Investor Presentation Second Quarter 2023 Dennis G. Shaffer - Chief Executive Officer & President Richard J. Dutton - Senior Vice President, Chief Operating Officer NASDAQ: CIVB Exhibit 99.1
Forward-Looking Statements. This presentation may contain “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements express management’s current expectations, estimates or projections of future events, results or long-term goals, and are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should” or other similar expressions. All statements in this material speak only as of the date they are made, and we undertake no obligation to update any statement except to the extent required by law. 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 actual results or performance to differ materially from those expressed in or implied by the forward-looking statements. Factors that could cause actual results or performance to differ from those discussed in the forward-looking statements include the risks identified from time to time in our public filings with the SEC, including those risks identified in “Item 1A. Risk Factors” of Part I of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022, as supplemented by any additional risks identified in the Company’s subsequent Form 10-Qs. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Use of Non-GAAP Financial Measures. This presentation contains certain financial information determined by methods other than in accordance with accounting principals generally accepted in the United States (“GAAP”). These non-GAAP financial measures include “Tangible Book Value per Share” , “Tangible Common Equity to Tangible Assets” and “Efficiency Ratio”. The Company believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s profitability. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP Measures. Not all companies use the same calculation of these measures; therefore this presentation may not be comparable to other similarly titled measures as presented by other companies. Reconciliations of these non-GAAP measures are provided in the Appendix section of this presentation. Sources of Information: Company Management and S&P Global Market Intelligence
Contact Information Civista Bancshares, Inc.’s common shares are traded on the NASDAQ Capital Market under the symbol “CIVB.” Additional information can be found at: www.civb.com Dennis G Shaffer Chief Executive Officer & President dgshaffer@civista.bank Telephone: 888.645.4121
Who We Are 4
Who We Are Bank founded and headquartered in 1884 in Sandusky, Ohio 10th Largest Publicly Traded Commercial Bank Headquartered in Ohio 508 Employees Community Banking Focused Operations in 14 Ohio, 2 Indiana and 1 Kentucky Counties 41 Branches & 2 Loan Production Offices Operations in the 5 largest Ohio MSAs Vison Financial Group (VFG) is a nationally recognized equipment leasing and finance company with equipment leased in all 50 states Full-Service Banking Organization with Diversified Revenue Streams Commercial Banking Retail Banking Wealth Management Mortgage Banking Tax Refund Processing Equipment Leasing
Who We Are Deposit market share information as of June 30, 2022. Sandusky/Norwalk/Port Clinton, Ohio 9 Locations $439 million in loans $1,390 million in deposits #1 deposit market share in Sandusky, Ohio with ~53% Cleveland/Akron, Ohio 3 Locations $819 million in loans $151 million in deposits North Central, Ohio 6 Locations $42 million in loans $218 million in deposits ~39% deposit market share Columbus & West Central, Ohio 6 Locations $479 million in loans $254 million in deposits 27% deposit market share in the rural markets Greater Dayton, Ohio 3 Locations $123 million in loans $143 million in deposits Southeastern Indiana/Cincinnati, Ohio 9 Locations $480 million in loans $592 million in deposits ~44% deposit market share Northwest Ohio 7 Locations $162 million in loans $192 million in deposits 17% deposit market share Vision Financial Group $47 million in financing leases $45 million in commercial loans $47 million in operating leases
