Citizens Financial Services Inc (CZFS)

CITIZENS FINANCIAL SERVICES, INC. REPORTS UNAUDITED FIRST QUARTER 2026 FINANCIAL RESULTSApril 29, 2026 7:05 AM
PR Newswire (US)

MANSFIELD, Pa., April 29, 2026 /PRNewswire/ -- Citizens Financial Services, Inc (Nasdaq: CZFS), parent company of First Citizens Community Bank (the "Bank"), released today its unaudited consolidated financial results for the three months ended March 31, 2026.HighlightsNet income was $10.4 million for the three months ended March 31, 2026, which is 36.15% more than the net income for 2025's comparable period. The increase was driven by the increase in net interest income before the provision for credit losses of $3.1 million. The effective tax rate for the three months ended March 31, 2026 was 18.3% compared to 19.1% in the comparable period in 2025, with the decrease due to increases in nontaxable interest income and earnings on BOLI due to the purchase of additional insurance policies in the first quarter of 2026.Net interest income before the provision for credit losses was $26.1 million for the three months ended March 31, 2026, an increase of $3,111,000, or 13.5%, over the same period a year ago and was primarily due to an increase in loan interest income and a decrease in interest expense on deposits and borrowings.Return on average equity for the three months (annualized) ended March 31, 2026 was 12.03% compared to 10.00% for the three months (annualized) ended March 31, 2025.Return on average tangible equity for the three months (annualized) ended March 31, 2026 was 16.15% compared to 14.09% for the three months (annualized) ended March 31, 2025 (non-GAAP). (1)Return on average assets for the three months (annualized) ended March 31, 2026 was 1.34% compared to 1.00% for the three months (annualized) ended March 31, 2025.Non-performing assets increased $10,914,000 since December 31, 2025 and totaled $40,103,000 as of March 31, 2026, which is $12,621,000 higher than the balance as of March 31, 2025. The increase from December 31, 2025 is due to four commercial real estate loan relationships being placed on non-accrual status during the first quarter of 2026 due to becoming more than 90 days past due.  The Bank's continued strategy for certain acquired loans is to either improve the credit metrics of the non-performing loans or sell the underlying collateral or have the customers refinance the loans with another institution. As a percent of loans, non-performing assets totaled 1.74%, 1.24% and 1.19% as of March 31, 2026, December 31, 2025 and March 31, 2025, respectively. While non-performing assets have increased significantly as of March 31, 2026 when compared to December 31, 2025 and March 31, 2025, specific reserves for these assets have remained stable at $1,862,000, $1,912,758 and $1,603,000 at March 31, 2026, December 31, 2025 and March 31, 2025, respectively.First Quarter of 2026 Compared to the First Quarter of 2025For the three months ended March 31, 2026, net income totaled $10,376,000 which compares to net income of $7,621,000 for the comparable period of 2025, an increase of $2,755,000 or 36.2%.  Basic earnings per share of $2.16 for the three months ended March 31, 2026 compares to $1.59 for the 2025 comparable period. Annualized return on equity for the three months ended March 31, 2026 and 2025 was 12.03% and 10.00%, while annualized return on assets was 1.34% and 1.00%, respectively.Net interest income before the provision for credit losses for the three months ended March 31, 2026 totaled $26,113,000 compared to $23,002,000 for the three months ended March 31, 2025, resulting in an increase of $3,111,000, or 13.5%. Average interest earning assets increased $26.4 million for the three months ended March 31, 2026 compared to the same period last year, primarily due to organic growth in our commercial and agricultural loan portfolios offset by decreases in consumer loans. During the first quarter of 2026, the Company recovered $683,000 in previously charged-off interest that offset the charged-off interest related to the loans placed on non-accrual status during the first quarter of 2026. The tax effected net interest margin for the three months ended March 31, 2026 was 3.72% compared to 3.30% for the same period last year. The yield on interest earning assets increased 14 basis points to 5.71%, while the cost of interest bearing liabilities decreased 34 basis points to 2.46%.The provision for credit losses for the first quarter of 2025 of $500,000 was driven by the annual update of loss drivers, which includes historical loss data, as well as prepayment and curtailment speeds and the potential impact of the Iran war compared to $625,000 for the first quarter of 2025, which was driven by the annual updates for 2025.Total non-interest income was $3,690,000 for the three months ended March 31, 2026, $263,000 more than the comparable period last year.  The primary driver of the increase was an increase in earning on bank owned life insurance of $224,000, as the result of purchasing $22,000,000 of additional insurance in the first quarter of 2026.Total non-interest expenses for the three months ended March 31, 2026 totaled $16,601,000 compared to $16,378,000 for the same period last year, which is an increase of $223,000, or 1.4%.The provision for income taxes increased $521,000 when comparing the three months ended March 31, 2026 to the same period in 2025. This increase was attributable to an increase in income before provision for income taxes of $3,276,000.  The effective tax rate was 18.3% and 19.1% for the three months ended March 31, 2026 and 2025, respectively.Balance Sheet and Other Information:At March 31, 2026, total assets were $3.03 billion compared to $3.06 billion at December 31, 2025 and $3.02 billion at March 31, 2025. The loan to deposit ratio as of March 31, 2026 was 94.14% compared to 98.89% as of December 31, 2025 and 97.92% as of March 31, 2025.Available for sale securities of $448.3 million at March 31, 2026 increased $3.5 million from December 31, 2025 and $17.6 million from March 31, 2025. The yield on the investment portfolio increased from 2.85% to 3.35% on a tax equivalent basis due to securities purchased during a higher rate environment and lower yielding securities maturing. Investment activity for 2026 has focused on replacing securities as they mature.  Net loans totaled $2.28 billion at March 31, 2026 in comparison to $2.33 billion as of December 31, 2025 and $2.29 billion at March 31, 2025.  The decrease since December 31, 2025 and March 31, 2025 of $68.6 million and $89.7 million, respectively, was due to the seasonal decrease in student loans that typically occurs late in the first quarter or early in the second quarter. A large component of the increase in commercial loans was due to construction loans being transferred via a permanent financing arrangement. In addition, we continue to see strong demand in commercial real estate in our south eastern Pennsylvania and Delaware markets.  The allowance for credit losses - loans totaled $22,894,000 at March 31, 2026 which is an  increase of $88,000 from December 31, 2025 due to changes in expected prepayment and curtailment speeds, economic forecasts and the Iran war. The provision for credit losses on loans was $144,000 for the first quarter of 2026. Loan recoveries and charge-offs were $22,000 and $78,000, respectively, for the three months ended March 31, 2026. The allowance as a percent of total loans was 1.00% as of March 31, 2026 and 0.97% as of December 31, 2025.Deposits increased $64.2 million from December 31, 2025, to $2.44 billion at March 31, 2026, with the increase driven by an increase in brokered deposits of $52.8 million, which total $112.8 million at March 31, 2026. The increase in brokered deposits was to offset the seasonal decrease in municipal deposits. Competitive pressure for deposits remains high.Borrowed funds totaled $198.7 million as of March 31, 2026, a $110.7 million decrease from December 31, 2025 due to the decrease in loans and increase in deposits.  Stockholders' equity totaled $343.6 million at March 31, 2026, compared to $338.1 million at December 31, 2025, an increase of $5.5 million. Excluding accumulated other comprehensive loss (AOCL), stockholders' equity increased $7.8 million and totals $358.3 million (non-GAAP). The increase in stockholders' equity, excluding AOCL, was attributable to net income for the three months ended March 31, 2026 totaling $10.4 million, offset by cash dividends for the first quarter totaling $2.4 million. As a result of increases in market interest rates impacting the fair value of investment securities and swaps, AOCL increased $2.3 million from December 31, 2025.Dividend DeclaredOn March 2, 2026, the Board of Directors declared a cash dividend of $0.50 per share, which was paid on March 27, 2026 to shareholders of record at the close of business on March 13, 2026. This quarterly cash dividend is an increase of 2.0% over the regular cash dividend of $0.49 per share declared one year ago, as adjusted for the 1% stock dividend declared in June 2025.    Citizens Financial Services, Inc. has nearly 1,790 shareholders, the majority of whom reside in markets where its offices are located.Note: This press release may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995.  These statements are not historical facts; rather, they are statements based on the Company's current expectations regarding its business strategies and their intended results and its future performance.  Forward-looking statements are preceded by terms such as "expects," "believes," "anticipates," "intends" and similar expressions.  Forward-looking statements are not guarantees of future performance.  Numerous risks and uncertainties could cause or contribute to the Company's actual results, performance and achievements to be materially different from those expressed or implied by the forward-looking statements. Factors that may cause or contribute to these differences include, without limitation, changes in general economic conditions, including changes in market interest rates and changes in monetary and fiscal policies of the federal government; legislative and regulatory changes; and other factors disclosed periodically in the Company's filings with the Securities and Exchange Commission.  Because of the risks and uncertainties inherent in forward-looking statements, readers are cautioned not to place undue reliance on them, whether included in this press release or made elsewhere periodically by the Company or on its behalf.  The Company assumes no obligation to update any forward-looking statements except as may be required by applicable law or regulation.(1)     See reconciliation of GAAP and non-GAAP measures at the end of the press release.CITIZENS FINANCIAL SERVICES, INC.


