Civista Bancshares, Inc. Announces First-Quarter 2026 Financial Results of $0.72 per Common Share, up $0.06 per Common Share from First-Quarter 2025

Civista Bancshares, Inc. Announces First-Quarter 2026 Financial Results of $0.72 per Common Share, up $0.06 per Common Share from First-Quarter 2025 SANDUSKY, Ohio, April 22, 2026 /PRNewswire/ -- Civista Bancshares, Inc. (NASDAQ: CIVB) ("Civista") today reported net income of $15.0 million, or $0.72 per common share, for the quarter ended March 31, 2026. The results of the periods reflect the inclusion of The Farmers Savings Bank ("FSB") merger since November 7, 2025.

CEO Commentary:

"Civista reported a solid start to 2026, with first‑quarter net income of $15.0 million, or $0.72 per diluted share," said Dennis Shaffer, President and Chief Executive Officer of Civista Bancshares, Inc. "Results for the quarter reflected continued expansion in net interest margin, disciplined expense management, and stable credit performance, while we proactively managed the balance sheet in a changing operating environment."

"During the first quarter, we continued to optimize our funding mix by reducing higher‑cost sources, including brokered deposits and short‑term FHLB advances, while growing core deposits," Shaffer said. "These actions contributed to lower funding costs and further strengthened our liquidity profile."

"We also successfully completed the integration and system conversion of The Farmers Savings Bank during the quarter," Shaffer added. "The conversion was executed smoothly and on schedule, reflecting our disciplined approach to integration and our commitment to minimizing disruption for customers and employees."

"As we move forward, we remain focused on disciplined growth, prudent risk management, and delivering consistent value for shareholders," Shaffer concluded. "Our community‑banking model and diversified earnings profile position Civista well as we navigate the current economic environment and continue to support the communities we serve."

Results of Operations:

For the three-month periods ended March 31, 2026, March 31, 2025 and December 31, 2025.

The results of the periods reflect the inclusion of FSB merger since November 7, 2025.

First-Quarter 2026 Highlights

Assets

Total assets at March 31, 2026, were $4.3 billion, a decrease of $38.1 million, or 0.9% from December 31, 2025.

Deposits & Borrowings

Total deposits at March 31, 2026, were $3.5 billion, an increase of $35.4 million, or 1.0% from December 31, 2025.

Net Interest Income and Net Interest Margin

Net interest income increased $5.1 million, or 15.4%, for the first quarter of 2026, compared to the same period last year.

Credit

Provision for credit losses (including provision for unfunded commitments) decreased $2.2 million benefiting from a credit to the provision for credit losses of $0.6 million for the first quarter of 2026 compared to an expense of $1.6 million for the same period last year.

Non-interest Income

Non-interest income for the first quarter of 2026 totaled $9.4 million, an increase of $1.6 million or 20.0%, when compared to the same period last year.

Non-interest Expense

Non-interest expense for the first quarter of 2026 totaled $29.9 million, an increase of $2.7 million or 10.1%, when compared to the same period last year. In the first quarter of 2026, noninterest expense was increased by $0.4 million of non-recurring adjustments related to acquisition expenses resulting from the merger with FSB that closed in November 2025. These expenses are recorded in other noninterest expenses.

Taxes

Civista's effective income tax rate for the first quarter of 2026 was 16.8% compared to 14.8% for the same period last year.

Capital

Total shareholders' equity at March 31, 2026, totaled $552.2 million, an increase of $8.8 million from December 31, 2025. This resulted from an increase of $11.3 million in retained earnings, partially offset by an increase in accumulated other comprehensive loss of $2.9 million resulting from the change in the unrealized loss on available-for-sale securities portfolio.

