Citizens Financial Services, Inc. Reports Unaudited First Quarter 2020 Financial Results

About this update from Citizens Financial Services, Inc.

MANSFIELD, Pa. , April 24, 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 months ended March 31, 2020 . Highlights The acquisition of MidCoast Community Bancorp, Inc. was completed effective April 17, 2020 and the merger of computer and operating systems occurred on April 18 th. The acquisition included $231.3 million of loans and $207.8 million of deposits. Based on the closing price on April 17 th, the deal valuation was approximately $27.0 million . Merger and acquisitions costs for 2020 totaled $376,000 as of March 31, 2020 . Net income was $4.5 million for the three months ended March 31, 2020 , which is 2.9% higher than the net income for 2019's comparable period. The effective tax rate for the first three months of 2020 was 16.4% compared to 15.7% in the comparable period in 2019. Net interest income before the provision for loan losses was $12.9 million for the three months ended March 31, 2020 , an increase of $975,000 , or 8.2%, over the same period a year ago. Return on average equity for the three months (annualized) ended March 31, 2020 was 11.48% compared to 12.12% for the three months (annualized) ended March 31, 2019 . Excluding merger and acquisitions costs, the annualized return on average equity for the three months ended March 31, 2020 would have been 12.34%. (1) Return on average tangible equity for the three months (annualized) ended March 31, 2020 was 13.59% compared to 14.62% for the three months (annualized) ended March 31, 2019 . (1) Return on average assets for the three months (annualized) ended March 31, 2020 was 1.24% compared to 1.22% for the three months (annualized) ended March 31, 2019 . Excluding merger and acquisitions costs, the annualized return on average assets for the three months ended March 31, 2020 would have been 1.34%. (1) Covid 19 pandemic response and loan profile The Company participated in the Paycheck Protection Program (PPP) for loans provided under the auspices of the Small Business Administration (SBA). As of April 16 th, the date where Phase I funds were allocated under the PPP program, the Company received approval from the SBA for 422 loans totaling $47.2 million , which will earn interest at 1% per annum for up to 24 months and will generate fee income of approximately $2.0 million . We will also be participating in Phase II of the PPP program. A portion of these loans may be forgiven by the SBA depending on the customers usage of the proceeds. Additionally, as support for our communities, we created a payment relief program, which includes the following: Waiver of late fees for March, April and May Interest-only payment options for consumers and businesses for 60 to 90 days. Deferral of principal payments for consumers and businesses in certain industries for 60-120 days. Waiver of CD early withdrawal penalties through June 1 . Through April 23 , we have provided relief to customers with outstanding balances of $32.5 million , or approximately 3.0% of total loans, which includes residential and commercial customers. The Company tracks industry concentrations to identify risks that could lead to additional credit exposure. As a result of the Covid 19 pandemic, the Company has determined that Hotels/Motels and restaurants represent a higher level of credit risk. At March 31, 2020 , the Company has limited loan concentrations to these industries as follows: Hotels/Motels - $18.9 million or 1.7% of outstanding loans, and 87.6% pass rated Restaurants - $13.1 million or 1.2% of outstanding loans, and 86.8% pass rated Our agricultural relationships are also being strained by the pandemic as demand for certain products has declined and processing plant issues have resulted in further strains on our customers as a result of the pandemic. Agricultural lending comprises $346.8 million , or 31.7% of outstanding balances as of March 31, 2020 . Three Months Ended March 31, 2020 Compared to March 31, 2019 For the three months ended