Civista Bancshares Q4 2024: Conflicting Insights on Deposit Costs, Loan Growth, and Fee Income Expectations

These are the key contradictions discussed in Civista Bancshares' latest 2024Q4 earnings call, specifically including: Deposit Cost Management, Loan Growth Expectations, Fee Income Expectations, and Product Launches:



Earnings and Revenue Growth:
- Civista Bancshares, Inc. reported net income of $9.9 million, or $0.63 per diluted share for Q4 2024, representing an 18% increase over the linked quarter and a $237,000 increase over the fourth quarter of 2023.
- The growth was driven by improved net interest income and disciplined loan and deposit pricing strategies.

Net Interest Margin (NIM) Expansion:
- Civista's NIM expanded by 20 basis points during Q4 2024, reaching 3.36% for the quarter, and was 3.21% for the year.
- The expansion was primarily due to a 19 basis point decline in overall funding costs, attributed to the replacement of brokered CDs with lower-cost alternatives.

Noninterest Income and Fee Recovery:
- The bank's noninterest income for 2024 increased by $585,000 compared to 2023.
- This was achieved through increases in service charges, gains on mortgage sales, lease and loan originations, and residual fee income, offsetting losses from changes in tax refund processing and fee structures.

Loan Growth and Deposit Management:
- Total loans and leases grew by $219.5 million for the year, with a growth rate of 7.7%, and by $37.3 million in Q4, representing an annualized growth rate of 4.8%.
- This growth was supported by strong demand in various market sectors, while core deposit funding grew organically by $36 million during the quarter, reducing reliance on brokered funding.