Loans

12 Months Ended

Dec. 31, 2024

NOTE 4 - LOANS

Loans at year-end were as follows:


	2024			2023
Commercial & Agriculture	$	328,488		$	304,793
Commercial Real Estate - Owner Occupied		374,367			377,321
Commercial Real Estate - Non-Owner Occupied		1,225,991			1,161,894
Residential Real Estate		763,869			659,841
Real Estate Construction		305,992			260,409
Farm Real Estate		23,035			24,771
Lease financing receivable		46,900			54,642
Consumer and Other		12,588			18,056
Total Loans		3,081,230			2,861,727
Allowance for credit losses		(39,669	)		(37,160	)
Net loans	$	3,041,561		$	2,824,567

Included in Commercial & Agriculture loans as of December 31, 2024 and 2023 was $177 and $326, respectively, of Paycheck Protection Program (“PPP”) loans.

Included in total loans above are deferred loan fees of $2,686 and $2,743 at December 31, 2024 and 2023, respectively.

Lease financing receivables consist of sales-type and direct financing leases for equipment, with terms typically ranging from two to six years. On direct financing leases, the Company obtains third-party residual value guarantees to reduce its residual asset risk. The net investment in direct financing and sales-type leases was comprised of the following:


	At December 31,
	2024			2023
Minimum lease payments receivable	$	53,284		$	63,564
Unguaranteed residual assets		1,286			634
Unamortized direct costs		—			—
Unearned income		(7,670	)		(9,556	)
Total net investment in direct financing and sales-type leases	$	46,900		$	54,642

Undiscounted future minimum lease payments receivable for direct financing and sales-type leases at December 31, 2024 were as follows:


	At December 31,
	2024
2025	$	16,736
2026		14,360
2027		10,712
2028		7,307
2029		2,899
Thereafter		1,270
Total undiscounted future minimum lease payments receivable for direct financing and sales-type leases	$	53,284

Loans to principal officers, directors, and their affiliates at year-end 2024 and 2023 were as follows:


	2024			2023
Balance - Beginning of year	$	10,550		$	21,107
New loans and advances		3,719			1,477
Repayments		(2,732	)		(2,205	)
Effect of changes to related parties		10,253			(9,829	)
Balance - End of year	$	21,790		$	10,550

The Company had credit lines to principal officers, directors, and their affiliates with an availability of $7,520 and $7,231 as of December 31, 2024 and 2023, respectively.

Paycheck Protection Program

In response to the novel COVID-19 pandemic, the Coronavirus Aid, Relief, and Economic Security Act of 2020, as amended (the "CARES Act"), was signed into law on March 27, 2020, to provide national emergency economic relief measures. The CARES Act amended the loan program of the Small Business Administration (the "SBA"), in which Civista participates, to create a guaranteed, unsecured loan program, the Paycheck Protection Program (the "PPP"), to fund operational costs of eligible businesses, organizations and self-employed persons during the COVID-19 pandemic. During 2020, Civista processed over 2,300 PPP loans totaling $268.3 million.

The Consolidated Appropriations Act 2021, was signed into law on December 27, 2020 to provide an additional funding of $284.5 billion under the PPP and the establishment of PPP Second Draw Loans under the Economic Aid to Hard-Hit Small Businesses, Nonprofit, and Venues Act (the “Relief Act”). This additional funding was made available from original PPP lenders on January 19, 2021, and the deadline (as extended) for submitting applications for PPP Second Draw Loans was May 31, 2021.

Funds provided under the Relief Act were earmarked both for first time PPP borrowers (subject to original PPP eligibility and limits) as well as ‘Second Draw’ Loans for borrowers that already received an original PPP loan.

During 2021, Civista received SBA approval on, and funded, 1,340 PPP loans totaling $131,109 under the Relief Act.

At December 31, 2024 Civista had PPP loans outstanding of $177.