March 31, 2020 , net income totaled $4,531,000 which compares to net income of $4,405,000 for the first three months of 2019, an increase of $126,000 or 2.9%. Basic earnings per share of $1.29 for first three months of 2020 compares to $1.25 for the 2019 comparable period. Annualized return on equity for the three months ended March 31, 2020 and 2019 was 11.48% and 12.12%, while annualized return on assets was 1.24% and 1.22%, respectively. If merger and acquisition costs are excluded, the annualized return on average equity and average assets would be 12.34% and 1.34%, respectively. (1) Net interest income before the provision for loan loss for the three months ended March 31, 2020 totaled $12,890,000 compared to $11,915,000 for the three months ended March 31, 2019 , resulting in an increase of $975,000 , or 8.2%. Average interest earning assets increased $11.3 million for the three months ended March 31, 2020 compared to the same period last year. Average loans increased $21.4 million while average investment securities decreased $9.6 million . The tax effected net interest margin for the three months ended March 31, 2020 was 3.84% compared to 3.62% for the same period last year, which was impacted by the decrease in the average cost on interest bearing liabilities of 23 bps, to 0.91%. The provision for loan losses for the three months ended March 31, 2020 and 2019 was $400,000 . While loans decreased in 2020 compared to positive net loan growth in the first quarter of 2019, the provision for 2020 was based on the potential impact the Covid-19 pandemic may have on the local and national economies. Total non-interest income was $1,851,000 for the three months ended March 31, 2020 , which is $182,000 less than for the comparable period last year. The primary driver was a decrease of $254,000 in the value of equity securities during the first quarter, compared to an increase of $11,000 in the first quarter of 2019. The decrease in our equity portfolio was consistent with the decrease experienced by the stock market as a result of the pandemic. Total non-interest expenses for the three months ended March 31, 2020 totaled $8,921,000 compared to $8,322,000 for the same period last year, which is an increase of $599,000 , or 7.2%. Salaries and benefits increased $385,000 primarily due to merit increases and increased health care costs. Expenses associated with MidCoast acquisition accounted for $376,000 of the increase in expenses in the first quarter. Other expenses increased $156,000 , which was primarily due to fraudulent charges on customer accounts. The provision for income taxes increased $68,000 when comparing the three months ended March 31, 2020 to the same period in 2019 as a result of an increase in income before income tax of $194,000 and certain merger and acquisition expenses being non-deductible for tax purposes. Balance Sheet and Other Information: At March 31, 2020 , total assets were $1.45 billion , compared to $1.47 billion at December 31, 2019 and $1.45 billion at March 31, 2019 . Available for sale securities of $257.8 million at March 31, 2020 increased $17.1 million from December 31, 2019 and $13.4 million from March 31, 2019 . The yield on the investment portfolio increased from 2.69% to 2.82% on a tax equivalent basis. Net loans as of March 31, 2020 totaled $1.08 billion and decreased $22.3 million from December 31, 2019 after several large pay-offs and increased $1.6 million from March 31, 2019 . The decrease in loans was driven by the early pay-offs and limited demand in the first quarter. The allowance for loan losses totaled $14,247,000 at March 31, 2020 which is an increase of $402,000 from December 31, 2019 . The increase is due to recording a provision for loan losses of $400,000 and recoveries of $11,000 , offset by charge-offs of $9,000 . The allowance as a percent of total loans was 1.30% as of March 31, 2020 and 1.24% as of December 31, 2019 . Deposits decreased $6.0 million from December 31, 2019 , to $1.21 billion at March 31, 2020 , primarily due a decrease in brokered CD's of $10.2 million . Borrowed