Pennsylvania
|
0-13222
|
23-2265045
|
||
(State or other jurisdiction of incorporation)
|
(Commission File Number)
|
(I.R.S. Employer Identification Number)
|
||
15 South Main Street, Mansfield, PA
|
16933
|
|||
(Address of Principal Executive Office)
|
(Zip Code)
|
|||
Registrant's telephone number, including area code:
|
(570) 662-2121
|
|||
N/A
|
||||
(Former name or former address, if changes since last report)
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Emerging growth company
|
Exhibit Number
|
Description
|
99.1
|
Press Release issued by Citizens Financial Services, Inc. on July 25, 2017, titled "Citizens Financial Services, Inc. Reports Unaudited Second Quarter 2017 Earnings".
|
Citizens Financial Services, Inc. | |||
July 25, 2017
|
By:
|
/s/ Mickey L. Jones | |
Mickey L. Jones | |||
Chief Operating Officer / Chief Financial Officer | |||
CITIZENS FINANCIAL SERVICES, INC.
|
||||||||||||
CONSOLIDATED BALANCE SHEET
|
||||||||||||
(UNAUDITED)
|
||||||||||||
June 30
|
December 31
|
June 30
|
||||||||||
(in thousands except share data)
|
2017
|
2016
|
2016
|
|||||||||
ASSETS:
|
||||||||||||
Cash and due from banks:
|
||||||||||||
Noninterest-bearing
|
$
|
18,298
|
$
|
16,854
|
$
|
14,908
|
||||||
Interest-bearing
|
1,064
|
900
|
11,914
|
|||||||||
Total cash and cash equivalents
|
19,362
|
17,754
|
26,822
|
|||||||||
Interest bearing time deposits with other banks
|
8,791
|
6,955
|
6,954
|
|||||||||
Available-for-sale securities
|
275,208
|
314,017
|
360,944
|
|||||||||
Loans held for sale
|
393
|
1,827
|
1,304
|
|||||||||
Loans (net of allowance for loan losses: $9,979 at June 30, 2017;
|
||||||||||||
$8,886 at December 31, 2016 and $7,359 at June 30, 2016)
|
878,070
|
790,725
|
701,756
|
|||||||||
Premises and equipment
|
16,771
|
17,030
|
17,239
|
|||||||||
Accrued interest receivable
|
3,697
|
4,089
|
4,176
|
|||||||||
Goodwill
|
21,089
|
21,089
|
21,089
|
|||||||||
Bank owned life insurance
|
26,556
|
26,223
|
25,877
|
|||||||||
Other intangibles
|
1,945
|
2,096
|
2,183
|
|||||||||
Unsettled security sales
|
-
|
7,759
|
-
|
|||||||||
Other assets
|
12,974
|
13,454
|
11,174
|
|||||||||
TOTAL ASSETS
|
$
|
1,264,856
|
$
|
1,223,018
|
$
|
1,179,518
|
||||||
LIABILITIES:
|
||||||||||||
Deposits:
|
||||||||||||
Noninterest-bearing
|
$
|
156,374
|
$
|
147,425
|
$
|
142,327
|
||||||
Interest-bearing
|
894,835
|
858,078
|
861,155
|
|||||||||
Total deposits
|
1,051,209
|
1,005,503
|
1,003,482
|
|||||||||
Borrowed funds
|
69,998
|
79,662
|
38,786
|
|||||||||
Accrued interest payable
|
628
|
720
|
644
|
|||||||||
Other liabilities
|
15,251
|
13,865
|
12,150
|
|||||||||
TOTAL LIABILITIES
|
1,137,086
|
1,099,750
|
1,055,062
|
|||||||||
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 June 30, 2017, December 31, 2016
|
||||||||||||
and June 30, 2016; issued 3,869,939 at June 30, 2017 and 3,704,375 at December 31, 2016
|
||||||||||||
and June 30, 2016
|
3,870
|
3,704
|
3,704
|
|||||||||
Additional paid-in capital
|
51,085
|
42,250
|
42,241
|
|||||||||
Retained earnings
|
86,170
|
91,278
|
87,753
|
|||||||||
Accumulated other comprehensive income (loss)
|
(969
|
)
|
(1,392
|
)
|
2,042
|
|||||||
Treasury stock, at cost: 380,775 shares at June 30, 2017; 384,671 shares at
|
||||||||||||
December 31, 2016 and 358,921 shares at June 30, 2016
|
(12,386
|
)
|
(12,572
|
)
|
(11,284
|
)
|
||||||
TOTAL STOCKHOLDERS' EQUITY
|
127,770
|
123,268
|
124,456
|
|||||||||
TOTAL LIABILITIES AND
|
||||||||||||
STOCKHOLDERS' EQUITY
|
$
|
1,264,856
|
$
|
1,223,018
|
$
|
1,179,518
|
CITIZENS FINANCIAL SERVICES, INC.
