CITIZENS FINANCIAL SERVICES, INC. REPORTS UNAUDITED THIRD QUARTER 2025 FINANCIAL RESULTS

MANSFIELD, Pa., Oct. 30, 2025 /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 and nine months ended September 30, 2025.

Highlights

Nine Months Ended September 30, 2025 Compared to 2024

Three Months Ended September 30, 2025 Compared to 2024

Balance Sheet and Other Information:

Dividend Declared

On September 2, 2025, the Board of Directors declared a cash dividend of $0.50 per share, which was paid on September 26, 2025 to shareholders of record at the close of business on September 12, 2025. This quarterly cash dividend is an increase of 3.1% over the regular 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 1,850 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.

CONSOLIDATED FINANCIAL HIGHLIGHTS

(UNAUDITED)

(Dollars in thousands, except per share data)

As of or For The

Three Months Ended

Nine Months Ended

September 30,

2025

2024

2025

2024

Income and Performance Ratios

Net Income

$ 10,005

$ 7,536

$ 26,089

$ 19,835

Return on average assets (annualized)

1.33 %

1.01 %

1.16 %

0.89 %

Return on average equity (annualized)

12.52 %

10.31 %

11.15 %

9.23 %

Return on average tangible equity (annualized) (a)

17.29 %

14.82 %

15.56 %

13.39 %

Net interest margin (tax equivalent) (a)

3.60 %

3.09 %

3.44 %

3.09 %

Earnings per share - basic (b)

$ 2.09

$ 1.57

$ 5.44

$ 4.14

Earnings per share - diluted (b)

$ 2.09

$ 1.57

$ 5.44

$ 4.13

Cash dividends paid per share (b)

$ 0.500

$ 0.485

$ 1.480

$ 1.446

Number of shares used in computation - basic (b)

4,796,946

4,796,752

4,797,335

4,796,061

Number of shares used in computation - diluted (b)

4,798,051

4,798,297

4,799,466

4,801,000

Asset quality

Allowance for credit losses - loans

$ 22,454

$ 21,695

Non-performing assets

$ 22,994

$ 24,045

Allowance for credit losses - loans to total loans

0.96 %

0.93 %

Non-performing assets to total loans

0.98 %

1.03 %

Annualized net charge-offs to total loans

0.00 %

0.21 %

0.05 %

0.15 %

Equity

Book value per share (b)

$ 68.16

$ 62.13

Tangible book value per share (a) (b)

$ 49.83

$ 43.65

Market value per share (Last reported trade of month)

$ 60.28

$ 58.75

Common shares outstanding

4,807,314

4,759,730

Other

Average Full Time Equivalent Employees

381.5

395.7

379.6

393.0

Loan to Deposit Ratio

96.86 %

95.14 %

Trust assets under management

$ 194,325

$ 181,052

Brokerage assets under management

$ 341,487

$ 388,594

Balance Sheet Highlights

September 30,

December 31,

September 30,

2025

2024

Assets

$ 3,056,421

$ 3,025,724

$ 3,026,468

Investment securities

453,160

427,659

420,920

Loans (net of unearned income)

2,335,388

2,313,242

2,331,002

Allowance for credit losses - loans

22,454

21,699

21,695

Deposits

2,411,203

2,382,028

2,450,149

Stockholders' Equity

327,682

299,734

298,654

(a) See reconciliation of GAAP and Non-GAAP measures at the end of the press release:

(b) Prior period amounts were adjusted to reflect stock dividends.

CITIZENS FINANCIAL SERVICES, INC.

CONSOLIDATED BALANCE SHEET

(UNAUDITED)

September 30,

December 31,

September 30,

(in thousands, except share data)

2025

2024

ASSETS:

Cash and due from banks:

Noninterest-bearing

$ 24,529

$ 30,284

$ 26,780

Interest-bearing

6,546

11,918

9,983

Total cash and cash equivalents

31,075

42,202

36,763

Interest bearing time deposits with other banks

3,820

Equity securities

1,803

1,747

1,730

Available-for-sale securities

451,357

425,912

419,190

Loans held for sale

13,508

9,607

13,520

Loans (net of allowance for credit losses - loans: $22,454 at September 30, 2025;

$21,699 at December 31, 2024 and $21,695 at September 30, 2024)

