Civista Bancshares, Inc. Announces First Quarter 2022 Financial Results
SANDUSKY, Ohio, April 28, 2022 /PRNewswire/ -- Civista Bancshares, Inc. (NASDAQ: CIVB) ("Civista") announced its unaudited financial results for the three months ending March 31, 2022.
First quarter highlights
- Net income of $8.5 million, or $0.57 per diluted share, for the first quarter of 2021, compared to $10.8 million, or $0.68 per diluted share, for the first quarter of 2021.
- COVID–19 loan deferrals decreased to 0.14% of total loans at period end, compared to 0.26% at December 31, 2021 and 21.3% at the June 30, 2020 high point.
- Based on the March 31, 2022 market close share price of $24.10, the $0.14 first quarter dividend is equivalent to an annualized yield of 2.32% and a dividend payout ratio of 24.56%.
- In January we announced the signing of a definitive merger agreement pursuant to which Civista will acquire Comunibanc Corp., the parent company of The Henry County Bank.
"We turned in another solid Civista quarter highlighted by solid loan growth. We continue to work on the integration of the Henry County Bank and did incur some additional expenses related to the acquisition that negatively impacted our noninterest expense. This had an adverse impact to our earnings of approximately $0.03 per share for the quarter. The transaction remains on schedule to close in late second or early third quarter and we look forward to welcoming their employees to the Civista family" said Dennis G. Shaffer, CEO and President of Civista.
Results of Operations:
For the three-month period ended March 31, 2022 and 2021
Net interest income decreased $896 thousand, or 3.8%, for the first quarter of 2022 compared to the same period of 2021, due to a decrease in interest income partially offset by a decrease in interest expense. Accretion of PPP fees was $1.2 million during the first quarter 2022 compared to $3.1 million for the same period in 2021.
Net interest margin increased 8 basis points to 3.38% for the first quarter of 2022, compared to 3.30% for the same period a year ago.
The decrease in interest income was due to a $2.5 million decrease in PPP interest and fees and a decrease of $330 thousand decrease in accretion income related to loan portfolios acquired through acquisitions. Average earning assets decreased $192.1 million, partially offset by an 8 basis point increase in the yield.
Interest expense decreased $163 thousand, or 8.6%, for the first quarter of 2022, compared to the same period last year. The average rate paid on interest-bearing liabilities decreased 7 basis points, while average interest-bearing liabilities increased $109 thousand.
Average Balance Analysis | |||||||
(Unaudited - Dollars in thousands) | |||||||
Three Months Ended March 31, | |||||||
2022 | 2021 | ||||||
Average | Yield/ | Average | Yield/ | ||||
Assets: | balance | Interest | rate * | balance | Interest | rate * | |
Interest-earning assets: | |||||||
Loans ** | $ 2,006,984 | $ 21,038 | 4.25% | $ 2,069,419 | $ 22,783 | 4.47% | |
Taxable securities | 314,493 | 1,720 | 2.20% | 174,740 | 1,275 | 3.08% | |
Non-taxable securities | 260,866 | 1,789 | 3.67% | 207,573 | 1,518 | 4.12% | |
Interest-bearing deposits in other banks | 232,246 | 119 | 0.21% | 554,921 | 149 | 0.11% | |
Total interest-earning assets | $ 2,814,589 | 24,666 | 3.63% | $ 3,006,653 | 25,725 | 3.55% | |
Noninterest-earning assets: | |||||||
Cash and due from financial institutions | 223,353 | 27,760 | |||||
Premises and equipment, net | 22,320 | 22,509 | |||||
Accrued interest receivable | 7,157 | 8,569 | |||||
Intangible assets | 84,374 | 84,862 | |||||
Bank owned life insurance | 46,726 | 46,062 | |||||
Other assets | 37,346 | 38,084 | |||||
