Citizens Financial Services, Inc. · NASDAQ:CZFS
Citizens Financial Services — Q3 2024 Earnings Presentation
21 slides from Citizens Financial Services's earnings presentation, October 2024
Slide 1: Investor Presentation 3rd Quarter 2024 Financial Information
INVESTOR PRESENTATION 3RD QUARTER 2024 FINANCIAL INFORMATION
Slide 2: Legal Disclosures: Forward-Looking Statements (p. 1 of 2)
Legal Disclosures Forward-Looking Statements (p. 1 of 2) We have made forward-looking statements in this document, and in documents that we incorporate by reference, that are subject to risks and uncertainties. Forward-looking statements include information concerning possible or assumed future resu
Slide 3: Legal Disclosures: Forward-Looking Statements (p. 2 of 2)
Legal Disclosures Forward-Looking Statements (p. 2 of 2) •The agricultural economy is subject to extreme swings in both the costs of resources and the prices received from the sale of products as a result of weather, government regulations, international trade agreements and consumer tastes, which c
Slide 4: About Citizens Financial Services, Inc.
ABOUT CITIZENS FINANCIAL SERVICES, INC. 4
Slide 5: Company Profile
Company Profile Financial Highlights Company Overview Headquarters Mansfield, PA Assets: $3.0B Founded 1872 Chartered 1932 Gross Loans: $2.3B Ticker NASDAQCM: CZFS (1) Market Cap $283.1 (2) Branches 44 Deposits: $2.4B (2) Employees 383 FT – 29 PT Institutional Ownership 23.67% YTD ROAA: 0.88% 3 Mo.
Slide 6: Financial Highlights
Financial Highlights September 30, 2024 2024Q3 vs. 2024Q2 MRQ – Highlights - YTD Profitability Balance Sheet Credit Diluted Diluted Net Interest Margin Total Assets NPAs / Assets Ratio EPS EPS 0.79% 3.09% $3.0B $1.59 $4.17 vs. 3.15% 2.7% Growth vs. 0.61% Net Net Core ROAA Core ROAA(1) Total Loans an
Slide 7: Experienced Leadership
Experienced Leadership Years of Executive Title Banking Joined FCCB Experience Randall E. Black Vice Chairman, President & CEO 31 1993 Stephen J. Guillaume Executive VP & CFO 14 2009 David Z. Richards Jr. Executive VP & Board Director 47 2017 LeeAnn Gephart Executive VP & Chief Banking Officer 18 20
Slide 8: Investment Highlights
Investment Highlights ▪ Long history of creating shareholder value and operating successfully ▪ Tenured management with strong track record of operating high value companies ▪ Experienced, disciplined and prudent acquirer ▪ Strong geographic diversification presents opportunities ▪ Steady record of
Slide 9: A Recognized High Performer
A Recognized High Performer For the past 16 years, Citizens Financial Services, Inc. has been ranked one of the top 100 best performing community banks in the nation with assets less than $2 billion. This ranking is based on a 3-year ROAE. Our 2012 performance ranked us as number ONE in the nation.
