Civista Bancshares Expands Net Interest Margin to 3.89%
Net interest income rose 10.9% year-over-year to $38.6 million as funding costs declined.
Net interest income for Civista Bancshares (CIVB), a community banking organization, increased 10.9% year-over-year to $38.6 million in the second quarter of 2026. The result represented a 2.0% sequential increase from the first quarter.
Net interest margin expanded 25 bps year-over-year to 3.89%, up from 3.64% in the second quarter of 2025. The expansion followed a decline in the cost of funds, which fell 37 bps year-over-year to 194 bps. The cost of deposits stood at 183 bps, a 13 bps decrease from the same period last year, though it rose 2 bps sequentially from 181 bps in the first quarter.
Loan growth remained modest but positive, with total loans increasing $25.2 million, or 0.8%, sequentially. This growth was concentrated in residential real estate, which added $14.5 million, and real estate construction, which added $11.2 million.
Total deposits decreased 1.2% sequentially to $3.5 billion. The decline was attributed to seasonal fluctuations in public funds and a $25.0 million reduction in brokered deposits.
Non-interest income rose 36.7% year-over-year to $9.0 million. The increase was driven by a $0.9 million rise in lease revenue and residual income, alongside $0.7 million in higher net gains from the sale of loans. The efficiency ratio improved to 58.2% from 64.5% a year earlier, as revenue growth outpaced a 4.3% increase in non-interest expenses.
Credit quality metrics showed a divergence between provisions and actual losses. The provision for credit losses increased to $1.8 million, up $0.8 million from the second quarter of 2025. However, net charge-offs decreased to $0.1 million from $1.0 million in the prior-year period.
Tangible book value per share rose 6.0% from December 31, 2025, to $20.43 at June 30, 2026.