Citizens Financial Services (CZFS) investor relations material

Executive summary

• Net income for the first six months of 2026 was $20.56 million, up 27.9% year-over-year, driven by higher net interest income and lower provision for credit losses.

• Basic EPS rose to $4.29 from $3.35 year-over-year; annualized ROA and ROE improved to 1.33% and 11.84%, respectively.

• For Q2 2026, net income was $10.2 million, a 20.4% increase compared to Q2 2025, with EPS rising to $2.12 from $1.76.

• Total assets reached $3.19 billion at June 30, 2026, up $127.6 million from year-end 2025, with growth in investments and loans.

Financial highlights

• Net interest income for six months increased 11.1% to $51.81 million; provision for credit losses decreased to $1.0 million.

• Net interest margin increased to 3.69% for the first half and 3.67% for Q2 2026.

• Non-interest income rose 8.6% to $7.70 million, mainly from higher BOLI earnings and gains in equity securities.

• Non-interest expenses increased 2.7% to $33.47 million, mainly due to higher salaries, legal fees, and fraud-related costs.

• Total deposits grew by $17.6 million to $2.39 billion; borrowed funds increased by $84.6 million to $394.0 million.

Outlook and guidance

• Management expects continued organic loan and investment growth, with a focus on maintaining strong liquidity and capital adequacy.

• The company is monitoring interest rate trends and plans to leverage investment strategies to optimize yield.

• Management notes ongoing economic impacts from the Iran conflict, particularly on diesel and fertilizer prices, affecting credit loss provisions.

• Anticipates recognizing $7.4 million in low-income housing tax credits over the next 11 years.

• Forward-looking statements caution about risks from economic conditions, interest rates, and regulatory changes.