CONSOLIDATED FINANCIAL HIGHLIGHTS


(UNAUDITED)


(Dollars in thousands, except per share data)



As of or For The

Three Months Ended

March 31,

20262025
Income and Performance Ratios


Net Income$            10,376$          7,621
Return on average assets (annualized)1.34 %1.00 %
Return on average equity (annualized)12.03 %10.00 %
Return on average tangible equity (annualized) (a)16.15 %14.09 %
Net interest margin (tax equivalent) (a)3.72 %3.30 %
Earnings per share - basic (b)$                2.16$            1.59
Earnings per share - diluted (b)$                2.16$            1.59
Cash dividends paid per share (b)$              0.500$          0.490
Number of shares used in computation - basic (b)4,798,1704,797,611
Number of shares used in computation - diluted (b)4,799,0784,799,016








Asset quality


Allowance for credit losses - loans$            22,894$        22,081
Non-performing assets$            40,103$        27,482
Allowance for credit losses - loans to total loans1.00 %0.95 %
Non-performing assets to total loans1.74 %1.19 %
Annualized net charge-offs to total loans0.01 %0.03 %








Equity


Book value per share (b)$              71.51$          64.14
Tangible book value per share (a) (b)$              53.23$          45.73
Market Value per share (last reported trade of month)                                   $              61.15$          58.05
Common shares outstanding4,804,9364,759,672








Other


Average Full Time Equivalent Employees386.4379.7
Loan to Deposit Ratio94.14 %97.92 %
Trust assets under management$          191,602$      178,007
Brokerage assets under management$          319,485$      397,204








Balance Sheet Highlights March 31,December 31,March 31,
202620252025



Assets$       3,026,478$    3,064,564$       3,016,338Investment securities450,120446,556432,438Loans (net of unearned income)2,298,2222,350,6222,315,663Allowance for credit losses - loans22,89422,80622,081Deposits2,441,1852,376,9792,364,854Stockholders' Equity343,578338,051308,296







(a) See reconcilation of GAAP and Non-GAAP measures at the end of the press release.
(b) Prior period amounts were adjusted to reflect stock dividends.

 CITIZENS FINANCIAL SERVICES, INC.


CONSOLIDATED BALANCE SHEET


(UNAUDITED)







March 31,December 31,March 31,(in thousands except share data)202620252025ASSETS:


Cash and due from banks:


  Noninterest-bearing$            26,798$          23,933$             28,127  Interest-bearing6,30710,3588,659Total cash and cash equivalents33,10534,29136,786



Interest bearing time deposits with other banks3,8203,8203,820



Equity securities1,8341,8151,737



Available-for-sale securities448,286444,741430,701



Loans held for sale5,8749,3936,054



Loans (net of allowance for credit losses - loans: $22,894 at March 31, 2026; 


    $22,806 at December 31, 2025 and $22,081 at March 31, 2025)2,275,3282,327,8162,293,582



Premises and equipment20,71520,99821,627Accrued interest receivable10,94110,69810,918Goodwill85,75885,75885,758Bank owned life insurance74,07151,50150,578Other intangibles2,0732,2212,707Fair value of derivative instruments - asset7,1046,9279,120Deferred tax asset12,24011,44014,436Other assets45,32953,14548,514



TOTAL ASSETS$       3,026,478$     3,064,564$        3,016,338



LIABILITIES:


Deposits:


  Noninterest-bearing$          509,638$        516,657$           505,826  Interest-bearing1,931,5471,860,3221,859,028Total deposits2,441,1852,376,9792,364,854Borrowed funds198,738309,448302,027Accrued interest payable3,7483,1303,143Fair value of derivative instruments - liability4,1864,1005,196Other liabilities35,04332,85632,822TOTAL LIABILITIES2,682,9002,726,5132,708,042STOCKHOLDERS' EQUITY:


Preferred Stock $1.00 par value; authorized


  3,000,000 shares; none issued in 2025 or 2024---Common stock


  $1.00 par value; authorized 25,000,000 shares at March 31, 2026, December 31, 2025 and      


  March 31, 2025: issued 5,256,083 at March 31, 2026 and 5,255,807 at December 31, 20255,2565,2565,208  and 5,207,824 at March 31, 2025147,986147,965145,010Retained earnings221,597213,623194,709Accumulated other comprehensive loss(14,682)(12,377)(20,239)Treasury stock, at cost:  451,147 shares at March 31, 2026, 448,727 shares 


  at December 31, 2025 and 448,152 shares at March 31, 2025(16,579)(16,416)(16,392)TOTAL STOCKHOLDERS' EQUITY343,578338,051308,296TOTAL LIABILITIES AND


   STOCKHOLDERS' EQUITY$       3,026,478$     3,064,564$        3,016,338 CITIZENS FINANCIAL SERVICES, INC.

CONSOLIDATED STATEMENT OF INCOME

(UNAUDITED)


Three Months Ended
March 31, (in thousands, except share and per share data)                                                  20262025INTEREST INCOME:

Interest and fees on loans$      36,362$       35,556Interest-bearing deposits with banks103143Investment securities:

    Taxable2,5112,339    Nontaxable879547    Dividends422429TOTAL INTEREST INCOME40,27739,014INTEREST EXPENSE:

Deposits11,30512,294Borrowed funds2,8593,718TOTAL INTEREST EXPENSE14,16416,012NET INTEREST INCOME26,11323,002Provision for credit losses500625NET INTEREST INCOME AFTER

    PROVISION FOR CREDIT LOSSES25,61322,377NON-INTEREST INCOME:

Service charges1,3241,291Trust235224Brokerage and insurance569683Gains on loans sold265272Equity security gains (losses), net19(11)Earnings on bank owned life insurance570346Other708622TOTAL NON-INTEREST INCOME3,6903,427NON-INTEREST EXPENSES:

Salaries and employee benefits10,27610,289Occupancy 1,4121,356Furniture and equipment287265Professional fees540517FDIC insurance expense395450Pennsylvania shares tax377319Amortization of intangibles106127Software expenses455432Other real estate owned expenses 196119Other2,5572,504TOTAL NON-INTEREST EXPENSES16,60116,378Income before provision for income taxes12,7029,426Provision for income tax expense 2,3261,805NET INCOME$      10,376$         7,621


PER COMMON SHARE DATA:

Net Income - Basic$          2.16$           1.59Net Income - Diluted$          2.16$           1.59Cash Dividends Paid $        0.500$         0.490


Number of shares used in computation - basic4,798,1704,797,611Number of shares used in computation - diluted4,799,0784,799,016  CITIZENS FINANCIAL SERVICES, INC.




