Civista Bancshares, Inc. Announces Third-Quarter 2025 Financial Results of $0.68 per Common Share, up 28% from $0.53 per Common Share from Third-Quarter 2024

"Our third-quarter results demonstrate strong momentum, with net income rising 53% to $12.8 million from $8.4 million a year ago, and earnings per share increasing 28% to $0.68 from $0.53," said Dennis G. Shaffer, CEO and President of Civista. "These gains reflect the effectiveness of our disciplined growth strategy and the strength of our customer relationships."

"We've received regulatory approval for our partnership with The Farmers Savings Bank, which is expected to close in November. This milestone—combined with our recent $80.5 million capital raise—will significantly expand our presence in Northeast Ohio, enhance liquidity, and serve as a strong foundation for accelerated growth," Shaffer added.

"Our credit quality remains strong and stable, reflecting the rigor of our underwriting and the enduring strength of our customer relationships," Shaffer said. "Despite ongoing economic pressures, our disciplined approach continues to serve us well, positioning Civista to navigate challenges and grow organically with confidence. We remain committed to delivering tailored financial solutions that support the evolving needs of the communities we serve."

Results of Operations:

For the three-month periods ended September 30, 2025, June 30, 2025 and September 30, 2024 and the nine-month periods ended September 30, 2025 and September 30, 2024.

Third-Quarter 2025 Highlights

• Completed an underwritten public offering of common stock, including an overallotment option. The offering totaled 3,788,238 shares at a price of $21.25 per share, raising approximately $80,500,058.
• Diluted earnings per common share of $0.68, for the third quarter of 2025, compared to $0.53 per diluted share, for the third quarter of 2024, and $0.71 per diluted share in the second quarter of 2025.
• Net income of $12.8 million, an increase of 53% or $4.4 million compared to $8.4 million for the third quarter 2024, and an increase of 16% or $1.8 million compared to $11.0 million in the second quarter of 2025.
• Net interest margin (tax equivalent) of 3.58%for the third quarter of 2025, compared to 3.16% for the third quarter of 2024.
• Net interest income of $34.5 million, up $5.3 million or 18.2% compared to the third quarter of 2024.
• 200 basis points cost of deposits for the third-quarter of 2025, up 4 basis points compared to the second-quarter of 2025, but 18 basis points lower than the 218 basis points in the third-quarter of 2024.
• 227 basis points cost of funds for the third-quarter of 2025, down 5 basis points from the 232 basis points in the second-quarter of 2025, and 34 basis points lower than the 261 basis points cost of funds in the third-quarter of 2024.
• Efficiency ratio of 61.4%, compared to 70.5% for the third quarter of 2024 and 64.5% for the second quarter of 2025.
• Return on Assets of 1.22%, compared to 0.83% for the third quarter of 2024.
• Return on Equity of 10.70%, compared to 8.73% for the third quarter of 2024.
• Allowance for credit losses on loans / total loans of 1.30%.
• Based on the September 30, 2025, market close share price of $20.31, the $0.17 third quarter dividend is equivalent to an annualized yield of 3.3% and a dividend payout ratio of 25.0%.
• The third-quarter of 2025 included non-recurring items which negatively impacted net income by approximately $0.7 million on a pre-tax basis, $0.6 million on an after-tax basis, and $0.03 per common share.
• Announced the signing of a definitive merger agreement to acquire The Farmers Savings Bank.
• Received all required regulatory approvals for the proposed merger with The Farmers Savings Bank; transaction expected to close in November 2025, pending shareholder approval and customary closing conditions.

Assets

Total assets at September 30, 2025, were $4.1 billion, a decrease of $72.5 million, or 1.7% from June 30, 2025, but up $14.9 million, or 0.4%, from December 31, 2024.

• Loan and lease balances decreased $55.1 million, or 1.8% since June 30, 2025, but up $14.8 million, or 0.5% since December 31, 2024.
• Commercial Real Estate decreased mainly in the non-owner occupied category.
• Residential Real Estate has continued to grow primarily due to more home loans as we meet the demand for housing by our customers and communities.

Deposits & Borrowings

Total deposits at September 30, 2025, were $3.2 billion, an increase of $34.3 million, or 1.1% from June 30, 2025, and an increase of $18.6 million, or 0.6%, from December 31, 2024. 

