10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended: June 30, 2018

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	(I.R.S. Employer
incorporation or organization)	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

N/A

(Former name, former address and former fiscal year, if changed since last report)

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 and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post 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. (check one):

Large accelerated filer	☐		Accelerated filer	☒
Non-accelerated filer	☐	(Do not check if a smaller reporting company)	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 is a shell company (as defined in Rule 12b-2 of the Act).    Yes  ☐    No  ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. Common Shares, no par value, outstanding at August 3, 2018—10,791,129 shares

CIVISTA BANCSHARES, INC.

Index

PART I.	Financial Information
Item 1.	Financial Statements:
	Consolidated Balance Sheets (Unaudited) June 30, 2018 and December 31, 2017	2
	Consolidated Statements of Operations (Unaudited) Three and six months ended June 30, 2018 and 2017	3
	Consolidated Statements of Comprehensive Income (Unaudited) Three and six months ended June 30, 2018 and 2017	4
	Condensed Consolidated Statement of Changes in Shareholders’ Equity (Unaudited) Six months ended June 30, 2018	5
	Condensed Consolidated Statements of Cash Flows (Unaudited) Six months ended June 30, 2018 and 2017	6
	Notes to Interim Consolidated Financial Statements (Unaudited)	7-35
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	36-46
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	47-48
Item 4.	Controls and Procedures	49
PART II.	Other Information
Item 1.	Legal Proceedings	50
Item 1A.	Risk Factors	50
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	50
Item 3.	Defaults upon Senior Securities	50
Item 4.	Mine Safety Disclosures	50
Item 5.	Other Information	50
Item 6.	Exhibits	51
Signatures		52

Part I – Financial Information

ITEM 1. Financial Statements

CIVISTA BANCSHARES, INC.

Consolidated Balance Sheets (Unaudited)

(In thousands, except share data)

	June 30, 2018			December 31, 2017
ASSETS
Cash and due from financial institutions	$	41,156		$	40,519
Securities available for sale		231,013			230,230
Equity securities		907			832
Loans held for sale		4,058			2,197
Loans, net of allowance of $12,867 and $13,134		1,167,165			1,151,527
Other securities		14,247			14,247
Premises and equipment, net		17,308			17,611
Accrued interest receivable		4,489			4,488
Goodwill		27,095			27,095
Other intangible assets		1,247			1,279
Bank owned life insurance		25,411			25,125
Other assets		14,358			10,707
Total assets	$	1,548,454		$	1,525,857
LIABILITIES
Deposits
Noninterest-bearing	$	391,785		$	361,964
Interest-bearing		754,387			842,959
Total deposits		1,146,172			1,204,923
Federal Home Loan Bank advances		156,200			71,900
Securities sold under agreements to repurchase		14,230			21,755
Subordinated debentures		29,427			29,427
Accrued expenses and other liabilities		12,577			13,391
Total liabilities		1,358,606			1,341,396
SHAREHOLDERS’ EQUITY
Preferred shares, no par value, 200,000 shares authorized, Series B Preferred shares,    $1,000 liquidation preference, 14,320 shares issued at June 30, 2018 and 18,760 shares    issued at December 31, 2017, net of issuance costs		13,250			17,358
Common shares, no par value, 20,000,000 shares authorized, 11,536,856 shares issued at    June 30, 2018 and 10,946,439 shares issued at December 31, 2017		158,191			153,810
Retained earnings		39,898			31,652
Treasury shares, 747,964 common shares at cost		(17,235	)		(17,235	)
Accumulated other comprehensive loss		(4,256	)		(1,124	)
Total shareholders’ equity		189,848			184,461
Total liabilities and shareholders’ equity	$	1,548,454		$	1,525,857

See notes to interim unaudited consolidated financial statements

Page 2

CIVISTA BANCSHARES, INC.

Consolidated Statements of Operations (Unaudited)

(In thousands, except per share data)

	Three months ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Interest and dividend income
Loans, including fees	$	14,144	$	12,412	$	27,783	$	24,189
Taxable securities		1,040		940		2,026		1,787
Tax-exempt securities		886		784		1,764		1,496
Federal funds sold and other		90		92		511		448
Total interest and dividend income		16,160		14,228		32,084		27,920
Interest expense
Deposits		570		428		1,277		892
Federal Home Loan Bank advances		482		170		634		258
Subordinated debentures		338		258		626		499
Securities sold under agreements to repurchase and other		4		5		9		10
Total interest expense		1,394		861		2,546		1,659
Net interest income		14,766		13,367		29,538		26,261
Provision for loan losses		—		—		—		-
Net interest income after provision for loan losses		14,766		13,367		29,538		26,261
Noninterest income
Service charges		1,359		1,387		2,493		2,432
Net gain on sale of securities		6		—		6		—
Net gain on equity securities		35		—		75		—
Net gain on sale of loans		474		478		807		735
ATM/Interchange fees		588		567		1,142		1,076
Wealth management fees		836		738		1,688		1,445
Bank owned life insurance		144		143		286		287
Tax refund processing fees		550		550		2,750		2,750
Other		398		238		759		512
Total noninterest income		4,390		4,101		10,006		9,237
Noninterest expense
Compensation expense		7,385		6,943		14,759		13,925
Net occupancy expense		862		655		1,623		1,312
Equipment expense		324		418		698		747
Contracted data processing		2,739		429		3,087		818
FDIC assessment		116		133		267		298
State franchise tax		363		255		681		512
Professional services		1,483		733		2,035		1,184
Amortization of intangible assets		26		158		59		325
ATM expense		208		214		426		468
Marketing		320		276		638		528
Other operating expenses		2,102		2,335		3,860		3,934
Total noninterest expense		15,928		12,549		28,133		24,051
Income before taxes		3,228		4,919		11,411		11,447
Income tax expense		214		1,323		1,408		3,216
Net Income		3,014		3,596		10,003		8,231
Preferred stock dividends		299		308		602		627
Net income available to common shareholders	$	2,715	$	3,288	$	9,401	$	7,604
Earnings per common share, basic	$	0.26	$	0.32	$	0.91	$	0.79
Earnings per common share, diluted	$	0.24	$	0.29	$	0.79	$	0.68

See notes to interim unaudited consolidated financial statements

Page 3

CIVISTA BANCSHARES, INC.

Consolidated Statements of Comprehensive Income (Unaudited)

(In thousands)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2018			2017			2018			2017
Net income	$	3,014		$	3,596		$	10,003		$	8,231
Other comprehensive income (loss):
Unrealized holding gains (losses) on available for sale securities		(684	)		1,454			(3,898	)		1,905
Tax effect		143			(495	)		818			(647	)
Pension liability adjustment		143			426			286			520
Tax effect		(30	)		(145	)		(60	)		(177	)
Total other comprehensive income (loss)		(428	)		1,240			(2,854	)		1,601
Comprehensive income	$	2,586		$	4,836		$	7,149		$	9,832

See notes to interim unaudited consolidated financial statements

Page 4

CIVISTA BANCSHARES, INC.

Condensed Consolidated Statement of Changes in Shareholders’ Equity (Unaudited)

(In thousands, except share data)

	Preferred Shares						Common Shares										Accumulated Other			Total
	Outstanding Shares			Amount			Outstanding Shares		Amount		Retained Earnings			Treasury Shares			Comprehensive Loss			Shareholders’ Equity
Balance, December 31, 2017		18,760		$	17,358			10,198,475	$	153,810	$	31,652		$	(17,235	)	$	(1,124	)	$	184,461
Change in accounting principle for adoption    of ASU 2016-01		—			—			—		—		278			—			(278	)		—
Net Income		—			—			—		—		10,003			—			—			10,003
Other comprehensive loss		—			—			—		—		—			—			(2,854	)		(2,854	)
Conversion of Series B preferred shares to    common shares		(4,440	)		(4,108	)		567,703		4,108		—			—			—			—
Stock-based compensation		—			—			22,714		273		—			—			—			273
Common stock dividends    ($0.14 per share)		—			—			—		—		(1,433	)		—			—			(1,433	)
Preferred stock dividend		—			—			—		—		(602	)		—			—			(602	)
Balance, June 30, 2018		14,320		$	13,250			10,788,892	$	158,191	$	39,898		$	(17,235	)	$	(4,256	)	$	189,848

See notes to interim unaudited consolidated financial statements

Page 5

CIVISTA BANCSHARES, INC.

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In thousands)

	Six Months Ended June 30,
	2018			2017
Net cash from operating activities	$	5,324		$	8,223
Cash flows used for investing activities:
Maturities and calls of securities, available-for-sale		9,332			15,385
Purchases of securities, available-for-sale		(14,606	)		(48,444	)
Purchases of other securities		—			(170	)
Net loan originations		(15,382	)		(45,318	)
Proceeds from sale of other real estate owned properties		34			72
Proceeds from sale of premises and equipment		238			139
Premises and equipment purchases		(292	)		(535	)
Net cash used for investing activities		(20,676	)		(78,871	)
Cash flows from financing activities:
Repayment of long-term FHLB advances		(10,000	)		(2,500	)
Net change in short-term FHLB advances		94,300			17,300
Increase (decrease) in deposits		(58,751	)		43,785
Decrease in securities sold under repurchase agreements		(7,525	)		(16,195	)
Net proceeds from common stock issuance		—			32,821
Common dividends paid		(1,433	)		(1,116	)
Preferred dividends paid		(602	)		(627	)
Net cash provided by financing activities		15,989			73,468
Increase in cash and due from financial institutions		637			2,820
Cash and due from financial institutions at beginning of period		40,519			36,695
Cash and due from financial institutions at end of period	$	41,156		$	39,515
Cash paid during the period for:
Interest	$	2,854		$	1,740
Income taxes		1,500			2,600
Supplemental cash flow information:
Transfer of loans from portfolio to other real estate owned		—			78
Transfer of premises to held-for-sale		—			3
Transfer of loans held for sale to portfolio		85			419
Conversion of preferred shares to common shares		4,108			1,382
Securities purchased not settled		855			1,073

See notes to interim unaudited consolidated financial statements

Page 6

Civista Bancshares, Inc.

Notes to Interim Consolidated Financial Statements (Unaudited)

Form 10-Q

(Amounts in thousands, except share data)

(1) Consolidated Financial Statements

Nature of Operations and Principles of Consolidation: Civista Bancshares, Inc. (CBI) is an Ohio corporation and a registered financial holding company. The Consolidated Financial Statements include the accounts of CBI and its wholly-owned subsidiaries: Civista Bank (Civista), First Citizens Insurance Agency, Inc. (FCIA), Water Street Properties, Inc. (Water St.), FC Refund Solutions, Inc. (FCRS) and CIVB Risk Management, Inc. (CRMI). FCRS was formed to facilitate payment of individual state and federal income tax refunds. CRMI is a wholly-owned captive insurance company which allows the Company to insure against certain risks unique to its operations and its subsidiaries. The operations of CRMI are located in Wilmington, Delaware. First Citizens Capital LLC (FCC) is wholly-owned by Civista and holds inter-company debt. The operations of FCC are located in Wilmington, Delaware. 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. 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 through June 30, 2018. Water Street Properties was formed to hold properties repossessed by CBI subsidiaries.  Revenue from Water St. was less than 1.0% of total revenue through June 30, 2018. The above companies together are referred to as the “Company.” Intercompany balances and transactions are eliminated in consolidation.Management considers the Company to operate primarily in one reportable segment, banking.

The Consolidated Financial Statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the Company’s financial position as of June 30, 2018 and its results of operations and changes in cash flows for the periods ended June 30, 2018 and 2017 have been made. The accompanying Consolidated Financial Statements have been prepared in accordance with instructions of Form 10-Q, and therefore certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America have been omitted. The results of operations for the period ended June 30, 2018 are not necessarily indicative of the operating results for the full year. Reference is made to the accounting policies of the Company described in the notes to the audited financial statements contained in the Company’s 2017 annual report. The Company has consistently followed these policies in preparing this Form 10-Q.

The Company provides financial services through its offices in the Ohio counties of Erie, Crawford, Champaign, Franklin, Logan, Madison, Summit, Huron, Ottawa, Richland, Montgomery and Cuyahoga. 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. Civista has two concentrations, one is to Lessors of Non-Residential Buildings and Dwellings totaling $301,003, or 25.4% of total loans, as of June 30, 2018 and the other is to Lessors of Residential Buildings and Dwellings totaling $147,497, or 12.5% of total loans, as of June 30, 2018. These segments of the portfolio are stable and have been conservatively underwritten, monitored and managed by experienced commercial bankers. However, the customers’ ability to repay their loans is dependent on the real estate market and general economic conditions in the area. Other financial instruments that potentially represent concentrations of credit risk include Federal Funds sold and deposit accounts in other financial institutions that are in excess of federally insured limits.

(2) Significant 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.  

Page 7

Civista Bancshares, Inc.

Notes to Interim Consolidated Financial Statements (Unaudited)

Form 10-Q

(Amounts in thousands, except share data)

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 financial statements and the disclosures provided, and future results could differ. The allowance for loan losses, impairment of goodwill, fair values of financial instruments, deferred taxes and pension obligations are particularly subject to change.

Income Taxes: Income tax expense is based on the effective tax rate expected to be applicable for the entire year. 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.

Business Combinations: At the date of acquisition the Company records the assets and liabilities of acquired companies on the Consolidated Balance Sheet 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.

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.

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. The Company is party to master netting arrangements with its financial institution counterparties; however, the Company does not offset assets and liabilities under these arrangements for financial statement presentation purposes because the Company does not currently intend to execute a setoff with its 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, usually in the form of marketable securities, is posted by the counterparty with net liability positions in accordance with contract thresholds.

Change in Accounting Principal:

In January 2016, the FASB issued Accounting Standards Update (ASU) 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. This accounting standard (a) requires separate presentation of equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) on the balance sheet and measured at fair value with changes in fair value recognized in net income; (b) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (c) eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; (d) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (e) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (f) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (g) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets.

The Company adopted ASU 2016-01 during the reporting period.The adoption resulted in the Company recognizing a one-time cumulative effect adjustment of $278 on January 1, 2018 between accumulated other comprehensive loss and retained earnings on the consolidated balance sheet for the fair value of the equity securities included in accumulated other comprehensive loss as of the beginning of the period.  The adjustment had no impact on net income for any prior periods presented.

Page 8

Civista Bancshares, Inc.

Notes to Interim Consolidated Financial Statements (Unaudited)

Form 10-Q

(Amounts in thousands, except share data)

On a prospective basis, the Company implemented changes to the measurement of the fair value of financial instruments using an exit price notion for disclosure purposes in Note 13 to the financial statements.  The December 31, 2017, fair value of each class of financial instruments disclosure did not utilize the exit price notion when measuring fair value and, therefore, would not be comparable to the June 30, 2018 disclosure.  The Company estimated the fair value based on guidance from ASC 820-10, Fair Value Measurements, which defines fair value as the price which would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  There is no active observable market for sale information on community bank loans and, thus, Level 3 fair value procedures were utilized, primarily in the use of present value techniques incorporating assumptions that market participants would use in estimating fair values.  The fair value of loans held for investment, excluding impaired loans measured at fair value on a non-recurring basis, is estimated using discounted cash flow analyses.  The discount rates used to determine fair value use interest rate spreads that reflect factors such as liquidity, credit and nonperformance risk of the loans.  Loans are considered a Level 3 classification.

In March 2017, the FASB issued ASU No. 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” Under the new guidance, employers are required to present the service cost component of the net periodic benefit cost in the same income statement line item (e.g., Salaries and Benefits) as other employee compensation costs arising from services rendered during the period. In addition, only the service cost component will be eligible for capitalization in assets. Employers will present the other components of net periodic benefit cost separately (e.g., Other Noninterest Expense) from the line item that includes the service cost. ASU No. 2017-07 is effective for interim and annual reporting periods beginning after December 15, 2017. Employers will apply the guidance on the presentation of the components of net periodic benefit cost in the income statement retrospectively. The guidance limiting the capitalization of net periodic benefit cost in assets to the service cost component will be applied prospectively. The Company adopted ASU No. 2017-07 on January 1, 2018 and has retrospectively applied the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the consolidated statement of income statement of operations. Adoption of ASU No. 2017-07 did not have a material impact on the Company’s Consolidated Financial Statements.

Effect of Newly Issued but Not Yet Effective Accounting Standards:

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The standard in this Update requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. A short-term lease is defined as one in which: (a) the lease term is 12 months or less, and (b) there is not an option to purchase the underlying asset that the lessee is reasonably certain to exercise. For short-term leases, lessees may elect to recognize lease payments over the lease term on a straight-line basis. For public business entities, such as the Company, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within those years. The amendments should be applied at the beginning of the earliest period presented using a modified retrospective approach with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is currently assessing the practical expedients it may elect at adoption, but does not anticipate the amendments will have a significant impact to the financial statements. Based on the Company’s preliminary analysis of its current portfolio, the impact to the Company’s balance sheet is estimated to result in less than a 1% increase in assets and liabilities. The Company also anticipates additional disclosures to be provided at adoption.

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. We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the Company’s consolidated financial statements.

Page 9

Civista Bancshares, Inc.

Notes to Interim Consolidated Financial Statements (Unaudited)

Form 10-Q

(Amounts in thousands, except share data)

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 a U.S. Securities and Exchange Commission (“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. 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 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20). The amendments in this Update shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. For public business entities, such as the Company, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity should apply the amendments in this Update on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Additionally, in the period of adoption, an entity should provide disclosures about a change in accounting principle. 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 July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), and Derivative and Hedging (Topic 815). The amendments in Part I of this Update change the classification analysis of certain equity-linked financial instruments (or embedded features) with down-round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down-round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. The amendments also clarify existing disclosure requirements for equity-classified instruments. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down-round feature. For freestanding equity classified financial instruments, the amendments require entities that present earnings per share (“EPS”) in accordance with Topic 260 to recognize the effect of the down-round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. Convertible instruments with embedded conversion options that have down- round features are now subject to the specialized guidance for contingent beneficial conversion features (in Subtopic 470-20, Debt—Debt with Conversion and Other Options ), including related EPS guidance (in Topic 260). The amendments in Part II of this Update recharacterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Accounting Standards Codification, to a scope exception. Those amendments do not have an accounting effect. For public business entities, such as the Company, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The amendments in Part I of this Update should be applied either retrospectively to outstanding financial instruments with a down-round feature by means of a cumulative-effect adjustment to the statement of financial position as of the beginning of the first fiscal year and interim period(s) in which the pending content that links to this paragraph is effective or retrospectively to outstanding financial instruments with a down-round feature for each prior reporting period presented in accordance with the guidance on accounting changes in paragraphs 250-10-45-5 through 45-10. The amendments in Part II of this Update do not require any transition guidance because those amendments do not have an accounting effect. 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 August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 850), the objective of which is to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. In addition, the amendments in this Update make certain targeted improvements to simplify the application and disclosure of the hedge accounting guidance in current general accepted accounting principles.  For public business entities, such as the Company, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early application is permitted in any period after issuance.  For cash flow and net investment hedges existing at the date of adoption, an entity should apply a cumulative-effect adjustment related to eliminating the separate measurement of ineffectiveness to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year that an entity adopts the amendments in this Update. The amended presentation and disclosure guidance is required only prospectively.  The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations.

Page 10

Civista Bancshares, Inc.

Notes to Interim Consolidated Financial Statements (Unaudited)

Form 10-Q

(Amounts in thousands, except share data)

In January 2018, the FASB issued ASU 2018-01, Leases (Topic 842), which provides an optional transition practical expedient to not evaluate under Topic 842 existing or expired land easements that were not previously accounted for as leases under the current lease guidance in Topic 840.  An entity that elects this practical expedient should evaluate new or modified land easements under Topic 842 beginning at the date the entity adopts Topic 842; otherwise, an entity should evaluate all existing or expired land easements in connection with the adoption of the new lease requirements in Topic 842 to assess whether they meet the definition of a lease.  The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in ASU 2016-02.  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 February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10), to clarify certain aspects of the guidance issued in ASU 2016-01.   (1) An entity measuring an equity security using the measurement alternative may change its measurement approach to a fair value method in accordance with Topic 820, Fair Value Measurement, through an irrevocable election that would apply to that security and all identical or similar investments of the same issuer.  Once an entity makes this election, the entity should measure all future purchases of identical or similar investments of the same issuer using a fair value method in accordance with Topic 820.  (2) Adjustments made under the measurement alternative are intended to reflect the fair value of the security as of the date that the observable transaction for a similar security took place.  (3) Remeasuring the entire value of forward contracts and purchased options is required when observable transactions occur on the underlying equity securities.  (4) When the fair value option is elected for a financial liability, the guidance in paragraph 825-10- 45-5 should be applied, regardless of whether the fair value option was elected under either Subtopic 815-15, Derivatives and Hedging—Embedded Derivatives, or 825-10, Financial Instruments—Overall. (5) Financial liabilities for which the fair value option is elected, the amount of change in fair value that relates to the instrument specific credit risk should first be measured in the currency of denomination when presented separately from the total change in fair value of the financial liability. Then, both components of the change in the fair value of the liability should be remeasured into the functional currency of the reporting entity using end-of-period spot rates.  (6) The prospective transition approach for equity securities without a readily determinable fair value in the amendments in Update 2016-01 is meant only for instances in which the measurement alternative is applied. For public business entities, such as the Company, the amendments in this Update are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years beginning after June 15, 2018. Public business entities with fiscal years beginning between December 15, 2017, and June 15, 2018, are not required to adopt these amendments until the interim period beginning after June 15, 2018, and public business entities with fiscal years beginning between June 15, 2018, and December 15, 2018, are not required to adopt these amendments before adopting the amendments in Update 2016-01. All entities may early adopt these amendments for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, as long as they have adopted Update 2016-01. This Update is not expected to have a significant impact on the Company’s financial statements.

In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718), which simplified the accounting for nonemployee share-based payment transactions.  The amendments in this update expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees.  The amendments in this Update improve the following areas of nonemployee share-based payment accounting; (a) the overall measurement objective, (b) the measurement date, (c) awards with performance conditions, (d) classification reassessment of certain equity-classified awards, (e) calculated value (nonpublic entities only), and (f) intrinsic value (nonpublic entities only).  The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. This Update is not expected to have a significant impact on the Company’s financial statements.

ASU 2018-10, Codification Improvements to Topic 842, Leases, represents changes to clarify, correct errors in, or make minor improvements to the Codification. The amendments in this ASU affect the amendments in ASU 2016-02, which are not yet effective, but for which early adoption upon issuance is permitted. For entities that early adopted Topic 842, the amendments are effective upon issuance of this ASU, and the transition requirements are the same as those in Topic 842. For entities that have not adopted Topic 842, the effective date and transition requirements will be the same as the effective date and transition requirements in Topic 842. This Update is not expected to have a significant impact on the Company’s financial statements.

Page 11

Civista Bancshares, Inc.

Notes to Interim Consolidated Financial Statements (Unaudited)

Form 10-Q

(Amounts in thousands, except share data)

(3) Securities

The amortized cost and fair market value of available for sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive loss were as follows:

June 30, 2018	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury securities and obligations of U.S. government    agencies	$	29,624	$	69	$	(294	)	$	29,399
Obligations of states and political subdivisions		116,051		2,298		(701	)		117,648
Mortgage-backed securities in government sponsored entities		85,556		208		(1,798	)		83,966
Total debt securities	$	231,231	$	2,575	$	(2,793	)	$	231,013

December 31, 2017	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury securities and obligations of U.S. government    agencies	$	30,450	$	100	$	(192	)	$	30,358
Obligations of states and political subdivisions		114,002		4,226		(172	)		118,056
Mortgage-backed securities in government sponsored entities		82,098		408		(690	)		81,816
Total debt securities	$	226,550	$	4,734	$	(1,054	)	$	230,230

The amortized cost and fair value of securities at June 30, 2018, by contractual maturity, is shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Securities not due at a single maturity date, primarily mortgage-backed securities and equity securities are shown separately.

Available for sale	Amortized Cost		Fair Value
Due in one year or less	$	13,504	$	13,462
Due after one year through five years		22,556		22,415
Due after five years through ten years		29,983		30,994
Due after ten years		79,632		80,176
Mortgage-backed securities		85,556		83,966
Total securities available for sale	$	231,231	$	231,013

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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Sale proceeds	$	—	$	—	$	—	$	—
Gross realized gains		—		—		—		—
Gross realized losses		—		—		—		—
Gains (losses) from securities called or settled by the issuer		6		—		6		—

Securities were pledged to secure public deposits, other deposits and liabilities as required by law. The carrying value of pledged securities was approximately $130,506 and $122,862 as of June 30, 2018 and December 31, 2017, respectively.

Page 12

Civista Bancshares, Inc.

Notes to Interim Consolidated Financial Statements (Unaudited)

Form 10-Q

(Amounts in thousands, except share data)

Securities with unrealized losses at June 30, 2018 and December 31, 2017 not recognized in income are as follows:

June 30, 2018	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	$	15,172	$	(159	)	$	11,366	$	(135	)	$	26,538	$	(294	)
Obligations of states and political subdivisions		27,449		(448	)		7,453		(253	)		34,902		(701	)
Mortgage-backed securities in gov’t sponsored entities		57,043		(1,027	)		19,721		(771	)		76,764		(1,798	)
Total temporarily impaired	$	99,664	$	(1,634	)	$	38,540	$	(1,159	)	$	138,204	$	(2,793	)

December 31, 2017	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	$	20,449	$	(100	)	$	6,617	$	(92	)	$	27,066	$	(192	)
Obligations of states and political subdivisions		4,057		(41	)		7,309		(131	)		11,366		(172	)
Mortgage-backed securities in gov’t sponsored entities		29,534		(195	)		22,199		(495	)		51,733		(690	)
Total temporarily impaired	$	54,040	$	(336	)	$	36,125	$	(718	)	$	90,165	$	(1,054	)

At June 30, 2018, there were 130 securities in the portfolio with unrealized losses mainly due to higher market rates when compared to the time of purchase. Unrealized losses on securities have not been recognized into income because the issuers’ securities 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 market yields increasing. 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 for the three and six-months ended June 30, 2018, and the portion of unrealized gains and losses for the period that relates to equity investments held at June 30, 2018:

	Three months ended		Six months ended
	June 30, 2018		June 30, 2018
Net gains recognized on equity securities during the    period	$	35	$	75
Less: Net gains (losses) realized on the sale of equity securities    during the period		—		—
Unrealized gains recognized in equity securities held at    reporting date	$	35	$	75

(4) Loans

Loan balances were as follows:

	June 30, 2018			December 31, 2017
Commercial & Agriculture	$	153,742		$	152,473
Commercial Real Estate- Owner Occupied		169,745			164,099
Commercial Real Estate- Non-Owner Occupied		431,095			425,623
Residential Real Estate		271,207			268,735
Real Estate Construction		100,812			97,531
Farm Real Estate		37,845			39,461
Consumer and Other		15,586			16,739
Total loans		1,180,032			1,164,661
Allowance for loan losses		(12,867	)		(13,134	)
Net loans	$	1,167,165		$	1,151,527

Included in total loans above are deferred loan fees of $52 at June 30, 2018 and $223 at December 31, 2017.

Page 13

Civista Bancshares, Inc.

Notes to Interim Consolidated Financial Statements (Unaudited)

Form 10-Q

(Amounts in thousands, except share data)

(5) Allowance for Loan Losses

Management has an established methodology for determining 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 and lease losses, the Company has segmented certain loans in the portfolio by product type. 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 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 balance sheet date. The Company considers the allowance for loan losses of $12,867 adequate to cover loan losses inherent in the loan portfolio, at June 30, 2018. The following tables present, by portfolio segment, the changes in the allowance for loan losses for the three and six months ended June 30, 2018 and 2017.

Allowance for loan losses:

For the six months ended June 30, 2018	Beginningbalance		Charge-offs			Recoveries		Provision			Ending Balance
Commercial & Agriculture	$	1,562	$	(248	)	$	104	$	212		$	1,630
Commercial Real Estate:
Owner Occupied		2,043		(193	)		130		181			2,161
Non-Owner Occupied		5,307		(45	)		21		(148	)		5,135
Residential Real Estate		1,910		(62	)		93		(250	)		1,691
Real Estate Construction		834		—			—		27			861
Farm Real Estate		430		—			3		(23	)		410
Consumer and Other		290		(103	)		33		80			300
Unallocated		758		—			—		(79	)		679
Total	$	13,134	$	(651	)	$	384	$	—		$	12,867

For the six months ended June 30, 2018, the allowance for Commercial & Agriculture loans increased due to an increase in general reserves required for this type as a result of higher loan balances. The result was represented as an increase 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 higher loan balances. The allowance for Commercial Real Estate – Non-Owner Occupied loans was reduced by a decrease in general reserves required for this type as a result of lower loss rates. The allowance for Residential Real Estate loans was reduced by a decrease in general reserves required for this type as a result of a decrease in loss rates, represented by a decrease in the provision. 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. 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.

Page 14

Civista Bancshares, Inc.

Notes to Interim Consolidated Financial Statements (Unaudited)

Form 10-Q

(Amounts in thousands, except share data)

Allowance for loan losses:

For the six months ended June 30, 2017	Beginning balance		Charge-offs			Recoveries		Provision			Ending Balance
Commercial & Agriculture	$	2,018	$	(1	)	$	83	$	(492	)	$	1,608
Commercial Real Estate:
Owner Occupied		2,171		(210	)		18		31			2,010
Non-Owner Occupied		4,606		—			9		124			4,739
Residential Real Estate		3,089		(196	)		87		(304	)		2,676
Real Estate Construction		420		—			19		43			482
Farm Real Estate		442		—			—		(17	)		425
Consumer and Other		314		(81	)		14		77			324
Unallocated		245		—			—		538			783
Total	$	13,305	$	(488	)	$	230	$	—		$	13,047

For the six months ended June 30, 2017, the allowance for Commercial & Agriculture loans was reduced by a decrease in general reserves as a result of lower loss rates, offset by an increase in the specific reserves required for this type.  The result of these changes was represented as a decrease in the provision.  The allowance for Commercial Real Estate – Owner Occupied loans was reduced by a decrease in general reserves as a result of lower loss rates.  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, offset by lower loss rates.  The allowance for Residential Real Estate loans was reduced by a decrease in general reserves required for this type as a result of a decrease in loss rates, represented by a decrease in the provision.  The allowance for Real Estate Construction loans increased due to higher outstanding loan balances for this type of loan and recoveries.  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 of these changes was represented as a decrease in the provision.  The allowance for Consumer and Other loans was increased by an increase in general reserves required for this type as a result of higher loss rates.  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.

Allowance for loan losses:

For the three months ended June 30, 2018	Beginning balance		Charge-offs			Recoveries		Provision			Ending Balance
Commercial & Agriculture	$	1,359	$	(123	)	$	85	$	309		$	1,630
Commercial Real Estate:
Owner Occupied		2,030		—			121		10			2,161
Non-Owner Occupied		5,670		(1	)		7		(541	)		5,135
Residential Real Estate		1,750		(40	)		35		(54	)		1,691
Real Estate Construction		820		—			—		41			861
Farm Real Estate		411		—			2		(3	)		410
Consumer and Other		247		(62	)		29		86			300
Unallocated		527		—			—		152			679
Total	$	12,814	$	(226	)	$	279	$	—		$	12,867

For the three months ended June 30, 2018, the allowance for Commercial & Agriculture loans increased due to an increase in general reserves required for this type as a result of higher loan balances. The result was represented as an increase 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 higher loan balances. The allowance for Commercial Real Estate – Non-Owner Occupied loans was reduced by a decrease in general reserves required for this type as a result of lower loss rates.  The allowance for Residential Real Estate loans was reduced by a decrease in general reserves required for this type as a result of a decrease in loss rates, represented by a decrease in the provision. 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. 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.

Page 15

Civista Bancshares, Inc.

Notes to Interim Consolidated Financial Statements (Unaudited)

Form 10-Q

(Amounts in thousands, except share data)

Allowance for loan losses:

For the three months ended June 30, 2017	Beginning balance		Charge-offs			Recoveries		Provision			Ending Balance
Commercial & Agriculture	$	1,569	$	—		$	27	$	12		$	1,608
Commercial Real Estate:
Owner Occupied		2,259		(210	)		16		(55	)		2,010
Non-Owner Occupied		4,543		—			4		192			4,739
Residential Real Estate		3,022		(107	)		32		(271	)		2,676
Real Estate Construction		413		—			14		55			482
Farm Real Estate		407		—			—		18			425
Consumer and Other		354		(40	)		11		(1	)		324
Unallocated		733		—			—		50			783
Total	$	13,300	$	(357	)	$	104	$	—		$	13,047

For the three months ended June 30, 2017, the increase in the allowance for Commercial & Agriculture loans was due to an increase in general reserves as a result of higher loan balances.  The result was represented as an increase in the provision.  The allowance for Commercial Real Estate – Owner Occupied loans was reduced by a decrease in general reserves as a result of lower loss rates.  The result was represented as a decrease 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, offset by lower loss rates.  The allowance for Residential Real Estate loans was reduced by a decrease in general reserves required for this type as a result of a decrease in loss rates, represented by a decrease in the provision.  The allowance for Real Estate Construction loans increased due to higher outstanding loan balances for this type of loan and recoveries.  The allowance for Farm Real Estate loans increased due to higher outstanding loan balances for this type of loan.  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.

The following tables present, by portfolio segment, the allocation of the allowance for loan losses and related loan balances as of June 30, 2018 and December 31, 2017.

June 30, 2018	Loans acquired with credit deterioration		Loans individually evaluated for impairment		Loans collectively evaluated for impairment		Total
Allowance for loan losses:
Commercial & Agriculture	$	—	$	5	$	1,625	$	1,630
Commercial Real Estate:
Owner Occupied		—		8		2,153		2,161
Non-Owner Occupied		—		—		5,135		5,135
Residential Real Estate		29		100		1,562		1,691
Real Estate Construction		—		—		861		861
Farm Real Estate		—		6		404		410
Consumer and Other		—		—		300		300
Unallocated		—		—		679		679
Total	$	29	$	119	$	12,719	$	12,867
Outstanding loan balances:
Commercial & Agriculture	$	61	$	961	$	152,720	$	153,742
Commercial Real Estate:
Owner Occupied		—		517		169,228		169,745
Non-Owner Occupied		—		39		431,056		431,095
Residential Real Estate		108		1,307		269,792		271,207
Real Estate Construction		—		—		100,812		100,812
Farm Real Estate		—		778		37,067		37,845
Consumer and Other		—		—		15,586		15,586
Total	$	169	$	3,602	$	1,176,261	$	1,180,032

Page 16

Civista Bancshares, Inc.

Notes to Interim Consolidated Financial Statements (Unaudited)

Form 10-Q

(Amounts in thousands, except share data)

December 31, 2017	Loans acquired with credit deterioration		Loans individually evaluated for impairment		Loans collectively evaluated for impairment		Total
Allowance for loan losses:
Commercial & Agriculture	$	82	$	4	$	1,476	$	1,562
Commercial Real Estate:
Owner Occupied		—		6		2,037		2,043
Non-Owner Occupied		—		—		5,307		5,307
Residential Real Estate		44		109		1,757		1,910
Real Estate Construction		—		—		834		834
Farm Real Estate		—		6		424		430
Consumer and Other		—		—		290		290
Unallocated		—		—		758		758
Total	$	126	$	125	$	12,883	$	13,134
Outstanding loan balances:
Commercial & Agriculture	$	87	$	438	$	151,948	$	152,473
Commercial Real Estate:
Owner Occupied		—		1,010		163,089		164,099
Non-Owner Occupied		—		44		425,579		425,623
Residential Real Estate		128		1,360		267,247		268,735
Real Estate Construction		—		—		97,531		97,531
Farm Real Estate		—		608		38,853		39,461
Consumer and Other		—		—		16,739		16,739
Total	$	215	$	3,460	$	1,160,986	$	1,164,661

The following tables present credit exposures by internally assigned grades as of June 30, 2018 and December 31, 2017. 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 grading 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.

