MANSFIELD, Pa., April 27,
2023 /PRNewswire/ -- Citizens Financial Services, Inc
(Nasdaq: CZFS), parent company of First Citizens Community Bank,
released today its unaudited consolidated financial results for the
three months ended March 31,
2023.
Highlights
- Citizens Financial Services, Inc. has received regulatory
approval for the acquisition of HV Bancorp, Inc.("HVB"), with the
transaction expected to close on June 16,
2023.
- Net income was $6.9 million for
the three months ended March 31,
2023, which is 1.9% more than the net income for 2022's
comparable period. The increase was due to an increase in net
interest income. The effective tax rate for the three months ended
March 31, 2023 was 19.0% compared to
17.9% in the comparable period in 2022, with the increase being due
an increase in income before the provision of income taxes of
$264,000 and certain merger and
acquisition expenses not being tax deductible.
- Net interest income before the provision for credit losses was
$18.1 million for the three months
ended March 31, 2023, an increase of
$1,818,000, or 11.2%, over the same
period a year ago.
- Return on average equity for the three months (annualized)
ended March 31, 2023 was 11.49%
compared to 12.46% for the three months (annualized) ended
March 31, 2022.
- Return on average tangible equity for the three months
(annualized) ended March 31, 2023 was
13.30% compared to 14.70% for the three months (annualized) ended
March 31, 2022 (non-GAAP). (1)
- Return on average assets for the three months (annualized)
ended March 31, 2023 was 1.16%
compared to 1.26% for the three months (annualized) ended
March 31, 2022.
- Non-performing assets increased $1,952,000 since March 31,
2022 and total $10,905,000 as
of March 31, 2023, which is
$3.4 million higher than the balance
at December 31, 2022, and is due to
two commercial loan relationships, secured by real estate, being
placed on non-accrual status during the first quarter of 2023. As a
percent of loans, non-performing assets totaled 0.63%, 0.43% and
0.61% as of March 31, 2023,
December 31, 2022 and March 31, 2022.
First Quarter of 2023 Compared to the First Quarter of
2022
- For the three months ended March 31,
2023, net income totaled $6,867,000 which compares to net income of
$6,740,000 for the comparable period
of 2022, an increase of $127,000 or
1.9%. Basic earnings per share of $1.73 for the three months ended March 31, 2023 compares to $1.69 for the 2022 comparable period. Annualized
return on equity for the three months ended March 31, 2023 and 2022 was 11.49% and 12.46%,
while annualized return on assets was 1.16% and 1.26%,
respectively.
- Net interest income before the provision for credit losses for
the three months ended March 31, 2023
totaled $18,080,000 compared to
$16,262,000 for the three months
ended March 31, 2022, resulting in an
increase of $1,818,000, or 11.2%.
Average interest earning assets increased $211.6 million for the three months ended
March 31, 2023 compared to the same
period last year as a result of growth in investments and organic
loan growth funded by borrowings. Average loans increased
$279.0 million, while average
investment securities increased $46.8
million. The tax effected net interest margin for the three
months ended March 31, 2023 was 3.30%
compared to 3.27% for the same period last year. The yield on
interest earning assets increased 98 basis points to 4.56%, while
the cost of interest bearing liabilities increased 1.25% to 1.65%
due to the rise in market interest rates and competitive
pressure.
- Due to limited loan activity in the first quarter of 2023, no
provision was recorded for the first quarter of 2023 compared to a
provision of $250,000 for the first
quarter of 2022.
- Total non-interest income was $2,174,000 for the three months ended
March 31, 2023, which is $257,000 less than the comparable period last
year. The primary drivers were an increase in the loss on equity
securities of $173,000 as a result of
market performance when comparing 2023 to 2022 and gains on loans
sold which decreased $60,000 due to a
decrease in refinancing activity with the rise in market rates that
occurred throughout 2022 and the first quarter of 2023.
- Total non-interest expenses for the three months ended
March 31, 2023 totaled $11,778,000 compared to $10,231,000 for the same period last year, which
is an increase of $1,547,000, or
15.1%. Salary and benefit costs increased $764,000 due to an additional 8.4 FTEs and merit
increases for 2022 as well as an increase in health insurance costs
of $209,000. The increase in ORE
expenses of $393,000 is due to gains
on the sale of ORE properties that totaled $487,000 in 2022. The gains for 2023's first
quarter total $25,000. Merger and
acquisitions costs for the merger with HVB totaled $244,000 and include professional and consulting
fees, printing and travel related expenses.
