EX-99.1 2 d922377dex991.htm EX-99.1

Investor Presentation First Quarter 2015 James O. Miller - Chairman, President & Chief Executive Officer Dennis G. Shaffer - Executive Vice President Richard J. Dutton - Senior Vice President, Chief Operating Officer Exhibit 99.1 1

Cautionary Statement Regarding Forward-Looking Information Comments made in this presentation include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to numerous assumptions, risks and uncertainties. Although management believes that the expectations reflected in the forward-looking statements are reasonable, actual results or future events could differ, possibly materially, from those anticipated in these forward-looking statements. The forward-looking statements speak only as of the date of this presentation, and Civista Bancshares, Inc. assumes no duty to update any forward-looking statements to reflect events or circumstances after the date of this presentation, except to the extent required by law. 2

Contact Information Civista Bancshares, Inc.’s common shares are traded on the NASDAQ Capital Market under the symbol “CIVB.” The Company’s depository shares, each representing 1/40 th ownership interest in a Series B Preferred Share, are traded on the NASDAQ Capital Market under the symbol “CIVBP.” Additional information can be found at: www.civb.com James O. Miller Chairman, President & Chief Executive Officer jomiller@civb.com Telephone: 888.645.4121 3

Corporate Overview 9 th Largest Publicly Traded Commercial Bank in Ohio Community Banking Focused Operations in 11 Ohio Counties – 27 Branches & 1 Loan Production Office Operations in Stable Ohio markets Acquisitive franchise poised for future growth Corporate Overview Full-service banking origination with diversified revenue streams – Commercial Banking – Retail Banking – Wealth Management – Mortgage Banking Key Facts 4 Corporate Rebranding NASDAQ: CIVB ¹ Market data as of May 4, 2015. As of March 31, 2015, $s millions Assets $1,407.2 Gross Loans $987.0 Deposits $1,197.3 Market Cap. ¹ $88.0

5 Financial Highlights Financial Highlights ($s in thousands, except per share data) March 31, 2015 March 31, 2014 % Change Balance Sheet Assets $1,407,239 $1,250,887 12.50% Gross Loans 987,024 857,913 15.05 Deposits 1,197,316 1,044,820 14.60 Performance Analysis Net Income Available to Common $2,767 2,057 34.52% ROAA 0.92% 0.81% 13.71 ROAE 10.84 9.34 16.02 ROATCE 16.84 14.62 15.14 Market Data ¹ Market Capitalization $86,350 $71,144 Price / Tangible Book Value 122.4% 122.6% Dividend Yield 1.81 2.17 ¹ Market data as of March 31, 2015.

6 Investment Highlights Experienced management team with strong track record Leading Ohio community bank franchise focused on rural and targeted urban markets Demonstrated growth and proven acquirer – Completed acquisition of TCNB Financial Corp. in 2015 Q1 – Opened Loan Production Office on east side of Cleveland (Mayfield Heights) Initiated unification of brand identity – rebranding Bank and Company Improved credit quality and solid reserve coverage Demonstrated earnings growth – Y-o-Y net income available to common shareholder’s growth of ~35% – ROATCE of 16.84% in Q1 2015 Improving operating leverage – Rightsizing branch network with projected annual cost savings of $450 thousand – Revised retirement plans, net impact of $195 thousand of cost savings in 2014 – Focused business strategies resulting in earnings growth

7 Experienced Management Team Chairman, President & CEO 40 years of banking experience Joined in 1987 James O. Miller SVP & Chief Operating Officer 11 years of banking experience Joined in 2007 Richard J. Dutton EVP, Chief Lending Officer & President of Civista Bank 28 years of banking experience Joined in 2009 Dennis G. Shaffer SVP & General Counsel 11 years of banking experience Joined in 2003 James E. McGookey SVP and Controller 25 years of banking experience Joined in 1989 Todd A. Michel SVP & Chief Risk Officer 18 years of banking experience Joined in 2013 John A. Betts SVP & Chief Credit Officer 29 years of banking experience Joined in 2011 Paul J. Stark

