Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2020

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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, 2020 and 2019.

Allowance for loan losses:

For the three months ended June 30, 2020	Beginning balance		Charge-offs			Recoveries		Provision		Ending Balance
Commercial & Agriculture	$	2,400	$	(15	)	$	3	$	411	$	2,799
Commercial Real Estate:
Owner Occupied		2,810		(1	)		7		595		3,411
Non-Owner Occupied		7,617		—			37		1,515		9,169
Residential Real Estate		1,950		(74	)		31		527		2,434
Real Estate Construction		1,606		—			2		236		1,844
Farm Real Estate		310		—			4		47		361
Consumer and Other		246		(26	)		18		9		247
Unallocated		9		—			—		146		155
Total	$	16,948	$	(116	)	$	102	$	3,486	$	20,420

Allowance for loan losses:

For the three months ended June 30, 2019	Beginning balance		Charge-offs			Recoveries		Provision			Ending Balance
Commercial & Agriculture	$	1,834	$	(27	)	$	3	$	18		$	1,828
Commercial Real Estate:
Owner Occupied		1,979		—			17		13			2,009
Non-Owner Occupied		5,989		—			30		(152	)		5,867
Residential Real Estate		1,434		(105	)		37		332			1,698
Real Estate Construction		971		—			—		164			1,135
Farm Real Estate		366		—			1		(2	)		365
Consumer and Other		251		(24	)		32		(58	)		201
Unallocated		998		—			—		(315	)		683
Total	$	13,822	$	(156	)	$	120	$	—		$	13,786

Allowance for loan losses:

For the six months ended June 30, 2020	Beginning balance		Charge-offs			Recoveries		Provision			Ending Balance
Commercial & Agriculture	$	2,219	$	(15	)	$	4	$	591		$	2,799
Commercial Real Estate:
Owner Occupied		2,541		(1	)		14		857			3,411
Non-Owner Occupied		6,584		—			41		2,544			9,169
Residential Real Estate		1,582		(97	)		79		870			2,434
Real Estate Construction		1,250		—			2		592			1,844
Farm Real Estate		344		—			7		10			361
Consumer and Other		247		(27	)		34		(7	)		247
Unallocated		—		—			—		155			155
Total	$	14,767	$	(140	)	$	181	$	5,612		$	20,420

Allowance for loan losses:

For the six months ended June 30, 2019	Beginning balance		Charge-offs			Recoveries		Provision			Ending Balance
Commercial & Agriculture	$	1,747	$	(27	)	$	4	$	104		$	1,828
Commercial Real Estate:
Owner Occupied		1,962		(60	)		239		(132	)		2,009
Non-Owner Occupied		5,803		—			44		20			5,867
Residential Real Estate		1,531		(203	)		162		208			1,698
Real Estate Construction		1,046		(24	)		—		113			1,135
Farm Real Estate		397		—			2		(34	)		365
Consumer and Other		284		(81	)		51		(53	)		201
Unallocated		909		—			—		(226	)		683
Total	$	13,679	$	(395	)	$	502	$	—		$	13,786

The following tables present, by portfolio segment, the allocation of the allowance for loan losses and related loan balances as of June 30, 2020 and December 31, 2019.

June 30, 2020	Loans acquired with credit deterioration		Loans individually evaluated for impairment		Loans collectively evaluated for impairment		Total
Allowance for loan losses:
Commercial & Agriculture	$	—	$	—	$	2,799	$	2,799
Commercial Real Estate:
Owner Occupied		—		8		3,403		3,411
Non-Owner Occupied		—		—		9,169		9,169
Residential Real Estate		—		84		2,350		2,434
Real Estate Construction		—		—		1,844		1,844
Farm Real Estate		—		—		361		361
Consumer and Other		—		—		247		247
Unallocated		—		—		155		155
Total	$	—	$	92	$	20,328	$	20,420
Outstanding loan balances:
Commercial & Agriculture	$	—	$	—	$	442,444	$	442,444
Commercial Real Estate:
Owner Occupied		—		403		252,511		252,914
Non-Owner Occupied		—		368		646,424		646,792
Residential Real Estate		463		1,183		451,421		453,067
Real Estate Construction		—		—		178,318		178,318
Farm Real Estate		—		653		34,788		35,441
Consumer and Other		—		—		13,989		13,989
Total	$	463	$	2,607	$	2,019,895	$	2,022,965

