CIVISTA BANCSHARES, INC.
For the period ended Jun 30, 2025. Filed Aug 6, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 6, 2025
CIVB$28.36+0.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-07.
0000950170-25-065834
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-06.
0000950170-25-104198
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 75 previous paragraphs and 102 current paragraphs.
38 unchanged; 34 reworded; 21 added; 3 removed; 0 previous and 9 current paragraphs rearranged.
Tables are not compared: 7 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (21)
Current report
significant changes to the size, structure, powers and operations of the federal government, changes to U.S. economic policies, and uncertainties regarding the potential for these changes may cause economic disruptions that could, in turn, adversely impact our business, results of operations and financial condition;
Current report
our ability to appropriately maintain effective internal control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act of 2002, as necessary to ensure the accurate reporting of our financial results;
Current report
Recent Developments
Current report
Agreement and Plan of Merger with The Farmers Savings Bank
Current report
On July 10, 2025, CBI and Civista entered into an Agreement and Plan of Merger (the “Merger Agreement”) with The Farmers Savings Bank, an Ohio-chartered bank headquartered in Spencer, Ohio (“Farmers”). Upon the terms and subject to the conditions of the Merger Agreement, at the effective time of the merger (the “Effective Time”), Farmers will merge with and into Civista, with Civista being the surviving bank in the merger (the “FSB Merger”). The acquisition of Farmers will add two branches in Medina and Lorain Counties in Northeast Ohio, as well as approximately $183 million in low-cost core deposits. As of March 31, 2025, Farmers reported total assets of $285 million and net loans of $104 million.
Current report
Under the terms and subject to the conditions of the Merger Agreement, which has been unanimously approved by the Boards of Directors of both companies, CBI agreed to pay $34.925 million in cash and issue 1,434,491 common shares, in aggregate, for all of the outstanding Farmers shares, subject to potential adjustment based on Farmers’ equity prior to closing being $56.0 million. This implies an aggregate deal value of approximately $70.4 million based on the closing price of CBI’s common shares on July 9, 2025 of $24.72.
Current report
The FSB Merger is expected to close in the fourth quarter of 2025, subject to the required approval of the Farmers shareholders, receipt of all required regulatory approvals and fulfillment of other customary closing conditions.
Current report
Offering of Common Shares
Current report
On July 10, 2025, CBI announced an underwritten public offering of up to a maximum of 3,788,238 of its common shares. CBI subsequently closed on the sale of 3,294,120 common shares on July 14, 2025, and the sale of an additional 494,118 common shares on July 16, 2025 pursuant to the underwriters’ exercise of their overallotment option, at the public offering price of $21.25 per share. The aggregate net proceeds from the Offering to CBI were approximately, $76.0 million, after deducting expenses and the underwriting discount. CBI plans to use the net proceeds from the offering for general corporate purposes, which may include supporting organic growth opportunities and future strategic transactions.
Current report
During the first six months of 2025, provisions made to the allowances for credit losses and off-balance sheet credit exposures totaled $2,592, compared to a provision of $3,647 during the same period in 2024. The decrease in the provision for the first six months of 2025 was primarily the result of a decrease in specific reserves related to one large credit that made a significant paydown during the six months ended June 30, 2025. Commercial & Agriculture loan delinquencies decreased slightly during the first six months of 2025, primarily in the 30-59 days past due category, which decreased from $825 at December 31, 2024 to $114 at June 30, 2025. Total Residential Real Estate loans past due decreased from $9,411 at December 31, 2024 to $3,290 as of June 30, 2025, mainly due to a decrease in delinquencies in 1-4 family first lien loans.
Current report
Net charge-offs for the first six months ended June 30, 2025 totaled $1,633, compared to net charge-offs of $1,083 for the same period of 2024. For the first six months ended June 30, 2025, the Company charged off a total of 31 loans and leases, consisting of 11 Commercial & Agriculture loans totaling $435, seven Lease Financing Receivables totaling $152, two Commercial Real Estate –
Current report
Six Months Ended June 30, 2025 and 2024
Current report
The Company had net income of $21,183 for the six months ended June 30, 2025, an increase of $7,759 from net income of $13,424 for the same six months of 2024. Basic and diluted earnings per common share were $1.37 for the six months ended June 30, 2025, compared to $0.85 for the same period in 2024. For the six months ended June 30, 2025, net income was increased by $757 from non-recurring adjustments resulting from the CLF core system conversion. The primary reasons for the changes in net income are explained below.
Current report
Net interest income for the six months ended June 30, 2025 was $67,587, an increase of $11,464, from $56,123 for the same six months of 2024. This increase was a result of an increase of $9,283 in total interest and dividend income, coupled with a $2,181 decrease in total interest expense. Total interest-earning assets averaged $3,821,649 during the six months ended June 30, 2025, an increase of $235,469 from $3,586,180 for the same period of 2024. The Company’s total average interest-bearing liabilities increased from $2,766,811 during the six months ended June 30, 2024 to $3,034,362 during the six months ended June 30, 2025. The Company’s fully tax equivalent net interest margin for the six months ended June 30, 2025 and 2024 was 3.57% and 3.16%, respectively. Net interest income was increased $1,621 in the six months ended June 30, 2025, resulting from non-recurring adjustments from the CLF core system conversion.
Current report
Total interest and dividend income increased $9,283 to $110,004 for the six months ended June 30, 2025. This change was the result of an increase in the average balance of loans, accompanied by a higher yield on the portfolio. The average balance of loans increased by $195,663, or 6.7%, to $3,117,867 for the six months ended June 30, 2025, as compared to $2,922,204 for the six months ended June 30, 2024. The loan yield increased to 6.31% for 2025, from 6.15% in 2024.
