CITIZENS FINANCIAL SERVICES, INC.
Reconciliation of GAAP and Non-GAAP Financial Measures
(UNAUDITED)
(Dollars in thousands, except per share data)
As of
June 30,
2024
2023
Tangible Equity
Stockholders Equity – GAAP
$ 286,470
$ 263,228
Accumulated other comprehensive loss
Intangible Assets
(89,002)
(88,829)
Tangible Equity – Non-GAAP
197,468
174,399
Shares outstanding adjusted for June 2024 stock Dividend
4,759,486
4,753,357
Tangible Book value per share – Non-GAAP
$ 41.49
$ 36.69
As of
June 30
2024
2023
Tangible Equity per share
Stockholders Equity per share – GAAP
$ 60.19
$ 55.38
Adjustment for intangible assets
(18.70)
(18.69)
Tangible Book value per share – Non-GAAP
$ 41.49
$ 36.69
For the Three Months Ended
For the Six Months Ended
June 30
June 30
2024
2023
2024
2023
Return on Average Tangible Equity
Average Stockholders Equity – GAAP
$ 285,184
$ 221,557
$ 283,834
$ 214,753
Average Intangible Assets
(89,119)
(41,189)
(89,220)
(36,922)
Average Tangible Equity – Non-GAAP
196,065
180,368
194,614
177,831
Net Income (Loss) – GAAP
$ 5,275
$ (4,144)
$ 12,299
$ 2,723
Annualized Return on Average Tangible Equity Non-GAAP
10.76 %
-9.19 %
12.64 %
3.06 %
For the Three Months Ended
For the Six Months Ended
June 30
June 30
2024
2023
2024
2023
Return on Average Assets and Equity Excluding sale of Braavo assets, net
of legal fees, provision associated with Braavo loans remaining after sale
and merger and acquisition costs
Net Income (Loss) – GAAP
$ 5,275
$ (4,144)
$ 12,299
$ 2,723
After tax gain on sale of Braavo, net of legal fees
–
–
(712)
–
After tax provision associated with Braavo loans remaining after sale
898
–
1,427
–
After tax provision for credit losses – acquisition day 1 non-PCD
–
3,627
–
3,627
After Tax merger and acquisition costs
–
6,793
–
7,017
Net Income excluding merger and acquisition costs – Non-GAAP
$ 6,173
$ 6,276
$ 13,014
$ 13,367
Average Assets
2,973,890
2,432,795
2,992,357
2,401,720
Annualized Return on Average assets, Excluding sale of Braavo assets, net
of legal fees, provision associated with Braavo loans remaining after sale, net of tax
and merger and acquisition costs – Non-GAAP
0.83 %
1.03 %
0.87 %
1.11 %
Average Stockholders Equity – GAAP
$ 313,384
$ 250,390
$ 311,142
$ 244,769
Annualized Return on Average stockholders equity, Excluding sale of Braavo assets, net
of legal fees, provision associated with Braavo loans remaining after sale, net of tax and
merger and acquisition costs – Non-GAAP
7.88 %
10.03 %
8.37 %
10.92 %
Average Tangible Equity – Non-GAAP
196,065
180,368
194,614
177,831
Annualized Return on Average Tangible Equity Excluding sale of Braavo assets, net of
legal fees, provision associated with Braavo loans remaining after sale, net of tax, and
merger and acquisition costs – Non-GAAP
12.59 %
13.92 %
13.37 %
15.03 %
For the Three Months Ended
For the Six Months Ended
June 30
June 30
2024
2023
2024
2023
Earnings per share, Excluding sale of Braavo assets, net of legal fees and
merger and acquisition costs
Net Income (Loss) – GAAP
$ 5,275
$ (4,144)
$ 12,299
$ 2,723
After tax gain on sale of Braavo, net of legal fees
–
–
(712)
–
After tax provision associated with Braavo loans remaining after sale
898
–
1,427
–
After tax provision for credit losses – acquisition day 1 non-PCD
–
3,627
–
3,627
After Tax merger and acquisition costs
–
6,793
–
7,017
Net income excluding one time items – Non-GAAP
$ 6,173
$ 6,276
$ 13,014
$ 13,367
Number of shares used in computation – basic
4,753,697
4,159,966
4,753,918
4,106,005
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, and merger
and acquisition costs – Non-GAAP
$ 1.30
$ 1.51
$ 2.74
$ 3.26
For the Three Months Ended
For the Six Months Ended
June 30
June 30
Reconciliation of net interest income on fully taxable equivalent basis
2024
2023
2024
2023
Total interest income
$ 37,902
$ 26,810
$ 127,118
$ 37,222
Total interest expense
16,602
8,889
46,858
3,231
Net interest income
21,300
17,921
80,260
33,991
Tax equivalent adjustment
245
268
1,055
469
Net interest income (fully taxable equivalent) – Non-GAAP
$ 21,545
$ 18,189
$ 81,315
$ 34,460