Civista Bancshares, Inc. (NASDAQ: CIVB) (“Civista”) today reported net income of $11.0 million, or $0.71 per common share, for the quarter ended June 30, 2025.
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— Net income of $11.0 million, a 56% increase or $3.9 million compared to $7.1 million for the second quarter 2024, and $10.2 million in the first quarter of 2025.
— Diluted earnings per common share of $0.71, for the second quarter of 2025, compared to $0.45 per diluted share, for the second quarter of 2024, and $0.66 per diluted share in the first quarter of 2025.
— Efficiency ratio of 64.5%, compared to 72.6% for the second quarter of 2024 and 64.9% for the first quarter of 2025.
— 232 basis points cost of funds for the second-quarter of 2025, 30 basis points lower than the 261 basis points cost of funds in the second quarter of 2024.
— The second-quarter included non-recurring items which positively impacted net income by approx. $0.9 million on a pre-tax basis, and $0.76 million on an after-tax basis.
CEO Commentary:
“Our strong second-quarter performance highlights continued momentum in net income and earnings per share,” said Dennis G. Shaffer, CEO and President of Civista. “Earnings per share rose to $0.71, up from $0.66 in Q1 and $0.45 a year ago, reflecting the success of our strategic initiatives and our focus on disciplined growth, customer relationships, and long-term shareholder value.”
“The announcement of our partnership with The Farmers Savings Bank marks an exciting step in expanding our presence in Northeast Ohio and reinforcing our foundation with a strong base of core deposits,” said Shaffer. “This, along with our successful $80.5 million capital raise earlier this month, positions us well for future growth.”
“We continue to maintain strong credit quality, which reflects the soundness of our underwriting and the strength of our customer relationships,” said Shaffer. “As demand for housing and construction financing grows, we remain focused on providing tailored financial solutions that support the evolving needs of the communities we serve.”
Results of Operations: For the three-month periods ended June 30, 2025, March 31, 2025 and June 30, 2024 and the six-month periods ended June 30, 2025 and June 30, 2024.
Second-Quarter 2025 Highlights
— Diluted earnings per common share of $0.71, for the second quarter of 2025, compared to $0.45 per diluted share, for the second quarter of 2024, and $0.66 per diluted share in the first quarter of 2025.
— Net income of $11.0 million, an increase of 56% or $3.9 million compared to $7.1 million for the second quarter 2024, and $10.2 million in the first quarter of 2025.
— Net interest margin (tax equivalent) of 3.64%, compared to 3.09% for the second quarter of 2024.
— Net interest income of $34.8 million, up $7.1 million or 25.5% compared to the second quarter of 2024.
— 196 basis points cost of deposits for the second-quarter of 2025, down 4 basis points compared to the first-quarter of 2025, and 14 basis points lower than the 210 basis points in the second-quarter of 2024.
— 232-basis points cost of funds for the second-quarter of 2025, 30 basis points lower than the 262-basis points cost of funds in the second-quarter of 2024.
— Noninterest expense of $27.5 million, $0.9 million or 3.2% lower than the second quarter of 2024.
— Efficiency ratio of 64.5%, compared to 72.6% for the second quarter of 2024 and 64.9% for the first quarter of 2025.
— Total period end loan growth of $47.1 million from first quarter 2025.
— Return on Assets of 1.06%, compared to 0.72% for the second quarter of 2024.
— Return on Equity of 11.02%, compared to 7.77% for the second quarter of 2024.
— Allowance for credit losses on loans / total loans of 1.28%.
— Based on the June 30, 2025, market close share price of $23.20, the $0.17 second quarter dividend is equivalent to an annualized yield of 2.93% and a dividend payout ratio of 23.96%.
— The second-quarter included non-recurring items which positively impacted net income by approx. $0.9 million on a pre-tax basis, and $0.76 million on an after-tax basis.
Assets
Total assets at June 30, 2025, were $4.2 billion, an increase of $39.2 million, or 0.9% from March 31, 2025, and $87.4 million, or 2.1%, from December 31, 2024.
— Loan and lease balances increased $47.1 million, or 1.5% since March 31, 2025, and $69.9 million, or 2.3% since December 31, 2024.
— Commercial Real Estate continued to grow due to consistent demand in the non-owner and owner occupied categories.
— Residential Real Estate has grown primarily due to more home construction loans as we meet the demand for housing and construction financing by our customers and communities.
Deposits & Borrowings
Total deposits at June 30, 2025, were $3.2 billion, a decrease of $42.7 million, or 1.32% from March 31, 2025, and a decrease of $15.7 million, or 0.5%, from December 31, 2024.
— Noninterest-bearing demand deposits decreased $47.5 million from December 31, 2024, primarily due to a $51.9 million decrease in noninterest-bearing accounts related to commercial business deposits, partially offset by a $9.9 million increase in noninterest-bearing public funds.
— Interest-bearing demand deposits increased $13.5 million from December 31, 2024, primarily due to a $27.9 million increase in interest-bearing public funds, somewhat offset by a $6.4 million decrease in Jumbo now deposits.
— Savings and money markets decreased $26.3 million from December 31, 2024, primarily due to decreases of $8.3 million and $36.6 million in retail money market savings and ICS demand and money markets, respectively. This was partially offset by an increase of $20.1 million in business money market savings.
— Time deposits increased $90.7 million from December 31, 2024, primarily due to a $69.8 million increase in Jumbo certificates of deposit and a $29.0 million increase in retail time certificates, partially offset by a $5.5 million decrease in reciprocal deposits.
— Brokered deposits totaled $454.1 million at June 30, 2025, which included brokered certificate of deposits of $450.0 million and brokered money markets of $4.1 million. Brokered deposits decreased $46.1 million from December 31, 2024.
— FHLB overnight advances totaled $433.5 million on June 30, 2025, up $73.5 million from March 31, 2025, and $94.5 million from December 31, 2024.
— FHLB term advances totaled $1.1 million on June 30, 2025, down from $1.4 million March 31, 2025, and down from $1.5 million on December 31, 2024.
