Third quarter 2026
Filed Oct 22, 2026Civista Bancshares, Inc. Announces Third Quarter 2026 Net Income of $16.0 million, up 25.5% from Third Quarter 2025
Third-quarter net income increased 25.5% year over year and 11.9% sequentially, supported by a 35-basis-point year-over-year expansion in net interest margin, lower funding costs, loan growth and improved efficiency.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Three months ended September 30, 2026 interest incomeGAAP | $57.82M | – | – |
| Three months ended September 30, 2026 interest expenseGAAP | $18.39M | – | – |
| Three months ended September 30, 2026 net interest incomeGAAP | $39.43M | – | 14.1% |
| Three months ended September 30, 2026 provision for credit lossesGAAP | $ 823 | – | – |
| Three months ended September 30, 2026 provision for unfunded commitmentsGAAP | $ 472 | – | – |
| Three months ended September 30, 2026 net interest income after provisionGAAP | $38.13M | – | – |
| Three months ended September 30, 2026 non-interest incomeGAAP | $9.65M | – | 0.2% |
| Three months ended September 30, 2026 non-interest expenseGAAP | $27.98M | – | -1.2% |
| Three months ended September 30, 2026 income before taxesGAAP | $19.81M | – | – |
| Three months ended September 30, 2026 income tax expenseGAAP | $3.79M | – | – |
| Three months ended September 30, 2026 net incomeGAAP | $16.02M | 11.9% | 25.5% |
| Three months ended September 30, 2026 basic earnings per common shareGAAP | $ 0.77 | – | – |
| Three months ended September 30, 2026 diluted earnings per common shareGAAP | $ 0.77 | – | – |
| Three months ended September 30, 2026 Pre-Provision Net Revenuenon-GAAP | $21.10M | – | – |
| Three months ended September 30, 2026 net interest marginnon-GAAP | 3.93 % | – | 35 basis points |
| Three months ended September 30, 2026 efficiency rationon-GAAP | 55.3 % | – | – |
| Three months ended September 30, 2026 return on average assetsother | 1.48 % | – | – |
| Three months ended September 30, 2026 return on average equityother | 11.21 % | – | – |
| Three months ended September 30, 2026 effective tax rateGAAP | 19.13 % | – | – |
| September 30, 2026 total assetsGAAP | $4.30B | – | – |
| September 30, 2026 total loansGAAP | $3.29B | 1.2% | – |
| September 30, 2026 total depositsGAAP | $3.48B | – | – |
| September 30, 2026 allowance for credit lossesGAAP | $42.40M | – | – |
| September 30, 2026 allowance for credit losses to total loansother | 1.29 % | – | – |
| September 30, 2026 total non-performing assetsGAAP | $27.65M | – | – |
| September 30, 2026 non-performing assets to total assetsother | 0.64 % | – | – |
| September 30, 2026 total shareholders' equityGAAP | $552.7M | – | – |
| September 30, 2026 tangible book value per sharenon-GAAP | $ 19.87 | – | – |
| Nine months ended September 30, 2026 net interest incomeGAAP | $115.8M | – | 13.4% |
| Nine months ended September 30, 2026 non-interest incomeGAAP | $28.09M | – | 16.6% |
| Nine months ended September 30, 2026 non-interest expenseGAAP | $86.50M | – | 4.3% |
| Nine months ended September 30, 2026 net incomeGAAP | $45.32M | – | – |
| Nine months ended September 30, 2026 diluted earnings per common shareGAAP | $ 2.18 | – | – |
| Nine months ended September 30, 2026 net interest marginnon-GAAP | 3.89 % | – | 31-basis points |
| Nine months ended September 30, 2026 efficiency rationon-GAAP | 57.8 % | – | – |
Capital returns
- Declared a quarterly cash dividend of $0.18 per share, consistent with the second quarter 2026.
- Dividends paid per common share were $ 0.18 for the three months ended September 30, 2026, compared with $ 0.17 for the three months ended September 30, 2025.
- Civista repurchased 82,075 shares in the first nine months ended September 30, 2026.
- For the nine months ended September 30, 2026, Civista liquidated 14,654 shares held by employees, at an average price of $22.00 per share, to satisfy tax obligations stemming from vesting of restricted shares.
- The current repurchase plan is set to expire in April 2027.
