Civista Bancshares (CIVB) 8-K Civista Bancshares, Inc. Announces Second Quarter 2016 Earnings

Exhibit 99.1

Civista Bancshares, Inc. Announces Second Quarter 2016 Earnings

Sandusky, Ohio, July 22, 2016 /PRNewswire/ – Civista Bancshares, Inc. (NASDAQ:CIVB) (“Civista”) reported net income attributable to common shareholders of $4.8 million, or $0.47 per diluted share, for the second quarter of 2016, compared with $2.7 million, or $0.29 per diluted share, for the prior year period. For the six-month period ended June 30, 2016, Civista reported net income available to common shareholders of $9.1 million or $0.91 per diluted share, compared to $5.5 million, or $0.58 per diluted share, in the same period of 2015. During the second quarter of 2016, Civista received a payoff on a non-performing loan which resulted in a negative provision of $1.3 million and additional interest income of $920 thousand, or approximately $1.5 million after tax or approximately $0.13 per diluted share for both the quarter and six months ended June 30, 2016. Without this transaction, the diluted earnings per share for the second quarter of 2016 would have been $0.34 and $0.77 for the six months ended June 30, 2016.

“During the second quarter we were successful at growing loans 2.7%. That growth coupled with the payoff of the aforementioned non-performing loan have provided continued good results for Civista. Additionally, the recovery we received on the payoff of the non-performing loan shows the benefit of our continued efforts to work with our customers. “ said James O. Miller, Chairman, President and CEO of Civista.

Results of Operations:

Net interest income for the second quarter of 2016 increased $1.0 million, or 8.6% compared to the same period of 2015 and for the six months ended June 30 increased $2.3 million, or 10.3%, when compared to the same period of 2015. The increase in net interest income for the quarter was primarily due to the recovery of interest income from the payoff of a non-performing loan. For the three and six-month periods ended June 30, an increase in average loans outstanding also contributed to the increase in interest income compared to 2015. Tax equivalent net interest margin was 4.13% for the second quarter, compared to 3.96% for the same period a year ago and 3.81% for the six months ended June 30, 2016 and 2015. Year-to-date net interest margin was reduced in both periods due to the impact of additional interest-earning cash on deposit related to the tax refund processing program. The impact of the interest recovery on the non-performing loan payoff was 28 basis points and 13 basis points, for the three and six-month periods, respectively. Year-to-date average cash related to the tax refund processing program 2016 and 2015 was $139 million and $73 million, respectively. The reduction to net interest margin due to the additional cash from the tax refund processing program was 38 basis points in 2016 and 22 basis points in 2015.

Summary Average Balance Sheet

(Tax-equivalent basis / dollars in thousands)

	Six months ended June 30,
	2016							2015
	Average balance		Interest		Yield / rate			Average balance		Interest		Yield / rate
Assets
Loans	$	1,008,203	$	23,487		4.69	%	$	959,474	$	21,516		4.53	%
Securities		213,528		2,937		3.54	%		211,548		2,893		3.50	%
Interest-bearing deposits		149,046		367		0.50	%		79,794		94		0.24	%
Total interest earning assets	$	1,370,777	$	26,791		4.05	%	$	1,250,816	$	24,503		4.08	%
Liabilities
Int-bearing demand and savings	$	559,901	$	227		0.08	%	$	540,336	$	207		0.08	%
Time deposits		205,949		747		0.73	%		228,846		868		0.76	%
FHLB advances and other borrowings		80,086		642		1.61	%		78,351		597		1.54	%
Total interest-bearing liabilities	$	845,936	$	1,616		0.38	%	$	847,533	$	1,672		0.40	%
Noninterest-bearing deposits	$	516,738						$	379,786
Net interest income and interest rate spread			$	25,175		3.67	%			$	22,831		3.68	%
Net interest margin						3.81	%						3.81	%

Summary Average Balance Sheet

(Tax-equivalent basis / dollars in thousands)

