Civista Bancshares, Inc. Announces First-Quarter 2026 Financial Results of $0.72 per Common Share, up $0.06 per Common Share from First-Quarter 2025

Civista Bancshares, Inc. Announces First-Quarter 2026 Financial Results of $0.72 per Common Share, up $0.06 per Common Share from First-Quarter 2025 , /PRNewswire/ -- Civista Bancshares, Inc. (NASDAQ:CIVB) ("Civista") today reported net income of $15.0 million, or $0.72 per common share, for the quarter ended March 31, 2026. The results of the periods reflect the inclusion of The Farmers Savings Bank ("FSB") merger since November 7, 2025. Net income, for the first-quarter of 2026 of $15.0 million, a $4.8 million or 47% increase compared to $10.2 million for the first-quarter 2025, and a $2.7 million or 22% increase compared to $12.3 million for the fourth-quarter 2025.Diluted earnings per common share of $0.72, for the first quarter of 2026, a $0.06 or 9% increase compared to $0.66 per diluted share, for the first quarter of 2025, and $0.11 or 18% increase compared to $0.61 per diluted share, for the fourth quarter of 2025.First-quarter 2026 results include non-recurring, acquisition-related adjustments associated with the merger of FSB that negatively impacted net income by approximately $0.4 million on a pre-tax and after-tax basis, or $0.02 per common share.Net interest margin (tax‑equivalent) expanded to 3.85% during the first quarter of 2026, increasing 34 basis points year‑over‑year and 16 basis points sequentially, reflecting lower funding costs and disciplined balance‑sheet management.Cost of funds of 196 basis points for the first-quarter of 2026, 35 basis points lower than the 231 basis points cost of funds for the first-quarter of 2025, and 12 basis points lower than the 208 basis points in fourth-quarter 2025.Cost of deposits of 181 basis points for the first-quarter of 2026, down 19 basis points compared to 200 basis points in the first-quarter of 2025, and 11 basis points lower than the 192 basis points in the fourth-quarter of 2025.Efficiency ratio for the first quarter of 2026 was 60.1%, compared to 64.9% for the first quarter of 2025.Total deposits increased $35.4 million, or 1.0%, in the first quarter of 2026 compared to the fourth quarter of 2025.Return on Assets of 1.41%, compared to 1.00% for the first quarter of 2025 and 1.14% for the fourth quarter of 2025. CEO Commentary: "Civista reported a solid start to 2026, with first‑quarter net income of $15.0 million, or $0.72 per diluted share," said Dennis Shaffer, President and Chief Executive Officer of Civista Bancshares, Inc. "Results for the quarter reflected continued expansion in net interest margin, disciplined expense management, and stable credit performance, while we proactively managed the balance sheet in a changing operating environment." "During the first quarter, we continued to optimize our funding mix by reducing higher‑cost sources, including brokered deposits and short‑term FHLB advances, while growing core deposits," Shaffer said. "These actions contributed to lower funding costs and further strengthened our liquidity profile." "We also successfully completed the integration and system conversion of The Farmers Savings Bank during the quarter," Shaffer added. "The conversion was executed smoothly and on schedule, reflecting our disciplined approach to integration and our commitment to minimizing disruption for customers and employees." "As we move forward, we remain focused on disciplined growth, prudent risk management, and delivering consistent value for shareholders," Shaffer concluded. "Our community‑banking model and diversified earnings profile position Civista well as we navigate the current economic environment and continue to support the communities we serve." Results of Operations: For the three-month periods ended March 31, 2026, March 31, 2025 and December 31, 2025. The results of the periods reflect the inclusion of FSB merger since November 7, 2025. First-Quarter 2026 Highlights Net income of $15.0 million, a $4.8 million or 47% increase compared to $10.2 million for the first quarter 2025, and a $2.7 million or 22% increase compared to the $12.3 million for the fourth quarter of 2025.Diluted earnings per common share of $0.72, for the first quarter of 2026, a $0.06 or 9% increase compared to $0.66 per diluted share, for the first quarter of 2025, and $0.11 or 18% increase compared to $0.61 per diluted share, for the fourth quarter of 2025.Successfully completed the core system conversion and operational integration of FSB, following its acquisition in the fourth quarter of 2025.The first-quarter of 2026 included non-recurring adjustments related to the merger of FSB that closed in the fourth quarter of 2025 that negatively impacted net income by approximately $0.4 million on a pre-tax and after-tax basis, or $0.02 per common share.Net interest margin (tax‑equivalent) expanded to 3.85% during the first quarter of 2026, increasing 34 basis points year‑over‑year and 16 basis points sequentially, reflecting lower funding costs and disciplined balance‑sheet management.Net interest income of $37.8 million, up $5.1 million or 15.4% compared to the first quarter of 2025, and up $1.4 million or 3.8% compared to the fourth quarter of 2025.Total deposits increased $35.4 million, or 1.0%, in the