funds decreased $1.6 million from December 31, 2019 to $83.6 million at March 31, 2020 . Non-interest-bearing deposits increased $696,000 from December 31, 2019 to $204.5 million at March 31, 2020 . Stockholders' equity totaled $159.9 million at March 31, 2020 , compared to $154.8 million at December 31, 2019 , an increase of $5.1 million . The increase was attributable to net income for the three months ended March 31, 2020 totaling $4.5 million , offset by cash dividends for the first quarter totaling $2.0 million and net treasury stock activity of $1.0 million . As a result of decreases in market interest rates impacting the fair value of investment securities, the unrealized gain on available for sale investment securities, net of tax, improved $3.4 million from December 31, 2019 . Dividend Declared On March 3, 2020 , the Board of Directors declared a cash dividend of $0.55 per share, which included a $0.10 special dividend and was paid on March 27, 2020 to shareholders of record at the close of business on March 13, 2020 . The quarterly cash dividend is an increase of 26.0% over the regular cash dividend of $0.441 per share declared one year ago, as adjusted for the 1% stock dividend declared in June 2019 . Citizens Financial Services, Inc. has nearly 2,000 shareholders, the majority of whom reside in markets where its offices are located. Note: This press release may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These statements are not historical facts; rather, they are statements based on the Company's current expectations regarding its business strategies and their intended results and its future performance. Forward-looking statements are preceded by terms such as "expects," "believes," "anticipates," "intends" and similar expressions. Forward-looking statements are not guarantees of future performance. Numerous risks and uncertainties could cause or contribute to the Company's actual results, performance and achievements to be materially different from those expressed or implied by the forward-looking statements. Factors that may cause or contribute to these differences include, without limitation, changes in general economic conditions, including changes in market interest rates and changes in monetary and fiscal policies of the federal government; legislative and regulatory changes; and other factors disclosed periodically in the Company's filings with the Securities and Exchange Commission . Because of the risks and uncertainties inherent in forward-looking statements, readers are cautioned not to place undue reliance on them, whether included in this press release or made elsewhere periodically by the Company or on its behalf. The Company assumes no obligation to update any forward-looking statements except as may be required by applicable law or regulation. (1) See reconciliation of non-gaap measures at the end of the press release CITIZENS FINANCIAL SERVICES, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (UNAUDITED) (Dollars in thousands, except per share data) As of or For The Three Months Ended March 31 , 2020 2019 Income and Performance Ratios Net Income $ 4,531 $ 4,405 Return on average assets (annualized) 1.24% 1.22% Return on average equity (annualized) 11.48% 12.12% Return on average tangible equity (annualized) (a) 13.59% 14.62% Net interest margin (tax equivalent)(a) 3.84% 3.62% Earnings per share - basic (b) $ 1.29 $ 1.25 Earnings per share - diluted (b) $ 1.29 $ 1.25 Cash dividends paid per share (b) $ 0.550 $ 0.441 Asset quality Allowance for loan and lease losses $ 14,247 $ 13,084 Non-performing assets $ 14,522 $ 16,059 Allowance for loan and lease losses/total loans 1.30% 1.20% Non-performing assets to total loans 1.33% 1.47% Annualized net charge-offs to total loans 0.00% 0.07% Equity Book value per share (b) $ 44.78 $ 41.23 Tangible Book value per share (a) (b) $ 37.77 $ 34.20 Market Value (Last reported trade of month) $ 49.00 $ 64.00 Common shares outstanding 3,506,009 3,498,834 Number of shares used in computation - basic (b) 3,515,500 3,528,466 Number of shares used in computation - diluted (b) 3,515,500 3,528,466 Other Average Full Time Equivalent Employees 255.3 261.8 Loan to Deposit Ratio 90.75% 92.32% Trust assets under management $ 110,419 $ 125,342 Brokerage assets under management $ 200,145 $ 196,840 Balance Sheet Highlights March 31 , December 31 , March 31 , 2020 2019 2019 Assets $ 1,464,729 $ 1,466,339 $ 1,448,054 Investment securities 258,437 241,407 244,964 Loans (net of unearned income) 1,093,720 1,115,569 1,090,917 Allowance for loan losses 14,247 13,845 13,084 Deposits 1,205,150 1,211,118 1,181,654 Stockholders' Equity 159,923 154,774 142,845 (a) See reconcilation of Non-GAAP measures at the end of the press release (b) Prior period amounts were adjusted to reflect stock dividends. CITIZENS FINANCIAL SERVICES, INC. CONSOLIDATED BALANCE SHEET (UNAUDITED) March 31 , December 31 , March 31 , (in thousands except share data) 2020 2019 2019 ASSETS: Cash and due from banks: Noninterest-bearing $ 20,663 $ 17,727 $ 16,384 Interest-bearing 858 793 1,450 Total cash and cash equivalents 21,521 18,520 17,834 Interest bearing time deposits with other banks 14,506 14,256 15,498 Equity securities 649 701 527 Available-for-sale securities 257,788 240,706 244,437 Loans held for sale 2,006 815 182 Loans (net of allowance for loan losses: $14,247 at March 31, 2020 ; $13,845 at December 31, 2019 and $13,084 at March 31, 2019 ) 1,079,473 1,101,724 1,077,833 Premises and equipment 16,222 15,933 16,177 Accrued interest receivable 4,587 4,555 4,769 Goodwill 23,296 23,296 23,296 Bank owned life insurance 28,284 28,128 27,656 Other intangibles 1,294 1,346 1,547 Other assets 15,103 16,359 18,298 TOTAL ASSETS $ 1,464,729 $ 1,466,339 $ 1,448,054 LIABILITIES: Deposits: Noninterest-bearing $ 204,489 $ 203,793 $ 184,988 Interest-bearing 1,000,661 1,007,325 996,666 Total deposits 1,205,150 1,211,118 1,181,654 Borrowed funds 83,563 85,117 108,263 Accrued interest payable 906 1,088 1,092 Other liabilities 15,187 14,242 14,200 TOTAL LIABILITIES 1,304,806 1,311,565 1,305,209 STOCKHOLDERS' EQUITY: Preferred Stock $1.00 par value; authorized 3,000,000 shares; none issued in 2020 or 2019 - - - Common stock $1.00 par value; authorized 25,000,000 shares at March 31, 2019 , December 31, 2019 and March 31, 2019 : issued 3,938,668 at March 31, 2019 and December 31, 2019 and 3,904,212 at March 31, 2019 3,939 3,939 3,904 Additional paid-in capital 55,129 55,089 53,102 Retained earnings 113,374 110,800 102,574 Accumulated other comprehensive income (loss) 2,918 (629) (2,825) Treasury stock, at cost: 432,659 at March 31, 2020 and 413,607 shares at December 31, 2019 and 405,378 shares at March 31, 2019 (15,437) (14,425) (13,910) TOTAL STOCKHOLDERS' EQUITY 159,923 154,774 142,845 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,464,729 $ 1,466,339 $ 1,448,054 CITIZENS FINANCIAL SERVICES, INC. CONSOLIDATED STATEMENT OF INCOME (UNAUDITED) Three Months Ended March 31 , (in thousands, except per share data) 2020 2019 INTEREST INCOME: Interest and fees on loans $ 13,638 $ 13,314 Interest-bearing deposits with banks 95 104 Investment securities: Taxable 1,107 1,108 Nontaxable 389 357 Dividends 110 134 TOTAL INTEREST INCOME 15,339 15,017 INTEREST EXPENSE: Deposits 1,987 2,314 Borrowed funds 462 788 TOTAL INTEREST EXPENSE 2,449 3,102 NET INTEREST INCOME 12,890 11,915 Provision for loan losses 400 400 NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 12,490 11,515 NON-INTEREST INCOME: Service charges 1,081 1,099 Trust 198 232 Brokerage and insurance 340 293 Gains on loans sold 167 99 Equity security gains (losses), net (254) 11 Earnings on bank owned life insurance 156 151 Other 163 148 TOTAL NON-INTEREST INCOME 1,851 2,033 NON-INTEREST EXPENSES: Salaries and employee benefits 5,414 5,029 Occupancy 526 592 Furniture and equipment 131 155 Professional fees 325 442 FDIC insurance expense 71 111 Pennsylvania shares tax 275 275 Amortization of intangibles 50 66 Merger and acquisition 376 - Software expenses 247 227 ORE expenses 32 107 Other 1,474 1,318 TOTAL NON-INTEREST EXPENSES 8,921 8,322 Income before provision for income taxes 5,420 5,226 