8 Branch Footprint Note: Branch information as of March 31, 2015. Sandusky / Akron / Cleveland, Ohio $556 million in loans $723 million in deposits 11 branch locations #1 deposit market share in Sandusky, Ohio with ~ 43% market share North Central Ohio $96 million in loans $184 million in deposits 7 branch locations ~40% deposit market share $259 million in loans $202 million in deposits 7 branch locations 23% deposit market share in the rural markets West Central Ohio Greater Dayton, Ohio $76 million in loans $88 million in deposits 3 branch locations ~1.47% deposit market share

9 Attractive Target Markets Sandusky / Akron / Cleveland North Central Ohio West Central Ohio Greater Dayton Ohio

10 Proven Acquirer & Attractive Organic Growth Acquired six banks from 1998 – 2015 serving to increase assets by approximately $920 million Expanded commercial loan growth in Columbus, Akron and Dayton markets – Since year-end 2010, loan portfolios in these markets have increased from $147 million to $329 million Low cost, locally generated deposit base Expanded residential mortgage lending with 2013 Q3 hiring of experienced lending team in the Columbus / Dublin, Ohio market Positioned to capitalize on loan opportunities in greater Cleveland, Akron, Columbus, Dayton and other potential Ohio-based urban markets Total Assets $s in millions Total Gross Loans $s in millions Total Deposits $s in millions

11 TCNB Transaction Highlights TCNB Financial Corp. Citizens National Bank of Southwestern Ohio Closed in March 2015 Single Bank Holding Company & Bank Organized in 1999 Total Assets of $105 million Expands Civista’s Presence into the Greater Dayton, Ohio Area – Dayton – Huber Heights – Miamisburg Expected to be Accretive to Earnings in 2015 Acquisitive Franchise Positioned for Future Growth

12 Successful Rebranding Brand Differentiation 316 “Citizens” Banks in the United States 16 “Citizens” Banks in Ohio Alone Citizens / Champaign Bank Branding Confusing for Existing Customers Avoid Customer Identity Confusion on the Internet Why Rebrand? NASDAQ: CIVB

13 Deposit Mix Financial information as of March 31, 2015. Q1 2015 Cost of Interest Bearing Deposits: 0.29% Total Deposits: $1,197 million Non-Interest Bearing Demand 38% Interest Bearing Demand 12% Savings 30% Certificates of Deposit 16% Brokered Deposits 4%

14 Loan Mix Financial information as of March 31, 2015. Q1 2015 Loan Yield: 4.49% Total Gross Loans: $987million CRE Non-Owner Occupied 25% CRE Owner Occupied 17% Single Family 24% C&I 11% Multi-family 7% Farmland & Agriculture 6% C&D & Land 8% Consumer & Other 2%

15 Improving Asset Quality Reserves / NPLs NCOs / Average Loans 3.16% 3.51% 3.32% 2.22% 1.57% 1.36% 2010 2011 2012 2013 2014 2015 Q1 70.82% 58.02% 53.05% 64.17% 77.18% 76.81% 2010 2011 2012 2013 2014 2015 Q1 2.84% 2.70% 2.42% 1.92% 1.56% 1.45% 2010 2011 2012 2013 2014 2015 Q1 1.46% 1.35% 1.01% 0.53% 0.43% 0.40% 2010 2011 2012 2013 2014 2015 Q1 Loan Loss Reserves / Gross Loans NPAs & 90+PD / Assets Loan Loss Reserves / Gross Loans NPAs & 90+PD / Assets

16 Asset Quality Improvement NPAs & 90+ Days Delinquent as of 3/31/2015 NPAs & 90+ Days Delinquent as of 12/31/2010 Gross Loans: $767 million Gross Loans: $987 million Nonaccrual Loans - Current, $8.5 Nonaccrual Loans - Past Due, $13.7 Restructured Loans, $8.6 OREO, $1.8 90+ Days Delinquent, $2.2 Nonaccrual Loans - Current, $8.3 Nonaccrual Loans - Past Due, $5.3 Restructured Loans, $5.0 OREO, $0.5

17 Peer Leading Net Interest Margin Source: SNL Financial. Comparable peers represents banks located in Ohio, Indiana, and Kentucky with total assets between $1.0 billion and $5.0 billion; excludes merger targets. 3.94% 4.00% 3.98% 3.79% 3.79% 3.65% 3.88% 3.83% 3.71% 3.57% 3.59% 3.53% 2010Y 2011Y 2012Y 2013Y 2014 2015 Q1 CIVB Peer Median