- The provision for income taxes increased $137,000 when comparing the three months ended
March 31, 2023 to the same period in
2022 as a result of an increase in income before income tax of
$264,000. The effective tax rate was
19.0% and 17.9% for the three months ended March 31, 2023 and 2022, respectively. It should
be noted the certain merger and acquisition expenses are not
tax-deductible.
Balance Sheet and Other Information:
- At March 31, 2023, total assets
were $2.34 billion compared to
$2.33 billion at December 31, 2022 and $2.18 billion at March 31,
2022. The loan to deposit ratio as of March 31, 2023 was 95.77% compared to 93.54% as
of December 31, 2022 and 78.69% as of
March 31, 2022.
- Available for sale securities of $443.4
million at March 31, 2023
increased $3.9 million from
December 31, 2022 and decreased
$18.1 million from March 31, 2022. The yield on the investment
portfolio increased from 1.70% to 2.12% on a tax equivalent basis
due to securities purchased in 2022 during a higher rate
environment. Investment activity has been limited in the first
quarter of 2023 as we prepare for the merger with HVB.
- Net loans as of March 31, 2023
totaled $1.71 billion and increased
$1.8 million from December 31, 2022, due to a decrease in the
allowance for credit losses - loans as a result of implementing the
current expected credit losses (CECL) accounting standard,
effective January 1, 2023. In
comparison to March 31, 2022, loans
have grown $247.1 million, or
16.9%.
- The allowance for credit losses - loans totaled $15,250,000 at March 31,
2023 which is a decrease of $3,302,000 from December
31, 2022 and is due to implementing the CECL accounting
standard, effective January 1, 2023.
Due to limited loan activity during the first quarter of 2023, no
provision was recorded. Loan recoveries and charge-offs were
$5,000 and $7,000, respectively, for the three months ended
March 31, 2023. The allowance as a
percent of total loans was 0.88% as of March
31, 2023 and 1.08% as of December 31,
2022.
- Deposits decreased $44.5 million
from December 31, 2022, to
$1.80 billion at March 31, 2023. With the rise in interest rates,
competitive pressure for deposits has increased. Additionally, we
have numerous state and political organizations as customers who
are utilizing funds during the first quarter of 2023 for various
projects and bond payments. We have not lost any major deposit
customers during the first quarter of 2023.
- Stockholders' equity totaled $213.2
million at March 31, 2023,
compared to $200.1 million at
December 31, 2022, an increase of
$13.1 million. Excluding accumulated
other comprehensive loss (AOCI), stockholders equity increased
$6.7 million and totals $240.0 million. The increase in stockholders
equity, excluding AOCI, was attributable to net income for the
three months ended March 31, 2023
totaling $6.9 million, offset by cash
dividends for the first quarter totaling $1.9 and an increase of $1.8 million attributable to the CECL adjustment
made effective January 1, 2023. As a
result of changes in market interest rates impacting the fair value
of investment securities and swaps, AOCI increased $6.4 million from December
31, 2022.
Dividend Declared
On February 28, 2023, the Board of
Directors declared a cash dividend of $0.485 per share, which was paid on March 31, 2023 to shareholders of record at the
close of business on March 10, 2023.
This quarterly cash dividend is an increase of 3.1% over the
regular cash dividend of $0.470 per
share declared one year ago, as adjusted for the 1% stock dividend
declared in June 2022.