Net Interest Income and Net Interest Margin
Net interest income increased $7.1 million, or 25.5%, for the second quarter of 2025, compared to the same period last year. In the second quarter of 2025, net interest income was increased by $1.6 million from non-recurring adjustments resulting from the Civista Leasing and Finance Division core system conversion.
— Interest income increased $5.7 million for the second quarter of 2025, compared to the same period last year, attributed to average interest-earning assets increasing $224.8 million coupled with a 26-basis point increase in asset yield.
— Interest expense decreased $1.4 million for the second quarter of 2025, compared to the same period last year. This was due to a 107-basis point reduction in higher costing FHLB borrowings coupled with a 136-basis point reduction in time deposits mostly offset by $272.2 million average balance growth in total deposits, resulting in a net increase of $249.3 million in average interest-bearing liabilities when comparing the second quarter of 2025 to the same period last year.
— Net interest margin increased 55-basis points to 3.64% for the second quarter of 2025, compared to 3.09% for the same period last year.
Net interest income increased $11.5 million, or 20.4%, for the six months ended June 30, 2025, compared to the same period last year. For the six months ended June 30, 2025, net interest income was increased by $1.6 million from non-recurring adjustments resulting from the Civista Leasing and Finance Division core system conversion.
— Interest income increased $9.3 million for the six-months ended June 30, 2025, compared to the same period last year, attributed to average interest-earning assets increasing $237.1 million coupled with a 15-basis point increase in asset yield.
— Interest expense decreased $2.2 million for the six months ended June 30, 2025, compared to the same period last year. This was due to a 106-basis point reduction in higher costing FHLB borrowings coupled with a 125-basis point drop in time deposits, mostly offset by $262.5 million average balance growth in deposits, resulting in a net increase of $267.6 million in average interest-bearing liabilities when comparing the six-months ended June 30, 2025, to the same period last year.
— Net interest margin increased 41-basis points to 3.57% for the six months ended June 30, 2025, compared to 3.16% for the same period last year.
Credit
Provision for credit losses (including provision for unfunded commitments) decreased $0.7 million for the second quarter of 2025 to $1.0 million compared to $1.7 million for the same period last year, and decreased $0.6 million compared to $1.6 million in the first quarter of 2025.
— Civista recorded net charge-offs of $1.0 million for the second quarter of 2025 compared to net charge-offs of $0.7 million for the same period of 2024, and $0.6 million in the first quarter of 2025.
— The allowance for credit losses to loans ratio was 1.28% at June 30, 2025, compared to 1.30% at March 31, 2025, and 1.29% at December 31, 2024.
— Non-performing assets at June 30, 2025, were $23.2 million, a decrease of $8.0 million or 25.7%, from March 31, 2025. The non-performing assets to assets ratio was 0.55% at June 30, 2025, and 0.75% at March 31, 2025. The decrease was primarily related to a loan pay-off occurring within the second quarter of 2025.
— The allowance for credit losses to non-performing loans increased to 176.1% at June 30, 2025, from 120.8% at December 31, 2024.
Noninterest Income
Noninterest income totaled $6.6 million, a decrease of $3.8 million or 36.5%, when compared to the same period last year.In the second quarter of 2025, noninterest income was reduced by $1.0 million from non-recurring adjustments resulting from the Civista Leasing and Finance Division core system conversion.
— Net gain/(loss) on equity securities decreased $0.1 million for the second quarter of 2025, compared to the same period last year, resulting from market valuation adjustments.
— Lease revenue and residual income decreased $3.0 million for the second quarter of 2025 compared to the same period last year, mainly due to stronger lease originations in 2024 coupled with a one-time non-recurring adjustment aforementioned above.
— Other income decreased $0.6 million for the second quarter of 2025 compared to the same period last year, primarily related to lower fee revenue from CLF.
Noninterest income totaled $14.4 million, a decrease of $4.2 million or 22.5%, when compared to the same period last year.For the six months ended June 30, 2025,noninterest income was reduced by $1.0 million from non-recurring adjustments resulting from the Civista Leasing and Finance Division core system conversion.
— Net gain on sale of loans decreased $0.3 million for the six months ended June 30, 2025, compared to the same period last year, resulting from timing of selling loans.
— Lease revenue and residual income decreased $2.8 million for the six months ended June 30, 2025, compared to the same period last year, due to stronger lease originations in 2024 coupled with a one-time non-recurring adjustment aforementioned above.
— Other income decreased $1.3 million for the six month ended June 30, 2025, compared to the same period last year, primarily related to lower fee revenue from the leasing division.
Noninterest Expense
Noninterest expense totaled $27.5 million, a decrease of $0.9 million or 3.2%, when compared to the same period last year. In the second quarter of 2025, noninterest expense was reduced by $0.3 million from non-recurring adjustments resulting from the Civista Leasing and Finance Division core system conversion.
— Compensation expense decreased $0.7 million for the second quarter of 2025 compared to the same period last year, primarily due to fewer employees and an increase in the deferral of salaries and wages related to the loan originations in the second quarter of 2025.
— The quarter-to-date average number of full-time equivalent (“FTE”) employees was 526 at June 30, 2025, compared with an average number of 537 for the same period in 2024.
— Professional fees increased $0.5 million for the second quarter of 2025 compared to the same period last year, mainly due to utilizing consultants to assist in transitioning Civista Leasing and Finance Division to a new core processing system.
— Equipment expense decreased $0.7 million for the second quarter of 2025 compared to the same period last year, due to normal equipment depreciation as well as decreases in equipment expense related to operating lease contracts.
— The efficiency ratio was 64.5% for the quarter ended June 30, 2025, compared to 72.6% for the same period last year. The change in the efficiency ratio is primarily due to a 3.2% decrease in noninterest expenses, a 25.5% increase in net interest income, partially offset by a 36.5% decrease in noninterest income.
Noninterest expense totaled $54.6 million, a decrease of $1.2 million or 2.2%, when compared to the same period last year. For the six months ended June 30, 2025,noninterest expense was reduced by $0.3 million from non-recurring adjustments resulting from the Civista Leasing and Finance Division core system conversion.
— Compensation expense decreased $2.1 million for the six months ended June 30, 2025 compared to the same period last year, primarily due to fewer employees, and an increase in the deferral of salaries and wages related to the loan originations as well as lower employee benefits costs in the first six months of 2025.
