing of cash flows, among other factors. Mortgage servicing rights are classified as Level 3 measurements due to the use of significant unobservable inputs, as well as significant management judgment and estimation.

Other real estate owned: OREO is carried at the lower of cost or fair value, which is measured at the date foreclosure. If the fair value of the collateral exceeds the carrying amount of the loan, no charge-off or adjustment is necessary, the loan is not considered to be carried at fair value, and is therefore not included in the table below. If the fair value of the collateral is less than the carrying amount of the loan, management will charge the loan down to its estimated realizable value. Management may adjust the appraised value due to the age of the appraisal, changes in market conditions, or observable deterioration of the property since the appraisal was completed. In these cases, the properties are categorized in the below table as Level 3 measurements since these adjustments are considered to be unobservable inputs. Income and expenses from operations are included in other operating expenses. Further declines in the fair value of the collateral subsequent to foreclosure are included in net gain on sale of other real estate owned.

Assets and liabilities measured at fair value are summarized below.

80

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 16 - FAIR VALUE MEASUREMENT (Continued)

Fair Value Measurements at December 31, 2021 using:

	(Level 1)		(Level 2)		(Level 3)
Assets measured at fair value on a recurring basis:
Securities available for sale
U.S. Treasury securities and obligations of U.S. Government agencies	$	—	$	47,890	$	—
Obligations of states and political subdivisions		—		298,836		—
Mortgage-backed securities in government sponsored entities		—		213,148		—
Total securities available for sale		—		559,874		—
Equity securities		—		1,072		—
Swap asset		—		11,072		—
Liabilities measured at fair value on a recurring basis:
Swap liability		—		11,072		—
Assets measured at fair value on a nonrecurring basis:
Impaired Loans	$	—	$	—	$	11
Mortgage servicing rights		—		—		2,642

Fair Value Measurements at December 31, 2020 using:

	(Level 1)		(Level 2)		(Level 3)
Assets measured at fair value on a recurring basis:
Securities available for sale
U.S. Treasury securities and obligations of U.S. Government agencies	$	—	$	21,693	$	—
Obligations of states and political subdivisions		—		229,012		—
Mortgage-backed securities in government sponsored entities		—		112,759		—
Total securities available for sale		—		363,464		—
Equity securities		—		886		—
Swap asset		—		21,700		—
Liabilities measured at fair value on a recurring basis:
Swap liability		—		21,764		—
Assets measured at fair value on a nonrecurring basis:
Impaired Loans	$	—	$	—	$	1
Mortgage servicing rights		—		—		2,246
Other Real Estate Owned		—		—		31

81

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 16 - FAIR VALUE MEASUREMENT (Continued)

The following tables presents quantitative information about the Level 3 significant unobservable inputs for assets and liabilities measured at fair value on a nonrecurring basis at December 31, 2021 and 2020.

	Quantitative Information about Level 3 Fair Value Measurements
December 31, 2021	Fair Value		Valuation Technique	Unobservable Input	Range	Weighted Average
Impaired loans	$	11	Appraisal of collateral	Appraisal adjustments	10%	10%
				Holding period	24 months	24 months
	Quantitative Information about Level 3 Fair Value Measurements
December 31, 2020	Fair Value		Valuation Technique	Unobservable Input	Range	Weighted Average
Impaired loans	$	1	Appraisal of collateral	Appraisal adjustments	0% - 30%	19%
				Holding period	23 months	23 months
Other real estate owned	$	31	Appraisal of collateral	Appraisal adjustments	10%	10%

The carrying amount and fair value of financial instruments carried at amortized cost were as follows:

December 31, 2021	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from financial institutions	$	265,969	$	265,969	$	265,969		$        —	$	—
Other securities		17,011		17,011		17,011		—		—
Loans, held for sale		1,972		2,011		2,011		—		—
Loans, net of allowance for loan losses		1,971,238		1,945,638		—		—		1,945,638
Bank owned life insurance		47,176		47,176		47,176		—		—
Accrued interest receivable		7,385		7,385		7,385		—		—
Financial Liabilities:
Nonmaturing deposits		2,170,253		2,170,253		2,170,253		—		—
Time deposits		246,448		247,053		—		—		247,053
Long-term FHLB advances		75,000		75,930		—		—		75,930
Securities sold under agreement to repurchase		25,495		25,495		25,495		—		—
Subordinated debentures		102,813		111,118		—		—		111,118
Accrued interest payable		315		315		315		—		—

82

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 16 - FAIR VALUE MEASUREMENT (Continued)

December 31, 2020	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from financial institutions	$	139,522	$	139,522	$	139,522	$	—	$	—
Other securities		20,537		20,537		20,537		—		—
Loans, held for sale		7,001		7,141		7,141		—		—
Loans, net of allowance for loan losses		2,032,474		2,063,249		—		—		2,063,249
Bank owned life insurance		46,976		45,976		45,976		—		—
Accrued interest receivable		9,421		9,421		9,421		—		—
Financial Liabilities:
Nonmaturing deposits		1,902,560		1,902,560		1,902,560		—		—
Time deposits		286,838		288,298		—		—		288,298
Long-term FHLB advances		125,000		130,942		—		—		130,942
Securities sold under agreement to repurchase		28,914		28,914		28,914		—		—
Subordinated debentures		29,427		31,479		—		—		31,479
Accrued interest payable		204		204		204		—		—

NOTE 17 - COMMITMENTS, CONTINGENCIES AND OFF-BALANCE-SHEET RISK

Some financial instruments, such as loan commitments, credit lines, letters of credit, and overdraft protection are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Off-balance-sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment.

The contractual amount of financial instruments with off-balance-sheet risk was as follows at year-end.

	2021				2020
	Fixed Rate		Variable Rate		Fixed Rate		Variable Rate
Commitments to extend credit:
Lines of credit and construction loans	$	33,542	$	455,777	$	38,474	$	427,864
Overdraft protection		7		54,034		6		41,707
Letters of credit		615		731		615		986
	$	34,164	$	510,542	$	39,095	$	470,557

Commitments to make loans are generally made for a period of one year or less. Fixed-rate loan commitments included above had interest rates ranging from 3.25% to 8.00% at December 31, 2021 and 3.50% to 8.00% at December 31, 2020. Maturities extend up to 30 years.

Civista is required to maintain certain reserve balances on hand in accordance with the Federal Reserve Board requirements. The average reserve balance maintained in accordance with such requirements was $0 on December 31, 2021 and December 31, 2020, respectively.

83

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 17 - COMMITMENTS, CONTINGENCIES AND OFF-BALANCE-SHEET RISK (Continued)

CBI and Civista are parties to various claims and proceedings arising in the normal course of business. Management, after consultation with legal counsel, believes that the liabilities, if any, arising from such proceedings and claims will not be material to the consolidated balance sheet or results of operations.

NOTE 18 - CAPITAL REQUIREMENTS AND RESTRICTION ON RETAINED EARNINGS

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, 2021, that the Companies met all capital adequacy requirements to which they were subject.

As of December 31, 2021, and 2020, 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 the Companies 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 the institution’s category.

84

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 18 - CAPITAL REQUIREMENTS AND RESTRICTION ON RETAINED EARNINGS (Continued)

The Company’s and Civista’s actual capital levels and minimum required capital levels at December 31, 2021 and 2020 were as follows:

	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Purposes
	Amount		Ratio			Amount		Ratio			Amount		Ratio
2021
Total Risk Based Capital
Consolidated	$	394,164		19.2	%	$	164,498		8.0	%		n/a		n/a
Civista		338,383		16.5			164,483		8.0		$	205,604		10.0	%
Tier I Risk Based Capital
Consolidated		295,064		14.3			123,373		6.0			n/a		n/a
Civista		312,671		15.2			123,362		6.0			164,483		8.0
CET1 Risk Based Capital
Consolidated		265,637		12.9			92,530		4.5			n/a		n/a
Civista		312,671		15.2			92,522		4.5			133,642		6.5
Leverage
Consolidated		295,064		10.2			115,543		4.0			n/a		n/a
Civista		312,671		10.8			115,408		4.0			144,260		5.0
2020
Total Risk Based Capital
Consolidated	$	307,504		16.0	%	$	153,810		8.0	%		n/a		n/a
Civista		277,429		14.4			153,765		8.0		$	192,206		10.0	%
Tier I Risk Based Capital
Consolidated		283,459		14.7			115,358		6.0			n/a		n/a
Civista		252,304		13.1			115,323		6.0			153,765		8.0
CET1 Risk Based Capital
Consolidated		254,032		13.2			86,518		4.5			n/a		n/a
Civista		241,891		12.6			86,493		4.5			124,934		6.5
Leverage
Consolidated		283,459		10.8			105,279		4.0			n/a		n/a
Civista		252,304		9.6			105,029		4.0			131,286		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 requirements. At December 31, 2021, Civista had $59,772 of net profits available to pay dividends to CBI without requiring regulatory approval.

85

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 19 - PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION

Condensed financial information of CBI follows:

	December 31,
Condensed Balance Sheets	2021			2020
Assets:
Cash	$	45,800		$	19,446
Equity securities		1,072			886
Investment in bank subsidiary		408,255			344,948
Investment in nonbank subsidiaries		3,474			16,017
Other assets		2,016			1,575
Total assets	$	460,617		$	382,872
Liabilities:
Deferred income taxes and other liabilities	$	2,592		$	3,337
Subordinated debentures		102,813			29,427
Total liabilities		105,405			32,764
Shareholders’ Equity:
Common stock		277,741			277,039
Accumulated earnings		125,558			93,048
Treasury Stock		(56,907	)		(34,598	)
Accumulated other comprehensive income		8,820			14,619
Total shareholders’ equity		355,212			350,108
Total liabilities and shareholders’ equity	$	460,617		$	382,872

	For the years ended December 31,
Condensed Statements of Operations	2021			2020			2019
Dividends from bank subsidiaries	$	19,900		$	15,300		$	13,300
Dividends from non-bank subsidiaries		1,000			440			—
Interest expense		(956	)		(945	)		(1,423	)
Pension expense		(47	)		(25	)		176
Other expense, net		(1,004	)		(1,241	)		(1,107	)
Income (loss) before equity in undistributed net earnings of subsidiaries		18,893			13,529			10,946
Income tax benefit		425			475			494
Equity in undistributed net earnings of subsidiaries		21,228			18,188			22,438
Net income	$	40,546		$	32,192		$	33,878
Comprehensive income	$	34,747		$	39,937		$	42,204

86

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 19 - PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION (Continued)

	For the years ended December 31,
Condensed Statements of Cash Flows	2021			2020			2019
Operating activities:
Net income	$	40,546		$	32,192		$	33,878
Adjustment to reconcile net income to net cash from operating activities:
Change in other assets and other liabilities		2,495			1,925			4,437
Equity in undistributed net earnings of subsidiaries		(21,228	)		(18,188	)		(22,438	)
Net cash from (used for) operating activities		21,813			15,929			15,877
Investing activities:
Disposal of minority interest		11,500			—			—
Disposal of investment in subsidiary		—			—			41
Acquisition and additional capitalization of subsidiary, net of cash acquired		(50,000	)		—			—
Net cash from (used for) investing activities		(38,500	)		—			41
Financing activities:
Cash paid on fractional shares on preferred stock conversion to common stock		—			—			(2	)
Proceeds from subordinated debenture, net of issuance costs		73,386			—			—
Purchase of treasury stock		(22,309	)		(13,454	)		(3,909	)
Payment to repurchase series B preferred stock		—			—			(402	)
Cash dividends paid		(8,036	)		(7,118	)		(7,194	)
Net cash used for financing activities		43,041			(20,572	)		(11,507	)
Net change in cash and cash equivalents		26,354			(4,643	)		4,411
Cash and cash equivalents at beginning of year		19,446			24,089			19,678
Cash and cash equivalents at end of year	$	45,800		$	19,446		$	24,089

NOTE 20 - PREFERRED SHARES

On December 19, 2013, the Company completed the sale of 1,000,000 depositary shares, each representing a 1/40th ownership interest in a 6.50% Noncumulative Redeemable Convertible Perpetual Preferred Share, Series B, of the Company, with a liquidation preference of $1,000 per share (equivalent to $25.00 per depositary share). The Company sold the maximum of 1,000,000 depositary shares in the offering, resulting in gross proceeds to the Company of $25,000.

Using proceeds from the sale of the depositary shares, the Company redeemed all of its outstanding Series A Preferred Shares for an aggregate purchase price of $22,857, which redemption was completed as of February 15, 2014.

All outstanding depositary shares were redeemed or converted into common shares by December 20, 2019.

87

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 21 - EARNINGS PER COMMON SHARE

The factors used in the earnings per share computation follow.

	2021		2020		2019
Basic
Net income	$	40,546	$	32,192	$	33,878
Preferred stock dividends		—		—		647
Less allocation of earnings and dividends to participating securities		173		98		87
Net income available to common shareholders—basic	$	40,373	$	32,094	$	33,144
Weighted average common shares outstanding		15,408,863		16,129,875		15,652,881
Less average participating securities		65,648		49,012		40,013
Weighted average number of shares outstanding used in the calculation of basic earnings per common share		15,343,215		16,080,863		15,612,868
Basic earnings per share	$	2.63	$	2.00	$	2.12
Diluted
Net income available to common shareholders—basic	$	40,373	$	32,094	$	33,144
Preferred stock dividends on convertible preferred stock		—		—		647
Net income available to common shareholders—diluted	$	40,373	$	32,094	$	33,791
Weighted average common shares outstanding used in the calculation of earnings per common share basic		15,343,215		16,080,863		15,612,868
Add: dilutive effects of convertible preferred shares		—		—		1,198,859
Average shares and dilutive potential common shares outstanding—diluted		15,343,215		16,080,863		16,851,740
Diluted earnings per share	$	2.63	$	2.00	$	2.01

The presentation for earnings per common share for prior periods was revised to present under the two-class method. Earnings per common share for prior periods was not impacted.

Basic earnings per common share are calculated by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share include the dilutive effect, if any, of additional potential common shares issuable under the equity incentive plan, computed using the treasury stock method, and the impact of the Company’s convertible preferred shares using the “if converted” method.

88

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 22 - DERIVATIVES

To accommodate customer need and to support the Company’s asset/liability positioning, on occasion we enter into interest rate swaps with a customer and a bank counterparty. The interest rate swaps are free-standing derivatives and are recorded at fair value. The Company enters into a floating rate loan and a fixed rate swap with our customer. Simultaneously, the Company enters into an offsetting fixed rate swap with a bank counterparty. In connection with each swap transaction, the Company agrees to pay interest to the customer on a notional amount at a variable interest rate and receive interest from the customer on the same notional amount at a fixed interest rate. At the same time, the Company agrees to pay a bank counterparty the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. These transactions allow the Company’s customer to effectively convert variable rate loans to fixed rate loans. Since the Company acts as an intermediary for its customer, changes in the fair value of the underlying derivative contracts offset each other and do not significantly impact the Company’s results of operations unless a significant difference in credit risk emerges between the counterparties at either end of one of the swap contracts. None of the Company’s derivatives are designated as hedging instruments.

The Company presents derivative positions gross on the balance sheet for customers and net for financial institution counterparty positions subject to master netting arrangements. The following table reflects the derivatives recorded on the balance sheet as of December 31:

	2021					2020
	Notional Amount		Fair Value			Notional Amount		Fair Value
Included in other assets:
Interest rate swaps with loan customers in an asset position	$	173,490	$	11,072		$	244,748	$	21,700
Total included in other assets			$	11,072				$	21,700
Included in accrued expenses and other liabilities:
Interest rate swaps with loan customers in a liability position	$	71,328	$	1,628		$	—	$	—
Counterparty positions with financial institutions in an asset position		71,328		(1,628	)		—		—
Counterparty positions with financial institutions in a liability position		173,490		11,072			244,748		21,764
Total included in accrued expenses and other liabilities			$	11,072				$	21,764
Gross notional positions with customers	$	244,818				$	244,748
Gross notional positions with financial institution counterparties	$	244,818				$	244,748

89

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 22 - DERIVATIVES HEDGING INSTRUMENTS (Continued)

The effect of swap fair value changes on the Consolidated Statement of Operations for the years ended December 31, 2021, 2020 and 2019 are as follows:

Derivatives Not Designated	Location of Gain or (Loss) Recognized in	Amount of Gain or (Loss) Recognized in Income on Derivatives
as Hedging Instruments	Income on Derivative	2021		2020		2019
Interest rate swaps related to customer loans	Other income		$                64		$                (64)		$                —
Total			$                64		$                (64)		$                —

The Company monitors and controls all derivative products with a comprehensive Board of Director approved commercial loan swap policy. All hedge transactions must be approved in advance by the Lenders Loan Committee or the Directors Loan Committee of the Board of Directors. The Company classifies changes in the fair value of derivatives with “Other” in the Consolidated Statements of Operation. Any fees paid to enter the swap contract at inception are recognized in earnings when received. Such fees amounted to $207 and $1,459 during the years ended December 31, 2021 and 2020, respectively.

At December 31, 2021, the Company had cash and securities at fair value pledged for collateral on its interest rate swaps with third party financial institutions of $10,780 and $509, respectively. At December 31, 2020, the Company had cash and securities at fair value pledged for collateral on its interest rate swaps with third party financial institutions of $11,300 and $11,705, respectively.

NOTE 23 – QUALIFIED AFFORDABLE HOUSING PROJECT INVESTMENTS

The Company invests in qualified affordable housing projects. At December 31, 2021 and 2020, the balance of the Company’s investments in qualified affordable housing projects was $13,093 and $11,911, respectively. These balances are reflected in the other assets line on the Consolidated Balance Sheet. The unfunded commitments related to the investments in qualified affordable housing projects totaled $5,706 and $5,944 at December 31, 2021 and 2020, respectively. These balances are reflected in the Accrued expenses and other liabilities line on the Consolidated Balance Sheet. Other assets and Accrued expenses and other liabilities were revised at December 31, 2020 to reflect the unfunded commitment of $5,944.

During the years ended December 31, 2021, 2020 and 2019, the Company recognized amortization expense with respect to its investments in qualified affordable housing projects of $818, $661 and $570, respectively, which was included within pre-tax income on the Consolidated Statements of Operations.

Additionally, during the years ended December 31, 2021, 2020 and 2019, the Company recognized tax credits and other benefits from its investments in affordable housing tax credits of $1,402, $1,186 and $995, respectively. During the years ended December 31, 2021, 2020 and 2019, the Company did not incur impairment losses related to its investment in qualified affordable housing projects.

90

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 24 – REVENUE RECOGNITION

The Company accounts for revenues from contracts with customers under ASC 606, Revenue from Contracts with Customers. Revenue associated with financial instruments, including revenue from loans and securities are outside the scope of the new standard and accounted for under existing GAAP. In addition, certain noninterest income streams such as fees associated with mortgage servicing rights, financial guarantees, derivatives and certain credit card fees are also not in scope of the new guidance. Noninterest revenue streams in-scope of ASC 606 are discussed below.

Service Charges

Service charges consist of account analysis fees (i.e., net fees earned on analyzed business and public checking accounts), monthly service fees, and other deposit account related fees. The Company’s performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Other deposit account related fees are largely transactional based, and therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts.

ATM/Interchange Fees

Fees, exchange, and other service charges are primarily comprised of debit and credit card income, ATM fees and other service charges. Debit and credit card income is primarily comprised of interchange fees earned whenever the Company’s debit and credit cards are processed through card payment networks such as Mastercard. ATM fees are primarily generated when a Company cardholder uses a non-Company ATM or a non-Company cardholder uses a Company ATM. The Company’s performance obligation for fees, exchange, and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month.

Wealth Management Fees

Wealth management fees are primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Company’s performance obligation is generally satisfied over time and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and the applicable fee rate. Payment is generally received in the following month through a direct charge to customers’ accounts. The Company does not earn performance-based incentives. The Company’s performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, at a point in time (i.e., as incurred). Payment is received shortly after services are rendered.

Tax Refund Processing Fees

The Company facilitates the payment of federal and state income tax refunds in partnership with a third-party vendor. Refund Transfers (“RTs”) are fee-based products whereby a tax refund is issued to the taxpayer after the Company has received the refund from the federal or state government. As part of this agreement the Company earns fee income, the majority of which is received in the first quarter of the year. The Company’s fee income revenue is recognized based on the estimated percent of business completed by each date.

91

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 24 – REVENUE RECOGNITION (Continued)

Other

Other noninterest income consists of other recurring revenue streams such as check order fees, wire transfer fees, safety deposit box rental fees, item processing fees and other miscellaneous revenue streams. Check order income mainly represents fees charged to customers for checks. Wire transfer fees represent revenue from processing wire transfers. Safe deposit box rental fees are charged to the customer on an annual basis and recognized upon receipt of payment. The Company determined that since rentals and renewals occur fairly consistently over time, revenue is recognized on a basis consistent with the duration of the performance obligation. Item processing fee income represents fees charged to other financial institutions for processing their transactions. Payment is typically received in the following month.

The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the years ended December 31, 2021, 2020 and 2019.

		For the years ended December 31,
		2021		2020		2019
Noninterest Income
In-scope of Topic 606:
Service charges	$	5,905	$	5,288	$	6,395
ATM/Interchange fees		5,443		4,472		4,056
Wealth management fees		4,857		3,981		3,670
Tax refund processing fees		2,375		2,375		2,750
Other		1,055		831		911
Noninterest Income (in-scope of Topic 606)		19,635		16,947		17,782
Noninterest Income (out-of-scope of Topic 606)		11,817		11,235		4,661
Total Noninterest Income	$	31,452	$	28,182	$	22,443

NOTE 25 - LEASES

We have operating leases for several branch locations and office space. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. We also lease certain office equipment under operating leases. Many of our leases include both lease (e.g., minimum rent payments) and non-lease (e.g., common-area or other maintenance costs) components. The Company accounts for each component separately based on the standalone price of each component. In addition, we have several operating leases with lease terms of less than one year and therefore, we have elected the practical expedient to exclude these short-term leases from our right-of-use (ROU) assets and lease liabilities.

Most leases include one or more options to renew. The exercise of lease renewal options is typically at our sole discretion. The majority of renewals to extend the lease terms are included in our ROU assets and lease liabilities as they are reasonably certain of exercise.

92

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 25 - LEASES (Continued)

As most of our leases do not provide an implicit rate, we use the fully collateralized FHLB borrowing rate, commensurate with the lease terms based on the information available at the lease commencement date in determining the present value of the lease payments.

The balance sheet information related to our operating leases were as follows as of December 31, 2021 and 2020:

	Classification on the Consolidated Balance Sheet	December 31, 2021		December 31, 2020
Assets:
Operating lease	Other assets	$	2,314	$	2,678
Liabilities:
Operating lease	Accrued expenses and other liabilities	$	2,314	$	2,678

The cost components of our operating leases were as follows for the periods ended December 31, 2021 and 2020:

	December 31, 2021			December 31, 2020
Lease cost
Operating lease cost	$	427		$	499
Short-term lease cost		161			304
Sublease income		(29	)		(26	)
Total lease cost	$	559		$	777

Maturities of our lease liabilities for all operating leases for each of the next five years and thereafter is as follows:

2022	$	420
2023		414
2024		406
2025		308
2026		258
Thereafter		728
Total lease payments	$	2,534
Less: Imputed Interest		220
Present value of lease liabilities	$	2,314

The weighted average remaining lease terms and discount rates for all of our operating leases were as follows as of December 31, 2021:

Weighted-average remaining lease term - operating leases (years)	5.60
Weighted-average discount rate - operating leases	2.82	%

93

CIVISTA BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2021, 2020 and 2019

(Amounts in thousands, except share data)

NOTE 26 - SUBSEQUENT EVENTS

On January 10, 2022, CBI and Comunibanc Corp. (“Comunibanc”), the parent company of The Henry County Bank entered into an Agreement and Plan of Merger (the “Merger Agreement”), pursuant to which CBI will acquire Comunibanc and its wholly-owned subsidiary, The Henry County Bank. It is anticipated that The Henry County Bank will be merged with and into Civista, upon completion of the transaction. At that time, The Henry County Bank’s seven banking offices located in Northwestern Ohio, will become offices of Civista. As of September 30, 2021, Comunibanc and The Henry County Bank had total consolidated assets of $329 million, total loans of $165 million and total deposits of $276 million.

Under the terms of the Merger Agreement, for each share of Comunibanc common stock issued and outstanding, Comunibanc shareholders have the right to receive 1.1888 CBI common shares and $30.13 in cash. This implies a deal value of approximately $50.2 million in the aggregate or $60.59 per Comunibanc share based on the closing price of Civista’s common stock on January 7, 2022 of $25.62.

The merger is anticipated to be completed during the second quarter of 2022, and is subject to the satisfaction of the closing conditions in the Merger Agreement and the approval of the appropriate regulatory authorities and of the shareholders of Comunibanc.

94

EX-21.1

Exhibit 21.1

SUBSIDIARIES OF REGISTRANT

Subsidiary	Jurisdiction of Organization
Civista Bank	Ohio
First Citizens Insurance Agency, Inc.	Ohio
Water Street Properties, Inc.	Ohio
First Citizens Investments, Inc.	Delaware
CIVB Risk Management, Inc.	Delaware
First Citizens Statutory Trust II	Connecticut
First Citizens Statutory Trust III	Delaware
First Citizens Statutory Trust IV	Delaware
Futura TPF Trust I	Delaware
Futura TPF Trust II	Delaware

EX-23.1

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors of Civista Bancshares, Inc.

We consent to the incorporation by reference in Registration Statements File No. 333-202316 on Form S-8, File No. 333-260273 on Form S-3 and File No. 333-262907 on Form S-4 of Civista Bancshares, Inc. of our report dated March 15, 2022, relating to our audit of the consolidated financial statements and internal control over financial reporting, which appears in the Annual Report to Shareholders, which is incorporated by reference in this Annual Report on Form 10-K of Civista Bancshares, Inc. for the year ended December 31, 2021.

/s/ BKD, LLP

Cincinnati, Ohio

March 15, 2022

EX-23.2

Exhibit 23.2

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in Registration Statements File No. 333-202316 on Form S-8 and File No. 333-227006 on Form S-3 of Civista Bancshares, Inc. of our report dated March 15, 2021, relating to our audit of the consolidated financial statements and internal control over financial reporting, which appears in the Annual Report to Shareholders, which is incorporated in this Annual Report on Form 10-K of Civista Bancshares, Inc. for the year ended December 31, 2021.

/s/S.R. Snodgrass, PC

Cranberry Township, Pennsylvania

March 15, 2022

EX-31.1

Exhibit 31.1

Certification of Principal Executive Officer

CERTIFICATIONS FOR ANNUAL REPORT ON FORM 10-K

I, Dennis G. Shaffer, certify that:

1. I have reviewed this Annual Report on Form 10-K of Civista Bancshares, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Signature and Title: /s/ Dennis G. Shaffer, President, CEO             Date: March 15, 2022

EX-31.2

Exhibit 31.2

Certification of Principal Financial Officer

CERTIFICATIONS FOR ANNUAL REPORT ON FORM 10-K

I, Todd A. Michel, certify that:

1. I have reviewed this Annual Report on Form 10-K of Civista Bancshares, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Signature and Title: /s/ Todd A. Michel, Senior Vice President, Controller             Date: March 15, 2022

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Civista Bancshares, Inc. (the “Company”) on Form 10-K for the period ending December 31, 2021, as filed with the Securities and Exchange Commission on the date of this certification (the Report), I, Dennis G. Shaffer, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Dennis G. Shaffer

Dennis G. Shaffer

Chief Executive Officer

March 15, 2022

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Civista Bancshares, Inc. (the “Company”) on Form 10-K for the period ending December 31, 2021, as filed with the Securities and Exchange Commission on the date of this certification (the Report), I, Todd A. Michel, Senior Vice President and Controller of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Todd A. Michel

Todd A. Michel

Senior Vice President, Controller

March 15, 2022

XML

Cover Page - USD ($)

12 Months Ended

Dec. 31, 2021

Feb. 24, 2022

Jun. 30, 2021

Cover [Abstract]

Document Type

10-K

Amendment Flag

false

Document Period End Date

Dec. 31, 2021

Document Fiscal Year Focus

2021

Document Fiscal Period Focus

FY

Trading Symbol

CIVB

Entity Registrant Name

Civista Bancshares, Inc.

Entity Central Index Key

0000944745

Current Fiscal Year End Date

--12-31

Entity Well-known Seasoned Issuer

No

Entity Current Reporting Status

Yes

Entity Voluntary Filers

No

Entity Filer Category

Accelerated Filer

Entity Small Business

false

Entity Emerging Growth Company

false

Entity Shell Company

false

ICFR Auditor Attestation Flag

true

Entity Incorporation, State or Country Code

OH

Entity File Number

001-36192

Entity Tax Identification Number

34-1558688

Entity Address, Address Line One

100 East Water Street

Entity Address, City or Town

Sandusky

Entity Address, State or Province

OH

Entity Address, Postal Zip Code

44870

City Area Code

419

Local Phone Number

625 - 4121

Document Annual Report

true

Document Transition Report

false

Entity Interactive Data Current

Yes

Title of 12(b) Security

Common shares, no par value

Security Exchange Name

NASDAQ

Documents Incorporated by Reference

Portions of the registrant’s Annual Report to Shareholders for the fiscal year ended December 31, 2021 (the “2021 Annual Report”) are incorporated by reference into Parts I and II of this Form 10-K. Portions of the registrant’s Proxy Statement for the registrant’s 2022 Annual Meeting of Shareholders to be held on April 19, 2022 (the “2022 Proxy Statement”) are incorporated by reference into Part III of this Form 10-K.

Entity Common Stock, Shares Outstanding

14,888,915

Entity Public Float

$ 323,533,981

Auditor Name

BKD, LLP

Auditor Firm ID

686

Auditor Location

United States

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
ASSETS
Cash and due from financial institutions	$ 253,459	$ 125,749
Restricted cash	10,780	11,300
Cash and cash equivalents	264,239	137,049
Investments in time deposits	1,730	2,473
Securities available for sale	559,874	363,464
Equity securities	1,072	886
Loans held for sale	1,972	7,001
Loans, net of allowance of $26,641 and $25,028	1,971,238	2,032,474
Other securities	17,011	20,537
Premises and equipment, net	22,445	22,580
Accrued interest receivable	7,385	9,421
Goodwill	76,851	76,851
Other intangible assets	7,581	8,075
Bank owned life insurance	46,641	45,976
Swap assets	11,072	21,700
Other assets	22,872	20,375
Total assets	3,011,983	2,768,862
Deposits
Noninterest-bearing	788,906	720,809
Interest-bearing	1,627,795	1,468,589
Total deposits	2,416,701	2,189,398
Long-term Federal Home Loan Bank advances	75,000	125,000
Securities sold under agreements to repurchase	25,495	28,914
Subordinated debentures	102,813	29,427
Swap liabilities	11,072	21,764
Accrued expenses and other liabilities	25,690	24,251
Total liabilities	2,656,771	2,418,754
SHAREHOLDERS' EQUITY
Common stock, no par value, 40,000,000 shares authorized, 17,709,584 shares issued at December 31, 2021 and 17,664,951 shares issued at December 31, 2020	277,741	277,039
Accumulated earnings	125,558	93,048
Treasury stock, 2,755,384 common shares at December 31, 2021 and 1,766,919 common shares at December 31, 2020, at cost	(56,907)	(34,598)
Accumulated other comprehensive income	8,820	14,619
Total shareholders' equity	355,212	350,108
Total liabilities and shareholders' equity	$ 3,011,983	$ 2,768,862

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Allowance for loan losses	$ 26,641	$ 25,028
Common stock, no par value	$ 0	$ 0
Common stock, shares authorized	40,000,000	40,000,000
Common stock, shares issued	17,709,584	17,664,951
Treasury stock, common shares	2,755,384	1,766,919

XML

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Interest and dividend income
Loans, including fees	$ 89,570	$ 87,777	$ 84,972
Taxable securities	5,473	5,359	6,584
Tax-exempt securities	6,250	6,123	5,647
Federal funds sold and other	449	606	851
Total interest and dividend income	101,742	99,865	98,054
Interest expense
Deposits	4,175	6,881	8,057
Federal Home Loan Bank advances	1,163	1,932	3,452
Subordinated debentures	955	945	1,423
Securities sold under agreements to repurchase and other	24	380	22
Total interest expense	6,317	10,138	12,954
Net interest income	95,425	89,727	85,100
Provision for loan losses	830	10,112	1,035
Net interest income after provision for loan losses	94,595	79,615	84,065
Noninterest income
Service charges	5,905	5,288	6,395
Net gain on sale of securities	1,786	94	32
Net gain (loss) on equity securities	186	(57)	121
Net gain on sale of loans	8,042	8,563	2,707
ATM/Interchange fees	5,443	4,472	4,056
Wealth management fees	4,857	3,981	3,670
Bank owned life insurance	1,200	977	1,007
Tax refund processing fees	2,375	2,375	2,750
Computer center item processing fees	175	252	273
Swap fees	207	1,459	516
Other	1,276	778	916
Total Noninterest Income	31,452	28,182	22,443
Noninterest expense
Compensation expense	44,690	42,480	39,156
Net occupancy expense	4,213	4,079	3,835
Equipment expense	1,838	2,006	2,246
Contracted data processing	1,725	1,880	1,831
FDIC Assessment	1,056	728	138
State franchise tax	2,184	1,913	1,843
Professional services	2,715	2,795	2,844
Amortization of intangible assets	890	913	945
ATM/Interchange expense	2,314	1,868	1,887
Marketing expense	1,103	1,074	1,411
Software maintenance expenses	2,755	1,833	1,523
Other operating expenses	13,001	9,096	9,288
Total noninterest expense	78,484	70,665	66,947
Income before income taxes	47,563	37,132	39,561
Income taxes	7,017	4,940	5,683
Net income	40,546	32,192	33,878
Preferred stock dividends	0	0	647
Net income available to common shareholders	$ 40,546	$ 32,192	$ 33,231
Earnings per common share, basic	$ 2.63	$ 2.00	$ 2.12
Earnings per common share, diluted	$ 2.63	$ 2.00	$ 2.01

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 40,546	$ 32,192	$ 33,878
Other comprehensive income (loss):
Unrealized holding gains (loss) on available for sale securities	(8,570)	10,935	13,368
Tax effect	1,799	(2,297)	(2,807)
Reclassification of gains recognized in net income	(1)	(94)	(32)
Tax effect		20	7
Pension liability adjustment	992	(1,326)	(2,953)
Tax effect	(209)	279	620
Reclassification of actuatial gain (loss) recognized in net income	240	289	156
Tax effect	(50)	(61)	(33)
Total other comprehensive income (loss)	(5,799)	7,745	8,326
Comprehensive income	$ 34,747	$ 39,937	$ 42,204

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Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands	Total	Preferred Shares [Member]	Common Shares [Member]	Accumulated Earnings [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Beginning balance at Dec. 31, 2018	$ 298,898	$ 9,364	$ 266,901	$ 41,320	$ (17,235)	$ (1,452)
Beginning balance, shares at Dec. 31, 2018		10,120	15,603,499
Net income	33,878			33,878
Other comprehensive income (loss)	8,326					8,326
Conversion of Series B preferred shares to common shares	(404)	$ (9,364)	$ 8,990	(30)
Conversion of Series B preferred shares to common shares, shares		(10,120)	1,242,683
Stock-based compensation	531		$ 531
Stock-based compensation, shares			29,560
Common share dividends	(6,547)			(6,547)
Preferred share dividends ($65.00 per share)	(647)			(647)
Repurchase of common stock	(3,909)				(3,909)
Repurchase of common stock, shares			(188,200)
Ending balance at Dec. 31, 2019	330,126		$ 276,422	67,974	(21,144)	6,874
Ending balance, shares at Dec. 31, 2019			16,687,542
Net income	32,192			32,192
Other comprehensive income (loss)	7,745					7,745
Stock-based compensation	617		$ 617
Stock-based compensation, shares			41,245
Common share dividends	(7,118)			(7,118)
Repurchase of common stock	(13,454)				(13,454)
Repurchase of common stock, shares			(830,755)
Ending balance at Dec. 31, 2020	350,108		$ 277,039	93,048	(34,598)	14,619
Ending balance, shares at Dec. 31, 2020			15,898,032
Net income	40,546			40,546
Other comprehensive income (loss)	(5,799)					(5,799)
Stock-based compensation	702		$ 702
Stock-based compensation, shares			44,633
Common share dividends	(8,036)			(8,036)
Repurchase of common stock	(22,309)				(22,309)
Repurchase of common stock, shares			(988,465)
Ending balance at Dec. 31, 2021	$ 355,212		$ 277,741	$ 125,558	$ (56,907)	$ 8,820
Ending balance, shares at Dec. 31, 2021			14,954,200

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Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - Accumulated Earnings [Member] - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Common stock dividends per share	$ 0.52	$ 0.44	$ 0.42
Preferred stock dividends per share			$ 65.00

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash flows from operating activities:
Net income	$ 40,546	$ 32,192	$ 33,878
Adjustments to reconcile net income to net cash from operating activities
Time deposits amortization	8	2
Security amortization, net	1,376	1,119	1,185
Depreciation	1,976	2,253	2,240
Amortization of core deposit intangible	890	913	945
Amortization of net deferred loan fees	(10,738)	(5,066)	(626)
Net gain on sale of securities	(1,786)	(94)	(32)
Net (gain) loss on equity securities	(186)	57	(121)
Provision for loan losses	830	10,112	1,035
Loans originated for sale	(255,265)	(308,742)	(126,690)
Proceeds from sale of loans	268,336	312,589	128,503
Net gain on sale of loans	(8,042)	(8,563)	(2,707)
Increase in cash surrender value of bank owned life insurance	(1,200)	(977)	(1,007)
Share-based compensation	702	617	531
Deferred taxes	1,319	(2,277)	663
Change in Accrued interest payable	111	(73)	47
Accrued interest receivable	2,036	(2,328)	(370)
Other, net	(152)	920	1,327
Net cash from operating activities	40,761	32,654	38,801
Cash flows used for investing activities:
Maturities	980	735
Purchases	(245)	(1,250)	(980)
Maturities, prepayments and calls of securities, available for sale	61,927	58,246	54,055
Sales of securities, available for sale	1,810	1,455	17,570
Purchases of securities, available for sale	(268,309)	(54,850)	(71,646)
Purchases of other securities		(257)
Redemption of other securities	3,526		741
Redemption of equity securities		247
Purchases of bank owned life insurance			(955)
Proceeds from bank owned life insurance	535
Net change in loans	71,072	(343,348)	(146,350)
Proceeds from sale of OREO properties	122
Premises and equipment purchases	(1,927)	(1,972)	(3,201)
Disposal of premises and equipment	13	12	2
Net cash used for investing activities	(130,496)	(340,982)	(150,764)
Cash flows from financing activities:
Increase in deposits	227,303	510,634	98,871
Net change in short-term FHLB advances		(101,500)	(87,100)
Repayment of long-term FHLB advances	(50,000)		(5,000)
Proceeds from long-term FHLB advances			125,000
Repayment of other borrowings		(183,695)
Proceeds from other borrowings		183,695
Proceeds from subordinated debentures	73,386
Increase (decrease) in securities sold under repurchase agreements	(3,419)	10,240	(3,525)
Cash payment for redemption of series B preferred stock			(402)
Repurchase of common stock	(22,309)	(13,454)	(3,909)
Cash paid on fractional shares on preferred stock conversion			(2)
Cash dividends paid	(8,036)	(7,118)	(7,194)
Net cash from financing activities	216,925	398,802	116,739
Increase in cash and due from financial institutions	127,190	90,474	4,776
Cash and cash equivalents at beginning of year	137,049	46,575	41,799
Cash and cash equivalents at end of year	264,239	137,049	46,575
Supplemental disclosures of cash flow information:
Interest paid	6,206	10,211	12,907
Income taxes paid	6,180	7,095	5,700
Transfer of loans from portfolio to other real estate owned	72	$ 31
Transfer of premises to held-for-sale			76
Securities purchased not settled	$ 3,524		1,200
Conversion of preferred stock to common stock			$ 8,960

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of the accounting policies adopted by Civista Bancshares, Inc., which have a significant effect on the Consolidated Financial Statements.