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,
|
|
|
2023
|
2022
|
|
Income and
Performance Ratios
|
|
|
|
Net
Income
|
$
6,867
|
$
6,740
|
|
Return on average
assets (annualized)
|
1.16 %
|
1.26 %
|
|
Return on average
equity (annualized)
|
11.49 %
|
12.46 %
|
|
Return on average
tangible equity (annualized) (a)
|
13.30 %
|
14.70 %
|
|
Net interest margin
(tax equivalent)(a)
|
3.30 %
|
3.27 %
|
|
Earnings per share -
basic (b)
|
$
1.73
|
$
1.69
|
|
Earnings per share -
diluted (b)
|
$
1.73
|
$
1.69
|
|
Cash dividends paid per
share (b)
|
$
0.485
|
$
0.470
|
|
Number of shares used
in computation - basic (b)
|
3,966,161
|
3,977,911
|
|
Number of shares used
in computation - diluted (b)
|
3,966,166
|
3,977,968
|
|
|
|
|
|
|
|
|
|
Asset
quality
|
|
|
|
Allowance for credit
losses - loans
|
$
15,250
|
$
17,556
|
|
Non-performing
assets
|
$
10,873
|
$
8,953
|
|
Allowance for credit
losses - loans/total loans
|
0.88 %
|
1.19 %
|
|
Non-performing assets
to total loans
|
0.63 %
|
0.61 %
|
|
Annualized net
(recoveries) charge-offs to total loans
|
0.00 %
|
0.00 %
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
Book value per share
(b)
|
$
60.44
|
$
54.61
|
|
Tangible Book value per
share (a) (b)
|
$
52.24
|
$
46.34
|
|
Market Value (Last
reported trade of month)
|
$
83.55
|
$
63.50
|
|
Common shares
outstanding
|
3,971,049
|
3,944,347
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
Average Full Time
Equivalent Employees
|
313.2
|
304.7
|
|
Loan to Deposit
Ratio
|
95.77 %
|
78.69 %
|
|
Trust assets under
management
|
$
156,599
|
$ 156,245
|
|
Brokerage assets under
management
|
$
294,925
|
$ 280,635
|
|
|
|
|
|
|
|
|
|
Balance Sheet
Highlights
|
March
31,
|
December 31,
|
March 31,
|
|
2023
|
2022
|
2022
|
|
|
|
|
Assets
|
$
2,335,398
|
$
2,333,393
|
$ 2,177,887
|
Investment
securities
|
445,338
|
441,714
|
463,915
|
Loans (net of unearned
income)
|
1,723,475
|
1,724,999
|
1,478,695
|
Allowance for credit
losses - loans
|
15,250
|
18,552
|
17,556
|
Deposits
|
1,799,687
|
1,844,208
|
1,879,090
|
Stockholders'
Equity
|
213,238
|
200,147
|
202,745
|
|
|
|
(a) See reconcilation
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)
|
2023
|
2022
|
2022
|
ASSETS:
|
|
|
|
Cash and due from
banks:
|
|
|
|
Noninterest-bearing
|
$
24,249
|
$
24,814
|
$
30,934
|
Interest-bearing
|
1,924
|
1,397
|
83,181
|
Total cash and cash
equivalents
|
26,173
|
26,211
|
114,115
|
|
|
|
|
Interest bearing time
deposits with other banks
|
6,055
|
6,055
|
10,528
|
|
|
|
|
Equity
securities
|
1,923
|
2,208
|
2,444
|
|
|
|
|
Available-for-sale
securities
|
443,415
|
439,506
|
461,471
|
|
|
|
|
Loans held for
sale
|
671
|
725
|
644
|
|
|
|
|
Loans (net of allowance
for credit losses - loans: $15,250 at March 31,
2023;
|
|
|
|
$18,552 at December 31, 2022 and $17,556 at March 31,
2022)
|
1,708,225
|
1,706,447
|
1,461,139
|
|
|
|
|
Premises and
equipment
|
17,588
|
17,619
|
16,852
|
Accrued interest
receivable
|
7,176
|
7,332
|
5,414
|
Goodwill
|
31,376
|
31,376
|
31,376
|
Bank owned life
insurance
|
39,573
|
39,355
|
38,710
|
Other
intangibles
|
1,181
|
1,272
|
1,547
|
Fair value of
derivative instruments
|
14,197
|
16,599
|
10,816
|
Deferred tax
asset
|
10,786
|
12,886
|
8,080
|
Other assets
|
27,059
|
25,802
|
14,751
|
|
|
|
|
TOTAL
ASSETS
|
$
2,335,398
|
$
2,333,393
|
$
2,177,887
|
|
|
|
|
LIABILITIES:
|
|
|
|
Deposits:
|
|
|
|
Noninterest-bearing
|
$
369,658
|
$
396,260
|
$
366,820
|
Interest-bearing
|
1,430,029
|
1,447,948
|
1,512,270
|
Total
deposits
|
1,799,687
|
1,844,208
|
1,879,090
|
Borrowed
funds
|
288,059
|
257,278
|
68,214
|
Accrued interest
payable
|
1,768
|
1,232
|
714
|
Fair value of
derivative instruments - liability
|
8,234
|
9,726
|
6,448
|
Other
liabilities
|
24,412
|
20,802
|
20,676
|
TOTAL
LIABILITIES
|
2,122,160
|
2,133,246
|
1,975,142
|
STOCKHOLDERS'
EQUITY:
|
|
|
|
Preferred Stock $1.00
par value; authorized
|
|
|
|
3,000,000
shares; none issued in 2023 or 2022
|
-
|
-
|
-
|
Common stock
|
|
|
|
$1.00 par value;
authorized 25,000,000 shares at March 31, 2023, December 31, 2022
and
|
|
|
|
March 31, 2022:
issued 4,427,687 at March 31, 2023 and December 31, 2022
and
|
|
|
|
4,388,901 at
March 31, 2022
|
4,428
|
4,428
|
4,389
|
Additional paid-in
capital
|
80,926
|
80,911
|
78,396
|
Retained
earnings
|
171,629
|
164,922
|
150,876
|
Accumulated other
comprehensive loss
|
(26,762)
|
(33,141)
|
(14,765)
|
Treasury stock, at
cost: 456,638 at March 31, 2023 and 456,478
shares
|
|
|
|
at December 31,
2022 and 444,554 shares at March 31, 2022
|
(16,983)
|
(16,973)
|
(16,151)
|
TOTAL STOCKHOLDERS'
EQUITY
|
213,238
|
200,147
|
202,745
|
TOTAL LIABILITIES
AND
|
|
|
|
STOCKHOLDERS' EQUITY
|
$
2,335,398
|
$
2,333,393
|
$
2,177,887
|
CITIZENS FINANCIAL
SERVICES, INC.
|
|
|
CONSOLIDATED
STATEMENT OF INCOME
|
|
|
(UNAUDITED)
|
|
|
|
Three Months
Ended
|
|
March
31,
|
(in thousands,
except share and per share data)
|
2023
|
2022
|
INTEREST
INCOME:
|
|
|
Interest and fees on
loans
|
$ 22,549
|
$
15,920
|
Interest-bearing
deposits with banks
|
71
|
116
|
Investment
securities:
|
|
|
Taxable
|
1,556
|
1,112
|
Nontaxable
|
617
|
583
|
Dividends
|
314
|
84
|
TOTAL INTEREST
INCOME
|
25,107
|
17,815
|
INTEREST
EXPENSE:
|
|
|
Deposits
|
3,939
|
1,275
|
Borrowed
funds
|
3,088
|
278
|
TOTAL INTEREST
EXPENSE
|
7,027
|
1,553
|
NET INTEREST
INCOME
|
18,080
|
16,262
|
Provision for credit
losses
|
-
|
250
|
NET INTEREST INCOME
AFTER
|
|
|
PROVISION FOR CREDIT LOSSES
|
18,080
|
16,012
|
NON-INTEREST
INCOME:
|
|
|
Service
charges
|
1,211
|
1,248
|
Trust
|
230
|
249
|
Brokerage and
insurance
|
514
|
481
|
Gains on loans
sold
|
45
|
105
|
Equity security losses,
net
|
(218)
|
(45)
|
Earnings on bank owned
life insurance
|
218
|
207
|
Other
|
174
|
186
|
TOTAL NON-INTEREST
INCOME
|
2,174
|
2,431
|
NON-INTEREST
EXPENSES:
|
|
|
Salaries and employee
benefits
|
7,677
|
6,913
|
Occupancy
|
835
|
794
|
Furniture and
equipment
|
151
|
129
|
Professional
fees
|
381
|
339
|
FDIC insurance
expense
|
300
|
135
|
Pennsylvania shares
tax
|
298
|
339
|
Amortization of
intangibles
|
31
|
40
|
Software
expenses
|
351
|
341
|
ORE expenses
(income)
|
26
|
(367)
|
Merger and acquisition
expenses
|
244
|
-
|
Other
|
1,484
|
1,568
|
TOTAL NON-INTEREST
EXPENSES
|
11,778
|
10,231
|
Income before provision
for income taxes
|
8,476
|
8,212
|
Provision for income
taxes
|
1,609
|
1,472
|
NET
INCOME
|
$
6,867
|
$
6,740
|
|
|
|
PER COMMON SHARE
DATA:
|
|
|
Net Income -
Basic
|
$
1.73
|
$
1.69
|
Net Income -
Diluted
|
$
1.73
|
$
1.69
|
Cash Dividends
Paid
|
$
0.485
|
$
0.470
|
|
|
|
Number of shares used
in computation - basic
|
3,966,161
|
3,977,911
|
Number of shares used
in computation - diluted
|
3,966,166
|
3,977,968
|
CITIZENS FINANCIAL
SERVICES, INC.
