SANDUSKY, Ohio , July 24, 2025 /PRNewswire/ -- Civista Bancshares, Inc. (NASDAQ:CIVB) ("Civista") today reported net income of $11.0 million, or $0.71 per common share, for the quarter ended June 30, 2025.

Net income of $11.0 million, a 56% increase or $3.9 million compared to $7.1 million for the second quarter 2024, and $10.2 million in the first quarter of 2025.
Diluted earnings per common share of $0.71, for the second quarter of 2025, compared to $0.45 per diluted share, for the second quarter of 2024, and $0.66 per diluted share in the first quarter of 2025.
Efficiency ratio of 64.5%, compared to 72.6% for the second quarter of 2024 and 64.9% for the first quarter of 2025.
232 basis points cost of funds for the second-quarter of 2025, 30 basis points lower than the 261 basis points cost of funds in the second quarter of 2024.
The second-quarter included non-recurring items which positively impacted net income by approx. $0.9 million on a pre-tax basis, and $0.76 million on an after-tax basis.

CEO Commentary:

"Our strong second-quarter performance highlights continued momentum in net income and earnings per share," said Dennis G. Shaffer, CEO and President of Civista. "Earnings per share rose to $0.71, up from $0.66 in Q1 and $0.45 a year ago, reflecting the success of our strategic initiatives and our focus on disciplined growth, customer relationships, and long-term shareholder value."

"The announcement of our partnership with The Farmers Savings Bank marks an exciting step in expanding our presence in Northeast Ohio and reinforcing our foundation with a strong base of core deposits," said Shaffer. "This, along with our successful $80.5 million capital raise earlier this month, positions us well for future growth."

"We continue to maintain strong credit quality, which reflects the soundness of our underwriting and the strength of our customer relationships," said Shaffer. "As demand for housing and construction financing grows, we remain focused on providing tailored financial solutions that support the evolving needs of the communities we serve."

Results of Operations:

For the three-month periods ended June 30, 2025, March 31, 2025 and June 30, 2024 and the six-month periods ended June 30, 2025 and June 30, 2024.

Second-Quarter 2025 Highlights

Diluted earnings per common share of $0.71, for the second quarter of 2025, compared to $0.45 per diluted share, for the second quarter of 2024, and $0.66 per diluted share in the first quarter of 2025.
Net income of $11.0 million, an increase of 56% or $3.9 million compared to $7.1 million for the second quarter 2024, and $10.2 million in the first quarter of 2025.
Net interest margin (tax equivalent) of 3.64%, compared to 3.09% for the second quarter of 2024.
Net interest income of $34.8 million, up $7.1 million or 25.5% compared to the second quarter of 2024.
196 basis points cost of deposits for the second-quarter of 2025, down 4 basis points compared to the first-quarter of 2025, and 14 basis points lower than the 210 basis points in the second-quarter of 2024.
232-basis points cost of funds for the second-quarter of 2025, 30 basis points lower than the 262-basis points cost of funds in the second-quarter of 2024.
Noninterest expense of $27.5 million, $0.9 million or 3.2% lower than the second quarter of 2024.
Efficiency ratio of 64.5%, compared to 72.6% for the second quarter of 2024 and 64.9% for the first quarter of 2025.
Total period end loan growth of $47.1 million from first quarter 2025.
Return on Assets of 1.06%, compared to 0.72% for the second quarter of 2024.
Return on Equity of 11.02%, compared to 7.77% for the second quarter of 2024.
Allowance for credit losses on loans / total loans of 1.28%.
Based on the June 30, 2025, market close share price of $23.20, the $0.17 second quarter dividend is equivalent to an annualized yield of 2.93% and a dividend payout ratio of 23.96%.
The second-quarter included non-recurring items which positively impacted net income by approx. $0.9 million on a pre-tax basis, and $0.76 million on an after-tax basis.

Assets

Total assets at June 30, 2025, were $4.2 billion, an increase of $39.2 million, or 0.9% from March 31, 2025, and $87.4 million, or 2.1%, from December 31, 2024.

