Civista Bancshares is preparing for a system conversion in early February 2026 and announced a quarterly dividend of $0.17 per share. Non-interest income increased by $3 million, primarily driven by leasing operations. Non-interest expense increased by $845,000 due to acquisition expenses. Marketing expenses decreased, resulting in an improved efficiency ratio of 61.5%.

The quarter saw a decline in total loans and leases by $55.1 million due to payoffs, with significant declines in commercial and ag loans and non-owner occupied CRE. The loan portfolio continues to focus on adjustable-rate loans and short-term leases. The CRE to risk-based capital ratio is 288%, with plans to establish an internal CRE limit of approximately 325%.

Total deposits grew by $33.4 million, reducing dependence on brokered funds by $23 million. Core deposit funding increased by $56.4 million, lowering the overall cost of funding to 2.27%. The Company launched a new digital deposit account opening platform and plans to roll out a deposit product redesign initiative in the fourth quarter.

The system conversion is expected to result in cost savings following the merger with Farmers Savings Bank. Loan competition on pricing remains competitive, driven by lower rates from the Fed. Loan yields may be impacted by a mix shift and repricing of fixed assets. The Company anticipates closing the acquisition of Farmers Savings Bank shortly after their shareholder meeting on November 4.

Read more at Yahoo Finance: Civista Bancshares Earnings Call Transcript