first quarter of 2026 compared to the fourth quarter of 2025.Cost of deposits of 181 basis points for the first-quarter of 2026, down 19 basis points compared to 200 basis points in the first-quarter of 2025, and 11 basis points lower than the 192 basis points in the fourth-quarter of 2025.Cost of funds of 196 basis points for the first-quarter of 2026, 35 basis points lower than the 231 basis points cost of funds for the first-quarter of 2025, and 12 basis points lower than the 208 basis points in fourth-quarter 2025.Efficiency ratio for the first quarter of 2026 was 60.1%, compared to 64.9% for the first quarter of 2025.Return on average assets improved to 1.41%, compared to 1.00% for the first quarter of 2025 and 1.14% for the fourth quarter of 2025.Return on average equity increased to 10.97%, compared to 10.39% for the first quarter of 2025 and 9.26% for the fourth quarter of 2025.Allowance for credit losses on loans / total loans of 1.26%.Tangible book value per share was $19.70 at March 31, 2026.Declared a quarterly cash dividend of $0.18 per share, an increase from $0.17 per share in the prior quarter.Based on the March 31, 2026 closing share price of $22.79, the $0.18 quarterly dividend represents an annualized yield of 3.16% and a payout ratio of 24.91%. Assets Total assets at March 31, 2026, were $4.3 billion, a decrease of $38.1 million, or 0.9% from December 31, 2025. Loan and lease balances decreased $40.4 million, or 1.2% since December 31, 2025 reflecting seasonal construction runoff and loan payoffs.Real Estate Construction loans decreased $30.9 million since December 31, 2025, mainly due to seasonal construction patterns that primarily sees its lowest activity in the first quarter combined with projects moving from temporary to permanent financing.Commercial Real Estate Non-Owner Occupied decreased $6.2 million since December 31, 2025 primarily related to loan payoffs.Residential Real Estate decreased $1.0 million since December 31, 2025 reflecting stable demand and portfolio runoff offsetting new originations. Deposits & Borrowings Total deposits at March 31, 2026, were $3.5 billion, an increase of $35.4 million, or 1.0% from December 31, 2025.  Interest-bearing demand deposits increased $18.9 million from December 31, 2025, primarily due to increases of $18.6 million and $5.0 million in interest-bearing public funds and business interest-bearing demand deposits, respectively, slightly offset by decreases of $4.6 million and $2.8 million in jumbo demand deposits and retail interest-bearing demand deposits, respectively.Savings and money markets increased $56.7 million from December 31, 2025, primarily due to increases of $27.0 million, $13.3 million, $8.8 million, $6.1 million, and $4.2 million in business money market deposits, ICS money market deposits, public fund money market, retail money market deposits, and statement savings, respectively. Time deposits decreased $16.9 million from December 31, 2025, primarily due a decrease of $15.4 million in jumbo CDs.Brokered deposits totaled $377.1 million at March 31, 2026, which included brokered certificate of deposits of $375.0 million and brokered money markets of $2.1 million. Brokered deposits decreased $25.0 million from December 31, 2025, strategically reducing the balances of brokered deposits. FHLB short-term advances totaled $100.0 million on March 31, 2026, down $75.0 million from December 31, 2025. Net Interest Income and Net Interest Margin Net interest income increased $5.1 million, or 15.4%, for the first quarter of 2026, compared to the same period last year.  Interest income increased $2.1 million year over year, primarily reflecting growth in average interest‑earning assets, partially offset by a modest decline in asset yields due to a decrease in interest rates.Interest expense decreased $3.0 million year over year, as lower borrowing costs from reduced short‑term FHLB advances and improved time deposit pricing more than offset the impact of continued growth in interest‑bearing deposit balances.Net interest margin increased 34 basis points to 3.85% for the first quarter of 2026, compared to 3.51% for the same period last year, reflecting disciplined deposit pricing, a reduced reliance on higher‑cost wholesale funding, and favorable repricing dynamics, partially offset by pressure from changes in asset mix. Credit Provision for credit losses (including provision for unfunded commitments) decreased $2.2 million benefiting from a credit to the provision for credit losses of $0.6 million for the first quarter of 2026 compared to an expense of $1.6 million for the same period last year. Civista recorded net charge-offs of $0.7 million for the first quarter of 2026 compared to net charge-offs of $0.6 million for the same period last year.The allowance for credit losses to loans ratio was 1.26% at March 31, 2026, compared to 1.30% at March 31, 2025, and 1.28% at December 31, 2025.The allowance for credit losses was $40.5 million at March 31, 2026, compared to $40.3 million at March 31, 2025, and $42.0 million at December 31, 2025.Non-performing assets at March 31, 2026, were $30.2 million, a decrease of $1.0 million or 3.3%, from December 31, 2025. The non-performing assets to assets ratio was 0.70% and 0.72% at March 31, 2026 and December 31, 2025, respectively. The allowance for credit losses to non-performing loans increased slightly to 134.8% at March 31, 2026, from 134.3% at December 31, 2025.  