Civista Bancshares, Inc. Announces First Quarter 2023 Financial Results
SANDUSKY, Ohio, April 28, 2023 /PRNewswire/ -- Civista Bancshares, Inc. (NASDAQ:CIVB) ("Civista") announced its unaudited financial results for the three months ending March 31, 2023.
First quarter highlights
- Net income of $12.9 million, or $0.82 per diluted share, for the first quarter of 2023, compared to $8.5 million, or $0.57 per diluted share, for the first quarter of 2022.
- Low cost of deposits of 49 basis points and total funding costs of 114 basis points for the quarter.
- Based on the March 31, 2023 market close share price of $16.88, the $0.14 first quarter dividend is equivalent to an annualized yield of 3.32% and a dividend payout ratio of 17.07%.
- On January 1, 2023, Civista adopted ASC 326 ("CECL") which resulted in an adjustment to the reserve of approximately $4.3 million and an additional $3.4 million reserve for unfunded commitments.
"With all the turmoil in the industry, strong core deposit franchises like Civista, matter again. Our deposit base is well diversified, with no concentrations and approximately 83 percent of our deposits are insured. It's these core deposits that drive our better than peer net interest margin and strong profitability. Our net interest margin for the quarter was 4.11% and our ROAA was 1.47%," said Dennis G. Shaffer, CEO and President of Civista.
Results of Operations:
For the three-month period ended March 31, 2023 and 2022
Net interest income increased $9.7 million, or 42.2%, for the first quarter of 2023 compared to the same period of 2022, due to an increase in interest income partially offset by an increase in interest expense. Noninterest income also increased due primarily to the addition of lease revenue and residual income related to the acquisition of VFG.
Net interest margin increased 73 basis points to 4.11% for the first quarter of 2023, compared to 3.38% for the same period a year ago.
Interest income increased by $16.9 million, or 68.4%, for the first quarter of 2023, compared to the same period last year. The increase in interest income was driven by an increase of $397.3 million in average earning assets and to a 159-basis point increase in yield on average earning assets. The increase in average earning assets and the increase in yield contributed to the increase in interest income by $7.4 million and $9.5 million, respectively.
Interest expense increased $7.2 million, or 415.5%, for the first quarter of 2023, compared to the same period last year. The average rate paid on interest-bearing liabilities increased 126 basis points, while average interest-bearing liabilities increased $379.3 million. Interest expense increased $4.4 million due to the increase in average liabilities and increased $2.8 million due to the increase in cost of liabilities.
Average Balance Analysis | |||||||
(Unaudited - Dollars in thousands) | |||||||
Three Months Ended March 31, | |||||||
2023 | 2022 | ||||||
Average | Yield/ | Average | Yield/ | ||||
Assets: | balance | Interest | rate * | balance | Interest | rate * | |
Interest-earning assets: | |||||||
Loans ** | $ 2,548,518 | $ 36,398 | 5.79 % | $ 2,006,984 | $ 21,038 | 4.25 % | |
Taxable securities | 374,851 | 2,834 | 2.77 % | 314,493 | 1,720 | 2.20 % | |
Non-taxable securities | 281,136 | 2,262 | 3.81 % | 260,866 | 1,789 | 3.67 % | |
Interest-bearing deposits in other banks | 7,397 | 45 | 2.47 % | 232,246 | 119 | 0.21 % | |
Total interest-earning assets | $ 3,211,902 | 41,539 | 5.22 % | $ 2,814,589 | 24,666 | 3.63 % | |
Noninterest-earning assets: | |||||||
Cash and due from financial institutions | 54,136 | 223,353 | |||||
Premises and equipment, net | 62,776 | 22,320 | |||||
Accrued interest receivable | 10,655 | 7,157 | |||||
