Citizens Financial Services, Inc. (OTC Pink: CZFS), parent company of First Citizens Community Bank, released its unaudited consolidated financial results for the three months and year ended Dec. 31, 2019.

Highlights

Citizens Financial Services, Inc. and MidCoast Community Bancorp, Inc. continue to prepare for the merger that is expected to close in the second quarter of 2020.

  • Net income was $19.5 million for 2019, which is 8.1% higher than 2018’s net income. The effective tax rate for 2019 was 16.4% compared to 15.9% for 2018 and was impacted by a reduction in tax-exempt income and non-deductible merger and acquisition-related expenses.
  • Net income was $5.0 million for the three months ended Dec. 31, 2019, which is 11.7% higher than the net income for 2018’s comparable period. The effective tax rate for the three months ended Dec. 31, 2019 was 16.6% compared to 15.8% in the comparable period in 2018.
  • Net interest income before the provision for loan losses was $49.9 million for the year ended Dec. 31, 2019, which was an increase of $2.8 million, or 5.8%, compared to 2018.
  • Net loan growth totaled $32.7 million in 2019, or 3.1%, while deposit growth was $26.0 million, or 2.2%.
  • Return on average equity for the three months (annualized) and the year ended Dec. 31, 2019 was 13.05% and 13.00%, respectively, compared to 12.65% and 13.00% for the three months (annualized) and the year ended Dec. 31, 2018, respectively.
  • Return on average tangible equity for the three months (annualized) and the year ended Dec. 31, 2019 was 15.52% and 15.58%, respectively, compared to 15.33% and 15.87% for the three months (annualized) and the year ended Dec. 31, 2018, respectively. (1)
  • Return on average assets for the three months (annualized) and the year ended Dec. 31, 2019 was 1.37% and 1.34%, respectively, compared to 1.27% and 1.29% for the three months (annualized) and the year ended Dec. 31, 2018, respectively.

Dividend declared

On Dec. 3, 2019, the board of directors declared a cash dividend of $0.450 per share, which was paid on Dec. 27, 2019 to shareholders of record at the close of business on Dec. 13, 2019. The quarterly cash dividend is an increase of 3.3% over the regular cash dividend of $0.436 per share declared one year ago, as adjusted for the 1% stock dividend declared in June 2019.

Citizens Financial Services, Inc. has nearly 1,700 shareholders, the majority of whom reside in markets where its offices are located.