December 31, 2019	Loans acquired with credit deterioration		Loans individually evaluated for impairment		Loans collectively evaluated for impairment		Total
Allowance for loan losses:
Commercial & Agriculture	$	—	$	—	$	2,219	$	2,219
Commercial Real Estate:
Owner Occupied		—		9		2,532		2,541
Non-Owner Occupied		—		—		6,584		6,584
Residential Real Estate		—		82		1,500		1,582
Real Estate Construction		—		—		1,250		1,250
Farm Real Estate		—		—		344		344
Consumer and Other		—		—		247		247
Unallocated		—		—		0		0
Total	$	—	$	91	$	14,676	$	14,767
Outstanding loan balances:
Commercial & Agriculture	$	—	$	367	$	202,743	$	203,110
Commercial Real Estate:
Owner Occupied		—		426		245,180		245,606
Non-Owner Occupied		—		374		591,848		592,222
Residential Real Estate		467		1,764		460,801		463,032
Real Estate Construction		—		—		155,825		155,825
Farm Real Estate		—		666		33,448		34,114
Consumer and Other		—		—		15,061		15,061
Total	$	467	$	3,597	$	1,704,906	$	1,708,970

Credit Exposures by Internally Assigned Grades

June 30, 2020	Pass		Special Mention		Substandard		Doubtful		Ending Balance
Commercial & Agriculture	$	437,923	$	2,526	$	1,995	$	—	$	442,444
Commercial Real Estate:
Owner Occupied		241,144		8,867		2,903		—		252,914
Non-Owner Occupied		643,612		1,773		1,407		—		646,792
Residential Real Estate		78,028		486		5,731		—		84,245
Real Estate Construction		165,678		485		8		—		166,171
Farm Real Estate		32,302		550		2,589		—		35,441
Consumer and Other		1,024		—		21		—		1,045
Total	$	1,599,711	$	14,687	$	14,654	$	—	$	1,629,052

December 31, 2019	Pass		Special Mention		Substandard		Doubtful		Ending Balance
Commercial & Agriculture	$	199,649	$	2,236	$	1,225	$	—	$	203,110
Commercial Real Estate:
Owner Occupied		237,171		5,617		2,818		—		245,606
Non-Owner Occupied		588,633		2,155		1,434		—		592,222
Residential Real Estate		73,289		528		6,495		—		80,312
Real Estate Construction		145,251		—		9		—		145,260
Farm Real Estate		30,808		567		2,739		—		34,114
Consumer and Other		1,289		—		6		—		1,295
Total	$	1,276,090	$	11,103	$	14,726	$	—	$	1,301,919

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, 2020	Residential Real Estate		Real Estate Construction		Consumer and Other		Total
Performing	$	368,822	$	12,147	$	12,942	$	393,911
Nonperforming		—		—		2		2
Total	$	368,822	$	12,147	$	12,944	$	393,913

December 31, 2019	Residential Real Estate		Real Estate Construction		Consumer and Other		Total
Performing	$	382,720	$	10,565	$	13,766	$	407,051
Nonperforming		—		—		—		—
Total	$	382,720	$	10,565	$	13,766	$	407,051

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, 2020 and December 31, 2019.

June 30, 2020	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater		Total Past Due		Current		Purchased Credit- Impaired Loans		Total Loans		Past Due 90 Days and Accruing
Commercial & Agriculture	$	—	$	—	$	55	$	55	$	442,389	$	—	$	442,444	$	—
Commercial Real Estate:
Owner Occupied		323		—		585		908		252,006		—		252,914		—
Non-Owner Occupied		—		—		7		7		646,785		—		646,792		—
Residential Real Estate		177		418		1,049		1,644		450,960		463		453,067		—
Real Estate Construction		—		—		—		—		178,318		—		178,318		—
Farm Real Estate		—		—		4		4		35,437		—		35,441		—
Consumer and Other		70		23		12		105		13,884		—		13,989		2
Total	$	570	$	441	$	1,712	$	2,723	$	2,019,779	$	463	$	2,022,965	$	2

December 31, 2019	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	$	27	$	35	$	106	$	168	$	202,942	$	—	$	203,110	$	—
Commercial Real Estate:
Owner Occupied		453		63		663		1,179		244,427		—		245,606		—
Non-Owner Occupied		—		—		8		8		592,214		—		592,222		—
Residential Real Estate		2,399		198		1,775		4,372		458,193		467		463,032		—
Real Estate Construction		—		—		—		—		155,825		—		155,825		—
Farm Real Estate		—		—		7		7		34,107		—		34,114		—
Consumer and Other		129		46		—		175		14,886		—		15,061		—
Total	$	3,008	$	342	$	2,559	$	5,909	$	1,702,594	$	467	$	1,708,970	$	—

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, 2020 and December 31, 2019.