Intangible assets | 135,554 | 84,374 | |||||
Bank owned life insurance | 53,630 | 46,726 | |||||
Other assets | 61,292 | 37,346 | |||||
Less allowance for loan losses | (30,454) | (26,775) | |||||
Total Assets | $ 3,559,491 | $ 3,209,090 | |||||
Liabilities and Shareholders' Equity: | |||||||
Interest-bearing liabilities: | |||||||
Demand and savings | $ 1,384,070 | $ 1,084 | 0.32 % | $ 1,383,372 | $ 234 | 0.07 % | |
Time | 308,400 | 2,148 | 2.82 % | 240,612 | 471 | 0.79 % | |
Short-term FHLB advances | 372,226 | 4,258 | 4.64 % | - | - | 0.00 % | |
Long-term FHLB advances | 3,442 | 19 | 2.24 % | 75,000 | 190 | 1.03 % | |
Other borrowings | 14,817 | 257 | 7.04 % | 358 | - | 0.00 % | |
Subordinated debentures | 103,814 | 1,169 | 4.57 % | 103,713 | 836 | 3.27 % | |
Repurchase agreements | 20,823 | 3 | 0.06 % | 25,228 | 3 | 0.05 % | |
Total interest-bearing liabilities | $ 2,207,592 | 8,938 | 1.64 % | $ 1,828,283 | 1,734 | 0.38 % | |
Noninterest-bearing deposits | 961,886 | 933,654 | |||||
Other liabilities | 48,854 | 99,851 | |||||
Shareholders' equity | 341,159 | 347,302 | |||||
Total Liabilities and Shareholders' Equity | $ 3,559,491 | $ 3,209,090 | |||||
Net interest income and interest rate spread | $ 32,601 | 3.58 % | $ 22,932 | 3.25 % | |||
Net interest margin | 4.11 % | 3.38 % | |||||
* Average yields are presented on a tax equivalent basis. The tax equivalent effect associated with loans and investments, included in the yields above, was $601 thousand and $467 thousand for the periods ended March 31, 2023 and 2022, 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 $63.2 million in 2023 and by unrealized gains of $7.6 million in 2022. These adjustments were also made when calculating the yield on earning assets and the margin. | |||||||
On January 1, 2023, Civista adopted CECL, which resulted in an adjustment to the reserve of approximately $4.3 million and an additional $3.4 million reserve for unfunded commitments. Provision for credit losses for the first quarter of 2023 was $620 thousand compared to $300 thousand for the first quarter of 2022. The reserve ratio increased to 1.33% as of March 31, 2023 from 1.12% at December 31, 2022. Provision for unfunded commitments for the first quarter of 2023 was $201 thousand. There was no provision for unfunded commitments in the first quarter of 2022..
For the first quarter of 2023, noninterest income totaled $11.1 million, a decrease of $3.4 million, or 44.8%, compared to the prior year's first quarter.
Noninterest income | |||||||
(unaudited - dollars in thousands) | Three months ended March 31, | ||||||
2023 | 2022 | $ change | % change | ||||
Service charges | $ 1,773 | $ 1,579 | $ 194 | 12.3 % | |||
Net loss on sale of securities | - | - | - | 0.0 % | |||
Net gain (loss) on equity securities | (68) | 50 | (118) | -236.0 % | |||
Net gain on sale of loans | 631 | 936 | (305) | -32.6 % | |||
ATM/Interchange fees | 1,353 | 1,241 | 112 | 9.0 % | |||
Wealth management fees | 1,193 | 1,277 | (84) | -6.6 % | |||
Bank owned life insurance | 253 | 244 | 9 | 3.7 % | |||
Lease revenue and residual income | 2,046 | - | 2,046 | 0.0 % | |||
Tax refund processing fees | 1,900 | 1,900 | - | 0.0 % | |||
Swap fees | 61 | - | 61 | 0.0 % | |||
Other | 1,926 | 416 | 1,510 | 363.0 % | |||
Total noninterest income | $ 11,068 | $ 7,643 | $ 3,425 | 44.8 % | |||
Service charges increased due to a $105 thousand increase in service charges on deposit accounts and a $89 thousand increase in overdraft fees.
Net gain on sale of loans decreased primarily due to a decrease in volume of loans sold. During the three-months ended March 31, 2023, 63 loans were sold, totaling $9.2 million. During the three-months ended March 31, 2022, 208 loans were sold, totaling $38.2 million.
