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

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

PR Newswire

SANDUSKY, Ohio, July 23, 2026

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 HighlightsNet 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, 2026Declared 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%.AssetsTotal 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 & BorrowingsTotal 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 MarginNet 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.CreditProvision 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 IncomeNon-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 ExpenseNon-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.TaxesCivista'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 WebcastCivista 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 BancsharesCivista 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 StatementsThis 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 MeasuresThis 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 June 30,20262025AverageYield/AverageYield/Assets:balanceInterestrate *balanceInterestrate *Interest-earning assets:Loans **$3,243,955$49,8876.17%$3,136,09149,9726.39%Taxable securities ***417,9243,9083.51%404,1043,7513.42%Non-taxable securities ***278,1522,2783.90%277,9312,3383.88%Interest-bearing deposits in other banks52,9194743.59%23,2432103.61%Total interest-earning assets ***$3,992,950$56,5475.67%$3,841,369$56,2715.84%Noninterest-earning assets:Cash and due from financial institutions34,90140,329Premises and equipment, net38,27744,687Accrued interest receivable14,26713,919Intangible assets142,469132,887Bank owned life insurance63,68063,302Other assets52,72559,948Less allowance for loan losses(40,734)(40,546) Total Assets$4,298,535$4,155,895Liabilities and Shareholders' Equity:Interest-bearing liabilities:Demand and savings$1,690,167$5,9971.42%$1,551,856$5,6321.46%Time1,091,4789,8973.64%986,6449,9264.04%Short-term FHLB borrowings107,8238383.12%412,5454,6034.48%Long-term FHLB borrowings64452.85%1,26082.57%Other borrowings3,4219711.38%5,8741238.40%Subordinated debentures104,2931,1204.31%104,1451,1654.49%Total interest-bearing liabilities$2,997,826$17,9542.40%$3,062,324$21,4572.81%Non-interest-bearing deposits703,040652,092Other liabilities36,56840,564Shareholders' equity561,101400,915Total Liabilities and Shareholders' Equity$4,298,535$4,155,895Net interest income and interest rate spread$38,5933.27%$34,8143.03%Net interest margin ***3.89%3.64%* - Average yields are presented on a tax equivalent basis. The tax equivalent effect associated with loans and investments, included in the yields above, was $606 thousand and $622 thousand for the periods ended June 30, 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 $46.7 million and $64.1 million, respectively. These adjustments were also made when calculating the yield on earning assets and the margin.Average Balance Analysis(Unaudited - Dollars in thousands)Six Months Ended June 30,20262025AverageYield/AverageYield/Assets:balanceInterestrate *balanceInterestrate *Interest-earning assets:Loans **$3,248,126$99,1186.15%$3,117,867$97,6186.31%Taxable securities ***425,3017,8623.50%400,5187,3063.37%Non-taxable securities ***281,6954,5813.92%282,1834,6783.90%Interest-bearing deposits in other banks42,8987953.71%21,0814023.84%Total interest-earning assets ***$3,998,020$112,3565.67%$3,821,649$110,0045.77%Noninterest-earning assets:Cash and due from financial institutions37,00441,758Premises and equipment, net39,12845,541Accrued interest receivable14,23213,744Intangible assets142,868133,076Bank owned life insurance63,48463,110Other assets52,20659,271Less allowance for loan losses(41,196)(40,252) Total Assets$4,305,746$4,137,897Liabilities and Shareholders' Equity:Interest-bearing liabilities:Demand and savings$1,672,887$11,4271.38%$1,565,328$11,3601.46%Time1,100,86519,9193.65%973,20219,9144.13%Short-term FHLB borrowings128,1272,1863.44%384,2248,5324.48%Long-term FHLB borrowings712102.78%1,334172.57%Other borrowings3,6661699.32%6,1502688.78%Subordinated