Net income, for the first-quarter of 2026 of $15.0 million, a $4.8 million or 47% increase compared to $10.2 million for the first-quarter 2025, and a $2.7 million or 22% increase compared to $12.3 million for the fourth-quarter 2025.
Diluted earnings per common share of $0.72, for the first quarter of 2026, a $0.06 or 9% increase compared to $0.66 per diluted share, for the first quarter of 2025, and $0.11 or 18% increase compared to $0.61 per diluted share, for the fourth quarter of 2025.
First-quarter 2026 results include non-recurring, acquisition-related adjustments associated with the merger of FSB that negatively impacted net income by approximately $0.4 million on a pre-tax and after-tax basis, or $0.02 per common share.
Net interest margin (tax‑equivalent) expanded to 3.85% during the first quarter of 2026, increasing 34 basis points year‑over‑year and 16 basis points sequentially, reflecting lower funding costs and disciplined balance‑sheet management.
Cost of funds of 196 basis points for the first-quarter of 2026, 35 basis points lower than the 231 basis points cost of funds for the first-quarter of 2025, and 12 basis points lower than the 208 basis points in fourth-quarter 2025.
Cost of deposits of 181 basis points for the first-quarter of 2026, down 19 basis points compared to 200 basis points in the first-quarter of 2025, and 11 basis points lower than the 192 basis points in the fourth-quarter of 2025.
Efficiency ratio for the first quarter of 2026 was 60.1%, compared to 64.9% for the first quarter of 2025.
Total deposits increased $35.4 million, or 1.0%, in the first quarter of 2026 compared to the fourth quarter of 2025.
Return on Assets of 1.41%, compared to 1.00% for the first quarter of 2025 and 1.14% for the fourth quarter of 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
Net income of $15.0 million, a $4.8 million or 47% increase compared to $10.2 million for the first quarter 2025, and a $2.7 million or 22% increase compared to the $12.3 million for the fourth quarter of 2025.
Diluted earnings per common share of $0.72, for the first quarter of 2026, a $0.06 or 9% increase compared to $0.66 per diluted share, for the first quarter of 2025, and $0.11 or 18% increase compared to $0.61 per diluted share, for the fourth quarter of 2025.
Successfully completed the core system conversion and operational integration of FSB, following its acquisition in the fourth quarter of 2025.
The first-quarter of 2026 included non-recurring adjustments related to the merger of FSB that closed in the fourth quarter of 2025 that negatively impacted net income by approximately $0.4 million on a pre-tax and after-tax basis, or $0.02 per common share.
Net interest margin (tax‑equivalent) expanded to 3.85% during the first quarter of 2026, increasing 34 basis points year‑over‑year and 16 basis points sequentially, reflecting lower funding costs and disciplined balance‑sheet management.
Net interest income of $37.8 million, up $5.1 million or 15.4% compared to the first quarter of 2025, and up $1.4 million or 3.8% compared to the fourth quarter of 2025.
Total deposits increased $35.4 million, or 1.0%, in the first quarter of 2026 compared to the fourth quarter of 2025.
Cost of deposits of 181 basis points for the first-quarter of 2026, down 19 basis points compared to 200 basis points in the first-quarter of 2025, and 11 basis points lower than the 192 basis points in the fourth-quarter of 2025.
Cost of funds of 196 basis points for the first-quarter of 2026, 35 basis points lower than the 231 basis points cost of funds for the first-quarter of 2025, and 12 basis points lower than the 208 basis points in fourth-quarter 2025.
Efficiency ratio for the first quarter of 2026 was 60.1%, compared to 64.9% for the first quarter of 2025.
Return on average assets improved to 1.41%, compared to 1.00% for the first quarter of 2025 and 1.14% for the fourth quarter of 2025.
Return on average equity increased to 10.97%, compared to 10.39% for the first quarter of 2025 and 9.26% for the fourth quarter of 2025.
Allowance for credit losses on loans / total loans of 1.26%.
Tangible book value per share was $19.70 at March 31, 2026.
Declared a quarterly cash dividend of $0.18 per share, an increase from $0.17 per share in the prior quarter.
Based on the March 31, 2026 closing share price of $22.79, the $0.18 quarterly dividend represents an annualized yield of 3.16% and a payout ratio of 24.91%.
Assets
Total assets at March 31, 2026, were $4.3 billion, a decrease of $38.1 million, or 0.9% from December 31, 2025.
Loan and lease balances decreased $40.4 million, or 1.2% since December 31, 2025 reflecting seasonal construction runoff and loan payoffs.
Real Estate Construction loans decreased $30.9 million since December 31, 2025, mainly due to seasonal construction patterns that primarily sees its lowest activity in the first quarter combined with projects moving from temporary to permanent financing.
Commercial Real Estate Non-Owner Occupied decreased $6.2 million since December 31, 2025 primarily related to loan payoffs.