Lease revenue and residual income increased $2.0 million due to the acquisition of VFG.
Other income increased as result of a $1.5 million fee collected associated with the renewal of the company's contract with MasterCard.
For the first quarter of 2023, noninterest expense totaled $27.6 million, an increase of $7.4 million, or 36.4%, compared to the prior year's first quarter.
Noninterest expense | |||||||
(unaudited - dollars in thousands) | Three months ended March 31, | ||||||
2023 | 2022 | $ change | % change | ||||
Compensation expense | $ 15,105 | $ 12,223 | $ 2,882 | 23.6 % | |||
Net occupancy and equipment | 4,120 | 1,645 | 2,475 | 150.5 % | |||
Contracted data processing | 520 | 620 | (100) | -16.1 % | |||
Taxes and assessments | 774 | 794 | (20) | -2.5 % | |||
Professional services | 1,555 | 1,049 | 506 | 48.2 % | |||
Amortization of intangible assets | 398 | 217 | 181 | 83.4 % | |||
ATM/Interchange expense | 580 | 513 | 67 | 13.1 % | |||
Marketing | 505 | 317 | 188 | 59.3 % | |||
Software maintenance expense | 878 | 708 | 170 | 24.0 % | |||
Other | 3,198 | 2,172 | 1,026 | 47.2 % | |||
Total noninterest expense | $ 27,633 | $ 20,258 | $ 7,375 | 36.4 % | |||
Compensation expense increased primarily due to the acquisition of Comunibanc Corp and VFG. The quarter-to-date average full time equivalent (FTE) employees were 532.4 at March 31, 2023, an increase of 88.9 FTEs over the same period in 2022.
The increase in occupancy and equipment expense is due to increases related to the acquisition of Comunibanc Corp and the opening of a new branch in Ohio. Additionally, Equipment expense increased $2.0 million due to increases in equipment depreciation related to the acquisition of VFG.
Contracted data processing fees decreased due to merger-related system deconversion fees paid in the first quarter of 2022.
Professional services increased due to acquisition advisory costs of $115 thousand, advisory fees for the company's MasterCard contract of $400 thousand and consulting fees related to CECL implementation of $29 thousand.
The increase in amortization of intangible assets is related to the merger with Comunibanc Corp.
Marketing expense increased due to a general increase in marketing and increase marketing efforts in newly acquired markets.
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 increase in other operating expense is primarily due to increases in promotional expenses of $274 thousand, bad check losses of $115 thousand, ATM/ACH losses of $217 thousand and a provision for credit losses on unfunded commitments of $201 thousand.
The efficiency ratio was 62.4% for the quarter ended March 31, 2023 compared to 65.2% for the quarter ended March 31, 2022. The change in the efficiency ratio is primarily due to an increase in noninterest expense offset by an increase in net interest income.
Civista's effective income tax rate for the first quarter 2023 was 16.4% compared to 15.5% in 2022.
Balance Sheet
Total assets increased $49.3 million, or 1.4%, from December 31, 2022 to March 31, 2023, primarily due to an increase in the loan portfolio of $33.4 million, or 1.3%. Additionally, the securities portfolio increased by $14.0 million, and cash increased $ 9.4 million.
End of period loan balances | |||||||
(unaudited - dollars in thousands) | |||||||
March 31, | December 31, | ||||||
2023 | 2022 | $ Change | % Change | ||||
Commercial and Agriculture | $ 271,160 | $ 278,595 | $ (7,435) | -2.7 % | |||
Commercial Real Estate: | |||||||
Owner Occupied | 375,825 | 371,147 | 4,678 | 1.3 % | |||
Non-owner Occupied | 1,043,635 | 1,018,736 | 24,899 | 2.4 % | |||
Residential Real Estate | 560,978 | 552,781 | 8,197 | 1.5 % | |||
Real Estate Construction | 247,253 | 243,127 | 4,126 | 1.7 % | |||
Farm Real Estate | 24,040 | 24,708 | (668) | -2.7 % | |||
Lease financing receivable | 37,570 | 36,797 | 773 | 2.1 % | |||
Consumer and Other | 19,605 | 20,775 | (1,170) | -5.6 % | |||
Total Loans | $ 2,580,066 | $ 2,546,666 | $ 33,400 | 1.3 % |
Loan balances increased $33.4 million, or 1.3% in the first quarter. Commercial revolving line of credit balances have consistently been less than forty percent advanced. 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 have started to draw with the spring construction season. Construction demand remains strong and construction availability continues to be near all-time highs. Residential Real Estate has grown slightly with new production in our CRA product, more home construction loans, and more ARM products in this higher rate environment.
