Procore signs multi-year strategic collaboration agreement with AWS
Investing.com - Stephens has reduced its price target on Civista Bancshares (NASDAQ:CIVB) to $24.00 from $27.00 while maintaining an Equal Weight rating on the stock. Currently trading at a P/E ratio of 8.06x and offering a 3.37% dividend yield, InvestingPro analysis suggests the stock is fairly valued at current levels.
The adjustment follows Civista’s second-quarter 2025 operating earnings of $0.67 per share, which hit the high end of the company’s previously announced range of $0.62-$0.67. Despite this performance, the bank’s pre-tax, pre-provision net revenue missed consensus expectations by approximately 2%, primarily due to softer leasing revenue affecting fee income.
Civista reported loan growth of approximately 6% on an annualized basis during the quarter, while a decrease in deposits was offset by Federal Home Loan Bank advances. Credit quality showed improvement compared to the previous quarter, with the allowance for credit losses now standing at 1.28%.
The research firm highlighted Civista’s acquisition of Farmers Savings for $70 million and a common equity raise as positive developments for the bank’s balance sheet composition. These moves are expected to reduce Civista’s commercial real estate concentration to less than 300% on a pro forma basis.
Stephens noted that while these strategic moves strengthen the balance sheet, the common equity raise is likely to pressure earnings over the next several quarters, contributing to the lowered price target.
In other recent news, Civista Bancshares Inc. reported its Q2 2025 earnings, which presented a mix of outcomes for investors. The company’s earnings per share matched expectations at $0.71, but revenue fell short, recording $41.4 million compared to the anticipated $42.88 million. Despite the revenue miss, Civista Bancshares demonstrated strong net income growth, which seemed to bolster market sentiment. Additionally, the company announced updates to its corporate bylaws to align with changes in Ohio’s General Corporation Law. These amendments include provisions allowing the board to set alternate dates for shareholder meetings and determine director compensation. These developments reflect Civista Bancshares’ strategic initiatives to modernize its governance framework. The company’s actions indicate a focus on maintaining compliance with state laws while enhancing operational flexibility.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.