Less allowance for loan losses | (26,775) | (25,590) | |||||
Total Assets | $ 3,209,090 | $ 3,208,909 | |||||
Liabilities and Shareholders' Equity: | |||||||
Interest-bearing liabilities: | |||||||
Demand and savings | $ 1,383,372 | $ 234 | 0.07% | $ 1,248,717 | $ 343 | 0.11% | |
Time | 240,612 | 471 | 0.79% | 284,042 | 917 | 1.31% | |
FHLB | 75,000 | 190 | 1.03% | 125,000 | 443 | 1.44% | |
Other borrowings | 358 | - | 0.00% | - | - | 0.00% | |
Subordinated debentures | 103,713 | 836 | 3.27% | 30,349 | 186 | 2.56% | |
Repurchase agreements | 25,228 | 3 | 0.05% | 31,178 | 8 | 0.10% | |
Total interest-bearing liabilities | $ 1,828,283 | 1,734 | 0.38% | $ 1,719,286 | 1,897 | 0.45% | |
Noninterest-bearing deposits | 933,654 | 1,100,023 | |||||
Other liabilities | 99,851 | 39,975 | |||||
Shareholders' equity | 347,302 | 349,625 | |||||
Total Liabilities and Shareholders' Equity | $ 3,209,090 | $ 3,208,909 | |||||
Net interest income and interest rate spread | $ 22,932 | 3.25% | $ 23,828 | 3.10% | |||
Net interest margin | 3.38% | 3.30% | |||||
* - Average yields are presented on a tax equivalent basis. The tax equivalent effect associated with loans and investments, included in the yields above, was $467 thousand and $407 thousand for the periods ended March 31, 2022 and 2021, respectively. | |||||||
** - Average balance includes nonaccrual loans | |||||||
Provision for loan losses was $300 thousand for the first quarter of 2022 compared to $830 thousand for the first quarter of 2021. The reserve ratio increased to 1.34% at March 31, 2022 from 1.33% at December 31, 2021. The reserve ratio without the impact of PPP loans would have only been 1 basis point higher.
For the first quarter of 2022, noninterest income totaled $7.6 million, a decrease of $1.5 million, or 16.8%, compared to the prior year's first quarter.
Noninterest income | |||||||
(unaudited - dollars in thousands) | Three months ended March 31, | ||||||
2022 | 2021 | $ change | % change | ||||
Service charges | $ 1,579 | $ 1,256 | $ 323 | 25.7% | |||
Net loss on sale of securities | - | (1) | 1 | 100.0% | |||
Net gain on equity securities | 50 | 88 | (38) | -43.2% | |||
Net gain on sale of loans | 936 | 2,745 | (1,809) | -65.9% | |||
ATM/Interchange fees | 1,241 | 1,248 | (7) | -0.6% | |||
Wealth management fees | 1,277 | 1,146 | 131 | 11.4% | |||
Bank owned life insurance | 244 | 243 | 1 | 0.4% | |||
Tax refund processing fees | 1,900 | 1,900 | - | 0.0% | |||
Swap fees | - | 76 | (76) | -100.0% | |||
Other | 416 | 489 | (73) | -14.9% | |||
Total noninterest income | $ 7,643 | $ 9,190 | $ (1,547) | -16.8% | |||
Net gain on sale of loans decreased primarily as a result of a decrease in volume of loans sold. Proceeds from the sale of loans sold totaled $38.1 million and $77.6 million during the three months ended March 31, 2022 and 2021, respectively.
Service charges increased as a result of a $223 thousand increase in service charges on deposit accounts and a $100 thousand increase in overdraft fees.
Wealth management fees increased as a result of a $95 thousand increase in brokerage fees and a $33 thousand increase in trust fees. Brokerage income increased due to volume of business and trust income increased as a result of new accounts and market conditions.
Swap fees decreased due to the volume. We did not record a swap during the first quarter this year, compared to $4.2 million during the same period last year. We reduced the loans we entered into swaps on as a part of our asset liability management program. Given current rates, we have chosen to book the variable rate loan that we might otherwise have swapped to a fixed rate.
Other income decreased due to a decrease in gains on the sale of OREO properties of $72 thousand.