Nature of Operations and Principles of Consolidation: The Consolidated Financial Statements include the accounts of Civista Bancshares, Inc. (“CBI”) and its wholly-owned direct and indirect subsidiaries: Civista Bank (“Civista”), First Citizens Insurance Agency, Inc. (“FCIA”), Water Street Properties, Inc. (“WSP”), FC Refund Solutions, Inc. (“FCRS”), CIVB Risk Management, Inc. (“CRMI”), First Citizens Capital LLC (“FCC”) and First Citizens Investments, Inc. (“FCI”). The above companies together are sometimes referred to as the “Company”. Intercompany balances and transactions are eliminated in consolidation.

Civista provides financial services through its offices in the Ohio counties of Erie, Crawford, Champaign, Cuyahoga, Franklin, Logan, Summit, Huron, Ottawa, Madison, Montgomery and Richland, in the Indiana counties of Dearborn and Ripley and in the Kentucky county of Kenton. Its primary deposit products are checking, savings, and term certificate accounts, and its primary lending products are residential mortgage, commercial, and installment loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets and commercial and residential real estate. Commercial loans are expected to be repaid from cash flow from operations of businesses. There are no significant concentrations of loans to any one industry or customer. However, our customers’ ability to repay their loans is dependent on the real estate and general economic conditions in the area. Other financial instruments that potentially represent concentrations of credit risk include deposit accounts in other financial institutions.

FCIA was formed to allow the Company to participate in commission revenue generated through its third party insurance agreement. Insurance commission revenue was less than 1.0% of total revenue for each of the years ended December 31, 2021, 2020 and 2019. WSP was formed to hold repossessed assets of CBI’s subsidiaries. WSP revenue was less than 1% of total revenue for each of the years ended December 31, 2021, 2020 and 2019. FCRS was formed in 2012 to facilitate payment of individual state and federal tax refunds. The operations of FCRS were discontinued June 30, 2019. CRMI was formed in 2017 to provide property and casualty insurance coverage to CBI and its subsidiaries for which insurance may not be currently available or economically feasible in the insurance marketplace. CRMI revenue was less than 1% of total revenue for each of the years ended December 31, 2021, 2020 and 2019. FCC was formed as a wholly-owned subsidiary of Civista in Wilmington, Delaware to hold inter-company debt. The operations of FCC were discontinued December 31, 2021. FCI is wholly-owned by Civista and holds and manages its securities portfolio. The operations of FCI are located in Wilmington, Delaware.

Use of Estimates: To prepare financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and future results could differ. The allowance for loan losses, determination of goodwill impairment, fair values of financial instruments, valuation of deferred tax assets, pension obligations and other-than-temporary-impairment of securities are considered material estimates that are particularly susceptible to significant change in the near term.

Cash Flows: Cash and cash equivalents include cash on hand and demand deposits with financial institutions with original maturities of less than 90 days. Net cash flows are reported for customer loan and deposit

transactions, interest bearing deposits in other financial institutions, federal funds purchased, short-term borrowings and repurchase agreements. The Company routinely maintains balances that exceed FDIC insured limits and the risk of loss is very low with respect to such deposits.

Securities: Debt securities are classified as available for sale when they might be sold before maturity. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax.

Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage backed securities where prepayments are anticipated. Gains and losses on sales are based on the amortized cost of the security sold using the specific identification method.

Securities are evaluated on at least a quarterly basis and more frequently when economic or market conditions warrant such an evaluation to determine whether a decline in their value is other than temporary. For debt securities, management considers whether the present value of cash flows expected to be collected are less than the security’s amortized cost basis, the magnitude and duration of the decline, the reasons underlying the decline and the Company’s intent to sell the security or whether it is more likely than not that the Company would be required to sell the security before its anticipated recovery in market value, to determine whether the loss in value is other than temporary. Once a decline in value is determined to be other than temporary, if the Company does not intend to sell the security, and it is more likely than not that it will not be required to sell the security, before recovery of the security’s amortized cost basis, the charge to earnings is limited to the amount of credit loss. Any remaining difference between fair value and amortized cost is recognized in other comprehensive income, net of applicable taxes. Otherwise, the entire difference between fair value and amortized cost is charged to earnings.

Other securities which include FHLB stock, Federal Reserve Bank (“FRB”) stock, Federal Agricultural Mortgage Corporation stock, Bankers’ Bancshares Inc. (“BB”) stock, and Norwalk Community Development Corp (“NCDC”) stock are carried at cost.

Equity securities: Equity securities are held at fair value. Holding gains and losses are recorded in noninterest income. Dividends are recognized as income when earned.

Loans Held for Sale: Mortgage loans originated and intended for sale in the secondary market and loans that management no longer intends to hold for the foreseeable future, are carried at the lower of aggregate cost or fair value, as determined by outstanding commitments from investors. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings.

Loans: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of deferred loan fees and costs, and an allowance for loan losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments.

Interest income on mortgage and commercial loans is discontinued at the time the loan is 90 days delinquent unless the credit is well-secured and in process of collection. Interest income on consumer loans is discontinued

when management determines future collection is unlikely. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful.

All interest accrued, but not received, for loans placed on nonaccrual, is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Purchased Loans: The Company purchases individual loans and groups of loans. Purchased loans that show evidence of credit deterioration since origination are recorded at the amount paid (or allocated fair value in a purchase business combination), such that there is no carryover of the seller’s allowance for loan losses. After acquisition, incurred losses are recognized by an increase in the allowance for loan losses.

Purchased loans are accounted for individually or aggregated into pools of loans based on common risk characteristics (e.g., credit score, loan type, and date of origination). The Company estimates the amount and timing of expected cash flows for each purchased loan or pool, and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loan’s, or pool’s, contractual principal and interest over expected cash flows is not recorded (nonaccretable difference).

Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded. If the present value of expected future cash flows is greater than the carrying amount, the excess is recognized as part of future interest income.

Allowance for Loan Losses: The allowance for loan losses (allowance) is calculated with the objective of maintaining a reserve sufficient to absorb inherent loan losses in the loan portfolio. Management establishes the allowance for loan losses based upon its evaluation of the pertinent factors underlying the types and quality of loans in the portfolio. In determining the allowance and the related provision for loan losses, the Company considers three principal elements: (i) specific impairment reserve allocations (valuation allowances) based upon probable losses identified during the review of impaired loans in the Commercial loan portfolio, (ii) allocations established for adversely-rated loans in the Commercial loan portfolio and nonaccrual Real Estate Residential, Consumer installment and Home Equity loans, and (iii) allocations on all other loans based principally on the use of a three-year period for loss migration analysis. These allocations are adjusted for consideration of general economic and business conditions, credit quality and delinquency trends, collateral values, and recent loss experience for these similar pools of loans. The Company analyzes its loan portfolio each quarter to determine the appropriateness of its allowance for loan losses.

All Commercial, Commercial Real Estate and Farm Real Estate loans are monitored on a regular basis with a detailed loan review completed for all loan relationships greater than $1,500. All Commercial, Commercial Real Estate and Farm Real Estate loans that are 90 days past due or in nonaccrual status, are analyzed to determine if they are “impaired”, which means that it is probable that all amounts will not be collected according to the contractual terms of the loan agreement. All loans that are delinquent 90 days are classified as substandard and placed on nonaccrual status unless they are well-secured and in the process of collection. The remaining loans are

evaluated and segmented with loans with similar risk characteristics. The Company allocates reserves based on risk categories and portfolio segments described below, which conform to the Company’s asset classification policy. In reviewing risk within Civista’s loan portfolio, management has identified specific segments to categorize loan portfolio risk: (i) Commercial & Agriculture loans; (ii) Commercial Real Estate – Owner Occupied loans; (iii) Commercial Real Estate – Non-Owner Occupied loans; (iv) Residential Real Estate loans; (v) Real Estate Construction loans; (vi) Farm Real Estate loans; and (vii) Consumer and Other loans. Additional information related to economic factors can be found in Note 4.

Loan Charge-off Policies: All unsecured open- and closed-ended retail loans that become past due 90 days from the contractual due date are charged off in full. In lieu of charging off the entire loan balance, loans with non-real estate collateral may be written down to the net realizable value of the collateral, if repossession of collateral is assured and in process. For open- and closed-ended loans secured by residential real estate, a current assessment of fair value is made no later than 180 days past due. Any outstanding loan balance in excess of the net realizable value of the property is charged off. All other loans are generally charged down to the net realizable value when Civista recognizes the loan is permanently impaired, which is generally after the loan is 90 days past due.

Troubled Debt Restructurings: In certain situations based on economic or legal reasons related to a borrower’s financial difficulties, management may grant a concession for other than an insignificant period of time to the borrower that would not otherwise be considered. The related loan is classified as a troubled debt restructuring (TDR). Management strives to identify borrowers in financial difficulty early and work with them to modify to more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal, management measures any impairment on the restructuring as noted above for impaired loans. In addition to the allowance for the pooled portfolios, management has developed a separate reserve for loans that are identified as impaired through a TDR. These loans are excluded from pooled loss forecasts and a separate reserve is provided under the accounting guidance for loan impairment. Consumer loans whose terms have been modified in a TDR are also individually analyzed for estimated impairment.

Other Real Estate: Other real estate acquired through or instead of loan foreclosure is initially recorded at fair value less costs to sell when acquired, establishing a new cost basis and any deficiency in the value is charged off through the allowance. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Operating costs after acquisition are expensed.

Premises and Equipment: Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed using both accelerated and straight-line methods over the estimated useful life of the asset, ranging from three to seven years for furniture and equipment and seven to fifty years for buildings and improvements.

Federal Home Loan Bank (FHLB) Stock: Civista is a member of the FHLB of Cincinnati and as such, is required to maintain a minimum investment in stock of the FHLB that varies with the level of advances outstanding with the FHLB. The stock is bought from and sold to the FHLB based upon its $100 par value. The stock does not have a readily determinable fair value and as such is classified as restricted stock, carried at cost and evaluated for impairment by management. The stock’s value is determined by the ultimate recoverability of the par value

rather than by recognizing temporary declines. The determination of whether the par value will ultimately be recovered is influenced by criteria such as the following: (a) the significance of the decline in net assets of the FHLB as compared to the capital stock amount and the length of time this situation has persisted, (b) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance, (c) the impact of legislative and regulatory changes on the customer base of the FHLB, and (d) the liquidity position of the FHLB. With consideration given to these factors, management concluded that the FHLB stock was not impaired at December 31, 2021 or 2020. FHLB Stock is included in Other Securities on the Consolidated Balance Sheet.

Federal Reserve Bank (FRB) Stock: Civista is a member of the Federal Reserve System. FRB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. FRB Stock is included in Other Securities on the Consolidated Balance Sheet.

Bank Owned Life Insurance (BOLI): Civista has purchased BOLI policies on certain key executives. BOLI is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Changes in the cash surrender value are recorded as income in the period that the change occurs.

Goodwill and Other Intangible Assets: Goodwill results from business acquisitions and represents the excess of the purchase price over the fair value of acquired tangible assets and liabilities and identifiable intangible assets. Goodwill is assessed at least annually for impairment and any such impairment will be recognized in the period identified.

Other intangible assets consist of core deposit intangibles arising from whole bank and branch acquisitions. These intangible assets are measured at fair value and then amortized on an accelerated method over their estimated useful lives, which range from five to twelve years.

Mortgage Servicing Rights: Mortgage servicing rights are recognized as assets for the allocated value of retained mortgage servicing rights on loans sold. Mortgage servicing rights are initially recorded at fair value at the date of transfer. The valuation technique uses the present value of estimated future cash flows using current market discount rates. Mortgage servicing rights are amortized in proportion to, and over the period of, estimated net servicing revenues. Impairment is evaluated based on the fair value of the rights, using groupings of the underlying loans as to interest rates and then, secondarily, prepayment characteristics. Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Any impairment of a grouping is reported as a valuation allowance to the extent that fair value is less than the capitalized asset for the grouping.

Long-lived Assets: Premises and equipment and other intangible assets, and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value.

Repurchase Agreements: Substantially all repurchase agreement liabilities represent amounts advanced by various customers. Securities are pledged to cover these liabilities, which are not covered by federal deposit insurance.

Loan Commitments and Related Financial Instruments: Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay.

Income Taxes: Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax basis of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized.

The Company prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Benefits from tax positions should be recognized in the financial statements only when it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information.

A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The Company recognizes interest and/or penalties related to income tax matters in income tax expense.

Stock-Based Compensation: Compensation cost is recognized for stock options and restricted stock awards issued to employees and directors, based on the fair value of these awards at the grant date. The market price of the Company’s common shares at the date of the grant is used for restricted shares.

Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award.

Retirement Plans: Pension expense is the net of service and interest cost, expected return on plan assets and amortization of gains and losses not immediately recognized. Employee 401(k) and profit sharing plan expense consist of the amount of matching contributions. Deferred compensation allocates the benefits over the years of service.

Earnings per Common Share: Earnings per share is computed using the two-class method. Basic earnings per share are net income available to common shareholders divided by the weighted average number of common shares outstanding during the period, which excludes participating securities. Diluted earnings per common share include the dilutive effect of additional potential common shares issuable related to convertible preferred shares. Treasury shares are not deemed outstanding for earnings per share calculations.

Comprehensive Income: Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available for sale and changes in the funded status of the pension plan.

Loss Contingencies: Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe that any such loss contingencies currently exist that will have a material effect on the financial statements.

Restrictions on Cash: Cash on hand or on deposit with the Federal Reserve Bank is required to meet regulatory reserve and clearing requirements. These balances do not earn interest. The required reserve amount at December 31, 2021 was $0. The Company had cash pledged as collateral on its interest rate swaps with third party financial institutions of $10,780 at December 31, 2021.

Dividend Restriction: Banking regulations require maintaining certain capital levels and may limit the dividends paid by Civista to CBI or by CBI to shareholders. Additional information related to dividend restrictions can be found in Note 18.

Fair Value of Financial Instruments: Fair values of financial instruments are estimated using relevant market information and other assumptions that reflect exit price value, as more fully disclosed in Note 16. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates.

Operating Segments: While the Company’s chief decision makers monitor the revenue streams of the Company’s various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Operating segments are aggregated into one as operating results for all segments are similar. Accordingly, all of the Company’s financial service operations are considered by management to be aggregated in one reportable operating segment.

Treasury Stock: Shares of CBI common stock that are repurchased are recorded in treasury stock at cost.

Business Combinations: At the date of acquisition the Company records the assets and liabilities of acquired companies on the Consolidated Balance Sheets at their fair value. The results of operations for acquired companies are included in the Company’s Consolidated Statements of Operations beginning at the acquisition date. Expenses arising from acquisition activities are recorded in the Consolidated Statements of Operations during the period incurred.

Derivative Instruments and Hedging Activities: The Company enters into interest rate swap agreements to facilitate the risk management strategies of a small number of commercial banking customers. All derivatives are accounted for in accordance with ASC-815, Derivatives and Hedging. The Company mitigates the risk of entering into these agreements by entering into equal and offsetting swap agreements with highly rated third party financial institutions. The swap agreements are free-standing derivatives and are recorded at fair value in the Company’s Consolidated Balance Sheets. Changes in fair value are recorded as income or expense in the period that they occur. The Company is party to master netting arrangements with its financial institution counterparties. The master netting arrangements provide for a single net settlement of all swap agreements, as well as collateral, in the event of default on, or termination of, any one contract. Collateral, in the form of cash and marketable securities, is posted by the counterparty with net liability positions in accordance with contract thresholds.

Reclassifications: Some items in the prior year financial statements were reclassified to conform to the current presentation. Such reclassifications had no effect on net income or shareholders’ equity.

Adoption of New Accounting Standards:

In October 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-08, Codification Improvements to Subtopic 310-20, Receivables – Nonrefundable Fees and Other Costs, which clarifies that, for each reporting period, an entity should reevaluate whether a callable debt security is within the scope of ASC 310-20-35-33. We adopted ASU 2020-08 effective January 1, 2021, which did not have a material impact on the Company’s Consolidated Financial Statements.

Effect of Newly Issued but Not Yet Effective Accounting Standards:

In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which changes the impairment model for most financial assets. This ASU is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The underlying premise of ASU 2016-13 is that financial assets measured at amortized cost should be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The allowance for credit losses should reflect management’s current estimate of credit losses that are expected to occur over the remaining life of a financial asset. The income statement will be effected for the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted for annual and interim periods beginning after December 15, 2018. On October 16, 2019, the FASB voted to defer the effective date for ASC 326, Financial Instruments – Credit Losses, for smaller reporting companies to fiscal years beginning after December 15, 2022, and interim periods within those fiscal years, which was codified in the final ASU issued by the FASB on November 15, 2019. As a result, because the Company qualified as a smaller reporting company, based on its most recent determination under applicable rules of the Securities and Exchange Commission (“SEC”), as of November 15, 2019, the Company will not be subject to ASU 2016-13 until its annual and interim periods beginning after December 15, 2022. Management is in the process of evaluating the impact adoption of ASU 2016-13 will have on the Company’s Consolidated Financial Statements. This process has engaged multiple areas of the Company in evaluating loss estimation methods and application of these methods to specific segments of the loan portfolio. Management has been actively monitoring FASB developments and evaluating the use of different methods allowed. Due to continuing development of our methodology, additional time is required to quantify the affect this ASU will have on the Company’s Consolidated Financial Statements. Management continues to refine its modeling and is running parallel calculations and will finalize a method or methods of adoption in time for the effective date.

In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment. To simplify the subsequent measurement of goodwill, the FASB eliminated Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities)

following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. A public business entity that is an SEC filer, such as the Company, should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. On October 16, 2019, the FASB voted to defer the effective date for ASC 350, Intangibles – Goodwill and Other, for smaller reporting companies, such as the Company, to fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The final ASU was issued by the FASB on November 15, 2019. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations.

In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, and Topic 825, Financial Instruments, which affects a variety of topics in the Codification and applies to all reporting entities within the scope of the affected accounting guidance. Topic 326, Financial Instruments – Credit Losses amendments are effective for SEC registrants for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The amendments to Topic 825 are effective for interim and annual reporting periods beginning after December 15, 2019. On October 16, 2019, the FASB voted to defer the effective date for ASC 326, Financial Instruments – Credit Losses, for smaller reporting companies, such as the Company, to fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The final ASU was issued by the FASB on November 15, 2019. The Company is currently evaluating the potential impact of the Topic 326 amendments on the Company’s Consolidated Financial Statements.

In May 2019, the FASB issued ASU 2019-05, Financial Instruments – Credit Losses, Topic 326, which allows entities to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost upon adoption of the new credit losses standard. To be eligible for the transition election, the existing financial asset must otherwise be both within the scope of the new credit losses standard and eligible for the applying the fair value option in ASC 825-10.3. The election must be applied on an instrument-by-instrument basis and is not available for either available for sale or held-to-maturity debt securities. For entities that elect the fair value option, the difference between the carrying amount and the fair value of the financial asset would be recognized through a cumulative-effect adjustment to opening retained earnings as of the date an entity adopted ASU 2016-13. Changes in fair value of that financial asset would subsequently be reported in current earnings. For entities that have not yet adopted ASU 2016-13, the effective dates and transition requirements are the same as those in ASU 2016-13. For entities that have adopted ASU 2016-13, ASU 2019-05 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted once ASU 2016-13 has been adopted. On October 16, 2019, the FASB voted to defer the effective date for ASC 326, Financial Instruments – Credit Losses, for smaller reporting companies, such as the Company, to fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The final ASU was issued by the FASB on November 15, 2019. The Company is currently building its model, documenting model assumptions, preparing to run the current state and future state models parallel and evaluating the impact the adoption of the standard will have on the Company’s financial statements.

In November 2019, the FASB issued ASU 2019-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842). The Update defers the effective dates of ASU 2016-13 for SEC filers that are eligible to be smaller reporting companies, such as the Company, to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. This Update also amends the mandatory effective date for the elimination of Step 2 from the goodwill impairment test under ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (Goodwill), to align with those used for credit losses. Furthermore, the ASU provides a one-year deferral of the effective dates of the ASUs on derivatives and hedging and leases for companies that are not public business entities. The Company qualified as a smaller reporting company and does not expect to early adopt these ASUs.

In November 2019, the FASB issued ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, to clarify its new credit impairment guidance in ASC 326, based on implementation issues raised by stakeholders. This Update clarified, among other things, that expected recoveries are to be included in the allowance for credit losses for these financial assets; an accounting policy election can be made to adjust the effective interest rate for existing troubled debt restructurings based on the prepayment assumptions instead of the prepayment assumptions applicable immediately prior to the restructuring event; and extends the practical expedient to exclude accrued interest receivable from all additional relevant disclosures involving amortized cost basis. The effective dates in this Update are the same as those applicable for ASU 2019-10. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations.

In March 2020, the FASB issued ASU 2020-03, Codification Improvements to Financial Instruments. This ASU was issued to improve and clarify various financial instruments topics, including the current expected credit losses (CECL) standard issued in 2016. The ASU includes seven issues that describe the areas of improvement and the related amendments to GAAP; they are intended to make the standards easier to understand and apply and to eliminate inconsistencies, and they are narrow in scope and are not expected to significantly change practice for most entities. Among its provisions, the ASU clarifies that all entities, other than public business entities that elected the fair value option, are required to provide certain fair value disclosures under ASC 825, Financial Instruments, in both interim and annual financial statements. It also clarifies that the contractual term of a net investment in a lease under Topic 842 should be the contractual term used to measure expected credit losses under Topic 326. Amendments related to ASU 2019-04 are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is not permitted before an entity’s adoption of ASU 2016-01. Amendments related to ASU 2016-13 for entities that have not yet adopted that guidance are effective upon adoption of the amendments in ASU 2016-13. Early adoption is not permitted before an entity’s adoption of ASU 2016-13. Amendments related to ASU 2016-13 for entities that have adopted that guidance are effective for fiscal years beginning after December 15, 2019, including interim periods within those years. Other amendments are effective upon issuance of this ASU. This Update is not expected to have a significant impact on the Company’s financial statements.

In January 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, March 2020, to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative

reference rates, such as the Secured Overnight Financing Rate (SOFR). Entities can elect not to apply certain modification accounting requirements to contracts affected by what the guidance calls “reference rate reform” if certain criteria are met. An entity that makes this election would not have to remeasure the contracts at the modification date or reassess a previous accounting determination. Also, entities can elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform if certain criteria are met, and can make a one-time election to sell and/or reclassify held-to-maturity debt securities that reference an interest rate affected by reference rate reform. The amendments in this ASU are effective for all entities upon issuance through December 31, 2022. The Company is working through this transition via a multi-disciplinary project team. We are still evaluating the impact the change to a benchmark like SOFR or Prime Rate will have on our financial condition, results of operations or cash flows.

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Securities

12 Months Ended

Dec. 31, 2021

Investments Debt And Equity Securities [Abstract]

Securities

NOTE 2 - SECURITIES

The amortized cost and fair value of available for sale securities and the related gross unrealized gains and losses recognized were as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
2021
U.S. Treasury securities and obligations of U.S. government agencies	$	48,390	$	30	$	(530	)	$	47,890
Obligations of states and political subdivisions		281,247		17,696		(107	)		298,836
Mortgage-back securities in government sponsored entities		211,660		2,938		(1,450	)		213,148
Total debt securities	$	541,297	$	20,664	$	(2,087	)	$	559,874
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
2020
U.S. Treasury securities and obligations of U.S. government agencies	$	21,479	$	220	$	(6	)	$	21,693
Obligations of states and political subdivisions		208,013		21,000		(1	)		229,012
Mortgage-back securities in government sponsored entities		106,824		5,963		(28	)		112,759
Total debt securities	$	336,316	$	27,183	$	(35	)	$	363,464

The amortized cost and fair value of securities at year end 2021 by contractual maturity were as follows. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately.

	Available for sale
	Amortized Cost		Fair Value
Due in one year or less	$	3,786	$	3,789
Due from one to five years		32,034		32,121
Due from five to ten years		61,675		63,083
Due after ten years		232,142		247,733
Mortgage-backed securities in government sponsored entities		211,660		213,148
Total securities available for sale	$	541,297	$	559,874

Securities with a carrying value of $168,435 and $159,527 were pledged as of December 31, 2021 and 2020, respectively, to secure public deposits, other deposits and liabilities as required or permitted by law.

Proceeds from sales of securities, gross realized gains and gross realized losses were as follows:

	2021		2020		2019
Sale proceeds	$	1,810	$	1,455	$	17,570
Gross realized gains		1,785		94		47
Gross realized losses		—		—		43
Gains from securities called or settled by the issuer		1		—		28

Debt securities with unrealized losses at year end 2021 and 2020 not recognized in income were as follows:

2021	12 Months or less					More than 12 months					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Treasury securities and obligations of U.S. government agencies	$	41,432	$	(473	)	$	2,014	$	(57	)	$	43,446	$	(530	)
Obligations of states and political subdivisions		25,797		(107	)		—		—			25,797		(107	)
Mortgage-backed securities in gov’t sponsored entities		141,327		(1,343	)		3,123		(107	)		144,450		(1,450	)
Total temporarily impaired	$	208,556	$	(1,923	)	$	5,137	$	(164	)	$	213,693	$	(2,087	)

2020	12 Months or less					More than 12 months					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Treasury securities and obligations of U.S. government agencies	$	6,501	$	(5	)	$	126	$	(1	)	$	6,627	$	(6	)
Obligations of states and political subdivisions		1,874		(1	)		—		—			1,874		(1	)
Mortgage-backed securities in gov’t sponsored entities		5,755		(28	)		—		—			5,755		(28	)
Total temporarily impaired	$	14,130	$	(34	)	$	126	$	(1	)	$	14,256	$	(35	)

The Company periodically evaluates securities for other-than-temporary impairment. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. Unrealized losses that are determined to be temporary in nature are recorded, net of tax, in accumulated other comprehensive loss on the Consolidated Balance Sheet.

The Company has assessed each available for sale security position for credit impairment. Factors considered in determining whether a loss is temporary include:

• The length of time and the extent to which fair value has been below cost;

• The severity of impairment;

• The cause of the impairment and the financial condition and near-term prospects of the issuer;

• If the Company intends to sell the investment;

• If it’s more-likely-than-not the Company will be required to sell the investment before recovering its amortized cost basis; and

• If the Company does not expect to recover the investment’s entire amortized cost basis (even if the Company does not intend to sell the investment).

The Company’s review for impairment generally entails:

• Identification and evaluation of investments that have indications of impairment;

• Analysis of individual investments that have fair values less than amortized cost, including consideration of length of time each investment has been in unrealized loss position and the expected recovery period;

• Evaluation of factors or triggers that could cause individual investments to qualify as having other-than-temporary impairment; and

• Documentation of these analyses, as required by policy.

At December 31, 2021, the Company owned 50 securities that were considered temporarily impaired. The unrealized losses on these securities have not been recognized into income because the issuers’ bonds are of high credit quality,

management has the intent and ability to hold these securities for the foreseeable future, and the decline in fair value is largely due to changes in market interest rates. The Company also considers sector specific credit rating changes in its analysis. The fair value is expected to recover as the securities approach their maturity date or reset date. The Company does not intend to sell until recovery and does not believe selling will be required before recovery.

The following table presents the net gains and losses on equity investments recognized in earnings at year-end 2021 and 2020, and the portion of unrealized gains and losses for the period that relates to equity investments held at year-end 2021 and 2020:

	2021		2020
Net gains (losses) recognized on equity securities during the year	$	186	$	(57	)
Less: Net gains realized on the sale of equity securities during the period		—		6
Unrealized gains (losses) recognized in equity securities held at December 31	$	186	$	(51	)

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Loans

12 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Loans

NOTE 3 - LOANS

Loans at year-end were as follows:

	2021			2020
Commercial & Agriculture	$	246,502		$	409,876
Commercial Real Estate - owner occupied		295,452			278,413
Commercial Real Estate - non-owner occupied		829,310			705,072
Residential Real Estate		430,060			442,588
Real Estate Construction		157,127			175,609
Farm Real Estate		28,419			33,102
Consumer and Other		11,009			12,842
Total Loans		1,997,879			2,057,502
Allowance for loan losses		(26,641	)		(25,028	)
Net loans	$	1,971,238		$	2,032,474

Included in Commercial & Agriculture loans as of December 31, 2021 and 2020 is $43,209 and $217,295, respectively, of Paycheck Protection Program (“PPP”) loans.

Included in total loans above are deferred loan fees of $2,924 and $5,998 at December 31, 2021 and 2020, respectively. Included in net deferred loan fees as of December 31, 2021 and 2020 is $1,762 and $5,194, respectively, of net deferred loan fees from PPP loans.

Paycheck Protection Program

In response to the novel COVID-19 pandemic, the Coronavirus Aid, Relief, and Economic Security Act of 2020, as amended (the “CARES Act”), was signed into law on March 27, 2020, to provide national emergency economic relief measures. The CARES Act amended the loan program of the Small Business Administration (the “SBA”), in which Civista participates, to create a guaranteed, unsecured loan program, the Paycheck Protection Program (the “PPP”), to fund operational costs of eligible businesses, organizations and self-employed persons during the COVID-19 pandemic. During 2020, Civista processed over 2,300 PPP loans totaling $268.3 million.

The Consolidated Appropriations Act 2021, was signed into law on December 27, 2020 to provide an additional funding of $284.5 billion under the PPP and the establishment of PPP Second Draw Loans under the Economic Aid to Hard-Hit Small Businesses, Nonprofit, and Venues Act (the “Relief Act”). This additional funding was made available from original PPP lenders on January 19, 2021, and the deadline (as extended) for submitting applications for PPP Second Draw Loans was May 31, 2021.

Funds provided under the Relief Act were earmarked both for first time PPP borrowers (subject to original PPP eligibility and limits) as well as ‘Second Draw’ Loans for borrowers that already received an original PPP loan. Additional Second Draw eligibility requirements were as follows: (1) entities must have no more than 300 employees, (2) entities must have suffered a 25% of more reduction in gross revenues between comparable quarters in 2019 and 2020, (3) some entities previously excluded are eligible for this round, such as local TV, newspaper, and radio, and (4) loan size limited to 2.5 times average monthly payroll with a maximum allowable amount of $2 million.

During 2021, Civista received SBA approval on, and funded, 1,340 PPP loans totaling $131,109 under the Relief Act.

Loans to principal officers, directors, and their affiliates at year-end 2021 and 2020 were as follows:

	2021			2020
Balance - Beginning of year	$	8,475		$	9,909
New loans and advances		15,522			1,153
Repayments		(6,693	)		(3,004	)
Effect of changes to related parties		143			417
Balance - End of year	$	17,447		$	8,475

The Company had credit lines to principal officers, directors, and their affiliates with an availability of $6,115 and $6,986 as of December 31, 2021 and 2020, respectively.

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Allowance for Loan Losses

12 Months Ended

Dec. 31, 2021

Text Block [Abstract]

Allowance for Loan Losses

NOTE 4 - ALLOWANCE FOR LOAN LOSSES

Management has an established methodology to determine the adequacy of the allowance for loan losses that assesses the risks and losses inherent in the loan portfolio. For purposes of determining the allowance for loan losses, the Company has segmented certain loans in the portfolio by product type. Loans are segmented into the following pools: Commercial and Agriculture loans, Commercial Real Estate – Owner Occupied loans, Commercial Real Estate – Non-owner Occupied loans, Residential Real Estate loans, Real Estate Construction

loans, Farm Real Estate loans and Consumer and Other loans. Loss migration rates for each risk category are calculated and used as the basis for calculating loan loss allowance allocations. Loss migration rates are calculated over a three-year period for all portfolio segments. Management also considers certain economic factors for trends that management uses to account for the qualitative and environmental changes in risk, which affects the level of the reserve. The following economic factors are analyzed:

• Changes in lending policies and procedures

• Changes in experience and depth of lending and management staff

• Changes in quality of credit review system

• Changes in the nature and volume of the loan portfolio

• Changes in past due, classified and nonaccrual loans and TDRs

• Changes in economic and business conditions

• Changes in competition or legal and regulatory requirements

• Changes in concentrations within the loan portfolio

• Changes in the underlying collateral for collateral dependent loans

The total allowance reflects management’s estimate of loan losses inherent in the loan portfolio at the consolidated balance sheet date. The Company considers the allowance for loan losses of $26,641 adequate to cover loan losses inherent in the loan portfolio, at December 31, 2021. The following tables present, by portfolio segment, the changes in the allowance for loan losses, the ending allocation of the allowance for loan losses and the loan balances outstanding for the years ended December 31, 2021, 2020 and 2019. The changes can be impacted by overall loan volume, adversely graded loans, historical charge-offs and economic factors.

Allowance for loan losses:

December 31, 2021	Beginning balance		Charge-offs			Recoveries		Provision (Credit)			Ending Balance
Commercial & Agriculture	$	2,810	$	(15	)	$	165	$	(360	)	$	2,600
Commercial Real Estate:
Owner Occupied		4,057		—			7		400			4,464
Non-Owner Occupied		12,451		—			395		1,014			13,860
Residential Real Estate		2,484		(120	)		302		(69	)		2,597
Real Estate Construction		2,439		—			1		(630	)		1,810
Farm Real Estate		338		—			12		(63	)		287
Consumer and Other		209		(24	)		60		(69	)		176
Unallocated		240		—			—		607			847
Total	$	25,028	$	(159	)	$	942	$	830		$	26,641

For the year ended December 31, 2021, the Company provided $830 to the allowance for loan losses, as compared to a provision of $10,112 for the year ended December 31, 2020. The decrease in the provision was due to the stability of our credit quality metrics coupled with the stabilization and, in some cases, improvement of international, national, regional and local economic conditions that were adversely impacted by the 2020 economic shutdown and restrictions in response to the ongoing COVID-19 pandemic. While vaccinations and booster shots in 2021 have created some level of optimism in the business community, there remains uncertainty due to the continued concern over increased infections from the Delta and Omicron variants of COVID. We remain cautious given the level of classified loans in the portfolio, particularly loans to borrowers in the hotel industry as well as the challenges businesses face in today’s environment. The lingering economic impacts related to the COVID-19 pandemic have included the loss of revenue experienced by our business clients, disruption of supply chains, higher employee wages coupled with workforce shortages and increased costs of materials and services. While some of the pressures have eased, ongoing supply chain and staffing challenges, as well as inflationary pressures remain. Our Commercial and Commercial Real Estate portfolios have been, and are expected to continue to be, impacted the most.

For the year ended December 31, 2021, the allowance for Commercial & Agriculture loans decreased due to a decrease in general reserves required for this type as a result of a decrease in loss rates. Commercial and Agriculture loan balances decreased during the year mainly from Civista’s participation in the PPP loan program. The result was represented as a decrease in the provision. The allowance for Commercial Real Estate – Owner Occupied loans increased due to an increase in general reserves required for this type as a result of increased loan balances, offset by a decrease in classified loans balances. The result was represented as an increase in the provision. The allowance for Commercial Real Estate – Non-Owner Occupied loans increased due to an increase in general reserves required as a result of an increase in loan balances, offset by decreases in classified loan balances and loss rates. This was represented as an increase in the provision. The allowance for Residential Real Estate loans increased due to an increase in loss rates for this type of loan. The result was represented by an increase in the provision. The allowance for Real Estate Construction loans decreased due to a decrease in loan balances. This was represented as a decrease in the provision. Management feels that the unallocated amount is appropriate and within the relevant range for the allowance that is reflective of the risk in the portfolio at December 31, 2021.