Current report
Interest on taxable securities increased $1,302 to $7,306 for the six months ended June 30, 2025, compared to $6,004 for the same period in 2024. The average balance of taxable securities increased $49,362 to $400,518 for the six months ended June 30, 2025, as compared to $351,156 for the six months ended June 30, 2024. The yield on taxable securities increased 31 basis points to 3.37% for 2025, compared to 3.06% for 2024. Interest on tax-exempt securities decreased $69 to $4,678 for the six months ended June 30, 2025, compared to $4,747 for the same period in 2024. The average balance of tax-exempt securities decreased $9,575 to $282,183 for the six months ended June 30, 2025, as compared to $291,758 for the six months ended June 30, 2024. The yield on tax-exempt securities increased 4 basis points to 3.90% for 2025, compared to 3.86% for 2024.
Current report
Total interest expense decreased $2,181, or 4.9%, to $42,417 for the six months ended June 30, 2025, compared to $44,598 for the same period in 2024. The change in interest expense can be attributed to a decrease in rate, mostly offset by an increase in the average balance of interest-bearing liabilities. For the six months ended June 30, 2025, the average balance of interest-bearing liabilities increased $267,551 to $3,034,362, compared to $2,766,811 for the six months ended June 30, 2024. Interest incurred on deposits decreased $218 to $31,274 for the six months ended June 30, 2025, compared to $31,492 for the same period in 2024. The average balance of interest-bearing deposits increased by $262,529 for the six months ended June 30, 2025, as compared to the same period in 2024, and the rate paid on demand and savings accounts increased from 1.04% in 2024 to 1.46% in 2025. The rate paid on time deposits decreased from 5.38% in 2024 to 4.13% in 2025. In addition, for the six months ended June 30, 2025, the average balance of short-term FHLB balances decreased $455 to $384,224 from $384,679 compared to the same period in 2024. The rate paid on subordinated debentures decreased 31 basis points for the six months ended June 30, 2025, as compared to the same period in 2024.
Current report
**Average balance includes nonaccrual loans.
Current report
Noninterest income for the six months ended June 30, 2025 and 2024 was as follows:
Current report
Total noninterest income for the six months ended June 30, 2025 was $14,449, a decrease of $4,185, or 22.5%, from $18,634 for the same period of 2024. Lease revenue and residual income decreased $2,782 for the six months ended June 30, 2025, compared to the same period of 2024, mainly due to stronger lease originations in 2024 coupled with a one-time non-recurring adjustment decreasing leasing revenue by $1,044 associated with CLF's core system conversion. Other income decreased $1,277 for the six months ended June 30, 2025, compared to the same period of 2024, mostly related to lower fee revenue from CLF.
Current report
The components of noninterest expense for the six month periods ended June 30, 2025 and 2024 are as follows:
Removed paragraphs (3)
Previous report
During the first three months of 2025, provisions made to the allowances for credit losses and off-balance sheet credit exposures totaled $1,567, compared to a provision of $1,992 during the same period in 2024. The decrease in provision is primarily the result of a recapture of credit losses on commercial and agriculture resulting from a decrease in specific reserves related to one large credit that made a significant paydown during the first quarter of 2025. Commercial and agriculture delinquencies increased significantly during the quarter, primarily in the 30-59 days past due category, which increased from $825 at December 31, 2024 to $9,315 at March 31, 2025; however, this had limited impact on required reserves as $7,704 of the 30-59 days past due balance related to two large credits that were on nonaccrual and individually evaluated as of both March 31, 2025 and December 31, 2024. At December 31, 2024 these credits were current. That recapture of credit losses on commercial and agriculture was offset by provision expense to restore the reserves on commercial real estate non-owner occupied after recognizing $800 in charge-offs during the quarter and to fund additional reserves on the residential real estate and real estate construction segments resulting from slower prepayment speed and higher unemployment forecast assumptions.
Previous report
Bank owned life insurance ("BOLI") increased $387 from December 31, 2024 to March 31, 2025. The increase was the result of increases in the cash surrender value of the underlying insurance policies.
Previous report
Accrued expenses and other liabilities decreased $5,721 from December 31, 2024 to March 31, 2025. The decrease was due to a decrease in accrued interest on brokered CDs of $3,019 as a result of interest payments in the first quarter of 2025; and a decrease in accrued commissions and incentives of $2,730 relating to accrued earned commissions and performance incentives being paid in the first quarter of 2025 .
Reworded paragraphs (34)
Previous wording
The following discussion focuses on the consolidated financial condition of the Company at March 31, 2025 compared to December 31, 2024, and the consolidated results of operations for the three month period ended March 31, 2025, compared to the same period in 2024. This discussion should be read in conjunction with the unaudited consolidated financial statements and notes included in this Quarterly Report on Form 10-Q.
Current wording
The following discussion focuses on the consolidated financial condition of the Company at June 30, 2025 compared to December 31, 2024, and the consolidated results of operations for the three and six month ended June 30, 2025, compared to the same period in 2024. This discussion should be read in conjunction with the unaudited consolidated financial statements and notes included in this Quarterly Report on Form 10-Q.
Previous wording
This Quarterly Report on Form 10-Q may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), relating to such matters as financial condition, anticipated operating results, cash flows, business line results, credit quality expectations, prospects for new lines of business, economic trends (including interest rates) and similar matters. Forward-looking statements reflect our expectations, estimates or projections concerning future results or events. These statements are generally identified by the use of forward-looking words or phrases such as “believe,” “belief,” “expect,” “anticipate,” “may,” “could,” “intend,” “intent,” “estimate,” “plan,” “foresee,” “likely,” “will,” “should” or other similar words or phrases. Forward-looking statements are not guarantees of performance and are inherently subject to known and unknown risks, uncertainties and assumptions that are difficult to predict and could cause our actual results, performance or achievements to differ materially from those expressed in or implied by the forward-looking statements. Such forward-looking statements could include, but are not limited to:
Current wording
This Quarterly Report on Form 10-Q may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the Private Securities Litigation Reform Act of 1995, relating to such matters as financial condition, anticipated operating results, cash flows, business line results, credit quality expectations, prospects for new lines of business, economic trends (including interest rates) and similar matters. Forward-looking statements reflect our expectations, estimates or projections concerning future results or events. These statements are generally identified by the use of forward-looking words or phrases such as “believe,” “belief,” “expect,” “anticipate,” “may,” “could,” “intend,” “intent,” “estimate,” “plan,” “foresee,” “likely,” “will,” “should” or other similar words or phrases. Forward-looking statements are not guarantees of performance and are inherently subject to known and unknown risks, uncertainties and assumptions that are difficult to predict and could cause our actual results, performance or achievements to differ materially from those expressed in or implied by the forward-looking statements. Such forward-looking statements could include, but are not limited to:
Previous wording
risks inherent in pursuing strategic growth initiatives, including integration and other risks involved in past and possible future acquisitions;
Current wording
risks inherent in pursuing strategic growth initiatives, including integration and other risks involved in past, pending, and possible future acquisitions;
Previous wording
other risks identified from time-to-time in the Company’s other public documents on file with the SEC, including those risks identified in “Item 1A. Risk Factors” of Part I of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024.
