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CITIZENS FINANCIAL SERVICES, INC. REPORTS UNAUDITED FULL YEAR AND FOURTH QUARTER 2024 FINANCIAL RESULTS

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Citizens Financial Services (NASDAQ: CZFS) reported its full-year and fourth quarter 2024 financial results. The company achieved net income of $27.8 million for 2024, representing a 56.2% increase from 2023, primarily due to one-time merger costs and provisions recorded in 2023 related to the HV Bancorp acquisition.

Key highlights include: net interest income before provision for credit losses increased 7.7% to $86.5 million; completion of Braavo division asset sale for $7.2 million with a pre-tax gain of $1.1 million; and return on average equity of 9.59% for 2024. Total assets reached $3.03 billion, with net loans totaling $2.29 billion. The company declared a quarterly cash dividend of $0.49 per share, a 1.0% increase from the previous year.

Citizens Financial Services (NASDAQ: CZFS) ha riportato i risultati finanziari del quarto trimestre e dell'intero anno 2024. L'azienda ha registrato un reddito netto di 27,8 milioni di dollari per il 2024, con un incremento del 56,2% rispetto al 2023, principalmente a causa dei costi di fusione straordinari e delle accantonamenti registrati nel 2023 relativi all'acquisizione di HV Bancorp.

I punti salienti includono: il reddito netto da interessi, prima dell'accantonamento per perdite di credito, è aumentato del 7,7% a 86,5 milioni di dollari; completamento della vendita delle attività della divisione Braavo per 7,2 milioni di dollari con un guadagno ante imposte di 1,1 milioni di dollari; e un ritorno sul patrimonio medio dell'9,59% per il 2024. Gli attivi totali hanno raggiunto 3,03 miliardi di dollari, con prestiti netti per un totale di 2,29 miliardi di dollari. L'azienda ha dichiarato un dividendo in contante trimestrale di 0,49 dollari per azione, con un incremento dell'1,0% rispetto all'anno precedente.

Citizens Financial Services (NASDAQ: CZFS) informó sus resultados financieros del cuarto trimestre y del año completo 2024. La compañía logró un ingreso neto de 27,8 millones de dólares para 2024, que representa un aumento del 56,2% con respecto a 2023, principalmente debido a costos de fusión únicos y provisiones registradas en 2023 relacionadas con la adquisición de HV Bancorp.

Los aspectos destacados incluyen: los ingresos netos por intereses antes de la provisión para pérdidas crediticias aumentaron un 7,7% a 86,5 millones de dólares; finalización de la venta de activos de la división Braavo por 7,2 millones de dólares con una ganancia antes de impuestos de 1,1 millones de dólares; y un retorno sobre el patrimonio promedio del 9,59% para 2024. Los activos totales alcanzaron 3,03 mil millones de dólares, con préstamos netos que totalizan 2,29 mil millones de dólares. La compañía declaró un dividendo en efectivo trimestral de 0,49 dólares por acción, un aumento del 1,0% respecto al año anterior.

시티즌스 파이낸셜 서비스 (NASDAQ: CZFS)가 2024년 전체 연도 및 4분기 재무 결과를 발표했습니다. 이 회사는 2024년 순이익이 2,780만 달러에 달하며, 이는 2023년 대비 56.2% 증가한 수치로, 주로 2023년에 HV Bancorp 인수와 관련하여 기록된 일회성 합병 비용 및 충당금 때문입니다.

주요 하이라이트로는: 신용 손실 충당금 제외한 순 이자 수익이 7.7% 증가하여 8,650만 달러에 달했고; 브라바오 부문 자산 매각이 720만 달러에 완료되어 세전 이익이 110만 달러 발생했습니다; 2024년 평균 자본 수익률은 9.59%였습니다. 총 자산은 30억 달러에 도달했으며, 순 대출은 22억 9천만 달러입니다. 회사는 주당 0.49달러의 분기 현금 배당금을 선언했으며, 이는 전년 대비 1.0% 증가한 수치입니다.

Citizens Financial Services (NASDAQ: CZFS) a annoncé ses résultats financiers pour le quatrième trimestre et l'année entière 2024. L'entreprise a réalisé un revenu net de 27,8 millions de dollars pour 2024, ce qui représente une augmentation de 56,2 % par rapport à 2023, principalement due aux coûts de fusion uniques et aux provisions comptabilisées en 2023 liés à l'acquisition de HV Bancorp.

Les points saillants incluent : le revenu net d'intérêts avant provision pour pertes sur créances a augmenté de 7,7 % pour atteindre 86,5 millions de dollars ; la finalisation de la vente d'actifs de la division Braavo pour 7,2 millions de dollars avec un gain avant impôt de 1,1 million de dollars ; et un retour sur fonds propres moyen de 9,59 % pour 2024. Les actifs totaux ont atteint 3,03 milliards de dollars, avec des prêts nets totalisant 2,29 milliards de dollars. L'entreprise a déclaré un dividende en espèces trimestriel de 0,49 dollar par action, soit une augmentation de 1,0 % par rapport à l'année précédente.

Citizens Financial Services (NASDAQ: CZFS) hat seine Finanzzahlen für das vierte Quartal und das gesamte Jahr 2024 veröffentlicht. Das Unternehmen erzielte einen Nettogewinn von 27,8 Millionen Dollar für 2024, was einem Anstieg von 56,2% im Vergleich zu 2023 entspricht, hauptsächlich aufgrund einmaliger Fusionskosten und Rückstellungen, die 2023 im Zusammenhang mit der Übernahme von HV Bancorp verbucht wurden.

