Financial Performance - Net income for 2024 was $27.8 million, an increase of $10.0 million or 56.2% compared to 2023, primarily due to one-time merger costs and credit loss provisions [2]. - Net income for Q4 2024 was $7,983,000, an increase from $7,540,000 in Q4 2023, representing a growth of 5.9% [14]. - Net income for the year ended December 31, 2024, was $27,818 thousand, up 56.3% from $17,811 thousand in 2023 [26]. - Earnings per share (EPS) for Q4 2024 was $1.68, compared to $1.59 in Q4 2023, reflecting a year-over-year increase of 5.7% [14]. - Basic and diluted earnings per share (excluding one-time items) were $1.68 in Q4 2024, up from $1.59 in Q4 2023, reflecting a growth of 5.7% [27]. Income and Expenses - Net interest income before provision for credit losses was $86.5 million for 2024, a 7.7% increase from $80.3 million in 2023 [4]. - Total non-interest income for 2024 was $15.4 million, an increase of $3.8 million from $11.6 million in 2023, driven by gains from the HVB acquisition [4]. - Total non-interest expenses for the year ended December 31, 2024, were $65,586,000, slightly up from $64,822,000 in 2023 [16]. - The provision for credit losses for the year ended December 31, 2024, was $2,587,000, significantly higher than $937,000 in 2023 [16]. Assets and Equity - Total assets increased to $3.03 billion as of December 31, 2024, up from $2.98 billion a year earlier [8]. - Stockholders' equity rose to $299.7 million at December 31, 2024, an increase of $20.1 million from $279.7 million in 2023 [9]. - Total assets increased to $3,025,724,000 as of December 31, 2024, up from $2,975,321,000 a year earlier, marking a growth of 1.7% [15]. - Stockholders' equity increased to $299,734,000 as of December 31, 2024, compared to $279,666,000 in the previous year, reflecting a growth of 7.1% [15]. - Tangible equity increased to $211,084 thousand in 2024 from $190,258 thousand in 2023, representing a growth of 10.4% [26]. Loan Performance - Net loans totaled $2.29 billion at December 31, 2024, an increase of $63.9 million from the previous year, primarily due to student loans [8]. - Total loans reached $2,313,242 thousand as of December 31, 2024, a slight decrease from $2,331,002 thousand in the previous quarter [24]. - Non-performing loans increased to $25,977 thousand in December 2024, up from $21,559 thousand in September 2024 [25]. - The allowance for credit losses on loans remained stable at $21,699 thousand as of December 31, 2024, compared to $21,695 thousand in the previous quarter [25]. Asset Quality - Non-performing assets increased to $28.6 million as of December 31, 2024, up $15.4 million from the previous year, largely due to large commercial loans placed on non-accrual status [8]. - Non-performing assets rose to $28,612,000 in Q4 2024, compared to $13,177,000 in Q4 2023, indicating a significant increase in asset quality concerns [14]. Efficiency Metrics - The return on average equity for 2024 was 9.59%, compared to 7.39% in 2023 [4]. - The return on average assets (annualized) improved to 1.06% in Q4 2024 from 1.01% in Q4 2023 [14]. - The net interest margin for Q4 2024 was 5.65%, compared to 5.49% in Q4 2023, indicating improved efficiency in earning assets [18]. - The average rate earned on interest-earning assets increased to 5.56% in 2024 from 5.07% in 2023 [21]. Dividends and Shareholder Returns - Cash dividends declared increased to $0.49 per share, up 1.0% from $0.485 per share declared in the previous year [10]. Workforce - The number of average full-time equivalent employees decreased to 388.5 in Q4 2024 from 395.3 in Q4 2023, suggesting a slight reduction in workforce [14].
Citizens Financial Services(CZFS) - 2024 Q4 - Annual Results