Civista Bancshares (CIVB) investor relations material

Executive summary

• Net income for Q2 2025 was $11M ($0.71/diluted share), up 56% year-over-year and 8% sequentially; adjusted for nonrecurring items, net income was $10.3M ($0.66/share).

• Net interest income increased 25.5% year-over-year to $34.8M, driven by higher loan balances and yields.

• Noninterest income declined 36.5% year-over-year, mainly due to lower lease revenue and non-recurring system conversion adjustments.

• Announced acquisition of The Farmers Savings Bank and completed a capital raise ($76M–$88.5M) to support growth and improve capital ratios.

• Quarterly dividend of $0.17/share maintained, representing a 3.2% yield and 24% payout ratio.

Financial highlights

• Net interest margin expanded to 3.64% from 3.09% a year ago, aided by lower funding costs and higher asset yields.

• Noninterest expense was $27.5M, down 3.2% year-over-year from lower compensation and equipment costs.

• Efficiency ratio improved to 64.5% from 72.6% in Q2 2024.

• Total assets reached $4.2B, up 2.1% from December 2024.

• Deposits decreased 0.5% to $3.20B, with a shift from noninterest-bearing to time deposits.

Outlook and guidance

• Loan growth expected to remain mid-single digits for the rest of 2025, accelerating post-acquisition.

• Net interest margin projected in the low to mid 3.50s for Q3, with further expansion in Q4.

• FSB Merger expected to close in Q4 2025, adding $285M in assets and $183M in core deposits.

• Some near-term EPS pressure anticipated due to share issuance, but long-term earnings and ROA expected to improve.

• Management to focus on disciplined growth, deposit mix, and integration of acquisitions.