	June 30, 2020		December 31, 2019
Commercial & Agriculture	$	83	$	173
Commercial Real Estate:
Owner Occupied		832		938
Non-Owner Occupied		7		8
Residential Real Estate		3,753		4,183
Real Estate Construction		8		9
Farm Real Estate		259		284
Consumer and Other		19		4
Total	$	4,961	$	5,599

Schedule of Loan Modifications

There were no loans modified as TDRs during the three-month periods ended June 30, 2020 and 2019 and for the six-month period ended June 30, 2020. Loan modifications that are considered TDRs completed during the six-month period ended June 30, 2019 were as follows:

	For the Six-Month Period Ended
	June 30, 2019
	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		1		382		382
Residential Real Estate		—		—		—
Real Estate Construction		—		—		—
Farm Real Estate		—		—		—
Consumer and Other		—		—		—
Total Loan Modifications		1	$	382	$	382

Civista has received second customer deferral requests related to the COVID-19 pandemic for loans that had been previously modified. Through August 5, 2020, Civista granted a second modification on 75 loans totaling $95,153. Most of the second modifications consisted of the deferral of principal and/or interest payments as was granted under the first modification. Included in the second modifications were 17 loans totaling $33,160 that migrated from principal and interest deferrals to interest only payments. Eighty-seven loans have returned to making principal and interest payments and 651 loans are still within the original 90-day modification period. Details with respect to the second loan modifications are as follows:

	Number of				Weighted Average
Type of Loan	Loans		Balance		Interest Rate
			(In thousands)
Commercial & Agriculture		25	$	8,635		4.63	%
Commercial Real Estate:
Owner Occupied		23		14,343		4.59	%
Non-Owner Occupied		25		65,640		4.42	%
Real Estate Construction		2		6,535		3.42	%
Total		75	$	95,153		4.40	%

Impaired Loans Excluding PCI Loans

The following table includes the recorded investment and unpaid principal balances for impaired loans, excluding PCI loans, with the associated allowance amount, if applicable, as of June 30, 2020 and December 31, 2019.

	June 30, 2020						December 31, 2019
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded:
Commercial & Agriculture	$	—	$	—			$	367	$	367
Commercial Real Estate:
Owner Occupied		156		156				168		168
Non-Owner Occupied		368		368				374		374
Residential Real Estate		1,002		1,074				1,571		1,643
Farm Real Estate		653		653				666		666
Total		2,179		2,251				3,146		3,218
With an allowance recorded:
Commercial Real Estate:
Owner Occupied		247		247	$	8		258		258	$	9
Residential Real Estate		181		186		84		193		197		82
Total		428		433		92		451		455		91
Total:
Commercial & Agriculture		—		—		—		367		367		—
Commercial Real Estate:
Owner Occupied		403		403		8		426		426		9
Non-Owner Occupied		368		368		—		374		374		—
Residential Real Estate		1,183		1,260		84		1,764		1,840		82
Farm Real Estate		653		653		—		666		666		—
Total	$	2,607	$	2,684	$	92	$	3,597	$	3,673	$	91

The following table includes the average recorded investment and interest income recognized for impaired financing receivables for the three-month periods ended June 30, 2020 and 2019.

	June 30, 2020				June 30, 2019
For the three months ended	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial & Agriculture	$	—	$	—	$	367	$	6
Commercial Real Estate—Owner Occupied		409		7		465		9
Commercial Real Estate—Non-Owner Occupied		369		5		381		5
Residential Real Estate		1,462		11		1,137		15
Farm Real Estate		659		6		687		8
Total	$	2,899	$	29	$	3,037	$	43

	June 30, 2020				June 30, 2019
For the six months ended	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial & Agriculture	$	122	$	4	$	367	$	12
Commercial Real Estate—Owner Occupied		415		14		472		17
Commercial Real Estate—Non-Owner Occupied		371		10		264		9
Residential Real Estate		1,563		24		1,184		31
Farm Real Estate		662		13		690		15
Total	$	3,133	$	65	$	2,977	$	84

Schedule of Changes in Accretable Yield for PCI Loans

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

	For the Three-Month Period Ended June 30, 2020			For the Three-Month Period Ended June 30, 2019
	(In Thousands)			(In Thousands)
Balance at beginning of period	$	206		$	326
Acquisition of PCI loans		—			—
Accretion		(7	)		(67	)
Transfer from non-accretable to accretable		6			—
Balance at end of period	$	205		$	259

	For the Six-Month Period Ended June 30, 2020			For the Six-Month Period Ended June 30, 2019
	(In Thousands)			(In Thousands)
Balance at beginning of period	$	255		$	336
Acquisition of PCI loans		—			—
Accretion		(169	)		(77	)
Transfer fron non-accretable to accretable		119			—
Balance at end of period	$	205		$	259

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, 2020		At December 31, 2019
	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	$	976	$	1,149
Carrying amount		463		467