Core Insights - The article emphasizes the importance of timing and sustainability in trend investing, highlighting that confirming the fundamentals is crucial for maintaining momentum in stock prices [1][2]. Group 1: Trend Analysis - Short-term capital losses can occur if trends reverse before exiting trades, making it essential to confirm sound fundamentals and positive earnings estimates to sustain stock momentum [2]. - The "Recent Price Strength" screen is a useful tool for identifying stocks in an uptrend, supported by strong fundamentals and trading near their 52-week high [3]. Group 2: Stock Example - Citizens Financial Services (CZFS) - Citizens Financial Services (CZFS) has shown a solid price increase of 24.4% over the past 12 weeks, indicating investor confidence in its potential upside [4]. - CZFS has maintained a price increase of 22% over the last four weeks, suggesting that the upward trend is still intact, and it is currently trading at 92.6% of its 52-week high-low range, indicating a potential breakout [5]. Group 3: Fundamental Strength - CZFS holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which are critical for near-term price movements [6]. - The stock also has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 4: Additional Insights - The article suggests that CZFS may continue its price trend without reversal in the near future, and encourages exploring other stocks that meet the "Recent Price Strength" criteria [8]. - A successful stock-picking strategy should be backed by historical profitability, which can be tested using the Zacks Research Wizard [9].

Financial Performance - Net income for the first nine months of 2024 was $19,835,000, an increase of 93.1% compared to $10,271,000 in the same period last year[149]. - Basic earnings per share for the first nine months of 2024 were $4.18, representing a 75.6% increase from $2.38 in the prior year[149]. - Annualized return on assets for the nine months of 2024 was 0.88%, compared to 0.53% for the same period last year[149]. - Annualized return on equity for the nine months of 2024 was 8.45%, up from 6.56% in the prior year[149]. - Non-interest income for the nine months ended September 30, 2024, totaled $12,062,000, an increase of $3,946,000 compared to the same period in 2023[182]. - Gains on loans sold increased by 144.5% to $1,648,000 for the nine months ended September 30, 2024, compared to $674,000 in the same period last year[182]. - The provision for income taxes for the nine months ended September 30, 2024, was $4,304,000, compared to $2,020,000 for the same period in 2023, reflecting an increase in income before tax[190]. - The effective tax rate for the first nine months of 2024 was 17.8%, compared to 16.4% for the same period in 2023[190]. Interest Income and Expenses - Net interest income for the first nine months of 2024 was $63,582,000, an increase of $5,177,000 or 8.9% compared to the same period in 2023[152]. - Net interest income after the provision for credit losses was $60,995,000 in the first nine months of 2024, compared to $53,077,000 in the same period last year[152]. - Total interest income rose to $38,689 thousand for the three months ended September 30, 2024, up from $36,689 thousand in 2023, representing an increase of approximately 5.5%[157]. - Total interest expense increased to $17,365 thousand for the three months ended September 30, 2024, compared to $14,285 thousand in 2023, reflecting a rise of about 21.5%[157]. - Total interest expense increased by $20,741,000 for the nine months ended September 30, 2024, due to higher volume and rates on interest-bearing liabilities[170]. - The average rate paid on interest-bearing liabilities increased from 1.83% to 3.02%, driven by Federal Reserve interest rate increases[170]. - Tax equivalent net interest margin decreased from 3.23% for the first nine months of 2023 to 3.09% for the comparable period in 2024[159]. Asset and Loan Growth - Total assets increased to $2,996,076 thousand, up from $2,589,610 thousand, representing a growth of approximately 15.7%[154]. - Total loans, net of discount, reached $2,285,323 thousand, up from $1,908,621 thousand, marking an increase of approximately 19.7%[154]. - Total loans reached $2.33 billion as of September 30, 2024, an increase from $2.25 billion at December 31, 2023, with a notable rise in consumer loans by 133.3%[201]. - Loans held for sale increased by $4.1 million to $13.5 million as of September 30, 2024, due to higher residential home sales activity in the third quarter[200]. - The average balance of commercial loans increased by $201.4 million, resulting in a positive impact of $9,361,000 on total interest income due to volume[167]. Credit Quality and Losses - The provision for credit losses for the first nine months of 2024 was $2,587,000, down from $5,328,000 in the same period of 2023[152]. - The allowance for credit losses on loans is $21,695,000, which is 0.93% of total loans, reflecting a slight increase from $21,153,000 or 0.94% as of December 31, 2023[211]. - Non-performing loans increased to $21,559,000 as of September 30, 2024, from $12,703,000 on December 31, 2023, representing a 69.7% increase[225]. - Non-accruing loans rose to $20,858,000 as of September 30, 2024, compared to $12,187,000 at the end of 2023, indicating a significant increase in loan quality issues[225]. - The total non-performing assets reached $24,045,000 as of September 30, 2024, up from $13,177,000 at the end of 2023, reflecting a substantial rise in distressed assets[225]. Capital and Equity - Stockholders' equity increased to $312,900 thousand from $263,016 thousand, reflecting a growth of approximately 19.0%[154]. - As of September 30, 2024, total stockholders' equity increased by $18.99 million, or 6.8%, reaching $298.7 million compared to $279.7 million at December 31, 2023[242]. - The leverage ratio under the community bank leverage ratio (CBLR) framework was 8.96% as of September 30, 2024, below the 9.0% requirement to be considered "well-capitalized"[245]. - Total Capital to Risk Weighted Assets for the Company was $278,944, representing a ratio of 11.55% as of September 30, 2024[247]. - Tier 1 Capital to Risk Weighted Assets for the Company was $237,796, with a ratio of 9.85% as of September 30, 2024[247]. Deposits and Funding - Total deposits rose by $128.7 million to $2.45 billion since year-end 2023, while borrowed funds decreased by $90.3 million to $231.7 million[45]. - Interest-bearing deposits totaled $1,916,401 thousand, up from $1,592,210 thousand, indicating a growth of approximately 20.4%[154]. - The average balance of interest-bearing deposits increased by $346.1 million, resulting in an increase in interest expense of $6,200,000[172]. - Borrowed funds decreased to $231.7 million as of September 30, 2024, from $322.0 million at December 31, 2023, due to a decrease in loans and a seasonal increase in deposits[239]. Risk Management and Strategy - Management continues to implement heightened risk management procedures for its commercial real estate portfolio due to regulatory guidance on concentration risks[205]. - The company utilizes a disciplined loan review process, including external independent reviews of at least 50% of the commercial loan portfolio annually[220]. - The company has not originated loans to companies performing actual drilling and exploration activities, focusing instead on service industry customers[209]. - The company recognizes fee income for servicing certain sold loans, contributing to non-interest income[210]. - The company anticipates recognizing an aggregate of $8.2 million of tax credits over the next 12 years from investments in low-income housing projects[192].

Core Viewpoint - The article emphasizes the importance of confirming the sustainability of stock trends for successful short-term investing, highlighting the use of a specific screening strategy to identify stocks with strong fundamentals that can maintain upward momentum [1][2]. Group 1: Stock Screening Strategy - The "Recent Price Strength" screen is designed to identify stocks with sufficient fundamental strength to sustain their recent uptrends, focusing on those trading in the upper portion of their 52-week high-low range, indicating bullishness [3]. - Citizens Financial Services (CZFS) is highlighted as a strong candidate for trend investing, having increased by 41.6% over the past 12 weeks, reflecting investor confidence in its potential upside [4]. - A recent price increase of 17.1% over the last four weeks further confirms that the upward trend for CZFS is intact, with the stock currently trading at 85% of its 52-week high-low range, suggesting a potential breakout [5]. Group 2: Fundamental Strength - CZFS holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which are critical for near-term price movements [6]. - The Zacks Rank system has a proven track record, with Zacks Rank 1 stocks averaging an annual return of +25% since 1988, indicating the effectiveness of this ranking in identifying strong investment opportunities [7]. - The Average Broker Recommendation for CZFS is 1 (Strong Buy), reflecting high optimism from the brokerage community regarding the stock's near-term performance [7]. Group 3: Additional Investment Opportunities - Besides CZFS, there are several other stocks that meet the criteria of the "Recent Price Strength" screen, suggesting that investors may explore these options for potential investments [8]. - The article encourages investors to utilize various Zacks Premium Screens tailored to different investing styles to identify winning stock picks [8].