18 Effectively Managing Duration 3.55 3.38 1.54 1.63 Q1 2015 Q1 2014 Assets Liabilities Asset duration of less than two years – Sell fixed rate mortgages – Encourage variable rate commercial lending or swap into variable, if appropriate – Limit fixed rate terms to five years Liability duration greater than three years – Focus on low-cost “sticky” demand deposits – Don’t overprice or overextend time deposits

19 Non-Interest Metrics & Initiatives Net Operating Expense / Average Assets Non-Interest Income / Average Assets 0.85% 0.89% 0.98% 1.00% 1.11% 1.29% 2010 2011 2012 2013 2014 2015 Q1 2.20% 2.24% 2.31% 2.63% 2.19% 1.82% 2010 2011 2012 2013 2014 2015 Q1 Growing fee income platform Wealth management – ~$464 million in AUM – Earned $3.2 million during 2014, a 19% increase from the prior year Income tax refund processing program – Evaluated / refined over five tax seasons – Specialized payment processing earned $1.6 and $1.9 million during Q1 2015 and 2014 Improving efficiency and operating leverage Investment in people ¹ Revised retirement plan in Q2 2014 reducing net expenses $195 thousand in 2014 Rightsizing branch network – Projected annual cost savings of $450 thousand ¹ From AB Magazine, November © 2014 SourceMedia, Inc.. All rights reserved. Used by permission and protected by the Copyright Laws of the United States. The printing, copying, redistribution, or retransmission of this Content without expressed written permission is prohibited. Civista Bank, formerly Citizens and Champaign Banks.

20 Profitability & Returns Analysis ¹ LTM basis. Diluted Earnings per Share ROATCE ROAA Net Income Available to Common Shareholders

21 Increasing Shareholder Value Stock Price Dividend yield of 1.81% Dividend payout ratio in 2014 was approximately 15.4% Price / Tangible Book Value of 125% as compared to peer average of 142% ¹ Price / LTM EPS of 12.2x as compared to peer average of 13.4x ¹ 61.15% Total Return in 2014 Source: SNL Financial. Market Data as of May 4, 2015. ¹ Comparable peers represents banks located in Ohio, Indiana, and Kentucky with total assets between $1.0 billion and $5.0 billion; excludes merger targets.

22 Commitment to Shareholders Long-term Shareholder Value through Growth and Profitability

23 Strategic Focus & Growth Strategy Organic growth – Capitalize on commercial and consumer lending opportunities – Grow core deposit base in rural and targeted urban markets – Identify and evaluate loan production opportunities in select metro markets Acquisition opportunities – Rural – Urban Improving asset quality Efficiency and operating leverage Capital

24 Why Invest in CIVB? Strong and Seasoned Management Team Leading Ohio Community Banking Franchise Proven and Disciplined Acquirer Platform to Support Future Growth Attractively Valued Versus Peers

Appendix 25

Operating Results ($s in thousands, except per share data) For the Years Ended December 31, LTM Q1 2009 2010 2011 2012 2013 2014 2015 Net Interest Income $40,273 $41,461 $41,361 $40,578 $39,974 $41,866 $42,616 Provision for Loan Losses 13,323 17,940 9,800 6,400 1,100 1,500 1,150 Noninterest Income 9,633 9,154 9,971 11,200 12,662 13,874 13,652 Noninterest Expense 35,165 35,774 36,727 38,074 43,384 41,550 41,725 Net Income 1,655 (1,268) 3,958 5,579 6,179 9,528 9,987 Net Income Available to Common Shareholders $700 ($2,444) $2,782 $4,386 $5,020 $7,655 $8,366 Diluted EPS per Common Share $0.09 ($0.32) $0.36 $0.57 $0.64 $0.85 $0.92 Return on Average Assets (ROAA) 0.15% (0.11%) 0.35% 0.49% 0.53% 0.77% 0.80% Return on Average Equity (ROAE) 1.68 (1.27) 3.96 5.36 5.97 8.34 8.72

27 Thank You