16:18 ET CITIZENS FINANCIAL SERVICES, INC. REPORTS UNAUDITED FULL YEAR AND FOURTH QUARTER 2025 FINANCIAL RESULTS

, /PRNewswire/ -- Citizens Financial Services, Inc (Nasdaq: CZFS), parent company of First Citizens Community Bank (the "Bank"), released today its unaudited consolidated financial results for the three months and year ended December 31, 2025.On December 2, 2025, the Board of Directors declared a cash dividend of $0.50 per share, which was paid on December 26, 2025 to shareholders of record at the close of business on December 12, 2025. This quarterly cash dividend is an increase of 3.1% over the quarterly cash dividend of $0.485 per share declared one year ago, as adjusted for the 1% stock dividend declared in June 2025. Citizens Financial Services, Inc. has nearly 1,800 shareholders, the majority of whom reside in markets where its offices are located.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 are preceded by terms such as "expects," "believes," "anticipates," "intends" and similar expressions. Forward-looking statements are not guarantees of future performance. Numerous risks and uncertainties could cause or contribute to the Company's actual results, performance and achievements to be materially different from those expressed or implied by the forward-looking statements. Factors that may cause or contribute to these differences include, without limitation, changes in general economic conditions, including changes in market interest rates and changes in monetary and fiscal policies of the federal government; legislative and regulatory changes; and other factors disclosed periodically in the Company's filings with the Securities and Exchange Commission. Because of the risks and uncertainties inherent in forward-looking statements, readers are cautioned not to place undue reliance on them, whether included in this press release or made elsewhere periodically by the Company or on its behalf. The Company assumes no obligation to update any forward-looking statements except as may be required by applicable law or regulation.(1) See reconciliation of GAAP and Non-GAAP measures at the end of the press release CITIZENS FINANCIAL SERVICES, INC. Reconciliation of GAAP and Non-GAAP Financial Measures (UNAUDITED) (Dollars in thousands, except per share data) As of December 31, 2025 2024 Tangible Equity Stockholders' Equity - GAAP $ 338,051 $ 299,734 Intangible Assets (87,979) (88,650) Tangible Equity - Non-GAAP 250,072 211,084 Shares outstanding adjusted for June 2025 stock Dividend 4,807,080 4,806,685 Tangible Book value per share - Non-GAAP $ 52.02 $ 43.91 As of December 31, 2025 2024 Tangible Equity per share Stockholders' Equity per share - GAAP $ 70.32 $ 62.35 Adjustment for intangible assets (18.30) (18.44) Tangible Book value per share - Non-GAAP $ 52.02 $ 43.91 For the Three Months Ended For the Year Ended December 31, December 31, 2025 2024 2025 2024 Return on Average Assets Excluding Accumulated Other Comprehensive Loss (AOCL) Average Assets - GAAP $ 3,055,993 $ 3,015,467 $ 3,021,591 $ 2,981,322 Average AOCL (13,343) (21,929) (19,660) (25,140) Average Assets, Excluding AOCL - Non-GAAP 3,069,336 3,037,396 3,041,251 3,006,462 Net Income - GAAP $ 10,483 $ 7,983 $ 36,572 $ 27,818 Annualized Return on Average Assets-GAAP 1.37 % 1.06 % 1.21 % 0.93 % Annualized Return on Average Assets, Excluding AOCL - Non-GAAP 1.37 % 1.05 % 1.20 % 0.93 % For the Three Months Ended For the Year Ended December 31, December 31, 2025 2024 2025 2024 Return on Average Equity Excluding Accumulated Other Comprehensive Loss (AOCL) Average Stockholders' Equity - GAAP $ 