Civista Bancshares, Inc. Announces Third Quarter 2026 Net Income of $16.0 million, up 25.5% from Third Quarter 2025

SANDUSKY, Ohio, Oct. 22, 2026 /PRNewswire/ -- Civista Bancshares, Inc. (NASDAQ:CIVB) ("Civista") today reported net income of $16.0 million, or $0.77 per diluted common share, for the quarter ended September 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 third quarter of 2026 of $16.0 million, a $3.3 million or 25.5% increase compared to $12.8 million for the third quarter 2025, and a $1.7 million, or 11.9% increase from the second quarter 2026.
• Net interest margin expanded 35 basis points year-over-year to 3.93% while cost of funds declined 30 basis points.
• Earnings per diluted common share were $0.77 for the third quarter of 2026, compared to $0.68 for the third quarter of 2025.  
• Pre-Provision Net Revenue (PPNR) for the third quarter of 2026 was $21.1 million, compared to $15.9 million in the third quarter of 2025 and $18.9 million for the second quarter of 2026.
• Total loans increased $38.0 million, or 1.2%, in the third quarter of 2026 compared to the second quarter of 2026.
• Return on Assets of 1.48%, compared to 1.22% for the third quarter of 2025.
• The efficiency ratio improved to 55.3% for the third quarter of 2026 from 61.4% for the third quarter of 2025.

CEO Commentary:

"I am pleased with Civista's strong performance in the third quarter and proud of the continued execution by our team," said Chuck Parcher, President and Chief Executive Officer of Civista Bancshares, Inc. "We delivered net income of $16.0 million, expanded our net interest margin to 3.93%, and improved our efficiency ratio to 55.3%, while also generating solid loan growth. These results reflect the strength of our franchise, disciplined balance sheet management, and the dedication of our employees to serving our customers and communities."

"Our focus remains on growing responsibly while maintaining a strong and well-managed balance sheet. Total loans increased $38.0 million during the quarter, while brokered deposits declined another $25.0 million. Credit quality also remained well managed, with non-performing assets declining to $27.6 million. We are encouraged by these trends and remain focused on balancing growth with prudent funding and credit risk management."

"As I begin my tenure as President and CEO, I am honored to have the opportunity to lead Civista and build upon the strong foundation established by those who came before me. Our priorities remain clear: take care of our customers, support our communities, invest in our people, and deliver consistent execution. I have tremendous confidence in our team, the strength of our franchise, and Civista's ability to create long-term value for our shareholders, customers, and communities."

Results of Operations:

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

Third Quarter 2026 Highlights

• Net income of $16.0 million, a $3.3 million or 25.5% increase compared to $12.8 million for the third quarter 2025, and a $1.7 million, or 11.9% increase from the second quarter 2026.
• Earnings per diluted common share were $0.77 for the third quarter of 2026, compared to $0.68 for the third quarter of 2025.  
• Pre-Provision Net Revenue (PPNR) for the third quarter of 2026 was $21.1 million, compared to $15.9 million in the third quarter of 2025 and $18.9 million for the second quarter of 2026.
• Net interest margin expanded 35 basis points year-over-year to 3.93% while cost of funds declined 30 basis points.
• Net securities losses from the sale of debt securities were $1.6 million for the third quarter of 2026 related to balance sheet repositioning.
• Other non-interest income includes $1.8 million of net insurance proceeds related to the Stateline branch fire that occurred in December 2025.
• Cost of funds of 197 basis points for the third quarter of 2026, 30 basis points lower than the 227 basis points cost of funds for the third quarter of 2025, and 3 basis points higher than the 194 basis points in second quarter 2026.
• Cost of deposits of 182 basis points for the third quarter of 2026, down 18 basis points compared to 200 basis points in the third quarter of 2025, and 1 basis point lower than the 183 basis points in the second quarter of 2026.
• Brokered deposits declined $25.0 million during the third quarter and $77.0 million since year-end 2025 as Civista continued optimizing its funding mix and reducing higher-cost funding sources.
• Total loans increased $38.0 million, or 1.2%, in the third quarter of 2026 compared to the second quarter of 2026.
• The efficiency ratio improved to 55.3% for the third quarter of 2026 from 61.4% for the third quarter of 2025.
• Return on Assets of 1.48%, compared to 1.22% for the third quarter of 2025.
• Net charge-offs totaled $0.1 million during the quarter, compared with $0.6 million in the third quarter of 2025.
• Allowance for credit losses on loans / total loans of 1.29%.
• Tangible book value per share increased 3.1% from December 31, 2025, to $19.87 at September 30, 2026
• Declared a quarterly cash dividend of $0.18 per share, consistent with the second quarter 2026.
• Based on the September 30, 2026 closing share price of $26.38, the $0.18 quarterly dividend represents an annualized yield of 2.73% and a payout ratio of 23.34%.

Assets

Total assets were $4.3 billion at September 30, 2026, up $10.6 million from June 30, 2026, and down $31.5 million from December 31, 2025.

