Civista Bancshares (CIVB) is an Ohio-based state commercial bank with $4.30B in total assets as of March 31, 2026. Under a liquidation lens, recovery to equity is structurally negative. Reported book equity is $552.2M (12.8% of assets), but the liquidation framework strips intangibles and applies recovery haircuts to funded assets while leaving the $3.75B liability stack at face value. Goodwill of $130.4M and core deposit intangibles of $12.3M recover at zero — a combined $142.7M that directly erodes equity in a wind-down scenario. The AFS securities portfolio carries a gross unrealized loss of $50.5M against a fair value of $679.7M; book equity already reflects $43.2M of accumulated other comprehensive loss from this position, but liquidation requires realizing those marks. The loan book ($3.19B net after $40.5M ACL) is the dominant asset and would face material haircuts in a forced disposal — the filing shows nonaccrual loans of $29.4M and $1.0M in mortgages in process of foreclosure, consistent with an institution that is not in credit distress but would suffer discounts in a portfolio sale. The primary liability drivers are $3.50B in deposits (face-value liabilities in liquidation) and $104.3M in subordinated debt. FHLB advances have decreased materially in Q1 2026 (net cash used in financing was $44.2M, driven primarily by reduction of short-term FHLB advances and dividend payments). Shareholders' equity increased $8.8M QoQ, driven by $15.0M net income partially offset by $3.7M in dividends and a $2.9M increase in accumulated other comprehensive loss. The FSB (Farmers Savings Bank) merger is in process, with $427K of acquisition-related expenses recognized in Q1 2026; the Agreement and Plan of Merger was dated July 10, 2025. The operating liquidation value reported by MFFAIS of $81.3M reflects the deeply negative adjusted recovery position once goodwill, intangibles, and AFS marks are removed from the equity buffer. The net portfolio value (NPV) sensitivity table shows positive NPV responses to rate increases (base NPV $816.5M), consistent with an asset-sensitive position, but this is not directly relevant to the liquidation recovery analysis. Capital ratios are well above minimums (Total Risk-Based 18.7%, Tier 1 15.1%, CET1 14.2%, Leverage 11.6%) and provide no liquidation value benefit but confirm the institution is not under regulatory capital pressure. Filing discusses the captive insurance subsidiary CIVB Risk Management in MD&A (Q1 2026 income of $487K from reserve release) but does not separately XBRL-tag captive insurance assets or liabilities.
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