— The year-to-date average number of FTE employees was 523 at June 30, 2025, compared with an average number of 538 for the same period in 2024.
— Professional fees increased $1.5 million for the six months ended June 30, 2025, compared to the same period last year, mainly due to utilizing consultants to assist in transitioning Civista Leasing and Finance Division to a new core processing system.
— Equipment expense decreased $1.1 million for the six months ended June 30, 2025, compared to the same period last year, due to normal equipment depreciation as well as decreases in equipment expense related to operating lease contracts.
— The efficiency ratio was 64.7% for the six months ended June 30, 2025, compared to 72.4% for the same period last year. The change in the efficiency ratio is primarily due to a 2.2% decrease in noninterest expenses, a 20.4% increase in net interest income, partially offset by a 22.5% decrease in noninterest income.
Taxes
Civista's effective income tax rate for the second quarter of 2025 was 14.6% compared to 12.6% for the same period last year, and 14.8% for the first quarter of 2025.
Civista's effective income tax rate for the six months ended June 30, 2025, was 14.7% compared to 12.1% in the same period last year.
Capital
Total shareholders' equity at June 30, 2025, totaled $404.1 million, an increase of $6.7 million from March 31, 2025, and $15.6 million from December 31, 2024. This resulted from an increase of $15.9 million in retained earnings, partially offset by a reduction in accumulated other comprehensive loss of $0.7 million from December 31,2024.
Civista did not repurchase any shares in the second quarter of 2025 as the current repurchase plan is set to expire in April 2026. In January 2025, Civista liquidated 8,182 shares held by employees, at $20.39 per share, to satisfy tax obligations stemming from vesting of restricted shares.
Recent Developments
July 10, 2025, Civista Bancshares, Inc. announced the signing of a definitive merger agreement pursuant to which Civista will acquire The Farmers Savings Bank.
July 10, 2025, Civista Bancshares, Inc. announced an underwritten public offering of its common stock, including an overallotment option. The offering totaled 3,788,238 shares at a price of $21.25 per share, raising approximately $80,500,058.
Conference Call and Webcast Civista Bancshares, Inc. will also host a conference call to discuss the Company's financial results for the second quarter of 2025 at 1:00 p.m. ET on Thursday, July 24, 2025. Interested parties can access the live webcast of the conference call through the Investor Relations section of the Company's website, www.civb.com. Participants can also listen to the conference call by dialing 800-836-8184 and ask to be joined into theCivista Bancshares, Inc. second quarter 2025 earnings call. Please log in or dial in at least 10 minutes prior to the start time to ensure a connection. An archive of the webcast will be available for one year on the Investor Relations section of the Company's website (www.civb.com).
About Civista Bancshares Civista Bancshares, Inc., is a $4.2 billion financial holding company headquartered in Sandusky, Ohio. Its primary subsidiary, Civista Bank, was founded in 1884 and provides full-service banking, commercial lending, mortgage, and wealth management services. Today, Civista Bank operates 42 locations across Ohio, Southeastern Indiana and Northern Kentucky. Civista Bank also offers commercial equipment leasing services for businesses nationwide through its Civista Leasing and Finance Division. Civista Bancshares' common shares are traded on the NASDAQ Capital Market under the symbol “CIVB”. Learn more at www.civb.com.
Forward Looking Statements This press release may contain forward-looking statements regarding the financial performance, business prospects, growth and operating strategies of Civista. For these statements, Civista claims the protections of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this press release should be considered in conjunction with the other information available about Civista, including the information in the filings we make with the Securities and Exchange Commission.Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management's expectations and are subject to a number of risks and uncertainties. We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include risk factors relating to the banking industry and the other factors detailed from time to time in Civista' reports filed with the Securities and Exchange Commission, including those described in “Item 1A Risk Factors” of Part I of Civista's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and any additional risks identified in the Company's subsequent Form 10-Q's. Undue reliance should not be placed on the forward-looking statements, which speak only as of the date hereof. Civista does not undertake, and specifically disclaims any obligation, to update any forward-looking statement to reflect the events or circumstances after the date on which the forward-looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.
Non-GAAP Financial Measures This press release and related materials may contain references to measures which are not defined in generally accepted accounting principles (“GAAP”). These financial measures have been included as they provide meaningful supplemental information to assess trends in the Corporation's results of operations. Information concerning these non-GAAP financial measures can be found in the financial tables. Management believes these measures are meaningful because they reflect adjustments commonly made by management, investors, regulators, and analysts to evaluate the adequacy of earnings per common share, provide a greater understanding of ongoing operations and enhance comparability of results with prior periods.
Average Balance Analysis(Unaudited – Dollars in thousands) Three Months Ended June 30, 2025 2024 Average Yield/ Average Yield/Assets: balance Interest rate * balance Interest rate *Interest-earning assets:Loans ** $ 3,136,091 $ 49,972 6.39 % $ 2,964,377 $ 44,946 6.10 %Taxable securities *** 404,104 3,751 3.42 % 351,497 3,070 3.11 %Non-taxable securities *** 277,931 2,338 3.88 % 288,128 2,372 3.87 %Interest-bearing deposits in other banks 23,243 210 3.61 % 15,807 205 5.22 %Total interest-earning assets *** $ 3,841,369 $ 56,271 5.84 % $ 3,619,809 $ 50,593 5.58 %Noninterest-earning assets:Cash and due from financial institutions 40,329 32,564Premises and equipment, net 44,687 53,654Accrued interest receivable 13,919 13,230Intangible assets 132,887 134,473Bank owned life insurance 63,302 61,871Other assets 59,948 65,818Less allowance for loan losses (40,546) (39,190)Total Assets $ 4,155,895 $ 3,942,229Liabilities and Shareholders' Equity:Interest-bearing liabilities:Demand and savings $ 1,551,856 $ 5,632 1.46 % $ 1,339,503 $ 3,054 0.92 %Time 986,644 9,926 4.04 % 926,831 12,451 5.40 %Short-term FHLB borrowings 412,545 4,603 4.48 % 440,670 6,078 5.55 %Long-term FHLB borrowings 1,260 8 2.57 % 2,031 12 2.38 %Other borrowings 5,874 123 8.40 % – – 0.00 %Subordinated debentures 104,145 1,165 4.49 % 103,999 1,247 4.83 %Total interest-bearing liabilities $ 3,062,324 $ 21,457 2.81 % $ 2,813,034 $ 22,842 3.27 %Noninterest-bearing deposits 652,092 703,046Other liabilities 40,564 60,365Shareholders' equity 400,915 365,784Total Liabilities and Shareholders' Equity $ 4,155,895 $ 3,942,229Net interest income and interest rate spread $ 34,814 3.03 % $ 27,751 2.31 %Net interest margin *** 3.64 % 3.09 %* – Average yields are presented on a tax equivalent basis. The tax equivalent effect associated with loans and investments, included in the yields above, was $622 thousand and $631 thousand for the periods ended June 30, 2025 and 2024, respectively.** – Average balance includes nonaccrual loans*** – Average yield on investments were calculated by adjusting the average balances of taxable and nontaxable securities by unrealized losses of $64.1 million and $69.4 million, respectively. These adjustments were also made when calculating the yield on earning assets and the margin.