For the first quarter of 2022, noninterest expense totaled $20.3 million, an increase of $868 thousand, or 4.5%, compared to the prior year's first quarter.
Noninterest expense | |||||||
(unaudited - dollars in thousands) | Three months ended March 31, | ||||||
2022 | 2021 | $ change | % change | ||||
Compensation expense | $ 12,223 | $ 11,782 | $ 441 | 3.7% | |||
Net occupancy and equipment | 1,645 | 1,638 | 7 | 0.4% | |||
Contracted data processing | 620 | 443 | 177 | 40.0% | |||
Taxes and assessments | 794 | 884 | (90) | -10.2% | |||
Professional services | 1,049 | 738 | 311 | 42.1% | |||
Amortization of intangible assets | 217 | 223 | (6) | -2.7% | |||
ATM/Interchange expense | 513 | 593 | (80) | -13.5% | |||
Marketing | 317 | 299 | 18 | 6.0% | |||
Software maintenance expense | 708 | 508 | 200 | 39.4% | |||
Other | 2,172 | 2,282 | (110) | -4.8% | |||
Total noninterest expense | $ 20,258 | $ 19,390 | $ 868 | 4.5% | |||
Compensation expense increased primarily due to annual pay increases, which occur every year in April and commission and incentive expense. Commission and incentive expense accruals increased $356.6 thousand, or 21.7%.
Contracted data processing fees increased due to merger related system deconversion fees of $215.
The quarter-over-quarter decrease in taxes and assessments was attributable to decreases in both the FDIC assessment and franchise tax. FDIC assessments decreased due to lower assessment multipliers. Franchise tax decreased due to additional taxes paid in 2021 as a result of an amended return.
Professional services primarily increased due to a $118 thousand increase in merger related legal and audit and a $150 thousand increase in consulting fees.
The increase in Software maintenance expense is due to both increases in software maintenance contracts as well as the implementation of the new digital banking platform.
The efficiency ratio was 65.2% for the quarter ended March 31, 2022 compared to 57.4% for the quarter ended March 31, 2021. The change in the efficiency ratio is primarily due to an increase in noninterest expense and a decrease in noninterest interest income.
Civista's effective income tax rate for the first quarter 2022 was 15.5% compared to 17.3% in 2021.
Balance Sheet
Total assets increased $171.5 million, or 5.7%, from December 31, 2021 to March 31, 2022, primarily due to an increase in cash of $148.5 million, or 56.2%. Loans held for sale increased $2.8 million, or 143.1%. The loan portfolio increased $20.3 million, which includes a decrease in PPP loans of $27.7 million.
End of period loan balances | |||||||
(unaudited - dollars in thousands) | |||||||
March 31, | December 31, | ||||||
2022 | 2021 | $ Change | % Change | ||||
Commercial and Agriculture | $ 202,914 | $ 203,293 | $ (379) | -0.2% | |||
Paycheck protection program loans | 15,529 | 43,209 | (27,680) | -64.1% | |||
Commercial Real Estate: | |||||||
Owner Occupied | 301,352 | 295,452 | 5,900 | 2.0% | |||
Non-owner Occupied | 869,663 | 829,310 | 40,353 | 4.9% | |||
Residential Real Estate | 432,770 | 430,060 | 2,710 | 0.6% | |||
Real Estate Construction | 161,651 | 157,127 | 4,524 | 2.9% | |||
Farm Real Estate | 24,648 | 28,419 | (3,771) | -13.3% | |||
Consumer and Other | 9,661 | 11,009 | (1,348) | -12.2% | |||
Total Loans | $ 2,018,188 | $ 1,997,879 | $ 20,309 | 1.0% |
Loan balances increased $20.3 million, or 1.0% in the first quarter, including the PPP balance decline. Removing the effect of the PPP loans, the loan portfolio increased $48.0 million or 2.5%. Commercial and Agriculture loans are flat as revolving line of credit balances continue to be undrawn. Commercial Real Estate continued to grow due to consistent demand in both the Non-owner Occupied and Owner Occupied categories. Real Estate Construction grew slightly as new projects were originated awaiting the construction season. Construction demand remains strong and construction availability continues to be near all-time highs. Residential Real Estate is relatively flat as most new originations are sold on the secondary market with any portfolio loans basically equaling payment attrition.