Page 17

Civista Bancshares, Inc.

Notes to Interim Consolidated Financial Statements (Unaudited)

Form 10-Q

(Amounts in thousands, except share data)

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.

June 30, 2018	Pass		Special Mention		Substandard		Doubtful		Ending Balance
Commercial & Agriculture	$	148,387	$	2,297	$	3,058	$	—	$	153,742
Commercial Real Estate:
Owner Occupied		163,160		1,256		5,329		—		169,745
Non-Owner Occupied		428,084		2,288		723		—		431,095
Residential Real Estate		60,275		1,831		5,091		—		67,197
Real Estate Construction		91,406		14		1,289		—		92,709
Farm Real Estate		29,816		5,079		2,950		—		37,845
Consumer and Other		1,272		—		14		—		1,286
Total	$	922,400	$	12,765	$	18,454	$	—	$	953,619

December 31, 2017	Pass		Special Mention		Substandard		Doubtful		Ending Balance
Commercial & Agriculture	$	140,842	$	8,412	$	3,219	$	—	$	152,473
Commercial Real Estate:
Owner Occupied		155,756		1,166		7,177		—		164,099
Non-Owner Occupied		422,363		2,321		939		—		425,623
Residential Real Estate		62,628		1,997		5,873		—		70,498
Real Estate Construction		91,545		15		27		—		91,587
Farm Real Estate		25,228		11,236		2,997		—		39,461
Consumer and Other		1,312		—		70		—		1,382
Total	$	899,674	$	25,147	$	20,302	$	—	$	945,123

The following tables present performing and nonperforming loans based solely on payment activity for the periods ended June 30, 2018 and December 31, 2017 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.

June 30, 2018	Residential Real Estate		Real Estate Construction		Consumer and Other		Total
Performing	$	204,010	$	8,103	$	14,266	$	226,379
Nonperforming		—		—		34		34
Total	$	204,010	$	8,103	$	14,300	$	226,413

December 31, 2017	Residential Real Estate		Real Estate Construction		Consumer and Other		Total
Performing	$	198,237	$	5,944	$	15,341	$	219,522
Nonperforming		—		—		16		16
Total	$	198,237	$	5,944	$	15,357	$	219,538

Page 18

Civista Bancshares, Inc.

Notes to Interim Consolidated Financial Statements (Unaudited)

Form 10-Q

(Amounts in thousands, except share data)

The following tables include an aging analysis of the recorded investment of past due loans outstanding as of June 30, 2018 and December 31, 2017.

June 30, 2018	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	$	186	$	—	$	663	$	849	$	152,832	$	61	$	153,742	$	—
Commercial Real Estate:
Owner Occupied		176		195		452		823		168,922		—		169,745		—
Non-Owner Occupied		—		—		155		155		430,940		—		431,095		—
Residential Real Estate		440		307		533		1,280		269,819		108		271,207		—
Real Estate Construction		—		—		27		27		100,785		—		100,812		—
Farm Real Estate		149		78		181		408		37,437		—		37,845		—
Consumer and Other		123		22		39		184		15,402		—		15,586		34
Total	$	1,074	$	602	$	2,050	$	3,726	$	1,176,137	$	169	$	1,180,032	$	34

December 31, 2017	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	$	575	$	2	$	685	$	1,262	$	151,124	$	87	$	152,473	$	—
Commercial Real Estate:
Owner Occupied		897		104		484		1,485		162,614		—		164,099		—
Non-Owner Occupied		133		—		470		603		425,020		—		425,623		—
Residential Real Estate		1,613		229		785		2,627		265,980		128		268,735		—
Real Estate Construction		—		—		27		27		97,504		—		97,531		—
Farm Real Estate		27		—		186		213		39,248		—		39,461		—
Consumer and Other		92		96		16		204		16,535		—		16,739		16
Total	$	3,337	$	431	$	2,653	$	6,421	$	1,158,025	$	215	$	1,164,661	$	16

The following table presents loans on nonaccrual status, excluding purchased credit-impaired (PCI) loans, as of June 30, 2018 and December 31, 2017.

	June 30, 2018		December 31, 2017
Commercial & Agriculture	$	856	$	887
Commercial Real Estate:
Owner Occupied		810		1,476
Non-Owner Occupied		252		711
Residential Real Estate		2,261		2,778
Real Estate Construction		27		27
Farm Real Estate		181		186
Consumer and Other		11		67
Total	$	4,398	$	6,132

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 the Company 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. Payments received on nonaccrual loans are applied to the unpaid principal balance. 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 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.

Page 19

Civista Bancshares, Inc.

Notes to Interim Consolidated Financial Statements (Unaudited)

Form 10-Q

(Amounts in thousands, except share data)

Modifications: A modification of a loan constitutes a TDR when the Company for economic or legal reasons related to a borrower’s financial difficulties grants a concession to the borrower that it would not otherwise consider. The Company 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. Residential Real Estate loans modified in a TDR primarily involve interest rate reductions where monthly payments are 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 fair value of the collateral, less any selling costs, if the loan is collateral dependent. Management exercises significant judgment in developing these estimates. As of June 30, 2018, TDRs accounted for $148 of the allowance for loan losses. As of December 31, 2017, TDRs accounted for $169 of the allowance for loan losses.

Loan modifications that are considered TDRs completed during the periods ended June 30, 2018 and June 30, 2017 were as follows:

	For the Six-Month Period Ended
	June 30, 2018
	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial & Agriculture		3	$	591	$	591
Commercial Real Estate—Owner Occupied		—		—		—
Commercial Real Estate—Non-Owner Occupied		—		—		—
Residential Real Estate		—		—		—
Real Estate Construction		—		—		—
Farm Real Estate		—		—		—
Consumer and Other		—		—		—
Total Loan Modifications		3	$	591	$	591

	For the Six-Month Period Ended
	June 30, 2017
	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial & Agriculture		—	$	—	$	—
Commercial Real Estate—Owner Occupied		—		—		—
Commercial Real Estate—Non-Owner Occupied		—		—		—
Residential Real Estate		1		13		13
Real Estate Construction		—		—		—
Farm Real Estate		—		—		—
Consumer and Other		—		—		—
Total Loan Modifications		1	$	13	$	13

Page 20

Civista Bancshares, Inc.

Notes to Interim Consolidated Financial Statements (Unaudited)

Form 10-Q

(Amounts in thousands, except share data)

	For the three months ended
	June 30, 2018
	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial & Agriculture		—	$	—	$	—
Commercial Real Estate—Owner Occupied		—		—		—
Commercial Real Estate—Non-Owner Occupied		—		—		—
Residential Real Estate		—		—		—
Real Estate Construction		—		—		—
Farm Real Estate		—		—		—
Consumer and Other		—		—		—
Total Loan Modifications		—	$	—	$	—

	For the three months ended
	June 30, 2017
	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial & Agriculture		—	$	—	$	—
Commercial Real Estate—Owner Occupied		—		—		—
Commercial Real Estate—Non-Owner Occupied		—		—		—
Residential Real Estate		1		13		13
Real Estate Construction		—		—		—
Farm Real Estate		—		—		—
Consumer and Other		—		—		—
Total Loan Modifications		1	$	13	$	13

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 origination loans, so modified loans present a higher risk of loss than do new origination loans.

During both the three- and six-month periods ended June 30, 2018 and June 30, 2017, there were no defaults on loans that were modified and considered TDRs during the respective twelve previous months.

Page 21

Civista Bancshares, Inc.

Notes to Interim Consolidated Financial Statements (Unaudited)

Form 10-Q

(Amounts in thousands, except share data)

Impaired Loans: Larger (greater than $350) Commercial & Agricultural and Commercial Real Estate loan relationships, all TDRs and Residential Real Estate and Consumer loans that are part of a larger relationship are tested for impairment on a quarterly basis. 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 June 30, 2018 and December 31, 2017.

	June 30, 2018						December 31, 2017
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:
Commercial & Agriculture	$	571	$	571			$	—	$	—
Commercial Real Estate:
Owner Occupied		207		207				693		913
Non-Owner Occupied		39		43				44		48
Residential Real Estate		937		1,009				977		1,049
Farm Real Estate		328		328				148		148
Consumer and Other		—		—				—		—
Total		2,082		2,158				1,862		2,158
With an allowance recorded:
Commercial & Agriculture		390		390	$	5		438		438	$	4
Commercial Real Estate:
Owner Occupied		310		310		8		317		317		6
Non-Owner Occupied		—		—		—		—		—		—
Residential Real Estate		370		374		100		383		387		109
Farm Real Estate		450		450		6		460		460		6
Total		1,520		1,524		119		1,598		1,602		125
Total:
Commercial & Agriculture		961		961		5		438		438		4
Commercial Real Estate:
Owner Occupied		517		517		8		1,010		1,230		6
Non-Owner Occupied		39		43		—		44		48		—
Residential Real Estate		1,307		1,383		100		1,360		1,436		109
Farm Real Estate		778		778		6		608		608		6
Consumer and Other		—		—		—		—		—		—
Total	$	3,602	$	3,682	$	119	$	3,460	$	3,760	$	125

The following table includes the average recorded investment and interest income recognized for impaired financing receivables for the three- and six-month periods ended June 30, 2018 and 2017.

	June 30, 2018				June 30, 2017
For the six months ended	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial & Agriculture	$	808	$	13	$	1,756	$	20
Commercial Real Estate—Owner Occupied		686		17		1,829		48
Commercial Real Estate—Non-Owner Occupied		42		3		357		3
Residential Real Estate		1,334		34		1,610		39
Real Estate Construction		—		—		—		—
Farm Real Estate		726		15		614		13
Consumer and Other		—		—		—		—
Total	$	3,596	$	82	$	6,166	$	123

Page 22

Civista Bancshares, Inc.

Notes to Interim Consolidated Financial Statements (Unaudited)

Form 10-Q

(Amounts in thousands, except share data)

	June 30, 2018				June 30, 2017
For the three months ended:	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial & Agriculture	$	993	$	6	$	1,643	$	6
Commercial Real Estate—Owner Occupied		524		8		1,795		26
Commercial Real Estate—Non-Owner Occupied		41		2		356		2
Residential Real Estate		1,321		17		1,572		19
Real Estate Construction		—		—		—		—
Farm Real Estate		785		8		614		7
Consumer and Other		—		—		—		—
Total	$	3,664	$	41	$	5,980	$	60

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

	For the Six-Month Period Ended June 30, 2018			For the Six-Month Period Ended June 30, 2017
	(In Thousands)			(In Thousands)
Balance at beginning of period	$	15		$	49
Acquisition of PCI loans		—			—
Accretion		(9	)		(18	)
Balance at end of period	$	6		$	31

	For the Three-Month Period Ended June 30, 2018			For the Three-Month Period Ended June 30, 2017
	(In Thousands)			(In Thousands)
Balance at beginning of period	$	8		$	40
Acquisition of PCI loans		—			—
Accretion		(2	)		(9	)
Balance at end of period	$	6		$	31

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

	At June 30, 2018		At December 31, 2017
	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	$	720	$	775
Carrying amount		169		215

There has been $29 and $126 in allowance for loan losses recorded for acquired loans with or without specific evidence of deterioration in credit quality as of June 30, 2018 and December 31, 2017, respectively.

Foreclosed Assets Held For Sale

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 June 30, 2018 and December 31, 2017, a total of $0 and $16, respectively of foreclosed assets were included in other assets. As of June 30, 2018 and December 31, 2017, the Company had initiated formal foreclosure procedures on $379 and $239, respectively, of consumer residential mortgages.

Page 23

Civista Bancshares, Inc.

Notes to Interim Consolidated Financial Statements (Unaudited)

Form 10-Q

(Amounts in thousands, except share data)

(6) Other Comprehensive Income

The following table presents the changes in each component of accumulated other comprehensive income (loss), net of tax. 

	For the Six-Month Period Ended									For the Six-Month Period Ended
	June 30, 2018(a)									June 30, 2017(a)
	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	$	3,185		$	(4,309	)	$	(1,124	)	$	2,008	$	(4,345	)	$	(2,337	)
Other comprehensive income before reclassifications		(3,085	)		—			(3,085	)		1,258		—			1,258
Amounts reclassified from accumulated other    comprehensive loss		5			226			231			—		343			343
Net current-period other comprehensive income		(3,080	)		226			(2,854	)		1,258		343			1,601
Reclassification of equity securities from accumulated    other comprehensive loss		(278	)		—			(278	)		—		—			—
Ending balance	$	(173	)	$	(4,083	)	$	(4,256	)	$	3,266	$	(4,002	)	$	(736	)

(a) Amounts in parentheses indicate debits on the consolidated balance sheets.

The following table presents the amounts reclassified out of each component of accumulated other comprehensive income (loss).

	Amount Reclassified from Accumulated Other Comprehensive Income (Loss) (a)
Details about Accumulated Other Comprehensive (Loss) Components	For the Six months ended June 30, 2018			For the Six months ended June 30, 2017			Affected Line Item in the Statement Where Net Income is Presented
Unrealized gains and losses on available-for-sale securities	$	(6	)	$	—		Net (gain) loss on securities    available for sale
Tax effect		1			—		Income tax expense
		(5	)		—		Net of tax
Amortization of defined benefit pension items
Actuarial gains/(losses) (b)		(286	)		(520	)	Salaries, wages and benefits
Tax effect		60			177		Income tax expense
		(226	)		(343	)	Net of tax
Total reclassifications for the period	$	(231	)	$	(343	)	Net of tax

The following table presents the changes in each component of accumulated other comprehensive income (loss), net of tax.

	For the Three-Month Period Ended									For the Three-Month Period Ended
	June 30, 2018(a)									June 30, 2017(a)
	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	$	368		$	(4,196	)	$	(3,828	)	$	2,307	$	(4,283	)	$	(1,976	)
Other comprehensive income before reclassifications		(546	)		—			(546	)		959		—			959
Amounts reclassified from accumulated other    comprehensive loss		5			113			118			—		281			281
Net current-period other comprehensive income		(541	)		113			(428	)		959		281			1,240
Ending balance	$	(173	)	$	(4,083	)	$	(4,256	)	$	3,266	$	(4,002	)	$	(736	)

(a) Amounts in parentheses indicate debits on the consolidated balance sheets.

Page 24

Civista Bancshares, Inc.

Notes to Interim Consolidated Financial Statements (Unaudited)

Form 10-Q

(Amounts in thousands, except share data)

The following table presents the amounts reclassified out of each component of accumulated other comprehensive income (loss).

	Amount Reclassified from Accumulated Other Comprehensive Income (Loss) (a)
Details about Accumulated Other Comprehensive (Loss) Components	For the Three months ended June 30, 2018			For the Three months ended June 30, 2017			Affected Line Item in the Statement Where Net Income is Presented
Unrealized gains and losses on available-for-sale securities	$	(6	)	$	—		Net (gain) loss on securities    available for sale
Tax effect		1			—		Income tax expense
		(5	)		—		Net of tax
Amortization of defined benefit pension items
Actuarial gains/(losses) (b)		(143	)		(426	)	Other operating expenses
Tax effect		30			145		Income tax expense
		(113	)		(281	)	Net of tax
Total reclassifications for the period	$	(118	)	$	(281	)	Net of tax

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

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

(7) Goodwill and Intangible Assets

There has been no change in the carrying amount of goodwill of $27,095 for the periods ended June 30, 2018 and December 31, 2017. Management performs an evaluation of goodwill for impairment annually, or more frequently if events or changes in circumstances indicate that the asset might be impaired. Management last performed an evaluation of the Company’s goodwill during the fourth quarter of 2017 and concluded that the Company’s goodwill was not impaired at December 31, 2017.

Acquired intangible assets, other than goodwill, as of June 30, 2018 and December 31, 2017 were as follows:

	2018						2017
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Amortized intangible assets(1):
MSRs	$	1,134	$	364	$	770	$	1,065	$	322	$	743
Core deposit intangibles		7,274		6,797		477		7,274		6,738		536
Total amortized intangible assets	$	8,408	$	7,161	$	1,247	$	8,339	$	7,060	$	1,279

(1) Excludes fully amortized intangible assets

Aggregate core deposit intangible amortization expense was $26, $158, $59 and $325 for the three and six-months ended June 30, 2018 and 2017, respectively.

Aggregate mortgage servicing rights amortization was $27, $17, $43 and $28 for the three and six-months ended June 30, 2018 and 2017, respectively.

Page 25

Civista Bancshares, Inc.

Notes to Interim Consolidated Financial Statements (Unaudited)

Form 10-Q

(Amounts in thousands, except share data)

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

	MSRs		Core deposit intangibles		Total
2018	$	21	$	52	$	73
2019		42		88		130
2020		42		72		114
2021		42		68		110
2022		42		68		110
Thereafter		581		129		710
	$	770	$	477	$	1,247

(8) Short-Term Borrowings

Short-term borrowings, which consist of federal funds purchased and other short-term borrowings are included in Federal Home Loan Bank advances on the Consolidated Balance Sheets and are summarized as follows:

	At June 30, 2018					At December 31, 2017
	Federal Funds Purchased		Short-term Borrowings			Federal Funds Purchased			Short-term Borrowings
Outstanding balance	$	—	$	151,200		$	—		$	56,900
Maximum indebtedness		—		153,600			20,000			115,050
Average balance		—		64,241			119			38,825
Average rate paid		—		1.78	%		1.68	%		1.12	%
Interest rate on balance		—		1.92	%		—			1.42	%

Average balance during the period represents daily averages. Average rate paid represents interest expense divided by the related average balances.

These borrowing transactions can range from overnight to six months in maturity. The average maturity was one day at June 30, 2018 and December 31, 2017.

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 June 30, 2018 and December 31, 2017. All of the repurchase agreements are overnight agreements.

	June 30, 2018		December 31, 2017
Securities pledged for repurchase agreements:
U.S. Treasury securities	$	632	$	874
Obligations of U.S. government agencies		13,598		20,881
Total securities pledged	$	14,230	$	21,755
Gross amount of recognized liabilities for repurchase agreements	$	14,230	$	21,755
Amounts related to agreements not included in offsetting    disclosures above	$	—	$	—

Page 26

Civista Bancshares, Inc.

Notes to Interim Consolidated Financial Statements (Unaudited)

Form 10-Q

(Amounts in thousands, except share data)

(9) Earnings per Common Share

Basic earnings per common share are computed as net income available to common shareholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share include the dilutive effect, if any, of additional potential common shares issuable under the Company’s equity incentive plan, computed using the treasury stock method, and the impact of the Company’s convertible preferred stock using the “if converted” method.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Basic
Net income	$	3,014	$	3,596	$	10,003	$	8,231
Preferred stock dividends		299		308		602		627
Net income available to common shareholders—basic	$	2,715	$	3,288	$	9,401	$	7,604
Weighted average common shares outstanding—basic		10,470,839		10,162,528		10,342,763		9,634,363
Basic earnings per common share	$	0.26	$	0.32	$	0.91	$	0.79
Diluted
Net income available to common shareholders—basic	$	2,715	$	3,288	$	9,401	$	7,604
Preferred stock dividends		299		308		602		627
Net income available to common shareholders—diluted	$	3,014	$	3,596	$	10,003	$	8,231
Weighted average common shares outstanding for basic    earnings per common share		10,470,839		10,162,528		10,342,763		9,634,363
Add: Dilutive effects of convertible preferred shares		2,144,497		2,431,349		2,263,652		2,469,465
Average shares and dilutive potential common shares    outstanding—diluted		12,615,336		12,593,877		12,606,415		12,103,828
Diluted earnings per common share	$	0.24	$	0.29	$	0.79	$	0.68

For the three-month period ended June 30, 2018 there were 2,144,497 dilutive shares related to the Company’s convertible preferred stock.  For the six-month period ended June 30, 2018 there were 2,263,652 dilutive shares related to the Company’s convertible preferred stock.  For the three-month period ended June 30, 2017 there were 2,431,349 dilutive shares related to the Company’s convertible preferred stock.  For the six-month period ended June 30, 2017 there were 2,469,465 dilutive shares related to the Company’s convertible preferred stock.  Under the “if converted” method, all convertible preferred shares are assumed to be converted into common shares at the corresponding conversion rate. These additional shares are then added to the common shares outstanding to calculate diluted earnings per share.

(10) 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 customers’ financing needs. These are agreements to provide credit or to support the credit of others, as long as the conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Off-balance-sheet risk of 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 commitment. The contractual amounts of financial instruments with off-balance-sheet risk were as follows for June 30, 2018 and December 31, 2017:

	Contract Amount
	June 30, 2018				December 31, 2017
	Fixed Rate		Variable Rate		Fixed Rate		Variable Rate
Commitment to extend credit:
Lines of credit and construction loans	$	5,457	$	278,612	$	4,982	$	286,925
Overdraft protection		3		33,682		7		33,353
Letters of credit		624		2,350		624		2,637
	$	6,084	$	314,644	$	5,613	$	322,915

Page 27

Civista Bancshares, Inc.

Notes to Interim Consolidated Financial Statements (Unaudited)

Form 10-Q

(Amounts in thousands, except share data)

Commitments to make loans are generally made for a period of one year or less. Fixed rate loan commitments included in the table above had interest rates ranging from 2.88% to 8.50% at June 30, 2018 and from 2.88% to 10.25% at December 31, 2017. 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 $8,284 on June 30, 2018 and $4,112 on December 31, 2017.

(11) Pension Information

The Company sponsors a pension plan which is a noncontributory defined benefit retirement plan. 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 2014, the Company amended the pension plan again to provide that no additional benefits would accrue beyond April 30, 2014.

Net periodic pension benefit was as follows:

	Three months ended						Six Months Ended
	June 30,						June 30,
	2018			2017			2018			2017
Service cost	$	—		$	—		$	—		$	—
Interest cost		125			171			250			338
Expected return on plan assets		(273	)		(283	)		(546	)		(561	)
Other components		143			426			286			520
Net periodic pension benefit	$	(5	)	$	314		$	(10	)	$	297

The Company does not expect to make any contribution to its pension plan in 2018. The Company contributed $2,000 in 2017.

(12) 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 269,495 shares available for future grants under this plan at June 30, 2018.

During each of the last three 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.

On May 16, 2017, 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 of 6,804 common shares were issued to Civista directors as payment of their retainer for their service on the Civista Board of Directors covering the period up to the 2018 Annual Meeting. This issuance was expensed in its entirety when the shares were issued in the amount of $144.

On September 11, 2017, a newly appointed director of the Company’s banking subsidiary, Civista, was paid a retainer in the form of non-restricted common shares of the Company. The aggregate of 367 common shares was issued as payment of her retainer for her service on the Civista Board of Directors covering the period up to the 2018 Annual Meeting. This issuance was expensed in its entirety when the shares were issued in the amount of $8.

Finally, on May 17, 2018, 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 of 6,204 common shares were issued to Civista directors as payment of their retainer for their service on the Civista Board of Directors covering the period up to the 2019 Annual Meeting. This issuance was expensed in its entirety when the shares were issued in the amount of $144.

No options had been granted under the 2014 Incentive Plan as of June 30, 2018 and 2017.

Page 28

Civista Bancshares, Inc.

Notes to Interim Consolidated Financial Statements (Unaudited)

Form 10-Q

(Amounts in thousands, except share data)

The Company classifies share-based compensation for employees with “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 for the three- and six-month periods ended June 30, 2018:

	Three months ended				Six Months Ended
	June 30, 2018				June 30, 2018
	Number of Restricted Shares		Weighted Average Grant Date Fair Value		Number of Restricted Shares			Weighted Average Grant Date Fair Value
Nonvested at beginning of period		24,182	$	16.78		42,138		$	15.60
Granted		16,510		22.51		16,510			22.51
Vested		—		—		(17,956	)		14.01
Forfeited		—		—		—			—
Nonvested at end of period		40,692	$	19.11		40,692		$	19.11

The following is a summary of the status of the Company’s awarded restricted shares as of June 30, 2018:

At June 30, 2018
Date of Award	Shares		Remaining Expense		Remaining Vesting Period (Years)
January 15, 2016		6,160	$	54		2.50
March 11, 2016		5,256		16		0.50
March 20, 2017		7,814		81		1.50
March 20, 2017		4,952		93		3.50
April 10, 2018		8,294		145		2.50
April 10, 2018		8,216		169		4.50
		40,692	$	558		2.58

During the six months ended June 30, 2018, the Company recorded $129 of share-based compensation expense and $144 of director retainer fees for shares granted under the 2014 Incentive Plan. At June 30, 2018, the total compensation cost related to unvested awards not yet recognized is $558, which is expected to be recognized over the weighted average remaining life of the grants of 2.58 years.

(13) Fair Value Measurement

The Company uses a fair value hierarchy to measure fair value. This hierarchy describes three levels of inputs that may be used to measure fair value. 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.

Debt 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’s equity securities are not actively traded in an open market. The fair values of these equity securities available for sale is determined by using market data inputs for similar securities that are observable (Level 2 inputs).

The fair value of the 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. The changes in fair value of these assets/liabilities had no impact on net income or comprehensive income.

Page 29

Civista Bancshares, Inc.

Notes to Interim Consolidated Financial Statements (Unaudited)

Form 10-Q

(Amounts in thousands, except share data)

Impaired loans: The Company has measured impairment on impaired loans generally 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 ageof 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 as a Level 3 measurement.

Other real estate owned: OREO is carried at the lower of cost or fair value, which is measured at the date of 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 in the table below.

	Fair Value Measurements at June 30, 2018 Using:
Assets:	(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	$	—	$	29,399	$	—
Obligations of states and political subdivisions		—		117,648		—
Mortgage-backed securities in government sponsored entities		—		83,966		—
Total securities available for sale		—		231,013		—
Equity securities in financial institutions		—		907		—
Swap asset		—		2,375		—
Liabilities measured at fair value on a recurring basis:
Swap liability		—		2,375		—
Assets measured at fair value on a nonrecurring basis:
Impaired loans	$	—	$	—	$	1,350

	Fair Value Measurements at December 31, 2017 Using:
Assets:	(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	$	—	$	30,358	$	—
Obligations of states and political subdivisions		—		118,056		—
Mortgage-backed securities in government sponsored entities		—		81,816		—
Total securities available for sale		—		230,230		—
Equity securities in financial institutions		—		832		—
Swap asset		—		1,560		—
Liabilities measured at fair value on a recurring basis:
Swap liability		—		1,560		—
Assets measured at fair value on a nonrecurring basis:
Impaired loans	$	—	$	—	$	1,040
Other real estate owned		—		—		16

Page 30

Civista Bancshares, Inc.

Notes to Interim Consolidated Financial Statements (Unaudited)

Form 10-Q

(Amounts in thousands, except share data)

The following table presents quantitative information about the Level 3 significant unobservable inputs for assets and liabilities measured at fair value on a nonrecurring basis at June 30, 2018.

	Quantitative Information about Level 3 Fair Value Measurements
June 30, 2018	Fair Value		Valuation Technique	Unobservable Input	Range	Weighted Average
Impaired loans	$	1,350	Appraisal of collateral	Appraisal adjustments	10% - 38%	30%
				Liquidation expense	0% - 10%	3%
				Holding period	0 - 30 months	21 months

The following table 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, 2017.

	Quantitative Information about Level 3 Fair Value Measurements
December 31, 2017	Fair Value		Valuation Technique	Unobservable Input	Range	Weighted Average
Impaired loans	$	1,040	Appraisal of collateral	Appraisal adjustments	0% - 30%	16%
				Liquidation expense	0% - 10%	8%
				Holding period	0 - 30 months	20 months
Other real estate owned	$	16	Appraisal of collateral	Appraisal adjustments	10% - 30%	10%
				Liquidation expense	0% - 10%	10%

The methods of determining the fair value of assets and liabilities presented in the note are consistent with our methodologies disclosed in the Company’s 2017 Form 10-K, except for the valuation of loans held for investment which was impacted by the adoption of ASU 2016-01.  In accordance with ASU 2016-01, the fair value of loans held for investment, excluding impaired loans measured at fair value on a non-recurring basis, is estimated using discounted cash flow analyses.  The discount rates used to determine fair value use interest rate spreads that reflect factors such as liquidity, credit and nonperformance risk of the loans.  Loans are considered a Level 3 classification.

The carrying amount and fair values of financial instruments not measured at fair value on a recurring or nonrecurring basis at June 30, 2018 are as follows:

June 30, 2018	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from financial institutions	$	41,156	$	41,156	$	41,156	$	—	$	—
Other securities		14,247		14,247		14,247		—		—
Loans, held for sale		4,058		4,058		4,058		—		—
Loans		1,167,165		1,161,845		—		—		1,161,845
Bank owned life insurance		25,411		25,411		25,411		—		—
Accrued interest receivable		4,489		4,489		4,489		—		—
Financial Liabilities:
Nonmaturing deposits		1,006,836		1,006,836		1,006,836		—		—
Time deposits		139,336		138,624		—		—		138,624
Short-term FHLB advances		151,200		151,200		151,200		—		—
Long-term FHLB advances		5,000		4,996		—		—		4,996
Securities sold under agreement to repurchase		14,230		14,230		14,230		—		—
Subordinated debentures		29,427		32,312		—		—		32,312
Accrued interest payable		102		102		102		—		—

Page 31

Civista Bancshares, Inc.

Notes to Interim Consolidated Financial Statements (Unaudited)

Form 10-Q

(Amounts in thousands, except share data)

The carrying amount and fair values of financial instruments not measured at fair value on a recurring or nonrecurring basis at December 31, 2017 are as follows:

December 31, 2017	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from financial institutions	$	40,519	$	40,519	$	40,519	$	—	$	—
Loans, held for sale		2,197		2,197		2,197		—		—
Loans		1,151,527		1,146,969		—		—		1,146,969
Other securities		14,247		14,247		14,247		—		—
Bank owned life insurance		25,125		25,125		25,125		—		—
Accrued interest receivable		4,488		4,488		4,488		—		—
Financial Liabilities:
Nonmaturing deposits		981,021		981,021		981,021		—		—
Time deposits		223,902		223,626		—		—		223,626
Short-term FHLB advances		56,900		56,900		56,900		—		—
Long-term FHLB advances		15,000		14,964		—		—		14,964
Securities sold under agreement to repurchase		21,755		21,755		21,755		—		—
Subordinated debentures		29,427		31,052		—		—		31,052
Accrued interest payable		410		410		410		—		—

Cash and due from financial institutions: The carrying amounts for cash and due from financial institutions approximate fair value because they have original maturities of less than 90 days and do not present unanticipated credit concerns.

Other securities: The carrying value of regulatory stock approximates fair value based on applicable redemption provisions.

Loans, held-for-sale: Loans held for sale are priced individually at market rates on the day that the loan is locked for commitment to an investor. Because the holding period of such loans is typically short, the carrying value generally approximates the fair value at the time the commitment is received. All loans inthe held-for-sale account conform to Fannie Mae underwriting guidelines, with specific intent of the loan being purchased by an investor at the predetermined rate structure.

Loans, net of allowance for loan losses: Fair values for loans, other than impaired, are estimated for portfolios of loans with similar financial characteristics. The fair value of performing loans has been estimated by discounting expected future cash flows of the underlying portfolios. The discount rates used in these calculations are generally derived from the treasury yield curve and are calculated by discounting scheduled cash flows through the estimated maturity using estimated market discount rates that reflect the credit and interest rate inherent in the loan. The estimated maturity is based on the Company’s historical experience with repayments for each loan classification. Changes in these significant unobservable inputs used in discounted cash flow analysis, such as the discount rate or prepayment speeds, could lead to changes in the underlying fair value.

Bank owned life insurance: The carrying value of bank owned life insurance approximates the fair value based on applicable redemption provisions.

Accrued interest receivable and payable and securities sold under agreements to repurchase: The carrying amounts for accrued interest receivable, accrued interest payable and securities sold under agreements to repurchase approximate fair value because they are generally received or paid in 90 days or less and do not present unanticipated credit concerns.

Deposits: The fair value of deposits with no stated maturity, such as noninterest-bearing demand deposits, savings and NOW accounts, and money market accounts, is equal to the amount payable on demand.

The fair value of certificates of deposit is based on the discounted value of contractual cash flows. The discount rate is estimated using the market rates currently offered for deposits of similar remaining maturities.

The deposits’ fair value estimates do not include the benefit that results from the low-cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the market, commonly referred to as the core deposit intangible.

Page 32

Civista Bancshares, Inc.

Notes to Interim Consolidated Financial Statements (Unaudited)

Form 10-Q

(Amounts in thousands, except share data)

Federal Home Loan Bank (“FHLB”) advances: Rates available to the Company for borrowed funds with similar terms and remaining maturities are used to estimate the fair value of borrowed funds.

Subordinated debentures: The fair value of subordinated debentures is based on the discounted value of contractual cash flows of the underlying debt agreements. The discount rate is estimated using the current rate for the borrowing from the FHLB with the most similar terms.

(14) Derivative Hedging Instruments

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 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.

The following table summarizes the Company’s interest rate swap positions and the impact of a 1 basis point change in interest rates as of June 30, 2018.

	Notional Amount			Weighted Average Rate Received/(Paid)			Impact of a 1 basis point change in interest rates			Repricing Frequency
Derivative Assets	$	90,250			5.25	%	$	48		Monthly
Derivative Liabilities		(90,250	)		-5.25	%		(48	)	Monthly
Net Exposure	$	—					$	—

The following table summarizes the Company’s interest rate swap positions and the impact of a 1 basis point change in interest rates as of December 31, 2017.

	Notional Amount			Weighted Average Rate Received/(Paid)			Impact of a 1 basis point change in interest rates			Repricing Frequency
Derivative Assets	$	66,227			5.08	%	$	36		Monthly
Derivative Liabilities		(66,227	)		-5.08	%		(36	)	Monthly
Net Exposure	$	—					$	—

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.

(15) Qualified Affordable Housing Project Investments

The Company invests in certain qualified affordable housing projects. At June 30, 2018 and December 31, 2017, the balance of the investment for qualified affordable housing projects was $3,792 and $3,204, 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 $3,664 and $4,510 at June 30, 2018 and December 31, 2017, respectively.

During the six months ended June 30, 2018 and 2017, the Company recognized amortization expense with respect to its investments in qualified affordable housing projects of $258 and $165, offset by tax credits and other benefits from its investment in affordable housing tax credits of $426 and $276, respectively.During the three months ended June 30, 2018 and 2017, the Company recognized amortization expense with respect to its investments in qualified affordable housing projects of $129 and $82, offset by tax credits and other benefits from its investment in affordable housing tax credits of $207 and $138, respectively. During the three and six months ended June 30, 2018 and 2017, the Company did not incur impairment losses related to its investment in qualified affordable housing projects.

Page 33

Civista Bancshares, Inc.

Notes to Interim Consolidated Financial Statements (Unaudited)

Form 10-Q

(Amounts in thousands, except share data)

(16) Revenue Recognition

On January 1, 2018, the Company adopted ASU No. 2014-09 “Revenue from Contracts with Customers” (Topic 606) and all subsequent ASUs that modified Topic 606. As stated in Note 2 Significant Accounting Policies, the implementation of the new standard did not have a material impact on the measurement or recognition of revenue; as such, a cumulative effect adjustment to opening retained earnings was not deemed necessary. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts were not adjusted and continue to be reported in accordance with our historic accounting under Topic 605.

Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. 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. Topic 606 is applicable to noninterest revenue streams such as trust and asset management income, deposit related fees, interchange fees, merchant income, and annuity and insurance commissions. However, the recognition of these revenue streams did not change significantly upon adoption of Topic 606. Substantially all of the Company’s revenue is generated from contracts with customers. Noninterest revenue streams in-scope of Topic 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.

Page 34

Civista Bancshares, Inc.

Notes to Interim Consolidated Financial Statements (Unaudited)

Form 10-Q

(Amounts in thousands, except share data)

The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three- and six-months ended June 30, 2018 and 2017.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Noninterest Income
In-scope of Topic 606:
Service charges	$	1,359	$	1,387	$	2,493	$	2,432
ATM/Interchange fees		588		567		1,142		1,076
Wealth management fees		836		738		1,688		1,445
Tax refund processing fees		550		550		2,750		2,750
Other		228		174		448		367
Noninterest Income (in-scope of Topic 606)		3,561		3,416		8,521		8,070
Noninterest Income (out-of-scope of Topic 606)		829		685		1,485		1,167
Total Noninterest Income	$	4,390	$	4,101	$	10,006	$	9,237

Contract Balances

A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transactional activity, or standard month-end revenue accruals such as asset management fees based on month-end market values. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of June 30, 2018 and December 31, 2017, the Company did not have any significant contract balances.

Contract Acquisition Costs

In connection with the adoption of Topic 606, an entity is required to capitalize, and subsequently amortize into expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. Upon adoption of Topic 606, the Company did not capitalize any contract acquisition cost.

(17) Merger

On March 11, 2018, CBI and United Community Bancorp (“UCB”) and United Community Bank (“United Community”) entered into an Agreement and Plan of Merger (the “Merger Agreement”) with UCB and United Community, pursuant to which CBI will acquire UCB and its wholly-owned subsidiary, United Community.  It is anticipated that United Community will be merged with and into Civista, upon completion of the transaction.  At that time, United Community’s eight banking offices located in Southeastern Indiana, and its Loan Production office in Northern Kentucky, will become offices of Civista.As of December 31, 2017, UCB and United Community Bank had total consolidated assets of $546 million, total loans of $296 million and total deposits of $462 million.

Under the terms of the Merger Agreement, for each share of UCB common stock issued and outstanding,UCB shareholders have the right to receive 1.027 CBI common shares and $2.54 in cash, as each of those terms is defined in the Merger Agreement.  In addition, CBI has agreed to cash out all of the 212,563 outstanding UCB stock options for an amount equal to the difference between $26.22 per share and the exercise price of the stock options.  The aggregate cash consideration to be paid by CBI in respect of the outstanding UCB common shares and the cash-out of outstanding UCB stock options is approximately $13.6 million.

Regulatory approval has been received and the merger is anticipated to be completed during the third quarter of 2018, subject to the satisfaction of the closing conditions in the Merger Agreement.  

Page 35

Civista Bancshares, Inc.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Form 10-Q

(Amounts in thousands, except share data)

ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Introduction

The following discussion focuses on the consolidated financial condition of the Company at June 30, 2018 compared to December 31, 2017, and the consolidated results of operations for the three- and six-month period ended June 30, 2018, compared to the same period in 2017. This discussion should be read in conjunction with the consolidated financial statements and footnotes included in this Form 10-Q.

Forward-Looking Statements

This Quarterly Report on Form 10-Q may contain “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), relating to such matters as the Company’s 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, changes in financial markets or national or local economic conditions; sustained weakness or deterioration in the real estate market; volatility and direction of market interest rates; credit risks of lending activities; changes in the allowance for loan losses; legislation or regulatory changes or actions; increases in Federal Deposit Insurance Corporation (“FDIC”) insurance premiums and assessments; changes in tax laws; failure of or breach in our information and data processing systems; unforeseen litigation; and other risks identified from time-to-time in the Company’s other public documents on file 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, 2017, as supplemented by the risks identified in “Item 1A. Risk Factors” of the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2018. The Company does not undertake, and specifically disclaims, any obligation to publicly release the result of any revisions that may be made to any forward-looking statements to reflect occurrence of anticipated or unanticipated events or circumstances after the date of such statements, except as required by law.

Financial Condition

Total assets of the Company at June 30, 2018 were $1,548,454 compared to $1,525,857 at December 31, 2017, an increase of $22,597, or 1.5%. The increase in total assets was mainly attributable to increases in loans held for sale, loans and other assets. Total liabilities at June 30, 2018 were $1,358,606 compared to $1,341,396 at December 31, 2017, an increase of $17,210, or 1.3%. The increase in total liabilities was mainly attributable to an increase in FHLB advances offset by decreases in total deposits and securities sold under agreements to repurchase.

Loans outstanding as of June 30, 2018 and December 31, 2017 were as follows:

	June 30, 2018			December 31, 2017
Commercial & Agriculture	$	153,742		$	152,473
Commercial Real Estate—Owner Occupied		169,745			164,099
Commercial Real Estate—Non-Owner Occupied		431,095			425,623
Residential Real Estate		271,207			268,735
Real Estate Construction		100,812			97,531
Farm Real Estate		37,845			39,461
Consumer and Other		15,586			16,739
Total loans		1,180,032			1,164,661
Allowance for loan losses		(12,867	)		(13,134	)
Net loans	$	1,167,165		$	1,151,527

Net loans have increased $15,638 or 1.4% since December 31, 2017. The Commercial & Agriculture, Commercial Real Estate – Owner Occupied, Commercial Real Estate – Non-Owner Occupied, Residential Real Estate and Real Estate Construction loan portfolios increased $1,269, $5,646, $5,472, $2,472 and $3,281, respectively since December 31, 2017, while the Farm Real Estate and Consumer and Other loan portfolios decreased $1,616 and $1,153, respectively, since December 31, 2017.  At June 30, 2018, the net loan to deposit ratio was 101.8% compared to 95.6% at December 31, 2017.

Page 36

Civista Bancshares, Inc.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Form 10-Q

(Amounts in thousands, except share data)

During the first six months of 2018 and 2017, there were no provisions made to the allowance for loan losses from earnings. Net charge-offs for the first six months of 2018 totaled $267, compared to net charge offs of $258 in the first six months of 2017. For the first six months of 2018, the Company charged off a total of 29 loans. Ten Real Estate Mortgage loans totaling $62, eight Commercial and Agriculture loan totaling $248, one Commercial Real Estate – Owner Occupied loan totaling $193, one Commercial Real Estate – Non-Owner Occupied loan totaling $45 and nine Consumer and Other loans totaling $103 were charged off in the first six months of the year. In addition, during the first six months of 2018, the Company had recoveries on previously charged-off Commercial and Agriculture loans of $104, Commercial Real Estate – Owner Occupied loans of $130, Commercial Real Estate – Non-Owner Occupied loans of $21, Real Estate Mortgage loans of $93, Farm Real Estate of $3 and Consumer and Other loans of $33. For each loan category, as well as in total, the percentage of net charge-offs to loans was less than one percent. Nonperforming loans decreased by $1,716 since December 31, 2017, which was due to a decrease in loans on nonaccrual status of $1,734 and an increase in loans past due 90 days and accruing of $18. Each of these factors was considered by management as part of the examination of both the level and mix of the allowance by loan type as well as the overall level of the allowance.

Management specifically evaluates loans that are impaired for estimates of loss. To evaluate the adequacy of the allowance for loan losses to cover probable losses in the portfolio, management considers specific reserve allocations for identified portfolio loans, reserves for delinquencies and historical reserve 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.

Management analyzes each impaired Commercial and Commercial Real Estate loan relationship with a balance of $350 or larger, on an individual basis and designates a loan as impaired when it is in nonaccrual status or when an analysis of the borrower’s operating results and financial condition indicate that underlying cash flows are not adequate to meet its debt service requirements. In addition, loans held for sale 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. The allowance for loan losses as a percent of total loans was 1.09% at June 30, 2018 and 1.13% at December 31, 2017.

The available for sale security portfolio increased by $783, from $230,230 at December 31, 2017 to $231,013 at June 30, 2018. Management continually evaluates our securities portfolio in response to established asset/liability management objectives, changing market conditions that could affect profitability and the level of interest rate risk to which the Company is exposed. These evaluations may cause the Company to change the level of funds it deploys into investment securities and change the composition of its investment securities portfolio. As of June 30, 2018, the Company was in compliance with all pledging requirements.

Premises and equipment, net, have decreased $303 from December 31, 2017 to June 30, 2018. The decrease is the result of new purchases of $292, offset by depreciation of $595.  In addition, the Company sold certain premises and equipment held for sale during the first six months ended June 30, 2018.  Proceeds from the sale totaled $238, resulting in a gain on the sale of $33.

Bank owned life insurance (BOLI) increased $286 from December 31, 2017 to June 30, 2018. The difference is the result of increases in the cash surrender value of the underlying insurance policies.

Other assets increased $3,856 from December 31, 2017 to June 30, 2018.  The increase is the result of increases in prepaid expenses, fair value of swap assets and low income housing investments.

Total deposits as of June 30, 2018 and December 31, 2017 are as follows:

	June 30, 2018		December 31, 2017
Noninterest-bearing demand	$	391,785	$	361,964
Interest-bearing demand		194,708		183,680
Savings and money market		420,343		435,377
Time deposits		139,336		223,902
Total Deposits	$	1,146,172	$	1,204,923

Page 37

Civista Bancshares, Inc.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Form 10-Q

(Amounts in thousands, except share data)

Total deposits at June 30, 2018 decreased $58,751 from year-end 2017. Noninterest-bearing deposits increased $29,821 from year-end 2017, while interest-bearing deposits, including savings and time deposits, decreased $88,572 from December 31, 2017. The increase in noninterest-bearing deposits was primarily due to increases in cash balances remaining related to the Company’s participation in a tax refund processing program, which added noninterest-bearing deposits of $53,218. This increase is temporary as transactions are processed and is expected to return to levels more consistent with December 31, 2017 over the next quarter. The interest-bearing deposit decrease was mainly due to a decrease in brokered deposits offset by increases in interest-bearing demand and savings accounts. The year-to-date average balance of total deposits decreased $2,990 compared to the average balance of the same period in 2017 due to decreases in time deposits and demand deposit accounts, offset by increases in savings and money market accounts and interest-bearing demand accounts.

FHLB advances increased $84,300 from December 31, 2017 to June 30, 2018. The increase is due to an increase in overnight funds of $94,300. In addition, on February 15, 2018, an FHLB advance in the amount of $10,000 matured. This advance had terms of forty-two months with a fixed rate of 1.5%. The advance was not replaced. Securities sold under agreements to repurchase, which tend to fluctuate, have decreased $7,525 from December 31, 2017 to June 30, 2018.

Shareholders’ equity at June 30, 2018 was $189,848, or 12.3% of total assets, compared to $184,461, or 12.1% of total assets, at December 31, 2017. The increase in shareholders’ equity resulted primarily from net income of $10,003, a decrease in the Company’s pension liability, net of tax, of $226, a decrease in the fair value of securities available for sale, net of tax, of $3,080 and offset by dividends on preferred stock and common stock of $602 and $1,433, respectively. Total outstanding common shares at June 30, 2018 were 10,788,892. Total outstanding common shares at December 31, 2017 were 10,198,475. The increase in common shares outstanding is the result of the conversion of 4,440 shares of the Company’s previously issued preferred shares into 567,703 common shares and the grant of 16,510 restricted common shares to certain officers under the Company’s 2014 Incentive Plan.  In addition, 6,204 common shares were issued to Civista directors as a retainer payment for service on the Civista Board of Directors.

Results of Operations

Six Months Ended June 30, 2018 and 2017

The Company had net income of $10,003 for the six months ended June 30, 2018, an increase of $1,772 from net income of $8,231 for the same six months of 2017.  Basic earnings per common share were $0.91 for the period ended June 30, 2018, compared to $0.79 for the same period in 2017.  Diluted earnings per common share were $0.79 for the period ended June 30, 2018, compared to $0.68 for the same period in 2017. The primary reasons for the changes in net income are explained below.

Net interest income for the six months ended June 30, 2018 was $29,538, an increase of $3,277 from $26,261 in the same six months of 2017.  Total interest income for the six months ended June 30, 2018 was $32,084, an increase of $4,164 from $27,920 in the same six months of 2017. Average earning assets increased 3.3% during the six months ended June 30, 2018 as compared to the same period in 2017. Average loans and non-taxable securities for the first six months of 2018 increased 6.8% and 21.8%, respectively, compared to the first six months of last year.  The increases were offset by a decrease in interest-bearing deposits in other banks.  Interest-bearing deposits in other banks decreased mainly due to our tax refund processing program.  The timing of cash inflows and outflows leads to large, but temporary, fluctuations in cash on deposit.  The yield on the loan portfolio increased 34 basis points for the first six months of 2018 compared to the first six months of last year.  The yield on earning assets increased 39 basis points for the first six months of 2018 compared to the first six months of last year.  Total interest expense for the six months ended June 30, 2018 was $2,546, an increase of $887 from $1,659 in the same six months of 2017.  Average time deposits for the first six months of 2018 decreased 6.7%, while average demand and savings accounts increased 6.8% compared to the first six months of 2017.  Interest expense on demand and savings accounts, time deposits, FHLB borrowings and trust preferred securities increased $249, $136, $376 and $127, respectively, in the first six months of 2018 compared to the same period in 2017.  The interest rate paid on FHLB borrowings during the first six months of 2018 increased 56 basis points as compared to the same period in 2017, while the average balance increased 68.2%.  The interest rate paid on trust preferred securities during the first six months of 2018 increased 87 basis points as compared to the same period in 2017.  The Company’s net interest margin for the six months ended June 30, 2018 was 4.13% compared to 3.86% for the period ended June 30, 2017.  

Page 38

Civista Bancshares, Inc.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Form 10-Q

(Amounts in thousands, except share data)

The following table presents the condensed average balance sheets for the six months ended June 30, 2018 and 2017.  The daily average loan amounts outstanding are net of unearned income and include loans held for sale and nonaccrual loans.  The average balance of securities is computed using the carrying value of securities.Rates are annualized and taxable equivalent yields are computed using a 21% tax rate for tax-exempt interest income in 2018 and a 35% tax rate for tax-exempt interest income in 2017. The average yield has been computed using the historical amortized cost average balance for available-for-sale securities.

	Six Months Ended June 30,
	2018								2017
Assets:	Average balance			Interest		Yield/ rate*			Average balance			Interest		Yield/ rate*
Interest-earning assets:
Loans, including fees	$	1,153,230		$	27,783		4.86	%	$	1,080,307		$	24,189		4.52	%
Taxable securities		143,229			2,026		2.84	%		141,253			1,787		2.58	%
Tax-exempt securities		101,673			1,764		4.49	%		83,506			1,496		5.63	%
Interest-bearing deposits in other banks		67,108			511		1.54	%		112,695			448		0.80	%
Total interest-earning assets	$	1,465,240		$	32,084		4.48	%	$	1,417,761		$	27,920		4.09	%
Noninterest-earning assets:
Cash and due from financial institutions		64,211								68,144
Premises and equipment, net		17,641								18,125
Accrued interest receivable		4,860								4,439
Intangible assets		28,359								28,753
Other assets		12,968								10,069
Bank owned life insurance		25,247								24,675
Less allowance for loan losses		(13,037	)							(13,242	)
Total Assets	$	1,605,489							$	1,558,724
Liabilities and Shareholders Equity:
Interest-bearing liabilities:
Demand and savings	$	615,940		$	502		0.16	%	$	576,936		$	253		0.09	%
Time		163,878			775		0.95	%		175,614			639		0.73	%
FHLB		71,727			634		1.78	%		42,634			258		1.22	%
Subordinated debentures		29,427			626		4.29	%		29,427			499		3.42	%
Repurchase Agreements		17,467			9		0.10	%		20,767			10		0.10	%
Total interest-bearing liabilities	$	898,439		$	2,546		0.57	%	$	845,378		$	1,659		0.40	%
Noninterest-bearing deposits		506,002								536,260
Other liabilities		14,656								12,912
Shareholders’ Equity		186,392								164,174
Total Liabilities and Shareholders’ Equity	$	1,605,489							$	1,558,724
Net interest income and interest rate spread				$	29,538		3.91	%				$	26,261		3.69	%
Net interest margin							4.13	%							3.86	%

*—All yields and costs are presented on an annualized basis

Page 39

Civista Bancshares, Inc.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Form 10-Q

(Amounts in thousands, except share data)

Net interest income may also be analyzed by comparing the volume and rate components of interest income and interest expense.  The following table provides an analysis of the changes in interest income and expense between the six months ended June 30, 2018 and 2017.  The table is presented on a fully tax-equivalent basis.

	Increase (decrease) due to:
	Volume (1)			Rate (1)			Net
	(Dollars in thousands)
Interest income:
Loans, including fees	$	1,691		$	1,903		$	3,594
Taxable securities		55			184			239
Tax-exempt securities		338			(70	)		268
Interest-bearing deposits in other banks		(232	)		295			63
Total interest income	$	1,852		$	2,312		$	4,164
Interest expense:
Demand and savings	$	18		$	231		$	249
Time		(45	)		181			136
FHLB		224			152			376
Subordinated debentures		—			127			127
Repurchase agreements		(2	)		1			(1	)
Total interest expense	$	195		$	692		$	887
Net interest income	$	1,657		$	1,620		$	3,277

(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.

The Company provides for loan losses through regular provisions to the allowance for loan losses.  No provision for loan losses was provided during the six months ended June 30, 2018 and June 30, 2017.

Noninterest income for the six-month periods ended June 30, 2018 and 2017 are as follows:

	Six months ended June 30,
	2018		2017
Service charges	$	2,493	$	2,432
Net gain on sale of securities		6		—
Net gain on equity securities		75		—
Net gain on sale of loans		807		735
ATM/Interchange fees		1,142		1,076
Wealth management fees		1,688		1,445
Bank owned life insurance		286		287
Tax refund processing fees		2,750		2,750
Other		759		512
Total noninterest income	$	10,006	$	9,237

Noninterest income for the six months ended June 30, 2018 was $10,006, an increase of $769 or 8.3% from $9,237 for the same period of 2017.  The primary reasons for the increase follow.

Service charge fee income for the period ended June 30, 2018 was $2,493, up $61 or 2.5% over the same period of 2017.  The increase is primarily due to a change in the business account earnings credits, along with an increase on overdraft charges.

Gain on sale of loans increased $72 during the first six months of 2018 compared to the same period of 2017.  The volume of loans sold during the first six months of 2018 was $37,593, up $6,027 or 19.1% as compared to the same period in 2017.  

Page 40

Civista Bancshares, Inc.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Form 10-Q

(Amounts in thousands, except share data)

Wealth management fee income is comprised of fees earned from the management and administration of trusts and other customer assets.  These fees are largely based upon the market value of the assets that we manage and the fee rate charged to customers.  Wealth management fee income increased $243 or 16.8% during the first six months of 2018 compared to the same period in 2017.  The increase is mainly related to increases in assets under management and market conditions compared to the same period in 2017.

The Company processes state and federal income tax refund payments for customers of third-party income tax preparation vendors.  The third-party vendors pay us a fee for processing the payments.  Tax refund processing fees were $2,750 during the first six months of 2018 and 2017.  This fee income is seasonal in nature, the majority of which is received in the first quarter of the year.

Other income increased $247 during the first six months of 2018 compared to the same period of 2017. The increase is mainly due to increases in swap related income and deluxe income during the first six months of 2018 as compared to the same period in 2017.

Noninterest expense for the six-month periods ended June 30, 2018 and 2017 are as follows:

	Six months ended June 30,
	2018		2017
Compensation expense	$	14,759	$	13,925
Net occupancy expense		1,623		1,312
Equipment expense		698		747
Contracted data processing		3,087		818
FDIC assessment		267		298
State franchise tax		681		512
Professional services		2,035		1,184
Amortization of intangible assets		59		325
ATM expense		426		468
Marketing		638		528
Other		3,860		3,934
Total noninterest expense	$	28,133	$	24,051

Noninterest expense for the six months ended June 30, 2018 was $28,133, an increase of $4,082, from $24,051 reported for the same period of 2017.  The primary reasons for the increase follow.  

Compensation expenses were $14,759, up $834 or 6.0% as compared to the same period of 2017. These increases are mainly due to an increase in payroll and payroll related expenses due to annual pay increases. In addition, commission based costs and employee insurance costs increased, as compared to the same period of 2017.

Net occupancy expense increased $311, or 23.7% from the same period of 2017.  The year-over-year increase was attributable to an increase in miscellaneous building repairs, increased small equipment purchases, increased janitorial services, ground maintenance and utilities costs due to the extended cold weather in our region during the first part of the year.

Contracted data processing expenses increased $2,269, or 277.4% from the same period of 2017. The increase is due to merger expenses related to the conversion of core system data to the Company’s core system in preparation of the Company’s merger with UCB anticipated to occur during the third quarter of 2018.

FDIC assessments were $267, down $31 or 10.4% compared to the same period in 2017.  The year-over-year decrease is the result of lower assessment rates for 2018.  

State franchise taxes were $681, up $169 or 33.0% compared to the same period in 2017.  The year-over-year increase was attributable to an increase in equity capital.  The Ohio Financial Institutions tax is based on equity capital.

Professional services costs increased $851, or 71.9% from the same period of 2017. The year-over-year increase was attributable to increased examination fees, increased facilities management costs, increased professional services costs to analyze workflow systems and recommend process improvements and legal and consulting expenses related to the contemplated merger with UCB.

Page 41

Civista Bancshares, Inc.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Form 10-Q

(Amounts in thousands, except share data)

Amortization expense decreased $266, or 81.9% from the same period of 2017, as a result of scheduled amortization of intangible assets associated with mergers.

ATM costs were $426, down $42 or 9.0% compared to the same period in 2017. The decrease is primarily due to increased expenses paid in 2017 relating to the Company’s debit card program conversion as compared to the same period in 2018.

Marketing costs were $638, up $110 or 20.8% compared to the same period in 2017. The increase is due to a general increase in marketing expenses and higher promotional points and benefits paid in the first six months of 2018 compared to the same period of 2017.

Income tax expense for the six months ended June 30, 2018 totaled $1,408, down $1,808 compared to the same period in 2017.  The effective tax rates for the six-month periods ended June 30, 2018 and June 30, 2017 were 12.3% and 28.1%, respectively.  The Tax Cuts and Jobs Act, enacted on December 22, 2017, lowered the federal corporate income tax rate from 35% to 21% effective January 1, 2018.  The difference between the statutory federal income tax rate and the Company’s effective tax rate is the permanent tax differences, primarily consisting of tax-exempt interest income from municipal investments and loans, low income housing tax credits and bank owned life insurance income.

Three Months Ended June 30, 2018 and 2017

The Company had net income of $3,014 for the three months ended June 30, 2018, a decrease of $582 from net income of $3,596 for the same three months of 2017. Basic earnings per common share were $0.26 for the quarter ended June 30, 2018, compared to $0.32 for the same period in 2017. Diluted earnings per common share were $0.24 for the quarter ended June 30, 2018, compared to $0.29 for the same period in 2017. The primary reasons for the changes in net income are explained below.

Net interest income for the three months ended June 30, 2018 was $14,766, an increase of $1,399 from $13,367 in the same three months of 2017. Total interest income for the three months ended June 30, 2018 was $16,160, an increase of $1,932 from $14,228 in the same three months of 2017. Average earning assets increased 4.4% during the quarter ended June 30, 2018 as compared to the same period in 2017. Average loans and   tax-exempt securities for the second quarter of 2018 increased 6.1% and 15.6%, respectively, compared to the second quarter of last year. The increases were offset by decreases in taxable securities and interest-bearing deposits in other banks. The yield on the loan portfolio increased 34 basis points for the second quarter of 2018 compared to the second quarter of last year. The yield on earning assets increased 30 basis points for the second quarter of 2018 compared to the second quarter of last year. Total interest expense for the three months ended June 30, 2018 was $1,394, an increase of $533 from $861 in the same three months of 2017. Interest expense on demand and savings accounts increased $120 during the second quarter of 2018 compared to the same period in 2017. Average demand and savings accounts increased 6.9% while time deposits decreased 12.9% for the second quarter of 2018 compared to the same period in 2017. Interest expense on FHLB borrowings and trust preferred securities increased $312 and $80, respectively, in the second quarter of 2018 compared to the same period in 2017. The interest rate paid on FHLB borrowings during the second quarter of 2018 increased 67 basis points as compared to the same period in 2017, while the average balance increased 82.6%. The interest rate paid on trust preferred securities during the second quarter of 2018 increased 109 basis points as compared to the same period in 2017. The Company’s net interest margin for the three months ended June 30, 2018 and 2017 was 4.21% and 4.05%, respectively.

Page 42

Civista Bancshares, Inc.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Form 10-Q

(Amounts in thousands, except share data)

The following table presents the condensed average balance sheets for the three months ended June 30, 2018 and 2017. The daily average loan amounts outstanding are net of unearned income and include loans held for sale and nonaccrual loans. The average balance of securities is computed using the carrying value of securities. Rates are annualized and taxable equivalent yields are computed using a 21% tax rate for tax-exempt interest income in 2018 and a 35% tax rate for tax-exempt interest income in 2017. The average yield has been computed using the historical amortized cost average balance for available-for-sale securities.

	Three Months Ended June 30,
	2018								2017
Assets:	Average balance			Interest		Yield/rate*			Average balance			Interest		Yield/rate*
Interest-earning assets:
Loans, including fees	$	1,158,956		$	14,144		4.90	%	$	1,092,574		$	12,412		4.56	%
Taxable securities		145,435			1,040		2.85	%		150,250			940		2.54	%
Tax-exempt securities		101,866			886		4.46	%		88,150			784		5.58	%
Interest-bearing deposits in other banks		21,696			90		1.66	%		37,413			92		0.99	%
Total interest-earning assets	$	1,427,953		$	16,160		4.60	%	$	1,368,387		$	14,228		4.30	%
Noninterest-earning assets:
Cash and due from financial institutions		36,501								38,150
Premises and equipment, net		17,549								18,127
Accrued interest receivable		5,270								4,939
Intangible assets		28,351								28,680
Other assets		12,781								9,815
Bank owned life insurance		25,317								24,746
Less allowance for loan losses		(12,935	)							(13,173	)
Total Assets	$	1,540,787							$	1,479,671
Liabilities and Shareholders Equity:
Interest-bearing liabilities:
Demand and savings	$	615,667		$	250		0.16	%	$	576,072		$	130		0.09	%
Time		140,622			320		0.91	%		161,398			298		0.74	%
FHLB advance		103,460			482		1.87	%		56,672			170		1.20	%
Subordinated debentures		29,427			338		4.61	%		29,427			258		3.52	%
Repurchase Agreements		16,546			4		0.10	%		17,985			5		0.11	%
Total interest-bearing liabilities	$	905,722		$	1,394		0.62	%	$	841,554		$	861		0.41	%
Noninterest-bearing deposits		434,126								449,170
Other liabilities		12,609								12,662
Shareholders’ Equity		188,330								176,285
Total Liabilities and Shareholders’ Equity	$	1,540,787							$	1,479,671
Net interest income and interest rate spread				$	14,766		3.98	%				$	13,367		3.89	%
Net interest margin							4.21	%							4.05	%

*—All yields and costs are presented on an annualized basis

Page 43

Civista Bancshares, Inc.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Form 10-Q

(Amounts in thousands, except share data)

Net interest income may also be analyzed by comparing the volume and rate components of interest income and interest expense. The following table provides an analysis of the changes in interest income and expense between the three months ended June 30, 2018 and 2017. The table is presented on a fully tax-equivalent basis.

	Increase (decrease) due to:
	Volume (1)			Rate (1)			Net
	(Dollars in thousands)
Interest income:
Loans, including fees	$	779		$	953		$	1,732
Taxable securities		(12	)		112			100
Tax-exempt securities		138			(36	)		102
Interest-bearing deposits in other banks		(49	)		47			(2	)
Total interest income	$	856		$	1,076		$	1,932
Interest expense:
Demand and savings	$	10		$	110		$	120
Time		(42	)		64			22
FHLB advance		187			125			312
Subordinated debentures		—			80			80
Repurchase agreements		—			(1	)		(1	)
Total interest expense	$	155		$	378		$	533
Net interest income	$	701		$	698		$	1,399

(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.

The Company provides for loan losses through regular provisions to the allowance for loan losses. During the quarters ended June 30, 2018 and June 30, 2017, no provision for loan losses was provided.

Noninterest income for the three-month periods ended June 30, 2018 and 2017 are as follows:

	Three months ended June 30,
	2018		2017
Service charges	$	1,359	$	1,387
Net gain on sale of securities		6		—
Net gain on equity securities		35		—
Net gain on sale of loans		474		478
ATM/Interchange fees		588		567
Wealth management fees		836		738
Bank owned life insurance		144		143
Tax refund processing fees		550		550
Other		398		238
Total noninterest income	$	4,390	$	4,101

Noninterest income for the three months ended June 30, 2018 was $4,390, an increase of $289 or 7.0% from $4,101 for the same period of 2017. The primary reasons for the increase follow.

Wealth management fee income is comprised of fees earned from the management and administration of trusts and other customer assets. These fees are largely based upon the market value of the assets that we manage and the fee rate charged to customers. Wealth management fee income increased $98 or 13.3% during the second quarter of 2018 compared to the same period in 2017. The increase is mainly related to increases in assets under management and market conditions compared to the same period in 2017.

The Company processes state and federal income tax refund payments for customers of third-party income tax preparation vendors.  The third-party vendors pay us a fee for processing the payments.  Tax refund processing fees were $550 for the second quarter of 2018 and 2017.  This fee income is seasonal in nature, the majority of which is received in the first quarter of the year.

Page 44

Civista Bancshares, Inc.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Form 10-Q

(Amounts in thousands, except share data)

Other income increased $160 during the second quarter of 2018 compared to the same period of 2017. The increase is mainly due to increases in swap related income and deluxe income during the second quarter of 2018 as compared to the same period in 2017.

Noninterest expense for the three-month periods ended June 30, 2018 and 2017 are as follows:

	Three months ended June 30,
	2018		2017
Compensation expense	$	7,385	$	6,943
Net occupancy expense		862		655
Equipment expense		324		418
Contracted data processing		2,739		429
FDIC assessment		116		133
State franchise tax		363		255
Professional services		1,483		733
Amortization of intangible assets		26		158
ATM expense		208		214
Marketing		320		276
Other operating expenses		2,102		2,335
Total noninterest expense	$	15,928	$	12,549

Noninterest expense for the three months ended June 30, 2018 was $15,928, an increase of $3,379, or 26.9%, from $12,549 reported for the same period of 2017. The primary reasons for the increase follow.

Compensation expenses were $7,385, up $442 or 6.4% as compared to the same period of 2017. These increases are mainly due to an increase in payroll and payroll related expenses due to annual pay increases. In addition, commission based costs, stock-based compensation and employee insurance costs increased, as compared to the same period of 2017.

Net occupancy and equipment expense increased $113, or 10.5% from the same period of 2017.  The quarter-over-quarter increase was attributable to an increase in miscellaneous building repairs, increased small equipment purchases, increased janitorial services and increased ground maintenance due to the extended cold weather we were experiencing in our region.  

Contracted data processing expenses were $2,739, up $2,310 or 538.5% compared to the same period on 2017.  The quarter-over-quarter increase was attributable to expenses incurred in preparation for the Company’s contemplated merger with UCB.

FDIC assessments were $116, down $17 or 12.8% compared to the same period in 2017.  The quarter-over-quarter decrease is the result of lower assessment rates for 2018.  

State franchise taxes were $363, up $108 or 42.4% compared to the same period in 2017.  The quarter-over-quarter increase was attributable to an increase in equity capital.  The Ohio Financial Institutions tax is based on equity capital.

Professional services costs increased $750, or 102.3% from the same period of 2017. The quarter-over-quarter increase was attributable to increased legal and consulting expenses related to the contemplated merger with UCB.

Amortization expense decreased $132, or 83.5% from the same period of 2017, as a result of scheduled amortization of intangible assets associated with mergers.

Marketing costs were $320, up $44 or 15.9% compared to the same period in 2017. The increase is due to a general increase in marketing expenses and higher promotional points and benefits paid in the second quarter of 2018 compared to the same period of 2017.

Other operating expenses were $2,102, down $233 or 10.0% compared to the same period in 2017.  The decrease is due to a general decrease in other operating expenses during the second quarter of 2018 compared to the same period of 2017.

Page 45

Civista Bancshares, Inc.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Form 10-Q

(Amounts in thousands, except share data)

Income tax expense for the three months ended June 30, 2018 totaled $214, down $1,109 compared to the same period in 2017. The effective tax rates for the three-month periods ended June 30, 2018 and 2017 were 6.6% and 26.9%, respectively. The Tax Cuts and Jobs Act, enacted on December 22, 2017, lowered the federal corporate income tax rate from 35% to 21% effective January 1, 2018.  The difference between the statutory federal income tax rate and the Company’s effective tax rate is the permanent tax differences, primarily consisting of tax-exempt interest income from municipal investments and loans, low income housing tax credits and bank owned life insurance income.

Capital Resources

Shareholders’ equity totaled $189,848 at June 30, 2018 compared to $184,461 at December 31, 2017. The increase in shareholders’ equity was positively impacted by net income of $10,003, a $226 net decrease in the Company’s pension liability and a decrease in the fair value of securities available for sale, net of tax, of $3,080, which was offset by dividends on preferred stock and common stock of $602 and $1,433, respectively.

All of the Company’s capital ratios exceeded the regulatory minimum guidelines as of June 30, 2018 and December 31, 2017 as identified in the following table:

	Total Risk Based Capital			Tier I Risk Based Capital			CET1 Risk Based Capital			Leverage Ratio
Company Ratios—June 30, 2018		16.7	%		15.7	%		12.3	%		13.0	%
Company Ratios—December 31, 2017		16.6	%		15.5	%		11.6	%		12.7	%
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	%

The Company paid a cash dividend of $0.07 per common share on February 1, 2018 and on May 1, 2018. In 2017, the Company paid a cash dividend of $0.06 per common share on February 1, 2017 and on May 1, 2017. The Company also paid a 6.50% cash dividend on its Series B preferred shares in the amount of approximately $303 on March 15, 2018 and approximately $299 on June 15, 2018. In 2017, the Company paid a 6.50% cash dividend on its Series B preferred shares in the amount of approximately $319 on March 15, 2017 and approximately $308 on June 15, 2017.

Liquidity

The Company maintains a conservative liquidity position. All securities are classified as available for sale. Securities, with maturities of one year or less, totaled $13,462, or 5.8% of the total security portfolio at June 30, 2018. The available for sale portfolio helps to provide the Company with the ability to meet its funding needs. The Condensed Consolidated Statements of Cash Flows (Unaudited) contained in the consolidated financial statements detail the Company’s cash flows from operating activities resulting from net earnings.

As reported in the Condensed Consolidated Statements of Cash Flows (Unaudited), our cash flows are classified for financial reporting purposes as operating, investing or financing cash flows. Net cash provided by operating activities was $5,324 and $8,223 for the six months ended June 30, 2018 and 2017, respectively. These amounts differ from net income due to a variety of cash receipts and disbursements that did not affect net income for the respective periods. Net cash used for investing activities was $20,676 and $78,871 for the six months ended June 30, 2018 and 2017, respectively, principally reflecting our loan and investment security activities. Cash provided by deposits, borrowings and net proceeds from our common equity offering comprised most of our financing activities, which resulted in net cash provided of $15,989 and $73,468 for the six months ended June 30, 2018 and 2017, respectively.

