Categories: Current Reports

$CIVB Civista Bancshares Announces 2018 Results, Year Financials

Civista Bancshares, Inc. Announces Fourth Quarter and Year-to-date 2018 Earnings

Sandusky, Ohio, February 15, 2019 / PRNewswire / SEC / – Civista Bancshares, Inc. (NASDAQ:CIVB) (“Civista”) reported net income available to common shareholders of $7.4 million, or $0.45 per diluted share, for the fourth quarter of 2018. This compares to net income available to common shareholders of $3.7 million, or $0.32 per diluted share, for the fourth quarter of 2017, which included $511 thousand or $0.04 per diluted share for the revaluation of deferred tax assets as a result of the decrease in the federal corporate tax rate.

For the twelve-month period ended December 31, 2018, Civista reported net income available to common shareholders of $13.2 million or $1.02 per diluted share. This compares to $14.6 million or $1.28 per diluted share, in the same period of 2017, which included $511 thousand or $0.04 per diluted share for the revaluation of deferred tax assets as a result of the decrease in the federal corporate tax rate.

“Our Civista team once again put together a great year for our customers and shareholders. Our overall asset growth was 40.2%. Much of that was due to the acquisition of United Community Bancorp (“UCB”). We were also successful in increasing loans 8.4% exclusive of the acquisition. The integration of the UCB systems and personnel is complete. While we have worked extensively on loan production and the UCB acquisition, we have not lost our focus on asset quality, which remains very good.” said Dennis G. Shaffer, President and CEO of Civista.

Factors Affecting Comparability

Most recently, Civista acquired United Community Bancorp in September 2018. The financial position and results of operations of UCB prior to its acquisition date are not included in the Company’s financial results for periods prior to the acquisition date.

Adjusted Earnings

Financial results for the fourth quarter and twelve months ended December 31, 2018 included $782 thousand and $12.7 million respectively, in acquisition and integration expenses, as well as a loss on sale of securities of $413 thousand. Excluding these items, adjusted earnings were $8.1 million, or $0.49 diluted earnings per share, for the fourth quarter of 2018 and $24.7 million, or $1.85 diluted earnings per share, for the twelve months ended December 31, 2018.

Income taxes for the fourth quarter and year ended December 31, 2017 included $511 thousand increase as a result of the change in the federal income tax rate related to the Tax cuts and Jobs Act. Excluding this item, adjusted earnings were $4.1 million, or $0.36 diluted earnings per share, for the fourth quarter of 2017 and $15.1 million, or $1.33 diluted earnings per share, for the twelve months ended December 31, 2017.


A reconciliation of adjusted earnings to net income according to accounting principles generally accepted in the United States (“GAAP”) is provided in the financial tables at the end of this press release.

Results of Operations:

Net interest income increased $6.2 million, or 42.5%, for the fourth quarter of 2018, and $11.6 million, or 21.3%, for the twelve months ended December 31, compared to the same periods of 2017. Interest income increased $7.9 million, or 49.7%, for the fourth quarter of 2018 and $15.1 million or 25.7% for the twelve-month period ended December 31. Accretion income associated with purchased loan portfolios totaled $973 thousand for the fourth quarter of 2018. Interest income further increased for both periods, due to an increase in average earning assets, as well as an increase in yields, compared to 2017. The only category of interest earning assets that experienced a decrease in yield was non-taxable securities. The decrease in yield for non-taxable securities is due to the decrease in the federal income tax rate and subsequently, the tax equivalent yield. Interest expense increased $1.7 million, or 132.1 %, for the fourth quarter of 2018 and $3.5 million, or 85.0%, for the twelve months ended December 31 compared to the same periods of 2017. The increase in interest expense is due to both an increase in average balances and an increase in the cost of interest-bearing liabilities. The tax equivalent net interest margin increased 14 basis points to 4.38% for the fourth quarter of 2018, compared to 4.24% for the same period a year ago and increased 20 basis points to 4.21% for the twelve months ended December 31, 2018, compared to 4.01% for the same period a year ago. Civista’s net interest margin benefits from accretion income on purchased loan portfolios, which contributed 22 basis points and 6 basis points for the fourth quarter and year to date, respectively.

Mr. Shaffer continued, “While funding costs have been increasing throughout the industry, we have positioned our balance sheet to take advantage of rising rates. Through 2018 we have seen the benefits through the continued expansion of our margin”.

Full Financial Report available here.

Luke Rehmann

Recent Posts

OCC Announces Enforcement Actions for November 2024

WASHINGTON—The Office of the Comptroller of the Currency (OCC) today released enforcement actions taken against…

1 day ago

Remarks by Secretary of the Treasury Janet L. Yellen on the 30th Anniversary of the Community Development Financial Institution Fund

As Prepared for Delivery Good afternoon. It’s an honor to welcome President Clinton to Treasury today…

2 days ago

Treasury Sanctions Gazprombank and Takes Additional Steps to Curtail Russia’s Use of the International Financial System

Treasury imposes sanctions on dozens of Russian banks, securities registrars, and finance officials; OFAC issues…

2 days ago

Acting Comptroller Testifies on State of the Federal Banking System

WASHINGTON—Acting Comptroller Michael J. Hsu today testified on the state of the federal banking system…

2 days ago

Remarks by Assistant Secretary for International Finance Brent Neiman on the U.S. Cross-Border Payments Agenda

As Prepared for Delivery Thank you very much for the opportunity to be here today, and…

4 days ago