Provision for income taxes 889 821 NET INCOME $ 4,531 $ 4,405 PER COMMON SHARE DATA: Net Income - Basic $ 1.29 $ 1.25 Net Income - Diluted $ 1.29 $ 1.25 Cash Dividends Paid $ 0.550 $ 0.441 Number of shares used in computation - basic 3,515,500 3,528,466 Number of shares used in computation - diluted 3,515,500 3,528,466 CITIZENS FINANCIAL SERVICES, INC. QUARTERLY CONDENSED, CONSOLIDATED INCOME STATEMENT INFORMATION (UNAUDITED) (in thousands, except share data) Three Months Ended, March 31 , Dec 31 , Sept 30 , June 30 , March 31 , 2020 2019 2019 2019 2019 Interest income $ 15,339 $ 15,587 $ 15,874 $ 15,502 $ 15,017 Interest expense 2,449 2,797 2,975 3,166 3,102 Net interest income 12,890 12,790 12,899 12,336 11,915 Provision for loan losses 400 525 400 350 400 Net interest income after provision for loan losses 12,490 12,265 12,499 11,986 11,515 Non-interest income 2,105 2,083 2,140 1,997 2,022 Investment securities gains (losses), net (254) 66 37 30 11 Non-interest expenses 8,921 8,368 8,414 8,237 8,322 Income before provision for income taxes 5,420 6,046 6,262 5,776 5,226 Provision for income taxes 889 1,003 1,066 930 821 Net income $ 4,531 $ 5,043 $ 5,196 $ 4,846 $ 4,405 Earnings Per Share Basic $ 1.29 $ 1.43 $ 1.48 $ 1.38 $ 1.25 Earnings Per Share Diluted $ 1.29 $ 1.43 $ 1.48 $ 1.38 $ 1.25 CITIZENS FINANCIAL SERVICES, INC. CONSOLIDATED AVERAGE BALANCES, INTEREST, YIELDS AND RATES, AND NET INTEREST MARGIN ON A FULLY TAX-EQUIVALENT BASIS (UNAUDITED) Three Months Ended March 31 , 2020 2019 Average Average Average Average Balance (1) Interest Rate Balance (1) Interest Rate (dollars in thousands) $ $ % $ $ % ASSETS Interest-bearing deposits at banks 9,538 3 0.17 8,759 7 0.32 Interest bearing time deposits at banks 14,272 92 2.59 15,498 97 2.54 Investment securities 242,448 1,710 2.82 252,053 1,693 2.69 Loans: (2)(3)(4) Residential mortgage loans 215,838 2,843 5.30 215,670 2,825 5.31 Construction loans 17,726 223 5.06 28,439 357 5.09 Commercial Loans 415,199 5,534 5.36 401,813 5,423 5.47 Agricultural Loans 360,179 4,112 4.59 334,520 3,739 4.53 Loans to state & political subdivisions 94,122 939 4.01 100,922 978 3.93 Other loans 9,461 171 7.27 9,768 184 7.64 Loans, net of discount (2)(3)(4) 1,112,525 13,822 5.00 1,091,132 13,506 5.02 Total interest-earning assets 1,378,783 15,627 4.56 1,367,442 15,303 4.54 Cash and due from banks 6,263 6,741 Bank premises and equipment 16,062 16,263 Other assets 56,983 54,278 Total non-interest earning assets 79,308 77,282 Total assets 1,458,091 1,444,724 LIABILITIES AND STOCKHOLDERS' EQUITY Interest-bearing liabilities: NOW accounts 332,068 437 0.53 328,357 578 0.71 Savings accounts 225,985 184 0.33 211,149 184 0.35 Money market accounts 174,294 393 0.91 161,424 505 1.27 Certificates of deposit 261,278 973 1.50 293,385 1,047 1.45 Total interest-bearing deposits 993,625 1,987 0.80 994,315 2,314 0.94 Other borrowed funds 93,849 462 1.98 113,829 788 2.81 Total interest-bearing liabilities 1,087,474 2,449 0.91 1,108,144 3,102 1.14 Demand deposits 196,604 176,989 Other liabilities 16,082 14,199 Total non-interest-bearing liabilities 212,686 191,188 Stockholders' equity 157,931 145,392 Total liabilities & stockholders' equity 1,458,091 1,444,724 Net interest income 13,178 12,201 Net interest spread (5) 3.65% 3.40% Net interest income as a percentage of average interest-earning assets 3.84% 3.62% Ratio of interest-earning assets to interest-bearing liabilities 127% 123% (1) Averages are based on daily averages. (2) Includes loan origination and commitment fees. (3) Tax exempt interest revenue is shown on a tax equivalent basis for proper comparison using a statutory federal income tax rate of 21% for 2020 and 2019. See reconciliation of non-gaap measures at the end of the press release (4) Income on non-accrual loans is accounted for on a cash basis, and the loan balances are included in interest-earning assets. (5) Interest rate spread represents the difference between the average rate earned on interest-earning assets and the average rate paid on interest-bearing liabilities. CITIZENS FINANCIAL