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SANDUSKY, Ohio - Civista Bancshares, Inc. (NASDAQ:CIVB), the financial holding company of Civista Bank, has announced an increase in its quarterly dividend. The Board of Directors approved a payment of 17 cents per common share, which is a 1 cent rise from the previous quarter's dividend. According to InvestingPro data, this marks the company's 14th consecutive year of dividend increases. Shareholders on record as of February 4, 2025, will be eligible for the dividend, scheduled for payment on February 18, 2025.
The increased dividend translates to a total payout of approximately $2.7 million. With Civista's stock closing at $21.30 on January 21, 2025, the new dividend rate yields an annualized return of 3.19%. The stock has shown strong momentum with a 25.84% return over the past year, and InvestingPro analysis indicates the stock is currently fairly valued, trading at a P/E ratio of 10.66.
Established in 1884, Civista Bank offers a range of banking services, including commercial lending, mortgage, and wealth management. It operates 42 branches across Ohio, Southeastern Indiana, and Northern Kentucky. Civista Bancshares trades on the NASDAQ Capital Market and provides additional commercial equipment leasing services through Civista Leasing & Finance, a division of Civista Bank.
The announcement of the dividend increase is part of Civista's financial performance strategy and business prospects. However, as with any forward-looking statements, they are subject to the safe harbor protections under the Private Securities Litigation Reform Act of 1995.
This dividend declaration is based on a press release statement from Civista Bancshares, Inc.
In other recent news, Civista Bancshares reported a mixed bag of Q3 results. The company's net income rose by 18% to $8.4 million, or $0.53 per diluted share, compared to the previous quarter, despite a $2 million decline year-over-year. The bank is currently undergoing a transition phase, adjusting to changes in overdraft processing and moving away from its income tax refund processing relationship.
Civista Bancshares also reported a deceleration in loan growth and is actively managing its deposit and loan portfolio in anticipation of potential Federal Reserve rate cuts. The bank managed to open 1,000 new deposit accounts through Ohio's Homebuyer Plus program, contributing to a $246 million increase in overall deposits. However, non-interest income decreased by 8.1% from the prior quarter.
Analysts from various firms have noted these developments. Despite a decline in net income year-over-year and slowed loan growth, Civista Bancshares has shown successful deposit growth through the Ohio Homebuyer Plus program and wealth management client conversions. The bank's capital levels remain strong, with a Tier 1 leverage ratio at 8.45%.
Looking ahead, Civista Bancshares expects low single-digit loan growth in the coming quarters and aims to rebuild its tangible common equity ratio to between 7% and 7.5%. These are among the recent developments for Civista Bancshares.
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