Wesentliche Highlights sind: die Nettozinsgewinne vor Rückstellungen für Kreditausfälle stiegen um 7,7% auf 86,5 Millionen Dollar; Abschluss des Verkaufs von Vermögenswerten der Braavo-Abteilung für 7,2 Millionen Dollar mit einem steuerlichen Gewinn von 1,1 Millionen Dollar; und eine Eigenkapitalrendite von 9,59% für 2024. Die Gesamtaktiva beliefen sich auf 3,03 Milliarden Dollar, die Nettokredite betrugen insgesamt 2,29 Milliarden Dollar. Das Unternehmen erklärte eine vierteljährliche Bardividende von 0,49 Dollar pro Aktie, ein Anstieg von 1,0% im Vergleich zum Vorjahr.

Positive
  • Net income increased 56.2% to $27.8 million in 2024
  • Net interest income grew 7.7% to $86.5 million
  • Sale of Braavo division assets generated $7.2 million with $1.1 million pre-tax gain
  • Quarterly dividend increased by 1.0% to $0.49 per share
Negative
  • Non-performing assets increased by $15.4 million to $28.6 million
  • Provision for credit losses of $2.6 million in 2024, significantly impacted by Braavo loans
  • Net interest margin declined to 3.13% from 3.21% in 2023
  • Charge-offs increased to $2.67 million, mainly from HVB acquisition loans

Insights

The 2024 financial results reveal both strengths and challenges for Citizens Financial Services. The headline 56.2% increase in net income to $27.8 million deserves careful interpretation, as it primarily reflects the absence of one-time merger costs from 2023 rather than core operational improvements.

Several concerning trends warrant attention:

  • Non-performing assets surged by $15.4 million to $28.6 million, with eight large commercial relationships deteriorating, including six from the HVB acquisition
  • The efficiency ratio and cost structure show pressure, with non-interest expenses increasing despite merger synergies
  • Deposit competition remains intense, with 48.7% of deposits exceeding FDIC insurance limits

However, there are notable positives:

  • Net interest income grew 7.7% despite challenging rate environment
  • Strategic disposal of Braavo assets demonstrates proactive risk management
  • Capital position remains solid with tangible equity metrics improving
  • Consistent dividend growth maintains shareholder returns

The key challenge ahead will be managing asset quality while maintaining profitability in a competitive deposit environment. The increase in problem loans, particularly from acquired assets, suggests potential earnings headwinds if credit costs continue to rise.

MANSFIELD, Pa., Jan. 30, 2025 /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 and year ended December 31, 2024.

Highlights

  • Net income was $27.8 million for 2024, which is $10.0 million, or 56.2%, more than 2024's net income due to the one-time merger and acquisition costs and the provision for credit losses on non-purchase credit deteriorated loans (the "NPC Provision") recorded in the second quarter of 2023 as a result of the acquisition of HV Bancorp, Inc., ("HVB"). The effective tax rate for 2024 was 17.4% compared to 17.2% in 2023.
  • Net income was $8.0 million for the three months ended December 31, 2024, which is 5.9% more than the net income for 2023's comparable period. The effective tax rate for the three months ended December 31, 2024 was 16.4% compared to 18.3% in the comparable period in 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.
  • Net interest income before the provision for credit losses was $86.5 million for 2024, an increase of $6.2 million, or 7.7%, over 2023.
  • The provision for credit losses for 2024 was $2.6 million. The provision was significantly impacted by loans that were not sold as part of the Braavo sale that was completed in the first quarter of 2024. The provision for 2024 directly attributable to these loans was $1,806,000. As of December 31, 2024, the Company had approximately $971,000 of Braavo loans of which $774,000 were considering performing as of December 31, 2024.
  • Return on average equity for the three months (annualized) and the year ended December 31, 2024 was 10.63% and 9.59% compared to 11.29% and 7.39% for the three months (annualized) and the year ended December 31, 2023, respectively. If accumulated other comprehenisve loss is excluded, the return on average equity for the three months (annualized) and the year ended December 31, 2024 was 9.91% and 8.82% compared to 9.93% and 6.52% for the three months (annualized) and the year ended December 31, 2023, respectively (1). If the provision for the credit losses attributable to the Braavo loans and the gain on the sale of Braavo are excluded, the return on average equity for the year ended December 31, 2024 would have been 9.84% (1).
  • Return on average tangible equity (non-GAAP) for the three months (annualized) and the year ended December 31, 2024 was 15.10% and 13.84% compared to 16.88% and 10.00% for the three months (annualized) and the year ended December 31, 2023, respectively. If the provision for the credit losses attributable to the Braavo loans and the gain on the sale of Braavo are excluded, the return on average tangible equity for the year ended December 31, 2024 would have been 14.19% (annualized) (1).
  • Return on average assets for the three months (annualized) and the year ended December 31, 2024 was 1.06% and 0.93% compared to 1.01% and 0.67% for the three months (annualized) and the year ended December 31, 2023, respectively. If the provision for the credit losses attributable to the Braavo loans and the gain on the sale of Braavo are excluded, the return on average assets for the year ended December 31, 2024 would have been 0.96% (annualized) (1).

