Citizens Financial Services(CZFS) - 2025 Q2 - Quarterly Results

Executive Summary & Highlights Financial Performance Overview Citizens Financial Services, Inc. reported significant increases in net income and improved profitability ratios for both Q2 and H1 2025, driven by increased net interest income and reduced credit loss provisions | Metric | Q2 2025 | Q2 2024 | Change (QoQ) | H1 2025 | H1 2024 | Change (YoY) | | :-------------------------------- | :------ | :------ | :----------- | :------ | :------ | :----------- | | Net Income | $8.5M | $5.3M | +$3.2M | $16.1M | $12.3M | +$3.8M (30.8%) | | Net Interest Income (pre-PCL) | N/A | N/A | N/A | $46.7M | $42.3M | +$4.4M (10.4%) | | Provision for Credit Losses | $0.75M | $2.0M | -$1.25M | $1.375M | $2.787M | -$1.412M | | Effective Tax Rate | 18.8% | 17.4% | +1.4 pp | 18.7% | 17.4% | +1.3 pp | | Ratio (Annualized) | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :----------------------------- | :------ | :------ | :------ | :------ | | Return on Average Equity | 10.88% | 7.40% | 10.44% | 8.67% | | Return on Average Tangible Equity (non-GAAP) | 15.19% | 10.76% | 14.65% | 12.64% | | Return on Average Assets | 1.13% | 0.72% | 1.07% | 0.83% | Asset Quality and Ratios Non-performing assets decreased from year-end 2024 but rose significantly year-over-year due to HVB acquisition loans | Asset Quality Metric | June 30, 2025 | Dec 31, 2024 | June 30, 2024 | Change (vs Dec 31, 2024) | Change (vs June 30, 2024) | | :----------------------------- | :------------ | :----------- | :------------ | :----------------------- | :------------------------ | | Non-performing assets | $27.376M | $28.612M | $17.924M | -$1.236M | +$9.452M | | Non-performing assets as % of loans | 1.22% | 1.24% | 0.79% | -0.02 pp | +0.43 pp | | Specific reserves for non-performing assets | $1.477M | N/A | $2.405M | N/A | -$0.928M | - The increase in non-performing assets from June 30, 2024, is attributed to loans acquired as part of the HVB acquisition[3] - The bank's strategy for these loans includes improving credit metrics, refinancing, or selling collateral[3] Detailed Financial Review Six Months Ended June 30, 2025 vs. 2024 H1 2025 showed strong financial improvement driven by increased net interest income and reduced credit loss provisions Net Income and EPS (Six Months) H1 2025 net income increased substantially, boosting EPS and returns on equity and assets due to improved margins and lower credit provisions | Metric | H1 2025 | H1 2024 | Change | | :----------------------- | :------ | :------ | :------- | | Net Income | $16.084M | $12.299M | +$3.785M | | Basic EPS | $3.35 | $2.56 | +$0.79 | | Annualized ROE | 10.44% | 8.67% | +1.77 pp | | Annualized ROA | 1.07% | 0.83% | +0.24 pp | Net Interest Income (Six Months) Net interest income before credit losses rose 10.4% due to asset growth and an improved net interest margin | Metric | H1 2025 | H1 2024 | Change | | :-------------------------------- | :------ | :------ | :------- | | Net Interest Income (pre-PCL) | $46.650M | $42.258M | +$4.392M (10.4%) | | Average Interest Earning Assets | +$49.5M | N/A | N/A | | Yield on Interest Earning Assets | 5.58% | 5.52% | +6 bps | | Cost of Interest-Bearing Liabilities | 2.75% | 2.99% | -24 bps | | Tax Effected Net Interest Margin | 3.36% | 3.09% | +27 bps | Provision for Credit Losses (Six Months) The provision for credit losses significantly decreased in H1 2025, contrasting with the prior year's impact from Braavo loans | Metric | H1 2025 | H1 2024 | Change | | :------------------------ | :------ | :------ | :------- | | Provision for Credit Losses | $1.375M | $2.787M | -$1.412M | - The 2024 provision was significantly impacted by loans not sold as part of the Braavo division sale and an increase in past due/classified loans, while the 2025 provision was due to an increase in past due loans and the annual update of loss drivers[2][4] Non-Interest