Civista Bancshares Q1 NIM Up 16bps to 3.85% with $60M Deposit Growth
Credit quality remained strong in Q1 with lower loan balances reducing provisions, while loan production reached $214 million offset by $83 million early payoffs. Net interest margin rose 16 basis points to 3.85% as organic deposits grew over $60 million and the Farmers Savings Bank integration completed.
1. Q1 Financial Highlights
Civista reported $15 million net income in Q1, delivering 74 cents per share versus the 56-cent consensus. Revenue net of interest expense reached $47.3 million and net interest margin expanded 16 basis points to 3.85%.
2. Balance Sheet and Operations
Credit quality remained robust with a credit to provision reflecting lower loan balances and stable Ohio and Indiana economies. Loan production totaled $214 million, offset by $83 million of early payoffs, while core deposits rose over $60 million and brokered funding declined for six straight quarters. The core system conversion for Farmers Savings Bank concluded without major integration costs.
3. Outlook and Capital Actions
Management forecasts mid-single-digit loan and deposit growth for the rest of 2026 supported by a commercial pipeline up 102% year-over-year. Noninterest expenses are projected between $29.5 million and $30.7 million in H2, and a renewed $25 million buyback underscores confidence in current share valuations.