CITIZENS FINANCIAL SERVICES, INC. REPORTS UNAUDITED FIRST QUARTER 2024 FINANCIAL RESULTS

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April 26, 2024 10:42 AM EDT

MANSFIELD, Penn., April 25, 2024 /PRNewswire/ -- Citizens Financial Services, Inc (Nasdaq: CZFS), parent company of First Citizens Community Bank (the "Bank"), released today its unaudited consolidated financial results for the three months ended March 31, 2024.

Highlights

  • The financial results of the Company continue to benefit from the acquisition of HV Bancorp, Inc. ("HVB") that closed in the second quarter of 2023.
  • During the first quarter of 2024, the Company completed the sale of certain assets acquired as part of the HVB acquisition, which included loans and accrued interest, and software, as well as transferring certain contracts, processes and employees of a division internally known as Braavo. The proceeds from the sale totaled approximately $7.2 million and generated a pre-tax gain of approximately $1.1 million. Legal fees associated with the sale totaled approximately $201,000.
  • Net income was $7.0 million for the three months ended March 31, 2024, which is 2.3% more than the net income for 2023's comparable period. The increase was driven by the gain on the sale of Braavo, which resulted in a pre-tax gain of approximately $900,000, net of legal fees. The effective tax rate for the three months ended March 31, 2024 was 17.4% compared to 19.0% in the comparable period in 2023, with the decrease being due to an increase in earnings on bank owned life insurance due to the passing of a former executive, which is not subject to income tax, and certain merger and acquisition expenses from 2023 not being tax deductible.
  • Net interest income before the provision for credit losses was $21.0 million for the three months ended March 31, 2024, an increase of $2,878,000, or 15.9%, over the same period a year ago and was primarily due to the HVB acquisition.
  • Return on average equity for the three months (annualized) ended March 31, 2024 was 9.10% compared to 11.49% for the three months (annualized) ended March 31, 2023.
  • Return on average tangible equity for the three months (annualized) ended March 31, 2024 was 12.80% compared to 13.30% for the three months (annualized) ended March 31, 2023 (non-GAAP). (1)
  • Return on average assets for the three months (annualized) ended March 31, 2024 was 0.93% compared to 1.16% for the three months (annualized) ended March 31, 2023.
  • Non-performing assets increased $4,833,000 since March 31, 2023 and total $15,713,000 as of March 31, 2024, which is $2.5 million higher than the balance at December 31, 2023. The increase from March 31, 2023 and December 2023 is due to loans acquired as part of the HVB acquisition. As a percent of loans, non-performing assets totaled 0.70%, 0.59% and 0.63% as of March 31, 2024, December 31, 2023 and March 31, 2023.

