8-K
CIVISTA BANCSHARES, INC. (CIVB)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to section 13 or 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) October 27, 2022
Civista Bancshares, Inc.
(Exact name of Registrant as specified in its charter)
| Ohio | 001-36192 | 34-1558688 |
|---|---|---|
| (State or other jurisdiction of<br> <br>incorporation or organization) | (Commission<br> <br>File Number) | (IRS Employer<br> <br>Identification No.) |
100 East Water Street, P.O. Box 5016, Sandusky, Ohio 44870
(Address of principle executive offices)
Registrant’s telephone number, including area code: (419) 625-4121
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Act of 1934 (§240.12b-2 of this chapter)
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading<br>Symbol(s) | Name of each exchange<br> <br>on which registered |
|---|---|---|
| Common | CIVB | NASDAQ Capital Market |
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 | Results of Operations and Financial Condition |
|---|
On October 27, 2022, Civista Bancshares, Inc. announced preliminary unaudited earnings for the three and nine month periods ended September 30, 2022. A copy of the press release is furnished as Exhibit 99.1 to this report and incorporated here by reference.
In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
| Item 9.01 | Financial Statements and Exhibits |
|---|
Exhibit 104 Cover Page Interactive File-the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| Civista Bancshares, Inc. | |
|---|---|
| (Registrant) | |
| Date: October 27, 2022 | /s/ Todd A. Michel |
| Todd A. Michel, | |
| Senior Vice President & Controller |
3
EX-99.1
Exhibit 99.1
Civista Bancshares, Inc. Announces Third Quarter 2022 Financial Results
Sandusky, Ohio, October 27, 2022 /PRNewswire/– Civista Bancshares, Inc. (NASDAQ:CIVB) (“Civista”) announced its unaudited financial results for the three and nine month periods ending September 30, 2022.
Third quarter and year-to-date 2022 highlights:
| • | Net income of $11.1 million, or $0.72 per diluted share, for the third quarter of 2022, compared to<br>$9.6 million, or $0.64 per diluted share, for the third quarter of 2021. |
|---|---|
| • | Net income of $27.3 million, or $1.82 per diluted share, compared to $29.6 million, or $1.90 per<br>diluted share, for the nine months ended September 30, 2022 and 2021, respectively. |
| --- | --- |
| • | Low cost of deposits of 14 basis points and total funding costs of 29 basis points for the quarter.<br> |
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| • | Based on the September 30, 2022 market close share price of $20.76, the $0.14 third quarter dividend is<br>equivalent to an annualized yield of 2.70% and a dividend payout ratio of 19.44%. |
| --- | --- |
| • | On July 1, 2022, we consummated the merger of Comunibanc Corp. with and into Civista and Henry County Bank,<br>a wholly owned subsidiary of Comunibanc, with and into Civista Bank. |
| --- | --- |
| • | Negotiated the merger of Vision Financial Group, a leasing company based in Pittsburgh, PA, with and into Civista<br>Bank. The deal closed in the fourth quarter 2022. |
| --- | --- |
“We are extremely pleased with our third quarter results. Due to our strong core funding and rising interest rates, our net interest margin increased 60 basis points to 4.03% compared to the previous quarter. Net interest income increased 25.4% compared to the previous quarter as we primarily benefitted from our first full quarter of earnings from the Henry County Bank acquisition, the rising interest rate environment, and excellent organic loan growth” said Dennis G. Shaffer, CEO and President of Civista.
1
Results of Operations:
For the three-month period ended September 30, 2022 and 2021
Net interest income increased $6.0 million, or 24.6%, for the third quarter of 2022 compared to the same period of 2021. Interest income increased $6.7 million while interest expense increased $743 thousand. Both increases were primarily due to rates. Accretion of PPP fees was $122 thousand during the third quarter 2022 compared to $2.5 million for the same period in 2021.
Net interest margin increased 41 basis points to 4.03% for the third quarter of 2022, compared to 3.62% for the same period a year ago. The increase in margin is primarily due to increases in the volume of earning assets and to the yield on earning assets.
The increase in interest income was primarily due to a $254.8 million increase in average earning assets, which led to a $4.6 million increase in interest income. Additionally, increased interest rates led to a 48 basis point increase in asset yield and a $2.1 million increase in interest income.
Interest expense increased $743 thousand, or 55.0%, for the third quarter of 2022, compared to the same period last year. The average rate paid on interest-bearing liabilities increased 13 basis points, while average interest-bearing liabilities increased $177.5 million. The increase in the rate is primarily due to the issuance of $75 million, 3.25% subordinated debt in November 2021. The increase in interest rates has not yet translated to significant increases in deposit costs.