debentures104,2712,2294.31%104,1242,3264.50%Total interest-bearing liabilities$3,010,528$35,9402.41%$3,034,362$42,4172.82%Non-interest-bearing deposits699,256661,382Other liabilities38,42243,174Shareholders' equity557,540398,979Total Liabilities and Shareholders' Equity$4,305,746$4,137,897Net interest income and interest rate spread$76,4163.26%$67,5872.95%Net interest margin ***3.87%3.57%* - Average yields are presented on a tax equivalent basis. The tax equivalent effect associated with loans and investments, included in the yields above, was $1.2 million and $1.2 million for the periods ended June 30, 2026 and 2025, respectively.** - Average balance includes nonaccrual loans*** - 2026 and 2025 average yield on investments were calculated by adjusting the average balances of taxable and nontaxable securities by unrealized losses of $44.0 million and $61.6 million, respectively. These adjustments were also made when calculating the yield on earning assets and the margin.Non-interest income(unaudited - dollars in thousands)Three months ended June 30,20262025$ Change% ChangeService charges$1,889$1,564$32520.8%Net gain (loss) on equity securities140(74)214289.2%Net gain on sale of loans and leases1,50184166078.5%ATM/Interchange fees1,5551,4181379.7%Wealth management fees1,4591,32513410.1%Lease revenue and residual income1,404525879167.4%Bank owned life insurance399386133.4%Swap fees353(50)-94.3%Other65755110619.2%Total non-interest income$9,007$6,589$2,41836.7%Non-interest income(unaudited - dollars in thousands)Six months ended June 30,20262025$ Change% ChangeService charges$3,603$3,088$51516.7%Net gain (loss) on equity securities173(103)276268.0%Net gain on sale of loans and leases3,1061,4451,661114.9%ATM/Interchange fees2,9412,7441977.2%Wealth management fees2,8922,6652278.5%Lease revenue and residual income3,0342,42161325.3%Bank owned life insurance789773162.1%Swap fees59125(66)-52.8%Other1,8411,29155042.6%Total non-interest income$18,438$14,449$3,98927.6%Non-interest expense(unaudited - dollars in thousands)Three months ended June 30,20262025$ Change% ChangeCompensation expense$15,737$15,011$7264.8%Net occupancy expense1,5831,41916411.6%Contracted data processing582536468.6%FDIC assessment420689(269)-39.0%State franchise tax599634(35)-5.5%Professional services1,2211,798(577)-32.1%Equipment expense1,7201,764(44)-2.5%ATM/Interchange expense743683608.8%Marketing54228925387.5%Amortization of core deposit intangible696338358105.9%Software maintenance expense1,2351,294(59)-4.6%Other3,5753,02754818.1%Total non-interest expense$28,653$27,482$1,1714.3%Non-interest expense(unaudited - dollars in thousands)Six months ended June 30,20262025$ Change% ChangeCompensation expense$31,966$29,054$2,91210.0%Net occupancy expense3,2063,0531535.0%Contracted data processing1,3121,10320918.9%FDIC Assessment8431,562(719)-46.0%State franchise tax1,1531,160(7)-0.6%Professional services2,8063,888(1,082)-27.8%Equipment expense3,8093,867(58)-1.5%ATM/Interchange expense1,4751,26321216.8%Marketing1,02058543574.4%Amortization of core deposit intangible1,392670722107.8%Software maintenance expense2,7102,5711395.4%Other6,8345,8321,00217.2%Total non-interest expense$58,526$54,608$3,9187.2%End of period loan and lease balances(unaudited - dollars in thousands)June 30,December 31,20262025$ Change% ChangeCommercial and Agriculture$315,479$308,692$6,7872.2%Commercial Real Estate:Owner Occupied389,434385,5473,8871.0%Non-owner Occupied1,229,7311,239,017(9,286)-0.7%Residential Real Estate957,960944,32813,6321.4%Real Estate Construction265,488285,137(19,649)-6.9%Farm Real Estate32,44037,775(5,335)-14.1%Lease financing receivable32,66535,103(2,438)-6.9%Consumer and Other31,70734,447(2,740)-8.0%Total Loans$3,254,904$3,270,046$(15,142)-0.5%End of period deposit balances(unaudited - dollars in thousands)June 30,December 31,20262025$ Change% ChangeNoninterest-bearing demand$695,142$702,032$(6,890)-1.0%Interest-bearing demand380,752400,403(19,651)-4.9%Savings and money market1,271,0891,234,59336,4963.0%Time deposits761,117727,29433,8234.7%Brokered deposits350,143402,142(51,999)-12.9%Total