Current wording
other risks identified from time-to-time in the Company’s other public documents on file with the SEC, including those risks identified in “Item 1A. Risk Factors” of Part I of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as supplement by Item 1A. Risk Factors” of Part II of the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2025, and as further supplemented by “Item 1A. Risk Factors” of Part II of this Quarterly Report on Form 10-Q.
Previous wording
Total assets of the Company at March 31, 2025 were $4,146,717 compared to $4,098,469 at December 31, 2024, an increase of $48,248, or 1.2%. The increase in total assets was mainly due to increases in net loans of $22,191 and cash and cash equivalents of $27,301. These increases were partially offset by decreases in available-for-sale securities of $1,922, premises and equipment of $2,059, and swap assets of $2,463. Total liabilities at March 31, 2025 were $3,749,283 compared to $3,709,967 at December 31, 2024, an increase of $39,316, or 1.1%. The increase in total liabilities was primarily attributable to increases in total deposits of $27,018 and short-term FHLB advances of $21,000, partially offset by decreases in swap liabilities of $2,723 and accrued expenses and other liabilities of $5,721.
Current wording
Total assets of the Company at June 30, 2025 were $4,185,869 compared to $4,098,469 at December 31, 2024, an increase of $87,400, or 2.1%. The increase in total assets was mainly due to increases in net loans of $69,108, loans held for sale of $10,068, and cash and cash equivalents of $10,703. These increases were partially offset by decreases in available-for-sale securities of $5,157, premises and equipment of $4,244, and swap assets of $2,178. Total liabilities at June 30, 2025 were $3,781,732 compared to $3,709,967 at December 31, 2024, an increase of $71,765, or 1.9%. The increase in total liabilities was primarily attributable to a increase in short-term FHLB advances of $94,500, partially offset by decreases in total deposits of $15,663 and swap liabilities of $4,608.
Previous wording
Loans held for sale increased $3,659, or 550.2%, since December 31, 2024. The increase was due to increases in both the number of loans and average loan balances held for sale. At March 31, 2025, 16 loans totaling $4,324 were held for sale as compared to 6 loans totaling $665 at December 31, 2024.
Current wording
Loans held for sale increased $10,068 since December 31, 2024. The increase was due to increases in both the number of loans and average loan balances held for sale. At June 30, 2025, 43 loans totaling $10,733 were held for sale as compared to 6 loans totaling $665 at December 31, 2024.
Previous wording
Net loans have increased $22,191, or 0.7%, since December 31, 2024. The increase at March 31, 2025 can be attributed to increases in four categories, primarily Commercial Real Estate – Non-Owner Occupied and Residential Real Estate, partially offset by a decrease in Real Estate Construction. At March 31, 2025, the net loan to deposit ratio was 95.8% compared to 95.9% at December 31, 2024.
Current wording
Net loans have increased $69,108, or 2.3%, since December 31, 2024. The increase at June 30, 2025 was mainly attributed to increases in two categories, Commercial Real Estate – Non-Owner Occupied and Residential Real Estate, partially offset by a decrease in Real Estate Construction. At June 30, 2025, the loan to deposit ratio was 98.6% compared to 95.9% at December 31, 2024.
Previous wording
Reserves on the lease financing receivables portfolio decreased slightly during the first quarter of 2025, consistent with the slight decrease in the outstanding balance of lease financing receivables from December 31, 2024 to March 31, 2025, maintaining a consistent percentage of reserves to lease balance. Total delinquencies on lease financing receivables increased from December 31, 2024 to March 31, 2025; however, the severity of delinquencies improved. Lease financing receivables 30-59 days past due increased, while the balance of 60-89 days past due and 90 days or greater past due both decreased. Nonaccrual lease finance receivables also decreased from $1,238 at December 31, 2024 to $470 at March 31, 2025.
Current wording
Reserves on the Lease Financing Receivables portfolio decreased at June 30, 2025, primarily due to less charge-offs and minimal balance growth, maintaining a consistent percentage of reserves to lease balance. Total delinquencies on Lease Financing Receivables decreased from December 31, 2024 to June 30, 2025. Lease Financing Receivables 30-59 days past due and 60-89 days past due decreased from $926 to $255, while the balance of 90 days or greater past due increased slightly from $909 to $924. Nonaccrual Lease Financing Receivables decreased from $1,238 at December 31, 2024 to $799 at June 30, 2025.
Previous wording
Net charge-offs for the first three months of 2025 totaled $633, compared to net charge-offs of $353 for the same period of 2024. For the first three months of 2025, the Company charged off a total of 13 loans, consisting of three Commercial & Agriculture loans totaling $72, four Lease Financing Receivables totaling $90, one Commercial Real Estate – Non-Owner Occupied loan for $800, and five Consumer and Other loans totaling $14. The Commercial Real Estate - Non-Owner Occupied charge-off of $800 is related to a loan that was previously identified and actively monitored by management, classified as nonaccrual and individually evaluated as of both December 31, 2024 and March 31, 2025. In addition, during the first three months of 2025, the Company had recoveries on previously charged-off Commercial & Agriculture loans of $291, Commercial Real Estate – Owner Occupied loans of $5, Residential Real Estate loans of $14, Leasing Finance Receivables of $25 and Consumer and Other loans of $8. For each loan category, as well as in total, the percentage of net charge-offs to loans was less than one percent. Each of these factors was considered by management as part of the examination of both the level and mix of the allowance by credit type as well as the overall level of the allowance.