Non-interest Income Non-interest income for the first quarter of 2026 totaled $9.4 million, an increase of $1.6 million or 20.0%, when compared to the same period last year.  Service charges increased $0.2 million for the first quarter of 2026, compared to the same period last year, primarily from higher retail service charges, including retail overdraft fees.Net gain on sale of loans increased $1.0 million for the first quarter of 2026, compared to the same period last year, due to the changes in the interest rate environment.Lease revenue and residual income decreased $0.3 million for the first quarter of 2026 compared to the same period last year, mainly due to a decrease in operating lease originations in the first quarter of 2026 as the Company continues to shift towards finance leases.Other income increased $0.4 million for the first quarter of 2026 compared to the same period last year. Income from the Company's captive insurance subsidiary, CIVB Risk Management, recorded $0.5 million of income in the first quarter of 2026 related to the closure of three claims without payment, resulting in a reduction of ceded reserves. Non-interest Expense Non-interest expense for the first quarter of 2026 totaled $29.9 million, an increase of $2.7 million or 10.1%, when compared to the same period last year. In the first quarter of 2026, noninterest expense was increased by $0.4 million of non-recurring adjustments related to acquisition expenses resulting from the merger with FSB that closed in November 2025. These expenses are recorded in other noninterest expenses. Compensation expense increased $2.2 million for the first quarter of 2026 compared to the same period last year, primarily due to increases in salaries, commissions, and medical expenses associated from operating with higher full-time equivalent (FTE) employees year-over-year. The quarter-to-date average number of FTE employees was 535 at March 31, 2026, compared with an average number of 520 for the same period in 2025. Other expenses increased $0.5 million for the first quarter of 2026 compared to the same period last year, mainly due to the aforementioned acquisition-related expenses.The efficiency ratio was 60.1% for the quarter ended March 31, 2026, compared to 64.9% for the same period last year. The change in the efficiency ratio is primarily due to a 10.1% increase in non-interest expenses, mostly offset by a 15.4% increase in net interest income and a 20.0% increase in non-interest income. Taxes Civista's effective income tax rate for the first quarter of 2026 was 16.8% compared to 14.8% for the same period last year.  Capital Total shareholders' equity at March 31, 2026, totaled $552.2 million, an increase of $8.8 million from December 31, 2025. This resulted from an increase of $11.3 million in retained earnings, partially offset by an increase in accumulated other comprehensive loss of $2.9 million resulting from the change in the unrealized loss on available-for-sale securities portfolio. Civista did not repurchase any shares in the first quarter of 2026 as the current repurchase plan is set to expire in April 2027. For the three months ended March 31, 2026, Civista liquidated 14,504 shares held by employees, at an average price of $21.94 per share, to satisfy tax obligations stemming from vesting of restricted shares. 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 2026 at 1:00 p.m. ET on Wednesday, April 22, 2026. 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 800-836-8184 and ask to be joined into the Civista Bancshares, Inc. first quarter 2026 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). About Civista Bancshares Civista Bancshares, Inc., is a $4.4 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 44 locations across Ohio, Southeastern Indiana and Northern Kentucky. Civista Bank also offers commercial equipment leasing services for businesses nationwide through its Civista Leasing and Finance Division. Civista Bancshares' common shares are traded on the NASDAQ Capital Market under the symbol "CIVB". Learn more at 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's 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, 2025, 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. Non-GAAP Financial Measures This press release and related materials may contain references to measures which are not defined in generally accepted accounting principles ("GAAP"). These financial measures have been included as they provide meaningful supplemental information to assess trends in the Corporation's results of operations. Certain non-GAAP financial measures discussed earlier in this release, including efficiency ratio, net interest margin, tangible book value per share, and related ratios, are identified in the accompanying financial tables. Management believes these measures are meaningful because they reflect adjustments commonly made by management, investors, regulators, and analysts to evaluate the adequacy of earnings per common share, provide a greater understanding of ongoing operations and enhance comparability of results with prior periods. Average Balance Analysis (Unaudited - Dollars