Average Balance Analysis(Unaudited – Dollars in thousands) Six Months Ended June 30, 2025 2024 Average Yield/ Average Yield/Assets: balance Interest rate * balance Interest rate *Interest-earning assets:Loans ** $ 3,117,867 $ 97,618 6.31 % $ 2,922,204 $ 89,431 6.15 %Taxable securities *** 400,518 7,306 3.37 % 351,156 6,004 3.06 %Non-taxable securities *** 282,183 4,678 3.90 % 291,758 4,747 3.86 %Interest-bearing deposits in other banks 21,081 402 3.84 % 21,062 539 5.15 %Total interest-earning assets *** $ 3,821,649 $ 110,004 5.78 % $ 3,586,180 $ 100,721 5.62 %Noninterest-earning assets:Cash and due from financial institutions 41,758 31,123Premises and equipment, net 45,541 54,317Accrued interest receivable 13,744 12,977Intangible assets 133,076 134,672Bank owned life insurance 63,110 61,664Other assets 59,271 62,414Less allowance for loan losses (40,252) (38,273)Total Assets $ 4,137,897 $ 3,905,074Liabilities and Shareholders' Equity:Interest-bearing liabilities:Demand and savings $ 1,565,328 $ 11,360 1.46 % $ 1,361,364 $ 7,039 1.04 %Time 973,202 19,914 4.13 % 914,637 24,452 5.38 %Short-term FHLB borrowings 384,224 8,532 4.48 % 384,679 10,593 5.54 %Long-term FHLB borrowings 1,334 17 2.57 % 2,153 25 2.34 %Other borrowings 6,150 268 8.78 % – – 0.00 %Subordinated debentures 104,124 2,326 4.50 % 103,978 2,489 4.81 %Total interest-bearing liabilities $ 3,034,362 $ 42,417 2.82 % $ 2,766,811 $ 44,598 3.24 %Noninterest-bearing deposits 661,382 707,806Other liabilities 43,174 62,331Shareholders' equity 398,979 368,126Total Liabilities and Shareholders' Equity $ 4,137,897 $ 3,905,074Net interest income and interest rate spread $ 67,587 2.96 % $ 56,123 2.38 %Net interest margin *** 3.57 % 3.16 %* – Average yields are presented on a tax equivalent basis. The tax equivalent effect associated with loans and investments, included in the yields above, was $1.2 million and $1.3 million for the periods ended June 30, 2025 and 2024, respectively.** – Average balance includes nonaccrual loans*** – 2025 and 2024 average yield on investments were calculated by adjusting the average balances of taxable and nontaxable securities by unrealized losses of $61.6 million and $64.3 million, respectively. These adjustments were also made when calculating the yield on earning assets and the margin.
Noninterest income(unaudited – dollars in thousands) Three months ended June 30, 2025 2024 $ Change % ChangeService charges $ 1,564 $ 1,488 $ 76 5.1 %Net gain (loss) on equity securities (74) 74 (148) -200.0 %Net gain on sale of loans and leases 841 888 (47) -5.3 %ATM/Interchange fees 1,418 1,416 2 0.1 %Wealth management fees 1,325 1,337 (12) -0.9 %Lease revenue and residual income 525 3,529 (3,004) -85.1 %Bank owned life insurance 386 367 19 5.2 %Swap fees 53 65 (12) -18.5 %Other 551 1,213 (662) -54.6 % Total noninterest income $ 6,589 $ 10,377 $ (3,788) -36.5 %Noninterest income(unaudited – dollars in thousands) Six months ended June 30, 2025 2024 $ Change % ChangeService charges $ 3,088 $ 2,928 $ 160 5.5 %Net gain (loss) on equity securities (103) (67) (36) -53.7 %Net gain on sale of loans and leases 1,445 1,751 (306) -17.5 %ATM/Interchange fees 2,744 2,799 (55) -2.0 %Wealth management fees 2,665 2,613 52 2.0 %Lease revenue and residual income 2,421 5,203 (2,782) -53.5 %Bank owned life insurance 773 717 56 7.8 %Swap fees 125 122 3 2.5 %Other 1,291 2,568 (1,277) -49.7 % Total noninterest income $ 14,449 $ 18,634 $ (4,185) -22.5 %Noninterest expense(unaudited – dollars in thousands) Three months ended June 30, 2025 2024 $ Change % ChangeCompensation expense $ 15,011 $ 15,740 $ (729) -4.6 %Net occupancy Expense 1,419 1,298 121 9.3 %Contracted data processing 536 559 (23) -4.1 %FDIC Assessment 689 548 141 25.7 %State franchise tax 634 479 155 32.4 %Professional services 1,798 1,249 549 44.0 %Equipment expense 1,764 2,434 (670) -27.5 %Amortization of core deposit intangible 338 366 (28) -7.7 %ATM/Interchange expense 683 632 51 8.1 %Marketing 289 445 (156) -35.1 %Software maintenance expense 1,294 1,176 118 10.0 %Other 3,027 3,463 (436) -12.6 % Total noninterest expense $ 27,482 $ 28,389 $ (907) -3.2 %Noninterest expense(unaudited – dollars in thousands) Six months ended June 30, 2025 2024 $ Change % ChangeCompensation expense $ 29,054 $ 31,197 $ (2,143) -6.9 %Net occupancy expense 3,053 2,666 387 14.5 %Contracted data processing 1,103 1,104 (1) -0.1 %FDIC Assessment 1,562 1,032 530 51.4 %State franchise tax 1,160 964 196 20.3 %Professional services 3,888 2,398 1,490 62.1 %Equipment expense 3,867 4,969 (1,102) -22.2 %Amortization of core deposit intangible 670 757 (87) -11.5 %ATM/Interchange expense 1,263 1,257 6 0.5 %Marketing 585 924 (339) -36.7 %Software maintenance expense 2,571 2,365 206 8.7 %Other 5,832 6,198 (366) -5.9 % Total noninterest