Civista Bancshares's Q2 net income up 56% to $11 mln

Overview

• Civista Bancshares Q2 net income rises 56% yr/yr to $11.0 mln

• Diluted EPS for Q2 increases 58% yr/yr to $0.71

• Net interest income grows 25.5% yr/yr, supported by higher net interest margin

Outlook

• Company anticipates growth in housing and construction financing demand

• Civista sees expansion in Northeast Ohio through Farmers Savings Bank partnership

• Company positions for future growth with recent $80.5 mln capital raise

Result Drivers

• NET INTEREST INCOME - Increased by 25.5% due to higher net interest margin and reduced interest expenses

• LOAN GROWTH - Residential and commercial real estate loan balances increased, supporting revenue growth

• NON-RECURRING ITEMS - Positively impacted net income by $0.9 mln pre-tax

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Civista Bancshares Inc is $26.00, about 17.7% above its July 23 closing price of $21.40

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nPn1sZ146a