• Noninterest-bearing demand deposits decreased $43.2 million from December 31, 2024, primarily due to a $45.3 million decrease in noninterest-bearing accounts related to commercial business deposits, partially offset by a $5.9 million increase in noninterest-bearing public funds.
• Interest-bearing demand deposits decreased $4.0 million from December 31, 2024, primarily due to a $14.1 million increase in interest-bearing public funds, offset by a $16.7 million decrease in interest-bearing and Jumbo now deposits.
• Savings and money markets increased $3.0 million from December 31, 2024, primarily due to an increase of $52.0 million in business money market deposits, offset by a $49.8 million decrease in retail and ICS money market, public funds, and corporate savings.
• Time deposits increased $131.8 million from December 31, 2024, primarily due to a $137.7 million increase in Jumbo and retail certificates of deposit.
• Brokered deposits totaled $431.2 million at September 30, 2025, which included brokered certificate of deposits of $425.0 million and brokered money markets of $6.1 million. Brokered deposits decreased $23 million from June 30, 2025 and $69.1 million from December 31, 2024, strategically reducing the balances of brokered deposits.
• FHLB short-term advances totaled $232.0 million on September 30, 2025, down $201.5 million from June 30, 2025, and down $107.0 million from December 31, 2024.
• FHLB long-term advances totaled $1.0 million on September 30, 2025, down from $1.1 million June 30, 2025, and down from $1.5 million on December 31, 2024.

Net Interest Income and Net Interest Margin

Net interest income increased $5.3 million, or 18.2%, for the third quarter of 2025, compared to the same period last year. 

• Interest income increased $2.5 million for the third quarter of 2025, compared to the same period last year, attributed to average interest-earning assets increasing $123.6 million coupled with a 5-basis point increase in asset yield.
• Interest expense decreased $2.8 million for the third quarter of 2025, compared to the same period last year. This was due to a 101-basis point reduction in higher costing short-term FHLB borrowings coupled with a 136-basis point reduction in time deposits mostly offset by $168.9 million average balance growth in total interest-bearing deposits when comparing the third quarter of 2025 to the same period last year.
• Net interest margin increased 42-basis points to 3.58% for the third quarter of 2025, compared to 3.16% for the same period last year.

Net interest income increased $16.8 million, or 19.7%, for the nine months ended September 30, 2025, compared to the same period last year. For the nine months ended September 30, 2025, net interest income was increased in Q2 2025 by $1.6 million from non-recurring adjustments resulting from the Civista Leasing and Finance Division core system conversion.

• Interest income increased $11.8 million for the nine-months ended September 30, 2025, compared to the same period last year, attributed to average interest-earning assets increasing $197.9 million coupled with a 14-basis point increase in asset yield.
• Interest expense decreased $5.0 million for the nine months ended September 30, 2025, compared to the same period last year. This was due to a 104-basis point reduction in higher costing short-term FHLB borrowings coupled with a 128-basis point drop in time deposits, mostly offset by $230.4 million average balance growth in interest-bearing deposits, when comparing the nine-months ended September 30, 2025, to the same period last year.
• Net interest margin increased 42-basis points to 3.58% for the nine months ended September 30, 2025, compared to 3.16% for the same period last year.

Credit

Provision for credit losses (including provision for unfunded commitments) decreased $0.8 million for the third quarter of 2025 to $0.2 million compared to $1.0 million for the same period last year, and decreased $0.8 million compared to $1.0 million in the second quarter of 2025.

• Civista recorded net charge-offs of $0.6 million for the third quarter of 2025 compared to net charge-offs of basically zero for the same period of 2024, and $1.0 million in the second quarter of 2025.
• The allowance for credit losses to loans ratio was 1.30% at September 30, 2025, compared to 1.28% at June 30, 2025, and 1.29% at December 31, 2024.
• Non-performing assets at September 30, 2025, were $22.8 million, a decrease of $0.4 million or 1.6%, from June 30, 2025. The non-performing assets to assets ratio was flat at 0.55% at both September 30, 2025, and June 30, 2025.
• The allowance for credit losses to non-performing loans increased to 176.5% at September 30, 2025, from 120.8% at December 31, 2024.

Noninterest Income

Noninterest income for Q3 2025 totaled $9.6 million, a decrease of $0.5 million or 4.6%, when compared to the same period last year. 

• Lease revenue and residual income decreased $0.5 million for the third quarter of 2025 compared to the same period last year, mainly due to lease originations being curtailed in 2025 resulting from the Civista Leasing and Finance core system conversion.

For the nine months ended September 30, 2025, Noninterest income totaled $24.1 million, a decrease of $4.7 million or 16.2%, when compared to the same period last year. For the nine months ended September 30, 2025, noninterest income was reduced in the second quarter 2025 by $1.0 million from non-recurring adjustments resulting from the Civista Leasing and Finance Division core system conversion. 

• Lease revenue and residual income decreased $3.3 million for the nine months ended September 30, 2025, compared to the same period last year, due to stronger lease originations in 2024 coupled with a one-time non-recurring adjustment aforementioned above.
• Net gain on sale of loans decreased $0.3 million for the nine months ended September 30, 2025, compared to the same period last year, resulting from timing of selling loans.
• Other income decreased $1.3 million for the nine month ended September 30, 2025, compared to the same period last year, primarily related to lower fee revenue from the leasing division.
• Service charges increased $0.2 million for the nine months ended September 30, 2025, compared to the same period last year, primarily from an increase in retail overdraft fees year-over-year.

