Citizens Financial Services, Inc. Reports Unaudited First Quarter 2021 Financial Results

About this update from Citizens Financial Services, Inc.

MANSFIELD, Pa. , April 23, 2021 /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, 2021 . Highlights The financial results of the Company continue to benefit from the acquisition of MidCoast Community Bancorp, Inc. that closed in the second quarter of 2020. Net income was $8.5 million for the three months ended March 31, 2021 , which is 86.8% higher than the net income for 2020's comparable period. The effective tax rate for the three months ended March 31, 2021 was 16.0% compared to 16.4% in the comparable period in 2020. Net interest income before the provision for loan losses was $16.4 million for the three months ended March 31, 2021 , an increase of $3.6 million , or 27.6%, over the same period a year ago. Non-performing assets decreased $215,000 from year end and $1,644,000 since March 31, 2020 and total $12,833,000 as of March 31, 2021 . As a percent of loans, non-performing assets totaled 0.92%, 0.93% and 1.33% as of March 31, 2021 , December 31, 2020 and March 31, 2020 . Return on average equity for the three months (annualized) ended March 31, 2021 was 17.25% compared to 11.48% for the three months (annualized) ended March 31, 2020 . Return on average tangible equity for the three months (annualized) ended March 31, 2021 was 20.74% compared to 13.59% for the three months (annualized) ended March 31, 2020 (non-GAAP). (1) Return on average assets for the three months (annualized) ended March 31, 2021 was 1.77% compared to 1.24% for the three months (annualized) ended March 31, 2020 . If the life insurance proceeds on a former employees are excluded, the return on average equity and average assets would be 14.90% and 1.52%, respectively, for three months (annualized) ended March 31, 2021 (non-GAAP). (1) Covid 19 pandemic response and loan profile During 2021, the Company continued to participate in the Paycheck Protection Program (PPP) for loans provided under the auspices of the Small Business Administration (SBA). From January 1, 2021 to March 31, 2021 , we issued 227 loans with aggregate balances of $18.5 million . As of March 31, 2021 , 99 loans that were issued under this program in 2020 remain outstanding and have a balance of $9.8 million . The loans earn interest at 1% per annum and the processing fee paid by the SBA will be accreted into income over the life of the loans. The SBA has issued guidance for forgiveness with a streamlined approach for loans of $150,000 or less. Of the PPP loans outstanding, 278 loans, or 85.3% of the remaining PPP loans, had an original balance less than $150,000 . The outstanding balance for these 278 loans as of March 31, 2021 was approximately $10.3 million . Under our COVID loan modification program, during 2021 we provided relief to 19 customers with outstanding balances of $26.7 million , which includes residential, commercial and agricultural customers. As of March 31, 2021 , there were 4 commercial loans outstanding with aggregate balances of $13.9 million that are under modified terms through August 2021 . 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, restaurants, and amusement/theme parks represent a higher level of credit risk. At March 31, 2021 , the Company had limited loan concentrations to these industries as follows: Hotels/Motels - $59.3 million or 4.2% of outstanding loans Restaurants - $26.8 million or 1.9% of outstanding loans Amusement/Theme parks - $13.9 million , or 1.0% of outstanding loans Agricultural lending continues to be an area of emphasis with the Bank. As of March 31, 2021 , agricultural lending comprised approximately $356.7 million , or 25.4% of total