Business
Citizens Financial Services, Inc. Reports Unaudited Second Quarter 2020 Financial Results
MANSFIELD, Pa., July 27, 2020 /PRNewswire/ -- Citizens Financial Services, Inc. (OTC Pink: CZFS), parent company of First Citizens Community Bank, released
About this update from Citizens Financial Services, Inc.
[{"type":"text","content":"MANSFIELD, Pa., July 27, 2020 /PRNewswire/ -- Citizens Financial Services, Inc. (OTC Pink: CZFS), parent company of First Citizens Community Bank, released today its unaudited consolidated financial results for the three and six months ended June 30, 2020.\nHighlights\nThe acquisition of MidCoast Community Bancorp, Inc. was completed in the second quarter of 2020. The acquisition included loans with a fair value of $223.3 million and deposits with a fair value of $208.8 million. Based on the closing price on April 17th, the deal valuation was approximately $26.9 million. Merger and acquisitions costs for 2020 total $2.2 million through June 30, 2020. Net income for the first six months of 2020 was $9.9 million, which is 6.7% higher than 2019's net income through June 30, 2019. The effective tax rate for the first six months of 2020 was 16.5% compared to 15.9% in the comparable period in 2019. Net income was $5.3 million for the three months ended June 30, 2020, which is 10.2% higher than the net income for 2019's comparable period. The effective tax rate for the three months ended June 30, 2020 was 16.5% compared to 16.1% in the comparable period in 2019. Net interest income before the provision for loan losses was $29.2 million for the six months ended June 30, 2020, an increase of $4.9 million, or 20.3%, over the same period a year ago. Return on average equity for the three and six months (annualized) ended June 30, 2020 was 12.28% and 11.90% compared to 13.09% and 12.61% for the three and six months (annualized) ended June 30, 2019. Return on average tangible equity for the three and six months (annualized) ended June 30, 2020 was 14.98% and 14.31% compared to 15.72% and 15.17% for the three and six months (annualized) ended June 30, 2019. (1) Return on average assets for the three and six months (annualized) ended June 30, 2020 was 1.25% and 1.24% compared to 1.34% and 1.28% for the three and six months (annualized) ended June 30, 2019.Covid 19 pandemic response and loan profile\nThe Company participated in the Paycheck Protection Program (PPP) for loans provided under the auspices of the Small Business Administration (SBA). As of June 30, 2020, the Company had outstanding $53.7 million and 570 loans that were issued through the program. The loans earn interest at 1% and will generate fee income of approximately $2.1 millio...