Future loan demand of Civista may 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. Through its correspondent banks, Civista maintains federal funds borrowing lines totaling $42,500. As of June 30, 2018, Civista had total credit availability with the FHLB of $369,955 with standby letters of credit totaling $20,000 and a remaining borrowing capacity of approximately $193,755. In addition, Civista Bancshares, Inc. maintains a credit line totaling $7,500.

Page 46

Civista Bancshares, Inc.

Quantitative and Qualitative Disclosures About Market Risk

Form 10-Q

(Amounts in thousands, except share data)

ITEM 3. 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 Company, 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 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; matching repricing periods for new assets and liabilities, for example, by shortening terms of new loans or securities; and hedging existing assets, liabilities, or anticipated transactions. An institution might also invest in more complex financial instruments intended to hedge or otherwise change interest-rate risk. Interest rate swaps, futures contracts, options on futures, and other such derivative financial instruments often are used for this purpose. Because these instruments are sensitive to interest rate changes, they require management expertise to be effective. The Company has not purchased derivative financial instruments in the past and does not currently intend to purchase such instruments in the near future. 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. 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. FHLB advances and wholesale borrowings may also be used as important sources of liquidity for the Company.

Page 47

Civista Bancshares, Inc.

Quantitative and Qualitative Disclosures About Market Risk

Form 10-Q

(Amounts in thousands, except share data)

The following table provides information about the Company’s financial instruments that were sensitive to changes in interest rates as of December 31, 2017 and June 30, 2018, based on certain prepayment and account decay assumptions that management believes are reasonable. The table shows the changes in the Company’s net portfolio value (in amount and percent) that would result from hypothetical interest rate increases of 200 basis points and 100 basis points and an interest rate decrease of 100 basis points at June 30, 2018 and December 31, 2017.

The Company had derivative financial instruments as of December 31, 2017 and June 30, 2018. The changes in fair value of the assets and liabilities of the underlying contracts offset each other. 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.

Net Portfolio Value
	June 30, 2018								December 31, 2017
Change in Rates	Dollar Amount		Dollar Change			Percent Change			Dollar Amount		Dollar Change			Percent Change
+200bp		293,164		28,373			11	%		270,928		33,923			14	%
+100bp		285,779		20,988			8	%		261,071		24,066			10	%
Base		264,791		—			—			237,005		—			—
-100bp		245,637		(19,154	)		-7	%		223,526		(13,479	)		-6	%

The change in net portfolio value from December 31, 2017 to June 30, 2018, can be attributed to two factors.  While the yield curve has risen and flattened slightly from the end of the year, both the volume and mix of assets and funding sources has changed.  The volume of loans has increased, while the volume of liabilities has decreased, compared to the end of the year.  This leads to an increase in the base net portfolio value.  The asset mix remained fairly constant, while the funding mix has shifted from CDs to borrowed money and deposits.  Combined, this led to a small increase in volatility.  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 slight increase in the market value of liabilities, compared to a slight decrease in the market value of assets.  Accordingly, we see an increase in the net portfolio value, although the increase is smaller relative to the end of 2017.  However, a downward change in rates would lead to a decrease in the net portfolio value as the market value of liabilities would increase more quickly than the market value of assets.  Combined with the change in liability mix, we see a slightly larger change in 2018, compared to 2017.

Page 48

Civista Bancshares, Inc.

Controls and Procedures

Form 10-Q

(Amounts in thousands, except share data)

ITEM 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our principal executive and our principal financial officers, we evaluated the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of the end of the period covered by this Quarterly Report on Form 10-Q. Based upon that evaluation, our principal executive and our principal financial officers concluded that our disclosure controls and procedures as of June 30, 2018, were effective.

Changes in Internal Control over Financial Reporting

There have not been any changes in the Company’s internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) that occurred during the Company’s most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Page 49

Civista Bancshares, Inc.

Other Information

Form 10-Q

Part II—Other Information

Item 1. Legal Proceedings

On June 21, 2018, a purported stockholder of United Community, filed a putative class action lawsuit in the Superior Court for the State of Indiana, Dearborn County, against United Community, the members of United Community’s Board of Directors, United Community Bank, Civista and Civista Bank on behalf of all of United Community’s public stockholders. The lawsuit alleges that United Community’s proxy statement for the special meeting of United Community stockholders to be held on July 24, 2018 to vote on the Merger omitted certain material information, which rendered the proxy statement false and misleading, and that United Community’s directors breached their fiduciary duties in the sale process.  The lawsuit also alleges that the other corporate defendants, including Civista and Civista Bank, aided and abetted in the alleged breaches of fiduciary duties. The relief sought in the lawsuit includes preliminary and permanent injunction against the consummation of the Merger, rescission or rescissory damages if the Merger is completed, costs and attorney’s fees. The defendants believe that the claims are without merit and intend to defend against the suit vigorously. However, at this time, it is not possible to predict the outcome of the lawsuit or the impact on United Community, Civista or the contemplated Merger.

Item 1A. Risk Factors

There were no material changes during the current period to the risk factors disclosed 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, 2017, as supplemented by the risk factors disclosed in “Item 1A. Risk Factors” of Part II of the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2018.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None

Item 3. Defaults Upon Senior Securities

None

Item 4. Mine Safety Disclosures

Not applicable

Item 5. Other Information

None

Page 50

Civista Bancshares, Inc.

Other Information

Form 10-Q

Item 6. Exhibits

Exhibit	Description	Location
2.1	Agreement and Plan of Merger, dated March 11, 2018 by and between Civista Bancshares, Inc., Civista Bank, United Community Bancorp and United Community Bank.	Filed as Exhibit 2.1 to Civista Bancshares, Inc.’s Current Report on Form 8-K dated and filed on March 12, 2018 and incorporated herein by reference. (File No. 001-36192)
3.1	Amended and Restated Articles of Incorporation of Civista Bancshares, Inc., as filed with the Ohio Secretary of State on December 4, 2015.	Filed as Exhibit 3.1 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)
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)
10.1	Third Amendment to Supplemental Nonqualified Executive Retirement Plan	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 the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2018, formatted in XBRL (eXtensible Business Reporting Language) pursuant to Rule 405 of Regulation S-T: (i) Consolidated Balance Sheets (Unaudited) as of June 30, 2018 and December 31, 2017; (ii) Consolidated Statements of Income (Unaudited) for the three and six months ended June 30, 2018 and 2017; (iii) Consolidated Statements of Comprehensive Income (Unaudited) for the three and six months ended June 30, 2018 and 2017; (iv) Condensed Consolidated Statement of Shareholders’ Equity (Unaudited) for the six months ended June 30, 2018; (v)  Condensed Consolidated Statement of Cash Flows (Unaudited) for the six months ended June 30, 2018 and 2017; and (vi) Notes to Interim Consolidated Financial Statements (Unaudited).	Included herewith

Page 51

Civista Bancshares, Inc.

Signatures

Form 10-Q

Pursuant to the requirements 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.

Civista Bancshares, Inc.

/s/ Dennis G. Shaffer	August 8, 2018
Dennis G. Shaffer	Date
President, Chief Executive Officer

/s/ Todd A. Michel	August 8, 2018
Todd A. Michel	Date
Senior Vice President, Controller

Page 52

EX-10.1

Exhibit 10.1

2018 AMENDMENT

TO

CIVISTA BANCSHARES, INC. SUPPLEMENTAL NONQUALIFIED EXECUTIVE RETIREMENT PLAN

WHEREAS, Civista Bancshares, Inc. (the “Company”) maintains the Civista Bancshares, Inc. Supplemental Nonqualified Executive Retirement Plan, as (the “Plan”); and

WHEREAS, Article VIII of the Plan permits the Company to amend the Plan at any time by action of the Company’s Board of Directors (the “Board”); and

WHEREAS, the Company desires to amend the Plan to comply with the Department of Labor regulations related to disability claims procedures;

NOW, THEREFORE, effective as of April 1, 2018, and subject to Board approval, the Plan is hereby amended as follows:

1.  Section 9.5 is deleted in its entirety and replaced with the following:

“9.5Claims and Review Procedures

9.5.1Filing a Claim.  Any controversy or claim arising out of or relating to the Plan shall be filed in writing with the Committee which shall make all determinations concerning such claim.  Any claim filed with the Committee and any decision by the Committee denying such claim shall be in writing and shall be delivered to the Participant or Beneficiary filing the claim (the “Claimant”).

A. In General.  Notice of a denial of benefits (other than Disability benefits) will be provided within ninety (90) days of the Committee’s receipt of the Claimant’s claim for benefits.  If the Committee determines that it needs additional time to review the claim, the Committee will provide the Claimant with a notice of the extension before the end of the initial ninety (90) day period.  The extension will not be more than ninety (90) days from the end of the initial ninety (90) day period and the notice of extension will explain the special circumstances that require the extension and the date by which the Committee expects to make a decision.

B. Disability Benefits.  Notice of denial of Disability benefits will be provided within forty-five (45) days of the Committee’s receipt of the Claimant’s claim for Disability benefits.  If the Committee determines that it needs additional time to review the Disability claim, the Committee will provide the Claimant with a notice of the extension before the end of the initial forty-five (45) day period.  The extension will not be more than thirty (30) days from the end of the initial forty-five (45) day period.  If the Committee determines that a

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decision cannot be made within the first extension period due to matters beyond the control of the Committee, the time period for making a determination may be further extended for an additional thirty (30) days.  If such an additional extension is necessary, the Committee shall notify the Claimant prior to the expiration of the initial thirty (30) day extension.  Any notice of extension shall indicate the circumstances necessitating the extension of time, the date by, which the Committee expects to furnish a notice of decision, the specific standards on which such entitlement to a benefit is based, the unresolved issues that prevent a decision on the claim and any additional information needed to resolve those issues.  A Claimant will be provided a minimum of forty-five (45) days to submit any necessary additional information to the Committee.  In the event that a thirty (30) day extension is necessary due to a Claimant’s failure to submit information necessary to decide a claim, the period for furnishing a notice of decision shall be tolled from the date on which the notice of the extension is sent to the Claimant until the earlier of the date the Claimant responds to the request for additional information or the response deadline.

C. Contents of Notice Generally.  If a claim for benefits is completely or partially denied, notice of such denial shall be in writing and shall set forth the reasons for denial in plain language.  The notice shall (i) describe the specific reason or reasons for the denial; (ii) cite the pertinent provisions of the Plan document and (iii) explain, where appropriate, how the Claimant can perfect the claim, including a description of any additional material or information necessary to complete the claim and why such material or information is necessary.  The claim denial also shall include an explanation of the claims review procedures and the time limits applicable to such procedures, including a statement of the Claimant’s right to bring a civil action under Section 502(a) of ERISA following an adverse decision on review.

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D. Contents of Notice for Disability Claims.  In the case of a complete or partial denial of a Disability benefit claim, the notice shall include the following:

(i) A discussion of the decision, including an explanation of the basis for disagreeing with or not following: (1) the views, that the Claimant presents to the individuals reviewing the claim, of health care professionals treating the Claimant and vocational professionals who evaluated the Claimant; (2) the views of medical or vocational experts whose advice was obtained on behalf of the those reviewing the claim, without regard to whether the advice was relied upon in making the denial; and (3) a disability determination made by the Social Security Administration that the Claimant presented to those reviewing the claim;

(ii) If the denial is based on a medical necessity or experimental treatment or similar exclusion or limit, either an explanation of the scientific or clinical judgment for the determination, applying the terms of this Plan to the Claimant’s medical circumstances, or a statement that such explanation will be provided free of charge upon request;

(iii) Either the specific internal rules, guidelines, protocols, standards or other similar criteria of this Plan relied upon in making the denial or, alternatively, a statement that such rules, guidelines, protocols, standards or other similar criteria of this Plan do not exist; and

(iv) A statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to and copies of all documents, records, and other information relevant to the claim.  Whether a document, record, or other information is relevant to a claim for benefits is determined by reference to Section 2560.503-1(m)(8) of the Department of Labor Regulations.

The notice will be provided in a culturally and linguistically appropriate manner (as described in Section 2560.503-1(o) of the Department of Labor Regulations).

9.5.2Appeal of Denied Claims.  A Claimant whose claim has been completely or partially denied shall be entitled to appeal the claim denial by filing a written appeal with a committee designated by the Company or the Committee to hear such appeals (the “Appeals Committee”).  A Claimant who timely requests a review of the denied claim (or his or her authorized representative) may review, upon request and free of charge, copies of all documents, records and other

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information relevant to the denial and may submit written comments, documents, records and other information relevant to the claim to the Appeals Committee.  All written comments, documents, records, and other information shall be considered “relevant” if the information (i) was relied upon in making a benefits determination, (ii) was submitted, considered or generated in the course of making a benefits decision regardless of whether it was relied upon to make the decision, or (iii) demonstrates compliance with administrative processes and safeguards established for making benefit decisions.  The Appeals Committee may, in its sole discretion and if it deems appropriate or necessary, decide to hold a hearing with respect to the claim appeal.

A.   In General.  Appeal of a denied benefits claim (other than a Disability benefits claim) must be filed in writing with the Appeals Committee no later than sixty (60) days after receipt of the written notification of such claim denial.  The Appeals Committee shall make its decision regarding the merits of the denied claim within sixty (60) days following receipt of the appeal (or within one hundred and twenty (120) days after such receipt, in a case where there are special circumstances requiring extension of time for reviewing the appealed claim).  If an extension of time for reviewing the appeal is required because of special circumstances, written notice of the extension shall be furnished to the Claimant prior to the commencement of the extension.  The notice will indicate the special circumstances requiring the extension of time and the date by which the Appeals Committee expects to render the determination on review.  The review will take into account comments, documents, records and other information submitted by the Claimant relating to the claim without regard to whether such information was submitted or considered in the initial benefit determination.

B. Disability Benefits.  Appeal of a denied Disability benefits claim must be filed in writing with the Appeals Committee no later than one hundred eighty (180) days after receipt of the written notification of such claim denial.  The review shall be conducted by the Appeals Committee (exclusive of the person who made the initial adverse decision or such person’s subordinate).  In reviewing the appeal, the Appeals Committee shall (i) not afford deference to the initial denial of the claim, (ii) consult a medical professional who has appropriate training and experience in the field of medicine relating to the Claimant’s disability and who was neither consulted as part of the initial denial nor the subordinate of such individual, (iii) identify the medical or vocational experts whose advice was obtained with respect to the initial benefit denial, without regard to whether the advice was relied upon in making the decision, (iv) , if applicable, provide the Claimant, free of charge, with any new or additional evidence considered, relied upon, or generated in connection with the review of the claim as soon as possible and sufficiently in

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advance of the date on which the notice of an adverse benefit determination on review is required to be provided to give the Claimant a reasonable opportunity to respond prior to that date; and (v) if applicable, provide the Claimant, free of charge, with any new or additional for an adverse determination as soon as possible and sufficiently in advance of the date on which the notice of adverse benefit determination on review is required to be provided to give the Claimant a reasonable opportunity to respond prior to that date.

The Appeals Committee shall make its decision regarding the merits of the denied claim within forty-five (45) days following receipt of the appeal (or within ninety (90) days after such receipt, in a case where there are special circumstances requiring extension of time for reviewing the appealed claim).  If an extension of time for reviewing the appeal is required because of special circumstances, written notice of the extension shall be furnished to the Claimant prior to the commencement of the extension.  The notice will indicate the special circumstances requiring the extension of time and the date by which the Appeals Committee expects to render the determination on review.  Following its review of any additional information submitted by the Claimant, the Appeals Committee shall render a decision on its review of the denied claim.

C. Contents of Notice Generally.  If a benefits claim is completely or partially denied on review, notice of such denial shall be in writing and shall set forth the reasons for denial in plain language.

The decision on review shall set forth (i) the specific reason or reasons for the denial, (ii) specific references to the pertinent Plan provisions on which the denial is based, (iii) a statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to and copies of all documents, records, or other information relevant (as defined above) to the Claimant’s claim, and (iv) a statement describing any voluntary appeal procedures offered by the plan and a statement of the Claimant’s right to bring an action under Section 502(a) of ERISA.

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D. Contents of Notice for Disability Claims.  For the denial of a Disability benefit, the notice will also include:  (i) either the specific internal rules, guidelines, protocols, standards or other similar criteria of this Plan relied upon in making the adverse determination or, alternatively, a statement that such rules, guidelines, protocols, standards or other similar criteria of this Plan do not exist; (ii) if the adverse benefit determination is based on a medical necessity or experimental treatment or similar exclusion or limit, either an explanation of the scientific or clinical judgment for the determination, applying the terms of the Plan to the Claimant’s medical circumstances, or a statement that such explanation will be provided free of charge upon request; and (iii) a discussion of the decision, including an explanation of the basis for disagreeing with or not following (A) the views, presented by the Claimant to the Appeals Committee, of health care professionals treating the Claimant and vocational professionals who evaluated the Claimant, (B) the views of medical or vocational experts whose advice was obtained on behalf of the Appeals Committee in connection with the Claimant’s adverse benefit determination, without regard to whether the advice was relied upon in making the benefit determination, and (C) a disability determination regarding the claimant presented by the Claimant to the Appeals Committee made by the Social Security Administration.  The notice shall be provided in a culturally and linguistically appropriate manner (as described in Section 2560.503-1(o) of the Department of Labor Regulations).  If the Claimant does not receive a written decision within the time period(s) described above, the appeal shall be deemed denied on the last day of such period(s).”

IN WITNESS WHEREOF, the undersigned executed this 2018 Amendment to the Civista Bancshares, Inc. Supplemental Nonqualified Executive Retirement Plan, effective as of April 1, 2018, but on the date below.

Civista Bancshares, Inc.
By:	/s/ Dennis G. Shaffer
Title:	President, Chief Executive Officer
Date Signed:	May 15, 2018

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EX-31.1

Section 302 Certification

For Principal Executive Officer

Exhibit 31.1

I, Dennis G. Shaffer, certify that:

1. I have reviewed this quarterly report on Form 10-Q 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, Chief Executive Officer Date: August 8, 2018

EX-31.2

Section 302 Certification

For Principal Accounting Officer

Exhibit 31.2

I, Todd A. Michel, certify that:

1. I have reviewed this quarterly report on Form 10-Q 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: August 8, 2018

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 Quarterly Report of Civista Bancshares, Inc. (the “Company”) on Form 10-Q for the period ending June 30, 2018 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

August 8, 2018

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 Quarterly Report of Civista Bancshares, Inc. (the “Company”) on Form 10-Q for the period ending June 30, 2018 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 and Controller

August 8, 2018

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 03, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
Trading Symbol	Civb
Entity Registrant Name	CIVISTA BANCSHARES, INC.
Entity Central Index Key	0000944745
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		10,791,129

XML

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
ASSETS
Cash and due from financial institutions	$ 41,156	$ 40,519
Securities available for sale	231,013	230,230
Equity securities	907	832
Loans held for sale	4,058	2,197
Loans, net of allowance of $12,867 and $13,134	1,167,165	1,151,527
Other securities	14,247	14,247
Premises and equipment, net	17,308	17,611
Accrued interest receivable	4,489	4,488
Goodwill	27,095	27,095
Other intangible assets	1,247	1,279
Bank owned life insurance	25,411	25,125
Other assets	14,358	10,707
Total assets	1,548,454	1,525,857
Deposits
Noninterest-bearing	391,785	361,964
Interest-bearing	754,387	842,959
Total deposits	1,146,172	1,204,923
Federal Home Loan Bank advances	156,200	71,900
Securities sold under agreements to repurchase	14,230	21,755
Subordinated debentures	29,427	29,427
Accrued expenses and other liabilities	12,577	13,391
Total liabilities	1,358,606	1,341,396
SHAREHOLDERS’ EQUITY
Preferred shares, no par value, 200,000 shares authorized, Series B Preferred shares, $1,000 liquidation preference, 14,320 shares issued at June 30, 2018 and 18,760 shares issued at December 31, 2017, net of issuance costs	13,250	17,358
Common shares, no par value, 20,000,000 shares authorized, 11,536,856 shares issued at June 30, 2018 and 10,946,439 shares issued at December 31, 2017	158,191	153,810
Retained earnings	39,898	31,652
Treasury shares, 747,964 common shares at cost	(17,235)	(17,235)
Accumulated other comprehensive loss	(4,256)	(1,124)
Total shareholders’ equity	189,848	184,461
Total liabilities and shareholders’ equity	$ 1,548,454	$ 1,525,857

XML

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Statement Of Financial Position [Abstract]
Allowance for loan losses	$ 12,867	$ 13,134
Preferred shares, no par value
Preferred shares, shares authorized	200,000	200,000
Preferred shares, liquidation preference	$ 1,000	$ 1,000
Preferred shares, shares issued	14,320	18,760
Common shares, no par value
Common shares, shares authorized	20,000,000	20,000,000
Common shares, shares issued	11,536,856	10,946,439
Treasury shares, common shares	747,964	747,964

XML

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Interest and dividend income
Loans, including fees	$ 14,144	$ 12,412	$ 27,783	$ 24,189
Taxable securities	1,040	940	2,026	1,787
Tax-exempt securities	886	784	1,764	1,496
Federal funds sold and other	90	92	511	448
Total interest and dividend income	16,160	14,228	32,084	27,920
Interest expense
Deposits	570	428	1,277	892
Federal Home Loan Bank advances	482	170	634	258
Subordinated debentures	338	258	626	499
Securities sold under agreements to repurchase and other	4	5	9	10
Total interest expense	1,394	861	2,546	1,659
Net interest income	14,766	13,367	29,538	26,261
Net interest income after provision for loan losses	14,766	13,367	29,538	26,261
Noninterest income
Net gain on sale of securities	6		6
Net gain on equity securities	35		75
Net gain on sale of loans	474	478	807	735
Bank owned life insurance	144	143	286	287
Total noninterest income	4,390	4,101	10,006	9,237
Noninterest expense
Compensation expense	7,385	6,943	14,759	13,925
Net occupancy expense	862	655	1,623	1,312
Equipment expense	324	418	698	747
Contracted data processing	2,739	429	3,087	818
FDIC assessment	116	133	267	298
State franchise tax	363	255	681	512
Professional services	1,483	733	2,035	1,184
Amortization of intangible assets	26	158	59	325
ATM expense	208	214	426	468
Marketing	320	276	638	528
Other operating expenses	2,102	2,335	3,860	3,934
Total noninterest expense	15,928	12,549	28,133	24,051
Income before taxes	3,228	4,919	11,411	11,447
Income tax expense	214	1,323	1,408	3,216
Net Income	3,014	3,596	10,003	8,231
Preferred stock dividends	299	308	602	627
Net income available to common shareholders	$ 2,715	$ 3,288	$ 9,401	$ 7,604
Earnings per common share, basic	$ 0.26	$ 0.32	$ 0.91	$ 0.79
Earnings per common share, diluted	$ 0.24	$ 0.29	$ 0.79	$ 0.68
Service Charges [Member]
Noninterest income
Noninterest income	$ 1,359	$ 1,387	$ 2,493	$ 2,432
ATM/Interchange Fees [Member]
Noninterest income
Noninterest income	588	567	1,142	1,076
Wealth Management Fees [Member]
Noninterest income
Noninterest income	836	738	1,688	1,445
Tax Refund Processing Fees [Member]
Noninterest income
Noninterest income	550	550	2,750	2,750
Other [Member]
Noninterest income
Noninterest income	$ 398	$ 238	$ 759	$ 512

XML

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 3,014	$ 3,596	$ 10,003	$ 8,231
Other comprehensive income (loss):
Unrealized holding gains (losses) on available for sale securities	(684)	1,454	(3,898)	1,905
Tax effect	143	(495)	818	(647)
Pension liability adjustment	143	426	286	520
Tax effect	(30)	(145)	(60)	(177)
Total other comprehensive income (loss)	(428)	1,240	(2,854)	1,601
Comprehensive income	$ 2,586	$ 4,836	$ 7,149	$ 9,832

XML

Condensed Consolidated Statement of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Preferred Shares [Member]	Common Shares [Member]	Retained Earnings [Member]	Treasury Shares [Member]	Accumulated Other Comprehensive Loss [Member]
Beginning balance at Dec. 31, 2016						$ (2,337)
Net Income	$ 8,231
Other comprehensive loss	1,601					1,601
Ending balance at Jun. 30, 2017						(736)
Beginning balance at Mar. 31, 2017						(1,976)
Net Income	3,596
Other comprehensive loss	1,240					1,240
Ending balance at Jun. 30, 2017						(736)
Beginning balance at Dec. 31, 2017	184,461	$ 17,358	$ 153,810	$ 31,652	$ (17,235)	(1,124)
Balance, shares at Dec. 31, 2017		18,760	10,198,475
Net Income	10,003			10,003
Other comprehensive loss	(2,854)					(2,854)
Conversion of Series B preferred shares to common shares		$ (4,108)	$ 4,108
Conversion of Series B preferred shares to common shares, shares		(4,440)	567,703
Stock-based compensation	273		$ 273
Stock-based compensation, shares			22,714
Common stock dividends ($0.14 per share)	(1,433)			(1,433)
Preferred stock dividend	(602)			(602)
Ending balance at Jun. 30, 2018	189,848	$ 13,250	$ 158,191	39,898	(17,235)	(4,256)
Balance, shares at Jun. 30, 2018		14,320	10,788,892
Beginning balance at Mar. 31, 2018						(3,828)
Net Income	3,014
Other comprehensive loss	(428)					(428)
Ending balance at Jun. 30, 2018	$ 189,848	$ 13,250	$ 158,191	39,898	$ (17,235)	(4,256)
Balance, shares at Jun. 30, 2018		14,320	10,788,892
Change in accounting principle for adoption of ASU 2016-01				$ 278		$ (278)

XML

Condensed Consolidated Statement of Changes in Shareholders' Equity (Unaudited) (Parenthetical)	6 Months Ended
	Jun. 30, 2018 $ / shares
Retained Earnings [Member]
Common stock dividends per share	$ 0.14

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Statement Of Cash Flows [Abstract]
Net cash from operating activities	$ 5,324	$ 8,223
Cash flows used for investing activities:
Maturities and calls of securities, available-for-sale	9,332	15,385
Purchases of securities, available-for-sale	(14,606)	(48,444)
Purchases of other securities		(170)
Net loan originations	(15,382)	(45,318)
Proceeds from sale of other real estate owned properties	34	72
Proceeds from sale of premises and equipment	238	139
Premises and equipment purchases	(292)	(535)
Net cash used for investing activities	(20,676)	(78,871)
Cash flows from financing activities:
Repayment of long-term FHLB advances	(10,000)	(2,500)
Net change in short-term FHLB advances	94,300	17,300
Increase (decrease) in deposits	(58,751)	43,785
Decrease in securities sold under repurchase agreements	(7,525)	(16,195)
Net proceeds from common stock issuance		32,821
Common dividends paid	(1,433)	(1,116)
Preferred dividends paid	(602)	(627)
Net cash provided by financing activities	15,989	73,468
Increase in cash and due from financial institutions	637	2,820
Cash and due from financial institutions at beginning of period	40,519	36,695
Cash and due from financial institutions at end of period	41,156	39,515
Cash paid during the period for:
Interest	2,854	1,740
Income taxes	1,500	2,600
Supplemental cash flow information:
Transfer of loans from portfolio to other real estate owned		78
Transfer of premises to held-for-sale		3
Transfer of loans held for sale to portfolio	85	419
Conversion of preferred shares to common shares	4,108	1,382
Securities purchased not settled	$ 855	$ 1,073

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Consolidated Financial Statements

6 Months Ended

Jun. 30, 2018

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Consolidated Financial Statements

(1) Consolidated Financial Statements

Nature of Operations and Principles of Consolidation: Civista Bancshares, Inc. (CBI) is an Ohio corporation and a registered financial holding company. The Consolidated Financial Statements include the accounts of CBI and its wholly-owned subsidiaries: Civista Bank (Civista), First Citizens Insurance Agency, Inc. (FCIA), Water Street Properties, Inc. (Water St.), FC Refund Solutions, Inc. (FCRS) and CIVB Risk Management, Inc. (CRMI). FCRS was formed to facilitate payment of individual state and federal income tax refunds. CRMI is a wholly-owned captive insurance company which allows the Company to insure against certain risks unique to its operations and its subsidiaries. The operations of CRMI are located in Wilmington, Delaware. First Citizens Capital LLC (FCC) is wholly-owned by Civista and holds inter-company debt. The operations of FCC are located in Wilmington, Delaware. 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. 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 through June 30, 2018. Water Street Properties was formed to hold properties repossessed by CBI subsidiaries.  Revenue from Water St. was less than 1.0% of total revenue through June 30, 2018. The above companies together are referred to as the “Company.” Intercompany balances and transactions are eliminated in consolidation.Management considers the Company to operate primarily in one reportable segment, banking.

The Consolidated Financial Statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the Company’s financial position as of June 30, 2018 and its results of operations and changes in cash flows for the periods ended June 30, 2018 and 2017 have been made. The accompanying Consolidated Financial Statements have been prepared in accordance with instructions of Form 10-Q, and therefore certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America have been omitted. The results of operations for the period ended June 30, 2018 are not necessarily indicative of the operating results for the full year. Reference is made to the accounting policies of the Company described in the notes to the audited financial statements contained in the Company’s 2017 annual report. The Company has consistently followed these policies in preparing this Form 10-Q.

The Company provides financial services through its offices in the Ohio counties of Erie, Crawford, Champaign, Franklin, Logan, Madison, Summit, Huron, Ottawa, Richland, Montgomery and Cuyahoga. 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. Civista has two concentrations, one is to Lessors of Non-Residential Buildings and Dwellings totaling $301,003, or 25.4% of total loans, as of June 30, 2018 and the other is to Lessors of Residential Buildings and Dwellings totaling $147,497, or 12.5% of total loans, as of June 30, 2018. These segments of the portfolio are stable and have been conservatively underwritten, monitored and managed by experienced commercial bankers. However, the customers’ ability to repay their loans is dependent on the real estate market and general economic conditions in the area. Other financial instruments that potentially represent concentrations of credit risk include Federal Funds sold and deposit accounts in other financial institutions that are in excess of federally insured limits.

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Significant Accounting Policies

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Significant Accounting Policies

(2) Significant 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.  

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 financial statements and the disclosures provided, and future results could differ. The allowance for loan losses, impairment of goodwill, fair values of financial instruments, deferred taxes and pension obligations are particularly subject to change.

Income Taxes: Income tax expense is based on the effective tax rate expected to be applicable for the entire year. 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.

Business Combinations: At the date of acquisition the Company records the assets and liabilities of acquired companies on the Consolidated Balance Sheet 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.

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.

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. The Company is party to master netting arrangements with its financial institution counterparties; however, the Company does not offset assets and liabilities under these arrangements for financial statement presentation purposes because the Company does not currently intend to execute a setoff with its 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, usually in the form of marketable securities, is posted by the counterparty with net liability positions in accordance with contract thresholds.

Change in Accounting Principal:

In January 2016, the FASB issued Accounting Standards Update (ASU) 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. This accounting standard (a) requires separate presentation of equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) on the balance sheet and measured at fair value with changes in fair value recognized in net income; (b) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (c) eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; (d) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (e) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (f) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (g) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets.

The Company adopted ASU 2016-01 during the reporting period.The adoption resulted in the Company recognizing a one-time cumulative effect adjustment of $278 on January 1, 2018 between accumulated other comprehensive loss and retained earnings on the consolidated balance sheet for the fair value of the equity securities included in accumulated other comprehensive loss as of the beginning of the period.  The adjustment had no impact on net income for any prior periods presented.

On a prospective basis, the Company implemented changes to the measurement of the fair value of financial instruments using an exit price notion for disclosure purposes in Note 13 to the financial statements.  The December 31, 2017, fair value of each class of financial instruments disclosure did not utilize the exit price notion when measuring fair value and, therefore, would not be comparable to the June 30, 2018 disclosure.  The Company estimated the fair value based on guidance from ASC 820-10, Fair Value Measurements, which defines fair value as the price which would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  There is no active observable market for sale information on community bank loans and, thus, Level 3 fair value procedures were utilized, primarily in the use of present value techniques incorporating assumptions that market participants would use in estimating fair values.  The fair value of loans held for investment, excluding impaired loans measured at fair value on a non-recurring basis, is estimated using discounted cash flow analyses.  The discount rates used to determine fair value use interest rate spreads that reflect factors such as liquidity, credit and nonperformance risk of the loans.  Loans are considered a Level 3 classification.

In March 2017, the FASB issued ASU No. 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” Under the new guidance, employers are required to present the service cost component of the net periodic benefit cost in the same income statement line item (e.g., Salaries and Benefits) as other employee compensation costs arising from services rendered during the period. In addition, only the service cost component will be eligible for capitalization in assets. Employers will present the other components of net periodic benefit cost separately (e.g., Other Noninterest Expense) from the line item that includes the service cost. ASU No. 2017-07 is effective for interim and annual reporting periods beginning after December 15, 2017. Employers will apply the guidance on the presentation of the components of net periodic benefit cost in the income statement retrospectively. The guidance limiting the capitalization of net periodic benefit cost in assets to the service cost component will be applied prospectively. The Company adopted ASU No. 2017-07 on January 1, 2018 and has retrospectively applied the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the consolidated statement of income statement of operations. Adoption of ASU No. 2017-07 did not have a material impact on the Company’s Consolidated Financial Statements.

Effect of Newly Issued but Not Yet Effective Accounting Standards:

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The standard in this Update requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. A short-term lease is defined as one in which: (a) the lease term is 12 months or less, and (b) there is not an option to purchase the underlying asset that the lessee is reasonably certain to exercise. For short-term leases, lessees may elect to recognize lease payments over the lease term on a straight-line basis. For public business entities, such as the Company, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within those years. The amendments should be applied at the beginning of the earliest period presented using a modified retrospective approach with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is currently assessing the practical expedients it may elect at adoption, but does not anticipate the amendments will have a significant impact to the financial statements. Based on the Company’s preliminary analysis of its current portfolio, the impact to the Company’s balance sheet is estimated to result in less than a 1% increase in assets and liabilities. The Company also anticipates additional disclosures to be provided at adoption.

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. We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the Company’s consolidated financial statements.