2,312,934

2,291,543

2,309,307

Premises and equipment

21,508

21,395

21,237

Accrued interest receivable

11,412

10,307

10,803

Goodwill

85,758

Bank owned life insurance

51,132

50,341

50,084

Other intangibles

2,374

2,892

3,083

Fair value of derivative instruments - asset

7,487

10,370

8,993

Deferred tax asset

12,294

15,199

14,449

Other assets

49,959

54,631

47,731

TOTAL ASSETS

$ 3,056,421

$ 3,025,724

$ 3,026,468

LIABILITIES:

Deposits:

Noninterest-bearing

$ 522,168

$ 532,776

$ 548,218

Interest-bearing

1,889,035

1,849,252

1,901,931

Total deposits

2,411,203

2,382,028

2,450,149

Borrowed funds

279,589

297,721

231,732

Accrued interest payable

3,754

4,693

5,549

Fair value of derivative instruments - liability

4,332

5,817

4,763

Other liabilities

29,861

35,731

35,621

TOTAL LIABILITIES

2,728,739

2,725,990

2,727,814

STOCKHOLDERS' EQUITY:

Preferred Stock $1.00 par value; authorized

3,000,000 shares; none issued in 2025 or 2024

Common stock

$1.00 par value; authorized 25,000,000 shares at September 30, 2025, December 31, 2024 and

September 30, 2024: issued 5,255,464 at September 30, 2025 and 5,207,577 at December 31, 2024

and 5,207,343 at September 30, 2024

5,255

5,208

5,207

Additional paid-in capital

147,971

144,984

144,927

Retained earnings

205,542

189,443

183,792

Accumulated other comprehensive loss

(14,650)

(23,521)

(18,916)

Treasury stock, at cost: 449,087 shares at September 30, 2025 and 447,965 shares

at December 31, 2024 and 447,613 shares at September 30, 2024

(16,436)

(16,380)

(16,356)

TOTAL STOCKHOLDERS' EQUITY

327,682

299,734

298,654

TOTAL LIABILITIES AND

STOCKHOLDERS' EQUITY

$ 3,056,421

$ 3,025,724

$ 3,026,468

CITIZENS FINANCIAL SERVICES, INC.

CONSOLIDATED STATEMENT OF INCOME

(UNAUDITED)

Three Months Ended

Nine Months Ended

September 30,

(in thousands, except share and per share data)

2025

2024

2025

2024

INTEREST INCOME:

Interest and fees on loans

$ 36,418

$ 35,858

$ 107,201

$ 106,058

Interest-bearing deposits with banks

119

190

394

695

Investment securities:

Taxable

2,595

1,736

7,331

5,023

Nontaxable

684

517

1,815

1,569

Dividends

438

388

1,276

1,179

TOTAL INTEREST INCOME

40,254

38,689

118,017

114,524

INTEREST EXPENSE:

Deposits

11,501

13,475

35,244

38,451

Borrowed funds

3,613

3,890

10,983

12,491

TOTAL INTEREST EXPENSE

15,114

17,365

46,227

50,942

NET INTEREST INCOME

25,140

21,324

71,790

63,582

Provision (release) for credit losses

500

(200)

1,875

2,587

NET INTEREST INCOME AFTER

PROVISION (RELEASE) FOR CREDIT LOSSES

24,640

21,524

69,915

60,995

NON-INTEREST INCOME:

Service charges

1,598

1,636

4,192

4,393

Trust

186

184

593

629

Brokerage and insurance

761

545

2,071

1,773

Gains on loans sold

709

752

1,720

1,648

Equity security gains, net

159

127

Earnings on bank owned life insurance

363

338

1,064

1,334

Gain on sale of Braavo division

1,102

Other

203

141

1,250

1,056

TOTAL NON-INTEREST INCOME

3,854

3,755

10,946

12,062

NON-INTEREST EXPENSES:

Salaries and employee benefits

9,924

9,715

30,189

29,622

Occupancy

1,320

1,215

3,858

3,805

Furniture and equipment

273

260

856

791

Professional fees

493

620

1,535

2,021

FDIC insurance expense

395

555

1,340

1,589

Pennsylvania shares tax

430

226

1,054

866

Amortization of intangibles

113

136

367

432

Software expenses

457

500

1,342

1,508

Other real estate owned expenses

198

246

Other

2,723

2,718

7,970

8,038

TOTAL NON-INTEREST EXPENSES

16,134

16,029

48,709

48,918

Income before provision for income taxes

12,360

9,250

32,152

24,139

Provision for income tax expense

2,355

1,714

6,063

4,304

NET INCOME

$ 10,005

$ 7,536

$ 26,089

$ 19,835

PER COMMON SHARE DATA:

Net Income - Basic

$ 2.09

$ 1.57

$ 5.44

$ 4.14

Net Income - Diluted

$ 2.09

$ 1.57

$ 5.44

$ 4.13

Cash Dividends Paid

$ 0.500

$ 0.485

$ 1.480

$ 1.446

Number of shares used in computation - basic

4,796,946

4,796,752

4,797,335

4,796,061

Number of shares used in computation - diluted

4,798,051

4,798,297

4,799,466

4,801,000

CITIZENS FINANCIAL SERVICES, INC.

QUARTERLY CONDENSED, CONSOLIDATED INCOME STATEMENT INFORMATION

(UNAUDITED)

(in thousands, except per share data)

Three Months Ended,

Sept 30,

June 30,

March 31,

Dec 31,

Sept 30,

2025

2024

Interest income

$ 40,254

$ 38,749

$ 39,014

$ 39,793

$ 38,689

Interest expense

15,114

15,101

16,012

16,920

17,365

Net interest income

25,140

23,648

23,002

22,873

21,324

Provision (release) for credit losses

500

750

625

(200)

Net interest income after provision (release) for credit losses

24,640

22,898

22,377

22,873

21,524

Non-interest income

3,820

3,632

3,438

3,321

3,596

Investment securities gains (losses), net

(11)

159

Non-interest expenses

16,134

16,147

16,428

16,668

16,029

Income before provision for income taxes

12,360

10,416

9,376

9,544

9,250

Provision for income tax expense

2,355

1,953

1,755

1,561

1,714

Net income

$ 10,005

$ 8,463

$ 7,621

$ 7,983

$ 7,536

Earnings Per Share - Basic

$ 2.09

$ 1.76

$ 1.59

$ 1.66

$ 1.57

Earnings Per Share - Diluted

$ 2.09

$ 1.76

$ 1.59

$ 1.66

$ 1.57

CITIZENS FINANCIAL SERVICES, INC.

CONSOLIDATED AVERAGE BALANCES, INTEREST, YIELDS AND RATES, AND NET INTEREST MARGIN ON A FULLY TAX-EQUIVALENT BASIS

(UNAUDITED)

Three Months Ended September 30,

2025

2024

Average

Balance (1)

Interest

Rate

Balance (1)

Interest

Rate

(dollars in thousands)

ASSETS

Interest-bearing deposits at banks

19,597

1.82

18,374

160

3.44

Interest bearing time deposits at banks

3,820

3.01

3,820

3.12

Investment securities:

Taxable

381,036

3,033

3.18

352,377

2,124

2.41

Tax-exempt (3)

110,638

865

3.13

104,342

653

2.50

Investment securities

491,674

3,898

3.17

456,719

2,777

2.43

Loans: (2)(3)(4)

Residential mortgage loans

343,920

5,227

6.03

355,551

5,322

5.95

Construction loans

120,492

2,122

6.99

183,521

3,473

7.53

Commercial Loans

1,339,367

22,204

6.58

1,258,916

20,019

6.33

Agricultural Loans

362,260

5,252

5.75

356,105

4,816

5.38

Loans to state & political subdivisions

52,248

514

3.90

55,418

553

3.97

Other loans

66,908

1,203

7.13

87,752

1,785

8.09

Loans, net of discount (2)(3)(4)

2,285,195

36,522

6.34

2,297,263

35,968

6.23

Total interest-earning assets

2,800,286

40,539

5.74

2,776,176

38,935

5.58

Cash and due from banks

9,912

9,119

Bank premises and equipment

21,718

20,864

Other assets

187,100

197,275

Total non-interest earning assets

218,730

227,258

Total assets

3,019,016

3,003,434

LIABILITIES AND STOCKHOLDERS' EQUITY

Interest-bearing liabilities:

Business Interest Checking

20,624

0.88

NOW accounts

701,732

3,702

2.09

736,449

4,559

2.46

Savings accounts

284,316

327

0.46

293,990

387

0.52

Money market accounts

459,993

3,257

2.81

406,363

3,366

3.30

Certificates of deposit

458,402

4,169

3.61

502,226

5,163

4.09

Total interest-bearing deposits

1,925,067

11,501

2.37

1,939,028

13,475

2.76

Other borrowed funds

321,632

3,613

4.46

319,909

3,890

4.84

Total interest-bearing liabilities

2,246,699

15,114

2.67

2,258,937

17,365

3.06

Demand deposits

394,863

393,632

Other liabilities

37,587

34,487

Total non-interest-bearing liabilities

432,450

428,119

Stockholders' equity

339,867

316,378

Total liabilities & stockholders' equity

3,019,016

3,003,434

Net interest income

25,425

21,570

Net interest spread (5)

3.07 %

2.52 %

Net interest income as a percentage

of average interest-earning assets

3.60 %

3.09 %

Ratio of interest-earning assets

to interest-bearing liabilities

125 %

123 %

(1) Averages are based on daily averages.

(2) Includes loan origination and commitment fees.

(3) Tax exempt interest revenue is shown on a tax equivalent basis for proper comparison using

a statutory federal income tax rate of 21% for 2025 and 2024. See reconciliation of GAAP and non-gaap measures at the end

of the press release

(4) Income on non-accrual loans is accounted for on a cash basis, and the loan balances are included in interest-earning assets.

(5) Interest rate spread represents the difference between the average rate earned on interest-earning assets

and the average rate paid on interest-bearing liabilities.

CITIZENS FINANCIAL SERVICES, INC.

CONSOLIDATED AVERAGE BALANCES, INTEREST, YIELDS AND RATES, AND NET INTEREST MARGIN ON A FULLY TAX-EQUIVALENT BASIS

(UNAUDITED)

Nine Months Ended September 30,

2025

2024

Average

Balance (1)

Interest

Rate

Balance (1)

Interest

Rate

(dollars in thousands)

ASSETS

Interest-bearing deposits at banks

24,479

306

1.67

29,242

605

2.76

Interest bearing time deposits at banks

3,820

3.08

3,898

3.08

Investment securities:

Taxable

381,600

8,607

3.01

356,871

6,202

2.32

Tax-exempt (3)

105,477

2,297

2.90

105,734

1,986

2.50

Investment securities

487,077

10,904

2.98

462,605

8,188

2.36

Loans: (2)(3)(4)

Residential mortgage loans

347,071

15,539

5.99

357,089

15,612

5.84

Construction loans

149,505

8,010

7.16

185,832

10,331

7.43

Commercial Loans

1,301,875

62,345

6.40

1,264,459

60,676

6.41

Agricultural Loans

359,144

14,948

5.56

348,919

13,703

5.25

Loans to state & political subdivisions

53,004

1,549

3.91

56,116

1,659

3.94

Other loans

94,947

5,118

7.21

72,908

4,402

8.07

Loans, net of discount (2)(3)(4)

2,305,546

107,509

6.23

2,285,323

106,383

6.22

Total interest-earning assets

2,820,922

118,807

5.63

2,781,068

115,266

5.54

Cash and due from banks

9,734

9,379

Bank premises and equipment

21,700

21,068

Other assets

179,430

184,561

Total non-interest earning assets

210,864

215,008

Total assets

3,031,786

2,996,076

LIABILITIES AND STOCKHOLDERS' EQUITY

Interest-bearing liabilities:

Business Interest Checking

18,881

132

0.93

NOW accounts

716,279

11,498

2.15

767,406

14,557

2.53

Savings accounts

288,467

1,003

0.46

298,450

1,165

0.52

Money market accounts

442,024

9,463

2.86

389,655

9,131

3.13

Certificates of deposit

473,565

13,148

3.71

460,890

13,598

3.94

Total interest-bearing deposits

1,939,216

35,244

2.43

1,916,401

38,451

2.68

Other borrowed funds

332,310

10,983

4.42

340,132

12,491

4.91

Total interest-bearing liabilities

2,271,526

46,227

2.72

2,256,533

50,942

3.02

Demand deposits

385,704

382,340

Other liabilities

40,794

44,303

Total non-interest-bearing liabilities

426,498

426,643

Stockholders' equity

333,762

312,900

Total liabilities & stockholders' equity

3,031,786

2,996,076

Net interest income

72,580

64,324

Net interest spread (5)

2.91 %

2.52 %

Net interest income as a percentage

of average interest-earning assets

3.44 %

3.09 %

Ratio of interest-earning assets

to interest-bearing liabilities

124 %

123 %

(1) Averages are based on daily averages.