QUARTERLY CONDENSED, CONSOLIDATED INCOME STATEMENT INFORMATION



(UNAUDITED)




(in thousands, except per share data)
Three Months Ended,


March 31,Dec 31,Sept 30,June 30,March 31,
20262025202520252025Interest income$      40,277$       41,151$       40,254$       38,749$       39,014Interest expense14,16414,94015,11415,10116,012Net interest income26,11326,21125,14023,64823,002Provision for credit losses500500500750625Net interest income after provision for credit losses25,61325,71124,64022,89822,377Non-interest income3,6713,3873,8203,6323,438Investment securities gains (losses), net19113433(11)Non-interest expenses16,60116,17316,08416,09716,378Income before provision for income taxes12,70212,93612,41010,4669,426Provision for income tax expense2,3262,4532,4052,0031,805Net income $      10,376$       10,483$       10,005$         8,463$         7,621Earnings Per Share - Basic$          2.16$          2.19$          2.09$          1.76$          1.59Earnings Per Share - Diluted$          2.16$          2.18$          2.09$          1.76$          1.59 CITIZENS FINANCIAL SERVICES, INC.CONSOLIDATED AVERAGE BALANCES, INTEREST, YIELDS AND RATES, AND NET INTEREST MARGIN ON A FULLY TAX-EQUIVALENT BASIS(UNAUDITED)

Three Months Ended March 31, 
20262025
Average
AverageAverage
Average
Balance (1)InterestRateBalance (1)InterestRate(dollars in thousands)$$%$$%ASSETS





Interest-bearing deposits at banks21,668741.3923,9851141.93Interest bearing time deposits at banks3,820293.083,820293.08Investment securities:





  Taxable358,3232,9333.27382,6402,7682.89  Tax-exempt (3)125,0511,1123.56103,0156932.69Investment securities483,3744,0453.35485,6553,4612.85Loans: (2)(3)(4)





  Residential mortgage loans338,4734,9415.92352,1945,0995.87  Construction loans89,8311,5266.89163,4402,9227.25  Commercial Loans1,414,75421,5056.161,274,45319,7796.29  Agricultural Loans376,0656,2606.75356,8684,7265.37  Loans to state & political subdivisions60,2206724.5353,7315173.90  Other loans97,7771,5956.62145,4502,6157.29  Loans, net of discount (2)(3)(4)2,377,12036,4996.232,346,13635,6586.16Total interest-earning assets2,885,98240,6475.712,859,59639,2625.57Cash and due from banks9,240

9,620

Bank premises and equipment20,932

21,545

Other assets194,190

175,273

Total non-interest earning assets224,362

206,438

Total assets3,110,344

3,066,034

LIABILITIES AND STOCKHOLDERS' EQUITY





Interest-bearing liabilities:





  Business Interest Checking25,443570.9117,640400.94  NOW accounts710,6943,3221.90739,8084,0542.22  Savings accounts288,7723380.47292,9813480.48  Money market accounts461,4742,9152.56417,9073,0252.94  Certificates of deposit540,2784,6733.51507,9444,8273.85Total interest-bearing deposits2,026,66111,3052.261,976,28012,2942.52Other borrowed funds304,1442,8593.81346,4163,7184.35Total interest-bearing liabilities2,330,80514,1642.462,322,69616,0122.80Demand deposits381,074

371,893

Other liabilities42,241

43,493

Total non-interest-bearing liabilities423,315

415,386

Stockholders' equity356,224

327,952

Total liabilities & stockholders' equity3,110,344

3,066,034

Net interest income
26,483

23,250
Net interest spread (5)

3.25 %

2.77 %Net interest income as a percentage





  of average interest-earning assets

3.72 %

3.30 %Ratio of interest-earning assets





  to interest-bearing liabilities

124 %

123 %






(1) Averages are based on daily averages.





(2) Includes loan origination and commitment fees.





(3) Tax exempt interest revenue is shown on a tax equivalent basis for proper comparison using




       a statutory federal income tax rate of 21% for 2026 and 2025. See reconciliation of GAAP and non-GAAP measures at the end 


       of the press release.


(4) Income on non-accrual loans is accounted for on a cash basis, and the loan balances are included in interest-earning assets.


(5) Interest rate spread represents the difference between the average rate earned on interest-earning assets




      and the average rate paid on interest-bearing liabilities.





 CITIZENS FINANCIAL SERVICES, INC.CONSOLIDATED SUMMARY OF LOANS BY TYPE; NON-PERFORMING ASSETS; and ALLOWANCE FOR CREDIT LOSSES(UNAUDITED)




(Excludes Loans Held for Sale)




(In Thousands)





March 31,December 31,September 30,June 30,March 31,
20262025202520252025Real estate:




  Residential$         336,066$        340,972$       344,790$       341,671$       350,221  Commercial1,249,9001,218,5141,180,6551,151,5851,117,240  Agricultural344,938347,448342,487331,995329,985  Construction83,21793,965107,867138,307168,896Consumer19,59288,210109,45822,364109,339Other commercial loans170,628179,166171,345174,740158,133Other agricultural loans30,00430,24727,14228,36628,488State & political subdivision loans63,87752,10051,64452,72753,361Total loans2,298,2222,350,6222,335,3882,241,7552,315,663Less: allowance for credit losses - loans22,89422,80622,45422,10922,081Net loans$      2,275,328$     2,327,816$    2,312,934$    2,219,646$    2,293,582





Past due and non-performing assets










Total Loans past due 30-89 days and still accruing$             7,056$            9,269$         13,228$         18,554$          9,632





Non-accrual loans$           37,670$          26,602$         20,523$         24,595$         23,545Loans past due 90 days or more and accruing75229373471,393Non-performing loans$           37,745$          26,831$         20,560$         24,942$         24,938Other real estate owned2,3582,3582,4342,4342,544Total Non-performing assets$           40,103$          29,189$         22,994$         27,376$         27,482


















Three Months EndedAnalysis of the Allowance for Credit Losses - LoansMarch 31,December 31,September 30,June 30,March 31,(In Thousands)20262025202520252025Balance, beginning of period$           22,806$          22,454$         22,109$         22,081$         21,699Charge-offs(78)(57)(20)(596)(185)Recoveries226172529Net charge-offs(56)(51)(3)(571)(156)Provision for credit losses - loans144403348599538Balance, end of period$           22,894$          22,806$         22,454$         22,109$         22,081 CITIZENS FINANCIAL SERVICES, INC.

