Civista Bancshares, Inc. Announces Second-Quarter 2026 Net Income of $14.3 million, up $3.3 million from Second-Quarter 2025

SANDUSKY, Ohio, July 23, 2026 /PRNewswire/ -- Civista Bancshares, Inc. (NASDAQ: CIVB) ("Civista") today reported net income of $14.3 million, or $0.69 per common share, for the quarter ended June 30, 2026. The results of the periods presented include the impact of The Farmers Savings Bank ("FSB") merger since November 7, 2025.

• Net income for the second-quarter of 2026 of  $14.3 million, a $3.3 million or 30.0% increase compared to $11.0 million for the second-quarter 2025, but down $0.7 million or 4.5% compared to $15.0 million for the first-quarter 2026.
• Net interest margin expanded 25 basis points year-over-year to 3.89% while cost of funds declined 37 basis points.
• Diluted earnings per common share were $0.69 for the second quarter of 2026, compared to $0.71 for the second quarter of 2025. The modest decrease primarily reflects the additional shares issued in connection with the FSB merger and common stock offering completed during the second-half of 2025. 
• Pre-Provision Net Revenue (PPNR) for the second quarter of 2026 was $18.9 million, compared to $17.4 million in the first quarter of 2026 and $13.9 million for the second quarter of 2025.
• Cost of funds of 194 basis points for the second-quarter of 2026, 37 basis points lower than the 232 basis points cost of funds for the second-quarter of 2025, and 2 basis points lower than the 196 basis points in first-quarter 2026.
• Cost of deposits of 183 basis points for the second-quarter of 2026, down 13 basis points compared to 196 basis points in the second-quarter of 2025, but 2 basis points higher than the 181 basis points in the first-quarter of 2026.
• Brokered deposits declined $25.0 million linked quarter and $52.0 million since year-end 2025 as Civista continued optimizing its funding mix and reducing higher-cost funding sources.
• Total loans increased $25.2 million, or 0.8%, in the second quarter of 2026 compared to the first quarter of 2026.
• Return on Assets of 1.34%, compared to 1.06% for the second quarter of 2025.
• Leadership Transition: As previously announced, Dennis Shaffer will be retiring as President and Chief Executive Officer effective August 28, 2026. Chuck Parcher will succeed Shaffer as President and Chief Executive Officer, ensuring a planned and orderly leadership transition.

CEO Commentary:

"Civista delivered a strong second quarter and first half of 2026, reflecting continued execution of our strategy and the strength of our balance sheet," said Dennis Shaffer, President and Chief Executive Officer of Civista Bancshares, Inc. "During the quarter, net interest margin expanded, funding costs continued to improve, credit quality remained stable, and our efficiency ratio improved significantly from a year ago. These results demonstrate the benefits of disciplined balance sheet management and our ongoing focus on operational excellence."

"While the operating environment remains dynamic, our team continues to execute with a focus on prudent growth, sound risk management, strong customer relationships, and long-term shareholder value creation. We remain encouraged by the strength of our core banking franchise, the quality of our customer base, and the opportunities across our markets."

"This quarter also marks my final earnings release as Chief Executive Officer of Civista Bancshares. Serving our customers, communities, shareholders, and employees has been one of the great privileges of my career. I am deeply grateful to our employees for their dedication, to our Board of Directors for their guidance and support, and to our customers for the trust they have placed in Civista throughout the years."

"As we prepare for our leadership transition in August, I am confident that Civista's future is bright. Chuck Parcher is an exceptional leader who understands our culture, our markets, and our commitment to community banking. With a talented leadership team, a strong capital position, and a clear strategic direction, Civista is well positioned for continued growth and success in the years ahead."

Results of Operations:

For the three-month periods ended June 30, 2026, March 31, 2026 and June 30, 2025.
The results of the periods reflect the inclusion of FSB merger since November 7, 2025.