Allowance for loan losses:

December 31, 2020	Beginning balance		Charge-offs			Recoveries		Provision (Credit)		Ending Balance
Commercial & Agriculture	$	2,219	$	(20	)	$	7	$	604	$	2,810
Commercial Real Estate:
Owner Occupied		2,541		(148	)		259		1,405		4,057
Non-Owner Occupied		6,584		—			48		5,819		12,451
Residential Real Estate		1,582		(236	)		218		920		2,484
Real Estate Construction		1,250		—			4		1,185		2,439
Farm Real Estate		344		—			13		(19)		338
Consumer and Other		247		(61	)		65		(42)		209
Unallocated		—		—			—		240		240
Total	$	14,767	$	(465	)	$	614	$	10,112	$	25,028

For the year ended December 31, 2020, the Company provided $10,112 to the allowance for loan losses. The provision was primarily the result of an increase in Civista’s qualitative factors, primarily changes in international, national, regional and local conditions, related to the economic shutdown driven by the ongoing COVID-19 pandemic. Economic impacts related to the COVID-19 pandemic during 2020 included the loss of revenue by our business clients, disruption of supply chains, additional employee costs for businesses due to the pandemic, higher unemployment rates throughout our footprint and a large number of customers requesting payment relief. The allowance for Commercial & Agriculture loans increased due to an increase in general reserves required for this type as a result of an increase in loan balances mainly from Civista’s participation in the PPP loan program and by an increase in loss rates, resulting in an increase in the provision. PPP loans are eligible for a 100% guaranty by the U.S. Small Business Administration (“SBA”) and, as a result, the reserve percentage for PPP loans is substantially less than the other loans in this segment. However, in the event of a loss resulting from a default on a PPP loan, and a determination by the SBA that there was a deficiency in the manner on which the PPP loan was originated or funded, the SBA may deny its liability under the guaranty.

For the year ended December 31, 2020, the allowance for Commercial Real Estate – Owner Occupied loans increased due to an increase in general reserves required for this type as a result of higher loan balances, an increase in classified loans and the volume of loans in payment deferral, and an increase in loss rates. The result was represented as an increase in the provision. The allowance for Commercial Real Estate – Non-Owner Occupied loans increased due to an increase in general reserves required as a result of an increase in loan balances, an increase in classified loans and the volume of loans in payment deferral, and an increase in loss rates. This was represented as an increase in the provision. The allowance for Residential Real Estate loans increased due to an increase in general reserves required for this type as a result of factors related to the COVID-19 pandemic, offset by a decrease in loan balances, represented by an increase in the provision. The allowance for Real Estate Construction loans increased due to an increase in general reserves required as a result of an increase in loan balances and an increase in loss rates, represented by an increase in the provision. The allowance for Farm Real Estate loans decreased due to a decrease in general reserves required as a result of a decrease in loan balances. The result was represented as a decrease in the provision.​​​​​​​

The allowance for Consumer and Other loans decreased due to a decrease in general reserves required as a result of a decrease in loan balances and loss rates. The result was represented as a decrease in the provision.

Allowance for loan losses:

December 31, 2019	Beginning balance		Charge-offs			Recoveries		Provision (Credit)			Ending Balance
Commercial & Agriculture	$	1,747	$	(114	)	$	86	$	500		$	2,219
Commercial Real Estate:
Owner Occupied		1,962		(161	)		289		451			2,541
Non-Owner Occupied		5,803		—			102		679			6,584
Residential Real Estate		1,531		(294	)		259		86			1,582
Real Estate Construction		1,046		(24	)		3		225			1,250
Farm Real Estate		397		—			5		(58	)		344
Consumer and Other		284		(183	)		85		61			247
Unallocated		909		—			—		(909	)		—
Total	$	13,679	$	(776	)	$	829	$	1,035		$	14,767

For the year ended December 31, 2019, the allowance for Commercial & Agriculture loans increased as a result of an increase in general reserves due to higher loan balances. The result was represented as an increase in the provision. The allowance for Commercial Real Estate – Owner Occupied loans increased as a result of an increase in general reserves due to higher loan balances. The result was represented as an increase in the provision. The allowance for Commercial Real Estate – Non-Owner Occupied loans increased due to an increase in general reserves required for this type as a result of higher loan balances. The allowance for Residential Real Estate loans increased as a result of an increase in general reserves required for this type as a result of an increase in outstanding loan balances, represented by an increase in the provision. The allowance for Real Estate Construction loans increased due to higher outstanding loan balances for this type of loan. The allowance for Farm Real Estate loans was reduced by a decrease in general reserves required for this type as a result of lower outstanding loan balances. The result was represented as a decrease in the provision.​​​​​​​

The following tables present, by portfolio segment, the allocation of the allowance for loan losses and related loan balances as of December 31, 2021 and December 31, 2020.

December 31, 2021	Loans acquired with credit deterioration		Loans individually evaluated for impairment		Loans collectively evaluated for impairment		Total
Allowance for loan losses:
Commercial & Agriculture	$	—	$	—	$	2,600	$	2,600
Commercial Real Estate:
Owner Occupied		—		7		4,457		4,464
Non-Owner Occupied		—		—		13,860		13,860
Residential Real Estate		—		11		2,586		2,597
Real Estate Construction		—		—		1,810		1,810
Farm Real Estate		—		—		287		287
Consumer and Other		—		—		176		176
Unallocated		—		—		847		847
Total	$	—	$	18	$	26,623	$	26,641
Outstanding loan balances:
Commercial & Agriculture	$	—	$	—	$	246,502	$	246,502
Commercial Real Estate:
Owner Occupied		—		187		295,265		295,452
Non-Owner Occupied		—		—		829,310		829,310
Residential Real Estate		290		526		429,244		430,060
Real Estate Construction		—		—		157,127		157,127
Farm Real Estate		—		509		27,910		28,419
Consumer and Other		—		—		11,009		11,009
Total	$	290	$	1,222	$	1,996,367	$	1,997,879

December 31, 2020	Loans acquired with credit deterioration		Loans individually evaluated for impairment		Loans collectively evaluated for impairment		Total
Allowance for loan losses:
Commercial & Agriculture	$	—	$	73	$	2,737	$	2,810
Commercial Real Estate:
Owner Occupied		—		5		4,052		4,057
Non-Owner Occupied		—		—		12,451		12,451
Residential Real Estate		—		29		2,455		2,484
Real Estate Construction		—		—		2,439		2,439
Farm Real Estate		—		—		338		338
Consumer and Other		—		—		209		209
Unallocated		—		—		240		240
Total	$	—	$	107	$	24,921	$	25,028
Outstanding loan balances:
Commercial & Agriculture	$	—	$	74	$	409,802	$	409,876
Commercial Real Estate:
Owner Occupied		—		980		277,433		278,413
Non-Owner Occupied		—		48		705,024		705,072
Residential Real Estate		388		946		441,254		442,588
Real Estate Construction		—		—		175,609		175,609
Farm Real Estate		—		618		32,484		33,102
Consumer and Other		—		—		12,842		12,842
Total	$	388	$	2,666	$	2,054,448	$	2,057,502

The following tables represent credit exposures by internally assigned risk ratings for the periods ended December 31, 2021 and 2020. The remaining loans in the Residential Real Estate, Real Estate Construction and Consumer and Other loan categories that are not assigned a risk grade are presented in a separate table below. The risk rating analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled or at all. The Company’s internal credit risk rating system is based on experiences with similarly graded loans.

The Company’s internally assigned grades are as follows:

• Pass – loans which are protected by the current net worth and paying capacity of the obligor or by the value of the underlying collateral.

• Special Mention – loans where a potential weakness or risk exists, which could cause a more serious problem if not corrected.

• Substandard – loans that have a well-defined weakness based on objective evidence and are characterized by the distinct possibility that Civista will sustain some loss if the deficiencies are not corrected.

• Doubtful – loans classified as doubtful have all the weaknesses inherent in a substandard asset. In addition, these weaknesses make collection or liquidation in full highly questionable and improbable, based on existing circumstances.

• Loss – loans classified as a loss are considered uncollectible, or of such value that continuance as an asset is not warranted.

• Unrated – Generally, Residential Real Estate, Real Estate Construction and Consumer and Other loans are not risk-graded, except when collateral is used for a business purpose.

December 31, 2021	Pass		Special Mention		Substandard		Doubtful		Ending Balance
Commercial & Agriculture	$	244,787	$	526	$	1,189	$	—	$	246,502
Commercial Real Estate:
Owner Occupied		290,617		3,119		1,716		—		295,452
Non-Owner Occupied		764,181		28,042		37,087		—		829,310
Residential Real Estate		77,594		164		4,455		—		82,213
Real Estate Construction		136,149		260		5		—		136,414
Farm Real Estate		27,023		205		1,191		—		28,419
Consumer and Other		764		—		20		—		784
Total	$	1,541,115	$	32,316	$	45,663	$	—	$	1,619,094
December 31, 2020	Pass		Special Mention		Substandard		Doubtful		Ending Balance
Commercial & Agriculture	$	401,636	$	4,472	$	3,768	$	—	$	409,876
Commercial Real Estate:
Owner Occupied		248,316		19,429		10,668		—		278,413
Non-Owner Occupied		604,909		58,270		41,893		—		705,072
Residential Real Estate		81,409		668		5,524		—		87,601
Real Estate Construction		158,207		962		492		—		159,661
Farm Real Estate		30,486		216		2,400		—		33,102
Consumer and Other		833		—		33		—		866
Total	$	1,525,796	$	84,017	$	64,778	$	—	$	1,674,591

Due to the business disruptions and shut-downs due to the Covid-19 pandemic, in 2020, management offered payment deferments to a number of customers that had previously been current in all respects. Civista instituted an enhanced portfolio management process which included meeting with customers, requesting additional financial information and evaluating cashflow and adjusting risk ratings as conditions warrant. During this process we systematically downgraded a significant number of loans to recognize the increased risk attributed to the pandemic. Additionally, Civista offered longer term deferrals under Section 4013 of the Cares Act, that were also downgraded as appropriate. Based on improved financial performance the bank has upgraded 48% of criticized loans during the year. The lodging industry was hit the hardest and recovery is taking longer for that segment. Civista believes it has prudently identified risk, assigned appropriate risk ratings, and has a comprehensive portfolio management process to identify and quantify risk.

The following tables present performing and nonperforming loans based solely on payment activity for the years ended December 31, 2021 and December 31, 2020 that have not been assigned an internal risk grade. The types of loans presented here are not assigned a risk grade unless there is evidence of a problem. Payment activity is reviewed by management on a monthly basis to evaluate performance. Loans are considered to be nonperforming when they become 90 days past due or if management thinks that we may not collect all of our principal and interest. Nonperforming loans also include certain loans that have been modified in Troubled Debt Restructurings (TDRs) where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. These concessions typically result from the Company’s loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions due to economic status. Certain TDRs are classified as nonperforming at the time of restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months.

December 31, 2021	Residential Real Estate		Real Estate Construction		Consumer and Other		Total
Performing	$	347,847	$	20,713	$	10,225	$	378,785
Nonperforming		—		—		—		—
Total	$	347,847	$	20,713	$	10,225	$	378,785

December 31, 2020	Residential Real Estate		Real Estate Construction		Consumer and Other		Total
Performing	$	354,987	$	15,948	$	11,976	$	382,911
Nonperforming		—		—		—		—
Total	$	354,987	$	15,948	$	11,976	$	382,911

The following tables include an aging analysis of the recorded investment of past due loans outstanding as of December 31, 2021 and 2020.

December 31, 2021	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater		Total Past Due		Current		Purchased Credit- Impaired Loans		Total Loans		Past Due 90 Days and Accruing
Commercial & Agriculture	$	249	$	13	$	78	$	340	$	246,162	$	—	$	246,502	$	—
Commercial Real Estate:
Owner Occupied		—		—		106		106		295,346		—		295,452		—
Non-Owner Occupied		—		—		4		4		829,306		—		829,310		—
Residential Real Estate		1,848		879		842		3,569		426,201		290		430,060		—
Real Estate Construction		—		—		—		—		157,127		—		157,127		—
Farm Real Estate		—		—		—		—		28,419		—		28,419		—
Consumer and Other		42		—		9		51		10,958		—		11,009		—
Total	$	2,139	$	892	$	1,039	$	4,070	$	1,993,519	$	290	$	1,997,879	$	—

December 31, 2020	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater		Total Past Due		Current		Purchased Credit- Impaired Loans		Total Loans		Past Due 90 Days and Accruing
Commercial & Agriculture	$	117	$	25	$	50	$	192	$	409,684	$	—	$	409,876	$	—
Commercial Real Estate:
Owner Occupied		—		4		102		106		278,307		—		278,413		—
Non-Owner Occupied		—		—		6		6		705,066		—		705,072		—
Residential Real Estate		1,059		867		1,314		3,240		438,960		388		442,588		—
Real Estate Construction		—		—		—		—		175,609		—		175,609		—
Farm Real Estate		—		—		4		4		33,098		—		33,102		—
Consumer and Other		59		1		16		76		12,766		—		12,842		—
Total	$	1,235	$	897	$	1,492	$	3,624	$	2,053,490	$	388	$	2,057,502	$	—

The following table presents loans on nonaccrual status, excluding purchased credit-impaired (PCI) loans, as of December 31, 2021 and 2020.

	2021		2020
Commercial & Agriculture	$	78	$	139
Commercial Real Estate:
Owner Occupied		334		964
Non-Owner Occupied		4		6
Residential Real Estate		3,232		3,893
Real Estate Construction		5		7
Farm Real Estate		—		85
Consumer and Other		20		31
Total	$	3,673	$	5,125

Nonaccrual Loans: Loans are considered for nonaccrual status upon reaching 90 days delinquency, unless the loan is well secured and in the process of collection, although Civista may be receiving partial payments of interest and partial repayments of principal on such loans. When a loan is placed on nonaccrual status, previously accrued but unpaid interest is deducted from interest income. A loan may be returned to accruing status only if one of three conditions are met: the loan is well-secured and none of the principal and interest has been past due for a minimum of 90 days; the loan is a TDR and the borrower has made a minimum of six months payments; or the principal and interest payments are reasonably assured and a sustained period of performance has occurred, generally six months. The gross interest income that would have been recorded on nonaccrual loans in 2021, 2020 and 2019 if the loans had been current in accordance with their original terms and had been outstanding throughout the period or since origination, if held for part of the period, was $307, $536 and $571, respectively. The amount of interest income on such loans recognized on a cash basis was $716 in 2021, $477 in 2020 and $379 in 2019.

Modifications: A modification of a loan constitutes a TDR when Civista for economic or legal reasons related to a borrower’s financial difficulties grants a concession to the borrower that it would not otherwise consider. Civista offers various types of concessions when modifying a loan, however, forgiveness of principal is rarely granted. Commercial

Real Estate loans modified in a TDR often involve reducing the interest rate lower than the current market rate for new debt with similar risk. Real Estate loans modified in a TDR were primarily comprised of interest rate reductions where monthly payments were lowered to accommodate the borrowers’ financial needs.

Loans modified in a TDR are typically already on non-accrual status and partial charge-offs have in some cases already been taken against the outstanding loan balance. As a result, loans modified in a TDR may have the financial effect of increasing the specific allowance associated with the loan. An allowance for impaired loans that have been modified in a TDR are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or the estimated fair value of the collateral, less any selling costs, if the loan is collateral dependent. Management exercises significant judgment in developing these estimates. TDRs accounted for $18 of the allowance for loan losses as of December 31, 2021, $35 as of December 31, 2020 and $91 as of December 31, 2019.

Loan Modifications/Troubled Debt Restructurings

In the second quarter of 2020, in the initial days of the pandemic, Civista booked 90-day payment modifications on 813 loans with an aggregate principal balance outstanding of $431.3 million. Additional 90-day modifications were extended on 100 loans with an aggregate principal balance outstanding of $124.4 million. Both deferral programs primarily consisted of the deferral of principal and/or interest payments. All such modified loans were performing at December 31, 2019 and complied with the provisions of the CARES Act to not be considered a TDR.

As of December 31, 2021, Civista had 7 loans with an aggregate principal balance outstanding of $5,142 that remained on CARES Act modifications. Details with respect to loan modifications that remain on deferred status are as follows:

Type of Loan	Number of Loans		Balance		Percent of Loans Outstanding1
			(In thousands)
Commercial & Agriculture		2	$	498		0.03	%
Commercial Real Estate:
Non-Owner Occupied		5		4,644		0.24	%
Total		7	$	5,142		0.26	%
1 excluding PPP loans

There were no loans modified during the twelve month period ended December 31, 2021 and 2020. Loan modifications that are considered TDRs completed during the twelve month periods ended December 31, 2019 were as follows:

	For the Twelve Month Period Ended December 31, 2019
	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial & Agriculture		—	$	—	$	—
Commercial Real Estate:
Owner Occupied		—		—		—
Non-Owner Occupied		1		382		382
Residential Real Estate		—		—		—
Real Estate Construction		—		—		—
Farm Real Estate		—		—		—
Consumer and Other		—		—		—
Total Loan Modifications		1	$	382	$	382

Recidivism, or the borrower defaulting on its obligation pursuant to a modified loan, results in the loan once again becoming a non-accrual loan. Recidivism occurs at a notably higher rate than do defaults on new originations loans, so modified loans present a higher risk of loss than do new origination loans. During the periods ended December 31, 2021, 2020 and 2019, there were no defaults on loans that were modified and considered TDRs during the previous twelve months.

Impaired Loans: Larger (greater than $350) commercial loan, commercial real estate loan and farm real estate loan relationships, all TDRs and residential real estate and consumer loans that are part of a larger relationship are tested for impairment. These loans are analyzed to determine if it is probable that all amounts will not be collected according to the contractual terms of the loan agreement. If management determines that the value of the impaired loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through an allowance estimate or a charge-off to the allowance.

The following table includes the recorded investment and unpaid principal balances for impaired financing receivables, excluding PCI loans, with the associated allowance amount, if applicable, as of December 31, 2021 and 2020.

	December 31, 2021						December 31, 2020
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:
Commercial Real Estate:
Owner Occupied	$	—	$	—			$	757	$	757
Non-Owner Occupied		—		—				48		48
Residential Real Estate		503		528				915		940
Farm Real Estate		509		509				618		618
Total		1,012		1,037				2,338		2,363
With an allowance recorded:
Commercial & Agriculture		—		—	$	—		74		74	$	73
Commercial Real Estate:
Owner Occupied		187		187		7		223		223		5
Residential Real Estate		23		27		11		31		35		29
Total		210		214		18		328		332		107
Total:
Commercial & Agriculture		—		—		—		74		74		73
Commercial Real Estate:
Owner Occupied		187		187		7		980		980		5
Non-Owner Occupied		—		—		—		48		48		—
Residential Real Estate		526		555		11		946		975		29
Farm Real Estate		509		509		—		618		618		—
Total	$	1,222	$	1,251	$	18	$	2,666	$	2,695	$	107

The following tables include the average recorded investment and interest income recognized for impaired financing receivables as of, and for the years ended, December 31, 2021, 2020 and 2019.

For the year ended:	December 31, 2021				December 31, 2020
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial & Agriculture	$	15	$	—	$	88	$	4
Commercial Real Estate:
Owner Occupied		396		18		520		27
Non-Owner Occupied		23		1		243		16
Residential Real Estate		629		31		1,361		43
Farm Real Estate		569		24		647		26
Total	$	1,632	$	74	$	2,859	$	116

For the year ended:	December 31, 2019
	Average Recorded Investment		Interest Income Recognized
Commercial & Agriculture	$	367	$	33
Commercial Real Estate:
Owner Occupied		456		32
Non-Owner Occupied		308		20
Residential Real Estate		1,271		58
Farm Real Estate		683		29
Total	$	3,085	$	172

Foreclosed assets acquired in settlement of loans are carried at fair value less estimated costs to sell and are included in other assets on the Consolidated Balance Sheet. As of December 31, 2021, there were no foreclosed assets included in other assets. As of December 31, 2020, there were $31 of foreclosed assets included in other assets. As of December 31, 2020 and 2019, the Company had initiated formal foreclosure procedures on $293 and $741, respectively, of Residential Real Estate loans.

Changes in the amortizable yield for PCI loans were as follows, since acquisition:

	At December 31, 2021			At December 31, 2020
	(In Thousands)			(In Thousands)
Balance at beginning of period	$	225		$	255
Acquisition of PCI loans		—			—
Accretion		(77	)		(336	)
Transfers from non-accretable to accretable		69			306
Balance at end of period	$	217		$	225

The following table presents additional information regarding loans acquired and accounted for in accordance with ASC 310-30:

	At December 31, 2021		At December 31, 2020
	Acquired Loans with Specific Evidence of Deterioration of Credit Quality (ASC 310-30)		Acquired Loans with Specific Evidence of Deterioration of Credit Quality (ASC 310-30)
	(In Thousands)
Outstanding balance	$	512	$	687
Carrying amount		290		388

There was no allowance for loan losses recorded for acquired loans with or without specific evidence of deterioration in credit quality as of December 31, 2021 and 2020, respectively.

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Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

Other Comprehensive Income (Loss)

NOTE 5 - OTHER COMPREHENSIVE INCOME (LOSS)

The following table presents the components of other comprehensive income (loss), net of tax, as of December 31, 2021, 2020 and 2019:

	Before Tax			Tax Effect			Net of Tax
Year Ended December 31, 2021
Net unrealized Gains (Losses) on Investment Securities:
Other comprehensive income (loss) before reclassifications	$	(8,570	)	$	(1,799	)	$	(6,771	)
Amounts reclassified from accumulated other comprehensive income (loss)		(1	)		—			(1	)
Net Unrealized Gains (Losses) on Investment Securities		(8,571	)		(1,799	)		(6,772	)
Defined Benefit Plans:
Other comprehensive income (loss) before reclassifications		992			209			783
Amounts reclassified from accumulated other comprehensive income (loss)		240			50			190
Defined Benefit Plans, Net		1,232			259			973
Other Comprehensive Income	$	(7,339	)	$	(1,540	)	$	(5,799	)
Year Ended December 31, 2020
Net unrealized Gains (Losses) on Investment Securities:
Other comprehensive income (loss) before reclassifications	$	10,935		$	2,297		$	8,638
Amounts reclassified from accumulated other comprehensive income (loss)		(94	)		(20	)		(74	)
Net Unrealized Gains on Investment Securities		10,841			2,277			8,564
Defined Benefit Plans:
Other comprehensive income (loss) before reclassifications		(1,326	)		(279	)		(1,047	)
Amounts reclassified from accumulated other comprehensive income (loss)		289			61			228
Defined Benefit Plans, Net		(1,037	)		(218	)		(819	)
Other Comprehensive Income	$	9,804		$	2,059		$	7,745
Year Ended December 31, 2019
Net unrealized Gains (Losses) on Investment Securities:
Other comprehensive income (loss) before reclassifications	$	13,368		$	2,807		$	10,561
Amounts reclassified from accumulated other comprehensive income (loss)		(32	)		(7	)		(25	)
Net Unrealized Losses on Investment Securities		13,336			2,800			10,536
Defined Benefit Plans:
Other comprehensive income (loss) before reclassifications		(2,953	)		(620	)		(2,333	)
Amounts reclassified from accumulated other comprehensive income (loss)		156			33			123
Defined Benefit Plans, Net		(2,797	)		(587	)		(2,210	)
Other Comprehensive Loss	$	10,539		$	2,213		$	8,326

The following table presents the changes in each component of accumulated other comprehensive income (loss), net of tax, as of December 31, 2021, 2020 and 2019.

	For the Year Ended December 31, 2021									For the Year Ended December 31, 2020								For the Year Ended December 31, 2019
	Unrealized Gains and Losses on Available for Sale Securities			Defined Benefit Pension Items			Total			Unrealized Gains and Losses on Available for Sale Securities			Defined Benefit Pension Items			Total		Unrealized Gains and Losses on Available for Sale Securities			Defined Benefit Pension Items			Total
Beginning balance	$	21,447		$	(6,828	)	$	14,619		$	12,883		$	(6,009	)	$	6,874	$	2,347		$	(3,799	)	$	(1,452	)
Other comprehensive income (loss) before reclassifications		(6,771	)		783			(5,988	)		8,638			(1,047	)		7,591		10,561			(2,333	)		8,228
Amounts reclassified from accumulated other comprehensive income (loss)		(1	)		190			189			(74	)		228			154		(25	)		123			98
Net current-period other comprehensive income (loss)		(6,772	)		973			(5,799	)		8,564			(819	)		7,745		10,536			(2,210	)		8,326
Ending balance	$	14,675		$	(5,855	)	$	8,820		$	21,447		$	(6,828	)	$	14,619	$	12,883		$	(6,009	)	$	6,874

The following table presents the amounts reclassified out of each component of accumulated other comprehensive loss as of December 31, 2021, 2020 and 2019.

	Amount Reclassified from Accumulated Other Comprehensive Loss (a)
	For the year ended December 31,
Details about Accumulated Other Comprehensive Income (Loss) Components	2021			2020			2019			Affected Line Item in the Statement Where Net Income is Presented
Unrealized gains (losses) on available for sale securities	$	1		$	94		$	32		Net gain on sale of securities
Tax effect		—			(20	)		(7	)	Income taxes
		1			74			25
Amortization of defined benefit pension items
Actuarial losses		(240	)(b)		(289	)(b)		(156	)(b)	Other operating expenses
Tax effect		50			61			33		Income taxes
		(190	)		(228	)		(123	)
Total reclassifications for the period	$	(189	)	$	(154	)	$	(98	)

(a) Amounts in parentheses indicate expenses and other amounts indicate income.

(b) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost.

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Premises and Equipment

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Premises and Equipment

NOTE 6 - PREMISES AND EQUIPMENT

Year-end premises and equipment were as follows:

	At December 31,
	2021			2020
Land and improvements	$	6,970		$	6,879
Buildings and improvements		29,305			28,835
Furniture and equipment		23,786			22,849
Total		60,061			58,563
Accumulated depreciation		(37,616	)		(35,983	)
Premises and equipment, net	$	22,445		$	22,580

Depreciation expense was $1,976, $2,253 and $2,240 for 2021, 2020 and 2019, respectively.

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Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

NOTE 7 - GOODWILL AND INTANGIBLE ASSETS

There was no change in the carrying amount of goodwill of $76,851 for the year ended December 31, 2021 and December 31, 2020.

Management performs an evaluation of goodwill for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that the asset might be impaired. Management performed an evaluation of the Company’s goodwill during the fourth quarter of 2021. Based on this test, management concluded that the Company’s goodwill was not impaired at December 31, 2021.

Acquired intangible assets were as follows as of year-end.

	2021						2020
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Core deposit intangible assets(1):
Core deposit intangibles		8,527		3,588		4,939		14,792		8,963		5,829
Total core deposit intangible assets	$	8,527	$	3,588	$	4,939	$	14,792	$	8,963	$	5,829

(1) Excludes fully amortized core deposit intangible assets

Aggregate core deposit intangible amortization expense was $890, $913 and $945 for 2021, 2020 and 2019, respectively.

Activity for mortgage servicing rights (MSRs) and the related valuation allowance follows:

	2021			2020
Mortgage Servicing Rights:
Beginning of year	$	2,246		$	1,562
Additions		764			1,310
Disposals		—			—
Amortized to expense		572			524
Other Charges		—			—
Change in valuation allowance		(204	)		102
End of year	$	2,642		$	2,246
Valuation allowance:
Beginning of year	$	204		$	102
Additions expensed		261			162
Reductions credited to operations		(465	)		(60	)
Direct write-offs		—			—
End of year	$	—		$	204

The unpaid principal balance of mortgage loans serviced for third parties was $405,786 at December 31, 2021, compared to $353,473 at December 31, 2020 and $206,950 at December 31, 2019.

Aggregate mortgage servicing rights (MSRs) amortization was $572, $524 and $247 for 2021, 2020 and 2019, respectively.

Mortgage loan contractual servicing fees were $947, $634 and $502 for 2021, 2020 and 2019, respectively. Mortgage loan contractual servicing fees are included in Other income on the Consolidated Statements of Operations.

The fair value of servicing rights was $2,642 and $2,246 at year-end 2021 and 2020, respectively. Fair value at year-end 2021 was determined using a discount rate of 12.0%, prepayment speeds ranging from 8.0% to 35.0%, depending on the stratification of the specific right, and a weighted average default rate of 0.41%. Fair value at year-end 2020 was determined using a discount rate of 12.0%, prepayment speeds ranging from 12.0% to 50.0%, depending on the stratification of the specific right, and a default rate of 0.93%.

Estimated amortization expense for each of the next five years and thereafter is as follows:

	MSRs		Core deposit intangibles		Total
2022	$	137	$	868	$	1,005
2023		137		841		978
2024		137		804		941
2025		137		708		845
2026		135		670		805
Thereafter		1,959		1,048		3,007
	$	2,642	$	4,939	$	7,581

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Interest-Bearing Deposits

12 Months Ended

Dec. 31, 2021

Deposits [Abstract]

Interest-Bearing Deposits

NOTE 8 - INTEREST-BEARING DEPOSITS

Interest-bearing deposits as of December 31, 2021 and 2020 were as follows:

	2021		2020
Demand	$	537,510	$	410,139
Savings and Money markets		843,837		771,612
Certificates of Deposit:
$250 and over		55,011		70,989
Other		149,521		169,453
Individual Retirement Accounts		41,916		46,396
Total	$	1,627,795	$	1,468,589

Scheduled maturities of certificates of deposit, including IRAs at December 31, 2021 were as follows:

2022	$	173,834
2023		45,195
2024		18,810
2025		3,829
2026		3,596
Thereafter		1,184
Total	$	246,448

Deposits from the Company’s principal shareholders, officers, directors, and their affiliates at year-end 2021 and 2020 were $7,690 and $12,487, respectively.

As of December 31, 2021, CDs and IRAs totaling $58,367 met or exceeded the FDIC’s insurance limit of $250,000.

As of December 31, 2021, brokered deposits totaled $26,610.

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Short-Term Borrowings

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Short-Term Borrowings

NOTE 9 - SHORT-TERM BORROWINGS

Short-term borrowings, which consist of federal funds purchased and other short-term borrowings are summarized as follows:

	At December 31, 2021					At December 31, 2020
	Federal Funds Purchased			Short-term Borrowings		Federal Funds Purchased			Short-term Borrowings
Outstanding balance at year end	$	—		$	—	$	—		$	—
Maximum indebtedness during the year		50,000			—		50,000			102,700
Average balance during the year		137			—		228			8,151
Average rate paid during the year		0.73	%		—		0.35	%		1.64	%
Interest rate on year end balance		—			—		—			—

	At December 31, 2019
	Federal Funds Purchased			Short-term Borrowings
Outstanding balance at year end	$	—		$	101,500
Maximum indebtedness during the year		20,000			192,700
Average balance during the year		137			112,088
Average rate paid during the year		2.19	%		2.32	%
Interest rate on year end balance		—			1.63	%

Average balances during the year represent daily averages. Average interest rates represent interest expense divided by the related average balances.

These borrowing transactions can range from overnight to six months in maturity. At December 31, 2021 and 2020, there were no short-term borrowings with outstanding balances. The average maturity was one day at December 31, 2019.

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Federal Home Loan Bank Advances

12 Months Ended

Dec. 31, 2021

Advances from Federal Home Loan Banks [Abstract]

Federal Home Loan Bank Advances

NOTE 10 - FEDERAL HOME LOAN BANK ADVANCES

Long-term advances from the FHLB were $75,000 and $125,000 at December 31, 2021 and December 31, 2020, respectively. Outstanding balances have a maturity date of October 2029 with fixed rate of 1.03%. The average rate on outstanding advances was 1.03% at December 31, 2021. Outstanding advances are prepayable in whole only and are subject to a termination fee. The Company has one long-term advance, with a put options. The advance is in the amount of $75,000 and is puttable beginning October 2020 and every quarter thereafter.

During the second quarter of 2021, the Company prepaid a $50,000 advance with a rate of 2.05% and a remaining maturity of approximately 8 years at a pre-tax loss of approximately $3,717. The prepayment penalty of $3,717 was recorded in other operating expenses on the Consolidated Statements of Operations.

Scheduled principal reductions of FHLB advances outstanding at December 31, 2021 were as follows:

2029	$	75,000
Total	$	75,000

In addition to the borrowing, the Company had outstanding letters of credit with the FHLB totaling $21,300 and $20,000 at year-end 2021 and 2020, respectively, used for pledging to secure public funds. FHLB borrowings and the letters of credit were collateralized by FHLB stock and by $737,389 and $217,500 of residential mortgage loans under a blanket lien arrangement at year-end 2021 and 2020, respectively.

The Company had a FHLB maximum borrowing capacity of $677,834 as of December 31, 2021, with remaining borrowing capacity of approximately $581,534. The borrowing arrangement with the FHLB is subject to annual renewal. The maximum borrowing capacity is recalculated at least quarterly.

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Securities Sold Under Agreements to Repurchase

12 Months Ended

Dec. 31, 2021

Brokers and Dealers [Abstract]

Securities Sold Under Agreements to Repurchase

NOTE 11 - SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE 

Securities sold under agreements to repurchase are used to facilitate the needs of our customers as well as to facilitate our short-term funding needs. Securities sold under repurchase agreements are carried at the amount of cash received in association with the agreement. We continuously monitor the collateral levels and may be required, from time to time, to provide additional collateral based on the fair value of the underlying securities. Securities pledged as collateral under repurchase agreements are maintained with our safekeeping agents.

The following table presents detail regarding the securities pledged as collateral under repurchase agreements as of December 31, 2021 and 2020. All of the repurchase agreements are overnight agreements.

	December 31, 2021		December 31, 2020
Securities pledged for repurchase agreements:
U.S. Treasury securities	$	16,478	$	899
Obligations of U.S. government agencies		9,017		28,015
Total securities pledged	$	25,495	$	28,914
Gross amount of recognized liabilities for repurchase agreements	$	25,495	$	28,914
Amounts related to agreements not included in offsetting disclosures above	$	—	$	—

Information concerning securities sold under agreements to repurchase was as follows:

	2021			2020			2019
Outstanding balance at year end	$	25,495		$	28,914		$	18,674
Average balance during the year		24,390			24,390			18,321
Average interest rate during the year		0.09	%		0.10	%		0.10	%
Maximum month-end balance during the year	$	34,200		$	31,885		$	21,970
Weighted average interest rate at year end		0.05	%		0.10	%		0.10	%

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Subordinated Debentures

12 Months Ended

Dec. 31, 2021

Brokers and Dealers [Abstract]

Subordinated Debentures

NOTE 12 - SUBORDINATED DEBENTURES

On November 30, 2021, the Company entered into a Subordinated Note Purchase Agreement pursuant to which the Company sold and issued $75,000 aggregate principal amount of its 3.25% Fixed-to-Floating Rate Subordinated Notes due 2031. The Notes have a stated maturity of December 31, 2031.

The Notes will initially bear interest at a fixed rate of 3.25% per annum, from and including November 30, 2021, to but excluding December 1, 2026, with interest payable semi-annually in arrears. From and including December 1, 2026, to but excluding the stated maturity date or early redemption date, the interest rate will reset quarterly to an annual floating rate equal to the then-current benchmark rate, which will initially be the three-month Secured Overnight Financing Rate (SOFR) plus 219 basis points, with interest during such period payable quarterly in arrears. If three-month SOFR cannot be determined during the applicable floating rate period, a different index will be determined and used in accordance with the terms of the Notes and underlying Indenture.

Prior to December 1, 2026, the Company may redeem the Notes, in whole but not in part, only under certain limited circumstances as set forth in the Indenture. On or after December 1, 2026, the Company may, at its option, redeem the Notes, in whole or in part, on any interest payment date, subject to the receipt of any required regulatory approvals. Any redemption by the Company would be at a redemption price equal to 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest to but excluding the date of redemption. 

Trusts formed by the Company in March of 2002 and March of 2003 issued floating rate trust preferred securities, in the amounts of $5,000 and $7,500, respectively, through special purpose entities as part of pooled offerings of such securities. The Company issued subordinated debentures to the trusts in exchange for the proceeds of the offerings, which debentures represent the sole assets of the trusts. The Company may redeem the subordinated debentures, in whole but not in part, at face value. In March 2007, the Company elected to redeem and refinance the $5,000 floating rate subordinated debenture. The refinancing was done at face value and resulted in a 2.00% reduction in the floating rate. The new subordinated debenture has a 30-year maturity and is redeemable, in whole or in part, anytime without penalty. The replacement subordinated debenture does not have any deferred issuance cost associated with it. At December 31, 2021, the interest rate on the $7,500 debenture was 3.28% and the interest rate on the $5,000 debenture was 1.72%. Both debentures are indexed to the 3-month LIBOR.

Additionally, the Company formed an additional trust in September of 2004 that issued $12,500 of 6.05% fixed rate trust preferred securities for five years, then becoming floating rate trust preferred securities, through a special purpose entity as part of a pooled offering of such securities. The Company issued subordinated debentures to the trusts in exchange for the proceeds of the offerings, which debentures represent the sole assets of the trusts. The Company may redeem the subordinated debentures at face value without penalty. At December 31, 2021, the interest rate on the $12,500 subordinated debenture was 2.37%. The debenture is indexed to the 3-month LIBOR.

Finally, the Company acquired two additional trust preferred securities as part of its acquisition of Futura Banc Corp (Futura) in December 2007. Futura TPF Trust I and Futura TPF Trust II were formed in June of 2005 in the amounts of $2,500 and $1,927, respectively. Futura had issued subordinated debentures to the trusts in exchange for ownership of all of the common security of the trusts and the proceeds of the preferred securities sold by the trusts. The Company may redeem the subordinated debentures, in whole or in part, in a principal amount with integral multiples of $1,000, at 100% of the principal amount, plus accrued and unpaid interest. The subordinated debentures mature on June 15, 2035. The subordinated debentures are also redeemable in whole or in part from time to time, upon the occurrence of specific events defined within the trust indenture. At December 31, 2021, the interest rate on the $2,500 subordinated debenture was variable at 1.78%. The debenture is indexed to the 3-month LIBOR In June 2010, the rate on the $1,927 subordinated debenture switched from a fixed rate to a floating rate. At December 31, 2021, the interest rate on the $1,927 subordinated debenture was 1.78%. The debenture is indexed to the 3-month LIBOR.