(2) Includes loan origination and commitment fees.

(3) Tax exempt interest revenue is shown on a tax equivalent basis for proper comparison using

a statutory federal income tax rate of 21% for 2025 and 2024. See reconciliation of GAAP and non-gaap measures at the end

of the press release

(4) Income on non-accrual loans is accounted for on a cash basis, and the loan balances are included in interest-earning assets.

(5) Interest rate spread represents the difference between the average rate earned on interest-earning assets

and the average rate paid on interest-bearing liabilities.

CITIZENS FINANCIAL SERVICES, INC.

CONSOLIDATED SUMMARY OF LOANS BY TYPE; NON-PERFORMING ASSETS; and ALLOWANCE FOR CREDIT LOSSES

(UNAUDITED)

(Excludes Loans Held for Sale)

(In Thousands)

September 30,

June 30,

March 31,

December 31,

September 30,

2025

2024

Real estate:

Residential

$ 344,790

$ 341,671

$ 350,221

$ 351,398

$ 353,254

Commercial

1,180,655

1,151,585

1,117,240

1,121,435

1,110,548

Agricultural

342,487

331,995

329,985

327,722

331,734

Construction

107,867

138,307

168,896

164,326

178,706

Consumer

109,458

22,364

109,339

109,505

123,286

Other commercial loans

171,345

174,740

158,133

155,012

154,063

Other agricultural loans

27,142

28,366

28,488

29,662

24,537

State & political subdivision loans

51,644

52,727

53,361

54,182

54,874

Total loans

2,335,388

2,241,755

2,315,663

2,313,242

2,331,002

Less: allowance for credit losses - loans

22,454

22,109

22,081

21,699

21,695

Net loans

$ 2,312,934

$ 2,219,646

$ 2,293,582

$ 2,291,543

$ 2,309,307

Past due and non-performing assets

Total loans past due 30-89 days and still accruing

$ 13,228

$ 18,554

$ 9,632

$ 8,015

$ 7,423

Non-accrual loans

$ 20,523

$ 24,595

$ 23,545

$ 25,701

$ 20,858

Loans past due 90 days or more and still accruing

347

1,393

276

701

Non-performing loans

$ 20,560

$ 24,942

$ 24,938

$ 25,977

$ 21,559

Other real estate owned

2,434

2,544

2,635

2,486

Total Non-performing assets

$ 22,994

$ 27,376

$ 27,482

$ 28,612

$ 24,045

Three Months Ended

Analysis of the Allowance for Credit Losses - Loans

September 30,

June 30,

March 31,

December 31,

September 30,

(In Thousands)

2025

2024

Balance, beginning of period

$ 22,109

$ 22,081

$ 21,699

$ 21,695

$ 22,797

Charge-offs

(20)

(596)

(185)

(105)

(1,212)

Recoveries

Net charge-offs

(3)

(571)

(156)

(86)

(1,202)

Provision for credit losses - loans

348

599

538

100

Balance, end of period

$ 22,454

$ 22,109

$ 22,081

$ 21,699

$ 21,695

CITIZENS FINANCIAL SERVICES, INC.

