Attached files
| file | filename |
|---|---|
| 8-K - THIRD QUARTER 2017 8-K - CITIZENS FINANCIAL SERVICES INC | thirdquarter2017.htm |
Contact: Kathleen Campbell, Marketing Director First Citizens Community Bank
570-662-0422 15 S. Main Street
570-662-8512 (fax) Mansfield, PA 16933
Citizens Financial Services, Inc. Reports unaudited Third quarter 2017 Financial Results
MANSFIELD, PENNSYLVANIA— October 26, 2017 – Citizens Financial Services, Inc. (OTC BB: CZFS), parent company of First Citizens Community Bank, released today its unaudited financial results for the three and nine months ended September 30, 2017.
Highlights
|
·
|
Year-to-date net income of $10.4 million, which is 10.1% higher than 2016's year-to-date income through September 30, 2016.
|
|
·
|
Net interest income before the provision for loan losses of $31.0 million for the nine months ended September 30, 2017, which is a $2.9 million, or 10.4%, increase over the same period a year ago.
|
|
·
|
Net loan growth of $106.0 million since December 31, 2016, or 13.4%.
|
|
·
|
Annualized return on average equity for the three and nine months ended September 30, 2017 was 11.16% and 10.81%, compared to 10.17% and 10.28% for the three and nine months ended September 30, 2016.
|
|
·
|
Annualized return on average assets for the three and nine months ended September 30, 2017 was 1.15% and 1.12%, compared to 1.06% for both the three and nine months ended September 30, 2016.
|
Nine Months Ended September 30, 2017 Compared to 2016
|
·
|
For the nine months ended September 30 2017, net income totaled $10,421,000 which compares to net income of $9,467,000 for the first nine months of 2016, an increase of $954,000 or 10.1%. Basic earnings per share of $2.99 for the first nine months of 2017 compares to $2.70 for the first nine months last year. Annualized return on equity for the nine months ended September 30, 2017 and 2016 was 10.81% and 10.28%, while annualized return on assets was 1.12% and 1.06%, respectively.
|
|
·
|
Net interest income before the provision for loan loss for the nine months ended September 30, 2017 totaled $31,018,000 compared to $28,088,000 for the nine months ended September 30, 2016, resulting in an increase of $2,930,000, or 10.4%. Average interest bearing assets increased $60.4 million for the nine months ended September 30, 2017 compared to the same period last year. Average loans increased $154.8 million while average investment securities decreased $75.9 million. The net interest margin for the nine months ended September 30, 2017 was 3.78% compared to 3.67% for the same period last year.
|
1
|
·
|
The provision for loan losses for the nine months ended September 30, 2017 was $1,740,000 compared to $770,000 for the nine months ended September 30, 2016, an increase of $970,000. The increased provision primarily reflects the loan growth experienced during 2017.
|
|
·
|
Total non-interest income was $5,844,000 for the nine months ended September 30, 2017, which is comparable to $5,807,000 for the same period last year. Increases in gains on loans sold, trust income, and investment securities gains were offset by decreases in brokerage and insurance.
|
|
·
|
Total non-interest expenses for the nine months ended September 30, 2017 totaled $21,604,000 compared to $21,413,000 for the same period last year, which is an increase of $191,000, or .9%. Salaries and benefits increased $813,000 primarily due to the increased costs associated with the additional lending teams hired during the second and third quarters of 2016, branch and loan production office expansion, and normal employee merit increases. Other expenses decreased $712,000, which was primarily due to a decrease in the number of customers' accounts being compromised and experiencing fraudulent charges.
|
Third Quarter of 2017 Compared to the Third Quarter of 2016
|
·
|
For the three months ended September 30, 2017, net income totaled $3,650,000 which compares to net income of $3,153,000 for the third quarter of 2016, an increase of $497,000, or 15.8%. Basic earnings per share of $1.05 for the third quarter of 2017 compares to $.90 for the third quarter last year. Annualized return on equity for the three months ended September 30 2017 and 2016 was 11.16% and 10.17%, while annualized return on assets was 1.15% and 1.06%, respectively.
|
|
·
|
Net interest income before the provision for loan loss was $10,617,000 compared to $9,712,000 for the third quarter last year, an increase of $905,000. Average interest bearing assets increased $80.1 million, including an increase in average loans of $168.5 million. This was offset by a decrease in average investment securities of $81.1 million. The net interest margin for the three months ended September 30, 2017 was 3.79% compared to 3.78% for the same period last year.
|
|
·
|
Total non-interest income was $1,921,000 for the three months ended September 30, 2017, which is essentially unchanged from $1,908,000 a year ago. Increases in gains on loans sold and trust income were offset by decreases in brokerage and insurance revenues.