Deposits
Total deposits increased $223.5 million, or 8.5%, from December 31, 2022 to March 31, 2023.
End of period deposit balances | |||||||
(unaudited - dollars in thousands) | |||||||
March 31, | December 31, | ||||||
2023 | 2022 | $ Change | % Change | ||||
Noninterest-bearing demand | $ 938,967 | $ 896,333 | $ 42,634 | 4.8 % | |||
Interest-bearing demand | 541,027 | 527,879 | 13,148 | 2.5 % | |||
Savings and money market | 836,743 | 876,427 | (39,684) | -4.5 % | |||
Time deposits | 526,779 | 319,345 | 207,434 | 65.0 % | |||
Total Deposits | $ 2,843,516 | $ 2,619,984 | $ 223,532 | 8.5 % |
The increase in noninterest-bearing demand of $42.6 million was primarily due to a $82.0 million increase in balances related to the tax refund processing program, which is a seasonal increase. This seasonal increase was partially offset by a $37.7 million decrease in noninterest-bearing business accounts. Interest-bearing demand deposits increased due to a $15.8 million increase in public fund accounts. The decrease in savings and money market was primarily due to a $19.1 million decrease in personal money markets, a $14.5 million decrease in statement savings, and a $5.2 million decrease in business savings accounts. The increase in time certificates was primarily due to a $201.2 million increase in brokered time deposits.
FHLB overnight advances totaled $212.0 million on March 31, 2023, down from $393.7 million on December 31, 2022. FHLB term advances totaled $3.4 million on March 31, 2023, down from $3.6 million on December 31, 2022.
Stock Repurchase Program
So far in 2023, Civista has not repurchased any shares. We have approximately $6.1 million remaining of the current $13.5 million repurchase authorization, which will expire in May 2023. The Board has approved a replacement plan that will not take effect until May 2023. In January, Civista liquidated 5,620 shares held by employees, at $21.52 per share, to satisfy tax obligations stemming from vesting of restricted shares.
Shareholders' Equity
Total shareholders' equity increased $12.9 million from December 31, 2022 to March 31, 2023, primarily due to an $8.1 million decrease in accumulated other comprehensive loss. Retained earnings increased $4.6 million.
Asset Quality
Civista recorded net charge-offs of $128 thousand for the three months of 2023 compared to net recoveries of $92 thousand for the same period of 2022. The allowance for credit losses to loans was 1.33% at March 31, 2023 and 1.12% at December 31, 2022.
Allowance for Credit Losses | |||
(dollars in thousands) | |||
March 31, | March 31, | ||
2023 | 2022 | ||
Beginning of period | $ 28,511 | $ 26,641 | |
CECL adoption adjustments | 5,193 | - | |
Charge-offs | (175) | (30) | |
Recoveries | 47 | 122 | |
Provision | 620 | 300 | |
End of period | $ 34,196 | $ 27,033 |
Allowance for Unfunded Commitments | |||
(dollars in thousands) | |||
March 31, | March 31, | ||
2023 | 2022 | ||
Beginning of period | $ - | $ - | |
CECL adoption adjustments | 3,386 | ||
Charge-offs | - | - | |
Recoveries | - | - | |
Provision | 201 | - | |
End of period | $ 3,587 | $ - | |
Non-performing assets at March 31, 2023 were $9.9 million, a 9.3% decrease from December 31, 2022. The non-performing assets to assets ratio decreased to 0.30% from 0.31% at December 31, 2022. The allowance for loan losses to non-performing loans increased to 313.58% from 261.45% at December 31, 2022.