2024 Compared to 2023

  • For 2024, net income totaled $27,818,000 which compares to net income of $17,811,000 for 2023, an increase of $10,007,000. Basic and diluted earnings per share were $5.86 and $5.85, respectively, for 2024 compares to $4.02 per share for 2023. Return on equity for 2024 and 2023 was 9.59% and 7.39%, while return on assets was 0.93% and 0.67%, respectively. The increase in performance when comparing 2024 to 2023 was due to the one time costs associated with the acquisition of HVB and the NPC Provision recorded in 2023.
  • Net interest income before the provision for credit loss for 2024 totaled $86,445,000 compared to $80,260,000 for 2023, resulting in an increase of $6,195,000, or 7.7%. Average interest earning assets increased $262.0 million in 2024 compared to 2023, primarily due to the HVB acquisition. Average loans increased $290.8 million while average investment securities decreased $31.2 million. The yield on interest earning assets increased 49 basis points to 5.56%, while the cost of interest-bearing liabilities increased 66 basis points to 3.00% due to the rise in market interest rates and competitive pressure. The tax effected net interest margin for 2024 was 3.13% compared to 3.21% for 2023.
  • The provision for credit losses for 2024 was $2,587,000 compared to $5,528,000 for 2023, a decrease of $2,941,000. The provision for 2024 was impacted by the Braavo loans as previously mentioned and an increase in past due, non-accrual and classified loans during the final three quarters of 2024. As a result of the HVB acquisition during 2023, the Company recorded a $4.6 million provision for credit losses for loans acquired that did not have any credit deterioration at the time of purchase. Excluding the impact of the acquisition from 2023, the provision would have increased $1,650,000 when comparing 2024 to 2023 with the increase being attributable to the Braavo loans and the increase in past due, non-accrual and substandard loans in 2024.
  • Total non-interest income was $15,401,000 for 2024, which is $3,796,000 more than the non-interest income of $11,605,000 for 2023. 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 all increased. Earnings on bank owned life insurance also increased due to the passing of a former employee in the first quarter of 2024. During 2024, the Company experienced a gain on its equity investment portfolio compared to a loss during 2023.
  • Total non-interest expenses for 2024 totaled $65,586,000 compared to $64,822,000 for 2023, which is an increase of $764,000, or 1.2%. Salary and benefit costs increased $4,357,000, or 12.5%, due to an additional 34.3 FTEs as a result of the acquisition, merit increases for 2024, as well as an increase in health insurance costs due to additional headcount and claims. The increases in occupancy, furniture and fixtures, software expenses and amortization expenses was due to the HVB acquisition and additional branches as part of it. FDIC insurance expense increased $521,000 due to the Company's increased size and the Bank's lower leverage capital ratio during the first half of 2024 compared to 2023. Professional fees increased due to increased legal expenses, of which $201,000 was related to the sale of certain Braavo assets. Pennsylvania shares tax increased due to the increased size of the Bank. 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 HVB acquisition, other expenses increased due to insurance reimbursement received in 2023 to cover amounts previously charged-off through expense. Merger and acquisitions costs for the HVB acquisition totaled $9,269,000 in 2023 and included professional and consulting fees, printing, travel, contract termination payments and severance-related expenses.
  • The provision for income taxes increased $2,161,000 when comparing 2024 to 2023 as a result of an increase in income before income tax of $12,168,000.

Three Months Ended December 31, 2024 Compared to December 31, 2023

  • For the three months ended December 31, 2024, net income totaled $7,983,000 which compares to net income of $7,540,000 for the comparable period of 2023, an increase of $443,000. Basic and diluted earnings per share of $1.68 for the three months ended December 31, 2024 compares to $1.59 for the 2023 comparable period. Annualized return on equity for the three months ended December 31, 2024 and 2023 was 10.63% and 11.29%, while annualized return on assets was 1.06% and 1.01%, respectively.
  • Net interest income before the provision for credit loss for the three months ended December 31, 2024 totaled $22,873,000 compared to $21,855,000 for the three months ended December 31, 2023, resulting in an increase of $1,018,000, or 4.7%. Average interest earning assets increased $20.3 million for the three months ended December 31, 2024 compared to the same period last year due to organic growth. Average loans increased $35.8 million while average investment securities decreased $14.0 million. The tax effected net interest margin for the three months ended December 31, 2024 was 3.26% compared to 3.13% for the same period last year, which was impacted by the increase in the average yield on interest earning assets of 16 basis points, to 5.65%.
  • There was no provision for credit losses recorded during the three months ended December 31, 2024 compared to a provision of credit losses of $200,000 for the three months ended December 31, 2023. The decrease in the provision is due to lower loan growth in the fourth quarter of 2024 compared to the same period in 2023.
  • Total non-interest income was $3,339,000 for the three months ended December 31, 2024, which is $150,000 less than for the comparable period last year. The primary driver was the decrease in gains on loans sold.
  • Total non-interest expenses for the three months ended December 31, 2024 totaled $16,668,000 compared to $15,920,000 for the same period last year, which is an increase of $748,000. Salaries and benefits increased $333,000 due primarily an increase in profit sharing expense accrued based on financial results for 2024. Pennsylvania shares tax increased due to the increased size of the Bank and timing and amount contributions that provide tax credits utilized as a reduction of the expense.
  • The provision for income taxes decreased $123,000 when comparing the three months ended December 31, 2024 to the same period in 2023 primarily due to tax credits and activity associated with our investments in various low income housing partnerships, as a third investment started to provide credits in the fourth quarter of 2024. The effective tax rate was 16.4% and 18.3% for the three months ended December 31, 2024 and 2023, respectively.