|
|
·
|
Total non-interest expenses for the three months ended September 30, 2017 totaled $7,247,000 compared to $7,200,000 for the same period last year. Generally, decreases in most categories were offset by an increase in ORE expenses. This increase was primarily due to a recovery of ORE expenses in the third quarter last year.
|
2
Balance Sheet and Other Information:
|
·
|
At September 30, 2017, total assets were $1.27 billion which compares to $1.22 billion at December 31, 2016 and $1.20 billion at September 30, 2016.
|
|
·
|
Available for sale securities of $263.6 million at September 30, 2017 decreased $50.4 million from December 31, 2016 and $85.6 million from September 30, 2016. The decrease was utilized to fund growth in the loan portfolio, which is part of the balance sheet strategy to shift interest earning assets into loans.
|
|
·
|
Net loans as of September 30, 2017 totaled $896.7 million and have increased $106.0 million from December 31, 2016 and $153.6 million from September 30, 2016. The growth was driven primarily by agricultural real estate loans and other agricultural loans, which since December 31, 2016 have increased $94.1 million.
|
|
·
|
The allowance for loan losses totaled $10,447,000 at September 30, 2017 which is an increase of $1,561,000. The increase is due to recording a provision for loan loss of $1,740,000 and recoveries of $61,000, offset by charge-offs of $240,000. Annualized net charge-offs through September 30, 2017 was .03%. The allowance as a percent of total loans was 1.15% as of September 30, 2017 compared to 1.11% as of December 31, 2016.
|
|
·
|
Deposit growth has increased $46.6 million from December 31, 2016, to $1.05 billion at September 30, 2017. Borrowed funds have decreased $6.0 million from December 31, 2016 to September 30 2017. This decrease is attributable to the increase in deposits and decrease in investment securities, which have funded the loan growth in 2017.
|
|
·
|
Stockholders' equity totaled $129.9 million at September 30, 2017, which compares to $123.3 million at December 31, 2016, an increase of $6.6 million. The increase was attributable to net income for the nine months ended September 30, 2017 totaling $10.4 million and net treasury share transactions of $300,000. As a result of changes in interest rates impacting the fair value of investment securities, the unrealized gain on available for sale investment securities increased $.3 million from the end of 2016. These were offset by cash dividends of $4.4 million.
|
3
Dividend Declared
On September 5, 2017, the Board of Directors declared a cash dividend of $0.43 per share, which was paid on September 29, 2017 to shareholders of record at the close of business on September 15, 2017. The quarterly cash dividend is an increase of 7.5% over the regular cash dividend of $0.40 per share declared one year ago, as adjusted for the 5% stock dividend declared in June 2017.
Citizens Financial Services, Inc. has nearly 1,700 shareholders, the majority of whom reside in markets where 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.
4
|
CITIZENS FINANCIAL SERVICES, INC.
|
||||||||||||||||
|
CONSILIDATED FINANCIAL HIGHLIGHTS
|
||||||||||||||||
|
(UNAUDITED)
|
||||||||||||||||
|
(in thousands, except share data)
|
||||||||||||||||
|
As of or For The
|
As of or For The