Non-performing Assets | |||
(dollars in thousands) | March 31, | December 31, | |
2023 | 2022 | ||
Non-accrual loans | $ 6,980 | $ 7,890 | |
Restructured loans | 2,880 | 3,015 | |
Total non-performing loans | 9,860 | 10,905 | |
Other Real Estate Owned | 26 | - | |
Total non-performing assets | $ 9,886 | $ 10,905 |
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 2023 at 1:00 p.m. ET on Thursday, April 28, 2023. 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 join the Civista Bancshares, Inc. first quarter 2023 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, 2022, 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 $3.6 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 43 locations across Ohio, Southeastern Indiana and Northern Kentucky. Civista Bank also offers commercial equipment leasing services for businesses nationwide through its subsidiary, Vision Financial Group, Inc., centered in Pittsburgh, Pennsylvania. Civista Bancshares' common shares are traded on the NASDAQ Capital Market under the symbol "CIVB". Learn more at www.civb.com.
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, | ||||
2023 | 2022 | |||
Interest income | $ 41,539 | $ 24,666 | ||
Interest expense | 8,938 | 1,734 | ||
Net interest income | 32,601 | 22,932 | ||
Provision for credit losses | 620 | 300 | ||
Net interest income after provision | 31,981 | 22,632 | ||
Noninterest income | 11,068 | 7,643 | ||
Noninterest expense | 27,633 | 20,258 | ||
Income before taxes | 15,416 | 10,017 | ||
Income tax expense | 2,528 | 1,551 | ||
Net income | $ 12,888 | $ 8,466 | ||
Dividends paid per common share | $ 0.14 | $ 0.14 | ||
Earnings per common share, | ||||
basic and diluted | $ 0.82 | $ 0.57 | ||
Average shares outstanding, | ||||
basic and diluted | 15,732,092 | 14,853,287 | ||
Selected financial ratios: | ||||
Return on average assets (annualized) | 1.47 % | 1.07 % | ||
Return on average equity (annualized) | 15.32 % | 9.89 % | ||
Dividend payout ratio | 17.07 % | 24.56 % | ||
Net interest margin (tax equivalent) | 4.11 % | 3.38 % | ||
Selected Balance Sheet Items | |||
(Dollars in thousands, except share and per share amounts) | |||
March 31, | December 31, | ||
2023 | 2022 | ||
(unaudited) | (unaudited) | ||
Cash and due from financial institutions | $ 52,723 | $ 43,361 | |
Investment in time deposits | 1,721 | 1,477 | |
Investment securities | 629,829 | 617,592 | |
Loans held for sale | 1,465 | 683 | |
Loans | 2,580,066 | 2,546,666 | |
Less: allowance for credit losses | (34,196) | (28,511) | |
Net loans | 2,545,870 | 2,518,155 | |
Other securities | 35,383 | 33,585 | |
Premises and equipment, net | 61,895 | 64,018 | |
Goodwill and other intangibles | 135,808 | 136,454 | |
Bank owned life insurance | 53,796 | 53,543 | |
Other assets | 66,068 | 68,962 | |
Total assets | $ 3,584,558 | $ 3,537,830 | |
Total deposits | $ 2,843,516 | $ 2,619,984 | |
Federal Home Loan Bank advances - short term | 212,000 | 393,700 | |
Federal Home Loan Bank advances - long term | 3,361 | 3,578 | |
Securities sold under agreements to repurchase | 15,631 | 25,143 | |