2
Average Balance Analysis
(Unaudited - Dollars in thousands)
| Three Months Ended September 30, | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | |||||||||||||||
| Average<br>balance | Interest | Yield/<br>rate * | Average<br>balance | Interest | Yield/<br>rate * | |||||||||||
| Assets: | ||||||||||||||||
| Interest-earning assets: | ||||||||||||||||
| Loans ** | $ | 2,289,588 | $ | 27,176 | 4.71 | % | $ | 2,010,665 | $ | 22,704 | 4.48 | % | ||||
| Taxable securities *** | 354,597 | 2,936 | 3.06 | % | 264,655 | 1,423 | 2.18 | % | ||||||||
| Non-taxable securities *** | 268,327 | 1,998 | 3.47 | % | 217,987 | 1,555 | 3.91 | % | ||||||||
| Interest-bearing deposits in other banks | 89,744 | 423 | 1.87 | % | 254,143 | 102 | 0.16 | % | ||||||||
| Total interest-earning assets *** | $ | 3,002,256 | 32,533 | 4.30 | % | $ | 2,747,450 | 25,784 | 3.82 | % | ||||||
| Noninterest-earning assets: | ||||||||||||||||
| Cash and due from financial institutions | 58,581 | 33,803 | ||||||||||||||
| Premises and equipment, net | 28,633 | 22,845 | ||||||||||||||
| Accrued interest receivable | 8,907 | 7,417 | ||||||||||||||
| Intangible assets | 84,265 | 84,949 | ||||||||||||||
| Bank owned life insurance | 53,131 | 46,557 | ||||||||||||||
| Other assets | 48,013 | 38,189 | ||||||||||||||
| Less allowance for loan losses | (27,546 | ) | (26,683 | ) | ||||||||||||
| Total Assets | $ | 3,256,240 | $ | 2,954,527 | ||||||||||||
| Liabilities and Shareholders’ Equity: | ||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||
| Demand and savings | $ | 1,457,112 | $ | 379 | 0.10 | % | $ | 1,331,032 | $ | 302 | 0.09 | % | ||||
| Time | 280,903 | 557 | 0.79 | % | 257,047 | 668 | 1.03 | % | ||||||||
| Short-term FHLB advances | 6,713 | 48 | 2.84 | % | — | — | 0.00 | % | ||||||||
| Long-term FHLB advances | 25,336 | 133 | 2.08 | % | 75,000 | 194 | 1.03 | % | ||||||||
| Subordinated debentures | 103,751 | 975 | 3.73 | % | 29,427 | 182 | 2.45 | % | ||||||||
| Repurchase agreements | 19,277 | 2 | 0.04 | % | 23,084 | 5 | 0.09 | % | ||||||||
| Total interest-bearing liabilities | $ | 1,893,092 | 2,094 | 0.44 | % | $ | 1,715,590 | 1,351 | 0.31 | % | ||||||
| Noninterest-bearing deposits | 980,999 | 849,501 | ||||||||||||||
| Other liabilities | 77,015 | 40,466 | ||||||||||||||
| Shareholders’ equity | 305,134 | 348,970 | ||||||||||||||
| Total Liabilities and Shareholders’ Equity | $ | 3,256,240 | $ | 2,954,527 | ||||||||||||
| Net interest income and interest rate spread | $ | 30,439 | 3.86 | % | $ | 24,433 | 3.50 | % | ||||||||
| Net interest margin *** | 4.03 | % | 3.62 | % | ||||||||||||
| * | Average yields are presented on a tax equivalent basis. The tax equivalent effect associated with loans and<br>investments, included in the yields above, was $532 thousand and $414 thousand for the periods ended September 30, 2022 and 2021, respectively. | |||||||||||||||
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| ** | Average balance includes nonaccrual loans | |||||||||||||||
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| *** | Average yield on investments were calculated by adjusting the average balances of taxable and nontaxable<br>securities by unrealized losses of $46.9 million in 2022 and by unrealized gains of $24.5 million in 2021. These adjustments were also made when calculating the yield on earning assets and the margin. | |||||||||||||||
| --- | --- |
3
For the nine-month period ended September 30, 2022 and 2021
Net interest income increased $5.5 million, or 7.7%, compared to the same period in 2021.
Interest income increased $6.3 million, or 8.1%, for the first nine months of 2022. Average earning assets increased $52.6 million, resulting in an increase in interest income of $6.1 million. While average yields increased 17 basis points, interest income only increased $152 thousand due to yield. During the nine-month period, the Bank had average PPP Loans totaling $13.7 million compared to $187.4 million for the same period last year. For the nine months ended September 30, 2022, these loans had an average yield of 17.82% including the amortization of PPP fees, which increased the margin by 7 basis points.
Interest expense increased $718 thousand, or 14.6%, for the first nine months of 2022 compared to the same period of 2021. Average rates increased 3 basis points and average interest-bearing liabilities increased $126.8 million, resulting in a $1.4 million increase in interest expense.
Net interest margin increased 14 basis points to 3.62% for the first nine months of 2022, compared to 3.48% for the same period a year ago.
4
Average Balance Analysis
(Unaudited - Dollars in thousands)
| Nine Months Ended September 30, | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | |||||||||||||||
| Average<br>balance | Interest | Yield/<br>rate * | Average<br>balance | Interest | Yield/<br>rate * | |||||||||||
| Assets: | ||||||||||||||||
| Interest-earning assets: | ||||||||||||||||
| Loans ** | $ | 2,111,019 | $ | 70,065 | 4.44 | % | $ | 2,044,741 | $ | 68,140 | 4.46 | % | ||||
| Taxable securities *** | 322,262 | 6,431 | 2.53 | % | 214,979 | 3,928 | 2.51 | % | ||||||||
| Non-taxable securities *** | 262,790 | 5,669 | 3.55 | % | 211,538 | 4,599 | 4.02 | % | ||||||||
| Interest-bearing deposits in other banks | 199,019 | 1,098 | 0.74 | % | 371,204 | 341 | 1.20 | % | ||||||||
| Total interest-earning assets *** | $ | 2,895,090 | 83,263 | 3.88 | % | $ | 2,842,462 | 77,008 | 3.71 | % | ||||||
| Noninterest-earning assets: | ||||||||||||||||
| Cash and due from financial institutions | 108,220 | 37,763 | ||||||||||||||
| Premises and equipment, net | 24,429 | 22,578 | ||||||||||||||
| Accrued interest receivable | 8,025 | 8,146 | ||||||||||||||
| Intangible assets | 84,268 | 84,817 | ||||||||||||||
| Bank owned life insurance | 48,965 | 46,310 | ||||||||||||||
| Other assets | 44,077 | 37,504 | ||||||||||||||
| Less allowance for loan losses | (27,168 | ) | (26,288 | ) | ||||||||||||
| Total Assets | $ | 3,185,906 | $ | 3,053,292 | ||||||||||||