Civista did not repurchase any shares in the first quarter of 2026 as the current repurchase plan is set to expire in April 2027. For the three months ended March 31, 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 Webcast

Civista Bancshares, Inc. will also host a conference call to discuss the Company's financial results for the first quarter of 2026 at 1:00 p.m. ET on Wednesday, April 22, 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. first 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 Bancshares

Civista Bancshares, Inc., is a $4.4 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 Statements

This 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 Measures

This 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 March 31,

2026

2025

Average

Yield/

Average

Yield/

Assets:

balance

Interest

rate *

balance

Interest

rate *

Interest-earning assets:

Loans **

3,252,342

49,230

6.14

3,099,440

47,646

6.23

Taxable securities ***

432,760

3,954

3.49

396,893

3,555

3.31

Non-taxable securities ***

285,277

2,303

3.94

286,481

2,340

3.91

Interest-bearing deposits in other banks

32,765

322

3.91

18,895

192

4.13

Total interest-earning assets ***

4,003,144

55,809

5.66

3,801,709

53,733

5.71

Noninterest-earning assets:

Cash and due from financial institutions

39,130

43,203

Premises and equipment, net

39,989

46,404

Accrued interest receivable

14,196

13,567

Intangible assets

143,272

133,268

Bank owned life insurance

63,287

62,916

Other assets

51,682

58,588

Less allowance for loan losses

(41,663)

(39,956)

Total Assets

4,313,037

4,119,699

Liabilities and Shareholders' Equity:

Interest-bearing liabilities:

Demand and savings

1,655,416

5,431

1.33

1,578,949

5,729

1.47

Time

1,110,357

10,022

3.66

959,611

9,987

4.22

Short-term FHLB borrowings

148,656

1,348

3.68

355,589

3,929

4.48

Long-term FHLB borrowings

781

2.73

1,408

2.56

Other borrowings

3,913

7.50

6,430

145

9.14

Subordinated debentures

104,249

1,108

4.31

104,103

1,161

4.52

Total interest-bearing liabilities

3,023,372

17,986

2.41

3,006,090

20,960

2.83

Non-interest-bearing deposits

695,429

670,774

Other liabilities

40,296

45,814

Shareholders' equity

553,940

397,021

Total Liabilities and Shareholders' Equity

4,313,037

4,119,699

Net interest income and interest rate spread

37,823

3.25

32,773

2.88

Net interest margin ***

3.85

3.51

* - Average yields are presented on a tax equivalent basis. The tax equivalent effect associated with loans and investments, included in the yields above, was $612 thousand and $622 thousand for the periods ended March 31, 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 $41.3 million and $59.2 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 March 31,

2026

2025

$ Change

% Change

Service charges

1,714

1,524

190

12.5

Net gain (loss) on equity securities

(29)

213.8

Net gain on sale of loans and leases

1,605

604

1,001

165.7

ATM/Interchange fees

1,386

1,326

4.5

Wealth management fees

1,433

1,340

6.9

Lease revenue and residual income

1,630

1,896

(266)

-14.0

Bank owned life insurance

390

387

0.8

Swap fees

(16)

-22.2

Other

1,184

740

444

60.0

Total non-interest income

9,431

7,860

1,571

20.0

Non-interest expense

(unaudited - dollars in thousands)

Three months ended March 31,

2026

2025

$ Change

% Change

Compensation expense

16,229

14,043

2,186

15.6

Net occupancy expense

1,623

1,634

(11)

-0.7

Contracted data processing

730

567

163

28.7

FDIC assessment

423

873

(450)

-51.5

State franchise tax

554

526

5.3

Professional services

1,585

2,090

(505)

-24.2

Equipment expense

2,089

2,103

(14)

-0.7

ATM/Interchange expense

732

580

152

26.2

Marketing

478

296

182

61.5

Amortization of core deposit intangible

696

332

364

109.6

Software maintenance expense

1,475

1,277

198

15.5

Other

3,259

2,805

454

16.2

Total non-interest expense

29,873

27,126

2,747

10.1

End of period loan and lease balances

(unaudited - dollars in thousands)

March 31,

December 31,

2026

2025

$ Change

% Change

Commercial and Agriculture

310,400

308,692

1,708

0.6

Commercial Real Estate:

Owner Occupied

390,786

385,547

5,239

1.4

Non-owner Occupied

1,232,781

1,239,017

(6,236)

-0.5

Residential Real Estate

943,425

944,328

(903)

-0.1

Real Estate Construction

254,254

285,137

(30,883)

-10.8

Farm Real Estate

32,700

37,775

(5,075)

