Earned net income of $10.2 million, or $0.64 per diluted share, for the fourth quarter of 2020, compared to $7.7 million, or $0.47 per diluted share, for the fourth quarter of 2019.
Earned net income for the year of $32.2 million, or $2.00 per diluted share, compared to $33.2 million, or $2.01 per diluted share, in 2019.
Earned a record pre-tax, pre-provision net income of $47.2 million for the year, compared to $40.6 million in 2019.
COVID–19 loan deferrals in effect were 4.0% of total loans, net of Paycheck Protection Program ("PPP") loans, at period end, compared to 24.4% on June 30, 2020. The bank has not experienced any specific loan losses attributed to COVID–19 closures in 2020.
Civista Bancshares increased our dividend in January 2021 to $0.12 per quarter which is equivalent to a dividend yield of 2.65% based on the February 2, 2021 market close of $18.11. The quarterly dividend represents an increase of 9.1%, and based on fourth quarter 2020 earnings per share, translates to a dividend payout ratio of 18.8%.
Net interest income increased $2.3 million, or 10.9%, for the fourth quarter of 2020 compared to the same period of 2019, due to an increase in interest income as well as a decrease in interest expense. Accretion of PPP fees was $2.3 million during the quarter.
Net interest margin decreased 49 basis points to 3.69% for the fourth quarter of 2020, compared to 4.18% for the same period a year ago.
Interest income increased $1.2 million, or 4.9%, for the fourth quarter of 2020. Average yields decreased 79 basis points which resulted in a $3.6 million decrease in interest income. Average earning assets increased $533.8 million, which resulted in a $4.8 million increase in interest income.
PPP loans accounted for $242.1 million of the increase in average earning assets at a yield of 3.88%. Removing the impact of PPP loans, the yield on earning assets would have been 9 basis points higher.
Included in interest income is $2.3 million of accretion of Paycheck Protection Program ("PPP") fees as well as accretion income associated with purchased loan portfolios of $688 thousand.
Interest expense decreased $1.1 million, or 33.6%, for the fourth quarter of 2020, compared to the same period last year. The average rate paid on interest-bearing liabilities decreased 43 basis points, while average interest-bearing liabilities increased $323.9 million. ■