Subordinated debentures | 103,841 | 103,799 | |
Other borrowings | 13,938 | 15,516 | |
Securities purchased payable | - | 1,338 | |
Tax refunds in process | 5,752 | 278 | |
Accrued expenses and other liabilities | 38,822 | 39,658 | |
Total shareholders' equity | 347,697 | 334,836 | |
Total liabilities and shareholders' equity | $ 3,584,558 | $ 3,537,830 | |
Shares outstanding at period end | 15,732,092 | 15,728,234 | |
Book value per share | $ 22.10 | $ 21.29 | |
Equity to asset ratio | 9.70 % | 9.46 % | |
Selected asset quality ratios: | |||
Allowance for loan losses to total loans | 1.33 % | 1.12 % | |
Non-performing assets to total assets | 0.28 % | 0.31 % | |
Allowance for loan losses to non-performing loans | 346.82 % | 261.45 % | |
Non-performing asset analysis | |||
Nonaccrual loans | $ 6,980 | $ 7,890 | |
Troubled debt restructurings | 2,880 | 3,015 | |
Other real estate owned | 26 | - | |
Total | $ 9,886 | $ 10,905 | |
Supplemental Financial Information | |||||||||
(Unaudited - dollars in thousands except share data) | |||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||
End of Period Balances | 2023 | 2022 | 2022 | 2022 | 2022 | ||||
Assets | |||||||||
Cash and due from banks | $ 52,723 | $ 43,361 | $ 40,914 | $ 233,281 | $ 412,698 | ||||
Investment in time deposits | 1,721 | 1,477 | 1,479 | 1,236 | 1,728 | ||||
Investment securities | 629,829 | 617,592 | 604,074 | 531,978 | 553,499 | ||||
Loans held for sale | 1,465 | 683 | 3,491 | 4,167 | 4,794 | ||||
Loans | 2,580,066 | 2,546,666 | 2,328,614 | 2,064,221 | 2,018,188 | ||||
Allowance for credit losses | (34,196) | (28,511) | (27,773) | (27,435) | (27,033) | ||||
Net Loans | 2,545,870 | 2,518,155 | 2,300,841 | 2,036,786 | 1,991,155 | ||||
Other securities | 35,383 | 33,585 | 18,578 | 18,511 | 18,511 | ||||
Premises and equipment, net | 61,895 | 64,018 | 30,168 | 24,151 | 22,110 | ||||
Goodwill and other intangibles | 135,808 | 136,454 | 113,206 | 84,021 | 84,251 | ||||
Bank owned life insurance | 53,796 | 53,543 | 53,291 | 47,118 | 46,885 | ||||
Other assets | 66,068 | 68,962 | 75,677 | 57,850 | 48,726 | ||||
Total Assets | $ 3,584,558 | $ 3,537,830 | $ 3,241,719 | $ 3,039,099 | $ 3,184,357 | ||||
Liabilities | |||||||||
Total deposits | $ 2,843,516 | $ 2,619,984 | $ 2,708,253 | $ 2,455,502 | $ 2,615,137 | ||||
Federal Home Loan Bank advances - short term | 212,000 | 393,700 | 55,000 | - | - | ||||
Federal Home Loan Bank advances - long term | 3,361 | 3,578 | 6,723 | 75,000 | 75,000 | ||||
Securities sold under agreement to repurchase | 15,631 | 25,143 | 20,155 | 17,479 | 23,931 | ||||
Subordinated debentures | 103,841 | 103,799 | 103,778 | 103,737 | 103,704 | ||||
Other borrowings | 13,938 | 15,516 | - | - | - | ||||
Securities purchased payable | - | 1,338 | 2,611 | 15,025 | 1,876 | ||||
Tax refunds in process | 5,752 | 278 | 2,709 | 39,448 | 10,232 | ||||
Accrued expenses and other liabilities | 38,822 | 39,658 | 39,888 | 30,846 | 26,785 | ||||
Total liabilities | 3,236,861 | 3,202,994 | 2,939,117 | 2,737,037 | 2,856,665 | ||||