Loan and lease balances increased $47.1 million, or 1.5% since March 31, 2025, and $69.9 million, or 2.3% since December 31, 2024.
Commercial Real Estate continued to grow due to consistent demand in the non-owner and owner occupied categories.
Residential Real Estate has grown primarily due to more home construction loans as we meet the demand for housing and construction financing by our customers and communities.

Deposits & Borrowings

Total deposits at June 30, 2025, were $3.2 billion, a decrease of $42.7 million, or 1.32% from March 31, 2025, and a decrease of $15.7 million, or 0.5%, from December 31, 2024.

Noninterest-bearing demand deposits decreased $47.5 million from December 31, 2024, primarily due to a $51.9 million decrease in noninterest-bearing accounts related to commercial business deposits, partially offset by a $9.9 million increase in noninterest-bearing public funds.
Interest-bearing demand deposits increased $13.5 million from December 31, 2024, primarily due to a $27.9 million increase in interest-bearing public funds, somewhat offset by a $6.4 million decrease in Jumbo now deposits.
Savings and money markets decreased $26.3 million from December 31, 2024, primarily due to decreases of $8.3 million and $36.6 million in retail money market savings and ICS demand and money markets, respectively. This was partially offset by an increase of $20.1 million in business money market savings.
Time deposits increased $90.7 million from December 31, 2024, primarily due to a $69.8 million increase in Jumbo certificates of deposit and a $29.0 million increase in retail time certificates, partially offset by a $5.5 million decrease in reciprocal deposits.
Brokered deposits totaled $454.1 million at June 30, 2025, which included brokered certificate of deposits of $450.0 million and brokered money markets of $4.1 million. Brokered deposits decreased $46.1 million from December 31, 2024.
FHLB overnight advances totaled $433.5 million on June 30, 2025, up $73.5 million from March 31, 2025, and $94.5 million from December 31, 2024.
FHLB term advances totaled $1.1 million on June 30, 2025, down from $1.4 million March 31, 2025, and down from $1.5 million on December 31, 2024.

Net Interest Income and Net Interest Margin

Net interest income increased $7.1 million, or 25.5%, for the second quarter of 2025, compared to the same period last year. In the second quarter of 2025, net interest income was increased by $1.6 million from non-recurring adjustments resulting from the Civista Leasing and Finance Division core system conversion.

Interest income increased $5.7 million for the second quarter of 2025, compared to the same period last year, attributed to average interest-earning assets increasing $224.8 million coupled with a 26-basis point increase in asset yield.
Interest expense decreased $1.4 million for the second quarter of 2025, compared to the same period last year. This was due to a 107-basis point reduction in higher costing FHLB borrowings coupled with a 136-basis point reduction in time deposits mostly offset by $272.2 million average balance growth in total deposits, resulting in a net increase of $249.3 million in average interest-bearing liabilities when comparing the second quarter of 2025 to the same period last year.
Net interest margin increased 55-basis points to 3.64% for the second quarter of 2025, compared to 3.09% for the same period last year.

Net interest income increased $11.5 million, or 20.4%, for the six months ended June 30, 2025, compared to the same period last year. For the six months ended June 30, 2025, net interest income was increased by $1.6 million from non-recurring adjustments resulting from the Civista Leasing and Finance Division core system conversion.

Interest income increased $9.3 million for the six-months ended June 30, 2025, compared to the same period last year, attributed to average interest-earning assets increasing $237.1 million coupled with a 15-basis point increase in asset yield.
Interest expense decreased $2.2 million for the six months ended June 30, 2025, compared to the same period last year. This was due to a 106-basis point reduction in higher costing FHLB borrowings coupled with a 125-basis point drop in time deposits, mostly offset by $262.5 million average balance growth in deposits, resulting in a net increase of $267.6 million in average interest-bearing liabilities when comparing the six-months ended June 30, 2025, to the same period last year.
Net interest margin increased 41-basis points to 3.57% for the six months ended June 30, 2025, compared to 3.16% for the same period last year.