Paycheck Protection Program
In total, we processed over 3,600 loans totaling $399.4 million of PPP loans. Of the total PPP loans we have originated, $383.9 million have been forgiven or have paid off. We recognized $1.2 million of PPP fees in income during the quarter, and at March 31, 2022, $583 thousand of unearned PPP fees remain.
COVID-19 Loan Modifications
As of March 31, 2022, the remaining loans modified under the CARES Act totaled $2.8 million, or 0.14% of total loans at period end, compared to 0.26% at December 31, 2021. Details with respect to the loan modifications that remain on deferred status are as follows:
Loans currently modified under COVID-19 programs | ||||||
(unaudited - dollars in thousands) | ||||||
Type of Loan | Number of | Balance | Percent of | |||
Commercial and Agriculture | 1 | $ 245 | 0.01% | |||
Commercial Real Estate: | ||||||
Non-owner Occupied | 4 | 2,519 | 0.12% | |||
5 | $ 2,764 | 0.14% | ||||
Deposits
Total deposits increased $198.4 million, or 8.2%, from December 31, 2021 to March 31, 2022.
End of period deposit balances | |||||||
(unaudited - dollars in thousands) | |||||||
March 31, | December 31, | ||||||
2022 | 2021 | $ Change | % Change | ||||
Noninterest-bearing demand | $ 987,347 | $ 788,906 | $ 198,441 | 25.2% | |||
Interest-bearing demand | 540,924 | 537,510 | 3,414 | 0.6% | |||
Savings and money market | 851,803 | 843,837 | 7,966 | 0.9% | |||
Time deposits | 235,063 | 246,448 | (11,385) | -4.6% | |||
Total Deposits | $ 2,615,137 | $ 2,416,701 | $ 198,436 | 8.2% |
The increase in noninterest-bearing demand of $198.4 million was primarily due to a $199.4 million increase in balances related to the tax refund processing program, which is a seasonal increase. Interest-bearing demand deposits increased due to a $20.4 million increase in public fund accounts, partially offset by a $15.5 million decrease in non-public fund accounts. The increase in savings and money market was primarily due to a $21.0 million increase in statement savings, a $7.5 million increase in personal money markets, and a $3.9 million increase in public fund money markets. These increases were partially offset by decreases of $19.0 million increase in brokered money market accounts and $6.1 million in business money market accounts. The decrease in time certificates was primarily due to certificates over $100 thousand.
FHLB advances totaled $75.0 million at March 31, 2022, unchanged from December 31, 2021.
Stock Repurchase Program
During 2022, Civista repurchased 183,357 shares for $4.4 million at a weighted average price of $24.17 per share. We have approximately $4.9 million remaining of the current $13.5 million repurchase authorization, which was approved in August 2021. In addition, Civista liquidated 5,403 shares held by employees, at $24.66 per share, to satisfy tax obligations stemming from vesting of restricted shares.
Shareholders' Equity
Total shareholders' equity decreased $27.5 million from December 31, 2021 to March 31, 2022, primarily due to a $29.6 million decrease in accumulated other comprehensive income (loss). Shareholders' equity also decreased due to a $4.6 million repurchase of treasury shares. Retained earnings increased $6.4 million.
Asset Quality
Civista recorded net recoveries of $92 thousand for the three months of 2022 compared to net recoveries of $275 thousand for the same period of 2021. The allowance for loan losses to loans was 1.34% at March 31, 2022 and 1.33% at December 31, 2021.
