CIVB - Civista Bancshares offloads shares debt in tactical balance sheet transactions

Civista Bancshares (CIVB) entered into an agreement to sell 7,361 shares of Visa Class B common stock at a pre-tax gain of ~$1.8M.The carrying value of the Visa Class B shares on Civista's balance sheet was $100 as the Bank had no other historical cost basis in the shares.Also, Civista completed a $50M prepayment of long-term Federal Home Loan Bank advances with a rate of 2.05% and a remaining maturity of ~8 years.This transaction was accounted for as an early debt extinguishment resulting in a loss, reported within noninterest expense, of $3.7M in Q2.The debt prepayment, funded with excess cash, will save ~$1M in annual interest expense."While the immediate net effect of the advance prepayment and the sale of the Visa B shares is additional expense of $1.9M, we expect the prepayment to improve our net interest margin by 12 basis points on an annualized basis," CEO & president Dennis Shaffer commented.The

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Civista Bancshares offloads shares, debt in tactical balance sheet transactions