Civista's Net Interest Margin Reaches 3.93%

The Tip Desk · November 8, 2026 · 3 min read

Third-quarter net income was $16.0 million, or $0.77 a share, as the Sandusky bank lifted the margin 35 bps from a year earlier.

Civista Bancshares (CIVB), a $4.3 billion Ohio-based financial holding company, reported net income of $16.0 million, or $0.77 a diluted share, for the quarter ended September 30, 2026, up 25.5% from $12.8 million a year earlier and 11.9% from the second quarter.

The Sandusky, Ohio, bank said the periods include the Farmers Savings Bank merger that closed November 7, 2025.

Net interest margin expanded 35 bps year over year to 3.93% from 3.58%, after a 16 bps sequential expansion to 3.85% in the first quarter and a 4 bps sequential lift from 3.89% in the second quarter. Cost of funds was 197 bps.

Net interest income increased $4.9 million, or 14.1%, from the year-ago quarter. Interest income rose $2.6 million on higher average earning assets; interest expense fell $2.3 million on lower short-term FHLB advances and deposit pricing. Average loans were $3.274 billion at a 6.23% yield versus $3.128 billion at 6.18% a year earlier. Average interest-earning assets were $3.994 billion at a 5.73% yield. Average short-term FHLB borrowings were $127.5 million at 4.11%.

Cost of deposits was 182 bps.

Total loans increased $38.0 million, or 1.2%, from June 30, after a $25.2 million, or 0.8%, increase in the second quarter. Residential real estate rose $24.9 million and real estate construction $15.4 million.

Brokered deposits declined another $25.0 million in the third quarter to $325.1 million, matching the linked-quarter decline in the second quarter, and $77.0 million since year-end 2025. Period-end FHLB short-term advances were $122.5 million. Total deposits were $3.5 billion, up $19.4 million from June 30; noninterest-bearing demand deposits increased $30.3 million, including $19.9 million in business commercial and $14.8 million in public fund deposits.

Pre-provision net revenue was $21.1 million, compared with $15.9 million in the third quarter of 2025 and $18.9 million in the second quarter of 2026. Return on assets was 1.48%. The efficiency ratio improved to 55.3% from 61.4% a year earlier.

Non-interest income was $9.7 million, up slightly from $9.6 million a year earlier. The quarter included a $1.6 million net loss on sale of debt securities as Civista sold $6.6 million of mainly lower-yielding securities and reinvested the proceeds into higher-yielding assets, which the company said is expected to enhance future net interest income. Other income included $1.8 million of net insurance proceeds related to the Stateline branch fire.

Non-interest expense was $28.0 million, down $0.3 million, or 1.2%, from the third quarter of 2025, when $0.7 million of FSB acquisition expenses were recorded. The company attributed the efficiency-ratio improvement primarily to the 14.1% increase in net interest income and a 1.2% decrease in non-interest expenses.

Net charge-offs totaled $0.1 million versus $0.6 million a year earlier. The provision for credit losses, including unfunded commitments, was $1.3 million versus $0.2 million. The allowance for credit losses was $42.4 million, or 1.29% of loans. Non-performing assets declined to $27.6 million, down $3.7 million, or 11.7%, from December 31, 2025; NPA-to-assets was 0.64%. Allowance to non-performing loans rose to 153.3% from 134.2% at year-end 2025.

Civista declared a $0.18 quarterly cash dividend, consistent with the second quarter of 2026. Chuck Parcher began as president and chief executive officer.