Allowance for Loan Losses | |||
(dollars in thousands) | |||
March 31, | March 31, | ||
2022 | 2021 | ||
Beginning of period | $ 26,641 | $ 25,028 | |
Charge-offs | (30) | (46) | |
Recoveries | 122 | 321 | |
Provision | 300 | 830 | |
End of period | $ 27,033 | $ 26,133 |
Non-performing assets at March 31, 2022 were $5.4 million, unchanged from December 31, 2021. The non-performing assets to assets ratio decreased to 0.17% from 0.18% at December 31, 2021. The allowance for loan losses to non-performing loans increased to 501.50% from 496.10% at December 31, 2021.
Non-performing Assets | |||
(dollars in thousands) | March 31, | December 31, | |
2022 | 2021 | ||
Non-accrual loans | $ 3,915 | $ 3,873 | |
Restructured loans | 1,475 | 1,497 | |
Total non-performing loans | 5,390 | 5,370 | |
Other Real Estate Owned | - | - | |
Total non-performing assets | $ 5,390 | $ 5,370 |
Conference Call and Webcast
Civista Bancshares, Inc. will also host a conference call to discuss the Company's financial results for the first quarter of 2022 at 1:00 p.m. ET on Thursday, April 28, 2022. 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 855-238-2712 and ask to be joined into the Civista Bancshares, Inc. first quarter 2022 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).
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, 2021, 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.
Civista Bancshares, Inc. is a $3.2 billion financial holding company headquartered in Sandusky, Ohio. The Company's banking subsidiary, Civista Bank, operates 35 locations in Northern, Central and Southwestern Ohio, Southeastern Indiana and Northern Kentucky. Civista Bancshares, Inc. may be accessed at HUwww.civb.comUH. The Company's common shares are traded on the NASDAQ Capital Market under the symbol "CIVB".
Civista Bancshares, Inc. Financial Highlights (Unaudited, dollars in thousands, except share and per share amounts)
| ||||
Consolidated Condensed Statement of Income | ||||
Three Months Ended | ||||
March 31, | ||||
2022 | 2021 | |||
Interest income | $ 24,666 | $ 25,725 | ||
Interest expense | 1,734 | 1,897 | ||
Net interest income | 22,932 | 23,828 | ||
Provision for loan losses | 300 | 830 | ||
Net interest income after provision | 22,632 | 22,998 | ||
Noninterest income | 7,643 | 9,190 | ||
Noninterest expense | 20,258 | 19,187 | ||
Income before taxes | 10,017 | 13,001 | ||
Income tax expense | 1,551 | 2,243 | ||
Net income | $ 8,466 | $ 10,758 | ||
Dividends paid per common share | $ 0.14 | $ 0.12 | ||
Earnings per common share, | ||||
basic and diluted | $ 0.57 | $ 0.68 | ||
Average shares outstanding, | ||||
basic and diluted | 14,853,287 | 15,820,301 | ||
Selected financial ratios: | ||||
Return on average assets (annualized) | 1.07% | 1.36% | ||
Return on average equity (annualized) | 9.89% | 12.48% | ||
Dividend payout ratio | 24.56% | 17.65% | ||
Net interest margin (tax equivalent) | 3.38% | 3.30% | ||
Selected Balance Sheet Items | |||
(Dollars in thousands, except share and per share amounts) | |||
March 31, | December 31, | ||
2022 | 2021 | ||
(unaudited) | (unaudited) | ||
Cash and due from financial institutions | $ 412,698 | $ 264,239 | |