|
|||||||||||||||
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
|
September 30
|
September 30
|
|||||||||||||||
|
2017
|
2016
|
2017
|
2016
|
|||||||||||||
|
Income and Performance Ratios
|
||||||||||||||||
|
Net Income
|
$
|
3,650
|
$
|
3,153
|
$
|
10,421
|
$
|
9,467
|
||||||||
|
Return on average assets (annualized)
|
1.15
|
%
|
1.06
|
%
|
1.12
|
%
|
1.06
|
%
|
||||||||
|
Return on average equity (annualized)
|
11.16
|
%
|
10.17
|
%
|
10.81
|
%
|
10.28
|
%
|
||||||||
|
Return on average tangible equity (annualized)
|
13.53
|
%
|
12.51
|
%
|
13.17
|
%
|
12.70
|
%
|
||||||||
|
Net interest margin (tax equivalent)
|
3.79
|
%
|
3.78
|
%
|
3.78
|
%
|
3.67
|
%
|
||||||||
|
Earnings per share - basic
|
$
|
1.05
|
$
|
0.90
|
$
|
2.99
|
$
|
2.70
|
||||||||
|
Earnings per share - diluted
|
$
|
1.05
|
$
|
0.90
|
$
|
2.99
|
$
|
2.69
|
||||||||
|
Cash dividends paid per share
|
$
|
0.430
|
$
|
0.400
|
$
|
1.240
|
$
|
1.183
|
||||||||
|
Asset quality
|
||||||||||||||||
|
Allowance for loan and lease losses
|
$
|
10,447
|
$
|
8,194
|
$
|
10,447
|
$
|
8,194
|
||||||||
|
Non-performing assets
|
$
|
13,564
|
$
|
11,770
|
$
|
13,564
|
$
|
11,770
|
||||||||
|
Allowance for loan and lease losses/total loans
|
1.15
|
%
|
1.09
|
%
|
1.15
|
%
|
1.09
|
%
|
||||||||
|
Non-performing assets to total loans
|
1.50
|
%
|
1.57
|
%
|
1.50
|
%
|
1.57
|
%
|
||||||||
|
Annualized net charge-offs (recoveries) to total loans
|
0.01
|
%
|
-0.18
|
%
|
0.03
|
%
|
-0.06
|
%
|
||||||||
|
Equity
|
||||||||||||||||
|
Book value per share
|
$
|
37.52
|
$
|
35.36
|
$
|
37.52
|
$
|
35.36
|
||||||||
|
Tangible Book value
|
$
|
30.95
|
$
|
28.77
|
$
|
30.95
|
$
|
28.77
|
||||||||
|
Market Value (Last trade of month)
|
$
|
57.00
|
$
|
50.40
|
$
|
57.00
|
$
|
50.40
|
||||||||
|
Common shares outstanding
|
3,491,511
|
3,345,564
|
3,491,511
|
3,345,564
|
||||||||||||
|
Number of shares used in computation - basic
|
3,482,936
|
3,505,526
|
3,480,760
|
3,512,187
|
||||||||||||
|
Number of shares used in computation - diluted
|
3,485,221
|
3,507,220
|
3,482,634
|
3,513,885
|
||||||||||||
|
Other
|
||||||||||||||||
|
Total Risk Based Capital Ratio (a)
|
14.41
|
%
|
15.72
|
%
|
14.41
|
%
|
15.72
|
%
|
||||||||
|
Tier 1 Risk Based Capital Ratio (a)
|
13.22
|
%
|
14.62
|
%
|
13.22
|
%
|
14.62
|
%
|
||||||||
|
Common Equity Tier 1 Risk Based Capital Ratio (a)
|
12.39
|
%
|
13.64
|
%
|
12.39
|
%
|
13.64
|
%
|
||||||||
|
Leverage Ratio
|
9.75
|
%
|
9.55
|
%
|
9.75
|
%
|
9.55
|
%
|
||||||||
|
Average Full Time Equivalent Employees
|
251.8
|
257.8
|
253.2
|
251.0
|
||||||||||||
|
Loan to deposit Ratio
|
88.58
|
%
|
74.21
|
%
|
85.88
|
%
|
74.21
|
%
|
||||||||
|
Balance Sheet Highlights
|
September 30
|
December 31
|
September 30
|
|||||||||
|
2017
|
2016
|
2016
|
||||||||||
|
Assets
|
$
|
1,269,787
|
$
|
1,223,018
|
$
|
1,197,654
|
||||||
|
Investment securities - Available for sale
|
263,588
|
314,017
|
349,154
|
|||||||||
|
Loans (net of unearned income)
|
907,162
|
799,611
|
751,293
|
|||||||||
|
Allowance for loan losses
|
10,447
|
8,886
|
8,194
|
|||||||||
|
Deposits
|
1,052,105
|
1,005,503
|
1,008,747
|
|||||||||
|
Stockholders' Equity
|
129,882
|
123,268
|
125,550
|
|||||||||
|
(a) Presented as projected for September 30, 2017 and actual for the remaining period
|
||||||||||||
5
|
CITIZENS FINANCIAL SERVICES, INC.