Group 1: Earnings Performance - Citizens Financial Services reported quarterly earnings of $1.59 per share, exceeding the Zacks Consensus Estimate of $1.38 per share, but down from $1.61 per share a year ago, representing an earnings surprise of 15.22% [1] - The company posted revenues of $25.08 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 3.91% and down from $26.2 million year-over-year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates just once and has topped consensus revenue estimates only once [2] Group 2: Stock Performance and Outlook - Citizens Financial Services shares have declined approximately 7.7% since the beginning of the year, while the S&P 500 has gained 22.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4] - The current consensus EPS estimate for the upcoming quarter is $1.53 on revenues of $26.7 million, and for the current fiscal year, it is $5.31 on revenues of $102.7 million [7] Group 3: Industry Context - The Zacks Industry Rank for Banks - Northeast is currently in the top 18% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5] - The estimate revisions trend for Citizens Financial Services is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6]

Financial Performance - Net income for the first nine months of 2024 was $19.8 million, a 93.1% increase compared to $9.6 million for the same period in 2023[2] - Basic earnings per share for the first nine months of 2024 was $4.18 compared to $2.38 for the same period last year[10] - Net income for the quarter was $7,536 thousand, compared to $7,548 thousand in the same quarter last year, showing a marginal decrease of 0.2%[34] - Net Income - GAAP for the three months ended September 30, 2024, was $7,536, compared to $7,548 for the same period in 2023[42] - Net Income excluding one-time items - Non-GAAP for the nine months ended September 30, 2024, was $20,550, compared to $21,411 for the same period in 2023[42] Income and Revenue - Net interest income before the provision for credit losses was $63.6 million for the nine months ended September 30, 2024, an increase of $5.2 million, or 8.9%, over the same period a year ago[5] - Total non-interest income was $12.1 million for the nine months ended September 30, 2024, an increase of $3.9 million from $8.1 million for the same period last year[13] - Net interest income for the quarter was $21,324 thousand, slightly down from $22,404 thousand in September 2023, indicating a decrease of 4.8%[34] - Non-interest income totaled $3,755 thousand in September 2024, up from $3,662 thousand in September 2023, marking an increase of 2.5%[34] - Total Interest Income for the three months ended September 30, 2024, was $38,689, up from $36,689 in 2023[46] - Net Interest Income for the nine months ended September 30, 2024, was $63,582, compared to $58,405 in 2023[46] Credit Losses and Asset Quality - The provision for credit losses for the nine months ended September 30, 2024 was $2.6 million, a decrease of $2.7 million from $5.3 million for the same period in 2023[12] - Non-performing assets increased to $24.0 million, up from $13.6 million in the previous year, indicating a rise in asset quality concerns[32] - The provision for credit losses was a negative $200 thousand in September 2024, compared to a positive provision of $475 thousand in the same quarter last year, indicating improved credit quality[34] - Non-performing loans amounted to $21,559 thousand, up from $15,234 thousand, indicating a significant increase of 41.6%[39] - The allowance for credit losses on loans was $21.7 million at September 30, 2024, an increase of $542,000 from December 31, 2023[25] Assets and Liabilities - Total assets as of September 30, 2024, were $3.03 billion, compared to $2.98 billion at December 31, 2023[22] - Net loans as of September 30, 2024, totaled $2.31 billion, an increase of $81.6 million from December 31, 2023[24] - Total deposits rose to $2,450,149 thousand in September 2024, compared to $2,321,481 thousand in December 2023, reflecting an increase of 5.6%[33] - Total interest-bearing liabilities were $2,258,937 million, with a net interest spread of 3.06%[36] - Total loans reached $2,331,002 thousand, an increase from $2,246,396 thousand, marking a growth of 3.8% year-over-year[38] Stockholders' Equity and Dividends - Stockholders' equity rose to $298.7 million at September 30, 2024, up from $279.7 million at December 31, 2023, reflecting a net income of $19.8 million