Income and Expenses (Six Months) Non-interest income decreased due to the absence of the Braavo sale gain, while expenses slightly fell despite higher salaries | Metric | H1 2025 | H1 2024 | Change | | :-------------------------- | :------ | :------ | :------- | | Total Non-Interest Income | $7.092M | $8.307M | -$1.215M | | Total Non-Interest Expenses | $32.575M | $32.889M | -$0.314M | | Salary and Benefit Costs | $20.265M | $19.907M | +$0.358M | | Professional Fees & Software Costs | $1.927M | $2.409M | -$0.482M | - The decrease in non-interest income was primarily due to the gain on the sale of Braavo assets and earnings on bank-owned life insurance in 2024[4][6] - The decrease in non-interest expenses was due to the sale of the Braavo division in 2024, offsetting increased healthcare and post-employment benefits[4][6] Income Tax Provision (Six Months) The provision for income taxes increased in H1 2025, correlating with the significant rise in income before tax | Metric | H1 2025 | H1 2024 | Change | | :------------------------ | :------ | :------ | :------- | | Provision for Income Taxes | $3.708M | $2.590M | +$1.118M | | Income Before Income Tax | $19.792M | $14.889M | +$4.903M | Three Months Ended June 30, 2025 vs. 2024 Q2 2025 showed robust financial growth with net income up over 60%, driven by increased net interest income and lower credit provisions Net Income and EPS (Three Months) Q2 2025 net income surged by 60.4%, resulting in higher basic EPS and improved annualized returns on equity and assets | Metric | Q2 2025 | Q2 2024 | Change | | :----------------------- | :------ | :------ | :------- | | Net Income | $8.463M | $5.275M | +$3.188M (60.4%) | | Basic EPS | $1.76 | $1.10 | +$0.66 | | Annualized ROE | 10.88% | 7.40% | +3.48 pp | | Annualized ROA | 1.13% | 0.72% | +0.41 pp | Net Interest Income (Three Months) Net interest income before credit losses increased 11.0% in Q2 2025, driven by asset growth and an expanded net interest margin | Metric | Q2 2025 | Q2 2024 | Change | | :-------------------------------- | :------ | :------ | :------- | | Net Interest Income (pre-PCL) | $23.648M | $21.300M | +$2.348M (11.0%) | | Average Interest Earning Assets | +$47.0M | N/A | N/A | | Yield on Interest Earning Assets | 5.66% | 5.58% | +8 bps | | Cost of Interest-Bearing Liabilities | 2.73% | 3.00% | -27 bps | | Tax Effected Net Interest Margin | 3.47% | 3.15% | +32 bps | Provision for Credit Losses (Three Months) Q2 2025 provision for credit losses was significantly lower than prior year, primarily due to an increase in past due commercial loans | Metric | Q2 2025 | Q2 2024 | Change | | :------------------------ | :------ | :------ | :------- | | Provision for Credit Losses | $0.750M | $2.002M | -$1.252M | - The Q2 2025 provision was driven by an increase in past due commercial loans, specifically one commercial real estate relationship totaling $14.4 million[6] - The Q2 2024 provision was impacted by Braavo loans and an increase in past due/classified loans[6] Non-Interest Income and Expenses (Three Months) Total non-interest income increased in Q2 2025 due to higher gains on loans and equity securities, while expenses slightly decreased | Metric | Q2 2025 | Q2 2024 | Change | | :-------------------------- | :------ | :------ | :------- | | Total Non-Interest Income | $3.665M | $3.336M | +$0.329M | | Gains on Loans Sold | $0.739M | $0.479M | +$0.260M | | Equity Security Gains (net) | $0.033M | -$0.087M | +$0.120M | | Total Non-Interest Expenses | $16.147M | $16.246M | -$0.099M (-0.6%) | | Salary and Employee Benefits | Increased | N/A | N/A | | ORE Expenses | Decreased | N/A | N/A | Income Tax Provision (Three Months) The provision for income taxes increased in Q2 2025, reflecting higher income before taxes and a slightly elevated effective tax rate | Metric | Q2 2025 | Q2 2024 | Change | | :------------------------ | :------ | :------ | :------- | | Provision