|
||||||||||||
|
CONSOLIDATED BALANCE SHEET
|
||||||||||||
|
(UNAUDITED)
|
||||||||||||
|
September 30
|
December 31
|
September 30
|
||||||||||
|
(in thousands except share data)
|
2017
|
2016
|
2016
|
|||||||||
|
ASSETS:
|
||||||||||||
|
Cash and due from banks:
|
||||||||||||
|
Noninterest-bearing
|
$
|
12,887
|
$
|
16,854
|
$
|
15,459
|
||||||
|
Interest-bearing
|
928
|
900
|
912
|
|||||||||
|
Total cash and cash equivalents
|
13,815
|
17,754
|
16,371
|
|||||||||
|
Interest bearing time deposits with other banks
|
10,031
|
6,955
|
6,955
|
|||||||||
|
Available-for-sale securities
|
263,588
|
314,017
|
349,154
|
|||||||||
|
Loans held for sale
|
1,431
|
1,827
|
576
|
|||||||||
|
Loans (net of allowance for loan losses: $10,447 at September 30, 2017;
|
||||||||||||
|
$8,886 at December 31, 2016 and $8,194 at September 30, 2016)
|
896,715
|
790,725
|
743,099
|
|||||||||
|
Premises and equipment
|
16,624
|
17,030
|
17,143
|
|||||||||
|
Accrued interest receivable
|
3,786
|
4,089
|
3,988
|
|||||||||
|
Goodwill
|
21,089
|
21,089
|
21,089
|
|||||||||
|
Bank owned life insurance
|
26,722
|
26,223
|
26,050
|
|||||||||
|
Other intangibles
|
1,872
|
2,096
|
2,059
|
|||||||||
|
Unsettled security sales
|
-
|
7,759
|
-
|
|||||||||
|
Other assets
|
14,114
|
13,454
|
11,170
|
|||||||||
|
TOTAL ASSETS
|
$
|
1,269,787
|
$
|
1,223,018
|
$
|
1,197,654
|
||||||
|
LIABILITIES:
|
||||||||||||
|
Deposits:
|
||||||||||||
|
Noninterest-bearing
|
$
|
154,142
|
$
|
147,425
|
$
|
149,848
|
||||||
|
Interest-bearing
|
897,963
|
858,078
|
858,899
|
|||||||||
|
Total deposits
|
1,052,105
|
1,005,503
|
1,008,747
|
|||||||||
|
Borrowed funds
|
73,628
|
79,662
|
51,859
|
|||||||||
|
Accrued interest payable
|
731
|
720
|
636
|
|||||||||
|
Other liabilities
|
13,441
|
13,865
|
10,862
|
|||||||||
|
TOTAL LIABILITIES
|
1,139,905
|
1,099,750
|
1,072,104
|
|||||||||
|
STOCKHOLDERS' EQUITY:
|
||||||||||||
|
Preferred Stock $1.00 par value; authorized
|
||||||||||||
|
3,000,000 shares; none issued in 2017 or 2016
|
-
|
-
|
-
|
|||||||||
|
Common stock
|
||||||||||||
|
$1.00 par value; authorized 15,000,000 shares at September 30, 2017, December 31, 2016
|
||||||||||||
|
and September 30, 2016; issued 3,869,939 at September 30, 2017 and 3,704,375 at
|
||||||||||||
|
December 31, 2016 and September 30, 2016
|
3,870
|
3,704
|
3,704
|
|||||||||
|
Additional paid-in capital
|
51,091
|
42,250
|
42,241
|
|||||||||
|
Retained earnings
|
88,318
|
91,278
|
89,501
|
|||||||||
|
Accumulated other comprehensive income (loss)
|
(1,128
|
)
|
(1,392
|
)
|
1,390
|
|||||||
|
Treasury stock, at cost: 378,428 shares at September 30, 2017; 384,671 shares at
|
||||||||||||
|
December 31, 2016 and 358,811 shares at September 30, 2016
|
(12,269
|
)
|
(12,572
|
)
|
(11,286
|
)
|
||||||
|
TOTAL STOCKHOLDERS' EQUITY
|
129,882
|
123,268
|
125,550
|
|||||||||
|
TOTAL LIABILITIES AND
|
||||||||||||
|
STOCKHOLDERS' EQUITY
|
$
|
1,269,787
|
$
|
1,223,018
|
$
|
1,197,654
|
||||||
6
|
CITIZENS FINANCIAL SERVICES, INC.
|
||||||||||||||||
|
CONSOLIDATED STATEMENT OF INCOME
|
||||||||||||||||
|
(UNAUDITED)
|
||||||||||||||||
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