Subordinated debentures in the amount of $102,813 will mature 5 years and thereafter.

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Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 13 - INCOME TAXES

Income taxes were as follows for the years ended December 31:

	2021		2020			2019
Current	$	5,111	$	6,947		$	4,713
State		587		270			307
Deferred		1,319		(2,277	)		663
Income taxes	$	7,017	$	4,940		$	5,683

Effective tax rates differed from the statutory federal income tax rate of 21% in 2021, 2020 and 2019 due to the following:

	2021			2020			2019
Income taxes computed at the statutory federal tax rate	$	9,988		$	7,798		$	8,308
Add (subtract) tax effect of:
Nontaxable interest income, net of nondeductible interest expense		(1,315	)		(1,293	)		(1,194	)
Low income housing tax credit		(1,402	)		(1,186	)		(903	)
Cash surrender value of BOLI		(252	)		(205	)		(211	)
Change in tax position BOLI		—			—			(353	)
Other		(2	)		(174	)		36
Income tax expense	$	7,017		$	4,940		$	5,683

Year-end deferred tax assets and liabilities were due to the following:

	2021			2020
Deferred tax assets
Allowance for loan losses	$	5,595		$	5,256
Deferred compensation		1,213			1,201
Pension costs		56			304
Intangible assets		231			312
Net operating loss carryforward		—			509
Deferred loan fees		614			1,260
Other		713			745
Deferred tax asset		8,422			9,587
Deferred tax liabilities
Tax depreciation in excess of book depreciation		(973	)		(851	)
Discount accretion on securities		(86	)		(10	)
FHLB stock dividends		(969	)		(969	)
Unrealized gain on securities available for sale		(3,806	)		(5,606	)
Prepaids		(276	)		(325	)
Other		(1,243	)		(979	)
Deferred tax liability		(7,353	)		(8,740	)
Net deferred tax asset	$	1,069		$	847

No valuation allowance was established at December 31, 2021 and 2020, due to the Company’s ability to carryforward net operating losses to taxes paid in future years and certain tax strategies, coupled with the anticipated future income as evidenced by the Company’s earning potential.

The Company and its subsidiaries are subject to U.S. federal income tax. The Company is subject to tax in Ohio based upon its net worth and in Indiana based upon its net income.

There is currently no liability for uncertain tax positions and no known unrecognized tax benefits. The Company’s federal tax returns for taxable years through 2017 have been closed for purposes of examination by the Internal Revenue Service.

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Retirement Plans

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

Retirement Plans

NOTE 14 - RETIREMENT PLANS

The Company sponsors a savings and retirement 401(k) plan, which covers all employees who meet certain eligibility requirements and who choose to participate in the plan. The matching contribution to the 401(k) plan was $1,258, $1,226 and $1,074 in 2021, 2020 and 2019, respectively. The Company’s matching contribution is 100% of an employee’s first three percent contributed and 50% of the next two percent contributed.

The Company also sponsors a pension plan which is a noncontributory defined benefit retirement plan for all employees who have attained the age of 20 1/2, completed six months of service and work 1,000 or more hours per year. Annual payments, subject to the maximum amount deductible for federal income tax purposes, are made to a pension trust fund. In 2006, the Company amended the pension plan to provide that no employee could be added as a participant to the pension plan after December 31, 2006. In April 2014, the Company amended the pension plan again to provide that no additional benefits would accrue beyond April 30, 2014.

In October 2015, the Company, on behalf of it and its subsidiaries, entered into Pension Shortfall Agreements (the “Shortfall Agreements”) with ten employees of Civista. When the Company ceased accruals to its defined benefit pension plan on April 30, 2014, the circumstances of some participants with limited periods until their anticipated retirement dates would not permit them to use other available alternatives to make up for the shortfall in their expected pension. The Company calculated the total amount of the shortfall for each of the referenced individuals after considering its contributions to other retirement benefits. Pension shortfall expense was $130 in 2021, $130 in 2020 and $161 in 2019. Included in pension shortfall expense was interest expense, totaling $9, $9 and $20 in 2021, 2020 and 2019, respectively, which was also recorded in and credited to the accounts of the ten individuals covered by this plan.

Information about the pension plan is as follows:

	2021			2020
Change in benefit obligation:
Beginning benefit obligation	$	16,656		$	15,570
Service cost		—			—
Interest cost		378			484
Curtailment gain		—			—
Settlement loss		—			—
Actuarial (gain)/loss		(921	)		1,898
Benefits paid		(711	)		(1,296	)
Settlement payments		(18	)		—
Ending benefit obligation		15,384			16,656
Change in plan assets, at fair value:
Beginning plan assets		15,257			15,183
Actual return		574			1,370
Employer contribution		—			—
Benefits paid		(711	)		(1,296	)
Settlement payments		—			—
Administrative expenses		—			—
Ending plan assets		15,120			15,257
Funded status at end of year	$	(264	)	$	(1,399	)

Amounts recognized in accumulated other comprehensive income (loss) at December 31, consist of unrecognized actuarial loss of $5,855, net of $1,556 tax in 2021 and $6,828, net of $1,815 tax in 2020.

The accumulated benefit obligation for the defined benefit pension plan was $15,384 at December 31, 2021 and $16,656 at December 31, 2020.

The components of net periodic pension expense were as follows:

	2021			2020			2019
Service cost	$	—		$	—		$	—
Interest cost		378			484			479
Expected return on plan assets		(574	)		(748	)		(811	)
Net amortization and deferral		240			289			156
Net periodic pension cost (benefit)		44			25			(176	)
Additional loss due to settlement		—			—			0
Total pension cost (benefit)	$	44		$	25		$	(176	)
Net loss (gain) recognized in other comprehensive income	$	(854	)	$	986		$	2,798
Total recognized in net periodic benefit cost and other comprehensive loss (before tax)	$	(810	)	$	1,011		$	2,622

The components of net periodic benefit cost other than the service cost component are included in the line item “other operating expenses” in the Consolidated Statement of Operations.

The estimated net loss for the defined benefit pension plan that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year is $240. The Company incurred settlement costs in 2021, 2020 and 2019 of $(18), $0 and $0, respectively.

The weighted average assumptions used to determine benefit obligations at year-end were as follows:

	2021			2020			2019
Discount rate on benefit obligation		2.74	%		2.39	%		3.13	%
Long-term rate of return on plan assets		3.84	%		4.44	%		4.96	%
Rate of compensation increase		0.00	%		0.00	%		0.00	%

The weighted average assumptions used to determine net periodic pension cost were as follows:

	2021			2020			2019
Discount rate on benefit obligation		2.39	%		3.13	%		4.14	%
Long-term rate of return on plan assets		4.44	%		4.96	%		7.00	%
Rate of compensation increase		0.00	%		0.00	%		0.00	%

The Company uses long-term market rates to determine the discount rate on the benefit obligation. Declines in the discount rate lead to increases in the actuarial loss related to the benefit obligation.

The expectation for long-term rate of return on the pension assets and the expected rate of compensation increases are reviewed periodically by management in consultation with outside actuaries and primary

investment consultants. Factors considered in setting and adjusting these rates are historic and projected rates of return on the portfolio and historic and estimated rates of increases of compensation. Since the pension plan is frozen, the rate of compensation increase used to determine the benefit obligation for 2021, 2020 and 2019 was zero.

The Company’s pension plan asset allocation at year-end 2021 and 2020 and target allocation for 2022 by asset category are as follows:

	Target   Allocation			Percentage of Plan Assets at Year-end
Asset Category	2022			2021			2020
Equity securities		0-30	%		20.0	%		20.0	%
Debt securities		70-100			80.0			80.0
Total					100.0	%		100.0	%

The Company developed the pension plan investment policies and strategies for plan assets with its pension management firm. The assets are currently invested in seven diversified investment funds, which include four equity funds and three bond funds. The long-term guidelines from above were created to maximize the return on portfolio assets while reducing the risk of the portfolio. The management firm may allocate assets among the separate accounts within the established long-term guidelines. Transfers among these accounts will be at the management firm’s discretion based on their investment outlook and the investment strategies that are outlined at periodic meetings with the Company. The expected long-term rate of return on the plan assets was 3.84% in 2021 and 4.44% in 2020. This return is based on the expected return for each of the asset categories, weighted based on the target allocation for each class.

The Company does not expect to make any contribution to its pension plan in 2022. Employer contributions totaled $0 in 2021 and 2020. A decrease in the benefit obligations and actuarial gains led to a decrease in the deficit from $1,399 at December 31, 2020 to a deficit of $264 at December 31, 2021.

Common/Collective Trust Funds

Valued at the daily NAV as reported by the funds. These funds are not traded in an active market or exchange, and the NAV per unit is calculated by dividing the net assets of the fund by the number of units outstanding, which includes observable inputs. The method described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Plan believes its valuation method is appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

Certain investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient are not required to be categorized in the fair value hierarchy tables.

Fair Value of Investments in Entities That Use NAV

The following table summarizes investments measured at fair value based on NAV per share as of December 31, 2021 and 2020, respectively:

December 31, 2021	Fair Value		Unfunded   Commitments		Redemption Frequency (if currently eligible)		Redemption   Notice Period
Common/collective trust funds	$	15,120		N/A		Daily		Daily

December 31, 2020	Fair Value		Unfunded   Commitments		Redemption Frequency (if currently eligible)		Redemption   Notice Period
Common/collective trust funds	$	15,257		N/A		Daily		Daily

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Pension Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

Expected benefit payments, which reflect expected future service, are as follows:

2022	$	246
2023		288
2024		327
2025		391
2026		491
2027 through 2031		3,100
Total	$	4,843

Supplemental Retirement Plan

Civista established a supplemental retirement plan (“SERP”) in 2013, which covers key members of management. Under the SERP, participants will receive annually, following retirement, a percentage of their base compensations at the time of their retirement for a maximum of ten years. The SERP liability recorded at December 31, 2021, was $3,334, compared to $3,097 at December 31, 2020. The expense related to the SERP was $404, $429 and $394 for 2021, 2020 and 2019, respectively. Distributions to participants made in 2021, 2020 and 2019 totaled $167, $168, and $128, respectively.

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Equity Incentive Plan

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Equity Incentive Plan

NOTE 15 - EQUITY INCENTIVE PLAN

At the Company’s 2014 annual meeting, the shareholders adopted the Company’s 2014 Incentive Plan (“2014 Incentive Plan”). The 2014 Incentive Plan authorizes the Company to grant options, stock awards, stock units and other awards for up to 375,000 common shares of the Company. There were 154,123 shares available for grants under this plan at December 31, 2021.

No options had been granted under the 2014 Incentive Plan as of December 31, 2021 and 2020.

In recent years, the Board of Directors has awarded restricted common shares to senior officers of the Company. The restricted shares vest ratably over a three-year period following the grant date. The product of the number of restricted shares granted and the grant date market price of the Company’s common shares determines the fair value of restricted shares under the Company’s 2014 Incentive Plan. Management recognizes compensation expense for the fair value of restricted shares on a straight-line basis over the requisite service period for the entire award.

During the twelve months ended December 31, 2021, 2020 and 2019, directors of the Company’s banking subsidiary, Civista, were paid a retainer in the form of non-restricted common shares of the Company. The aggregate common shares of 8,792, 14,266 and 8,946, respectively were issued to Civista directors as payment of their retainer for their service on the Civista Board of Directors. The issuances were expensed in their entirety when the shares were issued in the amounts of $196, $196 and $196, respectively.

The Company includes share-based compensation for employees as “Compensation expense” in the Consolidated Statements of Operations.

The following is a summary of the status of the Company’s restricted shares, and changes therein during the twelve months ended December 31, 2021:

	December 31, 2021
	Number of Restricted Shares			Weighted Average   Grant Date   Fair Value
Nonvested at beginning of period		54,274		$	20.90
Granted		39,139			19.17
Vested		(20,275	)		20.35
Forfeited		(3,298	)		19.74
Nonvested at end of period		69,840			20.14

The following is a summary of the status of the Company’s awarded restricted shares as of December 31, 2021:

At December 31, 2021
Date of Award	Shares		Remaining Expense		Remaining Vesting     Period (Years)
March 20, 2017		1,198	$	—		0.00
April 10, 2018		3,114		31		1.00
March 14, 2019		3,174		—		0.00
March 14, 2019		6,560		79		2.00
March 14, 2020		8,595		85		1.00
March 14, 2020		10,390		148		3.00
March 3, 2021		16,277		226		4.00
March 3, 2021		20,532		262		2.00
		69,840	$	831		2.30

During the twelve months ended December 31, 2021, 2020 and 2019, the Company recorded share-based compensation expense of $506, $421 and $335, respectively, and director retainer fees of $196, $196 and $196, respectively, for shares granted under the 2014 Incentive Plan. At December 31, 2021, the total compensation cost related to unvested awards not yet recognized was $831, which is expected to be recognized over the weighted average remaining life of the grants of 2.30 years.

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Fair Value Measurement

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurement

NOTE 16 - FAIR VALUE MEASUREMENT

U.S. generally accepted accounting principles establish a hierarchal disclosure framework associated with the level of observable pricing utilized in measuring assets and liabilities at fair value. The three broad levels defined by the hierarchy are as follows: Level 1: Quoted prices for identical assets in active markets that are identifiable on the measurement date; Level 2: Significant other observable inputs, such as quoted prices for similar assets, quoted prices in markets that are not active and other inputs that are observable or can be corroborated by observable market data; Level 3: Significant unobservable inputs that reflect the Company’s own view about the assumptions that market participants would use in pricing an asset.

Securities: The fair values of securities available for sale are determined by matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs).

Equity securities: The Company has two types of equity securities, one is not actively traded in an open market, while the other is listed on an exchange and is less frequently traded. The fair value of the equity security available for sale not actively traded in an open market is determined by using market data inputs for similar securities that are observable. (Level 2 inputs).

Fair value swap asset/liability: The fair value of the swap asset and liability is based on an external derivative model using data inputs as of the valuation date and classified Level 2.

Impaired loans: The Company generally measures impairment on impaired loans based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the properties. In some cases, management may adjust the appraised value due to the age of the appraisal, changes in market conditions, or observable deterioration of the property since the appraisal was completed. Additionally, management makes estimates about expected costs to sell the property which are also included in the net realizable value. If the fair value of the collateral dependent loan is less than the carrying amount of the loan, a specific reserve for the loan is made in the allowance for loan losses or a charge-off is taken to reduce the loan to the fair value of the collateral (less estimated selling costs) and the loan is included in the table below as a Level 3 measurement.

Mortgage servicing rights: Mortgage servicing rights do not trade in an active market with readily observable market data. As a result, the Company estimates the fair value of mortgage servicing rights by using a discounted cash flow model to calculate the present value of estimated future net servicing income. The Company stratifies its mortgage servicing portfolio on the basis of loan type. The assumptions used in the discounted cash flow model are those that the Company believes market participants would use in estimating future net servicing income. Significant assumptions in the valuation of mortgage servicing rights include estimated loan repayment rates, the discount rate, servicing costs, and the timing of cash flows, among other factors. Mortgage servicing rights are classified as Level 3 measurements due to the use of significant unobservable inputs, as well as significant management judgment and estimation.

Other real estate owned: OREO is carried at the lower of cost or fair value, which is measured at the date foreclosure. If the fair value of the collateral exceeds the carrying amount of the loan, no charge-off or adjustment is necessary, the loan is not considered to be carried at fair value, and is therefore not included in the table below. If the fair value of the collateral is less than the carrying amount of the loan, management will charge the loan down to its estimated realizable value. Management may adjust the appraised value due to the age of the appraisal, changes in market conditions, or observable deterioration of the property since the appraisal was completed. In these cases, the properties are categorized in the below table as Level 3 measurements since these adjustments are considered to be unobservable inputs. Income and expenses from operations are included in other operating expenses. Further declines in the fair value of the collateral subsequent to foreclosure are included in net gain on sale of other real estate owned.

Assets and liabilities measured at fair value are summarized below.

Fair Value Measurements at December 31, 2021 using:

	(Level 1)		(Level 2)		(Level 3)
Assets measured at fair value on a recurring basis:
Securities available for sale
U.S. Treasury securities and obligations of U.S. Government agencies	$	—	$	47,890	$	—
Obligations of states and political subdivisions		—		298,836		—
Mortgage-backed securities in government sponsored entities		—		213,148		—
Total securities available for sale		—		559,874		—
Equity securities		—		1,072		—
Swap asset		—		11,072		—
Liabilities measured at fair value on a recurring basis:
Swap liability		—		11,072		—
Assets measured at fair value on a nonrecurring basis:
Impaired Loans	$	—	$	—	$	11
Mortgage servicing rights		—		—		2,642

Fair Value Measurements at December 31, 2020 using:

	(Level 1)		(Level 2)		(Level 3)
Assets measured at fair value on a recurring basis:
Securities available for sale
U.S. Treasury securities and obligations of U.S. Government agencies	$	—	$	21,693	$	—
Obligations of states and political subdivisions		—		229,012		—
Mortgage-backed securities in government sponsored entities		—		112,759		—
Total securities available for sale		—		363,464		—
Equity securities		—		886		—
Swap asset		—		21,700		—
Liabilities measured at fair value on a recurring basis:
Swap liability		—		21,764		—
Assets measured at fair value on a nonrecurring basis:
Impaired Loans	$	—	$	—	$	1
Mortgage servicing rights		—		—		2,246
Other Real Estate Owned		—		—		31

The following tables presents quantitative information about the Level 3 significant unobservable inputs for assets and liabilities measured at fair value on a nonrecurring basis at December 31, 2021 and 2020.

	Quantitative Information about Level 3 Fair Value Measurements
December 31, 2021	Fair Value		Valuation Technique	Unobservable Input	Range	Weighted Average
Impaired loans	$	11	Appraisal of collateral	Appraisal adjustments	10%	10%
				Holding period	24 months	24 months
	Quantitative Information about Level 3 Fair Value Measurements
December 31, 2020	Fair Value		Valuation Technique	Unobservable Input	Range	Weighted Average
Impaired loans	$	1	Appraisal of collateral	Appraisal adjustments	0% - 30%	19%
				Holding period	23 months	23 months
Other real estate owned	$	31	Appraisal of collateral	Appraisal adjustments	10%	10%

The carrying amount and fair value of financial instruments carried at amortized cost were as follows:

December 31, 2021	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from financial institutions	$	265,969	$	265,969	$	265,969		$        —	$	—
Other securities		17,011		17,011		17,011		—		—
Loans, held for sale		1,972		2,011		2,011		—		—
Loans, net of allowance for loan losses		1,971,238		1,945,638		—		—		1,945,638
Bank owned life insurance		47,176		47,176		47,176		—		—
Accrued interest receivable		7,385		7,385		7,385		—		—
Financial Liabilities:
Nonmaturing deposits		2,170,253		2,170,253		2,170,253		—		—
Time deposits		246,448		247,053		—		—		247,053
Long-term FHLB advances		75,000		75,930		—		—		75,930
Securities sold under agreement to repurchase		25,495		25,495		25,495		—		—
Subordinated debentures		102,813		111,118		—		—		111,118
Accrued interest payable		315		315		315		—		—

December 31, 2020	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from financial institutions	$	139,522	$	139,522	$	139,522	$	—	$	—
Other securities		20,537		20,537		20,537		—		—
Loans, held for sale		7,001		7,141		7,141		—		—
Loans, net of allowance for loan losses		2,032,474		2,063,249		—		—		2,063,249
Bank owned life insurance		46,976		45,976		45,976		—		—
Accrued interest receivable		9,421		9,421		9,421		—		—
Financial Liabilities:
Nonmaturing deposits		1,902,560		1,902,560		1,902,560		—		—
Time deposits		286,838		288,298		—		—		288,298
Long-term FHLB advances		125,000		130,942		—		—		130,942
Securities sold under agreement to repurchase		28,914		28,914		28,914		—		—
Subordinated debentures		29,427		31,479		—		—		31,479
Accrued interest payable		204		204		204		—		—

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Commitments, Contingencies and Off-Balance-Sheet Risk

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments, Contingencies and Off-Balance-Sheet Risk

NOTE 17 - COMMITMENTS, CONTINGENCIES AND OFF-BALANCE-SHEET RISK

Some financial instruments, such as loan commitments, credit lines, letters of credit, and overdraft protection are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Off-balance-sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment.

The contractual amount of financial instruments with off-balance-sheet risk was as follows at year-end.

	2021				2020
	Fixed Rate		Variable Rate		Fixed Rate		Variable Rate
Commitments to extend credit:
Lines of credit and construction loans	$	33,542	$	455,777	$	38,474	$	427,864
Overdraft protection		7		54,034		6		41,707
Letters of credit		615		731		615		986
	$	34,164	$	510,542	$	39,095	$	470,557

Commitments to make loans are generally made for a period of one year or less. Fixed-rate loan commitments included above had interest rates ranging from 3.25% to 8.00% at December 31, 2021 and 3.50% to 8.00% at December 31, 2020. Maturities extend up to 30 years.

Civista is required to maintain certain reserve balances on hand in accordance with the Federal Reserve Board requirements. The average reserve balance maintained in accordance with such requirements was $0 on December 31, 2021 and December 31, 2020, respectively.

CBI and Civista are parties to various claims and proceedings arising in the normal course of business. Management, after consultation with legal counsel, believes that the liabilities, if any, arising from such proceedings and claims will not be material to the consolidated balance sheet or results of operations.

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Capital Requirements and Restriction on Retained Earnings

12 Months Ended

Dec. 31, 2021

Capital Requirements And Restriction On Retained Earnings [Abstract]

Capital Requirements and Restriction on Retained Earnings

NOTE 18 - CAPITAL REQUIREMENTS AND RESTRICTION ON RETAINED EARNINGS

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, 2021, that the Companies met all capital adequacy requirements to which they were subject.

As of December 31, 2021, and 2020, 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 the Companies 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 the institution’s category.

The Company’s and Civista’s actual capital levels and minimum required capital levels at December 31, 2021 and 2020 were as follows:

	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Purposes
	Amount		Ratio			Amount		Ratio			Amount		Ratio
2021
Total Risk Based Capital
Consolidated	$	394,164		19.2	%	$	164,498		8.0	%		n/a		n/a
Civista		338,383		16.5			164,483		8.0		$	205,604		10.0	%
Tier I Risk Based Capital
Consolidated		295,064		14.3			123,373		6.0			n/a		n/a
Civista		312,671		15.2			123,362		6.0			164,483		8.0
CET1 Risk Based Capital
Consolidated		265,637		12.9			92,530		4.5			n/a		n/a
Civista		312,671		15.2			92,522		4.5			133,642		6.5
Leverage
Consolidated		295,064		10.2			115,543		4.0			n/a		n/a
Civista		312,671		10.8			115,408		4.0			144,260		5.0
2020
Total Risk Based Capital
Consolidated	$	307,504		16.0	%	$	153,810		8.0	%		n/a		n/a
Civista		277,429		14.4			153,765		8.0		$	192,206		10.0	%
Tier I Risk Based Capital
Consolidated		283,459		14.7			115,358		6.0			n/a		n/a
Civista		252,304		13.1			115,323		6.0			153,765		8.0
CET1 Risk Based Capital
Consolidated		254,032		13.2			86,518		4.5			n/a		n/a
Civista		241,891		12.6			86,493		4.5			124,934		6.5
Leverage
Consolidated		283,459		10.8			105,279		4.0			n/a		n/a
Civista		252,304		9.6			105,029		4.0			131,286		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 requirements. At December 31, 2021, Civista had $59,772 of net profits available to pay dividends to CBI without requiring regulatory approval.

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Parent Company Only Condensed Financial Information

12 Months Ended

Dec. 31, 2021

Condensed Financial Information Disclosure [Abstract]

Parent Company Only Condensed Financial Information

NOTE 19 - PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION

Condensed financial information of CBI follows:

	December 31,
Condensed Balance Sheets	2021			2020
Assets:
Cash	$	45,800		$	19,446
Equity securities		1,072			886
Investment in bank subsidiary		408,255			344,948
Investment in nonbank subsidiaries		3,474			16,017
Other assets		2,016			1,575
Total assets	$	460,617		$	382,872
Liabilities:
Deferred income taxes and other liabilities	$	2,592		$	3,337
Subordinated debentures		102,813			29,427
Total liabilities		105,405			32,764
Shareholders’ Equity:
Common stock		277,741			277,039
Accumulated earnings		125,558			93,048
Treasury Stock		(56,907	)		(34,598	)
Accumulated other comprehensive income		8,820			14,619
Total shareholders’ equity		355,212			350,108
Total liabilities and shareholders’ equity	$	460,617		$	382,872

	For the years ended December 31,
Condensed Statements of Operations	2021			2020			2019
Dividends from bank subsidiaries	$	19,900		$	15,300		$	13,300
Dividends from non-bank subsidiaries		1,000			440			—
Interest expense		(956	)		(945	)		(1,423	)
Pension expense		(47	)		(25	)		176
Other expense, net		(1,004	)		(1,241	)		(1,107	)
Income (loss) before equity in undistributed net earnings of subsidiaries		18,893			13,529			10,946
Income tax benefit		425			475			494
Equity in undistributed net earnings of subsidiaries		21,228			18,188			22,438
Net income	$	40,546		$	32,192		$	33,878
Comprehensive income	$	34,747		$	39,937		$	42,204

	For the years ended December 31,
Condensed Statements of Cash Flows	2021			2020			2019
Operating activities:
Net income	$	40,546		$	32,192		$	33,878
Adjustment to reconcile net income to net cash from operating activities:
Change in other assets and other liabilities		2,495			1,925			4,437
Equity in undistributed net earnings of subsidiaries		(21,228	)		(18,188	)		(22,438	)
Net cash from (used for) operating activities		21,813			15,929			15,877
Investing activities:
Disposal of minority interest		11,500			—			—
Disposal of investment in subsidiary		—			—			41
Acquisition and additional capitalization of subsidiary, net of cash acquired		(50,000	)		—			—
Net cash from (used for) investing activities		(38,500	)		—			41
Financing activities:
Cash paid on fractional shares on preferred stock conversion to common stock		—			—			(2	)
Proceeds from subordinated debenture, net of issuance costs		73,386			—			—
Purchase of treasury stock		(22,309	)		(13,454	)		(3,909	)
Payment to repurchase series B preferred stock		—			—			(402	)
Cash dividends paid		(8,036	)		(7,118	)		(7,194	)
Net cash used for financing activities		43,041			(20,572	)		(11,507	)
Net change in cash and cash equivalents		26,354			(4,643	)		4,411
Cash and cash equivalents at beginning of year		19,446			24,089			19,678
Cash and cash equivalents at end of year	$	45,800		$	19,446		$	24,089

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Preferred Shares

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

Preferred Shares

NOTE 20 - PREFERRED SHARES

On December 19, 2013, the Company completed the sale of 1,000,000 depositary shares, each representing a 1/40th ownership interest in a 6.50% Noncumulative Redeemable Convertible Perpetual Preferred Share, Series B, of the Company, with a liquidation preference of $1,000 per share (equivalent to $25.00 per depositary share). The Company sold the maximum of 1,000,000 depositary shares in the offering, resulting in gross proceeds to the Company of $25,000.

Using proceeds from the sale of the depositary shares, the Company redeemed all of its outstanding Series A Preferred Shares for an aggregate purchase price of $22,857, which redemption was completed as of February 15, 2014.

All outstanding depositary shares were redeemed or converted into common shares by December 20, 2019.

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Earnings per Common Share

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Earnings per Common Share

NOTE 21 - EARNINGS PER COMMON SHARE

The factors used in the earnings per share computation follow.

	2021		2020		2019
Basic
Net income	$	40,546	$	32,192	$	33,878
Preferred stock dividends		—		—		647
Less allocation of earnings and dividends to participating securities		173		98		87
Net income available to common shareholders—basic	$	40,373	$	32,094	$	33,144
Weighted average common shares outstanding		15,408,863		16,129,875		15,652,881
Less average participating securities		65,648		49,012		40,013
Weighted average number of shares outstanding used in the calculation of basic earnings per common share		15,343,215		16,080,863		15,612,868
Basic earnings per share	$	2.63	$	2.00	$	2.12
Diluted
Net income available to common shareholders—basic	$	40,373	$	32,094	$	33,144
Preferred stock dividends on convertible preferred stock		—		—		647
Net income available to common shareholders—diluted	$	40,373	$	32,094	$	33,791
Weighted average common shares outstanding used in the calculation of earnings per common share basic		15,343,215		16,080,863		15,612,868
Add: dilutive effects of convertible preferred shares		—		—		1,198,859
Average shares and dilutive potential common shares outstanding—diluted		15,343,215		16,080,863		16,851,740
Diluted earnings per share	$	2.63	$	2.00	$	2.01

The presentation for earnings per common share for prior periods was revised to present under the two-class method. Earnings per common share for prior periods was not impacted.

Basic earnings per common share are calculated by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share include the dilutive effect, if any, of additional potential common shares issuable under the equity incentive plan, computed using the treasury stock method, and the impact of the Company’s convertible preferred shares using the “if converted” method.

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Derivatives

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

NOTE 22 - DERIVATIVES

To accommodate customer need and to support the Company’s asset/liability positioning, on occasion we enter into interest rate swaps with a customer and a bank counterparty. The interest rate swaps are free-standing derivatives and are recorded at fair value. The Company enters into a floating rate loan and a fixed rate swap with our customer. Simultaneously, the Company enters into an offsetting fixed rate swap with a bank counterparty. In connection with each swap transaction, the Company agrees to pay interest to the customer on a notional amount at a variable interest rate and receive interest from the customer on the same notional amount at a fixed interest rate. At the same time, the Company agrees to pay a bank counterparty the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. These transactions allow the Company’s customer to effectively convert variable rate loans to fixed rate loans. Since the Company acts as an intermediary for its customer, changes in the fair value of the underlying derivative contracts offset each other and do not significantly impact the Company’s results of operations unless a significant difference in credit risk emerges between the counterparties at either end of one of the swap contracts. None of the Company’s derivatives are designated as hedging instruments.

The Company presents derivative positions gross on the balance sheet for customers and net for financial institution counterparty positions subject to master netting arrangements. The following table reflects the derivatives recorded on the balance sheet as of December 31:

	2021					2020
	Notional Amount		Fair Value			Notional Amount		Fair Value
Included in other assets:
Interest rate swaps with loan customers in an asset position	$	173,490	$	11,072		$	244,748	$	21,700
Total included in other assets			$	11,072				$	21,700
Included in accrued expenses and other liabilities:
Interest rate swaps with loan customers in a liability position	$	71,328	$	1,628		$	—	$	—
Counterparty positions with financial institutions in an asset position		71,328		(1,628	)		—		—
Counterparty positions with financial institutions in a liability position		173,490		11,072			244,748		21,764
Total included in accrued expenses and other liabilities			$	11,072				$	21,764
Gross notional positions with customers	$	244,818				$	244,748
Gross notional positions with financial institution counterparties	$	244,818				$	244,748

The effect of swap fair value changes on the Consolidated Statement of Operations for the years ended December 31, 2021, 2020 and 2019 are as follows:

Derivatives Not Designated	Location of Gain or (Loss) Recognized in	Amount of Gain or (Loss) Recognized in Income on Derivatives
as Hedging Instruments	Income on Derivative	2021		2020		2019
Interest rate swaps related to customer loans	Other income		$                64		$                (64)		$                —
Total			$                64		$                (64)		$                —

The Company monitors and controls all derivative products with a comprehensive Board of Director approved commercial loan swap policy. All hedge transactions must be approved in advance by the Lenders Loan Committee or the Directors Loan Committee of the Board of Directors. The Company classifies changes in the fair value of derivatives with “Other” in the Consolidated Statements of Operation. Any fees paid to enter the swap contract at inception are recognized in earnings when received. Such fees amounted to $207 and $1,459 during the years ended December 31, 2021 and 2020, respectively.

At December 31, 2021, the Company had cash and securities at fair value pledged for collateral on its interest rate swaps with third party financial institutions of $10,780 and $509, respectively. At December 31, 2020, the Company had cash and securities at fair value pledged for collateral on its interest rate swaps with third party financial institutions of $11,300 and $11,705, respectively.

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Qualified Affordable Housing Project Investments

12 Months Ended

Dec. 31, 2021

Federal Home Loan Banks [Abstract]

Qualified Affordable Housing Project Investments

NOTE 23 – QUALIFIED AFFORDABLE HOUSING PROJECT INVESTMENTS

The Company invests in qualified affordable housing projects. At December 31, 2021 and 2020, the balance of the Company’s investments in qualified affordable housing projects was $13,093 and $11,911, respectively. These balances are reflected in the other assets line on the Consolidated Balance Sheet. The unfunded commitments related to the investments in qualified affordable housing projects totaled $5,706 and $5,944 at December 31, 2021 and 2020, respectively. These balances are reflected in the Accrued expenses and other liabilities line on the Consolidated Balance Sheet. Other assets and Accrued expenses and other liabilities were revised at December 31, 2020 to reflect the unfunded commitment of $5,944.

During the years ended December 31, 2021, 2020 and 2019, the Company recognized amortization expense with respect to its investments in qualified affordable housing projects of $818, $661 and $570, respectively, which was included within pre-tax income on the Consolidated Statements of Operations.

Additionally, during the years ended December 31, 2021, 2020 and 2019, the Company recognized tax credits and other benefits from its investments in affordable housing tax credits of $1,402, $1,186 and $995, respectively. During the years ended December 31, 2021, 2020 and 2019, the Company did not incur impairment losses related to its investment in qualified affordable housing projects.

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Revenue Recognition

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue Recognition

NOTE 24 – REVENUE RECOGNITION

The Company accounts for revenues from contracts with customers under ASC 606, Revenue from Contracts with Customers. Revenue associated with financial instruments, including revenue from loans and securities are outside the scope of the new standard and accounted for under existing GAAP. In addition, certain noninterest income streams such as fees associated with mortgage servicing rights, financial guarantees, derivatives and certain credit card fees are also not in scope of the new guidance. Noninterest revenue streams in-scope of ASC 606 are discussed below.

Service Charges

Service charges consist of account analysis fees (i.e., net fees earned on analyzed business and public checking accounts), monthly service fees, and other deposit account related fees. The Company’s performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Other deposit account related fees are largely transactional based, and therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts.

ATM/Interchange Fees

Fees, exchange, and other service charges are primarily comprised of debit and credit card income, ATM fees and other service charges. Debit and credit card income is primarily comprised of interchange fees earned whenever the Company’s debit and credit cards are processed through card payment networks such as Mastercard. ATM fees are primarily generated when a Company cardholder uses a non-Company ATM or a non-Company cardholder uses a Company ATM. The Company’s performance obligation for fees, exchange, and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month.

Wealth Management Fees

Wealth management fees are primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Company’s performance obligation is generally satisfied over time and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and the applicable fee rate. Payment is generally received in the following month through a direct charge to customers’ accounts. The Company does not earn performance-based incentives. The Company’s performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, at a point in time (i.e., as incurred). Payment is received shortly after services are rendered.

Tax Refund Processing Fees

The Company facilitates the payment of federal and state income tax refunds in partnership with a third-party vendor. Refund Transfers (“RTs”) are fee-based products whereby a tax refund is issued to the taxpayer after the Company has received the refund from the federal or state government. As part of this agreement the Company earns fee income, the majority of which is received in the first quarter of the year. The Company’s fee income revenue is recognized based on the estimated percent of business completed by each date.

Other

Other noninterest income consists of other recurring revenue streams such as check order fees, wire transfer fees, safety deposit box rental fees, item processing fees and other miscellaneous revenue streams. Check order income mainly represents fees charged to customers for checks. Wire transfer fees represent revenue from processing wire transfers. Safe deposit box rental fees are charged to the customer on an annual basis and recognized upon receipt of payment. The Company determined that since rentals and renewals occur fairly consistently over time, revenue is recognized on a basis consistent with the duration of the performance obligation. Item processing fee income represents fees charged to other financial institutions for processing their transactions. Payment is typically received in the following month.

The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the years ended December 31, 2021, 2020 and 2019.

		For the years ended December 31,
		2021		2020		2019
Noninterest Income
In-scope of Topic 606:
Service charges	$	5,905	$	5,288	$	6,395
ATM/Interchange fees		5,443		4,472		4,056
Wealth management fees		4,857		3,981		3,670
Tax refund processing fees		2,375		2,375		2,750
Other		1,055		831		911
Noninterest Income (in-scope of Topic 606)		19,635		16,947		17,782
Noninterest Income (out-of-scope of Topic 606)		11,817		11,235		4,661
Total Noninterest Income	$	31,452	$	28,182	$	22,443

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Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Leases

NOTE 25 - LEASES

We have operating leases for several branch locations and office space. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. We also lease certain office equipment under operating leases. Many of our leases include both lease (e.g., minimum rent payments) and non-lease (e.g., common-area or other maintenance costs) components. The Company accounts for each component separately based on the standalone price of each component. In addition, we have several operating leases with lease terms of less than one year and therefore, we have elected the practical expedient to exclude these short-term leases from our right-of-use (ROU) assets and lease liabilities.

Most leases include one or more options to renew. The exercise of lease renewal options is typically at our sole discretion. The majority of renewals to extend the lease terms are included in our ROU assets and lease liabilities as they are reasonably certain of exercise.

As most of our leases do not provide an implicit rate, we use the fully collateralized FHLB borrowing rate, commensurate with the lease terms based on the information available at the lease commencement date in determining the present value of the lease payments.