expense $ 54,608 $ 55,831 $ (1,223) -2.2 %End of period loan and lease balances(unaudited – dollars in thousands) June 30, December 31, 2025 2024 $ Change % ChangeCommercial and Agriculture $ 338,598 $ 328,488 $ 10,110 3.1 %Commercial Real Estate:Owner Occupied 378,248 374,367 3,881 1.0 %Non-owner Occupied 1,263,612 1,225,991 37,621 3.1 %Residential Real Estate 815,408 763,869 51,539 6.7 %Real Estate Construction 277,643 305,992 (28,349) -9.3 %Farm Real Estate 23,866 23,035 831 3.6 %Lease financing receivable 42,758 46,900 (4,142) -8.8 %Consumer and Other 10,991 12,588 (1,597) -12.7 % Total Loans $ 3,151,124 $ 3,081,230 $ 69,894 2.3 %End of period deposit balances(unaudited – dollars in thousands) June 30, December 31, 2025 2024 $ Change % ChangeNoninterest-bearing demand $ 647,609 $ 695,094 $ (47,485) -6.8 %Interest-bearing demand 433,089 419,583 13,506 3.2 %Savings and money market 1,100,660 1,126,974 (26,314) -2.3 %Time deposits 560,702 469,954 90,748 19.3 %Brokered deposits 454,147 500,265 (46,118) -9.2 % Total Deposits $ 3,196,207 $ 3,211,870 $ (15,663) -0.5 %
Allowance for Credit Losses(dollars in thousands) Three months ended June 30, 2025 2024Beginning of period $ 40,284 $ 38,849Charge-offs (1,092) (887)Recoveries 92 157Provision 1,171 1,800End of period $ 40,455 $ 39,919Allowance for Credit Losses(dollars in thousands) Six months ended June 30, 2025 2024Beginning of period $ 39,669 $ 37,160Charge-offs (2,068) (1,538)Recoveries 435 455Provision 2,419 3,842End of period $ 40,455 $ 39,919Allowance for Unfunded Commitments(dollars in thousands) Three months ended June 30, 2025 2024Beginning of period $ 3,699 $ 3,851Provision (146) (145)End of period $ 3,553 $ 3,706Allowance for Unfunded Commitments(dollars in thousands) Six months ended June 30, 2025 2024Beginning of period $ 3,380 $ 3,901Provision 173 (195)End of period $ 3,553 $ 3,706(dollars in thousands) June 30, December 31, 2025 2024Non-accrual loans $ 22,742 $ 30,950Restructured loans 7 1,67790+ Days Past Due, Still Accruing 223 225Total non-performing loans 22,972 32,852Other Real Estate Owned 209 -Total non-performing assets $ 23,181 $ 32,852
Civista Bancshares, Inc.Financial Highlights(Unaudited, dollars in thousands, except share and per share amounts)Consolidated Condensed Statement of Operations Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024Interest income $ 56,271 $ 50,593 $ 110,004 $ 100,721Interest expense 21,457 22,842 42,417 44,598Net interest income 34,814 27,751 67,587 56,123Provision for credit losses 1,171 1,800 2,419 3,842Provision for unfunded commitments (146) (145) 173 (195)Net interest income after provision 33,789 26,096 64,995 52,476Noninterest income 6,589 10,377 14,449 18,634Noninterest expense 27,482 28,389 54,608 55,831Income before taxes 12,896 8,084 24,836 15,279Income tax expense 1,881 1,020 3,653 1,855Net income 11,015 7,064 21,183 13,424Preferred stock dividends – – – -Net income availableto common shareholders $ 11,015 $ 7,064 $ 21,183 $ 13,424Dividends paid per common share $ 0.17 $ 0.16 $ 0.34 $ 0.32Earnings per common shareBasicNet income $ 11,015 $ 7,064 $ 21,183 $ 13,424Less allocation of earnings anddividends to participating securities 45 266 72 492Net income available to commonshareholders – basic $ 10,970 $ 6,798 $ 21,111 $ 12,932Weighted average common shares outstanding 15,524,490 15,729,049 15,506,750 15,712,499Less average participating securities 96,692 591,712 81,784 576,528Weighted average number of shares outstandingused to calculate basic earnings per share 15,427,798 15,137,337 15,424,966 15,135,971Earnings per common shareBasic $ 0.71 $ 0.45 $ 1.37 $ 0.85Diluted $ 0.71 $ 0.45 $ 1.37 $ 0.85Selected financial ratios:Return on average assets 1.06 % 0.72 % 1.03 % 0.69 %Return on average equity 11.02 % 7.77 % 10.71 % 7.33 %Dividend payout ratio 23.96 % 35.63 % 24.89 % 37.46 %Net interest margin (tax equivalent) 3.64 % 3.09 % 3.57 % 3.16 %Effective tax rate 14.59 % 12.62 % 14.71 % 12.10 %
Selected Balance Sheet Items(Dollars in thousands, except share and per share amounts) June 30, December 31, 2025 2024 (unaudited) (unaudited)Cash and due from financial institutions $ 73,858 $ 63,155Investment in time deposits 715 1,450Investment securities 645,228 650,488Loans held for sale 10,733 665Loans 3,151,124 3,081,230Less: allowance for credit losses (40,455) (39,669)Net loans 3,110,669 3,041,561Other securities 36,195 30,352Premises and equipment, net 42,922 47,166Goodwill and other intangibles 132,631 133,403Bank owned life insurance 63,555 62,783Other assets 69,363 67,446Total assets $ 4,185,869 $ 4,098,469Total deposits $ 3,196,207 $ 3,211,870Short-term Federal Home Loan Bank advances 433,500 339,000Long-term Federal Home Loan Bank advances 1,103 1,501Subordinated debentures 104,172 