Credit

Provision for credit losses (including provision for unfunded commitments) decreased $0.7 million for the second quarter of 2025 to $1.0 million compared to $1.7 million for the same period last year, and decreased $0.6 million compared to $1.6 million in the first quarter of 2025.

Civista recorded net charge-offs of $1.0 million for the second quarter of 2025 compared to net charge-offs of $0.7 million for the same period of 2024, and $0.6 million in the first quarter of 2025.
The allowance for credit losses to loans ratio was 1.28% at June 30, 2025, compared to 1.30% at March 31, 2025, and 1.29% at December 31, 2024.
Non-performing assets at June 30, 2025, were $23.2 million, a decrease of $8.0 million or 25.7%, from March 31, 2025. The non-performing assets to assets ratio was 0.55% at June 30, 2025, and 0.75% at March 31, 2025. The decrease was primarily related to a loan pay-off occurring within the second quarter of 2025.
The allowance for credit losses to non-performing loans increased to 176.1% at June 30, 2025, from 120.8% at December 31, 2024.

Noninterest Income

Noninterest income totaled $6.6 million, a decrease of $3.8 million or 36.5%, when compared to the same period last year. In the second quarter of 2025, noninterest income was reduced by $1.0 million from non-recurring adjustments resulting from the Civista Leasing and Finance Division core system conversion.

Net gain/(loss) on equity securities decreased $0.1 million for the second quarter of 2025, compared to the same period last year, resulting from market valuation adjustments.
Lease revenue and residual income decreased $3.0 million for the second quarter of 2025 compared to the same period last year, mainly due to stronger lease originations in 2024 coupled with a one-time non-recurring adjustment aforementioned above.
Other income decreased $0.6 million for the second quarter of 2025 compared to the same period last year, primarily related to lower fee revenue from CLF.

Noninterest income totaled $14.4 million, a decrease of $4.2 million or 22.5%, when compared to the same period last year. For the six months ended June 30, 2025, noninterest income was reduced by $1.0 million from non-recurring adjustments resulting from the Civista Leasing and Finance Division core system conversion.

Net gain on sale of loans decreased $0.3 million for the six months ended June 30, 2025, compared to the same period last year, resulting from timing of selling loans.
Lease revenue and residual income decreased $2.8 million for the six months ended June 30, 2025, compared to the same period last year, due to stronger lease originations in 2024 coupled with a one-time non-recurring adjustment aforementioned above.
Other income decreased $1.3 million for the six month ended June 30, 2025, compared to the same period last year, primarily related to lower fee revenue from the leasing division.

Noninterest Expense

Noninterest expense totaled $27.5 million, a decrease of $0.9 million or 3.2%, when compared to the same period last year. In the second quarter of 2025, noninterest expense was reduced by $0.3 million from non-recurring adjustments resulting from the Civista Leasing and Finance Division core system conversion.

Compensation expense decreased $0.7 million for the second quarter of 2025 compared to the same period last year, primarily due to fewer employees and an increase in the deferral of salaries and wages related to the loan originations in the second quarter of 2025.
The quarter-to-date average number of full-time equivalent ("FTE") employees was 526 at June 30, 2025, compared with an average number of 537 for the same period in 2024.
Professional fees increased $0.5 million for the second quarter of 2025 compared to the same period last year, mainly due to utilizing consultants to assist in transitioning Civista Leasing and Finance Division to a new core processing system.
Equipment expense decreased $0.7 million for the second quarter of 2025 compared to the same period last year, due to normal equipment depreciation as well as decreases in equipment expense related to operating lease contracts.
The efficiency ratio was 64.5% for the quarter ended June 30, 2025, compared to 72.6% for the same period last year. The change in the efficiency ratio is primarily due to a 3.2% decrease in noninterest expenses, a 25.5% increase in net interest income, partially offset by a 36.5% decrease in noninterest income.

Noninterest expense totaled $54.6 million, a decrease of $1.2 million or 2.2%, when compared to the same period last year. For the six months ended June 30, 2025, noninterest expense was reduced by $0.3 million from non-recurring adjustments resulting from the Civista Leasing and Finance Division core system conversion.