| Liabilities and Shareholders’ Equity: | ||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||
| Demand and savings | $ | 1,414,215 | $ | 860 | 0.08 | % | $ | 1,297,217 | $ | 979 | 0.10 | % | ||||
| Time | 250,230 | 1,491 | 0.80 | % | 270,139 | 2,387 | 1.18 | % | ||||||||
| Short-term FHLB advances | 2,380 | 49 | 2.75 | % | — | — | 0.00 | % | ||||||||
| Long-term FHLB advances | 58,263 | 515 | 1.18 | % | 100,458 | 968 | 1.29 | % | ||||||||
| Subordinated debentures | 103,726 | 2,701 | 3.48 | % | 29,427 | 553 | 2.51 | % | ||||||||
| Repurchase agreements | 21,910 | 8 | 0.05 | % | 26,695 | 19 | 0.10 | % | ||||||||
| Total interest-bearing liabilities | $ | 1,850,724 | 5,624 | 0.41 | % | $ | 1,723,936 | 4,906 | 0.38 | % | ||||||
| Noninterest-bearing deposits | 936,686 | 940,123 | ||||||||||||||
| Other liabilities | 76,748 | 39,952 | ||||||||||||||
| Shareholders’ equity | 321,748 | 349,281 | ||||||||||||||
| Total Liabilities and Shareholders’ Equity | $ | 3,185,906 | $ | 3,053,292 | ||||||||||||
| Net interest income and interest rate spread | $ | 77,639 | 3.48 | % | $ | 72,102 | 3.33 | % | ||||||||
| Net interest margin *** | 3.62 | % | 3.48 | % | ||||||||||||
| * | Average yields are presented on a tax equivalent basis. The tax equivalent effect associated with loans and<br>investments, included in the yields above, was $1.5 million and $1.2 million for the periods ended September 30, 2022 and 2021, respectively. | |||||||||||||||
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| ** | Average balance includes nonaccrual loans | |||||||||||||||
| --- | --- | |||||||||||||||
| *** | Average yield on investments were calculated by adjusting the average balances of taxable and nontaxable<br>securities by unrealized losses of $24.7 million in 2022 and by unrealized gains of $23.9 million in 2021. These adjustments were also made when calculating the yield on earning assets and the margin. | |||||||||||||||
| --- | --- |
5
Provision for loan losses was $300 thousand for the third quarter of 2022 while nothing was provided in the third quarter of 2021. Provision for loan losses was $1.0 million for the first nine months of 2022 compared to $830 thousand for the first nine months of 2021. The reserve ratio was 1.19% at September 30, 2022 and 1.33% at December 31, 2021. Loans outstanding at September 30, 2022 include approximately $174.3 million related to the acquisition of Comunibanc, including a $2.8 million credit mark.
For the third quarter of 2022, noninterest income totaled $5.7 million, a decrease of $692 thousand, or 10.8%, compared to the prior year’s third quarter.
Noninterest income
(unaudited - dollars in thousands)
| Three months ended September 30, | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | change | % change | |||||||
| Service charges | $ | 1,885 | $ | 1,519 | 24.1 | % | ||||
| Net gain on sale of securities | 4 | 4 | 0.0 | % | ||||||
| Net gain/(loss) on equity securities | (133 | ) | 50 | ) | -366.0 | % | ||||
| Net gain on sale of loans | 637 | 1,612 | ) | -60.5 | % | |||||
| ATM/Interchange fees | 1,394 | 1,330 | 4.8 | % | ||||||
| Wealth management fees | 1,208 | 1,236 | ) | -2.3 | % | |||||
| Bank owned life insurance | 255 | 261 | ) | -2.3 | % | |||||
| Other | 484 | 373 | 29.8 | % | ||||||
| Total noninterest income | $ | 5,734 | $ | 6,426 | ) | -10.8 | % |
All values are in US Dollars.
Service charges increased due to a $196 thousand increase service charges on deposit accounts and a $130 thousand increase in overdraft fees.
Net loss on equity securities increased as a result of market value decreases.
Net gain on sale of loans decreased primarily because of a decrease in volume of loans sold, which was driven by increased interest rates. Proceeds from the sale of loans sold totaled $11.7 million and $21.2 million during the three months ended September 30, 2022 and 2021, respectively.
Other income increased as result of an increase in servicing fee income. Loans serviced total $457.1 million at September 30, 2022 compared to $395.3 million at September 30, 2021.
6
For the nine months ended September 30, 2022, noninterest income totaled $19.0 million, a decrease of $5.6 million, or 22.8%, compared to the same period in the prior year.
Noninterest income
(unaudited - dollars in thousands)
| Nine months ended September 30, | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | change | % change | |||||||
| Service charges | $ | 5,004 | $ | 4,092 | 22.3 | % | ||||
| Net gain on sale of securities | 10 | 1,787 | ) | -99.4 | % | |||||
| Net gain/(loss) on equity securities | (44 | ) | 191 | ) | -123.0 | % | ||||
| Net gain on sale of loans | 2,146 | 6,575 | ) | -67.4 | % | |||||
| ATM/Interchange fees | 3,990 | 3,950 | 1.0 | % | ||||||
| Wealth management fees | 3,713 | 3,570 | 4.0 | % | ||||||
| Bank owned life insurance | 732 | 752 | ) | -2.7 | % | |||||
| Tax refund processing fees | 2,375 | 2,375 | 0.0 | % | ||||||
| Other | 1,086 | 1,214 | ) | -10.5 | % | |||||
| Total noninterest income | $ | 19,012 | $ | 24,641 | ) | -22.8 | % |
All values are in US Dollars.
Service charges increased due to a $576 thousand increase overdraft fees and a $336 thousand increase in service charges on deposit accounts.
Net gain on sale of securities decreased due to the $1.8 million nonrecurring gain on the sale of Visa Class B shares in 2021.
Net loss on equity securities increased as a result of market value decreases.
Net gain on sale of loans decreased primarily because of a decrease in volume of loans sold, which was driven by increased interest rates. Proceeds from the sale of loans sold totaled $107.6 million and $204.7 million during the nine months ended September 30, 2022 and 2021, respectively.
Wealth management fees increased due to an increase in the average rate earned on the assets in 2022.
Other income decreased as result of a $203 thousand increase in insurance loss reserves at Civista’s reinsurance subsidiary. The loss reserve is an accrual against unpaid claims.