First Quarter of 2024 Compared to the First Quarter of 2023

  • For the three months ended March 31, 2024, net income totaled $7,024,000 which compares to net income of $6,867,000 for the comparable period of 2023, an increase of $157,000 or 2.3%. Basic earnings per share of $1.49 for the three months ended March 31, 2024 compares to $1.71 for the 2023 comparable period. Annualized return on equity for the three months ended March 31, 2024 and 2023 was 9.10% and 11.49%, while annualized return on assets was 0.93% and 1.16%, respectively.
  • Net interest income before the provision for credit losses for the three months ended March 31, 2024 totaled $20,958,000 compared to $18,080,000 for the three months ended March 31, 2023, resulting in an increase of $2,878,000, or 15.9%. Average interest earning assets increased $545.6 million for the three months ended March 31, 2024 compared to the same period last year, primarily due to the HVB acquisition. Average loans increased $563.1 million, while average investment securities decreased $30.5 million. The tax effected net interest margin for the three months ended March 31, 2024 was 3.05% compared to 3.30% for the same period last year. The yield on interest earning assets increased 92 basis points to 5.48%, while the cost of interest bearing liabilities increased 1.34% to 2.99% due to the rise in market interest rates and competitive pressure.
  • Due to the increase in non-performing loans and a change in estimated prepayment speeds on performing loans, a provision for credit losses of $785,000 was recorded in the first quarter of 2024. Due to limited loan origination activity in the first quarter of 2023, no provision was recorded for the first quarter of 2023.
  • Total non-interest income was $4,971,000 for the three months ended March 31, 2024, $2,797,000 more than the comparable period last year. The primary drivers were the gain on the sale of assets associated with Braavo and activity due to the HVB acquisition. As a result of the acquisition, service charges, gains on loans sold, earnings on bank owned life insurance and other income increased. Earnings on bank owned life insurance also increased due to the passing of a former employee in the first quarter of 2024. During the first quarter of 2024, the Company experienced a gain on its equity investment portfolio compared to a loss in the first quarter of 2023, both of which were due to market conditions at the time.
  • Total non-interest expenses for the three months ended March 31, 2024 totaled $16,643,000 compared to $11,778,000 for the same period last year, which is an increase of $4,865,000, or 41.3%. Salary and benefit costs increased $2,613,000 due to an additional 80.9 FTEs as a result of the acquisition and merit increases for 2024 as well as an increase in health insurance costs of $423,000. The increases in occupancy, furniture and fixtures, software expenses and amortization expenses was due to the acquisition and additional branches as part of it. FDIC insurance expense increased $225,000 due to the Company's increased size and the Bank's lower leverage capital ratio. Professional fees increased due to various legal matters, of which $201,000 was related to the sale of certain Braavo assets. Other expenses increased primarily due to the acquisition, with increases experienced in subscriptions, marketing and advertising, postage, printing, data communication expenses and FHLB letter of credit fees. Independent of the acquisition, other expenses increased due to insurance reimbursement received in 2023 to cover amounts previously expensed. Merger and acquisitions costs for the merger with HVB totaled $244,000 in 2023 and include professional and consulting fees, printing and travel related expenses.
  • The provision for income taxes decreased $132,000 when comparing the three months ended March 31, 2024 to the same period in 2023. This decrease was attributable to death benefits received upon the passing of a former employees and certain expenses in 2023 not being tax deductible. The effective tax rate was 17.4% and 19.0% for the three months ended March 31, 2024 and 2023, respectively.

Balance Sheet and Other Information:

  • At March 31, 2024, total assets were $2.92 billion compared to $2.98 billion at December 31, 2023 and $2.34 billion at March 31, 2023. The loan to deposit ratio as of March 31, 2024 was 97.25% compared to 96.87% as of December 31, 2023 and 95.77% as of March 31, 2023.
  • Available for sale securities of $404.9 million at March 31, 2024 decreased $12.7 million from December 31, 2023 and decreased $38.6 million from March 31, 2023. The yield on the investment portfolio increased from 2.12% to 2.29% on a tax equivalent basis due to securities purchased during a higher rate environment and lower yielding securities maturing. Investment activity has been limited in the first quarter of 2024.
  • Net loans as of March 31, 2024 totaled $2.22 billion and decreased $9.6 million from December 31, 2023, due to a decrease in the amount of student loans outstanding and selling loans as part of the Braavo disposition. In comparison to March 31, 2023, loans have grown $509.8 million due to the HVB acquisition.
  • The allowance for credit losses - loans totaled $21,598,000 at March 31, 2024 which is an increase of $445,000 from December 31, 2023 and is due to change in expected prepayment speeds and specific reserves on non-performing loans. The provision for credit losses on loans was $1,112,000 for the first quarter of 2024. Loan recoveries and charge-offs were $7,000 and $674,000, respectively, for the three months ended March 31, 2024 with the majority of the charge-offs associated with loans acquired as part of the HVB acquisition. The allowance as a percent of total loans was 0.96% as of March 31, 2024 and 0.94% as of December 31, 2023.
  • Deposits decreased $18.7 million from December 31, 2023, to $2.30 billion at March 31, 2024. With the rise in interest rates, competitive pressure for deposits has increased. Additionally, we have numerous state and political organizations as customers who withdrew funds during the first quarter of 2024 to fund various projects and bond payments.
  • Borrowed funds totaled $283.6 million as of March 31, 2024, a $38.5 million decrease from December 31, 2023.
  • Stockholders' equity totaled $282.7 million at March 31, 2024, compared to $279.7 million at December 31, 2023, an increase of $3.0 million. Excluding accumulated other comprehensive loss (AOCI), stockholders equity increased $4.7 million and totals $309.3 million. The increase in stockholders equity, excluding AOCI, was attributable to net income for the three months ended March 31, 2024 totaling $7.0 million, offset by cash dividends for the first quarter totaling $2.3 million. As a result of changes in market interest rates impacting the fair value of investment securities and swaps, AOCI decreased $1.7 million from December 31, 2023.