loans. Agriculture was significantly impacted in the early part of the pandemic as dairy farmers were forced to dump milk, and milk futures remain extremely volatile. Other producers experienced difficulties in getting livestock to market and reduced proceeds from sales as well as difficulty in obtaining supplies. First Quarter of 2021 Compared to the First Quarter of 2020 For the three months ended March 31, 2021 , net income totaled $8,463,000 which compares to net income of $4,531,000 for the comparable period of 2020, an increase of $3,932,000 or 86.8%. Basic earnings per share of $2.16 for the three months ended March 31, 2021 compares to $1.27 for the 2020 comparable period. Annualized return on equity for the three months ended March 31, 2021 and 2020 was 17.25% and 11.48%, while annualized return on assets was 1.77% and 1.24%, respectively. Net interest income before the provision for loan losses for the three months ended March 31, 2021 totaled $16,441,000 compared to $12,890,000 for the three months ended March 31, 2020 , resulting in an increase of $3,551,000 , or 27.6%. Average interest earning assets increased $434.2 million for the three months ended March 31, 2021 compared to the same period last year as a result of the acquisition and organic loan and deposit growth. Average loans increased $291.3 million while average investment securities increased $58.5 million . The tax effected net interest margin for the three months ended March 31, 2021 was 3.73% compared to 3.84% for the same period last year, which was impacted by the decrease in the average yield on interest earning assets of 41 basis points to 4.15%. The provision for loan losses for the three months ended March 31, 2021 was $650,000 , a $250,000 increase to the comparable period in 2020. The increase in the provision is attributable to loans maturing that were acquired as part of the MidCoast acquisition, which were refinanced with the Company and are subject to the Company's allowance calculation. Total non-interest income was $4,235,000 for the three months ended March 31, 2021 , which is $2,384,000 more than the comparable period last year. The primary drivers were the earnings of bank owned life insurance, which increased $1,155,000 as the result of the passing of two former employees, gains on loans sold which increased $336,000 and an increase in equity security gains of $441,000 as a result of market performance. Other income increased due to $228,000 due to fee income on derivative transactions for customers. Total non-interest expenses for the three months ended March 31, 2021 totaled $9,947,000 compared to $8,921,000 for the same period last year, which is an increase of $1,026,000 , or 11.5%. The increase was due to the additional salary and benefit costs of employees added as a result of the MidCoast acquisition, as well as merit increases for employees, and occupancy expenses associated with the new branches acquired as part of the merger. The decrease in merger and acquisition expenses is due to expenses incurred in the first quarter of 2020 related to the MidCoast acquisition. The provision for income taxes increased $727,000 when comparing the three months ended March 31, 2021 to the same period in 2020 as a result of an increase in income before income tax of $4,659,000 . The effective tax rate was 16.0% and 16.4% for the three months ended March 31, 2021 and 2020, respectively. It should be noted the earnings on bank owned life insurance are exempt from Federal income tax. Balance Sheet and Other Information: At March 31, 2021 , total assets were $2.00 billion compared to $1.89 billion at December 31, 2020 and $1.45 billion at March 31, 2020 . The loan to deposit ratio as of March 31, 2021 was 