Noninterest Expense

Noninterest expense for Q3 2025 totaled $28.3 million, a decrease of $0.1 million or 0.2%, when compared to the same period last year.  In the third quarter of 2025, noninterest expense was increased by $0.7 million from acquisition expenses related to the previously announced merger with The Farmers Savings Bank that is expected to close in the fourth quarter of 2025.  These expenses are recorded in other noninterest expenses.

• Compensation expense decreased $0.7 million for the third quarter of 2025 compared to the same period last year, primarily due an increase in the deferral of salaries and wages related to the loan originations in the third quarter of 2025 partially offset by an increase in medical expenses.
• The quarter-to-date average number of full-time equivalent ("FTE") employees was 524 at September 30, 2025, compared with an average number of 526 for the same period in 2024.
• Marketing expenses decreased $0.3 million for the third quarter of 2025 compared to the same period last year, primarily due to a shift to digital marketing and lower promotional expenses related to advertising and product marketing.
• Equipment expense decreased $0.1 million for the three months ended September 30, 2025 compared to the same period in 2024, mainly due to lower expense on operating lease contracts mostly offset by $0.7 million in depreciation expense on assets that had a net book value but are no longer in use.
• Other expenses increased $0.3 million for the third quarter of 2025 compared to the same period last year, mainly due to the aforementioned acquisition-related expenses.
• The efficiency ratio was 61.4% for the quarter ended September 30, 2025, compared to 70.5% for the same period last year. The change in the efficiency ratio is primarily due to a 0.2% decrease in noninterest expenses, a 18.2% increase in net interest income, partially offset by a 4.6% decrease in noninterest income.

For the nine months ended September 30, 2025, Noninterest expense totaled $82.9 million, a decrease of $1.3 million or 1.5%, when compared to the same period last year.  For the nine months ended September 30, 2025, noninterest expense was increased in the second quarter of 2025 by $0.4 million from non-recurring adjustments resulting from the Civista Leasing and Finance Division core system conversion as well as the aforementioned acquisition-related expenses. 

• Compensation expense decreased $2.7 million for the nine months ended September 30, 2025 compared to the same period last year, primarily due to an increase in the deferral of salaries and wages related to the loan originations in the first nine months of 2025.
• The year-to-date average number of FTE employees was 523 at September 30, 2025, compared with an average number of 531 for the same period in 2024.
• Professional fees increased $1.6 million for the nine months ended September 30, 2025, 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.
• Equipment expense decreased $1.2 million for the nine months ended September 30, 2025, compared to the same period last year, due to normal equipment depreciation as well as decreases in equipment expense related to operating lease contracts, partially offset by $0.7 million in depreciation expense on assets that had a net book value but are no longer in use.
• The efficiency ratio was 63.5% for the nine months ended September 30, 2025, compared to 71.7% for the same period last year. The change in the efficiency ratio is primarily due to a 1.5% decrease in noninterest expenses, a 19.7% increase in net interest income, partially offset by a 16.2% decrease in noninterest income.

Taxes

Civista's effective income tax rate for the third quarter of 2025 was 18.5% compared to 15.6% for the same period last year, and 14.6% for the second quarter of 2025. 

Civista's effective income tax rate for the nine months ended September 30, 2025, was 16.2% compared to 13.5% in the same period last year. 

Capital

Total shareholders' equity at September 30, 2025, totaled $499.0 million, an increase of $94.9 million from June 30, 2025, and $110.5 million from December 31, 2024. This resulted from a capital raise management performed during the third quarter.  See Recent Developments below for the impact to capital from the public offering of its common stock.

Civista did not repurchase any shares in the third quarter of 2025 as the current repurchase plan is set to expire in April 2026.  For the nine months ended September 30, 2025,  Civista liquidated 8,716 shares held by employees, at an average price of $20.36 per share, to satisfy tax obligations stemming from vesting of restricted shares.

Recent Developments

July 10, 2025, Civista Bancshares, Inc. announced the signing of a definitive merger agreement pursuant to which Civista will acquire The Farmers Savings Bank.

July 10, 2025, Civista Bancshares, Inc. announced an underwritten public offering of its common stock, including an overallotment option. The offering totaled 3,788,238 shares at a price of $21.25 per share, raising approximately $80,500,058.

October 2025, Civista Bancshares, Inc. received all required regulatory approvals for the proposed merger with The Farmers Savings Bank; transaction expected to close in November 2025, pending shareholder approval and customary closing conditions.

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 2025 at 1:00 p.m. ET on Thursday, October 23, 2025.  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. third quarter 2025 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 $4.1 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 42 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' 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, 2024, 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. Information concerning these non-GAAP financial measures can be found in the 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.