Deposits$3,458,243$3,466,464$(8,221)-0.2%Allowance for Credit Losses(dollars in thousands)Three months ended June 30,20262025Beginning of period$40,536$40,284Charge-offs(174)(1,092)Recoveries10092Provision1,2511,171End of period$41,713$40,455Allowance for Credit Losses(dollars in thousands)Six months ended June 30,20262025Beginning of period$42,020$39,669Charge-offs(980)(2,068)Recoveries190435Provision4832,419End of period$41,713$40,455Allowance for Unfunded Commitments(dollars in thousands)Three months ended June 30,20262025Beginning of period$3,375$3,699Provision519(146)End of period$3,894$3,553Allowance for Unfunded Commitments(dollars in thousands)Six months ended June 30,20262025Beginning of period$3,236$3,380Provision658173End of period$3,894$3,553(dollars in thousands)June 30,December 31,20262025Non-accrual loans$29,865$30,834Restructured loans, accruing5491490+ Days Past Due, Still Accruing103462Total non-performing loans30,51731,310Other Real Estate Owned--Total non-performing assets$30,517$31,310Civista Bancshares, Inc.Financial Highlights(Unaudited, dollars in thousands, except share and per share amounts)Consolidated Condensed Statement of OperationsThree Months EndedSix Months EndedJune 30,June 30,2026202520262025Interest income$56,547$56,271$112,356$110,004Interest expense17,95421,45735,94042,417Net interest income38,59334,81476,41667,587Provision for credit losses1,2511,1714832,419Provision for unfunded commitments519(146)658173Net interest income after provision36,82333,78975,27564,995Non-interest income9,0076,58918,43814,449Non-interest expense28,65327,48258,52654,608Income before taxes17,17712,89635,18724,836Income tax expense2,8621,8815,8833,653Net income14,31511,01529,30421,183Net income availableto common shareholders$14,315$11,015$29,304$21,183Dividends paid per common share$0.18$0.17$0.36$0.34Earnings per common shareBasicNet income$14,315$11,015$29,304$21,183Less allocation of earnings anddividends to participating securities54458472Net income available to commonshareholders - basic$14,261$10,970$29,220$21,111Weighted average common shares outstanding20,786,10115,524,49020,765,91315,506,750Less average participating securities79,00696,69259,19881,784Weighted average number of shares outstandingused to calculate basic earnings per share20,707,09515,427,79820,706,71515,424,966Earnings per common shareBasic$0.69$0.71$1.41$1.37Diluted$0.690.71$1.411.37Selected financial ratios:Return on average assets1.34%1.06%1.37%1.03%Return on average equity10.23%11.02%10.60%10.71%Return on average tangible common equity13.72%16.48%14.25%16.06%Dividend payout ratio26.14%23.96%25.51%24.89%Net interest margin (tax equivalent)3.89%3.64%3.87%3.57%Effective tax rate16.66%14.59%16.72%14.71%Selected Balance Sheet Items(Dollars in thousands, except share and per share amounts)June 30,December 31,20262025(unaudited)(unaudited) Cash and due from financial institutions$61,743$77,320 Investment in time deposits4,1251,165 Investment securities670,179684,600 Loans held for sale8,5087,180 Loans3,254,9043,270,046 Less: allowance for credit losses(41,713)(42,020) Net loans3,213,1913,228,026 Other securities28,95725,942 Premises and equipment, net37,41740,611 Goodwill and other intangibles142,018143,538 Bank owned life insurance63,94263,153 Other assets64,21864,918 Total assets$4,294,298$4,336,453 Total deposits$3,458,243$3,466,464 Short-term Federal Home Loan Bank advances123,500175,000 Long-term Federal Home Loan Bank advances561855 Subordinated debentures104,317104,234 Other borrowings3,1214,090 Accrued expenses and other liabilities37,77142,336 Total liabilities3,727,5133,792,979 Common shares420,922419,769 Retained earnings261,615239,784 Treasury shares(76,082)(75,764) Accumulated other comprehensive loss(39,670)(40,315) Total shareholders' equity566,785543,474 Total liabilities and shareholders' equity$4,294,298$4,336,453June 30,December 31,20262025(unaudited)(unaudited) Shares outstanding at period end20,794,23820,746,474 Book value per share$27.26$26.20 Equity to asset ratio13.20%12.53%Selected asset quality ratios:Allowance for credit losses to total loans1.28%1.28%Non-performing