Reconciliation of GAAP and Non-GAAP Financial Measures

(UNAUDITED)

(Dollars in thousands, except per share data)





As of 
March 31
20262025Tangible Equity

Stockholders' Equity - GAAP$          343,578$           308,296Intangible Assets(87,831)(88,465)Tangible Equity - Non-GAAP255,747219,831Shares outstanding adjusted for June 2025 stock Dividend4,804,9364,806,745Tangible Book value per share - Non-GAAP$              53.23$               45.73



As of 
March 31
20262025Tangible Equity per share

Stockholders' Equity per share - GAAP$              71.51$               64.14Adjustment for intangible assets(18.28)(18.41)Tangible Book value per share - Non-GAAP$              53.23$               45.73






For the Three Months Ended
March 31,
20262025Return on Average Assets Excluding Accumulated Other Comprehensive Loss (AOCL)

Average Assets - GAAP$       3,099,013$        3,042,963Average AOCL(11,331)(23,071)Average Assets, Excluding AOCL - Non-GAAP3,110,3443,066,034Net Income - GAAP$            10,376$               7,621Annualized Return on Average Assets-GAAP1.34 %1.00 %Annualized Return on Average Assets, Excluding AOCL - Non-GAAP1.33 %0.99 %



For the Three Months Ended
March 31,
20262025Return on Average Equity Excluding Accumulated Other Comprehensive Loss (AOCL)          

Average Stockholders' Equity - GAAP$          344,893$           304,881Average AOCL(11,331)(23,071)Average Stockholders' Equity, Excluding AOCL - Non-GAAP356,224327,952Net Income - GAAP$            10,376$               7,621Annualized Return on Average Stockholders' Equity-GAAP12.03 %10.00 %Annualized Return on Average Stockholders' Equity, Excluding AOCL - Non-GAAP11.65 %9.30 %



For the Three Months Ended
March 31,
20262025Return on Average Tangible Equity

Average Stockholders' Equity - GAAP$          344,893$           304,881Average Intangible Assets(87,916)(88,570)Average Tangible Equity - Non-GAAP256,977216,311Net Income - GAAP$            10,376$               7,621Annualized Return on Average Tangible Equity Non-GAAP16.15 %14.09 %



For the Three Months Ended
March 31,Reconciliation of net interest income on fully taxable equivalent basis20262025Total interest income$            40,277$             39,014Total interest expense14,16416,012Net interest income26,11323,002Tax equivalent adjustment370248Net interest income (fully taxable equivalent) - Non-GAAP$            26,483$             23,250 



View original content:https://www.prnewswire.com/news-releases/citizens-financial-services-inc-reports-unaudited-first-quarter-2026-financial-results-302756410.htmlSOURCE Citizens Financial Services, Inc.

Original: CITIZENS FINANCIAL SERVICES, INC. REPORTS UNAUDITED FIRST QUARTER 2026 FINANCIAL RESULTS

CITIZENS FINANCIAL SERVICES, INC. REPORTS UNAUDITED FULL YEAR AND FOURTH QUARTER 2025 FINANCIAL RESULTSJanuary 29, 2026 4:18 PM
PR Newswire (US)