|
|
|
|
|
|
QUARTERLY CONDENSED,
CONSOLIDATED INCOME STATEMENT INFORMATION
|
|
|
|
|
(UNAUDITED)
|
|
|
|
|
|
(in thousands,
except per share data)
|
|
Three Months
Ended,
|
|
|
|
March
31,
|
Dec 31,
|
Sept 30,
|
June 30,
|
March 31,
|
|
2023
|
2022
|
2022
|
2022
|
2022
|
Interest
income
|
$ 25,107
|
$ 24,352
|
$ 21,783
|
$ 19,407
|
$ 17,815
|
Interest
expense
|
7,027
|
5,055
|
2,937
|
1,678
|
1,553
|
Net interest
income
|
18,080
|
19,297
|
18,846
|
17,729
|
16,262
|
Provision for credit
losses
|
-
|
258
|
725
|
450
|
250
|
Net interest income
after provision for credit losses
|
18,080
|
19,039
|
18,121
|
17,279
|
16,012
|
Non-interest
income
|
2,392
|
2,368
|
2,717
|
2,438
|
2,476
|
Investment
securities losses, net
|
(218)
|
(57)
|
(25)
|
(134)
|
(45)
|
Non-interest
expenses
|
11,778
|
11,649
|
11,614
|
11,200
|
10,231
|
Income before
provision for income taxes
|
8,476
|
9,701
|
9,199
|
8,383
|
8,212
|
Provision for income
taxes
|
1,609
|
1,826
|
1,655
|
1,482
|
1,472
|
Net
income
|
$
6,867
|
$
7,875
|
$
7,544
|
$
6,901
|
$
6,740
|
Earnings Per Share
Basic
|
$
1.73
|
$
1.99
|
$
1.90
|
$
1.74
|
$
1.69
|
Earnings Per Share
Diluted
|
$
1.73
|
$
1.99
|
$
1.90
|
$
1.74
|
$
1.69
|
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,
|
|
2023
|
2022
|
|
Average
|
|
Average
|
Average
|
|
Average
|
|
Balance
(1)
|
Interest
|
Rate
|
Balance (1)
|
Interest
|
Rate
|
(dollars in
thousands)
|
$
|
$
|
%
|
$
|
$
|
%
|
ASSETS
|
|
|
|
|
|
|
Short-term
investments:
|
|
|
|
|
|
|
Interest-bearing
deposits at banks
|
14,129
|
27
|
0.78
|
123,379
|
46
|
0.15
|
Total short-term
investments
|
14,129
|
27
|
0.78
|
123,379
|
46
|
0.15
|
Interest bearing time
deposits at banks
|
6,055
|
44
|
3.00
|
10,957
|
70
|
2.59
|
Investment
securities:
|
|
|
|
|
|
|
Taxable
|
380,537
|
1,870
|
1.97
|
339,097
|
1,196
|
1.41
|
Tax-exempt
(3)
|
120,413
|
781
|
2.59
|
115,020
|
738
|
2.57
|
Investment
securities
|
500,950
|
2,651
|
2.12
|
454,117
|
1,934
|
1.70
|
Loans:
(2)(3)(4)
|
|
|
|
|
|
|
Residential
mortgage loans
|
212,015
|
2,704
|
5.17
|
200,838
|
2,331
|
4.71
|
Construction
loans
|
85,432
|
1,139
|
5.41
|
61,518
|
607
|
4.00
|
Commercial
Loans
|
935,212
|
12,325
|
5.34
|
767,830
|
8,582
|
4.53
|
Agricultural
Loans
|
344,291
|
4,253
|
5.01
|
350,784
|
3,749
|
4.33
|
Loans to state
& political subdivisions
|
59,318
|
543
|
3.71
|
46,984
|
367
|
3.17
|
Other
loans
|
97,833
|
1,692
|
7.01
|
27,193
|
349
|
5.20
|
Loans, net of
discount (2)(3)(4)
|
1,734,101
|
22,656
|
5.30
|
1,455,147
|
15,985
|
4.46
|
Total
interest-earning assets
|
2,255,235
|
25,378
|
4.56
|
2,043,600
|
18,035
|
3.58
|
Cash and due from
banks
|
7,039
|
|
|
6,393
|
|
|
Bank premises and
equipment
|
17,617
|
|
|
16,976
|
|
|
Other assets
|
90,409
|
|
|
79,371
|
|
|
Total non-interest