• Loan and lease balances increased $38.0 million, or 1.2%, from June 30, 2026, and $22.9 million, or 0.7% from December 31, 2025.
• Residential Real Estate increased $24.9 million since June 30, 2026 reflecting continued strength in residential lending activity and solid customer demand.
• Real Estate Construction loans increased $15.4 million since June 30, 2026, continuing the seasonal increase in construction lending activity that began in the second quarter.

Deposits & Borrowings

Total deposits were $3.5 billion at September 30, 2026, an increase of $19.4 million from June 30, 2026, and $11.2 million from December 31, 2025.

• Noninterest-bearing demand deposits increased $30.3 million from June 30, 2026, primarily due to increases of $19.9 million and $14.8 million in business commercial deposits and public fund deposits, respectively, slightly offset by a decrease of $3.2 million in retail noninterest-bearing deposits.
• Savings and money markets increased $15.8 million from June 30, 2026, primarily due to an increase of $29.2 million in business money market deposits. The increase was somewhat offset by decreases of $9.8 million and $5.3 million in ICS money market deposits and consumer savings, respectively.  
• Brokered deposits totaled $325.1 million at September 30, 2026, which included brokered certificates of deposit of $325.0 million and brokered money markets of $0.1 million. Brokered deposits decreased $25.0 million from June 30, 2026, reflecting management's continued efforts to reduce higher cost brokered deposits.   
• FHLB short-term advances totaled $122.5 million on September 30, 2026, down $1.0 million from June 30, 2026. 

Net Interest Income and Net Interest Margin

Net interest income increased $4.9 million, or 14.1%, for the third quarter of 2026, compared to the same period in 2025.   

• Interest income increased $2.6 million year over year, primarily reflecting growth in average interest‑earning assets.
• Interest expense decreased $2.3 million year over year, mainly due to lower borrowing costs from reduced short‑term FHLB advances coupled with disciplined deposit pricing.
• Net interest margin increased 35 basis points to 3.93% for the third quarter of 2026, compared to 3.58% for the same period in 2025, reflecting continued disciplined deposit pricing, a reduced reliance on higher‑cost wholesale funding, and partially supplemented by favorable loan yields and earning asset mix management.

Net interest income increased $13.7 million, or 13.4%, for the nine months ended September 30, 2026, compared to the same period in 2025.  For the nine months ended September 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 $4.9 million for the nine months ended September 30, 2026, compared to the same period in 2025, attributed to average interest-earning assets increasing $172.3 million, slightly offset by a 6-basis point decrease in asset yield.
• Interest expense decreased $8.8 million for the nine months ended September 30, 2026, compared to the same period in 2025. This was due to an 81-basis point reduction in higher cost short-term FHLB borrowings coupled with a 44-basis point drop in time deposits, mostly offset by $212.1 million average balance growth in interest-bearing deposits.
• Net interest margin increased 31-basis points to 3.89% for the nine months ended September 30, 2026, compared to 3.58% for the same period in 2025.

Credit

Provision for credit losses, including provision for unfunded commitments, was $1.3 million for the third quarter of 2026, compared to $0.2 million for the third quarter of 2025.

• Civista recorded net charge-offs of $0.1 million for the third quarter of 2026, compared to net charge-offs of $0.6 million for the same period in 2025.
• The allowance for credit losses was $42.4 million, or 1.29% of total loans, at September 30, 2026, compared to 1.30% at September 30, 2025, and 1.28% at December 31, 2025.
• Non-performing assets at September 30, 2026, were $27.6 million, a decrease of $3.7 million or 11.7%, from December 31, 2025. The non-performing assets to assets ratio was 0.64% and 0.72% at September 30, 2026 and December 31, 2025, respectively. 
• The allowance for credit losses to non-performing loans increased to 153.3% at September 30, 2026, from 134.2% at December 31, 2025.  

Non-interest Income

Non-interest income for the third quarter of 2026 totaled $9.7 million, up slightly from $9.6 million for the same period in 2025.  

• Service charges increased $0.2 million for the third quarter of 2026, compared to the same period in 2025, primarily from higher business service charges and retail overdraft fees.
• Net loss on sale of debt securities was $1.6 million for the third quarter of 2026 as part of a balance sheet repositioning strategy. Civista sold $6.6 million in securities, mainly lower-yielding securities and reinvested the proceeds into higher-yielding assets, which is expected to enhance future net interest income and support net interest margin expansion.
• Mortgage banking increased $0.1 million for the third quarter of 2026, compared to the same period in 2025, reflecting improved secondary market execution resulting from expanding the use of mandatory delivery loan sales while continuing to utilize best-efforts delivery channels.   
• Other income increased $1.7 million for the third quarter of 2026, compared to the same period in 2025, primarily reflecting $1.8 million in net insurance proceeds in the third quarter of 2026 related to the Stateline branch fire.