104,089Other borrowings 5,379 6,293Accrued expenses and other liabilities 41,371 47,214Total liabilities 3,781,732 3,709,967Common shares 312,589 312,037Retained earnings 221,321 205,408Treasury shares (75,753) (75,586)Accumulated other comprehensive loss (54,020) (53,357)Total shareholders' equity 404,137 388,502Total liabilities and shareholders' equity $ 4,185,869 $ 4,098,469Shares outstanding at period end 15,529,342 15,487,667Book value per share $ 20.13 $ 20.15Equity to asset ratio 7.47 % 7.61 %Selected asset quality ratios:Allowance for credit losses to total loans 1.28 % 1.29 %Non-performing assets to total assets 0.55 % 0.80 %Allowance for credit losses to non-performing loans 176.11 % 120.75 %Non-performing asset analysisNonaccrual loans $ 22,742 $ 30,950Restructured loans 7 1,677Other real estate owned 209 -90+ Days Past Due, Still Accruing 223 225Total $ 23,181 $ 32,852
Supplemental Financial Information(Unaudited – dollars in thousands except share data) June 30, March 31, December 31, September 30, June 30,End of Period Balances 2025 2025 2024 2024 2024AssetsCash and due from banks $ 73,858 $ 90,456 $ 63,155 $ 74,662 $ 55,760Investment in time deposits 715 960 1,450 1,450 1,450Investment securities 645,228 648,537 650,488 629,113 611,866Loans held for sale 10,733 4,324 665 8,299 5,369Loans and leases 3,151,124 3,104,036 3,081,230 3,043,946 3,014,996Allowance for credit losses (40,455) (40,284) (39,669) (41,268) (39,919) Net Loans 3,110,669 3,063,752 3,041,561 3,002,678 2,975,077Other securities 36,195 32,592 30,352 32,633 37,615Premises and equipment, net 42,922 45,107 47,166 49,967 52,142Goodwill and other intangibles 132,631 133,026 133,403 133,829 134,227Bank owned life insurance 63,555 63,170 62,783 62,912 63,367Other assets 69,363 64,793 67,446 65,880 75,041Total Assets $ 4,185,869 $ 4,146,717 $ 4,098,469 $ 4,061,423 $ 4,011,914LiabilitiesTotal deposits $ 3,196,207 $ 3,238,888 $ 3,211,870 $ 3,223,732 $ 2,977,616Federal Home Loan Bank advances – short term 433,500 360,000 339,000 287,047 500,500Federal Home Loan Bank advances – long term 1,103 1,355 1,501 1,598 1,841Subordinated debentures 104,172 104,130 104,089 104,067 104,026Other borrowings 5,379 6,140 6,293 6,319 7,156Accrued expenses and other liabilities 41,371 38,770 47,214 44,222 46,967Total liabilities 3,781,732 3,749,283 3,709,967 3,666,985 3,638,106Shareholders' EquityCommon shares 312,589 312,192 312,037 311,901 311,529Retained earnings 221,321 212,944 205,408 198,034 192,186Treasury shares (75,753) (75,753) (75,586) (75,586) (75,574)Accumulated other comprehensive loss (54,020) (51,949) (53,357) (39,911) (54,333)Total shareholders' equity 404,137 397,434 388,502 394,438 373,808Total Liabilities and Shareholders' Equity $ 4,185,869 $ 4,146,717 $ 4,098,469 $ 4,061,423 $ 4,011,914Shares outstanding at period end 15,529,342 15,519,072 15,487,667 15,736,528 15,737,222Book value per share $ 20.13 $ 20.12 $ 20.15 $ 25.07 $ 23.75Equity to asset ratio 7.47 % 7.53 % 7.61 % 9.71 % 9.32 % June 30, March 31, December 31, September 30, June 30, 2025 2025 2024 2024 2024Selected asset quality ratios:Allowance for credit losses to total loans 1.28 % 1.30 % 1.29 % 1.36 % 1.32 %Non-performing assets to total assets 0.55 % 0.75 % 0.80 % 0.45 % 0.43 %Allowance for credit losses to non-performing loans 176.11 % 129.99 % 120.75 % 227.36 % 233.47 %Non-performing asset analysisNonaccrual loans $ 22,742 $ 30,989 $ 30,950 $ 16,488 $ 15,209Restructured loans 7 – 1,677 1,663 1,88990+ Days Past Due, Still Accruing 223 146 225 – -Other real estate owned 209 209 – 61 -Total $ 23,181 $ 31,344 $ 32,852 $ 18,212 $ 17,098Supplemental Financial Information(Unaudited – dollars in thousands except share data) June 30, March 31, December 31, September 30, June 30,Quarterly Average Balances 2025 2025 2024 2024 2024Assets:Earning assets $ 3,841,369 $ 3,801,709 $ 3,738,607 $ 3,705,866 $ 3,619,809Securities 682,035 683,374 655,556 654,838 639,625Loans 3,136,091 3,099,440 3,061,991 3,031,884 2,964,377Liabilities and Shareholders' EquityTotal deposits $ 3,190,592 $ 3,209,277 $ 3,285,485 $ 3,092,583 $ 2,969,380Interest-bearing deposits 2,538,500 2,538,561 2,582,652 2,405,219 2,266,334Other interest-bearing liabilities 523,824 461,100 320,225 493,759 546,700Total shareholders' equity 400,915 397,021 391,591 381,392 365,784Supplemental Financial Information(Unaudited – dollars in thousands) June 30, March 31, December 31, September 30, June 30,End of period loan and lease balances 2025 2025 2024 2024 2024Commercial and Agriculture $ 338,598 $ 330,627 $ 328,488 $ 304,639 $ 318,499Commercial Real Estate:Owner Occupied 378,248 378,095 374,367 375,751 377,308Non-owner Occupied 1,263,612 1,246,025 1,225,991 1,205,453 1,213,341Residential Real Estate 815,408 773,349 763,869 