Updated 3/6/25
Civista Bancshares (CIVB) is one of those under-the-radar regional banks that dividend investors might want to take a closer look at. Based in Ohio, Civista operates as a community bank, offering a full range of financial services to individuals and businesses. It’s not a big national name, but it has a solid track record of steady performance, making it an interesting choice for those seeking reliable dividend income.
While regional banks tend to be more sensitive to interest rate movements and economic conditions, Civista has shown resilience over the years. The stock currently trades at an attractive valuation, and its dividend yield is above its five-year average, signaling a potential opportunity for income investors. Let’s dive into what makes Civista Bancshares a noteworthy dividend stock.
Key Dividend Metrics
💰 Dividend Yield: 3.45%
📈 5-Year Average Dividend Yield: 2.95%
💵 Annual Dividend: $0.68 per share
📊 Payout Ratio: 31.84%
📅 Recent Dividend Payment: February 18, 2025
❌ Ex-Dividend Date: February 4, 2025
🔁 Dividend Growth Rate: Modest but steady
Dividend Overview
For investors who prioritize income, Civista offers a respectable dividend yield of 3.45%, which is higher than its five-year average of 2.95%. When a stock’s current yield is above its historical average, it can sometimes indicate an undervaluation or a recent increase in the dividend.
A key factor in dividend sustainability is the payout ratio, which in Civista’s case is 31.84%. That’s a comfortable range, meaning the company is keeping a large portion of its earnings while still rewarding shareholders. Typically, a payout ratio under 50% suggests a company has enough flexibility to maintain dividends even during economic slowdowns.
Civista has maintained a steady dividend track record, though it isn’t aggressively increasing its payouts like some larger financial institutions. However, its history of consistency makes it appealing for investors who value reliability over high-growth dividends.
Dividend Growth and Safety
The safety of Civista’s dividend comes down to its overall profitability and financial health. The bank operates with a profit margin of 21.25% and an ROE (return on equity) of 8.33%, both of which are decent figures for a regional bank. These numbers indicate that the company is efficiently generating profits and can comfortably sustain its dividend payments.
Civista has a history of modest but consistent dividend growth, keeping pace with its earnings. While it doesn’t boast rapid dividend hikes, management has prioritized stability, which is often a key consideration for income-focused investors.
The biggest risk to dividend safety here is the company’s exposure to interest rate fluctuations and regional economic trends. As with all banks, profitability depends heavily on lending margins, and if interest rates fall or loan demand slows, earnings could take a hit. However, the relatively low payout ratio provides a cushion, meaning even if earnings dip, the dividend is unlikely to be in immediate danger.
Chart Analysis
Price Action and Trend
Civista Bancshares (CIVB) has experienced a significant run-up in price, followed by a pullback in recent months. The stock made a strong move higher in the second half of last year, breaking past previous resistance levels and trending upward. However, after peaking above 22.50, the stock has started to lose momentum, pulling back towards the 19.70 level.
Currently, the price is trading below the 50-day moving average (orange line), which had been acting as support but now appears to be turning into resistance. The 200-day moving average (blue line) continues to trend upward, suggesting the longer-term trend remains intact, but the recent weakness could indicate a short-term correction.
Moving Averages and Momentum
The breakdown below the 50-day moving average suggests a shift in sentiment, as the stock had been holding above this level during its previous uptrend. The 200-day moving average, sitting well below the current price, suggests that the longer-term trend remains positive. However, the fact that the 50-day moving average is starting to curl downward raises questions about whether the stock is entering a more extended consolidation phase or a deeper correction.
The recent price action shows lower highs and lower lows, which is a sign of a short-term downtrend. If the stock fails to reclaim the 50-day moving average in the coming sessions, further downside toward the 200-day moving average could be possible.
Volume and Market Participation
Volume spikes were noticeable during the strong uptrend, with significant buying activity pushing the stock higher. However, more recent trading sessions have shown declining volume, which suggests waning bullish momentum. Red volume bars have increased in recent weeks, signaling that sellers are beginning to take control.
Notably, during the sharp drop from recent highs, volume spiked, indicating strong selling pressure. This suggests that investors may be taking profits after the strong run-up. Unless buying volume increases, it could be difficult for the stock to regain strength in the near term.
Relative Strength Index (RSI)
The RSI is currently at 34.81, which is approaching oversold territory but not quite there yet. This level suggests that the stock has been under selling pressure, but it is not yet at extreme levels where a strong bounce would typically be expected.
Previously, the RSI had been well into overbought conditions when the stock was trading above 22.50, indicating that some of the recent decline could be a natural cooldown after an extended rally. If the RSI drops below 30, it may indicate an oversold condition that could lead to a potential short-term bounce.
Support and Resistance Levels
The stock is currently hovering around the 19.70 level, which appears to be an area of previous price congestion. If this level fails to hold, the next key support zone is likely near the 18.50 region, where the 200-day moving average is currently positioned.
On the upside, the first level of resistance is at the 50-day moving average. If the stock can reclaim this level, it may attempt to retest the previous highs near 22.50. However, if selling pressure continues, the path of least resistance may be downward in the short term.
Analyst Ratings
📈 Upgrades
🔹 Keefe, Bruyette & Woods – Raised the price target for Civista from $22.00 to $25.00, assigning an “outperform” rating. The upgrade was based on strong financial results and a positive outlook on loan growth and operational efficiency. Analysts highlighted the bank’s ability to maintain profitability despite industry headwinds.
