The following is a summary of the Civista Bancshares, Inc. (CIVB) Q1 2024 Earnings Call Transcript:
Financial Performance:
Civista Bancshares reported a Q1 net income of $6.4 million or $0.41 per diluted share, a decline from Q1 2023.
Decreased income due to departure from a tax refund processor, changes in overdraft processing, and absence of a one-time bonus from a debit brand agreement renegotiation.
Increased allowance for credit losses leading to higher reserves.
The company's funding cost increased by 35 basis points to 2.54%.
Net interest margin contracted by 22 basis points, standing at 3.22% for the quarter.
Total loans and leases showed an annualized growth rate of 5%.
Business Progress:
Loan and lease portfolio growth reported, signaling the strength of the markets and organization.
Initiatives to reduce costs and reliance on broker and wholesale funding have been launched.
Civista Bancshares plans to participate in the Ohio Home Buyers Plus Program for tax incentives and subsidies.
-The company aims to reduce reliance on wholesale and borrowed funding, increase revenue, and decrease expenses.
Challenges in the M&A environment due to higher rates; the company plans to focus on building capital base.
Strong loan pipelines in the multifamily area in metro Ohio markets.
The company plans to achieve mid-single-digit growth in loan segments, but it is contingent on the competitive environment and funding capabilities.
Civista Bancshares is also exploring growth opportunities in the wealth management sector and planning to attract more deposit relationships.
More details: Civista Bancshares IR
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