Slide 10: Business & Financial Highlights
BUSINESS & FINANCIAL HIGHLIGHTS 10
Slide 11: Key Financial Highlights
Key Financial Highlights Top Tier Consolidated In $000s except for per share data 2021Y 2022Y 2023Y YTD 9/30/2024 MRQ 9/30/2024 Balance Sheet Total Assets $2,143,863 $2,333,393 $2,975,321 $3,026,468 $3,026,468 Total Loans $1,446,087 $1,725,724 $2,258,215 $2,344,522 $2,344,522 Total Deposits $1,836,1
Slide 12: Liquidity Position and Sources
Liquidity Position and Sources Liquidity Well-Managed to Cover Short-Term Needs September 30, 2024 Liquidity Sources $ in Thousands Cash and Cash Equivalents $40,388 FHLB Borrowing Capacity Remaining 690,141 Brokered Deposits Capacity 462,999 FRB Borrowing Capacity 17,806 Total $1,211,334 Investment
Slide 13: Deposit Mix
Deposit Mix Deposit Mix Analysis Deposits by Category ($M's) $2,500 $572 $419 $452 $470 $2,000 $128 $89 $113 $278 $113 $330 $383 $390 $71 $388 $1,500 $74 $389 $402 $373 $1,000 $1,400 $1,354 $1,307 $1,395 $500 $1,076 $1,108 $0 12/31/2021 12/31/2022 12/31/2023 3/31/2024 6/30/2024 9/30/2024 MMDA & Savi
Slide 14: Loan Portfolio Mix
Loan Portfolio Mix Loan Type Analysis Loans Outstanding ($M's) $2,500 $199 $120 $111 $128 $2,000 $357 $355 $368 $373 $196 $185 $180 $178 $147 $1,500 $136 $138 $140 $140 $357 $77 $357 $81 $564 $564 $561 $94 $1,000 $569 $55 $73 $354 $133 $127 $127 $132 $357 $59 $500 $70 $746 $768 $763 $762 $634 $457 $
Slide 15: History of Successful Growth
History of Successful Growth Total Asset Growth since 2000 ($000) 3,500,000 $3,026,468 Date Transaction 10/27/2000 Acquired 6 Sovereign Bancorp, Inc. Branches 3,000,000 12/31/2003 $7.5M Debt Capital Raise 6/4/2004 Acquired 2 Legacy Bank Branches 12/17/2005 Acquired 1 Fulton Savings Bank Branch 2,500
Slide 16: Consistent & Attractive Returns: Historical Core ROAA & ROATCE
Consistent & Attractive Returns Historical Core ROAA & ROATCE 1.59% 1.75% 20.00% 1.34% 1.37% 1.40% 1.29% 1.29% 1.50% 1.06% 1.05% 1.06% 1.25% 18.62% 0.91% 1.00% 16.65% 0.75% 16.44% 16.24% 16.31% 15.00% 15.93% 0.50% 0.25% Core ROATCE (%) 13.87% Core ROAA (%) 13.60% 0.00% 12.79% 12.85% -0.25% 10.00% -0
Slide 17: History of Strong Asset Quality
History of Strong Asset Quality Historical NPAs/Assets Trends NCOs/Avg Loans: 0.02% 0.06% 0.03% 0.00% 0.03% 0.15% 1.58% 1.52% 1.00% 1.02% 0.94% 0.79% 0.79% 0.73% 0.66% 0.51% 0.41% 0.43% 0.43% 0.32% 2018 2019 2020 2021 2022 2023 YTD 9/30/2024 NPAs/Assets NPAs/Assets (excl. TDRs) 17
Slide 18: Successful Track Record of Prudent Acquisitions
Successful Track Record of Prudent Acquisitions CZFS Acquisitions since January 1, 2015 Transaction: Total Whole Bank FNB of MidCoast Community Acquisitions Since Fredericksburg Bancorp, Inc. HV Bancorp, Inc. January 1, 2015 Fredericksburg, Wilmington, Doylestown, Geography: -- PA DE PA Date Closed:
Slide 19: Appendix
APPENDIX FIRST CITIZENS COMMUNITY BANK
Slide 20: Non-GAAP Reconciliation – Tangible Book Value
Non-GAAP Reconciliation – Tangible Book Value For the Twelve Months Ended, For the Quarter Ended, Dollars in thousands 12/31/2021 12/31/2022 12/31/2023 12/31/2023 3/31/2024 6/30/2024 9/30/2024 Total common equity $212,492 $200,147 $279,666 $279,666 $282,674 $286,470 $298,654 Total intangible assets
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation For the Year to Dollars in thousands, except per share data For the Twelve Months Ended, Quarter Date 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023 9/30/2024 9/30/2024 Net income $11,626 $12,638 $13,025 $18,034 $19,490 $25,
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