MANSFIELD, Pa., Jan. 29, 2026 /PRNewswire/ -- Citizens Financial Services, Inc (Nasdaq: CZFS), parent company of First Citizens Community Bank (the "Bank"), released today its unaudited consolidated financial results for the three months and year ended December 31, 2025.HighlightsNet income was $36,572,000 for 2025, which is $8,754,000, or 31.5%, more than 2024's net income due to the increase in net interest income after the provision for credit losses of $11,758,000. The effective tax rate for 2025 was 18.9% compared to 17.4% in 2024.Net income was $10,483,000 for the three months ended December 31, 2025, which was $2,500,000 more than the net income for 2024's comparable period due to an increase in net interest income after the provision for credit losses of $2,838,000. The effective tax rate for the three months ended December 31, 2025 was 19.0% compared to 16.4% in the comparable period in 2024.Net interest income before the provision for credit losses was $98,001,000 for 2025, an increase of $11,546,000, or 13.4%, over 2024 and was primarily due to an increase in investment income and a decrease in interest expense.The provision for credit losses for the three months and the year ended December 31, 2025 was $500,000 and $2,375,000, respectively, compared to no provision and $2,587,000 for the three months and the year ended December 31, 2024, respectively. The provision for the 2025 periods was driven by the current economic forecasts and specific reserves for non-accrual loans at December 31, 2025. The provision for 2024 was significantly impacted by loans that were not sold as part of the sale of a division known as Braavo that occurred in the first quarter of 2024. The vast majority of the Braavo loans that were retained after the sale were originated by Huntington Valley Bank in 2023 prior to the acquisition and were current as of the acquisition date in 2023. The provision for 2024, directly attributable to these loans, was $1,806,000.Return on average equity for the three months (annualized) and the year ended December 31, 2025 was 12.53% and 11.51% compared to 10.63% and 9.59% for the three months (annualized) and the year ended December 31, 2024, respectively. If the provision for the credit losses attributable to the Braavo loans and the gain on the sale of Braavo are excluded, the return on average equity for the year ended December 31, 2024 would have been 9.84% (non-GAAP) (1).Return on average tangible equity (non-GAAP) for the three months (annualized) and the year ended December 31, 2025 was 17.01% and 15.94% compared to 15.10% and 13.84% for the three months (annualized) and the year ended December 31, 2024, respectively. If the provision for the credit losses attributable to the Braavo loans and the gain on the sale of Braavo are excluded, the return on average tangible equity for the year ended December 31, 2024 would have been 14.19% (annualized) (1).Return on average assets for the three months (annualized) and the year ended December 31, 2025 was 1.37% and 1.21% compared to 1.06% and 0.93% for the three months (annualized) and the year ended December 31, 2024, respectively. If the provision for the credit losses attributable to the Braavo loans and the gain on the sale of Braavo are excluded, the return on average assets for the year ended December 31, 2024 would have been 0.96% (non-GAAP). (1).Non-performing assets increased $578,000 since December 31, 2024 and totaled $29,190,000 as of December 31, 2025. During the fourth quarter of 2025, the Bank recognized additional interest income of $878,000 from payments associated with two relationships that were previously on non-accrual status, and charged-off interest of $577,000 related to two relationships being placed on non-accrual status in the fourth quarter. As a percent of total loans, non-performing assets totaled 1.24% as of December 31, 2025 and 2024.2025 Compared to 2024For 2025, net income totaled $36,572,000 which compares to net income of $27,818,000 for 2024, an increase of $8,754,000. Basic and diluted earnings per share were $7.62 for 2025 compared to $5.80 and $5.79 per share, respectively, for 2024. Return on equity for 2025 and 2024 was 11.51% and 9.59%, while return on assets was 1.21% and 0.93%, respectively. The increase in performance when comparing 2025 to 2024 was due to an increase in the net interest margin from 3.13% to 3.50%.Net interest income before the provision for credit losses for 2025 totaled $98,001,000 compared to $86,455,000 for 2024, an increase of $11,546,000, or 13.4%. Average interest earning assets increased $37,517,000 in 2025 compared to 2024, primarily due to an increase in taxable investments and average outstanding student loans. Average loans increased $19,425,000, while average investment securities increased $22,647,000. The yield on interest earning assets increased 10 basis points to 5.66%, while the cost of interest-bearing liabilities decreased 31 basis points to 2.69%. As a result, the tax effected net interest margin increased from 3.13% for 2024 to 3.50% for 2025.The provision for credit losses for 2025 was $2,375,000 compared to $2,587,000 for 2024, a decrease of $212,000. The provision for 2025 was driven by the economic forecasts and the annual update of loss drivers, which includes historical loss data, as well as prepayment and curtailment speeds. Additionally, the provision for 2025 was driven by specific loss reserves on two commercial real estate loans and one other commercial loan placed on non-accrual status in the fourth quarter of 2025. The provision for 2024 was impacted by the Braavo loans as previously mentioned and an increase in past due and classified loans during the second quarter of 2024.Total non-interest income was $14,344,000 for 2025, which is $1,057,000 less than the non-interest income of $15,401,000 for 2024. The primary drivers were the gain on the sale of assets associated with Braavo and earnings on bank owned life insurance due to the passing of a former employee in the first quarter of 2024.Total non-interest expenses for 2025 totaled $64,882,000 compared to $65,586,000 for 2024, which is a decrease of $704,000. Salary and benefit costs increased $55,000 due to additional healthcare expenses and post-employment benefits. There are 12 fewer FTEs in 2025 compared to 2024. The decrease in professional fees and software costs is due to the sale of the Braavo division in 2024.The provision for income taxes increased $2,651,000 when comparing 2025 to 2024 as a result of an increase in income before income tax of $11,405,000. The effective tax rate was 18.9% and 17.4% for 2025 and 2024, respectively.Three Months Ended December 31, 2025 Compared to 2024For the three months ended December 31, 2025, net income totaled $10,483,000 which compares to net income of $7,983,000 for the comparable period of 2024, an increase of $2,500,000 or 31.3%. Basic earnings per share of $2.19 for the three months ended December 31, 2025 compares to $1.66 for the 2024 comparable period. Annualized return on equity for the three months ended December 31, 2025 and 2024 was 12.53% and 10.63%, while annualized return on assets was 1.37% and 1.06%, respectively.Net interest income before the provision for credit losses for the three months ended December 31, 2025 totaled $26,211,000 compared to $22,873,000 for the three months ended December 31, 2024, resulting in an increase of $3,338,000, or 14.6%. Average interest earning assets increased $33,040,000 for the three months ended December 31, 2025 compared to the same period last year, primarily due to increases in the average balance of investments and loans. Average loans increased $16,828,000, while average investment securities increased $17,206,000. The tax effected net interest margin for the three months ended December 31, 2025 was 3.69% compared to 3.26% for the same period last year. The yield on interest earning assets increased 12 basis points to 5.77%, while the cost of interest-bearing liabilities decreased 35 basis points to 2.59%.The provision for credit losses for the fourth quarter of 2025 of $500,000 was driven by specific reserves on two commercial real estate loans and one other commercial loan placed on non-accrual status in the fourth quarter of 2025. There was no provision for credit losses recorded during the three months ended December 31, 2024.Total non-interest income was $3,398,000 for the three months ended December 31, 2025, which was $59,000 more than the comparable period last year. The primary driver of the increase was an increase in derivative income of $75,000.Total non-interest expenses for the three months ended December 31, 2025 totaled $16,173,000 compared to $16,668,000 for the same period last year, which is a decrease of $495,000, or 3.0%. Salary and employee benefits decreased due to a decrease in headcount of 11 FTEs, commission expense, profit sharing and vacation costs. The decrease in shares tax expense is due to timing and level of charitable contributions that are included in other expenses that generate tax credits utilized by Bank on its Pennsylvania shares tax return.The provision for income taxes increased $892,000 when comparing the three months ended December 31, 2025 to the same period in 2024. This increase was attributable to increase in income before provision for income taxes of $3,392,000. The effective tax rate was 19.0% and 16.4% for the three months ended December 31, 2025 and 2024, respectively.Balance Sheet and Other Information:At December 31, 2025, total assets were $3.06 billion, compared to $3.03 billion at December 31, 2024. The loan to deposit ratio as of December 31, 2025 was 98.89% compared to 97.11% as of December 31, 2024.Available for sale securities of $444.7 million at December 31, 2025 increased $18.8 million from December 31, 2024. The yield on the investment portfolio increased from 2.44% to 3.06% on a tax equivalent basis due to securities purchased during a higher rate environment and lower yielding securities maturing. Investment activity for 2025 has focused on replacing securities as they mature with the exception of the purchase of $20.3 million of municipal securities in the third quarter of 2025.Net loans of $2.33 billion at December 31, 2025 increased of $36.3 million from December 31, 2024, primarily due to an increase in commercial loan activity offset by a decrease in student loans outstanding. The decrease construction loans of $74.9 million is the result of projects in our Delaware market and the southeast Pennsylvania market being completed and the related construction loans either transferring to other portfolios or being paid off.The allowance for credit losses - loans totaled $22,806,000 at December 31, 2025 which is an increase of $1,107,000 from December 31, 2024. The provision for credit losses in 2025 was based on the economic forecasts and changes in expected prepayment speeds, as well as specific reserves for loans placed on non-accrual status in the fourth quarter of 2025. The provision for credit losses on loans was $1,888,000 for 2025 compared to $3,176,000 for 2024. The provision for off-balance sheet items was $487,000 for 2025 compared to a credit of ($589,000) for 2024. Loan recoveries and charge-offs were $77,000 and $858,000, respectively, for 2025 compared to loan recoveries and charge-offs of $43,000 and $2,673,000, respectively for 2024. For the three months ended December 31, 2025, loan recoveries and charge-offs were $6,000 and $57,000, respectively. The allowance for credit losses as a percent of total loans was 0.97% as of December 31, 2025 and 0.94% as of December 31, 2024.Non-performing assets totaled $29.2 million as of December 31, 2025, an increase of $578,000 since December 31, 2024. The increase was driven by two large commercial relationships being placed on non-accrual status during the fourth quarter of 2025, which offset significant pay-offs of non-accrual loans that occurred in the first three quarters of 2025.Deposits decreased $5.0 million from December 31, 2024, to $2.40 billion at December 31, 2025. Competitive pressure for deposits remains high. Brokered CD's have decreased $33.1 million since December 31, 2024. Additionally, a school district in our southeastern Pennsylvania market saw a decrease in their balance of $58.9 million due to the lack of state budget for parts of 2025. At December 31, 2025, the Bank estimates that deposit balances held by customers in excess of the FDIC insurance limit ($250,000 per insured account) totaled $1.16 billion, or 47.3% of the Bank's total deposits. Included in this balance are balances held through Intrafi, which provides customers with additional FDIC insurance, as well as deposits collateralized by securities or letters of credit (almost exclusively municipal deposits). The total of these items was $647.7 million, or 27.2% of the Bank's total deposits, as of December 31, 2025.Borrowed funds totaled $309.4 million as of December 31, 2025, a $11.7 million increase from December 31, 2024, due to a decrease in deposits and increases in loans and investments in 2025.Stockholders' equity totaled $338.1 million at December, 2025, compared to $299.7 million at December 31, 2024, an increase of $38.3 million. Excluding accumulated other comprehensive loss (AOCL), stockholders' equity increased $27.2 million and totals $350.4 million (non-GAAP). The increase in stockholders' equity was attributable to net income for 2025 totaling $36.6 million, offset by cash dividends for 2025 totaling $9.5 million. As a result of decreases in market interest rates impacting the fair value of investment securities and swaps, stockholders' equity increased due to a decrease in AOCL of $11.1 million from December 31, 2024.Dividend DeclaredOn December 2, 2025, the Board of Directors declared a cash dividend of $0.50 per share, which was paid on December 26, 2025 to shareholders of record at the close of business on December 12, 2025. This quarterly cash dividend is an increase of 3.1% over the quarterly cash dividend of $0.485 per share declared one year ago, as adjusted for the 1% stock dividend declared in June 2025.    Citizens Financial Services, Inc. has nearly 1,800 shareholders, the majority of whom reside in markets where its offices are located.Note: This press release may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995.  These statements are not historical facts; rather, they are statements based on the Company's current expectations regarding its business strategies and their intended results and its future performance.  Forward-looking statements are preceded by terms such as "expects," "believes," "anticipates," "intends" and similar expressions.  Forward-looking statements are not guarantees of future performance.  Numerous risks and uncertainties could cause or contribute to the Company's actual results, performance and achievements to be materially different from those expressed or implied by the forward-looking statements. Factors that may cause or contribute to these differences include, without limitation, changes in general economic conditions, including changes in market interest rates and changes in monetary and fiscal policies of the federal government; legislative and regulatory changes; and other factors disclosed periodically in the Company's filings with the Securities and Exchange Commission.  Because of the risks and uncertainties inherent in forward-looking statements, readers are cautioned not to place undue reliance on them, whether included in this press release or made elsewhere periodically by the Company or on its behalf.  The Company assumes no obligation to update any forward-looking statements except as may be required by applicable law or regulation.(1)  See reconciliation of GAAP and Non-GAAP measures at the end of the press releaseCITIZENS FINANCIAL SERVICES, INC.