|
September 30,
|
September 30,
|
|||||||||||||||
|
(in thousands, except per share data)
|
2017
|
2016
|
2017
|
2016
|
||||||||||||
|
INTEREST INCOME:
|
||||||||||||||||
|
Interest and fees on loans
|
$
|
10,659
|
$
|
9,204
|
$
|
30,680
|
$
|
26,387
|
||||||||
|
Interest-bearing deposits with banks
|
49
|
50
|
129
|
185
|
||||||||||||
|
Investment securities:
|
||||||||||||||||
|
Taxable
|
762
|
897
|
2,341
|
2,800
|
||||||||||||
|
Nontaxable
|
588
|
733
|
1,857
|
2,259
|
||||||||||||
|
Dividends
|
62
|
64
|
191
|
205
|
||||||||||||
|
TOTAL INTEREST INCOME
|
12,120
|
10,948
|
35,198
|
31,836
|
||||||||||||
|
INTEREST EXPENSE:
|
||||||||||||||||
|
Deposits
|
1,210
|
1,048
|
3,398
|
3,194
|
||||||||||||
|
Borrowed funds
|
293
|
188
|
782
|
554
|
||||||||||||
|
TOTAL INTEREST EXPENSE
|
1,503
|
1,236
|
4,180
|
3,748
|
||||||||||||
|
NET INTEREST INCOME
|
10,617
|
9,712
|
31,018
|
28,088
|
||||||||||||
|
Provision for loan losses
|
500
|
500
|
1,740
|
770
|
||||||||||||
|
NET INTEREST INCOME AFTER
|
||||||||||||||||
|
PROVISION FOR LOAN LOSSES
|
10,117
|
9,212
|
29,278
|
27,318
|
||||||||||||
|
NON-INTEREST INCOME:
|
||||||||||||||||
|
Service charges
|
1,145
|
1,115
|
3,323
|
3,345
|
||||||||||||
|
Trust
|
187
|
161
|
596
|
539
|
||||||||||||
|
Brokerage and insurance
|
154
|
211
|
459
|
578
|
||||||||||||
|
Gains on loans sold
|
134
|
109
|
383
|
225
|
||||||||||||
|
Investment securities gains, net
|
9
|
-
|
204
|
155
|
||||||||||||
|
Earnings on bank owned life insurance
|
166
|
174
|
499
|
515
|
||||||||||||
|
Other
|
126
|
138
|
380
|
450
|
||||||||||||
|
TOTAL NON-INTEREST INCOME
|
1,921
|
1,908
|
5,844
|
5,807
|
||||||||||||
|
NON-INTEREST EXPENSES:
|
||||||||||||||||
|
Salaries and employee benefits
|
4,237
|
4,285
|
12,880
|
12,067
|
||||||||||||
|
Occupancy
|
475
|
485
|
1,479
|
1,385
|
||||||||||||
|
Furniture and equipment
|
159
|
164
|
444
|
492
|
||||||||||||
|
Professional fees
|
286
|
283
|
854
|
836
|
||||||||||||
|
FDIC insurance
|
95
|
175
|
295
|
492
|
||||||||||||
|
Pennsylvania shares tax
|
243
|
240
|
767
|
630
|
||||||||||||
|
Amortization of intangibles
|
74
|
82
|
223
|
246
|
||||||||||||
|
ORE expenses (recovery)
|
171
|
(71
|
)
|
343
|
234
|
|||||||||||
|
Other
|
1,507
|
1,557
|
4,319
|
5,031
|
||||||||||||
|
TOTAL NON-INTEREST EXPENSES
|
7,247
|
7,200
|
21,604
|
21,413
|
||||||||||||
|
Income before provision for income taxes
|
4,791
|
3,920
|
13,518
|
11,712
|
||||||||||||
|
Provision for income taxes
|
1,141
|
767
|
3,097
|
2,245
|
||||||||||||
|
NET INCOME
|
$
|
3,650
|
$
|
3,153
|
$
|
10,421
|
$
|
9,467
|
||||||||
|
PER COMMON SHARE DATA:
|
||||||||||||||||
|
Net Income - Basic
|
$
|
1.05
|
$
|
0.90
|
$
|
2.99
|
$
|
2.70
|
||||||||
|
Net Income - Diluted
|
$
|
1.05
|
$
|
0.90
|
$
|
2.99
|
$
|
2.69
|
||||||||
|
Cash Dividends Paid
|
$
|
0.430
|
$
|
0.400
|
$
|
1.240
|
$
|
1.183
|
||||||||
|
Number of shares used in computation - basic
|
3,482,936
|
3,505,526
|
3,480,760
|
3,512,187
|
||||||||||||
|
Number of shares used in computation - diluted
|
3,485,221
|
3,507,220
|
3,482,634
|
3,513,885
|
||||||||||||
7
|
CITIZENS FINANCIAL SERVICES, INC.
