Start Time: 13:00 January 1, 0000 1:39 PM ET

Civista Bancshares, Inc. (NASDAQ:CIVB)

Q1 2022 Earnings Conference Call

April 28, 2022, 13:00 PM ET

Company Participants

Dennis Shaffer - President and CEO

Richard Dutton - SVP and COO

Charles Parcher - SVP and Chief Lending Officer

Conference Call Participants

Terry McEvoy - Stephens

Ben Gerlinger - Hovde Group

Michael Perito - Keefe, Bruyette & Woods

Nick Cucharale - Piper Sandler

Russell Gunther - D.A. Davidson

Operator

Before we begin, I would like to remind you that this conference call may contain forward-looking statements with respect to the future performance and financial condition of Civista Bancshares, Inc. that involve risks and uncertainties. Various factors could cause actual results to be materially different from any future results expressed or implied by such forward-looking statements. These factors are discussed in the company's SEC filings, which are available on the company's website. The company disclaims any obligation to update any forward-looking statements made during the call.

Additionally, management may refer to non-GAAP measures, which are intended to supplement, but not substitute the most directly comparable GAAP measures. The press release also available on the company's Web site contains the financial and other quantitative information to be discussed today, as well as the reconciliation of the GAAP to non-GAAP measures. This call will be recorded and made available on the Civista Bancshares' Web site at www.civb.com. [Operator Instructions]. At the conclusion of Mr. Shaffer's remarks, he and his Civista management team will take any questions you may have.

Now, I will turn the call over to Mr. Shaffer.

Dennis Shaffer

Good afternoon. This is Dennis Shaffer, President and CEO of Civista Bancshares, and I would like to thank you for joining us for our First Quarter 2022 Earnings Call.

I am joined today by Rich Dutton, SVP of the company and Chief Operating Officer of the bank; Chuck Parcher, SVP of the company and Chief Lending Officer of the bank; and other members of our executive team.

This morning, we reported net income of $8.5 million or $0.57 per diluted share for the first quarter of 2022. These results include approximately $0.03 per share of expense related to our Comunibanc acquisition. While these deal costs contributed to the 16.2% decrease in our earnings per share when compared to the first quarter of 2021, the primary reason for the decline was lower mortgage production.

During the first quarter of 2022, our net loans, exclusive of PPP, grew by $48 million or at an annualized growth rate of 10%. We continue to be on track with the Comunibanc transaction that was announced earlier this quarter. We view this as a low risk transaction with significant upside that will expand our footprint into Northwest Ohio and the Toledo MSA, and look forward to welcoming our new shareholders, employees and customers into the Civista family. We expect this transaction to close at the end of the second quarter.