Shareholders' Equity | |||||||||
Common shares | 310,412 | 310,182 | 299,515 | 278,240 | 277,919 | ||||
Retained earnings | 161,110 | 156,493 | 146,546 | 137,592 | 131,934 | ||||
Treasury shares | (73,915) | (73,794) | (73,641) | (67,528) | (61,472) | ||||
Accumulated other comprehensive income(loss) | (49,910) | (58,045) | (69,818) | (46,242) | (20,689) | ||||
Total shareholders' equity | 347,697 | 334,836 | 302,602 | 302,062 | 327,692 | ||||
Total Liabilities and Shareholders' Equity | $ 3,584,558 | $ 3,537,830 | $ 3,241,719 | $ 3,039,099 | $ 3,184,357 | ||||
Quarterly Average Balances | |||||||||
Assets: | |||||||||
Earning assets | $ 3,211,902 | $ 3,099,501 | $ 3,002,256 | $ 2,866,362 | $ 2,814,589 | ||||
Securities | 655,987 | 630,127 | 622,924 | 556,352 | 575,359 | ||||
Loans | 2,548,518 | 2,458,980 | 2,289,588 | 2,033,378 | 2,006,984 | ||||
Liabilities and Shareholders' Equity | |||||||||
Total deposits | $ 2,654,356 | $ 2,649,755 | $ 2,719,014 | $ 2,524,971 | $ 2,557,638 | ||||
Interest-bearing deposits | 1,692,470 | 1,710,019 | 1,738,015 | 1,630,084 | 1,623,984 | ||||
Other interest-bearing liabilities | 515,122 | 407,710 | 155,077 | 200,005 | 204,299 | ||||
Total shareholders' equity | 341,159 | 299,509 | 305,134 | 313,272 | 347,302 | ||||
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 | 2023 | 2022 | 2022 | 2022 | 2022 | ||||
Total interest and dividend income | $ 41,539 | $ 37,990 | $ 32,533 | $ 26,064 | $ 24,666 | ||||
Total interest expense | 8,938 | 5,425 | 2,094 | 1,796 | 1,734 | ||||
Net interest income | 32,601 | 32,565 | 30,439 | 24,268 | 22,932 | ||||
Provision for loan losses | 620 | 752 | 300 | 400 | 300 | ||||
Noninterest income | 11,068 | 10,064 | 5,734 | 5,635 | 7,643 | ||||
Noninterest expense | 27,633 | 27,301 | 22,555 | 20,379 | 20,258 | ||||
Income before taxes | 15,416 | 14,576 | 13,318 | 9,124 | 10,017 | ||||
Income tax expense | 2,528 | 2,428 | 2,206 | 1,423 | 1,551 | ||||
Net income | $ 12,888 | $ 12,148 | $ 11,112 | $ 7,701 | $ 8,466 | ||||
Per share data | |||||||||
Earnings per common share | |||||||||
Basic | |||||||||
Net income | $ 12,888 | $ 12,148 | $ 11,112 | $ 7,701 | $ 8,466 | ||||
Less allocation of earnings and | |||||||||
dividends to participating securities | 453 | 432 | 52 | 39 | 32 | ||||
Net income available to common | |||||||||
shareholders - basic | $ 12,435 | $ 11,716 | $ 11,060 | $ 7,662 | $ 8,434 | ||||
Weighted average common shares outstanding | 15,732,092 | 15,717,439 | 15,394,898 | 14,615,154 | 14,909,192 | ||||
Less average participating securities | 552,882 | 559,596 | 71,604 | 74,286 | 55,905 | ||||
Weighted average number of shares outstanding | |||||||||
used to calculate basic earnings per share | 15,179,210 | 15,157,843 | 15,323,294 | 14,540,868 | 14,853,287 | ||||
Earnings per common share | |||||||||
Basic | $ 0.82 | $ 0.77 | $ 0.72 | $ 0.53 | $ 0.57 | ||||
Diluted | 0.82 | 0.77 | 0.72 | 0.53 | 0.57 | ||||
Common shares dividend paid | $ 2,201 | $ 2,202 | $ 2,042 | $ 2,091 | $ 2,104 | ||||
