Citizens Financial Services, Inc. · NASDAQ:CZFS
Citizens Financial Services — Merger or Acquisition (September 2019)
15 slides from Citizens Financial Services's merger presentation, Sep 18, 2019
Slide 1: Transaction Announcement
1172120 1963086 8614264 217217217 242205203 To Acquire September 18, 2019 Transaction Announcement
Slide 2: Legal Disclosures
Legal Disclosures Forward-Looking StatementsThis investor presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act, relating to present or future trends or factors affecting the banking industry and, specifically, the financial operations,
Slide 3: Likeminded Institutions Coming Together
Likeminded Institutions Coming Together Community-Focused Institution Attentive to Customers Disciplined Lending Practices Entrepreneur Sales Culture Preferred Community Bank in its Markets Serving the Local Business Community Employer of Choice
Slide 4: Company Overviews
Note: Data as of 6/30/2019Source: S&P Global Market Intelligence Headquarters: Mansfield, PA Executive Management: Randy Black (CEO)Mick Jones (CFO) Offices: 28 Branches Employees: 257 Full Time Employees Assets: $1.45 billion Loans/Deposits (%): 92.9% LTM ROAA (%): 1.28% LTM ROAE (%): 12.73% LTM Ef
Slide 5: Transaction Overview
(1) Based upon a $61.00 price for CZFS common stock(2) Core deposits defined as total deposits less time deposits > $100kSource: S&P Global Market Intelligence Transaction Citizens Financial Services, Inc. (“CZFS”) will acquire 100% of MidCoast Community Bancorp, Inc.’s (“MDCT”) outstanding common s
Slide 6: Strategic Rationale
(1) Based upon a $61.00 price for CZFS common stock(2) Core deposits defined as total deposits less time deposits > $100kSource: S&P Global Market Intelligence StrategicRationale Creation of a multi-regional, dynamic franchise with strong financial performance in attractive marketsLargest OTC listed
Slide 7: Strengthening an Attractive Footprint
Source: S&P Global Market Intelligence Strengthening an Attractive Footprint MDCT LocationsCZFS Locations
Slide 8: Market Overview – Metro Wilmington
Market Overview – Metro Wilmington Most populous city in DelawarePopulation of approximately 71,000 peopleLocated within major Northeast CorridorPart of the Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA Fortune 500 Presence Higher Education Overview of Wilmington Key Economic Drivers Higher concen
Slide 9: Attractive Pro Forma Business Mix
Note: Bank level regulatory data shown; data as of June 30, 2019Source: S&P Global Market Intelligence; Company-provided documents Attractive Pro Forma Business Mix CZFS MDCT Pro Forma Loans Deposits
Slide 10: Key Transaction Impacts
(1) Estimated impacts provided solely for illustrative purposes(2) Tangible book value payback period calculated using the crossover method; inclusive of all one-time related transaction expensesSource: S&P Global Market Intelligence; Company-provided documents Estimated EPS Accretion >3% TBV Paybac
Slide 11: Prudently Structured Transaction
Prudently Structured Transaction Experience successfully executing and integrating strategic initiatives including acquisitionsCurrent CZFS management has experience successfully leading M&A transactions in recent history (acquired First National Bank of Fredericksburg in December 2015; acquired 1 S
Slide 12: Building Upon a Proven Track Record
* Include pro forma impact of acquisition of MidCoastSource: S&P Global Market Intelligence Building Upon a Proven Track Record Total Asset Growth Since 2000 ($000)
Slide 13: Building Shareholder Value
* 2Q2019 data annualized for EPS and dividendSource: S&P Global Market Intelligence Building Shareholder Value TBV/Share & EPS Growth Dividend History Annual Dividend/Share Stock Dividend 1.0% 1.0% 5.0% 1.0% 1.0% 5.0% 1.0%
Slide 14: Leadership's Track Record of Shareholder Value Creation
YTD Stock Performance 3-Year Stock Performance Leadership’s Track Record of Shareholder Value Creation Note: Market data as of market close on September 16, 2019Note: Total return assumes dividend reinvestment Source: S&P Global Market Intelligence Stock Price Under Current Management Current Manage
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