Civista Bancshares Q2 2026 Earnings Call Transcript

Civista Bancshares (NASDAQ: CIVB ) held its second-quarter earnings conference call on Thursday.

Below is the complete transcript from the call.

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Access the full call at Summary Civista Bancshares Inc reported a net income of $14.3 million for Q2 2026, a 30% increase over Q2 2025 but a decline from the previous quarter, with net interest income rising by 2% to $38.6 million.

Strategic initiatives included reducing reliance on brokered funding by $276 million over eight quarters and focusing on core funding, with a decline in brokered deposits by $25 million during Q2.

The company anticipates mid-single-digit loan growth for the remainder of 2026, supported by a strong loan pipeline and reduced payoff levels.

Operational highlights include a 36% increase in pre-provision net revenue, improvement in net interest margin to 3.89%, and maintaining strong credit quality with allowances for credit losses at 1.28%.

Management expressed confidence in capital deployment strategies, focusing on organic growth, technology investments, and potential for M&A, while maintaining strong capital ratios.

This call marked the last earnings call for CEO Dennis Shaffer, with Chuck Parcher set to assume the role.

Management expressed optimism for continued success under new leadership.

Full Transcript Hannah, Operator Good afternoon.

My name is Hannah, and I'll be your moderator for today.

Before we begin, I would like to remind you that this conference call may contain forward-looking statements with respect to the future performance and financial condition of Civista Bancshares Inc that involve risks and uncertainties.

Various factors could cause actual results to be materially different from any future results expressed or implied by such forward-looking statements.

These factors are discussed in the Company's SEC filings, which are available on the Company's website.

The Company disclaims any obligation to update any forward-looking statements made during the call.

Additionally, management may refer to non-GAAP measures, which are intended to supplement, but not substitute, the most directly comparable GAAP measures.

The press release, also available on the Company's website, contains the financial and other quantitative information to be discussed today, as well as the reconciliation of the GAAP to non-GAAP measurements.

This call will be recorded and made available on Civista Bancshares' website at www.

Civv.com.

At the conclusion of Mr.

Shaffer's remarks, he and the Civista management team will take any questions you may have.

Now I will turn the call over to Mr.

Shaffer.

Dennis Shaffer, CEO and President Good afternoon, this is Dennis Shaffer, President and CEO of Civista Bancshares, and I would like to thank you for joining us for our second quarter 2026 earnings call.

I am joined today by Chuck Parcher, EVP of the Company and President of the Bank; Rich Dutton, SVP of the Company and Chief Operating Officer of the Bank; Ian Whinnem, SVP of the Company and Chief Financial Officer of the Bank; and other members of our executive team.

This morning we reported net income for the second quarter of $14.3 million, or $0.69 per diluted share, which represents a $3.3 million or 30% increase over our second quarter in 2025 and a $674,000 decline from our linked quarter.

This also represents an increase in pre-provision net revenue of $5 million, or 36% over our second quarter in 2025 and a $1.6 million or 9% increase over the linked quarter.

Net interest income for the quarter was $38.6 million, which represents an increase of $770,000 or 2% compared to the linked quarter.

The increase was attributable to an increase in our earning asset yield of 1 basis point to 5.67%, while our overall funding costs declined by 2 basis points to 1.94%.

Our net interest margin expanded by 4 basis points to 3.89% as we continued our disciplined approach to managing our asset pricing and funding costs.

Our cost of funds was 1.94% for the quarter, down 37 basis points from the second quarter of 2025 and 2 basis points from the linked quarter, while our cost of deposits was 1.83%, down 13 basis points year over year and 2 basis points higher than our linked quarter.

Sequentially, our cost of core deposits increased by 4 basis points to 1.59% compared to our linked quarter, which was offset by the repricing of $150 million of brokered CDs that matured in late March that carried a weighted average rate of 3.92%.

We were again able to reduce our brokered funding and replace these deposits with $125 million of CDs laddered over the next nine months at an average rate of 3.80%, representing a savings of 12 basis points.

Over the last eight quarters we have reduced our reliance on brokered funding by $276 million or 44%.