earning assets
|
115,065
|
|
|
102,740
|
|
|
Total
assets
|
2,370,300
|
|
|
2,146,340
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Interest-bearing
liabilities:
|
|
|
|
|
|
|
NOW
accounts
|
510,198
|
1,517
|
1.21
|
501,502
|
319
|
0.26
|
Savings
accounts
|
319,408
|
206
|
0.26
|
317,176
|
74
|
0.09
|
Money market
accounts
|
321,178
|
1,274
|
1.61
|
346,073
|
223
|
0.26
|
Certificates of
deposit
|
279,244
|
942
|
1.37
|
322,867
|
659
|
0.83
|
Total interest-bearing
deposits
|
1,430,028
|
3,939
|
1.12
|
1,487,618
|
1,275
|
0.35
|
Other borrowed
funds
|
299,119
|
3,088
|
4.19
|
68,295
|
278
|
1.65
|
Total
interest-bearing liabilities
|
1,729,147
|
7,027
|
1.65
|
1,555,913
|
1,553
|
0.40
|
Demand
deposits
|
375,003
|
|
|
356,444
|
|
|
Other
liabilities
|
27,064
|
|
|
17,569
|
|
|
Total
non-interest-bearing liabilities
|
402,067
|
|
|
374,013
|
|
|
Stockholders'
equity
|
239,086
|
|
|
216,414
|
|
|
Total liabilities
& stockholders' equity
|
2,370,300
|
|
|
2,146,340
|
|
|
Net interest
income
|
|
18,351
|
|
|
16,482
|
|
Net interest spread
(5)
|
|
|
2.91 %
|
|
|
3.18 %
|
Net interest income as
a percentage
|
|
|
|
|
|
|
of average
interest-earning assets
|
|
|
3.30 %
|
|
|
3.27 %
|
Ratio of
interest-earning assets
|
|
|
|
|
|
|
to
interest-bearing liabilities
|
|
|
130 %
|
|
|
131 %
|
|
(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 2023 and 2022. 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 assetsand 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,
|
|
2023
|
2022
|
2022
|
2022
|
2022
|
Real estate:
|
|
|
|
|
|
Residential
|
$ 212,793
|
$ 210,213
|
$
203,673
|
$ 203,323
|
$ 201,567
|
Commercial
|
878,972
|
876,569
|
857,314
|
798,528
|
724,876
|
Agricultural
|
312,793
|
313,614
|
317,761
|
313,700
|
305,517
|
Construction
|
75,745
|
80,691
|
79,154
|
71,414
|
66,738
|
Consumer
|
87,101
|
86,650
|
124,375
|
50,319
|
21,460
|
Other commercial
loans
|
64,133
|
63,222
|
66,241
|
65,772
|
69,051
|
Other agricultural
loans
|
32,052
|
34,832
|
29,509
|
32,870
|
39,904
|
State & political
subdivision loans
|
59,886
|
59,208
|
59,926
|
59,450
|
49,582
|
Total loans
|
1,723,475
|
1,724,999
|
1,737,953
|
1,595,376
|
1,478,695
|
Less: allowance for
credit losses - loans
|
15,250
|
18,552
|
18,291
|
17,570
|
17,556
|
Net loans
|
$
1,708,225
|
$
1,706,447
|
$
1,719,662
|
$
1,577,806
|
$
1,461,139
|
|
|
|
|
|
|
Past due and
non-performing assets
|
|
|
|
|
|
|
|
|
|
|
|
Total Loans past due
30-89 days and still accruing
|
$
1,336
|
$
3,317
|
$
2,616
|
$
2,070
|
$
2,096
|
|
|
|
|
|
|
Non-accrual
loans
|
$
10,404
|
$
6,938
|
$
7,118
|
$
7,251
|
$
7,810
|
Loans past due 90 days
or more and accruing
|
41
|
7
|
93
|
139
|
12
|
Non-performing
loans
|
$
10,445
|
$
6,945
|
$
7,211
|
$
7,390
|
$
7,822