in thousands) Three Months Ended March 31, 2026 2025 Average Yield/ Average Yield/ Assets: balance Interest rate * balance Interest rate * Interest-earning assets: Loans ** $ 3,252,342 $ 49,230 6.14 % $ 3,099,440 47,646 6.23 % Taxable securities *** 432,760 3,954 3.49 % 396,893 3,555 3.31 % Non-taxable securities *** 285,277 2,303 3.94 % 286,481 2,340 3.91 % Interest-bearing deposits in other banks 32,765 322 3.91 % 18,895 192 4.13 % Total interest-earning assets *** $ 4,003,144 $ 55,809 5.66 % $ 3,801,709 $ 53,733 5.71 % Noninterest-earning assets: Cash and due from financial institutions 39,130 43,203 Premises and equipment, net 39,989 46,404 Accrued interest receivable 14,196 13,567 Intangible assets 143,272 133,268 Bank owned life insurance 63,287 62,916 Other assets 51,682 58,588 Less allowance for loan losses (41,663) (39,956) Total Assets $ 4,313,037 $ 4,119,699 Liabilities and Shareholders' Equity: Interest-bearing liabilities: Demand and savings $ 1,655,416 $ 5,431 1.33 % $ 1,578,949 $ 5,729 1.47 % Time 1,110,357 10,022 3.66 % 959,611 9,987 4.22 % Short-term FHLB borrowings 148,656 1,348 3.68 % 355,589 3,929 4.48 % Long-term FHLB borrowings 781 5 2.73 % 1,408 9 2.56 % Other borrowings 3,913 72 7.50 % 6,430 145 9.14 % Subordinated debentures 104,249 1,108 4.31 % 104,103 1,161 4.52 % Total interest-bearing liabilities $ 3,023,372 $ 17,986 2.41 % $ 3,006,090 $ 20,960 2.83 % Non-interest-bearing deposits 695,429 670,774 Other liabilities 40,296 45,814 Shareholders' equity 553,940 397,021 Total Liabilities and Shareholders' Equity $ 4,313,037 $ 4,119,699 Net interest income and interest rate spread $ 37,823 3.25 % $ 32,773 2.88 % Net interest margin *** 3.85 % 3.51 % * - Average yields are presented on a tax equivalent basis. The tax equivalent effect associated with loans and investments, included in the yields above, was $612 thousand and $622 thousand for the periods ended March 31, 2026 and 2025, 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 $41.3 million and $59.2 million, respectively. These adjustments were also made when calculating the yield on earning assets and the margin. Non-interest income (unaudited - dollars in thousands) Three months ended March 31, 2026 2025 $ Change % Change Service charges $ 1,714 $ 1,524 $ 190 12.5 % Net gain (loss) on equity securities 33 (29) 62 213.8 % Net gain on sale of loans and leases 1,605 604 1,001 165.7 % ATM/Interchange fees 1,386 1,326 60 4.5 % Wealth management fees 1,433 1,340 93 6.9 % Lease revenue and residual income 1,630 1,896 (266) -14.0 % Bank owned life insurance 390 387 3 0.8 % Swap fees 56 72 (16) -22.2 % Other 1,184 740 444 60.0 % Total non-interest income $ 9,431 $ 7,860 $ 1,571 20.0 % Non-interest expense (unaudited - dollars in thousands) Three months ended March 31, 2026 2025 $ Change % Change Compensation expense $ 16,229 $ 14,043 $ 2,186 15.6 % Net occupancy expense 1,623 1,634 (11) -0.7 % Contracted data processing 730 567 163 28.7 % FDIC assessment 423 873 (450) -51.5 % State franchise tax 554 526 28 5.3 % Professional services 1,585 2,090 (505) -24.2 % Equipment expense 2,089 2,103 (14) -0.7 % ATM/Interchange expense 732 580 152 26.2 % Marketing 478 296 182 61.5 % Amortization of core deposit intangible 696 332 364 109.6 % Software maintenance expense 1,475 1,277 198 15.5 % Other 3,259 2,805 454 16.2 % Total non-interest expense $ 29,873 $ 27,126 $ 2,747 10.1 % End of period loan and lease balances (unaudited - dollars in thousands) March 31, December 31, 2026 2025 $ Change % Change Commercial and Agriculture $ 310,400 $ 308,692 $ 1,708 0.6 % Commercial Real Estate: Owner Occupied 390,786 385,547 5,239 1.4 % Non-owner Occupied 1,232,781 1,239,017 (6,236) -0.5 % Residential Real Estate 943,425 944,328 (903) -0.1 % Real Estate Construction 254,254 285,137 (30,883) -10.8 % Farm Real Estate 32,700 37,775 (5,075) -13.4 % Lease financing receivable 32,693 35,103 (2,410) -6.9 % Consumer and Other 32,628 34,447 (1,819) -5.3 % Total Loans $ 3,229,667 $ 3,270,046 $ (40,379) -1.2 % End of period deposit balances (unaudited - dollars in thousands) March 31, December 31, 2026 2025 $ Change % Change Noninterest-bearing demand $ 703,778 $ 702,032 $ 1,746 0.2 % Interest-bearing demand 419,295 400,403 18,892 4.7 % Savings and money market 1,291,253 1,234,593 56,660 4.6 % Time deposits 710,423 727,294 (16,871) -2.3 % Brokered deposits 377,141 402,142 (25,001) -6.2 % Total Deposits $ 3,501,890 $ 3,466,464 $ 35,426 1.0 % Allowance for Credit Losses (dollars in thousands) Three months ended March 31, 2026 2025 Beginning of period $ 42,020 $ 39,669 Charge-offs (806) (976) Recoveries 90 343 Provision (768) 1,248 End of period $ 40,536 $ 40,284 Allowance for Unfunded Commitments (dollars in thousands) Three months ended March 31, 2026 2025 Beginning of period $ 3,236 $ 3,380 Provision 139 319 End of period $ 3,375 $ 3,699 (dollars in thousands) March 31, December 31, 2026 2025 Non-accrual loans $ 29,400 $ 30,834 Restructured loans, accruing 538 14 90+ Days Past Due, Still Accruing 229 462 Total non-performing loans 30,167 31,310 Other Real Estate Owned - - Total non-performing assets $ 30,167 $ 31,310 Civista Bancshares, Inc. Financial Highlights (Unaudited, dollars in thousands, except share and per share amounts) Consolidated Condensed Statement of Operations Three Months