|
||||||||||||||||||||
|
QUARTERLY CONDENSED, CONSOLIDATED INCOME STATEMENT INFORMATION
|
||||||||||||||||||||
|
(UNAUDITED)
|
||||||||||||||||||||
|
(in thousands, except share data)
|
Three Months Ended,
|
|||||||||||||||||||
|
Sep 30
|
June 30
|
March 31,
|
Dec 31
|
Sep 30
|
||||||||||||||||
|
2017
|
2017
|
2017
|
2016
|
2016
|
||||||||||||||||
|
Interest income
|
$
|
12,120
|
$
|
11,778
|
$
|
11,300
|
$
|
11,169
|
$
|
10,948
|
||||||||||
|
Interest expense
|
1,503
|
1,374
|
1,303
|
1,293
|
1,236
|
|||||||||||||||
|
Net interest income
|
10,617
|
10,404
|
9,997
|
9,876
|
9,712
|
|||||||||||||||
|
Provision for loan losses
|
500
|
625
|
615
|
750
|
500
|
|||||||||||||||
|
Net interest income after provision for loan losses
|
10,117
|
9,779
|
9,382
|
9,126
|
9,212
|
|||||||||||||||
|
Non-interest income
|
1,912
|
1,865
|
1,863
|
1,992
|
1,908
|
|||||||||||||||
|
Investment securities gains, net
|
9
|
23
|
172
|
100
|
-
|
|||||||||||||||
|
Non-interest expenses
|
7,247
|
7,166
|
7,191
|
7,258
|
7,200
|
|||||||||||||||
|
Income before provision for income taxes
|
4,791
|
4,501
|
4,226
|
3,960
|
3,920
|
|||||||||||||||
|
Provision for income taxes
|
1,141
|
1,033
|
923
|
789
|
767
|
|||||||||||||||
|
Net income
|
$
|
3,650
|
$
|
3,468
|
$
|
3,303
|
$
|
3,171
|
$
|
3,153
|
||||||||||
|
Earnings Per Share Basic
|
$
|
1.05
|
$
|
1.00
|
$
|
0.95
|
$
|
0.91
|
$
|
0.90
|
||||||||||
|
Earnings Per Share Diluted
|
$
|
1.05
|
$
|
1.00
|
$
|
0.95
|
$
|
0.91
|
$
|
0.90
|
||||||||||
8
|
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 September 30
|
||||||||||||||||||||||||
|
2017
|
2016
|
|||||||||||||||||||||||
|
Average
|
Average
|
Average
|
Average
|
|||||||||||||||||||||
|
Balance (1)
|
Interest
|
Rate
|
Balance (1)
|
Interest
|
Rate
|
|||||||||||||||||||
|
(dollars in thousands)
|
|
$ | $ |
|
%
|
|
$ | $ |
|
%
|
||||||||||||||
|
ASSETS
|
||||||||||||||||||||||||
|
Interest-bearing deposits at banks
|
8,552
|
3
|
0.16
|
17,864
|
16
|
0.36
|
||||||||||||||||||
|
Interest bearing time deposits at banks
|
8,953
|
47
|
2.07
|
6,956
|
34
|
1.92
|
||||||||||||||||||
|
Total investment securities
|
263,168
|
1,715
|
2.61
|
344,299
|
2,071
|
2.41
|
||||||||||||||||||
|
Loans, net of discount (2)(3)(4)
|
897,160
|
10,986
|
4.86
|
728,616
|
9,545
|
5.21
|
||||||||||||||||||
|
Total interest-earning assets
|
1,177,833
|
12,751
|
4.30
|
1,097,735
|
11,666
|
4.23
|
||||||||||||||||||
|
Cash and due from banks
|
6,739
|
7,587
|
||||||||||||||||||||||
|
Bank premises and equipment
|
16,722
|
17,220
|
||||||||||||||||||||||
|
Other assets
|
64,851
|
65,369
|
||||||||||||||||||||||
|
Total non-interest earning assets
|
88,312
|
90,176
|
||||||||||||||||||||||
|
Total assets
|
1,266,145
|
1,187,911
|
||||||||||||||||||||||
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||||||||||||||||||
|
Interest-bearing liabilities:
|
||||||||||||||||||||||||
|
NOW accounts
|
327,391
|
295
|
0.36
|
299,091
|
219
|
0.29
|
||||||||||||||||||
|
Savings accounts
|
180,891
|
49
|
0.11
|
171,064
|
46
|
0.11
|
||||||||||||||||||
|
Money market accounts
|
134,610
|
178
|
0.53
|
125,718
|
136
|
0.43
|
||||||||||||||||||
|
Certificates of deposit
|
263,065
|
688
|
1.04
|
267,235
|
647
|
0.96
|
||||||||||||||||||
|
Total interest-bearing deposits
|
905,957
|
1,210
|
0.53
|
863,108
|
1,048
|
0.48
|
||||||||||||||||||
|
Other borrowed funds
|
61,215
|
293
|
1.90
|
40,397
|
188
|
1.85
|
||||||||||||||||||
|
Total interest-bearing liabilities
|
967,172
|
1,503
|
0.62
|
903,505
|
1,236
|
0.54
|
||||||||||||||||||
|
Demand deposits
|
153,747
|
148,563
|
||||||||||||||||||||||
|
Other liabilities
|
14,388
|
11,803
|
||||||||||||||||||||||
|
Total non-interest-bearing liabilities
|
168,135
|
160,366
|
||||||||||||||||||||||
|
Stockholders' equity
|
130,838
|
124,040
|
||||||||||||||||||||||
|
Total liabilities & stockholders' equity
|
1,266,145
|
1,187,911
|
||||||||||||||||||||||
|
Net interest income
|
11,248
|
10,430
|
||||||||||||||||||||||
|
Net interest spread (5)
|
3.68
|
%
|
3.69
|
%
|
||||||||||||||||||||
|
Net interest income as a percentage
|
||||||||||||||||||||||||
|
of average interest-earning assets
|
3.79
|
%
|
3.78
|
%
|
||||||||||||||||||||
|
Ratio of interest-earning assets
|
||||||||||||||||||||||||
|
to interest-bearing liabilities
|
122
|
%
|
121
|
%
|
||||||||||||||||||||
|
(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 34%.
