Civista Bancshares, Inc. (NASDAQ:CIVB) Q2 2020 Earnings Conference Call - Final Transcript
Jul 24, 2020 • 01:00 pm ET
Good day and welcome to the Civista Bancshares Second Quarter 2020 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Dennis Shaffer, President and CEO. Please go ahead, sir.
Dennis G. Shaffer
Good afternoon. This is Dennis Shaffer, President and CEO of Civista Bancshares, and I would like to thank you for joining us for our second quarter 2020 earnings call. I'm joined today by Rich Dutton, Senior Vice President of the Company and Chief Operating Officer of the bank; and Chuck Parcher, Senior Vice President of the Company and Chief Lending Officer of the bank; and other members of our executive team.
Before we begin, I would like to remind you that this conference call contains forward-looking statements with respect the future performance and financial condition of Civista Bancshares, Inc. that involves risks and uncertainties. Various factors could cause actual results to be materially different from any future results expressed or implied by such forward-looking statements. These factors are discussed in the Company's SEC filings, which are available on the Company's website. The Company disclaims any obligation to update any forward-looking statements made during the call.
Additionally, management may refer to non-GAAP measures, which are intended to supplement but not substitute the most directly comparable GAAP measures. The press release, available on our website, contains the financial and other quantitative information to be discussed today, as well as the reconciliation of the GAAP to non-GAAP measures.
We will record this call and make it available on Civista Bancshares' website at civb.com. Again, welcome to Civista Bancshares' second quarter 2020 earnings call. I would like to begin by discussing our results, which were issued this morning. At the conclusion of my remarks, we will take any questions that you may have.
This morning, we reported earnings for the second quarter 2020 of $6.5 million or $0.41 per diluted share and $14.3 million or $0.88 per diluted share for the six months ended June 30, 2020. This represents a decrease in net income from 2019 of $2 million for the quarter and $3.7 million for the six-month period.
The COVID-19 pandemic has had several effects on our balance sheet and income statement during 2020. Our balance sheet has grown as a result of the Paycheck Protection Program, or PPP. The makeup of our income statement shifted as well. The largest change to our income statement is an increase in provision for loan losses due to the economic uncertainty created by COVID-19, stay-at-home orders and increased unemployment. Without the increase in provision, our net income would have exceeded 2019 levels.
Our strong capital position and continued ability to generate core earnings allowed our Board of Directors to approve our quarterly dividend during the second quarter of $0.11 per share, which represents a dividend payout ratio of 26.8%. In these uncertain economic times, it is difficult to predict future performance. But our strong capital and liquidity should allow Civista to maintain this dividend level, unless we experience a further deterioration in