-13.4

Lease financing receivable

32,693

35,103

(2,410)

-6.9

Consumer and Other

32,628

34,447

(1,819)

-5.3

Total Loans

3,229,667

3,270,046

(40,379)

-1.2

End of period deposit balances

(unaudited - dollars in thousands)

March 31,

December 31,

2026

2025

$ Change

% Change

Noninterest-bearing demand

703,778

702,032

1,746

0.2

Interest-bearing demand

419,295

400,403

18,892

4.7

Savings and money market

1,291,253

1,234,593

56,660

4.6

Time deposits

710,423

727,294

(16,871)

-2.3

Brokered deposits

377,141

402,142

(25,001)

-6.2

Total Deposits

3,501,890

3,466,464

35,426

1.0

Allowance for Credit Losses

(dollars in thousands)

Three months ended March 31,

2026

2025

Beginning of period

42,020

39,669

Charge-offs

(806)

(976)

Recoveries

343

Provision

(768)

1,248

End of period

40,536

40,284

Allowance for Unfunded Commitments

(dollars in thousands)

Three months ended March 31,

2026

2025

Beginning of period

3,236

3,380

Provision

139

319

End of period

3,375

3,699

(dollars in thousands)

March 31,

December 31,

2026

2025

Non-accrual loans

29,400

30,834

Restructured loans, accruing

538

90+ Days Past Due, Still Accruing

229

462

Total non-performing loans

30,167

31,310

Other Real Estate Owned

Total non-performing assets

30,167

31,310

Civista Bancshares, Inc.

Financial Highlights

(Unaudited, dollars in thousands, except share and per share amounts)

Consolidated Condensed Statement of Operations

Three Months Ended

March 31,

2026

2025

Interest income

55,809

53,733

Interest expense

17,986

20,960

Net interest income

37,823

32,773

Provision for credit losses

(768)

1,248

Provision for unfunded commitments

139

319

Net interest income after provision

38,452

31,206

Non-interest income

9,431

7,860

Non-interest expense

29,873

27,126

Income before taxes

18,010

11,940

Income tax expense

3,021

1,772

Net income

14,989

10,168

Net income available

to common shareholders

14,989

10,168

Dividends paid per common share

0.18

0.17

Earnings per common share

Basic

Net income

14,989

10,168

Less allocation of earnings and

dividends to participating securities

Net income available to common

shareholders - basic

14,961

10,124

Weighted average common shares outstanding

20,745,499

15,488,813

Less average participating securities

39,169

66,711

Weighted average number of shares outstanding

used to calculate basic earnings per share

20,706,330

15,422,102

Earnings per common share

Basic

0.72

0.66

Diluted

0.72

0.66

Selected financial ratios:

Return on average assets

1.41

1.00

Return on average equity

10.97

10.39

Dividend payout ratio

24.91

25.90

Net interest margin (tax equivalent)

3.85

3.51

Effective tax rate

16.77

14.84

Selected Balance Sheet Items

(Dollars in thousands, except share and per share amounts)

March 31,

December 31,

2026

2025

(unaudited)

Cash and due from financial institutions

83,525

77,320

Investment in time deposits

2,880

1,165

Investment securities

682,462

684,600

Loans held for sale

6,940

7,180

Loans

3,229,667

3,270,046

Less: allowance for credit losses

(40,536)

(42,020)

Net loans

3,189,131

3,228,026

Other securities

25,144

25,942

Premises and equipment, net

39,055

40,611

Goodwill and other intangibles

142,774

143,538

Bank owned life insurance

63,543

63,153

Other assets

62,868

64,918

Total assets

4,298,322

4,336,453

Total deposits

3,501,890

3,466,464

Short-term Federal Home Loan Bank advances

100,000

175,000

Long-term Federal Home Loan Bank advances

739

855

Subordinated debentures

104,276

104,234

Other borrowings

3,594

4,090

Accrued expenses and other liabilities

35,580

42,336

Total liabilities

3,746,079

3,792,979

Common shares

420,488

419,769

Retained earnings

251,041

239,784

Treasury shares

(76,082)

(75,764)

Accumulated other comprehensive loss

(43,204)

(40,315)