assets to total assets0.71%0.72%Allowance for credit losses to non-performing loans136.69%134.21%Non-performing asset analysisNonaccrual loans$29,865$30,834Restructured loans54914Other real estate owned--90+ Days Past Due, Still Accruing103462Total$30,517$31,310Supplemental Financial Information(Unaudited - dollars in thousands except share data)June 30,March 31,December 31,September 30,June 30,End of Period Balances20262026202520252025AssetsCash and due from banks$61,743$83,525$77,320$62,766$73,858Investment in time deposits4,1252,8801,165735715Investment securities670,179682,462684,600657,189645,228Loans held for sale8,5086,9407,1808,01210,733Loans and leases3,254,9043,229,6673,270,0463,095,9943,151,124Allowance for credit losses(41,713)(40,536)(42,020)(40,254)(40,455)Net Loans3,213,1913,189,1313,228,0263,055,7403,110,669Other securities28,95725,14425,94227,90136,195Premises and equipment, net37,41739,05540,61140,91042,922Goodwill and other intangibles142,018142,774143,538132,276132,631Bank owned life insurance63,94263,54363,15362,75663,555Other assets64,21862,86864,91865,04969,363Total Assets$4,294,298$4,298,322$4,336,453$4,113,334$4,185,869LiabilitiesTotal deposits$3,458,243$3,501,890$3,466,464$3,230,463$3,196,207Federal Home Loan Bank advances - short term123,500100,000175,000232,000433,500Federal Home Loan Bank advances - long term5617398559701,103Subordinated debentures104,317104,276104,234104,213104,172Other borrowings3,1213,5944,0904,6995,379Accrued expenses and other liabilities37,77135,58042,33641,96141,371Total liabilities3,727,5133,746,0793,792,9793,614,3063,781,732Shareholders' EquityCommon shares420,922420,488419,769388,458312,589Retained earnings261,615251,041239,784230,798221,321Treasury shares(76,082)(76,082)(75,764)(75,760)(75,753)Accumulated other comprehensive loss(39,670)(43,204)(40,315)(44,468)(54,020)Total shareholders' equity566,785552,243543,474499,028404,137Total Liabilities and Shareholders' Equity$4,294,298$4,298,322$4,336,453$4,113,334$4,185,869 Shares outstanding at period end20,794,23820,783,34820,746,47419,312,72615,529,342 Book value per share$27.26$26.57$26.20$25.84$26.02 Equity to asset ratio13.20%12.85%12.53%12.13%9.65%June 30,March 31,December 31,September 30,June 30,20262026202520252025Selected asset quality ratios:Allowance for credit losses to total loans1.28%1.26%1.28%1.30%1.28%Non-performing assets to total assets0.71%0.70%0.72%0.55%0.55%Allowance for credit losses to non-performing loans136.69%134.37%134.21%176.52%176.11%Non-performing asset analysisNon-accrual loans$29,865$29,400$30,834$22,615$22,742Restructured loans5495381412790+ Days Past Due, Still Accruing103229462177223Other real estate owned----209Total$30,517$30,167$31,310$22,804$23,181Supplemental Financial Information(Unaudited - dollars in thousands except share data)June 30,March 31,December 31,September 30,June 30,Quarterly Average Balances20262026202520252025Assets:Earning assets$3,992,950$4,003,144$3,939,580$3,829,484$3,841,369Securities696,076718,037694,263676,938682,035Loans3,243,9553,252,3423,197,3273,128,0333,136,091Liabilities and Shareholders' EquityTotal deposits$3,484,685$3,461,202$3,424,018$3,237,025$3,190,592Interest-bearing deposits2,781,6452,765,7732,717,7512,574,1532,538,500Other interest-bearing liabilities216,181257,599256,899383,305523,824Total shareholders' equity561,101553,940525,673472,993400,915Supplemental Financial Information(Unaudited - dollars in thousands)June 30,March 31,December 31,September 30,June 30,End of period loan and lease balances20262026202520252025Commercial and Agriculture$315,479$310,400$308,692$302,407$338,598Commercial Real Estate:Owner Occupied389,434390,786385,547384,176378,248Non-owner Occupied1,229,7311,232,7811,239,0171,216,0311,263,612Residential Real Estate957,960943,425944,328842,362815,408Real Estate Construction265,488254,254285,137278,163277,643Farm Real Estate32,44032,70037,77523,71323,866Lease financing receivable32,66532,69335,10338,96042,758Consumer and Other31,70732,62834,44710,18210,991Total Loans$3,254,904$3,229,667$3,270,046$3,095,994$3,151,124Supplemental Financial Information(Unaudited - dollars in thousands)June 30,March 31,December 31,September 30,June 30,End of period deposit balances20262026202520252025Noninterest-bearing demand$695,142$703,778$702,032$651,934$647,609Interest-bearing demand380,752419,295400,403415,620433,089Savings and money market1,271,0891,291,2531,234,5931,129,9851,100,660Time deposits761,117710,423727,294601,757560,702Brokered deposits350,143377,141402,142431,167454,147Total Deposits$3,458,243$3,501,890$3,466,464$3,230,463$3,196,207Supplemental Financial Information(Unaudited - dollars in thousands except share data)Three Months EndedJune 30,March 31,December 31,September 30,June 30,Income statement20262026202520252025Total interest and dividend income$56,547$55,809$55,741$55,240$56,271Total interest expense17,95417,98619,29020,69521,457Net interest income38,59337,82336,45134,54534,814Provision for credit losses1,251(768)7243781,171Provision for unfunded commitments519139(139)(178)(146)Non-interest income9,0079,4319,8849,6336,589Non-interest expense28,65329,87331,00328,32727,482Income before taxes17,17718,01014,74715,65112,896Income tax expense2,8623,0212,4802,8911,881Net income$14,315$14,989$12,267$12,760$11,015Net income available to common shareholders$14,315$14,989$12,267$12,760$11,015Pre-Provision Net Revenue (PPNR)$18,947$17,381$15,332$15,851$13,921Per share dataEarnings per common shareBasicNet income$14,315$14,989$12,267$12,760$11,015Less allocation of earnings anddividends to participating securities5428486145Net income available to common shareholders - basic$14,261$14,961$12,219$12,699$10,970Weighted average common shares outstanding20,786,10120,745,49920,185,28518,767,30715,524,490Less average participating securities79,00639,16990,28191,74396,692Weighted average number of shares outstanding used to calculate basic earnings per share20,707,09520,706,33020,095,00418,675,56415,427,798Earnings per common shareBasic$0.69$0.72$0.61$0.68$0.71Diluted$0.69$0.72$0.61$0.68$0.71Common shares dividend paid$3,741$3,732$3,283$3,283$2,638Dividends paid per common share0.180.180.170.170.17Three Months EndedJune 30,March 31,December 31,September 30,June 30,Selected financial ratios20262026202520252025Return on average assets1.34%1.41%1.14%1.22%1.06%Return on average equity10.23%10.97%9.26%10.70%11.02%Return on average tangible common equity13.72%14.64%12.72%15.03%16.48%Dividend payout ratio26.14%24.91%27.97%25.00%23.96%Net interest margin (tax equivalent)3.89%3.85%3.69%3.58%3.64%Effective tax rate16.66%16.77%16.82%18.47%14.59%Supplemental Financial Information(Unaudited - dollars in thousands)Three Months EndedJune 30,March 31,December 31,September 30,June 30,Non-interest income20262026202520252025Service charges$1,889$1,714$1,706$1,667$1,564Net gain (loss) on equity securities14033120255(74)Net gain on sale of loans and leases1,5011,6051,5941,450841ATM/Interchange fees1,5551,3861,7221,4351,418Wealth management fees1,4591,4331,4731,4021,325Lease revenue and residual income1,4041,6301,5181,934525Bank owned life insurance399390397666386Swap fees356150-53Other6571,1841,204824551Total non-interest income$9,007$9,431$9,884$9,633$6,589Supplemental Financial Information(Unaudited - dollars in thousands)Three Months EndedJune 30,March 31,December 31,September 30,June 30,Non-interest expense20262026202520252025Compensation expense$15,737$16,229$14,526$15,161$15,011Net occupancy expense1,5831,6231,4101,4661,419Contracted data processing582730672559536FDIC assessment420423493627689State franchise tax599554343536634Professional services1,2211,5851,4671,2251,798Equipment expense1,7202,0892,0322,2051,764ATM/Interchange expense743732710755683Marketing542478410391289Amortization of core deposit intangible696696576318338Software maintenance expense1,2351,4751,4111,4801,294Other3,5753,2596,9533,6043,027Total non-interest expense$28,653$29,873$31,003$28,327$27,482Supplemental Financial Information(Unaudited - dollars in thousands except share data)Three Months EndedJune 30,March 31,December 31,September 30,June 30,Asset quality20262026202520252025Allowance for credit losses:Beginning of period$40,536$42,020$40,254$40,455$40,284CECL