751,825 729,213Real Estate Construction 277,643 297,589 305,992 318,063 283,446Farm Real Estate 23,866 22,399 23,035 24,122 24,376Lease financing receivable 42,758 44,570 46,900 49,453 53,461Consumer and Other 10,991 11,382 12,588 14,640 15,352Total Loans $ 3,151,124 $ 3,104,036 $ 3,081,230 $ 3,043,946 $ 3,014,996Supplemental Financial Information(Unaudited – dollars in thousands) June 30, March 31, December 31, September 30, June 30,End of period deposit balances 2025 2025 2024 2024 2024Noninterest-bearing demand $ 647,609 $ 648,683 $ 695,094 $ 686,316 $ 691,203Interest-bearing demand 433,089 467,601 419,583 420,333 409,848Savings and money market 1,100,660 1,146,480 1,126,974 1,111,771 940,312Time deposits 560,702 515,910 469,954 456,973 418,047Brokered deposits 454,147 460,214 500,265 548,339 518,207Total Deposits $ 3,196,207 $ 3,238,888 $ 3,211,870 $ 3,223,732 $ 2,977,617Supplemental Financial Information(Unaudited – dollars in thousands except share data) Three Months Ended June 30, March 31, December 31, September 30, June 30,Income statement 2025 2025 2024 2024 2024Total interest and dividend income $ 56,271 $ 53,733 $ 53,233 $ 52,741 $ 50,593Total interest expense 21,457 20,960 21,878 23,508 22,842 Net interest income 34,814 32,773 31,355 29,233 27,751Provision for credit losses 1,171 1,248 697 1,346 1,800Provision for unfunded commitments (146) 319 (1) (325) (145)Noninterest income 6,589 7,860 9,015 10,099 10,377Noninterest expense 27,482 27,126 28,296 28,394 28,389 Income before taxes 12,896 11,940 11,378 9,917 8,084Income tax expense 1,881 1,772 1,485 1,551 1,020 Net income $ 11,015 $ 10,168 $ 9,893 $ 8,366 $ 7,064Preferred stock dividends – – – – - Net income available to common shareholders $ 11,015 $ 10,168 $ 9,893 $ 8,366 $ 7,064Per share dataEarnings per common share BasicNet income $ 11,015 $ 10,168 $ 9,893 $ 8,366 $ 7,064Less allocation of earnings anddividends to participating securities 45 44 213 177 153Net income available to common shareholders – basic $ 10,970 $ 10,124 $ 9,680 $ 8,189 $ 6,911Weighted average common shares outstanding 15,524,490 15,488,813 15,734,243 15,736,966 15,729,049 Less average participating securities 96,692 66,711 339,626 332,531 341,567 Weighted average number of shares outstanding 15,427,798 15,422,102 15,394,617 15,404,435 15,387,482 used to calculate basic earnings per shareEarnings per common share Basic $ 0.71 $ 0.66 $ 0.63 $ 0.53 $ 0.45 Diluted $ 0.71 $ 0.66 $ 0.63 $ 0.53 $ 0.45Common shares dividend paid $ 2,638 $ 2,636 $ 2,518 $ 2,518 $ 2,516Dividends paid per common share 0.17 0.17 0.16 0.16 0.16 Three Months Ended June 30, March 31, December 31, September 30, June 30,Selected financial ratios 2025 2025 2024 2024 2024Return on average assets 1.06 % 1.00 % 0.97 % 0.83 % 0.72 %Return on average equity 11.02 % 10.39 % 10.43 % 8.73 % 7.77 %Dividend payout ratio 23.96 % 25.90 % 25.45 % 30.10 % 35.63 %Net interest margin (tax equivalent) 3.64 % 3.51 % 3.36 % 3.19 % 3.09 %Effective tax rate 14.59 % 14.84 % 13.05 % 15.63 % 12.62 %Supplemental Financial Information(Unaudited – dollars in thousands) Three Months Ended June 30, March 31, December 31, September 30, June 30,Noninterest income 2025 2025 2024 2024 2024Service charges $ 1,564 $ 1,524 $ 1,591 $ 1,595 $ 1,488Net gain (loss) on equity securities (74) (29) 96 223 74Net gain on sale of loans and leases 841 604 1,259 1,427 888ATM/Interchange fees 1,418 1,326 1,640 1,402 1,416Wealth management fees 1,325 1,340 1,464 1,443 1,337Lease revenue and residual income 525 1,896 1,280 2,428 3,529Bank owned life insurance 386 387 771 717 367Swap fees 53 72 66 43 65Other 551 740 848 821 1,213Total noninterest income $ 6,589 $ 7,860 $ 9,015 $ 10,099 $ 10,377Supplemental Financial Information(Unaudited – dollars in thousands) Three Months Ended June 30, March 31, December 31, September 30, June 30,Noninterest expense 2025 2025 2024 2024 2024Compensation expense $ 15,011 $ 14,043 $ 14,899 $ 15,726 $ 15,740Net occupancy Expense 1,419 1,634 1,138 1,293 1,298Contracted data processing 536 567 508 636 559FDIC Assessment 689 873 1,039 560 548State franchise tax 634 526 608 480 479Professional services 1,798 2,090 2,247 1,134 1,249Equipment expense 1,764 2,103 2,240 2,345 2,434Amortization of core deposit intangible 338 332 363 364 366ATM/Interchange expense 683 580 671 616 632Marketing 289 296 448 716 445Software maintenance expense 1,294 1,277 1,376 1,203 1,176Other 3,027 2,805 2,759 3,321 3,463Total noninterest expense $ 27,482 $ 27,126 $ 28,296 $ 28,394 $ 28,389Supplemental Financial Information(Unaudited – dollars in thousands except share data) Three Months Ended June 30, March 31, December 31, September 30, June 30,Asset quality 2025 2025 2024 2024 2024Allowance for credit losses:Beginning of period $ 40,284 $ 