Compensation expense decreased $2.1 million for the six months ended June 30, 2025 compared to the same period last year, primarily due to fewer employees, and an increase in the deferral of salaries and wages related to the loan originations as well as lower employee benefits costs in the first six months of 2025.
The year-to-date average number of FTE employees was 523 at June 30, 2025, compared with an average number of 538 for the same period in 2024.
Professional fees increased $1.5 million for the six months ended June 30, 2025, compared to the same period last year, mainly due to utilizing consultants to assist in transitioning Civista Leasing and Finance Division to a new core processing system.
Equipment expense decreased $1.1 million for the six months ended June 30, 2025, compared to the same period last year, due to normal equipment depreciation as well as decreases in equipment expense related to operating lease contracts.
The efficiency ratio was 64.7% for the six months ended June 30, 2025, compared to 72.4% for the same period last year. The change in the efficiency ratio is primarily due to a 2.2% decrease in noninterest expenses, a 20.4% increase in net interest income, partially offset by a 22.5% decrease in noninterest income.

Taxes

Civista's effective income tax rate for the second quarter of 2025 was 14.6% compared to 12.6% for the same period last year, and 14.8% for the first quarter of 2025.

Civista's effective income tax rate for the six months ended June 30, 2025, was 14.7% compared to 12.1% in the same period last year.

Capital

Total shareholders' equity at June 30, 2025, totaled $404.1 million, an increase of $6.7 million from March 31, 2025, and $15.6 million from December 31, 2024. This resulted from an increase of $15.9 million in retained earnings, partially offset by a reduction in accumulated other comprehensive loss of $0.7 million from December 31,2024.

Civista did not repurchase any shares in the second quarter of 2025 as the current repurchase plan is set to expire in April 2026. In January 2025, Civista liquidated 8,182 shares held by employees, at $20.39 per share, to satisfy tax obligations stemming from vesting of restricted shares.

Recent Developments

July 10, 2025, Civista Bancshares, Inc. announced the signing of a definitive merger agreement pursuant to which Civista will acquire The Farmers Savings Bank.

July 10, 2025, Civista Bancshares, Inc. announced an underwritten public offering of its common stock, including an overallotment option. The offering totaled 3,788,238 shares at a price of $21.25 per share, raising approximately $80,500,058.

Conference Call and Webcast

Civista Bancshares, Inc. will also host a conference call to discuss the Company's financial results for the second quarter of 2025 at 1:00 p.m. ET on Thursday, July 24, 2025. 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. second quarter 2025 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 $4.2 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 42 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' 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, 2024, 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. Information concerning these non-GAAP financial measures can be found in the 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 June 30,
	2025							2024
	Average				Yield/			Average				Yield/
Assets:	balance		Interest		rate *			balance		Interest		rate *
Interest-earning assets:
Loans **	$	3,136,091	$	49,972		6.39	%	$	2,964,377	$	44,946		6.10	%
Taxable securities ***		404,104		3,751		3.42	%		351,497		3,070		3.11	%
Non-taxable securities ***		277,931		2,338		3.88	%		288,128		2,372		3.87	%
Interest-bearing deposits in other banks		23,243		210		3.61	%		15,807		205		5.22	%
Total interest-earning assets ***	$	3,841,369	$	56,271		5.84	%	$	3,619,809	$	50,593		5.58	%
Noninterest-earning assets:
Cash and due from financial institutions		40,329							32,564
Premises and equipment, net		44,687							53,654
Accrued interest receivable		13,919							13,230
Intangible assets		132,887							134,473
Bank owned life insurance		63,302							61,871
Other assets		59,948							65,818
Less allowance for loan losses		(40,546)							(39,190)
Total Assets	$	4,155,895						$	3,942,229

Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Demand and savings	$	1,551,856	$	5,632		1.46	%	$	1,339,503	$	3,054		0.92	%
Time		986,644		9,926		4.04	%		926,831		12,451		5.40	%
Short-term FHLB borrowings		412,545		4,603		4.48	%		440,670		6,078		5.55	%
Long-term FHLB borrowings		1,260		8		2.57	%		2,031		12		2.38	%
Other borrowings		5,874		123		8.40	%		-		-		0.00	%
Subordinated debentures		104,145		1,165		4.49	%		103,999		1,247		4.83	%
Total interest-bearing liabilities	$	3,062,324	$	21,457		2.81	%	$	2,813,034	$	22,842		3.27	%
Noninterest-bearing deposits		652,092							703,046
Other liabilities		40,564							60,365
Shareholders' equity		400,915							365,784
Total Liabilities and Shareholders' Equity	$	4,155,895						$	3,942,229

Net interest income and interest rate spread			$	34,814		3.03	%			$	27,751		2.31	%

Net interest margin ***						3.64	%						3.09	%

* - 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 thousand and $631 thousand for the periods ended June 30, 2025 and 2024, 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 $64.1 million and $69.4 million, respectively. These adjustments were also made when calculating the yield on earning assets and the margin.

Average Balance Analysis
(Unaudited - Dollars in thousands)

	Six Months Ended June 30,
	2025							2024
	Average				Yield/			Average				Yield/
Assets:	balance		Interest		rate *			balance		Interest		rate *
Interest-earning assets:
Loans **	$	3,117,867	$	97,618		6.31	%	$	2,922,204	$	89,431		6.15	%
Taxable securities ***		400,518		7,306		3.37	%		351,156		6,004		3.06	%
Non-taxable securities ***		282,183		4,678		3.90	%		291,758		4,747		3.86	%
Interest-bearing deposits in other banks		21,081		402		3.84	%		21,062		539		5.15	%
Total interest-earning assets ***	$	3,821,649	$	110,004		5.78	%	$	3,586,180	$	100,721		5.62	%
Noninterest-earning assets:
Cash and due from financial institutions		41,758							31,123
Premises and equipment, net		45,541							54,317
Accrued interest receivable		13,744							12,977
Intangible assets		133,076							134,672
Bank owned life insurance		63,110							61,664
Other assets		59,271							62,414
Less allowance for loan losses		(40,252)							(38,273)
Total Assets	$	4,137,897						$	3,905,074

Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Demand and savings	$	1,565,328	$	11,360		1.46	%	$	1,361,364	$	7,039		1.04	%
Time		973,202		19,914		4.13	%		914,637		24,452		5.38	%
Short-term FHLB borrowings		384,224		8,532		4.48	%		384,679		10,593		5.54	%
Long-term FHLB borrowings		1,334		17		2.57	%		2,153		25		2.34	%
Other borrowings		6,150		268		8.78	%		-		-		0.00	%
Subordinated debentures		104,124		2,326		4.50	%		103,978		2,489		4.81	%
Total interest-bearing liabilities	$	3,034,362	$	42,417		2.82	%	$	2,766,811	$	44,598		3.24	%
Noninterest-bearing deposits		661,382							707,806
Other liabilities		43,174							62,331
Shareholders' equity		398,979							368,126
Total Liabilities and Shareholders' Equity	$	4,137,897						$	3,905,074

Net interest income and interest rate spread			$	67,587		2.96	%			$	56,123		2.38	%

Net interest margin ***						3.57	%						3.16	%

* - 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.
** - Average balance includes nonaccrual loans
*** - 2025 and 2024 average yield on investments were calculated by adjusting the average balances of taxable and nontaxable securities by unrealized losses of $61.6 million and $64.3 million, respectively. These adjustments were also made when calculating the yield on earning assets and the margin.