Day 1 Adjustment FSB--1,960--Charge-offs(174)(806)(1,064)(662)(1,092)Recoveries100901468392Provision1,251(768)7243781,171End of period$41,713$40,536$42,020$40,254$40,455Allowance for unfunded commitments:Beginning of period$3,375$3,236$3,375$3,553$3,699Charge-offs-----Recoveries-----Provision519139(139)(178)(146)End of period$3,894$3,375$3,236$3,375$3,553RatiosAllowance to total loans1.28%1.26%1.28%1.30%1.28%Allowance to nonperforming assets136.69%134.37%134.21%176.52%174.52%Allowance to nonperforming loans136.69%134.37%134.21%176.52%176.11%Nonperforming assetsNon-accrual loans$29,865$29,400$30,834$22,615$22,742Restructured loans5495381412790+ Days Past Due, Still Accruing103229462177223Total non-performing loans30,51730,16731,31022,80422,972Other Real Estate Owned----209Total non-performing assets$30,517$30,167$31,310$22,804$23,181Three Months EndedJune 30,March 31,December 31,September 30,June 30,Capital and liquidity20262026202520252025Tier 1 leverage ratio11.87%11.57%11.32%10.96%8.80%Tier 1 risk-based capital ratio15.33%15.12%14.51%14.19%11.18%Total risk-based capital ratio18.86%18.67%18.02%17.80%14.73%Tangible common equity ratio (1)10.23%9.85%9.54%9.21%6.70%(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)June 30,March 31,December 31,September 30,June 30,20262026202520252025Tangible Common EquityTotal Shareholder's Equity - GAAP$566,785$552,243$543,474$499,028$404,137Less: Preferred Equity-----Less: Goodwill and intangible assets142,018142,774143,538132,276132,631Tangible common equity (Non-GAAP)$424,767$409,469$399,936$366,752$271,506Total Shares Outstanding20,794,23820,783,34820,746,47419,312,72615,529,342Tangible book value per share$20.43$19.70$19.28$18.99$17.48Tangible AssetsTotal Assets - GAAP$4,294,298$4,298,322$4,336,453$4,113,334$4,185,869Less: Goodwill and intangible assets142,018142,774143,538132,276132,631Tangible assets (Non-GAAP)$4,152,280$4,155,548$4,192,915$3,981,058$4,053,238Tangible common equity to tangible assets10.23%9.85%9.54%9.21%6.70%Reconciliation of Non-GAAP Financial Measures(Unaudited - dollars in thousands except share data)Three Months EndedSix Months EndedJune 30,June 30,Efficiency ratio (non-GAAP):2026202520262025Noninterest expense (GAAP)$28,653$27,482$58,526$54,608 Less: Amortization of intangible assets expense6963391,392670 Less: Acquisition related expenses--4275Noninterest expense (non-GAAP)$27,957$27,143$56,707$53,933Net interest income (GAAP)$38,593$34,814$76,416$67,587 Plus: Taxable equivalent adjustment6066211,2181,243Noninterest income (GAAP)9,0076,58918,43814,449 Less: Net gains (losses) on equity securities140(74)173(103)Net interest income (FTE) plus non-interest income (non-GAAP)$48,066$42,098$95,899$83,382Efficiency ratio (non-GAAP)58.2%64.5%59.1%64.7%Reconciliation of Non-GAAP Financial Measures(Unaudited - dollars in thousands except share data)Three Months EndedJune 30,March 31,December 31,September 30,June 30,Efficiency ratio (non-GAAP):20262026202520252025Noninterest expense (GAAP)$28,653$29,873$31,003$28,327$27,482 Less: Amortization ofintangible assets expense696696576318339 Less: Acquisition related expenses-4273,4246645Noninterest expense (non-GAAP)$27,957$28,750$27,003$27,345$27,138Net interest income (GAAP)$38,593$37,823$36,451$34,545$34,814 Plus: Taxable equivalent adjustment606612620618621Noninterest income (GAAP)9,0079,4319,8849,6336,589 Less: Net gains (losses) onequity securities14033120255(74)Net interest income (FTE) plus non-interest income (non-GAAP)$48,066$47,833$46,835$44,541$42,098Efficiency ratio (non-GAAP)58.2%60.1%57.7%61.4%64.5%Three Months EndedJune 30,March 31,December 31,September 30,June 30,Net interest margin (non-GAAP):20262026202520252025Net interest income (GAAP)$38,593$37,823$36,451$34,545$34,814Tax-equivalent adjustment606612620618621Net interest income (tax-equivalent)39,19938,43537,07135,16335,435Average earning assets (GAAP)$3,992,950$4,003,144$3,939,580$3,829,484$3,841,369Unrealized loss adjustment46,70641,28846,94462,94764,110Adjusted average earning assets4,039,6564,044,4323,986,5243,892,4313,905,479Net interest margin (Non-GAAP)3.89%3.85%3.69%3.58%3.64%