Investment in time deposits | 1,728 | 1,730 | |
Investment securities | 553,499 | 560,946 | |
Loans held for sale | 4,794 | 1,972 | |
Loans | 2,018,188 | 1,997,879 | |
Less: allowance for loan losses | (27,033) | (26,641) | |
Net loans | 1,991,155 | 1,971,238 | |
Other securities | 18,511 | 17,011 | |
Premises and equipment, net | 22,110 | 22,445 | |
Goodwill and other intangibles | 84,251 | 84,432 | |
Bank owned life insurance | 46,885 | 46,641 | |
Other assets | 48,726 | 42,251 | |
Total assets | $ 3,184,357 | $ 3,012,905 | |
Total deposits | $ 2,615,137 | $ 2,416,701 | |
Federal Home Loan Bank advances | 75,000 | 75,000 | |
Securities sold under agreements to repurchase | 23,931 | 25,495 | |
Subordinated debentures | 103,704 | 103,735 | |
Accrued expenses and other liabilities | 38,893 | 36,762 | |
Total shareholders' equity | 327,692 | 355,212 | |
Total liabilities and shareholders' equity | $ 3,184,357 | $ 3,012,905 | |
Shares outstanding at period end | 14,797,214 | 14,954,200 | |
Book value per share | $ 22.15 | $ 23.75 | |
Equity to asset ratio | 10.29% | 11.79% | |
Selected asset quality ratios: | |||
Allowance for loan losses to total loans | 1.34% | 1.33% | |
Non-performing assets to total assets | 0.17% | 0.18% | |
Allowance for loan losses to non-performing loans | 501.50% | 496.10% | |
Non-performing asset analysis | |||
Nonaccrual loans | $ 3,915 | $ 3,873 | |
Troubled debt restructurings | 1,475 | 1,497 | |
Other real estate owned | - | - | |
Total | $ 5,390 | $ 5,370 | |
Supplemental Financial Information | |||||||||
(Unaudited - dollars in thousands except share data) | |||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||
End of Period Balances | 2022 | 2021 | 2021 | 2021 | 2021 | ||||
Assets | |||||||||
Cash and due from banks | $ 412,698 | $ 264,239 | $ 250,943 | $ 243,083 | $ 434,767 | ||||
Investment in time deposits | 1,728 | 1,730 | 2,222 | 2,223 | 2,471 | ||||
Investment securities | 553,499 | 560,946 | 499,226 | 458,831 | 357,798 | ||||
Loans held for sale | 4,794 | 1,972 | 5,810 | 6,618 | 10,769 | ||||
Loans | 2,018,188 | 1,997,879 | 2,004,814 | 2,019,196 | 2,060,239 | ||||
Allowance for loan losses | (27,033) | (26,641) | (26,568) | (26,197) | (26,133) | ||||
Net Loans | 1,991,155 | 1,971,238 | 1,978,246 | 1,992,999 | 2,034,106 | ||||
Other securities | 18,511 | 17,011 | 17,011 | 20,537 | 20,537 | ||||
Premises and equipment, net | 22,110 | 22,445 | 22,716 | 22,817 | 22,265 | ||||
Goodwill and other intangibles | 84,251 | 84,432 | 84,589 | 84,980 | 84,682 | ||||
Bank owned life insurance | 46,885 | 46,641 | 46,728 | 46,467 | 46,219 | ||||
Other assets | 48,726 | 42,251 | 45,667 | 47,010 | 44,676 | ||||
Total Assets | $ 3,184,357 | $ 3,012,905 | $ 2,953,158 | $ 2,925,565 | $ 3,058,290 | ||||
Liabilities | |||||||||
Total deposits | $ 2,615,137 | $ 2,416,701 | $ 2,434,766 | $ 2,402,992 | $ 2,475,907 | ||||
Federal Home Loan Bank advances | 75,000 | 75,000 | 75,000 | 75,000 | 125,000 | ||||
Securities sold under agreement to repurchase | 23,931 | 25,495 | 23,331 | 24,916 | 29,513 | ||||
Subordinated debentures | 103,704 | 103,735 | 30,349 | 30,349 | 30,349 | ||||