The balance sheet information related to our operating leases were as follows as of December 31, 2021 and 2020:

	Classification on the Consolidated Balance Sheet	December 31, 2021		December 31, 2020
Assets:
Operating lease	Other assets	$	2,314	$	2,678
Liabilities:
Operating lease	Accrued expenses and other liabilities	$	2,314	$	2,678

The cost components of our operating leases were as follows for the periods ended December 31, 2021 and 2020:

	December 31, 2021			December 31, 2020
Lease cost
Operating lease cost	$	427		$	499
Short-term lease cost		161			304
Sublease income		(29	)		(26	)
Total lease cost	$	559		$	777

Maturities of our lease liabilities for all operating leases for each of the next five years and thereafter is as follows:

2022	$	420
2023		414
2024		406
2025		308
2026		258
Thereafter		728
Total lease payments	$	2,534
Less: Imputed Interest		220
Present value of lease liabilities	$	2,314

The weighted average remaining lease terms and discount rates for all of our operating leases were as follows as of December 31, 2021:

Weighted-average remaining lease term - operating leases (years)	5.60
Weighted-average discount rate - operating leases	2.82	%

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Subsequent Events

12 Months Ended

Dec. 31, 2021

Subsequent Events [Abstract]

Subsequent Events

NOTE 26 - SUBSEQUENT EVENTS

On January 10, 2022, CBI and Comunibanc Corp. (“Comunibanc”), the parent company of The Henry County Bank entered into an Agreement and Plan of Merger (the “Merger Agreement”), pursuant to which CBI will acquire Comunibanc and its wholly-owned subsidiary, The Henry County Bank. It is anticipated that The Henry County Bank will be merged with and into Civista, upon completion of the transaction. At that time, The Henry County Bank’s seven banking offices located in Northwestern Ohio, will become offices of Civista. As of September 30, 2021, Comunibanc and The Henry County Bank had total consolidated assets of $329 million, total loans of $165 million and total deposits of $276 million.

Under the terms of the Merger Agreement, for each share of Comunibanc common stock issued and outstanding, Comunibanc shareholders have the right to receive 1.1888 CBI common shares and $30.13 in cash. This implies a deal value of approximately $50.2 million in the aggregate or $60.59 per Comunibanc share based on the closing price of Civista’s common stock on January 7, 2022 of $25.62.

The merger is anticipated to be completed during the second quarter of 2022, and is subject to the satisfaction of the closing conditions in the Merger Agreement and the approval of the appropriate regulatory authorities and of the shareholders of Comunibanc.

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2021

Accounting Policies [Abstract]

Nature of Operations and Principles of Consolidation

Nature of Operations and Principles of Consolidation: The Consolidated Financial Statements include the accounts of Civista Bancshares, Inc. (“CBI”) and its wholly-owned direct and indirect subsidiaries: Civista Bank (“Civista”), First Citizens Insurance Agency, Inc. (“FCIA”), Water Street Properties, Inc. (“WSP”), FC Refund Solutions, Inc. (“FCRS”), CIVB Risk Management, Inc. (“CRMI”), First Citizens Capital LLC (“FCC”) and First Citizens Investments, Inc. (“FCI”). The above companies together are sometimes referred to as the “Company”. Intercompany balances and transactions are eliminated in consolidation.

Civista provides financial services through its offices in the Ohio counties of Erie, Crawford, Champaign, Cuyahoga, Franklin, Logan, Summit, Huron, Ottawa, Madison, Montgomery and Richland, in the Indiana counties of Dearborn and Ripley and in the Kentucky county of Kenton. Its primary deposit products are checking, savings, and term certificate accounts, and its primary lending products are residential mortgage, commercial, and installment loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets and commercial and residential real estate. Commercial loans are expected to be repaid from cash flow from operations of businesses. There are no significant concentrations of loans to any one industry or customer. However, our customers’ ability to repay their loans is dependent on the real estate and general economic conditions in the area. Other financial instruments that potentially represent concentrations of credit risk include deposit accounts in other financial institutions.

FCIA was formed to allow the Company to participate in commission revenue generated through its third party insurance agreement. Insurance commission revenue was less than 1.0% of total revenue for each of the years ended December 31, 2021, 2020 and 2019. WSP was formed to hold repossessed assets of CBI’s subsidiaries. WSP revenue was less than 1% of total revenue for each of the years ended December 31, 2021, 2020 and 2019. FCRS was formed in 2012 to facilitate payment of individual state and federal tax refunds. The operations of FCRS were discontinued June 30, 2019. CRMI was formed in 2017 to provide property and casualty insurance coverage to CBI and its subsidiaries for which insurance may not be currently available or economically feasible in the insurance marketplace. CRMI revenue was less than 1% of total revenue for each of the years ended December 31, 2021, 2020 and 2019. FCC was formed as a wholly-owned subsidiary of Civista in Wilmington, Delaware to hold inter-company debt. The operations of FCC were discontinued December 31, 2021. FCI is wholly-owned by Civista and holds and manages its securities portfolio. The operations of FCI are located in Wilmington, Delaware.

Use of Estimates

Use of Estimates: To prepare financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and future results could differ. The allowance for loan losses, determination of goodwill impairment, fair values of financial instruments, valuation of deferred tax assets, pension obligations and other-than-temporary-impairment of securities are considered material estimates that are particularly susceptible to significant change in the near term.

Cash Flows

Cash Flows: Cash and cash equivalents include cash on hand and demand deposits with financial institutions with original maturities of less than 90 days. Net cash flows are reported for customer loan and deposit

transactions, interest bearing deposits in other financial institutions, federal funds purchased, short-term borrowings and repurchase agreements. The Company routinely maintains balances that exceed FDIC insured limits and the risk of loss is very low with respect to such deposits.

Securities

Securities: Debt securities are classified as available for sale when they might be sold before maturity. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax.

Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage backed securities where prepayments are anticipated. Gains and losses on sales are based on the amortized cost of the security sold using the specific identification method.

Securities are evaluated on at least a quarterly basis and more frequently when economic or market conditions warrant such an evaluation to determine whether a decline in their value is other than temporary. For debt securities, management considers whether the present value of cash flows expected to be collected are less than the security’s amortized cost basis, the magnitude and duration of the decline, the reasons underlying the decline and the Company’s intent to sell the security or whether it is more likely than not that the Company would be required to sell the security before its anticipated recovery in market value, to determine whether the loss in value is other than temporary. Once a decline in value is determined to be other than temporary, if the Company does not intend to sell the security, and it is more likely than not that it will not be required to sell the security, before recovery of the security’s amortized cost basis, the charge to earnings is limited to the amount of credit loss. Any remaining difference between fair value and amortized cost is recognized in other comprehensive income, net of applicable taxes. Otherwise, the entire difference between fair value and amortized cost is charged to earnings.

Other securities which include FHLB stock, Federal Reserve Bank (“FRB”) stock, Federal Agricultural Mortgage Corporation stock, Bankers’ Bancshares Inc. (“BB”) stock, and Norwalk Community Development Corp (“NCDC”) stock are carried at cost.

Equity Securities

Equity securities: Equity securities are held at fair value. Holding gains and losses are recorded in noninterest income. Dividends are recognized as income when earned.

Loans Held for Sale

Loans Held for Sale: Mortgage loans originated and intended for sale in the secondary market and loans that management no longer intends to hold for the foreseeable future, are carried at the lower of aggregate cost or fair value, as determined by outstanding commitments from investors. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings.

Loans

Loans: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of deferred loan fees and costs, and an allowance for loan losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments.

Interest income on mortgage and commercial loans is discontinued at the time the loan is 90 days delinquent unless the credit is well-secured and in process of collection. Interest income on consumer loans is discontinued

when management determines future collection is unlikely. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful.

All interest accrued, but not received, for loans placed on nonaccrual, is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Purchased Loans

Purchased Loans: The Company purchases individual loans and groups of loans. Purchased loans that show evidence of credit deterioration since origination are recorded at the amount paid (or allocated fair value in a purchase business combination), such that there is no carryover of the seller’s allowance for loan losses. After acquisition, incurred losses are recognized by an increase in the allowance for loan losses.

Purchased loans are accounted for individually or aggregated into pools of loans based on common risk characteristics (e.g., credit score, loan type, and date of origination). The Company estimates the amount and timing of expected cash flows for each purchased loan or pool, and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loan’s, or pool’s, contractual principal and interest over expected cash flows is not recorded (nonaccretable difference).

Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded. If the present value of expected future cash flows is greater than the carrying amount, the excess is recognized as part of future interest income.

Allowance for Loan Losses

Allowance for Loan Losses: The allowance for loan losses (allowance) is calculated with the objective of maintaining a reserve sufficient to absorb inherent loan losses in the loan portfolio. Management establishes the allowance for loan losses based upon its evaluation of the pertinent factors underlying the types and quality of loans in the portfolio. In determining the allowance and the related provision for loan losses, the Company considers three principal elements: (i) specific impairment reserve allocations (valuation allowances) based upon probable losses identified during the review of impaired loans in the Commercial loan portfolio, (ii) allocations established for adversely-rated loans in the Commercial loan portfolio and nonaccrual Real Estate Residential, Consumer installment and Home Equity loans, and (iii) allocations on all other loans based principally on the use of a three-year period for loss migration analysis. These allocations are adjusted for consideration of general economic and business conditions, credit quality and delinquency trends, collateral values, and recent loss experience for these similar pools of loans. The Company analyzes its loan portfolio each quarter to determine the appropriateness of its allowance for loan losses.

All Commercial, Commercial Real Estate and Farm Real Estate loans are monitored on a regular basis with a detailed loan review completed for all loan relationships greater than $1,500. All Commercial, Commercial Real Estate and Farm Real Estate loans that are 90 days past due or in nonaccrual status, are analyzed to determine if they are “impaired”, which means that it is probable that all amounts will not be collected according to the contractual terms of the loan agreement. All loans that are delinquent 90 days are classified as substandard and placed on nonaccrual status unless they are well-secured and in the process of collection. The remaining loans are

evaluated and segmented with loans with similar risk characteristics. The Company allocates reserves based on risk categories and portfolio segments described below, which conform to the Company’s asset classification policy. In reviewing risk within Civista’s loan portfolio, management has identified specific segments to categorize loan portfolio risk: (i) Commercial & Agriculture loans; (ii) Commercial Real Estate – Owner Occupied loans; (iii) Commercial Real Estate – Non-Owner Occupied loans; (iv) Residential Real Estate loans; (v) Real Estate Construction loans; (vi) Farm Real Estate loans; and (vii) Consumer and Other loans. Additional information related to economic factors can be found in Note 4.

Loan Charge-off Policies

Loan Charge-off Policies: All unsecured open- and closed-ended retail loans that become past due 90 days from the contractual due date are charged off in full. In lieu of charging off the entire loan balance, loans with non-real estate collateral may be written down to the net realizable value of the collateral, if repossession of collateral is assured and in process. For open- and closed-ended loans secured by residential real estate, a current assessment of fair value is made no later than 180 days past due. Any outstanding loan balance in excess of the net realizable value of the property is charged off. All other loans are generally charged down to the net realizable value when Civista recognizes the loan is permanently impaired, which is generally after the loan is 90 days past due.

Troubled Debt Restructurings

Troubled Debt Restructurings: In certain situations based on economic or legal reasons related to a borrower’s financial difficulties, management may grant a concession for other than an insignificant period of time to the borrower that would not otherwise be considered. The related loan is classified as a troubled debt restructuring (TDR). Management strives to identify borrowers in financial difficulty early and work with them to modify to more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal, management measures any impairment on the restructuring as noted above for impaired loans. In addition to the allowance for the pooled portfolios, management has developed a separate reserve for loans that are identified as impaired through a TDR. These loans are excluded from pooled loss forecasts and a separate reserve is provided under the accounting guidance for loan impairment. Consumer loans whose terms have been modified in a TDR are also individually analyzed for estimated impairment.

Other Real Estate

Other Real Estate: Other real estate acquired through or instead of loan foreclosure is initially recorded at fair value less costs to sell when acquired, establishing a new cost basis and any deficiency in the value is charged off through the allowance. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Operating costs after acquisition are expensed.

Premises and Equipment

Premises and Equipment: Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed using both accelerated and straight-line methods over the estimated useful life of the asset, ranging from three to seven years for furniture and equipment and seven to fifty years for buildings and improvements.

Federal Home Loan Bank (FHLB) Stock

Federal Home Loan Bank (FHLB) Stock: Civista is a member of the FHLB of Cincinnati and as such, is required to maintain a minimum investment in stock of the FHLB that varies with the level of advances outstanding with the FHLB. The stock is bought from and sold to the FHLB based upon its $100 par value. The stock does not have a readily determinable fair value and as such is classified as restricted stock, carried at cost and evaluated for impairment by management. The stock’s value is determined by the ultimate recoverability of the par value

rather than by recognizing temporary declines. The determination of whether the par value will ultimately be recovered is influenced by criteria such as the following: (a) the significance of the decline in net assets of the FHLB as compared to the capital stock amount and the length of time this situation has persisted, (b) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance, (c) the impact of legislative and regulatory changes on the customer base of the FHLB, and (d) the liquidity position of the FHLB. With consideration given to these factors, management concluded that the FHLB stock was not impaired at December 31, 2021 or 2020. FHLB Stock is included in Other Securities on the Consolidated Balance Sheet.

Federal Reserve Bank (FRB) Stock

Federal Reserve Bank (FRB) Stock: Civista is a member of the Federal Reserve System. FRB stock is carried at cost, classified as a restricted security, and periodically evaluated for impairment based on ultimate recovery of par value. FRB Stock is included in Other Securities on the Consolidated Balance Sheet.

Bank Owned Life Insurance (BOLI)

Bank Owned Life Insurance (BOLI): Civista has purchased BOLI policies on certain key executives. BOLI is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Changes in the cash surrender value are recorded as income in the period that the change occurs.

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets: Goodwill results from business acquisitions and represents the excess of the purchase price over the fair value of acquired tangible assets and liabilities and identifiable intangible assets. Goodwill is assessed at least annually for impairment and any such impairment will be recognized in the period identified.

Other intangible assets consist of core deposit intangibles arising from whole bank and branch acquisitions. These intangible assets are measured at fair value and then amortized on an accelerated method over their estimated useful lives, which range from five to twelve years.

Mortgage Servicing Rights

Mortgage Servicing Rights: Mortgage servicing rights are recognized as assets for the allocated value of retained mortgage servicing rights on loans sold. Mortgage servicing rights are initially recorded at fair value at the date of transfer. The valuation technique uses the present value of estimated future cash flows using current market discount rates. Mortgage servicing rights are amortized in proportion to, and over the period of, estimated net servicing revenues. Impairment is evaluated based on the fair value of the rights, using groupings of the underlying loans as to interest rates and then, secondarily, prepayment characteristics. Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Any impairment of a grouping is reported as a valuation allowance to the extent that fair value is less than the capitalized asset for the grouping.

Long-lived Assets

Long-lived Assets: Premises and equipment and other intangible assets, and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value.

Repurchase Agreements

Repurchase Agreements: Substantially all repurchase agreement liabilities represent amounts advanced by various customers. Securities are pledged to cover these liabilities, which are not covered by federal deposit insurance.

Loan Commitments and Related Financial Instruments

Loan Commitments and Related Financial Instruments: Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay.

Income Taxes

Income Taxes: Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax basis of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized.

The Company prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Benefits from tax positions should be recognized in the financial statements only when it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information.

A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The Company recognizes interest and/or penalties related to income tax matters in income tax expense.

Stock-Based Compensation

Stock-Based Compensation: Compensation cost is recognized for stock options and restricted stock awards issued to employees and directors, based on the fair value of these awards at the grant date. The market price of the Company’s common shares at the date of the grant is used for restricted shares.

Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award.

Retirement Plans

Retirement Plans: Pension expense is the net of service and interest cost, expected return on plan assets and amortization of gains and losses not immediately recognized. Employee 401(k) and profit sharing plan expense consist of the amount of matching contributions. Deferred compensation allocates the benefits over the years of service.

Earnings per Common Share

Earnings per Common Share: Earnings per share is computed using the two-class method. Basic earnings per share are net income available to common shareholders divided by the weighted average number of common shares outstanding during the period, which excludes participating securities. Diluted earnings per common share include the dilutive effect of additional potential common shares issuable related to convertible preferred shares. Treasury shares are not deemed outstanding for earnings per share calculations.

Comprehensive Income

Comprehensive Income: Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available for sale and changes in the funded status of the pension plan.

Loss Contingencies

Loss Contingencies: Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe that any such loss contingencies currently exist that will have a material effect on the financial statements.

Restrictions on Cash

Restrictions on Cash: Cash on hand or on deposit with the Federal Reserve Bank is required to meet regulatory reserve and clearing requirements. These balances do not earn interest. The required reserve amount at December 31, 2021 was $0. The Company had cash pledged as collateral on its interest rate swaps with third party financial institutions of $10,780 at December 31, 2021.

Dividend Restriction

Dividend Restriction: Banking regulations require maintaining certain capital levels and may limit the dividends paid by Civista to CBI or by CBI to shareholders. Additional information related to dividend restrictions can be found in Note 18.

Fair Value of Financial Instruments

Fair Value of Financial Instruments: Fair values of financial instruments are estimated using relevant market information and other assumptions that reflect exit price value, as more fully disclosed in Note 16. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect these estimates.

Operating Segments

Operating Segments: While the Company’s chief decision makers monitor the revenue streams of the Company’s various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Operating segments are aggregated into one as operating results for all segments are similar. Accordingly, all of the Company’s financial service operations are considered by management to be aggregated in one reportable operating segment.

Treasury Stock

Treasury Stock: Shares of CBI common stock that are repurchased are recorded in treasury stock at cost.

Business Combinations

Business Combinations: At the date of acquisition the Company records the assets and liabilities of acquired companies on the Consolidated Balance Sheets at their fair value. The results of operations for acquired companies are included in the Company’s Consolidated Statements of Operations beginning at the acquisition date. Expenses arising from acquisition activities are recorded in the Consolidated Statements of Operations during the period incurred.

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities: The Company enters into interest rate swap agreements to facilitate the risk management strategies of a small number of commercial banking customers. All derivatives are accounted for in accordance with ASC-815, Derivatives and Hedging. The Company mitigates the risk of entering into these agreements by entering into equal and offsetting swap agreements with highly rated third party financial institutions. The swap agreements are free-standing derivatives and are recorded at fair value in the Company’s Consolidated Balance Sheets. Changes in fair value are recorded as income or expense in the period that they occur. The Company is party to master netting arrangements with its financial institution counterparties. The master netting arrangements provide for a single net settlement of all swap agreements, as well as collateral, in the event of default on, or termination of, any one contract. Collateral, in the form of cash and marketable securities, is posted by the counterparty with net liability positions in accordance with contract thresholds.

Reclassifications

Reclassifications: Some items in the prior year financial statements were reclassified to conform to the current presentation. Such reclassifications had no effect on net income or shareholders’ equity.

Adoption of New Accounting Standards

Adoption of New Accounting Standards:

In October 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-08, Codification Improvements to Subtopic 310-20, Receivables – Nonrefundable Fees and Other Costs, which clarifies that, for each reporting period, an entity should reevaluate whether a callable debt security is within the scope of ASC 310-20-35-33. We adopted ASU 2020-08 effective January 1, 2021, which did not have a material impact on the Company’s Consolidated Financial Statements.

Effect of Newly Issued but Not Yet Effective Accounting Standards

Effect of Newly Issued but Not Yet Effective Accounting Standards:

In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses: Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which changes the impairment model for most financial assets. This ASU is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The underlying premise of ASU 2016-13 is that financial assets measured at amortized cost should be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The allowance for credit losses should reflect management’s current estimate of credit losses that are expected to occur over the remaining life of a financial asset. The income statement will be effected for the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted for annual and interim periods beginning after December 15, 2018. On October 16, 2019, the FASB voted to defer the effective date for ASC 326, Financial Instruments – Credit Losses, for smaller reporting companies to fiscal years beginning after December 15, 2022, and interim periods within those fiscal years, which was codified in the final ASU issued by the FASB on November 15, 2019. As a result, because the Company qualified as a smaller reporting company, based on its most recent determination under applicable rules of the Securities and Exchange Commission (“SEC”), as of November 15, 2019, the Company will not be subject to ASU 2016-13 until its annual and interim periods beginning after December 15, 2022. Management is in the process of evaluating the impact adoption of ASU 2016-13 will have on the Company’s Consolidated Financial Statements. This process has engaged multiple areas of the Company in evaluating loss estimation methods and application of these methods to specific segments of the loan portfolio. Management has been actively monitoring FASB developments and evaluating the use of different methods allowed. Due to continuing development of our methodology, additional time is required to quantify the affect this ASU will have on the Company’s Consolidated Financial Statements. Management continues to refine its modeling and is running parallel calculations and will finalize a method or methods of adoption in time for the effective date.

In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment. To simplify the subsequent measurement of goodwill, the FASB eliminated Step 2 from the goodwill impairment test. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities)

following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this Update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. A public business entity that is an SEC filer, such as the Company, should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. On October 16, 2019, the FASB voted to defer the effective date for ASC 350, Intangibles – Goodwill and Other, for smaller reporting companies, such as the Company, to fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The final ASU was issued by the FASB on November 15, 2019. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations.

In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, and Topic 825, Financial Instruments, which affects a variety of topics in the Codification and applies to all reporting entities within the scope of the affected accounting guidance. Topic 326, Financial Instruments – Credit Losses amendments are effective for SEC registrants for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The amendments to Topic 825 are effective for interim and annual reporting periods beginning after December 15, 2019. On October 16, 2019, the FASB voted to defer the effective date for ASC 326, Financial Instruments – Credit Losses, for smaller reporting companies, such as the Company, to fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The final ASU was issued by the FASB on November 15, 2019. The Company is currently evaluating the potential impact of the Topic 326 amendments on the Company’s Consolidated Financial Statements.

In May 2019, the FASB issued ASU 2019-05, Financial Instruments – Credit Losses, Topic 326, which allows entities to irrevocably elect the fair value option for certain financial assets previously measured at amortized cost upon adoption of the new credit losses standard. To be eligible for the transition election, the existing financial asset must otherwise be both within the scope of the new credit losses standard and eligible for the applying the fair value option in ASC 825-10.3. The election must be applied on an instrument-by-instrument basis and is not available for either available for sale or held-to-maturity debt securities. For entities that elect the fair value option, the difference between the carrying amount and the fair value of the financial asset would be recognized through a cumulative-effect adjustment to opening retained earnings as of the date an entity adopted ASU 2016-13. Changes in fair value of that financial asset would subsequently be reported in current earnings. For entities that have not yet adopted ASU 2016-13, the effective dates and transition requirements are the same as those in ASU 2016-13. For entities that have adopted ASU 2016-13, ASU 2019-05 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted once ASU 2016-13 has been adopted. On October 16, 2019, the FASB voted to defer the effective date for ASC 326, Financial Instruments – Credit Losses, for smaller reporting companies, such as the Company, to fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The final ASU was issued by the FASB on November 15, 2019. The Company is currently building its model, documenting model assumptions, preparing to run the current state and future state models parallel and evaluating the impact the adoption of the standard will have on the Company’s financial statements.

In November 2019, the FASB issued ASU 2019-10, Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842). The Update defers the effective dates of ASU 2016-13 for SEC filers that are eligible to be smaller reporting companies, such as the Company, to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. This Update also amends the mandatory effective date for the elimination of Step 2 from the goodwill impairment test under ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (Goodwill), to align with those used for credit losses. Furthermore, the ASU provides a one-year deferral of the effective dates of the ASUs on derivatives and hedging and leases for companies that are not public business entities. The Company qualified as a smaller reporting company and does not expect to early adopt these ASUs.

In November 2019, the FASB issued ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, to clarify its new credit impairment guidance in ASC 326, based on implementation issues raised by stakeholders. This Update clarified, among other things, that expected recoveries are to be included in the allowance for credit losses for these financial assets; an accounting policy election can be made to adjust the effective interest rate for existing troubled debt restructurings based on the prepayment assumptions instead of the prepayment assumptions applicable immediately prior to the restructuring event; and extends the practical expedient to exclude accrued interest receivable from all additional relevant disclosures involving amortized cost basis. The effective dates in this Update are the same as those applicable for ASU 2019-10. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations.

In March 2020, the FASB issued ASU 2020-03, Codification Improvements to Financial Instruments. This ASU was issued to improve and clarify various financial instruments topics, including the current expected credit losses (CECL) standard issued in 2016. The ASU includes seven issues that describe the areas of improvement and the related amendments to GAAP; they are intended to make the standards easier to understand and apply and to eliminate inconsistencies, and they are narrow in scope and are not expected to significantly change practice for most entities. Among its provisions, the ASU clarifies that all entities, other than public business entities that elected the fair value option, are required to provide certain fair value disclosures under ASC 825, Financial Instruments, in both interim and annual financial statements. It also clarifies that the contractual term of a net investment in a lease under Topic 842 should be the contractual term used to measure expected credit losses under Topic 326. Amendments related to ASU 2019-04 are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is not permitted before an entity’s adoption of ASU 2016-01. Amendments related to ASU 2016-13 for entities that have not yet adopted that guidance are effective upon adoption of the amendments in ASU 2016-13. Early adoption is not permitted before an entity’s adoption of ASU 2016-13. Amendments related to ASU 2016-13 for entities that have adopted that guidance are effective for fiscal years beginning after December 15, 2019, including interim periods within those years. Other amendments are effective upon issuance of this ASU. This Update is not expected to have a significant impact on the Company’s financial statements.

In January 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, March 2020, to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative

reference rates, such as the Secured Overnight Financing Rate (SOFR). Entities can elect not to apply certain modification accounting requirements to contracts affected by what the guidance calls “reference rate reform” if certain criteria are met. An entity that makes this election would not have to remeasure the contracts at the modification date or reassess a previous accounting determination. Also, entities can elect various optional expedients that would allow them to continue applying hedge accounting for hedging relationships affected by reference rate reform if certain criteria are met, and can make a one-time election to sell and/or reclassify held-to-maturity debt securities that reference an interest rate affected by reference rate reform. The amendments in this ASU are effective for all entities upon issuance through December 31, 2022. The Company is working through this transition via a multi-disciplinary project team. We are still evaluating the impact the change to a benchmark like SOFR or Prime Rate will have on our financial condition, results of operations or cash flows.

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Securities (Tables)

12 Months Ended

Dec. 31, 2021

Investments Debt And Equity Securities [Abstract]

Available for Sale Securities

The amortized cost and fair value of available for sale securities and the related gross unrealized gains and losses recognized were as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
2021
U.S. Treasury securities and obligations of U.S. government agencies	$	48,390	$	30	$	(530	)	$	47,890
Obligations of states and political subdivisions		281,247		17,696		(107	)		298,836
Mortgage-back securities in government sponsored entities		211,660		2,938		(1,450	)		213,148
Total debt securities	$	541,297	$	20,664	$	(2,087	)	$	559,874
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
2020
U.S. Treasury securities and obligations of U.S. government agencies	$	21,479	$	220	$	(6	)	$	21,693
Obligations of states and political subdivisions		208,013		21,000		(1	)		229,012
Mortgage-back securities in government sponsored entities		106,824		5,963		(28	)		112,759
Total debt securities	$	336,316	$	27,183	$	(35	)	$	363,464

Fair Value of Securities by Contractual Maturity

The amortized cost and fair value of securities at year end 2021 by contractual maturity were as follows. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately.

	Available for sale
	Amortized Cost		Fair Value
Due in one year or less	$	3,786	$	3,789
Due from one to five years		32,034		32,121
Due from five to ten years		61,675		63,083
Due after ten years		232,142		247,733
Mortgage-backed securities in government sponsored entities		211,660		213,148
Total securities available for sale	$	541,297	$	559,874

Proceeds from Sales of Securities, Gross Realized Gains and Losses

Proceeds from sales of securities, gross realized gains and gross realized losses were as follows:

	2021		2020		2019
Sale proceeds	$	1,810	$	1,455	$	17,570
Gross realized gains		1,785		94		47
Gross realized losses		—		—		43
Gains from securities called or settled by the issuer		1		—		28

Securities with Unrealized Losses Not Recognized in Income

Debt securities with unrealized losses at year end 2021 and 2020 not recognized in income were as follows:

2021	12 Months or less					More than 12 months					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Treasury securities and obligations of U.S. government agencies	$	41,432	$	(473	)	$	2,014	$	(57	)	$	43,446	$	(530	)
Obligations of states and political subdivisions		25,797		(107	)		—		—			25,797		(107	)
Mortgage-backed securities in gov’t sponsored entities		141,327		(1,343	)		3,123		(107	)		144,450		(1,450	)
Total temporarily impaired	$	208,556	$	(1,923	)	$	5,137	$	(164	)	$	213,693	$	(2,087	)

2020	12 Months or less					More than 12 months					Total
Description of Securities	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
U.S. Treasury securities and obligations of U.S. government agencies	$	6,501	$	(5	)	$	126	$	(1	)	$	6,627	$	(6	)
Obligations of states and political subdivisions		1,874		(1	)		—		—			1,874		(1	)
Mortgage-backed securities in gov’t sponsored entities		5,755		(28	)		—		—			5,755		(28	)
Total temporarily impaired	$	14,130	$	(34	)	$	126	$	(1	)	$	14,256	$	(35	)

Schedule of Net Gains and Losses on Equity Investments Recognized in Earnings and Portion of Unrealized Gains and Losses for Period that Relates to Equity Investments

The following table presents the net gains and losses on equity investments recognized in earnings at year-end 2021 and 2020, and the portion of unrealized gains and losses for the period that relates to equity investments held at year-end 2021 and 2020:

	2021		2020
Net gains (losses) recognized on equity securities during the year	$	186	$	(57	)
Less: Net gains realized on the sale of equity securities during the period		—		6
Unrealized gains (losses) recognized in equity securities held at December 31	$	186	$	(51	)

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Loans (Tables)

12 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Loan Balances

Loans at year-end were as follows:

	2021			2020
Commercial & Agriculture	$	246,502		$	409,876
Commercial Real Estate - owner occupied		295,452			278,413
Commercial Real Estate - non-owner occupied		829,310			705,072
Residential Real Estate		430,060			442,588
Real Estate Construction		157,127			175,609
Farm Real Estate		28,419			33,102
Consumer and Other		11,009			12,842
Total Loans		1,997,879			2,057,502
Allowance for loan losses		(26,641	)		(25,028	)
Net loans	$	1,971,238		$	2,032,474

Loans to Directors and Executive Officers Including Immediate Families

Loans to principal officers, directors, and their affiliates at year-end 2021 and 2020 were as follows:

	2021			2020
Balance - Beginning of year	$	8,475		$	9,909
New loans and advances		15,522			1,153
Repayments		(6,693	)		(3,004	)
Effect of changes to related parties		143			417
Balance - End of year	$	17,447		$	8,475

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Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2021

Changes in the Allowance for Loan Losses and Loan Balances Outstanding

The following tables present, by portfolio segment, the changes in the allowance for loan losses, the ending allocation of the allowance for loan losses and the loan balances outstanding for the years ended December 31, 2021, 2020 and 2019. The changes can be impacted by overall loan volume, adversely graded loans, historical charge-offs and economic factors.

Allowance for loan losses:

December 31, 2021	Beginning balance		Charge-offs			Recoveries		Provision (Credit)			Ending Balance
Commercial & Agriculture	$	2,810	$	(15	)	$	165	$	(360	)	$	2,600
Commercial Real Estate:
Owner Occupied		4,057		—			7		400			4,464
Non-Owner Occupied		12,451		—			395		1,014			13,860
Residential Real Estate		2,484		(120	)		302		(69	)		2,597
Real Estate Construction		2,439		—			1		(630	)		1,810
Farm Real Estate		338		—			12		(63	)		287
Consumer and Other		209		(24	)		60		(69	)		176
Unallocated		240		—			—		607			847
Total	$	25,028	$	(159	)	$	942	$	830		$	26,641

Allowance for loan losses:

December 31, 2020	Beginning balance		Charge-offs			Recoveries		Provision (Credit)		Ending Balance
Commercial & Agriculture	$	2,219	$	(20	)	$	7	$	604	$	2,810
Commercial Real Estate:
Owner Occupied		2,541		(148	)		259		1,405		4,057
Non-Owner Occupied		6,584		—			48		5,819		12,451
Residential Real Estate		1,582		(236	)		218		920		2,484
Real Estate Construction		1,250		—			4		1,185		2,439
Farm Real Estate		344		—			13		(19)		338
Consumer and Other		247		(61	)		65		(42)		209
Unallocated		—		—			—		240		240
Total	$	14,767	$	(465	)	$	614	$	10,112	$	25,028

Allowance for loan losses:

December 31, 2019	Beginning balance		Charge-offs			Recoveries		Provision (Credit)			Ending Balance
Commercial & Agriculture	$	1,747	$	(114	)	$	86	$	500		$	2,219
Commercial Real Estate:
Owner Occupied		1,962		(161	)		289		451			2,541
Non-Owner Occupied		5,803		—			102		679			6,584
Residential Real Estate		1,531		(294	)		259		86			1,582
Real Estate Construction		1,046		(24	)		3		225			1,250
Farm Real Estate		397		—			5		(58	)		344
Consumer and Other		284		(183	)		85		61			247
Unallocated		909		—			—		(909	)		—
Total	$	13,679	$	(776	)	$	829	$	1,035		$	14,767

The following tables present, by portfolio segment, the allocation of the allowance for loan losses and related loan balances as of December 31, 2021 and December 31, 2020.

December 31, 2021	Loans acquired with credit deterioration		Loans individually evaluated for impairment		Loans collectively evaluated for impairment		Total
Allowance for loan losses:
Commercial & Agriculture	$	—	$	—	$	2,600	$	2,600
Commercial Real Estate:
Owner Occupied		—		7		4,457		4,464
Non-Owner Occupied		—		—		13,860		13,860
Residential Real Estate		—		11		2,586		2,597
Real Estate Construction		—		—		1,810		1,810
Farm Real Estate		—		—		287		287
Consumer and Other		—		—		176		176
Unallocated		—		—		847		847
Total	$	—	$	18	$	26,623	$	26,641
Outstanding loan balances:
Commercial & Agriculture	$	—	$	—	$	246,502	$	246,502
Commercial Real Estate:
Owner Occupied		—		187		295,265		295,452
Non-Owner Occupied		—		—		829,310		829,310
Residential Real Estate		290		526		429,244		430,060
Real Estate Construction		—		—		157,127		157,127
Farm Real Estate		—		509		27,910		28,419
Consumer and Other		—		—		11,009		11,009
Total	$	290	$	1,222	$	1,996,367	$	1,997,879

December 31, 2020	Loans acquired with credit deterioration		Loans individually evaluated for impairment		Loans collectively evaluated for impairment		Total
Allowance for loan losses:
Commercial & Agriculture	$	—	$	73	$	2,737	$	2,810
Commercial Real Estate:
Owner Occupied		—		5		4,052		4,057
Non-Owner Occupied		—		—		12,451		12,451
Residential Real Estate		—		29		2,455		2,484
Real Estate Construction		—		—		2,439		2,439
Farm Real Estate		—		—		338		338
Consumer and Other		—		—		209		209
Unallocated		—		—		240		240
Total	$	—	$	107	$	24,921	$	25,028
Outstanding loan balances:
Commercial & Agriculture	$	—	$	74	$	409,802	$	409,876
Commercial Real Estate:
Owner Occupied		—		980		277,433		278,413
Non-Owner Occupied		—		48		705,024		705,072
Residential Real Estate		388		946		441,254		442,588
Real Estate Construction		—		—		175,609		175,609
Farm Real Estate		—		618		32,484		33,102
Consumer and Other		—		—		12,842		12,842
Total	$	388	$	2,666	$	2,054,448	$	2,057,502

Credit Exposures by Internally Assigned Grades

December 31, 2021	Pass		Special Mention		Substandard		Doubtful		Ending Balance
Commercial & Agriculture	$	244,787	$	526	$	1,189	$	—	$	246,502
Commercial Real Estate:
Owner Occupied		290,617		3,119		1,716		—		295,452
Non-Owner Occupied		764,181		28,042		37,087		—		829,310
Residential Real Estate		77,594		164		4,455		—		82,213
Real Estate Construction		136,149		260		5		—		136,414
Farm Real Estate		27,023		205		1,191		—		28,419
Consumer and Other		764		—		20		—		784
Total	$	1,541,115	$	32,316	$	45,663	$	—	$	1,619,094
December 31, 2020	Pass		Special Mention		Substandard		Doubtful		Ending Balance
Commercial & Agriculture	$	401,636	$	4,472	$	3,768	$	—	$	409,876
Commercial Real Estate:
Owner Occupied		248,316		19,429		10,668		—		278,413
Non-Owner Occupied		604,909		58,270		41,893		—		705,072
Residential Real Estate		81,409		668		5,524		—		87,601
Real Estate Construction		158,207		962		492		—		159,661
Farm Real Estate		30,486		216		2,400		—		33,102
Consumer and Other		833		—		33		—		866
Total	$	1,525,796	$	84,017	$	64,778	$	—	$	1,674,591

Performing and Nonperforming Loans

December 31, 2021	Residential Real Estate		Real Estate Construction		Consumer and Other		Total
Performing	$	347,847	$	20,713	$	10,225	$	378,785
Nonperforming		—		—		—		—
Total	$	347,847	$	20,713	$	10,225	$	378,785

December 31, 2020	Residential Real Estate		Real Estate Construction		Consumer and Other		Total
Performing	$	354,987	$	15,948	$	11,976	$	382,911
Nonperforming		—		—		—		—
Total	$	354,987	$	15,948	$	11,976	$	382,911

Aging Analysis of Past Due Loans

December 31, 2021	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater		Total Past Due		Current		Purchased Credit- Impaired Loans		Total Loans		Past Due 90 Days and Accruing
Commercial & Agriculture	$	249	$	13	$	78	$	340	$	246,162	$	—	$	246,502	$	—
Commercial Real Estate:
Owner Occupied		—		—		106		106		295,346		—		295,452		—
Non-Owner Occupied		—		—		4		4		829,306		—		829,310		—
Residential Real Estate		1,848		879		842		3,569		426,201		290		430,060		—
Real Estate Construction		—		—		—		—		157,127		—		157,127		—
Farm Real Estate		—		—		—		—		28,419		—		28,419		—
Consumer and Other		42		—		9		51		10,958		—		11,009		—
Total	$	2,139	$	892	$	1,039	$	4,070	$	1,993,519	$	290	$	1,997,879	$	—

December 31, 2020	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater		Total Past Due		Current		Purchased Credit- Impaired Loans		Total Loans		Past Due 90 Days and Accruing
Commercial & Agriculture	$	117	$	25	$	50	$	192	$	409,684	$	—	$	409,876	$	—
Commercial Real Estate:
Owner Occupied		—		4		102		106		278,307		—		278,413		—
Non-Owner Occupied		—		—		6		6		705,066		—		705,072		—
Residential Real Estate		1,059		867		1,314		3,240		438,960		388		442,588		—
Real Estate Construction		—		—		—		—		175,609		—		175,609		—
Farm Real Estate		—		—		4		4		33,098		—		33,102		—
Consumer and Other		59		1		16		76		12,766		—		12,842		—
Total	$	1,235	$	897	$	1,492	$	3,624	$	2,053,490	$	388	$	2,057,502	$	—

Summary of Nonaccrual Loans Excluding Purchased Credit-Impaired (PCI) Loans

The following table presents loans on nonaccrual status, excluding purchased credit-impaired (PCI) loans, as of December 31, 2021 and 2020.

