Citizens Financial Services : Fourth Quarter 2025

Published: 2026-04-29 15:33:22 ET CZFS

Published on 04/29/2026 at 03:33 pm EDT

Legal Disclosures

Forward-Looking Statements (p. 2 of 2)

The agricultural economy is subject to extreme swings in both the costs of resources and the prices received from the sale of products as a result of weather, government regulations, international trade agreements and consumer tastes, which could negatively impact certain of our customers.

Loan concentrations in certain industries could negatively impact our results, if financial results or economic conditions deteriorate.

Companies providing support services related to the exploration and drilling of the natural gas reserves in our market area may be affected by federal, state and local laws and regulations such as restrictions on production, permitting, changes in taxes and environmental protection, which could negatively impact our customers and, as a result, negatively impact our loan and deposit volume and loan quality. Additionally, the activities the companies providing support services related to the exploration and drilling of the natural gas reserves may be dependent on the market price of natural gas. As a result, decreases in the market price of natural gas could also negatively impact these companies, our customers.

Additional factors are discussed in this Annual Report on Form 10-K under "Item 1A. Risk Factors." These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Forward-looking statements speak only as of the date they are made and the Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date of the forward-looking statements or to reflect the occurrence of unanticipated events. Accordingly, past results and trends should not be used by investors to anticipate future results or trends.

Company Profile

Deposits: $2.38B

Gross Loans: $2.35B

Assets: $3.06B

YTD Return on Average Tangible Common Equity

: 15.94%(3)

YTD Return on Average Assets:

1.21%

Headquarters

Mansfield, PA

Founded 1872

Chartered 1932

Ticker NASDAQCM: CZFS

Market Cap(1) $293.9

Branches(2) 43

Employees(2) 376 FT - 39 PT

Institutional Ownership 28.14%

3 Mo. ADTV 9,806

52 Week H/L $69.30 / $49.96

Chairman R. Joseph Landy

CEO, President & Vice Randall E. Black

Chairman

Executive VP & CFO

Stephen J. Guillaume

Retail Banking with 43 branches and 29 ATMs

Mobile & Online Banking

C&I Lending

SBA and USDA Lending

Treasury Management

Card & Payment Services

Business Banking

Home Lending

Personal Lending

Indirect Auto Lending

Secured & Unsecured Consumer Loans

Retail Plan Admin / Custody Services

Business, Personal, & Life Insurance

Institutional Life Insurance

Brokerage & Advisory Services

Market Cap as of January 27, 2026

Branches & Employees data as of January 28, 2026

Please see appendix for non-GAAP reconciliations

Note: Holding Company data shown; Data as of December 31, 2025

Trust Services

Financial Highlights

MRQ - Highlights - YTD

Profitability

Balance Sheet

Credit

Net Interest Margin

vs. 3.60%

Total Assets

0.3% Growth

NPAs / Assets Ratio

vs. 0.75%

Core ROAA (1)

vs. 1.33%

YTD Core ROAA(1)

vs. 1.16%

Total Loans and Leases

0.6% Growth

NPLs / Gross Loans Ratio

vs. 0.88%

Efficiency Ratio

vs. 55.16%

Total Deposits

(1.4%) Growth

Reserves / NPLs Ratio

vs. 109.2%

(1) Please see appendix for non-GAAP reconciliations

Experienced Leadership

Executive

Title

Years of Banking Experience

Joined FCCB

Randall E. Black

Vice Chairman, President & CEO

1993

Stephen J. Guillaume

Executive VP & CFO

2009

David Z. Richards Jr.

Sr Executive VP & Board Director

2017

Jeffrey L. Wilson

Sr Executive VP & Chief Credit Officer

1987

LeeAnn Gephart

Executive VP & Chief Banking Officer

2021

Jeffrey R White

Executive VP & COO

2024

Investment Highlights

Long history of creating shareholder value and operating successfully

Tenured management with strong track record of operating high value companies

Experienced, disciplined and prudent acquirer

Strong geographic diversification presents opportunities

Steady record of high profitability

Diversity of interest earning assets

Long-term focus on shareholder returns

A Recognized High Performer

In 2022 FCCB was included in the ABA Nasdaq Community Bank Index - an indication of our progress and leadership capabilities in the market.