Accrued expenses and other liabilities | 38,893 | 36,762 | 41,262 | 39,895 | 47,463 | ||||
Total liabilities | 2,856,665 | 2,657,693 | 2,604,708 | 2,573,152 | 2,708,232 | ||||
Shareholders' Equity | |||||||||
Common shares | 277,919 | 277,741 | 277,627 | 277,495 | 277,164 | ||||
Retained earnings | 131,934 | 125,558 | 116,680 | 109,178 | 101,899 | ||||
Treasury shares | (61,472) | (56,907) | (55,155) | (45,953) | (38,574) | ||||
Accumulated other comprehensive income (loss) | (20,689) | 8,820 | 9,298 | 11,693 | 9,569 | ||||
Total shareholders' equity | 327,692 | 355,212 | 348,450 | 352,413 | 350,058 | ||||
Total Liabilities and Shareholders' Equity | $ 3,184,357 | $ 3,012,905 | $ 2,953,158 | $ 2,925,565 | $ 3,058,290 | ||||
Quarterly Average Balances | |||||||||
Assets: | |||||||||
Earning assets | $ 2,814,589 | $ 2,773,498 | $ 2,747,450 | $ 2,776,131 | $ 3,006,653 | ||||
Securities | 575,359 | 522,058 | 482,642 | 413,494 | 382,313 | ||||
Loans | 2,006,984 | 1,973,989 | 2,010,665 | 2,054,784 | 2,069,419 | ||||
Liabilities and Shareholders' Equity | |||||||||
Total deposits | $ 2,557,638 | $ 2,430,613 | $ 2,437,580 | $ 2,448,183 | $ 2,632,782 | ||||
Interest-bearing deposits | 1,623,984 | 1,619,560 | 1,588,079 | 1,580,622 | 1,532,759 | ||||
Other interest-bearing liabilities | 204,299 | 155,094 | 127,511 | 157,264 | 185,605 | ||||
Total shareholders' equity | 347,302 | 348,971 | 348,970 | 349,256 | 349,625 | ||||
Supplemental Financial Information | |||||||||
(Unaudited - dollars in thousands except share data) | |||||||||
Three Months Ended | |||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||
Income statement | 2022 | 2021 | 2021 | 2021 | 2021 | ||||
Total interest and dividend income | $ 24,666 | $ 24,735 | $ 25,784 | $ 25,498 | $ 25,725 | ||||
Total interest expense | 1,734 | 1,412 | 1,351 | 1,657 | 1,897 | ||||
Net interest income | 22,932 | 23,323 | 24,433 | 23,841 | 23,828 | ||||
Provision for loan losses | 300 | - | - | - | 830 | ||||
Noninterest income | 7,643 | 6,811 | 6,426 | 9,025 | 9,190 | ||||
Noninterest expense | 20,258 | 16,963 | 19,251 | 22,265 | 19,187 | ||||
Income before taxes | 10,017 | 13,171 | 11,608 | 10,601 | 13,001 | ||||
Income tax expense | 1,551 | 2,189 | 1,966 | 1,437 | 2,243 | ||||
Net income | $ 8,466 | $ 10,982 | $ 9,642 | $ 9,164 | $ 10,758 | ||||
Per share data | |||||||||
Earnings per common share | |||||||||
Basic | |||||||||
Net income | $ 8,466 | $ 10,982 | $ 9,642 | $ 9,164 | $ 10,758 | ||||
Less allocation of earnings and | |||||||||
dividends to participating securities | 32 | 51 | 46 | 43 | 32 | ||||
Net income available to common | |||||||||
shareholders - basic | $ 8,434 | $ 10,931 | $ 9,596 | $ 9,121 | $ 10,726 | ||||
Weighted average common shares outstanding | 14,909,192 | 15,009,376 | 15,168,233 | 15,602,329 | 15,867,588 | ||||
Less average participating securities | 55,905 | 70,349 | 72,071 | 72,563 | 47,286 | ||||
Weighted average number of shares outstanding | |||||||||
used to calculate basic earnings per share | 14,853,287 | 14,939,027 | 15,096,162 | 15,529,766 | 15,820,302 | ||||
Earnings per common share (1) | |||||||||
Basic | $ 0.57 | $ 0.73 | $ 0.64 | $ 0.59 | $ 0.68 | ||||