83.23% compared to 88.45% as of December 31, 2020 and 90.75% as of March 31, 2020 . Available for sale securities of $322.0 million at March 31, 2021 increased $26.8 million from December 31, 2020 and $64.2 million from March 31, 2020 . The yield on the investment portfolio decreased from 2.82% to 2.18% on a tax equivalent basis due to securities purchased at a discount that were called in the first quarter of 2020 and purchases made in a lower rate environment in the last three quarters of 2020 and the first quarter of 2021. Net loans as of March 31, 2021 totaled $1.39 billion and decreased $1.6 million from December 31, 2020 as a result of PPP forgiveness and a decrease in student loan balances. The allowance for loan losses totaled $16,560,000 at March 31, 2021 which is an increase of $745,000 from December 31, 2020 . The increase is due to recording a provision for loan losses of $650,000 and recoveries of $99,000 , offset by charge-offs of $4,000 . The allowance as a percent of total loans was 1.18% as of March 31, 2021 and 1.13% as of December 31, 2020 . Deposits increased $98.6 million from December 31, 2020 , to $1.69 billion at March 31, 2021 , primarily due to customers holding more cash due to the pandemic and government stimulus funds provided to customers. Brokered CD's decreased $4.8 million . Non-interest-bearing deposits increased $32.7 million due to the PPP program and additional cash holdings by customers. Stockholders' equity totaled $198.8 million at March 31, 2021 , compared to $194.3 million at December 31, 2020 , an increase of $4.5 million . The increase was attributable to net income for the three months ended March 31, 2021 totaling $8.5 million , offset by cash dividends for the first quarter totaling $1.8 million and net treasury stock activity of $510,000 . As a result of changes in interest rates impacting the fair value of investment securities, the unrealized gain on available for sale investment securities, net of tax, decreased $1.6 million from December 31, 2020 . Dividend Declared On March 2, 2021 , the Board of Directors declared a cash dividend of $0.465 per share, which was paid on March 26, 2021 to shareholders of record at the close of business on March 12, 2021 . This quarterly cash dividend is an increase of 3.31% over the regular cash dividend of $0.450 per share declared one year ago, as adjusted for the 1% stock dividend declared in June 2020 . Citizens Financial Services, Inc. paid an additional $0.10 special dividend in the first quarter of 2020. Citizens Financial Services, Inc. has nearly 1,900 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 GAAP and 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 , 2021 2020 Income and Performance Ratios Net Income $ 8,463 $ 4,531 Return on average assets (annualized) 1.77% 1.24% Return on average equity (annualized) 17.25% 11.48% Return on average tangible equity (annualized) (a) 20.74% 13.59% Net interest margin (tax equivalent)(a) 3.73% 3.84% Earnings per share - basic (b) $ 2.16 $ 1.27 Earnings per share - diluted (b) $ 2.16 $ 1.27 Cash dividends paid per share (b) $ 0.465 $ 0.549 Number of shares used in computation - basic (b) 3,909,887 3,553,818 Number of shares used in computation - diluted (b) 3,909,887 3,553,818 Asset quality Allowance for loan and lease losses $ 16,560 $ 14,247 Non-performing assets $ 12,878 $ 14,522 Allowance for loan and lease losses/total loans 1.18% 1.30% Non-performing assets to total loans 0.92% 1.33% Annualized net (recoveries) charge-offs to total loans (0.03)% 0.00% Equity Book value per share (b) $ 50.55 $ 44.30 Tangible Book value per share (a) (b) $ 42.10 $ 37.36 Market Value (Last reported trade of month) $ 59.65 $ 49.00 Common shares outstanding 3,912,679 3,506,009 