Current wording
Non-Owner Occupied loans totaling $1,350, eight Consumer and Other loans totaling $16 and three Residential Real Estate totaling $115. The Commercial Real Estate - Non-Owner Occupied charge-off of $1,350 is related to two loans that were previously identified and actively monitored by management, classified as nonaccrual and individually evaluated as of both December 31, 2024 and June 30, 2025, In addition, during the six months ended June 30, 2025, the Company had recoveries on previously charged-off Commercial & Agriculture loans of $335, Commercial Real Estate – Non-Owner Occupied loans of $3, Residential Real Estate loans of $42, Leasing Financing Receivables of $42 and Consumer and Other loans of $13. For each loan category, as well as in total, the percentage of net charge-offs to loans was less than one percent. Each of these factors was considered by management as part of the examination of both the level and mix of the allowance by credit type as well as the overall level of the allowance.
Previous wording
Larger (greater than $350) Commercial & Agricultural and Commercial Real Estate loan relationships, as well as Residential Real Estate and Consumer loans and Lease financing receivables that are part of a larger relationship are individually evaluated on a quarterly basis, when they do not share similar risk characteristics with the collectively evaluated pools. These loans are analyzed to determine if it is probable that all amounts will not be collected according to the contractual terms of the loan agreement. If management determines that the value of the loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through an allowance estimate or a charge-off to the allowance. The Company’s policy for recognizing interest income on individually evaluated loans does not differ from its overall policy for interest recognition. Loans held for sale are excluded from consideration as impaired. Loans are generally moved to nonaccrual status when 90 days or more past due. Loans, or portions thereof, are charged-off when deemed uncollectible. The allowance for credit losses as a percent of total loans was 1.30% at March 31, 2025 and 1.29% at December 31, 2024.
Current wording
Larger (greater than $350) Commercial & Agricultural and Commercial Real Estate loan relationships, as well as Residential Real Estate and Consumer loans and Lease Financing Receivables that are part of a larger relationship are individually evaluated on a quarterly basis, when they do not share similar risk characteristics with the collectively evaluated pools. These loans are analyzed to determine if it is probable that all amounts will not be collected according to the contractual terms of the loan agreement. If management determines that the value of the loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through an allowance estimate or a charge-off to the allowance. The Company’s policy for recognizing interest income on individually evaluated loans does not differ from its overall policy for interest recognition. Loans held for sale are excluded from consideration as individually evaluated. Loans are generally moved to nonaccrual status when 90 days or more past due. Loans, or portions thereof, are charged-off when deemed uncollectible. The allowance for credit losses as a percent of total loans was 1.28% at June 30, 2025 and 1.29% at December 31, 2024.
Previous wording
The available-for-sale securities portfolio decreased by $1,922, from $648,067 at December 31, 2024 to $646,145 at March 31, 2025. Management continually evaluates our securities portfolio in response to established asset/liability management objectives, changing market conditions that could affect profitability, and the level of interest rate risk to which the Company is exposed. These evaluations may cause the Company to change the level of funds it deploys into investment securities and change the composition of its investment securities portfolio. As of March 31, 2025, the Company was in compliance with all pledging requirements.
Current wording
The available-for-sale securities portfolio decreased by $5,157, from $648,067 at December 31, 2024 to $642,910 at June 30, 2025. Management continually evaluates our securities portfolio in response to established asset/liability management objectives, changing market conditions that could affect profitability, and the level of interest rate risk to which the Company is exposed. These evaluations may cause the Company to change the level of funds it deploys into investment securities and change the composition of its investment securities portfolio. As of June 30, 2025, the Company was in compliance with all pledging requirements.
Previous wording
Premises and equipment, net, decreased $2,059 from December 31, 2024 to March 31, 2025. The decrease was the result of depreciation of $1,833 and disposals of $76, partially offset by purchases of $161. The decrease in depreciation was mainly attributable to leasing operations as operating leases mature. Since mid-2024, new lease originations have primarily consisted of finance leases which are recorded in loans on the Consolidated Balance Sheets.
Current wording
Premises and equipment, net, decreased $4,244 from December 31, 2024 to June 30, 2025. The decrease was the result of depreciation of $4,644 and disposals of $76, partially offset by purchases of $476. The decrease in depreciation was mainly attributable to leasing operations as operating leases mature. Since mid-2024, new lease originations have primarily consisted of finance leases which are recorded in Loans on the Consolidated Balance Sheets.
Previous wording
Swap assets decreased $2,463 from December 31, 2024 to March 31, 2025. The decrease was primarily the result of a decline in market value.
Current wording
Swap assets decreased $2,178 from December 31, 2024 to June 30, 2025. The decrease was primarily the result of a decline in market value.
Previous wording
The Company had approximately $456,569 and $431,713 of uninsured deposits as of March 31, 2025 and December 31, 2024, respectively. Uninsured deposit amounts are estimated based on the portions of customer account balances that exceed the FDIC insurance limit of $250.
Current wording
The Company had approximately $457,130 and $431,713 of uninsured deposits as of June 30, 2025 and December 31, 2024, respectively. Uninsured deposit amounts are estimated based on the portions of customer account balances that exceed the FDIC insurance limit of $250.
Previous wording
Total deposits at March 31, 2025 increased $27,018 from December 31, 2024. Noninterest-bearing deposits decreased $46,411 from December 31, 2024, while interest-bearing deposits, including savings and time deposits, increased $73,429 from December 31, 2024. The decrease in noninterest-bearing deposits was primarily due to a $62,499 decrease in noninterest-bearing business accounts mainly due to seasonality, as the first quarter of each year normally sees a decline in business accounts primarily due to tax payments, partially offset by an increase of $11,300 in noninterest-bearing public funds accounts. The increase in interest-bearing demand deposits was primarily due to an increase of $56,267 in interest-bearing public funds accounts, slightly offset by a decrease of $6,276 in Jumbo NOW accounts. The $19,506 increase in savings and money market accounts was primarily due to a $41,791 increase in business money market accounts, and a $5,726 increase in statement savings accounts, mostly offset by a decrease of $22,682 in reciprocal deposits. The $45,956 increase in time deposits was due to increases of $17,569 in jumbo time deposits, $15,622 in retail time deposits, and $19,689 in time certificates over $250, which were slightly offset by a decrease if $7,611 in reciprocal time deposits. The year-to-date average balance of total deposits increased $252,894, compared to the average balance for the same period in 2024, mainly due to a increases of $142,265 in the average balance of time deposits and $110,629 in the average balance of demand and savings, partially offset by a $41,767 decrease in the average balance of noninterest-bearing deposits.