Citizens Financial Services, Inc. has continually been ranked one of the top 100 best performing community banks in the nation. This ranking is based on a 3-year ROAE. Our 2012 performance ranked us as number ONE in the nation. We also continue to be ranked in the top 100 Ag lenders nationwide and PA.

FCCB maintains its "Bank On" Certification (awarded 2022), a national standard promoted

by the CFE Fund, validating our commitment to providing safe, affordable, and accessible banking accounts for all.

Recognized for our dedication to serving military families. FCCB is also a proud participant in the Veterans Benefits Banking Program (VBBP), ensuring safe and accessible banking for veterans.

First Citizens Community Bank (FCCB) has been honored with the Federal Home Loan Bank of Pittsburgh's (FHLBank) 2025 Pillars of the Community Award. This is FHLBank's highest organizational honor

2025 and 2024: FCCB was recognized by Newsweek and Plant-A Insights Group as one of the top regional banks in the U.S. This distinction is based on a rigorous evaluation of profitability, financial relevance, risk exposure, and customer metrics.

Key Financial Highlights

Top Tier Consolidated

In $000s except f or per share data

2022Y

2023Y

2024Y

2025Y

MRQ 12/31/25

Balance Sheet

Total Assets

$2,333,393

$2,975,321

$3,025,724

$3,064,564

Total Loans

$1,725,724

$2,258,215

$2,322,849

$2,360,015

Total Deposits

$1,844,208

$2,321,481

$2,382,028

$2,376,979

Tangible Common Equity (2)

$168,473

$190,258

$211,084

$250,072

Profitability

ROAA

1.29%

0.67%

0.93%

1.21%

1.37%

ROAE

12.98%

7.39%

9.59%

11.51%

12.53%

ROATCE (2)

15.18%

10.00%

13.84%

15.94%

17.01%

Net Interest Margin

3.41%

3.21%

3.13%

3.50%

3.69%

Ef f iciency Ratio

53.25%

59.21%

62.15%

57.20%

54.03%

Capital & Per Share

Tang. Common Equity/Tang. Assets (2)

7.28%

6.59%

7.19%

8.40%

Tang. Common Equity/Tang. Assets (Excl. AOCI) (2)

8.72%

7.46%

7.99%

8.82%

Bank Leverage Ratio

8.77%

8.54%

8.99%

9.54%

Bank Total RBC Ratio

12.01%

NA(1)

11.99%

NA(1)

TBV per Share

$40.81

$39.63

$43.91

$52.02

Core Earnings per share - Basic

$7.08

$6.47

$5.95

$7.62

$2.19

(1) Bank met the requirements of the CBLR and did not report total RBC ratio

(2) Please see Appendix f or non-GAAP reconciliations

Liquidity Position and Sources

Liquidity Well-Managed to Cover Short-Term Needs

Liquidity Sources

December 31, 2025

September 30, 2025

$ in Thousands

Cash and Cash Equivalents

$37,916

$34,700

FHLB Borrowing Capacity Remaining

636,189

630,634

Brokered Deposits Capacity

590,629

550,853

FRB Borrowing Capacity

29,546

40,221

Total

$1,294,280

$1,256,408

Investments

US Gov't & Agency

$181,297

$190,949

MBS & CMO

$149,310

$149,542

Municipals

$120,608

$120,474

Corporates

$11,304

$11,280

Less: Pledged Securities

(364,216)

(374,865)

Net Unpledged Securities

$98,303

$97,380

Total Liquidity Sources

$1,392,583

$1,353,788

Deposit Mix

Deposit Mix Analysis

Deposits by Category ($M's)

