Civista Bancshares, Inc. (CIVB, Financial) has reported a robust start to the fiscal year, showcasing significant improvements in key financial metrics during the first quarter. The bank's net interest margin rose to 3.51%, an increase from both 3.22% in the first quarter of the previous year and 3.36% in the fourth quarter of 2024. This improvement reflects the positive impact of strategic deposit initiatives launched last year.
The company's tangible book value per share saw an increase as well, reaching $17.04 from $16.47 in the prior quarter, indicating enhanced value for shareholders. Furthermore, Civista's earnings per share (EPS) for the quarter climbed to 66 cents, marking a notable rise from 63 cents in the preceding quarter and a substantial improvement over the 41 cents recorded in the same period last year.
Driven by a focus on disciplined pricing and deepening customer relationships, Civista experienced deposit growth for the third consecutive quarter. This growth allowed a reduction in reliance on wholesale funding, contributing to a 9 basis point increase in loan yields and an 11 basis point decrease in overall funding costs since the fourth quarter of 2024.
Reflecting its strong financial position and commitment to shareholder value, Civista recently announced an increase in its quarterly dividend. The bank's emphasis on credit quality and meeting the demand for housing and construction financing continues to align with its goal of providing comprehensive support to customers and communities.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for Civista Bancshares Inc (CIVB, Financial) is $24.25 with a high estimate of $26.00 and a low estimate of $22.50. The average target implies an upside of 16.70% from the current price of $20.78. More detailed estimate data can be found on the Civista Bancshares Inc (CIVB) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, Civista Bancshares Inc's (CIVB, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Civista Bancshares Inc (CIVB, Financial) in one year is $20.85, suggesting a upside of 0.34% from the current price of $20.78. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Civista Bancshares Inc (CIVB) Summary page.
CIVB Key Business Developments
Release Date: January 30, 2025
- Net Income (Q4 2024): $9.9 million or $0.63 per diluted share, an 18% increase over the previous quarter.
- Net Income (2024): $31.7 million or $2.01 per diluted share, compared to $43 million or $2.73 per diluted share in 2023.
- Return on Assets (ROA) (Q4 2024): 0.97%.
- Return on Assets (ROA) (2024): 0.80%.
- Non-Interest Income (2024): Increased by $585,000 compared to 2023.
- Loan and Lease Portfolio Growth (Q4 2024): Annualized rate of 4.9%.
- Loan and Lease Portfolio Growth (2024): 7.7%.
- Core Deposit Growth (Q4 2024): Increased by over $36 million.
- Net Interest Income (Q4 2024): $31.4 million, a 7.3% increase compared to the previous quarter.
- Net Interest Margin (Q4 2024): Expanded by 20 basis points to 3.36%.
- Net Interest Margin (2024): 3.21%.
- Non-Interest Expense (Q4 2024): $28.3 million, a 1.1% increase from the previous quarter.
- Efficiency Ratio (Q4 2024): 68.3%.
- Total Loans and Leases Growth (2024): $219.5 million, a growth rate of 7.7%.
- Total Deposits Growth (2024): $226.8 million or 7.6%.
- Loan to Deposit Ratio (Q4 2024): 96%.
- Allowance for Credit Losses to Total Loans (Dec 31, 2024): 1.29%.
- Effective Tax Rate (Q4 2024): 13.1%.
- Effective Tax Rate (2024): 13.4%.
- Tier One Leverage Ratio (Dec 31, 2024): 8.60%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Civista Bancshares Inc (CIVB, Financial) reported a net income increase of $1.5 million or 18% for the fourth quarter of 2024 compared to the previous quarter.
- The company successfully replaced $5.2 million of 2023 non-interest income losses with increased service charges, gains on mortgage sales, and lease and loan originations.
- Loan and lease portfolio grew at an annualized rate of 4.9% during the fourth quarter and 7.7% for the year, indicating strong loan demand.
- Core deposit funding grew organically by over $36 million during the quarter, reducing reliance on brokered funding.
- Net interest income for the quarter increased by $2.1 million or 7.3%, with a margin expansion of 20 basis points to 3.36%.
Negative Points
- Net income for the year decreased to $31.7 million from $43 million in 2023, reflecting a decline in annual earnings.
- Non-interest income decreased by $671,000 or 6.9% from the linked quarter, primarily due to a decline in lease revenue and residual fees.
- Allowance for credit losses to non-performing loans declined from 246% to 124%, attributed to two loans totaling $16.4 million downgraded to non-performing.
- Non-interest expense increased by $4.9 million or 4.6% year-over-year, driven by compensation expenses and professional fees.
- Efficiency ratio for the quarter was 68.3%, which is higher than desired, indicating room for improvement in cost management.