CONSOLIDATED FINANCIAL HIGHLIGHTS



(UNAUDITED)



(Dollars in thousands, except per share data)




As of or For TheAs of or For The
Three Months EndedYear Ended
December 31,December 31,
2025202420252024Income and Performance Ratios



Net Income$            10,483$          7,983$           36,572$         27,818Return on average assets (annualized)1.37 %1.06 %1.21 %0.93 %Return on average equity (annualized)12.53 %10.63 %11.51 %9.59 %Return on average tangible equity (annualized) (a)17.01 %15.10 %15.94 %13.84 %Net interest margin (tax equivalent) (a)3.69 %3.26 %3.50 %3.13 %Earnings per share - basic (b)$                2.19$            1.66$               7.62$            5.80Earnings per share - diluted (b)$                2.18$            1.66$               7.62$            5.79Cash dividends paid per share (b)$              0.500$          0.485$             1.980$          1.931Number of shares used in computation - basic (b)4,796,7174,797,1354,797,5204,797,258Number of shares used in computation - diluted (b)4,798,1944,799,5784,800,0934,802,139









Asset quality



Allowance for credit losses - loans$            22,806$        21,699

Non-performing assets$            29,189$        28,612

Allowance for credit losses - loans to total loans0.97 %0.94 %

Non-performing assets to total loans1.24 %1.24 %

Annualized net charge-offs to total loans0.01 %0.01 %0.03 %0.11 %









Equity



Book value per share (b)$              70.32$          62.35

Tangible book value per share (a) (b)$              52.02$          43.91

Market value per share (Last reported trade of month)$              57.02$          63.31

Common shares outstanding4,807,0804,759,612











Other



Average Full Time Equivalent Employees377.9388.5379.8392.0Loan to Deposit Ratio98.89 %97.11 %

Trust assets under management$          194,841$      180,710

Brokerage assets under management$          317,895$      395,869











Balance Sheet Highlights December 31,December 31,


20252024






Assets$       3,064,564$    3,025,724

Investment securities446,556427,659

Loans (net of unearned income)2,350,6222,313,242

Allowance for credit losses - loans22,80621,699

Deposits2,376,9792,382,028

Stockholders' Equity338,051299,734











(a) See reconciliation of GAAP and Non-GAAP measures at the end of the press release:

(b) Prior period amounts were adjusted to reflect stock dividends.


 CITIZENS FINANCIAL SERVICES, INC.

CONSOLIDATED BALANCE SHEET

(UNAUDITED)





December 31,December 31,(in thousands, except share data)20252024ASSETS:

Cash and due from banks:

  Noninterest-bearing$            23,933$          30,284  Interest-bearing10,35811,918Total cash and cash equivalents34,29142,202


Interest bearing time deposits with other banks3,8203,820


Equity securities1,8151,747


Available-for-sale securities444,741425,912


Loans held for sale9,3939,607


Loans (net of allowance for credit losses - loans: $22,806 at December 31, 2025; 

    $21,699 at December 31, 2024)2,327,8162,291,543


Premises and equipment20,99821,395Accrued interest receivable10,69810,307Goodwill85,75885,758Bank owned life insurance51,50150,341Other intangibles2,2212,892Fair value of derivative instruments - asset6,92710,370Deferred tax asset11,44015,199Other assets53,14554,631


TOTAL ASSETS$       3,064,564$     3,025,724


LIABILITIES:

Deposits:

  Noninterest-bearing$          516,657$        532,776  Interest-bearing1,860,3221,849,252Total deposits2,376,9792,382,028Borrowed funds309,448297,721Accrued interest payable3,1304,693Fair value of derivative instruments - liability4,1005,817Other liabilities32,85635,731TOTAL LIABILITIES2,726,5132,725,990STOCKHOLDERS' EQUITY:

Preferred Stock $1.00 par value; authorized

  3,000,000 shares; none issued in 2025 or 2024--Common stock

  $1.00 par value; authorized 25,000,000 shares at December 31, 2025, and 2024:      

   issued 5,255,807 shares at December 31, 2025 and 5,207,577 shares at December 31, 20245,2565,208Additional paid-in capital147,965144,984Retained earnings213,623189,443Accumulated other comprehensive loss(12,377)(23,521)Treasury stock, at cost:  448,727 shares at December 31, 2025 and 447,965 shares 

  at December 31, 2024(16,416)(16,380)TOTAL STOCKHOLDERS' EQUITY338,051299,734TOTAL LIABILITIES AND

   STOCKHOLDERS' EQUITY$       3,064,564$     3,025,724 CITIZENS FINANCIAL SERVICES, INC.



CONSOLIDATED STATEMENT OF INCOME



(UNAUDITED)




Three Months EndedYear  Ended
December 31,December 31,(in thousands, except share and per share data)2025202420252024INTEREST INCOME:



Interest and fees on loans$      37,229$       36,630$    144,430$   142,688Interest-bearing deposits with banks108156502851Investment securities:



    Taxable2,5792,1129,9107,135    Nontaxable8115242,6262,093    Dividends4243711,7001,550TOTAL INTEREST INCOME41,15139,793159,168154,317INTEREST EXPENSE:



Deposits11,80613,87547,05052,326Borrowed funds3,1343,04514,11715,536TOTAL INTEREST EXPENSE14,94016,92061,16767,862NET INTEREST INCOME26,21122,87398,00186,455Provision for credit losses500-2,3752,587NET INTEREST INCOME AFTER



    PROVISION (RELEASE) FOR CREDIT LOSSES25,71122,87395,62683,868NON-INTEREST INCOME:



Service charges1,3771,3565,5695,749Trust199187792816Brokerage and insurance5566082,6272,381Gains on loans sold5705962,2902,316Equity security gains, net111867145Earnings on bank owned life insurance3693501,4331,684Gain on sale of Braavo division---1,102Other3162241,5661,208TOTAL NON-INTEREST INCOME3,3983,33914,34415,401NON-INTEREST EXPENSES:



Salaries and employee benefits9,2139,72539,40239,347Occupancy 1,4411,2085,2995,013Furniture and equipment3532471,2091,038Professional fees8065782,3412,599FDIC insurance expense3704071,7101,996Pennsylvania shares tax(315)2487391,114Amortization of intangibles111132478564Software expenses5024451,8441,953Other real estate owned expenses (recovery)69(34)267212Other3,6233,71211,59311,750TOTAL NON-INTEREST EXPENSES16,17316,66864,88265,586Income before provision for income taxes12,9369,54445,08833,683Provision for income tax expense 2,4531,5618,5165,865NET INCOME$      10,483$         7,983$      36,572$     27,818




PER COMMON SHARE DATA:



Net Income - Basic$          2.19$           1.66$          7.62$        5.80Net Income - Diluted$          2.18$           1.66$          7.62$        5.79Cash Dividends Paid $        0.500$         0.485$        1.980$       1.931




Number of shares used in computation - basic4,796,7174,797,1354,797,5204,797,258Number of shares used in computation - diluted4,798,1944,799,5784,800,0934,802,139 CITIZENS FINANCIAL SERVICES, INC.