Other Average Full Time Equivalent Employees 297.4 255.3 Loan to Deposit Ratio 83.23% 90.75% Trust assets under management $ 150,871 $ 110,419 Brokerage assets under management $ 252,888 $ 200,145 Balance Sheet Highlights March 31 , December 31 , March 31 , 2021 2020 2020 Assets $ 1,995,610 $ 1,891,674 $ 1,464,729 Investment securities 324,085 297,120 258,437 Loans (net of unearned income) 1,404,401 1,405,281 1,093,720 Allowance for loan losses 16,560 15,815 14,247 Deposits 1,687,470 1,588,858 1,205,150 Stockholders' Equity 198,807 194,259 159,923 (a) See reconcilation of GAAP and 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) 2021 2020 2020 ASSETS: Cash and due from banks: Noninterest-bearing $ 18,164 $ 16,374 $ 20,663 Interest-bearing 132,664 52,333 858 Total cash and cash equivalents 150,828 68,707 21,521 Interest bearing time deposits with other banks 13,509 13,758 14,506 Equity securities 2,118 1,931 649 Available-for-sale securities 321,967 295,189 257,788 Loans held for sale 9,946 14,640 2,006 Loans (net of allowance for loan losses: $16,560 at March 31, 2021 ; $15,815 at December 31, 2020 and $14,247 at March 31, 2020 ) 1,387,841 1,389,466 1,079,473 Premises and equipment 17,450 16,948 16,222 Accrued interest receivable 5,572 5,998 4,587 Goodwill 31,376 31,376 23,296 Bank owned life insurance 30,190 32,589 28,284 Other intangibles 1,696 1,668 1,294 Other assets 23,117 19,404 15,103 TOTAL ASSETS $ 1,995,610 $ 1,891,674 $ 1,464,729 LIABILITIES: Deposits: Noninterest-bearing $ 336,438 $ 303,762 $ 204,489 Interest-bearing 1,351,032 1,285,096 1,000,661 Total deposits 1,687,470 1,588,858 1,205,150 Borrowed funds 86,171 88,838 83,563 Accrued interest payable 913 1,017 906 Other liabilities 22,249 18,702 15,187 TOTAL LIABILITIES 1,796,803 1,697,415 1,304,806 STOCKHOLDERS' EQUITY: Preferred Stock $1.00 par value; authorized 3,000,000 shares; none issued in 2021 or 2020 - - - Common stock $1.00 par value; authorized 25,000,000 shares at March 31, 2021 , December 31, 2020 and March 31, 2020 : issued 4,350,342 at March 31, 2021 and December 31, 2020 and 3,938,668 at March 31, 2020 4,350 4,350 3,939 Additional paid-in capital 75,908 75,908 55,129 Retained earnings 133,270 126,627 113,374 Accumulated other comprehensive income (loss) 1,002 2,587 2,918 Treasury stock, at cost: 437,663 at March 31, 2021 and 428,492 shares at December 31, 2020 and 413,607 shares at March 31, 2020 (15,723) (15,213) (15,437) TOTAL STOCKHOLDERS' EQUITY 198,807 194,259 159,923 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,995,610 $ 1,891,674 $ 1,464,729 CITIZENS FINANCIAL SERVICES, INC. CONSOLIDATED STATEMENT OF INCOME (UNAUDITED) Three Months Ended March 31 , (in thousands, except per share data) 2021 2019 INTEREST INCOME: Interest and fees on loans $ 16,694 $ 13,638 Interest-bearing deposits with banks 106 95 Investment securities: Taxable 850 1,107 Nontaxable 544 389 Dividends 101 110 TOTAL INTEREST INCOME 18,295 15,339 INTEREST EXPENSE: Deposits 1,598 1,987 Borrowed funds 256 462 TOTAL INTEREST EXPENSE 1,854 2,449 NET INTEREST INCOME 16,441 12,890 Provision for loan losses 650 400 NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 15,791 12,490 NON-INTEREST INCOME: Service charges 1,106 1,081 Trust 307 198 Brokerage and insurance 376 340 Gains on loans sold 503 167 Equity security gains (losses), net 187 (254) Available for sale security gains (losses), net 50 - Earnings on bank owned life insurance 1,315 156 Other 391 163 TOTAL NON-INTEREST INCOME 4,235 1,851 NON-INTEREST EXPENSES: Salaries and employee benefits 6,263 5,414 Occupancy 783 526 Furniture and equipment 143 131 Professional fees 448 325 FDIC insurance expense 129 71 Pennsylvania shares tax 339 275 Amortization of intangibles 49 50 