Ended March 31, 2026 2025 Interest income $ 55,809 $ 53,733 Interest expense 17,986 20,960 Net interest income 37,823 32,773 Provision for credit losses (768) 1,248 Provision for unfunded commitments 139 319 Net interest income after provision 38,452 31,206 Non-interest income 9,431 7,860 Non-interest expense 29,873 27,126 Income before taxes 18,010 11,940 Income tax expense 3,021 1,772 Net income 14,989 10,168 Net income available to common shareholders $ 14,989 $ 10,168 Dividends paid per common share $ 0.18 $ 0.17 Earnings per common share Basic Net income $ 14,989 $ 10,168 Less allocation of earnings and dividends to participating securities 28 44 Net income available to common shareholders - basic $ 14,961 $ 10,124 Weighted average common shares outstanding 20,745,499 15,488,813 Less average participating securities 39,169 66,711 Weighted average number of shares outstanding used to calculate basic earnings per share 20,706,330 15,422,102 Earnings per common share Basic $ 0.72 $ 0.66 Diluted $ 0.72 0.66 Selected financial ratios: Return on average assets 1.41 % 1.00 % Return on average equity 10.97 % 10.39 % Dividend payout ratio 24.91 % 25.90 % Net interest margin (tax equivalent) 3.85 % 3.51 % Effective tax rate 16.77 % 14.84 % Selected Balance Sheet Items (Dollars in thousands, except share and per share amounts) March 31, December 31, 2026 2025 (unaudited) (unaudited) Cash and due from financial institutions $ 83,525 $ 77,320 Investment in time deposits 2,880 1,165 Investment securities 682,462 684,600 Loans held for sale 6,940 7,180 Loans 3,229,667 3,270,046 Less: allowance for credit losses (40,536) (42,020) Net loans 3,189,131 3,228,026 Other securities 25,144 25,942 Premises and equipment, net 39,055 40,611 Goodwill and other intangibles 142,774 143,538 Bank owned life insurance 63,543 63,153 Other assets 62,868 64,918 Total assets $ 4,298,322 $ 4,336,453 Total deposits $ 3,501,890 $ 3,466,464 Short-term Federal Home Loan Bank advances 100,000 175,000 Long-term Federal Home Loan Bank advances 739 855 Subordinated debentures 104,276 104,234 Other borrowings 3,594 4,090 Accrued expenses and other liabilities 35,580 42,336 Total liabilities 3,746,079 3,792,979 Common shares 420,488 419,769 Retained earnings 251,041 239,784 Treasury shares (76,082) (75,764) Accumulated other comprehensive loss (43,204) (40,315) Total shareholders' equity 552,243 543,474 Total liabilities and shareholders' equity $ 4,298,322 $ 4,336,453 March 31, December 31, 2026 2025 (unaudited) (unaudited) Shares outstanding at period end 20,783,348 20,746,474 Book value per share $ 26.57 $ 26.20 Equity to asset ratio 12.85 % 12.53 % Selected asset quality ratios: Allowance for credit losses to total loans 1.26 % 1.28 % Non-performing assets to total assets 0.70 % 0.72 % Allowance for credit losses to non-performing loans 134.37 % 134.21 % Non-performing asset analysis Nonaccrual loans $ 29,400 $ 30,834 Restructured loans 538 14 Other real estate owned - - 90+ Days Past Due, Still Accruing 229 462 Total $ 30,167 $ 31,310 Supplemental Financial Information (Unaudited - dollars in thousands except share data) March 31, December 31, September 30, June 30, March 31, End of Period Balances 2026 2025 2025 2025 2025 Assets Cash and due from banks $ 83,525 $ 77,320 $ 62,766 $ 73,858 $ 90,456 Investment in time deposits 2,880 1,165 735 715 960 Investment securities 682,462 684,600 657,189 645,228 648,537 Loans held for sale 6,940 7,180 8,012 10,733 4,324 Loans and leases 3,229,667 3,270,046 3,095,994 3,151,124 3,104,036 Allowance for credit losses (40,536) (42,020) (40,254) (40,455) (40,284) Net Loans 3,189,131 3,228,026 3,055,740 3,110,669 3,063,752 Other securities 25,144 25,942 27,901 36,195 32,592 Premises and equipment, net 39,055 40,611 40,910 42,922 45,107 Goodwill and other intangibles 142,774 143,538 132,276 132,631 133,026 Bank owned life insurance 63,543 63,153 62,756 63,555 63,170 Other assets 62,868 64,918 65,049 69,363 64,793 Total Assets $ 4,298,322 $ 4,336,453 $ 4,113,334 $ 4,185,869 $ 4,146,717 Liabilities Total deposits $ 3,501,890 $ 3,466,464 $ 3,230,463 $ 3,196,207 $ 3,238,888 Federal Home Loan Bank advances - short term 100,000 175,000 232,000 433,500 360,000 Federal Home Loan Bank advances - long term 739 855 970 1,103 1,355 Subordinated debentures 104,276 104,234 104,213 104,172 104,130 Other borrowings 3,594 4,090 4,699 5,379 6,140 Accrued expenses and other liabilities 35,580 42,336 41,961 41,371 38,770 Total liabilities 3,746,079 3,792,979 3,614,306 3,781,732 3,749,283 Shareholders' Equity Common shares 420,488 419,769 388,458 312,589 312,192 Retained earnings 251,041 239,784 230,798 221,321 212,944 Treasury shares (76,082) (75,764) (75,760) (75,753) (75,753) Accumulated other comprehensive loss (43,204) (40,315) (44,468) (54,020) (51,949) Total shareholders' equity 552,243 543,474 499,028 404,137 397,434 Total Liabilities and Shareholders' Equity $ 4,298,322 $ 4,336,453 $ 4,113,334 $ 4,185,869 $ 4,146,717 Shares outstanding at period end 20,783,348 20,746,474 19,312,726 15,529,342 15,519,072 Book value per share $ 26.57 $ 26.20 $ 25.84 $ 26.02 $ 25.61 Equity to asset ratio 12.85 % 12.53 % 12.13 % 9.65 % 9.58 % March 31, December 31, September 30, June 30, March 31, 2026 2025 2025 2025 2025 Selected asset quality ratios: Allowance for credit