Total shareholders' equity

552,243

543,474

Total liabilities and shareholders' equity

4,298,322

4,336,453

March 31,

December 31,

2026

2025

(unaudited)

Shares outstanding at period end

20,783,348

20,746,474

Book value per share

26.57

26.20

Equity to asset ratio

12.85

12.53

Selected asset quality ratios:

Allowance for credit losses to total loans

1.26

1.28

Non-performing assets to total assets

0.70

0.72

Allowance for credit losses to non-performing loans

134.37

134.21

Non-performing asset analysis

Nonaccrual loans

29,400

30,834

Restructured loans

538

Other real estate owned

90+ Days Past Due, Still Accruing

229

462

Total

30,167

31,310

Supplemental Financial Information

(Unaudited - dollars in thousands except share data)

March 31,

December 31,

September 30,

June 30,

March 31,

End of Period Balances

2026

2025

Assets

Cash and due from banks

83,525

77,320

62,766

73,858

90,456

Investment in time deposits

2,880

1,165

735

715

960

Investment securities

682,462

684,600

657,189

645,228

648,537

Loans held for sale

6,940

7,180

8,012

10,733

4,324

Loans and leases

3,229,667

3,270,046

3,095,994

3,151,124

3,104,036

Allowance for credit losses

(40,536)

(42,020)

(40,254)

(40,455)

(40,284)

Net Loans

3,189,131

3,228,026

3,055,740

3,110,669

3,063,752

Other securities

25,144

25,942

27,901

36,195

32,592

Premises and equipment, net

39,055

40,611

40,910

42,922

45,107

Goodwill and other intangibles

142,774

143,538

132,276

132,631

133,026

Bank owned life insurance

63,543

63,153

62,756

63,555

63,170

Other assets

62,868

64,918

65,049

69,363

64,793

Total Assets

4,298,322

4,336,453

4,113,334

4,185,869

4,146,717

Liabilities

Total deposits

3,501,890

3,466,464

3,230,463

3,196,207

3,238,888

Federal Home Loan Bank advances - short term

100,000

175,000

232,000

433,500

360,000

Federal Home Loan Bank advances - long term

739

855

970

1,103

1,355

Subordinated debentures

104,276

104,234

104,213

104,172

104,130

Other borrowings

3,594

4,090

4,699

5,379

6,140

Accrued expenses and other liabilities

35,580

42,336

41,961

41,371

38,770

Total liabilities

3,746,079

3,792,979

3,614,306

3,781,732

3,749,283

Shareholders' Equity

Common shares

420,488

419,769

388,458

312,589

312,192

Retained earnings

251,041

239,784

230,798

221,321

212,944

Treasury shares

(76,082)

(75,764)

(75,760)

(75,753)

Accumulated other comprehensive loss

(43,204)

(40,315)

(44,468)

(54,020)

(51,949)

Total shareholders' equity

552,243

543,474

499,028

404,137

397,434

Total Liabilities and Shareholders' Equity

4,298,322

4,336,453

4,113,334

4,185,869

4,146,717

Shares outstanding at period end

20,783,348

20,746,474

19,312,726

15,529,342

15,519,072

Book value per share

26.57

26.20

25.84

26.02

25.61

Equity to asset ratio

12.85

12.53

12.13

9.65

9.58

March 31,

December 31,

September 30,

June 30,

March 31,

2026

2025

Selected asset quality ratios:

Allowance for credit losses to total loans

1.26

1.28

1.30

1.28

1.30

Non-performing assets to total assets

0.70

0.72

0.55

0.75

Allowance for credit losses to non-performing loans

134.37

134.21

176.52

176.11

129.99

Non-performing asset analysis

Non-accrual loans

29,400

30,834

22,615

22,742

30,989

Restructured loans

538

90+ Days Past Due, Still Accruing

229

462

177

223

146

Other real estate owned

209

Total

30,167

31,310

22,804

23,181

31,344

Supplemental Financial Information

(Unaudited - dollars in thousands except share data)

March 31,

December 31,

September 30,

June 30,

March 31,

Quarterly Average Balances

2026

2025

Assets:

