Civista Bancshares (CIVB) Plunges 13.66% on Public Offering

Civista Bancshares (CIVB) experienced a significant decline, with its share price dropping 13.66% to its lowest level since April 2025, marking an intraday decrease of 14.18%.

The strategy of buying CIVB shares after they reached a recent low and holding for one week resulted in a 15.56% return over the past five years. This outperformed the benchmark, which had a return of -100.00%, resulting in an excess return of 115.56%. The strategy's CAGR was 5.95%, with a maximum drawdown of 0.00% and a Sharpe ratio of 0.17, indicating low risk and steady returns.

The recent 12% drop in Civista Bancshares' stock price is primarily linked to the announcement of a public offering. Civista Bancshares priced an underwritten public offering of 3.29 million common shares at $21.25 per share, aiming to raise $70 million. This move is part of a strategic plan that includes the acquisition of The Farmers Savings Bank for $70.4 million. The acquisition is expected to expand Civista's presence in Northeast Ohio, bringing additional branches and deposits. This dual strategy of acquisition and public offering reflects Civista's approach to capital management, addressing market expansion, deposit growth, and balance sheet optimization. The public offering is likely intended to offset dilution from the acquisition and maintain capital flexibility for future growth initiatives.