citizens financial services, inc. reports unaudited first quarter 2024 financial results

MANSFIELD, PENNSYLVANIA- April 25, 2024 - 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 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)
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

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Citizens Financial Services Inc. published this content on 25 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 April 2024 20:21:17 UTC.