Second-Quarter 2026 Highlights

• Net income of  $14.3 million, a $3.3 million or 30% increase compared to $11.0 million for the second quarter 2025, but down $0.7 million or 4.5% compared to the $15.0 million for the first quarter  of 2026.
• Diluted earnings per common share were $0.69 for the second quarter of 2026, compared to $0.71 for the second quarter of 2025. The modest decrease primarily reflects the additional shares issued in connection with the FSB merger and common stock offering completed during the second-half of 2025. 
• Pre-Provision Net Revenue (PPNR) for the second quarter of 2026 was $18.9 million, compared to $17.4 million in the first quarter of 2026 and $13.9 million for the second quarter of 2025.
• Net interest margin (tax‑equivalent) expanded to 3.89% during the second quarter of 2026, increasing 25 basis points year‑over‑year, reflecting lower funding costs and disciplined balance‑sheet management.
• Net interest income of $38.6 million, up $3.8 million or 10.9% compared to the second quarter of 2025, and up $0.8 million or 2.0% compared to the first quarter of 2026.
• Total loans increased $25.2 million, or 0.8%, in the second quarter of 2026 compared to the first quarter of 2026.
• Brokered deposits declined $25.0 million linked quarter and $52.0 million since year-end 2025 as Civista continued optimizing its funding mix and reducing higher-cost funding sources.
• Cost of funds of 194 basis points for the second-quarter of 2026, 37 basis points lower than the 232 basis points cost of funds for the second-quarter of 2025, and 2 basis points lower than the 196 basis points in first-quarter 2026.
• Cost of deposits of 183 basis points for the second-quarter of 2026, down 13 basis points compared to 196 basis points in the second-quarter of 2025, but 2 basis points higher than the 181 basis points in the first-quarter of 2026.
• Efficiency ratio for the second quarter of 2026 was 58.2%, compared to 64.5% for the second quarter of 2025.
• Return on Assets of 1.34%, compared to 1.06% for the second quarter of 2025.
• Net charge-offs totaled $0.1 million during the quarter.
• Allowance for credit losses on loans / total loans of 1.28%.
• Tangible book value per share increased 6.0% from December 31, 2025, to $20.43 at June 30, 2026
• Declared a quarterly cash dividend of $0.18 per share, consistent with the first quarter 2026.
• Based on the June 30, 2026 closing share price of $28.22, the $0.18 quarterly dividend represents an annualized yield of 2.55% and a payout ratio of 26.14%.

Assets

Total assets at June 30, 2026, were $4.3 billion, unchanged from March 31, 2026.

• Loan and lease balances increased $25.2 million, or 0.8% since March 31, 2026.
• Real Estate Construction loans increased $11.2 million since March 31, 2026, mainly due to seasonal construction patterns that typically see their lowest activity in the first quarter and a ramp up in activity starting in the second quarter.
• Residential Real Estate increased $14.5 million since March 31, 2026 reflecting increased demand for new originations.

Deposits & Borrowings

Total deposits at June 30, 2026, were $3.5 billion, a decrease of $43.6 million, or 1.2% from March 31, 2026.  Total deposits declined modestly due primarily to seasonal public fund fluctuations and continued reduction of higher-cost brokered deposits.

• Interest-bearing demand deposits decreased $38.5 million from March 31, 2026, primarily due to decreases of $29.0 million and $9.7 million in interest-bearing public funds and retail interest-bearing demand deposits, respectively, slightly offset by an increase of $1.7 million in jumbo demand deposits.
• Savings and money markets decreased $20.2 million from March 31, 2026, primarily due to decreases of $10.5 million, $10.2 million, and $4.6 million, in ICS money market deposits, retail money market deposits, and statement savings, respectively, slightly offset by an increase of $3.2 million in business money market deposits.  
• Time deposits increased $50.7 million from March 31, 2026, primarily due to increases of $29.2 million, $16.3 million, and $5.7 million in jumbo CDs, retail CDs, and CDARS, respectively.
• Brokered deposits totaled $350.1 million at June 30, 2026, which included brokered certificates of deposit of $350.0 million and brokered money markets of $0.1 million.  Brokered deposits decreased $25.0 million from March 31, 2026, reflecting management's continued efforts to reduce higher cost brokered deposits.    
• FHLB short-term advances totaled $123.5 million on June 30, 2026, up $23.5 million from March 31, 2026. 

Net Interest Income and Net Interest Margin

Net interest income increased $3.8 million, or 10.9%, for the second quarter of 2026, compared to the same period last year. In the second quarter of 2025, net interest income was increased by $1.6 million from non-recurring adjustments resulting from the Civista Leasing and Finance Division core system conversion.   