	2021		2020
Commercial & Agriculture	$	78	$	139
Commercial Real Estate:
Owner Occupied		334		964
Non-Owner Occupied		4		6
Residential Real Estate		3,232		3,893
Real Estate Construction		5		7
Farm Real Estate		—		85
Consumer and Other		20		31
Total	$	3,673	$	5,125

Schedule of Loan Modifications

There were no loans modified during the twelve month period ended December 31, 2021 and 2020. Loan modifications that are considered TDRs completed during the twelve month periods ended December 31, 2019 were as follows:

	For the Twelve Month Period Ended December 31, 2019
	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial & Agriculture		—	$	—	$	—
Commercial Real Estate:
Owner Occupied		—		—		—
Non-Owner Occupied		1		382		382
Residential Real Estate		—		—		—
Real Estate Construction		—		—		—
Farm Real Estate		—		—		—
Consumer and Other		—		—		—
Total Loan Modifications		1	$	382	$	382

Impaired Financing Receivables Excluding PCI Loans

The following table includes the recorded investment and unpaid principal balances for impaired financing receivables, excluding PCI loans, with the associated allowance amount, if applicable, as of December 31, 2021 and 2020.

	December 31, 2021						December 31, 2020
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:
Commercial Real Estate:
Owner Occupied	$	—	$	—			$	757	$	757
Non-Owner Occupied		—		—				48		48
Residential Real Estate		503		528				915		940
Farm Real Estate		509		509				618		618
Total		1,012		1,037				2,338		2,363
With an allowance recorded:
Commercial & Agriculture		—		—	$	—		74		74	$	73
Commercial Real Estate:
Owner Occupied		187		187		7		223		223		5
Residential Real Estate		23		27		11		31		35		29
Total		210		214		18		328		332		107
Total:
Commercial & Agriculture		—		—		—		74		74		73
Commercial Real Estate:
Owner Occupied		187		187		7		980		980		5
Non-Owner Occupied		—		—		—		48		48		—
Residential Real Estate		526		555		11		946		975		29
Farm Real Estate		509		509		—		618		618		—
Total	$	1,222	$	1,251	$	18	$	2,666	$	2,695	$	107

The following tables include the average recorded investment and interest income recognized for impaired financing receivables as of, and for the years ended, December 31, 2021, 2020 and 2019.

For the year ended:	December 31, 2021				December 31, 2020
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial & Agriculture	$	15	$	—	$	88	$	4
Commercial Real Estate:
Owner Occupied		396		18		520		27
Non-Owner Occupied		23		1		243		16
Residential Real Estate		629		31		1,361		43
Farm Real Estate		569		24		647		26
Total	$	1,632	$	74	$	2,859	$	116

For the year ended:	December 31, 2019
	Average Recorded Investment		Interest Income Recognized
Commercial & Agriculture	$	367	$	33
Commercial Real Estate:
Owner Occupied		456		32
Non-Owner Occupied		308		20
Residential Real Estate		1,271		58
Farm Real Estate		683		29
Total	$	3,085	$	172

Schedule of Changes in Amortized Yield for PCI Loans

Changes in the amortizable yield for PCI loans were as follows, since acquisition:

	At December 31, 2021			At December 31, 2020
	(In Thousands)			(In Thousands)
Balance at beginning of period	$	225		$	255
Acquisition of PCI loans		—			—
Accretion		(77	)		(336	)
Transfers from non-accretable to accretable		69			306
Balance at end of period	$	217		$	225

Schedule of Loans Acquired and Accounted

The following table presents additional information regarding loans acquired and accounted for in accordance with ASC 310-30:

	At December 31, 2021		At December 31, 2020
	Acquired Loans with Specific Evidence of Deterioration of Credit Quality (ASC 310-30)		Acquired Loans with Specific Evidence of Deterioration of Credit Quality (ASC 310-30)
	(In Thousands)
Outstanding balance	$	512	$	687
Carrying amount		290		388

CARES Act [Member]

Schedule of Loan Modifications

Details with respect to loan modifications that remain on deferred status are as follows:

Type of Loan	Number of Loans		Balance		Percent of Loans Outstanding1
			(In thousands)
Commercial & Agriculture		2	$	498		0.03	%
Commercial Real Estate:
Non-Owner Occupied		5		4,644		0.24	%
Total		7	$	5,142		0.26	%
1 excluding PPP loans

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Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

Components of Other Comprehensive Income (Loss)

The following table presents the components of other comprehensive income (loss), net of tax, as of December 31, 2021, 2020 and 2019:

	Before Tax			Tax Effect			Net of Tax
Year Ended December 31, 2021
Net unrealized Gains (Losses) on Investment Securities:
Other comprehensive income (loss) before reclassifications	$	(8,570	)	$	(1,799	)	$	(6,771	)
Amounts reclassified from accumulated other comprehensive income (loss)		(1	)		—			(1	)
Net Unrealized Gains (Losses) on Investment Securities		(8,571	)		(1,799	)		(6,772	)
Defined Benefit Plans:
Other comprehensive income (loss) before reclassifications		992			209			783
Amounts reclassified from accumulated other comprehensive income (loss)		240			50			190
Defined Benefit Plans, Net		1,232			259			973
Other Comprehensive Income	$	(7,339	)	$	(1,540	)	$	(5,799	)
Year Ended December 31, 2020
Net unrealized Gains (Losses) on Investment Securities:
Other comprehensive income (loss) before reclassifications	$	10,935		$	2,297		$	8,638
Amounts reclassified from accumulated other comprehensive income (loss)		(94	)		(20	)		(74	)
Net Unrealized Gains on Investment Securities		10,841			2,277			8,564
Defined Benefit Plans:
Other comprehensive income (loss) before reclassifications		(1,326	)		(279	)		(1,047	)
Amounts reclassified from accumulated other comprehensive income (loss)		289			61			228
Defined Benefit Plans, Net		(1,037	)		(218	)		(819	)
Other Comprehensive Income	$	9,804		$	2,059		$	7,745
Year Ended December 31, 2019
Net unrealized Gains (Losses) on Investment Securities:
Other comprehensive income (loss) before reclassifications	$	13,368		$	2,807		$	10,561
Amounts reclassified from accumulated other comprehensive income (loss)		(32	)		(7	)		(25	)
Net Unrealized Losses on Investment Securities		13,336			2,800			10,536
Defined Benefit Plans:
Other comprehensive income (loss) before reclassifications		(2,953	)		(620	)		(2,333	)
Amounts reclassified from accumulated other comprehensive income (loss)		156			33			123
Defined Benefit Plans, Net		(2,797	)		(587	)		(2,210	)
Other Comprehensive Loss	$	10,539		$	2,213		$	8,326

The following table presents the changes in each component of accumulated other comprehensive income (loss), net of tax, as of December 31, 2021, 2020 and 2019.

	For the Year Ended December 31, 2021									For the Year Ended December 31, 2020								For the Year Ended December 31, 2019
	Unrealized Gains and Losses on Available for Sale Securities			Defined Benefit Pension Items			Total			Unrealized Gains and Losses on Available for Sale Securities			Defined Benefit Pension Items			Total		Unrealized Gains and Losses on Available for Sale Securities			Defined Benefit Pension Items			Total
Beginning balance	$	21,447		$	(6,828	)	$	14,619		$	12,883		$	(6,009	)	$	6,874	$	2,347		$	(3,799	)	$	(1,452	)
Other comprehensive income (loss) before reclassifications		(6,771	)		783			(5,988	)		8,638			(1,047	)		7,591		10,561			(2,333	)		8,228
Amounts reclassified from accumulated other comprehensive income (loss)		(1	)		190			189			(74	)		228			154		(25	)		123			98
Net current-period other comprehensive income (loss)		(6,772	)		973			(5,799	)		8,564			(819	)		7,745		10,536			(2,210	)		8,326
Ending balance	$	14,675		$	(5,855	)	$	8,820		$	21,447		$	(6,828	)	$	14,619	$	12,883		$	(6,009	)	$	6,874

Amounts Reclassified Out of Each Component of Accumulated Other Comprehensive Loss

The following table presents the amounts reclassified out of each component of accumulated other comprehensive loss as of December 31, 2021, 2020 and 2019.

	Amount Reclassified from Accumulated Other Comprehensive Loss (a)
	For the year ended December 31,
Details about Accumulated Other Comprehensive Income (Loss) Components	2021			2020			2019			Affected Line Item in the Statement Where Net Income is Presented
Unrealized gains (losses) on available for sale securities	$	1		$	94		$	32		Net gain on sale of securities
Tax effect		—			(20	)		(7	)	Income taxes
		1			74			25
Amortization of defined benefit pension items
Actuarial losses		(240	)(b)		(289	)(b)		(156	)(b)	Other operating expenses
Tax effect		50			61			33		Income taxes
		(190	)		(228	)		(123	)
Total reclassifications for the period	$	(189	)	$	(154	)	$	(98	)

(a) Amounts in parentheses indicate expenses and other amounts indicate income.

(b) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost.

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Premises and Equipment (Tables)

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Year-End Premises and Equipment

Year-end premises and equipment were as follows:

	At December 31,
	2021			2020
Land and improvements	$	6,970		$	6,879
Buildings and improvements		29,305			28,835
Furniture and equipment		23,786			22,849
Total		60,061			58,563
Accumulated depreciation		(37,616	)		(35,983	)
Premises and equipment, net	$	22,445		$	22,580

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Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Acquired Intangible Assets

Acquired intangible assets were as follows as of year-end.

	2021						2020
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Core deposit intangible assets(1):
Core deposit intangibles		8,527		3,588		4,939		14,792		8,963		5,829
Total core deposit intangible assets	$	8,527	$	3,588	$	4,939	$	14,792	$	8,963	$	5,829

Schedule of Mortgage Servicing Rights (MSRs) and Related Valuation Allowance

Activity for mortgage servicing rights (MSRs) and the related valuation allowance follows:

	2021			2020
Mortgage Servicing Rights:
Beginning of year	$	2,246		$	1,562
Additions		764			1,310
Disposals		—			—
Amortized to expense		572			524
Other Charges		—			—
Change in valuation allowance		(204	)		102
End of year	$	2,642		$	2,246
Valuation allowance:
Beginning of year	$	204		$	102
Additions expensed		261			162
Reductions credited to operations		(465	)		(60	)
Direct write-offs		—			—
End of year	$	—		$	204

Schedule of Estimated Amortization Expense

Estimated amortization expense for each of the next five years and thereafter is as follows:

	MSRs		Core deposit intangibles		Total
2022	$	137	$	868	$	1,005
2023		137		841		978
2024		137		804		941
2025		137		708		845
2026		135		670		805
Thereafter		1,959		1,048		3,007
	$	2,642	$	4,939	$	7,581

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Interest-Bearing Deposits (Tables)

12 Months Ended

Dec. 31, 2021

Deposits [Abstract]

Summary of Interest-Bearing Deposits

Interest-bearing deposits as of December 31, 2021 and 2020 were as follows:

	2021		2020
Demand	$	537,510	$	410,139
Savings and Money markets		843,837		771,612
Certificates of Deposit:
$250 and over		55,011		70,989
Other		149,521		169,453
Individual Retirement Accounts		41,916		46,396
Total	$	1,627,795	$	1,468,589

Scheduled Maturities of Certificates of Deposit

Scheduled maturities of certificates of deposit, including IRAs at December 31, 2021 were as follows:

2022	$	173,834
2023		45,195
2024		18,810
2025		3,829
2026		3,596
Thereafter		1,184
Total	$	246,448

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Short-Term Borrowings (Tables)

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Summary of Federal Funds Purchased and Other Short-term Borrowings

Short-term borrowings, which consist of federal funds purchased and other short-term borrowings are summarized as follows:

	At December 31, 2021					At December 31, 2020
	Federal Funds Purchased			Short-term Borrowings		Federal Funds Purchased			Short-term Borrowings
Outstanding balance at year end	$	—		$	—	$	—		$	—
Maximum indebtedness during the year		50,000			—		50,000			102,700
Average balance during the year		137			—		228			8,151
Average rate paid during the year		0.73	%		—		0.35	%		1.64	%
Interest rate on year end balance		—			—		—			—

	At December 31, 2019
	Federal Funds Purchased			Short-term Borrowings
Outstanding balance at year end	$	—		$	101,500
Maximum indebtedness during the year		20,000			192,700
Average balance during the year		137			112,088
Average rate paid during the year		2.19	%		2.32	%
Interest rate on year end balance		—			1.63	%

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Federal Home Loan Bank Advances (Tables)

12 Months Ended

Dec. 31, 2021

Advances from Federal Home Loan Banks [Abstract]

Scheduled Principal Reductions of Federal Home Loan Bank Advances Outstanding

Scheduled principal reductions of FHLB advances outstanding at December 31, 2021 were as follows:

2029	$	75,000
Total	$	75,000

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Securities Sold Under Agreements to Repurchase (Tables)

12 Months Ended

Dec. 31, 2021

Brokers and Dealers [Abstract]

Summary of Securities Pledged as Collateral Under Repurchase Agreements

The following table presents detail regarding the securities pledged as collateral under repurchase agreements as of December 31, 2021 and 2020. All of the repurchase agreements are overnight agreements.

	December 31, 2021		December 31, 2020
Securities pledged for repurchase agreements:
U.S. Treasury securities	$	16,478	$	899
Obligations of U.S. government agencies		9,017		28,015
Total securities pledged	$	25,495	$	28,914
Gross amount of recognized liabilities for repurchase agreements	$	25,495	$	28,914
Amounts related to agreements not included in offsetting disclosures above	$	—	$	—

Schedule of Securities Sold Under Agreements to Repurchase

Information concerning securities sold under agreements to repurchase was as follows:

	2021			2020			2019
Outstanding balance at year end	$	25,495		$	28,914		$	18,674
Average balance during the year		24,390			24,390			18,321
Average interest rate during the year		0.09	%		0.10	%		0.10	%
Maximum month-end balance during the year	$	34,200		$	31,885		$	21,970
Weighted average interest rate at year end		0.05	%		0.10	%		0.10	%

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of Income Tax

Income taxes were as follows for the years ended December 31:

	2021		2020			2019
Current	$	5,111	$	6,947		$	4,713
State		587		270			307
Deferred		1,319		(2,277	)		663
Income taxes	$	7,017	$	4,940		$	5,683

Effective Tax Rates Differed from Statutory Federal Income Tax Rate

Effective tax rates differed from the statutory federal income tax rate of 21% in 2021, 2020 and 2019 due to the following:

	2021			2020			2019
Income taxes computed at the statutory federal tax rate	$	9,988		$	7,798		$	8,308
Add (subtract) tax effect of:
Nontaxable interest income, net of nondeductible interest expense		(1,315	)		(1,293	)		(1,194	)
Low income housing tax credit		(1,402	)		(1,186	)		(903	)
Cash surrender value of BOLI		(252	)		(205	)		(211	)
Change in tax position BOLI		—			—			(353	)
Other		(2	)		(174	)		36
Income tax expense	$	7,017		$	4,940		$	5,683

Summary of Deferred Tax Assets and Liabilities

Year-end deferred tax assets and liabilities were due to the following:

	2021			2020
Deferred tax assets
Allowance for loan losses	$	5,595		$	5,256
Deferred compensation		1,213			1,201
Pension costs		56			304
Intangible assets		231			312
Net operating loss carryforward		—			509
Deferred loan fees		614			1,260
Other		713			745
Deferred tax asset		8,422			9,587
Deferred tax liabilities
Tax depreciation in excess of book depreciation		(973	)		(851	)
Discount accretion on securities		(86	)		(10	)
FHLB stock dividends		(969	)		(969	)
Unrealized gain on securities available for sale		(3,806	)		(5,606	)
Prepaids		(276	)		(325	)
Other		(1,243	)		(979	)
Deferred tax liability		(7,353	)		(8,740	)
Net deferred tax asset	$	1,069		$	847

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Retirement Plans (Tables)

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

Information about Pension Plan

Information about the pension plan is as follows:

	2021			2020
Change in benefit obligation:
Beginning benefit obligation	$	16,656		$	15,570
Service cost		—			—
Interest cost		378			484
Curtailment gain		—			—
Settlement loss		—			—
Actuarial (gain)/loss		(921	)		1,898
Benefits paid		(711	)		(1,296	)
Settlement payments		(18	)		—
Ending benefit obligation		15,384			16,656
Change in plan assets, at fair value:
Beginning plan assets		15,257			15,183
Actual return		574			1,370
Employer contribution		—			—
Benefits paid		(711	)		(1,296	)
Settlement payments		—			—
Administrative expenses		—			—
Ending plan assets		15,120			15,257
Funded status at end of year	$	(264	)	$	(1,399	)

Components of Net Periodic Pension Expense

The components of net periodic pension expense were as follows:

	2021			2020			2019
Service cost	$	—		$	—		$	—
Interest cost		378			484			479
Expected return on plan assets		(574	)		(748	)		(811	)
Net amortization and deferral		240			289			156
Net periodic pension cost (benefit)		44			25			(176	)
Additional loss due to settlement		—			—			0
Total pension cost (benefit)	$	44		$	25		$	(176	)
Net loss (gain) recognized in other comprehensive income	$	(854	)	$	986		$	2,798
Total recognized in net periodic benefit cost and other comprehensive loss (before tax)	$	(810	)	$	1,011		$	2,622

Weighted Average Assumptions Used to Determine Benefit Obligations and Net Periodic Pension Cost

The weighted average assumptions used to determine benefit obligations at year-end were as follows:

	2021			2020			2019
Discount rate on benefit obligation		2.74	%		2.39	%		3.13	%
Long-term rate of return on plan assets		3.84	%		4.44	%		4.96	%
Rate of compensation increase		0.00	%		0.00	%		0.00	%

The weighted average assumptions used to determine net periodic pension cost were as follows:

	2021			2020			2019
Discount rate on benefit obligation		2.39	%		3.13	%		4.14	%
Long-term rate of return on plan assets		4.44	%		4.96	%		7.00	%
Rate of compensation increase		0.00	%		0.00	%		0.00	%

Schedule of Pension Plan Asset Allocation and Target Allocation by Asset Category

The Company’s pension plan asset allocation at year-end 2021 and 2020 and target allocation for 2022 by asset category are as follows:

	Target   Allocation			Percentage of Plan Assets at Year-end
Asset Category	2022			2021			2020
Equity securities		0-30	%		20.0	%		20.0	%
Debt securities		70-100			80.0			80.0
Total					100.0	%		100.0	%

Summary of Investments Measured at Fair Value Based on NAV Per Share

The following table summarizes investments measured at fair value based on NAV per share as of December 31, 2021 and 2020, respectively:

December 31, 2021	Fair Value		Unfunded   Commitments		Redemption Frequency (if currently eligible)		Redemption   Notice Period
Common/collective trust funds	$	15,120		N/A		Daily		Daily

December 31, 2020	Fair Value		Unfunded   Commitments		Redemption Frequency (if currently eligible)		Redemption   Notice Period
Common/collective trust funds	$	15,257		N/A		Daily		Daily

Summary of Expected Benefit Payments

Expected benefit payments, which reflect expected future service, are as follows:

2022	$	246
2023		288
2024		327
2025		391
2026		491
2027 through 2031		3,100
Total	$	4,843

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Equity Incentive Plan (Tables)

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Summary of Company's Restricted Stock

The following is a summary of the status of the Company’s restricted shares, and changes therein during the twelve months ended December 31, 2021:

	December 31, 2021
	Number of Restricted Shares			Weighted Average   Grant Date   Fair Value
Nonvested at beginning of period		54,274		$	20.90
Granted		39,139			19.17
Vested		(20,275	)		20.35
Forfeited		(3,298	)		19.74
Nonvested at end of period		69,840			20.14

The following is a summary of the status of the Company’s awarded restricted shares as of December 31, 2021:

At December 31, 2021
Date of Award	Shares		Remaining Expense		Remaining Vesting     Period (Years)
March 20, 2017		1,198	$	—		0.00
April 10, 2018		3,114		31		1.00
March 14, 2019		3,174		—		0.00
March 14, 2019		6,560		79		2.00
March 14, 2020		8,595		85		1.00
March 14, 2020		10,390		148		3.00
March 3, 2021		16,277		226		4.00
March 3, 2021		20,532		262		2.00
		69,840	$	831		2.30

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Fair Value Measurement (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value

Fair Value Measurements at December 31, 2021 using:

	(Level 1)		(Level 2)		(Level 3)
Assets measured at fair value on a recurring basis:
Securities available for sale
U.S. Treasury securities and obligations of U.S. Government agencies	$	—	$	47,890	$	—
Obligations of states and political subdivisions		—		298,836		—
Mortgage-backed securities in government sponsored entities		—		213,148		—
Total securities available for sale		—		559,874		—
Equity securities		—		1,072		—
Swap asset		—		11,072		—
Liabilities measured at fair value on a recurring basis:
Swap liability		—		11,072		—
Assets measured at fair value on a nonrecurring basis:
Impaired Loans	$	—	$	—	$	11
Mortgage servicing rights		—		—		2,642

Fair Value Measurements at December 31, 2020 using:

	(Level 1)		(Level 2)		(Level 3)
Assets measured at fair value on a recurring basis:
Securities available for sale
U.S. Treasury securities and obligations of U.S. Government agencies	$	—	$	21,693	$	—
Obligations of states and political subdivisions		—		229,012		—
Mortgage-backed securities in government sponsored entities		—		112,759		—
Total securities available for sale		—		363,464		—
Equity securities		—		886		—
Swap asset		—		21,700		—
Liabilities measured at fair value on a recurring basis:
Swap liability		—		21,764		—
Assets measured at fair value on a nonrecurring basis:
Impaired Loans	$	—	$	—	$	1
Mortgage servicing rights		—		—		2,246
Other Real Estate Owned		—		—		31

Quantitative Information about Level 3 Fair Value Measurements

The following tables presents quantitative information about the Level 3 significant unobservable inputs for assets and liabilities measured at fair value on a nonrecurring basis at December 31, 2021 and 2020.

	Quantitative Information about Level 3 Fair Value Measurements
December 31, 2021	Fair Value		Valuation Technique	Unobservable Input	Range	Weighted Average
Impaired loans	$	11	Appraisal of collateral	Appraisal adjustments	10%	10%
				Holding period	24 months	24 months
	Quantitative Information about Level 3 Fair Value Measurements
December 31, 2020	Fair Value		Valuation Technique	Unobservable Input	Range	Weighted Average
Impaired loans	$	1	Appraisal of collateral	Appraisal adjustments	0% - 30%	19%
				Holding period	23 months	23 months
Other real estate owned	$	31	Appraisal of collateral	Appraisal adjustments	10%	10%

Carrying Amount and Fair Value of Financial Instruments Carried at Amortized Cost

The carrying amount and fair value of financial instruments carried at amortized cost were as follows:

December 31, 2021	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from financial institutions	$	265,969	$	265,969	$	265,969		$        —	$	—
Other securities		17,011		17,011		17,011		—		—
Loans, held for sale		1,972		2,011		2,011		—		—
Loans, net of allowance for loan losses		1,971,238		1,945,638		—		—		1,945,638
Bank owned life insurance		47,176		47,176		47,176		—		—
Accrued interest receivable		7,385		7,385		7,385		—		—
Financial Liabilities:
Nonmaturing deposits		2,170,253		2,170,253		2,170,253		—		—
Time deposits		246,448		247,053		—		—		247,053
Long-term FHLB advances		75,000		75,930		—		—		75,930
Securities sold under agreement to repurchase		25,495		25,495		25,495		—		—
Subordinated debentures		102,813		111,118		—		—		111,118
Accrued interest payable		315		315		315		—		—

December 31, 2020	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from financial institutions	$	139,522	$	139,522	$	139,522	$	—	$	—
Other securities		20,537		20,537		20,537		—		—
Loans, held for sale		7,001		7,141		7,141		—		—
Loans, net of allowance for loan losses		2,032,474		2,063,249		—		—		2,063,249
Bank owned life insurance		46,976		45,976		45,976		—		—
Accrued interest receivable		9,421		9,421		9,421		—		—
Financial Liabilities:
Nonmaturing deposits		1,902,560		1,902,560		1,902,560		—		—
Time deposits		286,838		288,298		—		—		288,298
Long-term FHLB advances		125,000		130,942		—		—		130,942
Securities sold under agreement to repurchase		28,914		28,914		28,914		—		—
Subordinated debentures		29,427		31,479		—		—		31,479
Accrued interest payable		204		204		204		—		—

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Commitments, Contingencies and Off-Balance-Sheet Risk (Tables)

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Contractual Amounts of Financial Instruments with Off-Balance-Sheet Risk

The contractual amount of financial instruments with off-balance-sheet risk was as follows at year-end.

	2021				2020
	Fixed Rate		Variable Rate		Fixed Rate		Variable Rate
Commitments to extend credit:
Lines of credit and construction loans	$	33,542	$	455,777	$	38,474	$	427,864
Overdraft protection		7		54,034		6		41,707
Letters of credit		615		731		615		986
	$	34,164	$	510,542	$	39,095	$	470,557

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Capital Requirements and Restriction on Retained Earnings (Tables)

12 Months Ended

Dec. 31, 2021

Capital Requirements And Restriction On Retained Earnings [Abstract]

Actual Capital Levels and Minimum Required Capital Levels

The Company’s and Civista’s actual capital levels and minimum required capital levels at December 31, 2021 and 2020 were as follows:

	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Prompt Corrective Action Purposes
	Amount		Ratio			Amount		Ratio			Amount		Ratio
2021
Total Risk Based Capital
Consolidated	$	394,164		19.2	%	$	164,498		8.0	%		n/a		n/a
Civista		338,383		16.5			164,483		8.0		$	205,604		10.0	%
Tier I Risk Based Capital
Consolidated		295,064		14.3			123,373		6.0			n/a		n/a
Civista		312,671		15.2			123,362		6.0			164,483		8.0
CET1 Risk Based Capital
Consolidated		265,637		12.9			92,530		4.5			n/a		n/a
Civista		312,671		15.2			92,522		4.5			133,642		6.5
Leverage
Consolidated		295,064		10.2			115,543		4.0			n/a		n/a
Civista		312,671		10.8			115,408		4.0			144,260		5.0
2020
Total Risk Based Capital
Consolidated	$	307,504		16.0	%	$	153,810		8.0	%		n/a		n/a
Civista		277,429		14.4			153,765		8.0		$	192,206		10.0	%
Tier I Risk Based Capital
Consolidated		283,459		14.7			115,358		6.0			n/a		n/a
Civista		252,304		13.1			115,323		6.0			153,765		8.0
CET1 Risk Based Capital
Consolidated		254,032		13.2			86,518		4.5			n/a		n/a
Civista		241,891		12.6			86,493		4.5			124,934		6.5
Leverage
Consolidated		283,459		10.8			105,279		4.0			n/a		n/a
Civista		252,304		9.6			105,029		4.0			131,286		5.0

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Parent Company Only Condensed Financial Information (Tables)

12 Months Ended

Dec. 31, 2021

Condensed Financial Information Disclosure [Abstract]

Schedule of Condensed Balance Sheets

	December 31,
Condensed Balance Sheets	2021			2020
Assets:
Cash	$	45,800		$	19,446
Equity securities		1,072			886
Investment in bank subsidiary		408,255			344,948
Investment in nonbank subsidiaries		3,474			16,017
Other assets		2,016			1,575
Total assets	$	460,617		$	382,872
Liabilities:
Deferred income taxes and other liabilities	$	2,592		$	3,337
Subordinated debentures		102,813			29,427
Total liabilities		105,405			32,764
Shareholders’ Equity:
Common stock		277,741			277,039
Accumulated earnings		125,558			93,048
Treasury Stock		(56,907	)		(34,598	)
Accumulated other comprehensive income		8,820			14,619
Total shareholders’ equity		355,212			350,108
Total liabilities and shareholders’ equity	$	460,617		$	382,872

Schedule of Condensed Statements of Operations

	For the years ended December 31,
Condensed Statements of Operations	2021			2020			2019
Dividends from bank subsidiaries	$	19,900		$	15,300		$	13,300
Dividends from non-bank subsidiaries		1,000			440			—
Interest expense		(956	)		(945	)		(1,423	)
Pension expense		(47	)		(25	)		176
Other expense, net		(1,004	)		(1,241	)		(1,107	)
Income (loss) before equity in undistributed net earnings of subsidiaries		18,893			13,529			10,946
Income tax benefit		425			475			494
Equity in undistributed net earnings of subsidiaries		21,228			18,188			22,438
Net income	$	40,546		$	32,192		$	33,878
Comprehensive income	$	34,747		$	39,937		$	42,204

Schedule of Condensed Statements of Cash Flows

	For the years ended December 31,
Condensed Statements of Cash Flows	2021			2020			2019
Operating activities:
Net income	$	40,546		$	32,192		$	33,878
Adjustment to reconcile net income to net cash from operating activities:
Change in other assets and other liabilities		2,495			1,925			4,437
Equity in undistributed net earnings of subsidiaries		(21,228	)		(18,188	)		(22,438	)
Net cash from (used for) operating activities		21,813			15,929			15,877
Investing activities:
Disposal of minority interest		11,500			—			—
Disposal of investment in subsidiary		—			—			41
Acquisition and additional capitalization of subsidiary, net of cash acquired		(50,000	)		—			—
Net cash from (used for) investing activities		(38,500	)		—			41
Financing activities:
Cash paid on fractional shares on preferred stock conversion to common stock		—			—			(2	)
Proceeds from subordinated debenture, net of issuance costs		73,386			—			—
Purchase of treasury stock		(22,309	)		(13,454	)		(3,909	)
Payment to repurchase series B preferred stock		—			—			(402	)
Cash dividends paid		(8,036	)		(7,118	)		(7,194	)
Net cash used for financing activities		43,041			(20,572	)		(11,507	)
Net change in cash and cash equivalents		26,354			(4,643	)		4,411
Cash and cash equivalents at beginning of year		19,446			24,089			19,678
Cash and cash equivalents at end of year	$	45,800		$	19,446		$	24,089

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Earnings per Common Share (Tables)

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings per Common Share

The factors used in the earnings per share computation follow.

	2021		2020		2019
Basic
Net income	$	40,546	$	32,192	$	33,878
Preferred stock dividends		—		—		647
Less allocation of earnings and dividends to participating securities		173		98		87
Net income available to common shareholders—basic	$	40,373	$	32,094	$	33,144
Weighted average common shares outstanding		15,408,863		16,129,875		15,652,881
Less average participating securities		65,648		49,012		40,013
Weighted average number of shares outstanding used in the calculation of basic earnings per common share		15,343,215		16,080,863		15,612,868
Basic earnings per share	$	2.63	$	2.00	$	2.12
Diluted
Net income available to common shareholders—basic	$	40,373	$	32,094	$	33,144
Preferred stock dividends on convertible preferred stock		—		—		647
Net income available to common shareholders—diluted	$	40,373	$	32,094	$	33,791
Weighted average common shares outstanding used in the calculation of earnings per common share basic		15,343,215		16,080,863		15,612,868
Add: dilutive effects of convertible preferred shares		—		—		1,198,859
Average shares and dilutive potential common shares outstanding—diluted		15,343,215		16,080,863		16,851,740
Diluted earnings per share	$	2.63	$	2.00	$	2.01

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Derivatives (Tables)

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Interest Rate Swap Transactions

The following table reflects the derivatives recorded on the balance sheet as of December 31:

	2021					2020
	Notional Amount		Fair Value			Notional Amount		Fair Value
Included in other assets:
Interest rate swaps with loan customers in an asset position	$	173,490	$	11,072		$	244,748	$	21,700
Total included in other assets			$	11,072				$	21,700
Included in accrued expenses and other liabilities:
Interest rate swaps with loan customers in a liability position	$	71,328	$	1,628		$	—	$	—
Counterparty positions with financial institutions in an asset position		71,328		(1,628	)		—		—
Counterparty positions with financial institutions in a liability position		173,490		11,072			244,748		21,764
Total included in accrued expenses and other liabilities			$	11,072				$	21,764
Gross notional positions with customers	$	244,818				$	244,748
Gross notional positions with financial institution counterparties	$	244,818				$	244,748

Summary of Gain or loss On Derivatives

The effect of swap fair value changes on the Consolidated Statement of Operations for the years ended December 31, 2021, 2020 and 2019 are as follows:

Derivatives Not Designated	Location of Gain or (Loss) Recognized in	Amount of Gain or (Loss) Recognized in Income on Derivatives
as Hedging Instruments	Income on Derivative	2021		2020		2019
Interest rate swaps related to customer loans	Other income		$                64		$                (64)		$                —
Total			$                64		$                (64)		$                —

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Revenue Recognition (Tables)

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Summary of Noninterest Income Segregated By Revenue Streams In-scope and Out-of-scope of Topic 606

The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the years ended December 31, 2021, 2020 and 2019.