Current wording
Total deposits at June 30, 2025 decreased $15,663 from December 31, 2024. Noninterest-bearing deposits decreased $47,485 from December 31, 2024, while interest-bearing deposits, including savings and money markets, time deposits, and brokered deposits, increased $31,822 from December 31, 2024. The decrease in noninterest-bearing deposits was primarily due to a $51,899 decrease in noninterest-bearing business accounts, partially offset by an increase of $9,917 in noninterest-bearing public funds accounts. The increase in interest-bearing demand deposits was primarily due to an increase of $27,858 in interest-bearing public funds accounts, slightly offset by a decrease of $6,443 in Jumbo NOW accounts. The $26,314 decrease in savings and money market accounts was primarily due to a $36,603 decrease in ICS demand and money market accounts, and a $8,325 decrease in retail money market savings, mostly offset by an increase of $20,115 in business money market savings. The $90,748 increase in time deposits was due to increases of $66,090 in jumbo time deposits and a $29,029 increase in retail time deposits, which were slightly offset by a decrease of $5,481 in reciprocal time deposits. The year-to-date average balance of total deposits increased $216,105, compared to the average balance for the same period in 2024, mainly due to a increases of $203,964 in the average balance of demand and savings deposits and $58,565 in time deposits, partially offset by a $46,424 decrease in the average balance of noninterest-bearing deposits.
Previous wording
Short-term FHLB advances increased $21,000 from December 31, 2024 to March 31, 2025 for purposes of funding loan growth prior to receiving one large deposit on March 31, 2025. The short-term advance was paid off the following day.
Current wording
Short-term FHLB advances increased $94,500 from December 31, 2024 to June 30, 2025 for purposes of funding loan growth.
Previous wording
Swap liabilities decreased $2,723 from December 31, 2024 to March 31, 2025. The decrease was the result of a decrease in fair value of swap liabilities.
Current wording
Swap liabilities decreased $4,608 from December 31, 2024 to June 30, 2025. The decrease was the result of a decrease in fair value of swap liabilities.
Previous wording
Shareholders’ equity at March 31, 2025 was $397,434, or 9.6% of total assets, compared to $388,502, or 9.5% of total assets, at December 31, 2024. The increase was as a result of net income of $10,168 and an increase in the fair value of securities, net of tax, of $1,408, partially offset by dividends paid on common shares of $2,632.
Current wording
Shareholders’ equity at June 30, 2025 was $404,137, or 9.7% of total assets, compared to $388,502, or 9.5% of total assets, at December 31, 2024. The increase was a result of net income of $21,183, partially offset by dividends paid on common shares of $5,270.
Previous wording
Total outstanding common shares at March 31, 2025 were 15,519,072, which increased from 15,487,667 common shares outstanding at December 31, 2024. Common shares outstanding increased due to the grant of 39,587 restricted common shares to certain officers under the Company’s 2024 Incentive Plan, partially offset by 8,182 common shares surrendered by officers to the Company to pay taxes upon vesting of restricted shares.
Current wording
Total outstanding common shares at June 30, 2025 were 15,529,342, which increased from 15,487,667 common shares outstanding at December 31, 2024. Common shares outstanding increased due to the grant of 49,857 restricted common shares to certain officers under the Company’s 2024 Incentive Plan, partially offset by 8,182 common shares surrendered by officers to the Company to pay taxes upon vesting of restricted shares.
Previous wording
The Company had net income of $10,168 for the three months ended March 31, 2025, an increase of $3,808 from net income of $6,360 for the same period of 2024. Basic and diluted earnings per common share were $0.66 for the quarter ended March 31, 2025, compared to $0.41 for the same period of 2024. The primary reasons for the changes in net income are explained below.
Current wording
The Company had net income of $11,015 for the three months ended June 30, 2025, an increase of $3,951 from net income of $7,064 for the same period of 2024. Basic and diluted earnings per common share were $0.71 for the quarter ended June 30, 2025, compared to $0.45 for the same period of 2024. In the second quarter of 2025, net income was increased by $757 from non-recurring adjustments resulting from the Civista Leasing and Finance ("CLF") division's core system conversion. The primary reasons for the changes in net income are explained below.
Previous wording
Net interest income for the three months ended March 31, 2025 was $32,773, an increase of $4,401 from $28,372 for the same period of 2024. This increase was a result of an increase of $3,605 in total interest and dividend income, coupled with a $796 decrease in total interest expense. Total interest-earning assets averaged $3,801,709 during the three months ended March 31, 2025, an increase of $249,157 from $3,552,552 for the same period of 2024. The Company’s total average interest-bearing liabilities increased from $2,720,586 during the three months ended March 31, 2024 to $2,999,661 during the three months ended March 31, 2025. The Company’s fully tax equivalent net interest margin for the three months ended March 31, 2025 and 2024 was 3.51% and 3.22%, respectively.
Current wording
Net interest income for the three months ended June 30, 2025 was $34,814, an increase of $7,063 from $27,751 for the same period of 2024. This increase was a result of an increase of $5,678 in total interest and dividend income, coupled with a $1,385 decrease in total interest expense. Total interest-earning assets averaged $3,841,369 during the three months ended June 30, 2025, an increase of $221,560 from $3,619,809 for the same period of 2024. The Company’s total average interest-bearing liabilities increased from $2,813,034 during the three months ended June 30, 2024 to $3,062,324 during the three months ended June 30, 2025. The Company’s fully tax equivalent net interest margin for the three months ended June 30, 2025 and 2024 was 3.64% and 3.09%, respectively. Net interest income was increased $1,621 in the second quarter of 2025, resulting from non-recurring adjustments from the CLF core system conversion.