Residential Real Estate decreased $1.0 million since December 31, 2025 reflecting stable demand and portfolio runoff offsetting new originations.
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.
Interest-bearing demand deposits increased $18.9 million from December 31, 2025, primarily due to increases of $18.6 million and $5.0 million in interest-bearing public funds and business interest-bearing demand deposits, respectively, slightly offset by decreases of $4.6 million and $2.8 million in jumbo demand deposits and retail interest-bearing demand deposits, respectively.
Savings and money markets increased $56.7 million from December 31, 2025, primarily due to increases of $27.0 million, $13.3 million, $8.8 million, $6.1 million, and $4.2 million in business money market deposits, ICS money market deposits, public fund money market, retail money market deposits, and statement savings, respectively.
Time deposits decreased $16.9 million from December 31, 2025, primarily due a decrease of $15.4 million in jumbo CDs.
Brokered deposits totaled $377.1 million at March 31, 2026, which included brokered certificate of deposits of $375.0 million and brokered money markets of $2.1 million. Brokered deposits decreased $25.0 million from December 31, 2025, strategically reducing the balances of brokered deposits.
FHLB short-term advances totaled $100.0 million on March 31, 2026, down $75.0 million 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.
Interest income increased $2.1 million year over year, primarily reflecting growth in average interest‑earning assets, partially offset by a modest decline in asset yields due to a decrease in interest rates.
Interest expense decreased $3.0 million year over year, as lower borrowing costs from reduced short‑term FHLB advances and improved time deposit pricing more than offset the impact of continued growth in interest‑bearing deposit balances.
Net interest margin increased 34 basis points to 3.85% for the first quarter of 2026, compared to 3.51% for the same period last year, reflecting disciplined deposit pricing, a reduced reliance on higher‑cost wholesale funding, and favorable repricing dynamics, partially offset by pressure from changes in asset mix.
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.
Civista recorded net charge-offs of $0.7 million for the first quarter of 2026 compared to net charge-offs of $0.6 million for the same period last year.
The allowance for credit losses to loans ratio was 1.26% at March 31, 2026, compared to 1.30% at March 31, 2025, and 1.28% at December 31, 2025.
The allowance for credit losses was $40.5 million at March 31, 2026, compared to $40.3 million at March 31, 2025, and $42.0 million at December 31, 2025.
Non-performing assets at March 31, 2026, were $30.2 million, a decrease of $1.0 million or 3.3%, from December 31, 2025. The non-performing assets to assets ratio was 0.70% and 0.72% at March 31, 2026 and December 31, 2025, respectively.
The allowance for credit losses to non-performing loans increased slightly to 134.8% at March 31, 2026, from 134.3% at December 31, 2025.
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.
Service charges increased $0.2 million for the first quarter of 2026, compared to the same period last year, primarily from higher retail service charges, including retail overdraft fees.
Net gain on sale of loans increased $1.0 million for the first quarter of 2026, compared to the same period last year, due to the changes in the interest rate environment.
Lease revenue and residual income decreased $0.3 million for the first quarter of 2026 compared to the same period last year, mainly due to a decrease in operating lease originations in the first quarter of 2026 as the Company continues to shift towards finance leases.
Other income increased $0.4 million for the first quarter of 2026 compared to the same period last year. Income from the Company's captive insurance subsidiary, CIVB Risk Management, recorded $0.5 million of income in the first quarter of 2026 related to the closure of three claims without payment, resulting in a reduction of ceded reserves.
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.
Compensation expense increased $2.2 million for the first quarter of 2026 compared to the same period last year, primarily due to increases in salaries, commissions, and medical expenses associated from operating with higher full-time equivalent (FTE) employees year-over-year.
The quarter-to-date average number of FTE employees was 535 at March 31, 2026, compared with an average number of 520 for the same period in 2025.
Other expenses increased $0.5 million for the first quarter of 2026 compared to the same period last year, mainly due to the aforementioned acquisition-related expenses.
The efficiency ratio was 60.1% for the quarter ended March 31, 2026, compared to 64.9% for the same period last year. The change in the efficiency ratio is primarily due to a 10.1% increase in non-interest expenses, mostly offset by a 15.4% increase in net interest income and a 20.0% increase in non-interest income.
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 WebcastCivista 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 BancsharesCivista 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 StatementsThis 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 MeasuresThis 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
5
2.73
%
1,408
9
2.56
%
Other borrowings
3,913
72
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
33
(29)
62
213.8
%
Net gain on sale of loans and leases
1,605
604
1,001
165.7
%
ATM/Interchange fees
1,386
1,326
60
4.5
%
Wealth management fees
1,433
1,340
93
6.9
%
Lease revenue and residual income
1,630
1,896
(266)
-14.0
%
Bank owned life insurance
390
387
3
0.8
%
Swap fees
56
72
(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
28
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
90
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
14
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
28
44
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)
(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
$