🔹 Hovde Group – Moved Civista from “market perform” to “outperform” with a price target of $22.00. The shift was driven by improved cost management and a stronger-than-expected balance sheet. Analysts noted that Civista’s fundamentals were holding up well, with loan demand showing resilience in key markets.
📉 Downgrades
🔻 Stephens – Adjusted its rating from “overweight” to “equal weight” while increasing the price target from $18.00 to $24.00. The downgrade reflected concerns about potential margin compression in the regional banking space, particularly if interest rates decline further. Analysts acknowledged Civista’s strengths but saw limited near-term catalysts for further price appreciation.
🔻 Hovde Group – Previously lowered its rating from “outperform” to “market perform”, maintaining a $25.00 price target. The decision was based on caution surrounding economic uncertainty and the bank’s exposure to specific loan segments that could face increased pressure in a slowing economy.
🎯 Consensus Price Target
The average twelve-month price target among analysts currently stands at $22.50, indicating a moderate upside from recent trading levels. While some firms see potential for continued growth, others remain cautious about sector-wide risks and external market pressures.
Earnings Report Summary
Civista Bancshares wrapped up the fourth quarter of 2024 on a strong note, delivering earnings that came in higher than expected. The company reported earnings per share of $0.63, beating analyst estimates of $0.53. That’s a noticeable jump from the previous quarter’s $0.53, showing that Civista’s financial performance is heading in the right direction.
Revenue for the quarter reached $40.37 million, reflecting a 3.8% increase compared to the same time last year. The growth was fueled by strategic moves in loan and deposit pricing, as well as successful deposit initiatives that helped strengthen the bank’s balance sheet.
One of the standout numbers in the report was the net interest margin, which came in at 3.4%. That’s slightly better than the 3.2% analysts had been expecting, suggesting that Civista is managing its assets and liabilities efficiently in a challenging interest rate environment.
Dividend investors also got some good news. The company announced an increase in its quarterly dividend, raising it to $0.17 per share from $0.16. While it’s not a huge jump, it’s a sign that management remains committed to returning value to shareholders and has confidence in the bank’s financial position.
Overall, Civista’s fourth-quarter results show steady improvement, driven by smart financial management and strategic initiatives that are helping it navigate the current banking landscape. The company continues to perform well, balancing growth with a disciplined approach to lending and deposits.
Financial Health and Stability
Civista appears financially sound, though there are some areas to keep an eye on. The bank carries $450.88 million in total debt, which is a sizable figure for its market cap, but it also holds $64.61 million in cash, which helps offset that burden.
Another promising sign is its book value per share of $24.69, meaning the stock is currently trading below its intrinsic value with a price-to-book ratio of 0.80. A number below 1 can often suggest that the stock is undervalued, but it can also mean the market has concerns about future earnings growth.
Revenue is trending in the right direction, with an 8.6% year-over-year increase, but net income growth has slowed to 2.5% YOY. That’s not necessarily a red flag, but it does indicate the bank isn’t experiencing explosive earnings growth. However, for a dividend stock, steady performance is often preferable to volatility.
Valuation and Stock Performance
At a current price of $19.67 per share, Civista appears undervalued based on several key metrics. The stock is trading at a P/E ratio of 9.81, which is low relative to both the broader market and many regional banking peers. Its forward P/E of 9.53 suggests the market doesn’t expect significant earnings growth in the near term.
Civista has had a fairly wide trading range over the past year, hitting a 52-week high of $23.70 and a 52-week low of $13.60. Right now, it’s sitting below its 50-day moving average of $20.89 but still above its 200-day moving average of $18.55, which signals some recent weakness.
One of the more attractive features of Civista is its low beta of 0.78, meaning the stock is less volatile than the overall market. That’s a plus for dividend investors who prioritize stability and aren’t looking for big price swings.
Risks and Considerations
Even though Civista has strong dividend fundamentals, there are some risks investors should keep in mind:
- Interest Rate Sensitivity – Like all banks, Civista relies on net interest margins for profitability. If rates decline significantly, loan profitability could shrink.
- Loan Portfolio Risk – A downturn in the regional economy could lead to higher loan defaults, putting pressure on earnings.
- Competitive Landscape – Large banks and digital-first financial institutions are increasing competition, potentially squeezing Civista’s market share.
- Stock Volatility – While the stock has a relatively low beta, it has seen notable price swings over the past year, meaning short-term fluctuations are still a possibility.
Despite these risks, Civista’s low payout ratio and solid financial position suggest it has a strong foundation to continue paying dividends even during economic turbulence.
Final Thoughts
Civista Bancshares offers an interesting mix of steady dividends, attractive valuation, and reasonable growth potential. For dividend-focused investors, the 3.45% yield, low payout ratio, and discounted stock price make it worth considering in the regional banking space.
While it’s not the kind of stock that will deliver high-flying returns, Civista has built a track record of consistency, making it a solid choice for income-focused investors who prioritize stability over rapid growth.
Looking ahead, the key factors to watch will be interest rate trends and the broader economic environment, as these will directly impact the bank’s earnings and dividend sustainability. But for those looking for a stable, income-generating stock, Civista certainly stands out as a name worth exploring.
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