☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from_____________________ to ___________________ Commission file number 0-13222 CITIZENS FINANCIAL SERVICES, INC. (Exact name of registrant as specified in its charter) PENNSYLVANIA 23-2265045 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. ...

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by i ...

Citizens Financial Services (CZFS) came out with quarterly earnings of $1.60 per share, beating the Zacks Consensus Estimate of $1.49 per share. This compares to earnings of $1.49 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.38%. A quarter ago, it was expected that this bank would post earnings of $1.54 per share when it actually produced earnings of $1.68, delivering a surprise of 9.09%.Over the last four quarters, the c ...

Contact: LEEANN GEPHART, CHIEF BANKING OFFICER First Citizens Community Bank 15 S. Main Street Mansfield, PA 16933 570-545-6005 570-662-8512 (fax) 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 ar ...

All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its ...

Company Overview - Citizens Financial Services (CZFS) is headquartered in Mansfield and has experienced a price change of -8.92% this year [3] - The bank currently pays a dividend of $0.5 per share, resulting in a dividend yield of 3.43%, which is higher than the Banks - Northeast industry's yield of 2.74% and the S&P 500's yield of 1.59% [3] Dividend Analysis - The current annualized dividend of CZFS is $1.98, reflecting a 1% increase from the previous year [4] - Over the last 5 years, CZFS has increased its dividend 3 times year-over-year, with an average annual increase of 1.50% [4] - The current payout ratio for CZFS is 32%, indicating that it paid out 32% of its trailing 12-month EPS as dividends [4] Earnings Growth - The Zacks Consensus Estimate for CZFS's earnings per share for 2025 is $6.40, representing a year-over-year growth rate of 6.49% [5] Investment Opportunity - CZFS is considered a compelling investment opportunity due to its attractive dividend and a strong Zacks Rank of 2 (Buy) [7]

Company Overview - Citizens Financial Services (CZFS) is headquartered in Mansfield and has experienced a price change of -10.17% this year [3] - The bank currently pays a dividend of $0.5 per share, resulting in a dividend yield of 3.48%, which is higher than the Banks - Northeast industry's yield of 2.76% and the S&P 500's yield of 1.61% [3] Dividend Analysis - The current annualized dividend of CZFS is $1.98, reflecting a 1% increase from the previous year [4] - Over the last 5 years, CZFS has increased its dividend 4 times year-over-year, with an average annual increase of 1.50% [4] - The current payout ratio for CZFS is 32%, indicating that the company paid out 32% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for CZFS's earnings in 2025 is $6.40 per share, which represents a year-over-year earnings growth rate of 6.49% [5] Investment Considerations - High-yielding stocks, like CZFS, can be attractive for income investors, especially those seeking dividends [6][7] - CZFS is noted as a compelling investment opportunity due to its attractive dividend and a strong Zacks Rank of 2 (Buy) [7]

Acquisition and Market Expansion - Citizens Financial Services, Inc. completed the acquisition of HV Bancorp, Inc. on June 16, 2023, enhancing its market presence[11] - The Company acquired HV Bancorp, Inc. and its subsidiary, Huntingdon Valley Bank, on June 16, 2023, expanding its market presence[11] - The Bank operates 38 full-service offices and has expanded into new markets, including a limited production office in Georgetown, Delaware, opened in 2024[14] - The Bank operates 38 full-service offices and has opened a limited production office in Georgetown, Delaware, enhancing its geographic reach[14] Employee Diversity and Development - As of December 31, 2024, the Company had a total of 410 employees, with approximately 70% being women, indicating a strong commitment to diversity[18] - As of December 31, 2024, the Company had 410 employees, with approximately 70% being women, indicating a diverse workforce[18] - The Company emphasizes employee development, with 19% of staff having been with the organization for over 15 years, showcasing strong employee retention[19] - The Company emphasizes employee development and retention, with 19% of staff having been with the Company for over fifteen years[19] Regulatory Compliance and Capital Standards - The Company maintains a common equity Tier 1 capital ratio of at least 4.5%, in compliance with federal regulations[28] - Federal regulations require the Company to meet minimum capital standards effective January 1, 2015, aligning with Basel Committee recommendations[27] - The capital standards require a minimum common equity Tier 1 capital ratio of 4.5%, Tier 1 capital ratio of 6.0%, and total capital ratio of 8.0% to risk-weighted assets[28] - The Bank's leverage ratio was 8.99%, which is below the "well-capitalized" threshold under the community bank leverage ratio framework[33] - An institution is deemed "well capitalized" if it has a total risk-based capital ratio of 10.0% or greater, a Tier 1 risk-based capital ratio of 8.0% or greater, and a leverage ratio of 5.0% or greater[34] - The Bank must file a capital restoration plan with the FRB within 45 days if deemed "undercapitalized" or worse[35] - The Company is subject to extensive regulation by the Pennsylvania Department of Banking and the Federal Reserve System, ensuring compliance and operational integrity[21] - The Company is subject to extensive regulation by the Federal Reserve System and the Pennsylvania Department of Banking, impacting its operational framework[21] Community Engagement and Credit Needs - The Bank's most recent Community Reinvestment Act rating was "Satisfactory," reflecting its commitment to meeting community credit needs[26] - The Bank's market areas include diverse economies, such as manufacturing and retail trade, which are crucial for its growth strategy[15] Competitive Landscape - The Bank's competitive landscape includes local community banks and larger regional banks, necessitating strategic pricing and service differentiation[17] - The Company is engaged in a competitive banking environment, facing pressures from local community banks and larger regional banks[17] Dividend Policies and Financial Regulations - The Bank could have declared approximately $29.9 million in dividends during 2024 without prior regulatory approval, plus net profits earned to the date of declaration[40] - The Dodd-Frank Act mandates that no institution may pay a dividend if it is in default of its assessments[44] - The FRB's policies require that dividends should be paid only out of current earnings and if the prospective rate of earnings retention appears consistent with the organization's capital needs[58] - The Dodd-Frank Act increased the minimum target Deposit Insurance Fund (DIF) ratio from 1.15% to 1.35% of estimated insured deposits[45] - Under the Dodd-Frank Act, deposit insurance per account owner is set at $250,000 for all types of accounts[44] - The Bank is required to maintain average daily reserves equal to 3% on aggregate transaction accounts of up to $644.0 million, plus 10% on the remainder[48] - The Federal Deposit Insurance Act holds depository institutions liable for losses related to defaults, which could apply if the company had a separate depository institution[59] Economic Influences - The Company’s operations are influenced by the Federal Reserve's monetary policies, which affect interest rates and overall economic growth[62] - The FRB's monetary policies significantly influence the banking industry's earnings and growth, affecting interest rates on loans and deposits[62] - The company cannot predict changes in interest rates, deposit levels, or loan demand due to the dynamic economic conditions and regulatory actions[63]