|
||||||||||||||||
CONSOLIDATED STATEMENT OF INCOME
|
||||||||||||||||
(UNAUDITED)
|
||||||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 3
|
June 30,
|
|||||||||||||||
(in thousands, except per share data)
|
2017
|
2016
|
2017
|
2016
|
||||||||||||
INTEREST INCOME:
|
||||||||||||||||
Interest and fees on loans
|
$
|
10,304
|
$
|
8,587
|
$
|
20,021
|
$
|
17,183
|
||||||||
Interest-bearing deposits with banks
|
45
|
64
|
80
|
135
|
||||||||||||
Investment securities:
|
||||||||||||||||
Taxable
|
775
|
959
|
1,579
|
1,903
|
||||||||||||
Nontaxable
|
601
|
755
|
1,269
|
1,526
|
||||||||||||
Dividends
|
53
|
61
|
129
|
141
|
||||||||||||
TOTAL INTEREST INCOME
|
11,778
|
10,426
|
23,078
|
20,888
|
||||||||||||
INTEREST EXPENSE:
|
||||||||||||||||
Deposits
|
1,143
|
1,072
|
2,188
|
2,146
|
||||||||||||
Borrowed funds
|
231
|
183
|
489
|
366
|
||||||||||||
TOTAL INTEREST EXPENSE
|
1,374
|
1,255
|
2,677
|
2,512
|
||||||||||||
NET INTEREST INCOME
|
10,404
|
9,171
|
20,401
|
18,376
|
||||||||||||
Provision for loan losses
|
625
|
135
|
1,240
|
270
|
||||||||||||
NET INTEREST INCOME AFTER
|
||||||||||||||||
PROVISION FOR LOAN LOSSES
|
9,779
|
9,036
|
19,161
|
18,106
|
||||||||||||
NON-INTEREST INCOME:
|
||||||||||||||||
Service charges
|
1,120
|
1,128
|
2,178
|
2,230
|
||||||||||||
Trust
|
188
|
182
|
409
|
378
|
||||||||||||
Brokerage and insurance
|
114
|
158
|
305
|
367
|
||||||||||||
Gains on loans sold
|
148
|
70
|
249
|
116
|
||||||||||||
Investment securities gains, net
|
23
|
128
|
195
|
155
|
||||||||||||
Earnings on bank owned life insurance
|
167
|
172
|
333
|
342
|
||||||||||||
Other
|
128
|
145
|
254
|
311
|
||||||||||||
TOTAL NON-INTEREST INCOME
|
1,888
|
1,983
|
3,923
|
3,899
|
||||||||||||
NON-INTEREST EXPENSES:
|
||||||||||||||||
Salaries and employee benefits
|
4,324
|
3,900
|
8,643
|
7,782
|
||||||||||||
Occupancy
|
477
|
455
|
1,004
|
900
|
||||||||||||
Furniture and equipment
|
146
|
171
|
285
|
328
|
||||||||||||
Professional fees
|
258
|
266
|
568
|
553
|
||||||||||||
FDIC insurance
|
95
|
160
|
200
|
317
|
||||||||||||
Pennsylvania shares tax
|
243
|
240
|
524
|
390
|
||||||||||||
Amortization of intangibles
|
73
|
82
|
149
|
164
|
||||||||||||
ORE expenses
|
82
|
212
|
172
|
305
|
||||||||||||
Other
|
1,468
|
1,815
|
2,812
|
3,474
|
||||||||||||
TOTAL NON-INTEREST EXPENSES
|
7,166
|
7,301
|
14,357
|
14,213
|
||||||||||||
Income before provision for income taxes
|
4,501
|
3,718
|
8,727
|
7,792
|
||||||||||||
Provision for income taxes
|
1,033
|
687
|
1,956
|
1,478
|
||||||||||||
NET INCOME
|
$
|
3,468
|
$
|
3,031
|
$
|
6,771