Who We Are Community bank franchise in growth markets with an established operating model Gather attractive low-cost deposits (107 bps total cost of deposits) Generate loans organically in select growing markets (operations in the 5 largest MSAs in Ohio) Strong capital position Disciplined underwriting verified with strong credit quality metrics Nonaccrual and 90 days Past Due to Gross Loans of 0.41% as of 6/30/2023 Experienced management team with a deep bench Average banking experience of 31 years Noninterest income enhanced by multiple revenue streams Use of LPOs to extend our reach (Westlake, OH and Fort Mitchell, KY) Member Russell 2000 index
Who We Are
Who We Are
Current Events 10
Deposits 13.2%* or $390.7 million of deposits uninsured at June 30, 2023 Cash and unpledged securities of $415.5 million at June 30, 2023 Deposits, excluding tax program and brokered deposits, declined 2.3% from December 31, 2022 to June 30, 2023 Excluding $378.2 million of public deposits, Civista had no deposit concentrations at June 30, 2023 “Civista’s deposit franchise is one of our most valuable characteristics and contributes significantly to our peer leading net interest margin and profitability” *Excluding Civista owned and tax program related deposit accounts
Liquidity Strong on-balance sheet liquidity $415.5 million of cash and unpledged securities at June 30, 2023 Ready access to off-balance sheet funding Immediate access to $1.3 billion in funding from FHLB, Federal Reserve and CDARS/IntraFi Civista has not and does not anticipate using the Federal Reserve’s Bank Term Funding program
Credit Adopted CECL January 1, 2023 $4.3 million increase in Allowance for Credit Losses $3.4 million increase in Reserve for Unfunded Commitments Credit metrics remain stable and strong ACL to nonperforming loans was 327.05% at June 30, 2023 ACL to loans was 1.33% at June 30, 2023
Capital Civista continues to create capital through earnings “Well Capitalized” by regulatory standards Tangible Common Equity ratio was 6.16% at June 30, 2023
Financial Trends 15
Financial Trends June 30, 2023 includes $403 thousand of PPP loans; June 30, 2022 includes $3.6 million of PPP loans Presented on an annualized basis 3. Non-GAAP reconciliation on page 37
Financial Trends Total Assets1 ($ in millions) 1. 2018 includes the addition of $578 million in assets due to United Community Bancorp acquisition. 2022 includes the addition of $316 million in assets due to Comunibanc Corp acquisition. CAGR 12.4%
Financial Trends Total Gross Loans1 ($ in millions) 1. 2018 includes the addition of $299 million in loans due to United Community Bancorp acquisition. 2020 includes $217.3 million of PPP loans. 2021 includes $43.2 million of PPP loans. 2022 includes $819 thousand of PPP loans as well as $169 million due to the Comunibanc Corp acquisition. CAGR 12.3%
Financial Trends Total Gross Loans: $2.6 billion Loan Mix ($ in millions)
Financial Trends VFG Lease and Equipment Financing ($ in millions) 2023 YTD Production YTD Funded: $64.1 million Sold: $22.0 million Net Production: $42.1 million Average Yield on Total Portfolio: 7.70% Average Yield on Q2 Originations: 8.76%
1. LTM basis Financial Trends Reserves / NPLs NCOs / Average Loans 1 Loan Loss Reserves / Gross Loans NPAs & 90+PD / Assets Loan Loss Reserves / Gross Loans Nonaccrual & 90 days Past Due / Gross Loans
Financial Trends Total Deposits1 ($ in millions) 1. 2018 includes the addition of $476 million in deposits due to United Community Bancorp acquisition. 2022 includes the addition of $271 million in deposits due to the Comunibanc Corp acquisition. CAGR 14.8%
Financial Trends Total Deposits: $2.9 billion Loan/Deposit Ratio: 89.6% Deposit Mix
2023 Peer data as of 6/30/2023 or the latest available date. Note: Comparable peers include public banks $1-$4B in Ohio and +/- 40% CIVB’s asset size in contiguous states. Total Cost of Deposits (%) Yield on Loans (%) Financial Trends
Financial Trends 2023 peer data as of 6/30/2023, or the latest available date. Note: Comparable peers include public banks $1-$4B in Ohio and +/- 40% CIVB’s asset size in contiguous states. Net Interest Margin
