Citizens Financial Services, Inc. Reports unaudited First quarter 2017 Earnings

MANSFIELD, Pa., April 26, 2017 /PRNewswire/ -- Citizens Financial Services, Inc. (OTC BB: CZFS), parent company of First Citizens Community Bank, released today its unaudited financial results for the three months ended March 31, 2017.

For the three months ended March 31, 2017, net income totaled $3,303,000 which compares to net income of $3,283,000 for the first quarter of 2016, an increase of $20,000.  Basic earnings per share of $1.00 for the first quarter of 2017 compares to $.98 per share for the first quarter last year.  Annualized return on equity for the three months ended March 31, 2017 and 2016 was 10.45% and 10.81%, while annualized return on assets was 1.08% and 1.11%, respectively.   The slight decrease in these profitability ratios was impacted by the provision for loan loss, which was $615,000 for the quarter ended March 31, 2017 compared to $135,000 for the same quarter last year, which is directly tied to loan growth.  Annualized return on equity and return on assets for the quarter ended March 31, 2017 were improved compared to the three months ended December 31, 2016, which were 10.12% and 1.05%, respectively. Similarly, net income for the first quarter of 2017 of $3,303,000, exceeded the fourth quarter of 2016's net income by $132,000, or 4.1%.

Net interest income before the provision for loan loss totaled $9,997,000 for the three months ended March 31, 2017 compared to $9,205,000 for the three months ended March 31, 2016, which is an increase of $792,000, or 8.6%.  The net interest margin for the three months ended March 31, 2017 was 3.78% compared to 3.64% for the same period last year.  CEO and President Randall E. Black stated, "Our strategy has been to shift interest earning assets from the investment portfolio into the loan portfolio.  This strategy has and should continue to result in higher yields on interest earning assets and also help us manage the balance sheet from an interest rate risk perspective in a rising rate environment.  The increase in the provision for loan loss is reflective of the strong loan growth during the first quarter of 2017, and although it impacts short-term profitability, the origination of high quality loans positions us for future revenue growth."

Non-interest expenses for the three months ended March 31, 2017 totaled $7,191,000 compared to $6,912,000 last year, an increase of $279,000.  Current year expenses reflect the increased costs associated with the additional lending teams, and branch and loan production office expansion, which were added during 2016 but did impact financial results for the three months ended March 31, 2016. 

At March 31, 2017, total assets were $1.225 billion which compares to $1.223 billion at December 31, 2016.  Available for sale securities of $281.8 million at March 31, 2017 decreased $32.2 million from December 31, 2016 to fund growth in the loan portfolio.  Net loans as of March 31, 2017 totaled $835.9 million and have increased $45.2 million from December 31, 2016.  Deposits have increased $32.1 million, from December 31, 2016 to a total of $1.038 billion at March 31, 2017.  Borrowed funds decreased $32.8 from December 31, 2016 to March 31, 2017, which is attributable to the increase in deposits and decrease in investment securities, offset by the first quarter 2017 loan growth.

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.

SOURCE Citizens Financial Services, Inc.

Related Links

http://www.firstcitizensbank.com