• Interest income increased $0.3 million year over year, primarily reflecting growth in average interest‑earning assets, mostly offset by the non-recurring adjustment discussed above in the second quarter of 2025.
• Interest expense decreased $3.5 million year over year, mainly due to lower borrowing costs from reduced short‑term FHLB advances coupled with strategic time deposit pricing.
• Net interest margin increased 25 basis points to 3.89% for the second quarter of 2026, compared to 3.64% 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.

Net interest income increased $8.8 million, or 13.1%, for the six months ended June 30, 2026, compared to the same period last year.  For the six months ended June 30, 2025, net interest income was increased by $1.6 million from non-recurring adjustments resulting from the Civista Leasing and Finance Division core system conversion.

• Interest income increased $2.4 million for the six-months ended June 30, 2026, compared to the same period last year, attributed to average interest-earning assets increasing $176.4 million, slightly offset by a 10-basis point decrease in asset yield.
• Interest expense decreased $6.5 million for the six months ended June 30, 2026, compared to the same period last year. This was due to a 104-basis point reduction in higher cost short-term FHLB borrowings coupled with a 48-basis point drop in time deposits, mostly offset by $235.2 million average balance growth in interest-bearing deposits.
• Net interest margin increased 30-basis points to 3.87% for the six months ended June 30, 2026, compared to 3.57% for the same period last year.

Credit

Provision for credit losses (including provision for unfunded commitments) increased $0.8 million for the second quarter of 2026 to $1.8 million compared to $1.0 million for the same period last year.

• Civista recorded net charge-offs of $0.1 million for the second quarter of 2026 compared to net charge-offs of $1.0 million for the same period last year.
• The allowance for credit losses to loans ratio was 1.28% at June 30, 2026, compared to 1.28% at June 30, 2025, and 1.28% at December 31, 2025.
• The allowance for credit losses was $41.7 million at June 30, 2026, compared to $40.5 million at June 30, 2025, and $42.0 million at December 31, 2025.
• Non-performing assets at June 30, 2026, were $30.5 million, a decrease of $0.8 million or 2.6%, from December 31, 2025. The non-performing assets to assets ratio was 0.71% and 0.72% at June 30, 2026 and December 31, 2025, respectively. 
• The allowance for credit losses to non-performing loans increased slightly to 136.8% at June 30, 2026, from 134.2% at December 31, 2025.  

Non-interest Income

Non-interest income for the second quarter of 2026 totaled $9.0 million, an increase of $2.4 million or 36.7%, when compared to the same period last year. In the second quarter of 2025, noninterest income was reduced by $1.0 million from non-recurring adjustments resulting from the Civista Leasing and Finance Division core system conversion.    

• Service charges increased $0.3 million for the second quarter of 2026, compared to the same period last year, primarily from higher business service charges and retail overdraft fees.
• Net gain on sale of loans increased $0.7 million for the second quarter of 2026, compared to the same period last year, due to favorable secondary market conditions resulting in higher sales volumes for both loans and leases.
• Lease revenue and residual income increased $0.9 million for the second quarter of 2026 compared to the same period last year due to the non-recurring adjustment discussed above. Excluding the non-recurring adjustment, lease revenue and residual income was relatively unchanged year-over-year.

Noninterest income totaled $18.4 million, an increase of $4.0 million or 27.6%, when compared to the same period last year. For the six months ended June 30, 2025, noninterest income was reduced by $1.0 million from non-recurring adjustments resulting from the Civista Leasing and Finance Division core system conversion.  

• Service charges increased $0.5 million for the six months ended June 30, 2026, compared to the same period last year, primarily from higher business service charges and retail overdraft fees.
• Net gain on sale of loans increased $1.7 million for the six months ended June 30, 2026, compared to the same period last year. Secondary market sales volumes increased due to favorable secondary market conditions coupled with disciplined pricing strategies on both the loan and lease gain on sale margins.
• Lease revenue and residual income increased $0.6 million for the six months ended June 30, 2026, compared to the same period last year, due to the non-recurring adjustment discussed above. Excluding the non-recurring adjustment, lease revenue and residual income was down slightly year-over-year resulting from increased origination volume offset by lower residual income.
• Other income increased $0.6 million for the six months ended June 30, 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 second quarter of 2026 totaled $28.7 million, an increase of $1.2 million or 4.3%, when compared to the same period last year.  In the second quarter of 2025, noninterest expense was reduced by $0.3 million from non-recurring adjustments resulting from the Civista Leasing and Finance Division core system conversion. These expenses are recorded in equipment expense of $0.1 million and other noninterest expense of $0.2 million.