Earning assets

4,003,144

3,939,580

3,829,484

3,841,369

3,801,709

Securities

718,037

694,263

676,938

682,035

683,374

Loans

3,252,342

3,197,327

3,128,033

3,136,091

3,099,440

Liabilities and Shareholders' Equity

Total deposits

3,461,202

3,424,018

3,237,025

3,190,592

3,209,277

Interest-bearing deposits

2,765,773

2,717,751

2,574,153

2,538,500

2,538,561

Other interest-bearing liabilities

257,599

256,899

383,305

523,824

461,100

Total shareholders' equity

553,940

525,673

472,993

400,915

397,021

Supplemental Financial Information

(Unaudited - dollars in thousands)

March 31,

December 31,

September 30,

June 30,

March 31,

End of period loan and lease balances

2026

2025

Commercial and Agriculture

310,400

308,692

302,407

338,598

330,627

Commercial Real Estate:

Owner Occupied

390,786

385,547

384,176

378,248

378,095

Non-owner Occupied

1,232,781

1,239,017

1,216,031

1,263,612

1,246,025

Residential Real Estate

943,425

944,328

842,362

815,408

773,349

Real Estate Construction

254,254

285,137

278,163

277,643

297,589

Farm Real Estate

32,700

37,775

23,713

23,866

22,399

Lease financing receivable

32,693

35,103

38,960

42,758

44,570

Consumer and Other

32,628

34,447

10,182

10,991

11,382

Total Loans

3,229,667

3,270,046

3,095,994

3,151,124

3,104,036

Supplemental Financial Information

(Unaudited - dollars in thousands)

March 31,

December 31,

September 30,

June 30,

March 31,

End of period deposit balances

2026

2025

Noninterest-bearing demand

703,778

702,032

651,934

647,609

648,683

Interest-bearing demand

419,295

400,403

415,620

433,089

467,601

Savings and money market

1,291,253

1,234,593

1,129,985

1,100,660

1,146,480

Time deposits

710,423

727,294

601,757

560,702

515,910

Brokered deposits

377,141

402,142

431,167

454,147

460,214

Total Deposits

3,501,890

3,466,464

3,230,463

3,196,207

3,238,888

Supplemental Financial Information

(Unaudited - dollars in thousands except share data)

Three Months Ended

March 31,

December 31,

September 30,

June 30,

March 31,

Income statement

2026

2025

Total interest and dividend income

55,809

55,741

55,240

56,271

53,733

Total interest expense

17,986

19,290

20,695

21,457

20,960

Net interest income

37,823

36,451

34,545

34,814

32,773

Provision for credit losses

(768)

724

378

1,171

1,248

Provision for unfunded commitments

139

(139)

(178)

(146)

319

Non-interest income

9,431

9,884

9,633

6,589

7,860

Non-interest expense

29,873

31,003

28,327

27,482

27,126

Income before taxes

18,010

14,747

15,651

12,896

11,940

Income tax expense

3,021

2,480

2,891

1,881

1,772

Net income

14,989

12,267

12,760

11,015

10,168

Net income available to common shareholders

14,989

12,267

12,760

11,015

10,168

Per share data

Earnings per common share

Basic

Net income

14,989

12,267

12,760

11,015

10,168

Less allocation of earnings and

dividends to participating securities

Net income available to common shareholders - basic

14,961

12,219

12,699

10,970

10,124

Weighted average common shares outstanding

20,745,499

20,185,285

18,767,307

15,524,490

15,488,813

Less average participating securities

39,169

90,281

91,743

96,692

66,711

Weighted average number of shares outstanding used to

calculate basic earnings per share

20,706,330

20,095,004

18,675,564

15,427,798

15,422,102

Earnings per common share

Basic

0.72

0.61

0.68

0.71

0.66

Diluted

0.72

0.61

0.68

0.71

0.66

Common shares dividend paid

3,732

3,283

2,638

2,636

Dividends paid per common share

0.18

0.17

Three Months Ended

March 31,

December 31,

September 30,

June 30,

March 31,

Selected financial ratios

2026

2025

Return on average assets

1.41

1.14

1.22

1.06

1.00

Return on average equity

10.97

9.26

10.70

11.02

10.39

Dividend payout ratio

24.91

27.97

25.00

23.96

25.90

Net interest margin (tax equivalent)

