Civista Bancshares, Inc.

What they do

Civista Bancshares is a registered financial holding company organized under Ohio law in 1987 and registered under the Gramm-Leach-Bliley Act. Its principal subsidiary, Civista Bank, traces to 1884, maintains its main office in Sandusky, Ohio, and operates branch offices in communities across Ohio and Indiana, plus loan production offices in Westlake, Ohio and Fort Mitchell, Kentucky and a leasing office in Pittsburgh. Civista and its wholly owned subsidiaries accounted for 99.8% of the Company's consolidated assets at December 31, 2025.

Revenue drivers

• Net interest income on loans — Loans generated $11,891 thousand of the $14,290 thousand total change in interest income in 2025 versus 2024, split $9,660 thousand volume and $2,231 thousand rate; Civista Leasing & Financing operates as a full-service equipment leasing and financing division of Civista Bank.
• Taxable securities portfolio — Taxable securities contributed $2,327 thousand of the 2025 increase in interest income, split $1,344 thousand volume and $983 thousand rate; First Citizens Investments, Inc., a Wilmington, Delaware subsidiary formed in 2007, holds and manages the securities portfolio.
• Deposit funding and borrowings — Interest expense on savings and interest-bearing demand accounts rose $1,130 thousand in 2025 versus 2024, while certificates of deposit fell $2,737 thousand and short-term Federal Home Loan Bank advances fell $5,467 thousand, producing a net $7,583 thousand reduction in total interest expense.
• Insurance and other fee operations — First Citizens Insurance Agency, Inc. was formed to participate in commission revenue from a third-party insurance agreement; Civista Leasing & Financing's operations are located in Pittsburgh, Pennsylvania.

Recent performance

Second-quarter 2026 net income was $14.3 million, or $0.69 per common share, up $3.3 million or 30.0% from $11.0 million in second-quarter 2025 but down $0.7 million or 4.5% from $15.0 million in first-quarter 2026. Net interest margin expanded 25 basis points year-over-year to 3.89% while cost of funds declined 37 basis points to 194 basis points. Total loans increased $25.2 million, or 0.8%, versus first-quarter 2026, and brokered deposits declined $25.0 million linked quarter and $52.0 million since year-end 2025. Return on Assets was 1.34%, compared to 1.06% for second-quarter 2025, and the 2026 periods include The Farmers Savings Bank merger since November 7, 2025.

Strategy

Management describes continued execution of its strategy, citing disciplined balance sheet management and operational excellence. Civista closed the acquisition of The Farmers Savings Bank on November 6, 2025, adding approximately $268.1 million of total assets, $106.2 million of total loans and leases, $236.1 million of total deposits, and two branches in Medina and Lorain Counties in Northeast Ohio; technology conversions were completed in mid-February 2026. Civista also completed an underwritten common stock offering in July 2025, selling 3,294,120 shares plus 494,118 shares on the overallotment exercise at $21.25 per share. The company is optimizing its funding mix by reducing higher-cost brokered deposits. Dennis Shaffer retires as President and CEO effective August 28, 2026, with Chuck Parcher succeeding him.

Risks

• Acquisition integration risk — The Farmers Savings Bank merger closed November 6, 2025 and technology conversions were completed in mid-February 2026, with onboarding and training of former FSB colleagues still ongoing.
• Interest rate and margin risk — Management identifies changes in interest rates and Federal Reserve monetary policy as factors that may affect interest rates, interest margins, loan demand and interest rate sensitivity.
• Real estate and credit concentration — The company cites adverse changes in the real estate market as a risk that could increase delinquencies and non-performing assets and depress income, earnings and capital.
• Liquidity and funding reliance — Funding includes Federal Home Loan Bank advances, brokered deposits, securities sold under repurchase agreements, federal funds purchased, other borrowings and subordinated debentures, and second-quarter 2026 brokered deposits declined $52.0 million since year-end 2025.

Outlook

Management said Civista delivered a strong second quarter and first half of 2026, reflecting continued execution of its strategy and the strength of its balance sheet. The CEO commentary cited net interest margin expansion, improving funding costs, stable credit quality, and a significantly improved efficiency ratio from a year ago. Management stated it remains focused on prudent growth, sound risk management, strong customer relationships and long-term shareholder value creation, and described the company as well positioned for continued growth as the August 2026 leadership transition approaches.