7
For the third quarter of 2022, noninterest expense totaled $22.6 million, an increase of $3.3 million, or 17.2%, compared to the prior year’s third quarter.
Noninterest expense
(unaudited - dollars in thousands)
| Three months ended September 30, | ||||||||
|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | change | % change | |||||
| Compensation expense | $ | 12,484 | $ | 11,390 | 9.6 | % | ||
| Net occupancy and equipment | 1,889 | 1,429 | 32.2 | % | ||||
| Contracted data processing | 846 | 429 | 97.2 | % | ||||
| Taxes and assessments | 799 | 758 | 5.4 | % | ||||
| Professional services | 1,335 | 776 | 72.0 | % | ||||
| Amortization of intangible assets | 456 | 223 | 104.5 | % | ||||
| ATM/Interchange expense | 604 | 594 | 1.7 | % | ||||
| Marketing | 372 | 359 | 3.6 | % | ||||
| Software maintenance expense | 942 | 819 | 15.0 | % | ||||
| Other | 2,828 | 2,474 | 14.3 | % | ||||
| Total noninterest expense | $ | 22,555 | $ | 19,251 | 17.2 | % |
All values are in US Dollars.
Compensation expense increased primarily due to the acquisition of Comunibanc Corp.
The increase in occupancy expense is due to increases in utilities and ground maintenance as a result of adding eight additional branches and general cost increases. Equipment expense increased due to office equipment purchases of $101 thousand.
Taxes and assessments increased as Franchise tax expense increased due to an increase in equity capital, which is the basis of the Ohio Financial Institutions tax. This was partially offset by a decrease in FDIC assessments due to lower assessment multipliers charged to Civista.
Professional services increased primarily due to one-time merger related legal and audit fees of $430 thousand, accompanied by increases in recruitment fees and fees related to increased call volumes at the Company’s call center.
The increase in amortization of intangible assets is related to the merger with Comunibanc Corp.
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, introduced in June 2021.
The increase in other operating expense is primarily due to merger related expenses of $116 thousand, travel, lodging and meals of $64 thousand.
The efficiency ratio was 61.4% for the quarter ended September 30, 2022 compared to 61.6% for the quarter ended September 30, 2021. The change in the efficiency ratio is primarily due to an increase in net interest income partially offset by an increase in noninterest expense.
Civista’s effective income tax rate for the third quarter 2022 was 16.6% compared to 16.9% in 2021.
8
For the nine months ended September 30, 2022, noninterest expense totaled $63.2 million, an increase of $2.5 million, or 4.1%, compared to the same period in the prior year.
Noninterest expense
(unaudited - dollars in thousands)
| Nine months ended September 30, | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | change | % change | ||||||
| Compensation expense | $ | 36,654 | $ | 34,578 | 6.0 | % | |||
| Net occupancy and equipment | 5,122 | 4,556 | 12.4 | % | |||||
| Contracted data processing | 1,899 | 1,362 | 39.4 | % | |||||
| Taxes and assessments | 2,416 | 2,436 | ) | -0.8 | % | ||||
| Professional services | 3,593 | 2,255 | 59.3 | % | |||||
| Amortization of intangible assets | 890 | 668 | 33.2 | % | |||||
| ATM/Interchange expense | 1,659 | 1,843 | ) | -10.0 | % | ||||
| Marketing | 1,069 | 1,000 | 6.9 | % | |||||
| Software maintenance expense | 2,440 | 1,872 | 30.3 | % | |||||
| Other | 7,450 | 10,132 | ) | -26.5 | % | ||||
| Total noninterest expense | $ | 63,192 | $ | 60,702 | 4.1 | % |
All values are in US Dollars.
The increase in compensation expense was due to increased payroll, 401k expenses, payroll taxes and commission and incentive-based costs. Payroll and payroll related expenses increased due to annual pay increases. The addition of Comunibanc also contributed to the increase.
Equipment expense increased due to a $354 thousand increase in computer and $202 thousand due to security equipment purchases.
Contracted data processing fees increased due to merger related system deconversion fees of $564, offset by a decrease in computer processing fees.
Professional services primarily increased due to a $991 thousand increase in merger related expenses legal and audit and a $264 thousand increase in consulting fees, including recruiter and call center costs.
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, introduced in June 2021.
The decrease in other expense is due to the 2021 prepayment penalty of $3.7 million related to the early payoff of an FHLB long-term advance. This was partially offset by a credit to the valuation adjustment for mortgage servicing rights posted in 2021 and increases in travel, lodging and meals, stationery and supplies and bad check expense.
The efficiency ratio was 64.4% for the nine months ended September 30, 2022 compared to 62.0% for the nine months ended September 30, 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 nine months of 2022 was 16.0% compared to 16.0% in same period in 2021.
9
Balance Sheet
Total assets increased $228.8 million, or 7.6%, from December 31, 2021 to September 30, 2022, primarily due to the acquisition of Comunibanc Corp. on July 1, 2022.
End of period loan balances
(unaudited - dollars in thousands)
| September 30,<br>2022 | December 31,<br>2021 | Change | % Change | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Commercial and Agriculture | $ | 226,568 | $ | 203,293 | 11.4 | % | |||
| Paycheck protection program loans | 819 | 43,209 | ) | -98.1 | % | ||||
| Commercial Real Estate: | |||||||||
| Owner Occupied | 364,468 | 295,452 | 23.4 | % | |||||
| Non-owner Occupied | 956,169 | 829,310 | 15.3 | % | |||||
| Residential Real Estate | 531,164 | 430,060 | 23.5 | % | |||||
| Real Estate Construction | 202,793 | 157,127 | 29.1 | % | |||||
| Farm Real Estate | 25,636 | 28,419 | ) | -9.8 | % | ||||
| Consumer and Other | 20,997 | 11,009 | 90.7 | % | |||||
| Total Loans | $ | 2,328,614 | $ | 1,997,879 | 16.6 | % |
All values are in US Dollars.