	Three months ended June 30,
	2016							2015
	Average balance		Interest		Yield / rate			Average balance		Interest		Yield / rate
Assets
Loans	$	1,015,687	$	12,170		4.82	%	$	991,487	$	11,270		4.56	%
Securities		215,059		1,482		3.56	%		211,553		1,436		3.45	%
Interest-bearing deposits		70,355		87		0.50	%		43,691		34		0.31	%
Total interest earning assets	$	1,301,101	$	13,739		4.38	%	$	1,246,731	$	12,740		4.23	%
Liabilities
Int-bearing demand and savings	$	563,561	$	114		0.08	%	$	555,144	$	109		0.08	%
Time deposits		202,347		371		0.74	%		233,047		424		0.73	%
FHLB advances and other borrowings		68,445		314		1.84	%		72,687		291		1.60	%
Total interest-bearing liabilities	$	834,353	$	799		0.39	%	$	860,878	$	824		0.38	%
Noninterest-bearing deposits	$	425,390						$	345,241
Net interest income and interest rate spread			$	12,940		3.99	%			$	11,916		3.85	%
Net interest margin						4.13	%						3.96	%

The provision for loan losses for the second quarter and six months ended June 30, 2016 is negative $1.3 million due to ongoing improvement in the loan portfolio and recognition of a significant recovery due to the resolution of a nonperforming loan relationship that paid off, generating a $1.3 million recovery. The provision for the three and six-month periods ended June 30, 2015 was $400 thousand and $800 thousand, respectively.

During the quarter, noninterest income totaled $4.1 million, an increase of $423 thousand, or 11.6%, compared to the prior year’s second quarter. Year-to-date noninterest income totaled $9.3 million, an increase of $1.3 million, or 15.9%, compared to the prior year’s first six months.

Noninterest income

(dollars in thousands)	Three months ended June 30,				Six months ended June 30,
	2016		2015		2016		2015
Service charges	$	1,391	$	1,170	$	2,520	$	2,225
Net gain on sale of securities		6		—		1		—
Net gain on sale of loans		406		415		800		619
ATM fees		535		515		1,043		964
Trust fees		666		734		1,300		1,501
Tax refund processing fees		550		400		2,750		2,000
Other		521		418		921		744
Total noninterest income	$	4,075	$	3,652	$	9,335	$	8,053

Service charge income increased $221 thousand and $295 thousand in the three and six-month periods, respectively, primarily due to a large new customer relationship. Gain on sale of loans decreased $8 thousand for the three-month period ended June 30. The second quarter of 2015 included a $78 thousand gain on the sale of an SBA loan. Gain on sale of loans increased $181 thousand for the six-month period due to additional volume of loans sold as well as an increase in the premium on loans sold. Trust fees decreased $68 thousand and $201 thousand for the three and six-month periods, respectively, due to a decrease in trust assets. Tax refund processing fees increased $150 thousand and $750 thousand in the three and six-month periods, respectively, due to a higher contract fee to compensate for an increase in the volume of refunds processed.

During the quarter, noninterest expense totaled $11.1 million, an increase of $117 thousand, or 1.1%, compared to the prior year’s second quarter. Year-to-date noninterest expense increased $420 thousand, or 2.0%, when compared to the six months of 2015.

Noninterest expense

(dollars in thousands)	Three months ended June 30,				Six months ended June 30,
	2016		2015		2016		2015
Salaries, Wages and benefits	$	6,354	$	5,809	$	12,678	$	11,708
Net occupancy and equipment		1,038		980		1,965		1,967
Contracted data processing		395		545		750		993
Taxes and assessments		419		442		889		918
Professional services		517		663		1,019		1,119
Amortization of intangible assets		172		192		355		334
Marketing		275		308		561		544
Other		1,880		1,994		3,740		3,954
Total noninterest expense	$	11,050	$	10,933	$	21,957	$	21,537

Salaries, wages and benefits expense increased $545 thousand for the second quarter and $970 thousand for the six-month period ending June 30, 2016. The increases in salaries, wages and benefits expense for both periods were primarily due to the addition of TCNB employees, normal merit increases, increased insurance expense and increased incentive expense. Contracted data processing and professional fees decreased for the three and six-month periods ended June 30, 2016. These decreases were primarily due to expenses related to the acquisition of TCNB in 2015. Overall acquisition related expenses included in the six months ended June 30, 2015 approximate $390 thousand.

The efficiency ratio improved to 61.4% during 2016 compared to 67.2% for 2015. The improvement in the efficiency ratio is due to the increase in net interest income, including the $920 thousand recovered interest income, as well as the increase in noninterest income, partially offset by a modest increase in noninterest expense.

Mr. Miller continued, “While we have had success increasing revenues, the success we have had in minimizing costs is also important in our increase in net income. We were successful in limiting the increase of costs to 2% for the comparable six-month periods.”