3.85

3.69

3.58

3.64

3.51

Effective tax rate

16.77

16.82

18.47

14.59

14.84

Supplemental Financial Information

(Unaudited - dollars in thousands)

Three Months Ended

March 31,

December 31,

September 30,

June 30,

March 31,

Non-interest income

2026

2025

Service charges

1,714

1,706

1,667

1,564

1,524

Net gain (loss) on equity securities

120

255

(74)

(29)

Net gain on sale of loans and leases

1,605

1,594

1,450

841

604

ATM/Interchange fees

1,386

1,722

1,435

1,418

1,326

Wealth management fees

1,433

1,473

1,402

1,325

1,340

Lease revenue and residual income

1,630

1,518

1,934

525

1,896

Bank owned life insurance

390

397

666

386

387

Swap fees

150

Other

1,184

1,204

824

551

740

Total non-interest income

9,431

9,884

9,633

6,589

7,860

Supplemental Financial Information

(Unaudited - dollars in thousands)

Three Months Ended

March 31,

December 31,

September 30,

June 30,

March 31,

Non-interest expense

2026

2025

Compensation expense

16,229

14,526

15,161

15,011

14,043

Net occupancy expense

1,623

1,410

1,466

1,419

1,634

Contracted data processing

730

672

559

536

567

FDIC assessment

423

493

627

689

873

State franchise tax

554

343

536

634

526

Professional services

1,585

1,467

1,225

1,798

2,090

Equipment expense

2,089

2,032

2,205

1,764

2,103

ATM/Interchange expense

732

710

755

683

580

Marketing

478

410

391

289

296

Amortization of core deposit intangible

696

576

318

338

332

Software maintenance expense

1,475

1,411

1,480

1,294

1,277

Other

3,259

6,953

3,604

3,027

2,805

Total non-interest expense

29,873

31,003

28,327

27,482

27,126

Supplemental Financial Information

(Unaudited - dollars in thousands except share data)

Three Months Ended

March 31,

December 31,

September 30,

June 30,

March 31,

Asset quality

2026

2025

Allowance for credit losses:

Beginning of period

42,020

40,254

40,455

40,284

39,669

CECL Day 1 Adjustment FSB

1,960

Charge-offs

(806)

(1,064)

(662)

(1,092)

(976)

Recoveries

146

343

Provision

(768)

724

378

1,171

1,248

End of period

40,536

42,020

40,254

40,455

40,284

Allowance for unfunded commitments:

Beginning of period

3,236

3,375

3,553

3,699

3,380

Charge-offs

Recoveries

Provision

139

(139)

(178)

(146)

319

End of period

3,375

3,236

3,375

3,553

3,699

Ratios

Allowance to total loans

1.26

1.28

1.30

1.28

1.30

Allowance to nonperforming assets

134.37

134.29

176.52

174.52

129.12

Allowance to nonperforming loans

134.37

134.29

176.52

176.11

129.99

Nonperforming assets

Non-accrual loans

29,400

30,815

22,615

22,742

30,989

Restructured loans

538

90+ Days Past Due, Still Accruing

229

461

177

223

Total non-performing loans

30,167

31,290

22,804

22,972

30,989

Other Real Estate Owned

209

Total non-performing assets

30,167

31,290

22,804

23,181

31,198

Three Months Ended

March 31,

December 31,

September 30,

June 30,

March 31,

Capital and liquidity

2026

2025

Tier 1 leverage ratio

11.57

11.32

10.96

8.80

8.66

Tier 1 risk-based capital ratio

15.12

14.51

14.19

11.18

10.97

Total risk-based capital ratio

18.67

18.02

17.80

14.73

14.53

Tangible common equity ratio (1)

9.85

9.54

9.21

6.70

6.59

(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)

March 31,

December 31,

September 30,

June 30,

March 31,

2026

2025

Tangible Common Equity

Total Shareholder's Equity - GAAP

552,243

543,474

499,028

404,137

397,434

Less: Preferred Equity

Less: Goodwill and intangible assets

142,774

143,538

132,276

132,631

133,026

Tangible common equity (Non-GAAP)