Merger and acquisition - 376 Software expenses 313 247 ORE expenses 86 32 Other 1,394 1,474 TOTAL NON-INTEREST EXPENSES 9,947 8,921 Income before provision for income taxes 10,079 5,420 Provision for income taxes 1,616 889 NET INCOME $ 8,463 $ 4,531 PER COMMON SHARE DATA: Net Income - Basic $ 2.16 $ 1.27 Net Income - Diluted $ 2.16 $ 1.27 Cash Dividends Paid $ 0.465 $ 0.549 Number of shares used in computation - basic 3,909,887 3,553,818 Number of shares used in computation - diluted 3,909,887 3,553,818 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 , 2021 2020 2020 2020 2020 Interest income $ 18,295 $ 18,411 $ 18,386 $ 18,160 $ 15,339 Interest expense 1,854 1,866 1,916 1,874 2,449 Net interest income 16,441 16,545 16,470 16,286 12,890 Provision for loan losses 650 900 550 550 400 Net interest income after provision for loan losses 15,791 15,645 15,920 15,736 12,490 Non-interest income 3,998 3,726 3,386 1,941 2,105 Investment securities gains (losses), net 237 238 152 128 (254) Non-interest expenses 9,947 10,821 9,692 11,413 8,921 Income before provision for income taxes 10,079 8,788 9,766 6,392 5,420 Provision for income taxes 1,616 1,561 1,759 1,054 889 Net income $ 8,463 $ 7,227 $ 8,007 $ 5,338 $ 4,531 Earnings Per Share Basic $ 2.16 $ 1.85 $ 2.04 $ 1.39 $ 1.27 Earnings Per Share Diluted $ 2.16 $ 1.85 $ 2.04 $ 1.39 $ 1.27 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 , 2021 2020 Average Average Average Average Balance (1) Interest Rate Balance (1) Interest Rate (dollars in thousands) $ $ % $ $ % ASSETS Interest-bearing deposits at banks 94,523 19 0.08 9,538 3 0.17 Interest bearing time deposits at banks 13,730 87 2.57 14,272 92 2.59 Investment securities: Taxable 200,492 951 1.90 179,893 1,217 2.71 Tax-exempt (3) 100,422 689 2.74 62,555 493 3.15 Investment securities 300,914 1,640 2.18 242,448 1,710 2.82 Loans: (2)(3)(4) Residential mortgage loans 203,941 2,553 5.08 215,838 2,843 5.30 Construction loans 38,314 410 4.34 17,726 223 5.06 Commercial Loans 713,900 9,063 5.15 415,199 5,534 5.36 Agricultural Loans 358,565 3,830 4.33 360,179 4,112 4.59 Loans to state & political subdivisions 62,516 598 3.87 94,122 939 4.01 Other loans 26,605 348 5.30 9,461 171 7.27 Loans, net of discount (2)(3)(4) 1,403,841 16,802 4.85 1,112,525 13,822 5.00 Total interest-earning assets 1,813,008 18,548 4.15 1,378,783 15,627 4.56 Cash and due from banks 6,377 6,263 Bank premises and equipment 17,003 16,062 Other assets 80,953 56,983 Total non-interest earning assets 104,333 79,308 Total assets 1,917,341 1,458,091 LIABILITIES AND STOCKHOLDERS' EQUITY Interest-bearing liabilities: NOW accounts 422,135 320 0.31 332,068 437 0.53 Savings accounts 268,252 89 0.13 225,985 184 0.33 Money market accounts 238,788 176 0.30 174,294 393 0.91 Certificates of deposit 380,791 1,013 1.08 261,278 973 1.50 Total interest-bearing deposits 1,309,966 1,598 0.49 993,625 1,987 0.93 Other borrowed funds 86,226 256 1.20 93,849 462 1.98 Total interest-bearing liabilities 1,396,192 1,854 0.54 1,087,474 2,449 0.91 Demand deposits 306,377 196,604 Other liabilities 18,582 16,082 Total non-interest-bearing liabilities 324,959 212,686 Stockholders' equity 196,190 157,931 Total liabilities & stockholders' equity 1,917,341 1,458,091 Net interest income 16,694 13,178 Net interest spread (5) 3.61% 3.65% Net interest income as a percentage of average interest-earning assets 3.73% 3.84% Ratio of interest-earning assets to interest-bearing liabilities 130% 127% (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 GAAP and 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 , 2021 2020 2020 2020 2020 Real estate: Residential $ 203,273 $ 201,911 $ 208,084 $ 210,789 $ 216,179 Commercial 605,547 596,255 535,456 513,598 338,490 Agricultural 