Civista Bancshares, Inc. reported its financial results for the third quarter and nine months ended September 30, 2024, reflecting notable changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the three months ended September 30, 2024, Civista recorded net income of $8,366,000, a decrease of 19.5% from $10,387,000 in the same period of 2023. Basic and diluted earnings per share fell to $0.53 from $0.66. The decline in net income was attributed to a significant increase in interest expense, which rose to $23,508,000 from $15,097,000, while total interest and dividend income increased to $52,741,000 from $46,601,000. Consequently, net interest income decreased to $29,233,000 from $31,504,000, leading to a reduced net interest margin of 3.16%, down from 3.63% in the prior year.

For the nine-month period, net income was $21,790,000, down from $33,309,000 in 2023, with basic and diluted earnings per share decreasing from $2.12 to $1.39. Total interest expense for the nine months surged to $68,106,000, a 79.8% increase from $37,876,000, while total interest and dividend income rose to $153,462,000 from $134,135,000.

Civista's total assets increased to $4,061,423,000 as of September 30, 2024, up 5.2% from $3,861,418,000 at year-end 2023. Total deposits also rose significantly to $3,223,732,000, an increase of $238,704,000. The company’s net loans reached $3,002,678,000, reflecting a 6.3% increase from $2,824,568,000 at the end of 2023, driven by growth in residential and commercial real estate loans.

Strategically, Civista completed the acquisition of Vision Financial Group, Inc. in Q4 2022, which was merged into Civista as Civista Leasing and Finance in August 2023. The company adopted the Current Expected Credit Losses (CECL) methodology effective January 1, 2023, resulting in an increase in the allowance for credit losses.

Noninterest income for the three months ended September 30, 2024, was $9,686,000, up from $8,125,000 in 2023, driven by increases in net gains on loan sales and wealth management fees. However, total noninterest expense rose to $27,981,000 from $26,622,000, primarily due to higher compensation costs.

Civista's capital ratios as of September 30, 2024, showed Total Risk-Based Capital at 13.8% and Tier I Risk-Based Capital at 10.3%, both down from the previous year-end. The company continues to manage its interest rate risk and liquidity effectively, maintaining a focus on increasing deposits and managing funding sources.