Core Viewpoint - Citizens Financial Services reported quarterly earnings of $1.60 per share, exceeding the Zacks Consensus Estimate of $1.49 per share, and showing an increase from $1.49 per share a year ago, representing an earnings surprise of 7.38% [1][2] Earnings Performance - The company has surpassed consensus EPS estimates three times over the last four quarters [2] - For the quarter ended March 2025, Citizens Financial Services posted revenues of $26.43 million, which missed the Zacks Consensus Estimate by 1.02%, but increased from $25.93 million year-over-year [2] Stock Performance - Citizens Financial Services shares have declined approximately 13.2% since the beginning of the year, compared to a decline of 5.5% for the S&P 500 [3] Future Outlook - The company's earnings outlook is crucial for investors, as it includes 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 $1.56 on revenues of $27.2 million, and for the current fiscal year, it is $6.40 on revenues of $112.7 million [7] Industry Context - The Banks - Northeast industry, to which Citizens Financial Services belongs, is currently ranked in the top 25% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8]

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].

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].