Dividend Declared

On March 5, 2024, the Board of Directors declared a cash dividend of $0.49 per share, which was paid on March 29, 2024 to shareholders of record at the close of business on March 15, 2024. This quarterly cash dividend is an increase of 2.1% over the regular cash dividend of $0.48 per share declared one year ago, as adjusted for the 1% stock dividend declared in June 2023.    

Citizens Financial Services, Inc. has nearly 1,900 shareholders, the majority of whom reside in markets where its offices are located.

Note: This press release may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995.  These statements are not historical facts; rather, they are statements based on the Company's current expectations regarding its business strategies and their intended results and its future performance.  Forward-looking statements are preceded by terms such as "expects," "believes," "anticipates," "intends" and similar expressions.  Forward-looking statements are not guarantees of future performance.  Numerous risks and uncertainties could cause or contribute to the Company's actual results, performance and achievements to be materially different from those expressed or implied by the forward-looking statements. Factors that may cause or contribute to these differences include, without limitation, changes in general economic conditions, including changes in market interest rates and changes in monetary and fiscal policies of the federal government; legislative and regulatory changes; and other factors disclosed periodically in the Company's filings with the Securities and Exchange Commission.  Because of the risks and uncertainties inherent in forward-looking statements, readers are cautioned not to place undue reliance on them, whether included in this press release or made elsewhere periodically by the Company or on its behalf.  The Company assumes no obligation to update any forward-looking statements except as may be required by applicable law or regulation.

(1)

See reconciliation of GAAP and non-gaap measures at the end of the press release

 

CITIZENS FINANCIAL SERVICES, INC.




CONSOLIDATED FINANCIAL HIGHLIGHTS




(UNAUDITED)




(Dollars in thousands, except per share data)





As of or For The



Three Months Ended



March 31,



2024

2023


Income and Performance Ratios




Net Income

$               7,024

$           6,867


Return on average assets (annualized)

0.93 %

1.16 %


Return on average equity (annualized)

9.10 %

11.49 %


Return on average tangible equity (annualized) (a)

12.80 %

13.30 %


Net interest margin (tax equivalent)(a)

3.05 %

3.30 %


Earnings per share - basic (b)

$                 1.49

$             1.71


Earnings per share - diluted (b)

$                 1.49

$             1.71


Cash dividends paid per share (b)

$               0.490

$           0.480


Number of shares used in computation - basic (b)

4,701,853

4,005,370


Number of shares used in computation - diluted (b)

4,701,853

4,005,375










Asset quality




Allowance for credit losses - loans

$             21,598

$         15,250


Non-performing assets

$             15,713

$         10,880


Allowance for credit losses - loans/total loans

0.96 %

0.88 %


Non-performing assets to total loans

0.70 %

0.63 %


Annualized net charge-offs to total loans

0.12 %

0.00 %










Equity




Book value per share (b)

$               65.71

$           59.85


Tangible Book value per share (a) (b)

$               46.76

$           51.73


Market Value (Last reported trade of month)

$               49.20

$           83.55


Common shares outstanding

4,706,991

3,971,049










Other




Average Full Time Equivalent Employees

394.1

313.2


Loan to Deposit Ratio

97.25 %

95.77 %


Trust assets under management

$           173,716

$        156,999


Brokerage assets under management

$           362,408

$        294,925










Balance Sheet Highlights 

March 31,

December 31,

March 31,


2024

2023

2023





Assets

$        2,921,103

$     2,975,321

$        2,335,398

Investment securities

406,523

419,539

445,338

Loans (net of unearned income)

2,239,659

2,248,836

1,723,475

Allowance for credit losses - loans

21,598

21,153

15,250

Deposits

2,302,881

2,321,481

1,799,687

Stockholders' Equity

282,674

279,666

213,238









(a) See reconciliation of GAAP and Non-GAAP measures at the end of the press release

(b) Prior period amounts were adjusted to reflect stock dividends.

 

CITIZENS FINANCIAL SERVICES, INC.




