Citizens Financial Services(US:CZFS)2025-11-06 21:08Financial Performance - Net income for the first nine months of 2025 was $26,089,000, an increase of 31.5% compared to $19,835,000 in the same period last year[116] - Basic earnings per share for the first nine months of 2025 was $5.44, representing a 31.4% increase from $4.14 in the prior year[116] - For the three months ended September 30, 2025, net income was $10,005,000, an increase of 32.8% from $7,536,000 in the comparable 2024 period[117] - Basic earnings per share for the three months ended September 30, 2025 were $2.09, a 33.1% increase from $1.57 in the same period last year[117] Net Interest Income - Net interest income for the first nine months of 2025 was $71,790,000, an increase of $8,208,000 or 12.9% compared to the same period in 2024[119] - Net interest income after the provision for credit losses for the first nine months of 2025 was $69,915,000, compared to $60,995,000 in the first nine months of 2024[119] - Net interest income for the third quarter of 2025 was $25,140,000, an increase of $3,816,000 or 17.9% over the comparable period in 2024[120] - Net interest income after the provision for credit losses for the third quarter of 2025 was $24,640,000, compared to $21,524,000 in 2024[120] Credit Losses - The provision for credit losses for the first nine months of 2025 was $1,875,000, down from $2,587,000 in the same period of 2024[119] - Provision for credit losses for the nine-month period ended September 30, 2025, was $1,875,000, a decrease of $712,000 from the $2,587,000 provision recorded in the same period last year[142] - The allowance for credit losses on loans increased to $22,454,000 (0.96% of total loans) as of September 30, 2025, up from $21,699,000 (0.94%) as of December 31, 2024[168] - The company reported a net charge-off of $730,000 for the first nine months of 2025, with minimal charge-offs in other segments[169] Assets and Liabilities - Total assets increased to $3,031,786 thousand as of September 30, 2025, compared to $2,996,076 thousand in 2024, reflecting a growth of 1.2%[122] - Total deposits increased by $29.2 million to $2.41 billion since year-end 2024[154] - Borrowed funds decreased to $279.6 million as of September 30, 2025, down from $297.7 million as of December 31, 2024, due to increased deposit levels[186] - The average balance of total interest-bearing liabilities was $2,271,526 thousand, with an average rate of 2.72% for the nine months ended September 30, 2025[122] Investment Portfolio - Total investment securities increased to $487,077 thousand, with taxable securities generating $8,607 thousand in interest, up from $6,202 thousand in 2024[122] - The investment portfolio increased by $25.5 million, or 6.0%, from December 31, 2024 to September 30, 2025[157] - The company purchased $46.3 million of mortgage-backed securities, $21.1 million of state and political subdivision bonds, and $1.0 million of corporate obligations during 2025[157] Non-Interest Income and Expenses - Non-interest income for the nine months ended September 30, 2025, totaled $10,946,000, a decrease of $1,116,000 compared to the same period in 2024[145] - Non-interest expenses decreased by $209,000 for the nine months ended September 30, 2025, compared to the same period in 2024[148] Capital and Equity - Total stockholders' equity rose to $327.682 million at September 30, 2025, an increase of $27.948 million, or 9.3%, from $299.734 million at December 31, 2024[189] - The Company reported net income of $26.089 million for the first nine months of 2025, with cash dividends declared totaling $7.146 million, resulting in a payout ratio of 27.4%[189] Risk Management - The company has implemented heightened risk management procedures for its commercial real estate portfolio due to concentration risks[163] - The company employs a disciplined loan review process to assess credit quality and identify problem loans, with external reviews conducted semi-annually[170] - The Company utilizes a computer simulation model to measure the impact of interest rate changes on net interest income, which is part of its risk management strategy[206] Liquidity - Citizens Financial Services, Inc. had liquid assets of approximately $4.2 million as of September 30, 2025, to meet its own liquidity needs[201] - The Bank had a maximum borrowing capacity at the Federal Home Loan Bank (FHLB) of approximately $1.09 billion, with $455.8 million outstanding as of September 30, 2025[200] Market Presence - The company opened a new office in Williamsport, Pennsylvania, in Q4 2023 to enhance market presence in central Pennsylvania[161]