Balance Sheet

Total assets increased $44.9 million, or 3.4%, from December 31, 2015 to June 30, 2016, due primarily to loan growth.

Total loans increased $27.4 million or 2.7% from December 31, 2015 to June 30, 2016. The increase in total loans is primarily due to increased Commercial Real Estate – Non-owner Occupied and Residential Real Estate.

End of period loan balances

(dollars in thousands)

	June 30, 2016		December 31, 2015
Commercial and Agriculture	$	126,540	$	124,402
Commercial Real Estate – Owner Occupied		167,894		167,897
Commercial Real Estate – Non-owner Occupied		369,876		348,439
Residential Real Estate		245,941		236,338
Real Estate Construction		56,274		58,898
Farm Real Estate		43,289		46,993
Consumer and Other		19,108		18,560
Total Loans	$	1,028,922	$	1,001,527

Total deposits increased $63.0 million, or 6.0%, from December 31, 2015 to June 30, 2016, due primarily to the additional cash balances related to the tax refund processing program. Total tax refund processing related deposits were $68.9 million on June 30, 2016, compared to $22.1 million at year-end.

End of period deposit balances

(dollars in thousands)

	June 30, 2016		December 31, 2015
Noninterest-bearing demand	$	353,386	$	300,615
Interest-bearing demand		190,434		176,303
Savings and money market		373,453		364,067
Time deposits		197,734		211,048
Total Deposits	$	1,115,007	$	1,052,033

Total shareholder’s equity increased $11.0 million, or 8.8%, from December 31, 2015 to June 30, 2016 primarily due to increased retained earnings of $8.3 million and a $2.3 million increase in other comprehensive income related to unrealized gains in the investment portfolio.

Asset Quality

Nonperforming assets at June 30, 2016 were $13.8 million, a $528 thousand increase from December 31, 2015. This increase is in restructured loans where we elected to work with customers to rewrite certain loans to address the economic headwinds. The Company recorded net recoveries of $1.4 million for the second quarter of 2016 compared to net charge-offs of $400 thousand for the same period of 2015. Year-to-date, net recoveries were $1.5 million for 2016 compared to net charge-offs of $361 thousand for the same period of 2015.

Non-performing Assets

(dollars in thousands)	June 30, 2016		December 31, 2015
Non-accrual loans	$	9,343	$	9,890
Restructured loans		4,378		3,294
Total non-performing loans		13,721		13,184
Other Real Estate Owned		107		116
Total non-performing assets	$	13,828	$	13,300

Civista Bancshares, Inc. is a $1.4 billion financial holding company headquartered in Sandusky, Ohio. The Company’s banking subsidiary, Civista Bank, operates 28 locations in North Central, West Central and Southwestern Ohio.

Civista Bancshares, Inc. may be accessed atwww.civb.com. The Company’s common shares are traded on the NASDAQ Capital Market under the symbol “CIVB”. The Company’s depositary shares, each representing a 1/40^th ownership interest in a Series B Preferred Share, are traded on the NASDAQ Capital Market under the symbol “CIVBP”.

This press release may contain forward-looking statements regarding the financial performance, business prospects, growth and operating strategies of Civista. For these statements, Civista claims the protections of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this press release should be considered in conjunction with the other information available about Civista, including the information in the filings we make with the Securities and Exchange Commission. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include risk factors relating to the banking industry and the other factors detailed from time to time in Civista’ reports filed with the Securities and Exchange Commission, including those described in “Item 1A Risk Factors” of Part I of Civista’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015. Undue reliance should not be placed on the forward-looking statements, which speak

only as of the date hereof. Civista does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward-looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.

For additional information, contact:

James O. Miller

Chairman, President and CEO

Civista Bancshares, Inc.

888-645-4121

Civista Bancshares, Inc.