losses to total loans 1.26 % 1.28 % 1.30 % 1.28 % 1.30 % Non-performing assets to total assets 0.70 % 0.72 % 0.55 % 0.55 % 0.75 % Allowance for credit losses to non-performing loans 134.37 % 134.21 % 176.52 % 176.11 % 129.99 % Non-performing asset analysis Non-accrual loans $ 29,400 $ 30,834 $ 22,615 $ 22,742 $ 30,989 Restructured loans 538 14 12 7 - 90+ Days Past Due, Still Accruing 229 462 177 223 146 Other real estate owned - - - 209 209 Total $ 30,167 $ 31,310 $ 22,804 $ 23,181 $ 31,344 Supplemental Financial Information (Unaudited - dollars in thousands except share data) March 31, December 31, September 30, June 30, March 31, Quarterly Average Balances 2026 2025 2025 2025 2025 Assets: Earning assets $ 4,003,144 $ 3,939,580 $ 3,829,484 $ 3,841,369 $ 3,801,709 Securities 718,037 694,263 676,938 682,035 683,374 Loans 3,252,342 3,197,327 3,128,033 3,136,091 3,099,440 Liabilities and Shareholders' Equity Total deposits $ 3,461,202 $ 3,424,018 $ 3,237,025 $ 3,190,592 $ 3,209,277 Interest-bearing deposits 2,765,773 2,717,751 2,574,153 2,538,500 2,538,561 Other interest-bearing liabilities 257,599 256,899 383,305 523,824 461,100 Total shareholders' equity 553,940 525,673 472,993 400,915 397,021 Supplemental Financial Information (Unaudited - dollars in thousands) March 31, December 31, September 30, June 30, March 31, End of period loan and lease balances 2026 2025 2025 2025 2025 Commercial and Agriculture $ 310,400 $ 308,692 $ 302,407 $ 338,598 $ 330,627 Commercial Real Estate: Owner Occupied 390,786 385,547 384,176 378,248 378,095 Non-owner Occupied 1,232,781 1,239,017 1,216,031 1,263,612 1,246,025 Residential Real Estate 943,425 944,328 842,362 815,408 773,349 Real Estate Construction 254,254 285,137 278,163 277,643 297,589 Farm Real Estate 32,700 37,775 23,713 23,866 22,399 Lease financing receivable 32,693 35,103 38,960 42,758 44,570 Consumer and Other 32,628 34,447 10,182 10,991 11,382 Total Loans $ 3,229,667 $ 3,270,046 $ 3,095,994 $ 3,151,124 $ 3,104,036 Supplemental Financial Information (Unaudited - dollars in thousands) March 31, December 31, September 30, June 30, March 31, End of period deposit balances 2026 2025 2025 2025 2025 Noninterest-bearing demand $ 703,778 $ 702,032 $ 651,934 $ 647,609 $ 648,683 Interest-bearing demand 419,295 400,403 415,620 433,089 467,601 Savings and money market 1,291,253 1,234,593 1,129,985 1,100,660 1,146,480 Time deposits 710,423 727,294 601,757 560,702 515,910 Brokered deposits 377,141 402,142 431,167 454,147 460,214 Total Deposits $ 3,501,890 $ 3,466,464 $ 3,230,463 $ 3,196,207 $ 3,238,888 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 2026 2025 2025 2025 2025 Total interest and dividend income $ 55,809 $ 55,741 $ 55,240 $ 56,271 $ 53,733 Total interest expense 17,986 19,290 20,695 21,457 20,960 Net interest income 37,823 36,451 34,545 34,814 32,773 Provision for credit losses (768) 724 378 1,171 1,248 Provision for unfunded commitments 139 (139) (178) (146) 319 Non-interest income 9,431 9,884 9,633 6,589 7,860 Non-interest expense 29,873 31,003 28,327 27,482 27,126 Income before taxes 18,010 14,747 15,651 12,896 11,940 Income tax expense 3,021 2,480 2,891 1,881 1,772 Net income $ 14,989 $ 12,267 $ 12,760 $ 11,015 $ 10,168 Net income available to common shareholders $ 14,989 $ 12,267 $ 12,760 $ 11,015 $ 10,168 Per share data Earnings per common share Basic Net income $ 14,989 $ 12,267 $ 12,760 $ 11,015 $ 10,168 Less allocation of earnings and dividends to participating securities 28 48 61 45 44 Net income available to common shareholders - basic $ 14,961 $ 12,219 $ 12,699 $ 10,970 $ 10,124 Weighted average common shares outstanding 20,745,499 20,185,285 18,767,307 15,524,490 15,488,813 Less average participating securities 39,169 90,281 91,743 96,692 66,711 Weighted average number of shares outstanding used to calculate basic earnings per share 20,706,330 20,095,004 18,675,564 15,427,798 15,422,102 Earnings per common share Basic $ 0.72 $ 0.61 $ 0.68 $ 0.71 $ 0.66 Diluted $ 0.72 $ 0.61 $ 0.68 $ 0.71 $ 0.66 Common shares dividend paid $ 3,732 $ 3,283 $ 3,283 $ 2,638 $ 2,636 Dividends paid per common share 0.18 0.17 0.17 0.17 0.17 Three Months Ended March 31, December 31, September 30, June 30, March 31, Selected financial ratios 2026 2025 2025 2025 2025 Return on average assets 1.41 % 1.14 % 1.22 % 1.06 % 1.00 % Return on average equity 10.97 % 9.26 % 10.70 % 11.02 % 10.39 % Dividend payout ratio 24.91 % 27.97 % 25.00 % 23.96 % 25.90 % Net interest margin (tax equivalent) 3.85 % 3.69 % 3.58 % 3.64 % 3.51 % Effective tax rate 16.77 % 16.82 % 18.47 % 14.59 % 14.84 % Supplemental Financial Information (Unaudited - dollars in thousands) Three Months Ended March 31, December 31, September 30, June 30, March 31, Non-interest income 2026 2025 2025 2025 2025 Service charges $ 1,714 $ 1,706 $ 1,667 $ 1,564 $ 1,524 Net gain (loss) on equity securities 33 120 255 (74) (29) Net gain on sale of loans and leases 1,605 1,594 1,450 841 604 ATM/Interchange fees 1,386 1,722 1,435 1,418 1,326 Wealth management fees 1,433 1,473 1,402 1,325 1,340 Lease revenue and residual income 1,630 1,518 1,934 525 1,896 Bank owned life insurance 390 397 666 386 387 Swap fees 56 150 - 53 72 Other 1,184 1,204 824 551 740 Total non-interest income $ 9,431 $ 9,884 $ 9,633 $ 6,589 $ 7,860 Supplemental Financial Information (Unaudited - dollars in thousands) Three Months Ended March 31, December 31, September 30, June 30, March 31, Non-interest expense 2026 2025 2025 2025 2025 Compensation expense $ 16,229 $ 14,526 $ 15,161 $ 15,011 $ 14,043 Net occupancy expense 1,623 1,410 1,466 1,419 1,634 Contracted data processing 730 672 559 536 567 FDIC assessment 423 493 627 689 873 State franchise tax 554 343 536 634 526 Professional services 1,585 1,467 1,225 1,798 2,090 Equipment expense 2,089 2,032 2,205 1,764 2,103 ATM/Interchange expense 732 710 755 683 580 Marketing 478 410 391 289 296 Amortization of core deposit intangible 696 576 318 338 332 Software maintenance expense 1,475 1,411 1,480 1,294 1,277 Other 3,259 6,953 3,604 3,027 2,805 Total non-interest expense $ 29,873 $ 31,003 $ 28,327 $ 27,482 $ 27,126 Supplemental Financial Information (Unaudited - dollars in thousands except share data) Three Months Ended March 31, December 31, September 30, June 30, March 31, Asset quality 2026 2025 2025 2025 2025 Allowance for credit losses: Beginning of period $ 42,020 $ 40,254 $ 40,455 $ 40,284 $ 39,669 CECL Day 1 Adjustment FSB - 1,960 - - - Charge-offs (806) (1,064) (662) (1,092) (976) Recoveries 90 146 83 92 343 Provision (768) 724 378 1,171 1,248 End of period $ 40,536 $ 42,020 $ 40,254 $ 40,455 $ 40,284 Allowance for unfunded commitments: Beginning of period $ 3,236 $ 3,375 $ 3,553 $ 3,699 $ 3,380 Charge-offs - - - - - Recoveries - - - - - Provision 139 (139) (178) (146) 319 End of period $ 3,375 $ 3,236 $ 3,375 $ 3,553 $ 3,699 Ratios Allowance to total loans 1.26 % 1.28 % 1.30 % 1.28 % 1.30 % Allowance to nonperforming assets 134.37 % 134.29 % 176.52 % 174.52 % 129.12 % Allowance to nonperforming loans 134.37 % 134.29 % 176.52 % 176.11 % 129.99 % Nonperforming assets Non-accrual loans $ 29,400 $ 30,815 $ 22,615 $ 22,742 $ 30,989 Restructured loans 538 14 12 7 - 90+ Days Past Due, Still Accruing 229 461 177 223 - Total non-performing loans 30,167 31,290 22,804 22,972 30,989 Other Real Estate Owned - - - 209 209 Total non-performing assets $ 30,167 $ 31,290 $ 22,804 $ 23,181 $ 31,198 Three Months Ended March 31, December 31, September 30, June 30, March 31, Capital and liquidity 2026 2025 2025 2025 2025 Tier 1 leverage ratio 11.57 % 11.32 % 10.96 % 8.80 % 8.66 % Tier 1 risk-based capital ratio 15.12 % 14.51 % 14.19 % 11.18 % 10.97 % Total risk-based capital ratio 18.67 % 18.02 % 17.80 % 14.73 % 14.53 % Tangible common equity ratio(1) 9.85 % 9.54 % 9.21 % 6.70 % 6.59 % (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) March 31, December 31, September 30, June 30, March 31, 2026 2025 2025 2025 2025 Tangible Common Equity Total Shareholder's Equity - GAAP $ 552,243 $ 543,474 $ 499,028 $ 404,137 $ 397,434 Less: Preferred Equity - - - - - Less: Goodwill and intangible assets 142,774 143,538 132,276 132,631 133,026 Tangible common equity (Non-GAAP) $ 409,469 $ 399,936 $ 366,752 $ 271,506 $ 264,408 Total Shares Outstanding 20,783,348 20,746,474 19,312,726 15,529,342 15,519,072 Tangible book value per share $ 19.70 $ 19.28 $ 18.99 $ 17.48 $ 17.04 Tangible Assets Total Assets - GAAP $ 4,298,322 $ 4,336,453 $ 4,113,334 $ 4,185,869 $ 4,146,717 Less: Goodwill and intangible assets 142,774 143,538 132,276 132,631 133,026 Tangible assets (Non-GAAP) $ 4,155,548 $ 4,192,915 $ 3,981,058 $ 4,053,238 $ 4,013,691 Tangible common equity to tangible assets 9.85 % 9.54 % 9.21 % 6.70 % 6.59 % Reconciliation of Non-GAAP Financial Measures (Unaudited - dollars in thousands except share data) Three Months Ended March 31, Efficiency ratio (non-GAAP): 2026 2025 Noninterest expense (GAAP) $ 29,873 $ 27,126 Less: Amortization of intangible assets expense 696 332 Less: Acquisition related expenses 427 - Noninterest expense (non-GAAP) $ 28,750 $ 26,794 Net interest income (GAAP) $ 37,823 $ 32,773 Plus: Taxable equivalent adjustment 612 622 Noninterest income (GAAP) 9,431 7,860 Less: Net gains (losses) on equity securities 33 (29) Net interest income (FTE) plus non-interest income (non-GAAP) $ 47,833 $ 41,284 Efficiency ratio (non-GAAP) 60.1 % 64.9 % 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, Efficiency ratio (non-GAAP): 2026 2025 2025 2025 2025 Noninterest expense (GAAP) $ 29,873 $ 31,003 $ 28,327 $ 27,482 $ 27,126 Less: Amortization of intangible assets expense 696 576 318 339 332 Less: Acquisition related expenses 427 3,424 664 5 - Noninterest expense (non-GAAP) $ 28,750 $ 27,003 $ 27,345 $ 27,138 $ 26,794 Net interest income (GAAP) $ 37,823 $ 36,451 $ 34,545 $ 34,814 $ 32,773 Plus: Taxable equivalent adjustment 612 620 618 621 622 Noninterest income (GAAP) 9,431 9,884 9,633 6,589 7,860 Less: Net gains (losses) on equity securities 33 120 255 (74) (29) Net interest income (FTE) plus non-interest income (non-GAAP) $ 47,833 $ 46,835 $ 44,541 $ 42,098 $ 41,284 Efficiency ratio (non-GAAP) 60.1 % 57.7 % 61.4 % 64.5 % 64.9 % Three Months Ended March 31, December 31, September 30, June 30, March 31, Net interest margin (non-GAAP): 2026 2025 2025 2025 2025 Net interest income (GAAP) $ 37,823 $ 36,451 $ 34,545 $ 34,814 $ 32,773 Tax-equivalent adjustment 612 620 618 621 622 Net interest income (tax-equivalent) 38,435 37,071 35,163 35,435 33,395 Average earning assets (GAAP) $ 4,003,144 $ 3,939,580 $ 3,829,484 $ 3,841,369 $ 3,801,709 Unrealized loss adjustment 41,288 46,944 