Balance Sheet and Other Information:

  • At December 31, 2024, total assets were $3.03 billion, compared to $2.98 billion at December 31, 2023. The loan to deposit ratio as of December 31, 2024 was 97.11% compared to 96.87% as of December 31, 2023.
  • Available for sale securities of $425.9 million at December 31, 2024 increased $8.3 million from December 31, 2023. The yield on the investment portfolio increased from 2.20% to 2.44% on a tax equivalent basis due to securities purchased during a higher rate environment and lower yielding securities maturing. During 2024, we purchased $70.4 million of investments, which offset the $62.9 million of investments that matured or were called during 2024.
  • Net loans as of December 31, 2024 totaled $2.29 billion an increase of $63.9 million from December 31, 2023, due to primarily to an increase in student loans outstanding. Loans would have increased an additional $6.1 million, if not for the Braavo disposition.
  • The allowance for credit losses - loans totaled $21,699,000 at December 31, 2024 which is an increase of $546,000 from December 31, 2023. The increase is due to change in expected prepayment speeds, changes in economic forecasts and an increase in past due and substandard loans. The provision for credit losses on loans was $3,176,000 for 2024 compared to $901,000 for 2023. Loan recoveries and charge-offs were $43,000 and $2,673,000, respectively, 2024 with the majority of the charge-offs associated with loans acquired as part of the HVB acquisition. If the Braavo charge-offs were excluded, charge-offs as a percent of average loans would decrease from 0.11% to 0.01%. The allowance as a percent of total loans was 0.94% as of December 31, 2024 and 2023.
  • Non-performing assets totaled $28.6 million as of December 31, 2024, an increase of $15.4 million since December 31, 2023. The increase was driven by eight large commercial relationships being placed on non-accrual status during 2024. Six of these relationships were acquired as part of the HVB acquisition. Several of the loans matured and took an extended period of time to be underwritten and extended in accordance with Company policies during which time payments were not received resulting the loans being placed on non-accrual status. Several relationships have started making payments under revised terms. Of these relationships, three required specific reserves as of December 31, 2024, which totaled approximately $459,000. Accruing loans past due 30-89 days totaled $8.0 million, a decrease of $2.4 million from December 31, 2023 that was driven by loans transferred to non-accrual status during 2024.
  • Deposits increased $60.5 million from December 31, 2023, to $2.38 billion at December 31, 2024. With the rise in market interest rates, competitive pressure for deposits continues to be at the forefront. Additionally, we have numerous state and political organization depositors with seasonal funding timelines. During 2024, brokered certificates of deposit decreased $16.2 million to $93.1 million. At December 31, 2024, the Bank estimates that deposit balances held by customers in excess of the FDIC insurance limit ($250,000 per insured account) totaled $1.16 billion, or 48.7% of the Bank's total deposits. Included in this balance are balances held through Intrafi, which provides customers with additional FDIC insurance, as well as deposits collateralized by securities or letters of credit (almost exclusively municipal deposits). The total of these items was $638.6 million, or 26.8% of the Bank's total deposits, as of December 31, 2024.
  • Stockholders' equity totaled $299.7 million at December 31, 2024, compared to $279.7 million at December 31, 2023, an increase of $20.1 million. Excluding accumulated other comprehensive loss (AOCL), stockholders' equity increased $18.7 million to $323.3 million at December 31, 2024. The increase in stockholders' equity, excluding AOCL, was attributable to net income for 2024 totaling $27.8 million, offset by cash dividends for 2024 totaling $9.3 million, net treasury stock activity of $412,000. As a result of decreases in market interest rates impacting the fair value of investment securities and swaps, AOCL decreased $1.4 million from December 31, 2023.

Dividend Declared

On December 3, 2024, the Board of Directors declared a cash dividend of $0.49 per share, which was paid on December 27, 2024 to shareholders of record at the close of business on December 13, 2024. The quarterly cash dividend is an increase of 1.0% over the regular cash dividend of $0.485 per share declared one year ago, as adjusted for the 1% stock dividend declared in June 2024.

Citizens Financial Services, Inc. has nearly 1,850 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

As of or For The


Three Months Ended

Year Ended


December 31,

December 31,


2024

2023

2024

2023

Income and Performance Ratios





Net Income

$              7,983

$          7,540

$          27,818

$        17,811

Return on average assets (annualized)

1.06 %

1.01 %

0.93 %

0.67 %

Return on average equity (annualized)

10.63 %

11.29 %

9.59 %

7.39 %

Return on average tangible equity (annualized) (a)

15.10 %

16.88 %

13.84 %

10.00 %

Net interest margin (tax equivalent) (a)

3.26 %

3.13 %

3.13 %

3.21 %

Earnings per share - basic (b)

$                1.68

$            1.59

$               5.86

$            4.02

Earnings per share - diluted (b)

$                1.68

$            1.59

$               5.85

$            4.02

Cash dividends paid per share (b)

$              0.490

$          0.485

$            1.950

$          1.920

Number of shares used in computation - basic (b)

4,750,062

4,746,719

4,750,185

4,429,162

Number of shares used in computation - diluted (b)

4,752,505

4,746,720

4,755,066

4,429,162











Asset quality





Allowance for credit losses - loans

$            21,699

$        21,153



Non-performing assets

$            28,612

$        13,177



Allowance for credit losses - loans to total loans

0.94 %

0.94 %



Non-performing assets to total loans

1.24 %

0.59 %



Annualized net charge-offs to total loans

0.01 %

0.09 %

0.11 %

0.06 %











Equity





Book value per share (b)

$              62.97

$          58.83



Tangible Book value per share (a) (b)

$              44.35

$          40.02



Market Value (Last reported trade of month)

$              63.31

$          64.72



Common shares outstanding

4,759,612

4,706,994













Other





Average Full Time Equivalent Employees

388.5

395.3

392.0

357.7

Loan to Deposit Ratio

97.11 %

96.87 %



Trust assets under management

$         180,710

$      167,894



Brokerage assets under management

$         395,869

$      329,446













Balance Sheet Highlights 

December 31,

December 31,




2024

2023








Assets

$      3,025,724

$   2,975,321



Investment securities

427,659

419,539



Loans (net of unearned income)

2,313,242

2,248,836



Allowance for credit losses - loans

21,699

21,153



Deposits

2,382,028

2,321,481



Stockholders' Equity

299,734

279,666













(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)







December 31,

December 31,

(in thousands except share data)

2024

2023

ASSETS:



Cash and due from banks:



  Noninterest-bearing

$           30,284

$         37,733

  Interest-bearing

11,918

15,085

Total cash and cash equivalents

42,202

52,818




Interest bearing time deposits with other banks

3,820

4,070




Equity securities

1,747

1,938




Available-for-sale securities

425,912

417,601




Loans held for sale

9,607

9,379




Loans (net of allowance for credit losses - loans: $21,699 at December 31, 2024; 



    $21,153 at December 31, 2023)

2,291,543

2,227,683




Premises and equipment

21,395

21,384

Accrued interest receivable

10,307

11,043

Goodwill

85,758

85,758

Bank owned life insurance

50,341

49,897

Other intangibles

2,892

3,650

Fair value of derivative instruments - asset

10,370

13,687

Deferred tax asset

15,199

17,339

Other assets

54,631

59,074




TOTAL ASSETS

$      3,025,724

$    2,975,321




LIABILITIES:



Deposits:



  Noninterest-bearing

$         532,776

$       523,784

  Interest-bearing

1,849,252

1,797,697

Total deposits

2,382,028

2,321,481

Borrowed funds

297,721

322,036

Accrued interest payable

4,693

4,298

Fair value of derivative instruments - liability

5,817

7,922

Other liabilities

35,731

39,918

TOTAL LIABILITIES

2,725,990

2,695,655

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 December 31, 2024, and 2023:      



   issued 5,207,577 at December 31, 2024 and 5,160,754 at December 31, 2023

5,208

5,161

Additional paid-in capital

144,984

143,233

Retained earnings

189,443

172,975

Accumulated other comprehensive loss

(23,521)

(24,911)

Treasury stock, at cost:  447,965 at December 31, 2024 and 453,760 shares 



  at December 31, 2023

(16,380)

(16,792)

TOTAL STOCKHOLDERS' EQUITY

299,734

279,666

TOTAL LIABILITIES AND



   STOCKHOLDERS' EQUITY

$      3,025,724

$    2,975,321

 

CITIZENS FINANCIAL SERVICES, INC.





CONSOLIDATED STATEMENT OF INCOME





(UNAUDITED)






Three Months Ended

Year  Ended


December 31,

December 31,

(in thousands, except share and per share data)

2024

2023

2024

2023

INTEREST INCOME:





Interest and fees on loans

$     36,630

$       35,637

$   142,688

$  116,075

Interest-bearing deposits with banks

156

274

851

736

Investment securities:





    Taxable

2,112

1,663

7,135

6,636

    Nontaxable

524

535

2,093

2,264

    Dividends

371

403

1,550

1,407

TOTAL INTEREST INCOME

39,793

38,512

154,317

127,118

INTEREST EXPENSE:





Deposits

13,875

12,180

52,326

31,699

Borrowed funds

3,045

4,477

15,536

15,159

TOTAL INTEREST EXPENSE

16,920

16,657

67,862

46,858

NET INTEREST INCOME

22,873

21,855

86,455

80,260

Provision for credit losses

-

200

2,587

937

Provision for credit losses - acquisition day 1 non-PCD

-

-

-

4,591

NET INTEREST INCOME AFTER





    PROVISION FOR CREDIT LOSSES

22,873

21,655

83,868

74,732

NON-INTEREST INCOME:





Service charges

1,356

1,443

5,749

5,639

Trust

187

181

816

764

Brokerage and insurance

608

495

2,381

1,924

Gains on loans sold

596

737

2,316

1,464

Equity security gains (losses), net

18

79

145

(144)

Available for sale security losses, net

-

-

-

(51)

Earnings on bank owned life insurance

350

313

1,684

1,254

Gain on sale of Braavo division

-

-

1,102

-

Other

224

241

1,208

755

TOTAL NON-INTEREST INCOME

3,339

3,489

15,401

11,605

NON-INTEREST EXPENSES:





Salaries and employee benefits

9,725

9,392

39,347

34,990

Occupancy 

1,208

1,253

5,013

4,123

Furniture and equipment

247

254

1,038

822

Professional fees

578

688

2,599

1,962

FDIC insurance expense

407

475

1,996

1,475

Pennsylvania shares tax

248

(310)

1,114

583

Amortization of intangibles

132

154

564

373

Software expenses

445

510

1,953

1,784

ORE (recovery) expenses

(34)

40

212

166

Merger and acquisition expenses

-

-

-

9,269

Other

3,712

3,464

11,750

9,275

TOTAL NON-INTEREST EXPENSES

16,668

15,920

65,586

64,822

Income before provision for income taxes

9,544

9,224

33,683

21,515

Provision for income tax expense 

1,561

1,684

5,865

3,704

NET INCOME

$       7,983

$         7,540

$     27,818

$    17,811






PER COMMON SHARE DATA:





Net Income - Basic

$          1.68

$           1.59

$          5.86

$        4.02

Net Income - Diluted

$          1.68

$           1.59

$          5.85

$        4.02

Cash Dividends Paid 

$       0.490

$         0.485

$       1.950

$      1.920






Number of shares used in computation - basic

4,750,062

4,746,719

4,750,185

4,429,162

Number of shares used in computation - diluted

4,752,505

4,746,720

4,755,066

4,429,162

 

CITIZENS FINANCIAL SERVICES, INC.