Financial Highlights

(dollars in thousands, except share amounts)

Consolidated Condensed Statement of Income

	Three Months Ended June 30, (unaudited)						Six Months Ended June 30, (unaudited)
	2016			2015			2016			2015
Interest income		13,739			12,740			26,791			24,503
Interest expense		799			824			1,616			1,672
Net interest income		12,940			11,916			25,175			22,831
Provision for loan losses		(1,300	)		400			(1,300	)		800
Net interest income after provision		14,240			11,516			26,475			22,031
Noninterest income		4,075			3,652			9,335			8,053
Noninterest expense		11,050			10,933			21,957			21,537
Income before taxes		7,265			4,235			13,853			8,547
Income tax expense		2,084			1,113			3,947			2,255
Net income		5,181			3,122			9,906			6,292
Preferred stock dividends		391			391			782			795
Net income available to common shareholders		4,790			2,731			9,124			5,497
Dividends per common share	$	0.05		$	0.05		$	0.10		$	0.10
Earnings per common share,
basic	$	0.61		$	0.35		$	1.16		$	0.70
diluted	$	0.47		$	0.29		$	0.91		$	0.58
Average shares outstanding,
basic		7,877,119			7,842,159			7,861,444			7,800,808
diluted		10,951,521			10,921,824			10,937,768			10,914,788
Selected financial ratios:
Return on average assets		1.48	%		0.94	%		1.31	%		0.93	%
Return on average equity		15.75	%		10.50	%		15.37	%		10.74	%
Dividend payout ratio		7.60	%		12.56	%		7.94	%		12.40	%
Net interest margin (tax equivalent)		4.13	%		3.96	%		3.81	%		3.81	%

Selected Balance Sheet Items

	June 30, 2016			December 31, 2015
	(unaudited)			(unaudited)
Cash and due from financial institutions	$	41,772		$	35,561
Investment securities		200,643			196,249
Loans held for sale		5,167			2,698
Loans		1,028,922			1,001,527
Less allowance for loan losses		14,547			14,361
Net loans		1,014,375			987,166
Other securities		13,734			13,452
Fixed assets		16,711			16,944
Goodwill and other intangibles		29,186			29,504
Bank owned life insurance		24,255			20,104
Other assets		14,068			13,363
Total assets	$	1,359,911		$	1,315,041
Total deposits	$	1,115,007		$	1,052,033
Federal Home Loan Bank advances		47,300			71,200
Securities sold under agreements to repurchase		17,725			25,040
Subordinated debentures		29,427			29,427
Accrued expenses and other liabilities		14,249			12,168
Total shareholders’ equity		136,203			125,173
Total liabilities and shareholders’ equity	$	1,359,911		$	1,315,041
Shares outstanding at period end		7,907,360			7,843,578
Book value per share	$	14.43		$	13.12
Tangible book value per share		10.74			9.36
Equity to asset ratio		10.02	%		9.52	%
Selected asset quality ratios:
Allowance for loan losses to total loans		1.41	%		1.43	%
Non-performing assets to total assets		1.02	%		1.01	%
Allowance for loan losses to non-performing loans		106.02	%		108.93	%
Non-performing asset analysis
Nonaccrual loans	$	9,343		$	9,890
Troubled debt restructurings		4,378			3,294
Other real estate owned		107			116
Total	$	13,828		$	13,300

Average Balance Analysis

(Unaudited – Dollars in thousands except share data)

	Six Months Ended June 30,
	2016								2015
	Average balance			Interest		Yield / rate *			Average balance			Interest		Yield / rate *
Assets:
Interest-earning assets:
Loans	$	1,008,203		$	23,487		4.69	%	$	959,474		$	21,516		4.53	%
Taxable securities		138,517			1,622		2.39	%		141,420			1,629		2.37	%
Non-taxable securities		75,011			1,315		5.67	%		70,128			1,264		5.78	%
Interest-bearing deposits in other banks		149,046			367		0.50	%		79,794			94		0.24	%
Total interest-earning assets	$	1,370,777			26,791		4.05	%	$	1,250,816			24,503		4.08	%
Noninterest-earning assets:
Cash and due from financial institutions		76,208								46,515
Premises and equipment, net		16,801								15,537
Accrued interest receivable		4,327								4,225
Intangible assets		29,366								27,513
Other assets		9,876								9,877
Bank owned life insurance		22,506								19,737
Less allowance for loan losses		(14,562	)							(14,520	)
Total Assets	$	1,515,299							$	1,359,700
Liabilities and Shareholders Equity:
Interest-bearing liabilities:
Demand and savings	$	559,901		$	227		0.08	%	$	540,336		$	207		0.08	%
Time		205,949			747		0.73	%		228,846			868		0.76	%
FHLB		28,537			201		1.42	%		30,179			215		1.44	%
Subordinated debentures		29,427			430		2.94	%		29,427			373		2.56	%
Repurchase Agreements		22,122			11		0.10	%		18,745			9		0.10	%
Total interest-bearing liabilities	$	845,936			1,616		0.38	%	$	847,533			1,672		0.40	%
Noninterest-bearing deposits		516,738								379,786
Other liabilities		23,004								14,258
Shareholders’ Equity		129,621								118,123
Total Liabilities and Shareholders’ Equity	$	1,515,299							$	1,359,700
Net interest income and interest rate spread				$	25,175		3.67	%				$	22,831		3.68	%
Net interest margin							3.81	%							3.81	%