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 a U.S. Securities and Exchange Commission (“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. 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 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20). The amendments in this Update shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. For public business entities, such as the Company, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity should apply the amendments in this Update on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Additionally, in the period of adoption, an entity should provide disclosures about a change in accounting principle. 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 July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), and Derivative and Hedging (Topic 815). The amendments in Part I of this Update change the classification analysis of certain equity-linked financial instruments (or embedded features) with down-round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down-round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. The amendments also clarify existing disclosure requirements for equity-classified instruments. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down-round feature. For freestanding equity classified financial instruments, the amendments require entities that present earnings per share (“EPS”) in accordance with Topic 260 to recognize the effect of the down-round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. Convertible instruments with embedded conversion options that have down- round features are now subject to the specialized guidance for contingent beneficial conversion features (in Subtopic 470-20, Debt—Debt with Conversion and Other Options ), including related EPS guidance (in Topic 260). The amendments in Part II of this Update recharacterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Accounting Standards Codification, to a scope exception. Those amendments do not have an accounting effect. For public business entities, such as the Company, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The amendments in Part I of this Update should be applied either retrospectively to outstanding financial instruments with a down-round feature by means of a cumulative-effect adjustment to the statement of financial position as of the beginning of the first fiscal year and interim period(s) in which the pending content that links to this paragraph is effective or retrospectively to outstanding financial instruments with a down-round feature for each prior reporting period presented in accordance with the guidance on accounting changes in paragraphs 250-10-45-5 through 45-10. The amendments in Part II of this Update do not require any transition guidance because those amendments do not have an accounting effect. 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 August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 850), the objective of which is to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. In addition, the amendments in this Update make certain targeted improvements to simplify the application and disclosure of the hedge accounting guidance in current general accepted accounting principles.  For public business entities, such as the Company, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early application is permitted in any period after issuance.  For cash flow and net investment hedges existing at the date of adoption, an entity should apply a cumulative-effect adjustment related to eliminating the separate measurement of ineffectiveness to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year that an entity adopts the amendments in this Update. The amended presentation and disclosure guidance is required only prospectively.  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 January 2018, the FASB issued ASU 2018-01, Leases (Topic 842), which provides an optional transition practical expedient to not evaluate under Topic 842 existing or expired land easements that were not previously accounted for as leases under the current lease guidance in Topic 840.  An entity that elects this practical expedient should evaluate new or modified land easements under Topic 842 beginning at the date the entity adopts Topic 842; otherwise, an entity should evaluate all existing or expired land easements in connection with the adoption of the new lease requirements in Topic 842 to assess whether they meet the definition of a lease.  The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in ASU 2016-02.  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 February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10), to clarify certain aspects of the guidance issued in ASU 2016-01.   (1) An entity measuring an equity security using the measurement alternative may change its measurement approach to a fair value method in accordance with Topic 820, Fair Value Measurement, through an irrevocable election that would apply to that security and all identical or similar investments of the same issuer.  Once an entity makes this election, the entity should measure all future purchases of identical or similar investments of the same issuer using a fair value method in accordance with Topic 820.  (2) Adjustments made under the measurement alternative are intended to reflect the fair value of the security as of the date that the observable transaction for a similar security took place.  (3) Remeasuring the entire value of forward contracts and purchased options is required when observable transactions occur on the underlying equity securities.  (4) When the fair value option is elected for a financial liability, the guidance in paragraph 825-10- 45-5 should be applied, regardless of whether the fair value option was elected under either Subtopic 815-15, Derivatives and Hedging—Embedded Derivatives, or 825-10, Financial Instruments—Overall. (5) Financial liabilities for which the fair value option is elected, the amount of change in fair value that relates to the instrument specific credit risk should first be measured in the currency of denomination when presented separately from the total change in fair value of the financial liability. Then, both components of the change in the fair value of the liability should be remeasured into the functional currency of the reporting entity using end-of-period spot rates.  (6) The prospective transition approach for equity securities without a readily determinable fair value in the amendments in Update 2016-01 is meant only for instances in which the measurement alternative is applied. For public business entities, such as the Company, the amendments in this Update are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years beginning after June 15, 2018. Public business entities with fiscal years beginning between December 15, 2017, and June 15, 2018, are not required to adopt these amendments until the interim period beginning after June 15, 2018, and public business entities with fiscal years beginning between June 15, 2018, and December 15, 2018, are not required to adopt these amendments before adopting the amendments in Update 2016-01. All entities may early adopt these amendments for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, as long as they have adopted Update 2016-01. This Update is not expected to have a significant impact on the Company’s financial statements.

In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718), which simplified the accounting for nonemployee share-based payment transactions.  The amendments in this update expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees.  The amendments in this Update improve the following areas of nonemployee share-based payment accounting; (a) the overall measurement objective, (b) the measurement date, (c) awards with performance conditions, (d) classification reassessment of certain equity-classified awards, (e) calculated value (nonpublic entities only), and (f) intrinsic value (nonpublic entities only).  The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. This Update is not expected to have a significant impact on the Company’s financial statements.

ASU 2018-10, Codification Improvements to Topic 842, Leases, represents changes to clarify, correct errors in, or make minor improvements to the Codification. The amendments in this ASU affect the amendments in ASU 2016-02, which are not yet effective, but for which early adoption upon issuance is permitted. For entities that early adopted Topic 842, the amendments are effective upon issuance of this ASU, and the transition requirements are the same as those in Topic 842. For entities that have not adopted Topic 842, the effective date and transition requirements will be the same as the effective date and transition requirements in Topic 842. This Update is not expected to have a significant impact on the Company’s financial statements.

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Securities

6 Months Ended

Jun. 30, 2018

Investments Debt And Equity Securities [Abstract]

Securities

(3) Securities

The amortized cost and fair market value of available for sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive loss were as follows:

June 30, 2018	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury securities and obligations of U.S. government    agencies	$	29,624	$	69	$	(294	)	$	29,399
Obligations of states and political subdivisions		116,051		2,298		(701	)		117,648
Mortgage-backed securities in government sponsored entities		85,556		208		(1,798	)		83,966
Total debt securities	$	231,231	$	2,575	$	(2,793	)	$	231,013

December 31, 2017	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury securities and obligations of U.S. government    agencies	$	30,450	$	100	$	(192	)	$	30,358
Obligations of states and political subdivisions		114,002		4,226		(172	)		118,056
Mortgage-backed securities in government sponsored entities		82,098		408		(690	)		81,816
Total debt securities	$	226,550	$	4,734	$	(1,054	)	$	230,230

The amortized cost and fair value of securities at June 30, 2018, by contractual maturity, is shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Securities not due at a single maturity date, primarily mortgage-backed securities and equity securities are shown separately.

Available for sale	Amortized Cost		Fair Value
Due in one year or less	$	13,504	$	13,462
Due after one year through five years		22,556		22,415
Due after five years through ten years		29,983		30,994
Due after ten years		79,632		80,176
Mortgage-backed securities		85,556		83,966
Total securities available for sale	$	231,231	$	231,013

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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Sale proceeds	$	—	$	—	$	—	$	—
Gross realized gains		—		—		—		—
Gross realized losses		—		—		—		—
Gains (losses) from securities called or settled by the issuer		6		—		6		—

Securities were pledged to secure public deposits, other deposits and liabilities as required by law. The carrying value of pledged securities was approximately $130,506 and $122,862 as of June 30, 2018 and December 31, 2017, respectively.

Securities with unrealized losses at June 30, 2018 and December 31, 2017 not recognized in income are as follows:

June 30, 2018	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	$	15,172	$	(159	)	$	11,366	$	(135	)	$	26,538	$	(294	)
Obligations of states and political subdivisions		27,449		(448	)		7,453		(253	)		34,902		(701	)
Mortgage-backed securities in gov’t sponsored entities		57,043		(1,027	)		19,721		(771	)		76,764		(1,798	)
Total temporarily impaired	$	99,664	$	(1,634	)	$	38,540	$	(1,159	)	$	138,204	$	(2,793	)

December 31, 2017	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	$	20,449	$	(100	)	$	6,617	$	(92	)	$	27,066	$	(192	)
Obligations of states and political subdivisions		4,057		(41	)		7,309		(131	)		11,366		(172	)
Mortgage-backed securities in gov’t sponsored entities		29,534		(195	)		22,199		(495	)		51,733		(690	)
Total temporarily impaired	$	54,040	$	(336	)	$	36,125	$	(718	)	$	90,165	$	(1,054	)

At June 30, 2018, there were 130 securities in the portfolio with unrealized losses mainly due to higher market rates when compared to the time of purchase. Unrealized losses on securities have not been recognized into income because the issuers’ securities 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 market yields increasing. 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 for the three and six-months ended June 30, 2018, and the portion of unrealized gains and losses for the period that relates to equity investments held at June 30, 2018:

	Three months ended		Six months ended
	June 30, 2018		June 30, 2018
Net gains recognized on equity securities during the    period	$	35	$	75
Less: Net gains (losses) realized on the sale of equity securities    during the period		—		—
Unrealized gains recognized in equity securities held at    reporting date	$	35	$	75

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Loans

6 Months Ended

Jun. 30, 2018

Receivables [Abstract]

Loans

(4) Loans

Loan balances were as follows:

	June 30, 2018			December 31, 2017
Commercial & Agriculture	$	153,742		$	152,473
Commercial Real Estate- Owner Occupied		169,745			164,099
Commercial Real Estate- Non-Owner Occupied		431,095			425,623
Residential Real Estate		271,207			268,735
Real Estate Construction		100,812			97,531
Farm Real Estate		37,845			39,461
Consumer and Other		15,586			16,739
Total loans		1,180,032			1,164,661
Allowance for loan losses		(12,867	)		(13,134	)
Net loans	$	1,167,165		$	1,151,527

Included in total loans above are deferred loan fees of $52 at June 30, 2018 and $223 at December 31, 2017.

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Allowance for Loan Losses

6 Months Ended

Jun. 30, 2018

Text Block [Abstract]

Allowance for Loan Losses

(5) Allowance for Loan Losses

Management has an established methodology for determining 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 and lease losses, the Company has segmented certain loans in the portfolio by product type. 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 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 balance sheet date. The Company considers the allowance for loan losses of $12,867 adequate to cover loan losses inherent in the loan portfolio, at June 30, 2018. The following tables present, by portfolio segment, the changes in the allowance for loan losses for the three and six months ended June 30, 2018 and 2017.

Allowance for loan losses:

For the six months ended June 30, 2018	Beginningbalance		Charge-offs			Recoveries		Provision			Ending Balance
Commercial & Agriculture	$	1,562	$	(248	)	$	104	$	212		$	1,630
Commercial Real Estate:
Owner Occupied		2,043		(193	)		130		181			2,161
Non-Owner Occupied		5,307		(45	)		21		(148	)		5,135
Residential Real Estate		1,910		(62	)		93		(250	)		1,691
Real Estate Construction		834		—			—		27			861
Farm Real Estate		430		—			3		(23	)		410
Consumer and Other		290		(103	)		33		80			300
Unallocated		758		—			—		(79	)		679
Total	$	13,134	$	(651	)	$	384	$	—		$	12,867

For the six months ended June 30, 2018, the allowance for Commercial & Agriculture loans increased due to an increase in general reserves required for this type as a result of higher loan balances. The result was represented as an increase 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 higher loan balances. The allowance for Commercial Real Estate – Non-Owner Occupied loans was reduced by a decrease in general reserves required for this type as a result of lower loss rates.  The allowance for Residential Real Estate loans was reduced by a decrease in general reserves required for this type as a result of a decrease in loss rates, represented by a decrease in the provision. 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. 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.

Allowance for loan losses:

For the six months ended June 30, 2017	Beginning balance		Charge-offs			Recoveries		Provision			Ending Balance
Commercial & Agriculture	$	2,018	$	(1	)	$	83	$	(492	)	$	1,608
Commercial Real Estate:
Owner Occupied		2,171		(210	)		18		31			2,010
Non-Owner Occupied		4,606		—			9		124			4,739
Residential Real Estate		3,089		(196	)		87		(304	)		2,676
Real Estate Construction		420		—			19		43			482
Farm Real Estate		442		—			—		(17	)		425
Consumer and Other		314		(81	)		14		77			324
Unallocated		245		—			—		538			783
Total	$	13,305	$	(488	)	$	230	$	—		$	13,047

For the six months ended June 30, 2017, the allowance for Commercial & Agriculture loans was reduced by a decrease in general reserves as a result of lower loss rates, offset by an increase in the specific reserves required for this type.  The result of these changes was represented as a decrease in the provision.  The allowance for Commercial Real Estate – Owner Occupied loans was reduced by a decrease in general reserves as a result of lower loss rates.  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, offset by lower loss rates.  The allowance for Residential Real Estate loans was reduced by a decrease in general reserves required for this type as a result of a decrease in loss rates, represented by a decrease in the provision.  The allowance for Real Estate Construction loans increased due to higher outstanding loan balances for this type of loan and recoveries.  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 of these changes was represented as a decrease in the provision.  The allowance for Consumer and Other loans was increased by an increase in general reserves required for this type as a result of higher loss rates.  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.

Allowance for loan losses:

For the three months ended June 30, 2018	Beginning balance		Charge-offs			Recoveries		Provision			Ending Balance
Commercial & Agriculture	$	1,359	$	(123	)	$	85	$	309		$	1,630
Commercial Real Estate:
Owner Occupied		2,030		—			121		10			2,161
Non-Owner Occupied		5,670		(1	)		7		(541	)		5,135
Residential Real Estate		1,750		(40	)		35		(54	)		1,691
Real Estate Construction		820		—			—		41			861
Farm Real Estate		411		—			2		(3	)		410
Consumer and Other		247		(62	)		29		86			300
Unallocated		527		—			—		152			679
Total	$	12,814	$	(226	)	$	279	$	—		$	12,867

For the three months ended June 30, 2018, the allowance for Commercial & Agriculture loans increased due to an increase in general reserves required for this type as a result of higher loan balances. The result was represented as an increase 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 higher loan balances. The allowance for Commercial Real Estate – Non-Owner Occupied loans was reduced by a decrease in general reserves required for this type as a result of lower loss rates.  The allowance for Residential Real Estate loans was reduced by a decrease in general reserves required for this type as a result of a decrease in loss rates, represented by a decrease in the provision. 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. 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.

Allowance for loan losses:

For the three months ended June 30, 2017	Beginning balance		Charge-offs			Recoveries		Provision			Ending Balance
Commercial & Agriculture	$	1,569	$	—		$	27	$	12		$	1,608
Commercial Real Estate:
Owner Occupied		2,259		(210	)		16		(55	)		2,010
Non-Owner Occupied		4,543		—			4		192			4,739
Residential Real Estate		3,022		(107	)		32		(271	)		2,676
Real Estate Construction		413		—			14		55			482
Farm Real Estate		407		—			—		18			425
Consumer and Other		354		(40	)		11		(1	)		324
Unallocated		733		—			—		50			783
Total	$	13,300	$	(357	)	$	104	$	—		$	13,047

For the three months ended June 30, 2017, the increase in the allowance for Commercial & Agriculture loans was due to an increase in general reserves as a result of higher loan balances.  The result was represented as an increase in the provision.  The allowance for Commercial Real Estate – Owner Occupied loans was reduced by a decrease in general reserves as a result of lower loss rates.  The result was represented as a decrease 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, offset by lower loss rates.  The allowance for Residential Real Estate loans was reduced by a decrease in general reserves required for this type as a result of a decrease in loss rates, represented by a decrease in the provision.  The allowance for Real Estate Construction loans increased due to higher outstanding loan balances for this type of loan and recoveries.  The allowance for Farm Real Estate loans increased due to higher outstanding loan balances for this type of loan.  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.

The following tables present, by portfolio segment, the allocation of the allowance for loan losses and related loan balances as of June 30, 2018 and December 31, 2017.

June 30, 2018	Loans acquired with credit deterioration		Loans individually evaluated for impairment		Loans collectively evaluated for impairment		Total
Allowance for loan losses:
Commercial & Agriculture	$	—	$	5	$	1,625	$	1,630
Commercial Real Estate:
Owner Occupied		—		8		2,153		2,161
Non-Owner Occupied		—		—		5,135		5,135
Residential Real Estate		29		100		1,562		1,691
Real Estate Construction		—		—		861		861
Farm Real Estate		—		6		404		410
Consumer and Other		—		—		300		300
Unallocated		—		—		679		679
Total	$	29	$	119	$	12,719	$	12,867
Outstanding loan balances:
Commercial & Agriculture	$	61	$	961	$	152,720	$	153,742
Commercial Real Estate:
Owner Occupied		—		517		169,228		169,745
Non-Owner Occupied		—		39		431,056		431,095
Residential Real Estate		108		1,307		269,792		271,207
Real Estate Construction		—		—		100,812		100,812
Farm Real Estate		—		778		37,067		37,845
Consumer and Other		—		—		15,586		15,586
Total	$	169	$	3,602	$	1,176,261	$	1,180,032

December 31, 2017	Loans acquired with credit deterioration		Loans individually evaluated for impairment		Loans collectively evaluated for impairment		Total
Allowance for loan losses:
Commercial & Agriculture	$	82	$	4	$	1,476	$	1,562
Commercial Real Estate:
Owner Occupied		—		6		2,037		2,043
Non-Owner Occupied		—		—		5,307		5,307
Residential Real Estate		44		109		1,757		1,910
Real Estate Construction		—		—		834		834
Farm Real Estate		—		6		424		430
Consumer and Other		—		—		290		290
Unallocated		—		—		758		758
Total	$	126	$	125	$	12,883	$	13,134
Outstanding loan balances:
Commercial & Agriculture	$	87	$	438	$	151,948	$	152,473
Commercial Real Estate:
Owner Occupied		—		1,010		163,089		164,099
Non-Owner Occupied		—		44		425,579		425,623
Residential Real Estate		128		1,360		267,247		268,735
Real Estate Construction		—		—		97,531		97,531
Farm Real Estate		—		608		38,853		39,461
Consumer and Other		—		—		16,739		16,739
Total	$	215	$	3,460	$	1,160,986	$	1,164,661

The following tables present credit exposures by internally assigned grades as of June 30, 2018 and December 31, 2017. 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 grading 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.

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.

June 30, 2018	Pass		Special Mention		Substandard		Doubtful		Ending Balance
Commercial & Agriculture	$	148,387	$	2,297	$	3,058	$	—	$	153,742
Commercial Real Estate:
Owner Occupied		163,160		1,256		5,329		—		169,745
Non-Owner Occupied		428,084		2,288		723		—		431,095
Residential Real Estate		60,275		1,831		5,091		—		67,197
Real Estate Construction		91,406		14		1,289		—		92,709
Farm Real Estate		29,816		5,079		2,950		—		37,845
Consumer and Other		1,272		—		14		—		1,286
Total	$	922,400	$	12,765	$	18,454	$	—	$	953,619

December 31, 2017	Pass		Special Mention		Substandard		Doubtful		Ending Balance
Commercial & Agriculture	$	140,842	$	8,412	$	3,219	$	—	$	152,473
Commercial Real Estate:
Owner Occupied		155,756		1,166		7,177		—		164,099
Non-Owner Occupied		422,363		2,321		939		—		425,623
Residential Real Estate		62,628		1,997		5,873		—		70,498
Real Estate Construction		91,545		15		27		—		91,587
Farm Real Estate		25,228		11,236		2,997		—		39,461
Consumer and Other		1,312		—		70		—		1,382
Total	$	899,674	$	25,147	$	20,302	$	—	$	945,123

The following tables present performing and nonperforming loans based solely on payment activity for the periods ended June 30, 2018 and December 31, 2017 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.

June 30, 2018	Residential Real Estate		Real Estate Construction		Consumer and Other		Total
Performing	$	204,010	$	8,103	$	14,266	$	226,379
Nonperforming		—		—		34		34
Total	$	204,010	$	8,103	$	14,300	$	226,413

December 31, 2017	Residential Real Estate		Real Estate Construction		Consumer and Other		Total
Performing	$	198,237	$	5,944	$	15,341	$	219,522
Nonperforming		—		—		16		16
Total	$	198,237	$	5,944	$	15,357	$	219,538

The following tables include an aging analysis of the recorded investment of past due loans outstanding as of June 30, 2018 and December 31, 2017.

June 30, 2018	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	$	186	$	—	$	663	$	849	$	152,832	$	61	$	153,742	$	—
Commercial Real Estate:
Owner Occupied		176		195		452		823		168,922		—		169,745		—
Non-Owner Occupied		—		—		155		155		430,940		—		431,095		—
Residential Real Estate		440		307		533		1,280		269,819		108		271,207		—
Real Estate Construction		—		—		27		27		100,785		—		100,812		—
Farm Real Estate		149		78		181		408		37,437		—		37,845		—
Consumer and Other		123		22		39		184		15,402		—		15,586		34
Total	$	1,074	$	602	$	2,050	$	3,726	$	1,176,137	$	169	$	1,180,032	$	34

December 31, 2017	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	$	575	$	2	$	685	$	1,262	$	151,124	$	87	$	152,473	$	—
Commercial Real Estate:
Owner Occupied		897		104		484		1,485		162,614		—		164,099		—
Non-Owner Occupied		133		—		470		603		425,020		—		425,623		—
Residential Real Estate		1,613		229		785		2,627		265,980		128		268,735		—
Real Estate Construction		—		—		27		27		97,504		—		97,531		—
Farm Real Estate		27		—		186		213		39,248		—		39,461		—
Consumer and Other		92		96		16		204		16,535		—		16,739		16
Total	$	3,337	$	431	$	2,653	$	6,421	$	1,158,025	$	215	$	1,164,661	$	16

The following table presents loans on nonaccrual status, excluding purchased credit-impaired (PCI) loans, as of June 30, 2018 and December 31, 2017.

	June 30, 2018		December 31, 2017
Commercial & Agriculture	$	856	$	887
Commercial Real Estate:
Owner Occupied		810		1,476
Non-Owner Occupied		252		711
Residential Real Estate		2,261		2,778
Real Estate Construction		27		27
Farm Real Estate		181		186
Consumer and Other		11		67
Total	$	4,398	$	6,132

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 the Company 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. Payments received on nonaccrual loans are applied to the unpaid principal balance. 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 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.

Modifications: A modification of a loan constitutes a TDR when the Company for economic or legal reasons related to a borrower’s financial difficulties grants a concession to the borrower that it would not otherwise consider. The Company 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. Residential Real Estate loans modified in a TDR primarily involve interest rate reductions where monthly payments are 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 fair value of the collateral, less any selling costs, if the loan is collateral dependent. Management exercises significant judgment in developing these estimates. As of June 30, 2018, TDRs accounted for $148 of the allowance for loan losses. As of December 31, 2017, TDRs accounted for $169 of the allowance for loan losses.

Loan modifications that are considered TDRs completed during the periods ended June 30, 2018 and June 30, 2017 were as follows:

	For the Six-Month Period Ended
	June 30, 2018
	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial & Agriculture		3	$	591	$	591
Commercial Real Estate—Owner Occupied		—		—		—
Commercial Real Estate—Non-Owner Occupied		—		—		—
Residential Real Estate		—		—		—
Real Estate Construction		—		—		—
Farm Real Estate		—		—		—
Consumer and Other		—		—		—
Total Loan Modifications		3	$	591	$	591

	For the Six-Month Period Ended
	June 30, 2017
	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial & Agriculture		—	$	—	$	—
Commercial Real Estate—Owner Occupied		—		—		—
Commercial Real Estate—Non-Owner Occupied		—		—		—
Residential Real Estate		1		13		13
Real Estate Construction		—		—		—
Farm Real Estate		—		—		—
Consumer and Other		—		—		—
Total Loan Modifications		1	$	13	$	13

	For the three months ended
	June 30, 2018
	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial & Agriculture		—	$	—	$	—
Commercial Real Estate—Owner Occupied		—		—		—
Commercial Real Estate—Non-Owner Occupied		—		—		—
Residential Real Estate		—		—		—
Real Estate Construction		—		—		—
Farm Real Estate		—		—		—
Consumer and Other		—		—		—
Total Loan Modifications		—	$	—	$	—

	For the three months ended
	June 30, 2017
	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial & Agriculture		—	$	—	$	—
Commercial Real Estate—Owner Occupied		—		—		—
Commercial Real Estate—Non-Owner Occupied		—		—		—
Residential Real Estate		1		13		13
Real Estate Construction		—		—		—
Farm Real Estate		—		—		—
Consumer and Other		—		—		—
Total Loan Modifications		1	$	13	$	13

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 origination loans, so modified loans present a higher risk of loss than do new origination loans.

During both the three- and six-month periods ended June 30, 2018 and June 30, 2017, there were no defaults on loans that were modified and considered TDRs during the respective twelve previous months.

Impaired Loans: Larger (greater than $350) Commercial & Agricultural and Commercial Real Estate loan relationships, all TDRs and Residential Real Estate and Consumer loans that are part of a larger relationship are tested for impairment on a quarterly basis. 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 June 30, 2018 and December 31, 2017.

	June 30, 2018						December 31, 2017
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:
Commercial & Agriculture	$	571	$	571			$	—	$	—
Commercial Real Estate:
Owner Occupied		207		207				693		913
Non-Owner Occupied		39		43				44		48
Residential Real Estate		937		1,009				977		1,049
Farm Real Estate		328		328				148		148
Consumer and Other		—		—				—		—
Total		2,082		2,158				1,862		2,158
With an allowance recorded:
Commercial & Agriculture		390		390	$	5		438		438	$	4
Commercial Real Estate:
Owner Occupied		310		310		8		317		317		6
Non-Owner Occupied		—		—		—		—		—		—
Residential Real Estate		370		374		100		383		387		109
Farm Real Estate		450		450		6		460		460		6
Total		1,520		1,524		119		1,598		1,602		125
Total:
Commercial & Agriculture		961		961		5		438		438		4
Commercial Real Estate:
Owner Occupied		517		517		8		1,010		1,230		6
Non-Owner Occupied		39		43		—		44		48		—
Residential Real Estate		1,307		1,383		100		1,360		1,436		109
Farm Real Estate		778		778		6		608		608		6
Consumer and Other		—		—		—		—		—		—
Total	$	3,602	$	3,682	$	119	$	3,460	$	3,760	$	125

The following table includes the average recorded investment and interest income recognized for impaired financing receivables for the three- and six-month periods ended June 30, 2018 and 2017.

	June 30, 2018				June 30, 2017
For the six months ended	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial & Agriculture	$	808	$	13	$	1,756	$	20
Commercial Real Estate—Owner Occupied		686		17		1,829		48
Commercial Real Estate—Non-Owner Occupied		42		3		357		3
Residential Real Estate		1,334		34		1,610		39
Real Estate Construction		—		—		—		—
Farm Real Estate		726		15		614		13
Consumer and Other		—		—		—		—
Total	$	3,596	$	82	$	6,166	$	123

	June 30, 2018				June 30, 2017
For the three months ended:	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial & Agriculture	$	993	$	6	$	1,643	$	6
Commercial Real Estate—Owner Occupied		524		8		1,795		26
Commercial Real Estate—Non-Owner Occupied		41		2		356		2
Residential Real Estate		1,321		17		1,572		19
Real Estate Construction		—		—		—		—
Farm Real Estate		785		8		614		7
Consumer and Other		—		—		—		—
Total	$	3,664	$	41	$	5,980	$	60

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

	For the Six-Month Period Ended June 30, 2018			For the Six-Month Period Ended June 30, 2017
	(In Thousands)			(In Thousands)
Balance at beginning of period	$	15		$	49
Acquisition of PCI loans		—			—
Accretion		(9	)		(18	)
Balance at end of period	$	6		$	31

	For the Three-Month Period Ended June 30, 2018			For the Three-Month Period Ended June 30, 2017
	(In Thousands)			(In Thousands)
Balance at beginning of period	$	8		$	40
Acquisition of PCI loans		—			—
Accretion		(2	)		(9	)
Balance at end of period	$	6		$	31

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

	At June 30, 2018		At December 31, 2017
	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	$	720	$	775
Carrying amount		169		215

There has been $29 and $126 in allowance for loan losses recorded for acquired loans with or without specific evidence of deterioration in credit quality as of June 30, 2018 and December 31, 2017, respectively.

Foreclosed Assets Held For Sale

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 June 30, 2018 and December 31, 2017, a total of $0 and $16, respectively of foreclosed assets were included in other assets. As of June 30, 2018 and December 31, 2017, the Company had initiated formal foreclosure procedures on $379 and $239, respectively, of consumer residential mortgages.

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Other Comprehensive Income

6 Months Ended

Jun. 30, 2018

Equity [Abstract]

Other Comprehensive Income

(6) Other Comprehensive Income

The following table presents the changes in each component of accumulated other comprehensive income (loss), net of tax. 

	For the Six-Month Period Ended									For the Six-Month Period Ended
	June 30, 2018(a)									June 30, 2017(a)
	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	$	3,185		$	(4,309	)	$	(1,124	)	$	2,008	$	(4,345	)	$	(2,337	)
Other comprehensive income before reclassifications		(3,085	)		—			(3,085	)		1,258		—			1,258
Amounts reclassified from accumulated other    comprehensive loss		5			226			231			—		343			343
Net current-period other comprehensive income		(3,080	)		226			(2,854	)		1,258		343			1,601
Reclassification of equity securities from accumulated    other comprehensive loss		(278	)		—			(278	)		—		—			—
Ending balance	$	(173	)	$	(4,083	)	$	(4,256	)	$	3,266	$	(4,002	)	$	(736	)

(a) Amounts in parentheses indicate debits on the consolidated balance sheets.

The following table presents the amounts reclassified out of each component of accumulated other comprehensive income (loss).

	Amount Reclassified from Accumulated Other Comprehensive Income (Loss) (a)
Details about Accumulated Other Comprehensive (Loss) Components	For the Six months ended June 30, 2018			For the Six months ended June 30, 2017			Affected Line Item in the Statement Where Net Income is Presented
Unrealized gains and losses on available-for-sale securities	$	(6	)	$	—		Net (gain) loss on securities    available for sale
Tax effect		1			—		Income tax expense
		(5	)		—		Net of tax
Amortization of defined benefit pension items
Actuarial gains/(losses) (b)		(286	)		(520	)	Salaries, wages and benefits
Tax effect		60			177		Income tax expense
		(226	)		(343	)	Net of tax
Total reclassifications for the period	$	(231	)	$	(343	)	Net of tax

The following table presents the changes in each component of accumulated other comprehensive income (loss), net of tax.

	For the Three-Month Period Ended									For the Three-Month Period Ended
	June 30, 2018(a)									June 30, 2017(a)
	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	$	368		$	(4,196	)	$	(3,828	)	$	2,307	$	(4,283	)	$	(1,976	)
Other comprehensive income before reclassifications		(546	)		—			(546	)		959		—			959
Amounts reclassified from accumulated other    comprehensive loss		5			113			118			—		281			281
Net current-period other comprehensive income		(541	)		113			(428	)		959		281			1,240
Ending balance	$	(173	)	$	(4,083	)	$	(4,256	)	$	3,266	$	(4,002	)	$	(736	)

(a) Amounts in parentheses indicate debits on the consolidated balance sheets.

The following table presents the amounts reclassified out of each component of accumulated other comprehensive income (loss).

	Amount Reclassified from Accumulated Other Comprehensive Income (Loss) (a)
Details about Accumulated Other Comprehensive (Loss) Components	For the Three months ended June 30, 2018			For the Three months ended June 30, 2017			Affected Line Item in the Statement Where Net Income is Presented
Unrealized gains and losses on available-for-sale securities	$	(6	)	$	—		Net (gain) loss on securities    available for sale
Tax effect		1			—		Income tax expense
		(5	)		—		Net of tax
Amortization of defined benefit pension items
Actuarial gains/(losses) (b)		(143	)		(426	)	Other operating expenses
Tax effect		30			145		Income tax expense
		(113	)		(281	)	Net of tax
Total reclassifications for the period	$	(118	)	$	(281	)	Net of tax

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

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

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Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2018

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

(7) Goodwill and Intangible Assets

There has been no change in the carrying amount of goodwill of $27,095 for the periods ended June 30, 2018 and December 31, 2017. Management performs an evaluation of goodwill for impairment annually, or more frequently if events or changes in circumstances indicate that the asset might be impaired. Management last performed an evaluation of the Company’s goodwill during the fourth quarter of 2017 and concluded that the Company’s goodwill was not impaired at December 31, 2017.

Acquired intangible assets, other than goodwill, as of June 30, 2018 and December 31, 2017 were as follows:

	2018						2017
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Amortized intangible assets(1):
MSRs	$	1,134	$	364	$	770	$	1,065	$	322	$	743
Core deposit intangibles		7,274		6,797		477		7,274		6,738		536
Total amortized intangible assets	$	8,408	$	7,161	$	1,247	$	8,339	$	7,060	$	1,279

(1) Excludes fully amortized intangible assets

Aggregate core deposit intangible amortization expense was $26, $158, $59 and $325 for the three and six-months ended June 30, 2018 and 2017, respectively.

Aggregate mortgage servicing rights amortization was $27, $17, $43 and $28 for the three and six-months ended June 30, 2018 and 2017, respectively.

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

	MSRs		Core deposit intangibles		Total
2018	$	21	$	52	$	73
2019		42		88		130
2020		42		72		114
2021		42		68		110
2022		42		68		110
Thereafter		581		129		710
	$	770	$	477	$	1,247

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Short-Term Borrowings

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Short-Term Borrowings

(8) Short-Term Borrowings

Short-term borrowings, which consist of federal funds purchased and other short-term borrowings are included in Federal Home Loan Bank advances on the Consolidated Balance Sheets and are summarized as follows:

	At June 30, 2018					At December 31, 2017
	Federal Funds Purchased		Short-term Borrowings			Federal Funds Purchased			Short-term Borrowings
Outstanding balance	$	—	$	151,200		$	—		$	56,900
Maximum indebtedness		—		153,600			20,000			115,050
Average balance		—		64,241			119			38,825
Average rate paid		—		1.78	%		1.68	%		1.12	%
Interest rate on balance		—		1.92	%		—			1.42	%

Average balance during the period represents daily averages. Average rate paid represents interest expense divided by the related average balances.

These borrowing transactions can range from overnight to six months in maturity. The average maturity was one day at June 30, 2018 and December 31, 2017.

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 June 30, 2018 and December 31, 2017. All of the repurchase agreements are overnight agreements.

	June 30, 2018		December 31, 2017
Securities pledged for repurchase agreements:
U.S. Treasury securities	$	632	$	874
Obligations of U.S. government agencies		13,598		20,881
Total securities pledged	$	14,230	$	21,755
Gross amount of recognized liabilities for repurchase agreements	$	14,230	$	21,755
Amounts related to agreements not included in offsetting    disclosures above	$	—	$	—

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Earnings per Common Share

6 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

Earnings per Common Share

(9) Earnings per Common Share

Basic earnings per common share are computed as net income available to common shareholders divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share include the dilutive effect, if any, of additional potential common shares issuable under the Company’s equity incentive plan, computed using the treasury stock method, and the impact of the Company’s convertible preferred stock using the “if converted” method.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Basic
Net income	$	3,014	$	3,596	$	10,003	$	8,231
Preferred stock dividends		299		308		602		627
Net income available to common shareholders—basic	$	2,715	$	3,288	$	9,401	$	7,604
Weighted average common shares outstanding—basic		10,470,839		10,162,528		10,342,763		9,634,363
Basic earnings per common share	$	0.26	$	0.32	$	0.91	$	0.79
Diluted
Net income available to common shareholders—basic	$	2,715	$	3,288	$	9,401	$	7,604
Preferred stock dividends		299		308		602		627
Net income available to common shareholders—diluted	$	3,014	$	3,596	$	10,003	$	8,231
Weighted average common shares outstanding for basic    earnings per common share		10,470,839		10,162,528		10,342,763		9,634,363
Add: Dilutive effects of convertible preferred shares		2,144,497		2,431,349		2,263,652		2,469,465
Average shares and dilutive potential common shares    outstanding—diluted		12,615,336		12,593,877		12,606,415		12,103,828
Diluted earnings per common share	$	0.24	$	0.29	$	0.79	$	0.68

For the three-month period ended June 30, 2018 there were 2,144,497 dilutive shares related to the Company’s convertible preferred stock.  For the six-month period ended June 30, 2018 there were 2,263,652 dilutive shares related to the Company’s convertible preferred stock.  For the three-month period ended June 30, 2017 there were 2,431,349 dilutive shares related to the Company’s convertible preferred stock.  For the six-month period ended June 30, 2017 there were 2,469,465 dilutive shares related to the Company’s convertible preferred stock.  Under the “if converted” method, all convertible preferred shares are assumed to be converted into common shares at the corresponding conversion rate. These additional shares are then added to the common shares outstanding to calculate diluted earnings per share.