Noninterest income
(unaudited - dollars in thousands)	Three months ended June 30,
	2025		2024		$ Change		% Change
Service charges	$	1,564	$	1,488	$	76		5.1	%
Net gain (loss) on equity securities		(74)		74		(148)		-200.0	%
Net gain on sale of loans and leases		841		888		(47)		-5.3	%
ATM/Interchange fees		1,418		1,416		2		0.1	%
Wealth management fees		1,325		1,337		(12)		-0.9	%
Lease revenue and residual income		525		3,529		(3,004)		-85.1	%
Bank owned life insurance		386		367		19		5.2	%
Swap fees		53		65		(12)		-18.5	%
Other		551		1,213		(662)		-54.6	%
Total noninterest income	$	6,589	$	10,377	$	(3,788)		-36.5	%

Noninterest income
(unaudited - dollars in thousands)	Six months ended June 30,
	2025		2024		$ Change		% Change
Service charges	$	3,088	$	2,928	$	160		5.5	%
Net gain (loss) on equity securities		(103)		(67)		(36)		-53.7	%
Net gain on sale of loans and leases		1,445		1,751		(306)		-17.5	%
ATM/Interchange fees		2,744		2,799		(55)		-2.0	%
Wealth management fees		2,665		2,613		52		2.0	%
Lease revenue and residual income		2,421		5,203		(2,782)		-53.5	%
Bank owned life insurance		773		717		56		7.8	%
Swap fees		125		122		3		2.5	%
Other		1,291		2,568		(1,277)		-49.7	%
Total noninterest income	$	14,449	$	18,634	$	(4,185)		-22.5	%

Noninterest expense
(unaudited - dollars in thousands)	Three months ended June 30,
	2025		2024		$ Change		% Change
Compensation expense	$	15,011	$	15,740	$	(729)		-4.6	%
Net occupancy Expense		1,419		1,298		121		9.3	%
Contracted data processing		536		559		(23)		-4.1	%
FDIC Assessment		689		548		141		25.7	%
State franchise tax		634		479		155		32.4	%
Professional services		1,798		1,249		549		44.0	%
Equipment expense		1,764		2,434		(670)		-27.5	%
Amortization of core deposit intangible		338		366		(28)		-7.7	%
ATM/Interchange expense		683		632		51		8.1	%
Marketing		289		445		(156)		-35.1	%
Software maintenance expense		1,294		1,176		118		10.0	%
Other		3,027		3,463		(436)		-12.6	%
Total noninterest expense	$	27,482	$	28,389	$	(907)		-3.2	%

Noninterest expense
(unaudited - dollars in thousands)	Six months ended June 30,
	2025		2024		$ Change		% Change
Compensation expense	$	29,054	$	31,197	$	(2,143)		-6.9	%
Net occupancy expense		3,053		2,666		387		14.5	%
Contracted data processing		1,103		1,104		(1)		-0.1	%
FDIC Assessment		1,562		1,032		530		51.4	%
State franchise tax		1,160		964		196		20.3	%
Professional services		3,888		2,398		1,490		62.1	%
Equipment expense		3,867		4,969		(1,102)		-22.2	%
Amortization of core deposit intangible		670		757		(87)		-11.5	%
ATM/Interchange expense		1,263		1,257		6		0.5	%
Marketing		585		924		(339)		-36.7	%
Software maintenance expense		2,571		2,365		206		8.7	%
Other		5,832		6,198		(366)		-5.9	%
Total noninterest expense	$	54,608	$	55,831	$	(1,223)		-2.2	%

End of period loan and lease balances
(unaudited - dollars in thousands)
	June 30,		December 31,
	2025		2024		$ Change		% Change
Commercial and Agriculture	$	338,598	$	328,488	$	10,110		3.1	%
Commercial Real Estate:
Owner Occupied		378,248		374,367		3,881		1.0	%
Non-owner Occupied		1,263,612		1,225,991		37,621		3.1	%
Residential Real Estate		815,408		763,869		51,539		6.7	%
Real Estate Construction		277,643		305,992		(28,349)		-9.3	%
Farm Real Estate		23,866		23,035		831		3.6	%
Lease financing receivable		42,758		46,900		(4,142)		-8.8	%
Consumer and Other		10,991		12,588		(1,597)		-12.7	%
Total Loans	$	3,151,124	$	3,081,230	$	69,894		2.3	%