39,669 $ 41,268 $ 39,919 $ 38,849 Charge-offs (1,092) (976) (2,335) (42) (887) Recoveries 92 343 39 45 157 Provision 1,171 1,248 697 1,346 1,800End of period $ 40,455 $ 40,284 $ 39,669 $ 41,268 $ 39,919Allowance for unfunded commitments:Beginning of period $ 3,699 $ 3,380 $ 3,381 $ 3,706 $ 3,851 Charge-offs – – – – - Recoveries – – – – - Provision (146) 319 (1) (325) (145)End of period $ 3,553 $ 3,699 $ 3,380 $ 3,381 $ 3,706RatiosAllowance to total loans 1.28 % 1.30 % 1.29 % 1.36 % 1.32Allowance to nonperforming assets 174.52 % 129.12 % 121.58 % 226.60 % 233.47Allowance to nonperforming loans 176.11 % 129.99 % 121.58 % 227.36 % 233.47Nonperforming assetsNon-accrual loans $ 22,742 $ 30,989 $ 30,950 $ 16,488 $ 15,209Restructured loans 7 – 1,677 1,633 1,88990+ Days Past Due, Still Accruing 223 – – – -Total non-performing loans 22,972 30,989 32,627 18,121 17,098Other Real Estate Owned 209 209 – 61 -Total non-performing assets $ 23,181 $ 31,198 $ 32,627 $ 18,182 $ 17,098Capital and liquidityTier 1 leverage ratio 8.80 % 8.66 % 8.60 % 8.45 % 8.59Tier 1 risk-based capital ratio 11.18 % 10.97 % 10.47 % 10.29 % 10.63Total risk-based capital ratio 14.73 % 14.53 % 13.98 % 13.81 % 14.28Tangible common equity ratio (1) 6.70 % 6.59 % 6.43 % 6.64 % 6.19(1) See reconciliation of non-GAAP measures at the end of this press release.Reconciliation of Non-GAAP Financial Measures(Unaudited – dollars in thousands except share data) June 30, March 31, December 31, September 30, June 30, 2025 2025 2024 2024 2024Tangible Common EquityTotal Shareholder's Equity – GAAP $ 404,137 $ 397,434 $ 388,502 $ 394,438 $ 373,808Less: Preferred Equity – – – – -Less: Goodwill and intangible assets 132,631 133,026 133,403 133,829 134,227Tangible common equity (Non-GAAP) $ 271,506 $ 264,408 $ 255,099 $ 260,609 $ 239,581Total Shares Outstanding 15,529,342 15,519,072 15,487,667 15,736,528 15,737,222Tangible book value per share $ 17.48 $ 17.04 $ 16.47 $ 16.56 $ 15.25Tangible AssetsTotal Assets – GAAP $ 4,185,869 $ 4,146,717 $ 4,098,469 $ 4,061,423 $ 4,011,914Less: Goodwill and intangible assets 132,631 133,026 133,403 133,829 134,227Tangible assets (Non-GAAP) $ 4,053,238 $ 4,013,691 $ 3,965,066 $ 3,927,594 $ 3,877,687Tangible common equity to tangible assets 6.70 % 6.59 % 6.43 % 6.64 % 6.19 %Reconciliation of Non-GAAP Financial Measures(Unaudited – dollars in thousands except share data) Three Months Ended June 30, March 31, December 31, September 30, June 30,Efficiency ratio (non-GAAP): 2025 2025 2024 2024 2024Noninterest expense (GAAP) $ 27,482 $ 27,126 $ 28,296 $ 27,981 $ 28,555Less: Amortization of intangible assets expense 339 332 363 363 366Less: Acquisition related expenses – – – – -Noninterest expense (non-GAAP) $ 27,143 $ 26,794 $ 27,933 $ 27,618 $ 28,189Net interest income (GAAP) $ 34,814 $ 32,773 $ 31,355 $ 29,233 $ 27,751Plus: Taxable equivalent adjustment 621 622 627 630 631Noninterest income (GAAP) 6,589 7,860 9,015 9,686 10,543Less: Net gains (losses) on equity securities (74) (29) 96 223 74Net interest income (FTE) plus noninterest income (non-GAAP) $ 42,098 $ 41,284 $ 40,901 $ 39,326 $ 38,851Efficiency ratio (non-GAAP) 64.5 % 64.9 % 68.3 % 70.2 % 72.6 %
Supplemental Financial InformationConsolidated Condensed Statement of Operations(Unaudited – dollars in thousands except share data) Three Months Ended Six Months Ended June 30, 2025 June 30, 2025 Non-Recurring Non-Recurring As Reported Adjustments As Adjusted As Reported Adjustments As AdjustedInterest income $ 56,271 $ 1,621 $ 54,650 $ 110,004 $ 1,621 $ 108,383Interest expense 21,457 – 21,457 42,417 – 42,417Net interest income 34,814 1,621 33,193 67,587 1,621 65,966Provision for credit losses 1,171 – 1,171 2,419 – 2,419Provision for unfunded commitments (146) – (146) 173 – 173Net interest income after provision 33,789 1,621 32,168 64,995 1,621 63,374Noninterest income 6,589 (1,044) 7,633 14,449 (1,044) 15,493Noninterest expense 27,482 (311) 27,793 54,608 (311) 54,919Income before taxes 12,896 888 12,008 24,836 888 23,948Income tax expense 1,881 131 1,750 3,653 131 3,522Net income $ 11,015 $ 757 $ 10,258 $ 21,183 $ 757 $ 20,426
Non-recurring adjustments summary:
Second-Quarter 2025The quarter ended June 30, 2025 was positively impacted by non-recurring adjustments to our loan valuation resulting from a core system conversion during the second quarter of 2025, which positively impacted net income for the quarter ended June 30, 2025 by approximately $0.6 million on a pre-tax basis, and the release of a reserve established in the third-quarter of 2024 for a reconciling item associated with a system conversion, which positively impacted net income for the quarter ended June 30, 2025 by approximately $0.3 million on a pre-tax basis.
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