62,947 64,110 59,117 Adjusted average earning assets 4,044,432 3,986,524 3,892,431 3,905,479 3,860,826 Net interest margin (Non-GAAP) 3.85 % 3.69 % 3.58 % 3.64 % 3.51 % Supplemental Financial Information Consolidated Condensed Statement of Operations (Unaudited - dollars in thousands except share data) Three Months Ended March 31, 2026 Non-Recurring As Reported Adjustments As Adjusted Interest income $ 55,809 $ - $ 55,809 Interest expense 17,986 - 17,986 Net interest income 37,823 - 37,823 Provision for credit losses (768) - (768) Provision for unfunded commitments 139 - 139 Net interest income after provision 38,452 - 38,452 Non-interest income 9,431 - 9,431 Non-interest expense 29,873 427 29,446 Income before taxes 18,010 (427) 18,437 Income tax expense 3,021 (69) 3,090 Net income $ 14,989 $ (358) $ 15,347 Earnings per common share Basic $ 0.72 $ (0.02) $ 0.74 Diluted $ 0.72 $ (0.02) $ 0.74 Supplemental Financial Information Consolidated Condensed Statement of Operations (Unaudited - dollars in thousands except share data) Three Months Ended As Reported March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 Interest income $ 55,809 $ 55,741 $ 55,240 $ 56,271 Interest expense 17,986 19,290 20,695 21,457 Net interest income 37,823 36,451 34,545 34,814 Provision for credit losses (768) 724 378 1,171 Provision for unfunded commitments 139 (139) (178) (146) Net interest income after provision 38,452 35,866 34,345 33,789 Non-interest income 9,431 9,884 9,633 6,589 Non-interest expense 29,873 31,003 28,327 27,482 Income before taxes 18,010 14,747 15,651 12,896 Income tax expense 3,021 2,480 2,891 1,881 Net income $ 14,989 $ 12,267 $ 12,760 $ 11,015 Earnings per common share Basic $ 0.72 $ 0.61 $ 0.68 $ 0.71 Diluted $ 0.72 $ 0.61 $ 0.68 $ 0.71 Net Interest Margin 3.85 % 3.69 % 3.58 % 3.64 % As Adjusted Interest income $ 55,809 $ 55,741 $ 55,240 $ 54,650 Interest expense 17,986 19,290 20,695 21,457 Net interest income 37,823 36,451 34,545 33,193 Provision for credit losses (768) 724 378 1,171 Provision for unfunded commitments 139 (139) (178) (146) Net interest income after provision 38,452 35,866 34,345 32,168 Non-interest income 9,431 9,884 9,633 7,633 Non-interest expense 29,446 27,579 27,663 27,793 Income before taxes 18,437 18,171 16,315 12,008 Income tax expense 3,090 3,048 3,001 1,750 Net income $ 15,347 $ 15,123 $ 13,314 $ 10,258 Earnings per common share Basic $ 0.74 $ 0.75 $ 0.71 $ 0.66 Diluted $ 0.74 $ 0.75 $ 0.71 $ 0.66 Net Interest Margin 3.85 % 3.69 % 3.58 % 3.47 % Three Months Ended Non-Recurring Adjustments March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 Interest income $ - $ - $ - $ 1,621 Interest expense - - - - Net interest income - - - 1,621 Provision for credit losses - - - - Provision for unfunded commitments - - - - Net interest income after provision - - - 1,621 Non-interest income - - - (1,044) Non-interest expense 427 3,424 664 (311) Income before taxes (427) (3,424) (664) 888 Income tax expense (69) (568) (110) 131 Net income $ (358) $ (2,856) $ (554) $ 757 Earnings per common share Basic $ (0.02) $ (0.14) $ (0.03) $ 0.05 Diluted $ (0.02) $ (0.14) $ (0.03) $ 0.05 Net Interest Margin 0.00 % 0.00 % 0.00 % 0.17 % Non-recurring adjustments summary: First-Quarter 2026 The quarter ended March 31, 2026 was negatively impacted by non-recurring adjustments related to acquisition related expenses in conjunction with the previously announced merger with The Farmers Savings Bank that successfully closed in the fourth quarter of 2025. The expenses impacted net income for the quarter ended March 31, 2026 by approximately $0.4 million on a pre-tax basis. Fourth-Quarter 2025 The quarter ended December 31, 2025 was negatively impacted by non-recurring adjustments related to acquisition related expenses in conjunction with the previously announced merger with The Farmers Savings Bank that successfully closed in the fourth quarter of 2025. The expenses impacted net income for the quarter ended December 31, 2025 by approximately $3.4 million on a pre-tax basis. Third-Quarter 2025 The quarter ended September 30, 2025 was negatively impacted by non-recurring adjustments related to acquisition related expenses in conjunction with the previously announced merger with The Farmers Savings Bank that is successfully closed in the fourth quarter of 2025. The expenses impacted net income for the quarter ended September 30, 2025 by approximately $0.7 million on a pre-tax basis. Second-Quarter 2025 The quarter ended June 30, 2025 was positively impacted by non-recurring adjustments to our loan and lease portfolio resulting from a core system conversion during the second quarter of 2025, which positively impacted net income for the quarter ended June 30, 2025 by approximately $0.6 million on a pre-tax basis, and the release of a reserve established in the third-quarter of 2024 for a reconciling item associated with a system conversion, which positively impacted net income for the quarter ended June 30, 2025 by approximately $0.3 million on a pre-tax basis. View original content to download multimedia:https://www.prnewswire.com/news-releases/civista-bancshares-inc-announces-first-quarter-2026-financial-results-of--0-72-per-common-share-up-0-06-per-common-share-from-first-quarter-2025--302749415.html SOURCE Civista Bancshares, Inc.