#United States #Q3 2025 #Mansfield #Citizens Financial #First Citizens Community Bank

Citizens Financial Services, Inc. Third Quarter 2025 Financial Results

On October 30, 2025, Citizens Financial Services, Inc. (Nasdaq: CZFS), the parent company of First Citizens Community Bank, announced its unaudited financial results for the three and nine months ending September 30, 2025. This quarter has shown significant growth in net income and other key financial metrics compared to the same period last year, reflecting a robust performance in various operational sectors.

Financial Highlights

During the first nine months of 2025, the company reported a net income of $26.09 million, marking a remarkable increase of $6.25 million or 31.5% from $19.84 million in 2024. The growth was largely attributed to a surge in net interest income, which after accounting for credit losses stood at $71.79 million, up from $63.58 million the previous year, a rise of 12.9%. Consequently, the average return on equity also saw an annualized rise to 11.15% from 9.23%.

In the third quarter alone, net income reached $10.01 million, significantly higher than $7.54 million reported during the same period in 2024, showcasing a 32.7% growth. Basic earnings per share improved to $2.09 from $1.57, highlighting the company's commitment to shareholder value.

Detailed Income Analysis

The net interest income before credit losses for the first nine months was substantial, increasing from $63.58 million to $71.79 million, boosted by both investment income and a reduction in interest expenses. For the quarter ending September 30, net interest income was recorded at $25.14 million, compared to $21.32 million in the previous year.

The adjusted return on average assets for the first nine months stood at 1.16%, reflecting more effective asset management compared to 0.89% in 2024. The adjustments are a part of the company's strategy to improve its financial health under varying market conditions.

Non-Performing Assets and Credit Losses

In terms of asset quality, the report indicated a decline in non-performing assets, reduced by $5.62 million since December 31, 2024, totaling $22.99 million by September 30, 2025. The improvement in asset quality reflects the company’s ongoing efforts to strengthen its credit evaluation processes and mitigate risks.

For the nine months ended September 30, 2025, the provision for credit losses amounted to $1.88 million, a decrease from $2.59 million in 2024, showcasing a proactive approach to managing potential risks given current economic forecasts.

Strong Balance Sheet

As of September 30, 2025, Citizens Financial Services reported total assets of $3.06 billion, representing a slight increase from the previous periods. Loans outstanding totaled $2.31 billion, indicating stable growth in lending activities despite market challenges.

The company's net loans increased marginally from $2.29 billion, with careful enhancements in other commercial loan segments contributing to this growth. Notably, the allowance for credit losses on loans was positioned at $22.45 million, reflecting the company's prudent approach to risk management amidst fluctuating economic conditions.

Shareholder Returns and Dividends

A noteworthy aspect of the report was the declaration of a cash dividend of $0.50 per share, an increase over the prior cash dividend of $0.485 per share, demonstrating Citizens Financial’s dedication to returning value to its shareholders. This dividend was paid out on September 26, 2025, highlighting a commitment to improving shareholder returns.

Overall, the financial results indicate a strong foundation for Citizens Financial Services, characterized by increased profitability, improved asset quality, and a commitment to efficiency and shareholder value in a competitive market environment.