		For the years ended December 31,
		2021		2020		2019
Noninterest Income
In-scope of Topic 606:
Service charges	$	5,905	$	5,288	$	6,395
ATM/Interchange fees		5,443		4,472		4,056
Wealth management fees		4,857		3,981		3,670
Tax refund processing fees		2,375		2,375		2,750
Other		1,055		831		911
Noninterest Income (in-scope of Topic 606)		19,635		16,947		17,782
Noninterest Income (out-of-scope of Topic 606)		11,817		11,235		4,661
Total Noninterest Income	$	31,452	$	28,182	$	22,443

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Leases (Tables)

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Summary of Balance Sheet Information Related To Operating Leases

The balance sheet information related to our operating leases were as follows as of December 31, 2021 and 2020:

	Classification on the Consolidated Balance Sheet	December 31, 2021		December 31, 2020
Assets:
Operating lease	Other assets	$	2,314	$	2,678
Liabilities:
Operating lease	Accrued expenses and other liabilities	$	2,314	$	2,678

Summary of Cost Components of Operating Leases

The cost components of our operating leases were as follows for the periods ended December 31, 2021 and 2020:

	December 31, 2021			December 31, 2020
Lease cost
Operating lease cost	$	427		$	499
Short-term lease cost		161			304
Sublease income		(29	)		(26	)
Total lease cost	$	559		$	777

Summary of Maturity of Operating Lease Liabilities

Maturities of our lease liabilities for all operating leases for each of the next five years and thereafter is as follows:

2022	$	420
2023		414
2024		406
2025		308
2026		258
Thereafter		728
Total lease payments	$	2,534
Less: Imputed Interest		220
Present value of lease liabilities	$	2,314

Summary of Weighted Average Remaining Lease Terms And Discount Rates For Operating Leases

The weighted average remaining lease terms and discount rates for all of our operating leases were as follows as of December 31, 2021:

Weighted-average remaining lease term - operating leases (years)	5.60
Weighted-average discount rate - operating leases	2.82	%

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Summary of Significant Accounting Policies - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2021 USD ($) Segment $ / shares	Dec. 31, 2020 USD ($)	Dec. 31, 2019
Significant Accounting Policies [Line Items]
Allowance for loan losses related to commercial, commercial real estate and farm real estate loans	$ 1,500,000
Number of days reaching which loans are considered for nonaccrual status	90 days
Loans past due charged down to the net realizable value period	90 days
Federal Home Loan Bank par value | $ / shares	$ 100
Reserve amount	$ 0
Number of operating segments | Segment	1
ASU 2016-13 [Member]
Significant Accounting Policies [Line Items]
Change in Accounting Principle, Accounting Standards Update, Early Adoption [true false]	true
ASU 2019-05 [Member]
Significant Accounting Policies [Line Items]
Change in Accounting Principle, Accounting Standards Update, Early Adoption [true false]	false
ASU 2020-08 [Member]
Significant Accounting Policies [Line Items]
Change in Accounting Principle, Accounting Standards Update, Adoption Date	Jan. 01, 2021
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false]	true
Change in Accounting Principle, Accounting Standards Update, Early Adoption [true false]	true
Cash and Cash Equivalents [Member] | Interest Rate Swap [Member]
Significant Accounting Policies [Line Items]
Cash pledged as collateral	$ 10,780,000	$ 11,300,000
Unsecured Debt [Member]
Significant Accounting Policies [Line Items]
Retail loans past due charge off period	90 days
Secured Debt [Member]
Significant Accounting Policies [Line Items]
Residential real estate loans past due assessment of value period	180 days
Other Debt [Member]
Significant Accounting Policies [Line Items]
Loans past due charged down to the net realizable value period	90 days
Maximum [Member]
Significant Accounting Policies [Line Items]
Percentage of insurance commission revenue of total revenue	1.00%	1.00%	1.00%
Original maturities for cash and cash equivalents	90 days
Estimated useful life of intangible assets	12 years
Maximum [Member] | Furniture and Equipment [Member]
Significant Accounting Policies [Line Items]
Estimated useful life of asset	7 years
Maximum [Member] | Buildings and Improvements [Member]
Significant Accounting Policies [Line Items]
Estimated useful life of asset	50 years
Maximum [Member] | WSP [Member]
Significant Accounting Policies [Line Items]
Percentage of insurance commission revenue of total revenue	1.00%	1.00%	1.00%
Maximum [Member] | CIVB Risk Management, Inc. [Member]
Significant Accounting Policies [Line Items]
Percentage of insurance commission revenue of total revenue	1.00%	1.00%	1.00%
Minimum [Member]
Significant Accounting Policies [Line Items]
Estimated useful life of intangible assets	5 years
Minimum [Member] | Furniture and Equipment [Member]
Significant Accounting Policies [Line Items]
Estimated useful life of asset	3 years
Minimum [Member] | Buildings and Improvements [Member]
Significant Accounting Policies [Line Items]
Estimated useful life of asset	7 years

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Securities - Available for Sale Securities (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Total securities available for sale	$ 541,297	$ 336,316
Gross Unrealized Gains	20,664	27,183
Gross Unrealized Losses	(2,087)	(35)
Fair Value	559,874	363,464
U.S. Treasury Securities and Obligations of U.S. Government Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Total securities available for sale	48,390	21,479
Gross Unrealized Gains	30	220
Gross Unrealized Losses	(530)	(6)
Fair Value	47,890	21,693
Obligations of States and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Total securities available for sale	281,247	208,013
Gross Unrealized Gains	17,696	21,000
Gross Unrealized Losses	(107)	(1)
Fair Value	298,836	229,012
Mortgage-back Securities in Government Sponsored Entities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost, Total securities available for sale	211,660	106,824
Gross Unrealized Gains	2,938	5,963
Gross Unrealized Losses	(1,450)	(28)
Fair Value	$ 213,148	$ 112,759

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Securities - Amortized Cost and Fair Value of Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Investments Debt And Equity Securities [Abstract]
Amortized Cost, Due in one year or less	$ 3,786
Amortized Cost, Due from one to five years	32,034
Amortized Cost, Due from five to ten years	61,675
Amortized Cost, Due after ten years	232,142
Amortized Cost, Mortgage-backed securities in government sponsored entities	211,660
Amortized Cost, Total securities available for sale	541,297	$ 336,316
Fair Value, Due in one year or less	3,789
Fair Value, Due from one to five years	32,121
Fair Value, Due from five to ten years	63,083
Fair Value, Due after ten years	247,733
Fair Value, Mortgage-backed securities in government sponsored entities	213,148
Fair Value, Total securities available for sale	$ 559,874	$ 363,464

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Securities - Additional Information (Detail) $ in Thousands	Dec. 31, 2021 USD ($) Security	Dec. 31, 2020 USD ($)
Investments Debt And Equity Securities [Abstract]
Carrying value of pledged securities | $	$ 168,435	$ 159,527
Number of securities in portfolio with unrealized losses | Security	50

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Securities - Proceeds from Sales of Securities, Gross Realized Gains and Losses (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Investments Debt And Equity Securities [Abstract]
Sale proceeds	$ 1,810	$ 1,455	$ 17,570
Gross realized gains	1,785	94	47
Gross realized losses	0	0	43
Gains from securities called or settled by the issuer	$ 1	$ 0	$ 28

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Securities - Securities with Unrealized Losses Not Recognized in Income (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Schedule of Available-for-sale Securities [Line Items]
12 Months or less, Fair Value	$ 208,556	$ 14,130
12 Months or less, Unrealized Loss	(1,923)	(34)
More than 12 months, Fair Value	5,137	126
More than 12 months, Unrealized Loss	(164)	(1)
Total Fair Value	213,693	14,256
Total Unrealized Loss	(2,087)	(35)
U.S. Treasury Securities and Obligations of U.S. Government Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
12 Months or less, Fair Value	41,432	6,501
12 Months or less, Unrealized Loss	(473)	(5)
More than 12 months, Fair Value	2,014	126
More than 12 months, Unrealized Loss	(57)	(1)
Total Fair Value	43,446	6,627
Total Unrealized Loss	(530)	(6)
Obligations of States and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
12 Months or less, Fair Value	25,797	1,874
12 Months or less, Unrealized Loss	(107)	(1)
Total Fair Value	25,797	1,874
Total Unrealized Loss	(107)	(1)
Mortgage-backed Securities in Government Sponsored Entities [Member]
Schedule of Available-for-sale Securities [Line Items]
12 Months or less, Fair Value	141,327	5,755
12 Months or less, Unrealized Loss	(1,343)	(28)
More than 12 months, Fair Value	3,123
More than 12 months, Unrealized Loss	(107)
Total Fair Value	144,450	5,755
Total Unrealized Loss	$ (1,450)	$ (28)

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Securities - Schedule of Net Gains and Losses on Equity Investments Recognized in Earnings and Portion of Unrealized Gains and Losses for Period that Relates to Equity Investments (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Investments Debt And Equity Securities [Abstract]
Less: Net gains realized on the sale of equity securities during the period		$ 6
Unrealized gains (losses) recognized in equity securities held at December 31	$ 186	(51)
Net gains (losses) recognized on equity securities during the year	$ 186	$ (57)	$ 121

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Loans - Loan Balances (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Accounts Notes And Loans Receivable [Line Items]
Total Loans	$ 1,997,879	$ 2,057,502
Allowance for loan losses	(26,641)	(25,028)
Net loans	1,971,238	2,032,474
Commercial and Agriculture [Member]
Accounts Notes And Loans Receivable [Line Items]
Total Loans	246,502	409,876
Commercial Real Estate Owner Occupied [Member]
Accounts Notes And Loans Receivable [Line Items]
Total Loans	295,452	278,413
Commercial Real Estate Non Owner Occupied [Member]
Accounts Notes And Loans Receivable [Line Items]
Total Loans	829,310	705,072
Residential Real Estate [Member]
Accounts Notes And Loans Receivable [Line Items]
Total Loans	430,060	442,588
Real Estate Construction [Member]
Accounts Notes And Loans Receivable [Line Items]
Total Loans	157,127	175,609
Farm Real Estate [Member]
Accounts Notes And Loans Receivable [Line Items]
Total Loans	28,419	33,102
Consumer and Other [Member]
Accounts Notes And Loans Receivable [Line Items]
Total Loans	$ 11,009	$ 12,842

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Loans - Additional Information (Detail) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2020 Contract	Dec. 31, 2021 USD ($) Employee Loan	Dec. 31, 2020 USD ($) Loan	Dec. 31, 2019 Contract	Dec. 27, 2020 USD ($)
Accounts Notes And Loans Receivable [Line Items]
Total loans		$ 1,997,879	$ 2,057,502
Net deferred loan fees		2,924	5,998
Number of loans processed | Contract				1
Loans processed		0	0
Loans and Leases Receivable, Net Amount		1,971,238	2,032,474
Paycheck Protection Program Loans [Member]
Accounts Notes And Loans Receivable [Line Items]
Net deferred loan fees		$ 1,762	$ 5,194
Number of loans processed | Loan		1,340	2,300
Loans processed		$ 131,109	$ 268,300		$ 284,500,000
Number of employees | Employee		300
Percentage of reduction in gross revenues		25.00%
Maximum of monthly payroll allowable amount		$ 2,000
Loans and Leases Receivable, Net Amount		6,115	6,986
Commercial and Agriculture [Member]
Accounts Notes And Loans Receivable [Line Items]
Total loans		246,502	409,876
Number of loans processed | Contract	813
Loans processed			431,300
Commercial and Agriculture [Member] | Paycheck Protection Program Loans [Member]
Accounts Notes And Loans Receivable [Line Items]
Total loans		$ 43,209	$ 217,295

XML

Loans - Loans to Directors and Executive Officers Including Immediate Families (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Receivables, Other, Related Parties and Retainage [Abstract]
Balance - Beginning of year	$ 8,475	$ 9,909
New loans and advances	15,522	1,153
Repayments	(6,693)	(3,004)
Effect of changes to related parties	143	417
Balance - End of year	$ 17,447	$ 8,475

XML

Allowance for Loan Losses - Additional Information (Detail) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2020 USD ($) Contract Loan	Dec. 31, 2021 USD ($) Contract SecurityLoan	Dec. 31, 2020 USD ($) SecurityLoan	Dec. 31, 2019 USD ($) Contract SecurityLoan
Accounts Notes And Loans Receivable [Line Items]
Period for calculating Loss migration rates of portfolio segments		3 years
Allowance for loan losses		$ 26,641	$ 25,028
Provision for loan losses		$ 830	$ 10,112	$ 1,035
Percentage of eligible paycheck protection program loan			100.00%
Number of days past due for loans to be considered as nonperforming		90 days
Reasonable period for nonperforming TDRs to be returned to performing status		6 months
Number of days reaching where loans are considered for nonaccrual status		90 days
Conditions where loans are considered for nonaccrual status		A loan may be returned to accruing status only if one of three conditions are met: the loan is well-secured and none of the principal and interest has been past due for a minimum of 90 days; the loan is a TDR and the borrower has made a minimum of six months payments; or the principal and interest payments are reasonably assured and a sustained period of performance has occurred, generally six months.
Gross interest income recorded on nonaccrual loans		$ 307	$ 536	571
Interest income on nonaccrual loans recognized on cash basis		716	477	$ 379
Loans modified as troubled debt restructuring		$ 0	$ 0
Defaulted loans | SecurityLoan		0	0	0
Impaired loans		greater than $350
Number of loans modified | Contract				1
Foreclosed assets		$ 0	$ 31
Allowance for loan losses recorded for acquired loans		0	0
Residential Mortgage [Member]
Accounts Notes And Loans Receivable [Line Items]
Residential mortgages in process of foreclosure			293	$ 741
Commercial and Agriculture [Member]
Accounts Notes And Loans Receivable [Line Items]
Provision for loan losses		(360)	604	500
Loans modified as troubled debt restructuring			431,300
Number of loans modified | Contract	813
Commercial and Agriculture [Member] | Second Modifications [Member]
Accounts Notes And Loans Receivable [Line Items]
Loans modified as troubled debt restructuring		$ 5,142
Number of loans modified | Contract		7
Commercial and Agriculture [Member] | Additional 90 Day Modifications [Member]
Accounts Notes And Loans Receivable [Line Items]
Loans modified as troubled debt restructuring	$ 124,400
Number of loans modified | Loan	100
TDRs [Member]
Accounts Notes And Loans Receivable [Line Items]
Allowance for loan losses		$ 18	$ 35	$ 91

XML

Allowance for Loan Losses - Changes in the Allowance for Loan Losses (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Accounts Notes And Loans Receivable [Line Items]
Beginning balance	$ 25,028	$ 14,767	$ 13,679
Charge-offs	(159)	(465)	(776)
Recoveries	942	614	829
Provision (Credit)	830	10,112	1,035
Ending Balance	26,641	25,028	14,767
Commercial and Agriculture [Member]
Accounts Notes And Loans Receivable [Line Items]
Beginning balance	2,810	2,219	1,747
Charge-offs	(15)	(20)	(114)
Recoveries	165	7	86
Provision (Credit)	(360)	604	500
Ending Balance	2,600	2,810	2,219
Commercial Real Estate Owner Occupied [Member]
Accounts Notes And Loans Receivable [Line Items]
Beginning balance	4,057	2,541	1,962
Charge-offs		(148)	(161)
Recoveries	7	259	289
Provision (Credit)	400	1,405	451
Ending Balance	4,464	4,057	2,541
Commercial Real Estate Non Owner Occupied [Member]
Accounts Notes And Loans Receivable [Line Items]
Beginning balance	12,451	6,584	5,803
Recoveries	395	48	102
Provision (Credit)	1,014	5,819	679
Ending Balance	13,860	12,451	6,584
Residential Real Estate [Member]
Accounts Notes And Loans Receivable [Line Items]
Beginning balance	2,484	1,582	1,531
Charge-offs	(120)	(236)	(294)
Recoveries	302	218	259
Provision (Credit)	(69)	920	86
Ending Balance	2,597	2,484	1,582
Real Estate Construction [Member]
Accounts Notes And Loans Receivable [Line Items]
Beginning balance	2,439	1,250	1,046
Charge-offs			(24)
Recoveries	1	4	3
Provision (Credit)	(630)	1,185	225
Ending Balance	1,810	2,439	1,250
Farm Real Estate [Member]
Accounts Notes And Loans Receivable [Line Items]
Beginning balance	338	344	397
Recoveries	12	13	5
Provision (Credit)	(63)	(19)	(58)
Ending Balance	287	338	344
Consumer and Other [Member]
Accounts Notes And Loans Receivable [Line Items]
Beginning balance	209	247	284
Charge-offs	(24)	(61)	(183)
Recoveries	60	65	85
Provision (Credit)	(69)	(42)	61
Ending Balance	176	209	247
Unallocated [Member]
Accounts Notes And Loans Receivable [Line Items]
Beginning balance	240		909
Provision (Credit)	607	240	$ (909)
Ending Balance	$ 847	$ 240

XML

Allowance for Loan Losses - Ending Allocation of Allowance for Loan Losses and Loan Balances Outstanding (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Accounts Notes And Loans Receivable [Line Items]
Allowance for loan losses, Individually evaluated for impairment	$ 18	$ 107
Allowance for loan losses, Collectively evaluated for impairment	26,623	24,921
Allowance for loan losses, Total	26,641	25,028	$ 14,767	$ 13,679
Outstanding loan balances, Individually evaluated for impairment	1,222	2,666
Outstanding loan balances, Collectively evaluated for impairment	1,996,367	2,054,448
Outstanding loan balances, Total	1,997,879	2,057,502
Receivables Acquired with Deteriorated Credit Quality [Member]
Accounts Notes And Loans Receivable [Line Items]
Loan balance of loans acquired with credit deterioration	290	388
Commercial and Agriculture [Member]
Accounts Notes And Loans Receivable [Line Items]
Allowance for loan losses, Individually evaluated for impairment		73
Allowance for loan losses, Collectively evaluated for impairment	2,600	2,737
Allowance for loan losses, Total	2,600	2,810	2,219	1,747
Outstanding loan balances, Individually evaluated for impairment		74
Outstanding loan balances, Collectively evaluated for impairment	246,502	409,802
Outstanding loan balances, Total	246,502	409,876
Commercial Real Estate Owner Occupied [Member]
Accounts Notes And Loans Receivable [Line Items]
Allowance for loan losses, Individually evaluated for impairment	7	5
Allowance for loan losses, Collectively evaluated for impairment	4,457	4,052
Allowance for loan losses, Total	4,464	4,057	2,541	1,962
Outstanding loan balances, Individually evaluated for impairment	187	980
Outstanding loan balances, Collectively evaluated for impairment	295,265	277,433
Outstanding loan balances, Total	295,452	278,413
Commercial Real Estate Non Owner Occupied [Member]
Accounts Notes And Loans Receivable [Line Items]
Allowance for loan losses, Collectively evaluated for impairment	13,860	12,451
Allowance for loan losses, Total	13,860	12,451	6,584	5,803
Outstanding loan balances, Individually evaluated for impairment		48
Outstanding loan balances, Collectively evaluated for impairment	829,310	705,024
Outstanding loan balances, Total	829,310	705,072
Residential Real Estate [Member]
Accounts Notes And Loans Receivable [Line Items]
Allowance for loan losses, Individually evaluated for impairment	11	29
Allowance for loan losses, Collectively evaluated for impairment	2,586	2,455
Allowance for loan losses, Total	2,597	2,484	1,582	1,531
Outstanding loan balances, Individually evaluated for impairment	526	946
Outstanding loan balances, Collectively evaluated for impairment	429,244	441,254
Outstanding loan balances, Total	430,060	442,588
Residential Real Estate [Member] | Receivables Acquired with Deteriorated Credit Quality [Member]
Accounts Notes And Loans Receivable [Line Items]
Loan balance of loans acquired with credit deterioration	290	388
Real Estate Construction [Member]
Accounts Notes And Loans Receivable [Line Items]
Allowance for loan losses, Collectively evaluated for impairment	1,810	2,439
Allowance for loan losses, Total	1,810	2,439	1,250	1,046
Outstanding loan balances, Collectively evaluated for impairment	157,127	175,609
Outstanding loan balances, Total	157,127	175,609
Farm Real Estate [Member]
Accounts Notes And Loans Receivable [Line Items]
Allowance for loan losses, Collectively evaluated for impairment	287	338
Allowance for loan losses, Total	287	338	344	397
Outstanding loan balances, Individually evaluated for impairment	509	618
Outstanding loan balances, Collectively evaluated for impairment	27,910	32,484
Outstanding loan balances, Total	28,419	33,102
Consumer and Other [Member]
Accounts Notes And Loans Receivable [Line Items]
Allowance for loan losses, Collectively evaluated for impairment	176	209
Allowance for loan losses, Total	176	209	$ 247	284
Outstanding loan balances, Collectively evaluated for impairment	11,009	12,842
Outstanding loan balances, Total	11,009	12,842
Unallocated [Member]
Accounts Notes And Loans Receivable [Line Items]
Allowance for loan losses, Collectively evaluated for impairment	847	240
Allowance for loan losses, Total	$ 847	$ 240		$ 909

XML

Allowance for Loan Losses - Credit Exposures by Internally Assigned Grades (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	$ 1,619,094	$ 1,674,591
Commercial and Agriculture [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	246,502	409,876
Commercial Real Estate Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	295,452	278,413
Commercial Real Estate Non Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	829,310	705,072
Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	82,213	87,601
Real Estate Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	136,414	159,661
Farm Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	28,419	33,102
Consumer and Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	784	866
Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	1,541,115	1,525,796
Pass [Member] | Commercial and Agriculture [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	244,787	401,636
Pass [Member] | Commercial Real Estate Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	290,617	248,316
Pass [Member] | Commercial Real Estate Non Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	764,181	604,909
Pass [Member] | Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	77,594	81,409
Pass [Member] | Real Estate Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	136,149	158,207
Pass [Member] | Farm Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	27,023	30,486
Pass [Member] | Consumer and Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	764	833
Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	32,316	84,017
Special Mention [Member] | Commercial and Agriculture [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	526	4,472
Special Mention [Member] | Commercial Real Estate Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	3,119	19,429
Special Mention [Member] | Commercial Real Estate Non Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	28,042	58,270
Special Mention [Member] | Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	164	668
Special Mention [Member] | Real Estate Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	260	962
Special Mention [Member] | Farm Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	205	216
Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	45,663	64,778
Substandard [Member] | Commercial and Agriculture [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	1,189	3,768
Substandard [Member] | Commercial Real Estate Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	1,716	10,668
Substandard [Member] | Commercial Real Estate Non Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	37,087	41,893
Substandard [Member] | Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	4,455	5,524
Substandard [Member] | Real Estate Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	5	492
Substandard [Member] | Farm Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	1,191	2,400
Substandard [Member] | Consumer and Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	$ 20	$ 33

XML

Allowance for Loan Losses - Performing and Nonperforming Loans (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Recorded Investment [Line Items]
Performing	$ 378,785	$ 382,911
Total	378,785	382,911
Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Performing	347,847	354,987
Total	347,847	354,987
Real Estate Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Performing	20,713	15,948
Total	20,713	15,948
Consumer and Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Performing	10,225	11,976
Total	$ 10,225	$ 11,976

XML

Allowance for Loan Losses - Aging Analysis of Past Due Loans (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 4,070	$ 3,624
Total Loans	1,997,879	2,057,502
Past Due 90 Days and Accruing	0
30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	2,139	1,235
60-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	892	897
90 Days or Greater [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,039	1,492
Financial Asset, Not Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,993,519	2,053,490
Receivables Acquired with Deteriorated Credit Quality [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Purchased Credit-Impaired Loans	290	388
Commercial and Agriculture [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	340	192
Total Loans	246,502	409,876
Commercial and Agriculture [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	249	117
Commercial and Agriculture [Member] | 60-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	13	25
Commercial and Agriculture [Member] | 90 Days or Greater [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	78	50
Commercial and Agriculture [Member] | Financial Asset, Not Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	246,162	409,684
Commercial Real Estate Owner Occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	106	106
Total Loans	295,452	278,413
Commercial Real Estate Owner Occupied [Member] | 60-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		4
Commercial Real Estate Owner Occupied [Member] | 90 Days or Greater [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	106	102
Commercial Real Estate Owner Occupied [Member] | Financial Asset, Not Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	295,346	278,307
Commercial Real Estate Non Owner Occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	4	6
Total Loans	829,310	705,072
Commercial Real Estate Non Owner Occupied [Member] | 90 Days or Greater [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	4	6
Commercial Real Estate Non Owner Occupied [Member] | Financial Asset, Not Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	829,306	705,066
Residential Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	3,569	3,240
Total Loans	430,060	442,588
Residential Real Estate [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,848	1,059
Residential Real Estate [Member] | 60-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	879	867
Residential Real Estate [Member] | 90 Days or Greater [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	842	1,314
Residential Real Estate [Member] | Financial Asset, Not Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	426,201	438,960
Residential Real Estate [Member] | Receivables Acquired with Deteriorated Credit Quality [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Purchased Credit-Impaired Loans	290	388
Real Estate Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans	157,127	175,609
Real Estate Construction [Member] | Financial Asset, Not Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	157,127	175,609
Farm Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		4
Total Loans	28,419	33,102
Farm Real Estate [Member] | 90 Days or Greater [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		4
Farm Real Estate [Member] | Financial Asset, Not Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	28,419	33,098
Consumer and Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	51	76
Total Loans	11,009	12,842
Consumer and Other [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	42	59
Consumer and Other [Member] | 60-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		1
Consumer and Other [Member] | 90 Days or Greater [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	9	16
Consumer and Other [Member] | Financial Asset, Not Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 10,958	$ 12,766

XML

Allowance for Loan Losses - Summary of Nonaccrual Loans Excluding Purchased Credit-Impaired (PCI) Loans (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Recorded Investment [Line Items]
Total, Non-Accrual Status	$ 3,673	$ 5,125
Commercial and Agriculture [Member]
Financing Receivable, Recorded Investment [Line Items]
Total, Non-Accrual Status	78	139
Commercial Real Estate Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total, Non-Accrual Status	334	964
Commercial Real Estate Non Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total, Non-Accrual Status	4	6
Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total, Non-Accrual Status	3,232	3,893
Real Estate Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Total, Non-Accrual Status	5	7
Farm Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total, Non-Accrual Status		85
Consumer and Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Total, Non-Accrual Status	$ 20	$ 31

XML

Allowance for Loan Losses - Schedule of TDR (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($) Contract
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of loans modified | Contract	1
Pre- Modification Outstanding Recorded Investment	$ 382
Post-Modification Outstanding Recorded Investment	$ 382
Commercial Real Estate Non Owner Occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of loans modified | Contract	1
Pre- Modification Outstanding Recorded Investment	$ 382
Post-Modification Outstanding Recorded Investment	$ 382

XML

Allowance for Loan Losses - Schedule of Loan Modifications (Detail) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2020 Contract	Dec. 31, 2021 USD ($) Contract	Dec. 31, 2019 Contract	Dec. 31, 2020 USD ($)
Financing Receivable Modifications [Line Items]
Number of loans modified			1
Loans modified as troubled debt restructuring | $		$ 0		$ 0
Second Modifications [Member] | CARES Act [Member]
Financing Receivable Modifications [Line Items]
Number of loans modified		7
Loans modified as troubled debt restructuring | $		$ 5,142
Percent of Loans Outstanding		0.26%
Commercial and Agriculture [Member]
Financing Receivable Modifications [Line Items]
Number of loans modified	813
Loans modified as troubled debt restructuring | $				$ 431,300
Commercial and Agriculture [Member] | Second Modifications [Member]
Financing Receivable Modifications [Line Items]
Number of loans modified		7
Loans modified as troubled debt restructuring | $		$ 5,142
Commercial and Agriculture [Member] | Second Modifications [Member] | CARES Act [Member]
Financing Receivable Modifications [Line Items]
Number of loans modified		2
Loans modified as troubled debt restructuring | $		$ 498
Percent of Loans Outstanding		0.03%
Commercial Real Estate Non Owner Occupied [Member]
Financing Receivable Modifications [Line Items]
Number of loans modified			1
Commercial Real Estate Non Owner Occupied [Member] | Second Modifications [Member] | CARES Act [Member]
Financing Receivable Modifications [Line Items]
Number of loans modified		5
Loans modified as troubled debt restructuring | $		$ 4,644
Percent of Loans Outstanding		0.24%

XML

Allowance for Loan Losses - Impaired Financing Receivables Excluding PCI Loans - Recorded Investment and Unpaid Principal Balances (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Financing Receivable, Impaired [Line Items]
Impaired financing receivables, with no related allowance recorded, Recorded Investment	$ 1,012	$ 2,338
Impaired financing receivables, with no related allowance recorded, Unpaid Principal Balance	1,037	2,363
Impaired financing receivables, with an allowance recorded, Recorded Investment	210	328
Impaired financing receivables, with an allowance recorded, Unpaid Principal Balance	214	332
Impaired financing receivables, with an allowance recorded, Related Allowance	18	107
Impaired financing receivables, Recorded Investment, Total	1,222	2,666
Impaired financing receivables, Unpaid Principal Balance, Total	1,251	2,695
Impaired financing receivables, Related Allowance, Total	18	107
Commercial and Agriculture [Member]
Financing Receivable, Impaired [Line Items]
Impaired financing receivables, with an allowance recorded, Recorded Investment		74
Impaired financing receivables, with an allowance recorded, Unpaid Principal Balance		74
Impaired financing receivables, with an allowance recorded, Related Allowance		73
Impaired financing receivables, Recorded Investment, Total		74
Impaired financing receivables, Unpaid Principal Balance, Total		74
Impaired financing receivables, Related Allowance, Total		73
Commercial Real Estate Owner Occupied [Member]
Financing Receivable, Impaired [Line Items]
Impaired financing receivables, with no related allowance recorded, Recorded Investment		757
Impaired financing receivables, with no related allowance recorded, Unpaid Principal Balance		757
Impaired financing receivables, with an allowance recorded, Recorded Investment	187	223
Impaired financing receivables, with an allowance recorded, Unpaid Principal Balance	187	223
Impaired financing receivables, with an allowance recorded, Related Allowance	7	5
Impaired financing receivables, Recorded Investment, Total	187	980
Impaired financing receivables, Unpaid Principal Balance, Total	187	980
Impaired financing receivables, Related Allowance, Total	7	5
Commercial Real Estate Non Owner Occupied [Member]
Financing Receivable, Impaired [Line Items]
Impaired financing receivables, with no related allowance recorded, Recorded Investment		48
Impaired financing receivables, with no related allowance recorded, Unpaid Principal Balance		48
Impaired financing receivables, Recorded Investment, Total		48
Impaired financing receivables, Unpaid Principal Balance, Total		48
Residential Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Impaired financing receivables, with no related allowance recorded, Recorded Investment	503	915
Impaired financing receivables, with no related allowance recorded, Unpaid Principal Balance	528	940
Impaired financing receivables, with an allowance recorded, Recorded Investment	23	31
Impaired financing receivables, with an allowance recorded, Unpaid Principal Balance	27	35
Impaired financing receivables, with an allowance recorded, Related Allowance	11	29
Impaired financing receivables, Recorded Investment, Total	526	946
Impaired financing receivables, Unpaid Principal Balance, Total	555	975
Impaired financing receivables, Related Allowance, Total	11	29
Farm Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Impaired financing receivables, with no related allowance recorded, Recorded Investment	509	618
Impaired financing receivables, with no related allowance recorded, Unpaid Principal Balance	509	618
Impaired financing receivables, Recorded Investment, Total	509	618
Impaired financing receivables, Unpaid Principal Balance, Total	$ 509	$ 618

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Allowance for Loan Losses - Impaired Loans - Average Recorded Investment and Interest Income Recognized (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	$ 1,632	$ 2,859	$ 3,085
Interest Income Recognized	74	116	172
Commercial and Agriculture [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	15	88	367
Interest Income Recognized		4	33
Commercial Real Estate Owner Occupied [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	396	520	456
Interest Income Recognized	18	27	32
Commercial Real Estate Non Owner Occupied [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	23	243	308
Interest Income Recognized	1	16	20
Residential Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	629	1,361	1,271
Interest Income Recognized	31	43	58
Farm Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	569	647	683
Interest Income Recognized	$ 24	$ 26	$ 29

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Allowance for Loan Losses - Schedule of Changes in Amortized Yield for PCI Loans (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Balance at beginning of period	$ 225	$ 255
Acquisition of PCI loans	0	0
Accretion	(77)	(336)
Transfers from non-accretable to accretable	69	306
Balance at end of period	$ 217	$ 225

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Allowance for Loan Losses - Schedule of Loans Acquired and Accounted (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Receivables [Abstract]
Outstanding balance	$ 512	$ 687
Carrying amount	$ 290	$ 388

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Other Comprehensive Income (Loss) - Components of Other Comprehensive Income Loss (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Accumulated Other Comprehensive Income Loss [Line Items]
Other Comprehensive Income (Loss), Before Tax	$ (7,339)	$ 9,804	$ 10,539
Other Comprehensive Income (Loss), Tax Effect	(1,540)	2,059	2,213
Other Comprehensive Income (Loss), Net of Tax	(5,799)	7,745	8,326
Net unrealized Gains (Losses) on Investment Securities [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive income (loss) before reclassifications, Before Tax	(8,570)	10,935	13,368
Amounts reclassified from accumulated other comprehensive income (loss), Before Tax	(1)	(94)	(32)
Other Comprehensive Income (Loss), Before Tax	(8,571)	10,841	13,336
Other comprehensive income (loss) before reclassifications, Tax Effect	(1,799)	2,297	2,807
Amounts reclassified from accumulated other comprehensive income (loss), Tax Effect	0	(20)	(7)
Other Comprehensive Income (Loss), Tax Effect	(1,799)	2,277	2,800
Other comprehensive income (loss) before reclassifications, Net of Tax	(6,771)	8,638	10,561
Amounts reclassified from accumulated other comprehensive income (loss), Net of Tax	(1)	(74)	(25)
Other Comprehensive Income (Loss), Net of Tax	(6,772)	8,564	10,536
Defined Benefit Plans [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Other comprehensive income (loss) before reclassifications, Before Tax	992	(1,326)	(2,953)
Amounts reclassified from accumulated other comprehensive income (loss), Before Tax	240	289	156
Other Comprehensive Income (Loss), Before Tax	1,232	(1,037)	(2,797)
Other comprehensive income (loss) before reclassifications, Tax Effect	209	(279)	(620)
Amounts reclassified from accumulated other comprehensive income (loss), Tax Effect	50	61	33
Other Comprehensive Income (Loss), Tax Effect	259	(218)	(587)
Other comprehensive income (loss) before reclassifications, Net of Tax	783	(1,047)	(2,333)
Amounts reclassified from accumulated other comprehensive income (loss), Net of Tax	190	228	123
Other Comprehensive Income (Loss), Net of Tax	$ 973	$ (819)	$ (2,210)

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Other Comprehensive Income (Loss) - Changes in Each Component of Accumulated Other Comprehensive Income (Loss), Net of Tax (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance	$ 350,108	$ 330,126	$ 298,898
Net current-period other comprehensive income (loss)	(5,799)	7,745	8,326
Ending balance	355,212	350,108	330,126
Unrealized Gains (Losses) on Available-for-Sale Securities [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance	21,447	12,883	2,347
Other comprehensive income (loss) before reclassifications	(6,771)	8,638	10,561
Amounts reclassified from accumulated other comprehensive income (loss)	(1)	(74)	(25)
Net current-period other comprehensive income (loss)	(6,772)	8,564	10,536
Ending balance	14,675	21,447	12,883
Defined Benefit Pension Items [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance	(6,828)	(6,009)	(3,799)
Other comprehensive income (loss) before reclassifications	783	(1,047)	(2,333)
Amounts reclassified from accumulated other comprehensive income (loss)	190	228	123
Net current-period other comprehensive income (loss)	973	(819)	(2,210)
Ending balance	(5,855)	(6,828)	(6,009)
Accumulated Other Comprehensive Income (Loss) [Member]
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning balance	14,619	6,874	(1,452)
Other comprehensive income (loss) before reclassifications	(5,988)	7,591	8,228
Amounts reclassified from accumulated other comprehensive income (loss)	189	154	98
Net current-period other comprehensive income (loss)	(5,799)	7,745	8,326
Ending balance	$ 8,820	$ 14,619	$ 6,874

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Other Comprehensive Income (Loss) - Amounts Reclassified Out of Each Component of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net gain on sale of securities	$ 1,786	$ 94	$ 32
Other operating expenses	(13,001)	(9,096)	(9,288)
Income taxes	(7,017)	(4,940)	(5,683)
Net income	40,546	32,192	33,878
Reclassification out of Accumulated Other Comprehensive Loss [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net income	(189)	(154)	(98)
Unrealized Gains (Losses) on Available-for-Sale Securities [Member] | Reclassification out of Accumulated Other Comprehensive Loss [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net gain on sale of securities	1	94	32
Income taxes		(20)	(7)
Net income	1	74	25
Accumulated Defined Benefit Plans Adjustment, Actuarial Losses [Member] | Reclassification out of Accumulated Other Comprehensive Loss [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other operating expenses	(240)	(289)	(156)
Income taxes	50	61	33
Net income	$ (190)	$ (228)	$ (123)

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Premises and Equipment - Year-End Premises and Equipment (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 60,061	$ 58,563
Accumulated depreciation	(37,616)	(35,983)
Premises and equipment, net	22,445	22,580
Land and Improvements [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	6,970	6,879
Buildings and Improvements [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	29,305	28,835
Furniture and Equipment [Member]
Property, Plant and Equipment [Line Items]
Premises and equipment, gross	$ 23,786	$ 22,849

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Premises and Equipment - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Depreciation	$ 1,976	$ 2,253	$ 2,240

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Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Acquired Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 76,851	$ 76,851
Amortization of core deposit intangible assets	890	913	$ 945
Aggregate mortgage servicing rights (MSRs) amortization	572	524	247
Fair value of servicing rights	$ 2,642	$ 2,246
Fair value of servicing rights, discount rate	12.00%	12.00%
Mortgage loans	$ 405,786	$ 353,473	206,950
Servicing fees	$ 947	$ 634	$ 502
Minimum [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value of servicing rights prepayment speed	8.00%	12.00%
Maximum [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value of servicing rights prepayment speed	35.00%	50.00%
Weighted Average [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Fair value of servicing rights, discount rate	0.41%	0.93%

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Goodwill and Intangible Assets - Schedule of Acquired Intangible Assets (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Acquired Finite-Lived Intangible Assets [Line Items]
Net Carrying Amount	$ 7,581
Core deposit intangibles [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	8,527	$ 14,792
Accumulated Amortization	3,588	8,963
Net Carrying Amount	$ 4,939	$ 5,829

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Goodwill and Intangible Assets - Schedule of Mortgage Servicing Rights (MSRs) and Related Valuation Allowance (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Mortgage Servicing Rights:
Beginning of year	$ 2,246	$ 1,562
Additions	764	1,310
Amortized to expense	572	524
Change in valuation allowance	(204)	102
End of year	2,642	2,246
Valuation allowance:
Beginning of year	204	102
Additions expensed	261	162
Reductions credited to operations	$ (465)	(60)
End of year		$ 204

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Goodwill and Intangible Assets - Schedule of Estimated Amortization Expense (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Acquired Finite-Lived Intangible Assets [Line Items]
2022	$ 1,005
2023	978
2024	941
2025	845
2026	805
Thereafter	3,007
Net Carrying Amount	7,581
MSRs [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
2022	137
2023	137
2024	137
2025	137
2026	135
Thereafter	1,959
Net Carrying Amount	2,642
Core deposit intangibles [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
2022	868
2023	841
2024	804
2025	708
2026	670
Thereafter	1,048
Net Carrying Amount	$ 4,939	$ 5,829

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Interest-Bearing Deposits - Summary of Interest-Bearing Deposits (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Deposits [Abstract]
Demand	$ 537,510	$ 410,139
Savings and Money markets	843,837	771,612
$250 and over	55,011	70,989
Certificates of Deposit: Other	149,521	169,453
Individual Retirement Accounts	41,916	46,396
Total	$ 1,627,795	$ 1,468,589

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Interest-Bearing Deposits - Scheduled Maturities of Certificates of Deposit (Detail) $ in Thousands	Dec. 31, 2021 USD ($)
Deposits [Abstract]
2022	$ 173,834
2023	45,195
2024	18,810
2025	3,829
2026	3,596
Thereafter	1,184
Total	$ 246,448

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Interest-Bearing Deposits - Additional Information (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Deposits [Line Items]
Total deposits	$ 2,416,701	$ 2,189,398
Total of CDs and IRAs	58,367
Cash, FDIC insured amount	250,000
Brokered deposit	26,610
Principal officers, directors, and their affiliates [Member]
Deposits [Line Items]
Total deposits	$ 7,690	$ 12,487

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Short-Term Borrowings - Summary of Federal Funds Purchased and Other Short-term Borrowings (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Federal Funds Purchased [Member]
Short-term Debt [Line Items]
Maximum indebtedness during the year	$ 50,000,000	$ 50,000,000	$ 20,000,000
Average balance during the year	$ 137,000	$ 228,000	$ 137,000
Average rate paid during the year	0.73%	0.35%	2.19%
Short Term Borrowings, FHLB advances [Member]
Short-term Debt [Line Items]
Outstanding balance at year end			$ 101,500,000
Maximum indebtedness during the year		$ 102,700,000	192,700,000
Average balance during the year		$ 8,151,000	$ 112,088,000
Average rate paid during the year		1.64%	2.32%
Interest rate on year end balance			1.63%