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Commitments, Contingencies and Off-Balance Sheet Risk

6 Months Ended

Jun. 30, 2018

Commitments And Contingencies Disclosure [Abstract]

Commitments, Contingencies and Off-Balance Sheet Risk

(10) 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 customers’ financing needs. These are agreements to provide credit or to support the credit of others, as long as the conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Off-balance-sheet risk of 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 commitment. The contractual amounts of financial instruments with off-balance-sheet risk were as follows for June 30, 2018 and December 31, 2017:

	Contract Amount
	June 30, 2018				December 31, 2017
	Fixed Rate		Variable Rate		Fixed Rate		Variable Rate
Commitment to extend credit:
Lines of credit and construction loans	$	5,457	$	278,612	$	4,982	$	286,925
Overdraft protection		3		33,682		7		33,353
Letters of credit		624		2,350		624		2,637
	$	6,084	$	314,644	$	5,613	$	322,915

Commitments to make loans are generally made for a period of one year or less. Fixed rate loan commitments included in the table above had interest rates ranging from 2.88% to 8.50% at June 30, 2018 and from 2.88% to 10.25% at December 31, 2017. 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 $8,284 on June 30, 2018 and $4,112 on December 31, 2017.

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Pension Information

6 Months Ended

Jun. 30, 2018

Compensation And Retirement Disclosure [Abstract]

Pension Information

(11) Pension Information

The Company sponsors a pension plan which is a noncontributory defined benefit retirement plan. 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 2014, the Company amended the pension plan again to provide that no additional benefits would accrue beyond April 30, 2014.

Net periodic pension benefit was as follows:

	Three months ended						Six Months Ended
	June 30,						June 30,
	2018			2017			2018			2017
Service cost	$	—		$	—		$	—		$	—
Interest cost		125			171			250			338
Expected return on plan assets		(273	)		(283	)		(546	)		(561	)
Other components		143			426			286			520
Net periodic pension benefit	$	(5	)	$	314		$	(10	)	$	297

The Company does not expect to make any contribution to its pension plan in 2018. The Company contributed $2,000 in 2017.

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Equity Incentive Plan

6 Months Ended

Jun. 30, 2018

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Equity Incentive Plan

(12) 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 269,495 shares available for future grants under this plan at June 30, 2018.

During each of the last three 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.

On May 16, 2017, 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 of 6,804 common shares were issued to Civista directors as payment of their retainer for their service on the Civista Board of Directors covering the period up to the 2018 Annual Meeting. This issuance was expensed in its entirety when the shares were issued in the amount of $144.

On September 11, 2017, a newly appointed director of the Company’s banking subsidiary, Civista, was paid a retainer in the form of non-restricted common shares of the Company. The aggregate of 367 common shares was issued as payment of her retainer for her service on the Civista Board of Directors covering the period up to the 2018 Annual Meeting. This issuance was expensed in its entirety when the shares were issued in the amount of $8.

Finally, on May 17, 2018, 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 of 6,204 common shares were issued to Civista directors as payment of their retainer for their service on the Civista Board of Directors covering the period up to the 2019 Annual Meeting. This issuance was expensed in its entirety when the shares were issued in the amount of $144.

No options had been granted under the 2014 Incentive Plan as of June 30, 2018 and 2017.

The Company classifies share-based compensation for employees with “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 for the three- and six-month periods ended June 30, 2018:

	Three months ended				Six Months Ended
	June 30, 2018				June 30, 2018
	Number of Restricted Shares		Weighted Average Grant Date Fair Value		Number of Restricted Shares			Weighted Average Grant Date Fair Value
Nonvested at beginning of period		24,182	$	16.78		42,138		$	15.60
Granted		16,510		22.51		16,510			22.51
Vested		—		—		(17,956	)		14.01
Forfeited		—		—		—			—
Nonvested at end of period		40,692	$	19.11		40,692		$	19.11

The following is a summary of the status of the Company’s awarded restricted shares as of June 30, 2018:

At June 30, 2018
Date of Award	Shares		Remaining Expense		Remaining Vesting Period (Years)
January 15, 2016		6,160	$	54		2.50
March 11, 2016		5,256		16		0.50
March 20, 2017		7,814		81		1.50
March 20, 2017		4,952		93		3.50
April 10, 2018		8,294		145		2.50
April 10, 2018		8,216		169		4.50
		40,692	$	558		2.58

During the six months ended June 30, 2018, the Company recorded $129 of share-based compensation expense and $144 of director retainer fees for shares granted under the 2014 Incentive Plan. At June 30, 2018, the total compensation cost related to unvested awards not yet recognized is $558, which is expected to be recognized over the weighted average remaining life of the grants of 2.58 years.

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Fair Value Measurement

6 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurement

(13) Fair Value Measurement

The Company uses a fair value hierarchy to measure fair value. This hierarchy describes three levels of inputs that may be used to measure fair value. 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.

Debt 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’s equity securities are not actively traded in an open market. The fair values of these equity securities available for sale is determined by using market data inputs for similar securities that are observable (Level 2 inputs).

The fair value of the 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. The changes in fair value of these assets/liabilities had no impact on net income or comprehensive income.

Impaired loans: The Company has measured impairment on impaired loans generally 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 ageof 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 as a Level 3 measurement.

Other real estate owned: OREO is carried at the lower of cost or fair value, which is measured at the date of 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 in the table below.

	Fair Value Measurements at June 30, 2018 Using:
Assets:	(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	$	—	$	29,399	$	—
Obligations of states and political subdivisions		—		117,648		—
Mortgage-backed securities in government sponsored entities		—		83,966		—
Total securities available for sale		—		231,013		—
Equity securities in financial institutions		—		907		—
Swap asset		—		2,375		—
Liabilities measured at fair value on a recurring basis:
Swap liability		—		2,375		—
Assets measured at fair value on a nonrecurring basis:
Impaired loans	$	—	$	—	$	1,350

	Fair Value Measurements at December 31, 2017 Using:
Assets:	(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	$	—	$	30,358	$	—
Obligations of states and political subdivisions		—		118,056		—
Mortgage-backed securities in government sponsored entities		—		81,816		—
Total securities available for sale		—		230,230		—
Equity securities in financial institutions		—		832		—
Swap asset		—		1,560		—
Liabilities measured at fair value on a recurring basis:
Swap liability		—		1,560		—
Assets measured at fair value on a nonrecurring basis:
Impaired loans	$	—	$	—	$	1,040
Other real estate owned		—		—		16

The following table presents quantitative information about the Level 3 significant unobservable inputs for assets and liabilities measured at fair value on a nonrecurring basis at June 30, 2018.

	Quantitative Information about Level 3 Fair Value Measurements
June 30, 2018	Fair Value		Valuation Technique	Unobservable Input	Range	Weighted Average
Impaired loans	$	1,350	Appraisal of collateral	Appraisal adjustments	10% - 38%	30%
				Liquidation expense	0% - 10%	3%
				Holding period	0 - 30 months	21 months

The following table 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, 2017.

	Quantitative Information about Level 3 Fair Value Measurements
December 31, 2017	Fair Value		Valuation Technique	Unobservable Input	Range	Weighted Average
Impaired loans	$	1,040	Appraisal of collateral	Appraisal adjustments	0% - 30%	16%
				Liquidation expense	0% - 10%	8%
				Holding period	0 - 30 months	20 months
Other real estate owned	$	16	Appraisal of collateral	Appraisal adjustments	10% - 30%	10%
				Liquidation expense	0% - 10%	10%

The methods of determining the fair value of assets and liabilities presented in the note are consistent with our methodologies disclosed in the Company’s 2017 Form 10-K, except for the valuation of loans held for investment which was impacted by the adoption of ASU 2016-01.  In accordance with ASU 2016-01, the fair value of loans held for investment, excluding impaired loans measured at fair value on a non-recurring basis, is estimated using discounted cash flow analyses.  The discount rates used to determine fair value use interest rate spreads that reflect factors such as liquidity, credit and nonperformance risk of the loans.  Loans are considered a Level 3 classification.

The carrying amount and fair values of financial instruments not measured at fair value on a recurring or nonrecurring basis at June 30, 2018 are as follows:

June 30, 2018	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from financial institutions	$	41,156	$	41,156	$	41,156	$	—	$	—
Other securities		14,247		14,247		14,247		—		—
Loans, held for sale		4,058		4,058		4,058		—		—
Loans		1,167,165		1,161,845		—		—		1,161,845
Bank owned life insurance		25,411		25,411		25,411		—		—
Accrued interest receivable		4,489		4,489		4,489		—		—
Financial Liabilities:
Nonmaturing deposits		1,006,836		1,006,836		1,006,836		—		—
Time deposits		139,336		138,624		—		—		138,624
Short-term FHLB advances		151,200		151,200		151,200		—		—
Long-term FHLB advances		5,000		4,996		—		—		4,996
Securities sold under agreement to repurchase		14,230		14,230		14,230		—		—
Subordinated debentures		29,427		32,312		—		—		32,312
Accrued interest payable		102		102		102		—		—

The carrying amount and fair values of financial instruments not measured at fair value on a recurring or nonrecurring basis at December 31, 2017 are as follows:

December 31, 2017	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from financial institutions	$	40,519	$	40,519	$	40,519	$	—	$	—
Loans, held for sale		2,197		2,197		2,197		—		—
Loans		1,151,527		1,146,969		—		—		1,146,969
Other securities		14,247		14,247		14,247		—		—
Bank owned life insurance		25,125		25,125		25,125		—		—
Accrued interest receivable		4,488		4,488		4,488		—		—
Financial Liabilities:
Nonmaturing deposits		981,021		981,021		981,021		—		—
Time deposits		223,902		223,626		—		—		223,626
Short-term FHLB advances		56,900		56,900		56,900		—		—
Long-term FHLB advances		15,000		14,964		—		—		14,964
Securities sold under agreement to repurchase		21,755		21,755		21,755		—		—
Subordinated debentures		29,427		31,052		—		—		31,052
Accrued interest payable		410		410		410		—		—

Cash and due from financial institutions: The carrying amounts for cash and due from financial institutions approximate fair value because they have original maturities of less than 90 days and do not present unanticipated credit concerns.

Other securities: The carrying value of regulatory stock approximates fair value based on applicable redemption provisions.

Loans, held-for-sale: Loans held for sale are priced individually at market rates on the day that the loan is locked for commitment to an investor. Because the holding period of such loans is typically short, the carrying value generally approximates the fair value at the time the commitment is received. All loans inthe held-for-sale account conform to Fannie Mae underwriting guidelines, with specific intent of the loan being purchased by an investor at the predetermined rate structure.

Loans, net of allowance for loan losses: Fair values for loans, other than impaired, are estimated for portfolios of loans with similar financial characteristics. The fair value of performing loans has been estimated by discounting expected future cash flows of the underlying portfolios. The discount rates used in these calculations are generally derived from the treasury yield curve and are calculated by discounting scheduled cash flows through the estimated maturity using estimated market discount rates that reflect the credit and interest rate inherent in the loan. The estimated maturity is based on the Company’s historical experience with repayments for each loan classification. Changes in these significant unobservable inputs used in discounted cash flow analysis, such as the discount rate or prepayment speeds, could lead to changes in the underlying fair value.

Bank owned life insurance: The carrying value of bank owned life insurance approximates the fair value based on applicable redemption provisions.

Accrued interest receivable and payable and securities sold under agreements to repurchase: The carrying amounts for accrued interest receivable, accrued interest payable and securities sold under agreements to repurchase approximate fair value because they are generally received or paid in 90 days or less and do not present unanticipated credit concerns.

Deposits: The fair value of deposits with no stated maturity, such as noninterest-bearing demand deposits, savings and NOW accounts, and money market accounts, is equal to the amount payable on demand.

The fair value of certificates of deposit is based on the discounted value of contractual cash flows. The discount rate is estimated using the market rates currently offered for deposits of similar remaining maturities.

The deposits’ fair value estimates do not include the benefit that results from the low-cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the market, commonly referred to as the core deposit intangible.

Federal Home Loan Bank (“FHLB”) advances: Rates available to the Company for borrowed funds with similar terms and remaining maturities are used to estimate the fair value of borrowed funds.

Subordinated debentures: The fair value of subordinated debentures is based on the discounted value of contractual cash flows of the underlying debt agreements. The discount rate is estimated using the current rate for the borrowing from the FHLB with the most similar terms.

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Derivative Hedging Instruments

6 Months Ended

Jun. 30, 2018

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Hedging Instruments

(14) Derivative Hedging Instruments

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 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.

The following table summarizes the Company’s interest rate swap positions and the impact of a 1 basis point change in interest rates as of June 30, 2018.

	Notional Amount			Weighted Average Rate Received/(Paid)			Impact of a 1 basis point change in interest rates			Repricing Frequency
Derivative Assets	$	90,250			5.25	%	$	48		Monthly
Derivative Liabilities		(90,250	)		-5.25	%		(48	)	Monthly
Net Exposure	$	—					$	—

The following table summarizes the Company’s interest rate swap positions and the impact of a 1 basis point change in interest rates as of December 31, 2017.

	Notional Amount			Weighted Average Rate Received/(Paid)			Impact of a 1 basis point change in interest rates			Repricing Frequency
Derivative Assets	$	66,227			5.08	%	$	36		Monthly
Derivative Liabilities		(66,227	)		-5.08	%		(36	)	Monthly
Net Exposure	$	—					$	—

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.

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Qualified Affordable Housing Project Investments

6 Months Ended

Jun. 30, 2018

Federal Home Loan Banks [Abstract]

Qualified Affordable Housing Project Investments

(15) Qualified Affordable Housing Project Investments

The Company invests in certain qualified affordable housing projects. At June 30, 2018 and December 31, 2017, the balance of the investment for qualified affordable housing projects was $3,792 and $3,204, 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 $3,664 and $4,510 at June 30, 2018 and December 31, 2017, respectively.

During the six months ended June 30, 2018 and 2017, the Company recognized amortization expense with respect to its investments in qualified affordable housing projects of $258 and $165, offset by tax credits and other benefits from its investment in affordable housing tax credits of $426 and $276, respectively.During the three months ended June 30, 2018 and 2017, the Company recognized amortization expense with respect to its investments in qualified affordable housing projects of $129 and $82, offset by tax credits and other benefits from its investment in affordable housing tax credits of $207 and $138, respectively. During the three and six months ended June 30, 2018 and 2017, the Company did not incur impairment losses related to its investment in qualified affordable housing projects.

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Revenue Recognition

6 Months Ended

Jun. 30, 2018

Revenue From Contract With Customer [Abstract]

Revenue Recognition

(16) Revenue Recognition

On January 1, 2018, the Company adopted ASU No. 2014-09 “Revenue from Contracts with Customers” (Topic 606) and all subsequent ASUs that modified Topic 606. As stated in Note 2 Significant Accounting Policies, the implementation of the new standard did not have a material impact on the measurement or recognition of revenue; as such, a cumulative effect adjustment to opening retained earnings was not deemed necessary. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts were not adjusted and continue to be reported in accordance with our historic accounting under Topic 605.

Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. 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. Topic 606 is applicable to noninterest revenue streams such as trust and asset management income, deposit related fees, interchange fees, merchant income, and annuity and insurance commissions. However, the recognition of these revenue streams did not change significantly upon adoption of Topic 606. Substantially all of the Company’s revenue is generated from contracts with customers. Noninterest revenue streams in-scope of Topic 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 three- and six-months ended June 30, 2018 and 2017.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Noninterest Income
In-scope of Topic 606:
Service charges	$	1,359	$	1,387	$	2,493	$	2,432
ATM/Interchange fees		588		567		1,142		1,076
Wealth management fees		836		738		1,688		1,445
Tax refund processing fees		550		550		2,750		2,750
Other		228		174		448		367
Noninterest Income (in-scope of Topic 606)		3,561		3,416		8,521		8,070
Noninterest Income (out-of-scope of Topic 606)		829		685		1,485		1,167
Total Noninterest Income	$	4,390	$	4,101	$	10,006	$	9,237

Contract Balances

A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transactional activity, or standard month-end revenue accruals such as asset management fees based on month-end market values. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of June 30, 2018 and December 31, 2017, the Company did not have any significant contract balances.

Contract Acquisition Costs

In connection with the adoption of Topic 606, an entity is required to capitalize, and subsequently amortize into expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. Upon adoption of Topic 606, the Company did not capitalize any contract acquisition cost.

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Merger

6 Months Ended

Jun. 30, 2018

Business Combinations [Abstract]

Merger

(17) Merger

On March 11, 2018, CBI and United Community Bancorp (“UCB”) and United Community Bank (“United Community”) entered into an Agreement and Plan of Merger (the “Merger Agreement”) with UCB and United Community, pursuant to which CBI will acquire UCB and its wholly-owned subsidiary, United Community.  It is anticipated that United Community will be merged with and into Civista, upon completion of the transaction.  At that time, United Community’s eight banking offices located in Southeastern Indiana, and its Loan Production office in Northern Kentucky, will become offices of Civista.As of December 31, 2017, UCB and United Community Bank had total consolidated assets of $546 million, total loans of $296 million and total deposits of $462 million.

Under the terms of the Merger Agreement, for each share of UCB common stock issued and outstanding,UCB shareholders have the right to receive 1.027 CBI common shares and $2.54 in cash, as each of those terms is defined in the Merger Agreement.  In addition, CBI has agreed to cash out all of the 212,563 outstanding UCB stock options for an amount equal to the difference between $26.22 per share and the exercise price of the stock options.  The aggregate cash consideration to be paid by CBI in respect of the outstanding UCB common shares and the cash-out of outstanding UCB stock options is approximately $13.6 million.

Regulatory approval has been received and the merger is anticipated to be completed during the third quarter of 2018, subject to the satisfaction of the closing conditions in the Merger Agreement.  

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Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Allowance for Loan Losses

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.  

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 financial statements and the disclosures provided, and future results could differ. The allowance for loan losses, impairment of goodwill, fair values of financial instruments, deferred taxes and pension obligations are particularly subject to change.

Income Taxes

Income Taxes: Income tax expense is based on the effective tax rate expected to be applicable for the entire year. 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.

Business Combinations

Business Combinations: At the date of acquisition the Company records the assets and liabilities of acquired companies on the Consolidated Balance Sheet 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.

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.

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. The Company is party to master netting arrangements with its financial institution counterparties; however, the Company does not offset assets and liabilities under these arrangements for financial statement presentation purposes because the Company does not currently intend to execute a setoff with its 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, usually in the form of marketable securities, is posted by the counterparty with net liability positions in accordance with contract thresholds.

Change in Accounting Principal

Change in Accounting Principal:

In January 2016, the FASB issued Accounting Standards Update (ASU) 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. This accounting standard (a) requires separate presentation of equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) on the balance sheet and measured at fair value with changes in fair value recognized in net income; (b) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (c) eliminates the requirement to disclose the fair value of financial instruments measured at amortized cost for entities that are not public business entities; (d) eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (e) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (f) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (g) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets.

The Company adopted ASU 2016-01 during the reporting period.The adoption resulted in the Company recognizing a one-time cumulative effect adjustment of $278 on January 1, 2018 between accumulated other comprehensive loss and retained earnings on the consolidated balance sheet for the fair value of the equity securities included in accumulated other comprehensive loss as of the beginning of the period.  The adjustment had no impact on net income for any prior periods presented.

On a prospective basis, the Company implemented changes to the measurement of the fair value of financial instruments using an exit price notion for disclosure purposes in Note 13 to the financial statements.  The December 31, 2017, fair value of each class of financial instruments disclosure did not utilize the exit price notion when measuring fair value and, therefore, would not be comparable to the June 30, 2018 disclosure.  The Company estimated the fair value based on guidance from ASC 820-10, Fair Value Measurements, which defines fair value as the price which would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.  There is no active observable market for sale information on community bank loans and, thus, Level 3 fair value procedures were utilized, primarily in the use of present value techniques incorporating assumptions that market participants would use in estimating fair values.  The fair value of loans held for investment, excluding impaired loans measured at fair value on a non-recurring basis, is estimated using discounted cash flow analyses.  The discount rates used to determine fair value use interest rate spreads that reflect factors such as liquidity, credit and nonperformance risk of the loans.  Loans are considered a Level 3 classification.

In March 2017, the FASB issued ASU No. 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” Under the new guidance, employers are required to present the service cost component of the net periodic benefit cost in the same income statement line item (e.g., Salaries and Benefits) as other employee compensation costs arising from services rendered during the period. In addition, only the service cost component will be eligible for capitalization in assets. Employers will present the other components of net periodic benefit cost separately (e.g., Other Noninterest Expense) from the line item that includes the service cost. ASU No. 2017-07 is effective for interim and annual reporting periods beginning after December 15, 2017. Employers will apply the guidance on the presentation of the components of net periodic benefit cost in the income statement retrospectively. The guidance limiting the capitalization of net periodic benefit cost in assets to the service cost component will be applied prospectively. The Company adopted ASU No. 2017-07 on January 1, 2018 and has retrospectively applied the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the consolidated statement of income statement of operations. Adoption of ASU No. 2017-07 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 February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The standard in this Update requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. A short-term lease is defined as one in which: (a) the lease term is 12 months or less, and (b) there is not an option to purchase the underlying asset that the lessee is reasonably certain to exercise. For short-term leases, lessees may elect to recognize lease payments over the lease term on a straight-line basis. For public business entities, such as the Company, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within those years. The amendments should be applied at the beginning of the earliest period presented using a modified retrospective approach with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is currently assessing the practical expedients it may elect at adoption, but does not anticipate the amendments will have a significant impact to the financial statements. Based on the Company’s preliminary analysis of its current portfolio, the impact to the Company’s balance sheet is estimated to result in less than a 1% increase in assets and liabilities. The Company also anticipates additional disclosures to be provided at adoption.

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. We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the Company’s consolidated financial statements.

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 a U.S. Securities and Exchange Commission (“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. 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 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20). The amendments in this Update shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. For public business entities, such as the Company, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity should apply the amendments in this Update on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Additionally, in the period of adoption, an entity should provide disclosures about a change in accounting principle. 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 July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), and Derivative and Hedging (Topic 815). The amendments in Part I of this Update change the classification analysis of certain equity-linked financial instruments (or embedded features) with down-round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down-round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. The amendments also clarify existing disclosure requirements for equity-classified instruments. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down-round feature. For freestanding equity classified financial instruments, the amendments require entities that present earnings per share (“EPS”) in accordance with Topic 260 to recognize the effect of the down-round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. Convertible instruments with embedded conversion options that have down- round features are now subject to the specialized guidance for contingent beneficial conversion features (in Subtopic 470-20, Debt—Debt with Conversion and Other Options ), including related EPS guidance (in Topic 260). The amendments in Part II of this Update recharacterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Accounting Standards Codification, to a scope exception. Those amendments do not have an accounting effect. For public business entities, such as the Company, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The amendments in Part I of this Update should be applied either retrospectively to outstanding financial instruments with a down-round feature by means of a cumulative-effect adjustment to the statement of financial position as of the beginning of the first fiscal year and interim period(s) in which the pending content that links to this paragraph is effective or retrospectively to outstanding financial instruments with a down-round feature for each prior reporting period presented in accordance with the guidance on accounting changes in paragraphs 250-10-45-5 through 45-10. The amendments in Part II of this Update do not require any transition guidance because those amendments do not have an accounting effect. 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 August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 850), the objective of which is to improve the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. In addition, the amendments in this Update make certain targeted improvements to simplify the application and disclosure of the hedge accounting guidance in current general accepted accounting principles.  For public business entities, such as the Company, the amendments in this Update are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early application is permitted in any period after issuance.  For cash flow and net investment hedges existing at the date of adoption, an entity should apply a cumulative-effect adjustment related to eliminating the separate measurement of ineffectiveness to accumulated other comprehensive income with a corresponding adjustment to the opening balance of retained earnings as of the beginning of the fiscal year that an entity adopts the amendments in this Update. The amended presentation and disclosure guidance is required only prospectively.  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 January 2018, the FASB issued ASU 2018-01, Leases (Topic 842), which provides an optional transition practical expedient to not evaluate under Topic 842 existing or expired land easements that were not previously accounted for as leases under the current lease guidance in Topic 840.  An entity that elects this practical expedient should evaluate new or modified land easements under Topic 842 beginning at the date the entity adopts Topic 842; otherwise, an entity should evaluate all existing or expired land easements in connection with the adoption of the new lease requirements in Topic 842 to assess whether they meet the definition of a lease.  The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in ASU 2016-02.  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 February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10), to clarify certain aspects of the guidance issued in ASU 2016-01.   (1) An entity measuring an equity security using the measurement alternative may change its measurement approach to a fair value method in accordance with Topic 820, Fair Value Measurement, through an irrevocable election that would apply to that security and all identical or similar investments of the same issuer.  Once an entity makes this election, the entity should measure all future purchases of identical or similar investments of the same issuer using a fair value method in accordance with Topic 820.  (2) Adjustments made under the measurement alternative are intended to reflect the fair value of the security as of the date that the observable transaction for a similar security took place.  (3) Remeasuring the entire value of forward contracts and purchased options is required when observable transactions occur on the underlying equity securities.  (4) When the fair value option is elected for a financial liability, the guidance in paragraph 825-10- 45-5 should be applied, regardless of whether the fair value option was elected under either Subtopic 815-15, Derivatives and Hedging—Embedded Derivatives, or 825-10, Financial Instruments—Overall. (5) Financial liabilities for which the fair value option is elected, the amount of change in fair value that relates to the instrument specific credit risk should first be measured in the currency of denomination when presented separately from the total change in fair value of the financial liability. Then, both components of the change in the fair value of the liability should be remeasured into the functional currency of the reporting entity using end-of-period spot rates.  (6) The prospective transition approach for equity securities without a readily determinable fair value in the amendments in Update 2016-01 is meant only for instances in which the measurement alternative is applied. For public business entities, such as the Company, the amendments in this Update are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years beginning after June 15, 2018. Public business entities with fiscal years beginning between December 15, 2017, and June 15, 2018, are not required to adopt these amendments until the interim period beginning after June 15, 2018, and public business entities with fiscal years beginning between June 15, 2018, and December 15, 2018, are not required to adopt these amendments before adopting the amendments in Update 2016-01. All entities may early adopt these amendments for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, as long as they have adopted Update 2016-01. This Update is not expected to have a significant impact on the Company’s financial statements.

In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718), which simplified the accounting for nonemployee share-based payment transactions.  The amendments in this update expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees.  The amendments in this Update improve the following areas of nonemployee share-based payment accounting; (a) the overall measurement objective, (b) the measurement date, (c) awards with performance conditions, (d) classification reassessment of certain equity-classified awards, (e) calculated value (nonpublic entities only), and (f) intrinsic value (nonpublic entities only).  The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. This Update is not expected to have a significant impact on the Company’s financial statements.

ASU 2018-10, Codification Improvements to Topic 842, Leases, represents changes to clarify, correct errors in, or make minor improvements to the Codification. The amendments in this ASU affect the amendments in ASU 2016-02, which are not yet effective, but for which early adoption upon issuance is permitted. For entities that early adopted Topic 842, the amendments are effective upon issuance of this ASU, and the transition requirements are the same as those in Topic 842. For entities that have not adopted Topic 842, the effective date and transition requirements will be the same as the effective date and transition requirements in Topic 842. This Update is not expected to have a significant impact on the Company’s financial statements.

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Securities (Tables)

6 Months Ended

Jun. 30, 2018

Investments Debt And Equity Securities [Abstract]

Available for Sale Securities

The amortized cost and fair market value of available for sale securities and the related gross unrealized gains and losses recognized in accumulated other comprehensive loss were as follows:

June 30, 2018	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury securities and obligations of U.S. government    agencies	$	29,624	$	69	$	(294	)	$	29,399
Obligations of states and political subdivisions		116,051		2,298		(701	)		117,648
Mortgage-backed securities in government sponsored entities		85,556		208		(1,798	)		83,966
Total debt securities	$	231,231	$	2,575	$	(2,793	)	$	231,013

December 31, 2017	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury securities and obligations of U.S. government    agencies	$	30,450	$	100	$	(192	)	$	30,358
Obligations of states and political subdivisions		114,002		4,226		(172	)		118,056
Mortgage-backed securities in government sponsored entities		82,098		408		(690	)		81,816
Total debt securities	$	226,550	$	4,734	$	(1,054	)	$	230,230

Fair Value of Securities by Contractual Maturity

The amortized cost and fair value of securities at June 30, 2018, by contractual maturity, is shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. Securities not due at a single maturity date, primarily mortgage-backed securities and equity securities are shown separately.

Available for sale	Amortized Cost		Fair Value
Due in one year or less	$	13,504	$	13,462
Due after one year through five years		22,556		22,415
Due after five years through ten years		29,983		30,994
Due after ten years		79,632		80,176
Mortgage-backed securities		85,556		83,966
Total securities available for sale	$	231,231	$	231,013

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:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Sale proceeds	$	—	$	—	$	—	$	—
Gross realized gains		—		—		—		—
Gross realized losses		—		—		—		—
Gains (losses) from securities called or settled by the issuer		6		—		6		—

Securities with Unrealized Losses Not Recognized in Income

Securities with unrealized losses at June 30, 2018 and December 31, 2017 not recognized in income are as follows:

June 30, 2018	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	$	15,172	$	(159	)	$	11,366	$	(135	)	$	26,538	$	(294	)
Obligations of states and political subdivisions		27,449		(448	)		7,453		(253	)		34,902		(701	)
Mortgage-backed securities in gov’t sponsored entities		57,043		(1,027	)		19,721		(771	)		76,764		(1,798	)
Total temporarily impaired	$	99,664	$	(1,634	)	$	38,540	$	(1,159	)	$	138,204	$	(2,793	)

December 31, 2017	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	$	20,449	$	(100	)	$	6,617	$	(92	)	$	27,066	$	(192	)
Obligations of states and political subdivisions		4,057		(41	)		7,309		(131	)		11,366		(172	)
Mortgage-backed securities in gov’t sponsored entities		29,534		(195	)		22,199		(495	)		51,733		(690	)
Total temporarily impaired	$	54,040	$	(336	)	$	36,125	$	(718	)	$	90,165	$	(1,054	)

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 for the three and six-months ended June 30, 2018, and the portion of unrealized gains and losses for the period that relates to equity investments held at June 30, 2018:

	Three months ended		Six months ended
	June 30, 2018		June 30, 2018
Net gains recognized on equity securities during the    period	$	35	$	75
Less: Net gains (losses) realized on the sale of equity securities    during the period		—		—
Unrealized gains recognized in equity securities held at    reporting date	$	35	$	75

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Loans (Tables)

6 Months Ended

Jun. 30, 2018

Receivables [Abstract]

Loan Balances

Loan balances were as follows:

	June 30, 2018			December 31, 2017
Commercial & Agriculture	$	153,742		$	152,473
Commercial Real Estate- Owner Occupied		169,745			164,099
Commercial Real Estate- Non-Owner Occupied		431,095			425,623
Residential Real Estate		271,207			268,735
Real Estate Construction		100,812			97,531
Farm Real Estate		37,845			39,461
Consumer and Other		15,586			16,739
Total loans		1,180,032			1,164,661
Allowance for loan losses		(12,867	)		(13,134	)
Net loans	$	1,167,165		$	1,151,527

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Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2018

Text Block [Abstract]

Changes in the Allowance for Loan Losses

The following tables present, by portfolio segment, the changes in the allowance for loan losses for the three and six months ended June 30, 2018 and 2017.

Allowance for loan losses:

For the six months ended June 30, 2018	Beginningbalance		Charge-offs			Recoveries		Provision			Ending Balance
Commercial & Agriculture	$	1,562	$	(248	)	$	104	$	212		$	1,630
Commercial Real Estate:
Owner Occupied		2,043		(193	)		130		181			2,161
Non-Owner Occupied		5,307		(45	)		21		(148	)		5,135
Residential Real Estate		1,910		(62	)		93		(250	)		1,691
Real Estate Construction		834		—			—		27			861
Farm Real Estate		430		—			3		(23	)		410
Consumer and Other		290		(103	)		33		80			300
Unallocated		758		—			—		(79	)		679
Total	$	13,134	$	(651	)	$	384	$	—		$	12,867

Allowance for loan losses:

For the six months ended June 30, 2017	Beginning balance		Charge-offs			Recoveries		Provision			Ending Balance
Commercial & Agriculture	$	2,018	$	(1	)	$	83	$	(492	)	$	1,608
Commercial Real Estate:
Owner Occupied		2,171		(210	)		18		31			2,010
Non-Owner Occupied		4,606		—			9		124			4,739
Residential Real Estate		3,089		(196	)		87		(304	)		2,676
Real Estate Construction		420		—			19		43			482
Farm Real Estate		442		—			—		(17	)		425
Consumer and Other		314		(81	)		14		77			324
Unallocated		245		—			—		538			783
Total	$	13,305	$	(488	)	$	230	$	—		$	13,047

Allowance for loan losses:

For the three months ended June 30, 2018	Beginning balance		Charge-offs			Recoveries		Provision			Ending Balance
Commercial & Agriculture	$	1,359	$	(123	)	$	85	$	309		$	1,630
Commercial Real Estate:
Owner Occupied		2,030		—			121		10			2,161
Non-Owner Occupied		5,670		(1	)		7		(541	)		5,135
Residential Real Estate		1,750		(40	)		35		(54	)		1,691
Real Estate Construction		820		—			—		41			861
Farm Real Estate		411		—			2		(3	)		410
Consumer and Other		247		(62	)		29		86			300
Unallocated		527		—			—		152			679
Total	$	12,814	$	(226	)	$	279	$	—		$	12,867

Allowance for loan losses:

For the three months ended June 30, 2017	Beginning balance		Charge-offs			Recoveries		Provision			Ending Balance
Commercial & Agriculture	$	1,569	$	—		$	27	$	12		$	1,608
Commercial Real Estate:
Owner Occupied		2,259		(210	)		16		(55	)		2,010
Non-Owner Occupied		4,543		—			4		192			4,739
Residential Real Estate		3,022		(107	)		32		(271	)		2,676
Real Estate Construction		413		—			14		55			482
Farm Real Estate		407		—			—		18			425
Consumer and Other		354		(40	)		11		(1	)		324
Unallocated		733		—			—		50			783
Total	$	13,300	$	(357	)	$	104	$	—		$	13,047

The following tables present, by portfolio segment, the allocation of the allowance for loan losses and related loan balances as of June 30, 2018 and December 31, 2017.