* – All yields and costs are presented on an annualized basis

Average Balance Analysis

(Unaudited – Dollars in thousands except share data)

		Three Months Ended June 30,
		2016								2015
		Average balance			Interest		Yield / rate *			Average balance			Interest		Yield / rate *
Assets:
Interest-earning assets:
Loans		$	1,015,687		$	12,170		4.82	%	$	991,487		$	11,270		4.56	%
Taxable securities			139,238			821		2.41	%		140,943			796		2.31	%
Non-taxable securities			75,821			661		5.66	%		70,610			640		5.74	%
Interest-bearing deposits in other banks			70,355			87		0.50	%		43,691			34		0.31	%
Total interest-earning assets		$	1,301,101			13,739		4.38	%	$	1,246,731			12,740		4.23	%
Noninterest-earning assets:
Cash and due from financial institutions			37,863								26,222
Premises and equipment, net			16,731								16,173
Accrued interest receivable			4,636								4,561
Intangible assets			29,286								29,164
Other assets			9,844								10,885
Bank owned life insurance			23,450								19,795
Less allowance for loan losses			(14,621	)							(14,593	)
Total Assets		$	1,408,290							$	1,338,938
Liabilities and Shareholders Equity:
Interest-bearing liabilities:
Demand and savings	��	$	563,561		$	114		0.08	%	$	555,144		$	109		0.08	%
Time			202,347			371		0.74	%		233,047			424		0.73	%
FHLB			18,636			91		1.96	%		25,958			94		1.45	%
Subordinated debentures			29,427			218		2.98	%		29,427			193		2.63	%
Repurchase Agreements			20,382			5		0.10	%		17,302			4		0.09	%
Total interest-bearing liabilities		$	834,353			799		0.39	%	$	860,878			824		0.38	%
Noninterest-bearing deposits			425,390								345,241
Other liabilities			16,280								13,607
Shareholders’ Equity			132,267								119,212
Total Liabilities and Shareholders’ Equity		$	1,408,290							$	1,338,938
Net interest income and interest rate spread					$	12,940		3.99	%				$	11,916		3.85	%
Net interest margin								4.13	%							3.96	%

* – All yields and costs are presented on an annualized basis

Supplemental Financial Information

(Unaudited – Dollars in thousands except share data)

	June 30,			March 31,			December 31,			September 30,			June 30,
End of Period Balances	2016			2016			2015			2015			2015
Assets
Cash and due from banks	$	41,772		$	214,407		$	35,561		$	33,619		$	35,092
Securities available for sale		200,643			201,786			196,249			198,655			197,429
Loans held for sale		5,167			2,193			2,698			1,223			4,034
Loans		1,028,922			1,005,803			1,001,527			1,000,275			1,002,917
Allowance for loan losses		(14,547	)		(14,433	)		(14,361	)		(14,760	)		(14,707	)
Net Loans		1,014,375			991,370			987,166			985,515			988,210
Other securities		13,734			13,550			13,452			13,324			13,261
Fixed assets		16,711			16,773			16,944			16,200			16,308
Goodwill and other intangibles		29,186			29,337			29,504			29,683			29,608
Bank owned life insurance		24,255			23,218			20,104			19,987			19,870
Other assets		14,068			14,262			13,363			15,125			13,460
Total Assets	$	1,359,911		$	1,506,896		$	1,315,041		$	1,313,331		$	1,317,272
Liabilities
Total Deposits	$	1,115,007		$	1,279,780		$	1,052,033		$	1,055,959		$	1,075,806
Federal Home Loan Bank advances		47,300			17,500			71,200			72,200			55,300
Securities sold under agreement to repurchase		17,725			24,272			25,040			20,887			17,460
Subordinated debentures		29,427			29,427			29,427			29,427			29,427
Accrued expenses and other liabilities		14,249			25,377			12,168			11,521			19,257
Total liabilities		1,223,708			1,376,356			1,189,868			1,189,994			1,197,250
Shareholders’ equity
Preferred shares, Series B		22,124			22,273			22,273			22,273			22,273
Common Stock		115,750			115,442			115,330			115,267			115,248
Accumulated earnings		13,640			9,242			5,300			2,884			414
Treasury stock		(17,235	)		(17,235	)		(17,235	)		(17,235	)		(17,235	)
Accumulated other comprehensive income (loss)		1,924			818			(495	)		148			(678	)
Total shareholders’ equity		136,203			130,540			125,173			123,337			120,022
Total liabilities and shareholders’ equity	$	1,359,911		$	1,506,896		$	1,315,041		$	1,313,331		$	1,317,272
Quarterly Average Balances
Assets:
Earning assets	$	1,301,101		$	1,440,453		$	1,218,797		$	1,230,249		$	1,246,731
Securities		215,059			211,995			212,463			210,209			211,553
Loans		1,015,687			1,000,720			996,861			1,009,372			991,487
Liabilities and shareholders’ equity
Total deposits	$	1,191,298		$	1,373,875		$	1,059,271		$	1,073,930		$	1,133,432
Interest-bearing deposits		765,908			765,790			756,422			773,625			788,191
Interest-bearing liabilities		68,445			91,724			111,481			111,797			72,687
Total shareholders’ equity		132,267			126,976			124,025			121,057			119,212