for Income Taxes | $1.953M | $1.113M | +$0.840M | | Income Before Income Taxes | $10.416M | $6.388M | +$4.028M | | Effective Tax Rate | 18.8% | 17.4% | +1.4 pp | Balance Sheet and Other Information Assets Overview Total assets remained stable year-over-year but slightly decreased from year-end 2024, with net loans declining due to seasonal paydowns | Metric | June 30, 2025 | Dec 31, 2024 | June 30, 2024 | Change (vs Dec 31, 2024) | Change (vs June 30, 2024) | | :-------------------------- | :------------ | :----------- | :------------ | :----------------------- | :------------------------ | | Total Assets | $2.97B | $3.03B | $2.95B | -$0.06B | +$0.02B | | Available for Sale Securities | $431.6M | $425.9M | $402.6M | +$5.7M | +$29.0M | | Yield on Investment Portfolio | 2.89% | 2.32% | N/A | +0.57 pp | N/A | | Net Loans | $2.22B | $2.29B | $2.23B | -$71.9M | -$10.0M | - The decrease in net loans is attributed to the seasonality of the student loan portfolio, which typically grows in the second half of the year and pays down in the first half[8] Liabilities and Equity Deposits decreased from year-end 2024 due to competitive pressures, while stockholders' equity grew, benefiting from reduced AOCL | Metric | June 30, 2025 | Dec 31, 2024 | June 30, 2024 | Change (vs Dec 31, 2024) | Change (vs June 30, 2024) | | :-------------------- | :------------ | :----------- | :------------ | :----------------------- | :------------------------ | | Deposits | $2.29B | $2.38B | $2.27B | -$89.4M | +$22.0M | | Brokered CDs | Decreased $33.1M | N/A | N/A | N/A | N/A | | Borrowed Funds | $313.2M | $297.7M | $334.8M | +$15.5M | -$21.6M | | Stockholders' Equity | $313.7M | $299.7M | $286.5M | +$13.9M | +$27.2M | | Stockholders' Equity (Excluding AOCL, non-GAAP) | $334.7M | N/A | N/A | +$11.4M | N/A | | Accumulated Other Comprehensive Loss (AOCL) | -$21.026M | -$23.521M | -$25.932M | +$2.5M | +$4.9M | - The decrease in deposits was influenced by competitive pressure and a $68.3 million decrease from a school district utilizing funds[8] Loan Portfolio and Credit Quality Allowance for credit losses on loans increased from year-end 2024 due to past due loans and forecast adjustments | Metric | June 30, 2025 | Dec 31, 2024 | June 30, 2024 | Change (vs Dec 31, 2024) | | :-------------------------------- | :------------ | :----------- | :------------ | :----------------------- | | Allowance for Credit Losses - Loans | $22.109M | $21.699M | $22.797M | +$0.410M | | Provision for Credit Losses on Loans (H1 2025) | $1.137M | N/A | N/A | N/A | | Loan Recoveries (H1 2025) | $0.054M | N/A | N/A | N/A | | Charge-offs (H1 2025) | $0.781M | N/A | N/A | N/A | | Allowance for Credit Losses as % of Total Loans | 0.99% | 0.94% | 1.01% | +0.05 pp | Dividend Declaration The Board of Directors declared a quarterly cash dividend of $0.495 per share, a 2.1% increase year-over-year | Metric | Value | | :-------------------- | :---- | | Cash Dividend per Share | $0.495 | | Increase over prior year | 2.1% | - The dividend was paid on June 27, 2025, to shareholders of record on June 13, 2025[9] Forward-Looking Statements This section cautions that forward-looking statements are subject to risks and uncertainties, and the company disclaims any obligation to update them - Forward-looking statements are not historical facts but are based on current expectations regarding business strategies and future performance[11] - Numerous risks and uncertainties, including changes in economic conditions, interest rates, and regulatory changes, could cause actual results to differ from those expressed or implied[11] - Readers are cautioned not to place undue reliance on forward-looking statements, and the company assumes no obligation to update them unless required by law[11] Detailed Financial Statements and Reconciliations Consolidated Financial Highlights This table summarizes key income, performance, asset quality, and