What drove it
- Net interest income increased $4.9 million, or 14.1%, for the third quarter of 2026, compared to the same period in 2025.
- Interest expense decreased $2.3 million year over year, mainly due to lower borrowing costs from reduced short-term FHLB advances coupled with disciplined deposit pricing.
- Net interest margin increased 35 basis points to 3.93% for the third quarter of 2026, reflecting disciplined deposit pricing, reduced reliance on higher-cost wholesale funding, favorable loan yields and earning asset mix management.
- Residential Real Estate increased $24.9 million since June 30, 2026, reflecting continued strength in residential lending activity and solid customer demand.
- Real Estate Construction loans increased $15.4 million since June 30, 2026, continuing the seasonal increase in construction lending activity that began in the second quarter.
- Other non-interest income included $1.8 million of net insurance proceeds related to the Stateline branch fire.
- Civista sold $6.6 million in securities, mainly lower-yielding securities, and reinvested the proceeds into higher-yielding assets.
Concerns
- Provision for credit losses, including provision for unfunded commitments, was $1.3 million for the third quarter of 2026, compared to $0.2 million for the third quarter of 2025.
- Net loss on sale of debt securities was $1.6 million for the third quarter of 2026.
- Accumulated other comprehensive loss was $(63,948) at September 30, 2026, compared with $(40,315) at December 31, 2025.
- The effective income tax rate was 19.1% for the third quarter of 2026, compared to 18.5% for the same period in 2025.
- Quarter-to-date average FTE employees were 555 at September 30, 2026, compared with an average of 524 for the same period in 2025.
What to watch
- The pace of residential real estate and real estate construction loan growth.
- Further reductions in brokered deposits and short-term FHLB advances.
- Net interest margin after the third-quarter cost of funds increase to 197 basis points from 194 basis points in the second quarter of 2026.
- Credit provisioning, net charge-offs and non-performing assets.
- The effect of reinvesting proceeds from sold lower-yielding securities into higher-yielding assets.
Balance sheet and cash flow
- Cash and due from financial institutions was $ 67,710 at September 30, 2026, compared with $ 77,320 at December 31, 2025.
- Investment securities were $ 640,217 at September 30, 2026, compared with $ 684,600 at December 31, 2025.
- Short-term Federal Home Loan Bank advances were $ 122,500 at September 30, 2026, compared with $ 175,000 at December 31, 2025.
- Subordinated debentures were $ 104,359 at September 30, 2026, compared with $ 104,234 at December 31, 2025.
- Brokered deposits totaled $325.1 million at September 30, 2026 and declined $25.0 million during the third quarter and $77.0 million since year-end 2025.
- Total shareholders' equity was $552.7 million at September 30, 2026, an increase of $9.3 million from December 31, 2025.
- No operating cash flow or free cash flow was reported.
Analysis
Civista reported third-quarter net income of $16.0 million, or $0.77 per diluted common share, compared with $12.8 million and $0.68 per diluted common share in the third quarter of 2025. Net income also increased from $14.3 million in the second quarter of 2026. Pre-Provision Net Revenue was $21.1 million, compared with $15.9 million a year earlier and $18.9 million in the preceding quarter, reflecting improved underlying earnings before provisions and taxes.
Management, verbatim
I am pleased with Civista's strong performance in the third quarter and proud of the continued execution by our team. We delivered net income of $16.0 million, expanded our net interest margin to 3.93%, and improved our efficiency ratio to 55.3%, while also generating solid loan growth. These results reflect the strength of our franchise, disciplined balance sheet management, and the dedication of our employees to serving our customers and communities.
Chuck Parcher, President and Chief Executive Officer of Civista Bancshares, Inc.
Our focus remains on growing responsibly while maintaining a strong and well-managed balance sheet. Total loans increased $38.0 million during the quarter, while brokered deposits declined another $25.0 million. Credit quality also remained well managed, with non-performing assets declining to $27.6 million. We are encouraged by these trends and remain focused on balancing growth with prudent funding and credit risk management.
Chuck Parcher, President and Chief Executive Officer of Civista Bancshares, Inc.
Not in the filing
stated, not guessed- Forward financial guidance
- Previous-period outlook for comparison
- Total revenue as a separately reported line item
- Gross margin
- Operating income as a separately reported line item
- Operating cash flow
- Free cash flow
- Third-quarter 2026 share repurchase dollar amount
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.