$2,500

$419

$522

$487

$470

$475

$448

$71

$128

$96

$72

$70

$73

$278

$396

$403

$396

$71

$383

$388

$408

$402

$1,381

$1,415

$1,372

$1,471

$1,439

$1,395

$1,108

$2,000

$1,500

$1,000

$500

12/31/2022 12/31/2023 12/31/2024 3/31/2025 6/30/2025 9/30/2025 12/31/2025

Loan Portfolio Mix

Loan Type Analysis

Loans Outstanding ($M's)

$2,500

$120

$189

$186

$117

$196

$177

$2,000

$357

$372

$373

$377

$385

$394

$147

$196

$164

$169

$138

$108

$94

$1,500

$357

$136

$141

$207

$223

$237

$241

$81

$94

$549

$545

$555

$547

$1,000

$569

$354

$133

$128

$132

$129

$133

$138

$59

$500

$634

$746

$780

$710

$718

$735

$769

12/31/2022

12/31/2023

12/31/2024

3/31/2025

6/30/2025

9/30/2025

12/31/2025

Commercial Real Estate

Commercial C&I

1-4 Family

Multifamily

Construction

Farm & Ag.

Consumer & Other

History of Successful Growth

Total Asset Growth since 2000 ($000)

3,500,000

Date

Transaction

10/27/2000

Acquired 6 Sovereign Bancorp, Inc. Branches

12/31/2003

$7.5M Debt Capital Raise

6/4/2004

Acquired 2 Legacy Bank Branches

12/17/2005

Acquired 1 Fulton Savings Bank Branch

11/21/2008

Acquired 1 Elmira Savings Bank Branch

12/11/2015

Acquired First National Bank of Fredericksburg

12/8/2017

Acquired 1 S&T Bancorp, Inc. Branch

4/17/2020

Acquired MidCoast Community Bancorp

6/16/2023

Acquired HV Bancorp, Inc.

$3,064,564

3,000,000

2,500,000

($000)

2,000,000

1,500,000

1,000,000

500,000

Consistent & Attractive Returns

Historical Core ROAA (1) & ROATCE (1)

1.06% 1.05%

1.29%

1.37%

1.59%

18.62%

1.40%

1.29%

1.09%

Core ROAA (%)

Core ROATCE (%)

0.96%

1.21%

12.79%

12.85%

16.44%

16.24%

16.31%

16.65%

16.25%

14.19%

15.94%

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

History of Strong Asset Quality

Historical NPAs/Assets Trends

NCOs/Avg Loans:

0.06%

0.03%

0.00%

0.03%

0.11%

0.03%

0.94%

0.95%

0.73%

0.66%

0.51%

0.43%

0.41%

0.32%

2020 2021 2022 2023 2024 2025

Successful Track Record of Prudent Acquisitions

FNB of Fredericksburg

MidCoast Community Bancorp, Inc.

HV Bancorp, Inc.

Total Whole Bank Acquisitions Since January 1, 2015

Fredericksburg, PA

Wilmington, DE

Doylestown, PA

12/11/2015

4/17/2020

6/16/2023

Cash & Stock:

$23.0 million

Cash & Stock:

$29.5 million

Cash & Stock:

$67.9 million

$232

$269

$571

$1,072

$146

$231

$391

$769

$214

$213

$482

$909

CZFS Acquisitions since January 1, 2015

Transaction:

Geography: Date Closed: Locations: Purchase Price:

Target Assets ($M):

Target Loans ($M):

Target Deposits ($M):