CONSOLIDATED BALANCE SHEET




(UNAUDITED)









March 31,

December 31,

March 31,

(in thousands except share data)

2024

2023

2023

ASSETS:




Cash and due from banks:




  Noninterest-bearing

$             14,047

$           37,733

$              24,249

  Interest-bearing

15,572

15,085

1,924

Total cash and cash equivalents

29,619

52,818

26,173





Interest bearing time deposits with other banks

3,820

4,070

6,055





Equity securities

1,658

1,938

1,923





Available-for-sale securities

404,865

417,601

443,415





Loans held for sale

8,346

9,379

671





Loans (net of allowance for credit losses - loans: $21,598 at March 31, 2024; 




    $21,153 at December 31, 2023 and $15,250 at March 31, 2023)

2,218,061

2,227,683

1,708,225





Premises and equipment

21,083

21,384

17,588

Accrued interest receivable

10,596

11,043

7,176

Goodwill

85,758

85,758

31,376

Bank owned life insurance

49,418

49,897

39,573

Other intangibles

3,450

3,650

1,181

Fair value of derivative instruments - asset

14,857

13,687

14,197

Deferred tax asset

17,672

17,339

10,786

Other assets

51,900

59,074

27,059





TOTAL ASSETS

$        2,921,103

$      2,975,321

$          2,335,398





LIABILITIES:




Deposits:




  Noninterest-bearing

$           523,844

$         523,784

$            369,658

  Interest-bearing

1,779,037

1,797,697

1,430,029

Total deposits

2,302,881

2,321,481

1,799,687

Borrowed funds

283,565

322,036

288,059

Accrued interest payable

4,123

4,298

1,768

Fair value of derivative instruments - liability

8,698

7,922

8,234

Other liabilities

39,162

39,918

24,412

TOTAL LIABILITIES

2,638,429

2,695,655

2,122,160

STOCKHOLDERS' EQUITY:




Preferred Stock $1.00 par value; authorized




  3,000,000 shares; none issued in 2024 or 2023

-

-

-

Common stock




  $1.00 par value; authorized 25,000,000 shares at March 31, 2024, December 31, 2023 and      




  March 31, 2023: issued 5,160,754 at March 31, 2024 and December 31, 2023 and  




  4,427,687 at March 31, 2023

5,161

5,161

4,428

Additional paid-in capital

143,227

143,233

80,926

Retained earnings

177,693

172,975

171,629

Accumulated other comprehensive loss

(26,620)

(24,911)

(26,762)

Treasury stock, at cost:  453,763 at March 31, 2024 and 453,760 shares 




  at December 31, 2023 and 456,638 shares at March 31, 2023

(16,787)

(16,792)

(16,983)

TOTAL STOCKHOLDERS' EQUITY

282,674

279,666

213,238

TOTAL LIABILITIES AND




   STOCKHOLDERS' EQUITY

$        2,921,103

$      2,975,321

$          2,335,398

 

CITIZENS FINANCIAL SERVICES, INC.



CONSOLIDATED STATEMENT OF INCOME



(UNAUDITED)




Three Months Ended


March 31, 

(in thousands, except share and per share data)

2024

2023

INTEREST INCOME:



Interest and fees on loans

$       35,133

$        22,549

Interest-bearing deposits with banks

243

71

Investment securities:



    Taxable

1,624

1,556

    Nontaxable

532

617

    Dividends

401

314

TOTAL INTEREST INCOME

37,933

25,107

INTEREST EXPENSE:



Deposits

12,321

3,939

Borrowed funds

4,654

3,088

TOTAL INTEREST EXPENSE

16,975

7,027

NET INTEREST INCOME

20,958

18,080

Provision for credit losses

785

-

Provision for credit losses - acquisition day 1 non-PCD

-

-

NET INTEREST INCOME AFTER



    PROVISION FOR CREDIT LOSSES

20,173

18,080

NON-INTEREST INCOME:



Service charges

1,372

1,211

Trust

244

230

Brokerage and insurance

665

514

Gains on loans sold

417

45

Equity security gains (losses), net

55

(218)

Available for sale security losses, net

-

-

Earnings on bank owned life insurance

668

218

Gain on sale of Braavo division

1,102

-

Other

448

174

TOTAL NON-INTEREST INCOME

4,971

2,174

NON-INTEREST EXPENSES:



Salaries and employee benefits

10,290

7,677

Occupancy 

1,324

835

Furniture and equipment

236

151

Professional fees

703

381

FDIC insurance expense

525

300

Pennsylvania shares tax

310

298

Amortization of intangibles

148

31

Software expenses

514

351

ORE  (income) expenses 

(13)

26

Merger and acquisition expenses

-

244

Other

2,606

1,484

TOTAL NON-INTEREST EXPENSES

16,643

11,778

Income before provision for income taxes

8,501

8,476

Provision for income tax expense 

1,477

1,609

NET INCOME

$         7,024

$          6,867




PER COMMON SHARE DATA:



Net Income - Basic

$           1.49

$            1.71

Net Income - Diluted

$           1.49

$            1.71

Cash Dividends Paid 

$         0.490

$          0.480




Number of shares used in computation - basic

4,701,853

4,005,370

Number of shares used in computation - diluted

4,701,853

4,005,375

 

CITIZENS FINANCIAL SERVICES, INC.






QUARTERLY CONDENSED, CONSOLIDATED INCOME (LOSS) STATEMENT INFORMATION





(UNAUDITED)






(in thousands, except per share data)


Three Months Ended,




March 31,

Dec 31,

Sept 30,

June 30,

March 31,


2024

2023

2023

2023

2023

Interest income

$      37,933

$        38,512

$        36,689

$        26,810

$        25,107

Interest expense

16,975

16,657

14,285

8,889

7,027

Net interest income

20,958

21,855

22,404

17,921

18,080

Provision for credit losses

785

200

475

262

-

Provision for credit losses - acquisition day 1 non-PCD

-

-

-

4,591

-

Net interest income after provision for credit losses

20,173

21,655

21,929

13,068

18,080

Non-interest income

4,916

3,410

3,593

2,405

2,392

Investment securities gains (losses), net

55

79

69

(125)

(218)

Non-interest expenses

16,643

15,920

16,444

20,680

11,778

Income (loss) before provision for income taxes

8,501

9,224

9,147

(5,332)

8,476

Provision for income tax expense (benefit)

1,477

1,684

1,599

(1,188)

1,609

Net income (loss)

$        7,024

$         7,540

$         7,548

$        (4,144)

$         6,867

Earnings (Loss) Per Share Basic

$          1.49

$           1.60

$           1.61

$          (1.01)

$           1.71

Earnings (Loss) Per Share Diluted

$          1.49

$           1.60

$           1.61

$          (1.01)

$           1.71

 

CITIZENS FINANCIAL SERVICES, INC.

CONSOLIDATED AVERAGE BALANCES, INTEREST, YIELDS AND RATES, AND NET INTEREST MARGIN ON A FULLY TAX-EQUIVALENT BASIS

(UNAUDITED)



Three Months Ended March 31,


2024

2023


Average


Average

Average


Average


Balance (1)

Interest

Rate

Balance (1)

Interest

Rate

(dollars in thousands)

$

$

%

$

$

%

ASSETS







Interest-bearing deposits at banks

29,184

212

2.92

14,129

27

0.78

Interest bearing time deposits at banks

4,054

31

3.08

6,055

44

3.00

Investment securities:







  Taxable

362,963

2,025

2.23

380,537

1,870

1.97

  Tax-exempt (3)

107,497

674

2.51

120,413

781

2.59

Investment securities

470,460

2,699

2.29

500,950

2,651

2.12

Loans: (2)(3)(4)







  Residential mortgage loans

359,720

5,059

5.66

212,015

2,704

5.17

  Construction loans

189,898

3,491

7.39

85,432

1,139

5.41

  Commercial Loans

1,236,308

19,519

6.35

935,212

12,325

5.34

  Agricultural Loans

344,468

4,405

5.14

344,291

4,253

5.01

  Loans to state & political subdivisions

56,648

550

3.90

59,318

543

3.71

  Other loans

110,140

2,217

8.10

97,833

1,692

7.01

  Loans, net of discount (2)(3)(4)

2,297,182

35,241

6.17

1,734,101

22,656

5.30

Total interest-earning assets

2,800,880

38,183

5.48

2,255,235

25,378

4.56

Cash and due from banks

9,822



7,039



Bank premises and equipment

21,289



17,617



Other assets

178,841



90,409



Total non-interest earning assets

209,952



115,065



Total assets

3,010,832



2,370,300



LIABILITIES AND STOCKHOLDERS' EQUITY







Interest-bearing liabilities:







  NOW accounts

799,968

5,223

2.63

510,198

1,517

1.21

  Savings accounts

302,091

387

0.52

319,408

206

0.26

  Money market accounts

381,042

2,793

2.95

321,178

1,274

1.61

  Certificates of deposit

422,420

3,918

3.73

279,244

942

1.37

Total interest-bearing deposits

1,905,521

12,321

2.60

1,430,028

3,939

1.12

Other borrowed funds

375,972

4,654

4.98

299,119

3,088

4.19

Total interest-bearing liabilities

2,281,493

16,975

2.99

1,729,147

7,027

1.65

Demand deposits

370,951



375,003



Other liabilities

49,488



27,064



Total non-interest-bearing liabilities

420,439



402,067



Stockholders' equity

308,900



239,086



Total liabilities & stockholders' equity

3,010,832



2,370,300



Net interest income


21,208



18,351


Net interest spread (5)



2.49 %



2.91 %

Net interest income as a percentage







  of average interest-earning assets



3.05 %



3.30 %

Ratio of interest-earning assets







  to interest-bearing liabilities



123 %



130 %








(1) Averages are based on daily averages.

(2) Includes loan origination and commitment fees.

(3) Tax exempt interest revenue is shown on a tax equivalent basis for proper comparison using

       a statutory federal income tax rate of 21% for 2024 and 2023. See reconciliation of GAAP and non-gaap measures at the end 

       of the press release

(4) Income on non-accrual loans is accounted for on a cash basis, and the loan balances are included in interest-earning assets.

(5) Interest rate spread represents the difference between the average rate earned on interest-earning assets

      and the average rate paid on interest-bearing liabilities.

 

CITIZENS FINANCIAL SERVICES, INC.

CONSOLIDATED SUMMARY OF LOANS BY TYPE; NON-PERFORMING ASSETS; and ALLOWANCE FOR CREDIT LOSSES

(UNAUDITED)






(Excludes Loans Held for Sale)






(In Thousands)







March 31,

December 31,

September 30,

June 30, 

March 31,


2024

2023

2023

2023

2023

Real estate:






  Residential

$          357,779

$        359,990

$        356,381

$        358,025

$        212,793

  Commercial

1,115,900

1,092,887

1,081,123

1,080,513

878,972

  Agricultural

318,413

314,802

314,164

312,302

312,793

  Construction

184,506

195,826

175,320

156,927

75,745

Consumer

53,101

61,316

115,753

42,701

87,101

Other commercial loans

129,438

136,168

120,347

120,288

64,133

Other agricultural loans

24,345

30,673

26,648

30,615

32,052

State & political subdivision loans

56,177

57,174

56,660

61,471

59,886

Total loans

2,239,659

2,248,836

2,246,396

2,162,842

1,723,475

Less: allowance for credit losses - loans

21,598

21,153

21,455

21,652

15,250

Net loans

$       2,218,061

$     2,227,683

$     2,224,941

$     2,141,190

$     1,708,225







Past due and non-performing assets












Total Loans past due 30-89 days and still accruing

$              6,311

$          10,457

$            5,960

$           4,828

$           1,336







Non-accrual loans

$            14,693

$          12,187

$          13,139

$          13,073

$          10,404

Loans past due 90 days or more and accruing

820

516

8

139

48

Non-performing loans

$            15,513

$          12,703

$          13,147

$          13,212

$          10,452

OREO

200

474

474

426

428

Total Non-performing assets

$            15,713

$          13,177

$          13,621

$          13,638

$          10,880




















Three Months Ended

Analysis of the Allowance for Credit Losses - Loans

March 31,

December 31,

September 30,

June 30,

March 31,

(In Thousands)

2024

2023

2023

2023

2023

Balance, beginning of period

$            21,153

$          21,455

$          21,652

$          15,250

$          18,552

Impact of Adopting ASC 326

-

-

-

-

(3,300)

Charge-offs

(674)

(510)

(808)

(4)

(7)

Recoveries

7

8

10

26

5

Net (charge-offs) recoveries

(667)

(502)

(798)

22

(2)

PCD allowance for credit loss at acquisition

-

-

-

1,689

-

Provision for credit losses - loans

1,112

200

601

100

-

Provision for credit losses - acquisition day 1 non-PCD

-

-

-

4,591

-

Balance, end of period

$            21,598

$          21,153

$          21,455

$          21,652

$          15,250

 

CITIZENS FINANCIAL SERVICES, INC.