Loan balances increased $330.7 million, or 16.6% since December 31, 2021, including the $174.3 million portfolio related to Comunibanc Corp. The growth is partially offset by a $43.4 million decrease in PPP loans. Removing the balances in the portfolio related to Comunibanc and PPP loans, the loan portfolio increased $198.8 million or 10.2%. Commercial Real Estate continued to grow due to consistent demand in both the Non-owner Occupied and Owner Occupied categories. The growth has come from all regions and has been strong in our major metropolitan areas of Cleveland, Columbus and Cincinnati. Residential Real Estate has increased due to more need this year for the on-balance sheet products of residential construction loans, Jumbo Loans and our Community View CRA product. Commercial and Agriculture loans continue to grow as we successfully onboard new clients. Commercial Line of Credit utilization remains low. Real Estate Construction continues to increase as the construction demand remains steady and construction availability continues to be near all-time highs.
Paycheck Protection Program
In total, we processed over 3,600 loans totaling $399.4 million of PPP loans, of which $398.6 million have been forgiven or have paid off. We recognized $122 thousand of PPP fees in income during the quarter and $1.7 million of PPP fees in income during the nine months ended September 30, 2022. As of September 30, 2022, $38 thousand of unearned PPP fees remain.
10
Deposits
Total deposits increased $291.6 million, or 12.1%, from December 31, 2021 to September 30, 2022, including the addition of the $250.8 million of deposits related to the Comunibanc deal.
End of period deposit balances
(unaudited - dollars in thousands)
| September 30,<br>2022 | December 31,<br>2021 | Change | % Change | |||||
|---|---|---|---|---|---|---|---|---|
| Noninterest-bearing demand | $ | 944,241 | $ | 788,906 | 19.7 | % | ||
| Interest-bearing demand | 560,594 | 537,510 | 4.3 | % | ||||
| Savings and money market | 931,393 | 843,837 | 10.4 | % | ||||
| Time deposits | 272,025 | 246,448 | 10.4 | % | ||||
| Total Deposits | $ | 2,708,253 | $ | 2,416,701 | 12.1 | % |
All values are in US Dollars.
The increase in noninterest-bearing demand of $155.3 million was primarily due to $65.5 million of deposits related to the merger with Comunibanc Corp and to a $60.1 million increase in cash balances related to the Company’s participation in a tax refund processing program. In addition, demand deposit and public fund demand deposit accounts increased $19.7 million and $10.2 million, respectively. Interest-bearing demand deposits increased $23.1, primarily related to Comunibanc Corp balances, totaling $41.4 million. Personal and public-fund interest bearing demand accounts increased $8.0 million and $11.8 million, respectively. These increases were partially offset by decreases to business interest-bearing demand and Jumbo NOW accounts of $31.0 million and $9.5 million, respectively. Savings and money market balances increased $87.6 million, primarily related to Comunibanc Corp balances. Time deposits related to Comunibanc totaled $56.3 million, partially offset by a $17.4 million decrease to accounts over $100 thousand and a $ 11.4 million decrease to accounts under $100 thousand.
FHLB advances totaled $75.0 million at December 31, 2021. The entire outstanding balance was called in July. This was replaced by $6.7 million of term advances related to Comunibanc and to overnight advances of $55.0 million.
Stock Repurchase Program
During the first nine months of 2022, Civista repurchased 734,810 shares for $16.6 million at a weighted average price of $22.59 per share, including 392,847 shares repurchased under the previous authorization for $9.3 million. We have approximately $6.2 million remaining of the current $13.5 million repurchase authorization, which was approved in April 2022. 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.
11
Shareholders’ Equity
Total shareholders’ equity decreased $52.6 million from December 31, 2021 to September 30, 2022, primarily due to a $78.8 million increase in accumulated other comprehensive loss caused by an increase in interest rates. The increase in other comprehensive loss does not impact our regulatory capital adequacy ratios. Shareholders’ equity also decreased due to a $16.7 million repurchase of treasury shares. The decrease in equity was partially offset by a $21.0 million increase in retained earnings and a $21.8 million increase in common stock. The increase in common stock was primarily a result of shares issued related to the Comunibanc acquisition.
Asset Quality
Civista recorded net recoveries of $132 thousand for the nine months of 2022 compared to net recoveries of $710 thousand for the same period of 2021. The allowance for loan losses to loans ratio was 1.19% at September 30, 2022 and 1.33% at December 31, 2021.
Allowance for Loan Losses
(dollars in thousands)
| September 30,<br>2022 | September 30,<br>2021 | |||||
|---|---|---|---|---|---|---|
| Beginning of period | $ | 26,641 | $ | 25,028 | ||
| Charge-offs | (164 | ) | (148 | ) | ||
| Recoveries | 296 | 858 | ||||
| Provision | 1,000 | 830 | ||||
| End of period | $ | 27,773 | $ | 26,568 |
Non-performing assets at September 30, 2022 were $5.8 million, an 8.6% increase from December 31, 2021. The non-performing assets to assets ratio 0.18% at both September 30, 2022 and December 31, 2021. The allowance for loan losses to non-performing loans decreased from 496.10% at December 31, 2021 to 476.24% at September 30, 2022.
Non-performing Assets
(dollars in thousands)
| September 30,<br>2022 | December 31,<br>2021 | |||
|---|---|---|---|---|
| Non-accrual loans | $ | 5,002 | $ | 3,873 |
| Restructured loans | 830 | 1,497 | ||
| Total non-performing loans | 5,832 | 5,370 | ||
| Other Real Estate Owned | — | — | ||
| Total non-performing assets | $ | 5,832 | $ | 5,370 |
12
Conference Call and Webcast
Civista Bancshares, Inc. will also host a conference call to discuss the Company’s financial results for the third quarter of 2022 at 1:00 p.m. ET on Thursday, October 27, 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. third 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.