409,469

399,936

366,752

271,506

264,408

Total Shares Outstanding

20,783,348

20,746,474

19,312,726

15,529,342

15,519,072

Tangible book value per share

19.70

19.28

18.99

17.48

17.04

Tangible Assets

Total Assets - GAAP

4,298,322

4,336,453

4,113,334

4,185,869

4,146,717

Less: Goodwill and intangible assets

142,774

143,538

132,276

132,631

133,026

Tangible assets (Non-GAAP)

4,155,548

4,192,915

3,981,058

4,053,238

4,013,691

Tangible common equity to tangible assets

9.85

9.54

9.21

6.70

6.59

Reconciliation of Non-GAAP Financial Measures

(Unaudited - dollars in thousands except share data)

Three Months Ended

March 31,

Efficiency ratio (non-GAAP):

2026

2025

Noninterest expense (GAAP)

29,873

27,126

Less: Amortization of intangible assets expense

696

332

Less: Acquisition related expenses

427

Noninterest expense (non-GAAP)

28,750

26,794

Net interest income (GAAP)

37,823

32,773

Plus: Taxable equivalent adjustment

612

622

Noninterest income (GAAP)

9,431

7,860

Less: Net gains (losses) on equity securities

(29)

Net interest income (FTE) plus non-interest income (non-GAAP)

47,833

41,284

Efficiency ratio (non-GAAP)

60.1

64.9

Reconciliation of Non-GAAP Financial Measures

(Unaudited - dollars in thousands except share data)

Three Months Ended

March 31,

December 31,

September 30,

June 30,

March 31,

Efficiency ratio (non-GAAP):

2026

2025

Noninterest expense (GAAP)

29,873

31,003

28,327

27,482

27,126

Less: Amortization of intangible assets expense

696

576

318

339

332

Less: Acquisition related expenses

427

3,424

664

Noninterest expense (non-GAAP)

28,750

27,003

27,345

27,138

26,794

Net interest income (GAAP)

37,823

36,451

34,545

34,814

32,773

Plus: Taxable equivalent adjustment

612

620

618

621

622

Noninterest income (GAAP)

9,431

9,884

9,633

6,589

7,860

Less: Net gains (losses) on equity securities

120

255

(74)

(29)

Net interest income (FTE) plus non-interest income (non-GAAP)

47,833

46,835

44,541

42,098

41,284

Efficiency ratio (non-GAAP)

60.1

57.7

61.4

64.5

64.9

Three Months Ended

March 31,

December 31,

September 30,

June 30,

March 31,

Net interest margin (non-GAAP):

2026

2025

Net interest income (GAAP)

37,823

36,451

34,545

34,814

32,773

Tax-equivalent adjustment

612

620

618

621

622

Net interest income (tax-equivalent)

38,435

37,071

35,163

35,435

33,395

Average earning assets (GAAP)

4,003,144

3,939,580

3,829,484

3,841,369

3,801,709

Unrealized loss adjustment

41,288

46,944

62,947

64,110

59,117

Adjusted average earning assets

4,044,432

3,986,524

3,892,431

3,905,479

3,860,826

Net interest margin (Non-GAAP)

3.85

3.69

3.58

3.64

3.51

Supplemental Financial Information

Consolidated Condensed Statement of Operations

(Unaudited - dollars in thousands except share data)

Three Months Ended

March 31, 2026

Non-Recurring

As Reported

Adjustments

As Adjusted

Interest income

55,809

Interest expense

17,986

Net interest income

37,823

Provision for credit losses

(768)

Provision for unfunded commitments

139

Net interest income after provision

38,452

Non-interest income

9,431

Non-interest expense

29,873

427

29,446

Income before taxes

18,010

(427)

18,437

Income tax expense

3,021

(69)

3,090

Net income

14,989

(358)

15,347

Earnings per common share

Basic

0.72

(0.02)

0.74

Diluted

0.72

(0.02)

0.74

Supplemental Financial Information

Consolidated Condensed Statement of Operations

(Unaudited - dollars in thousands except share data)

