Citizens Financial Services, Inc. · NASDAQ:CZFS
Citizens Financial Services — Investor Presentation (April 2024)
31 slides from Citizens Financial Services's investor presentation, Apr 16, 2024
Slide 1: Citizens Financial Services, Inc.
Citizens Financial Services, Inc.
Slide 2: 2023 was a year of... GROWTH!
2023 was a year of... é GROWTH!
Slide 3: History of Successful Growth: Total Asset Growth since 2000
History of Successful Growth Total Asset Growth since 2000
Slide 4: HVB Acquisition
HVB Acquisition PAECCB Da rer crtne comment Fame EXPANDING OUR FOOTPRINT In June we completed the acquisition of Huntingdon Valley Bank, adding five new full-service community offices to our branch network. The expertise of our combined organizations has enabled FCCB to continue investing in the fut
Slide 5: Williamsport Entry
Williamsport Entry BRINGING COMMUNITY BANKING TO WILLIAMSPORT In December, we entered the Williamsport market with the opening of our 39th office! This move expanded our presence to both new and existing clients alike, as this market is a natural extension of our legacy footprint in the northern tie
Slide 6: 2023 Financial Performance
4 2023 Financial Performance
Slide 7: Efficiency Ratio History
Efficiency Ratio History Finished in the 93rd percentile compared to the CZFS peer group for 2023 without one-time costs. Finished in the 40th percentile compared to the CZFS peer group for 2023 with one-time costs.
Slide 8: Return on Equity History
Return on Equity History Finished in the 47th percentile compared to the CZFS peer group for 2023 without one-time costs. Finished in the 20th percentile compared to the CZFS peer group for 2023 with one-time costs.
Slide 9: Return on Assets History
Return on Assets History Finished in the 80th percentile compared to the CZFS peer group for 2023 without one-time costs. Finished in the 27th percentile compared to the CZFS peer group for 2023 with one-time costs.
Slide 10: Cash Dividends Paid History
Cash Dividends Paid History 1% stock dividend paid in 2019, 2020, 2021, 2022, and 2023
Slide 11: Outperforming the Competition
Outperforming the Competition (1) Please see appendix for non-GAAP reconciliations Note: Median values shown for peer groups Note: Financial data shown represents most recent quarter data reported as of December 31, 2023 CZFS is a top performer among its peers, with key metrics above peer medians PA
Slide 12: Key Financial Highlights
Key Financial Highlights Top Tier Consolidated (1) Please see appendix for non-GAAP reconciliations (2) 6/30/2023 profitability shown is core profitability financial data
Slide 13: Liquidity Position and Sources
Liquidity Position and Sources Note: Bank level regulatory data shown Liquidity Well-Managed to Cover Short-Term Needs
Slide 14: Non-GAAP Reconciliation
Non-GAAP Reconciliation alas in cheusands, excepe per share data For the Quarter nded, Net income Boll death benefits ‘After tax provision for credit losses - acquisition day 1 non-PCD ‘Aer taxmerger and acquistion costs Core net income Tass 311,628 0 ° 4,103 $12,729, Tas2016 312,638 0 ° ° $12,638 T
Slide 15: Non-GAAP Reconciliation
Non-GAAP Reconciliation For the Twelve Months Ended, Dollars in thousands 12/31/2007 12/31/2010 12/31/2013 12/31/2016 12/31/2019 Total common equity $48,528 $68,690 $92,056 $123,268 $154,774 Total intangible assets 8,893 10,288 10,256 22,501 24,001 Tangible common equity $39,635 $58,402 $81,800 $100
Slide 16: CZFS Common Stock
4 CZFS Common Stock
Slide 17: Timeline: Date, Event, Stock Price
Timeline Date Event Stock Price 10/19/2022 HVBC Deal Announced $65.35 02/15/2023 Shareholders Vote to Approve Deal $86.14 04/28/2023 Russell 3000 Rank Day $85.73 06/13/2023 HVBC Shareholder Consideration Election $85.30 06/16/2023 HVBC Deal Closes $86.67 06/23/2023 Russell 3000 Reconstitution $84.15
Slide 18: Stock Performance to Peer Group
Stock Performance to Peer Peer Group 2023Y Stock Performance (%) 4Q23 Stock Performance (%) 2023Y P/TBV (%) PA Nasdaq Listed Banks -5.6 25.8 121.1 MD, NY, PA Nasdaq Listed Banks $1.0B-$4.0B -1.7 26.5 126.9 PA Banks $1.0B - $3.0B -5.9 12.0 125.7 CZFS Proxy Peer Banks -5.4 23.3 128.9 CZFS -14.8 38.6 1
Slide 19: 2023 & 2024 Challenges
4 2023 & 2024 Challenges
Slide 20: Challenges: Turbulent Economy
Challenges Turbulent Economy The Fed managed to bring down inflation without the economy tumbling into a recession in 2023. Economic, political and global uncertainty will cloud 2024.
Slide 21: Challenges: Staffing Struggles
Challenges Staffing Struggles Staffing shortages were experienced by all businesses throughout 2023. FCCB will continue to focus on our “hire to retire” mentality to retain satisfied employees.
Slide 22: Challenges: Cybercrime
Challenges Cybercrime Our customers continue to be targets of financial crimes and fraud. FCCB is committed to help customers mitigate such risks.
Slide 23: Challenges: Regulatory Requirements
Challenges Regulatory Requirements There is a lot more coming at banks as an industry. Some bills, like ACRE, help to sustain and grow rural and ag communities, while other bills, like 1071, if passed, will have a negative effect on small businesses.
Slide 24: Challenges: Customer Preferences & Digital
Challenges Customer Preferences & Digital Customers expect more convenience and personalization from both digital banking experiences and traditional banking channels.
Slide 25: 2023 Stewardship
A 2023 Stewardship
Slide 26: Stewardship: Helping the Homeless
Stewardship Helping the Homeless As a result of our partnership with the FHLB and their Home4Good Program, 18 organizations will receive $1.4 million in grants to help those who are homeless.
Slide 27: Stewardship: Education
Stewardship Education In 2023 FCCB donated $345,000 to organizations that support education.
Slide 28: Stewardship: Food Insecurity
Stewardship Food Insecurity FCCB donated $25,000 to the Central PA Food Bank in 2023, bringing our total donation to $103,000 in just four years.
Slide 29: Stewardship: Fighting Cancer
Stewardship Fighting Cancer Our annual Cancer Classic golf tournament raised $20,000 in 2023 for a cumulative total of $301,000.
Slide 30: Stewardship: Sustaining Agriculture
Stewardship Sustaining Agriculture In the ag arena, FCCB funds the PA Farm Bureau’s Mobile Ag Lab, supports local 4-H and FFA at community fairs, and grants our annual Ag Scholarships.
Slide 31: Happy Retirement Gene Kosa
Happy Retirement Gene Kosa Served 23 years on the CZFS & FCCB Boards Chairman of the Audit Committee Member of Credit Committee Strong advocate of the ag industry
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