|
OREO
|
428
|
543
|
877
|
972
|
1,131
|
Total Non-performing
assets
|
$
10,873
|
$
7,488
|
$
8,088
|
$
8,362
|
$
8,953
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
Analysis of the
Allowance for Credit Losses - Loans
|
March 31,
|
December 31,
|
September
30,
|
June 30,
|
March 31,
|
(In
Thousands)
|
2023
|
2022
|
2022
|
2022
|
2022
|
Balance, beginning of
period
|
$
18,552
|
$
18,291
|
$
17,570
|
$
17,556
|
$
17,304
|
Impact of Adopting ASC
326
|
(3,300)
|
-
|
-
|
-
|
-
|
Charge-offs
|
(7)
|
(7)
|
(14)
|
(446)
|
(5)
|
Recoveries
|
5
|
10
|
10
|
10
|
7
|
Net (charge-offs)
recoveries
|
(2)
|
3
|
(4)
|
(436)
|
2
|
Provision for loan
losses
|
-
|
258
|
725
|
450
|
250
|
Balance, end of
period
|
$
15,250
|
$
18,552
|
$
18,291
|
$
17,570
|
$
17,556
|
CITIZENS FINANCIAL
SERVICES, INC.
|
|
|
Reconciliation of
GAAP and Non-GAAP Financial Measures
|
|
|
(UNAUDITED)
|
|
|
(Dollars in
thousands, except per share data)
|
|
|
|
|
|
|
As of
|
|
March 31
|
|
2023
|
2022
|
Tangible
Equity
|
|
|
Stockholders Equity -
GAAP
|
$
213,238
|
$
202,745
|
Accumulated other
comprehensive (income) loss
|
26,762
|
14,765
|
Intangible
Assets
|
(32,557)
|
(32,923)
|
Tangible Equity -
Non-GAAP
|
207,443
|
184,587
|
Shares outstanding
adjusted for June 2022 stock Dividend
|
3,971,049
|
3,983,133
|
Tangible Book value per
share
|
$
52.24
|
$
46.34
|
|
|
|
|
As of
|
|
March 31
|
|
2023
|
2022
|
Tangible Equity per
share
|
|
|
Stockholders Equity per
share - GAAP
|
$
53.70
|
$
50.90
|
Adjustments for
accumulated other comprehensive loss (income)
|
6.74
|
3.71
|
Book value per
share
|
60.44
|
54.61
|
Adjustment for
intangible assets
|
(8.20)
|
(8.27)
|
Tangible Book value per
share - Non-GAAP
|
$
52.24
|
$
46.34
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
March 31
|
|
2023
|
2022
|
Return on Average
Tangible Equity
|
|
|
Average Stockholders
Equity - GAAP
|
$
207,873
|
$
212,517
|
Average Accumulated
Other Comprehensive Loss (Income)
|
31,213
|
3,897
|
Average Intangible
Assets
|
(32,608)
|
(32,956)
|
Average Tangible Equity
- Non-GAAP
|
206,478
|
183,458
|
Net Income
|
$
6,867
|
$
6,740
|
Annualized Return on
Average Tangible Equity
|
13.30 %
|
14.70 %
|
|
|
|
|
For the Three Months
Ended
|
|
March
31,
|
Reconciliation of
net interest income on fully taxable equivalent
basis
|
2023
|
2022
|
Total interest
income
|
$
25,107
|
$
17,815
|
Total interest
expense
|
7,027
|
1,553
|
Net interest
income
|
18,080
|
16,262
|
Tax equivalent
adjustment
|
271
|
220
|
Net interest income
(fully taxable equivalent)
|
$
18,351
|
$
16,482
|
View original
content:https://www.prnewswire.com/news-releases/citizens-financial-services-inc-reports-unaudited-first-quarter-2023-financial-results-301810303.html
SOURCE Citizens Financial Services, Inc.