QUARTERLY CONDENSED, CONSOLIDATED INCOME STATEMENT INFORMATION





(UNAUDITED)






(in thousands, except per share data)


Three Months Ended,




Dec 31,

Sept 30,

June 30,

March 31,

Dec 31,


2024

2024

2024

2024

2023

Interest income

$     39,793

$      38,689

$      37,902

$      37,933

$      38,512

Interest expense

16,920

17,365

16,602

16,975

16,657

Net interest income

22,873

21,324

21,300

20,958

21,855

Provision (negative) for credit losses

-

(200)

2,002

785

200

Net interest income after provision (negative) for credit losses

22,873

21,524

19,298

20,173

21,655

Non-interest income

3,321

3,596

3,423

4,916

3,410

Investment securities  gains (losses), net

18

159

(87)

55

79

Non-interest expenses

16,668

16,029

16,246

16,643

15,920

Income before provision for income taxes

9,544

9,250

6,388

8,501

9,224

Provision for income tax expense

1,561

1,714

1,113

1,477

1,684

Net income 

$       7,983

$        7,536

$        5,275

$        7,024

$        7,540

Earnings Per Share - Basic

$         1.68

$          1.59

$          1.11

$          1.48

$          1.59

Earnings Per Share - Diluted

$         1.68

$          1.59

$          1.11

$          1.48

$          1.59

 

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 December 31,


2024

2023


Average


Average

Average


Average


Balance (1)

Interest

Rate

Balance (1)

Interest

Rate

(dollars in thousands)

$

$

%

$

$

%

ASSETS







Interest-bearing deposits at banks

17,680

126

2.84

18,507

239

5.12

Interest bearing time deposits at banks

3,820

30

3.12

4,410

35

3.06

Investment securities:







  Taxable

368,221

2,483

2.70

377,292

2,066

2.19

  Tax-exempt (3)

103,375

664

2.57

108,353

678

2.50

Investment securities

471,596

3,147

2.67

485,645

2,744

2.26

Loans: (2)(3)(4)







  Residential mortgage loans

355,108

5,146

5.77

358,735

5,120

5.66

  Construction loans

173,427

3,276

7.51

197,420

3,653

7.34

  Commercial Loans

1,248,114

19,716

6.28

1,208,249

19,482

6.40

  Agricultural Loans

355,557

5,275

5.90

339,720

4,302

5.02

  Loans to state & political subdivisions

55,333

555

3.99

56,710

562

3.93

  Other loans

139,567

2,770

7.90

130,468

2,627

7.99

  Loans, net of discount (2)(3)(4)

2,327,106

36,738

6.28

2,291,302

35,746

6.19

Total interest-earning assets

2,820,202

40,041

5.65

2,799,864

38,764

5.49

Cash and due from banks

9,088



11,215



Bank premises and equipment

21,291



21,446



Other assets

186,815



191,231



Total non-interest earning assets

217,194



223,892



Total assets

3,037,396



3,023,756



LIABILITIES AND STOCKHOLDERS' EQUITY







Interest-bearing liabilities:







  NOW accounts

759,604

4,648

2.43

816,067

5,344

2.60

  Savings accounts

289,798

367

0.50

312,575

417

0.53

  Money market accounts

422,624

3,351

3.15

400,971

2,910

2.88

  Certificates of deposit

544,320

5,509

4.03

401,932

3,509

3.46

Total interest-bearing deposits

2,016,346

13,875

2.74

1,931,545

12,180

2.50

Other borrowed funds

273,604

3,045

4.43

351,492

4,477

5.05

Total interest-bearing liabilities

2,289,950

16,920

2.94

2,283,037

16,657

2.89

Demand deposits

395,714



389,927



Other liabilities

29,545



46,888



Total non-interest-bearing liabilities

425,259



436,815



Stockholders' equity

322,187



303,904



Total liabilities & stockholders' equity

3,037,396



3,023,756



Net interest income


23,121



22,107


Net interest spread (5)



2.71 %



2.60 %

Net interest income as a percentage







  of average interest-earning assets



3.26 %



3.13 %

Ratio of interest-earning assets







  to interest-bearing liabilities



123 %



123 %








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

(UNAUDITED)



Year Ended December 31,


2024

2023


Average


Average

Average


Average


Balance (1)

Interest

Rate

Balance (1)

Interest

Rate

(dollars in thousands)

$

$

%

$

$

%

ASSETS







Interest-bearing deposits at banks

28,264

730

2.58

24,470

572

2.34

Interest bearing time deposits at banks

3,878

121

3.09

5,255

164

3.10

Investment securities:







  Taxable

359,724

8,685

2.41

383,241

8,043

2.10

  Tax-exempt (3)

105,141

2,650

2.52

112,806

2,866

2.54

Investment securities

464,865

11,335

2.44

496,047

10,909

2.20

Loans: (2)(3)(4)







  Residential mortgage loans

356,292

20,758

5.83

290,971

15,918

5.47

  Construction loans

182,714

13,607

7.45

135,315

9,485

7.01

  Commercial Loans

1,242,182

78,912

6.35

1,081,488

64,561

5.97

  Agricultural Loans

350,588

18,978

5.41

342,980

17,061

4.97

  Loans to state & political subdivisions

55,919

2,213

3.96

59,308

2,299

3.88

  Other loans

107,656

8,654

8.04

94,519

7,204

7.62

  Loans, net of discount (2)(3)(4)

2,295,351

143,122

6.24

2,004,581

116,528

5.81

Total interest-earning assets

2,792,358

155,308

5.56

2,530,353

128,173

5.07

Cash and due from banks

9,306



9,341



Bank premises and equipment

21,124



19,871



Other assets

183,674



139,474



Total non-interest earning assets

214,104



168,686



Total assets

3,006,462



2,699,039



LIABILITIES AND STOCKHOLDERS' EQUITY







Interest-bearing liabilities:







  NOW accounts

765,445

19,205

2.51

666,505

13,396

2.01

  Savings accounts

296,275

1,532

0.52

318,299

1,314

0.41

  Money market accounts

397,942

12,482

3.14

364,385

8,713

2.39

  Certificates of deposit

481,862

19,107

3.97

328,553

8,276

2.52

Total interest-bearing deposits

1,941,524

52,326

2.70

1,677,742

31,699

1.89

Other borrowed funds

323,409

15,536

4.80

326,577

15,159

4.64

Total interest-bearing liabilities

2,264,933

67,862

3.00

2,004,319

46,858

2.34

Demand deposits

385,702



382,979



Other liabilities

40,593



38,419



Total non-interest-bearing liabilities

426,295



421,398



Stockholders' equity

315,234



273,322



Total liabilities & stockholders' equity

3,006,462



2,699,039



Net interest income


87,446



81,315


Net interest spread (5)



2.56 %



2.73 %

Net interest income as a percentage







  of average interest-earning assets



3.13 %



3.21 %

Ratio of interest-earning assets







  to interest-bearing liabilities



123 %



126 %








(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)







December 31,

September 30,

June 30,

March 31,

December 31,


2024

2024

2024

2024

2023

Real estate:






  Residential

$         351,398

$        353,254

$       354,588

$      357,779

$      359,990

  Commercial

1,121,435

1,110,548

1,110,269

1,115,900

1,092,887

  Agricultural

327,722

331,734

327,057

318,413

314,802

  Construction

164,326

178,706

180,157

184,506

195,826

Consumer

133,207

143,064

70,542

53,101

61,316

Other commercial loans

131,310

134,285

130,851

129,438

136,168

Other agricultural loans

29,662

24,537

26,247

24,345

30,673

State & political subdivision loans

54,182

54,874

56,005

56,177

57,174

Total loans

2,313,242

2,331,002

2,255,716

2,239,659

2,248,836

Less: allowance for credit losses - loans

21,699

21,695

22,797

21,598

21,153

Net loans

$     2,291,543

$    2,309,307

$   2,232,919

$   2,218,061

$   2,227,683







Past due and non-performing assets












Total Loans past due 30-89 days and still accruing

$             8,015

$            7,423

$         20,652

$          6,311

$        10,457







Non-accrual loans

$           25,701

$          20,858

$         14,949

$        14,693

$        12,187

Loans past due 90 days or more and accruing

276

701

285

820

516

Non-performing loans

$           25,977

$          21,559

$         15,234

$        15,513

$        12,703

Other real estate owned

2,635

2,486

2,690

200

474

Total Non-performing assets

$           28,612

$          24,045

$         17,924

$        15,713

$        13,177




















Three Months Ended

Analysis of the Allowance for Credit Losses - Loans

December 31,

September 30,

June 30,

March 31,

December 31,

(In Thousands)

2024

2024

2024

2024

2023

Balance, beginning of period

$           21,695

$          22,797

$         21,598

$        21,153

$        21,455

Charge-offs

(105)

(1,212)

(682)

(674)

(510)

Recoveries

19

10

7

7

8

Net (charge-offs) recoveries

(86)

(1,202)

(675)

(667)

(502)

Provision for credit losses - loans

90

100

1,874

1,112

200

Balance, end of period

$           21,699

$          21,695

$         22,797

$        21,598

$        21,153

 

CITIZENS FINANCIAL SERVICES, INC.





Reconciliation of GAAP and Non-GAAP Financial Measures

(UNAUDITED)





(Dollars in thousands, except per share data)











As of 




December 31,




2024

2023



Tangible Equity





Stockholders Equity - GAAP

$         299,734

$           279,666



Intangible Assets

(88,650)

(89,408)



Tangible Equity - Non-GAAP

211,084

190,258



Shares outstanding adjusted for June 2024 stock Dividend

4,759,612

4,753,583



Tangible Book value per share - Non-GAAP

$              44.35

$               40.02









As of 




December 31,




2024

2023



Tangible Equity per share





Stockholders Equity per share - GAAP

$              62.97

$               58.83



Adjustment for intangible assets

(18.62)

(18.81)



Tangible Book value per share - Non-GAAP

$              44.35

$               40.02














For the Three Months Ended

For the Year Ended


December 31,

December 31,


2024

2023

2024

2023

Return on Average Assets Excluding Accumulated Other Comprehensive Loss (AOCL)





Average Stockholders Equity - GAAP

$      3,015,467

$        2,987,084

$           2,981,322

$      2,666,841

Average AOCL

(21,929)

(36,672)

(25,140)

(32,198)

Average Assets, Excluding AOCL - Non-GAAP

3,037,396

3,023,756

3,006,462

2,699,039

Net Income - GAAP

$              7,983

$               7,540

$                27,818

$           17,811

Annualized Return on Average Assets-GAAP

1.06 %

1.01 %

0.93 %

0.67 %

Annualized Return on Average Assets, Excluding AOCL - Non-GAAP

1.05 %

1.00 %

0.93 %

0.66 %







For the Three Months Ended

For the Year Ended


December 31,

December 31,


2024

2023

2024

2023

Return on Average Equity Excluding Accumulated Other Comprehensive Loss (AOCL)





Average Stockholders Equity - GAAP

$         300,258

$           267,232

$              290,094

$         241,124

Average AOCL

(21,929)

(36,672)

(25,140)

(32,198)

Average Stockholder's Equity, Excluding AOCL - Non-GAAP

322,187

303,904

315,234

273,322

Net Income - GAAP

$              7,983

$               7,540

$                27,818

$           17,811

Annualized Return on Average Stockholder's Equity-GAAP

10.63 %

11.29 %

9.59 %

7.39 %

Annualized Return on Average Stockholder's Equity, Excluding AOCL - Non-GAAP

9.91 %

9.93 %

8.82 %

6.52 %







For the Three Months Ended

For the Year Ended


December 31,

December 31,


2024

2023

2024

2023

Return on Average Tangible Equity





Average Stockholders Equity - GAAP

$         300,258

$           267,232

$              290,094

$         241,124

Average Intangible Assets

(88,757)