13
Civista Bancshares, Inc. is a $3.2 billion financial holding company headquartered in Sandusky, Ohio. Civista’s banking subsidiary, Civista Bank, operates 43 locations in Northern, Central, Northwestern and Southwestern Ohio, Southeastern Indiana and Northern Kentucky. Additional information on Civista may be accessed at www.civb.com, but information at that website is not part of this press release nor is it part of any filing by Civista with the Securities and Exchange Commission. Civista’s common shares are traded on the NASDAQ Capital Market under the symbol “CIVB”.
For additional information, contact:
Dennis G. Shaffer
CEO and President
Civista Bancshares, Inc.
888-645-4121
14
Civista Bancshares, Inc.
Financial Highlights
(Unaudited, dollars in thousands, except share and per share amounts)
Consolidated Condensed Statement of Income
| Three Months Ended | Nine Months Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, | September 30, | |||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||
| Interest income | $ | 32,533 | $ | 25,784 | $ | 83,263 | $ | 77,008 | ||||
| Interest expense | 2,094 | 1,351 | 5,624 | 4,906 | ||||||||
| Net interest income | 30,439 | 24,433 | 77,639 | 72,102 | ||||||||
| Provision for loan losses | 300 | — | 1,000 | 830 | ||||||||
| Net interest income after provision | 30,139 | 24,433 | 76,639 | 71,272 | ||||||||
| Noninterest income | 5,734 | 6,426 | 19,012 | 24,641 | ||||||||
| Noninterest expense | 22,555 | 19,251 | 63,192 | 60,702 | ||||||||
| Income before taxes | 13,318 | 11,608 | 32,459 | 35,211 | ||||||||
| Income tax expense | 2,206 | 1,966 | 5,180 | 5,647 | ||||||||
| Net income | 11,112 | 9,642 | 27,279 | 29,564 | ||||||||
| Dividends paid per common share | $ | 0.14 | $ | 0.14 | $ | 0.42 | $ | 0.38 | ||||
| Earnings per common share | ||||||||||||
| Basic | ||||||||||||
| Net income | $ | 11,112 | $ | 9,642 | $ | 27,279 | $ | 29,564 | ||||
| Less allocation of earnings and dividends to participating securities | 52 | 46 | 122 | 122 | ||||||||
| Net income available to common shareholders - basic | $ | 11,060 | $ | 9,596 | $ | 27,157 | $ | 29,442 | ||||
| Weighted average common shares outstanding | 15,394,898 | 15,168,233 | 14,974,863 | 15,543,488 | ||||||||
| Less average participating securities | 71,604 | 72,071 | 67,323 | 64,064 | ||||||||
| Weighted average number of shares outstanding used to calculate basic earnings per share | 15,323,294 | 15,096,162 | 14,907,540 | 15,479,424 | ||||||||
| Earnings per common share ^(1)^ | ||||||||||||
| Basic | $ | 0.72 | $ | 0.64 | $ | 1.82 | $ | 1.90 | ||||
| Diluted | 0.72 | 0.64 | 1.82 | 1.90 | ||||||||
| Selected financial ratios: | ||||||||||||
| Return on average assets | 1.35 | % | 1.29 | % | 1.14 | % | 1.29 | % | ||||
| Return on average equity | 14.45 | % | 10.96 | % | 11.34 | % | 11.32 | % | ||||
| Dividend payout ratio | 19.40 | % | 22.02 | % | 23.06 | % | 19.98 | % | ||||
| Net interest margin (tax equivalent) | 4.03 | % | 3.62 | % | 3.62 | % | 3.48 | % |
15
Selected Balance Sheet Items
(Dollars in thousands, except share and per share amounts)
| September 30,<br>2022 | December 31,<br>2021 | |||||
|---|---|---|---|---|---|---|
| (unaudited) | (unaudited) | |||||
| Cash and due from financial institutions | $ | 40,914 | $ | 264,239 | ||
| Investment in time deposits | 1,479 | 1,730 | ||||
| Investment securities | 604,074 | 560,946 | ||||
| Loans held for sale | 3,491 | 1,972 | ||||
| Loans | 2,328,614 | 1,997,879 | ||||
| Less: allowance for loan losses | (27,773 | ) | (26,641 | ) | ||
| Net loans | 2,300,841 | 1,971,238 | ||||
| Other securities | 18,578 | 17,011 | ||||
| Premises and equipment, net | 30,168 | 22,445 | ||||
| Goodwill and other intangibles | 113,206 | 84,432 | ||||
| Bank owned life insurance | 53,291 | 46,641 | ||||
| Other assets | 75,677 | 42,251 | ||||
| Total assets | $ | 3,241,719 | $ | 3,012,905 | ||
| Total deposits | $ | 2,708,253 | $ | 2,416,701 | ||
| Federal Home Loan Bank advances | 61,723 | 75,000 | ||||
| Securities sold under agreements to repurchase | 20,155 | 25,495 | ||||
| Subordinated debentures | 103,778 | 103,735 | ||||
| Securities purchased payable | 2,611 | 3,524 | ||||
| Tax refunds in process | 2,709 | 549 | ||||
| Accrued expenses and other liabilities | 39,888 | 32,689 | ||||
| Total shareholders’ equity | 302,602 | 355,212 | ||||
| Total liabilities and shareholders’ equity | $ | 3,241,719 | $ | 3,012,905 | ||
| Shares outstanding at period end | 15,235,545 | 14,954,200 | ||||
| Book value per share | $ | 19.86 | $ | 23.75 | ||
| Equity to asset ratio | 9.33 | % | 11.79 | % | ||
| Selected asset quality ratios: | ||||||