QUARTERLY CONDENSED, CONSOLIDATED INCOME STATEMENT INFORMATION



(UNAUDITED)




(in thousands, except per share data)Three Months Ended,
Dec 31,Sept 30,June 30,March 31,Dec 31,
20252025202520252024Interest income$      41,151$       40,254$       38,749$       39,014$       39,793Interest expense14,94015,11415,10116,01216,920Net interest income26,21125,14023,64823,00222,873Provision (release) for credit losses500500750625-Net interest income after provision (release) for credit losses25,71124,64022,89822,37722,873Non-interest income3,3873,8203,6323,4383,321Investment securities gains (losses), net113433(11)18Non-interest expenses16,17316,13416,14716,42816,668Income before provision for income taxes12,93612,36010,4169,3769,544Provision for income tax expense2,4532,3551,9531,7551,561Net income $      10,483$       10,005$         8,463$         7,621$         7,983Earnings Per Share - Basic$          2.19$          2.09$          1.76$          1.59$          1.66Earnings Per Share - Diluted$          2.18$          2.09$          1.76$          1.59$          1.66 CITIZENS FINANCIAL SERVICES, INC.CONSOLIDATED AVERAGE BALANCES, INTEREST, YIELDS AND RATES, AND NET INTEREST MARGIN ON A FULLY TAX-EQUIVALENT BASIS(UNAUDITED)

Three Months Ended December 31,
20252024
Average
AverageAverage
Average
Balance (1)InterestRateBalance (1)InterestRate(dollars in thousands)$$%$$%ASSETS





Interest-bearing deposits at banks16,686781.8517,6801262.84Interest bearing time deposits at banks3,820303.123,820303.12Investment securities:





  Taxable368,8513,0033.26368,2212,4832.70  Tax-exempt (3)119,9511,0273.42103,3756642.57Investment securities488,8024,0303.30471,5963,1472.67Loans: (2)(3)(4)





  Residential mortgage loans345,1345,3036.10355,1085,1465.77  Construction loans95,6071,7347.20173,4273,2767.51  Commercial Loans1,377,80221,7146.251,270,97820,1736.31  Agricultural Loans373,9646,2796.66355,5575,2755.90  Loans to state & political subdivisions51,9155223.9955,3335553.99  Other loans99,5121,7797.09116,7032,3137.89  Loans, net of discount (2)(3)(4)2,343,93437,3316.322,327,10636,7386.28Total interest-earning assets2,853,24241,4695.772,820,20240,0415.65Cash and due from banks9,709

9,088

Bank premises and equipment21,454

21,291

Other assets184,931

186,815

Total non-interest earning assets216,094

217,194

Total assets3,069,336

3,037,396

LIABILITIES AND STOCKHOLDERS' EQUITY





Interest-bearing liabilities:





  Business Interest Checking23,910470.7816,820400.95  NOW accounts723,8403,8632.12742,7844,6082.47  Savings accounts283,2893330.47289,7983670.50  Money market accounts487,7323,4552.81422,6243,3513.15  Certificates of deposit460,5524,1083.54544,3205,5094.03Total interest-bearing deposits1,979,32311,8062.372,016,34613,8752.74Other borrowed funds307,3783,1344.05273,6043,0454.43Total interest-bearing liabilities2,286,70114,9402.592,289,95016,9202.94Demand deposits394,474

395,714

Other liabilities40,223

29,545

Total non-interest-bearing liabilities434,697

425,259

Stockholders' equity347,938

322,187

Total liabilities & stockholders' equity3,069,336

3,037,396

Net interest income
26,529

23,121
Net interest spread (5)

3.18 %

2.71 %Net interest income as a percentage





  of average interest-earning assets

3.69 %

3.26 %Ratio of interest-earning assets





  to interest-bearing liabilities

125 %

123 %






(1) Averages are based on daily averages.





(2) Includes loan origination and commitment fees.





(3) Tax exempt interest revenue is shown on a tax equivalent basis for proper comparison using

       a statutory federal income tax rate of 21% for 2025 and 2024. See reconciliation of GAAP and non-gaap measures at the end 
       of the press release


(4) Income on non-accrual loans is accounted for on a cash basis, and the loan balances are included in interest-earning assets.(5) Interest rate spread represents the difference between the average rate earned on interest-earning assets




      and the average rate paid on interest-bearing liabilities.





 CITIZENS FINANCIAL SERVICES, INC.CONSOLIDATED AVERAGE BALANCES, INTEREST, YIELDS AND RATES, AND NET INTEREST MARGIN ON A FULLY TAX-EQUIVALENT BASIS(UNAUDITED)

Year Ended December 31,
20252024
Average
AverageAverage
Average
Balance (1)InterestRateBalance (1)InterestRate(dollars in thousands)$$%$$%ASSETS





Interest-bearing deposits at banks23,7673841.6228,2647302.58Interest bearing time deposits at banks3,8201183.093,8781213.09Investment securities:





  Taxable378,38711,6103.07359,7248,6852.41  Tax-exempt (3)109,1253,3243.05105,1412,6502.52Investment securities487,51214,9343.06464,86511,3352.44Loans: (2)(3)(4)





  Residential mortgage loans346,31320,8416.02356,29220,7585.83  Construction loans135,9209,7447.17182,71413,6077.45  Commercial Loans1,320,83684,0596.361,265,92280,8496.39  Agricultural Loans362,88021,2275.85350,58818,9785.41  Loans to state & political subdivisions52,7302,0713.9355,9192,2133.96  Other loans96,0976,8987.1883,9166,7178.00  Loans, net of discount (2)(3)(4)2,314,776144,8406.262,295,351143,1226.24Total interest-earning assets2,829,875160,2765.662,792,358155,3085.56Cash and due from banks9,727

9,306

Bank premises and equipment21,638

21,124

Other assets180,011

183,674

Total non-interest earning assets211,376

214,104

Total assets3,041,251

3,006,462

LIABILITIES AND STOCKHOLDERS' EQUITY





Interest-bearing liabilities:





  Business Interest Checking20,1481790.898,756881.01  NOW accounts718,18515,3612.14756,68919,1172.53  Savings accounts287,1621,3360.47296,2751,5320.52  Money market accounts453,54512,9192.85397,94212,4823.14  Certificates of deposit470,28517,2553.67481,86219,1073.97Total interest-bearing deposits1,949,32547,0502.411,941,52452,3262.70Other borrowed funds326,02614,1174.33323,40915,5364.80Total interest-bearing liabilities2,275,35161,1672.692,264,93367,8623.00Demand deposits387,914

385,702

Other liabilities40,650

40,593

Total non-interest-bearing liabilities428,564

426,295

Stockholders' equity337,336

315,234

Total liabilities & stockholders' equity3,041,251

3,006,462

Net interest income
99,109

87,446
Net interest spread (5)

2.97 %

2.56 %Net interest income as a percentage





  of average interest-earning assets

3.50 %

3.13 %Ratio of interest-earning assets





  to interest-bearing liabilities

124 %

123 %






(1) Averages are based on daily averages.





(2) Includes loan origination and commitment fees.





(3) Tax exempt interest revenue is shown on a tax equivalent basis for proper comparison using




       a statutory federal income tax rate of 21% for 2025 and 2024. See reconciliation of GAAP and non-gaap measures at the end 

       of the press release


(4) Income on non-accrual loans is accounted for on a cash basis, and the loan balances are included in interest-earning assets.(5) Interest rate spread represents the difference between the average rate earned on interest-earning assets


      and the average rate paid on interest-bearing liabilities.