June 30, 2018	Loans acquired with credit deterioration		Loans individually evaluated for impairment		Loans collectively evaluated for impairment		Total
Allowance for loan losses:
Commercial & Agriculture	$	—	$	5	$	1,625	$	1,630
Commercial Real Estate:
Owner Occupied		—		8		2,153		2,161
Non-Owner Occupied		—		—		5,135		5,135
Residential Real Estate		29		100		1,562		1,691
Real Estate Construction		—		—		861		861
Farm Real Estate		—		6		404		410
Consumer and Other		—		—		300		300
Unallocated		—		—		679		679
Total	$	29	$	119	$	12,719	$	12,867
Outstanding loan balances:
Commercial & Agriculture	$	61	$	961	$	152,720	$	153,742
Commercial Real Estate:
Owner Occupied		—		517		169,228		169,745
Non-Owner Occupied		—		39		431,056		431,095
Residential Real Estate		108		1,307		269,792		271,207
Real Estate Construction		—		—		100,812		100,812
Farm Real Estate		—		778		37,067		37,845
Consumer and Other		—		—		15,586		15,586
Total	$	169	$	3,602	$	1,176,261	$	1,180,032

December 31, 2017	Loans acquired with credit deterioration		Loans individually evaluated for impairment		Loans collectively evaluated for impairment		Total
Allowance for loan losses:
Commercial & Agriculture	$	82	$	4	$	1,476	$	1,562
Commercial Real Estate:
Owner Occupied		—		6		2,037		2,043
Non-Owner Occupied		—		—		5,307		5,307
Residential Real Estate		44		109		1,757		1,910
Real Estate Construction		—		—		834		834
Farm Real Estate		—		6		424		430
Consumer and Other		—		—		290		290
Unallocated		—		—		758		758
Total	$	126	$	125	$	12,883	$	13,134
Outstanding loan balances:
Commercial & Agriculture	$	87	$	438	$	151,948	$	152,473
Commercial Real Estate:
Owner Occupied		—		1,010		163,089		164,099
Non-Owner Occupied		—		44		425,579		425,623
Residential Real Estate		128		1,360		267,247		268,735
Real Estate Construction		—		—		97,531		97,531
Farm Real Estate		—		608		38,853		39,461
Consumer and Other		—		—		16,739		16,739
Total	$	215	$	3,460	$	1,160,986	$	1,164,661

Credit Exposures by Internally Assigned Grades

June 30, 2018	Pass		Special Mention		Substandard		Doubtful		Ending Balance
Commercial & Agriculture	$	148,387	$	2,297	$	3,058	$	—	$	153,742
Commercial Real Estate:
Owner Occupied		163,160		1,256		5,329		—		169,745
Non-Owner Occupied		428,084		2,288		723		—		431,095
Residential Real Estate		60,275		1,831		5,091		—		67,197
Real Estate Construction		91,406		14		1,289		—		92,709
Farm Real Estate		29,816		5,079		2,950		—		37,845
Consumer and Other		1,272		—		14		—		1,286
Total	$	922,400	$	12,765	$	18,454	$	—	$	953,619

December 31, 2017	Pass		Special Mention		Substandard		Doubtful		Ending Balance
Commercial & Agriculture	$	140,842	$	8,412	$	3,219	$	—	$	152,473
Commercial Real Estate:
Owner Occupied		155,756		1,166		7,177		—		164,099
Non-Owner Occupied		422,363		2,321		939		—		425,623
Residential Real Estate		62,628		1,997		5,873		—		70,498
Real Estate Construction		91,545		15		27		—		91,587
Farm Real Estate		25,228		11,236		2,997		—		39,461
Consumer and Other		1,312		—		70		—		1,382
Total	$	899,674	$	25,147	$	20,302	$	—	$	945,123

Performing and Nonperforming Loans

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.

June 30, 2018	Residential Real Estate		Real Estate Construction		Consumer and Other		Total
Performing	$	204,010	$	8,103	$	14,266	$	226,379
Nonperforming		—		—		34		34
Total	$	204,010	$	8,103	$	14,300	$	226,413

December 31, 2017	Residential Real Estate		Real Estate Construction		Consumer and Other		Total
Performing	$	198,237	$	5,944	$	15,341	$	219,522
Nonperforming		—		—		16		16
Total	$	198,237	$	5,944	$	15,357	$	219,538

Aging Analysis of Past Due Loans

The following tables include an aging analysis of the recorded investment of past due loans outstanding as of June 30, 2018 and December 31, 2017.

June 30, 2018	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	$	186	$	—	$	663	$	849	$	152,832	$	61	$	153,742	$	—
Commercial Real Estate:
Owner Occupied		176		195		452		823		168,922		—		169,745		—
Non-Owner Occupied		—		—		155		155		430,940		—		431,095		—
Residential Real Estate		440		307		533		1,280		269,819		108		271,207		—
Real Estate Construction		—		—		27		27		100,785		—		100,812		—
Farm Real Estate		149		78		181		408		37,437		—		37,845		—
Consumer and Other		123		22		39		184		15,402		—		15,586		34
Total	$	1,074	$	602	$	2,050	$	3,726	$	1,176,137	$	169	$	1,180,032	$	34

December 31, 2017	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	$	575	$	2	$	685	$	1,262	$	151,124	$	87	$	152,473	$	—
Commercial Real Estate:
Owner Occupied		897		104		484		1,485		162,614		—		164,099		—
Non-Owner Occupied		133		—		470		603		425,020		—		425,623		—
Residential Real Estate		1,613		229		785		2,627		265,980		128		268,735		—
Real Estate Construction		—		—		27		27		97,504		—		97,531		—
Farm Real Estate		27		—		186		213		39,248		—		39,461		—
Consumer and Other		92		96		16		204		16,535		—		16,739		16
Total	$	3,337	$	431	$	2,653	$	6,421	$	1,158,025	$	215	$	1,164,661	$	16

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 June 30, 2018 and December 31, 2017.

	June 30, 2018		December 31, 2017
Commercial & Agriculture	$	856	$	887
Commercial Real Estate:
Owner Occupied		810		1,476
Non-Owner Occupied		252		711
Residential Real Estate		2,261		2,778
Real Estate Construction		27		27
Farm Real Estate		181		186
Consumer and Other		11		67
Total	$	4,398	$	6,132

Schedule of Troubled Debt Restructurings

Loan modifications that are considered TDRs completed during the periods ended June 30, 2018 and June 30, 2017 were as follows:

	For the Six-Month Period Ended
	June 30, 2018
	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial & Agriculture		3	$	591	$	591
Commercial Real Estate—Owner Occupied		—		—		—
Commercial Real Estate—Non-Owner Occupied		—		—		—
Residential Real Estate		—		—		—
Real Estate Construction		—		—		—
Farm Real Estate		—		—		—
Consumer and Other		—		—		—
Total Loan Modifications		3	$	591	$	591

	For the Six-Month Period Ended
	June 30, 2017
	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial & Agriculture		—	$	—	$	—
Commercial Real Estate—Owner Occupied		—		—		—
Commercial Real Estate—Non-Owner Occupied		—		—		—
Residential Real Estate		1		13		13
Real Estate Construction		—		—		—
Farm Real Estate		—		—		—
Consumer and Other		—		—		—
Total Loan Modifications		1	$	13	$	13

	For the three months ended
	June 30, 2018
	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial & Agriculture		—	$	—	$	—
Commercial Real Estate—Owner Occupied		—		—		—
Commercial Real Estate—Non-Owner Occupied		—		—		—
Residential Real Estate		—		—		—
Real Estate Construction		—		—		—
Farm Real Estate		—		—		—
Consumer and Other		—		—		—
Total Loan Modifications		—	$	—	$	—

	For the three months ended
	June 30, 2017
	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial & Agriculture		—	$	—	$	—
Commercial Real Estate—Owner Occupied		—		—		—
Commercial Real Estate—Non-Owner Occupied		—		—		—
Residential Real Estate		1		13		13
Real Estate Construction		—		—		—
Farm Real Estate		—		—		—
Consumer and Other		—		—		—
Total Loan Modifications		1	$	13	$	13

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 June 30, 2018 and December 31, 2017.

	June 30, 2018						December 31, 2017
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:
Commercial & Agriculture	$	571	$	571			$	—	$	—
Commercial Real Estate:
Owner Occupied		207		207				693		913
Non-Owner Occupied		39		43				44		48
Residential Real Estate		937		1,009				977		1,049
Farm Real Estate		328		328				148		148
Consumer and Other		—		—				—		—
Total		2,082		2,158				1,862		2,158
With an allowance recorded:
Commercial & Agriculture		390		390	$	5		438		438	$	4
Commercial Real Estate:
Owner Occupied		310		310		8		317		317		6
Non-Owner Occupied		—		—		—		—		—		—
Residential Real Estate		370		374		100		383		387		109
Farm Real Estate		450		450		6		460		460		6
Total		1,520		1,524		119		1,598		1,602		125
Total:
Commercial & Agriculture		961		961		5		438		438		4
Commercial Real Estate:
Owner Occupied		517		517		8		1,010		1,230		6
Non-Owner Occupied		39		43		—		44		48		—
Residential Real Estate		1,307		1,383		100		1,360		1,436		109
Farm Real Estate		778		778		6		608		608		6
Consumer and Other		—		—		—		—		—		—
Total	$	3,602	$	3,682	$	119	$	3,460	$	3,760	$	125

The following table includes the average recorded investment and interest income recognized for impaired financing receivables for the three- and six-month periods ended June 30, 2018 and 2017.

	June 30, 2018				June 30, 2017
For the six months ended	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial & Agriculture	$	808	$	13	$	1,756	$	20
Commercial Real Estate—Owner Occupied		686		17		1,829		48
Commercial Real Estate—Non-Owner Occupied		42		3		357		3
Residential Real Estate		1,334		34		1,610		39
Real Estate Construction		—		—		—		—
Farm Real Estate		726		15		614		13
Consumer and Other		—		—		—		—
Total	$	3,596	$	82	$	6,166	$	123

	June 30, 2018				June 30, 2017
For the three months ended:	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial & Agriculture	$	993	$	6	$	1,643	$	6
Commercial Real Estate—Owner Occupied		524		8		1,795		26
Commercial Real Estate—Non-Owner Occupied		41		2		356		2
Residential Real Estate		1,321		17		1,572		19
Real Estate Construction		—		—		—		—
Farm Real Estate		785		8		614		7
Consumer and Other		—		—		—		—
Total	$	3,664	$	41	$	5,980	$	60

Schedule of Changes in Amortized Yield for PCI Loans

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

	For the Six-Month Period Ended June 30, 2018			For the Six-Month Period Ended June 30, 2017
	(In Thousands)			(In Thousands)
Balance at beginning of period	$	15		$	49
Acquisition of PCI loans		—			—
Accretion		(9	)		(18	)
Balance at end of period	$	6		$	31

	For the Three-Month Period Ended June 30, 2018			For the Three-Month Period Ended June 30, 2017
	(In Thousands)			(In Thousands)
Balance at beginning of period	$	8		$	40
Acquisition of PCI loans		—			—
Accretion		(2	)		(9	)
Balance at end of period	$	6		$	31

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 June 30, 2018		At December 31, 2017
	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	$	720	$	775
Carrying amount		169		215

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Other Comprehensive Income (Tables)

6 Months Ended

Jun. 30, 2018

Equity [Abstract]

Changes in Each Component of Accumulated Other Comprehensive Income (Loss), Net of Tax

The following table presents the changes in each component of accumulated other comprehensive income (loss), net of tax. 

	For the Six-Month Period Ended									For the Six-Month Period Ended
	June 30, 2018(a)									June 30, 2017(a)
	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	$	3,185		$	(4,309	)	$	(1,124	)	$	2,008	$	(4,345	)	$	(2,337	)
Other comprehensive income before reclassifications		(3,085	)		—			(3,085	)		1,258		—			1,258
Amounts reclassified from accumulated other    comprehensive loss		5			226			231			—		343			343
Net current-period other comprehensive income		(3,080	)		226			(2,854	)		1,258		343			1,601
Reclassification of equity securities from accumulated    other comprehensive loss		(278	)		—			(278	)		—		—			—
Ending balance	$	(173	)	$	(4,083	)	$	(4,256	)	$	3,266	$	(4,002	)	$	(736	)

(a) Amounts in parentheses indicate debits on the consolidated balance sheets.

The following table presents the changes in each component of accumulated other comprehensive income (loss), net of tax.

	For the Three-Month Period Ended									For the Three-Month Period Ended
	June 30, 2018(a)									June 30, 2017(a)
	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	$	368		$	(4,196	)	$	(3,828	)	$	2,307	$	(4,283	)	$	(1,976	)
Other comprehensive income before reclassifications		(546	)		—			(546	)		959		—			959
Amounts reclassified from accumulated other    comprehensive loss		5			113			118			—		281			281
Net current-period other comprehensive income		(541	)		113			(428	)		959		281			1,240
Ending balance	$	(173	)	$	(4,083	)	$	(4,256	)	$	3,266	$	(4,002	)	$	(736	)

(a) Amounts in parentheses indicate debits on the consolidated balance sheets.

Amounts Reclassified Out of Each Component of Accumulated Other Comprehensive Income (Loss)

The following table presents the amounts reclassified out of each component of accumulated other comprehensive income (loss).

	Amount Reclassified from Accumulated Other Comprehensive Income (Loss) (a)
Details about Accumulated Other Comprehensive (Loss) Components	For the Six months ended June 30, 2018			For the Six months ended June 30, 2017			Affected Line Item in the Statement Where Net Income is Presented
Unrealized gains and losses on available-for-sale securities	$	(6	)	$	—		Net (gain) loss on securities    available for sale
Tax effect		1			—		Income tax expense
		(5	)		—		Net of tax
Amortization of defined benefit pension items
Actuarial gains/(losses) (b)		(286	)		(520	)	Salaries, wages and benefits
Tax effect		60			177		Income tax expense
		(226	)		(343	)	Net of tax
Total reclassifications for the period	$	(231	)	$	(343	)	Net of tax

The following table presents the amounts reclassified out of each component of accumulated other comprehensive income (loss).

	Amount Reclassified from Accumulated Other Comprehensive Income (Loss) (a)
Details about Accumulated Other Comprehensive (Loss) Components	For the Three months ended June 30, 2018			For the Three months ended June 30, 2017			Affected Line Item in the Statement Where Net Income is Presented
Unrealized gains and losses on available-for-sale securities	$	(6	)	$	—		Net (gain) loss on securities    available for sale
Tax effect		1			—		Income tax expense
		(5	)		—		Net of tax
Amortization of defined benefit pension items
Actuarial gains/(losses) (b)		(143	)		(426	)	Other operating expenses
Tax effect		30			145		Income tax expense
		(113	)		(281	)	Net of tax
Total reclassifications for the period	$	(118	)	$	(281	)	Net of tax

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

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

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Goodwill and Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2018

Goodwill And Intangible Assets Disclosure [Abstract]

Schedule of Acquired Intangible Assets, Other than Goodwill

Acquired intangible assets, other than goodwill, as of June 30, 2018 and December 31, 2017 were as follows:

	2018						2017
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Amortized intangible assets(1):
MSRs	$	1,134	$	364	$	770	$	1,065	$	322	$	743
Core deposit intangibles		7,274		6,797		477		7,274		6,738		536
Total amortized intangible assets	$	8,408	$	7,161	$	1,247	$	8,339	$	7,060	$	1,279

(1) Excludes fully amortized intangible assets

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
2018	$	21	$	52	$	73
2019		42		88		130
2020		42		72		114
2021		42		68		110
2022		42		68		110
Thereafter		581		129		710
	$	770	$	477	$	1,247

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Short-Term Borrowings (Tables)

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Summary of Federal Funds Purchased and Other Short-term Borrowings are Included in Federal Home Loan Bank Advances on Consolidated Balance Sheets

Short-term borrowings, which consist of federal funds purchased and other short-term borrowings are included in Federal Home Loan Bank advances on the Consolidated Balance Sheets and are summarized as follows:

	At June 30, 2018					At December 31, 2017
	Federal Funds Purchased		Short-term Borrowings			Federal Funds Purchased			Short-term Borrowings
Outstanding balance	$	—	$	151,200		$	—		$	56,900
Maximum indebtedness		—		153,600			20,000			115,050
Average balance		—		64,241			119			38,825
Average rate paid		—		1.78	%		1.68	%		1.12	%
Interest rate on balance		—		1.92	%		—			1.42	%

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 June 30, 2018 and December 31, 2017. All of the repurchase agreements are overnight agreements.

	June 30, 2018		December 31, 2017
Securities pledged for repurchase agreements:
U.S. Treasury securities	$	632	$	874
Obligations of U.S. government agencies		13,598		20,881
Total securities pledged	$	14,230	$	21,755
Gross amount of recognized liabilities for repurchase agreements	$	14,230	$	21,755
Amounts related to agreements not included in offsetting    disclosures above	$	—	$	—

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Earnings per Common Share (Tables)

6 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings per Common Share

Diluted earnings per common share include the dilutive effect, if any, of additional potential common shares issuable under the Company’s equity incentive plan, computed using the treasury stock method, and the impact of the Company’s convertible preferred stock using the “if converted” method.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Basic
Net income	$	3,014	$	3,596	$	10,003	$	8,231
Preferred stock dividends		299		308		602		627
Net income available to common shareholders—basic	$	2,715	$	3,288	$	9,401	$	7,604
Weighted average common shares outstanding—basic		10,470,839		10,162,528		10,342,763		9,634,363
Basic earnings per common share	$	0.26	$	0.32	$	0.91	$	0.79
Diluted
Net income available to common shareholders—basic	$	2,715	$	3,288	$	9,401	$	7,604
Preferred stock dividends		299		308		602		627
Net income available to common shareholders—diluted	$	3,014	$	3,596	$	10,003	$	8,231
Weighted average common shares outstanding for basic    earnings per common share		10,470,839		10,162,528		10,342,763		9,634,363
Add: Dilutive effects of convertible preferred shares		2,144,497		2,431,349		2,263,652		2,469,465
Average shares and dilutive potential common shares    outstanding—diluted		12,615,336		12,593,877		12,606,415		12,103,828
Diluted earnings per common share	$	0.24	$	0.29	$	0.79	$	0.68

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Commitments, Contingencies and Off-Balance Sheet Risk (Tables)

6 Months Ended

Jun. 30, 2018

Commitments And Contingencies Disclosure [Abstract]

Contractual Amounts of Financial Instruments with Off-Balance-Sheet Risk

The contractual amounts of financial instruments with off-balance-sheet risk were as follows for June 30, 2018 and December 31, 2017:

	Contract Amount
	June 30, 2018				December 31, 2017
	Fixed Rate		Variable Rate		Fixed Rate		Variable Rate
Commitment to extend credit:
Lines of credit and construction loans	$	5,457	$	278,612	$	4,982	$	286,925
Overdraft protection		3		33,682		7		33,353
Letters of credit		624		2,350		624		2,637
	$	6,084	$	314,644	$	5,613	$	322,915

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Pension Information (Tables)

6 Months Ended

Jun. 30, 2018

Compensation And Retirement Disclosure [Abstract]

Components of Net Periodic Pension Benefit

Net periodic pension benefit was as follows:

	Three months ended						Six Months Ended
	June 30,						June 30,
	2018			2017			2018			2017
Service cost	$	—		$	—		$	—		$	—
Interest cost		125			171			250			338
Expected return on plan assets		(273	)		(283	)		(546	)		(561	)
Other components		143			426			286			520
Net periodic pension benefit	$	(5	)	$	314		$	(10	)	$	297

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Equity Incentive Plan (Tables)

6 Months Ended

Jun. 30, 2018

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of Company's Restricted Stock

The following is a summary of the status of the Company’s restricted shares and changes therein for the three- and six-month periods ended June 30, 2018:

	Three months ended				Six Months Ended
	June 30, 2018				June 30, 2018
	Number of Restricted Shares		Weighted Average Grant Date Fair Value		Number of Restricted Shares			Weighted Average Grant Date Fair Value
Nonvested at beginning of period		24,182	$	16.78		42,138		$	15.60
Granted		16,510		22.51		16,510			22.51
Vested		—		—		(17,956	)		14.01
Forfeited		—		—		—			—
Nonvested at end of period		40,692	$	19.11		40,692		$	19.11

The following is a summary of the status of the Company’s awarded restricted shares as of June 30, 2018:

At June 30, 2018
Date of Award	Shares		Remaining Expense		Remaining Vesting Period (Years)
January 15, 2016		6,160	$	54		2.50
March 11, 2016		5,256		16		0.50
March 20, 2017		7,814		81		1.50
March 20, 2017		4,952		93		3.50
April 10, 2018		8,294		145		2.50
April 10, 2018		8,216		169		4.50
		40,692	$	558		2.58

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Fair Value Measurement (Tables)

6 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value

Assets and liabilities measured at fair value are summarized in the table below.

	Fair Value Measurements at June 30, 2018 Using:
Assets:	(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	$	—	$	29,399	$	—
Obligations of states and political subdivisions		—		117,648		—
Mortgage-backed securities in government sponsored entities		—		83,966		—
Total securities available for sale		—		231,013		—
Equity securities in financial institutions		—		907		—
Swap asset		—		2,375		—
Liabilities measured at fair value on a recurring basis:
Swap liability		—		2,375		—
Assets measured at fair value on a nonrecurring basis:
Impaired loans	$	—	$	—	$	1,350

	Fair Value Measurements at December 31, 2017 Using:
Assets:	(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	$	—	$	30,358	$	—
Obligations of states and political subdivisions		—		118,056		—
Mortgage-backed securities in government sponsored entities		—		81,816		—
Total securities available for sale		—		230,230		—
Equity securities in financial institutions		—		832		—
Swap asset		—		1,560		—
Liabilities measured at fair value on a recurring basis:
Swap liability		—		1,560		—
Assets measured at fair value on a nonrecurring basis:
Impaired loans	$	—	$	—	$	1,040
Other real estate owned		—		—		16

Quantitative Information about Level 3 Fair Value Measurements

The following table presents quantitative information about the Level 3 significant unobservable inputs for assets and liabilities measured at fair value on a nonrecurring basis at June 30, 2018.

	Quantitative Information about Level 3 Fair Value Measurements
June 30, 2018	Fair Value		Valuation Technique	Unobservable Input	Range	Weighted Average
Impaired loans	$	1,350	Appraisal of collateral	Appraisal adjustments	10% - 38%	30%
				Liquidation expense	0% - 10%	3%
				Holding period	0 - 30 months	21 months

The following table 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, 2017.

	Quantitative Information about Level 3 Fair Value Measurements
December 31, 2017	Fair Value		Valuation Technique	Unobservable Input	Range	Weighted Average
Impaired loans	$	1,040	Appraisal of collateral	Appraisal adjustments	0% - 30%	16%
				Liquidation expense	0% - 10%	8%
				Holding period	0 - 30 months	20 months
Other real estate owned	$	16	Appraisal of collateral	Appraisal adjustments	10% - 30%	10%
				Liquidation expense	0% - 10%	10%

Carrying Amount and Fair Value of Financial Instruments Not Measured at Fair Value on a Recurring or Nonrecurring Basis

The carrying amount and fair values of financial instruments not measured at fair value on a recurring or nonrecurring basis at June 30, 2018 are as follows:

June 30, 2018	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from financial institutions	$	41,156	$	41,156	$	41,156	$	—	$	—
Other securities		14,247		14,247		14,247		—		—
Loans, held for sale		4,058		4,058		4,058		—		—
Loans		1,167,165		1,161,845		—		—		1,161,845
Bank owned life insurance		25,411		25,411		25,411		—		—
Accrued interest receivable		4,489		4,489		4,489		—		—
Financial Liabilities:
Nonmaturing deposits		1,006,836		1,006,836		1,006,836		—		—
Time deposits		139,336		138,624		—		—		138,624
Short-term FHLB advances		151,200		151,200		151,200		—		—
Long-term FHLB advances		5,000		4,996		—		—		4,996
Securities sold under agreement to repurchase		14,230		14,230		14,230		—		—
Subordinated debentures		29,427		32,312		—		—		32,312
Accrued interest payable		102		102		102		—		—

The carrying amount and fair values of financial instruments not measured at fair value on a recurring or nonrecurring basis at December 31, 2017 are as follows:

December 31, 2017	Carrying Amount		Total Fair Value		Level 1		Level 2		Level 3
Financial Assets:
Cash and due from financial institutions	$	40,519	$	40,519	$	40,519	$	—	$	—
Loans, held for sale		2,197		2,197		2,197		—		—
Loans		1,151,527		1,146,969		—		—		1,146,969
Other securities		14,247		14,247		14,247		—		—
Bank owned life insurance		25,125		25,125		25,125		—		—
Accrued interest receivable		4,488		4,488		4,488		—		—
Financial Liabilities:
Nonmaturing deposits		981,021		981,021		981,021		—		—
Time deposits		223,902		223,626		—		—		223,626
Short-term FHLB advances		56,900		56,900		56,900		—		—
Long-term FHLB advances		15,000		14,964		—		—		14,964
Securities sold under agreement to repurchase		21,755		21,755		21,755		—		—
Subordinated debentures		29,427		31,052		—		—		31,052
Accrued interest payable		410		410		410		—		—

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Derivative Hedging Instruments (Tables)

6 Months Ended

Jun. 30, 2018

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Summary of Interest Rate Swap Transactions

The following table summarizes the Company’s interest rate swap positions and the impact of a 1 basis point change in interest rates as of June 30, 2018.

	Notional Amount			Weighted Average Rate Received/(Paid)			Impact of a 1 basis point change in interest rates			Repricing Frequency
Derivative Assets	$	90,250			5.25	%	$	48		Monthly
Derivative Liabilities		(90,250	)		-5.25	%		(48	)	Monthly
Net Exposure	$	—					$	—

The following table summarizes the Company’s interest rate swap positions and the impact of a 1 basis point change in interest rates as of December 31, 2017.

	Notional Amount			Weighted Average Rate Received/(Paid)			Impact of a 1 basis point change in interest rates			Repricing Frequency
Derivative Assets	$	66,227			5.08	%	$	36		Monthly
Derivative Liabilities		(66,227	)		-5.08	%		(36	)	Monthly
Net Exposure	$	—					$	—

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Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2018

Revenue From Contract With Customer [Abstract]

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 three- and six-months ended June 30, 2018 and 2017.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Noninterest Income
In-scope of Topic 606:
Service charges	$	1,359	$	1,387	$	2,493	$	2,432
ATM/Interchange fees		588		567		1,142		1,076
Wealth management fees		836		738		1,688		1,445
Tax refund processing fees		550		550		2,750		2,750
Other		228		174		448		367
Noninterest Income (in-scope of Topic 606)		3,561		3,416		8,521		8,070
Noninterest Income (out-of-scope of Topic 606)		829		685		1,485		1,167
Total Noninterest Income	$	4,390	$	4,101	$	10,006	$	9,237

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Consolidated Financial Statements - Additional Information (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2018 USD ($) Dwelling Segment
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Number of loan concentration by bank to lessors and owners of Residential Buildings and Dwellings | Dwelling	2
Number of reportable segment | Segment	1
Non Residential Buildings and Dwellings [Member]
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Amount payable to lessors	$ 301,003
Amount payable to lessors in percentage	25.40%
Residential Buildings and Dwellings [Member]
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Amount payable to lessors	$ 147,497
Amount payable to lessors in percentage	12.50%
Maximum [Member]
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Percentage of insurance commission revenue of total revenue	1.00%
Maximum [Member] | WSP [Member]
Nature Of Operations And Summary Of Significant Accounting Policies [Line Items]
Percentage of insurance commission revenue of total revenue	1.00%

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Significant Accounting Policies - Additional Information (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2018 USD ($)
Maximum [Member]
Significant Accounting Policies [Line Items]
Percentage of increase on assets due to new accounting standard updates	1.00%
Percentage of increase on liabilities due to new accounting standard updates	1.00%
Retained Earnings [Member]
Significant Accounting Policies [Line Items]
Change in accounting principle for adoption of ASU 2016-01	$ 278
Accumulated Other Comprehensive Loss [Member]
Significant Accounting Policies [Line Items]
Change in accounting principle for adoption of ASU 2016-01	$ (278)

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Securities - Available for Sale Securities (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 231,231	$ 226,550
Gross Unrealized Gains	2,575	4,734
Gross Unrealized Losses	(2,793)	(1,054)
Fair Value	231,013	230,230
U.S. Treasury Securities and Obligations of U.S. Government Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	29,624	30,450
Gross Unrealized Gains	69	100
Gross Unrealized Losses	(294)	(192)
Fair Value	29,399	30,358
Obligations of States and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	116,051	114,002
Gross Unrealized Gains	2,298	4,226
Gross Unrealized Losses	(701)	(172)
Fair Value	117,648	118,056
Mortgage-backed Securities in Government Sponsored Entities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	85,556	82,098
Gross Unrealized Gains	208	408
Gross Unrealized Losses	(1,798)	(690)
Fair Value	$ 83,966	$ 81,816

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Securities - Amortized Cost and Fair Value of Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Investments Debt And Equity Securities [Abstract]
Amortized Cost, Due in one year or less	$ 13,504
Amortized Cost, Due after one year through five years	22,556
Amortized Cost, Due after five years through ten years	29,983
Amortized Cost, Due after ten years	79,632
Amortized Cost, Mortgage-backed securities	85,556
Amortized Cost	231,231
Fair value, Due in one year or less	13,462
Fair value, Due after one year through five years	22,415
Fair value, Due after five years through ten years	30,994
Fair value, Due after ten years	80,176
Fair value, Mortgage-backed securities	83,966
Fair value, Total securities available for sale	$ 231,013	$ 230,230

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Securities - Proceeds from Sales of Securities, Gross Realized Gains and Losses (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Investments Debt And Equity Securities [Abstract]
Sale proceeds	$ 0	$ 0	$ 0	$ 0
Gross realized gains	0	0	0	0
Gross realized losses	0	$ 0	0	$ 0
Gains (losses) from securities called or settled by the issuer	$ 6		$ 6

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Securities - Additional Information (Detail) $ in Thousands	Jun. 30, 2018 USD ($) Security	Dec. 31, 2017 USD ($)
Investments Debt And Equity Securities [Abstract]
Carrying value of pledged securities | $	$ 130,506	$ 122,862
Number of securities in portfolio with unrealized losses | Security	130

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Securities - Securities with Unrealized Losses Not Recognized in Income (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Schedule of Available-for-sale Securities [Line Items]
12 Months or less, Fair Value	$ 99,664	$ 54,040
12 Months or less, Unrealized Loss	(1,634)	(336)
More than 12 months, Fair Value	38,540	36,125
More than 12 months, Unrealized Loss	(1,159)	(718)
Total Fair Value	138,204	90,165
Total Unrealized Loss	(2,793)	(1,054)
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	15,172	20,449
12 Months or less, Unrealized Loss	(159)	(100)
More than 12 months, Fair Value	11,366	6,617
More than 12 months, Unrealized Loss	(135)	(92)
Total Fair Value	26,538	27,066
Total Unrealized Loss	(294)	(192)
Obligations of States and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
12 Months or less, Fair Value	27,449	4,057
12 Months or less, Unrealized Loss	(448)	(41)
More than 12 months, Fair Value	7,453	7,309
More than 12 months, Unrealized Loss	(253)	(131)
Total Fair Value	34,902	11,366
Total Unrealized Loss	(701)	(172)
Mortgage-backed Securities in Government Sponsored Entities [Member]
Schedule of Available-for-sale Securities [Line Items]
12 Months or less, Fair Value	57,043	29,534
12 Months or less, Unrealized Loss	(1,027)	(195)
More than 12 months, Fair Value	19,721	22,199
More than 12 months, Unrealized Loss	(771)	(495)
Total Fair Value	76,764	51,733
Total Unrealized Loss	$ (1,798)	$ (690)

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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	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018
Investments Debt And Equity Securities [Abstract]
Net gains recognized on equity securities during the period	$ 35	$ 75
Less: Net gains (losses) realized on the sale of equity securities during the period	0	0
Unrealized gains recognized in equity securities held at reporting date	$ 35	$ 75

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Loans - Loan Balances (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	$ 1,180,032	$ 1,164,661
Allowance for loan losses	(12,867)	(13,134)
Net loans	1,167,165	1,151,527
Commercial and Agriculture [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	153,742	152,473
Commercial Real Estate Owner Occupied [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	169,745	164,099
Commercial Real Estate Non Owner Occupied [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	431,095	425,623
Residential Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	271,207	268,735
Real Estate Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	100,812	97,531
Farm Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	37,845	39,461
Consumer and Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	$ 15,586	$ 16,739

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Loans - Additional Information (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Receivables [Abstract]
Deferred loan fees	$ 52	$ 223

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Allowance for Loan Losses - Additional Information (Detail) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018 USD ($) SecurityLoan	Jun. 30, 2017 SecurityLoan	Jun. 30, 2018 USD ($) SecurityLoan	Jun. 30, 2017 SecurityLoan	Dec. 31, 2017 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Period for calculating Loss migration rates of portfolio segments			3 years
Allowance for loan losses	$ 12,867		$ 12,867		$ 13,134
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 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.
Defaulted loans | SecurityLoan	0	0	0	0
Impaired loans			greater than $350
Allowance for loan losses recorded for acquired loans			$ 29		126
Foreclosed assets	$ 0		0		16
Residential Mortgage [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Residential mortgages in process of foreclosure	379		379		239
TDRs [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses	$ 148		$ 148		$ 169

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Allowance for Loan Losses - Changes in the Allowance for Loan Losses (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance	$ 12,814	$ 13,300	$ 13,134	$ 13,305
Charge-offs	(226)	(357)	(651)	(488)
Recoveries	279	104	384	230
Ending Balance	12,867	13,047	12,867	13,047
Commercial and Agriculture [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance	1,359	1,569	1,562	2,018
Charge-offs	(123)		(248)	(1)
Recoveries	85	27	104	83
Provision	309	12	212	(492)
Ending Balance	1,630	1,608	1,630	1,608
Commercial Real Estate Owner Occupied [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance	2,030	2,259	2,043	2,171
Charge-offs		(210)	(193)	(210)
Recoveries	121	16	130	18
Provision	10	(55)	181	31
Ending Balance	2,161	2,010	2,161	2,010
Commercial Real Estate Non Owner Occupied [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance	5,670	4,543	5,307	4,606
Charge-offs	(1)		(45)
Recoveries	7	4	21	9
Provision	(541)	192	(148)	124
Ending Balance	5,135	4,739	5,135	4,739
Residential Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance	1,750	3,022	1,910	3,089
Charge-offs	(40)	(107)	(62)	(196)
Recoveries	35	32	93	87
Provision	(54)	(271)	(250)	(304)
Ending Balance	1,691	2,676	1,691	2,676
Real Estate Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance	820	413	834	420
Recoveries		14		19
Provision	41	55	27	43
Ending Balance	861	482	861	482
Farm Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance	411	407	430	442
Recoveries	2		3
Provision	(3)	18	(23)	(17)
Ending Balance	410	425	410	425
Consumer and Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance	247	354	290	314
Charge-offs	(62)	(40)	(103)	(81)
Recoveries	29	11	33	14
Provision	86	(1)	80	77
Ending Balance	300	324	300	324
Unallocated [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance	527	733	758	245
Provision	152	50	(79)	538
Ending Balance	$ 679	$ 783	$ 679	$ 783

