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].

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]