 CITIZENS FINANCIAL SERVICES, INC.CONSOLIDATED SUMMARY OF LOANS BY TYPE; NON-PERFORMING ASSETS; AND ALLOWANCE FOR CREDIT LOSSES

(UNAUDITED)




(Excludes Loans Held for Sale)




(In Thousands)





December 31,September 30,June 30,March 31,December 31,
20252025202520252024Real estate:




  Residential$         340,972$               344,790$       341,671$       350,221$       351,398  Commercial1,218,5141,180,6551,151,5851,117,2401,121,435  Agricultural347,448342,487331,995329,985327,722  Construction93,965107,867138,307168,896164,326Consumer88,210109,45822,364109,339109,505Other commercial loans179,166171,345174,740158,133155,012Other agricultural loans30,24727,14228,36628,48829,662State & political subdivision loans52,10051,64452,72753,36154,182Total loans2,350,6222,335,3882,241,7552,315,6632,313,242Less: allowance for credit losses - loans22,80622,45422,10922,08121,699Net loans$      2,327,816$            2,312,934$    2,219,646$    2,293,582$    2,291,543





Past due and non-performing assets










Total loans past due 30-89 days and still accruing$             9,269$                 13,228$         18,554$          9,632$          8,015





Non-accrual loans$           26,602$                 20,523$         24,595$         23,545$         25,701Loans past due 90 days or more and still accruing229373471,393276Non-performing loans$           26,831$                 20,560$         24,942$         24,938$         25,977Other real estate owned2,3582,4342,4342,5442,635Total Non-performing assets$           29,189$                 22,994$         27,376$         27,482$         28,612


















Three Months EndedAnalysis of the Allowance for Credit Losses - LoansDecember 31,September 30,June 30,March 31,December 31,(In Thousands)20252025202520252024Balance, beginning of period$           22,454$                 22,109$         22,081$         21,699$         21,695Charge-offs(57)(20)(596)(185)(105)Recoveries617252919Net charge-offs(51)(3)(571)(156)(86)Provision for credit losses - loans40334859953890Balance, end of period$           22,806$                 22,454$         22,109$         22,081$         21,699 CITIZENS FINANCIAL SERVICES, INC.



Reconciliation of GAAP and Non-GAAP Financial Measures



(UNAUDITED)



(Dollars in thousands, except per share data)









As of 


December 31,


20252024

Tangible Equity



Stockholders' Equity - GAAP$          338,051$           299,734

Intangible Assets(87,979)(88,650)

Tangible Equity - Non-GAAP250,072211,084

Shares outstanding adjusted for June 2025 stock Dividend4,807,0804,806,685

Tangible Book value per share - Non-GAAP$              52.02$               43.91







As of 


December 31,


20252024

Tangible Equity per share



Stockholders' Equity per share - GAAP$              70.32$               62.35

Adjustment for intangible assets(18.30)(18.44)

Tangible Book value per share - Non-GAAP$              52.02$               43.91












For the Three Months EndedFor the Year Ended
December 31,December 31,
2025202420252024Return on Average Assets Excluding Accumulated Other Comprehensive Loss (AOCL)



Average Assets - GAAP$       3,055,993$        3,015,467$            3,021,591$       2,981,322Average AOCL(13,343)(21,929)(19,660)(25,140)Average Assets, Excluding AOCL - Non-GAAP3,069,3363,037,3963,041,2513,006,462Net Income - GAAP$            10,483$               7,983$                 36,572$           27,818Annualized Return on Average Assets-GAAP1.37 %1.06 %1.21 %0.93 %Annualized Return on Average Assets, Excluding AOCL - Non-GAAP1.37 %1.05 %1.20 %0.93 %





For the Three Months EndedFor the Year Ended
December 31,December 31,
2025202420252024Return on Average Equity Excluding Accumulated Other Comprehensive Loss (AOCL)



Average Stockholders' Equity - GAAP$          334,595$           300,258$               317,676$          290,094Average AOCL(13,343)(21,929)(19,660)(25,140)Average Stockholders' Equity, Excluding AOCL - Non-GAAP347,938322,187337,336315,234Net Income - GAAP$            10,483$               7,983$                 36,572$           27,818Annualized Return on Average Stockholders' Equity-GAAP12.53 %10.63 %11.51 %9.59 %Annualized Return on Average Stockholders' Equity, Excluding AOCL - Non-GAAP12.05 %9.91 %10.84 %8.82 %





For the Three Months EndedFor the Year Ended
December 31,December 31,
2025202420252024Return on Average Tangible Equity



Average Stockholders' Equity - GAAP$          334,595$           300,258$               317,676$          290,094Average Intangible Assets(88,062)(88,757)(88,308)(89,031)Average Tangible Equity - Non-GAAP246,533211,501229,368201,063Net Income - GAAP$            10,483$               7,983$                 36,572$           27,818Annualized Return on Average Tangible Equity Non-GAAP17.01 %15.10 %15.94 %13.84 %





For the Three Months EndedFor the Year Ended
December 31,December 31,
2025202420252024Return on Average Assets and Equity Excluding sale of Braavo assets, net of legal fees and provision associated with Braavo loans remaining after sale 



Net Income - GAAP$            10,483$               7,983$                 36,572$           27,818After tax gain on sale of Braavo, net of legal fees---(712)After tax provision associated with Braavo loans remaining after sale---1,427Net Income excluding sale of Braavo assets, net of legal fees and provision associated with Braavo loans remaining after sale - Non-GAAP$            10,483$               7,983$                 36,572$           28,533Average Assets3,055,9933,015,4673,021,5912,981,322Annualized Return on Average assets, Excluding sale of Braavo assets, net of legal fees, provision associated with Braavo loans remaining after sale, net of tax - Non-GAAP1.37 %1.06 %1.21 %0.96 %




Average Stockholders' Equity - GAAP$          334,595$           300,258$               317,676$          290,094Annualized 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   - Non-GAAP12.53 %10.63 %11.51 %9.84 %




Average Tangible Equity - Non-GAAP246,533211,501229,368201,063Annualized 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, - Non-GAAP17.01 %15.10 %15.94 %14.19 %





For the Three Months EndedFor the Year Ended
December 31,December 31,
2025202420252024Earnings per share, Excluding sale of Braavo assets, net of legal fees and provision associated with Braavo loans remaining after sale 



Net Income - GAAP$            10,483$               7,983$                 36,572$           27,818After tax gain on sale of Braavo, net of legal fees---(712)After tax provision associated with Braavo loans remaining after sale---1,427Net income excluding one time items - Non-GAAP$            10,483$               7,983$                 36,572$           28,533Number of shares used in computation - basic4,796,7174,797,1354,797,5204,797,258Basic 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$                2.19$                 1.66$                     7.62$               5.95










For the Three Months EndedFor the Year Ended
December 31,December 31,Reconciliation of net interest income on fully taxable equivalent basis2025202420252024Total interest income$            41,151$             39,793$               159,168$          154,317Total interest expense14,94016,92061,16767,862Net interest income26,21122,87398,00186,455Tax equivalent adjustment3182481,108991Net interest income (fully taxable equivalent) - Non-GAAP$            26,529$             23,121$                 99,109$           87,446 



View original content:https://www.prnewswire.com/news-releases/citizens-financial-services-inc-reports-unaudited-full-year-and-fourth-quarter-2025-financial-results-302674504.htmlSOURCE Citizens Financial Services, Inc.

Original: CITIZENS FINANCIAL SERVICES, INC. REPORTS UNAUDITED FULL YEAR AND FOURTH QUARTER 2025 FINANCIAL RESULTS

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