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Allowance for Loan Losses - Ending Allocation of Allowance for Loan Losses and Loan Balances Outstanding (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses, Individually evaluated for impairment	$ 119		$ 125
Allowance for loan losses, Collectively evaluated for impairment	12,719		12,883
Allowance for loan losses, Total	12,867	$ 12,814	13,134	$ 13,047	$ 13,300	$ 13,305
Outstanding loan balances, Individually evaluated for impairment	3,602		3,460
Outstanding loan balances, Collectively evaluated for impairment	1,176,261		1,160,986
Outstanding loan balances, Total	1,180,032		1,164,661
Receivables Acquired with Deteriorated Credit Quality [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans acquired with credit deterioration	29		126
Loan balance of loans acquired with credit deterioration	169		215
Commercial and Agriculture [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses, Individually evaluated for impairment	5		4
Allowance for loan losses, Collectively evaluated for impairment	1,625		1,476
Allowance for loan losses, Total	1,630	1,359	1,562	1,608	1,569	2,018
Outstanding loan balances, Individually evaluated for impairment	961		438
Outstanding loan balances, Collectively evaluated for impairment	152,720		151,948
Outstanding loan balances, Total	153,742		152,473
Commercial and Agriculture [Member] | Receivables Acquired with Deteriorated Credit Quality [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans acquired with credit deterioration			82
Loan balance of loans acquired with credit deterioration	61		87
Commercial Real Estate Owner Occupied [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses, Individually evaluated for impairment	8		6
Allowance for loan losses, Collectively evaluated for impairment	2,153		2,037
Allowance for loan losses, Total	2,161	2,030	2,043	2,010	2,259	2,171
Outstanding loan balances, Individually evaluated for impairment	517		1,010
Outstanding loan balances, Collectively evaluated for impairment	169,228		163,089
Outstanding loan balances, Total	169,745		164,099
Commercial Real Estate Non Owner Occupied [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses, Collectively evaluated for impairment	5,135		5,307
Allowance for loan losses, Total	5,135	5,670	5,307	4,739	4,543	4,606
Outstanding loan balances, Individually evaluated for impairment	39		44
Outstanding loan balances, Collectively evaluated for impairment	431,056		425,579
Outstanding loan balances, Total	431,095		425,623
Residential Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses, Individually evaluated for impairment	100		109
Allowance for loan losses, Collectively evaluated for impairment	1,562		1,757
Allowance for loan losses, Total	1,691	1,750	1,910	2,676	3,022	3,089
Outstanding loan balances, Individually evaluated for impairment	1,307		1,360
Outstanding loan balances, Collectively evaluated for impairment	269,792		267,247
Outstanding loan balances, Total	271,207		268,735
Residential Real Estate [Member] | Receivables Acquired with Deteriorated Credit Quality [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans acquired with credit deterioration	29		44
Loan balance of loans acquired with credit deterioration	108		128
Real Estate Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses, Collectively evaluated for impairment	861		834
Allowance for loan losses, Total	861	820	834	482	413	420
Outstanding loan balances, Collectively evaluated for impairment	100,812		97,531
Outstanding loan balances, Total	100,812		97,531
Farm Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses, Individually evaluated for impairment	6		6
Allowance for loan losses, Collectively evaluated for impairment	404		424
Allowance for loan losses, Total	410	411	430	425	407	442
Outstanding loan balances, Individually evaluated for impairment	778		608
Outstanding loan balances, Collectively evaluated for impairment	37,067		38,853
Outstanding loan balances, Total	37,845		39,461
Consumer and Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses, Collectively evaluated for impairment	300		290
Allowance for loan losses, Total	300	247	290	324	354	314
Outstanding loan balances, Collectively evaluated for impairment	15,586		16,739
Outstanding loan balances, Total	15,586		16,739
Unallocated [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan losses, Collectively evaluated for impairment	679		758
Allowance for loan losses, Total	$ 679	$ 527	$ 758	$ 783	$ 733	$ 245

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Allowance for Loan Losses - Credit Exposures by Internally Assigned Grades (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	$ 953,619	$ 945,123
Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	922,400	899,674
Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	12,765	25,147
Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	18,454	20,302
Commercial and Agriculture [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	153,742	152,473
Commercial and Agriculture [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	148,387	140,842
Commercial and Agriculture [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	2,297	8,412
Commercial and Agriculture [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	3,058	3,219
Commercial Real Estate Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	169,745	164,099
Commercial Real Estate Owner Occupied [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	163,160	155,756
Commercial Real Estate Owner Occupied [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	1,256	1,166
Commercial Real Estate Owner Occupied [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	5,329	7,177
Commercial Real Estate Non Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	431,095	425,623
Commercial Real Estate Non Owner Occupied [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	428,084	422,363
Commercial Real Estate Non Owner Occupied [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	2,288	2,321
Commercial Real Estate Non Owner Occupied [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	723	939
Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	67,197	70,498
Residential Real Estate [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	60,275	62,628
Residential Real Estate [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	1,831	1,997
Residential Real Estate [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	5,091	5,873
Real Estate Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	92,709	91,587
Real Estate Construction [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	91,406	91,545
Real Estate Construction [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	14	15
Real Estate Construction [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	1,289	27
Farm Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	37,845	39,461
Farm Real Estate [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	29,816	25,228
Farm Real Estate [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	5,079	11,236
Farm Real Estate [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	2,950	2,997
Consumer and Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	1,286	1,382
Consumer and Other [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	1,272	1,312
Consumer and Other [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans with credit exposures as assigned an internal risk grade	$ 14	$ 70

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Allowance for Loan Losses - Performing and Nonperforming Loans (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment [Line Items]
Performing	$ 226,379	$ 219,522
Nonperforming	34	16
Total	226,413	219,538
Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Performing	204,010	198,237
Total	204,010	198,237
Real Estate Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Performing	8,103	5,944
Total	8,103	5,944
Consumer and Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Performing	14,266	15,341
Nonperforming	34	16
Total	$ 14,300	$ 15,357

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Allowance for Loan Losses - Aging Analysis of Past Due Loans (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 3,726	$ 6,421
Current	1,176,137	1,158,025
Total Loans	1,180,032	1,164,661
Past Due 90 Days and Accruing	34	16
30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,074	3,337
60-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	602	431
90 Days or Greater [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	2,050	2,653
Receivables Acquired with Deteriorated Credit Quality [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Purchased Credit-Impaired Loans	169	215
Commercial and Agriculture [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	849	1,262
Current	152,832	151,124
Total Loans	153,742	152,473
Commercial and Agriculture [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	186	575
Commercial and Agriculture [Member] | 60-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		2
Commercial and Agriculture [Member] | 90 Days or Greater [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	663	685
Commercial and Agriculture [Member] | Receivables Acquired with Deteriorated Credit Quality [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Purchased Credit-Impaired Loans	61	87
Commercial Real Estate Owner Occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	823	1,485
Current	168,922	162,614
Total Loans	169,745	164,099
Commercial Real Estate Owner Occupied [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	176	897
Commercial Real Estate Owner Occupied [Member] | 60-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	195	104
Commercial Real Estate Owner Occupied [Member] | 90 Days or Greater [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	452	484
Commercial Real Estate Non Owner Occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	155	603
Current	430,940	425,020
Total Loans	431,095	425,623
Commercial Real Estate Non Owner Occupied [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		133
Commercial Real Estate Non Owner Occupied [Member] | 90 Days or Greater [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	155	470
Residential Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,280	2,627
Current	269,819	265,980
Total Loans	271,207	268,735
Residential Real Estate [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	440	1,613
Residential Real Estate [Member] | 60-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	307	229
Residential Real Estate [Member] | 90 Days or Greater [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	533	785
Residential Real Estate [Member] | Receivables Acquired with Deteriorated Credit Quality [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Purchased Credit-Impaired Loans	108	128
Real Estate Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	27	27
Current	100,785	97,504
Total Loans	100,812	97,531
Real Estate Construction [Member] | 90 Days or Greater [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	27	27
Farm Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	408	213
Current	37,437	39,248
Total Loans	37,845	39,461
Farm Real Estate [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	149	27
Farm Real Estate [Member] | 60-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	78
Farm Real Estate [Member] | 90 Days or Greater [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	181	186
Consumer and Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	184	204
Current	15,402	16,535
Total Loans	15,586	16,739
Past Due 90 Days and Accruing	34	16
Consumer and Other [Member] | 30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	123	92
Consumer and Other [Member] | 60-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	22	96
Consumer and Other [Member] | 90 Days or Greater [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 39	$ 16

XML

Allowance for Loan Losses - Summary of Nonaccrual Loans Excluding Purchased Credit-Impaired (PCI) Loans (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment [Line Items]
Total, Non-Accrual Status	$ 4,398	$ 6,132
Commercial and Agriculture [Member]
Financing Receivable, Recorded Investment [Line Items]
Total, Non-Accrual Status	856	887
Commercial Real Estate Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total, Non-Accrual Status	810	1,476
Commercial Real Estate Non Owner Occupied [Member]
Financing Receivable, Recorded Investment [Line Items]
Total, Non-Accrual Status	252	711
Residential Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total, Non-Accrual Status	2,261	2,778
Real Estate Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Total, Non-Accrual Status	27	27
Farm Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total, Non-Accrual Status	181	186
Consumer and Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Total, Non-Accrual Status	$ 11	$ 67

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Allowance for Loan Losses - Schedule of Troubled Debt Restructurings (Detail) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2017 USD ($) Contract	Jun. 30, 2018 USD ($) Contract	Jun. 30, 2017 USD ($) Contract
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of Contracts | Contract	1	3	1
Pre- Modification Outstanding Recorded Investment	$ 13	$ 591	$ 13
Post-Modification Outstanding Recorded Investment	$ 13	$ 591	$ 13
Commercial and Agriculture [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of Contracts | Contract		3
Pre- Modification Outstanding Recorded Investment		$ 591
Post-Modification Outstanding Recorded Investment		$ 591
Residential Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number of Contracts | Contract	1		1
Pre- Modification Outstanding Recorded Investment	$ 13		$ 13
Post-Modification Outstanding Recorded Investment	$ 13		$ 13

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Allowance for Loan Losses - Impaired Financing Receivables Excluding PCI Loans - Recorded Investment and Unpaid Principal Balances (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Financing Receivable, Impaired [Line Items]
Impaired financing receivables, with no related allowance recorded, Recorded Investment	$ 2,082	$ 1,862
Impaired financing receivables, with no related allowance recorded, Unpaid Principal Balance	2,158	2,158
Impaired financing receivables, with an allowance recorded, Recorded Investment	1,520	1,598
Impaired financing receivables, with an allowance recorded, Unpaid Principal Balance	1,524	1,602
Impaired financing receivables, with an allowance recorded, Related Allowance	119	125
Impaired financing receivables, Recorded Investment, Total	3,602	3,460
Impaired financing receivables, Unpaid Principal Balance, Total	3,682	3,760
Impaired financing receivables, Related Allowance, Total	119	125
Commercial and Agriculture [Member]
Financing Receivable, Impaired [Line Items]
Impaired financing receivables, with no related allowance recorded, Recorded Investment	571
Impaired financing receivables, with no related allowance recorded, Unpaid Principal Balance	571
Impaired financing receivables, with an allowance recorded, Recorded Investment	390	438
Impaired financing receivables, with an allowance recorded, Unpaid Principal Balance	390	438
Impaired financing receivables, with an allowance recorded, Related Allowance	5	4
Impaired financing receivables, Recorded Investment, Total	961	438
Impaired financing receivables, Unpaid Principal Balance, Total	961	438
Impaired financing receivables, Related Allowance, Total	5	4
Commercial Real Estate Owner Occupied [Member]
Financing Receivable, Impaired [Line Items]
Impaired financing receivables, with no related allowance recorded, Recorded Investment	207	693
Impaired financing receivables, with no related allowance recorded, Unpaid Principal Balance	207	913
Impaired financing receivables, with an allowance recorded, Recorded Investment	310	317
Impaired financing receivables, with an allowance recorded, Unpaid Principal Balance	310	317
Impaired financing receivables, with an allowance recorded, Related Allowance	8	6
Impaired financing receivables, Recorded Investment, Total	517	1,010
Impaired financing receivables, Unpaid Principal Balance, Total	517	1,230
Impaired financing receivables, Related Allowance, Total	8	6
Commercial Real Estate Non Owner Occupied [Member]
Financing Receivable, Impaired [Line Items]
Impaired financing receivables, with no related allowance recorded, Recorded Investment	39	44
Impaired financing receivables, with no related allowance recorded, Unpaid Principal Balance	43	48
Impaired financing receivables, Recorded Investment, Total	39	44
Impaired financing receivables, Unpaid Principal Balance, Total	43	48
Residential Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Impaired financing receivables, with no related allowance recorded, Recorded Investment	937	977
Impaired financing receivables, with no related allowance recorded, Unpaid Principal Balance	1,009	1,049
Impaired financing receivables, with an allowance recorded, Recorded Investment	370	383
Impaired financing receivables, with an allowance recorded, Unpaid Principal Balance	374	387
Impaired financing receivables, with an allowance recorded, Related Allowance	100	109
Impaired financing receivables, Recorded Investment, Total	1,307	1,360
Impaired financing receivables, Unpaid Principal Balance, Total	1,383	1,436
Impaired financing receivables, Related Allowance, Total	100	109
Farm Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Impaired financing receivables, with no related allowance recorded, Recorded Investment	328	148
Impaired financing receivables, with no related allowance recorded, Unpaid Principal Balance	328	148
Impaired financing receivables, with an allowance recorded, Recorded Investment	450	460
Impaired financing receivables, with an allowance recorded, Unpaid Principal Balance	450	460
Impaired financing receivables, with an allowance recorded, Related Allowance	6	6
Impaired financing receivables, Recorded Investment, Total	778	608
Impaired financing receivables, Unpaid Principal Balance, Total	778	608
Impaired financing receivables, Related Allowance, Total	$ 6	$ 6

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Allowance for Loan Losses - Impaired Loans - Average Recorded Investment and Interest Income Recognized (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	$ 3,664	$ 5,980	$ 3,596	$ 6,166
Interest Income Recognized	41	60	82	123
Commercial and Agriculture [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	993	1,643	808	1,756
Interest Income Recognized	6	6	13	20
Commercial Real Estate Owner Occupied [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	524	1,795	686	1,829
Interest Income Recognized	8	26	17	48
Commercial Real Estate Non Owner Occupied [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	41	356	42	357
Interest Income Recognized	2	2	3	3
Residential Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	1,321	1,572	1,334	1,610
Interest Income Recognized	17	19	34	39
Farm Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Average Recorded Investment	785	614	726	614
Interest Income Recognized	$ 8	$ 7	$ 15	$ 13

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Allowance for Loan Losses - Schedule of Changes in Amortized Yield for PCI Loans (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities Accretable Yield Movement Schedule Roll Forward
Balance at beginning of period	$ 8	$ 40	$ 15	$ 49
Acquisition of PCI loans	0	0	0	0
Accretion	(2)	(9)	(9)	(18)
Balance at end of period	$ 6	$ 31	$ 6	$ 31

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Allowance for Loan Losses - Schedule of Loans Acquired and Accounted (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Receivables [Abstract]
Outstanding balance	$ 720	$ 775
Carrying amount	$ 169	$ 215

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Other Comprehensive Income - Changes in Each Component of Accumulated Other Comprehensive Income (Loss), Net of Tax (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance			$ 184,461
Amounts reclassified from accumulated other comprehensive loss	$ 118	$ 281	231	$ 343
Total other comprehensive income (loss)	(428)	1,240	(2,854)	1,601
Ending balance	189,848		189,848
Unrealized Gains (Losses) on Available-for-Sale Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	368	2,307	3,185	2,008
Other comprehensive income before reclassifications	(546)	959	(3,085)	1,258
Amounts reclassified from accumulated other comprehensive loss	5		5
Total other comprehensive income (loss)	(541)	959	(3,080)	1,258
Reclassification of equity securities from accumulated other comprehensive loss			(278)
Ending balance	(173)	3,266	(173)	3,266
Defined Benefit Pension Items [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(4,196)	(4,283)	(4,309)	(4,345)
Amounts reclassified from accumulated other comprehensive loss	113	281	226	343
Total other comprehensive income (loss)	113	281	226	343
Ending balance	(4,083)	(4,002)	(4,083)	(4,002)
Accumulated Other Comprehensive Loss [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(3,828)	(1,976)	(1,124)	(2,337)
Other comprehensive income before reclassifications	(546)	959	(3,085)	1,258
Amounts reclassified from accumulated other comprehensive loss	118	281	231	343
Total other comprehensive income (loss)	(428)	1,240	(2,854)	1,601
Reclassification of equity securities from accumulated other comprehensive loss			(278)
Ending balance	$ (4,256)	$ (736)	$ (4,256)	$ (736)

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Other Comprehensive Income - Amounts Reclassified Out of Each Component of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassifications, net of tax	$ (118)	$ (281)	$ (231)	$ (343)
Unrealized Gains (Losses) on Available-for-Sale Securities [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassifications, net of tax	(5)		(5)
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) loss on securities available for sale	(6)		(6)
Income taxes	1		1
Net of tax	5		5
Accumulated Defined Benefit Plans Adjustment, Actuarial Losses [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Other operating expenses and Salaries, wages and benefits	(143)	(426)	(286)	(520)
Defined Benefit Pension Items [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Income taxes	30	145	60	177
Reclassifications, net of tax	$ (113)	$ (281)	$ (226)	$ (343)

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Goodwill and Intangible Assets - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill	$ 27,095,000		$ 27,095,000		$ 27,095,000
Change in carrying amount of goodwill			0		$ 0
Amortization of core deposit intangible assets	26,000	$ 158,000	59,000	$ 325,000
Aggregate mortgage servicing rights amortization	$ 27,000	$ 17,000	$ 43,000	$ 28,000

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Goodwill and Intangible Assets - Schedule of Acquired Intangible Assets, Other than Goodwill (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 8,408	$ 8,339
Accumulated Amortization	7,161	7,060
Net Carrying Amount	1,247	1,279
MSRs [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,134	1,065
Accumulated Amortization	364	322
Net Carrying Amount	770	743
Core deposit intangibles [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	7,274	7,274
Accumulated Amortization	6,797	6,738
Net Carrying Amount	$ 477	$ 536

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Goodwill and Intangible Assets - Schedule of Estimated Amortization Expense (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Acquired Finite-Lived Intangible Assets [Line Items]
2018	$ 73
2019	130
2020	114
2021	110
2022	110
Thereafter	710
Net Carrying Amount	1,247	$ 1,279
MSRs [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
2018	21
2019	42
2020	42
2021	42
2022	42
Thereafter	581
Net Carrying Amount	770	743
Core deposit intangibles [Member]
Acquired Finite-Lived Intangible Assets [Line Items]
2018	52
2019	88
2020	72
2021	68
2022	68
Thereafter	129
Net Carrying Amount	$ 477	$ 536

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Short-Term Borrowings - Summary of Federal Funds Purchased and Other Short-term Borrowings are Included in Federal Home Loan Bank Advances on Consolidated Balance Sheets (Detail) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Federal Funds Purchased [Member]
Short-term Debt [Line Items]
Maximum indebtedness		$ 20,000,000
Average balance		$ 119,000
Average rate paid		1.68%
Short Term Borrowings [Member]
Short-term Debt [Line Items]
Outstanding balance	$ 151,200,000	$ 56,900,000
Maximum indebtedness	153,600,000	115,050,000
Average balance	$ 64,241,000	$ 38,825,000
Average rate paid	1.78%	1.12%
Interest rate on balance	1.92%	1.42%

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Short-Term Borrowings - Summary of Securities Pledged as Collateral Under Repurchase Agreements (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Offsetting Liabilities [Line Items]
Total securities pledged	$ 14,230	$ 21,755
Gross amount of recognized liabilities for repurchase agreements	14,230	21,755
Amounts related to agreements not included in offsetting disclosures above	0	0
U.S.Treasury Securities [Member]
Offsetting Liabilities [Line Items]
Total securities pledged	632	874
Obligations of U.S. Government Agencies [Member]
Offsetting Liabilities [Line Items]
Total securities pledged	$ 13,598	$ 20,881

XML

Earnings per Common Share - Computation of Basic and Diluted Earnings per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Basic
Net income	$ 3,014	$ 3,596	$ 10,003	$ 8,231
Preferred stock dividends	299	308	602	627
Net income available to common shareholders	$ 2,715	$ 3,288	$ 9,401	$ 7,604
Weighted average common shares outstanding for basic earnings per common share	10,470,839	10,162,528	10,342,763	9,634,363
Basic earnings per common share	$ 0.26	$ 0.32	$ 0.91	$ 0.79
Diluted
Net income available to common shareholders—basic	$ 2,715	$ 3,288	$ 9,401	$ 7,604
Preferred stock dividends	299	308	602	627
Net income available to common shareholders—diluted	$ 3,014	$ 3,596	$ 10,003	$ 8,231
Weighted average common shares outstanding for basic earnings per common share	10,470,839	10,162,528	10,342,763	9,634,363
Add: Dilutive effects of convertible preferred shares	2,144,497	2,431,349	2,263,652	2,469,465
Average shares and dilutive potential common shares outstanding—diluted	12,615,336	12,593,877	12,606,415	12,103,828
Diluted earnings per common share	$ 0.24	$ 0.29	$ 0.79	$ 0.68

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Earnings per Common Share - Additional Information (Detail) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Earnings Per Share [Abstract]
Dilutive shares related to convertible preferred stock	2,144,497	2,431,349	2,263,652	2,469,465

XML

Commitments, Contingencies and Off-Balance-Sheet Risk - Contractual Amounts of Financial Instruments with Off-Balance-Sheet Risk (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fixed Rate	$ 6,084	$ 5,613
Variable Rate	314,644	322,915
Lines of Credit and Construction Loans [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fixed Rate	5,457	4,982
Variable Rate	278,612	286,925
Overdraft Protection [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fixed Rate	3	7
Variable Rate	33,682	33,353
Letters of Credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fixed Rate	624	624
Variable Rate	$ 2,350	$ 2,637

XML

Commitments, Contingencies and Off-Balance-Sheet Risk - Additional Information (Detail) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
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
Average reserve balance under Federal Reserve Board requirements	$ 8,284	$ 4,112
Minimum [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Range of fixed interest rate loan commitments	2.88%	2.88%
Maximum [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Range of fixed interest rate loan commitments	8.50%	10.25%

XML

Pension Information - Additional Information (Detail) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Compensation And Retirement Disclosure [Abstract]
Additional benefits under pension plan	$ 0
Expected future employer contributions	$ 0
Employer contributions		$ 2,000,000

XML

Pension Information - Components of Net Periodic Pension Benefit (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Compensation And Retirement Disclosure [Abstract]
Service cost	$ 0	$ 0	$ 0	$ 0
Interest cost	125	171	250	338
Expected return on plan assets	(273)	(283)	(546)	(561)
Other components	143	426	286	520
Net periodic pension benefit	$ (5)	$ 314	$ (10)	$ 297

XML

Equity Incentive Plan - Additional Information (Detail) - USD ($) $ in Thousands				6 Months Ended
	May 17, 2018	Sep. 11, 2017	May 16, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted shares vesting service period				2 years 6 months 29 days
Expected future compensation expense				$ 558
Civista Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted common shares granted	6,204	367	6,804
Share based compensation - Civista BOD	$ 144	$ 8	$ 144
Restricted Stock [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted shares vesting service period				3 years
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				269,495
Options granted				0	0
Share based compensation expense				$ 129
Director retainer fees				144
Expected future compensation expense				$ 558
Weighted average remaining life of grants related to unvested awards not yet recognized				2 years 6 months 29 days

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Equity Incentive Plan - Summary of Company's Restricted Stock (Detail) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2018 USD ($) $ / shares shares	Jun. 30, 2018 USD ($) $ / shares shares
Schedule Of Nonvested Stock Option Activity [Line Items]
Number of Restricted Shares, Granted		40,692
Expected future remaining compensation expense | $	$ 558	$ 558
Expected future compensation expense, restricted shares remaining vesting period		2 years 6 months 29 days
Restricted Shares Awarded on January 15, 2016 [Member]
Schedule Of Nonvested Stock Option Activity [Line Items]
Number of Restricted Shares, Granted		6,160
Date of Award		Jan. 15, 2016
Expected future remaining compensation expense | $	54	$ 54
Expected future compensation expense, restricted shares remaining vesting period		2 years 6 months
Restricted Shares Awarded on March 11, 2016 [Member]
Schedule Of Nonvested Stock Option Activity [Line Items]
Number of Restricted Shares, Granted		5,256
Date of Award		Mar. 11, 2016
Expected future remaining compensation expense | $	16	$ 16
Expected future compensation expense, restricted shares remaining vesting period		6 months
Restricted Shares Awarded on March 20, 2017 [Member]
Schedule Of Nonvested Stock Option Activity [Line Items]
Number of Restricted Shares, Granted		7,814
Date of Award		Mar. 20, 2017
Expected future remaining compensation expense | $	81	$ 81
Expected future compensation expense, restricted shares remaining vesting period		1 year 6 months
Restricted Shares Awarded on March 20, 2017 [Member]
Schedule Of Nonvested Stock Option Activity [Line Items]
Number of Restricted Shares, Granted		4,952
Date of Award		Mar. 20, 2017
Expected future remaining compensation expense | $	93	$ 93
Expected future compensation expense, restricted shares remaining vesting period		3 years 6 months
Restricted Shares Awarded on April 10, 2018 [Member]
Schedule Of Nonvested Stock Option Activity [Line Items]
Number of Restricted Shares, Granted		8,294
Date of Award		Apr. 10, 2018
Expected future remaining compensation expense | $	145	$ 145
Expected future compensation expense, restricted shares remaining vesting period		2 years 6 months
Restricted Shares Awarded on April 10, 2018 [Member]
Schedule Of Nonvested Stock Option Activity [Line Items]
Number of Restricted Shares, Granted		8,216
Date of Award		Apr. 10, 2018
Expected future remaining compensation expense | $	$ 169	$ 169
Expected future compensation expense, restricted shares remaining vesting period		4 years 6 months
Restricted Stock [Member]
Schedule Of Nonvested Stock Option Activity [Line Items]
Number of Restricted Shares, Nonvested at beginning of period	24,182	42,138
Number of Restricted Shares, Granted	16,510	16,510
Number of Restricted Shares, Vested	0	(17,956)
Number of Restricted Shares, Forfeited	0	0
Number of Restricted Shares, Nonvested at end of period	40,692	40,692
Weighted Average Grant Date Fair Value, Nonvested at beginning of period | $ / shares	$ 16.78	$ 15.60
Weighted Average Grant Date Fair Value, Granted | $ / shares	22.51	22.51
Weighted Average Grant Date Fair Value, Vested | $ / shares	0	14.01
Weighted Average Grant Date Fair Value, Forfeited | $ / shares	0	0
Weighted Average Grant Date Fair Value, Nonvested at end of period | $ / shares	$ 19.11	$ 19.11

XML

Fair Value Measurement - Assets and Liabilities Measured at Fair Value (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total securities available for sale	$ 231,013	$ 230,230
(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	231,013	230,230
(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]
Fair value swap asset	2,375	1,560
Fair value swap liability	2,375	1,560
(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	29,399	30,358
(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	117,648	118,056
(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	83,966	81,816
(Level 2) [Member] | Assets Measured at Fair Value on a Recurring Basis [Member] | Equity Securities in Financial Institutions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets	907	832
(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	$ 1,350	1,040
(Level 3) [Member] | Assets Measured at Fair Value on a Nonrecurring Basis [Member] | Other Real Estate Owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets		$ 16

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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] - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Impaired Loans [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Estimate	$ 1,350	$ 1,040
Valuation Technique [Extensible List]	civb:AppraisalOfCollateralMember	civb:AppraisalOfCollateralMember
Impaired Loans [Member] | Minimum [Member] | Measurement Input, Appraised Value
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Assumptions, Appraisal adjustments	10.00%	0.00%
Impaired Loans [Member] | Minimum [Member] | Measurement Input Liquidation Expense
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Assumptions, Liquidation expense	0.00%	0.00%
Impaired Loans [Member] | Minimum [Member] | Measurement Input Holding Period
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Assumptions, Holding period	0 months	0 months
Impaired Loans [Member] | Maximum [Member] | Measurement Input, Appraised Value
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Assumptions, Appraisal adjustments	38.00%	30.00%
Impaired Loans [Member] | Maximum [Member] | Measurement Input Liquidation Expense
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Assumptions, Liquidation expense	10.00%	10.00%
Impaired Loans [Member] | Maximum [Member] | Measurement Input Holding Period
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Assumptions, Holding period	30 months	30 months
Impaired Loans [Member] | Weighted Average [Member] | Measurement Input, Appraised Value
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Assumptions, Appraisal adjustments	30.00%	16.00%
Impaired Loans [Member] | Weighted Average [Member] | Measurement Input Liquidation Expense
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Assumptions, Liquidation expense	3.00%	8.00%
Impaired Loans [Member] | Weighted Average [Member] | Measurement Input Holding Period
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Assumptions, Holding period	21 months	20 months
Other Real Estate Owned
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Estimate		$ 16
Other Real Estate Owned, Valuation Technique [Extensible List]		civb:AppraisalOfCollateralMember
Other Real Estate Owned | Minimum [Member] | Measurement Input, Appraised Value
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Assumptions, Appraisal adjustments		10.00%
Other Real Estate Owned | Minimum [Member] | Measurement Input Liquidation Expense
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Assumptions, Liquidation expense		0.00%
Other Real Estate Owned | Maximum [Member] | Measurement Input, Appraised Value
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Assumptions, Appraisal adjustments		30.00%
Other Real Estate Owned | Maximum [Member] | Measurement Input Liquidation Expense
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Assumptions, Liquidation expense		10.00%
Other Real Estate Owned | Weighted Average [Member] | Measurement Input, Appraised Value
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Assumptions, Appraisal adjustments		10.00%
Other Real Estate Owned | Weighted Average [Member] | Measurement Input Liquidation Expense
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Fair Value Assumptions, Liquidation expense		10.00%

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Fair Value Measurement - Carrying Amount and Fair Value of Financial Instruments Not Measured at Fair Value on a Recurring or Nonrecurring Basis (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Financial Assets:
Cash and due from financial institutions	$ 41,156	$ 40,519	$ 39,515	$ 36,695
Other securities	14,247	14,247
Loans	1,167,165	1,151,527
Bank owned life insurance	25,411	25,125
Accrued interest receivable	4,489	4,488
Financial Liabilities:
Securities sold under agreement to repurchase	14,230	21,755
Carrying Amount [Member]
Financial Assets:
Cash and due from financial institutions	41,156	40,519
Other securities	14,247	14,247
Loans, held for sale	4,058	2,197
Loans	1,167,165	1,151,527
Bank owned life insurance	25,411	25,125
Accrued interest receivable	4,489	4,488
Financial Liabilities:
Nonmaturing deposits	1,006,836	981,021
Time deposits	139,336	223,902
Short-term FHLB advances	151,200	56,900
Long-term FHLB advances	5,000	15,000
Securities sold under agreement to repurchase	14,230	21,755
Subordinated debentures	29,427	29,427
Accrued interest payable	102	410
Total Fair Value [Member]
Financial Assets:
Cash and due from financial institutions	41,156	40,519
Other securities	14,247	14,247
Loans, held for sale	4,058	2,197
Loans	1,161,845	1,146,969
Bank owned life insurance	25,411	25,125
Accrued interest receivable	4,489	4,488
Financial Liabilities:
Nonmaturing deposits	1,006,836	981,021
Time deposits	138,624	223,626
Short-term FHLB advances	151,200	56,900
Long-term FHLB advances	4,996	14,964
Securities sold under agreement to repurchase	14,230	21,755
Subordinated debentures	32,312	31,052
Accrued interest payable	102	410
(Level 1) [Member]
Financial Assets:
Cash and due from financial institutions	41,156	40,519
Other securities	14,247	14,247
Loans, held for sale	4,058	2,197
Bank owned life insurance	25,411	25,125
Accrued interest receivable	4,489	4,488
Financial Liabilities:
Nonmaturing deposits	1,006,836	981,021
Short-term FHLB advances	151,200	56,900
Securities sold under agreement to repurchase	14,230	21,755
Accrued interest payable	102	410
(Level 3) [Member]
Financial Assets:
Loans	1,161,845	1,146,969
Financial Liabilities:
Time deposits	138,624	223,626
Long-term FHLB advances	4,996	14,964
Subordinated debentures	$ 32,312	$ 31,052

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Derivative Hedging Instruments - Summary of Interest Rate Swap Transactions (Detail) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Net Exposure, Notional Amount	$ 0	$ 0
Derivative Financial Instruments, Assets [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Net Exposure, Notional Amount	$ 90,250,000	$ 66,227,000
Weighted Average Rate Received/(Paid)	5.25%	5.08%
Net Exposure, Impact of a 1 basis point change in interest rates	$ 48,000	$ 36,000
Repricing Frequency	Monthly	Monthly
Derivative Financial Instruments, Liabilities [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Net Exposure, Notional Amount	$ (90,250,000)	$ (66,227,000)
Weighted Average Rate Received/(Paid)	5.25%	5.08%
Net Exposure, Impact of a 1 basis point change in interest rates	$ (48,000)	$ (36,000)
Repricing Frequency	Monthly	Monthly

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Qualified Affordable Housing Project Investments - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Investments In Affordable Housing Projects [Abstract]
Investment for qualified affordable housing projects included in other assets	$ 3,792,000		$ 3,792,000		$ 3,204,000
Unfunded commitments related to the investments in qualified affordable housing projects	3,664,000		3,664,000		$ 4,510,000
Recognized amortization expense	129,000	$ 82,000	258,000	$ 165,000
Recognized tax credits and other benefits from its investment in affordable housing tax credits	207,000	138,000	426,000	276,000
Impairment losses related to its investment in qualified affordable housing projects	$ 0	$ 0	$ 0	$ 0

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Revenue Recognition - Summary of Noninterest Income Segregated By Revenue Streams (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Noninterest income
Total Noninterest Income	$ 4,390	$ 4,101	$ 10,006	$ 9,237
Noninterest Income (in-scope of Topic 606) [Member]
Noninterest income
Noninterest Income	3,561	3,416	8,521	8,070
Noninterest Income (out-of-scope of Topic 606) [Member]
Noninterest income
Total Noninterest Income	829	685	1,485	1,167
Service Charges [Member]
Noninterest income
Noninterest Income	1,359	1,387	2,493	2,432
Service Charges [Member] | Noninterest Income (in-scope of Topic 606) [Member]
Noninterest income
Noninterest Income	1,359	1,387	2,493	2,432
ATM/Interchange Fees [Member]
Noninterest income
Noninterest Income	588	567	1,142	1,076
ATM/Interchange Fees [Member] | Noninterest Income (in-scope of Topic 606) [Member]
Noninterest income
Noninterest Income	588	567	1,142	1,076
Wealth Management Fees [Member]
Noninterest income
Noninterest Income	836	738	1,688	1,445
Wealth Management Fees [Member] | Noninterest Income (in-scope of Topic 606) [Member]
Noninterest income
Noninterest Income	836	738	1,688	1,445
Tax Refund Processing Fees [Member]
Noninterest income
Noninterest Income	550	550	2,750	2,750
Tax Refund Processing Fees [Member] | Noninterest Income (in-scope of Topic 606) [Member]
Noninterest income
Noninterest Income	550	550	2,750	2,750
Other [Member]
Noninterest income
Noninterest Income	398	238	759	512
Other [Member] | Noninterest Income (in-scope of Topic 606) [Member]
Noninterest income
Noninterest Income	$ 228	$ 174	$ 448	$ 367

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Revenue Recognition - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2018
ASU No. 2014-09 [Member]
Revenue From Contract With Customer [Line Items]
Description of contract acquisition costs amortized	The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. Upon adoption of Topic 606, the Company did not capitalize any contract acquisition cost.

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Merger - Additional Information (Detail) - UCB and United Community Bank [Member] $ / shares in Units, $ in Millions		6 Months Ended
	Mar. 11, 2018 Bank $ / shares shares	Jun. 30, 2018	Dec. 31, 2017 USD ($)
Business Combinations [Line Items]
Date of acquisition agreement		Mar. 11, 2018
Number of banking offices acquired | Bank	8
Total consolidated assets | $			$ 546
Total loans | $			296
Total deposits | $			$ 462
Per share common stock	$ 1.027
Per share cash consideration	$ 2.54
Stock options outstanding | shares	212,563
Share price per share	$ 26.22
Aggregate cash consideration to be paid	$ 13,600,000