Previous wording
Total interest and dividend income was $53,733 for the three months ended March 31, 2025, an increase of $3,605 from $50,128 for the same period of 2024. The increase in interest and dividend income is attributable to a $3,162 increase in interest and fees on loans and a $621 increase in interest income on taxable securities. The $3,605 increase in interest and fees on loans is attributable to increases in both average balances and loan yield. The average balance of loans increased by $219,409, or 7.6%, to $3,099,440 for the three months ended March 31, 2025, as compared to $2,880,031 for the same period of 2024. The loan yield increased to 6.23% for the three months ended March 31, 2025, from 6.20% for the same period of 2024.
Current wording
Total interest and dividend income was $56,271 for the three months ended June 30, 2025, an increase of $5,678 from $50,593 for the same period of 2024. The increase in interest and dividend income is attributable to a $5,026 increase in interest and fees on loans and a $681 increase in interest income on taxable securities. The $5,026 increase in interest and fees on loans is attributable to increases in both average balances and loan yield. The average balance of loans increased by $171,714, or 5.8%, to $3,136,091 for the three months ended June 30, 2025, as compared to $2,964,377 for the same period of 2024. The loan yield increased to 6.39% for the three months ended June 30, 2025, from 6.10% for the same period of 2024.
Previous wording
Interest on taxable securities increased $621 to $3,555 for the three months ended March 31, 2025, compared to $2,934 for the same period of 2024. The average balance of taxable securities increased $46,078 to $396,893 for the three months ended March 31, 2025, as compared to $350,815 for the same period of 2024. The yield on taxable securities increased 31 basis points to 3.31% for the three months ended March 31, 2025, compared to 3.00% for the same period of 2024 resulting from the purchase of similar securities with higher rates due to the yield curve change from the first quarter of 2025 compared to the same period of 2024. Interest on tax-exempt securities decreased $35 to $2,340 for the three months ended March 31, 2025, compared to $2,375 for the same period of 2024. The average balance of tax-exempt securities decreased $8,907 to $286,481 for the three months ended March 31, 2025, as compared to $295,388 for the same period of 2024. The yield on tax-exempt securities increased 6 basis points to 3.91% for the three months ended March 31, 2025, compared to 3.85% for the same period of 2024.
Current wording
Interest on taxable securities increased $681 to $3,751 for the three months ended June 30, 2025, compared to $3,070 for the same period of 2024. The average balance of taxable securities increased $52,607 to $404,104 for the three months ended June 30, 2025, as compared to $351,497 for the same period of 2024. The yield on taxable securities increased 31 basis points to 3.42% for the three months ended June 30, 2025, compared to 3.11% for the same period of 2024, resulting from the purchase of similar securities with higher rates due to the current rate environment in the second quarter of 2025 compared to the same period of 2024. Interest on tax-exempt securities decreased $34 to $2,338 for the three months ended June 30, 2025, compared to $2,372 for the same period of 2024. The average balance of tax-exempt securities decreased $10,197 to $277,931 for the three months ended June 30, 2025, as compared to $288,128 for the same period of 2024. The yield on tax-exempt securities increased 1 basis points to 3.88% for the three months ended June 30, 2025, compared to 3.87% for the same period of 2024.
Previous wording
Total interest expense decreased $796, or 3.7%, to $20,960 for the three months ended March 31, 2025, compared with $21,756 for the same period of 2024. For the three months ended March 31, 2025, the average balance of interest-bearing liabilities increased $285,504 to $3,006,090, as compared to $2,720,586 for the same period of 2024. Interest incurred on deposits decreased by $271 to $15,716 for the three months ended March 31, 2025, compared to $15,987 for the same period of 2024. The average balance of interest-bearing deposits increased by $252,893 to $2,538,560 for the three months ended March 31, 2025, as compared to the same period in 2024, slightly offset by a decrease in the rate paid on time deposits from 5.33% in 2024 to 4.22% in 2025. The decrease in rates on time deposits is primarily related to paying lower rates on retail and brokered CDs due to the lower rate environment in the first quarter of 2025 compared to the same period of 2024. Interest expense incurred on short-term FHLB advances decreased because of the yield curve shifting downwards during the first three months of 2025 compared to the same period of 2024.
Current wording
Total interest expense decreased $1,385, or 6.1%, to $21,457 for the three months ended June 30, 2025, compared to $22,842 for the same period of 2024. For the three months ended June 30, 2025, the average balance of interest-bearing liabilities increased $249,290 to $3,062,324, as compared to $2,813,034 for the same period of 2024. Interest incurred on deposits increased by $53 to $15,558 for the three months ended June 30, 2025, compared to $15,505 for the same period of 2024. The average balance of interest-bearing deposits increased by $272,166 to $2,538,500 for the three months ended June 30, 2025, as compared to the same period in 2024, slightly offset by a decrease in the rate paid on time deposits from 5.40% in 2024 to 4.04% in 2025. The decrease in rates on time deposits was primarily related to paying lower rates on retail and brokered CDs due to the lower rate environment in the second quarter of 2025 compared to the same period of 2024. Interest expense incurred on short-term FHLB advances decreased because of the yield curve shifting downwards during the second quarter of 2025 compared to the same period of 2024.
Previous wording
Average yields are presented on a tax equivalent basis. The tax equivalent effect associated with loans and investments, included in the yields above, was $622 and $632 for the periods ended March 31, 2025 and 2024, respectively.
Current wording
*Average yields are presented on a tax equivalent basis. The tax equivalent effect associated with loans and investments, included in the yields above, was $622 and $631 for the periods ended June 30, 2025 and 2024, respectively.
Previous wording
The Company provides for loan losses through regular provisions to the allowance for credit losses. During the three months ended March 31, 2025, the Company recorded a provision for credit losses of $1,567, a decrease of $425, from $1,992 during the three months ended March 31, 2024.