Three Months Ended

As Reported

March 31,

2026

December 31,

2025

September 30,

2025

June 30,

2025

Interest income

55,809

55,741

55,240

56,271

Interest expense

17,986

19,290

20,695

21,457

Net interest income

37,823

36,451

34,545

34,814

Provision for credit losses

(768)

724

378

1,171

Provision for unfunded commitments

139

(139)

(178)

(146)

Net interest income after provision

38,452

35,866

34,345

33,789

Non-interest income

9,431

9,884

9,633

6,589

Non-interest expense

29,873

31,003

28,327

27,482

Income before taxes

18,010

14,747

15,651

12,896

Income tax expense

3,021

2,480

2,891

1,881

Net income

14,989

12,267

12,760

11,015

Earnings per common share

Basic

0.72

0.61

0.68

0.71

Diluted

0.72

0.61

0.68

0.71

Net Interest Margin

3.85

3.69

3.58

3.64

As Adjusted

Interest income

55,809

55,741

55,240

54,650

Interest expense

17,986

19,290

20,695

21,457

Net interest income

37,823

36,451

34,545

33,193

Provision for credit losses

(768)

724

378

1,171

Provision for unfunded commitments

139

(139)

(178)

(146)

Net interest income after provision

38,452

35,866

34,345

32,168

Non-interest income

9,431

9,884

9,633

7,633

Non-interest expense

29,446

27,579

27,663

27,793

Income before taxes

18,437

18,171

16,315

12,008

Income tax expense

3,090

3,048

3,001

1,750

Net income

15,347

15,123

13,314

10,258

Earnings per common share

Basic

0.74

0.75

0.71

0.66

Diluted

0.74

0.75

0.71

0.66

Net Interest Margin

3.85

3.69

3.58

3.47

Three Months Ended

Non-Recurring Adjustments

March 31,

2026

December 31,

2025

September 30,

2025

June 30,

2025

Interest income

1,621

Interest expense

Net interest income

1,621

Provision for credit losses

Provision for unfunded commitments

Net interest income after provision

1,621

Non-interest income

(1,044)

Non-interest expense

427

3,424

664

(311)

Income before taxes

(427)

(3,424)

(664)

888

Income tax expense

(69)

(568)

(110)

131

Net income

(358)

(2,856)

(554)

757

Earnings per common share

Basic

(0.02)

(0.14)

(0.03)

0.05

Diluted

(0.02)

(0.14)

(0.03)

0.05

Net Interest Margin

0.00

0.17

Non-recurring adjustments summary:

First-Quarter 2026

The quarter ended March 31, 2026 was negatively impacted by non-recurring adjustments related to acquisition related expenses in conjunction with the previously announced merger with The Farmers Savings Bank that successfully closed in the fourth quarter of 2025. The expenses impacted net income for the quarter ended March 31, 2026 by approximately $0.4 million on a pre-tax basis.

Fourth-Quarter 2025

The quarter ended December 31, 2025 was negatively impacted by non-recurring adjustments related to acquisition related expenses in conjunction with the previously announced merger with The Farmers Savings Bank that successfully closed in the fourth quarter of 2025. The expenses impacted net income for the quarter ended December 31, 2025 by approximately $3.4 million on a pre-tax basis.

Third-Quarter 2025

The quarter ended September 30, 2025 was negatively impacted by non-recurring adjustments related to acquisition related expenses in conjunction with the previously announced merger with The Farmers Savings Bank that is successfully closed in the fourth quarter of 2025. The expenses impacted net income for the quarter ended September 30, 2025 by approximately $0.7 million on a pre-tax basis.

Second-Quarter 2025

The quarter ended June 30, 2025 was positively impacted by non-recurring adjustments to our loan and lease portfolio resulting from a core system conversion during the second quarter of 2025, which positively impacted net income for the quarter ended June 30, 2025 by approximately $0.6 million on a pre-tax basis, and the release of a reserve established in the third-quarter of 2024 for a reconciling item associated with a system conversion, which positively impacted net income for the quarter ended June 30, 2025 by approximately $0.3 million on a pre-tax basis.

SOURCE Civista Bancshares, Inc.