|
||||||||||||||||||||||||
|
(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.
|
||||||||||||||||||||||||
9
|
CITIZENS FINANCIAL SERVICES, INC.
|
||||||||||||||||||||||||
|
CONSOLIDATED AVERAGE BALANCES, INTEREST, YIELDS AND RATES, AND NET INTEREST MARGIN ON A FULLY TAX-EQUIVALENT BASIS
|
||||||||||||||||||||||||
|
(UNAUDITED)
|
||||||||||||||||||||||||
|
Nine Months Ended September 30
|
||||||||||||||||||||||||
|
2017
|
2016
|
|||||||||||||||||||||||
|
Average
|
Average
|
Average
|
Average
|
|||||||||||||||||||||
|
Balance (1)
|
Interest
|
Rate
|
Balance (1)
|
Interest
|
Rate
|
|||||||||||||||||||
|
(dollars in thousands)
|
|
$ | $ |
|
%
|
|
$ | $ |
|
%
|
||||||||||||||
|
ASSETS
|
||||||||||||||||||||||||
|
Interest-bearing deposits at banks
|
8,919
|
12
|
0.18
|
27,765
|
81
|
0.39
|
||||||||||||||||||
|
Interest bearing time deposits at banks
|
7,740
|
117
|
2.03
|
7,326
|
105
|
1.91
|
||||||||||||||||||
|
Total investment securities
|
283,847
|
5,345
|
2.51
|
359,766
|
6,427
|
2.38
|
||||||||||||||||||
|
Loans, net of discount (2)(3)(4)
|
864,294
|
31,649
|
4.90
|
709,539
|
27,445
|
5.17
|
||||||||||||||||||
|
Total interest-earning assets
|
1,164,800
|
37,123
|
4.26
|
1,104,396
|
34,058
|
4.12
|
||||||||||||||||||
|
Cash and due from banks
|
6,650
|
7,431
|
||||||||||||||||||||||
|
Bank premises and equipment
|
16,871
|
17,249
|
||||||||||||||||||||||
|
Other assets
|
55,874
|
57,653
|
||||||||||||||||||||||
|
Total non-interest earning assets
|
79,395
|
82,333
|
||||||||||||||||||||||
|
Total assets
|
1,244,195
|
1,186,729
|
||||||||||||||||||||||
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||||||||||||||||||
|
Interest-bearing liabilities:
|
||||||||||||||||||||||||
|
NOW accounts
|
322,084
|
829
|
0.34
|
301,885
|
687
|
0.30
|
||||||||||||||||||
|
Savings accounts
|
178,806
|
141
|
0.11
|
173,108
|
139
|
0.11
|
||||||||||||||||||
|
Money market accounts
|
126,874
|
469
|
0.49
|
118,252
|
392
|
0.44
|
||||||||||||||||||
|
Certificates of deposit
|
262,321
|
1,959
|
1.00
|
273,007
|
1,976
|
0.97
|
||||||||||||||||||
|
Total interest-bearing deposits
|
890,085
|
3,398
|
0.51
|
866,252
|
3,194
|
0.49
|
||||||||||||||||||
|
Other borrowed funds
|
58,651
|
782
|
1.78
|
39,801
|
554
|
1.86
|
||||||||||||||||||
|
Total interest-bearing liabilities
|
948,736
|
4,180
|
0.59
|
906,053
|
3,748
|
0.55
|
||||||||||||||||||
|
Demand deposits
|
152,188
|
145,663
|
||||||||||||||||||||||
|
Other liabilities
|
14,686
|
12,258
|
||||||||||||||||||||||
|
Total non-interest-bearing liabilities
|
166,874
|
157,921
|
||||||||||||||||||||||
|
Stockholders' equity
|
128,585
|
122,755
|
||||||||||||||||||||||
|
Total liabilities & stockholders' equity
|
1,244,195
|
1,186,729
|
||||||||||||||||||||||
|
Net interest income
|
32,943
|
30,310
|
||||||||||||||||||||||
|
Net interest spread (5)
|
3.67
|
%
|
3.57
|
%
|
||||||||||||||||||||
|
Net interest income as a percentage
|
||||||||||||||||||||||||
|
of average interest-earning assets
|
3.78
|
%
|
3.67
|
%
|
||||||||||||||||||||
|
Ratio of interest-earning assets
|
||||||||||||||||||||||||
|
to interest-bearing liabilities
|
123
|
%
|
122
|
%
|
||||||||||||||||||||
|
(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 34%.