End of period deposit balances
(unaudited - dollars in thousands)
	June 30,		December 31,
	2025		2024		$ Change		% Change
Noninterest-bearing demand	$	647,609	$	695,094	$	(47,485)		-6.8	%
Interest-bearing demand		433,089		419,583		13,506		3.2	%
Savings and money market		1,100,660		1,126,974		(26,314)		-2.3	%
Time deposits		560,702		469,954		90,748		19.3	%
Brokered deposits		454,147		500,265		(46,118)		-9.2	%
Total Deposits	$	3,196,207	$	3,211,870	$	(15,663)		-0.5	%

Allowance for Credit Losses
(dollars in thousands)
	Three months ended June 30,
	2025		2024
Beginning of period	$	40,284	$	38,849
Charge-offs		(1,092)		(887)
Recoveries		92		157
Provision		1,171		1,800
End of period	$	40,455	$	39,919

Allowance for Credit Losses
(dollars in thousands)
	Six months ended June 30,
	2025		2024
Beginning of period	$	39,669	$	37,160
Charge-offs		(2,068)		(1,538)
Recoveries		435		455
Provision		2,419		3,842
End of period	$	40,455	$	39,919

Allowance for Unfunded Commitments
(dollars in thousands)
	Three months ended June 30,
	2025		2024
Beginning of period	$	3,699	$	3,851
Provision		(146)		(145)
End of period	$	3,553	$	3,706

Allowance for Unfunded Commitments
(dollars in thousands)
	Six months ended June 30,
	2025		2024
Beginning of period	$	3,380	$	3,901
Provision		173		(195)
End of period	$	3,553	$	3,706

(dollars in thousands)	June 30,		December 31,
	2025		2024
Non-accrual loans	$	22,742	$	30,950
Restructured loans		7		1,677
90+ Days Past Due, Still Accruing		223		225
Total non-performing loans		22,972		32,852
Other Real Estate Owned		209		-
Total non-performing assets	$	23,181	$	32,852

Civista Bancshares, Inc. Financial Highlights (Unaudited, dollars in thousands, except share and per share amounts)

Consolidated Condensed Statement of Operations

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2025			2024			2025			2024

Interest income	$	56,271		$	50,593		$	110,004		$	100,721
Interest expense		21,457			22,842			42,417			44,598
Net interest income		34,814			27,751			67,587			56,123
Provision for credit losses		1,171			1,800			2,419			3,842
Provision for unfunded commitments		(146)			(145)			173			(195)
Net interest income after provision		33,789			26,096			64,995			52,476
Noninterest income		6,589			10,377			14,449			18,634
Noninterest expense		27,482			28,389			54,608			55,831
Income before taxes		12,896			8,084			24,836			15,279
Income tax expense		1,881			1,020			3,653			1,855
Net income		11,015			7,064			21,183			13,424
Preferred stock dividends		-			-			-			-
Net income available
to common shareholders	$	11,015		$	7,064		$	21,183		$	13,424

Dividends paid per common share	$	0.17		$	0.16		$	0.34		$	0.32

Earnings per common share
Basic
Net income	$	11,015		$	7,064		$	21,183		$	13,424
Less allocation of earnings and
dividends to participating securities		45			266			72			492
Net income available to common
shareholders - basic	$	10,970		$	6,798		$	21,111		$	12,932
Weighted average common shares outstanding		15,524,490			15,729,049			15,506,750			15,712,499
Less average participating securities		96,692			591,712			81,784			576,528
Weighted average number of shares outstanding
used to calculate basic earnings per share		15,427,798			15,137,337			15,424,966			15,135,971

Earnings per common share
Basic	$	0.71		$	0.45		$	1.37		$	0.85
Diluted	$	0.71		$	0.45		$	1.37		$	0.85

Selected financial ratios:
Return on average assets		1.06	%		0.72	%		1.03	%		0.69	%
Return on average equity		11.02	%		7.77	%		10.71	%		7.33	%
Dividend payout ratio		23.96	%		35.63	%		24.89	%		37.46	%
Net interest margin (tax equivalent)		3.64	%		3.09	%		3.57	%		3.16	%
Effective tax rate		14.59	%		12.62	%		14.71	%		12.10	%

Selected Balance Sheet Items
(Dollars in thousands, except share and per share amounts)