SERVICES, INC. CONSOLIDATED SUMMARY OF LOANS BY TYPE; NON-PERFORMING ASSETS; and ALLOWANCE FOR LOAN LOSSES (UNAUDITED) (Excludes Loans Held for Sale) (In Thousands) March 31 , December 31 , September 30 , June 30 , March 31 , 2020 2019 2019 2019 2019 Real estate: Residential $ 216,179 $ 217,088 $ 215,717 $ 213,014 $ 214,635 Commercial 338,490 342,023 349,269 347,430 334,371 Agricultural 300,606 311,464 305,948 294,332 295,547 Construction 17,926 15,519 11,448 20,950 18,611 Consumer 9,533 9,947 9,709 9,854 9,773 Other commercial loans 71,038 69,970 76,785 76,179 74,323 Other agricultural loans 46,170 55,112 50,334 41,689 43,245 State & political subdivision loans 93,778 94,446 95,824 96,174 100,412 Total loans 1,093,720 1,115,569 1,115,034 1,099,622 1,090,917 Less: allowance for loan losses 14,247 13,845 13,679 13,304 13,084 Net loans $ 1,079,473 $ 1,101,724 $ 1,101,355 $ 1,086,318 $ 1,077,833 Past due and non-performing assets Total Loans past due 30-89 days and still accruing $ 3,159 $ 2,711 $ 2,672 $ 2,599 $ 4,470 Non-accrual loans $ 11,302 $ 11,536 $ 13,223 $ 12,534 $ 11,700 Loans past due 90 days or more and accruing 164 487 103 175 64 Non-performing loans $ 11,466 $ 12,023 $ 13,326 $ 12,709 $ 11,764 OREO 3,056 3,404 3,497 3,853 4,295 Total Non-performing assets $ 14,522 $ 15,427 $ 16,823 $ 16,562 $ 16,059 3 Months 3 Months 3 Months 3 Months 3 Months Ended Ended Ended Ended Ended Analysis of the Allowance for loan Losses March 31 , December 31 , September 30 , June 30 , March 31 , (In Thousands) 2020 2019 2019 2019 2019 Balance, beginning of period $ 13,845 $ 13,679 $ 13,304 $ 13,084 $ 12,884 Charge-offs (9) (370) (34) (139) (214) Recoveries 11 11 9 9 14 Net (charge-offs) recoveries 2 (359) (25) (130) (200) Provision for loan losses 400 525 400 350 400 Balance, end of period $ 14,247 $ 13,845 $ 13,679 $ 13,304 $ 13,084 CITIZENS FINANCIAL SERVICES, INC. Reconciliation of GAAP and Non-GAAP Financial Measures (UNAUDITED) (Dollars in thousands, except per share data) As of March 31 2020 2019 Tangible Equity Stockholders Equity - GAAP $ 159,923 $ 142,845 Accumulated other comprehensive (gain) loss (2,918) 2,825 Intangible Assets (24,590) (24,843) Tangible Equity - Non-GAAP 132,415 120,827 Shares outstanding adjusted for June 2019 stock Dividend 3,506,009 3,533,290 Tangible Book value per share (a) $ 37.77 $ 34.20 As of March 31 2020 2019 Tangible Equity per share Stockholders Equity per share - GAAP $ 45.61 $ 40.43 Adjustments for accumulated other comprehensive loss (0.83) 0.80 Book value per share 44.78 41.23 Adjustments for intangible assets (7.01) (7.03) Tangible Book value per share - Non-GAAP $ 37.77 $ 34.20 For the Three Months Ended March 31 2020 2019 Return on Average Tangible Equity Average Stockholders Equity - GAAP $ 157,905 $ 141,578 Average Accumulated Other Comprehensive Loss (26) (3,814) Average Intangible Assets 24,603 24,872 Average Tangible Equity - Non-GAAP 133,328 120,520 Net Income $ 4,531 $ 4,405 Annualized Return on Average Tangible Equity 13.59% 14.62% For the Three Months Ended March 31 , 2020 Return on Average Assets and Equity Excluding Merger and Acquisition Costs Net Income $ 4,531 After Tax merger and acquisition costs 339 Net Income excluding merger and acquisition costs $ 4,870 Average Assets 1,458,091 Annualized Return on Average stockholders equity, excluding Merger and Acquisition costs 1.34% Average Stockholders Equity - GAAP $ 157,905 Annualized Return on Average stockholders equity, excluding Merger and Acquisition costs 12.34% For the Three Months Ended March 31 Reconciliation of net interest income on fully taxable equivalent basis 2020 2019 Total interest income $ 15,339 $ 15,017 Total interest expense 2,449 3,102 Net interest income 12,890 11,915 Tax equivalent adjustment 288 286 Net interest income (fully taxable equivalent) $ 13,178 $ 12,201 View original content: http://www.prnewswire.com/news-releases/citizens-financial-services-inc-reports-unaudited-first-quarter-2020-financial-results-301047094.html SOURCE Citizens Financial Services, Inc.

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