Is Market views Favorable For financing? Civista Bancshares, Inc. (NASDAQ: CIVB)

On 06 Nov 2019, Civista Bancshares, Inc. (NASDAQ: CIVB) stock observed trading -2.76% off 52-week high price. On the other end, the stock has been noted 45.02% away from low price over the last 52-weeks. The stock disclosed a move of 4.45% away from 50 day moving average and 5.33% away from 200 day moving average. Moving closer, we can see that shares have been trading 3.01% off 20-day moving average. It has market cap of $352.68M and dividend yield of 1.95%.

Civista Bancshares, Inc. (CIVB) stated net income accessible to ordinary shareholders of $7.5M, or $0.46 per diluted share, for the quarter ended September 30, 2019, contrast to a net loss of $3.6M, or ($0.31) per diluted share, for the quarter ended September 30, 2018.  Net income accessible to ordinary shareholders for the nine-month period ended September 30, 2019, was $25.5M or $1.54 per diluted share, contrast to $5.8M or $0.51 per diluted share, in the same period of 2018.

Adjusted Earnings

Financial results for the third quarter and nine months ended September 30, 2018 included $8.8M and $12.0M respectively, in pre-tax acquisition and integration expenses, as well as a pre-tax loss on sale of securities of $392 thousand, which was part of a restructuring of securities after the United Community Bancorp (“UCB”) acquisition.  Not Including these expenses, adjusted earnings were $4.8M, or $0.37 diluted earnings per share, for the third quarter of 2018 and $16.8M, or $1.37 diluted earnings per share, for the nine months ended September 30, 2018.

A reconciliation of adjusted earnings to net income according to accounting principles generally accepted in the United States (“GAAP”) is provided in the financial tables at the end of this press release.

“Once again, we have had a great quarter of earnings and growth.  Our loan growth for the third quarter was strong, at 12.4% annualized.  Our core diluted earnings per share for the quarter are up 24.3% contrast to 2018.  It has now been a full year since we brought on UCB.  The results since the acquisition have exceeded our expectations.  We also reported earlier this week that we will be redeeming our convertible preferred shares on December 20th.  We believe that the redemption will assist us in aligning our capital structure more fully with our planned plan,” stated Dennis G. Shaffer, President and CEO of Civista.

Results of Operations:

Net interest income increased $4.6M, or 29.0% for the third quarter of 2019, and $18.5M or 40.8% and for the nine months ended September 30, contrast to the same periods of 2018.  Interest income increased $6.1M, or 34.3% for the third quarter of 2019 and $23.6M or 47.2% for the nine-month period ended September 30.  Average earning assets increased $487.7M for the third quarter of 2019 and $519.5M for the nine-month period ended September 30.  The increase in average earning assets resulted in $5.6M and $18.6M of the increase in interest income, for the three and nine-month periods, respectively.  Earning asset yields increased 14 basis points for the third quarter and 45 basis points for the nine-month period ended September 30, 2019, accounting for $550 thousand and $5.0M increase in interest income.  Loan yields were influenced by the accretion of UCB related loan purchase accounting adjustments of ($209) thousand for the quarter and $1.8M year-to-date.  During the third quarter, we automated our accretion model related to the purchase accounting adjustments of UCB loans and consequently reviewed our assumptions.  Through that process, we determined that we needed to adjust the speed of accretion.  Accordingly, we made an adjustment during the quarter of ($209) thousand, which reduced our margin to 4.12%.  We estimate that the accretion impact on future quarters will be about a positive 15 basis points.

Interest expense increased $1.5M, or 74.8%, for the third quarter of 2019 and $5.0M, or 109.5%, for the nine months ended September 30 contrast to the same periods of 2018.  The cost of interest-bearing liabilities increased 25 basis points and 32 basis points, respectively. The increase in interest expense is Because of both a raise in average balances and a raise in rates.  Average balances for the third quarter increased $340.9M, resulting in $653 thousand of the increase, and $378.3M for the nine-month period, resulting in $2.1M of the increase.  The increase in rate accounted for $890 thousand and $2.9M of the increase in interest expense.

 The USA based company Civista Bancshares, Inc. moved with change of -0.40% to $22.55 with the total traded volume of 32438 shares in recent session versus to an average volume of 35.76K. The stock was observed in the 5 days activity at -0.09%. The one month performance of stock was 5.42%. CIVB’s shares are at 6.87% for the quarter and driving a 1.26% return over the course of the past year and is now at 29.45% since this point in 2018.  Right now the stock beta is 0.83. The average volatility for the week and month was at 1.27% and 2.43% respectively. There are 15.64M shares outstanding and 15.43M shares are floated in market.

 

Jasmine Gerber

Jasmine Gerber – Market Movers I am known as Jasmine Gerber, I am a writer and an industrialist by profession. My age is 32 years. My aim is to gather the attention of the targeted audience without being boring and unexciting. I like to utilize the free time in writing my views and thoughts for my book lovers or readers. My most preferred articles are usually about technology and business; however, I have written various topics in my articles. I do not have a specific genre. I get very creative when I have to express myself, I often sing, write or draw to portray my feelings. When it comes to my free time or you can say ‘ME-TIME’, I love to play with my cat, sleep an extra hour, or play my favorite video games.

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