Supplemental Financial Information

(Unaudited – Dollars in thousands except share data)

	Three Months Ended
Income statement	June 30, 2016			March 31, 2016			December 31, 2015			September 30, 2015			June 30, 2015
Total interest income	$	13,739		$	13,053		$	12,976		$	13,223		$	12,740
Total interest expense		799			818			815			821			824
Net interest income		12,940			12,235			12,161			12,402			11,916
Provision for loan losses		(1,300	)		—			—			400			400
Noninterest income		4,075			5,260			3,146			3,076			3,652
Noninterest expense		11,050			10,907			10,741			10,666			10,933
Income before taxes		7,265			6,588			4,566			4,412			4,235
Income tax expense		2,084			1,863			1,367			1,159			1,113
Net income		5,181			4,725			3,199			3,253			3,122
Preferred stock dividends		391			391			391			391			391
Net income available to common shareholders	$	4,790		$	4,334		$	2,808		$	2,862		$	2,731
Common stock dividend paid	$	392		$	392		$	392		$	392		$	392
Per share data
Basic net income per common share	$	0.61		$	0.55		$	0.36		$	0.36		$	0.35
Diluted net income per common share		0.47			0.43			0.29			0.30			0.29
Dividends per common share		0.05			0.05			0.05			0.05			0.05
Average common shares outstanding – basic		7,877,119			7,845,768			7,843,578			7,843,578			7,842,159
Average common shares outstanding – diluted		10,951,521			10,924,013			10,921,823			10,921,823			10,921,824
Asset quality
Allowance for loan losses, beginning of period	$	14,433		$	14,361		$	14,760		$	14,707		$	14,315
Charge-offs		(230	)		(126	)		(525	)		(634	)		(305	)
Recoveries		1,644			198			126			287			297
Provision		(1,300	)		—			—			400			400
Allowance for loan losses, end of period	$	14,547		$	14,433		$	14,361		$	14,760		$	14,707
Ratios
Allowance to total loans		1.41	%		1.43	%		1.43	%		1.48	%		1.47	%
Allowance to nonperforming assets		105.20	%		93.12	%		107.98	%		102.90	%		86.33	%
Allowance to nonperforming loans		106.02	%		93.46	%		108.93	%		106.57	%		88.80	%
Nonperforming assets
Nonperforming loans	$	13,721		$	15,443		$	13,184		$	13,851		$	16,562
Other real estate owned		107			56			116			494			474
Total nonperforming assets	$	13,828		$	15,499		$	13,300		$	14,345		$	17,036
Capital and liquidity
Tier 1 leverage ratio		9.85	%		8.24	%		9.96	%		9.68	%		9.38	%
Tier 1 risk-based capital ratio		12.76	%		12.52	%		12.70	%		12.47	%		12.20	%
Total risk-based capital ratio		14.01	%		13.77	%		13.96	%		13.72	%		13.45	%
Tangible common equity ratio		6.38	%		5.34	%		5.71	%		5.56	%		5.29	%