equity metrics for Q2 and H1 2025 and comparable periods | | As of or For The | | | | As of or For The | | | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | | Three Months Ended June 30, | | | | Six Months Ended June 30, | | | | | 2025 | | 2024 | | 2025 | | 2024 | | | Income and Performance Ratios | | | | | | | | | | Net Income (in thousands) | $8,463 | | $5,275 | | $16,084 | | $12,299 | | | Return on average assets (annualized) | 1.13% | | 0.72% | | 1.07% | | 0.83% | | | Return on average equity (annualized) | 10.88% | | 7.40% | | 10.44% | | 8.67% | | | Return on average tangible equity (annualized) (a) | 15.19% | | 10.76% | | 14.65% | | 12.64% | | | Net interest margin (tax equivalent) (a) | 3.47% | | 3.15% | | 3.36% | | 3.09% | | | Earnings per share - basic (b) | $1.76 | | $1.10 | | $3.35 | | $2.56 | | | Cash dividends paid per share (b) | $0.490 | | $0.480 | | $0.980 | | $0.961 | | | Asset quality | | | | | | | | | | Allowance for credit losses - loans (in thousands) | $22,109 | | $22,797 | | | | | | | Non-performing assets (in thousands) | $27,376 | | $17,924 | | | | | | | Allowance for credit losses - loans to total loans | 0.99% | | 1.01% | | | | | | | Non-performing assets to total loans | 1.22% | | 0.79% | | | | | | | Annualized net charge-offs to total loans | 0.10% | | 0.12% | | 0.06% | | 0.12% | | | Equity | | | | | | | | | | Book value per share (b) | $65.25 | | $59.60 | | | | | | | Tangible Book value per share (a) (b) | $46.88 | | $41.08 | | | | | | | Common shares outstanding | 4,807,000 | | 4,759,486 | | | | | | | Balance Sheet Highlights | June 30, | | December 31, | | June 30, | | | | | | 2025 | | 2024 | | 2024 | | | | | Assets (in thousands) | $2,967,274 | | $3,025,724 | | $2,947,531 | | | | | Investment securities (in thousands) | 433,417 | | 427,659 | | 404,231 | | | | | Loans (net of unearned income) (in thousands) | 2,241,755 | | 2,313,242 | | 2,255,716 | | | | | Deposits (in thousands) | 2,292,662 | | 2,382,028 | | 2,273,095 | | | | | Stockholders' Equity (in thousands) | 313,653 | | 299,734 | | 286,470 | | | | Consolidated Balance Sheet This table presents the consolidated balance sheet for Citizens Financial Services, Inc. as of June 30, 2025, and prior periods | (in thousands except share data) | June 30, 2025 | December 31, 2024 | June 30, 2024 | | :-------------------------------- | :------------ | :---------------- | :------------ | | ASSETS: | | | | | Total cash and cash equivalents | $49,484 | $42,202 | $38,433 | | Available-for-sale securities | 431,649 | 425,912 | 402,661 | | Loans (net of allowance for credit losses) | 2,219,646 | 2,291,543 | 2,232,919 | | TOTAL ASSETS | $2,967,274 | $3,025,724 | $2,947,531 | | LIABILITIES: | | | | | Total deposits | $2,292,662 | $2,382,028 | $2,273,095 | | Borrowed funds | 313,219 | 297,721 | 334,829 | | TOTAL LIABILITIES | 2,653,621 | 2,725,990 | 2,661,061 | | STOCKHOLDERS' EQUITY: | | | | | TOTAL STOCKHOLDERS' EQUITY | 313,653 | 299,734 | 286,470 | | TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $2,967,274 | $3,025,724 | $2,947,531 | Consolidated Statement of Income This table details the consolidated statement of income for Q2 and H1 2025 and 2024, including interest, non-interest, and net income | (in thousands, except share and per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | TOTAL INTEREST INCOME | $38,749 | $37,902 | $77,763 | $75,835 | | TOTAL INTEREST EXPENSE | 15,101 | 16,602 | 31,113 | 33,577 | | NET INTEREST INCOME | 23,648 | 21,300 | 46,650 | 42,258 | | Provision for credit losses | 750 | 2,002 | 1,375 | 2,787 | | NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 22,898 | 19,298 | 45,275 | 39,471 | | TOTAL NON-INTEREST INCOME | 3,665 | 3,336 | 7,092 | 8,307 | | TOTAL NON-INTEREST EXPENSES | 16,147 | 16,246 | 32,575 | 32,889 | | Income before provision for income taxes | 10,416 | 6,388 | 19,792 | 14,889 | | Provision for income tax expense | 1,953 | 1,113 | 3,708 | 2,590 | | NET INCOME | $8,463 | $5,275 | $16,084 | $12,299 | | PER COMMON SHARE DATA: | | | | | | Net Income - Basic | $1.76 | $1.10 | $3.35 | $2.56 | | Cash Dividends Paid | $0.490 | $0.480 | $0.980 | $0.961 | Quarterly Condensed Income Statement This table provides a quarterly breakdown of key income statement items for the past five quarters ending June 30, 2025 | (in thousands, except per share data) | June 30, 2025 | March 31, 2025 | Dec 31, 2024 | Sept 30, 2024 | June 30, 2024 | | :------------------------------------ | :------------ | :------------- | :----------- | :------------ | :------------ | | Interest income | $38,749 | $39,014 | $39,793 | $38,689 | $37,902 | | Interest expense | 15,101 | 16,012 | 16,920 | 17,365 | 16,602 | | Net interest income | 23,648 | 23,002 | 22,873 | 21,324 | 21,300 | | Provision (release) for credit losses | 750 | 625 | - | (200) | 2,002 | | Net interest income after provision (release) for credit losses | 22,898 | 22,377 | 22,873 | 21,524 | 19,298 | | Non-interest income | 3,632 | 3,438 | 3,321 | 3,596 | 3,423 | | Non-interest expenses | 16,147 | 16,428 | 16,668 | 16,029 | 16,246 | | Income before provision for income taxes | 10,416 | 9,376 | 9,544 | 9,250 | 6,388 | | Provision for income tax expense | 1,953 | 1,755 | 1,561 | 1,714 | 1,113 | | Net income | $8,463 | $7,621 | $7,983 | $7,536 | $5,275 | | Earnings Per Share - Basic | $1.76 | $1.59 | $1.66 | $1.57 | $1.10 | Net Interest Margin Analysis (Three Months) This table details average balances, interest, yields, and rates for Q2 2025 and 2024, providing net interest margin insights | (dollars in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | | Average Balance | Interest | Rate | Average Balance | Interest | Rate | | ASSETS | | | | | | | | Total interest-earning assets | $2,795,139 | $39,005 | 5.66% | $2,748,110 | $38,147 | 5.58% | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | | Total interest-bearing liabilities | $2,246,016 | $15,101 | 2.73% | $2,229,143 | $16,602 | 3.00% | | Net interest income (tax equivalent) | | $23,904 | | | $21,545 | | | Net interest spread | | | 2.93% | | | 2.58% | | Net interest income as a percentage of average interest-earning assets | | | 3.47% | | | 3.15% | Net Interest Margin Analysis (Six Months) This table details average balances, interest, yields, and rates for H1 2025 and 2024, illustrating net interest spread and margin trends | (dollars in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | | | Average Balance | Interest | Rate | Average Balance | Interest | Rate | | ASSETS | | | | | | | | Total interest-earning assets | $2,829,412 | $78,267 | 5.58% | $2,779,883 | $76,330 | 5.52% | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | | Total interest-bearing liabilities | $2,284,144 | $31,113 | 2.75% | $2,255,317 | $33,577 | 2.99% | | Net interest income (tax equivalent) | | $47,154 | | | $42,753 | | | Net interest spread | | | 2.83% | | | 2.53% | | Net interest income as a percentage of average interest-earning assets | | | 3.36% | | | 3.09% | Loan Portfolio and Asset Quality Summary This table details the loan portfolio by type, non-performing assets, and allowance for credit losses over several quarters | (In Thousands) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | :------------------------------------ | :------------ | :------------- | :---------------- | :----------------- | :------------ | | Real estate: | | | | | | | Residential | $341,671 | $350,221 | $351,398 | $353,254 | $354,588 | | Commercial | 1,151,585 | 1,117,240 | 1,121,435 | 1,110,548 | 1,110,269 | | Agricultural | 331,995 | 329,985 | 327,722 | 331,734 | 327,057 | | Construction | 138,307 | 168,896 | 164,326 | 178,706 | 180,157 | | Consumer | 46,933 | 129,943 | 133,207 | 143,064 | 70,542 | | Other commercial loans | 150,171 | 137,529 | 131,310 | 134,285 | 130,851 | | Other agricultural loans | 28,366 | 28,488 | 29,662 | 24,537 | 26,247 | | State & political subdivision loans | 52,727 | 53,361 | 54,182 | 54,874 | 56,005 | | Total loans | $2,241,755 | $2,315,663 | $2,313,242 | $2,331,002 | $2,255,716 | | Less: allowance for credit losses - loans | 22,109 | 22,081 | 21,699 | 21,695 | 22,797 | | Net loans | $2,219,646 | $2,293,582 | $2,291,543 | $2,309,307 | $2,232,919 | | Past due and non-performing assets | | | | | | | Non-accrual loans | $24,595 | $23,545 | $25,701 | $20,858 | $14,949 | | Non-performing loans | $24,942 | $24,938 | $25,977 | $21,559 | $15,234 | | Other real estate owned | 2,434 | 2,544 | 2,635 | 2,486 | 2,690 | | Total Non-performing assets | $27,376 | $27,482 | $28,612 | $24,045 | $17,924 | | Analysis of the Allowance for Credit Losses - Loans | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | | Balance, beginning of period | $22,081 | $21,699 | $21,695 | $22,797 | $21,598 | | Net charge-offs | (571) | (156) | (86) | (1,202) | (675) | | Provision for credit losses - loans | 599 | 538 | 90 | 100 | 1,874 | | Balance, end of period | $22,109 | $22,081 | $21,699 | $21,695 | $22,797 | GAAP to Non-GAAP Reconciliation This section reconciles GAAP and non-GAAP financial measures, including tangible equity and returns, for three and six-month periods | | As of June 30, 2025 | As of June 30, 2024 | | :-------------------------------- | :------------------ | :------------------ | | Tangible Equity (in thousands) | | | | Stockholders Equity - GAAP | $313,653 | $286,470 | | Intangible Assets | (88,288) | (89,002) | | Tangible Equity - Non-GAAP | 225,365 | 197,468 | | Tangible Book value per share - Non-GAAP | $46.88 | $41.08 | | Return on Average Tangible Equity | For the Three Months Ended June 30, 2025 | For the Three Months Ended June 30, 2024 | | Average Tangible Equity - Non-GAAP (in thousands) | 222,851 | 196,065 | | Annualized Return on Average Tangible Equity Non-GAAP | 15.19% | 10.76% | | | For the Six Months Ended June 30, 2025 | For the Six Months Ended June 30, 2024 | | Average Tangible Equity - Non-GAAP (in thousands) | 219,599 | 194,614 | | Annualized Return on Average Tangible Equity Non-GAAP | 14.65% | 12.64% | | Net Income excluding sale of Braavo assets, net of legal fees and provision associated with Braavo loans remaining after sale - Non-GAAP (in thousands) | For the Three Months Ended June 30, 2025 | For the Three Months Ended June 30, 2024 | | Net Income - GAAP | $8,463 | $5,275 | | After tax provision associated with Braavo loans remaining after sale | - | 898 | | Net Income excluding one time items - Non-GAAP | $8,463 | $6,173 | | Basic and Diluted earnings per share, Excluding sale of Braavo assets, net of legal fees, provision associated with Braavo loans remaining after sale, net of tax - Non-GAAP | $1.76 | $1.29 | | | For the Six Months Ended June 30, 2025 | For the Six Months Ended June 30, 2024 | | Net Income - GAAP | $16,084 | $12,299 | | After tax gain on sale of Braavo, net of legal fees | - | (712) | | After tax provision associated with Braavo loans remaining after sale | - | 1,427 | | Net Income excluding one time items - Non-GAAP | $16,084 | $13,014 | | Basic and Diluted earnings per share, Excluding sale of Braavo assets, net of legal fees, provision associated with Braavo loans remaining after sale, net of tax - Non-GAAP | $3.35 | $2.71 | | Reconciliation of net interest income on fully taxable equivalent basis (in thousands) | For the Three Months Ended June 30, 2025 | For the Three Months Ended June 30, 2024 | | Net interest income | $23,648 | $21,300 | | Tax equivalent adjustment | 256 | 245 | | Net interest income (fully taxable equivalent) - Non-GAAP | $23,904 | $21,545 | | | For the Six Months Ended June 30, 2025 | For the Six Months Ended June 30, 2024 | | Net interest income | $46,650 | $42,258 | | Tax equivalent adjustment | 504 | 495 | | Net interest income (fully taxable equivalent) - Non-GAAP | $47,154 | $42,753 |