分组1 - Citizens Financial Services reported quarterly earnings of $1.68 per share, exceeding the Zacks Consensus Estimate of $1.54 per share, and showing an increase from $1.60 per share a year ago, resulting in an earnings surprise of 9.09% [1] - The company posted revenues of $26.21 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.05%, and an increase from $25.34 million year-over-year [2] - Over the last four quarters, Citizens Financial Services has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] 分组2 - The stock has underperformed the market, losing about 4.4% since the beginning of the year compared to the S&P 500's gain of 2.7% [3] - The current consensus EPS estimate for the coming quarter is $1.42 on revenues of $26.4 million, and for the current fiscal year, it is $6.25 on revenues of $111.8 million [7] - The Zacks Industry Rank for Banks - Northeast is currently in the top 6% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Performance - Net income for 2024 was $27.8 million, an increase of $10.0 million or 56.2% compared to 2023, primarily due to one-time merger costs and credit loss provisions [2]. - Net income for Q4 2024 was $7,983,000, an increase from $7,540,000 in Q4 2023, representing a growth of 5.9% [14]. - Net income for the year ended December 31, 2024, was $27,818 thousand, up 56.3% from $17,811 thousand in 2023 [26]. - Earnings per share (EPS) for Q4 2024 was $1.68, compared to $1.59 in Q4 2023, reflecting a year-over-year increase of 5.7% [14]. - Basic and diluted earnings per share (excluding one-time items) were $1.68 in Q4 2024, up from $1.59 in Q4 2023, reflecting a growth of 5.7% [27]. Income and Expenses - Net interest income before provision for credit losses was $86.5 million for 2024, a 7.7% increase from $80.3 million in 2023 [4]. - Total non-interest income for 2024 was $15.4 million, an increase of $3.8 million from $11.6 million in 2023, driven by gains from the HVB acquisition [4]. - Total non-interest expenses for the year ended December 31, 2024, were $65,586,000, slightly up from $64,822,000 in 2023 [16]. - The provision for credit losses for the year ended December 31, 2024, was $2,587,000, significantly higher than $937,000 in 2023 [16]. Assets and Equity - Total assets increased to $3.03 billion as of December 31, 2024, up from $2.98 billion a year earlier [8]. - Stockholders' equity rose to $299.7 million at December 31, 2024, an increase of $20.1 million from $279.7 million in 2023 [9]. - Total assets increased to $3,025,724,000 as of December 31, 2024, up from $2,975,321,000 a year earlier, marking a growth of 1.7% [15]. - Stockholders' equity increased to $299,734,000 as of December 31, 2024, compared to $279,666,000 in the previous year, reflecting a growth of 7.1% [15]. - Tangible equity increased to $211,084 thousand in 2024 from $190,258 thousand in 2023, representing a growth of 10.4% [26]. Loan Performance - Net loans totaled $2.29 billion at December 31, 2024, an increase of $63.9 million from the previous year, primarily due to student loans [8]. - Total loans reached $2,313,242 thousand as of December 31, 2024, a slight decrease from $2,331,002 thousand in the previous quarter [24]. - Non-performing loans increased to $25,977 thousand in December 2024, up from $21,559 thousand in September 2024 [25]. - The allowance for credit losses on loans remained stable at $21,699 thousand as of December 31, 2024, compared to $21,695 thousand in the previous quarter [25]. Asset Quality - Non-performing assets increased to $28.6 million as of December 31, 2024, up $15.4 million from the previous year, largely due to large commercial loans placed on non-accrual status [8]. - Non-performing assets rose to $28,612,000 in Q4 2024, compared to $13,177,000 in Q4 2023, indicating a significant increase in asset quality concerns [14]. Efficiency Metrics - The return on average equity for 2024 was 9.59%, compared to 7.39% in 2023 [4]. - The return on average assets (annualized) improved to 1.06% in Q4 2024 from 1.01% in Q4 2023 [14]. - The net interest margin for Q4 2024 was 5.65%, compared to 5.49% in Q4 2023, indicating improved efficiency in earning assets [18]. - The average rate earned on interest-earning assets increased to 5.56% in 2024 from 5.07% in 2023 [21]. Dividends and Shareholder Returns - Cash dividends declared increased to $0.49 per share, up 1.0% from $0.485 per share declared in the previous year [10]. Workforce - The number of average full-time equivalent employees decreased to 388.5 in Q4 2024 from 395.3 in Q4 2023, suggesting a slight reduction in workforce [14].