Reconciliation of GAAP and Non-GAAP Financial Measures

(UNAUDITED)

(Dollars in thousands, except per share data)

As of

September 30

2025

2024

Tangible Equity

Stockholders' Equity - GAAP

$ 327,682

$ 298,654

Intangible Assets

(88,132)

(88,841)

Tangible Equity - Non-GAAP

239,550

209,813

Shares outstanding adjusted for June 2025 stock Dividend

4,807,314

4,806,803

Tangible Book value per share - Non-GAAP

$ 49.83

$ 43.65

As of

September 30

2025

2024

Tangible Equity per share

Stockholders' Equity per share - GAAP

$ 68.16

$ 62.13

Adjustment for intangible assets

(18.33)

(18.48)

Tangible Book value per share - Non-GAAP

$ 49.83

$ 43.65

For the Three Months Ended

For the Nine Months Ended

September 30

2025

2024

2025

2024

Return on Average Assets Excluding Accumulated Other Comprehensive Loss (AOCL)

Average Assets - GAAP

$ 2,998,788

$ 2,979,371

$ 3,009,997

$ 2,969,857

Average AOCL

(20,228)

(24,063)

(21,789)

(26,219)

Average Assets, Excluding AOCL - Non-GAAP

3,019,016

3,003,434

3,031,786

2,996,076

Net Income - GAAP

$ 10,005

$ 7,536

$ 26,089

$ 19,835

Annualized Return on Average Assets-GAAP

1.33 %

1.01 %

1.16 %

0.89 %

Annualized Return on Average Assets, Excluding AOCL - Non-GAAP

1.33 %

1.00 %

1.15 %

0.88 %

For the Three Months Ended

For the Nine Months Ended

September 30

2025

2024

2025

2024

Return on Average Equity Excluding Accumulated Other Comprehensive Loss (AOCL)

Average Stockholders' Equity - GAAP

$ 319,639

$ 292,315

$ 311,973

$ 286,681

Average AOCL

(20,228)

(24,063)

(21,789)

(26,219)

Average Stockholders' Equity, Excluding AOCL - Non-GAAP

339,867

316,378

333,762

312,900

Net Income - GAAP

$ 10,005

$ 7,536

$ 26,089

$ 19,835

Annualized Return on Average Stockholders' Equity-GAAP

12.52 %

10.31 %

11.15 %

9.23 %

Annualized Return on Average Stockholders' Equity, Excluding AOCL - Non-GAAP

11.78 %

9.53 %

10.42 %

8.45 %

For the Three Months Ended

For the Nine Months Ended

September 30

2025

2024

2025

2024

Return on Average Tangible Equity

Average Stockholders' Equity - GAAP

$ 319,639

$ 292,315

$ 311,973

$ 286,681

Average Intangible Assets

(88,217)

(88,931)

(88,390)

(89,123)

Average Tangible Equity - Non-GAAP

231,422

203,384

223,583

197,558

Net Income - GAAP

$ 10,005

$ 7,536

$ 26,089

$ 19,835

Annualized Return on Average Tangible Equity Non-GAAP

17.29 %

14.82 %

15.56 %

13.39 %

For the Three Months Ended

For the Nine Months Ended

September 30

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

$ 10,005

$ 7,536

$ 26,089

$ 19,835

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

$ 10,005

$ 7,536

$ 26,089

$ 20,550

Average Assets

2,998,788

2,979,371

3,009,997

2,969,857

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

1.33 %

1.01 %

1.16 %

0.92 %

Average Stockholders' Equity - GAAP

$ 319,639

$ 292,315

$ 311,973

$ 286,681

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

12.52 %

10.31 %

11.15 %

9.56 %

Average Tangible Equity - Non-GAAP

231,422

203,384

223,583

197,558

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

17.29 %

14.82 %

15.56 %

13.87 %

For the Three Months Ended

For the Nine Months Ended

September 30

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

$ 10,005

$ 7,536

$ 26,089

$ 19,835

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

$ 10,005

$ 7,536

$ 26,089

$ 20,550

Number of shares used in computation - basic

4,796,946

4,796,752

4,797,335

4,796,061

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

$ 2.09

$ 1.57

$ 5.44

$ 4.28

For the Three Months Ended

For the Nine Months Ended

September 30

Reconciliation of net interest income on fully taxable equivalent basis

2025

2024

2025

2024

Total interest income

$ 40,254

$ 38,689

$ 118,017

$ 114,524

Total interest expense

15,114

17,365

46,227

50,942

Net interest income

25,140

21,324

71,790

63,582

Tax equivalent adjustment

285

246

790

742

Net interest income (fully taxable equivalent) - Non-GAAP

$ 25,425

$ 21,570

$ 72,580

$ 64,324

SOURCE CITIZENS FINANCIAL SERVICES, INC.