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Federal Home Loan Bank Advances - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2021	Dec. 31, 2020
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Long-term Federal Home Loan Bank advances		$ 75,000	$ 125,000
Maturities from May 2029 through October 2029, fixed rates		1.03%
Maturities, to		2029-10
Outstanding letters of credit with FHLB		$ 21,300	20,000
FHLB borrowings collateralized by residential mortgage loans		737,389	$ 217,500
FHLB maximum borrowing capacity		677,834
FHLB remaining borrowing capacity		581,534
Prepaid advances	$ 50,000
FHLB Interest rate	2.05%
FHLB advances maturity period	8 years
Pre loss tax	$ 3,717
Prepaid penalty	$ 3,717
Putable Option [Member] | Advances One [Member]
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
FHLB advances		$ 75,000
FHLB puttable date		October 2020 and every quarter thereafter.
Weighted Average [Member]
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items]
Maturities from May 2029 through October 2029, fixed rates		1.03%

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Federal Home Loan Bank Advances - Scheduled Principal Reductions of Federal Home Loan Bank Advances Outstanding (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Advances from Federal Home Loan Banks [Abstract]
2029	$ 75,000
Total	$ 75,000	$ 125,000

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Securities Sold Under Agreements To Repurchase - Summary of Securities Pledged as Collateral Under Repurchase Agreements (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Offsetting Liabilities [Line Items]
Gross amount of recognized liabilities for repurchase agreements	$ 25,495	$ 28,914
Amounts related to agreements not included in offsetting disclosures above	0	0
Total securities pledged	25,495	28,914	$ 18,674
U.S.Treasury Securities [Member]
Offsetting Liabilities [Line Items]
Total securities pledged	16,478	899
Obligations of U.S. Government Agencies [Member]
Offsetting Liabilities [Line Items]
Total securities pledged	$ 9,017	$ 28,015

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Securities Sold Under Agreements to Repurchase - Schedule of Securities Sold Under Agreements to Repurchase (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Debt Disclosure [Abstract]
Outstanding balance at year end	$ 25,495	$ 28,914	$ 18,674
Average balance during the year	$ 24,390	$ 24,390	$ 18,321
Average interest rate during the year	0.09%	0.10%	0.10%
Maximum month-end balance during the year	$ 34,200	$ 31,885	$ 21,970
Weighted average interest rate at year end	0.05%	0.10%	0.10%

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Subordinated Debentures - Additional Information (Detail) $ in Thousands		1 Months Ended			12 Months Ended
	Nov. 30, 2021 USD ($)	Mar. 31, 2007 USD ($)	Mar. 31, 2003 USD ($)	Mar. 31, 2002 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2007 Trust_Preferred_Securities	Sep. 30, 2007 USD ($)
Subordinated Borrowing [Line Items]
Redeem and refinance of floating rate subordinated debenture		$ 5,000
Refinancing at face value, reduction rate					2.00%
Subordinated debenture, maturity period					30 years
Fixed Interest Rate	3.25%
London Interbank Offered Rate (LIBOR) [Member]
Subordinated Borrowing [Line Items]
Debt Instrument, Interest Rate, Basis for Effective Rate					3
Futura Ban Corp [Member]
Subordinated Borrowing [Line Items]
Number of additional trust preferred securities acquired | Trust_Preferred_Securities						2
Subordinated Debentures [Member]
Subordinated Borrowing [Line Items]
Subordinated debenture, maturity period					5 years
Debt, face amount					$ 102,813
Subordinated debenture, maturity date					Jun. 15, 2035
Senior Subordinated Notes [Member]
Subordinated Borrowing [Line Items]
Redemption Price Percentage					100.00%
Senior Subordinated Notes [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member]
Subordinated Borrowing [Line Items]
Description about Subordinated Notes Interest Rate	219 basis points
2.37% Debenture [Member]
Subordinated Borrowing [Line Items]
Debt, face amount					$ 12,500
Debt, variable interest rate					2.37%
Redemption of subordinated debentures description					The Company may redeem the subordinated debentures, in whole or in part, in a principal amount with integral multiples of $1,000, at 100% of the principal amount, plus accrued and unpaid interest.
Subordinated Note Purchase Agreement [Member]
Subordinated Borrowing [Line Items]
Subordinated debenture, maturity date	Dec. 31, 2031
Aggregate Principal Amount	$ 75,000
Floating rate Interest	3.25%
6.05% Fixed Rate Trust Preferred Securities [Member]
Subordinated Borrowing [Line Items]
Debt, face amount							$ 12,500
Debt, interest rate							6.05%
Debt instrument fixed interest rate period					5 years
3.28% Debenture [Member]
Subordinated Borrowing [Line Items]
Debt, face amount					$ 7,500
Debt, variable interest rate					3.28%
1.72% Debenture [Member]
Subordinated Borrowing [Line Items]
Debt, face amount					$ 5,000
Debt, variable interest rate					1.72%
1.78% Debenture [Member] | Futura TPF Trust I [Member]
Subordinated Borrowing [Line Items]
Debt, face amount					$ 2,500
Debt instrument, variable interest rate percentage					1.78%
1.78% Debenture [Member] | Futura TPF Trust II [Member]
Subordinated Borrowing [Line Items]
Debt, face amount					$ 1,927
Debt instrument, variable interest rate percentage					1.78%
Subordinated Debenture [Member]
Subordinated Borrowing [Line Items]
Issuance of Trust Preferred Securities in exchange for Subordinated Debentures				$ 5,000
Trust Preferred Securities [Member]
Subordinated Borrowing [Line Items]
Issuance of Trust Preferred Securities in exchange for Subordinated Debentures			$ 7,500
Trust Preferred Securities [Member] | Futura TPF Trust I [Member]
Subordinated Borrowing [Line Items]
Acquired trust preferred securities					$ 2,500
Trust Preferred Securities [Member] | Futura TPF Trust II [Member]
Subordinated Borrowing [Line Items]
Acquired trust preferred securities					$ 1,927

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Income Taxes - Schedule of Income Tax (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Expense (Benefit), Continuing Operations [Abstract]
Current	$ 5,111	$ 6,947	$ 4,713
State	587	270	307
Deferred	1,319	(2,277)	663
Income tax expense	$ 7,017	$ 4,940	$ 5,683

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Income Taxes - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Statutory federal income tax rate	21.00%	21.00%	21.00%
Valuation allowance	$ 0	$ 0
Liability for uncertain tax positions, current	0
Unrecognized tax benefits	$ 0

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Income Taxes - Effective Tax Rates Differed from Statutory Federal Income Tax Rate (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Income taxes computed at the statutory federal tax rate	$ 9,988	$ 7,798	$ 8,308
Add (subtract) tax effect of:
Nontaxable interest income, net of nondeductible interest expense	(1,315)	(1,293)	(1,194)
Low income housing tax credit	(1,402)	(1,186)	(903)
Cash surrender value of BOLI	(252)	(205)	(211)
Change in tax position BOLI			(353)
Other	(2)	(174)	36
Income tax expense	$ 7,017	$ 4,940	$ 5,683

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Income Taxes - Summary of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Deferred tax assets
Allowance for loan losses	$ 5,595	$ 5,256
Deferred compensation	1,213	1,201
Pension costs	56	304
Intangible assets	231	312
Net operating loss carryforward		509
Deferred loan fees	614	1,260
Other	713	745
Deferred tax asset	8,422	9,587
Deferred tax liabilities
Tax depreciation in excess of book depreciation	(973)	(851)
Discount accretion on securities	(86)	(10)
FHLB stock dividends	(969)	(969)
Unrealized gain on securities available for sale	(3,806)	(5,606)
Prepaids	(276)	(325)
Other	(1,243)	(979)
Deferred tax liability	(7,353)	(8,740)
Net deferred tax asset	$ 1,069	$ 847

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Retirement Plans - Additional Information (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($) Employee	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Defined Benefit Plan Disclosure [Line Items]
Plan name	401(k) plan
Matching contribution to 401(k) plan	$ 1,258	$ 1,226	$ 1,074
Employer matching contribution description	The Company’s matching contribution is 100% of an employee’s first three percent contributed and 50% of the next two percent contributed.
Pension plan eligibility age of employees	20 years 7 months 6 days
Pension plan eligibility service period of employees	6 months
Pension plan eligibility service hours of employees	1000 hours
Additional benefits under pension plan	$ 0
Interest expense	6,317	10,138	12,954
Unrecognized actuarial loss in accumulated other comprehensive income (loss), net of tax	5,855	6,828
Unrecognized actuarial loss in accumulated other comprehensive income (loss), tax	1,556	1,815
Accumulated benefit obligation for defined benefit pension plan	15,384	$ 16,656
Estimated net loss that will be amortized over the next fiscal year	$ 240
Incurred settlement cost			$ 0
Rate of compensation increase used to determine the benefit obligation	0.00%	0.00%	0.00%
Long-term rate of return on plan assets	3.84%	4.44%	4.96%
Expected future employer contributions	$ 0
Employer contribution	0	$ 0
Funded status at end of year	264	1,399
Other Operating Income (Expense) [Member]
Defined Benefit Plan Disclosure [Line Items]
Incurred settlement cost	(18)	0	$ 0
Shortfall Agreements [Member]
Defined Benefit Plan Disclosure [Line Items]
Pension shortfall expense	130	130	161
Interest expense	$ 9	9	20
Number of individuals under plan | Employee	10
Supplemental Retirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Maximum retirement year for participants	10 years
Liability recorded for supplemental retirement plan	$ 3,334	3,097
Expenses recorded for supplemental retirement plan	404	429	394
Total distribution to participant	$ 167	$ 168	$ 128

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Retirement Plans - Information about Pension Plan (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Change in benefit obligation:
Beginning benefit obligation	$ 16,656	$ 15,570
Service cost	0
Interest cost	378	484	$ 479
Actuarial (gain)/loss	(921)	1,898
Benefits paid	(711)	(1,296)
Settlement payments	(18)
Ending benefit obligation	15,384	16,656	15,570
Change in plan assets, at fair value:
Beginning plan assets	15,257	15,183
Actual return	574	1,370
Employer contribution	0	0
Benefits paid	(711)	(1,296)
Ending plan assets	15,120	15,257	$ 15,183
Funded status at end of year	$ (264)	$ (1,399)

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Retirement Plans - Components of Net Periodic Pension Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Retirement Benefits [Abstract]
Interest cost	$ 378	$ 484	$ 479
Expected return on plan assets	(574)	(748)	(811)
Net amortization and deferral	240	289	156
Net periodic pension cost (benefit)	44	25	(176)
Additional loss due to settlement			0
Total pension cost (benefit)	44	25	(176)
Net loss (gain) recognized in other comprehensive income	(854)	986	2,798
Total recognized in net periodic benefit cost and other comprehensive loss (before tax)	$ (810)	$ 1,011	$ 2,622

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Retirement Plans - Weighted Average Assumptions Used to Determine Benefit Obligations and Net Periodic Pension Cost (Detail)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Retirement Benefits [Abstract]
Discount rate on benefit obligation	2.74%	2.39%	3.13%
Long-term rate of return on plan assets	3.84%	4.44%	4.96%
Rate of compensation increase	0.00%	0.00%	0.00%
Discount rate on benefit obligation	2.39%	3.13%	4.14%
Long-term rate of return on plan assets	4.44%	4.96%	7.00%
Rate of compensation increase	0.00%	0.00%	0.00%

XML

Retirement Plans - Schedule of Pension Plan Asset Allocation and Target Allocation by Asset Category (Detail)	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Defined Benefit Plan Disclosure [Line Items]
Percentage of Plan Assets at Year-end		100.00%	100.00%
Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Percentage of Plan Assets at Year-end		20.00%	20.00%
Equity Securities [Member] | Minimum [Member]
Defined Benefit Plan Disclosure [Line Items]
Target Allocation	0.00%
Equity Securities [Member] | Maximum [Member]
Defined Benefit Plan Disclosure [Line Items]
Target Allocation	30.00%
Debt Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Percentage of Plan Assets at Year-end		80.00%	80.00%
Debt Securities [Member] | Minimum [Member]
Defined Benefit Plan Disclosure [Line Items]
Target Allocation	70.00%
Debt Securities [Member] | Maximum [Member]
Defined Benefit Plan Disclosure [Line Items]
Target Allocation	100.00%

XML

Retirement Plans - Summary of Investments Measured at Fair Value Based on NAV Per Share (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]
Fair Value	$ 15,120	$ 15,257	$ 15,183
Common/Collective Trust Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Redemption Frequency (if currently eligible)	Daily	Daily
Redemption Notice Period	1 day	1 day
Common/Collective Trust Funds [Member] | Fair Value Measured at Net Asset Value Per Share
Defined Benefit Plan Disclosure [Line Items]
Fair Value	$ 15,120	$ 15,257

XML

Retirement Plans - Summary of Expected Benefit Payments (Detail) $ in Thousands	Dec. 31, 2021 USD ($)
Defined Benefit Plan, Expected Future Benefit Payment [Abstract]
2022	$ 246
2023	288
2024	327
2025	391
2026	491
2027 through 2031	3,100
Total	$ 4,843

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Equity Incentive Plan - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted shares vesting service period		3 years
Share based compensation - Civista BOD		$ 702	$ 617	$ 531
Expected future compensation expense		$ 831
Weighted average remaining life of grants related to unvested awards not yet recognized		2 years 3 months 18 days
Civista Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted common shares granted	8,792		14,266	8,946
Share based compensation - Civista BOD		$ 196	$ 196	$ 196
2014 Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares under stock option plan authorized for issuance					375,000
Number of shares available for grant under stock option plan		154,123
Options granted		0	0	0
Share based compensation expense		$ 506	$ 421	$ 335
Expected future compensation expense		$ 831
Weighted average remaining life of grants related to unvested awards not yet recognized		2 years 3 months 18 days
2014 Incentive Plan [Member] | Civista Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Director retainer fees		$ 196	$ 196	$ 196

XML

Equity Incentive Plan - Summary of Company's Restricted Stock (Detail) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($) $ / shares shares
Schedule Of Nonvested Stock Option Activity [Line Items]
Number of Restricted Shares, Granted	69,840
Expected future remaining compensation expense | $	$ 831
Expected future compensation expense, restricted shares remaining vesting period	2 years 3 months 18 days
Restricted Shares Awarded on March 20, 2017 [Member]
Schedule Of Nonvested Stock Option Activity [Line Items]
Number of Restricted Shares, Granted	1,198
Date of Award	Mar. 20, 2017
Expected future compensation expense, restricted shares remaining vesting period	0 years
Restricted Shares Awarded on April 10, 2018 [Member
Schedule Of Nonvested Stock Option Activity [Line Items]
Number of Restricted Shares, Granted	3,114
Date of Award	Apr. 10, 2018
Expected future remaining compensation expense | $	$ 31
Expected future compensation expense, restricted shares remaining vesting period	1 year
Restricted Shares Awarded on March 14, 2019 [Member]
Schedule Of Nonvested Stock Option Activity [Line Items]
Number of Restricted Shares, Granted	3,174
Date of Award	Mar. 14, 2019
Expected future compensation expense, restricted shares remaining vesting period	0 years
Restricted Shares Awarded on March 14, 2019 [Member]
Schedule Of Nonvested Stock Option Activity [Line Items]
Number of Restricted Shares, Granted	6,560
Date of Award	Mar. 14, 2019
Expected future remaining compensation expense | $	$ 79
Expected future compensation expense, restricted shares remaining vesting period	2 years
Restricted Shares Awarded on March 14, 2020 [Member]
Schedule Of Nonvested Stock Option Activity [Line Items]
Number of Restricted Shares, Granted	8,595
Date of Award	Mar. 14, 2020
Expected future remaining compensation expense | $	$ 85
Expected future compensation expense, restricted shares remaining vesting period	1 year
Restricted Shares Awarded on March 14, 2020 [Member]
Schedule Of Nonvested Stock Option Activity [Line Items]
Number of Restricted Shares, Granted	10,390
Date of Award	Mar. 14, 2020
Expected future remaining compensation expense | $	$ 148
Expected future compensation expense, restricted shares remaining vesting period	3 years
Restricted Shares Awarded on March 3, 2021 [Member]
Schedule Of Nonvested Stock Option Activity [Line Items]
Number of Restricted Shares, Granted	16,277
Date of Award	Mar. 03, 2021
Expected future remaining compensation expense | $	$ 226
Expected future compensation expense, restricted shares remaining vesting period	4 years
Restricted Shares Awarded on March 3, 2021 [Member]
Schedule Of Nonvested Stock Option Activity [Line Items]
Number of Restricted Shares, Granted	20,532
Date of Award	Mar. 03, 2021
Expected future remaining compensation expense | $	$ 262
Expected future compensation expense, restricted shares remaining vesting period	2 years
Restricted Stock [Member]
Schedule Of Nonvested Stock Option Activity [Line Items]
Number of Restricted Shares, Nonvested at beginning of period	54,274
Number of Restricted Shares, Granted	39,139
Number of Restricted Shares, Vested	(20,275)
Number of Restricted Shares, Forfeited	(3,298)
Number of Restricted Shares, Nonvested at end of period	69,840
Weighted Average Grant Date Fair Value, Nonvested at beginning of period | $ / shares	$ 20.90
Weighted Average Grant Date Fair Value, Granted | $ / shares	19.17
Weighted Average Grant Date Fair Value, Vested | $ / shares	20.35
Weighted Average Grant Date Fair Value, Forfeited | $ / shares	19.74
Weighted Average Grant Date Fair Value, Nonvested at end of period | $ / shares	$ 20.14

XML

Fair Value Measurement - Assets and Liabilities Measured at Fair Value (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	$ 559,874	$ 363,464
Equity securities	1,072	886
(Level 2) [Member] | Assets Measured at Fair Value on a Recurring Basis [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	559,874	363,464
Equity securities	1,072	886
(Level 2) [Member] | Assets Measured at Fair Value on a Recurring Basis [Member] | Swap [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Swap asset	11,072	21,700
Swap liability	11,072	21,764
(Level 2) [Member] | Assets Measured at Fair Value on a Recurring Basis [Member] | U.S. Treasury Securities and Obligations of U.S. Government Agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	47,890	21,693
(Level 2) [Member] | Assets Measured at Fair Value on a Recurring Basis [Member] | Obligations of States and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	298,836	229,012
(Level 2) [Member] | Assets Measured at Fair Value on a Recurring Basis [Member] | Mortgage-backed Securities in Government Sponsored Entities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	213,148	112,759
(Level 3) [Member] | Assets Measured at Fair Value on a Nonrecurring Basis [Member] | Impaired Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	11	1
(Level 3) [Member] | Assets Measured at Fair Value on a Nonrecurring Basis [Member] | Other Real Estate Owned [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		31
(Level 3) [Member] | Assets Measured at Fair Value on a Nonrecurring Basis [Member] | Mortgage Servicing Rights [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	$ 2,642	$ 2,246

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Fair Value Measurement - Quantitative Information about Level 3 Fair Value Measurements (Detail) - Assets Measured at Fair Value on a Nonrecurring Basis [Member] - (Level 3) [Member] $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Impaired Loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value	$ 11	$ 1
Impaired Loans [Member] | Measurement Input, Appraised Value [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Unobservable Input	10
Impaired Loans [Member] | Measurement Input, Appraised Value [Member] | Minimum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Unobservable Input		0
Impaired Loans [Member] | Measurement Input, Appraised Value [Member] | Maximum [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Unobservable Input		30
Impaired Loans [Member] | Measurement Input, Appraised Value [Member] | Weighted Average [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Unobservable Input	10	19
Impaired Loans [Member] | Measurement Input Holding Period [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired loans, Term	24 months	23 months
Impaired Loans [Member] | Measurement Input Holding Period [Member] | Weighted Average [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Impaired loans, Term	24 months	23 months
Other Real Estate Owned [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value		$ 31
Other Real Estate Owned [Member] | Measurement Input, Appraised Value [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Unobservable Input		10
Other Real Estate Owned [Member] | Measurement Input, Appraised Value [Member] | Weighted Average [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Unobservable Input		10

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Fair Value Measurement - Carrying Amount and Fair Value of Financial Instruments Carried at Amortized Cost (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Financial Assets:
Cash and due from financial institutions	$ 253,459	$ 125,749
Other securities	17,011	20,537
Loans, net of allowance for loan losses	1,971,238	2,032,474
Bank owned life insurance	46,641	45,976
Accrued interest receivable	7,385	9,421
Financial Liabilities:
Time deposits	246,448
Long-term FHLB advances	75,000	125,000
Securities sold under agreement to repurchase	25,495	28,914	$ 18,674
Carrying Amount [Member]
Financial Assets:
Cash and due from financial institutions	265,969	139,522
Other securities	17,011	20,537
Loans, held for sale	1,972	7,001
Loans, net of allowance for loan losses	1,971,238	2,032,474
Bank owned life insurance	47,176	46,976
Accrued interest receivable	7,385	9,421
Financial Liabilities:
Nonmaturing deposits	2,170,253	1,902,560
Time deposits	246,448	286,838
Long-term FHLB advances	75,000	125,000
Securities sold under agreement to repurchase	25,495	28,914
Subordinated debentures	102,813	29,427
Accrued interest payable	315	204
Total Fair Value [Member]
Financial Assets:
Cash and due from financial institutions	265,969	139,522
Other securities	17,011	20,537
Loans, held for sale	2,011	7,141
Loans, net of allowance for loan losses	1,945,638	2,063,249
Bank owned life insurance	47,176	45,976
Accrued interest receivable	7,385	9,421
Financial Liabilities:
Nonmaturing deposits	2,170,253	1,902,560
Time deposits	247,053	288,298
Long-term FHLB advances	75,930	130,942
Securities sold under agreement to repurchase	25,495	28,914
Subordinated debentures	111,118	31,479
Accrued interest payable	315	204
(Level 1) [Member]
Financial Assets:
Cash and due from financial institutions	265,969	139,522
Other securities	17,011	20,537
Loans, held for sale	2,011	7,141
Bank owned life insurance	47,176	45,976
Accrued interest receivable	7,385	9,421
Financial Liabilities:
Nonmaturing deposits	2,170,253	1,902,560
Securities sold under agreement to repurchase	25,495	28,914
Accrued interest payable	315	204
(Level 3) [Member]
Financial Assets:
Loans, net of allowance for loan losses	1,945,638	2,063,249
Financial Liabilities:
Time deposits	247,053	288,298
Long-term FHLB advances	75,930	130,942
Subordinated debentures	$ 111,118	$ 31,479

XML

Commitments, Contingencies and Off-Balance-Sheet Risk - Contractual Amounts of Financial Instruments with Off-Balance-Sheet Risk (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fixed Rate	$ 34,164	$ 39,095
Variable Rate	510,542	470,557
Lines of Credit and Construction Loans [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fixed Rate	33,542	38,474
Variable Rate	455,777	427,864
Overdraft Protection [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fixed Rate	7	6
Variable Rate	54,034	41,707
Letters of Credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fixed Rate	615	615
Variable Rate	$ 731	$ 986

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Commitments, Contingencies and Off-Balance-Sheet Risk - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Maximum period of commitments to make loans	1 year
Maximum time period of maturities	30 years
Reserve balance under Federal Reserve Board requirements	$ 0	$ 0
Minimum [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Range of fixed interest rate loan commitments	3.25%	3.50%
Maximum [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Range of fixed interest rate loan commitments	8.00%	8.00%

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Capital Requirements and Restriction on Retained Earnings - Actual Capital Levels and Minimum Required Capital Levels (Detail) $ in Thousands	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Consolidated [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total Risk Based Capital, Actual, Amount	$ 394,164	$ 307,504
Tier I Risk Based Capital, Actual, Amount	295,064	283,459
CET1 Risk Based Capital, Actual, Amount	265,637	254,032
Leverage, Actual, Amount	$ 295,064	$ 283,459
Total Risk Based Capital, Actual, Ratio	19.2	16.0
Tier I Risk Based Capital, Actual, Ratio	14.3	14.7
CET1 Risk Based Capital, Actual, Ratio	12.9	13.2
Leverage, Actual, Ratio	10.2	10.8
Total Risk Based Capital , For Capital Adequacy Purposes, Amount	$ 164,498	$ 153,810
Tier I Risk Based Capital, For Capital Adequacy Purposes, Amount	123,373	115,358
CET1 Risk Based Capital, For Capital Adequacy Purposes, Amount	92,530	86,518
Leverage, For Capital Adequacy Purposes, Amount	$ 115,543	$ 105,279
Total Risk Based Capital , For Capital Adequacy Purposes, Ratio	8.0	8.0
Tier I Risk Based Capital, For Capital Adequacy Purposes, Ratio	6.0	6.0
CET1 Risk Based Capital, For Capital Adequacy Purposes, Ratio	4.50%	4.50%
Leverage, For Capital Adequacy Purposes, Ratio	4.0	4.0
Civista [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total Risk Based Capital, Actual, Amount	$ 338,383	$ 277,429
Tier I Risk Based Capital, Actual, Amount	312,671	252,304
CET1 Risk Based Capital, Actual, Amount	312,671	241,891
Leverage, Actual, Amount	$ 312,671	$ 252,304
Total Risk Based Capital, Actual, Ratio	16.5	14.4
Tier I Risk Based Capital, Actual, Ratio	15.2	13.1
CET1 Risk Based Capital, Actual, Ratio	15.2	12.6
Leverage, Actual, Ratio	10.8	9.6
Total Risk Based Capital , For Capital Adequacy Purposes, Amount	$ 164,483	$ 153,765
Tier I Risk Based Capital, For Capital Adequacy Purposes, Amount	123,362	115,323
CET1 Risk Based Capital, For Capital Adequacy Purposes, Amount	92,522	86,493
Leverage, For Capital Adequacy Purposes, Amount	$ 115,408	$ 105,029
Total Risk Based Capital , For Capital Adequacy Purposes, Ratio	8.0	8.0
Tier I Risk Based Capital, For Capital Adequacy Purposes, Ratio	6.0	6.0
CET1 Risk Based Capital, For Capital Adequacy Purposes, Ratio	4.50%	4.50%
Leverage, For Capital Adequacy Purposes, Ratio	4.0	4.0
Total Risk Based Capital , To Be Well Capitalized Under Prompt Corrective Action Purposes, Amount	$ 205,604	$ 192,206
Tier I Risk Based Capital, To Be Well Capitalized Under Prompt Corrective Action Purposes, Amount	164,483	153,765
CET1 Risk Based Capital, To Be Well Capitalized Under Prompt Corrective Action Purposes, Amount	133,642	124,934
Leverage, To Be Well Capitalized Under Prompt Corrective Action Purposes, Amount	$ 144,260	$ 131,286
Total Risk Based Capital , To Be Well Capitalized Under Prompt Corrective Action Purposes, Ratio	10.0	10.0
Tier I Risk Based Capital, To Be Well Capitalized Under Prompt Corrective Action Purposes, Ratio	8.0	8.0
CET1 Risk Based Capital, To Be Well Capitalized Under Prompt Corrective Action Purposes, Ratio	6.50%	6.50%
Leverage, To Be Well Capitalized Under Prompt Corrective Action Purposes, Ratio	5.0	5.0

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Capital Requirements and Restriction on Retained Earnings - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2021 USD ($)
Capital Requirements And Restriction On Retained Earnings [Abstract]
Net profits available to pay dividends to CBI	$ 59,772

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Parent Company Only Condensed Financial Information - Schedule of Condensed Balance Sheets (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
ASSETS
Equity securities	$ 1,072	$ 886
Other assets	22,872	20,375
Total assets	3,011,983	2,768,862
LIABILITIES
Subordinated debentures	102,813	29,427
Total liabilities	2,656,771	2,418,754
SHAREHOLDERS' EQUITY
Common stock	277,741	277,039
Accumulated earnings	125,558	93,048
Treasury Stock	(56,907)	(34,598)
Accumulated other comprehensive income	8,820	14,619
Total shareholders' equity	355,212	350,108	$ 330,126	$ 298,898
Total liabilities and shareholders' equity	3,011,983	2,768,862
CBI[Member]
ASSETS
Cash	45,800	19,446	$ 24,089	$ 19,678
Equity securities	1,072	886
Investment in bank subsidiary	408,255	344,948
Investment in nonbank subsidiaries	3,474	16,017
Other assets	2,016	1,575
Total assets	460,617	382,872
LIABILITIES
Deferred income taxes and other liabilities	2,592	3,337
Subordinated debentures	102,813	29,427
Total liabilities	105,405	32,764
SHAREHOLDERS' EQUITY
Common stock	277,741	277,039
Accumulated earnings	125,558	93,048
Treasury Stock	(56,907)	(34,598)
Accumulated other comprehensive income	8,820	14,619
Total shareholders' equity	355,212	350,108
Total liabilities and shareholders' equity	$ 460,617	$ 382,872

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Parent Company Only Condensed Financial Information - Schedule of Condensed Statements of Operations (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Condensed Financial Statements Captions [Line Items]
Interest expense	$ (6,317)	$ (10,138)	$ (12,954)
Income tax benefit	(7,017)	(4,940)	(5,683)
Net income	40,546	32,192	33,878
Comprehensive income	34,747	39,937	42,204
CBI[Member]
Condensed Financial Statements Captions [Line Items]
Dividends from bank subsidiaries	19,900	15,300	13,300
Dividends from non-bank subsidiaries	1,000	440
Interest expense	(956)	(945)	(1,423)
Pension expense	(47)	(25)	176
Other expense, net	(1,004)	(1,241)	(1,107)
Income (loss) before equity in undistributed net earnings of subsidiaries	18,893	13,529	10,946
Income tax benefit	425	475	494
Equity in undistributed net earnings of subsidiaries	21,228	18,188	22,438
Net income	40,546	32,192	33,878
Comprehensive income	$ 34,747	$ 39,937	$ 42,204

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Parent Company Only Condensed Financial Information - Schedule of Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Operating activities:
Net income	$ (40,546)	$ (32,192)	$ (33,878)
Adjustment to reconcile net income to net cash from operating activities:
Net cash from operating activities	40,761	32,654	38,801
Cash flows used for investing activities:
Net cash used for investing activities	(130,496)	(340,982)	(150,764)
Cash flows from financing activities:
Payment to repurchase series B preferred stock			(402)
Net cash from financing activities	216,925	398,802	116,739
CBI[Member]
Operating activities:
Net income	40,546	32,192	33,878
Adjustment to reconcile net income to net cash from operating activities:
Change in other assets and other liabilities	2,495	1,925	4,437
Equity in undistributed net earnings of subsidiaries	(21,228)	(18,188)	(22,438)
Net cash from operating activities	21,813	15,929	15,877
Cash flows used for investing activities:
Disposal of minority interest	11,500
Disposal of investment in subsidiary	0		41
Acquisition, net of cash acquired	(50,000)
Net cash used for investing activities	(38,500)		41
Cash flows from financing activities:
Cash paid on fractional shares on preferred stock conversion to common stock			(2)
Proceeds from subordinated debenture, net of issuance costs	73,386
Purchase of treasury stock	(22,309)	(13,454)	(3,909)
Payment to repurchase series B preferred stock			(402)
Cash dividends paid	(8,036)	(7,118)	(7,194)
Net cash from financing activities	43,041	(20,572)	(11,507)
Net change in cash and cash equivalents	26,354	(4,643)	4,411
Cash and cash equivalents at beginning of year	19,446	24,089	19,678
Cash and cash equivalents at end of year	$ 45,800	$ 19,446	$ 24,089

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Preferred Shares - Additional information (Detail) - USD ($) $ / shares in Units, $ in Thousands	Feb. 15, 2014	Dec. 19, 2013
Depositary Shares [Member]
Preferred Stock [Line Items]
Newly issued shares		1,000,000
Percentage of ownership Interest		6.50%
Share issued price per share		$ 25.00
Gross proceeds from public offering		$ 25,000
Series B Preferred Stock [Member]
Preferred Stock [Line Items]
Preferred shares, liquidation preference		$ 1,000
Dividend on preferred stock		6.50%
Series A Preferred Stock [Member]
Preferred Stock [Line Items]
Aggregate purchase price of Preferred stock	$ 22,857
Preferred stock redemption date	Feb. 15, 2014

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Earnings per Common Share - Computation of Basic and Diluted Earnings per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Basic
Net income	$ 40,546	$ 32,192	$ 33,878
Preferred stock dividends	0	0	647
Less allocation of earnings and dividends to participating securities	173	98	87
Net income available to common shareholders—basic	$ 40,373	$ 32,094	$ 33,144
Weighted average common shares outstanding	15,408,863	16,129,875	15,652,881
Less average participating securities	65,648	49,012	40,013
Weighted average common shares outstanding for earnings per common share basic	15,343,215	16,080,863	15,612,868
Basic earnings per share	$ 2.63	$ 2.00	$ 2.12
Diluted
Net income available to common shareholders—diluted	$ 40,373	$ 32,094	$ 33,791
Add: dilutive effects of convertible preferred shares			1,198,859
Average shares and dilutive potential common shares outstanding—diluted	15,343,215	16,080,863	16,851,740
Diluted earnings per share	$ 2.63	$ 2.00	$ 2.01

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Derivatives - Summary of Interest Rate Swap Transactions (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Derivatives Fair Value [Line Items]
Derivative Asset	$ 11,072	$ 21,700
Accrued Liabilities and Other Liabilities	11,072	21,764
Long [Member] | Financial Institutions [Member]
Derivatives Fair Value [Line Items]
Counterparty Positions With Financial Institutions In A Liability Position Notional Amount	173,490	244,748
Fair Value Of Counterparty Positions With Financial Institutions In A Liability Position	11,072	21,764
Short [Member] | Financial Institutions [Member]
Derivatives Fair Value [Line Items]
Counterparty Positions With Financial Institutions In An Asset Position Notional Amount	71,328
Fair Value Of Counterparty Positions With Financial Institutions In An Asset Position	(1,628)
Interest Rate Swap [Member] | Long [Member]
Derivatives Fair Value [Line Items]
Interest Rate Swaps With Loan Customers In An Asset Position Notional Amount	173,490	244,748
Fair Value Of Interest Rate Swaps With Loan Customers In An Asset Position	11,072	$ 21,700
Interest Rate Swap [Member] | Short [Member]
Derivatives Fair Value [Line Items]
Interest Rate Swaps With Loan Customers In A Liability Position Notional Amount	71,328
Fair Value Of Interest Rate Swaps With Loan Customers In A Liability Position	$ 1,628

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Derivatives - Summary Of Gross Notional Amount Derivatives (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Customers [Member]
Derivative, Notional Amount	$ 244,818	$ 244,748
Financial Institutions [Member]
Derivative, Notional Amount	$ 244,818	$ 244,748

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Derivatives - Summary of Gain or loss On Derivatives (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Derivative, Gain (Loss) on Derivative, Net	$ 64	$ (64)	$ 0
Other Income [Member] | Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member]
Derivative, Gain (Loss) on Derivative, Net	$ 64	$ (64)	$ 0

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Derivatives - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Derivatives Fair Value [Line Items]
Swap fees	$ 207	$ 1,459	$ 516
Collateral Pledged [Member] | Interest Rate Swap [Member]
Derivatives Fair Value [Line Items]
Cash and securities at fair value pledged for collateral	509	11,705
Cash and Cash Equivalents [Member] | Interest Rate Swap [Member]
Derivatives Fair Value [Line Items]
Cash and securities at fair value pledged for collateral	$ 10,780	$ 11,300

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Qualified Affordable Housing Project Investments - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Investments in Affordable Housing Projects [Abstract]
Investments in qualified affordable housing projects included in other assets	$ 13,093	$ 11,911
Unfunded commitments related to the investments in qualified affordable housing projects	5,706	5,944
Recognized amortization expense	818	661	$ 570
Recognized tax credits and other benefits from its investments in affordable housing tax credits	1,402	1,186	995
Impairment losses related to its investment in qualified affordable housing projects	$ 0	$ 0	$ 0

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Revenue Recognition - Summary of Noninterest Income Segregated By Revenue Streams In-scope and Out-of-scope of Topic 606 (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Noninterest income
Service charges	$ 5,905	$ 5,288	$ 6,395
ATM/Interchange fees	5,443	4,472	4,056
Wealth management fees	4,857	3,981	3,670
Tax refund processing fees	2,375	2,375	2,750
Other	1,055	831	911
Noninterest Income (in-scope of Topic 606)	19,635	16,947	17,782
Noninterest Income (out-of-scope of Topic 606)	11,817	11,235	4,661
Total Noninterest Income	$ 31,452	$ 28,182	$ 22,443

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Leases - Summary of Balance Sheet Information Related to Operating Leases (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Assets:
Operating lease	$ 2,314	$ 2,678
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other assets	Other assets
Liabilities:
Operating lease	$ 2,314	$ 2,678
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Operating lease	Operating lease

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Leases - Summary of Cost Components of Operating Leases (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Lease cost
Operating lease cost	$ 427	$ 499
Short-term lease cost	161	304
Sublease income	(29)	(26)
Total lease cost	$ 559	$ 777

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Leases - Summary of Maturities of Operating and Finance Lease Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
2022	$ 420
2023	414
2024	406
2025	308
2026	258
Thereafter	728
Total lease payments	2,534
Less: Imputed Interest	220
Present value of lease liabilities	$ 2,314	$ 2,678

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Leases - Summary of Weighted Average Remaining Lease Terms And Discount Rates For Operating Leases (Detail)	Dec. 31, 2021
Leases [Abstract]
Weighted-average remaining lease term - operating leases (years)	5 years 7 months 6 days
Weighted-average discount rate - operating leases	2.82%

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Subsequent Events - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2021 USD ($)	Jan. 07, 2022 USD ($) $ / shares	Sep. 30, 2021 USD ($)	Dec. 31, 2020 USD ($)
Subsequent Event [Line Items]
Assets	$ 3,011,983,000			$ 2,768,862,000
Deposits	$ 2,416,701,000			$ 2,189,398,000
Comunibanc And The Henry County Bank [Member]
Subsequent Event [Line Items]
Assets			$ 329,000,000
loans			165,000,000
Deposits			$ 276,000,000
CBI Common Shares [Member]
Subsequent Event [Line Items]
Stockholders' equity note, stock split, conversion ratio	1.1888
Amount of cash received in conversion of shares	$ 30,130
Subsequent Event [Member]
Subsequent Event [Line Items]
Common stock, value, outstanding		$ 50,200,000
Shares issued, price per share | $ / shares		$ 60.59
Common stock, par or stated value per share | $ / shares		$ 25.62