Non-interest income totaled $28.1 million, an increase of $4.0 million or 16.6%, when compared to the same period in 2025. For the nine months ended September 30, 2025, non-interest 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 $0.7 million for the nine months ended September 30, 2026, compared to the same period in 2025, primarily from higher business service charges and retail overdraft fees.
• Net loss on sale of debt securities was $1.6 million for the nine months ended September 30, 2026 as part of a balance sheet repositioning strategy.
• Mortgage banking increased $0.8 million for the nine months ended September 30, 2026, compared to the same period in 2025, reflecting improved secondary market execution and disciplined pricing strategies.
• Leasing and commercial finance revenue increased $1.3 million for the nine months ended September 30, 2026, compared to the same period in 2025, due to the non-recurring adjustment discussed above. Excluding the non-recurring adjustment, leasing and commercial finance revenue was up $0.3 million year-over-year resulting from increased origination volume.
• Other income increased $2.4 million for the nine months ended September 30, 2026, compared to the same period in 2025, due to net insurance proceeds of $1.8 million and $0.5 million in income from the Company's captive insurance subsidiary, CIVB Risk Management, recorded 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 third quarter of 2026 totaled $28.0 million, a decrease of $0.3 million or 1.2%, compared to the third quarter of 2025.  In the third quarter of 2025, non-interest expense was increased by $0.7 million from acquisition expenses related to the acquisition of The Farmers Savings Bank ("FSB") that closed in the fourth quarter of 2025. These expenses were recorded in other non-interest expense.

• Compensation expense increased $0.3 million for the third quarter of 2026, compared to the same period in 2025, 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 555 at September 30, 2026, compared with an average number of 524 for the same period in 2025. 
• FDIC assessment decreased $0.3 million for the third quarter of 2026, compared to the same period in 2025, 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.
• Equipment expense decreased $0.6 million for the third quarter of 2026, compared to the same period in 2025, mainly due to $0.7 million in depreciation expense recorded in the third quarter of 2025 on assets that had a net book value but are no longer in use.
• Amortization of intangibles increased $0.4 million for the third quarter of 2026, compared to the same period in 2025, due to the merger of FSB that closed in November 2025.
• Other expenses decreased $0.6 million for the third quarter of 2026, compared to the same period in 2025, primarily due to the aforementioned acquisition-related expenses.
• The efficiency ratio was 55.3% for the quarter ended September 30, 2026, compared to 61.4% for the same period in 2025. The change in the efficiency ratio is primarily due to a 14.1% increase in net interest income and a 1.2% decrease in non-interest expenses.

Non-interest expense totaled $86.5 million, an increase of $3.6 million or 4.3%, when compared to the same period in 2025.  For the nine months ended September 30, 2026, non-interest 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 non-interest expenses.  For the nine months ended September 30, 2025, non-interest expense was increased by $0.3 million resulting from the aforementioned $0.7 million acquisition-related expenses, partially offset by a $0.3 million reduction resulting from non-recurring adjustments resulting from the Civista Leasing and Finance Division core system conversion. The acquisition-related expense of $0.7 million is recorded in other non-interest expense. The core conversion reduction of $0.3 million is recorded in equipment expense.

• Compensation expense increased $3.2 million for the nine months ended September 30, 2026, compared to the same period in 2025, 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 550 at September 30, 2026, compared with an average number of 523 for the same period in 2025. 
• FDIC assessment decreased $1.0 million for the nine months ended September 30, 2026, compared to the same period in 2025, 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.
• Equipment expense decreased $0.7 million for the nine months ended September 30, 2026, compared to the same period in 2025, mainly due to $0.7 million in depreciation expense recorded in 2025 on assets that had a net book value but are no longer in use.
• Professional fees decreased $1.1 million for the nine months ended September 30, 2026, compared to the same period in 2025, 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 $1.1 million for the nine months ended September 30, 2026, compared to the same period in 2025, due to the merger of FSB that closed in November 2025.
• The efficiency ratio was 57.8% for the nine months ended September 30, 2026, compared to 63.5% for the same period in 2025. The change in the efficiency ratio is primarily due to a 13.4% increase in net interest income and a 16.6% increase in non-interest income, partially offset by a 4.3% increase in non-interest expenses.

Taxes

Civista's effective income tax rate for the third quarter of 2026 was 19.1% compared to 18.5% for the same period in 2025.  

Civista's effective income tax rate for the nine months ended September 30, 2026, was 17.6% compared to 16.2% in the same period in 2025.

Capital

Total shareholders' equity at September 30, 2026, totaled $552.7 million, an increase of $9.3 million from December 31, 2025. The increase reflected a $34.1 million increase in retained earnings mostly offset by increases in accumulated other comprehensive loss of $23.6 million resulting from the change in the unrealized loss on available-for-sale securities portfolio and treasury stock of $2.5 million, mainly due to share repurchases. 

Civista repurchased 82,075 shares in the first nine months ended September 30, 2026.  The current repurchase plan is set to expire in April 2027. For the nine months ended September 30, 2026, Civista liquidated 14,654 shares held by employees, at an average price of $22.00 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 third quarter of 2026 at 1:00 p.m. ET on Thursday, October 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. third 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 diluted common share, provide a greater understanding of ongoing operations and enhance comparability of results with prior periods.

Average Balance Analysis

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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