| Allowance for loan losses to total loans | 1.19 | % | 1.33 | % | ||
| Non-performing assets to total assets | 0.18 | % | 0.18 | % | ||
| Allowance for loan losses to non-performing loans | 476.24 | % | 496.10 | % | ||
| Non-performing asset analysis | ||||||
| Nonaccrual loans | $ | 5,002 | $ | 3,873 | ||
| Troubled debt restructurings | 830 | 1,497 | ||||
| Other real estate owned | — | — | ||||
| Total | $ | 5,832 | $ | 5,370 |
16
Supplemental Financial Information
(Unaudited - dollars in thousands except share data)
| End of Period Balances | September 30,<br>2022 | June 30,<br>2022 | March 31,<br>2022 | December 31,<br>2021 | September 30,<br>2021 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Assets | |||||||||||||||
| Cash and due from banks | $ | 40,914 | $ | 233,281 | $ | 412,698 | $ | 264,239 | $ | 250,943 | |||||
| Investment in time deposits | 1,479 | 1,236 | 1,728 | 1,730 | 2,222 | ||||||||||
| Investment securities | 604,074 | 531,978 | 553,499 | 560,946 | 499,226 | ||||||||||
| Loans held for sale | 3,491 | 4,167 | 4,794 | 1,972 | 5,810 | ||||||||||
| Loans | 2,328,614 | 2,064,221 | 2,018,188 | 1,997,879 | 2,004,814 | ||||||||||
| Allowance for loan losses | (27,773 | ) | (27,435 | ) | (27,033 | ) | (26,641 | ) | (26,568 | ) | |||||
| Net Loans | 2,300,841 | 2,036,786 | 1,991,155 | 1,971,238 | 1,978,246 | ||||||||||
| Other securities | 18,578 | 18,511 | 18,511 | 17,011 | 17,011 | ||||||||||
| Premises and equipment, net | 30,168 | 24,151 | 22,110 | 22,445 | 22,716 | ||||||||||
| Goodwill and other intangibles | 113,206 | 84,021 | 84,251 | 84,432 | 84,589 | ||||||||||
| Bank owned life insurance | 53,291 | 47,118 | 46,885 | 46,641 | 46,728 | ||||||||||
| Other assets | 75,677 | 57,850 | 48,726 | 42,251 | 45,667 | ||||||||||
| Total Assets | $ | 3,241,719 | $ | 3,039,099 | $ | 3,184,357 | $ | 3,012,905 | $ | 2,953,158 | |||||
| Liabilities | |||||||||||||||
| Total deposits | $ | 2,708,253 | $ | 2,455,502 | $ | 2,615,137 | $ | 2,416,701 | $ | 2,434,766 | |||||
| Federal Home Loan Bank advances | 61,723 | 75,000 | 75,000 | 75,000 | 75,000 | ||||||||||
| Securities sold under agreement to repurchase | 20,155 | 17,479 | 23,931 | 25,495 | 23,331 | ||||||||||
| Subordinated debentures | 103,778 | 103,737 | 103,704 | 103,735 | 30,349 | ||||||||||
| Securities purchased payable | 2,611 | 15,025 | 1,876 | 3,524 | 3,857 | ||||||||||
| Tax refunds in process | 2,709 | 39,448 | 10,232 | 549 | 911 | ||||||||||
| Accrued expenses and other liabilities | 39,888 | 30,846 | 26,785 | 32,689 | 36,494 | ||||||||||
| Total liabilities | 2,939,117 | 2,737,037 | 2,856,665 | 2,657,693 | 2,604,708 | ||||||||||
| Shareholders’ Equity | |||||||||||||||
| Common shares | 299,515 | 278,240 | 277,919 | 277,741 | 277,627 | ||||||||||
| Retained earnings | 146,546 | 137,592 | 131,934 | 125,558 | 116,680 | ||||||||||
| Treasury shares | (73,641 | ) | (67,528 | ) | (61,472 | ) | (56,907 | ) | (55,155 | ) | |||||
| Accumulated other comprehensive income(loss) | (69,818 | ) | (46,242 | ) | (20,689 | ) | 8,820 | 9,298 | |||||||
| Total shareholders’ equity | 302,602 | 302,062 | 327,692 | 355,212 | 348,450 | ||||||||||
| Total Liabilities and Shareholders’ Equity | $ | 3,241,719 | $ | 3,039,099 | $ | 3,184,357 | $ | 3,012,905 | $ | 2,953,158 | |||||
| Quarterly Average Balances | |||||||||||||||
| Assets: | |||||||||||||||
| Earning assets | $ | 3,002,256 | $ | 2,866,362 | $ | 2,814,589 | $ | 2,773,498 | $ | 2,747,450 | |||||
| Securities | 622,924 | 556,352 | 575,359 | 522,058 | 482,642 | ||||||||||
| Loans | 2,289,588 | 2,033,378 | 2,006,984 | 1,973,989 | 2,010,665 | ||||||||||
| Liabilities and Shareholders’ Equity | |||||||||||||||
| Total deposits | $ | 2,719,014 | $ | 2,524,971 | $ | 2,557,638 | $ | 2,430,613 | $ | 2,437,580 | |||||
| Interest-bearing deposits | 1,738,015 | 1,630,084 | 1,623,984 | 1,619,560 | 1,588,079 | ||||||||||
| Other interest-bearing liabilities | 155,077 | 200,005 | 204,299 | 155,094 | 127,511 | ||||||||||
| Total shareholders’ equity | 305,134 | 313,272 | 347,302 | 348,971 | 348,970 |
17
Supplemental Financial Information
(Unaudited - dollars in thousands except share data)
| Three Months Ended | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Income statement | September 30,<br>2022 | June 30,<br>2022 | March 31,<br>2022 | December 31,<br>2021 | September 30,<br>2021 | |||||
| Total interest and dividend income | $ | 32,533 | $ | 26,064 | $ | 24,666 | $ | 24,735 | $ | 25,784 |
| Total interest expense | 2,094 | 1,796 | 1,734 | 1,412 | 1,351 | |||||
| Net interest income | 30,439 | 24,268 | 22,932 | 23,323 | 24,433 | |||||
| Provision for loan losses | 300 | 400 | 300 | — | — | |||||