|
$
|
6,314
|
||||||||
PER COMMON SHARE DATA:
|
||||||||||||||||
Net Income - Basic
|
$
|
1.00
|
$
|
0.86
|
$
|
1.95
|
$
|
1.80
|
||||||||
Net Income - Diluted
|
$
|
1.00
|
$
|
0.86
|
$
|
1.95
|
$
|
1.80
|
||||||||
Cash Dividends Paid
|
$
|
0.405
|
$
|
0.392
|
$
|
0.810
|
$
|
0.783
|
||||||||
Number of shares used in computation - basic
|
3,480,122
|
3,508,818
|
3,479,653
|
3,515,477
|
||||||||||||
Number of shares used in computation - diluted
|
3,481,310
|
3,509,227
|
3,480,263
|
3,515,682
|
Consolidated Financial Highlights
|
||||||||||||||||
Three Months Ended
|
Six Months Ended
|
|||||||||||||||
June 30
|
June 30
|
|||||||||||||||
2017
|
2016
|
2016
|
2015
|
|||||||||||||
Performance Ratios and Share Data:
|
||||||||||||||||
Return on average assets (annualized)
|
1.12
|
%
|
1.02
|
%
|
1.10
|
%
|
1.06
|
%
|
||||||||
Return on average equity (annualized)
|
10.80
|
%
|
9.88
|
%
|
10.63
|
%
|
10.34
|
%
|
||||||||
Return on average tangible equity (annualized)
|
13.16
|
%
|
12.19
|
%
|
12.98
|
%
|
12.79
|
%
|
||||||||
Net interest margin (tax equivalent)
|
3.82
|
%
|
3.62
|
%
|
3.79
|
%
|
3.62
|
%
|
||||||||
Cash dividends paid per share
|
$
|
0.405
|
$
|
0.392
|
$
|
0.810
|
$
|
0.783
|
||||||||
Earnings per share - basic
|
$
|
1.00
|
$
|
0.86
|
$
|
1.95
|
$
|
1.80
|
||||||||
Earnings per share - diluted
|
$
|
1.00
|
$
|
0.86
|
$
|
1.95
|
$
|
1.80
|
||||||||
Number of shares used in computation - basic
|
3,480,122
|
3,508,818
|
3,479,653
|
3,515,477
|
||||||||||||
Number of shares used in computation - diluted
|
3,481,310
|
3,509,227
|
3,480,263
|
3,515,682
|
Balance Sheet Highlights (dollars in thousands, except share and per share data):
|
June 30, 2017
|
December 31, 2016
|
June 30, 2016
|
|||||||||
Assets
|
$
|
1,264,479
|
$
|
1,223,018
|
$
|
1,179,518
|
||||||
Investment securities:
|
||||||||||||
Available for sale
|
275,208
|
314,017
|
360,944
|
|||||||||
Loans (net of unearned income)
|
888,049
|
799,611
|
709,115
|
|||||||||
Allowance for loan losses
|
9,979
|
8,886
|
7,359
|
|||||||||
Deposits
|
1,051,209
|
1,005,503
|
1,003,482
|
|||||||||
Stockholders' Equity
|
127,770
|
123,268
|
124,456
|
|||||||||
Non-performing assets
|
13,517
|
12,895
|
12,868
|
|||||||||
Non-performing assets to total loans
|
1.52
|
%
|
1.61
|
%
|
1.81
|
%
|
||||||
Annualized net charge-offs (recoveries) to total loans
|
0.03
|
%
|
-0.03
|
%
|
0.00
|
%
|
||||||
Average Leverage Ratio
|
9.55
|
%
|
9.46
|
%
|
9.40
|
%
|
||||||
Common shares outstanding
|
3,489,164
|
3,319,704
|
3,345,454
|
|||||||||
Book value per share
|
$
|
36.90
|
$
|
35.77
|
$
|
34.87
|