|
||||||||||||||||||||||||
|
(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.
|
||||||||||||||||||||||||
10
|
CITIZENS FINANCIAL SERVICES, INC.
|
||||||||||||||||||||
|
SUMMARY OF LOANS BY TYPE
|
||||||||||||||||||||
|
(UNAUDITED)
|
||||||||||||||||||||
|
(Excludes Loans Held for Sale)
|
||||||||||||||||||||
|
(In Thousands)
|
||||||||||||||||||||
|
September 30,
|
June 30,
|
March 31,
|
December 31,
|
September 30,
|
||||||||||||||||
|
2017
|
2017
|
2017
|
2016
|
2016
|
||||||||||||||||
|
Real estate:
|
||||||||||||||||||||
|
Residential
|
$
|
206,389
|
$
|
205,725
|
$
|
203,817
|
$
|
207,423
|
$
|
205,092
|
||||||||||
|
Commercial
|
273,624
|
271,342
|
267,097
|
252,577
|
251,149
|
|||||||||||||||
|
Agricultural
|
207,052
|
188,547
|
156,299
|
123,624
|
88,555
|
|||||||||||||||
|
Construction
|
17,074
|
25,569
|
26,118
|
25,441
|
18,774
|
|||||||||||||||
|
Consumer
|
10,784
|
10,603
|
10,508
|
11,005
|
11,226
|
|||||||||||||||
|
Other commercial loans
|
56,222
|
56,952
|
59,800
|
58,639
|
57,062
|
|||||||||||||||
|
Other agricultural loans
|
34,066
|
32,974
|
24,227
|
23,388
|
21,196
|
|||||||||||||||
|
State & political subdivision loans
|
101,951
|
96,337
|
97,441
|
97,514
|
98,239
|
|||||||||||||||
|
Total loans
|
907,162
|
888,049
|
845,307
|
799,611
|
751,293
|
|||||||||||||||
|
Less allowance for loan losses
|
10,447
|
9,979
|
9,405
|
8,886
|
8,194
|
|||||||||||||||
|
Net loans
|
$
|
896,715
|
$
|
878,070
|
$
|
835,902
|
$
|
790,725
|
$
|
743,099
|
||||||||||
|
Past due and non-performing assets
|
||||||||||||||||||||
|
Total Loans past due 30-89 days and still accruing
|
$
|
3,360
|
$
|
2,927
|
$
|
2,548
|
$
|
2,999
|
$
|
7,835
|
||||||||||
|
Non-accrual loans
|
$
|
11,821
|
$
|
11,511
|
$
|
10,482
|
$
|
11,454
|
$
|
10,031
|
||||||||||
|
Loans past due 90 days or more and accruing
|
173
|
812
|
1,015
|
405
|
541
|
|||||||||||||||
|
Non-performing loans
|
$
|
11,994
|
$
|
12,323
|
$
|
11,497
|
$
|
11,859
|
$
|
10,572
|
||||||||||
|
OREO
|
1,570
|
1,194
|
1,248
|
1,036
|
1,198
|
|||||||||||||||
|
Total Non-performing assets
|
$
|
13,564
|
$
|
13,517
|
$
|
12,745
|
$
|
12,895
|
$
|
11,770
|
||||||||||
|
3 Months
|
3 Months
|
3 Months
|
3 Months
|
3 Months
|
||||||||||||||||
|
Ended
|
Ended
|
Ended
|
Ended
|
Ended
|
||||||||||||||||
|
Analysis of the Allowance for loan Losses
|
September 30,
|
June 30,
|
March 31,
|
December 31,
|
September 30,
|
|||||||||||||||
|
(In Thousands)
|
2017
|
2017
|
2017
|
2016
|
2016
|
|||||||||||||||
|
Balance, beginning of the period
|
$
|
9,979
|
$
|
9,405
|
$
|
8,886
|
$
|
8,194
|
$
|
7,359
|
||||||||||
|
Charge-offs
|
(56
|
)
|
(65
|
)
|
(119
|
)
|
(68
|
)
|
(173
|
)
|
||||||||||
|
Recoveries
|
24
|
14
|
23
|
10
|
508
|
|||||||||||||||
|
Net (charge-offs) recoveries
|
(32
|
)
|
(51
|
)
|
(96
|
)
|
(58
|
)
|
335
|
|||||||||||
|
Provision for loan losses
|
500
|
625
|
615
|
750
|
500
|
|||||||||||||||
|
Balance, end of period
|
$
|
10,447
|
$
|
9,979
|
$
|
9,405
|
$
|
8,886
|
$
|
8,194
|
||||||||||
11