Diluted | 0.57 | 0.73 | 0.64 | 0.59 | 0.68 | ||||
Common shares dividend paid | $ 2,091 | $ 2,104 | $ 2,140 | $ 1,885 | $ 1,907 | ||||
Dividends paid per common share | 0.14 | 0.14 | 0.14 | 0.12 | 0.12 | ||||
(1) The Company is now presenting earnings per share using the two-class method. As such, the presentation for the prior periods have been revised. Earnings per share for the prior periods did not change as a result of using the two-class method. | |||||||||
Supplemental Financial Information | |||||||||
(Unaudited - dollars in thousands except share data) | |||||||||
Three Months Ended | |||||||||
March | December 31, | September 30, | June 30, | March 31, | |||||
Asset quality | 2022 | 2021 | 2021 | 2021 | 2021 | ||||
Allowance for loan losses, beginning of period | $ 26,641 | $ 26,568 | $ 26,197 | $ 26,133 | $ 25,028 | ||||
Charge-offs | (30) | (11) | (77) | (25) | (46) | ||||
Recoveries | 122 | 84 | 448 | 89 | 321 | ||||
Provision | 300 | - | - | - | 830 | ||||
Allowance for loan losses, end of period | $ 27,033 | $ 26,641 | $ 26,568 | $ 26,197 | $ 26,133 | ||||
Ratios | |||||||||
Allowance to total loans | 1.34% | 1.33% | 1.33% | 1.30% | 1.27% | ||||
Allowance to nonperforming assets | 501.50% | 496.10% | 501.01% | 443.50% | 423.09% | ||||
Allowance to nonperforming loans | 501.50% | 496.10% | 503.50% | 443.50% | 423.09% | ||||
Nonperforming assets | |||||||||
Nonperforming loans | $ 5,390 | $ 5,370 | $ 5,277 | $ 5,907 | $ 6,177 | ||||
Other real estate owned | - | - | 26 | - | - | ||||
Total nonperforming assets | $ 5,390 | $ 5,370 | $ 5,303 | $ 5,907 | $ 6,177 | ||||
Capital and liquidity | |||||||||
Tier 1 leverage ratio | 9.50% | 10.21% | 10.01% | 9.92% | 9.23% | ||||
Tier 1 risk-based capital ratio | 14.02% | 12.92% | 14.18% | 14.65% | 15.20% | ||||
Total risk-based capital ratio | 18.74% | 14.35% | 15.43% | 15.90% | 16.45% | ||||
Tangible common equity ratio (1) | 7.85% | 9.25% | 9.20% | 9.42% | 8.93% | ||||
(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) | |||||||||
Three Months Ended | |||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||
2022 | 2021 | 2021 | 2021 | 2021 | |||||
Tangible Common Equity | |||||||||
Total Shareholder's Equity - GAAP | $ 327,692 | $ 355,212 | $ 348,450 | $ 352,413 | $ 350,058 | ||||
Less: Goodwill and intangible assets | 84,251 | 84,432 | 84,589 | 84,980 | 84,682 | ||||
Tangible common equity (Non-GAAP) | $ 243,441 | $ 270,780 | $ 263,861 | $ 267,433 | $ 265,376 | ||||
Total Shares Outstanding | 14,797,214 | 14,954,200 | 15,029,972 | 15,434,592 | 15,750,479 | ||||
Tangible book value per share | $ 16.45 | $ 18.11 | $ 17.56 | $ 17.33 | $ 16.85 | ||||
Tangible Assets | |||||||||
Total Assets - GAAP | $ 3,184,357 | $ 3,011,983 | $ 2,952,236 | $ 2,924,643 | $ 3,057,368 | ||||
Less: Goodwill and intangible assets | 84,251 | 84,432 | 84,589 | 84,980 | 84,682 | ||||
Tangible assets (Non-GAAP) | $ 3,100,106 | $ 2,927,551 | $ 2,867,647 | $ 2,839,663 | $ 2,972,686 | ||||
Tangible common equity to tangible assets | 7.85% | 9.25% | 9.20% | 9.42% | 8.93% | ||||
SOURCE Civista Bancshares, Inc.
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