• Compensation expense increased $0.7 million for the second quarter of 2026, compared to the same period last year, primarily due to increases in salaries and medical expenses associated with a higher number of full-time equivalent (FTE) employees year-over-year.  
• The quarter-to-date average number of FTE employees was 549 at June 30, 2026, compared with an average number of 526 for the same period in 2025.  
• FDIC assessment decreased $0.3 million for the second quarter of 2026, compared to the same period last year, mainly due to an improvement in Civista's risk-based assessment rate, reflecting favorable trends in regulatory ratios and supervisory metrics used in the FDIC's pricing methodology.
• Professional fees decreased $0.6 million for the second quarter of 2026, compared to the same period last year, mainly due to utilizing consultants in 2025 to assist in transitioning Civista Leasing and Finance Division to a new core processing system. 
• Amortization of intangibles increased $0.4 million for the second quarter of 2026, compared to the same period last year due to the merger of FSB that closed in November 2025.
• The efficiency ratio was 58.2% for the quarter ended June 30, 2026, compared to 64.5% for the same period last year. The change in the efficiency ratio is primarily due to a 10.9% increase in net interest income and a 36.7% increase in non-interest income, slightly offset by a 4.3% increase in non-interest expenses.

Noninterest expense totaled $58.5 million, an increase of $3.9 million or 7.2%, when compared to the same period last year.  For the six months ended June 30, 2026, noninterest expense was increased by $0.4 million from non-recurring adjustments related to acquisition expenses from the merger with FSB that closed in November 2025.  These expenses are recorded in other noninterest expenses.  For the six months ended June 30, 2025, noninterest expense was reduced by $0.3 million from non-recurring adjustments resulting from the Civista Leasing and Finance Division core system conversion. These expenses are recorded in equipment expense of $0.1 million and other noninterest expense of $0.2 million.

• Compensation expense increased $2.9 million for the six months ended June 30, 2026, compared to the same period last year, primarily due to increases in salaries and medical expenses associated with a higher number of full-time equivalent (FTE) employees year-over-year.    
• The year-to-date average number of FTE employees was 548 at June 30, 2026, compared with an average number of 523 for the same period in 2025.  
• FDIC assessment decreased $0.7 million for the six months ended June 30, 2026, compared to the same period last year, mainly due to an improvement in Civista's risk-based assessment rate, reflecting favorable trends in regulatory ratios and supervisory metrics used in the FDIC's pricing methodology.
• Professional fees decreased $1.1 million for the six months ended June 30, 2026, compared to the same period last year, mainly due to utilizing consultants to assist in transitioning Civista Leasing and Finance Division to a new core processing system. 
• Amortization of intangibles increased $0.7 million for the six months ended June 30, 2026, compared to the same period last year due to the merger of FSB that closed in November 2025.
• The efficiency ratio was 59.1% for the six months ended June 30, 2026, compared to 64.7% for the same period last year. The change in the efficiency ratio is primarily due to a 13.1% increase in net interest income and a 27.6% increase in noninterest income, somewhat offset by a 7.2% increase in noninterest expenses.

Taxes

Civista's effective income tax rate for the second quarter of 2026 was 16.7% compared to 14.6% for the same period last year.  

Civista's effective income tax rate for the six months ended June 30, 2026, was 16.7% compared to 14.7% in the same period last year.

Capital

Total shareholders' equity at June 30, 2026, totaled $566.8 million, an increase of $23.3 million from December 31, 2025. This resulted from an increase of $21.8 million in retained earnings coupled with a decrease in accumulated other comprehensive loss of $0.6 million resulting from the change in the unrealized loss on available-for-sale securities portfolio. 

Civista did not repurchase any shares in the first six months ended June 30, 2026, as the current repurchase plan is set to expire in April 2027. For the six months ended June 30, 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 second quarter of 2026 at 1:00 p.m. ET on Thursday, July 23, 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. second 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 $4.3 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.

Non-interest income

Civista Bancshares, Inc.

Financial Highlights

(Unaudited, dollars in thousands, except share and per share amounts)

Supplemental Financial Information

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