(88,536)

(89,031)

(62,993)

Average Tangible Equity - Non-GAAP

211,501

178,696

201,063

178,131

Net Income - GAAP

$              7,983

$               7,540

$                27,818

$           17,811

Annualized Return on Average Tangible Equity Non-GAAP

15.10 %

16.88 %

13.84 %

10.00 %







For the Three Months Ended

For the Year Ended


December 31,

December 31,


2024

2023

2024

2023

Return on Average Assets and Equity Excluding sale of Braavo assets, net of legal fees, provision associated with Braavo loans remaining after sale  and  merger and acquisition costs





Net Income - GAAP

$              7,983

$               7,540

$                27,818

$           17,811

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

-

-

(712)

-

After tax provisision associatated with Braavo loans remaining after sale

-

-

1,427

-

After tax provision for credit losses - acquisition day 1 non-PCD

-

-

-

3,627

After Tax merger and acquisition costs

-

-

-

7,513

Net Income excluding merger and acquisition costs - Non-GAAP

$              7,983

$               7,540

$                28,533

$           28,951

Average Assets

3,015,467

2,987,084

2,981,322

2,666,841

Annualized Return on Average assets, Excluding sale of Braavo assets, net of legal fees, provision associated with Braavo loans remaining after sale, net of tax  and  merger and acquisition costs - Non-GAAP

1.06 %

1.01 %

0.96 %

1.09 %






Average Stockholders Equity - GAAP

$         300,258

$           267,232

$              290,094

$         241,124

Annualized Return on Average stockholders equity, Excluding sale of Braavo assets, net of legal fees, provision associated with Braavo loans remaining after sale, net of tax  and  merger and acquisition costs - Non-GAAP

10.63 %

11.29 %

9.84 %

12.01 %






Average Tangible Equity - Non-GAAP

211,501

178,696

201,063

178,131

Annualized Return on Average Tangible Equity Excluding sale of Braavo assets, net of legal fees, provision associated with Braavo loans remaining after sale, net of tax,   and  merger and acquisition costs - Non-GAAP

15.10 %

16.88 %

14.19 %

16.25 %







For the Three Months Ended

For the Year Ended


December 31,

December 31,


2024

2023

2024

2023

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





Net Income - GAAP

$              7,983

$               7,540

$                27,818

$           17,811

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

-

-

(712)

-

After tax provisision associatated with Braavo loans remaining after sale

-

-

1,427

-

After tax provision for credit losses - acquisition day 1 non-PCD

-

-

-

3,627

After Tax merger and acquisition costs

-

-

-

7,513

Net income excluding one time items - Non-GAAP

$              7,983

$               7,540

$                28,533

$           28,951

Number of shares used in computation - basic

4,750,062

4,746,719

4,750,185

4,429,162

Basic and Diluted earnings per share, Excluding sale of Braavo assets, net of legal fees, provision associated with Braavo loans remaining after sale, net of tax,   and  merger and acquisition costs - Non-GAAP

$                1.68

$                 1.59

$                     6.01

$               6.54












For the Three Months Ended

For the Year Ended


December 31,

December 31,

Reconciliation of net interest income on fully taxable equivalent basis

2024

2023

2024

2023

Total interest income

$           39,793

$             38,512

$              154,317

$         127,118

Total interest expense

16,920

16,657

67,862

46,858

Net interest income

22,873

21,855

86,455

80,260

Tax equivalent adjustment

248

252

991

1,055

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

$           23,121

$             22,107

$                87,446

$           81,315

 

Cision View original content:https://www.prnewswire.com/news-releases/citizens-financial-services-inc-reports-unaudited-full-year-and-fourth-quarter-2024-financial-results-302364859.html

SOURCE Citizens Financial Services, Inc.

FAQ

What was CZFS's net income for full-year 2024?

Citizens Financial Services reported net income of $27.8 million for full-year 2024, a 56.2% increase from 2023.

How much did CZFS receive from the Braavo division sale in 2024?

CZFS received approximately $7.2 million from the sale of Braavo division assets, generating a pre-tax gain of $1.1 million.

What was CZFS's return on equity for 2024?

CZFS's return on equity for 2024 was 9.59%, compared to 7.39% in 2023.

How much did CZFS increase its quarterly dividend in 2024?

CZFS increased its quarterly dividend by 1.0% to $0.49 per share, compared to $0.485 in the previous year.

What was CZFS's total asset value as of December 31, 2024?

CZFS reported total assets of $3.03 billion as of December 31, 2024.

Stock CZFS logo
Citizens Financial Services, Inc.

NASDAQ:CZFS

CZFS Rankings

#3599 Ranked by Market Cap
#1016 Ranked by Dividends

CZFS Latest News

Oct 30, 2024
CITIZENS FINANCIAL SERVICES, INC. REPORTS UNAUDITED THIRD QUARTER 2024 FINANCIAL RESULTS
Jul 30, 2024
CITIZENS FINANCIAL SERVICES, INC. REPORTS UNAUDITED SECOND QUARTER 2024 FINANCIAL RESULT
Apr 25, 2024
CITIZENS FINANCIAL SERVICES, INC. REPORTS UNAUDITED FIRST QUARTER 2024 FINANCIAL RESULTS
Jan 30, 2024
/C O R R E C T I O N -- CITIZENS FINANCIAL SERVICES, INC./
Jan 30, 2024
CITIZENS FINANCIAL SERVICES, INC. REPORTS UNAUDITED FULL YEAR AND FOURTH QUARTER 2023 FINANCIAL RESULTS

CZFS Stock Data

292.49M
4.44M
6.33%
25.51%
0.9%
Banks - Regional
State Commercial Banks
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United States of America
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