Note: Financial and transaction value shown as of announcement of transaction

For the Twelve Months Ended,

For the Quarter Ended,

Dollars in thousands

12/31/2023

12/31/2024

12/31/2025

3/31/2025

6/30/2025

9/30/2025

12/31/2025

Total common equity

$279,666

$299,734

$338,051

$308,296

$313,653

$327,682

$338,051

Total intangible assets

89,408

88,650

87,979

88,464

88,288

88,132

87,979

Tangible common equity

$190,258

$211,084

$250,072

$219,832

$225,365

$239,550

$250,072

Total assets

$2,975,321

$3,025,724

$3,064,564

$3,016,338

$2,967,274

$3,056,269

$3,064,564

Total intangible assets

89,408

88,650

87,979

88,464

88,288

88,132

87,979

Tangible assets

$2,885,913

$2,937,074

$2,976,585

$2,927,874

$2,878,986

$2,968,137

$2,976,585

Accumulated other comprehensive gain (loss) income

($24,911)

($23,521)

($12,377)

($20,239)

($21,026)

($14,650)

($12,377)

TCE / TA

6.59%

7.19%

8.40%

7.51%

7.83%

8.07%

8.40%

TCE / TA (Excl. AOCI)

7.46%

7.99%

8.82%

8.20%

8.56%

8.82%

Tangible Book Value Per Share

$39.63

$43.91

$52.02

$45.73

$46.88

$49.83

$52.02

Non-GAAP Reconciliation - Tangible Book Value

Non-GAAP Reconciliation

Dollars in thousands, except per share data

For the Twelve Months Ended,

For the Quarter

Year to Date

12/31/2017

12/31/2018

12/31/2019

12/31/2020

12/31/2021

12/31/2022

12/31/2023

12/31/2024

12/31/2025

Net income

$13,025

$18,034

$19,490

$25,103

$29,118

$29,060

$17,811

$27,818

$10,483

$36,572

Boli death benefits

(1,155)

After tax provision for credit losses -

acquisition day 1 non-PCD

3,627

After tax gain on sale of Braavo, net of

legal fees

(712)

After tax provisision associatated with

Braavo loans remaining after sale

1,427

After tax merger and acquisition costs

165

466

2,179

7,513

Core net income $13,190 $18,034 $19,956 $27,282 $27,963 $29,060 $28,951 $28,533 $10,483 $36,572

Number of shares used in computation -

basic

Earnings per share, excluding

3,798,628

3,788,208

3,769,366

4,015,898

4,116,956

4,102,593

4,476,235

4,797,258

4,796,717

4,797,520

merger and acquisition costs,

provision for credit losses -

acquisition day 1 non-PCD and

Braavo related gain and provision

$3.47

$4.76

$5.29

$6.79

$7.08

$6.47

$5.95

$2.19 $7.62

Average assets

Annualized return on average

$1,258,925

$1,400,499

$1,453,957

$1,719,757

$2,002,634

$2,255,966

$2,666,841

2,981,322

3,055,993

3,021,591

stockholders equity, excluding boli

death benefits, merger and

acquisition costs, provision for

credit losses - acquisition day 1 non-

PCD and Braavo related gain and

provision

1.05%

1.29%

1.37%

1.59%

1.40%

1.29%

1.09%

0.96%

1.37% 1.21%

Average stockholders equity - GAAP

Annualized return on average

$129,756

$138,691

$149,887

$176,674

$204,222

$223,955

$241,124

$290,094

$334,595

$317,676

stockholders equity, excluding boli

death benefits, merger and

acquisition costs, provision for

credit losses - acquisition day 1 non-

PCD and Braavo related gain and

provision

10.17%

13.00%

13.31%

15.44%

13.69%

12.98%

12.01%

9.84%

12.53% 11.51%

Average Tangible Equity - Non-GAAP

$102,611

$109,712

$122,871

$146,505

$171,450

$174,568

$178,131

$201,063

$246,533

$229,368

Annualized return on average

tangible equity, excluding boli death

benefits, merger and acquisition

costs, provision for credit losses -

acquisition day 1 non-PCD and

Braavo related gain and provision 12.85% 16.44% 16.24% 18.62% 16.31% 16.65% 16.25% 14.19% 17.01% 15.94%

Disclaimer

Citizens Financial Services Inc. published this content on April 29, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 29, 2026 at 19:32 UTC.