	June 30,			December 31,
	2025			2024
	(unaudited)			(unaudited)

Cash and due from financial institutions	$	73,858		$	63,155
Investment in time deposits		715			1,450
Investment securities		645,228			650,488
Loans held for sale		10,733			665
Loans		3,151,124			3,081,230
Less: allowance for credit losses		(40,455)			(39,669)
Net loans		3,110,669			3,041,561
Other securities		36,195			30,352
Premises and equipment, net		42,922			47,166
Goodwill and other intangibles		132,631			133,403
Bank owned life insurance		63,555			62,783
Other assets		69,363			67,446
Total assets	$	4,185,869		$	4,098,469

Total deposits	$	3,196,207		$	3,211,870
Short-term Federal Home Loan Bank advances		433,500			339,000
Long-term Federal Home Loan Bank advances		1,103			1,501
Subordinated debentures		104,172			104,089
Other borrowings		5,379			6,293
Accrued expenses and other liabilities		41,371			47,214
Total liabilities		3,781,732			3,709,967
Common shares		312,589			312,037
Retained earnings		221,321			205,408
Treasury shares		(75,753)			(75,586)
Accumulated other comprehensive loss		(54,020)			(53,357)
Total shareholders' equity		404,137			388,502
Total liabilities and shareholders' equity	$	4,185,869		$	4,098,469

Shares outstanding at period end		15,529,342			15,487,667
Book value per share	$	20.13		$	20.15
Equity to asset ratio		7.47	%		7.61	%

Selected asset quality ratios:
Allowance for credit losses to total loans		1.28	%		1.29	%
Non-performing assets to total assets		0.55	%		0.80	%
Allowance for credit losses to non-performing loans		176.11	%		120.75	%

Non-performing asset analysis
Nonaccrual loans	$	22,742		$	30,950
Restructured loans		7			1,677
Other real estate owned		209			-
90+ Days Past Due, Still Accruing		223			225
Total	$	23,181		$	32,852

Supplemental Financial Information
(Unaudited - dollars in thousands except share data)

	June 30,		March 31,		December 31,		September 30,		June 30,
End of Period Balances	2025		2025		2024		2024		2024

Assets
Cash and due from banks	$	73,858	$	90,456	$	63,155	$	74,662	$	55,760
Investment in time deposits		715		960		1,450		1,450		1,450
Investment securities		645,228		648,537		650,488		629,113		611,866
Loans held for sale		10,733		4,324		665		8,299		5,369
Loans and leases		3,151,124		3,104,036		3,081,230		3,043,946		3,014,996
Allowance for credit losses		(40,455)		(40,284)		(39,669)		(41,268)		(39,919)
Net Loans		3,110,669		3,063,752		3,041,561		3,002,678		2,975,077
Other securities		36,195		32,592		30,352		32,633		37,615
Premises and equipment, net		42,922		45,107		47,166		49,967		52,142
Goodwill and other intangibles		132,631		133,026		133,403		133,829		134,227
Bank owned life insurance		63,555		63,170		62,783		62,912		63,367
Other assets		69,363		64,793		67,446		65,880		75,041
Total Assets	$	4,185,869	$	4,146,717	$	4,098,469	$	4,061,423	$	4,011,914

Liabilities
Total deposits	$	3,196,207	$	3,238,888	$	3,211,870	$	3,223,732	$	2,977,616
Federal Home Loan Bank advances - short term		433,500		360,000		339,000		287,047		500,500
Federal Home Loan Bank advances - long term		1,103		1,355		1,501		1,598		1,841
Subordinated debentures		104,172		104,130		104,089		104,067		104,026
Other borrowings		5,379		6,140		6,293		6,319		7,156
Accrued expenses and other liabilities		41,371		38,770		47,214		44,222		46,967
Total liabilities		3,781,732		3,749,283		3,709,967		3,666,985		3,638,106

Shareholders' Equity

Civista Bancshares, Inc. Announces Second-Quarter 2025 Financial Results of $0.71 per Common Share, up 58% or $0.26 per Common Share from Second-Quarter 2024