In a recent transaction, Darci L. Congrove, a director at Civista Bancshares, Inc. (NASDAQ:CIVB), purchased 750 shares of the company's common stock. The shares were acquired at a price of $20.8127 per share, totaling approximately $15,609. Following this transaction, Congrove's total direct ownership in Civista Bancshares stands at 2,625 shares. This acquisition reflects a continued investment in the company, which operates in the state commercial banks sector.
In other recent news, Civista Bancshares has reported mixed results for its third quarter of 2024. The company saw an 18% increase in net income to $8.4 million compared to the previous quarter, although this represents a $2 million decline year-over-year. Amid a period of transition, the bank is adjusting to changes in income tax refund and overdraft processing. Loan growth has slowed, and the bank is strategically managing its deposit and loan portfolio in light of potential Federal Reserve rate cuts.
Civista Bancshares has also reported a decrease in the loan-to-deposit ratio from 102% to 95%. However, the opening of 1,000 new deposit accounts through Ohio's Homebuyer Plus program contributed to a $246 million increase in overall deposits. The bank's net interest income rose by 5.3% to $29.2 million, and the net interest margin expanded to 3.16%.
The bank has announced a $200 million shelf offering, a branch closure to save costs, and declared a quarterly dividend of $0.16 per share. Civista Bancshares' capital levels remain robust, with a Tier 1 leverage ratio of 8.45% and an improved tangible common equity ratio. Looking ahead, management anticipates net interest margin expansion and a cautious approach to CRE lending.
InvestingPro Insights
The recent insider purchase by Director Darci L. Congrove aligns with several positive indicators for Civista Bancshares, Inc. (NASDAQ:CIVB). According to InvestingPro data, the company's stock has shown remarkable performance, with a 66.29% price total return over the past six months and a 58.84% return over the last year. This strong momentum is further evidenced by the stock trading at 93.14% of its 52-week high, suggesting investor confidence in the company's prospects.
InvestingPro Tips highlight that Civista Bancshares has raised its dividend for 14 consecutive years, demonstrating a commitment to shareholder returns. This consistent dividend growth, coupled with a current dividend yield of 2.84%, may be particularly appealing to income-focused investors like Congrove.
The company's valuation metrics also present an interesting picture. With a P/E ratio of 10.47 and a price-to-book ratio of 0.9, CIVB appears to be trading at relatively attractive levels compared to historical standards. This could explain why five analysts have revised their earnings upwards for the upcoming period, as noted in another InvestingPro Tip.
It's worth mentioning that InvestingPro offers 12 additional tips for Civista Bancshares, providing a more comprehensive analysis for investors looking to delve deeper into the company's prospects.
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