| Noninterest income | 5,734 | 5,635 | 7,643 | 6,811 | 6,426 | |||||
| Noninterest expense | 22,555 | 20,379 | 20,258 | 16,963 | 19,251 | |||||
| Income before taxes | 13,318 | 9,124 | 10,017 | 13,171 | 11,608 | |||||
| Income tax expense | 2,206 | 1,423 | 1,551 | 2,189 | 1,966 | |||||
| Net income | $ | 11,112 | $ | 7,701 | $ | 8,466 | $ | 10,982 | $ | 9,642 |
| Per share data | ||||||||||
| Earnings per common share | ||||||||||
| Basic | ||||||||||
| Net income | $ | 11,112 | $ | 7,701 | $ | 8,466 | $ | 10,982 | $ | 9,642 |
| Less allocation of earnings and dividends to participating securities | 52 | 39 | 32 | 51 | 46 | |||||
| Net income available to common shareholders - basic | $ | 11,060 | $ | 7,662 | $ | 8,434 | $ | 10,931 | $ | 9,596 |
| Weighted average common shares outstanding | 15,394,898 | 14,615,154 | 14,909,192 | 15,009,376 | 15,168,233 | |||||
| Less average participating securities | 71,604 | 74,286 | 55,905 | 70,349 | 72,071 | |||||
| Weighted average number of shares outstanding used to calculate basic earnings per share | 15,323,294 | 14,540,868 | 14,853,287 | 14,939,027 | 15,096,162 | |||||
| Earnings per common share | ||||||||||
| Basic | $ | 0.72 | $ | 0.53 | $ | 0.57 | $ | 0.73 | $ | 0.64 |
| Diluted | 0.72 | 0.53 | 0.57 | 0.73 | 0.64 | |||||
| Common shares dividend paid | $ | 2,158 | $ | 2,042 | $ | 2,091 | $ | 2,104 | $ | 2,140 |
| Dividends paid per common share | 0.14 | 0.14 | 0.14 | 0.14 | 0.14 |
18
Supplemental Financial Information
(Unaudited - dollars in thousands except share data)
| Three Months Ended | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Asset quality | September<br>2022 | June<br>2022 | March<br>2022 | December 31,<br>2021 | September 30,<br>2021 | ||||||||||
| Allowance for loan losses, beginning of period | $ | 27,435 | $ | 27,033 | $ | 26,641 | $ | 26,568 | $ | 26,197 | |||||
| Charge-offs | (74 | ) | (60 | ) | (30 | ) | (11 | ) | (77 | ) | |||||
| Recoveries | 112 | 62 | 122 | 84 | 448 | ||||||||||
| Provision | 300 | 400 | 300 | — | — | ||||||||||
| Allowance for loan losses, end of period | $ | 27,773 | $ | 27,435 | $ | 27,033 | $ | 26,641 | $ | 26,568 | |||||
| Ratios | |||||||||||||||
| Allowance to total loans | 1.19 | % | 1.33 | % | 1.34 | % | 1.33 | % | 1.33 | % | |||||
| Allowance to nonperforming assets | 476.24 | % | 572.78 | % | 501.50 | % | 496.10 | % | 501.01 | % | |||||
| Allowance to nonperforming loans | 476.24 | % | 572.78 | % | 501.50 | % | 496.10 | % | 503.50 | % | |||||
| Nonperforming assets | |||||||||||||||
| Nonperforming loans | $ | 5,832 | $ | 4,790 | $ | 5,390 | $ | 5,370 | $ | 5,277 | |||||
| Other real estate owned | — | — | — | — | 26 | ||||||||||
| Total nonperforming assets | $ | 5,832 | $ | 4,790 | $ | 5,390 | $ | 5,370 | $ | 5,303 | |||||
| Capital and liquidity | |||||||||||||||
| Tier 1 leverage ratio | 9.32 | % | 9.87 | % | 9.50 | % | 10.21 | % | 10.01 | % | |||||
| Tier 1 risk-based capital ratio | 11.62 | % | 13.63 | % | 14.02 | % | 14.35 | % | 14.18 | % | |||||
| Total risk-based capital ratio | 15.62 | % | 18.24 | % | 18.74 | % | 19.17 | % | 15.43 | % | |||||
| Tangible common equity ratio ^(1)^ | 6.05 | % | 7.38 | % | 7.85 | % | 9.25 | % | 9.20 | % | |||||
| (1) | See reconciliation of non-GAAP measures at the end of this press<br>release. | ||||||||||||||
| --- | --- |
19
Reconciliation of Non-GAAP Financial Measures
(Unaudited - dollars in thousands except share data)
| Three Months Ended | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30,<br>2022 | June 30, 2022 | March 31,<br>2022 | December 31,<br>2021 | September 30,<br>2021 | |||||||||||
| Tangible Common Equity | |||||||||||||||
| Total Shareholder’s Equity - GAAP | $ | 302,602 | $ | 302,062 | $ | 327,692 | $ | 355,212 | $ | 348,450 | |||||
| Less: Goodwill and intangible assets | 113,206 | 84,021 | 84,251 | 84,432 | 84,589 | ||||||||||
| Tangible common equity (Non-GAAP) | $ | 189,396 | $ | 218,041 | $ | 243,441 | $ | 270,780 | $ | 263,861 | |||||
| Total Shares Outstanding | 15,235,545 | 14,537,433 | 14,797,232 | 14,954,200 | 15,029,972 | ||||||||||
| Tangible book value per share | $ | 12.43 | $ | 15.00 | $ | 16.45 | $ | 18.11 | $ | 17.56 | |||||
| Tangible Assets | |||||||||||||||
| Total Assets - GAAP | $ | 3,241,719 | $ | 3,039,099 | $ | 3,184,357 | $ | 3,011,983 | $ | 2,952,236 | |||||
| Less: Goodwill and intangible assets | 113,206 | 84,021 | 84,251 | 84,432 | 84,589 | ||||||||||
| Tangible assets (Non-GAAP) | $ | 3,128,513 | $ | 2,955,078 | $ | 3,100,106 | $ | 2,927,551 | $ | 2,867,647 | |||||
| Tangible common equity to tangible assets | 6.05 | % | 7.38 | % | 7.85 | % | 9.25 | % | 9.20 | % |
20