Dividends paid per common share | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 | ||||
Supplemental Financial Information | |||||||||
(Unaudited - dollars in thousands except share data) | |||||||||
Three Months Ended | |||||||||
March | December | September | June | March | |||||
Asset quality | 2023 | 2022 | 2022 | 2022 | 2022 | ||||
Allowance for credit losses: | |||||||||
Beginning of period | $ 28,511 | $ 27,773 | $ 27,435 | $ 27,033 | $ 26,641 | ||||
CECL adoption adjustments | 5,193 | - | - | - | - | ||||
Charge-offs | (175) | (58) | (74) | (60) | (30) | ||||
Recoveries | 47 | 44 | 112 | 62 | 122 | ||||
Provision | 620 | 752 | 300 | 400 | 300 | ||||
End of period | $ 34,196 | $ 28,511 | $ 27,773 | $ 27,435 | $ 27,033 | ||||
Allowance for unfunded commitments: | |||||||||
Beginning of period | $ - | $ - | $ - | $ - | $ - | ||||
CECL adoption adjustments | 3,386 | - | - | - | - | ||||
Charge-offs | - | - | - | - | - | ||||
Recoveries | - | - | - | - | - | ||||
Provision | 201 | - | - | - | - | ||||
End of period | $ 3,587 | $ - | $ - | $ - | $ - | ||||
Ratios | |||||||||
Allowance to total loans | 1.33 % | 1.12 % | 1.19 % | 1.33 % | 1.34 % | ||||
Allowance to nonperforming assets | 345.91 % | 261.45 % | 476.24 % | 572.78 % | 501.50 % | ||||
Allowance to nonperforming loans | 345.82 % | 261.45 % | 476.24 % | 572.78 % | 501.50 % | ||||
Nonperforming assets | |||||||||
Nonperforming loans | $ 9,860 | $ 10,905 | $ 5,832 | $ 4,790 | $ 5,390 | ||||
Other real estate owned | 26 | - | - | - | - | ||||
Total nonperforming assets | $ 9,886 | $ 10,905 | $ 5,832 | $ 4,790 | $ 5,390 | ||||
Capital and liquidity | |||||||||
Tier 1 leverage ratio | 8.63 % | 8.92 % | 9.32 % | 9.87 % | 9.50 % | ||||
Tier 1 risk-based capital ratio | 10.80 % | 10.78 % | 11.62 % | 13.63 % | 14.02 % | ||||
Total risk-based capital ratio | 14.73 % | 14.52 % | 15.62 % | 18.24 % | 18.74 % | ||||
Tangible common equity ratio (1) | 6.14 % | 5.83 % | 6.05 % | 7.38 % | 7.85 % | ||||
(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, | |||||
2023 | 2022 | 2022 | 2022 | 2022 | |||||
Tangible Common Equity | |||||||||
Total Shareholder's Equity - GAAP | $ 347,697 | $ 334,835 | $ 302,602 | $ 302,062 | $ 327,692 | ||||
Less: Goodwill and intangible assets | 135,808 | 136,454 | 113,206 | 84,021 | 84,251 | ||||
Tangible common equity (Non-GAAP) | $ 211,889 | $ 198,381 | $ 189,396 | $ 218,041 | $ 243,441 | ||||
Total Shares Outstanding | 15,732,092 | 15,728,234 | 15,235,545 | 14,537,433 | 14,797,232 | ||||
Tangible book value per share | $ 13.47 | $ 12.61 | $ 12.43 | $ 15.00 | $ 16.45 | ||||
Tangible Assets | |||||||||
Total Assets - GAAP | $ 3,587,118 | $ 3,537,830 | $ 3,241,719 | $ 3,039,099 | $ 3,184,357 | ||||
Less: Goodwill and intangible assets | 135,808 | 136,454 | 113,206 | 84,021 | 84,251 | ||||
Tangible assets (Non-GAAP) | $ 3,451,310 | $ 3,401,376 | $ 3,128,513 | $ 2,955,078 | $ 3,100,106 | ||||
Tangible common equity to tangible assets | 6.14 % | 5.83 % | 6.05 % | 7.38 % | 7.85 % | ||||
SOURCE Civista Bancshares, Inc.
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