for the nine months ended September 30, 2024[28] - A cash dividend of $0.49 per share was declared on September 3, 2024, representing a 1.0% increase from the previous year's dividend of $0.485 per share[29] - Total stockholders' equity rose to $298,654 thousand in September 2024, compared to $279,666 thousand in December 2023, an increase of 6.8%[33] Ratios and Margins - The effective tax rate for the first nine months of 2024 was 17.8%, compared to 16.4% in the comparable period in 2023[2] - The net interest margin remained stable at 3.09% for both the three and nine months ended September 30, 2024[32] - The loan to deposit ratio improved to 95.14% from 96.20% in the previous year, indicating better liquidity management[32] - The average interest rate on interest-earning assets was 5.54%, compared to 4.91% in the previous year, reflecting an increase of 1.63 percentage points[37] - The net interest spread decreased to 2.52% from 2.80% year-over-year, indicating a contraction in profitability from interest[37]

Core Viewpoint - Citizens Financial Services reported quarterly earnings of $1.30 per share, missing the Zacks Consensus Estimate of $1.33 per share, and down from $1.53 per share a year ago, indicating a negative earnings surprise of -2.26% [1][2] Financial Performance - The company posted revenues of $24.64 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 3.01%, compared to $20.2 million in revenues a year ago [2] - Over the last four quarters, the company has surpassed consensus EPS estimates only once and has topped consensus revenue estimates two times [2] Stock Performance - Citizens Financial Services shares have declined approximately 16.8% since the beginning of the year, contrasting with the S&P 500's gain of 14.5% [3] Future Outlook - The company's earnings outlook will be crucial for investors, including current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $1.36 on revenues of $26.7 million, and for the current fiscal year, it is $5.50 on revenues of $103.8 million [7] Industry Context - The Zacks Industry Rank for Banks - Northeast is currently in the top 13% of over 250 Zacks industries, suggesting a favorable outlook for the sector [8] - Another bank in the same industry, Citizens & Northern, is expected to report quarterly earnings of $0.37 per share, reflecting a year-over-year change of -5.1% [9]

Core Viewpoint - The company reported significant financial improvements for the six months ended June 30, 2024, compared to the same period in 2023, with notable increases in net income and interest income driven by loan growth and effective management of expenses [4][8][13]. Financial Performance - For the three months ended June 30, 2024, net income was $5.3 million, a recovery from a loss of $4.1 million in the same period of 2023 [14][21]. - Total interest income for the three months ended June 30, 2024, was $37.9 million, up from $26.8 million in the same period of 2023, reflecting a strong increase in interest and fees on loans [8][21]. - The net interest margin for the three months ended June 30, 2024, was 3.15%, compared to 2.22% for the same period in 2023, indicating improved profitability from interest-earning assets [14][21]. Asset Quality - The allowance for credit losses on loans increased to $22.8 million as of June 30, 2024, from $21.7 million at December 31, 2023, reflecting a proactive approach to managing credit risk [6][13]. - Non-performing assets totaled $17.9 million as of June 30, 2024, an increase of $4.3 million since December 31, 2023, primarily due to specific loans placed on non-accrual status [13][9]. Balance Sheet Highlights - Total assets as of June 30, 2024, were $2.95 billion, a slight decrease from $2.98 billion at December 31, 2023 [13][22]. - Net loans increased to $2.23 billion as of June 30, 2024, up from $2.22 billion at December 31, 2023, driven by growth in student loans [13][22]. - Total deposits decreased to $2.27 billion as of June 30, 2024, down from $2.32 billion at December 31, 2023, influenced by competitive pressures in the deposit market [13][22]. Shareholder Returns - Cash dividends paid per share increased to $0.485 for the three months ended June 30, 2024, compared to $0.475 in the same period of 2023 [14][21]. - The number of shares used in the computation for basic earnings per share was 4,748,927 for the three months ended June 30, 2024, compared to 4,159,966 for the same period in 2023 [14][21].