Financial Trends 1. 2018 efficiency ratio is adjusted for merger related expenses; 2021 efficiency ratio is adjusted for nonrecurring items; 2022 efficiency ratio is adjusted for merger related expenses. Page 38,39 and 40 show Non-GAAP reconciliations Fee income platform Service charges on deposit accounts were $3.6 million YTD 2023 and $3.1 million YTD 2022 Mortgage Banking Gain on sale of loans, primarily mortgage loans, YTD 2023 and 2022 was $1.2 million and $1.5 million, respectively Wealth Management $2.4 million YTD 2023 and $2.5 million YTD 2022 Tax Refund Processing Platform $2.4 million YTD 2023 and 2022 Interchange Income $2.6 million YTD 2023 and $2.4 million YTD 2022 Disciplined approach to controlling non-interest expense Continued focus on review of branch network Identified efficiencies invested to enhance digital offerings Elimination of five mortgage operations positions post Q1, anticipate $470 thousand in 2023 savings Renegotiation of Mastercard debit contract One-time incentive payment of $1.5 million Increased “per transaction” fees Non-Interest Income and Expense Non-Interest Expense and Efficiency Ratio1
Financial Trends 1. TCE Non-GAAP reconciliation on page 37 2. LTM basis 3. Page 41 shows 2018 ratios adjusted for merger related expenses Raised $32.8 million of capital (issued 1,610,000 shares) in February 2017 Additional $104.7 million of capital (issued 4,277,430 shares) related to UCB merger in September 2018 Redeemed outstanding preferred shares effective December 20, 2019 November 2021 issued $75 million in 3.25% subordinated debt Authorized $13.5 million stock repurchase plan in May 2022 During 2022, 742,015 shares, 5.0% of the shares outstanding on December 31, 2021, have been repurchased for $16.8 million at a weighted average price of $22.58 (179% of TBV) Increased the quarterly common dividend to $0.15 per share in the second quarter 2023 and to $0.16 per share in the third quarter 2023. Capital Management
Providing Shareholder Value 28
1. Q2 2023 presented on LTM basis 2. Page 41 shows 2018 ratios adjusted for merger related expenses Providing Shareholder Value Net Income & Earnings Per Share (Available to Common) (LTM - $ in thousands)
1. LTM basis 2. Non-GAAP reconciliation on page 37 3. The change in the AOCI impact of unrealized losses on the investment portfolio from 12/31/21 to 12/31/22 was $67.4 million and to 3/31/23 was $65.2 million Providing Shareholder Value Total Shareholders’ Equity & Return on Tangible Equity1,2,3 ($ in thousands)
Providing Shareholder Value 1. Non-GAAP reconciliation on page 37 2. The change in the AOCI impact of unrealized losses on the investment portfolio on TBV/share from 12/31/21 to 12/31/22 was $4.29 and to 3/31/23 was $4.13 Tangible Book Value per Share1,2
Why Civista? 32
Why Civista? Completed 6 acquisitions since 2007, including the acquisition of Comunibanc Corp, which closed July 1, 2022 and acquisition of Vision Financial Group, which closed October 3, 2022 On June 27, 2022, opened de novo branch in Gahanna, Ohio, located in Franklin County (Columbus MSA) Experienced Acquirer & Organic Growth Model Expanded commercial loan growth in Columbus, Cleveland, Akron, Dayton and Cincinnati markets Since year-end 2018, loan portfolios in these markets have increased from $645 million to $1.3 billion through June 30, 2023 Low cost, locally generated deposit base
Why Civista? Community bank franchise poised for acquisitions and strong core deposit franchise Strong capital position Strong credit culture and asset quality Experienced acquirer Continued strong NIM Experienced management team with an average of 31 years in banking Strategically positioned in attractive Ohio lending markets funded by low-cost deposits with operations in the 5 largest Ohio MSAs Demonstrated strong profitability from 2018 to Q2 2023 Net Income CAGR: 32.1% TBV / Share CAGR: 0.9% EPS CAGR: 26.6% Compelling Investment Opportunity
Additional Information 35
Operating Results
Non-GAAP Reconciliation 1. LTM basis
Non-GAAP Reconciliation
Non-GAAP Reconciliation
Non-GAAP Reconciliation
Non-GAAP Reconciliation
Thank You