Current wording
The Company provides for credit losses through regular provisions to the allowance for credit losses. During the three months ended June 30, 2025, the Company recorded a provision for credit losses of $1,025, a decrease of $630, from $1,655 during the three months ended June 30, 2024.
Previous wording
Total noninterest income for the three months ended March 31, 2025 was $7,860, a decrease of $396, or 4.8%, from $8,256 for the same period of 2024. Other income decreased $614 for the three months ended March 31, 2025, compared to the same period of 2025, mostly related to lower fee revenue from CLF. Net gain on sale of loans and leases decreased $259 for the three months ended March 31, 2025, compared to the same period of 2024, primarily due to lower originations. Net gain (loss) on equity securities increased $112 as a result of the decrease in market value being less in the first quarter of 2025 compared to the same period in 2024 coupled with an increase of $222 in lease revenue and residual income from stronger lease originations.
Current wording
Total noninterest income for the three months ended June 30, 2025 was $6,589, a decrease of $3,788, or 36.5%, from $10,377 for the same period of 2024. Lease revenue and residual income decreased $3,004 for the three months ended June 30, 2025, compared to the same period of 2024, mainly due to stronger lease originations in 2024 coupled with a one-time non-recurring adjustment in 2025 that decreased leasing revenue by $1,044 associated with CLF's core system conversion. Other income decreased $639 for the three months ended June 30, 2025, compared to the same period of 2024, mostly related to lower fee revenue from CLF.
Previous wording
Income tax expense for the three months ended March 31, 2025 totaled $1,772, up $937 compared to the same period of 2024. The effective tax rates for the three-month periods ended March 31, 2025 and 2024 were 14.8% and 11.6%, respectively. The difference between the statutory federal income tax rate and the Company’s effective tax rate is the permanent tax differences, primarily consisting of tax-exempt interest income from municipal investments and loans, low-income housing tax credits, tax-deductible captive insurance premiums and bank owned life insurance income.
Current wording
Income tax expense for the three months ended June 30, 2025 totaled $1,881, up $861 compared to the same period of 2024. The effective tax rates for the three month periods ended June 30, 2025 and 2024 were 14.8% and 12.6%, respectively. The difference between the statutory federal income tax rate and the Company’s effective tax rate is the permanent tax differences, primarily consisting of tax-exempt interest income from municipal investments and loans, low-income housing tax credits, tax-deductible captive insurance premiums and bank owned life insurance income.
Previous wording
The following table presents the condensed average balance sheets for the three months ended March 31, 2025 and 2024. The daily average loan amounts outstanding are net of unearned income and include loans held for sale and nonaccrual loans. The average balance of securities is computed using the carrying value of securities. Rates are annualized and taxable equivalent yields are computed using a 21% tax rate for tax-exempt interest income. The average yield has been computed using the historical amortized cost average balance for available-for-sale securities.
Current wording
The following table presents the condensed average balance sheets for the six months ended June 30, 2025 and 2024. The daily average loan amounts outstanding are net of unearned income and include loans held for sale and nonaccrual loans. The average balance of securities is computed using the carrying value of securities. Rates are annualized and taxable equivalent yields are computed using a 21% tax rate for tax-exempt interest income. The average yield has been computed using the historical amortized cost average balance for available-for-sale securities.
Previous wording
Total noninterest expense for the three months ended March 31, 2025 was $27,126, a decrease of $315, or 1.1%, from $27,441 reported for the same period of 2024. The decrease in total noninterest expense was primarily due to decreases in compensation expense and equipment expense, mostly offset by increases in professional services and FDIC assessment. The decrease in compensation expense was primarily due to lower employee benefit costs, lower full time equivalent employees ("FTE"), coupled with an increase in the deferral of salaries and wages related to the loan growth in the first three months of 2025. The decrease in equipment expense was mainly due to normal depreciation as well as decreases in expenses related to operating lease contracts. The increase in professional fees was attributable to utilizing consultants to assist in the transitioning of the new core operating system at CLF. The increase in FDIC assessment was due to an increase in the total assessment base resulting from the Company's overall balance sheet growth year-over-year. The average FTEs were 520 at March 31, 2025, a decrease of 19 FTEs over the same period of 2024.
Current wording
Total noninterest expense for the six months ended June 30, 2025 was $54,608, a decrease of $1,223, or 2.2%, from $55,831 reported for the same period of 2024. The decrease in total noninterest expense was primarily due to decreases in compensation expense and equipment expense, mostly offset by increases in professional services. The decrease in compensation expense was primarily due to an increase in the deferral of salaries and wages related to the loan growth in the first six months of 2025 coupled with a decrease in the average number of full-time equivalent employees to 523 at June 30, 2025, compared to 538 for the same period of 2024, resulting in lower compensation and benefits costs. The decrease in equipment expense was mainly due to normal depreciation as well as decreases in expenses related to operating lease contracts. The increase in professional fees was attributable to utilizing consultants to assist in the transitioning of the new core operating system at CLF.
Previous wording
Shareholders’ equity totaled $397,434 at March 31, 2025, compared to $388,502 at December 31, 2024. Shareholders’ equity increased during the first three months of 2025 as a result of net income of $10,168 and an increase in the fair value of securities available-for-sale, net of tax, of $1,408, partially offset by dividends on common shares of $2,632.
Current wording
Shareholders’ equity totaled $404,137 at June 30, 2025, compared to $388,502 at December 31, 2024. Shareholders’ equity increased during the first six months of 2025 as a result of net income of $21,183, partially offset by dividends on common shares of $5,270.
Previous wording
The Company maintains a conservative liquidity position. All securities, with the exception of equity securities, are classified as available-for-sale. Securities, with maturities of one year or less, totaled $8,840, or 1.25% of the total security portfolio, at March 31, 2025. The available-for-sale securities portfolio helps to provide the Company with the ability to meet its funding needs. The Condensed Consolidated Statements of Cash Flows (Unaudited) contained in the Consolidated Financial Statements detail the Company’s cash flows from operating activities resulting from net earnings.