Financial Performance - Net interest income before the provision for credit losses was $42.3 million for the six months ended June 30, 2024, an increase of $6.3 million, or 17.4%, over the same period a year ago [2]. - Net income for the first six months of 2024 was $12.3 million, which was $9.6 million, or 351.7% more than 2023's net income through June 30, 2023 [4]. - Total non-interest income was $8.3 million for the six months ended June 30, 2024, which is $3.9 million more than the non-interest income of $4.5 million for the same period last year [8]. - Net income for 2024 was $5,275 million, a significant increase from a net loss of $4,144 million in 2023 [18]. - Basic earnings per share for the three months ended June 30, 2024 was $1.11 compared to a loss of $1.00 for the comparable period of 2023 [10]. - Basic earnings per share for the first six months of 2024 was $2.59, compared to $0.66 for the same period last year [29]. - Net income for the three months ended June 30, 2024, was $5.3 million, an increase of $9.4 million compared to the net loss of $4.1 million in the same period of 2023 [26]. - Net interest income after provision for credit losses for the six months ended June 30, 2024, was $39.5 million, compared to $31.1 million for the same period in 2023, a 27.1% increase [41]. - Net interest income rose to $42,753 thousand in 2024 compared to $36,539 thousand in 2023, an increase of 16.5% [44]. Credit Losses and Provisions - The provision for credit losses for the three months ended June 30, 2024 was $2.0 million compared to $4.9 million for the three months ended June 30, 2023, a decrease of $2.9 million [11]. - The provision for credit losses for the six months ended June 30, 2024, was $2.8 million, a decrease of $2.1 million from $4.9 million for the same period in 2023 [30]. - The allowance for credit losses - loans totaled $22.8 million at June 30, 2024, an increase of $1.2 million from December 31, 2023 [14]. - The allowance for credit losses on loans was $22,797 million as of June 30, 2024, compared to $21,652 million in the previous year [19]. - The provision for credit losses on loans was $1,112 thousand for the period ended June 30, 2024, compared to $200 thousand in the previous period, showing a significant increase [45]. Assets and Liabilities - Total assets as of June 30, 2024, were $2,947,531 million, a slight decrease from $2,975,321 million at the end of 2023 [19]. - Total assets increased to $2,992,357 thousand in 2024 from $2,401,720 thousand in 2023, representing a growth of 24.5% [44]. - Average assets increased to $2,973,890 thousand in 2024 from $2,432,795 thousand in 2023, a growth of 22.3% [47]. - Total loans past due 30-89 days and still accruing increased to $20,652,000 in 2024 from $6,311,000 in 2023, showing a significant rise [49]. - Total deposits decreased to $2,273,095 million in June 2024 from $2,321,481 million in December 2023 [19]. - Deposits decreased by $48.4 million from December 31, 2023, to $2.27 billion at June 30, 2024 [15]. Equity and Stockholders - Stockholders' equity increased to $286,470 million in June 2024, up from $279,666 million at the end of 2023 [19]. - Average stockholders' equity increased to $313,384,000 in 2024 from $250,390,000 in 2023, a rise of 25.2% [51]. - Tangible book value per share increased to $41.49 in 2024 from $36.69 in 2023, representing a growth of 12.1% [52]. Non-Interest Income and Expenses - Total non-interest expenses for the three months ended June 30, 2024 totaled $16.2 million compared to $20.7 million for the same period last year, a decrease of $4.4 million [12]. - Total non-interest expenses for the six months ended June 30, 2024, totaled $32.9 million, an increase of $0.4 million compared to $32.5 million for the same period last year [31]. - Total non-interest income was $3.3 million for the three months ended June 30, 2024, which is $1.1 million more than the comparable period last year [33]. - Non-interest income for the three months ended June 30, 2024, was $3.3 million, compared to $2.3 million in the same period of 2023, a 46.3% increase [41]. Employee Metrics - Average full-time equivalent employees increased to 389.7 in 2024 from 322.2 in 2023 [18]. Interest Rates and Spreads - The yield on interest earning assets increased by 88 basis points to 5.52% for the six months ended June 30, 2024 [7]. - The average rate on interest-earning assets increased to 5.52% in 2024 from 4.64% in 2023, reflecting a rise of 1.88 percentage points [44]. - The net interest spread decreased to 2.53% in 2024 from 2.81% in 2023, reflecting a decline of 0.28 percentage points [44]. - The net interest spread decreased to 2.58% in 2024 from 2.71% in 2023, indicating a narrowing margin [48]. Non-Performing Assets - Non-performing assets rose to $17,924 million in 2024 from $13,638 million in 2023 [18]. - Non-performing assets totaled $17.9 million as of June 30, 2024, an increase of $4.3 million since December 31, 2023 [37].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Registrant's telephone number, including area code: (570) 662‑2121 N/A (Former Name, former address and former fiscal year, if changed since last report) For the transition period from________________ ...

Citizens Financial Services (CZFS) came out with quarterly earnings of $1.49 per share, missing the Zacks Consensus Estimate of $1.55 per share. This compares to earnings of $1.71 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -3.87%. A quarter ago, it was expected that this bank would post earnings of $1.62 per share when it actually produced earnings of $1.60, delivering a surprise of -1.23%.Over the last four quarters, the ...