315,313 315,158 310,702 313,136 300,606 Construction 42,651 35,404 28,656 31,744 17,926 Consumer 26,181 30,277 30,625 30,973 9,533 Other commercial loans 109,168 114,169 129,731 132,503 71,038 Other agricultural loans 41,378 48,779 40,790 44,912 46,170 State & political subdivision loans 60,890 63,328 81,835 85,978 93,778 Total loans 1,404,401 1,405,281 1,365,879 1,363,633 1,093,720 Less: allowance for loan losses 16,560 15,815 15,169 14,827 14,247 Net loans $ 1,387,841 $ 1,389,466 $ 1,350,710 $ 1,348,806 $ 1,079,473 Past due and non-performing assets Total Loans past due 30-89 days and still accruing $ 2,383 $ 4,120 $ 3,449 $ 4,986 $ 3,159 Non-accrual loans $ 10,680 $ 10,732 $ 11,711 $ 10,693 $ 11,302 Loans past due 90 days or more and accruing 478 525 1,194 654 164 Non-performing loans $ 11,158 $ 11,257 $ 12,905 $ 11,347 $ 11,466 OREO 1,720 1,836 2,726 2,853 3,056 Total Non-performing assets $ 12,878 $ 13,093 $ 15,631 $ 14,200 $ 14,522 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) 2021 2020 2020 2020 2020 Balance, beginning of period $ 15,815 $ 15,169 $ 14,827 $ 14,247 $ 13,845 Charge-offs (4) (276) (237) (10) (9) Recoveries 99 22 29 40 11 Net (charge-offs) recoveries 95 (254) (208) 30 2 Provision for loan losses 650 900 550 550 400 Balance, end of period $ 16,560 $ 15,815 $ 15,169 $ 14,827 $ 14,247 CITIZENS FINANCIAL SERVICES, INC. Reconciliation of GAAP and Non-GAAP Financial Measures (UNAUDITED) (Dollars in thousands, except per share data) As of March 31 2021 2020 Tangible Equity Stockholders Equity - GAAP $ 198,807 $ 159,923 Accumulated other comprehensive (gain) loss (1,002) (2,918) Intangible Assets (33,072) (24,590) Tangible Equity - Non-GAAP 164,733 132,415 Shares outstanding adjusted for June 2020 stock Dividend 3,912,679 3,544,327 Tangible Book value per share (a) $ 42.10 $ 37.36 As of March 31 2021 2020 Tangible Equity per share Stockholders Equity per share - GAAP $ 50.81 $ 45.12 Adjustments for accumulated other comprehensive loss (0.26) (0.82) Book value per share 50.55 44.30 Adjustments for intangible assets (8.45) (6.94) Tangible Book value per share - Non-GAAP $ 42.10 $ 37.36 For the Three Months Ended March 31 2021 2020 Return on Average Tangible Equity Average Stockholders Equity - GAAP $ 198,617 $ 157,905 Average Accumulated Other Comprehensive Loss 2,427 (26) Average Intangible Assets 32,998 24,603 Average Tangible Equity - Non-GAAP 163,192 133,328 Net Income $ 8,463 $ 4,531 Annualized Return on Average Tangible Equity 20.74% 13.59% For the Three Months March 31, 2021 For the Three Months March 31 , 2020 Return on Average Assets and Equity Excluding Merger and Acquisition Costs and BOLI Death Benefits Net Income $ 8,463 $ 4,531 BOLI death benefits 1,155 - After Tax merger and acquisition costs - 339 Net Income excluding merger and acquisition costs $ 7,308 $ 4,870 Average Assets 1,917,341 1,458,091 Annualized Return on Average stockholders equity, excluding Merger and Acquisition costs 1.52% 1.34% Average Stockholders Equity $ 196,190 $ 157,931 Annualized Return on Average stockholders equity, excluding Merger andAcquisition costs and death benefits 14.90% 12.33% For the Three Months Ended March 31 , Reconciliation of net interest income on fully taxable equivalent basis 2021 2020 Total interest income $ 18,295 $ 15,339 Total interest expense 1,854 2,449 Net interest income 16,441 12,890 Tax equivalent adjustment 253 288 Net interest income (fully taxable equivalent) $ 16,694 $ 13,178 View original content: http://www.prnewswire.com/news-releases/citizens-financial-services-inc-reports-unaudited-first-quarter-2021-financial-results-301276148.html SOURCE Citizens Financial Services, Inc.

View stock analysis, news, and events for Citizens Financial Services, Inc.