Reconciliation of GAAP and Non-GAAP Financial Measures



(UNAUDITED)



(Dollars in thousands, except per share data)







As of 


March 31


2024

2023

Tangible Equity



Stockholders Equity - GAAP

$           282,674

$            213,238

Accumulated other comprehensive loss

26,620

26,762

Intangible Assets

(89,208)

(32,557)

Tangible Equity - Non-GAAP

220,086

207,443

Shares outstanding adjusted for June 2023 stock Dividend

4,706,991

4,010,258

Tangible Book value per share - Non-GAAP

$               46.76

$                51.73





As of 


March 31


2024

2023

Tangible Equity per share



Stockholders Equity per share - GAAP

$               60.05

$                53.17

Adjustments for accumulated other comprehensive loss

5.66

6.68

Book value per share

65.71

59.85

Adjustment for intangible assets

(18.95)

(8.12)

Tangible Book value per share - Non-GAAP

$               46.76

$                51.73








For the Three Months Ended


March 31


2024

2023

Return on Average Tangible Equity



Average Stockholders Equity - GAAP

$           282,484

$            207,873

Average Accumulated Other Comprehensive Loss 

26,416

31,213

Average Intangible Assets

(89,321)

(32,608)

Average Tangible Equity - Non-GAAP

219,579

206,478

Net Income - GAAP

$               7,024

$                6,867

Annualized Return on Average Tangible Equity Non-GAAP

12.80 %

13.30 %





For the Three Months Ended


March 31


2024

2023

Return on Average Assets and Equity Excluding sale of Braavo assets, net of
legal fees and merger and acquisition costs



Net Income - GAAP

$               7,024

$                6,867

Boli death benefits

-

-

After tax gain on sale of Braavo, net of legal fees

(712)

-

After tax merger and acquisition costs

-

244

Net Income excluding merger and acquisition costs - Non-GAAP

$               6,312

$                7,111

Average Assets

3,010,832

2,370,300

Annualized Return on Average assets, Excluding sale of Braavo assets, net of legal fees
and merger and acquisition costs - Non-GAAP

0.84 %

1.20 %




Average Stockholders Equity - GAAP

$           308,900

$            239,086

Annualized Return on Average stockholders equity, Excluding sale of Braavo assets, net of
legal fees and  merger and acquisition costs - Non-GAAP

8.17 %

11.90 %




Average Tangible Equity - Non-GAAP

219,579

206,478

Annualized Return on Average Tangible Equity  Excluding sale of Braavo assets, net of
legal fees and  merger and acquisition costs - Non-GAAP

11.50 %

13.78 %





For the Three Months Ended


March 31


2024

2023

Earnings per share, Excluding sale of Braavo assets, net of legal fees and 
merger and acquisition costs



Net Income - GAAP

$               7,024

$                7,875

Boli death benefits

-


After tax gain on sale of Braavo, net of legal fees

(712)

-

After Tax merger and acquisition costs

-

244

Net income excluding one time items - Non-GAAP

$               6,312

$                8,119

Number of shares used in computation - basic

4,701,853

4,005,375

Earnings per share, Excluding sale of Braavo assets, net of legal fees and  merger and
acquisition costs - Non-GAAP

$                 1.34

$                  2.03








For the Three Months Ended


March 31

Reconciliation of net interest income on fully taxable equivalent basis

2024

2023

Total interest income

$             37,933

$              25,107

Total interest expense

16,975

7,027

Net interest income

20,958

18,080

Tax equivalent adjustment

250

271

Net interest income (fully taxable equivalent) - Non-GAAP

$             21,208

$              18,351

 

 

Cision View original content:https://www.prnewswire.com/news-releases/citizens-financial-services-inc-reports-unaudited-first-quarter-2024-financial-results-302127935.html

SOURCE CITIZENS FINANCIAL SERVICES, INC.


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