Current wording
The Company maintains a conservative liquidity position. All securities, with the exception of equity securities, are classified as available-for-sale. Securities, with maturities of one year or less, totaled $8,840, or 1.25% of the total securities portfolio, at June 30, 2025. The available-for-sale securities portfolio helps to provide the Company with the ability to meet its funding needs. The Condensed
Previous wording
As reported in the Condensed Consolidated Statements of Cash Flows (Unaudited), our cash flows are classified for financial reporting purposes as operating, investing or financing cash flows. Net cash provided by operating activities was $3,612 and $752 for the three months ended March 31, 2025 and 2024, respectively. The primary additions to cash from operating activities are from proceeds from the sale of loans. The primary use of cash from operating activities is from loans originated for sale. Net cash used for investing activities was $21,231 and $34,172 for the three months ended March 31, 2025 and 2024, respectively, principally reflecting our loan and investment security activities. Cash provided by financing activities was $44,920 and $23,324 for the three months ended March 31, 2025 and 2024, respectively. The primary additions in financing activities is the increase in deposits and short-term FHLB advances, partially offset by the payment of common dividends.
Current wording
As reported in the Condensed Consolidated Statements of Cash Flows (Unaudited), our cash flows are classified for financial reporting purposes as operating, investing or financing cash flows. Net cash provided by operating activities was $14,693 and $12,945 for the six months ended June 30, 2025 and 2024, respectively. The primary additions to cash from operating activities are from proceeds from the sale of loans. The primary use of cash from operating activities is from loans originated for sale. Net cash used for investing activities was $76,078 and $164,247 for the six months ended June 30, 2025 and 2024, respectively, principally reflecting our loan and investment security activities. Cash provided by financing activities was $72,088 and $146,656 for the six months ended June 30, 2025 and 2024, respectively. The primary additions in financing activities is the increase in short-term FHLB advances, partially offset by the payment of common dividends.
Previous wording
Future loan demand of Civista may be funded by increases in deposit accounts, proceeds from payments on existing loans, the maturity of securities, and the sale of securities classified as available-for-sale. Additional sources of funds may also come from borrowing in the Federal Funds market and/or borrowing from the FHLB. Through its correspondent banks, Civista maintains federal funds borrowing lines totaling $50,000. As of March 31, 2025, Civista had total credit availability with the FHLB of $870,985 with standby letters of credit totaling $125,400 and a remaining borrowing capacity of approximately $384,230. In addition, CBI maintains a credit line with a third party lender totaling $10,000. No borrowings were outstanding by CBI under this credit line as of March 31, 2025.
Current wording
Future loan demand of Civista may be funded by increases in deposit accounts, proceeds from payments on existing loans, the maturity of securities, and the sale of securities classified as available-for-sale. Additional sources of funds may also come from borrowing in the Federal Funds market and/or borrowing from the FHLB. Through its correspondent banks, Civista maintains federal funds borrowing lines totaling $50,000. As of June 30, 2025, Civista had total credit availability with the FHLB of $889,402 with standby letters of credit totaling $123,000 and a remaining borrowing capacity of approximately $331,799. In addition, CBI maintains a credit line with a third party lender totaling $10,000. No borrowings were outstanding by CBI under this credit line as of June 30, 2025.
Rearranged current paragraphs (9)
Current report — wording carried from elsewhere
The following table presents the condensed average balance sheets for the three months ended June 30, 2025 and 2024. The daily average loan amounts outstanding are net of unearned income and include loans held for sale and nonaccrual loans. The average balance of securities is computed using the carrying value of securities. Rates are annualized and taxable equivalent yields are computed using a
Current report — wording carried from elsewhere
21% tax rate for tax-exempt interest income. The average yield has been computed using the historical amortized cost average balance for available-for-sale securities.
Current report — wording carried from elsewhere
Total noninterest expense for the three months ended June 30, 2025 was $27,482, a decrease of $907, or 3.2%, from $28,389 reported for the same period of 2024. The decrease in total noninterest expense was primarily due to decreases in compensation expense and equipment expense, mostly offset by increases in professional services. The decrease in compensation expense was primarily due to an increase in the deferral of salaries and wages related to the loan growth in the second quarter of 2025 coupled with a decrease in the average number of full-time equivalent employees to 526 at June 30, 2025, compared to 537 for the same period of 2024, resulting in lower compensation and benefits costs. The decrease in equipment expense was mainly due to normal depreciation as well as decreases in expenses related to operating lease contracts. The increase in professional fees was attributable to utilizing consultants to assist in the transitioning of the new core operating system at CLF.
Current report — wording carried from elsewhere
*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 $1.3 million for the periods ended June 30, 2025 and 2024, respectively.
Current report — wording carried from elsewhere
Net interest income may also be analyzed by comparing the volume and rate components of interest income and interest expense. The following table provides an analysis of the changes in interest income and expense between the six months ended June 30, 2025 and 2024. The table is presented on a fully tax-equivalent basis.
Current report — wording carried from elsewhere
The change in interest income and interest expense due to changes in both volume and rate, which cannot be segregated, has been allocated proportionately to the change due to volume and the change due to rate.
Current report — wording carried from elsewhere
The Company provides for credit losses through regular provisions to the allowance for credit losses. During the six months ended June 30, 2025, the Company recorded a provision for credit losses of $2,592, a decrease of $1,055, from $3,647 during the six months ended June 30, 2024.
Current report — wording carried from elsewhere
Income tax expense for the six months ended June 30, 2025 totaled $3,653, up $1,798 compared to the same period of 2024. The effective tax rates for the six months ended June 30, 2025 and 2024 were 14.7% and 12.1%, respectively. The difference between the statutory federal income tax rate and the Company’s effective tax rate is the permanent tax differences, primarily consisting of tax-exempt interest income from municipal investments and loans, low-income housing tax credits, tax-deductible captive insurance premiums and bank owned life insurance income.
Current report — wording carried from elsewhere
Consolidated Statements of Cash Flows (Unaudited) contained in the Consolidated Financial Statements detail the Company’s cash flows from operating activities resulting from net earnings.