The Bank Slate


Civista in Ohio steps away from income tax refund business

Civista Bancshares in Sandusky, Ohio, reported lower profit that reflected a narrower net interest margin and a decision to step away from its income tax refund business.

The $3.9 billion-asset company said in a press release that its first-quarter net income fell by 50.4% from a year earlier, to $6.4 million.

Net interest income decreased by 13% from a year earlier, to $4.2 million. The net interest margin compressed by 77 basis points, to 3.22%.

Civista also lost about $71 million in noninterest-bearing deposits after ending a relationship with a third party that handled processing for its tax refund business. That business brought in $1.9 million in processing fees a year earlier.

Civista also said it lost service charge income after deciding last year to change how it processes overdrafts.

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