Citizens Financial Services (CZFS) investor relations material

Executive summary

• Net income for Q1 2026 was $10.4 million, up 36.2% year-over-year, with diluted EPS of $2.16, driven by higher net interest income and a lower effective tax rate.

• Return on average assets was 1.34% and return on average equity was 12.03% for Q1 2026.

• Total assets reached $3.03B, gross loans $2.30B, and deposits $2.44B as of March 31, 2026.

• Recognized as a top-performing community bank with multiple industry awards and certifications.

Financial highlights

• Net interest income increased 13.5% to $26.1M, with a tax-equivalent net interest margin of 3.72%, up from 3.30% year-over-year.

• Non-interest income rose 7.7% to $3.7M, mainly from higher bank-owned life insurance earnings.

• Non-interest expenses increased 1.4% to $16.6M, with higher professional fees and software expenses.

• Total deposits increased $64.2M to $2.44B, while borrowed funds decreased $110.7M to $198.7M.

• Tangible common equity reached $255.7M, with a tangible common equity/tangible assets ratio of 8.70%.

Outlook and guidance

• Management emphasizes a long-term focus on shareholder returns, disciplined acquisitions, and sufficient liquidity from core deposits, FHLB financing, and investment maturities.

• Forward-looking statements highlight risks from interest rates, economic shifts, and regulatory changes.

• The investment strategy focuses on mortgage-backed and municipal securities, with active monitoring of interest rate risk.

• The company continues to stress test capital levels and maintain a leverage ratio above regulatory requirements.