334,595 $ 300,258 $ 317,676 $ 290,094 Average AOCL (13,343) (21,929) (19,660) (25,140) Average Stockholders' Equity, Excluding AOCL - Non-GAAP 347,938 322,187 337,336 315,234 Net Income - GAAP $ 10,483 $ 7,983 $ 36,572 $ 27,818 Annualized Return on Average Stockholders' Equity-GAAP 12.53 % 10.63 % 11.51 % 9.59 % Annualized Return on Average Stockholders' Equity, Excluding AOCL - Non-GAAP 12.05 % 9.91 % 10.84 % 8.82 % For the Three Months Ended For the Year Ended December 31, December 31, 2025 2024 2025 2024 Return on Average Tangible Equity Average Stockholders' Equity - GAAP $ 334,595 $ 300,258 $ 317,676 $ 290,094 Average Intangible Assets (88,062) (88,757) (88,308) (89,031) Average Tangible Equity - Non-GAAP 246,533 211,501 229,368 201,063 Net Income - GAAP $ 10,483 $ 7,983 $ 36,572 $ 27,818 Annualized Return on Average Tangible Equity Non-GAAP 17.01 % 15.10 % 15.94 % 13.84 % For the Three Months Ended For the Year Ended December 31, December 31, 2025 2024 2025 2024 Return on Average Assets and Equity Excluding sale of Braavo assets, net of legal fees and provision associated with Braavo loans remaining after sale Net Income - GAAP $ 10,483 $ 7,983 $ 36,572 $ 27,818 After tax gain on sale of Braavo, net of legal fees - - - (712) After tax provision associated with Braavo loans remaining after sale - - - 1,427 Net Income excluding sale of Braavo assets, net of legal fees and provision associated with Braavo loans remaining after sale - Non-GAAP $ 10,483 $ 7,983 $ 36,572 $ 28,533 Average Assets 3,055,993 3,015,467 3,021,591 2,981,322 Annualized Return on Average assets, Excluding sale of Braavo assets, net of legal fees, provision associated with Braavo loans remaining after sale, net of tax - Non-GAAP 1.37 % 1.06 % 1.21 % 0.96 % Average Stockholders' Equity - GAAP $ 334,595 $ 300,258 $ 317,676 $ 290,094 Annualized Return on Average Stockholders' equity, Excluding sale of Braavo assets, net of legal fees, provision associated with Braavo loans remaining after sale, net of tax - Non-GAAP 12.53 % 10.63 % 11.51 % 9.84 % Average Tangible Equity - Non-GAAP 246,533 211,501 229,368 201,063 Annualized Return on Average Tangible Equity Excluding sale of Braavo assets, net of legal fees, provision associated with Braavo loans remaining after sale, net of tax, - Non-GAAP 17.01 % 15.10 % 15.94 % 14.19 % For the Three Months Ended For the Year Ended December 31, December 31, 2025 2024 2025 2024 Earnings per share, Excluding sale of Braavo assets, net of legal fees and provision associated with Braavo loans remaining after sale Net Income - GAAP $ 10,483 $ 7,983 $ 36,572 $ 27,818 After tax gain on sale of Braavo, net of legal fees - - - (712) After tax provision associated with Braavo loans remaining after sale - - - 1,427 Net income excluding one time items - Non-GAAP $ 10,483 $ 7,983 $ 36,572 $ 28,533 Number of shares used in computation - basic 4,796,717 4,797,135 4,797,520 4,797,258 Basic and Diluted earnings per share, Excluding sale of Braavo assets, net of legal fees, provision associated with Braavo loans remaining after sale, net of tax - Non-GAAP $ 2.19 $ 1.66 $ 7.62 $ 5.95 For the Three Months Ended For the Year Ended December 31, December 31, Reconciliation of net interest income on fully taxable equivalent basis 2025 2024 2025 2024 Total interest income $ 41,151 $ 39,793 $ 159,168 $ 154,317 Total interest expense 14,940 16,920 61,167 67,862 Net interest income 26,211 22,873 98,001 86,455 Tax equivalent adjustment 318 248 1,108 991 Net interest income (fully taxable equivalent) - Non-GAAP $ 26,529 $ 23,121 $ 99,109 $ 87,446 SOURCE Citizens Financial Services, Inc.