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CITIZENS FINANCIAL SERVICES, INC. REPORTS UNAUDITED SECOND QUARTER 2023 FINANCIAL RESULTS
MANSFIELD, Pa., July 31, 2023 /PRNewswire/ -- Citizens Financial Services, Inc. (Nasdaq: CZFS), parent company of First Citizens Community Bank, released
About this update from Citizens Financial Services, Inc.
[{"type":"text","content":"MANSFIELD, Pa., July 31, 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 and six months ended June 30, 2023.\nHighlights\nThe acquisition of HV Bancorp, Inc.(\"HVB\") was completed on June 16, 2023. The acquisition included available for sale investments of $79.2 million, loans with a fair value of $486.1 million and deposits with a fair value of $533.4 million. Based on the closing price on June 16, the deal valuation was approximately $76.7 million. Merger and acquisitions costs for 2023 total $8.6 million through June 30, 2023. The provision for credit losses on non-purchase credit deteriorated loans (the \"NPC Provision\") was $4.6 million.Net income for the first six months of 2023 was $2.7 million, which was $10.9 million, or 80.0% less than 2022's net income through June 30, 2022 due to the one-time merger and acquisition costs and the NPC Provision. The effective tax rate for the first six months of 2023 was 13.4% compared to 17.8% in the comparable period in 2022.Net loss was $4.1 million for the three months ended June 30, 2023, which was $11.1 million or 160.0% less than the net income for 2022's comparable period. The effective tax rate for the three months ended June 30, 2023 was 22.3% compared to 17.7% in the comparable period in 2022.Net interest income before the provision for credit losses was $36.0 million for the six months ended June 30, 2023, an increase of $2.0 million, or 5.9%, over the same period a year ago.Return on average equity for the three and six months (annualized) ended June 30, 2023 was (6.62%) and 2.22% compared to 12.49% and 12.48% for the three and six months (annualized) ended June 30, 2022. If the one-time costs associated with the acquisition and the NPC Provision are excluded, the return on average equity for the three and six months (annualized) ended June 30, 2023 would have been 10.03% and 10.92%, respectively (1).Return on average tangible equity for the three and six months (annualized) ended June 30, 2023 was (7.92%) and 2.62% compared to 14.68% and 14.69% for the three and six months (annualized) ended June 30, 2022. (1) If the one-time costs associated with the acquisition and the NPC Provision are excluded, the return on average tangib...